Protect Your Most Valuable Asset

By: Jim Osborn, President , Dick Wray Executive Search

We have all read that as the Baby Boomer generation begins to retire, there will be a real shortage of younger, skilled workers to take their place. Additionally, there will be fewer foreign workers available to fill the voids, due to tighter Visa rules. The result is that growing companies are vying for a shrinking pool of qualified employees.

The least expensive way to deal with the problem is to do all that can be done to retain your existing workforce, who will be tempted by higher compensation offered by competitors. That is certainly more cost effective than finding and training new employees.

Having spent my early career with Marriott Corp., a great people company, where Bill Marriott's philosophy, as handed down from his father, J. W. Marriott, firmly believed that if you take care of your employees, they would take care of the business. Their turnover was one of the lowest in the industry. On the other side of the spectrum, there are some major companies that actually believe that people should be afraid of their job. This results in high turnover and no loyalty, a difficult, costly situation in a tight labor market.

What can be done to reduce turnover and retain your employees? Following are ten steps that can be used to help reduce turnover:

• Regular climate surveys need to be conducted to pinpoint employee dissatisfaction and resolve issues before that employee decides to resign.
• Exit interviews should to be conducted to understand why people are leaving and focus on fixing the problems.
• Salary and benefits must be competitive based on regular surveys of the industry.
• The hiring process needs to insure that the new employees fit the culture of the company so they will thrive in the environment and be accepted by the team.
• Regular performance reviews are to be conducted so employees know where they stand and what they need to do to improve and advance.
• Utilize your employees in providing input to the decision-making process. They all have a brain.
• Provide a development program to prepare your employees for advancement.
• Develop a good teamwork atmosphere with open, two-way communication without fear.
• Provide golden handcuffs that lock your employees into long term compensation programs that make employees hesitant to leave because they would leave too much on the table.
• An often overlooked area is recognition programs for achievement and longevity that will go a long way in instilling loyalty and pride.

To achieve these goals, a company needs to have an effective Human Resources function that executes the programs and all levels of managers should be held accountable for turnover.

While these are some successful ideas that build a culture of loyalty, they cannot just be lip service. The top management of the company must truly buy into taking care of their employees and act accordingly. It must be part of the corporate philosophy of the company and the guidelines for decision-making when it pertains to employees. Act now before the crisis hits you!

BOB LEVITE , who oversaw WENDY’S INTERNATIONAL's brand marketing team resigned, and MARY ANN PILOTTE, who led consumer research, analysis and marketing planning, had left the company for unspecified reasons. BOB BERTINI, Wendy’s spokesman, said the positions had not been filled, but that chief marketing officer IAN ROWDEN “is putting together a new leadership team” to guide the company’s namesake burger brand. Both Levite and Pilotte were senior vice presidents and longtime veterans of the chain.

RON LINDEMAN has been named president of MAX & ERMA’S, operator or franchisor of 78 casual-dining restaurants. He joined the company in 1990 and now replaces TODD B. BARNUM, who will remain chairman and chief executive. Lindeman most recently was executive vice president and chief development officer. Vice president of operations, JIM HOWENSTEIN, was named chief operations officer and MARY HAMILL, director of training, has been promoted to vice president of human resources and information technology.

Chief branding officer, NANCY SCHNEID, will resign Jan. 31 to launch a brand consultancy according to OUTBACK STEAKHOUSE INC. Schneid, a 15-year Outback veteran, will become an adviser to Outback’s chief executive, BILL ALLEN, and will join the boards of its Fleming’s Prime Steakhouse & Wine Bar, Paul Lee’s Chinese Kitchen and Blue Coral Seafood & Wine chains, Outback said.

JAVIER G . TERUEL, vice chairman of COLGATE-PALMOLIVE CO., was elected to the board of directors and placed on the audit committee of STARBUCKS CORP. Starbucks chairman HOWARD SCHULTZ said, “With his extensive background, both domestically and internationally, Javier will be a valuable contributor to the company as we continue to grow and become locally relevant to consumers in every market we enter.” According to Seattle-based Starbucks, Teruel has more than 30 years of experience in the consumer goods industry.

After serving on the board since 2001 and citing personal reasons, RANDY POWELL resigned from Irvine, Calif.-based DIEDRICH COFFEE INC.’s board of directors in September. Powell is president of a division of Maple Leaf Foods Inc., based in Toronto.

DARDEN RESTAURANTS, INC. said that its board has elected CEO CLARENCE OTIS as chairman. He will replace retiring JOE LEE effective Nov. 29.

Former WYNN LAS VEGAS vice president of food and beverage, KEVIN STUESSI, has joined EDGE RESORTS as senior vice president of food and beverage and strategic development for the planned $1.7 billion W Las Vegas Hotel, Casino and Residences.

Minneapolis-based BUCA INC., an Italian dinnerhouse operator, named FRITZI GOULDSBY-PIKES WOODS to its board as a “class-one” director. Since 2003, Woods was president and chief executive of PrimeSource FoodService Equipment Inc. and serves on the boards of the Dallas Convention and Visitors Bureau and various Dallas-based foundations.

JOHN N. “JACK” M C ALEER retired as executive vice president of concept development for KRISPY KREME DOUGHNUTS INC. According to Krispy Kreme, the 24-year veteran of the company also is also retiring from its board.

RICHARD H . LENNY, chairman, president and chief executive of the Hershey Co., was named to the board of directors of MCDONALD’S CORP. Lenny also serves on the board of Sunoco Inc., and he is chairman of the Grocery Manufacturers of America. Prior to joining Hershey, Lenny worked for Nabisco, Kraft Foods and Pillsbury.

SANDEE PRITCHARD has joined 180-unit DONATO’S PIZZERIA CORP. as chief people officer. She left the fast-food chain, Whataburger Inc. in Corpus Christi, Texas, where she held the same position.

Former Wolfgang Puck Worldwide vice president of operations H.THOMAS BENSEL has been hired by five-unit LEFT BANK RESTAURANT GROUP, to fill a comparable post. Bensel was director of operations for San Francisco-based Andre-Boudin Bakeries Inc. before working for the Puck group.

