Executive Connections Newsletter:

Issue 53, AUGUST 2004

DICK'S EDITORIAL

Search assignments and requests for proposals continue to strengthen, particularly in areas that have seen little demand in the past two to three years. Even before the economy turned into recession, we saw many companies trimming development departments and training. Some of that reduction in force was do to reorganizations, consolidations, and mergers and acquisitions. Some companies, however, realized that the tight labor market at the unit level was putting new store openings at risk. The logic being, if one cannot even staff existing restaurants, why put new capital at risk and exacerbate the problem.

Today, things are changing for the better. We are enjoying an increase in demand for Franchise Sales, Real Estate, and Training Professionals. In fact, we are witnessing an up-tick in all categories, save Marketing which is unusually anemic. By and large, the news is good. As one of my Marketing buddies said, "I see your business as a leading indicator, so I am becoming more optimistic."

It is interesting to note that many of our new assignments are coming from smaller, growing chains looking to upgrade their management team. Likewise, a significant number of candidates are turning to Dick Wray and Consultants to find a more entrepreneurial opportunity. We are convinced that this is a very viable niche and we are well positioned to benefit from this trend.

The signs are good and we continue to be cautiously optimistic. An upcoming election in the U.S., the War on Terror, and a shaky oil supply give us pause. Notwithstanding the caution flags, we see a strong finish in 2004 and a better 2005. Regards,

Dick Wray, CEO

"Dick Wray & Consultants - Maintaining the same ethical recruiting standards for over 30 years."


EXECUTIVE MOVEMENT

WENDY BECK was appointed to chief financial officer by WHATABURGER INC., operator and franchisor of more than 600 quick-service hamburger units, replacing 24-year company veteran MIKE MCLELLAN, who will assume a key advisory role for the company. Also, McLellan will remain executive vice president and serve as secretary on the company's board.

CHRISTOPHER PEITERSEN was promoted from concept chef to vice president of culinary development by FIRED UP INC., operator and franchisor of 118 Johnny Carino's Italian restaurants in 23 states. Peitersen , a 14-year veteran of the industry, started with Johnny Carino's first unit in 1995. "Since Fired Up acquired Johnny Carino's seven years ago, over 90 percent of the menu items have been improved or are new additions," said NORMAN ABDALLAH, Fired Up's chief executive and co-founder. Peitersen has been the "driving force" behind the menu improvements, he added.

GARY LIEBERTHAL is now on the board of directors for CHECKERS DRIVE-IN RESTAURANTS INC., operator and franchisor of 787 twin-lane drive-thru restaurants, including the Rally's Hamburgers chain. Lieberthal is the retired former chairman and chief executive of Columbia Pictures Television, a post he held from 1986 to 1992.

PATRICK RENNA was named president of ROUNDGRILLE INC., operator of three FIRE + ICE restaurants in New England and franchisor of three locations in California and Arizona, replacing JIM MILLER, who now serves as chairman. Renna joined Roundgrille in August 2001 as controller.

CYNTHIA JAMISON was named chief financial officer of COSÍ INC., parent of approximately 80 fast-casual restaurants replacing MARK STICKNEY, who decided not to relocate his family to the Chicago area, where Cosí's new corporate headquarters will be located in the fall of this year. Cosí also named PATRICK DONNELLAN vice president of development strategy and JOE VETRANO vice president for information technology.

MICHAEL O'KEEFE was named vice president of operations by SIZZLER USA, the operator and franchisor of 243 grill-buffet restaurants, which is based in suburban Sherman Oaks. Most recently, O'Keefe was chief operating officer of San Francisco-based Pasta Pomodoro Inc. He also is a veteran executive of Rubio's Restaurants and Vicorp Restaurants.

JOHN NELSON was hired by TACO DELMAR, parent of 92 quick-service restaurants, primarily on the West Coast, for the newly created post of director of purchasing and distribution. Nelson was director of perishables merchandising at Sysco Food Services of Seattle.

MCDONALD'S CORP. expanded the role of its vice chairman and elevated the leaders of its U.S. division. U.S. president MIKE ROBERTS was promoted to chief executive officer of the chain's U.S. business, comprising 13,000-plus restaurants. Succeeding Roberts as president of McDonald's U.S. is RALPH ALVAREZ who was chief operations officer. JIM SKINNER, vice chairman, will take on added management oversight for the chain's Asia-Middle East-Africa division as well as its Latin America business. Chief financial officer MATTHEW PAULL was given the added title of senior executive vice president; he was executive vice president. McDonald's said that Paull also will be responsible for corporate strategy. The changes come nearly three months after Charlie Bell was named chief executive of the company upon the death of former CEO Jim Cantalupo. A spokesman said Bell is "maximizing the deep talent on the management team."

NICHOLAS BIELLO was promoted by DELAWARE NORTH COS. to the new post of president of CA One Services, DNC's airport concessionaire. He was COO of the Contract Services group. DNC also promoted RICK ABRAMSON to the new post of president of its Sports Services division. He was president of DNC's Delta Queen Steamboat Co. group of three river cruise ships. BRUCE NIERENBERG was named president by DELAWARE NORTH COS. of its DELTA QUEEN STEAMBOAT CO. INC. Nierenberg, who was executive vice president for the DNC subsidiary, replaces RICK ABRAMSON.

