By Jim Osborn, President, Dick Wray & Consultants

What makes a great company? Jim Collins, author of the book, Good to Great, has analyzed what takes a company from good to great. It is a book that, in some cases, has become the operating strategy of progressive companies.

Some of the key components that make great companies are:

1. Having solid, dedicated, teamwork-building CEOs that understand the business, that have longevity, and motivate the organization to consistently achieving results. They tend to be low-profile CEOs, as compared to celebrity CEOs who tend to have their attention diverted and their ego in the way of teamwork.

2. After having the right type of CEO, the next most important thing is having the right people on the bus. Using the model of 20% outstanding employees, 60% good employees and 20% mediocre performers, it is time to get the poor performers off the bus. You can't move the bus forward without all the players being on board with you.

3. The key to solid, steady performance is referred to as the Hedge Hog effect. While the sly fox is running all over the place, trying different ways to attack the Hedge Hog, the Hedge Hog just curls up with its needles out, scaring the fox away. The Hedge Hog continues to make slow but solid progress, keeping the focus, in the forward direction.

4. The Good to Great companies operate with clear constraints, but they also give their people freedom and responsibility within the framework of the system. They hire self-disciplined people who don't need to be managed, and then manage the system, not the people.

Clearly, the ingredients of Good to Great make a lot of sense. We, at Dick Wray & Consultants, Inc., are committed to being a GREAT search firm dedicated to serving our customers over and above their expectations!

All the best,

Jim

Jim Osborn, President

jim.osborn@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. Director of Franchise Services, Southeast

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

11. Regional Operations Director, Midwest

Referrals are the lifeblood of our business. If you know of anyone who may be interested in one of these opportunities, we would be happy to review their credentials.

Does Unpaid Work Count?

By: Bettie Biehn

In my work with resume clients, I encourage them to look back on past work accomplishments, when they used skills they liked and used them well, when they felt good about work, and when they received kudos. While they're taking notes on this "homework assignment", I then add "This can include volunteer work, or things that you've done for friends and family, for which the only pay you received was ‘thank you'….as long as it is relevant to your career search."

This often brings a startled look from clients, who perhaps have never considered unpaid work as part of their resumes. But why shouldn't it be? In my experience, we often put as much, if not more, effort, energy, time, passion and skill into work we're doing for our parents, kids, friends, church, or charitable organization as we do at our paid jobs. And often this work has incredible results:

- a church remains open due to the skills of a member who is a CPA and helps church administrators develop and balance a budget;

- a museum gets a new wing because a dedicated and talented group of volunteers raise the funds;

- a state-of-the-art hospital emerges from the work of a tireless, skilled group of community professionals who believe in their mission; and

- children in need receive clothing, schooling and care because people know it's the right thing to do and they use their know-how, connections and skills to do it.

But for some reason, we have tended to discount this work because we weren't paid for it. But I find nothing different in work conducted without pay from work that comes with a paycheck. And often, the work of a volunteer comes from the heart, from a true passion for the goal. In my estimation, this work should assume its rightful place on the resume.

If your volunteer unpaid work is truly relevant to the positions that you're seeking, include it – noting that it is unpaid work. And the fact that you've volunteered your time, energy and talents to a worthy cause doesn't hurt your image in the eyes of that prospective employer!

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.

Building Your Food Service and Hospitality "Dream Team" - Part I

By: Dave Timmons

I love the Olympics, not just for the athletic competition but for the drama and the stories that surround it. Allow yourself to reflect back on some of your favorite Olympic memories. One of mine is from 1992 as the world was introduced to 'The Dream Team'. We all know why the U.S. Men's basketball team was dubbed 'The Dream Team': They were a collection of the nations finest college and, for the first time, professional players.

As a leader, can you imagine how coach Chuck Daly must have felt when he received that initial phone call? I imagine it went something like:

"Hey Chuck, we want you to coach our 1992 Olympic basketball team, and by the way Chuck, you can have any player in the country to help you."

WOW! Any player in the country! What would your current team be like if you could choose the best talent available right now? You would likely experience what Chuck Daily did. His Dream Team not only won every exhibition game, they continued to annihilate all eight Olympic opponents and capture the Gold medal. The average winning margin for all eight games was 43 points!

As you look at your current team or the team you're building, what would it take to lift them to Dream Team proportions? I believe it starts with a blueprint. Dream Team Leaders have a blueprint and clear vision of what his or her dream team should look like. What skills, talents, experience, attitudes, personalities, intelligence and energy would be required? Average leaders don't think about blueprints. They somehow feel they must accept the team they have, even when results are lacking. Dream Team Leaders know differently.

Dream Team Leaders have a greater sense of urgency to make their vision a reality. They do this by knowing the three types of people on every team and how to hire and manage them. See if you can recognize these three types on your teams:

1. THE TRAILBLAZERS - These are the people that always exceed their goals and even share their knowledge and expertise with others. They are clearly 'on board your train' and with the program. You never have to ask them twice to do something and they are always looking for ways to perform better. Every team has a few trailblazers and wish they had more. These are definite Dream Team members. But here's the sad news: You spend very little time with your trailblazers, due to their self-sufficiency. I think that's wrong. Dance with the one who brought you and they'll teach others to dance.

2. THE CLUELESS - The Clueless are just that! They don't even know what 'train to board'. They represent bad hires or people who were impressive in the interview but then 'quit and stayed' after being hired. These are obvious parasites on your team and most leaders find it very easy to 'free up their careers' due to performance issues. The Clueless must go!

3. THE UNDECIDED - These are people who can't decide if they want to be a Dream Team member or not. They express their indecision in the form of inconsistent performance. Sometimes they meet expectations but most of the time they underperform. They perform well enough when the pressure is on but slide when it is not. This group can be high maintenance and high frustration for leaders. They can also turn out to be Dream Teamers if lead properly.

Stay tuned for next month's issue, when I will share the secrets of 'Extreme-lining Your Dream Team' and give you proven techniques to manage these three types of people.

Dave Timmons is a Leadership Artist who helps people and organizations become BRILLIANT in the Art of Leadership. For more information on his programs, books, and music, please visit www.DaveTimmons.com.

