Executive Movements January 2008
WINSTON-SALEM , N.C. — Krispy Kreme Doughnuts Inc. said today that president and chief executive Daryl G. Brewster has resigned for personal reasons after less than two years on the job. Krispy Kreme’s board elected chairman James H. Morgan to fill his positions.
The operator or franchisor of 411 doughnut shops said Morgan’s move was not an interim appointment and that he would assume Brewster’s positions “for the foreseeable future.”
Brewster’s resignation is the latest chapter in Krispy Kreme’s struggle to turn around its business after sales and profits began to slide in 2004. The company has been the subject of franchisee lawsuits and federal inquiries into its accounting practices.
Last year, Krispy Kreme caught up with its regulatory filing obligations, but the company has continued to report losses and several franchisees reported bankruptcy.
Steps to orchestrate a turnaround have included closing underperforming units, reducing corporate costs and opening units with smaller footprints to increase market penetration.
Morgan has been a director on Krispy Kreme’s board since 2000 and was elected chairman in 2005 following Scott A. Livengood’s resignation in 2005 amid the company’s legal and financial woes.
Morgan said in a statement: “I look forward to my expanded role with Krispy Kreme and to working with the company's management team and transformed board of directors to address the current challenges that face us as well as ongoing opportunities.
Brewster was named president and CEO of Krispy Kreme in March 2006, replacing interim leader Stephen F. Cooper, the chairman of turnaround firm Kroll Zolfo Cooper LLC. Previously, Brewster had led Kraft Foods Inc.’s snacks and cereals division for North America.
Krispy Kreme said in a separate announcement Monday that all of its menu items now have zero grams trans fat after several months of being tested in markets across the country.
Winston-Salem-based Krispy Kreme currently operates throughout the United States and 12 other countries.
DALLAS — LA MADELEINE BAKERY, CAFE & BISTRO has named MICHAEL R. SHUMSKY chief executive of the 61-unit chain. Shumsky succeeds Greg Buchanan, who left in August to become chief executive at Buffet Partners Holding Co., parent of the Furr’s cafeteria chain. Shumsky most recently was chairman and CEO of Johnny Rockets Group Inc. Jean-Roch Vachon, chairman of La Madeleine, said, “Michael’s vast experience in this industry will be valuable as we move the company forward. We are looking forward to his leadership and the opportunities for growth that he will bring la Madeleine.”
Shumsky also served as president for three years of Sonic Restaurants Inc. and he started his career at Taco Bell. Shumsky said in a statement: “I’m looking forward to the challenge. La Madeleine has such a rare opportunity for growth. It’s a unique brand with so many distinctive guest touch points. Breakfast, lunch, dinner, catering and retail are all well-positioned for future opportunities in same store growth, as well as new development as we expand the concept.”
THE COLONY, Texas — JOE BRINK, former director of research and development and Grandy´s in Dallas, is now in charge of purchasing and distribution for PIZZA INN, based here. One of his first tasks is extending the 365–unit chain’s line of pizza desserts. In February, the company will be rolling out four Chocolate Temptation Pizzerts — double chocolate, chocolate cherry, rocky road and s´more.
LOUISVILLE, Ky. — YUM! BRANDS INC. has appointed 12-year company veteran ROGER EATON chief operating and development officer-designate. Eaton, 47, will replace PETER HEARL, 55, who said he would retire from the Taco Bell and KFC parent at the end of March. A 17-year veteran of Yum, Hearl assumed his current position 13 months ago. Eaton, senior vice president and managing director of Yum Restaurants International South Pacific since 2000, also has served since 2006 on the company’s Partner’s Council, which is described as an in-house think tank. He will report to David Novak, Yum’s chairman and chief executive. During Eaton’s time with SOPAC, the operation posted 27 consecutive quarters of same-store sales growth and exceeded its targets for restaurant openings.
COLUMBUS, Ohio — BOB EVANS FARMS INC. has named HERBERT BILLINGER executive vice president of operations, productivity and integration at MIMI’S CAFE, where he also will oversee real estate functions. Billinger joins the casual-dining chain from KFC, where he served as vice president of operations and senior director of franchise operations. Earlier, Billinger spent 12 years at Pizza Hut, rising to director of company operations. Both KFC and Pizza Hut are holdings of Yum! Brands Inc. Billinger reports to Tim Pulido, who became Mimi’s president on Dec. 3. Bob Evans Farms, based here, operates 579 Bob Evans family restaurants and 118 Mimi’s Cafes.- THE COLONY, Texas — PIZZA INN INC. has named chief financial officer CHARLIE MORRISON president and chief executive of the 338-unit chain. Morrison had been serving in those roles on an interim basis since Tim Taft resigned in August. Before he joined Pizza Inn as CFO in January, Morrison was president of Metromedia Restaurant Group’s Steak & Ale and Tavern restaurants.
