Monthly Editorial

Written by Bob Gershberg, Executive Vice President of Dick Wray & Consultants

As we roll steadily into 2005 with a healthy perspective on both the economy and the restaurant industry, growing our businesses is the mission of choice. The only proviso - grow them wisely! The movement of many highly regarded industry CEOs of late has heightened our attention to the art of building the team. And as is the case with so many aspects of the restaurant business, developing the team is clearly an art and not a science.

Great leaders develop a distinctive culture in short order creating a trickle down which is something to behold. Passion begets passion as momentum trumps challenge. The magic of growth propels an organization to levels of incredible accomplishment when the team is in sync. Our industry is flush with folks who are at their very best when they've a bit more on their plates than one can typically handle. Building the team so as to stay a touch ahead of the growth without creating unwarranted fiscal pressure and worse yet human complacency is a balancing act only the best can master.

People are our greatest asset. We are well advised to match talent to the required competencies and skill sets, but greatness is attained when we fit those who share the vision, embrace the mission and grow with us each day. Be mindful of the fact that people like what they are good at and are good at what they like. Give them the power to soar!

I recently asked a CEO of a national company which was rapidly losing its luster and regularly experiencing declining comps, "When was the last time your team high-fived each other at the end of a weekly meeting?" The question, though not intended to be rhetorical remained unanswered.

If you are charged with leading... lead well!

All the best,

Bob

Bob Gershberg, Executive Vice President

bob.gershberg@dickwray.com

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

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. Senior VP Development, West Coast

2. VP Operations, West Coast

3. VP Franchise Development, Southeast

4. RVP, Food Service Management

5. VP Finance, Southeast

6. VP Human Resources, West Coast

7. VP Market Development, Northeast

8. Director of Purchasing, West Coast

9. VP Marketing, Northeast

10. Director of IT, West Coast

Referrals are the lifeblood 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.

By: Bettie Biehn

Put the Good Stuff First

One thing I've discovered with most of my resume clients is that they are reluctant to brag about themselves, about their skills, accomplishments, promotions and awards. Now, professional modesty is just fine in certain circumstances, but when it comes to your resume, you have every right....and every reason....to brag. After all, if you won't do it, who's going to? Who is going to tell that prospective employer about your not only meeting, but exceeding, every sales goal for the last 5 years? And how will that hiring manager know that you've been promoted 6 times and given progressively more responsibility with each job? If you don't do it, no one will.

So, your resume needs to tell your story, and convince that employer that he wants to talk with you, and perhaps hire you.

If you've followed this column these last few months, you know that I've harped on always telling the truth; using fewer words but those with some "punch"; crafting differing resumes for different positions/employers/industries and customizing each one; contemplating who will write your resume; and ensuring that your resume is as error-free as possible.

My next tip for you, and a point I hammer home each time I make a presentation on writing excellent resumes, is "put the good stuff up front." By this, I mean make sure that the things you MOST want that employer to see are located on the first page of your resume, and as close to the top of the page as possible.

There are many schools of thought on what type of resume works best, but I believe the type of resume used depends on the person, the position, the employer and the industry. For the most part, however, I much prefer a functional, i.e. skills-based, resume that starts with a brief career summary or career objective (depending on where you're headed - one looks back, one looks forward). Following the introductory paragraph, I then head straight for the skills my client wants to highlight. Then I list accomplishments, achievements, awards and anything that demonstrates how well my client uses these skills.

At this point, I do get into a chronological listing of past employment, then education, professional certifications, affiliated organizations, et al. And while all of this information is essential, and provides backup for your skills and accomplishments, remember: you have very little time, usually less than a minute (some say 30 seconds), to convince the initial resume screener to take a second look, and perhaps extend an interview invitation. So, once again I say "Put the good stuff up front!"

If you only have 30 seconds to make your mark, make sure you highlight what YOU consider most important, and those skills that you WANT to use in your next career.

Bettie Biehn, a career human resources (HR) professional, is founder and president of Career Change Central, LLC, a premier resume writing and career coaching business. Bettie is also a freelance writer, and her published magazine articles address key HR issues. Contact Bettie at bbiehn@careerchangecentral.com, and visit her website, www.careerchangecentral.com.

Ilene on Health...Corporate Wellness Solutions

By: Ilene Gershberg

Feel The Burn... on your next annual meeting!

Planning an organization's annual conference is an enormous undertaking. The goal is usually to meet the professional needs of as many of the attendees as possible. The programs are carefully chosen to contribute expertise, energy, growth strategies and motivate action. Often the themes and speaker topics are selected both from within the organization's industry, and additionally chosen around subjects or issues that critically affect professional performance levels. This article addresses today's business challenge of health/productivity management and why health and fitness should be at the top of your list when planning your conference in 2005 or 2006!

8 Reasons to include health, fitness & the ‘hottest' corporate wellness news at YOUR conference agenda:

1- We all realize the key to long-term health and sustained weight loss is to change our lifestyle. My clients often tell me they know ‘what to do', but will readily admit that they have not mastered the ‘how to' part. Professional women and men of today will spend 50% of their waking hours at work for a period of 40-50 years. Executives build their lives around these work schedules. When they return home from work, the demands of family responsibilities typically leave personal fitness goals out in the cold. Hard working adults need the ‘how to' help.

2- This health issue is no longer just a personal issue of priorities and discipline. Statistics such as this have created a business concern that can no longer be ignored: "Obesity costs employers more than $13 BILLION annually and adversely affects the quality of life and health of their workers."

-Institute on the costs of Health Effects of Obesity

3- Health care costs have doubled in private business from 1990 to 2001 and it is estimated they will double again by the year 2012. These costs are threatening the ability of US businesses to compete in today's corporate arena. (1)

4- The indirect costs of poor health appear to be 2-3 times higher than the direct medical costs. Current research on health productivity management sites critical losses due to:

*Reduced output (presenteeism)

*Higher absenteeism

*Increase in accidents and mistakes on the job

*Higher attrition rate

*Lower quality of products and services

*Higher disability rate

5- The good news is...According to several recognized sources sited through the Wellness Council of America, corporate wellness is now documenting a 3-5 X return on each $1 invested. This investment is performance driven, not cost driven. It enables businesses to invest in protecting, supporting and enhancing their human capital.

