Defy the Tightening Talent Pool with Diversity & Inclusion

Written by: Bob Gershberg, Executive Vice President

The challenges we face as the labor pool shrinks and the need for talent increases dramatically will require more aggressive, proactive and creative methods to attract, recruit and retain the industry’s best talent. Employees at both staff and executive level will clearly have choices as the talent war begins to rage. What an opportune time to enhance diversity sourcing strategies and develop inclusive hiring metrics.

As our society becomes far more disparate in ethnicity, race and creed it is important to strive to attain a workforce, which mirrors our customer constituency. Equally as critical, our executive teams ought to mirror our overall staff. Workforce diversity is no longer driven by social or legal responsibility; it is essential for sustained growth and viability of any business in today’s global economy.

Human resource studies clearly indicate diverse groups make better decisions. Leadership teams displaying diversity in age, gender, ethnicity and sexual preference will own greater perspective due to varied insights and multiplicity of thought. Companies that embrace inclusion coupled with best people practices will weather the test of a tight labor market far better than their competitors. Moreover, they will benefit from an enriched pool with wide-ranging creativity, skills, talents and experiences.

A sound focus on diversity and inclusion is essential to achieve sustained business success in our current marketplace. The restaurant industry has been more effective than many in its efforts to attract and develop diverse teams. We do, however, have miles to go. It is imperative that we recognize the myriad of advantages and unmistakable long-term competitive edge diversity recruiting can produce. Value inclusion and drive it. The rewards will be enormous.

All the best,
Bob
Bob Gershberg, Executive VP
bob.gershberg@dickwray.com

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JOHN KAUFMAN of JSK MANAGEMENT, a restaurant industry veteran, has joined Los Angeles-based UWINK INC., as a consultant to develop the new uWink Media Bistro, a restaurant and digital-entertainment concept conceived by NOLAN BUSHNELL, founder and former owner of Chuck E. Cheese’s Pizza Time Theater and Atari. Previously, Kaufman was vice president of operations at California Pizza Kitchen, chief operating officer of the Rosti Italian chain in Los Angeles, and president and chief operating officer of the Koo Koo Roo chain.

WM . MATTHEW CARPENTER has been named chief operating officer by FRISCH’S RESTAURANTS INC., operator or franchisor of 146 full-service family-style restaurants under the Frisch’s Big Boy and Golden Corral brands. He will replace retiring PAUL F. MCFARLAND. Carpenter is a 24-year restaurant industry veteran and most recently was president of the 15-unit Zio’s Italian Kitchen casual-dining chain. He also has worked with Applebee’s International and as an independent restaurant consultant. Frishch’s president and chief executive officer, CRAIG F. MAIER, said: “We are very pleased that Matt has agreed to join us, and we look forward to his leadership in our Big Boy and Golden Corral restaurants. We wish Paul the best in his retirement.”

STELLA PREMO, the former Sacramento Hispanic Chamber of Commerce chief executive, has been named executive director of the CALIFORNIA RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION. Premo fills a vacancy created by the departure of former CRAEF leader JUDY WALKER.

DON BREEN has been hired by JAMBA JUICE, the smoothie bar chain, as chief financial officer. He formerly held that same position at the Wendy’s International-owned Baja Fresh Mexican Grill fast-casual chain. Breen succeeds JOE O’NEILL, who left to pursue other opportunities and will oversee accounting, finance, information technology, legal and supply chain functions for the chain, which had systemwide sales of about $307 million for the fiscal year ended in June.

Parent of the Hardee’s and Carl’s Jr. brands, CKE RESTAURANTS INC., announced that WILLIAM P. FOLEY has resigned as chairman of the board and as a director. He is succeeded by vice chairman BYRON ALLUMBAUGH, the former chairman and chief executive of Ralphs Grocery Co. According to the company, Foley will sell all his outstanding stock options to CKE for $11 million in cash, which the company will record as an expense in the current quarter. He held options to buy about 1.7 million shares as of July 18. Saying his resignation “to pursue pressing business and personal commitments” was “not an easy decision,” Foley said he remains a shareholder and has enjoyed “playing a part in the company’s recovery and success.”

JOHN BARR was named chief executive by PAPA MURPHY’S INTERNATIONAL, parent of the 850-unit Papa Murphy’s Take ’N’Bake pizza chain. He will succeed company cofounder TERRY COLLINS, who remains chairman and a shareholder. The largely franchised Papa Murphy’s chain, which generated 2004 systemwide sales of $386 million, said president and chief operating officer MARK LARAMIE will continue in that post, and JEFFREY HILL was hired as chief strategic officer.

CHARLES HENNING, hospitality veteran, has been named managing director of the CULINARY INSTITUTE OF AMERICA’s Greystone campus in the Napa Valley. Henning takes over the managing director duties from MARK ERICKSON, who remains vice president of continuing education for the CIA at the Hyde Park, N.Y. campus. Recently, Henning was with the Hotel DuPont in Wilmington, Del. He previously held executive positions with the Amway Grand Plaza in Grand Rapids, Mich.; the Swisshotel in Boston and Tianjin, China; the Boca Raton Resort Club in Boca Raton, Fla.; and the Walt Disney Co. in Paris, France, and Orlando, Fla.

TOM COSSUTO was named by HUDDLE HOUSE INC. to the vacant position of chief financial officer. Cossuto was senior vice president of finance for the Americas division of InterContinental Hotels Group and he also spent 14 years with PepsiCo Inc.

CHRIS CARROLL had resigned as senior vice president and director of marketing of the SUBWAY FRANCHISEE ADVERTISING FUND TRUST, which creates advertising and marketing programs for the 22,800-unit SUBWAY chain. He will remain in his position until Sept. 30 while the company seeks a replacement.

MIKE DOBROTA has been namedto the position of senior vice president of development by JOHNNY ROCKETS, the 175-unit diner chain. In his new role, Dobrota will work to expand the Johnny Rockets brand throughout the country. He previously held developmental posts at several companies, including Boston Market and PepsiCo.

TODD TOWNSEND was named chief marketing officer for SONIC CORP., the 3,000-unit drive-in chain. Townsend, a marketing and sales veteran of Yahoo and Sprint, previously spent nine years with the Chicago-based advertising agency Leo Burnett Co. PATTYE MOORE, former Sonic president, has been advising the company on marketing matters as a consultant since her departure last October.

PAUL MELANCON has joined San Diego-based JACK IN THE BOX INC. as vice president and controller. He has nearly three decades of experience in financial and accounting management and previously held the same position at Guess? Inc.

RIC SMITH has been renamed to vice president of real estate at POTBELLY SANDWICH WORKS, an 83-unit sandwich shop chain. Smith had joined the company in 2004, however, he left early this year to become senior vice president of store development for the fast casual Cereality concept. He will be responsible for opening Potbelly units in Texas.

DOUGLAS R .MUIR was appointed chief accounting officer by KRISPY KREME DOUGHNUTS INC., which operates or franchises 379 doughnut stores. He replaces MICHAEL C. PHALEN, who had acted as the company’s principal accounting officer and who remains chief financial officer. According to a Krispy Kreme filing with securities regulators, Muir will be paid an annual base salary of $300,000 and will be eligible for incentive plans. He has been a consultant to Krispy Kreme since last December and was paid about $205,000 in compensation, the company said.

TOM RAGAN was named by BANDANA’S BAR-B-Q, which operates or franchises 17 units, to the newly created position of vice president of franchising. Previously, Ragan was vice president of franchise development at Papa John’s Pizza and vice president of franchising at Krystal Co. Inc.

EDIE GARRITANO-AMES was named by MORTON’S RESTAURANT GROUP INC. to president of its 680-unit MORTON’S, THE STEAKHOUSE division. Garritano-Ames was previously regional vice president of operations for California Pizza Kitchen. He replaces JOHN T. BETTIN, who recently joined Potbelly Sandwich Works as senior vice president and chief operations officer.

LEAH EVANS was promoted by YUM! RESTAURANTS INTERNATIONAL from chief food innovation officer for PIZZA HUT INC. to the same position for the parent company’s international arm, which operates or franchises more than 11,000 restaurants worldwide. Dallas-based Pizza Hut’s No. 2 menu R&D official, SHIRISH MEHTA, was promoted to fill Evans’ position as CFIO for the nearly 6,000-unit chain.

DON BREEN was named chief financial officer by JAMBA JUICE, the 500-unit smoothie chain. He replaces JOE O’NEILL, who stepped down to spend time with his family. Breen most recently was senior vice president and CFO of the Wendy’s International-owned Baja Fresh fast-casual Mexican food chain.

