Employee Retention: A Proven Path to Glory!

Written by Bob Gershberg, Managing Partner Dick Wray Executive Search

The apparent costs related to high employee turnover are both substantive and measurable but the hidden costs are astronomical. Recruitment, selection and training are expensive and time consuming processes. Now factor in the loss of productivity, lack of continuity, void in team relationships coupled with diminished customer communications, and the need for workforce stability cries out rather loudly.

No single factor enhances workforce stability more than solid leadership. It is imperative that all managers and supervisors in your organization are leaders attuned to the needs of today’s workforce. Is your mission clear? How is accomplishment measured? Is the culture collaborative? Do your people feel successful? A positive culture with responsive, visible and caring leadership will abet greater retention.

The days of 20 year tenures are clearly behind us. The truth is most hiring authorities are quite suspect of those who’ve been at one company for longer than 10 years. So yet again we are faced with the need to change to align with a changing workforce. It is important to understand why people change jobs in order to develop a viable retention strategy. The primary reasons are as follows:

• They do not feel valued or appreciated
• They don’t have positive feelings about the company and its image
• They don’t feel successful or sense the ability to be successful
• They are not experiencing personal or professional development
• Money

If you satisfy the first four, you will rarely lose quality folks to the fifth.

A good retention strategy must start with the premise that your people are worth retaining. In the long run it always costs so much less to hire well. Be creative in offering exceptional perks that enhance development. Health and wellness initiatives indicate you care. Financial planning seminars are important to today’s workforce. Time saving perks are valued more than ever. Provide opportunities for team members to comfortably interact both inside and outside the workplace. Celebrate their successes and special life cycle events.

Some years back during a very difficult talent pool shortage I had the occasion to chat with Norman Brinker. I queried as to how to best handle staying staffed. “Make it fun!” was his response.

All the best,

“Dick Wray Executive Search – Maintaining the same ethical recruiting standards for over 34 years.”

Chief executive, BRYCE KING, of FUDDRUCKERS INC., the 240 unit fast-casual burger chain, will retain the additional title of president that he assumed from SCOTT NIETSCHMANN upon his January departure from the company after a six-month stint. After serving as chief operating officer of Chili’s Grill & Bar, King was president before Nietschmann joined Fuddruckers last year.

The world’s largest contract caterer and facilities manager, COMPASS GROUP PLC, has chosen TREVOR BRIGGS to serve as interim chief executive of its United Kingdom-Ireland division. He is the fourth executive to hold the position in the past six months. Briggs succeeds GARY GREEN, head of the London-based company’s North American division, who took over on a temporary basis for former chief executive PETER HARRIS, who was fired in November following his implication in purportedly improper activities to procure United Nations contracts. According to Compass’s director of corporate affairs, PAUL KELLY, Green has returned to the Charlotte, N.C.-based Americas division indicating that Briggs is expected to continue as the company’s commercial executive director of the U.K.-Ireland division until September. However, he could step down sooner if a permanent replacement if found. Additionally, Kelly stated that ANDY FURLONG, who was named chief executive of the company’s Africa-Middle East division following Harris’ departure, will carry on in that post.

MIKE ARCHER was promoted by CARLSON RESTAURANTS WORLDWIDE , owner of the T.G.I. FRIDAY’S and PICK UP STIX chains, to president and chief operating officer of T.G.I. Friday's USA; he formerly was executive vice president of that division. Also, STEVE KING was promoted to president and chief operating officer of T.G.I. Friday’s International; formerly he was the division’s executive vice president. TERRI SNYDER was promoted from her former post as senior vice president for marketing and research and development for T.G.I. Friday’s USA to senior vice president and chief marketing officer of Carlson Restaurants Worldwide. Additionally, CHRIS DEVLIN was promoted to vice president of development for the chains’ parent company. Formerly, he served as Carlson Restaurants’ vice president of construction and design.

According to PAPA JOHN’S INTERNATIONAL INC ., the operator and franchisor of 2,912 Papa John’s Pizza units in 22 countries, GRANT MILLER, international managing director, has left the company “to pursue other interests”. Company president and CEO NIGEL TRAVIS, COO BILL VAN EPPS and CFO DAVID FLANERY will replace Miller, who joined Papa John’s last year, on an interim basis. Flanery will be responsible for day-to-day operations. The United Kingdom operations, including 112 franchised Perfect Pizza units, will still be overseen by managing director DANIELCOUSINEAU, reporting to Van Epps.

KAREN SHERMAN was named director of public affairs for YUM! BRANDS INC ., owner of the KFC, Pizza Hut, Taco Bell, A&W and Long John Silver’s brands. Formerly vice president of corporate communications for Papa John’s International, Sherman will report to JONATHAN BLUM, Yum’s senior vice president of public affairs.

Plans are being launched for a global franchise expansion effort at RUBY TUESDAY according to franchising president MARK INGRAM. An 11-year Ruby Tuesday veteran, RICHARD FLAHERTY, and D’WAYNE TANNER, formerly new-business development VP at Cinnabon, were named Western regional franchise development VPs. The former global franchising VP for Caribou Coffee, BACHIR MIHOUBI, was named an international franchise agent.

Franchise division vice president SAMUEL WILENSKY, a 30-year veteran of DENNY’S INC. was promoted to senior VP of franchise operations. Wilensky will oversee 1,035 franchised Denny’s, nearly two-thirds of the 1,578-unit chain.

Chairman MARCUS E. JUNDT of KONA GRILL INC. is assuming, on an interim basis, the duties of chief executive and president C. DONALD DEMPSEY, who has retired from the nine-unit casual-dining operator after holding those posts since May 2004. Kona said Dempsey is also resigning from Kona Grill’s board. A search is underway for a permanent replacement.

