Your Recruiting Process Reflects Your Company’s Image

Written by Bob Gershberg, Managing Partner
Dick Wray Executive Search

We in the hospitality industry are driven to delight our guests. We roll out the red carpet for the chap buying his morning cup of coffee. We do somersaults to serve up a San Pellegrino, no ice with lemon to the classy lady at the bar. And heaven knows we will bring service to unparalleled levels when the jovial four top orders that second bottle of Pinot Noir. How is it then, we so often treat the six-figure executive who has shown great interest in joining our team so poorly?

Facilitating the recruiting process from phone screen to job offer is cumbersome at best. Accommodating the busy schedules of both candidate and hiring authority can test any admin’s mettle. Add the burden of travel arrangements, flight delays and day to day snafus along with the gathering of feedback from the various parties involved, it is no wonder the process can become overwhelming. But wait….we are restaurant and hospitality folks. We thrive on an industry with lots of moving parts. We are best when challenged with a bit too much on our plates. The truth is we need to focus on treating the professionals interviewing with our companies as we do our guests.

It is said in the restaurant industry that each dissatisfied customer tells his tale of woe to at least six friends; they in turn each tell a few more with some minor embellishments, and they the same until the exponential effect is equal to upsetting 88 people. I suspect the candidate who goes without feedback for a couple of months might be talking “trash” about the hiring company to a few more than six friends or associates. And worse they may have all been regular customers at your restaurants.

Best practice companies need to align their recruiting process with the culture and class of the company itself. It is not easy to accomplish this goal while running and growing our complex operations, but it is imperative. To court and support those interested in joining our teams will serve us well. It is clearly worth the effort and as hospitality companies it is precisely what we do!

As we approach this holiday season, from all of us at the Dick Wray Group to all of you warmest wishes for good health and good cheer, peace and prosperity.

All the best,
Bob

Bob Gershberg, Managing Partner
bob.gershberg@dickwray.com

“Dick Wray Executive Search – Maintaining the same ethical recruiting standards for over 30 years.”

Bob Gershberg, 29 year veteran of the restaurant industry has been named Managing Partner of the venerable Dick Wray Executive Search Group. Gershberg, who founded and operated various quick service and fast casual restaurant chains, joined Dick Wray as Executive Vice-President in January, 2004. Dick Wray Executive Search has provided consultant and executive search services to the Restaurant, Hospitality, Food Service and Retail Industries since 1972.

“Bob has been an invaluable addition to our team. His ability to get his arms around the culture and leadership characteristics of our client companies in short order is remarkable. He understands the challenges facing the small emerging firms to those of the billion dollar brands as well as anyone I have ever come across.” said Dick Wray, Company Founder and Chairman.
“It is an honor to be named Managing Partner of Dick Wray Executive Search. The rich 34 year history of success both nationally and internationally with client and candidate relationships enables us to serve our core industries well, when their needs are greatest. It has long been and will continue to be our mission to do what hospitality industry folks do best….exceed our clients’ expectations!” commented Gershberg.

The Dick Wray Group is unique in that all of the partners and consultants are past executives from their specialty industries. “This clearly gives us an edge in partnering with our clients as we have personally lived and breathed their respective issues”, said Gershberg of the Group. “We too have developed a keen understanding of the various relevant disciplines having had numerous exposures while leading cross-functional teams,” he added.

Other recent additions to the Dick Wray Executive Search team are Orrick Nepomuceno, an accomplished culinarian, pastry chef and former president of a super-premium frozen dessert concept and Bill Grubbe, a 35 year veteran executive from the contract food service management world.

Dick Wray, CEO & Chairman
dick.wray@dickwray.com

BART MAHONEY has been named vice president of food and beverage at MGM MIRAGE’s Bellagio resort. He replaces WIN PERSON, who left the hotel earlier this year. Mahoney will oversee operations of the Bellagio’s eight fine-dining restaurants and 18 other outlets and formerly was food and beverage VP at sister hotel The Mirage.

A former executive at Sony Pictures Entertainment, ROMY MEHLMAN, has been hired by HARD ROCK INTERNATIONAL as regional director of marketing for the Western United States. Mehlman will lead marketing efforts including local café events, live music, sponsorships, grand openings and concerts. Prior to joining Hard Rock, Mehlman was director of worldwide market research for Sony’s Columbia TriStar Marketing Group.

LIEANN O’BRIEN was named executive director of the board by the INTERNATIONAL ASSOCIATION OF CULINARY PROFESSIONALS. Most recently she was executive director of Women Chefs and Restaurateurs. O’Brien replaces DANIEL MAYE, who retired after 16 years of service with the IACP.

NILS OKESON, corporate-governance specialist, joined ARBY’S RESTAURANT GROUP INC., owner and franchisor of 4,500 quick-service sandwich shops, as general counsel. Prior to Arby’s, Okeson was a partner in the Atlanta law firm ALSTON & BIRD.

Former chief of staff for House of Blues Entertainment Inc., ARICH BERGHAMMER, has been appointed by SBE ENTERTAINMENT GROUP to the position of chief operating officer for SBE Restaurant Group, based in Los Angeles. Designer PHILIPPE STARCK and SBE are developing nine restaurant concepts, including Katsuya, a sushi restaurant.

PETER TAN, a McDonald’s executive for 10 years, has been named to the newly created post of senior vice president and president for the Asia Pacific region by BURGER KING CORP. He will be based at the company’s regional headquarters in Singapore. Previously, he was McDonald’s corporate senior vice president and president for Greater China, where he was responsible for more than 1,250 restaurants in a region that included Hong Kong, Taiwan and Macau.

A division of MCDONALD’S CORP., CHIPOTLE, announced DAN FOGARTY resigned from his post as director of brand development. Chipotle spokesman Chris Arnold said, “We don’t foresee replacing him. His responsibilities will be absorbed by other people on staff.” In discussing Fogarty’s departure, Arnold also said, “He was ready to take his career in a different direction. It is possible that he will do some consulting work for us, but we have no formal arrangement.” Fogarty started working for the Chipotle Mexican Grill burrito specialty chain as a consultant in 1996 and joined the brand fulltime as marketing director about seven years ago, and was promoted to brand development director about three years ago.