BRAD MILLER was hired for the newly created position of director of new business developmentby Scottsdale-based KOKOPELLI FRANCHISE CO. LLC. The company said it “needed to fill this position immediately to meet the needs of their franchisees,” as it plans to open several new units in the coming year. Formerly, Miller was president and chief executive of both Franchise Capital Corp. and the five-unit Kokopelli Franchise Co.

MCDONALD ’S CORP. recently made some executive changes overseas. GUY RUSSO was promoted to international relationship partner for greater China, succeeding PETER TAN, who recently resigned. Russo is responsible for managing McDonald’s 1,200 restaurants in China, Taiwan and Hong Kong. He is a 30-year veteran of the company and previously chief executive and managing partner for McDonald’s Australia. PETER BUSH was promoted to chief executive of the chain’s Australia, New Zealand and Pacific Islands division and was formerly second-in-command to Russo. JEFFREY SCHWARTZ was named to chief executive of McDonald’s mainland China division, which has more than 620 restaurants. Before his promotion, Schwartz was a senior vice president of McDonald’s U.S. business. The company also said that GARY ROSEN, McDonald’s senior director of global marketing, was named vice president and chief marketing officer for McDonald’s China, succeeding SHANTEL WONG, who is moving into operations. In a separate announcement, McDonald’s also named BANE KNEZEVIC chief executive of the chain’s struggling business in Germany, which has more than 1,250 units. He previously held European senior management posts and replaces ADRIAAN HENDRIKX, who is currently pursuing other opportunities within the McDonald’s system.

Dick Wray & Consultants, Inc. Announces the Opening of Two New Offices

As we continue to grow, Dick Wray & Consultants, Inc. is pleased to announce the addition of two new offices. PETER A. SMITH, who will represent the hotel division of the company, is located in Eugene, Oregon and CHRIS MARSHALL joins us in Atlanta, Georgia. In addition, we are planning to open several more locations in Boston, Massachusetts and Columbus, Ohio.

Smith's broad background in the hotel industry from 1970 to 1997 includes numerous executive level positions. At the Hyatt, Smith served in various capacities including Director of Sales and Marketing, General Manager, Vice President of Operations, and Vice President of Sales and Marketing. He also worked for Princess Hotels International, Boca Raton Hotel & Club, Holiday Inns Hotels, and Biltmore Los Angeles and Sterling Hotels. He has a BA from the University of Maryland and an MBA in Hotel Business.

Marshall brings with him an extensive background in various fields having held positions as President/CEO MRI - Human Resource Consulting, Executive Director/CEO - Medical Non-Profit, Manager, Human Resources, Labor Relations, Management Development - Mining & Manufacturing, and Operations Manager – Retail. Marshall received a B.A. Liberal Arts – Labor – Management Relations from Pennsylvania State University, University Park, PA. His affiliations include MRI - President/CEO – Marshall Resources, Inc. Human Resource Consulting, http://www.marshallresourcesinc.com/; SHRM – Society for Human Resource Management; IAC – Founding member, International Association of Coaches; ASTD – American Society of Training & Development; and FCD – First Community Development.

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Three agreements were signed by Atlanta-based CHURCH’S CHICKEN calling for franchisees to open eight new units in Arizona, California and Texas. A gas station developer, FRANK BURGESS, plans to open three locations in Banning, Calif.; GARY WEATHERSPOON of SPOON INDUSTRIES INC., also a gas station operator, agreed to launch three units in Fort Worth, Texas; and a former Church’s manager and retail store owner, STEVE SCHMIDT of SALUD ENTERPRISES, is expected to open two restaurants, in Mesa and Phoenix. The company said that the pacts are the first of the chain’s monthly franchise signings that are to be conducted at Church’s headquarters in Atlanta.

JENNIFER TREMBLAY of MADO Management, which operated CAMINO LATINO, and ANTOIN REZKO, who operated three PANDA EXPRESS restaurants at O’Hare International Airport were decertified as so-called minority foodservice contractors. They are located inside the airport under the company name of CRUCIAL INC. According to the Chicago Tribune, a representative for the city of Chicago said that both companies might have to shut down the restaurants. Chicago Mayor RICHARD DALEY said in televised interviews that the city recently tightened its minority-contracting standards.

A lawsuit was filed in U.S. District Court for the Southern District of Florida by HOSPITALITY VENTURES GROUP INC., parent of a three-unit BONEFISH CREEK chain based in Palm Beach, Fla., against BONEFISH GRILL INC., a 76-unit subsidiary of Tampa, Fla.-based OUTBACK STEAKHOUSE. The suit claims the casual-dining chain infringed upon HVG’s common-law trademark to promote restaurant services of its Bonefish brand in southeastern Florida. The plaintiff said that in October 2003, it had obtained federal trademark registration of the Bonefish name accompanied by a fish skeleton image and claimed it had common-law rights to the signage as of June 2001. HVG is seeking to stop Bonefish Grill from using that name for restaurants located in southeastern Florida and to restrict Bonefish Grill’s expansion rights there. HVG’s attorney, WILL TRUEBA, of the law firm Kluger, Peretz, Kaplan & Berlin said, “We recognize that our client’s success in this lawsuit will likely limit Outback’s plan to open more Bonefish Grill restaurants, nevertheless, our client owns significant goodwill and trademark rights in its Bonefish trademarks and wants to protect that goodwill from infringement by Outback.”

A franchise agreement was signed by ROY ROGERS FRANCHISE CO. LLC with PJB ENTERPRISES to retain ownership of a Roy Rogers restaurant in Solomons Island, Md. Gould Restaurants Inc. previously owned the unit. President of PJB Enterprises, PATIENCE BARTON, is a former Roy Rogers employee at the chain’s La Plata, Md., location, which was then managed by Gould Restaurants.

The ninth location of GRANITE CITY FOOD & BREWERY LTD., the Minneapolis-based chain of brewpub-restaurants, opened last month in Wichita, Kan. Granite City’s president and chief executive, STEVE WAGENHEIM, said the Wichita opening marked “the beginning of a very aggressive expansion schedule.” By year-end, the company expects to add another unit in the Minneapolis/St. Paul market and two locations in the suburbs of Kansas City, Mo.

The Daily Deal financial news organization reported that EL POLLO LOCO INC. is for sale by owner AMERICAN SECURITIES CAPITAL PARTNERS LLC, after a sharp drop in net income for the most recent fiscal year and quarter. Possible buyers cited by The Daily Deal were equity or investment companies with existing foodservice holdings such as Apax Partners, Bruckmann Rosser, Sherrill & Co. LLC, Centre Partners Management LLC, Charlesbank Capital Partners LLC, Grotech Capital Group and Palladium Equity Partners LLC. In response to the report, JULIE WEEKS, spokeswoman for the 320-plus-unit grilled-chicken chain, said Irvine-based El Pollo Loco “does not comment on rumors or market speculation.”

A former MCDONALD’S CORP. restaurant manager, RUSSELL RICH, of Akron, Ohio, who sued the chain for allegedly pressuring him to quit his job in 1997 after the company learned he had AIDS was awarded $490,000 in damages by a jury as reported by the Associated Press. The verdict for the plaintiff came in the second case he had brought against Oak Brook, Ill.-based McDonald’s, which successfully appealed a $5 million verdict Rich won in a 2001 trial. Lead attorney for the 21-year McDonald’s veteran, PAIGE MARTIN, reportedly said she would appeal the amount of the latest award on grounds of alleged errors by Judge JOHN T. PATTON. BILL WHITMAN, a McDonald’s spokesman, was quoted as calling Rich’s allegations “baseless and without merit” and saying the company also might appeal.

CKE RESTAURANTS INC ., announced that a new franchisee, BRIGHTSTAR LLC, plans to open 50 CARL’S JR. burger outlets in Russia over the next eight years with the first Carl’s Jr. scheduled for early 2006. PAUL PASCO, director of Bright Star, said “Our goal is to take a leadership position in the Russian fast-food market.” According to one estimate, fast-food restaurants in Moscow generate sales of $700 million to $800 million a year alone and are expanding their aggregate volumes at a 20-percent annual rate. Currently, MCDONALD'S has approximately 120 Russian outlets, while KFC has 15 and its new joint-venture partner, the Rostik’s chicken chain, has about 75. .

