Executive Connections Newsletter: Issue 62, JULY 2005
| DICK WRAY & CONSULTANTS - MONTHLY EDITORIAL
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Written by Jim Osborn, President
With the rebound in the economy, things are changing in the hiring environment.
Demand for good, proven, experienced management is strong, while the pool
of eligible prospects is decreasing, the beginning of a labor shortage of
qualified people.
Prospective candidates are becoming more discerning in making a job change.
Now better candidates have more options often resulting in turndowns in offers,
not showing up after accepting a position, and leaving a position shortly
after starting. This is generally due to a better offer coming through after
acceptance or a current employer countering the offer from a new employer.
How does a hiring organization attract and retain highly desirable people
to its company? While there is no 100% guarantee, following are some ways
to attract and retain good executives:
- In the hiring process, insure professionalism in the process, i.e.,
being timely and responsive to interested prospects, as there are too many
other options to wait for a slow to respond employer.
- Make sure the right person is hired, has the experience needed, and
fits the culture of your organization.
- Integrate the new hires into the company, following up with them frequently
over the first 6 months where the company has the highest possibility of
losing them.
- Pay fairly, don't try to low ball them as it becomes an incentive to
continue to look for a better paying opportunity while on the new job or
before reporting to the new position.
- Treat your employees as you would wish to be treated. Make them feel
part of the team.
- Remember important dates, i.e., birthday, company anniversary and achievements.
- Meet regularly with your team to promote communication and share concerns,
with open 2-way communication, heading off and resolving discontent before
it results in losing employees. As an example, I am aware of a company
that is losing staff right and left and top management has no idea as to
why! They never created the environment where team members would tell them
the truth.
- Competitive benefits are a must to promote longevity and caring about
employees. Health care packages and 401k deferred comp plans are key to
being competitive.
Clearly, the tide is changing back to a shortage of good talent as business
continues to expand and the labor pool shrinks. The competition for sharp
people will become more intense, while informed employers will do more to
retain their people. To attract good people away from targeted companies,
employers will have to become more competitive and attractive to the highly
qualified candidates they desire. Employers won't find these people on the
Internet!
Sincerely,
Jim Osborn
VP, Dick Wray & Consultants
Jacksonville, FL
(800) 710-WRAY Office
(800) 711-9729 Fax
email: jim.osborn@dickwray.com
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| EXECUTIVE MOVEMENT
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PETER GIBBONS was named by DENNY’S
INC. as product development vice president, filling a post formerly
held by senior director of product development and executive chef TIM
SOUFAN. Gibbons formerly served as senior vice president and innovation
director at Chicago-based food marketer Noble & Associates and also
held the position of new product manager for Burger King
STEVE SAFIER was named by SUBWAY to
the newly created position of senior vice president and chief administrative
officer of the SUBWAY FRANCHISEE ADVERTISING FUND TRUST,
which develops marketing campaigns to grow the brand.
KATHERINE SCHERPING was named chief financial officer
by RED ROBIN GOURMET BURGERS INC., replacing JAMES
MCCLOSKY, who will continue to serve as a senior vice president
with additional duties beyond finance. Scherping was corporate controller
of Policy Studies Inc. and has more than 20 years of finance, accounting
and managing experience. In addition, the casual-dining chain hired EMILY
RUSNAK as vice president of human resources replacing DOUG
GAMMON, who resigned from Red Robin to become a private consultant.
JIM SKINNER, vice chairman and chief executive for MCDONALD’S was
elected to the board of directors of Walgreen Co., the Deerfield, Ill.-based
4,805-unit drugstore chain. Skinner becomes Walgreen’s 11th board member.
ENRIQUE N . MAYOR-MORA was named by DENNY’S
INC., the 1,584-unit family dining chain, to the newly created
position of vice president of planning and analysis. He will be responsible
for planning, budgeting, operations finance, and marketing analysis at
the corporate and restaurant levels.
JOHN CAMPBELL was named vice president of global development
by BLIMPIE INTERNATIONAL INC., a 1,600-unit sandwich-shop.
A 30-year veteran of the restaurant franchising business, Campbell most recently
worked as vice president of domestic development for North America for Papa
John’s and held posts at several other restaurant companies including
Arby’s, Dunkin ’Donuts, AFC Enterprises and Yorkshire Restaurant
Group.
KATHLEEN WOOD has been hired as president and chief operating
officer for the 27-unit RAISING CANE’S CHICKEN
FINGERS. Founder TODD GRAVES, who held those titles
previously, remains chief executive. The Elliot Leadership Institute, the
nonprofit organization aimed at developing foodservice executives’ skills
was co-founded by Wood who most recently served as their president.
GERRY LENEWEAVER was named vice president of people services,
a newly created position, by RUBIO’S FRESH MEXICAN GRILL,
the chain of more than 150 fast-casual restaurants. Leneweaver previously
operated AGL Associates, a consulting firm. Prior to that, he was senior
vice president of human resources at The Ground Round Inc. The company said,
too, that TIM HACKBARDT, who was vice president of marketing,
left Rubio’s to pursue other opportunities. During the search for Hackbardt’s
replacement, CHRISTY GEILING, director of marketing, will
serve as interim department head.
Former chief financial officer ROBERT MERRITT has been
retained indefinitely by OUTBACK STEAKHOUSE INC., whose
owned and franchised system of 1,215 restaurants includes the 893 namesake
chain and 178-unit Carrabba’s Italian Grills. He will receive a $50,000-a
month consulting fee until the hiring and orientation of a replacement is
completed. The financial community was stunned when Merritt, a highly regarded
veteran CFO, announced during a quarterly-earnings conference call that he
was retiring, saying it was prompted by his distaste for the current “lunacy” surrounding
Congress’ enactment of the Sarbanes-Oxley Act and its accounting standards.
KEVIN HALL, a 13-year company veteran and Culinary Institute
of America alumnus, has been named brand director, a newly created post by FIRSTWATCH
RESTAURANTS INC., operator of 52 breakfast, brunch and lunch units
in nine states. He will be responsible for marketing, advertising and guest
relations in addition to menu and quality control.
SCOTT NIETSCHMANN was named president of FUDDRUCKERS
INC., the 223-unit burger chain. He replaces BRYCE KING,
who remains Fuddruckers’ chief executive. Nietschmann most recently
was chief operating officer of Chili’s Grill & Bar, a division
of Brinker International Inc. in Dallas.
Industry veteran KEITH KINSEY has been hired by NOODLES & COMPANY,
the 110-unit fastcasual chain as chief financial officer and replaces MARY
BETH LEWIS, who recently resigned as CFO for family reasons. Kinsey
was formerly an operations executive at Denver-based Chipotle Mexican Grill.
He is the second high-profile executive to leave the McDonald’s-controlled
Chipotle for Noodles.
Consultant PATTI VENETUCCI has been hired as executive
director by the WOMEN’S FOODSERVICE FORUM.
She replaces ELLEN MOORE, who stepped down as the WFF’s
leader last month. Venetucci is a former McDonald’s Corp. executive
whose firm, PDQ Associates Inc. in Downers Grove, Ill., offers consulting
for the construction industry. In addition, the WFF also named former Compass
Group executive ANN NICKOLAS as development director. Nickolas
was vice president of sales for Compass in its Atlanta office.
MARK F . TORMEY resigned as president
of the 33-unit MAGGIANO’S LITTLE ITALY dinnerhouse
division and as a corporate senior vice president according to BRINKER
INTERNATIONAL INC. In a filing with the Securities and Exchange
Commission, Brinker said Tormey would continue as Maggiano’s president
until a successor was named.
MICHAEL NORRIS has been appointed by food and facilities
management specialist, SODEXHO USA, as president of its
corporate services division. He replaces THOMAS MULLIGAN,
a 31-year veteran of the company who announced his retirement last year.
Norris will oversee operations for the company’s corporate services
and vending divisions. He was most recently president of Loews Cineplex Entertainment
U.S.
ANGELA HORNSBY was promoted by CARLSON RESTAURANTS
WORLDWIDE to vice president of human resources for its T.G.I.FRIDAY’S
USA division. She replaces TOM SOLOMON, who left
the chain in February. Hornsby was most recently Carlson’s vice president
of learning and development. Hornsby's replacement is BETSY MURPHY,
who was the company’s senior director of learning and development.
The franchise organization at DENNY’S INC.,
the 1,585-unit family-dining chain, has been restructured. New directors
were named to head franchise development and franchise real estate, both
reporting to STEVE DUNN, franchise development vice president. DOUG
WONG, a veteran of Pizza Hut, Arby’s and Church’s Chicken
and former operations vice president for CVM Atlanta, will head new-operator
recruitment. A 10-year Burger King veteran and a commercial real estate agent, JEFFREY
RUSSELL, will focus on franchise sites in Western states.
JAMES W . HOOD was named by NEW
WORLD RESTAURANT GROUP INC., to the bagel specialty bakery-cafe
company’s board of directors replacing JOHN S. CLARK,
who chose not to run for re-election. Hood is co-founder of marketing firm
Bray Hood Associates of Essex, Conn.
MATT DURBIN was named by CARLSON RESTAURANTS
WORLDWIDE as beverage marketing director for its T.G.I. FRIDAY’S
U.S.A. chain. Formerly associate
marketing manager for E. & J. Gallo Winery, Durbin, will develop new
beverage programs. He also worked at T.G.I. Friday’s for an eight-year
stint in a variety of posts including bartender, manager and general manager.
The duties of beverage marketing director previously were held by STEWART
SLOCUM under the title of director of beverage marketing and research
and development who will now serve as director of brand strategy after
Carlson decided to restructure the position.
Senior vice president of the NATIONAL RESTAURANT ASSOCIATION for
government affairs and public policy, LEE CULPEPPER, has
resigned to join WALMART STORES INC. as vice president for
federal government affairs. Culpepper served with the NRA for 12 years and
joins Bentonville, Ark.-based Wal-Mart this month. NRA chief executive STEVEN
ANDERSON said planning has begun to find a successor. ROB
GREEN, vice president of federal relations, and ALLISON
WHITESIDES and BRENDAN FLANAGAN, both directors
of legislative affairs, remain as key personnel on the NRA’s lobbying
team.
