Executive Connections Newsletter: Issue 61, JUNE 2005
| DICK WRAY & CONSULTANTS - MONTHLY EDITORIAL
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Written by Bob Gershberg, Executive Vice President
of Dick Wray & Consultants
“People are our greatest asset”, often the common cry of so
many executives in our venerable industry. We walk the walk and talk the
talk as well as any. Human Asset ROI and Financial Analysis of Human Assets
(FAHA) have become common terms in our dialogue. Performance management systems
are established in companies of all sizes. Human motivation and human development
are studied in order to effectively match performance with rewards.
So why following the presentation of top-notch executive candidates do
I frequently hear the response, “She is an incredible talent, but my
budget for this position is only…..”? We would be well served
to analyze what a stellar performer in a particular discipline might bring
to the proverbial party or bottom line if you wish, prior to making that
final judgment. Is it wise to pass on a super-star procurement professional
because of a $20k salary disparity when he or she is likely to bring savings
in excess of 10 times first year compensation? Would the CEO really pass
on this person if he or she were doing the initial screening?
We proudly employ 12.2 million people who produce almost $500 billion in
annual sales. Many great teams rich with diverse talent led by the nation’s
best leaders dot the landscape of our arena. Increasing focus is placed on
professional and personal development while the practice of team building
continues to morph beyond the “Forming, Storming, Norming and Performing” stages
proposed by Bruce Tuckman in the ‘60s.
In life we are compelled to “reach a bit further” in order
to achieve greatness. We are judicious in doing so in the hiring process
as well.
All the best,
Bob
Bob Gershberg, EVP
bob.gershberg@dickwray.com
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| EXECUTIVE MOVEMENT
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McDonald’s Corp.Named Denis Hennequin 46 to be president of the chain’s
Struggling European Division
Brinkers International Inc. named Todd Diemer president of Chili’s
Grill & Bar for the second time
New World Restaurant Group Inc. Golden CO. named James Hood to
the board ,he replaces John Clark
BRIAN TOSSELL was hired as director of research and development
for THE MELTING POT RESTAURANTS INC., operator or franchisor
of more than 90 fondue eateries. He replaces RON MEOLA,
who now is senior manager of field services for the Tampa based company.
Tossell was formerly executive chef for the Disney’s California Adventure
theme park in Anaheim, Calif.
Stating that she wants to “take on new challenges,” ELLEN
MOORE left her position as executive director of the WOMEN’S
FOODSERVICE FORUM, a professional organization dedicated to leadership
development. Moore who oversaw the 2,200-member organization’s strategic
initiatives and worked with its board of directors on long-range planning
for more than a yearsaid she “would continue to
support the organization and what it stands for.” The WFF has not
yet named her replacement.
JAMES SAALFELD was appointed to chief administrative
officer and ROGER ZINGLE was appointed to chief operating
officer by MERITAGE HOSPITALITY GROUP, a 48-unit Wendy’s
franchisee. Both positions are new. Saafeld was Meritage’s vice president,
general counsel and corporate secretary. Zingle was president and chief operating
officer of Meritage’s three-unit O’Charley’s franchise
group.
BRIAN KOLODZIEG was named to the newly created position
of vice president for culinary innovations and operations for METRO
MEDIA RESTAURANT GROUP. Kolodzieg is the former head of research
and development for Brinker International’s Chili’s Grill & Bar
chain and most recently was a Dallas-based culinary consultant.
PAUL SCHULTZ, a 32-year company veteran of JACK
IN THE BOX INC. was promoted to president and chief operating
officer, effective Oct. 3. Currently, Schultz is executive vice president
of operations and franchising. He will succeed president and chief operating
officer, LINDA LANG. The company’s senior vice president
and chief financial officer, JERRY REBEL, will assume
Schultz’s current position. Rebel joined Jack in the Box in 2003.
After 26 years with the company, ROBERT J. NUGENT, chairman
and chief executive of Jack In The Box Inc., will retire by October 3,
2005. He has been CEO since 1996 and chairman since 2001. Nugent will be
succeeded by Lang who joined the company in 1984.
STEPHEN LAMASTRA was named by RAVING BRANDS to
the position of chief operating officer, replacing RICK AKAM,
who left in February to join Bradenton, Fla.-based First Watch Restaurants.
LaMastra was formerly senior vice president of Washington, D.C.-based Ritz
Camera Centers. His appointment follows Raving Brands’ recent hiring
of former Cold Stone Creamery marketing chief BRIAN CURIN as
marketing vice president, a newly created post.
BEN WELLS was named to the newly created position of
senior vice president and treasurerat BURGER KING
CORP. Wells will report to CEDRIC BURGHER, Burger
King’s executive vice president and chief financial officer. He previously
served as vice president and corporate treasurer of Compaq Computer Corp.
KAREN KING has been named by MCDONALD’S
CORP as president of the chain’s U.S. East division, succeeding TIM
FENTON, who earlier this year was named president of McDonald’s
Asia Pacific-Middle East-Africa unit. King will oversee 5,200 company-owned
and franchised restaurants from New England to south Florida. King recently
served as vice president of strategic planning and business development
for McDonald’s U.S. business. Also promoted was WADE THOMA who
will serve as vice president of menu management for McDonald’s U.S.
He will direct the team that develops new food and beverage items for the
chain’s 13,700 U.S. locations. Credited with helping to develop Chicken
Selects and McGriddle breakfast sandwiches, Thoma was previously senior
director of menu management for McDonald’s U.S.
CHAMPPS ENTERTAINMENT INC . announced that DON
LAMB, chief operating officer, resigned to pursue other interests.
Until the position is filled, chief executive MIKE O’DONNELL will
take over Lamb’s duties.
Banker R. MICHAEL WELBORN was namedto
the new post of executive vice president and chief administrative officer
of P.F. CHANG’S CHINA BISTRO INC. effective June 1.
Reporting to chairman and chief executive Rick Federico, Welborn will remain
on P.F. Chang’s board, which he joined in 1996.
Former Chili’s Grill & Bar president WILSON L. CRAFT was
hired by RARE HOSPITALITY INTERNATIONAL INC., operator or
franchisor of 277 steakhouses, as senior vice president of operations for
its LongHorn Steakhouse brand, effective June 27. Craft replaces Longhorn’s
vice president of operations, THOMAS PANNULLO, who left
the company to pursue other opportunities. In February, Craft left Brinker
International of Dallas where he was chief operating officer. TODD
DIENER temporarily is heading Chili’s until a successor for
Craft is found.
Jacksonville-based operator and franchisor of about 170 Firehouse Subs
outlets, FIREHOUSE RESTAURANT GROUP INC., promoted franchise
compliance director DONALD FOX, a former Burger King franchise
district manager, to chief operating officer of its 1-year-old Firehouse
of America LLC franchise division. Fox also will oversee marketing, real
estate and training.
Replacing founder GARY BRYANT, who will remain chairman,
is chief operating officer CLYDE HARRINGTON who was promoted
to the position of president by BEAR ROCK FRANCHISE SYSTEMS INC.,
franchisor of the 35-unit Bear Rock Cafe chain. Harrington has worked with
Bear Rock since last November and previously worked with Perkins Family Restaurants
and Yum! Brands Inc.’s Pizza Hut subsidiary.
TONY VALLES and DAVID WHEELER were named
business development directors at THE KRYSTAL CO., operator
or franchisor of more than 450 Krystal burger restaurants. Valles, who will
operate out of Miami, has 20 years of franchise experience with several restaurant
companies. Wheeler most recently worked at Boston’s The Gourmet Pizza,
a casual-dining concept.
MICHAEL MRLIK was named president and chief executive
of MR. GATTI’S, the 150-unit pizza chain. Mrlik succeeds DON
BRINKMAN, son of Mr. Gatti’s founder, who left the post in
February after a transition period. Mrlik was most recently was chief operating
officer at bagel chain operator New World Restaurant Group Inc. of Golden,
Colo.
Operations vice president KIMBERLY GRANT was promoted
by RUBY TUESDAY to senior operations vice president, a newly
created post with management responsibility for the group’s 550 company-owned
Ruby Tuesday restaurants. Grant is a 13-year Ruby Tuesday veteran who worked
as operations controller and regional partner and in operations management.
She will report to SANDY BEALL, company founder and chief
executive.
Chairman and president ALLEN BERNSTEIN of MORTON’S
RESTAURANT GROUP announced that steakhouse division president JOHN
T. BETTIN resigned effective June 19th. Temporarily,
the post held by Bettin since 1998 will be filled by Morton’s co-founder
and current vice chairman KLAUS FRITSCH, who previously
had served as president. Bettin was hired by POTBELLY SANDWICH
WORKS as senior vice president and chief operating officer starting
in July.
