RISE - Menu Monitor
RISE - Menu Monitor
RISE - Menu Monitor
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<strong>RISE</strong><br />
Restaurant<br />
Information<br />
Services for Executives<br />
Tracking Vital Information on Key Chains<br />
4 th Quarter<br />
2007<br />
Prepared by:<br />
300 South Riverside Plaza<br />
Suite 1940 South<br />
Chicago, IL 60606<br />
312/876-0004<br />
312/876-1158<br />
www.technomic.com<br />
foodinfo@technomic.com
Technomic Information Services believes that is sources of information are reliable but does not assume any<br />
liability for the accuracy or comprehensiveness of the information published. No part of the publication may be<br />
reprinted, redistributed or put into an electronic or information retrieval system without prior permission of<br />
Technomic.<br />
©Technomic Information Services 2007<br />
300 South Riverside Plaza<br />
Suite 1200<br />
Chicago, Illinois 60606
Table of contents:<br />
99 Restaurants ................................................................. 1<br />
A&W Restaurants ............................................................. 4<br />
Abuelo's Mexican Food Embassy..................................... 6<br />
Acapulco Mexican Restaurant and Cantina ...................... 8<br />
Ale House ....................................................................... 10<br />
Applebee's Neighborhood Grill & Bar ............................. 12<br />
Arby's.............................................................................. 17<br />
Arctic Circle Restaurants ................................................ 22<br />
Atlanta Bread Company.................................................. 24<br />
Au Bon Pain.................................................................... 26<br />
Auntie Anne's.................................................................. 29<br />
Avado Brands, Inc........................................................... 31<br />
Back Yard Burgers.......................................................... 33<br />
Bahama Breeze .............................................................. 35<br />
Baja Fresh Mexican Grill................................................. 37<br />
Bakers Square ................................................................ 40<br />
Barnhill's Buffet ............................................................... 42<br />
Baskin-Robbins............................................................... 44<br />
Beef O'Brady's ................................................................ 47<br />
Ben & Jerry's................................................................... 49<br />
Benihana......................................................................... 51<br />
Bennigan's Grill & Tavern ............................................... 53<br />
Bertucci's ........................................................................ 57<br />
Big Boy ........................................................................... 59<br />
BJ's Restaurant & Brewery ............................................. 61<br />
Black Angus Steakhouse ................................................ 64<br />
Black-eyed Pea............................................................... 66<br />
Blake's Lotaburger .......................................................... 68<br />
Blimpie Subs & Salads.................................................... 70<br />
Bob Evans ...................................................................... 72<br />
Bojangles' Famous Chicken 'N Biscuits .......................... 75<br />
Bonefish Grill .................................................................. 78<br />
Boston Market................................................................. 80<br />
Braum's Ice Cream & Dairy Stores ................................. 82<br />
Bravo! Cucina Italiana..................................................... 84<br />
Bruegger's Bagel Bakery ................................................ 86<br />
Bubba Gump Shrimp Co................................................. 89<br />
Buca di Beppo ................................................................ 91<br />
Buffalo Wild Wings Grill & Bar ........................................ 94<br />
Bugaboo Creek Steak House ......................................... 97<br />
Burger King..................................................................... 99<br />
California Pizza Kitchen ................................................ 108<br />
Capital Grille, The ......................................................... 113<br />
Captain D's Seafood Kitchen ........................................ 115<br />
Caribou Coffee.............................................................. 118<br />
Carino's Italian Grill....................................................... 122<br />
Carl's Jr......................................................................... 124<br />
Carlos O'Kelly's............................................................. 128<br />
Carrabba's Italian Grill .................................................. 130<br />
Carrows ........................................................................ 133<br />
Carvel Ice Cream.......................................................... 135<br />
Champps Entertainment, Inc. ....................................... 137<br />
Charley's Grilled Subs .................................................. 140<br />
Charlie Brown's Steakhouses ....................................... 142<br />
Chart House.................................................................. 144<br />
Checkers Drive-In Restaurants..................................... 146<br />
Cheddar's Casual Cafe................................................. 149<br />
Cheeburger Cheeburger ............................................... 151<br />
Cheeseburger in Paradise ............................................ 153<br />
Cheesecake Factory, The............................................. 155<br />
Chevys Fresh Mex........................................................ 160<br />
Chick-fil-A ..................................................................... 162<br />
Chili's Grill & Bar ........................................................... 165<br />
Chipotle Mexican Grill................................................... 169<br />
Chuck E. Cheese's ....................................................... 173<br />
Church's Chicken.......................................................... 176<br />
CiCi's Pizza................................................................... 178<br />
Cinnabon ...................................................................... 180<br />
Claim Jumper................................................................ 182<br />
Coco's Bakery Restaurant ............................................ 184<br />
Cold Stone Creamery ................................................... 186<br />
Copeland's of New Orleans .......................................... 190<br />
Corner Bakery............................................................... 192<br />
Cosi............................................................................... 195<br />
Country Kitchen ............................................................ 198<br />
Country Market Restaurant & Buffet, The..................... 200<br />
Country Pride................................................................ 202<br />
Cracker Barrel Old Country Store ................................. 204<br />
Culver's Frozen Custard ............................................... 207<br />
D'Angelo Grilled Sandwiches........................................ 209<br />
Dairy Queen.................................................................. 211<br />
Damon's Grill ................................................................ 214<br />
Dave & Buster's ............................................................ 217<br />
Del Taco ....................................................................... 219<br />
Denny's......................................................................... 222<br />
Dickey's Barbecue Pit ................................................... 227<br />
Domino's Pizza ............................................................. 229<br />
Don Pablo's................................................................... 233<br />
Donatos Pizza............................................................... 235<br />
Dunkin' Donuts.............................................................. 237<br />
Eat'n Park ..................................................................... 243<br />
Einstein Bros. Bagels.................................................... 246<br />
El Chico Cafe................................................................ 250<br />
El Pollo Loco................................................................. 252<br />
El Torito ........................................................................ 255<br />
Elephant Bar Restaurant............................................... 257<br />
ESPN Zone................................................................... 259<br />
Famous Dave's ............................................................. 261<br />
Farmer Boys ................................................................. 263<br />
Fatburger ...................................................................... 265<br />
Fazoli's.......................................................................... 268<br />
Fire Mountain................................................................ 270<br />
Firehouse Subs............................................................. 272<br />
Five Guys Famous Burgers & Fries.............................. 274<br />
Fleming's Prime Steakhouse & Wine Bar ..................... 276<br />
Fox and Hound English Pub & Grille............................. 278<br />
Fox's Pizza Den ............................................................ 280<br />
Freshen's ...................................................................... 282<br />
Friendly's....................................................................... 284<br />
Fuddruckers.................................................................. 288<br />
Furr's Family Dining ...................................................... 290<br />
Gloria Jean's Coffee ..................................................... 292<br />
Godfather's Pizza.......................................................... 294<br />
Golden Corral ............................................................... 296<br />
Great Steak & Potato Co., The ..................................... 298<br />
Green Mill Restaurant and Bar ..................................... 300<br />
Ground Round Grill & Bar ............................................. 302<br />
Hard Rock Cafe ............................................................ 304<br />
Hardee's ....................................................................... 307<br />
Hooters ......................................................................... 312<br />
Houlihan's ..................................................................... 315<br />
Houston's...................................................................... 317<br />
Huddle House ............................................................... 319<br />
Hungry Howie's Pizza & Subs....................................... 321<br />
Häagen-Dazs................................................................ 323<br />
IHOP............................................................................. 325<br />
Il Fornaio....................................................................... 330<br />
In-N-Out Burger ............................................................ 332
Iron Skillet..................................................................... 334<br />
Islands Fine Burgers & Drinks ...................................... 336<br />
J. Alexander's ............................................................... 338<br />
Jack in the Box ............................................................. 340<br />
Jamba Juice ................................................................. 344<br />
Jason's Deli .................................................................. 347<br />
Jersey Mike's Subs....................................................... 349<br />
Jet's Pizza..................................................................... 351<br />
Jimmy John's Gourmet Sandwich Shop ....................... 353<br />
Joe's Crab Shack.......................................................... 355<br />
Johnny Rockets ............................................................ 357<br />
K&W Cafeterias ............................................................ 359<br />
KFC .............................................................................. 361<br />
Krispy Kreme ................................................................ 366<br />
Krystal Company .......................................................... 371<br />
la Madeleine ................................................................. 373<br />
Landry's Seafood House .............................................. 375<br />
LaRosa's Pizzeria ......................................................... 377<br />
Lee's Famous Recipe Chicken ..................................... 379<br />
Legal Sea Foods .......................................................... 381<br />
Little Caesars................................................................ 383<br />
Logan's Roadhouse...................................................... 385<br />
Lone Star Steakhouse and Saloon ............................... 387<br />
Long John Silver's ........................................................ 389<br />
LongHorn Steakhouse .................................................. 391<br />
Luby's ........................................................................... 393<br />
Maggiano's ................................................................... 396<br />
Marie Callender's Restaurant & Bakery........................ 398<br />
Max & Erma's ............................................................... 401<br />
Mazzio's Italian Eatery.................................................. 404<br />
McAlister's Deli ............................................................. 406<br />
McCormick & Schmick's ............................................... 408<br />
McDonald's................................................................... 411<br />
McGrath's Fish House .................................................. 425<br />
Melting Pot.................................................................... 427<br />
Mimi's Cafe................................................................... 429<br />
Moe's Southwest Grill ................................................... 433<br />
Morton's The Steakhouse............................................. 436<br />
Mr. Gatti's ..................................................................... 439<br />
Mrs. Fields .................................................................... 441<br />
Mrs. Winner's Chicken & Biscuits ................................. 443<br />
Nathan's Famous.......................................................... 445<br />
Noodles & Company..................................................... 447<br />
O'Charley's ................................................................... 449<br />
Old Chicago Restaurants.............................................. 452<br />
Old Country Buffet/HomeTown Buffet........................... 454<br />
Old Spaghetti Factory, The........................................... 456<br />
Olive Garden ................................................................ 458<br />
On The Border Mexican Grill & Cantina........................ 462<br />
Original Pancake House, The....................................... 464<br />
Outback Steakhouse .................................................... 466<br />
P.F. Chang's China Bistro............................................. 469<br />
Palm Restaurant........................................................... 472<br />
Pancho's Mexican Buffet .............................................. 474<br />
Panda Express ............................................................. 475<br />
Panera Bread/Saint Louis Bread Co............................. 477<br />
Papa Gino's Pizzeria .................................................... 482<br />
Papa John's.................................................................. 484<br />
Papa Murphy's Take 'N' Bake Pizza ............................. 490<br />
Pappadeaux Seafood Kitchen ...................................... 492<br />
Pappasito's Cantina...................................................... 494<br />
Pei Wei Asian Diner...................................................... 496<br />
Perkins Restaurants & Bakery...................................... 499<br />
Peter Piper Pizza.......................................................... 502<br />
Piccadilly....................................................................... 504<br />
Pick Up Stix .................................................................. 506<br />
Pizza Hut ...................................................................... 508<br />
Pizza Inn....................................................................... 513<br />
Pizza Pro ...................................................................... 516<br />
Pizzas of Eight.............................................................. 518<br />
Pollo Tropical................................................................ 520<br />
Ponderosa/Bonanza ..................................................... 522<br />
Popeyes Chicken & Biscuits ......................................... 524<br />
Portillo's Hot Dogs ........................................................ 527<br />
Potbelly Sandwich Works ............................................. 529<br />
Qdoba Mexican Grill ..................................................... 531<br />
Quiznos Subs ............................................................... 534<br />
Rainforest Cafe............................................................. 537<br />
Rally's Hamburgers ...................................................... 539<br />
Red Lobster .................................................................. 541<br />
Red Robin Gourmet Burgers ........................................ 545<br />
Restaurants Unlimited .................................................. 550<br />
Roadhouse Grill............................................................ 552<br />
Rock Bottom Brewery ................................................... 554<br />
Roly Poly ...................................................................... 556<br />
Romano's Macaroni Grill .............................................. 558<br />
Round Table Pizza ....................................................... 561<br />
Roy Rogers Restaurants .............................................. 563<br />
Roy's Restaurants ........................................................ 565<br />
Rubio's Fresh Mexican Grill.......................................... 568<br />
Ruby Tuesday .............................................................. 570<br />
Ruth's Chris Steak House............................................. 573<br />
Ryan's Grill, Buffet & Bakery......................................... 577<br />
Saltgrass Steak House ................................................. 579<br />
Sbarro........................................................................... 581<br />
Schlotzsky's.................................................................. 583<br />
Shari's Restaurants ...................................................... 586<br />
Shells Seafood ............................................................. 588<br />
Shoney's....................................................................... 590<br />
Shula's Steak House .................................................... 592<br />
Silver Diner ................................................................... 594<br />
Sizzler........................................................................... 596<br />
Skyline Chili .................................................................. 599<br />
Smith & Wollensky........................................................ 601<br />
Smokey Bones Barbeque & Grill .................................. 603<br />
Smoothie King .............................................................. 606<br />
SONIC Drive-Ins........................................................... 608<br />
Sonny's Real Pit BBQ................................................... 611<br />
Souplantation & Sweet Tomatoes ................................ 613<br />
Starbucks...................................................................... 615<br />
Steak and Ale ............................................................... 627<br />
Steak n Shake .............................................................. 629<br />
Subway......................................................................... 632<br />
T.G.I. Friday's ............................................................... 636<br />
Taco Bell....................................................................... 641<br />
Taco Bueno .................................................................. 646<br />
Taco Cabana ................................................................ 648<br />
Taco John's .................................................................. 650<br />
TacoTime...................................................................... 653<br />
Tastee Freez ................................................................ 655<br />
TCBY............................................................................ 657<br />
Texas Roadhouse ........................................................ 659<br />
Tim Hortons .................................................................. 661<br />
Togo's Eatery/Dunkin' Deli............................................ 664<br />
Tony Roma's................................................................. 666<br />
Tumbleweed Southwest Grill ........................................ 668<br />
Uno Chicago Grill ......................................................... 669<br />
Villa Fresh Italian Kitchen ............................................. 671<br />
Village Inn..................................................................... 673<br />
Waffle House ................................................................ 676<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.
Wendy's Old Fashioned Hamburgers ........................... 678<br />
WesterN SizzliN............................................................ 683<br />
Whataburger ................................................................. 685<br />
White Castle ................................................................. 687<br />
Wienerschnitzel ............................................................ 689<br />
Wingstop....................................................................... 691<br />
Zaxby's ......................................................................... 693<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.
99 Restaurants<br />
Headquarters<br />
3038 Sidco Drive, Nashville, Tennessee 37204 USA<br />
Tel: (615)256-8500 Fax: (615)782-5043<br />
www.99restaurants.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 311,900 288,000 256,000<br />
Company-owned ($000) 311,900 288,000 256,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 114 109 99<br />
Company-owned 114 109 99<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,741 2,770 2,792<br />
Concept Positioning |<br />
99 Restaurants is a full-service casual dining concept specializing in standard American fare, including steaks, burgers,<br />
chicken and seafood. The restaurant prides itself on its generous meal portions, with a variety of traditional entrées in a familystyle<br />
atmosphere. O’Charley’s Inc. is the parent company of over 110 99 Restaurant & Pubs locations throughout the<br />
Northeast.<br />
Units are freestanding brick buildings averaging 4,200–4,500 sq. ft. and have red-striped awnings on the exterior. The décor<br />
reflects a pub atmosphere, with seating for approximately 160 guests. The concept is undergoing a remodeling effort at<br />
several existing units. Updates will feature a new logo and menu. The look and feel of both the exterior and interior décor will<br />
be revamped to reflect a more contemporary design. Changes will include upholstered booths, new tables and dinnerware,<br />
more modern lighting, carpeting and mounted flat-screen televisions. It is predicted that approximately 42 units will reflect this<br />
upgrade by the end of 2007.<br />
Charles Doe founded the company in 1952 at 99 State Street in Boston. The 99 and the horseshoe symbol remained part of<br />
the company logo. Doe’s three sons took over management of the chain in 1993 and added nine restaurants in 2001. In 2003,<br />
they sold the chain to O’Charley’s, Inc. for $160 million, but Charles Doe, Jr., has remained concept president for the brand’s<br />
headquarters in Massachusetts. The company identified New York, Massachusetts and Connecticut as top markets for growth<br />
in recent years. Expansion plans call for over 200 locations by 2008, specifically targeting the Philadelphia metropolitan area<br />
and regions of New Jersey through 2007.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
1
<strong>Menu</strong> Positioning |<br />
99 Restaurants is positioned as a pub-style eatery featuring appetizers, homemade soups and salads, steaks, prime rib,<br />
chicken, seafood, steakburgers, sandwiches, wraps, low-carb options, beverages and desserts for lunch and dinner.<br />
Traditional New England meals, such as baked scrod and New England scallop pie, are served in generous portions. New<br />
low-carb menu items include caesar salad, broiled sirloin tips and the Cajun Bacon Bleu Caesar Steakburger. Signature items<br />
include the Southern Fried Chicken Melt Sandwich, Tropical Chicken Salad and Barbecue Steak Caesar Salad. The kids’<br />
menu has recently expanded to feature junior-sized portions, including Chicken Parmigiana and Chicken Caesar Salad.<br />
Takeaway menus are also available. <strong>Menu</strong> prices range from $2.79–$8.99 for appetizers, soups and salads and $6.69–$13.99<br />
for steaks, sandwiches and seafood items. Checks average $14.<br />
Expansion Plans |<br />
Ninety Nine Restaurant opened a prototype unit in Franklin, MA, in April. The location features a new layout, refreshed décor<br />
and the latest restaurant equipment. The bar is separate from the dining room and the waiting area is larger. The décor<br />
features brightly colored upholstered booths and new tables, movable bar stools, a carpeted dining room, new china, new<br />
uniforms, new flat screen televisions and modern lighting. (Company Website 4/18/07)<br />
<strong>Menu</strong> Development |<br />
99 Restaurants & Pubs added to its starters' offerings Bistro Shrimp Flatbread, with bistro-style flatbread topped with sautéed<br />
shrimp, plum tomatoes, garlic, basil and crumbled goat cheese. (Company Website)<br />
99 Restaurants & Pubs introduced to its beverage lineup Caramel Macchiato, with Kahlua, Bailey’s Irish Cream and coffee<br />
topped with caramel sauce and whipped cream, and Cappuccino Crunch, a blend of espresso, chocolate and ice cream mixed<br />
with Oreo cookies and finished with whipped cream. (Company Website)<br />
99 Restaurants & Pubs debuted This Season’s Reason menu, which allows customers to choose an appetizer, entrée and<br />
dessert from a select menu for a limited time. Offerings include Bistro Salad, Roasted Chicken & Corn Chowder, Roasted<br />
Chicken & Vodka Penne, Chicken Milano, Grilled Honey Glazed Pork Chop, Double Decker Carrot Cake and Tuxedo Brownie.<br />
New menu items featured as part of This Season’s Reason, are Bistro Combo, pairing a Bistro Salad with Bistro Shrimp<br />
Flatbread, and Sweet & Smokey Steakburger, featuring a flame-broiled, chipotle BBQ-glazed steakburger topped with sweet<br />
bourbon onions, smoky bacon and Cheddar cheese and served on warm ciabatta bread with a side of french fries or coleslaw.<br />
(Company Website)<br />
Ninety Nine Restaurants launched its Savor the Flavor menu. Offerings include Boneless Buffalo Wing Salad, tossed with<br />
tomatoes, roasted red peppers and bleu cheese dressing; Kaboom Shrimp, lightly fried shrimp tossed in a spicy sauce;<br />
Vegetable Pot Stickers; Pacific Rim Scallops; Chicken Marsala, sautéed chicken breast topped with melted fontina cheese and<br />
proscuitto; and a Sweet & Smokey Steakburger, with sweet bourbon onions, smoky bacon and Cheddar cheese, glazed with<br />
spicy chipotle BBQ sauce. (Company Website)<br />
Technology |<br />
O’Charley’s Inc. is updating the kitchens of its namesake and Ninety Nine Restaurant casual-dining chains with QSR<br />
Automation’s ConnectSmart Kitchen software and eXpert controller hardware. The new system eliminates printed tickets and<br />
uses graphical displays to show order components by preparation station and status. It also helps ensure foods needed for<br />
one order or table are completed at the same time. The company has set a targeted project completion date for the end of<br />
2008. (Nation’s Restaurant News 8/13/07)<br />
Personnel |<br />
Jeff Williams, CFO<br />
Charlie Noies, V.P. of Operations<br />
John Grady, President<br />
Brad Schiff, V.P. of Marketing<br />
George Togarellis, V.P. Research & Development<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
2
News & Other |<br />
O’Charley’s Inc. is implementing QSR Automation’s kitchen software and hardware in its O’Charley’s and Ninety Nine<br />
Restaurant locations. The company will use QSR’s graphically oriented ConnectSmart Kitchen software and eXpert controller<br />
hardware, as well as the vendor’s KP-3000 keypads. The rollout is expected to be completed by the end of 2008. (Nrn.com<br />
7/18/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
3
A&W Restaurants<br />
Headquarters<br />
1900 Colonel Sanders Lane, Louisville, Kentucky 40213 USA<br />
Tel: (502)874-3000 Fax: (502)874-8848<br />
www.awrestaurants.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 239,500 245,000 240,000<br />
Company-owned ($000) 6,500 8,000 16,000<br />
Franchised ($000) 233,000 237,000 224,000<br />
U.S. Number of Units 406 449 485<br />
Company-owned 10 13 17<br />
Franchised 396 436 468<br />
International Sales ($000) 70,000 68,000 62,000<br />
International Units 238 229 182<br />
Average Sales/Unit ($000) 560 548 495<br />
Concept Positioning |<br />
A&W Restaurants operates a chain of quick-service units specializing in floats, hand-dipped shakes and its proprietary product<br />
A&W Root Beer. The chain also features traditional American fare such as burgers, hot dogs, French fries and onion rings<br />
YUM! Brands is the parent company and franchisor of A&W Restaurants.<br />
Traditional A&W units are freestanding, and offer drive-in or drive-thru service. Units typically average 2,500–3,500 sq. ft. and<br />
are designed to seat 50–70 guests. Nontraditional units can be found in gas and convenience store locations, regional malls,<br />
strip centers, military bases and airports. The chain also actively co-brands, especially with YUM! Brand’s KFC, Long John<br />
Silver’s, Pizza Hut and Taco Bell concepts. A&W units sport the chain’s classic orange and brown color scheme and use the<br />
Great Root Bear as its mascot.<br />
Roy W. Allen purchased the recipe for A&W Root Beer in 1919 and began selling frosty mugs of the concoction for 5 cents. He<br />
joined forces with Frank Wright in 1922 to officially name the beverage and form the A&W Root Beer Co. in Lodi, CA. The new<br />
company, beginning as a root beer stand, started franchising in 1923. A&W was incorporated in 1950 and adopted its present<br />
name in 1978. In 1982, it was sold to Taubman Investment Co. In late 1994, Taubman sold A&W to a group of private<br />
investors under the name Sagittarius Acquisitions, Inc. A&W purchased Long John Silver’s in 1999 and Yorkshire Global<br />
Restaurants, Inc. was formed as the parent company of the two brands. In 2001, YUM! Brands, formerly known as Tricon<br />
Restaurants, purchased Yorkshire Global Restaurants. YUM! is also the parent company of KFC, Pizza Hut and Taco Bell,<br />
and is the largest quick-service restaurant company in the world with over 32,500 restaurants in more than 100 countries and<br />
territories. In 2006, YUM! announced most new A&W locations will be multi-branded with KFC, Pizza Hut or Taco Bell.<br />
<strong>Menu</strong> Positioning |<br />
A&W's menu features burgers, chicken, hot dogs, sides, desserts and its signature root beer soda and floats for lunch and<br />
dinner. Other popular menu items are hamburgers and cheeseburgers, hot dogs, Coney dogs, crispy chicken sandwiches and<br />
crispy chicken strips. Desserts include hard or soft-serve ice cream. Some stores menu regional favorites. The newest menu<br />
addition is the Papa Burger made from 100% U.S. beef. <strong>Menu</strong> prices range between $3.50 and $6 and checks average $6.50.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
4
Promotion Plans |<br />
A&W Restaurants offered free 100% U.S. beef Papa Burgers at Los Angeles International Airport July 12 to welcome soccer<br />
star David Beckham and his wife, former Spice Girl Victoria, to the U.S. As part of the company’s “Moovement to America”<br />
program, the chain also asked the star couple to support U.S. beef by signing a petition. The program began on June 28,<br />
when 30 cows were transported to the Statue of Liberty via barge. A&W uses exclusively U.S.-sourced beef. (Company<br />
Release 7/13/07)<br />
<strong>Menu</strong> Development |<br />
A&W added to its menu Corn Dog Nuggets, mini hot dogs covered in cornmeal batter and deep-fried. The item is priced at 99¢<br />
for a five-piece side, or as a 10-piece combo meal with a drink and fries for $3.99. (Restaurants & Institutions 12/06 p14)<br />
A&W Food Services of Canada will debut a menu featuring items with zero or significantly decreased trans fat. Options with<br />
zero trans fat include fries, Chubby Chicken Burger, Chicken Grill Deluxe, Swiss Veggie Deluxe, poutine and hash browns.<br />
Choices that have had trans fats reduced by 95% include onion rings, Chubby Chicken Pieces and Chubby Chicken Strips.<br />
The Bacon N’ Egger breakfast sandwich has had its trans fats cut by as much as 85%. (CNW.com 1/03/07)<br />
Yum! Brands is expanding Taco Bell’s tomato deal with a Florida farmworker group to cover all of its restaurant chains,<br />
including Pizza Hut, Long John Silver’s and A&W. Yum! Brands previously agreed to pay a penny-a-pound surcharge for<br />
tomatoes used by Taco Bell after a pressure campaign from the Coalition of Immokalee Workers. Yum! says it is expanding<br />
the surcharge agreement with the hope that other restaurants and supermarkets will follow its example. (AFX.com 5/19/07;<br />
NRN Daily NewsFax 5/22/07)<br />
Personnel |<br />
Steve Provost, Chief Marketing Officer<br />
Mike Tattersfield, COO/President<br />
David C. Novak, CEO<br />
Rick Carucci, CFO<br />
Leah Evans, Chief Food Innovation Officer<br />
News & Other |<br />
A&W Revenue Royalties Income Fund reported for the first quarter ended March 25 same-store sales increased 3.6%. This<br />
marks the 16th consecutive quarter of positive sales. In addition, cash generated to pay dividends and distributions grew 7.4%.<br />
(Company Release 5/1/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
5
Abuelo's Mexican Food Embassy<br />
Headquarters<br />
2575 South Loop 289, Lubbock, Texas 79423 USA<br />
Tel: (806)785-8686 Fax: (806)785-8866<br />
www.abuelos.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 107,400 84,000 66,000<br />
Company-owned ($000) 107,400 84,000 66,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 37 29 22<br />
Company-owned 37 29 22<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,500 3,500 3,600<br />
Concept Positioning |<br />
Abuelo's Mexican Food Embassy is a full-service, Mexican cuisine restaurant chain. A privately held company, Abuelo’s<br />
Mexican Food Embassy offers an impressive Mexican courtyard experience for guest to provide a “special occasion”<br />
atmosphere for a casual dining price. Offering an extensive menu of fine dining and upscale Tex-Mex food selections,<br />
Abuelo’s has become known for its distinctive Mexican dishes. The current units are company owned with locations operating<br />
in 15 states throughout the U.S.<br />
Abuelo’s prefers locations near or around retail malls and business centers. Restaurants average 8,000 sq. ft. with seating for<br />
up to 250. Restaurant décor features lush, tropical greenery. Walls are adorned with hand-painted murals that interpret classic<br />
murals from famous Mexican muralists such as Diego Rivera, Jose Clemente Orozco and David Alfaro Siquieros. Handcarved<br />
statues are also prominent at all restaurants, as is an open-air courtyard that features a water fountain and several lifesize<br />
statues providing a romantic background and old Mexico feel. The chain offers dine-in, table delivery, catering and Party<br />
Pak delivery from some locations<br />
Founded in 1989 by James Young and Charles Anderson, Abuelo's Mexican Food Embassy opened its first location in<br />
Amarillo, TX. Expansion will continue in the Southeast and Midwest. Florida and Virginia have been identified as the latest<br />
growth markets for the chain. Additional deals are also in the works for new sites in Ohio, Tennessee and Wisconsin.<br />
<strong>Menu</strong> Positioning |<br />
Abuelo’s Mexican Food Embassy is open for lunch and dinner, seven days a week. Its core menu features appetizers, dips,<br />
salads, soups, platters and combinations, enchiladas, enchiladas, platters and combinations served with a choice of papas<br />
con chile or Mexican rice and a side of refried beans. Open for lunch and dinner, the menu features a mixture of authentic<br />
Mexican specialties and traditional Tex-Mex favorites. Signature items include House Specials such as Pechuga Con<br />
Calabaza, Steak Bamderillas, Tilapia Vercruz, Pescado Guerro and Salmon San Carlos. Popular dessert Popular dessert<br />
items include flan, margarita pie with tequila sauce and specialty coffees. Alcoholic beverages include beer, wine, margarita<br />
and several specialty cocktails. Kids and senior menus are available. <strong>Menu</strong> prices range from $14.98–$27.94. Checks average<br />
$10.<br />
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published.<br />
6
Expansion Plans |<br />
Abuelo’s Mexican Food Embassy will continue to expand throughout the Southeast and Midwest. The company’s first Virginia<br />
location opened last week and its first Florida location is slated to open in early 2007. Deals are also set for openings in Ohio,<br />
Wisconsin, Tennessee and Virginia in 2007. (Company Release 11/16/06)<br />
Abuelo’s plans to open two more units this year and a second Florida location in Kissimmee in early 2008. One of the two units<br />
will be opened in Chattanooga, TN, and the other in Chesapeake, VA, with opening planned for late 2007. (Company Release<br />
5/29/07)<br />
Abuelo’s Mexican Food Embassy is planning additional national expansion, including openings in Florida, Tennessee and<br />
Virginia by late 2007. A second Florida location will be added in early 2008. The company is focusing on infiltrating prime<br />
markets and staffing new stores with quality operators. (Yahoo! Finance 5/29/05)<br />
<strong>Menu</strong> Development |<br />
Abuelo’s Mexican Food Embassy added Enchiladas de Cozumel to its menu. The item features three tortillas stuffed with fresh<br />
avocado and covered with a white wine sauce, shrimps, scallops, mushrooms, spinach and peppers. (Company Website)<br />
Abuelo’s is converting to a cooking oil with no trans fats. The switch is expected to be completed systemwide by early August.<br />
The trans-fat-free oil will be used to cook tortilla chips, French fries, burritos, taco shells and chicken strips. (Nrn.com 7/17/07)<br />
Abuelo’s added a Mexican 2 Step dish to its lunch menu, featuring one beef enchilada, one chicken enchilada, one beef and<br />
bean tostada, Mexican rice, refried beans and two sopapillas with honey syrup. The special is only offered from 11 a.m. to 3<br />
p.m. for $9.99. (Company Release 8/13/07)<br />
Abuelo’s premiered its Mojito Chef’s Features of wood-grilled dishes that have been triple-basted with mojito glaze and topped<br />
with citrus salsa. These include Mojito Chicken, Mojito Shrimp and Mojito Salmon. (Company Website)<br />
Personnel |<br />
Luis Sanchez, Executive Chef<br />
Pat Herring, Controller<br />
Dirk Rambo, S.V.P. of Operations<br />
James Young, CEO<br />
Renee Underwood, V.P. of Marketing<br />
Larry Pearson, V.P of Purchasing<br />
Abuelo’s Mexican Food Embassy hired Renee Underwood as vice president of marketing. Previously, Underwood served as<br />
vice president of marketing for United Supermarkets Inc. (NRN Daily NewsFax 2/7/07)<br />
News & Other |<br />
Abuelo’s is celebrating Grandparents’ Day on September 9. The restaurant will offer a coupon book worth more than $100 to<br />
all grandparents who visit the restaurant. (Company Website 9/4/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
7
Acapulco Mexican Restaurant and Cantina<br />
Headquarters<br />
5660 Katella Ave, Cypress, California 90630 USA<br />
Tel: (800)216-9068 Fax: (562)346-1469<br />
www.acapulcorestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 85,000 86,702 80,000<br />
Company-owned ($000) 85,000 86,702 80,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 35 36 40<br />
Company-owned 35 36 40<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,300 2,281 2,000<br />
Concept Positioning |<br />
Acapulco Mexican Restaurant and Cantina is a chain of casual-dining, full-service restaurants featuring California-Mexican<br />
cuisine. Acapulco Mexican Restaurant & Cantina boasts a fun and festive atmosphere that is comfortable and relaxing. Its<br />
parent company is Real Mex Restaurants, which also operates Chevys, El Torito and a number of other concepts. Real Mex is<br />
one of the largest operators in the casual-dining Mexican segment. Currently there are 35 Acapulco Restaurant and Cantinas<br />
located throughout California.<br />
Acapulco Mexican Restaurant & Cantina units average 8,300 sq. ft. and seat about 250–300. Seating is arranged in its dining<br />
rooms, private party rooms and a large bar area. Units are constructed in a wide variety of sites, as both freestanding models<br />
and inline mall locations, and are accessible to a mix of customers from both nearby businesses and residential areas.<br />
Interiors convey a Mexican beach resort decor with thatch-roofed palapa shacks incorporated into the white-walled dining<br />
rooms, accented by Mexican pottery, artifacts and paintings. The chain also provides banquet and catering services for groups<br />
ranging from 25–2,500, both in the restaurants and offsite. Large-scale catering is handled centrally, with certain restaurants<br />
designated as catering centers.<br />
In 1960, chef Ray Marshall opened his first Acapulco Mexican Restaurant in Pasadena, CA. The Acapulco Restaurant chain<br />
dates from the mid-seventies and has gone through several changes of ownership since then. Restaurant Associates Corp.<br />
acquired the chain in the 1980’s. In 1998, it sold Acapulco to an investor group of BRS, Furman Selz, BancBoston Capital,<br />
Acapulco management and Nick Valenti. In 2006, Real Mex was acquired by Sun Capital Partners, Inc. Most Acapulco<br />
Restaurant locations are in California, from San Diego to Santa Clara, as well as a single unit in Portland, OR. Expansion will<br />
continue in the West.<br />
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published.<br />
8
<strong>Menu</strong> Positioning |<br />
Acapulco Mexican Restaurant & Cantina’s menus for lunch and dinner emphasize casual-dining Mexican fare. Signature items<br />
include Sea of Cortez–grilled Alaskan halibut filet with signature sherry-butter sauce or tomatillo sauce, grilled shrimp<br />
brochette on rice and crab enchilada, served with vegetables; Tampiquena Steak–chili-citrus marinated grilled steak served<br />
with a cheese enchilada, rice and refried beans; and Carne Asada y Camarones—chili-marinated grilled steak and shrimp<br />
sautéed in jalapeño-garlic butter, served with sautéed onions and bell peppers, rice and warm tortillas. Also available are a<br />
variety of burritos, enchiladas, fajitas, soft tacos and tostadas, including Halibut Tacos—grilled halibut in chili-lime marinade<br />
with fresh cabbage and pico de gallo in soft, warm flour tortillas, served with rice and sautéed fresh vegetables; and BBQ<br />
Chicken Tostada–romaine, black beans, corn, jicama, fresh basil, Jack and Cheddar cheeses and chipotle tortilla strips tossed<br />
with Picante BBQ Ranch dressing, garnished with tomatoes and served on a crispy red chile flour tortilla. Desserts include<br />
Flan, Deep-Fried Ice Cream and Molten Chocolate Cake, $3.49–$4.49. Drinks include specialty margaritas, liqueur-spiked ice<br />
cream and tropical cocktails such as Red Bull Madras—Red Bull energy drink with Smirnoff vodka, peach schnapps and<br />
cranberry and orange juices. Alcohol accounts for about 25% of sales. <strong>Menu</strong> prices range from $13.28–$23.58. Checks<br />
average $9.75 for lunch and $18.95 for dinner.<br />
<strong>Menu</strong> Development |<br />
Acapulco Restaurants introduced its new Fajitas Gigante dish. The entrée features chile-citrus marinated steak, chicken breast<br />
and jalapeño-garlic sautéed shrimp served flaming at the table with Jose Cuervo Gold Tequila. The item is priced at $14.99.<br />
(Company Website 4/3/07)<br />
Personnel |<br />
Peter Serantoni, V.P. of <strong>Menu</strong> Development<br />
Frederick Wolfe, CEO<br />
Steven Tanner, CFO<br />
Charles Rink, COO<br />
Julie Koenig, V.P. of Marketing<br />
Carlos Angulo, President of Purchasing & Distribution<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
9
Ale House<br />
Headquarters<br />
612 N. Orange Ave. Suite C-6, Jupiter, Florida 33458 USA<br />
Tel: (561)743-2299 Fax: (561)743-7210<br />
www.alehouseinc.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 165,000 150,000 142,000<br />
Company-owned ($000) 165,000 150,000 142,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 39 38 37<br />
Company-owned 39 38 37<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,150 4,000 4,050<br />
Concept Positioning |<br />
Ale House is a chain of casual-dining, neighborhood pub-style restaurants offering an extensive menu including various<br />
seafood entrées, steaks, pasta, salads and its famous Zingers chicken wings. The privately held restaurant operates 37<br />
restaurants in Florida and one unit in Georgia.<br />
Units are freestanding stucco buildings, ranging in size from 7,800–10,000 sq. ft. and seat 250–350 people. Exteriors feature<br />
brass hardware and green awnings. Its décor includes wooden seating, booths, sports memorabilia, video monitors, nautical<br />
woods, exhibition kitchens and a center island bar. In addition, each site carries the name of its location as part of its own<br />
official name. Units serve lunch and dinner daily.<br />
Jack and Claire Miller founded Ale House in 1988 in Jupiter, FL. While each unit has been created as a single entity, all have a<br />
common ownership and parent Ale House Management oversees the operation. The company has not disclosed future<br />
expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Ale House's large, extensive menu of American favorites features appetizers, soups, salads, chicken selections, burgers,<br />
sandwiches, fajitas, steaks, seafood, pasta and desserts. Signature items include its famous Zingers chicken wings, clams on<br />
the half shell, peel and eat shrimp and raw oysters. Entrées include Southwest Bistro Steak Salad, Zinger Salad, Cajun<br />
Burger, Blackened Prime Rib Sandwich, Bahamian Dolphin and Filet Mignon. The casual dining chain also menus a wide<br />
variety of burgers and sandwiches as well as several pasta dishes. Alcohol is served with a selection of more than 75 varieties<br />
of beer along with microbrews and wine. A kids' menu is offered, with standard children's favorites such as chicken fingers,<br />
macaroni & cheese and grilled cheese. <strong>Menu</strong> prices range from $2.75–$22.99. Checks average $15.15.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
10
Personnel |<br />
Ray Holden, COO/President<br />
Jack Miller, CEO<br />
Mark Peterson, CFO<br />
Keith Frasar, V.P. of Purchasing<br />
Keith Frasar, V.P. of Marketing<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
11
Applebee's Neighborhood Grill & Bar<br />
Headquarters<br />
4551 W. 107 St., Overland Park, Kansas 66207 USA<br />
Tel: (913)967-4000 Fax: (913)341-1694<br />
www.applebees.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 4,542,914 4,192,228 3,888,398<br />
Company-owned ($000) 1,196,258 1,082,641 976,798<br />
Franchised ($000) 3,346,656 3,109,587 2,911,600<br />
U.S. Number of Units 1,841 1,732 1,613<br />
Company-owned 521 486 424<br />
Franchised 1,320 1,246 1,189<br />
International Sales ($000) 152,311 113,918 89,687<br />
International Units 89 72 58<br />
Average Sales/Unit ($000) 2,551 2,520 2,482<br />
Concept Positioning |<br />
Applebee's Neighborhood Grill & Bar is the largest chain of casual-dining restaurants in the U.S. Applebee's friendly<br />
"neighborhood" atmosphere and extensive menu of appetizers, entrées and cocktails appeals to a wide and varied<br />
demographic of diners. Its restaurants are full-service operations open for lunch, dinner, snacks and weekend brunch.<br />
Applebee's International, the parent company of Applebee's, operates approximately 25% of its units; the remaining stores are<br />
franchised.<br />
Units are primarily freestanding, suburban buildings or endcaps of strip centers or enclosed shopping centers. Interiors are<br />
designed to reflect intimate pub settings, with antiques, historic pictures, Tiffany-style lamps, latticework and plants featured to<br />
create the ambience. A horseshoe shaped bar, seating approximately 17 additional customers, also serves as a focal point in<br />
the restaurant. Several units have added outdoor patio seating. Each restaurant displays items that are unique to the city of its<br />
location. The company currently has four freestanding prototypes in use, with the larger units ranging from 4,700–5,000 sq. ft.,<br />
with seating for 150–200 patrons. Its other two are for use in its “small town” expansion and range from 3,800–4,300 sq. ft.<br />
with seating for 135–145 customers.<br />
William Palmer opened the first Applebee's in 1981 in two former fast-food outlets in Atlanta, GA. W.R. Grace’s Creative Food<br />
‘N Fun acquired the company in 1983. The brand changed its name to Applebee's Neighborhood Grill & Bar in 1985, after<br />
Taco Villa acquired Creative Food 'N Fun from Grace for six million common shares. In 1988, Applebee's was purchased for<br />
$20 million by a group of investors who formed Applebee's International, Inc. An initial public offering was tendered in 1989. In<br />
early 1995, Applebee's completed its acquisition of Innovative Restaurant Concepts, operator of the Rio Bravo concept and<br />
divested itself of those operations in 1999 to Chevy’s Fresh Mex for approximately $59 million. In late 1997, it announced the<br />
acquisition of 32 Applebee’s from Apple South (now Avado Brands) as part of that franchisor’s plan to exit the Applebee’s<br />
system. In the summer of 2007, IHOP Corp. bid $2.1 billion to acquire the bar-and-grill chain. Once the acquisition is complete,<br />
IHOP plans to expand the chain by renovating its menu and décor and selling most company-owned units to franchisees.<br />
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published.<br />
12
<strong>Menu</strong> Positioning |<br />
Applebee's varied menu features appetizers, entrées, salads, sandwiches and desserts for lunch and dinner. The menu<br />
includes steak, chicken, seafood specials, chili, salads, hamburgers and sandwiches. Popular appetizers include potato skins,<br />
nachos, Buffalo wings and mozzarella sticks. Signature items include Applebee’s Barbecue Pork Riblets, Oriental Chicken<br />
Salad, the House Sirloin, Sizzling Fajitas and Fiesta Lime Chicken. Weight Watchers menu items include Grilled Shrimp<br />
Skewer Salad, Southwest Cobb Salad, Grilled Tilapia with Mango Salsa and Confetti Chicken. Brunch items range from the<br />
five-layer Italian omelet to French toast sticks. Desserts include Blue Ribbon Brownie, Triple Chocolate Meltdown, bread<br />
pudding and apple pie. Alcoholic beverages are served. A kids’ menu offers chicken fingers, macaroni and cheese,<br />
cheeseburgers and a grilled chicken sandwich. <strong>Menu</strong> prices range from $3.99–$14.99. Checks average $10.75.<br />
Expansion Plans |<br />
Applebee’s International Inc. plans to slow expansion in 2007 to its lowest growth rate in the past 10 years. The company<br />
plans to open 10 to 15 new restaurants during 2007. (Bizjournals.com 11/3/2006)<br />
Applebee’s International is closing 24 company-owned restaurants, 10 in the New England region and 14 throughout nine<br />
other states. The company decided to close these units after an extensive review to identify these restaurants as not meeting<br />
acceptable levels of return on investment and other key operating metrics. (Business Wire 3/21/07; NRN Daily NewsFax<br />
3/22/07; The Wall Street Journal 3/22/07)<br />
Applebee’s new headquarters is under construction despite the sale of the company to IHOP. The new headquarters will be<br />
located in Lenexa, KS. The project is estimated to cost $45–$50 million and is expected to be completed later this year.<br />
(Bizjournals.com 7/13/07)<br />
Promotion Plans |<br />
Applebee’s selected McCann Erickson as its new creative agency of record, effective immediately. McCann Erickson is known<br />
internationally for its work on ads such as MasterCard’s “Priceless” and Verizon Wireless’s “The Network.” Applebee’s first<br />
order of business with McCann Erickson is to develop a new integrated communications campaign that will launch in the fourth<br />
quarter. (Company Release 7/13/07)<br />
Applebee’s Grill & Bar launched an ad campaign that features a wisecracking apple. The chain is seeking an edgier tack in a<br />
marketing campaign that also extends to redesigns of its logo, menu and uniforms, as well as testing a new building design.<br />
The apple, dubbed the Red Delicious “spokesapple,” is scheduled to premier on October 28. The voice of the apple is<br />
provided by comedienne Wanda Sykes. (NRN Daily NewsFax 10/26/07)<br />
<strong>Menu</strong> Development |<br />
Applebee’s debuted several new limited time menu items. These are: •Seared Ribeye with Garlic Chili Shrimp—a 12-oz. steak<br />
marinated in Asian soy sauce, topped with plump shrimp and crisp Asian veggies in a red chili sauce •Sicilian Sirloin & Crab-<br />
Topped Shrimp—7-oz. grilled sirloin coated in Italian seasonings, coupled with sautéed shrimp, finished with crab stuffing and<br />
lemon garlic butter •Applebee’s Mixed Seafood Grill—a Parmesan tilapia filet, margarita shrimp skewer and a seared crab<br />
cake •House Sirloin & Grilled Shrimp Skewers—7oz. sirloin matched with grilled shrimp skewers. (Company Release<br />
11/20/06)<br />
Applebee’s added an Italian Chicken & Portobello Sandwich to its menu. The item is prepared with grilled marinated chicken<br />
breast and sautéed portobello mushrooms, topped with a slice of tomato and served on a whole-wheat bun with chunky<br />
marinara sauce and a side of fresh fruit. (Company Release)<br />
Applebee’s has switched to a zero-trans-fat frying oil in all of its 1,800-plus units nationwide. The chain estimates that it will<br />
also begin using trans-fat-free pan and grill oil within a few weeks. Applebee’s is now using a soybean blend oil for frying.<br />
Company executives claim that the new trans-fat-free oil does not take away from the texture or quality of its food. Applebee’s<br />
is currently working with its vendors to replace prepared foods that still contain trans fats. (Nation’s Restaurant News 5/28/07<br />
p6)<br />
Applebee’s is asking customers to design a burger to be added to the chain’s menu next year. The company’s “Big Burger<br />
Showdown” will be judged by Tyler Florence, a Food Network personality and an Applebee’s spokesperson who has<br />
developed menu items for the chain. (NRN Daily NewsFax 6/12/07)<br />
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13
Applebee’s Neighborhood Bar & Grill and Wendy’s Old Fashioned Hamburgers launched contests that asked customers to<br />
create a new burger that would be available on their menus for a limited time. Other restaurants such as Red Robin and Dairy<br />
Queen are using this contest technique, indicating that this could be the beginning of a marketing trend. (Nation’s Restaurant<br />
News 7/3/07 p1)<br />
Applebee’s added Ultimate Trios to its menu, allowing customers to choose any three appetizers for $10.99. Selections<br />
include Dynamite Shrimp, Tuscan Cheese Spread, Crispy Fiesta Wrappers, Mozzarella Sticks, Mini Bacon Cheeseburgers,<br />
Steak Quesadilla Towers and Boneless Buffalo Wings. (Company Website)<br />
Applebee’s introduced its Bruschetta Burger, made with 100% Angus beef, topped with zesty pesto sauce, bruschetta mix and<br />
wedges of mozzarella, and served on grilled focaccia bread. (Company Website)<br />
International Activities |<br />
Applebee’s International Inc. plans to open its first unit in China on October 26. The restaurant will open in downtown<br />
Shanghai. (Reuters 10/24/07)<br />
Personnel |<br />
Steve Lumpkin, CFO<br />
David Parsley, V.P. of Purchasing<br />
Carin Stutz, E.V.P. of Operations<br />
Phil Crimmins, V.P. of Development<br />
Applebee’s International hired George Williams as chief marketing officer. Previously, Williams served as senior vice president<br />
of marketing for Blockbuster Inc. (Company Release 2/8/07)<br />
Applebee’s franchisee Apple-Metro Inc. hired Miguel Fernandez as Executive Vice President and Chief Operating Officer.<br />
Previously, Fernandez served as Applebee’s Senior Vice President for Operations. (Nation’s Restaurant News 9/3/07)<br />
IHOP Corp. plans to realign its organizational structure following its pending buyout of Applebee’s. Eight senior officials at<br />
Applebee’s International Inc., including president and chief executive Dave Goebel, will leave the company. In addition,<br />
several Applebee’s executives have not been asked to stay on after the merger, including chief financial officer Steve<br />
Lumpkin. IHOP says the realignments are necessary because Applebee’s will become a franchisor without any restaurant<br />
operations. (Nation’s Restaurant News Daily NewsFax 11/08/07)<br />
News & Other |<br />
Applebee’s International Inc. reported November same-store sales decreased 3.1%. (Company Release 11/27/06)<br />
Applebee’s International institutional investor Breeden Capital Management nominated four candidates for the company’s<br />
board at the 2007 annual shareholders meeting. Breeden Capital, a Greenwich, CT-based investment fund, believes new<br />
board members will be a step toward improving the chain’s financial performance and return to investors. Breeden is<br />
suggesting that Applebee’s cut spending and unit numbers. (Wall Street Journal 12/12/06; Kansas City Business Journal<br />
12/11/06)<br />
Applebee’s International Inc. reported December same-store sales increased 0.2%. (Company Release 1/8/07)<br />
Applebee’s International Inc. reported January same-store sales decreased 5.8%. (Company Release 1/31/07)<br />
Applebee’s International Inc. reported for the fourth quarter ended December 31 net earnings fell 9.7% to $18.5 million from<br />
$20.5 million for the same period last year. Revenues increased 13.9% to $342 million from $300.1 million. Same-store sales<br />
declined 1.1%. For The year ended December 31 net earnings declined 20.5% to $80.9 million from $101.8 million. Revenues<br />
rose 8.3% to $1.3 billion from $1.2 billion. Same-store sales decreased 0.6%. (Company Release 2/14/07)<br />
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published.<br />
14
Applebee’s International Inc. is considering selling the company or pursuing other strategic alternatives. According to analysts,<br />
Applebee’s has been hurt in recent months by a decrease in customer spending and an increased competition from other barand-grill<br />
style restaurants. The chain’s shares have underperformed on the Standard & Poor’s restaurant index this year.<br />
Breeden Partners LP, a hedge fund with a 5% stake in the company, has been urging Applebee’s to cut spending, sell more<br />
restaurants to franchisees and improve cash returns to shareholders. Breeden has criticized Applebee’s for its alleged<br />
compensation practices. Breeden Partners is looking for Applebee’s to “eliminate unnecessary expense and unhealthy<br />
practices,” discontinue the use of a corporate jet and suspend incentive compensation for senior executives. (Nation’s<br />
Restaurant News 1/27/07, 2/14/07; NRN Daily NewsFax 1/30/07; MSNBC.com 2/13/07; The Wall Street Journal Online<br />
2/13/07)<br />
Applebee’s reported February same-store sales fell 3.9% to domestic restaurants and 4.3% at corporate restaurants. (NRN<br />
Daily NewsFax 3/1/07)<br />
Applebee’s International Inc. has instructed its legal and financial advisors to contact potential buyers as part of exploring its<br />
strategic alternatives. Potential buyers would most likely include large private-equity firms. (NRN Daily NewsFax 3/13/07)<br />
Applebee’s International Inc. is continuing to explore strategic alternatives and has contacted its legal and financial advisors to<br />
discuss options. Analysts speculated that potential buyers for the company would most likely be large private equity firms. One<br />
analyst noted that any purchaser would need to provide at least $800 million in equity as part of the acquisition. (NRN Daily<br />
NewsFax 3/13/07; Nation’s Restaurant News Online 3/12/07)<br />
Applebee’s International will appoint Breeden Capital Management LLC nominees to its board, thus heading off a proxy fight<br />
contest at the company’s 2007 annual meeting of Stockholders. Applebee’s said that it has received bids to acquire the<br />
company. Applebee’s plans to have a second round of discussions with potential buyers before asking them to submit binding<br />
offers. Applebee’s did not release any more details on the preliminary offers. (Company Release 4/26/07; Houston Chronicle<br />
4/26/07)<br />
Applebee’s Chief Financial Officer and Executive Vice President, Steve Lumpkin, was named one of the best Chief Financial<br />
Officers in the U.S., according to Institutional Investor magazine. Lumpkin ranked third of all restaurant companies’ Chief<br />
Financial Officers; McDonald’s ranked first and Starbucks second. (Company Release 5/4/07)<br />
Applebee’s International Inc. reported May same-store sales decreased 2.1% in domestic units systemwide, 1.9% in domestic<br />
franchised units and 2.9% in company-owned units. Guest traffic declined 3%–3.5%. (Company Release 5/30/07)<br />
Applebee’s International Inc. reported for the first quarter ended April 1 net earnings fell 65% to $9.5 million from $27.2 million<br />
for the same period last year. Revenues declined 0.3% to $337.6 million. Domestic system-wide same-store sales decreased<br />
4% and for the four weeks ended April 29, domestic systemwide same-store sales fell 0.7% and same-store sales at<br />
company-owned locations dropped 0.8%. (Nation’s Restaurant News 5/21/07 p10)<br />
IHOP Corp. made a bid of more than $2 billion to buy Applebee’s International Inc., the Bloomberg news service reported,<br />
citing an unidentified source. Both IHOP and Applebee’s refused to comment. IHOP has said it is considering the acquisition of<br />
a noncompetitive concept that is already franchising. (NRN Daily NewsFax 6/14/07)<br />
Applebee’s International has launched an ad campaign featuring celebrity chef Tyler Florence. The campaign is centered<br />
around the theme “Grilling Fresh.” Dishes such as crunchy onion rings, a California shrimp salad, and an Aloha Burger are<br />
being rolled out during the campaign. In addition, Applebee’s is holding a “Big Burger Showdown” contest and asking<br />
consumers to create the chain’s next burger. Tyler Florence will choose the winning burger, which will be featured on next<br />
year’s menu. The winner will receive $5,000. (NRN Daily NewsFax 5/29/07; NRN Daily NewsFax 6/12/07)<br />
An Applebee’s location in California accidentally served a two-year-old child a margarita instead of an apple juice. After the<br />
child became drowsy and started vomiting, he was rushed to the hospital. Believing it was an honest mistake, Applebee’s will<br />
reimburse the child’s family for the medical bills and units will no longer store apple juice and margaritas in similar containers.<br />
(Abcnews.go.com 6/15/07)<br />
Applebee’s International Inc. has narrowed its search for a new advertising agency to two companies: TBWA\Chiat\Day and<br />
McCann Erickson. Adweek reported that Applebee’s account is worth $180 million. Applebee’s expects to choose an agency<br />
sometime in the summer. (Bizjournals.com 7/6/07)<br />
Applebee’s International Inc. could pay IHOP $60 million if it backs out of its pending deal to be acquired. Both companies<br />
expect the $2.1 billion deal to close in the forth quarter of 2007. IHOP, based in Glendale, CA, operates 1,319 units and<br />
Overland Park, KS-based Applebee’s operates or franchises 1,943 casual-dining units. (Nation’s Restaurant News 7/30/07)<br />
Applebee’s International reported June same-store sales decreased 0.3% systemwide. Same-store sales for company-owned<br />
restaurants fell 0.2%. For the second quarter, same-store sales decreased 0.9% systemwide, 1.2% for company-owned<br />
restaurants and 0.8% for domestic franchised locations. (Company Release 7/16/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
15
IHOP Corp. will acquire Applebee’s International Inc. for $2.1 billion. IHOP management will focus on re-energizing Applebee’s<br />
system performance by driving marketing and operational improvements and plans to franchise many of Applebee’s 508<br />
company-owned units. (Phx.corporate-ir.net 7/16/07)<br />
Western Sizzlin Corp. and Lion Fund L.P. CEO and chairman Sardar Biglari, an Applebee’s shareholder, opposes Applebee’s<br />
pending purchase by IHOP because he thinks Applebee’s is worth more than $25.50 per share and will vote against the<br />
transaction. (Company Release 7/25/07)<br />
Applebee’s International Inc. reported for the second quarter ended July 1 net earnings increased 18.6% to $24.2 million from<br />
$20.4 million for the same period last year. Revenues rose 2.5% to $332.2 million from $324.1 million. Same-store sales fell<br />
0.9%. (Company Release 8/1/07)<br />
Applebee’s International Inc. reported August same-store sales decreased 0.9% systemwide compared to year-before figures.<br />
Domestic franchise sales fell 0.7% and company-owned unit sales declined 1.6%. (Company Release 9/4/07)<br />
Applebee’s disclosed that five directors believe the deal between IHOP and Applebee’s wasn’t fair to stockholders. These five,<br />
including its chairman, chief executive and chief financial officer, plan to vote their shares against the transaction. The<br />
directors believe that stockholders would receive a higher value that would come from a separate plan to keep the company<br />
independent and overhaul its strategy. (Blogs.wsj.com 9/7/07)<br />
Applebee’s is being targeted by Birth Without Boundaries International for asking breastfeeding mothers to be “respectful” of<br />
other patrons. In early September, the not-for-profit organization recruited 2,000 people to gather outside 97 Applebee’s in 44<br />
states to protest in favor of a “friendlier” breastfeeding policy. The demonstration followed an August incident at a Lexington,<br />
KY, Applebee’s, where a manager allegedly told a nursing mother to cover herself and her nursing baby with a blanket<br />
because another guest had complained. Birth Without Boundaries International, based in Harrisburg, PA, works to eliminate<br />
restrictions imposed on birthing women and their babies. (NRN Daily NewsFax 9/11/07)<br />
Applebee’s reported for the third quarter ended September 30, domestic company-owned same-store sales declined 0.2% and<br />
domestic franchised same-store sales fell 0.4%. For the five-week period that ended September 30, systemwide domestic<br />
same-store sales rose 0.6%. (NRN Daily NewsFax 10/5/07)<br />
IHOP CEO Julia Stewart plans to rejuvenate the Applebee’s chain, which IHOP recently purchased. Stewart plans to sell most<br />
of Applebee’s company-owned locations to franchisees and revamp the company’s look and menu to make it stand out. The<br />
process of revamping the brand could take until 2010. (Associated Press 9/27/07)<br />
Applebee’s International Inc. agreed to settle a class-action lawsuit filed by a union challenging its proposed sale to IHOP<br />
Corp. The New Jersey Building Labors Pension claims the deal robbed Applebee’s shareholders of financial benefits that<br />
might have been received had the company remained independent and sold its remaining company-owned units to<br />
franchisees. Applebee’s will not pay any money, but has agreed to give its shareholders more information about the<br />
transaction. (Associated Press 10/14/07)<br />
IHOP plans to sell most of Applebee’s company-owned stores to franchisees after completing its $2.1 billion acquisition of the<br />
bar-and-grill chain in late October. It also will make menu changes and update décor. (Yahoo! Finance 9/27/07)<br />
Applebee’s International Inc. stockholders have voted to accept a merger agreement between the company and IHOP Corp.<br />
The announcement comes after a special stockholder meeting held October 30 in which more than 70% of shares voted in<br />
favor of the merger agreement. The transaction is expected to close by November 29. (Applebee’s International Inc. Press<br />
Release 10/30/07)<br />
IHOP Corp. has completed its acquisition of Applebee’s International Inc. for $25.50 per share in cash, or about $1.9 billion.<br />
The total value of the transaction comes to about $2.3 billion because of the assumption of Applebee’s debt and the<br />
transaction fees IHOP will pay. IHOP plans to sell most of Applebee’s company-run restaurants to franchisees, cut costs and<br />
complete sale-leaseback transactions on corporately owned real estate assets. IHOP also detailed for the first time that it<br />
planned to sell 475 of Applebee’s 510 corporate locations by the end of 2010. Select markets could be sold by early next year.<br />
(NRN.com 11/29/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
16
Arby's<br />
Headquarters<br />
1155 Perimeter Center West, Atlanta, Georgia 30338 USA<br />
Tel: (678)514-4100 Fax: (678)514-5339<br />
www.arbys.com<br />
Ownership: Public<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 3,263,300 2,975,000 2,845,000<br />
Company-owned ($000) 1,073,300 975,000 200,000<br />
Franchised ($000) 2,190,000 2,000,000 2,645,000<br />
U.S. Number of Units 3,458 3,376 3,325<br />
Company-owned 1,061 1,039 235<br />
Franchised 2,397 2,337 3,090<br />
International Sales ($000) 65,000 64,000 62,500<br />
International Units 127 130 135<br />
Average Sales/Unit ($000) 900 880 845<br />
Concept Positioning |<br />
Arby's is a chain of limited-service restaurants specializing in slow-roasted, freshly sliced roast beef sandwiches. The publicly<br />
held company operates 3,585 units worldwide, 2,397 of which are franchised. The approximately 1,000 company-owned units<br />
are all located in the United States.<br />
Arby's restaurants are freestanding or located in shopping malls and strip sites. A typical outlet is 2,500–3,000 sq. ft. with<br />
seating for 75–100 patrons. The most recent prototype features a partial glass exterior and columnar lighting. Traditional units<br />
have a stucco exterior with vertical fascia and columns in wheat and red colors. Most locations have drive-thru service.<br />
Leroy and Forrest Raffel founded Arby’s in Boardman, OH, in 1964, and sold the first franchise the following year. By 1970,<br />
there were 250 Arby’s units. The company added an average of 50 restaurants a year in the 1970s. Arby’s went public in 1974<br />
and was acquired by DWG Corp. in 1976. The company continued expanding both locations and menu items. In 1980, it<br />
opened its 1,000th restaurant, and in 1981 it established its first international unit in Japan and introduced chicken to its menu.<br />
In 1993, controlling interest in DWG Corp. was sold, and the corporate name was subsequently changed to Triarc Companies,<br />
Inc. Triarc acquired the struggling T.J. Cinnamons chain in 1996. In 1997, Triarc announced the sale of its 355 companyowned<br />
Arby’s to RTM, Inc., its largest franchisee, for some $71 million. In 2005, Triarc acquired RTM Restaurant Group for<br />
$175 million, formed Arby’s Restaurant Group, Inc., and moved its headquarters to Atlanta. In 2007, the company signed<br />
franchise agreements for 35 new units in 11 states.<br />
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published.<br />
17
<strong>Menu</strong> Positioning |<br />
Arby's is open for breakfast, lunch and dinner, featuring roast-beef sandwiches, chicken sandwiches, breakfast items,<br />
potatoes, sides, desserts and shakes. Arby’s offers guests an alternative to traditional fast food with its signature menu items<br />
including the Beef ’n Cheddar, Curly Fries and Jamocha shakes. Signature sauces include Horsey Sauce and Arby’s Sauce.<br />
Arby’s upgraded Market Fresh sandwiches, salads and wraps are designed to appeal to a healthier lifestyle. Arby’s uses 100%<br />
all-natural chicken in its salads, tenders, wraps and sandwiches, including the Chicken Cordon Bleu and Chicken Bacon and<br />
Swiss. Popular choices include the Ultimate BLT, the Southwest Chicken Wrap and the Martha’s Vineyard Salad, with sliced<br />
almonds and raspberry vinaigrette. The kids' menu features a new meal offering deli-style Market Fresh Mini Sandwiches in<br />
ham and cheese or turkey and cheese versions; each is served on crustless honey-wheat bread with milk or juice and a fruit<br />
cup of seedless red grapes and diced apples. <strong>Menu</strong> prices range from $1.39–$5.49. Checks average $5.<br />
Expansion Plans |<br />
Arby’s Restaurant Group Inc. has agreed to open 63 new units throughout the U.S. The number includes six new and 27<br />
existing franchisees for Arby’s units in California, Arizona, Illinois, Georgia, Indiana, Florida, Iowa, Louisiana, Kentucky,<br />
Michigan, Maryland, New Mexico, Oregon, New York, Tennessee, the Carolinas, South Dakota, Texas and the Virginias.<br />
There are approximately 3,600 Arby’s restaurants worldwide. (Qsrmagazine.com 5/9/07)<br />
Arby’s plans to add 354 units by 2013. The chain will develop 25 units in 2008 and has more than 350 new units committed to<br />
franchisees in the next five years. (Costar.com 8/20/07)<br />
Promotion Plans |<br />
Arby’s is offering coupons for $1 off a roast beef choice, three for $5 Beef ‘n Cheddars, three for $4 Regular Roast Beefs, 99¢<br />
Junior Roast Beefs, $1 off a French Dip Sandwich, 50¢ off a Market Fresh Sandwich or Wrap, 99¢ medium Curly fries and 50¢<br />
off a chicken choice. The coupons are valid through February 26. (Company Release 2/15/07)<br />
Arby’s will offer free medium curly fries on “Matt’s Monday.” The restaurant will only offer the item after the Nextel or Busch<br />
Series race and only if Matt Kenseth wins a race. Customers redeeming the free food must bring in a printed copy of the<br />
official race results as their coupon. (Company Release 2/15/07)<br />
Arby’s is offering two new flatbread sandwiches and a chance to attend the Academy of Country Music Awards. The<br />
sandwiches, Fajita Beef Flatbread melt and Philly Beef Flatbread Melt, are priced at $3.49 and are available until April 14.<br />
(Company Release 3/2/07)<br />
Arby’s sent discount cards to about 300,000 residents in Allen, Huntington and Whitley counties in Indiana. The cards, which<br />
hang on key chains, can be used to receive discounts on Arby’s sandwiches or for free drinks until the end of July. Arby’s is<br />
supporting the initiative with regional promotions including TV ads and coupons. (FortWayne.com 3/12/07)<br />
Arby’s employed NASCAR driver Matt Kenseth on July 26 in one of its restaurants nationwide to promote its Popcorn Chicken<br />
Shakers item. Kenseth was working the drive-thru in one of the chain’s locations and was handing out free samples of the new<br />
item. At the time of the promotion, customers had to find Kenseth; to them, he could have been at any of Arby’s locations.<br />
(Company Release 7/24/07)<br />
Arby’s is promoting its Popcorn Chicken Shakers with a buy-one-get-one-for-17¢ coupon. The coupon is valid through August<br />
5 and is available on Arby’s website. (Company Website 7/23/07)<br />
Arby’s is offering its customers a chance to win one of hundreds of prizes, including a 2008 Ford Mustang in the “Clean Out<br />
Matt’s Garage” sweepstakes. Customers who upsize their combo to a 32-oz. beverage and large order of curly fries. Each 32-<br />
oz. cup is printed with a peel-and-win sticker that will instantly tell customers if they have won free Arby’s products. The<br />
stickers also have codes that customers can use to download free music and enter for a chance to win the 2008 Ford<br />
Mustang. The promotion is tied to NASCAR driver Matt Kenseth, who is sponsored by Arby’s. It will run through November 30.<br />
(Company Release 10/18/07)<br />
Arby’s is giving away free curly fries as part of the Matt’s Monday NASCAR promotion. The event is held the Monday after<br />
each Matt Kenseth NASCAR win in 2007. At participating stores on November 19, a free medium-size order of curly fries will<br />
be given to each customer presenting the official results of Matt Kenseth’s NASCAR win at the Ford 400 in Miami. This<br />
promotion marks the third time Kenseth has won “curly fries for America.” (Businesswire.com 11/19/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
18
<strong>Menu</strong> Development |<br />
Arby’s introduced its Market Fresh Reuben Sandwich for a limited time. The sandwich features classic-cured corned beef,<br />
sauerkraut, Thousand Island dressing and Swiss cheese on toasted marble rye market fresh bread. The sandwich will also be<br />
available in a wrap through January 6. Both the sandwich and wrap is priced at $3.99. (Company Release 11/20/06)<br />
Arby’s Restaurant Group Inc. has started serving french fries with zero grams of trans-fat, making Arby’s the first national fast<br />
food chain to eliminate trans-fat oils in its french fries. The new oil is set to be in all Arby’s restaurants by May 1. (Company<br />
Release 11/28/06)<br />
Arby’s announced that is switching to french fries with zero grams of trans fat by May 2007. The change will occur in two<br />
phases, including the suppliers’ adoption of alternative oils for pre-processing and then the replacement at Arby’s units of the<br />
hydrogenated corn oil the chain currently uses for frying. (NRN Daily NewsFax 11/29/06; Washington Post 11/28/06)<br />
Arby’s added Flatbread Melts to its menu for a limited time. Varieties include Fajita Beef, covered with spicy Jack cheese and<br />
red jalapeño ranch sauce, and Philly Beef, with melted Swiss cheese and Parmesan peppercorn sauce. (Company Release)<br />
Arby’s debuted Spicy Cajun Fish Sandwich, consisting of a fish fillet topped with spicy Cajun tartar sauce, lettuce and tomato<br />
and ñserved on a sesame-seed bun. The item is available for a limited time; diners can purchase either the Spicy Cajun or<br />
Classic Fish Sandwiches at a price of $4 for two. (Company Website)<br />
KFC, Arby’s, Carl’s Jr. and McDonald’s as well as many other chains are hopping on the Mexican-flavor bandwagon with new<br />
items featuring chipotle, poblano peppers, spicy beans and cilantro. KFC introduced its Grilled Mexi Bowl featuring Mexicanstyle<br />
rice, jalapeño pinto beans and pico de gallo relish; Arby’s is now offering a Santa Fe Salad; McDonald’s introduced its<br />
Southwest Salad; and for years, Carl’s Jr. has featured items such as breakfast burritos. (Nation’s Restaurant News 5/21/07<br />
p6)<br />
Arby’s Restaurant Group Inc. completed its switch to a zero grams trans fat cooking oil in all of its restaurants nationwide.<br />
Instead of partially hydrogenated corn oil, the chain now uses non-hydrogenated corn oil. Over 70% of Arby’s menu items<br />
contain 0.5 grams or less of trans fat. (Company Release 6/12/07)<br />
Arby’s will introduce its new Popcorn Chicken Shakers on July 2 for a limited time. The item works like this: Patrons select<br />
regular or large Popcorn Chicken Shakers, choose a sauce, pour the sauce over the Shaker cup, close lid and shake until<br />
chicken is covered in sauce. The item will be available until August 18. (Company Release 6/29/07)<br />
Arby’s introduced an Orange Cream Shake, mixing orange and silky cream flavors, for a limited time. (Company Website)<br />
Arby’s introduced a Strawberry Banana Swirl Shake to its summer dessert menu. (Company Website)<br />
Arby’s debuted Southwest Mini Egg Roll appetizers for a limited time. The bite-sized egg rolls are filled with chicken, bell<br />
peppers, corn, black beans and jalapeño peppers flavored with a spicy Southwestern seasoning.Arby’s serves the item with<br />
chile-lime ranch sauce for dipping. (Company Website)<br />
Arby’s launched its Toasted Subs line, the company’s largest menu introduction since the 2001 rollout of its Market Fresh line.<br />
Arby’s Toasted Subs feature four deli-inspired sandwiches, including the French Dip & Swiss Toasted Sub, with Arby’s roast<br />
beef and melted Swiss cheese on a toasted ciabatta roll with au jus; The Philly Beef Toasted Sub, with Arby’s roast beef,<br />
melted Swiss cheese, green and red bell peppers, roasted onions and roasted garlic sauce on a toasted ciabatta roll; Classic<br />
Italian Toasted Sub, with ham, salami, pepperoni, melted mozzarella cheese, red onion, tomato, lettuce, red wine vinaigrette,<br />
garlic mayonnaise and banana peppers on a toasted ciabatta roll; and Arby’s Turkey Bacon Club, with turkey breast, melted<br />
Swiss cheese, pepper bacon, tomato, lettuce, red onion and herbed mayonnaise on a toasted ciabatta roll. (Qsrmagazine.com<br />
10/1/07)<br />
Franchise Activity |<br />
Arby’s Restaurant Group signed deals with new and existing franchisees to open 51 new units. The outlets are slated for<br />
Illinois, Indiana, Louisiana, Michigan, Mississippi, New Jersey, New York, South Carolina, Texas, Utah, West Virginia and<br />
Wisconsin as well as British Columbia, Canada. This brings Arby's total number of signed development agreements in 2006 to<br />
168. It operates and franchises 3,500 restaurants worldwide. (Company Release 2/09/07)<br />
Arby’s franchisee, The Restaurant Co., attributes much of its success to high hiring standards. Prospective employees<br />
undergo a psychological profile, drug test and criminal background check in addition to going through several interviews. The<br />
company also conducts employee satisfaction surveys twice a year. (Qsrweb.com 4/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
19
Arby’s Restaurant Group Inc. signed development agreements with four new and 13 existing franchisees to open 35 new<br />
locations throughout the U.S. Markets of focus are California, Delaware, Illinois, Indiana, Louisiana, Michigan, Mississippi,<br />
Tennessee, Texas, Utah and West Virginia. (Company Release 9/26/07)<br />
Technology |<br />
Arby’s Restaurant Group Inc. chose SRC to deliver mapping, reporting and analysis capabilities to Arby’s. SRC will develop<br />
and host a web-based, automated solution through its Portfolio Web technology program to support development process and<br />
franchise planning. SRC, LLC is a leading developer and provider of geographic business intelligence software. (Company<br />
Release 1/23/07)<br />
Personnel |<br />
Ronald Smith, CEO<br />
Stephen Hare, CFO<br />
Tom Garrett, COO<br />
Cheryl Barre, CMO<br />
Jeff Blackmun, V.P. of <strong>Menu</strong> & Product Development<br />