DENIS HENNEQUIN has been named by MCDONALD’S
CORP. to president of the chain’s struggling European division.
Hennequin succeeds RUSS SMYTH who McDonald’s said
is leaving the 6,200-restaurant division for personal reasons. A 21-year
McDonald’s veteran, Hennequin currently is executive vice president
of McDonald’s Europe. Also promoted was GLEN STEEVES.
He will take over the newly created position of chief operating officer
of McDonald's Europe division, reporting to Hennequin. Steeves is senior
vice president of McDonald’s Europe.
BRINKER INTERNATIONAL INC ., based here, named TODD
DIENER president of CHILI’S GRILL & BAR for
the second time, effective immediately. Diener had been serving as interim
president since February, when WILSON CRAFT resigned from
the company. During Diener’s time as interim president, he also served
as Brinker’s chief operating officer. He previously was Chili’s
president from 1998 to 2003. Brinker said it has no plans to fill the COO
post vacated by Diener.
KENNETH KEYMER will be installed as chief executive by
Popeyes parent AFC ENTERPRISES effective September 1, 2005.
He will replace FRANK BELATTI who remains as chairman. Before
serving as president of Popeyes, Keymer was co-CEO at Noodles & Co. Belatti,
who founded AFC in 1992 said, "Ken is a highly regarded leader with
an impressive track record of growing brands through his extensive operational
and strategic experiences."
Three new executives have been hired by CATALINA RESTAURANT GROUP,
parent of the family-style Coco’s Bakery Restaurant and Carrows Restaurant
chains. DEBBIE FRANK was named vice president of risk management.
She previously was an account executive at Lockton Insurance Brokers Inc.
of Los Angeles. She also worked with Denny’s and the old Prandium Inc.,
former parent of El Torito. A 24-year Prandium veteran, JAN MILLER,
was named Catalina’s vice president of human resources. PETER
MEHRBERG was named senior vice president and general counsel. Previously,
he served as vice president of business development and general counsel at
Peet’s Coffee & Tea Inc.
Burger King’s former senior director of research and development, PETER
GIBBONS was hired by DENNY’S CORP.
as vice president of product development. Most recently, Gibbons was senior
vice president and director of innovation at Noble Associates in Springfield,
Mo.
STAN SWORD was appointed to the post of chief people
officer by APPLEBEE’S INTERNATIONAL INC.,
operator or franchisor of more than 1,700 casual-dining restaurants. He will
replace LOU KAUCIC, effective Aug. 8. Kaucic is retiring
after eight years with the company. Sword will lead the company’s human-resources
team in his new role.
BRUCE T. FERY was promoted by THE GRAND AMERICA
HOTELS AND RESORTS to executive VP of hotels. The hotel division
consists of independently owned properties by Earl Holding including, The
Grand America Hotel in Salt Lake City, UT; Little America properties in
AZ, WY and UT; and The Westgate Hotel in San Diego, CA.
CARLSON HOTELS WORLDWIDE FOR THE AMERICANS appointed YVONNE
LA PENOTIERE to president.
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| NEWS
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TIM TIMOTEO , president and CEO of R. J. GATORS announced
that DOUG and JACKWALLACE have
signed a deal to open five R. J. Gators restaurants in Broward County, Florida
over the next five years. R. J. Gators recently opened its 8 th company restaurant
in Stuart, Florida setting record sales. This year, they will add 12 new
franchise locations to their current 15. The company currently has development
agreements to open over 50 additional new locations over the next five years.
R. J. Gators is a casual dining, Everglade-themed seafood grill concept based
in Jupiter, Florida.
STARBUCK’s announced that they will sell the Bob
Dylan: Live at the Gaslight 1962 CD exclusively and it will not be available
anywhere else initially. Referring to other albums that were unavailable
elsewhere such as the Grammy-winning album of Ray Charles duets, Genius Loves
Company, the president of Starbucks Entertainment, KEN LOMBARD, said “We’re
focused on providing our customers unique opportunities. We want the music
customer to think of Starbucks as a destination.”
Once again, regulators were told by KRISPY KREME DOUGHNUTS INC.,
that the company had extended the deadline for negotiating a “success
fee” with New York-based turnaround firm KROLL ZOLFO COOPER
LLC, which Krispy Kreme had hired in January to help the ailing
doughnut store operator and franchisor. Krispy Kreme and KZC agreed to extend
the deadline through July 31 according to a filing with the U.S. SECURITIES
AND EXCHANGE COMMISSION. This is the third extension this year for
an agreement on a success fee.
At the end of last month, CEC ENTERTAINMENT INC. opened
its 500th CHUCK E. CHEESE’S entertainment
center-restaurant. The new unit is owned and operated by the chain’s
largest franchisee, MELVIN ENTERTAINMENT, which operates
eight other units.
An agreement was reached by JACOBSON PARTNERS, a private
equity firm based in New York, to sell TACO BUENO to another
New York-based investment company, PALLADIUM EQUITY PARTNERS LLC.
A 220-unit BURGER KING franchisee, HEARTLAND FOOD
CORP., purchased seven stores in the central Illinois market from DRURY
MANAGEMENT INC. and DRURY-ILLINOIS INC. Heartland’s
chief executive, JEFF ROGERS, said in a statement that
his company plans to invest more than $1.2 million for remodeling and service-system
upgrades.
Moscow-based ROSTIK RESTAURANTS LTD., or RRL, owner of
Russia’s largest chicken chain has joined up with YUM! BRANDS
INC., parent of KFC and
other brands, to develop some 300 co-branded Rostik’s/KFC restaurants
over the next five years in Russia and surrounding regions. RRL agreed to
invest up to $100 million in the venture and Yum will provide up to $30 million
in loans and guarantees. In a statement issued by Yum, it was announced that
the Rostik brand would remain prominent while the KFC logo will be added
to restaurant signage. The co-branded units will sell menu items from both
chains and will be both company- and franchise-owned.
At a recent conference held in Rosemont, Illinois, TECHNOMIC INFORMATION
SERVICES’ restaurant industry analysts forecasted the brightest
outlook for restaurant sales since 1999. By year-end 2005, Technomic analysts
believe restaurant sales will increase 6.2 percent and 5.8 percent in 2006
and credit the rise in sales to the growth in disposable personal income
as well as new job creation. JOSEPH PAWLAK, co-presenter,
predicted that aggregate sales at limited-service restaurants which include
quickservice and fast-casual, would surpass those of full-service operations
in 2005. Technomic projects total sales at limited-service restaurants
will reach $169 billion this year versus full-service results of $164 billion
after evaluating the 500 largest chains in the industry. In addition, Technomic
also disclosed that casual-dining restaurants lead the full-service sector
and generate 67 percent of total 2005 sales, followed by family dining,
which takes up 30 percent.
After a special committee of independent directors decided that they should
be discharged, five KRISPY KREME DOUGHNUTS executives resigned
and one retired. The company said it plans to fill the positions with existing
employees. While Krispy Kreme officials declined to release the identities
of those executives they did say that the six former executives included
four senior vice presidents who “were in the areas of operations, finance,
business development, and manufacturing and distribution.” Shortly
after that announcement, a Dow Jones report listed certain names that were
removed from the company’s website, possibly indicating that those
executives were the half dozen asked to leave. According to the Dow Jones
report, those names removed from the site included senior vice presidents L. STEPHEN
HENDRIX, who oversaw company store and associate operations; FRANK
A. HOOD, chief information officer; FRED
W. MITCHELL, head of manufacturing and distribution; SHERRY
POLONSKY, finance; JIMMY STRICKLAND, area developer
operations; and ROBERT H. VAUGHN JR., business
development and chief restructuring officer of KREMEKO INC.,
Krispy Kreme’s franchisee for the Canadian provinces of Ontario and
Quebec, that filed for bankruptcy in April.
Last month, KFC opened its eighth quick-service unit in
India and company officials said it expects to debut an additional four restaurants
in that country by year-end.
An agreement was signed by ARBY’S LLC and ARBY’S
FRANCHISE ASSOCIATION, (AFA), to execute a new management system
to align the chain’s “marketing organization with brand leadership.” Chairman
of AFA and president and chief executive of DRM, MATT JOHNSON,
an Arby’s franchisee that operates 60 units in the Midwest, said
every Arby’s franchisee is a member of AFA, and “the new management
agreement is designed to optimize Arby’s marketing in order to maximize
profitable sales for all Arby’s operators.”
Private aviation in-flight caterer, AIR CHEF, has joined
together with J/R CATERING of Oakland, Calif., to provide
meals and concierge services for flyers in the San Francisco Bay area and
plan to offer online ordering by summer’s end. The newly formed partnership
will serve the area’s busiest airports, including Oakland, San Francisco,
San Jose, Haward Executive, Concord Buchanan Field and Palo Alto international
airports.
A discrimination lawsuit filed in 1998 by a former restaurant manager infected
with the HIV virus against MCDONALD’S CORP., is being
retried in court. RUSSELL RICH, 41, of Akron, initially
won a $5 million judgment in 2001, but the Ohio appeals court overturned
the verdict and ordered a retrial because of improper jury instructions.
According to published reports, Rich was hired by corporate McDonald’s
from a franchise location to turn around a struggling store in Minerva. He
alleged that after his supervisors learned he was HIV positive, they created
a hostile work environment by forcing him to work long hours, restricting
him from handling food and canceling his medical coverage. McDonald’s
spokesman, WILLIAM WHITMAN, said the fast-food company does
not tolerate any form of discrimination and that the lawsuit is without merit.
In a SECURITIES AND EXCHANGE COMMISSION filing, HIGHFIELDS
CAPITAL MANAGEMENT said that it increased its stake in WENDY’S
INTERNATIONAL to 7.3 percent. The hedge fund and its affiliates
now own 8.4 million shares in the nation’s third-largest burger chain.