KEVIN BURRILL has been promotedto the
newly created position of chief operating officerfor LAROSA’S
INC., a 57-unit pizzeria chain based in Cincinnati. Most recently,
Burrill served as the company’s vice president of franchise development.
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| NEWS
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Industry watchers tell us that when Americans are eating out these days,
they're increasingly selecting ethnic and are becoming more adventurous in
their eating habits. According to NPD Group, a Port Washington (N.Y.) research
firm, 6.1% of all dinners ordered in U.S. restaurants included an Asian dish
last year versus 4.4% in 1989. PF CHANG'S, which now operates
118 more-upscale "bistro" restaurants and more than 50 quicker-service PEI
WEI outlets, is betting on Japanese. Sharon Zackfia, an analyst
with William Blair & Co. in Chicago suspects the chain's third restaurant
concept "is likely to have a sushi focus." PF Chang chief executive
Richard Federico says "We think we're going to be on the front end of
the next wave in the Asian segment. And if American diners' continue to look
for new flavors, the company may be riding that wave for some time." Federico
says his places offer extras not found at many mom-and-pop Chinese restaurants:
upscale decor, dessert menus, cappuccino, and a 50-bottle wine list. "PF
Chang's has offered an alternative without compromising product quality," he
says. In addition, the appetite for south-of-the-border fare is surging,
with 10.1% of all dinners including a Mexican dish last year, vs. 6.2% in
1989. Some of the major food players in the country are banking heavily on
Mexican food. MCDONALD'S invested in Denver-based burrito-joint
chain CHIPOLTE. WENDY'S acquired BAJA
FRESH, based in Thousand Oaks, Calif. CARL'S JR.'S CKE
Restaurants got into Carpinteria, Calif.-based LA SALSA,
and JACK IN THE BOX bought Wheat Ridge, Colo.-based QDOBA in
2004.
A report citing family sources announced that ARNOLD “ARNIE” MORTON,
a founding father of the upscale steakhouse segment has died. Morton, who
had Alzheimer’s disease and cancer, was 83. Formerly the executive
vice president of Playboy Enterprises, the creative, third-generation restaurateur
developed the worldwide chain of Playboy Clubs after first teaming with Hugh
Hefner in 1960. The 1978 debut of Morton’s, which evolved into the
65-unit international chain after he sold the brand in the late 1980s was
among several of Morton's Chicago restaurant concepts. He also developed
Chicago’s swank East Bank Club and its three restaurants, and is credited
with helping launch the annual Taste of Chicago event in 1980.
ARBY's is transferring their headquarters to Atlanta. TRIARC
CO ., Arby's parent company, is purchasing RTM Restaurant Group,
the largest Arby's franchisee, which will facilitate the relocation from
Florida.
INFOAMERICA , the leading provider of self-service solutions
for the quick-service restaurant industry has been acquired by NCR.InfoAmerica,
a pioneer in self-service for the fast-food segment, has developed kiosk
solutions for many of the industry's major companies, including four of the
top 10 quick-service restaurants.
A 10-year development agreement to open restaurants in Mississippi and
Louisiana was made between BUFFALO’S SOUTHWEST
CAFÉ and MARK HAGWOOD, of Baton Rouge, La.-based HAGWOOD
RESTAURANT CORP. Hagwood, with his first Buffalo’s unit scheduled
to open next year in Jackson, Miss., agreed to open at least three more branches
per year and now operates five franchised McAlister’s Deli locations
in Louisiana.
According to chief executive BRIAN LUDLOW, northern Michigan-based LUDLOW
ENTERPRISES, a BIG BOY franchisee since 1972,
will sell back four of its five restaurants to the Warren-based franchisor
in order to concentrate on other businesses. The real estate will be retained
by Ludlow. In addition, the four outlets, located in resort areas, have
liquor licenses, which will transfer to the franchisor.
PANO KARATASSOS , the founder of BUCKHEAD LIFE
RESTAURANT GROUP, operator of 12 fine-dining concepts, announced
that he is set to open a 14,000-square-foot, two-story property near the
Atlanta Financial Center in the city’s Buckhead community. The concept,
still un-named, is scheduled to open in 2007 and would join 12 other high
profile restaurants in the Buckhead Life group, including Kyma, Bluepointe,
Atlanta Fish Market, Chops/Lobster Bar, Buckhead Diner and the flagship
Pano’s & Paul’s, launched in 1979.
At this year's NATIONAL RESTAURANT ASSOCIATION show in
Chicago, the WOMEN’S FOODSERVICE FORUM awarded
the 2005 WFF Entrepreneur of the Year Award to EDNA BAYLIFF and LAREN
GARTNER, founders of CHEESEBURGER RESTAURANTS INC.
With no prior restaurant experience, Bayliff and Gartner opened their first
Cheeseburger in Paradise unit in Lahaina, Hawaii, in 1999 and have since
expanded to four restaurants in Hawaii and Las Vegas, with anticipated gross
sales of $27 million for 2005. Additionally, chair of the WFF, ALICE
WHEELWRIGHT, presented her personal recognition award to WFF founding
members JACKIE TRUJILLO, who retired recently from her post
as chairman of KFC franchisee Harmon Management, and PAT HARRIS of
McDonald’s Corp. as well as former WFF chairs PAT ANTON of
Anton Airfood Inc. and BARBARA TIMM-BROCK of Aramark Campus
Services.
ANTON AIRFOODS, licensee for DAIRY QUEEN, launched
a DQ GRILL& CHILL in the Minneapolis-St. Paul International
Airport as the first branch of the DQ Grill & Chill brand to open in
an airport.
HDS SERVICES , a foodservice management company that specializes
in health care
and extended care facilities as well as upscale retirement communities
was acquired by Charlotte, N.C.-based COMPASS GROUP PLC.
HDS will operate under Compass’ Morrison’s Management Specialists
division. HDS also said that GEORGE COUSINS would retire
as its chief financial officer June 17. A replacement has not yet been named.
Franchisee TRIGO BREAD CO. LLC had agreed to open six
more bakery-cafes in northwestern Ohioaccording to PANERA
BREAD. Former Pizza Hut franchisee JOYCE LUNSFORD owns
Trigo. Also, MANNA DEVELOPMENT GROUP LLC signed its second
franchise pact with St. Louis-based Panera, for the opening of 10 outlets
in San Diego by 2012. Manna owner PAUL SABER was a McDonald’s
operator in Georgia and New Mexico.
Tampa, Fla.-based CHECKERS DRIVE-IN RESTAURANTS INC.,
said Newnan, Ga.-based STRICK CHEX LLC has agreed to open
10 Checkers units in the I-85 corridor between southern Atlanta and Alabama
by 2009. Spokeswoman KIM FRANCIS said that no date is set
for the first opening.
A delivery service called “Meals to Go” was launched by BRUEGGER’S
ENTERPRISES INC., a 243-unit bakery-cafe chain, at its outlet
in Nashville, Tenn., which opened in May. Meals to Go is an extension of
the brand’s carry-out catering service that debuted systemwide in
January.
The INTERNATIONAL FOODSERVICE MANUFACTURERS ASSOCIATION awarded RON
SHAICH, chairman and chief executive of St. Louis-based PANERA
BREAD CO., the Gold Plate Award winner at IFMA’s annual
awards banquet in Chicago. The head of the bakery-cafe chain was selected
from among nine Silver Plate Award winners. Other recipients of the Silver
Plate award included DAVID PRENTKOWSKI, foodservice director
at the University of Notre Dame in Indiana; JULIA STEWART,
president and chief executive, IHOP Corp., Glendale, Calif.; DORA
RIVAS, foodservice administrator for the Brownsville Independent
School District, Brownsville, Texas; PAUL PUSATERI, senior
vice president of operations for the Venetian Resort Hotel & Casino,
Las Vegas; MARY NIVEN, vice president of resort food and
beverage operations, the Disneyland Resort, Anaheim, Calif.; LINDA
LAFFERTY, director of food and nutrition services, Rush University
Medical Center, Chicago; RICHARD CATTANI, president, Restaurant
Associates Managed Services, New York; and MARC COHEN,
chef-owner, 230 Forest Avenue Grill & Martini Bar and Opah, Laguna
Beach, Calif.
The Wichita-Kansas based company operating 77 Fox & Hound and Bailey's
restaurants, Total Entertainment Restaurant Corp., changed its name to FOX & HOUND
RESTAURANT GROUP.
According to an article in New York Newsday, SBARRO, the
chain of more than 900 quick service Italian outlets, is suing two ex-employees.
