Executive Connections Newsletter: Issue 60, MAY 2005
| DICK WRAY & CONSULTANTS - MONTHLY EDITORIAL
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Written by Jim Weber, COO of Dick Wray & Consultants It's Blogging Time For some time now we have understood the value of the Internet as it applies to our business; putting great people into great jobs. Resumes move via e-mail, as do proposals, contracts, background checks, and invoices. We have a web site and send a monthly e-letter to provide our clients and prospects important information about the industry in general, and our services in particular. Our opt-in subscription list is growing steadily in number and in diversity. Our readers are not just restaurant and hospitality professionals although that is clearly our core. It has become a useful tool for businesses marketing to the restaurant and hospitality industry. The speed offered by the Internet creates some very real and unique opportunities to stay very close to our customers. The e-letter published each month is more about history than it is about real-time actionable information. It is interesting and important, but still not up to the needs of an 'on-demand public.' It is no surprise that Web logs, or blogs have become so popular. Dick Wray & Consultants understand the value of this tool so soon we will have our own blog. As with any new initiative or tool we anticipate a certain learning curve as we search for the 'blog sweet-spot.' We hope that our readers will participate in this learning event, guiding us to the optimal mix of information, news, and promotional content. So, let's have some fun. Our vision is to provide real time information about our search assignments; to provide information on other searches that we may know of, but are not ours; and pass along useful information. Our launch plan includes: * We will send out a special email to announce it. * There will be a link to the blog on the website. * We will have a link and reminder in every e-letter. In the meantime, we would like to hear from you. What are your thoughts about our blog? What would be of interest to you? Do you have news to contribute? This is your opportunity to tell us how our blog can help you. So let the games or blogs, as it were, begin! "Dick Wray & Consultants - Maintaining the same ethical recruiting standards for over 30 years."
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| EXECUTIVE MOVEMENT
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AMIR SIDDIQI was named chief operating officer by CKE RESTAURANTS, of its 101-unit LA SALSA FRESH MEXICAN GRILL brand, replacing 19-year company veteran MICHAEL LIBY. Liby was named executive vice president for operations and training in March over all CKE brands, which include La Salsa, Green Burrito, Carl's Jr. and Hardee's. Siddiqi started with the company in 1985 as a crew person for Carl's Jr. and previously headed CKE's Green Burrito brand and also assisted Liby with operations at La Salsa. At the request of CENTERPLATE INC.'s board of directors, LAWRENCE E. HONIG resigned last month. Spokeswoman for the catering and facilities management services concessionaire, GAEL DOAR, declined to give a reason for the board's request. DAVID M. WILLIAMS replaced Honig as acting chairman of the company and JANET L. STEINMAYER, Centerplate president, took over as interim chief executive. LOUIS MELE was named president and managing director of MCDONALD'S RESTAURANTS OF CANADA LTD. He succeeds BILL JOHNSON, former president and chief executive, who retired. Vice president and general manager of McDonald's Baltimore/Washington region in the United States, DAVE ALLEN, was named chief operating officer of Toronto-based McDonald's Canada. P.F. CHANG'S CHINA BISTRO INC. named banker R. MICHAEL WELBORN to the new post of executive vice president chief administrative officer. RARE HOSPITALITY INTERNATIONAL INC. named WILSON L. CRAFT senior vice president of operations of the LONGHORN brand. POT BELLY SANDWICH WORKS named JOHN BETTIN, former president of Morton's Steak House as senior vice president and chief operating officer. JOSEPH KOHAUT, senior vice president of operations for Vinny T's, resigned to pursue other interests according to BUCA INC., operator of 96 Buca di Beppo and 11 Vinny T's of Boston dinnerhouses. A replacement was not immediately named. RANDALL LOPEZ was hired by RUBY'S DINER, a 38-unit chain based in Newport Beach, Calif., as vice president of marketing. Lopez, a 20-year industry veteran, has worked in marketing at Del Taco Inc., Buca Inc. and T.G.I. Friday's. STEVE CABLE has been hired by NOODLES & COMPANY, operator or franchisor of more than 100 fast-casual noodle shops as vice president of restaurant development. He replaces JOHN CRAIG, who left the company to take a position at Bank One. Most recently, Cable was senior director of construction and facilities at Wild Oats, a natural and organic supermarket chain. Also, he has worked for Metromedia Restaurant Group and Ponderosa Steakhouses. Shortly after winning a U.S. Bankruptcy Court auction to purchase 12 locations from Briazz Inc., a Seattle-based sandwich chain, ORGANIC TO GO hired MARK DOIRON as director of commissary kitchens and TOM ROGERS as sales manager. Doiron will manage Organic To Go's food production and product consistency and spent 18 years as director of Larry's Markets' central kitchen. He also will oversee kitchen development for the locations it purchased from Briazz in Washington and Southern California, which Organic To Go said it intends to convert to its own brand. Rogers, a veteran of the grocery and food product industry, most recently was an account executive with Eskimo Pie Frozen Distribution in Seattle. DANNY HIATT, general manager of the Wynfrey Hotel, in Hoover, Ala., was named the 2005 chairman of the ALABAMA HOSPITALITY ASSOCIATION. He will replace ROGER LEVA, owner and president of Knights Inn in Alabama. The AHA represents all lodging segments, attractions and tourist destination organizations as well as industry-related services companies. SPECIALTY RESTAURANTS CORP., whose 34 high-grossing dinnerhouse/banquet units in a dozen states nationwide boast aviation, mining or nautical themes and panoramic views has named veteran chain executive and entrepreneur VINCE KIKUGAWA as