ROBERT LEVITE was named by BURGER KING CORP. to a newly created post as vice president of field marketing for North America. Burger King said Levite will be responsible for providing brand leadership, improving marketing execution and driving guest satisfaction. He previously was a senior vice president of marketing for Wendy’s International.

ERIC SCHECHTER was named by SHELLS SEAFOOD RESTAURANTS INC. as development director to head the 26-unit chain’s real estate, construction and design operations. Schechter, will also oversee Shells’ unit remodeling and new restaurant development. He formerly was national construction, facilities and energy management director for Einstein Bagel Corp.

Nine-year veteran of CBRL GROUP INC. and its 537-unit subsidiary Cracker Barrel Old Country Store Inc., NORMAN HILL, has retired as human resources senior vice president. Cracker Barrel human resources senior vice president, ROBERT HARIG, succeeds Hill and will hold the same title at both entities.

MARK POSTON was promoted to president of BENNIGAN’S GRILL & TAVERN by METRO MEDIA RESTAURANT GROUP and will replace JAY WILLOUGHBY. Poston joined the company in January as vice president of concept renewal.

JOHN GAY was named senior vice president of government affairs and public policy by the NATIONAL RESTAURANT ASSOCIATION. Gay succeeds LEE CULPEPPER, who left the NRA in June to become vice president for federal government affairs at retail giant Wal-Mart Stores Inc. of Bentonville, Ark. He previously served as vice president for government affairs at the INTERNATIONAL FRANCHISE ASSOCIATION in Washington.

COREY NYMAN, formerly of Mesa Grill and Bobby Flay at Caesar’s has been hired by THE LIGHT GROUP as general manager for STACK RESTAURANTS & BAR, which is set to open in The Mirage in Las Vegas this month. Also, the company named JONATHAN GREGSON general manager of FIX RESTAURANT & BAR at the Las Vegas Bellagio. Previously Gregson worked at Olives Bellagio and Rick Moonen’s RM at Mandalay Bay.

Moving forward with plans to sell up to 18 percent of its Canadian TIM HORTONS brand, WENDY’S INTERNATIONAL said it could take up to $47 million in fourth-quarter charges related to the doughnut chain’s struggling U.S. operations, particularly in the Northeast. The necessary documents were filed by Tim Horton’s, which operates 2,800 coffee and doughnut shops to sell up to $600 million in stock in an initial offering slated for March 2006. Also, Wendy’s said it would take a $25 million pretax charge to write down goodwill from its $41.6 million acquisition of 42 BESS EATON donut shops in New England during 2004 as well as take a charge of $23 million to $28 million for closing 40 to 45 underperforming Wendy’s units.

According to the Atlanta Journal-Constitution, AFC ENTERPRISES INC. chairman, FRANK BELATTI sold 1.3 million of the approximately 2 million shares he held in the company for proceeds exceeding $15.8 million, however, he still holds 444,791 shares, and has another 194,476 shares in a trust for his children. Also, according to the Journal-Constitution, private equity firm FREEMAN SPOGLI & CO., another major AFC shareholder, sold shares totaling $17.6 million in value.

Approval has been secured by STEW LEONARD’S, the three-unit chain of sprawling food stores based in Norwalk, Conn., to include an 11,000-square-foot restaurant in a 44-acre retail complex it plans to open in nearby Orange in 2007. Stressing that the restaurant is just an option at this point, a spokeswoman said that an outside operator would be brought in to open and manage the high-end eatery.

RIPARIAN PARTNERS LTD., has been retained to represent DUNKIN’ DONUTS INDEPENDENT FRANCHISE OWNERS INC. as an “interested party” in the bidding to acquire DUNKIN’ BRANDS INC. from PERNOD RICARD SA. Riparian spokesman, BRENDAN VANDEVENTER, said: “There has been a great deal of interest from the financial and public restaurant community regarding this transaction. Those parties have expressed interest in the franchisee community and their position regarding the future of Dunkin’ Donuts.” French distiller, Pernod, acquired former Dunkin’ Brands parent Allied Domecq PLC in July and has accepted bids since then for the Canton, Mass.-based franchisor of the Dunkin’ Donuts, Baskin-Robbins and Togo’s brands.

The acquisition by TRIMARAN CAPITAL PARTNERS of the 330-unit quick-service chain EL POLLO LOCO has been completed. In a deal valued at $415 million, Trimaran purchased the Irvine-based franchisor from AMERICAN SECURITIES CAPITAL PARTNERS.

A master franchise deal for exclusive development in the Philippines was signed by CHURCH’S CHICKEN with WOW FOODS CORP., a unit of Manila-based ASIAMAX DEVELOPMENT CORP. INTERNATIONAL. JENNIFER CLARK, development specialist, said the deal marks the first of other Asian growth connections for the Church’s brand. The head of The Wow group, Filipino businessman GEORGE FONG, expects to open its first Church’s unit by May 2006. Fong is exploring mall sites initially and intends to “maximize” the brand’s development, but he did not say how many Church’s are planned.

As part of the refurbishment of luxury hotels operated by LXR LUXURY RESORTS, renowned British chef-operator, GORDON RAMSAY, is slated to open three restaurants in the United States, including two in Los Angeles. Known as the bad-boy host of the TV reality show “Hell’s Kitchen, ” Ramsay, will open his first U.S. venture in New York at The London NYC, formerly the Rihga Royal Hotel and is scheduled to open in late 2006. The restaurant will feature a fine-dining outlet and a more casual bar area. In 2007, Ramsay plans to open two restaurants in Los Angeles at what will become The London LA, formerly the Bel Age Hotel in West Hollywood, though the dining concepts have not yet been finalized. Ramsay owns and operates the three-Michelin-star Gordon Ramsay in Chelsea, in London, which has a second location in Claridge’s Hotel in Mayfair. Petrus and Boxwood Cafe in The Berkeley Hotel, The Savoy Grill and Banquette at The Savoy Hotel, and Menu and The Grill Room at The Connaught Hotel are Ramsay’s other London restaurants.

A franchise agreement was signed between TIN STAR, a 14-unit fast-casual chain based in Dallas with JERRY and DENISE CONWAY to open 10 outlets in the Austin, Texas, market. At present, the Conways franchise 57 Sonic Drive-In units in Texas.