6- Increasing health risks of our employees drives the health care costs upward to unmanageable levels. The new objectives are not only to minimize the risk of disease, but also to maintain and improve the already healthy employee. Studies have demonstrated that companies can save approximately $350 per employee each year, by keeping the healthier employees in the low risk category. (2)

7- Healthy people tend to be happier people, contributing to a more positive moral in the workplace. Positive energy is contagious and this healthy spirit once assimilated into corporate culture is very powerful. Add this component to your conference and it will charge up attendees and motivate them to achieve their best life.

8- Addressing these issues at the conference level can enable organizations to have much greater impact, reaching out to large numbers of people at one time, and therefore increased success in developing business support strategies for health productivity management.

There has never been a better time to educate and influence your organization members on the cost benefits of maximized productivity, lowered health care costs and improved employee retention. Building a competitive and dynamic business in today's global marketplace means providing the support system for a ‘healthy team'.

Protect your organization's greatest asset...its people!

References

1. Hewitt Associates, LLC Employers report significant health care concerns and are looking for new solutions. Health Care Expectations: Future Strategy and Directions - 2004. Lincolnshire, IL. Hewitt: 2004

2. University of Michigan Health Research Center. The worksite wellness benefit analysis and report. 1979-2004; 7-15.

For corporate wellness solutions at your next conference: Contact Ilene on Health on-line at www.IleneonHealth.com

Ilene L. Gershberg is an executive health and fitness expert, professional speaker and corporate wellness consultant. Ilene works with organizations and businesses on worksite strategies for health/productivity to maximize profitability!

Financial Support Services, Inc. ("FSSI")

Andrew Peck, President of FSSI has spent over 30 years in financial planning, specializing in business planning, financial reporting and controls, and budgeting. Financial Support Services, Inc. ("FSSI") is a consulting company that specializes in developing business plans, funding packages, project profitability analysis, real estate feasibility studies, budgets, and financial controls for existing, emerging, or startup companies in need of capital or increased profitability. After completion of the Business Plan or Funding Package, they assist their clients in obtaining funding. FSSI will send the Business Plan or Funding Package to a number of business associates that are funding sources. They will also work with their clients during negotiations and the due diligence period.

Capital can be raised in a number of ways including loans, joint ventures, investor or investor groups, or by going public. FSSI will help a client evaluate their choices. To raise capital a company must have a Business Plan and a clear understanding of its direction. FSSI will help a company develop its Plan and a direction that will lead to success.

FSSI creates customized plans. They do not use canned programs or preset layouts. Their Business Plans are designed to attract lenders and investors who review countless proposals that compete for funding.

Every company needs sufficient capital to operate and grow, whether the company is a start-up, is currently operating, or is an emerging entity. FSSI has relationships with Investment and Merchant Bankers, Private Investors, and Venture Capitalists. They have associates that can prepare Private Placement Memorandums or can take a company public through an Initial Public Offering.

Learn more about FSSI - visit their web site at financialsupportservices.com

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Michael Allenson of Technomic Inc., a Chicago-based food consulting firm stated in a recent article in The Wall Street Journal that parents with kids are the biggest spenders overall in restaurants. It was noted that those families spent 39% more than the national average on food away from home in 2003, the last year tabulated. And, according to a 2004 National Restaurant Association survey, more than 40% of restaurant owners said they expect takeout business, driven largely by families with children, to increase in 2005. With this increase in family dining, some chains are instituting changes that will include more and healthier menu options. In a push to increase their sales, chains see an even bigger stake in charming families on their sit-down visits.

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The following statements were recently listed in a QSR Magazine article on the subject entitled, "What does it take to prosper as a small chain"?

They define the terms of competition in the markets where they compete. Independent restaurants, small chains, chains of equal size, and larger chains must compete against the standards they set. The consumers within their markets use these standards to judge all other operations.

They have a compelling value proposition. This could be specific to the customers of the concept but stronger if there is a meaningful value proposition for all stakeholders including employees, vendors, and the communities where the operations are located. They are value-creating organizations that create value in multiple directions.

Their competitive advantage is based on uniqueness and excellence in several dimensions. They do bet the whole ranch on being superior with just one food item, one service standard, one pricing strategy, etc. The points of excellence are combined into a culture and production system that is almost impossible to duplicate.

They have built a strong brand. The concept's brand represents more than just the products and service, the brand represents additional values such as excellence, trust and safety.

They have a world-class human capital management system. All organizations are truly defined by those who choose to be part of the organization. To win, succeed, and thrive, you must field a winning team, day after day, year after year.

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It is amazing how much time and money companies spend on attracting new customers versus keeping their existing ones. Marketing departments spend a lot of time reviewing customer purchasing habits, trends, industry metrics and they use comparative analysis to determine whether they are winning the battle or not. It may be more effective if these companies went directly to their customers, on a regular basis, and asked them for feedback or what they think about the products and services they are receiving. This method might be the most accurate and cost-effective source of information provided to a business not to mention that it works to build loyalty and a better company-customer relationship.

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Restaurateurs can navigate obstacles such as smoking bans, sluggish sales and escalating insurance costs with creative solutions. Renting out a stretch limousine to accommodate smokers who need to step outside, paying employees a cash incentive to stay healthy and turning extra space into a revenue generator are just a few solutions presently being offered at some restaurants.

FRANK SBORDONE was named chief executive of PETER PIPER INC., operator and franchisor of 141 pizza and entertainment units. He also is president and chief operating officer and succeeds NEIL R. SIMON, who remains vice chairman of Scottsdale-based Peter Piper's board.

JIM SKINNER, who became CEO last November at MCDONALD'S CORP., has expanded the role of McDonald's U.S. president RALPH ALVAREZ to president of the company's North American division to include the United States and Canada. McDonald's U.S. chief operations officer, JEFF STRATTON, was named executive vice president of the restaurant solutions group replacing DON THOMPSON. Thompson was promoted to executive vice president and chief operations officer of McDonald's U.S. units. President of McDonald's U.S. East division, TIM FENTON, was named president of the chain's Asia-Pacific-Middle East-Africa unit.

