Mr. Boppell: Sizzler International, Inc. is a multi-concept restaurant company made up of three distinct divisions. In terms of store count, the largest division is our United States Sizzler' group. This currently consists of 67 company-owned and -operated units and 190 franchise units in the United States and Latin America. Our international division is headquartered in Brisbane, Australia, and oversees 57 Sizzler' franchise or joint venture units in the Far East, as well as 31 company-owned Sizzler' locations in Australia. We also have the exclusive license agreement with Tricon to operate KFCs' in Queensland, Australia, and we presently operate 104 under that agreement. Our third division is Oscar's, which became part of the Sizzler International family in August 2000. Oscar's is an exciting concept that currently consists of 10 units, with nine of those in Southern California and one in Arizona.
TWST: How does the Oscar's brand differ from Sizzler'?
Mr. Boppell: Let's start with the Sizzler' brand, which has been a
household name for many years. We're nearing the end of the process of
repositioning the brand and are very excited about the customer response
we've received. In repositioning, we're going from more of a buffet,
food bar concept to a mid-scale grill concept that features steak and a
great salad bar. We're seeing a move to steak and other grill items in
the menu mix compared to where we were a year ago, and I think that's
primarily because of our repositioning and changing our cooking
equipment and our seasonings. We've also upgraded the quality of the
meat we serve and that's increased our steak consumption by quite a bit,
but our salad bar continues to do very well. What we've done there is go
to more of an upscale salad bar feel and less of a food bar by
eliminating some of the hot foods and some of the macaroni salads and
those types of food items. We feel that we're in a good position going
forward, but we're not just a steakhouse. We have great fish, chicken,
as well as some pork products and ribs, and so we're trying to move away
from that image of being just a steakhouse to being recognized as a
great grill concept. Oscar's is a newer and more contemporary concept
that is similar to Sizzler' only in its service style. It has limited
service where the customer orders at the counter but the food is
delivered to your table. The d‚cor of the Oscar's restaurants has more
of an open and airy feeling, in contrast to the rich, dark woods we've
used in remodeling our Sizzler' restaurants. One of the keys to Oscar's
is its menu, which features a flavor profile and price-value proposition
that appeals to a broad range of consumers. The number one-selling item
is pizza, followed by chicken, and they feature a fantastic fresh garlic
butter bread stick that comes hot out of the oven all day long. Oscar's
also has a high percentage of sales in specialty salads and sandwiches.
So it's a very contemporary menu, that fits the contemporary lifestyle.
In mature stores, about 50% of all sales are for off-premise dining. To
have such a large percent of sales that are take-home, delivery and
catering is one of the things that really sets Oscar's apart from the
competition. They've mastered what everyone has talked about, which is
the home meal replacement. Most people talk about it and get a small
percentage. Oscar's locations generate a very large percentage of their
sales through that part of the market.
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