SAY IT ISN’T SO…..EVEN CHEESECAKE IS DOWN!

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

Mother always said, “There is a bright side to everything!” The exorbitant price of filling the SUV tank is taking a substantive toll on the casual dining segment. In the second quarter, 18 casual chains posted negative growth compared to 8 in the same quarter last year. Stock prices for the publicly traded casual chains are hovering at 52 week lows. Same-store sales are down at Chili’s, Applebee’s, Red Lobster, Outback and now the ever-ascending P.F. Chang’s and Cheesecake Factory as well.

Where is the silver lining? Who will the beneficiaries of this unprecedented tumble be? As a result of “trading down” on the part of cash pressed consumers, the Quick Service Restaurant (QSR) sector appears to be getting an assist from the struggles of its big brothers in casual, but on further analysis only enough to prevent their own slide. The fast casual segment is the clear winner, finally receiving its hard earned due. If the fast casuals continue to deliver on the value proposition, their growth will be exponential. Trendy, quick, often ethnic with a healthier premium perception, the fast casual chains are poised for success.

According to Technomic Information Services, this $11 billion arena has shown the following per segment growth:

• Mexican – 18%
• Bakery/Café – 21%
• Chicken – 20%

Beneficiary #1 is inarguably the fast casual gang. Panera, Chipotle and El Pollo Loco – ROCK ON!

Beneficiary #2 is the consumer, no doubt. Adversity brings out the best in our industry and always has. The casual dining gang is very busy getting better yet again. Lower prices, more exciting menu choices, and remodeled units are just the beginning. The fine folks at Outback appear to have told their pesky hedge fund to take a hike and it appears that is just what they did. Watching the best and brightest in our industry raise the bar is always great viewing.

All the best,

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

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

OONA SETTEMBRE has been hired as the new director of culinary research and development for ON THE BORDER MEXICAN GRILL AND CANTINA, a 50-plus-unit chain operated by BRINKER INTERNATIONAL. Settembre was formerly corporate chef of DAVE & BUSTER’S.

Yum! Brands veteran ROBB CHASE has been named to the newly created post of president PAPA JOHN’S INTERNATIONAL INC.’s international division. Papa John’s International Inc. is the owner of the 2,924-unit pizza brand. President of Papa John’s domestic arm, WILLIAM VAN EPPS, had been overseeing the 350-unit international division which has outlets in 24 countries. Prior to his appointment, Chase was president and chief executive of Famous Players, a division of Viacom and a leading Canadian theatrical exhibition company and before that he was senior vice president of international franchising at Tricon Global Restaurants, now called Yum! Brands, parent of Pizza Hut, KFC and other brands.

DAVE GOEBEL, president and chief operating officer of APPLEBEE’S INTERNATIONAL INC., was promoted to the position of chief executive effective this month and replaces LLOYD HILL, who will continue as non-executive chairman of the board. While Goebel’s successor as president or COO has not been named, it is expected that at least one of the posts will be filled by CARIN STUTZ, currently executive vice president of operations.

MCDONALD’S CORP. named RALPH ALVAREZ to president and chief operating officer following the resignation of MIKE ROBERTS, who was with the company for 29 years. A report last month in The Chicago Tribune indicated that Roberts’ resignation was due to the company’s refusal to provide him with a definite timetable for succeeding chief executive, JIM SKINNER. The former executive vice president and COO of McDonald’s USA, DON THOMPSON, will succeed Alvarez. Two other executives also were promoted to leadership positions. Assuming the role of executive vice president and chief operating officer of McDonald’s USA is JANICE FIELDS. She replaces DON THOMPSON who was elevated to the position of president of McDonald’s North American division. Previously, Fields served as president of the central division for McDonald’s USA. Her replacement is JAMES JOHANNESEN, who was serving as senior vice president and chief support officer for McDonald’s USA.

PETER ROBINSON, was named by BURGER KING CORP., the 11,100-plus unit chain, to Burger King’s Europe, the Middle East and Africa division, known as EMEA and will replace STEVE DESUTTER, who resigned last month. Prior to this appointment, Robinson served as president of Pillsbury USA and senior vice president of General Mills Inc. He will be based at the EMEA headquarters in Zug, Switzerland.

Chief operating officer of Yum! Brands, DAVID DENO, will become a managing director in October of CCMP CAPITAL ADVISORS LLC, the newly formed private-equity firm participating in the $8.3 billion buyout of Philadelphia-based contractor ARAMARK CORP. A press release issued by PEET’S COFFEE & TEA INC. told of the pending affiliation when they announced that Deno has been appointed to the board of the Emeryville, Calif.-based coffee roaster and retailer.

RUBIO’S FRESH MEXICAN GRILL, the 150-unit fast-casual chain, named DANIEL PITARD president and chief executive officer. He succeeds SHERI MIKSA, who resigned in December 2005 to pursue other interests. Pittard, a private investor, held executive positions for consulting group McKinsey & Co., PepsiCo Inc. and Amoco Corp., which is now part of BP. During the late 1990s, he served as chief strategic officer of the computer company, Gateway Inc., and was responsible for acquisitions and new ventures. RALPH RUBIO, the chain’s co-founder, who has served as interim president and chief executive, remains chairman of the board. Rubio said, “With a proven record of strategic vision, financial acumen and operational success, Dan is an outstanding addition to lead our executive management team. I look forward to working with him to successfully grow our brand.”

