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Franchise focus: Can Captain D's hook fast casual market share?

While many may still consider the seafood restaurant a quick service restaurant, CEO Phil Greifeld said that in 2011 the chain began transitioning from a QSR to a “fresh, contemporary, affordable seafood restaurant.”

September 28, 2015 by Cherryh Cansler — Editor, FastCasual.com

Captain D’s is hoping to make a splash in the fast casual market. While many may still consider the seafood restaurant a quick service restaurant, CEO Phil Greifeld said that in 2011, the chain began transitioning from a QSR to a "fresh, contemporary, affordable seafood restaurant."

"The first step toward revitalizing the brand to fast casual began with focusing on the quality of our products," Greifeld said about the brand that reported a 5.2 percent increase in systemwide sales last quarter. "We did this by investing in procuring whole muscle fish filets, upgrading the quality of our side items and seeking out techniques for better preparation. We then looked at the menu as a whole and made changes to our offerings, focusing on full meals (complete with two sides and hushpuppies) for guests. With the addition of new appetizers, entrees using whole muscle fish and unique breading and breakthrough desserts, we continue to innovate and elevate our menu."

From new menu items and its new look, Greifeld gave FastCasual.com the scoop on how and why the world should view Captain D’s a fast casual concept.

FastCasual: What types of changes did that include (remodel? new menu?)

Greifeld: A cornerstone of our transition to the Fast Casual segment is our new fire-grilled menu. Items like surf and turf, grilled salmon, blackened tilapia and shrimp skewer and lemon pepper white fish are served with steamed rice and two sides. These are high quality, delicious meals that are meant to be enjoyed while sitting down and using a fork and knife; not while driving in the car like QSR meals. Additionally, this comprehensive menu provides lower-calorie options for the health-conscious consumer. Implementing this new menu has proven to be a positive move for Captain D’s as the offerings are drawing in a younger demographic.

Knowing that this new menu needed to be enjoyed in a similarly updated and more upscale environment, we began remodeling our restaurants with our new "Beach Image." Bright colors, contemporary design, real plate ware and flat ware and a fresh, new approach are all featured in this remodel. Guests still enjoy the D’s level of hospitality for which we’re famous, but in a more upscale and welcoming environment that exudes a vibrant coastal atmosphere and upgraded dining experience overall.

FastCasual: What was the investment (monetary) to make this happen?

Greifeld: The investment could range from $50 to 140k per restaurant.

FastCasual: Who are CD's competitors?

Greifeld: Our research indicates we compete with most of the established Fast Casual and QSR restaurants, and guests are increasingly choosing D's for our menu variety, food quality and introduction of unique offerings.

FastCasual: How many locations do you have now?

Greifeld: Currently at 511: 239 franchise and 272 company.

FastCasual: What is your growth plan? Are you growing or focused on the locations you have?

Greifeld: Beginning about 18 months ago, we expanded our growth strategy to include new franchise development as well as company restaurant development. The response has been tremendous. In just over a year, we’ve built an impressive pipeline of 53 new restaurants through franchise development agreements, and we will also open five new company restaurants over the next six months. We are only just beginning; prospective franchisees are very interested in our compounding sales success and attractive unit level economics. Our entire organization is focused on the realization that delighting our guests will drive traffic and sales growth. This comes to life through our hospitality, our marketing, our product innovation and our investment in decor and equipment.

FastCasual: Why did you decide to compete in fast casual as opposed to staying in QSR?

Truthfully, there has always been a "fast casual" DNA in the Captain D’s brand, from our level of hospitality to our freshly prepared and made-to-order food. With our recent investments and subsequent revitalization of the Captain D’s brand, the enhancements and innovations have further pushed the company into the fast casual space. The new menu items, refreshed look complete with plateware, silverware and expanded seating, and the hospitality provided by the Captain D’s team fall well within the distinction of a fast casual brand.

About Cherryh Cansler

Cherryh Cansler is VP of Events for Networld Media Group and publisher of FastCasual.com. She has been covering the restaurant industry since 2012. Her byline has appeared in Forbes, The Kansas City Star and American Fitness magazine, among many others.

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