PAUL W . MACPHAIL was appointed chairman and chief executivefor CENTERPLATE INC., the sports contract feeder based in Spartanburg, S.C. MacPhail replaces LAWRENCE HONIG, who resigned last April. Most recently, he was president and chief operating officer of Uno Restaurant Corp. In addition, Centerplate’s general counsel, president and interim CEO since April, JANET STEINMAYER, was named chief operating officer.

President of the 60-unit 99 RESTAURANTS & PUBS chain, JOHN GRADY, was elected to the board of the MASSACHUSETTS RESTAURANT ASSOCIATION headquartered in Southborough, Mass. Also elected to the MRA board was DAVID R. BAILEY, vice president of sales and marketing for CIRELLI FOODS INC. and MICHAEL HARDER, president and chief operating officer of STELLAR RESTAURANT GROUP in Boston

BRINKER INTERNATIONAL announced that I1 FORNAIO , operator of 24 casual-dining restaurants and five wholesale bakeries in four Western states, is among the buyers of the CORNER BAKERY CAFÉ concept. Teaming up with Bruckmann, Rosser, Sherrill & Co, a private equity firm, I1 Fornaio acquired 92 Corner Bakery stores for an undisclosed sum. MIKE HISLOP , CEO of I1 Fornaio, said, "Corner Bakery and I1 Fornaio complement each other extremely well. Both have strong management teams in place and, together, we have an opportunity to grow both businesses in existing and new markets across the United States.”

In a move to expand their brand throughout Tokyo, STARBUCKS is working with a Japanese beverage maker and distributor, Suntory Ltd. in creating a chilled coffee product in plastic cups that will be sold in convenience stores. The new drink, called Starbucks Discoveries, is the company's first move into the ready-to-drink market outside of North America. In Japan, coffee sold in cans, bottles or vending machines is a $10 million market.

A recent announcement indicated that CAFÉ DE DORAL will buy out KEN FOWLERENTERPRISES' share in MANCHU WOK. The two companies bought equal shares of Manchu Wok six years ago. The buy out of KFE should be completed at the end of the month.

Michigan Gov. JENNIFER GRANHOLM has signed legislation Thursday that will push back the start of the public elementary school year until after Labor Day, starting next year. The MICHIGAN RESTAURANT ASSOCIATION has extended it thanks to the Governor as they had long lobbied for that change, which members believe will benefit the industry by lengthening summer vacations and the time high school students can work full time before going back to school. ROB GIFFORD, the MRA’s executive director, said, “This new law will be good for Michigan families, Michigan businesses, Michigan jobs and Michigan schools.”

A six-unit artist loft-theme chain, CAFÉ TU TU TANGO, signed a lease to open the chain’s seventh unit, at the Palisades Mall in West Nyack, N.J. BRAD WEISER, Café Tu Tu Tango's chairman said he intends to open the restaurant, which will serve Mediterranean-accented small plates, in “early spring.” Café Tu Tu Tango was named a Nation’s Restaurant News Hot Concept! in 1995.

Chef-owner of CHARLIE TROTTER’s restaurant in Chicago, CHARLIE TROTTER, cancelled plans to open a seafood restaurant in New York’s Time Warner Center. Trotter said he was persuaded to suspend his plans after numerous delays in targeted opening dates and continuous cost increases that were projected to near $12 million.

In a deal approved by the Nevada Gaming Commission, the owner of 300 casual-dining outlets and entertainment properties, LANDRY’S RESTAURANTS INC., closed on its purchase of the Golden Nugget casino-hotels in Las Vegas and Laughlin, Nev., by acquiring POSTER FINANCIAL GROUP INC. for $140 million in cash and $155 million in senior notes.

According to owner ARCHIE A. CASBARIAN, work is underway to reopen the New Orleans landmark ARNAUD’S restaurant and its casual Creole cafe sibling, REMOULADE. Casbarian said, “We are accessing damage, cleanup and repairs. Our staff is regrouping and we are interviewing to fill open positions. Remoulade, the smaller of the two restaurants, will open first.”

Operated by franchisee KAMLESH SHAH, the 600 th location of SUBWAY restaurants opened in North Carolina. Shah launched the new unit in a Wal-Mart store as the 23rd such in-store Subway in the state and currently owns three Subway outlets in South Carolina.

Former chairman of the National Restaurant Association and longtime New Orleans restaurateur, RALPH BRENNAN, said he could reopen two of his three restaurants immediately, but the health department is barring him because of the city’s lack of potable running water. According to Brennan, “We’re working on some alternatives. Some of the hotels have opened without potable water, using bottled water." He added, "Restaurants in the French Quarter and elsewhere also are awaiting health department approval. Everyone is kind of in the same situation right now.”

The 15th outlet of PAPA JOHN’S INTERNATIONAL opened in Shanghai, China, and its fifth in Beijing. The company plans to open 250 units in China over the next five years.

YARD HOUSE opened their Phoenix branch last month. Founder and chief executive, STEELE PLATT, said: “Phoenix is one of the fastest-growing cities in the nation, so it’s no coincidence that we decided to bring Yard House here.” A Scottsdale, Ariz., unit is expected to open in January.

A Franchise Advisory Council has been formed by BUFFALO WILD WINGS INC., operator or franchisor of 340 units, to “enhance communication and collaboration between Buffalo Wild

Wings and its franchise community.” The council, elected by other Buffalo Wild Wings franchisees and BWW executives to serve for terms of two to three years, consists of six members. PETE WATSON, for the East Central zone; KEN BROWN, for Ohio, LARRY ALDERSON, for the East; CLIFF SADOWSKY, Southwest; DAVID JONES, Midwest; and CHRIS OLEXA, representing operators of two or fewer locations will serve as the Franchise Advisory Council.

According to SONIC CORP., the 3,000-unit drive-in chain, Hurricane Rita closed 250 to 300 Sonics, with some 50 to 60 still closed because of damage or power loss. The hurricane closures are expected to reduce Sonic's revenue growth rate 1 percent for the first fiscal quarter ending Nov. 30. “However, the extent of the revenue loss likely will be mitigated partially by particularly brisk sales at drive-ins bordering the impact areas, as well as strong sales at affected drive-ins once they are able to reopen,” Sonic said. In addition, 14 franchised Sonics in Louisiana and Mississippi would remain closed for extended periods as a result of Hurricane Katrina.

MCCORMICK & SCHMICK ’S SEAFOOD RESTAURANTS INC., opened the chain’s 58th branch in Pittsburgh. SAED MOHSENI, chief executive, said the company had opened six of the seven new units planned for 2005 and remained “on track with our growth plan for the year.”