president. Kikugawa succeeds JOHN TALLICHET at the company. Most recently, Kikugawa headed The Food Dude, a multiconcept restaurant and hotel foodservice firm he founded that operates the upscale-casual Paradise restaurants in the Los Angeles area. WILLIAM MORETON was named to president and the newly created position of chief financial officer by POTBELLY SANDWICH WORKS. He is taking over some of the duties of founder and chief executive BRYANT KEIL. Moreton comes to Potbelly from Wendy's International's Baja Fresh subsidiary, where he was chief executive. A Michigan franchisee of 48 Wendy's and two O'Charley's restaurants, MERITAGE HOSPITALITY GROUP, appointed GARY ROSE to the new position of vice president, chief financial officer and treasurer. Most recently, Rose was an accounting executive with the Deloitte & Touche accounting firm. BRION GRUBE was named chief executive and president of the 300-unit BAJA FRESH MEXICAN GRILL chain of WENDY'S INTERNATIONAL INC. He replaces BILL MORETON, who is leaving Thousand Oaks, Calif.-based Baja Fresh to spend more time with his family. Grube was most recently chief executive of Wendy's 19-unit CAFe EXPRESS concept. Replacing Grube as president is BOB WRIGHT, who will replace Grube as president of Cafe Express and is a seven-year veteran of Wendy's. RUSS COOPER has been appointed president of CHESTER'S INTERNATIONAL LLC, a chain of more than 1,500 quick-serve restaurants, replacing TED GILES, who was named chief executive. Cooper most recently served for 10 years as senior vice president and general manager of franchising for Pittsburgh based General Nutrition Centers and held positions at Shoney's and Arby's restaurants. ED BARTHOLEMY was named as a partner and president of the company by PAUL FLEMING, chief executive of FLEMING'S RESTAURANT MANAGEMENT in Scottsdale, Ariz. Bartholemy was chief financial officer of the Mimi's Cafe chain. Former president of the New York City chapter of the New York State Restaurant Association, MICHAEL O'NEAL, New York restaurateur, was named chairman of KIDS INVOLUNTARILY INHALING SECONDHAND SMOKE, or KIISS, a nonprofit group that advocates smoke-free restaurant environments. Former Whataburger Inc. president, TIM TAFT, has been appointed by PIZZA INN INC., operator or franchisor of more than 400 restaurants, as its new president and chief executive. He succeeds Ronald Parker, who was fired by Pizza Inn last December in connection with litigation over employment agreements. MARK SCHWARZ, Pizza Inn chairman, said Taft "is exactly what Pizza Inn needs right now. He has clearly demonstrated his expertise in building a brand by overcoming the same set of challenges that Pizza Inn faces today." Promoting three executives, O'CHARLEY'S INC. named training and development director SUSAN WILLIAMS vice president of recruitment and training; product development director PAUL SCHRAMKOWSKI vice president of product development; and regional director MIKE MOLESTINA regional vice president. Upon the retirement of ORIN SMITH, JIM DONALD, who joined STARBUCKS CORP. in 2002 as president of its North America division, became president and CEO of the corporation. Donald also assumes Smith's seat on Starbucks' board. AMYAL ARCON has been named by ARBY'S LLC, operator or franchisor of 3,450 quick-service restaurants, to the newly created position of director of product development for Fort Lauderdale-based Arby's. Alarcon formerly was research and development director for Taco Cabana, a Carrols Corp. division.
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A tentative agreement was reached by TULLY'S COFFEE CORP., operator and licensor of more than 350 coffeehouses, to settle an unpaid overtime lawsuit filed against them by two former managers on behalf of themselves and past and current managers of the chain's California outlets to pay $1.45 million in cash, stock and legal fees which must be approved by the court. Officials at Tully's said the company "denies any liability" in the case.
Plans are being made to expand with a joint-venture partner casual dining concept called CARMELA'S OF BROOKLYN, launched earlier this year in Orlando, Fla., by privately held SBARRO INC. who operates/franchises more than 900 quick-service Italian restaurants. The unidentified partner, according to Sbarro's 10-K filing with securities regulators, would contribute half of the development costs and share equally in the profits.
WINGSTOP RESTAURANTS INC., a 400-unit chain, is planning to launch 14 restaurants in the Phoenix market. The first of three company-operated units is set to debut in June. JTR PARTNERSHIP INC.'s owners, JACQUI BREWER and TRACY HENRY, would operate 11 franchised units and plan to open their first unit in May. To develop the brand in Phoenix, Brewer and Henry sold two Wingstop units in Dallas to TODD MURRAH, who operates three units in the Dallas/Fort Worth market.
An area development agreement was signed between THE COFFEE BEAN & TEA LEAF and THE SULLIVAN FAMILY OF COS. to bring the Southern California-based specialty coffee chain's stores to Hawaii for the first time. There are plans to open at least 15 units over the next five years.
Rumors that the No. 3 burger chain, WENDY'S INTERNATIONAL, is looking to acquire the DUNKIN' DONUTS chain to merge it with Wendy's TIM HORTONS brand were downplayed by several Wall Street analysts. Wendy's said it is "not aware of any corporate development that would account for the trading volume or rumors" and Dunkin' declined to comment. There had been a recent surge in the trading and price of Wendy's shares.
Several Wall Street analysts believe that WENDY'S INTERNATIONAL could be the target of a leveraged buyout. Restaurant analyst STEVEN KRON of GOLDMAN SACHS in New York had noted in an April 20 report that Wendy's stock price had "risen 6.5 percent over the last two trading days in part due to market speculation of it being a potential LBO candidate."
At a cost of $6 million, CALIFORNIA PIZZA KITCHEN INC., the 176-unit chain based in Los Angeles, agreed to acquire the remaining 75 percent of a one-unit upscale restaurant in Manhattan Beach, Calif., LA FOOD SHOW INC. CPK paid $2 million in 2003 for a 25-percent stake. According to CHARLES PHILLIPS, CPK's lead independent director, LA Food Show offers the company a second growth concept.