NATHAN ’S FAMOUS INC., with 361 units, now has a branch with a full menu that has been opened by a Nathan’s franchisee. The Mall of America outlet in Bloomington, Minn. will offer, in addition to the brand’s signature hot dogs and French fries, chili dogs, 5-ounce hamburgers, grilled chicken and seafood items, the latter from the menu of sister brand Arthur Treacher’s.

A multiyear extension running through 2016 was signed by the sports and entertainment division of ARAMARK, a contract foodservice and facilities manager, to continue serving ANGEL STADIUM in Anaheim, Calif., home of the Los Angeles Angels Major League Baseball team. The extension covers general concessions and club-level and luxury-suite food and beverage services. According to Aramark, they plan to invest in equipment upgrades at foodservice stations and menu enhancements at the stadium’s restaurants.

An announcement by franchise strategy consultant FRANSMART, master U.S. franchisor for the American division of the Canadian-based FIRKIN GROUP OF PUBS, stated that within the next five years, VALONT GROUP LLC of Houston will open five of the British-style Firkin pub-restaurants in the Texas markets of Houston, Sugar Land, Tomball, Katy and The Woodlands.

Oakland Raiders wide receiver, RANDY MOSS, has purchased a stake in INTA JUICE, a franchisor in Fort Collins, Colorado, of juice bars operated under that name, and plans to serve as an executive and franchisee of the company. The football star is scheduled to open his first franchise, in his hometown of Charleston, W.Va., in May.

Franchisees ABDUL RAHMAN MUFTAH, AL MUFTAH and JOHN MATHEW agreed to develop two restaurants in the United Arab Emirates according to BENNIGAN’S GRILL & TAVERN, the 310-unit division of METROMEDIA RESTAURANT GROUP. According to Bennigan’s, new restaurants opened last month in Villahermosa, Mexico, and Gran Via, El Salvador, bringing the chain’s international fleet to 45 locations in 10 nations.

According to contract caterer and facilities manager, SODEXHO USA, its first EINSTEIN BROS. BAGEL unit in Hawaii will open this spring at the Pearl Harbor naval base in Honolulu. Sodexho operates Einstein Bros. outlets at several colleges, universities and health care facilities nationwide.

SODEXHO USA also has taken over all foodservice operations at the Sears Tower in Chicago from LEVY RESTAURANTS, a division of Charlotte, N.C.-based COMPASS GROUP USA based in Chicago. Recently, Levy had been embroiled in legal disputes with the property’s owners and was given a seven-day notice to exit the building after more than 20 years management at the nation’s tallest building. BARBARA CARLEY, Sears Tower’s managing director, said Sodexho would shutter Levy’s restaurants “one by one and reconcept them.” Reports said that Levy sued the building last fall attempting to

recover more than $250,000 in allegedly unpaid management fees and operating expenses and had filed a similar suit earlier in the year seeking more than $500,000 in damages. However, according to MICHAEL PERLBERG, its senior vice president and legal counsel, Levy received payment in full.

The founder and chairman of RICH PRODUCTS CORP. died last month at the age of 92 in his Palm Beach, Fla., home. ROBERT RICH SR., who built Rich Products into a $2.5 billion a-year company from his 1945 invention of the first nondairy whipped topping, was a driving force behind the growth of the frozen-food industry.

A proposed settlement was reached by DAVE & BUSTER’S INC., owner of 46 restaurant entertainment complexes, in a shareholder lawsuit over the company’s planned acquisition by WELLSPRING CAPITAL MANAGEMENT LLC, a New York private-equity firm. CLAIRE PARTNERS, the shareholder, had sued on Jan. 20, alleging breach of fiduciary duty over the proposed per-share sale price of $18.05, which when announced Dec. 8, was estimated to total $375 million.

As thousands of people rampaged in violent protests of the Prophet Mohammed cartoons published in Danish and other Western newspapers, a KFC unit was burned and windows were broken at a PIZZA HUT and a MCDONALD’S restaurant in Lahore, Pakistan. A second KFC in the city of Peshawa reportedly was burned as more than 70,000 people took to the city’s streets in riots linked to two deaths and more than 10 injuries. In a statement issued by a spokesman for YUM! BRANDS INC., parent of the KFC and Pizza Hut brands, the spokesman said, “Fortunately, no employees or customers were injured to the best of our knowledge. Our franchisee is assessing damage.”

President and chief executive of the Famous Dave’s barbecue chain, DAVID GORONKIN, was named by the INTERNATIONAL FOODSERVICE MANUFACTURERS ASSOCIATION as the top restaurant executive within the full-service chain market. The best executive in the quick-service sector went to CRAIG CULVER, CEO of the company that franchises the Culver’s burgers-and-custard concept, and BOB KINKEAD, chef-proprietor of Kinkead’s and Colvin Run Tavern in the Washington, D.C., area, was honored as the standout among independent operators. The vice president of restaurant development for Steve Wynn’s new Wynn Las Vegas casino hotel, ELIZABETH BLAU, was chosen for the IFMA honor, known as the Silver Plate in the hotel-and-lodging category. In the four onsite classifications of IFMA’s annual awards program, RON RECH, director of food and nutrition services for the Resurrection and Family Medical Centers was chosen a Silver Plate winner in the health care category. The other three awards went to BEVERLY GIRARD, director of food and nutrition services for the school board of Sarasota County, Fla., for school feeding; TED MAYER, chief operating officer of Harvard University, Cambridge, Mass., for college-and-university foodservice; and RON ERHARDT, director of food services for procurement at Prudential Financial, Newark, N.J., in the business-and-industry/foodservice management competition. The program director for the St. Vincent Senior Nutrition Program in Los Angeles, SISTER ALICE MARIE QUINN, was named a winner in the specialty foodservices category. All nine Silver Plate winners are the finalists for IFMA’s foodservice operator of the year honor, the Gold Plate Award.

