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Restaurant Design: Affordable Luxury

Mazzio's new restaurant concept, Oliveto, offers customers budget-friendly dining in an upscale, upbeat atmosphere.

By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 11/1/2008

The exterior features lime-green panels that glow under spotlights at night.
With Oliveto, its new full-service Italian bistro, Mazzio's used current economics to build a restaurant that is fun, affordable and easy to use.

“We built this concept with commodities in mind—they're not going down—and building costs are up 25 percent since Katrina,” says Greg Lippert, president and CEO of Tulsa, Okla.-based Mazzio's Corporation, which owns 170-unit Mazzio's Italian Eatery, a casual-dining pizza and pasta concept. “We can develop it based on the economics of the industry today, not what was true six years ago.”

The prototype, which opened in August in Tulsa, is 4,000 square feet with 130 seats. The kitchen is compact; chefs get to one station from another by turning, not walking. As a result, ticket times are averaging eight minutes at lunch—a time comparable to fast-casual service. The interior is attractive, yet a keen eye would detect value touches in the stained-concrete floor, the absence of pretty-but-useless decorative items, and the simple lighting fixtures.

But that doesn't mean Oliveto is devoid of luxury. Details abound, from the custom-made, stainless-steel olive branches that serve as exterior door handles to the granite-topped bar and communal tables. Decorative items are useful in that they underscore the restaurant's name. An array of color photos of olives and olive branches adorns one wall, and a red, oversize Italian ceramic vase, stuffed with olive branches, decorates the hostess stand.

A Frank-Free Zone

1. Oliveto's “wall of wine” doubles as a marketing tool, and a successful one: Beverage alcohol sales are 25 percent of sales on weekends.

2. Booths are surrounded by a tall back, creating a semiprivate dining area. A grape-colored soffit hanging above it provides an extra bit of visual separation.
Mazzio's had a precise model and customer in mind when it began planning Oliveto in 2006. In addition to rising building and commodities costs, slumping casual-dining sales and what Mazzio's perceived as demand for more flavorful menu items at affordable prices were the main forces behind the concept. “We wanted Oliveto to reflect those new demands,” Lippert says.

The company also took note of greater interest in wine and specialty beverages by empty nesters and young singles, both of which “have time to enjoy a meal in a comfortable, contemporary 'cool' environment,” he says.

Mazzio's enlisted longtime design partner Kathy Diamond-Ulepic of Kathy Diamond Design Associates in Scottsdale, Ariz., to create a logo and interior identity. Her approach was contemporary, European and Italian—no “ristorante” details such as red booths or a Frank Sinatra soundtrack.

One Big Space

The prototype is an inline location, in a former Safeway grocery store that was converted to a small shopping center. The area pulls both business and residential customers; household income in the area is $80,000, a good fit for the concept, Lippert says.

Using the raw space, Diamond-Ulepic designed a dining room that is one large room; there's no division between the bar and dining area. The room has two focal points. One is the bar, which has a “wall of wine” flanked by four high-definition televisions at the back. The wine wall sends a message: “We sell lots of different wines, and affordable wines,” Lippert says. Customers apparently are getting the message: Alcohol sales are 25 percent of total sales on weekends and 8 to 15 percent on weekdays, much higher than Lippert expected.

3. Because the dining room is one large expanse, almost every seat gets a view of the display kitchen. That access adds a busy, energetic vibe to the atmosphere.
The other focal point is an exposition kitchen, complete with a woodburning oven that produces 40 percent of the menu. Flanking the kitchen is a granite counter with eight seats, where customers can dine and watch the kitchen in action.

Together, “the bar and open kitchen give you the feeling that you're in a contemporary bistro, not sequestered away from the kitchen and bar,” Lippert says.

Functional Seating

The dining room is a collection of two-tops and four-tops, plus two granite-topped communal tables. The community tables, for single diners or couples, are “very popular,” Lippert says.

Diamond-Ulepic custom-designed two four-seat booths with super-high backs. The booths are cordoned off from the dining room with a low dividing wall, creating a semiprivate area. A plum-colored ceiling fixture suspended above the booths “increases the intimacy level” of the booth area, says Diamond-Ulepic.

As an accent color, plum joins lime green, which appears in small tiles covering the exposition kitchen counter, booth and seat coverings, and pendant lights as well. The exterior logo is wrought in plum and surrounded by green metal awnings, which are uplit at night.

4. Decorative touches are limited to brand-enhancing items like a vase filled with olive branches.
A Nice Buzz

Lippert says one of the most important features of Oliveto is one customers can't see, and that's its acoustic quality. Diamond-Ulepic sourced a high-quality acoustic tile for the ceiling. It, and enough wood and upholstered surfaces, creates an ambience that's upbeat but not conversation-crushing. “You can totally hear your conversation, but not the people at the next table,” she says. Wood-framed oblong mirrors, which reflect images and light, also liven the atmosphere.

Six weeks after opening, the restaurant's performance was exceeding expectations, Lippert says, though he won't give specifics. Customers were following menu cues, ordering wine and starters from the list of low-priced “wow” appetizers such as bruschetta served in a martini glass for $5.75. Lunch, which begins at 10:30 a.m., accounts for 35 percent of sales, a figure Lippert is happy with.

5. The bar reflects a contemporary feel with granite countertops and seats covered in olive-green faux leather.
Oliveto has systems in place for catering and curbside takeout, but those services didn't launch immediately. “We didn't want to stress the kitchen too much,” Lippert says. “We wanted to make sure dine-in customers had the best experience possible.”

Two more locations are scheduled to open: a freestanding unit in Waco, Texas, in December and an endcap in Tyler, Texas, in February. That way, Mazzio's will have three models to evaluate before fully rolling out the concept. Lippert won't disclose long-term plans for Oliveto.

By design, the buildout cost is just under $1 million. Mazzio's plans little in the way of value engineering. The 35-item menu, however, may undergo a slight makeover. “We would like it to be smaller,” Lippert says. “We have a commitment to chalkboard specials, to acting like a one-store operation, not a chain. We want to keep the guest guessing what we'll have next,” he says.

6. Granite-topped communal tables are popular with singles and couples. 7. The designer balanced budget decisions such as the stained-concrete floor with upscale touches such as the granite bar .


8. Lunch, which begins at 10:30 a.m., accounts for 35 percent of total sales; lunch at the bar is a popular option for business customers. 9. The right blend of acoustic ceiling tiles and upholstered surfaces creates anoice level that's energetic but not earsplitting.
 

 

Snapshot

Concept Oliveto Italian Bistro

Ownership Mazzio's Corporation, Tulsa, Okla.

Location Tulsa, Okla.

Opening Day Aug. 19, 2008

Seats 130

Area 4,000 square feet

Per-Person Average $13

Unit Volume $2.8 million*

Expansion Plans 2 this year

*Chain Leader estimate

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