Raw Data Report: Famous Dave's, Applebee's

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Minimal Wait Times At Famous Dave's (DAVE); Menu Needs An Overhaul

Famous Dave's of America, Inc., the restaurant known for its legendary pit barbeque, was polled by Tickermine researchers this month. This was after the company announced lower first quarter earnings thanks to poor spring weather and higher food costs. Our researchers asked what was the average wait time for customers, how much a party of two will spend, what is the most popular menu item, and how long this item has been around?

22 locations were consulted for the poll. Customers aren't waiting that long, our poll says, with eight respondents or 36% reporting no wait at all. Another eight respondents or 36% reported waits less than 10 minutes. Four respondents or 18% said customers can wait between 15 to 20 minutes and only two respondents or 9% reported waits from 30 to 35 minutes. The majority, 10 respondents or 45%, said a party of two will spend $35-$45, per meal. Eight respondents or 36% reported $20 -$30 as the norm, and only four respondents or 18%, said a party of two will spend over $50. Ribs sell best (10 respondents or 45%), followed by the All-American BBQ Feast (four respondents or 18%), the Texas Beef Brisket Sandwich (three respondents or 14%), the Barbeque Chicken (two respondents or 9%), and the following were each cited once or by 5% of those polled: the Ultimate BBQ Burger, Sweetwater Catfish, the Georgia Chopped Pork and the Ultimate BBQ Burger. The restaurant might need a menu overhaul however. All 22 respondents or 100% said these menu items had been around forever.

80% of Applebee's Restaurants Say Business is Same or Down From Last Month

Applebee's, the family restaurant owned by International House of Pancakes (IHP),was surveyed this month. 25 locations around the country were consulted about how long their customers wait, the average check for a party of two, the most popular menu items and whether business was up or down compared with last month.

13 respondents or 52% said the average customer wait was between five to 15 minutes long. Another six respondents or 24% of those polled said their customers wait as long as 20 to 30 minutes. Five respondents or 20% said there was no wait, and one respondent or 4% said their customers wait up to 40 minutes for a table. Most respondents, specifically 16 people or 64% of those polled, said a party of two spends a lowly $20-$30 per meal. Eight respondents or 32% said a check for two runs $35-$45 and only one respondent or 4% said it was more like $50. The Pick N Pair Lunch Combos were the most popular menu item according to the survey (five respondents or 25%), followed by the Ultimate Trio (four respondents or 16%) and hamburgers (three respondents or 15%).

The following each were mentioned by two people or 10% of those surveyed: Country Fried chicken, Mini Bacon Cheeseburgers, Oriental Chicken Salad and Steaks. And the following were each mentioned once or by 4%: Double Crunch shrimp, Fiesta Lime chicken, Orange Chicken, Riblets and Smothered Grilled Chicken. None of this however inspires more customers than normal. Five respondents or 20% said they saw more customers this month compared to last while 20 respondent or 80% said customers were less than or the same as a month ago.

Comments

[Marcus Aurelius]

I am a Famous Dave's fan and am looking for a buy opportunity on the company. I eat there on a regular basis probably 3-4 times per year. Of all the chain BBQ joints I enjoy Famous Dave's ribs the most. We have a place called Tony Roma's (TRO) in WI that has ribs and a Texas Roadhouse (TR) nearby and I thought TR's ribs were dry and TRO did not make much of an impression on myself. TRO aims to be more than barbecue and IMO they end up falling short both in terms of the food & atmosphere. I have had ribs at Smokey Bones and again nothing special.

About six years ago I had a buy order on DAVE for $6.00/share and got off my plan and lost out on the buy (I had planned to sell at about $9.00/share) the stock hit my predicted point, but I am not a big player so most likely my order was way back in line and the players who engage in 10,000+ orders were served up first. Had I stuck to my plan I would have made some quick money on the transaction, because that was around the time DAVE started to head up fairly quickly.

Can the menu deal with some freshening? I am not so certain about that, I don't go to Famous Dave's for fresh and exciting food, in fact, if Famous Dave's only had one item on the menu (their St. Louis ribs) I would still be going there.

Wait times, the last time I was there I wish it was longer! My brother and I were there last Saturday (June 21, 2008) and seated immediately, but we arrived on the late side (after 7:30 pm). My brother and I were there, ordered a drink and then I had another (they messed up and mixed my gin and tonic (GnT) up in a small glass so they very honestly & graciously let me know I had another coming) and before the second GnT was complete the meal was served, typically I have a glass of wine with my dinner but I suppose it was for the best. Point being, the meal was brought out quick, again it was past normal eating hours.

This stock has not been in this area since October of '04 & in July of '07 it was in the $20.00 area.

What can the place do to improve? More atmospherics than anything. I detest the music they play and since most of the company I dine with detests cigarette smoke perhaps they can get rid of smoking entirely in their restaurants. It would have been nice to sit at the bar the other night. I used to like their beans a lot, but I have since come upon a recipe that puts their beans to shame.

Disclosure: currently just a fan of Famous Dave's.