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Over the last couple years, Captain D's Seafood Kitchen has implemented a number of initiatives in its rebranding effort, from a revamped menu to reimaged stores and a new advertising campaign.
In the second half of 2008, all those elements came together, boosted by its new "Sit down food at fast food prices" messaging.
"Captain D's is relevant again," said David Head, newly named as the company's chairman and CEO.
Head, the company's president and chief operating officer since 2006, took on the new title and responsibilities last month after parent company Sagittarius Brands chairman and CEO Nick Shepherd left for another company.
Captain D's started as Mr. D's in 1969 and became Captain D's in 1974 as it merged with Shoney's Inc. In the 1990s Captain D's suffered as Shoney's struggled, yet Captain D's went forward with a reimaging campaign in 1999 aimed at positioning itself as fast casual. Lone Star Funds bought the brands in 2002, and Sagittarius Brands took over Captain D's in 2005.
Sagittarius put a stronger push behind the reimaging process in 2006, rebranding the quick-service concept as Captain D's Seafood Kitchen as it sought to refresh its aging stores and update its fried seafood offerings.
Messaging hits home
The rebranding campaign has reenergized and reinvigorated the franchise system, while the company focused on driving sales and controlling costs, Head said. But it was the brand's new advertising campaign that seemed to deliver the message to consumers.
One of those TV spots featured a taste test in a Red Lobster parking lot, to which Red Lobster responded with a cease and desist letter. Captain D's followed with a micro site IRefusetoCeaseandDesist.com.
The messaging achieved its goal.
"To be relevant again and get people talking about it is huge," Head said. "In what is clearly a difficult time for restaurants or any retail business, we've been able to perform well."
Captain D's uses a variety of tools common to the restaurant industry to manage costs and assess its customer satisfaction. While all are well used on a daily basis, the company is putting much of its attention toward guest loyalty, he said.
Refining the service model
Customer service is important to the brand, as it competes with other QSR segments with value menus and speedier drive-thru times. Instead of dollar menus, Captain D's offers a variety of full meals with the choice of two sides from more than 10 options.
The chain has tested a value menu but found that customers prefer the company's long-standing tradition of offering daily specials and coupons, said Sandy Smith, senior vice president of marketing for Captain D's.
And so far, the company hasn't found a way to satisfactorily maintain its cooked seafood in holding bins. Therefore, most items are made to order.
"If I could figure out how to do it and still maintain quality, I'd do it in a heartbeat, we just haven't gotten there yet," Head said.
To differentiate itself — and compete with full-service seafood restaurants — the stores have always offered some dining room service, such as refilling drinks or clearing plates in the dining room.
"When we do that, it's a big driver of guest satisfaction," Head said, adding that some franchised stores also deliver orders to the tables.
"When we do that, it's a big driver of guest satisfaction," Head said, adding that some franchised stores also deliver orders to the tables.
The brand's company stores — about half of its nearly 600 — introduced pagers like those used in casual dining early last year to provide a better in-store atmosphere. At most franchised stores, staff still announce order numbers over a speaker system.
The pager system relieves congestion at the counter and elevates the ambience, Head said.
"We are QSR, but inside the restaurant we have an opportunity to deliver a fast casual experience — the industry will call it that (but) the guest just knows it as 'Yeah, I get some service at Captain D's and I might not anywhere else,'" he said.
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The company also has found that high customer satisfaction scores correlate to higher store sales averages. Since the company has instituted the tool and incorporated it as a measurement of store success, it has seen its systemwide average score go up in each of the three years.
"The guest loyalty tool measures people's perception of how we're doing, and perception is reality," Head said. "So of all the tools that we have to determine how well we're taking care of guests, that one is our leading indicator to tell us that we're meeting or exceeding their expectations in delivering a good dining experience."
Each restaurant is measured according to its customer satisfaction results, with management compensation tied in. Stores are also compared to each other.
Working to improve
But there are still weak links in the system. In the last few months, the company has found that its managers' problem resolution skills at the store level were largely unacceptable. The company developed a program and last month trained all its general managers on the importance of and the skills used in helping resolve complaints or problems.
The brand also has a complex menu, with offerings from fried fish and shrimp to grilled salmon and tilapia as well as its variety of sides. Preparation times are slower than many QSR segments, and Head would like to change that.
"It's hard. We're not a simple concept," he said. "What we're engaged in now is some initiatives to engage technology to be a better predictor."
For example, Captain D's is testing HyperActive Technologies' HyperActive Bob predictive kitchen technology solution. That technology can predict with relative accuracy what customers are likely to order from the time they arrive in the parking lot.
The company also has hired a consultant to revamp the store's kitchens, from its design to the equipment's ergonomics.
"We're basically thinking from scratch," Head said. "Our problem is that we can execute this, it just takes more time, and our speed is our biggest challenge."
Captain D's company headquarters: Nashville, Tenn.
Parent company: Sagittarius Brands, which also owns the Del Taco chain.
Number of units: 580 restaurants in 26 of the United States, primarily in the Southeast, plus several military bases around the world. About half are company owned. About 50 stores have been added since Sagittarius took over.
Plans for growth: Captain D's company stores are focusing on reimaging, which costs $120,000-$150,000 per store. Once the economy improves, the company plans for franchise-store growth to move into new markets, particularly west into Texas and further into the Midwest.
Employees: Approximately 12,000. Captain D's reduced turnover to the "double digits," said CEO David Head, after implementing an employee screening service that helps the company select staff with a service mindset.
Latest revenue figures: The privately held company has sales of about $500 million.
Menu innovations: The menu was revamped in 2006, expanding its grilled seafood offerings to include salmon and tilapia and its side item choices to 11. Fried offerings still make up 85-90 percent of sales.
Average ticket price per guest: Slightly more than $6.
Brand rival: Louisville, Ky.-based Long John Silver, which has more than 1,100 units worldwide. Long John Silver introduced grilled salmon and tilapia last fall.
Captain D's company headquarters: Nashville, Tenn.
Parent company: Sagittarius Brands, which also owns the Del Taco chain.
Number of units: 580 restaurants in 26 of the United States, primarily in the Southeast, plus several military bases around the world. About half are company owned. About 50 stores have been added since Sagittarius took over.
Plans for growth: Captain D's company stores are focusing on reimaging, which costs $120,000-$150,000 per store. Once the economy improves, the company plans for franchise-store growth to move into new markets, particularly west into Texas and further into the Midwest.
Employees: Approximately 12,000. Captain D's reduced turnover to the "double digits," said CEO David Head, after implementing an employee screening service that helps the company select staff with a service mindset.
Latest revenue figures: The privately held company has sales of about $500 million.
Menu innovations: The menu was revamped in 2006, expanding its grilled seafood offerings to include salmon and tilapia and its side item choices to 11. Fried offerings still make up 85-90 percent of sales.
Average ticket price per guest: Slightly more than $6.
Brand rival: Louisville, Ky.-based Long John Silver, which has more than 1,100 units worldwide. Long John Silver introduced grilled salmon and tilapia last fall.