An agreement has been signed between SODEXHO USA, the foodservice and facilities management contractor, and the NAVY EXCHANGE SERVICE COMMAND, or NEXCOM, and COMMANDER, NAVY INSTALLATIONS, MORALE, WELFARE AND RECREATION, or CNI/MWR, to operate licensed STARBUCKS COFFEE locations on naval bases nationwide. Sodexho will launch Starbucks outlets over the next three years on naval bases in Norfolk, Va.; Pensacola, Fla.; Great Lakes, Ill.; San Diego; North Island, Calif.; Bangor, Wash.; and Newport, R.I.

The 50 th restaurant of PHILLY CONNECTION, has opened and will be owned and operated by franchisee OKWUDILI OKPARA, president of Pears Holding Inc. in Houston. JOHN D. POLLOCK, senior vice president of franchise development for The Philly Franchising Co., franchisor of Philly Connection said, “Texas has very strong growth opportunities for us. We’ve opened 50 restaurants in less than three years, and we plan to continue our expansion not only in Houston but other parts of the state as well.”

TRIMARAN CAPITAL PARTNERS is purchasing the EL POLLO LOCO chain from American Securities Capital Partners, a private investment firm for about $400 million. El Pollo Loco specializes in marinated flame-grilled chicken and other Mexican-inspired entrees. The move comes at a time during heightened growth in the restaurant industry where consumers are spending more on meals away from home and restaurants are competing to capture diners looking for inexpensive food that hasn't been deep-fried or juiced up with fat. So-called fast-casual restaurants such as El Pollo Loco aim to offer higher-quality food and decor than their traditional fast-food competitors. Trimaran is betting that El Pollo Loco has the right mix of healthy but tasty fare. Trimaran managing partner ANDREW HEYER said that Trimaran has signed franchise agreements for new stores in New York, New Jersey, New England, Chicago, Denver and Texas for expansion. He also said that El Pollo Loco's management, led by Chief Executive STEPHEN E. CARLEY, will invest in the company and retain their current positions. New stores will also have improved interior finishes, including upgraded fixtures, ceilings and wall treatments. "The dining rooms will be much more welcoming, upscale and comfortable," Carley said. There is also a remodeling program underway for current stores.

A 14-year deal was signed by OUTBACK STEAKHOUSE to license several trade names including Outback Sports to Horne Tipps for $7 million according to the company. Outback Sports can be used in marketing portable luxury boxes and golf memberships under the terms of the deal. Also included are other names controlled by Outback such as Trophy Suites and Paradise Golf. Per the agreement, Horne Tipps can only use the Outback Sports name until Sept. 2007.

According to the company, CBRL GROUP, operator of the CRACKER BARREL and LOGAN'S ROADHOUSE brands has raised CEO MICHAEL WOODHOUSE'S salary by $75,000, to $950,000 a year. Also, the company awarded Woodhouse 145,330 stock options with an exercise price of $34.60.

P.F. CHANG'S CHINA BISTRO INC. is preparing to test a new concept called Taneko Japanese Tavern. Calling Japanese-style casual dining "a wide-open playing field", the new concept's prices will exceed those of the company's namesake bistro chain. The concept is still in development for a Scottsdale debut. P.F. Chang's chairman and chief executive, RICK FEDERICO, is looking towards Japanese food as a likely vehicle for his company to repeat what it had done with Chinese cuisine which is to make it accessible to Middle America as a non-intimidating dining option.

Last month, WORLDWIDE RESTAURANT CONCEPTS INC. went private upon completion of its previously reported $207 million acquisition by an Australian private equity firm, PACIFIC EQUITY PARTNERS. Worldwide Restaurant Concepts Inc. operates, franchises or joint ventures 310 Sizzler restaurants worldwide, 112 KFC franchisees with the majority located in Australia, and 21 Pat & Oscar's restaurants.

Initial plans by JACK IN THE BOX INC. to convert approximately 300 units to the fast-casual JBX GRILL were scrapped during its multimarket test of the concept. Instead, they plan to incorporate elements of the stylish burger and sandwich concept into the flagship brand's format. Officials said that nine existing JBX Grills would be converted back into Jack in the Boxes.

THE RESTAURANT CO ., (TRC) operator and franchisor of the 483-unit Perkins Restaurant & Bakery brand, has been acquired by a New York-based private equity firm, CASTLE HARLAN INC. for $245 million. Chairman and chief executive of TRC, DON SMITH, was succeeded in those posts by JOE TRUNGALE, who was president and chief operating officer. TRC also owns Foxtail Foods, whose three food manufacturing facilities supply Perkins and third-party distributors with pies, cookies, cookie dough, muffins and pancake mixes and Castle Harlan owns the Morton’s and Marie Callender’s chains, a 165-unit Burger King franchise in Puerto Rico and a 25-percent stake in McCormick & Schmick’s Seafood Restaurants.

PANERA BREAD CO. agreed to buy 23 bakery-cafes from franchisee KNEAD BREAD, an area developer in Indiana. As part of the deal, Panera would pay about $27.5 million in case and assume certain liabilities, including those for two outlets currently under construction.

During a two-day meeting with restaurant analysts last month at the company’s headquarters in Oak Brook, Ill., MCDONALD’S CORP.'s chief executive, JIM SKINNER, disclosed that it plans to sell a minority interest in its popular 460-unit CHIPOTLE MEXICAN GRILL fast-casual chain through an initial public stock offering, which is expected to be made by the first quarter of 2006. The prospectus would be filed with the U.S. Securities and Exchange Commission by the end of October. The operator and franchisor of the world's largest restaurant chain also put down marketplace rumors that the company would sell a stake in its vast real-estate holdings around the world, insisting that such a move would strain its relationship with franchisees.

According to information cited in several published accounts, a New York-based hedge fund, PERSHING SQUARE CAPITAL MANAGEMENT, has bought a 4.9-percent share of MCDONALD’S CORP. They also bought nearly 10 percent of Wendy’s International while urging it to spin off its Tim Horton's chain and restructure. In a statement issued by McDonald’s, they said it had “no specific information on the extent or form” of Pershing Square’s position. Stock purchases of less than 5 percent of a company do not require a disclosure to federal securities regulators.

