It is Déjà vu; All Over Again!

Written by Jim Weber, Managing Partner, Dick Wray Executive Search

Gasoline prices are the buzz on the street.  That buzz  will continue as we move into the summer driving season.  In nominal terms, gasoline prices are at a record high.  I suspect that everyone who drives, knows the price of a gallon of gasoline at every service station within a mile of their home and office.  Today, no one will pass up bargain price if there is still room to top-off the tank.

To compensate, there is some evidence that the consumer may be adjusting their budgets by spending less time in restaurants, or more likely, by trading down to less expensive venues.  Commodity prices, also effected by the rising cost of oil, are closely followed by senior executives and purchasing managers with an eye toward pricing.  More than a few senior marketing executives have confided their suspicion of a corresponding weakness in sales.  

Success in this economy requires a keen understanding of the market forces on key resources.  Yet many folks are blind to the market for our most valuable resource, talent.   Labor has moved from a buyer’s market to a seller’s market.  Most people who want to work have jobs. Those good people that are between jobs face less time in the unemployment line.  People are becoming resistant to risk jumping ship, and we lost our first candidate to a counter offer this month. The market is hot, hot, hot, again.  Employers will be working harder to retain talented employees and will be forced to move faster when they find outstanding candidates.  They must be light on their feet to find and keep the best talent.

Companies with an ‘up or out’ human resources strategy, those that actively prune the bottom performing 10% are generally closer to the market for talent as they are constantly recruiting.  We can learn a lot by watching their success in building first rate teams that perform consistently over time.

These folks invest in human capital by building bench strength.  They continually interview for every occupational discipline regardless of the current needs.  They closely monitor the market for salary and benefits.   In other words, they know the labor market well enough that when a star candidate is presented, they act and they act fast.  You see, they know they must, otherwise that star will become an asset to their competition, making their job even more difficult.

This market requires rapid-response decision-making.  If one intends to compete to win, human resources planning must be at the top of the priority list.  Know the market.  Be bold, move smart, move fast!

Jim Weber, Chief Operating Officer
(800) 846-WRAY Office
jim.weber@dickwray.com

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

ROB LINDEMAN, president of MAX & ERMA ’S, announced that he has changed his mind about leaving the casual-dining chain to take an executive post with a Columbus-based development organization. Earlier, Lindeman had said he would be leaving to become senior vice president of operations for the Casto real estate organization but instead will remain president of the 102-unit Max & Erma’s. He said that he had never been dissatisfied or lacked confidence in Max & Erma’s and the board asked him to reconsider his decision to leave. Lindeman, who has held the post of president for about eight months, was working on a strategy to rebrand the 34-year-old chain while expanding it beyond its 11-state Midwestern and Southeastern base and said he was grateful for the opportunity to stay.

At the company’s annual meeting last month, DENNY’S CORP .’s board elected investment capital consultant and former Brinker International chief financial officer DEBRA SMITHART-OGLESBY chairman. Smithart-Oglesby, a Denny’s director since the late 1990s and former director of the Denver-based Noodles & Company chain, succeeds ROBERT MARKS, who is retiring as Denny’s chairman.

KIMPTON HOTEL AND RESTAURANT GROUP LLC’s president, MICHAEL DEPATIE, was named chief executive of the San Francisco-based operator of boutique hotels and upscale restaurants. He will succeed TOM LATOUR, who is retiring after 23 years with Kimpton but will remain as a consultant and director. Depatie is the third CEO in the company’s 25-year history. BILL KIMPTON was the first.

Industry veteran CHRIS CARROLL was named to the newly created position of executive vice president and chief marketing officer of COSÍ INC. Previously, Carroll served as senior vice president of Subway and director of worldwide marketing for the Subway Franchise Advertising Fund Trust in addition to holding positions at Pepsi Cola Co. and Burger King Corp.

In a move that will likely steer the chain’s marketing in a new direction, JOHN CYWINSKI has resigned as chief marketing officer of troubled APPLEBEE’S INTERNATIONAL INC., operator and franchisor of more than 1,800 Applebee’s restaurants. He said that he is leaving to spend more time with his family, commuting since 2001 from his home in Chicago to the company’s corporate headquarters in Overland Park, Kansas. Cywinski will stay on temporarily as a consultant. DAVE GOEBEL, president and chief operating officer, will fill Cywinski’s post in the interim. Cywinski remain there temporarily as a consultant.

JULIA STEWART, chief executive of IHOP CORP. was named to the additional post of chairman of the board, succeeding LARRY ALAN KAY, who remains on the board as lead director. Also president of the 1,252-unit breakfast specialty chain, Stewart, who was unanimously elected chairman, is credited with revitalizing it since she joined the company in 2001.

BILL VAN EPPS has been promoted by PAPA JOHN ’S INTERNATIONAL INC. to the newly created position of president, U.S.A. A 30-year veteran of the foodservice industry, Van Epps previously served as chief operations officer since 2004 and joined Papa John’s as international managing director in 2001.

O ’CHARLEY’S INC.’s new chief supply chain officer is LARRY TAYLOR. With more than 20 years of experience in restaurant supply chain management and operations, Taylor previously worked for more than four years with Carlson Cos. Inc., and also is a veteran of Taco Bell Corp., Burger King Inc. and McDonald’s global supplier, Perseco. Other management team additions to the company are COLIN DALY as senior corporate counseland MELISSA THOMPSON as vice president of corporate communications.

MATTHEW KIMBLE was named to the new post of vice president of human resources for MIMI'S CAFE, the 103–unit casual-dining chain owned by BOB EVANS FARMS INC. Prior to this appointment, Kimble previously was the Diedrich Coffee chain’s human-resources vice president for nine years and before that worked in HR management for the Thrifty and Payless drug store chains.

Restaurant industry veteran JOHN “JACK” R. WHIPPLE has been named the new president of the NATIONAL COUNCIL OF CHAIN RESTAURANTS. He will be responsible for setting the strategic direction for NCCR, a national trade association representing 40 of the nation’s largest multi-unit, multi-state chain restaurant companies.Whipple, a veteran of more than two decades with McDonald’s Corp., will replace TERRI DORT, who retired.

ROUND TABLE PIZZA INC ., operator and franchisor of about 500 counter-service and delivery pizza restaurants, named KEITH DAVISchief financial officer. J. Robert McCourt, president of Round Table, had been filling the CFO position since the retirement of Rebecca Parlette. Davis formerly served as assistant controller for nursing home operator Beverly Enterprises Inc. and before that worked in financial management posts at Landry’s Restaurants and Pizza Hut.