They claim the international officials walked off with trade secrets and
opened two Sbarro-like restaurants in Egypt. The Melville-based company is
seeking $10 million in damages from brothers EMAD KARYKOUS and SAID
KIRIEAKES, who were senior vice president and director of international
operations, respectively. Sbarro also wants the two to close their MERCATO
ITALIANO restaurants in Cairo, or alter the concept enough to avoid
confusion with Sbarro outlets.
After filing for protection from creditors in U.S. Bankruptcy Court for
the Northern District of Texas in February 2004, AVADO BRANDS,
parent of the Don Pablo’s Mexican Kitchen and Hops Grillhouse and Brewery
chains, has emerged from Chapter 11 bankruptcy protection as a private company.
Its bankruptcy petition listed $228 million in assets and $260 million in
liabilities. Avado said it had received sufficient liquidity through a $60
million debtor-in-possession credit facility provided by DDJ CAPITAL
MANAGEMENT LLC of Wellesley, Mass., a private equity and debt financing
company during its restructuring period. DDJ, under the bankruptcy process,
becomes the majority equity owner of Avado through the conversion of DDJ’s
existing bonds into common stock of the reorganized company and through the
purchase of $17.5 million of preferred stock. A managing director of DDJ, DAVID
L. GOOLGASIAN JR., along with DAVID J. BREZZANO,
also of DDJ, were added to Avado’s six-member board.
Panera Bread franchisee COVELLI ENTERPRISES signed a franchise
deal with O’CHARLEY’S
INC., operator or franchisor of 228 namesake casual-dining locations,
for development of up to 50 restaurants in Florida, Ohio, Pennsylvania and
West Virginia. The company said that the deal more than doubled O’Charley’s
franchise expansion plans.
A taco salad is now being offered systewide by CARL’S JR.,
the 1,014-unit burger brand of CKE RESTAURANTS INC., from
the menu of sister brand GREEN BURRITO. The taco salad launch
is the first such co-branded menu rollout for Carl’s Jr. Officials
at CKE say they are considering the possibility of either increasing the
number of co-branded units or adding more Green Burrito dishes to the menus
of all Carl’s Jr. restaurants.
In an annual survey conducted by the University of Michigan business school,
the fast-food industry racked up its highest consumer satisfaction score
ever, 76 out of a possible 100. According to the university’s American
Customer Satisfaction Survey, or ACSI, the quick-service category’s
overall rating jumped 3 percent, versus the fourth quarter of 2003. Jumping
6 percent and 4 percent respectively, TACO BELL and BURGER
KING generated the most substantial improvements from the fourth
quarter of 2003. McDonald’s ACSI rating, however, dropped 3 percent
to 62, a score that the study said is 14 percent below the industry average
and lower than any other competitor. For the sixth year in a row, Papa John’s
Pizza topped the survey with a rating of 78, up nearly 3 percent. Wendy’s
received the next-highest score, 75, an increase of 1 percent.
Four franchisees were signed to development agreements by CKE RESTAURANTS
INC., for 19 LA SALSA FRESH MEXICAN GRILL units
in Texas, Missouri and Florida. The operator of two La Salsa locations
in West Palm Beach and Fort Lauderdale, Fla., STEPHEN MCDOWELL of SOUTH
FLORIDA CAFES INC., has a third under construction and two more
planned for Broward and Palm Beach counties. REF HOLDINGS LLC,
led by ERIC FARR, is scheduled to launch its first La
Salsa in Jacksonville, Fla., this summer and has plans for a total of seven
additional La Salsa’s. MICHAEL KATZ, JOE
SIEVE and ED THROOP, first-time La Salsa franchisees
under the company, THE WHOLE ENCHILADA LLC, plan to open
six or seven locations in the St. Louis area, at the beginning of the summer. CALEB
WRIGHT purchased two existing La Salsa locations in Austin, Texas,
with plans to open three more in the area.
Rather than fight Chicago City Hall charges that the company is a front
for Panda Express nonminority partner TONY REZKO, a major
fundraiser for ROD BLAGOJEVICH, Illinois' Governor, CRUCIAL
INC. has agreed to give up its three PANDA EXPRESS units
at O’Hare International Airport. Attorney for Crucial, PETER
SILVERMAN, said that his client concluded it was not worth the effort
and expense required to fight City Hall. Because of that decision, Crucial
will lose its minority-business certification and will be barred from doing
business with the city for three years. It was reported that HOST
SERVICES, which oversees food and beverage concessions at O’Hare,
will replace Crucial.
The corporate chef of M CROWD RESTAURANT GROUP in Dallas,
Tx. CHRIS WARD, said that he is a finalist for the job of
White House chef. Although he is not at liberty to name other chefs with
whom he is competing, Ward did say, “thousands upon thousands” had
applied for the job as top toque at the Executive Mansion in Washington.
As part of a promotion touting its Warehouse Sangria, SPAGHETTI
WAREHOUSE, a 22-unit division of CONSOLIDATED RESTAURANT
OPERATIONS INC., is offering guests a chance to win a trip for
two to the Venetian Resort Hotel Casino in Las Vegas. The sweepstakes will
run through July.
BURGER KING announced that it would stay in Miami-Dade
County and build a new headquarters in Coral Gables, Fla., by fall 2008.
Earlier this year, BK was considering a move to Dallas or Houston and, in
February, Miami-Dade County commissioners approved a $5.38 million incentive
package in exchange for BK’s promise to add 60 new jobs to its existing
450. BK said that the new 250,000-square-foot headquarters will allow the
company to consolidate employees currently based at two separate Miami-area
locations. Construction will begin next year and the burger chain is expected
to spend $68 million to build the new support center.
Four multistore development agreements with existing franchisees were signed
with the 174-unit JOHNNY ROCKETS chain during the first
quarter. The operator of eight units in Minnesota, Rhode Island, Connecticut
and New York, LLOYD SUGARMAN, agreed to develop 10 stores
in Manhattan. RON WEEDEN of JOHNNY ROCKETS SCOTTSDALE
INC. plans to develop another four locations in Phoenix, adding
to his current three. With four stores in New Mexico and Arizona, DEREK
DAMON and KEVIN THOMSON of COYOTE VENTURES plan
to open three additional units in Phoenix. And, six additional Johnny Rockets
units are scheduled to open by ROYAL CARIBBEAN INTERNATIONAL on
their cruise ships bringing its total to 12.
Plans were unveiled this month by several national restaurateurs to add
outposts in the $450 million phase two of the Victory retail-office residential
development near the American Airlines Center north of downtown Dallas. Owner
of the Craft restaurants in New York and Las Vegas, TOM COLICCHIO,
plans to open a third CRAFT as well as his ’WICHCRAFT fast-casual
sandwich eatery in the new WHotel. MICHAEL MORTON and SCOTT
DEGRAFF of THE N9NE GROUP in Las Vegas plan to
open N9NE STEAKHOUSE and NOVE ITALIANO,
an Italian concept that it first will unveil in Las Vegas. Owner of Dallas’ Ferre
and Steel, PATRICK COLOMBO, will open the contemporary AMERICAN
VICTORY TAVERN. In addition, KENICHI KANADA and
Aspen restaurateur BILL RIEGER plan to open an Asian-fusion KENICHI.
The 127-unit franchising arm for Marco’s Pizza, MARCO’S
FRANCHISING LLC, acquired nine units in the Indianapolis market
from Louisville, Ky.-based PIZZA MAGIA. Terms of the deal
were not disclosed and Marcos said that the stores converted to the Marco’s
system early this month.
Franchisor of 160-unit Beef O’Brady’s, FAMILY SPORTS
CONCEPTS, said regional quick-service veteran RON WAHL acquired
ownership of the group’s two-unit Tallahassee, Fla., franchise and
bought rights to develop a third Beef O’Brady’s there as well
as a fourth location in Albany, Ga.
BAR-B-CUTIE FRANCHISE SYSTEMS LLC said Georgia-based
franchisee GPE RESTAURANT GROUP INC. agreed to open a Bar-B-Cutie
unit in Acworth, Ga., by Oct. 1.
JOHN GANTES , president and chief executive of Orange
County, Calif.-based BRECKENRIDGE GROUP INC., signed a franchise
development agreement with EL POLLO LOCO for the opening
of 18 of the quick-service grilled-chicken restaurants in California and
Washington by 2015. Gantes agreed to launch 14 El Pollo Locos in the Oakland
and eastern San Francisco area, and four units in southern Washington near
the Oregon border under the agreement. With 92 units overall, Gantes is a
franchisee of Burger King, Applebee’s, Famous Dave’s, Häagen
Dazs, Arby’s, On The Border Mexican Grill & Cantina, Coco’s
Bakery, Ruby’s Diner, Johnny Carino’s Italian and Bruegger’s.
