Deli concepts winning in Mississippi's casino-driven economy

By Jack Hayes

COLUMBUS, Miss. (July 5) - Mississippi, already home to one of the region's hottest fast-casual chains, 133-unit McAlister's Deli , now is the launch pad for Sweet Peppers Deli , a six-unit operation that landed in Tennessee two months ago and is aiming for Arkansas by year-end.

The new concept's growth is fueled by a strengthening statewide economy whose momentum comes from casino-driven tourism as well as from industrial expansion, according to Mississippi Hospitality & Restaurant Association executive director Mike Cashion.

The Sweet Peppers Deli chain upgraded its fast-casual concept, and is testing plateware, flatware and limited table service.

"We went through a couple of flat to negative growth years, but the restaurant business in Mississippi is back now," Cashion said. "We're up 4 percent overall this year, and some segments like fast casual are doing much better. I'm hearing nothing but positive reports about McAlister's and Sweet Peppers."

Cashion estimated that the casino industry drives significant restaurant business. He said there are nearly 6,000 restaurants among the state's approximately 8,000 food service establishments of all types.

Created in 1997 by McAlister's Deli co-founder and former partner Robin Fant and local casual-dining veterans Bernard, John and Myrrl Bean, Columbus-based Sweet Peppers is a sandwich deli "hybrid" that integrates more full-service features than typically are found in the sandwich sector.

"We knew we had a great fast-casual concept, but in 2002 we asked two marketing consultants to confirm our vision and help us fine-tune the Sweet Peppers operation," Bernard Bean said. "So we designed enhancements for the menu, adding panini and wrap sandwiches."

Bean said the Sweet Peppers group also began testing plateware in place of food baskets. Cashiers at the order counters, meanwhile, began suggesting desserts or cookies to guests, who also were encouraged to place dessert orders later with servers who greeted them in the dining room. Servers place flatware and napkins and then check in with tables until guests finish. They cover from eight and 14 tables each, depending on the traffic.

"Because our background is full service, we didn't find it hard to incorporate these changes," Bean explained. "Customers rightly perceive they are getting a lot for their money."

The Sweet Peppers system now boasts four 4,000-square-foot strip center units in Memphis, Tenn., and Columbus, Hattiesburg and Starkville, Miss., plus one 5,000-square-foot freestanding site and one "express" food court location in Tupelo, Miss.

According to Bean, the four company-owned Sweet Peppers are averaging $1.8 million in annual sales with a $7-per-person check average. He said the food court unit is a potential secondary format option for many markets.

The Bean family entered the upscale-casual segment in Columbus in 1982 with a theme concept called Harvey's. The group now operates two additional Harvey's, in Starkville and Tupelo, as well as a fine-dining concept called Park Heights in Columbus and two mainstream casual restaurants - Jackson Square Grill in Columbus and Cotton District Grill in Starkville.

Partner Robin Fant, who evolved the fast-casual Bulldog Deli concept after acquiring it in 1984, went on to partner in the startup of Jackson, Miss.-based McAlister's Deli but later separated from that chain. Bulldog Deli eventually became the prototype for Sweet Peppers.

"Next year we expect to open a unit every other month, and by 2006 we'll reach the one-a-month pace," Bean predicted. "In effect, that means we'll be doubling our size in each of the next two years - to 12 restaurants in 2005 and 24 units in 2006."

McAlister's Deli, meanwhile, which passed the 100-unit mark at the end of 2002, envisions the current year ending with close to 150 restaurants in its chain, according to chief development officer Patrick Walls. Now in 17 states, the system has 23 locations across Mississippi.

"The economy is very good here now," Walls said. "A new Nissan plant opened north of Jackson a year ago, and a lot of suppliers have moved in since. Also, the casinos are still influencing our economic health. That industry is in full bloom."

Craig Ray, director of Mississippi's tourism division, confirmed that the state's base of 29 casinos, operating mainly on the Gulf Coast and in Tunica County on the Mississippi River south of Memphis, is continuing to grow.

Ray said three new casino projects either are under construction or are nearing development. The first, a Hard Rock venture, is targeting the Gulf Coast; the second and third are set for Natchez and Tunica - the latter, a $900 million project boasting a 18-hole indoor golf course.

The majority of Mississippi's gaming tourists are day or weekend visitors, however, who travel by automobile, restaurant association leader Cashion explained.

According to Ray, there were "33 million visitors to the state last year, and the estimate is that 70 percent to 75 percent of them were traveling to the casinos. But we want those gaming tourists to stop locally, see the towns, take in the sights and eat at the restaurants."

On a related front, Mississippi's state and local convention and visitors bureaus are looking intently at the golf and outdoor-recreation industries, according to Cashion.

"We are rapidly becoming a destination for the golfing crowd and will be drawing a lot of business from Canada," he said.

Ray said 100 of Mississippi's 142 existing golf courses - some ranked among the nation's best - are open to the public, and greens fees statewide are 30 percent to 40 percent less than what golfers pay in Florida or South Carolina.
CORPORATE OFFICES: P.O. BOX 1368 • COLUMBUS, MS 39703
PHONE: 662.327.6982 • FAX: 662.327.1672 •

BACK TO TOP
COMMITMENT
HISTORYIN THE NEWS
WORK WITH USLINKS