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Legal tests the waters: less surf, more turf
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Legal tests the waters: less surf, more turf
Seafood chain aims to diversify menu, attract new clientele to smaller venues
When Roger Berkowitz wanted to expand Legal Sea Foods, he started by firing some of his management staff. He hired new executives, brought back some former employees, and rebuilt a management team aimed at reinvigorating the 55-year-old company. More than 14 months later, the family-owned Boston restaurant empire no longer sees its future dependent on the sea. There is Legal's Test Kitchen -- one of which has opened at Logan International Airport -- serving a menu that is only 35 percent seafood and 65 percent other dishes, ranging from braised duck to mushroom ravioli. There also will be a Legal C-Bar and Grill, which will open in downtown Boston next year and feature a menu that is 75 percent seafood. Both represent a big departure for Legal Sea Foods, given that its namesake restaurants serve more than 90 percent seafood. 'Businesses do have a right to change," said Berkowitz, president of Legal Sea Foods. 'Just because something is working today is no indication that it is going to work tomorrow." Seafood has been the focus for his family since his father, George, opened a fish market in Cambridge in 1950. The Berkowitzes opened their first restaurant in 1968, and today the family has 30 locations from Burlington to Boca Raton, Fla. The Legal Sea Foods flagship restaurants won't change and seafood will remain a core ingredient at Legal, but Berkowitz said the company had to introduce new concepts to compete on a national level. 'I don't think there is a limited growth in the food industry," said Berkowitz. 'But seafood is perhaps the most challenging." Seafood historically has been a tough sell in the United States because consumers are concerned about the quality and freshness of fish. The industry also took a dive this year when a red tide algal bloom infected the region's shellfish beds, making clams, oysters, and mussels inedible for nearly two months. While the general dining category grew 9.5 percent between 2003 and 2004, the seafood segment lagged at 3.3 percent during the same period, according to Technomic, a Chicago food consulting firm. 'What we are seeing is that there are a few standout concepts, including the Rockfish Seafood Grill and McCormick and Schmick's, that are doing really well," said Tom Miner, principal at Technomic, referring to two national seafood chains. 'But there are also strong regional seafood chains and one of those is Legal's." Legal Sea Foods has increased its sales about 60 percent over the last five years and expects to post nearly $200 million in sales at the end of this year, Berkowitz said. But as the restaurant industry becomes more saturated, restaurateurs are faced with the challenge of separating themselves from their competition. Like Legal Sea Foods, more restaurants will start experimenting with other foods beyond their specialty. 'The challenge for Legal will be to provide items that are not as familiar, but at the same quality level they have for their seafood," said Miner. One reason: More restaurants are offering seafood, making Legal less of a destination. 'Oyster bars are becoming the sushi bars of the '90s," said Berkowitz, whose flagship restaurants long have had raw bars. To expand, Legal had to look for new foods and new formats. And to do that, Berkowitz realized he needed a new staff. Starting last year, Berkowitz began restructuring his management team. He brought in Mark Synnott, from Safeway grocery in Canada, as Legal's chief financial officer. For chief operating officer he hired Chip Wade, who came from Darden Restaurants, the owner of the Red Lobster and Olive Garden chains. Berkowitz also hired Ruthie Sonego, as director of training and development, to improve training of Legal's 3,600 employees, and Ken Chaisson, formerly of Reebok and Staples, as director of information technology, to modernize operations. 'The restaurant management system is a couple of generations old, so we need to replace it with new things like online reservations systems, kitchen monitoring systems, and management alert systems," said Chaisson. Berkowitz also brought back some ex-staffers, including John Olson, now the vice president of operations. Olson worked for Legal for 13 years before he left to work for steakhouse chain Landry's Restaurant Group. Berkowitz also kept Rich Vellante, Legal's executive chef. One of the team's first tasks was to hone a concept Berkowitz had been batting around: Legal's Test Kitchen. More casual than a traditional Legal Sea Food restaurant, the Test Kitchen marked the company's first foray into a nonseafood segment. Berkowitz wanted to test the concept at airports because travelers are always in a hurry -- and they're a good focus group. 'It's a discerning clientele, they are well-traveled, they have the money, and they will let you know immediately if something is going to fly or not," he said. The next project: Legal C-Bar and Grill -- as in 'C" for clams, cod, and cocktails -- an urban seafood bar that appeals to a late-20s and early-30s crowd. While its flagship Legal may be more appropriate for families and business meetings, the C-Bar will have more atmosphere ('seafood with a flair," says Wade) and serve up a wide array of spirits and other alcoholic drinks. 'We want to capture the folks right out of college who will remember our name, and as their income rises, they'll keep coming," said Wade. That target group 'can eat out three to four times a week, and that group we know wants exciting and vibrant places to hang out." Legal plans to open three to five Test Kitchens (including one more at Logan) and three to five C-Bars throughout New England over the next two to three years. In addition, the company is launching two more Legal flagship restaurants over the next two years. Despite the changes, Berkowitz remains steadfast that Legal will stay true to its roots: seafood. 'The one constant thing is the core fresh fish, and you can't compromise that, but you have to keep making it interesting for people," he said. 'If you're in business, there has to be forward momentum at all times. Like on a treadmill, you'd better be going forward because once you stop you fall off." Take a tour of Legal Sea Foods and watch the multimedia feature at www.boston.com/business. © Copyright 2005 Globe Newspaper Company. | ||