E. MICHAEL MURPHY was promoted by CKE RESTAURANTS INC., parent of the CARL’S JR., HARDEE’S and LA SALSA FRESH MEXICAN GRILL chains, to chief administrative officer and NED LYERLY was promoted to senior vice president of global franchise development. In addition to his new responsibilities leading the legal, human resources, payroll and information technology departments, Murphy will continue to serve as general counsel and executive vice president, overseeing franchising, which he has done since 2000. Lyerly will expand on his responsibilities as senior vice president of the company’s international division in his new role.

DOUGLAS REIFSCHNEIDER, a quick-service and casual dining marketing veteran, was named by FIREHOUSE SUBS as marketing director for the 237-unit chain. Reifschneider succeeds BEVERLY JELINEK, who joined Goodwill Industries earlier this year. He was formerly field marketing director for Fazoli’s Management Inc.

Three employees were promoted to the roles of vice presidents of their respective divisions by GARDEN FRESH RESTAURANT CORP., parent company of 97 buffet restaurants under the SOUPLANTATION and SWEET TOMATOES. RICHARD THOMSON was named vice president of management information systems; SUSAN HOFFMAN was promoted to vice president of the food procurement department; and STEVE DURLER was named vice president of construction. MICHAEL MACK, chief executive of Garden Fresh Restaurant said, “Our employees are our most valuable asset and it is a great pleasure to watch them grow with the company. Richard, Susan and Steve have been instrumental to the success of Garden Fresh and we are ecstatic that they will continue to help move our company forward.”

JOHN TESAR was named by MANSION ON TURTLE CREEK hotel to succeed DEAN FEARING as executive chef. Most recently, Tesar served as executive chef of rm restaurant at the Mandalay Bay Resort & Casino in Las Vegas under RICK MOONEN. Fearing is joining the Dallas Ritz-Carlton currently under construction.

PERRY SHOLES was hired as vice president of crew resources for RAISING CANE’S CHICKEN FINGERS, which is owner or franchisor of 47 quick-service restaurants. A native of New Orleans, Sholes joined Raising Cane’s from Kraft Foods, where he directed human resources for the company’s Latin American region.

DAVE CAVALLIN has been promoted to finance vice president for LOGAN’S ROADHOUSE INC. the 166-unit casual steakhouse division of CBRL GROUP INC. and will oversee capital budgeting, purchasing analysis and operations finance. Cavallin will still report to senior vice president of accounting and finance, AMY BERTAUSKI. Prior to this move, he was senior finance director.

SCOTT LIPPITT, 47, was fired from QUIZNOS SUB, the 4,400-unit sandwich chain after he was arrested for allegedly using the Internet to arrange a sexual encounter with a 13-year-old girl. Lippitt was Quiznos executive vice president of marketing. In an statement issued by Quiznos following Lippitt’s arrest, Quiznos said that it decided to terminate him after conducting its own investigation.

PETER P. HAUSBACK was hired as chief financial officer by GRANITE CITY FOOD & BREWERY LTD., operator of 14 namesake brewpub-restaurants in seven Midwestern states, and will succeed DANIEL H. BAUER, who resigned in order to remain in Atlanta with his family. Hausback most recently was VP and chief accounting officer of NightHawk Radiology Holdings Inc. and a key player in its IPO. Additionally, he was finance vice president and CFO of Il Fornaio (America) Corp., the upscale Italian restaurant-bakery chain and served as VP and CFO of WestCoast Hospitality Corp., operator and franchisor of lodging and entertainment services.

TODD IMMEL was named restaurant chef at TABLE 1280, the 220-seat fine-dining brasserie and tapas lounge located in Atlanta. He fills a post vacated by Shaun Doty who left to debut his newest neighborhood concept, Shaun’s, in midtown Atlanta. Immel previously worked as executive chef at Luma restaurant in Winter Park, Fla. New York-based RESTAURANT ASSOCIATES, a unit of British conglomerate COMPASS GROUP PLC, operates Table 1280.

A securities filing by BURGER KING HOLDINGS INC . disclosed that it was sued July 24 in California Superior Court under the state’s Proposition 65 warning statute for allegedly failing to disclose to customers that flame broiled BK burgers could contain a cancer-causing agent, POLYCYCLIC AROMATIC HYDROCARBONS, or PAHs. If found liable, Burger King said that it could be required to pay penalties and provide injunctive relief. While the amount of damages sought by LEEMAN V. BURGER KING CORP. , was not disclosed,the Miami company said, “It is not possible to ascertain with any degree of any confidence the amount of our financial exposure, if any.”

RICK SPIROS , chef of BLOCK 44, received a warning letter from the health department in the first reported enforcement action under Chicago’s new ban on sales of foie gras. If a second violation occurs, Block faces a fine of $250. According to Spiros, he served about eight orders of foie gras three days after the effective date of the much-publicized ban which was after he had purchased the expensive liver, in order not to waste it. There is a pending lawsuit filed by the ILLINOIS RESTAURANT ASSOCIATION and a chefs’ coalition challenging the ban.

Private-equity company, CATTERTON PARTNERS, and venture capital firm, OAK INVESTMENT PARTNERS, have acquired the parent of the Cheddar’s Casual Cafe and Fish Daddy’s chains. Cheddar’s president, DOUG ROGERS, and chief operating officer, GREG GOOD, would continue in their roles. Previously, Catterton and Oak invested together in P.F. Chang’s China Bistro, Baja Fresh Mexican Grill, Caribou Coffee and La Madeleine French Bakery Café.

