Turnover – The Good, The Bad and The Not So Ugly

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

Lost productivity, customer dissatisfaction, reduced business, exit expenses, recruiting, interviewing, hiring, training and orientation; the list of turnover costs has been drilled into our heads for decades. Cost estimates of losing an employee range from 30% of annual salary for entry level to 400% for executive level. I myself have written and preached the value of solid retention programs often. The truth is turnover can be good, very good in fact, for performance driven companies. A workforce filled with under-performers and stale managers is far more costly than the expense associated with the recruitment and training of fresh, ambitious individuals.

Rather than a general drive to minimize turnover, we are well served to retain our top performers, strengthen our mediocre performers and oust our weakest performers. Applebee’s deserves kudos for their innovative system. They do not reward managers for keeping turnover low but only for keeping it low for the top and middle level performers. There is no retention goal set for their bottom 20%.

Turnover, voluntary or involuntary, allows for the introduction of new talent, fresh skill sets, reset compensation levels, greater inclusion and the repositioning of human capital to align with the current customer base. Further, it creates opportunity and upward mobility for the remaining team members. Turnover, too, yields positive outcome when a weak performer is replaced by a superstar.

High retention is accomplished with solid leadership and is an admirable and effective goal, but as is always the case, balance is everything. The “up or out” philosophy may seem harsh, however quite judicious. At the risk of sounding like an executive search consultant, institute a good recruitment and selection process and your turnover costs will be diminished while weak performers will be a thing of the past.

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.”

JOHN L. CUTTER, president and chief executive of FRIENDLY ICE CREAM CORP., who joined Friendly in 2003, has resigned to pursue other interests. the company’s chairman since 2003, DONALD N. SMITH, will act as interim CEO and president as the company looks for a replacement for Cutter.

RENAE SCOTT was hired as chief marketing officer for ROUND TABLE PIZZA INC. Scott previously served as vice president of field marketing and media for Carl’s Jr., a division of CKE Restaurants Inc., and worked at the Tracy-Locke and Grey Advertising agencies.

According to NEIL KIEFER, chief executive, HOOTERS MANAGEMENT CORP., the operator of 23 Hooters restaurants in Chicago, Tampa Bay, Fla., and New York, has promoted four senior managers to newly created regional vice president and chief officer posts. Long-time vice president of the group’s 11 Chicago restaurants, SAL MELILLI, was named HMC’s chief operating officer, and DENISE WILLIAMS who oversaw marketing and advertising, was promoted to chief marketing officer. BILL MOORE and STEVE BALDACCI, regional managers, were named regional operations vice presidents for Tampa Bay and Chicago-New York, respectively.

EATZA PIZZA’s president and CEO, RON STILWELL has resigned and has been replaced by STEVE BELDEN, formerly the fast-casual chain’s vice president of operations. Formerly president of Sonic Drive-In franchisee, Debco Foods, Belden said Eatza Pizza will continue efforts to reduce the number of franchisor-operated outlets and focus on franchising.

After a little more than a year with the company, chief operating officer WILLIAM MATTHEW CARPENTER has left FRISCH'S RESTAURANTS INC., operator and licensor of about 130 Frisch’s Big Boys and franchisee of about 30 Golden Corrals in Ohio, Kentucky, Indiana and Pennsylvania. No details about the resignation were offered in their disclosure to securities regulators.

President BOB HOLDEN was promoted to the additional post of chief executive by the operator of the 38-unit ELEPHANT BAR casual-dining chain succeeding CHRIS NANCARROW, who died in December. In 2003, Holden joined Elephant Bar’s parent, SB RESTAURANT CO., as president. Prior to that, he was chief executive of Pat & Oscar’s, the San Diego-based fast-casual chain.

According to the company, chief financial officer STEPHEN M. KING will replace co-founder JAMES W. “BUSTER” CORLEY as chief executive of DAVE & BUSTER’S INC., owner of 47 large-scale restaurant-entertainment units. After 22 years at Carlson Restaurants Worldwide King joined Dave & Buster’s and will continue as CFO. Corley will become chairman emeritus and an adviser to the CEO.

JODY BILNEY has been hired by OSI RESTAURANT PARTNERS as chief marketing officer for its 941-unit OUTBACK STEAKHOUSE chain. In addition, the consulting contract with SCOTT BEDBURY, of BRANDSTREAM, and NANCY SCHNEID, OSI’s former chief branding officer, was extended by OSI through next June. Prior to joining OSI, Bilney was chief marketing officer at Openwave Systems, a developer of mobile data and text messaging systems and has held senior marketing or management positions at Charles Schwab & Co., Verizon Communications, GTE and DowBrands. Bilney, upon her hire, will receive an inducement grant of 50,000 OSI restricted common shares, which will fully vest on her fifth anniversary and half-vest after her third.

