Hire Attitude!

Written by Bob Gershberg, Managing Partner, Dick Wray Executive Search

The etymology of the word attitude is French, from Italian attitudine, literally, aptitude.

Having morphed over the years attitude is currently defined by Webster’s as follows:

1. a position assumed for a specific purpose <a threatening attitude>
2. a : a mental position with regard to a fact or state <a helpful attitude> b : a feeling or emotion toward a fact or state
3. a : a negative or hostile state of mind b : a cool, cocky, defiant, or arrogant manner

with the ballet or aircraft position definitions being less than applicable in this context.

Define it as you may one thing is for sure, attitude cannot be taught; we can modify behavior but not teach attitude. During the 70’s & 80’s we restaurant operators were fond of hiring the “champagne” personality, albeit the bubbly got a bit flat during tighter talent pool periods. Skills and competencies can be developed but only those team members with the right attitude will thrive. Moreover, passion and commitment often trump education and experience in the service sectors. While compiling the success factors required for a position, it is crucial to focus on the soft skills as well as the hard.

We are prone to excitement when a resume shows successful tenures with the classic brands and our hearts surely go aflutter when we see the Stanford MBA. Nevertheless, one need only view Southwest Airlines and its tremendously successful human resource model to appreciate the hire for attitude philosophy. Fine balance in the hunt for the best human capital, from initial candidate sourcing through hire, is required to create the team player who will ultimately reach the Victor’s Cup.

The restaurant arena is rich with success stories of those who won the battle with attitude and perseverance. Colonel Sanders at the age of 65 was turned down 1009 times before he sold his first piece of “finger lickin’ good” chicken. Ray Kroc was a bit of a job-hopper, when at 52 and in ill health, he mortgaged his house to the hilt one more time in order to roll out McDonald’s. A little “attitude” goes a long way in this business…..Hire it!

Bob Gershberg | Managing Partner
Dick Wray Executive Search
bob.gershberg@dickwray.com

".....matching the dreams, energy and experience of super-star candidates with the vision of our business partners."

"Dick Wray Executive Search - Maintaining the same ethical recruiting standards for over 34 years."

THE BRIAD GROUP, T.G.I. Friday’s franchisee, named JAMES “SMOKEY” HUGHES vice president of operations for its 74 restaurants in California, Arizona, New Mexico and Nevada. Hughes previously worked as senior operations VP of the Granite City Food and Brewery chain and from 1986 to 2001, he was operations VP for Friday’s franchisor, Carlson Restaurants Worldwide. Recently, Briad acquired the Friday’s largest franchisee, Phoenix-based Main Street Restaurant Group.

JEFF WOOD, a Brinker International veteran, was named as senior vice president and chief development officer by DAVE & BUSTER’S INC., the 47-unit large-scale restaurant and entertainment chain. He replaces BRYAN SPAIN. Wood will be responsible for real estate, design and construction at Dave & Buster’s. Prior to this appointment, Wood was with Simon Property Group Inc. of Indianapolis and spent 12 years in real estate and development with Dallas-based Brinker.

SHANNON FOUST has joined ROOSTER’S FRANCHISING LLC as president and will be responsible for expanding its 11-unit Rooster’s casual-dining chain beyond Columbus and Dayton, Ohio. Foust was chief executive of DAMON’S GRILL until it was sold earlier this year.

ERIC LACLAIR was promoted to vice president of operations at GRANITE CITY FOOD & BREWERY LTD ., operator of 14 namesake restaurants in seven Midwestern states. Steve Wagenheim heads the chain as president and CEO and Tim Cary is COO. LaClair has been with the company since its 1999 inception as a specialist in made-from-scratch regional and traditional foods and “handcrafted” beers and was district operations manager for Iowa and Nebraska.

In the midst of the company’s efforts to cut costs by $100 million, five WENDY’S INTERNATIONAL executives have opted for early retirement or left for other positions. Senior vice presidents STEVE FARRAR and JOYCE EUFEMI and division VPs ERIC COLAH and BILL RADEBAUGH chose to accept an early-retirement package. DENNIS FARROW, senior VP, left for a job at another company. Chief operations officer, DAVE NEAR, said he had completed the realignment of his operations team. In addition to 10 regional VPs, Dallas division VP JOHN PETERS is promoted to senior VP of Wendy’s Western region. ED CHOE was earlier elevated to executive VP of restaurant services and was succeeded by senior VP of the Northern region by TOM SPERO. Additionally, KERRII ANDERSON, former CFO, will continue on an interim basis as corporate president and CEO.

PAUL AVERY , chief operating officer for OSI RESTAURANT PARTNERS INC. is resuming the presidency of the casual-dining giant’s 931-unit OUTBACK STEAKHOUSE brand until a permanent replacement is found for BENJAMIN NOVELLO, who resigned the post mid-July. Previously, Novello served as senior vice president of operations, and was earlier a joint-venture and managing partner in the chain. He rose to president in January 2004. No reason was provided for his departure.

On August 31, PETER RAINSFORD will step down as director of the University of Denver’s hotel-restaurant-tourism management school at the Daniels College of Business to become vice president of academic affairs at the CULINARY INSTITUTE OF AMERICA in Hyde Park, N.Y. ROBERT C. MILL will become interim director at UD and senior associate dean GLYN HANBERY will head a committee to find Rainsford’s replacement.