With an expected opening date in February 2006, MICHAEL MINA is replacing the restaurant AQUA at the St. Regis Monarch Beach Resort & Spa in Danaoint, Calif. with a new concept called STONE HILL TAVERN. Previously Mina was executive chef of the acclaimed Aqua in San Francisco, but he split from the multiunit operator Aqua Development Corp. in 2002 to form Mina Group LLC, which operates Michael Mina Bellagio, Nobhill and Seablue in Las Vegas, in addition to Mina’s restaurant in the Westin St. Francis in San Francisco.

Hotel and restaurant operator, CRESCENT HOSPITALITY CORP., which franchises several restaurants under the brands Houlihan’s, Golden Corral and Boston Pizza, has agreed to operate the 50,000-square-foot indoor complex of water slides and pools at THE LODGE AT CEDAR CREEK, a 140-suite themed resort that Crescent will also run. Two restaurants are included in the park.

KRISPY KREME DOUGHNUTS INC., who hasn’t filed a financial report since September 2004, told securities regulators last month it is “highly unlikely” that financial statements it is required to provide to lenders by Dec. 15 will be completed by that time. Seeking to avert a default on its credit agreements, the operator or franchisor of about 350 factory stores and 70 satellite outlets said it is discussing a deadline extension with the lenders and expects to obtain one. Even so, the company has obtained about $225 million in new financing this year, though it has signaled that it expects to report financial losses because of sharply falling sales and costs stemming from regulatory problems and litigation. Krispy Kreme is under an accounting investigation by the Securities and Exchange Commission and a probe by federal prosecutors and also faces several lawsuits by shareholders, employees and franchisees.

The first Asian location of COLD STONE CREAMERY debuted in Tokyo, marking the chain’s “first step in an aggressive worldwide growth plan,” the company said. There are plans to open 150 stores in Tokyo by the end of 2009 with future growth plans to include expansion into such markets as South Korea, China, Taiwan, Canada and Mexico. Senior vice president of the Scottsdale-based company, LEE KNOWLTON, said “With such a successful opening of our first store in Asia, we’ve confirmed Cold Stone has worldwide appeal.”

BRINKER INTERNATIONAL’s former director of marketing, CHRIS DAHLANDER, from ROMANO’S MACARONI GRILL division, has plans to open SNAPPY SALADS in Dallas this month. The concept is a 2,000-square-foot fast-service soup and salad restaurant. Dahlander, president of the new company, said: “Snappy Salads is a place where you can park, personally pick the contents of your salad to match your diet needs, have it perfectly mixed together, and walk out with a delicious salad in three minutes.”

A Chinese franchisee’s territory has been expanded by RUTH’S CHRIS STEAK HOUSE INC., parent of the 90-unit upscale chain, to include the Japanese cities of Tokyo, Osaka and Fukuoka. Franchisees of the chain, WILLIAM and STANLEY KO, operate three Ruth’s Chris outlets in Taiwan and two in Hong Kong.

After significant renovations from damages sustained from Hurricane Katrina, the Metairie, La. location of RUTH’S CHRIS STEAK HOUSE INC. has reopened. The headquarters for the operator and franchisor of 90 upscale steakhouses was formerly located in Metairie, however, the corporate offices and support center was relocated to Orlando in the wake of the hurricane. The company’s Broad Street location in New Orleans remains closed indefinitely. In addition, in Biloxi, Miss., a newly built unit that was scheduled to debut Sept. 1., is not expected to open until late 2006.

The operator of 25 restaurants under four brands in eight states, STEAKHOUSE PARTNERS INC., has agreed to pay about $25.3 million for the outstanding common stock of ROADHOUSE GRILL INC. of Pompano Beach, Fla., whose 74-unit casual-dining chain in 10 states includes 12 licensed or franchised branches. The deal, subject to shareholder and regulatory approval, also depends on whether sufficient financing can be obtained by San Diego-based Steakhouse Partners, parent of the Hunter Steakhouse, Hungry Hunter, Carvers and Mountain Jack’s concepts. Steakhouse Partners’ chairman and chief executive, STONE DOUGLASS, predicted that the merger would yield more than $175 million in annual revenue and “significant synergies” to enable future expansion.

Last month, SUBWAY, operator and franchisor of more than 24,000 sandwich shops worldwide, debuted an outlet aboard the Empire Express, AMTRAK’s New York-to-Albany train. The outlet offers the pizzas, soups and desserts available on other Amtrak trains as well as subs. Amtrak said it will be paid a percentage of Subway’s sales, however they did not divulge the terms and they called the four-month pact with Subway a potential model for deals with other restaurant chains. However, after Union pressure, the program was stopped after only a few weeks.

An agreement was reached by MCDONALD’S VENTURES LLC to sell a 47.3-percent stake in REDBOX AUTOMATED RETAIL LLC, a supplier of automated DVD-rental kiosks, for $20 million to COINSTAR INC., the Bellevue, Wash.-based marketer of supermarket coin-counting stations. A wholly owned subsidiary of MCDONALD’S CORP., McDonald’s Ventures’ corporate and franchised restaurants account for many of Redbox’s 800 current installation sites.

In a federal court in White Plains, NY, the operators of more than two dozen DUNKIN’ DONUTS outlets pleaded guilty to not paying about $1.5 million in payroll and income taxes and other charges. According to the U.S. Attorney’s Office in Manhattan, brothers CONSTANTINE “GUS” GIANOPOULOS and ANASTASIOS “TOM” GIANAPOULOS also pleaded guilty to making false statements on loan statements. They jointly control Eastchester, N.Y.-based FOOD MANAGEMENT GROUP LLC. Both men face up to 30 year in prison.

In Basel, Switzerland, during the SALON CULINAIRE MONDIAL 2005, an international event held every six years, TEAM USA of the AMERICAN CULINARY FEDERATION earned a gold medal in the cold-food competition. Team members include Joachim Buchner, Richard Rosendale, Jamie Keating, Russell Scott, Patricia Nash and manager Edward G. Leonard.