SCOTT MOFFITT was named by Atlanta-based CHURCH’S CHICKEN to the newly created post of vice president of franchise sales and development. Prior to his appointment, Moffitt served as senior vice president of franchise sales for CKE Restaurants. In his new position, he will oversee real estate development for franchising and work to increase franchise sales.

Last month, JIM VINZ was named president of CORNER BAKERY CAFE, the 90-plus-unit fast-casual concept owned by the upscale Italian dinnerhouse chain IL FORNAIO (AMERICA) CORP and replaces MIKE HISLOP, who remains chief executive. He will also continue as chief operating officer, a position he has held since 2005.

TOM NORTON has been hired by BJ’S RESTAURANTS INC. operator of 51 high-volume casual-dining outlets, as chief human resources officer. He will replace BILL STREITBERGER. Norton’s responsibilities will include recruiting, talent development, training, compensation, benefits, performance evaluation and recognition strategies at BJ’s. Formerly, he was senior vice president of human resources at American Golf Corp., manager of some 170 public, private and resort courses with more than 10,000 employees in 28 states.

CHERYL BARRE was named by ARBY’S RESTAURANT GROUP INC. as chief marketing officer and president of the ARBY’S FRANCHISE ASSOCIATION and will replace DEBBIE PIKE, who announced her retirement earlier this year. With more than 20 years of marketing and management experience with major consumer brands and Fortune 500 companies, Barre will be in charge of Arby’s product development, national and field marketing, advertising, media, consumer insights and research.

After five years with the company, PHILLIP RATNER resigned as president and chief executive of the MARIE CALLENDER’S chain. PERKINS RESTAURANT & BAKERY acquired Marie Callender’s in May. PERKINS & MARIE CALLENDER’S INC.’s president and chief executive, JOSEPH TRUNGALE, said Ratner was instrumental in the successful merger. Marie Callender’s senior vice president of operations, STEVEN SKOIEN, will step in to head the California-based subsidiary.

EDDIE VALENTE, long-time BUCKHEAD LIFE RESTAURANT GROUP operations director, has joined THE GRAPE ENTERPRISE, as operations vice president. He will report to former operations vice president JEFF PENDLETON, who was promoted to development and franchise executive vice president. He will head manager and staff training in addition to wine bar operations.

LEON DE WET was named as the new chief information officer for O’CHARLEY’S INC., operator and franchisor of 365 casual and upscale-casual restaurants in 26 states and will report to O’Charley’s chief financial officer LARRY HYATT. De Wet was formerly an International business intelligence and strategic systems vice president for Brinker International.

JOHN BETTIN, former Morton’s of Chicago president, is the new president of BUCA INC. and will replace WALLACE DOOLIN, who will remain chairman and chief executive. Most recently, Bettin was chief operations officer and senior vice president of Potbelly Sandwich Works and held positions at Capital Restaurant Concepts and Houlihan’s.

ERIC STEINHOFF was named director of franchise development by MAX & ERMA’S and takes over duties formerly handled by president ROB LINDEMAN. Previously, Steinhoff’s franchise development experience was with United Franchise Group in West Palm Beach, Fla. and Minuteman Press International of Farmingdale, N.Y.

RON BASINGER was named vice president of franchise sales by ROBEKS CORP., a smoothie and juice bar franchising company. Additionally, MEGGAN KNOTT was named chief financial officer. Basinger previously worked for La Salsa Fresh Mexican Grill as vice president of franchise sales and also worked at Miami Subs Grill and Manchu Wok. Knott was formerly with Los Angeles-based Grill Concepts Inc. and in the real estate, gaming, manufacturing, health care and retail industries.

President and chief executive CRAIG MILLER was elected board chairman by the board of RUTH’S CHRIS STEAK HOUSE INC. succeeding ROBIN SELATI, managing director of Chicago-based Madison Dearborn Partners. Selati had held the post since 1999, when Madison Dearborn acquired control of Ruth’s Chris in a recapitalization.

ESTHER L. SNYDER, who co-founded the iconic West Coast drive-thru chain, IN-N-OUT BURGER, died last month at the age of 86. She was chairman and president. Operations vice president, MARK TAYLOR, will take over as president.

According to WENDY’S INTERNATIONAL INC., a U.S. District Court judge in New York denied “in all respects” a motion by a small group of dissident Wendy’s bondholders to block the spinoff of its remaining shares of TIM HORTONS INC. to Wendy’s shareholders as a special dividend. After the close of business on September 29th, Wendy’s shareholders of record as of Sept. 15 will receive 1.3542759 shares of Tim Hortons for each share of Wendy’s they hold which represents the 82.75-percent stake in Tim Hortons that Wendy’s retained after taking the chain public earlier this year.

