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WHITE CASTLE T-shirts are hot right now. Department store chain, LORD & TAYLOR, has T-shirts with four designs featuring White Castle logo and slogans. Apparel chains, HOT TOPIC, BUCKLE, and URBAN OUTFITTERS also sell the clothing. Analysts describe the 83-year old White Castle appeal as catchy. BURGER KING has named GREG BRRENNEMAN, a noted turnaround expert, as chief executive, replacing BRAD BLUM, who left earlier this month. Brenneman, Burger King's 10th chief executive in the last 15 years, will be asked to expedite the fast-food chain's long-awaited recovery. "The company has many exciting initiatives underway," Brenneman said. "We will work together to quickly build on our current momentum by improving our products and customer service." FRESH CHOICE announced that it is seeking a fresh start by filing for Ch. 11 bankruptcy protection. The operator of 46 soup-and-salad restaurants took the immediate step of shuttering 10 restaurants in Southern California, Texas, and Washington State, it said. The company also reorganized its corporate structure, promoting TIM O'SHEA to the new post of president/COO. CEO JEFF JEFFERSON will focus on the court filing. According to Jefferson in a recent statement, "We firmly believe that upon emerging from Chapter 11, Fresh Choice will be stronger in terms of cash flow and operating flexibility." Partnering with THE EQUITY GROUP of Dallas, MARWIN MANAGEMENT LLC acquired from two other franchisees 15 CICI'S PIZZA units in Houston. Marwin's total units are now 38 with the purchase of eight units from FRANK LUI, a Houston franchisee, and seven from PIZZA PARTNERS of Houston. Operator and franchisor of 135 casual-dining units, DAMON'S GRILL, finalized a deal with P. CHRISTOPHER HENNEY CO., which agreed to open four new restaurants in Connecticut over the next five years. The first location is slated to open in late 2005 in Windsor Locks, Conn., near Hartford. A CHOCK FULLO'NUTS brand coffee counter was added inside a franchised MCDONALD'S in Bridgeport, Conn. The store was described as a "one-unit test" by a spokesman for McDonald's Corp. in Oak Brook, IL. The spokesman also said that the cafe counter, which features a variety of bakery products, like muffins and bagels, as well as a selection of coffee drinks and other beverages, is staffed by Chock full o'Nuts employees and closes at 5 p.m., while the McDonald's restaurant stays open traditional hours. According to the company, TIM HORTONS, operator and franchisor of 2,587 doughnut specialty bakery-cafe outlets, is nearing the completion of its conversion of 42 recently acquired Bess Eaton doughnut shops in Rhode Island, Massachusetts and Connecticut. This spring, the Canadian-based division of WENDY'S INTERNATIONAL INC. bought the Bess Eaton outlets for $41.6 million. The company also said that within eight weeks of the acquisition, nearly all of the locations already were open for business under the Tim Hortons banner. The first SUBWAY RESTAURANT sandwich shop to open in the Caribbean island nation of Grenada had made its debut. The branch is in St. George's, Grenada's capital and is franchised by DAVID COELHO and GLENN FORBES. According to ANTHONY BARIL, the restaurant chain's president and treasurer, CHI-CHI'S INC. filed a motion with the U.S. Bankruptcy Court for the District of Delaware to establish sales procedures related to the company's proposed designation rights agreement with KIMCO REALTY CORP., a shopping center owner. Kimco agreed to buy the rights for Chi-Chi's leasehold and owned properties for a minimum of $35.2 million. The deal allowed for competing offers to be submitted to Chi-Chi's and its counsel and a public auction was held to select the best offer. LANDRY'S RESTAURANTS INC., owner of 290 casual-dining units, recently settled a lawsuit brought by former owners of the company's SALTGRASS STEAKHOUSE RESTAURANT chain, which Landry's bought in 2002. METRO NATIONAL CORP's suit against Landry's in U.S. District Court in Texas claimed that the Houston-based company would not divulge financial statements relating to the performance of the 27 steakhouses. According to the Houston Chronicle, Metro National had claimed that incentive payments related