P.F. Chang's & Unilever Join Up

Recently, P.F. Chang’s China Bistro (PFCB - Snapshot Report), known for its traditional Chinese and pan-Asian cuisine, and Unilever (UL - Analyst Report), one of the largest manufacturers of hygiene and personal care products, have entered into a partnership.

Unilever and P.F. Chang’s China Bistro will jointly develop and launch frozen Asian entrées. However, it has not yet been decided when the new products will be launched. The partnership will operate in the United States under P.F. Chang’s brand name.
 
P.F. Chang’s China Bistro was looking for a partner who could provide new avenues to reach out to more consumers and increase its brand recognition. Unilever, who in 2005 had launched a line of frozen Italian entrées, decided to try its hand at the Asian counterpart this time. The terms and conditions of the agreement were not disclosed.
 
P.F. Chang’s China Bistro operates in the Casual Dining segment, which is facing the brunt of the recession with falling same-store sales and declining traffic. Consumers with lower disposable income are either shifting to quick service restaurants because of their lower priced menu or are dining at home.

Along with P.F. Chang’s China Bistro, other casual dining operators such as Cosi Inc. (COSI - Analyst Report), California Pizza Kitchen (CPKI - Analyst Report) and Famous Dave’s of America (DAVE - Snapshot Report) are facing the same fate.