• California Pizza Kitchen plans slight price hike in November

SAN FRANCISCO -- California Pizza Kitchen Inc. (Nasdaq:CPKI) chief executive officer Fred Hipp said the casual-serve chain will raise its prices 1.1 percent when its November menu comes out. Historically, CPK changes its menu twice a year: in May and November.

Speaking at a Banc of America Securities conference on Sept. 25, Hipp said price changes will affect about one-third of the menu's 68 items.

Hipp, whose comments were Web cast through CPK's Web site, affirmed the company's commitment to defining itself as a casual dining chain rather than a pizza chain. Despite the emphasis the company's name places on pizza, he said pizza sales represent only 33 percent of CPK's total revenues.

The company is on track to open a total of 18 new restaurants in 2002 and expects revenue growth of 20 percent in 2003. Hipp also said the company has no plans to resume franchising in the future, a practice it abandoned almost five years ago. Company-owned stores, he said, give CPK's leadership greater control over consistency in operations and products.

CPK's per-store revenue average, said Hipp, is $2.9 million, and the check average per customer is about $11. He said he expects both figures will rise gradually as CPK continues broadening its non-pizza offerings (three of its top-selling items are salads, he said), and experiments with growing its wine list. Currently, a 24-bottle selection in test in limited markets has produced good results.

On Sept. 27, Dow Jones Newswires reported that Wedbush Morgan brokers had rated CPK shares "buy" and set a $28 target price. The stock has hovered near $22 for several weeks.

Related Content

User Comments – Give us your opinion!
Products & Services

Mobile Ordering

http://global.networldalliance.com/new/images/products/5933.png

5933/Mobile-Ordering

POS health test: do a quick check

http://global.networldalliance.com/new/images/products/1288.png

1288/POS-health-test-do-a-quick-check

PeopleMatter LEARN™

http://global.networldalliance.com/new/images/products/4627.png

4627/PeopleMatter-LEARN

Group Purchasing Services

http://global.networldalliance.com/new/images/products/6403.png

6403/Group-Purchasing-Services

Thr!ve Point-of-Sale

http://global.networldalliance.com/new/images/products/6811.png

6811/Thr-ve-Point-of-Sale

PCI Compliance Services

http://global.networldalliance.com/new/images/products/4892.png

4892/PCI-Compliance-Services

FireFly Point-of-Sale

http://global.networldalliance.com/new/images/products/4282.png

4282/FireFly-Point-of-Sale

PeopleMatter HIRE™

http://global.networldalliance.com/new/images/products/4625.png

4625/PeopleMatter-HIRE

Nationwide Criminal Records

http://global.networldalliance.com/new/images/products/Criminal_Search_iix.gif

1427/Nationwide-Criminal-Records

PeopleMatter SCHEDULE™

http://global.networldalliance.com/new/images/products/4628.png

4628/PeopleMatter-SCHEDULE

Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.