PAUL LEE’S CHINESE KITCHEN
Paul Lee’s Chinese Kitchen was a partnership between OSI and Paul Fleming, the innovator be-hind both Fleming’s Prime Steakhouse and Wine Bar and the successful publicly held P.F. Chang’s China Bistro. In addition to positioning itself as a neighborhood restaurant, Paul Lee’s had made take-out a key priority. The strategy for Paul Lee’s, which opened its second location in November 2004, was based on a few key elements: dual kitchens, each with its own chefs, equipment, and ingredients, to more efficiently serve both take-out and dine-in customers; a sep-arate take-out entrance to improve traffic flow; and the use of woks and deep fryers to reduce cooking time and expense and speed up customer turnover.
The core of Paul Lee’s menu was traditional Chinese food: There was almost nothing on the menu customers would not have seen in their neighborhood restaurants, from Hot & Sour Soup and Crab Rangoon to Sweet & Sour Pork and Moo Goo Gai Pan. The extensive menu featured soups and salads, chicken, seafood, meat and pork, and noodles, rice, and freshly prepared vege-tables. Aside from the traditional tea, Paul Lee’s beverage menu offered beer, wine, and what are billed as “far east spirit concoctions.” The average per person check at Paul Lee’s Chinese Kitch-en was $14, with children’s entrees at $3.99.
Some industry observers questioned whether Paul Lee’s could deliver the 25%–30% return on investment that OSI demanded with the lower average menu prices required to compete as a neighborhood Chinese restaurant. They also questioned whether the concept could match the percentage of revenue derived from alcohol delivered by the company’s other restaurants.
PAUL LEE’S CHINESE KITCHEN
Paul Lee’s Chinese Kitchen was a partnership between OSI and Paul Fleming, the innovator be-hind both Fleming’s Prime Steakhouse and Wine Bar and the successful publicly held P.F. Chang’s China Bistro. In addition to positioning itself as a neighborhood restaurant, Paul Lee’s had made take-out a key priority. The strategy for Paul Lee’s, which opened its second location in November 2004, was based on a few key elements: dual kitchens, each with its own chefs, equipment, and ingredients, to more efficiently serve both take-out and dine-in customers; a sep-arate take-out entrance to improve traffic flow; and the use of woks and deep fryers to reduce cooking time and expense and speed up customer turnover.
The core of Paul Lee’s menu was traditional Chinese food: There was almost nothing on the menu customers would not have seen in their neighborhood restaurants, from Hot & Sour Soup and Crab Rangoon to Sweet & Sour Pork and Moo Goo Gai Pan. The extensive menu featured soups and salads, chicken, seafood, meat and pork, and noodles, rice, and freshly prepared vege-tables. Aside from the traditional tea, Paul Lee’s beverage menu offered beer, wine, and what are billed as “far east spirit concoctions.” The average per person check at Paul Lee’s Chinese Kitch-en was $14, with children’s entrees at $3.99.
Some industry observers questioned whether Paul Lee’s could deliver the 25%–30% return on investment that OSI demanded with the lower average menu prices required to compete as a neighborhood Chinese restaurant. They also questioned whether the concept could match the percentage of revenue derived from alcohol delivered by the company’s other restaurants.
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