SCOTT D . LEGGE, was appointed by the FOODSERVICE CONSULTANTS SOCIETY INTERNATIONAL, or FCSI, as its new executive director, and will succeed DAVID L. DRAIN, who left in February. Legge, a past president of FCSI, is a 20-year foodservice veteran who has held numerous positions in operations management. According to the company, he will work with FCSI’s staff members and the FSA GROUP LLC management firm directing the worldwide society’s affairs.

STEVEN DAVIS has resigned as president of the LONG JOHN SILVER’S and A&W quick-service divisions of YUM! BRANDS INC. He has accepted a position as chief executive of BOB EVANS FARMS, Columbus-based parent of the BOB EVANS and MIMI’S CAFE chains and succeeds LARRY CORBIN, who had left retirement to serve as interim CEO following the resignation last August of Stewart Owens. Corbin remains on Bob Evans’ board.

RAY BLANCHETTE was named by T.G.I. Friday’s parent, CARLSON RESTAURANTS WORLDWIDE, as president and chief operating officer of its San Clemente, Calif.-based PICK UPSTIX division, which has approximately 120 Asian fast-casual branches in three states. He will replace Jeff D. Warne, who resigned in February to become president of the Nashville, Tenn.-based O’Charley’s chain. Blanchette, a 17-year Carlson veteran, previously was vice president of franchise operations for T.G.I. Friday’s USA.

PALM MANAGEMENT CORP .’s president and chief operating officer, ALFRED THIMM JR., is stepping down from his position to head up MARTINI PARK, a chain of upscale lounges, to be launched this October in Plano, Texas, followed by a second unit in Houston in November. Palm Management Corp., operator of THE PALM steakhouse group, said his duties were redistributed to other executives June 1. The company said that Palm’s Northeast regional director, BRUCE BOZZI JR., will become executive vice president, and WALTER MCCLURE, now senior VP of operations, will become executive VP and chief operating officer. Sharing responsibility for day-to-day operations, both Bozzi and McClure will report directly to co-owners WALLY GANZI and BRUCE BOZZI SR., who will be co-chief executives. Additionally, Ganzi also will take up the post of president, and Bozzi Sr. will be chairman. According to Thimm, “It’s been a very amiable transition, as much as it can be.” Thimm, who is Bozzi’s son-in-law, is assisting in the transition and will remain on the board of directors.

According to the company, ANDREW and JONATHAN SCHNIPPER, founders of HALE & HEARTY SOUPS, have left the 17-unit New York chain “to explore new ventures”. Andrew Schnipper served as chief executive; Jonathan was executive chef. Previously the president, SIMON JACOBS, is now the CEO and BRUCE CHABOT, who most recently worked with caterer Tentation Potel and Chabot, was hired by Hale & Hearty to take over as executive chef.

STEVE EASTERBROOK was promoted by MCDONALD ’S CORP. to president and chief executive of its United Kingdom division, replacing PETER BERESFORD. Most recently, Easterbrook, who joined the U.K. division in 1993 as an accountant, was its executive vice president and chief operating officer. According to the company, he will continue to lead its “Plan to Win” rejuvenation project, including a modernization of restaurant designs. Beresford has assumed a newly created position in Oak Brook as leader of strategic global brand development.

IAN EL-MOKADEM was appointed by COMPASS GROUP PLC , contract caterer, as chief executive of its United Kingdom and Ireland division. Prior to joining Compass, El-Mokadem was director of the telecommunications company Onetel. He replaces TREVOR BRIGGS, who was serving as its chief executive on an interim basis. Briggs will continue as the division’s commercial executive director and had taken on the extra duties when COMPASS GROUP AMERICAS’ division chief GARY GREEN returned to the United States after filling in as interim chief following the dismissal of PETER HARRIS. Harris was implicated in alleged illegal contract procurement activities related to a troop foodservice for the United Nations.

Beginning this month, DUNKIN ’ BRANDS now require franchisees of its DUNKIN’ DONUTS, BASKIN-ROBBINS and TOGO’S brands to participate in a federal pilot program that will enable employers to check the immigration status of new hires. Employers can verify a worker’s immigration status using online databases from the Social Security Administration and the U.S. Department of Homeland Security with the Basic Pilot Program. STEPHEN HORN, chief legal officer for Dunkin’ Brands said in a statement that the company chose to participate in the program “because we see it as a way to help our franchisees comply with the laws when the authenticity of their new hires’ credentials are difficult to discern.”

A donation of $2.5 million will be made over the next five years by STARBUCKS COFFEE CO. to the NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE. According to CEO JIM DONALD, Starbucks wants to “become an active partner” in the organization’s diversity efforts. He also said “At Starbucks we actively look for ways to support diverse organizations through volunteering, product donations and sponsorships. We believe our best opportunity to engage in the community is through these efforts.” The coffeehouse chain indicated it would consult with the NAACP on an annual basis about programs that would be supported with the cash and in-kind donations, but details of what Starbucks termed a “strategic alliance” were not disclosed.

All the equity of privately held CATALINA RESTAURANT GROUP, the Carlsbad-based parent company of the COCO’S BAKERY RESTAURANTS and CARROWS RESTAURANTS chains has been purchased by the U.S.-based subsidiary of ZENSHO CO. LTD., an operator of 1,859 restaurants in Japan. The newly formed ZENSHO AMERICA CORP. plans to strengthen and update the 114 Coco’s and 96 Carrows restaurants, which are located primarily in Western states

Catalina’s president, SAM BORGESE, will remain the group’s chief executive. Borgese said, “Zensho’s broad experience in providing quality food services globally and reputation for unparalleled customer service supports Catalina Restaurant Group’s mission, and this merger is opportunistically timed to support the growth plans of both . . .foodservice brands in 2006 and beyond.”

The Dallas Business Journal reported that PHIL ROMANO’S ROMANO CONCEPTS has plans to open a new concept this summer replacing the Dallas branch of New York’s landmark IL MULINO restaurant, which Romano and partner JOE PALLADINO are closing. A quote from Palladino indicated that the venture, which opened two years ago in what was believed to be Phil Romano’s first development of a restaurant concept not of his own creation, had failed to draw a steady clientele, possibly because of price resistance.

In a filing with securities regulators, BUCA INC. stated that it has dropped plans to sell its 11-unit VINNY T’S OF BOSTON Italian dinnerhouse chain which it bought in 2001 for $18 million, and will instead consider converting all or some of the restaurants to the company’s flagship BUCA DI BEPPO concept. Buca is the owner and operator of 93 Buca di Beppos.

Plans are being made by RAISING CANE’S CHICKEN FINGERS, a 40-unit quick-service chain based in Baton Rouge, La., to expand in Colorado, Ohio, Oklahoma, Georgia, Louisiana, Nevada, Nebraska, Mississippi which would double the chain’s number of restaurants. Raising Cane’s first franchisee, TIMOTHY McCARTHY SR. of RCO LTD., agreed to open an outlet later this year in Ohio and currently operates two branches near the campus of Ohio State University. According to TODD GRAVES, Raising Cane’s CEO, the former chief executive of Buca Corp., JOE MICATROTTO, has also signed on as a franchisee.