QUAD-C MANAGEMENT has bought an undisclosed stake in STICKY FINGERS CORP.of Mount Pleasant, S.C. indicating that private equity firms are keen on investing in smaller restaurant companies. Quad-C had previous investments in Red Robin Gourmet Burgers, Huddle House, and Caribbean Restaurants, a Burger King franchisee with units in Puerto Rico and the U.S. Virgin Islands.

Hedge fund PIRATE CAPITAL LLC sold its 5.3-percent stake that it held in OSI RESTAURANT PARTNERS INC. Previously Pirate had threatened OSI with a proxy fight for board control unless the parent of Outback Steakhouse divested some smaller chains and urged OSI’s board to halt development of the Outback brand and spin off the Carrabba’s Italian Grill, Fleming’s Prime Steakhouse & Wine Bar and Bonefish Grill chains to boost shareholder value. Pirate declined to divulge the price it sold at or when and only said that it had divested all of its 3.9 million beneficially owned shares of OSI stock.

C . STEPHEN LYNN, former SONIC CORP. and SHONEY’S INC. chairman and chief executive, along with a group of others, offered to buy the outstanding shares it doesn’t already hold in BACK YARD BURGERS INC. at $6.10 per share. BBAC LLC of Atlanta already owns an 8.8-percent stake in the Memphis-based operator and franchisor of 172 restaurants in 20 Southern and Midwestern states. CHEROKEE ADVISORS LLC and its managing member, REID ZEISING, are part of the BBAC group whose offer was rebuffed this past June by Back Yard Burgers in an earlier buyout proposal. However, Back Yard Burgers decided not to pursue the offer saying it was “unacceptable” to Back Yard’s board and the proposal itself would not be reviewed.

Making it the first major quick-service chain to switch to a non-hydrogenated cooking oil, WENDY’S INTERNATIONAL INC. has completed the transition to using cooking oil with zero grams of trans fat per serving at its 6,000 U.S. restaurants. IAN ROWDEN, Wendy’s executive vice president and chief marketing officer said, “We’ve already served millions of servings of food cooked in the new soy/corn oil blend with zero grams of trans fat, and consumers have reaffirmed that there is absolutely no difference in taste. Furthermore, the conversion to the new oil has been cost-neutral to our system.” Most of the Wendy’s restaurants in Canada re already using the new oil.

A new prototype, SHAKEY’S PIZZA & GRILL, is scheduled to open in Covina, California early this month. Operated and franchised by SHAKEY’S USA, the new test unit is part of a five-year revitalization plan. There will not be a salad bar or hot buffet at the new unit which is typically featured at Shakey’s restaurants but it will have a small game room for children. According to Shakey’s, its 16 company-owned restaurants will be re-imaged by the end 2008 and possibly 10-15 of the system’s 44 franchise units should be upgraded. There are also plans to test the concept outside Southern California in a new market, yet to be named.

During a meeting with officials with the Arizona Cardinals, PETER MORTON, co-founder of HARD ROCK CAFÉ, and his son, HENRY MORTON presented an offer of $3 million for rights to name the Arizona Cardinals’ football stadium after the family’s newest restaurant concept, PINK TACO, in which the younger Morton serves as chief executive.

Reports of their acquisition of REAL MEX RESTAURANTS INC ., parent of El Torito, Chevys, Acapulco and 10 other ethnic concepts have been confirmed by SUN CAPITAL PARTNERS INC., the private-equity company that owns the Bruegger’s, Souplantation, Sweet Tomatoes and Souper Salad restaurant chains. BRUCKMAN, ROSSER, SHERRILL & CO., whose portfolio includes stakes in Au Bon Pain, California Pizza Kitchen and Bravo Development Corp., a 50-unit Midwestern restaurant group held a majority interest in Real Mex.

After a battle with lung cancer, longtime chief executive and one time chairman, JACK LAUGHERY, of HARDEE’S, passed away last month at age 71 from pneumonia. In 1972, Laughery joined Hardee’s through its merger with Sandy’s, a regional burger chain that he was leading at the time. A year later, he was named president and chief operating officer of Hardee’s. In 1975 he was named chief executive and held that post until his retirement in 1990 when he then served as chairman for the next four years. ANDREW PUDZER, current president and chief executive of Hardee’s said, “Our deepest sympathies go out to the Laughery family, especially to his wife, HELEN, and his four daughters. Jack will always be remembered as a tireless leader and fast-food innovator.”

In a deal expected to be completed in the fourth quarter this year, LONE STAR STEAKHOUSE & SALOON INC ., operator and franchisor of 283 restaurants under various brands, will be acquired by Dallas-based private-equity firm LONE STAR FUNDS. The transaction is valued at more than $600 million and shareholders in the restaurant company would be paid $27.10 per share in cash. The deal, still subject to shareholder approval, was approved by the company’s board of directors Aug. 18. However, BARINGTON CAPITAL GROUP LP, an investment management firm representing investors owning about 9.4 percent of common stock said that a proposed $600 million takeover deal undervalues the company. JAMES A. MITAROTONDA, chairman and chief executive of Barington, said, “While we are reserving for now our ultimate judgment on the transaction, we do not believe that the company’s valuable assets and brands are being sold for a price that reflects the intrinsic value of the company.” In mid-March, 30 underperforming namesake restaurants were closed due to escalating net losses and falling total sales at the affected locations. Lone Star Funds is in the process of selling its current foodservice holding, the 291-unit Shoney’s family restaurant chain to private-equity firm Centrum Equities for an undisclosed amount. That deal is expected to close this month.