CBRL GROUP INC. promoted THOMAS VOGEL, a three-year veteran of Logan’s Roadhouse, from president and chief operating officer to its chief executive.

In what parent CBRL GROUP INC. described as a team-based leadership restructuring that began in 2001, CYRIL TAYLOR, president of CRACKER BARREL OLD COUNTRY STORE, retired last month. Also, DAVID GILBERT, Cracker Barrel chief accounting officer and marketing and risk management vice presidents CHRISTOPHER TOMASSO and STEVE HECKLE tendered their resignations. MICHAEL WOODHOUSE, CBRL chairman and chief executive, has assumed the presidency from Taylor. Veteran marketing consultant SIMON TURNER , was installed as Cracker Barrel’s marketing and innovation senior vice president in the restructuring.

In a move in which he will succeed RON WALKER as president of the 600-unit CAPTAIN D’S quick-service chain, DAVID HEAD resigned as president and chief executive of TONY ROMA’S parent company in Dallas. Head was with Tony Roma’s for three years and had previously worked at Shells Seafood Restaurants where he served as president and CEO. Walker has retired after two decades with the company. MARC BUEHLER has been promoted by ROMACORP, parent of the 211-unit rib chain, to chief operating officer and executive vice president in the wake of Head’s resignation. Since 2002, Buehler was vice president of marketing. Captain D’s parent, SAGITTARIUS BRANDS INC., said Head would assume his new post this month.

Effective September 5, 2006, Wendy’s International veteran DENNIS R. FARROW will join IHOP CORP . and will serve as their chief operating officer. He will be responsible for strategic and tactical leadership of the 1,252-unit chain’s franchise and corporate groups in addition to all areas of operations. Before this appointment, Farrow was senior vice president of operations for Wendy’s Midwest region, and also served as senior director of operations services for Taco Bell Corp. Julia A. Stewart, IHOP’s chief executive who was named chairman earlier this year, had been the company’s COO.

COLD STONE CREAMERY, the 1,300-unit chain, announced that JIM FLAUM has rejoined the chain as president and chief operating officer. Before he left Cold Stone in 2004 to run his own company, which operates the Arizona restaurants Teakwood’s Tavern & Grill, Old Town Tortilla Factory and CK’s Tavern & Grill, Flaum served as executive vice president.

A bill was passed by the U.S. HOUSE OF REPRESENTATIVES at the end of July that would raise the federal minimum wage 41 percent — from $5.15 to $7.25 an hour — over three years on a bipartisan 230-180 vote. The increase in H.R. 5970 was blasted by the NATIONAL RESTAURANT ASSOCIATION who said it would be burdensome despite provisions of the ESTATE TAX AND EXTENSION OF TAX RELIEF ACT OF 2006 that include major benefits for small businesses. The NRA also said that the 41-percent hike was the “largest increase in the entry-level wage rate ever proposed.”

As part of an intended settlement of litigation filed last September, KRISPY KREME DOUGHNUTS INC. said it was buying three shops and might buy another 22 from GREAT CIRCLE FAMILY FOODS LLC. The wholly owned Krispy Kreme subsidiary, SOUTHERN DOUGHNUTS LLC., will acquire three Great Circle units in Burbank, Ontario and Orange, California. A condition of the closure of the deal is that Great Circle and Krispy Kreme would dismiss pending litigation and arbitration. Allegedly, Great Circle said that Krispy Kreme had schemed to bankrupt the franchisee in order to acquire it for “cents on the dollar,” and had overcharged for equipment and supplies, misappropriated franchisee funds, improperly changed payment terms and induced Great Circle principals to personally guarantee payments.

CKE RESTAURANTS INC . recently sold 38 of its CARL’S JR. fast-food units throughout Oklahoma and in the Wichita Falls, Texas, area for approximately $10.7 million to STAR CHASERS OKLAHOMA INC. and OKLAHOMA TERRITORIES LLC, whose owners include STEPHEN D. ANTHONY, a four-unit Carl’s Jr. franchisee.

In a move that could possibly set up a proxy fight for board control with a large dissident shareholder, OSI RESTAURANT PARTNERS INC., parent of the Outback Steakhouse chain, said it had decided not to divest its Carrabba’s Italian Grill, Bonefish Grill or Fleming’s Prime Steakhouse and Wine Bar chains. Ideas for boosting its weakening share price would be presented to the board of directors at the end of the third quarter according to the company. In its second-quarter earnings Statement, OSI said “separation or monetization of our growth concepts, at this time, is not in the best interest of shareholders compared to the other alternatives being considered.” This decision is a rebuff to hedge fund PIRATE CAPITAL, who owns 5.3 percent of OSI’s stock and has described OSI an “undisciplined restaurant concept collector” that had deployed $1 billion in capital in recent years amid diversifications as its earnings grew nearly three times slower than revenues and its stock value plummeted. Pirate threatened a proxy fight earlier this year if OSI didn’t divest Carrabba’s, Fleming’s and Bonefish and halt expansion of its core Outback chain while its same-store sales weakened.

A newly opened branch of CALIFORNIA PIZZA KITCHEN in Chicago, called CALIFORNIA PIZZA KITCHEN ASAP, has launched its first breakfast menu. The fast-casual chain offers such morning options as Warm Apple Pie Pizza, Applewood-Smoked Bacon and Italian Sausage Pizza, omelets, bagels, granola, juice and specialty teas and coffees. This unit is the company’s seventh ASAP. Officials did not say if they would offer breakfast at the other CPK ASAPs scheduled to open this year in Hawaii and California.