According to a spokesman, WENDY'S is "exploring ways to evolve" its Super Value Menu by adding several new offerings priced above the traditional 99-cent price point. Wendy's is testing in undisclosed markets a $1.39 Smoky Cheddar Double Stack; a $1.19 Jr. Smoky Cheeseburger; low-fat, strawberry-flavored yogurt with granola, $1.29; and a $1.29 Fix n' Mix Frosty. Also, the chain has raised the price of its Jr. Bacon Cheeseburger from 99 cents to $1.29.
Plans were announced that LANDRY'S RESTAURANTS INC. will debut a new concept, a 10,000-square-foot restaurant and entertainment venue, in the Edwards Grand Palace Stadium 24 Cinemas in southwest Houston. The project is scheduled to open in the summer and would include a bar, lounge, billiard room and video game arcade and will be called HARLOW'S FOOD, FUN AND GAMES.
Operator or franchisor of 1,206 casual-dining restaurants, OUTBACK STEAKHOUSE INC., said it is re-evaluating the growth potential of some of its smaller brands and plans to focus on improving sales at its flagship chain. Outback's system includes 176 Carrabba's Italian Grills, 72 Bonefish Grills, 32 Fleming's Prime Steakhouse and Wine Bars, 19 Roy's, two Lee Roy Selmon's, three Paul Lee's Chinese Kitchens, and 14 Cheeseburger in Paradise restaurants in addition to 888 namesake steakhouses.
Led by BRUCE N. DAVIS, chairman and president of ELMER'S RESTAURANTS INC., ERI ACQUISITION CORP., completed its bid to take Elmer's private. ERI said it had purchased all outstanding common stock for $7.50 a share.
According to YUM! BRANDS INC.'s senior director of government and international affairs, BILL EHRIG, Yum has "taken a leadership role" with the FOOD TRADE ALLIANCE, or FTA, a Washington, D.C.-based lobbying group comprised of U.S. associations, retailers and restaurants that was formed earlier this year to lower tariffs and other international-trade barriers. Louisville, Ky.-based Yum has a large presence overseas with their KFC, Pizza Hut, Taco Bell, A&W and Long John Silver's brands. FTA leaders, including Ehrig, gathered with 30 other international groups to pressure the World Trade Organization to lower food tariffs. PAUL NATHANSON, FTA spokesman said, the groups, referred to as the Global Alliance for Liberalized Trade in Food and Agriculture, released a declaration calling on WTO member countries to support trade reform.
As part of an effort to modernize their brand, KFC CORP., a division of YUM! BRANDS INC., unveiled a new store design in Louisville, Ky. Before deciding to take the design national, the chain of more than 11,000 Yum-owned and franchised KFC outlets said it plans to open 50 more test units this year sporting the new look.
The co-founder of the 485-unit GOLDEN CORRAL, WILLIAM FOSTER CARL, died recently at the age of 63. Carl and JAMES H. MAYNARD opened their first grill buffet restaurant in Fayetteville, N.C., in 1973. In 1982, Carl retired from the Raleigh-based company but continued to serve on its board until 1996.
According to an article in the Florida Sun-Sentinel, BRIAN LICITRA, 27, a former employee of the BANANA BOAT RESTAURANT & LOUNGE in Boynton Beach, Fla. who was fired because of drinking problems, is suing the restaurant for serving him the day he crashed his car and injured himself and others while driving under the influence. The suit, filed in Palm Beach County Circuit Court, says that the restaurant knew Licitra had alcohol problems but negligently served him anyway.
A published report states that HARD ROCK INTERNATIONAL INC. is planning to open its first restaurant in India this September. Reportedly, the new location will be owned and operated by Indian restaurateurs JAI SINGH and SANJAY MEHTANI.
A subsidiary of the 535-unit Friendly Ice Cream Corp., FRIENDLY'S RESTAURANTS FRANCHISE INC., said KESSLER BUFFALO LLC have agreed to develop three Friendly's restaurants in the Buffalo, N.Y., area by September 2007.
An agreement to take the company private has been reached between QUALITY DINING INC., a franchisee of approximately 120 Burger Kings and 40 Chili's Grill & Bar restaurants, and QDI MERGER CORP. QDI, led by company chief executive DANIEL FITZPATRICK, previously owned 44.7 percent of outstanding stock and bought the remaining 6.4 million shares for $3.20 a share in cash.
Operator of The Original Soup Man restaurant in New York, SOUP KITCHEN INTERNATIONAL INC., signed its first franchise deal with Original SoupMan Canada to open 100 locations throughout Canada over the next seven years. Led by president and chief executive BRIAN MCASEY, an Ottawa-based lawyer, Original SoupMan Canada is comprised of a team of Canadian investors.
Chef AL YEGANEH, know as the "Soup Nazi" from the "Seinfeld" series, plans to open a chain of takeout soup stands across the United States. To date, deals have been signed by Yeganeh and his partners for 123 outlets with the first one scheduled to open this summer in Ridgewood, N.J. Within seven years, the group hopes to have 1,000 franchises at shopping-mall food courts and airports throughout the United States and Canada. JOHN BELLO, chairman of SOUP KITCHEN INTERNATIONAL, the 5-month old venture named for Yeganeh's original storefront restaurant in New York City, says "We really plan to take this whole concept international because Al is world-renowned." The soup stands will bear Yeganeh's Original Soup Man logo with is photo and signs will be posted bearing Yeganeh's strict ordering rules like "Have your money ready!" and "Move to the extreme left after ordering!".