A 20-unit deal was approved last month between BAR-B-CUTIE FRANCHISE SYSTEMS LLC, owner of the 50-year-old, seven-unit BAR-B-CUTIE brand that now operates in five states and FAMILY & FRIENDS FOOD SL to open the first international restaurant in Valencia, Spain. Barcelona and Madrid are targeted for future openings as part of the 10 year agreement.

Two new franchise agreements were executed by TIJUANA FLATS, a 47-unit fast-casual Tex-Mex chain. The agreements call for 11 units to open in the Pittsburgh area. Five units will be launched by TOM FLANAGAN over the next three and a half years. Burger King veteran, TIM AUVIL, along with ANITA AUVIL, will open five restaurants.

Based on preliminary results of a voluntary internal audit, THE CHEESECAKE FACTORY INC. plans to restate financial results at least for the fiscal year ended Jan. 2 and the first quarter ended April 4 amid an inquiry by federal regulars into stock option grants to its executives. The U.S.SECURITIES AND EXCHANGE COMMISSION is also conducting an investigation into their stock option granting practices. The company stated said its fiscal 2005 10-K and first-quarter 2006 10-Q reports “should no longer be relied upon” and that it had found a “range of potential adjustments would likely be material to the current year and possibly prior years.” The Cheesecake Factory also noted that the “vast majority” of option grants with apparently “incorrect” dates resulting from “administrative oversight” were made prior to June 30, 2002. They missed reporting second-quarter financial results. Two shareholder groups have also filed suit against the operator of 107 namesake and seven Grand Lux Café in the state Superior Court in Los Angeles alleging a breach of fiduciary duty and unjust enrichment related to Cheesecake Factory’s grants of options to executives. In July, Cheesecake Factory said it had begun a voluntary review of its option granting practices, and had retained outside legal counsel to assist.

A franchise agreement was signed between RUBY TUESDAY INC ., the 880-unit casual-dining chain and RT RESTAURANTS SOUTHERN CALIFORNIA LLC calling for RT to open 15 units over the next five years in Southern California. National Football League player JUNIOR SEAU, who recently announced his retirement from the Miami Dolphins, TED DAVENPORT, a Ruby Tuesday franchisee for Hawaii since 2003 and a veteran real estate developer, JEFF HOWIE, will run the new franchise.

CAPTAIN D ’S, the 600-unit quick-service chain, has re-introduced itself as a fast casual concept called CAPTAIN D’S SEAFOOD KITCHEN. In addition to the new design features including new seating and bolder graphics, a new menu features choices such as catfish and shrimp skewers, pasta dishes, blackened tilapia and seven new sides. By year-end, the new Captain D’s Seafood Kitchen logo will appear in ads and on packaging. Additionally, the new logo will be featured on unit exteriors as branches of the chain are remodeled over the next three years.

According to published reports, TODD ENGLISH, chef-restaurateur, has parted the way with investors in his FIGS restaurants in Boston. While the Wellesley Figs would drop that name and go to his former investors, including JIM PALLOTTA, co-owner of the Boston Celtics, English will get the Figs in Charlestown and Beacon Hill. It is said that MICHAEL SCHLOW’s GUAPO RESTAURANT GROUP is negotiating for the Wellesley space.

Chef-owner GUENTER SEEGER is planning to close the acclaimed SEEGER’S in Atlanta and BOB AMICK, noted restaurateur, is negotiating to buy a stake in the fine-dining landmark. Amick, known for such Atlanta hotspots as One Midtown Kitchen and Piebar, is co-founder of CONCENTRICS HOSPITALITY.

WHITE HEN PANTRY INC ., the Lombard, Ill.-based operator and franchisor of 261 C-stores in the Chicago and Boston areas, has been acquired by 7-ELEVEN INC., operator and franchisor of more than 30,000 convenience stores worldwide, for $35 million. New York-based private equity firm, ANGELO, GORDON & CO., held a controlling stake in White Hen. A subsidiary of Japanese company SEVEN & I HOLDINGS CO. LTD., 7-Eleven, said the purchase would help “boost the efficiency” of the chain’s infrastructure, including fresh-food production facilities, considered key to a current focus of 7-Eleven’s marketing. According to Nation’s Restaurant News research, the chain’s 5,340 U.S. stores generated foodservice sales of $1.56 billion for 2005 with total sales of all kinds worldwide of $43 billion last year. In a statement issued by 7-Eleven, “enhanced customer recognition” is one of the acquisition’s main objectives and White Hen units will continue to operate under their current identity until they are converted to the 7-Eleven format.

An informal inquiry by the U.S. Securities and Exchange Commission into the history of the stock option granting practices of CEC ENTERTAINMENT , owner of the Chuck E. Cheese’s brand, is underway. Indications were that the company missed the Aug. 11 deadline for filing results for the quarter ended July 2 because its audit committee had not completed a previously reported internal review of those practices. A number of companies, including The Cheesecake Factory, are under an SEC review as federal authorities look into the possibility that officials at these companies may have illegally backdated stock purchase options granted to executives in order to boost their value.

During the course of the next four to five years, the 61-unit breakfast-lunch only chain, FIRST WATCH RESTAURANTS, based in Bradenton, Florida, is planning to open 15 to 18 locations in the Washington, D.C. market with the first unit scheduled to open last month in Fairfax, VA.