In April, Highfields disclosed that it had accumulated 6.86 million shares,
or 6.1 percent, of Wendy’s stock. Also, two other investment groups
have disclosed taking large stakes in Wendy’s International over
the last two months. Highfields made its disclosures with forms intended
for passive investors, or those not planning to influence company operations.
CAMILLE ’S SIDEWALK CAFÉ has
entered a $1.1 million agreement with one of its largest franchisees, VANTAGE
POINTS RESTAURANTS LLC, to open at least 100 restaurants in Arkansas,
Missouri and Kansas. Operations manager for Vantage Point Restaurants, TIM
LIECHTI, is also a Papa John’s franchisee in Oklahoma.
The owner of 17 Weathervane Seafood Restaurants throughout the Northeast, TERRY
GAGNER, has opened a new concept in Kittery, Maine called WEATHER
VANE’S ORIGINAL SHACK, a fast-casual seafood
outlet.
An area agreement between LENNY’S SUB SHOPS and
Houston-based CLM FRANCHISE CONSULTANTS was signedto
open 80 restaurants in the Texas counties of Fort Bend, Harris and Montgomery
over the next several years. Lenny’s founder, LEN MOORE, and
current franchisee TOM CLATTERBUCK, are co-owners of CLM
Franchise Consultants.
Venture capital firm, GROTECH CAPITAL GROUP, reportedly
is in talks to buy the 7,603-unit DUNKIN’ BRANDS chain
pending success of the French distillery giant PERNOD RICARD’s
bid to take over Dunkin’s London-based parent ALLIED DOMECQ.
Former Yorkshire Global Restaurants chairman and chief executive SIDNEY
FELTENSTEIN, 2004 International Franchise Association chairman,
is a key consultant and potential player in the Grotech-Dunkin’ deal
according to an industry source. However, in a phone interview, he denied
being a player in the Dunkin’ acquisition talks but did not rule out
future involvement if the purchase is consummated.
Known as the world’s largest winemaker, CONSTELLATION BRANDS
INC, and its three partners, BROWN-FORMAN CORP., LION
CAPITAL and THE BLACKSTONE GROUP, decided not
to offer a bid as a group to purchase DUNKIN’ BRANDS parent ALLIED
DOMECQ, Constellation Brands officials announced. According to RICHARD
SAND, chairman and chief executive, the company’s “basic
premise is always that a transaction must create value for our stakeholders.
Simply put, careful consideration and evaluation of the details. . .did
not identify sufficient value for submitting an offer.”
Senior vice president and general manager of SCHWAN’S
BAKERY INC.’s foodservice division, WILLIAM A. “BILL” COBAN,
died June 2 of unknown causes at the age of 47. Coban served in the foodservice
industry for 24 years. ANDY JOHNSTON, vice president of
foodservice marketing for Schwan’s Bakery Inc., has taken over Coban’s
duties until a replacement is named.
Four franchise agreements were signed by LA SALSA FRESH MEXICAN
GRILL, a more-than-100-unit subsidiary of CKE RESTAURANTS
INC., to open at least 19 restaurants in Texas, Missouri and Florida.
The franchisees include SOUTH FLORIDA CAFÉS INC.,
led by industry veteran STEPHEN MCDOWELL, which plans
to launch three units in the Palm Beach and Fort Lauderdale, Fla., markets; REF
HOLDINGS LLC, owned by ERIC FARR, which plans
to open the first of seven units in the Jacksonville, Fla., market this
summer; THE WHOLE ENCHILADA LLC, led by MICHAEL
KATZ, JOE SIEVE and ED THROOP,
which would debut six locations in the St. Louis region, also starting
this summer; and CALEB WRIGHT, who previously purchased
two existing La Salsa locations in Austin, Texas, and plans to open three
additional locations there.
With plans to expand the brand through New York State, QDOBA MEXICAN
GRILL and MADALEX LLC have signed a franchise
agreement with the first unit opening in September in Queens County. Madalex
is run by president SCOTT EDELSTEIN, a New York-based
business owner, and vice presidents BOB FELDMAN and ANDREW
MORGENSTERN.
YUM! BRANDS INC.'s subsidiary, PIZZA HUT,
said it had signed a deal to have its name attached to a new soccer stadium
and complex in Fresno, Texas, built for the city’s major league soccer
team, FC Dallas. The site, including a 21,000-seat soccer stadium, will be
named Pizza Hut Park.
Iraq’s first POPEYES CHICKEN AND BISCUITS restaurant
was opened by the ARMY & AIR FORCE EXCHANGE SERVICE,
or AAFES. BUTCH FREED, director of food programs for Food
and Theater Operations, said the unit is one of four Popeyes outlets that
AAFES plans to open this summer.
Last month, KNOTT’S BERRY FARM and
the T.G.I. FRIDAY’S division
of CARLSON RESTAURANTS WORLDWIDE of Carrollton, Texas, opened
a newly designed T.G.I. Friday’s at the theme park in Buena Park, Calif.
The restaurant, located in the California Marketplace outside of the park
entrance, is 7,200-square feet and includes a 1,600-square-foot dining patio.
CHARTWELLS THOMPSON HOSPITALITY was awarded the foodservice
contract for 2005 through 2006 by the Board of Education for the Chicago
Public Schools, the nation’s third-largest school district. The two-year
pact is valued minimally at $104 million and encompasses 613 schools and
426,812 students. BOB BLOOMER, regional vice president of
Herndon, Va.-based Thompson Hospitality, says that the national buying power
of Chartwells-Thompson will allow the school system to save more than $3
million a year in food purchases and operational costs.
Chicago based entrepreneurs MARK KINNARE and PATRICK
RICCOBENE have agreed to develop 10 franchised DEL TACO units
under the name ILLINOIS DEL INC. Its first restaurants
would open later this year in Algonquin, Ill., and Orland Park, Ill.
STEVEN SCHUSSLER, Rainforest Cafe founder, and Chicago-based LEVY
RESTAURANTS are partnering in Schussler’s latest food and
entertainment concept, T-Rex. Opening of the first of the dinosaur-theme “eatertainment” restaurants
is scheduled for early 2006 in Kansas City, Mo. All food and retail aspects
of the operations will be managed by Levy Restaurants, while Schussler
will spearhead design of all special effects, including animatronic dinosaurs,
bubbling geysers, an ice cave and a “fossil dig” site.
CHARLIE TROTTER agreed to open a foodservice concession
at the new Equinox Fitness center in downtown Chicago this fall. Spokesman MARK
SIGNORIO said that TROTTER’S TO GO
EXPRESS would be modeled after the existing Trotter’s to Go
in Chicago's Lincoln Park neighborhood but would not have a retail component.
The new express outlet likely would offer salads, sandwiches and smoothies.
ARBY ’S LLC, the subsidiary of
New York-based TRIARC INC., operator or franchisor of the
3,450 Arby’s restaurants, announced that franchisees have signed 14
development agreements to open a total of 28 Arby’s located in Florida,
Virginia, Iowa, Wisconsin, California, Ohio, Connecticut, Arizona, Texas,
North Carolina, Utah and Illinois. The agreements with Fort Lauderdale-based
Arby’s include two new franchisees, GRUNDY COUNTY HERITAGE
CENTER LLC, which is planning a unit for Holland, Iowa, and ADAM
VELARDE, president of CAVE ENTERPRISES INC., whose
market is Cicero, Ill, have joined in on this agreement. Arby’s senior
vice president of business development, JORDAN KROLICK,
said the chain is looking toward expansion “into new, untapped markets.”
The operator of 43 entertainment-restaurant complexes. DAVE & BUSTERS
INC., signed a lease to open a unit in New York City’s Times
Square in late 2006. BUSTER CORLEY, chief executive, said
the company expects to spend $8 million developing the unit and also plans
to open a smaller prototype this month in Omaha, Neb.
Marking the chain’s Tucson debut and second opening in Arizona, BJ’S
RESTAURANTS INC. opened its fourth BJ’s RESTAURANT& BREWHOUSE of
2005. JERRY DEITCHLE, president and chief executive, said
BJ’s plans to open two restaurants in the Phoenix market during the
next 12 months and an additional eight or more in other locations by year-end.
Seattle-based STARBUCKS COFFEE CO., expanded its Southern
China operations by increasing its ownership of COFFEE CONCEPTS LTD.
from 46 percent to 51 percent. The other 49 percent of Coffee Concepts, a
licensee of Starbucks stores in China’s Guandong province, belongs
to MEI-XIN INTERNATIONAL LTD., a Hong Kong-based subsidiary
of MAXIM’S CATERERS LTD. President
of the Asia-Pacific group of Starbucks Coffee International, CHRISTINE
DAY, stated “The decision to expand our relationship with
Maxim’s is a sign of our confidence and continued commitment to building
a great business throughout China”.
In Petoskey, Michigan, the CHINA KING BUFFET, the NEW
CHINA BUFFET in Alma and 15 other Chinese restaurants in 12 western
and central Michigan counties were raided by state police after suspected
tax fraud led police to the restaurants. A number of arrests were made
for alleged fraud, tax evasion and use of illegal immigrants as workers
against their will. Reports state that police searched 21 homes of suspected
undocumented Chinese workers and seized some $400,000 in cash and there
is an ongoing investigation looking into a possible scheme to contract
for forced illegal labor from China.
The ROSENBERG CENTER FRANCHISE 50 INDEX, developed by
the William Rosenberg International Center for Franchising at the University
of New Hampshire, ranked PANERA BREAD, operator or franchisor
of 773 bakery-cafes, as the top performer for the first quarter of 2005.
The index, which tracks the market performance of the 50 largest publicly
owned U.S. franchisors, based its ranking on Panera’s strongest monthly
performance since May 2002 - a 7.1-percent jump in same-store sales. It was
also noted was that Panera’s stock price had risen to $56.53 as of
March 31, for a 40.2-percent increase from the end of 2004. Ranked as the
worst performer was KRISPY KREME. Also, MCDONALD’S,
the index’s largest component, fell 2.9 percent for the quarter.