A joint venture partnership was formed between HMS HOST EUROPE, the European development arm of foodservice concessionaire HMS Host and STEIGENBERGER GASTRONOMIE to provide food and beverage concessions at Frankfurt Airport in Frankfurt, Germany. Generating sales of approximately $12 million in 2004, Steigenberger Gastronomie, the airport food and beverage concessionaire subsidiary of Steigenberger Hotels AG, operates 19 food and beverage facilities at Frankfurt Airport.
The operator or franchisor of more than 3,450 quick-service restaurants, ARBY'S LLC, recently signed eight franchise agreements to open 13 locations, in Washington, D.C., Florida, Illinois, Ohio, Michigan, New York, and Texas. Houston-based franchisee, ZESTA FOODS, Arby's newest franchisee, would open one unit in Texas and MICHAEL SCHIAPPA, president of Palm Beach Gardens, Fla.-based SCHIAPPA FOODS CORP. agreed to open three locations in southern Florida.
APPLEBEE'S INTERNATIONAL INC. is planning to acquire 12 units from franchisee THE OZARK APPLES INC. According to STEVE LUMPKIN, Applebee's chief financial officer, "The addition of these restaurants will provide geographic and operations synergy to our existing base of company restaurants in Kansas City and St. Louis". Applebee's previously stated that it intends to acquire franchised restaurants as part of its growth strategy.
An agreement was signed between PANERA BREAD CO., operator or franchisor of more than 741 bakery-cafes and R&S BREAD GROUP to open 18 stores by 2010 with the first unit set to open in August. R & S Bread Group is led by STEVEN J. FRICKER, a 25-year veteran of the restaurant industry.
According to the State Attorney General TOM REILLY, former employees of GROUND ROUND who were owed final checks for wages and vacation as a result of last year's sudden closure of dozens of the chain's units by bankrupt parent AMERICAN HOSPITALITY CONCEPTS will recover the funds owed to them. Depending upon the work they did and what was owed for vacation, 430 former employees across Massachusetts should receive checks ranging from $2.46 to $4,173.43 and 341 Ground Round staffers were awarded $259,805 in back pay and expenses.
A statement released by PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS, or PETA, claiming that the quick-serve brand refused to change its chicken-handling methods, is "completely inaccurate" according to KFC. BONNIE WARSCHAUER, spokeswoman, states that the more-than-11,000-unit chain is continuing to discuss concerns about its chicken handling practices. She adds, "KFC is moving forward with measures to solidify its animal welfare standards and guidelines".
Last month, a $1 delivery fee was implemented and applied to all orders by DOMINO'S franchisee TEAM WASHINGTON INC., based in Washington. They own 59 stores in the area. DAVID CARRAWAY, Team Washington's president said the charge was implemented to cover the rising cost of cheese, gas, rent and insurance. Local Pizza Hut units have charged a delivery fee of about 75 cents per order for two years according to a chain spokeswoman.
BRAD MILLER, president of KOKOPELLI FRANCHISE CO. LLC says that they changed the name of its two-unit KOKOPELLI MEXICAN GRILL chain to KOKOPELLI SONORAN GRILL to "more accurately reflect the Sonoran fare our restaurants serve".
Plaster busts of the late POPE JOHN PAUL II were removed from the dining rooms that have a papal theme at BUCA DI BEPPO'S 90 restaurants, however, customers' complaints could force the company to reconsider the move. Customers reportedly complained that the restaurants' so-called "pope rooms" were without the centerpiece busts, which now could be returned to the restaurants. The Associated Press quoted Buca spokesman BOB KLEIBER as saying, "It didn't occur to us that people would be upset ... This has turned out to be a lightning-rod issue."
The 30-unit coffeehouse chain based in Lansing, Mich., BEANER'S GOURMET COFFEE, said it plans to add five outlets by July and expects to sign agreements with 16 additional franchisees by year-end. Some of the newest franchisees are TOM, STEVE and DAVE ANTAYA, who would open a unit soon in Portland, Mich., and JUDITH HENLEY, who is completing a Beaner's in Kalamazoo, Mich.
The 4-unit Chinese fast-casual chain, CITYWOK, based in Palm Desert, Calif., said franchisees had agreed to open five units over the next five years in southwestern Los Angeles County and parts of neighboring Orange County. The first unit is expected to open by early 2006.
As part of its new terminal expansion, ANTON AIRFOOD INC. obtained a 10-year foodservice contract from HARRISBURG INTERNATIONAL AIRPORT in Harrisburg, Pa., valued at $20 million. The Washington, D.C.-based airport foodservice concessionaire will open THE VARSITY GRILLE AND SPORTS BAR, a 4,500-square-foot sports-theme restaurant, and CAPITAL CAFe, a full-service bar under terms of the deal.
A five-year, $200 million contract to provide foodservice for MEMORIAL HERMANN HEALTHCARE SYSTEMS in Houston was awarded to SODEXHO INC., based in Gaithersburg, Md. Memorial Hermann is a health network that includes nine acute-care hospitals, three long-term acute-care facilities, three specialty care centers and a nursing home.
New franchisees for the multi-concept fast-casual player RAVING BRANDS have opened two of the 11 PJ'S COFFEE AND WINE BAR units in Atlanta that they committed to launch this year. Five operators are involved in the PJ's expansion, targeting Atlanta's northern suburbs.
Three company-owned units, in Findlay, Defiance and Maumee, Ohio were sold by FRIENDLY'S RESTAURANTS FRANCHISE INC., a subsidiary of FRIENDLY ICE CREAM CORP., to franchisee NRT RESTAURANTS. President of Waterville, Ohio-based NRT, NORM PERKINS, a 32-year Friendly's veteran, intends to open two additional units by 2010. Another two units were sold by Friendly's in Columbus and Mount Vernon, Ohio, to Centerburg, Ohio-based SIMPLER THYME HOSPITALITY LLC, which is owned by MARTY FIELDS, who has worked with Friendly's for 25 years, and his wife, JODY. A third refranchise agreement was signed with Mount Laurel, N.J.-based J3F3 to operate a unit in Marlton, N.J. JAMES YANUCIL, president of J3F3, owns and operates three Friendly's locations, in Mount Laurel, Moorestown and Voorhees, N.J.