JOHN LAUCK was hired by MRS. FIELDS FAMOUS BRANDS, parent of Mrs. Fields Cookies, TCBY and Pretzel Time, as executive vice president of marketing, replacing FRANN WOLFE, senior vice president of marketing, who left the company. Mrs. Fields also promoted DARA DEJBAKHSH to executive vice president of operations and development, from vice president of operations for TCBY.

BRANDON GOUGH was appointed president by JUICE IT UP! FRANCHISE CORP., parent of 60 smoothie units, and JIM PICKREN was appointed vice president of engineering and construction, a new position. Gough was vice president of marketing and operations. Pickren came from Nestle USA, where he held various engineering posts. A former senior executive of Continental Airlines, GREG BRENNEMAN, was named as new chief executive at BURGER KING CORP. He succeeds BRAD BLUM, the former Darden Restaurants vice chairman who left BK in July after 18 months on the job. Brenneman will join Burger King as the chain's 10th CEO in 15 years.


FINANCIALS

Parent of the 151-unit fast-casual Rubio's Fresh Mexican Grill brand, RUBIO'S RESTAURANT INC., posted a $1.2 million profit for the second quarter, versus a loss of $3.1 million a year ago, on 11-percent- higher revenues. The company attributed its upbeat results to better restaurant operations and the rollout of a value menu.

A 30-percent jump in earnings for the second quarter was reported by CHICAGO PIZZA & BREWERY INC., parent of 32 BJ'S casual-dining restaurants and brewpubs on a 15-percent increase in revenues, mainly owing to new-store openings and strong same-store sales.

In the second quarter, LANDRY'S RESTAURANTS INC., parent of 294 casual-dining units, grew its restaurant operating profit 19 percent, on 5.9-percent-higher revenues. Landry's reported net income of $21.8 million, or 77 cents per diluted share, for the quarter ended June 30, versus $16.9 million, or 60 cents a share, for the previous second quarter.

DOMINO'S PIZZA INC.'s quarterly profits fell $1.6 million despite a 10-percent increase in revenues for the quarter ended June 13. The company said higher interest expenses from increased debt levels after the company's June 2003 recapitalization led to the 9.2-percent drop in earnings.

The owner and franchisor of the 270-unit casual-dining chain, BUFFALO WILD WINGS INC., said it benefited from a menu price increase and more restaurants posting second-quarter net income of $1.3 million, or 15 cents per diluted share, versus a loss of $121,000, or 4 cents a share, in the year-earlier quarter.

For the three months ended June 27, second-quarter net earnings of RARE HOSPITALITY INTERNATIONAL INC., parent of 249 steakhouses, grew 23 percent as revenues rose 21 percent. Rare's profit for the period was $13.3 million, or 37 cents per diluted share, versus $10.8 million, or 31 cents a share, for the previous second quarter. PHILIP HICKEY, chairman and CEO, said, "The operating leverage we achieved through this revenue growth enabled us to offset the impact of higher commodity pricing and produce an increase in operating income and net income as a percentage of revenues for the quarter."

Despite an operating loss for its Baja Fresh Mexican Grill brand, WENDY'S INTERNATIONAL INC. booked 11-percent-higher operating income for the second quarter on 16-percent- higher revenues. Wendy's net income was $71.6 million, or 62 cents per diluted share, for the quarter ended June 27, versus $61.1 million, or 53 cents a share, for the previous second quarter.

According to the company, profits at CHECKERS DRIVE-IN RESTAURANTS INC. fell 22.4 percent on higher income tax expenses, commodity cost pressures and flat revenues for the second quarter ended June 14. Earnings reached $3.2 million, or 25 cents per diluted share, compared with $4.1 million, or 32 cents a share, in the year-ago quarter.

Saying it plans to "significantly reduce" its base of 32 company-operated units, IHOP CORP., operator and franchisor of 1,167 units, posted 9.6-percent lower second-quarter earnings excluding special charges. IHOP reported net income of $4.4 million, or 21 cents per diluted share, for the quarter ended June 30, versus $11 million, or 51 cents a share, for the previous second quarter.

Parent of 51 restaurants in 22 states, MCCORMICK & SCHMICK'S SEAFOOD RESTAURANTS INC., priced its initial public offering of 6 million shares of common stock at $12 a share, which began trading on the Nasdaq in July. With 13.8 million shares outstanding, McCormick said in its offering prospectus that it plans to use the estimated $65.2 million in net proceeds to repay debt and redeem preferred stock. Also, the company will pay $2.5 million to terminate management agreements with principal shareholders Bruckmann, Rosser, Sherrill & Co. Inc. and Castle Harlan Inc., as well as the covenants not to compete with founders William McCormick and Douglas Schmick.

Operator and franchisor of 736 casual-dining units, RUBY TUESDAY INC., boosted its fourth-quarter net income 23 percent to $31 million, or 46 cents per diluted share, versus $25 million, or 39 cents a share, a year earlier.

A second-quarter loss of $3.9 million on flat revenues and decreased same-store sales was reported by BUCA INC., parent of the Buca di Beppo and Vinny T's of Boston chains.

CBRL GROUP INC., parent of the Cracker Barrel Old Country Store and Logan's Roadhouse chains said it expects to earn 65 cents to 68 cents per diluted share, versus 70 cents per share in the year-ago period.