ART GUNTHER has been appointed president and CEO of SHAKEY's USA, INC., operator and franchisor Shakey's Pizza. Gunther was past president of Pizza Hut where he was known as the father of the Personal Pan Pizza.

KAYE R. O'LEARY has been named chief financial officer of BUCA INC., operator of 106 Buca di Beppo and Vinny T's of Boston dinner houses. She will replace DAN SKRYPEK, who served as interim CFO since GREG GADEL resigned in December. Also, industry veteran MODESTO ALCALA has joined BUCA INC. as chief operating officer. He was president and COO of the full-service Copeland's Famous New Orleans Restaurants and Bistros; before that he was vice president of cafe operations for the 600-store Barnes & Noble chain.

CRAIG E. HERMAN was named by DENNY'S INC., operator and franchisor of 1,603 restaurants, to the newly created post of senior vice president of company operations, specifically Denny's 552 company-owned units. Denny's also named DAVID KAHRE and ERICK MARTINEZ senior regional directors of company operations for the West and East, respectively.

The JAMES BEARD FOUNDATION has appointed former Red Lobster president, EDNA MORRIS, as interim executive director. Morris, who said she has committed to serve in the position for up to 12 months, will work with the foundation's board in its search for a permanent director. Last year, the nonprofit foundation was shaken when Leonard Pickell, Jr., its former president, was charged with embezzling large sums from the organization. Morris said the organization's current board of trustees plans to resign as expected following its appointment of three new permanent trustees.

In Dallas, BRINKER INTERNATIONAL INC. said that WILSON CRAFT had resigned as president of its flagship Chili's Grill & Bar chain for personal reasons and would be replaced on an interim basis by TODD DIENER, Brinker's chief operating officer and former Chili's president. In addition, BILL SIMON has been hired by Brinker to fill the new post of senior vice president of global business development. Simon most recently headed Florida's state Department of Management Services as secretary. And, Brinker named MICHAEL DZURA senior vice president and chief operating officer of Chili's Grill & Bar, replacing SCOTT NIETSCHMAN. Dzura was formerly vice president of operations for KFC.

BURGER KING CORP. named chief executive GREG BRENNEMAN to the additional post of chairman. He succeeds RICHARD BOYCE, who remains on the Burger King board's executive committee.

RICK AKAM was hired by FIRST WATCH RESTAURANTS INC., as chief operating officer of the 52-unit, breakfast-through-lunch chain, which operates in nine states nationwide and is based in Bradenton, Fla. Most recently, Akam was COO of Raving Brand's Inc. in Atlanta, parent of the Moe's Southwest Grill and Mama Fu's Asian House chains.

BENJAMIN A.WAITES has been promoted to the newly created position of chief accounting officer by RARE HOSPITALITY INTERNATIONAL, operator and franchisor of 268 restaurants, including 218 LongHorn Steakhouses, 28 Bugaboo Creek Steak Houses and 20 The Capital Grille restaurants.

BOB THIESS was named by HAPPY JOE'S FRANCHISING INC., the franchise arm of the 65-unit Happy Joe's Pizza & Ice Cream Parlor Inc., to the newly created position of executive director of franchise development. Thiess was vice president of global development for Papa John's.

METRO MEDIA RESTAURANT GROUP's president and chief executive, JOHN TODD, assumed the additional title of chairman as MARK BROMBERG announced he was leaving the post to focus on his involvement in Irving, Texas-based Apex Restaurant Group. Bromberg will continue to head MRG's international franchising network.

JIM RIEGER was named president and chief executive officer of THE BISTRO GROUP, a 33-unit franchisee of the T.G.I. Friday's brand. He replaces JIM COMBS, who left to pursue other business interests. A 30-year veteran of the foodservice industry, Rieger was most recently serving as senior vice president of international business for Wendy's International.

NIGEL TRAVIS has been appointed by PAPA JOHN'S INTERNATIONAL INC., operator and franchisor of 2,829 pizza delivery units, to president and chief executive, replacing company founder JOHN SCHNATTER, who will remain chairman. Travis will be paid $730K a year and has a five-year employment deal that includes 200,000 stock options and the opportunity to capture an annual bonus of up to $1.4 million. Travis was most recently president and chief operating officer of Blockbuster Inc., where he was responsible for worldwide store operations, product and merchandising, development, marketing and Blockbuster.com.

The Miami Herald reported that Miami-Dade County commissioners approved a package of $5.38 million in incentives intended to keep BURGER KING CORP. from leaving Miami. Burger King Corp. is considering a possible move to Dallas or Houston to bring the company closer to one of its owners, TEXAS PACIFIC GROUP of Fort Worth, Texas, when BK's lease expires in the summer of 2007.

Chairman of LACKMANN CULINARY SERVICES, based in Woodbury, N.Y., THOMAS LACKMANN, died Feb. 24 after undergoing emergency surgery at age 74. The contract feeder has not yet named a replacement as chairman.

According to a recent published report, Arlington, Va.-based RED, HOT & BLUE, a 40-unit barbecue operator, won a decision in federal bankruptcy court in Raleigh, N.C. against former Chapel Hill, N.C.-based franchisee JAMES GROOT. Groot reportedly defaulted on $200,000 in royalty payments and advertising fees. Under the ruling, two of Groot's former locations would be transferred to SUGAR HILL BBQ LLC, a new Red, Hot & Blue franchise. Groot reportedly was allowed to keep one of the units on condition that he rename it JIM'S FAMOUS BARBECUE.

Federal prosecutors are investigating KRISPY KREME DOUGHNUTS INC. and will seek to interview certain former and current officers and employees according to the company. The operator and franchisor of 401 doughnut shops said it believes the investigation by the U.S. Attorney's Office for the Southern District of New York relates to the current formal investigation of Krispy Kreme by the U.S. Securities and Exchange Commission, which is probing the company's franchise repurchase accounting, in particular some franchised units that were owned by former employees or their relatives.

In a $30 million deal expected to close mid-April, EACO CORP., formerly the sole franchisee of the Ryan's Family Steak House chain, agreed to sell 16 restaurants it operates under the Whistle Junction, Florida Buffet and Ryan's names to BANNER BUFFETS LLC. Under the agreement, Banner Buffets will pay up to an additional $250,000 for each unit converted to the Whistle Junction brand by the closing.