DICK SVEUM was named to the newly created position of vice president of franchise operations of THE MELTING POT RESTAURANTS INC., a 35-unit fondue restaurant chain. A 30-year veteran of the franchise industry, Sveum most recently was president and chief executive of Birmingham, Ala.-based Dreamland Holding Co. LLC, owner and operator of the Dreamland Bar-B-Que Ribs chain.

Based in Corpus Christi, TX, WHATABURGER INC., operator and franchisor of a 640-unit chain, announced that president and chief operating officer TIM TAFT was leaving the company. Taft's duties will be assumed by TOM DOBSON, Whataburger's chairman and chief executive and a member of its founding family. Also, chief development officer PRESTON ATKINSON was promoted to executive vice president and COO.

LOUIS J. PROFUMO was named chief financial officer and executive vice president by CHURCH'S CHICKEN, the 1,556 quick-service chain. He was recently CFO and treasurer of Avado Brands Inc., parent of the Don Pablo's and Hops chains.

GERALD W. DEITCHLE was hired as president and chief executive by BJ'S RESTAURANTS INC., parent of 35 casual-dining units. PAUL MOTENKO and JERRY HENNESSY, BJ's current co-CEOs, were appointed co-chairmen and remain members of the executive team. Dietchle most recently has served as president and chief operating officer of Fired Up Inc. and will remain on Fired Up's board. He was previously president of The Cheesecake Factory Inc., where he also was chief financial officer. Fired Up's CEO, NORMAN ABDALLAH, will reassume its presidency.

JEFF WARNE was named president and chief operating officer by CARLSON RESTAURANTS WORLDWIDE for its 100-unit PICK UP STIX division, based in San Clemente, Calif. replacing TIM PULIDO, who had been at the chain's helm since April 2003. Warne was executive vice president and chief operating officer of the international arm of Carlson's T.G.I. Friday's division. STEVE KING, formerly chief financial officer of Carlson Restaurants, replaces Warne as international chief at Friday's.

GREG BUCHANAN was promoted to president of LA MADELEINE BAKERY, CAFÉ & BISTRO the 64-unit fast casual chain. He replaces industry veteran WALLACE DOOLIN, who resigned as chief executive of Dallas-based La Madeleine last October to become chairman, CEO and president of Buca Inc., the troubled parent of Buca di Beppo and Vinny T's of Boston.

BEEF O'BRADY'S in Tampa, Fla., a rapidly expanding family sports pub brand, named NICK VOJNOVIC president. Formerly chief operating officer, Vojnovic will oversee franchise development, purchasing and marketing as well as operations in his new post. He succeeds CHUCK WINSHIP, who remains chief executive. Also, former vice president of franchise sales and operations, SCOTT TAYLOR, was named senior VP of corporate development, with oversight for franchise sales and operations, training, development and real estate. CHRISTINE CORSINI was promoted from purchasing manager to director of purchasing.

According to company officials, LITTLE CAESAR ENTERPRISES named DAVID SCRIVANO president, a post that had been unfilled for several years. The chain formerly was led by HARSHA AGADI, who held the post of chief operating officer, but he left the company in 2001 and was recently named president and chief executive of the Church's Chicken chain. Scrivano will report to CHRISTOPHER ILITCH, president and chief executive of ILITCH HOLDINGS INC., the parent of the Little Caesar chain. Scrivano believes "explosive growth" is the chain's future, especially in the Southeast and western states. Also, MICHAEL SCRUGGS, senior vice president, has moved on to become a Little Caesars franchisee.

CHUCK CHAPMAN was promoted to chief operating officer by INTERNATIONAL DAIRY QUEEN and will oversee the chain's 4,773 U.S. outlets, effective in September. He will replace current executive vice president and COO ED WATSON, who will remain on IDQ's board of directors when he steps down in September. Chapman currently is Dairy Queen's chief concept officer. MICHAEL KELLER, executive VP of marketing, assumed the new position of chief brand officer; JEAN CHAMPAGNE, executive VP and chief operating officer for Dairy Queen Canada, is now COO of Dairy Queen's international group, which totals 918 units.

RICHARD "DICK" MACEDONIA was appointed president and chief executive by SODEXHO INC. Macedonia will replace MICHEL LANDEL, who will become CEO of the food and facilities manager's Paris-based parent company, SODEXHO ALLIANCE NA, in September.

Former YUM! BRANDS INC. executive ANGY CHIN was hired as senior vice president and chief financial officer of ROBEKS FRUIT SMOOTHIES & HEALTH EATS CO., operator and franchisor of 64 smoothie shops. He replaces PATRICK HARPER.

DAVID BIRZON was appointed by PARADISE BAKERY & CAFE, operator and franchisor of 40 bakery-cafes in nine states, to the newly created post of chief operating officer. Birzon was vice president of operations. The company said it plans to open six to 10 new restaurants this year.

The board at PIZZA INN INC., a 400-unit chain based here, named its second acting chief executive in a month, ROBERT B. PAGE, as acting CEO. Page replaces ROD MCDONALD, Pizza Inn's secretary and general counsel. On Dec. 14, the Board named McDonald to replace RON PARKER, whom it had dismissed after a little more than two years in the post.

ELISABETH RAND was named the executive director of the DISTINGUISHED RESTAURANTS OF NORTH AMERICA, or DiRoNA, a nonprofit association of fine-dining restaurants. She replaces HOLLY KOENIG, who will continue to work at DiRoNA as senior management liaison.

JEAN BIRCH has been named president by BRINKER INTERNATIONAL INC. of its 220-unit Romano's Macaroni Grill division, succeeding JOHN MILLER, who resigned. Birch joined Brinker in 2003 as president of the company's Corner Bakery Cafe concept after 12 years with Yum! Brands Inc. Also, Brinker named JOHN REALE chief operating officer for Macaroni Grill. Most recently, he served as regional vice president for the concept's Western United States operations.

