California Pizza Plans Pricier Items, Dims Lights

California Pizza Kitchen plans to add a line of pricier entrees and an assortment of alcoholic beverages in a bid for higher traffic and checks.

In a recent conference call with investors, CEO Fred Hipp said that CPK would build on a test last year of a $13.99 jambalaya pasta. The entree, one of CPK's highest-priced selections, is now the third most popular item on the menu, he said.

"We see an opportunity, if we can provide price-value, to establish a higher dinner-based check average," Hipp commented.

Despite its name, CPK generates only about one-third of its revenues from pizza sales. If the entree push takes off, that figure should drop further.

Hipp also noted that CPK is restaging its wine and drink menu "pretty radically" with the goal of boosting alcohol sales from the current level of 5.5% of total sales. No specific target was given.

"We think we can [increase alcohol sales] through innovations by really adding some very different products from what you'd see in most casual-dining restaurants," Hipp says.