CENTRE PARTNERS MANAGEMENT LLC, a New York investment firm, completed the previously reported purchase of UNO RESTAURANT HOLDINGS CORP. Founder, AARON D. SPENCE, will lead the 200-unit casual-dining operator with its new chief executive, FRANK GUIDARA.

BARNHILL'S BUFFET INC., a chain of 41 all-you-can-eat restaurants in seven states, was acquired by JEFFERIES CAPITAL PARTNERS, a New York-based private equity firm, and the principals of DYNAMIC MANAGEMENT CO. LLC. Dynamic's principals are BOB LANGFORD, the chain's new chief executive, CRAIG BARBER and BOB SPECK. Barnhill's new headquarters is in Nashville and the company said it would keep its former headquarters in Pensacola, Fla., with 20 employees, as a regional office.

Marking the French company's first review of hotels and restaurants in North America, MICHELIN said it will launch the Michelin Guide New York City 2006 in November. The guide is to provide ratings of approximately 500 New York restaurants and 50 hotels. The company said that as part of the evaluation process, Michelin's European and American inspectors will make anonymous as well as prearranged visits to restaurants and hotels in New York.

Development agreement between BD'S MONGOLIAN BARBEQUE and DAVE ULGENALP, managing partner of MONGRILL LLC, has been signed calling for him to open 14 units in Tampa, Orlando, Lakeland and Sarasota, Fla., by 2012. Ulgenalp is a franchisee of Panera Bread.

The operator of nine dinner houses, YARD HOUSE RESTAURANTS LLC, plans to open three new units in 2005. The Irvine-based company said it had gross sales in 2004 exceeding $62 million, a 42.2-percent increase from fiscal 2003.

According to published reports, P.F. CHANG'S CHINA BISTRO INC., operator and franchisor of approximately 115 P.F. Chang's China Bistro restaurants and 53 Pei Wei Asian Diner units, is developing a new restaurant concept. The prototype would debut in 2006 and is expected to be more upscale in price and atmosphere than the chain's current brands.

The 118-unit chain based in Seattle, TACO DEL MAR, has entered into a franchise agreement with MARION STAMPLEY JR. of San Francisco-based MTS VENTURES INC. The agreement is for the opening of four units over the next two months in the Dallas-Fort Worth area.

Four restaurant concepts have been selected to occupy the new Air Mall at the Baltimore-Washington International Airport. According to MARK KNIGHT, president of BAA MARYLAND INC., which is building 140,000 square feet of concession space at the airport, the outlets would be branches of national chains QUIZNOS SUB and VILLA PIZZA and two local concepts, CALIFORNIA TORTILLA and OBRYCKI'S. The terminal is undergoing a two-year refurbishment, and will resemble the popular Airmall built at Pittsburgh International Airport in the 1990s.

STARBUCKS CORP. has teamed with JIM BEAM BRANDS CO. to produce and market Starbucks Coffee Liqueur. Intended for the on-premise and retail markets, and stemming from a development and distribution agreement between Starbucks and Chicago distiller Jim Beam, the liqueur will be made with 100-percent Starbucks coffee. According to representatives of the partnering companies, the nationwide launch follows market tests in Denver and Austin, Texas, during which Starbucks Coffee Liqueur generated strong consumer demand at restaurants, bars and retail outlets.

According to PEOPLE REPORT, a Dallas human-resources firm that recently released its 2004 Survey of Unit-Level Employment Practices for the Food Industry, turnover rates for restaurant managers and hourly workers may be on the rise again after appearing to bottom out following three years of steady decline. According to JONI DOOLIN, People Report's founder and chief executive, hourly workers' annual turnover was 111 percent in 2003, 124 percent in 2002 and 144 percent in 2001. The turnover rate for hourly employees is forecast to be 111 percent for 2004 as well.

Operator and franchisor of 1,186 restaurants, IHOP CORP., signed agreements under which franchisees would open 56 restaurants over the next seven years in California, Illinois, Kentucky, Michigan, Missouri, New York, North Carolina, South Carolina and Tennessee. A five-year veteran of the IHOP system, franchisees DAVID RELLER, agreed to develop five restaurants over the next five and a half years in Chattanooga and Knoxville, Tenn. RICHARD SMITH, an IHOP franchisee for the past 28 years plans to open six IHOP units over the next six years in Raleigh and Durham, N.C.

In what it said were efforts to increase shareholder value, Sherman Oaks, Calif. based WORLDWIDE RESTAURANT CONCEPTS, the parent of the Sizzler and Pat & Oscar's brands, completed a seven-store sale-leaseback transaction that generated about $16.1 million. They sold seven Sizzler restaurants to CRICSTEAK LP, an investment partnership owned by CRIC CAPITAL LLC in Boston, and then leased them back.

A contract to operate two toll plazas on the Indiana Toll Road was awarded to HMS HOST CORP. The 10-year pact is expected to generate an average of $6 million in annual revenue. President and chief executive of HMS Host, JOHN J. MCCARTHY, said the plazas will feature outlets of the Burger King, Starbucks Coffee, Uno's Pizza, Fresh Attractions and Travel Mart brands, the latter being HMS Host's convenience store concept.

According to QDOBA MEXICAN GRILL, the 195-unit fast casual chain, franchisee NADYA SHIHADEH, owner and operator of the franchising company ZAYTOON LTD., had agreed to open Qdoba restaurants in Findlay, Bowling Green and Lima, Ohio.

An agreement between Middletown, Del.-based R.R.C. RESTAURANTS INC. and FRIENDLY'S RESTAURANTS FRANCHISE INC., a subsidiary of FRIENDLY'S ICE CREAM CORP. has been signed calling for it to expand the 535-unit chain by opening three Friendly's units in New Castle County, Del., by September 2008.

To enhance growth, MARLIN ALEXANDER INC., the six unit franchisee of CICI'S PIZZA, entered into a deal valued at $1.1 million with Scottsdale, Ariz..-based GE COMMERCIAL FINANCE, FRANCHISE FINANCE. Under the deal, Marlin Alexander would acquire two CiCi's Pizza stores and open one new location, all in Virginia.