A sale of 60 company-owned, franchisee-operated restaurant properties of DENNY’S CORP. was completed for $62 million, and the proceeds will be used to reduce its “heavy debt burden.” NATIONAL RETAIL PROPERTIES INC., the buyer of the properties, also may purchase an additional six properties included under the original purchase agreement.

In a move that could set a nationwide precedent, New York city’s heath department last month proposed changing the health code to ban most artificial trans fats in all restaurants and requiring quick-service operations that already offer calorie counts to also list them on menu boards. THOMAS FRIEDEN, Health Commissioner of the city said he has the support of Mayor MICHAEL BLOOMBERG on the new initiative. The use of oil that is partially hydrogenated in a factory would be restricted. The two options available to restaurants would be they could switch to non-hydrogenated oils or use their current oils if they contribute less than 0.5 gram of trans fat per servings. Officials in Chicago said that representatives would visit New York to observe the response to its voluntary program. Lawmakers in Chicago are considering a voluntary trans-fat-reduction effort as an alternative to a mandate.

BOB EVANS FARMS INC.’s chairman of chain operator and food manufacturer, ROBERT E.H. RABOLD, died of a heart attack last month at age 67. He joined the board of Bob Evans in 1994 and was named the Columbus company’s first non executive chairman last year, when he was instrumental in recruiting Steve Davis as its new chief executive.

With locations throughout the Midwest, the operator of 15 namesake casual-dining restaurants, GRANITE CITY FOOD & BREWERY LTD., entered into a $16 million equipment lease facility with DHW LEASING LLC to help equip brewpub eateries slated to open next year and in 2008. STEVE WAGENHEIM, the company’s president and chief executive officer, said the financing package “creates a path to profitability and the opportunity to pass the $100 million revenue mark next year, allowing us the flexibility to self-fund our growth.”

Last month, CARROLS HOLDINGS CORP. registered for a $210 million initial public offering of common stock with the SECURITIES & EXCHANGE COMMISSION. Carrols Holdings Corp. is BURGER KING’s largest franchisee with 330 franchised units and is also an operator and franchisor of 239 restaurants under the POLLO TROPICAL and TACO CABANA brands. The filing comes about four months after Burger King’s franchisor, Burger King Holdings Inc., completed its own IPO. Carrols said it plans to trade on the Nasdaq exchange and said it would use the offering’s net proceeds to repay debt.

An agreement was completed by BERTUCCI’S CORP., a 92-unit Italian casual-dinnerhouse chain in which they will purchase the 11-unit VINNY T’S OF BOSTON chain from BUCA INC. for $6.8 million. Buca is an operator of 93 family-style Buca di Beppo restaurants and they bought Vinny T’s for $18 million in 2001. Buca said at the end of last year that it would either sell the chain or convert its outlets.

Attorneys for RONALD W. PARKER, former PIZZA INN president and chief executive, said that Parker will receive $2.8 million as part of a settlement reached with that chain, which previously had sued him for $9.4 million. In a statement issued by the law firm of CLOUSE DUNN KHOSHBIN, it said, “The agreement effectively amounts to a $12 million swing in Mr. Parker’s favor.” TIM TAFT, president and chief executive of Pizza Inn was quoted as saying that Parker had sought $10 million to $12 million to end all litigation, and that the locally based chain wished Parker well if he felt “vindicated” by the settlement outcome. Parker was fired by Pizza Inn in December 2004 amid allegations that he had been part of a “scheme” with a law firm that had drawn up his employment contract.

RANGE RESTAURANT GROUP, an upscale-casual steakhouse operator, is planning to debut its third CityRange Steakhouse Grill by early next year, at Ballantyne Corporate Park in Charlotte, N.C., according to CORY WILK, operating partner of the chain. CityRange was launched by Advantica Restaurant Systems Inc., a Denny’s Corp. predecessor, in 1998 and acquired by Wilk and investment partner Blake Kelley.

Three franchisees have signed a deal with BOSTON’S THE GOURMET PIZZA, a 195-unit casual-dining chain for the openings of a total of 14 restaurants in Southern California by the end of 2007. ABU SYED and BABAR SAGHIR would jointly open two locations and CURTIS FRALIN, president of INFINITY REDEVELOPMENT, would launch 10 Boston’s units. Boston’s vice president of marketing, HOWARD TERRY, said the chain’s first two California branches “are on track to be the highest sales volume restaurants in the entire Boston’s system.”