A development agreement was signed between HUDDLE HOUSE, a 400-unit chain based in Decatur, Ga. and THE VILLAGE EATS LLC of Seville, Ohio, to open three restaurants in northern Ohio. With the first unit scheduled to debut in October in Seville, this deal marks the first time the brand will enter the market. Additionally, an agreement was made with AG-RISK INVESTORS INC. of Clarksville, Miss., to launch six units in northern Mississippi over the next three years.

ARAMARK announced that a contract to provide foodservice for the School District of Philadelphia, which comprises 115 schools and 100,000 students, was awarded toits ARAMARK EDUCATION, SCHOOL SUPPORT SERVICES. Aramark will manage foodservice and provide all vending and catering to the district for at least a year, with a four-year renewal option under terms of the pact. The contract’s five-year revenues are estimated at $120 million.

LLOYD L. HILL , chairman and chief executive of APPLEBEE’S INTERNATIONAL INC. was presented with the coveted Operator of the Year honor as the choice of Nation’s Restaurant News readers at the Multi-Unit Foodservice Operators conference. Hill, who has headed the segment-leading operator and franchisor of the Applebee’s Neighborhood Grill & Bar chain since 1998, was chosen Operator of the Year from among the six recipients of the 2005 MUFSO Golden Chain Award, including company leaders DAN T. CATHY of Chick-fil-A, CRAIG CULVER of Culver’s Frozen Custard, PHILIP J. HICKEY JR. of Rare Hospitality International, JEREMY M. JACOBS SR. of Delaware North Cos. and JON LUTHER of Dunkin’ Brands.

TOM MUELLER resigned as president and chief operating officer of WENDY’S INTERNATIONAL's namesake burger chain. The company said Mueller, a Burger King veteran, had been with Wendy’s since 1998 and oversaw Wendy’s North American business for more than five years. In April, he had also assumed responsibility for its international division. JACK SCHUESSLER, chairman and chief executive, assumed Mueller’s role on an interim basis. Analysts said Mueller’s unexplained exit might indicate that Wendy’s same-store sales trends were continuing a nearly yearlong slide.

NOODLES & COMPANY, based in Denver, has agreed to repurchase Southern California expansion rights to the fastcasual concept from the 117-unit chain’s first franchisee, A.O. ONE, a Krispy Kreme franchise’s affiliate out of Los Angeles. KELLY PASCAL GOULD, a Noodles spokeswoman, said A.O. One approached the franchisor about the sell-back to Noodles, whose chain now includes two other franchised outlets and she said that another Southern California operator may be sought to take over regional development.

A religious-discrimination lawsuit by the U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION in Seattle on behalf of a server with wrist tattooswas settled by RED ROBIN GOURMET BURGERS INC., operator or franchisor of more than 275 casual-dining restaurants. Red Robin agreed to pay $150,000 to settle. The lawsuit charged that a new manager fired EDWARD RANGEL JR. over religious tattoos on his wrists, which included the word “God". Rangel refused to abide by Red Robin’s no-tattoo policy by covering his wrists. A Red Robin spokeswoman told Nation’s Restaurant News that the company prohibits religious discrimination in the workplace and settled the claim for practical reasons.

TWA RESTAURANT GROUP has acquired Arizona-based, 29-unit FAMOUS SAM’S restaurant and sports bar chain. Funding for the transaction was provided by CHARLIE WOOTEN and RON MEGLI of PEOPLES BANK in Overland Park, Kansas.

This year, Seattle-based STARBUCKS CORP. expects to spend more money on health insurance for its employees than it will spend on coffee and other raw products for its coffeehouses. Starbucks’ chairman, HOWARD SCHULTZ, told a gathering of Washington state congressional representatives that the company provides health care to all employees who work more than 20 hours a week and that it has faced double-digit increases in health insurance each year for the past four years. The meeting, with Sen. PATTY MURRAY and Rep. ADAM SMITH, both Democrats, was called by Schultz to draw attention to what he said is a growing crisis in health insurance costs.

The first franchise deal for Texas has been announced by fast-casual brand EARL OF SANDWICH with the newly formed ROUND ROCK SANDWICH CO. LP, headed by investment banker DON SANDERS, a founder and director of Sanders Morris Harris. Also, the franchise includes NOLAN RYAN, baseball Hall of Famer and ROGER CLEMENS, pitcher for the Houston Astros. Round Rock’s first location is expected to open by January in the Houston area. Launched in Downtown Disney Marketplace in Orlando by chain impresario, ROBERT EARL, annual sales at the first U.S. Earl of Sandwich reportedly exceeded $6 million.

This spring, JOËL ROBUCHON, famed French chef, is slated to open a restaurant in the FOUR SEASONS HOTEL at the location of the current 5757 restaurant in New York. His comparatively casual concept, ATELIER DE JOËL ROBUCHON, already has locations in Paris and Tokyo. Robuchon says the welcoming of tapas and sushi bars inspired the concept.

Irvine, Calif.-based ELPOLLO LOCO INC. has committed to offering new, health-oriented menu items at the 327 grilled-chicken restaurants it operates or franchises to others. Disclosed at California Gov. Arnold Schwarzenegger’s Summit on Health, Nutrition and Obesity in Sacramento, Calif., the chain’s initiatives include plans to serve trans-fat-free tortillas; the planned October debut of a low-fat, low-calories Chicken Tortilla Soup item; and the application of new tools to disclose the nutritional value of menu items.

Saying its nearly 5,400-unit U.S. chain had sold 100 million 99-cent Snacker sandwiches in the six months since their March debut, KFC CORP., a YUM! BRANDS INC. division, is calling the item the most successful sandwich launch in the brand’s history. KFC said some units were selling up to 1,000 Snackers (fried chicken breast meat with pepper mayo and lettuce on a sesame seed bun) each week.

Honoring restaurants’ contributions to their communities, the NATIONAL RESTAURANT ASSOCIATION named its 2005 Restaurant Neighbor Award winners as well as the recipient of the Cornerstone Humanitarian of the Year Award. Also, to recognize how chains make a difference on a broader level, the NRA also added a “national corporate” category. The Restaurant Neighbor Award winners were PALMER PLACE RESTAURANT in LaGrange, Ill. and RUNZA RESTAURANTS in Lincoln, Neb. the title in the “national corporate” category was awarded to ARBY’S LLC of Atlanta. BRUNO SERATO of ANAHEIM WHITE HOUSE in Anaheim, Calif., won the Cornerstone Humanitarian of the Year Award. Each winner received $5,000 from the NRA to continue their community outreach efforts.

