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Less Food, More Customers At T.G.I. Friday's

Following the implementation of its "Right Portion, Right Price" menu four months ago, the number of customers has increased at T.G.I. Friday's by 1.4%, compared with the same period a year earlier. For the industry, guest counts were down by 2.8%.

Other restaurant chains have offered smaller portions, but they have not succeeded because the offerings were often relegated to a "lighter fare" section of the menu. Or they were not much cheaper than full-size entrees. What makes Friday's smaller portions different is that they are not necessarily healthy (ribs with fries is one "right size" entree), and they are significantly cheaper than their full-size counterparts.

Overall, sales were down 0.6% compared with the previous year, while the industry's sales declined by 0.9%. The average check dropped by 4% in the first eight weeks or so, far more than expected. But in the last five weeks, customer visits have continued to increase--they are up 4%, compared with the same period a year ago. The average check also rebounded and was only down 1% from a year earlier.

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