MAYDEAL CHAMBERS JOHNSON claims she found a human fingertip in her takeout salad a year ago and is now suing APPLEBEE’S INTERNATIONAL INC. Attorney, MICHAEL DARNELL, said his client became violently ill and has not been able to eat at restaurants since the incident and is receiving psychological counseling for anxiety. Reportedly Darnell has the fingertip in his office freezer. Overland Park, Kan.-based Applebee’s, which operates or franchises more than 1,700 restaurants, publicly apologized to Johnson for the incident, and said that “food safety remains our top priority.” Applebee’s said it immediately launched an investigation and sent several officials to the restaurant to investigate after learning of Johnson’s allegations and issued a statement saying that “a former employee at this [Jefferson Parish] restaurant accidentally cut the very tip of his thumb last year.”

In a published report, DOMINO’S PIZZA, unveiled its newly remodeled and expanded worldwide headquarters in Ann Arbor, Mich. after spending an estimated $20 million on renovations. The redesigned headquarters, called Domino’s World Resource Center, has been in the works since 2002, and reportedly encompasses 200,000 square feet after some 35,000 square feet were added to its campus. The pizza chain, the nation’s second-largest, modernized its research and development labs, created a pizza training theater, and added 27 conference and meeting rooms.

HARDEE ’S largest nationalfranchisee, BODDIE-NOELL ENTERPRISES INC., said it would not air the racy PARIS HILTON commercial for the chain’s Spicy BBQ Thickburger. The ad is considered to be “in bad taste or offensive by many customers and employees according to chief executive BILL BODDIE. A different TV spot for the burger will air instead. Boddie-Noell operates 315 Hardee’s in four states. JEFF MOCHAL, Hardee’s public-relations manager, said the company gives franchisees the right to make some local marketing decisions, adding that Hardee’s recommended running the Hilton ad only after 9 p.m. He went on to say the Hilton ad “resonates with our target,” which is young males.

An agreement was signed between the franchisor of the more-than-63-unit Lenny’s Sub Shops chain, LENNY’S FRANCHISOR LLC, and 10-year banking industry veteran KAMLESH PATEL to open an undetermined number of restaurants in the San Antonio market.

Newport, Ore.-based MO’S RESTAURANTS, a six-unit family seafood chain filed a federal suit against Atlanta-based MOE’S SOUTHWEST GRILL alleging violations of its trademarked greeting, “Hi, welcome to Mo’s.” Moe's Southwest Grill declined to comment on the suit, which asks 230-unit Moe’s, operated and franchised by fast-casual parent RAVING BRANDS, to pay damages or stop using a similar welcome slogan.

Claiming that the 151-unit chain has defrauded customers by selling a “lobster burrito” that contains no lobster, an attorney has filed a class-action lawsuit in California Superior Court Tuesday against RUBIO’S FRESH MEXICAN GRILL, based in Carlsbad, Calif. The burrito is made with langostino, a small crayfishlike creature. RAYEGALLO, theattorney filing the suit, alleges Rubio’s changed the dish’s name to “langostino lobster burrito” after learning about his intended lawsuit. However, Gallo asserts the burrito still is mislabeled because “there is no such thing as a langostino lobster.” Officials at Rubio’s, while not confirming that a lawsuit was filed, said in a statement that they received permission from a U.S. Food and Drug Administration consumer safety officer earlier this year to use the term “langostino lobster” for the two species used in the dish. Rubio’s called for the law firm to withdraw the complaint and issue a retraction.

In an article in the Wall Street Journal, it was noted that a list in a British magazine of the world's top 50 restaurants included only one Asia-based restaurant. One writer, John Krich, speculated that the culture of Asian dining is partly at fault. He writes that Asian chefs rarely reach individual fame, instead working under the banner of a hotel chain, and that most food writers judge Asian food based on "predictable neighborhood storefronts."

Both SUBWAY and QUIZNOS are in competition, not only against each other but against the burger chains. Despite a recent Quiznos opening near a Subway, monthly sales charts were unaffected at Subway. Fred DeLuca, Subway's founder and president, said that despite the presence of 18,000 Subway restaurants nationwide, the sandwich market remains underserved. New customers are brought into a market by Quiznos, which in turn benefits Subway. DeLuca even credits part of his company's 11 percent average annual growth over the past three years to Quiznos' emergence. He said, "If they never existed, our overall growth probably would be slower."

SHAKEY's USA's new chief executive, ex-Pizza Hut president ARTHUR GUNTHER, hoping to trade on lingering affection for America's first pizza parlor chain, is planning to resuscitate the battered, 63-unit brand with a new look, an upgraded menu and a commitment to growth. Gunther said that the first step toward renewal of the Shakey's brand was to take a hard look at the restaurant's core menu item: pizza. Gunther is considering menu changes that include adding rotisserie chicken and entrée salads to the lineup that currently offers fried chicken, the chain's signature Mojo potatoes and other fried items. The new menu might require "adding a dollar or two" said Gunther as their average ticket is $7.25. He intends to build lunch business by cutting the 30-minute time required to cook a pizza in half and he is also considering ending the chain's all-you-can-eat-buffet. "I am not in love with the buffet," Gunther said. "If we can't make it better, we'll get rid of it." In addition, Shakey's USA also developed a new prototype building package, with updates to both the interior and exterior. According to Gunther, with a 6,000-square-foot footprint and seating for approximately 220, the prototype would cost an estimated $850,000 to open.

In their continuing quest to offer customers more unique items, STARBUCKS has begun installing "media bars" in cafes where customers can download songs and burn customized CD's. Currently, 45 Starbucks locations in Seattle and Austin, Texas have the units in place with more planned by year-end. KEN LOMBARD, Starbucks' entertainment president says, "Music is a big component of our overall strategy." With the struggle of illegal downloads an ongoing challenge, the music industry is pleased with Starbucks' new sales outlets. Analysts, however, feel that the music foray could come with some risks and warn that the media bars may be a distraction. Lombard, however, insists, "The customer won't go into the store and feel like they've walked into a music store".

Fast food burger wars are heating up. With the recent "finger in the food" scandal at WENDY's, the company not only faces more than $15 million in lost business but now has to deal with increased competition from other fast food chains. Some of the competition has begun to copy many of Wendy's most successful products. BURGER KING has upgraded their chicken sandwich and MCDONALD's is following suit. KFC has added a $.99 chicken sandwich. After learning earlier in the year that McDonald's was launching an apple and walnut salad in May, Wendy's had to launch its latest innovation, an entrée-sized fruit salad earlier than planned this year. Wendy's, though, will introduce some new value menu items to boost sales and is beginning a new ad campaign that combines some youth-oriented national commercials with target radio, print and Internet ads.

An increasingly popular trend in the fast food industry today is opening multi-branded stores such as TACO BELL and LONG JOHN SILVER . There are over 2700 multi-branded outlets operated by YUM BRANDS ! Yum says that such combinations are highly preferred by customers, generate higher sales, and provides the company an opportunity to build lesser-know brands. Multi-branded stores of Yum's have two illuminated logos, combined kitchens, a single line of cashiers and a staff trained to prepare both sets of menu items. CKE RESTAURANT, owner of CARL's JR . and HARDEES , is also an advocate of the concept. There are 230 Carl's Jrs. restaurants coupled with GREEN BURRITO , a fast food Mexican chain. WENDY's has joined some of its stores with the popular Canadian coffee, doughnut and lunch chain, TIM HORTON's . Analyst JOE BUCKLEY of Bear Stearns says, "It’s a way to play on the credibility of the flagship brands." Analysts believe two-in-one restaurants are an effective and efficient way for fast food companies to build newer or lesser-known brands.

QUIZNOS MASTER LLC, the Denver-based sandwich chain, sent a report to its several thousand franchiseeswith regards to recent court rulings in its favor. The report offered explanations to questions about several lawsuits against the company by franchise owners and recent news stories. It covered such topics as sales royalties, advertising fees and market penetration. Earlier last month, Denver District Court judges threw out two suits, one by Colorado franchisees and another by Arizona franchisees, which accused Quiznos of things such as allowing encroachment, overcharging franchisees for food and supplies, and misusing advertising funds. Franchisees in New Jersey filed a lawsuit, that is still pending, with similar complaints against the company. JUSTIN KLEIN, the attorney for the 17 plaintiff franchisees there, said he remains confident that the motion to dismiss filed by Quiznos, will be denied.

