MCALISTER’S DELI UNVEILS RESTAURANT REDESIGN TO CUSTOMERS

(Ridgeland, Mississippi) – At the beginning of July, McAlister’s Deli unveiled a fresh, new interior and exterior redesign of one of its original restaurants in Ridgeland, Miss., that Chief Development and Administrative Officer Patrick Walls said represents an exciting “evolution” for the franchisor of 201 fast-casual restaurants.

The redesign is expected to be incorporated into the construction of new McAlister’s Deli restaurants beginning in 2007, when the chain is also expected to begin converting its existing locations to the new design, a process that is expected to take three to five years.

Besides the 160-seat, company-owned restaurant in Ridgeland – home of McAlister’s Deli corporate headquarters – one additional company-operated restaurant in Madison, Miss., and two to three franchised restaurants in locations yet to be determined, are expected to adopt the new design in 2006.

The redesign incorporates several exterior modifications and almost a complete revamping of the restaurant’s interior spaces. Except for a minor exterior revision in 1999, the changes represent the chain’s first major redesign since its first restaurant opened in 1989. The conversion of the Ridgeland, Miss., restaurant took a little more than two weeks.

“We are past the 200-restaurant mark and we felt it was time to introduce the next generation of design for McAlister’s Deli,” Walls said. “We feel we have updated McAlister’s Deli to make it more comfortable and contemporary. We believe people will find it to be a very warm and inviting space.”

McAlister’s Deli enlisted Louis & Partners Design, a Bath, Ohio firm whose restaurant design clients include such well-known chains as Bob Evans, Carl’s Jr., Sizzler and IHOP.

“Our greatest challenge was to not alienate existing guests, encourage them to visit more often and at the same time appeal to new customers,” said Chris Nonno, lead designer on the McAlister’s redesign and Director of Design at Louis & Partners Design. “We accomplished this by understanding the current brand equities that existed and built upon them.”

New elements of the exterior redesign include:

•Checkerboard awnings and antique light fixtures have replaced the plaid awnings and red gooseneck lamps introduced in 1999. Black shutters have been added to the windows and “DELI” within the McAlister’s logo was modified to have a flowing, ribbon-type look.

Interior modifications are numerous:

•Wood flooring was installed in the dining area and the familiar black and white checkerboard flooring in the main entryway and front of the restaurant was replaced with tile featuring the same look, but with more muted tones.
•Customers now place their orders at a brick counter with a black Corian® countertop, with nearby walls featuring new olive-color tiles or faux bricks.
•An olive-green color scheme with light accents was introduced and beadboard throughout the restaurant now has lighter tones. Crown molding was also added.
•Booth seating was added for the first time and the newly redesigned restaurants will feature locally inspired art prints on the walls.
•Chairs, table bases, light fixtures and ceiling fans were replaced.
McAlister’s welcoming atmosphere has long been recognized as the perfect place for business meetings or families out to lunch or dinner. Walls said the company did not want to stray from that ideal.

“We didn’t want to change for the sake of change. We wanted this to represent an evolution for McAlister’s Deli,” Walls said. “We wanted to stay true to the brand identity that we have created.”

With restaurants in 19 states, Walls said McAlister’s Deli is expected to exceed $260 million in systemwide revenue in 2006. The chain has 179 franchised locations and 22 corporate-owned restaurants.

Because the Ridgeland restaurant is adjacent to McAlister’s Deli corporate headquarters, Walls said company executives would be able to gauge customer feedback and sales results and make any revisions to the new design before it is rolled out chainwide in 2007.

“We want it to be very cost-effective,” Walls said of the redesign. “Our goal is that this will not be any more expensive to build-out than an existing McAlister’s Deli. So far, it looks like we will have achieved that goal.”

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About McAlister’s Deli
McAlister’s Deli is quick/casual restaurant chain featuring efficient counter ordering, attentive table service, high-quality deli-style foods (sandwiches, spuds, salads) and great price value. In 2005 sales exceeded $207 million and with the company's strong expansion strategy in place, sales for 2006 are estimated to surpass $260 million. Currently, McAlister’s Deli has over 200 restaurants operating in the United States.

Currently operating in Illinois, Virginia, Louisiana, Texas, Arkansas, Missouri, Mississippi, Alabama, Tennessee, Florida, Georgia, Kentucky, Oklahoma, Indiana, Michigan, Ohio, North Carolina and South Carolina, McAlister's plans expansion into Nebraska, Iowa, New Mexico, Kansas and possibly other states, by the close of 2006.