to the restaurants' performance "could very easily amount to $20 million". The case was settled out of court for an undisclosed sum, without Metro National reviewing the statements. After having been granted a 10-year extension of its food-and-beverage contract with the airport authority, HMS HOST CORP. said it would remain an operator at MCCARRAN INTERNATIONAL AIRPORT in Las Vegas through at least 2018. The concessionaire agreed to renovate more than 25 units it operates at the airport as part of the deal, which HMS Host estimated will yield $950 million in sales over the life of the contract. GINO'S EAST RESTAURANT CORP., parent of 12 pizzerias, added two touch-screen kiosks that allow customers to place mail orders for frozen pizzas at its flagship unit in Chicago. The pizzas are delivered frozen with preparation instructions. According to the company, PEET'S COFFEE & TEA INC. opened four new coffeehouses last month with a fifth unit slated to open shortly that. Three of the new units are in Northern California, in Petaluma, Alameda and Berkeley, and two are in Southern California, in San Diego and Pasadena with plans to open a total of 15 to 20 new coffeehouses by year-end. According to a Dow Jones news report, Advertising Age had quoted unnamed executives as saying that BURGER KING CORP.'s owners have been seeking a replacement for BK chief executive BRAD BLUM, the former Darden Restaurants vice chairman who joined the No. 2 burger chain in December 2002. Executives of Miami-based Burger King could not be reached for comment immediately. Texas Pacific Group, a spokesman for BK's principal owner, was quoted as saying the company had no comment on the report, which indicated that BK board members and executives had interviewed several potential candidates within the past month. AL LAPIN JR., restaurant industry veteran and cofounder of INTERNATIONAL HOUSE OF PANCAKES, died of cancer at 76. Lapin opened the first IHOP unit with his younger brother, JERRY, in 1958, in the Los Angeles suburb of Toluca Lake. Lapin expanded the chain through franchising in the 1960s. However, the recession of 1970 and 1971 reportedly prompted him to sell his stake in the company in 1973. The STARBUCKS COFFEE INTERNATIONAL arm of STARBUCKS COFFEE CO. acquired the chain's 35 licensed coffeehouses in Singapore from BONVESTS HOLDINGS LTD. President of Starbucks Coffee Asia Pacific, PEDRO MAN, said, "This acquisition is timely to support our growth in Singapore and the rest of Southeast Asia". Parent of Sobik's Subs and Westshore Pizza, QUALITY RESTAURANT VENTURES INC., signed an agreement with CRAIG MELTON to open up to 200 FAMOUS UNCLE AL'S HOT DOGS across the U.S. Southeast. SONIC CORP., parent of more than 2,800 drive-in restaurants, agreed to acquire 22 locations in Colorado from a franchisee. CLIFFORD HUDSON, Sonic's chairman and chief executive, said "We expect the transaction to add additional revenue growth and to be accretive to earnings over time." The No. 1 spot in FORTUNE magazine's list of the "50 best companies for minorities" was MCDONALD'S CORP. In addition to having the highest minority-employee retention rate, Fortune said, McDonald's received top marks for having three minorities on its 16-member board of directors. To derive its results, Fortune said it had contacted its own list of 1,000 companies as well as the 200 largest privately held U.S. companies and used a data-driven model and interviews with employees. Denny's, Yum! Brands and Darden Restaurants were among the other restaurant companies on this year's list. The board of 537-unit SCHLOTZSKY'S INC. removed senior management of the sandwich chain and elected a new interim chief executive. In a special meeting Schlotzsky's seven-member board named DAVID SAMUEL COATS, a Dallas lawyer, as interim CEO when they fired JOHN WOOLEY as president and chief executive. The board also removed senior vice president JEFFREY WOOLEY, the brother of John Wooley. Both men remain on the board. In 1981, they acquired Schlotzsky's and took the company public in 1995. The board also replaced chairman FLOOR MOUTHAAN with GARY M. CADENHEAD, a business school faculty member at the University of Texas, Austin. Coats, the interim CEO, is a former senior vice president of Continental Airlines Inc. Also, TRINITY CAPITAL LLC, an investment-banking firm, was retained by SCHLOTZSKY'S INC. to provide advice on restructuring and corporate finance. Parent of Johnny Carino's Italian restaurants, FIRED UP INC., said it had agreed to purchase three Johnny Carino's restaurants from SANDIA FOOD GROUP, in Abilene, Amarillo, and Midland, Texas. MARK DAY, president and chief executive of Albuquerque, N.M.