A fast-casual chain of more than 450 chicken-wing specialty restaurants, WINGSTOP RESTAURANTS INC., said the system would add 22 branches in the Phoenix market, 11 of them owned by the franchisor and 11 by franchisees. Its expansion was kicked off with the debut of a location in Mesa last month. According to the company, in order to open four units in the Phoenix territory, franchisees TRACY HENRY and JACQUI BREWER of JTP PARTNERSHIP INC. sold two Wingstop units in Dallas. The chain’s largest outlet to date will be at the Spectrum Mall in Phoenix. Wingstop said JTP’s first unit opened last June; the next three are under construction,. WES JABLONSKI, executive vice president of business development for Wingstop, said, “Tracy and Jacqui are very experienced Wingstop operators. They had expressed an interest in moving to a major market that presented expansion opportunities, as the Dallas/Fort Worth market is already maxed out.”

Los Angeles-based CALIFORNIA PIZZA KITCHEN INC ., the 190-unit casual-dining chain announced that Tokyo-based multibrand operator WDI CORP. had agreed to open a minimum of 15 CPK units throughout Japan over the next 10 years and WDI’s first CPK would open this fall. RICK ROSENFIELD, co-founder and co-chief executive of California Pizza Kitchen said, “This new agreement with WDI is a wonderful opportunity for us. We have very successful restaurants in other parts of Asia and are excited about bringing the CPK brand to Japan.”

NELSON PELTZ, chairman of Arby’s parent TRIARC COS., was identified as the CRBL GROUP shareholder who approached that company making suggestions for boosting the value of its stock, thus prompting CBRL, part of the CRACKER BARREL and LOGAN’S ROADHOUSE brands, to reveal at the time that it was already considering such measures. MICHAEL WOODHOUSE, chief executive of CBRL, said that he preferred to disclose the unidentified stakeholder’s activity and CBRL’s own plan to consider restructuring alternatives than to engage in a time-consuming and distracting power struggle with the investor. At that time, Peltz was pressing WENDY’s INTERNATIONAL to divest is secondary operations and cut overhead, however, no connection was made between him and the CBRL situation.

Four franchisees (three who are first-time franchisees) signed deals with INTERNATIONAL DAIRY QUEEN for the opening of 21 DQ Grill & Chili locations in Florida and North Carolina over the next five years. MAD TREATS INC. will open five DQ Grill & Chill outlets in Wake County, NC; five units are scheduled to be launched by MICHAEL S. KULE in Palm Beach County, Fla.; POTARIS ENTERPRISES INC. will open five outlets in Pasco County, Fla.; and six branches will be opened by GRILL AND CHILL RESTAURANTS OF FLORIDA LLC slated to open in the Florida counties of Lake and Hernando.

An area development agreement was reached between CAMILLE’s SIDEWALK CAFÉ and franchisee FRANK KHADIVI for 10 units in Orange Country, Calif. The fast-casual chain, currently with 87 units, features wraps, deli sandwiches, grilled panini, flat-bread pizzas, soups and salads. Breakfast, lunch and dinner are served and they also offer catering.

After a watchdog group’s new study indicated that their cafeterias were serving French fries loaded with dangerous trans fats, foodservice contractors at hospitals and federal agencies have begun abandoning partially hydrogenated frying oils. In a published report, a spokeswoman for RESTAURANT ASSOCIATES MANAGED SERVICES said that its operations at the U. S. Department of Agriculture had accelerated a planned switch to trans-fat-free canola oil as a result of the study by the CENTER FOR SCIENCE IN THE PUBLIC INTEREST (CSPI). In addition, the UNIVERSITY OF PENNSYLVANIA’s hospital is among those that said they would adopt trans-fat-free frying oils in the wake of the CSPI study.

Additionally, MCDONALD’S CORP.’s global director of nutrition, CATHY KAPICA, confirmed that its “continually enhanced” testing methods had found that the chain’s fries contain one-third more trans fats than was previously believed.

In Beijing, China, MCDONALD’s CORP.’s operating division announced in China that its more than 740 restaurants use trans-fat free palm oil to make French fries, countering negative publicity that its U.S. chain has disclosed its fries have one-third more of the unhealthy fat than previously thought. Also, that country’s largest restaurant operator, YUM! RESTAURANTSCHINA, announced that its KFC chain uses a frying oil that is “very low” in trans fats.

With an expected debut early this month, six KRISPY KREME stores in the Houston and Beaumont, Texas areas are being converted to a new concept, JUMBLES DOUGH FACTORY AND COFFEE BAR. This comes after a mutual agreement was reached between KRISPY KREME DOUGHNUTS INC. and franchisee LONE STAR DOUGHNUTS LTD. to end their relationship and close all six of Lone Star’s Houston-area units by March 8. In a statement issued by the franchisor, all outstanding disputes and claims were settled by both parties including the dismissal of a lawsuit filed last summer by Lone Star against Krispy Kreme. STEVE PANAGOS, Krispy Kreme president and COO, said the company is still committed to the Houston area and plans to re-open stores there “at the appropriate time.” Lone Star Doughnuts, the ex-franchisee, said its Jumbles units’ expanded beverage offerings will include cappuccinos, frappuccinos, lattes and teas. Krispy Kreme still faces lawsuits from other franchisees, including two of its largest — 30-unit, Los Angeles-based GREAT CIRCLE FAMILY FOODS LLC and 25-unit Chicago-area operator SWEET TRADITIONS LLC. Also, the franchisor’s accounting practices and legal circumstances are still under investigation by federal authorities.