Local celebrity chef-operator KEVIN RATHBUN and partners CLIFF BRAMBLE and KIRK PARKS plan to debut KEVIN RATHBUN STEAK in the same Inman Park neighborhood following the success of his Rathbun’s which was launched two years ago and Krog Bar, launched 12 months ago. The new 180-seat restaurant will feature two private dining rooms, an open kitchen, and a wine cellar with an extended wine tower.

STARBUCKS CORP. announced last month that it will raise the prices of all made- or poured-to-order beverages by 5 cents each, an average of 1.9 percent, effective Oct. 3 at company-operated coffeehouses in the United States and Canada. The last time drink prices were raised was in October 2004. The company said the increase, which was necessitated by rising costs, including fuel and energy, will not affect refrigerated or bottled drinks sold at Starbucks Coffee outlets. Additionally, the chain will also raise most bean prices by about 50 cents per pound, the first such increase in nine years.

JIM SKINNER, vice chairman and chief executive of MCDONALD’S CORP. told an investment conference in San Francisco that a “next-generation...Flexible Operating Platform” kitchen system is being developed by the company. Such a system could allow the chain to offer breakfast all day long, enable additional menu variety and efficiencies, and permit “more transparency” for customers’ viewing of cooking processes. However, McDonald’s corporate communications vice president WALT RIKER, issued a clarifying statement saying that the system described by Skinner was “theoretical” and “still years away from potentially getting into McDonald’s restaurants,” with “no commitments or timetables for implementation.”

A new fast-casual concept called CONEY BEACH is being launched by DAVID and CAMILLE RUTKAUSKAS, founders of the 100-unit fast-casual chain CAMILLE’S SIDEWALK CAFE. Featuring 40 to 50 topping options, for up to 300 versions, the new prototype is slated to open next April in Tulsa, Oklahoma. BEAUTIFUL BRANDS INTERNATIONAL, formed by the Rutkauskases, will be the parent company to both Coney Beach and Camille’s.

A class action lawsuit was filed against CAFÉ EXPRESS and its Dublin, Ohio-based parent, WENDY’S INTERNATIONAL INC., by some 100 recently fired undocumented aliens for the mishandling of paperwork that could have made them legally able to work. Allegedly, the suit filed by the law firm of HOWIE, BROOME & BOBO LLP of Dallas, claims that the restaurant operators and a law firm, BOYAR & MILLER of Houston, missed a 2001 deadline for the forms and documents needed to make them permanent U.S. residents. Additionally, the suit claims that the company deducted $25 a week from workers’ paychecks to pay the law firm to handle the applications.

According to a forecast by TECHNOMIC INC., a Chicago research for the INTERNATIONAL FOODSERVICE MANUFACTURERS ASSOCIATION, the nation’s 900,000-plus eating and drinking places will split a $19.1 billion increase in industry wide sales next year.

An agreement was made by DIEDRICH COFFEE INC. to sell 40 of its 47 company-owned coffeehouses to STARBUCKS CORP. for $13.5 million. Officials at Diedrich said they plan to concentrate more on growth of their wholesale coffee division, although franchising of the Gloria Jean’s and Diedrich chains will continue. Following shareholder approval of the deal, Starbucks plans to convert the acquired outlets to their own brand.

A development deal for six restaurants in Saudi Arabia was executed between ROMACORP INC., which operates or franchises 222 Tony Roma’s units, and FOOD AND ENTERTAINMENT CO. LTD. of Riyadh, Saudi Arabia. Also an operator of Cinnabon, Carvel and Seattle’s Best Coffee units, the new franchisee is a subsidiary of the AL HOKAIR group, a Saudi real estate-retail-mall developer.

A court in Albany, NY ruled that the state labor department had not followed correct procedures before deciding last year to increase the wage which gives the NEW YORK STATE RESTAURANT ASSOCIATION a boost in its lawsuit to exclude tipped workers from future hikes in the state’s hourly minimum wage. While the judge agreed with the NYSRA’s claim that the department had failed to consider public comments before reaching its decision, the court rejected the NYSRA’s recommendation that the state be ordered to convene a new Wage Board and begin the process again. A 15-day comment period will be available where restaurateurs can voice opinions about the state’s minimum-wage policy instead.

After filing for Chapter 11 bankruptcy protection at the end of August, SPECTRUM RESTAURANT GROUP has placed the 84-unit Grandy’s chicken chain for sale. ANWAR SOLIMAN, principal owner, resigned as chief executive as part of the intended reorganization. TONY WOLF, a turnaround specialist who was formerly with Glass & Associates in Dallas, was named CEO.

A bill was singed by Gov. ARNOLD SCHWARZENEGGER to raise the hourly minimum wage beginning this month by $1.25 over the next 15 months in California and is expected to cost employers an estimated $2.6 billion more per year. The last minimum wage increase in California was in 2002.

