Much of PF Chang’s success comes from its operations practices, analysts say. Restaurant managers are partial owners in the eateries they run. This helps reduce turnover — the bane of the industry — allowing the company to deliver the key factor in a restaurant’s success: a consistent customer experience in food and service, says Sharon Zackfia, an analyst with William Blair & Co. in Chicago, who rates PF Chang’s stock outperform.
What also helps, says PF Chang Chief Executive Richard Federico, is that his places offer extras not found at many mom-and-pop Chinese restaurants: upscale decor, dessert menus, cappuccino, and a 50-bottle wine list. “PF Chang’s has offered an alternative without compromising product quality,” he says.