According to GOOD TIMES RESTAURANTS INC., owner and operator
of 40 Good Times Burger & Frozen Custard units, based in Golden, Colo.,
there are plans to open more co-branded stores with TACO JOHN’S
INTERNATIONAL, the Mexican fast-food chain based in Cheyenne, Wyo. ERIC
REINHARD, Good Times’ chairman and chief development officer
said that last spring, the two quick-service restaurant companies joined
in a co-branding test in Cheyenne. The sales results of that pilot project
were so encouraging, they agreed to open seven to eight more dual locations
this year.
A second location of CINNABON INC. is scheduled to open
at the end of the month in Baghdad, Iraq. AL-HOMAIZI GROUP, the
600-unit chain’s Kuwait-based licensee, which also runs Burger King
and Pizza Hut franchises in conjunction with the ARMY AIRFORCE EXCHANGE
SERVICES, or AAFES, will operate the cinnamon roll shop.
Multi-brand operator RANDY SCHOCH signed a five-unit franchise
development agreement with BRINKER INTERNATIONAL INC., operator
or franchisor of 1,500 restaurants for the Hawaii debut of ROMANO’S
MACARONI GRILL. Schoch is owner and chief executive of Phoenix-based DESERT
ISLAND RESTAURANTS. The group operates the four-unit Thaifoon Taste
of Asia casual-dining chain and also has three franchised Ruth’s Chris
Steak Houses in Hawaii. The first Romano’s Macaroni Grill in Hawaii
is scheduled to open in November at the Ala Moana Center in Honolulu.
Operator or franchisor of 13 fast-casual locations, FRESH CITY,
based in Needham, Mass. signed franchisee GARDEN STATE FRESH LLC to
a development deal for 20 New Jersey
restaurants. The first unit would open in Livingston, N.J., this year,
with additional two restaurants targeted to open in 2006.
Pittsburgh-based MCKNIGHT CAPITAL PARTNERS acquired RITA’S
WATER ICE FRANCHISE CORP., a 323-unit chain, from founder BOB
TUMOLO, who will continue as a consultant. JIM RUDOLPH,
who runs McKnight Capital Partners, will become Rita’s president
and chief executive, replacing Tumolo.
In a lawsuit filed last month in the New Jersey Superior Court , seventeen
New Jersey-based QUIZNOS SUB franchisees are seeking punitive
damages against Denver based QUIZNOS CORP. and several affiliated
companies alleging consumer fraud. Quiznos is accused by the plaintiff franchisees
of “deceptive recruitment practices” for taking franchise fees
from them 18 months ago for stores that were never opened. According to JUSTIN
M. KLEIN, the franchisees’ attorney at the
Red Bank, N.J., firm MARKS & ASSOCIATES ESQS, the suit
also alleges that Quiznos refused to return any portion of the fees and that
the plaintiffs’ franchise agreements now are being threatened with
termination. A statement from Quiznos Corp. said that “the claim has
no merit, and we plan to respond accordingly.”
According to court documents, RHETT SMITH, the franchisee
for BURGER KING who filed for Chapter 11 bankruptcy protection
earlier this year, is auctioning 19 of the 22 BKs he operates in and around
the Nashville area. Smith said in court documents he had “not been
able to make a profitable business of these restaurants and has generated
a larger debt to Burger King Corp.” for royalties and rents as his
sales declined 25 percent over the past three years.
The 54-unit upscale chain, MCCORMICK & SCHMICK’S SEAFOOD
RESTAURANTS INC., opened its first restaurant in Charlotte, North
Carolina with another location slated to open in the state by early summer.
The 15 th annual JAMES BEARD AWARDS presentations were
held at the New York Marriott Marquis Hotel. More than 60 awards were presented
in recognition of excellence and achievement in the culinary profession.
New Orleans’100-year-old GALATOIRE’S was
named Outstanding Restaurant of the Year. The president of New York-based UNION
SQUARE HOSPITALITY GROUP, DANNY MEYER, was named
Outstanding Restaurateur. Outstanding Chefwas awarded to MARIO
BATALI, chef and co-owner of several New York restaurants, including BABBO, ESCA and CASA
MONO. The Best New Restaurant Awardwas presented
to THOMAS KELLER’s PER SE restaurant
in New York. Chef JACQUES PÉPIN, cookbook author
and television cooking-show host, received the Lifetime Achievement Award.
The 77-unit casual-dining chain based in Leawood, Kan., HOULIHAN’S,
signed RADIANT-TAMPA RESTAURANTS to a pact calling for the
franchisee to open three units in Tampa, Fla. debuting the first unit in
late summer. Radiant-Tampa is owned by industry veterans MANISH DOSHI and ALAN
GAYLIN.
A franchise agreement was signed between LENNY’S
SUB SHOPS, a 74-unit chain, and retail management firm DYNAMIC
GROWTH PARTNERS INC. of Boca Raton, Fla. The agreement calls for
Dynamic to open 123 restaurants in southern Florida over the next six years,
which would almost triple the chain’s size if completed. Also, it
was agreed that Dynamic would assume control of two of the existing Lenny’s
Sub Shops-owned restaurants in the Tampa, Fla., market.
WORLDWIDE RESTAURANT CONCEPTS , parent company of the SIZZLER and PAT & OSCAR’S brands
has said that Australian private equity firm PACIFIC EQUITY PARTNERS agreed
to purchase WRC. Subject to shareholder and regulatory approval, the purchase
will require the consent of YUM! BRANDS INC. because WRC
also operates 112 franchised KFC units, primarily in Australia.
A disclosure was filed with the U.S. Securities and Exchange Commission
on a form intended for passive investors, or those not planning to influence
company operations by a division of Dutch bank, ABN AMRO of
Amsterdam telling U.S. securities regulators it had accumulated 5.7 million
shares, or more than 5 percent, of WENDY’S
INTERNATIONAL INC.’s stock. Two other investment groups also
accumulated shares. HIGHFIELDS CAPITAL MANAGEMENT in Boston
reported that it had accumulated 6.86 million shares Wendy's International,
giving it a 6.1 percent stake in the company. Highfields, too, made the disclosure
with a form intended for passive investors, or those not planning to influence
company operations. And, that disclosure came shortly after another hedge
fund, PERSHING SQUARE CAPITAL MANAGEMENT of New York, said
it had acquired a 9.3-percent stake in Wendy’s through stock and options,
and that it planned to pressure management to boost shareholder value through
changes in operations or a spinoff of one or more of Wendy’s divisions
including Tim Hortons and Baja Fresh Mexican Grill. Based in Dublin, Ohio,
Wendy's said it does not comment on stock transactions.
In a joint acquisition, travel venue concessionaire HMS HOST CORP.
of Bethesda, Md., and DEWINA HOLDINGS, a convenience foods
manufacturer acquired RUBY TERRACE SDN BHD, a privately
held airport concessionaire operating at Kuala Lumpur International Airport.
The company announced recently that OUTBACK STEAKHOUSE has
cut average unit volume estimates for its BONEFISH brand
based on sales trends. In its 10-Q filing, Outback disclosed that it expects
Bonefish AUVs to be flat for the remainder of 2005. Also, Outback raised
its outlook for CARRABBA's ITALIAN GRILL with AUVs expected
to rise 4% this year, up from an earlier estimate of approximately 3%.
Adopting STARBUCKS' strategy of company-owned and operator
stores instead of franchises, POTBELLY SANDWICH WORKS continues
a steady growth. With 78 company-owned locations in eight states, Potbelly
has the opportunity to build a national brand and a national company, according
to HOWARD SCHULTZ, Starbucks' chairman. Preferring to open
company-owned locations staffed with "our people", Potbelly chairman
and chief executive, BRYANT KEIL says, "We know they
understand what we're trying to do, and it allows us to operate better." In
addition, Keil announced that WILLIAM MORETON, chief executive
of the Wendy's International Baja Fresh chain, would join Potbelly as president
and chief financial officer this month.
COSÍ INC . said one of its franchisees would open
a new “grab and go” Cosí concept next month called COSÍ PRONTO! and
will be located in New York’s La Guardia airport.
Showcasing the state's agricultural offerings beyond tobacco, LEVY
RESTAURANTS served Kentucky-raised meats and cheeses as well as
jams and pastries at this year's Kentucky Derby.