In a move that would expand the grill-buffet system by 15 percent, several franchisees of the 300-plus-unit SIZZLER chain have pledged to open a total of 26 restaurants. A Denny’s franchisee, MITCHELL FAMILY PROPERTIES LLC, is scheduled to open its first Sizzler, in Springdale, Ark., the first of its three planned locations. SIZZLING PLATTER of Salt Lake City, the brand’s original franchisee, has plans to open six new units over the next two years. Another large franchisee, BMW MANAGEMENT, is scheduled to open four Sizzlers in Central California. In the Las Vegas market this year, WITMAN’S FOOD LLC agreed to open its fourth branch and has plans for two additional restaurants. KENNEDY BIG SKY VENTURES LLC, DOLPHIN STREET CORP., and U&S CORP. are other franchisees with plans for expansion.

According to poll results released by TECHNOMIC INC., a foodservice researcher, one in every five consumers feeling the pinch of increased gas prices has reacted by cutting back on the number of courses ordered at restaurants. Technomic Inc. said that diners also are economizing by ordering less expensive entrees, fewer alcoholic beverages and more takeout. Additionally, the company noted consumers’ tendency to curtail their dining in full-service restaurants and increase their patronage of quick-service places.

A new round of private-equity financing from current stockholders and new investor AMERICAN SECURITIES CAPITAL PARTNERS has been completed by POTBELLY SANDWICH WORKS, operator and franchisor of 100 sandwich shops in which American Securities provided $30 million and existing stockholders $28 million. Additionally, they also made several executive appointments. American Securities’ managing director, GLENN KAUFMAN, joined the Potbelly board. The company named ARTHUR RUBINFELD executive vice president of corporate strategy and chief development officer and JAYSON TIPP was appointed vice president of store development and analytics. Both Rubinfeld and Tipp are former Starbucks Corp. executives. Two other new vice presidents include BILL SLEETH, Emmy-winning former TV writer, for store design, and DAN FOGARTY, a Chipotle Mexican Grill veteran, for marketing. Potbelly’s chief executive and chairman, BRYANT KEIL, said “The reinvestment shows that our investors continue to believe in what we are building”.

Last month, restaurant consultant and former executive vice president of restaurant development and marketing for the WYNN LAS VEGAS resort, ELIZABETH BLAU, was named 2006 GOLD PLATE AWARD winner by the INTERNATIONAL FOODSERVICE MANUFACTURERS ASSOCIATION at its annual Gold & Silver Plate Celebration held at the Sheraton Chicago Hotel. Blau who was selected for the IFMA honor from among the other 2006 Silver Plate Award winners, also worked with Las Vegas resort pioneer Steve Wynn in developing the dining attractions at the landmark Bellagio property. Silver Plate recipients included Craig C. Culver, CEO and co-founder of Culver Franchising Systems Inc., in the chain fast-service category; Ron Ehrhardt, director of food services for Prudential Financial, in business & industry; David Goronkin, president and CEO of Famous Dave’s of America, for chain full-service; Bob Kinkead, chef-owner of Kinkead’s and Colvin Run Tavern, for independent restaurants; Beverly L. Girard, director of food and nutrition services for the school board of Sarasota County, Fla., in elementary and secondary schools; Ted A. Mayer, executive director of Harvard University Dining Services, in colleges & universities; Sister Alice Marie Quinn, program director for St. Vincent Senior Citizen Nutrition Program, for specialty foodservices; and Ron Rech, director of food & nutrition services of Resurrection Medical/Holy Family Medical Center, for health care.

Stock prices soared last month at MAIN STREET RESTAURANT GROUP INC . after it had agreed to be acquired by BRIAD MAIN STREET INC., a wholly owned subsidiary of THE BRIAD GROUP, for $6.40 per share in cash. Main Street Restaurant Group Inc. is the largest T.G.I. Friday’s franchisee with 54 units and is an operator of the Bamboo Club Asian Bistro, Redfish Seafood Grill and Bar and Alice Cooper’s town restaurant concepts. Briard Group, led by BRADFORD HONIGFELD, who owns approximately 2.2 million shares of Main Street’s common stock, is an 18-unit T.G.I. Friday’s franchisee and operator of more than 50 franchised Wendy’s. According to Main Street, the deal is subject to a minimum tender of 90 percent of its outstanding shares, after which the company would become a wholly owned subsidiary of the privately held Briad Group.

Steak and Ale and Brinker International Inc.’s founder, NORMAN BRINKER, along with his wife, TONI, donated $1 million to establish the INSTITUTE FOR HOSPITALITY AND RESTAURANT MANAGEMENT at Southern Methodist University’s Cox School of Business. Some of the members of IHRM’s advisory board include the chairman of Brinker International, Doug Brooks, executive vice president of the American Hotel & Lodging Association, Marlene Colucci; Robert Dedman Jr., chairman of ClubCorp International Inc.; Alice Elliot, founder and CEO of the Elliot Group LLC; Tim Gannon, co-founder and senior VP of Outback Steakhouse Inc.; the chairman and CEO of Darden Restaurants Inc., Clarence Otis; H. Ross Perot Jr., president and CEO of Perot Systems Corp.; Steven Reinemund, chairman and CEO of PepsiCo Inc.; and Phil Romano, president of Romano Concepts. In the program, continuing-education certificates are offered to people in their late 30s and early 40s looking to make mid-career changes or move into management.

Based in Golden, Colorado, the 44-unit chain, GOOD TIMES RESTAURANTS , said it would add 10 Good Times Burgers & Frozen Custard outlets by year-end in Colorado, Wyoming, North Dakota and Montana. The company said that four of the units will be owned by the company, six will be franchised, and some will be co-branded with the TACO JOHN’S chain concept.

RAVING BRANDS, a franchisor of 516 restaurants under seven different brands, including the 294-unit Moe’s Southwest Grill and 125-unit Planet Smoothie chains has named STEPHEN M. LAMASTRA as its new president and completed a $24 million recapitalization secured by franchising assets according to a source familiar with the company. The spokesman also said that founder and chief executive MARTIN SPROCK, gave Lamastra, the former senior executive of Ritz Camera Centers, the day-to-day responsibilities of the company. The recapitalization is through WELLS FARGO COMMERCIAL CAPITAL and will be used for development. Additionally, Raving Brands announced that it plans to acquire a stake in the two-unit FLYING BISCUIT CAFE from DELIA CHAMPION, the Atlanta brand’s chef-founder, and would help franchise an intended 100 branches by 2008.