According to reports, a Krispy Kreme franchisee, WESTWARD DOUGH, operator of 15 shops in five Western states, would pay $10 million to buy 12 Krispy Kreme shops from another franchisee that filed for Chapter 11 bankruptcy protection last month and closed its other three locations. However, according to franchisor, KRISPY KREME DOUGHNUTS INC., other bids are expected in court for the assets of GLAZED INVESTMENTS LLC, the area developer for Colorado, Minnesota and Wisconsin, who filed bankruptcy seeking to shed all liens, claims and encumbrances. Even though Westward Dough agreed to purchase the Glazed Investments assets, there will be an opportunity for other qualifying bidders to buy them through a court-supervised process. Krispy Kreme Doughnuts, Inc., which owns a 97-percent stake in the Glazed group, said it would no longer hold a stake in Glazed Investments after its assets are sold. Late last year, another Krispy Kreme subsidiary and franchisee, Philadelphia region operator Freedom Rings LLC, filed for Chapter 11 protection.

STARBUCKS CORP. is now branching into movies after turning its coffeehouses into a major music sales channel. Shareholders were told by the company that its 10,500-unit chain would begin selling DVDs of “Akeelah and the Bee” later this year.

Mark Kalinowski, a New York stock analyst, said that unnamed sources indicated THE CHEESECAKE FACTORY plans to test a new Asian casual-dining concept, with a possible opening in California by year-end. During an investor call, THE CHEESECAKE FACTORY INC. acknowledged that it’s developing a new “broad-based Asian” casual-dining concept and hinted that it may pursue other new ventures and the Asian brand is slated to debut in the first half of 2007. Chairman and chief executive, DAVID OVERTON, indicated that the concept’s menu would offer a multinational mix of Asian fares with prices somewhat higher than Cheesecake Factory’s, whose average check is $17.

According to BIG BOY FRANCHISE MANAGEMENT LLC , a division of BIG BOY RESTAURANTS INTERNATIONAL, two franchisees, MIKE HASHIM, president of BBB RESTAURANTS of San Bernardino, Calif., and SUHAIL HASHIM, president of QSC CORP., had agreed to open 56 BOB’S BIG BOY restaurants over the next 10 years throughout Southern California. The Hashims’ first two units would open in May in Colton and in July in Signal Hill.

In a presentation to analysts, JACK SCHUESSLER, chief executive for WENDY’S INTERNATIONAL INC., said that his company is on track to spin off 15 percent to 18 percent of its Tim Horton’s business in March and divest the rest of the chain within the following nine to 18 months. There are also plans for the company to test breakfast in 2006 and roll it out in 2007, adding a projected $160,000 in sales per restaurant per year. Same-store sales in 2006 at Wendy’s namesake chain are expected to increase 3 percent to 4 percent as it introduces new products, such as four different Frescata deli sandwiches, and tests others, including Double Melt cheeseburgers and a 99-cent chicken sandwich. Wendy’s “3-Tiered, 3-Year Combo Plan” was disclosed in Schuessler’s presentation and that it is to raise samestore sales by more than 3 percent annually, cut costs by $40 million to $60 million and improve pretax profit by at least $100 million by the end of 2008.

A franchise pact was signed between PANERA BREAD and JOHN and RANDAL OUDT and BOB STEWART for openings of 15 bakery-cafes in San Antonio and Austin, Texas. Currently, the trio operates seven Baja Fresh locations in Dallas and Austin.

Notification from the SECURITIES AND EXCHANGE COMMISSION was given to RED ROBIN GOURMET BURGERS INC. that there will be a formal order of investigation related to the use of chartered aircraft and travel and entertainment expenses by MICHAEL J. SNYDER, Red Robin’s former chairman, president and chief executive. After an internal investigation revealed that the expenses and their documentation were inconsistent with company policies, Snyder, who later reimbursed the company $1.25 million, resigned last Aug. 11 and James McCloskey, chief financial officer, resigned the same day. In a separate statement, Red Robin said it will defend “vigorously” against a new class-action lawsuit in California Superior Court alleging the company’s failure to comply with the state’s wage and hour regulations.

BRINKER INTERNATIONAL, parent of Chili’s Grill & Bar said it had completed its sale of the 91-unit Corner Bakery Cafe brand to a subsidiary of upscale Italian dinner house chain IL FORNAIO (AMERICA) CORP. The proceeds of the sale would fund corporate expenses including its share repurchase program, which the company simultaneously expanded by $150 million, according to Brinker.

GREG BRENNEMAN , chairman and chief executive officer of BURGER KING CORP., announced in a statement that the chain plans to register with the Securities and Exchange Commission for an initial public stock offering. Citing “limitations imposed by U.S. securities law”, BK, the No. 2 burger chain, with an estimated 7,600 U.S. units, declined further comment. The chain is owned by a team of equity firms that includes TEXAS PACIFIC GROUP, BAIN CAPITAL and GOLDMAN SACHS PARTNERS.

Contract foodservice conglomerate, COMPASS GROUP PLC, said an internal probe had found “serious irregularities” in connection with contracts awarded to its EUREST SUPPORT SERVICES division by the United Nations. There were allegations that Eurest, or ESS, had improperly obtained a three-year, $62 million contract to feed U.N. peacekeepers in Liberia and last October, the U.N. suspended Compass after the allegations of contract bidding irregularities were exposed. According to Compass, which earlier fired two senior executives in connection with the matter, the 3-month-long probe, conducted by London-based law firm Freshfields and accounting firm Ernst & Young, found “issues in relation to behavior of a few individuals within ESS,” but none that extended “to other parts of ESS or to the wider Compass Group of companies”. Focus of the investigation was on relations between Eurest and an independent New York-based subcontractor, IHC SERVICES. IHC’s relationship with Eurest and the U.N. remains under investigation by the U.S. Congress, federal prosecutors and the U.N.

WACHOVIA SECURITIES has been hired by CBRL GROUP INC ., parent of the 524-unit Cracker Barrel and 156-unit Logan’s Roadhouse chains, to advise the company on “capital structure alternatives” or other means of boosting shareholders’ returns. CBRL said that it had been approached by a “significant” holder with suggestions for boosting the stock price.

