BJ’s Restaurants posted one of its best quarters in recent memory, with same-store sales growth of 2.9% and a 14.6% increase in restaurant-level operating profit in the three-month period ended July 1.
Spring and early summer is typically a busy time for BJ’s, which is a destination for celebrations like graduation and Mother’s and Father’s Days.
Some new initiatives have added to the momentum recently, particularly the popular Pizookie Meal Deal, which has proven successful at driving visits.
BJ’s has also been working to simplify its operations to give employees and customers a better experience. It has gone after low-hanging fruit, such as reducing the number of steps it takes employees to enter items into the POS.
It has also been pushing reservations on its website, table tents and other outlets. Reservations jumped 42% in the second quarter on a small base, which allowed restaurants to staff and prepare better.
The result: Guest satisfaction scores rose to multi-year highs, and the number of comped items decreased in the double digits, said CEO Lyle Tick in an interview Thursday.
[Read more: BJ's Restaurants gets back to what it's great at]
BJ’s turnaround has been underway for about a year, following a leadership change that installed industry veteran Brad Richmond as interim CEO and Tick as president at the Huntington Beach, California-based casual-dining chain. Tick was promoted to CEO in June.
They have worked to recenter the brewhouse brand, focusing on improving core menu items such as the Pizookie, pizza and beer; simplifying operations; and sprucing up restaurants.
It all seemed to come together in the second quarter.
“Our business in Q2 was really firing on all cylinders,” Tick said.
The Pizookie, an ice cream-topped cookie dessert, remains a key pillar for BJ’s, both as part of the $13 meal deal; the jumbo Pizookie Platter, which went viral on TikTok earlier this year; and in limited-time flavors, such as Snickers.
After its April launch, the Snickers version became the third-best-selling seasonal Pizookie ever, Tick said. The brand is now readying the return of a pull-apart monkey bread Pizookie after fans clamored for it.
During the week, about 22% of checks include a Pizookie Meal Deal, which comes with an entree, side and choice of a mini Pizookie.
Despite the lower price point, Tick said it still contributes to a check average in the upper $40 range and a strong margin. Not everyone in the party will order the meal deal, and sometimes they add other items, he said.
But BJ’s is doing more to encourage trade-ups within the meal deal. Customers can now opt for a soup or salad and can upgrade their Pizookie to a full size.
“We’ve seen some encouraging initial pickup on it, but that’s an area where we’re gonna continue to test and learn and scale: What are the right add-ons there?” Tick said.
One thing BJ’s won’t do anytime soon is extend the meal’s availability beyond Monday-Friday. The combo works well during the week because BJ’s tends to have more capacity then, Tick explained during an earnings call Thursday. On weekends, customers need less of an incentive to come in.
Additionally, customers who order a Pizookie Meal Deal during the week tend to overindex on weekends as well and are also more likely to use BJ’s for takeout, he said.
Elsewhere on the menu, BJ’s is getting ready to roll out its reformulated pizza nationwide. The new version features a Detroit-style crust and higher-quality ingredients, such as sauce made from fresh tomatoes rather than tomato paste.
It’s currently performing well in test markets, Tick said, and will launch at all 200 of BJ’s restaurants in November.
While the Pizookie Meal Deal primarily uses value to lure in customers, the success of the new and improved pizza will hinge on taste and craveability.
“It’s the type of thing that I feel like once we get it in people’s mouths, that’s what’s gonna drive it,” Tick said.
After its smoking hot spring, things cooled off a bit for BJ’s at the beginning of July, Tick said. He chalked it up to macro factors such as the shift of the July Fourth holiday to a Friday and record travel that seemed to affect the whole full-service category.
The chain’s performance has since come back into line with prior trends. BJ’s continues to expect same-store sales growth of around 2% for the full year.
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