The first franchised branch of the Guatemalan-based POLLO CAMPERO quick-service chicken chain as well as its first in the Chicago market was opened by LEVY FAMILY PARTNERS, the investment division of Chicago-based LEVY RESTAURANTS. Levy bought the rights to open 50 units in Illinois, Wisconsin and Florida from the 33-year-old chain, which operates or franchises some 200 restaurants in Central America and Mexico. J

An investment firm based in Tokyo and Hong Kong, LONGREACH GROUP, said it has become the second-largest shareholder in MCDONALD’S HOLDINGS CO. (JAPAN) after acquiring a 24.98-percent stake from the family of DEN FUJITA, the late founder and one-time leader of the Japanese McDonald’s chain. McDonald’s Corp. of Oak Brook, Ill., owns a 50-percent stake in the publicly traded Japanese concern. The investment firm created LAKEVIEW LTD. founded in 1971 to invest in McDonald’s Japan and is the chain’s largest national group outside the United States. It was as a joint venture between Fujita and McDonald’s Corp.

Nine units in Ohio were sold by PAPA JOHN’S INTERNATIONAL to regional franchisee CENTRAL OHIO RESTAURANTS INC., an 18-unit Papa John’s Pizza operator. THREE S DEVELOPMENT CO. of Louisville, Ky. previously operated the nine locations. A reason was not given by Papa John’s for the transaction.

A 1.2-percent decline in second-quarter net income to $70.8 million on a 4.6-percent rise in revenues to $951.0 millionwas reported by WENDY’S INTERNATIONAL. Three months ended July 3 results were impaired by same-store sales declines of 4.6 percent at corporate U.S. Wendy’s burger restaurants and 3.9 percent at the chain’s domestic franchised branches. JACK SCHUESSLER, CEO, cited higher costs and sales “challenges” faced by the Wendy’s chain in the first half, an apparent reference to the effect of negative publicity from an incident that led to a suspect’s arrest on extortion charges for alleged food tampering.

A 29-percent jump in second-quarter earnings was posted by STARBUCKS CORP. of $125.6 million on a 22-percent increase in revenues to $1.6 billion. For the period ended July 3, the net profit equaled 31 cents per diluted share, compared with 24 cents a share a year earlier.

A slight dip in second quarter earnings was reported by APPLEBEE’S INTERNATIONAL INC. as a 9-percent increase in revenues was offset by a 13-percent jump in cost of sales. For the quarter ended June 26, Applebee’s recorded a profit of $27.5 million versus $28.1 million a year earlier.

For the first quarter ended March 27, BUCA INC, owner and operator of 107 Buca di Beppo and Vinny T’s of Boston restaurants, reported a net loss of $1.6 million, after charges of $400,000 for asset impairment and $100,000 for a lease termination, versus a restated net loss of $1.4 million for the same period last year.

A 13-percent drop in second-quarter earnings was reported by RUBIO’S RESTAURANTS INC., operator or franchisor of more than 150 Rubio’s Fresh Mexican Grill fast-casual units to $909,000 on higher ad spending and general and administrative costs that offset reduced costs of sales.

The board of directors of RARE HOSPITALITY INTERNATIONAL INC. authorized the repurchase of $30 million worth of the company’s common stock through May 1, 2007, in addition to a $29 million authorization through that date approved earlier this year.

For its fiscal 2006 first quarter ended July 17, BENIHANA INC., operator of 72 Japanese and sushi restaurants, reported a systemwide, same-store sales increase of 9 percent. For the period, total restaurant sales jumped 13.5 percent to $73.7 million from year-earlier levels.

A 0.4-percent drop in systemwide same-store sales was reported by OUTBACK STEAKHOUSE INC., at its Outback Steakhouse chain for the five weeks ended June 25. Same-store sales rose 9 percent at Outback’s Carrabba’s Italian Grill, increased 14.2 percent at Fleming’s Prime Steakhouse & Wine Bar, climbed 6.3 percent at Roy’s and jumped 3.7 percent at Bonefish Grill. Outback also posted lower second quarter earnings after a $7.6 million asset impairment charge, on a 14-percent increase in revenues. For the quarter ended June 30, Outback’s net income was $40.4 million, or 53 cents per diluted share, compared with $43.3 million, or 56 cents a share, for the previous second quarter.

For the fiscal year ended April 3, TULLY’S COFFEE CORP., posted a wider annual loss than a year earlier and said same-store sales at company-owned coffee bars were down 2 percent, but gains in the company’s wholesale, franchising and licensing divisions pushed total revenues up 6.3 percent, compared with the prior year. Net loss at Tully’s was $4.63 million for the year, compared with $2.6 million a year earlier. Tully’s management said one-time charges of $402,000 in severance compensation for former president Tony Gioia and $1.63 million for the previously announced settlement of a lawsuit by California employees who alleged they illegally were denied overtime pay contributed to the loss.

At the end of their second quarter ended June 30, MCDONALD’S CORP. reported a 10-percent drop in net earnings on a onetime tax expense of 9 cents per share resulting from the company’s decision to repatriate about $3.2 billion in overseas earnings. Second-quarter revenues for McDonald’s rose 8 percent, or 5 percent in constant currencies, to $5.01 billion.

A 4-percent increase in second-quarter profits on sales that rose nearly 15 percentwas reported by RARE HOSPITALITY INTERNATIONAL INC., operator or franchisor of 282 steakhouses under three brands. For the quarter ended June 26, the company earned $13.8 million, or 39 cents per diluted share versus $13.3 million, or 37 cents a share, in the second quarter a year earlier.

Comparable-store sales jumped 6.4 percent for the second quarter ended July 4 at COSÍ INC., operator of 92 fast-casual sandwich and salad restaurants. Total sales increased 5.5 percent to $30.6 million, versus $29 million for the year-earlier quarter.

A 32-percent surge in its second-quarter profit was reported by THE CHEESECAKE FACTORY INC. on revenues that rose 23 percent from year-earlier levels and an “improved” commodity cost environment versus the year before.

For the second quarter ended June 30, IHOP CORP., which franchises a system of 1,207 restaurants in 48 states and Canada, reported a 0.9-percent increase in systemwide same-store sales. Systemwide same-store sales rose 0.8 percent for the six months ended June 30. IHOP said that the results reflected the “modest performance” of a limited-time promotion, the Sourdough Cheese Grillers, which sought to expand consumer awareness about the chain’s nonbreakfast offerings.

Sales for the period ended June 26 rose 22 percent at BUFFALO WILD WINGS INC., operator or franchisor of 335 Buffalo Wild Wings Grill & Bar restaurants, and second-quarter earnings-per-share expectations rose by 5 cents.

Ending their financial involvement with former parent company DIAGEO PLC of London, BURGER KING CORP. refinanced existing debt with a new $1.15 billion bank loan. Because the No. 2 burger chain was in a sales slump at the time, a private investment team led by TEXAS PACIFIC GROUP, had agreed to guarantee $850 million of debt, although Diageo sold BK for $2.26 billion in December 2002. Having posted positive same-store sales for more than one year, Burger King, said the refinancing includes $1 billion in debt and a $150 million revolving credit.

After the company reported increased second-quarter profits, shares of YUM! BRANDS INC. closed down $1.86, or 3.6 percent, at $49.85 but tempered its earnings forecast for the third and fourth quarters. For the second quarter ended June 11, profits increased 5 percent to $187 million, or 62 cents per diluted share, versus $178 million, or 58 cents a share, for the year-earlier second quarter.

A slight dip in second-quarter profits was reported by LONE STAR STEAKHOUSE & SALOON INC., operator or franchisor of 308 steakhouses under four brands, on revenues that fell 1.3 percent. For the quarter ended June 14, net income was $5.2 million, versus $5.3 million a year earlier.

Outlook for second-quarter earnings have been raised by CALIFORNIA PIZZA KITCHEN INC. to 32 cents a share, from a former range of 26 cents to 28 cents, saying sales for the period ended July 3 were stronger than expected. CPK credited the profit improvement to the launch of a new POS system that allows the use of electronic gift cards.

For the five weeks ended July 3, DARDEN RESTAURANTS INC. reported same-store sales increases of 10 percent to 11 percent at its Olive Garden chain and 9 percent at its Red Lobster brand.

Reflecting a 4.9-percent increase in their check average and a 1.7-percent dip in guest counts, DENNY’S CORP. reported a 3.2-percent rise in same-store sales for the five weeks ended June 29 for company owned restaurants.

For the second quarter ended July 3, P.F. CHANG’S CHINA BISTRO INC. posted a 17-percent jump in revenues to $198.1 million, and a 1.9-percent increase in same-store sales for its namesake restaurants and a 6.3-percent same-store rise for its Pei Wei Asian Diner units.

