🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more

Right portion, right business model

Jeremy Hobson Jun 22, 2007
HTML EMBED:
COPY

Right portion, right business model

Jeremy Hobson Jun 22, 2007
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: TGIF. I mean that sincerely, but we’re also gonna talk about the restaurant chain T.G.I. Fridaya€™s. Fridaya€™s is trying something new: smaller portions and cheaper prices. Imagine that in America. But it seems to be working, as Jeremy Hobson reports.


Jeremy Hobson: Usually, in the restaurant business, bigger is better — Whoppers, Big Gulps and those enormous Cheesecake Factory salads.

John Glass: Historically, chains that have offered large portions or a great price value have done better.

John Glass is a restaurant analyst for CIBC World Markets. He says the super-size strategy has always been popular with customers. So going smaller was a risk.

Richard Snead: Riskier than I thought in those first 60 days.

Richard Snead is the CEO of the company that owns Friday’s. He says despite tense times early on, the customer count has started climbing — and check averages have increased.

Snead: Right now, we are outperforming the category. And by the way, it is a soft environment for casual dining right now.

Analysts say the Friday’s model’s success might not be about the waistline or even the bottom line. They say it’s about choice — and maybe not having to deal with a doggie bag.

I’m Jeremy Hobson for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.