Winners of the 2005 awards for outstanding performance and achievement in foodservice were announced at the WOMEN'S FOODSERVICE FORUM's Annual Leadership Development Conference in Orlando, Fla. Chief executive and founder of People Report, JONI THOMAS DOOLIN, was awarded the Trailblazer Award; ANGELA HORNSBY, vice president of human resources at T.G.I. Friday's USA, received the Emerging Leader Award; director of sales at Instill Corp., GRETCHEN SUSSMAN, was presented the Director's Award; and BILL GIESEL, chief operating officer of Rich Products Corp., and DAVID SMALLWOOD, vice president of multiunit accounts for Sysco Corp., were given the President's Awards.
A franchise agreement was signed between FAMOUS DAVE'S OF AMERICA INC., a 109-unit barbecue chain based in Minneapolis and Fort Meyer's, Fla.-based JP'S BAR-B-QUE LLC to open five Famous Dave's locations over the next four years in the Florida counties of Charlotte, Collier and Lee. JIM GYARMATHY, owner of JP's Bar-B-Que, also operates 11 KFC outlets in the state. Also, Barboursville, W. Va.-based REX INC., owned by FORREST "REX" DONAHUE and BARBARA DONAHUE, who operate Billy Bob's Super Wonderland in Barboursville, plan to open three Famous Dave's units in West Virginia over the next four years. Both agreements mark Famous Dave's entry into Florida and West Virginia.
Notice was given to Minneapolis-based BUCA INC., that a shareholder filed a "derivative action" lawsuit in Hennepin County District Court against four company directors for alleged breach of fiduciary duties in failing to correct or prevent problems with accounting and internal controls. Securities regulators are investigating Buca for potential lawbreaking involving disclosure and controls issues. RICHARD ERSTAD, an attorney specializing in corporate and securities law was named by Buca as general counsel and secretary.
The franchisee, AMERICANA GROUP, has debuted a restaurant in Amman, Jordan, and plans to open a second location there this summer according to HARDEE'S, the 2,047-unit subsidiary of Carpinteria, Calif.-based CKE RESTAURANTS INC. There are plans to launch an additional seven Hardee's units in Jordan over the next three to five years.
Local operator, LEVY RESTAURANTS, was hired by the CHICAGO CUBS to manage concessions at Wrigley Field. Levy, which has managed foodservice for Wrigley's Skyboxes and Stadium Club since 1986, replaces ARAMARK CORP. who had managed the concessions since 2000. Levy also manages premium-dining services at U.S. Cellular Field, home of the Chicago White Sox.
Completing a process it began five years ago, JASON'S DELI, the 137-unit chain based in Beaumont, Texas, said all 80 items on its menu are now free of partially hydrogenated oils and trans fats effective April 15. The company said that Jason's research and development department changed 47 ingredients that had contained partially hydrogenated oils.
To expand the brand in Iowa, Kansas, Nebraska and South Dakota, O'CHARLEY'S INC., which is operator or franchisor of 333 O'Charley's, Ninety Nine Restaurant & Pubs and Stoney River Legendary Steaks outlets, signed a franchisee to 10-unit pact. Under the deal, MICHAEL JOHNSON, a veteran of Four Star Restaurant Group LLC, Brinker International and Darden Restaurants, would develop the units over six years.
Alleging racial discrimination, VALENTINO LOPEZ, a Hispanic bartender at Yankee Stadium has sued the NEW YORK YANKEES, stadium concessionaire CENTERPLATE INC. and two of its managers. Lopez, who started working for Centerplate at Yankee Stadium in 1992, claimed that he and other Hispanic and African-American employees repeatedly were passed over for promotion by the Spartanburg, S.C.,-based company because of their ethnic backgrounds.
In business for 31 years, THE PASTA HOUSE CO., the 33-unit Italian full-service chain has debuted THE PASTA HOUSE CO. PRONTO!, a fast-casual Italian concept. With the opening of two of the units in the suburbs of St. Louis, where Pasta House is a local favorite in the casual-dinnerhouse field, J. KIM TUCCI and JOE FRESTA, co-owners, are searching for additional sites to open more Pasta House Co. Pronto! outlets.
In his first official move into the franchise market in more than a decade, the owner of THE PERFECT PITA, a three-unit chain of Mediterranean-inspired restaurants, has teamed up with FRANSMART, a franchise development company based in Alexandria, Va., in an effort to step up the expansion of its brand.
Known for its offering of as many as 250 draft beers, YARD HOUSE USA, operator of nine upscale-casual restaurants, is planning to launch a new, more downscale concept called YARD HOUSE BAR & GRILL and will be aimed at competing with chains like APPLEBEE'S and CHILI'S.
Next year, P.F. CHANG'S CHINA BISTRO is planning to open a new concept restaurant and will branch out into Japanese cuisine.
Owners of the nonprofit cooperative, DAIRY QUEEN OF THE PACIFIC NORTHWEST, will vote on whether to disband the group and enter into individual agreements with the franchisor which could mean that some of the group's operators would see higher royalty assessments in return for financial incentives and outside support.
Advanced technology now enables international franchisers to measure the risks of entering other countries using various matrixes. At a recent International Franchise Association convention, seminar panelist NED LYERLY, vice president, international, for CKE RESTAURANTS INC. in St. Louis, said he measures all new leads against an elaborate "market desirability index" that lists all the factors needed to open a successful CARL'S JR. or HARDEE'S fast food restaurant. Says Lyerly, "We look at demographics like age distribution - are there enough potential customers under age 30; education; income levels and purchasing power parity; and the country's cultural acceptance of Western products or services." Other facts that can be reviewed can include the quality of a country's roads, telecommunications and distribution systems, its labor and real estate costs and the stability of its government.