Today, technique and execution are no longer the qualifications to becoming
a "great" chef. Inventiveness is the key to success. A recently
released ranking of the world's top eateries showed that in order to be the
best, today's chefs must be creative, sometimes to the point of being absurd. RESTAURANT ,
the British magazine, divulged its fourth annual global ranking of the 50
Best Restaurants, which was compiled from an international survey of chefs,
restaurateurs and food journalists. The number one conclusion drawn is that "haute
cuisine" now means "off the wall". For example, at the London
suburb of Bray, in the Berkshire countryside, two restaurants are featured
on the list, including the one occupying the top spot, the FAT DUCK .
At the Fat Duck, Chef Heston Blumenthal is at the front of a far-reaching
style of cooking known as "molecular gastronomy" featuring items
such as sardine-flavored sorbet, snail porridge, or a puree of mango and
Douglas fir. Experiments like these are apparently tempting to eat, thus
landing the restaurant on the list of the world's 50 Best Restaurants.
There is a healthy demand for the indulgence category in high-end dining.
According to a restaurant consultant, the economic climate is "one of
extremes" with many people valuing the quality of experience enough
to splurge at top-dollar restaurants with months-long waiting lists for reservations.
With a growing interest in the U.S in food competition shows such as the
Food Network's "Iron Chef America", combat cooking with personalities,
time pressure and cooking secrets focuses more on entertainment than the
prepared meal.
According to Wall Street analysts, WENDY's INTERNATIONAL is
facing increased pressure either to reconsider a spin-off of its highly profitable
Tim Hortons doughnut chain or to restructure operations after two hedge funds
took large stakes in the company.
With consumers customizing everything from cars, computers,
and clothes, casual-dining chains are now offering menus in a similar mode.
Restaurants are providing mix-and-match menu items specifically aimed at
accommodating customers' growing expectations for mealtime choice.
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| FINANCIAL
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A 0.4-percent increase in second-quarter net revenues to $93.5 million
was posted at VICORP RESTAURANTS INC. for the three months
ended April 21. Net income for the quarter was $500,000, versus a loss of
$3.7 million in the year-earlier period.
Systemwide same-store sales for the four weeks ended May 21 at OUTBACK
STEAKHOUSE INC., the 1,217-unit system of casual-dining eateries,
have risen 1.5 percent at its namesake Outback Steakhouse brand.
For the four weeks ended May 22, APPLEBEE’S
INTERNATIONAL INC., operator or franchisor of the Applebee’s
chain’s 1,711 casual-dining restaurants, said comparable-store sales
rose 3.8 percent systemwide.
A 22-percent decline in its fourth-quarter net income, reflecting asset
impairment charges of $2.7 million, or 16 cents per diluted sharewas
reported by BENIHANA INC., operator of 71 Japanese-style
restaurants, including the 56-unit Benihana teppanyaki chain.
The Los Angeles-based company, GRILL CONCEPTS INC., operator
or franchisor of 24 restaurants under the Grill on the Alley and Daily Grill
brands, posted fourth-quarter profits of $230,000, almost double those of
last year’s comparable period, on a nearly 13-percent jump in revenues
to $17.1 million. Results were filed for the fourth quarter and year ended
Dec. 26 after delays stemming from changes to lease accounting practices
and necessary restatements for fiscal 2002 and 2003.
For the period ended March 31, HOST AMERICA CORP., foodservice
management specialist, reported a 32.7-percent increase in third-quarter
revenues to $8.16 million, despite a net loss of $2.1 million, which it attributed
largely to $1.1 million in charges related to the sale of its SelectForce
employee screening unit, the issuance of stock options to a non-employee
and an amended loan agreement with its senior lender. The company also reported
the completion of its acquisition of R.S. SERVICES,
an energy management company, and obtained a new Meals on Wheels account
in Everett, Mass.
A 3-percent increase in third-quarter earnings was reported by CBRL
GROUP INC., operator or franchisor of 524 CRACKER BARREL
OLD COUNTRY STORE restaurants and 147 LOGAN’S
ROADHOUSE units for the period ended April 29.
For the four weeks ended May 14, same-store sales rose 4 percent for U.S.
branches of YUM! BRANDS INC.’s chains including increases
of 4 percent at Taco Bell, 1 percent at Pizza Hut and 7 percent at KFC. Also,
according to the company, because of negative publicity earlier this year
about the finding of an industrial dye linked to cancer in two KFC products
that were pulled from menus, systemwide sales fell 5 percent in local currencies
in its three-country China division.
JACK IN THE BOX INC ., the operator or franchisor of 2,000
namesake quick-service restaurants, including 1,549 owned by the company,
reported an 11-percent jump in second-quarter earnings to $20.7 million on
a 12-percent rise in revenues to $577 million.
First-quarter earnings soared to 47 percent at PANERA BREAD CO.
while revenues jumped 37 percent. Net income of $13.9 million, or 44 cents
per diluted share, for the quarter ended April 19, compared with $9.5 million,
or 31 cents, for the previous first quarter was reported by the operator
or franchisor of 773 bakery-cafes.
An 8.8-percent jump in second quarter earnings on a 14-percent increase
in revenues was reported by STEAK N SHAKE CO., operator
or franchisor of 433 restaurants.
Compared with year-earlier results for the first quarter, EL POLLO
LOCO INC., operator or franchisor of 321 fast-casual grilled-chicken
restaurants, posted a 22-percent decline in operating income to $5 million
on a 1.5-percent rise in revenues to $54.7 million.
A first-quarter net loss that was cut by more than half ($2.8 million versus
a loss of $6.4 million) from its year-earlier deficit on revenues that rose
9.2 percent for the three months ended April 4 was posted by COSÍ INC.,
operator of 92 fast-casual Cosí sandwich cafes.
Record sales of $2.66 billion were recorded by foodservice management specialist ARAMARK
CORP., for the second quarter ended April 1, up 5.6 percent from
$2.52 billion in the same quarter a year earlier.
For the three months ended March 26, MCCORMICK & SCHMICK’S
SEAFOOD RESTAURANTS INC. reported first-quarter net income of
$1.6 million, versus a loss of $1 million a year earlier, on a 10.8-percent
increase in revenues to $60.4 million.
For the five weeks ended April 29, BOB EVANS FARMS INC.
said same-store sales dropped 5.8 percent at its Bob Evans family restaurants
and rose 4.9 percent at its Mimi’s Cafe locations.
A 34-percent increase was reported by O’CHARLEY’S
INC., operator or franchisor of 335 casual-dining restaurants
in first-quarter earnings on an 8.5-percent jump in total revenues.
Operator and franchisor of 7,799 Domino’s Pizza delivery-takeout
locations, DOMINO’S PIZZA INC., reported
a 35.6-percent surge in first-quarter profits on what it said were strong
systemwide sales that were boosted by improved same-store sales and unit
growth.
While same-store sales rose 2.8 percent worldwide, MCDONALD’S
CORP. reported a 3.9-percent increase in global systemwide sales
for April in constant currencies. Samestore April sales increased 4.7 percent
in the United States and 1.6 percent in the Asia/Pacific-Middle East-Africa
region but fell 0.7 percent in Europe.
A 2.3-percent increase in first-quarter revenues to $93.3 million was posted
by NEW WORLD RESTAURANT GROUP INC. which also said that
operating expenses and cost of goods as a percentage of sales both had fallen.
However, compared with year-earlier results, which included a gain of $760,000
from an adjustment of reorganization costs, operating income of $1.7 million
was flat.
The 72-unit subsidiary of CASTLE HARLAN INC., MORTON’S
RESTAURANT GROUP INC., posted higher earnings for the first quarter
after a pretax gain from the sale of an investment, while revenues rose
5.8 percent. Morton’s net income for the quarter ended April 3, was
$2.2 million, including a pretax gain of $648,000, compared with a profit
of $1.9 million for the previous first quarter.
The operator and franchisor of 63 sports theme restaurants based in Littleton,
Colo., CHAMPPS ENTERTAINMENT INC., recorded a third-quarter
loss on a 2.7-percent increase in revenues to $55.6 million.
DARDEN RESTAURANTS said that Olive Garden’s same-store
sales for April rose about 8.5 percent on a nearly 6.5-percent increase in
guest traffic and a 2-percent price hike while Red Lobster’s same-store
sales were up about 1.5 percent for the month on a traffic increase of only
about 0.5 percent and a 1-percent rise in check average.
BRAD HONIGFELD , CEO of the BRIAD GROUP, a
New Jersey-based WENDY’S and T.G.I. FRIDAY’S operator,
purchased 2.2 million shares of stock in MAIN STREET RESTAURANT GROUP,
the largest T.G.I. Friday’s franchisee. According to government filings,
Honigfeld bought most of the stock from former Main Street CEO BART
BROWN JR. and now owns nearly 15 percent of Main Street, which recently
reported first-quarter revenues of $61.4 million, up 4 percent, and net income
of $1.5 million, or 10 cents a share, up 29 percent.