According to the company, earnings for the second quarter at OUTBACK STEAKHOUSE INC., operator of 852 namesake units, will be below analysts' expectations as the result of lower-than-expected same-store sales growth and higher commodity costs, particularly for produce and dairy.

Saying that food costs had impaired results, CEC ENTERTAINMENT INC., parent of the 479-unit Chuck E. Cheese's chain, reported a 4-percent rise in second quarter net income and an 8-percent boost in revenues.

Wendy's largest franchisee, DAVCO RESTAURANTS INC., with 153 units, filed an amended registration statement with regulators to sell enhanced income securities, a hybrid representing common stock and debt.

For the second quarter ended June 30, MCDONALD'S systemwide burger restaurant sales increased 8.6 percent in constant currencies, and MCDONALD'S CORP. expects its earnings for the quarter to be up 27 percent to 47 cents per share, the company said.

Excluding a special gain on a 7-percent gain in revenues, YUM! BRANDS INC. reported a 16-percent jump in second-quarter net earnings. Operating profit for the quarter ended June 12 fell 3 percent in the United States but rose 14 percent internationally, in constant currencies. Yum said profitability in the U.S. was hurt by significantly higher commodity costs, especially for cheese and meat.

This month, shares of DOMINO'S PIZZA INC. opened on the New York Stock Exchange at $14 a share but fell 3.6 percent throughout the stock's first day of trading to close at $13.50 a share. According to earlier filings with the Securities and Exchange Commission, the company's initial public offering was expected to fetch a share price of between $15 and $17.

According to the company, for the five weeks ended July 4, same-store sales at DARDEN RESTAURANT INC.'s Olive Garden chain increased between 4 percent and 5 percent while same-store sales at Darden's Red Lobster chain fell between 2 percent and 3 percent.

It was disclosed by PAPA MURPHY'S TAKE 'N BAKE PIZZA an unspecified capital investment from CHARLES BANK CAPITAL PARTNERS, a Boston-based private equity investment firm, would be used toward the pizza chain's expansion plans. The company said in a statement that nontraditional locations, including grocery stores, retail outlets and military bases, will be a key element to its growth strategy.

One week after the resignation BRAD BLUM as chief executive of BURGER KING CORP., same-store sales for June had jumped 11.8 percent at franchised branches of the chain and 16.5 percent at Burger King-owned restaurants, marking the fifth straight month of increased same-store sales.

A 15.4-percent increase in revenues to $29.3 million for the second quarter ended June 27 was reported by CHICAGO PIZZA & BREWERY INC., which operates 32 casual-dining restaurants and brewpubs under the BJ's brand name.

For the five weeks ended June 30, DENNY'S CORP., operator and franchisor of 1,169 restaurants, reported that same-store sales had climbed 5 percent at company-owned restaurants, while guest counts had risen 1.6 percent and the average check had increased 3.4 percent.

Systemwide same-store sales for the second quarter ended June 30 at IHOP CORP. had increased 4.2 percent. Results were bolstered by the strong appeal of its Stuffed French Toast and Sirloin Round Up promotional products, which strengthened its breakfast daypart and attracted guests to lunch and dinner.

For the five weeks ended June 27, PAPA JOHN'S INTERNATIONAL INC. said systemwide domestic same-store sales grew 1.9 percent, reflecting a 3.6-percent increase at company owned restaurants and a 1.3-percent rise at franchised units.

Reflecting a 5.1-percent increase at company restaurants and a 7.4-percent rise at franchised units, APPLEBEE'S INTERNATIONAL INC. said systemwide same-store sales for the five weeks ended June 27 grew 6.8 percent. Guest traffic at company restaurants increased 2.5 percent.

Operator of 564 family restaurants, BOB EVANS FARMS INC., said same-store sales for the four weeks ended June 25 fell 2.8 percent, while average menu prices were up about 2.4 percent for the period.

A net loss was posted by TOTAL ENTERTAINMENT RESTAURANT CORP., parent of 69 Fox and Hound and Baily's restaurants, after an asset impairment charge for the second quarter and same-store sales had nudged down 0.2 percent.

For the fourth quarter ended April 30, WORLDWIDE RESTAURANT CONCEPTS INC., parent of Sizzler and Pat & Oscar's and a franchisee of KFC, reported 48-percent-higher operating profit, while total revenue increased 23 percent.

A 3.2-percent increase in same-store sales during the month of June and a 9.3-percent boost for its second quarter ended June 28 was reported by the SMITH & WOLLENSKY RESTAURANT GROUP. Total sales for the quarter increased 15 percent to $30 million. For the five weeks ended June 27, STARBUCKS CORP. reported a 10-percent increase in same-store sales at company-operated units. Consolidated net revenues were up 26 percent from the same period last year. Also, the company recorded a 44-percent boost in earnings as revenues jumped 27 percent to $1.3 billion.

Preliminary second-quarter revenues of about $102.5 million for the three months ended June 27 were reported by CALIFORNIA PIZZA KITCHEN INC., whose chain's 168 restaurants include 29 franchised or licensed branches, versus $87.9 million a year earlier. The operator of 105 namesake units and 44 Pei Wei Asian Diners, P.F.CHANG'S CHINA BISTRO INC., posted a 28-percent increase in second-quarter revenues to $175.3 million and said sales for the three months ended June 27 were $152.5 million at P.F. Chang's and $22.8 million at Pei Wei.