TOM SPONSELLOR , president of the SOUTH CAROLINA HOSPITALITY ASSOCIATION said that the SCHA has gained 500 members by signing a contractual partnership with the MYRTLE BEACH AREA HOSPITALITY ASSOCIATION, the MYRTLE BEACH AREA CHAMBER OF COMMERCE, the NATIONAL RESTAURANT ASSOCIATION and the AMERICAN HOTEL& LODGING ASSOCIATION. The partnership, called a first-of its-kind affiliation between a chamber of commerce and local, state and national hospitality groups, provides for shared membership in the organizations. Sponsellor said that annual dues will decrease by as much as $5,000 for members of multiple groups, but will increase by “only a few hundred dollars” for single-group members.

Foodservice and facilities management company, ARAMARK, has obtained the right to begin stocking DUNKIN’ DONUTS coffee in the employee break rooms of companies serviced by the contractor’s REFRESHMENT SERVICES INC. operation. Coffee to employees is provided free by the in-office stations serviced by Aramark and will feature Dunkin’s Original Blend and decaf versions. Also, Dunkin’-branded cups and other break room materials will be provided.

The 100th restaurant of THE CHEESECAKE FACTORY INC. opened in Palm Beach Gardens, Fla. The brand began in Los Angeles 27 years ago.

Since partnering with founder SHANE THOMPSON last March, RAVING BRANDS, announced that the fast-casual SHANE’S RIB SHACK concept has grown to 11 operating locations. According to the group, by year-end, 18 additional Shane’s will open and that signed deals are in development in nine states for 75 more units.

JAMBA JUICE, the 515-unit, San Francisco-based juice and smoothie chain, announced that it will open branded kiosks in nine of SAFEWAY INC.’s Pavilions, Safeway and Vons supermarkets in Arizona, California, Colorado, Nevada and Washington. It has also licensed outlets in branches of the Whole Foods Market chain since 1998. Officials added that Jamba Juice’s electronic, reloadable Jamba card gift-and cash-replacement cards also will be sold at 500 Safeway stores in California. For Safeway, it’s another opportunity to increase sales.

CALIFORNIA SPEEDWAY, the motorsports facility, is preparing to debut a new and improved midway that will cater to NASCAR fans by including a full-service outdoor cafe operated by WOLFGANG PUCK CATERING, based in Los Angeles. The opening is scheduled for mid-2006. The café will include a grab-and-go, quick-service section and a table-service casual dining section offering salads, pizzas and pastas. Also, Wolfgang Puck Catering launched services at the new Georgia Aquarium which opened last month. There is a dedicated ballroom for catered events and a food court which Puck Catering will operate in partnership with RESTAURANT ASSOCIATES.

A 12-year contract was awarded last month to HMS HOST CORP., the airport concessions company, to operate food and beverage services at Spokane International Airport. HMS Host succeeds Buffalo, N.Y.-based DELAWARE NORTH COS. as the airport’s concessionaire. The deal calls for HMS Host to expand the number of foodservice outlets from four to eleven by 2006, including two Starbucks Coffee units in two separate terminals according to Airport sources. In the food court of the airport’s main rotunda there will be four other new restaurants including a branch of Spokane-based David’s Pizza, a Chili’s Grill & Bar, a Quiznos Sub shop and Vintage Washington, offering wines by local wineries.

The founder of LAMAR’S DONUTS died in his sleep at his home on Nov. 10 at the age of 89. RAY LAMAR opened the first LaMar’s Donuts in a converted gas station on Linwood Avenue 45 years ago. In the early 1990’s, Lamar and his wife, SHANNON, franchised the LaMar’s Donuts brand and eventually sold the franchising rights. The chain has 28 shops in seven states.

Saying that this is the first of many planned for the region, PAPA JOHN’S INTERNATIONAL INC. has opened a Papa John’s Pizza outlet in Schenzhen, China as the chain’s first in South China. Papa John’s has 15 branches in Shanghai and five in Beijing and is an operator and franchisor of 2,894 outlets worldwide, and franchisor of 113 Perfect Pizza units in the United Kingdom.

The largest contender in the growing Japanese dinnerhouse market, BENIHANA INC., has acquired a SAKURA teppanyaki-style restaurant in Tucson, Ariz., and intends to convert it to the Benihana format.. The company said that Sakura will continue to operate under that brand temporarily. There are two other Benihana units are under development.

SEAN MCCANN of CASTLE TECHNOLOGIES LTD.signed a franchise pact with KAHALA CORP., which calls for the opening of 20 SAMURAI SAM’S TERIYAKI GRILL locations through Nassau and Suffolk counties, N.Y., over the next 10 years. Kahala Corp. is an operator and franchisor more than 1,000 locations under eight concepts. Some of those concepts are Great Steak & Potato Co., TacoTime, Ranch One* Grilled Chicken and Surf City Squeeze.

Founders of two-unit Eddie V’s Edgewater Grille, GUY VILLAVASO and LARRY FOLES, have opened the upscale-casual WILDFISH SEAFOOD GRILLE in Newport Beach, Calif. Executive chef at the Eddie V’s units in Scottsdale and Austin, Texas, JOHN CARVER, holds the same position with Wildfish. A second unit is slated to open in Scottsdale early next year.

A fifth Nevada location of RED ROBIN GOURMET BURGERS, a 290-unit casual-dining chain, opened last month marking the second restaurant in Henderson, Nevada. In addition, the chain continued its Midwest expansion by opening its fifth Oklahoma restaurant in Owasso, Oklahoma.

A multi-unit area development agreement was signed between BANDANA’S BAR-B-Q and BANDANA’S 3D LLC for three restaurants in central Illinois with the first unit expected to open in the first quarter of 2006.

Many British pubs today are no longer considered just a watering hole offering peanuts and warm beer. Thanks to new tenants and extensive renovations, pubs, including the EBURY, which is owned by Enterprise Inns PLC, now offer lustrous seating, martinis and upscale meals. There has been a major shift in the $36 billion dollar pub industry with many of Britain’s 60,000 drinking establishments now owned by big chains. New owners are spending a significant amount of money upgrading their holdings and changing the very definition of what a pub is in Britain. JAMES AINLEY, director at Dreesdner Kleinwort Wasserstein in London, said, “Gone are the days when pubs were dominated by men drinking beer. Now pubs offer a much more attractive format for men and women, young and old.”