Arby’s announced that most of its executives in its New York office, including Chief Executive Officer and Chairman Nelson<br />
Peltz and President and Chief Operating Officer Peter May, will resign as officers by June 29. In addition, “substantially all” of<br />
its 50 headquarters employees will leave the company by the end of the year. The reason for the layoffs is the company’s<br />
transition to a publicly traded restaurant company, employing cost-saving tactics by relocating to Atlanta and transferring<br />
responsibilities to Arby’s Restaurant Group, eliminating the need for a New York office. (NRN Daily NewsFax 5/1/07)<br />
Triarc Companies Inc. hired Thomas A. Garrett as Executive Vice President and Chief Operating Officer; Stephen E. Hare as<br />
Senior Vice President and Chief Financial Officer; Steven B. Graham as Senior Vice President and Chief Accounting Officer;<br />
Nils H. Okeson as Senior Vice President and Associate General Counsel; and Daniel T. Collins as Senior Vice President and<br />
Treasurer. Garrett also serves as President and Chief Operating Officer of Arby’s Restaurant Group Inc. and Hare also serves<br />
as Chief Financial Officer at Arby’s Restaurant Group Inc. Graham also serves as Senior Vice President, Corporate Controller<br />
at Arby’s Restaurant Group Inc. Previously, Okeson served as General Counsel of Arby’s Restaurant Group Inc. and has also<br />
served as Secretary of Triarc. Collins also serves as Senior Vice President, Treasury at Arby’s Restaurant Group Inc.<br />
(Company Release 9/4/07)<br />
News & Other |<br />
Arby’s teamed with Roush Racing to sponsor Matt Kenseth during the 2007 season. The company will be the primary sponsor<br />
of 13 races on Kenseth’s No. 17 Ford Fusion NASCAR beginning in Daytona, FL, in February. (Company Release 12/7/06)<br />
Arby’s Restaurant Group Inc. reported for the first quarter revenues increased 3% to $266.5 million from $258.8 million for the<br />
same period last year. Same-store sales decreased 2%. (Atlanta Business Chronicle 5/11/07)<br />
Triarc Cos. plans to focus on its Arby’s restaurants after a $300 million sale of its controlling stake in investment manager<br />
Deerfield & Co. Triarc sold its stake in Deerfield to Deerfield Triarc Capital Corp. As part of the restructuring, Nelson Peltz<br />
agreed to step down as chairman and CEO of Deerfield Triarc. Peter W. May, president and CEO, also will resign. Both will<br />
remain as board members. Triarc franchises approximately 3,600 Arby’s units worldwide. (AFX Asia 4/20/07; NRN Daily<br />
NewsFax 4/23/07)<br />
Arby’s Restaurant Group is sole sponsor of a new website featuring NBC comedy shows. The 3,600-unit chain will target office<br />
workers viewing thelunchbreakshow.com. Arby’s website ads will include banners and commercials featuring the slogan “I’m<br />
Thinking Arby’s.” A Kenyon Research survey showed that nearly 60% of workers stay at their desks during lunch breaks.<br />
(NRN Daily NewsFax 6/1/07)<br />
Arby’s parent Triarc Cos. Inc. said the deal to sell its controlling interest in asset-management firm Deerfield & Co. LLC was<br />
terminated on October 20. The transaction was terminated because the prospective buyer was unable to get acceptable<br />
financing. The company plans to continue to explore options for Deerfield. (NRN Daily NewsFax 10/23/07)<br />
Arby’s parent Triarc Cos. Inc. reported operating profit for the chain of $29.8 million for the quarter ended September 30, up<br />
from $25.9 million a year ago. The increase reflects newly opened Arby’s stores that booked higher-than-average unit volumes<br />
along with higher franchise fees. Same-store sales at corporate restaurants fell 1%. (NRN.com 11/9/07)<br />
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20
Wendy’s International Inc. has received a lower-than-expected buyout offer from Arby’s parent company Triarc Cos. Wendy’s<br />
said Triarc’s bid was less than the anticipated $37 to $41 per share, which Triarc proposed in a July 30 letter. The exact<br />
amount of Triarc’s November 12 proposal was not disclosed. Triarc chairman Nelson Peltz is a 9.8% stakeholder in Wendy’s.<br />
(Marketwatch.com 11/14/07)<br />
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published.<br />
21
Arctic Circle Restaurants<br />
Headquarters<br />
411 West 7200 South Suite 200, Midvale, Utah 84047 USA<br />
Tel: (801)561-3620 Fax: (801)561-9646<br />
www.arcticcirclerest.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 55,200 53,200 49,000<br />
Company-owned ($000) 21,400 19,600 18,200<br />
Franchised ($000) 33,800 33,600 30,800<br />
U.S. Number of Units 77 80 79<br />
Company-owned 25 24 26<br />
Franchised 52 56 53<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 717 665 620<br />
Concept Positioning |<br />
Located mostly in the western United States, Arctic Circle Restaurants has enjoyed success in many different renderings: first<br />
as a refreshment stand, then as a sandwich shop and later as a car lube and oil chain. Today, Arctic Circle has returned to<br />
one of its original concepts—that of being a limited-service sandwich shop. In addition to sandwiches, the chain specializes in<br />
Black Angus burgers, salads and sides, as well its signature chocolate-topped vanilla ice cream cone, dubbed the “Brown<br />
Topper.” Known as a family-friendly, casual concept, Arctic Circle is run by Arctic Circle Restaurants Inc., which franchises<br />
60% of its units.<br />
Units are typically freestanding with seating for 100 customers. Restaurants offer dine-in as well as drive-thru service. Most<br />
notably, many units feature a "Playzone," a colorful 750–1,000 sq.ft., two-story area where children play while their parents<br />
eat. Arctic Circle is a longtime favorite of families with children, in fact the chain was the first quick-service chain in the U.S. to<br />
offer a kids’ meal. In recent years, stores have been updated with a more contemporary look, including lighter color schemes<br />
and new seating, all designed to increase the turn-around time for guests.<br />
Arctic Circle Restaurants was founded in Salt Lake City, UT, in 1950 by Don Carlos Edwards. Franchising the Arctic Circle<br />
name along with his products and equipment, Edwards was able to expand the Arctic Circle name quicker and more efficiently<br />
than most of his competitors. After a venture in the vehicular lube-and-oil business, the company was acquired by Quaker<br />
State Oil in 1985. In 1992, the restaurant was sold to former officers and shareholders in Arctic, William Gee and George<br />
Morgan. There are more than 80 locations in operation. Growth has been primarily located in the West and Northwest,<br />
including Arizona, California, Idaho, Montana, Nevada, Oregon, Washington, Wyoming and Utah. Long-term expansion plans<br />
have not been disclosed.<br />
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published.<br />
22
<strong>Menu</strong> Positioning |<br />
Arctic Circle's signature items are its sandwiches, especially Ranch-Fried Chicken sandwiches. Other featured sandwiches<br />
include grilled chicken breast and grilled or fried halibut. The restaurant also menus Black Angus hamburgers with a variety of<br />
different toppings, including mushrooms and Swiss cheese. In addition to sandwiches and burgers, customers can choose<br />
among salads such as the Taco Salad, Crispy Chicken Salad and Grilled Chicken Salad. Arctic Circle is widely known for its<br />
"Fry Sauce," a proprietary mixture of ketchup, mayonnaise and seasoning. Fry sauce is sold by the bottle in stores, and is<br />
served with orders of french fries and onion rings. One of the chain’s most popular items is the Brown Topper, a vanilla ice<br />
cream cone dipped in chocolate. Other topping flavors for cones include cherry and banana. Desserts also include milkshakes,<br />
sundaes and malts. Beverages include soft drinks, including sodas and lime squeezes. Choices for kids include a hamburger,<br />
cheeseburger, corn dog, chicken rings or chicken fingers with fries and a drink. No alcohol is served. <strong>Menu</strong> prices range<br />
between $1.99 and $4.79. Checks average $3.79.<br />
<strong>Menu</strong> Development |<br />
Arctic Circle introduced its new Yukon Gold french fries at most of its locations. The new fries are made from Yukon Gold<br />
yellow-fleshed potatoes. (Company Release 4/4/07)<br />
Personnel |<br />
Gary Roberts, CEO<br />
Frank Christianson, CFO<br />
Bill Schoen, V.P. of Purchasing<br />
Bill Schoen, V.P. of Operations<br />
Carol Brown, V.P. of Marketing<br />
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published.<br />
23
Atlanta Bread Company<br />
Headquarters<br />
1955 Lake Park Drive Suite 400, Smyrna, Georgia 30080 USA<br />
Tel: (800)398-3728 Fax: (770)444-1991<br />
www.atlantabread.com<br />
Ownership: Private<br />
Segment: Limited Service Bakery/Café<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 166,395 180,959 219,750<br />
Company-owned ($000) 8,724 1,550 8,750<br />
Franchised ($000) 157,671 179,409 211,000<br />
U.S. Number of Units 143 174 177<br />
Company-owned 8 2 7<br />
Franchised 135 172 170<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,134 1,104 1,250<br />
Concept Positioning |<br />
Atlanta Bread Co. is an upscale fast-casual concept that specializes in made-from-scratch breads and pastries while also<br />
offering a variety of sandwiches, soups and salads for breakfast, lunch and dinner. The bakery-style atmosphere is<br />
comfortable and relaxing. Classical music plays in the background and stores offer hardwood floors, cozy fireplaces and<br />
comfortable armchairs. Atlanta Bread Company offers breakfast, lunch and dinner. The menu presents itself as a healthy<br />
alternative and appeals to heath conscious consumers who appreciate gourmet food items. Atlanta Bread Company is the<br />
parent company of Atlanta Bread Company. Atlanta Bread Company operates approximately 6% of its units; the remaining<br />
units are franchised. Atlanta Bread Company is a national chain.<br />
Stores are usually freestanding. Locations are approximately 5,000 sq. ft. and seat roughly 130 customers. Units feature<br />
hardwood floors, classical music playing in the background and the scent of fresh gourmet coffee brewing to create a<br />
comfortable and inviting atmosphere. The limited service cafes are open for breakfast, lunch and dinner. The company also<br />
provides catering for special events, business meetings, and luncheons.<br />
The concept was founded in Atlanta in 1993 by brothers Jerry and Basil Couvaras. In 1995 they began franchising the Atlanta<br />
Bread concept. The popular concept has since expanded nationwide. In 2006, the company launched Zaria, a new<br />
bakery/café bistro in Georgia. Offering breakfast, lunch and dinner, Zaria is considered to be a new growth vehicle for the<br />
company, which envisions at leas 10 new units by 2009. Atlanta Bread Company is working toward the goal of 500 stores in<br />
50 states through 2008.<br />
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published.<br />
24
<strong>Menu</strong> Positioning |<br />
Atlanta Bread Company offers breakfast, lunch and dinner. The menu offers a wide variety of made-to-order sandwiches, hot<br />
soups, tossed-to-order salads, paninis, pizzas, gourmet coffees, bakery sweets and breads. Signature items include<br />
sandwiches such as Honey Maple Ham, Whole Grain Turkey Select, and All White Albacore Tuna Salad on artisan breads<br />
including Sourdough, Cracked Wheat, Focaccia, French, Rye and Pumpernickel. Specialty sandwiches include Char-grilled<br />
Chicken Pesto, Cuban Pork Loin and the Panini Milano. Salad offerings include Chopstix Chicken Salad, Balsamic Bleu Salad,<br />
Greek Salad, Caesar Salad and the customizable House Salad. Its Half and Half Combo offers soup with either a half-sized<br />
salad or half sandwich. No alcohol is served. A kids’ menu is available, featuring choices like peanut butter and jelly<br />
sandwiches and grilled cheese sandwiches. Select locations offer an extended menu of pizzas, pastas and calzones. <strong>Menu</strong><br />
prices range from .75¢–$8.49. Checks average $9.17.<br />
<strong>Menu</strong> Development |<br />
Atlanta Bread Company rolled out a Turkey Cranberry Twist Sandwich and Cream of Pumpkin Soup. (Company Release<br />
11/22/06)<br />
Atlanta Bread Company added Peach Tea to its menu. (Company Website)<br />
Atlanta Bread Company rolled out a Steak Bleu Salad featuring lemon-garlic seasoned steak fillets over mixed greens with red<br />
onion, tomato, croutons and bleu cheese crumbles in an aged Mediterranean balsamic vinaigrette. (Company Website)<br />
Atlanta Bread Company introduced a new sandwich, Bistro Chicken Press, a seasoned chicken breast topped with roasted red<br />
pepper spread, crispy bacon, red onion and provolone cheese and served on ciabatta bread. (Company Website)<br />
Atlanta Bread Co. introduced its Latin-inspired <strong>Menu</strong>. Additions include: • Salsa Fresca Salmon Salad—with grilled Alaskan<br />
salmon on romaine and mixed greens, mixed with black bean and corn salsa and Pineapple-Mango Vinaigrette • Cubano<br />
Panini—thinly sliced, marinated pork loin and ham topped with Swiss cheese, spicy mustard, mayonnaise and diced dill<br />
pickles on grilled foccacia bread. • Baja Chicken Enchilada Soup—a blend of chicken, vegetables and black beans in a zesty<br />
broth of chilies and Latin spices • Key Lime Pie—made with Key limes and topped with whipped cream and graham cracker<br />
crumbles. (Company Website)<br />
Atlanta Bread Company reintroduced the Turkey Cranberry Twist for the holiday season. The sandwich features oven-roasted<br />
turkey breast, lettuce, tomato, onion, mayonnaise and a tangy cranberry spread on Asiago focaccia bread. Also available<br />
through December 31 are seasonal breads and Pumpkin Pie Lattes. (Fastcasual.com 11/13/07)<br />
Franchise Activity |<br />
Atlanta Bread Co. International Inc. is being sued by a franchisee for $12 million. The suit alleges that the chain wrongfully<br />
terminated a five-unit deal with the franchisee because he opened a unit of PJ’s Coffee and Lounge in Atlanta. Atlanta Bread<br />
believes that PJ’s menu and theme are similar to those of its bakery concept. The suit was filed last February and is currently<br />
awaiting trail. (NRN Daily NewsFax 1/16/07; Atlanta Business Chronicle 1/12/07)<br />
Personnel |<br />
Jeff Wiggins, CFO<br />
Greg Mare, V.P. of Purchasing<br />
Jerry Couvaras, President<br />
Chris Campagna, V.P. of Marketing<br />
Jim Riekel, V.P of Operations<br />
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published.<br />
25
Au Bon Pain<br />
Headquarters<br />
1 Au Bon Pain Way, Boston, Massachusetts 02210 USA<br />
Tel: (617)423-2100 Fax: (617)423-7879<br />
www.aubonpain.com<br />
Ownership: Private<br />
Segment: Limited Service Bakery/Café<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 203,000 215,000 190,000<br />
Company-owned ($000) 113,000 123,000 131,000<br />
Franchised ($000) 90,000 92,000 59,000<br />
U.S. Number of Units 206 220 199<br />
Company-owned 103 110 130<br />
Franchised 103 110 69<br />
International Sales ($000) 20,000 32,000 18,500<br />
International Units 25 36 31<br />
Average Sales/Unit ($000) 1,040 1,025 975<br />
Concept Positioning |<br />
Au Bon Pain is a limited-service, bakery-café operation. The chain is privately held by Au Bon Pain Inc. and operates 255<br />
locations worldwide and plans to grow by an additional 300 units in Japan through a partnership with REINS International, Inc.<br />
Units average about 2,700 sq. ft. with seating for 80 and are located in high-traffic, densely populated areas. Non traditional<br />
venues are located in airports, shopping malls or college campuses. Many have outdoor seating areas and feature a French<br />
marketplace theme. The décor includes S-shaped tables, comfortable bench seating and a new color scheme of blue and<br />
yellow. Restaurants are lit by Philippe Starck’s “Romeo Moon” lights and are computer accessible. The chain’s new prototype<br />
seats 150–200 in about 4,000 sq. ft. and has an open kitchen and a larger dining area than traditional outlets.<br />
Au Bon Pain first opened in 1978 in Boston, MA by Louis Kane Pavailler, a French company that manufactures bakery<br />
equipment. Kane ran the original bakery. In 1991, the company went public. In 1992, it acquired Warburton's, a Chicago-based<br />
chain of 22 units. It then sold to franchisee ABP Midwest eight of the stores located in the Chicago region for conversions. In<br />
1993, it announced the acquisition of St. Louis Bread Company for $24 million in cash and additional considerations based<br />
upon future performance. In 1994, it acquired ABP Midwest, which had previously purchased eight Chicago units. In 1999, Au<br />
Bon Pain Inc. stockholders approved the sale of its flagship Au Bon Pain brand to ABP Corp., an affiliate of Bruckmann,<br />
Rosser, Sherrill Co., Inc. for $73 million. The deal was completed by mid-1999. In 2000, food management giant Compass<br />
Group North America acquired the chain from BRS for an undisclosed sum. Au Bon Pain's managers purchased the chain<br />
from Compass Group in 2005 for about $90 million. Compass Group has a 25% stake in the company and has remained a<br />
franchisee. In addition, a new unit for the Boston Children's Museum is planned for winter 2007. In other expansion activity, the<br />
concept launched international units in Kuwait and Thailand in 2007.<br />
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26
<strong>Menu</strong> Positioning |<br />
Au Bon Pain is open for breakfast, lunch and dinner and offers sandwiches, paninis, wraps, create-your-own sandwiches,<br />
bakery goods, soups, salads and coffees. Signature items include on-premise baked breads, bagels, muffins, croissants, rolls<br />
and cookies. Lunch features soups and upscale made-to-order sandwiches. Popular sandwiches include chocolate cherry<br />
marshmallow, chili Dijon grilled chicken and the baked mozzarella tomato sandwich. The breakfast menu features a sausage<br />
breakfast sandwich. Beverages include espresso and cappuccino. Catering service is available. <strong>Menu</strong> prices range from<br />
$1.89–$6.89. Checks average $5.<br />
Expansion Plans |<br />
Au Bon Pain will open a new unit in the Boston Children’s Museum in the winter of 2007. Its menu will include healthy choices<br />
and a nutrition kiosk with a variety of games to help children make healthy meal choices. The company will also expand into<br />
Kuwait and Thailand. (Bizjournals.com 11/15/06)<br />
Au Bon Pain is looking to double its number of U.S. restaurants over the next five years. The chain is focusing its expansion<br />
efforts on the New York and Chicago markets as well as suburban areas. Au Bon Pain wants to open 15 restaurants in the<br />
New York market, where it already operates 35 locations. The chain will also roll out new menu items this year, including<br />
sandwiches and pasta dishes. There are 255 Au Bon Pain locations in the U.S., South Korea, Thailand and Taiwan. (Chicago<br />
Tribune 2/09/07)<br />
Au Bon Pain opened a catering facility in Washington D.C. in an attempt to grow its catering business. The facility will provide<br />
baked goods for its smaller stores and catering services for events of up to 5,000 guests. The facility is expected to earn the<br />
chain an increase in Washington-area sales of up to 25%. (NRN Daily NewsFax 10/5/07)<br />
<strong>Menu</strong> Development |<br />
Au Bon Pain launched two new baked goods featuring hazelnuts, the Hazelnut Dream Brownie and Hazelnut Dream Cookie.<br />
(Company Website)<br />
Au Bon Pain added a Hazelnut Latte to its beverage lineup. (Company Website)<br />
Au Bon Pain rolled out Mayan Chicken Harvest Rice Bowl to its menu. (Company Website)<br />
Cobb salad variations are a popular way for restaurants to combine elements from world cuisines. Au Bon Pain outlets offer<br />
diners Chopped Cobb Salad Wrap, with turkey tenderloins, romaine and mesclun greens, hard-cooked eggs, Gorgonzola<br />
cheese and tomatoes with ranch dressing in a wrap. Blue Coral Seafood & Spirits in Newport Beach, CA, menus a Lobster<br />
Cobb Salad, with Maine lobster tail, asparagus, fresh hearts of palm, tear drop tomatoes and creamy tarragon dressing.<br />
Sodexho Corporate Services prepares a Fiesta Mexican Salad, featuring pico de gallo, diced jicama, red bell peppers, creamy<br />
avocado and black beans paired with a chipotle-lime ranch dressing. At the Windows on the Bay at the Sheraton Gateway<br />
Hotel in San Francisco, guests can dine on Thai Cobb Salad, featuring shiitake mushrooms, daikon sprouts, mung bean<br />
sprouts, cilantro, chopped romaine, grilled chicken and avocado with a house vinaigrette made with sambal chile paste, miso<br />
paste and fish sauce. (Restaurants & Institutions p49 2/07)<br />
Au Bon Pain added three new sandwiches to its menu. The Curry Chicken Sandwich features Thai red curry chicken salad<br />
with apple and grapes, served on a croissant with a slice of tomato and romaine lettuce; Smoked Turkey, Emmental Swiss &<br />
Jalapeño Guacamole, with smoked turkey topped with Emmental Swiss cheese and jalapeño guacamole, snow peas and<br />
tomatoes served on a baguette; and Portobello & Goat Cheese, roasted portobello mushrooms topped with goat cheese,<br />
tomato and mixed greens with artichoke aïoli served on sundried tomato bread. (Company Website)<br />
Au Bon Pain debuted a Wild Berry Smoothie made with lowfat yogurt and assorted berries. The quick-service chain also offers<br />
Strawberry and Peaches & Cream smoothies. (Company Website)<br />
Au Bon Pain rolled out three Harvest Rice Bowls, in Steak Teriyaki, Mayan Chicken and Cajun Shrimp flavors. The bowls are<br />
filled with steamed rice and topped with tomatoes, onions, cucumbers and mixed greens. (Company Website)<br />
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27
Bon Pain has switched to all-natural chicken for its signature salads and sandwiches and now boasts a menu free of trans fat.<br />
The bakery-café chain worked for four years to eliminate trans fat. Au Bon Pain recently introduced a revamped menu offering<br />
nutrition facts and has added in-store nutrition kiosks that provide in-depth ingredient and dietary information about menu<br />
items. In other news, Au Bon Pain opened a catering facility in Washington, DC, that will serve as a central commissary for its<br />
growing catering business. The 200-unit bakery-café chain is using this facility to provide freshly baked goods for its smaller<br />
stores as well as for catered events for up to 5,000 guests. Au Bon Pain officials at its Boston headquarters estimated that the<br />
catering facility will increase sales in the Washington, DC, area by as much as 25% over the next year. (QSR Magazine Online<br />
10/15/07; NRN Daily NewsFax 10/5/07; QSR Magazine Online 10/4/07)<br />
Au Bon Pain added two sandwiches to its menu. The Eggplant & Mozzarella Sandwich features grilled eggplant, fresh<br />
mozzarella, tomato, mayonnaise and Mediterranean relish on ciabatta bread, and the Prosciutto Mozzarella Sandwich is made<br />
with prosciutto, mozzarella, romaine, tomato, mayonnaise and Mediterranean relish on a farmhouse roll. (Company Website)<br />
International Activities |<br />
Au Bon Pain inked an agreement with Rex Holdings Co. Ltd. to open 300 outlets in Japan over five years. Tokyo-based Rex<br />
Holdings will open outlets of the chain in Japan’s major cities. Rex Holdings operates more than 1,400 restaurants in Japan,<br />
including the Gyu-Kaku chain as well as Seijo Ishii Co. supermarkets and CostIs Inc., a restaurant distributor. Au Bon Pain<br />
currently has 255 units in the U.S., Taiwan, Thailand and South Korea. (Bloomberg.com 1/16/07)<br />
Au Bon Pain signed a franchise deal with Reins International to open 300 of the bakery-cafes throughout Japan. (NRN Daily<br />
NewsFax 1/18/07)<br />
Technology |<br />
Au Bon Pain has launched its new website that features comprehensive nutritional information. The site allows customers to<br />
search for menu items that meet their dietary needs. The 225-unit, fast-casual bakery-café chain’s website also enables users<br />
to build an entire meal and view its total nutritional content. (Nation’s Restaurant News 8/13/07)<br />
Personnel |<br />
Sue Morelli, CEO<br />
Tim Oliveri, CFO<br />
Wade Winters, V.P. of Purchasing<br />
Willy Nicolini, V.P. of Operations<br />
Tomas John, V.P. of Research & Development<br />
Greg Frechette, V.P. of Marketing<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
28
Auntie Anne's<br />
Headquarters<br />
160-A Route 41, Gap, Pennsylvania 17527 USA<br />
Tel: (717)442-4766 Fax: (717)442-3034<br />
www.auntieannes.com<br />
Ownership: Private<br />
Segment: Limited Service Snack<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 274,500 257,138 236,164<br />
Company-owned ($000) 3,751 5,130 10,263<br />
Franchised ($000) 270,749 252,008 225,901<br />
U.S. Number of Units 741 705 679<br />
Company-owned 8 8 22<br />
Franchised 733 697 657<br />
International Sales ($000) 18,500 17,945 13,873<br />
International Units 182 169 141<br />
Average Sales/Unit ($000) 426 411 362<br />
Concept Positioning |<br />
Auntie Anne's is a chain of specialty shops that sell hand-rolled soft pretzels in a wide variety of flavors. The chain uses a<br />
proprietary recipe for its pretzels that is softer and sweeter than many formulas. Pretzels are rolled by hand and held for no<br />
more than 30 minutes to ensure freshness. Auntie Anne’s is privately held by Auntie Anne’s Inc. and operates more than 900<br />
locations worldwide.<br />
Units are mostly located in shopping-center food courts and average 400–600 sq. ft. Stores are generally open seven days a<br />
week and typically reflect operating hours of each site. The company also has units in other nontraditional locations including<br />
airports and travel plazas. In addition, a satellite retail program is offered that allows stores to operate a second, smaller<br />
modified unit within its venue. These satellite locations feature a limited product line. The company has also developed Auntie<br />
Anne's Café, a 30-seat café concept that serves breakfast, lunch and dinner in addition to its signature pretzels.<br />
Auntie Anne’s was founded in 1987 by Anne Beiler as a way to earn extra income for her family. The first Auntie Anne’s store<br />
opened as a stand in a farmer’s market in Downington, PA. Franchising began in 1989, and the current franchising program<br />
was developed in 1991. In early 2005, Beiler sold her company to a relative, Sam Beiler. The company continues to be run<br />
largely by the Beiler family. Auntie Anne's units are located throughout the U.S. and in other countries such as Malaysia,<br />
Venezuela, Saudi Arabia and the U.K. Currently, there are no major expansion plans for the chain.<br />
<strong>Menu</strong> Positioning |<br />
Auntie Anne's specializes in large, hand-rolled pretzels in 11 flavors including Original, Maple Crumb, Cinnamon Sugar,<br />
Almond, Glazin’ Raisin, Sour Cream and Onion, Garlic, Jalapeño, Parmesan Herb, Whole Wheat and Sesame. Specialty dips<br />
include Caramel, Cheese, Salsa Cheese, Light Cream Cheese, Marinara, Sweet Mustard and Sweet Pretzel Dip. Also on the<br />
menu are Pretzel Dogs, fresh-squeezed lemonade and Dutch Ice frozen drinks. <strong>Menu</strong> prices range from $2.79–$4.69. Checks<br />
average $4.<br />
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published.<br />
29
Promotion Plans |<br />
Auntie Anne’s Pretzels offered Valentine’s Day procrastinators e-cards with a free pretzel coupon. The cards were available<br />
online at the company’s website. (Company Website 4/4/07)<br />
Auntie Anne’s has launched a “Pretzel Perfect Day at the Mall” sweepstakes promotion. The grand prize is a $4,000 holiday<br />
shopping spree with limousine transportation to and from the mall, a personal valet to carry bags, and a $25 Auntie Anne’s gift<br />
card. Additional prizes feature lesser-value shopping sprees and gift cards. The promotion runs through November 30.<br />
(auntieannes.com 10/30/07)<br />
Franchise Activity |<br />
Auntie Anne’s signs a franchise agreement through V&J Foods with basketball star Shaquille O’Neal to open and operate six<br />
Auntie Anne’s units in the Detroit area. The new units are expected to open by the end of the year. Also, O’Neal and his group<br />
will acquire eight existing units in the Buffalo, NY, area. (Nrn.com 10/18/07)<br />
International Activities |<br />
Auntie Anne’s is expanding into Honduras and Greece with its two newest stores. Franchisee PD Pretzel Central America S.A.<br />
opened a Tegucigalpa, Honduras, location on October 5. The company is also signed to open another six Auntie Anne’s<br />
locations over the next five years. Franchisee Wrap Factory South Ltd. is slated to open the first Auntie Anne’s in Athens,<br />
Greece, at The Mall Athens on November 7. The company plans to open another four locations, primarily in the cities of<br />
Athens and Salonica. (Auntie Anne’s Press Release 11/01/07)<br />
Personnel |<br />
Dale Smucker, Director of Purchasing<br />
Sam Beiler, CEO<br />
Jim Moss, CFO<br />
Bill Dunn, COO<br />
John Hagerty, V.P. Research & Development<br />
Judy Schoefer, V.P of Marketing<br />
News & Other |<br />
Auntie Anne has entered into a deal with Coca-Cola North America, which will continue to provide Coca-Cola products in all of<br />
Auntie Anne’s domestic units through 2011. (Nation’s Restaurant News 7/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
30
Avado Brands, Inc.<br />
Headquarters<br />
150 Hancock St., Madison, Georgia 30650 USA<br />
Tel: (706)342-4552 Fax: (706)342-4057<br />
www.avado.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
Chain Brands<br />
Don Pablo's<br />
Hops Grillhouse & Brewery<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 260,500 261,102 300,878<br />
Company-owned ($000) 260,500 261,102 300,878<br />
Franchised ($000) - - -<br />
U.S. Number of Units 117 118 123<br />
Company-owned 117 118 123<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Avado Brands, Inc. is a public company operating in the casual-dining sector. Its brands include Don Pablo’s, a full-service,<br />
high-quality Tex-Mex chain, and Hops Grillhouse & Brewery, one of the country’s largest full-service brewpub chains. Each<br />
chain runs as a separate division responsible for everything from menu selection to financial results. Between the two<br />
concepts, Avado operates 117 units nationwide, all company-owned.<br />
Don Pablo’s units are freestanding, averaging 2,170 sq. ft. The interior has plants and a fountain, which gives it an outdoorsy<br />
feel. The restaurant has a lunch and dinner menu of typical Tex-Mex items. Hops Grillhouse & Brewery units are freestanding,<br />
averaging 2,300 sq. ft., and offer a relax atmosphere with a display-style kitchen that allows guests to view the cooking<br />
process. The restaurants offer traditional American fare along with an award-winning selection of beers.<br />
Avado Brands dates back to 1986 with its founding as The MRG Company, Inc. by Tom E. DuPree, Jr. In 1988 after a merge<br />
with Sunburst Restaurants, the corporate name became Apple South, Inc. Apple South went public in 1991. Apple South was<br />
at one time the largest Applebee’s franchisee; it sold to Applebee’s Holdings in 1997. It acquired the parent of Don Pablo's in<br />
1995. In 1997, Apple South completed three acquisitions: Hops Bar and Grill, McCormick & Schmick’s and Canyon Cafés. It<br />
sold McCormick & Schmick’s in 2001 and Canyon Café in 2003. In late 2001, a new corporate name, Avado Brands, Inc., was<br />
adopted to better reflect multi-brand identity. Avado Brands filed for Ch. 11 bankruptcy protection in 2004 and emerged in<br />
2005. Avado was able to keep its Don Pablo's and Hops restaurant units open during the company's restructuring period.<br />
Personnel |<br />
Paul Seidman, S.V.P. of Marketing<br />
Paul Seidman, S.V.P. of Purchasing<br />
Paul Seidman, S.V.P. of Research & Development<br />
Rick Barbrick, CEO<br />
Kurt Schnaubelt, CFO<br />
Avado Brands hired Modesto Alcala as president and senior vice president. Previously, Alcala served as chief operating officer<br />
for Buca di Beppo. (NRN Daily NewsFax 2/19/07)<br />
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published.<br />
31
Avado Brands named Paul Seidman senior vice president of research and development, purchasing and quality control,<br />
effective April 2. Previously, Seidman served as vice president of food and beverage procurement for Così Inc. (NRN Daily<br />
NewsFax 3/21/07)<br />
News & Other |<br />
Pablo’s Fajita Grill is a newly developed concept from Avado Brands. With an anticipated opening in fall 2007 in Philadelphia,<br />
Pablo’s Fajita Grill is a quick-casual concept featuring fajitas that are grilled to order over an open flame. Avado Brands, parent<br />
company of Don Pablo’s and Hops* restaurants, considers Pablo’s Fajita Grill its future growth vehicle, with 100 units<br />
expected to be in operation by 2012. (Chain Leader p30 12/06; Company Website<br />
Avado Brands Inc. has filed for Chapter 11 bankruptcy protection. The company will continue to operate its restaurants. The<br />
company is also seeking approval for a $67 million debtor-in-possession credit facility from a group of lenders led by DDJ<br />
Capital Management LLC in order to complete a sale of the company’s assets to a buyer committed to the long-term stability<br />
of the company. (Qsrmagazine.com 9/6/07)<br />
Avado Brands Inc. has no plans to close any locations of either its Don Pablo’s Mexican Kitchen or its Hops Grill & Brewery.<br />
However, the company plans to sell all of its assets as part of its Chapter 11 repayment plan. (Bradenton.com 9/12/07)<br />
Avado Brands Inc. sold 83 of its Don Pablo’s and Hops Grillhouse and Brewery restaurants in a total of seven transactions.<br />
Terms for the transactions were not disclosed. Avado’s headquarters and 67 of the restaurants were sold to an affiliate of the<br />
company’s bankruptcy lender, DDJ Capital Management LLC. In addition, DDJ purchased all intellectual property and all<br />
materials and work related to Pablo’s Fajita Grill, a new Avado fast-casual concept under development. A court hearing to<br />
approve the deals is scheduled for December 10. (NRN Daily NewsFax 11/28/07)<br />
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published.<br />
32
Back Yard Burgers<br />
Headquarters<br />
1657 N. Shelby Oaks Dr. Suite 105, Memphis, Tennessee 38134 USA<br />
Tel: (901)367-0888 Fax: (901)367-0999<br />
www.backyardburgers.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 154,000 133,679 113,212<br />
Company-owned ($000) 38,500 34,479 34,912<br />
Franchised ($000) 115,500 99,200 78,300<br />
U.S. Number of Units 180 171 156<br />
Company-owned 44 44 42<br />
Franchised 136 127 114<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 875 827 815<br />
Concept Positioning |<br />
Back Yard Burgers is a fast-casual drive-thru restaurant concept offering a diverse menu of made-to-order burgers, salads,<br />
sandwiches and desserts. Customers are served within 60 seconds of arrival at a service window. There are over 183<br />
company owned and franchised Back Yard Burgers in 20 states.<br />
Units are freestanding and average 820–3,400 sq. ft. They are manufactured modular constructed buildings that feature a<br />
backyard theme. The majority also have a patio for outdoor eating with tables and benches as well as landscaping and<br />
outdoor music. Dine-in facilities have been added to all new and existing units.<br />
Back Yard Burgers was founded in 1987 by Lattimore M. Michael. The first unit opened in Cleveland, MS, and the first<br />
franchised unit opened in 1988 in Clarksdale, MS. The company made its initial public offering in 1993. In 2002, Back Yard<br />
Burger joined YUM! Brands to co-brand 10 stores with Pizza Hut, Taco Bell and KFC restaurants. However, the companies<br />
terminated their agreement in 2004. In 2007, Back Yard Burgers entered into a definitive merger agreement with BBAC, LLC<br />
and its wholly-owned subsidiary, BBAC Merger Sub, Inc. BBAC, LLC is an investment partnership managed by Cherokee<br />
Advisors LLC, an Atlanta-based firm. The total value of the transaction, including debt to be repaid by BBAC, totaled<br />
approximately $38 million. The company has not disclosed future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Back Yard Burgers features charbroiled hamburgers, chicken sandwiches, specialty sandwiches, salads, fries, baked<br />
potatoes, desserts and beverages. Signature items are made-to-order 100% Black Angus beef charbroiled hamburgers. Other<br />
specialty burgers include the vegetarian Gardenburger, Mushroom Swiss Burger and Miz Grazi Spicy Back Yard Burger with<br />
seasoned hot pepper sauce, grated Cheddar, lettuce, tomato, red onion, pickle, mayonnaise, mustard and ketchup. The<br />
beverage menu includes hand-dipped milk shakes, malts and fresh-squeezed lemonade. A catering menu is available. <strong>Menu</strong><br />
prices range from 89¢–$2.79 and checks average $4.59.<br />
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published.<br />
33
Expansion Plans |<br />
Back Yard Burgers Inc. plans to expand its presence in the Southeast as well as venturing out to other regions. In the past, the<br />
chain has only expanded slowly. It has not announced a strategic plan beyond the Southeast expansion. (Nation’s Restaurant<br />
News 7/3/07 p6)<br />
Personnel |<br />
Chris Allisome, Director of Marketing<br />
Tom Castle, Director of Quality, Research, & Development<br />
Lattimore Michael, CEO<br />
Michael Webb, CFO<br />
Tom Castle, V.P. of Purchasing<br />
Bud Shaw, V.P. of Operations<br />
K-Bob’s USA Inc. has hired Michael W. Meyer, former president of Back Yard Burgers, as Chief Operating Officer. Meyers is<br />
also a veteran of MCap Restaurant Group and Whataburger Inc. (Nation’s Restaurant News 9/10/07)<br />
News & Other |<br />
Back Yard Burgers Inc. is being acquired by BBAC LLC for $38 million. The new owners plan to attract additional customers<br />
and continue expanding the chain. (Nation’s Restaurant News Online 6/11/07)<br />
Back Yard Burgers Inc. will hold a special stockholder meeting on August 3 in Memphis, TN, to consider and vote on a<br />
proposal to adopt the previously announced merger agreement in which Back Yard Burgers would be acquired by BBAC LLC.<br />
(Company Release 7/2/07)<br />
Back Yard Burgers Inc. announced that its stockholders approved the merger agreement for the acquisition of Back Yard<br />
Burgers by BBAC, LLC for approximately $38 million, including debt to be repaid by BBAC. Stockholders will receive $6.50 per<br />
share. The transition is expected to be completed in August 2007. (Company Release 8/3/07)<br />
Back Yard Burgers Inc. announced that an investor group’s pending buyout of the company has been delayed by a classaction<br />
lawsuit. The lawsuit accuses the chain of unlawfully disclosing customers’ credit card numbers by omitting only a few<br />
digits of a customer’s credit card number on the receipt. However, the lawsuit does not make any claims for damages or allege<br />
any instance of identity theft. (NRN Daily NewsFax 9/5/07)<br />
Back Yard Burgers’ pending purchase by BBAC LLC now faces an extended expiration date of October 31 for committed<br />
financing. BBAC said in an SEC filing that it wanted to investigate claims made in a lawsuit filed against the chain. The suit<br />
against Back Yard Burgers was settled last month; terms were not disclosed. (NRN Daily NewsFax 10/3/07)<br />
Back Yard Burgers Inc. has been acquired for $38 million by investment group BBAC Merger Sub, Inc., a wholly owned<br />
subsidiary of BBAC, LLC. The buyout was announced in June, but was then delayed by a lawsuit claiming Back Yard failed to<br />
adequately hide information on customers’ credit card receipts. The chain settled the lawsuit in September. BBAC intends to<br />
expand the chain into new markets. In addition, Back Yard Burgers’ headquarters will be moved from Memphis to Nashville<br />
and its management will be rearranged. Back Yard Burgers currently operates and franchises 181 quick-service restaurants in<br />
20 states. (Nation’s Restaurant News Online 11/6/07; Yahoo! Finance 11/7/07)<br />
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published.<br />
34
Bahama Breeze<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809 USA<br />
Tel: (407)245-4000 Fax: (407)245-5389<br />
www.bahamabreeze.com<br />
Ownership: Private<br />
Segment: Full Service Other<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 166,800 164,000 180,000<br />
Company-owned ($000) 166,800 164,000 180,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 32 32<br />
Company-owned 32 32 32<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,200 5,100 5,200<br />
Concept Positioning |<br />
Bahama Breeze is a Caribbean-inspired, upscale casual-dining dinner chain. The restaurant is designed to capture the<br />
essence of the Caribbean by offering guests an escape from everyday life with made-from-scratch Caribbean fare, live island<br />
music, tropical drinks and a relaxed atmosphere. Darden Restaurants owns and operates 32 Bahama Breeze restaurants in<br />
19 states.<br />
Units are freestanding and average 10,000 sq. ft. with seating for approximately 275 customers. The restaurant itself is<br />
reminiscent of an island plantation house, with high ceilings, large and airy dining rooms, lush tropical greenery and a colorful<br />
décor that features Caribbean artwork, natural tile, wicker, rich woods, a tin roof and 20-ft. palm trees. An open-display kitchen<br />
and brick pizza oven add to the comfort of the interior.<br />
Bahama Breeze opened in Orlando in 1996. Darden Restaurants Inc. pioneered and owns the concept. Darden Restaurants<br />
also operates Smokey Bones Barbeque and Grill, Red Lobster and Olive Garden.<br />
<strong>Menu</strong> Positioning |<br />
Bahama Breeze features a full-service Caribbean-fare menu with appetizers, salads, soups, sandwiches, wood-fired pizzas,<br />
seafood, chicken, pork, beef, pasta and desserts. Two signature items are West Indies Ribs and Coconut Prawns. Other items<br />
listed on the authentic Caribbean menu include Sun-Drenched Portobello and Vegetable sandwich and the Oak-Grilled Mahi<br />
Mahi special. Many entrées are available in full- or half-size portions. A kids' menu is available. Full bar service is offered,<br />
serving beer, wine and specialty cocktails. <strong>Menu</strong> prices range from $3.99–$20.99 and checks average $16.24.<br />
Expansion Plans |<br />
Darden Restaurants plans to open 35–40 Olive Gardens and four to 10 Red Lobsters over the next year. In related news, the<br />
company will also debut three to five outlets from its stable of other concepts, which include the Bahama Breeze, Smokey<br />
Bones, Rocky River Grillhouse and Seasons 52 brands. (Foodservice Equipment Reports 3/07 p20)<br />
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published.<br />
35
<strong>Menu</strong> Development |<br />
Bahama Breeze rolled out a Pineapple Coconut Martini. (Company Release)<br />
Bahama Breeze added Barbecue Chicken Flatbread with roasted red peppers, grilled red onions, applewood bacon, sweet<br />
and smoky guava barbecue sauce and mozzarella cheese on a thin and crispy herb-cheese crust. (Company Release)<br />
Bahama Breeze added 12 new items to its menu, including entrées, starters, salads and sandwiches. New selections include<br />
Almond Crusted Fresh Fish, Margarita Chicken, Breeze Wood-Grilled Chicken Breast, Fresh Fish Havana, Coconut Shrimp<br />
Dinner, Lobster & Shrimp Pasta, Barbecue Chicken Breast, Simply Grilled Fresh Fish, Grilled Chicken Breast Tostada, Oak<br />
Grilled Chicken Breast Sandwich, Herb-Roasted Chicken Sandwich, Spinach Dip & Island Chips, Crispy Chicken Club Salad<br />
and Grilled Chicken “BLT” Wrap. (Company Website)<br />
Bahama Breeze added three new entrées and a new dessert to its menu. Selections include: • Grilled Chicken Cobb Salad—<br />
with slices of Island chicken breast, bacon, sliced egg, tomato, cheese, toasted pumpkin seeds and avocado over mixed<br />
greens, served with island vinaigrette and blue cheese dressing • Crab Claws St. Thomas—blue crab claws simmered in<br />
Island citrus butter and served with fire-toasted Cuban bread • Flatbread and Salad or Soup—wood-fired Island flatbread with<br />
a choice of Breeze salad, Caesar salad or any homemade soup • Warm Chocolate Pineapple Upside-Down Cake—with a<br />
chocolate molten center, topped with caramelized pineapple, raspberry sauce, butterscotch brandy sauce and fresh whipped<br />
cream. (Company Website)<br />
News & Other |<br />
Fish and seafood items are being removed from the menu because of concerns about the sustainability of certain species.<br />
According to a recent report in Science from leading ecologists and economists, it was theorized that the world would run out<br />
of seafood by 2048 if declines in marine species continue at the current rate. The report said that overfishing, pollution and<br />
other environmental factors are destroying wild fisheries and threatening the ocean’s ecological balance. The seafood industry<br />
has said that the study is too alarmist. Many restaurants, however, are making adjustments. Darden Restaurants, which owns<br />
Red Lobster, Olive Garden, Smokey Bones and Bahama Breeze brands, and Compass Group’s America division have both<br />
declared changes in seafood purchasing habits based on sustainability concerns. The study also found that nearly one-third of<br />
commercially fished species have already been depleted to the point where catches are now only 10% of historic highs. These<br />
include bluefin tuna, Atlantic cod, Pacific salmon and Alaskan king crab. The study also says that it is not too late to reverse<br />
the trends. Several environmental groups are working to help consumers, restaurants, distributors and retail stores make<br />
responsible choices. (Nation’s Restaurant News 11/27/06 p1)<br />
Darden Restaurants is closing down its Smokey Bones chain. The company shuttered 54 Smokey Bones outlets and two test<br />
Rocky River Grillhouse restaurants. Darden plans to sell the remaining 73 Smokey Bones restaurants still in operation, located<br />
primarily on the East Coast. The move will allow Darden to continue to pursue the purchase of a casual-dining chain with high<br />
growth potential. In related news, the company has also closed nine Bahama Breeze locations in the Midwest and Southwest.<br />
Darden will keep the remaining 23 Bahama Breeze locations open. (Orlando Sentinel 5/08/07 & 5/09/07; NRN Daily NewsFax<br />
5/07/07; Nation’s Restaurant News Online 5/05/07; AFX International Focus 5/07/07; NRN Daily NewsFax 5/08/07;<br />
Indystar.com 5/03/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
36
Baja Fresh Mexican Grill<br />
Headquarters<br />
100 Moody Ct. Suite 200, Thousand Oaks, California 91360 USA<br />
Tel: (805)495-4704 Fax: (805)374-1144<br />
www.bajafresh.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 335,000 346,599 348,245<br />
Company-owned ($000) 160,000 166,881 166,290<br />
Franchised ($000) 175,000 179,718 181,955<br />
U.S. Number of Units 298 299 295<br />
Company-owned 144 142 144<br />
Franchised 154 157 151<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,140 1,167 1,205<br />
Concept Positioning |<br />
Baja Fresh Mexican Grill is a limited-service quick-casual Mexican chain that sets itself apart from its competitors by offering<br />
and preparing fresh, healthy Mexican favorites with the absence of microwaves, can openers, freezers, Styrofoam, lard and<br />
MSG. In addition, salsas are made fresh daily and served at a complimentary, self-serve salsa bar. Only boneless, skinless<br />
chicken breasts are used, the steak is trimmed of all its fat and chips are made in 100% cholesterol-free canola oil.<br />
Units, which are generally situated in end-cap or freestanding locations, carry a refreshing appearance with the use of an open<br />
exhibition-style kitchen and bright lights. Adding to its décor is a black-and-white tiled floor and a dominant use of red, green<br />
and white. Average unit size is about 2,000–3,000 sq. ft. with seating for approximately 60–100 patrons. Takeout service is<br />
also available. Recently, it has recently been reported that the company is downsizing locations to approximately 1,800 sq. ft.<br />
to increase location potential, and is planning several 600 sq. ft. locations in colleges and airports.<br />
In 2005, a new prototype design was unveiled in Pennsylvania, which has since been introduced at new locations. The<br />
updated interior décor features softer lighting, a warmer color scheme, an exhibition kitchen and state-of-the-art fixtures and<br />
equipment. The prototype offers indoor and patio seating for 100 patrons.<br />
Created by James Magglos, the first Baja Fresh opened in Newbury Park, CA, in 1990. Most of the early development of the<br />
concept was done in Conejo Valley, CA. Since its acquisition in 2002, Baja Fresh has been a wholly-owned subsidiary of<br />
Wendy's International. In 2006, Wendy's announced the sale of Baja Fresh for $31 million to an investment group led by David<br />
Kim, a major West Coast franchisee of Wendy's and Cinnabon. In 2007, Baja Fresh laid out its strategic expansion plan, which<br />
includes new units across the U.S., specifically California, Florida, Georgia, Illinois, Missouri, Nevada and Washington, D.C. In<br />
addition, Baja Fresh is aggressively seeking multi-unit franchisees interested in international markets. There are already more<br />
than 300 Baja Fresh locations and expansion is planned for California, Nevada, Washington, D.C., Missouri, Illinois, Georgia<br />
and Florida.<br />
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published.<br />
37
<strong>Menu</strong> Positioning |<br />
Baja Fresh's menu features a wide variety of freshly prepared Mexican-style foods including burritos, “Baja-style” tacos,<br />
quesadillas, fajitas, salads, soups and sides. Popular menu items include the Mango Chipotle Chicken Salad, Diablo Shrimp<br />
Burrito, Smoky Queso Fundido, Cabo Shrimp Burrito and the Bare Burrito (served without the tortilla). A self-serve salsa bar<br />
and an all-you-can-drink self-serve beverage and iced tea station are featured as well. Takeout and party platters are<br />
available. Kids’ menu items are offered. <strong>Menu</strong> prices range from $1.55–$7.80. Checks average $7.50.<br />
Expansion Plans |<br />
Baja Fresh opened a new location in Camarillo, CA. The unit is the company’s second in Camarillo. (Earthtimes.org 1/11/07)<br />
Promotion Plans |<br />
Baja Fresh Mexican Grill has teamed up with “American Idol” host Ryan Seacrest for a Los Angeles radio ad campaign. The<br />
slated 26-week campaign, which launched on KIIS-FM during Seacrest’s morning show, will use the voice of the radio<br />
personality to describe Baja Fresh menu items. Seacrest is reportedly a fan of the 291-unit chain. (Nation’s Restaurant News<br />
10/29/07)<br />
<strong>Menu</strong> Development |<br />
Baja Fresh rolled out several new menu items. The chain added Nacho Burrito, a 23-oz. burrito with fried tortillas, grilled<br />
chicken, black and pinto beans, rice, sliced jalapeños, salsa cream and smoky queso fundido cheese ($5.75); Mango-Chipotle<br />
Chicken Salad ($6.45); Pronto Nachos, chips with queso fundido ($1.35); a Cinnamon-Sugar-Dusted Churro (99¢); and a<br />
Cinnamon-Flavored Aztec Chocolate Chip Cookie ($1.29). (NRN Daily NewsFax 5/17/07)<br />
Baja Fresh Mexican Grill introduced new salsas for a limited time. The salsas are Molcajete, with smoky chargrilled tomatoes,<br />
charred jalapeños and cilantro, and Mango, with tropical flavors of mango, chilies and lime as well as sweet red peppers,<br />
apple, red onions and cilantro. (Company Release 6/29/07)<br />
Baja Fresh Mexican Grill will launch two shrimp and two meat-and-potato burritos, chili and a tomatillo-mango salsa on<br />
September 12. The Cabo Shrimp Burrito features rice, black beans, Jack cheese and tomatillo and lime yogurt. The Diablo<br />
Shrimp Burrito contains rice, beans, Jack cheese and a chipotle sauce. The chain is also rolling out the $5.95 Big Beef Burrito<br />
in regular and spicy versions. (NRN Daily NewsFax 8/31/07)<br />
Baja Fresh Mexican Grill launched its Nacho Burrito and Americano Soft Taco. The Nacho Burrito includes chicken, Jack and<br />
Cheddar cheeses, black or pinto beans, rice, Smokey Queso Fundido, jalapeños and Salsa Crema. The Americano Soft Taco<br />
is made with a choice of charbroiled chicken, pork carnitas or charbroiled steak, served in a home-style grilled flour tortilla with<br />
lettuce, chopped tomato, Jack and Cheddar cheeses and salsa. (Company Website)<br />
Baja Fresh Mexican Grill is testing a new item called a huarache in Arizona. The item is a corn-flour flatbread pizza, topped<br />
with shrimp, steak or chicken with black beans, sautéed peppers and onions, cotija cheese and mango-tomatillo salsa. The<br />
huarache is priced at $5.95–$6.95. (NRN Daily NewsFax 10/9/07)<br />
Personnel |<br />
Jim Hicks, Director of Operations & Services<br />
Tim Koch, Director of Purchasing<br />
John Rogan, Director of Research & Development<br />
Jerry De Lucia Wildrick, Marketing Director<br />
David Kim, CEO<br />
Adrian Portier, CFO<br />
Baja Fresh Mexican Grill hired Jerry de Lucia as Director of Marketing. Previously, De Lucia served at Catalina Restaurant<br />
Corp. as operator of the Coco’s and Carrows family-dining chains. De Lucia replaces Meade Wildrick. Baja Fresh Mexican<br />
Grill also hired Tim Koch as Director of Purchasing. Previoulsy, Koch served as purchasing manager for CKE Restaurants Inc.<br />
(NRN Daily NewsFax 4/30/07)<br />
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published.<br />
38
Baja Fresh Mexican Grill hired Michael Conway as General Counsel and Jim Hicks as Director of Operations Services.<br />
Conway brings 11 years of legal experience to the company and Hicks previously served as Director of Operations for<br />
National Everclean Services. (Company Release 6/14/07)<br />
Baja Fresh Mexican Grill hired Craig Hopkins as Vice President of Franchise Development and Real Estate. Previously,<br />
Hopkins served as Director and Vice President of Franchise Development for CKE Restaurants Inc. (NRN Daily News Fax<br />
8/15/07)<br />
Baja Fresh Mexican Grill hired Michael Napolitano as Director of Construction and Design. Previously, Napolitano was<br />
employed with GreenbergFarrow Architects. (Latimes.com 9/5/07)<br />
Baja Fresh Mexican Grill hired Harry Yu as Manager of Information Technology. Previously, Yu served as Manager of<br />
Information Technology for Rock-Ola Manufacturing Co., a jukebox manufacturer. (Restaurantnewsresource.com 9/21/07)<br />
News & Other |<br />
Baja Fresh is looking to reinvigorate itself by making some management changes and updating its menu. The chain’s new<br />
owners, BF Acquisitions Holdings LLC, named James Walker, a foodservice veteran, Baja Fresh’s new president. In addition,<br />
the company is adding a new director of research and development and noted that there would be no major changes to field<br />
management and no store closures. Baja Fresh also plans to make unspecified “menu tweaks.” (Nation’s Restaurant News<br />
12/18/06 p6)<br />
Baja Fresh Mexican Grill signed a five-year beverage contract with The Coca-Cola Company to be its beverage provider. The<br />
company will provide soft drinks for all of the chain’s locations. The contract also includes Minute Maid juices and Evian and<br />
Dasani water. (Qsrmagazine.com 7/19/07)<br />
HMSHost Corp. is working with Baja Fresh Mexican Grill to open express units in airports and travel centers. Bethesda, MDbased<br />
HMSHost will open the first Baja Fresh Express outlets at Los Angeles International Airport and on the Pennsylvania<br />
Turnpike. Baja Fresh, operator and franchisor of 291 restaurants nationwide, will premiere its first limited-menu format at these<br />
outlets. In addition, HMSHost Corp. has signed an agreement with Brinker International to develop 26 restaurants in airports<br />
and toll-road plazas over the next five years. Restaurants will include Brinker’s Chili’s Grill & Bar, Romano’s Macaroni Grill and<br />
On The Border Mexican Grill & Cantina. (Nation’s Restaurant News Online 9/13/07; NRN Daily NewsFax 9/7/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
39
Bakers Square<br />
Headquarters<br />
400 W. 48 Ave., Denver, Colorado 80216 USA<br />
Tel: (303)296-2121 Fax: (303)672-2677<br />
www.bakerssquarerestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 229,000 225,000 220,380<br />
Company-owned ($000) 229,000 225,000 220,380<br />
Franchised ($000) - - -<br />
U.S. Number of Units 151 150 149<br />
Company-owned 151 150 149<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,525 1,500 1,479<br />
Concept Positioning |<br />
Bakers Square Restaurant and Pies are family-oriented, full-service restaurants specializing in freshly baked pies<br />
accompanied by a full and creative lunch and dinner menu. The atmosphere is family oriented and friendly. The extensive<br />
menu offers breakfast, lunch and dinner with and specializes in home-cooked fare and delicious pies. All items are prepared<br />
on-premise. The batter for some of the rolls and muffins is prepared at a central location. Frozen fruit pies and pie shells for<br />
cream pies are made a production facilities and final production of cream pies is done at a number of satellite facilities. While<br />
Baker’s Square holds appeal for a wide demographic of diners, it is especially appealing to families. The parent company of<br />
Baker’s Square is VICORP Restaurants Inc. Baker’s Square is 100% company owned. Baker’s Square boasts 146 restaurants<br />
in California and the upper Midwest.<br />
Units are freestanding and are generally found in suburban locations. Buildings average about 4,200 sq. ft. seating 118<br />
patrons. Stores feature a contemporary design with ample natural lighting, high open-beam ceilings, clear-glass lighting and<br />
decorative quarry tile floors. Stores offer booth seating along the windows and tables in the interior. Newer units feature a<br />
separate bar which serves beer, wine and espresso beverages. The revamped exterior features brick, stucco and rough-hewn<br />
cedar with a red tile roof. Exterior remodeling was necessary for the addition of the “Bakery Theater” which brings the act of<br />
baking into the dining experience.<br />
Baker’s Square Restaurants were originally called Mrs. C’s and began in the 1970’s. Pillsbury Co. soon purchased Mrs. C’s<br />
and named it Poppin Fresh Pies. In 1983, VICOR acquired the for $38 million, with Pillsbury retaining the Poppin Fresh name.<br />
VICORP changed the name to Bakers Square—Restaurant and Bakery. In 2001, parent Vicorp Restaurants merged with<br />
affiliates of Goldner Hawn Johnson & Morrison Inc. and BancBoston Capital, taking the company private. The company has<br />
not disclosed any expansion plans at this time.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
40
<strong>Menu</strong> Positioning |<br />
Bakers Square's menu features a wide variety of breakfast, lunch and dinner items. The breakfast menu is available all day<br />
and features eggs, omelettes, skillets, griddle favorites and sides. The lunch and dinner menus feature appetizers, soups,<br />
salads, burgers, melts, pitas, focaccia, sandwiches, pasta, homestyle classics, sides, desserts and beverages. The chain's<br />
signature items include its line of fruit and cream pies and other fresh baked goods including muffins, breads and cookies.<br />
Popular entrées include its Chicken & Broccoli Skillet, Sesame Orange Chicken Salad, Honey Mustard Portabella Chicken<br />
Melt and the Garlic Mushroom Chicken entree. Bakers Square has upgraded its menu offerings with over 60 new items, a<br />
weekend brunch program and a bar area serving beer, wine and espresso beverages. Other additions include new appetizers,<br />
grilled panini, baguette and focaccia sandwiches, Supreme Crepes and new line of Bakers Square Ultimate Fruit Pies. These<br />
menu additions and new design elements were tested in a revamped Illinois unit and are being implemented in restaurants<br />
systemwide. Baker’s Square has recently joined up with Perini Ranch Steakhouse to offer Tom Perini’s steak seasoning on<br />
steaks, sandwiches and salads. The restaurant serves a wide range of non-alcoholic beverages including espresso<br />
beverages. A kids' menu is available as well as a lite appetites section of the menu. The restaurant also participates in<br />
HealthyDiningFinder.com and lists the nutritional information for its menu items online. <strong>Menu</strong> prices range from $1.39–$9.59<br />
for breakfast items and $1.79–$12.99 for lunch and dinner items. Checks average $9 for breakfast and $14 for dinner.<br />
<strong>Menu</strong> Development |<br />
Bakers Square added Funky Chunky Cherry for a limited time. The pie is prepared with cherry filling and a chunky chocolate<br />
cherry supreme with tiny chocolate chips and amarena cherries, topped with whipped cream, chocolate chips, red shavings<br />
and ganache rosettes. (Company Website)<br />
Bakers Square added a new combination meal featuring the Grown-Up Grilled Cheese Sandwich and Cream of Tomato Basil<br />
Soup for a limited time. The item is priced at $4.99. (Company Release)<br />
Bakers Square debuted new ciabatta sandwiches, starting at $4.99. Each is served with a side of fries. Selections include<br />
Chicken Avocado Ciabatta, grilled chicken, chunky guacamole, pepper Jack cheese, tomato and cilantro-ranch dressing on a<br />
garlic-butter-grilled ciabatta; Sizzlin’ Steak Ciabatta, sliced roast beef, red and green bell peppers, onions and American and<br />
pepper Jack cheese served on a garlic-butter-grilled Ciabatta bun; Eggplant Parmesan Ciabatta, breaded eggplant,<br />
mozzarella, basil-mayonnaise and marinara sauce on garlic-butter ciabatta; and Sunrise Ciabatta, crisp bacon, green bell<br />
pepper, onions and scrambled eggs with Hollandaise sauce and Cheddar cheese on a grilled ciabatta bun. (Company Promo;<br />
Company Website)<br />
Bakers Square and Village Inn are launching a “Legendary Restaurants. Legendary Recipes” menu-marketing program, which<br />
adapts recipes from small independent restaurants around the country as specials on its menu. Lunch and dinner menus<br />
currently include a sirloin baguette sandwich with a steak-seasoning blend created by Perini Ranch Steakhouse in Buffalo<br />
Gap, TX. The November menu at both restaurant chains features three stuffed French toast dishes from recipes developed at<br />
The Maples Inn in Bar Harbor, ME. Vicorp Restaurants, parent of Bakers Square and Village Inn, researched consumer dining<br />
magazines, local cook-offs and competitions to find established, local-favorite restaurants. (Restaurants & Institutions Online<br />
11/6/07)<br />
Technology |<br />
Bakers Square has added free Wi-Fi Internet access in all of its 25 Minneapolis/St. Paul restaurants. The service is being<br />
marketed as “Wi-Pie” to play off the chain’s extensive pie selection. Bakers Square has not said whether the service will be<br />
extended to other locations outside of the Twin Cities area. Denver-based Vicorp is the parent and operator of 146 Bakers<br />
Square restaurants in California and the Upper Midwest. (Nation’s Restaurant News Online 10/12/07)<br />
Personnel |<br />
Bob Darren, Director of Research & Development<br />
Tony Carroll, CFO<br />
Mark Hampton, V.P. of Purchasing<br />
Tim Casey, President<br />
Susan Hernandez, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
41
Barnhill's Buffet<br />
Headquarters<br />
1210 Briarville Road Building F, Madison, Tennessee 37115 USA<br />
Tel: (615)277-1234 Fax: (615)277-1220<br />
www.barnhills.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 93,000 93,000 92,500<br />
Company-owned ($000) 93,000 93,000 92,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 41 41 41<br />
Company-owned 41 41 41<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,200 2,150 2,125<br />
Concept Positioning |<br />
Barnhill’s Buffet is a limited-service concept offering traditional American foods with an emphasis on Southeastern cuisine.<br />
Barnhill Buffet, Inc. is owned and operated by Dynamic Management Company and private equity firm Jefferies Capital<br />
Partners. Barnhill’s is a national chain with restaurants scattered throughout the Southeast and Midwest.<br />
Units are either freestanding or located in strip malls. The concept’s décor carries the idea of comfort beyond its food with a<br />
bright and homey ambiance. The look is achieved with carpeting, natural wood paneling and plants hanging over the tops of<br />
each buffet area. Breakfast is served on the weekends at some locations. Units seat 285-340 diners and are estimated at<br />
more than 8,000 sq. ft.<br />
Barnhill’s was founded in Pensacola, FL, in 1991 by former WesterN SizzliN franchisee Steve Barnhill. In 2005, private equity<br />
firm Jefferies Capital Partners acquired Barnhill’s Buffet for an undisclosed sum. The company plans to open eight new units<br />
per year over the next five years.<br />
<strong>Menu</strong> Positioning |<br />
Barnhill’s Buffet is open for lunch and dinner seven days a week; some locations also offer breakfast on weekends. The<br />
breakfast selection includes an omelet bar, pancakes, French toast, sausage, bacon, biscuits and gravy and the chain’s<br />
signature Cinna’Barn Rolls. For lunch and dinner, Barnhill’s traditional American menu features classic buffet items like salads,<br />
vegetables, casseroles, seafood, roasted, fried and grilled meats and desserts. Signature items include Golden Fried Chicken,<br />
Fresh Vegetables and Sides, Hand- Battered Catfish, Meatloaf, Chicken & Dumplings and Sirloin Steak served nightly after 4<br />
p.m. Desserts include assorted cakes, pies, cheesecakes, cobblers, cookies and ice cream sundaes. Alcohol is served and<br />
there are reduced menu pricings available for children and seniors. Catering packages are available for groups of any size.<br />
<strong>Menu</strong> prices range from $3–$8.99. Checks average $10.26.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
42
Promotion Plans |<br />
Barnhill’s Buffet is offering coupons for $4.99 breakfasts on Saturdays and Sundays, $2 off adult buffet, $4.99 lunch Monday–<br />
Friday senior special and $5.99 dinner Monday–Friday senior special. The coupons are valid through January 10. (Company<br />
Website 12/21/06)<br />
Personnel |<br />
Bob Langford, CEO<br />
Mary Gore, V.P. of Purchasing<br />
Bob Speck, V.P. of Operations<br />
Kori Langford, V.P. of Marketing<br />
Mark Francisco, V.P. Research & Development<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
43
Baskin-Robbins<br />
Headquarters<br />
130 Royall St., Canton, Massachusetts 02021 USA<br />
Tel: (781)737-3000 Fax: (781)737-4000<br />
www.baskinrobbins.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 590,000 554,000 535,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 590,000 554,000 535,000<br />
U.S. Number of Units 2,827 2,780 2,629<br />
Company-owned - - -<br />
Franchised 2,827 2,780 2,629<br />
International Sales ($000) 677,000 594,000 501,000<br />
International Units 3,016 2,856 2,572<br />
Average Sales/Unit ($000) 210 205 215<br />
Concept Positioning |<br />
Baskin-Robbins is a limited-service provider of frozen desserts ranging from signature ice cream flavors to beverages<br />
including its popular Cappuccino Blast and BR Smoothies. Baskin Robbins boasts the slogan “Irresistible Treats, Smiles and<br />
Fun!" and incorporates an energetic feel to the interior space. The stores offer a full line of frozen treats from its signature ice<br />
cream flavors, including non-fat, low-fat and no-sugar-added, to frozen yogurt ice cream and cake creations and a line of<br />
blended beverages. The customer base spans all demographic groups. Dunkin’ Brands owns Baskin-Robbins and franchises<br />
the chain nationwide.<br />
Units are freestanding stores that generally occupy 900–1,500 sq. ft. and are located within blocks of retail shops or in<br />
shopping centers. Units feature seating at booths and/or individual tables and are refurbished as needed on an ongoing basis.<br />
Stores strive to add a fun atmosphere with décor in bright pinks and blues and busy product photographs. Some units also<br />
have drive-through window service. In addition, Baskin-Robbins has a presence in nontraditional outlets including convenience<br />
stores, airports and universities. Many units are co-branded with Dunkin’ Brands primary growth chain, Dunkin’ Donuts.<br />
In 1945, Irvin Robbins opened his first ice cream store in Glendale, CA. It was originally called the Snowbird, but when<br />
Robbins joined forces with his brother-in-law, Burton Baskin, who had his own ice cream stores, Baskin-Robbins was born. In<br />
1959, the company started franchising outside California and in 1974, the first international location opened in Brussels,<br />
Belgium. Allied Domecq acquired the chain in 1973. Today, Baskin-Robbins is the largest ice cream franchise operation in the<br />
world. Dean Foods Company manufactures and distributes Baskin-Robbins ice cream. In two territorial franchise areas, ice<br />
cream is produced and distributed by Alpenrose Dairy or Klink Brothers.<br />
In 2004, Allied Domecq Quick Service Restaurants changed its name to Dunkin' Brands in an effort to reflect its flagship brand.<br />
In 2005, Allied Domecq was acquired by Pernod Ricard and Fortune Brands. In late 2005, Pernod Ricard sold Dunkin' Brands<br />
to a group of private-equity firms for $2.43 billion. The buyers included Bain Capital Partners, the Carlyle Group and Thomas<br />
H. Lee Partners. Future expansion will continue to focus on the development of co-branded units with Dunkin’ Donuts.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
44
<strong>Menu</strong> Positioning |<br />
Baskin-Robbins is open from 11:00 a.m.–10:00 p.m. and offers a menu that features ice cream, frozen yogurt, sherbets, ices,<br />
ice cream cakes and frozen beverages. Signature items include the more than 100 ice cream flavors that rotate through stores<br />
annually. Favorite ice cream flavors include Chocolate, Vanilla, Jamoca, Mint Chocolate Chip, Pistachio Almond, Pralines ‘n<br />
Cream, Cherries Jubilee, Oreo Cookies ‘n Cream, Chocolate Chip Cookie Dough, Very Berry Strawberry and Butter Pecan.<br />
Flavors of the month and seasonal flavors include Crème Brulee, Strawberry Shortcake, Love Potion #31 and New York<br />
Cheesecake. Non-fat, low-fat and no-sugar-added ice cream options are available. Frozen beverages include Blasts,<br />
smoothies, shakes and malts. <strong>Menu</strong> prices range from $1.49–$5.94 for ice cream and $3.25–$5.25 for frozen beverages.<br />
Checks average $3.50.<br />
Expansion Plans |<br />
Baskin-Robbins plans to open 40–60 units in the St. Louis area within the next four to five years. There are currently seven<br />
outlets in the St. Louis market. The expansion is part of Baskin-Robbins’ plan to rapidly boost the number of outlets worldwide.<br />
The ice cream chain is hoping to open 400 locations in the next four to five years, with about 100 of those planned for the U.S.<br />
in 2007. (St. Louis Dispatch 3/16/07; STLToday.com 3/16/07)<br />
Baskin-Robbins will open a unit in Wichita, KS. The Klinke Brothers Ice Cream Co. will open the location at the Shops at<br />
Chadsworth. Baskin-Robbins is returning to the Wichita area after a five-year absence. (Kansas.com 9/4/07)<br />
Promotion Plans |<br />
Baskin-Robbins debuted its first television marketing campaign in two years. The ads focus on the chain’s newest products,<br />
Reese’s Peanut Butter Cup shakes and sundaes. The family oriented 15-second spots feature the company’s new tagline,<br />
“Yay!” (Nation’s Restaurant News Online 4/30/07)<br />
Baskin-Robbins is launching a promotion using the new animated film “Surf’s Up.” Stores will promote movie-themed products<br />
and an instant-win game. Seven new “Surf’s Up” frozen treats have been created, including two ice-cream flavors and Fruit<br />
Blast Smoothies. In addition, Baskin-Robbins will begin a 31-city “Surf’s Up” tour using a decked-out cruiser set to stop in hightraffic<br />
locations and at events. (PROMOMagazine.com 6/7/07)<br />
Baskin-Robbins created a commercial that shows a grandfather changing his granddaughter’s test grade from an “F” to an “A”<br />
so that her mother would buy her a Baskin-Robbins treat as a reward for good marks. The chain is now getting heat for the<br />
advertisement, but Baskin-Robbins doesn’t take the angry phone calls as a bad thing. The phone calls, the company claims,<br />
mean that the brand is finally getting attention again. Recently, the chain has tested new prototypes for stores, renovated<br />
several existing locations with interactive sundae stations and signed franchise agreements to build the first freestanding<br />
shops in 10 years. (Boston.com 6/17/07)<br />
Baskin-Robbins teamed with United Blood Services to offer the “Pint for a Pint” campaign. The drive offers a pint of Baskin-<br />
Robbins ice cream to each blood donor in the Santa Maria and Lompoc, CA, area through August 11. The UBS needs 270<br />
people a day to donate blood to keep supplies stocked, and the numbers are falling short, so the ice cream serves as an extra<br />
incentive. (Santamariatimes.com 7/27/07)<br />
Baskin-Robbins is celebrating the rollout of a new line of Oreo-flavored treats with an ice-cream cake giveaway and a<br />
nationwide “Lick-A-Thon.” The cake giveaway is an online promotion in which Baskin-Robbins will award $40 in gift cards that<br />
can be redeemed for an ice-cream cake every day until September 30. The ice-cream cone Lick-A-Thon September 20 was to<br />
benefit libraries, clubs, local schools and charities. Each participating location rewarded the participant who could lick an icecream<br />
cone the fastest. The Oreo-flavored treats include sundaes, ice-cream cakes, shakes and cones, and are available<br />
through November 4. (Nation’s Restaurant News 9/3/07)<br />
Baskin-Robbins is offering 10 Oreo ice cream selections for the back-to-school season. New ice cream flavors include Jamoca<br />
Oreo, Chocolate Oreo and Oreo Cookies ’n Cream; also offered are treats such as an Oreo Layered Sundae, Chocolate Oreo<br />
Shake, Oreo Cookie Cake and Oreo ’n Cookies Cappuccino Blast. (Cincinnatti Post 9/5/04)<br />
<strong>Menu</strong> Development |<br />
Baskin-Robbins debuted two new shakes, Pecan Pie and Merry Mint. Pecan Pie blends Pralines 'N Cream ice cream with<br />
graham cracker crust, poured over caramel and finished with whipped cream and more graham cracker crust. Merry Mint<br />
features Peppermint ice cream mixed and poured over hot fudge, topped with whipped cream and red and green sprinkles.<br />
(Company Website; Company Promo)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
45
Baskin-Robbins introduced two layered sundaes, Lumps of Coal and Merry Mint. Lumps of Coal mixes Chocolate and World<br />
Class Chocolate ice creams, finished with brownie bits, hot fudge, chopped Heath bars and whipped cream and drizzled with<br />
chocolate syrup. Merry Mint blends Peppermint and Mint Chocolate Chip ice creams topped with pieces of white cake, hot<br />
fudge, marshmallow, whipped cream and red and green sprinkles with a candy cane. (Company Website)<br />
Baskin-Robbins added two new flavors, Swiss Chocolate Treasure and Love Potion #31. Swiss Chocolate Treasure features<br />
blueberry lavender ice cream mixed with milk and Swiss chocolate ice creams and chocolate-filled lavender cups. Love Potion<br />
#31 blends white chocolate and raspberry ice creams with a raspberry ribbon and raspberry-filled cups and chocolate chips.<br />
(Company Website)<br />
Baskin Robbins rolled out Candy Bar Madness though May. The items feature Hershey’s brands and include Reese’s Peanut<br />
Butter Cup ice cream, Heath Bar Crunch ice cream, Reese’s Peanut Butter Cup Sundae, Heath Bar Crunch Sundae,<br />
Kissables Sundae, Kissables Cake, Kiss Cake, Reese’s Peanut Butter Cup Shake and Heath Bar Shake. (Company<br />
Release3/13/07)<br />
Baskin-Robbins added Surf’s Up Layered Sundae, with scoops of Very Berry Strawberry, World Class Chocolate and Nutty<br />
Coconut ice creams with layers of pineapple toppings and crushed graham crackers and topped with a half banana, a Surf’s<br />
Up chocolate bar and whipped cream. (Company Website)<br />
Baskin-Robbins will offer a completely trans fat-free menu, including its ice cream and ribbons, by January 1, 2008.<br />
(Dunkindonuts.com 8/27/07)<br />
Baskin-Robbins debuted a Fudge Crunch Cake, made with creamy fudge and crisp chocolate crunchies sandwiched between<br />
two layers of ice cream. (Company Website)<br />
Personnel |<br />
Jon Luther, CEO<br />
Kate Smith Lavelle, CFO<br />
Will Kussell, COO<br />
Joe Scafido, Chief <strong>Menu</strong> & Concept Officer<br />
News & Other |<br />
Baskin-Robbins continues to revamp unit interiors in an effort to increase sales. The chain is adding a “sundae station” that is<br />
located under a pink umbrella. It allows patrons to add toppings such as hot fudge, pineapple sauce and crushed Oreo cookies<br />
to their ice cream. Other décor changes include new wallpaper paint, tables and chairs as well as new outdoor signage.<br />
Baskin-Robbins rolled out the design initiatives last year and so far 250 makeovers have been done nationally. The chain<br />
plans to redo all 2,700 stores over the next five years. (Ventura County Star 2/11/07)<br />
Baskin-Robbins is testing new prototypes and renovating existing stores. In addition, the 2,800-unit chain is redesigning its<br />
logo and adding new features, such as a sundae station, full-length wall murals and a step-up rail in front of the dipping<br />
counters for children to see the ice cream flavors. Test stores have been operating in Las Vegas and more than 200 stores are<br />
undergoing the transformation. In other news, Baskin-Robbins has signed on franchisees to build the chain’s first stand-alone<br />
shops in a decade. Baskin-Robbins first opened in 1953 as Baskin-Robbins 31 Ice Cream with the idea of offering a different<br />
flavor for every day of the month. (Boston.com 6/17/07)<br />
Domino’s Pizza India Ltd. is co-branding with Baskin-Robbins to test ice cream at its 147 units in India. Vanilla, strawberry,<br />
chocolate and butterscotch ribbon will be offered in three portion sizes. Domino’s has more than 8,000 restaurants in 55<br />
countries and Baskin-Robbins operates more than 5,600 units worldwide. (NRN Daily NewsFax 7/20/07)<br />
Baskin-Robbins is holding a Heartfelt Sweetness fundraising promotion to help the San Diego community rebuild following<br />
recent fires. On December 5, from 5 p.m.–10 p.m., all 30 San Diego-area Baskin-Robbins locations will donate 10% of total<br />
sales to the After the Fire Fund, established by community group San Diego Foundation. Proceeds will go toward local<br />
nonprofits engaged in disaster response, recovery and rebuilding. (Smartbrief.com 11/30/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
46
Beef O'Brady's<br />
Headquarters<br />
5510 W. LaSalle St. Suite 200, Tampa, Florida 33607 USA<br />
Tel: (813)226-2333 Fax: (813)226-0030<br />
www.beefobradys.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 217,000 180,000 127,500<br />
Company-owned ($000) 5,000 4,000 2,500<br />
Franchised ($000) 212,000 176,000 125,000<br />
U.S. Number of Units 214 190 157<br />
Company-owned 4 4 4<br />
Franchised 210 186 153<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,075 1,000 900<br />
Concept Positioning |<br />
Beef O’Brady’s is a family-friendly sports pub concept with a cozy, neighborhood emphasis. The chain specializes in traditional<br />
pub fare, such as burgers, sandwiches and Buffalo wings. Each location frequently sponsors local sports organizations,<br />
furthering its appeal to families. Family Sports Concepts Inc. currently operates Beef O’Brady’s in 20 states in the South,<br />
Midwest and Southeastern U.S.<br />
Units seat 70–100 guests and measure approximately 2,500–3,000 sq. ft. They are often situated in supermarket-anchored<br />
shopping centers in suburban markets. The full-service pubs also have satellite television and 100-sq.-ft. game rooms.<br />
Beef O’Brady’s debuted in Tampa, FL, in 1985. Founder Jim Mellody sold the chain in 1998 to Chuck Winship and Gene<br />
Knippers, who began franchising the concept under the parent company Family Sports Concepts Inc. Within four years of the<br />
acquisition, the chain doubled in size to more than 80 units. Specific expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Beef O’Brady’s extensive menu offers a wide variety of casual pub foods including Buffalo wings, appetizers, soups, salads,<br />
burgers, sandwiches, chicken, O’Brady baskets and beverages. Its signature menu items are Buffalo wings, served with<br />
founder Jim Mellody’s signature sauce available in mild, medium, hot, extra hot or Nuclear. Beef O’Brady’s burgers and<br />
sandwiches are served with a pickle spear and chips. Its chicken sandwiches include a Buffalo-style chicken breast, Beef’s Big<br />
Bleu, smothered with ham and melted Swiss cheese and served with blue cheese or honey mustard sauce and a standard<br />
chicken sandwich with mayonnaise, lettuce, tomato, onion and pickle. The burgers are cooked-to-order with a third-pound of<br />
sirloin. A kids’ menu is available. <strong>Menu</strong> prices range between 29¢ and $25.99 for Buffalo wings and $2.29–$8.99 for menu<br />
items. Checks average $8.35.<br />
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47
<strong>Menu</strong> Development |<br />
Beef O’ Brady’s added two O’ Brady’s Baskets to its menu. New additions are the Boneless Wing Basket, with crunchy<br />
breaded chicken tossed in a choice of wing sauce and served with french fries and coleslaw, and Chili Cheese Dog Basket,<br />
two hot dogs smothered with chili and shredded Cheddar-Jack cheeses, served with french fries and coleslaw. (Company<br />
Website)<br />
Personnel |<br />
Wayne Hoeye, Director of Purchasing<br />
Chuck Winship, CEO<br />
Jim Humbeldt, CFO<br />
Scott Taylor, COO<br />
Julie Tomas, V.P. of Marketing<br />
Scott Taylor, V.P. of Development<br />
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published.<br />
48
Ben & Jerry's<br />
Headquarters<br />
30 Community Drive, South Burlington, Vermont 05403 USA<br />
Tel: (802)846-1500 Fax: (802)846-1610<br />
www.benjerry.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 144,000 125,000 101,500<br />
Company-owned ($000) 4,000 5,000 4,000<br />
Franchised ($000) 140,000 120,000 97,500<br />
U.S. Number of Units 431 420 374<br />
Company-owned 11 15 14<br />
Franchised 420 405 360<br />
International Sales ($000) 51,000 42,500 37,500<br />
International Units 222 190 163<br />
Average Sales/Unit ($000) 340 330 320<br />
Concept Positioning |<br />
Ben & Jerry's Scoop Shop is the retail arm of the famous ice-cream maker. Shops sell Ben & Jerry's-branded super premium<br />
ice cream, as well as cakes, smoothies and frozen drinks. Franchised stores are independently owned and operated through<br />
the PartnerShop Program. In the program, Ben & Jerry's donates PartnerShops to nonprofit organizations, waiving standard<br />
franchise fees, and allows nonprofits to donate to themselves through the store. There are currently a total of 580 Scoop<br />
Shops and PartnerShops in operation, comprised of 430 stores across the U.S. and 150 international units in Asia, Europe,<br />
Mexico and the Caribbean.<br />
Most units are designed to operate as inline sites in strip shopping centers, downtown areas or major shopping malls. Ben &<br />
Jerry’s units average 800 sq. ft. with limited seating, though the most recent models can be altered to fit almost any space,<br />
including small 200 sq. ft. stands. Interior décor and exterior design is lively and bright, featuring the brand's signature bovinelike<br />
design and a blue-sky reminiscent color scheme.<br />
In 2000, Ben & Jerry's was acquired by Unilever. In 2006, Ben & Jerry's partnered with PepsiCo for a multi-year licensing<br />
agreement to sell its eight-ounce glass bottled milkshakes in grocery and convenience stores nationwide. Future plans call for<br />
the development of over 700 units by 2010.<br />