In a cash transaction valued at $876 million, the operator of the Old Country Buffet and HomeTown Buffet chains, BUFFETS INC., agreed to acquire RYAN’S RESTAURANT GROUP, the Greer, S.C.-based parent of the Ryan’s grill-buffet chain. According to the companies, the deal would create a 675-unit buffet empire with more than $1.7 billion in annual sales. In the buyout, Ryan’s, who is publicly owned, will function as a Greer-based division of Buffets. CHARLIE WAY, Ryan’s chief executive, will continue in his capacity with the combined concerns overseen by R. MICHAEL ANDREWS, Buffets’ chief executive. Buffets, who is owned by CAXTON-ISEMAN CAPITAL INC., a New York-based private equity firm, will also assume an undisclosed amount of debt.

Despite increased revenues, CEC ENTERTAINMENT INC., operator and franchisor of 522 CHUCK E. CHEESE’s restaurants disclosed a second-quarter profit dip and said its board of directors has begun a review of the company’s stock option practices. With federal investigations into alleged backdating and other improper practices at more than 80 public companies, this is the second voluntary internal audit of option granting and exercising practices recently by a restaurant company. THE CHEESECAKE FACTORY INC. chain begun an audit into its options practices, and was being assisted by outside legal counsel. For the three months ended July 2, CEC’s net income fell 3.5 percent from last year’s second quarter to $12.6 million as revenues rose 4.6 percent to $176.2 million.

Approximately $18.4 million was paid by the operator and franchisor of about 3,000 pizza outlets, PAPA JOHN’S INTERNATIONAL, to buy 43 franchised Papa John Pizza units in both Phoenix and Flagstaff, Ariz., from two unidentified sellers.

Airport concessionaire HMSHOST CORP. won a 12-year contract to build and operate food, beverage and retail concessions at the Oakland, California International Airport. Expected revenues from this deal should generate over $675 million.

One of the co-creators of the Philly cheesesteak sandwich and co-founder of the popular PAT’S KING OF STEAKS cheesesteak outlet in Philadelphia passed away last month. HARRY OLIVIERI died of heart failure at 90 years old. In the early 1930s, Olivieri and his older brother, PAT OLIVIERI, ran a hot dog stand in South Philadelphia when they came up with the idea of combining grilled, chopped steak and sliced onions on a roll. FRANK OLIVIERI, Harry’s son, operates the restaurant today.

Also last month, the co-founder of CHEDDAR’S CASUAL CAFÉ chain, AUBREY GOOD passed away. In 1978 near the Six Flags over Texas amusement park in Arlington, Texas, Good founded Cheddar’s with DOUG ROGERS, the chain’s president.

A new prototype was debuted by GARDEN FRESH RESTAURANT CORP., for its Souplantation and Sweet Tomatoes salad bar-buffets chains which adds a “farmer’s market” décor. This 98 th unite, also features an exhibition kitchen and bakery. To improve the flow at the buffets, a two-way access was incorporated into the design. Last October, Garden Fresh was purchased for $198 million by SUN CAPITAL PARTNERS of Florida, a private equity firm, from previous owners Centre Partners Management, Fairmont Capital, and Northwestern Mutual Life Insurance.

One of Chicago-based CENTRUM PROPERTIES’ units, CENTRUM EQUITIES, is negotiating to purchase SHONEY’S RESTAURANTS from LONE STAR FUNDS, which took the 291-unit, Nashville, Tenn.-based regional family-dining chain private in 2002 in a $273 million deal. Although financial terms were not disclosed, the pending acquisition calls for ROGER BROWN , a Centrum Equities partner, to become Shoney’s president if the deal is completed by September. Shoney’s presidency has been held jointly by COO Joe Phramer, chief marketing officer Dan Dahlen and CFO Bob Stetson since the resignation of Roger Head last October.

Last month, LANDRY'S RESTAURANTS INC. announced that it will evaluate “strategic alternatives” for its JOE’S CRAB SHACK and SALTGRASS STEAK HOUSE chains in order to concentrate on “higher-end” concepts and its two Golden Nugget gaming properties which signals their potential spinoffs. RICK LIEM , CFO of Landry’s, said it had been tallying sales growth at higher-end brands such as Landry’s and Chart House and he said that WACHOVIA SECURITIES and NORTHPOINT ADVISORS were being retained to evaluate alternatives.

Some chains including MCDONALD’S and STARBUCKS COFFEE are being threatened by city council leaders in Chicago with possible non-renewal of business licenses for O’Hare and Midway airport outlets unless they agree to remove trans fats from their foods. Chief executives from the chains including KFC and BURGER KING, may be asked to appear before the council at the request of the aldermen to explain their continued use of partially hydrogenated oils, whose trans fats have been linked by medical authorities to heart disease. EDWARD BURKE may seek the restaurants’ voluntary compliance before pushing for a legislative mandate in which he is proposing. He originally called for an outright ban on trans fats at all Chicago restaurants but later revised his bill to target only minimum $20 million-a-year restaurant businesses and permit limited trans fats in some foods. The Chicago Tribune quoted Burke as saying that the chain bosses had an “obligation” to cooperate with legislators. A McDonald’s spokeswoman said that it had not yet received an invitation to appear before the committee and a spokeswoman for Starbucks was quoted as saying its CEO was not planning to attend the meeting