For the four weeks ended Nov. 26, YUM! BRANDS INC. reported a 6-percent increase in U.S. blended same-store sales compared with the comparable period a year earlier. Same-store sales increases in the November gain were 9 percent at domestic corporate Taco Bell units and 11 percent at domestic corporate KFC restaurants. At U.S.-based, Yum-operated Pizza Hut locations, though, comparable-store sales fell 3 percent. The international division of Yum’s reported a 3-percent systemwide sales gain in both local currencies and when converted to U.S. dollars for the four weeks ended Oct. 31.

For the four weeks ended Nov. 20, PAPA JOHN’S INTERNATIONAL INC. reported a systemwide same-store sales gain of 8.7 percent over last year with a same-store sales increase of 12 percent for corporate Papa John’s locations and a comparable-store gain of 7.8 percent at franchised units.

A systemwide same-store sales gain of 0.7 percent was reported by APPLEBEE’S INTERNATIONAL INC., operator and franchisor of 1,785 casual-dining restaurants for the four weeks ended Nov. 20. According to the company, for the November period, corporate units, mostly located in the Midwest, reported a same-store sales decline of 1.4 percent, reflecting a 4.5-percent to 5-percent decrease in guest traffic while franchised locations reported a same-store sales increase of 1.4 percent.

At the end of last month, MCCORMICK & SCHMICK’S SEAFOOD RESTAURANTS INC., operator of 59 upscale seafood restaurants, registered for the proposed sale of nearly 5.1 million shares of its common stock, with estimated net proceeds of $8.1 million marked for debt repayment and general corporate purposes. They plan to sell 380,000 shares while selling shareholders plan to offer more than 4.7 million shares.

For the four weeks ended Nov. 19, OUTBACK STEAKHOUSE INC., operator and franchisor of 1,288 restaurants, reported a 0.3-percent dip in systemwide same-store sales for its flagship Outback Steakhouse brand. According to the company, even though sales trends are improving, the 914-unit chain has reported negative same-store sales for six straight months.

The board of directors for YUM! BRANDS INC. has authorized a program to repurchase an additional $500 million of the company’s common stock during the next 12 months. The company, operator and franchisor of 34,000 restaurants, including the KFC, PIZZA HUT and TACO BELL chains, approved a separate $500 million stock repurchase plan in May, which Yum said is in the process of being completed.

For the five weeks ended Oct. 28, CBRL GROUP INC. said same-store restaurant sales had dipped 0.1 percent at its Cracker Barrel Old Country Store chain. Same-store gift shop sales at Cracker Barrel’s fell 14 percent. In addition, the company’s Logan’s Roadhouse chain’s same-restaurant sales edged up 0.8 percent.

A 14-percent drop in first-quarter net income to $25.7 million was reported by CBRL GROUP INC., operator of 538 Cracker Barrel Old Country Store restaurant and gift shops and operator and franchisor of 152 Logan’s Roadhouse restaurants. CBRL earned $29.9 million in the year-ago quarter

A 71.3 percent increase in second-quarter net income to $2.8 million was reported by BENIHANA INC., operator and franchisor of 96 Japanese restaurants, including the 80-unit namesake chain. Last year, in the same period, Benihana earned $1.7 million.

Operator and franchisor of 10,241 units worldwide, STARBUCKS CORP., reported a 20.6-percent jump in fourth-quarter net earnings on total revenues that grew 14.2 percent from a year earlier, to $1.66 billion at their Starbucks Coffee units. For the 13-week quarter, ended Oct. 2, profit totaled $123.7 million, up from $102.6 million for the 14-week fourth quarter in fiscal 2004.

The operator of 16 upscale restaurants, SMITH & WOLLENSKY RESTAURANT GROUP INC., reported a third quarter net loss of $2.9 million compared with a restated net loss of $3.2 million in the comparable period a year earlier.

For the 12 weeks ended Oct. 4, PANERA BREAD CO. reported record third-quarter earnings of $11.7 million, a 36-percent jump from year earlier profits.

For the four weeks ended Nov. 1, PANERA BREAD CO., operator or franchisor of more than 825 bakery-cafes, said systemwide same-store sales climbed 8.2 percent. At company-owned restaurants, same-store sales rose 8.1 percent and at franchised units, they rose 8.2 percent.

ARAMARK CORP., the foodservice and facilities management contractor, posted an 8.2-percent increase in fourth-quarter net earnings to $91.6 million on sales that rose 6.1 percent to $2.8 billion. For the quarter ended Sept. 30, sales for the company’s food and support service division increased 2 percent to $1.8 billion in the United Sates and 22 percent to $565 million abroad.

For the last four weeks of the third quarter, which ended Nov. 7, CKE RESTAURANTS INC., operator and franchisor of 1,032 Carl’s Jr. restaurants, 2,011 Hardee’s units and 100 La Salsa Fresh Mexican Grill outlets, reported that same-store sales rose 3.2 percent at Carl’s Jr., but fell 0.9 percent at Hardee’s.

In its third quarter ended Sept. 25, RUTH’S CHRIS STEAK HOUSE INC., operator and franchisor of 90 upscale restaurants, swung to positive territory and recorded a net profit of $1.2 million versus a year-earlier loss of $3.3 million. Operating income for the latest quarter for the company was $3.3 million, down 1 percent from a year earlier, reflecting $1.2 million in hurricane and relocation costs.

For the first quarter, ended Oct. 2, CHAMPPS ENTERTAINMENT INC., operator or franchisor of 66 casual-dining restaurants, posted a net loss of $206,000 compared with a profit of $1.2 million a year ago. Four restaurants were closed during the quarter a total of 11 days in Louisiana and Texas, as a result of hurricanes Katrina and Rita.

Even though third quarter revenues were eroded by hurricanes Katrina and Rita, AFC ENTERPRISES INC., operator and franchisor of 1,772 POPEYES CHICKEN & BISCUITS restaurants, still posted a $4.3 million operating profit, versus a $4.5 million loss on operations last year. Net profit for the period ended Oct. 2 at AFC was $100,000, versus a loss of $1.9 million a year earlier.

Operator and franchisor of 214 casual-dining restaurants, TEXAS ROADHOUSE INC., reported an 8.8-percent drop in third-quarter earnings from a year earlier to a profit of $7.1 million, or 10 cents per diluted share. Texas earned $7.7 million in the year-ago quarter.