Antitrust clearance was granted by the Federal Trade Commission to PERSHING SQUARE CAPITAL MANAGEMENT LP for their three funds to buy more than $793.8 million of the common stock of MCDONALD’S CORP. Early last month, McDonald’s disclosed in a securities filing that the hedge fund founded by activist investor, WILLIAM ACKMAN, New York-based Pershing, had given notice of its intent to purchase the shares.

MCDONALD’S CORP. started the process of divesting its remaining 88-percent stake in CHIPOTLE MEXICAN GRILL INC. through a stock swap that will continue through Oct. 5 that will also lower the number of McDonald’s shares outstanding. The company said it would trade a part of a Class B common share in Chipotle, not to exceed 0.9157 shares, for each share of McDonald’s that is offered, with possibly resulting in the non-cash buyback of just fewer than 16.5 million McDonald’s shares.

Last month, BACK YARD BURGERS INC. reversed its rejection of a confidentiality agreement proposed by a would-be buyout group and signed a privacy pact with investors who include former Sonic Corp. and Shoney’s Inc. chairman and chief executive C. STEPHEN LYNN. REID ZEISING, chairman of BBAC LLC, and Back Yard Burgers founder and chairman, LATTIMORE MICHAEL, signed the confidentiality contract which gives BBAC permission to review the 172-unit chain’s non-public documents. Previously, BBAC, which includes Lynn and CHEROKEE ADVISORS LLC, had offered $6.10 per share to buy the Back Yard Burgers shares it didn’t already hold, however, Back Yard said its board would not review the offer because terms of the confidentiality agreement were “unacceptable.”

A joint venture partnership has been formed between SBARRO, the Italian quick-service company and RTC, SBARRO RESTAURANTS (INDIA) LTD. Over the next 10 years, the partners plan to open 100 Sbarro outlets in India with the first branch expected to debut in New Delhi by 2007. Because of religious and ethnic preferences, Sbarro plans to modify dishes by offering new vegetarian items and not use beef products.

In a report released by Reuters, analysts guessed that a private-equity firm or such U.S. companies as YUM BRANDS or PAPA JOHN’S INTERNATIONAL was the unnamed party that GONDOLA HOLDINGS PLC said had proposed a possible $1.1 billion buyout of the 504-restaurant pizza-pasta operator. It was noted by British analysts that Yum had recently agreed to buy out joint-venture partner Whitbread PLC’s 50-percent stake in the U.K.’s Pizza Hut system, and Papa John’s had expressed a desire to increase its pizza chain in the country.

The first PLANET SMOOTHIE of nine planned Florida Gulf Coast units of Atlanta-based RAVING BRANDS , debuted in Pinellas Park and three additional openings are scheduled by year end in Bonita Springs, Estero and Naples. JASON MANN, master franchisee, said that another five units are under development in Tampa, St. Petersburg and Sarasota.

A new location of JAMBA JUICE, the 565-unit juice and smoothie chain, is scheduled to open in Kannapolis, N.C., in a TARGET retail store making it the second one that Jamba Juice has designed for Target. PAUL CLAYTON, chief executive of San Francisco-based Jamba Juice, said “Target and their core consumers of families are a perfect partner for the Jamba brand”.

SUBWAY has surpassed MCDONALD’S CORP. as the restaurant chain with the most U.S. locations with sites in non traditional locations accounting for 22% of the chain’s outlets. Because it has a simpler kitchen than traditional fast-food restaurants that require frying and grilling equipment, Subway has an easier time opening in unconventional locations such as inside a church in upstate New York, in coin-operated laundries in California, in a Goodwill Industries store in South Carolina, in a car dealership in Germany and in an appliance store in Venezuela. Other restaurants, though, have pulled back after trying nontraditional locations such as YUM! BRANDS, who stopped serving TACO BELL food in school cafeterias several years ago to focus on its conventional restaurants. While McDonald’s has some locations in hospitals and in Wal-Marts, the majority of its restaurants are still free-standing locations.

With increased competition for breakfast business from MCDONALD’S and DUNKIN’ DONUTS, coffee giant STARBUCKS plans to introduce a yogurt parfait designed as an option for customers "looking for a healthier light breakfast or afternoon snack," a spokesman said. The new item will be available in the market next month.

DUNKIN’ DONUTS is planning to open more than 10,000 stores around the country by 2020 as they compete with STARBUCKs who has 8,600 stores. Executives for the company said the new strategy was well underway before three private equity firms bought the company last year for $2.42 billion.