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published.<br />
49
<strong>Menu</strong> Positioning |<br />
Ben & Jerry’s Scoop Shops offer a quick-service menu showcasing super premium ice cream, frozen drinks, real fruit<br />
smoothies, soft serve ice cream, sundaes, waffle cones, coffee and cakes. Top 10 ice cream flavors include Cherry Garcia,<br />
Chocolate Chip Cookie Dough, Chunky Monkey, Phish Food, Half Baked, New York Super Fudge Chunk and Peanut Butter<br />
Cup. Ice cream varieties include organic, original, sorbet, low-fat frozen yogurt and frozen yogurt. Specialty sundaes include<br />
the "Vermonster" sundae with 20 scoops of ice cream, hot fudge, banana, cookies, brownies and any toppings. Ice cream<br />
flavors are updated annually, with some flavors added and some subtracted. One of its newest flavors is Black & Tan—cream<br />
stout ice cream with a swirl of dark chocolate. Other recent flavor additions include Crème Brûlée, Banana Split, Mint<br />
Chocolate Chunk, Cinnabon Buns and AmeriCone Dream—vanilla ice cream with fudge-covered waffle pieces and a swirl of<br />
caramel. Cake flavors include Appley Ever After, Chocolate Therapy, Dublin Mudslide and Fossil Fuel. Most ice cream flavors<br />
are also available in pints. Beverages include milkshakes, such as its Chocolate Nirvana Shake and Chocolate Peanut Butter<br />
Shake. Smoothies are another popular option, prepared with real fruit, including its Strawberry Orange Banana, Strawberry<br />
Kiwi and the Orange Cream Smoothie. Additional beverages include frozen cappuccino drinks, freshly squeezed lemonade,<br />
hot chocolate, ciders, hot coffee and bottled juice and water. Ben & Jerry's also offers three milkshakes in glass bottles—<br />
Cherry Garcia, Chocolate Fudge Brownie and Chunky Monkey. <strong>Menu</strong> prices range between $1.49 for a kids’ single cone to<br />
$44.95 for a full sheet cake. No alcohol is served. Checks average $4.59.<br />
<strong>Menu</strong> Development |<br />
Ben & Jerry’s named a new ice cream after comedian Stephen Colbert called “Stephen Colbert’s Americone Dream.” The new<br />
item features vanilla ice cream with caramel and fudge-covered waffle cone pieces. (Seattlepi.nwsource.com 2/15/07)<br />
Ben & Jerry’s added Pumpkin Cheesecake to its flavors, featuring pumpkin cheesecake ice cream with a thick graham-cracker<br />
swirl. (Company Website)<br />
Personnel |<br />
Walt Freese, CEO<br />
Michael Graning, CFO<br />
Chip Litchfield, V.P. of Purchasing<br />
Deborah Heinze, V.P. of Operations<br />
Dave Stever, V.P. of Marketing<br />
Alrnold Carbone, V.P. Research & Development<br />
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published.<br />
50
Benihana<br />
Headquarters<br />
8685 NW 53rd Terrace Suite 201, Miami, Florida 33166 USA<br />
Tel: (305)593-0770 Fax: (305)592-6371<br />
www.benihana.com<br />
Ownership: Private<br />
Segment: Full Service Asian/Noodle<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 222,500 226,000 212,000<br />
Company-owned ($000) 185,000 181,000 167,000<br />
Franchised ($000) 37,500 45,000 45,000<br />
U.S. Number of Units 70 70 72<br />
Company-owned 59 56 57<br />
Franchised 11 14 15<br />
International Sales ($000) 65,000 60,000 66,000<br />
International Units 19 17 22<br />
Average Sales/Unit ($000) 3,400 3,250 3,100<br />
Concept Positioning |<br />
Benihana of Tokyo is a chain of full-service, Japanese-style steakhouses that feature communal dining around eight-seat<br />
cooking tables. "Showmen Chefs" slice, season, and cook vegetables, meats, and seafood at a steel grill on the patron’s table.<br />
The menu offers lunch speials, traditional teppanyaki meals and sushi. Benihana Inc. is the parent company of Benihana<br />
restaurants. Benihana Inc. operates approximately 85% of its units; the remaining restaurants are franchised. In addition, the<br />
company owns and operates three other smaller Asian concepts: Sushi Doraku, RA Sushi and Haru. Benihana is an<br />
international chain.<br />
Most Benihana units are freestanding buildings in urban locations. A typical unit occupies 8,000 sq. ft. Most restaurants have<br />
18 teppanyaki tables and total seating for as many as 178 patrons in the dining room, plus up to 120 additional patrons in the<br />
lounge. The company has also launched a Benihana Grill prototype (around 3,500–4,000 sq.ft.) for use in smaller markets.<br />
The décor features Oriental artifacts, prints and music. The chain has also added full sushi bars to many of its restaurants. In<br />
2006, Benihana announced a complete prototype makeover, with the implementation of a multi-million dollar, system-wide<br />
update with a contemporary Japanese design. In addition to the modernized exterior, interior updates will include an expanded<br />
waiting area, a lounge with an extensive sake menu and new themed dining areas, designated as "spirits" and "energy" rooms.<br />
That same year, Benihana Inc. announced the launch of a new Benihana Teppanyaki Restaurant in Minnesota, utilizing the<br />
new prototype design. Other units, particularly several in California, are being updated under this revamp plan.<br />
Rocky H. Aoki, former Olympic wrestler and son of a Japanese restaurateur, founded the Benihana chain in New York in 1964.<br />
The first franchise was granted in 1969, and the first overseas unit opened in 1977. In 1997, the company acquired nine-unit<br />
Rudy’s Restaurant Group and has converted all of those units to its Benihana brand. In 1999, Benihana Inc. acquired an 80%<br />
interest in Haru Holding Corp, which operates the Haru chain. Benihana acquired RA Sushi in 2002 for $11 million plus $1.2<br />
million in debt assumption. Benihana sold its Sushi Doraku unit in Miami to Kevin Aoki for $536,000. Benihana plans to<br />
continue expansion.<br />
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<strong>Menu</strong> Positioning |<br />
Benihana is open for lunch and dinner. The Japanese menu features appetizers, traditional items, specialties, desserts and<br />
beverages. Signature items are the grilled Japanese-style steaks, seafood and chicken available as single or combination<br />
entrées. Yakitori entrées include grilled skewered meat, vegetables and seafood dishes. Dinner items are served with<br />
Japanese onion soup, side salad, a shrimp appetizer, Hibachi vegetables, steamed rice, green tea and dessert. Sushi bars are<br />
also available at most units. A full range of alcoholic beverages is available. The chain lists a kids' menu as well. <strong>Menu</strong> prices<br />
range from $2.50–$7.25 for sides and appetizers and $7.25–$42.50 for entrées. Checks average $26.<br />
Expansion Plans |<br />
Benihana opened a new Benihana teppanyaki unit at The Fountains at Arbor Lakes in Maple Grove, MN, on May 14. In<br />
addition, the company will open new locations in Chicago; Torrance, CA; Chandler, AZ; Dulles, VA; and Plymouth Meeting,<br />
PA. All will use the new prototype design. Also, Benihana is in the process of remodeling locations in Fort Lauderdale and<br />
Miami Beach. They are slated to open during the first quarter of fiscal 2008. Its Burlingame, CA, unit will open in the second<br />
quarter of fiscal 2008. The company’s Turtle Creek, TX, location will be closing upon lease expiration. RA Sushi and Haru also<br />
have openings; Haru restaurants will open in Boston and New York City, and eight RA Sushi locations will open in Arizona,<br />
California, Illinois, Florida and Texas. (Company Release 6/7/07)<br />
Benihana announced updated development plans. They include a restaurant opening in Chandler, AZ, in September as well<br />
as lease agreements for locations in Plano, TX; East Rutherford, NJ; and Coral Springs, FL. In addition, between June and<br />
August the chain reopened its remodeled locations in Fort Lauderdale and Miami Beach, FL, and Burlingame, CA. Benihana<br />
closed its location in Cherry Hill, NJ, and a section of its Dallas unit for renovations. Locations in New York City and<br />
Sacramento, CA, have had minor remodels. Three additional locations in Chicago, Plymouth Meeting, PA, and Dulles, VA, are<br />
under development. (Company Release 8/21/07)<br />
<strong>Menu</strong> Development |<br />
Benihana has expanded its sake offerings to include nine premium chilled sakes from Japan. Selections include three in the<br />
daiginjyo category, with the highest grade costing $9.50-$12 a glass and $47.50 $62.50 a bottle; three in the junmai-ginjyo<br />
grade, with prices from $6-$8 a glass and $28-$38 a bottle; and three junmai sakes, priced at $6.50-$8.50 a glass and $35-<br />
$46 a bottle. The chain also menus a Sake Grazer for $12, which offers three 2-oz. glasses of premium sake for patrons to try.<br />
The Sake Grazer also features a card describing the sakes, including the classification, brewing process, sugar concentration<br />
and flavors. Other new beverage choices include a Mango Saketini, blending mango, pineapple, orange and lemon juices with<br />
sake ($6.50); Ocean Blue, with sake, blue curaçao, triple sec and pineapple juice ($6.50); and San Diego Beach, mixing sake<br />
with Apple Pucker and pineapple juice ($6.50). (Chain Leader 11/06 p37)<br />
Personnel |<br />
Jeannie Means, Director of Marketing<br />
Douglas Medina, Director of Purchasing<br />
Joel Scwartz, CEO<br />
Jose Ortega, CFO<br />
Taka Yoshimoto, V.P. of Research & Development<br />
News & Other |<br />
Benihana reported for the fiscal year ended April 1 net earnings declined 0.7% to $14.5 million from $14.6 million for 2006.<br />
Revenues increased 11% to $272.6 million from $245.6 million. Same-store sales grew 7.4% at Benihana, 13.3% at RA Sushi<br />
and 11.0% at Haru. (Company Release 6/18/07)<br />
Benihana Inc. reported for the first quarter ended July 22 net earnings declined 6.6% to $4.2 million from $4.5 million for the<br />
same period last year. Revenues rose 12.6% to $89.9 million. Same-store sales grew 6.2% at Benihana, 4.4% at RA Sushi<br />
and 10.3% at Haru. (NRN Daily NewsFax 8/31/07)<br />
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published.<br />
52
Bennigan's Grill & Tavern<br />
Headquarters<br />
6500 International Pkwy. Suite 1000, Plano, Texas 75093 USA<br />
Tel: (972)588-5000 Fax: (972)588-5969<br />
www.bennigans.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 528,000 535,000 552,100<br />
Company-owned ($000) 308,000 325,000 325,200<br />
Franchised ($000) 220,000 210,000 226,900<br />
U.S. Number of Units 264 267 281<br />
Company-owned 159 167 165<br />
Franchised 105 100 116<br />
International Sales ($000) 90,000 78,000 61,200<br />
International Units 52 45 29<br />
Average Sales/Unit ($000) 1,965 1,970 1,975<br />
Concept Positioning |<br />
Bennigan's Grill & Taverns are full-service, casual-dining restaurants that market primarily to customers between the ages of<br />
21 and 35. More than 75 items are featured on the menu. A variety of alcoholic beverages, including some 100 beers from<br />
some 17 countries of which 10–60 are available on tap, are featured. Bennigan’s is owned by parent company Metromedia<br />
Restaurant Group, which operates more than 300 Bennigan's units nationwide and internationally.<br />
Units are largely freestanding, located in relatively affluent suburban areas as well as nontraditional sites. The interior features<br />
a turn-of-the-century pub motif, with fans, stained glass, and Tiffany-style lamps. They average 6,400–7,100 sq.ft. and seating<br />
for 217–260 patrons.<br />
Bennigan's Grill and Tavern was developed by Steak and Ale in 1976. Steak and Ale (S&A Restaurant Corp.) was acquired by<br />
Pillsbury in 1976 and became an indirect wholly owned subsidiary of Grand Metropolitan, PLC, in January 1989. Grand Met<br />
sold the subsidiary in February 1989 to Benale Holdings Corp., a privately held company in which Metromedia Co., the parent<br />
of Bonanza and Ponderosa, controlled 15% of the stock. In January 1992, Metromedia acquired all Benale Holdings Corp.'s<br />
stock. In 2006, Bennigan's expansion plans called for an increase in its total number of units by 10%.<br />
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53
<strong>Menu</strong> Positioning |<br />
Bennigan's Grill & Tavern casual-dining menu features starters, soups, salads, Tavernburgers, steaks, ribs, chicken, seafood,<br />
sandwiches, desserts and beverages for lunch and dinner. The restaurant specializes in hamburgers including ½-lb versions<br />
and sandwiches ranging from the classic American Burger to Buffalo and Bayou Chicken, Turkey O’Toole, the Reuben and the<br />
County Cork Club sandwiches, with the traditional burger served with endless seasoned fries. Recently, the 10-oz. top sirloin<br />
steak and all burgers were upgraded to 100% Angus beef. Popular menu items include steaks like the Fire-Grilled 8-oz. Angus<br />
Sirloin and Guinness Glazed Angus Sirloin, Asiago chicken pasta and fajitas. Appetizers include Buffalo wings, crab cakes,<br />
broccoli bites, fajita chicken quesadillas, and Southwest Egg Rolls. Bennigan's "Mix & Match" menu allows guests to order two<br />
or three items on the menu for one price. Mix & Match menu items include entrees, such as Southwest Fajitas and “Oh, Baby”<br />
Back Ribs; appetizers, such as Buffalo Wings, Bacon & Cheese Potato Skins and Ultimate Nachos; and desserts, such as<br />
Brownie Bottom Pie and Crème Brulee Cheesecake. Another promotion, “Good & Evil,” asks customers to choose between<br />
the indulgent Monte Cristo or the healthier Kilkenny’s Country Chicken Salad, each priced at $4.99. Recently, Bennigan's Grill<br />
& Tavern began a systemwide revamp of its bar design, menu and promotions. A newly developed 17-page menu is now<br />
offered, featuring over 30 different cocktails and an increased selection of beers, wines and nonalcoholic beverages. The<br />
chain's partnership with Guinness has led to the creation of the new Bennigan's Guinness Grill menu, available nationwide,<br />
and featuring items like the Guinness Maximus (Guinness glazed popcorn shrimp, boneless chicken wings, and beer battered<br />
onion rings) and the Full Guinness (featuring an 8-ounce Angus Sirloin, grilled chicken breast, and lightly-fried shrimp) The<br />
menu also offers Guinness glazes on appetizers, such as Boneless Chicken Wings and Popcorn Shrimp. The Time Crunch<br />
Lunch program is offered seven days a week, and guarantees meal delivery in 15 minutes after order. Kids menu available.<br />
<strong>Menu</strong> prices range from $2.29–$17.49. Checks average $12.75.<br />
Expansion Plans |<br />
Metromedia Restaurant Group regrouped its 321 Bennigan’s units and 62 Steak and Ale outlets under the newly created<br />
Metromedia Casual Dining division. The existing Metromedia Family Steakhouse will oversee the Ponderosa and Bonanza<br />
restaurants. (NRN Daily NewsFax 11/21/06)<br />
Bennigan’s Grill & Tavern opened its first restaurant in Lenox, MA, on January 23. The unit is modeled after a New Englandstyle<br />
barn to match the design of the city. (Company Release 1/23/07)<br />
Bennigan’s SPORT has expanded into the Chicago area. The new Merrillville, IN, location is the second unit of Metromedia<br />
Restaurant Group’s new sports-bar concept. The restaurant, operated by franchisee Larry Briski, was converted from an<br />
existing Bennigan’s Grill & Tavern. Features of the new Bennigan’s SPORT include free WiFi, 28 plasma TVs and Chicagoarea<br />
sports-themed décor. In addition to serving Bennigan’s traditional menu, the restaurant will also serve brick-oven pizzas<br />
and Irish fare, such as the Irish Banger Dog and Irish Ale Queso. Future expansion plans for the concept have not been<br />
disclosed. (Businesswire.com 11/27/07)<br />
Promotion Plans |<br />
Bennigan’s Grill and Tavern will try to market its zero-trans-fat menu items as a differentiating advantage when the new menu<br />
is introduced in April. The company switched to a trans-fat-free oil in 2005. (NRN Daily NewsFax 1/15/07)<br />
Bennigan’s launched its $3.99 Burger Wednesday offer to promote its new Guinness Glazed Bacon Cheeseburger. The<br />
cheeseburger is brushed with Guinness Stout Glaze, fire-grilled and topped with bacon, Cheddar cheese, fried onions, lettuce,<br />
tomato and pickles. (Company Website 10/9/07)<br />
<strong>Menu</strong> Development |<br />
Bar food is being revamped into more sophisticated offerings at many restaurants. Recently, T.G.I. Friday’s added a variety of<br />
new offerings, including fried green beans served with a wasabi-cucumber dipping sauce ($4 with the purchase of a main<br />
course). Bennigan’s locations have launched Bar Bites, a tapas-style menu, with offerings such as fried calamari with bits of<br />
fried jalapeño and fried onion, Buffalo shrimp and Southwest Chicken Taquitos. Rathbun restaurant in Atlanta serves a jumbo<br />
lump crab cake and garlic custard tart with Creole mustard and tomato-cayenne jam ($7.95). At Arcadia in the Marriot Hotel in<br />
San Jose, CA, guests can dine on a lobster corn dog with mustard crème fraîche ($12) and black truffle popcorn with chives<br />
($9). At the Key Bar in Austin, TX, patrons can add mini popsicles as a garnish to drink for $1. The popsicles are prepared with<br />
lemon juice and orange juice and frozen in old-fashioned ice cube trays. (Nation’s Restaurant News 10/09/06 p25)<br />
Bennigan’s Grill & Tavern will only use 100% Angus Beef for its burgers and steaks, effective January 8. The company is also<br />
introducing its Chipotle Burger and its Burger Bites. The Chipotle Burger features avocado, Chipotle glazed onions, Cheddar<br />
cheese and bacon. The Burger Bites are four mini burgers with American cheese. (NRN Daily NewsFax 1/8/07)<br />
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published.<br />
54
Bennigan’s introduced “Oh, Baby” Back Ribs Combos. New selections include “Oh, Baby” Back Ribs & Cajun Shrimp, “Oh<br />
Baby” Back Ribs & Top Sirloin Steak, “Oh, Baby” Back Ribs & BBQ Chicken, “Oh, Baby” Back Ribs & Golden Chicken<br />
Tenders and Tavern Sampler. (Company Website)<br />
Bennigan’s rolled out the Fajita Nation menu as well as a new dessert. Both will be available through June. New items include:<br />
• Blazin’ Nachos—crispy corn and chipotle tortilla chips, garlic fajita, beef and bean dip, blazing queso, melted colby cheese,<br />
tomatoes and jalapeños topped with shredded lettuce, guacamole and sour cream • Chicken Fajita Pita—fajita grilled chicken,<br />
sautéed bell peppers and onions served in a warm pita and finished with jalapeño slices, shredded lettuce, pico de gallo and<br />
salsa cream sauce • Fajita Salad—marinated grilled chicken breast over mixed greens, bacon, roasted corn, pico de gallo and<br />
colby cheese mixed with avocado ranch dressing and topped with crispy tortilla strips • Mushroom, Bacon & Jack Fajitas—<br />
marinated grilled chicken served over sautéed onions, green peppers and topped with Monterey Jack cheese, crisp bacon and<br />
sautéed mushrooms • Mixed Grill Fajitas—grilled Cajun shrimp, marinated steak and chicken over sautéed onions and green<br />
peppers • Southwest Fajitas—flame-grilled chicken and/or marinated steak on top of sautéed onions and bell peppers •<br />
Bananas Foster Xango—warm banana cheesecake layered with rich caramel and wrapped in a flaky pastry, paired with<br />
vanilla ice cream and banana slices, and finished with caramel, Bananas Foster and whipped cream. (Company Website;<br />
Nation’s Restaurant News Online 4/20/07)<br />
Bennigan’s debuted Bayou Chicken, two crispy Cajun-spiced chicken breasts over a bed of rice pilaf, finished with<br />
mushrooms, broccoli and the chain’s spicy bayou cream sauce. (Company Website)<br />
Bennigan’s introduced Spinach Chicken Salad, consisting of baby spinach, sweet-pepper vinaigrette, bacon, chopped pecans,<br />
sundried tomatoes, crumbled bleu cheese, golden raisins, diced red onion, chopped egg and grilled chicken breast. (Company<br />
Website)<br />
Bennigan’s introduced a Good & Evil lunch menu for a limited time. The menu offers guests the opportunity to choose between<br />
an indulgent item, like the Monte Cristo, or a healthy item, such as the Kilkenny’s Country Chicken Salad, for $4.99 each. The<br />
Monte Cristo combines ham, turkey, Swiss and American cheeses on wheat bread, lightly battered, fried and topped with<br />
powdered sugar and red raspberry preserves. The Kilkenny’s Country Chicken Salad features garden greens, diced eggs,<br />
shredded colby cheese, tomatoes, bacon, crispy fried chicken and Smoky Honey Dijon dressing. (Company Release 5/10/07)<br />
Bennigan’s plans to introduce a new menu nationwide during the next few months. The revamped menu has been in test at 12<br />
Orlando-area locations since February. The Irish-themed chain removed its 25 least-popular items from the menu to focus on<br />
foods such as salads, fish and chips, grilled fare and burgers. In addition, smaller portions are being introduced, including a<br />
“burger bites” mini-hamburger plate. (OrlandoSentinel.com 7/6/07)<br />
Bennigan’s added Fried Mushrooms to its menu for a limited time. The item features tempura battered mushrooms, seasoned<br />
and paired with creamy ranch dressing for dipping. (Company Website)<br />
Bennigan’s rolled out Lemon Berry Delight for a limited time. The item features three layers of lemon cake filled with a mixture<br />
of raspberries, blackberries and strawberries, topped with lemon butter cream icing, powdered sugar and fresh strawberry<br />
purée. (Company Website)<br />
Bennigan’s introduced its Irish Fire Drill menu featuring grilled entrées, including Spinach Chicken Salad, Guinness Glazed<br />
Chicken and Shrimp, Grilled Seafood Platter and “Oh, Baby” Back Ribs. (QSRMagazine Online 7/10/07)<br />
Bennigan’s rolled out its revamped core menu nationwide. New appetizers are fried mushrooms, Blazin’ Nachos and beerbattered<br />
onion rings. Dessert additions are Bananas Foster Xango and chocolate-chip cake. New entrée selections include: •<br />
Oriental Chicken Salad—chicken tossed with water chestnuts, green beans, broccoli, red peppers and mushrooms in a tangy<br />
sweet ’n’ sour dressing • Spinach Chicken Salad—baby spinach tossed with sweet-pepper vinaigrette dressing and topped<br />
with bacon, chopped pecans, sun-dried tomatoes, bleu cheese, raisins, red onion, chopped egg and grilled chicken breast •<br />
Burger Bites—four mini burgers topped with American cheese and Bennigan’s signature sauce • Chipotle Burger—topped with<br />
guacamole, chipotle-glazed onions, bacon and Cheddar cheese • Fried Chicken Minis—mini fried chicken sandwiches served<br />
with lettuce and Smokey Honey Dijon dressing • Irish Pot Roast—with grilled onions, celery, carrots and red-skinned potatoes<br />
in a rich jus, served with toasted garlic bread • Bayou Chicken—two crispy Cajun chicken breasts served on rice pilaf, topped<br />
with mushrooms, broccoli and a spicy bayou cream sauce (NRN Daily NewsFax 10/3/07; Company Website)<br />
International Activities |<br />
International Bennigan’s has opened a resort-style restaurant in Thessaloniki, Greece. The 11,000-sq.ft. unit, located on the<br />
beach overlooking the Aegean Sea, features an outside pool with a swim-up bar, a walk-up bar, volleyball courts, children’s<br />
play area and seating for 400 patrons. The restaurant’s interior has a club-style bar, couches and several televisions.<br />
(Company Release 11/21/06)<br />
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55
Bennigan’s Grill & Tavern opened a second outlet in Panama on the causeway to the Panama Canal. The unit, owned by<br />
franchise group Extreme Planet, is Bennigan’s 52nd international location. Extreme Planet also operates the downtown<br />
Panama City location. (NRN Daily NewsFax 4/17/07)<br />
Bennigan’s Grill & Tavern opened a new restaurant in Amman, Jordan. The unit marks the chain’s first in Jordan. It is also<br />
Bennigan’s 53rd international location. (Insidetxbiz.com 5/9/07)<br />
Technology |<br />
Bennigan’s Grill and Tavern has selected TouchTunes Corp. as its exclusive provider of digital music. Bennigan’s will install<br />
TouchTunes pay-per-play digital jukeboxes in all of its 157 corporate-run restaurants, and is also making the jukeboxes<br />
available for its 86 franchised locations. The new system features a 19-inch touch-sensitive screen and a company-wide<br />
customizable music catalog that can be modified based on the market area, time of day and customer base.<br />
(Businesswire.com 11/13/07)<br />
Personnel |<br />
Tony Davidson, V.P. of Culinary Development<br />
Vincent Runco, CEO<br />
Philip Parsons, CFO<br />
Terry Hamblen, V.P. of Purchasing<br />
Sheri Messerli, V.P. of Operations<br />
Clay Dover, V.P. of Marketing<br />
Bennigan’s Grill & Tavern has announced the appointment of Sheri Messerli as vice president of operations. Messerli has<br />
been regional vice president of operations for Texas and the Midwest since 2005. (Businesswire.com 11/29/07)<br />
News & Other |<br />
Bennigan’s and Steak and Ale are being re-developed by Metromedia Restaurant Group into a new Metromedia Casual Dining<br />
division. (NRN Daily NewsFax 11/21/06)<br />
Bennigan’s Sport is a new sports-theme brand extension from Bennigan’s Grill & Bar. The concept will debut this spring in a<br />
Dallas suburb in a converted 6,500-sq.-ft. Bennigan’s. The Bennigan’s Sport menu will feature items such as Buffalo wings,<br />
Irish-ale queso, Thai chicken salad and a chipotle cheeseburger. The average per-person check will be about $12–$14.<br />
Metromedia Restaurant Group, Bennigan’s parent company, plans to continue to convert existing units to the new brand.<br />
(NRN Daily NewsFax 5/04/07; Nation’s Restaurant News Online 5/03/07)<br />
At a Bennigan’s in Fort Worth, TX, a woman allegedly bit into a cockroach while she was eating her appetizer of potato skins<br />
and buffalo wings. After she reported the incident, the Fort Worth Health Department inspected the restaurant the next day<br />
and found four roaches near the grilling area. An on-duty manager for the restaurant claimed the location was fumigated July<br />
2. Receipts from the service show the pest company found more roaches in the bar and kitchen areas. The health department<br />
issued five other violation notices to the restaurant location. (Wfaa.com 7/5/07)<br />
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56
Bertucci's<br />
Headquarters<br />
155 Otis St., Northborough, Massachusetts 01532 USA<br />
Tel: (508)351-2500 Fax: (508)393-8046<br />
www.bertuccis.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
Chain Brands<br />
Vinny T's of Boston<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 215,000 211,500 205,000<br />
Company-owned ($000) 215,000 211,500 205,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 92 92 90<br />
Company-owned 92 92 90<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,340 2,325 2,300<br />
Concept Positioning |<br />
Bertucci’s Brick Oven Ristorante is a full-service, casual-dining restaurant that specializes in Tuscan-style Italian dishes. The<br />
chain is publicly held by Bertucci’s Corp. and also operates Vinny T’s of Boston. The company operates 92 Bertucci’s<br />
company-owned locations across the U.S.<br />
Units are either freestanding or are located within existing buildings. Multiple unit sizes exist, with an average of 6,200 sq. ft.,<br />
seating approximately 170 patrons. A recent prototype utilizes 5,500 sq. ft. and seats 150 customers. Contemporary<br />
European-style open kitchens that use brick ovens as a focal point enhance the relaxing Tuscan atmosphere. Outdoor patios<br />
are available at select sites and further enhance the décor and casual dining atmosphere.<br />
Berucci’s was founded in 1981 in Somerville, MA, by Crugnale, an Italian immigrant. Expansion began in 1985. Its first public<br />
offering was made 1991. In 1998, parent Bertucci’s, Inc. was acquired by NE Restaurant Co., Inc. In early 2001, NE<br />
Restaurant sold its franchised Chili’s and On the Border holdings in order to focus on the Bertucci’s brand. Concurrently, it<br />
changed its corporate name to Bertucci’s Corporation. Bertucci’s Corp. purchased the Vinny T’s of Boston concept from Buca<br />
Inc. in September 2006 for $6.8 million. Currently, there are no major expansion plans for Vinny T’s. Plans for three new<br />
Bertucci’s units in Fall 2007 and 14 more over the following two years were announced in July 2007..<br />
<strong>Menu</strong> Positioning |<br />
Bertucci’s is open for lunch and dinner and features appetizers, salads, soups, sides, calzonis, paninis, seafood, beef, chicken,<br />
pasta, brick oven pizzas and desserts. Popular menu items include Lasagna Al Forno—pasta, tomatoes, rustic meat sauce<br />
with ricotta and shredded mozzarella and the Nolia Pizza with prosciutto, caramelized onions and a lemon pepper cream<br />
sauce. Signature menu items include oven-baked pastas, seafood, chicken and veal entrées and premium pizzas. Full liquor<br />
service is available, including an award-winning Italian focused wine list. All menu items are available for take-out or delivery.<br />
Kids’ menu is available. <strong>Menu</strong> prices range from $7.99–$15.50. Checks average $15.<br />
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57
<strong>Menu</strong> Development |<br />
Bertucci’s introduced a new menu. The Grill <strong>Menu</strong> features: • Grilled Steak and Chicken Combo—a 5-oz. sliced flatiron steak<br />
grilled medium and a grilled lemon-thyme chicken breast over diced Tuscan tomatoes, paired with fresh asparagus and red<br />
skin mashed potatoes • Filet Mignon with Chianti Sauce—8-oz. beef tenderloin grilled to order with flavored herbed butter and<br />
Chianti sauce, paired with red skin mashed potatoes and fresh asparagus • Grilled Salmon Fillet—grilled fillet topped with<br />
lemon butter and fresh herbs, paired with broccoli florets and red skin mashed potatoes • Balsamic Chicken—grilled chicken<br />
breasts topped with balsamic glaze, served with broccoli florets and red skin mashed potatoes • Lemon-Thyme Chicken—<br />
lemon-and-thyme marinated grilled chicken breasts with herbed butter and rosemary sprig over diced Tuscan tomatoes,<br />
served with broccoli florets and red skin mashed potatoes • Salad Firenze with Grilled Steak—slices of grilled flatiron steak<br />
served over field greens with grape tomatoes, red onions, crumbled Gorgonzola and pancetta dressing • Grilled Chicken<br />
Chop-Chop Salad—grilled chicken over chopped romaine and iceberg lettuce with cucumbers, zucchini, onions, green<br />
peppers, plum tomatoes and Romano cheese in a Gorgonzola cheese dressing, garnished with a cilantro pesto sauce •<br />
Venetian Spinach Salad with Grilled Chicken—grilled chicken breast over spinach, grape tomatoes, red onions, shredded<br />
Romano cheese and balsamic vinaigrette. (Company Website)<br />
Bertucci’s Italian Restaurant premiered Venetian Inspired Specials for a limited time. Entrée selections include Grilled Sea<br />
Bass, with herbed butter and sweet marinated red onions; Pizza Fiore, grilled chicken, pesto, pancetta, hot cherry peppers,<br />
diced plum tomatoes and mozzarella with a lemon-pepper cream sauce; and Grilled Shrimp Scampi over linguine, with fireroasted<br />
zucchini, grape tomatoes, parsley and hot pepper. In addition, Bertucci’s added Mascarpone Cheesecake for dessert,<br />
with a crisp biscotti crust, topped with caramel and raspberry sauce. (Company Website)<br />
Personnel |<br />
Stefano Cordova, Executive Chef<br />
Maria Feicht, S.V.P. of Marketing<br />
Stephen Clark, CEO<br />
David Lloyd, CFO<br />
Kevin Connelly, V.P. of Purchasing<br />
Francis Christman, V.P. of Operations<br />
Bertucci’s Corp. promoted Francis Christman to Chief Operating Officer and Maria Feicht to Senior Vice President of<br />
Marketing. Previously, Christman served as Regional Vice President of Operations for Applebee’s Neighborhood Bar and Grill.<br />
He also worked for General Mills Restaurants and Darden Restaurants. Feicht previously served as Director of Brand<br />
Excitement for Baskin-Robbins. (NRN Daily NewsFax 5/15/07)<br />
News & Other |<br />
Bertucci’s Italian Restaurant is redesigning from a pizza-parlor layout to a casual-dining atmosphere. The new look includes a<br />
bar with more than 40 seats, a pizza bar for customers to view the open kitchen, a grill for additional entrée selections and a<br />
private dining room with a fireplace. The walls will feature more vibrant colors and artwork to reflect a Tuscan landscape.<br />
Bertucci’s, known for its brick-oven pizzas, plans to open another 14 units over the next two years. Bertucci’s operates 92 units<br />
in New England and the mid-Atlantic states. (Boston.com 7/5/07)<br />
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published.<br />
58
Big Boy<br />
Headquarters<br />
1 Big Boy Drive, Warren, Michigan 48091 USA<br />
Tel: (586)759-6000 Fax: (586)757-1532<br />
www.bigboy.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 187,000 187,046 185,048<br />
Company-owned ($000) 32,000 31,988 26,750<br />
Franchised ($000) 155,000 155,058 158,298<br />
U.S. Number of Units 151 151 150<br />
Company-owned 27 27 21<br />
Franchised 124 124 129<br />
International Sales ($000) 198,000 196,000 195,000<br />
International Units 93 93 93<br />
Average Sales/Unit ($000) 1,280 1,277 1,275<br />
Concept Positioning |<br />
Big Boy is a family-oriented chain of full-service restaurants dating back to the 1930’s. Its menu specializes in the Original<br />
Double-Decker hamburger as well as onion rings, shakes and malts. Operated by Big Boy Restaurants International, Big Boy<br />
currently operates more than 450 locations throughout the U.S. and Japan; 20 locations are company-owned and the<br />
remaining are franchised.<br />
Units are mainly freestanding and average 5,600 sq. ft. with seating for approximately 160 customers. The façade is decorated<br />
with the signature Big Boy character with red and white checkered bricks at the entryway. Dolly’s Market, an area that includes<br />
a gift shop, bakery and home products retail section, is located inside units. Its newest prototype, which debuted in California,<br />
includes more seating, an ice cream counter, free wireless internet access, a more colorful and light décor, upgrades to the<br />
kitchen design and a separated carryout area. A recently redesigned prototype in Las Vegas features 200 seats including<br />
larger, more comfortable booths and new interior design elements such as murals. New stores will be constructed with<br />
upgraded design elements, while a remodeling package is being offered to existing franchisees.<br />
Bob Wian, Big Boy’s founder, entered the restaurant business in 1935 when he bought a 10-seat diner in southern California,<br />
The early units were curbside diners known for their double-decker hamburgers and their chubby, pompadour mascot. In<br />
1952, John, Fred and Louis Elias became its first franchisees. In 1972, Marriott Corp. purchased the business. In 1987, Elias<br />
Brothers acquired the chain from Marriott Corp. and became its exclusive worldwide franchiser. Elias Bros. Corp. filed Chapter<br />
11 Bankruptcy in 2000 and announced the same year that Robert Liggett, Jr., a Detroit-based investor, agreed to purchase the<br />
Big Boy holdings for $24 million. The deal was completed by the end of 2000. Long-term expansion plans call for 100 new<br />
units over the next 10 years.<br />
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<strong>Menu</strong> Positioning |<br />
Big Boy's menu features standard American favorites for breakfast, lunch and dinner—including appetizers, soups, salads,<br />
sandwiches and beverages. Its signature offerings are its hearty burgers, available in a number of varieties. Other menu items<br />
include steaks, chicken, ham, liver and onions, eggs, appetizers, hot and cold sandwiches, pancakes, French toast, Belgian<br />
waffles, pastries, soups, breakfast, fruit bars and a salad bar. Home Cookin' entrées (meatloaf, ham steak, beef tips, pork<br />
chops and country-fried steak) include sides of potatoes, rolls and coleslaw, to which soup, salad and fruit bars can be added<br />
for an additional $1.99. Health Smart selections have nutritional information included on the menu. Desserts include Banana<br />
Cream, French Silk, Coconut Cream, Strawberry and Old-Fashioned Apple pies, as well as cakes, sundaes and splits. A kids’<br />
menu is available. Beverages include soft drinks, hot and iced teas, coffee, juices, lemonade and milk. No alcohol is served.<br />
<strong>Menu</strong> prices range between 99¢ and $9.59. Checks average $6.<br />
<strong>Menu</strong> Development |<br />
Big Boy introduced omelet-style Stuffed Potato Pancakes. Flavor selections are Lumberjack pancakes, filled with lean diced<br />
ham, bacon, seasoned ground sausage and onion with melted American cheese; Santa Fe Garden pancakes, with sautéed<br />
red pepper, mushrooms, onion, pepper Jack cheese and salsa; and Taste of Philly pancakes, stuffed with strips of seasoned<br />
steak, sautéed onion and melted Swiss cheese. (Company Website)<br />
Big Boy premiered a Cool Mint Hot Fudge Cake, with mint ice cream layered between pieces of chocolate cake and topped<br />
with hot fudge and whipped cream. (Company Website)<br />
Big Boy added three items to its Stacked Cinnamon French Toast offering. The items include slices of cinnamon toast with<br />
vanilla-cream filling and toppings. The Bananas Foster French Toast item is topped with sliced bananas, caramel sauce and<br />
pecans; the Apple Delight is topped with apple; and the Strawberry Sensation is topped with strawberries. The three items are<br />
available until October 14. Big Boy also reintroduced the Super Slim Jim to its menu. The sandwich features Swiss cheese,<br />
tomato, lettuce, ham and sauce. (Nation’s Restaurant News 9/17/07)<br />
Big Boy added the Bob’s Beyond the Bun Chicken Sandwich to its list of signature items. The sandwich features a tender<br />
chicken breast coated in Big Boy’s special-recipe breading, fried golden brown and topped with sauce. (Company Website)<br />
Personnel |<br />
Dave Knitter, Franchise Development<br />
Anthony Michaels, CEO<br />
Paul Black, CFO<br />
Ralph Geromatte, V.P. of Purchasing<br />
Bill Hodden, V.P. of Marketing<br />
News & Other |<br />
Big Boy Restaurants International has formed Splendid Plates Carried Away Cuisine and Catering with Cucina. Its first retail<br />
outlet is slated to open on December 8 in Rochester Hills, MI. (NRN Daily NewsFax 12/7/06)<br />
Big Boy reported for the second quarter ended December 12 same-store sales increased 0.9%. (Company Release 1/16/07)<br />
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60
BJ's Restaurant & Brewery<br />
Headquarters<br />
7755 Center Avenue Suite 300, Huntington Beach, California 92647 USA<br />
Tel: (714)500-2400 Fax: (714)848-8287<br />
www.bjsbrewhouse.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 242,000 181,000 130,000<br />
Company-owned ($000) 239,000 178,000 128,000<br />
Franchised ($000) 3,000 3,000 2,000<br />
U.S. Number of Units 56 45 37<br />
Company-owned 55 44 36<br />
Franchised 1 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,400 4,185 4,000<br />
Concept Positioning |<br />
BJ’s Restaurants is a chain of full-service casual-dining restaurants specializing in Chicago-style pizza and handcrafted beer.<br />
BJ’s Restaurants, Inc. owns and operates under several BJ’s names, including BJ’s Restaurants & Brewery, BJ’s Pizza & Grill<br />
and BJ’s Restaurants & Brewhouse as well as operating several Pietro’s Pizza restaurants in the Oregon area. The chain<br />
largely operates throughout California, and also has units in Arizona, Colorado, Nevada, Oregon and Texas.<br />
BJ's Restaurant & Brewhouse is the most recognizable of the concepts, as the restaurant features an in-house microbrewery.<br />
In recent years the company has launched a new prototype for this concept, encompassing between 7,000 and 10,000 sq. ft.<br />
The site functions not only as a restaurant but also as a beer distributor for smaller Chicago Pizza & Brewery outlets. These<br />
units usually range between 2,000-3,000 sq. ft. and seat 50-70 guests.<br />
Originally known as Chicago Pizza & Brewery, Inc., the company was founded in 1991. In 1995, the company purchased the<br />
BJ's restaurants and concepts from its founders. The following year, Chicago Pizza made its first public offering. Chicago<br />
Pizza changed its name to BJ's Restaurants Inc. in 2004.<br />
<strong>Menu</strong> Positioning |<br />
BJ's lunch and dinner menu features appetizers, salads, soups, hamburgers, sandwiches, calzones, pasta, a selection of<br />
comfort foods, various entrées, stuffed potatoes and desserts. Its menu offers over 100 items. Its signature item is the deepdish,<br />
Chicago-style pizza. Other pizza favorites include Barbecued Chicken Pizza. Appetizers include avocado egg rolls and<br />
bruschetta. Popular entrées include Scampi Pasta, Southern Fried Chicken, Barbeque Chicken Pizza and the Turkey Cobb<br />
Sandwich. Full liquor service is available, including seven of its house brews. Catering services are available. <strong>Menu</strong> prices<br />
range between $5.95 and $18.95 for entrées, and $4.65 and $20.60 for pizzas. Checks average $11.<br />
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published.<br />
61
Expansion Plans |<br />
BJ’s Restaurants Inc. has opened new locations in Arlingtion, TX, and Aurora, CO, on October 24. The company plans to open<br />
another restaurant in Reno, NV, before Thanksgiving. (Company Release 10/25/06)<br />
BJ’s Restaurant & Brewery opened a new unit in Reno, NV, on November 7. The restaurant is located in the Summit Sierra<br />
Shopping Center. (Company Release 11/8/06)<br />
Darden Restaurants Inc. plans to open 40 restaurants during its current fiscal year but has not named the brands targeted for<br />
growth. Darden said that it is researching possibilities. Darden is also considering acquiring more brands. Potential candidates<br />
include BJ’s Restaurants, Granite City Food & Brewery and Kona Grill. (Nation’s Restaurant News Online 12/01/06)<br />
BJ’s Restaurants Inc. opened two locations, one in Pinellas Park, FL, and another in Columbus, OH, on March 13. With these<br />
two new locations, the company now operates from coast to coast. (Digital50.com 3/14/07)<br />
BJ’s Restaurant & Brewhouse launched an East Coast expansion plan expanding from Orlando. Eventually, the chain plans to<br />
extend into the Midwest. A new prototype that opened in Orlando includes a large dining area for private events, a regular<br />
dining area and a large bar decorated in wood, glass and stone complete with a mural. A second location will open in Tampa,<br />
FL, by mid-summer and another location in Orlando by mid-2008. (Orlando Business Journal 4/20/07)<br />
BJ’s Restaurants Inc. opened a new unit in Palmdale, CA, on May 2. The new restaurant is the company’s 59th and is the<br />
company’s fourth location to open in 2007. The unit is freestanding, located in the Antelope Valley Mall and is approximately<br />
8,500 sq. ft. (Company Release 5/3/07)<br />
BJ’s Restaurants Inc. opened a new location in Oklahoma City on July 17. The unit is located at the Quail Springs Mall and is<br />
the company’s 61st restaurant and its second in Oklahoma. (Company Release 7/18/07)<br />
BJ’s Restaurants Inc. opened its second Tampa, FL, unit on July 31. The new unit is located at the entrance of the Citrus Park<br />
Town Center Mall and is approximately 8,000 sq. ft. (Company Release 8/1/07)<br />
BJ’s Restaurants Inc., a 63-unit casual-dining chain, opened its 63rd restaurant in McAllen, TX, on August 13. The 8,500 sq. ft.<br />
restaurant is freestanding. (Company Release 8/14/07)<br />
BJ’s Restaurants Inc. opened its 65th restaurant October 8 in Temple, TX,. The new unit is located in the new Bird Creek<br />
Crossing shopping center. (Company Release 10/9/07)<br />
BJ’s Restaurants Inc. opened its 67th restaurant on October 22 in Glendale, CA. The new unit is located across the street from<br />
the Glendale Galleria in Glendale’s business district. (Company Release 10/23/07)<br />
BJ’s Restaurants Inc. opened a unit in Montebello, CA, on October 15. The unit marks the company’s 66th restaurant. It is<br />
located at the Montebello Town Center Mall. (Company Release 10/16/07)<br />
BJ’s Restaurants Inc. opened its 68th restaurant on November 5 in Austin, TX. The new BJ’s Restaurant and Brewhouse,<br />
located in Sunset Valley Village Center, will be the company’s 13th and final opening for 2007. (Company Release 11/06/07)<br />
Personnel |<br />
Lon Ledwish, Director of Operations<br />
John Allegretto, Director of Purchasing<br />
Raymond Martin, V.P. of Culinary Development<br />
Gerald Deitchle, CEO<br />
Gregory Levin, CFO<br />
Melanie Bruno-Carbone, V.P of Marketing<br />
News & Other |<br />
BJ’s Restaurants Inc. reported for the third quarter ended October 3 net earnings increased 3.7% to $2.4 million from $2.3<br />
million for the same period last year. Revenues grew 30% to $61.8 million from $47.5 million. Same-store sales rose 5.3%.<br />
(Company Release 10/26/06)<br />
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published.<br />
62
BJ’s Restaurants has inked a deal for the private placement of $61.5 million of common stock with several new and existing<br />
investors. BJ’s Restaurants owns and operates 55 restaurants under the BJ’s Restaurant and Brewery, BJ’s Restaurant and<br />
Brewhouse and BJ’s Pizza & Grill names. (Company Release 11/17/06)<br />
BJ’s Restaurants Inc. reported for the fourth quarter ended January 2 revenues increased 34% to $65.9 million from $49.2<br />
million for the same quarter last year. Same-store sales grew 5.5%. (Company Release 1/4/07)<br />
BJ’s Restaurants Inc. reported for the fourth quarter ended January 2 net earnings increased 22% to $2.8 million from $2.3<br />
million for the same period last year. Revenues grew 34% to $65.9 million from $49.2 million. Same-store sales rose 5.5%.<br />
(Company Release 2/15/07)<br />
BJ’s Restaurants, Inc. has had research coverage initiated by William Blair & Company with a company profile of aggressive<br />
growth and an Outperform rating. It is expected that the company would earn 50¢ per share in 2007, 63¢ per share in 2008<br />
and 80¢ per share in 2009. It is also expected that the company can expand to 200 units from its current 57. William Blair &<br />
Company is a Chicago-based investment firm offering asset management, investment banking, equity research, private and<br />
institutional brokerage, and private capital to institutional, individual and issuing clients. (Businesswire.com 4/13/07)<br />
BJ’s Restaurants Inc. reported for the first quarter ended April 3 net earnings decreased 30.4% to $1.6 million from $2.3 million<br />
for the same period last year. Revenues increased 33% to $71.2 million from $53.4 million. Same-store sales grew 6.9%.<br />
(Company Release 4/26/07)<br />
BJ’s Restaurants Inc. reported for the second quarter ended July 3 net earnings increased 40% to $3.3 million from $2.3<br />
million for the same period last year. Revenues rose 37% to $79.3 million from $57.8 million. Same-store sales grew 7.5%.<br />
(Company Release 7/26/07)<br />
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63
Black Angus Steakhouse<br />
Headquarters<br />
4410 El Camino Real Suite 201, Los Altos, California 94022 USA<br />
Tel: (650)949-6400 Fax: (650)949-6425<br />
www.blackangus.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 235,000 245,000 260,000<br />
Company-owned ($000) 235,000 245,000 260,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 83 88 95<br />
Company-owned 83 88 95<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,700 2,675 2,650<br />
Concept Positioning |<br />
Black Angus Steakhouse is a full-service steakhouse chain owned by American Restaurant Group, Inc. The chain offers a<br />
menu of steaks, prime rib, chicken, seafood and pasta dishes. The company owns and operates 83 locations in the U.S.<br />
Most units are freestanding, averaging 6,500-12,000 sq. ft. with seating for 220-350 guests. The company’s current expansion<br />
prototype is approximately 8,000 sq. ft. The Western design features red awnings and exposed wooden beams.<br />
Black Angus Steakhouse was founded in 1964 in a hotel in Seattle by Stuart Anderson. The restaurant, offering the first singleprice<br />
menu in the steakhouse segment, served a choice of six cuts of meat with potato, salad and bread for $2.95, In 1972,<br />
Anderson sold the chain to Saga Corp. In 1986, Marriott Corp. acquired Saga. American Restaurant Group acquired the chain<br />
in 1987 along with other Saga restaurant holdings. In 1997, ARG sold 24 Stuart Anderson units to ARG Properties I LLC, Los<br />
Angeles, for $48 million. In early 2000, ARG announced that it was selling all but its Stuart Anderson holdings to Spectrum<br />
Restaurant Group, Inc. for some $17 million. Having filed under Chapter 11 bankruptcy reorganization, American Restaurant<br />
Group re-emerged in 2005 with plans to rebrand nearly all of its 88 restaurants to Black Angus Steakhouse rather than the<br />
Stuart Anderson’s name. Currently, there are no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Black Angus Steakhouse is open for lunch and dinner and offers appetizers, soups, salads, sandwiches, burgers, chicken,<br />
seafood, steaks and prime rib. Signature lunch items include potato skins, shrimp cocktail, spinach salad, Turkey-Avocado &<br />
Bacon Sandwich, Steakhouse Burger, Grilled Lemon Chicken, Baked Fresh Salmon and Mushroom & Bleu Top Sirloin. Dinner<br />
items include Coconut Shrimp, Cobb Salad, Crab-Stuffed Chicken or Halibut, California Burger, Prime Rib in ½-lb., ¾-lb. or full<br />
pound cuts,and Lobster Tail. Kids’ menu includes mac & cheese, chicken strips, hamburger and cheese pizza. Full liquor<br />
service is available. <strong>Menu</strong> prices range from $6.99–$35.99. Checks average $16.<br />
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published.<br />
64
Promotion Plans |<br />
Stuart Anderson’s offered Glazed Honey-Baked Ham on Easter Sunday, April 8. The entrée was served with choice of garden<br />
salad or soup, fresh vegetable and choice of side. The dish was available for $14.99 for adults and $4.99 for children.<br />
(Company Website 4/4/07)<br />
Black Angus Steakhouse is offering a four-course dinner for two that includes filet mignon, prime rib, New York strip, top<br />
sirloin, grilled salmon, flame-grilled chicken and full-flavored ribeye steak. In addition to the entrées, customers receive a<br />
choice of appetizer, soup or garden salad and dessert. (Company Website 10/4/07)<br />
<strong>Menu</strong> Development |<br />
Stuart Anderson’s introduced its new Grilled Filet Mignon & Bleu Cheese Flatbread. The item features grilled flatbread with<br />
garlic butter, caramelized onions, chopped filet mignon and Jack, bleu and Cheddar cheeses. It is priced at 7.99. (Company<br />
Website 1/2/07)<br />
Black Angus Steakhouse is using all-natural Black Angus beef. The corn-finished beef does not contain any added hormones<br />
or antibiotics. (Nation’s Restaurant News p20 3/12/07)<br />
Black Angus Steakhouse added a new flavor to its Hand Shaken Cocktails. Raspberry Lemon Drop combines fresh lemon with<br />
Blue Ice vodka and a dash of Chambord liqueur. (Company Website)<br />
Black Angus Steakhouse debuted its Taste of Summer menu. Guests can order a Summer Grill with 7-oz. Mesquite Top<br />
Sirloin, BBQ Baby Back Ribs, Lemon Garlic Prawns and Fire-Roasted Corn on the Cob paired with a soup or garden salad,<br />
fresh vegetables and a choice of side. Also on the summer menu are Crab Cakes, lumps of crab coated in crunchy panko<br />
breadcrumbs and cooked until crisp, paired with housemade tartar sauce and a wedge of lemon, and Prime Trio, slow-roasted<br />
all-natural Black Angus half-pound prime rib served with petite lobster tail and flame-grilled lemon garlic prawns. (Company<br />
Website)<br />
Black Angus Steakhouse is offering a Four-Course Dinner for Two for $20 per person. For the first course, guests choose any<br />
appetizer. Course two is a fresh garden salad or soup. For the third course, patronschoose from 8-oz. Slow-Roasted Prime<br />
Rib, 10-oz. New York Center Cut, 6-oz. Filet Mignon Center Cut, 9-oz. Top Sirloin Center Cut, 8-oz. Grilled Fresh Salmon and<br />
10-oz. Flame-Grilled Chicken Breast. Dessert options include Shortbread Apple Cobbler, New York Cheesecake, Big<br />
Mountain Chocolate Fudge Cake, Chocolate Baked Alaska, Crème Brûlée and Sky-High Mud Pie. (Company Website)<br />
Personnel |<br />
Bruce MacDirmid, CEO<br />
Ronald (Ron) Maccarone, CFO<br />
Bruce MacDirmid, Marketing Manager<br />
Black Angus Steakhouse named Bruce MacDiarmid as president and CEO. MacDiarmid, who has been the chain’s chief<br />
operating officer for the last two years, succeeds Ralph Roberts, who is retiring after 20 years. (NRN.com 11/14/07)<br />
News & Other |<br />
Black Angus Steakhouse is the new name of Stuart Anderson’s. In the company’s Pearl City, HI, and Anchorage, AK,<br />
locations, where the restaurant was named “Stuart Anderson’s Cattle City,” that name has been changed to only “Cattle City.”<br />
(Company Release 4/16/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
65
Black-eyed Pea<br />
Headquarters<br />
7555 E. Hampden Suite 601, Denver, Colorado 80231 USA<br />
Tel: (303)671-7333 Fax: (303)671-8721<br />
www.theblackeyedpea.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 104,000 93,000 82,000<br />
Company-owned ($000) 104,000 93,000 82,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 50 51 40<br />
Company-owned 50 51 40<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,100 2,050 2,000<br />
Concept Positioning |<br />
Black-eyed Pea is a chain of full-service, casual-dining restaurants featuring a varied menu. Owned and operated by CNL,<br />
Black-eyed Pea emphasizes “Great American Food and Spirits” in a comfortable atmosphere with friendly service at<br />
reasonable prices. Customers receive unlimited helpings of freshly baked breads and large servings of iced tea and soft drinks<br />
with complimentary refills. The company operates approximately 75% of its units; the remaining locations are franchised.<br />
Black-eyed Pea currently operates only in Colorado and Texas.<br />
Units are generally freestanding with a turn-of-the-century, “general store” look that is designed to appeal to the chain’s broad<br />
customer base. Stores average 4,000–6,000 sq. ft. and have seating for 160–210 patrons in the dining room and an additional<br />
10 at the counters/bars. The focal point of each restaurant is a mural depicting the history of the area in which that restaurant<br />
is located. Interior walls and shelves are decorated with quilts, canned goods, toys, antique farm tools and cooking utensils. An<br />
interior remodeling program has also been initiated for all units to upgrade the dining room ambience by adding interior walls<br />
for privacy and noise reduction as well as improving the lighting, seating and overall décor package. Restaurants are open for<br />
lunch and dinner seven days a week, offering dine-in, take-out and catering services.<br />
Unigate PLC acquired Black-eyed Pea U.S.A., Inc. in 1986. In 1996, DenAmerica (now Phoenix Restaurant Group) completed<br />
its acquisition of the chain from Unigate for $65 million. In 2002, Dynamic Management was formed and acquired the<br />
restaurants from Phoenix Restaurant Group because they went bankrupt. In the late 1990’s, 15 Black-eyed Pea restaurants in<br />
Colorado were sold to Colorado Restaurant Management, Inc. In 2004, CNL Capital Management acquired BEP Colorado<br />
Restaurants LLC for an undisclosed sum. In 2005, a merger between CNL and U.S. Restaurant Properties led to the formation<br />
of new parent company Trustreet Properties, which in turn was acquired by GE Capital Solutions in 2007 for an undisclosed<br />
sum.<br />
<strong>Menu</strong> Positioning |<br />
Black-eyed Pea is open for lunch and dinner seven days a week typically from 11 a.m. to 10 p.m. Signature items include<br />
Texas-Sized Chicken Fried Steak, Roasted Turkey Brest Dinner, and introducing the Zesty Santa Fe Chicken and Mom’s<br />
Meatloaf Lasagna. Alcoholic beverages are served; each unit features a full bar area with additional seating. Kids’ menu is<br />
also available. <strong>Menu</strong> prices range from $1.49–$14.99. Checks average $16.40.<br />
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published.<br />
66
<strong>Menu</strong> Development |<br />
Black Eyed Pea introduced six new entrées for $7.99. The new items include Home Style Chicken Gumbo, a white-bean chili<br />
with chicken, kielbasa sausage, tomatoes and rice topped with tortilla strips and cheese; Zesty Santa Fe Chicken, marinated<br />
chicken breasts on a bed of seasoned rice topped with peppery chipotle cheese, pico de gallo and tortilla strips; Mom’s Meat<br />
Loaf Lasagna, meat loaf layered with lasagna noodles, marinara sauce and ricotta cheese topped with Parmesan cheese;<br />
Jalapeño Meat Loaf, meat loaf with jalapeños topped with pico de gallo and honey brown gravy; White Bean Chicken Chili<br />
Bake, white bean chicken chili topped with jalapeño cornbread and Cheddar and Monterey Jack cheeses; and Chicken Fried<br />
Pork Cutlet, center-cut pork loin hand-breaded and fried with homemade brown, jalapeño or cream gravy. The items are<br />
available for a limited time. (Company Website 4/11/07)<br />
Black-eyed Pea added Personalized Sweets to its dessert menu for $1.99 each. Selections of these single-portion desserts<br />
include: • White Chocolate Bread Pudding——with baked-in white chocolate chips, served warm with whiskey sauce, whipped<br />
cream, vanilla ice cream and cinnamon • Banana Chocolate Appeal—sliced bananas, sweet vanilla pudding, chocolate syrup<br />
and a dash of whipped cream, topped with a piece of chocolate • Chocolate Caramel Volcano Cake—chocolate cake with a<br />
cool caramel center, topped with vanilla ice cream, whipped cream and chocolate syrup (Company Website)<br />
Personnel |<br />
Alan Laughlin, CFO<br />
Alan Laughlin, V.P. of Purchasing<br />
Gary Suit, President<br />
Jordon Rohde, V.P. of Marketing<br />
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published.<br />
67
Blake's Lotaburger<br />
Headquarters<br />
3205 Richmond Drive NE, Albuquerque, New Mexico 87107 USA<br />
Tel: (505)884-2160 Fax: (505)884-2164<br />
www.lotaburger.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 34,500 32,000 31,125<br />
Company-owned ($000) 34,500 32,000 31,125<br />
Franchised ($000) - - -<br />
U.S. Number of Units 78 76 75<br />
Company-owned 78 76 75<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 445 425 415<br />
Concept Positioning |<br />
Blake's Lotaburger bills itself as "New Mexico's signature fast food burger chain," serving standard hamburger joint fare, such<br />
as hamburgers, french fries, hot dogs, chili and chicken sandwiches. With locations throughout New Mexico—and a loyal<br />
customer following in the state—Blake's has grown statewide despite competition from larger burger chains. Most Blake’s<br />
locations are concentrated in Albuquerque, NM. All of its units are company-owned.<br />
Earlier units operate as walk-up stands that only have outdoor seating with read and white striped umbrellas. These original<br />
stores average approximately 300 sq. ft. Newer stores—which make up the majority of the system—measure approximately<br />
1,200 sq. ft. and have an updated interior design that consists of red, white and blue color schemes. The renovated exterior<br />
design features soft earth tones accented by bold red window awnings. Recently constructed units are also freestanding with<br />
larger indoor space for seating as well as drive-thru windows for speedy, convenient service.<br />
Blake Chanslor opened the first Blake's Lotaburger as a small hamburger stand in 1952. Chanslor sold the company to Blake's<br />
Lotaburger LLC, the current parent, in 2003 for an undisclosed sum.<br />
<strong>Menu</strong> Positioning |<br />
Blake’s Lotaburger offers a menu of old-fashioned American hamburger fare for both lunch and dinner. Standouts of this menu<br />
include certified Angus beef burgers, chicken tenders, hot dogs, corn dogs, chili dogs, sandwiches and chili. Guest favorites<br />
include the signature Itsaburger with double meat, BBQ Sandwich and Chili dog. Favorite side items are french fries and onion<br />
rings. No kids' menu is available, but a Kiddyburger is featured on menu for $1.29. Breakfast options include the newly<br />
menued Breakfast Burrito—two eggs, hash browns, cheese and choice of bacon, ham or sausage, wrapped in a grilled flour<br />
tortilla with red or green chili sauce on the side. Dessert includes chocolate chip cookies. Beverages include soda, lemonade,<br />
tea, coffee and hot chocolate. In addition, shakes are available in Cherry, Chocolate and Black Raspberry flavors. No alcohol<br />
is available. <strong>Menu</strong> prices range from $1.09–$5.69. Checks average $4.05.<br />
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published.<br />
68
<strong>Menu</strong> Development |<br />
Blake’s Lotaburger introduced its new Breakfast Burrito. The new item features hash browns, two eggs, cheese and sausage<br />
or bacon wrapped in a grilled tortilla with either green or red chili sauce on the side. (Company Web site 11/28/06)<br />
Blake’s Lotaburger introduced its new Breakfast Burrito. The burrito features two fresh eggs, cheese, hash browns, bacon or<br />
sausage wrapped in a tortilla with a choice of green or red chili sauce. (Company Website 3/27/07)<br />
Personnel |<br />
Tom Moss, Controller<br />
Ron Rule, CEO<br />
Charles Agular, COO<br />
Brian Rule, V.P. of Marketing<br />
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published.<br />
69
Blimpie Subs & Salads<br />
Headquarters<br />
7730 East Greenway Road Suite 104, Scottsdale, Arizona 85260 USA<br />
Tel: (480)443-0200 Fax: (480)443-1972<br />
www.blimpie.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 317,967 327,400 292,600<br />
Company-owned ($000) 8,866 2,000 3,800<br />
Franchised ($000) 309,101 325,400 288,800<br />
U.S. Number of Units 1,578 1,637 1,540<br />
Company-owned 44 10 20<br />
Franchised 1,534 1,627 1,520<br />
International Sales ($000) 1,000 - 600<br />
International Units 5 - 6<br />
Average Sales/Unit ($000) 202 200 190<br />
Concept Positioning |<br />
Blimpie Subs & Salads is a chain of limited-service sandwich shops. The chain is owned by Kahala Corp. and operates 1,583<br />
units worldwide. Only 44 of the units are franchised.<br />
Most shops are in suburban and downtown locations with a large front window and occupy 1,200 sq. ft., with 30-40 seats.<br />
Recently added in-store ovens allow units to offer on-premise baked goods. New distribution formats include grab-and-go<br />
refrigeration cases, carts, kiosks and vending machines. The most recent décor package features red, white, yellow and blackcheckered<br />
designs, carpeting and lighted pictures of menu items. Uniforms and a sandwich-shaped logo are yellow and red on<br />
a field of green. In an effort to establish itself as a more upscale, contemporary deli, Blimpie is in the midst of a brand<br />
repositioning program, which includes upgrades to its décor and menu. New units will be larger (approximately 1,500 sq. ft.)<br />
and will feature hardwood floors and colored and textured tiles. A revamped menu includes a greater variety of breads and<br />
specialty sauces.<br />
Blimpie was established in Hoboken, NJ, in 1964 by Anthony Conza, Angelo Baldassare and Peter DeCarlo. Baldassare left a<br />
year later and eventually formed B & B Best Buy Foods, one of Blimpie's major suppliers. In 1976, the company split into<br />
Blimpie of New York, headed by DeCarlo, and Blimpie International, Inc., headed by Conza. The two enterprises function as<br />
separate but related companies, each operating in different parts of the country. A California franchisee headed an investment<br />
group that bought Blimpie for $26 million in 2002. In 2006, Blimpie International was acquired by Kahala Corp. The deal did<br />
not include the units owned by Metropolitan Blimpie, mostly along the East Coast.<br />
<strong>Menu</strong> Positioning |<br />
Blimpie's menu features hot, grilled and cold subs, signature sandwiches, wraps, salads, soups, breakfast items and desserts.<br />
It signature items are its 6-inch and 12-inch submarine sandwiches with freshly cut meats and cheese, shredded lettuce, onion<br />
and tomato sauce. The chain also lists a line of Italian-inspired panini sandwiches on grilled garlic-herb or onion poppy<br />
focaccia bread. Beverages include espresso, Italian sodas and smoothies. Blimpie also has a Carb Counter <strong>Menu</strong> consisting<br />
of sandwiches and salads. Nontraditional locations offer breakfast baked goods and egg-based breakfast sandwiches. <strong>Menu</strong><br />
prices range from $3.99–$7.09. Checks average $6.<br />
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published.<br />
70
Expansion Plans |<br />
Kahala Corp. is planning to double its brands in size over the next five years. The company owns Blimpie Subs & Salads as<br />
well as several other fast-food brand names, including TacoTime, Frullati Café, Wafflo, Johnnie’s, Great Steak, Ranch *1,<br />
Rollerz and Surf City Squeeze. The company has 140 Blimpie outlets under development and expects to open 400 stores in<br />
2007. Kahala is looking to the Southwest and Northeast to expand its other brands, including growing TacoTime beyond the<br />
West Coast. Kahala also plans to co brand select locations, such as a co-branded unit of TacoTime and Samurai Sam’s<br />
Teriyaki Grill in Mesa, AZ. The company is also exploring international options for its concepts in Australia, Germany and<br />
China. (AZCentral.com 12/11/06)<br />
<strong>Menu</strong> Development |<br />
Blimpie rolled out Blimpie Best, with deli-sliced slow-cured ham, cappacola, salami, prosciuttini, lettuce, tomatoes, onions,<br />
provolone, vinegar, oil and oregano, served on a freshly baked roll. (Company Website)<br />
Blimpie introduced Blimpie French Dip, with hot roast beef and melted Swiss cheese served on a sub roll with a side of au jus<br />
dip. (Company Website)<br />
Blimpie Subs is now offering the Turkey Italiano panini-grilled ciabatta sandwich, the Sicilian panini-grilled ciabatta sandwich<br />
and the Grilled Chicken Caesar panini-grilled ciabatta sandwich. The Turkey Italiano features cappacola and provolone with<br />
turkey, red peppers and brown mustard. The Sicilian includes ham, salami, prosciuttini, provolone and roasted red peppers<br />
with Italian sauce. The Grilled Chicken Caesar features grilled all-white chicken strips with four cheese blends, tomatoes and<br />
Caesar sauce. In addition, the chain teamed with Gardenburger to offer healthy sandwiches including the Santa Fe, with black<br />
beans, onions, red peppers and sweet corn. The GardenFresh, with mushrooms, onions, water chestnuts, carrots and red and<br />
green bell peppers, is also available. (Company Website 8/24/07)<br />
Blimpie introduced its Buffalo Chicken Ciabatta, with slices of seasoned Buffalo chicken topped with provolone, lettuce,<br />
tomatoes and peppercorn ranch dressing, served hot off a panini grill. (Company Website)<br />
Personnel |<br />
Doug Ducey, CEO<br />
Walt Schultz, CFO<br />
John Brunn, V.P. of Purchasing<br />
Chris Henry, V.P. of Operations<br />
Kate Unger, V.P. of Marketing<br />
John Brunn, V.P. Research & Development<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
71
Bob Evans<br />
Headquarters<br />
3776 S. High St., Columbus, Ohio 43207 USA<br />
Tel: (614)491-2225 Fax: (614)492-4949<br />
www.bobevans.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,020,000 1,001,000 1,030,000<br />
Company-owned ($000) 1,020,000 1,001,000 1,030,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 589 590 581<br />
Company-owned 589 590 581<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,730 1,759 1,850<br />
Concept Positioning |<br />
Bob Evans is a full-service family-style restaurant, which operates under the names Bob Evans Family Restaurants and Bob<br />
Evans Restaurant and General Stores. The chain serves breakfast and traditional American fare for lunch and dinner. Bob<br />
Evans Farms, Inc. owns and operates 579 Bob Evans Restaurants in 18 states. The company does not franchise.<br />
Most units are freestanding, averaging 4,200 sq. ft. and seating approximately 129-150. A smaller prototype for malls seats 98.<br />
Restaurants are located near motels, shopping malls and interstate highways. The company generates approximately 63% of<br />
its revenue during the breakfast and lunch dayparts. Typical interiors are decorated in solid woods and soft colors. Exteriors<br />
carry a farm image. The concept's Carry Home Kitchen is an enhanced carryout area featured in all new or remodeled Bob<br />
Evans units. In 2005, a new prototype for Bob Evans Restaurants was launched in Cincinnati, with a dining room divided into<br />
smaller areas than those of traditional interiors. Bob Evans is testing this new interior and may incorporate it into future units.<br />
In 1948, Bob Evans started making his own sausage to supply a truck-stop restaurant in Gallipolis, OH. The company<br />
established the name Bob Evans Farm Sales in 1953. In 1963, the company went public. By 1971, Bob Evans had five<br />
restaurants in operation, the first being a fast-food restaurant that was revamped into a full-service concept. In June 2004, Bob<br />
Evans acquired SWH Corp., the parent company of the 81-unit chain Mimi's Café. Mimi’s Café operates 115 company-owned<br />
restaurants in 20 states with a majority of them in California. In January 2006, Bob Evans sold off its eight remaining Owens<br />
Restaurants in Texas for an undisclosed sum, via a joint venture between The Woodmont Company of Texas and Commercial<br />
Net Lease Realty of Florida. Bob Evans does not borrow money for expansion. Capital for continued development has been<br />
generated by the manufacturing segment of the firm as well as restaurant division profits. The company is traded on the<br />
NASDAQ under the symbol BOBE.<br />
<strong>Menu</strong> Positioning |<br />
Bob Evans' menu features traditional American-style meals for breakfast, lunch and dinner. Breakfast is served all day and<br />
includes eggs, biscuits, French toast, Belgian waffles, pancakes and fried cornmeal mush. Lunch and dinner includes farmfresh<br />
salads, sandwiches and soups. Signature menu items are the Harvest Feast Breakfast, Lemon Pepper Crusted Cod,<br />
Mini Cheeseburgers and Cherry Supreme Pie. The menu features a selection of low-carb entrées. Kids’ menus are available.<br />
<strong>Menu</strong> prices range from $2.39-$11.29 and checks average $7.34.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
72
Promotion Plans |<br />
Bob Evans Restaurants has listed an auction for a vacation and breakfast with the restaurant’s founder, Bob Evans, on<br />
Ebay.com. The winner will choose between two three-day trips: a trip to Gallipolis/Rio Grande, Ohio or any other Bob Evans<br />
restaurant location. (Company Release 1/10/07)<br />
<strong>Menu</strong> Development |<br />
Bob Evans debuted Stacked and Stuffed Hotcakes, two stuffed hotcakes with a layer of vanilla cream cheese, finished with a<br />
choice of toppings, whipped cream and powdered sugar. Varieties include Roasted Caramel Apple Cream, filled with caramel<br />
and apples, covered with roasted apples and a warm caramel sauce; Chocolate Banana Cream, stuffed with banana slices<br />
and chocolate chips and topped with chocolate fudge sauce; and Caramel Banana Pecan Cream, with honey-roasted pecans<br />
and banana slices and a warm caramel sauce. (Company Website)<br />
Bob Evans added a new item to its Stacked and Stuffed Hotcakes lineup: Strawberry Banana Cream, filled with slices of fresh<br />
banana and topped with fresh strawberry topping and more banana slices, whipped cream and powdered sugar. (Company<br />
Website)<br />
Bob Evans added Fresh Strawberry Shortcake and brought back its Strawberry Supreme Pie. The Fresh Strawberry<br />
Shortcake features a baked buttermilk biscuit split in half, covered with vanilla ice cream and fresh strawberries in strawberry<br />
sauce, and finished with whipped topping and powdered sugar. The Strawberry Supreme Pie includes rich cream cheese<br />
filling topped with a layer of fresh strawberries and whipped topping. (Company Website)<br />
Bob Evans added new items to its Family Favorites and Slow-Roasted Dinners lineups. Family Favorites are Maple-Dijon<br />
Salmon Fillet Bacon with 8-oz. Atlantic salmon fillet covered in maple-Dijon glaze and hickory-smoked bacon, paired with a<br />
baked potato and garden vegetables. Guests can also order the item without bacon and topped with garlic herb butter or<br />
Wildfire BBQ sauce. Potato-Crusted Flounder includes a fillet grilled in a potato crust, paired with a baked potato and grilled<br />
garden vegetables. The new Slow-Roasted options include Garden Vegetable Alfredo, broccoli, carrots and squash with<br />
penne pasta in an Alfredo sauce, topped with Parmesan cheese with slow-roasted chicken, vegetable, grilled shrimp or<br />
Atlantic salmon fillet; and Stir-Frys, featuring broccoli, red and green peppers, carrots, scallions and purple and green cabbage<br />
over rice pilaf, finished with citrus-ginger sauce, scallions and slivered almonds and served with a baked roll. Guests can also<br />
choose to add slow-roasted chicken, vegetable, steak tips, grilled shrimp or Atlantic salmon fillet. (Company Website)<br />
Bob Evans added a Bob-B-Q menu for the summer. Items on the menu are Bob-B-Q Baby Back Ribs, slow-roasted ribs<br />
covered in Wildfire sauce with two Sweet Corn Griddle Cakes, coleslaw and baked rolls; Bob-B-Q Chicken Monterey, two<br />
grilled chicken breasts covered with Monterey Jack cheese, Wildfire Sauce, bacon and a blend of red and green bell peppers,<br />
diced tomatoes and corn, paired with rice pilaf, a garden salad and baked rolls; Bob-B-Q Pulled Pork Knife & Fork Sandwich,<br />
slowroasted Wildfire Bob-B-Q pulled pork piled over mashed potatoes on grilled Texas toast, topped with Cheddar cheese and<br />
Wildfire Sauce and crispy fried onions; Bob-BQ Pulled Pork Sandwich Platter; and Bob-B-Q Steak Burger. (Company Website)<br />
Bob Evans introduced Country Stir-Fry meals in Grilled Shrimp, Slow-Roasted Chicken, Vegetable, Steak Tips and Atlantic<br />
Salmon Fillet versions. All of the stir-fry dishes include broccoli, red and green peppers, carrots, purple and green cabbage<br />
and scallions layered over rice pilaf and topped with a sweet citrus-ginger sauce and slivered almonds. (Company Website)<br />
Personnel |<br />
Mary Cusick, S.V.P. of Marketing<br />
Chad Congrove, V.P. of <strong>Menu</strong> Development<br />
Steven A. Davis, CEO<br />
Donald J. Radkoski, CFO<br />
L. Merl Beery, V.P. of Purchasing<br />
Randall L. Hicks, E.V.P. of Operations<br />
News & Other |<br />
Bob Evans Restaurants reported October same-store sales increased 3%. (Company Release 11/7/06)<br />
Bob Evans reported December same-store sales rose 3.3%. (Company Release 1/9/07)<br />
Bob Evans reported January same-store sales increased 2.4%. (Company Release 2/6/07)<br />
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73
Bob Evans Farms Inc. reported February same-store sales declined 0.7% at Bob Evans and increased 2.6% at Mimi’s Café.<br />
(NRN Daily NewsFax 3/12/07)<br />
Bob Evans Farms Inc. reported March same-store sales increased 1.2% at Bob Evans and declined 0.2% at Mimi’s Café.<br />
(Company Release 4/3/07)<br />
Bob Evans Farms Inc. reported April same-store sales increased 2.1% at Bob Evans restaurants and 1.3% at Mimi’s Café.<br />
Growth in same-store sales was attributed to increased average menu prices. <strong>Menu</strong> prices rose 1.9% at Bob Evans and 5% at<br />
Mimi’s Café. (Company Release 5/8/07)<br />
Bob Evans Farms Inc. has closed 11 underperforming units in seven states and plans to sell the properties. The outlets were<br />
located in Florida, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina and Virginia. There are currently 580 Bob<br />
Evans restaurants in 18 states. (NRN Daily NewsFax 4/20/07; Company Release 4/19/07)<br />
Bob Evans is offering schools, daycare centers and other organizations free handwashing reminders throughout September,<br />
National Food Safety Education Month. The vinyl signs that adhere to restroom mirrors remind individuals to wash their hands<br />
with warm water and soap for 20 seconds. The signs are available at Bob Evans locations. (Company Release 8/16/07)<br />
Bob Evans Farms Inc. reported August same-store sales at Bob Evans increased 4.3% over year-before figures while sales at<br />
Mimi’s Café declined 1.9%. Average menu prices at Bob Evans and Mimi’s Café increased approximately 2.6% and 3.9%,<br />
respectively. (Company Release 9/4/07)<br />
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74
Bojangles' Famous Chicken 'N Biscuits<br />
Headquarters<br />
9432 Southern Pine Blvd., Charlotte, North Carolina 28273 USA<br />
Tel: (704)527-2675 Fax: (704)523-6676<br />
www.bojangles.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 506,592 458,679 415,000<br />
Company-owned ($000) 179,430 154,000 155,000<br />
Franchised ($000) 327,162 304,679 260,000<br />
U.S. Number of Units 373 352 333<br />
Company-owned 142 135 123<br />
Franchised 231 217 210<br />
International Sales ($000) 1,269 1,105 4,000<br />
International Units 6 4 4<br />
Average Sales/Unit ($000) 1,510 1,438 1,275<br />
Concept Positioning |<br />
Bojangles' Famous Chicken 'N Biscuits is a limited-service chain specializing in fried chicken and biscuits prepared from<br />
scratch for breakfast, lunch and dinner. Breakfast represents about 40% of total transactions. Bojangles' is concentrated in the<br />
East Coast with more than 350 stores in 15 states. The chain also operates international locations in Honduras and Mexico.<br />
Most units are freestanding and average 3,500 sq. ft. with seating for 96. Drive-thru and takeout services are available. Units<br />
have a bright décor featuring the chain’s signature red and yellow colors. Bojangles' also has a nontraditional unit program for<br />
convenience stores, and is developing co-branded locations throughout the U.S. Bojangles' introduced a new concept design<br />
in North Carolina in 2005. The new 4,200-sq. ft. restaurant features a softer décor package highlighted by dark woods, lightcolored<br />
tiles, stainless-steel accents and textured wallpaper.<br />
Jack Fulk and Richard Thomas opened the first Bojangles' in 1977. The company began franchising a year later. Bojangles'<br />
was privately held until its acquisition by Horn & Hardart in January 1982. In 1990, Horn & Hardart restaurant operations were<br />
sold to Sienna Holdings and InterWest Partners. In 1998, a group of investors acquired the chain. Bojangles' has recently<br />
targeted Mexican and Central American regions for future international expansion. In addition, the company has announced<br />
plans to launch up to 50 new stores in 2007, with particular focus in the Southeastern U.S. region.<br />
<strong>Menu</strong> Positioning |<br />
Bojangles' menu features breakfast platters, biscuit sandwiches, chicken, snacks and beverages. Signature items include the<br />
Cajun and Southern-style chicken and buttermilk biscuits. Other menu items include chicken and steak sandwiches, seasoned<br />
fries, rice, pinto beans, macaroni & cheese, corn on the cob and coleslaw. The beverage menu includes freshly steeped iced<br />
tea, Pepsi products, coffee and milk. <strong>Menu</strong> prices range from 99¢–$32.99 and checks average $4.48.<br />
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75
Expansion Plans |<br />
Bojangles restaurants plan to reenter the Florida market within a few years. The company plans to open 450 locations in<br />
Escambia, Miami-Dade, Okaloosa and other counties, with the first new restaurant to be opened in Pensacola in 2008.<br />
(Miami.com 1/1/07)<br />
Bojangles Famous Chicken ’n Biscuits plans to return to Florida by opening 200 units between Jacksonville and Orlando over<br />
the next five years. Bojangles closed all of its Florida restaurants 17 years ago. (Bizjournals.com 6/29/07)<br />
Bojangles Famous Chicken and Biscuits and El Pollo Loco Inc. will expand their presence in the Atlanta market to more than<br />
130 units. Bojangles will open 15 more of its units in the metro Atlanta area during the next three years. The new locations are<br />
slated for Atlanta, Buford, Conyers, Newnana, Rockmart and Statesboro and are part of a greater expansion plan that will<br />
bring more than 80 new units to Georgia’s major cities over the next five years. Locations for El Pollo Loco are currently under<br />
construction in Gainesville, Marietta, Lithia Springs, Roswell, Chamblee and Lithonia. In addition, El Pollo Loco has other<br />
franchise commitments in Arizona, California, Florida, Illinois, Missouri, North Carolina, New York, New Jersey, New England,<br />
Oregon, South Carolina, Utah, Virginia and Washington. El Pollo Loco’s franchise commitments are part of a plan to open 50<br />
units in metro Atlanta within the next six years. (Qsrmagazine.com 9/7/07)<br />
<strong>Menu</strong> Development |<br />
Bojangles’ Famous Chicken ’N Biscuits rolled out a new sandwich line featuring chicken breast filets served on kaiser buns<br />
with lettuce and tomato. Selections include a Cajun Filet Sandwich; Rajun Cajun Sandwich, with pepper Jack cheese and a<br />
special cajun sauce; and Grilled Filet Sandwich. (Company Website)<br />
Franchise Activity |<br />
Bojangles’ expects to open 53 franchises in Georgia, 27 in Tennessee and 29 in Florida over the next year. The company is<br />
also looking to open units in Newark, NJ, and Scranton, PA, as well as moving into Texas, Oklahoma, Louisiana and<br />
Mississippi. Bojangles’ also is working towards franchise agreements in the Middle East. The chain currently has 381 units<br />
worldwide, with two-thirds of those being franchised and six in international locations. (Charlotte Business Journal Online<br />
6/29/07)<br />
Technology |<br />
Bojangles’ Restaurants Inc. hired Accel Networks LLC, a wireless data specialist, to speed up credit card authorization. Accel<br />
uses a dial-based software platform for broadband processing. (Nation’s Restaurant News 5/21/07 p102)<br />
Personnel |<br />
Randy Kibler, CEO<br />
John Jordan, CFO<br />
Keith Rosenthal, V.P. of Purchasing<br />
Tom Lewison, V.P. of Operations<br />
Randy Pointdexper, V.P. of Marketing<br />
Mike Bearss, Senior V.P. <strong>Menu</strong> Development<br />
Bojangles’ Restaurants Inc. hired Randy Kibler as chief executive, replacing Joe Drury. Since 2002, Kibler has worked with<br />
developers of Firehouse Restaurant Group Inc. Before that, Kibler served as senior vice president and chief operating officer<br />
of Flagstar’s Hardee’s division. The appointment follows the September acquisition of Bojangles' by an investor group led by<br />
Falfurrias Capital Partners. (Nation’s Restaurant News 10/9/07)<br />
News & Other |<br />
Bojangles’ recently rebuilt two of its restaurants to accommodate more customers. The units in Lincolnton and Statesville, NC,<br />
doubled in size to 5,000 sq. ft. Both locations reopened earlier this year. Since the stores have been rebuilt, sales have risen<br />
52%. (QSR Magazine 4/12/07 p16)<br />
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76
Bojangles’ has been sold to private equity firm Falfurrias Capital Partners. The investment group includes Hugh McColl Jr.,<br />
founder of Falfurrias and former CEO of Bank of America, and Jerry Richardson, a Bojangles’ franchisee who is also founder<br />
and president of the Carolina Panthers. Terms of the deal were not disclosed. The quick-service chicken chain operates and<br />
franchises 386 restaurants in 11 states, Honduras and Mexico. (Triangle Business Journal 9/13/07; Nation’s Restaurant News<br />
Online 9/13/07)<br />
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77
Bonefish Grill<br />
Headquarters<br />
2202 N. Westshore Blvd 5th FL, Tampa, Florida 33607 USA<br />
Tel: (813)282-1225 Fax: (813)282-1209<br />
www.bonefishgrill.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 327,000 235,000 141,000<br />
Company-owned ($000) 311,000 224,000 130,000<br />
Franchised ($000) 16,000 11,000 11,000<br />
U.S. Number of Units 119 90 63<br />
Company-owned 112 86 59<br />
Franchised 7 4 4<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,058 3,216 3,250<br />
