P.F. Chang CEO sees U.S. economy softer

By Ben Klayman

CHICAGO (Reuters) - The U.S. economy is the weakest in 15 years and likely getting worse, the head of Asian-themed restaurant chain P.F. Chang's China Bistro Inc (PFCB.O: Quote, Profile, Research, Stock Buzz) said on Wednesday.

"The last time we went through a macro-environment like this was probably '91-'92," Chief Executive Richard Federico said at the Reuters Food Summit.

U.S. restaurant sales have been softening the past two years, and he doesn't see a change any time soon, he added.

"I wish I could tell you, sitting here today, that I see it going the other direction. I don't," Federico said. "It feels like this is going to be longer than what we saw in the early '90s."

Also, the U.S. economy appears to be weakening further.

"It feels like it," Federico said. "I'm not the economist in the family by any stretch of the imagination, but I read the same newspapers everybody else does."

Despite that, the Scottsdale, Arizona-based company is pushing ahead with expansion plans for its namesake restaurant, as well as its casual quick dining concept, Pei Wei Asian Diner. It has said it would open 17 P.F. Chang's and 25 Pei Wei stores this year in a bid to lower costs and improve results at existing outlets.

Federico said companies that thrive following economic slowdowns continue to invest and open new stores rather than cut costs as a way to prosper.  Continued...