Many casual-dining chains have leaned into value bundles to appeal to inflation-conscious diners lately. BJ’s is no exception, and its Pizookie Meal Deal is proving to be a real winner.
The deal was introduced in September and includes an entree, a side, and the chain’s signature Pizookie—a warm cookie topped with ice cream—for $13. Available on weekdays for a limited time, the value meal helped lift same-store sales by 5.5 percent in Q4, marking BJ’s strongest quarterly performance in years.
Interim CEO Brad Richmond noted that each month’s performance was “meaningfully above” Black Box Intelligence’s industry index, with the brand outpacing competitors by 3.7 percentage points in same-store sales and 6.8 percentage points in traffic.
The success was largely fueled by the Pizookie Meal Deal and increased marketing investments, which built awareness around both the promotion and the BJ’s brand overall. The strategy has had a ripple effect—weekday deal-seekers came in with other guests who ordered from the broader menu, while heightened brand awareness boosted weekend traffic even when the deal wasn’t available.
:
BJ’s Rethinks its Promotional Strategy
BJ’s Upgraded Service Model is Already Having an Impact
BJ’s is reevaluating its broader value strategy and promotional approach off the back of the meal deal’s success.
“I’m a big believer in the value equation, which is the experience that we’re delivering—the food experience and the service experience—over the price,” president and chief concept officer Lyle Tick said during the company’s Q4 earnings call last week. “What we need to do is continue to have things like the Pizookie Meal Deal for those guests that are looking for everyday value that may be more driven by price, and make sure that our premium, handcrafted trade-ups are delivering the way they should deliver so that we have both ends of that guest being satisfied with value as they see it.”
BJ’s is also making strides in margin expansion. Restaurant-level margins in Q4 reached 15.4 percent, up 100 basis points year-over-year. The company reported restaurant-level operating profit of $52.9 million, a 14 percent increase from the prior year, setting a record for Q4 profitability. Adjusted EBITDA for the quarter climbed to $33.1 million, up 21 percent, with an adjusted EBITDA margin of 9.6 percent—an improvement of 120 basis points.
On the operational side, Tick emphasized that BJ’s is laying the groundwork for initiatives that enhance efficiency. One example is the company’s AI-powered forecasting model, which is helping general managers optimize food preparation and labor scheduling.
BJ’s has also worked to address inefficiencies related to comped food and beverages, which Tick said often create operational friction and slow down service. A major contributor was errors in how items were entered into the POS system or prepared in the kitchen. The company has started making targeted adjustments to fix this. A new process for ringing in margaritas, for example, led to a 20 percent reduction in comped drinks and fewer mistakes making their way to guests. Additionally, BJ’s updated its kitchen display system with packaging and cooking guidance specific to takeout and delivery orders, which improved accuracy scores by roughly 10 percent.
“While both examples benefited margins, their bigger impacts were made by creating better team and guest experiences,” Tick said, adding that BJ’s operations and technology teams are continuing to work on mapping additional simplification opportunities.
BJ’s is also taking a more proactive approach to facilities management. The company implemented QR codes on critical kitchen equipment, allowing it to track repairs, manage warranties, and use predictive analytics to optimize replacement cycles. Additionally, it recently launched preventative maintenance programs for major kitchen and HVAC systems. The result so far has been fewer equipment failures, reduced repair costs, and a smoother experience for restaurant teams.
BJ’s recent sales growth and margin expansion come at a moment of transition for the brand after a pair of activist investors started pushing for changes early last year. Former CEO Greg Levin stepped down in August and was replaced by interim CEO Brad Richmond, a Darden Restaurants veteran who had previously joined BJ’s board at the activists’ bidding. Tick joined soon after. And earlier this year, BJ’s reached a cooperation agreement with Act III Holdings, the investment firm led by former Panera Bread CEO Ron Shaich, giving it an advisory role in the company’s direction.
Tick laid out a fresh strategy for BJ’s for the first time during last week’s earnings call, outlining four areas of focus going forward.
The top priority is enhancing the employee experience to ensure more consistent hospitality. In the short to medium term, the company is focusing on two areas: simplification and training.
On the simplification side, BJ’s is addressing task saturation by identifying and eliminating or automating non-value-adding tasks that hinder efficiency. Additionally, it is streamlining processes and systems, including POS and kitchen display functions, such as how items are rung in and displayed in the kitchen—an effort already yielding positive results.
For training, the focus is on balancing digital and hands-on learning.
“During and since COVID, training for many has gone almost all digital,” Tick said. “Our team members have told us that more shoulder-to-shoulder training is important.”
To address this, BJ’s recently launched a revamped team member training program that streamlines digital modules and accelerates hands-on learning. A similar overhaul for manager training is coming soon.
“The feedback has been very positive,” Tick said. “What I’m hearing from our managers is they’re seeing that it’s helping in hiring and retention in the first 90 days because our new team members get buddied up from the beginning and more quickly feel part of our community and are executing better for our guests.”
BJ’s second priority is enhancing its food and beverage offerings. While pizza, Pizookies, and the craft beer program remain core pillars of brand equity, the company sees wings, steaks, and slow roasts as emerging areas of strength.
“It’s clear from our research and guest feedback that we have opportunities to improve consumer satisfaction on some of these core platforms,” Tick said. “This is where a great deal of our focus is going in the short term.”
BJ’s also is looking for more opportunities to streamline its menu, building on last year’s effort that trimmed about 10 percent of offerings. Tick noted that removing certain items will not only simplify operations but also open the door for future menu innovations that enhance core categories.
The third strategic pillar focuses on delivering “wow” hospitality, both on- and off-premises. For on-premises, the priority is ensuring the right staffing levels and positioning at the right times. As BJ’s refines its AI-driven forecasting and labor scheduling, it sees opportunities to improve efficiency, particularly leading up to and during peak periods.
For off-premises, the focus is on streamlining the guest experience and eliminating friction points.
“We have a clear opportunity to optimize that end-to-end journey and make things easier for guests and team members alike, all the way from how we merchandise our items and capture that demand to how we ultimately fulfill and convert that demand,” Tick said.
The fourth area of focus is refining the restaurant atmosphere. That priority will see BJ’s remodel up to 30 additional locations this year, continuing a refresh initiative that has already proven successful.
On the development front, BJ’s is scaling back new openings in the near term. The company has reassessed its site selection criteria and adjusted its strategy to focus more on growing in established markets. As a result, it has canceled some of its previously planned locations. Only one new restaurant is expected to open this year, following three new units in 2024, with expansion expected to ramp up again in 2026.
“I’m now five months into my role, and I’m very encouraged by the progress we’re making driving sales and traffic, as well as identifying opportunities to operate more efficiently and simply,” Tick said. “While we’re at the beginning of the journey and there is lots of work ahead, we’re getting clear on our core equities where we can drive differentiation while also putting in place the right initiatives to drive sustainable and profitable growth. We’re at an exciting juncture for the BJ’s brand, building on positive sales and margin performance in Q4, while also sharpening our focus for the future.”