Concept Positioning |<br />
Bonefish Grill is a full-service seafood concept that capitalizes on the niche between high-end and low-end seafood houses.<br />
The polished-casual seafood restaurant offers quality seafood served in a comfortable, upscale and lively atmosphere. OSI<br />
Restaurant Partners Inc. owns and operates over 40 Bonefish Grill locations across the U.S.<br />
Units are freestanding and located in densely-populated suburban neighborhoods. The average unit is 5,500 sq. ft. with<br />
seating for approximately 225 guests. Restaurants offer a bar area with three large community tables. The sleek interior<br />
design features golden hardwood, hand-blown glass lamps and an array of three-dimensional art pieces, such as large-scale<br />
metal sculptures of mangroves and fishing scenes. An exhibition kitchen adds to the spacious feel of the interior.<br />
Tim Curci and Chris Parker opened Bonefish Grill in 2000 in St. Petersburg, FL. OSI Restaurants Inc. is the parent company of<br />
Bonefish Grill as well as Outback Steakhouse, Carrabba's Italian Grill, Fleming's Prime Steakhouse, Roy's, Lee Roy Selmon's<br />
and Cheeseburger In Paradise. Bonefish Grill is currently expanding into the Midwest region.<br />
<strong>Menu</strong> Positioning |<br />
Bonefish Grill’s full-service menu features appetizers, soups and salads, grilled specialties, sautés, sides, desserts and<br />
beverages. The menu begins with daily specials and appetizers such as Mussels Josephine, Cajun Chicken Egg Rolls and<br />
Bang Bang Shrimp. Signature items include a wide selection of market-fresh seafood creatively prepared with culinary<br />
ingredients such as hearts of palm, pine nuts, artichokes, goat cheese and sundried tomatoes. Eight types of fish are offered<br />
including snapper, rainbow trout, Atlantic salmon, mahi-mahi, Chilean sea bass, Ahi tuna and shrimp, scallops and lobster. All<br />
fish items are cooked over an oak-burning grill and seasoned with a choice of lemon butter, lime tomato garlic, warm mango<br />
salsa or Asian-style sauce. Other menu options include steaks, pork tenderloin, pasta and chicken dishes. Entrées are served<br />
with a choice of rice, pasta or potato. Alcoholic beverages are available. <strong>Menu</strong> prices range from $5.20–$29.00 and checks<br />
average $23.48.<br />
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78
Personnel |<br />
J. Timothy Gannon, S.V.P. of Operations<br />
Irean Wenzel, S.V.P. of Purchasing<br />
William Allen, CEO<br />
Dirk Montgomery, CFO<br />
Jody Bilney, CMO<br />
News & Other |<br />
Lee Roy Selmon’s, a five-unit casual-dining dinnerhouse concept, is expanding in Florida with a planned opening in East<br />
Manatee, FL, in January 2007. Named for former Tampa Bay Buccaneers football player Lee Roy Selmon, the restaurant<br />
features home-style American fare such as barbecue, fried green tomatoes and other Southern-influenced favorites. Floridabased<br />
Lee Roy Selmon’s is part of the OSI Restaurant Partners Inc. group of restaurant brands that includes Outback<br />
Steakhouse, Roy’s and Bonefish Grill. (Bradenton Herald.com, 10/25/06)<br />
Bonefish Grill reported for the fourth quarter ended December 31 same-store sales decreased 0.2%. (Company Release<br />
2/1/07)<br />
OSI Restaurant Partners Inc. reported for the quarter ended March 31 same-store sales system-wide declined 0.5% at<br />
Outback Steakhouse, 1.3% at Carrabba’s Italian Grills, 0.7% at Bonefish Grills, 2.1% at Roy’s and rose 3.3% at Fleming’s<br />
Prime Steakhouse and Wine Bars. For the five weeks ended March 31, same-store sales system-wide fell 0.1% at Outback<br />
Steakhouse, 0.7% at Carrabba’s Italian Grills, 1% at Bonefish Grills, and 1.6% at Roy’s, and grew 0.7% at Fleming’s Prime<br />
Steakhouse and Wine Bars. (Company Release 4/5/07)<br />
OSI Restaurant Partners Inc. reported April same-store sales grew 1% at Outback Steakhouse, 1.1% at Carrabba’s Italian<br />
Grill, 1.9% at Fleming’s Prime Steakhouse & Wine Bar, 0.7% at Bonefish Grill and 0.8% at Roy’s. (NRN Daily NewsFax<br />
5/4/07)<br />
OSI Restaurant Partners Inc. reported May same-store sales declined 1.4% at Outback Steakhouse, 2.1% at Carrabba’s<br />
Italian Grill, 2.0% at Bonefish Grill and 0.9% at Roy’s. Fleming’s Prime Steakhouse and Wine Bars’ same-store sales rose<br />
1.2%. (Associated Press 5/30/07)<br />
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79
Boston Market<br />
Headquarters<br />
14103 Denver West Pkwy., Lakewood, Colorado 80401 USA<br />
Tel: (303)278-9500 Fax: (303)216-5335<br />
www.bostonmarket.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 685,000 695,000 660,000<br />
Company-owned ($000) 685,000 695,000 660,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 619 631 630<br />
Company-owned 619 631 606<br />
Franchised - - 24<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,100 1,100 1,045<br />
Concept Positioning |<br />
Boston Market is a limited-service chain offering a home-meal dining experience. Quick, convenient meals are available for<br />
lunch and dinner, including chef-inspired entrées, fresh vegetables, sandwiches, salads, soups, side dishes and desserts.<br />
Boston Market restaurants combine the comfort of traditional home cooking with convenience and contemporary flair.<br />
Everything is cooked from scratch, including its proprietary marinated rotisserie chicken, with no artificial additives or<br />
flavorings. Boston Market Corporation is a owned by Sun Capital Partners.<br />
Units are freestanding and average 2,100 sq. ft. Most are located near busy shopping locations. Dining rooms include booth<br />
seating and padded chairs with matching tables, wedged partition walls with decorative plants, warm colors and soft lighting.<br />
Some newer models reflect the chain’s upgraded interior, featuring ceramic tile, light woods and stainless-steel fixtures.<br />
Seating in this new prototype is limited to 17 stools that line a counter area.<br />
Arthur Cores and Kip Kolow opened the first Boston Chicken in 1985 in Newtonville, MA. In 1989, they sold their first franchise<br />
to George Naddaff, a 30-year veteran KFC franchisor. The company’s initial public offering was filed in 1993. In 1995, the<br />
chain announced a name change to Boston Market to reflect a wider menu, but reverted back to Boston Chicken in 1998. In<br />
2000, McDonald’s Corp. completed its acquisition of most of Boston Chicken’s holdings in a court-approved reorganization<br />
plan. The deal included 751 restaurants and franchise rights for 108 additional units. The name, once again, became Boston<br />
Market. In 2003, the company launched its first Boston Market Rotisserie Grill, a concept offering rotisserie-cooked meats.<br />
Future expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Boston Market's menu features individual meals and family combos as well as a la carte offerings including salads, soups,<br />
sandwiches, gourmet sides, desserts and beverages. Boston Market’s signature menu items include rotisserie-roasted,<br />
double-marinated chicken, turkey, ham and meatloaf. Sides include mashed potatoes and gravy, steamed vegetables,<br />
butternut squash, creamed spinach and cornbread. The menu also features potpies and carved sandwiches. Newer menu<br />
choices include salads, sandwiches, wraps and individual desserts such as lemon mousse. In addition, packaged products<br />
such as scone mixes, blueberry salsa, wild mushroom sauce and bottles of wine are available for customer purchase in some<br />
units. <strong>Menu</strong> prices range from $1.75–$7.49 for individual meals and $16.99–$31.99 for family meals. Checks average $8.50.<br />
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80
Personnel |<br />
Richard K. Arras, CEO<br />
Greg Uhing, CFO<br />
Tim Jordan, V.P. of Procurement<br />
Trey Hall, Chief Brand Officer<br />
Boston Market hired Richard K. “Rick” Arras as President and Chief Executive Officer. Arras previously served as President<br />
and Chief Executive Officer of Shoney’s Inc. and Chief Operating Officer of Cracker Barrel Old Country Store. Arras replaces<br />
Michael Andres, who rejoined McDonald’s. (Nation’s Restaurant News 9/3/07)<br />
News & Other |<br />
Boston Market is being sold by McDonald’s to Sun Capital Partners for an undisclosed amount. Boston Market is a Golden,<br />
CO based home-meal-alternative chain with 630 locations nationwide. McDonald’s Corp. is selling the chain to focus solely on<br />
its corporate restaurant brand. Sun Capital Partners, based in Boca Raton, FL, is the owner of Kincaid’s Fish, Bruegger’s,<br />
Friendly’s and Palomino Restaurant Rotisseria Bar. (Restaurants & Institutions Online 8/6/07; Boston Business Journal 8/6/07;<br />
Seattlepi.com 8/6/07)<br />
McDonald’s sale of Boston Market has been cleared by federal antitrust regulators. McDonald’s plans to sell the chain to Sun<br />
Capital Partners for an undisclosed amount. (Associated Press 8/20/07)<br />
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81
Braum's Ice Cream & Dairy Stores<br />
Headquarters<br />
3000 N.E. 63rd St., Oklahoma City, Oklahoma 73121 USA<br />
Tel: (405)478-1656 Fax: (405)475-2460<br />
www.braums.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 330,000 320,000 318,000<br />
Company-owned ($000) 330,000 320,000 318,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 290 280 280<br />
Company-owned 290 280 280<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,150 1,140 1,135<br />
Concept Positioning |<br />
Braum's Ice Cream Stores are limited-service operations specializing in ice cream and other dairy products. The privately held<br />
chain operates 290 company-owned locations in the U.S.<br />
Units vary in size, with smaller, older stores accommodating 20–30 patrons. Newer stores have a sleek, modern look with<br />
glass walls, drive-thru service and seating for around 125 customers. An extensive remodeling program is under way to<br />
update older stores.<br />
Henry H. Braum began operations in 1933 with the purchase of a butter plant in Emporia, KS. In 1940, Braum began<br />
producing ice cream and opened several ice-cream stores. Bill Braum, Henry’s son, joined the company in 1949. The Braums<br />
sold the wholesale business in 1952, maintaining only the store operations, then named Peter Pan Ice Cream Stores. Bill<br />
Braum added stores until 1967, when the 61-unit chain was sold to Steffens Foods.<br />
<strong>Menu</strong> Positioning |<br />
Braum’s Ice Cream units offer breakfast, grill items and a dessert menu. Breakfast menu items include country-fried steak, hot<br />
cakes and sausage, bagel with ham, egg and cheese, cinnamon rolls and muffins. Grill items include hamburgers, bacon<br />
cheeseburger, chicken club, chicken strips, steak sandwich, french fries and salads. Recent menu addtions include a Jalapeño<br />
Jack Cheeseburger and a Breakfast Burrito. Beverages include malts, shakes, fruit smoothies, cherry limeade, coffees and<br />
sodas. Braum’s has a selection of more than 100 flavors of ice cream, frozen yogurt and frozen custard sold in half-gallon<br />
containers. Flavors offered in stores are rotated every four to six weeks; 27 flavors are available at all times. Options for<br />
premium, frozen yogurt, sherbet, frozen custard, fat-free and no-sugar-added frozen yogurt and premium light ice cream are<br />
included. <strong>Menu</strong> prices range from $1.29–$5.99. Checks average $4.<br />
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82
Technology |<br />
Braum’s Ice Cream and Dairy Stores will accept Express Pay from American Express in its units in Arkansas, Kansas,<br />
Missouri, Oklahoma and Texas. (Nation’s Restaurant News 10/10/07)<br />
Personnel |<br />
Tony Dostwick, CEO<br />
Mark Godwin, CFO<br />
Ronnie Windham, V.P. of Purchasing<br />
Bill Ricks, V.P. of Operations<br />
Terry Holden, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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83
Bravo! Cucina Italiana<br />
Headquarters<br />
777 Goodale Blvd Suite 100, Columbus, Ohio 43212 USA<br />
Tel: (614)326-7944 Fax: (614)437-7117<br />
www.bravoitalian.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 137,500 115,000 90,000<br />
Company-owned ($000) 137,500 115,000 90,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 35 32 25<br />
Company-owned 35 32 25<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,100 4,000 4,100<br />
Concept Positioning |<br />
Bravo! Cucina Italiana is an upscale casual-dining eatery specializing in a wide variety of Italian dishes, including pasta, pizza,<br />
and several Tuscan-style specialties prepared in display kitchens. Bravo! Development, Inc. is the parent company of Bravo!<br />
Cucina Italiana and operates over 35 locations nationwide.<br />
Units average 7,000 sq. ft. with seating for approximately 200. The concept offers tablecloth service in a relaxed setting<br />
featuring high-ceilings and an open exhibition kitchen. Designed to look like the courtyard of a ruin in Italy, broken columns,<br />
exposed brick and arches exude an authentic Roman atmosphere. Located in high-traffic, affluent urban areas, some<br />
restaurants even feature a boccie court.<br />
Rich and Chris Doody opened the first Bravo! Cucina Italiana in 1992 under the name Bravo! Italian Kitchen. The more<br />
upscale Brio Tuscan Grille opened in 1999. The Bravo! and Brio concepts remain the company’s key growth vehicles. In mid-<br />
2006, Bravo! Development Inc. announced the acquisition of the company by private equity firms Bruckman, Rosser, Sherrill &<br />
Co. and Castle Harlan, Inc. for $215 million. Future expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Specializing in freshly prepared made-to-order Italian cuisine, Bravo! Cucina Italiana’s menu focuses on pasta and lasagna<br />
dishes. Other dishes include grilled entrées such as grilled pork chops, steak and chicken, all served with an Italian flair. Pizza<br />
prepared from a wood-burning stove and salads are other popular dishes. Desserts include gelato, tiramisu and cheesecake,<br />
as well as specialty coffee drinks, port wines and sherries. Prices range from $5.99-$24.99 and checks average $18.<br />
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Expansion Plans |<br />
Bravo Development Inc. plans to open between five and 10 outlets for each of its Bravo and Brio restaurants over the next<br />
three to five years. The company operates 34 Bravo outlets and 20 Brio locations as well as two Bon Vie French Bistros and<br />
one outlet of the white-tablecloth restaurant Lindey’s. Bravo will expand in markets where it already has a strong team of<br />
regional managers and partners. (Chain Leader 4/07 p34)<br />
Promotion Plans |<br />
Bravo! Cucina Italiana is offering a free entrée costing up to $10 with the purchase of a second entrée of equal or greater<br />
value. The coupon is valid Sunday–Thursday until September 27. In addition, the chain will offer holiday gift cards beginning<br />
November 5. The restaurant’s new menu goes into effect on September 18. (Company Website 9/10/07)<br />
Personnel |<br />
Brad Herron, Purchasing Director<br />
Saed Mohseni, CEO<br />
Jim O'Connor, CFO<br />
Karen Brennan, CMO<br />
Philip Yandolino, Chief Culinary Officer<br />
News & Other |<br />
Bravo! Cucina Italian Restaurant and Bar is using the Randell FX Series refrigerated drawer to store fish for three months. The<br />
drawer remains cold even when it is opened repeatedly and keeps fish handy for cooks. (Nation’s Restaurant News 5/21/07<br />
p28)<br />
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85
Bruegger's Bagel Bakery<br />
Headquarters<br />
159 Bank St., Burlington, Vermont 05401 USA<br />
Tel: (802)660-4020 Fax: (802)652-9293<br />
www.brueggers.com<br />
Ownership: Private<br />
Segment: Limited Service Bagel<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 166,500 154,900 153,216<br />
Company-owned ($000) 100,300 92,800 82,055<br />
Franchised ($000) 66,200 62,100 71,161<br />
U.S. Number of Units 254 240 244<br />
Company-owned 151 147 132<br />
Franchised 103 93 112<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 691 654 635<br />
Concept Positioning |<br />
Bruegger's Bagel Bakery is the nation's second-largest bagel chain, offering an extensive selection of bagels and cream<br />
cheeses as well as sandwiches, salads and coffee. The privately held chain operates 254 units across the U.S., 103 of which<br />
are franchised.<br />
Stores average 1,600–2,400 sq. ft. with 45–60 seats and are located in strip centers, downtown areas or malls. Stores bake<br />
New York-style bagels throughout the day to ensure that at least three varieties are hot at all times. Inherent to the concept is<br />
the use of two certified "bake masters" to oversee bagel production. Twenty regional commissaries make dough that units use<br />
for proofing, boiling and baking. In addition, the company also produces its own proprietary cream cheese spreads in both<br />
lowfat and regular versions. Takeout and catering services are available.<br />
Bruegger's was founded in 1983 by Nordahl Brue and Mike Dressell, both of whom are still active in senior management. In<br />
1996, Quality Dining, one of its major franchisees, acquired the company, but in 1997, Quality Dining sold Bruegger’s back to<br />
founders Brue and Dressell for cash and stock. In 2003, the company was purchased for an undisclosed sum by CEO James<br />
Greco and Sun Capital Partners. Currently, the chain is seeking franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Bruegger's is open for breakfast, lunch and dinner, featuring bagels, cream cheeses, breakfast classics, salads, soups,<br />
“Softwiches,” specialty sandwiches, deli sandwiches and hot and cold beverages. Signature items are the 20-plus bagel<br />
varieties and 13 specialty cream cheese spreads. Bagels include Rosemary Olive Oil, Cinnamon Raisin, Cranberry Orange<br />
and Jalapeño. The chain also menus 25 sandwiches including Leonardo da Veggie, Santa Fe Turkey, Atlantic Smoked<br />
Salmon and Chicken Fajita. Soup offerings differ every day. An assortment of bakery items is offered, such as blondies,<br />
brownies and lemon bars. The breakfast menu includes bagel-and-egg sandwiches and wraps. Beverages include house<br />
brand Javahh! coffee, iced coffee, hot and iced tea, bottled juices, sodas, orange juice, hot mulled cider, milk and hot<br />
chocolate. In recent years, a systemwide menu development program contributed to a rise in the chain's check average. In<br />
2007, Bruegger's eliminated trans fats from all desserts on its menu and announced plans to remove trans fats from all menu<br />
items in the coming months. <strong>Menu</strong> prices range from 89¢–$12.29. Checks average $6.38.<br />
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Expansion Plans |<br />
Bruegger’s Enterprises Inc. plans to open 10 Bruegger’s Bagel Bakery units in Columbia and Charleston, SC, this spring. The<br />
first outlet is set to open in Columbia in early May. Bruegger’s operates over 240 restaurants nationwide. (The State 1/16/07)<br />
Bruegger’s continues its growth in North Carolina with an opening in Cary on November 1. The new unit marks the second<br />
opening in the town. (Company Website 10/23/07)<br />
Bruegger’s opened a new store in Hamden, CT, on November 26. The unit seats 50 guests. It marks the company’s ninth<br />
Connecticut location. As part of the grand opening celebration, a portion of opening-day sales was donated to the Connecticut<br />
Food Bank. (Company Release 11/26/07)<br />
Promotion Plans |<br />
Bruegger’s is planning to launch a new deal called Bruegger’s Duos starting January 17. The deal allows customer to pick two<br />
menu items. Choices include any half sandwich, cup of soup or half salad. (NRN Daily NewsFax 12/20/06)<br />
Bruegger’s will celebrate the beginning of summer on June 21 by offering free 16-oz. cups of its Green Mountain Coffee<br />
Roasters iced coffee. (Company Website 6/20/07)<br />
Bruegger’s Bagel Bakery will serve up red, white and blue bagels to commemorate the July 4th holiday and honor U.S. military<br />
troops and their families. Proceeds from the sale of these bagels will benefit Operation Homefront, a non-profit organization<br />
that provides emergency assistance and support to the families of deployed troops. (Company Release 6/26/07)<br />
<strong>Menu</strong> Development |<br />
Bruegger’s Bagel Bakery launched Bruegger’s Duos, a promotion that allows customers to pick from choices that include any<br />
half sandwich, any half salad and a cup of soup. The deal will be available through mid-March. (NRN Daily NewsFax 12/20/06)<br />
Bruegger’s introduced red, heart-shaped bagels for Valentine’s Day. (Company Website 2/14/07)<br />
Bruegger’s has eliminated trans fats from its desserts in all of its bakeries. The company plans to eliminate trans fats from all<br />
of its menu items in the next few months. (Company Release 3/1/07)<br />
Bruegger’s added new Tossed-For-You Salad Wraps, which allow customers to order any of the chain’s salads inside a wrap<br />
for the same price as a salad. All of the wraps are prepared with fresh lettuce and spring mix and include: • Build Your Own<br />
Salad—choice of three vegetables, one meat, one cheese, one topping and any dressing • Caesar Salad—topped with Asiago<br />
cheese, croutons and classic Caesar dressing with a dash of fresh lemon • Chicken Caesar Salad—topped with Asiago<br />
cheese, grilled chicken strips and croutons with Caesar dressing • Sesame Chicken Salad—grilled chicken strips, sesame<br />
seeds, sliced almonds and chow mein noodles with Asian sesame ginger dressing • Mandarin Medley Salad—Mandarin<br />
oranges, dried cranberries, sliced almonds and blue cheese crumbles with balsamic vinaigrette dressing. (Company Release<br />
5/25/07)<br />
Bruegger’s brought back cold-brewed Green Mountain Iced Coffee. The chain also added the Raspberry Rhapsody, featuring<br />
raspberries with sweet cream and topped with whipped cream. (Company Release 5/25/07)<br />
Franchise Activity |<br />
Bruegger’s Enterprises Inc. entered into an agreement with TBM Inc. to develop five new units in Phoenix. The company plans<br />
to open 50 new restaurants in 2007 and another 50 in 2008. (Company Website 2/15/07)<br />
Bruegger’s Enterprises signed an agreement with Rick Cowley and TBM Inc. for five outlets in Phoenix. Bruegger’s plans to<br />
open 50 bakery-cafés in 2007 and another 50 in 2008. There are 240 Bruegger’s outlets nationwide. (Foodservice Equipment<br />
& Supplies 2/21/07)<br />
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Personnel |<br />
Philip Smith, V.P. of <strong>Menu</strong> Development<br />
James Greco, CEO<br />
Robert Parette, CFO<br />
Scott Berkman, V.P. of Purchasing<br />
Donald Ritacca, V.P. of Operations<br />
Paula M. Doyle, V.P. of Marketing<br />
Bruegger’s Enterprises Inc. announced the promotion of Paula M. Doyle to vice president of marketing. Doyle has served as<br />
senior marketing director for the past two years. (QSRmagazine.com 11/14/07)<br />
News & Other |<br />
Bruegger’s Enterprises Inc. reported for the fourth quarter same-store sales increased 5.1%. (Company Website 2/5/07)<br />
Bruegger’s Wisconsin locations will no longer use eggs from caged hens. (Madison.com 3/24/07)<br />
Bruegger’s Bagel Bakery is focusing on specialty coffees, afternoon snacks, better customer service and improved<br />
merchandising to compete with bakery-cafés, coffeehouses and traditional fast-food locations that offer breakfast items.<br />
Bruegger’s is looking to boost sales by offering lunch and late afternoon options. New menu items include desserts, salty<br />
snacks, and combo meals such as Bruegger’s Duo, a choice of a half sandwich and a half soup or salad. The chain will also<br />
expand its specialty drink offering such as espresso. The items are to be introduced in the second half of the 2007 fiscal year.<br />
(Nation’s Restaurant News p 8 4/16/07)<br />
Bruegger’s Enterprises Inc. reported for the first quarter ended April 17 net earnings increased 6.3% to $51.3 million from<br />
$48.3 million for the same period last year. Same-store sales rose 0.8% systemwide. This marks the 12th consecutive quarter<br />
of growth for the chain. (Company Website 5/15/07)<br />
Bruegger’s Enterprises Inc. reported for the second quarter ended July 10 systemwide same-store sales rose 10.5%. The<br />
period marks the 13th consecutive quarter of growth. (Company Release 8/2/07)<br />
Bruegger’s Bagels will open two units in Logan International Airport in Boston and Cincinnati/Northern Kentucky International<br />
Airport by late November. Both outlets will serve the chain’s full menu and the Boston location will also offer wine and beer.<br />
(Nation’s Restaurant News 9/10/07)<br />
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88
Bubba Gump Shrimp Co.<br />
Headquarters<br />
209 Avenida Fabricante Suite 200, San Clemente, California 92672 USA<br />
Tel: (949)366-6260 Fax: (949)336-6261<br />
www.bubbagump.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 126,000 100,000 116,150<br />
Company-owned ($000) 126,000 100,000 102,440<br />
Franchised ($000) - - 13,710<br />
U.S. Number of Units 21 15 18<br />
Company-owned 21 15 17<br />
Franchised - - 1<br />
International Sales ($000) 18,000 10,000 9,700<br />
International Units 7 5 4<br />
Average Sales/Unit ($000) 7,000 6,400 7,475<br />
Concept Positioning |<br />
Inspired by Paramount's 1994 blockbuster movie "Forrest Gump," Bubba Gump Shrimp Co. Restaurant & Market is a fullservice,<br />
casual-dining chain serving up seafood entrées in a lively, energetic atmosphere that appeals to a wide range of<br />
diners. In addition to its numerous shrimp appetizers and entrées , Bubba Gump Shrimp Co. offers several bold and colorful<br />
signature cocktails. Bubba Gump Shrimp Co. operates nationwide, from California to New York. Its domestic units are all<br />
company-owned. Parent company Bubba Gump Shrimp Co. Restaurants Inc. franchises a number of units in Bali, Hong Kong,<br />
Japan, Mexico and the Phillippines.<br />
Units average around 10,000 sq. ft. and seat approximately 200. The restaurants feature décor and ambiance stemming from<br />
the motion picture. Each unit takes on the look of a "Southern shrimp shack" with a "down-home" décor infused with<br />
backdrops, scripts and other artifacts that are designed to evoke memories of scenes from the movie, including a mock-up<br />
"The Jenny" shrimp boat and "Mama Gump's House." Tables are furnished with two license plates on chains to be used by<br />
customers during their visit. A green license plate reading "Run, Forrest, Run" should be left in place if guests have all that<br />
they need. However, if help is needed, guests may use a red license plate that reads, "Stop, Forrest, Stop" in order to signal<br />
help from an employee. To add to its allure, the concept features a retail store which reportedly accounts for 20–30% of its<br />
sales. Retail items range from Bubba's shrimp cookbook and the infamous "box of chocolates" to Gump-inspired T-shirts and<br />
hats.<br />
The first Bubba Gump Shrimp Co. Restaurant & Market opened in 1996, on Monterey's Cannery Row, as a joint venture<br />
between Rusty Pelican Restaurants, Inc. and Paramount Pictures. In 2007, Bubba Gump Shrimp Co. Restaurants Inc. signed<br />
a letter of intent to grant franchise rights to Mubarek Al-Hassawi Restaurant Development Group, a firm based in the Middle<br />
East. Under terms of the deal, a dozen Bubba Gump units are expected to launch in Dubai and Kuwait City, among others.<br />
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<strong>Menu</strong> Positioning |<br />
Bubba Gump Shrimp Co. offers one menu for lunch and dinner that features appetizers, sandwiches, salads, sides, Forrest’s<br />
Favorites, Bubba’s Shrimp Specials, desserts, smoothies and beverages. The menu draws on its shrimp theme by offering<br />
some 15 shrimp specialties including fried shrimp, steamed shrimp, popcorn shrimp, shrimp po' boy, shrimp New Orleans,<br />
drunken shrimp and coconut shrimp. Its signature item is a combination of fried shrimp, mahi-mahi and lobster called "Bucket<br />
of Boat Trash." A variety of "non-shrimp" entrées are featured on the menu and include the All-American hamburger, BBQ<br />
Pork Sandwich, Classic Caesar Salad and Run Chicken Run—an entrée salad featuring grilled chicken, Gorgonzola cheese<br />
and pecans. A kids’ menu is available. Desserts include Key Lime Pie, Sparklin’ Apple Cobbler and “You Have to Share”<br />
Chocolate Cake. Full liquor service includes domestic and imported beer and wine, as well as an entire menu of specialty<br />
cocktails. <strong>Menu</strong> prices range from $1.99–$18.99. Checks average $12 at lunch and $20 at dinner.<br />
Expansion Plans |<br />
Bubba Gump Shrimp Co. wants to open 35–50 restaurants over the next five years. The chain is looking to eventually have at<br />
least 100 units nationwide. Expansion efforts will focus on the San Diego, New York, Phoenix and Florida markets. Bubba<br />
Gump also hopes to expand internationally into the Middle East, Asia, the United Kingdom and Europe. (Monterey Herald<br />
1/24/07)<br />
International Activities |<br />
Bubba Gump Shrimp Co. inked a deal with Mubarak Al-Hassawi Restaurant Development Group to open 12 outlets in the<br />
Middle East. The units are slated to open over the next several years in Dubai, Kuwait and other Gulf countries. The deal is<br />
expected to generate $50–$60 million in system-wide revenues. (Asia Pulse 3/29/07; NRN Daily NewsFax 3/30/07)<br />
Personnel |<br />
Martin Ibarra, Corporate Chef<br />
Cathy Petterson, Director of Marketing<br />
Scott Barnett, CEO<br />
Dan Bylund, CFO<br />
Tim Busald, V.P. of Purchasing<br />
Tim Busald, V.P. of Operations<br />
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90
Buca di Beppo<br />
Headquarters<br />
1300 Nichollet Mall Suite 5003, Minneapolis, Minnesota 55403 USA<br />
Tel: (612)225-3400 Fax: (612)225-3302<br />
www.bucadibeppo.com<br />
Ownership: Public<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 253,800 239,000 232,000<br />
Company-owned ($000) 253,800 239,000 232,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 92 93 95<br />
Company-owned 92 93 95<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,663 2,545 2,445<br />
Concept Positioning |<br />
Buca di Beppo is a full-service chain featuring Southern Italian-style food served on oversized platters in large portions meant<br />
for sharing. The chain is publicly owned by Buca Inc. and operates 92 company-owned units in the U.S.<br />
Units average about 7,500 sq. ft. with seating for 250-300 guests.Buca di Beppo selects downtown sites, urban districts and<br />
suburban locations for its restaurants.Buca di Beppo is open for dinner only during the week and opens at noon on weekends;<br />
however some locations will open early for private parties. Signature features include an in-the-kitchen table and the Pope’s<br />
Table, which seats 14-18 with a throne-like oversized chair at its head. Old-style Italian décor includes vintage family photos<br />
as well as photos of famous people including Italian and Italian-American icons such as Sophia Loren and Jo DiMaggio . Neon<br />
signs, bathroom kitsch, red-and white-checked tablecloths and music of Dean Martin and Frank Sinatra add to the<br />
atmosphere.<br />
Buca di Beppo was founded in 1993 by Philip Roberts and Peter Mihajlov. Buca Inc. completed an initial public offering in<br />
1999 and a secondary stock offering in 2000 . After purchasing the similar concept Vinny T's of Boston, Buca announced plans<br />
to convert most of its 11 units to the Buca di Beppo concept, but in 2006, Buca sold its Vinny T's units to Bertucci's Corp. for<br />
$6.8 million. Currently, Buca, Inc. has no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Buca di Beppo’s menu features appetizers, salads, pastas, pizzas, entrées, Beppo’s Favorites, baked pasta specialties, sides<br />
and desserts. Signature items are family-style portions of Southern Italian-style dishes including red-sauce specialties like<br />
Chicken Cacciatore and a signature version of Spaghetti and Meatballs (three half-pound meatballs over two pounds of pasta).<br />
Also offered are peasant fare such as Rigatoni Positano and seasonal specialties such as Lemon Profiteroles. The menu also<br />
features Per Due items that pair smaller portions of several of its most popular entrée items to suit small parties. There are<br />
also two to three daily specials offered from a list of 70 items. Fettuccine entrées include Fettuccine Alfredo, Fettuccine<br />
Gamberi and Fettuccine Supremo. Other hearty selections include Chicken Cannelloni and Gnocchi Al Telefono. Popular<br />
pizzas include the Neapolitan and the Gamberi. Appetizers include fried calamari, mussels marinara and bruschetta. Sides<br />
consist of meatballs, green beans with olive oil and lemon-and-garlic mashed potatoes. Newer menu items include Artichoke<br />
Spinach Dip, Porchetta Rustica and Chocolate Vesuvio. <strong>Menu</strong> prices range from $5.99–$19.99. Checks average $17.<br />
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Promotion Plans |<br />
Buca di Beppo is offering $10 off any $30 purchase. The offer is valid for dine-in or takeout through August 23. (Company<br />
Website 8/16/07)<br />
Buca di Beppo is offering $10 off any purchase of $30. The offer is valid for dine-in or takeout until October 1. (Company<br />
Website 9/27/07)<br />
<strong>Menu</strong> Development |<br />
Buca di Beppo is offering a menu of single-portion lunches at several of its units. Some of the selections offered include a<br />
Chicken or Salmon Caesar Salad, Chopped Antipasto, Lasagna, Spaghetti with Meatball, Spaghetti Marinara, Ravioli al<br />
Pomodoro and Penne Arrabbiata. The chain said that about 74 outlets would offer the lunch menu year-round whereas other<br />
restaurants will discontinue the items by year’s end. (Nation’s Restaurant News 11/06/06 p80)<br />
Ricotta cheese is being used in a variety of dishes, including appetizers and desserts. At Porter House New York in New York<br />
City, guests will be served a complimentary crock of sheep’s milk ricotta cheese and rosemary flat bread with their cocktails. In<br />
Chicago, Schwa Chef Michael Carlson prepares a quail egg ravioli with ricotta, brown butter and Parmigiano-Reggiano. Buca<br />
di Beppo restaurants menu chicken cannellon filled with chicken sausage, fresh sage, provolone and ricotta and finished with<br />
Romano and marinara sauces. The Metropolitan Club in Boston prepares a ricotta pound cake topped with mascarpone gelato<br />
and cookies. (Nation’s Restaurant News 12/04/06 p21)<br />
Buca di Beppo is removing trans fatty acids from all of its oils this spring. The chain will use Wesson Smart Choice<br />
Cottoneseed Canola Oil in the preparation of its dishes. (Company Release 5/01/07; NRN Daily NewsFax 5/02/07)<br />
Buca di Beppo rolled out three new entrées. Selections include: • Pizza Angelo—Alfredo sauce, mozzarella, sliced chicken<br />
breast, roasted corn, mushrooms, thyme and homemade Romano potato chips • Penne Campofiore—vegetarian pasta<br />
featuring zucchini, artichoke hearts, sundried tomatoes, escarole, garlic and Romano cheese in a light vegetable broth •<br />
Shrimp Fra Diavolo—spicy pasta featuring crispy shrimp and tender scallops tossed with peppers and spaghetti in a red fra<br />
diavolo sauce (Company Website)<br />
Personnel |<br />
Stephen Hickey, Chief Marketing Officer<br />
Mickey Mills, S.V.P. of Operations<br />
Wally Doolin, CEO<br />
Kaye O'Leary, CFO<br />
Jeff Abramson, V.P. of Purchasing<br />
Loren Lord, V.P. of Development<br />
Buca Inc. chief operating officer Modesto Alcala has resigned, effective January 2. No replacement has been named. (NRN<br />
Daily NewsFax 12/6/06)<br />
News & Other |<br />
Buca Inc. reported for the third quarter ended September 24 a net loss of $5.1 million from a loss of $20.9 million for the same<br />
period last year. Same-store sales increased 2.7% at Buca di Beppo. (Company Release 10/31/06)<br />
Buca Inc. reported for the fourth quarter same-store sales rose 4%. (Businessweek.com 1/8/07)<br />
Buca Inc. reported for the year ended December 31 same-store sales rose 3.8%. (NRN Daily NewsFax 1/16/07)<br />
Buca Inc. reported for the first quarter same-store sales increased 0.2%. This marks the 10th consecutive quarter of samestore<br />
sales growth at Buca di Beppo. (Company Release 4/10/07)<br />
Buca Inc. reported for the first quarter ended April 1 a net loss of $2.8 million from income of $1.3 million for the same period<br />
last year. Revenues decreased 3.1% to $62.8 million from $64.8 million. Same-store sales increased 0.2%. (Company<br />
Release 5/8/07)<br />
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Buca Inc. reported that for the second quarter revenue increased 1.7% to $62.1 million from $61.0 million for the same period<br />
last year. Same-store sales rose 3.7%, which marks the 11th consecutive quarter of positive same-store sales growth.<br />
(Company Release 7/10/07)<br />
BUCA Inc. and the Securities and Exchange Commission settled a lawsuit alleging violations of federal securities laws by<br />
former BUCA officials. The company was not required to pay a fine in connection with the settlement.<br />
(Restaurantnewssource.com 10/1/07)<br />
BUCA Inc. reported for the third quarter same-store sales increased 1.8% over year-before figures. The increase marks the<br />
12th consecutive quarter of positive sales growth. Preliminary revenue grew 0.2% to $56.5 million from $56.4 for the same<br />
period last year. (Company Release 10/9/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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93
Buffalo Wild Wings Grill & Bar<br />
Headquarters<br />
1600 Utica Ave South Suite 700, Minneapolis, Minnesota 55416 USA<br />
Tel: (952)593-9943 Fax: (952)593-9787<br />
www.buffalowildwings.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 869,047 656,490 511,396<br />
Company-owned ($000) 247,150 185,823 152,221<br />
Franchised ($000) 621,897 470,667 359,175<br />
U.S. Number of Units 429 370 306<br />
Company-owned 139 122 103<br />
Franchised 290 248 203<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,150 1,980 1,909<br />
Concept Positioning |<br />
Buffalo Wild Wings is a family-friendly casual-dining chain specializing in authentic Buffalo wings and 12 signature sauces.<br />
The restaurant began as a chain of college hangouts and has evolved into a sports-themed concept offering an assortment of<br />
burgers, sandwiches, salads and wings for lunch and dinner. A modified full-service format, with orders taken at the counter,<br />
helps to keep prices down. There are currently over 450 company-owned and franchised locations in 37 states.<br />
Units are freestanding and average 6,000 sq. ft. with seating for 240. The chain upgraded the décor in 2004 to incorporate a<br />
lounge, carryout area, audiovisual systems and a contemporary atmosphere. The lounge seats 32 people and features<br />
banquette seating and high-top tables. The restaurant also added more video games and a ticker board displaying menu<br />
specialties, sports scores and Buffalo Wild Wings’ stock price.<br />
Jim Disbrow and Scott Lowery opened the first unit at Ohio State University in Columbus, OH, in 1982. Originally marketed to<br />
college students, the concept has achieved growth in recent years by marketing to families and workers. The chain is<br />
extending its reach nationwide, with several area development agreements to open new franchised units in Arizona, California,<br />
Nevada, New York, Oregon and South Carolina.<br />
<strong>Menu</strong> Positioning |<br />
Buffalo Wild Wings' menu features Buffalo-style chicken wings, appetizers, burgers, sandwiches, salads and desserts for lunch<br />
and dinner. Popular items are the Buffalo Wings and Buffalitos, a flour tortilla stuffed with chicken or chili, veggies and a<br />
signature sauce. The chain has expanded its line of signature wing sauces to include Parmesan-Garlic, Honey BBQ, Asian<br />
Zing and Mango Habanero. Sandwiches include the Buffalo Ranch Chicken and BBQ Bacon Chicken sandwiches. Appetizers<br />
include mozzarella sticks, mini corn dogs and chicken tenders. Alcoholic beverages are available. A kids’ menu is available.<br />
Takeout and catering services are offered. Prices range from $3.99-$13.99 and checks average $10.<br />
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published.<br />
94
Expansion Plans |<br />
Buffalo Wild Wings Grill & Bar is looking to continue expanding in Minnesota but offered no details on the number of planned<br />
units. The chain has said that it wants to increase its total restaurant count across the board by 15% a year. In other news,<br />
Buffalo Wild Wings has expanded its national advertising to include sports outlets such as CBS Sports and Westwood One, a<br />
radio station. The spots for the chain will air during the NCAA basketball season and on Westwood One’s coverage of National<br />
Football League games. Buffalo Wild Wings currently has 415 restaurants in 37 states. (StarTribune.com 11/05/06; Nation’s<br />
Restaurant News Online 10/26/06)<br />
Buffalo Wild Wings Inc. plans to acquire its nine franchised locations in Las Vegas, including one currently under construction.<br />
The company expects the acquisition to be completed in the fourth quarter of fiscal 2007. The company also declared a twofor-one<br />
stock split of its outstanding shares of common stock. Each shareholder will receive one share of stock for each share<br />
owned. (Company Release 5/18/07)<br />
Promotion Plans |<br />
Buffalo Wild Wings has increased its national ad fund from 2.5% to 3%. With the increase, the company was able to buy<br />
national television advertising on ESPN. (Company Release 11/8/06)<br />
Buffalo Wild Wings gave out free wings for a year to the first 100 customers in line at its new location in Sioux City, IA, on June<br />
18. The rest of the customers in line each received six free wing coupons. The chain also held a “Blazin’ Challenge,” a timed<br />
wing eating contest with a person or team eating a total of 12 wings with the restaurant’s hottest wing sauce. Three police<br />
officers and three firefighters faced off in the competition; the firefighters won. (Journal.com 6/18/07)<br />
Buffalo Wild Wings launched an “Ultimate 25” sweepstakes sponsored by Coca-Cola. Participants can pick up a game card at<br />
any Buffalo Wild Wings restaurant and enter its game code online for a chance to win one of 25 “Ultimate Experiences.” For<br />
each valid code entered, participants will receive one entry into the sweepstakes. Prizes include a Lake Tahoe Skiing<br />
Package, a trip to the 2008 NCAA Men’s Final Four tournament and a Coca-Cola Racing Ride-a-long package. (Company<br />
Website 8/31/07)<br />
Buffalo Wild Wings Inc. launched its first fully national television campaign. The chain signed deals with cable networks to<br />
reach existing and future markets. It also signed product-placement deals with networks such as Spike TV, Court TV and<br />
Fuse. Buffalo Wild Wings also partnered with Big Ten Network to become the exclusive sponsor of the half-time show during<br />
Big Ten college football games, (NRN Daily NewsFax 10/10/07)<br />
Buffalo Wild Wings premiered its first national TV campaign. The 465-unit casual-dining chain has signed partnership deals to<br />
air the commercials on 12 different cable networks, including during prime time and late night programs such as “The Late<br />
Show with David Letterman” and “Saturday Night Live.” Buffalo Wild Wings has increased its advertising spending by 40%<br />
from last year. (Nation’s Restaurant News Online 10/9/07)<br />
Buffalo Wild Wings has launched its “Film School” contest. The promotion, which accepts entries through November 26, asks<br />
entrants to produce their own 60-second video commercial. Entries are open to creativity, but must include Buffalo Wild Wings’<br />
tagline, “You have to be here.” Select videos will be available on the company’s website for public vote in December. A grand<br />
“Dream Den” prize will be awarded to the winner. The prize includes a 52-inch flat-panel TV, home theater system, kegerator<br />
(beer dispensing system) and free wings for a year. Four runners-up will also receive free wings for a year.<br />
(bwwfilmschool.buffalowildwings.com 11/01/07)<br />
<strong>Menu</strong> Development |<br />
Buffalo Wild Wings rolled out a Fish & Chips combo for Lent. The company also menus a Fish & Popcorn Shrimp Platter.<br />
(Company Release 2/23/07)<br />
Technology |<br />
Buffalo Wild Wings revamped its website. The site’s homepage now features a 3-D football field with Buffalo Wild Wings<br />
products, such as bottled sauce and merchandise. Each item on the football field takes the customer to a different page of the<br />
site. In addition to information, the site is full of games and gadgets. (Company Website 10/5/07)<br />
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published.<br />
95
Personnel |<br />
Kathy Benning, S.V.P. of Marketing<br />
Judy Shoulak, S.V.P. of Operations<br />
Mark Lutz, S.V.P. of Purchasing<br />
Dudley McMahon, S.V.P. of Research & Development<br />
Sally Smith, CEO<br />
Mary Twinem, CFO<br />
News & Other |<br />
Buffalo Wild Wings Inc. reported for the fourth quarter ended December 31 net earnings increased 81% to $6.7 million from<br />
$2.6 million for the same period last year. Revenues rose 41.3% to $83.3 million from $58.9 million. Same-store sales grew<br />
13.2%. (Company Release 2/15/07)<br />
Buffalo Wild Wings reported for the first quarter ended April 1 net earnings increased 57% to $5.5 million from $3.5 million for<br />
the same period last year. Revenues grew 24.6% to $80 million from $64.2 million. Same-store sales rose 8.7% at companyowned<br />
units and 3.3% at franchised units. (Company Release 5/1/07)<br />
Buffalo Wild Wings’ Senior Vice President James M. Schmidt sold 1,500 shares of common stock on May 25 for $86.57 to<br />
$86.65 apiece. (Associated Press 5/29/07)<br />
Buffalo Wild Wings President and CEO Sally J. Smith sold 8,000 shares of common stock under a prearranged trading plan.<br />
Smith sold the shares on July 16 for $42.48 apiece. (Associated Press 7/17/07)<br />
Buffalo Wild Wings Inc. reported for the second quarter ended July 1 net earnings increased 58.3% to $3.8 million from $2.4<br />
million for the same period last year. Revenues grew 22.1% to $76.0 million from $62.2 million. Same-store sales rose 8.1% at<br />
company-owned restaurants and 4.0% at franchised units. (Company Release 7/31/07)<br />
Buffalo Wild Wings President and CEO Sally J. Smith sold 8,000 shares of common stock under a prearranged trading plan.<br />
Smith sold the shares on October 15 for $39–$39.18 per share. (Associated Press 10/16/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
96
Bugaboo Creek Steak House<br />
Headquarters<br />
1450 Route 22 West, Mountainside, New Jersey 07092 USA<br />
Tel: (908)518-1800 Fax: (908)518-1509<br />
www.bugaboocreeksteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 109,824 97,300 95,091<br />
Company-owned ($000) 109,824 97,300 95,091<br />
Franchised ($000) - - -<br />
U.S. Number of Units 31 31 28<br />
Company-owned 31 31 28<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,485 3,435 3,617<br />
Concept Positioning |<br />
Bugaboo Creek Steakhouse is a casual-dining concept with a friendly, relaxed atmosphere. The full-service chain has created<br />
its unique positioning within the steak sector through the use of electronically animated wildlife characters that unexpectedly<br />
come to life and tell tales of Bugaboo Creek. The characters are trademarked and include Moxie the Moose, Bill the Buffalo<br />
and Timber the Tree. This format of moderately priced meals and laid-back atmosphere attracts a great number of families<br />
with children. Bugaboo operates both company-owned and franchised units in the Northeast, Southeast and Mid-Atlantic<br />
states of the U.S.<br />
All units are freestanding and are large, ranging in size from 8,500–11,000 sq. ft. with seating for 270–325. Designed to<br />
resemble a Canadian Rocky Mountain lodge, decor includes wildlife photos, hunting trophies, fly fishing and other sports<br />
equipment, including skis, snow shoes, etc.<br />
Bugaboo Creek began operations in 1990. It made its initial public offering in 1994. In mid-1996, the company was acquired by<br />
RARE Hospitality International, Inc. In February 2007, RARE announced the sale of Bugaboo Creek to Bugaboo Creek<br />
Acquisition LLC, a wholly-owned subsidiary of Charlie Brown’s Acquisition Corp., for $28 million. Charlie Brown’s Acquisition is<br />
owned by private equity firm Trimaran Capital Partners. The transaction is expected to be finalized during the third quarter of<br />
2007.<br />
<strong>Menu</strong> Positioning |<br />
Bugaboo Creek promotes “Canadian Flavor From the Rockies” with separate lunch and dinner menus that feature appetizers,<br />
specials, sandwiches, burgers, steaks, combo platters, seafood, salads, pasta, sides, desserts and beverages. Signature<br />
menu items include seasoned steaks such as the Lodge Filet, Timber Creek Sirloin Steak and Honey Pepper Ribeye, classic<br />
prime rib, spit-roasted chicken, barbecue ribs, grilled salmon and trout, fresh fish and beer-marinated hamburgers. Appetizers<br />
include Canadian Cheese Spinach Dip, BBQ Chicken Nachos, Bear Trap Quesadillas and Baked Onion ‘N’ Ale Soup.<br />
Bugaboo’s specialty drink menu features creative cocktails such as the 1800 Avalanche Margarita and the Rocky Mountain<br />
Mudslide. A kids’ menu is also available. <strong>Menu</strong> prices range from $2.79–$12.99 for lunch and $2.75–$19.49 for dinner. Checks<br />
average $16.<br />
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97
Expansion Plans |<br />
Charlie Brown’s plans to acquire Bugaboo Creek Steakhouse from Rare Hospitality International Inc. for $28 million. The<br />
transaction is expected to be completed in the third quarter of 2007. (Company Release 2/27/07)<br />
Promotion Plans |<br />
Bugaboo Creek Steak House named the Small Army of Boston as its marketing agency. Small Army will be responsible for<br />
developing print, television and radio advertisements as well as point-of-purchase material, public relations efforts and<br />
interactive programs. Small Army will also handle buying and media planning. (Nation’s Restaurant News 5/21/07 p20)<br />
<strong>Menu</strong> Development |<br />
Bugaboo Creek Steak House debuted two new summer drinks, Wild Maine Blueberry Mojito, with Blackberry Monin, lemonlime<br />
soda, Bacardi rum and lime juice blended with Wild Maine blueberries and served over ice with fresh mint leaves and a<br />
lime wedge; and Wild Maine Blueberry Lemonade, lemonade mixed with Wild Maine blueberries and served over ice.<br />
(Company Website)<br />
Bugaboo Creek Steak House debuted Wild Maine Cheesecake, classic New York-style cheesecake topped with fresh<br />
strawberries and Wild Maine blueberry sauce. (Company Website)<br />
Bugaboo Creek Steak House launched a Lobster at the Lodge menu through September. The menu includes: • Lobster &<br />
Shrimp Nachos—diced lobster and shrimp in a creamy white wine sauce over crispy tricolor tortilla chips with a mix of sautéed<br />
leeks, garlic and Monterey Jack cheese, finished with melted Cheddar cheese, diced tomatoes and fresh chopped chives and<br />
served with sour cream and salsa • Shrimp & Lobster Bisque—nuggets of lobster and shrimp in a rich lobster bisque finished<br />
with a dash of cream and chopped parsley • Lobster & Asparagus-Topped Filet—7-oz. Lodge Filet grilled to order and topped<br />
with lobster sautéed with asparagus and sundried tomato-herb cream, served with a Caesar, Garden or Bugaboo Wedge<br />
salad and choice of side • Lobster & Shrimp Pasta—shrimp and lobster sautéed with garlic, diced tomatoes and fresh basil in<br />
spicy marinara over penne pasta, finished with Parmesan cheese • The Creek’s Filet & Lobster Tail—lobster tail with hot<br />
drawn butter paired with a 7-oz. Lodge Filet with a Caesar, Garden or Bugaboo Wedge salad and choice of side • Sirloin &<br />
Lobster Mac ’n’ Cheese—8-oz. USDA Choice sirloin paired with a blend of lobster, white wine cream sauce, Cheddar and<br />
Monterey Jack cheese and penne pasta, finished with scampi bread crumbs and baked in a cast-iron skillet, served with a<br />
Caesar, Garden or Bugaboo Wedge salad and choice of side • Surf & Turf Combo—lobster roll filled with lobster salad over<br />
lettuce paired with Campfire Cheesesteak prepared with prime rib, ranch seasoning, grilled onions, sautéed red and green<br />
peppers, Swiss cheese and mayonnaise, both accompanied by seasoned french fries • Lobster Wedge Salad—lobster salad,<br />
ranch dressing, crispy cucumbers, diced tomatoes, crumbled bacon and chopped chives over a Bugaboo Wedge. (Company<br />
Website)<br />
Bugaboo Creek Steak House added two appetizers and three steak entrées to its menu. New appetizers are The Creek’s<br />
Calamari, with chopped garlic and hot pepper rings; Lodge Appetizer Combo, a sampling of Bugaboo Wings, Canadian<br />
Cheese Spinach Dip with tortilla chips and hand-battered Snowbird Chicken with honey mustard dipping sauce. Steak<br />
additions are the Portabella Bleu Cheese Filet, Smoky Ridge Bone-In Ribeye and Bourbon Flat Iron Steak. (Company<br />
Website)<br />
Personnel |<br />
Russell D'Anton, CEO<br />
David Dick, CFO<br />
Craig Godfrey, V.P. of Operations<br />
Amy Parker, V.P. of Marketing<br />
Michael Mulligan, V.P. of R&D<br />
News & Other |<br />
Rare Hospitality International is selling its Bugaboo Creek Steakhouse to Trimaran Capital Partners for $28 million. Rare has<br />
been looking to sell the 31-unit Bugaboo since last September. Rare is the owner of Longhorn Steakhouse and Capital Grille.<br />
Private-equity group Trimaran owns the El Pollo Loco and Charlie Brown’s chains. (NRN Daily NewsFax 2/28/07; Company<br />
Release 2/27/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
98
Burger King<br />
Headquarters<br />
5505 Blue Lagoon Dr., Miami, Florida 33126 USA<br />
Tel: (305)378-3000 Fax: (305)378-7123<br />
www.bk.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 8,392,000 8,355,000 7,710,000<br />
Company-owned ($000) 902,000 780,000 635,000<br />
Franchised ($000) 7,490,000 7,575,000 7,075,000<br />
U.S. Number of Units 7,178 7,379 7,635<br />
Company-owned 888 721 635<br />
Franchised 6,290 6,658 7,000<br />
International Sales ($000) 3,050,000 3,000,000 2,800,000<br />
International Units 3,654 3,400 3,400<br />
Average Sales/Unit ($000) 1,158 1,120 1,000<br />
Concept Positioning |<br />
Burger King Corp., headquartered in Miami, is the world's second largest hamburger chain. Its restaurants serve breakfast,<br />
lunch, dinner and snacks. Many also offer drive-thru service in addition to their dine-in and carryout trade and some locations<br />
have extended their hours of business to as late as 4:00 a.m. There are nearly 12,000 worldwide locations in more than 65<br />
countries and U.S. territories. Almost 90% of Burger King units are owned and operated by independent franchisees. Its<br />
signature offering, The Whopper, has been around since 1958.<br />
There are a wide variety of restaurant designs currently in use. Burger King's kitchen, drive-thru window and seating are<br />
standardized throughout the system, but operators may choose from approximately 35 interior packages or create a unique<br />
look with company approval. A number of units have added playgrounds. Many are freestanding, but the system also includes<br />
a variety of nontraditional locations including colleges, military bases, malls, bus terminals, gas stations and turnpike/toll road<br />
rest stops.<br />
In 2005, Burger King debuted a new prototype in Miami's Liberty City. The concept offers less seating than its traditional<br />
outlets, with room for approximately 40 customers, plasma televisions, cobalt blue lighting fixtures and an etched glass noise<br />
buffer. This new design format costs the company 30% less to construct.<br />
Burger King is planning aggressive expansion into China, with up to 1,000 new units operating by 2015.<br />
James McLamore and David Edgerton opened the first "Home of the Whopper" in Miami in 1954. Pillsbury acquired the chain<br />
in 1967. It was then acquired in 1988 by Grand Metropolitan PLC, a world leader in the food, drinks and retailing industries and<br />
became part of their retailing group. In late 1997, Grand Metropolitan merged with Guinness PLC, and began operating under<br />
the name Diageo PLC. Burger King was sold in 2002 for $2.26 billion by Diageo PLC to three U.S. investment houses,<br />
including Texas Pacific Group, Boston-based Bain Capital and Goldman Sachs Capital Partners. Several major Burger King<br />
franchisees filed for Chapter 11 bankruptcy in 2004, closing many of their units due to debt and underperforming stores. In<br />
2006, Burger King went public with a $425 million IPO, the largest in U.S.-based restaurant history. Because of the IPO, the<br />
company was able to pay down 25% of its debt. The company has recently announced its use of new trans fat free oils.<br />
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published.<br />
99
<strong>Menu</strong> Positioning |<br />
Burger King's menu features flame-broiled hamburgers and cheeseburgers, chicken, fish and veggie burgers, salads,<br />
breakfast, sides, desserts and beverages. Its signature item is the WHOPPER, a ¼-lb. of fire-grilled beef, served with<br />
tomatoes, lettuce, mayonnaise, ketchup, pickles and onions on a bun. The WHOPPER is available in original, double and<br />
junior sizes. In 2005, Burger King introduced the Triple Whopper with Cheese. Breakfast signature items are the<br />
CROISSAN’WICH, a croissant filled with egg, cheese and a choice of bacon, sausage or ham and new biscuit sandwiches. In<br />
late 2005, Burger King launched the new Tendergrill sandwich nationwide. The Tendercrisp sandwich was updated in 2006<br />
with the introduction of the Tendercrisp Cheesy Bacon Sandwich—topped with American and Jack cheese slices. Burger King<br />
also launched a new coffee blend, available in regular, decaf and "Turbo," a double-caffeine blend. In 2007, Burger King<br />
added new menu items, including The Enourmous Omelet Sandwich, BK Stacker and Angus Steak Burger, Sides include<br />
fries, onion rings and Mott’s strawberry flavored applesauce. Beverages consist of soft drinks, juices and milk. A kids’ menu is<br />
available and features chicken tenders, hamburgers and cheeseburgers and a small fries. <strong>Menu</strong> prices range from $1–$5.59.<br />
Checks average $6.10.<br />
Expansion Plans |<br />
Brinker International signed a deal with Swisshelm Group to open three new Romano’s Macaroni Grill units in Springfield, MO,<br />
and Arkansas by 2010. These will be the first Romano’s locations in these markets. Swisshelm is also a Burger King<br />
franchisee. (NRN Daily NewsFax 12/14/06; Company Release 12/12/06)<br />
Promotion Plans |<br />
Burger King Corp. is lending its name to retailers for ice cream, snacks and other foods under an agreement with Broad Street<br />
Licensing Group. The agreement calls for the Burger King name and logo to be put on foods that aren’t sold in the chain’s<br />
restaurants. (NRN Daily NewFax 11/9/06)<br />
Burger King is promoting value meals for breakfast to boost its morning traffic. Also, the chain will promote late night service.<br />
(NRN Daily NewsFax 11/3/06)<br />
Burger King plans to halt its television commercials in the UK that are aimed toward children or are aired during children’s<br />
programming, effective December 22. (NRN Daily NewsFax 11/15/06)<br />
Burger King was asked by the Spanish government to pull a website promotion for its Double Cheese Bacon XXL burger. The<br />
ad violates an agreement that Burger King signed to refrain from promoting large portions. (NRN Daily NewsFax 11/18/06)<br />
Burger King Holdings Inc. is the first company to use a new service called Product Placement, to deliver advertisements to<br />
consumers who skip through commercials on their TiVo video recorders. The system places advertisements at the end of<br />
recorded programs, hoping that consumers would be more willing to watch commercials if they didn’t interrupt shows. (NRN<br />
Daily NewsFax 11/29/06)<br />
Burger King’s King character was featured in “milk moustache” ads that appeared in Rolling Stone and People en Español.<br />
(New York Times 1/04/07)<br />
Burger King Corp. has inked deals for Chub City toy cars and Groovy Girls soft dolls with Jada Toys Inc. and Manhattan Toy<br />
Co., respectively. The promotion was set to run through mid-March and was to be supported by outdoor advertising and inrestaurant<br />
merchandising such as tray liners as well as downloadable screensavers and computer wallpaper. The company<br />
expected to sell about 18 million toys in both domestic and international units. (The Wall Street Journal 3/06/07)<br />
Burger King announced Carol Linville as the winner of $1 million in the “Which Spidey Suits You” game promoting Spider-Man<br />
3. She won the prize after purchasing four plain hamburgers and two large drinks at a Burger King location in Bloomington, IN.<br />
Linville has chosen to receive her prize in cash installments of $50,000 annually for the next 20 years. (Company Release<br />
6/6/07)<br />
Burger King and Visa will offer customers a free meal with its promotion “Fastest Way to a Free Meal.” Customers can receive<br />
a free meal by using their Visa credit or check cards for purchases in domestic locations. For every 10 purchases made<br />
between June 1 and August 31, a statement credit will be issued for the price of a free meal (up to $7) on customers’ Visa card<br />
statement. (Company Release 6/11/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
100
Burger King is extending restaurant hours until midnight or later every day. An ad campaign promoting the new hours in U.S.<br />
and Canadian units will feature hip-hop musician Sean “Diddy” Combs. Burger King hopes longer hours will allow it to better<br />
compete with McDonald’s and Wendy’s, both of which offer late-night hours. (Yahoo! Finance 6/7/07; Restaurants &<br />
Institutions Online 6/7/07; NRN Daily NewsFax 6/6/07)<br />
Burger King Corp. is taking advantage of Halloween with a new super-sized version of its King mask and a full King costume.<br />
The mask is available for $24.99 and the small mask is available for $12.99. The deluxe King costume is priced at $69.99 and<br />
includes a robe, a gold medallion and mask. Burger King’s Subservient Chicken mask is priced at $4.50. The costumes are<br />
available online and through retailers, including Target, Spencer Gifts, Party City, Walgreen’s, Ricky’s NYC and Halloween<br />
Adventure. (NRN Daily NewsFax 10/5/07)<br />
<strong>Menu</strong> Development |<br />
Burger King Corp. plans to test trans fat-free items within 90 days. The decision was made after KFC announced it was<br />
planning on frying its chicken in oil without trans-fat in 5,500 of its restaurants by April 2007. (Cattlenetwork.com 10/30/06)<br />
Burger King has rolled out the Angus ’Shroom & Swiss Steak Burger. (Company Promo)<br />
Several chain restaurants are planning to reduce or eliminate trans-fats from their menus. Popeye’s Chicken & Biscuits will<br />
eliminate trans fats from its biscuits and introduce reduced transfat french fries by year’s end. Burger King will test a trans-fatfree<br />
frying oil sometime in the next 90 days. KFC will use a new soybean oil at its units in New York and Chicago, with plans to<br />
roll it out systemwide by spring 2007. IHOP plans to test trans-fat-free oils at its more than 1,200 units in the U.S. and Canada.<br />
Souper Salad restaurants are also planning to be trans fat free by year’s end. McDonald’s units in Australia have switched to a<br />
frying oil that is nearly free of trans fatty acids. The company did not say whether or not it would use the blend of canola and<br />
high-oleic sunflower oil at its U.S. locations. (Los Angeles Times 11/07/06; Company Release 11/07/06)<br />
Burger King is testing breakfast value-meal combos in select markets. (Nation’s Restaurant News 11/13/06 p4)<br />
Burger King added BK Joe on the Rocks, an iced coffee. (Nation’s Restaurant News Online 12/21/06)<br />
Burger King is testing two new desserts, Crown Cone ice cream cone and BK Storm, an ice cream-based treat. (Nation’s<br />
Restaurant News Online 12/21/06)<br />
Burger King added a Texas Double Whopper to the menu for a limited time. The item features two Whopper patties, two slices<br />
of American cheese, onions, mustard, pickles, crispy bacon, jalapeños, mayo, shredded lettuce and tomatoes, served on a<br />
bun. (Company Website)<br />
Burger King is testing BK Hold ’Ems, a new line of wraps. There are different options for different dayparts, including sausage,<br />
egg and cheese for breakfast and a chicken Caesar option for lunch. BK Hold ’Ems are available in a container that can fit into<br />
cup holders for diners on the go. (NRN Daily NewsFax 12/22/06; Nation’s Restaurant News Online 12/21/06)<br />
Burger King may be sued by the Center for Science in the Public Interest (CSPI) because the burger chain has yet to<br />
announce if it will eliminate or reduce trans fats from its menu. Burger King said that it has been working for the past two years<br />
to develop alternatives to trans fats. (Brandweek.com 1/08/07)<br />
Burger King plans to add a breakfast menu with 10 items priced at $1 each. The new menu will feature the Hamlette, a new<br />
ham, egg and cheese sandwich with honey butter served on a sesame-bun; Cheesy Tots, Cheddar and mozzarella cheeses<br />
wrapped in a potato crust and deep-fried; French Toast Sticks; a sausage patty on a biscuit; a small hash-brown patty; a small<br />
BK Joe coffee; orange juice; a 16-oz. soft drink; and a 10-oz. serving of milk. (Nation’s Restaurant News Online 1/19/07; NRN<br />
Daily NewsFax 1/22/07)<br />
Burger King plans to roll out trans-fat-free cooking oils nationwide by late 2008 and is currently testing trans-fat-free cooking<br />
oils in select restaurants. The chain intends to meet New York City’s trans-fat-free requirement, which will go into effect July 1.<br />
In other news, Burger King paid back $25 million in debt using cash from operations. The chain has already retired $125<br />
million in debt. (South Florida Business Journal 1/31/07; Reuters 1/31/07; Star Telegram 1/31/07; NRN Daily NewsFax<br />
2/01/07; Forbes.com 1/25/07)<br />
Burger King will purchase eggs from uncaged hens, as well as buy pork from pigs that are not raised in crates. The decision<br />
comes after the Humane Society of the United States and People for the Ethical Treatment of Animals (PETA) pressured the<br />
chain to make the switch. Initially, 10% of Burger King’s pork will come from more humanely raised hogs. By year’s end the<br />
chain expects 20% of its pork to be humanely raised. The chain will purchase 2% of its eggs from cage-free facilities and plans<br />
to increase that to 5% by January 2008. (NRN Daily NewsFax 3/29/07; Company Release 3/28/07; New York Times 3/28/07;<br />
AFX 3/28/07)<br />
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101
Burger King rolled out the Mocha BK Joe Iced Coffee to its BK Joe coffee line for a limited time. The item mixes chocolate<br />
syrup, coffee and ice. It is priced at $1.99 for a 22-oz. cup. (NRN Daily NewsFax; Company Release)<br />
Burger King is rolling out three new cold beverages. New offerings include Oreo BK Sundae Shake, paired with an oversized<br />
“BK Pipe Straw,” Sweet Mocha BK Joe Iced Coffee and a berry-flavored ICEE Float frozen drink. The drinks range in price<br />
from $1.40–$2.39, depending on the portion size. (NRN Daily NewsFax 5/01/07)<br />
Burger King is rolling out several new dessert treats, including Butterfinger Pie; a soft-serve ice-cream including a Warm<br />
Brownie Sundae; and a chocolate-dipped vanilla soft-serve cone. (NRN Daily NewsFax 5/01/07)<br />
Burger King recently introduced Spam as a breakfast item on its menu in Hawaii, competing with McDonald’s, who has been<br />
offering the item in Hawaii for years. Burger King introduced the Spam Platter, featuring two slices of Spam between white rice<br />
and scrambled eggs, in addition to the Biscuit Sandwich or Croissan’wich with Spam. The company was selling the Spam<br />
Platter for $3.49, while McDonald’s was selling the same item for $3.39 across the street. Spam is a favorite food in Hawaii.<br />
(Yahoo.com 6/11/07)<br />
Burger King Corp. announced that it has begun the rollout of a trans-fat-free cooking oil in its domestic units. The company<br />
plans to have every domestic location using the new oil by the end of 2008. If adequate supply becomes available, the rollout<br />
could be completed sooner. (Company Release 7/6/07)<br />
Burger King will introduce its Ultimate Double Whopper July 27. The burger features two quarter-pound beef patties with eight<br />
slices of bacon and four slices of American cheese. The item is available for a limited time and is priced at $3.59. (NRN Daily<br />
NewsFax 7/17/07)<br />
Burger King will offer potato chips beginning this fall in flavors such as Ketchup & Fries and Flame-Broiled Burger. The Flame-<br />
Broiled flavor has a smoky meat taste and the Ketchup & Fries flavor tastes like ketchup. Both are free of trans fats. In<br />
addition, the chain has licensed its brand to Inventure Group for a line of chips. Inventure Group manufactures and distributes<br />
snacks under many labels, including T.G.I. Friday’s. The chips will sell in stores for $1.29–$1.40 in 2-oz. packs and $2.29–<br />
$2.49 in 5-oz. packs. (Usatoday.com 7/27/07)<br />
Burger King debuted BBQ Bacon Tendercrisp, with chicken, bacon, BBQ sauce, lettuce and tomato, served on a warm bun.<br />
(Company Website)<br />
Burger King and Wendy’s locations in New York City failed the trans-fat test that determined if the chains were complying with<br />
New York law. The two companies are still serving customers fries with more trans fats than the city claims is safe to consume<br />
in a day. McDonald’s fries, however, are virtually trans fat-free. (Cspinet.com 8/2/07)<br />
Burger King is rolling out a healthier kids’ menu as part of its pledge to promote healthy diets to children under 12. The menu<br />
includes flame-broiled chicken tenders, organic unsweetened applesauce, lowfat milk and Apple Fries, skinless red apples cut<br />
to resemble french fries. By December 2008, Burger King will only advertise Kids Meals that contain no more than 560 calories<br />
per meal and less than 30% of calories from fat, less than 10% of calories from saturated fat and no added trans fats. The<br />
menu will be tested this fall at select locations and will be offered nationally next year. (USA Today Online 9/11/07; Nation’s<br />
Restaurant News Online 9/12/07)<br />
Burger King debuted its Spicy Chick’N Crisp sandwich for $1. The crispy chicken filet is topped with iceberg lettuce and<br />
mayonnaise. (Company Website)<br />
Burger King rolled out two “homestyle” melt sandwiches served on sourdough bread as a limited-time promotion. The melts<br />
include the breakfast Honey Butter Homestyle Melt with sausage, egg, honey butter sauce and melted American cheese, and<br />
the Bacon Double Homestyle Melt, with four slices of bacon, three slices of melted Swiss cheese and two hamburger patties<br />
covered with a garlic-cheese sauce. The promotion is being advertised with a series of TV ads featuring four moms who are<br />
angry at the King for offering the same melted sandwiches that they usually make for children. (Nation’s Restaurant News<br />
11/5/07)<br />
Franchise Activity |<br />
Burger King franchisee Strategic Restaurant Acquisitions Corp. (SRAC) purchased an unspecified stake in Bear Rock Café.<br />
Cary, NC-based Bear Rock operates 33 units in 11 states. SRAC franchises 250 Burger King outlets. (NRN Daily NewsFax<br />
11/29/06)<br />
Burger King franchises in Minnesota, owned by Nath Cos. Inc., has been sold to a New York investment firm. Cost for the 88<br />
units was not disclosed. (Bizjournals.com 1/1/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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102
Burger King franchisee Heartland Food Corp. sold over 240 restaurants to GSO Partners in a deal worth approximately $155<br />
million. Heartland operated franchises in Illinois, Michigan, Indiana, Wisconsin, North Carolina and Florida. In related news,<br />
franchisee Nath Cos. Inc. of Minnesota sold 88 of its 89 Burger King outlets to Kinderhook Industries LLC of New York. Nath<br />
Cos.’s restaurants were located in the Twin Cities market as well as Florida, Illinois, Iowa and Wisconsin. Terms of the<br />
agreement were not disclosed. (The Miami Herald 12/27/06; Minneapolis/St. Paul Business Journal 12/29/06; NRN Daily<br />
NewsFax 12/28/06)<br />
Burger King franchisee Duke and King Acquisition Corp. purchased 24 Burger King restaurants from Swisshelm Group. The<br />
acquisition boosted the franchisee’s system to 112 outlets. (NRN Daily NewsFax 3/20/07)<br />
A Burger King franchisee is suing a landlord for failing to keep rats out of the franchisee’s restaurant in New York. The<br />
restaurant closed the day after it was featured on the television program “Inside Edition.” (NRN Daily NewsFax 3/29/07)<br />
Burger King franchisee Duke and King Acquisition Corp. acquired 24 outlets from Swisshelm Group in Springfield, MO, for an<br />
estimated $15–$20 million. This brings the total number of outlets owned by Duke and King to 112. Duke and King operates<br />
restaurants in Minnesota, Illinois, Iowa, Wisconsin, Florida, Missouri, Arkansas and Kansas. (NRN Daily NewsFax 3/20/07)<br />
International Activities |<br />
Burger King’s UK system will discontinue TV advertisements aimed at children and the placement of commercials in all<br />
children’s programs by mid-December. The changes were made in response to the UK’s critics of fast-food advertising and as<br />
a preemptive step in the face of impending stricter regulation. The country’s equivalent to the U.S. Federal Communications<br />
Commission is reportedly meeting to consider a ban on all fast-food advertising broadcast before 9 p.m. (NRN Daily NewsFax<br />
11/15/06)<br />
Burger King Corp. plans to venture into Japan. The company’s first unit is slated to open in Tokyo in early 2007. (Company<br />
Release 12/15/06)<br />
Burger King has been asked to pull an ad campaign in Spain after Spain’s Health Ministry said it violated a Spanish initiative<br />
against obesity. The TV ad features the chain’s Double-Cheese Bacon XXL burger with the slogan, “It’s awful being a<br />
vegetarian, right?” The ministry believes the ad goes against a federal agreement signed by the Spanish Federation of<br />
Hoteliers and Restaurants, a group to which Burger King belongs. Members of the group had agreed that they would abstain<br />
from promoting large portions of food in advertisements. Burger King said that it has no plans to halt the campaign.<br />
(International Herald Tribune 11/16/06)<br />
Burger King inked an agreement with Burger King Japan Co. Ltd. to open the chain’s first restaurants in Japan. BKJ is a<br />
partnership between Tokyo-based Lotte Co. Ltd. And Japanese company Revamp Corp. The group expects to open its first<br />
unit in Tokyo early next year. (NRN Daily NewsFax 12/18/06; Company Release 12/15/06; GlobeSt.com 12/15/06)<br />
Burger King’s UK sales are down by at least 10% due to the cessation of advertising to children. The company had previously<br />
claimed that the impact would be minimal and that its target consumer group has always been people 18–34 years old. (NRN<br />
Daily NewsFax 12/28/06)<br />
Burger King Holdings Inc.’s subsidiary BK AsiaPac Pte Ltd. inked a deal with PT Sari Burger Indonesia open outlets in<br />
Indonesia. The first unit is slated to open in Jakarta by June. (Company Release 1/04/07)<br />
Burger King plans to develop restaurants in Poland. The first Burger King to be built in Poland is slated to open in the second<br />
quarter of 2007 and will be located in Zlote Tarasy, Warsaw’s new mall. Additional unit openings are scheduled during the next<br />
five years. (Company Release 3/12/07)<br />
Burger King signed an agreement with AmRest Holdings N.V. for the first Burger King outlet in Poland. The unit is slated to<br />
open in Warsaw later this year. AmRest is a Poland-based franchisee of KFC and Pizza Hut. (AFX International Focus<br />
3/12/07; NRN Daily NewsFax 3/14/07; Foodservice Equipment & Supplies 3/14/07)<br />
Burger King Holdings Corp. awarded North Asia Strategic Holdings Limited the rights to develop outlets in Hong Kong and<br />
Macau. The first unit will debut in downtown Hong Kong by December 2007. In other news, the chain inked a deal with Hana<br />
International Company Limited to open Burger King units in Egypt and other North African countries. The first Burger King<br />
restaurant will open in the first half of 2007 at a mall in Cairo. Two more outlets will follow later this year. (Company Release<br />
3/23/07; Company Release 3/29/07; Forbes.com 3/29/07)<br />
Burger King signed a development agreement with Hana International Company Limited to build the Burger King brand in<br />
Egypt and other North African countries. The first restaurant will open in the first half of 2007 in the City Stars mall in Cairo.<br />
Financial details were not disclosed. (Company Release 3/29/07)<br />
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103
Burger King introduced the Limo Cheeseburger on April 4 in the United Arab Emirates. It is the nation’s first “long” burger,<br />
featuring three beef patties covered in cheese. The item is available for a limited time. (albawaba.com 4/12/07)<br />
Burger King Holdings Inc. plans to open as many as 250 new stores in Asia in the next five years. Burger King currently has<br />
700 units across the Asia-Pacific region, including four in Hong Kong and nine in China, with 90% of the units franchised.<br />
(Qsrweb.com 6/8/07)<br />
Burger King plans to return to the Japanese market after being away for six years. The company opened a unit in Shinjuku<br />
Ward, Tokyo, on June 8 and a second outlet is scheduled to open in Ikebukuro, Toshima Ward, on June 22. Six more will be<br />
added in and around the capital by the end of next March. (Japantimes.co.jp 6/7/07)<br />
Burger King will expand its units in China to 300 in five years from its current 12. The company is planning aggressive growth<br />
in the area to better compete with McDonald’s and KFC. (Forbes.com 6/10/07)<br />
Burger King projects that 80% of its future growth will come from international expansion. The fast-service chain’s worldwide<br />
net-growth goal is to add between 300 and 400 units annually, with restaurant sales averaging $1.5 million. Europe, the Middle<br />
East and Latin America are the current international targets, although Burger King also plans to begin opening units in Asia in<br />
the next few years. Burger King has 11,200 restaurants in the U.S. and 65 countries and U.S. territories worldwide.<br />
Approximately 90% of the company’s restaurants are franchised. (Nation’s Restaurant News Online 7/11/07)<br />
Technology |<br />
Burger King launched an interactive website encouraging people to be “Simpsonized” in preparation for the release of “The<br />
Simpsons Movie,” opening July 27. The site allows people to alter digital photos of themselves to yellow, Simpson-like<br />
characters and customize them with body types, hairstyles and accessories. In addition, the chain plans to sponsor a traveling<br />
“Simpsonizer” photo booth in July and August that allows participants to step into a photo booth and print their transformed<br />
photo, send it to a mobile phone or send it as an e-card. (Bizjournals.com 7/16/07)<br />
Burger King Corp. teamed with Seattle-based mobile content provider Mobliss Inc. to create downloadable games on cell<br />
phones featuring Burger King-branded content. The first game will feature players competing for the role of the King’s protégé<br />
by facing challenges and progressing in a Burger King-themed city. Advanced levels can be unlocked where participants face<br />
more difficult challenges. Burger King plans to promote the game through in-store packaging and signage. The games will be<br />
available for purchase through Sprint, AT&T, U.S. Cellular, Verizon, Alltel and T-Mobile in the spring of 2008. (Company<br />
Release 10/5/07)<br />
Personnel |<br />
Dave Gagnon, S.V.P. of Operations<br />
John Chidsey, CEO<br />
Ben Wells, CFO<br />
Russ Klein, CMO<br />
Burger King Corp. promoted Mike Kappitt to Senior Vice President of Global Business Intelligence and Strategy; Jonathan<br />
Fitzpatrick to Senior Vice President of Development and Franchising; John Reckert to Senior Vice President of Global<br />
Operations Research and Development; and Chris Anderson to Senior Vice President of Finance. Previously, Kappitt served<br />
as Vice President of Consumer Insights and Performance Analysis for the company; Fitzpatrick previously served as Vice<br />
President of Information Technology; Reckert most recently was responsible for the rollout of new kitchen technology; and<br />
Anderson’s responsibilities have expanded to include oversight of risk management, credit and collections, and franchise<br />
finance. (Company Release 7/25/07)<br />
Burger King Holdings Inc. promoted Julio Ramirez to executive vice president of global operations. Previously, Ramirez served<br />
as president of Burger King’s Latin America division. (Nation’s Restaurant News 10/9/07)<br />
Burger King Corp. appointed Armando Jacomino as president of the Latin America region on November 6. Jacomino, who<br />
started with Burger King as a crew member in Miami in 1970, most recently served as vice president of operations, training<br />
and Mexico development for the Latin American region. He replaces Julio Ramirez, who was promoted to executive vice<br />
president of global operations. (QSRmagazine.com 11/06/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
104
News & Other |<br />
Burger King reported for the first quarter net earnings 82% to $40 million from $22 million for the same period last year.<br />
Revenues rose 7% to $546 million from $508 million. Same-store sales grew 2.6%. (Company Release 11/1/06)<br />
Burger King Holdings Inc. reported for the first quarter ended September 30 net earnings increased 81.8% to $40 million from<br />
$22 million for the same period last year. Revenues grew 7.5% to $546 million. Same-store sales rose 2.4%. (NRN Daily<br />
NewsFax 11/2/06)<br />
Burger King is licensing its name for use on products such as snacks, confections, ice cream and desserts to be sold in<br />
supermarkets, club stores, c-stores and select vending machines. The burger chain is working with Broad Street Licensing<br />
Group to handle the deal. A rollout date has not been announced. (Progressive Grocer 11/07/06; NRN Daily NewsFax<br />
11/09/06)<br />
Trans fats will be reduced or eliminated from some menu items at several chain restaurants. Popeye’s Chicken & Biscuits is<br />
eliminating trans fats from its biscuits and will introduce reducedtrans-fat french fries by year’s end. Burger King will test a<br />
trans-fat-free frying oil within the next 90 days. IHOP is also testing a trans-fat-free oil at its restaurants in the U.S. and<br />
Canada. KFC is using a trans-fat-free soybean oil at its units in New York and Chicago and will roll it out systemwide by spring<br />
of 2007. Souper Salad plans to be trans-fat-free by early December. McDonald’s units in Australia have switched to a frying oil<br />
that is nearly free of trans fatty acids. McDonald’s European units will cut the level of trans fats in frying oil to 2% by 2008.<br />
McDonald’s will use a blend of canola oil and high oleic sunflower oil at these locations. The company did not say whether or<br />
not it would roll out the oil to its U.S. locations. (Los Angeles Times 11/07/06; Reuters 11/07/06; NRN Daily NRN Daily<br />
NewsFax 11/01/06, 11/08/06, 11/10/06)<br />
Britain has banned in some instances the advertising of food and beverages containing high levels of fat, sugar or salt to<br />
children. The country will not allow advertising for so-called junk food to be shown during children’s TV shows or adult<br />
programs that attract a larger than average proportion of viewers younger than 16. The ban will be phased in during the first<br />