One of GOLDEN CORRAL's largest franchisees, FRISCH's RESTAURANTS, is experiencing store cannibalization which is dragging down sales results.

According to the company, the 30% decline in profits in the second quarter at LONE STAR STEAKHOUSE & SALOON, was the result of higher beef prices.

Thomas Weisel Partners continues to rate shares of OUTBACK STEAKHOUSE peer perform in the context of a Market Weight sector rating for the restaurant industry. TWP believes that Outback's unique competitive position along with favorable sector fundamentals will allow the company to achieve 15% long-term earnings growth driven primarily by 12% annual capacity growth rate, and it appears that the current valuation reflects those positive dynamics.

STARBUCKS CORP.'s shares are also rated by Thomas Weisel Partners with a Peer Perform based solely on existing valuation, with an impressive 10% comp sales performance for June.

For Q3 ending May 31, 2004, SONIC announced an 18% increase in net income to $19.1 million.


HOSPITALITY

Hotels

With China now the most promising market of growth for many U. S. hotel companies, STARWOOD HOTELS & RESORTS WORLDWIDE INC. is ready to announce plans to build two W Hotels in China. This would be the first incursion of a boutique, design-style hotel chain into that country. The two W hotels will be built in Shanghai and Hong Kong in a bid to grab the attention of Western travelers as well as the Chinese. Starwood is building seven other hotels elsewhere in China. MARRIOTT INTERNATIONAL INC. is also building six hotels in China, aiming to cater to well-heeled Chinese vacationers. The first full-scale Marriott beach resort, complete with a spa and tennis courts, recently opened in the town of Sanya.

Responding in part to the shifting demographics of parenthood, a number of hoteliers are now designing packages to attract pregnant women. The average age of first-time mothers is climbing steadily and the number of wealthy two-income couples is on the rise. A poll at babycenter.com, a popular Web site, found that 88% of the 6,787 women surveyed planned to take a last hurrah with their partners before their baby arrives. Small B&Bs and lavish resorts alike are seeking to attract parents-to-be.

Casinos

In a transaction valued at about $5 billion after the assumption of Caesars' debt, HARRAH'S ENTERTAINMENT INC., operator of 28 casinos primarily under the Harrah's name, agreed to acquire CAESARS ENTERTAINMENT INC. in a deal that would create the world's largest gambling company. According to David Anders, Merrill Lynch gambling analyst, "Harrah's has made it clear that they were seeking to build a high-end property on the Las Vegas strip by 2008". This would obviously enable them to compete immediately."

Airlines

Cost-cutting airlines do not want to pay for expensive food anymore thus leading the way for two of the industry's biggest caterers, Switzerland-based GATE GOURMET GROUP INC. and Germany-based LSG SKY CHEFS to move into the field of airline catering. "Before, our customer was the airline," says David Siegel, former president and CEO of US AIRWAYS GROUP INC. and Gate Gourmet's newly appointed chairman and CEO. "Now, it is the passenger." Spokeswoman for Sky Chefs, DALENE NICHOLS, says its customers "are embracing the concept". Recent company surveys show that 87% of customers think Sky Chefs meals are a good value.


NEWS

Restaurants now offer a broader range of takeout options. Instead of the usual burgers and fried chicken at fast-food drive-thru's, diners can now order items like fried calamari. Offering some driver-friendly service reminiscent of a 50's carhop, casual-dining restaurant chains such as APPLEBEE's and ROMANO's MACARONI GRILL have upgraded their takeout services. At OUTBACK STEAKHOUSE, customers can phone in orders and the description of their cars to, pull up to a designated parking area and a server brings the food out. The new emphasis on food to-go represents an attempt by casual-dining restaurants to capture a piece of the most pervasive trend in American dining. In May, takeout and delivery orders rose 6% from a year earlier for major casual-dining chains and make up about 10% of their overall traffic.

The fast-food industry is now chasing late-night customers after having thoroughly squeezed the lunchtime market dry. Chains from MCDONALD's CORP. to WENDY's INTERNATIONAL INC. to STARBUCKS CORP. are keeping their doors open longer, desperate for growth in a highly competitive business. Four years after Wendy's began promoting its late-night program nationwide, 90% of its roughly 5,800 units are open until midnight or later. In places such as Miami, Wheaton, Colo., Kenosha, Wis. And Atlanta, Starbucks has opened 41 all-night units, a striking departure for a company that generally closed at 6 p.m. just a few years ago. TACO BELL, subsidiary of YUM! BRANDS INC., led the fast-food charge into the late night market once dominated by WHITE CASTLE MANAGEMENT CO., DENNY's CORP and IHOP CORP. Many restaurants have invested heavily in such items as closed-circuit cameras within view of customers at cash registers, thus, security during late-night periods is of little concern. Others offer free meals to law enforcement officials, hoping their presence will be a crime deterrent. The majority of McDonald's restaurants open for extended hours do so only with drive-thrus. Half of Starbuck's new 24-hour units are drive-thrus.

