California Pizza Kitchen Inc. (CPKI), one of the leading casual dining restaurant chains, recently announced that it has opened a 6,400 square feet restaurant, which accommodates a seating arrangement for 210 guests in Jardines del Pedregal, Mexico. This is California Pizza Kitchen’s ninth restaurant in Mexico, which the company opened with its franchise partner Grupo Calpik, S.A.P.I. de C.V.
The new restaurant is located in the Terraza Pedregal business center. Given its strategic location, we believe this new restaurant is on right track to grow in the coming days. Apart from its popular offering of pizzas, salads, soups and sandwiches, this restaurant will offer an extensive beverage menu.
The other 8 restaurants of the company in Mexico are located in Guadalajara, Cancun, Lomas Verdes, Bosques de Las Lomas, Polanco District, Santa Fe, Coyoacan and Satelite.
California Pizza Kitchen currently owns and operates 211 restaurants and franchises 57 restaurants. It also plans to open 3 company-owned full service restaurants in the fourth quarter of fiscal 2010 in the U.S. In addition, the company’s franchisees will likely open 2 international full-service restaurants within the same time frame.
The company is also accelerating its presence internationally, particularly in the Asia Pacific region due to its growing economy. In China, the company has recently opened its first company-owned restaurant as well as the first international office to work with franchisees and facilitate the company’s growth. In India, California Pizza Kitchen has already opened its first restaurant and plans to open 15 more units in the next 10 years.
We believe that the opening of new restaurants is indicative of the company’s efforts to gain market share in the gradually reviving restaurant industry, which was badly hit by the recent economic downturn.
Most of the company’s peers such as BJ’s Restaurants Inc. (BJRI), Red Robin Gourmet Burgers Inc. (RRGB) and Buffalo Wild Wings Inc. (BWLD) have been on a modest expansion mode in fiscal 2010. We believe, going forward, this will intensify competition for California Pizza Kitchen.
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