A 16-percent drop in fourth-quarter earnings on a 7-percent bump in total operating revenue was reported by RUBY TUESDAY INC., operator or franchisor of 805 casual-dining restaurants. Quarterly same-store sales declined 8.9 percent at corporate restaurants according to Maryville-based Ruby Tuesday, and much as 5 percent of that was a result of overlapping strong coupon redemptions in the prior year.

For the four weeks ended June 29, RYAN’S RESTAURANT GROUP INC., operator of 346 restaurants under the Ryan’s Grill Buffet & Bakery and Fire Mountain brands, reported a 4.3-percent dip in same-store sales at units open at least 18 months. Same-store sales fell 4 percent for the company’s second quarter, which also ended June 29. Ryan's posted lower earnings for the fifth consecutive quarter reporting net income of $6.3 million, or 15 cents per diluted share, for the second quarter ended June 29, compared with $14.2 million, or 33 cents a share, earned during the year-earlier period.

The details of its initial public offering of stock, which could reach $194.3 million in total value,were announced by RUTH’S CHRIS STEAK HOUSE INC., operator or franchisor of 88 fine-dining steakhouses. After announcing its intentions to go public in April, the company said it would offer up to 11.4 million shares at a per share price between $15 and $17, according to a filing with the U.S. SECURITIES & EXCHANGE COMMISSION. Ruth’s Chris said the net proceeds of about $136.9 million would be used to redeem outstanding stock and repay corporate debt.

For the four weeks ended May 15, AFC ENTERPRISES INC., franchisor and operator of the Popeyes Chicken & Biscuits quick-service chain, reported a domestic systemwide same-store sales increase of 3.1 percent and for the four weeks ended June 12, they reported an increase of 2.4 percent.

Operator of 200 steak and ribs restaurants, TEXAS ROADHOUSE INC., priced its secondary offering of 3.2 million shares at $34.75 a share. The company held an initial public offering of its stock at a price of $17.50 a share in October 2004.

For the four weeks ended July 18, CKE RESTAURANTS INC., operator or franchisor of 3,165 restaurants, including 1,020 Carl’s Jr. units and 2,029 Hardee’s, reported same-store-sales increases of 1.3 percent for Carl’s Jr. and 0.4 percent for Hardee’s. For the same period, revenues from CKE-operated Carl’s Jr. and Hardee’s restaurants totaled $44.3 million and $47.6 million, respectively.

A 49-percent surge in second-quarter earnings on company revenues that rose 22 percent from a year earlier has been reported by BUFFALO WILD WINGS INC., operator or franchisor of about 334 Buffalo Wild Wings Grill & Bar restaurants. The Minneapolis-based company earned $1.9 million, or 22 cents per diluted share for the quarter ended June 26, versus a profit of $1.3 million, or 15 cents, a year before.

For the five weeks ended June 26, PAPA JOHN’S INTERNATIONAL INC., whose 2,875-unit chain includes 2,304 franchised Papa John’s Pizza outlets worldwide, reported a 6-percent increase in domestic systemwide same-store sales.

For the four weeks ended June 24,BOB EVANS FARMS INC., owner and operator of 591 Bob Evans family restaurants and 93 Mimi’s Café casual-dining outlets, reported a same-store sales decline of 3.1 percent for the Bob Evans chain and a 3-percent same-store sales increase for Mimi’s Café.

By: Bettie Biehn

“Quick Hits”

Well, late summer is definitely here. Temperatures in the 90’s, humidity over the moon, and everything moving more slowly…..including my brain. So here are some “quick hits” from an expert to gear us up for fall’s boom of job openings.

Kate Lorenz, Careerbuilder.com’s Article and Advice Editor, provides excellent hints in her online article “Seven Signs It’s Time to Toss Your Resume”:

1. Without a career summary/introductory statement, hiring managers have to conduct search missions to figure out if they should hire you. Put it up front in clear, concise language and don’t make them work too hard.
2. Don’t overlook key words and phrases. Check job postings and position descriptions, and refer to books with keywords for your industry.
3. Listing jobs and functions is good, but tell readers what problems you addressed, actions you took, skills you used and results you achieved.
4. Make each word count. Take out unneeded personal pronouns/articles like “the”, “a”, “an”, and give perception of objectivity by deleting “I”, “me,” and “my”.
5. Delete irrelevant information, including personal data, unless it’s relevant to the position functions. When in doubt, cut it out. Ask an objective friend to critique.
6. Use the format that best suits your work experience and number of positions.
7. Check for spelling and grammar; then check it again. Don’t trust your computer’s auto-check to catch everything. Read it several times. Then have a good proofreader check it as well.

You only have one chance to get your foot in the door. Make it count.

Thanks to Kate Lorenz and the writing staff at Careerbuilder.com. While many of these quick hits echo earlier columns, these seven were paraphrased from the article noted.

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 articles address current HR issues. Contact Bettie at bbiehn@careerchangecentral.com, and visit her website www.careerchangecentral.com.

Dick Wray & Consultants is pleased to report that the demand for our service is strong.

The following list is a sampling of our current engagements.

1. VP Franchise Services, Mid Atlantic
2. VP Operations, West Coast
3. VP Development, New England
4. Chief Marketing Officer, Southeast
5. Director of Purchasing, West
6. VP Operations & Development, QSR, West
7. VP Operations, New England
8. Director of Real Estate, West Coast
9. Director of VIPS, Mexico City
10. Regional HR Manager, Northeast

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.

FSA PUBLIC RELATIONS of Louisville, Kywas named agency of record by SHAKE’S FROZEN CUSTARD. According to COREY OSBORNE, Shake’s president and chief executive, the ice-cream chain’s marketing strategy “is deep rooted in local store marketing.”

According to dinnerhouse chain operator, BUCA INC., the company has sued two of its former executives, alleging that they received kickbacks from a vendor, used company money for family vacations and entered into unfavorable contracts with firms in which the two had undisclosed financial interests. The company alleges that Buca’s former chief financial officer, GREG GADEL, who resigned in February, and Buca’s former chief information officer, JOHN MOTSCHENBACHER, who was terminated in March, contributed to “material weaknesses” in Buca’s internal controls. The company said that Buca still faces a formal U.S. Securities & Exchange Commission investigation to determine whether it violated federal securities laws. The SEC inquiry was tied to last year’s resignation of former chairman and chief executive Joseph P. Micatrotto, over his 2002 use of Buca funds to purchase a farmhouse in Italy whose title he transferred to the company upon his severance, when he also reimbursed $900,000 to Buca.

A Krispy Kreme franchisee with 25 stores in the Chicago and St. Louis areas, SWEET TRADITIONS LLC., is suing franchisor KRISPY KREME DOUGHNUTS INC. over issues related to recent sales slumps. Sweet Traditions filed for an injunction and restraining order July 19 seeking to halt Winston-Salem, N.C.-based Krispy Kreme from withholding delivery of its doughnut mix to the franchises, and to allow Sweet Traditions to suspend its contractual obligation to pay royalties to the franchisor. Franchisees are required to buy supplies from the company.

A Boston Globe report said that Burger King Corp.’s co-owner and two other private equity firms are in talks to buy DUNKIN’BRANDS INC., franchisor of the Dunkin’ Donuts, Baskin-Robbins and Togo’s brands. BAIN CAPITAL, Burger King co-owner, and THOMAS H. LEE PARTNERS, and the Washington, D.C.-based CARLYLE GROUP reportedly are preparing separately to present bids for Canton, Mass.-based Dunkin’Brands to its new parent company, PERNOD RICARD SA. The French company said it had taken ownership of Dunkin’Brands’ former parent, Britain’s ALLIED DOMECQ PLC, another spirits giant.

In a letter to JACK SCHUESSLER, chairman and chief executive of WENDY’S INTERNATIONAL INC, which was also filed with the U.S. Securities and Exchange Commission, PERSHING SQUARE CAPITAL MANAGEMENT, an investment firm with a large ownership stake,urged the company to abandon a rumored bid to acquire DUNKIN’ BRANDS and to sell to franchisees all but 50 of the 1,332 corporate-owned Wendy’s in the 5,960-restaurant U.S. system. They also urged Wendy's again to spin off its highly profitable TIM HORTONS doughnut chain. Previously issuing public calls for Wendy’s to sell assets to increase shareholder value, Pershing, a New York hedge fund, disclosed to the SEC this year that the firm owns stock and holds options that, if exercised, would give it at least a 9.3-percent stake in the No. 3 burger chain’s parent. Wendy’s declined to comment on Pershing’s letter.