half of 2007. Burger King had decided before the ban went into effect to halt advertising during children’s programs in the U.K.<br />
KFC said that it plans to stop using promotional toys to sell children’s meals in that country. (NRN Daily NewsFax 11/18/06)<br />
Burger King Holdings Inc. reported for the second quarter net earnings increased 41% to $38 million from $27 million for the<br />
same period last year. Revenues grew 9% to $559 million from $512 million. Same-store sales rose 3.7%. (Company Release<br />
1/30/07)<br />
Burger King refused a request from the Coalition of Immokalee Workers to pay a penny-perpound surcharge on tomatoes. The<br />
surcharge is used to fund a welfare program for Florida tomato workers. Taco Bell's parent company Yum! Brands was<br />
convinced in 2005 by the Coalition of Immokalee Workers to pay the surcharge. The chain said that it had met with CIW<br />
representatives and also visited Immokalee, FL, to see firsthand the conditions of the farmworkers. Burger King agreed that<br />
the conditions are substandard but does not believe that the penny-per-pound surcharge would guarantee direct support for<br />
the workers. Burger King has offered to send company recruiters to talk with farm workers about employment in the chain's<br />
restaurants. (Nation’s Restaurant News Online 2/06/07; NRN Daily NewsFax 2/06/07)<br />
Burger King reported for the fourth quarter same-store sales increased 7.9%. For the year, same-store sales rose 4.2%.<br />
(Company Release 3/1/07)<br />
Burger King is the next target of the Coalition of Immokalee Workers (CIW). The group works to have restaurant chains<br />
subsidize better pay and demand better working conditions for Florida farm laborers. Burger King said earlier this year that it<br />
would not pay the penny-per-pound tomato surcharge demanded by CIW. The company said it does not buy its tomatoes from<br />
suppliers that have violated labor laws. CIW recently signed an agreement with McDonald’s Corp. for the chain to pay an<br />
additional penny per pound for tomatoes purchased for its restaurants. (NRN Daily NewsFax 4/16/07; Chicago Tribune<br />
4/13/07)<br />
Burger King reported that its third-quarter net income totaled $34 million compared to a $12 million loss last year and that<br />
corporate revenues increased 9% to $539 million. The chain plans to extend its U.S. late-night hours, which will keep its<br />
restaurants open until midnight. Burger King said that its fourth-quarter same-store sales will be driven by this initiative.<br />
(Nation’s Restaurant News Online 4/27/07)<br />
Burger King is being sued by the Center for Science in the Public Interest (CSPI) for not committing to the elimination of trans<br />
fats from its menus. CSPI claims that the chain is selling foods prepared with partially hydrogenated oils without warning<br />
customers about health risks. Burger King said that the chain plans to introduce a trans-fat-free oil later this year if the oil that it<br />
is currently testing in select units proves to be successful. If not, the company said that a more specialized oil would push the<br />
rollout to 2008. (NRN Daily NewsFax 5/17/07; CNNMoney.com 5/16/07; Forbes.com 5/16/07; Nation’s Restaurant News<br />
Online 5/16/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
105
Burger King’s Chief Operation Officer James F. Hyatt II sold 26,700 shares of common stock on May 29 for $24.14 to $24.24<br />
apiece after he exercised the options for $3.80 apiece. (Associated Press 5/31/07)<br />
Burger King, in an effort to compete with McDonald’s, is extending its hours so all Burger King locations will be open until at<br />
least midnight. The company has ordered all franchisees to meet a May 10 deadline for extending the hours. In addition to the<br />
extended hours, Burger King will continue a rollout of labor-saving batch broilers at a rate of nine per day and will implement<br />
new marketing and menu strategies, such as a rollout of new wrap sandwiches, which are being test marketed as “Hold ’Ems.”<br />
(Nation’s Restaurant News 5/7/07 p6)<br />
Burger King Corp. director Manuel a Garcia sold 9,562 shares of common stock. The shares were sold on June 1 for $17<br />
apiece. (Associated Press 6/6/07)<br />
Jack in the Box is being sued by CKE Restaurants for deceptive advertising involving its Carl’s Jr. and Hardee’s, as well as<br />
McDonald’s and Burger King. The complaint states that Jack in the Box advertisements imply competitors use cow anus to<br />
make Angus burgers. CKE seeks a court ruling blocking the ads. (MSNBC.com 5/29/07; NRN Daily NewsFax 5/29/07)<br />
Burger King—along with a number of national quick-service chains, including McDonald’s and Wendy’s—is refusing to comply<br />
with a New York City ordinance that requires certain fast-food restaurants to post calorie content information on menu boards.<br />
The new rule states that fast-food operators must list calorie values next to menu items in type that is as large as the price of<br />
the item. Burger King and its counterparts contend that the rule unfairly singles out quick-service restaurant companies that<br />
already voluntarily offer nutritional information. (Yahoo! News 6/26/07)<br />
Burger King Director Kneeland Youngblood sold 9,000 shares of common stock under a prearranged trading plan for $25.50<br />
apiece on July 16. (Associated Press 7/17/07)<br />
HMSHost, a world leader in travel dining and shopping, opened four popular restaurants at the Nashville International Airport<br />
with Transfare Inc. The two companies opened Baja Burrito, Burger King, Famous Famiglia Pizzeria and Quiznos Subs in the<br />
C Concourse food court. The four restaurants are part of HMSHost’s concession development program, an 11-year contract to<br />
develop new food and beverage venues. (Sys-con.com 8/14/07)<br />
Burger King reported for the fourth quarter ended June 30, net earnings increased to $36 million compared to a loss of $10<br />
million for the same period last year. Revenues increased 11% to $590.0 million from $533.0 million. Same-store sales rose<br />
4.4% worldwide. For the year, net earnings grew to $148 million from $27 million for the year before. Revenues rose 9% to<br />
$2.2 billion from $2.0 billion. Same-store sales increased 6%. (Company Release 8/24/07)<br />
Burger King Holdings Inc., CEC Entertainment Inc., McDonald’s Corp., Wendy’s International Inc. and Yum! Brands Inc. have<br />
been issued subpoenas by the Federal Trade Commission to disclose their marketing activities and expenditures targeting<br />
children and adolescents. The subpoenas were issued in response to a Congressional mandate to investigate how food<br />
marketers target children. The restaurant companies must submit documented information on their marketing practices by<br />
November 1, 2007. (NRN Daily NewsFax 8/13/07)<br />
Nashville International Airport has opened four restaurants in phase one of a three-part concession development program.<br />
HMSHost Corp. has an 11-year contract to develop new food and beverage venues for the airport. Baja Burrito, Famous<br />
Famiglia Pizzeria, Quiznos Subs and Burger King are the first restaurants to open in the C Concourse Food Court. They will<br />
be followed by two Starbucks Coffee units, Noshville Delicatessen, Jack Daniel’s Tennessee Tavern, Neely’s Barbeque,<br />
Gibson’s Guitar Café and Provence Breads & Café. HMSHost operates in more than 100 airports worldwide. (PR Newswire<br />
Online 8/14/07)<br />
Burger King Holdings Inc. declared a quarterly dividend of $0.0625 per share of common stock. Shareholders of record at the<br />
close of business on September 14 will be paid on September 28. (Company Release 8/29/07)<br />
Burger King reported for the fourth quarter ended June 30 a profit of $36 million compared to a net loss of $10 million for the<br />
same period last year. Revenues increased 11% to $590 million from $533 million. Systemwide same-store sales rose 4.4%.<br />
For the year, net earnings rose $148 million from $27 million last year. Revenues grew 9% to $2.23 billion from $2.05 billion.<br />
Systemwide same-store sales increased 3.4%. (Qsrmagazine.com 8/24/07)<br />
Burger King director Peter R. Formanek sold 23,000 shares of common stock for $23.75–$23.86 per share on August 31 and<br />
September 4. (Associated Press 9/6/07)<br />
Burger King Holdings Inc. will use the “strong and consistent cash flow” it says it expects in fiscal 2008 to fund share<br />
repurchases, a shareholder dividend and debt repayment. The company said that the cash flow will allow for the development<br />
and remodeling of corporate restaurants. (Nation’s Restaurant News 9/10/07)<br />
Burger King is testing a new broiler designed to save time, money and energy. It will also allow the company to include menu<br />
items such as ribeye steak sandwiches and shrimp kebabs. (Cnnmoney.com 10/12/07)<br />
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106
Burger King Holdings Inc. Director Kneeland Youngblood sold 9,000 shares of common stock under a prearranged trading<br />
plan. Youngblood sold the shares October 17 for $26.07 per share. (Associated Press 10/17/07)<br />
Burger King has reported a boost in profit in its fiscal first quarter ended September 30. The company said it earned $49<br />
million over the period, up from $40 million in the same period a year ago. Movie tie-ins including “The Simpson’s Movie” and<br />
“Transformers” were credited for the upsurge. (Marketwatch.com 11/05/07)<br />
Burger King Holdings Inc. announced that three private-equity shareholders would sell 18 million shares of the company’s<br />
common stock in a secondary offering priced at $25 per share. The selling shareholders — funds controlled by TPG Capital,<br />
Bain Capital Partners and the Goldman Sachs Funds, which together are majority owners of Burger King — will also offer to<br />
the underwriters of the offering an option to purchase up to an additional 2.7 million shares. When this offering was first<br />
announced, Burger King had said the firms planned to offer 23 million shares, with an over-allotment option of up to 3.45<br />
million units. That number of shares originally slated for sale represented between 29% and 33.5% of the group’s 79 million<br />
shares, or a 58% holding in Burger King. Now, the shares slated for sale represent between 23% and 26% of the firms’ stake.<br />
The secondary offer could gross the private-equity firms $517.5 million. Burger King is not receiving any proceeds from the<br />
sale. After completion of the deal, the selling shareholders will have reduced their ownership stake in Burger King to between<br />
45% and 43%. (NRN Daily NewsFax 11/15/07)<br />
Burger King is planning to test a re-priced $1 double cheeseburger in at least three markets. The burger is currently priced<br />
near $2. Burger King’s version is slightly larger than the double cheeseburger found on McDonald’s Dollar <strong>Menu</strong>. Some Burger<br />
King stores in Los Angeles have already started selling the burger for 99 cents. (NRN.com 11/20/07)<br />
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107
California Pizza Kitchen<br />
Headquarters<br />
6053 W. Century Blvd. Suite 1100, Los Angeles, California 90045 USA<br />
Tel: (310)342-5000 Fax: (310)342-4743<br />
www.cpk.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
Chain Brands<br />
CPK ASAP<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 543,200 478,100 478,799<br />
Company-owned ($000) 540,000 475,000 418,799<br />
Franchised ($000) 3,200 3,100 60,000<br />
U.S. Number of Units 168 154 161<br />
Company-owned 167 153 141<br />
Franchised 1 1 20<br />
International Sales ($000) 26,000 23,000 20,000<br />
International Units 14 11 10<br />
Average Sales/Unit ($000) 3,400 3,192 3,047<br />
Concept Positioning |<br />
California Pizza Kitchen is a full-service chain that offers gourmet pizzas and distinctive pastas. The public chain operates 210<br />
California Pizza Kitchen locations restaurants in 29 states and seven foreign countries, only one of which is franchised. It also<br />
operates 28 units of its CPK/ASAP fast-casual format and one unit of LA Food Show.<br />
Units are located in affluent neighborhoods and range in size from 2,800–5,000 sq. ft , The chain also operates within<br />
shopping malls. All units are somewhat different from an architectural standpoint, but have a common ambiance—a warm,<br />
cheerful, casual setting dominated by an open kitchen, all of this adding up to a more sophisticated feeling to the décor than<br />
found at traditional pizza restaurants. New units feature lighter woods and colorful pizza-box art on the walls. CPK has also<br />
developed a fast-casual concept called CPK/ASAP. These CPK/ASAP restaurants are significantly smaller than full-service<br />
restaurants and offer a limited selection of only the most popular pizzas, salads, sandwiches and appetizers.<br />
Created by Larry Flax and Rick Rosenfield, attorneys-turned-restaurateurs, the first unit opened in Beverly Hills, CA, in 1985.<br />
In 1992, PepsiCo, Inc. purchased a substantial equity interest in the operation, but in 1997 PepsiCo exited the restaurant<br />
business by selling all its restaurant holdings, including its 67.5% equity position in California Pizza Kitchen. The equity stake<br />
was acquired by Bruckmann, Rosser, Sherrill & Co., a New York investment firm. The deal was completed in September 1997.<br />
In 2000, the company completed its initial public offering. In 2003, California Pizza Kitchen paid $3 million for a 25% stake in<br />
LA Food Show, a single-unit casual-dining concept, and in 2006 it acquired the restaurant for $6 million. LA Food Show was<br />
developed by CPK's founders and serves as an R&D center for CPK's menu. The company believes LA Food Show will<br />
emerge as a second growth vehicle, and a second location is scheduled to open in Beverly Hills in early 2008. In 2006,<br />
California Pizza Kitchen entered a franchising agreement with WDI Japan to open 15 locations across Japan. Its first<br />
Japanese location debuted in a major Tokyo shopping center in September 2006. Additional franchising agreements are<br />
allowing the chain to expand in other Asian markets, including Hong Kong. California Pizza Kitchen also has a strategic<br />
alliance with Kraft Pizza Company, a subsidiary of Kraft Foods Inc., to distribute a line of premium frozen pizzas through<br />
supermarkets and other retail outlets.<br />
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<strong>Menu</strong> Positioning |<br />
California Pizza Kitchen is open for lunch and dinner, featuring appetizers, soups, salads, pizzas, pastas, focaccia<br />
sandwiches, desserts and beverages. The chain's signature item are its thin-crust, individual-sized pizzas with variety of<br />
toppings. Offerings include Original BBQ Chicken (its bestseller), Original Thai Chicken, Carne Asada, Grilled Garlic Shrimp,<br />
Rosemary Chicken-Potato, BLT, Vegetarian, Jamaican Jerk Chicken, Tandoori Chicken, Mushroom Pepperoni Sausage,<br />
Pepperoni Pomodoro, Greek, and Quattro Formaggi (four-cheese). The menu also features appetizers, such as Lettuce Wraps<br />
and Hawaiian Poke Martini; creative salads, such as Waldorf Chicken Salad, Grilled Vegetable Salad and Thai Crunch Salad;,<br />
pasta,,such as Chicken-Tequila Fettuccine, Grilled Sausage & Pepper Penne and Thai Curry Noodles; and desserts. CPK also<br />
offers a breakfast line at its ASAP locations. Breakfast selections include Warm Apple Pie Pizza, Florentine Pizza and<br />
Applewood-Smoked Bacon & Italian Sausage Pizza. Full liquor service is available in most locations. <strong>Menu</strong> prices range from<br />
$4.79-$15.49. Checks average $12.<br />
Expansion Plans |<br />
California Pizza Kitchen Inc. opened its first Wisconsin restaurant on November 7. The new unit is located in the Bayshore<br />
Town Center and will offer curbside service. It will also serve all of the restaurants favorites including five new menu items:<br />
Chicken Marsala, Chicken Milanese, Mango Tandoori Chicken Pizza, Chicken Piccata and the Steakhouse Chopped Salad.<br />
(Company Release 11/7/06)<br />
California Pizza Kitchen opened a new restaurant in Vista, CA, on November 14. The unit is located on the corner of West<br />
Vista Way and Vista Village Drive. (Company Release 11/14/06)<br />
California Pizza Kitchen Inc. opened its seventh San Diego location on November 27. The unit is located at the Otay Ranch<br />
Town Center in Chula Vista. (Company Release 11/27/06)<br />
California Pizza Kitchen Inc. opened its second Florida location in Coconut Point in Estero. The unit opened on December 4.<br />
(Company Release 12/4/06)<br />
California Pizza Kitchen opened its fourth Hawaii location in Waikiki on December 11. The restaurant offers a full bar and its<br />
traditional menu. (Company Release 12/11/06)<br />
California Pizza Kitchen opened an ASAP restaurant in Sherman Oaks, CA, on December 23. The new unit is located in the<br />
Fashion Square Mall. (Company Release 12/23/06)<br />
California Pizza Kitchen is opening its first ASAP outlet in Hawaii. The restaurant was slated to open in mid-January at the<br />
Kailua Town Center on Oahu and its menu will be similar to those of the chain’s four full-service outlets in Oahu but with a<br />
smaller assortment of pizza choices, a 14-in. diameter pizza not found in full-service locations, and expanded lines of<br />
sandwiches and soups. CPK currently has 24 ASAP units nationwide, some franchised and some company-owned<br />
(HonoluluAdvertiser.com 12/21/06)<br />
California Pizza Kitchen opened its second ASAP concept restaurant in Anaheim, CA, on January 22. The unit is located in the<br />
Stadium Towers. (Company Release 1/22/07)<br />
California Pizza Kitchen opened its first ASAP location in Hawaii on January 29. The unit is located in the Kailua Town Center.<br />
(Company Release 1/29/07)<br />
California Pizza Kitchen opened a new unit in San Francisco on March 12. The location will offer all of the chain’s menu items,<br />
including five new dishes: Chicken Milanese, Mango Tandoori Chicken Pizza, Chicken Marsala, Chicken Piccata and<br />
Steakhouse Chopped Salad. (Company Release 3/12/07).<br />
California Pizza Kitchen opened its second Austin, TX, location on March 19. The restaurant is located next to Macy’s at the<br />
Domain Shopping Plaza. (Company Release 3/19/07)<br />
California Pizza Kitchen plans to open 16–18 new full-service corporate outlets in 2007. The company also expects to open<br />
four franchised locations, four new CPK ASAP restaurants and one new LA Food Show outlet. (Company Release 2/15/07)<br />
California Pizza Kitchen opened a new restaurant in Coral Gables, FL, on April 2. The unit is located on Miracle Mile.<br />
(Company Release 4/2/07)<br />
California Pizza Kitchen opened a new unit in midtown Manhattan on May 15. The restaurant is located on Park Avenue and<br />
offers all of California Pizza Kitchen’s traditional menu items and a full bar with a wide selection of wines and more than 40<br />
specialty drinks. (Company Release 5/15/07)<br />
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California Pizza Kitchen Inc. opened its third Minnesota restaurant in Roseville on August 6. The unit is located at The Plaza at<br />
Rosedale Center. (Company Release 8/6/07)<br />
California Pizza Kitchen opened its third Lake Grove, NY, unit on August 20. The unit is located at Smith Haven Mall.<br />
(Company Release 8/20/07)<br />
California Pizza Kitchen opened its first Nashville, TN, location on September 1. The unit is located in the Hill Center in Green<br />
Hills. (Daily Business News 8/31/07)<br />
California Pizza Kitchen opened its first restaurant in Macomb County in Clinton Township, MI, part of the Detroit metro area,<br />
on October 18. The restaurant is located at The Mall at Partridge Creek and marks the fifth California Pizza Kitchen location in<br />
Michigan. (Company Release 10/18/07)<br />
Promotion Plans |<br />
California Pizza Kitchen signed a renewal contract as the exclusive pizza supplier for the Los Angeles Dodgers. The company<br />
will sell its Pepperoni, Cheese and Original BBQ Chicken pizzas at Dodger Stadium for three years. (Company Release<br />
3/30/07)<br />
California Pizza Kitchen has announced a two-year partnership with Staples Center in Los Angeles and the Los Angeles Kings<br />
hockey team. As part of the agreement, California Pizza Kitchen will have two dedicated refreshment stands at the Staples<br />
Center sports arena and will be the official sponsor of the Kings. (Company Release 11/16/07)<br />
<strong>Menu</strong> Development |<br />
California Pizza Kitchen expanded its menu with the addition of new items. They include three new chicken specialties:<br />
Chicken Piccata in a creamy lemon-caper sauce with spaghettini pasta; Chicken Marsala with fresh mushrooms and grilled<br />
asparagus in a Marsala wine sauce with linguini fini pasta; and Chicken Milanese, chicken breasts pounded thin and coated<br />
with arugula, tomatoes, basil, garlic and Parmesan cheese. A new pizza offering includes the Mango Tandoori Chicken Pizza,<br />
with grilled tandoori chicken, fresh mangoes, mild onions, red peppers and mozzarella cheese with a spicy golden curry sauce,<br />
topped with a sweet mango chili sauce. The chain debuted the Steakhouse Chopped Salad, prepared with chopped iceberg<br />
and romaine lettuce, Gorgonzola cheese, jicama, red onions, diced tomatoes and basil. CPK also added several new<br />
cocktails, including Pomegranate Margaritas, Pomegranate Martinis, Appleberry Sangria, Passionfruit Mojitos, Raspberry<br />
Margaritas, Top Shelf Margaritas, Classic Martinis and the Sun Splash, with Ketel One Citron Vodka, Hiram Walker<br />
Pomegranate Schnapps, fresh lemonade and a splash of club soda. (BusinessWire 11/29/06; Nation’s Restaurant News<br />
11/13/06 p74)<br />
California Pizza Kitchen introduced several new menu items, including Pan Sautéed Salmon, Atlantic salmon seasoned, pan<br />
sautéed and paired with grilled asparagus and spaghettini in a creamy lemon-caper sauce; Cajun Pizza, blackened chicken<br />
and Andouille sausage with a Creole sauce, roasted red and yellow peppers, mild onions and mozzarella cheese, topped with<br />
green onions; The Works Pizza, with sweet Italian sausage, pepperoni, sautéed mushrooms, mozzarella cheese, mild onions,<br />
green peppers, black olives and tomato sauce; Mediterranean Salad, consisting of cucumbers, red onions, fresh tomatoes,<br />
Greek olives, romaine lettuce and lemon-herb vinaigrette served over a bed of hummus and topped with feta cheese, sundried<br />
tomatoes and tzatziki sauce with pita bread (guests can add grilled rosemary chicken breast, sautéed shrimp or grilled<br />
shrimp); and White Chocolate Peanut Butter Cheesecake with a layer of peanut butter, shaved white chocolate and whipped<br />
cream. (Company Website)<br />
International Activities |<br />
California Pizza Kitchen entered into an agreement with Grupo Calpik, S.A. de C.V. to open franchises in Mexico. Grupo<br />
Calpik will open a minimum of 15 units within the next 10 years. The first unit to be opened is in the Bosques de las Lomas<br />
area in Mexico City in the fall of 2007. (Company Release 2/15/07)<br />
California Pizza Kitchen opened its second location in Japan on March 13. The unit is located at the Lalaport Yokohama<br />
shopping center and features an open-exhibition kitchen where guests can watch as the food is prepared. (Company Release<br />
3/13/07)<br />
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California Pizza Kitchen inked a deal with Grupo Calpik to open 15 locations in Mexico over the next 10 years. The first unit is<br />
slated to debut in Mexico City this fall. In related news, the company also planned to open an outlet in Japan in the first quarter<br />
of fiscal 2007 and has submitted a letter of intent to open stores in South Korea. (Foodservice Equipment & Supplies 2/21/07;<br />
Company Release 2/15/07)<br />
California Pizza Kitchen opened its fourth Hong Kong location on June 7. The new unit is located at The MegaBox shopping<br />
center. The unit is decorated in warm colors and rich textures and includes an open exhibition kitchen. (Company Release<br />
6/7/07)<br />
California Pizza Kitchen, a 215-unit chain, opened its first location in Mexico on August 14 in the Parque Duraznos mall in the<br />
Bosques de Las Lomas neighborhood in Mexico City. (Company Release 8/14/07)<br />
California Pizza Kitchen opened its first location in South Korea with franchisee Iris Co. Ltd. The new restaurant is tri-level and<br />
seats approximately 200. Its décor features warm colors, rich textures and an open exhibition kitchen where guests can watch<br />
the dishes being prepared. California Pizza Kitchen has 224 restaurants worldwide; of those, 190 are company-owned and 34<br />
are operated under franchise or license agreements. (Yahoo! Finance 11/9/07)<br />
California Pizza Kitchen Inc. opened its fifth restaurant in the Philippines on November 13. The new Makati City location,<br />
opened with franchisee Global Restaurant Concepts Inc., seats 130. (Company Release 11/13/07)<br />
Personnel |<br />
Sarah Goldsmith-Grover, S.V.P. of Marketing<br />
Rudy Sugueti, S.V.P. of Operations<br />
Karen Settlemyer, S.V.P. of Purchasing<br />
Larry Flax, CEO<br />
Richard L. Rosenfield, CEO<br />
Susan M. Collyns, CFO<br />
Brian Sullivan, S.V.P. of <strong>Menu</strong> Development<br />
News & Other |<br />
California Pizza Kitchen reported for the third quarter ended October 1 net earnings rose 21.8% to $6.7 million from $5.5<br />
million for the same period last year. Revenues increased 14.7% to $142.8 million from $124.5 million. Same-store sales grew<br />
5.6%. (Company Release 11/9/06)<br />
L.A. Food Show, a full-service offshoot of 175-unit California Pizza Kitchen* featuring globally influenced cuisine and signature<br />
cocktails, has announced that it will open a second unit in Beverly Hills, CA, in fall 2007. The original location is in Manhattan<br />
Beach, CA. (Company Website)<br />
California Pizza Kitchen Inc. reported for the fourth quarter ended December 31 revenues increased 16.4% to $146 million<br />
from $125.4 million for the same period last year. Same-store sales grew 6.9%. (Company Release 1/10/07)<br />
California Pizza Kitchen Inc. reported for the fourth quarter ended December 31 net earnings rose 8.8% to $3.7 million from<br />
$3.4 million for the same period last year. Revenues increased 16.4% to $146 million from $125.3 million. Same-store sales<br />
grew 6.9%. (Company Release 2/15/07)<br />
HMSHost Corp. and California Pizza Kitchen have extended their agreement for five more years for U.S. airport outlets of the<br />
pizza chain. Terms of the agreement call for development of more CPK ASAP outlets and kiosks at airports and travel plazas.<br />
An ASAP unit is slated to open at Oakland International Airport in California this year. HMSHost, a subsidiary of Autogrill<br />
S.P.A., operates 16 CPK ASAP units nationwide. (NRN Daily NewsFax 2/21/07)<br />
California Pizza Kitchen opened its CPK ASAP concept in the Oakland International Airport on April 5. The new unit is located<br />
in terminal two. The location is the first CPK ASAP airport location opened by HMSHost since July 2000. (Company Release<br />
4/5/07)<br />
California Pizza Kitchen Inc. reported for the first quarter ended April 1 preliminary revenues increased 15.2% to $149.4 million<br />
from $129.7 million for the same period last year. Same-store sales rose 4%. (Company Release 4/9/07)<br />
California Pizza Kitchen reported for the first quarter ended April 1 net earnings declined 21.7% $3.6 million from $4.6 million<br />
for the same period last year. Revenues rose 15.2% to $149.4 million from $129.7 million. Same-store sales increased 4.7%.<br />
(Company Release 5/10/07)<br />
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California Pizza Kitchen Inc. declared a three-for-two stock split which will be distributed as a 50% stock dividend. As of June<br />
11, shareholders of record will receive one additional share for every two shares of common stock they currently have. The<br />
new shares will start trading on June 18 on a split-adjusted basis. (Forbes.com 5/23/07)<br />
California Pizza Kitchen reported that for the second quarter ended July 1 revenues increased 16.4% to $158.6 million from<br />
$136.2 million for the same period last year. Same-store sales rose 5.4%. (Company Release 7/10/07)<br />
California Pizza Kitchen Inc. reported on a preliminary basis for the third quarter revenue increased about 13.5% over yearbefore<br />
figures to $162 million. The chain said it expects to earn about 3¢–4¢ per share in the third quarter. (Reuters 10/9/07)<br />
HMS Host Corp. has partnered with Sammy Hagar to introduce a new island-style café at the Kahului Airport in Maui, Hawaii.<br />
Sammy’s Beach Bar and Grill will be a full-service restaurant with a beach-inspired casual atmosphere, and will feature signed<br />
memorabilia from Hagar’s personal collection. The bar and grill is slated to open in early 2008. It is one of four new HMS Host<br />
dining venues slated to open at the airport. The other additions include a Jamba Juice, a Starbucks and a California Pizza<br />
Kitchen. (Businesswire.com 11/07/07)<br />
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112
Capital Grille, The<br />
Headquarters<br />
5900 Lake Ellenor Dr, Orlando, Florida 32809 USA<br />
Tel: (407)245-4000 Fax: (407)245-5389<br />
www.thecapitalgrille.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 204,198 165,200 131,208<br />
Company-owned ($000) 204,198 165,200 131,208<br />
Franchised ($000) - - -<br />
U.S. Number of Units 26 23 20<br />
Company-owned 26 23 20<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 8,193 7,750 7,197<br />
Concept Positioning |<br />
The Capital Grille is a fine-dining upscale steak concept offering quality food in a relaxed, elegant setting. The restaurant<br />
specializes in aged steaks and an extensive wine list. Darden Restaurants, Inc. owns the restaurant chain.<br />
Units are freestanding and average 7,000–8,500 sq. ft. with seating for 180–200 guests. Private dining accommodations for up<br />
to 30 guests are featured at all locations and offer à la carte or customized menus. Appealing to a more affluent, upscale<br />
market, restaurants features coffered ceilings, mahogany millwork and custom lighting as well as Oriental rugs, marble and<br />
hardwood floors, polished brass and beveled glass.<br />
The concept was developed by Bugaboo Creek Steakhouse and is now owned by RARE Hospitality International after they<br />
acquired Bugaboo Creek in 1996.<br />
<strong>Menu</strong> Positioning |<br />
The Capital Grille's menu features an extensive selection of American fare, particularly grilled steaks and chops for lunch and<br />
dinner. Its lunch menu features appetizers, soups, salads, sandwiches and luncheon entrées. The dinner menu features<br />
appetizers, soups, salads, main courses, seafood, sides and desserts. Signature items include on-premise dry-aged steaks<br />
such as the 24-oz. Signature Porterhouse and Grille’s Sliced Filet. Other menu items include lamb and veal chops, a variety of<br />
fresh grilled seafood and chicken and broiled lobster. Sides range from potatoes to asparagus with hollandaise sauce.<br />
Appetizers include pan-fried calamari, a cold shellfish platter and beluga caviar. The desserts are crème brulée and flourless<br />
chocolate espresso cake. Full bar service is available, and restaurants feature an extensive wine list with more than 300<br />
selections. <strong>Menu</strong> prices range from $4.95–$22.95 for lunch and $4.95–$35.95 for dinner. Checks average $60.<br />
Expansion Plans |<br />
Capital Grille opened new units in Indianapolis and Pittsburgh. (Company Release 8/16/07)<br />
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113
Personnel |<br />
Clarence Otis, Jr., CEO<br />
Brad Richmond, CFO<br />
Andrew H. Madsen, COO<br />
Harry Day, V.P. of Marketing<br />
Barry B. Moullet, S.V.P. of Supply Chain and Development<br />
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114
Captain D's Seafood Kitchen<br />
Headquarters<br />
1717 Elm Hill Pike Suite A-1, Nashville, Tennessee 37210 USA<br />
Tel: (615)391-5461 Fax: (615)231-2309<br />
www.captainds.com<br />
Ownership: Private<br />
Segment: Limited Service Seafood<br />
Chain Brands<br />
Del Taco<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 513,414 520,000 524,693<br />
Company-owned ($000) 271,289 285,000 288,977<br />
Franchised ($000) 242,125 235,000 235,716<br />
U.S. Number of Units 590 587 577<br />
Company-owned 315 318 318<br />
Franchised 275 269 259<br />
International Sales ($000) 1,496 750 746<br />
International Units 5 1 1<br />
Average Sales/Unit ($000) 854 890 902<br />
Concept Positioning |<br />
Captain D’s Seafood Kitchens are quick-service seafood restaurants offering sit down, takeout and drive-thru service from 11<br />
a.m. to 11 p.m. All food is freshly prepared at the store and cooked to order. Though specializing in seafood, the concept also<br />
offers chicken, sandwiches, salads and an array of side dishes and desserts. Captain D’s is based in Nashville, TN, and has<br />
approximately 600 restaurants in 23 states and several overseas countries.<br />
Units average 2,400 sq. ft., with a drive-thru window and seating for 72–90 customers. A new design, which was introduced in<br />
mid-2006, includes an open “T-Line” kitchen that improves drive-thru service and also allows dine-in customers to watch as<br />
their orders are prepared. Captain D’s Seafood Kitchen has also added smaller prototypes called D’s Express in recent years.<br />
These units are designed for strip shopping center sites.<br />
Captain D’s originated as Mr. D’s, a concept launched by Shoney’s in 1969. A nautical theme was adopted and the name<br />
changed to Captain D’s in 1975. In 2002, Lone Star acquired the chain in a stock-and debt assumption deal worth nearly $150<br />
million. In early 2005, Grotech Capital Group and Charlesbank Capital Partners purchased the Captain D’s seafood chain. In<br />
2006, Captain D’s partnered with Pizza Boys Group of Companies to open its first international unit in Trinidad. The company<br />
also unveiled a new restaurant design and menu in 2006. Future expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Captain D’s Seafood Kitchen menu features fish, chicken, shrimp, seafood, combo meals, sandwiches, lighter fare items,<br />
desserts and beverages. Signature items include the Classic Batter-Dipped Fish, Bite-Size and Butterfly Shrimp and Captain’s<br />
Jumbo Chicken Tenders. Dinners are served with fries, hush puppies and coleslaw. The lighter fare menu features both lowcalorie<br />
and low-carb menu options. New menu items include shrimp skewers, pasta dishes, blackened tilapia, several side<br />
dishes and Batter-Dipped chicken. Family packs and kids’ menu items are also available. <strong>Menu</strong> prices range from $1.99–<br />
$19.99. Checks average $8.71.<br />
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Expansion Plans |<br />
Captain D’s Seafood Kitchen is planning to expand into the San Antonio area with as many as 10 new units. The seafood<br />
chain currently owns, operates, and franchises some 600 restaurants in 26 states, the Caribbean and military bases around<br />
the world. (QSRmagazine.com 11/07/07)<br />
Promotion Plans |<br />
Captain D’s Seafood is offering $2 off a Shrimp Trio Platter. The offer ends August 31. (Company Website 8/21/07)<br />
Captain D’s Seafood Kitchen is rolling out a new TV campaign this fall to promote the chain’s recent reimaging, including a<br />
new logo, store redesign and revamped menu. The campaign, developed by Birmingham, AL-based O2 Ideas, will feature a<br />
stop-motion commercial showing a seaside artist painting a fish, which later “swims” through crowds of people and ends up on<br />
a poster outside a Captain D’s restaurant. (NRN Daily NewsFax 9/11/07)<br />
<strong>Menu</strong> Development |<br />
Captain D’s Seafood added new Value Combo Meals for $3.99. Customers can choose from 2-Piece Fish, 4- Piece Country<br />
Style Fish, ½-lb. Golden Shrimp, 2-Piece Chicken, Captain’s Catch Sandwich or 4-Piece Catfish. All meals come with fries,<br />
hushpuppies and a 22-oz. beverage. (Company Website)<br />
Captain D’s is restructuring menus and operations. New menus are intended to elevate the 600-unit chain to fastcasual dining<br />
with grilled fish, pasta dishes and expanded side dishes. Captain D’s will measure guest satisfaction and store performance<br />
and train employees in safety and hospitality skills. (Nation’s Restaurant News Online 5/21/07)<br />
Captain D’s rolled out several new limited-time offers. These include: • Chicken & Butterfly Shrimp Dinner—breaded chicken<br />
tenders and crunchy butterfly shrimp paired with a choice of two sides and hushpuppies • Chicken & Shrimp Skewers Platter—<br />
breaded chicken tenders and shrimp skewers served with two sides and a breadstick • Chicken Torpedo Snack Attacker—<br />
breaded chicken tender served on a crunchy breadstick with bacon ranch sauce and cheese • Double Bacon Ranch Chicken<br />
Sandwich—crispy or grilled chicken breast with bacon ranch sauce, lettuce, tomato and cheese served on ciabatta bread •<br />
Chicken Caesar Salad—grilled or crispy chicken over romaine and iceberg lettuce with shaved Parmesan cheese, croutons<br />
and tomato wedges paired with a choice of salad dressings • Chicken Pasta Alfredo—grilled chicken over pasta, topped with<br />
Alfredo sauce and served with a breadstick • Parmesan Scampi Dinner—chicken breast topped with scampi sauce and<br />
shaved Parmesan cheese served over a bed of rice and paired with a choice of two sides and a breadstick. (Company<br />
Website)<br />
Captain D’s debuted a new menu items at a location in Tennessee. The new items include more grilled options of wild Alaskan<br />
salmon, tilapia, mahi mahi, deep-sea flounder and shrimp skewers; pasta offerings such as shrimp scampi, creamy shrimp<br />
Alfredo and classic chicken Parmesan; and side items including garlic mashed potatoes, mac ’n’ cheese, steamed broccoli,<br />
fresh sliced tomatoes, roasted red peppers and garden vegetables. The chain plans to gradually roll out these selections the<br />
rest of its 600 units nationwide. (Theleafchronicle.com 7/06/07)<br />
Captain D’s is expanding its menu to include new grilled fish entrées. Alaskan Salmon and Grilled Tilapia are listed in addition<br />
to its signature batter-dipped fish. (Company Website)<br />
Captain D’s Seafood Kitchen introduced its Kitchen Selection menu featuring a line of seasonal entrées. Offerings include<br />
Seasoned Tilapia, Wild Alaskan Salmon, Coastal Flounder, Shrimp Skewers, Mahi Mahi, Shrimp Scampi Platter and a<br />
Chicken Breast Dinner. (Company Website)<br />
Franchise Activity |<br />
Captain D’s Seafood Restaurants signed an agreement with a franchisee to open six units in North Carolina over the next five<br />
years. There are 587 Captain D’s units in the U.S. (Franchise Times 10/06 p98)<br />
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Personnel |<br />
Mark Miller, Executive Chef<br />
David Head, COO/President<br />
Paula Vissing, S.V.P. of Purchasing<br />
Ronald Powell, CEO<br />
Mike Payne, CFO<br />
Bob Kendzior, CMO<br />
Captain D’s Seafood has welcomed back Sandra Clingan Smith as vice president of marketing. Clingan Smith held the same<br />
position for the company from 1995 to 1999. (NRN Daily NewsFax 3/16/07)<br />
News & Other |<br />
Captain D’s Seafood Kitchen and Del Taco have opened their first dual-branded concept in Mt. Juliet, TN. Both quick-service<br />
chains are owned by Nashville-based Sagittarius Brands. Captain D’s operates more than 600 locations and Del Taco has<br />
more than 490 units across the U.S. (NRN Daily NewsFax 8/3/07)<br />
Captain D’s Seafood is being sued by Shoney’s franchisee Khalil Elbanna, alleging racial discrimination and unspecified<br />
damages. The suit claims that Captain D’s Seafood refused to approve Elbanna as a franchisee because of his Middle<br />
Eastern ethnicity. A Captain D’s spokesman said he was unfamiliar with the lawsuit. (NRN Daily NewsFax 10/8/07)<br />
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117
Caribou Coffee<br />
Headquarters<br />
3900 Lake Breeze Ave. North, Brooklyn Center, Minnesota 55429 USA<br />
Tel: (763)592-2200 Fax: (763)592-2300<br />
www.caribou-coffee.com<br />
Ownership: Public<br />
Segment: Limited Service Coffee/Beverage<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 248,000 220,000 170,000<br />
Company-owned ($000) 236,000 220,000 170,000<br />
Franchised ($000) 12,000 - -<br />
U.S. Number of Units 464 385 305<br />
Company-owned 440 385 305<br />
Franchised 24 - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 615 625 605<br />
Concept Positioning |<br />
Caribou Coffee Company is a limited-service coffeehouse chain that specializes in high-quality, gourmet coffee and espressobased<br />
drinks as well as specialty teas and baked goods. The chain is owned by Arcapita Inc., which also operates Church’s<br />
Chicken. The company operates 464 Caribou units across the U.S., 24 of which are franchised.<br />
Units range from 1,600-2,000 sq. ft. with seating for 25-40 people. Caribou’s Alaskan lodge theme features comfortable<br />
couches, fireplaces, granite counter tops, slate and pine floors, and pine millwork to create “a neighborhood gathering place”<br />
for coffee and fresh baked goods. Each store has its own personality with local amenities and features free Wi-Fi service.<br />
Kiosks average 250-500 sq. ft. and operate in shopping centers and several supermarket chains: Byerly’s, Lund’s and<br />
Heinen’s in Cleveland. All units operate in densely populated urban and suburban areas.<br />
Caribou Coffee first opened in 1992 in Edina, MN, by John and Kim Puckett. In 2000, the chain was acquired by international<br />
investment firm Arcapita Inc. With a focus on rapid growth, Caribou has over 475 units. The company has also grown bean<br />
coffee sales in supermarkets, mass merchandisers and club stores—including Target, Sam’s Club and Costco.<br />
<strong>Menu</strong> Positioning |<br />
Caribou Coffee is open for breakfast, lunch and dinner and features regular and specialty hot and cold coffee drinks, espresso<br />
drinks, premium baked goods, pastries and gourmet whole bean coffees. Caribou offers 22 unique coffee varieties and blends,<br />
ranging from light to dark roasts, coffee-of-the-day and branded specialty drinks. Caribou Coolers, available in vanilla,<br />
chocolate, espresso and caramel, are a popular alternative to hot coffee drinks. Other popular warm beverages include Mint<br />
Condition, Caramel High Rise, White Berry and Turtle Mocha. In addition, Caribou also offers a variety of seasonal drinks.<br />
Premium teas and fruit smoothies are also available. Food items consist of muffins, scones, croissants, danishes, cookies and<br />
brownies. <strong>Menu</strong> prices range from $1.60–$5.95.. Checks average $4.<br />
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Expansion Plans |<br />
Caribou Coffee is aiming to grow. The Minnesota-based company hopes to double its current total of 500 locations within<br />
seven years. After recovering from past financial troubles, Caribou Coffee is initiating new tactics to attract customers. These<br />
include doubling the number of new products offered, remembering customers’ names and favorite drinks, and expanding<br />
brand recognition in groceries, hotels and offices. (Atlanta Journal-Constitution.com 6/3/07)<br />
Promotion Plans |<br />
Caribou Coffee is offering a $4 credit on Caribou Cards until November 11. Customers qualify for the credit after 10 purchases<br />
of $1.35 or greater are registered on the card. (Company Website 9/18/07)<br />
Caribou Coffee is celebrating the introduction of its Pumpkin Pie Latte with special offers, including 20% off all merchandise,<br />
$1 off any latte and a free drink with the purchase of a pound of coffee beans. The offers are valid from September 24–30.<br />
(Company Website 9/24/07)<br />
<strong>Menu</strong> Development |<br />
Caribou Coffee introduced its new Gingerbread Latte, Ho Ho Mocha and Fa La Latte. (Company Release 11/27/06)<br />
Caribou Coffee plans to launch a new premium ready-to-drink iced coffee line next summer. (Company Release 11/30/06)<br />
Krispy Kreme is looking to reinvigorate itself by adding new menu items and better coffee and beverage offerings as well as<br />
introducing a less costly footprint. Select franchisees have partnered with established coffee brands such as Caribou Coffee or<br />
The Coffee Bean & Tea Leaf to sell coffee in-stores. Krispy Kreme is also testing a downsized store in both international and<br />
domestic units that is about half the size of its original outlets. The company is also working on wholesale technologies such<br />
as frozen food products for grocery stores’ in-store bakeries. In 2005, Krispy Kreme closed several units and saw its corporate<br />
revenues decrease by 23.2%. The company recently agreed to settle a large securities class action lawsuit filed against it for<br />
about $75 million earlier this year. (Nation’s Restaurant News 11/13/06 p4)<br />
Caribou Coffee and Coca-Cola plan to debut an iced drink this summer under the coffee chain’s banner. (OregonLive.com<br />
1/02/07; MSNBC.com 1/03/07)<br />
Caribou Coffee added a Blueberry Muffin, Reduced Fat Mountain Berry Muffin, Chocolate Chocolate Chip Muffin and<br />
Cinnamon Streusel Muffin with White Chocolate Chips to the menu. (Company Website)<br />
Caribou Coffee Co. will offer its lunch menu in all 475 units nationwide. The menu has been tested in the Chicago and<br />
Minneapolis markets. Caribou will partner with local food companies to provide food items, such as roasted chicken, smoked<br />
turkey and Rosemary Romano Chicken Salad sandwiches. (Nation’s Restaurant News Online 6/26/07)<br />
Caribou Coffee added lunch items at locations in Minneapolis and Chicago. The chain is offering prepackaged Roasted<br />
Chicken, Smoked Turkey and Rosemary-Romano Chicken Salad Sandwiches as well as Turkey-Cherry Pasta Salad. (NRN<br />
Daily NewsFax 6/27/07)<br />
Caribou Coffee has rolled out its Reindeer Blend for the holiday season. Reindeer Blend is a premium dark roast with hints of<br />
caramel, available in regular and decaf. (Company Release 11/01/07)<br />
Franchise Activity |<br />
Caribou Coffee is planning to open 50–70 outlets this year, with 25–40 of these to be franchised outlets. Caribou currently<br />
operates 24 franchised stores. In 2006, the coffee chain opened 80 units, bringing its total number to 464 stores.<br />
(GlobeSt.com 1/08/07)<br />
International Activities |<br />
Caribou Coffee plans to develop up to 50 units in South Korea over the next 10 years. A minimum of 25 stores will open in the<br />
area over the next five years. (Company Release 12/13/06)<br />
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Caribou Coffee Company signed an agreement with E & Z Coffee Company to open a minimum of 25 Caribou Coffee outlets<br />
in South Korea over the next five years. The first store will open in Seoul in early 2007 and the deal calls for up to 50 units over<br />
the next 10 years. (Company Release 12/13/06)<br />
Personnel |<br />
Rosalyn Mallet, COO/President<br />
Rosalyn Mallet, Interim CEO/President<br />
Kathy Hollenhorst, S.V.P. of Marketing<br />
Amy O'Neil, S.V.P. of Purchasing<br />
George Mileusnic, CFO<br />
Eddie Boyle, V.P. Research & Development<br />
Caribou Coffee vice president of real estate, Janet Astor, has left the company, effective January 11. (Company Release<br />
1/11/07)<br />
Caribou Coffee Company Inc. hired Rosalyn “Roz” Mallet as president and chief operating officer. Previously, Mallet served as<br />
chief operating officer for La Madeleine French Bakery. (Company Release 3/5/07)<br />
Caribou Coffee announced that Gary Graves and Sarah Palisi Chapin have been appointed members of its Board of Directors.<br />
Palisi Chapin and Graves will serve as independent board members. Palisi Chapin, a founding partner in private-equity<br />
restaurant investment firm The Chain Gang, previously served on the boards for Maggie Moo’s and Jersey Mike’s Subs.<br />
Graves recently served as President and Chief Executive Officer for La Petite Academy. He has also held positions with<br />
Boston Market and PepsiCo. (Company Release 8/27/07)<br />
Caribou Coffee Inc. announced that chairman and CEO Michael J. Coles has stepped down. Rosalyn “Roz” Mallet has been<br />
named interim CEO and Gary Graves has been named to the position of non-executive board chairman. Coles will remain on<br />
the company’s board of directors. Mallet served most recently as Caribou’s president and chief operating officer, while Graves<br />
currently serves as CEO of American Laser Centers. (Smartbrief.com 11/12/07)<br />
News & Other |<br />
Caribou Coffee Company Inc. reported for the third quarter ended October 1 a net loss of $3.1 million from a loss of $1.2<br />
million for the same period last year. Revenues grew 17.0% to $57.0 million from $48.7 million. Same-store sales decreased<br />
1%. (Company Release 11/1/06)<br />
Keurig Inc. is partnering with Caribou Coffee Company to market Caribou’s coffees in its K-Cup portion packs. Keurig will be<br />
responsible for packaging the coffee as well as serving as the wholesaler, distributor and direct retailer for all the Caribou<br />
Coffee K-Cups. Caribou is planning to eventually market both Caribou Coffee K-Cups and Keurig coffebrewers at its<br />
coffeehouses. The eight Caribou varieties that will be available in K-Cups are Caribou Blend, French Roast, Daybreak Morning<br />
Blend, Sumatra, Fair Trade, Colombia, Caribou Blend Natural Decaf and Decaf Sumatra. (Company Release 1/08/07)<br />
Caribou Coffee reported for the fourth quarter ended December 31 revenues increased 18% and same-store sales rose 2%.<br />
(NRN Daily NewsFax 1/16/07)<br />
Caribou Coffee expects to be operating coffee kiosks at four additional U.S. airports by the end of 2007. Plans call for a total of<br />
eight kiosks, the first of which opened at Hartsfield-Jackson Atlanta International in late 2006. Other Caribou outlets will be<br />
located in the Dulles International, Reagan National and Denver International airports. The coffee chain currently has a<br />
presence in three U.S. airports. (Company Release 1/08/07)<br />
Caribou Coffee reported for the fourth quarter ended December 31 net earnings increased 18% to $66.7 million from $56.4<br />
million for the same period last year. Same-store sales grew 2%. (Company Release 2/15/07)<br />
Caribou Coffee Company Inc. reported for the first quarter ended April 1 preliminary net earnings increased 10% to $61.5<br />
million. Same-store sales in company-owned units declined 1%. (Company Release 4/9/07)<br />
Caribou Coffee reported preliminary results for the fourth quarter ended July 1. Net earnings increased 11% over year-before<br />
figures to $62.7 million. Same-store sales rose 1%. Other sales grew 43% to $3.4 million from $2.4 million for the same period<br />
last year. (Company Release 7/12/07)<br />
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Caribou Coffee’s iced coffee will appear in grocery stores in Atlanta, Chicago, Detroit, Minneapolis and Kansas City, MO, as<br />
well as Cincinnati, Columbus, and other parts of Ohio. The beverage will be available in regular, vanilla and espresso flavors,<br />
packaged in a 12-oz. reclosable Alumi-Tek aluminum bottle. Next year, the drink will be on sale nationally.<br />
(MediaPostPublications 8/24/07)<br />
Coca-Cola Co. has teamed with Caribou Coffee to create a new line of ready-to-drink Caribou Iced Coffee. The product is<br />
being tested in c-stores in Atlanta, Chicago, Cincinnati, Columbus, Detroit, Kansas City and Minneapolis. It will be sold at<br />
Caribou Coffee shops and distributed nationally beginning in 2008. Caribou Iced Coffee, offered in regular, espresso and<br />
vanilla flavors, is sold in 12-oz. aluminum bottles. (MSNMoney.com 9/10/07)<br />
Caribou Coffee increased its coffee prices by an average of 2.5%, or 8¢ per drink. With the increase, the chain’s prices are<br />
now roughly equal to those of Starbucks. (NRN Daily NewsFax 9/27/07)<br />
Caribou Coffee reported for the third quarter ended September 30 same-store sales increased 1% over the same quarter of<br />
2006. Total sales rose 9% to $62 million. The increase was attributed to new food and beverage offerings. (Associated Press<br />
10/11/07)<br />
Caribou Coffee opened its first licensed college campus location in the Student Union at Kansas State University. The unit<br />
features the chain’s full beverage menu as well as seasonal blended drinks and will accept campus dining dollars for payment.<br />
(Food Management 9/07)<br />
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121
Carino's Italian Grill<br />
Headquarters<br />
7500 Rialto Blvd. Suite 250, Austin, Texas 78735 USA<br />
Tel: (512)263-0800 Fax: (512)263-8055<br />
www.carinos.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 395,018 362,500 276,000<br />
Company-owned ($000) 184,842 170,000 132,000<br />
Franchised ($000) 210,176 192,500 144,000<br />
U.S. Number of Units 168 160 130<br />
Company-owned 77 75 61<br />
Franchised 91 85 69<br />
International Sales ($000) 8,000 5,500 10,000<br />
International Units 9 7 5<br />
Average Sales/Unit ($000) 2,400 2,500 2,500<br />
Concept Positioning |<br />
Carino's Italian Grill is a full-service Italian restaurant casual-dining concept. The chain specializes in huge portions of<br />
traditional Italian-American favorites, including homemade ravioli, 12-layer lasagna, chicken parmigiana and spaghetti.<br />
Units are typically freestanding and average 6,000 sq. ft. Carino's creates an inviting dining experience with a comfortable,<br />
vibrant interior, intimate and cozy dining rooms with booth and table seating, wood and stone walls and colorful mismatched<br />
wooden chairs. Hand-painted Italian ceramics and antique-framed family pictures enhance the warm and welcoming<br />
atmosphere.<br />
Creed Ford and Norman J. Abdallah founded Fired Up, Inc. in 1997 in order to acquire Kona Restaurant Group, which owned<br />
and operated the five-unit Johnny Carino's Italian Kitchen Chain and one Kona Ranch Steakhouse. Carino's has gone through<br />
many changes since Fired Up acquired it,including modifications to its name, menu, signage, recipies and design. The<br />
company made an effort to distinguish the concept from its predecessor Spageddies, a former Brinker International concept.<br />
The company has development agreements for over 490 Johnny Carino’s to be developed by 20 franchise partners<br />
throughout nationwide, in Eygpt and ten countries in the Gulf area of the Middle East. Fired Up intends to expand 10–12<br />
company restaurants a year and continue franchise growth of multi-unit Johnny Carino’s through strategic development<br />
partnerships. Fired Up expects that the mature Johnny Carino’s chain will be 70% franchised and 30% company owned. In<br />
2007, Johnny Carino's changed their name to Carino's Italian Grill to emphasize the change in concept which moved away<br />
from Italian and is now focused more on grilled cuisine.<br />
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<strong>Menu</strong> Positioning |<br />
Carino's lunch and dinner menus feature appetizers, soups and salads, pizza, oven-roasted sandwiches, featured pastas and<br />
specialties including chicken, meat and fish, desserts and beverages. Its menu also features a variety of gluten-free dishes,<br />
including Shrimp Scampi, Chicken Scaloppini and Cedar Planked Salmon. Signature menu items include Cicilian Fire Sticks—<br />
Italian sausage, grilled chicken, bacon, roma tomatoes, jalapeños and cheeses, rolled in a tomato basil tortilla; Homemade<br />
Lasagna—12 layers of pasta, cheese and meat sauce; Shrimp Scampi, shrimp and mushrooms sautéed in garlic and tossed<br />
with angel hair, roma tomatoes and basil in a white wine butter sauce; Jalapeño Garlic Tilapia—tilapia sautéed with garlic,<br />
roma tomatoes, jalapeños and spinach in a lemon butter cream sauce over angel hair pasta; and Hand-Breaded Parmigiana—<br />
Italian-breaded eggplant, chicken or veal layered with spicy marinara, basil, mozzarella and Parmesan cheeses served with<br />
spaghetti.. Appetizers include Baked Stuffed Mushrooms, Pepper Jack Fondue and Pizza Mergherita. Carino’s restaurants<br />
also feature "Grandioso" platters and "Wine Harvest" dinners that cater to families and dining parties of all sizes. Full-liquor<br />
service is available and locations feature an extensive wine selection. Kids’ menu are available. <strong>Menu</strong> prices range from<br />
$3.99–$24.99. Checks average $11.<br />
<strong>Menu</strong> Development |<br />
Johnny Carino’s Italian introduced several new menu items. New offerings include: •Pepper Jack Crab Fondue—spicy blend of<br />
lump crab meat and pepper Jack cheese finished with Italian pico de gallo and served with Parmesan garlic crostini toast<br />
•Dynamite Sticks—Italian sausage, chopped grilled chicken, bacon, Roma tomatoes, jalapeños and creamy Italian cheeses<br />
rolled in a tomato-basil tortilla, served with ranch and spicy marinara sauces •Fresh Caprese Salad—large slices of creamy<br />
mozzarella and fresh ripened tomatoes topped with seasoned olive oil, fresh basil and sweet balsamic glaze •Pecan Crusted<br />
Chicken Salad—pecan-crusted chicken on fresh spinach with Gorgonzola crumbles, sliced Roma tomatoes, applewoodsmoked<br />
bacon and red onions, mixed with a warm bacon vinaigrette dressing and topped with flash-fried onion straws •Italian<br />
Chopped Club Salad—fresh greens with Gorgonzola vinaigrette, finished with sliced grilled chicken, applewood-smoked<br />
bacon, spicy pepperoni, Gorgonzola cheese and fresh Roma tomatoes with garlic toast and Asiago cheese •Prosciutto<br />
Wrapped Filet—seasoned and seared 8-oz. beef tenderloin wrapped in prosciutto with sides of Italian green beans and Asiago<br />
smashed potatoes •Grilled Strip Steak—12-oz. strip steak, seasoned and baked on an open-flame grill, with Italian green<br />
beans and roasted rosemary potatoes •Cedar Planked Salmon—salmon roasted on a cedar plank with citrus balsamic glaze<br />
and sides of garlic sautéed spinach and angel-hair pasta with tomatoes •Snow Crab Ravioli—large ravioli stuffed with snow<br />
crab and spinach and finished with tangy lemon basil cream sauce, crab meat, fresh basil and diced Roma tomatoes •Stuffed<br />
Roasted Vegetable Rigatoni—large rigatoni stuffed with roasted portabella mushrooms, red and yellow peppers, onions,<br />
asparagus, spinach and squash in a creamy marinara vegetable sauce with Asiago cheese (Company Website)<br />
Personnel |<br />
Craig Paschich, S.V.P. of Operations<br />
Chris Peterson, V.P. of Culinary Development<br />
Norman Abdallah, CEO<br />
Carey Carrington, CFO<br />
Mitch Welch, V.P. of Purchasing<br />
News & Other |<br />
Johnny Carino’s Country Italian has been repositioned and renamed Carino’s Italian Grill by parent company Fired Up Inc. The<br />
repositioning show-cases the chain’s open kitchens and open-flame grilling. The “Italian Meets the Grill” theme includes new<br />
menu items such as Grilled Chicken Diavolo and Cedar-Planked Salmon. Carino’s will also debut a new marketing campaign<br />
featuring TV, billboard and print ads conveying the message that it is “not your garden variety Italian.” (NRN Daily NewsFax<br />
5/01/07)<br />
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123
Carl's Jr.<br />
Headquarters<br />
6307 Carpinteria Ave. Suite A, Carpinteria, California 93013 USA<br />
Tel: (805)745-7500 Fax: (714)490-3630<br />
www.carlsjr.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,304,133 1,210,000 1,181,000<br />
Company-owned ($000) 590,613 575,000 558,000<br />
Franchised ($000) 713,520 635,000 623,000<br />
U.S. Number of Units 1,004 983 959<br />
Company-owned 393 428 432<br />
Franchised 611 555 527<br />
International Sales ($000) 82,000 65,000 65,000<br />
International Units 83 66 58<br />
Average Sales/Unit ($000) 1,290 1,250 1,225<br />
Concept Positioning |<br />
Carl’s Jr. is a limited-service hamburger chain that specializes in charbroiled hamburgers and chicken sandwiches. The chain,<br />
owned by CKE Restaurants Inc., operates 1,087 units worldwide, 611 of them franchised.<br />
Most units are freestanding, 2,500–4,000 sq. ft. with seating for 65–115 patrons. The majority include drive-thru facilities. Most<br />
units are located in malls or in-line buildings, Carl's Jr. also has kiosk units. Interiors are light and airy, with food murals, and<br />
bright colors and accent lighting used throughout the dining area. Display cases showcase salads and desserts. Units not<br />
located in high-traffic areas offer limited table service; customers order and pay for their food upon entering, and the food is<br />
delivered to the table after it has been prepared. Several Carl's Jr. restaurants are open 24 hours a day.<br />
Carl N. Karcher opened Carl's Jr. in Anaheim, CA, in 1956. In 1981, with 300 restaurants in operation, Carl Karcher<br />
Enterprises became a publicly held company. In 1994, Carl Karcher Enterprises became a wholly owned subsidiary of CKE<br />
Restaurants, Inc. A revitalization plan was established that included a remodeling and image enhancement program, along<br />
with a dual-branding effort with the Green Burrito concept.<br />
CKE next began a series of acquisitions of other restaurant chains, purchasing the Taco Bueno chain in 1996 and Hardee’s,<br />
the nation’s fourth-largest burger quick-service restaurant chain, in 1997. In 2002, CKE purchased Santa Barbara Restaurant<br />
Group, Inc. (SBRG), acquiring direct ownership of the Green Burrito brand. Currently, the company is seeking franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Carl's Jr. is open for breakfast, lunch and dinner, featuring a wide variety of charbroiled hamburgers, sides, salad, breakfast<br />
and beverages. Popular sandwiches include its the Famous Star Hamburger, Western Bacon Cheeseburger, Super Star<br />
Hamburger, Charbroiled Chicken Club Sandwich, Spicy Chicken Sandwich and the Six-Dollar Burger. In 2006, the chain<br />
introduced its new Philly Cheesesteak Burger. Sides include baked potatoes, fries, onion rings and fried zucchini. Most<br />
restaurants have self-service salad bars and all-you-can-drink beverage bars, The chain also offers hand-scooped ice cream<br />
shakes and malts that are blended to order. Flavors include the traditional chocolate, strawberry and vanilla, Oreo cookie—as<br />
well as its newest variety, M&M. The breakfast menu features Steak & Egg Burrito, Smoked Sausage Breakfast Sandwich,<br />
Sunrise Croissant,,Sourdough Breakfast Sandwich, French Toast Dip, pastries and muffins. <strong>Menu</strong> prices range from $1–<br />
$7.59. Checks average $5.<br />
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Expansion Plans |<br />
Carl’s Jr. opened it’s 300th dual-branded restaurant, Carl’s Jr./Green Burrito, on January 30 in Livermore, CA. (Company<br />
Release 1/30/07)<br />
Promotion Plans |<br />
Carl’s Jr. launched a new commercial called “Girlfriend” featuring a good-looking waitress. Introducing the new Buffalo<br />
Chicken Sandwich, the commercial ends with a male customer getting busted by his girlfriend for taking too much interest in<br />
the waitress. (Company Release 2/26/07)<br />
Carl’s Jr. and Hardee’s restaurants across the country are encouraging employees and customers to join the company in a<br />
fundraiser to benefit breast cancer awareness called “Pink Star.” Customers are encouraged to donate to the cause at a local<br />
Carl’s Jr. or Hardee’s unit. The donations benefit the National Breast Cancer Foundation. The chains have been holding the<br />
fundraiser for three years. Customers who donate receive a coupon for a free beverage and a personalized pink Happy Star to<br />
place on the restaurant’s lobby display. The Happy Star is the logo for both Carl’s Jr. and Hardee’s. The campaign began on<br />
May 2 and will end on May 23. (Company Release 5/2/07)<br />
CKE Restaurants Inc. has agreed to a national promotion for the feature film “Igor,” slated for release in October 2008. CKE’s<br />
more than 3,000 Hardee’s and Carl’s Jr. restaurants will offer “Igor”-designed premiums as part of their Cool Kids Combo<br />
meals. In-store displays for the movie and an online campaign are also part of the promotion. (Yahoo! Finance 11/16/07)<br />
<strong>Menu</strong> Development |<br />
Carl’s Jr. and Hardee’s restaurants rolled out Mint Chip Hand-Scooped Ice Cream Shakes & Malts to its menu. The malts and<br />
shakes feature hand-scooped vanilla ice cream, mint syrup, chocolate flakes and milk blended to order and topped with<br />
whipped cream. Malt powder can be added to create a malt taste. The beverages are priced at $2.99. (Company Release<br />
11/06/06)<br />
Carl’s Jr. introduced its new Philly Cheesesteak Burgers. The burgers feature thinly sliced steak and a burger patty, peppers,<br />
Swiss and American cheeses, onions and mayonnaise on a seeded bun. The item is priced at $3.49 for a single, $4.49 for a<br />
double and $4.99 for the Six Dollar Burger. (Company Release 11/15/06)<br />
Carl’s Jr. introduced its new Chipotle Chicken Salad on January 3. The item features charbroiled chicken, Parmesan cheese,<br />
chipotle dressing and salsa over shredded lettuce in a tortilla shell bowl. It is priced at $4.59. (Company Release 1/3/07)<br />
Carl’s Jr. and Hardee’s restaurants rolled out Buffalo Chicken Sandwich featuring a crispy chicken filet covered in Frank's<br />
RedHot Sauce, topped with red onions, tomatoes, lettuce and ranch dressing, and served on a seeded bun. (Company<br />
Release 2/26/07)<br />
Carl’s Jr. debuted a Chipotle Chicken Salad, made in a crispy tortilla bowl with shredded lettuce, charbroiled chicken, fresh<br />
salsa and Parmesan cheese and topped with tangy chipotle dressing. (Company Release 4/27/07)<br />
KFC, Arby’s, Carl’s Jr. and McDonald’s as well as many other chains are hopping on the Mexican-flavor bandwagon with new<br />
items featuring chipotle, poblano peppers, spicy beans and cilantro. KFC introduced its Grilled Mexi Bowl featuring Mexicanstyle<br />
rice, jalapeño pinto beans and pico de gallo relish; Arby’s is now offering a Santa Fe Salad; McDonald’s introduced its<br />
Southwest Salad; and for years, Carl’s Jr. has featured items such as breakfast burritos. (Nation’s Restaurant News 5/21/07<br />
p6)<br />
Carl’s Jr. debuted OrangeSicle shakes and malts. The drink blends orange crème syrup, vanilla ice cream and milk. Prices<br />
start at $2.99. (NRN Daily NewsFax 5/24/07; Company Release 5/24/07)<br />
Carl’s Jr. rolled out the Teriyaki Burger, an Angus beef patty topped with onion, tomato, lettuce, mayonnaise, Swiss cheese,<br />
grilled pineapple and teriyaki sauce. The item can be purchased in single, double or Six Dollar Burger options, priced at $2.89,<br />
$3.89 and $4.59, respectively. (NRN Daily NewsFax 5/24/07)<br />
Hardee’s and Carl’s Jr. will eliminate trans fats by the beginning of 2008. Instead, the chains will use 100% canola cooking oil.<br />
The taste and quality of the food will not be altered. (Bizjournals.com 6/6/07)<br />
Carl’s Jr. debuted a Breakfast Club Sandwich, with roasted turkey, shaved ham, a fried egg, Swiss and American cheeses and<br />
bacon on grilled sourdough bread. The item is priced at $2.79 or $4.29 as part of a combo meal with hash rounds and coffee.<br />
(NRN Daily NewsFax 6/21/07)<br />
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Carl’s Jr. will introduce its Patty Melt Burger, a charbroiled beef patty with grilled onions and American cheese between grilled<br />
rye bread. The burger will be sold at participating Carl’s Jr. restaurants in single ($2.89), double ($3.89) and Six Dollar Burger<br />
($4.59) varieties. (Yahoo! Finance 8/22/07)<br />
Carl’s Jr. introduced its Patty Melt for a limited time. The sandwich features a charbroiled beef patty with grilled onions and<br />
American cheese on grilled rye bread. It is priced at $2.89 for a single, $3.89 for a double and $4.59 for a Six Dollar Burger<br />
version. (Nation’s Restaurant News 9/10/07)<br />
Carl’s Jr. has announced the return of the Portobello Mushroom Six Dollar Burger to its menu. The limited-time addition to the<br />
chain’s Six Dollar Burger line features sliced portobello mushrooms sautéed with garlic and parsley, “five-star” mushroom<br />
sauce, a charbroiled 100% Angus beef patty, melted Swiss cheese, sliced red onion, tomato, and lettuce, all on a seeded bun.<br />
The burger, introduced in 2005, will sell for $4.89 each and $6.89 as part of a combo meal at participating restaurants. (Carl’s<br />
Jr. Press Release 10/31/07)<br />
CKE Restaurants Inc. now says its Carl’s Jr. and Hardee’s chains will be trans fat-free by the end of 2008. The company had<br />
slated the transition to canola oil in all its restaurants for early 2008, but says many restaurants require more time due to<br />
operational issues. (QSRmagazine.com 11/26/07)<br />
Franchise Activity |<br />
Pizza Patrón has inked a two-year, 40-unit development deal with a franchisee group owned by the LeVeckes—grandchildren<br />
of Carl’s Jr. founder Carl Karcher. The family-owned group already operates eight Pizza Patrón units in its market territory of<br />
Arizona. Pizza Patrón also has another 40 new units under development. The Dallas-based chain, which caters to a<br />
predominantly Hispanic customer base, currently operates 65 locations. (NRN.com 11/14/06)<br />
Carl’s Jr. opened a new location in Tucson, AZ, on June 19. MJKL Enterprises LLC, Arizona’s largest Carl’s Jr. franchisee,<br />
opened the unit with an indoor playground, teller machine and drive-thru. MJKL Enterprises is owned by the grandchildren of<br />
the chain’s founder. (Azstarnet.com 6/20/07)<br />
International Activities |<br />
Carl’s Jr. opened a unit in Kuala Lumpur, Malaysia, on July 23. It is the first in Malaysia and the fifth of 25 company<br />
restaurants that will be opened over the next six years as part of a franchise agreement with Aspac F&B SDN, BHD.<br />
(Company Release 8/7/07)<br />
Technology |<br />
Carl’s Jr. franchisee Star Chasers Oklahoma has installed touchscreen kiosks in 31 of its 39 restaurants in Oklahoma and<br />
Wichita Falls, TX. The kiosks include the entire menu on a colorful, animated touchscreen, offering diners the chance to<br />
customize their order and pay with cash or credit card. The technology will provide customers with shorter lines and more<br />
freedom when placing an order. CKE Restaurants Inc., parent of Carl’s Jr., plans to launch other test locations in California<br />
later this year. Other chains experimenting with the technology include Jack in the Box, Burger King and McDonald’s.<br />
(NewsOK.com 10/6/07)<br />
Personnel |<br />
Andrew F. Puzder, CEO/President<br />
Theodore Abajian, CFO<br />
Amir Siddiqi, COO<br />
Brad R. Haley, V.P. of Marketing<br />
Bruce Frazer, S.V.P. of <strong>Menu</strong> Development<br />
John Dunion, E.V.P. of Supply Chain<br />
News & Other |<br />
Carl’s Jr. reported for the third quarter same store sales increased 6.2%. (Company Release 11/15/06)<br />
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Carl’s Jr. reported November same-store sales increased 6.2%. (Company Release 12/12/06)<br />
CKE Restaurants has acquired two million shares from Pirate Capital LLC for $18.35 per share. CKE is the operator and<br />
franchisor of Carl’s Jr., Hardee’s and La Salsa Fresh Mexican Grill brands. (Company Release 12/29/06)<br />
Carl’s Jr. is using its frying oil to fuel the chain’s vehicles. The company plans to convert cars used by its repair technicians<br />
and regional vice presidents to vegetable oil instead of gas by 2010. Five of the cars are already running on the oil.<br />
(Tucsoncitizen.com 3/23/07)<br />
Jack in the Box is being sued by CKE Restaurants for deceptive advertising involving its Carl’s Jr. and Hardee’s, as well as<br />
McDonald’s and Burger King. The complaint states that Jack in the Box advertisements imply competitors use cow anus to<br />
make Angus burgers. CKE seeks a court ruling blocking the ads. (MSNBC.com 5/29/07; NRN Daily NewsFax 5/29/07)<br />
A Carl’s Jr./Green Burrito unit is slated to open in downtown Oklahoma City on September 5. The dual-branded concept will<br />
occupy a space on Main Street. Two more units are expected to open in Oklahoma in early 2008. (Journalrecord.com 7/19/07)<br />
CKE Restaurants Inc. reported that Hardee’s August same-store sales rose 5% over year-before figures, but same-store sales<br />
at Carl’s Jr. were flat. (Forbes.com 8/22/07)<br />
CKE Restaurants Inc. reported combined same-store sales growth of 2.8% in October and 1.7% for the quarter ended<br />
November 5, compared to the same periods in 2006. The company’s Hardee's same-store sales rose 2.7% for the quarter,<br />
while its Carl's Jr. brand increased by 0.7%. CKE said sales at both of its brands benefited from a price increase implemented<br />
in October. Both chains also instituted an additional price boost at the beginning of November to offset higher operating costs.<br />
Total sales for the third quarter for company-owned restaurants were $273.2 million. (Yahoo! Finance 11/14/07)<br />
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Carlos O'Kelly's<br />
Headquarters<br />
1877 N. Rock Rd., Wichita, Kansas 67206 USA<br />
Tel: (316)683-2611 Fax: (316)681-2481<br />
www.carlosokellys.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 85,500 84,000 79,000<br />
Company-owned ($000) 85,500 84,000 79,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 49 49 48<br />
Company-owned 49 49 48<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,750 1,725 1,700<br />
Concept Positioning |<br />
Carlos O'Kelly's Mexican Cafe is a full-service, casual-dining restaurant chain featuring authentic Mexican food tailored to the<br />
American palate. Carlos O’Kelly’s features a relaxed, fun, family environment. The restaurants offer traditional and specialty<br />
Mexican fare, including enchiladas, burritos, chimichangas and combination dinners, as well as a dessert menu, featuring<br />
items such as fried ice cream, sopapillas and the Mayan Chocolate Snowball. The restaurant is operated by Sasnak<br />
Management Corp., a privately owned franchisee of Applebee's Neighborhood Grill & Bar. Carlos O’Kelly’s stores are 100%<br />
franchised and located in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Virginia and Wisconsin.<br />
Carlos O’Kelly’s units are mostly freestanding buildings averaging 7,000 sq. ft. The upbeat setting features a ranch-style<br />
exterior with green neon highlighting the signage, along with a colorful and bright interior design that includes a prominent bar<br />
area.<br />
The first Carlos O’Kelly’s opened in 1988 in Cedar Rapids, IA. No long-term expansion plans have been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Carlos O'Kelly's is open for lunch and dinner. The menu features a variety of both traditional and contemporary versions of<br />
Mexican cuisine. Appetizers include Chili Con Queso, Naked Nachos Grande and Fajita Cheese Crisps. Signature items<br />
include Chicken Picado, Enchilada de Monterrey, Margarita Chicken Fajitas, Navajo Tacos and Pasta Diablo. Other menu<br />
items include burgers, salads, tostadas and various entrée combinations, as well as side items, such as rice, beans and<br />
guacamole. The restaurant’s dessert menu includes Fried Ice Cream, Sopapillas and the Mayan Chocolate Snowball. There<br />
are also food special offerings throughout the year. Alcoholic beverages served include various types of margaritas, and nonalcoholic<br />
beverages include soda, hot and iced tea and lemonade. Both healthy and kid’s menus are available, as well as<br />
various catering options. <strong>Menu</strong> prices range from $1.99–$12.99. Checks average $16.87.<br />
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Personnel |<br />
Mark Rouleau, CFO<br />
Bill Stenzhorn, V.P. of Operations<br />
David Rolph, President<br />
Hugh Nicks, V.P. of Marketing<br />
David Stwalley, Executive Chef/ Purchasing<br />
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129
Carrabba's Italian Grill<br />
Headquarters<br />
2202 N. Westshore Blvd., Tampa, Florida 33607 USA<br />
Tel: (813)282-1225 Fax: (813)286-1209<br />
www.carrabbas.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 649,000 580,000 496,000<br />
Company-owned ($000) 649,000 580,000 496,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 229 200 168<br />
Company-owned 229 200 168<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,053 3,264 3,140<br />
Concept Positioning |<br />
Carrabba’s Italian Grill is a full-service Italian restaurant. A festive environment is created as fresh, handmade Italian dishes<br />
are cooked to order in a lively exhibition kitchen. It is a dinner-only concept that serves up traditional Italian favorites such as<br />
spaghetti, lasagna and manicotti, as well as grilled entrees and wood-fired pizzas. The units are 100% company owned. There<br />
are currently over 200 Carrabba’s Italian Grill locations scattered throughout the Midwest, South and East. OSI Restaurant<br />
Partners Inc. is the parent company of Carrabba’s Italian Grill.<br />
Units are either endcaps in strip shopping centers or freestanding buildings. The atmosphere is festive and entertaining,<br />
reminiscent of a traditional Italian kitchen. Each seating area features a dining room, bar and a pasta bar with exhibition<br />
cooking. The prototype includes a rooftop garden. Dark woods, large booths and tables, Italian memorabilia featuring<br />
Carraba’s family photos, authentic Italian pottery and cooking utensils add to the ambiance. Carrabba's has also instituted a<br />
curbside takeout program—Carside Carry-Out—at all locations. The restaurants are full service operations serving dinner<br />
seven days per week. Units average 6,300 sq. ft. with interior seating for 246 guests and additional patio seating outside.<br />
Carrabba's Italian Market, a recently developed spinoff of the original Carrabba’s concept is located in Publix Super Market on<br />
University Walk in Sarasota, FL. The Italian Market concept offers pizza and daily specials, but not the chain's full menu.<br />
Carrabba’s Italian Grill was founded in Houston, TX by Johnny Carrabba and Damian Mandola in 1986. In 1993, a joint<br />
venture partnership was formed with Outback Steakhouse. In 1995, that agreement was restructured, giving Outback sole<br />
ownership and development rights to the concept, outside of Texas. It also pays royalties of 1–1.5% on their units. The two<br />
original locations and development rights in Texas remain in control of its founders. In 2006, Outback Steakhouse announced<br />
a company name change to OSI Restaurant Partners Inc. The company has not disclosed any specific expansion plans for<br />
Carrabba’s.<br />
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<strong>Menu</strong> Positioning |<br />
Carrabba's Italian Grill is open for dinner seven days per week. The menu features appetizers, wood-fired pizzas, salad and<br />
soup, grilled specialties, pasta specialties and Italian classics. Signature appetizers listed in its “Antipasti” section include<br />
Zucchini Fritte, calamari, crab cakes and Grilled Brushetta. Popular entrées include Chicken Marsala—mushrooms, prosciutto<br />
and Lombardo Marsala wine sauce; 9-oz. filet with potatoes and vegetables; and Rigatoni Martino—pasta, grilled chicken,<br />
sautéed mushrooms, sundried tomatoes in a tomato cream sauce topped with ricotta salata cheese and scallions. A wide<br />
selection of pastas and Italian classics such as mussels, lasagna, Eggplant Parmesan and Veal Marsala are offered. Woodfired<br />
pizzas are another customer favorite. Desserts include tiramisu, cannoli and Sogno di Cioccolata. Full liquor service is<br />
offered. Also available is a kids’ menu—the “Bambini <strong>Menu</strong>,” featuring spaghetti & meatballs, cheese ravioli and cheese pizza.<br />
Other options include a gluten-free menu and a large party carry-out menu. <strong>Menu</strong> prices range from $3.49–$20.99. Checks<br />
average $23.50.<br />
Promotion Plans |<br />
OSI Restaurant Partners Inc. has awarded media duties for its Outback Steakhouse and Carrabba’s Italian Grill restaurants to<br />
Aegis Group’s Carat of New York. Media buying and planning for the two chains, worth $90 million, had previously been split<br />
between MPG and Doner. (Nation’s Restaurant News 10/29/07)<br />
<strong>Menu</strong> Development |<br />
Pistachios add a light, delicate flavor to both savory and sweet dishes. At Carrabba’s Italian Grill locations, patrons can finish<br />
their meal with the Cannoli allo Siciliano, crisp pastry shells filled with ricotta and chocolate-chip filling and topped with<br />
confectioner’s sugar and pistachios. Pasha in New York City menus a marinated chicken breast stuffed with pistachios,<br />
currants and rice and served over sautéed spinach with white-wine tarragon sauce. Le Titi de Paris in Arlington Heights, IL,<br />
offers guests a Warm Autumn Pear & Apple Bread Pudding with Pistachio Crème Anglaise and Bittersweet Chocolate Sorbet.<br />
(Restaurants & Institutions p17 2/07)<br />
Personnel |<br />
Bill Allen, CEO<br />
Derk Montgomery, CFO<br />
Irean Wenzel, V.P. of Purchasing<br />
William Kadow, V.P. of Operations<br />
Andi Jacobs, V.P. of Marketing<br />
News & Other |<br />
OSI Restaurant Partners Inc. will be acquired by Bain Capital Partners, Catterton Partners and Outback Steakhouse cofounders<br />
for about $3.2 billion. OSI is the owner of several brands including Outback Steakhouse, Carrabba’s Italian Grill and<br />
Cheeseburger in Paradise. The deal will close early next year and will take OSI Restaurant Partners private. (Wall Street<br />
Journal 11/07/06; NRN Daily NewsFax 11/07/06; Nation’s Restaurant News Online 11/09/06)<br />
Carrabba’s Italian Grill will celebrate its 20th anniversary on December 26. (Company Release 12/22/06)<br />
Carrabba’s Italian Grill reported for the fourth quarter ended December 31 same-store sales decreased 2.5%. (Company<br />
Release 2/1/07)<br />
OSI Restaurant Partners Inc. reported for the quarter ended March 31 same-store sales system-wide declined 0.5% at<br />
Outback Steakhouse, 1.3% at Carrabba’s Italian Grills, 0.7% at Bonefish Grills, 2.1% at Roy’s and rose 3.3% at Fleming’s<br />
Prime Steakhouse and Wine Bars. For the five weeks ended March 31, same-store sales system-wide fell 0.1% at Outback<br />
Steakhouse, 0.7% at Carrabba’s Italian Grills, 1% at Bonefish Grills, and 1.6% at Roy’s, and grew 0.7% at Fleming’s Prime<br />
Steakhouse and Wine Bars. (Company Release 4/5/07)<br />
OSI Restaurant Partners Inc. reported April same-store sales grew 1% at Outback Steakhouse, 1.1% at Carrabba’s Italian<br />
Grill, 1.9% at Fleming’s Prime Steakhouse & Wine Bar, 0.7% at Bonefish Grill and 0.8% at Roy’s. (NRN Daily NewsFax<br />
5/4/07)<br />
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OSI Restaurant Partners Inc. reported May same-store sales declined 1.4% at Outback Steakhouse, 2.1% at Carrabba’s<br />
Italian Grill, 2.0% at Bonefish Grill and 0.9% at Roy’s. Fleming’s Prime Steakhouse and Wine Bars’ same-store sales rose<br />
1.2%. (Associated Press 5/30/07)<br />
OSI Restaurant Partners, Outback Steakhouse and Carrabba’s Italian Grill restaurants have placed their media buying and<br />
planning account, worth $90 million, in review. Currently, the work is split between MPG and Doner. (OmmaComa.com<br />
6/18/07)<br />
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132
Carrows<br />
Headquarters<br />
5780 Fleet Street Suite 250, Carlsbad, California 92008 USA<br />
Tel: (760)804-5750 Fax: (760)476-5141<br />
www.carrows.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 132,000 135,952 149,213<br />
Company-owned ($000) 120,000 122,689 123,972<br />
Franchised ($000) 12,000 13,263 25,241<br />
U.S. Number of Units 95 100 116<br />
Company-owned 84 87 90<br />
Franchised 11 13 26<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,400 1,359 1,286<br />
Concept Positioning |<br />
Carrows is a full-service regional family restaurant chain specializing in traditional American meals and a variety of specialty<br />
items. Units are located throughout the Southwest and West and serve breakfast, lunch and dinner. Some locations operate<br />
24 hours a day. Carrows is owned by Zensho America Corp., along with full-service Coco’s Bakery Restaurant.<br />