Reportedly, PAUL LEE’S CHINESE KITCHEN’s three remaining units, created by P.F. Chang’s China Bistro creator PAUL FLEMING, have closed. Earlier this year, Outback Steakhouse Inc., now OSI RESTAURANT PARTNERS, sold its 50-percent Paul Lee’s stake back to Fleming. Based in Scottsdale, Arizona, PAUL FLEMING RESTAURANTS holds his interests in other chain concepts he created, which include the OSI-run Fleming’s Prime Steakhouse & Wine Bar and Blue Coral Seafood & Spirits. Under the direction of EDNA MORRIS, brand chief for Blue Coral, OSI is debuting that concept’s prototype this month at a former Hard Rock Cafe site that’s flanked by a Fleming’s Prime and a branch of Roy’s, another high-end OSI chain in Newport Beach, Calif.

TIJUANA FLATS , a fast-casual concept Tex-Mex chain, signed P.J.MOORE of Jacksonville, N.C., to a franchise pact for four North Carolina units with the first branch expected to open by Jan. 1 in Greenville.

Along with outside legal counsel, the audit committee of THE CHEESECAKE FACTORY INC.’s board of directors are voluntarily investigating the company’s handling of stock option grants to executives. Because of recent media and Wall Street attention to the stock option policies of other companies, the $12 billion-a-year operator of 107 namesake and seven Grand Lux Cafe restaurants said they decided to undertake the review. At least 65 public companies are undergoing regulatory probes or in-house reviews for allegedly backdating stock options or manipulating their trigger price to be that of days when the stock price was low according to the news reports. Cheesecake Factory expects to file earnings statements by Aug. 14 after the audit committee’s review.

An autopsy indicated that ROBERT BROOKS , chairman of Atlanta-based HOOTERS OF AMERICA INC. who passed away last month at age 69, died of natural causes. Brooks’ group was an operator and franchisor of 425 namesake casual restaurants in the United States and internationally. He was also the founder of Eastern Foods, a manufacturer of dressings and sauces now known as Naturally Fresh Foods. Hooters is run by his son COBY BROOKS , who serves as president and CEO.

In a case regarding alleged violations of California law requiring meal and rest breaks, a Superior Court judge in San Diego certified a class of 63,000 former and current BRINKER INTERNATIONAL INC. employees as plaintiffs against the parent of Chili’s, Romano’s Macaroni Grill, Maggiano’s Little Italy and other brands. There was similar complaint by California’s Department of Labor in 2002 in which Brinker agreed to pay a $10 million settlement.

A report last month in the Charlotte Observer said that JOE DRURY , chef executive of the group that owns the 352-unit BOJANGLES’ FAMOUS CHICKEN ’N BISCUITS brand, is among four investors who acquired the Charlotte-based JUST FRESH bakery-cafe brand for an undisclosed sum. FRONT FOUR , which is newly formed, plans to fine-tune and expand 10-unit Just Fresh into a national brand, starting with at least 15 branches planned to open during the next three years. The report also said that DANA SINKLER , franchisee, was installed as chief executive to succeed Just Fresh founder WHITNEY MONTGOMERY, who recently retired.

A five-year deal was made between KRISPY KREME DOUGHNUTS INC. and REAL AMERICAN DOUGHNUT CO., an affiliate of Filipino-based MAX’S OF MANILA, a 118-unit casual-dining group, to develop up to 30 Krispy Kreme outlets in the Philippines.

Celebrated chef-operator MICHAEL MINA , recognized for his seafood-oriented restaurants, is planning to open his first steakhouse this October, at the Mandalay Bay resort in Las Vegas. The San Francisco-based MINA GROUP said that STRIP STEAK would be their eighth restaurant. They also operate Seablue and Nobhill at the MGM Grand Hotel in Las Vegas; Arcadia in San Jose, Calif.; and Stonehill Tavern in Dana Point, Calif. .

Last month, registration documents were filed by CBRL GROUP INC.for a public stock offering by its LOGAN’S ROADHOUSE division that would raise up to $350 million and terminate CBRL’s ownership of the 166-unit steakhouse brand. The IPO filing happened one day after CBRL announced a major management consolidation at its 543-unit Cracker Barrel Old Country Store chain in which CBRL chairman and CEO Michael Woodhouse assumed that chain’s presidency and four senior executives resigned or retired.

A lawsuit was filed by the DAIRY QUEEN OPERATORS ASSOCIATION that represents 1,700 of DAIRY QUEEN’s 5,600 franchised outlets against the chain’s franchisor over its requirements that they change their restaurants’ formats and use certain suppliers. The group requested the Circuit Court of Lake County, Ill., stop Edina, Minn.-based INTERNATIONAL DAIRY QUEEN and the affiliated AMERICAN DAIRY QUEEN from imposing seven specific mandates, including the conversion of the franchisees’ units to the DQ GRILL & CHILL fast-casual format. The franchisees also want to keep the franchisor from requiring them to sell Dairy Queen ice cream cakes when extensive building changes and other expenses are needed to comply, and to stop forcing them to use a single provider for a credit card program. The lawsuit is asking the court to define the franchisees’ rights rather than seeking damages.