Marking the chain’s 15th straight month of positive results, BURGER
KING CORP. said Burger King’s U.S. systemwide same-store
sales for April jumped 6.7 percent.
For the four weeks ended May 1, STARBUCKS CORP., operator
or licensor of about 9,400 coffeehouses, posted a 9-percent rise in same-store
sales for the company’s outlets.
Operator or franchisor of 3,166 quick-service restaurants, CKE
RESTAURANTS INC., reported that same-store sales for the four
weeks ended April 25 were up 1.7 percent at Carl’s Jr. and down 1.7
percent at Hardee’s, versus year-earlier results.
A 37-percent jump to $178.1 million in first-quarter revenues was posted
by PANERA BREAD CO., operator or franchisor of 773 bakery-cafes.
For the quarter ended April 19, systemwide same-store sales rose 6.2 percent
as average weekly sales increased 4.2 percent to $35,914 for Panera’s
units and 5.1 percent to $37,215 for franchises.
A 17-percent jump in first-quarter profits on strong sales that yielded
a 6.5-percent increase in revenueswas reported by PAPA
JOHN’S INTERNATIONAL INC., operator of 570
Papa John’s Pizza locations and franchisor of another 2,275 outlets.
Net income was $10 million versus net income of $8.5 million, in the previous
first quarter.
First-quarter earnings per share at LANDRY’S
RESTAURANTS INC., operator of 301 casual-dining units, including JOE’S
CRAB SHACK and RAIN FOREST CAFE, fell 10 cents
from a year earlier. The Houston-based company said its net interest expense
more than doubled from last year because of an $850 million refinancing
in 2004’s fourth quarter.
For the three months ended March 31, IHOP CORP., franchisor
of the 1,198-unit chain, reported a 7.7-percent dip in first-quarter earnings
to $10.1 million. IHOP earned $10.9 million in last year’s first quarter.
For the quarter ended March 30, Spartanburg based DENNY’S
INC., operator or franchisor of 1,585 restaurants, lost $1.5 million
compared with a net loss of $8.7 million for the previous first quarter.
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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.
- VP Development, Northeast - bob.gershberg@dickwray.com
- VP Operations, West Coast - dick.wray@dickwray.com
- COO, Family Dining, Midwest - dick.wray@dickwray.com
- CEO, South - dick.wray@dickwray.com
- VP Real Estate, West Coast - dick.wray@dickwray.com
- VP Operations & Development, QSR, West - dick.wray@dickwray.com
- VP Operations, Southeast QSR - bob.gershberg@dickwray.com
- VP HR, West Coast - rebecca.patt@dickwray.com
- VP Marketing, Midwest - dick.wray@dickwray.com
- Director of IT, West Coast - jim.Osborn@dickwray.com
- VP Operations, Casual Dining, Northeast - bob.gershberg@dickwray.com
- VP Development, Casual Dining, East/Southeast - bob.gershberg@dickwray.com
- Dir Development Casual Dining, Southeast
- bob.gershberg@dickwray.com
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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A large number of hotels today, both upscale and budget chains, are competing
to upgrade their accommodations and offer special extras in an effort to
appeal to the growing demand for comfort by today's travelers and get the
edge on the competition. Pushed by WESTIN's success with
its Heavenly Bed, hotels are introducing everything from new mattresses and
linens to various sleep gadgets. RADISSON has introduced sleep number beds, MARRIOTT
INTERNATIONAL is replacing mattresses and adding new higher-thread
count sheets, down comforters and duvet covers, HILTON HOTELS is
boasting new bedding, plush top mattresses, extra pillows and user-friendly
alarm clocks, CROWNE PLAZA has hired a sleep doctor for
advice on relaxation and provides a "sleep kit" for guests which
includes an eye mask, earplugs, night light a drape clip, lavender aromatherapy
spray and a sleep CD. They also offer a "Quiet Zone" which is a
separate floor where there is no housekeeping service before 10:00 a.m. and
no kids. STARWOOD HOTELS, as well as RED ROOF INNS and
some BEST WESTERN hotels also offer a variety of new bedding
items, i.e., new mattresses, hypoallergenic and feather pillows and higher
thread count sheets.
Voters in Beverly Hills, California have approved the building of a new
hotel in the city's high rent commercial district known as the Golden Triangle.
The MONTAGE HOTEL, a $211 million project is the venture
of MONTAGE HOTELS AND RESORTS of Laguna Beach, California
and the ATHENS GROUP of Los Angeles. The Montage will replace
a row of dilapidated buildings that presently stand in the Golden Triangle
and clearing for the new 214-room, seven-story hotel is expected to start
this summer. In addition, the developer plans to donate to the city a four-level
parking structure built directly beneath the hotel after the city approves
the design.
STARWOOD HOTELS & RESORTS WORLDWIDE INC.'s executive
chairman, BARRY S. STERNLICHT has resigned. He plans to
return to his real-estate roots by focusing on his private –equity
firm, STARWOOD CAPITAL GROUP GLOBAL LLC. His resignation
clears the way for Chief Executive Officer STEVEN HEYER to
operate free of the clashes that occurred between Sternlicht and top Starwood
executives. Sternlicht has also stepped down as board chairman and will not
keep a board seat. Director BRUCE W. DUNCAN was named by
the Starwood Board to the post of chairman.
According to sources close to the matter, WYNDHAM INTERNATIONAL
INC. has put itself on the auction block. There are 142 hotels
and resorts in 10 countries within Wyndham's franchise system, including
33 it owns and leases. Wyndham has completed its years-long plan to reposition
the company. They recently reported first-quarter revenue of $282.6 million
and a loss of 14 cents a share. However, a Wyndham spokeswoman said, "We're
not commenting on market rumors and speculation." None of the larger
hotel chains are saying if there is an interest in buying the Wyndham. MARRIOTT
INTERNATIONAL and HILTON HOTELS CORP. declined
comment and there was no response from officials for STARWOOD HOTELS & RESORTS
WORLDWIDE. According to analysts, there are private-equity firms
involved in the bidding.
Summer travelers this year will notice a substantial increase in prices,
especially in hotel room rates. According to a report released by Pricewaterhouse
Coopers' hospitality group, major resort hotel rooms are expected to cost
8% more than last year and 11% more than in 2000. Rates at the RITZ-CARLTON on
Amelia Island, Fla. start at $289 a night this summer compared to last season's
$239. One night at the HYATT REGENCY CHESAPEAKE BAY GOLF RESORT,
SPA & MARINA in Cambridge, Md. Was $229 last year but starts
at $259 this summer and the RENAISSANCE PINEISLE RESORT AND GOLF
CLUB, on Lake Lanier, Ga. has taken a 20% jump in rates, with rooms
starting at $159 a night during summer weekends. Last year, a weekend night
at the CARNEROS INN in Napa, California started at $395;
however, this year's traveler will pay $475. Despite the increase in hotel
rates, not all travel prices are at record highs. According to Air Transport
Associate of America Inc., airfares in the first quarter of this year are
still about 6.7% below year-earlier levels.
Apartments belonging to some of the nation's rich and famous at the PIERRE
HOTEL in New York, are currently managed by the FOUR SEASONS
HOTELS INC., who is anxious to shed the unusual leasing and management
deal agreed to 25 years ago. They have provided the building residents
with full-service hotel amenities including room service, housekeeping
and basic maintenance. According to Phyllis Mailman, a longtime resident
of the building who is its board's chairman, said that the building's 10-member
board has voted unanimously to more forward in its negotiations with TAJ
HOTEL RESORTS & PALACES, the hotel subsidiary of Indian conglomerate TATA
GROUP to take on the management job and spend at least $35 million
to renovate the building.
Entering his 50 th year at the company, chief executive J. W. "BILL" MARRIOTT,
JR. has no plans to retire anytime soon. However, MARRIOTT's board
is often discussing a decision it will one day make and that is whether
or not to promote another family heir, most likely 43-year old JOHN
MARRIOTT or select an outsider – specifically the company's
46-year old chief financial officer, ARNE SORENSON. John
Marriott was appointed to the board in 2002 and became an executive vice
president in charge of sales, marketing and other operations a year later.
Sorenson is the financial expert who has had a central role in virtually
all the key deals shaping Marriott over the last 13 years. According to
Bill Marriott, "Someday it would be nice to have a Marriott as CEO
but whoever it is has to be the best person. I've told all my kids there's
no pathway to gold here."
