REDESIGNED CAPTAIN D'S RESTAURANTS DELIVER UNEXPECTED STAFF-RETENTION BENEFITS (10/01)

Most marketers hate surprises, but don't suggest that to the marketing staff at Captain D's Seafood.

The Nashville-based owner, operator and franchiser of 564 seafood restaurants in 22 states recently introduced a new Restaurant design that better engages the minds, emotions and senses of its customers. Emulating the romance and casual ambiance of beach-side seafood shacks, the new design creates a relaxed, "stay awhile" atmosphere without sacrificing the consumer's desire for fresh food prepared quickly. It also solidly positions the chain as a more upscale, "fast-casual" dining destination.

As expected, the new décor has had a dramatic impact on the company's financial performance. Since the introduction of the new design, same-store sales at remodeled Captain D's units have outperformed other stores on an average of six percent and, in some cases, as much as 30 percent.

Although the step was intended as a way for the company to increase customer loyalty, Captain D's was surprised to learn that the changes it made, which also include contemporary background music and more comfortable staff uniforms, are encouraging its hourly employees to stay longer, too.

"Our turnover is down tremendously from where it was and is well below the industry average," says company President and COO Ron Walker. "In the past, we played elevator music and our employees wore khaki pants and golf shirts. Today, they wear blue jeans, tropical T-shirts and baseball caps, which is more relaxed and in keeping with the times. They're not embarrassed to walk down the street dressed for work."

A total of 42 units have been remodeled to date, with both company-owned and franchised restaurants benefiting from the changes. All future Franchise and company-owned Captain D's restaurants will feature the new restaurant prototype.

"The redesign is making Captain D's more popular as both a consumer-dining destination and as a franchise opportunity," says Captain D's vice president of franchise development, Darin Harris. "Based on the research I've seen from financial institutions, our new restaurant prototype is competitive with the best-performing restaurant franchises, which has increased the level of interest among multi-unit foodservice operators looking for new opportunities."

Multi-unit foodservice operators and other investors interested in learning more about Captain D's single- and multi-unit development opportunities may contact Captain D's Franchise Development Department at (800) 550-4877 or visit www.captainds.com.

About Captain D's
A pioneer and leader in the fast-casual dining segment, Captain D's restaurants provide premium-quality seafood at reasonable prices in a comfortable casual environment.

Fueled by the company's success over the past several years, Captain D's recently announced plans for the most aggressive expansion effort in its 32-year history. The expansion, which will significantly increase the number of both franchised and company- owned restaurants, will also result in approximately two-thirds of the company's restaurants being operated by franchisees, up from approximately one-third today.

Both new and existing markets for the company will be targeted, among them: Little Rock, Ark.; Atlanta; Charlotte, Greenville, Greensboro and Raleigh-Durham, N.C.; Charleston and Columbia, S.C.; Chattanooga, Knoxville and Memphis, Tenn.; Houston; Denver; Indianapolis; St. Louis; and all major Florida cities.

Headquartered in Nashville, Tenn., Captain D's owns, operates and Franchises 564 restaurants in 22 states. The first store was opened in Donelson, Tenn., in 1969 as Mr. D's. The company later changed its name to Captain D's and became Captain D's, Inc. in August 2000.