The 793-unit Pizza Hut franchisee, NPC INTERNATIONAL INC., appointed JIM SCHWARTZ chief executive, replacing GENE BICKNELL, who will retain the title of chairman. Schwartz joined NPC in 1991 as vice president of administration and will continue to serve as president and oversee day-today operations.

Restaurant chains MCDONALD'S and YUM! BRANDS are rapidly expanding in China to compete in the acquisition of franchisees from the new class of promising Chinese business owners. China is one of the few large economies with lots of room to grow. The restaurant companies are recruiting and training the best of China's emerging entrepreneurial class with the goal of tapping their enthusiasm and capital to boost the number of McDonald's and KFC outlets in China similar to the way small business owners propelled the U.S. fast-food restaurant boom decades ago. With China set to impose newly standardized franchising regulations soon, the number of franchises is expected to grow and now franchises are more enticing to Chinese business people. Industry analysts expect McDonald's to have as many as 1,000 stores nationwide by 2008 and Yum is expected to build at least 300 KFC stores a year in the coming decade under the new franchise rules.

GROTECH CAPITAL GROUP and CHARLESBANK CAPITAL PARTNERS, two investment groups, have purchased the CAPTAIN D's seafood chain. According to Grotech, RON WALKER, a 20-year veteran at Captain D's will remain as president/COO.

BRIAN STUDDARD, a franshisee of CAPTAIN D's SEAFOOD RESTAURANT is on a mission to retool the look and feel of the restaurants to resemble a dockside seafood shack. According to Studdard, new prototype locations are smaller which lowers initial investment costs for potential franchisees.

RUBY TUESDAY will reintroduce its traditional portions in a new ad campaign after the chain's CEO said the move to downsize its portions last year had a direct link to a drop in sales.

JON LUTHER, CEO of DUNKIN' DONUTS says the chain is looking to expand its espresso line to include iced drinks and adding premium sandwiches to the menu.

According to industry research, even though tabletop presentation plays into a diner's experience, the size of the tableware and the shape of glasses can lead to increased consumption.

The founder of FLANIGAN'S SEAFOOD BAR AND GRILL and the Big Daddy's liquor stores, JOSEPH FLANIGAN, died last month from complications related to cancer at his home in Sea Ranch Lakes, Fla. at age 75.

A third unit of OLD HOMESTEAD, the steakhouse that made headlines several years ago with its $41 Kobe beef burger, is opening in Bethesda, Md., in April. The owner of the two unit chain is GREG SHERRY.

New York restaurant analyst, HOWARD PENNEY, of Friedman Billings Ramsey, has forecast that WENDY'S INTERNATIONAL's franchisees could roll out a breakfast program this year as the brand downplays its 99-cent menu. Penney also upgraded his rating on the chain's stock to "outperform".

KRISPY KREME DOUGHNUTS INC. told securities regulators it would pay $1,455 an hour to turnaround firm KROLL ZOLFO COOPER LLC for the services of STEPHEN COOPER and STEVEN PANAGOS as the chain's new CEO and president/COO, respectively. Cooper is also interim CEO of Enron Corp. and will be billing $760 per hour.

Operator and franchisor of the 701-unit bakery-cafe chain based in Richmond Heights, Mo., PANERA BREAD CO., said a new franchise group, led by GLENN OAKES, DAVID COBO and MATT COBO, had agreed to open 10 units in the California counties of San Francisco and Marin.

Last month, CHURCH'S CHICKEN, the 1,556-unit quick-service chain, terminated 20 of its 4,700 employees. The company said that the terminated employees will receive a severance package and outplacement assistance. According to president and chief executive of Church's, HARSHAV. AGADI, the staff reduction "will allow us to better meet our customers' needs and our company's financial objectives."

Dallas-based BRINKER INTERNATIONAL INC., entered a franchise development agreement with Louisville, Ky.-based ERJ DINING under which it would open 18 CHILI'S GRILL& BAR locations in Louisville, Lexington and Paducah, Ky. Brinker said that as part of the deal, ERJ Dining also will operate four existing Chili's units in Louisville and Lexington.

An agreement was signed between RUSSELL and JENNIFER HASKELL HARMS and D'ANGELO SANDWICH SHOPS, a 211-unit made-to-order-sandwich chain based in Dedham, Mass. to open four units in Orlando, Fla. marking the chain's reentry into the city after a three-year hiatus. The Harmses, who also operate two Taco Bells in Aruba, have formed KWIHI MANAGEMENT CORP.

The 45-unit CHARLIE BROWN'S STEAK-HOUSE chain was sold for $140 million by the private equity investment firm, CASTLE HARLAN INC., to New York-based TRIMARAN CAPITAL PARTNERS. Castle Harlan had purchased the Mountainside, N.J.- based dinner house operator from Restaurant Associates in 1997 for $50.4 million. Under the leadership of chief executive RUSSELL D'ANTON, Charlie Brown's annual sales have more than doubled, from $60 million to a projected $150 million for the current fiscal year ending in September.

In a case stemming from a 1999 drunk-driving accident that left 7-year-old ANTONIA VERNI a quadriplegic, a jury in Hackensack, NJ ordered contract giant ARAMARK to pay $75 million in punitive damages to the young girl and her mother, FAZILA VERNI, after earlier awarding them $60.5 million in compensatory damages. Even though the jury earlier found Aramark and DANIEL LANZARO, the driver, equally liable, Aramark was the sole entity held responsible for the punitive damages. The spokeswoman for Aramark, DEBORAH ALBERT, said its executives "are disappointed by the size of the award and we intend to appeal."

The operator and franchisor of more than 450 casual-dining restaurants worldwide, HOOTERS OF AMERICA INC., signed AUSTRALIAN ENTERPRISES LP to a franchise pact calling for the opening of an unspecified number of units in major Australian cities starting in early 2006.

A holding company, that through its subsidiaries is franchisor of the ARBY'S chain and operator of 235 Arby's restaurants in the United States, publicly traded TRIARC COS. INC., said it is negotiating to combine its Arby's business with that of RTM RESTAURANT GROUP, the quick-service sandwich brand's largest franchisee. If the deal is consummated, it would make Triarc the majority owner of the combined entity, which would operate more than 1,000 Arby's outlets.