-based Sandia, which operates nine units in New Mexico and Arizona said, "The funds from selling the three stores to Fired Up will allow us to continue opening new stores in Arizona, where we have seen very positive reception to the concept." The company confirmed that by the end of 2004, JACK IN THE BOX INC. will expand its new JBX-brand fast-casual concept by converting an unspecified number of Jack in the Box outlets in Boise, Idaho, and Bakersfield, Calif. A statement released by Chicago-based PEOPLE SCOUT, which said it was hired by the nearly 2,000-unit chain to process employee candidates for the new stores, said 16 locations would be revamped into the JBX format, but Jack in the Box vice president BRIAN LUSCOMB denied that number was correct. QDOBA MEXICAN GRILL, the JACK IN THE BOX INC.-owned chain of more than 140 fast-casual eateries, signed a group to a seven-unit development deal for central Michigan in Lansing, Mount Pleasant, Saginaw, Bay City, Midland, Traverse City and Jackson. Qdoba said GREG JOHN ROE of SOUTHWIND RESTAURANTS LLC and partners BOB and NORM SPALDING and KEVIN EGNATUK will open their first location in Lansing by late fall. Operator and franchisor of a chain of 133 fast-casual restaurants, MOE'S SOUTHWEST GRILL, said it had signed several franchise deals to open its first locations in the mid-Atlantic and Northeastern regions. Moe's said GRANVILLE SMITH of DC EATS and DONALD JAMES each agreed to add three units in Maryland, and RON JAEGER is slated to open five locations in Fairfield County, Conn., adding that JIM MORRISEY agreed to open five locations in Delaware. Also, according to Moe's, BILL MCGOLRICK and STEVE WALKER signed a deal to open three outlets in Washington, D.C. Former president of Red Lobster and Darden Restaurants and casual-dining veteran RICHARD RIVERA, confirmed that he is exploring a deal with RAVING BRANDS in Atlanta, the owner of Moe's Southwest Grill, Mama Fu's Noodle House and two other fast casual concepts. Raving Brands founder MARTIN SPROCK also verified reports that Rivera is interested in signing a deal to operate Moe's and Mama Fu's. Rivera says, "I'm looking at a whole host of entrepreneurial things, which is as I explained when I left Darden back in January. I've made contact, but I'm still in the looking stage at this point." Alleging that the company refused to pay a death benefit, the family of a MCDONALD'S employee who was killed two years ago when a car crashed into the restaurant where she worked sued the burger conglomerate. CYNTHIA A. MOLINO, a 45-year-old mother of four, was one of three workers who died two years ago when a man crashed his car into a Mount Ephraim, N.J., McDonald's, which is owned by the company. A McDonald's spokesman said, "Obviously, we are taking this matter very seriously, however we have not been served with complaint and it would be inappropriate to comment on legal matters." According to NOODLES & COMPANY, parent of nearly 90 fast casual noodle restaurants, they have signed two franchise deals to add restaurants in Indianapolis and Michigan. PASTA PERTRIO LLC of Grand Rapids, Mich. signed an area development deal to open 14 locations over the next five years in Lansing, East Lansing and the greater Grand Rapids region. The company also confirmed that it may make an initial public offering of stock as early as next year. The Scottsdale based operator and franchisor of 22 pizzerias, EATZA PIZZA INC. recently opened its second location in the Portland, Ore area. The outlet was built under a new area development deal with MARC FOX, who agreed to open five locations in the Portland area. Signing an agreement with DRUMARD TRADING LTD. to develop restaurants in Ireland, ROMA CORP INC., parent of 251-unit Tony Roma's, plans to open the first unit in Belfast, Northern Ireland. According to the