Congress was given 30 business days to consider a District of Columbia Council approved measure to outlaw smoking in public places in the nation’s capital in a rare federal referendum on smoking. The controversial initiative automatically becomes law if Congress does nothing. After district Mayor ANTHONY WILLIAMS declined to veto it, the measure was forwarded to Congress. The measure was passed by the council by a 12-1 vote last Dec. 6, indicating it had sufficient votes to override a veto.

Following the filing of a lawsuit last month by IN-N-OUT BURGERS INC. in Los Angeles Superior Court, RICHARD BOYD was fired as a board member and vice president of In-N Out Burger amid an ongoing battle over control of the chain where Boyd was accused of fraud and embezzlement. Previously, he had filed a civil suit charging several company officials with breach of contract and defamation, including MARK TAYLOR, another In-N-Out vice president and board member. Also, Boyd accused Lynsi Martinez, Taylor’s sister-in-law and the 23-year-old heir to the family-owned company, of trying to wrest control from her ailing 86-year-old grandmother, In-N-Out president and co-founder ESTHER SNYDER, in order to embark on unbridled expansion of the 202-unit drive-thru chain. Company officials said in a statement that the board — which, other than Boyd, included only Taylor and Snyder — voted to remove Boyd “with cause.” He remains co-trustee, with Taylor, of the Snyder family’s lucrative trusts, which include about 65 percent of In-N Out’s stock. Snyder said in a deposition taken in January that she supported Boyd’s termination and removal as a trustee. Boyd’s attorney, PHILIP HELLER, said he planned to challenge the legality of the firing in the course of pending litigation in civil and probate court.

All 39 quick-service units of BURGERVILLE will switch to transfat-free canola oil according to owner, THE HOLLAND CO. Contained in partially hydrogenated oils, trans fat has been linked by medical authorities to tens of thousands of deaths each year from coronary heart disease, and the U.S. Food and Drug Administration now requires food packagers to list it on labels.

There is new competition on the horizon for Hooters. The first HUSTLER BAR & GRILLE is scheduled to open in Las Vegas this October. The new restaurant will feature loud music, sports on TV, “Hustler memorabilla without the pornography and servers known as the Hustler Hunnies. BRAD SALTZMAN, one licensee, said, “They will be like Hooters girls with a background in hospitality”.

BRANDED CONCEPT DEVELOPMENT will serve as project manager for the renovation of CHEVYS FRESH MEX in Times Square in Manhattan which is owned by REAL MEX RESTAURANTS, the largest full service, casual dining Mexican restaurant company in the United States. JOHN DRUSE, senior director of facilities/construction of Real Mex Restaurants said, “We look to Branded Concept Development, a company that has extensive knowledge of the Manhattan restaurant market, to invigorate our famous Times Square location”. BCD is an outsourced real estate, design and construction alternative for developing restaurant and retail concepts. 

For its 13-week fourth quarter ended Dec. 25, RUTH’S CHRIS STEAKHOUSE INC. recorded a 42.6-percent increase in earnings from a year earlier to $4 million. For the period, excluding hurricane-related costs, discontinued operations and loss on impairment, and adjusting interest expense, the company’s pro forma earnings was $5.1 million versus $4.2 million for the prior fourth quarter.

A 4.9-percent decrease in fourth-quarter profit was reported by IHOP CORP. on impairment and closure charges related to a restructuring. Operator and franchisor of 1,242 restaurants, IHOP’s quarterly per-share net income rose 1.9 percent from a year earlier and earned $10 million for the three months ended Dec. 31 versus $10.5 million a year earlier.

Fourth-quarter net income at LANDRY’S RESTAURANTS INC. plunged 70 percent from year-earlier results to $3.9 million, despite a 57.6-percent jump in operating earnings to $20 million, because interest expense grew to $11.4 million from $3.1 million in the same quarter last year.

First-quarter net income at JACK IN THE BOX INC. dipped to $25.2 million, from $25.4 million a year earlier, on stock option expensing and legal-settlement charges. For the quarter ended Jan. 22, per-share profit rose to 70 cents, versus 68 cents a year earlier, reflecting the company’s repurchase of about 1.4 million shares.

For the fourth quarter ended Jan. 1, CEC ENTERTAINMENT INC., operator of 522 Chuck E. Cheese’s restaurants, posted a 36.4-percent decline in earnings to $9.9 million on revenues that fell 4.7 percent to $164.1 million.

A profit of $6.3 million was posted by TEXAS ROADHOUSE INC ., operator and franchisor of 221 namesake restaurants, for the fourth quarter ended Dec. 27, versus a loss of $184,000, a year earlier.

Regulatory approval was granted to F&H ACQUISITION CORP ., which is jointly owned by NEWCASTLE PARTNERS LP AND STEEL PARTNERS II LP, for approval to complete its going-private acquisition of Wichita, Kan.-based FOX & HOUND RESTAURANT GROUP, operator of nearly 80 Fox and Hound and Bailey’s outlets. With the anti-trust clearance, F&H was allowed to complete a tender offer to buy all the restaurant company’s outstanding stock that F&H doesn’t already own for $16.30 per share.

For the year ended Dec. 26, AMERICAN RESTAURANT GROUP INC., parent of 88 Black Angus Steakhouses, said same-store sales fell 2.9 percent, but have improved the last two months.

A 5.5-percent dip in second-quarter earnings on a 4.1-percent rise in revenues to $694.4 million was posted by CBRL GROUP INC., operator of the 514 CRACKER BARREL OLD COUNTRY STORE restaurants and gift shops, and operator or franchisor of nearly 130 LOGAN’S ROADHOUSE units. For the quarter ended Jan. 27, net income was $30.8 million versus $32.6 million the year before.

Largely reflecting one-time charges, DOMINO’S PIZZA INC. reported a 48.8-percent surge in its fourth-quarter profit from a year earlier, to $40.2 million, or 59 cents per diluted share, a year-over-year comparison.