Amid financial losses, a federal investigation into the company's accounting practices and a shareholder lawsuit alleging dishonest sales inflation, KRISPY KREME DOUGHNUTS INC.'s chief executive, chairman and president, SCOTT A. LIVENGOOD, stepped down. According to a statement by Krispy Kreme, the move was one of "a number of important actions to address the company's current situation." STEPHEN F. COOPER, chairman of KROLLZOLFO COOPER LLC, a New York-based financial and management consulting firm will replace Livengood as chief executive. Cooper simultaneously will continue spearheading scandal-ridden Enron Corp.'s reorganization as its interim CEO. JAMES H. MORGAN, who has served as a director at Krispy Kreme since 2000 and its vice chairman since last March, will replace Livengood as chairman. STEVEN G. PANAGOS, a managing director at Kroll Zolfo Cooper, was named president and chief operating officer.

With the completion of its purchase of CHEVYS INC.'s 106-unit Chevys Fresh Mex and nine-unit Fuzio Universal Pasta brands, REAL MEX RESTAURANTS INC. become the largest operator of full-service Mexican restaurants. Long Beach-based Real Mex, which purchased the chains out of Chapter 11 bankruptcy for $90 million, also operates and franchises 69 El Torito and 39 Acapulco restaurants. Real Mex appointed CHARLES RINK president of Chevys Fresh Mex. Rink will also remain of chief operating officer of Real Mex.

CHARLIE BELL died last month in his hometown in Sydney, Australia. Bell, who began working for McDonald's in Australia when he was 15 and who advanced to become the U.S.-based chain's chief executive before resigning last November for health reasons, was 44. Bell, who was diagnosed with colorectal cancer shortly after he succeeded Jim Cantalupo last April upon his death from a heart attack, had been MCDONALD'S CORP.'s president and chief operating officer before his seven-month stint as CEO. In a statement issued by the Oak Brook, Ill.-based company, JIM SKINNER, chief executive, said, "No matter what cards life dealt, Charlie stayed centered on his love for his family and for McDonald's."

Marking the Dallas-based chain's first unit openings in five years, LA MADELEINE BAKERY,CAFÉ & BISTRO, operator of 62-unit fast-casual restaurants, launched two new locations in Houston.

Blaming increased competition and a sluggish Midwestern economy, DAMON'S GRILL has closed 11 restaurants in metropolitan areas of Detroit; Columbus, Ohio; Pittsburgh; Minneapolis; Ashland, Ky. and Pensacola, Fla. Damon's, however, announced plans to add more than a dozen new restaurants this year. SHANNON FOUST, Damon's president and chief executive, said closing the underperforming units, 10 of which were franchised, is part of a broader strategy of building a strong brand.

Phoenix-based ROTELLI PIZZA & PASTA, a chain that franchises 30 Italian casual-dining restaurants, signed Phoenix-based MARVOS RESTAURANTS WORLDWIDE to a development pact calling for it to open more than 40 restaurants over the next seven years in the Phoenix area.

JUMP HIGHER LLC, the restaurant company of NBA legend MICHAEL JORDAN, plans to open two restaurants and a nightclub in the AQUA BLUE LUXURY CONDOMINIUM HOTEL RESORT AND SPA complex, a new development near the Las Vegas Strip scheduled to break ground later this year.

JEMM RESTAURANTS LLC, existing franchisee of FRIENDLY'S RESTAURANTS FRANCHISE INC., a subsidiary of the 535-unit FRIENDLY ICE CREAM CORP., said they had agreed to take-over operations of two company-owned locations in Elyria and Sandusky, Ohio and they also agreed to open four new units by 2010. Jemm is headed by MIKE STEIGERWALK, a former regional director of Friendly's Ohio, Pennsylvania and Virginia units.

HARRAH'S OPERATING CO. INC. and HOB ENTERTAINMENT, parent of the House of Blues chain, are slated to open the 10th House of Blues club-restaurant, at the Harrah's-owned Showboat, The Mardi Gras Casino in Atlantic City, N.J.

SODEXHO USA has been hired by the National Aeronautics and Space Administration's JOHNSON SPACE CENTER to manage its employee foodservice program. Valued at more than $10 million, the three-year contract includes two cafeterias, vending services and catering.

Tulsa, Okla.-based CAMILLE'S SIDEWALK CAFÉ, a 59-unit chain, signed a franchise agreement with Washington based businessman MARK FRANK to open six units in Spokane, Kennewick, Pasco, Richland and Yakima, Wash.

The 33-unit fast-casual bakery-cafe concept, BEAR ROCK FOODS INC., based in Cary, N.C., said franchisees are opening nine new locations and the chain expects to add a total of 20 new restaurants in 2005.

The founder of 853-unit AUNTIE ANNE'S PRETZELS, ANNE BEILER, has agreed to sell the Gap-based company to her distant cousin, SAM BEILER, its president. The sale is expected to close by March 31. Beiler would become the lone principal in the privately held company.

A lawsuit filed last year by a franchisee was settled by QDOBA MEXICAN GRILL and its parent, JACK IN THE BOX INC. The Denver-based fast-casual chain was accused of making illegal earnings claims in 2002 according to JAMES and SUSAN CHRISTOPHERSON, who had operated three Qdoba units in the Minneapolis area. They sued for damages exceeding $75,000 and alleged that none of their three units was making a profit, "contrary to Qdoba's pre-signing representations." They also accused Qdoba of having a design plan that was not in compliance with the federal Americans with Disabilities Act, which forced them to "extensively delay" the opening of their first unit.

According to the company, LUBY'S INC., operator of 135 cafeterias, said it had added its new wait staff program to 18 more restaurants. As part of the new program, the wait staff provides various customer services, including drink refills and table clearing. This program is now offered at 47 Luby's locations.

During the fourth quarter of 2004, CICI'S, operator and franchisor of more than 500 pizzerias, said it had signed 13 development deals to add 64 new units. The new units are slated to open in Florida, Indiana, Kentucky, Louisiana, Michigan, New Mexico, Ohio, Texas and Virginia.