A chain of upscale Sichuanese restaurants, SOUTH BEAUTY, has created a powerful brand in a hurry. It has grown to 11 locations in the capital city of Beijing and three in Shanghai, with plans to open half a dozen more across the country over the next year since opening its first store in a sleek Beijing office tower four years ago. Five new outlets have opened in the first half of 2004 alone. Revenues doubled to 200 million Yuan, or more than $24 million, in 2003, over the previous year. U.S. fast-food chains, including MCDONALD's CORP., YUM! BRANDS INC.'s KFC unit and SUBWAY RESTAURANTS, have multiplied, while more upscale Western chains like WHITBREAD PLC's TGI Friday's and OUTBACK STEAKHOUSE INC. have opened in Beijing in smaller numbers. Now South Beauty is challenging foreign rivals by bringing the Western concept of standardized, up market chains to Chinese cuisine.

For some customers, the roast beef sandwich that has been ARBY's signature dish for 40 years, was starting to get a little boring. That was a big problem for the country's ninth-largest fast-food chain last year, when it slumped as competitors brought out new dishes like salads and wraps, while Arby's continued to stay with its old menu. DOUG BENHAM, Arby's president and chief executive, acknowledges that part of the Fort Lauderdale company's problem was its failure to respond as quickly as rivals, including SUBWAY and PANERA BREAD, to consumers' evolving tastes and desire for healthier fare. Benham said his close ties to franchisees from years of working among them has helped him get new products into restaurants in a matter of months, not years, as in the past. Among them are $3.99 Market Fresh salads with fresh-cut apples, dried cranberries, toasted almonds and mandarin oranges. More salads and other menu items are planned. According to Benham, "Our strategy is to continue to come out with products that meet the nutritional alternatives that our customers want. And whether it's low carb, low fat, whatever the next thing is."

In a place where there is little other choice, choosing APPLEBEE's is easy. There is no CHILI's, no HOULIHAN's and no BENNIGAN's. In Hays, Kansas, a community of roughly 21,000, Applebee's is the only brand-name casual dining restaurant. The scene in Hays helps explain why Applebee's International Inc. is the star of the $440 billion restaurant industry. The Overland Park, Kansas chain is entering rural markets that never before boasted an upscale restaurant or at least one that passes for upscale while competitors battle for space in the parking lots of suburban shopping malls.

The Boston area has one doughnut store for every 5,750 residents with at least 1,050 donut stores in the Boston market. Doughnut-like desserts have been part of the local cuisine since colonial times. Food industry analyst, John Glass, says, DUNKIN' DONUTS, based in the area, "is a New England institution…like the Red Sox or the Boston accent".

BUFFALO'S SOUTHWEST CAFe restaurants debuted three of its most popular sauces throughout the Southeast and Midwest this month. Says Corporate Executive Chef SHAUN CURTIS, "The number one request we receive in our customer service department is from customers asking where they can buy our sauces. Now, some of our favorite sauces (including Death Valley Wing Sauce, Hot Wing Sauce and Vidalia Onion Steak Sauce) can be purchased in our restaurants." Buffalo's also plans to expand the retail line with additional products that can be purchased on the company's web site as well as in the restaurants.

According to published reports, JEFFREY CHODOROW, financial backer of ROCCO'S ON 22ND, was granted permission by Judge IRA GAMMERMAN to sell the failing restaurant. Also, New York chef-restaurateur ROCCO DISPIRITO, of the upscale Union Pacific, was barred from Rocco's, which had been the site of his NBC reality TV show.

The 137-unit chain, PLANET SMOOTHIE, launched Planet Smoothie Cafe, a new fast-casual extension to its original quickservice concept. The company said that in an effort to offer customers more healthful choices, including oatmeal, panini sandwiches and salads, it expanded the concept. The company also said that Planet Smoothie Cafe has since sold over a dozen franchises since it first opened this summer in Orlando, Fla.

A multistore development deal with DAVID PARADISE and his partners was signed by IHOP CORP., operator and franchisor of at least 1,167 family-dining eateries in North America, to develop five locations over the next 18 months in the Youngstown, Ohio, and Cleveland markets. Also, he agreed to acquire five existing IHOP restaurants in the area from other franchisees.

AVADO BRANDS INC. debuts HOPS CITY GRILLE, an updated version of the Madison, Ga.-based company's 54-unit Hops Restaurant and Brewery brand In Lakeland, Fla. Designed by AU MILLER YOUNGQUIST PC of Chicago, the 4,700-square-foot restaurant, is part of the embattled company's efforts to transform the Hops concept into a "city-style" eatery that brings a contemporary dining experience to the chain's predominately suburban locations. In February, Avado filed for Chapter 11 bankruptcy protection from creditors.

Under a new pact with the Raleigh, N.C.-based franchisor, FRISCH'S FAMILY RESTAURANTS INC., operator of 26 GOLDEN CORRAL grill-buffet units in four Ohio markets as well as Louisville, Ky., agreed to open 21 more Golden Corrals in western Pennsylvania, southern Michigan and Columbus, Ohio. When planned openings are completed by 2011, Frisch's would have 62 Golden Corrals, it said.

After meeting this month, members of the GEORGIA HOSPITALITY & TRAVEL ASSOCIATION will decide whether its affiliate, the GEORGIA RESTAURANT ASSOCIATION, may separate from GHTA to merge with the GEORGIA RESTAURANT COUNCIL, formed by a group of Georgia chain restaurateurs. GHTA said its executive committee and board of directors both supported the GRA's bid to separate and merge with the GRC, which was formed last year when members said they saw the need for a dedicated foodservice lobbying, training and education body.