JOSEPH S. CASPER, chief executive and chairman of 78-unit CASPERS CO., the largest MCDONALD'S franchisee in Florida, died at the age of 62 after a battle with cancer. Casper opened his first McDonald's in 1969 with his father, whom he bought out in 1976 when the company began an expansion push.

With plans to open its first new restaurant since 1999, SHELLS SEAFOOD RESTAURANTS INC., a 25-unit casual-dining chain, acquired a Clearwater Beach waterfront property — formerly a Leverock's Seafood House — which it intends to renovate and open as a Shells Seafood location by the end of the first quarter.

Turnaround firm KROLL ZOLFO COOPER LLC, or KZC, will be paid $400,000 monthly by KRISPY KREME DOUGHNUTS INC., as it seeks to return the operator and franchisor of 401 doughnut shops to profitability. The monthly payments include the previously reported $760 and $695 hourly wages, respectively, for KZC executives STEPHEN F. COOPER and STEVEN G. PANAGOS, who last month were named Krispy Kreme's chief executive, and president and chief operating officer, respectively.

A Beaverton, Ore. Borders bookstore is among six Oregon branches of the chain scheduled for debuts of their converted proprietary cafes as SEATTLE'S BEST COFFEE outlets, part of a licensing deal with the Seattle-based STARBUCKS CORP.-owned subsidiary to rebrand more than 400 Borders cafes nationwide.

Las Vegas based co-owner of the BORGATA HOTEL CASINO & SPA in Atlantic City, N.J., BOYD GAMING CORP., said famed chef-restaurateurs WOLFGANG PUCK, BOBBY FLAY and MICHAEL MINA will launch outposts next year at as part of an expansion of the 2,002-room property. They will join 11 others already operating at the Borgata, which opened in 2003.

Operator and franchisor of 435 doughnut shops, KRISPY KREME DOUGHNUTS INC., said it would reduce its workforce by 25 percent to save $7.4 million annually. The company said that the staff reductions will come from Krispy Kreme's corporate, mix plant, equipment manufacturing and distribution facilities, and a cash restructuring charge of $600,000 will be recorded in the current first fiscal quarter. A corporate airplane also will be divested to save $3 million annually.

Recent published reports state that DOMINO'S PIZZA's chairman and chief executive, DAVE BRANDON, is considering joining the race for governor of Michigan in 2006. Reportedly, Brandon received attention from the state's Republican Party as a possible gubernatorial candidate. A spokesman for the industry's second-largest pizza chain, in response to the reports, said, "Dave Brandon is the CEO of Domino's Pizza and is committed to being the CEO of Domino's Pizza."

A recent announcement by LANDRY'S RESTAURANTS INC., the casual dining, hotel and entertainment venue operator based in Houston, said Landry's plans to buy the landmark Golden Nugget casino and hotel in downtown Las Vegas from POSTER FINANCIALGROUP INC.. The acquisition is expected to close within the next 12 months subject to regulatory approval. Landry's agreed to pay $140 million in cash and assume responsibility for $155 million in senior secured notes due in 2011 as well as certain other liabilities.

ROTELLI PIZZA & PASTA signed a development deal with MARVOS RESTAURANTS WORLDWIDE for the Phoenix market. Under the agreement, Marvos would assist the 30-unit, Coconut Creek-based pizza chain with franchising throughout the Phoenix area. Marvos plans to open the first franchised Rotelli location in the area during the third quarter.

Federal securities regulators have begun a formal investigation of BUCA INC., parent of 107 Buca di Beppo and Vinny T's of Boston restaurants, concerning possible lawbreaking in connection with rules governing internal controls and disclosures that related to the resignation last May of JOE MICATROTTO as chairman and chief executive. Buca said an audit had determined that he had used company funds either for personal, unauthorized or improperly documented purposes. The company added said that the probe by the SECURITIES AND EXCHANGE COMMISSION involves the Micatrotto-initiated purchase of a villa in Italy in 2002, presumably as a Buca training facility, but whose title was recorded in Micatrotto and his wife's name. Buca stated it had "sought and received" Micatrotto's resignation after the audit and had obtained a transfer of the villa's title and recouped about $900,000 as the result of a separation pact in which Micatrotto agreed to make cash payments to the company and waive his rights to vested and unvested income from the company's stock option plan.

Operator and franchisor of approximately 701 bakery-cafe locations, PANERA BREAD CO., said former McDonald's operator STEVEN J. MORRIS had agreed to open 15 franchised Panera units by 2011 in Arizona's Maricopa, Yavapai and Coconino counties.

BARRETT T.B. INC., a nine-unit TACO BELL franchisee which operates as BARRETT BROTHERS MANAGEMENT, filed for Chapter 11 bankruptcy protection. The company said all locations would remain open and no layoffs were anticipated. According to court documents, the company owes its creditors nearly $22 million, including $1.4 million to Taco Bell Corp., and it lists $4 million in assets.

Saying they want "to fully leverage both the stronger consumer recognition of our flagship brand and the scale of the company," ORION FOOD SYSTEMS, franchisor and licensor of several quick-service concepts, changed its name to HOT STUFF FOODS.

According to the company's president and chief executive, PAUL SMITH, the former barbecue takeout and delivery operator, RAGIN' RIBS INTERNATIONAL, is in the process of reorganization following the closure of its only company-operated store and the pullout of a franchisee that changed to a different brand. He said the Ragin' Ribs group remains in active talks with potential franchisees, and its parent, PDC INNOVATIVE INDUSTRIES INC., is exploring several acquisitions.

Operator of 130 quickservice restaurants, TACO BUENO, selected Tulsa, Okla.-based U.S.BEEF CORP. as its first franchise partner. U.S. Beef, a franchise operator of more than 220 Arby's units, said it plans to open nine new Taco Bueno outlets.

The WOLFGANG PUCK GRAND CAFÉ at the Denver Pavilions closed permanently. The 11,000-square-foot restaurant was licensed by franchisee FIRST MERIDIAN MANAGEMENT & CONSULTING, which holds the franchise rights for Wolfgang Puck Express in Colorado, Arizona, Utah and New Mexico. According to First Meridian's vice president of operations, DENNIS DESLONGCHAMP, the restaurant was closed to allow the company to focus on growth of the Puck Express brand.