Operator and franchisor of 2,065 namesake quick-service restaurants, JACK IN THE BOX INC., will sell its 25 branches in Hawaii, most of which are in Maui and Honolulu, to CHRIS SCANLAN, a new franchisee and former president of Hawaii’s largest operator of Burger King and KFC outlets. Scalan’s company, SCANLAN MANAGEMENT LLC, also agreed to open an unspecified number of additional Jack in the Box outlets in the state, which has one franchised branch, in Hilo. The sale is expected to be finalized by the fourth quarter.

A LETTUCE ENTERTAIN YOU ENTERPRISES fine-dining restaurant in Chicago, TRU, has converted its small lounge into a caviar and appetizer bar. LEYE’s chairman, RICHARD MELMAN, said, “It’s caviar five ways and light appetizers.” Other news at LEYE include plans to open a six-unit Wildfire, a 1940s style steakhouse concept in Atlanta in the fall with a second location scheduled for next year in McLean, Virginia. Another LEYE concept, WOW BAO, is scheduled to open in downtown Chicago and is a steamed-Chinese-bun takeout stand. According to Melman, LEYE is also talking with Harrah’s Flamingo in Las Vegas for what is likely to be a new-style buffet.

A three-unit Ruth’s Chris Steak House franchisee, DESERT ISLAND RESTAURANTS, has signed restaurateur STEVE HALLIDAY as the first franchisee of its LING & LOUIE’S ASIAN BAR AND GRILL concept. Desert Island Restaurant has the Thaifoon Taste of Asia concept located in Scottsdale and Salt Lake City. According to Desert Island, Halliday’s branch should open by late October in Denver’s new Northfield Stapleton Center.

Contract foodservice and management company, ARAMARK CORP., has agreed to be acquired by an investment group led by JOSEPH A. NEUBAUER, Aramark CEO, for $8.3 billion, including the assumption or repayment of about $2 billion in debt. Completion of the transaction is expected to be completed by early 2007. Last May, a private equity group offered $32 per share, however, now stockholders will receive $33.80 per share in cash. According to Aramark, its board of directors unanimously accepted the revised offer on the recommendation of a special advisory committee of outside directors. According to a securities filing, if for any reason the deal is not completed, Aramark will have to pay, or will receive, $120 million. The buyout group also includes GS CAPITAL, CCMP CAPITAL ADVISORS, J.P. MORGAN PARTNERS, THOMAS H. LEE PARTNERS and WARBURG PINCUS LLC.

Development rights for Indonesia were awarded by KRISPY KREME DOUGHNUTS INC . to PT PREMIER DOUGHNUT INDONESIA, a subsidiary of PT MAP Premier Indonesia. The agreement is for the development of 20 Krispy Kreme shops during the next five years with the first unit opening by the end of this month. According to Krispy Kreme, they would not hold any ownership stake in the franchise. Development rights were also awarded by Krispy Kreme last May for as many as 100 locations throughout the Middle East to the AMERICANA GROUP, a restaurant, food processing, distribution and retail company that operates franchised KFC, Pizza Hut and Hardee’s outlets.

BRIAN COOLEY , a spokesman for THE KRYSTAL CO . was recently quoted by the Associated Press as saying that the operator and franchisor of 420 Krystal fast-food outlets in 12 Southern states “is still in the preliminary stages of the process and cannot comment further at this time” with regards to the company’s hiring of CREDIT-SUISSE FIRST BOSTON GROUP to help the 74-year-old chain find a buyer. In 1997, The Krystal Co. was taken private by ROYAL HOLDINGS INC., formed by PHILIP H. SANFORD, a former senior vice president of finance and administration at Atlanta-based Coca-Cola Enterprises Inc. Corporate revenues in 2005 at The Krystal Co. have been reported as having increased 5.5 percent to $273.7 million on systemwide sales of $422.6 million, up 1.9 percent for the year.

PHIL GREIFELD , chief executive HUDDLE HOUSE INC. announced that KARL MALONE, retired National Basketball Association legend who was a Utah Jazz All-Star and member of the first USA “Dream Team”, is opening a branch of the family-dining Huddle House chain in Farmerville, a northeast Louisiana suburb located near the city of Monroe.

Chicken wing specialty chain, WINGSTOP, has added its 300 th unit in Lancaster, California. There are plans to have 500 outlets by 2008, 100 of them in California according to the company.

A 12 th unit of EL POLLO LOCO has been added in Arizona in the city of Tempe and is operated by the company’s largest franchisee, WKS RESTAURANT CORP. This unit is the first of 12 new branches that WKS agreed to add to its system.

Nation’s Restaurant News has awarded it’s 2006 Pioneer Award to the Ingram family, founders of the WHITE CASTLE chain. The brother-and sister team of BILL and DEBBIE SHORE, founders of SHARE OUR STRENGTH, were winners of NRA’s 2006 Innovator Award. Both awards will be presented in Dallas on October 17 th at the 47th annual MULTI-UNIT FOODSERVICE OPERATORS conference’s awards banquet. White Castle founder E.W. “BILLY” INGRAM’s granddaughter, MARYANN INGRAM KELLEY, will receive the award for the family. In response to the Ethiopian famine and growing concern about hunger in the United States, Bill and Debbie Shore founded Share Our Strength and SOS has raised over $190 million to support more than 1,000 anti-hunger, anti-poverty groups worldwide.

JOHN KAUFMAN, f ormer Koo Koo Roo and California Pizza Kitchen executive, and partner TIM FOLEY, owner of Los Angeles-based Red Carpet Catering, have opened an American bistro chain prototype called TRUXTON’S in Los Angeles with plans for five to six more openings within the next three years.