A franchise development deal has been executed by BRUEGGER ’S ENTERPRISES INC for five planned units in Anchorage and Fairbanks, Alaska, scheduled to open by 2010. ALASKA BAGEL ENTERPRISES, the franchisee, intends to make the Bruegger’s brand’s Alaskan debut by launching a Fairbanks branch by early fall.

According to the company, BURGER KING HOLDINGS INC., the operator and franchisor of nearly 11,400 Burger King restaurants, it priced its initial public offering of 25 million shares at $17 per share last month when it began trading on the New York Stock Exchange, under the symbol “BKC”. The IPO is expected to yield net proceeds of $393 million. The money will be used to repay $350 million of outstanding debt related to its senior secured credit facility said the company. It had helped fund a $367 million cash dividend that BK paid to its owners in February. Burger King will remain majority-owned by TEXAS PACIFIC GROUP, BAIN CAPITAL PARTNERS and the GOLDMAN SACHS FUNDS following the offering.

According to JEFF MILLER, their chief executive, LEE ’S FAMOUS RECIPES INC., franchisor of 150 LEE’S FAMOUS RECIPE CHICKEN units, has acquired Atlanta-based MRS. WINNER’S CHICKEN & BISCUITS, which has 115 restaurants in five states. The 2005 merger of former parent RTM Group with Arby’s parent Triarc Cos. Inc. left Mrs. Winner’s orphaned.

The latest research indicates that pizza chains outrank burger concepts in a new rating of customer satisfaction levels, with quick-service choices improving their overall score by 1.3 percent to 77 out of 100 index points. Once again PAPA JOHN’S PIZZA is at the top of the fast-food list in the latest UNIVERSITY OF MICHIGAN AMERICAN CUSTOMER SATISFACTION INDEX, up 1.3 percent to a score of 79. Ratings for LITTLE CAESARS pizza rose by 4.1 percent to a score of 77, and DOMINO’S PIZZA climbed 5.6 percent to a 75 index rating. Included for the first time was STARBUCKS COFFEE who debuted with a 77. BURGER KING, KFC and TACO BELL tied at 70, ahead of MCDONALD’S at 63, though that was up 1.6 percent from last year.

Under the proposed settlement of a class-action lawsuit filed against KRISPY KREME DOUGHNUTS INC. on March 3, 2005 by participants in its retirement savings, profit sharing and stock ownership plans, one of the insurers of the doughnut company’s will pay out $4.75 million in settlements. Krispy Kreme said in a statement that it and the individuals named in the suit “deny any and all wrongdoing and would pay no money in the settlement.” Former chief executive SCOTT LIVENGOOD, former board member JACK MCALEER, former chief financial officer RANDY CASSTEVENS and current CFO MICHAEL PHALEN were the other defendants named in the suit. Allegations in the suit said that Krispy Kreme executives failed to provide “complete and accurate information” regarding Krispy Kreme stock and therefore caused the loss of millions of dollars and also claimed that company executives should have sold the company’s stock from the plans when the investment became “imprudent.” If the settlement is finalized, Krispy Kreme said it would merge its profit sharing plan into the 401(k) retirement plan, in addition to granting the cash payment by its insurer.

Rights for a Dubai-based group to develop 75 restaurants in 13 Middle Eastern countries were granted by CONSOLIDATED RESTAURANT OPERATIONS INC., parent of such brands as Spaghetti Warehouse, El Chico and Cool River. SALEH BIN LAHEJ GROUP would open units of Consolidated’s EL CHICO, CANTINA LAREDO and III FORKS STEAKHOUSE brands under the franchise deal. In a prepared statement, Consolidated’s chairman, GENE STREET, said “Both CRO and the Saleh Bin Lahej Group believe our Mexican cuisine will be extremely popular in these countries” which include Egypt, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Bahrain.

Last month about 360 people reported becoming ill after eating at BRAVO CUCINA ITALIANA in Lansing, Michigan. After the outbreak, the restaurant closed its doors immediately while employees cleaned the premises and threw out all food and local health officials are investigating Bravo Cucina which is owned by BRAVO DEVELOPMENT INC. of Columbus, Ohio.

BOBBY WILLIAMS , a partner of LIZARD’S THICKET, a 12-unitfamily-dining chain based in Columbia, SC, has gone into partnership with his son-in-law, the former sous chef at Chez Fonfon in Birmingham, MIKE DAVIS, to open TERRA in the city’s Brookwood Village neighborhood. Terra will feature regional ingredients with a Mediterranean focus and will replace the 10-year-old Mangia! Mangia!, a Northern Italian-theme concept. Davis, a Johnson & Wales alumnus, worked with noted New Orleans chef Susan Spicer for four years before joining the widely known chef-operator Frank Stitt at Chez Fonfon.

A multi-unit development deal has been signed by DESERT MOON HOLDINGS CORP. in Valley Cottage, NY for deals for the Orlando and Fort Lauderdale, Fla., markets. They are the operator and franchisor of 19 DESERT MOON FRESH MEXICAN GRILLES in eight states. CORONA BROS. MANAGEMENT based in Windemere, Fla. and presently holds the rights for five units in Orlando and MV GRAPHICS, based in Scotch Plans, N.J., has obtained rights for four stores in Fort Lauderdale.

DENNIS BERKOWITZ, veteran California restaurateur, has opened his first out-of-state venture in Spokie, Ill due to rising costs in his home market. The 284-seat BILLY BERK’S will be a variation of his 14-unit, South San Francisco, Calif., company’s Max’s Opera Cafe, which features singing servers and cost $2.3 million to develop.

A $50 million sale-leaseback for 34 locations was completed by BURGER KING franchisee, SIMMONDS RESTAURANT MANAGEMENT , who has 70 units in Nebraska and Iowa. According to chief executive, MICHAEL SIMMONDS, he timed the recapitalization to take advantage of low capital rates and to free up assets previously tied up in real estate for investment in other brands and said he had not yet decided what his future investments would be.

With their recent acquisition of GOLDEN COLLAR, a foodservice company based in Beijing, ARAMARK CORP. ,a contract foodservice company, has increased its presence in China. According to the president of Aramark International, RAVI SALIGRAM, this acquisition will allow Aramark to “pursue new business opportunities within the health care, business and sports and entertainment sectors”. As a provider of foodservice to more than 60 clients in four major Chinese cities, Golden Collar holds the accounts for such high-profile events as the Chinese FIA Formula One World Championship Round at the Shanghai International Circuit, which last year was attended by more than 200,000 auto racing fans.