The former president and co-owner of Philadelphia institution BOOKBINDER'S SEAFOOD HOUSE, SAMUEL COLEMAN BOOKBINDER III, died last month after suffering a heart attack. He was 69. The restaurant, which closed earlier this year, was one of the city's oldest dining establishments, founded in 1893.

According to published reports, the founder of BURGERVILLE, a 39-unit upscale sandwich chain, GEORGE PROPSTRA, died at age 90 in Vancouver, Wash. after his heart stopped. The family-owned Burgerville chain is a division of Vancouver-based THE HOLLAND INC.

AARON SPENCER, chairman of UNO CHICAGO GRILL, has sold a controlling stake in the company he founded to CENTRE PARTNERS, a New York-based private equity firm. With plans to double the chain's size over the next few years and rename its restaurants UNO CHICAGO GRILL, CENTRE PARTNERS picked up a controlling interest in UNO RESTAURANT HOLDINGS. The 400 to 500 restaurants will be a combination of company-owned entities and franchisees.

Local restaurants are building relationships with hotel concierges as a way to build their business. If a concierge receives a kickback for his recommendation, however, the hotel guest might not always get the best advice.

A tasty, yet nutritious meal with everything on the menu containing fewer than 475 calories is being offered by DARDEN RESTAURANTS' SEASONS 52 in Florida. According to Darden executive BLAINE SWEATT, "If the food wasn't good, it could be a 200-calorie dinner and people wouldn't care."

MCDONALD'S is testing order-entry technology from BIGARI FOOD ENTERPRISES that is designed to funnel quick-service restaurant orders through a remote call center. Other quick-service chains are also looking at the system as a way to speed order processing, increase accuracy and trim costs.

A new ad campaign at QUIZNOS SUB uses a milder approach and replaces the edgy advertising tactics used in the famed Spongmonkey commercials. A new ad features the gruff-voiced Baby Bob simply talking about the food.

In an interview with GlobeSt.RETAIL, LISA OAK, president of Subway Real Estate said that SUBWAY's aggressive expansion into international markets is driven by continued appeal of the product in the U.S. and abroad.

JACK IN THE BOX is placing more value in recruiting good employees and focusing on premium foods rather than deep-discount menus. Also, the quick-service chain is testing the JBX GRILL concept in San Diego, which sheds traditional vinyl booths for a more upscale, yet casual atmosphere.

SODEXHO spent most of last year preparing for the ULTIMATE DINING MARKETPLACE at Fordham University in the Bronx. Open since September in the McGinley Center, the Ultimate Dining Marketplace presents resident students a chance to experience a restaurant environment in a 5,000 square foot servery where most foods are prepared to order.

According to industry observers, several major burger chains are planning to perk up breakfast sales with the debut of premium coffee, omelets and new sandwiches. There is speculation that the segment leader, MCDONALD's, is planning to upgrade its coffee and BURGER KING, the nation's second-largest burger chain, is testing new morning sandwiches and platters. CARL'S JR. launches a new sandwich that features a beef patty topped with an egg, bacon, hash browns, cheese and ketchup.

Designed to separate itself from the competition by elevating the 500-plus-unit specialty coffee chain to a fast-casual café brand, GLORIA JEAN's GOURMET COFFEE debuted a new prototype in Mission Viejo, Calif.

KRISPY KREME's stock price has fallen considerably as a result of a federal securities probe, allegations of padded sales figures and the ouster of CEO SCOTT LIVENGOOD. Turnaround specialist STEPHEN COOPER will replace Livengood. The company went public in 2000 at $21 a share and the stock price soared to nearly $50 by the summer of 2003. In May 2004, Krispy Kreme issued its first profit warning. Then by fall, the Securities and Exchange Commission announced it was looking into some dubious accounting practices. News of restated 2004 earnings sent the share price tumbling to $10.15 and then it reached an all time low of $8.72 late January.

BAJA FRESH, a 300 unit Mexican fast-casual concept acquired by WENDY's INTERNATIONAL INC. has been struggling. Wendys of Dublin, Ohio, said last month that it would write down the value of at least $175 million in debt because of Baja. It said they will close nearly two dozen underperforming outlets in Charlotte, N.C., Atlanta, Tucson, Ariz. as well as some other cities and focus on new units on the East and West coasts. Wendy's executives, including Chief Executive JACK SCHUESSLER, attribute Baja's problems largely to poor site selection, complex cooking operations, escalating commodity and labor costs and the notion that Mexican food remains too exotic for the Middle American palate. However, analysts says that the root of Baja's problems lie in Wendy's failure to properly manage a fast-emerging brand amid intensifying competition.

Despite the fears associated with the mad-cow disease, many restaurateurs are turning to steak to boost their sales. Steakhouses are the biggest category of new upscale restaurants from San Jose to San Carlos with the recent opening of at least four steakhouses. ALEXANDER'S, scheduled to open this month in Cupertino, has a grill that can accommodate 50 steaks at once with a menu featuring a $100 Kobe beef dinner. HENRY'S in Menlo Park has started featuring steaks and diners can split a 40-ounce Prime Porterhouse steak for $72. According to Tim Zagat, publisher of the country's best selling restaurant guides, the renewed popularity of steakhouses is a nationwide trend. "In all the major cities, we have one-third more steakhouses than in 1990".

When chief architect of hamburgers for the HARDEE's fast-food chain, BRUCE FRAZER, was ordered to build a "bigger, better burger" by his boss, ANDREW PUZDER, the Monster Thickburger was created. According to Puzder, chief executive of CKE RESTAURANTS, INC., owner of Hardee's, "If I was going to survive, I needed to do things that people who weren't succeeding were afraid to do". Now he says, "we get thank-yous for putting out a burger that people can actually eat." Thickburgers have been healthy for St. Louis-based Hardee's even if they are not wholesome. Burger sales at the Hardee's outlets have climbed 20% since the introduction of the first Thickburger. Big burgers, however, are not confined to Hardee's. CULVER's, a Midwestern chain, has the Jumbo BaconButterburger Deluxe which has two beef patties, bacon, cheese, mayonnaise and pickles; BURGER KING offers the Double Whopper with cheese; and MCDONALD's CORP. has the Double Quarter Pounder with cheese.