There are three types of Carrows units in operation, a standard version, one with a cafe bakery and those with full liquor<br />
service. Largely freestanding, Carrows average 4,900 sq. ft. and seat 140–150 patrons. Interiors feature natural woods, soft<br />
tones of rust, green, beige and sand as well as patterned upholstery. In recent years, the chain has implemented a franchise<br />
upgrade program that includes interior painting, wall covering, carpeting, new exterior signage, paint and awnings.<br />
David Nancarrow opened the first Carrows Restaurant in Santa Clara, CA, in 1970. A second location opened in Goleta, CA,<br />
shortly thereafter. Today, more than 80% of the sites are company operated. The chain had systemwide sales in 2001 of $183<br />
million. FRD Acquisition, a former subsidiary of Advantica Restaurant Group, took control of the Carrow’s and Coco’s brands<br />
in 2002 after Advantica divested the two concepts and changed its name to Denny’s Corporation. Soon afterwards, Catalina<br />
Restaurant Group Inc. bought the Carrow’s and CoCo’s chains from FRD Acquisition. In mid-2006, Catalina Restaurant Group<br />
merged with Zensho America Corp., a subsidiary of Tokyo-based Zensho Co. Ltd., which operates 1,859 restaurants<br />
throughout Japan. No expansion plans for Carrows have been announced.<br />
<strong>Menu</strong> Positioning |<br />
Carrows' menu features breakfast, appetizers, soups and salads, Carrows favorites, sandwiches, melts, burgers, dessert and<br />
beverages. Signature recipes are reminiscent of Santa Barbara and include Southwest Crispy Rolls, Creamy Broccoli Soup,<br />
Southwest Chicken Salad, Mile High Sandwiches and Shrimp Scampi Pasta. Breakfast includes Grandma's Cinnamon Loaf<br />
French Toast and the Mega Skillet. New to the breakfast menu are the Power Bakes, which include Florentine Bake—three<br />
eggs scrambled together with spinach, tomato, onion, bacon and topped with Swiss Cheese; Rachero Bake—shredded beef<br />
with three eggs and diced green chilies, topped with ranchero sauce and Cheddar cheese; and the 3-Cheese & Bacon Bake—<br />
Cheddar, Jack and Swiss cheese, bacon, scrambled with three eggs. Restaurants serve breakfast, lunch and dinner. Senior<br />
and kids’ menus are available. Carrows also features alternative Spanish-language menus in all of its restaurants. <strong>Menu</strong> prices<br />
range between $1.79 and $9.49 for breakfast and $1.99 and $14.99 for lunch and dinner. Checks average $7.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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133
<strong>Menu</strong> Development |<br />
Carrows Restaurants has rolled out Winterfest seasonal breakfast menu for a limited time. Selections include Apple Pecan<br />
Cinnamon French Toast Combo, Country French Toast Combo, Old Fashioned Bread Pudding French Toast Combo, Winter<br />
Berry Stuffed French Toast Combo, and Strawberry Croissant French Toast Combo. (Company Website)<br />
Carrows Restaurants debuted a Winterfest dessert menu. The selections include Banana Cream Pie, Apple Pie, Fresh-Baked<br />
Winter Berry Cobbler, Mile High Chocolate Cake, Grandma’s Bread Pudding and Strawberry Cheesecake. The chain also<br />
added a Jumpy Monkey Sundae, with coffee ice cream, hot fudge, bananas, whipped cream and crunchy crumbles, topped<br />
with a cherry. (Company Website)<br />
Carrows Restaurants introduced Winterfest Seasonal Entrées from the Sea for a limited time. Available for both lunch and<br />
dinner, dishes include Shanghai Shrimp Salad, Baja Shrimp Tacos, Crispy Shrimp Skillet, Shrimp Taco Platter, Shrimp<br />
Carbonara, Blackened Steak & Crispy Shrimp and Scampi Topped Salmon Filet. (Company Website)<br />
Carrows Restaurants introduced its new Blackened Steak and Crispy Shrimp dinner. (Company Release 2/12/07)<br />
Personnel |<br />
Al Schulten, Controller<br />
Rick Hannan, V.P. of Purchasing<br />
Jim Kensinger, V.P. of Operations<br />
Samuel Borgese, President<br />
Heather Gardea, V.P. of Marketing & <strong>Menu</strong> Development<br />
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134
Carvel Ice Cream<br />
Headquarters<br />
200 Glenridge Pnt Pkw Suite 200, Atlanta, Georgia 30342 USA<br />
Tel: (404)255-3250 Fax: (404)255-4978<br />
www.carvel.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 175,000 135,500 129,400<br />
Company-owned ($000) 5,000 4,500 3,400<br />
Franchised ($000) 170,000 131,000 126,000<br />
U.S. Number of Units 599 536 488<br />
Company-owned 23 22 22<br />
Franchised 576 514 466<br />
International Sales ($000) 500 2,500 1,500<br />
International Units 2 27 15<br />
Average Sales/Unit ($000) 300 310 300<br />
Concept Positioning |<br />
Carvel Ice Cream is a quick-service ice cream chain that positions itself as “An American Icon.” Stores offer soft-serve ice<br />
cream and other frozen treats, including its frozen ice cream cakes. The chain is the first retail ice cream franchise of U.S.<br />
FOCUS Brands, a subsidiary of Roark Capital. FOCUS Brands’ portfolio also includes Cinnabon, Schlotzsky’s Deli and<br />
Seattle’s Best Coffee.<br />
Carvel's exteriors feature a rosy red awning with dark purple and bright yellow accents, while interiors have the same color<br />
scheme and feature bakery-type vertical cake display units. Most stores have counter service only. In addition, franchisees are<br />
being offered mini-stores; kiosks and portable vending cart units for expansion within heavy traffic trade areas. Equally<br />
important is its aggressive franchise development program, which focuses on development of multi-unit agreements and<br />
expansion into new markets. The company has revived its formerly disbanded franchisee committee for store owners to voice<br />
their concerns and has increased its franchisee support staff from six to 50 over the past two years. Carvel is also in the midst<br />
of an overall interior remodeling program. Franchisees are required to bank a percentage of monthly sales into an account that<br />
will be used for updating stores with the new décor.<br />
Carvel also markets its ice cream cakes in bakery sections at nearly 6,500 supermarkets. The products are produced and<br />
delivered by franchisees as well as company-owned and operated production plants. Revenues generated are shared by the<br />
franchisee (50% of sales), the supermarket (40%) and Carvel (10%). Independent vendors provide franchisees with<br />
proprietary mixed ice cream, from which Carvel’s brand is made at each store. Equipment is sold from third party vendors.<br />
In addition, Carvel has a number of concession contracts including Meadowlands Sports Complex in New Jersey,, Shea<br />
Stadium and Yankee Stadium in New York; Tropicana Field in Tampa, Universal Studios in Orlando as well as various airports<br />
and toll roads.<br />
In 1934, Thomas Carvel opened a roadside ice cream stand in Hartsdale, NY. Five years later he constructed and patented<br />
the first machine that produced a frozen confection (later known as frozen custard). In 1941, he began franchising Carvel<br />
units. Investcorp Inc. bought the company from Thomas Carvel in 1989. Roark Capital acquired the company from Investcorp<br />
in 2001 for $50 million.<br />
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135
<strong>Menu</strong> Positioning |<br />
Carvel's menu features soft and hard ice cream, available in a cup or a cone, ice cream brownies, truffles, soft drinks,<br />
sherbets, shakes, ice cream sodas, sundaes and its widely popular ice cream cakes. Ice cream drinks include Fizzlers,<br />
Carvelanches, Creammaccinos and Ultimate Thick Shakes. A variety of novelty bulk packages and take-home items, such as<br />
Sundae Dashers and Thinny Thins, are also featured. Classics line of ice cream cakes augments special occasion and<br />
character cakes. Ice cream flavors include vanilla, chocolate and sherbet, and ice cream drink flavors include strawberry,<br />
peach, raspberry, banana, peach and piña colada. Carvel's are also available in more than 8,500 supermarkets nationwide.<br />
<strong>Menu</strong> prices range from $1.99–$11.99. Checks average $4.98.<br />
<strong>Menu</strong> Development |<br />
Schlotzky’s Ltd. is testing Carvel and Cinnabon items at two Schlotzky’s restaurants in Austin, TX. The outlets will serve<br />
Carvel’s soft-serve and hand-dipped ice cream flavors in cups, cones, sundaes and shakes. Cinnabon offerings include<br />
Classic Rolls, Caramel Pecanbons, Cinnapacks and Cinnabonstix. The locations will also serve Cinnabon’s CarameLatte<br />
Chills, MochaLatta Chills and Chillattas products. (Company Release 3/29/07; NRN Daily NewsFax 3/30/07)<br />
Carvel Ice Cream rolled out ice cream cupcakes, made with moist yellow cake and soft-serve ice cream. The cupcakes feature<br />
a variety of toppings, such a hard-shell chocolate coating, milk chocolate fudge and rainbow sprinkles. The cupcakes are<br />
available as individual servings or are grouped together to form round or sheet cakes. (Yahoo! Finance 9/7/07)<br />
Franchise Activity |<br />
Schlotzky’s Ltd. was purchased by Focus Brands of Atlanta for an undisclosed amount. Focus, which is owned by Roark<br />
Capital Group, franchises and operates about 1,400 outlets of Carvel Ice Cream, Cinnabon and Seattle’s Best Coffee in the<br />
U.S., Puerto Rico and 31 international countries. Schlotzky’s has 365 franchised and company-owned outlets. (Austin<br />
Business Journal 11/20/06; Atlanta Business- ournal-Constitution 11/21/06; NRN Daily NewsFax 11/21/06; Company Release<br />
11/21/06)<br />
Personnel |<br />
Thom Gilday, CFO<br />
Rich Kamph, V.P. of Purchasing<br />
Gary Bales, President<br />
Lori Peterson, V.P. of Marketing<br />
Stan Dorsey, V.P. Research & Development<br />
News & Other |<br />
FOCUS Brands plans to test co-branded outlets of Cinnabon, Schlotzsky’s and Carvel Ice Cream in three to five corporate<br />
stores this year. If these co-branded units are successful, the company expects to offer the brands to franchisees by late 2007.<br />
Focus operates 365 Schlotzsky’s, 394 Cinnabons and 536 Carvel Ice Cream units nationwide. (QSR Magazine 2/07 p13)<br />
Carvel Ice Cream’s original store, located in New York, might be destroyed by its current owner. Current owner, Abdol Faghihi,<br />
wants to replace it with a restaurant and three retail stores. The new developments might or might not include a Carvel store.<br />
(Associated Press 8/6/07)<br />
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136
Champps Entertainment, Inc.<br />
Headquarters<br />
10375 Park Meadows Dr. Suite 560, Littleton, Colorado 80124 USA<br />
Tel: (303)804-1333 Fax: (303)804-8477<br />
www.champps.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 252,600 261,003 262,445<br />
Company-owned ($000) 209,600 218,187 220,502<br />
Franchised ($000) 43,000 42,816 41,943<br />
U.S. Number of Units 63 66 62<br />
Company-owned 50 53 50<br />
Franchised 13 13 12<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,175 4,200 4,400<br />
Concept Positioning |<br />
Champps Entertainment is a chain of casual-dining restaurants with themed sports bars. Champps has a varied menu concept<br />
and serves up traditional fare such as steaks, burgers, pasta and sandwiches in a lively and energetic atmosphere. F&H<br />
Acquisition Corp. is the parent company of Champps Entertainment. The sports themed atmosphere involves a centralized bar<br />
that boasts several TVs that project the latest sports games. Champps projects a lively and festive atmosphere and invites<br />
patrons to hold parties and other special events in its space. There is an extensive menu of appetizers, entrees, desserts and<br />
alcoholic beverages that appeal to a wide demographic. Approximately 80% of the restaurants are company owned; the<br />
remaining units are franchised. Champps Entertainment is a national chain.<br />
Units are typically freestanding buildings located in high-traffic areas such as shopping malls and megaplex movie theaters.<br />
Champps units are large, averaging 7,000–12,000 sq. ft. with seating for 250–270 customers on multiple levels. A smaller<br />
prototype operates in nontraditional sites, such as Dallas/Fort Worth International Airport. Kitchens are open for customer<br />
viewing and large screen televisions allow patrons to view sporting events. Live DJs spin background music, and karaoke is<br />
offered as an entertainment option. A red, white and blue color scheme, along with an American flag, makes up the logo that<br />
sits above the brightly lit awnings that adorn the outside of the buildings. Arcade games are also available in a separate game<br />
room. Champps-branded merchandise, including apparel and sports-related items, are sold in its separate retail shop.<br />
Founded in 1980 by Dean Vlahos, the first Champps restaurant was in St. Paul, Minnesota. Champps Entertainment<br />
completed is initial public offering in mid-1994. In 1995, Daka International Inc. announced the acquisition of Champps<br />
Entertainment in a $69 million stock swap. The merger was completed in February 1996. In mid-1997, its parent name was<br />
changed from Daka International Inc. to Unique Casual Restaurants as part of a planned spin-off by Daka when its<br />
noncommercial holdings were acquired by Compass Group PLC. In mid-1999, the corporate name was changed to Champps<br />
Entertainment Inc. to better reflect is flagship brand. In 2007, Champps Entertainment Inc. was acquired by F&H Acquisition<br />
Corp., becoming a wholly-owned subsidiary of that company. F&H is also the parent company of FOX & Hound Restaurant<br />
Group. Champps is currently focusing on expanding its presence in existing markets by opening several new company-owned<br />
units over the next several years.<br />
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137
<strong>Menu</strong> Positioning |<br />
Champps is open for lunch, dinner, snacks and Sunday brunch. The restaurant serves up a diverse menu of more than 120<br />
items including appetizers, classic entrées, soups and side salads, entrée salads, wraps, sandwiches, pasta, specialty<br />
sandwiches and burgers, desserts and beverages. Champps offers daily specials as well as separate specialty appetizers and<br />
brunch menus. Signature items include Mile High Nachos, Champps’ Cheeseburger, The Champps’ Club, Champps’ Messy<br />
Sunday and Champps Triple Chocolate Cake. Other popular menu items include Mongolian Egg Rolls—with pork, beef,<br />
mushrooms and Asian vegetables, sautéed in sesame oil, wrapped and fried; Half-Rack Baby Back Ribs—slow cooked and<br />
smothered in a special BBQ sauce served with waffle fries and coleslaw; Shrimp & Black Pepper Fettuccine—sautéed shrimp<br />
with roasted garlic, Roma tomatoes and roasted peppers in a basil pesto cream sauce; and Big Gorgonzola Burger—two<br />
eight-oz. patties on top of baby greens, sliced tomatoes and red onions with caramelized onions and melted Gorgonzola bleu<br />
cheese with French au jus. Full liquor service is available; each unit features a full bar area. Seasonal specials are available<br />
along with a Little Champps kids’ menu. <strong>Menu</strong> prices range from $3.99–$19.99. Checks average $21.<br />
<strong>Menu</strong> Development |<br />
Champps Americana debuted Wintermission Specials featuring seasonal items. The menu includes Jambalaya Pasta,<br />
Chicken Pot Pie, Crispy Chicken with Mushroom Gravy, Hearty Pot Roast, Chopped Salad, Coconut Fried Shrimp and<br />
Chocolate Bread Pudding. The chain also added winter beer, wines and cocktails, including TuacaBeri Twist, with Tuaca<br />
liqueur and Chambord; Chamborita, consisting of Sauza Extra Gold Tequila, Chambord, triple sec and mango; Samuel Adams<br />
Seasonal Draft; Rosemount Shiraz and Francis Ford Coppola Sauvignon Blanc. (Company Website)<br />
Champps launched Big Time BBQ Specials for a limited time. Selections on the menu are: • Big Ol’ Rack o’ Ribs—a full slab of<br />
slow-braised BBQ baby back ribs with a choice of three sides (campfire beans, mac & cheese, fries or coleslaw) and a<br />
Cheddar biscuit • Hog Heaven—half-slab of BBQ baby back ribs with homemade BBQ pulled pork paired with a choice of<br />
three sides and a Cheddar biscuit • BBQ Ribs & Chicken—a half-slab of slow-braised BBQ baby back ribs and a chicken<br />
breast covered in BBQ sauce, with a choice of three sides and a Cheddar biscuit • BBQ Salmon—pan-roasted salmon, lightly<br />
seasoned and coated with Southwestern BBQ sauce paired with bacon-mashed potatoes and Southwestern vegetable medley<br />
• Pulled Pork Sliders Appetizer—slow-roasted pulled pork on five bite-sized buns topped with pickles and served with a BBQ<br />
dipping sauce • Southwestern BBQ Chop House Salad—chopped salad with Southwestern BBQ pulled chicken, black-beanand-corn<br />
salsa, diced avocados, tomatoes and Cheddar cheese, topped with BBQ tortilla strips and tossed with a chipotle<br />
ranch dressing • Peach Cobbler—topped with chopped walnut topping and a vanilla ice cream. (Company Website)<br />
Personnel |<br />
John Powell, V.P. of <strong>Menu</strong> Development<br />
Steven Johnson, CEO<br />
Jim Zielke, CFO<br />
Tim Johnson, V.P. of Purchasing<br />
Fran Vavala, V.P. of Operations<br />
Rachel Phillips, V.P. of Marketing<br />
News & Other |<br />
Champps Entertainment Inc. reported for the first quarter ended October 1 a net loss of $4.2 million from a loss of $0.2 million<br />
for the same period last year. Revenues decreased 4.3% to $49.3 million from $51.5 million. Same-store sales dropped 3.9%.<br />
(Company Release 11/7/06)<br />
Chammps Entertainment Inc. is selling the company for $75 million in cash as well as assumption of its liabilities and<br />
outstanding debt. Chammps signed a letter of intent with Kinderhook Industries LLC to put up for sale all of its assets to an<br />
investment entity to be formed by Kinderhook; Chammps Chairman and CEO Michael P. O’Donnell; and Chammps CFO<br />
David D. Womack. With the sale, Chammps will remain a publicly held company. (NRN Daily NewsFax 1/12/07; Company<br />
Release 1/11/07)<br />
Champps Entertainment Inc. reported for the second quarter ended December 31 a net loss of $6.5 million from a net earning<br />
of $2.6 million for the same period last year. Revenues decreased 3.9% to $53.6 million from $55.8 million. Same-store sales<br />
fell 3.9%. (Company Release 2/6/07)<br />
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138
Champps Entertainment Inc.’s letter of intent to be purchased for $75 million by Kinderhook Industries LLC has expired.<br />
Champps did not say why the deal fell through but noted that it plans to continue to pursue a sale of the restaurant and its<br />
assets. The company said that it has received “indications of interest” from potential buyers. Champps operates and<br />
franchises 61 restaurants nationwide. (NRN Daily NewsFax 3/02/07; Company Release 3/01/07)<br />
Champps Entertainment Inc. reported for the third quarter ended April 1 a net loss of $0.6 million from a loss of $1.9 million for<br />
the same period last year. Revenues decreased 4.8% to $49.2 million from $51.7 million. Same-store sales fell 4.3%.<br />
(Company Release 5/8/07)<br />
Champps Entertainment Inc.’s board of directors ended the company’s sale process. In January, Champps signed a definitive<br />
agreement to sell itself for $75 million, plus debt. The company ended the sale process after it had several prospective buyers,<br />
but no definitive proposals that were acceptable. Instead, Champps will seek ways to increase shareholder value. (NRN Daily<br />
NewsFax 5/21/07)<br />
Champps Entertainment Inc. donated $50,000 to The Boys & Girls Club of America. The money was raised during the<br />
company’s March Mania campaign. (Nation’s Restaurant News 5/21/07 p30)<br />
Champps Entertainment Inc. is being acquired by F&H Acquisition Corp. for $74.8 million. Champps’ operates 61-units located<br />
in 21 states and 87 restaurants under the Fox & Hound and Bailey’s Pub & Grille brands. (Denver Business Journal Online<br />
7/5/07; NRN Daily NewsFax 7/6/07)<br />
Champps Entertainment reported for the fourth quarter ended July 1 a net loss of $0.7 million, compared to a loss of $2 million<br />
for the same period last year. Revenues declined 4.7% to $47.1 million from $49.4 million. Same-store sales fell 4%. For the<br />
year, the company reported a net loss of $7.9 million, compared to net income of $1.6 million the previous year. Revenues<br />
decreased 4.3% to $198 million from $207 million. (Company Release 9/4/07)<br />
Champps Entertainment Inc. agreed to provide F&H Acquisition Corp. and its equity sponsors additional time to complete the<br />
financing of F&H’s proposed acquisition of Champps. Stockholders originally were to meet on September 28, and, assuming<br />
they approve the transaction, were planning to complete the deal on October 1. Because F&H asked for additional time, the<br />
closing was postponed until October 22. (Company Release 9/24/07)<br />
The Champps Entertainment Inc. sale was completed on October 22. Last Call Acquisition Corp., a wholly owned subsidiary of<br />
F&H Acquisition Corp., completed the merger, which made Champps a wholly owned subsidiary of F&H. Former Champps<br />
shareholders are entitled to receive $5.60 in cash for each of their shares. (Bizjournals.com 10/22/07)<br />
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139
Charley's Grilled Subs<br />
Headquarters<br />
2500 Farmers Dr. Suite 140, Columbus, Ohio 43235 USA<br />
Tel: (614)923-4700 Fax: (614)923-4701<br />
www.charleys.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 140,694 131,000 115,000<br />
Company-owned ($000) 13,759 8,500 7,500<br />
Franchised ($000) 126,935 122,500 107,500<br />
U.S. Number of Units 281 279 230<br />
Company-owned 26 18 15<br />
Franchised 255 261 215<br />
International Sales ($000) 13,679 14,500 10,000<br />
International Units 25 29 20<br />
Average Sales/Unit ($000) 532 515 500<br />
Concept Positioning |<br />
An alternative to limited-service burger and pizza places, Charley's Grilled Subs offers Philly cheesesteak sandwiches,<br />
specialty grilled sandwiches, made-to-order deli salads, hand-cut gourmet french fries and freshly squeezed lemonade. Gosh<br />
Enterprises owns the chain, and is also the parent company of Wholly Cow, a quick-service chain specializing in all-natural ice<br />
cream. Charley’s is currently exploring opportunities to launch co-branded units with Wholly Cow. Charley’s Grilled Subs has<br />
approximately 305 units in operation throughout the U.S., Canada, Europe and Asia.<br />
Although primarily located in food courts, units also operate as inline units and freestanding sites as well. Charley’s has also<br />
focused expansion in nontraditional locations such as military bases and airports. In addition, the company is developing new<br />
endcap restaurants in retail strip centers. Where seating is available, 40–60 guests are accommodated. Inline units measure<br />
700–800 sq. ft. while freestanding units average 1,500–2,000 sq. ft. Interior and exterior decor elements include a dominant<br />
use of green and red colors. Marketing promotions generally include free samples of food and free cups.<br />
Charley Shin opened the first Charley's Grilled Subs, originally called Charley's Steakery, in Columbus, OH, in 1986. Five<br />
years later, the company began franchising. Gosh Enterprises acquired Charley’s in 2005 for an undisclosed sum. Additional<br />
Charley’s units are scheduled to launch as part of Gosh’s aggressive development plans for the chain. Overall retail-unit<br />
franchising is growing at nearly 50% annually. Long-term growth plans for Charley’s call for a total of 3,000 units nationwide.<br />
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140
<strong>Menu</strong> Positioning |<br />
The menu at Charley's Grilled Subs features grilled sub-style sandwiches for breakfast, lunch and dinner. The chain is known<br />
for its Sirloin CheeseSteaks, Grilled Chicken, Italian Deli Deluxe and Deli Favorites line of sandwiches. Also menued are<br />
soups, salads, specials and combos, fries and beverages. The menu begins with hot breakfast sandwiches that pair egg with<br />
cheese and bacon, ham or sausage. For lunch and dinner, signature menu items include Philly CheeseSteak—steak, grilled<br />
onions and provolone cheese; Steak Italiano—sirloin steak, Genoa salami, provolone cheese, lettuce, tomato and sweet<br />
roasted red pepper sauce; BBQ Cheddar Steak—sirloin steak, grilled onions, tangy BBQ sauce, Cheddar cheese, lettuce and<br />
tomato; and the Ultimate Turkey Club—turkey, ham, bacon, Cheddar cheese, lettuce, tomato and mayonnaise.. Charley’s also<br />
promotes a Fresh & Healthy menu line that includes its Chicken Philly, Chicken Teriyaki, Turkey Breast, Buffalo Chicken and<br />
Veggie Delight sandwiches. No alcohol is served Kids’ meal deals are available. <strong>Menu</strong> prices range from $1.99–$7.29. Checks<br />
average $5.<br />
Personnel |<br />
Chung Zhoe, Director of <strong>Menu</strong> Development<br />
Betsy Berman, Director of Marketing<br />
Kyung Chung, Director of Purchasing<br />
Charley Shin, CEO<br />
Charley Shin, CFO<br />
Mike Link, V.P. of Operations<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
141
Charlie Brown's Steakhouses<br />
Headquarters<br />
1450 Route 22 West, Mountainside, New Jersey 07092 USA<br />
Tel: (908)518-0080 Fax: (908)518-1509<br />
www.charliebrowns.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
Chain Brands<br />
Bugaboo Creek Steak House<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 131,250 118,000 107,000<br />
Company-owned ($000) 131,250 118,000 107,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 55 50 45<br />
Company-owned 55 50 45<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,600 2,500 2,300<br />
Concept Positioning |<br />
Charlie Brown's Steakhouse is a full-service steakhouse chain serving lunch and dinner seven days a week. Located<br />
throughout New Jersey, New York and Pennsylvania, Charlie Brown's is popular for its aged steaks, bountiful salad bar and<br />
extensive wine and beer selection.<br />
Charlie Brown's are freestanding restaurants, usually converted from old restaurants. Units average 6,000–6,500 sq. ft. with<br />
seating for 175 guests in the main dining area and 40 seats in the cocktail lounge area. The decor varies, but common<br />
elements are wood-paneled interiors, working fireplaces and antiques and other objects representing a broad spectrum of<br />
popular 20th century American culture. The result is a casual atmosphere with pub-like ambiance.<br />
In early 1990, 85% of Restaurant Associates was acquired by Kyotaru Co. Ltd., Tokyo, and then in fall 1996, management of<br />
Restaurant Associates reacquired the company. In 1997, the chain was acquired from Restaurant Associates Corp. by Castle<br />
Harlan Partners III for $50.4 million. In 2005, Castle Harlan announced its intent to sell Charlie Brown's to Trimaran Capital<br />
Partners of New York for $140 million.<br />
<strong>Menu</strong> Positioning |<br />
Charlie Brown’s menu features separate menus for lunch and dinner, featuring appetizers, soups and salads, prime rib, aged<br />
steaks and chops, combos, sides, chicken, ribs and seafood. Its lunch menu features 12 Express lunch items like Pot Roast,<br />
Crispy Chicken Spring Rolls, Chicken Parmigiana Sandwich and Penne Pasta with Grilled Veggies. Popular entrées for dinner<br />
include: Shrimp Pot Stickers—six shrimp and vegetable filled wonton noodles, steamed and served with soy-citrus dipping<br />
sauce; Wild Wild Mushroom Prime Rib—10-oz. boneless prime rib topped with a special blend of wild mushrooms, garlic and<br />
wine; Hibachi Chicken Breast—skinless, boneless breast of chicken marinated in a light herb dressing, served with broccoli;<br />
and Stuffed Flounder—filets stuffed with lump crabmeat and topped with dill butter. A kids’ menu is available. Full liquor<br />
service is available, with a wide variety of beer, wine and spirits. <strong>Menu</strong> prices range from $3.99–10.99 for lunch; Express lunch<br />
priced at $5.99, and includes entrée and 2 sides, and $3.99–$20.99 for dinner. Checks average $8.25 for lunch and $17 for<br />
dinner.<br />
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142
<strong>Menu</strong> Development |<br />
Charlie Brown’s Steakhouse added Spring Specials for a limited time. Options included Prime Santa Fe Ranch Steak, a 10-oz.<br />
USDA Prime Certified Angus beef steak finished with a Tex Mex garden salsa and served with a side of tortilla chips and<br />
spring vegetable medley ($12.99); Mango Shrimp Appetizer, grilled shrimp glazed in sweet mango habanera sauce and<br />
finished with mango salsa ($6.99); Chicken Caprese ($9.99); Sweet Sixteen Coconut Shrimp Platter ($11.99); Grilled<br />
Swordfish topped with pineapple salsa ($12.99); and Teriyaki Steak and Shrimp ($14.99). (Company Website)<br />
Personnel |<br />
Russell D'Anton, CEO<br />
David Dick, CFO<br />
Michael Mulligan, V.P. of Purchasing<br />
Craig Godfrey, V.P. of Operations<br />
Amy Parker, V.P. of Marketing<br />
Michael Mulligan, V.P. Research & Development<br />
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143
Chart House<br />
Headquarters<br />
1510 West Loop South, Houston, Texas 77027 USA<br />
Tel: (713)850-1010 Fax: (713)850-7205<br />
www.chart-house.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 105,000 107,000 103,500<br />
Company-owned ($000) 105,000 107,000 103,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 24 26 25<br />
Company-owned 24 26 25<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,300 4,200 4,050<br />
Concept Positioning |<br />
Chart House restaurants offer an upscale, full-service dining experience. The concept specializes in fresh seafood, including<br />
seasonal fresh fish, shrimp and other seafood entrees. The atmosphere provides a fine-dining experience with waterfront<br />
views, attracting an upwardly mobile adult clientele. Chart House is open for lunch, dinner and weekend brunch. Landry’s<br />
Restaurants Inc. is the parent company of Chart House, which does not franchise. There are 25 Chart House locations across<br />
the U.S.<br />
Chart House units capitalize on the attractiveness of a unique natural site or historic building. Generally located near lake<br />
shores, sea coasts or mountains and within major metropolitan areas. Units range from 4,600–32,000 sq. ft. (with an average<br />
of 8,950) and seat 176–890 (average is 287) persons. Exteriors of its restaurants range from a restored 1887 Victorian<br />
boathouse on Coronado Island in San Diego Bay to a modern three-tiered glass restaurant in Philadelphia overlooking the<br />
Delaware River. The chain underwent an extensive remodeling program, and in recent years, some 80% of the system has<br />
been given a new, more contemporary decor.<br />
The first Chart House restaurant was opened in Aspen, CO, in 1961 by Joey Cabell and Buzzy Bent. In 1987, the company<br />
acquired Paradise Bakery and sold it in late 1995. In 1992, it created a license agreement for the Islands hamburger chain to<br />
develop them nationwide and in early 1996, sold its majority rights to concentrate solely on the Chart House brand. In mid-<br />
1997, financier Sam Zell’s Equip Group Investments, Inc. acquired some 29% of the outstanding shares of Chart House stock.<br />
In 2002, Landry’s Restaurants acquired the Chart House chain. Chart House is considered Landry’s most upscale concept.<br />
The company’s other brands include its flagship concept, Landry’s Seafood House, as well as casual-dining themed-restaurant<br />
chain Rainforest Café. Landry’s also owns the Golden Nugget Casino in Las Vegas. The company has not disclosed any longterm<br />
expansion plans for Chart House.<br />
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144
<strong>Menu</strong> Positioning |<br />
Chart House offers two menus for lunch and dinner, both of which feature appetizers, soups and salads, daily fresh fish<br />
selections, fresh fish specialties, shrimp and seafood, crab and lobster, prime rib, steak and chicken and sides. <strong>Menu</strong> items<br />
change daily depending on fresh items available and most items rely on grilled and broiled preparations that are enhanced by<br />
sauces. Its signature items are fresh fish and seafood entrées including Coconut Crunchy Shrimp, Sesame Crusted Salmon,<br />
Pan Seared Sea Scallops, Spiced Yellowfin Ahi, Australian Lobster Tail & Alaskan King Crab Legs. Chart House also offers<br />
steaks, prime rib, chicken and pasta entrées as well as an elaborate salad bar. Some units also have a seafood raw bar, which<br />
offers various appetizers, including oysters, clams, lobster and shrimp. Side items include traditional offerings like steamed<br />
spinach, baked potatoes and rice pilaf. Its signature dessert item is Hot Chocolate Lava Cake featuring Godiva chocolate<br />
liqueur. Full liquor service is available and is noted for its selection of vintage wines. <strong>Menu</strong> prices range from $2.99–$43.99.<br />
Checks average $41.<br />
<strong>Menu</strong> Development |<br />
Chart House introduced its new Shrimp the World Over menu. The menu features Baked Shrimp Tamale, Shrimp di Parma,<br />
Phoenix Shrimp with Thai Chili Sauce and Shrimp Versailles én Puff Pastry. The dishes are available for a limited time.<br />
(Company Website 3/27/07)<br />
Personnel |<br />
Toni Niece, Director of Marketing<br />
Joe Leahy, Director of Purchasing<br />
Jefferey Cantwell, S.V.P. of Development<br />
Tilman J. Fertitta, CEO<br />
Rick Liem, CFO<br />
Richard Ervin, E.V.P. of Operations<br />
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145
Checkers Drive-In Restaurants<br />
Headquarters<br />
4300 W. Cyprus St. Suite 600, Tampa, Florida 33607 USA<br />
Tel: (813)283-7000 Fax: (813)283-7001<br />
www.checkers.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 353,000 338,400 310,000<br />
Company-owned ($000) 85,000 88,400 90,000<br />
Franchised ($000) 268,000 250,000 220,000<br />
U.S. Number of Units 444 450 417<br />
Company-owned 102 105 107<br />
Franchised 342 345 310<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 790 775 720<br />
Concept Positioning |<br />
Checkers Drive-In Restaurants operates and franchises quick-service hamburger restaurants. Checkers offers a menu of<br />
hamburgers, fries, hot dogs, beverages and shakes. Burgers are made-to-order and the chain's objective is to serve each<br />
customer within 30 seconds of arrival at a drive-thru window.<br />
All of the company’s more than 800 units are based on 1950's diner and art deco theme. Black-and-white checkerboard tile,<br />
glass blocks and a protective drive-thru cover supported by red columns add to the ambiance. Most units also have an<br />
adjacent picnic table area with canopy tables and benches. A few have added inside seating. Each building, called a<br />
hamburger plant by Checkers, is a small (14 ft. x 54 ft.) modular building that can be moved, if the need arises. Units are<br />
freestanding and average 760–980 sq. ft., offering both drive-thru and walk-up service. Virtually all units are modular and are<br />
built at a Checkers-owned fabrication plant. Installation takes as little as nine days. Most are double drive-thrus and permit two<br />
cars, on opposite sides of a single building, to be served at the same time. Units are generally open 12–15 hours per day,<br />
seven days a week, with new hours established in 2007 that allows most locations to stay open until midnight or later on the<br />
weekend<br />
Checkers was founded in Mobile, AL, in 1986 by Jim Mattei, a former Wendy's franchisee and an Alabama real estate<br />
developer, and Mark Reed, a lawyer and long-time partner of Mattei. The company later moved to Clearwater, FL, and now<br />
headquarters in Tampa, FL. In late 1991, Checkers issued its first public stock offering. In 1993, it acquired K.C. Zipps, Inc. of<br />
Kansas City, MO, and converted all of the units to Checkers. In 1996, CKE Restaurants invested $20 million in Checkers. In<br />
1999, CKE merged Checkers and Rally’s, Inc. into a single company. In 2002, after two years of selling many of its stores to<br />
franchisees, CKE sold its remaining holdings in Checkers. Approximately 30% of Checkers restaurants are company-owned,<br />
and further growth will come via franchising. In 2006, Checkers agreed to be purchased by an affiliate of Wellspring Capital<br />
Management LLC for $188 million. Later that year, Checkers merged with Taxi Holding Corp. for $172 million dollars in cash<br />
and the assumption of an undisclosed amount in debt. In fall of 2007, Checkers secured a deal to develop 20 new restaurants<br />
in the Las Vegas area with new franchisee partners.<br />
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146
<strong>Menu</strong> Positioning |<br />
Checkers' quick-service menu features burgers, chicken and fish, hot dogs, fries and drinks. Its signature menu items include<br />
the brand-new Big Cheesy Double, ¼-lb. Champ Burger, Checkerburger, Big Buford, NASCAR Burger, Fish Sandwich, Spicy<br />
Chicken Sandwich, and All Beef Hot Dogs, with or without chili and cheese. Twelve value meals are offered and include fries<br />
and a beverage. A kids’ menu is available. <strong>Menu</strong> prices range from $1.29–$3.09 for menu items and $3.59–$5.89 for value<br />
meals. Checks average $4.<br />
Expansion Plans |<br />
Checkers Drive-In opened its first Minnesota store in West St. Paul on November 20. The new unit was opened with<br />
franchisee Check of Minnesota Inc. (Franchising.com 11/26/07)<br />
Promotion Plans |<br />
Checkers Drive-In Restaurants Inc. has introduced a new promotion starring “Rapcat,” a puppet dressed in a basketball-style<br />
jersey. In conjunction with the promotion, the chain distributed takeout bags that resembled the jersey and had cutaway holes<br />
for legs and a tail, which allowed customers to dress their cats in the bags. Customers could shoot a video or digital photo of<br />
the cats wearing the Rapcat Jersey Bag and then upload them onto a special website. Checkers has been criticized by the<br />
animal services department of Florida’s Hillsborough County, where it is headquartered. The department said that stuffing a<br />
cat into the bag was animal cruelty and that anyone doing so was subject to felony charges. The company stands by the<br />
promotion and says that there is a warning on the bag. (Nation’s Restaurant News Online 3/05/07)<br />
Checkers Drive-In Restaurants Inc. will offer Dale Earnhardt Sr. commemorative cups at its Rally’s Hamburgers and Checkers<br />
locations. The cups will be available through the end of April. The 42-oz. cups tied into a documentary about the NASCAR<br />
driver, entitled “Dale.” (Nation’s Restaurant News 4/24/07)<br />
<strong>Menu</strong> Development |<br />
Checkers introduced Steakhouse Double Cheddarburger, featuring a Double Cheddarburger with A.1 Steak Sauce, bacon,<br />
lettuce, pickles and onions on a toasted sesame bun. The item is available for a limited time. (Company Website)<br />
Checkers added a Western BBQ Cheeseburger, with BBQ sauce, American cheese and a battered onion ring. The item sells<br />
for 99¢ at participating locations. (Company Website)<br />
Checkers and Rally’s rolled out Chicken and Fish Screamer sandwiches for a limited time. The sandwiches are served with<br />
sweet-and-spicy Screamer sauce, American cheese, lettuce, pickles and onions on a toasted sesame bun. Two sandwiches<br />
are priced at $3. (Nation’s Restaurant News p20 3/12/07)<br />
Checkers introduced three sandwiches for a limited time through the spring. The sandwiches, featuring a bacon double<br />
cheeseburger, a cheeseburger and a bacon spicy chicken sandwich, are a part of the Southwest Ranch line. All three<br />
sandwiches have a chipotle-ranch sauce. The chicken sandwich is not available at all locations. Prices vary at each unit.<br />
(Nation’s Restaurant News 4/24/07)<br />
Checkers added for a limited time an All-American Double Cheddar Melt, with two all-beef patties topped with grilled onions,<br />
mayonnaise, Cheddar cheese sauce and American cheese served on toasted sourdough bread. Customers can also add<br />
bacon to the item. (Company Website)<br />
Checkers and Rally’s debuted the Big Cheesy Double, a double cheeseburger with American, pepper Jack and creamy<br />
Cheddar cheese sauce, topped with diced red onions, pickles, ketchup and mustard and served on a toasted sesame-seed<br />
bun. (Franchising Online 10/22/07)<br />
Franchise Activity |<br />
Checkers Drive-In Restaurants inked a deal with a franchise group to open five locations in Chicago over the next five years.<br />
The franchisee expects to open the first store later this year. At one point, Checkers had 25 outlets in the state, 19 of which<br />
were in Chicago. The majority of those units were closed in the 1990s. The chain currently operates one location in the city<br />
and three elsewhere in the state. Checkers plans to open 100 new U.S. restaurants in 2007, mainly in the East and Midwest.<br />
(Chicago Sun-Times 1/12/07)<br />
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Checkers has signed a franchise agreement to develop 20 new restaurants in Las Vegas. This marks Florida-based Checkers’<br />
first franchise deal in Nevada and is part of the chain’s strategy to expand in the Western states. (QSR Magazine Online<br />
10/4/07)<br />
Personnel |<br />
Enrique Silva, CEO/President<br />
Janette McDugald, CFO<br />
Adam Noyes, V.P. of Purchasing<br />
Adam Noyes, V.P. of Operations<br />
Terri Snyder, E.V.P./ CMO<br />
Ryan Joy, Director of Brand Development<br />
Checkers Drive-In Restaurants Inc. named Enrique “Rick” Silva president and chief executive officer. Previously, Silva served<br />
in several leadership roles for Burger King. (Marketwire.com 2/15/07)<br />
News & Other |<br />
Checkers Drive-In Restaurants Inc. has converted all of its Detroit-area Rally’s Hamburgers to the Checkers banner. The<br />
change in names has been an ongoing process for the company. Rally’s currently represents 44% of the company’s 800 units.<br />
(NRN Daily NewsFax 1/22/07)<br />
Checkers Drive-In is reviewing its $35 million advertising account. The chain recently split with its former advertising agency,<br />
Amalgamated. (OmmaComa.com 6/18/07)<br />
Checkers Drive-In Restaurants plans to keep most branches of its Checkers and Rally’s Hamburgers drive-thru chains open<br />
until midnight or later. Checkers operates and franchises more than 800 twin-lane drive-thrus in 28 states and the District of<br />
Columbia. (NRN Daily NewsFax 6/19/07)<br />
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148
Cheddar's Casual Cafe<br />
Headquarters<br />
6600 E. Campus Circle Drive Suite 560, Irving, Texas 75063 USA<br />
Tel: (214)596-6700 Fax: (972)871-0679<br />
www.cheddars.biz<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 205,000 195,000 165,300<br />
Company-owned ($000) 100,000 93,000 76,000<br />
Franchised ($000) 105,000 102,000 89,300<br />
U.S. Number of Units 57 52 47<br />
Company-owned 28 25 22<br />
Franchised 29 27 25<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,900 3,950 3,800<br />
Concept Positioning |<br />
Cheddar’s Casual Café is a full-service, casual-dining chain that specializes in homemade food in an upscale, comfortable<br />
environment at reasonable prices. The chain is privately held and operates 57 locations in the Midwest, South and North<br />
Dakota, 29 of which are franchised.<br />
Units are freestanding averaging 7,800 sq. ft. seating approximately 250 patrons in the midst of a contemporary and<br />
unassuming décor. The exterior is lined with green neon lights with outdoor seating.<br />
Cheddar’s Casual Café was founded in 1978 in Arlington, TX, by college friends Aubrey Good and Doug Rogers, president<br />
and chief operating officer. The company has expanded every year of its existence. In 2006, Cheddar’s parent company,<br />
Brazos Restaurant Holding Co. LLC, which also operated the seven-unit Fish Daddy’s chain, was acquired by private equity<br />
firm Catterton Partners and venture capital firm Oak Investment Partners. Terms were not disclosed. Currently, there are no<br />
major expansion plans for the chain.<br />
<strong>Menu</strong> Positioning |<br />
Cheddar's Casual Café is open for lunch and dinner and features appetizers, salads, homemade soups, sandwiches, chicken,<br />
steak, fish, classic entrées, burgers, sides, desserts and beverages. Its signature entrées include Key West Chicken &<br />
Shrimp—marinated chicken breast topped with blackened shrimp and pineapple pico de gallo; Grilled Tilapia with Mango<br />
Salsa—tilapia topped with mango salsa and blackened shrimp; Honey Barbecue Baby Back Ribs; and the Baked Spasagna—<br />
linguine baked in Alfredo sauce and four chesses, topped with either meat sauce, Alfredo or marinara sauce. Appetizer<br />
specials include Baked Potato Soup and Chicken Tortilla Soup. Sides range from green beans and Broccoli Cheese Casserole<br />
to French fries and seasoned rice. Full liquor service is available. A kids' menu is available. <strong>Menu</strong> prices range from $5.99–<br />
$12.99. Checks average $12.<br />
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149
Personnel |<br />
Rich Schneider, Executive Chef<br />
Peter Colo, Controller<br />
Rick Payne, Director of Purchasing<br />
Greg Good, V.P. of Operations<br />
Doug Rogers, President<br />
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150
Cheeburger Cheeburger<br />
Headquarters<br />
15951 McGregor Blvd., Ft. Myers, Florida 33908 USA<br />
Tel: (239)437-1611 Fax: (239)437-1512<br />
www.cheeburger.com<br />
Ownership: Private<br />
Segment: Full Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 76,500 50,000 50,000<br />
Company-owned ($000) 1,500 50,000 50,000<br />
Franchised ($000) 75,000 - -<br />
U.S. Number of Units 63 45 46<br />
Company-owned 1 45 46<br />
Franchised 62 - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,330 1,300 1,275<br />
Concept Positioning |<br />
Cheeburger Cheeburger is a full-service hamburger chain, serving the traditional fare of an American diner. The menu is<br />
anything but typical, however; Cheeburger Cheeburger prides itself on its huge burgers, dozens of cheeses and toppings, and<br />
more than 100 different varieties of fresh milkshakes, malts, ice-cream floats and sodas. The chain is privately held and<br />
operates 45 units in Alabama, Colorado, Maryland, Michigan, Florida, Georgia, Louisiana, Nebraska, New Jersey, New York,<br />
North Carolina, Ohio, Pennsylvania and Virginia. All of the restaurants are company-owned.<br />
Usually located in strip malls, units are between 1,600 and 2,200 sq. ft., seat approximately 80 guests and offer takeout. Units<br />
have a retro 1950s look that includes booths, pony-tailed employees and 1950s music broadcast throughout the dining room.<br />
Families make up a large portion of the clientele.<br />
Cheeburger Cheeburger was introduced in Sanibel Island, FL, in 1986. The restaurant is now looking for franchisees in new<br />
markets including California, Illinois and Indiana. The concept is also expanding into new venues, such as airports and other<br />
nontraditional locations.<br />
<strong>Menu</strong> Positioning |<br />
Cheeburger Cheeburger’s menu items are all made by hand with fresh ingredients, right down to the hand-sliced tomatoes<br />
and onions. The menu offers burgers, salads, sandwiches, platters, sides, and shakes and malts. French fries are made from<br />
scratch with large potatoes that are sliced with the skins left on. Similarly, onion rings are prepared in-house with freshly sliced<br />
onions that are dipped in a secret batter. The “frings” are a combination of french fries and onion rings. Fries, frings and onion<br />
rings are all fried in cholesterol-free peanut oil. The concept’s high-quality beef burgers are the stars of the menu, with fresh<br />
premium lean ground beef. Relying on the natural flavors of the beef, Cheeburger Cheeburger adds nothing to the meat, not<br />
even salt or pepper. Favorite burgers include the Semi-Serious, the Serious, the Delirious and the Classic. All burgers are<br />
topped with a choice of American, blue, feta, Cheddar, Swiss, jalapeño, Jack, mozzarella and provolone cheeses, but<br />
customers can opt for no cheese. More than 20 toppings are available, from standard lettuce and pickles to artichoke hearts<br />
and sundried tomatoes. Burgers can be accompanied by old-fashioned egg creams; ice cream sodas in vanilla, chocolate,<br />
strawberry and black-and-white; and root beer or cola floats. Kids’ menu is also available and features sandwiches such as<br />
grilled cheese and peanut butter and jelly. <strong>Menu</strong> prices range from $4.59–$10.29. Checks average $11.<br />
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151
Expansion Plans |<br />
The original Cheeburger Cheeburger location moved a half mile away from its original location on Sanibel Island, FL, to the<br />
Tahitian Gardens Shopping Center. Cheeburger Cheeburger also opened a location in the Tucson airport and a unit in Jensen<br />
Beach, FL, in the Treasure Coast Square Mall. (Company Website 8/24/07)<br />
<strong>Menu</strong> Development |<br />
Cheeburger Cheeburger is offering its new Shake-A-Soda. The soda is shaken right at the table and is available in 20 flavors.<br />
In addition, the chain is now serving Creekstone Black Angus Beef burgers. (Company Website 8/24/07)<br />
Franchise Activity |<br />
Cheeburger Cheeburger franchisees Richard, Sylvia, Marty and Michael Bloom opened a location in Bradenton, FL. The unit<br />
is located at the Twelve Oaks Shopping Plaza. In addition, Betty Davis and Angie Bowman opened a location in Orlando, FL;<br />
Paul Vanderwoude opened a location in Chadds Ford, PA; Scott Satren opened a location in San Diego, CA; Anthony Patti,<br />
Anthony P. Patti and Pasquale Patti opened a location in Providence, NJ; Howard and Marti Soll opened a unit in St. Louis,<br />
MO; Laura and Brian Switalski opened a unit in Birmingham, MI; Mark and Kelly Shuffield opened a unit in Little Rock, AR;<br />
Dan and Michelle Wilger opened a location in Jacksonville, FL; Rob and Lynda Miller opened a location in Lone Tree, CO;<br />
Harold Autry and Aaron Benjamin opened a unit in Columbia, MD; and Nicolette Hinderliter opened a location in Buffalo, NY.<br />
Also, the chain’s only location in Ohio was closed. The chain has begun to look for a new franchisee for central Ohio.<br />
(Company Website 8/24/07; Columbusdispatch.com 8/14/07)<br />
Personnel |<br />
Jeff Jablow, Director of <strong>Menu</strong> Development<br />
Carol Barbato, Purchasing Director<br />
Jul Friez, V.P. of Finance<br />
Bruce Zicari, CEO<br />
Jul Friez, V.P. of Operations<br />
Bob Wright, V.P. of Marketing<br />
News & Other |<br />
Cheeburger Cheeburger now has an option to buy “Good Times Gift Cards” online. The cards come in any denomination the<br />
customer chooses. (Company Website 8/24/07)<br />
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152
Cheeseburger in Paradise<br />
Headquarters<br />
2202 N. Westshore Blvd 5th FL, Tampa, Florida 33607 USA<br />
Tel: (813)282-1225 Fax: (813)282-1209<br />
www.cheeseburgerinparadise.com<br />
Ownership: Private<br />
Segment: Full Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 120,000 74,000 42,000<br />
Company-owned ($000) 120,000 74,000 42,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 38 27 10<br />
Company-owned 38 27 10<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,900 4,000 3,850<br />
Concept Positioning |<br />
Famed singer Jimmy Buffet's song "Cheeseburger in Paradise" was the inspiration for this full-service, casual-dining<br />
restaurant. Aside from its signature burger, the island-themed Cheeseburger in Paradise serves up traditional American<br />
cuisine, fresh fish entrees and house specialties, all prepared with a Caribbean flair. Although the concept draws in a wide<br />
demographic of diners, including families with children, the restaurant is most popular with twenty- and thirty-somethings for its<br />
expansive drink menu, energetic tiki bar, live music, special events and karaoke. Cheeseburger in Paradise is owned by OSI<br />
Restaurant Partners, Inc., which operates all of its units. Cheeseburger in Paradise is a national chain.<br />
Units are freestanding structures located primarily in suburban areas and built in the Key-West style, with a weathered wood<br />
and tin water tower, brightly-painted wood and latticework reminiscent of the Caribbean. Units average 6,500 sq. ft. with<br />
seating for 250. Seating is available in the main dining area, the popular tiki bar and on an outdoor patio at each location. The<br />
interior design features an island décor, with nautical sports items scattered throughout the restaurant. Bright colors of teal and<br />
orange complement an assortment of textures, including weathered woods, sailcloth, thatch, eucalyptus poles, bamboo and<br />
reed board. Tabletops are covered with an assortment of photographs of tropical water scenes.<br />
Cheeseburger in Paradise was founded in 2002. The restaurant is operated by Outback Steakhouse Inc., in partnership with<br />
Margaritaville Holdings Inc. In 2006, Outback Steakhouse announced a company name change to OSI Restaurant Partners,<br />
Inc. The company also announced the launch of new store locations in Delaware, Indiana, Florida and North Carolina.<br />
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153
<strong>Menu</strong> Positioning |<br />
Cheeseburger in Paradise is open for lunch and dinner, offering casual-dining favorites with a tropical twist. The menu offers a<br />
variety of options, including appetizers, soups, salads, burgers, sandwiches and entrées. Popular appetizers include Bayou<br />
Crab and Spinach Dip, the Carnivorous Habits Platter and Tropical Chicken Satay. Signature entrée items include N'Awlins<br />
BBQ Shrimp, Mini-Cheeseburgers, Costa Rican Skirt Steak Salad, the “Not Too Particular, Not Too Pressed” burger, Son of a<br />
Son of a Sailor Salad, El Cubano sandwich, Grilled Caribbean Jerk Chicken, BBQ Jerk Ribs and Blackened Tilapia. Desserts<br />
include Chocolate Nachos, Havana Banana Chocolate Chip Cake and Key Lime Pie. An extensive beverage menu features a<br />
variety of frozen drinks, including margaritas and piña coladas, as well as draft beer. Non-alcoholic beverages include soda<br />
and milkshakes. A kids menu is also available, and features items such as Flyin' Chicken Fingers, Captain Mac N’ Cheese and<br />
First Mates Plates. There are lunch and gluten-free menus as well. <strong>Menu</strong> prices range from $2.45–$14.95. Checks average<br />
$12.<br />
Personnel |<br />
Tom Kempsey, Culinary Director<br />
Irene Wenzel, S.V.P. of Purchasing<br />
A. William, III Allen, CEO<br />
Dirk A. Montgomery, CFO<br />
Paul Avery, COO<br />
Jody Bilney, CMO<br />
News & Other |<br />
OSI Restaurant Partners Inc. will be acquired by Bain Capital Partners, Catterton Partners and Outback Steakhouse cofounders<br />
for about $3.2 billion. OSI is the owner of several brands including Outback Steakhouse, Carrabba’s Italian Grill and<br />
Cheeseburger in Paradise. The deal will close early next year and will take OSI Restaurant Partners private. (Wall Street<br />
Journal 11/07/06; NRN Daily NewsFax 11/07/06; Nation’s Restaurant News Online 11/09/06)<br />
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154
Cheesecake Factory, The<br />
Headquarters<br />
26901 Malibu Hills Road, Calabasas Hills, California 91301 USA<br />
Tel: (818)871-3000 Fax: (818)871-3100<br />
www.thecheesecakefactory.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,287,000 1,117,743 916,375<br />
Company-owned ($000) 1,287,000 1,117,743 916,375<br />
Franchised ($000) - - -<br />
U.S. Number of Units 123 111 93<br />
Company-owned 123 111 93<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 11,000 11,000 11,100<br />
Concept Positioning |<br />
The Cheesecake Factory is a chain of full-service casual-dining restaurants known for its extensive menu and its thick, graham<br />
cracker-crust cheesecake. The publicly held chain operates 123 company-owned units across the U.S.<br />
Units vary in décor but all have large, airy eating areas and contemporary open kitchens. Units range from 5,400–17,300 sq.<br />
ft., with the average size around 11,000 sq. ft. with seating for more than 300 patrons. Most locations also offer outdoor<br />
seating. All are located in and around large metropolitan areas with dense populations and above-average income levels.<br />
Takeout service is available.<br />
David Overton founded The Cheesecake Factory in 1978 in Beverly Hills, CA, building on the cheesecake business his<br />
parents had opened in 1971. The Cheesecake Factory was incorporated and made its initial public offering in 1992. In 1999,<br />
the company opened a more upscale sister concept, Grand Lux Café.<br />
<strong>Menu</strong> Positioning |<br />
The Cheesecake Factory is open for lunch, dinner and Sunday brunch, offering an extensive menu of more than 200 items<br />
including appetizers, pizza, specialties, pasta, fish and seafood, steaks, eggs and omelettes, salads, sides, and desserts. Its<br />
signature selections are its 40 varieties of cheesecake, including White Chocolate, Raspberry Truffle, Fresh Strawberry, Dutch<br />
Apple Caramel Streusel, Chocolate Peanut Butter Cookie Dough, Kahlua Almond Fudge and Chocolate Mousse. The<br />
restaurant also offers other desserts, including reduced-fat and reduced-calorie versions. Popular menu items include<br />
Avocado Eggrolls, Firecracker Salmon Rolls, Baja Chicken Tacos, Orange Chicken, Pasta Da Vinci, Cajun Jambalaya Pasta,<br />
Shepherd’s Pie, “Mile High” Meatloaf Sandwich and Chinese Chicken Salad. The Sunday brunch menu includes a variety of<br />
egg-based entrées. The chain, known for its gargantuan portion sizes, has tested a new menu allowing guests to opt for<br />
smaller portions of a dozen of its most popular dishes. An extensive liquor menu includes beer, wine, martinis and specialty<br />
drinks. <strong>Menu</strong> prices range from $6.95–$29.95. Checks average $20.<br />
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Expansion Plans |<br />
Cheesecake Factory opened two new restaurants in Chula Vista, CA, on October 27 and in Pittsburgh, PA, on October 30.<br />
The new locations mark the company’s 111th and 112th restaurants. (Company Release 10/31/06)<br />
Cheesecake Factory has opened its 113th restaurant in Omaha, NE, on November 1. The new unit is located at the<br />
Westroads Mall. The company has also opened its 114th restaurant in Milwaukee, WI, on November 2. The new unit is located<br />
at the Bayshore Mall. (Company Release 11/6/06)<br />
Cheesecake Factory opened its 115th unit in Pleasanton, CA, on November 7. The new restaurant is located in the Stoneridge<br />
Mall. (Company Release 11/8/06)<br />
Cheesecake Factory opened its 116th and117th restaurants in Atlanta on November 14 and Lake Grove, NY, on November<br />
16. The 116th unit is located in the Cumberland Mall and the 117th in the Smith Haven Mall. Cheesecake Factory also opened<br />
its 118th restaurant in Fairfax, VA, on November 20. The unit is located in the Fair Oaks Mall. (Company Release11/21/06)<br />
Cheesecake Factory opened its 119th restaurant in Dulles, VA, on December 4. The unit is located in the Dulles Town Center.<br />
(Company Release 12/5/06)<br />
Cheesecake Factory has opened its 120th unit in Boise, ID, and its 121st location in Buffalo, NY, on December 11. The 120th<br />
restaurant is located in the Boise Towne Square Mall and the 121st is located at the Walden Galleria. (Company Release<br />
12/12/06)<br />
Cheesecake Factory opened its 123rd restaurant in Riverside, CA, on December 21. The new unit is located in Tyler Mall.<br />
(Company Release 12/22/06)<br />
Cheesecake Factory opened its ninth Grand Lux Café in Aventura, FL, on March 5. The restaurant is located in the Aventura<br />
Mall. (Company Release 3/6/07)<br />
Cheesecake Factory opened its 124th location in Brandon, FL, on April 23. The restaurant is located at the Brandon Town<br />
Center Mall. It is approximately 10,200 sq. ft. and seats 275 guests. (Company Release 4/24/07)<br />
Grand Lux Café will open a new location in Scottsdale, AZ, in 2009. The new concept from Cheesecake Factory will be<br />
located at Scottsdale Fashion Square. The restaurant will feature pork and steak entrées in addition to sushi, burgers, fish and<br />
salads with American, Caribbean, Thai and Malaysian flavors and desserts such as Key lime pie and bread pudding. (The<br />
Business Journal of Phoenix 4/20/07)<br />
The Cheesecake Factory plans to add 15 units this year. It currently has 124 namesake locations and also operates nine<br />
Grand Lux Cafés, two Cheesecake Factory Bakery Café units and one Cheesecake Factory Express outlet at DisneyQuest in<br />
Orlando, FL. (NRN Daily NewsFax 4/27/07)<br />
Cheesecake Factory opened its 125th unit in Braintree, MA, on June 28. The restaurant is located at the South Shore Plaza<br />
and seats 300 guests. (Company Release 6/29/07)<br />
Cheesecake Factory opened its 126th Cheesecake Factory restaurant in Pittsford, NY, on July 26. The new unit is located in<br />
the Pittsford Plaza and seats 290 guests. (Digital50.com 7/27/07)<br />
Cheesecake Factory opened its 127th location on August 23 in Tulsa, OK. The approximately 10,200-sq.-ft. unit is located at<br />
the Woodland Hills mall. (Company Release 8/24/07)<br />
Cheesecake Factory will open a unit September 20 in Willow Grove Park mall, near Philadelphia. (Bizjournals.com 9/17/07)<br />
Grand Lux Café’s parent company, The Cheesecake Factory Inc., is prepping the nine-unit chain for major expansion.<br />
Originally developed as a secondary brand and test concept, Grand Lux Café has seen success in major cities nationwide,<br />
leading the company to revise growth strategies for the chain. New plans call for five to seven units in existing markets through<br />
2008, while overall the company envisions 150 total Grand Lux Café units. Grand Lux Café will now be positioned as a more<br />
high-end alternative to The Cheesecake Factory, with an updated menu, new décor package and increased check averages.<br />
(Nation’s Restaurant News 8/27/07)<br />
Cheesecake Factory plans to focus on expanding its Cheesecake Factory and Grand Lux Café brands in markets that<br />
demonstrate a demand for upscale casual dining, including urban markets and affluent suburbs. The company plans 200<br />
Cheesecake Factory units and 150 Grand Lux locations. (Cnnmoney.com 9/18/07)<br />
Cheesecake Factory opened its 132nd restaurant October 11 in Peabody, MA. The new restaurant is the company’s 11th<br />
opening in fiscal 2007. (Company Release 10/12/07)<br />
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Cheesecake Factory opened its 133rd unit on October 18 in Natick, MA. The restaurant marks the company’s 12th opening in<br />
fiscal 2007. (Company Release 10/19/07)<br />
Cheesecake Factory has opened its first Utah store at Fashion Place Mall in Murray. The Utah store is unique in that it is the<br />
only Cheesecake Factory unit without a traditional bar. Unlike other Cheesecake Factories, the Murray store will not have a<br />
separate bar area. The company is considering a second store in downtown Salt Lake City. (The Salt Lake Tribune 10/31/07)<br />
Cheesecake Factory opened a Grand Lux Café at Scottsdale Fashion Square in Scottsdale, AZ. The new restaurant, opened<br />
November 8, marks the 11th unit in the company’s upscale chain. (Company Release 11/9/07)<br />
Cheesecake Factory opened an Arlington, TX, location on November 15. The new restaurant, opened at The Parks at<br />
Arlington, marks the 17th unit the company has opened in fiscal 2007. (Company Release 11/16/07)<br />
Cheesecake Factory opened a Huntington, NY, location on November 29. The new restaurant, opened at the Walt Whitman<br />
Mall on Long Island, seats 300. Also, Cheesecake Factory opened a Grand Lux Café in Littleton, CO. The new restaurant,<br />
opened at the Park Meadows Mall on November 29, marks the 12th Grand Lux Café concept location. (Yahoo! Finance<br />
11/30/07)<br />
<strong>Menu</strong> Development |<br />
Mushrooms are proving their versatility in a variety of dishes from entrées to appetizers. Approximately 83% of operators<br />
surveyed in the 2005 Restaurants & Institutions <strong>Menu</strong> Census purchased mushrooms. In addition to many independent<br />
restaurants, several chain restaurants are beginning to use mushrooms in dishes. The Cheesecake Factory has the highest<br />
number of dishes with mushrooms, according to the census. One of the entrées is a Kobe beef burger topped with sautéed<br />
shiitakes and onions. Taberna del Alabardero in Washington, D.C., features a twist on classic paella with mushrooms as the<br />
main ingredient. At one sixtyblue in Chicago, Chef Martial Noguier serves cooked and cooled enoki, button and shiitake<br />
mushrooms, seasoned with a vinaigrette prepared from reduced mushroom stock, sherry vinegar, shallots, grapeseed oil and<br />
truffle oil. Sushi Roku units in California menu seared enoki and oyster mushrooms served in a clay pot with ponzu sauce.<br />
(Restaurants & Institutions 10/01/06)<br />
The Cheesecake Factory expanded its Classic Cocktails selection. New offerings include: •El Diablo—Tres Generaciones<br />
Anejo Tequila, Cointreau and grapefruit juice •Mint Julep—Maker’s Mark Whiskey, lots of fresh mint and a splash of peach<br />
brandy •Singapore Sling—Bombay Gin, cherry liqueur, lime and grapefruit •Banana Banshee—banana liqueur, white cacao<br />
and a dash of cream •Gin Rickey—Tanqueray Gin, lime, sugar and crushed ice •Pisco Sour—Peruvian pisco brandy and<br />
pineapple juice, served on the rocks •The Ritz—Courvoisier, champagne, Cointreau and pomegranate juice •Pomegranate<br />
Margarita—gold tequila, Cointreau, pomegranate and lime juice (Company Website)<br />
The Cheesecake Factory debuted two new cheesecakes, three new specialty desserts and a new sundae. The cheesecakes<br />
include Caramel Pecan Turtle Cheesecake, a pecan brownie and caramel fudge swirl cheesecake topped with caramel turtle<br />
pecans and chocolate, and Mixed Berry Custard Almond Crunch Cheesecake, a mixed-berry cream cheesecake topped with<br />
layers of vanilla cake, custard and brown sugar-almond streusel. The new desserts are Chocolate Tower Truffle Cake, layers<br />
of fudge cake with chocolate truffle cream and chocolate mousse; Lemoncello Cream Torte, layers of vanilla cake and lemon<br />
mascarpone cream finished with streusel, strawberries and whipped cream; and Chris’ Outrageous Chocolate Cake, layers of<br />
moist chocolate cake, chewy brownie, toasted coconut pecan filling and creamy chocolate chip-coconut cheesecake. The<br />
sundae is a Godiva Chocolate Brownie Sundae featuring a Godiva chocolate brownie, vanilla ice cream, hot fudge, whipped<br />
cream and toasted almonds. (Company Website)<br />
The Cheesecake Factory introduced several new dishes to its menu. New lunch and dinner selections include B.L.T. Salad,<br />
Steakhouse Salad, Market Salad, Fresh Spinach Salad, Beer Battered Fish & Chips, Rigatoni with Roasted Tomato Sauce,<br />
Pasta Bolognese, Beef Ribs, Shrimp Scampi with Steak Diane, Shrimp Scampi with Chicken Madeira, Herb Crusted Salmon<br />
and Shrimp Scampi, Chicken Madeira and Steak Diane, Steak Diane and Herb Crusted Salmon and Riviera Salad. New<br />
brunch choices are Chocolate Chip Belgian Waffle, Crab Hash and Steak and Eggs. (Company Website)<br />
The Cheesecake Factory added new hot drink options to its menu. New selections include Green Tea Latte, Chai Tea Latte,<br />
Certified Organic Coffee and Certified Organic Black and Herb Teas. (Company Website)<br />
The Cheesecake Factory debuted two new desserts: White Chocolate Caramel Macadamia Nut Cheesecake, consisting of<br />
white chocolate cheesecake swirled and topped with macadamia nuts, caramel and chunks of white chocolate on a blond<br />
macadamia-nut brownie crust; and Tres Leches Cheesecake, featuring sweet cream-soaked vanilla cake topped with tres<br />
leches cheesecake, a layer of Bavarian cream and fresh strawberries. (Company Website)<br />
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The Cheesecake Factory rolled out several new items, including salads that contain 590 calories each. New items include: •<br />
Guacamole Made-to-Order–avocado, onion, chiles, cilantro, tomato and fresh lime with tortilla chips, salsa and sour cream •<br />
Weight Management Asian Chicken Salad–grilled chicken, romaine, snow peas, bean sprouts, green onions, carrots,<br />
almonds, crispy noodles and sesame seeds tossed in a low-cal sesame-soy dressing • Weight Management Spicy Chicken<br />
Salad–grilled chicken, roasted poblano, fresh corn, black beans, onions, red and yellow peppers, rice and cilantro served with<br />
mixed greens and low-cal spicy vinaigrette • Weight Management Pear and Endive Salad–grilled chicken, endive, arugula,<br />
butter lettuce, radicchio, roasted pear, candied pecans, tomato and bleu cheese with a low-cal vinaigrette • Weight<br />
Management California Salad–grilled chicken, romaine, bleu cheese, bacon, fresh beets, asparagus and hard-cooked eggs<br />
tossed in a low-cal mustard vinaigrette • Weight Management Seafood Salad–chilled salmon or rare albacore tuna with mixed<br />
greens, green beans, tomato, radishes, red and yellow peppers, kalamata olives, capes and hard-cooked eggs mixed with a<br />
low-cal vinaigrette • Crispy Pork Tenderloin–crusted and sautéed with lemon-caper sauce, paired with macaroni and cheese •<br />
Garlic Noodles–grilled chicken or shrimp with spaghettini, shiitake mushrooms, asparagus, oven- roasted tomatoes and<br />
Parmesan, tossed in a garlic sauce • Grilled Rib-Eye Steak Teriyaki Style–glazed in teriyaki sauce and served with a side of<br />
french fries and onion strings • Cuban Sandwich–slow-roasted pork, ham, Swiss cheese, pickles and mustard served on a<br />
grilled and pressed Cuban-style roll with a side of french fries • Baja Chicken Hash–chicken chorizo, poblano chiles, potatoes,<br />
corn, peppers, onions and cheese over two tortillas, topped with eggs and hollandaise sauce. (Company Website)<br />
Personnel |<br />
Robert Okura, Executive Chef<br />
Russell Bendel, COO/President<br />
Howard Gordon, E.V.P. of Marketing<br />
Ronald McArthur, S.V.P. of Purchasing<br />
David Overton, CEO<br />
Michael Dixon, CFO<br />
Cheesecake Factory president and chief operating officer, Peter D’Amelio, is resigning for personal reasons, effective<br />
February 2. The company is looking for a replacement. (Company Release 1/16/07)<br />
Cheesecake Factory Inc. hired Russell Bendel as President and Chief Operating Officer of its restaurant division. Previously,<br />
Bendel served as President and Chief Executive of Mimi’s Café. Bendel replaced Peter D’Amelio, who resigned in February.<br />
(Online.wsj.com 8/14/07)<br />
News & Other |<br />
Cheesecake Factory held its fifth annual Thanksgiving Day Feast at eight Salvation Army centers on November 23. The<br />
company served a complete Thanksgiving dinner which included its signature Holiday Pumpkin Cheesecake. (Company<br />
Release 11/24/06)<br />
Cheesecake Factory will re-release financial results that were previously reported. The reason for the re-release is due to<br />
“accounting errors” that were found. (NRN Daily NewsFax 11/21/06)<br />
Cheesecake Factory reported for the second quarter ended July 4 net earnings increased 13% to 26.4 million. Revenues rose<br />
12% to $322.6 million from $288.5 million for the same period last year. Same-store sales decreased 0.8%. Also, the company<br />
reported for the third quarter ended October 3 net earnings decreased 3% to $18.1 million. Revenues increased 11% to<br />
$325.3 million from $294 million for the same period last year. Same-store sales fell 1.6%. (Company Release 11/30/06)<br />
Cheesecake Factory has been notified by the Nasdaq Listing Qualifications Panel that it has met Nasdaq’s requirements for<br />
continued listing. (Company Release 12/20/06)<br />
Cheesecake Factory reported for the fourth quarter ended January 2 same-store sales increased 0.8%. (NRN Daily NewsFax<br />
1/10/07)<br />
Cheesecake Factory reported for the fourth quarter ended January 2 net earnings decreased 9.3% to $20.4 million from $22.5<br />
million for the same period last year. Revenues increased 18% to $360.7 million from $328.6 million. Same-store sales grew<br />
0.8%. (Company Release 2/6/07)<br />
Cheesecake Factory Inc. reported that it will release its first quarter financial results on April 24, after the market close. On the<br />
same day, the company will hold a conference call, hosted by David Overton, Chief Executive Officer and Chairman, and<br />
Michael Dixon, Chief Financial Officer and Senior Vice President, that will also be broadcast over the Internet. To listen to the<br />
conference call, log onto the company’s website for further information. (Company Release 4/17/07)<br />
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158
Cheesecake Factory reported for the first quarter ended April 3 net earnings declined 5% to $18.4 million from $19.3 million for<br />
the same period last year. Revenues increased 16% to $356.6 million from $306.7 million. Same-store sales grew 0.4%.<br />
(Company Release 4/24/07)<br />
Rock Sugar Pan Asian Kitchen is a newly developed Southeast Asian concept from The Cheesecake Factory. Taking its name<br />
from rock sugar, an essential ingredient in Asian cooking, Rock Sugar Pan Asian Kitchen will open its inaugural unit in the<br />
Century City area of Los Angeles this September. The 7,500-sq.-ft. restaurant will feature a chic décor package and an<br />
extensive menu of Thai, Vietnamese, Malaysian, Indonesian and East Indian entrées. (Rimag.com 4/27/07)<br />
Cheesecake Factory reported that for the second quarter ended July 3 revenues increased 15.7% to $373.2 million from<br />
$322.6 million for the same period last year. Same-store sales rose 0.8% at Cheesecake Factory and 5.7% at Grand Lux<br />
Café. (Company Release 7/9/07)<br />
A Cheesecake Factory worker in Phoenix, AZ, may have exposed some guests to hepatitis A. Health officials says the risk of<br />
exposure is low but everyone who ate at the restaurant on July 20 is being offered a shot that can lower the chances of<br />
becoming ill. (Azcentral.com 7/29/07)<br />
Cheesecake Factory Executive Vice President and General Counsel Debby Zurzolo exercised options for 5,000 shares of<br />
common stock on August 7. Zurzolo exercised the options for the shares for $5.90 per share and sold all the shares for $27.87<br />
apiece. (Associated Press 8/8/07)<br />
Cheesecake Factory reported for the third quarter ended October 2 net earnings increased 2.2% to $18.5 million from $18.1<br />
million for the same period last year. Revenues increased 15.4% to $375.5 million from $325.3 million. Same-store sales grew<br />
1.2%. (Company Release 10/23/07)<br />
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159
Chevys Fresh Mex<br />
Headquarters<br />
5660 Katella Avenue, Cypress, California 90630 USA<br />
Tel: (562)346-1200 Fax: (562)346-1463<br />
www.chevys.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 288,000 283,000 280,000<br />
Company-owned ($000) 192,000 188,000 185,000<br />
Franchised ($000) 96,000 95,000 95,000<br />
U.S. Number of Units 102 101 104<br />
Company-owned 69 68 68<br />
Franchised 33 33 36<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,785 2,765 2,600<br />
Concept Positioning |<br />
Chevys Fresh Mex is a full-service restaurant specializing in fresh, high-quality Mexican foods, all made from scratch. Fresh<br />
Mex is Chevys registered trademark as its commitment is to serve the finest, freshest Mexican food. In fact, its salsa is<br />
blended fresh hourly and no tortilla older than three minutes is served. The chain can be found in 91 cities in 15 states, and is<br />
a division of Real Mex Restaurants Inc., a public company sponsored by Sun Capital Partners Inc. The Real Mex Restaurant<br />
Group also oversees El Torito, Acapulco, Las Brisas and Casa Gallardo. All food is made on-premise from fresh ingredients<br />
including beef, fish or chicken as well as produce. Nothing is canned or bottled, save for olive oil. Its ultra-thin tortilla chips are<br />
cooked in canola oil and are served warm from the fryer.<br />
The company’s décor package is described as “modern Mexican” with neon and an updated color-scheme continuing to reflect<br />
its fun and fresh atmosphere. Many units are conversions of historical sites. Flour tortillas are served hot from "El Machino,” a<br />
contraption of conveyor belts and pulleys that bake up to 900 tortillas per hour, in each dining room.<br />
The chain has also developed an additional concept. Fuzio. The original unit opened in mid-1997 in San Francisco and<br />
features a menu of “universal pasta,” from regions around the world. Fuzio brings some of them together under one roof. Open<br />
for both the lunch and dinner day parts, current menu favorites include Firecracker Pork Fusilli, Shanghai Curry Chicken and<br />
Crispy Calamari Linguine. Units are located in San Francisco, Los Angeles and Davis, CA; Chicago and Washington, D.C.<br />
Chevys was founded in 1986 in Alameda, CA. In late 1993, PepsiCo announced the acquisition of the chain. A franchising<br />
program began in 1996. In 1997, PepsiCo divested the company through a management-led buyout to J.W. Childs. In early<br />
1999, Chevys announced its intent to acquire the Rio Bravo chain from Applebee’s International for some $53 million; the deal<br />
was completed in mid-April. In 2005, the company was purchased out of Chapter 11 bankruptcy by Real Mex Restaurants for<br />
$90 million.<br />
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<strong>Menu</strong> Positioning |<br />
Chevys' menu features appetizers, salads, quesadillas, fajitas, enchiladas, tacos, tortillas, combos, wraps and rolls, sides and<br />
beverages. Its signature items are Spinach, Artichoke & Mushroom Enchiladas, Grilled Fish Tacos, Smoky Chipotle Chicken<br />
Enchiladas, Mesquite Chicken and Beef Fajitas al Carbon; and the Mixed Grill—with baby back ribs, mesquite-grilled chicken<br />
breast, skirt steak, sautéed shrimp and roasted garlic-herb veggies. Popular varieties of fajitas include the Smokin’ Hot<br />
Habanero Steak Fajitas and the Portobello Mushroom and Asparagus Fajitas. Other favorites include, Shrimp & Crab<br />
Enchiladas and Crispy Flautas. Desserts include Ooey-Gooey-Chewy Sundae, Chevys Flan and Coconut Cajeta and Chiquita<br />
Sunday. Restaurants serve lunch, dinner and a weekend “Fresh Mex” brunch. Full liquor service is available, with seasonal<br />
specials like the limited-time Mango Margarita, as well as a kids’ menu. <strong>Menu</strong> prices range from $3.99–36.99 for entrées and<br />
$4.99–$13.99 for appetizers. Checks average $11.50.<br />
<strong>Menu</strong> Development |<br />
Chevy’s introduced its new “El Grande Steak Out.” The line features Carne Asada and Chile Relleno; Steak Fajitas; Fajita<br />
Steak Tostada Salad; Grilled Steak Tacos, two El Machino soft tacos filled with steak, lettuce, pico de gallo, cotija cheese and<br />
chipotle aïoli; and Steak Fajita Nachos, grilled steak and melted Cheddar cheese with refried beans. Customers can add a<br />
soup or salad for 99¢. (Company Website 4/11/07)<br />
Personnel |<br />
Peter Serantoni, V.P. of <strong>Menu</strong> Development<br />
Fred Wolfe, CEO<br />
Steven Tanner, CFO<br />
Charles Rink, COO<br />
Julie Koenig, V.P. of Marketing<br />
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161
Chick-fil-A<br />
Headquarters<br />
5200 Buffington Rd., Atlanta, Georgia 30349 USA<br />
Tel: (404)765-8038 Fax: (404)765-8971<br />
www.chick-fil-a.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,275,000 1,975,000 1,746,398<br />
Company-owned ($000) 1,960,000 1,690,000 1,466,975<br />
Franchised ($000) 315,000 285,000 279,423<br />
U.S. Number of Units 1,295 1,237 1,191<br />
Company-owned 1,090 1,039 991<br />
Franchised 205 198 200<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,795 1,645 1,677<br />
Concept Positioning |<br />
Chick-fil-A operates a chain of limited-service chicken restaurants, specializing in breaded chicken breast sandwiches, wraps,<br />
strips, nuggets and salads. Food at Chick-fil-A units is prepared almost exclusively from scratch at the unit each day.<br />
Operators may experiment with new items, subject to corporate approval. Regional tastes also may vary the moderately priced<br />
menu. Chick-fil-A appeals to a wide demographic of diners, from teens and adults to families with children. Its quick-service<br />
format draws customers on-the-go, typically shoppers, due to the chain’s presence in and around major suburban retail<br />
properties. Chick-fil-A Inc. owns the chain and operates a mix of corporate and franchised stores. While the majority of units<br />
are company-owned, Chick-fil-A is offering licenses and profit-sharing options to franchisees.<br />
Most stores are located in shopping malls. Several size prototypes are used with the average measuring 1,410 sq. ft. An ideal<br />
size is 1,600 sq. ft. with a 50-seat dining area. In malls with more than 1 million sq. ft., the 1,800-sq.-ft. store, seating 72<br />
customers, is frequently used. Units have little storage space; deliveries of supplies are accepted daily or three times a week.<br />
New freestanding units, with 3,600 sq. ft. and seating for 90, feature a natural light core with an inside playground and a drivethru<br />
window. The company also has a double drive-thru prototype for freestanding units. The company has begun an<br />
aggressive expansion in nontraditional markets including college campuses, school lunch programs, supermarkets, hospitals,<br />
airports, etc., whether the unit is freestanding or kiosk and cart operations.<br />
CFA also operates Chick-fil-A Dwarf House restaurants, a family-dining concept that has often served as the testing ground for<br />
Chick-fil-A operations. A gradual expansion of the concept began in mid-1991. Units offer all the menu items available at<br />
Chick-fil-A units as well as specialties like Hot Brown, a chicken casserole topped with cream sauce, bacon strips and paprika,<br />
burgers, steak and made-to-order breakfast combinations.<br />
S. Truett Cathy, the operator of a chain of Dwarf House coffee shops outside of Atlanta, introduced Chick-fil-A's signature item<br />
at the 1962 Southern Hotel and Restaurant Convention. Its first chain location opened in 1967 in Atlanta. In 1997, the<br />
company opened its first Truett’s Grill, a 50's-themed concept located in Morrow, GA. It was named in honor of Cathy and his<br />
50 years in the restaurant business. Chick-fil-A has targeted central Florida and the western U.S. as its two top growth<br />
markets, with an expansion goal of 65–70 new units in these areas.<br />
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<strong>Menu</strong> Positioning |<br />
Chick-fil-A's menu features a variety of classic chicken items, including breakfast selections, salads, wraps, sides, desserts<br />
and beverages. Chicken sandwiches are prepared as pressure-cooked or chargrilled. Signature items include the Original<br />
Chick-fil-A Chicken Sandwich, as well as the chain’s popular waffle fries and freshly squeezed lemonade. Other menu<br />
favorites include nuggets, chicken salad sandwich, tossed salad and chargrilled garden salad. Featured sides and desserts<br />
include coleslaw, Carrot & Raisin Salad, assorted fruit cups, Hearty Breast of Chicken Soup, Chicken Salad Cup, side salads,<br />
cheesecake, lemon pies, Icedream cups and cones and fudge nut brownies.. Breakfast includes the signature chicken biscuit<br />
and other biscuit-based sandwiches, platters and baked goods. Combo meals are offered and include soft drink and waffle<br />
fries. Kids' menu items and combo meals are available. The chain offers a line of 20-oz. milkshakes in Chocolate, Cookies &<br />
Cream, Strawberry and Vanilla flavors. In addition to lemonade, other beverages include Coca-Cola® products, coffee, juice,<br />
milk and bottled water.<strong>Menu</strong> prices range from 99¢–$4.39 for regular menu items and $3.09–$6.79 for combo meals. Checks<br />
average $$4.25.<br />
Expansion Plans |<br />
Chick-fil-A Inc. opened a new, stand-alone restaurant in Fredericksburg, VA, and Springfield, MO, on January 25. (Company<br />
Release 1/23/07)<br />