The operator and franchisor of 1,813 restaurants, APPLEBEE’S INTERNATIONAL INC., posted a 15.9-percent dip in fourth-quarter income from a year earlier to $20.5 million despite a 10.7-percent increase in total revenues to $300.2 million. For the four weeks ended Feb. 19, domestic same-store sales fell 1.5 percent at company-owned units as guest traffic for the period declined 5 percent.

An affiliate of private equity firm WELLSPRING CAPITAL MANAGEMENT LLC is purchasing CHECKERS DRIVE-IN RESTAURANTS INC., operator and franchisor of 793 restaurants under the Checkers and Rally’s Hamburgers brands for $15 per share, a transaction totaling about $188 million and is expected to close in the second quarter of 2006, pending regulatory and shareholder approval. According to the Tampa-based company, the acquisition agreement was approved by Checkers’ board of directors and by a special committee of its board that was formed last July to explore strategic alternatives for the restaurant operator.

WELLSPRING CAPITAL MANAGEMENT LLC agreed to pay $18.05 per share, or $375 million, for the 46-unit DAVE & BUSTER’S chain.

Although revenues dipped 0.1 percent to $243.4 million, DENNY’S CORP., operator or franchisor of 1,578 restaurants, narrowed its fourth-quarter loss, compared with year-earlier results. For the three months ended Dec. 28, Denny’s net loss was $4.5 million versus a loss of $14 million a year earlier.

Same-store sales of company-owned Denny’s rose 8.4 percent for the four weeks ended Jan. 25, helped by price increases to offset higher utility and labor costs.

Miami-based BURGER KING HOLDINGS INC. divulged revenue, profit and pre-IPO payout figures in a preliminary prospectus filed last month for its pending initial public stock offering and told securities regulators it intends to raise $400 million in the transaction. BK did not, however, state a proposed share price, IPO date or anticipated net proceeds. For the six months ended Dec. 31, Burger King said its unaudited earnings before interest; taxes, depreciation and amortization were $184 million up 27 from year-earlier results, while for the same period operating cash flow rose 69 percent to $105 million, net profit was up 8.9 percent to $49 million and revenues grew 5.3 percent to $1.02 billion.

The largest BURGER KING franchisee and owner of two other brands, CARROLS CORP., reported a 2.9-percent dip in annual earnings before interest, taxes, depreciation and amortization to $90.7 million for 2005 on revenues that rose 1.3 percent to $706.9 million. Revenues for Carrols’ Burger King fell 2.6 percent to $360.1 million, reflecting one fewer week in fiscal 2005 than in the prior year and the closing of 13 underperforming restaurants.

P .F. CHANG’S CHINA BISTRO INC. reported fourth quarter earnings of $9.3 million, or 34 cents per share, a 9-percent drop from the $10.2 million, or 38 cents per share, reported a year earlier The impact of hurricane-related closures, slower customer traffic and higher operating costs were blamed for the drop.

The operator and franchisor of 299 casual-dining restaurants, RED ROBIN GOURMET BURGERS INC., reported a 2.9-percent dip in fourth-quarter profits to $5.5 million, or 33 cents a share, as higher restaurant operating costs offset a 19.4-percent increase in total revenues to $116.5 million.

Compared with year-earlier results, BOB EVANS FARMS INC., operator of 583 namesake restaurants and 91 Mimi’s Cafe outlets, more than doubled its third-quarter earnings as revenues rose 4.9 percent to $399.5 million. Same-store sales for the four weeks ended Jan. 27 rose 4.1 percent for its Bob Evans family-restaurant chain. At the casual-dining Mimi’s Café chain, same-store sales increased 2.2 percent.

A 25-percent decline was reported by OUTBACK STEAKHOUSE INC., operator and franchisor of 1,298 restaurants in fourth-quarter net income to $28.1 million including hurricane and impairment charges that trimmed per-share earnings by 9 cents. For the Dec. 31-ended quarter, revenues rose 11.6 percent.

Despite a report of positive January same-store sales at five of its brands, Outback cautioned that the 2-percent up tick at its namesake chain did not reflect organic growth but rather an easy comparison with the preceding January, when sales were suppressed by severe winter weather. In January, same-store sales rose 7.4 percent at Carrabba’s Italian Grill, 9 percent at Fleming’s Prime Steakhouse and Wine Bar, 7.5 percent at Roy’s and 3.7 percent at Bonefish Grill.

A 41.7-percent drop in fourth-quarter income from a year earlier was reported by MCCORMICK & SCHMICK’S SEAFOOD RESTAURANTS INC. when its results included a $3 million, or 21 cents per share, tax benefit. The operator of 59 restaurants earned $4.5 million, or 31 cents a share, versus 55 cents a share, a year earlier for the quarter ended Dec. 31.

After a charge of $1.1 million, or 8 cents a share, for the write-down of three Atlanta restaurants and stock-based compensation expense of $653,000, or 5 cents a share, BUFFALO WILD WINGS INC., operator and franchisor of 375 Buffalo Wild Wings Grill & Bar, posted an 8-percent rise in fourth-quarter earnings to $2.6 million.

For the three months ended Dec. 30, ARAMARK CORP., the contract feeder and facilities manager based in Philadelphia reported a nearly 28.6-percent increase in first-quarter net income.

Global same store sales in January at MCDONALD’S CORP. rose 5.7 percent, led by a 9.7-percent boost at the chain’s 13,700 U.S. restaurants. Same-store sales dipped 0.5 percent in Europe however they rose 3.3 percent in the Asia/Pacific-Middle East-Africa region.

Blended same-store sales for the five weeks ended Feb. 1 at BRINKER INTERNATIONAL INC., operator and franchisor of 1,546 casual-dining restaurants, rose 6.7 percent. The company also raised its projection for third-quarter earnings by 3 cents.