His decision to do so was rooted in estate planning. He said, "I turned 74 in March, and I own so much of the company that for the sake of ensuring its going-forward tranquility, it seems to be the right thing to do." He added, "I love this company dearly and still have a pretty good equity position. I can still stay involved to ensure a smooth transition."

After spending six years utilizing his cooking skills at such famous restaurants as DANIEL and CHANTERELLE in New York, GUY SAVOY in Paris and Marc Meneau's L'ESPERANCE in France, ADAM PERRY LANG has launched a no-frills New York City Barbecue business, DAISY MAY'S BBQ USA. The new venture runs a counter-service location as well as satellite sales carts.

At a recent investor's conference, IHOP'S CEO, JULIA STEWART, summarized the company's approach to employee retention: "We don't look at turnover anymore," she said. After taking a long look at its workforce, the family-dining chain is convinced that losing experienced employees isn't necessarily a bad thing - if they are not performing. This is referred to as "calibration" and "20-60-20" by IHOP meaning that it divides its employees into three groups: the top 20%, middle 60% and bottom 20%. ROBIN ELLEDGE, IHOP's vice president of human resources, says "It is an up-or-out philosophy. We try to develop people to move up. Having said that, if they're incapable or unwilling to improve their performance we have terminated people in that bottom group". This approach, instituted a few year ago and applied to high-level employees will not affect store managers and eventually hourly workers.

Marking the first of 10 restaurants to be added to the upscale casual-dining chain's existing five-unit system of authentic pubs, IRON HILL BREWERY & RESTAURANT is preparing to open its sixth location in Phoenixville, Penn. The concept of Iron Hill was developed by KEVIN FINN, KEVIN DAVIES and MARK EDELSON.

Boosted by strong U.S. sales and the McDonald's chain's first full-year string of monthly same-store sales increases since 1987, MCDONALD'S CORP. posted corporate fourth-quarter profits that were more than triple year earlier results on a 10-percent jump in global revenues. The company also said it will explore a possible public or private spin-off of its Denver-based CHIPOTLE MEXICAN GRILL chain of 410 fast-casual units.

The release of WENDY's INTERNATIONAL's fourth-quarter results was delayed 12 days while it revised the accounting for its restaurant leases and subleases. Wendy's International said their actions were a response to similar revisions by several other restaurant companies and were based on new interpretations of accounting principles. They also said that they do not expect the changes to be material to its balance sheet, affect cash flows or alter the timing and amount of lease payments.

Reported first-quarter earnings indicated a 12-percent rise on a 10.5-percent increase in revenues at STEAK N SHAKE CO., operator or franchisor of 429 casual-dining restaurants.

For the fourth-quarter, COSÍ INC., operator of 92 fast-casual sandwich specialty restaurants, reported a 13-percent increase in revenues to $28.5 million, versus $25.1 million in the year-earlier quarter.

The operator and franchisor of a 150 fast-casual chain, RUBIO'S RESTAURANTS INC., reported fourth-quarter revenues of $32.7 million, a 7.1-percent increase from year-earlier results.

Operator and franchisor of 98 casual-dining restaurants, MAX & ERMA'S RESTAURANTS INC., said it plans to delist its stock from the Nasdaq National Market in part to cut costs, which had increased with the implementation of the Sarbanes-Oxley Act and other ensuing securities regulations and Nasdaq rules. The act imposed stricter rules for corporate financial reporting. The company said the proposed transaction would save it about $450,000 in the first year following deregistration and $350,000 on an annual basis thereafter, excluding the cost to repurchase fractional shares and transaction costs. Earnings of $1.1 million for fiscal 2004 were reported.

For the period ended Dec. 15, BUFFETS HOLDINGS INC. reported a second-quarter net loss of $1.4 million on declining sales and charges for the replacement of the company's chief executive, store closures, corporate staff cuts and the withdrawal of a planned public offering of income deposit securities.

FRISCH'S RESTAURANTS INC., the operator and franchisor of 119 Big Boy restaurants and licensee of 29 Golden Corral grill-buffet units, reported a 14- percent jump in earnings to $2.7 million on revenues of $67.1 million for the second quarter of fiscal 2005, ended Dec. 12.

Same-store sales decreased 3.8 percent for the four weeks ended Dec. 29 and 4.4 percent for the fourth quarter ended Dec. 29 according to RYAN'S RESTAURANT GROUP INC., the Greer-based operator and franchisor of approximately 350 grill-buffet restaurants.

For the five weeks ended Jan. 2, DARDEN RESTAURANTS INC. reported a 14-percent jump in same-restaurant sales for Red Lobster after the chain's same-store results fell 12 percent to 13 percent in the same period a year earlier. Same-store sales at Olive Garden rose 14 percent for fiscal December, after having risen 3 percent to 4 percent for that month a year before.

Despite a sales dip at its namesake chain, LONE STAR STEAKHOUSE & SALOON INC. said same-store sales at corporate units across all four of its brands had climbed 1.3 percent in its fourth quarter.

According to P.F. CHANG'S CHINA BISTRO INC. same-store sales had risen 2 percent at its P.F. Chang's China Bistro restaurants and 3.6 percent at its Pei Wei Asian Diner units for the fourth quarter ended Jan. 2.

Stating that strong seasonal food and beverage promotions and holiday gift offerings like the Starbucks Card had helped to increase sales in December, STARBUCKS CORP., operator and licensor of 8,949 coffee shops worldwide, reported an 8-percent increase in same-store sales at corporate outlets open more than 13 months for the five weeks ended Jan. 2.

For the four weeks ended Dec. 27, CKE RESTAURANTS INC., the operator and franchisor, reported same-store sales increases of 5.8 percent at its Hardee's chain and 8.4 percent at its Carl's Jr. brand.