With plans to expand the 152-unit Rubio's Fresh Mexican Grill chain over the next three to five years, beginning in 2006, RUBIO'S RESTAURANTS INC. is targeting an annual new-unit growth of 10 to 15 percent. The Carlsbad-based company said this year the fast-casual brand will begin a multiyear redesign program aimed at upgrading the interiors and exteriors of at least 20 percent of the restaurants. The plan would be funded out of cash from operations and existing cash balances.

According to consulting and research firm TECHNOMIC INC., takeout sales at full-service restaurants in 2004 totaled an estimated $14 billion, approaching 10 percent of the restaurants' total sales. The Chicago-based firm indicated that over the past three years, takeout sales at full-service restaurants grew about 8 percent per year, roughly twice the rate of overall sales growth.

With the opening of four new locations last year, CLADDAGH IRISH PUB, a 14-unit chain, doubled its sales and is becoming a leading player in the small but growing segment of Irish- and British-style taverns in the United States. Claddagh owners say that their expanded fleet of 240-seat restaurants makes them a strong contender for freestanding sites in suburban lifestyle centers.

Co-creator of APPLEBEE'S NEIGHBORHOOD GRILL & BAR and still a major franchisee, BILL PALMER, is positioning his 5-year old UP THE CREEK FISH CAMP & GRILL brand for a national run at the casual-dining seafood sector. According to Palmer, deals are signed to develop 28 additional Up the Creek locations beginning this spring.

With a new look, an upgraded menu and a focus on franchise development, SIZZLER USA is poised for growth as it continues to do away with its all-you-can-eat buffet image. The chain says it will add a 300-seat branch in San Diego that would be one of the grill-buffet chain's largest restaurants and the first new Sizzler branch built by a franchisee in several years.

Operators industry wide are examining the effectiveness of their alcohol server training programs after a recent $105 million judgment was levied against ARAMARK CORP. in a case involving a 1999 drunk-driving accident. Even though many concessionaires are cautious in discussing the ruling, several feel that the huge financial award has given them reason to pause, especially as it underlined the phenomenon of escalating monetary penalties in drunk-driving-related lawsuits.

Believing that several of its quick-service and fast-casual concepts have the ability to compete with commercial restaurants, SODEXHO USA, has created a wholly owned subsidiary to franchise those brands outside of the on-site segment. Based in Allentown, Pa., the recently launched, THE RETAIL BRAND GROUP LLC, will seek franchisees for eight brands. DAMON LIEVER will serve as RBG's president.

In favor of a reward-driven program in which customers volunteer their opinions, JACK IN THE BOX has abandoned their mystery shopping program.

A PAPA JOHN's unit in Louisville, Ky. is the first in the pizza chain to test breakfast items including coffee, juice, pizza omelets and pastries. A similar program was tested at DOMINO'S PIZZA 20 years ago but a spokesman for Domino's said that they determined people wouldn't call for delivery early in the morning.

New menu items at YUM! BRANDS' leading chains are expected to drive growth in 2005. Some of the new items include "Dippin' Strips" at PIZZA HUT, a new spiced version of KFC chicken and a new chicken enchilada at TACO BELL.

Smaller coffee shops like CARIBOU COFFEE, JUAN VALDEZ CAFÉ and PJ's COFFEE each have their own approach to brewing up profits against the king of coffeehouses, STARBUCKS. Experts contend that the coffee business is still booming, with convenience stores getting in on the action, despite an expected decline in the growth rate of American coffee consumption.

A permanent menu feature, LightHouse Menu selections, is being added at all of RED LOBSTER's 670 locations. This feature outlines dishes' nutritional information. Also, the menu has been expanded to include details on more than 30 food items.

In order to promote its Chicken Selects, MCDONALD's gave away millions of the chicken strips in February, a promotion similar to one tried by BURGER KING with the launch of its new French fries in the late 1990's. McDonald's and other chains are promoting chicken offerings on their menus adding that annual American chicken consumption is up nearly ten pounds since 2000.

According to DARDEN RESTAURANT's, their SEASONS 52 fresh grill and wine bar is performing well, however, the concept is still in its test phase until a decision is made determining if it is "chainable" or not. A Darden official says, "We know there's a market for Seasons 2, but we're still not sure how real and deep it is."

The NEW JERSEY RESTAURANT ASSOCIATION as well as, other restaurant industry advocates, feel proposed legislation by several state legislatures proposing laws requiring restaurants and quickservice chains to publicly display nutrition and calorie information for their food "amount to over-regulations." Dale Florio said, "Our position is that the individual who is concerned about obesity should emphasize healthy lifestyle, personal responsibility, regular exercise and moderation."

An increasing number of upscale restaurants are practicing "same-side" seating for customers who want to dine more intimately. However, platonic pairs and business meals can disrupt those seating arrangements. In Seattle, the chef at CAMPAGNE, only allows same-siding on slower nights, since the restaurant can lose money when couples turn a four-top into a two-top.

In a move to steadily strengthen its brand, CRACKER BARREL OLD COUNTRY STORE, owned by CBRL GROUP, INC., is expanding its music-based marketing program. CHRIS TOMASSO, vice president of marketing for the company, says the chain recently signed two sponsorship deals to set the stage for even larger partnerships within the next six months.

In a recent press release, LARRY TATE, senior vice president of GOLDEN CORRAL, states that record franchise sales are driving the rate at which new Golden Corrals are opening. A total of 32 new franchise and company restaurants opened in 2004 and Tate reports that, "Interest in a Golden Corral franchise is even stronger now than it was a year ago." Tate said, too, "Our franchising team made a sale on the average of one every three business days in 2004, but the negotiations underway now could top that pace in 2005."

In a continuing effort to change the perception that their food is unhealthy, several fast food chains are now starting to sell entrée-sized fruit. WENDY's INTERNATIONAL INC. has gone nationwide with fruit bowls and MCDONALD's CORP. plans to sell a fruit-and-walnut salad starting in the spring. Also, IHOP CORP. is expected to introduce entrée-sized fruit plates for adults and smaller versions for children in May. The chains are also trying to keep the aging baby-boomer customers whose tastes have changed and are looking for more sophisticated fare.