The U.S. Attorney’s Office said that former stock analyst, CLIVE MUNRO, was sentenced to 21 months in prison for attempting to extort $300,000 from CKE RESTAURANTS INC., parent of the Hardee’s and Carl’s Jr. chains., Munro pleaded guilty to one felony count of communicating interstate threats, through CKE’s St. Louis-based Hardee’s division in February. The publisher of the Javelin Research and Montecito Research reports had threatened to write negative assessments of CKE unless they paid him $25,000 per month for one year.

DAIRY QUEEN longtime franchise, GEOFF BAKER, debuted the chain’s first DQ TREATWORKS in Tarentum, Pa. A second TreatWorks, whose dual-brand format features the full line of Dairy Queen items and the ORANGE JULIUS brand, is expected to open soon in Tampico, Mexico.

According to FOOD CONCEPTS INTERNATIONAL HOLDINGS INC., the first East Coast ABUELO’S MEXICAN FOOD EMBASSY location opened in Myrtle Beach, S.C. as the chain’s 25th unit overall. Another five Abuelo’s are expected to open by year-end followed by 10 a year in 2006 and 2007 with deals pending for Ohio, Michigan, Kentucky, New York, Virginia and Wisconsin.

The 50 th location of ISLANDS FINE BURGERS & DRINKS, opened last month in West Covina, Calif. over the next year, the company expects to launch about seven additional stores, including a location at the Ala Moana center in Honolulu. The full-service chain also has plans to expand to Northern California and other markets throughout the West.

Having exited Chapter 11 bankruptcy reorganization, AMERICAN RESTAURANT GROUP INC., parent of the Stuart Anderson’s Black Angus/Cattle Co. dinnerhouse chains, said it is rebranding nearly all of its 87 restaurants to BLACK ANGUS STEAKHOUSE. Last fall, ARGI filed for Chapter 11 protection from creditors after reaching an agreement with major creditors about restructuring. Execution of the plan would reduce funded debt and interest from approximately $202 million to $23 million according to officials of the Los Altos company. Including closures in Idaho, Indiana and Minnesota, the restructuring involved conversion of ARGI’s senior secured notes to equity. ARGI chief executive, RALPH ROBERTS, said the restructuring “will allow us to invest in our brand, our restaurant facilities and our people”.

A two-in-one fast-casual restaurant and nutrition center concept, KNOWFAT! LIFESTYLE GRILLE, based in Boston, said new franchisee JEREMY LAPPIN of Beacon Hill, Mass., had agreed to open the brand’s fourth Boston-area location this summer. All items’ calories, milligrams of sodium and grams of fat, carbohydrate and protein are listed on the menus of the three branches in Massachusetts.

According to recently published reports, DUNKIN’ DONUTS expects franchisees to open 70 new stores over the next five years in the Jacksonville, Fla., market and three to five of the units are planned to open by year-end.

Denver-based QDOBA MEXICAN GRILL is planning to open its second airport location in the Cincinnati/Kentucky International Airport this fall. The chain, a subsidiary of JACK IN THE BOX INC. of San Diego, debuted its first airport location in May at the Seattle-Tacoma International Airport in the 240,000-square-foot Pacific Market Place atrium in the Central Terminal.

QDOBA MEXICAN GRILL has also signed Jack in the Box franchisee JOHN LIN of Q CENTRAL DEVELOPMENT LLC to a pact calling for him to open an undetermined number of Qdoba units starting in early 2006 in Irvine, Newport Beach and Long Beach, Calif. In addition, Jack in the Box franchisee TERRY JONES, president of O.C. Q RESTAURANTS INC., and JOSE RODRIGUEZ, director of operations of O.C. Q Restaurants, signed to open Qdoba units in Orange County, Calif. Their first unit will be launched in Lake Forest early next year.

The first unit of CLAIM JUMPER RESTAURANTS is currently under construction and is scheduled to open in the Midwest, in the Chicago area.

NICK-N-WILLY ’S WORLD FAMOUS TAKE-N-BAKE PIZZA, based in Boulder, Co., debuted the first of 50 outlets planned for the Houston area. The new restaurant is operated by franchisees CLAIRE and ARTHUR DAVILA.

A new quick-service concept by TCBY SYSTEMS of Salt Lake City, YOVANA’S, recently opened in Phoenix and features premium yogurt prepared in the store each day. In addition to their selection of yogurt parfaits, yogurt smoothies and frozen yogurt, Yovana’s also serves meals. TCBY’s vice president of marketing, DAVID HALL, said Yovana’s “feeds consumers’ growing hunger for yogurt.”

Published reports state that the former chef-restaurateur and reality TV star turned radio talk show host, ROCCO DISPIRITO, is said to be planning a new restaurant in Manhattan’s Flatiron District. DiSpirito has not commented on the new venture, but sources said the menu would be Italian. He is best known for his ill-fated Rocco’s startup that was the subject of an NBC series but who gained earlier acclaim for his Union Pacific fine-dining restaurant in New York.

Operator or franchisor of 56 upscale restaurants MCCORMICK & SCHMICK’S SEAFOOD RESTAURANTS INC., opened an M&S GRILL in Kansas City, Mo., marking the chain’s second restaurant there. A secondary concept for McCormick & Schmick , the new, more casual M&S Grill features aged steaks, poultry, entrée salads and fresh seafood.

STARBUCKS COFFEE CO . opened a freestanding coffeehouse in Augusta, Ga. that features a patio and drive-thru in a converted McDonald’s restaurant near a highway off ramp. In addition, the 1,752-square-foot outlet will have the same counter-service format and menu as a conventional branch of 9,500-unit Starbucks Coffee.

Chief executive BRYANT KEIL, indicated in published reports that the company, POTBELLY SANDWICH WORKS’, is preparing to file for an initial public stock offering. Keil was quoted by Crain’s Chicago Business as saying that an IPO could be made next year or the year after, however, he declined to state details. Keil was quoted as saying that Potbelly would report systemwide sales of about $100 million this year for a 43-percent annual increase. John Bettin, former president of Morton’s The Steakhouse was also hired by Potbelly as senior vice president and chief operations officer, and William Moreton, former chief executive of Baja Fresh Mexican Grill, as president and chief financial officer.

The newly remodeled DOWNTOWN AQUARIUM by LANDRY'S RESTAURANTS INC. has opened in Denver. A new seafood restaurant and bar, a ballroom and more than 1 million gallons of exhibit space is featured. The bankrupt Colorado Ocean’s Journey, a nonprofit aquarium, was purchased by Houston-based Landry’s in 2003 for $13.6 million to turn the 17-acre complex into an entertainment destination similar to Landry’s aquarium complex in the theater district in downtown Houston.

RESTAURANT COMPANIES INTERNATIONAL , or RCI, has been acquired by Scottsdale, Ariz.-based CREATIVE EATERIES CORP. for 30.8 million shares of the corporation’s restricted common stock. RCI is a franchise development company and managing member and majority owner of the Q’S HOUSE OF BARBECUE concept. RCI’s president, FRANK HOLDRAKER, was named president of Creative Eateries and he was also named to its board.

Franchisee RICK WINDRUM signed a development agreement with FUDDRUCKERS INC. with that calls for him to open three units in Omaha, Neb., and two locations in Des Moines, Iowa.

HOOSIER RIBS LLC signed a franchise agreement with FAMOUS DAVE’S OF AMERICA INC., for the opening of six Famous Dave’s Legendary Pit Bar-B-Que restaurants over the next six years in the Indiana cities of Anderson, Bloomington, Fort Wayne, Indianapolis, Kokomo, Lafayette/West Lafayette, Muncie and Terre Haute.

Sonoma Valley, Calif., winemakers have been working with sommeliers in the CHARLIE PALMER GROUP of restaurants, ANDREW BRADBURY of Aureole Las Vegas, SCOTT BRENNER of Aureole New York, and KEITH GOLDSTON, formerly of Charlie Palmer Steak DC and now a consultant for the group, to produce wines especially for chef Palmer’s cuisine and restaurants. The five wines, labeled “ISC” for International Sommelier Conspiracy, because of the collaboration of wine stewards and producers are available only at Palmer group restaurants, including Aureole, Astra, Metrazur, Kitchen 22 and Kitchen 82, all in New York; Astra in West Hollywood, Calif.; Charlie Palmer Steak, in Washington, D.C., and Las Vegas; and Dry Creek Kitchen in Healdsburg, Calif.

After claiming that the slogan, “U Pick 2”, was infringing on its intellectual property, PANERA BREAD CO. said DUNKIN’ BRANDS INC. has agreed to stop using the “U Pick 2” promotion at co-branded Dunkin’ Donuts and Togo’s sandwich outlets. Panera said it holds a federal trademark for the similar “You Pick Two” marketing tag line.