Sales at MCDONALD’S JAPAN are on the rise under the leadership of chief executive EIKOH HARADA. Outperforming a sluggish market for fast food, McDonald’s Japan posted increases in same-store sales of as much as 11.6% every month since February. For the first six months of the year, the company posted a 650% rise in operating profits to $10.7 million. Harada’s has introduced new sandwiches better tailored to Japanese tastes. After its launch last October, the Ebi Filet-o, a shrimp burger, generated sales of $10 million in the first three months and the salad plates introduced in the spring, called Salad Macs, are also a success despite the fact these items are higher priced. Harada wants to move further up market saying, “We have to graduate with our customers,” as McDonald’s now offers wireless Internet service at 2,660 restaurants.

JOSEPH P. FRANCIS, who began his "career" as a headhunter working for Hotelman's, passed away last month. After serving in the U.S. Navy, he worked for Michael Todd Productions, the Beverly Hills Hotel and retired reluctantly due to loss of sight in 1998 from Hospitality International.

As agency of record for FARMER BOYS RESTAUANTS, White Barn Group’s scope of work will include branding, menu consulting, broadcast creative, media buying, packaging design and strategic alliances for the 54 unit brand.

IT’S A GRIND coffeehouse which opened in 1995 in Long Beach, California is aiming to become the No. 2 coffeehouse player in the United States following Seattle-based Starbucks. There are 87 It’s A Grind units at present and the company has plans to reach 135 by the end of the year. Other coffeehouses are also vying for the number 2 spot include Minneapolis-based Caribou Coffee, Los Angeles-based The Coffee Bean & Tea Leaf, Coffee Beanery, based in Flushing, Mich., Diedrich Coffee Inc., based in Irvine, Calif., and Dutch Bros. Coffee, based in Grants Pass, Oregon. It's a Grind offers high-quality micro-roasted, ground-to-brew coffees from around the world. The atmosphere is comfortable with wingback chairs, wireless Internet access and hand-selected music. There are even fireplaces and live music in some units with puzzles and games in the kid’s area.

A fourth-quarter net loss of $3.1 million was reported by wholesaler DIEDRICH COFFEE INC., versus a loss of $1 million for the same quarter a year earlier, despite a 12.4-percent jump in revenues to $18.3 million. Diedrich Coffee Inc. also is operator and franchisor of about 200 Diedrich, Gloria Jean’s and Coffee People coffeehouses.

Before closing at $39.82, a 52-week high, MCDONALD’S CORP. shares broke the $40 mark on word that the company was raising its annual dividend 49 percent, to $1, and nearly doubling to $10 billion its planned payouts to shareholders in the form of dividends and stock buybacks over the next two years.

Larger than expected year-over-year increases in beef costs are expected to cut into third-quarter profit at RUTH’S CHRIS STEAK HOUSE INC., operator and franchisor of 95 upscale steakhouses, despite a projected revenue increase of about 27 percent.

For the four weeks ended Sept. 22, CBRL GROUP INC. reported samestore sales gains at both its CRACKER BARREL OLD COUNTRY STORE and LOGAN’S ROADHOUSE brands. The gains were helped by higher average checks and higher menu prices.

In its modified dutch auction tender offer for its common stock, SONIC CORP., owner and franchisor of 3,200 namesake drive-ins, is increasing the purchase price and decreasing the number of shares sought.

According to the company, RARE HOSPITALITY INTERNATIONAL INC., operator and franchisor of 323 restaurants, said that it would exit the BUGABOO CREEK STEAK HOUSE business through a possible sale of the 32-unit chain; recapitalize corporate debt to fund a $125 million share buyback; and hasten the growth of its now 25-unit Capital Grille concept starting next year.

Second-quarter profits at CKE RESTAURANTS INC. jumped 68.3 percent versus year-earlier results on 4.5-percent jump in revenues to $376 million and lower operating costs at both Carl’s Jr. and Hardee’s. Net income for the quarter ended Aug. 14 was $14.2 million versus $8.4 million a year before.

A fourth-quarter net loss of $2.7 million was posted by BUFFETS INC., operator and franchisor of 350 Old Country and HomeTown buffets and nine Tahoe Joe’s steakhouses on asset impairment and closure charges for the closure of 19 restaurants versus a loss of $1.6 million a year earlier.

For the fiscal year ended June 28 Buffets’ net loss was $4.8 million, versus $2.2 million in fiscal 2005. Sales for the fourth quarter dipped 0.6 percent to $225.6 million, but full-year sales rose 3.9 percent to $963.2 million. Same-store sales for the fourth quarter increased 1.2 percent and were up 4.6 percent for the year.

A 3.5-percent increase in its first-quarter profit on revenues that rose 3.3 percent to $1.46 billion was reported by DARDEN RESTAURANTS INC., owner and operator of 1,431 restaurants under five casual-dining brands. For the company’s fiscal year 2007 first quarter ended Aug. 27, earnings were $88.5 million versus $85.5 million last year.