COLD STONE CREAMERY , is planning to expand its 47-state
chain of more than 1,000 ice cream shops to Tokyo. With an opening scheduled
for this fall, private equity firm KIACON of Japan will
operate the franchised branch. Cold Stone partnered with LAWRENCE
MALTZ, chairman of BORDERLESS INVESTMENT GROUP INC.,
the original chief operating officer of Starbucks Coffee Co., to form COLD
STONE CREAMERY JAPAN to facilitate the Japanese expansion. TAKASHI
AWADA, Kiacon’s president and chief executive, will serve
as chairman and chief executive of Cold Stone Creamery Japan.
Franchisees, LEE MALOOF and M. MICHAEL
CHARNAS, of QDOBA MEXICAN GRILL, the Denver-based
chain of more than 220 fast-casual restaurants that is an arm of JACK
IN THE BOX INC., have agreed to open an undetermined number of
restaurants throughout Iowa, including in the cities of Dubuque and Des
Moines.
In Louisville, Ky., a new-design restaurant by PENN STATION EAST
COAST SUBS has debuted featuring a reconfigured front counter
with the grill facing customers, allowing them to watch their sandwiches
being grilled and speeding service times. Also, the restaurant launched
an array of new menu items, including an oven-roasted turkey breast and
provolone sub.
Based in Rockport, Maine, NEW ENGLAND BARBECUE VENTURES has
purchased the right to franchise nine FAMOUS DAVE’S barbecue
restaurants over the next six years in Connecticut, Maine, western Massachusetts
and Vermont. JOE CLOUTIER, franchise owner, operates 15
Denny’s restaurants in Maine, Massachusetts and New Hampshire. Famous
Dave’s of America said franchisees have signed agreements for an additional
172 locations.
LANDRY ’S RESTAURANTS INC. is buying
the GOLDEN NUGGET HOTEL AND CASINO in Laughlin, Nev., as
well its previously reported purchase of the Golden Nugget in
downtown Las Vegas. After the deal between Golden Nugget owner POSTER
FINANCIAL GROUP and an earlier bidder, BARRICK GAMING
CORP., fell through, Landry’s was able to craft the deal
for the Laughlin property. On the second property, Landry’s will
assume about $31 million in debt.
Marking the chain’s third opening there in three months, DIEDRICH
COFFEE INC. opened another coffeehouse in Orange County, California.
Diedrich Coffee plans to open a total of 10 new outlets in Orange County
over the next 12 months.
According to company officials, RESTAURANTS UNLIMITED INC.,
based in Seattle, Wash., is set to open its ninth KINCAID’S
FISH, CHOP & STEAK HOUSE restaurant, in Carmel, Ind. In November,
marking the start of “an invigorated expansion plan”.
After a seven-year hiatus, ARAMARK CAMPUS DINING SERVICES won
back the foodservice contract for the UNIVERSITY OF HOUSTON,
during which CHARTWELLS, a division of Charlotte, N.C.-based COMPASS
GROUP PLC, held the contract. The Philadelphia-based company had
handled the university’s foodservice for nearly 30 years up until 1998.
Aramark would pay the university a 7.5-percent commission on sales during
the first year under tentative terms of the new contract.
While targeting other locales in Kansas, Missouri, Nebraska, Wisconsin
and Minnesota for six new units in 2006 and eight in 2007, GRANITE
CITY FOOD & BREWERY LTD. said it expects to open restaurants
in Eagan, Minn., this summer, and in Kansas City, Mo., in October.
A settlement was reached between LONE STAR STEAKHOUSE & SALOON and
the CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM, (CalPERS).
The lawsuit was filed by CalPERS in October 2001 against Lone Star chief
executive JAMIE COULTER and other Lone Star board members
over stock options and “golden parachute” perks that allegedly
cost the company and its shareholders more than $100 million since 1995 by
CalPERS, the nation’s largest public employee pension fund. WILLIAM
GREENE, Lone Star’s chairman, said, “We are pleased
to have this lawsuit behind us and are proud of the corporate governance
profile that Lone Star has maintained.”
The 181-unit Jacksonville, Fla.-based chain, FIREHOUSE SUBS,
sold the rights to develop 65 locations over the next 10 years in the Houston
and Beaumont, Texas, markets to Firehouse Subs area representative MIKE
MCCOWN, a former Houston-area vice president of Papa John’s,and
a group of investors which include Papa John’s Pizza president KEITH
SULLINS.
While Department of Health & Environmental Control investigators awaited
lab results that could confirm their link to a salmonella outbreak that sickened
more than 300 people late last month, OLD SOUTH RESTAURANT in
Camden, S.C. remained closed. DHEC spokeswoman MISSY REESE,
of the department’s
Wateree Public Health District, which is comprised of four counties in South
Carolina’s central corridor, said the outbreak was the largest incidence
of foodborne illness in the state in at least the past 10 years. The restaurant
closed voluntarily on May 24 even though health inspectors did not confirm
Old South as the source.
A food court management company based in Westlake Village, Calif., FOODBRAND
LLC, has agreed to open three new restaurants at the CINCINNATI/KENTUCKY
INTERNATIONAL AIRPORT later this year. FoodBrand would operate
a total of 11 restaurants under a nine-year contract with the airport and
generate estimated annual revenues exceeding $25 million. Qdoba Mexican
Grill and The Pub Bar & Grill are among the new eateries scheduled
to open.
The operator or franchisor of 773 bakery-cafes, PANERA BREAD CO.,
has launched a franchise relationship with PANGENERA LLC for
15 bakery-cafes in the Northern California counties of San Mateo, Santa Cruz
and Santa Clara. According to JEFF BURRILL, head of Pangenera
and a partner in Caliente Holdings of San Jose, Calif., which operates nine
Baja Fresh Mexican Grill units, the first unit recently opened in Gilroy.
A number of restaurants were recently listed as “one of the outstanding
hot dog places” in the New York metropolitan area. Featured on the
list are ARTIE’S DELICATESSEN, BEN’S BEST, BROOKLYN DINER
USA, CHEZ LENARD, DOMINICK’S, GRAY’s PAPAYA, HALLO BERLIN, KATZ’S
DELICATESSEN, NATHAN’S FAMOUS, OLD TOWN BAR, PAPAYA KING, SECOND AVENUE
DELI, SHAKE SHACK, SYD’S, THE PATIO, TOMMY’S ITALIAN SAUSAGE
AND HOT DOGS and TOP DOG.
Hourly employees at ROUND ROBIN GOURMET BURGERS must meet
certain requirements in order to work there. The CFO of
Round Robin, JIM MCCLOSKEY said recently that “When
we’re out looking for new team members, we’re not looking at
that kind of urban kind of experience”, adding that “We’re
not a racist organization. It could be called Christian values. We’re
looking for that All-American kid and the vast majority of them are like
that.”
Most upscale restaurants today are no longer strictly enforcing dress codes
as they would have ten years ago. In today's society, restaurants are faced
with the public's desire for dressing down. In San Francisco, only a small
group of high-end restaurants require male diners to wear jackets. An increasing
number have abandoned a dress code altogether and those that still have dress
codes enforce them with a lot of flexibility. More often than not, these
restaurants have to walk a fine line between appealing to younger customers,
who favor a more casual lifestyle while not alienating their older customers
who are traditionally more conservative and formal in their attire when dining.
Chef-owner of the 4-star FLEUR DE LYS restaurant, HUBERT
KELLER, says he has all but given up enforcing a dress code. He
concedes that he rarely turns away diners because of their dress and says, "Unless
they show up in T-shirts and shorts, we seat them." ROLAND PASSOT,
chef-owner of LA FOLIE, one of San Francisco's premier French
restaurants, says, "There is a new generation and you want to capture
it. You can't afford to lose them because they are your future customers."
According to recent surveys, customer satisfaction gains that drove strong
fast food same store sales growth and stock returns in 2003 and 2004 have
begun to slow down.
Executives at CENTERPLATE INC. are optimistic that several
new initiatives will turn the management company's fortunes around despite
a management shakeup, charges of racial discrimination and the cancellation
of the National Hockey League's 2004-05 season.
The SOCIETY FOR FOODSERVICE MANAGEMENT has created a Women's
Council in an effort to empower female members as well as promote their leadership
opportunities and career development. The council is the innovation of three
SFM past presidents, AMY GREENBERG, DEBI BENEDETTI and JULIE
FLIK along with its incoming president, SALLY SALTZBART-MINIER.
QUAKER STEAK & LUBE , the casual auto-themed concept's
motto is "You have to live it. You have to love it. You have to lube
it." After more than two decades running a single unit in Sharon, Pa., GEORGE
WARREN and GARY MESZAROS, founders of Quaker Steak & Lube,
decided to grow their unique concept in 1997 and launched 13 restaurants
over the following eight years. There is an aggressive expansion plan in
the works today to open an additional 50 to 60 restaurants by 2008.
A 5-year-old-fast-casual chain, RIO WRAPS, specializing
in wrap-style sandwiches and burritos has signed its first outside-of-Michigan
development agreement for the Fort Myers and Naples, Florida region. According
to TOM STEGEMAN, vice president of SHEENA MANAGEMENT,
which operates the chain, they sold the fransiches for 19 planned Florida
restaurants without having solicited any buyers.
Multiunit restaurateur FOODFIGHT INC. is vying for an
increasingly larger share of the dining segment in southern Wisconsin. They
have eight dining operations and a ninth in development. Foodfight's executives PEDER
MOREN, chairman, MONTY SCHIRO, president, and PAM
GRIMMER, vice president, plan to combine their latest concept, MARKET
STREET DINER in Sun Prairie, Wis., with a wholesale bakery and drive-thru
service.
BOB MERRITT, CFO for 15 years at OUTBACK STEAKHOUSE's notes
that he sees the casual dining segment caught between the desire to increase
market value and the desire to control costs. Saying if they are willing
to take on partners, Merritt sees great potential for smaller casual dining
companies to raise capital.
JEFFREY CHODOROW's 24 restaurants, including his flagship
location, CHINA GRILL, are full of his distinctive style,
with one restaurant labeling them "show-subinessy." Chodorow sees
himself as a foodie trapped in a businessman's body.