Seattle-based STARBUCK'S CORP. is continuously striving to improve the wait time customer's experience. With the addition of new hot breakfast items on the Starbuck's menu, speed of delivery is a key factor in staying ahead of the competition. SILVIA PETERSON, Starbuck's director of store operations engineering, says, "This is a game of seconds." Peterson, along with a team of 10 engineers is continually asking, "How can we shave time off this?" A survey last year conducted by MINTEL INTERNATIONAL GROUP LTD., a market-research firm, showed that 64% of Americans said they pick a restaurant based on how much time they have.
According to MCDONALD'S CORP. officials, rivals such as STARBUCKS CORP. and DUNKIN' DONUTS, are aggressively targeting consumers who prefer premium coffees. WENDY'S INTERNATIONAL is also considering a return to the breakfast market. In an effort to fight back, McDonald's recently introduced a more robust blend of coffee, simply called "premium" at its roughly 13,600 U.S. outlets and plans to test a variety of lattes, cappuccinos and flavored coffees this year.
YUM BRANDS INC., operator of TACO BELL, KFC and PIZZA HUT restaurants, is attempting to recruit other restaurants and food processors in joining a coalition to lobby for free food trade as the World Trade Organization's Doha Round of trade negotiations heads for a meeting in December. STARBUCKS CORP. and BURGER KING CORP. will not participate and fast-food retailers are leery of taking sides on controversial issues. However, WENDY'S INTERNATIONAL INC. says they might join and MCDONALD'S CORP. said it "currently" isn't a member of the lobbying group. The group is joining other business organizations in agreement from 15 countries to call on trade representatives to lower agricultural trade barriers such as tariffs. An assortment of tariffs and duties can hamper the ability of companies to find the least expensive ingredients for their worldwide operations.
At home personal chefs are on the rise. There are approximately 9,000 personal chefs in the United States serving 72,000 clients according to the AMERICAN PERSONAL CHEF INSTITUTE & ASSOCIATION. Executive director, CANDY WALLACE says, "Most clients are middle-class folks who are too busy to cook and are tired of eating take-out or in restaurants where the food is loaded with fat and preservatives." Clients include busy single professionals, families with two working parents, people with restricted diets, and increasingly, senior citizens who no longer can cook for themselves. Many personal chefs are retired restaurateurs, however, the flexible hours and growing demand is drawing a number of home cooks to join the business.
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OUTBACK STEAKHOUSE has cut average unit volume estimates for its BONEFISH brand. The casual dining giant now expects Bonefish AUVs to be flat for the remainder of 2005. Bonefish has grown from 42 units to 72 stores. According to the company, second-quarter profits at STARBUCKS CORP. jumped 27 percent on continued restaurant expansion and strong sales, earning $100.5 million, up from $78.9 million in the same period a year earlier. Same-store sales for five weeks ended April 3 rose 6 percent at company-operated units at STARBUCKS CORP., operator or licensor of 9,261 coffeehouses. At the end of April, KRISPY KREME DOUGHNUTS INC. told regulators that the company had extended the deadline for negotiating a "success fee" with the turnaround firm hired in January, KROLL ZOLFO COOPER LLC. Krispy Kreme and KZC agreed to extend the deadline until May 31, marking the second extension this year for an agreement on a success fee. For its first quarter ended March 27, BUFFALO WILD WINGS INC., operator or franchisor of 318 restaurants, reported a 6.5-percent increase in profits on a 26.4-percent surge in total revenues. Net income totaled $2.5 million, up from $2.3 million in the previous first quarter. For the 13 weeks ended March 30, BRINKER INTERNATIONAL INC., operator or franchisor of 1,557 restaurants, posted a net income of $55.1 million versus profits for the previous third quarter of $6 million, which yielded zero per-share earnings. A registration statement with the U.S. SECURITIES AND EXCHANGE COMMISSION was filed by RUTH'S CHRIS STEAK HOUSE INC., operator of 86 restaurants, for a proposed initial public offering of common stock. The company said it intends to use the proceeds to redeem securities held by WACHOVIA INVESTORS INC. and affiliates of MADISON DEARBORN, and to repay debt. The filing did not specify the size or value of the offering. Since 1999, CKE RESTAURANTS INC., operator or franchisor of 2,034 Hardee's and 1,014 Carl's Jr. restaurants, posted its first profitable fourth quarter and fiscal year on revenues that rose 11 percent for the quarter and 7.5 percent for the year ended Jan 31. For the four weeks ended March 28, same-store sales of CKE RESTAURANTS' Carl's Jr. chain increased 4.2 percent and fell 0.3 percent at the company's Hardee's chain. According to CKE, Hardee's comparable-store sales were hurt by a shift in the timing of the Easter holiday and bad weather in the Southeast. A 14-percent increase in first-quarter profits on record quarterly revenues of $268.2 million (a 22-percent jump) was reported by THE CHEESECAKE FACTORY INC., operator of 92 namesake casual-dining units and five Grand Lux Cafes. The company indicated that KRISPY KREME DOUGHNUTS INC. expects to report a loss for the fourth quarter ended Jan. 30 on a 16-percent drop in revenue and "substantial" costs surrounding the company's legal and regulatory problems. Krispy Kreme said it expects revenues for the fourth quarter to total about $153 million, versus $185.5 million in the prior fiscal year's fourth quarter. According to the company, BUCA INC., operator of 107 Buca di Beppo and Vinny T's of Boston restaurants, its lenders had waived the company's defaults under its credit facility, while amending the terms. It was agreed that Buca would pay a 2-percent-per-year increase in the interest rate on the $15 million term loan portion of its credit facility and would also pay the lenders a fee of $400,000 for the