Pei Wei chain to relocate headquarters from Arizona to Irving

Pei Wei Asian Diner, the offshoot of P.F. Chang’s China Bistro, will leave its longtime headquarters in Scottsdale, Ariz., and establish a new home base in Las Colinas.

Armed with up to $500,000 in incentives from the state and $75,000 from the city of Irving, the fast-casual chain plans to create 100 jobs in North Texas over five years, beginning with moves later this year.

The move will cost the company more than $1.5 million, according to a release issued Wednesday by Gov. Greg Abbott. It is the fifth headquarters relocation that Abbott has secured with the help of the Texas Enterprise Fund.

Some specifics of the incentive package, including the time frame, are still being worked out, the state said.

The move east will help the Arizona-born chain, co-founded by Dallas restaurateur Mark Brezinski, forge its own identity.

“Part of this is not just a headquarters move, but it’s really an overall shift in our brand direction,” said John “J.” Hedrick, chief executive of Pei Wei. “We are separating operationally and geographically from our parent company.”

He said he expects most of the jobs, some with an average annual compensation package of $125,000, to be filled largely by North Texans.

“I expect the number to be no more than probably 10 people to relocate” from Arizona, he said.

The company, which operates more than 200 restaurants in 21 states, will move into about 14,000 square feet in the Las Colinas Highlands, a seven-story building near DFW Airport.

P.F. Chang’s gave up its ownership stake in Pei Wei in 2012 when the two were purchased by private equity firm Centerbridge Partners, a P.F. Chang’s spokesman said. Pei Wei had U.S. sales of $366 million last year, according to restaurant research firm Technomic.

Hedrick, 41, said the address change is one of several moves that will help the brand operate more independently.

“Now, a large number of people who work on the Pei Wei business also work on the P.F. Chang business,” he said. “As we move here, they will be two separate business units and employees will either be focused on P.F. Chang or Pei Wei.”

From North Texas, executives will be able to reach at least a third of the U.S. restaurants within a four-hour drive and all of the domestic restaurants within a four-hour direct flight from DFW Airport or Dallas Love Field, he said. Pei Wei also has 28 locations in North Texas.

By moving to Irving, the company gains an “exceptional ability to travel” along with “great access to talent” and “a very business-friendly environment,” Hedrick said.

“We find that the job market and the quality of applicant and the specialized talent that exists in this area is very high,” he said. “There are a large number of similar restaurant concepts and a large number of very qualified applicants” to fill the jobs.

This story was originally published August 23, 2017 at 5:08 PM with the headline "Pei Wei chain to relocate headquarters from Arizona to Irving."