A recent mistake at the county's health department in New York's Suffolk
County caused thousands of restaurants to operate with expired permits. Health
officials did say that despite not having updated forms, they will continue
to perform inspections.
The practice of accepting money and freebies from food-industry trade groups
and manufacturers has become increasingly more commonplace today among many
famous chefs. The chefs, in return, are promoting the products of these groups
in their restaurants and TV cooking shows. Chefs, though, say that they only
make deals with manufacturers whose products they believe in or that they
already use. There are also some chefs that have become such well known celebrities
that they are now appearing in commercials. Emeril Lagasse is endorsing Crest
toothpaste while Mario Batali is promoting plastic wrap. Interestingly, a
few years ago, Chicago chef Rick Bayless accepted $300,000 to appear in a
Burger King commercial but was widely criticized by his peers for working
with a mass-market food company and eventually donated the money to charity.
A recent study reported last April in The Journal of the American Medical
Association suggested that people who are a little fat might live longer
than people who are thin. This study found that carrying around some extra
weight was far less mortal than a previous study had suggested. That news
has many consumers feeling relieved and they are showing less restraint when
dining out. No one, though, on either side of the food wars has said the
new report is a green light for excess.
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| FINANCIAL
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According to published reports, BURGER KING CORP.'s chief
executive, GREG BRENNEMAN, said the chain could make an
IPO as early as next year now that it has returned to growth after years
of decline and speculation about a pending initial public offering. Spokeswoman EDNA
JOHNSON, said, however, that the nation’s second-largest burger
chain has “no specific plans for an IPO.” Burger King is owned
by a U.S. investment team led by TEXAS PACIFIC GROUP and
includes BAIN CAPITAL and GOLDMAN SACHS CAPITAL
PARTNERS, which bought the chain in late 2002 in a $1.5 billion
deal.
As sales of new products aided by headline-grabbing marketing initiatives
offset rising beef costs, CKE RESTAURANTS INC., operator
and franchisor of 3,165 restaurants under the Carl’s Jr., Hardee’s
and La Salsa Fresh Mexican Grill brands, reported a 52-percent spike in its
first-quarter profits versus the same period a year earlier. Same-store sales
for the four weeks ended May 23 at CKE RESTAURANTS INC.
fell 1 percent from the previous year at the Hardee’s chain, but rose
1.5 percent at the Carl’s Jr. outlets. Same-store sales rose 11.8 percent
at Hardee’s and 9.4 percent at Carl’s Jr. for the same period
last year.
With a revenue increase of 22%, NATHAN’S
FAMOUS INC., which operates and franchises 361 restaurants, more
than doubled its fourth-quarter income from continuing operations. For
the quarter ended March 27, Nathan’s Famous reported income from
continuing operations of $221,000, or 4 cents per diluted share, compared
with $102,000, or 2 cents a share, for the previous fourth quarter.
For the quarter ended March 9, DIEDRICH COFFEE INC., parent
of Gloria Jean’s, Diedrich Coffee and Coffee People coffeehouse brands,
reported a net income of $15.6 million, or $2.91 per diluted share, compared
with a loss of $69,000, or $0.01 per share, for the same period the previous
year.
A plan was completed by FAMOUS DAVE’S OF
AMERICA to repurchase up to one million shares of its common stock.
According to JEFFREY DAHLBERG, board chairman, the company
funded the repurchase from its working capital and cash flow. “We
are extremely pleased that the company completed the repurchase of an additional
one million shares under its second authorization” Dahlberg said. “We
remain committed to enhancing value for our shareholders and have not ruled
out the possibility of further repurchases.”
For the period ended May 29, DARDEN RESTAURANTS INC.,
owner and operator of 1,381 casual-dining restaurants, reported a 59-percent
increase in fourth-quarter profits on revenues that jumped 2.6 percent. Net
earnings for the most recently completed period were $84 million, or 52 cents
per diluted share, versus $52.7 million, or 32 cents per share, in the previous
fourth quarter.
A second-quarter loss was posted by MAX & ERMA’S
RESTAURANTS INC., owner and operator of 78 Max & Erma’s
casual dinnerhouses, after booking a $1.45 million asset impairment charge
for the planned closure of two restaurants and the write down of assets
at four underperforming units.
A 19-percent-higher earnings for the third quarter was posted by SONIC
CORP., operator and franchisor of 2,826 drive-in restaurants,
while revenues climbed 15 percent. For the quarter ended May 31, Sonic
reported net income of $422.7 million, or 35 cents per diluted share, versus
$19.1 million, or 31 cents a share, for the previous third quarter.
A sharp plunge in second-quarter earnings was reported by MERITAGE
HOSPITALITY GROUP INC., operator of 48 franchised WENDY’S units
and three franchised O’CHARLEY’S restaurants,
as sales at its Wendy’s units declined and expenses for the opening
of additional O’Charley’s restaurants increased.
For the four weeks ended June 24, CBRL GROUP INC. said
comparable-restaurant sales at its Cracker Barrel Old Country Stores climbed
3.3 percent, with a 4-percent-higher average check. At CBRL’s Logan’s
Roadhouse restaurants, comparable-restaurant sales rose 1.9 percent, while
the average check was 2.2 percent higher.
Same-store sales for company-owned restaurants at YUM! BRANDS INC.
rose 6 percent in the United States for the four weeks ended June 11, with
increases of 7 percent at Taco Bell and 12 percent at KFC, while results
were flat at Pizza Hut. Also, according to the company, systemwide sales
in its China division were flat for the four-week period, as a result of
the discovery earlier this year that an industrial dye linked to cancer had
tainted two KFC products, which were pulled from the menu.
A filing of the financial results for its fiscal year 2006 first quarter
ended May 1 were delayed last month by KRISPY KREME DOUGHNUTS INC.
but it is expected that they will report a loss for the period as sales fell
17 percent from the prior year’s first quarter. This most recent net
loss would be the company’s third fiscal period in the red over the
last four fiscal quarters.
With an announcement that it had agreed to pay $517,000 in attorney fees
and costs related to lawsuits filed June 5, 2003, and August 7, 2003, AFC
ENTERPRISES INC., operator or franchisor of 1,818 Popeyes Chicken & Biscuits
outlets, came a step closer to resolving two years of consolidated and derivative
shareholder litigation that stemmed from AFC’s restatement of earnings
for fiscal 2000 and 2001 and the first three quarters of 2002. Saying that
it had agreed to pay the attorneys fees and expenses to the plaintiffs’ counsel,
the company said that no damages would be paid by the AFC directors or officers
who were defendants.
In a filing with the Securities and Exchange Commission, PERSHING
SQUARE CAPITAL MANAGEMENT, a large investor in WENDY’S
INTERNATIONAL INC., disclosed that it had hired private equity
firm BLACKSTONE GROUP LP as a financial advisor to help
explore strategic alternatives to increase the value of Wendy’s stock.
In the April filing, Pershing, a New York-based hedge fund, disclosed that
it had purchased 320,500 Wendy’s shares and options for another 10.2
million shares, which if exercised could give it a 9.3-percent stake in
the multichain operator and franchisor. Pershing’s April filing had
indicated that it might encourage Wendy’s to spin off one or more
divisions, sell assets, refranchise or do a restructuring that could include
a conversion to a real-estate trust.
WORLDWIDE RESTAURANTS CONCEPTS INC ., whose Sizzler chain
has 310 company-operated or franchised units, wrote down the goodwill of
the company’s 21-unit PAT & OSCAR’S chain
to $0 in conjunction with Worldwide’s previously reported agreement
to be acquired by an Australian private equity firm, PACIFIC EQUITY
PARTNERS. The writedown, however, will not affect the $208 million
proposed purchase according to Worldwide.
Third-quarter earnings increased almost tenfold at LUBY’S
INC., operator of 133 cafeterias, primarily in Texas, as samestores
sales jumped 6.5 percent and operating costs as a percentage of sales declined.
Same-store sales for the four weeks ended June 1 at BRINKER INTERNATIONAL
INC., rose 5.8 percent companywide, with increases of 6.8 percent
at Chili’s Grill & Bar, 3.5 percent at Romano’s Macaroni
Grill, 6.7 percent at On the Border Mexican Grill & Cantina and 2.5
percent at Maggiano’s Little Italy.
The operator/franchisor of more than 200 steak and ribs restaurants, TEXAS
ROADHOUSE INC., filed a registration statement with the U.S. Securities
and Exchange Commission for the secondary offer of 2.5 million shares of
common stock. Selling shareholders are to offer 2.1 million shares, and
the company would offer 350,000 shares.
Worldwide same-store sales rose 1.8 percent in Mayaccording
to MCDONALD’S CORP. For the month,
U.S. comparable-restaurant sales jumped 4.2 percent, while McDonald’s
Europe division divulged a same-store dip of 1.4 percent for May.
Owner of the 44-unit casual-dining and entertainment chain, DAVE & BUSTER’S
INC., posted a nearly 27-percent increase in first-quarter earnings
to $4.6 million, or 30 cents per diluted share. In the previous first quarter,
the company earned $3.6 million, or 25 cents a share.
Fourth-quarter profit plunged 71 percent at BOB EVANS FARMS INC.
as same-store sales fell 3.4 percent at its 591-unit namesake family restaurant
chain. The company blamed flagging customer traffic, ineffective service,
and value initiatives.
Operator of seven casual-dining restaurants, KONA GRILL INC.,
filed with federal authorities for an initial public stock offering to raise
$29 million. The proceeds are allocated for new-restaurant development, working
capital and general corporate purposes. It was not disclosed by Kona how
many shares it would offer or at what price. The stock will trade on Nasdaq
under the symbol “KONA.”
Same-store sales for the four weeks ended June 1 at RYAN’S
RESTAURANT GROUP INC., owner operator of 346 grill-buffet restaurants,
fell 2.8 percent. Ryan’s said that total sales rose 1 percent to
$67.1 million for the period.
For the four weeks ended May 25, DENNY’S
CORP., operator or franchisor of 1,585 restaurant, said same-store
sales had risen 6.4 percent at company-owned Denny’s outlets.