H&R INC. has sold PECOS DIAMOND STEAKHOUSE in Artesia, N.M., to multiconcept operator STAR BUFFET INC. who, through subsidiaries, operates 14 franchised HOMETOWN BUFFETS, six JB’S, four BUDDY FREDDY’S, four K-BOB’S steakhouses, two JJ NORTH’S COUNTRY BUFFETS, two HOLIDAY HOUSE restaurants and one CASA BONITA Mexican restaurant. Recently, the company entered into a strategic alliance with Western Sizzlin Corp. to switch several restaurants to its brand.

According to the licensee, ROCKELLE CORP., a franchised STEWART’S ORIGINAL ROOT BEER restaurant has opened in the WAL-MART in Shrewsbury, Pennsylvania and is the first of several to be co-branded at branches of the Bentonville, Ark.-based retail giant with more Stewart’s units scheduled to open soon. Through a deal earlier this year with KAHALA CORP., the Scottsdale, Ariz.-based franchisor of the Taco Time and Blimpie quick-service chains, Rockelle secured Wal-Mart sites for the Stewart’s outlets and was granted rights to develop Blimpie’s shops in Wal-Mart stores, too.

In a sale expected to total approximately $119 million at $6.40 per share in cash, MAIN STREET ACQUISITION CORP., a subsidiary of T.G.I. FRIDAY’S franchisee THE BRIAD GROUP, has completed the previously reported purchase of Phoenix-based MAIN STREET RESTAURANT GROUP, which operates 56 T.G.I. Friday’s units as well as several other concepts. The deal would create a practically $400 million company in combined assets that will be among the industry’s largest franchise operators. In addition to serving as a franchise operator of 18 T.G.I. Friday’s, Briard also operates more than 50 Wendy’s units and is a developer and operator of Marriott and Hilton hotels. Main Street Restaurant Group has exclusive rights to franchise the T.G.I. Friday’s brand in Southern California, Nevada, Arizona and New Mexico. Additionally, Main Street Restaurant Group operates the proprietary casual-dining concepts Bamboo Club, with 10 units, and Redfish Seafood Grill & Bar, with four, as well as a licensed Alice Coopers’town restaurant in Cleveland.

METROMEDIA RESTAURANT GROUP’s 310-unit division, BENNIGAN’S GRILL & TAVERN, has added its 30th restaurant in South Korea, where it has had branches for 10 years. Operated by the RISEON franchise group, the new unit located in Bucheon, is the chain’s 48th unit abroad, including stores in Cyprus, El Salvador, India, Ireland, Mexico, Panama and Qatar.

Buffalo, N.Y.-based foodservice management company, DELAWARE NORTH COS., is partnering with the EMPIRE RACING group to bid on a contract for management of Saratoga Race Course and New York City’s Belmont and Aqueduct tracks. Currently, sports and entertainment facilities manager, CENTERPLATE, operates the tracks’ foodservices. Its contract expires in 2007.

State lawmakers are being urged by the PENNSYLVANIA RESTAURANT ASSOCIATION to pass a bill that would ban smoking in all public workplaces, including restaurants, taverns, clubs and casinos. The PRA reversed its previous opposition to changing the state’s smoking regulations and in a letter to legislators; they called for “a comprehensive ban that protects the health of all Pennsylvania workers.” The PRA’s decision was reached the day before the U.S. Surgeon General’s office issued their report stating that secondhand smoke is harmful and separately ventilated areas for smokers do not protect nonsmokers. PATRICK CONWAY , chief executive of the PRA said the decision was not prompted by any pending legislation and said “But by staking out the high ground on this and getting out front, we might be better positioned to guide the debate at the state level.”

In a deal expected to close by year-end, publicly held LIVE NATION INC ., a concert promoter, agreed to pay $350 million to acquire HOB ENTERTAINMENT INC., which operates 10 HOUSE OF BLUES clubs featuring a Southern home-cooking menu in New Orleans; Chicago; Myrtle Beach, S.C.; Orlando, Fla.; Las Vegas; Cleveland; Atlantic City, N.J.; and San Diego, Anaheim and HOB’s base in West Hollywood, California. GREG TROJAN , chief executive of HOB, said the deal “represents a compelling opportunity to grow our brand and accelerate the expansion of our club business, both in the United States and abroad.”

Six multiunit executives were named by NATION’S RESTAURANT NEWS as its 2006 GOLDEN CHAIN award winners and will be honored at the NRN-produced Multiunit Foodservice Operators conference Oct. 15-18 in Dallas. The recipients are Qdoba Mexican Grill’s president and chief executive, GARY J. BEISLER; Domino’s Pizza Inc.’s chairman and CEO, DAVID A. BRANDON; Cold Stone Creamery Inc.’s CEO and chairman, DOUGLAS A. DUCEY; Army & Air Force Exchange Service’s commander and CEO, Major Gen. PAUL W. ESSEX; Texas Roadhouse Inc.’s president and CEO, G. J. HART; and McDonald’s Corp .’s vice chairman and CEO, JIM SKINNER. Based on balloting by NRN readers, one of these leaders will be named Operator of the Year at MUFSO’s Golden Chain awards which will be presented at the conference’s annual awards banquet sponsored by American Express.