Operator and franchisor of 168 casual-dining restaurants, CALIFORNIA PIZZA KITCHEN INC., plans to open a new prototype full-service restaurant and launch an additional four to six full-service restaurants and one CPK ASAP unit — the company's fast-casual concept — by year-end. The company previously planned to open 15 units in 2004, however, CPK said "more stringent site selection" led to its decision to reduce new store openings to a total between seven and nine restaurants.

A settlement was reached between TEXAS ROADHOUSE, the 165-unit chain based in Louisville, Ky., and TRUE BLUE TEXAS ROADHOUSE bar in La Vernia, Texas, to remove Texas from its name. The Louisville company sued in U.S. District Court in Austin for trademark infringement by the bar. According to the San Antonio Express-News, owner of the bar, DOUGLAS BODE, settled rather than fighting in court. However, the bar may continue to use signage in the shape of Texas and its armadillo motifs.

A deal was signed by HARDEE'S FOOD SYSTEMS INC., operator and franchisor of 2,081 quick-service units, to add four new restaurants in Anne Arundel County, Md., and along the eastern shore of Delaware by the end of 2007. OTAC INC., which owns 18 Hardee's locations and has earned Hardee's Franchisee of the Year Award for two of the last three years, will operate the new locations.

Four new restaurants were opened over the past four weeks. CAPTAIN D'S is parent of 580 quick-service seafood eateries. The new locations include a company-owned store in Madison, Ind., and three new franchise locations in Hattiesburg, Miss., and Villa Rica and Dahlonega, Ga.

The sports-and-entertainment arm of THE ANSCHUTZ CORP., AEG, hired LEVY RESTAURANTS and WOLFGANG PUCK CATERING AND EVENTS to manage foodservice at all of AEG's facilities worldwide. The multiyear contract expands AEG's relationship with Levy, which has managed premium dining and catering at AEG's Staples Center.

Deals were signed to open four franchised locations in the Caribbean by CHESTER'S INTERNATIONAL LLC, parent of more than 1,400 quick-service units. The new restaurants are slated to debut this fall in Puerto Rico, Jamaica and Grand Cayman. Earlier this year, Chester Fried changed is name to Chester's International and shifted its company operated business model to a franchise program. "We believe the new Chester's franchise program has set the stage for future expansion and success of the Chester's brand in the Caribbean," said JEAN MOSS SOLOMON, managing director for HAPPI FOODS (JAMAICA) LTD., and operator of the new locations in Jamaica.

According to a report in The Hartford Courant, a former waitress at a West Hartford, Conn., location of T.G.I. FRIDAY'S restaurant is suing THE BRIAD GROUP, a Florham Park, N.J.-based operator of about 20 T.G.I. Friday's in New Jersey and Connecticut, alleging that she and other members of the wait staff were underpaid. The lawsuit alleges that the waitress was required to do side work, such as wrapping silverware, cleaning floors and filling ice bins, without being paid minimum wage.

According to the company, CARVEL CORP., franchisor of more than 470 ice cream units, granted 66 franchise licenses and opened 24 new locations across the country during the second quarter of 2004. Carvel officials said the results stem from a new-store prototype; new products, such as baked waffle cones and bowls; and intensive advertising and public-relations initiatives.

The board of LUBY'S INC., parent of 139 cafeterias, has approved the consolidation of its corporate headquarters to Houston from San Antonio by the end of 2004. Luby's president and chief executive, CHRIS PAPPAS, said "For the past three years the company has functioned with corporate operations straddling two cities." All of Luby's San Antonio-based corporate employees were asked to relocate to Houston, to which the company intends to move approximately 80 jobs.

Bangkok, Thailand, nightclub operator WINGS & THINGS agreed to open three Hooters in Thailand next year according to HOOTERS OF AMERICA INC., operator and franchisor of more than 370 casual-dining restaurants. The first Pacific Rim Hooters opened in Singapore in 1996.

A 53-unit T.G.I. Friday's franchisee, MAIN STREET AND MAIN INC., said it had changed its name to Main Street Restaurant Group to "clearly" describe the company, and had debuted a new logo. The company said that it is restructuring and streamlining its corporate office. The cuts would lead to $250,000 in severance and termination costs in the third quarter.

By year-end, QUIZNOS SUB, parent of more than 3,100 sandwich shops, is slated to open its first location in Quebec.

A development deal to add 20 locations in California, including the Sacramento area was finalized by QDOBA MEXICAN GRILL, the JACK IN THE BOX INC.-owned operator and franchisor of more than 150 fast-casual restaurants. Franchisee ABE ALIZADEH and partner KOBRA ALIZADEH plan to open two units in Roseville, Calif.

This month, BENNIGAN'S GRILL & TAVERN, parent of 300 casual-dining units, opened its first New York location. The two-story, 12,000-square-foot eatery is located in Manhattan's Theater District.

Operator and franchisor of more than 100 eateries, JOEY'S ONLY SEAFOOD RESTAURANTS, said seven franchisees agreed to open 18 units over the next six months. Joey's Only said that one of the new franchisees is VAL OGDEN, a veteran of Darden Restaurants, who agreed to open five locations in the Atlanta market.

A subsidiary of Starbucks Coffee Co., STARBUCKS COFFEE INTERNATIONAL, agreed to acquire a nearly 50-percent stake in the coffeehouse chain's Malaysian licensee, BERJAYA COFFEE CO.