Theoperator of 16 upscale restaurants, SMITH & WOLLENSKY
RESTAURANT GROUP INC., reported a 4.1-percent decline in same-store
sales for the four weeks ended May 30, but said consolidated restaurant
sales had risen 2 percent to $10.5 million.
Comparable–store sales for the four weeks ended May 29 at STARBUCKS
CORP., operator or licensor of 9,481 coffeehouses, increased 7
percent at company-owned outlets. Consolidated net revenues rose 23 percent
to $496 million for the period.
Richmond Heights-based PANERA BREAD reported a 10.3-percent
jump in systemwide same-store sales for the four weeks ended May 17.
For the four weeks ended May 22, PAPA JOHN’S
INTERNATIONAL INC., operator or franchisor of 2,859 pizza delivery
units, reported a 3.7-percent increase in domestic systemwide same-store
sales versus year-earlier results for that period. The company said that
total systemwide international sales increased 15.8 percent on a constant-U.S.-dollar
basis.
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| RESUME TIPS
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By: Bettie Biehn
Put That Resume to Work!
In prior columns, I’ve talked a lot about what to say, how to say
it, what format to use, where to place key information, things to keep in
mind, who should write it and keeping it error-free. The “it” I’m
referring to is your resume, of course. Everyone knows that you have
to have a resume. But why? What makes this one document so important
in your job search? It might help to list some reasons we need a resume – a
current resume – and some of the ways we use it.
The obvious use for having a well-written, attractive resume is in a job
search. A resume is the one document that puts you out there, in full view
of a prospective employer, and enumerates all your wonderful qualities. Unless
you have an inside helper at the company who can pave the way and speak on
your behalf, the resume has to open that door, make that employer want to
call you for an interview. Thus, all the other advice, like “put the
good stuff up front,” “be completely honest,” “craft
an easy-to-read, easily understood, to-the-point resume,” feeds into
a document that beckons a possible new boss to want to talk with
you. In most employment circles, professionals agree that a dynamite resume
is a must-have in a job search.
Keeping your resume current is also important. Let’s say you get
asked to speak to a group at your child’s school, or to address a gathering
at your alma mater. Often the first thing you need to produce is a biography,
a shortened and edited version of your resume. If you haven’t updated
that resume since you joined the company – ten years ago – there’s
a lot unaccounted for on your resume. I know it’s easy to forget that
resume when you’re happy in your job, and all is good – but remember,
layoffs happen, companies merge, and it’s always good to have a resume
that’s close to ready. I’ve had more than one client who has
needed a resume – fast - to apply for a job. Keeping your resume current
is also good practice in listing all the terrific things you’ve accomplished
in your current job – a nice ego boost when the world isn’t looking
so good, or you’re feeling unappreciated.
Think of a resume as the historian of your career. Like your career, it
is not a static entity, it is continually changing, adapting to newer information,
shifting format to keep up with current demands, and it should always reflect you. Computer
technology makes it very easy to change your resume quickly.
Reviewing your resume periodically also helps in figuring out what jobs
you’ve liked, what you’ve liked about them, the skills you’ve
enjoyed using, the environments that work for you, and thus can point the
way to that dream career. Putting things down in black and white is, I find,
a most useful exercise in sorting things out.
So get that resume up and running, keep it current, and use it. Work that
resume!
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.
- VP & Director of Real Estate, West Coast
- VP Operations, West Coast
- COO, Family Dining, Midwest
- Director of Franchise Operations, West Coast
- Director of Purchasing, West
- VP Operations & Development, QSR, West
- VP Operations, Southeast QSR
- Director of Franchise Sales, Southeast
- RVP Operations, Southeast
- Director of Purchasing, Southeast
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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Actress DORIS ROBERTS, the mother from “Everybody
Loves Raymond, was hired by KFC as the promotional spokeswoman
for the chain’s “Bring Back Family Dinner” sweepstakes.
The new promotion encourages families to eat dinner together by having them
log on to a special KFC website and sign a pledge to do so and they are then
automatically entered in the sweepstakes. The grand prize is a weekly KFC
dinner for a year.
According to CHRIS ARNOLD, company spokesman for CHIPOTLE
MEXICAN GRILL, a Denver-based division of MCDONALD’S
CORP., they have begun a staggered rollout of entree salads, which
are slated to be available chainwide by the end the summer. The salads,
served with a chipotle honey vinaigrette, are made fresh daily in the restaurants.
Customers can select toppings for the romaine lettuce-based salads from
ingredients already available for Chipotle’s burritos and tacos.
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| HOSPITALITY - HOTELS
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San Francisco's SIR FRANCIS DRAKE, the 417-room hotel,
built in 1928, has been sold by Sir Francis Drake Hotel Associates, a unit
of Kimpton Hotel and Restaurant Group to San Francisco's Oxford Lodging and
Advisory Group and Longwing Real Estate Ventures, a company run by former
Prudential executives that is part of the Dubai Investment Group. Kimpton
will continue to manage the hotel for the new owners' joint venture, SFD
Partners. Many changes are planned under the new ownership, including a $20
million, top-to-bottom renovation with possible expansion of the bar in the
ground floor Scala's Bistro, however, the doormen in British beefeater costumes
will stay at their posts. And, according to Mike Depatie, chief executive
officer of Kimpton Real Estate, Harry Denton's Starlight Room will continue
to be one of the hotel's star attractions. "The Starlight Room is a
San Francisco institution, and Harry Denton is an institution," he said.
According to Depatie, Kimpton Hotel and Restaurant Group sold the Sir Francis
Drake because the hotel market is coming back strong from post September
11 lows and would fetch a good price. The sale price was undisclosed.
Hotel operator WYNDHAM INTERNATIONAL INC., a public company
with 150 upscale hotels, announced that it has agreed to sell to an affiliate
of the BLACKSTONE GROUP for $3.24 billion, including $1.8
billion of debt. Even though room occupancy and average rates both rose last
year, the Wyndham lost $678 million on revenue of $966 million.
Five minutes before union workers were to be locked out of seven major
hotels, union leaders and hotel operators and union leaders in Los Angeles
tentatively agreed to a new contract. The agreement will expire November
30, 2006 and was brokered by the city's mayor-elect Antonio Villaraigosa.
FAULKNER USA , a hotel developer, purchased an equity
stake in a hotel it will build in San Antonio, Texas. The lead equity investor
in the $285 million project is Marathon Real Estate, an arm of Marathon Asset
Management. The 1,000-room property will be the largest hotel in San Antonio's
history upon its completion, expected in 2008.
.
A 108-room RITZ-CARLTON HOTEL is being planned by Vail
Resorts Development Co. and will be located in Lions Head Village, Vail,
Colorado. The Ritz-Carlton Residences will include condominiums ranging in
size from about 1,600 square feet to 2,200 square feet.
Plans are being made by Chelsea Development to tear down a building opposite
SBC Park in San Francisco and build a 10-story, $30 million boutique hotel
in its place. The developers are striving for a 2007 opening of the hotel
in time for the Major League Baseball All-Star Game.
Once-mediocre room service meals are taking on fine dining elegance as
hotels push the limits in extravagance. Some hotels offer a full restaurant
experience such as the RITZ-CARLTON and PENISULA hotels in Chicago. A spokesman
for W HOTELS in Chicago said, "It's a hotel's job to give guests what
they want when they want it and to give them a chance to wind down and relax".
City officials in Denver, Colorado tried to persuade a private developer
to build a hotel to accommodate convention-goers downtown for several years.
Since they were unable to do so after a proposed $55 million subsidy failed,
the city made the decision to build a hotel itself. Tax-exempt bonds totaling
$354.8 million were issued by the city to finance a new 1,100 room HYATT
HOTEL and funds from the hotel’s revenue will be used to repay
the bonds. More than a dozen cities across the nation are considering doing
a similar project including Baltimore, Washington and San Antonio. Critics
of this trend, however, feel that this type of hotel can expose a city to
financial risk at a time when the demand for convention space is on the decline. HEYWOOD
T. SANDERS, a professor of public administration at the University
of Texas in San Antonio believes that struggling convention headquarter hotels
threaten to drive down the room rates at competing hotels, harming the market
as a whole. Industry specialists, though, believe that a convention city’s
ability to attract meetings can depend upon whether or not there is a well-equipped
hotel nearby. MICHAEL HUGHES, associate publisher of Tradeshow
Week, says “To be successful, you need one with the other.” Also, IRENE
E. VAN SANT, project director for Baltimore’s proposed $305
million bond offering for a 750-room headquarters hotel said that meeting
planners feel that hotel availability is the No. 1 factor in why a city wins
a convention over other cities.
A large number of hotels in Manhattan are disappearing as a result of being
fully or partly converted into condominiums. With the reduction in hotel
space, scores of hotel investors are searching for properties to buy and
developers are scrambling to locate sites to build new hotels or convert
existing buildings into hotels. Hotel developer and operator, RICHARD
BORN, says, “I’m getting calls on a daily basis from
people interested in hotel deals.” And, according to reports published
by HUS International, a consulting company, and the Tisch Center for Hospitality
and Tourism of New York University, more than 2,000 rooms were lost over
the last few years to condo conversions. With fewer available hotel rooms,
the rates for a room have been steadily rising and projections are that revenue
per available room will increase 17% this year.
In New York, the REGENCY HOTEL, located at 540 Park, is
known by many of the city’s rich and famous as the in place for a “power” breakfast
meeting. Anyone from senators and political advisors to lawyers and university
deans can be seen meeting over $17 omelettes, making deals, raising money
and building connections. ANDREW H. TISCH, a director of
the Lowe’s Corporation, which owns the hotel, says, “It’s
a great place to be seen without being heard.” According to Tish, the
Regency’s roots as a power dining spot started during the fiscal crisis
of the 1970’s when business and civic leaders began meeting in the
back room of 540 Park to work through a solution to the city’s problems. GEORGE
ARZT, a veteran of the city’s political scene states that, “You
can see people here you can’t get on the phone.”