An agreement was made by RED ROBIN GOURMET BURGERS INC ., to buy the 13 franchised branches of the casual-dining chain in Washington State for $42 million in cash from partnerships affiliated with GREAT WESTERN DINING. Approximately $1.4 million of negative net working capital will be assumed by Red Robin in this deal and will be funded through borrowings under an existing credit facility. The units being acquired had sales of nearly $56 million last year according to Red Robin which already owns 18 branches of its namesake chain in Washington.

In a letter to franchisees, FRED DELUCA, founder of the SUBWAY chain and president of the sandwich brand’s franchisor, DOCTOR’S ASSOCIATES INC., said he was “confident” the courts will find that the company was entitled to modify franchise contract terms affecting Subway’s advertising trust, contrary to allegations in a lawsuit by some 10,000 operators. He stated that that “once the courts make a decision, we will all certainly abide by it.” DeLuca’s letter, according to a copy obtained by Nation’s Restaurant News, asserted that the SUBWAY FRANCHISEE ADVERTISING FUND TRUST, or SFAFT, had violated the franchisor’s transparency policies by not detailing expenditures. In the letter, DeLuca stated “SFAFT chose not to comply with our requests. So on April 1, the company adopted a new franchise agreement… [that] gives us flexibility on how to handle [franchisees’] advertising contributions.” Represented by the NORTH AMERICAN ASSOCIATION OF SUBWAY FRANCHISEES, the plaintiffs stated that they had “no choice” but to sue after negotiations with the franchisor stalled.

According to new research by TECHNOMIC INFORMATION SERVICES, the restaurant industry will see sales rise for the rest of this year and through 2007 at about a 3-percent real growth rate, adjusted for an estimated 3.2-percent rate of inflation despite distinct pressures on the national economy. The restaurant industry consultant believes that consumers are not giving up their ingrained habits of dining out or buying takeout meals even though they are being strained by higher gas costs .

Responding to feedback received in their annual survey, FLAT TOP GRILL has aimed to make dining in their restaurants a better value by lowering prices, increasing their selections of healthier menu items and strengthening employee training to offer a great dining experience. Additionally, there are plans for three new store opening within the next year.

CURT JONES , the inventor and founder of DIPPIN’ DOTS recently said, "When some people see it for the first time, it's always interesting to watch their reaction." He is referring to the reaction of first time customers when sampling the tiny, cryogenically frozen beads of ice cream, sherbet and yogurt he invented nearly two decades ago. Jones has watched the chain grow from a one-man operation into a 200-worker operation and is sold to nearly 2,000 locations across the country, from mall kiosks to amusement parks and stadiums. Dippin’ Dots has been named to Inc. magazine’s list of fastest-growing privately held companies twice in recent years and in March of last year, Franchise Times magazine listed Dippin' Dots tops among its Fast 55, noting that since 1999, the company's franchise units had spiked 13,154 percent.

In response to the announcement by the NATIONAL RESTAURANT ASSOCIATION to keep its annual trade show at McCormick Place in Chicago through the year 2011, Mayor Richard Daley said, "This is a real victory for Chicago. The National Restaurant Association looked at a number of other cities and concluded that Chicago is still the best place in the nation to hold your convention or trade show." In addition, the city's hotels have agreed to set aside a bigger block of hotel rooms for the show, raising the total to 18,000 within the next two years, up from 13,500. The restaurant association had started looking elsewhere because of their frustration with union work rules and the cost of exhibiting and staying in Chicago.

PANERA BREAD has announced their plan to roll out a flatbread pizza that will be sold after 4 p.m. in an effort to draw dinnertime diners. The new menu item called Crispani, will be on the menu in 75% of the company’s 900-plus cafes by year end if the roll out is successful. RON SHAICH, Panera Bread’s co-founder and chief executive, said, "It is a very upscale product, and the first salvo in our effort to boost unit sales during the evening. It's a natural extension of our bread business."

Even though Americans claim they want to eat healthier, many restaurant chains do not believe it. Restaurants like BURGER KING continue to advertise high calorie food items like their BK Stackers which can be supersized to include as many as four slabs of beef, four slices of cheese and four strips of bacon. DENNY’s advertises the supersizing of the Grand Slam Breakfast, one of its most popular menu items, that now includes three strips of bacon, three sausage links, two eggs, hash browns and three. According to Russ Klein, chief marketing officer at Burger King, “Some of our most successful products over the past few years have been indulgent products, whether it be the Tendercrisp Chicken Sandwich, the Angus Steak Burger, the Chicken Fries product or the Stackers.” While he agrees that obesity is a problem, he emphasizes that Burger King’s menu does offer a full spectrum of choices, saying “We have everything from salads to veggie burgers to grilled chicken. On their hamburgers, people can say hold the mayo or they can go bun-less. Somebody who wants to be in control of their diet can do it a Burger King.” A spokesman for IHOP, Patrick Lenow, said, “In focus groups, it’s hard to find healthier products that people are really going to get excited about”. IHOP says its customers prefer more decadent offerings to the healthier one. Last year, WENDY’s experienced the discrepancy between what people say and what they do when they put a fresh fruit bowl on the menu. The fruit did not sell despite a $20 million marketing push. Denny Lynch, a Wendy’s spokesman, said, “We listened to consumers who said they want to eat fresh fruit, but apparently they lied.” The same scenario took place at HARDEE’s. Andrew F. Pudzer, chief executive of CKE Restaurants, which owns Hardees and Carl’s Jr., said, “We tried to sell salads, and nobody wants them.”