company, a group of outside investors had acquired a "significant ownership stake" in SHELLS SEAFOOD RESTAURANTS INC., operator of 26 casual-dining eateries in Florida. GCM SHELLS SEAFOOD PARTNERS LLC and TRINAD CAPITAL LP have agreed to pay $1 million for a $1 million promissory note and warrants for 4 million shares of Shells' common stock. Claiming deceptive trade practices, breach of contract and fraud, five Phoenix-area franchisees of QUIZNOS SUB reportedly have sued the sandwich shop chain. The Denver Post reported the claims by the franchisees — C.K.H. LLC, LUNCH AT THE TURN LLC, SCOTT CHAMBERLAIN, INTREPID LLC and TAYLOR RESTAURANT HOLDINGS LLC — are related to Quiznos' expansion in the Arizona market beginning in 1999. In their lawsuit, the franchisees claim Quiznos reneged on promises that shops would not be located close to one another, that marketing and advertising fees would be used to promote their stores, and that the company would negotiate best prices with suppliers and pass on volume discounts and rebates. The complaint also contends that Quiznos did not honor commitments to limit the number of franchise operators in Arizona to four. A spokeswoman for Denver-based Quiznos said it believes the lawsuit is without merit. According to PIZZA INN INC., the 400-unit chain parent, president and chief executive RONALD W. PARKER has repaid his outstanding loan to the company, which had had a remaining balance of about $676,000. The loan originated from his purchase of company stock through the exercise of options. According to an annual report by TECHNOMIC INC., the 100 largest U.S. restaurant companies posted annual domestic systemwide sales growth of 5 percent to $150.3 billion in 2003, up $7.3 billion from 2002. Those chains outperformed the restaurant industry at large, whose sales increased by 3.4 percent last year, and markedly outpaced the next 100 highest-grossing U.S. chains, which inched up 0.7 percent, the report said. Technomic said that among industry segments, the doughnut sector led the charge by posting year-over-year growth of 20 percent, followed by Mexican, up 7.3 percent, and sandwich, which jumped 6.5 percent. A deal to acquire SWH CORP., parent of the MIMI'S CAFe chain was signed according to BOB EVANS FARMS INC., for $182 million in cash, including the assumption of approximately $78.7 million of outstanding debt. Bob Evans said Mimi's would operate as a separate subsidiary led by its chairman, THOMAS M. SIMMS, and president and CEO, RUSSELL W. BENDEL. Bob Evans' chairman and CEO, STEWART K. OWENS, said, "Mimi's unit growth rate of 15 to 20 percent should increase the Bob Evans' overall projected growth rate from current levels. Mimi's also neatly complements the geographical locations, seasonality and customer demographics of the Bob Evans concept." An agreement to open Asian food counters in the BYERLY'S and LUNDS grocery stores in the Minneapolis market has been signed according to LETTUCE ENTERTAIN YOU ENTERPRISES. LEYE operates several restaurants in that market, including Wildfire. Its Asian retail concept will replace 14 Leeann Chin units that had operated in those stores. According to KEN SMITH, the company's chairman and co-owner, ESCAPE ENTERPRISES LTD., parent of 168 STEAK ESCAPE locations, signed a development agreement to add its first restaurants in Canada and is on track to garner a deal to add locations in Mexico. The company partnered with LBCE INC. and the ROSE CORP.'S Private Equity Division to add 50 of the quick-service units in Canada over the next five years. Following an unresolved legal dispute with the franchisor, two franchised HOULIHAN'S RESTAURANTS closed in northern Raleigh and Cary, N.C. Franchisee RENAISSANCE RESTAURANTS closed the two units shortly after the franchisor filed suit, seeking to stop Renaissance from operating the restaurants under the Houlihan's name and to recover some $79,000 in unpaid royalties, training fees and other franchise fees. Neither side would comment on the lawsuit. With the help of federal funds, PASCHAL'S MOTOR HOTEL AND RESTAURANT, which had been a meeting place for black leaders during the civil rights movement, is being reopened as a restaurant, meeting hall and student housing center for Clark Atlanta