Franchise agreements were signed between SIZZLER, operator or franchisor of 313 grill-buffet restaurants and four franchisees agreeing to open 25 units over the next few years. Those franchisees include Salt Lake City-based SIZZLING PLATTER, which expects to open its 22nd Sizzler, in Boise, Idaho, as its first new unit in 12 years; Sizzler’s largest franchisee, BMW MANAGEMENT INC., which plans to increase its 25-unit fleet by four locations in Northern and Southern California; Las Vegas-based WITMAN’S FOOD LLC, which currently has one unit under construction and plans three more in the greater Las Vegas market; and Sizzler’s Puerto Rico franchisee, MULTI SYSTEMS INC., which expects to open two restaurants.

BURGER KING CORP . plans to pay $250 in cash to each of the undisclosed number of hurricane-displaced employee of affected BK restaurants, including those owned by franchisees. A chain spokeswoman said that the unspecified sum will come from the company’s social-responsibility arm. The No. 2 burger chain also announced a new effort called the “Displaced Employee Assistance Program,” which was created to find jobs for all employees of franchised and corporate restaurants who were forced to relocate because of Hurricane Katrina. Burger King said restaurants participating in the program are in 13 cities from Tampa, Fla., to Houston, TX. and hundreds of jobs are available in positions ranging from hourly jobs to restaurant manager.

Between 25 and 30 franchised branchesof SONIC CORP. remained closed because of damage from Hurricane Katrina. Sonic, owner or franchisor of the 3,000 Sonic drive-ins, said “About one-half of these closures are believed to be temporary in nature, awaiting restoration of utility services.” The rest “may have incurred significant structural damage and could be closed for a prolonged period of time.” Sonic’s chairman and CEO, CLIFFORD HUDSON, said the hurricane caused no physical damage to joint-venture Sonic’s outlets in which the company owns a majority stake. Donations to the American Red Cross will be collected by Sonic through Oct. 15 and the company said that they will “set aside $250,000 to match contributions from its operators and supply partners for Hurricane Katrina victims, including employees at a number of its franchise locations.”

Evacuated from its headquarters in Jefferson Parish near New Orleans, the LOUISIANA RESTAURANT ASSOCIATION has reopened temporarily in Louisiana Technology Park in Baton Rouge. TOM WEATHERLY, spokesman, said the headquarters in Metairie suffered roof damage Aug. 29 and still lacked electricity or water. JIM FUNK, Association CEO, said the LRA now was able to receive and pay claims for workers’ compensation and other member services.

MCDONALD’S CORP . has said that it remains committed to finding employees in areas hit by Hurricane Katrina, and finding ways to compensate an unspecified number of displaced staffers. Spokesman Bill Whitman said McDonald is paying regular salary and wages to all corporate employees, including field staff, managers and hourly workers. He added that 100 of the company’s restaurants remained closed as of Sept. 7, and an estimated 30 “will need extensive work to be reopened.” He also said that Franchisees make their own decisions about how to compensate affected workers. Whitman said McDonald’s is considering electronic payroll cards to compensate employees as it has wrestled with “a logistical nightmare” to get paychecks to Gulf region workers who had evacuated.

OUTBACK STEAKHOUSE sustained $800,000 in lost sales and $11,000 in royalties from franchisees in Florida, Alabama, Louisiana and Mississippi with the closure of 28 units due to Hurricane Katrina. Two restaurants that will remain closed indefinitely in Mississippi because of extensive damage are a Bonefish Grill branch in Biloxi and an Outback in Gulfport. Outback also said that it was incurring costs for financial and housing assistance to employees displaced by the catastrophe.

A franchise agreement has been signed between BRINKER INTERNATIONAL INC. in Dallas with ALSEA S.A. DE C.V. and GRUPO ALIMENTOSY DIVERSION, to open a total of 14 CHILI'S GRILL & BAR locations in the Mexico City market.

BRINKER INTERNATIONAL spokesman, CHRIS BARNES, said it was “too soon to know the extent of the damage” to the six Chili’s, the Romano’s Macaroni Grill and several other Brinker outlets in the New Orleans area. He said, “We have people en route to assess, but it might be awhile before we know anything detailed. There are a lot of concerned people here at headquarters and throughout the system. We are still in an information gathering stage.”

RUTH’S CHRIS STEAK HOUSE ’s headquarters in suburban Metairie was closed by structural damage and lack of power due to Hurricane Katrina. They also have closed two restaurants in New Orleans because of flood and wind damage. Personnel are being transferred to a relocated headquarters in Orlando, Fla. In Biloxi, Miss., the newest Ruth’s Chris was to have debuted on Sept. 1 but its opening will delayed until next year due to significant damage from the storm.

Also scheduled to open in Biloxi during the same week that Hurricane Katrina struck was HARD ROCK HOTEL & CASINO, however, HARD ROCK CAFE INTERNATIONAL in Orlando will have to consider rebuilding its storm-damaged unit.

In an Aug. 30 report, analyst JACK RUSSO of A.G. EDWARDS & SONS, repeated his assertion that restructuring by Dublin, Ohio-based WENDY’S INTERNATIONAL would make the company’s namesake chain an “attractive acquisition candidate” for YUM! BRANDS INC. Yum declined to comment and a Wendy’s spokesman said the company does not “comment on marketplace rumors and speculation.” Russo wrote, “Yum still needs a burger component for its portfolio . . .especially if it intends to continue its successful multibranding strategy.”

TWA RESTAURANT GROUP , a restaurant company based in Kansas City, has acquired a chain of 29 restaurants and sports bars, FAMOUS SAM'S, with locations throughout the state of Arizona. The president of TWA Restaurant Group, BRIAN STUDDARD, said, "We are truly excited to be part of such a well-known brand in the state of Arizona. We know that Kansas City is a great sports town with die-hard fans that want to go to their neighborhood sports bar to watch their favorite team play. While we don't have a definitive timetable as to when we will enter the market, we have already begun talking with potential franchisees about opening Famous Sam's locations in the Kansas City area and we continue to look for additional qualified restaurant operators." TWA presently operates Back Yard Burgers, Captain D's Seafood, Qdoba Mexican Grill, and KC's Rockin' Rib House franchises in the Kansas City metropolitan area.