STARBUCKS CORP. plans to serve lunch items in five new cities and breakfast items in at least 100 outlets this year and will eventually roll out music stations into half of its outlets in the U.S. Despite the moves into music and hot food, JIM DONALD, the company chief executive, says, "Coffee is still at the core of what we do every day." Restaurant-industry analyst for CIBC World Markets, John Glass, states, "I think the risk is really one of distraction. The focus has to remain primarily on the service of providing beverage and food service." However, Starbucks believes that it can get more profit out of its loyal following with this new merchandise.

YUM! BRANDS CEO, DAVID NOVAK, has set his sights on China and is using that country along with India and other big countries to create a fast-food dynasty that he hopes will eclipse all others by bringing in restaurants such as PIZZA HUT, KFC, and TACO BELL.

Steakhouses are continuing to thrive as new restaurants are opening up. Once catering to men, money and power, they now receive favor from women, too. Steakhouses today appeal to both business and romantic diners and have become the "in-place" for young people who like smart cocktails and romantic ambience as much as juicy steaks and great wines. Also, star chefs such as JEAN-GEORGES VONGERICHTEN of V STEAKHOUSE in New York and PRIME in Las Vegas and TOM COLICCHIO of CRAFTSTEAK in Las Vegas have joined steakhouse establishments.

With hopes to build their bottom line and possibly cultivate new markets for expansion, some small restaurants are using the Internet to sell goods that go far beyond the usual array of branded T-shirts and hats. The trendy Miami restaurant, TAKE BED, offers a variety of items (i.e., skimpy women's underwear) relating to the establishment's practice of serving customers in bed, often with strangers. Owner of UNCLE JACK's STEAKHOUSE in Manhattan and Bayside, WILLIAM DEGEL, expects merchandise sales on his Web site to support his growing franchising effort. Last year, he sold $100,000 of steak sauces, steak knives, fresh steaks and others items on his Web site. Degel says, "Sauce is a great means of P.R. Just selling that, I've had so many inquiries from people wondering when we might open an Uncle Jack's near them."

As T.G.I. FRIDAY's turns 40 years old this month, the restaurant chain is undergoing an ambitious makeover, with $160 million in store renovations, major menu revisions and a manager-retention program that earns the best in the bunch a Rolex. RICHARD SNEAD, chief executive of parent company, CARLSON RESTURANTS WORLDWIDE, says "This is about the revitalization of the Friday's brand. We feel like we're just warming up, but our strategies are working. We're going to just keep hammering away at it." The efforts appear to be boosting sales; company sales in 2004 were up nearly 8%.

Executive turnover is increasing in restaurants, an industry known for high turnover among servers and kitchen help. A survey conducted by BEAR STEARSN COS. showed a surprising number of senior-management changes at major restaurant companies. By their count, four new chief executives, eight presidents (or managers at the CEO level) and five chief financial officers have moved into those positions in the past year. At least 17 companies including some of the biggest ones, MCDONALDS's CORP., BURGER KING, YUM! BRANDS INC. and STARBUCKS CORP. had top-level changes. However, there has not been a noticeable strategic shift at these companies due to executive turnover.

Many chain restaurants are making nutrition information available as some states are considering food-labeling laws for restaurants. Under a recent proposal in the New Jersey Assembly and pending in committee, chain and fast-food restaurants with 20 or more franchises would have to post calorie counts on menu boards, and more extensive nutrition information, such as trans fats and saturated fats, salt and cholesterol, on menus. Proponents of the proposal say that such information could lead diners to make healthier selections and would provide sorely needed information to those with health problems who need special diets. The New Jersey Restaurant Association believe that such proposals amount to over-regulation in an industry struggling to turn a profit.

Following a sales slump that coincided with portion cuts and calorie disclosures, RUBY TUESDAY is rolling out heavier fare. Chains nationwide are offering everything from "monster" burgers to Enormous Omelet Sandwiches by BURGER KING.

DARDEN RESTAURANTS believe that the popularity of its other brands will help fuel growth at their barbecue chain, SMOKEY BONES. Darden is growing Smokey Bones with television ads and opening smaller versions of the chain to reduce costs.

SUBWAY has unveiled a new ad campaign for their Fresh Toasted Subs. The campaign, with ads appearing on television, radio and the Internet, was created by Goodby, Silverstein & Partners.

As an alternative to changing their menus in an attempt to attract new diners, some restaurants are sprucing up their locations, changing their exteriors as well as adding artwork and new colors to the interiors of their locations. Others are changing their signage or remodeling their seating arrangements to give their business a boost.

A 14-percent rise in first-quarter operating income to $44.4 million on a 10-percent jump in revenue to $738.6 million was reported by JACK IN THE BOX INC., operator and franchisor of more than 2,000 quick-service restaurants. The company also operates or franchises 198 Qdoba Fresh Mexican Grill fast-casual restaurants.

Fourth-quarter earnings and revenues at PANERA BREAD CO. jumped 35 percent. The operator and franchisor of 741 bakery cafes reported net income of $14 million for the quarter ended Dec. 25, versus $10.4 million for the year-earlier quarter.

Because a quarterly report for the three months ended Jan. 2 had not been reviewed by an independent registered public accounting firm, BENIHANA INC. was notified by Nasdaq that the company's stock would be delisted from the Nasdaq stock exchange. DELOITTE & TOUCHE, Benihana's accounting firm, was unable to complete its review because of recent corrections in lease accounting. The company said it has requested a hearing on the delisting and expects to be in compliance with all applicable Nasdaq rules by the time of the hearing.

A 27-percent surge in fourth-quarter profits to $27 million on a 10.5-percent increase in revenues to $478.5 million was reported by DOMINO'S PIZZA INC., operator and franchisor of 7,757 pizza delivery units.

The operator of 516 Cracker Barrel Old Country Store restaurants and gift shops and operator and franchisor of 141 Logan's Roadhouse units, CBRL GROUP INC., reported a 14-percent jump in second-quarter profits on an 8.9-percent increase in revenues, versus year-earlier results. Comparable-restaurant sales for the five weeks ended Jan. 28 fell 0.6 percent at Cracker Barrel Old Country Store family-dining chain and comparable-restaurant sales at Logan's Roadhouse rose 1.9 percent as its average check increased 4.1 percent.