Chick-fil-A opened two new stand-alone locations in Atlanta on March 22. To celebrate the opening, the company gave away a<br />
one-year supply of free Chick-fil-A combo meals to the first 100 adults. (Sys-con.com 3/21/07)<br />
Chick-fil-A opened its first freestanding restaurant in Redlands, CA, at 6:30 a.m. on May 17 as it celebrates its 40th<br />
anniversary. The first 100 adults in line at the unit’s grand opening received free combo meals for a year. (Company Release<br />
5/16/07)<br />
Promotion Plans |<br />
Chick-fil-A will offer free meals on July 13 to people who are fully dressed as cows. Part of its third annual Cow Appreciation<br />
Day event, the chain will offer a free breakfast, lunch or dinner combo meal. Last year, more than 4,000 customers visited the<br />
chain’s locations dressed as cows in order to receive their free meals. (Company Release 7/11/07)<br />
Chick-fil-A teamed with Spot What! to launch an online “Show Us the Cow” photo contest for children. Children 10 and<br />
younger are invited to submit creative photos of themselves posing with an “Eat Mor Chikin” cow, which can be a paper cutout<br />
or a toy. Photos then can be uploaded to the chain’s website, where guests can vote for their favorite. The winner will receive<br />
a $1,000 U.S. savings bond, a catered party for the child’s classroom, a digital camera and free Chick-fil-A kids’ meals for a<br />
year. The contest ends September 30. (Nation’s Restaurant News 7/26/07)<br />
Chick-fil-A launched an online video “Biggest Chick-fil-A Fan Contest” as part of its year-long 40th anniversary celebration.<br />
Customers can submit a minute-long video to the chain’s website that creatively expresses why they are Chick-fil-A’s biggest<br />
fan. The public will vote for their 10 favorite video entries and Chick-fil-A will determine the grand prize winner. The 10 finalists<br />
will receive complimentary Chick-fil-A Combo Meals for one year and a merchandise prize pack, and the grand prize winner<br />
will be given 40 months of free Chick-fil-A Combo Meals, a trip for two to Atlanta to visit corporate headquarters, and chain<br />
merchandise. (QSR Magazine Online 11/13/07)<br />
<strong>Menu</strong> Development |<br />
Chick-fil-A introduced Hand-Spun Mint Cookies and Cream Milkshake flavor to its Hand-Spun Milkshake lineup. The beverage<br />
will be available through the end of June. It is prepared with Icedream, Oreo Sandwich Cookies and mint flavoring and is<br />
topped with whipped cream and a maraschino cherry. It is priced at $2.79 for a 20-oz. cup. (QSRMagazine.com 3/07/07)<br />
Chick-fil-A expanded its kids’ menu on April 12. The new menu includes both new existing items. The new items include plain<br />
and chocolate Milk Chugs and Minute Maid Apple Juice in addition to existing items from the core menu that include Hi-C,<br />
Chick-fil-A’s signature freshly squeezed lemonade and two- or three-count Chick-fil-A Chick-n-Strips. Other changes include<br />
offering a free table topper “stick-in-place” plastic placemat for infants and special dispensers of individual Purell sanitizing<br />
hand wipes. Kids’ meals will also feature educational, interactive and fun activities such as storybooks, CD-ROMs and mystery<br />
games. (QSRmagazine.com 4/13/07)<br />
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163
Technology |<br />
Chick-fil-A chose Delphis Software to implement its AROS online ordering system in the chain’s locations. Customers can now<br />
order food online for takeout or delivery directly from the chain’s website. The restaurant believes that the software will<br />
improve efficiency, eliminate transcription errors, increase productivity and elevate customer satisfaction. Delphis Software is a<br />
provider of online ordering technology centralized call-center applications to the restaurant industry. (Qsrmagazine.com<br />
4/24/07)<br />
Chick-fi l-A is rolling out online ordering to select restaurants. Customers will be able to order food online for takeout and<br />
delivery. Chick-fi l-A plans to add the program to about 300 restaurants nationwide. (QSRWeb.com 4/24/07)<br />
Chick-fil-A is testing a “smart” safe that automatically counts the unit’s take of cash and credit, and credits the proceeds into<br />
the chain’s bank account. The system, from Bank of America of Charlotte, NC, should also improve employee safety by<br />
curtailing bank trips and time spent counting cash. (NRN Daily NewsFax 10/23/07)<br />
Personnel |<br />
Truett Cathy, CEO<br />
James McCabe, CFO<br />
Younger Newton, V.P. of Purchasing<br />
Steve Robinson, CMO<br />
Thomas Childers, Director of <strong>Menu</strong> Management<br />
Dan Cathy, President/COO<br />
News & Other |<br />
Chick-fil-A reported more than $2 billion in restaurant sales. The company attributes the increase to the introduction of<br />
milkshakes and the dedication of its operators. (Company Release11/28/06)<br />
Virginia Tech in Blacksburg, VA, has eliminated trans-fat-containing frying oils from its meals. The switch will affect diners at<br />
the university’s seven major dining halls, each of which offers a range of food outlets. On-campus fast-food chains such as<br />
Chick-fil-A will not be included in the switch because the university has no control over product selection for national<br />
companies. (The Roanoke Times 1/30/07)<br />
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164
Chili's Grill & Bar<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972)980-9917 Fax: (972)770-9593<br />
www.chilis.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 3,468,000 3,029,516 2,726,796<br />
Company-owned ($000) 2,891,000 2,621,603 2,359,655<br />
Franchised ($000) 577,000 407,913 367,141<br />
U.S. Number of Units 1,146 1,022 927<br />
Company-owned 944 863 780<br />
Franchised 202 159 147<br />
International Sales ($000) 290,000 228,422 201,491<br />
International Units 139 108 96<br />
Average Sales/Unit ($000) 3,200 3,100 3,000<br />
Concept Positioning |<br />
Brinker International operates and franchises Chili's Grill & Bar, a full-service casual-dining concept that offers a varied menu<br />
including ribs, fajitas, hamburgers, salads, appetizers, desserts, margaritas and more. Brinker International is the parent<br />
company of Chili's Grill & Bar.<br />
Units are freestanding, averaging 4,500–5,500 sq. ft., and seat 145–215 patrons. The casual décor features tiled floors and<br />
tables, hanging plants, wood and brick walls, copper-kettle lamps, ceiling fans, shutters and south-of-the-border touches.<br />
Stores are open for lunch, dinner and late-night meals seven days a week. Chili's serves a broad target market with special<br />
emphasis on the 18- to 44-year-old segment. The chain offers table or takeout service. In fact, Chili’s was an early pioneer of<br />
full-service takeout with its Curbside To-Go service. Approximately 80% of its units have separate entrances for takeout order<br />
pickups, and plans call for all new unit construction to include this feature.<br />
Chili’s Inc. was founded in Dallas in 1975 by brothers Larry and Jack Lavine. In 1983, Chili's Inc. attracted the attention of<br />
Norman Brinker, who bought the company and took it public that same year. The company now has over 1,600 restaurants,<br />
including units of Chili's Grill & Bar, Chili's Too, Romano's Macaroni Grill, On the Border Mexican Grill & Cantina and<br />
Maggiano's Little Italy.<br />
Chili's has grown to serve over 700,000 guests daily in more than 1,200 restaurants in 24 countries worldwide. Units are in<br />
small towns, urban centers, shopping malls, airports, military bases and even a riverboat in Egypt. The company is looking to<br />
further build the brand in nontraditional sites such as airports and shopping malls. Chili's opened a record 132 restaurants in<br />
fiscal 2006, both company-owned and franchised—the first time the company has opened 100 company-owned restaurants for<br />
a brand in one year. Brinker also entered into an agreement to bring the first Chili's restaurant to Montana, putting the chain on<br />
the map in all 50 states. In early 2007, Brinker announced a significant expansion of franchise ownership where Pepper Dining<br />
would acquire 89 company- owned Chili's restaurants with plans to develop an additional 20–44 new franchised locations in<br />
East Coast states. This is the largest franchise transaction in Brinker history, and is part of the company's announced strategy<br />
to expand domestic and international franchise ownership of its brands from 20% to 30% in 2007.<br />
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<strong>Menu</strong> Positioning |<br />
Chili's Grill & Bar is known for its Big Mouth Burgers, Cadillac Fajitas and Baby Back Ribs, along with freshly prepared<br />
appetizers, chicken, beef and seafood entrées, sandwiches, salads, and other Southwestern and American cuisine. Awesome<br />
Blossoms (colossal onions sliced, hand-battered and fried) have become a signature item. Other favorites are Quesadilla<br />
Explosion—marinated chicken, corn relish, mixed cheeses, cilantro, tomatoes and tortilla strips tossed in a citrus-balsamic<br />
dressing, garnished with chipotle-ranch drizzle and cheese quesadilla wedges; and Cajun Chicken Pasta—sliced, Cajunseasoned<br />
chicken breast on penne pasta with creamy Alfredo sauce, seasoned tomatoes, Parmesan cheese and garlic toast.<br />
Several signature entrées are available as “Create Your Own Combo” selections. New to the menu are Chicken Club Tacos—<br />
three flour tortillas filled with mesquite chicken, chopped applewood-smoked bacon, chipotle-ranch dressing, sliced tomatoes,<br />
mixed cheeses and lettuce, served with rice, black beans and optional guacamole. Fajitas, wings, lettuce wraps and other<br />
menu items are also available for takeout as Party Platters, each serving six to eight. Desserts include Molten Chocolate<br />
Cake, cheesecake, Chocolate Chip Paradise Pie, Frosty Chocolate Shake and Sweet Shots, mini dessert samples in<br />
chocolate, dutch-apple caramel cheesecake and strawberry wave cheesecake flavors. Each Chili's Grill & Bar features a fullservice<br />
bar and boasts a wide variety of margaritas, including the Presidente and El Nino Margaritas, along with beer, wine<br />
and sangria. A kids' menu is available. <strong>Menu</strong> prices range from $2.99–$8.79 for appetizers, soups and salads, and $6.49–<br />
$16.99 for entrées. Checks average $14.50.<br />
Promotion Plans |<br />
Chili’s Grill & Bar has announced Cliff Hillis the winner of its “Rock Star For A Day” contest. Hillis created an up-tempo version<br />
of Chili’s Baby Back Ribs song and won four round trip tickets to Los Angeles, four backstage passes to a concert by the New<br />
West Records artist of his choice, a stay at a luxury hotel and a meeting with New West Records executives. (Company<br />
Release 1/10/07)<br />
Chili’s Grill & Bar parted with GSD&M, the chain’s marketing agency, on its $125 million account. Chili’s sales have declined<br />
due to the lack of promotion of its new menu and overall segment declines. GSD&M had been Chili’s marketing agency for 20<br />
years. (Company Release 4/20/07)<br />
Chili’s is promoting its new Fired-Up Favorites line, which includes Crispy Honey Chipotle Chicken Crispers, Zesty Buffalo<br />
Chicken Fajitas, Blazin’ Habanero Baby Back Ribs and Firecracker Tilapia, by offering a free Chili’s Sweet Shot with the<br />
purchase of one of the Fired-Up Favorites. The offer is available for a limited time. (Company Website 7/23/07)<br />
Chili’s Grill & Bar teamed with St. Jude Children’s Research Hospital to invite people to participate in the “Create-A-Pepper to<br />
Fight Childhood Cancer” campaign. Guests can contribute by making a donation to St. Jude, for which they will receive a<br />
Create-A-Pepper coloring sheet, that will be displayed in restaurants throughout the month. Customers can also purchase a<br />
customizable Create-A-Pepper T-shirt and dog tag. Chili’s will donate $1 to St. Jude for every $25 purchased in the gift cards<br />
that accompany each Create-A-Pepper purchase. On September 24, Chili’s will donate 100% of its profits from restaurant<br />
sales to St. Jude. The fourth-annual campaign will be held in Chili’s restaurants nationwide and it runs through September,<br />
which is National Childhood Cancer Awareness month. (Newscom.com 8/23/07)<br />
Chili’s Grill & Bar hired Interpublic Group’s Hill Holliday as its agency of record, valued at more than $100 million. Hill Holliday<br />
replaced Omnicom Group’s GSD&M, the agency that created the “I Want My Baby Back Ribs” jingle. (NRN Daily NewsFax<br />
8/30/07)<br />
Chili’s Grill & Bar will host a special fundraiser at Hawaiian Falls Firewheel on September 15 in Garland, TX, to benefit St.<br />
Jude Children’s Hospital. (Ntxe-news.com 9/12/07)<br />
Chili’s Grill & Bar introduced a ribs promotion centered on the chain’s new ad tagline, “Pepper in Some Fun.” Hill Holiday in<br />
Boston created the tag to appeal to diners wanting new taste experiences. The “Baby Back Bonus” promotion, which runs<br />
through late November, offers a half rack of ribs, a dinner salad, fries and a dessert for $10.99 and introduces three new rib<br />
flavors: Brown Sugar Chili Rub, Blazin’ Habanero and Honey Chipotle. Dallas-based Brinker International is parent of more<br />
than 1,300 Chili’s in 24 countries. (Nation’s Restaurant News Online 10/11/07)<br />
<strong>Menu</strong> Development |<br />
Casual dining chains are adding more upscale fare to appeal to a more sophisticated customer base. Red Lobster recently<br />
added a fresh-fish menu, which includes the entrée Maui Laui Shrimp and Salmon, with skewered jumbo shrimp and fresh<br />
salmon fire-grilled and brushed with sweet and spicy glaze. Outback Steakhouse locations offer a Seared Ahi Tuna Appetizer,<br />
with sashimi-grade yellowfin seasoned and seared and served with sides of soy dressing and wasabi vinaigrette. At Chili’s,<br />
guests can dine on Southwest Cedar-Plank Tilapia, featuring a seasoned tilapia fillet, cooked and served on a cedar plank and<br />
finished with a chimichurri sauce and pico de gallo. (Wall Street Journal Online 12/28/06)<br />
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166
Chili’s debuted new Fire-Grilled Specialties, with prices starting at $7.99. The items include Mesquite Chicken Salad, grilled<br />
mesquite chicken breast, applewood-smoked bacon, Cheddar cheese, corn relish, crispy tortilla strips and tomatoes, topped<br />
with BBQ sauce and ranch dressing; Southwest Cedar Plank Tilapia, seasoned tilapia fillet finished with a chimichurri sauce<br />
and pico de gallo and served on a cedar plank with seasonal veggies and rice; and Grilled Chicken Club Tacos, three flour<br />
tortillas with mesquite chicken, chopped applewood-smoked bacon, diced tomatoes, mixed cheeses, chipotle-ranch dressing<br />
and lettuce served with sides of rice and black beans. (Company Release 3/09/07; Company Website)<br />
Chili’s debuted the Fajita Trio, featuring grilled steak, garlic and lime shrimp, marinated grilled chicken, onions and bell<br />
peppers and served with guacamole, pico de gallo, cheese, sour cream and warm tortillas. (Company Website)<br />
Chili’s rolled out its Sweet Shots dessert line, offer small samples of Seven Layers of Chocolate, Strawberry Wave<br />
Cheesecake and Dutch Apple Caramel Cheesecake. Customers can choose one for $2.49 or all three for $5.49. (Company<br />
Website)<br />
Chili’s added Texas Cheese Fries and Boneless Blazin’ Wings as appetizer offerings. Texas Cheese Fries are topped with<br />
melted cheese, jalapeños, applewood-smoked bacon and jalapeño-ranch dipping sauce. The Boneless Blazin’ Wings are<br />
tossed with a spicy habanero sauce and served with mango dipping sauce. (Company Website)<br />
Franchise Activity |<br />
Chili’s franchisee Bridgeman Foods acquired 15 restaurants in Wisconsin and Missouri for $19 million. Included are 10<br />
locations in Milwaukee and Madison, WI, and five in the St. Louis area. Bridgeman Foods is also one of the largest Wendy’s<br />
franchisees in the U.S., with more than 160 locations. (Company Release 11/07/06)<br />
International Activities |<br />
Brinker International Inc. has entered into a joint venture with Mexico City-based franchisee CMR SAB de SV to open 50<br />
restaurants in Mexico over the next four years. Under the agreement, Brinker and CMR will jointly contribute to a new<br />
company, Las Nuevas Delicias Gastronómicas. The partners plan to open more Chili’s Bar and Grill units and introduce the<br />
Maggiano’s Little Italy brand in Mexico. Brinker already has 49 Chili’s units in Mexico, 24 of which CMR operates. The new<br />
company expects five stores to open in 2007, with another eight slated for 2008. (Restaurantnewsresource.com 11/12/07,<br />
Dallasnews.com 11/13/07)<br />
Personnel |<br />
Tamin (Tim) Soufan, Director of <strong>Menu</strong> Development<br />
Douglas Brooke, CEO<br />
Charles Sonsteby, CFO<br />
Michael Dzura, COO<br />
Ken Thewes, V.P. of Marketing<br />
News & Other |<br />
Chili’s Grill & Bar reported October same-store sales decreased 1.2%. (Company Release 11/8/06)<br />
Chili’s Grill & Bar reported November same-store sales declined 1.2%. (NRN Daily NewsFax 12/8/06)<br />
Chili’s Grill & Bar reported January same-store sales declined 4.9%. (NRN Daily NewsFax 2/8/07)<br />
Brinker International Inc. reported February same-store sales declined 5.1% at Chili’s Grill & Bar, 4.1% at Romano’s Macaroni<br />
Grill, 4.1% at Maggiano’s Little Italy and 5.5% at On The Border. (NRN Daily NewsFax 3/8/07)<br />
Brinker International Inc. reported May same-store sales fell 3% at Chili’s, 4.2% at On The Border, 2.1% at Romano’s<br />
Macaroni Grill and 1.5% at Maggiano’s. In addition, stock shares fell 70¢ to close at $32.34. (Associated Press 6/6/07)<br />
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167
Chili’s Grill & Bar has sold 95 of its Northeastern and Mid-Atlantic region restaurants to Olympus Partners for $155 million.<br />
Olympus Partners has acquired the units from Chili’s parent Brinker International Inc., and will form a new Chili’s franchisee<br />
group, Pepper Dining Inc. to operate the restaurants. Chili’s former senior operating executive John McGlone will head Pepper<br />
Dining as CEO. (Company Release 6/27/07)<br />
Brinker International Inc., parent of Chili’s Grill & Bar, is being sued by a woman in Amherst, MA, who is alleging that she<br />
choked on a chicken quesadilla while dining in a Chili’s Grill & Bar restaurant. The lawsuit claims that a chicken bone was<br />
caught in the woman’s throat after she took a bite of the quesadilla and that her esophagus had been perforated because of it.<br />
(Amherstbulletin.com 8/20/07)<br />
Chili’s Grill and Bar closed the chain’s original Dallas restaurant on October 31. The store, opened in 1981, was forced to<br />
close due to business considerations, according to Brinker International, Chili’s parent company. The company says it will<br />
continue to look for expansion opportunities in the Dallas area. (The Dallas Morning News 10/30/07, CBS 11 News/Dallas<br />
10/31/07)<br />
Chili’s Grill and Bar, together with St. Jude Children’s Research Hospital, held grand opening ceremonies for the Chili’s Care<br />
Center in Memphis, TN, on November 14. The center will house St. Jude’s major treatment and research programs for brain<br />
tumor and bone marrow transplant patients. Chili’s has donated more than $18.7 million to the hospital since 2002. (Company<br />
Release 11/14/07)<br />
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168
Chipotle Mexican Grill<br />
Headquarters<br />
1543 Wazee St., Denver, Colorado 80202 USA<br />
Tel: (303)595-4000 Fax: (303)222-2500<br />
www.chipotle.com<br />
Ownership: Public<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 837,000 635,577 500,000<br />
Company-owned ($000) 815,000 625,077 490,000<br />
Franchised ($000) 22,000 10,500 10,000<br />
U.S. Number of Units 567 489 409<br />
Company-owned 547 481 402<br />
Franchised 20 8 7<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,584 1,440 1,195<br />
Concept Positioning |<br />
Chipotle Mexican Grill is a limited-service Mexican chain that strives to offer premium-quality Mexican fare in variations of<br />
three menu items—burritos, tacos and fajitas. The public chain operates 567 units across the U.S., 20 of which are franchised.<br />
Units are in a variety of sites, from freestanding to strip-center locations. They average 1,600–2,600 sq. ft., with seating for 25–<br />
96 guests. Décor features a spare industrial design that includes birch plywood, corrugated steel, wire mesh, pigmented<br />
concrete, stainless steel and leather. Takeout is available.<br />
Steve Ells opened the first Chipotle Mexican Grill in 1993 near the University of Colorado campus in Denver. In 1997,<br />
McDonald’s Corp. made a minority investment in the concept, and in 1999, McDonald’s increased its investment to more than<br />
51%. In 2001, the chain dropped the Mexican Grill portion of its name and was identified simply as Chipotle. However, a<br />
redesign of its logo and signage in 2007 reflected a return to its original brand, Chipotle Mexican Grill. In early 2006, Chipotle<br />
went public when McDonald's Corp. spun off 35% of the chain. McDonald’s divested the rest of its stake later that year.<br />
<strong>Menu</strong> Positioning |<br />
Chipotle is open for lunch and dinner, offering made-to-order burritos, tacos and fajitas, chips and salsas, and beverages.<br />
Burritos begin with a giant flour tortilla, cilantro-lime rice, choice of pinto or vegetarian black beans, choice of meat, choice of<br />
salsa and cheese or sour cream. Fajita Burritos are the same as burritos with the addition of sautéed peppers and onions<br />
instead of beans. Burrito Bols are burritos or fajitas without the tortilla and with romaine lettuce instead of rice. Taco meals<br />
include three soft or hard corn tortillas, choice of meat, choice of salsa, cheese or sour cream and romaine lettuce. Meat<br />
choices include Carnitas—pork seasoned with thyme, bay leaves, juniper berries and black pepper; Barbacoa—spicy<br />
shredded beef marinated in chipotle adobo, cumin, cloves, garlic and oregano; Chicken marinated in chipotle adobo; and<br />
Steak marinated in chipotle adobo. Chipotle offers naturally raised pork at all locations and naturally raised chicken and beef at<br />
select units. Sides include chips with salsa, available in hot, medium and mild flavors. Soft drinks, iced tea and bottled waters,<br />
as well as variety of beers and margaritas, are available. <strong>Menu</strong> prices range from $5.10–$6.45. Checks average $6.<br />
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169
Expansion Plans |<br />
Chipotle Mexican Grill Inc. is looking to add 95–105 units during 2007. Chipotle operates 547 outlets in 25 states. (Denver<br />
Post 1/09/07)<br />
Chipotle Mexican Grill Inc. plans to open 12 new units in the New York metro area this year. Manhattan is the first location to<br />
receive five new stores. (Newyorkbusiness.com 2/21/07)<br />
Chipotle Mexican Grill plans to open between 110 and 120 locations this year. The chain already opened 28 restaurants in the<br />
first quarter of 2007 and is planning more due to positive quarterly results. (Globest.com 5/2/07)<br />
Chipotle Mexican Grill Inc. will open three locations in the South End Boston market. The first of the three opened in Matthews<br />
at N.C. Highway 51 and Independence Boulevard. The second will open in South End in July and the third is planned for<br />
Cotswold on Providence Road. in September. (Bizjournals.com 5/18/07)<br />
Chipotle Mexican Grill will open its first Springfield, MO, unit on June 28. This unit will join Missouri’s four St. Louis-area<br />
locations in serving only naturally raised meats. (News-leader.com 6/18/07)<br />
Chipotle Mexican Grill will open a new restaurant in Wauwatosa, WI. The unit will be the town’s first Chipotle location.<br />
(Smallbusinesstimes.com 7/3/07)<br />
Chipotle Mexican Grill plans to add 95-105 restaurants over the next year. The Denver based chain, which McDonald’s spun<br />
off as a public company last year, currently has 547 units in 25 states. (Denver Post Online 6/18/07)<br />
Chipotle Mexican Grill will open a unit in Tulsa, OK, on the 71st Street business corridor in late October or early November. In<br />
addition, a location in Edmond, OK, will open early next year. (Tulsaworld.com 9/1/07)<br />
Chipotle Mexican Grill will open two locations in Fort Wayne, IN, in December or January, one in the Jefferson Pointe<br />
shopping center and the other on Coliseum Blvd. (Journalgazette.net 9/5/07)<br />
Chipotle Mexican Grill Inc. opened 28 restaurants in the company’s third quarter, giving the chain a total of 88 new units in<br />
2007. The Denver-based burrito chain, with 670 restaurants nationwide, will add another 130–140 stores in 2008. In other<br />
news, Chipotle is switching to sourcing sour cream and cheese from pasture-raised cows only. Chipotle previously committed<br />
to only serving meat from animals fed a vegetarian diet and raised without antibiotics or growth hormones. (Denver Business<br />
Journal Online 10/30/07; Rocky Mountain News Online 10/31/07; NRN Daily NewsFax 11/6/07)<br />
Promotion Plans |<br />
Chipotle Mexican Grill will be giving away free food for a year to two people at a unit in Naperville, IL, on July 16. The chain<br />
and the Naperville Park District have invited the public to a wrap party in honor of the 30 winners of the “burrito hunt,” in June,<br />
in which Naperville residents searched local parks for fake burritos. Each winner received a deck of 56 Chipotle cards, each<br />
good for a free burrito bowl, taco, salad or burrito. In addition to the giveaways at the wrap party, the 30 winners of the burrito<br />
hunt will pose for pictures with their fake burritos. The first 200 party guests will be entered into a raffle for one of two chances<br />
to win free Chipotle meals for a year. Other prizes include free meal cards and T-shirts. (Dailyherald.com 7/9/07)<br />
Chipotle Mexican Grill Inc. reported for the second quarter ended June 30 net earnings increased 85.1% to $20.0 million from<br />
$10.8 million for the same period last year. Revenue rose 33.9% to $274.3 million from $205.0 million. Same-store sales grew<br />
11.6%. (Company Release 7/31/07)<br />
Chipotle Mexican Grill has signed with Slipstream Sports LLC as a co-title sponsor of the Slipstream/Chipotle Professional<br />
Cycling Team for the 2007-08 season. The team will compete in international races throughout the spring and summer,<br />
including the Amgen Tour of California, Tour of Georgia, Criterium International and possibly the Tour de France. (Fast Casual<br />
Online 9/5/07; Company Release 8/31/07)<br />
<strong>Menu</strong> Development |<br />
Chipotle Mexican Grill has switched to a sour cream that contains no rBGH, a synthetic hormone given to cows to stimulate<br />
milk. (NRN Daily NewsFax 12/21/06)<br />
Chipotle Mexican Grill has made an effort to continually increase the amount of naturally raised meat served in its restaurants.<br />
Chipotle has served only naturally raised pork since 2002 and it recently added naturally raised chicken and beef in select<br />
locations throughout the U.S. (Company Release 2/20/07)<br />
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Chipotle Mexican Grill has announced plans to use sour cream and cheese exclusively from pasture-raised cows. The move<br />
serves two purposes, according to CEO Steve Ells. First, unconfined cows will help create a more sustainable agricultural<br />
system, and second, unconfined cows produce better-tasting milk. The chain already uses all natural pork, beef, and chicken<br />
at most of its restaurants. (Chain Leader 10/31/07)<br />
International Activities |<br />
Chipotle Mexican Grill will open its first Canadian store in Toronto by the end of 2008. The unit will be one of 130–140 new<br />
stores Chipotle expects to open in 2008, with most development planned for existing markets. Chipotle is hoping to continue<br />
its international expansion with future locations in the U.K. (Globe Investor Online 10/30/07; GSR Online 10/31/07)<br />
Technology |<br />
Chipotle Mexican Grill Inc. partnered with Envysion Inc., a provider of advanced video services for improved business<br />
processes, to implement the web-based video management system in all Chipotle locations. The program allows Chipotle to<br />
improve operations and profitability by accessing recorded or live video from all locations. It also enables alerts and report in<br />
all locations. (Fastcasual.com 6/8/07)<br />
Personnel |<br />
Montgomery F. Moran, COO/President<br />
John Hartung, Chief Finance & Development Officer<br />
Jim Adams, Director of Marketing<br />
Annie Daniels, Director of Purchasing<br />
Steve Ells, CEO<br />
News & Other |<br />
Chipotle Mexican Grill Inc. reported for the third quarter ended September 30 net earnings increased 5.6% to $11.8 million<br />
from $5.1 million for the same period last year. Revenues grew 28.3% to $211.3 million from $164.6 million. Same-store sales<br />
rose 11.6%. (Company Release 10/31/06)<br />
Chipotle Mexican Grill will move its Denver headquarters to another building in Denver’s lower downtown historic district. The<br />
move is slated for late 2008 and the new headquarters will include more space. (Company Release 1/22/07)<br />
Chipotle Mexican Grill Inc. reported for the fourth quarter ended December 31 net earnings increased to $10.8 million from<br />
$4.3 million for the same period last year. Revenues grew 26.8% to $219.7 million from $173.3 million. Same-store sales rose<br />
10.1%. For the year ended December 31 net earnings rose to $41.4 million from $17.4 million for the same period last year.<br />
Revenues increased 31.1% to $822.9 million from $627.7 million. Same-store sales grew 13.7%. (Company Release 2/15/07)<br />
Chipotle Mexican Grill Inc. reported for the first quarter ended March 31 net earnings increased 55.7% to $12.4 million from $8<br />
million for the same period last year. Revenues rose 26.2% to $236.1 million from $187 million. Same-store sales grew 8.3%.<br />
(Company Release 5/1/07)<br />
Chipotle Mexican Grill saw the value of its shares double since its debut on the New York Stock Exchange last year, closing at<br />
$44. Chipotle hit a 52-week high earlier this month when its stock climbed to $88.70, more than four times its initial public<br />
offering price of $22. (Wall Street Journal Online 6/27/07)<br />
Chipotle Mexican Grill has beaten profit estimates every quarter since becoming public in January 2006. In early May, the<br />
company reported a 46% increase in first-quarter earnings. (Cnnmoney.com 7/2/07)<br />
Chipotle Mexican Grill Inc. stocks decreased $4.79 to $85.73 this week. The decline was the chain’s first since June 22.<br />
(Rockymountainnews.com 7/21/07)<br />
Chipotle Mexican Grill Inc. shares rose 7.3% to $94.80 in a pre-market session on August 1. An analyst at RBC Capital had<br />
raised the company’s 52-week price target to $109 per share from $77 per share. (Tradingmarkets.com 8/1/07)<br />
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Chipotle Mexican Grill Chief Executive Officer and Chairman Steve Ells sold 50,000 shares of common stock under a<br />
prearranged trading plan for $90–$91.26 per share on August 2. (Associated Press 8/3/07)<br />
Chipotle Mexican Grill boosted third-quarter revenue nearly 36% over the third quarter of 2006. The increase in revenue<br />
comes from high customer traffic and the addition of 28 more branches than in the same quarter last year. (Nation’s<br />
Restaurant News 10/31/07)<br />
Chipotle Mexican Grill Inc. says it will no longer serve cheese produced by cows treated with the growth hormone rBGH. The<br />
switch to rGBH-free cheese will be complete by the end of the year. (Cnn.com 11/05/07)<br />
Chipotle Mexican Grill chairman and CEO Steven Ells disclosed a number of insider sells in November that totaled 200,000<br />
shares. (Streetinsider.com 11/13/07)<br />
Chipotle Mexican Grill has introduced naturally raised chicken to all of its 28 Arizona restaurants, and naturally raised chicken<br />
and beef to its seven Nevada restaurants. In addition to serving naturally raised pork in all its restaurants, the chain now<br />
serves naturally raised chicken in more than 80% of its stores, and nearly half its restaurants serve naturally raised beef.<br />
(Yahoo! Finance 11/26/07)<br />
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172
Chuck E. Cheese's<br />
Headquarters<br />
4441 W. Airport Freeway, Irving, Texas 75062 USA<br />
Tel: (972)258-8507 Fax: (972)258-5524<br />
www.chuckecheese.com<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 588,000 551,855 532,160<br />
Company-owned ($000) 545,000 505,855 482,160<br />
Franchised ($000) 43,000 46,000 50,000<br />
U.S. Number of Units 529 513 489<br />
Company-owned 491 475 449<br />
Franchised 38 38 40<br />
International Sales ($000) 13,000 8,000 6,000<br />
International Units 14 7 6<br />
Average Sales/Unit ($000) 1,125 1,100 1,120<br />
Concept Positioning |<br />
Chuck E. Cheese is a limited-service restaurant that specializes in pizza. Parent company CEC Entertainment operates the<br />
family-focused restaurants that market both food and entertainment—heavily skewed to children—under the trade name<br />
Chuck E. Cheese's. The restaurants offer families an entertainment experience that includes games, rides, prizes, and, of<br />
course, pizza. The atmosphere attracts families for everyday fun and special occasions and the primary customer base<br />
consists of families with children between the ages of two–12. Popular for its pizza, the chain also menus salads, sandwiches<br />
and desserts that appeal to all ages. CEC Entertainment operates approximately 93% of its units; the remaining restaurants<br />
are franchised. There are over 500 locations in the U.S. and Canada. Chuck E Cheese restaurants are in every U.S. state<br />
except Utah and New Hampshire.<br />
The restaurants are usually located in shopping centers or are freestanding. Units typically range from 8,000–14,000 sq. ft.<br />
Dining rooms, which seat 250–375 customers, are decorated in bright colors and feature a variety of musical entertainment by<br />
life-size, computer-controlled robotic characters. The dining room occupies approximately 25% of each restaurant's public<br />
area, and another 60% by its activity centers of family-oriented games, kiddie rides, arcade style games, video games and<br />
skill-oriented games. Renovation projects to keep the entertainment portion competitive have been ongoing. More games and<br />
rides including a Sky Crawl play area, as well as animatronics show tapes were part of an initial package. A security system to<br />
keep its young customers in the restaurant was also added. The latest phase includes new toddler play areas, skill games and<br />
rides as well as a prize area and sky-tube enhancements. A third of CEC Entertainment's sales are generated from its games<br />
and merchandise.<br />
In 1977, Nolan K. Bushnell, the founder of Atari, opened the first Chuck E. Cheese's Pizza Time Theatre center in San Jose,<br />
CA. At the same time, a similar concept called ShowBiz Pizza debuted, with the two becoming one company in 1985. Its<br />
current corporate name was adopted in 1998. In mid-2006, CEC Entertainment announced a plan to slow growth of new units<br />
in order to shift focus toward revamping the interior of existing locations. This new direction will involve the expansion of its<br />
average restaurant size and improvements to the game packages available to customers.<br />
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<strong>Menu</strong> Positioning |<br />
Chuck E. Cheese is open for lunch, dinner and entertainment. The menu features appetizers, salads, sandwiches, pizza,<br />
desserts and beverages. Its signature items are its pizzas, including Super Combo, All-Meat Combo, BBQ Chicken and<br />
Vegetarian. Pizzas are available in mini, small, medium and large sizes. Other menu items include Buffalo Wings, Mozzarella<br />
Sticks, Oven Roasted Sandwiches, Hot Dog, Apple Dessert Pizza, Cinnamon Sticks, and an all-you-can-eat salad bar. Beer<br />
and wine is available in select locations. Family Value meals are offered, which include pizza, soft drinks and game tokens for<br />
$19.99–$36.99. <strong>Menu</strong> prices range from $5.49–$18.99 for pizzas and $1.99–$6.49 for individual menu items. Checks average<br />
$10.50.<br />
Promotion Plans |<br />
Chuck E. Cheese is celebrating its 30th anniversary with coupons and deals downloadable at the company’s website. The<br />
deals include one large pizza, three soft drinks and 30 game tokens for $19.99; one large pizza, four soft drinks and 100 game<br />
tokens for $30; a buy 50 tokens, get 50 tokens free for $12.50 offer; and a buy 30 tokens, get 30 tokens free for $7.50 offer.<br />
The offers are valid until September 30. (Pizzamarketplace.com 9/4/07)<br />
Chuck E. Cheese will limit marketing to children. U.S. Rep. Ed Markey, chairman of the House Telecommunications & Internet<br />
Subcommittee, had asked Chuck E. Cheese and other companies to voluntarily limit advertising to kids to help fight childhood<br />
obesity. Richard Frank, chairman of Chuck E. Cheese parent CEC Entertainment, agreed that the company would not use<br />
product placement, would reduce the use of third-party licensed characters in ads, and would limit the showing of food<br />
products to children under 10. In addition, the company said it would promote physical activity. (Broadcastingcable.com<br />
10/11/07)<br />
Personnel |<br />
J. Roger Cardinale, Executive VP Purchasing<br />
Richard T. Huston, E.V.P. of Marketing<br />
Randy Forsythr, S.V.P. of Operations<br />
Joe Elliott, V.P. of <strong>Menu</strong> Development<br />
Richard Frank, CEO<br />
Chris Morris, CFO<br />
News & Other |<br />
CEC Entertainment Inc. reported for the third quarter ended October 1 net earnings increased 17% to $17.5 million from $14.9<br />
million for the same period last year. Revenues grew 8.4% to $194.7 million from $179.6 million. Same-store sales rose 5.0%.<br />
(Company Release 10/31/06)<br />
CEC Entertainment Inc. reported for the fourth quarter ended December 31 net earnings increased 13% to $12.1 million from<br />
$10.7 million for the same period last year. Revenues grew 7.4% to $176.3 million from $164.1 million. Same-store sales rose<br />
3.8%. For the year ended December 31, net earnings decreased 1.9% to $68.5 million from $69.8 million for the same period<br />
last year. Revenues grew 6.6% to $774.2 million from $726.2 million. Same-store sales rose 2.7%. (Company Release 3/6/07)<br />
CEC Entertainment Inc. reported for the first quarter ended April 1 net earnings increased 10.7% to $32 million from $28.9<br />
million for the same period last year. Revenues rose to $232.9 million from $227 million. Same-store sales grew 0.5%.<br />
(Company Release 5/1/07)<br />
CEC Entertainment Inc. Chief Executive Officer, Richard M. Frank, sold 155,000 of the company’s shares. The shares were<br />
reportedly sold on May 9 for $38.59 apiece. (Associated Press 5/14/07)<br />
Chuck E. Cheese is attributing its profit decline to entertainment competition from summer movie hits, including Shrek 3,<br />
Spiderman 3 and Pirates of the Caribbean 3. The pizza-and-games chain said its sales trend over the last 11 weeks of the<br />
second quarter was approximately 8% below the sales trend for 2006; movie box-office receipts for the second quarter<br />
increased by 55% over the second quarter of last year. CEC Entertainment, the parent company of Chuck E. Cheese, will<br />
open 10 new stores this year and make major renovations at 155 existing restaurants. The company also plans 18 store<br />
expansions and 85–90 game expansions. CEC operates 487 of the 531 Chuck E. Cheese restaurants in 48 states. (Dallas<br />
Business Journal Online 7/25/07)<br />
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Burger King Holdings Inc., CEC Entertainment Inc., McDonald’s Corp., Wendy’s International Inc. and Yum! Brands Inc. have<br />
been issued subpoenas by the Federal Trade Commission to disclose their marketing activities and expenditures targeting<br />
children and adolescents. The subpoenas were issued in response to a Congressional mandate to investigate how food<br />
marketers target children. The restaurant companies must submit documented information on their marketing practices by<br />
November 1, 2007. (NRN Daily NewsFax 8/13/07)<br />
Chuck E. Cheese and uWink creator Nolan Bushnell is bringing the uWink food and entertainment concept to Canada. The<br />
joint venture between uWink Inc. and Canadian venture capital firm Jefferson Partners. The concept allows customers to place<br />
orders using a touchscreen mounted onto the tabletop. The touch screens also double as entertainment in the form of video<br />
games. The first Canadian location is slated to open in 2008. (Ontario Restaurant News 10/18/07)<br />
CEC Entertainment Inc. reported for the third quarter ended September 30 net earnings declined 7.6% to $15.9 million from<br />
$17.2 million for the same period last year. Revenues increased 1.4% to $197.5 million from $194.7 million. Same-store sales<br />
fell 2.5%. (Company Release 10/23/07)<br />
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175
Church's Chicken<br />
Headquarters<br />
980 Hammond Dr. Suite 1100, Atlanta, Georgia 30328 USA<br />
Tel: (770)350-3800 Fax: (770)512-3920<br />
www.churchs.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 772,000 772,649 756,767<br />
Company-owned ($000) 225,000 226,188 215,144<br />
Franchised ($000) 547,000 546,461 541,623<br />
U.S. Number of Units 1,190 1,186 1,220<br />
Company-owned 279 277 283<br />
Franchised 911 909 937<br />
International Sales ($000) 235,000 215,616 195,597<br />
International Units 385 358 333<br />
Average Sales/Unit ($000) 650 676 625<br />
Concept Positioning |<br />
Church’s Chicken is one of the world’s leading quick-service chains specializing in fried chicken. The fast-food restaurant is<br />
best known for its Southern-style chicken, served in spicy or original flavors. Franchisees operate more than 80% of the units.<br />
Most units are freestanding and located in densely populated urban and suburban areas. Units average 1,200 sq. ft. and seat<br />
approximately 40. Nontraditional sites, such as convenience stores, require as little as 450 sq. ft. Takeout and drive-thru<br />
services are also offered and account for approximately 82% of total sales.<br />
George W. Church opened the first Church’s Fried Chicken to Go in 1952 in San Antonio. The company quickly expanded and<br />
opened its first international location in Japan in 1979. There are currently international locations in Puerto Rico, Canada,<br />
Malaysia, Mexico and Taiwan, under the brand name of Texas Chicken. The company was sold to AFC Enterprises in 1992. In<br />
2004, AFC sold Church’s Chicken to Crescent Capital Investments, Inc. (CCI), the parent of Caribou Coffee, for $390 million.<br />
CCI is an Atlanta-based private equity firm. In 2005, CCI and its parent company, First Islamic Investment Bank, changed their<br />
name to Arcapita Inc. Church’s projects future franchise expansion, but targeted markets have not been specified. The<br />
company plans to expand the chain from 1,500 to 2,500 restaurants by 2010 as well as launch more co-branded units with<br />
White Castle.<br />
<strong>Menu</strong> Positioning |<br />
Church's Chicken offers fried chicken by the box, by the piece or in combinations for lunch and dinner. Church’s uses broiler<br />
chickens, bought fresh and cut into eight pieces, then marinated, floured and battered before deep-frying. The marinade, flour,<br />
batter and seasoning mixes used are required proprietary products. Church’s also offers seafood and frequent limited-time<br />
offers. Side items include fries, mashed potatoes and gravy, coleslaw, corn on the cob, fried okra, jalapeño peppers, Jalapeño<br />
Cheese Bombers and honey butter biscuits. Signature sauces are the Purple Pepper Sauce, ranch, creamy jalapeno, sweet<br />
and sour, barbecue and honey mustard. Other menu options include glazed apple pies and soft drinks. <strong>Menu</strong> prices range<br />
from 99¢-$7.99 and checks average $4.<br />
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Expansion Plans |<br />
Church’s Chicken has purchased 10 Popeyes Chicken and Biscuits units in Rio Grande Valley, TX. This brings the total<br />
number of Church’s Chickens outlets in this area to 39, accounting for more than 50% of the local quick-service chicken<br />
market. (NRN Daily NewsFax 2/14/07)<br />
Franchise Activity |<br />
Church’s Chicken plans to add 20 new locations in Denver by 2013. Pollos Del Centro, a Texas-based company, has been<br />
awarded franchising rights to build the 20 units. Currently, the company is constructing two units expected to open by the end<br />
of this year. The development will include units in Commerce City, Colorado Springs, Aurora and Lakewood and will be<br />
freestanding, averaging 1,500 sq. ft.–2,000 sq. ft. (Company Release 6/4/07)<br />
Church’s Chicken partnered with the Sunbelt Business Brokers investment firm to recruit new franchisees. Church’s Chicken is<br />
attempting to step up its already aggressive franchisee recruiting efforts. Church’s currently has plans for 20 new units to open<br />
in Denver over the next six years. (Company Release 6/14/07)<br />
Church’s Chicken sold franchising rights to Pollos Del Centro to develop 20 Church’s Chicken units in the Denver area by<br />
2013. The first two are slated to open by the end of the year. Pollos’ territory includes Lakewood, Aurora, Commerce City and<br />
Colorado Springs. (Nation’s Restaurant News 7/3/07 p58)<br />
Church’s Chicken franchisee Cajun Operating Co. has agreed to buy 20 restaurants in Louisiana from Wetco Restaurant<br />
Group LLC for $10.9 million. Baton Rouge, LA-based Wetco has been struggling with sales since Hurricane Katrina in 2005.<br />
The company filed for bankruptcy in late September and shut eight of its 30 Church’s restaurants in Louisiana and Tennessee.<br />
Church’s Chicken owns and franchises 1,600 units in 18 countries. (Nation’s Restaurant News Online 10/4/07)<br />
International Activities |<br />
Church’s Chicken opened its 400th restaurant in Guyana. The company plans to add two more locations in the area. Currently,<br />
Church’s Chicken has three units in Guyana. (Company Release 2/5/07)<br />
Church’s Chicken is expanding from the U.S. to Russia with plans to open 25-30 outlets in the next three years. The<br />
franchised locations will be centered in Moscow and St. Petersburg. (Russia & CIS General Newswire 5/24/07; Restaurants &<br />
Institutions Online 5/24/07)<br />
Personnel |<br />
Harsha Agadi, CEO<br />
Louis Perfumo, CFO<br />
James Caldwell, V.P. of Purchasing<br />
James Parish, COO<br />
Darrel Suderman, V.P. of Research & Development<br />
Farnaz Wallace, CMO<br />
News & Other |<br />
Shoney’s Restaurants has been acquired by Royal Hospitality Corp., the largest franchisee of Church’s Chicken’s. In early<br />
2007, Royal Hospitality acquired the trademark and all franchise rights to Shoney’s name; the purchase of the 52 companyowned<br />
Shoney’s will take place in early February. Terms of the agreement were not disclosed. Shoney’s operates and<br />
franchises 282 restaurants nationwide. (Nation’s Restaurant News Online 1/02/07; NRN Daily NewsFax 1/03/07; Company<br />
Release 1/02/07; Philly.com 1/02/07)<br />
Popeyes Chicken & Biscuits’ owner AFC Enterprises has filed a $20-million lawsuit against Church’s Chicken and a former<br />
Popeyes franchisee for the recent purchase of 10 Popeyes outlets in Rio Grande Valley, TX. The lawsuit claims that former<br />
AFC franchisee CVI Co. Ltd. broke its contract with the company when it sold the restaurants to Church’s late last year.<br />
Church’s says that the lawsuit is without merit and that it was approached by an unidentified party for the sale. (The Atlanta<br />
Journal-Constitution 3/01/07–3/05/07; NRN Daily NewsFax 3/01/07; Company Release 2/28/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
177
CiCi's Pizza<br />
Headquarters<br />
1080 W. Bethel Rd., Coppell, Texas 75019 USA<br />
Tel: (972)745-4200 Fax: (972)745-4203<br />
www.cicispizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 540,918 490,330 434,486<br />
Company-owned ($000) 16,091 14,751 19,630<br />
Franchised ($000) 524,827 475,579 414,856<br />
U.S. Number of Units 601 579 517<br />
Company-owned 16 15 16<br />
Franchised 585 564 501<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 907 900 899<br />
Concept Positioning |<br />
CiCi’s Pizza is a unique concept founded on its affordably-priced, all-you-can-eat buffet featuring pizza, pasta, salad and<br />
dessert. Texas-based CiCi’s Pizza operates approximately 600 restaurants in 29 states.<br />
Open seven days a week from 11 a.m. to 10 p.m. (11 p.m. on Fridays and Saturdays), the units average 3,400–4,200 sq. ft,<br />
with seating for 180. Most are either freestanding or located in highly visible shopping centers in small- to medium-sized towns<br />
of 50,000 or greater or in the suburban areas of major metropolitan centers. The interior décor includes light green walls, wood<br />
trim, earth-tone flooring and a mixture of booths and umbrella-covered picnic tables for seating, which gives the atmosphere a<br />
lighter, brighter feel. Dine-in and carryout services are available.<br />
Founder Joe Croce opened the first CiCi’s Pizza in Plano, TX, in 1985. Today, the chain is headed by President Craig Moore.<br />
CiCi’s franchise program is facilitating its growth nationwide, with hopes of opening 80–100 units per year over the next five<br />
years. The company has signed development agreements to add 64 units in Florida, Indiana, Kentucky, Louisiana, Michigan,<br />
New Mexico, Ohio, Texas and Virginia.<br />
<strong>Menu</strong> Positioning |<br />
CiCi’s Pizza menus an all-you-can-eat buffet that includes 16 varieties of round and deep-dish pizzas, pasta, pizza rolls, garlic<br />
cheese bread, salad and a variety of desserts. The chain also offers special-order and specialty pizzas. Toppings include<br />
green peppers, onions, mushrooms, jalapeños, black and green olives, bacon, Italian sausage, pepperoni, ground beef and<br />
100% real mozzarella cheese. Popular pizzas include Alfredo, BBQ, Pizza Olé, Zesty Ham & Cheese, Spinach Alfredo and<br />
Buffalo Chicken pizza. No alcohol is available. The all-you-can-eat buffet menu price is priced under $5. Checks average<br />
$7.87.<br />
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published.<br />
178
Expansion Plans |<br />
Peach’s Rise & Dine Restaurants inked an agreement with PR&D of DFW Inc. to open a minimum of 20 units in the Dallas/Ft.<br />
Worth market. PR&D of DFW Inc. also operates Cici’s Pizza restaurants in Texas and Florida as well as several Firehouse<br />
Subs locations in the Dallas/Ft. Worth area. (Company Release 12/12/06)<br />
CiCi’s Pizza, the fastest growing chain in its segment, plans to expand to 1,000 units by 2010. By the end of 2006, the chain<br />
boasted 603 units, thanks to its first national marketing campaign. (Nation’s Restaurant News 7/3/07 p102–106)<br />
Promotion Plans |<br />
Cici’s Pizza debuted a new marketing campaign that positions the chain as a low priced, value-oriented brand for families. The<br />
national campaign includes radio ads, billboards, sponsorships and 15- and 30-second spots. The TV commercials use humor<br />
to highlight the chain’s menu options and family-friendly attitude. The chain hopes to have 1,000 units within the next five<br />
years. Cici’s Pizza currently operates 600 outlets in 27 states. (Chain Leader 12/06 p14)<br />
<strong>Menu</strong> Development |<br />
Cici’s Pizza introduced a Buffalo Chicken Pizza made with white chicken meat on a crispy crust and covered with red-hot<br />
Buffalo wing sauce. (Company Promo; Company Website)<br />
Cici’s Pizza will remove trans fats from its food items by year’s end. The chain said that a number of its pizza toppings and<br />
salad dressing are already trans fat-free. Cici’s operates 615 outlets nationwide. (NDN Daily NewsFax 7/11/07; Company<br />
Release 7/09/07)<br />
Technology |<br />
CiCi’s Pizza has redesigned its company Intranet site, MyCiCis.net, to streamline all communication between franchise owners<br />
and corporate headquarters. The site offers tools and information updates including personal e-mail accounts and local store<br />
marketing tactics. (Pizza Marketplace Online 8/31/07)<br />
Personnel |<br />
Forbes Anderson, CFO<br />
Kyle Smith, V.P. of Operations<br />
Craig Moore, President<br />
Tom Koenigsberg, CMO<br />
Robert Parent, V.P. of Development<br />
CiCi’s Pizza promoted Kyle Smith to Vice President of Operations and Steve Hawter to Vice President of Training. Previously,<br />
Smith served as Director of Operations and Hawter served as Director of Training. (NRN Daily NewsFax 6/7/07)<br />
News & Other |<br />
CiCi’s Pizza ended its peel-and-win 32-oz. cup promotion and announced prize winners. Bill Mulroy of Inman, SC, won an<br />
HDTV, and Jonda Raborn of China Spring, TX, won an iPod. Other prizes included free buffets, soft drinks and free toppings<br />
on any takeout pizza. (Pizzamarketplace.com 9/10/07)<br />
CiCi’s Pizza units in Atlanta are asking guests not to use trays in order to conserve water during one of the most severe<br />
droughts in Georgia’s history. The company said that not using the trays would mean fewer dishwasher cycles at the 21 CiCi’s<br />
pizza buffet restaurants in the Atlanta area. (NRN.com 11/13/07)<br />
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published.<br />
179
Cinnabon<br />
Headquarters<br />
200 Glenridge Point Pkwy. Suite 200, Atlanta, Georgia 30342 USA<br />
Tel: (404)255-3250 Fax: (404)255-4978<br />
www.cinnabon.com<br />
Ownership: Private<br />
Segment: Limited Service Snack<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 169,000 163,874 163,927<br />
Company-owned ($000) - - -<br />
Franchised ($000) 169,000 163,874 163,927<br />
U.S. Number of Units 419 394 400<br />
Company-owned - - -<br />
Franchised 419 394 400<br />
International Sales ($000) 61,000 52,287 44,070<br />
International Units 272 235 215<br />
Average Sales/Unit ($000) 415 413 405<br />
Concept Positioning |<br />
Cinnabon is a quick-service chain of specialty bakeries offering a wide selection of cinnamon rolls for breakfast and snacks.<br />
FOCUS Brands, the parent company of Cinnabon, owns over 600 locations in 31 countries. Approximately 90% of Cinnabon<br />
units are franchised.<br />
Units are primarily inline or kiosks located in shopping malls, supermarkets and airports. The average unit is approximately<br />
700 sq. ft. Customers walk up and order from display cases. The chain has undertaken a remodeling program, which includes<br />
the debut of a new prototype. Approximately 60 units, more than one-third of its company-owned locations, have been updated<br />
to reflect the new design.<br />
Richard Komen and his company, Restaurants Unlimited, opened the first Cinnabon in a mall in SeaTac, WA, in 1985.<br />
Franchising activities began shortly thereafter. In 1996, the chain was separated from RUI, and Cinnabon, Inc. was acquired in<br />
1998 by AFC Enterprises for $65 million. FOCUS Brands, Inc. purchased Cinnabon from AFC in 2004 for $21 million. Though<br />
the company plans to expand in existing global markets, target areas have not been identified.<br />
<strong>Menu</strong> Positioning |<br />
Cinnabon's quick-service menu features freshly baked cinnamon rolls and beverages. The Cinnabon Classic Cinnamon Roll is<br />
the chain’s signature item. Cinnamon rolls are filled with Makara cinnamon and topped with cream cheese frosting. Other<br />
menu items include the Minibon, Caramel Peaconbon, Berrybons, Apple Minibon, CinnabonStix and CinnaPacks. Frozen<br />
drinks such as Mochalatta Chill, Coffeelatta Chill and CarameLatta Chill are available blended or iced. Other beverage items<br />
are hot and iced coffee, hot chocolate, tea, lemonade and orange juice. <strong>Menu</strong> prices range from $2.75–$14.99 and checks<br />
average $5.34.<br />
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published.<br />
180
<strong>Menu</strong> Development |<br />
Schlotzky’s Ltd. is testing Carvel and Cinnabon items at two Schlotzky’s restaurants in Austin, TX. The outlets will serve<br />
Carvel’s soft-serve and hand-dipped ice cream flavors in cups, cones, sundaes and shakes. Cinnabon offerings include<br />
Classic Rolls, Caramel Pecanbons, Cinnapacks and Cinnabonstix. The locations will also serve Cinnabon’s CarameLatte<br />
Chills, MochaLatta Chills and Chillattas products. (Company Release 3/29/07; NRN Daily NewsFax 3/30/07)<br />
Cinnabon debuted Cinnamon Churros as a limited-time offer for $1.99. The warm, sweet dough spiral is filled with Makara<br />
Cinnamon with a cinnamon-sugar coating on the outside. (Company Website)<br />
Cinnabon premiered Lemonade Chillatas, available in Classic Lemonade or Strawberry-Lemonade flavors. (Company<br />
Website)<br />
Franchise Activity |<br />
Schlotzky’s Ltd. was purchased by Focus Brands of Atlanta for an undisclosed amount. Focus, which is owned by Roark<br />
Capital Group, franchises and operates about 1,400 outlets of Carvel Ice Cream, Cinnabon and Seattle’s Best Coffee in the<br />
U.S., Puerto Rico and 31 international countries. Schlotzky’s has 365 franchised and company-owned outlets. (Austin<br />
Business Journal 11/20/06; Atlanta Business- ournal-Constitution 11/21/06; NRN Daily NewsFax 11/21/06; Company Release<br />
11/21/06)<br />
Personnel |<br />
Leonore Krentz, CFO<br />
Rich Kamph, V.P. of Purchasing<br />
Debbie Rowley, V.P. of Operations<br />
Gary Bales, President<br />
Greg Regian, CMO<br />
Stan Dorsey, V.P. Research & Development<br />
News & Other |<br />
BYB Brands Inc., and Cadbury Schweppes Americas Beverages inked a deal to distribute Cinnabon Premium Coffee Lattes<br />
nationwide. Cinnabon Premium Coffee Lattes come in four flavors: Mocha Latte, Caramel Nut Latte, Cinnamon Vanilla Latte<br />
and Espresso & Cream. Cadbury Schweppes will distribute the coffee through its subsidiaries Cadbury Schweppes Bottling<br />
Group and Snapple Distribution Co. (Company Release 1/11/07)<br />
FOCUS Brands plans to test co-branded outlets of Cinnabon, Schlotzsky’s and Carvel Ice Cream in three to five corporate<br />
stores this year. If these co-branded units are successful, the company expects to offer the brands to franchisees by late 2007.<br />
Focus operates 365 Schlotzsky’s, 394 Cinnabons and 536 Carvel Ice Cream units nationwide. (QSR Magazine 2/07 p13)<br />
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published.<br />
181
Claim Jumper<br />
Headquarters<br />
16721 Millikan Ave., Irvine, California 92606 USA<br />
Tel: (949)756-9001 Fax: (949)756-8733<br />
www.claimjumper.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 285,000 250,000 225,000<br />
Company-owned ($000) 285,000 250,000 225,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 41 38 33<br />
Company-owned 41 38 33<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 7,200 7,100 7,000<br />
Concept Positioning |<br />
Claim Jumper is a full-service varied-menu chain.offering a large menu in a warm, comfortable, rustic setting. Steaks, fresh<br />
seafood and wood-fired pizzas are just a few of the freshly prepared menu items offered. The chain is owned by Claim Jumper<br />
Restaurant LLC, which operates 41 locations in the U.S., all company-owned.<br />
With one exception, all restaurants are freestanding. Units average 10,500-15,000 sq. ft. with seating for more than 500<br />
patrons. Decor features Douglas Fir logs, natural rock, corrugated and pressed tin, natural and finished woods and large<br />
fireplaces. Lobbies, dining rooms and saloons are furnished with rich fabrics, authentic log chairs and colorful Tiffany lamps.<br />
Many locations feature semi-open kitchens; guests can watch pizzas being prepared in an authentic wood-burning oven and<br />
see salad, soup and dessert preparation.<br />
Claim Jumper was opened in Los Alamitos, CA in 1977 by Craig Nickoloff. In 2005, Claim Jumper sold a majority stake to<br />
private equity firm Leonard Green & Partners LP for nearly $250 million. The company plans to launch almost a dozen new<br />
units through 2007, in markets such as Indianapolis, St. Louis and Columbus, OH. Claim Jumper is also eyeing sites in the<br />
Carolinas, Florida, Arizona, California and Washington as well as suburban Chicago. To facilitate its plan for aggressive<br />
growth, the company is currently considering a sale or public stock offering.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
182
<strong>Menu</strong> Positioning |<br />
Claim Jumper's extensive menu features appetizers, soups and salads, burgers and signature sandwiches, specialties,<br />
rotisserie items, steaks, fish, pasta, pizza and calzones, sides, desserts and beverages. Signature menu items include Black<br />
Tie Pasta—bowtie pasta, spinach tortellini, blackened chicken breast and rich cream sauce; Honey Blonde Fish & Chips—<br />
halibut dipped in Honey Blonde Ale batter and fried, served with steak fries and slaw; Chilled Cashew Chicken Sandwich—<br />
chilled white-meat chicken tossed with cashews, celery, curry and mayo, served on tomato-herb bread; Frisco Burger—½pound<br />
burger served on a grill-toasted Parmesan sourdough bun with Swiss cheese, pickles, Thousand Island dressing,<br />
tomato and iceberg lettuce; and Whiskey Chicken—roast chicken breast glazed and stuffed with apple stuffing, served with<br />
mashed potatoes and buttermilk biscuits. In 2006, the chain increased seafood additions with an ethnic spin, including<br />
Oaxacan Sea Bass in tomato-herb broth and Seared Ahi Tuna served Mediterranean-style with cucumbers, capers, feta<br />
cheese and almonds. Desserts and muffins are made on-premise daily; popular items include the Six-layer Chocolate<br />
Motherlode Cake, Scratch Carrot Cake, I-Declair and Original Sourdough Bread Pudding. Full liquor service includes privatelabel<br />
beers, including Hefeweizen, Honey Blonde Ale and Original Red Ale. Senior menu and kids’ menu are available. <strong>Menu</strong><br />
prices range from $7.95–$29.95. Checks average $24.<br />
Promotion Plans |<br />
Claim Jumper has teamed up with the Nevada Childhood Cancer Foundation as part of the grand opening of the chain’s third<br />
Las Vegas location. During the promotion, Claim Jumper will donate 100% of the money raised from the sale of its Chocolate<br />
Motherlode Cake to the NCCF. The promotion is slated to run November 15-18. (Businesswire.com 11/14/07)<br />
Personnel |<br />
John Merlino, Executive Chef<br />
Nick Nickoloff, Director of Marketing<br />
Craig Nickoloff, CEO<br />
Bill Hustedt, CFO<br />
David Wicker, V.P. of Purchasing<br />
Robert Ott, President/COO<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
183
Coco's Bakery Restaurant<br />
Headquarters<br />
5780 Fleet Street Suite 250, Carlsbad, California 92008 USA<br />
Tel: (760)804-5750 Fax: (760)476-5141<br />
www.cocosbakery.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 185,000 183,121 182,462<br />
Company-owned ($000) 146,000 144,981 136,464<br />
Franchised ($000) 39,000 38,140 45,998<br />
U.S. Number of Units 116 114 132<br />
Company-owned 91 90 92<br />
Franchised 25 24 40<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,625 1,606 1,382<br />
Concept Positioning |<br />
Coco’s Bakery Restaurant is a full-service family-style chain specializing in pastries such as freshly baked pies, cookies,<br />
cakes, muffins, bread and biscuits along with several signature entrées for all three dayparts. Coco’s promotes itself as a<br />
traditional bakery that also offers innovative menu items. Coco’s Bakery Restaurants Inc., under parent Zensho America<br />
Corp., operates company-owned units in California, Arizona, Colorado, Nevada and Washington.<br />
Units are freestanding buildings located close to high-traffic areas such as shopping centers. The interior includes a warm<br />
contemporary décor accented with food-themed hues like sage, eggplant, cranberry and burgundy. Rich, textured walls and<br />
large colorful murals add to the cozy yet vibrant environment.<br />
Coco’s was founded in 1962 by Jon and Audrey McIntosh. In 1965, all McIntosh's restaurant ventures were combined into one<br />
company called Far West Services. In 1996, Advantica Restaurant Group completed its acquisition of Far West Services.<br />
Domestic franchising began in 1992 following earlier licensing in the international market, particularly Japan and South Korea.<br />
In early 2000, Advantica announced its intent to sell the chain. In 2001, FRD Acquisition Co., Advantica’s wholly-owned<br />
subsidiary that held controlling interest in Coco’s as well as the Carrows chain, filed Chapter 11 bankruptcy to facilitate<br />
Advantica’s divestiture of the two chains. FRD Acquisition, a former subsidiary of Advantica Restaurant Group, took control of<br />
the Carrows and Coco’s brands in July 2002 after Advantica divested the two concepts and changed its name to Denny’s<br />
Corporation. Soon afterwards, Catalina Restaurant Group Inc. bought the chains from FRD Acquisition. In mid-2006, Catalina<br />
Restaurant Group merged with Zensho America Corp., a subsidiary of Tokyo-based Zensho Co. Ltd., which operates 1,859<br />
restaurants throughout Japan.<br />
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published.<br />
184
<strong>Menu</strong> Positioning |<br />
Coco's varied menu features appetizers, salads, soups and dinner entrées. Its signature items include baked goods, pies,<br />
muffins and cookies. Some favorite entrée selections include steak, fish, hamburgers, deli sandwiches, omelettes, pasta and<br />
lighter options such as soup and salad combos. Other popular menu items include Parmesan Herb Onion Rings, Tuscan<br />
Ribeye Steak, Southwest Chicken Salad and Bourbon-Glazed Steak with Shrimp. Breakfast features traditional favorites such<br />
as French toast, eggs, bacon, ham and sausage. Bakery items include fruit pies and cream pies. Select units offer beer and<br />
wine. Some units also offer espresso bars. Senior citizen and kids menus are available. <strong>Menu</strong> prices range between $2.99 and<br />
$13.99. Checks average $7.50.<br />
<strong>Menu</strong> Development |<br />
Coco’s Bakery Restaurant is offering Winter Wonders Breakfast Selections for a limited time. Items include Multi-Grain & Nut<br />
Pancakes Combo, with three multi-grain and nut pancakes, two eggs and applewood-smoked bacon or sausage, warm syrup<br />
and maple pecan butter; Orange Crème Brulée French Toast Combo, three slices of egg bread dipped in crème brulée batter,<br />
two eggs, applewood-smoked bacon or sausage and orange maple syrup; Bacon, Chicken & Mushroom Omelette, sautéed<br />
applewood-smoked bacon, tender chicken breast, mushrooms folded into a three-egg omelette with a side of seasoned<br />
breakfast potatoes and a choice of muffin, coffee cake, buttermilk biscuit or toast; and Breakfast Quiche, with sausage,<br />
applewood-smoked bacon, Swiss cheese and green onion in a flaky crust with a side of fresh fruit. (Company Website)<br />
Coco’s Bakery Restaurant has introduced its new Angus Steak Dinner, Angus Steak and Lobster Dinner, Angus Steak and<br />
King Crab Legs Dinner and Angus Steak and Grilled Shrimp Dinner. (Company Website 2/12/07)<br />
Personnel |<br />
Al Schulten, V.P. of Finance<br />
Samuel Nicholas Borgese, CEO<br />
Gary Ferguson, V.P. of Operations<br />
Heather Gardea, V.P. of Marketing<br />
Heather Gardea, Executive Chef/ Purchasing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
185
Cold Stone Creamery<br />
Headquarters<br />
9313 Via de Ventura, Scottsdale, Arizona 85258 USA<br />
Tel: (480)362-4800 Fax: (480)362-4812<br />
www.coldstonecreamery.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 471,000 407,000 278,493<br />
Company-owned ($000) 7,935 6,740 6,509<br />
Franchised ($000) 463,065 400,260 271,984<br />
U.S. Number of Units 1,368 1,223 897<br />
Company-owned 34 37 20<br />
Franchised 1,334 1,186 877<br />
International Sales ($000) 7,258 450 451<br />
International Units 12 1 1<br />
Average Sales/Unit ($000) 363 383 405<br />
Concept Positioning |<br />
Cold Stone Creamery is a limited-service ice-cream concept specializing in smooth and creamy premium ice cream, mixed on<br />
a frozen stone slab and served in a waffle cone or bowl. Each Cold Stone Creamery is privately owned and operated. There<br />
are currently more than 1,350 stores worldwide.<br />
The average unit size is 1,000 sq. ft., with seating for 35 guests. Stores are both freestanding and kiosks in shopping and<br />
business centers. Units are warmly lit and feature a lively red-and-white décor, with black and white tiles underfoot. Cold Stone<br />
promotes a fun and energetic atmosphere, complete with a staff that routinely sings for customers.<br />
Cold Stone Creamery was launched in 1988 in Tempe, AZ, by Donald and Susan Sutherland. In 1999, the company set a<br />
target goal of opening 1,000 stores by 2006. Eight hundred stores later, the brand has expanded to include nearly all 50 U.S.<br />
states, the Virgin Islands, Puerto Rico and Guam. More than 150 Tokyo-based units are scheduled to launch through 2009. In<br />
2006, the company signed its first master franchise agreement with Korean company CJ Foodville, which opened the first Cold<br />
Stone South Korea location in that year. The agreement calls for 150 new stores through 2012. Other targeted international<br />
locations include Canada, Australia, Germany, India, Thailand and South American nations.<br />
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186
<strong>Menu</strong> Positioning |<br />
Cold Stone Creamery's menu features ice cream, frozen yogurt, cakes, milkshakes, smoothies and beverages. The signature<br />
items are its super-premium ice cream combinations. The chain offers over 30 ice cream flavors, made fresh daily, and more<br />
than 50 mix-ins, including candy, cookies, nuts and fruits. Mix-ins are folded into the ice cream on a frozen granite slab and<br />
served in a waffle cone or bowl. Cold Stone's Originals line features customer favorites such as At The Cocoa Banana Cabana<br />
(banana ice cream, yellow cake, banana, fudge and whipped topping), Birthday Cake Remix (cake batter ice cream, rainbow<br />
sprinkles, brownie and fudge), Cookie Mintster (mint ice cream, double Oreo and fudge), and Our Strawberry Blonde<br />
(strawberry ice cream, graham cracker pie crust, strawberries, caramel and whipped topping). Ice cream flavors include,<br />
chocolate, banana, strawberry and sweet cream yogurt. Seasonal ice cream favorites include, eggnog, pumpkin, orange<br />
dreamsicle, amaretto, cinnamon and peanut butter. Cold Stone also menus lower-calorie options such as yogurt, no-sugaradded<br />
ice cream, Italian sorbet and lowfat/nonfat mix-ins. Cold Stone Cakes are available in Strawberry Passion, MMMMMint<br />
Chip, Snickers Supreme and Cookie Dough Delirium versions. Cold Stone also offers Two-To-Go items as part of its Cold<br />
Stone To Go Creations line. The offering is comprised of made-to-order combinations of ice cream flavors and mix-ins<br />
available in three sizes (Mine, $5.99; Ours, $7.99; Everybody's $10.99). Checks average $5.<br />
Expansion Plans |<br />
Cold Stone Creamery is developing 20 more stores for the Boston area. The ice cream chain currently has 17 outlets in the<br />
market and hopes to one day have at least 60. (Boston.com 3/16/07)<br />
Cold Stone Creamery plans to expand franchise operations in Massachusetts, with 30 new units planned in the area over the<br />
next three years. The chain is currently seeking franchisees. (Company Release 10/9/07)<br />
Cold Stone Creamery and Soup Kitchen International debuted the first The Original SoupMan/Cold Stone Creamery cobranded<br />
restaurant in New York City. The store, opened November 16 by franchisee Daniel Petryszyn, will serve 50 varieties<br />
of soup as well as premium ice cream. (QSRmagazine.com 11/14/07)<br />
Promotion Plans |<br />
Cold Stone Creamery named Saatchi & Saatchi as its agency of record. Responsibilities include advertising and brand<br />
strategy. (NRN Daily NewsFax 11/21/06)<br />
Cold Stone Creamery premieres its first national integrated ad initiative. Based on the concept that ice cream lovers are<br />
passionate about ice cream, “Love It Love It” ads promote Cold Stone as the prime location to go to for ice cream this summer.<br />
(Business Wire 5/21/07)<br />
<strong>Menu</strong> Development |<br />
Cold Stone Creamery is developing several items that incorporate new flavors. In Utah, the ice-cream chain tested gummystyle<br />
sorbet in cherry, orange and green apple. The dish tastes like sorbet but changes into the consistency of a gummy candy<br />
in one’s mouth. In addition, the company rolled out a dark chocolate peppermint ice cream for the holidays nationwide and a<br />
cherry blossom flavor at units in Japan this past fall. In the future the company is hoping to roll out a breakfast flavor line in<br />
cinnamon bun and French toast flavors. Cold Stone is also working on a packaged ice-cream creation, tentatively named<br />
Shock A Cone, which will feature Bavarian ice cream with chunks of chocolate and cookie dough. (AZCentral.com 10/23/06)<br />
Cold Stone Creamery is introducing smoothies made with Pepsi Cola’s Mountain Dew. (FoodInstitute.com 6/11/07)<br />
Franchise Activity |<br />
Cold Stone Creamery started franchising V’s Barbershop, a barbershop chain concept. There are five Arizona units of V’s,<br />
which is described as “authentic barbershop[s] providing traditional barbering services at reasonable prices in an upscale and<br />
uniquely masculine environment.” (NRN Daily NewsFax 4/06/07)<br />
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187
International Activities |<br />
Cold Stone Creamery plans to expand into Taiwan and China. Mainland China is expected to be home to 105 Cold Stone<br />
Creamery units and Taiwan to have 60 outlets over the next seven years. The company plans to open stores in Taipei, Taiwan<br />
and Beijing and Shanghi, China by spring 2007. (Qsrmagazine.com 11/22/06)<br />
Cold Stone Creamery inked a deal with President Chain Store Corp. to open 105 units in China and 60 in Taiwan over the next<br />
seven years. The first stores are expected to open in Beijing and Shanghai, China, and Taipei, Taiwan, by spring 2007.<br />
(Foodservice Equipment & Supplies 11/22/06; Company Release 11/16/06)<br />
Cold Stone Creamery is continuing its expansion in Asia. The company signed a letter of intent expansion in Malaysia,<br />
Singapore and Indonesia. (AZCentral.com 1/01/07)<br />
Cold Stone Creamery has inked a deal with Apparel Group to open 40 outlets in the Middle East over the next five years.<br />
United Arab Emirates-based Apparel Group will open units in Saudi Arabia, Qatar, Kuwait, United Arab Emirates, Bahrain,<br />
Oman and Jordan. The first store is slated to open in Dubai this May and another unit is expected to open in Saudi Arabia by<br />
year’s end. Cold Stone is also looking to add locations in Mexico and Indonesia as well as other international markets. (The<br />
Phoenix Business Journal 1/30/07)<br />
Cold Stone Creamery plans to open five stores in Japan this spring. The ice cream chain currently has 13 outlets in the<br />
country. (Charlotte.com 4/04/07)<br />
Cold Stone Creamery opened stores in Taiwan and mainland China. The store that opened in Shanghai, China, is the first of<br />
10 planned units in 2007. The Taiwan location that opened in Taipei is the first of five to open in the area in 2007. (Company<br />
Release 5/16/07)<br />
Cold Stone Creamery plans to expand into Mexico, Singapore, Indonesia and Malaysia. The first location in Mexico is slated to<br />
open in September, followed by three more units by the end of 2007. Cold Stone hopes to develop more than 25 units in<br />
Mexico over the next five years. Three stores in Jakarta, Indonesia, are slated to open by the end of the year, with more than<br />
40 Indonesian units opening over the next five years. Cold Stone’s international growth began in November 2005, when the<br />
company opened a store in Tokyo. Since then, Cold Stone has opened 22 stores throughout Japan, Korea, China and Taiwan.<br />
(Fast Casual Online 7/25/07; Company Release 7/24/07)<br />
Personnel |<br />
Ken Sanchez, Director of Purchasing<br />
Kevin Myers, V.P. of Sales & Marketing<br />
Doug Ducey, CEO<br />
D.J. Cole, CFO<br />
Lee Handler, COO<br />
Kevin Burnett, S. Director of Research and Development<br />
News & Other |<br />
Six Flags entered into a multi-year contract with Cold Stone Creamery. Cold Stone will open locations in Six Flags branded<br />
parks and the two companies will collaborate on marketing and promotional initiatives both in-park and at participating Cold<br />
Stone outlets around the country. Among the initiatives is an ice cream dish that will be named for Six Flags. In the first year of<br />
the companies’ collaboration, Six Flags will open eight Cold Stone outlets in its parks, including one unit offering the full Cold<br />
Stone experience. (Forbes.com 12/12/06)<br />
Cold Stone Creamery and Kahala Corp. are merging to form Kahala Cold Stone, a holding company. This move will allow the<br />
companies to compete with private-equity firms for additional restaurant acquisitions. The company’s 13 brands will include<br />
Blimpie, Ranch #1, TacoTime and Great Steak & Potato Co. Terms of the merger were not disclosed. (NRN Daily NewsFax<br />
5/11/07; Company Release 5/11/07; WashingtonPost.com 5/11/07; Nation’s Restaurant News Online 5/07/07)<br />
Cold Stone Creamery and The Original SoupMan, which is owned by Soup Kitchen International, plan to open two versions of<br />
a co-branded outlet. The first will offer the full menu of The Original SoupMan including its soups, salads, sandwiches and<br />
smoothies and the other version will offer soup only. Both will feature Cold Stone’s premium ice cream. Seven limited-menu<br />
Cold Stone-SoupMan outlets are slated to open by the end of May in Chicago; Tempe, AZ; and Long Island, NY. The two fullmenu<br />
stores will debut in New York City this summer. (Company Release 5/07/07; NRN Daily NewsFax 5/08/07)<br />
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188
The Original SoupMan and Cold Stone Creamery will debut their first co-branded unit in New York City in early November. The<br />
co-branded store will feature Cold Stone’s premium ice cream blends as well as 50 varieties of soup, each presented with a<br />
baguette, fresh fruit and a piece of imported chocolate. New York-based The Original Soup Man, which opened in 1984, was<br />
made famous in the TV sitcom “Seinfeld.” Cold Stone Creamery, based in Scottsdale, AZ, operates more than 1,400 locations<br />
in the U.S., Puerto Rico, Guam, Japan, Korea, China, Taiwan and the United Arab Emirates. (QSR Magazine Online 10/8/07)<br />
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189
Copeland's of New Orleans<br />
Headquarters<br />
1001 Harimaw Court S., Metairie, Louisiana 70001 USA<br />
Tel: (504)830-1000 Fax: (504)620-2016<br />
www.copelandsofneworleans.com<br />
Ownership: Private<br />
Segment: Full Service Other<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 88,000 104,000 109,000<br />
Company-owned ($000) 37,000 50,000 52,000<br />
Franchised ($000) 51,000 54,000 57,000<br />
U.S. Number of Units 22 33 36<br />
Company-owned 8 15 16<br />
Franchised 14 18 20<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,200 3,000 3,030<br />
Concept Positioning |<br />
Copeland’s of New Orleans is a full-service, casual-dining operation. The restaurant concept specializes in authentic Cajun<br />
entrées prepared from scratch enjoyed in an elegant setting. Units feature soft lighting and deep red booths. Units are open for<br />
lunch, dinner and weekend brunch. All of its seasonings, sauces and baked goods and blended and made onsite every day.<br />
The concept appeals to diners looking for traditional New Orleans fare. Al Copeland Investments Inc. owns Copeland’s of New<br />
Orleans. Currently, 36% of all units are company-owned while the remaining units are franchised. Copeland’s is a national<br />
chain, located as far west as New Mexico and as far east as Maryland. Most of its units, however, are located in its home state<br />
of Louisiana.<br />
Copeland's units are large and freestanding, typically located in major metropolitan areas. Units average 6,000 sq. ft. and<br />
typically have room for 400 guests. The atmosphere is casual, yet upscale, with leather and dark wood booth seating, whiteclothed<br />
tables and soft lighting. Several Copeland's locations offer patio seating and all units feature an expansive bar area<br />
where customers can enjoy drinks before or after their meal.<br />
Al Copeland, founder of the Popeyes Chicken & Biscuits concept in the 1970s, opened the first Copeland’s of New Orleans<br />
unit in 1983. Growth has come via franchising—the company aims to have 75% of its system franchisee operated. Other<br />
current Al Copeland concepts include Cheesecake Bistro, Sweet Fire & Ice, Jukebox Diner, Improv and Amor de Brazil. No<br />
long-term expansion plans for Copeland’s have been disclosed.<br />
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190
<strong>Menu</strong> Positioning |<br />
Copeland’s of New Orleans offers lunch, dinner and weekend brunch. The menu features the extensive preparation, fresh<br />
ingredients and unique spices that define Cajun cooking. Over 120 menu items are available, including traditional Cajun<br />
specialties as well as seafood, steaks and ribs. The chain emphasizes the fact that every menu item is prepared from scratch,<br />
including freshly blended seasonings, stock-based sauces and homemade biscuits. Its menu features starters, soups and<br />
salads, Po-Boys and sandwiches, fried seafood platters, steaks, seafood, chicken, Copeland’s originals, classics, fish, sides,<br />
desserts, specialty coffees and beverages. Signature items include traditional Cajun specialties like Shrimp Etouffee— Gulf<br />
shrimp in a dark roux-based sauce seasoned with garlic, green onions and spices, served over white rice; Crawfish<br />
Fettuccine—crawfish sautéed in a light cream sauce with green onions and special seasonings tossed with fettuccine; and<br />
Eggplant Pirogue—Cajun fried eggplant slices, stacked and smothered in an au gratin sauce with shrimp and crab claws,<br />
served over angel hair pasta. An extensive liquor menu features martinis, New Orleans daiquiris, ice teas and wine. A kids’<br />
menu is available. <strong>Menu</strong> prices range from $2.99–$27.99. Checks average $24.<br />
Personnel |<br />
Al Copeland, CEO<br />
Ronald Wendle, CFO<br />
Jim Shoemake, V.P. of Purchasing<br />
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191
Corner Bakery<br />
Headquarters<br />
12700 Park Central Drive Suite 1300, Dallas, Texas 75251 USA<br />
Tel: (972)619-4180 Fax: (972)788-5038<br />
www.cornerbakery.com<br />
Ownership: Private<br />
Segment: Limited Service Bakery/Café<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 180,000 182,000 167,200<br />
Company-owned ($000) 180,000 178,000 164,000<br />
Franchised ($000) - 4,000 3,200<br />
U.S. Number of Units 91 92 86<br />
Company-owned 91 89 83<br />
Franchised - 3 3<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,925 1,900 1,800<br />
Concept Positioning |<br />
Corner Bakery Café is a chain of limited-service fast-casual bakery-café restaurants specializing in an extensive selection of<br />
hand-made, hearth-baked breads served in a European-style setting. The menu also features sandwiches, salads, pastas,<br />
soups and sweets. Corner Bakery operates company-owned units under CBC Restaurant Corp., an affiliate of Il Fornaio. A<br />
newly established franchise program will fuel growth via franchising.<br />
Prototype designs vary, but most units are generally 3,000 sq. ft. with both indoor and outdoor seating for approximately 85–<br />
100 patrons. Some of the system’s early units are adjacent to Maggiano’s Little Italy restaurants. Interiors feature dark wood<br />
tables and chairs, colorful murals, tiled floors and hanging light fixtures, creating the look of an upscale, modern eatery. Units<br />
serve breakfast, lunch and dinner seven days a week. Corner Bakery also features a catering group that offers a wide range of<br />