In its first large expansion move in two years, KRISPY KREME DOUGHNUTS INC ., awarded Middle East development rights to the AMERICANA GROUP, a food-foodservice-retail conglomerate that operates KFC, Pizza Hut and Hardee’s outlets. According to Krispy Kreme, Americana, who is based in Kuwaiti, agreed to open as many as 100 Krispy Kreme outlets in the next five years, generates about $1 billion in annual sales from more than 700 locations in 11 Middle Eastern countries. The first Krispy Kreme in the Middle East, wholly owned by Americana, is scheduled to open this fall in Kuwait, followed by units in Egypt, Saudi Arabia and the United Arab Emirates.

A settlement between company officials and former vice president RICHARD BOYD has ended the bitter legal battle between I N-N-OUT BURGERS INC. insiders. Subject to probate court approval, under the agreement, Boyd will not resume a role with the iconic drive thru chain and was removed permanently as co-trustee of the founding family’s trusts, which hold a majority of In-N-Out’s stock. Terms of the agreement, however, were not released. Over the past six months, in dueling lawsuits, LYNSI MARTINEZ, the 23-year-old heir to the family trusts, was accused by Boyd of trying to take control of the burger chain from her 86-year-old grandmother ESTHER SNYDER, In-N-Out’s president and co-founder. Vice president and co-trustee MARK TAYLOR was also accused of misusing company funds for personal purposes. In a counter suit, company officials accused Boyd of fraud and embezzlement, and fired him. Both sides denied all charges.

A company which tracks human-resources practices, PEOPLE REPORT, surveyed 100 client companies for the firm’s 2005 year-end report and said that last year, average turnover for foodservice managers edged up a few points to 27 percent as turnover of hourly workers rose by 4 percentage points to 104 percent. JONI THOMAS DOOLIN, People Report CEO, predicts retention of employees will continue to challenge the industry as unemployment falls and competition increases.

According to an article in the New York Post, BENIHANA INC.’s founder, ROCKY AOKI, is suing four of his six children in a New York state court. In his suit, Aoki alleges alleging that they have attempted to take over his personal wealth through their control of BENIHANA OF TOKYO. It was reported that KEIKO ONO, Aoki’s third wife and the former Miss Tokyo, plays in the battle because Aoki’s children fear her power to block their inheritance. Approximately one third of Benihana Inc. is owned by the Aoki family through Benihana of Tokyo.

The 16 th annual JAMES BEARD AWARDS named Thomas Keller’s the FRENCH LAUNDRY in Yountville, Calif. as the country’s “outstanding restaurant” and COREY LEE, its chef de cuisine, was named “Rising Star.” ALFRED PORTALE of GOTHAM BAR & GRILL in New York City won the outstanding chef award. The best new restaurant was presented to THE MODERN, another New York restaurant. The outstanding wine service award was won by AUREOLE, Las Vegas wine director, DANIEL JOHNNES, of the DINEX GROUP, which runs chef-restaurateur DANIEL BOULUD’s restaurants, won the award for outstanding wine and spirits professional. Additionally, Boulud, who runs DANIEL, CAFÉ BOULUD and DB BISTRO MODERNE in New York, DB BRASSERIE in Las Vegas and CAFÉ BOULUD in Palm Beach, Fla., received the “outstanding restaurateur” award. The outstanding overall service award was given to GARY DANKO restaurant in San Francisco. The award for best pastry chef went to JOHNNY IUZZINI of JEAN GEORGES in New York.

In a filing with securities regulators, EL POLLO LOCO HOLDINGS INC , parent of the 340-unit grilled-chicken chain, filed for an initial public offering of common stock with expectations that it will raise up to $135 million. While no date or share price for the offering was stated, the Irvine company said net proceeds would be used to retire debt and terminate a management contract held by TRIMARAN CAPITAL PARTNERS, the principal shareholder, who purchased the fast-casual chicken chain last year from American Securities Capital Partners LP for $415 million.

Co-founded by DEAN YOUNG, the “Blondie” newspaper cartoonist, DAGWOOD’S SANDWICH SHOPPES LLC announced plans for openings of shops in Florida and Louisiana late this summer. A former marketing executive with the Popeye’s fried chicken chain, LAMAR BERRY, is a co-founder of the Dagwood’s concept and GEOFFREY RHODE of New Orleans serves as executive chef. The concept is based on the towering Dagwood sandwiches made popular in the Blondie comic strips created by Young’s father, Chick Young and debuted in newspapers in 1930.

Two new franchise groups have signed development agreements with BRINKER INTERNATIONAL INC . With plans for CHILI’S GRILL & BAR’s first expansion into Montana, one of the last 50 states without a Chili’s, SHOOT THE MOON LLC of Great Falls, Mont. acquired a franchise territory in Washington, Idaho and Montana, including seven company-owned Chili’s restaurants in Washington and Idaho. In Salt Lake City, BIG HORN ASSOCIATES bought one corporate-owned restaurant in Cheyenne, Wyo., and committed to develop four more Chili’s in the surrounding area.

In Maine last month, f our WENDY’S restaurants were converted to the format of sister brand Tim Hortons by franchisee TIM HORTONS NEW ENGLAND, who has eight branches of the doughnut chain in the state. A WENDY’S INTERNATIONAL spokesman was quoted as saying, “There are no plans to convert other Wendy's to Tim Hortons. This was an isolated situation.”

In a regulatory filing last month, the second-largest shareholder of ARAMARK CORP. said that the $32 per-share going-private buyout offer from an investment group led by Aramark’s chief executive was “grossly inadequate.” The New York-based investment firm that along with its affiliates owns 9.4 million shares, or 7.8 percent, of Aramark’s stock, EMINENCE CAPITAL LLC. said it would not support a transaction “anywhere near that price” in a letter to Aramark’s board of directors. Eminence also wrote that if Aramark’s board was not able to negotiate an “appropriate transaction,” it should “pursue a leveraged recapitalization through a large Dutch-auction tender offer to repurchase Aramark’s shares at $32 per share.” It is Eminence’s belief that Aramark, one of the largest foodservice management companies, is worth at least $40 per share, which would represent a “conservative” buyout price of 8.5 times the company’s earnings before interest, tax, depreciation and amortization. The $32 per-share buyout offer last month was from chairman and chief executive JOSEPH NEUBAUER, who himself owns a 16.6-percent stake in the company. Along with $6.25 billion in debt financing arranged by GOLDMAN SACHS CREDIT PARTNERS LP and J.P. MORGAN SECURITIES INC., the $5.8 billion buyout would be financed though equity from the funds of GS CAPITAL PARTNERS, J.P. MORGAN PARTNERS, THOMAS H. LEE PARTNERS and WARBURG PINCUS LLC.