For the four weeks ended Jan. 30, CKE RESTAURANTS INC. reported a 9.1-percent rise in blended same-store sales with gains of 12.4 percent at its Hardee’s restaurants and 5.8 percent at its Carl’s Jr. chain.

In fourth-quarter earnings, RARE HOSPITALITY INTERNATIONAL INC ., operator and franchisor of 301 restaurants, booked a 19.5-percent increase on total revenues that rose 16 percent to $246.9 million. For the quarter, ended Dec. 25, Rare’s net income was $13.1 million compared with $10.9 million a year earlier.

An initial public offering of $ 17 per share was made by MORTON’S RESTAURANT GROUP INC., owner-operator of 69 high-end Morton’s steakhouses and four upscale Bertolini’s Italian restaurants. That amount was up from it’s previously forecast range of $14 to $16.

A 3.3-percent dip in second-quarter earnings was posted by CHAMPPS ENTERTAINMENT INC., operator and franchisor of 66 casual-dining restaurants to $2.6 million on revenues that rose 2.5 percent to $57.8 million.

A Norwalk, Conn.-based hedge fund, PIRATE CAPITAL LLC, headed by THOMAS R. HUDSON JR., told securities regulators its affiliates had paid $58.8 million to acquire nearly 4.2 million shares, or 7 percent, of CKE RESTAURANTS INC., parent of the Hardee’s and Carl’s Jr. burger chains.

Fourth-quarter earnings were $4.1 million at RYAN’S RESTAURANTS INC., owner-operator of 338 restaurants, half its year-earlier net profit $8.2 million. Fourth-quarter sales were $196.9 million, versus $193.5 million for the year-earlier quarter.

For the period, ended Jan. 3, THE CHEESECAKE FACTORY posted a 17.3-percent increase in fourth-quarter net income to $23.4 million versus earnings of $19.9 million in the prior fourth quarter.

After accounting for stock-based compensation expenses, store closures and legal settlement costs, CALIFORNIA PIZZA KITCHEN INC. posted a 39-percent drop in fourth-quarter profits to $3.5 million. For the quarter ended Jan. 1, excluding those costs, the company’s earnings would have been $5.9 million compared with profits of $5.7 million in the same quarter a year earlier.

Fourth-quarter profit at YUM BRANDS INC., the parent of KFC, Taco Bell and Pizza Hut, fell 4 percent to $226 million on an accounting expense for employee stock options, though earnings per share were flat at 77 cents because of a change in the number of shares outstanding. The company said it would have earned 81 cents a share if not for the expense.

The operator of 25 casual-dining microbreweries, GORDON BIERSCH BREWERY RESTAURANT GROUP INC., has registered with securities regulators for an initial public offering to sell an unspecified number of shares for up to $50 million. Same-store sales rose 5.2 percent for the first nine months of 2005.

Fourth-quarter profits of $1.5 million were recorded by O’CHARLEY’S INC., operator or franchisor and 348 casual-dining restaurants, down from $6.5 million, or 29 cents, a year earlier. Total revenues rose 5.7 percent to $213.7 million.

For the four weeks ended Jan. 24, PANERA BREAD CO., operator and franchisor of 825 bakery-cafes, reported a 10.2-percent jump in systemwide same-store sales; 10.9 percent at corporate units and 9.9 percent at franchised restaurants. Panera’s net income for the quarter ended Dec 27 was $16.2 million.

First-quarter earnings at STARBUCKS CORP ., operator and licensor of 10,868 coffeehouses, showed a 20-percent jump on revenues that rose 22 percent. For the quarter ended Jan. 1, net income for Starbuck’s was $174.2 million compared with $144.7 million, a year earlier.

With adjustments for unusual items, WENDY’S INTERNATIONAL INC .’s pre-tax income for the fourth quarter fell 13.3 percent from a year earlier on flat revenues of $977 million, the company said. For the quarter ended Jan. 1, Wendy’s net income was $27 million compared with a net loss of $141.4 million a year earlier.

IHOP CORP. officials said they might acquire a second brand, and projected same-store sales growth of 2 percent to 4 percent for 2006. IHOP’s chief executive, JULIA STEWART, said it is testing a to-go program in Cincinnati that may be rolled out nationally this year, and that IHOP is considering acquiring another franchising or franchisable brand, though, outside the family-dining segment.

For the four weeks ended Jan. 22, PAPA JOHN’S INTERNATIONAL INC., operator and franchisor of 2,912 Papa John’s outlets, said domestic systemwide same-store sales had increased 3.4 percent, reflecting gains of 5.6 percent at corporate Papa John’s Pizza units and 2.8 percent at franchised outlets, compared with the same period last year.

Citing what they said were deteriorating operating performance and cash flow protection measures, Standard & Poor’s Ratings Services placed its credit ratings for UNO RESTAURANT HOLDINGS CORP. on “CreditWatch with negative implications”. S&P noted that since 2001, the Boston-based operator and franchisor of about 200 Uno Chicago Grill casual-dining pizza restaurants has recorded annual same-store sales that have been either flat or negative.

The Two-Way Street of Interview Etiquette

By: Bettie Biehn

Most job candidates know that, while not mandated or truly necessary, “thank you” notes are part of post-interview etiquette. And in this day and age, handwritten notes are nice but not needed. A timely email expressing your interest in the position for which you interviewed, a nice comment about the company and a sincere appreciation for your interviewer’s cogent questions, interview style or time taken says a lot about you as a person and your style as a professional.

The above suggestions assume (do I dare?) that you have prepared well for your interview, dressed professionally, and have conducted yourself with proper comportment befitting the position. While a later column may explore interviewing techniques, I will stick to the topic at hand for now.

My main reason for addressing this topic is not chiefly to remind candidates of proper etiquette throughout the interview process, but to remind them that their respect, courtesy and good manners may not be returned. As a job seeker myself right now, I have been amazed at the post-interview behavior of a number of companies with whom I sought work.