As a result of decreased same-store sales and operating margins at its 587 Bob Evans family restaurants as well as high hog costs at its sausage products business, BOB EVANS FARMS INC., posted third-quarter earnings that were 57 percent lower than those of the year before.

A net fourth-quarter loss of $135.7 million as a result of a $1.64-per-share charge for a goodwill write-down on its Baja Fresh Mexican Grill chain was reported by WENDY'S INTERNATIONAL INC. Excluding the write-down and despite slumping sales at its namesake brand, Wendy's reported a preliminary pro forma profit of 44 cents a share for the quarter ended Jan. 2, versus 56 cents a share for the year-earlier quarter. Revenues from the company's Tim Hortons chain were $298 million for the quarter and $990.6 million for the year. Revenues from Baja Fresh and Wendy's 70-percent owned Café Express fast-casual concept were $52.3 million for the quarter and $206.7 million for the year.

For the five weeks ended Feb. 6, U.S. same-store sales at WENDY'S INTERNATIONAL INC. rose 0.5 percent at company-owned namesake restaurants and between 1.4 percent and 1.6 percent at franchised units.

Reporting a nearly 15-percent drop in fourth-quarter earnings, OUTBACK STEAKHOUSE INC., blamed those results on weaker-than expected sales at its 881-unit namesake chain, higher tomato prices, a $1.6 million contribution to Florida hurricane relief efforts and about $1.2 million in carrying costs for the former Chi-Chi's properties acquired last October and now under development by the company.

Versus the fourth quarter of 2003, BUFFALO WILD WINGS INC. has more than doubled its fourth-quarter earnings on 32-percent-higher revenues. The operator and franchisor of approximately 306 Buffalo Wild Wings units recorded net income of $2.6 million for the quarter ended Dec. 26, versus earnings of $1.2 million in the year-ago period.

Operator and franchisor of 255 casual-dining units, RED ROBIN GOURMET BURGERS INC., reported a 30.5-percent increase in fourth-quarter profits saying results could be restated because of changes in lease accounting that are affecting companies throughout the industry.

The nation's second-largest operator of casual-dining seafood chains, LANDRY'S RESTAURANTS INC., is changing the way it accounts for leases. The company said it had not determined whether corrections to its accounting will be made as a cumulative adjustment in 2004 or as a restatement of one or more previous years.

Topping 2003 results by more than $600 million, MCDONALD'S CORP. generated a record $3.9 billion in cash from operations in 2004, the company said. The surge was attributed to higher sales and profits at existing restaurants. For January, worldwide same-store sales at its namesake chain had increased 5.2 percent in January. The operator and franchisor of more than 30,000 burger restaurants said global systemwide sales for the month were up 8.3 percent, or 6.3 percent in constant currencies.

For the first quarter of fiscal 2005, ended Dec. 31, ARAMARK CORP., the food and facilities management services provider, reported a nearly 8-percent increase in net income, on an 11-percent increase in revenues, compared with the year-earlier quarter.

In Overland Park, Kan., APPLEBEE'S INTERNATIONAL INC. reported a nearly 2-percent rise fourth-quarter earnings to $23.6 million, but said it may restate results because of a change in lease accounting. For the three months ended Dec. 26, the operator and franchisor of 1,682 namesake restaurants posted a 9-percent increase in revenues to $271.3 million, bringing fiscal 2004's corporate revenues to $1.11 billion, up 12 percent for the year.

Third-quarter earnings at NATHAN'S FAMOUS INC., operator and franchisor of 358 units under the Nathan's, Miami Subs and Kenny Rogers Roasters brands, doubled its on a 16-percent increase in revenues than the year-ago period.

For the four weeks ended Jan. 30, DARDEN RESTAURANTS INC. reported an increase of 4 percent to 5 percent in the Olive Garden chain's samestore sales, but said those of Red Lobster had fallen 8 percent to 9 percent, versus year-earlier results for the period.

Following the lead of other restaurant companies, DOMINO'S PIZZA INC., announced a change to its lease accounting that will result in added expenses of $2.8 million, or 3 cents per share, for fiscal year 2004.

Aided by lower preopening expenses for two units launched in the quarter versus three opened a year earlier, CHAMPPS ENTERTAINMENT INC., operator and franchisor of 62 casual-dining restaurants, posted a 20.5-percent year-to-year increase in operating income for the second quarter. Champps' net income was $2.7 million, or 20 cents a share, for the quarter ended Jan. 2.

For the third quarter ended Jan. 2, BENIHANA INC., operator and franchisor of 92 restaurants, booked a 20.2-percent increase in operating profit to $8.7 million on a 6.6-percent rise in revenues to $50.1 million.

A 9.8-percent rise in fourth-quarter net earnings was reported by YUM BRANDS INC. to $235 million, or 77 cents a share, and credited strong international sales and lower interest and tax rates for offsetting slippage in U.S. profits.

The operator and franchisor of 107 barbecue restaurants, FAMOUS DAVE'S OF AMERICA INC., said it had entered into a new five-year revolving credit facility for $10 million with Wells Fargo's AMERICAN COMMERCIAL CAPITAL.

STARBUCKS CORP. announced it would restate three years of financial results, reducing retained earnings in the 2002, 2003, and 2004 fiscal years by $12.6 million because of errors in the way it accounted for leases.

DAVID PALMER, analyst, stated recently that APPLEBEE's reported EPS of $0.29, in line with consensus and UBS estimates. However, G&A spending was $0.01 per share higher than expected, offset by a lower-than-expected tax rate.

After a four-year slump in luxury travel, HILTON HOTELS CORP. is planning to launch a major expansion of its little-known CONRAD chain of luxury hotels. Conrad will be in direct competition with top-dollar rivals like FOUR SEASONS and RITZ-CARLTON. Presently, Conrad has only 17 hotels world-wide and Hilton is planning to boost the number to 50 with new hotels already underway in Las Vegas, Tokyo, Dubai, United Arab Emirates and Phuket, Thailand. According to Hilton, this plan will give the 17 million current members of HiltonHonors, the company's customer-loyalty program, something they have been asking for: an array of luxury hotels where they can earn and spend points. HARRY CURTIS, an analyst with J. P. Morgan Chase, said that strategy has worked well for rival STARWOOD HOTELS & RESORTS WORLDWIDE INC. Starwood offers its Sheraton and Weston loyalists their posh St. Regis chain.