Third-quarter blended same-store sales at YUM! BRANDS INC. U.S.-based restaurants are expected to be down 2 percent from a year earlier, reflecting declines of 2 percent at Taco Bell, 5 percent at Pizza Hut and no change at KFC.

According to the company, a $775 million credit agreement was signed by SONIC CORP., operator and franchisor of about 3,200 drive-ins, that includes funding for its $560 million share buyback and debt refinancing.

The YUM! BRANDS INC. stock repurchase program was boosted to a total of $1.5 billion when they added $500 million. Valid for up to 12 months, the latest buyback authorization is in addition to Yum’s $500 million share buyback approved in March, which followed a $500 million authorization last November.

PIRATE CAPITAL did not conform to regulatory rules in failing to report the transactions until after it was told it must by the SEC. The $1.8 billion hedge fund sold the last of its 3.9 million shares of Outback Steakhouse parent, OSI RESTAURANT PARTNERS, a month ago after unsuccessfully pressuring the company to divest its three largest non-Outback brands. SEC’s rules require disclosures whenever investors’ equity in a company rises above or falls below 5 percent.

Indicating that they must still restate other financial results, KRISPY KREME DOUGHNUTS INC. informed regulators that they were not able to file results for the July 30-ended second quarter of their fiscal 2007.

A 6-percent year-over-year rise was reported by MCDONALD’S CORP. in August same-store sales for its namesake chain worldwide, including a 3.5-percent U.S. increase. According to the company, domestic sales were boosted by its newest product launch, the Snack Wrap, along with the continued popularity of breakfast items.

A second-quarter net loss of $3.87 million on revenues of $123.2 million was reported by DAVE & BUSTER’S INC., the 47-unit operator of restaurant-entertainment complexes acquired in by an affiliate of WELLSPRING CAPITAL MANAGEMENT LLC, in March.

For the four weeks ended Aug. 30, BRINKER INTERNATIONAL INC. reported that comparable-store sales had decreased by a blended 2.6 percent for its four brands with the biggest decline coming from their 1,200-unit Chili’s Grill & Bar. Same-store sales were off 2.8 percent versus year earlier results.

Higher fuel and utility costs, rising interests and lower consumer spending levels were blamed for the net loss of $1.6 million at CHAMPPS ENTERTAINMENT INC., operator and franchisor of 50 sports and entertainment restaurants, for the fiscal year that ended July 2.

Systemwide same-store sales at PANERA BREAD CO. rose 1.3 percent for the five weeks ended Aug. 29 as sales at franchised unit grew at more than double the rate of company-owned stores — 1.5 percent versus 0.7 percent.

A 5-percent decline in third-quarter revenues was posted by MAX & ERMA’S RESTAURANTS INC., operator and franchisor of about 100 casual-dining restaurants compared with year-earlier results, yielding a net loss of $295,000 for the period ended Aug. 6.

Same-store sales for fiscal August, ended Sept. 3 at WENDY’S INTERNATIONAL INC. rose 4.7 percent at domestic Wendy’s-owned branches. Wendy’s interim CEO, KERRII ANDERSON, noted that second-quarter results had marked “the best samestore sales period for the Wendy’s brand in more than a year and a half, and the third quarter is off to an even better start.”

According to the company, RYAN’S RESTAURANT GROUP INC. said cheaper gasoline in August had helped to moderate declining average-weekly and same-store sales at the company’s 333 grill buffet units in the Southeast and Midwest.

Same-store sales for the four weeks ended Aug. 25 at BOB EVANS FARMS INC. fell 4.2 percent at its Bob Evans chain, whose average menu prices were up 3.0 percent for the period.

For the fiscal month ended Aug. 28, the SMITH & WOLLENSKY RESTAURANT GROUP INC. announced that its consolidated restaurant sales were approximately $8.3 million, a 5.3-percent increase from the year-ago period.

A stock buyback program of about U.S. $181 million, not to exceed 5 percent of the company’s current outstanding common shares has been approved by the board of directors for TIM HORTONS INC. and the stock repurchases will be made at management’s discretion over the next 12 months on either the New York or Toronto stock exchanges.

For the six months ended June 30, HARD ROCK INTERNATIONAL reported an 11.4-percent year-over-year increase in operating profits on a 7-percent rise in revenues to $240.8 million and cited strong results from marketing and operations initiatives.

Only One Chance to Make that Good First Impression

By: Bettie Biehn

The content, format, grammar, spelling, and accuracy are all very important to your resume. But the way it looks is equally important. When a hiring manager sees your resume for the first time, he/she is generally seeing his/her first representation of YOU. And that first representation, that first impression, absolutely needs to not only speak well for you, but also has to look good. Very good.