RICHARD MELMAN was recently quoted in an interview with Dave Carpenter in the San Francisco Chronicle as saying, “A sense of humor is very much part of what we do. If we can’t have fun and make money, there’s something missing.”. Melman is the founder and chairman of LETTUCE ENTERTAIN YOU ENTERPRISES INC. and has been hailed as a creative force within the industry along with his 35-year old restaurant empire. He says he is just looking for inspiration for the next great American restaurant concept and doesn’t like putting labels on his restaurants such as specialty-themed. He has developed concepts like Corner Baker Café, Maggiano’s Little Italy and Big Bowl fresh Chinese and Thai and has built them into prospering mini-chains, selling them to larger companies that expand them. His concepts have including Lawrence of Oregano, Great Gritzbe’s Flying Food Show, Jonathan Livingston Seafood and Fritz, That’s It. Melman, now chairman, says he sill never take the company public or let it turn into a mega chain on his watch.

An 8.3-percent increase was booked in second quarter operating income by TIM HORTONS INC., operator and franchisor of 2,625 doughnut specialty shops in Canada and 297 in the United States to $98.5 million on a 10.4-percent rise in revenues to $406.8 million.

Second quarter earnings per share at RUTH’S CHRIS STEAK HOUSE INC. nearly doubled from a year earlier as revenues increased 16.6 percent to $60.6 million and same-store sales jumped 6 percent, primarily from price increases.

A second-quarter net loss of $29.1 million was reported by WENDY’S INTERNATIONAL INC., reflecting impairment charges of $122.5 million for its Baja Fresh Mexican Grill chain, on an 8.3-percent rise in revenues to $1.0 billion. In the same quarter last year, Wendy’s had a net profit of $70.8 million.

After expensing stock option compensation and certain rent costs as revenues rose 12.8 percent to $264.2 million, RARE HOSPITALITY INTERNATIONAL’s second-quarter earnings fell 1.8 percent.

In a filing with securities regulators, it was reported that during the quarter ended June 17, YUM BRANDS INC., owner of the KFC, Pizza Hut and Taco Bell brands, sold 107 restaurants to franchisees.

Preliminary second-quarter results were released by MCDONALD ’S CORP., confirming its earnings per share were 67 cents for the period, versus 42 cents a year earlier. For the three months ended June 30, net income was $834.1 million on revenues of $5.57 billion, compared with $530.4 million on revenues of $5.1 billion for the previous second quarter.

For the fiscal year ended May 30, FRISCH’S RESTAURANTS INC. posted a 38-percent annual drop in net earnings to $9.2 million on a 4.2-percent increase in revenues to $291 million, a sales record for the parent of 90-unit Frisch’s Big Boy and 34 licensed Golden Corral restaurants.

Last month, DENNY ’S CORP. positioned itself to reduce secured debt using cash proceeds from the sale of 84 company-owned, franchisee-operated restaurants in an amended agreement with senior lenders.

Despite a 5.5 percent drop in revenues blamed mostly to soft sales at U.S. locations, DOMINO’S PIZZA INC. recorded a 6-percent increase from a year earlier in second-quarter profits.

According to the company, second-quarter net income at YUM! BRANDS INC. rose 8 percent to $192 million as revenues increased 1 percent to $2.18 billion for the three months ended June 17. Although U.S. same-store sales for the four weeks ended July 15 fell 3 percent at Taco Bell, 7 percent at Pizza Hut and were flat at KFC, Yum raised its forecast per-share earnings for 2006 from $2.81 to at least $2.83 on strong results from China.

Domestic same-store sales rose 5.2 percent for June and 4.2 percent for the second quarter at MCDONALD ’S CORP. The increased sales were driven by breakfast and a Happy Meal promotion.

Registration documents for a public offering were filed by its LOGAN’S ROADHOUSE division by CBRL GROUP INC. last month that would raise up to $350 million and end CBRL’s ownership of the 166-unit steakhouse brand.

For the second quarter ended June 30, IHOP CORP., operator and franchisor of 1,264 restaurants, said systemwide same-store sales rose 3.1 percent, reflecting higher traffic counts and a “modest” increase in guest check average.

Same-store sales for the second quarter ended July 1 at WINGSTOP RESTAURANTS INC., operator and franchisor of nearly 500 chicken wing restaurants rose 11.1 percent, marking its 12th straight quarter of such gains.

For the five weeks ended July 2, DARDEN RESTAURANTS INC. began its fiscal 2007 with a same-store sales increase of 3 percent to 4 percent at Olive Garden and a decrease of 5 percent at Red Lobster.

The franchisee of 48 Wendy’s and five O’Charley’s units, MERITAGE HOSPITALITY GROUP INC., narrowed its second-quarter loss to $695,759, versus $1 million in the same period last year. Sales rose 8.1 percent to $15.2 million.

Revenues for the second quarter ended June 27 at PANERA BREAD CO., operator and franchisor of 939 bakery-cafes jumped 30 percent to $197 million. For the four weeks ended June 27, Panera said same-store sales rose 4.7 percent at company owned bakery-cafes and 3.5 percent at franchise locations.

For the five weeks ended June 28, DENNY’S CORP.-owned branches of the namesake chain recorded a 1.3-percent dip in samestore sales as their guest counts declined 4.7 percent.