A 118-unit Burger King franchisee, QUALITY DINING INC., said a stockholder class action lawsuit had been filed against the company, its directors and two of its officers related to a proposed transaction in which its CEO, DANIEL FITZPATRICK, and others, offered to buy QDI for about $17 million. Seeking to halt the transaction, the suit, alleges that the defendants breached their fiduciary duty by advancing individual interests at the expense of shareholders. QDI said it believes the suit is without merit.

Parent of the Fresh Choice and Zoopa buffet chains, FRESH CHOICE INC., closed 10 of its 56 restaurants. They also filed a court petition for protection from creditors under Chapter 11 of the federal bankruptcy code. The closures came as the Morgan Hill, Calif.-based company's board promoted TIM O'SHEA to president, replacing EVERETT "JEFF" JEFFERSON in that post. O'Shea retains his duties as chief operating officer. Also, Fresh Choice promoted chief financial officer DAVID E. PERTL to executive vice president, from senior vice president. According to former president Jefferson, who continued as chief executive officer, the company would seek to reorganize its remaining 46 restaurants while restructuring its financial affairs.

The sandwich chain based in Austin, Texas, SCHLOTZSKY'S INC., announced that it closed five more of its 30 company operated restaurants, bringing the total of corporate-unit closures to 11 over the past two weeks.

CHECKERS DRIVE-IN RESTAURANTS INC., parent of the 795-unit Checkers and Rally's chains, said its Midwestern regional director of franchise operations, MIKE RILEY, acquired three Checkers locations in the Milwaukee area from a franchisee.

A group of GROUND ROUND franchisees representing about 55 restaurants, INDEPENDENT OWNERS COOPERATIVE LLC, won bankruptcy court approval for its bid to obtain the chain's franchise rights from Ground Round parent AMERICAN HOSPITALITY CONCEPTS INC., or AHC, which filed for Chapter 11 protection earlier this year Pending final court approval, the chain's headquarters would move to Freeport, Maine, from Braintree, Mass. Chief executive of the franchisee co-op, JACK CRAWFORD, would head the Ground Round system.

According to published reports, in an attempt to block Bay Shore, N.Y.-based ENTENMANN'S INC. from using the registered trademark "Original Glazed" on packaging and point-of sale displays and from allegedly imitating elements of a Krispy Kreme design on packaging, KRISPY KREME DOUGHNUTS INC. filed a lawsuit in federal court in Greensboro, N.C.

The Austin, Texas-based chain Fuddruckers franchisee, CARIBBEAN INVESTMENT GROUP, operator of four of the fast-casual burger restaurants in Puerto Rico, made its U.S. debut by opening a Fuddruckers outlet in Orlando, Fla.

During a joint convention in Chicago, delegates from the HOTEL EMPLOYEES AND RESTAURANT EMPLOYEES INTERNATIONAL UNION and from UNITE, a clothing, textile and laundry union, voted to merge the two groups into UNITE HERE, representing 440,000 active members and 400,000 retirees. Headquartered in New York, the new union is believed to be one of the largest in the United States. BRUCE RAYNOR of UNITE will serve as general president, and HEREIU's JOHN WILHELM will be president for hospitality industries.

A lawsuit was filed in the Court of Chancery in Delaware by BENIHANA OF TOKYO INC. against BENIHANA INC., parent of 56 teppanyaki restaurants, over a private financing deal with BFC FINANCIALCORP. The suit seeks temporary and permanent injunctive relief as well as unspecified monetary damages and recovery of costs in connection with Benihana Inc.'s recent closing of a $20 million sale of common stock, according to a filing with securities regulators.

A development deal was signed by BUFFALO'S FRANCHISE CONCEPTS INC., franchisor of the Buffalo's Southwest Cafe chain to open its second Houston restaurant in early 2005 with FULL BELLY ENTERPRISES LLC, owned by Houston resident JOEY MOORE and a private investor.

A deal was signed by CAMILLE'S SIDEWALK CAFe, parent of 40 bakery-cafe units, with COBEE MARKET DEVELOPMENT LLC to add 28 restaurants over the next 20 years to a territory that includes New York as well as Nassau and Suffolk counties in Long Island, N.Y.

Under the leadership of a new owner, JACK BUTORAC JR., who purchased the company earlier this year, MARCO'S PIZZA, parent of 123 pizzerias, says it plans to double its Midwestern presence. Butorac is a former president and chief executive of Tumbleweed Southwest Mesquite Grill & Bar and executive with Chi-Chi's and Fuddruckers. PASQUALE "PAT" GIAMMARCO, who Butorac purchased the company from, remains with the organization in concept development.

The publicly traded operator of 47 franchised Wendy's units, MERITAGE HOSPITALITY GROUP INC., said it is slated to open its first O'CHARLEY'S restaurant in Grand Rapids, Mich. this month.

A co-branded ice-cream and coffee-shop concept by BEN & JERRY'S, a 325-unit retail and wholesale ice-cream company, was rolled out in several markets with the Waterbury, Vt . - based coffee wholesaler GREEN MOUNTAIN COFFEE ROASTERS.

According to court papers obtained by The Associated Press, JUDGE CHARLES CASE of the U.S. Bankruptcy Court in Wilmington, Del., authorized CHI - CHI'S INC. to pay a settlement of $2.18 million for 60 claims from customers of a large hepatitis A outbreak traced to a Chi-Chi's unit in Monaca, Pa. ANTHONY BARIL, Chi-Chi's president, said he could not comment on the settlement because he does not have detailed day-to-day knowledge of the bankruptcy court proceedings. He said he believes the insurers will pay the settlement.