waiver and amendment. Because the company had failed to file its annual report on Form 10-K for 2004, GRILL CONCEPTS INC., operator of 24 upscale-casual and fine-dining restaurants under the Daily Grill and Grill on the Alley brands, received notice from Nasdaq that its shares would be subject to delisting. Saying it needed additional time to review its accounting for leases, Grill Concepts said it will file its 10-K before the deadline or request a hearing to stay the delisting. The operator of 77 casual-dining restaurants under the Fox and Hound and Bailey's brand names, TOTAL ENTERTAINMENT RESTAURANT CORP., reported a 13-percent increase in its first-quarter profits on revenues that jumped 16 percent, versus the previous first quarter. Versus the previous fourth quarter, DAVE & BUSTER'S INC., operator of 43 restaurant and-entertainment units, has reported a nearly 3-percent increase in its fourth-quarter profits on a revenue boost of 21.4 percent. A nearly 12-percent jump in first quarter revenues was reported by CALIFORNIA PIZZA KITCHEN INC., the operator and franchisor of 176 namesake casual-dining restaurants, to $110.3 million, versus $98.6 million in the year-ago first quarter. Same-store sales for DARDEN RESTAURANTS INC., owner operator of more than 1,350 casual-dining restaurants, climbed 9 percent to 10 percent at Olive Garden and 3 percent to 4 percent at Red Lobster for the five weeks ended April 3. For the company's fiscal 2005 first quarter, ended Jan. 27, VICORP RESTAURANTS INC., operator or franchisor of 378 Village Inn and Bakers Square outlets, reported a nearly 14-percent increase in operating profit to $10.2 million. Samestore sales for the four weeks ended April 4 at WENDY'S INTERNATIONAL INC. fell 5.1 percent at domestic company-owned namesake restaurants, following a 2.4-percent slide in February. Earnings for the first quarter for the operator and franchisor of more than 9,700 quick-service units is expected to be below last year's results owing to difficult sales comparisons, higher-than-expected beef costs, expenses associated with the rollout of its Wendy 's double-sided grill and costs for a new distribution center for its Tim Hortons division. Same-store sales for the four weeks ended March 22 at PANERA BREAD CO., operator or franchisor of more than 670 bakery-cafes, have risen 6.4 percent systemwide. For the four weeks ended March 30, same-store sales fell 2.9 percent at RYAN'S RESTAURANT GROUP INC., operator or franchisor of approximately 350 grill-buffet restaurants. After notification that the Nasdaq Stock Market could delist its shares, THE CHEESECAKE FACTORY INC. filed its annual 10-K report to securities regulators late, while the company downgraded earnings for 2002, 2003 and 2004. The company had said earlier that it required additional reporting time to revise its treatment for property leases under recently stiffened financial accounting rules. Systemwide same-store sales for the five weeks ended March 26 at OUTBACK STEAKHOUSE INC., operator or franchisor of 1,206 casual-dining restaurants under eight brands, rose 0.8 percent at Outback Steakhouses, 7.4 percent at Carrabba's Italian Grills, 11.6 percent at Fleming's Prime Steakhouse and Wine Bars, 4 percent at Roy's and 0.4 percent at Bonefish Grills. For the period ended Dec. 29, EL POLLO LOCO INC. reported a 32-percent decline in fourth-quarter net profit to $807,000, whose revenues fell 6 percent to $53 million. For the three months ended March 1, RUBY TUESDAY INC., operator or franchisor of 777 casual-dining restaurants, reported a 15-percent decline in third-quarter earnings. Same-store sales fell 8 percent at the company's restaurants and 8.4 percent at franchised outlets. Franchisor and operator of 1,825 Popeyes Chicken & Biscuits restaurants, AFC ENTERPRISES INC., reported a net profit of $24.6 million, or 87 cents per diluted share, versus a 2003 loss of $9.1 million, or 33 cents a share, because of gains from discontinued operations.
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| RESUME TIPS
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By: Bettie Biehn
Two For the Resume: Buzz Words and Relevance
While working with several resume clients recently, two items kept popping up: key words (sometimes called "buzz" words), and relevance. Both items are definitely worth noting.
When I say '"buzz" words, I mean industry-, company- or job-based words that are in the position description or job posting, that a scanner would give preference to in the selection process, and that are words relevant to the industry/company/position.
For example, for a human resources position, key words or phrases might be employee relations, benefits management, payroll, performance management, legal compliance, EEO, employee orientation, HRIS and retention. And if I were applying for this position, and I had experience and/or education in these areas, I would want to ensure that these words were firmly placed in my resume and cover letter.
With the use electronic resume scanning in the recruitment process, including key words can mean that you make the first cut in the hiring process….or not.
On a different but equally important topic, resume writers should review their completed resumes with a very critical eye - and as I've mentioned before, it's good to enlist several other people who can review your resume with objective and critical eyes. Ask them, and yourself, if everything you've included on your resume is necessary - and most important of all, relevant. If it is not relevant to the posted position, leave it out.
Sure, the fact that you consistently met sales quotas at a job 10 years ago may be relevant to you, but ask yourself if that fact is relevant to the job at hand, or will it be relevant to a recruiter, HR professional or hiring manager. If the answer is "no", then leave it out.
Harsh words, perhaps, but in this day where company recruiters receive hundreds, sometimes thousands, of resumes for one position, you want yours to stand out….for its brevity, clarity, understand-ability, user-friendly format, and relevance. Enough said.
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.