Same-store sales for the four weeks ended June 23 at BOB EVANS FARMS INC. fell 4.1 percent at its Bob Evans family-dining chain. At Mimi’s Cafe, the company’s casual-dining chain, same-store sales fell 1 percent for the period.

For the five weeks ended June 25, PAPA JOHN’S INTERNATIONAL INC. reported a 4.9-percent increase in domestic systemwide same-store sales, reflecting a 4.3-percent increase at corporate units and a 5-percent gain at franchised stores.

Same-store sales at RYAN’S RESTAURANT GROUP INC., operator of 334 grill-buffet locations, fell 3.3 percent for the four weeks ended June 28.

Domestic same-store sales for the four weeks ended June 11 at AFC ENTERPRISES INC., operator or franchisor of 1,837 POPEYES CHICKEN & BISCUITS outlets, rose 2.2 percent, reflecting a 5.1-percent rise in the chain’s average check and a 2.8-percent decline in sales transactions. Additionally, for the four weeks ended May 14, same-store sales rose 2.9 percent, reflecting a 5.6-percent increase in the average check and a 2.5-percent decline in transactions.

Written by Bettie Biehn

Put That Resume to Work!

In prior columns, I’ve talked a lot about what to say, how to say it, what format to use, where to place key information, things to keep in mind, who should write it and keeping it error-free. The “it” I’m referring to is your resume, of course. Everyone knows that you have to have a resume. But why? What makes this one document so important in your job search? It might help to list some reasons we need a resume – a current resume – and some of the ways we use it.

The obvious use for having a well-written, attractive resume is in a job search. A resume is the one document that puts you out there, in full view of a prospective employer, and enumerates all your wonderful qualities. Unless you have an inside helper at the company who can pave the way and speak on your behalf, the resume has to open that door, make that employer want to call you for an interview. Thus, all the other advice, like “put the good stuff up front,” “be completely honest,” “craft an easy-to-read, easily understood, to-the-point resume,” feeds into a document that beckons a possible new boss to want to talk with you. In most employment circles, professionals agree that a dynamite resume is a must-have in a job search.

Keeping your resume current is also important. Let’s say you get asked to speak to a group at your child’s school, or to address a gathering at your alma mater. Often the first thing you need to produce is a biography, a shortened and edited version of your resume. If you haven’t updated that resume since you joined the company – ten years ago – there’s a lot unaccounted for on your resume. I know it’s easy to forget that resume when you’re happy in your job, and all is good – but remember, layoffs happen, companies merge, and it’s always good to have a resume that’s close to ready. I’ve had more than one client who has needed a resume – fast - to apply for a job. Keeping your resume current is also good practice in listing all the terrific things you’ve accomplished in your current job – a nice ego boost when the world isn’t looking so good, or you’re feeling unappreciated.

Think of a resume as the historian of your career. Like your career, it is not a static entity, it is continually changing, adapting to newer information, shifting format to keep up with current demands, and it should always reflect you. Computer technology makes it very easy to change your resume quickly.

Reviewing your resume periodically also helps in figuring out what jobs you’ve liked, what you’ve liked about them, the skills you’ve enjoyed using, the environments that work for you, and thus can point the way to that dream career. Putting things down in black and white is, I find, a most useful exercise in sorting things out.

So get that resume up and running, keep it current, and use it. Work that resume!

Bettie Biehn, a career human resources (HR) professional, is founder and president of Career Change Central, LLC, a premier resume writing and career coaching business. Her clients include corporate executives, government professionals, and nonprofit senior staff. Bettie is also a published freelance writer. 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, West Coast Start Up
2. Director of Manufacturing, Northeast
3. Senior Director of Franchise Operations, Southeast
4. Director of Franchise Development, Midwest
5. VP Construction, Midwest
6. Chief Purchasing Officer, Latin America
7. VP Operations, Midwest
8. VP Franchising, Mid Atlantic
9. Director of Franchise Development, Northeast and Midwest
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.

STARWOOD HOTELS AND RESORTS WORLDWIDE INC . has named MATT OUIMET, a longtime Walt Disney Co. executive to president of its hotel group, a new position created to oversee the company’s nine brands and more than 850 hotels. Ouimet will direct the company’s four division presidents responsible for North America, Latin America, Asia-Pacific and Europe, Africa and the Middle East. In his position as president at Disneyland Resort in Anaheim, Ouimet oversaw two theme parks and three hotels. The hiring is in line with Starwood’s chief executive, STEVE HEYER’s strategy to further refine the distinctions between Starwood’s nine brands and to form partnerships with consumer and entertainment companies. Starwood has not had a top executive primarily overseeing hotel operations in Heyer’s tenure which is unusual in the hotel industry. According to Heyer, he said “Given Matt’s sensitivity and experience in branding and bringing those brands to life operationally, we think he is an excellent fit.”

There are a number of web sites that have been launched that allow job hunters to talk with potential colleagues and get the inside scoop about an employer before they get hired. However, those seeking a position with a company need to know that on many sites, what is posted can be viewed by anyone, including current and future bosses. Sites such as Jobster will allow users to answer questions about their workplace. These answers can give prospective hires more information about the employer and company culture according to Jason Goldbert, chief executive officer of Jobster. Additionally, its is possible for employers to monitor Web sites to see what their employees are saying. A note of caution, however, is for those seeking jobs, reading online posts can lead to misimpressions as many people tend to complain more than compliment.