Congress recently reauthorized the NATIONAL SCHOOL LUNCH PROGRAM, and several changes were made to it. Among those changes are an extension and expansion of a fresh fruit and vegetable pilot program that is being tested in four states and with one Native American tribe and improvements to the process by which school districts can certify children from low income families as eligible for free or reduced-price meals.

Officials of the operator and franchisor of 560 quick-service seafood units, at CAPTAIN D'S, did not respond to requests for comment on a recently published report indicating that the chain was being positioned for an acquisition by a private equity investor.

Wireless Internet access program at THE KRYSTAL CO., operator and franchisor of more than 425 quick-service units, was expanded to include at least 50 units in seven states. The expansion of the Wi-Fi program comes nearly a year after Krystal debuted its first Krystal HotSpot at its Knoxville at the University of Tennessee. Customers with Wi-Fi-enabled laptops or devices can surf the Internet for free at the locations.

APPLEBEE's is the fastest growing player in the casual dining segment, targeting smaller markets where many other brand-name dining establishments have not ventured. From suburbia to rural locations, the company has made an effort to know and understand all of its customers, offering a variety of dining options to appeal to all palates.

Following a $42.5 million bid submitted to the U.S. Bankruptcy Court, OUTBACK STEAKHOUSE has won the rights to 76 CHI-CHI's restaurants, which includes furniture, fixtures, and equipment and liquor licenses for the sites. After declaring Ch. 11 last year, Chi-Chi's began selling corporate assets to satisfy creditors.

Parent of 2,771 pizza delivery locations, PAPA JOHN'S INTERNATIONAL INC. said Blue and Silver Ventures Ltd., an entity of the Dallas Cowboy's owner, Jerry Jones, had purchased a 40% stake in 71 of the company's stores in Dallas, Austin and Waco.

Hoping to emerge from financial trouble brought on by struggles during the 1990's, DENNY's is counting on improved hospitality and bigger breakfast portions to help it. Analysts say the chain, despite nine consecutive months of improved same-store sales, will be challenged by debt payments and increased competition from quick-service restaurants keeping later hours. The top 50 chains were recently listed by Restaurant Business. The noodle shop, PEI WEI, run by P.F. CHANG's leads the way, while other fast-growing companies include COLD STONE CREAMERY and BONEFISH GRILL, the only seafood restaurant in the top 50.

New low-calorie blended drinks have been launched by STARBUCKS . The Frappuccino Light blended coffee without whipped cream, contains 150 calories and 1 gram of fat versus the original version that contains 260 calories and 35 grams of fat.


RESUME TIPS

By: Bettie Biehn

"The Truth, the Whole Truth, and Nothing But…"

Most of us have embellished a story or two in our lifetime. The length of that fish we caught, the length of the putt we made, the amount of money that we earn….you get the picture. And in these situations, as long as no harm was done, no one got hurt, and no laws were broken, it was probably o.k. This is not to condone outright lying in day-to-day life, but to simply acknowledge that stretching the truth is something that most of us do, with few consequences.

But your resume is definitely not the place to embellish or stretch the truth. This is one place where telling the whole truth is by far the best action. Perhaps you've heard stories about folks who have fabricated a college degree, "enhanced" their job responsibilities or titles, or inflated their salaries. They did so in hopes of impressing prospective employers, and to be hired in higher-level positions with greater salaries. Some of these candidates got away with it.

Others, however, got caught, some during the interview process, and others after being hired. They had not factored in the network that hiring managers and HR directors have for checking resume accuracy, validity of references, and overall character of applicants. Yes, the days of full disclosure by former employers are gone, but many employers are still willing to answer some of the questions posed by hiring companies. After all, the favor will often be returned.

But reasons for telling the truth go far beyond the risk of getting caught. If you "tell it like it is" throughout your job search, you never have to remember any embellishments, you never have to fear that someone will "out" you, and, most importantly, you can feel good about yourself throughout the entire process. And feeling good about yourself can boost your self-confidence and enhance (honestly) your chances of success in those interviews. And that is reason enough to tell the truth.

Bettie Biehn, a career human resources (HR) professional, is now engaged as a freelance writer. Her published magazine articles address key HR issues, and she writes resumes from a hiring manager's perspective. Contact Bettie at bbiehn@careerchangecentral.com, and visit her website, www.careerchangecentral.com.


SAMPLING OF CURRENT ENGAGEMENTS

Dick Wray & Consultants is pleased to report that the demand for our service is strong.

The following list is a sampling of our current engagements.

1. RVP Marketing, Casual Dining Chain

2. Director/VP Operations, Family Dining Chain

3. Vice President of Franchise Development, Regional QSR

4. Regional Ops Director, Casual Dining, Mid Atlantic

5. Director/VP Franchising, QSR Southeast

6. DM, Casual Dining Chain, Mid Atlantic

7. District Managers, Area Directors, Quick Casual, Mid Atlantic

8. Purchasing Manager, National QSR, Southeast

9. Area Director, Casual Dining, New England

10. Director of Operations, Casual Dining

Referrals are the life-blood of our business. If you know of anyone who may be interested in one of these situations we would be happy to review their credentials.



 
 
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