O’Charley’s Inc. Signs License for Line of Restaurant-Branded Retail Products
Choice Food of America LLC, a local food manufacturing company with national distribution in foodservice and retail, has partnered with O’Charley’s, Inc. (NASDAQ: CHUX) to reinvigorate the restaurant chain’s brand of refrigerated salad dressings and expand the retail offering with signature food products. The agreement entails comprehensive marketing and distribution services from Choice Food of America, and represents the final element of a restructuring plan announced by O’Charley’s in July.
“A restaurant-branded retail line is a logical extension for O’Charley’s, and we are privileged to be part of it,” said Philip Connelly, President of Choice Food of America. “We think of ourselves as a marketing-driven company that happens to be in the food manufacturing business. This partnership allows us to parlay the heritage and strong recognition of the O’Charley’s brand into high-demand consumer goods that will be available through our network of grocery store and mass retail chains. Our distribution will match O’Charley’s footprint in the Southeast and Midwest.”
Connelly expects to emulate the success of other restaurant chains that have taken signature menu or menu-inspired items to retail. His company plans to evaluate items such as O’Charley’s signature yeast rolls, caramel and key lime pies, and signature “Chicken O’Tenders” for possible addition to the product lineup over the next year. In early 2008, Choice Food will also enhance the current salad dressing line with more attractive packaging and new varieties inspired by the restaurant’s menu. O’Charley’s honey mustard and other classic dressing flavors are already available in produce sections at Kroger, Publix, Harris Teeter, Food Lion, Ingles, Schnuck’s, H.G. Hill’s, Food City, Bi-Lo, Wal-Mart, Sam’s Club, and other retailers.
“A stronger retail presence enables O’Charley’s to build on patron loyalty and ultimately drive traffic to our restaurants,” said Larry Taylor, Chief Supply Chain Officer for the leading casual dining chain. “As we refresh our salad dressing line and introduce new signature items at grocery, our patrons will be able to take a piece of the O’Charley’s experience home, enjoying products with the same great taste and quality that make our menu so popular.”
The marketing and distribution strategy was set in motion in early September, when Choice Food of America brought a team of key O’Charley’s employees on board to manage current accounts and expand the retail business. The license also enables Choice Food of America to propose retail introductions for O’Charley’s two other chains, Ninety Nine Restaurants–New England’s first locally-based casual dining chain–and Stoney River Legendary Steaks.
Technomic, Inc., a leading research firm specializing in the restaurant industry, reports the full-service, varied menu restaurant segment is performing favorably in recent years, with the top 500 chains growing 10.3% in 2006. Many of these chains are actively engaged in menu development and periodically explore new twists and ethnic flavor influences on their classic offerings. Choice Food of America expects this trend to translate into the retail landscape, where supermarket shoppers display increasingly sophisticated tastes and awareness of global flavor profiles.
ABOUT O’CHARLEY’S, INC.
O’Charley’s Inc. (NASDAQ: CHUX), headquartered in Nashville, Tenn., is a multi-concept restaurant company that operates or franchises a total of 364 restaurants under three brands: O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks. The O’Charley’s concept includes 240 restaurants in 19 states in the Southeast and Midwest. Its menu, with an emphasis on fresh preparation, features several specialty items such as hand-cut and aged USDA choice steaks, a variety of seafood and chicken, freshly baked yeast rolls, fresh salads with special-recipe salad dressings and signature caramel pie. For investor information, please visit www.ocharleysinc.com.
ABOUT CHOICE FOOD OF AMERICA LLC
Choice Food of America LLC manufactures and markets high quality food products including salad dressings, condiments, sauces, baking mixes and shelf-stable soups and stews, which are sold in restaurants and retail stores nationwide. The company specializes in developing and marketing own brands and a portfolio of outside lines under licensing or private label manufacturing agreements. Among its most recognized retail brands is Vietti Chili, a regional food line manufactured in Nashville since 1898. Learn more at www.choicefoodofamerica.com and www.viettibrand.com.