At KFC, a division of YUM! BRANDS, a new menu item, the Mashed Potato Bowl, is a “convenient meal solution” according to senior director for product innovation and development, PATTY SCHEIBMEIR. According to Scheibmeir, “It was difficult for customers to eat our food on the go” as traditional fried chicken dinners leave fingers messy and often require multiple containers for side dishes. The issue of portability was solved with the Mashed Potato Bowl after chefs at KFC’s laboratory were asked to create a spin-off of the Zesty Chicken Border Bowl from TACO BELL, also owned by YUM! BRANDS. When discussing future bowl products at KFC, Scheibmeir says, “It’s a platform we hope to keep alive for the next several years.”

Sales for PAPA JOHN’S INTERNATIONAL have nearly doubled since NIGEL TRAVIS became chief executive in April of 2005. In a recent interview, Travis said that he believes the U.S. could support about another 1,500 stores that would include a mixture of traditional and non traditional units including locations at airports, stadiums and hospitals. He also indicated that they have arrangements to open 800-plus additional international units over the next 10 years. Travis’ philosophy is “to build on the strengths we have and is a firm believer in communication, holding big meetings with their franchisees twice a year.

For the four weeks ended Aug. 20, PAPA JOHN’S INTERNATIONAL, parent of the 2,964-unit pizza delivery brand, posted a 4.4-percent same-store sales gain at U.S. units.

Declines in same-store sales and average-unit volumes were reported by OSI RESTAURANT PARTNERS INC. for all but one of its restaurant brands for the four weeks ended Aug. 26. Same-store sales at OSI’s 832-unit OUTBACK STEAKHOUSE system fell 4.6 percent at company-owned branches and 5.1 percent at franchised outlets. There was a 5.2-percent drop in same-store sales at all-OSI-owned CARRABBA’S ITALIAN GRILL, a chain of 217 units, while those of 114-unit BONEFISH GRILL and 22-unit ROY’S fell 1.7 percent and 3.6 percent, respectively. At the 42-unit FLEMING’S PRIME STEAKHOUSE & WINE BAR chain, though, same-store sales rose 2.4 percent.

Even with a 1.2-percent rise in the chain’s average check and a 0.9-percent rise in menu prices, CBRL GROUP INC. said that same-store restaurant sales at its 543 Cracker Barrel Old Country Store restaurants had fallen 1.5 percent from year-earlier levels for the four weeks ended Aug. 25.

Shares at BRINKER INTERNATIONAL INC., the casual-dining parent of such brands as Chili’s, Romano’s Macaroni Grill and Maggiano’s, rose following an announcement of a “Dutch auction” tender offer to buy back up to about 11.7 million Brinker shares for a maximum of $450 million.

In its third quarter ended July 13, VICORP RESTAURANTS INC., operator and franchisor of 400 restaurants under the family-dining brands Village Inn and Bakers Square, reported a net loss of $581,000 versus a profit of $1.3 million in the year-ago quarter, despite a 9-percent jump in revenues.

For the four weeks ended Aug. 14, CKE RESTAURANTS INC. reported a 3.8-percent blended same-store sales increase which reflected comparable-unit sales gains of 6.3 percent at its Carl’s Jr. chain and 1.4 percent at its Hardee’s brand.

After reports by WENDY’S INTERNATIONAL INC. that same-store sales at corporate WENDY’S OLD FASHIONED HAMBURGERS restaurants rose 2.5 percent in June followed by a 3.6 percent increase in July, KERRII ANDERSON, the company’s interim chief executive officer, said sales numbers for August “appear to be even better.”

A stock buyback program to repurchase up to $4 million in shares during the next 12 months has been authorized by ARK RESTAURANTS CORP., operator of 51 restaurants in addition to catering and wholesale businesses in New York, Washington, D.C., Atlantic City, N.J. and Las Vegas.

For the four weeks ended Aug. 20, APPLEBEE’S INTERNATIONAL INC. reported a 2.7-percent decline in systemwide domestic same-store sales versus the same period of a year earlier. At domestic franchised restaurants, comparable-unit sales decreased 3.1 percent and at corporate units fell 1.6 percent.

Because of its missed filing date for second-quarter results, THE CHEESECAKE FACTORY INC. said that it had received a notice of possible delisting from the Nasdaq exchange. The company submitted to regulators a notification of late filing because of its internal audit and SEC inquiry into its options practices, which is still pending.

With funds allocated for debt repayment and other corporate purposes, including share repurchases, IHOP CORP., franchisor and operator of 1,264 namesake family-dining units, announced that it would borrow up to $200 million in a private securitization. Additionally, the company authorized a 2-million share increase to its ongoing share buyback program.

For its second quarter ended July 11, the operator and franchisor of 247 bakery-cafes, BRUEGGER’S ENTERPRISES INC., reported year-over-year, same-store sales growth of 5.8 percent at corporate locations and 3.9 percent at franchised units.

For the four weeks ended August 12, YUM! BRANDS INC. reported a 3-percent drop in blended same-store sales for its U.S.-based restaurants. The biggest decline was at Its Pizza Hut concept, who reported a same-store sales drop of 7 percent from a year earlier.

For its second quarter, RED ROBIN GOURMET BURGERS INC. posted slightly lower year-over-year profit even though there was a revenue surge of 19.1 percent and same-store sales gains of 3.3 percent at corporate units and 2.6 percent at domestic franchised restaurants.