With the increase in competition, a new trend among top hotels is enlisting
the assistance of luxury consultants. These consultants are working to reinvent
the five star experience. According to LIONEL MEYER, a seminar
teacher for LUXURY ATTITUDE, a Paris consulting firm, “Luxury
means being recognized”. The HOTEL METROPOLE in Monte
Carlo hired Meyer and the firm’s president, ERIK PEREY to
examine every aspect of the service it provides and to train its staff accordingly.
The DORCHESTER in London engaged the services of ANN
STYLES and her firm, GREEN INK to consult with
on its approach to service. Styles executes what she calls “service
refurbishment”. NIGEL BADMINTON, manager of the Dorchester,
characterizes Styles’ approach as “less about finding what’s
wrong and more about finding what’s right. Most hotels focus on the
hard skills: ‘Serve from the left’. Here, it’s about getting
the touch-feely right.” The approach to building a luxury service experience
is less formal in Asia. All of the employees at THE ORIENTAL in
Bangkok are sent to a Buddhist monastery for a week to absorb the spirit
of what service should be, for example, portraying a certain gentleness,
never saying no, thinking of others. AMAN RESORTS properties
make attention to personal interactions a key element of its service and
it incorporates local customs and attitudes at each of its resorts.
Earnings per share at MARRIOTT INTERNATIONAL INC. are
expected to grow at an annual rate of 17% to 22% through the year 2008 on
expanded market share. The forecast, according to Marriott, assumes growth
in revenue per available room, known as Revpar, of 8%-10% for 2005 and 4%-8%
from 2005-2008. Revpar is an industry method of measuring room rates and
occupancy. Marriott also said that it expects to add 75,000 to 90,000 hotel
rooms to its worldwide hotel system from 2006 to 2008 while increasing its
European presence 15% by 2009 and plans to have 75 hotels in China within
10 years.
DIAMONDROCK HOSPITALITY COMPANY has acquired from a New
York based real estate investment fund a 2,330 room portfolio of four full-service
hotels.
Luxury hotels are continuing their expansion throughout Asia. The RITZ-CARLTON
HOTEL, has opened a 333-room hotel in Jakarta and HYATT
INTERNATIONAL opened a 185-room location in Seoul, South Korea.
The Ritz-Carlton Jakarta is featuring introductory rates of $158 on weekdays
and $138 on weekends, including breakfast, and will be in effect through
the end of August. The Park Hyatt is located directly opposite the convention
center with opening rates starting at $300 a night.
A fund to invest more than $450 million and expand its holding by more
than 25 percent over the next two years and 100 percent by 2010 was launched
by KIMPTON GROUP HOLDINGS LLC, parent of boutique hotel
and fine-dining restaurant operator KIMPTON HOTEL& RESTAURANT
GROUP LLC. Kimpton plans to acquire, develop and redevelop boutique/lifestyle
hotel sites in major metropolitan cites and resort areas, including New York;
Boston; Washington; Miami; Los Angeles; Napa Valley, Calif.; San Diego; Seattle;
and Chicago. They currently operate 39 hotels and restaurants nationwide.
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HARRAH'S ENTERTAINMENT INC . has been re-established as
the largest gambling company in the world with more than 40 properties in
12 states and three countries with the acquisition of CAESARS ENTERTAINMENT
INC. Harrah's bought Caesars for $1.87 billion in cash and $3.27
billion in stock.
Hoping to promote more than just gambling, Las Vegas' new ad campaign is
highlighting the extravagant shopping and gourmet dining experiences within
the city. This new campaign
elaborates on the "What happens here, stays here" slogan and
promotes the decadence available in restaurants from famous chefs like Emeril
Lagasse to the high-end fashions available at many resorts.
A report issued by a consulting firm, THEANALYSIS
GROUP, states that revenues last year at Indian casinos continue
to increase at a rapid rate. With revenues of $19 billion, these casinos
are now two-thirds as big as commercial casinos. These results are important
given the fact that Indian casinos have become a hotly debated issue in
many regions as their revenues have exploded. The Analysis Group emphasized
the increasing economic effects of Indian casinos, not only for the tribes'
welfare, but also for those communities, business, taxpayers and politicians
close at hand. MARK VAN NORMAN, the executive director
of the National Indian Gaming Association, said Indian casinos were very
likely to keep growing especially in places like Florida where Governor
Jeb Bush agreed to allow the Seminoles to install slot machines in their
casinos and in the Catskill region near New York City as part of a land-claims
pact proposed by Governor George E. Pataki.
TRUMP ENTERTAINMENT RESORTS INC . appointed JAMES
B. PERRY to chief executive. Perry is the former chief executive
of Argosy Gaming Co., which operates riverboat casinos. According to chairman, DONALD
TRUMP, Perry will remain a director of Trump Entertainment, created
in May when its predecessor, Trump Hotels & Casino Resorts, emerged
from bankruptcy. In the old company, Trump has been both chairman and CEO
but he is now concentrating on Manhattan real estate development. The entertainment
group's CEO needs to spend a lot of time in Atlantic City, N.J. where the
casino is based.
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- THEME PARKS |
With a scheduled opening for September 12 thHONG
KONG DISNEYLAND expects to draw 30,000 visitors. Tickets went
on sale July 1 st. They plan to sell only 12,000 tickets for opening
day with the majority sold online through the theme park’s Web
site. Telephone bookings will only be accepted from guests staying
at the two Disney hotels and for groups of 25 or more. The remaining
tickets will be sold through travel agents and at the park’s
ticketing booths. The theme park is a joint venture between Walt Disney
Co. and the Hong Kong government. Officials believe the park will boost
employment and tourism.
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| LAGNIAPPE |
WHY SERVICE STILL SUCKS
By Richard F. Gerson, Ph.D., CPT
It’s been 20 years since I began lecturing and consulting on
the topic of customer service. I’ve worked with companies in over
100 different industries to help them improve their customer service.
I’ve trained their front-line staff, their management teams, and
their senior executives. Everyone who was trained or in attendance at
my speeches and workshops said they understood the importance of customer
service, how much customer service would contribute to their business
success, and how to manage the service experience for customers. They
even saw increases in customer service and customer satisfaction ratings
following my work with them.
This trend has continued for the past 15 years. When my book, Beyond
Customer Service: Keeping Customers for Life, was first published
in 1992, it became a business best seller. It was revised in 1998 because
of its continued popularity. It has sold 60,000 copies and has been
translated into 8 foreign languages. Companies in countries from China,
Italy, England, France, Mexico and Spain are using the book to help
them improve their customer service and customer retention. During
this same time period, thousands of books and articles have been published
on customer service, why it’s important, how to “do it”,
and how to create loyal customers.
So, if all these books, articles, lectures, workshops and corporate
consulting gigs are available in the area of customer service, the question
is, “WHY DOES CUSTOMER SERVICE STILL SUCK?”
MEET T.C. MITS and T.C. WITS
Who are these people? T.C. MITS is The Common Man In The Street, and
T.C. WITS is The Common Woman In The Street. Get to know them well. These
are your customers. They have a great deal to tell you about customer
service, how they feel about the way you treat them, and what you need
to do to make them happy.
In fact, I’ll bet that if you asked 100 people in the street
to tell you about a customer service story that happened to them, 85-90
of those people would relate a negative story. Ask them about an airline
experience, or a restaurant experience, or trying to find a cashier in
a department store to pay for an item during the holiday season, or getting
lost in “voice-mail hell” because companies are jumping on
the automation and technology bandwagons (more on this later). Very few
people will tell you about a positive customer service experience.
Now you may run into a Nordstrom loyalist, and they will tell you how
great Nordstrom’s customer service really is. And they should,
and they deserve the opportunity to tell you about it. But, the truth
is that most customer service experiences are less than satisfactory.
Just think of your own experiences as a customer. How many would you
rate positive, and how many are negative? So you, like me, must be asking
yourself, with all the emphasis on customer service, why does it still
suck?
I believe I have the answer.
7 REASONS WHY CUSTOMER SERVICE STILL SUCKS
Going Digital
In my Beyond Customer Service book, I gave a list of 50 ways to improve
customer service. One of those emphasized High Touch over High
Tech. Obviously, not many companies are listening. Today, most
companies are enamored with automation and technology. They have determined
that High Tech must supercede High Touch. After all, using digital technology
can reduce employee costs. Technology is easier to repair or replace
than an employee. And, technology can show consumers that the company
they are contacting is in step with the times.
The problem is that automation and technology reduce the one thing
customers want most from companies, and that is human contact. Business
is a contact sport, no matter which way you look at it. People enjoy
doing business with people. They don’t enjoy doing business with
computers, interactive voice response systems, automated menu systems,
etc. They enjoy the social aspects and relationship-building aspects
of communicating and interacting with people. Why do you think over 70%
of all recent Customer Relationship Management projects have failed to
produce the desired return on investment? It’s because they are
so technology oriented and not people oriented.
The bottom line is still that customer service is an interactive sport.
It involves people working with and helping people. I’m not saying
you should discard or disregard technology and how it can help improve
customer service. I’m saying focus on the people, the service providers,
and then use technology to support their work. Don’t replace them
with technology.
So, the first reason customer service still sucks is that companies
have replaced human contact with automation and technology. We need a
return to High Touch first, supported by High Tech. People want to deal
with people in service situations, not with avatars and digitized voices.
If you want to improve customer service, satisfaction and loyalty, “people-cize” your
service efforts.
Training to be Nice
The next two reasons service still sucks are highly related. Since
customer service reps are usually the lowest paid employees in a company
(this in itself is an anomaly and part of the reason service is so terrible
still), many companies hire just about anyone to fill those positions.
It is a well-known fact that if you do not have a proper employee-job
fit, performance will suffer. In the case of service providers (front-line
employees such as desk clerks and call center agents), this is a recipe
for disaster. Why would you hire someone just to fill a position when
that person has no idea how to provide great service?
I have always told my clients that you can train customer service skills
(we’ll talk about that in a moment), but you can’t train
niceness. Nice people have to be in service positions. Nice people who
want to serve other people must be your front-line staff. Niceness can’t
be trained, but it sure can be seen. These are the people you want to
hire for your customer service positions.