A third-quarter loss of $4.8 million, was posted by NEW WORLD RESTAURANT GROUP INC., operator and franchisor of 643 Einstein Bros., Noah’s New York Bagels, Manhattan Bagel and Chesapeake Bagel Bakery units for the period ended Sept. 27. This compares to a loss of $5 million for the same quarter last year.

Four weeks ended Oct. 30, DARDEN RESTAURANTS INC., operator of more than 1,390 casual-dining restaurants, said same-store sales rose 8 to 9 percent at its Olive Garden chain as guest counts jumped 6 to 7 percent and the average check increased 2 percent from year-earlier levels. At Red Lobster, same-store sales rose 2 to 3 percent and guest counts increased 1 to 2 percent as its average check grew 1 percent.

Net income posted for the third quarter ended Oct. 2 was $1.2 million compared with $1.3 million in the third quarter of 2004 at FAMOUS DAVE’S OF AMERICA INC., operator and franchisor of 119 barbecue restaurants.

A 37-percent surge in third-quarter net income to $10.8 million was recorded by PAPA JOHN’S INTERNATIONAL, operator and franchisor of 2,894 Papa John’s Pizza restaurants for the period ended Sept. 25.

Franchise operator of 54 T.G.I. Friday’s restaurants, MAIN STREET RESTAURANT GROUP INC., obtained a $45 million credit facility allowing the company to pay down existing debt and finance new-restaurant and remodeling initiatives. The company said the new credit facility consists of a $25 million term loan and a $20 million revolving line of credit. They also operate 11 Bamboo Club Asian Bistros, four Redfish Seafood Grill and Bar and one Alice Cooper’s town restaurant.

For the third quarter ended Sept. 28, EL POLLO LOCO INC., operator and franchisor of 330 fast-casual Mexican restaurants, recorded a jump in net income of 85 percent to $3 million on revenues that advanced 8.9 percent to $61.6 million.

A 36-percent decline in third-quarter earnings was posted by RUBIO’S RESTAURANTS INC., operator and franchisor of 150 Rubio’s Fresh Mexican Grill fast-casual outlets, which they attributed to higher unit-level expenses. For the quarter ended Sept. 25, Rubio’s net income was $828,000 versus $1.3 million a year earlier.

For the third quarter ended Sept. 28, DENNY’S CORP., operator or franchisor of 1,582 family restaurants, narrowed its loss to $3.4 million from a loss of $11.8 million a year ago. Results for 2005 include a charge of $7 million stemming from the company’s settlement of litigation filed by California’s Division of Labor Standards.

Excluding impairment charges, IHOP CORP. posted $3.1 million last year, a 25-percent-higher profit on reduced operating expenses and a systemwide same-store sales gain of 4.5 percent. In addition, the franchisor and operator of 1,218 family restaurants increased its earnings guidance for fiscal 2005 to between $2.15 and $2.20 a share from a range of $2.02 to $2.12 a share.

“No one hires during the Holidays!” - Or do they?

By: Bettie Biehn

Throughout my entire career, I’ve heard the phrase “Don’t bother sending out resumes from Thanksgiving through the first of the year….no one hires during the holidays.” But I’m not sure I believe that old adage any longer. With new methods of recruiting and applying for jobs, chiefly through the internet, and with traditional hiring and employment patterns going the way of the West (e.g. job and company loyalty, on both sides, nonexistent in some industries), hiring is an ongoing process in my book.

Sure, things on the employment front may slow down a bit during the holiday season, but certainly not like they used to. Companies can’t afford a holiday-imposed slowdown, and those of us looking for work welcome this added window of time to make applications. And people do resign or otherwise terminate their employment around this time, opening up opportunities not previously advertised or explored.

Even if the job listings are slimmer during the holidays, it’s a great time to review and tweak your resume, confirm/change/add references to your list, do that research on new fields of interest you’ve been meaning to do for the last six months, and bone up on your interviewing skills. It might even be the time to hire that career coach or resume writer you’ve been considering (oh, all right, a little self-serving, but I have to eat too!).

We always intend to do these things, but rarely find the time to do them justice. And then….the perfect job presents itself to us, and we’re not ready. I say let’s make a resolution before the iron is hot, and consider all the pieces of our job-seeking process, and refresh them if needed, add to them if they’re lacking, and polish them until they’re perfect….or close to it. Ready for that perfect job opportunity.

Here’s wishing you a wonderful holiday season and a job offer perfect for YOU!

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. VP Franchise Services, Mid Atlantic
2. VP Operations, QSR, Southeast
3. VP Development, New England
4. Director of Field Marketing, Midwest
5. Director of Purchasing, West
6. VP Operations, QSR, Midwest
7. Chief Purchasing Officer, Southeast
8. Director of Franchise Services, Northeast/Midwest
9. Director of Operations, Mid Atlantic
10. Chief Marketing Officer, West Coast

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

Dick Wray asked that I share my views as how I see the future of the Chinese QSR market.

There have been a number of changes in the Chinese QSR market, especially over the last ten years. Some of the most significant of these are as follows:

1. The Enclosed Mall environment for the most part, is becoming less and less economically viable with the consolidation of the Developers and the advent of REITS causing excessive occupancy costs. In addition, in the Enclosed Mall environment there is no exclusivity and as a result, many foodservice vendors are being allowed to offer the same product. All of this is in an environment where Enclosed Mall traffic is declining, while food courts are being expanded.
2. Internet Shopping is becoming more and more of a factor where the consumer can buy their goods over the Net and if they are not delivered to them, they simply go directly to the store at the Mall, pick it up an do not stop to shop or eat.
3. The consumer is becoming more and more sophisticated as to what they are consuming in terms of nutritionals, freshness and choice. This has resulted in a growth in demand for the cook to order products at the expense of the traditional steamtable. It has also resulted in people wanting to view their food being cooked in front of them as opposed to the traditional “pass through” window.
4. Fewer Malls are being built; with the emphasis today being on Lifestyle and Power Centers.

So what is the answer as to how someone takes a traditional Chinese Food QSR restaurant chain and grow it. Here are some suggestions.