Feeling the affects of Hurricane Katrina, APPLEBEE'S INTERNATIONAL's shares fell below 22, down from over 29 in March, a level not seen in almost two years. The decrease in sales is also attributed to such factors as fewer customers are ordering dessert, more customers are choosing to drink plain water instead of soda and the increased gasoline prices. Applebee's has warned that earnings per share this year would grow only by 5%, if at all. Chief financial officer, STEVEN LUMPKIN, said that Applebee's is preparing to roll out a marketing campaign emphasizing a "value message".

COLD STONE CREAMERY , one of the nation's fastest growing franchise operations, is aiming to be the best-selling ice cream brand by the end of the decade. Cold Stone opened 362 stores last year with plans to open 400 more this year, including the company's first Tokyo franchise. RAY KARAM, Cold Stone's taste master, is frequently seeking out ideas to keep on the cutting edge of ice cream. He is often working on inventing new flavors and says he can easily tell by watching someone taste his Cold Stone ice cream whether or not he has a hit. Karam says, "What I look for after they've taken that first spoonful, they close their eyes and their knees buckle a little, and then they say they've got to have more."

A number of fast food chains including WENDY'S and BURGER KING are starting to develop restaurants with smaller kitchens and seating areas that can operate profitably in small towns. These smaller restaurants cost less to build and fit into cheaper parcels of land. POPEYESCHICKEN AND BISCUITS is also trimming square footage and even sit-down chain, APPLEBEE'S, has reduced their size in some rural areas. New York restaurant industry consultant, ARLENE SPIEGEL, stated, "The rent goes down, the labor goes down, the entire overhead shrinks, but the product keeps moving out. They really don't have the luxury of big real estate opportunities any more." These smaller restaurants can save up to a third of construction costs, too. President of the Americas for Burger King, based in Miami, JOHN W. CHIDSEY, says "When we really sat down and started talking to franchisees about why they weren't building new restaurants it became clear that we need to change." Eighty percent of fast food sales is from take out, so it's no surprise that some fast food chains are cutting down on seating areas by as much as 50 percent.

Responding to consumer demand, fast food restaurants are keeping later hours. An increasing number of fast food restaurants are now staying open later, in some cases, 24 hours. Depending on the chain, late night takes on a different look but in general, it involves offering service at least through midnight and almost always through the drive thru. WENDY'S spokesman, BOB BERTINI says, "We were one of the pioneers in this. It has been a growing opportunity for us." This year, half of MCDONLD'S U.S. stores are offering some type of extended ours. More franchisees with the SONIC DRIVE-IN chain added August to their late night June-July promotion. TOM MINER, a principal with a Chicago restaurant research firm, Technomic, says, "We've seen a push coming in the last eight to 12 months. What's driving it? They realize that their competition is making money. It's just the next frontier to make more money."

For the five weeks ended Sept. 24, OUTBACK STEAKHOUSE INC., operator or franchisor of 1,256 restaurants under eight brands, reported a 4-percent drop in same-store sales at its namesake Outback Steakhouse chain, compared with year-earlier results. The company also said same-store sales for the period increased 3.8 percent at Carrabba’s Italian Grill, 13.5 percent at Fleming’s Prime Steakhouse and Wine Bar, 9.9 percent at Roy’s and 6.5 percent at Bonefish Grill.

After pricing the initial offering on the Nasdaq exchange Sept. 28 at $14 per share, CARIBOU COFFEE CO. INC. commenced public trading of its stock on September 29 th. The company said proceeds will be used to repay all outstanding debt under Caribou’s credit facility to open new coffeehouses and for general corporate purposes.

For the third quarter ended Sept. 25, RUTH’S CHRIS STEAK HOUSE INC., operator or franchisor of 90 upscale steakhouses, posted 9.3-percent increase in sales to $43.8 million. The loss of 71 business days to hurricane-related closures affected total restaurant sales. Excluding the company’s Louisiana locations damaged by Hurricane Katrina, same-store sales for the quarter rose 11 percent.

In its first-quarter earnings, DARDEN RESTAURANTS INC., operator of 1,392 restaurants, posted a 20 percent increase on a 10 percent jump in sales and increased its semiannual dividend to 20 cents a share.

Systemwide domestic same-store salesat AFC ENTERPRISES, operator or franchisor of 1,831 POPEYES CHICKEN & BISCUITS restaurants, rose 0.9 percent for the four weeks ended Aug. 7 and 1.1 percent for the four weeks ended Sept. 4. In addition, 43 Popeye's restaurants remain closed in the Gulf Coast region after Hurricane Katrina, including 34 AFC-owned units.

MCDONALD ’S CORP., which had $8.6 billion in debt outstanding as of June 30, is redeeming $150 million worth of its notes. The company said the $150 million in notes will be redeemed at 103.26 percent of the principal amount, plus accrued interest.

Compared with year earlier results, CKE RESTAURANTS INC. doubled its second-quarter earnings before special items but said same-store sales for both Carl’s Jr. and Hardee’s had fallen for the four-week period following the quarter’s close. For the quarter, CKE reported net income of $8.4 million compared with a loss of $12.7 million for the same period last year.

The board of directors for IHOP CORP. approved a 1-million-share increase in the company’s stock buyback authorization, bringing the total authorization to 4.6 million shares. IHOP has bought back about 3.3 million shares since the inception of its repurchase program in January 2003.

For the four weeks ended Sept. 6, PANERA BREAD CO., operator or franchisor of 795 bakery-cafes, said systemwide comparable-store sales increased 7.8 percent.

For the three months ended July 24, WORLDWIDE RESTAURANT CONCEPTS INC., operator or franchisor of 310 Sizzler restaurants worldwide, reported first-quarter net income of $1.9 million, or 6 cents per diluted share. In the same quarter last year, Worldwide earned $489,00, or 2 cents a share.

Financial statements for the second quarter ended July 31 have been delayed by KRISPY KREME DOUGHNUTS INC, however, securities regulators were told that the company expected to record a loss for the period on a 21-percent decline in corporate revenue to $140 million. While under federal investigation and facing numerous shareholder lawsuits, the embattled operator or franchisor of nearly 400 doughnut shops has not filed formal financial results with regulators since last September and still is working to restate results dating back to fiscal 2001.

