Panda Express sees orange chicken in valley's future

Public Record, The, Nov 07, 2006 by Bonafede, Bruce

Panda Express has its eyes on the Coachella Valley. The Asian quick-service restaurant chain, the most recognizable name among the brands operated by the Panda Restaurant Group, is looking to nearly double its footprint in the area. Already operating in seven locations, the company is actively working on opening five new stores.

"We think they can do a lot more. The valley is a strong market for Panda," said David Landsberg, vice president of real estate for the company's western division. While he said he preferred not to disclose the specific locations on the list, he said the company is looking all over the valley. "What drives our site decisions are demographics, accessibility, and visibility," he said.

He added that synergy with other retail operations increases the appeal of a location. "We like to have some synergy around us .... retail synergy," he said.

Current Panda Express stores stretch across the valley from Palm Springs to La Quinta. The company has locations at Sunrise and Ramon, at Date Palm and Ramon in Cathedral City, inside the Pavilions and in Monterey Marketplace in Rancho Mirage, at Highway III and Deep Canyon in Palm Desert, and at Washington Street and 42nd in La Quinta. All sprang from company's original location in the food court inside Westfield Mall in Palm Desert.

Rapid growth is not unusual for the Panda Express organization. The company operates in 37 states and is entering two new markets in 2007. "We have over 300 locations in California and want to double our footprint in the state," said Landsberg.

In late October, the 23 year-old company announced the opening in Rosemead of its 888th store. Company representatives claim there will be over 1,000 locations by next year. All are company-owned; there are no franchises. All told, the privately-owned Panda Restaurant Group parent company employs more than 13,000 people and had revenues of over $750 million in 2005.

According to Landsberg, the reason for this rate of growth for the Panda Express brand - other than the popularity of the restaurant's food including its signature orange chicken - is a flexible store concept. "We are not tied to a single choice"' he said, pointing out that there are stand-alone Panda Express restaurants as well as stores inside malls and supermarkets. The company does have a current preference, though: drivethru.

"Drive-thru is our preferred choice for type of store," he said. "Three years ago we had ten in the entire nation. Now we have 125."

Why a preference for drive-thru? "We're all about convenience," he said. "We consider ourselves 'fast casual'."

The company also considers itself valuedriven. "We use our mission statement and values all the time," said Kim Ellis, executive vice president of restaurant development, and formerly with Blockbuster. "What stands out with us is how we develop people. As of next year we will have had operations in Hawaii for twenty years. Some employees there have been with us the entire time," she said. She herself only recently joined the company because its value-driven culture appealed to her.

Landsberg pointed out that the company pays above minimum wage. "We want better people, and we want people who want to better themselves and have a career," he said.

Other than satisfying one's cravings for Chinese food, having a significant Panda presence in the community can have other benefits, said Thien Ho, manager of development planning for the company.

"Panda Cares is a community involvement program that we established in 1999. The focus of the program is to help disadvantaged children in our communities by providing and aiding local organizations with food and volunteer services. A committee of volunteers oversees and supports the Panda Cares program," she said.

She pointed out that in the first nine months of 2006 alone, the Panda Cares organization and its nearly 500 volunteers donated enough meals to feed more than 30,000 people. Included in the food donations were more than four tons of the company's signature orange chicken, eight tons of other entrees, five tons of fried or steamed rice, more than 13,000 spring or egg rolls, and 20,000 fortune cookies.

An unusual charitable program perhaps. But Landsberg put it into perspective. "This is what we do," he said. "We feed people."