SCOTTSDALE, AZ-PF Chang's China Bistro will reduce the number of Pei Wei Asian Diners that it will open next year, a response to the tough economic environment that is vexing retailers throughout the country. The Chang's chain still plans 10 more Bistros and seven more of its new Pei Wei restaurants by the end of this year, but the company will open fewer restaurants next year than originally planned because it sees a tougher road ahead than it did when it began to expand the two concepts. Like many if not most retailers in their conference calls these days, P.F. Chang's officials on Wednesday cited difficult economic conditions that are affecting their results.

“From a macroeconomic perspective, things have not improved, and if anything it appears that these challenges will be with us longer than we originally thought,” PF Chang's CEO Rick Federico said. The PF Chang's chief said that the chain will reduce the number of new Pei Wei Asian Diners that it opens next year to 25, rather than the 37 mentioned in the company's second-quarter conference call.

“Given the challenge of improving margins, we believe that trimming back new unit growth will help us to achieve our objectives and improve the concept's profitability in 2008 and beyond,” Federico said of the cutback in the Pei Wei expansion. He called the move “the best for the short term” and said that the company has already signed leases for the 25 new Pei Wei locations that will open in 2008.