MERRILL LYNCH GLOBAL PRIVATE EQUITY , an arm of New York-based investment bank MERRILL LYNCH & CO. INC., has completed its acquisition of NPC INTERNATIONAL INC., whose 790 PIZZA HUT restaurants and delivery outlets make it that chain’s largest franchisee. The PIZZA HUT INC. subsidiary of Louisville, Ky.-based YUM! BRANDS INC. approved the transaction. TROY COOK, NPC’s chief financial officer, said that O. GENE BICKNELL, founder and chairman of the company, would step aside after the transaction closed and JIM SCHWARTZ, NPC’s chief executive officer, would assume the dual roles of chairman and CEO. A plan under Merrill Lynch’s ownership would focus on NPC’s return to new-unit expansion, which the franchisee hadn’t pursued since it went private in 2001 according to previously published reports.

A merger has been finalized between THE RESTAURANT CO ., franchisor and operator of 488 PERKINS Restaurant & Bakery outlets and the 138-unit MARIE CALLENDER'S Restaurant & Bakery chain. The former CEO of Morton’s Restaurant Group, ALLEN BERNSTEIN, was named chairman of the combined entities, TRC HOLDINGS LLC. TRC, Marie Callendar’s and the new TRC Holdings LLC are all holdings of the New York-based private equity firm, Castle Harlan. TRC said that JOSEPH TRUNGALE, TRC president and CEO, will retain those same titles with the combined company, and PHILLIP RATNER will remain president and CEO of Marie Callender’s. The merger involved a stock-for-stock exchange valued at around $440 million and included the repayment of Marie Callender's debt with a new $100 million facility secured by nearly all assets of the combined businesses, whose revolving credit line was increased from $25 million to $40 million.

POPEYES CHICKEN & BISCUITS’ franchisor, AFC ENTERPRISES INC has bought 13 outlets in Tennessee from SHELTON DEVELOPMENT CO., an Alexandria, La.-based franchisee. While terms were not disclosed, AFC said the move expands its test market fleet to about 70 restaurants. According to AFC, Shelton CEO MIKE SHELTON, a former president of the Popeye’s International Franchise Association who will continue as a Popeye’s developer, sold 11 units in Memphis and two in Nashville,

UP THE CREEK RESTAURANTS OF AMERICA , operator and franchisor of 13 casual-dining UP THE CREEK FISH CAMP & GRILL units have executed two multi-unit deals that would include expansion in Florida’s Gulf Coast and the Dakotas. CEO of Up The Creek, BILL PALMER, who also is founder of Applebee’s Neighborhood Grill & Bar and operator of 40 Applebee’s in greater Atlanta, said the Florida deal is with Cicero, Ind.-based JC AMERICAN, headed by ALLEN MUSIKAN-TOW, former chairman of Independence, Ohio-based Apple American. MYRON THOMPSON and ABE SAKAK are the new Dakota franchisees for Up The Creek. Thompson is CEO and Sakak is chief operating officer.

Three of its 50 restaurants were closed by CHAMPPS ENTERTAINMENT INC. One had been open for only 10 months and none of the three had ever been profitable. Champps said the closures will cost the company $3 million to $4 million and added that it could close two more sites. The Littleton based company also is franchisor of 13 other Champps locations.

With a deal already signed to open franchised units in 65 L.A. FITNESS SPORTS CLUB outlets by year-end, KAHALA CORP. is launching a new quick-service juice bar concept called NRGIZE LIFESTYLE CAFE. According to Kahala vice president MICHAEL REAGAN, the juice bar will offer blended drinks, supplements, nutritional snacks and vitamins. Kahala will be the exclusive food-and-beverage provider for L.A. Fitness, which owns more than 140 sports clubs and has another 31 under construction.

Facing of allegations that registered sex offenders were hired by several dozen franchised restaurants, including some implicated in on-premises offenses against children, MCDONALD’S CORP., is defending its practice of letting franchisees set their own hiring policies. A television station in Nashville, Tenn., WTFV, aired a report citing 53 instances where franchisees had hired persons listed on the offender registries of Alaska, Delaware, Indiana, Louisiana or Tennessee. The station said that it investigated for three months before it reported that it had tracked down some registrants who were charged with offenses against co-workers and children inside McDonald’s restaurants. The NATIONAL FOUNDATION TO PREVENT CHILD SEXUAL ABUSE, called for a nationwide boycott of McDonald’s as a result of the report. McDonald’s company officials said that they do not knowingly hire registered sex offenders and they require job applicants to disclose any prior sex offenses or other felonies. McDonald’s also said that franchisees, as “independent business owners, set their own employment policies.” McDonald’s added that it is investigating the allegations.

An agreement was made by COMPASS GROUP PLC, theBritish contract giant to sell some of the basics of its RESTAURANT ASSOCIATES/PATINA GROUP subsidiary to RA chief executive NICK VALENTI, Patina founder and chef JOACHIM SPLICHAL, and a Tokyo-based foodservice conglomerate, SHIDAX CORP. According to Valenti, the three will purchase Restaurant Associates’ restaurants, a number of other East Coast foodservice outlets and all of Los Angeles-based Patina Group, which includes high-end restaurants and a contract foodservice business that specialize in cultural places. All of RA’s business-and-industry and catering contracts in New York will be taken over by Compass and they will retain the “Restaurant Associates” name. In addition, Compass will retain a 30-percent stake in the yet-to-be named company being formed by Valenti, Splichal and Shidax. The Chicago-based LEVY ORGANIZATION division of Compass will take over all of RA’s sports and entertainment business.

In Newport News, Va., Carla Patterson and her son Ricky Patterson were found guilty of one count each of extortion in a food tampering case involving the 539-unit Cracker Barrel Old Country Store arm of Lebanon, Tenn.-based CBRL GROUP INC. The pair, who were charged in May 2004 with conspiracy to commit a felony after Carla Patterson said she found a mouse in her soup while dining at a local Cracker Barrel on Mother’s Day, face one-year jail terms and fines of $2,500 each.

During WENDY’S shareholder’s meeting last month, the new chairman JAMES PICKETT and interim chief executive KARRI ANDERSON attempted to reassure shareholders that the No. 3 burger chain will turn around. In his opening remarks, Pickett said, “The company has struggled over the past year. I intend to guide the company’s board with (late founder) Dave (Thomas’) values, and most, importantly, to focus on profits.” Anderson, who was promoted from chief financial officer to chief executive, also spoke to shareholders and pledged that Wendy’s would increase faltering sales by strengthening core products and increasing rollouts of new ones while improving marketing, recommitting to service excellence and focusing on leadership.

RED HOT & BLUE (RHB), with 14 units, is operating in a casual-dining outlet at RFK Stadium as well as several other Major League ballparks around the country. Debuting at the ball club’s home opener in April, RHB is a 1,000-square-foot operation along the right-field line that seats 100 and officially is called the Red Hot & Blue BBQ Porch. ROBERT FRIEDMAN, president of RHB says sales at RFK Stadium are red hot and that service would be the same there as it is at any other Red Hot & Blue branch. He also said, “Since we’re well-known in the market, we didn’t want there to be a disconnect with what our customers get in the restaurants and what they get in the ballpark”. One of four concessions stands at RFK Stadium, RHB was designed in a cafeteria style with picnic tables and benches and is operated in partnership with Philadelphia-based Aramark Corp.

