P.F. Chang's
Asian-inspired casual dining restaurant chain.
PE-OWNED
Acquired by Centerbridge Partners2019-03-01
What Made It Great
Chef-inspired Asian cuisine in a stylish dining atmosphere.
What PE Will Likely Do
Portion sizes at P.F. Chang's restaurants will be reduced, while menu prices remain the same or increase slightly.
Some higher-cost ingredients in P.F. Chang's signature dishes will be replaced with cheaper, lower-quality alternatives, such as using frozen vegetables instead of fresh or substituting lower-grade proteins.
P.F. Chang's will likely reduce the variety of items on their menu, focusing on the most profitable and high-margin offerings.
Staffing levels in P.F. Chang's kitchens and dining rooms will be reduced, leading to slower service and potentially less attentive customer care.
Expected Timeline
“0 to 6 months months”
Minor changes to menu pricing and some ingredient substitutions begin.
“6 to 12 months months”
Noticeable portion size reductions across the menu, and more widespread use of frozen or lower-quality ingredients.
“12 to 24 months months”
Regular customers start to notice a significant decline in the quality and taste of P.F. Chang's signature dishes, as well as slower service and less attention from staff.
“24 to 36 months months”
More menu items are removed or changed, and store closures may start to accelerate as the brand's reputation becomes damaged.
“36+ months months”
Potential bankruptcy or sale of P.F. Chang's to another operator, as the brand struggles to maintain customer loyalty and profitability.
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Customers of P.F. Chang's should be aware of potential changes to the quality and portion sizes of their favorite menu items, and be prepared to voice their concerns if they notice a significant decline in the dining experience.
Consumers should consider monitoring P.F. Chang's social media and review sites for any early indications of changes to the brand's offerings or service levels.
If the quality of P.F. Chang's food and dining experience continues to deteriorate, customers may want to consider seeking out alternative Asian-inspired dining options in their area.
Alternatives
Publicly traded restaurant group
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