1. Do not base your Business Model on an Enclosed Mall Environment. For reasons listed above, this is a slow death.
2. Get more revenue out of the same square footage. How? Make your restaurant more than a single category of food (e.g., Chinese, Japanese, Thai, etc.). Build it as a “combination store” offering all three of the above and maybe even Korean and Vietnamese. This can be easily done for very little additional capital cost.
3. Offer both a limited steamtable and cook to order. Be sure to design your stores so that you are cooking in front of your guests. This is key.
4. Investigate opportunities in the Non Traditional areas such as Airports, Casinos, Colleges, Theme Parks, etc. The opportunities in these venues are plentiful and for all intents and purposes, are relatively virgin territory.

This is exactly the direction that I was taking Manchu Wok which was only decided upon after extensive market research.

I hope these suggestions help. Personally, I am looking for an opportunity to either assist someone in rolling out their chain in the QSR or fast casual venue or to acquire a small regional chain, preferably in the Asian category. I can be reached at 1 905 466 3394 or mike.craig@sympatico.ca if you wish to discuss any of this further.

Sexual harassment in the workplace is one of the areas that have received the most press. Lawsuits for sexual harassment and unlawful termination are one of the fastest growing areas of litigation today. Under federal and state law, companies having fifteen (15) or more employees can be held liable for sexual harassment. The first step in protecting the company from the risk of litigation for sexual harassment claims is to understand the law. The second step is to have a well-publicized policy against sex harassment. Normally, a sexual harassment policy can help the employer build a defense from liability when an employee is harassed.

Even though many companies have very good policies against discrimination and harassment which are distributed along with manuals or memoranda, problems may still arise if the policies are not followed or enforced. Merely having a policy against sexual harassment does not automatically insulate the employer from liability, nor does it provide the employer with an automatic defense. For example, an employee may not be faulted for failing to take advantage of his or her company’s policy if the employee never received it and was never provided with information on how to file a complaint.

Although there are no guarantees against liability for sexual harassment, the employer can stack the odds in its legal favor by taking a few steps when implementing and enforcing a sexual harassment policy. It is vital that an employer get the policy in the hands of every employee and document its communication efforts by having new and current employees sign an acknowledgement form, stating that they have not only received the policy, but also have read and understand it.

Employers should also check all the various forms of communication to ensure that they are all in line, providing the same instructions and information that are provided in the company’s sexual harassment policy. For example, if the employer has a poster that references the company policy, the poster should provide the same method that is in the policy for reporting harassment to the employer. The policy should also provide employees with a reasonable avenue for filing complaints.

Significantly, employers should give the policy some legal teeth in court by taking reasonable steps to correct and prevent any harassment from recurring. As soon as the employer becomes aware that harassment may be taking place, the employer must act quickly to stop all forms of sex harassment. Courts have found that an employer has not taken effective remedial measures if the physical harassment ends, but the verbal harassment does not.

David Steffen is a labor and employment attorney with Constangy, Brooks & Smith, LLC in its Tampa, FL office. He can be reached at Dsteffen@Constangy.com or by phone at (813) 223-7166.

Think Smart Tip - Take Ownership!
By: Ilene L. Gershberg

In 2005, Andre Agassi became the oldest tennis player in 31 years to make the US Open finals. We watched in admiration as Agassi challenged the talented, up and coming 22 year old, Robby Ginepri. The crowd cheered with undying support for a tennis hero who exemplifies the power of desire and commitment, which begged the unanimous question…HOW? HOW did he overcome the medical obstacles of sciatic nerve pain, withstanding regular doses of four carefully-administered cortisone injections? HOW did he work past excruciating pain during his aggressive training schedule? HOW did he manage to maintain his dream of a professional comeback? The media noted Agassi’s grueling schedule of cross-training in the gym, running outdoor hill courses to build endurance, and of course hours upon hours on the court. Finally, in a post-game interview, Agassi told us what we were begging to hear…the answer to HOW? My secret he said, ”TAKING OWNERSHIP.” That was his answer to HOW. Agassi expressed his belief in taking ownership of the goal and taking ownership of the process to get there. No excuses…no blame games…recruit your power to make things happen in your life. How can you take ownership of your health and fitness goals?

Health Smart Workplace Tip
Invest in
Executive Retreats
for
PEAK PERFORMANCE TEAMS!

Hundreds of businesses are focused on maximizing the productivity of their teams and have come to realize that by investing in their personal development, they are better able to nurture peak performance. Consider a 2-DAY RETREAT that customizes workplace wellness solutions to the specific nature of your business. An intensive 2-day Peak Performance Retreat will provide your executives with business health strategies, motivation, a support system and practical solutions which address their personal requirements for living healthier lives. Workshops and interactive sessions will enhance their ability to take ACTION. Pump up vitality in your workplace with innovative wellness solutions. Possibly these personal development efforts can be assimilated into your currently-scheduled management conference events. Put your thinking cap on and think ‘outside the gym’ for PEAK PERFORMANCE and PEAK PROFITS!

For corporate wellness solutions at your next conference: Contact Ilene on Health on-line at www.IleneonHealth.com. Ilene L. Gershberg is an executive health and fitness expert, professional speaker and corporate wellness consultant. Ilene works with organizations and businesses on worksite strategies for health/productivity to maximize profitability!

STARWOOD HOTELS & RESORTS WORLDWIDE INC. has acquired the LE MERIDIEN brand along with the related management and franchise business for the portfolio of 130 hotels and resorts globally for approximately $225 million Upon completion of this acquisition, the company’s presence will increase significantly in Europe, Africa, Middle East and Asia Pacific and further supports Starwood's strategic shift from its significant real estate ownership to a management and franchise fee focused model, one of the strategic pillars that support Starwood's future direction. STEVEN J. HEYER, Starwood’s CEO said, "The acquisition of the Le Meridien brand is an exciting and significant development for Starwood that we believe further defines us as a truly global hotel operator. We love the Le Meridien brand which is why we have pursued it over the last couple of years - we see great potential. Le Meridien is a perfect complement to the Starwood portfolio, with its international footprint and unique guest culture. Le Meridien hotels and resorts represents both a great growth opportunity, alongside Starwood's W and Westin brands, and extends the number of destination choices of travel to Starwood loyalists across the world."
Beginning in January, WESTIN HOTELS & RESORTS will prohibit smoking in all rooms, restaurants, bars and public areas at its 77 U.S., Canadian and Caribbean properties. Smoking will only be allowed on balconies or in other outdoor areas. Westin senior vice president, SUE BRUSH, said that the policy reflects "a demand from guests for a smoke-free hotel experience. Nobody likes to walk into a smoky guest room — not even smokers." Westin research shows that 92% of its guests request a non-smoking room. A growing number of city and state ordinances ban tobacco use in workplaces, bars and restaurants and with this no-smoking trend, more hotels are going to go smoke-free. To date, six Westins currently forbid smoking. In 28 lodgings in California's JOIE DE VIVRE boutique-hotel chain, 80% are smoke-free. Smoking has been banned at the five properties in California's WOODSIDE HOTELS & RESORTS group, including the NAPA VALLEY LODGE, since 2000.