STARBUCKS , the company that sells 4 million coffee drinks daily in the United States is anxious to broaden its brand. The king of coffee is aiming to rank among the top trend setters before the decade is out. In a USA TODAY article written by Bruce Horovitz, the sociology professor at the University of Maryland, George Ritzer, said “Call it the Starbuckization of society. Starbucks has created the image that they’re cutting edge.” Starbucks chairman, Howard Schultz, says “It amazes all of us how we’ve become part of popular culture. Our customers have given us permission to extend the experience.” Part of that experience includes Starbucks Entertainment, a company formed two years ago and employs 100 people. There are talks with musicians about promotional links with CDs including stars like Mick Jagger, Bono, Prince and Chris Martin. Ken Lombard, division president says he hears from record labels, film studios and publishers on a daily basis. Since they went public in 1992, the company’s stock is up approximately 5.8% with 172 straight months of same-store sales growth. In addition to their film effort, Starbucks will sell and possibly publish books. They are also testing a few sites to perhaps make stores “digital fillup” stations for entertainment downloads according to Schultz. Opening an average of five stores every day worldwide, they currently have 7,970 U.S. stores in addition to 3,275 stores in other parts of the world. Starbucks has changed what we pay for coffee, they have changed coffee tastes, what we eat, how we order, how people meet, they’ve changed cities by influencing streetscapes and they have changed social consciousness. Schultz says that despite recent moves to become a cultural curator, they still have to earn their stripes as tastemaker and that “one of the great strengths of Starbucks is our humility”.

For the four weeks ended May 21, PAPA JOHN’S INTERNATIONAL INC. said same-store sales rose 5.2 percent domestically and global systemwide sales increased 24.6 percent, compared with the same period last year.

Crediting its new line of Frescata deli sandwiches, WENDY’S INTERNATIONAL INC. posted its first positive monthly same-store sales result in 14 months. For the April reporting period, systemwide same-store sales at U.S.-based Wendy’s units increased 0.4 percent from a year earlier, with corporate restaurants up 0.2 percent and franchised restaurants up 0.5 percent.

For the four weeks ended May 20, YUM! BRANDS INC. said blended samestore sales for its U.S. company-owned restaurants fell 1 percent including decreases of 7 percent at Pizza Hut and 1 percent at KFC and an increase of 5 percent at Taco Bell.

In a regulatory filing, JET CAPITAL INVESTORS LP disclosed that it had garnered a 6.3-percent stake in Nashville, Tenn.-based O’CHARLEY’S INC. in part to help smooth the progress of a turnaround at the casual-dining company and to “at least” assist management in providing an adequate return to shareholders. In a letter included with the filing, MATTHEW MARK, a general partner at New York-based Jet Capital said. “We trust that the board will meet its fiduciary duties to shareholders to put the company up for sale should management fail to drive the operational progress required to enable the company to earn an at least adequate return on its asset base”.

For the third quarter, CBRL GROUP INC.’s revenues rose 3 percent to $644.2 million, but earnings fell 10 percent and for the three months ended April 28, net income was reported at $24 million compared with $26.6 million for the year-ago period.

BURGER KING’s largest franchisee owner of two chain concepts, CARROLS CORP. , posted an 8.7-percent increase in first-quarter earnings before interest, taxes, depreciation and amortization to $21.9 million. For the three months ended March 31, revenues grew 7.7 percent to $182.5 million.

MCDONALD ’S VENTURES LLC, a majority shareholder of CHIPOTLE MEXICAN GRILL INC., operator and franchisor of more than 500 fast-casual restaurants, priced a secondary offering of Chipotle stock, 4.1 million shares, at $61.50 each last month which was a marked increase from McDonald’s original plan to sell the shares for $53.98 each.

A 7.6-percent decline in first-quarter net profit was reported by RED ROBIN GOURMET BURGERS INC. whose 311-unit casual-dining chain includes 139 franchised branches, to $7.4 million, or 44 cents per share, despite a 20.9-percent rise in revenues to $170.5 million.

The board of YUM! BRANDS INC ., parent of Taco Bell, KFC and Pizza Hut, has raised the company’s quarterly cash dividend 30 percent to 15 cents a share and will distribute the dividend on August 4 to shareholders of record July 14.

First-quarter net income for EPL INTERMEDIATE INC., parent of EL POLLO LOCO INC., fell to $9,000 from $ 115,000 a year earlier on higher interest expense. for the three months ended March 29. However, operating income jumped 44.7 percent to $7.1 million on a 15.5-percent rise in revenues to $63.2 million.

Although revenues rose 5.4 percent to $292.6 million and same-store sales increased 6 percent, BUFFETS HOLDINGS INC., operator and franchisor of 357 restaurants under the Old Country Buffet, HomeTown Buffet and Tahoe Joe’s Famous Steakhouse brands, posted a deeper third-quarter loss than a year earlier.

With the help of improved restaurant margins and same-store sales results and lower-than-anticipated stock option expenses, JACK IN THE BOX INC. recorded a 5.4-percent increase in second-quarter profits from a year earlier to $21.8 million, or 61 cents per share.

For the first quarter ended March 31, WESTERN SIZZLIN CORP., the operator and franchisor of 137 Western Sizzlin, Great American Steak & Buffet and Quincy Steakhouse outlets, saidnet income was $6,298, versus a net loss of $66,581 for the same period last year.

A 34.7-percent increase was reported by TRIARC COS. INC., franchisor of the 3,500-unit ARBY’S chain, in that division’s first-quarter operating profit to $19 million on its more than tripling of revenues to $277.3 million. Last July, Triarc acquired the 775-unit Arby’s franchise RTM RESTAURANT GROUP, which contributed $205.9 million in sales for the quarter, which ended April 2.

Despite a 5.5-percent increase in revenues to $306.5 million and positive samestore sales at its three restaurant concepts, O’CHARLEY’S INC. reported a 28.8-percent drop in first-quarter profit to $7.2 million. Per-share earnings were 31 cents for the quarter ended April 16.

Same-store sales for the five weeks ended May 3 at RYAN’S RESTAURANT GROUP INC. decreased 0.4 percent, while total sales fell 2 percent to $80.3 million. The decline was attributed to the effects of increased gasoline prices during the period according to the company.

For the five weeks ended May 3, BRINKER INTERNATIONAL INC. reported a 2.1-percent slide in its blended same-store sales. Chili’s Grill & Bar, the company’s flagship concept, reported a same-store sales dip of 1.6 percent.