When I see resumes from my clients, or those that come across my desk in my role as HR Director, I’m instantly struck by the way they look. If they are jumbled, with little white space, or if the writer has used several different, and incompatible fonts, I think “hmmm, this person didn’t think about the impact of this document”. If, however, I see a neat, clean, consistently written and formatted document, my first opinions are much more positive.

I have seen resumes that went on for more pages than they should have – in most cases, two (2) pages should do quite well – and my immediate reaction is “whoa, way too much verbiage”. This length of resume rule applies for most people; for those seeking jobs in academia or those who have published extensively, several more pages may be acceptable – compare notes with others in your field for opinions.

The best way to gauge how your resume will be received, i.e. how it looks and reads, is to ask some friends/family/colleagues to look, read, and give you feedback. Honest feedback. As much as I emphasize this to my clients and column readers, I did not do this initially. But I finally swallowed my pride, and gave my resume to several recruiters who are colleagues – folks who see dozens of resumes daily. They gave me excellent feedback, and even though it was painful to hear, I learned from them.

Your resume is your first chance to make a good impression with a hiring employer. The better it looks, the more they’ll read – and the better the content, the more chances you have for an interview. My Mom used to say that dressing professionally helps one to behave professionally. I say that this adage goes for resumes as well.

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, Mid Atlantic
2. COO, Quick Casual, South
3. Chief Purchasing Officer, Latin America
4. VP Construction, Midwest
5. VP Franchising, West Coast
6. VP Operations, West
7. Director of Franchise Development, Midwest
8. Director of Franchise Development, Northeast
9. Director of Manufacturing, Northeast
10. Director of Operations, Various

Referrals are the lifeblood of our business. If you know of anyone who may be interested in one of these situations, we would be happy to review their credentials.

With restaurant sales expected to reach $511 billion this year, more business owners are considering ways to increase their turnaround time at tables as well as save money in the process. The latest device developed by Micros Systems and VeriFone allows diners to pay for their meals without leaving their table. They can swipe their debit cards, punch in their personal Identification number and take their receipt without the interaction of anyone else. This system is currently being tested at the POTOMAC PIZZA restaurant in Gaithersburg, Md. and will be launched at other restaurants in the United States over the next two months. HUDSON RIEHLE, senior vice president of research and information services for the National Restaurant Association in Washington said, “You really are going to see in the years ahead much more emphasis on tabletop payment systems as well as ordering systems. And it really is a rapidly evolving area, which is a win-win situation for both the customer and the operator.” While there is concern by some that the Pay at the Table system will not be accepted because consumer fear of online identity theft, co-executive director of the Identify Theft Resource Center in San Diego, JAY FOLEY, feels that tabletop payment technology “really eliminates the probability of skimming, because for the customer, his credit card never leaves his sight and he becomes exceptionally happy about that.”

Hotels continue to form alliances with well know chefs and in some cases are hiring them as consultants as they see food and beverage operations as a way to increase profits. STARWOOD HOTELS AND RESORTS WORLDWIDE, which operates approximately 845 hotels worldwide, and CATTERTON PARTNERS, a private equity firm, have joined celebrity chef Jean-Georges Vongerichten in a restaurant development business. According to Javier Benito, executive vice president and chief marketing officer for Starwood, “We felt Jean-Georges was ideal, because he’s created some very successful brands on his own – one of them being, for example, Spice Market, which is one of the brands we acquired with this agreement.” The LOEWS HOTELS hired Emeril Lagasse to open restaurants at two of its hotels and the number of meals served each day per occupied room grew to 2.04 from 1.6 according to Loews. THE FOUR SEASONS HOTEL NEW YORK, formed a partnership with chef Joel Robuchon who opened a branch of L’Atelier de Joel Robuchon at the hotel this year. While the hotel will continue to operate the restaurant Robuchon, hired as a consultant, visits the Four Seasons several days a month, bringing along his personally trained chefs. According to Christoph Schmidinger, the hotel’s general manager, “He ensures that we deliver his cuisine according to his vision and his style and his quality.” With chefs continuing to form partnerships with hotels in which they open restaurants, it may not be long before some of these chefs’ names appear on the hotel marquees according to some hotel consultants.

At the RENAISSANCE CHICAGO O’HARE SUITES HOTEL, guests who dine alone in the hotel’s Fresh Market restaurant can get a personal DVD player and watch comedies from a large selection of television programs. According to MARK ZETTL, the general manager, “Sixty percent of our guests travel without a companion.”

Competition continues to intensify between a number of casino owners in Macau, a tiny area of Chinese territory near Hong Kong. Macau is presently home to a Las Vegas SANDS casino and a recently opened $1.2 billion WYNN MACAU and with more than a dozen casino projects in the works between now and 2010.