On September 15, the operator or franchisor of 1,597 casual-dining restaurants, BRINKER INTERNATIONAL INC., declared its first quarterly dividend, of 10 cents a share. Shareholders of record on Nov. 22 will be paid the dividend Dec. 14. Brinker has about 88.7 million shares outstanding and owns the Chili’s, Romano’s Macaroni Grill, On The Border, Maggiano’s Little Italy and Corner Bakery brands.

Third-quarter earnings projection were raised by RED ROBIN GOURMET BURGERS INC. to a range of 33 cents to 35 cents per diluted share, up from previous expectations of 28 cents to 30 cents per share although, according to Thomson Fist Call, the raised outlook still fell short of Wall Street expectations. Securities analysts had anticipated third quarter earnings of 38 cents per share.

BUCA INC., owner and operator of 107 dinnerhouses under the Buca di Beppo and Vinny T's of Boston brands, completed a sale/leaseback transaction involving eight restaurants, which netted the company $17.5 million. The proceeds were used to prepay one of Buca’s outstanding loan facilities in its entirety and to prepay a portion of another.

During Hurricane Katrina and its aftermath, CEC ENTERTAINMENT INC., owner or franchisor of 505 Chuck E. Cheese’s pizza and child-entertainment emporiums, said that 17 of its company-operated units were closed and five units remained closed, for a total loss of 128 store-operating days. CEC also reported that through the first 10 weeks of its third quarter, same-store sales had fallen 5 percent from year-earlier levels.

According to a filing with securities regulators, COSÍ INC. shares jumped Tuesday as the company forecasted a smaller-than-expected per-share loss for fiscal 2005 on stronger sales and slightly lower restaurant operating expenses.

Same-restaurant sales at CBRL GROUP INC. for the four weeks ended Sept. 23 fell 2.4 percent at its Cracker Barrel Old Country Stores chain and its same-store gift shop sales plunged 11 percent. Same-store sales for the company’s Logan’s Roadhouse chain slipped 1.5 percent.

The company warned of a “marked decline” in its sales trends despite its 27-percent increase in fourth quarter profit and a 9-percent rise in revenue for the three months ended July 29. CBRL blamed gasoline prices and the effects of hurricanes Katrina and Rita, which had cost the company about 167 store operating days as of Sept 27 th. Three Cracker Barrel and two Logan’s Roadhouse locations remained closed as a result of the hurricanes. Separately, CBRL raised its quarterly dividend 8.3 percent to 13 cents per share.

For the four weeks ending Sept. 3, YUM! BRANDS INC., U.S. same-store sales for company-owned restaurants rose 7 percent at Taco Bell, 3 percent at Pizza Hut and 4 percent at KFC. For the period ended Aug. 31, systemwide sales had increased 14 percent in local currencies for its China division, which includes mainland China, Thailand and KFC Taiwan. Yum also saidthat HURRICANE KATRINA caused “significant damage” to 15 company-owned Taco Bells, about 1 percent of the chain’s company-owned units, and 60 franchised branches of Yum’s three core brands, or less than 1 percent of total franchised units.

For the third quarter ending Oct. 2, O’CHARLEY’S INC., operator or franchisor of 232 casual-dining restaurants, lowered its earnings estimate to between 2 cents and 5 cents a share from a previous forecast of 11 cents to 15 cents a share, in the wake of hurricane damage, lower-than-expected check averages and higher labor costs. Three restaurants are currently closed in the aftermath of Hurricane Katrina.

Same store sales at RUBY TUESDAY INC. for the first quarter ended Aug. 30 fell 3.9 percent at company-owned restaurants and 6.4 percent at domestic franchise units.

For the four weeks ended Aug. 26, same store sales at BOB EVANS FARMS INC. fell 1.5 percent at its Bob Evans family restaurants and rose 3.8 percent at the company's MIMI'S CAFÉ chain.

Your Resume…Does Length Really Matter?

By: Bettie Biehn

To say that there are differing schools of thought on the best length for a resume would be an understatement. Some people swear by a one-page resume, claiming that hiring managers don’t have time to, and don’t want to, read more than a single page. Others claim that one-page resumes short-change the applicants’ skills and experience, and two or more pages are acceptable.

My sense is that this discussion boils down to personal preference, and industry standards. Some types of businesses simply prefer brevity, and others demand more information. Candidates need to know what those preferences are, and provide what is desired by the hiring companies. Two of my recent resume clients provided a birds’ eye view of this dichotomy of thought and preference.

One client, a political appointee with a campaign and fundraising background, insisted that she needed a one-page resume even though she had a full history of employment experiences spanning nearly 20 years. Initially I disagreed, and tried to persuade her to go with a longer resume, especially as she was seeking employment in a different venue. However, I let this client lead after a first attempt at a “standard” resume showed me that, in this case, she knew best. By listening to her description of possible new employers, I crafted a one-pager that suited her needs and actually showcased her talents admirably. I also incorporated more creativity in formatting, producing a readable product.

The second client worked in software integration within a specialized field, and hiring managers in his industry appreciated receiving as much information as possible. My first encounter with resumes in this industry was accompanied by wide-eyed wonder, and the thought “who reads all of this stuff?” I found out that companies want and need to know almost every detail of a candidate’s background and experience, especially as technological advances are moving at tremendous speed, and up-to-date skills are at a premium.

And for me, a lesson learned from these two clients is that we resume writers need to be more flexible in our approach (I’m heeding these words as I write them), and those of you seeking assistance with resumes must make your needs known. YOU know your industry, YOU know what’s acceptable, and your resume writer may not. And if your resume writer isn’t willing to flex when crafting YOUR resume, then maybe you should find someone who will.

Okay, I’m climbing down from my soapbox now, and getting back to writing resumes. And I promise to remember the words I just wrote.

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 .

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, SE, QSR
3. VP Development, New England
4. Director of Training, Southeast
5. Director of Purchasing, West
6. VP Operations & Development, QSR, West
7. Chief Purchasing Officer, Southeast
8. Director of Franchise Services, Southeast/Northeast
9. Director of VIPS, Mexico City
10. Chief Marketing Officer, Southeast
11. VP of Marketing Concept Restaurant S.CA

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.