University. Local restaurateur TRACY GATES, owner of the BUSY BEE CAFe, which opened in 1947 in Atlanta, will relocate to the nearby site and operate the concept as Busy Bee at Historic Paschal's by this fall. According to IHOP CORP., parent of the 1,164 unit chains, four franchisees agreed to open 28 new restaurants over the next two to 10 years in Indiana, Georgia, Rhode Island and Massachusetts. According to AARON KENNEDY, founder, president and chief executive of NOODLES & COMPANY, operator and franchisor of a chain of about 90 fast-casual noodle restaurants, signed as an area franchisee THE JAN COS.' new enterprise, NEW ENGLAND NOODLES LLC. Cranston, R.I.-based New England Noodles plans to open 45 restaurants over the next seven years throughout New England. BUFFALO'S FRANCHISE CONCEPTS, parent of the nearly 50-unit Buffalo's Southwest Cafe chain, said it had broken ground on its first Las Vegas restaurant. Franchised by WORKS FOR ME INC., the new location, slated to open in September, will feature 15 video poker machines in the bar. Claiming that the coffeehouse chain is violating federal law by classifying them as overtime-exempt managers even though less than 10 percent of their time is spent on management tasks, two STARBUCKS COFFEE employees are suing the Seattle-based company. The federal lawsuit reportedly seeks class-action status for managers who worked more than 40 hours a week in the past three years. Starbucks confirmed it had been served with the lawsuit, and said it was reviewing the complaint and would respond "in a timely manner." The company, denying it had misclassified the workers as exempt, said it "complies with all applicable federal and state laws." After the airport expanded CA One's 2-year-old contract, CA ONE SERVICES said it would add four foodservice outlets in the McNamara Terminal at DETROIT METROPOLITAN WAYNE COUNTY AIRPORT. Guinness Pub, Metro Cafe and Marketplace, Coffee Beanery and Vito's are scheduled to open next February. JOHN SCHNATTER, chairman and chief executive for PAPA JOHN'S INTERNATIONAL, returned to work two days after being hospitalized for injuries from a bicycle crash that police are investigating as a possible assault. According to a Papa John's spokeswoman, Schnatter, who was treated for cuts, bruises and an injury to his back, was riding with CURTIS TOLSON, an Olympics track-cycling hopeful, and a third rider, who avoided the crash. She said Schnatter was riding behind Tolson when a book "either flew off or was tossed" from an oncoming pickup truck. Tolson apparently was hit by the book and then Schnatter crashed into him. Potentially narrowing its focus to just the Popeyes Chicken & Biscuits brand, AFC ENTERPRISES INC., said it is exploring "strategic alternatives" for its franchised CHURCH'S CHICKEN brand, including a possible sale of the 1,528-unit subsidiary. AFC said the strategy would help "sharpen its strategic focus and maximize shareholder value." Following a criminal complaint in San Diego about the restaurants' alleged lack of workers' compensation insurance, franchisee RLLW INC. said it had reopened all 49 of its Pizza Hut units after abruptly shutting them down three days before. A spokeswoman for Dallas-based PIZZA HUT INC., PATTY SULLIVAN, said the franchisee had "worked through an administrative glitch" and resumed operations. The Austin American Statesman reported that TEXAS ROADHOUSE, parent of 165 casual- dining units, filed a trademark infringement lawsuit last month against La Vernia, Texas-based TRUE BLUE TEXAS ROADHOUSE and its owner DOUGLAS BODE. The complaint alleged that Texas Roadhouse had attempted to settle out of court with Bode and that customers mistakenly would presume True Blue to be part of the Texas Roadhouse operation. MICHAEL LINEHAN agreed to develop seven units in the Monroe and Ontario counties of New York according to CAMILLE'S SIDEWALK CAFE, parent of more than 30 fast-casual units. JAMBAJUICE, San Francisco-based operator and franchisor of a chain of more than 420 juice and smoothie shops opened a flagship location in Times Square, marking the company's third unit in the city. The new location is one of Jamba Juice's five largest stores with more than 1,700 square feet. The company said it plans to open five more