One company conducted a lengthy phone interview after reviewing my resume, and then asked me to come to company headquarters for a face-to-face discussion. The company HQ was not as geographically desirable as I would have liked, but the position sounded interesting, so off I went. At the end of this in-person interview, I was asked to return the following week for another interview with the senior level hiring manager and the company president. I dutifully wrote my thank you letter, and a time for the next meeting was decided. I completed this second interview (third, if you count the phone conversation), said my goodbyes, and went home, where I sent both email and handwritten notes to the two interviewers.

While I had reservations about the position after this last interview (did I really want to work in this industry? Was I comfortable with my prospective boss and her boss? Was the company philosophy and culture compatible with my job needs and wants?), I felt that I had invested a fair amount of time and effort in the process. So I waited to hear from them. And waited. And waited some more. Finally, after 4-6 weeks, I received a cryptic and dual message email from “someone in HR” basically saying “thank you for coming in to talk with us; we will review your materials to see if there is a fit”. What?? I wrote back, saying I was confused, and asking if the email was a rejection. The return email assured me that they were still in the “decision-making process.”

Well, you can probably guess…..I still have not heard about the results of this search. Even after calling my original interviewer and asking for closure after several months of waiting (with no response). Needless to say, I concluded early on that I did not want to work for this company. If they treated me that poorly after three interviews, during a time when they were in some respects trying to “woo” me as a candidate, how would I be treated as an employee?

I tell you this story because it is not the only experience like this that I’ve had. It is only the most outlandish. As a human resources professional, I understand that people get busy, that only candidates to be interviewed will be contacted, and that after a reasonable amount of time of not hearing, a candidate can conclude that the employer is not interested.

What I cannot understand is why employers forget their manners during the process by not keeping interviewed candidates in the loop, by failing to close the loop when a candidate is chosen by contacting the other candidates, and by failing to show the same respect and courtesy to candidates who have been interviewed. As many of us used to hear from our mothers, writing a thank you note takes a minute or two, but the good effects will last a long time. All it takes is a phone call from a prospective employer saying “so sorry, we chose another candidate.” While I know that many of us try to avoid these calls, the effects of not alerting non-chosen candidates is far more detrimental than the news that would be conveyed to them.

If you haven’t deduced this by now, the issue of courtesy, respect and good manners is a hot button for me. And if you’re a manager, a HR professional or anyone else involved in the selection, interview and hiring process on behalf of your company or organization, I urge you to put yourself in the shoes of your prospective employees, and let them know where they stand. Your behavior reflects not only on you as an individual, but also on your organization.

For all job seekers, I suggest that you be prepared for discourteous behavior on the part of employers. Maybe you’ll be pleasantly surprised when you get a response! I would also suggest that you continue behaving courteously. I’m firmly convinced that what goes around comes around, and your showing respect and good manners will pay off. Maybe not immediately, but eventually. And, besides, it’s just the right thing to do.

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 Executive Search is pleased to report that the demand for our service is strong.

The following list is a sampling of our current engagements.

1. CEO, QSR, Mid South
2. COO, Casual Dining, West Coast
3. COO, Family Dining, Southeast
4. COO, QSR, South
5. Sr. VP Marketing, West Coast
6. VP Business Development, Southeast
7. VP Development, New England/West Coast
8. Director of Field Marketing, Midwest
9. Director of Franchise Development, Northeast & Southeast
10. Director of Operations, Various

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.

In a transaction valued at $2.6 billion, the board of MERISTAR HOSPITALITY CORP. has approved an offer to be acquired by an affiliate of private investment and advisory firm Blackstone Group. MeriStar expects the transaction to close in the second quarter subject to shareholder approval. The first quarter sale of nine hotels and one golf and tennis club to Blackstone Group affiliates is not affected by this deal.

KIMPTON HOTELS & RESTAURANTS GROUP, LLC has obtained a management agreement for its second New York Hotel, the MUSE HOTEL in New York’s Times Square. The Muse will remain open during a $5-million enhancement project ensuring that the property reflects Kimpton’s brand style, service and amenities.

In Orlando, construction is underway on the SONESTA ORLANDO RESORT at Tierra del Sol and will be part of SONESTA HOTELS & RESORTS’ collection. Completion of the project is scheduled for late 2007 or early 2008. The $400 million project will include a condo hotel resort and a five-acre, multi-level waterpark. Roughly there will be 540 townhomes and 432 condominiums in 104 buildings at the property. Additionally, a 100,000 sq. ft. clubhouse, a full-service spa and restaurants are also underway.

CROWNE PLAZA HOTEL DE MEXICO , a newly opened 310-room hotel in the central part of Mexico City is owned and managed by Comercial Hotelera Mexicana under a license agreement with a company in the InterContinental Hotels Group. A variety of in-room amenities are featured including a custom music feature, custom temperature control and an in-room business center equipped with a computer and complimentary unlimited high-speed Internet access. Pillow selections are available to guests from an in-room pillow menu.

While restaurant openings may have slowed to a crawl, there are a number of hotel restaurants opening soon. The Richard Meier-designed Wolfgang Puck steakhouse, tentatively called CUT, is the highest profile of such restaurants. It is scheduled to open in the REGENT BEVERLY WILSHIRE HOTEL in early June. ROYALE, just west of Downtown L.A. opened in the old Wilshire Royale hotel featuring Chef Eric Ernest. TART opens in the FARMER’S DAUGHER HOTEL with Chef Claude Segal at the helm and WEST is scheduled to open this month atop the HOTEL ANGELENO and will feature Chef Josh Moulton. SIMON L.A., sister restaurant to chef Kerry Simon's spots in Las Vegas and Telluride, is expected to open in the SOFIETL. A restaurant tentatively named SEA is expected to replace Toppers, the Mexican spot on the 18th floor of Santa Monica's HUNTLEY HOTEL this summer.