Facing strong competition, many hotels today continue to look for new and unusual perks to set them apart. In Maryland at the LOWES ANNAPOLIS HOTEL, guests can enjoy the companionship of Luke, the hotel’s year-old Labrador retriever. Hotel guests are free to take him out for a walk, a jog or even sailing at no extra charge. Luke is a big draw for those travelers who are on the road and miss the companionship of their own pet. Another recent innovation at several hotels is luxurious cars and SUVs that are available for guest use in traveling to meetings, dinners, etc. The CONRAD-TOKYO has a fleet of chauffeured Mercedes-Benzes, three BMW’s, a Lincoln and a Cadillac on hand to transport their guests at a moment’s notice. In Manhattan, the HOTEL GANSEVOORT offers a free luxury sport utility vehicle, complete with TV to shuttle guest and the MANDARIN ORIENTAL HOTEL in New York offers a Land Rover and a BMW. At the FOUR SEASONS HOTEL in Manhattan, the owner and founder of Ty, Inc., Ty Warner, has parked a $400,000 Maybach 62 and a $325,000 Rolls-Royce Phantom in front of the hotel to transport guests to their next breakfast or meeting. MANSION ON TURTLE CREEK, a Rosewood hotel in Dallas, allows guests to upgrade their $450-a-night room to a $675 suite which includes the keys to a Lexus SUV, sedan, or a convertible at no extra cost for their use while staying at the hotel. In the financial district of San Francisco, the HOTEL VITALE offers daily yoga classes in a penthouse studio at no charge. A guest can request a driver to meet them at the airport and check them in while on the way to the HILTON BUENOS AIRES. Today, a guest can even take advantage of executive storage programs (for clothes!). At the WALDORF-ASTORIA in New York, frequent travelers can leave a set of personal belongings at the hotel and every time upon their return, their garments will be freshly laundered or dry-cleaned and hanging in the closet when they arrive. Of course, getting a good night’s sleep is still one of the top priorities of guests . At the DORAL ARROWWOOD, a conference and resort center in Rye Brook, NY they have revamped all of the bedding and include a guide entitled “Work Hard, Sleep Well” in each room next to a pillow on each bed. The brochure features diagrams and advice from Dr. Samuel Dunkell, a psychiatrist and president of Insomnia Medical Services in New York and offers helpful hints on getting a better night’s sleep.

A hospitality investment and operating company, HEI HOSPITALITY announced that RUSSELL D. URBAN has joined the company as senior VP development to head a newly created hotel development division. He will be responsible for finding and negotiating new development opportunities for premium-branded hotels. Targeted brands include ALOFT brand by STARWOOD, COURTYARD BY MARRIOTT, WESTIN and HILTON GARDEN INN, as well as certain upscale extended-stay brands.

Technology is allowing hotels to increase their services to guests at a rapid pace. New computer systems at the MANDARIN ORIENTAL HOTEL in Manhattan and other high end hotels can now keep track of guest’s preferences and change the room conditions automatically to suit each guest’s specific tastes. They can also personalize electronics in the room and sensors can alert maids when the minibar is running low on soda. Smart networks rely mainly on a user’s preferences that hotels obtain in various ways i.e., guests can be asked to fill out questionnaires before their arrival. Also, according to the market research firm, In-Stat, by the year 2009, the number of hotels with broadband connections is expected to increase more than four-fold. Concerns have been raised, however, about privacy and data security and the possibility of hotels sharing the information or selling to marketers, but hotel executives insist that they use this data only to better serve their customers.

The Wyndham Pittsburgh Airport hotel has been renamed the PITTSBURGH AIRPORT MARRIOTT by MARRIOTT INTERNATIONAL, INC. Early next year, the 316-room hotel will undergo a comprehensive $10 million renovation.

In a deal expected to cost approximately $3.4 billion, HOST MARRIOTT will buy 38 hotels from STARWOOD HOTELS AND RESORTS WORLDWIDE which Starwood expects will free it to build its luxury brands and boosts Host’s upscale and overseas hotel and resort holdings. Starwood owns and operates brand names including SHERATON, WESTIN, ST. REGIS and W Hotels. The sale to Host will account for approximately 40 percent of the rooms Starwood owns but Starwood will continue to manage most of the properties for the next 40 years. The purchase makes Host the largest lodging company in the country, will broaden the brand names Host owns and will give the company a total of 145 upscale and luxury hotels under 17 brands and in nine countries.

MARKUS W. ISELI may be one of the bravest men in Syria today. Iseli is the general manager of the FOUR SEASONS DAMASCUS and says “This is the jewel in the crown of the Four Seasons. We see tremendous business potential in Damascus, at least we did until a few days ago.” Life in Damascus is further complicated by the recent suicide attacks last month against three hotels in neighboring Jordan, where 57 people were killed. Iseli arrived in Damascus from Turkey a year ago and has spent his time swarming though his hotel with Four Seasons experts from around the region ensuring that everything is just right including the food, the beds, the phones, the Internet. Despite what is happening in the country, it all has to meet the standards of the Four Season as though this hotel were in any other country. The Fours Seasons opens this month.

ALEXANDER MIRZA has been named to the newly-created position of senior VP, corporate development for HILTON HOTELS CORPORATION. Mirza will be working company-wide on new product development and partnerships, including food and beverage offerings, health clubs and spas, among others. Mirza was a senior executive in the travel and transportation practice at Accenture prior to joining Hilton. Before that, Mirza was head of strategic planning at Starwood Hotels and Resorts Worldwide, where he was responsible for brand positioning, development planning and business innovation. He will report directly to Matthew J. Hart, president and chief operating officer and will be based at the Hilton Hotels Corporation World Headquarters in Beverly Hills.