shops throughout New York over the summer and intends to have 15 open in the city over the next 18 to 24 months. WENDY'S INTERNATIONAL expanded a test of a drive-thru-only concept that has no dining room but features a full menu, by opening one of the new units near its headquarters in Dublin, Ohio. According to spokesman BOB BERTINI, the store is about 40 percent the size of a traditional Wendy's and replaces an existing full-size Wendy's that generated a high-volume drive-thru business. He added that the new unit has one drive-thru lane and an enclosed walkup area and offers a traditional Wendy's menu for carryout orders. Bertini said the test concept, which was designed to "retain the look and feel of traditional Wendy's," would be evaluated by the company, as to its future viability, by year-end. Financially struggling upscale grab-and-go sandwich cafe operator BRIAZZ INC. of Seattle had closed most and possibly all of its eight Chicago units. Company chairman VICTOR ALHADEFF was unavailable for comment; however, employees confirmed some closures that were reported in news accounts. Parent of Sobik's Subs and Gator's Dockside Restaurants, ULTIMATE FRANCHISE SYSTEMS INC., signed a letter of intent to acquire Port Charlotte, Fla.-based OBEE'S FRANCHISE SYSTEMS INC., a chain of more than 65 sandwich shops. CHRISTOPHER SWARTZ, UFSI's chief executive says, "Obee's fits perfectly within UFSI's strategy of acquiring regionally powerful restaurant brands with a history of success and a strong base of franchisees." TACO DELMAR, operator and franchisor of approximately 70 quick-service restaurants, said TDM PACIFIC HOLDINGS, the company's master developer in Canada, agreed to add an additional 20 units throughout Western Canada. Southeastern-based burrito chain operators says the fast-casual Mexican segment is primed for virtually limitless expansion within and beyond the Sunbelt, citing explosive growth across their home region and the penetration of outside megabrands into Atlanta, Orland, Fla., and other markets. JOHN PARLET is working on growing a concept that combines electronic entertainment with hearty comfort food banking on the universal appeal of video games and pizza. Parlet has expanded the concept into a chain of five units since opening the first JOHN's INCREDIBLE PIZZA CO. store in 1997. BUBBA GUMP SHRIMP CO. launched its new fast-casual Italian concept, CAPI's ITALIAN KITCHEN in Southern California. Following its acquisition of Atlanta-based Winston Group, a 13-unit Golden Corral operator, top-grossing GOLDEN CORRAL franchisee METRO CORRAL PARTNERS INC. plans an aggressive expansion into the Atlanta and central Florida markets. With consumer trends indicating a demand for more seafood dining options, JOSEPH MELLUSO plans to hook customers on his TIN FISH and BOSTON & MAIN FISH CO. concepts through nationwide licensing. WILD NOODLES, a fast-casual noodle shop, opened by chef EDDIE MATNEY in 2000 is becoming a nationwide franchisee. Matney, who also owns a namesake fine-dining restaurant in Phoenix, sold franchise rights for 170 units around the country. LE MADELEINE BAKERY, CAFe & BISTRO is preparing for new expansion, planning to build about 30 more units by 2007. WALLACE DOOLIN, a Carlson Restaurants Worldwide veteran, became the company's CEO in 2002. According to The Dallas Morning News, one analyst says Le Madeleine could benefit from being the only "real player in the fast-casual space with a French flair." QUALITY DINING announced that DANIEL FITZPATRICK, CEO of the company, has offered to take the company private at $2.75 a share. APPLEBEE's INTERNATIONAL is promoting its new low-calorie menu initiative in part by targeting millions of people in the Weight Watchers database.
The 300-unit BAJA FRESH MEXICAN GRILL arm of WENDY'S INTERNATIONAL INC. said the chain launched its first CD promotion in July by selling "Food For Thought" by CARLOS SANTANA to benefit a children's charity. Cost for the 10-song CD, which features four new Santana songs and an unreleased song from his archives, is $8. Net proceeds will be donated by Baja Fresh to the Milagro Foundation, which supports health, education and arts programs for children and youths.
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