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| SAMPLING OF CURRENT ENGAGEMENTS
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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. COO, Family Dining, Midwest
4. VP Operations QSR, SE
5. VP/GM FSM, Midwest
6. VP Operations & Development, QSR, West
7. VP Franchising, QSR, USA
8. VP Purchasing, West Coast
9. VP Marketing, Midwest
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.
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| MARKETING NEWS
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A nationally integrated campaign, created by GREY WORLDWIDE, to celebrate the fifth anniversary of its Culinary Institute of Tuscany was launched last month by OLIVE GARDEN and will run through May 29th. The campaign includes TV and print ads, a giveaway of a trip to Italy, a cooking demonstration by PAOLO LAFATA, executive chef of Olive Garden on "The Tony Danza Show" and in-store material. The TV and print campaign will feature the chain's new Tuscan Garlic Chicken and the culinary institute's head chef, ROMANA NERI. NIGEL TRAVIS, CEO of PAPA JOHN'S INTERNATIONAL, saw an opportunity when DOMINO'S PIZZA was participating in an episode of "The Apprentice". In a move called "brilliant" by one marketing executive, even though he was unable to purchase any ad time during the national broadcast, Travis instead bought local ad spots around the country so that commercials featuring a new Papa John's pizza would air during the show.
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| HOSPITALITY - HOTELS
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As a recovery in business and leisure travel fueled higher room rates and management fees, HILTON HOTELS CORP.'s first quarter earnings surged 73%. STEPHEN F. BOLLENBACH, co-chairman and chief executive, says "Strong demand from both business and leisure travelers, particularly the former, is enabling us to significantly increase room rates at most of our owned hotels. The hotel operator, which operates the DOUBLETREE and EMBASSY SUITES brands as well as its flagship Hilton locations, said net income rose to $64 million from $37 million a year earlier. Total revenue rose 8.2% to $1.08 billion. The company said that significant volume and rate increases from business customers as well as improved pricing power in the group and leisure markets led to double-digit gains in revenue per available room at many company-owned hotels.
Today's hotels can offer a variety of options in the way of minibars. Families often want empty refrigerators while the business traveler usually prefers fully stocked minibars. The units can be stocked to allow for a portion to be used by the guest and some companies offer other variations, such as units that combine refrigerators with freezers and even microwaves.
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| HOSPITALITY - CASINOS
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The Cheyenne and Arapaho Indians, scattered throughout the state of Oklahoma, have offered $1 billion to the state of Colorado and are willing to give up their ancestral claims to nearly half of the state in exchange for a 500-acre piece of land near Denver where they hope to build the world's largest casinos including a five-start hotel, a mall, a golf course and an Indian cultural center. In an effort to help the Cheyenne and Arapaho Indians, Steve Hillard, a venture capitalist from Golden, who specializes in making investments to benefit Native American groups, proposed the idea for a casino near Denver. Spokeswoman for the tribe, Clara Bushyhead, said "It is the dream of our elders to complete our life cycle, to come back to our homeland in Colorado from which we were driven. Oklahoma was never our home." More established Indian gambling operations that do not want more local competition though, are protesting the crossing of state lines to open casinos. That trend has come under scrutiny in Congress where the Senate Indian Affairs Committee is examining rules like banning tribes from moving across state borders and giving greater say to other tribes that would be affected.
This year, the hot college vacation spots are poker tables and slot machines. According to booking website Travelweb.com and AOL CityGuide, Las Vegas now ranks among the top 10 spring-break destinations. DON MARRANDINO, president of HARRAH's northern Nevada operations said that casinos never thought to market to the young crowd in the past. But now, TV shows like Bravo's "Celebrity Poker Showdown" and ESPN's just-launched series "Tilt" have glamorized gambling. In Las Vegas, there are drink specials for anyone with a college ID, and a beach-themed dance club called Bikinis that calls itself "Official Spring Break Headquarters". Harrah's in Lake Tahoe even has wet T-shirt contests. In addition, analysts say that college-age crowds do not scrimp on entertainment and shopping. A study conducted for the Atlantic City Convention and Visitors authority shows that 21 to 32 year olds spend 24% more on average on non-gaming items, compared with older patrons. National Lampoon, a travel and entertainment company operating spring-break tours for the past 14 years, introduced a new package trip this year to Las Vegas that includes organized college poker tournaments, gaming classes with experts and accommodations.
Singapore is considering eliminating their ban on casinos and a growing number of Asian countries are expected to consider legalizing casinos in an attempt to draw more visitors and retain some of the money their citizens now spend gambling elsewhere. Analysts speculate that the Singapore government will approve development of at least one resort casino sparking frenzy among casino operators trying to outdo each other with their extravagant plans. Las Vegas-based WYNN RESORTS LTD. has vowed to spend $1.5 billion building such a resort if it gets a license; HARRAH's ENTERTAINMENT INC. plans to bring in Daniel Libeskind, the main architect for the planned Freedom Tower at the site of the World Trade Center in New York, to design its casino if it wins; MGM MIRAGE has proposed a plan, as has Sheldon Adelson's LAS VEGAS SANDS CORP. Supporters of the casino believe that it could earn between $1 billion and $2 billion a year and make a significant contribution to Singapore's gross domestic product.
Gov. George E. Pataki of Albany, NY withdrew pending legislation that would have allowed five Indian-run casinos to be built in the Catskills and settled tribal land claims. According to a spokesman, the settlements need to be renegotiated in light of a recent federal court ruling that would make it harder to win passage of Mr. Pataki's bill. Todd Alhart, spokesman for the governor, reiterated that the governor remained committed to the settlement agreements, which would allow the tribes to operate casinos in the Catskills. Issues to be renegotiated are the size of the settlement land that would fall under Indian jurisdiction and the collection of sales and excise taxes on goods and services sold on those lands.
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