In 2004, U.S. investors bought up hotel properties at a record $13 billion. According to a report by Chicago-based real estate services firm, JONES LANG LASALLE INC., last year a variety of investors from veteran owners in the hotel industry such as BLACKSTONE GROUP to newcomers such as computer mogul MICHAEL DELL, jumped into the hotel market paying an average price of nearly $118,000 per room. The hotel industry profits are expected to jump to $20.8 billion this year and $25.2 billion in 2006 according to BJORN HANSON, who heads up PricewaterhouseCoopers' hospitality practice. One of the hottest areas in real estate is hotels planning to convert rooms all or in part to "for-sale" residential units.

Driven by growth at its hotel and betting units, HILTON GROUP PLC said full-year net profit more than doubled. Finance Director of Hilton Group, BRIAN WALLACE, said revenue per available room in its hotels division has been increasing and expressed confidence Hilton would be able to drive room rates up.

JOHN ASCUAGA celebrated his 80th birthday recently and his world-renowned casino-resort, the NUGGET in Sparks, Nevada, created from a coffee shop with a dozen slots, turns 50 years old. The Nugget is one of the biggest, most successful and most recognizable resorts there is. Both the legacy of Ascuaga and the success of his casino are being celebrated this month during the Nugget's golden anniversary festivities. The Nugget's original owner, Dick Graves, sold the Sparks Nugget to Ascuaga in 1960 for more than $3.7 million with no money down. Ascuaga was a well-trusted man, and was asked to pay it off in 12 years. While growing the business physically and financially, Ascuaga paid Graves off in seven years. In discussing Ascuaga, DON CARANO, a longtime competitor in downtown Reno with his ELDORADO HOTEL CASINO and SILVER LEGACY RESORT CASINO said, "He's definitely a pioneer in the industry."

ARK RESTAURANTS, owner of a club in Las Vegas's VENETIAN hotel-casino, has signed a deal to turn the space into a nightclub operated by Vivid Entertainment, the nation's top adult movie producer. Authorities say that while some of Vivid's starts will be on the floors of the club, nudity and pornographic activity will be forbidden and they will conduct checks to make sure the club complies with regulations.

In a move that will reduce the company to nothing more than a name, WEMBLEY PLC announced the last in a series of asset sales. The Wembley, England, racetrack operators said it will sell its gambling operations in the United Kingdom and the U.S., which generated more than 90% of its profit. Chief executive, MARK ELLIOTT, said, "What will be left is a big pile of cash, which will be returned to shareholders." An conditional agreement by Wembley to sell its U.S. division (three dog tracks and a horse track) was made with BLB INVESTORS. BLB is Wembley's biggest shareholder with a 22% stake. Wembley said, too, that it would auction its U.K. gambling business.

Judge Judith Wizmur in Camden, N.J., who is overseeing the bankruptcy proceedings of TRUMP HOTELS & CASINO RESORTS INC., has turned down a request by equity holders that proposed a Chapter 11 plan competing with the one being pushed by the company. Under the company's plan, most of Donald Trump's equity stake would be diluted to a value of about a penny per share, just like minority shareholders. The judge has said that for now, equity holders may not put their version of a Chapter 11 Restructuring in public view.

By: Kevin E. Olmsted, Fine Wine Manager – Western U.S. Pacific Wine Partners

kevin.olmsted@pacwine.com

Wine has got to be the most subjective of all consumables that we put in our mouths. People don't just like or dislike wine, they find wines to be "a bit off", or "not quite varietally correct". Can you imagine talking about pizza like this? "You know, Jane, the pepperoni and tomato sauce on the latest Domino's release just isn't in balance, and their cheese seems a bit thin." Nonetheless, we all taste wine, we evaluate wine, we store wine until it is ready. No wonder wine is perceived by so many Americans as being intimidating because of the six senses and 8,000 words required to drink the stuff.

Without claiming to have a solution to this issue, I would like to posit a very simple, universal, and replicable method for everyone to examine wine. (By the way, no one HAS to examine wine. Just go with me.) If we are all looking through a common magnifying glass, we may actually understand each other. A couple of years ago, the most acute group of wine tasters I have ever met laid out a formula: Fruit, Earth, Wood. We can look for and find so many things in wine, but these big headings tend to cover most adjectives and provide a simple way to organize your thoughts.

Fruit seems to be the most commonly described element of wine. Here is where you need to challenge yourself to be specific. Does the wine smell and/or taste like white fruits, or red fruits? Within the realm of red fruits, is the wine light like strawberries, juicy and sweet like a plum, or dark and dry like currant? Are the fruits young and unripe and do they make your mouth pucker? Are the fruits older and dried and leathery? You can even picture the produce section of your favorite store to give you specific ideas.

The word Earth tends to cover a bit of ground. Start with the dirt part. Do you smell or taste mineral, sand, clay, flint, or dust? Then there are the things that grow in the Earth, like herbs and vegetables. How about must, cedar, tobacco, mint, tar, or roasted meat? Don't forget that flowers fall under this category, and floral characteristics tend to overlap with fruit aromas and flavors. How about wet leaves, salty air, or petroleum? All of these elements, and plenty more, will start to pop up in wine if you look for them.

The wood on a wine is a pretty fundamental element to look for. In the wineries of today, wine is either aged (or fermented) in oak or stainless steel. Stainless steel, being inert, adds nothing to the wine, and allows for more fruit character to show. Wood, on the other hand, can soften the wine and add characters like vanilla, caramel, and tannin. The amount of oak aging, the degree to which the barrels were toasted, and whether French or American oak were used is all up for guessing, but very few people on Earth can determine these things, and everyone else doesn't care.

This is just a rough framework of a tasting scheme, but by dividing your sensory analysis into Fruit, Earth & Wood, you can start to be consistent and simple. "Sweet, black cherry fruit, hints of mint and eucalyptus, and a nice vanilla oak flavor. Honey, call Domino's. I want some pepperoni pizza!"