The operator and franchisor of 2,829 pizza restaurants, PAPA JOHN'S INTERNATIONAL INC., reported a 2.3-percent increase in domestic systemwide same-store sales for the five weeks ended Dec. 26. Comparable sales rose 0.7 percent for the fourth quarter, also ended Dec. 26, and climbed 0.1 percent for the full year.

According to YUM! BRANDS INC., its chains' U.S. blended same-store sales rose 3 percent for the four weeks ended Dec. 25 — 5 percent at Taco Bell, 1 percent at Pizza Hut and 1 percent at KFC.

For the five weeks ended Jan. 2, WENDY'S INTERNATIONAL INC. said same-store sales fell 2.1 percent at U.S. company-owned namesake restaurants and between 2 percent and 2.3 percent at U.S. franchised units. Same-store sales rose 6.5 percent to 6.6 percent in Canada and 9.8 percent in the United States at the company's Tim Hortons chain.

New products and increased customer traffic helped offset inflation in tomato and beef prices at SONIC CORP., the 2,917-unit drive-in chain, who reported a 25-percent increase in net income for the first quarter of fiscal 2005, ended Nov. 30.

Because of accounting errors surrounding the company's repurchase of franchises, KRISPY KREME DOUGHNUTS INC., operator and franchisor of 440 doughnut shops, will restate financial results for its 2004 fiscal year ended last Feb. 1. The company said that the restatements would reduce Krispy Kreme's 2004 earnings by between $3.8 million and $4.9 million, or between 7 cents a share and 8 cents a share, a drop of between 6.6 percent and 8.6 percent from previously filed financial statements. KRISPY KREME DOUGHNUTS INC.'s lenders agreed to extend until March 25 the deadline for default on its $150 million credit line, the company said.

For the five weeks ended Dec. 25, OUTBACK STEAKHOUSE INC.'s domestic same-store sales at company-owned restaurants fell 1 percent a namesake units and 0.6 percent at the Bonefish Grill chain, but rose 3.2 percent at the company's Carrabba's Italian Grill chain. At Fleming's Prime Steakhouse, same-store sales increased 17 percent and increased 13.5 percent at Roy's.

For the fiscal first quarter ended Nov. 17, LUBY'S INC., operator of 135 cafeterias, reported a net loss of $1.2 million, or 5 cents per diluted share compared with a loss of $4.5 million, or 20 cents a share for the previous first quarter.

Some recent observations written by DAVID S. PALMER with UBS Investment Research are: (A) The key driver of WENDY'S stock, relative EPS, should accelerate in 2005 due to a number of things including the reversal of BAJA FRESH operating dilution and closing costs, a 2.3% currency benefit, and returning sales momentum at Wendy's US. (B) In Palmer's view, TIM HORTON'S makes up close to 50% of operating profit and warrants a premium multiple due to its franchised model. A detailed segment analysis takes into account Tim Horton's Canada and US long-term EPS growth power and points to a $44 PT. (C) Some investors of KFC US should be happy to see SSS ticked up to positive territory at +1%. Palmer believes that despite its diminishing portion of EPS contribution, KFC SSS declines limit YUM's multiple. (D) APPLEBEE'S reported SSS growth of -1% at company restaurants due to a 3% decline in traffic and a 2 pp cal. Drag. The company announced 4Q04E EPS guidance of $0.29, in-line with UBS and consensus estimates. (E) Palmer's group recently met with DARDEN management who felt confident that the RED LOBSTER turnaround was underway and that the prospects for the SMOKEY BONES brand were bright.

In New York, the PLAZA HOTEL, a 98-year old establishment, is scheduled to close by April and will be transformed into upscale condominiums, retail stores and a smaller hotel. According to the hotel's owner, ELAD PROPERTIES, the Plaza's restaurants, the OAK ROOM, the PALM COURT and the former EDWARDIAN ROOM, which was converted several years ago to ONE C.P.S., will reopen under different management and possibly with new names and concepts.

MARRIOTT INTERNATIONAL recently announced that they are planning to replace nearly every bed in seven of its chains. Slated for the most extensive upgrade is the Marriott chain where each king-sized bed will be getting 300-thread-count 60% cotton sheets, seven pillows instead of five, a pillowy mattress cover, a white duvet and a "bed Scarf" that will be draped along the bottom of the bed. Cost for the yearlong project is estimated to run $190 million. The bed upgrades come at a time when the hotel industry is experiencing an economic boom leaving hotels with extra cash to spend on improvements with most of the increase in travel coming from business travelers. Once the new beds are installed, Bill Marriott says he expects to be able to charge as much as $30 a night more in Marriott as research shows that people are willing to pay more for luxurious beds. HILTON, SHERATON, RADDISON and nearly every other major chain has upgraded its beds including such things as adding a new Sealy Posturepedic Plush Top Sleeping System or mattresses with a remote control device that pumps air in and out to allow each occupant to adjust the firmness of their side of the mattress. With hotel chains hesitant to reveal how often they wash the bedcover, Marriott hopes to top it's rivals with a pledge to wash its white duvets between each guest visit, an initiative the company will call "Clean for You".

In an effort to raise the ante in the competitive New England gambling market, FOXWOODS RESORT CASINO is planning a $700 million expansion, which will include an 825-room hotel and a 5,000-seat Las Vegas-style theater. Chief rival, MOHEGAN SUN, completed a $1.1 billion expansion, adding a 1,200-room hotel and 10,000 seat arena and in terms of revenue, the move put them into a dead heat with Foxwoods as the nation's largest casino. William Sherlock, chief executive of Foxwoods said, "Mohegan Sun's strategy has been to drive their top line and they've done a pretty good job at it. We've been more focused on the bottom line, now it's time to start driving our top line as well." In the past, entertainment has played second fiddle to that of Mohegan Sun because of their spacious amphitheater. Says Sherlock, "We plan to be more competitive now". Sherlock also believes that the New England gambling market can grow as large as Atlantic City's based on the similarity in sizes of the two regions. Three other Indian tribes have petitioned their state governments for casino-operating licenses as well but it could take several years before anything is finalized. According to Sherlock, "Our plan is to get well entrenched before those operations get going".