A franchise agreement was signed between TACO DEL MAR, the 135-unit fast-casual chain and JOHN BOYKEN and BERTAH EDINGTON which calls for them to open up to 10 units throughout the San Diego market by year-end.

As a result of the recent deadly explosions in London, international travel bookings are expected to soften slightly as the attacks strengthen tourists' terrorism fears. A decline in trans-Atlantic tourism could hurt what has been a bright spot for the struggling travel tourism industry, however, analysts feel that the impact should be minor and short-lived, reflecting travelers' increasing resilience to unsettling world events.

According to a recent study by a leading hospitality consultant, PKF Hospitality Research (PKF-HR), an affiliate of PKF Consulting, even though U.S. hotels have enjoyed a strong increase in room revenue during the current recovery period, growth in hotel food and beverage sales, while continuing to improve, lacked the same kind of sizzle. Fortunately, tight cost controls by management have enabled food and beverage profitability to keep pace with the profit growth of other operating departments.

A historic hotel that overlooks New York's Central Park, THE ESSEX HOUSE, is about to trade hands. A contract with the seller, Strategic Hotel Capital LLC, was made with Dubai Investment Group to acquire the property.

With the overall goal to increase the occupancy rates and prices, owners of the PICKWICK ARMS HOTEL on the East Side of Manhattan are renovating some rooms of their property. Instead of combining rooms to make the larger, they have decided to go with a new design that will use smaller rooms by putting in bunk beds and guests would utilize hall bathrooms. These smaller rooms, though, will be well equipped with the latest in technology including flat screen TVs, iPod docking stations and Wi-Fi controlled mini bars. PriceWaterhouse-Coopers' hospitality consultant, ROSS WOODS, says, "Some people just want a place to sleep". Most investors believe size is the most important issue, but consumer research finds that size is not the most important."

RAFFLES HOLDINGS LTD . has sold its entire hotel business to COLONY CAPITAL LLC for $859 Million. Raffles Holdings decided to sell their hotel business because it lacked scale, ranking 17 th or 18 th in the world in terms of market capitalization and number of rooms. In a news conference, JENNIE CHAU, chief executive, said, "To grow further, the hotel business would need to gain global scale, which entails significant investments and potential cash calls. That is not something we would like to do." According to Colony Corp., they will retain the Raffles and Swiss brands and have plans to expand the chains. The 117-year old Raffles Hotel in Singapore is the most famous property in the chain.

Noble Investment Group at the University of Alabama at Birmingham opened the COURTYARD BY MARRIOTT. The six-story, 122-room property reportedly is the first hotel built in downtown Birmingham in 15 years.

GMAC Commercial Mortgage Corp., in a first-time deal with an entity controlled by RLJ Urban Lodging Fund, Inc., provided $52.4 million in permanent, fixed-rate, acquisition financing for a three-property hotel portfolio that included the Hilton Suites Anaheim/Orange, Hilton Suites Phoenix and Embassy Suites Beachwood, OH.

A pilot program launched by STARWOOD HOTELS AND RESORTS WORLDWIDE, INC. for its new Stay In Touch technology, is designed to allow guests to remain directly connected to their hotel anytime during their stay.

The combination of art and wine has been brought together at THE SAM HOUSTON HOTEL in Houston to allow guests the enjoyment of a full sensory experience. "Amuse Your Palette" was created by the hotel's food and beverage manager and features the works of Houston artists and suitable wines. The idea for this venture was a result of poor experiences from the manager's visits to gallery openings where the art was great, but the wine was awful.

The current trend in San Francisco is hotels mixing guest rooms with condominiums. The FAIRMONT HOTEL announced that it would convert more than a third of its guest rooms to condominiums. The FOUR SEASONS HOTEL built 142 condos into its Market Street building and the ST. REGIS is planning to include 102 condos when it opens in November. This set up is a winner for hotel operators. They are able to produce more revenue by getting in on the hot residential market than they get from just renting out hotel rooms. In addition, buyers who rent their hotel condos split the proceeds with the hotel, creating a good revenue stream for owner and hotelier.

Boutique hotels such as the HOLLYWOOD ROOSEVELT HOTEL are aiming to attract locals to their properties by featuring poolside bars, cabanas and lounges and becoming the "in" place to be. These hotels face a balancing act as they try to establish their site with the local buzz without alienating the actual paying customers. While the Hollywood Roosevelt Hotel is the summer hip place to be, some guests have not been pleased with the hotel's focus on private events, such as excluding guests from the pool area during certain private events.

With escalating hotel rates, 31% higher in Montreal this summer, up 25% in New York and 20% in Washington, Chicago and Honolulu, travelers should spend time researching websites for the best prices. They should investigate advertised hotel prices for any hidden charges and to determine if taxes are included in the quoted price, especially in Europe where taxes can add as much as 25 percent. The inconsistent treatment of taxes can make a significant difference to the bottom line of the room cost.

With the hotel market hot again after weathering three years of flat growth, hotelier HORST SCHULZE and his closely held lodging company, West Paces Hotel Group, LLC, plan to launch a new chain called SOLIS HOTELS & RESORTS with the first location, the MONTCLUCIA, scheduled to open in suburban Phoenix in 2007. More than $700 million will be invested in the first six hotels. Schulze, former president of Ritz-Carlton Hotel believes the market is ripe for another entrant that combines luxury touches, including spas, boutique shopping and world-class restaurants, with impeccable service. According to Schulze, the brand will target "upmarket individuals and the corporate meeting sector".

Minibars at the MARRIOTT are being removed from guest rooms because they do not bring in enough revenue to warrant the labor cost. At the MARRIOTT MARQUIS in New York, it took 20 housekeepers seven hours to service the minibars. Marriott executives are considering installing water bottles that would sit on computerized panels in the room. A timer would be set by the front desk so guests would have 60 second to put it back and not get charged. Other hotels, though, have come up with creative ways to utilize their minibars thus making them more profitable. In lower Manhattan, the MILLENNIUM HILTON made their minibars high tech and installed bars that sense prying hands. If a soda is moved, the guest is charged thus eliminating the need for humans to manually check every refrigerator. The hotel can also lock the bars via computer from the front desk when youth groups check in.

In a Securities and Exchange Commission filing, WYNN RESORTS LTD. said it would spend more than $50 million to build a theater and pay rights fees for a Las Vegas production of "Monty Python's Spamalot". The deal between the show's producers and Wynn calls for at least a seven year run starting from the date of the first performance. Wynn Resorts also plans to debut another hit Broadway musical, "Avenue Q." in September.

Restaurant Business in Europe
by Edward Lifmann

About the author: Ed Lifmann was the only executive in the industry to be an officer of McDonald's, Burger King and Wendy's. He opened the first store for the three clients on 28 occasions in 12 markets.
The last 20 years, he has been retained as a consultant through his corporation, Trans-Atlantic Consulting, by some of the major global suppliers in the industry. He travels to Europe about 10 times a year.

Yes, there are opportunities in a market of over 370 million people. It needs careful research and selection of target markets and considerations. Many U.S. companies are extremely successful in Europe and we know who they are. Well financed companies seeking to make a start in Europe, with a quality product and patience to persist, can certainly become successful today.

The economy in Europe is lagging, particularly in Germany and France. Both countries have in excess of 10% unemployment. In Germany, if one would count the workforce that gets paid 1 Euro per hour, unemployment is around 15%. In the U.K., the economy is pretty good and Spain and Portugal show success as well.

Conversion to the Euro has created inflation, since often the new pricing of goods and services was converted at a rate of 2 to 1 or 1.5 to 1, particularly hurting the restaurant industry.

There is a very high added value tax to any financial transaction – 17 or 19% of the bill in most E.U. Countries. However, business travelers can reclaim this money through quarterly filings with a company such as Fexco.

Restaurants have become very expensive due to the Euro conversion plus added value tax. As in the U.S., property cost is very high, with London the front runner. Yet, the European stock exchanges have shown more growth than in the U.S. during the last few months. Average P/E is lower, more equity growth is most likely.

The biggest problem in Europe is Bruxelles, a growing and ugly bureaucracy that shows no constructive or creative ideas to stimulate industrial growth, or combat the high unemployment. Bruxelles to me is like a boa constrictor choking business development and entrepreneurships.