ATLANTA, GA — In another high-level executive change at AFC ENTERPRISES INC., JAMES W. LYONS has resigned as chief operating officer “to pursue another business opportunity,” the parent of POPEYES CHICKEN & BISCUITS said Thursday. Lyons will stay on through the end of the month to help with the transition, the company said in a statement. Lyons, who has been with the company since 2004, was promoted to the COO post earlier this year. His resignation closely follows the retirement of AFC founder Frank J. Belatti, who was succeeded as chairman by one-time KFC chief John Cranor, and the appointment of former KFC president Cheryl A. Bachelder as chief executive. Bachelder was also named president of Popeyes.
MANASQUAN, N.J. — JERSEY MIKE’S FRANCHISE SYSTEMS said it has named Domino’s Pizza veteran HOYT JONES president of the 335-unit sandwich chain. The role of president had been held by founder PETER CANCRO, who retains his post as chief executive. Jones most recently was executive vice president of domestic franchise operations for Domino’s, where he had worked for more than 20 years. In his new role, he will be responsible for “leading the next phase of development” for Jersey Mike’s, the company said in a statement. “We are adding an enhanced level of expertise and franchise realization to our premium brand while focusing on an innovative business model to launch our comprehensive growth strategy,” Cancro said in the statement. Jersey Mike’s also appointed JOSEPHINE CAPOZZI to the newly created post of vice president of franchisee relations. Capozzi previously was service adviser for Meridian Health.s. Focus Brands also franchises units of Seattle´s Best Coffee on military bases and in certain international markets.
AUSTIN, Texas — Retailing veteran KELLY RODDY has been named president of 365–unit SCHLOTZSKY´S, replacing STEVE ROMANIELLO, who remains president and chief executive of the sandwich brand´s parent company, FOCUS BRANDS INC. Romaniello had been at the helm of the Austinbased fast–casual concept since Focus Brands acquired it in November 2006. Focus Brands said in a statement that it had been seeking a “growth–oriented, proven leader” to develop the Schlotzsky´s concept, with plans for 50 new units in 2008. Roddy´s career includes stints at H–E–B Grocery Co., Scholastic Corp. and Wal–Mart Stores Inc. Atlanta–based Focus Brands operates or franchises more than 2,000 restaurants under the Schlotzsky´s, Carvel, Cinnabon and Moe´s Southwest Grill brands. Focus Brands also franchises units of Seattle´s Best Coffee on military bases and in certain international markets.
WAYZATA, Minn. — DAVID GORONKIN, who stepped down this week as president and chief executive of FAMOUS DAVE´S OF AMERICA INC., will take on those same roles, effective Jan. 7, at REDSTONE AMERICAN GRILL, the casual–dinnerhouse chain said Wednesday. Created by CHAMPPS founder DEAN VLAHOS, Wayzata–based Redstone American Grill has four units in three states and recently raised $10 million to fund its expansion plans, which likely will include more units on the East Coast, according to a report in the Minneapolis/St. Paul Business Journal. Famous Dave´s said Tuesday that Goronkin was resigning to “pursue other interests.” Filling Goronkin´s posts on an interim basis will be Famous Dave´s director F. LANE CARDWELL, the Minneapolis–based barbecue chain said.
HEATHROW, Fla. — RUTH´S CHRIS STEAK HOUSE INC. said Tuesday that senior vice president and chief financial officer THOMAS J. PENNISON JR. is leaving the company to pursue other interests in his home state of Louisiana. Pennison, an 11–year veteran of the steakhouse company, will remain with the company until his replacement is found. Chief executive CRAIG S. MILLER said the company hopes to have the position filled by early next year. Ruth´s Chris relocated its headquarters to this suburb of Orlando from Metairie, La., after Hurricane Katrina ravaged the area in 2005. Ruth's Chris operates or franchises 116 namesake steakhouses.
MINNEAPOLIS — F. LANE CARDWELL will succeed DAVID GORONKIN as president and chief executive of FAMOUS DAVE´S OF AMERICA INC. on an interim basis starting Dec. 13, the operator or franchisor of 157 barbecue restaurants said late Tuesday. The company said Goronkin resigned to pursue other interests, which were not detailed in the announcement. He also will step down as a director, Famous Dave´s said. The appointment of Cardwell, a member of Famous Dave´s board, was in accordance with the company´s previously adopted succession plan, it said. He is expected to serve as CEO on a short–term basis while a permanent replacement is found. Cardwell has more than 28 years of experience in the restaurant industry, including time as president of the Eatzi´s takeout concept while it was operated by Brinker International Inc. He is also one of three industry veterans who formed a restaurant–focused investment vehicle, THE CHAIN GANG, whose principals recently have indicated that it may be about to make an acquisition.