A 5.9- percent drop in its third-quarter profit was reported by the STEAK N SHAKE CO., operator and franchisor of 469 full-service, namesake restaurants. The company said continued pressures on consumer spending had led to a modest 1.7-percent increase in revenues and a 3.9-percent decline in same-store sales.

Approval was granted by the board for SONIC CORP., operator and franchisor of about 3,150 drive-ins in the United States and Mexico, for a modified "Dutch auction" tender offer to buy back up to about 25.5 million shares of its common stock, about 30 percent of shares outstanding, for up to $560 million.

Second-quarter profit at TRIARC COS. INC., operator and franchisor of the more than 3,500 ARBY’S restaurants, rose more than sevenfold on revenues that more than tripled to $307.8 million. Triarc earned $3.1 million for the quarter ended July 2 versus $419,000 a year earlier.

BRINKER INTERNATIONAL INC. reported a 46.7% increase in fourth-quarter profit in the midst of ongoing same store sales slippage which is a reflection of the sale of restaurants to franchisees along with a tax benefit that helped boost results for the multichain parent of the Chili’s Grill & Bar brand. Brinker’s net income for the 13 weeks ended June 28 was $73 million versus $49.8 million a year earlier.

On August 10th, a reverse stock split at a 1-for-10 ratio was declared by WESTERN SIZZLIN CORP., effectively reducing the number of outstanding shares and boosting its per-share price. Western Sizzlin Corp. is the operator and franchisor of 131 restaurants under the Western Sizzlin Steak & More, Western Sizzlin Wood Grill, Great American Steak & Buffet Company and Quincy Steakhouses.

Second quarter profit at LANDRY’S RESTAURANTS INC., operator of 311 casual-dining restaurants, including the Joe’s Crab Shack, Landry’s Seafood House and Rainforest Cafe chains, dropped 45.3-percent. The company attributed the drop to increased interest expense from a 2005 refinancing, asset impairment and store closure costs and stock based compensation expenses.

A 1.9-percent July increase in U.S. same-store sales was reported by MCDONALD’S CORP. versus the same month last year, marking the chain’s smallest domestic same-store gain since April 2003 and the first monthly dip below 2 percent since then.

A 16.6-percent jump in third-quarter profit was reported by JACK IN THE BOX INC., operator and franchisor of 2,065 namesake restaurants, including 50 with Quick Stuff convenience stores, and 298 Qdoba Mexican Grill fast casual units, to $27.8 million.

A 0.6-percent increase in second-quarter profits from a year earlier were reported by RYAN’S RESTAURANT GROUP, which is being acquired by Buffets Inc., to $6.9 million even though there was a 3.1-percent dip in restaurant sales to $208.9 million. Total sales for the five weeks ended Aug. 2 at Ryan’s declined 7 percent from a year earlier to $77.5 million.

Despite a nearly 14-percent rise in revenues to $136.2 million, compared with $119.4 million in the same quarter last year, CALIFORNIA PIZZA KITCHEN INC., operator and franchisor of 196 restaurants, including its namesake casual-dining chain, the fast-casual California Pizza Kitchen ASAP brand and an LA Food Show restaurant, reported a 2.9-percent dip in second-quarter net income to $6 million.

In its first-quarter NATHAN’S FAMOUS INC., operator or franchisor of 362 restaurants under the Nathan’s Famous, Miami Subs and Kenny Rogers Roasters brands, reported a 19.4-percent boost to $1.4 million on revenues that rose 7.6 percent to $12.2 million.

For the 12 weeks ended July 9, O’CHARLEY’S INC., operator or franchisor of 356 restaurants under the O’Charley’s, Ninety Nine and Stoney River Legendary Steaks brands, reported a net income of $4.4 million versus $5 million in the same period last year. Additionally, they posted an 11.5-percent reduction in second-quarter earnings on revenues that rose 4.4 percent to $223.6 million, compared with a year earlier.

Same-store sales for the four weeks ended July 26 at DENNY’S CORP. rose 3 percent at the 543 branches owned by the company as their guest checks for the month increased 4.2 percent.

Parent DARDEN RESTAURANTS INC. reported that same-store sales at Red Lobster fell about 2 percent as guest counts dipped nearly 4.5 percent and average checks increased nearly 3 percent.

Versus the same period a year earlier, same-stores sales at LONE STAR STEAKHOUSE & SALOON INC., operator and franchisor of 279 restaurants, fell 5.5 percent for the six weeks ended July 25.

For the three months ended June 25, PAPA JOHN’S INTERNATIONAL INC., the operator and franchisor of 2,960 Papa John’s Pizza outlets reported a 1.2-percent increase in corporate revenues to $241.6 million. They posted a 40.3-percent jump in second-quarter net income to $15.3 million including a net gain of $4 million from the consolidation of the chain’s franchisee-owned cheese purchasing company, BIBP Commodities.

For the 13 weeks ended June 25, BUCA INC., owner and operator of 104 BUCA DI BEPPO and VINNY T’S OF BOSTON restaurants, reported a second-quarter net loss of $718,000 on revenues that rose 2.3 percent to $61 million.

In its first quarterly financial report since going public in May, BURGER KINGS HOLDINGS INC., posted a net loss of $9 million for the fourth quarter ended June 30, despite a 6-percent increase in revenues to $533 million.

Despite a 1-percent gain in the chain’s average check and a 0.9-percent increase in menu prices CBRL GROUP INC. said that same-store sales at its CRACKER BARREL OLD COUNTRY STORE chain had fallen 2.8 percent from year-earlier levels for the five weeks ended July 28.

Keep It Current!