First quarter income at CALIFORNIA PIZZA KITCHEN INC ., operator and franchisor of 192 restaurants, reflected a 9.3-percent increase in operating income to $6.7 million on a 17.6-percent rise in revenues to $129.7 million. For the three months ended April 2, same-store sales increased 6.4 percent from year-earlier results.

A 3.1-percent drop was reported in same-store sales for its fiscal third quarter by CHAMPPS ENTERTAINMENT INC., operator or franchisor of 63 sports and entertainment restaurants, however, their net loss was narrowed on lower food costs and a smaller asset impairment charge compared with the year-earlier period.

A samestore sales increase of 4.1 percent was posted by MCDONALD’S CORP. for April at namesake restaurants in the United States, compared with year-earlier results. For the month, global comparable-store sales rose 6.2 percent for the month. In Europe, with the help of a limited-time offering of premium beef and chicken sandwiches in Germany and France and the Monopoly sweepstakes promotion in the United Kingdom, same-store sales jumped 9.3 percent.

CHIPOTLE MEXICAN GRILL INC . more than tripled its first-quarter profits to $8 million on a 40.2-percent increase in revenues to $187 million. Improved restaurant-level operations and sales, publicity related to its recent initial public stock offering, and mild weather as factors were cited as reasons for the increase. According to Chipotle, majority owner MCDONALD’S CORP. will publicly offer 4.1 million Chipotle shares in the current second quarter, reducing McDonald’s 69-percent stake in the fast casual burrito chain. They also said that McDonald’s will use its proceeds to buy back McDonald’s shares and that Chipotle will receive no proceeds from the offering.

For the 13 weeks ended April, 2, STARBUCKS CORP., with 11,225 coffeehouses worldwide, reported a 26.7-percent increase in second-quarter profit on total revenues that rose 24.2 percent to $1.89 billion citing brisk customer demand for its coffee drinks, a strong showing for green tea beverages and its ever-growing footprint of stores as reasons for the increase. Along with the rise in earnings, Starbucks’ stock is up 50% over the past 12 months, compared with 12% for the Dow Jones Industrial Average and 27% for the average restaurant stock. With the stock trading at more than 51 times expected per-share earnings for 2006, that is more than triple the price-to-earnings multiple of the average stock in Standard & Poor’s 500-stock index.

For the four weeks ended April 24, CKE RESTAURANTS INC. credits the success of premium product lines as the driver behind a 2.1-percent blended same-store sales at its Hardee’s and Carl’s Jr. The results, however, according to CKE, were restrained by unfavorable weather, a calendar shift in the Easter holiday and lack of new media advertising for the 1,049-unit Carl’s Jr. and 1,993-unit Hardee’s brands.

Despite a negative shift of up to 2 percent for the April 16 Easter holiday, when the bakery-cafes’ operating hours were reduced, PANERA BREAD CO. reported a 2.8-percent gain in systemwide same-store sales for the four weeks ended April 25.

For the 12 weeks ended March 21, LONE STAR STEAKHOUSE & SALOON reported a 59.6-percent drop in first-quarter net income to $4.4 million on a 2.9 percent rise in revenues to $160.8 million.

Early last month, KRISPY KREME DOUGHNUTS INC. finally filed its long-awaited restatement of earnings for fiscal 2003 through the third quarter of fiscal 2005. Net results were reduced by $34 million, and they reported a $198.3 million net loss for that full fiscal year, versus a profit of $48.6 million in fiscal 2004. A loss for the 12 months ended Jan. 30, 2005 was reported despite a 9-percent annual rise in corporate revenues to $707.8 million.

On April 27 th, CBRL GROUP INC .’s $1.25 billion credit facility became effective allowing the company to finance its planned repurchase of up to 16.8 million shares of its common stock at $42 per share in a modified “Dutch” auction. CBRL Group is the parent of the Cracker Barrel Old Country Store and Logan’s Roadhouse brands.

A 3.4-percent increase in first-quarter operating profit was recorded by DENNY’S CORP. to $15 million, which yielded a net profit of $712,000 after interest expenses. A year earlier, Denny’s posted a quarterly net loss of $1.5 million.

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, West Coast Start Up
2. Director of Finance, West Coast
3. Director of Training, Southeast & West Coast
4. Senior Director of Franchise Operations, Southeast
5. VP Construction, Midwest
6. VP HR, Full Service Concept, West Coast
7. VP Operations, Midwest
8. VP Operations Service, Southeast
9. Director of Franchise Development, Northeast
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.

Dick Wray was recently quoted in an article written by Kate MacArthur which appeared in AD AGE concerning the changes in leadership among the major restaurant chains. For example, two more recent moves were Chris Carroll, former Subway Restaurants marketing chief who joined emerging fast chain, Cosi and John Cywinski, executive vice president, chief marketing officer, resigned from Applebee’s. Dick was quoted as saying the banking industry and competition are driving the changes. He reeled off top marketer shifts at Rubio’s, Del Taco, Captain D’s, Chevy’s and Benihana within the past year. “Banks are driving everything right now,” he said. “They get multiples out of restaurants faster than any other product, they get better drive for their dollar than any other industry. People are repositioning concepts to get more advantageous positioning.”

Space in New York is at a premium thus developing an extended-stay hotel can be challenging. Today, a small number of independent hotels provide long-term lodging while there are only two extended-stay hotels affiliated with national brands, the EXTENDED STAY AMERICA near LaGuardia Airport that opened in 2001 and the RESIDENCE INN by MARRIOTT in Manhattan which opened earlier this year. They also cater to short term guests. Extended-stay hotels trade the higher room rates they could charge at peak times for a steadier and higher occupancy rate with long-term visitors receiving discounts up to 30 percent. However, in a market like New York, hotel operators may want to hold out for the type of guest who often pays $200 or more a night for a room. The AFFINIA HOTELS and the BENJAMIN have pulled out of the extended-stay business in Manhattan as New York hotel guests more often are looking for more service.

According to the recently released 2006 edition of Trends in the Hotel Industry published by PKF HOSPITALITY RESEARCH (PKF-HR), an affiliate of PKF Consulting, U.S. hotels were able to turn a healthy 8.8 percent rise in total revenue into an impressive 15.5 percent increase in profits in 2005 marking the second consecutive year of double-digit profit growth for U.S. hotels. However, owners and operators are concerned that expenses continue to rise at a level more than twice the rate of inflation. R.MARK WOODWORTH, president of Atlanta-based PKF-HR, said, "Overall, the strong economy has been a blessing for U.S. hotel managers. However, it also presents some operational challenges. Hotels have been the beneficiaries of strong increases in demand that have resulted in tremendous gains in revenue. However, the inflated costs of such expenses as property taxes, utilities, and labor have inhibited the flow-through of top-line dollars into bottom-line profits."