A recent announcement by the pioneering chain of boutique hotels, KIMPTON
HOTEL & RESTAURANT GROUP LLC., says that there will be a billion-dollar
expansion financed by a $157 million fund. A significant portion of the money
will be provided for by a Yale University endowment according to someone familiar
with the investment. The fund will allow Kimpton to increase its portfolio
by approximately 25% over the next several years and it hopes to double the
size of the company by the year 2010. According to Kimpton, boutique hotels
make up only 1% of the 4.5 million rooms in the U.S. but are expected to grow
well ahead of other types of hotels in the next decade as the popularity of
hipper, more offbeat venues increases. The W HOTEL brand of STARWOOD
HOTELS & RESORTS WORLDWIDE INC. has been very successful and INTERCONTINENTAL
HOTELS GROUP LCS, owner of HOLIDAY INN, is entering
the boutique segment with its HOTEL INDIGO.
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| HOSPITALITY - CASINOS
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On the heels of an earlier pact to buy the namesake site in Las Vegas,
LANDRY'S RESTAURANTS will acquire the GOLDEN NUGGET HOTEL AND CASINO in Laughlin,
NV. In a disclosure in its regulatory filing, Landry's will assume roughly
$31 million in debt but no purchase price has been announced. An effort by
Barrick Gaming Corp. to acquire it fell through thus the Laughlin property
became available. According to Landry's, the acquisition of both Golden Nuggets
will likely close before year-end.
Plans have been announced for a new 4,000 room, $1.5 billion hotel and
casino project by the newly formed FOUNTAINEBLEAU RESORTS. Former
Mandalay Resort Group president and chief financial officer, GLENN
SCHAEFFER, will serve as its first chief executive. Based in Las
Vegas, the project will be built in an area that has come to life recently
with the opening of the new WYNN LAS VEGAS resort and the
$1.6 billion PALAZZO owned by LAS VEGAS SANDS CORP.
Schaeffer said that the Fountainebleau is departing from the traditional
theme-based hotels and says, "Architecture and design are the next frontier
in Las Vegas from our point of view." He went on to say that the Fountainebleau
brand hopes to be "identified by its crisp aesthetics and an overall
'cool factor' that will resonate with traveling consumers." The new
hotel hopes to attract guests who are in their mid-30's to mid-60's with
room rates expected to cost at least $300 per night.
Forecasters are predicting that the market for mobile phone gambling will
be a multibillion-dollar industry by the year 2009. TWO WAY TV AUSTRALIA
LTD. is part of that industry and is working to corner the Asian
market for gambling over mobile phones. The company has signed deals with
content developer ZONE4PLAY INC., giving it Australian,
New Zealand and Asian rights for technology to provide gambling over 3G mobile
phones. This year, Two Way TV brought rights to proprietary technology for
betting over digital television covering 26 Asian markets including Macau.
The business is already linked to Macau through its 14%-shareholder Sam Chisholm.
A joint venture between Chisholm, director of PUBLISHING & BROADCASTING,
LTD. and MELCO INTERNATIONAL DEVELOPMENT LTD.,
which is controlled by casino baron Stanley Ho, has plans for two new casinos
in the special administrative region and is among several consortiums vying
for the right to build Singapore's first casinos.
New and expensive gambling chips are making their way into more casinos.
These high-tech chips are helping casinos such as the HARD ROCK HOTEL & CASINO to
learn about every move made by the high rollers by giving them knowledge
including things like a player's average bet to where each high denomination
chip is at all times. Computer chips embedded in the plastic gambling chips
communicate via radio frequency with sensors placed under the felt table.
These chips are based on the much publicized radio frequency identification
technology (RFID) used by Wal-Mart Stores Inc. to track products from its
suppliers' factories to warehouses and onto store shelves. The technology
is also used in aerospace and health care to keep track of supplies. Now
that costs for the RFID casino chip have dropped, more casinos see them as
an investment and are using them. In the past, casinos have depended upon
pit bosses and dealers to continually estimate how much gamblers were wagering,
enabling the casinos to figure out about how much a customer spent overall
and what level of discounts and freebies he or she was entitled to. But with
RFID, human guesswork is eliminated because the chips are automatically scanned
at each bettor's position and the data is displayed on a personal computer
behind the table visible to the dealer and pit bosses. Kevin Kelly, Hard
Rock's president and chief operating officer, says, "Knowing what someone
is worth to our casinos is very important so we can provide incentives and
offers based on this information."
With hopes of more easily attracting top entertainers, GREAT CANADIAN
GAMING CORP. is working on a $95-million deal to acquire two casinos
in Nova Scotia. A company official said that the expansion makes Great
Canadian a true national gambling company with a roster of six casinos
in British Columbia and two on the Atlantic coasts. The broader strategy
is attain economies of scale by reducing the cost of booking top-flight
acts at venues such as a new 1,000-seat theatre at its RIVER ROCK casino
in Richmond. Howard Blank, a spokesman for Great Canadian, said "If
you have three or four venues across Canada, the big acts are always more
willing to make an appearance at a more reasonable price." Both K.C.
and the Sunshine Band and Paul Anka are booked at the River Rock in September.
Online video gaming is the hottest new trend. NCSOFT, established in 2001
by brothers Robert and Richard Garriott, is now putting out one online hit
after another. It is predicted that global revenue for online games will
grow to about $5 billion next year from an estimated $3.5 billion in 2005.
Ncsoft's strategy is to give people something beyond the worlds of dungeons
and dragons. They launched "City of Heroes" where gamers can design
their very own superheroes, then team up with other real people on the network
to overthrow evil forces. This product has over 130,000 registered users,
all of them paying $50 for the boxed game plus a monthly subscription fee
of $15. As the brothers continue producing successful games, Richard Garrett
says, "Online is the economic opportunity of the future".
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GRAPHOLOGY by Loretta Du Bois
Loretta Du Bois is a certified graphologist and owner of Write
Dimensions Graphology in San Jose, California, providing handwriting
analysis for individuals as well as personnel hiring. She may be contacted
at 408-268-8965 [telephone and fax] or loretta@writedimensions.com
for further information.
When people hear the word “graphology,” their immediate
reaction takes one of two turns: what’s that, or is that anything
like astrology? Graphology, meaning the study or analysis of handwriting,
and not even remotely related to astrology, dates as far back as the
time of Aristotle who observed: “Spoken words are the symbols of
mental experience, and written words are the symbols of spoken words.
Just as all men have not the same speech sounds, so all men do not have
the same writing. 1 Even the Emperor Nero pointed to a man in court and
remarked that “his writing shows him to be treacherous. 1 The great
English portrait artist, Thomas Gainsborough, would not paint a portrait
without a sample of the sitter’s handwriting, claiming that it
enabled him to capture the very essence of the subject’s personality
1 .
Today, while skepticism still reigns about this individual
psychology, more and more handwriting analysis is gaining the recognition
and credit it deserves. Graphology is being used in many businesses and
professions as a reliable personality assessment tool, not only by personnel
managers but doctors and lawyers as well. The Library of Congress recognizes
graphology as an individual psychology, and the Supreme Court stated: “handwriting,
like speech is repeatedly shown to the public ... no more expectation
of privacy ... of a person’s script than there is in the tone of
his voice.” [1973 United States vs. Mara]. Of course, police work
has incorporated the services of a handwriting analyst/document examiner
possibly longer than any other business. Handwriting analysis is also
a useful tool for self introspection, and can aid in marriage and compatibility
counseling. Bookstores are moving related text out of the realm of New
Age and into the psychology section. A large number of the businesses
in England use graphology as part of the process in hiring job applicants;
France also boasts a high number of companies who refuse to hire anyone
without first having his or her handwriting analyzed. Even American companies
are recognizing the value of graphology in the workplace, judging by
the recent increased usage by personnel directors. And perhaps best of
all, it does not discriminate.
One reason for much of the doubt that surrounds graphology is that
too many analyses tend to be couched in general terms that could easily
apply to most of the population, and many are saturated with clichés
and special terms that only another graphologist might understand. Fortunately,
more uniform standards have been adopted and professional criteria for
receiving certification is prevalent. Also, thanks to more respected
and reputable graphologists, the science of handwriting analysis is becoming
an officially accepted discipline.
What makes for the numerous differences in writings and why is there
so much difference from individual to individual?
Handwriting is referred to as “brain writing” because
it reflects our unconscious behavior at the time paper and pen meet.
When we pick up the pen to write something, three aspects come into play:
physical, mental and emotional. You must hold the pen with part of your
body, you must have intelligence to communicate with written symbols,
and your emotions are guiding everything you do.
The best professional analyst will consider both a holistic
assessment of the writing example as well as the individual strokes.
