General Mills keeps polishing China Coast, eyes expansion

Nation's Restaurant News, Jan 13, 1992 by Peter O. Keegan

ORLANDO, Fla. -- After 22 months of testing and retooling its China Coast dinner-house concept, General Mills Restaurants is getting ready to expand the test in preparation for a possible nationwide launch.

In hopes of adding a third concept to its successful Red Lobster and Olive Garden operations, the restaurant and packaged-goods conglomerate has made some fundamental changes in China Coast's menu and operations. It plans to continue fine-tuning the Oriental concept after it opens second and third units this year.

"They haven't released any figures on it yet, but they are very pleased with what they see," said Robert Cummins, an analyst with Wertheim Schroder in New York. "They will continue to make changes and make sure that everything is just right before they decide whether to expand it or pull the plug."

General Mills maintains that it has not yet decided to parlay China Coast into a chain of Oriental dinner houses. But president Mark Willes recently told the Associated Press that "so far the money mechanics look good" and that if the new units in the Orlando market and second market succeed, "then we'll roll."

"We can roll them fast when we move -- if we ever get to that decision," spokeswoman Anne Durning said. "it's not hard to find good sites. What we need to do now is perfect the concept."

Durning disclosed that the prototype unit, which opened in early 1990, exceeded its $2 million annual sales target.

China Coast's menu, which includes Mandarin, Szechuan and Cantonese selections, was overhauled six to eight times since the concept opened its doors. General Mills said it was responding to consumers' desires for spicier for.

"We have broadened our spice levels and now have a variety of categories," reported General Mills spokeswoman Anne Durning. "Instead of compromising, we have some hot things and some mild things."

In addition, the dim sum appetizer bar, with its exhibition-style cooking, has been scrapped, along with three American menu specialties. Durning said the dim sum idea was originally set up to feed patrons at the large bar area. But after bar traffic failed to materialize, much of the lounge area was converted to dining space.

General Mills also added a $4.99 all-you-can eat lunch buffet. Durning reports that sales have been brisk.

Meanwhile, the company is grappling with the problem of preparing quality Chinese in large quantities.

"With wok cooking, each dish has to be individually made," Durning explained. "The problem is how to make this efficient in a high-volume restaurant."

She disclosed that China Coast's kitchen equipment and back-of-the-house layout has been altered several times already.

The company has just secured real estate for a second test site, in West Orlando.

"it's a more residential and suburban-type area than the original unit on International Drive," said Durning, who added that a new prototype could be erected in the next six months.

The strategy, she noted, is to open a few China Coast restaurants in the Orlando area and then enter another market with a possible new prototype design to see what works best.

During said that the original unit sits in a busy part of Orlando where a thriving tourist trade provides a good cross-section for testing menu items. "The restaurant gets exposure to all walks of life, and because you are having people who only visit the unit once or twice, no one is confused by so many menu changes," she said.

The large number of mom-and-pop Chinese restaurants in the area has provided General Mills with a good idea how the concept would compete outside of Orlando, During added.

General Mills has taken its time in developing other concepts. The Olive Garden prototype opened in 1982 -- across the street from the China Coast test unit -- but was ot duplicated until it had been tested and modified for four years.

"In this complex and fast-changing world, we can't just hit the target; we've got to hit the bull's eye, and that takes a long time," Durning pointed out. "We are looking at several different options."

But she added that General Mils could move quickly once it decides to add a new concept to its stable.

"I can't think of another restuarant company that is better geared for rapid national expansion," Durning opined.

Having grown Red Lobster and Olive Garden, General Mills has already conducted a great deal of market research and site selection, she explained.

This is not the first time that General Mills has tried to enter the Oriental restaurant market, one of the industry's fastest-growing segments. In 1985 the company purchased the four-unit Leann Chin fastfood chain and sold it back to its original owner after new units failed to live up to expectations.