The agreement on national Euro deficits is in shambles and has been broken by France, Germany and Italy several years in a row. The Euro – Dollar exchange rates are a problem on both sides of the Atlantic, but currency trades have had a field day. Profitability of global companies can be affected both ways by the currency fluctuation in Europe.

Islam is a growing problem in Europe with no end in sight. France for instance has a Moslem population of 10 million almost 20% of its population.

Nationalism in on the rise in all countries, in spite of the E.U. The E.U. or common market is not so common, and serious cross border obstruction, particularly in agricultural products, exists.

Air travel between European cities can be very expensive where no-frills airlines operate.

Yes, there are negatives in Europe and yet there are great opportunities as well. Market niches exist and very sophisticated executives can be recruited.

Contact Information:
Edward Lifmann
Trans-Atlantic Consulting
135 Somervelle Street
Alexandria, VA 22304
Telephone: (703) 461-3838
Fax: (703) 823-3721
Email: elifmann@aol.com

Change To Win Coalition Breaks Away To Focus on Organizing

By: David Steffen

The name chosen by the group of labor unions that recently separated from the AFL-CIO reveals their plan and foreshadows the challenges to come. The so-called “Change To Win” coalition consists of several of the largest and most aggressive unions including the Teamsters, SEIU, UFCW, UNITE HERE, the Laborers, the Carpenters and the United Farm Workers. These unions already represent nearly one-third of all union members in the country. In addition, these unions filed nearly half of the NLRB representation petitions in 2004 and their win rate in these elections is daunting, particularly when viewed in light of the fact that the key reason for their departure from the AFL-CIO was a desire to dedicate even more money and effort to organizing. Led by the SEIU which won an amazing 75% of their elections in 2004, the unions in the Change to Win coalition together won nearly 60% of their NLRB elections.

The key question in light of this schism and the widely-publicized reasons for the division is what does it mean for employers – many of whom may have come to view labor unions as an afterthought. We believe the following should be expected and prepared for:

An increase in union organizing in key sectors. The Coalition has stated it will dedicate the tens of millions of dollars in dues that used to go to the AFL-CIO to organizing. In addition, the unions in the Coalition have repeatedly expressed their belief in the need cooperate and occupy the field in targeted sectors to increase bargaining leverage. Thus, employers in healthcare and facility maintenance services (SEIU), warehousing, distribution and transportation (Teamsters), food processing, grocery and retail (UFCW), hotels and restaurants (UNITE HERE), textiles and clothing (UNITE HERE), construction (Carpenters and Laborers) and food production (Farm Workers) can expect a significant increase in coordinated organizing activity.

A general increase in union organizing. For years, the AFL-CIO has had no competition for new members. With the Coalition as a lean and mean competitor that is not restricted by anti-raiding provisions, the remaining AFL-CIO unions will have to increase their own organizing efforts to compete. The construction, health care, food processing and hospitality industries are likely to experience this first but unions that focus on other areas will also see renewed efforts as the UAW, Steelworkers/PACE, the CWA the IBEW, AFSCME and other large and powerful unions seek to protect their base in manufacturing, government services, call centers, services and construction.

Corporate and Grassroots Organizing Tactics: The members of the Coalition developed some of the most successful organizing strategies used by unions today and these and other creative efforts will continue. Corporate campaigns designed to pressure employers into neutrality or card check recognitions will increase. This may include consumer boycotts, negative publicity campaigns, international pressure from foreign unions/governments on employers owned by foreign entities, internet and email blasts, lawsuits and governmental investigations (e.g., OSHA, DOL and EEOC) and shareholder resolutions. Grassroots efforts like those pioneered by the SEIU and UNITE HERE designed to create a “class warfare” mentality are also likely to be utilized. By hiring dedicated and aggressive organizers and focusing on an increasing immigrant population in certain sectors, minority and women's’ issues and the reported gap between the “working class” and “wealthy,” the Coalition is likely seek the support of community groups, religious organizations, and politicians to create a union movement modeled after the civil rights movement of the 1960s.

Coordinated and Intensified Bargaining: Employers with unions, particularly those in economic sectors occupied by the Coalition, are likely to see increased difficulties in collective bargaining as Coalition members seek to “raise the floor” for members. Coordinated bargaining positions similar to those taken by UNITE HERE in hotels on the east and west coasts , the SEIU in hospitals and nursing homes in California, Nevada and the Southeast and the UFCW in grocery stores throughout the country will expand.

Due to the likely increase in union activity in the near future, we are advising all of our clients and professional and industry associations to take steps to prepare. These steps include:

Dust Off Employee Relations Programs: The best method to avoid unionization is to maintain positive employee relationships and good HR practices. The old adage an ounce of prevention applies more here than it does to almost any other area of employment law. Forgotten or seldom used incentive programs, open door policies, grievance procedures, supervisor training initiatives and wage/benefits benchmarking programs should be reviewed and updated.

Employee Relations Audit: Employers in key economic and geographic areas and those who are partially unionized or have recently experienced union activity should evaluate areas of concern and vulnerability. As indicated above, it is better to assess and resolve issues proactively rather than discovering issues after being targeted for an organizing campaign.

Management Training: Incorporating employee-relations and union avoidance training into supervisory training programs to raise awareness of the causes of unionization, signs supervisors should look for that an organizing drive has begun and legal steps that can be taken to resist an organizing effort is critical.

Formalize Plans and Strategies: Employers and associations in high risk areas such as hospitals, nursing homes, hotels, construction, distribution, textiles, food processing, etc. should develop formalized labor relations programs so that, if targeted, a plan is in place to minimize response time.

• The dramatic change in the union structure that has been in place since the 1970’s and grew complacent presents unique challenges for employers. Additional unions will probably defect from the AFL-CIO in favor of a more progressive strategy. Others will likely merge and combine efforts to solidify their base. Overall, employers should take immediate efforts to evaluate their organizations and protect themselves and their employees so that they do not become the “losers” in a confrontation with Change to Win.

David Steffen is a labor and employment attorney with Constangy, Brooks & Smith, LLC in its Tampa, FL office.  He can be reached at Dsteffen@Constangy.com or by phone at (813) 223-7166.

Consultants

Robert Novick, Vice President/Managing Principal

The North Highland Company
1777 South Harrison St.
Denver, CO 80210
303-740-6250

All consultants look the same. Not true. Probably more true is that we all sound the same. The difference in a consultant or consulting firm is really in the experience the client enjoys. We may position ourselves as strategists, implementers, subject matter experts, or generalists. We may approach you as a big company, a boutique, or an independent. Regardless, as a client, you either like the experience and feel you got value, or you don’t.

So, what makes for a good experience?

It’s not rate. One good consultant at $175/hour is better than three at $95/hour. Sure, you got a good rate but chances are you bought contractors (staff augmentation) and not consultants. These people require instruction, leadership, and management.

It might be maturity or leadership. Many projects fail because they are poorly managed or lack critical leadership. They often need someone who knows how to disagree with the current thinking and express it without being disagreeable. These people tend to be articulate but also well rounded. They introduce you to concepts and experiences from outside your industry so that you, the client, can decide if what’s presented is better than the status quo.

It’s probably a good dose of experience and focus. Businesses too often try to make someone with a “job” lead a critical project while consultants have the luxury of focus. Our focus in the restaurant and hospitality industries is extensive. But, we don’t resell anyone’s software and are fully independent and vendor-neutral. Our client’s trust us. We’re located in 14 cities and have engaged in projects including:

• Market analysis and financial opportunity evaluation
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• Organizational alignment, development, and communication, especially as it relates to large system rollouts or acquisitions

It’s absolutely service. Too many consulting firms have forgotten that you know your business better than we do. We might know the industry well, but not your business. We at North Highland have spent over 13 years cultivating and refining our approach for individual markets. We’ve learned that success is defined by the client on their terms and no one else. We have learned that keeping our consultants off the road and in your neighborhood allows us to show up at 7am on Monday morning, eliminates travel expenses, and builds long-standing relationships and trust with our clients and communities.

We're out to change the way people think about consulting – one client at a time. Please check us out at www.northhighland.com.

Tipping is not a city in China!

Did you know that tipping is sometimes be one of the most contentious money matters that people contend with? It can be a source of friction when a difference of opinion over tipping involves people who don't know each other very well, having a powerful impact on those relationships. Whether it's on a first date, or at an occasional meal with friends or in a business meeting, a single incident can leave a lasting impression. People put different values on the services they receive and some people believe tipping is about appearance and ego, demonstrating the kind of person we're perceived to be, and the kind of person we perceive others to be. Most people want to come across as fair but prudent, not excessive and cheap.