Initially, the analyst will look at the overall arrangement and appearance
of the writing: use of the page, margins, balance, form, style of writing.
This is much like looking at a painting for the first time to create
an impression. After that begins the investigation of strokes, baseline,
size, letter formations, spacing, and pressure and more. The combination
of these two sets of criteria produces for the client a much more accurate
and in-depth analysis.
By taking individual handwriting components one at a time, we can determine
what each tells about the writer. For instance, we might start with the
slant, move to the size of the letters, look at the pressure, and measure
the margins, to name a few techniques. However, any graphologist worth
his or her salt is going to tell you that an analysis is never based
on just one trait or characteristic, but that a handwriting must generally
demonstrate several traits that mean the same
thing. Therefore, while the analysis takes place one trait at a time,
it is imperative that the whole piece of writing be considered. By the
same token, be wary of someone who will analyze your writing just from
your signature alone, which is what we create as part of our public persona
and seldom gives the complete picture.
What can handwriting analysis tell us? 2
• how the writer relates to other people: friendly or reserved?
sociable or
antisocial? aggressive or submissive?
• the writer’s mental acumen: methodical? investigative?
analytical? intuitive?
• the writer’s ego: strong, weak, battered, or well developed?
• the writer’s energy level: does he tire easily? can he
work all day and party all
night?
• the writer’s fears and inhibitions: how much does past
influence affect the
today’s decision and performance?
• the writer’s self-discipline: does the writer know the
difference between right
and wrong? what is his level of integrity?
What can handwriting analysis not tell us?
• the writer’s sex
• the writer’s age
• the writer’s preferred hand, left or right
While handwriting analysis can reveal a tremendous amount of helpful
and important information, it cannot reveal everything.
The complexity of the human spirit does not lend itself to 100% interpretation
. 2
What might a manager look for when hiring or promoting an employee?
Depending, of course, on the specific job requirements, some of the basic
criteria for any successful employee would be organizational skills,
responsibility, integrity, mental acumen, flexibility with control, communication
skills, and compatibility, a very important component in the workplace.
Can handwriting reveal these traits? Yes. A competent graphologist will always remember
that the entire writing sample must be considered and there must be evidence
of at least four or five [more the better] repetitions to indicate a
habit - something the writer does automatically without thinking about
it.
As the hiring process becomes more competitive with greater diversity
among the field of candidates, it will become more necessary for the
employer to use as many strategies as possible as part of the hiring
process. What better way to learn if your prospective employee is a team
player, is responsible, can think “on his feet,” or even
has the stamina to keep up with the demands of the job, than by looking
at his or her handwriting. After all, we are what we write.
One can only assume that many people remain skeptical about this valid
science because they do not have enough information about the subject.
Some may have encountered an incompetent analyst or more likely, others
may have never even thought about the subject. In either case, it would
be difficult to believe that any rational person would not see the correlation
between the brain and the pen. We must begin to realize the many benefits
this study can provide for our society, and human resources. Only then
can certified graphologists begin to find their place alongside their
more established scientific brethren.
1 Loyal V. Brush, Handwriting Analyst Handbook (Overland Park, KS:
Loyal V. Brush, 1986) 1-6.
2 Sheila Lowe, The Complete Idiot's Guide to Handwriting Analysis (New
York, NY: Alpha Books,
1999) 24.
Health Smart Meetings ~revolutionizing the meetings
industry~
By: Ilene Gershberg
“Health Smart Meetings”, a division of Ilene on Health,
LLC, partners with professional organizations, convention centers and
corporations to develop powerful on-site wellness cultures world-wide.
Health Smart Meetings revolutionizes the meetings industry, upgrading
the convention experience and quality of life for conference attendees.
Here is how and why:
The new corporate style is now referred to as “the
high commitment model”, according to an article published in a
2005 issue of Fortune Magazine. This model suggests that the executive
lifestyle should revolve around work and not much else. Now many managerial
professions require an additional 10-15 hours a week. Consequently, compelling
statistics confirm enormous business costs have resulted from this rigorous
work ethic. Presenteeism, defined as decreased productivity in the workplace
due to employees functioning in poor health, costs corporate America
$250 billion a year. Productivity losses represent a crippling 3-4 TIMES
escalating health care costs.
The Result: an enormous increase in corporate wellness
initiatives. According to the Wellness Council of America, investment
in workplace wellness is growing rapidly both nationally and internationally
as thousands of businesses currently reap the enormous benefits of embracing
a positive health and fitness culture for their professional team.
A Resounding Benefit: a gold medal opportunity for the
meetings industry to join in this proactive trend toward improving the
executive work culture. Professional associations, corporate business
communities and conference centers are positioned flawlessly to serve
as ‘industry leaders’ in this exciting and progressive endeavor.
Some Key Questions & Answers:
1. How does “Health Smart Meetings” revolutionize
the meetings industry by embracing a wellness culture?
Health Smart Meetings apply best practices discovered
through millions of dollars in research published by The Wellness Council
of America, The American College of Sports Medicine and The Institute
of Health Promotion Management, to name just a few. Documentation and
award winning results pave the way for SUCCESS!
- Health Smart Meetings implements the powerful wellness culture that
boasts great ROI’s and increased productivity, applied within
a conference format, thereby setting a new standard for event planning.
This model appeals to high-level professional associations and corporate
entities.
- Health Smart Meetings groundbreaking culture can be applied to any ‘industry
specific’ organization, providing customized options and the
administrative control meeting planners need to do their job.
- How does “Health Smart Meetings” meet reputable high
standards, distinguishing key organizations as leaders in the industry?
Health Smart Meetings enhance the mission committed to
delivering top levels of satisfaction at the conference venue, by integrating
innovative corporate wellness programs. Health Smart Meetings introduces
a menu of services addressing individual and tailored needs of Executive
Attendees within their specific industry. Packaging options vary based
on needs, but are executive lifestyle specific customized to the attending
organization or professional group. They are categorized as follows:
Keynotes Executive ‘How To’ Training
Work-site Wellness Best Practices Family & Healthy
Fun
Pre & Post Conference Tele-seminars Nutritional Features
Spousal Support Programs Spa Services
Customized In-room Wellness Tips Specialized Coaching
In-room Healthy Baskets Executive Healthy:
Executive Interactive Seminars Reality Challenge
Special Assn’ Fund Raisers
- What new outcomes does Health Smart Meetings contribute?
Meeting planners are charged with designing exciting/out
of the box events targeting both personal and professional development.
An on-going objective is to provide a setting that encourages maximum
productivity and networking opportunities for attendees. Health Smart
Meetings offer new, distinctive and memorable experiences successfully
meeting those goals while introducing the following ROI outcomes:
- Fitness involvement has proven to boost energy levels and vitality
…increasing attendees ability to process new information
and problem solve for future business development
- Personal Development enhances self-esteem and feelings of self worth
…additionally creating a positive, fun and infectious
attitude among attendees during the event
- Fitness Activities provide new networking options for attendees
…sporting an empowering, spirited and trend setting
venture
- Executive Health & Fitness Training provides attendees with
greater take-away value for personal and professional productivity
…targeted ‘how to’ lifestyle strategies
trouble shoot and improve post-event quality of life
- Pre and Post-conference Teleseminars help attendees maximize the
many benefits they can receive from the Health Smart Meetings experience
…increasing program participation and success
- 1-on-1 Coaching and Follow-up programs support and help insure implementation
success of newly established wellness goals
…both for the individual and group wide
- How does establishing a wellness culture conference-wide satisfy
the buying needs of our direct customer…the meeting planner?
In the final analysis, it is essential that Health Smart
Meetings exceed expectations and out deliver traditional conference planning
options. It achieves this by:
- Creating a world class conference experience
- Providing the power to customize details while planning
- Offering program flexibility to meet diverse industry requirements
Introducing additional benefits at the convention center venue
- Maximizing personal and professional development outcomes
- Becoming a partner in the event organizational process
- Contributing to the growing national success of the corporate wellness
culture
Health Smart Meetings represents a “WE CARE ABOUT
YOU” attitude at the highest level, a clearly valued customer service
mission.
…It is often said, “People won’t care
about what you know, until they know…that you care about them
first.”
…A valuable message that Health Smart Meetings
helps associations and corporations project to their attendees
Health Smart Meetings enhances your position as leaders
in the industry; upgrading conferences services…take away benefits
and ultimately providing executives with a longer higher quality of life…,
which is the premier gift for all!
For more information on Keynote Speeches, Corporate
Wellness Consulting, Conference Wellness Culture Strategies or Executive
Health & Fitness Programs contact:
Ilene@IleneonHealth.com
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