For example, one company I worked with had a receptionist who was very
good with numbers and analysis (which was also part of her job), but
was very cold and gruff with people. This woman had 20 years with the
company and they certainly did not want to fire her. Yet, they felt they
could not keep her as a receptionist because she was upsetting the customers
who called or came in.
The first thing they tried to do was to send her to customer service
training classes. The company felt that if she understood the skill set
involved in providing great customer service, she would change her approach.
This did not work because you cannot train “niceness” and
a desire to serve into someone. So, they asked me what to do.
My solution was simple. We placed her in a “back office job” where
she could do her data analysis without having direct customer contact.
The company hired a more outgoing, friendly and “nicer” receptionist.
Customers began to comment how much they enjoyed talking with this new
receptionist. And this simple change led to an increase in the company’s
customer satisfaction ratings.
This story leads right into the third reason customer service still
sucks. For people who do not have the motivation to be service providers,
you cannot train them to become great customer service reps. On the other
hand, people who can become great customer service reps unfortunately
do not receive enough training.
Too often, nice people who want to serve are hired and they are told
to “go out there and help people”. This is true for retail
operations, call centers and professional services. But, it doesn’t
work. Everyone needs to be trained in customer service skills and the
impact customer service has on a business. The key to successful service
provision is hiring the right people for the job and then training them
to improve their skills in customer service.
It is very easy for me to identify those who will succeed as service
providers and those who will fail. In my training programs and seminars,
I share the characteristics of great service providers (such as motivation
to serve, nice personality, outgoing, friendly, humble, calm under pressure,
etc.) and I watch the reactions of the participants. You can see on their
faces and through their body language who believes this is the position
for them and who really wants out now. That’s part of the reason
Disney is so successful in providing a great guest experience. While
they hire more people than they need, many self-select out of the training
process for a variety of reasons. One of those reasons is the high level
of service they will have to provide.
One thing that is left out of customer service training is stress management,
and the ability to cope with and perform under pressure. Customers put
pressure on service personnel to perform, and the reps must be able to
handle that pressure. The amount of pressure varies with the job and
the company (Disney is obsessive about high levels of service, and that
is why many “cast members” opt out of working there even
before they start- too much pressure from the expectations for great
service). Customer service people must be taught how to handle that pressure
so they do not burn out. This is in addition to all the customer service
skills they are being taught and are expected to exhibit.
Lip Service Means Little or No Service
The slogans have got to blow you away. “Customers mean everything
to us”. “Customers are our most important asset”. “Without
customers, we have no business”. “The customer is always
right”. And the list goes on.
The problem is that management pushes these slogans on their people
and expects the front-line staff to charge ahead and provide great customer
service because there is a slogan of the week or a service program of
the month. It “ain’t gonna happen”. Employees are too
smart for that. They know when management is talking out of both sides
of their mouths.
Company management must walk the talk of customer service. Saying you
want to or will provide great customer service, and then making it hard
for customers to do business with you, just won’t cut it. Or, treating
your employees poorly and then expecting them to go out and provide great
customer service won’t make it either. You can’t give lip
service to customer service, yet that is what many companies today are
doing.
Companies and their leaders must lead by example. Employees and customers
take their cues, not from words, but from actions and behaviors. The
way management treats employees and customers is the way employees will
treat customers. Just as children learn by watching what adults do, employees
learn by watching what management does. Saying one thing and doing another
with regards to customer service will eventually result in two things:
Lost customers, and lost employees.
The answer is fairly simple. Managers have to say what they mean, mean
what they say, and do what they say where customer service is concerned.
When behaviors and words match, then we will see an improvement in customer
service.
You Can Have It In Any Color As Long As It’s Black
This is an old description of how Henry Ford told buyers they could
have their cars. It speaks volumes about what we call a company-centric
philosophy. Have you ever encountered a company whose policies and procedures
were set up for the benefit and betterment of the company, to the detriment
of its customers? Of course you have. We all have.
How many times have you asked a person in a company to do something
for you and they told you it was against policy? Or you were told that
the company just does not operate that way. How did you feel? Did you
get upset, especially knowing that you are paying them for something
and they are treating you this way?
Companies that make their customer service policies for their own benefit
run the risk of losing customers in droves. The idea is to make every
transaction easy for the customer. Take a look at what your customers
have to go through to make a purchase or to return an item. Is the process
easier on you or your customers? Are there written guidelines for everyone
to follow that tell them what they cannot do to serve the customer? Or,
are your customer service providers allowed to do whatever it takes to
serve and satisfy customers?
It is too easy today for customers to defect to the competition. Whether
they leave for price, product or delivery, it is easy for them to leave.
The one thing that binds them to you is great customer service. People
who receive great customer service will stay loyal, even if they can
get the same thing down the street for a few dollars less. People who
receive great customer service will stay loyal even if your company makes
a mistake where they are concerned. They will give you another chance.
But, people who have to scratch and claw to get any kind of service,
who have to deal with a business that thinks life would be great if it
weren’t for the customers, will leave you as soon as they find
an alternative. And that alternative does not have to be as good, and
the price they pay for products can be higher. The alternative only has
to have one thing you don’t: a customer-centric focus and friendly
customer service policies.
In this day and age, when the Internet allows companies to focus on
each individual customer (check out Amazon’s one-click ordering
service and product recommendations for returning customers), and people
can shop online, it is imperative for all companies to be customer-centric,
not company-centric. Customers can leave you too easily whenever they
want to. While there may be times you can’t prevent this from happening,
you should never push customers away with company-centric policies. Make
it easy for the customer to do business with you and you will earn their
loyalty and repeat business.
To Know Me Is To Love Me
You’ve heard this phrase before, or something like it in a song.
People love to be recognized. They enjoy it when you know their name
and when you compliment them on some accomplishment. The number one need
of all people is the need to be and feel appreciated. And who should
you appreciate more than your customer service reps and your customers?
One of the reasons service still sucks is that the reps do not receive
proper feedback on their service performances (if they receive any at
all). Or, they only hear negative things from management. Or they only
hear customer complaints and never get this balanced with positive feedback
from management. There are a few simple things that can be done to motivate
reps to provide great service, and they must be done immediately.
The first thing that companies must do is to develop service standards
of performance. Once reps know exactly what the company expects of them,
and how that performance impacts their customers, then the reps can perform.
They must also be given feedback on how well their performances meet
company and customer expectations. Without a measurement standard and
ongoing feedback, customer service reps will never know how well they
are doing, what they must do to improve, and what goals to set to increase
performance.
After timely feedback is provided, management must establish a recognition
and reward system for superior service performance. This shows the reps
that they are appreciated both for what they do and what they accomplish.
The two old adages, “what gets measured gets done and improved”,
and “what gets rewarded gets repeated”, are very true for
customer service delivery. Ask yourself these questions. How much will
you enjoy a round of golf if you don’t keep score? How hard will
you play in a basketball game if there is no score to tell you how well
you’re doing and who is winning? How old would you have had to
be before you could truly walk if your parents did not keep encouraging
you with positive reinforcement and feedback?
Are these silly questions? Definitely not! Every person wants to continuously
improve. They just have to be given the opportunity. You do that through
setting performance standards, establishing measurement systems, providing
timely feedback, and giving out rewards for superior service performance.
Wait. We’re not done yet with this concept. You now need to transfer
the entire approach to your customers. Help customers set service performance
expectations. Give them feedback on their behaviors and performances
as customers. Reward them for “being a good customer”. When
you do these things for your customers, you will increase their satisfaction
and earn their loyalty.
You Are The Weakest Link
Companies that provide great customer service make sure that everything
they do is focused on the customer and has a benefit for the customer.
However, since most companies are focused inward on themselves, service
still sucks. And it gets even worse because these companies fail to link
their service management and service delivery strategy to their overall
business strategy.
If you are in business to make a profit (and who isn’t?), then
you know you need to sell to customers and keep selling to them. It’s
always cheaper to sell to current and former customers than to try to
constantly acquire new customers. But, if you’re business strategy
focuses mainly on customer acquisition instead of customer retention
and repurchase, you probably will experience minimal customer loyalty
and maximum customer churn. That will always eat into your profits.
On the other hand, if your business strategy is customer-centric and
focuses on retaining the most loyal and most profitable customers, then
you will implement a service delivery system that strives to satisfy
and delight your customers. The key here is to link the entire operation
of the business to the customer. You must develop your business strategy
from the outside in, or backwards as some people have said. First, determine
what customers need, want and expect from you. Then, decide how you will
deliver that to them. Next, develop customer-friendly service policies
and procedures that will make customers loyal. Finally, do whatever it
takes to dazzle and delight your customers.
This all sounds so simple, and it really is. However, it is not easy
to implement. Service takes time. It pays off in the end, but you first
have to make a financial, physical and emotional investment in your corporate
service strategies and delivery system, hiring and training your customer
service reps, and your customers themselves.
The New Service Era
Everything old is new again. Customer service has come, gone, and come
back again. It doesn’t matter what industry you are in or how large
or small your business is. Customer service is a critical element to
your success, if not THE critical element. Based on what you’ve
read in this article, here are 7 ways to make sure customer service in
your company never sucks:
- Remember that service is a people issue. Focus on high touch first,
then high tech.
- Hire nice people and put the right people in customer service jobs.
- Train the right people in the proper skill sets and personal development
skills.
- Walk the service talk. No slogans, exhortations or cheers. Just
actions people can relate to and respond to.
- Be customer focused and have a bias for customer delight.
- Measure service performance, provide feedback, and reward superior
service performances.
- Link customer service delivery to your overall business strategy.
It will no longer be enough to have the largest marketing or advertising
budget, or to be the biggest company in your industry. Your future success
is dependent on making sure service in your company does not suck. You
must make sure it SOARS.
Author Bio: Richard Gerson, Ph.D., CPT
is the President of Gerson Goodson, Inc., a professional services firm
specializing in helping people be their best. The company helps clients
develop leaders, optimize talent and achieve more in less time with
less stress. Dr. Gerson is the author of 20 books and over 400 articles,
and is a much sought-after speaker. He can be reached at getrich@richgerson.com or
727-726-7619.
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