Until recently, the Baby Boomers made up the majority of the customer base of hotels but now the Generation Xers are becoming the dominant force. MARRIOTT INTERNATIONAL'S executive vice president for brand management, MICHAEL E. JANNINI, expects Gen Xers will be the "majority of the business travel segment" in two years when the oldest of them start turning 42. Hotels of all types are increasing their efforts to bridge the generational divide by adding features such as express checkouts that are popular with younger guests. Referring to Baby Boomers who grew up with places like the HOLIDAY INN and HILTON, thehead of the hospitality practice at PricewaterhouseCoopers, BJORN HANSON says, "They want to sit on their bed, have room service and watch TV." He added that these guests are more likely to be loyal, lifelong customers. However, Boutique hotels, more likely to attract Gen Xers who don't want to just "relax" in the evenings, are offering them a place to socialize and party within the hotel. According to PETER C. YESAWICH, chairman and chief executive of Yesawich, Pepperdine, Brown and Russell, Gen Xers "are far more interested in technological features and less interested in traditional manifestations of service, like concierge floors; they live in an on-demand world." STARWOOD is planning a toned down version of their W HOTEL, code named XYZ, where the décor will feature loft like guest rooms, landscape outdoor space for socializing day and night and an energetic lounge scene. MARRIOTT is revamping lobbies of their COURTYARD Hotels, converting them into flexible, open spaces that feature wireless Internet access and "grab and go" food pantries. At the Marriott and Renaissance chains, hi definition TVs with flat panel screens and connectivity panels for laptops are being installed, along with personal digital assistants and entertainment devices. New comforters and duvets have replaced the traditional flowered ones both Marriott and Hilton hotels. INTERCONTINENTAL'S new brand, INDIGO, is designed for the technology minded traveler, ages 28-55 and features a contemporary décor, wireless internet service and 24 hour fitness studios and business centers. And, HOLIDAY INN SELECT properties have joined in by installing new bedding, showerheads and other amenities.

There is a growing hotel market in Providence, Rhode Island. Following years of non-growth, five major hotel projects are underway. This boom is a reflection of investors with capital who don't like the stock market's returns. Availability of financing for new hotels, along with a strong demand for hotel rooms, is driving the boom. Developers see Providence as an underdeveloped market with a growing future. A 31-story, 200-room tower will become a WESTIN and a deteriorating Masonic Temple will be converted into a 274-room RENAISSANCE. An existing Holiday Inn will become a high-end HILTON, adding 40 additional rooms. Providence's hotel occupancy rate was 73% in 2004, which was approximately 10% higher than the national average. The Rhode Island Convention Center Authority has continually sought to get more rooms for a number of years, saying a lack of accommodations have prevented bookings from large conventions and shows.

Over 3,500 attendees gathered in Las Vegas last month for the 2005 INTERCONTINENTAL HOTELS GROUP Americas Investors and Leadership Conference in the MANDALAY BAY conference center. The conference incorporated a series of sessions focusing on IHG’s seven brands, including: Holiday Inn, Holiday Inn Express, Staybridge Suites, Crowne Plaza, InterContinental Hotels and Resorts, Candlewood Suites and Hotel Indigo. MARK SNYDER , senior vice president/brand management for HOLIDAY INN HOTELS AND RESORTS , highlighted several initiatives the seminal brand is pursuing including the revitalization of the brand's HOLIDOME indoor activity pool/recreation center concept that first made a splash in the 1970s, as well as introduction of an interactive indoor water park concept. Also, at 10 hotels, the brand is testing check-in kiosks and e-Host, a virtual concierge. Holiday Inn Select will incorporate several layers of amenities as it tries to capture share from Generation X travelers by partnering with Sporting News to put a sports-focused restaurant, SPORTING NEWS GRILL, in every Select property. Select also is working with fitness-equipment provider, Nautilus, to create dedicated fitness centers, guestrooms featuring an iHome iH5 all-in-one iPod docking station, a clock radio and charger that can accommodate any MP3 device, a new bedding and new employee uniforms that reflect current fashion trends popular with Gen Xers, like cargo pants and fleece shirts.

LESLIE NG has been named as chief investment officer of INTERSTATE HOTELS & RESORTS, the country's largest independent hotel management company, and will be responsible for all acquisition activity, including sourcing and negotiating new investment opportunities as well as managing joint venture relationships and identifying new management opportunities. Ng comes to Interstate from Cushman & Wakefield, where he was senior managing director.

FOUR SEASONS HOTELS & RESORTS has opened its newest property in Hong Kong. The property is a 399-room hotel that is part of a multi-use project overlooking Victoria Harbor on Hong Kong Island and occupies one of four towers that comprise the International Financial Centre complex.

LA QUINTA CORPORATION opened its 100 th Baymont-branded franchise property, the BAYMONT INN & SUITES in Las Vegas. The hotel is owned by GRACE HOTELS LLC and operated by PACIFIC INNS LLC.

GUNTER MULLER has been named GM of RESORT QUEST'S Aspen, Colorado operations. Resort Quest manages rental properties including hotel units and has 480 properties in the Aspen market, including the INN AT ASPEN and the ASPEN LODGING CO. Muller was previously with MARRIOTT INTERNATIONAL, where he managed the RENAISSANCE-branded hotels in the United Kingdom.

In downtown San Francisco, the luxury, five-star FOUR SEASONS HOTEL, along with a 100,000-square foot restaurant, are for sale. The 41-store building has privately owned high-rise condos, which are not for sale. General Manager of the hotel, STAN BROMLEY, said that Four Seasons has a long-term management contract that will not be affected by the sale. A source close to the negotiations stated that the objective of such a sale is to take advantage of a hot commercial real estate market and the resurgence in the city's hotel business. An industry source says that similar top-tier hotel properties in cities like New York and Los Angeles command prices ranging from $500,000 to $1 million per room. RICK SWIG, president of RSBA & Associates, a San Francisco hospitality consulting firm said, "Around the country, the hotel transaction market is red hot. There are tons and tons of cash out there." Director of public relations for Toronto's Four Seasons Hotels and Resorts, ELIZABETH PIZZINATO, said, "We will continue to manage the Four Seasons Hotel San Francisco after the sale. These are excellent market conditions for real estate transactions, and the hotel is a real jewel in the city, certainly an asset for any owner. Four Seasons looks forward to working with the new owner."