By: Bettie Biehn

Whew! You finally dotted the final “I”, crossed the last “t”, and ran the whole document through spell-check for the eighth time. And you had your best friend, your cousin the English major, and your Mom read and re-read it for content, grammar, and punctuation. So now you’re done……
or are you?

Most of us write a resume only a few times in our lives….and only when we’re sick and tired of our current jobs, and want to explore some new opportunities. But my advice is: keep your resume up-to-date at all times. You never know when you’ll need it.

After all, even if you really like your current job, your “dream” job may just ramble across your desk or monitor, and you just have to go for it. At that moment, you need a current resume. Or you’re asked to make a speech, or give a presentation, and they ask you for your current resume. You don’t have time to re-do it that quickly, but if you had it already done, you could email them a copy. Sound simple? It is. But you need to make yourself add that latest job, or organization, or accomplishment to your resume soon after you add them to your work life.

Most of my clients tell me that they needed their updated resumes yesterday. My best advice to you is to keep your resume as current as possible and you’ll always have it to use. It doesn’t take much time; it mainly takes commitment and determination. Procrastination has no place here, so go update your resume. NOW!!

Bettie Biehn, a career human resources (HR) professional, is founder and president of Career Change Central, LLC, a premier resume writing and career coaching business. Bettie is also a freelance writer, and her published magazine articles address key HR issues. Contact Bettie at bbiehn@careerchangecentral.com, and visit her website, www.careerchangecentral.com .

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

The following list is a sampling of our current engagements.

1. COO, South
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, West
8. VP Training, Southeast
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.

Restaurants have taken on a new prominence over the last five years at an increasing number of shopping centers. In the past, shopping centers relied mainly on department stores to serve as anchor tenants, however, many have now turned to restaurants, especially clusters of restaurants, combined with movie theaters and bookstores to attract shoppers. At the 200-store International Plaza mall next to Tampa International Airport in Florida, shoppers can eat at an indoor court that has nine fast food establishments but they also have the choice of 15 full-service restaurants, including about a dozen that sit within a large outdoor area adjacent to the mall. Destination restaurants like Blue Martini, a bar that also serves food, Bamboo Club Asian Bistro, Café Japon and a Capital Grille steakhouse are located at the Centers of Bloomfield Hills, Michigan. In Eastern Town Center in Columbus, Ohio, there are a half dozen restaurants offering both valet parking and white tablecloths. This move towards more and better restaurants is the result of the surging popularity of mixed-used developments that often combine stores, offices and residential space as well as open-air shopping centers that use restaurants to attract shoppers. MATTHEW K. HARDING, president and chief operating officer of Levin Management, a retail services company in North Plainfield, New Jersey, recently was quoted as saying “In the past a shopping center might have had one or two restaurants, but now we’re seeing both more restaurants and better restaurants.” BARRY ROSENBERG, president of Steiner & Associates, said that his company found that 75 percent of the visitors to who came to one of its centers to eat also bought something other than food while they were there. Rosenberg also said, “To us, the merchandizing mix for restaurants is as critical as the merchandizing mix for apparel. When we look at a center, we look at it from a restaurant standpoint, like whether it has a great Italian restaurant, a steakhouse, a place to go to lunch or a quick brunch, or a place to go for a business dinner.”

Time-share properties are steadily expanding into the big cities including New York. MATT AVRIL, president and managing director of Starwood Vacation Ownership, a division of STARWOOD HOTELS AND RESORTS WORLDWIDE was recently quoted as saying, “The trend to bring this type of product to an urban environment is clearly growing, and what better urban environment than New York.” Earlier this year, Starwood began selling time shares at the St. Regis Hotel in New York City. HILTON HOTELS converted two floors of its flagship hotel, the Hilton New York into 78 time-share units several years ago and called it the Hilton Club. This past June, Hilton bought a premium site in Midtown Manhattan and according to industry analysts, the property could become part of the Hilton Grand Vacations time-share chain. MARRIOTT VACATION CLUB INTERNATIONAL’s vice president of corporate affairs and brand awareness, EDWARD F. KINNEY, said urban properties are “great to have as an added dimension to what you offer.” He added, “But they are a little challenging in that cost of construction and redevelopment is higher than a traditional resort property. You can’t always have the same amenities you would in a resort environment, and you have to charge more for the product.” Marriott was the first of the major hotels to expand into the time shares in the 1980’s. Investors, however, know that time-shares don’t always appreciate like other real estate. HOWARD C. NUSBAUM, president and chief executive of the American Resort Development Association said, “The value proposition is in the use. You don’t buy them because you’re looking for a real estate appreciation.”

Last year, U.S. investors pumped $6.8 billion into hotel purchases in Europe, representing about a third of European hotel deals as private-equity firms are continuing to purchase European hotels. Often, hotels can offer the buyer returns that exceed 20% and the sales enable hotel operators to focus on franchising, lightening debt loads and executing share buybacks boosting their stock price. Last month, HILTON HOTELS CORP. announced that it is considering the sale of all or part of its Scandic brand of hotels located primarily in Sweden, Norway, Finland and Denmark. Additionally Hilton International has intentions of selling 10 hotels in Europe in Belgium, France, Germany, Luxembourg, Spain and Switzerland. INTERCONTINENTAL HOTELS GROUP PLC has been another active seller in the last three years selling 173 hotels with a net asset value of $5.3 billion. STARWOOD CAPITAL GROUP GLOBAL LLC and BLACKSTONE GROUP have also been active buyers in the past three months.