gift baskets, trays and lunch boxes for any scale from large corporate events to small, personal brunches. Catering sales<br />
accounts for approximately 14.5% of sales while takeout accounts for some 80%.<br />
The first Corner Bakery unit was opened in 1991 by Brinker’s creative partner Lettuce Entertain You Enterprises, Inc. (LEYE),<br />
adjacent to a Maggiano’s Little Italy in Chicago’s new north area. In 1995, Brinker International purchased the concept along<br />
with Maggiano’s from LEYE in a stock deal. In 2005, Brinker International reached a deal to sell Corner Bakery to CBC<br />
Restaurant Corp., an affiliate of Il Fornaio. Terms of the sale were not disclosed. The company has plans to expand the Corner<br />
Bakery Brand into markets on the West Coast. In addition, Corner Bakery introduced a new franchise program in early 2007,<br />
as well as a revamped prototype as it seeks to add units. The company said that it had two multi-unit agreements in the works,<br />
but did not provide specifics. The Corner Bakery is also looking to expand its corporate-owned outlets in its strongest markets,<br />
including San Francisco, Chicago, Los Angeles, Dallas and Washington D.C.<br />
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192
<strong>Menu</strong> Positioning |<br />
Corner Bakery’s bakery-café menu features breakfast selections, soups, salads, specialty sandwiches, paninis, pasta dishes,<br />
bakery items and desserts. Its signature items include a variety of freshly baked breads including baguettes, crusty country<br />
rolls and specialty breads like multi-grain harvest and ryes. Its breakfast menu includes hot entrées, scrambled egg<br />
sandwiches, fruits and grains. For lunch, a popular option is the Trio Salad, which comes with a choice of three signature side<br />
salads and is garnished with field greens and a baguette wedge. These include, D.C. Chicken Salad, Tuna Salad, Egg Salad,<br />
Potato Dill Salad, Fruit Medley, Caesar Salad and Mixed Green Salad. Popular sandwiches include Chicken Pesto, Uptown<br />
Turkey and Ham on Pretzel Bread. Signature soups include Roasted Tomato Basil, Mom’s Chicken Noodle, Loaded Baked<br />
Potato, Cheddar Broccoli and Zesty Chicken Tortilla. Baked goods include an extensive variety of muffins, brownies, fruit bars,<br />
cookies and other pastries and seasonal creations. A kids’ menu is available. Catering and takeout are also offered. <strong>Menu</strong><br />
prices range from $2–$5 for bread loafs and 89¢–$6.99 for regular menu items. No alcohol is served. Checks average $8.<br />
Expansion Plans |<br />
Corner Bakery Café plans to focus on its coffee and growth through franchising. By 2011, the chain plans to have about 300<br />
units, half of them franchised. It will also change its coffee for a more robust flavor. In addition, the units have a new look,<br />
featuring stuffed chairs and free Wi-Fi, for which the rollout was completed last week. (Dallasnews.com 9/15/07)<br />
Promotion Plans |<br />
Corner Bakery is offering free coffee and mugs as part of a plan to increase morning customer traffic beginning September 17.<br />
The chain plans to give out the travel mugs in pairs, urging customers to keep one and give the other to a friend. Each mug<br />
has a coupon for a free cup of coffee. Mugs can be refilled for $1.29. (Rimag.com 9/12/07)<br />
<strong>Menu</strong> Development |<br />
Corner Bakery added to its menu Tuscan Pesto Pasta, with penne pasta, artichoke hearts, kalamata olives, grape tomatoes,<br />
spinach and Parmesan cheese with pesto-balsamic dressings; and Roasted Caesar Potato salad, with roasted red potatoes<br />
and peppers, green onions, Parmesan cheese and Caesar dressing. (Chain Leader 10/06 p28)<br />
Corner Bakery has added Old Fashioned Beef Stew and Chicken Wild Mushroom Brie Stew for a limited time. Old Fashioned<br />
Beef Stew features beef, red potatoes, carrots and pearl onions with seasonings in a beefy red wine gravy. Chicken Wild<br />
Mushroom Brie Stew is prepared with chicken, shiitake and Portobello mushrooms, pearl onions and red bell peppers in a<br />
cream sauce flavored with brie cheese and sherry. Both items are available by the cup, bowl or bread bowl and are priced<br />
from $4.29–$5.99. Guests can also order the items as part of a Stew and Salad Combo for $6.49–$6.79. (NRN Daily NewsFax<br />
2/6/07)<br />
Corner Bakery debuted Turkey Frisco to its menu. The sandwich features smoked turkey breast, marinated artichokes,<br />
roasted sweet balsamic onions, fresh spinach, provolone cheese and sundried tomato pesto mayo served on Asiago cheese<br />
bread. The item is priced at $6.29. (Company Website)<br />
Franchise Activity |<br />
Corner Bakery launched a franchise program with a deal for The Rose Group to build 25 new cafés in the Philadelphia and<br />
southern New Jersey markets over the next seven years. The 89-unit chain is looking to compete more aggressively with<br />
Panera Bread and Au Bon Pain. In addition, Corner Bakery is working on catering and menu development to attract more<br />
breakfast and dinner business. (Nation’s Restaurant News Online 6/4/07)<br />
Corner Bakery Café signed an agreement with Cutter Restaurant Group and Cornerstone Foods LLC to develop 22 units in<br />
Colorado and Utah. (Food Institute Report 10/15/07)<br />
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193
Personnel |<br />
Jim Vinz, COO/President<br />
Diana Hovey, S.V.P. of Marketing<br />
Ric Scicchitano, V.P. of Food & Beverage<br />
Mike Hislop, CEO<br />
Ted Croft, CFO<br />
Corner Bakery Café has named Ted Croft senior vice president and chief financial officer. Previously, Croft served as vice<br />
president of finance for Romano’s Macaroni Grill. In addition, Diana Hovey was hired as senior vice president of marketing and<br />
Bob Hartmann was named vice president of real estate. (NRN Daily NewsFax 11/10/06)<br />
News & Other |<br />
Corner Bakery Café introduced a new franchise program and a revamped prototype as it seeks to add units. The company<br />
said that it had two multi-unit agreements in the works but did not provide specifics. Corner Bakery is also looking to expand its<br />
corporate-owned outlets in it strongest markets, including San Francisco, Chicago, Los Angeles, Dallas and Washington, D.C.<br />
The 3,100–3,600-sq.ft. prototype features darker woods and murals and signage reflecting the location of the unit, such as<br />
local buildings and icons. There are currently 94 Corner Bakery units operating nationwide. (Dallas Business Journal 12/22/06)<br />
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194
Cosi<br />
Headquarters<br />
1751 Lake Cook Road, Deerfield, Illinois 60015 USA<br />
Tel: (847)444-3200 Fax: (847)597-8884<br />
www.getcosi.com<br />
Ownership: Public<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 138,038 121,080 110,630<br />
Company-owned ($000) 126,038 117,080 110,630<br />
Franchised ($000) 12,000 4,000 -<br />
U.S. Number of Units 123 101 93<br />
Company-owned 110 96 93<br />
Franchised 13 5 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,200 1,190 1,220<br />
Concept Positioning |<br />
Cosí is a limited-service chain of fast-casual eateries offering light meals of sandwiches on artisan bread, customizable salads,<br />
a variety of soups and desserts. The concept appeals to an upscale, urban clientele with its healthful alternatives to traditional<br />
fast food. Its breads are baked fresh throughout the day, and nothing on its menu is fried. Cosí, a public chain, attracts an<br />
adult clientele during all three dayparts. Its units are scattered throughout the U.S.<br />
With an elegant blend of cherrywood, natural wood, green stone, burnished steel and its signature brick oven centerpiece,<br />
units offer a unique quick-casual environment in which guests can relax, talk with friends, read or conduct business. Operators<br />
individualize each unit’s decor by securing original artwork from local artists to display in the restaurants. Cosi’s systemwide<br />
redesign of its units’ interior includes a more upscale look, with more seating arrangements and a new open-flame hearth logo.<br />
During the day, its limited-service menu selection is confined to coffee drinks and food, but after 4:00 p.m. or 5:00 p.m., Cosí<br />
opens its beer and wine bar and adds table service. Average store size is 2,500 sq. ft. Locations generally seat about 60<br />
guests, and serve breakfast, lunch and dinner. Units are typically located in downtown areas of major cities and as endcap<br />
sites in suburban retail areas. In addition, a partnership with Macy’s parent Federated Department Stores has led to the launch<br />
of 10 Cosi restaurants in some of Macy’s largest stores, including locations in Atlanta, Memphis, Miami and Seattle.<br />
The first Cosí Sandwich Bar was opened in New York City in 1995 after a group of friends experienced the unique sandwich at<br />
a restaurant called Cosí in Paris. Jay and Shep Wainright and Tiffany Muse then decided to bring the concept to the U.S. with<br />
the name Cosí Sandwich Bar. In 1999, Cosí merged with Xando Inc., parent of Xando Coffee and Bar, Connecticut-based<br />
coffeehouse concept. In 2002, Cosí Inc. raised $38.9 million in an initial public offering (IPO) and trades on NASDAQ as COSI.<br />
Area development deals with multi-unit franchisees will allow for the opening of 400 new units over the next five years. In<br />
addition to new franchised stores, Cosí is also focused on increasing its total number of company-owned units.<br />
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195
<strong>Menu</strong> Positioning |<br />
The menu at Cosí features breakfast items, soups, salads, sandwiches, desserts and pastries, melts, pizzas and a variety of<br />
beverages for all three dayparts. The quick-casual chain specializes in sandwiches made from "pizza Romana," thin crusty<br />
flatbread basted in olive oil that is baked continuously throughout the day and served warm from the oven. Sandwiches include<br />
Tandoori Chicken—with roasted tomatoes and Cosí vinaigrette; Buffalo Blue—buffalo chicken, blue cheese spread and<br />
romaine lettuce; Sesame Ginger Chicken, with carrots and romaine lettuce; and Wasabi Roast Beef—roast beef, wasabi<br />
mayonnaise and pickled ginger with a sesame soy glaze. Breakfast items include pastries, croissants and bagels. Breakfast<br />
offerings have been expanded to include items with a healthy positioning, with the addition of Blueberry Kefir, Peach Granola,<br />
Hearth Omelettes and Fritatta Sandwiches. The chain also offers a wide variety of coffees, espressos, iced coffees, lattes,<br />
mochas and teas. A small selection of soups, salads and a variety of baked goods rounds out the menu. The company also<br />
offers catering with party platters for all dayparts. Wine, beer, mineral water and assorted soft drinks are also available. A kids’<br />
menu features cheese pizza and grilled cheese, tuna, and turkey sandwiches. <strong>Menu</strong> prices range from $2.29–$7.59 for entrée<br />
items and $1.19–$4.29 for beverages. Checks average $8.<br />
Expansion Plans |<br />
Così will open 28 new restaurants this year. Così said it has 20 multi-unit franchisees committed to opening more than 260<br />
stores within the next four years. The company has targeted a total of 1,400–1,900 units by 2015. (GlobeSt.com 11/09/06;<br />
Chicago Sun Times 10/24/06)<br />
Così opened its first Tulsa, OK, location July 11. The restaurant is located in the Windsor Plaza shopping center. Opened by<br />
Oklahoma franchisee Jim Wilburn (founder of Winnercomm, a sports production company), the new Così location will feature a<br />
contemporary living room atmosphere. The company plans to eventually open eight–10 units in Oklahoma. (Company Release<br />
7/11/07)<br />
Promotion Plans |<br />
Cosi Inc. has introduced its new CosiCard, an electronic card that can be used as a guest reward program and a gift card. The<br />
CosiCard became available on November 20, free of charge. It also comes in a key ring version. (Company Release 11/20/06)<br />
<strong>Menu</strong> Development |<br />
Così has been testing dinner entrées at select units in Michigan and Kentucky. Among the new offerings are an Alpine<br />
Chicken, grilled with three cheeses in an Alfredo sauce and topped with bacon and bread crumbs; Chicken a la Greque, a<br />
Greek-influenced variation; and Chicken Tikka, an East Indian spiced version. The items are priced at $9.99 and come with a<br />
bistro salad and flat bread. The chain is expecting to add these items to menus systemwide sometime this year. (Nation’s<br />
Restaurant News 11/20/06 p75)<br />
Franchise Activity |<br />
Così Inc. plans to open 14 company-owned units and 45–55 franchised outlets this year. (Chron.com 3/19/07)<br />
Cosi Inc. president and CEO James Hyatt has pledged more coporate support to franchisees, who operate nearly one-fourth<br />
of the chain’s 144 stores. As part of the new focus for Cosi, projected development for this year has been lowered to 30 new<br />
units from between 40 to 45 stores. This will allow for more support to existing franchisees, Hyatt told Nation’s Restaurant<br />
News. Franchisee support will include developing more breakfast and dinner business, improving the guest experience with<br />
speedier service, and developing more catering sales opportunities, says Hyatt. (Nation’s Restaurant News 10/29/07)<br />
Personnel |<br />
James Hyatt, CEO<br />
William Koziel, CFO<br />
Christopher Ames, COO<br />
Christopher Carroll, V.P. of Marketing<br />
Edward Backus, V.P. of Development<br />
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196
Cosi Inc. appointed Edward Backus as chief development officer and Christopher Ames as chief operating officer. Previously,<br />
Backus served as senior vice president of business development for PepsiCo and Ames served as executive vice president for<br />
The Patina Group. (Company Release 11/13/06)<br />
Cosi, Inc. chief executive officer and president, Kevin Armstrong, has resigned, effective immediately. The company has<br />
appointed Robert Merritt as interim CEO and president. (Company Release 3/12/07)<br />
Cosí Inc. hired James Hyatt as president and chief executive officer, replacing Robert Merritt. Previously, Hyatt served as<br />
executive vice president and global chief operations officer for Burger King Corp. (Fesmag.com 10/3/07)<br />
News & Other |<br />
Cosi Inc. reported for the fourth quarter revenues grew 11.3% to $31.7 million from $28.5 million for the same period last year.<br />
Same-store sales increased 0.4%. (Company Release 1/10/07)<br />
Così is revamping units and plans to add several new locations over the next few years. Changes include eliminating the liquor<br />
bar section of the restaurant. Instead, guests will be able to order wine or beer at the time that they place the rest of their<br />
order. Other design updates include wood floors, wood furniture and couches. In addition, the chain is looking to increase its<br />
company-owned units by 50% over the current 110 it already has. Così anticipates having more than 300 company and<br />
franchised outlets by the end of 2008. (Chicago Tribune 12/23/06 Section 2 p1)<br />
Così Inc. reported a net loss of $12.3 million for the year ended January 1, versus a net loss of $13.1 million for 2005.<br />
Revenues increased 8.3% to $126.9 million from $117.2 million. Same-store sales grew 0.3%. (Company Release 3/19/07)<br />
Cosi Inc. reported for the first quarter ended April 2 a net loss of $4.2 billion compared to a loss of $3.9 billion for the same<br />
period last year. Revenues increased 8.3% to $32.1 billion from $29.6 billion. Same-store sales declined 2.4%. (Company<br />
Release 5/10/07)<br />
Così Inc. reported preliminary results for the second quarter ended July 2. Revenues grew 12.4% to $36.5 million from $32.5<br />
million for the same quarter the year before. Same-store sales rose 0.1%. The company opened two franchised locations<br />
during the quarter and opened one franchised unit after the close of the quarter. (Company Release 7/19/07)<br />
Cosí Inc. reported for the third quarter ended October 1 net earnings increased 6.9% to $35 million from $32.8 million for the<br />
same period last year. Revenues grew 8.1% to $35.6 million from $33 million. Same-store sales rose 1.6%. (Company<br />
Release 10/16/07)<br />
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197
Country Kitchen<br />
Headquarters<br />
801 Deming Way, Madison, Wisconsin 53717 USA<br />
Tel: (608)833-9633 Fax: (608)826-9080<br />
www.countrykitchenrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 129,000 154,000 171,350<br />
Company-owned ($000) 26,500 29,000 31,350<br />
Franchised ($000) 102,500 125,000 140,000<br />
U.S. Number of Units 125 155 177<br />
Company-owned 27 30 32<br />
Franchised 98 125 145<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 920 925 950<br />
Concept Positioning |<br />
Country Kitchen restaurants are full-service family-dining operations that have broad appeal. The privately held chain operates<br />
125 units across the U.S., 98 of which are franchised. Country Kitchen currently operates in 25 states, primarily in the<br />
Midwest. The chain has also started expanding into metropolitan markets.<br />
The typical prototype restaurant is 5,200 sq. ft. with seating for 170. Interior schemes are used to tailor units to local market<br />
preferences. The chain has remodeled locations using prototypes where both new and remodeled units feature a<br />
contemporary, country-style look.<br />
The first Country Kitchen restaurant opened in Cincinnati in 1939. By 1977, when the chain was acquired by Carlson<br />
Companies, Inc., it had units in the U.S., Canada and Puerto Rico. In 1993, its first 10, 000-sq.-ft. travel-center prototype<br />
opened. In 1997, Carlson sold the chain to its largest franchisee, Kitchen Investment Group, Inc. In 2003, Country Kitchen<br />
began a co-branding program with Breadeaux Pizza and The Cookie Factory. In 2005, Country Kitchen announced its intent to<br />
debut a new casual dining concept, Peppermill Grill, which debuted in Madison, WI, in 2006.<br />
<strong>Menu</strong> Positioning |<br />
Country Kitchen features a full menu of American favorites for breakfast, lunch and dinner—almost 100 choices in total. The<br />
selection includes breakfast items, appetizers, soups, salads, sandwiches, burgers along with chicken, seafood, beef and<br />
specialty entrées and desserts. New items are also added on regular basis. Signature breakfast items include pancakes,<br />
French toast, cinnamon rolls, steak and eggs, omelets and skillets. Lunch and dinner favorites include the Reuben Sandwich,<br />
Patty Melt, A.1. Mushroom Swiss Burger, Roast Beef Stacker, Salmon Chipotle Salad, Alaska Cod Sandwich and Crispy<br />
Oriental Chicken Salad. Liquor, wine and beer are available in a few locations. <strong>Menu</strong> prices range from $2.99–$11.99. Checks<br />
average $7.25.<br />
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198
Personnel |<br />
Chris McGrath, Marketing Director<br />
Donette Beattie, V.P. of <strong>Menu</strong> Development<br />
Charles Meyers, CEO<br />
Cliff Konkel, CFO<br />
Donette Beattie, V.P. of Purchasing<br />
Dennis LaVenture, V.P. of Operations<br />
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199
Country Market Restaurant & Buffet, The<br />
Headquarters<br />
1104 Country Hills Drive, Ogden, Utah 84403 USA<br />
Tel: (801)624-1000 Fax: (801)624-1161<br />
www.flyingj.com/restaurant<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 291,064 278,075 261,375<br />
Company-owned ($000) 280,382 268,275 251,875<br />
Franchised ($000) 10,682 9,800 9,500<br />
U.S. Number of Units 159 152 143<br />
Company-owned 152 146 137<br />
Franchised 7 6 6<br />
International Sales ($000) 9,170 6,557 5,463<br />
International Units 6 4 3<br />
Average Sales/Unit ($000) 1,830 1,829 1,827<br />
Concept Positioning |<br />
Country Market Restaurant & Buffet, one of several restaurant concepts operated by Flying J Inc., is a chain of full-service and<br />
buffet restaurants catering to truckers and travelers. The company operates 165 units in the U.S. and Canada, 11 are located<br />
in Canada and the rest in the U.S. All units except seven are company-owned.<br />
Located along national highways in Flying J Travel Plazas in the U.S. and Canada, Country Market Restaurant & Buffet<br />
features a contemporary country décor. In addition to menu service, a full buffet is open from 6 a.m. to 10 p.m. daily. Units<br />
typically average 3,500 to 4,000 sq. ft. and are designed to seat 70–100 guests.<br />
Flying J Inc. was founded in 1968 by Jay Call. The company owns several restaurant concepts located in its travel centers<br />
alongside gas stations, including Thad's Restaurant, Cookery Restaurant & Buffet, and Magic Dragon Chinese Eatery. The<br />
company no longer franchises its restaurants.<br />
<strong>Menu</strong> Positioning |<br />
Country Market is open for breakfast, lunch and dinner. Its menu features appetizers, soups, salads, pasta, stir-fries, steaks,<br />
seafood, chicken, sandwiches, burgers, breakfast specialties, desserts and beverages. Newer items include Batter-Dipped Pot<br />
Stickers, the 8-oz Rancher's Flat Iron Steak and other family-friendly entrées. Popular menu items include Bacon & Tomato<br />
Double Chopped Steak— two grilled chopped steaks with bacon, tomato, mozzarella and Parmesan cheese, served with stirfried<br />
vegetables; Stir Fry & Egg Roll—choice of shrimp, chicken or vegetable, stir-fried with zucchini, mushrooms, red onion,<br />
broccoli, water chestnuts, bell peppers and sesame-garlic sauce, served over rice pilaf with an egg roll; Junkyard Dog—½-lb<br />
grilled hot dog on a toasted roll with beef and bean chili, Cheddar-Jack cheese and red onion with a side of coleslaw or baked<br />
beans; and the Chocolate Mud Slide. In addition to a la carte menu items, restaurants feature a full buffet. Breakfast, lunch<br />
and dinner entrées are served 24 hours a day. Kids menu is available. <strong>Menu</strong> prices range from $5.69 - $10.99. Checks<br />
average $10.<br />
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200
Personnel |<br />
Rick Marscal, V.P. of <strong>Menu</strong> Development<br />
Philip Adams, CEO<br />
Scott Clayson, CFO<br />
York Copper, V.P. of Purchasing<br />
James Baker, V.P. of Operations<br />
Virginia Paker, V.P. of Marketing<br />
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201
Country Pride<br />
Headquarters<br />
24601 Center Ridge Road Suite 200, Westlake, Ohio 44145 USA<br />
Tel: (440)808-9100 Fax: (440)808-4310<br />
www.tatravelcenters.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 163,500 162,434 123,000<br />
Company-owned ($000) 138,000 137,046 118,000<br />
Franchised ($000) 25,500 25,388 5,000<br />
U.S. Number of Units 150 150 123<br />
Company-owned 128 128 118<br />
Franchised 22 22 5<br />
International Sales ($000) 1,500 1,500 1,500<br />
International Units 1 1 1<br />
Average Sales/Unit ($000) 1,080 1,071 1,100<br />
Concept Positioning |<br />
Country Pride Restaurant is a full-service chain that caters to travelers and specializes in homestyle meals, such as ovenroasted<br />
turkey and chicken-fried steak. Especially popular for its bountiful breakfast selection, the chain serves breakfast all<br />
day. The privately held chain operates 151 units across the U.S. and in Canada, 22 of which are franchised.<br />
Country Pride Restaurants are located within TravelCenters of America plazas along national highways, particularly in the<br />
Midwestern U.S. Décor is casual with a country feel. Booth and table seating is available for 150 guests in a 3, 000 sq. ft.<br />
space.<br />
TravelCenters of America was founded in 1972 by Phil Saunders. Since then, the company has grown into the nation's leading<br />
travel center chain, with locations nationwide.<br />
<strong>Menu</strong> Positioning |<br />
Country Pride is open for breakfast, lunch and dinner, featuring breakfast fare, appetizers, soups and salads, homestyle<br />
meals, classic dinners, steaks, burgers, sandwiches, desserts and beverages. Featured menu items include the French Fry<br />
Melt—seasoned french fries topped with bacon, Cheddar and Monterey Jack cheese; Chopped Steak—8 oz. of seasoned<br />
chopped beef smothered with sautéed onions and served with mashed potatoes and vegetables; Jambalaya—Cajun rice with<br />
special seasoning and spices, vegetables and smoked sausage, served with cornbread; Ultimate Shrimp & Pasta— noodles<br />
and shrimp tossed in a tomato basil cream sauce, served with garlic bread; and Big Bob’s Belly Buster Fish—8-oz. beerbattered<br />
Alaskan whitefish filet served with lemon, tomato and tartar sauce. Dinner options include an all-you-can-eat soup<br />
and salad bar. A wide variety of sides and desserts rounds out the menu. Kids’ menu is also available. <strong>Menu</strong> prices range from<br />
$1.79–$15.99. Checks average $12.27.<br />
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202
Personnel |<br />
Peter P. Greene, V.P. of Product Development<br />
Thomas M. O'Brien, CEO<br />
John R. Hoadley, CFO<br />
Larry W. Dockray, V.P. of Operations<br />
Joseph A. Szima, V.P. of Marketing<br />
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203
Cracker Barrel Old Country Store<br />
Headquarters<br />
305 Hartmann Dr., Lebanon, Tennessee 37087 USA<br />
Tel: (615)444-5533 Fax: (615)443-9818<br />
www.crackerbarrel.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,750,000 1,695,000 1,630,639<br />
Company-owned ($000) 1,750,000 1,695,000 1,630,639<br />
Franchised ($000) - - -<br />
U.S. Number of Units 552 540 514<br />
Company-owned 552 540 514<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,248 3,215 3,261<br />
Concept Positioning |<br />
Cracker Barrel Old Country Store is a moderately-priced, full-service restaurant concept featuring country-style cooking for<br />
breakfast, lunch and dinner. Its units combine a retail store and a casual-dining restaurant. <strong>Menu</strong>s are regionalized to take<br />
advantage of food indigenous to each area. It also retails its pancake mix, smoked bacon and sausage, coffee, fried apples<br />
and maple syrup in its gift shops and through its own catalog. Its gift shops are open seven days a week from 6 a.m.–10 p.m.<br />
Sunday–Thursday and 6 a.m.–11 p.m. on Friday and Saturday. The concept's retail areas account for approximately 20% of<br />
Cracker Barrel's total revenues. Cracker Barrel is owned and operated by CBRL Group Inc.<br />
All units are freestanding and located near or adjacent to interstate highway interchanges, with much of the system located in<br />
its core markets. Cracker Barrel units are often situated in tourist destination areas. Stores average 9,000 sq. ft. with a twosection<br />
dining room, seating approximately 200. Units feature a rustic board-and-batten exterior design, wooden floors,<br />
fireplaces, and kitschy, early American decor. In addition, units sell a wide variety of nostalgic merchandise, housewares,<br />
candles, collectibles and toys, which are displayed in a separate retail area. CDs featuring a range of music, from polka to<br />
bluegrass are also sold. The program is part of the chain's partnership with the Grand Ole Opry.<br />
Most food and restaurant supply purchases are centralized with custom distribution centers in Lebanon, TN; Dallas; Belkamp,<br />
MD; and Gainesville, FL. Certain perishable foods are purchased locally by individual units. Food is prepared on the premises<br />
from natural ingredients such as real butter, pure maple syrup, molasses and honey.<br />
Cracker Barrel was developed by Dan Evins, who marketed gasoline on the interstate near Lebanon, TN. Cracker Barrel Old<br />
Country Store acquired the concept and was incorporated in 1969. The firm's initial public stock offering was made in 1981. In<br />
1998, the company completed an acquisition of Carmine’s Prime Meats Inc., an operator of two Gourmet Markets and an<br />
upscale trattoria, but Carmine’s is no longer a part of the CBRL Group. In early 1999, the company completed its acquisition of<br />
Logan’s Roadhouse, Inc., a casual-dining chain based in Nashville. Cracker Barrel Old Country Store and Logan’s Roadhouse<br />
are both owned by CBRL Group, Inc. In 2006, CBRL filed a public stock offering of its Logan's Roadhouse division. Also in<br />
2006, CBRL announced and completed a $486 million acquisition of Logan's Roadhouse by LRI Holdings, an affiliate of<br />
Bruckmann, Rosser, Sherrill & Co., Inc.<br />
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204
<strong>Menu</strong> Positioning |<br />
Cracker Barrel's homestyle American menu offers breakfast, lunch and dinner featuring traditional breakfast selections, steaks,<br />
ribs, chicken, fish, beef, hamburgers and sandwiches, vegetable plates, numerous sides, soups, desserts and beverages.<br />
Signature items include combination platters such as Meatloaf Dinner, Roast Turkey, Chicken N’ Dumplings, Country Fried<br />
Shrimp Platter and Beef Stew with Cornbread. Other entrées include Fish Fry, BLT Salad, Fried Chicken Tenderloin Salad,<br />
Chicken Fiesta Salad, Open-Faced Roast Beef and Half Pound Bacon Cheeseburger. Side items include macaroni & cheese,<br />
applesauce and onion rings, as well as vegetables, including corn, pinto beans, green beans, collard greens and potatoes in<br />
various preparations. Entrées are served with cornbread muffins and biscuits. The breakfast menu (available all day) offers<br />
eggs, pancakes, bacon, country ham, grits and made-from-scratch biscuits. Breakfast options typically combine eggs with<br />
pancakes, met and sides, and include the Sunrise Sampler, Uncle Herschel’s Favorite, Gravy N’ Biscuits, Momma’s French<br />
Toast Breakfast, Wild Maine Blueberry Pancakes and Hash Browns with Fried Apples & Biscuit. Desserts include sundaes,<br />
pies, fruit cobblers and Chocolate Cobbler with Pecans & Ice Cream. A kids’ menu is available, featuring burgers, macaroni &<br />
cheese and kid-sized sundaes. Beverages include sweetened and unsweetened iced tea, coffee, hot tea, hot chocolate, milk,<br />
soft drinks, milkshakes, lemonades and juice. <strong>Menu</strong> prices range from $1.89–$8.49 for breakfast items and $2.59–$12.99 for<br />
lunch and dinner items. Checks average $6.75.<br />
Promotion Plans |<br />
Cracker Barrel Old Country Store is rolling out a new marketing initiative featuring its first TV campaign in over 10 years, a<br />
return to radio advertising, and billboards. The company wants to attract local customers and also be seen as a dining<br />
destination for travelers. The chain is developing 30- and 60- second TV spots to air later this year. The radio campaign will air<br />
in 38 markets over the next six months. Several of the billboards feature photos of foods such as pancakes, biscuits, wholekernel<br />
corn, sweet baby carrots and green beans along with the tagline “Comin’ right up.” Cracker Barrel is also trying to<br />
position itself as a retail outlet by advertising its exclusive country-music CDs on select billboards. The chain plans to have the<br />
billboards in place by March. (Nation’s Restaurant News 12/18/06 p16)<br />
Cracker Barrel Old Country Store is airing TV commercials for the first time in nine years. The TV campaign, titled “The Front<br />
Porch,” promotes Cracker Barrel’s 565-unit chain as a place where diners and neighbors can reconnect. Commercials are<br />
playing in six markets: Greensville/Spartanburg, SC; Lexington, KY; Louisville, KY; Jacksonville/Brunswick, FL; Nashville, TN;<br />
and Indianapolis. Since its last TV advertising campaign in 1998, Cracker Barrel has relied on nearly 1,500 highway billboards<br />
to attract local customers and travelers. (Nation’s Restaurant News Online 10/22/07)<br />
<strong>Menu</strong> Development |<br />
Cracker Barrel plans to eliminate artificial trans fat from all menu items by mid-2008. The family-dining chain has been<br />
experimenting with recipes since late last year in preparation for the change. Cracker Barrel is a wholly owned subsidiary of<br />
CBRL Group Inc. and has 558 units in 41 states. (Nation’s Restaurant News 6/4/07 p3)<br />
Cracker Barrel is planning to roll out new menus in all of its restaurants in April. New items, including turkey and dressing,<br />
baked chicken and sausage chili, are currently testing in 30 stores. The move comes on the heels of a weak fiscal first quarter,<br />
reported by parent company CBRL Group November 28. Cracker Barrel says the new menu launch is part of an attempt to<br />
provide quicker service and win customer loyalty. (Tennessean.com 11/29/07)<br />
Personnel |<br />
Nelson Griffin, V.P. of Product Development<br />
Michael Woodhouse, CEO<br />
Lawrence White, CFO<br />
Nelson Griffin, V.P. of Purchasing<br />
Terry Maxwell, V.P. of Operations<br />
Simon Turner, V.P. of Marketing<br />
News & Other |<br />
Cracker Barrel Old Country Store reported October same-store sales rose 1.9%. (NRN Daily NewsFax 11/1/06)<br />
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205
CBRL Group Inc. launched a tender offer to acquire up to 5.4 million shares for $42–$46 each in a modified Dutch auction.<br />
This represents about 17.3% of the company’s outstanding stock. CBRL has 552 Cracker Barrel Old Country Stores<br />
restaurants and gift shops in 41 states. (AFX International Focus 12/13/06)<br />
Cracker Barrel Old Country Stores Inc. is suing two insurance carriers for allegedly refusing to reimburse the restaurant $2<br />
million for settling a sexual harassment and racial discrimination suit. (NRN Daily NewsFax 3/26/07)<br />
CBRL Group Inc. reported April same-store sales for its Cracker Barrel Old Country Store rose 1.8%, with menu prices<br />
increasing 1.5%. However, retail sales fell 2.9% and results of the annual Porch Sale clearance were disappointing. (Company<br />
Release 5/1/07)<br />
Cracker Barrel pulled burgers off its menu at several locations after a woman in South Carolina reported cutting her mouth on<br />
a metal object in her burger. Some 313 locations were told to not serve burgers made on and around the same time as those<br />
served in the Myrtle Beach restaurant where the incident happened on May 5. The burgers are frozen and pre-formed, coming<br />
from the chain’s largest burger supplier, Cargill Meat Solutions. The Myrtle Beach restaurant manager looked at the half-eaten<br />
burger from the woman’s table and noticed a piece of razor blade inside the burger. Another piece of the blade was barely<br />
visible inside the meat. (USAtoday.com 5/9/07)<br />
CBRL Group Inc. reported May same-store sales fell 0.4% at its Cracker Barrel Old Country Stores. There was a higher check<br />
average of 2% due to an average menu price increase of 2%. Store retail sales increased 3.7%. (Company Release 5/20/07)<br />
Cracker Barrel Old Country Stores is being sued for alleged age discrimination. The suit claims that the chain illegally required<br />
applicants to state their age on applications and other pre-employment materials. Cracker Barrel denied the allegations. (NRN<br />
Daily NewsFax 6/11/07)<br />
Starbucks and Cracker Barrel Old Country Store and Restaurant are the only two out of 50 chain restaurants studied that fully<br />
satisfied customer’s need for food quality, speed, cleanliness, friendliness and hospitality. More than 3,000 people were asked<br />
by Kanbay Research Institute to rate chains based on these factors. Though fast-food, casual-dining and upscale restaurants<br />
all experienced declines in consumer satisfaction since the 2005 survey, fast-food chains dipped the least in 2006. (Chicago<br />
Tribune Online 5/19/07)<br />
Cracker Barrel Old Country Store reported August same-store sales increased 3.1% compared to the same period last year.<br />
The increase included a 2% higher guest check based on a rise of 2.7% in menu prices. (Bizjournals.com 9/10/07)<br />
Cracker Barrel Old Country Store agreed to pay $270,000 for five former employees to settle a sexual-harassment lawsuit filed<br />
against the company last year. The women claimed that a manager at the company’s Las Cruces, NM, location sexually<br />
harassed them, and that at least two of the women were retaliated against for opposing the manager’s behavior. Cracker<br />
Barrel says that it was an isolated incident and that it no longer employs that manager. (Nation’s Restaurant News 9/10/07)<br />
CBRL Group Inc., holding company for Cracker Barrel, reported first-quarter earnings fell 29% compared to the same period<br />
last year. CBRL attributed the decline to higher labor costs due to minimum wage increases in some states and higher group<br />
health expenses. Net income for the quarter ended November 2 dropped to $13.9 million from $19.4 million the year before.<br />
Same-store sales increased 1.8% over the year before. (Yahoo! Finance 11/28/07)<br />
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206
Culver's Frozen Custard<br />
Headquarters<br />
540 Water St., Prairie du Sac, Wisconsin 53578 USA<br />
Tel: (608)643-7980 Fax: (608)643-7982<br />
www.culvers.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 531,863 480,873 423,078<br />
Company-owned ($000) 9,702 8,891 8,617<br />
Franchised ($000) 522,161 471,982 414,461<br />
U.S. Number of Units 351 312 272<br />
Company-owned 6 5 5<br />
Franchised 345 307 267<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,611 1,644 1,639<br />
Concept Positioning |<br />
Culver’s Frozen Custard and ButterBurgers set itself apart from other limited-service concepts with a small town, friendly-folk<br />
philosophy and nostalgic feel. Culver’s has carved a niche somewhere between quick-service and casual-dining by providing<br />
family oriented service via takeout, drive-thru or dine in. Food is cooked to order, ensuring that everything is served hot and is<br />
of the highest quality. Wisconsin-based Culver’s currently operates more than 350 restaurants across the U.S.<br />
Units are an acre-and-a-half in size with seating for typically 98–128 guests. They are freestanding and are decorated in the<br />
company’s blue-and-white color scheme. Despite the reference to frozen custard in its name, Culver’s signature ButterBurger<br />
has become an important element in its success. Made from fresh ground chuck seared on the grill and light butter toasted on<br />
the crown of the bun, Culver’s uses a full-service versus limited-service preparation approach as each burger is cooked-toorder.<br />
Frozen custard or “premium ice cream” is made on the premise several times each day, making it another signature<br />
item on Culver’s menu. Vanilla and chocolate flavors are available everyday as well as a “flavor of the day” chosen from some<br />
141 different options.<br />
With three decades of restaurant experience, George Culver and son Craig created the Culver’s concept and opened the first<br />
restaurant in Sauk City, WI, in 1984. Franchising began in 1987, but the chains’ current expansion thrust began in 1995 when<br />
the company broke our out of its home state and opened in Minnesota and Illinois. Today, five restaurants in the system are<br />
owned by the Culvers and serve as training restaurants. The remaining restaurants are owner/operator franchised restaurants.<br />
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<strong>Menu</strong> Positioning |<br />
Culver's menu features an array of frozen custard and ButterBurgers served as singles, doubles or triples with a choice of<br />
condiments. Garden Fresh salads, value baskets, dinners, Chicken to Go, sides, desserts and beverages are also menued. In<br />
addition to ButterBurgers, other menu favorites include Norwegian Cod Filet, Pork Tenderloins, Philly Ribeye Steaks, Hot<br />
Dogs, Hot ‘n’ Spicy and Crispy Chicken as well as sides such as mashed potatoes and gravy, coleslaw and french fries.<br />
Chicken, Norwegian Code and Shrimp dinners come with a choice of french fries, mashed potatoes or coleslaw and a dinner<br />
roll. The popular dessert item is Culver’s Frozen Custard, served in cones, dishes, shakes or malts. Kids’ meals offer a choice<br />
of ButterBurger, corn dog/hot dog, grilled cheese sandwich or chicken tenders plus milk or a small drink, fries and a scoop of<br />
custard. Kids can also collect “tokens” for items such as hats, t-shirts, lunch boxes, etc. <strong>Menu</strong> prices range from $2.09–$15.89<br />
for entrées. Checks average $9.41.<br />
Expansion Plans |<br />
Culver’s will open its newest restaurant in the Green Bay, WI, area on the far east side on August 21. The unit will feature<br />
seating for 147 people, a drive-thru and a separate dining room with audio/visual capabilities for private meetings.<br />
(Thenorthwestern.com 8/8/07)<br />
Promotion Plans |<br />
Culver’s has awarded media duties for its 368-unit Culver’s chain to MARC USA. Culver’s previous agency of record was<br />
Jacobson Rost. A new integrated-media campaign is slated to launch in early spring 2008 in 55 markets. (NRN.com 11/14/07)<br />
<strong>Menu</strong> Development |<br />
Culver’s will make a full transition to zero grams trans-fat cooking oil by March 1. The company will use a 100% canola oil.<br />
(Qsrmagazine.com 12/6/06)<br />
Culver’s Frozen Custard introduced two new flavors to its Concrete Cake line, Andes Avalanche and Cookie Dough Craving.<br />
(Company Website)<br />
Culver’s added a Cobb Salad to its menu. It includes grilled chicken breast, bacon, croutons, Julienne ham, avocado, blue<br />
cheese, cucumber and tomato slices over mixed greens, topped with a choice of salad dressing. (Company Release 4/17/07)<br />
Personnel |<br />
Craig Culver, CEO<br />
Joseph Koss, CFO<br />
Art Cone, V.P. of Purchasing<br />
Jeff Bonner, V.P. of Operations<br />
Chris Contino, V.P. of Marketing<br />
Jim Doak, Director of R&D<br />
News & Other |<br />
Culver’s is donating 10% of sales on September 12 to the American Red Cross as part of National Preparedness Month.<br />
Guests at each Culver’s location will also be able to make donations. National Preparedness Month urges Americans to take<br />
steps to prepare for local emergencies. (Journalgazette.net 9/5/07)<br />
Blue Spoon Café, an upscale casual restaurant developed by Culver’s, recently premiered a prototype for the emerging chain<br />
in Wisconsin. The restaurant’s name originates from the blue plastic dinnerware used at Culver’s, but the two operating Blue<br />
Spoon units bear no resemblance to the Culver’s chain. Décor at Blue Spoon is contemporary, using warm wood tones<br />
accented with soft blues and ceramic tile. The menu includes smallplate offerings, entrées, desserts, specialty coffees and<br />
cocktails. Culver’s is still deciding whether to expand Blue Spoon Café with corporate-owned stores or franchises. (Milwaukee<br />
Journal Sentinel Online 11/5/07)<br />
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208
D'Angelo Grilled Sandwiches<br />
Headquarters<br />
600 Providence Highway, Dedham, Massachusetts 02026 USA<br />
Tel: (781)461-1200 Fax: (781)461-1896<br />
www.dangelos.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 111,342 112,546 110,863<br />
Company-owned ($000) 80,617 81,078 80,747<br />
Franchised ($000) 30,725 31,468 30,116<br />
U.S. Number of Units 192 197 199<br />
Company-owned 138 139 143<br />
Franchised 54 58 56<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 584 571 564<br />
Concept Positioning |<br />
D’Angelo Grilled Sandwiches is a chain of limited-service Italian restaurants. Specializing in made-to-order sandwiches or cold<br />
cut sandwiches using fresh, high-quality ingredients, units are open for lunch, dinner and snacks.<br />
Units can range in size from 1,750–2,200 sq. ft. with seating for 25-35. Whether freestanding or in strip shopping centers<br />
located in major urban and suburban areas, standard décor features a green russet and cream color scheme. Individual and<br />
booth seating is available. Nontraditional program sites include Boston University, University of New Hampshire, Northeastern<br />
University and Fenway Park.<br />
Partners Brain and James McLaughlin and Jay Howland launched the chain, originally known as D’Angelo Sandwich Shops, in<br />
1967. In late 1993, the chain was acquired by PepsiCo. Its spin-off by PepsiCo was announced in late 1996 and the eventual<br />
sale to Papa Gino’s Inc. was completed in 1997. Papa Gino’s is owned by BancBoston Capital, a subsidiary of Bank Of<br />
America. In 2005, Papa Fino’s Holdings Corp. was acquired by Bunker Hill Capital LP, a Boston-based private equity firm. In<br />
2005, the company changed its name to D’Angelo Grilled Sandwiches.<br />
<strong>Menu</strong> Positioning |<br />
D'Angelo's menu features salads, soups, wraps, hot and cold subs, Pokkets, D-Lites, beverages and desserts. Its signature<br />
items are the over 40 made-to-order sandwiches, available in small, medium and large sizes. Bread choices include white sub,<br />
white Pokket, plain wrap, honey wheat sub, honey wheat pocket and sundried tomato wrap. Popular menu items include the<br />
Chicken Stir Fry Sub—grilled chicken breast, mushrooms, peppers, onions, cheese and choice of sauce; Honey Dijon Chicken<br />
Filet Sub—chicken breast, ham, Swiss cheese, honey Dijon mustard, lettuce and tomato; and the Steak & Cheese Sub. The<br />
menu also features nine D’Lite subs that each have seven grams of fat or less. A wide variety of soups, salads and combo<br />
meals are also menued. A kids menu is available. No alcohol is served. <strong>Menu</strong> prices range from $1.99–$8.19. Checks average<br />
$4.35.<br />
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209
Expansion Plans |<br />
D’Angelo Grilled Sandwiches plans to open 120 outlets within the next five years, including 20 slated for central Florida. In<br />
addition, the chain wants to continue its growth in the New England market as well as New York, North Carolina and Virginia.<br />
All of the new outlets will have the company’s updated design, which it rolled out in 2005. The design features wood, tile floors<br />
and warmer colors as well as a larger dining area with booths and seats and a brick wall with a hand-painted logo. There are<br />
183 D’Angelo restaurants in operation. (BostonHerald.com 4/04/07)<br />
<strong>Menu</strong> Development |<br />
D’Angelo Grilled Sandwiches introduced its first Surf and Turf combo, combining its Lobster Roll and a four-inch grilled Steak<br />
and Cheese sandwich. The combo is part of D’Angelo’s “Summer Craving” campaign. In addition to the Surf and Turf combo,<br />
the restaurant is offering a Baked Stuffed Lobster Sandwich and a Traditional Lobster Sandwich. The Lobster Sandwich line<br />
will be available now through the fall or while supplies last. (Finance Visor 7/1/07)<br />
Personnel |<br />
Tom Glagan, CEO<br />
Luie Psallidas, CFO<br />
Bruce Archambault, V.P. of Purchasing<br />
Rick Wolf, V.P. of Operations<br />
Tino Menmitto, V.P. of Research & Development<br />
Mike McManma, V.P. of Marketing<br />
Mike McManma, S.V.P. of Brand Development<br />
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210
Dairy Queen<br />
Headquarters<br />
7505 Metro Blvd., Minneapolis, Minnesota 55439 USA<br />
Tel: (952)830-0200 Fax: (952)830-0273<br />
www.dairyqueen.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,500,000 2,500,000 2,446,425<br />
Company-owned ($000) 81,000 75,000 75,175<br />
Franchised ($000) 2,419,000 2,425,000 2,371,250<br />
U.S. Number of Units 4,728 4,752 4,779<br />
Company-owned 70 69 65<br />
Franchised 4,658 4,683 4,714<br />
International Sales ($000) 400,000 400,000 385,000<br />
International Units 964 925 916<br />
Average Sales/Unit ($000) 510 510 500<br />
Concept Positioning |<br />
International Dairy Queen, Inc. (IDQ) develops, licenses, franchises and services a system of stores under Dairy Queen, DQ,<br />
Brazier, DQ Grill & Chill and DQ/Orange Julius trademarks. There are more than 5,600 Dairy Queen units in the U.S and<br />
Canada, as well as 16 international countries. The concept is known for its soft-serve treats, including Blizzard Flavor Treats,<br />
sundaes and cones. Approximately 60% of all DQ restaurants offer a full food menu as well, including items such as<br />
hamburgers, hot dogs and chicken strips.<br />
Dairy Queen stores are freestanding or in malls. Units vary in size, seating, capacity, parking and drive-thru capability, but<br />
currently average 2,400 sq. ft. for a DQ/Brazier restaurant and 2,600 sq. ft. for a DQ Grill & Chill location.<br />
IDQ launched the DQ Grill & Chill concept in 2001 as a restaurant designed for metropolitan areas, offering more hot food<br />
options and a slightly more upscale dining area. The company is also testing DQ/Orange Julius co-branded units, which teams<br />
the DQ menu with Orange Julius’ fruit blended beverages. The first unit was launched in Chardon, OH, in summer 2006.<br />
International growth is an important corporate focus, with Asia, particularly China and Thailand, being emphasized as the most<br />
prominent growth location.<br />
The first Dairy Queen store opened in Joliet, IL, in 1940. By 1945, territorial franchising had begun and in 1948, the Dairy<br />
Queen National Trade Association was formed. In 1953, the first DQ stores started opening in Canada. The Brazier food menu<br />
made its debut in 1957. In 1962, IDQ was founded. Subsidiaries of IDQ include American Dairy Queen Corporation, Orange<br />
Julius of America, Karmelkorn Shoppes, Inc., DQ Canada, Inc., Dairy Queen Corporate Stores, Inc. and Unified Supply Chain,<br />
Inc.<br />
<strong>Menu</strong> Positioning |<br />
The Dairy Queen system offers a variety of hot food favorites as well as frozen treats. Food items include grill burgers, chicken<br />
sandwiches, hot dogs, salads and french fries. Soft-serve treats include Blizzard Flavor Treats; the MooLatte frozen blended<br />
coffee line in flavors including Mint Mocha Mocha, Caramel and Hazelnut; cones and dip cones; sundaes; and several Royal<br />
Treats, such as Banana Splits and the Peanut Buster Parfait. Packaged treats—DQ Frozen Cakes and Blizzard Cakes—are<br />
also available at select locations. <strong>Menu</strong> prices range from $1.29–$7.88 for hot food items and $0.93–$4.81 for treats. Guest<br />
checks average $5.95.<br />
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211
Expansion Plans |<br />
Dairy Queen opened a new DQ Grill and Chill in Anchorage, AK, on June 15. The unit is the first in the town and attracted<br />
several lines on Tudor Road, the road on which where it is located. (Ktuu.com 6/15/07)<br />
Dairy Queen has a new location in Solon, OH, which opened on July 2. The only Dairy Queen in the area, the location offers<br />
hot food items as well as frozen treats. The unit is the first fast-food restaurant to open in the town in 20 years. (Presscitizen.com<br />
7/7/07)<br />
Promotion Plans |<br />
Dairy Queen’s FlameThrower Grill Burger ad is receiving great reviews on YouTube.com. The ad features three people eating<br />
the FlameThrower burger, but whenever they talk, flames shoot out of their mouths. The burger the ad is promoting features<br />
two slices of jalapeño bacon, pepper Jack cheese, lettuce, tomato and DQ’s “serious” FlameThrower sauce. (Foodfacts.info<br />
3/14/07)<br />
Dairy Queen’s new waffle bowl product is looking like it will be the most successful product launch for the chain since the<br />
Blizzard, which made its debut in 1985. The product is being advertised with television spots such as “Made for Each Other,”<br />
an advertisement from Grey Worldwide. Also, a “Freeze/Click/Win” promotion encourages visitors to submit photos of<br />
themselves with Dairy Queen treats. The top 10 photos are posted on the promotion’s website, and $500 goes to the photo<br />
that was voted the best. The chain also created a MySpace page for the brand. (Mediapostpublications.com 6/18/07)<br />
Dairy Queen’s advertising accounts have been given to Indianapolis-based Optimedia US. The company’s former advertising<br />
agency, Louisville-based Paul Schultz, went out of business in June. Optimedia will oversee the chain’s media planning,<br />
buying and account service for Louisville and Lexington, KY; Nashville and Knoxville, TN; Birmingham, Dothan, Mobile,<br />
Huntsville and Montgomery, AL; and Jackson, MS. (Bizjournals.com 8/20/07)<br />
Dairy Queen has launched a Share DQ Joy promotion for the holiday season. The promotion is centered on the restaurant’s<br />
new holiday-themed website, sharedqjoy.com, where customers can watch and share customizable videos featuring a<br />
Blizzard-loving grandmother named Joy. The Share DQ Joy tagline also ties in with the company’s gift card promotion, which<br />
offers a free Blizzard or Orange Julius with the purchase of a $20 or more DQ gift card. (Businesswire.com 11/14/07)<br />
<strong>Menu</strong> Development |<br />
Dairy Queen added Yule Flip Peppermint Chip Blizzard to its Blizzard line. The item features peppermint candy pieces and<br />
chocolate chunks, mixed with vanilla soft serve. (Company Website)<br />
Dairy Queen launched freshly baked waffle cones and bowls on May 1. The bowls and cones, filled with soft-serve ice cream,<br />
can be ordered plain or with chocolate coating. The chain’s new waffle bowl sundaes come in three flavors including Fab<br />
Fudge, Chocolate Covered Strawberry and Turtle. The sundaes are priced at $3.50, while the cones are priced at $2.60. (NRN<br />
Daily News Fax 5/1/07)<br />
Dairy Queen will roll out its new all-beef hot dog to domestic units of the chain as well as its DQ Grill & Chill units. The new hot<br />
dog will be priced at $2. (NRN Daily NewsFax 6/13/07)<br />
Dairy Queen added a Pumpkin Pie Blizzard, made with DQ soft-serve ice cream, pumpkin pie filling and real pie crust.<br />
(Company Website)<br />
Technology |<br />
Dairy Queen premiered its new interactive website. Online viewers are greeted by a virtual Dairy Queen hostess who walks<br />
them through company information and games. Site features include The Blississippi, a river raft guide challenge; The Blizzard<br />
Factory, a Blizzard-making, mousetrap-like contraption requiring visitors to rearrange a series of gizmos; and Build a DQ Sign,<br />
allowing participants to create signs with personalized messages using a suction-cup letter changer. The website also hosts a<br />
DQ Cinema photo slideshow of DQ’s history and airs DQ’s latest TV commercials. (QSR Magazine Online 9/11/07)<br />
Dairy Queen launched its redesigned Blizzard Fan Club website. The site features Dairy Queen character “The Spoonman”<br />
playing blues, punk, classical, country and other musical styles with his signature spoons. Other features include the<br />
“Blizzualizer,” where members can create their Blizzard treats, and a “Behind the Blizzard” area where members can learn<br />
how Blizzards are made and watch Blizzard commercials. In addition, a timeline shows the history of flavors offered.<br />
(Qsrweb.com 10/3/07)<br />
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212
Personnel |<br />
Charles Mooty, CEO<br />
James Simpson, CFO<br />
Rich Shirk, V.P. of Purchasing<br />
Lon Brew, V.P. of Operations<br />
Michael Keller, V.P. of Marketing<br />
Bill Barrier, V.P. Research & Development<br />
News & Other |<br />
Dairy Queen has revamped its logo and plans to roll out the new design on its packaging and ads throughout the year. The<br />
new logo features a slightly elongated ellipse accented by curved blue and gold bars. The company did some redesign work<br />
on the logo a few years back, but this overhaul seeks to better align DQ with other company-owned concepts, such as Orange<br />
Julius. (Brandweek.com 2/05/07)<br />
Dairy Queen has begun replacing menu boards in all of its Dairy Queen, DQ Grill & Chill and DQ Orange Julius locations<br />
worldwide. The new menu boards feature photos of every item on the menu, with a focus on combo meals. The boards also<br />
include a separate panel display for a local menu, allowing operators to display regional foods. Dairy Queen expects to see a<br />
sales increase of 2% to 3% as a result of the change in its more than 5,000 stores. (QSRmagazine.com 11/19/07)<br />
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213
Damon's Grill<br />
Headquarters<br />
4645 Executive Drive, Columbus, Ohio 43220 USA<br />
Tel: (614)442-7900 Fax: (614)442-7785<br />
www.damons.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 170,000 223,650 268,000<br />
Company-owned ($000) - 50,400 69,000<br />
Franchised ($000) 170,000 173,250 199,000<br />
U.S. Number of Units 81 101 124<br />
Company-owned - 24 31<br />
Franchised 81 77 93<br />
International Sales ($000) 20,000 18,000 18,000<br />
International Units 6 6 6<br />
Average Sales/Unit ($000) 2,100 2,100 2,100<br />
Concept Positioning |<br />
Damon’s Grill is a chain of full-service, sports-themed, casual-dining restaurants featuring a varied menu of grilled entrees,<br />
including steak, ribs, chicken and seafood. Damon’s International, Inc. is the parent company of Damon’s Grill. Damon’s Grill<br />
is a sports-themed restaurant and boasts a high-energy atmosphere where patrons can watch the latest games on big screen<br />
TVs. Its clubhouse has tabletop speakers and interactive sports and trivia games. The sports bar fare appeals to a varied<br />
demographic. Damon’s Grill operates on an all-franchise model, except for a handful of company-owned stores. Damon’s Grill<br />
locations are in the Northeast, Mid-Atlantic, Midwest and Southeast.<br />
Units are primarily freestanding structures in suburban areas and can also be found as inline units in shopping centers. The<br />
standard prototype ranges from 5,500-6,500 sq. ft and seats approximately 215 guests Damon’s Grill offers a quiet dining<br />
room, bar and Damon’s signature Clubhouse. The clubhouse offers a lively atmosphere with theater-style booths, tables and a<br />
giant video screen. The proprietary multi-screen entertainment system offers sports, network programming and interactive<br />
games. The full service operations are open for lunch, dinner and snacks..<br />
Damon’s dates back to 1979 with the opening of a unit in Columbus, OH. In 1988, it signed a franchise agreement for its first<br />
unit outside of the U.S.; the unit is located in Lincoln, England. A second unit opened in Sheffield, England in 1995. In 1993,<br />
Damon’s International acquired its franchise and development rights as well as service marks and intellectual properties form<br />
Damon’s Mgmt., Inc./Damon’s Franchise Corporation of Hilton Head, SC. A franchise recruitment program continues to fuel<br />
growth.<br />
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<strong>Menu</strong> Positioning |<br />
Damon’s Grill is open for lunch, dinner, snacks and Sunday brunch. The menu at Damon’s Grill features appetizers, soups,<br />
salads and specialties including ribs, beef, chicken, salmon, combos, steaks, sandwiches, sides and desserts. Signature menu<br />
items include Onion Loaf—hand-breaded onion, fried and served with dipping sauce; Barbecued Ribs—served St. Louis style,<br />
with rich and tangy barbecue sauce, baked potato and house salad or soup on the side; Damon’s Steamboat—fresh bread<br />
filled with barbecue pork and topped with cheese; Pub-Style Fish & Fries—breaded and fried white fish, served with cocktail<br />
sauce, lemon, coleslaw and fries. New menu items include Baby Back Ribs served St. Louis style just as the Barbecue Ribs;<br />
12-oz. Chargrilled Prime Rib—marinated in burgundy wine and soy sauce, then slow-roasted and chargrilled; Smoked Beef<br />
Brisket—served with either Damon’s original barbecue sauce or Chipotle sauce, available as an entrée or as a sandwich;<br />
Bourbon Salmon—Atlantic Salmon, flame-grilled and glazed with Sweet Bourbon; Buffalo Chicken Pasta—prepared Damon’s<br />
style, featuring penne pasta with tender slices of Damon’s Flame-grilled Chicken Breast, mushrooms, spinach and crispy<br />
bacon tossed in a creamy Buffalo sauce topped with Gorgonzola cheese; and Barbecued Half Chicken featuring Damons’<br />
famous barbecue sauce. Damon’s Grill offers a full bar. A kids’ menu is available. <strong>Menu</strong> prices range from $1.99–$19.99.<br />
Checks average $15.17.<br />
<strong>Menu</strong> Development |<br />
Damon’s Grill rolled out five health-oriented dishes for a limited time. All of the entrées contain 600 calories or less and seven<br />
grams of saturated fat or less. New choices include Maui Salmon, Balsamic Steak, Chimi Chicken, Aloha Chicken and<br />
Blueberry Hill Salad. Prices start at $6.99. (Nation’s Restaurant News Online 1/30/07; NRN Daily NewsFax 1/19/07)<br />
Damon’s International Inc. is planning to list possible allergens in its dishes on its website. The company said that it is<br />
supplying this information because of customer demand. The company recently added new items that are less than 600<br />
calories each and is also phasing out trans-fat-containing frying oils and removing trans-fat-containing ingredients from its<br />
menu items. (Columbus Business First 2/15/07)<br />
Damon’s Grill rolled out several new menu items. Offerings are: • Angus-Kobe Mini Burgers—seasoned Angus-Kobe beef with<br />
kosher pickles and tomatoes on buttered and toasted buns served with a side of crunchy potato chips • Aztec Chicken—fireroasted<br />
chicken breast covered with pepper Jack cheese and topped with a zesty Southwestern cream sauce over garden rice<br />
• Angus-Kobe Santa Fe Salad—Angus beef served over fresh greens with bacon, tomatoes, chopped pickles, Monterey Jack<br />
and Cheddar cheeses and guacamole, tossed in a chili Dijon dressing and paired with a side of crunchy potato chips • Aztec<br />
Chicken Pasta—penne pasta and flame-grilled chicken mixed with mushrooms and red and green peppers, tossed in a<br />
Southwestern cream sauce and topped with fresh scallions • Aztec Chicken Hoagie—fire-roasted, seasoned chicken covered<br />
in pepper Jack cheese, finished with a creamy Southwester sauce and served on a roasted garlic Romano-Parmesan hoagie<br />
with a choice of french fries, baked potato, house salad, house Caesar salad or coleslaw • Bistro Turkey Hoagie—sliced<br />
turkey, bacon, lettuce, tomato, onion and Swiss cheese on a Romano-Parmesan hoagie with house-made cranberry mayo,<br />
served with a side of french fries, baked potato, house salad, house Caesar salad or coleslaw • Mushroom-Jack Brisket<br />
Hoagie—thinly sliced tender beef brisket, pepper Jack cheese, smoked portobello mushroom sauce and house-made chipotle<br />
mayo served on a Romano-Parmesan hoagie with a side of french fries, baked potato, house salad, house Caesar salad or<br />
coleslaw. (Company Website)<br />
Damon’s Grill rolled out a Lemon Berry Layer Cake for a limited time. The item features layers of berries in a lemon-flecked<br />
cake with a Key lime and white chocolate cheesecake layer topped with a butter crunch layer. (Company <strong>Menu</strong>)<br />
Damon’s Grill debuted several new salads for the summer. Varieties include: • Southwestern Chop Chop Salad—greens with<br />
red peppers, corn, tomatoes, Monterey Jack and Cheddar cheese tossed in an ancho ranch dressing and topped with<br />
scallions, tri-color tortilla chips and spicy grilled chicken or shrimp • Napa Valley Spinach Salad—baby spinach with bacon,<br />
dried cranberries, caramelized walnuts, red grapes and cucumbers tossed in a Pinot Noir sherry vinaigrette and finished with<br />
crumbled Gorgonzola and optional grilled chicken • Sesame Asian Salad—mixed greens, napa and purple cabbage, bok choy<br />
and carrots in sesame dressing with red peppers, edamame and diced pineapple, topped with scallions, crispy fried wontons<br />
and spicy sweet-and-sour-glazed grilled shrimp or chicken • Flame-Grilled Steak Salad—bacon, Gorgonzola cheese, roasted<br />
potatoes, diced cucumbers and tomatoes over lettuce, tossed in a chipotle ranch dressing and finished with flame-grilled<br />
sirloin steak basted with barbecue sauce. (Company <strong>Menu</strong>)<br />
Damon’s Grill added a selection of specialty meal toppers for customers wanting additional flavor in chicken or steak dishes.<br />
These include Provolone, Mushroom & Onion, sautéed mushrooms and onions with melted provolone cheese; Zesty Queso<br />
Fundido, a spicy blend of melted cheeses topped with diced tomatoes and scallions; and Savory Peppercorn Gorgonzola, a<br />
peppercorn gravy with melted Gorgonzola cheese. (Company Website)<br />
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215
Franchise Activity |<br />
Damon’s International Inc. is restructuring the chain by selling several company-owned units and reducing debt. The company<br />
sold 19 Damon’s restaurants to franchisee, Damon’s Management Group, in Pittsburgh. It also sold 12 pieces of real estate<br />
and is planning to sell the chain’s headquarters in Columbus, OH. By selling company-owned restaurants, Damon’s<br />
International has reduced its debt to $5 million from $40 million. In addition to financial restructuring, Damon’s is expanding its<br />
menu by adding healthier items, and introducing a new prototype featuring a new audio and visual setup and new restaurant<br />
design. Damon’s is expecting to open a number of new units in late 2007, including two in Columbus. (Columbus Business<br />
First 12/15/06)<br />
Personnel |<br />
Bruce Jackson, CFO<br />
Brett Freifeld, V.P. Research & Development<br />
Damon’s International Inc. hired Bruce A. Jackson as chief financial officer. Previously, Jackson served as an executive for<br />
Wendy’s International Inc. (Company Release 4/3/07)<br />
Damon’s Grill president and CEO Carl Howard announced that he will step down because his wife is suffering from an<br />
extended illness. Howard has held the posts since April 2006. He will continue with Damon’s as a consultant. The company<br />
has not named a successor. (Dispatch.com 11/30/07)<br />
News & Other |<br />
Damon’s International Inc.’s new president and chief executive, Carl Howard, plans to expand and redesign the chain now that<br />
the company’s debt has lowered. In addition, the restaurant will offer healthier items on its menu. (Bizjournals.com 12/22/06)<br />
Damon’s Grill is working on a new prototype and will continue to add healthier menu items in an effort to reposition the brand.<br />
The chain is working on the new design with WD Partners, a consulting firm based in Dublin, OH. To increase customer<br />
appeal, Damon’s added weeknight specials such as All-You-Can-Eat-Ribs for $15 on Tuesdays and 99¢ kids’ meals on<br />
Wednesdays at its Pittsburgh units. The chain is offering several low-calorie, low-fat items for a limited time and is planning to<br />
debut a new menu in upcoming months. There are currently 88 Damon’s Restaurants in operation. (The Columbus Dispatch<br />
1/21/07)<br />
Damon’s Grill is launching a strategy to rebuild its chain now that its financial restructuring is complete. The company sold 19<br />
company-owned units to a new Pittsburgh, PA, franchisee, Damon’s Management Group LLC, and closed under-performing<br />
restaurants last April. Earlier in 2007, Damon’s completed seven sale-leasebacks on most of its real estate to Servant<br />
Investments LLC so it can focus on the future of the brand. Now, Damon’s is focusing on a growth strategy to reposition the<br />
chain to offer a unique dining experience and better value while still operating as a sports-themed restaurant chain. The<br />
company is currently working to develop a new prototype that is slated to open in late 2007. The prototype will be designed to<br />
feature new audio-video technology, will appeal to a broader guest base and will be more cost- effective with a brighter<br />
environment. The strategy also includes menu changes such as adding a two-tier kids’ menu featuring healthier items and<br />
adding several new adult menu items, including entrées and salads under 600 calories. The company plans to expand mainly<br />
through franchising and expects to open between 10 and 15 new locations within the next two years. It will also sell its<br />
headquarters in Columbus, OH, and relocate to its Learning Center, which is nearby. (QSRmagazine.com 4/16/07)<br />
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published.<br />
216
Dave & Buster's<br />
Headquarters<br />
2481 Manana Drive, Dallas, Texas 75220 USA<br />
Tel: (214)357-9588 Fax: (214)350-0941<br />
www.daveandbusters.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
Chain Brands<br />
Jillian's Billiard Club & Cafe<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 260,000 240,000 195,000<br />
Company-owned ($000) 260,000 240,000 195,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 44 43 31<br />
Company-owned 44 43 31<br />
Franchised - - -<br />
International Sales ($000) 18,500 18,000 18,000<br />
International Units 2 2 3<br />
Average Sales/Unit ($000) 6,000 5,800 6,500<br />
Concept Positioning |<br />
Dave & Busters is a full-service entertainment-oriented restaurant. The public chain is owned by Wellspring Capital<br />
Management LLC. The company operates 46 Dave & Buster’s locations worldwide, all of them company-owned.<br />
Units vary in size; the largest prototype ranges between 50,000-70,000 sq. ft.A smaller 40,000- 49,000-sq-ft. prototype has<br />
been developed for secondary markets.Black-and-white tiled floors, stained-glass light fixtures, ceiling fans and wrought-iron<br />
railings give the dining room a turn-of-the-20th-century feel. The dining area and four-sided bar are raised to provide an<br />
overview of and access to surrounding entertainment areas, including a 20-screen video dome and tabletop games. Units also<br />
have sitdown food and beverage service in the entertainment areas. Units offer shuffleboard tables and a game area with<br />
more than 250 interactive and electronic games and simulators.<br />
The first Dave & Buster’s opened in 1982 in Dallas. In 2004, Dave & Buster’s acquired Jillian’s restaurant/entertainment<br />
complexes for $47 million. Due to underperformance at Jillian’s locations, Dave & Buster’s announced plans to convert most<br />
Jillian’s units to Dave & Buster’s concepts beginning in 2005. The company went public in 2005 and was acquired by<br />
Wellspring Capital Management LLC, a private equity firm, in a transaction valued at $375 million.<br />
<strong>Menu</strong> Positioning |<br />
Dave & Buster's broad-based 80-item menu of American favorites features appetizers, salads, low-carb classics, steak and<br />
ribs, seafood, pasta, chicken, lunch specials, burgers and sandwiches, sides and desserts. Popular menu items include Huli<br />
Huli Salmon—Atlantic salmon grilled and glazed with Hawaiian ginger sesame sauce and served with citrus rice and sautéed<br />
green beans; Peppercorn Ribeye Steak—a 12-oz. ribeye topped with herbed Boursin cheese and crispy onions, served with<br />
peppercorn sauce and a loaded baked potato; and Buffalo Chicken Wrapper—spicy chicken tenders, coated in spicy Buffalo<br />
sauce and served in a soft wrapper with lettuce, tomatoes, cheese, onions and bleu cheese dressing. Its brunch menu consist<br />
of an assortment of breakfast fare including French toast and egg entrées. Restaurants are open for lunch, dinner and Sunday<br />
brunch. Full-service bar operates in each location. A kids' menu is available. <strong>Menu</strong> prices range from $6.49–$18.99. Checks<br />
average $15.<br />
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published.<br />
217
Expansion Plans |<br />
Dave & Buster’s Inc. has sold three of its restaurants to National Retail Properties, LP, for $28.3 million. (Company Release<br />
11/17/06)<br />
Personnel |<br />
Michael Plunkett, V.P. of <strong>Menu</strong> Development<br />
Steve King, CEO<br />
Brian Jenkins, CFO<br />
Michael Plunkett, V.P. of Operations<br />
Starlette Johnson, COO<br />
Maria Miller, V.P. of Marketing<br />
Dave & Buster’s Inc. hired Brian Jenkins as chief financial officer. Previously, Jenkins served as senior vice president of<br />
finance for Six Flags Inc. (NRN Daily NewsFax 1/10/07)<br />
Dave & Buster’s president and director, David O. Corriveau, has resigned on March 16. He is the “Dave” in the chain’s name.<br />
(Company Release 3/16/07)<br />
Dave & Buster’s Inc. hired Starlette Johnson as president and chief operating officer. Previously, Johnson served as executive<br />
vice president and chief strategic officer for Brinker International Inc. (Company Release 3/30/07)<br />
News & Other |<br />
Dave & Buster’s Inc. reported for the third quarter ended October 29 a net loss of $5.2 million from a loss of $3.2 million for the<br />
same period last year. Revenues increased 10.1% to $116.3 million from $105.6 million. Same-store sales grew 4.3%.<br />
(Company Release 12/6/06)<br />
Dave & Buster’s Inc. reported for the first quarter revenues rose 6.8% to $135.5 million from $126.8 million for the same period<br />
last year. Same-store sales increased 3.7%. In addition, EBITDA for the first quarter grew 24.7% to $18.8 million from $14.7<br />
million. (Company Release 6/13/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
218
Del Taco<br />
Headquarters<br />
25521 Commercentre 2nd Fl, Lake Forest, California 92630 USA<br />
Tel: (949)462-9300 Fax: (949)462-7444<br />
www.deltaco.net<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 534,170 523,331 472,059<br />
Company-owned ($000) 319,116 322,031 300,500<br />
Franchised ($000) 215,054 201,300 171,559<br />
U.S. Number of Units 490 461 433<br />
Company-owned 275 267 259<br />
Franchised 215 194 174<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,136 1,139 1,090<br />
Concept Positioning |<br />
Del Taco is a limited-service Mexican chain that specializes in tacos and burritos. The chain is privately held by Sagittarius<br />
Brand and operates 490 units in Western states as well as Georgia, Missouri and Michigan, 215 of which are franchised.<br />
Units are generally freestanding and average 1,136 sq. ft. All but five locations have drive-thru windows. The décor includes<br />
an abundant use of red, green and yellow colors to convey a fun and festive Mexican theme. Business is takeout-based;<br />
seating is limited.<br />
Del Taco was founded in 1964. In the 1970s and 1980s, development of the brand was limited to California, but the company<br />
reacquired out-of-state development rights in 1992. In 1993, Del Taco filed for reorganization under Chapter 11 and emerged<br />
eight months later under the direction of company chairman and chief executive officer Kevin K. Moriarty. In 2006, Del Taco<br />
was acquired by Sagittarius Brands, parent company of Captain D's. Financial details were not disclosed. Del Taco is currently<br />
seeking franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Del Taco is open for breakfast, lunch and dinner, featuring Mexican and American items including tacos, nachos, burgers,<br />
burritos, breakfast, quesadillas, combo meals, fries, salads, drinks and shakes. Specialties include Big Fat Tacos—marinated<br />
steak or chicken with Secret Sauce or ancho chile sauce, lettuce, Cheddar cheese, tomatoes and Fat Taco bread; Works<br />
Burritos––eight layers of marinated grilled chicken, steak or veggie, rice, red sauce, Cheddar cheese, lettuce, sour cream,<br />
guacamole, tomatoes served in a tortilla; and Spicy Jack Quesadillas—marinated grilled chicken, spicy Jack cheese and green<br />
sauce in a tortilla. Breakfast offers egg burritos and egg quesadillas. Other popular menu items include Macho Nachos, Deluxe<br />
Taco Salad, Double Del Burger, Crispy Fish Tacos and Chicken Cheddar Quesadillas. Shakes come in strawberry, chocolate<br />
and vanilla flavors. <strong>Menu</strong> prices range from 39¢–$3.29. Checks average $4.<br />
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published.<br />
219
Expansion Plans |<br />
Del Taco opened its first Illinois location in Machesney Park. The unit is the first of five expected to open. (Company Release<br />
11/29/06)<br />
Del Taco opened its first unit in Illinois in Manchester and expects to open 16 more in the state by year’s end. One of those will<br />
be in Chicago. The Lake Forest, CA-based restaurant, which is owned by Sagittarius Brands, currently has 470 outlets<br />
nationwide. (NRN Daily NewsFax 12/04/06)<br />
Del Taco and Golden Corral are looking at sites in Janesville, WI, also known as “Chainsville.” The Golden Corral unit would<br />
become the town’s biggest restaurant, while Del Taco would be smaller, at 2,538 sq. ft. with a drive-thru. The restaurants’<br />
applications were introduced to the city’s plan commission on July 2. Applications are scheduled for a public hearing on July<br />
16. (Gazetteextra.com 6/29/07)<br />
Del Taco is planning to open 10 Florida units in the next four years. The new restaurants, which are slated for the Gainesville<br />
and Orlando markets, will be opened with new franchisee Floridel LLC. (Restaurantnewsresource.com 11/21/07)<br />
<strong>Menu</strong> Development |<br />
Del Taco debuted Crispy Shrimp Taco, made with warm flour tortillas, crispy shrimp, crunchy cabbage, secret sauce, salsa<br />
and a fresh lime wedge. The item is priced at $1.79 for one taco and $5.69 for a meal, including two tacos, small fries and a<br />
small drink. (Company Website)<br />
Del Taco is adding more seafood items to its menu after the popularity of its crispy fish and shrimp tacos. New items include<br />
Fish and Papas and Shrimp and Papas, both featuring seafood and fries. Both items are priced at $2.99. (Qsrmagazine.com<br />
2/22/07)<br />
Del Taco has added new fish and shrimp items to its menu, including Fish and Papas and Shrimp and Papas. Fish and Papas<br />
features two fresh fish filets with a jalapeño tartar sauce. Shrimp and Papas includes 10 shrimp pieces with an ancho chile<br />
dipping sauce. Both items are priced at $2.99 and come with crinkle-cut "papas" (fries).(QSR Magazine 2/22/07)<br />
Del Taco rolled out Taco Del Carbon, with two warm corn tortillas, shredded beef, California chili sauce, diced onions and<br />
fresh cilantro, and Shredded Beef Combo Burrito, featuring a warm flour tortilla with shredded beef, slow-cooked beans,<br />
grated Cheddar cheese and green sauce. (Company Website)<br />
Del Taco is relaunching its Spicy Chicken Burrito that now comes with twice the meat for the same $1.99 price. The burrito<br />
comes with grilled chicken, rice, beans, green sauce and grated Cheddar cheese, all wrapped in a flour tortilla. The relaunch<br />
will include a new seasonal ad campaign. (Businesswire.com 11/15/07)<br />
Franchise Activity |<br />
Del Taco will open seven franchised restaurants in Tennessee as part of its plan to expand beyond its West Coast locations.<br />
The quick-service Mexican brand offers tacos, burritos, quesadillas and nachos as well as hamburgers, fries and milkshakes.<br />
All items are made from scratch using fresh produce and other ingredients. Sagittarius Restaurants LLC is parent of Del<br />
Taco’s 500-plus units. (QSR Magazine Online 10/3/07)<br />
Personnel |<br />
C. Ronald Petty, President of Development<br />
Shirlene Lopez, CEO<br />
Jenet Erickson, V.P. of Purchasing<br />
James Stoops, V.P. of Operations<br />
Mimi Somerman, CMO<br />
Del Taco hired Barry B. Barnhart as vice president of franchise operations. Previously, Barnhart served as region vice<br />
president for Yum! Brands Inc. (Company Release 1/19/07)<br />
Del Taco hired Mimi Somerman as chief marketing officer. Previously, Somerman served as senior vice president of marketing<br />
for Johnny Rockets. (Nation’s Restaurant News 10/9/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
220
News & Other |<br />
Captain D’s Seafood Kitchen and Del Taco have opened their first dual-branded concept in Mt. Juliet, TN. Both quick-service<br />
chains are owned by Nashville-based Sagittarius Brands. Captain D’s operates more than 600 locations and Del Taco has<br />
more than 490 units across the U.S. (NRN Daily NewsFax 8/3/07)<br />
Del Taco announced that it will donate 25 cents from the sale of each Spicy Chicken Burrito through December 25 to aid<br />
California fire relief efforts. Donations will be made at all Southern California company-owned Del Taco units and participating<br />
franchise restaurants. (Businesswire.com 11/15/07)<br />
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published.<br />
221
Denny's<br />
Headquarters<br />
203 E. Main St., Spartanburg, South Carolina 29319 USA<br />
Tel: (864)597-8000 Fax: (864)597-8780<br />
www.dennys.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,293,000 2,237,000 2,177,000<br />
Company-owned ($000) 904,000 889,000 871,000<br />
Franchised ($000) 1,389,000 1,348,000 1,306,000<br />
U.S. Number of Units 1,468 1,503 1,527<br />
Company-owned 521 543 553<br />
Franchised 947 960 974<br />
International Sales ($000) 141,000 126,000 108,000<br />
International Units 77 75 76<br />
Average Sales/Unit ($000) 1,549 1,493 1,426<br />
Concept Positioning |<br />
Denny's Restaurants, the nation's largest full-service chain of family-style restaurants, are open 24 hours a day, seven days a<br />
week. The restaurants have uniform menus, with some regional and seasonal variations of American comfort food, offering<br />
breakfast, lunch and dinner as well as late-night items. Sales are fairly divided over four dayparts, although the breakfast menu<br />
(served all day) is its core business and accounts for the majority of sales. Operating a mix of both corporate and franchised<br />
stores, the company’s current focus is to become a more franchised-based operation. To meet its objective, Denny’s is selling<br />
company-owned units to franchisees.<br />
The typical Denny's, generally freestanding, averages 4,800 sq. ft. with seating for 140 customers. The chain prefers locations<br />
at intersections with heavy office, commercial and residential traffic. Interior décor is that of a contemporary diner, with tables,<br />
booths and at some locations, counter seating. Continuing its remodeling and refurbishing program, plans call for companyowned<br />
units to be remodeled on an eight-year cycle once the current program is completed. This re-imaging includes an<br />
updated exterior look as well as new signage, interior layout, uniforms and menu offerings. It is also placing increased<br />
emphasis on its bakeshop pie business, for which sales have exceeded expectations. Express-service menus and checkout<br />
service are also being tested.<br />
In 1953, Harold Butler opened Danny's Donuts, gradually adding to the menu until the store became a coffee shop, went<br />
public and merged with Winchell's Donut Houses. Denny's was adopted as the corporate name in 1972. It was acquired by<br />
Advantica in 1987, and took on the Denny’s Corp. name in 2002 when it split from Advantica’s Coco’s and Carrows concepts.<br />
In 2006, Denny's agreed to sell nearly 70 franchised units to National Retail Properties Inc. for $67 million.<br />
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222
<strong>Menu</strong> Positioning |<br />
Denny's menu features traditional breakfast, lunch and dinner fare, including French toast, pancakes, omelets, appetizers,<br />
burgers, sandwiches, salads, soups, steak, seafood, sides, desserts and beverages. The signature offering is its “Slam” line of<br />
breakfast combos, such as the Grand Slam, Lumberjack Slam and All-American Slam. Slams feature combinations of<br />
buttermilk pancakes, eggs cooked to order, choice of breakfast meat and sides. Other breakfast favorites include the Ultimate<br />
Omelet, French Toast Platter, Meat Lover’s Skillet and Country-Fried Steak & Eggs. Lunch and dinner menus include such<br />
favorites as the Philly Melt Sandwich, Chicken Deluxe Salad, Chicken Fried Chicken, Pot Roast, T-Bone Steak and Fish &<br />
Chips entrées. Newly introduced menu items include Homestyle Meatloaf, Grilled Shrimp Skewers, Grilled Chicken Alfredo<br />
and Mushroom Swiss Chopped Steak. Restaurants have also added a line of Signature Skillets for dinner including Chicken or<br />
Beef Pot Pie and Mandarin-Glazed Salmon. The menu is also putting emphasis on themed products such as All-Star Slams,<br />
and Major League Burgers. Along with the standard selection of soft drinks, juices, coffee and tea, Denny's has also rolled out<br />
a line of five Fusion Favorites beverages served in 22-oz. glasses for $2.25. The new beverage line offers Berry Banana OJ<br />
Fizzle, Pineapple Dream, Strawberry Mango Pucker, Fizzy Navel and Razzdango. In addition, approximately 33% of units<br />
serve alcoholic beverages. Desserts include Hot Fudge Brownie a la Mode, Caramel Apple Crisp and Creamy Cheesecake, as<br />
well as various pies, sundaes and splits. A kids’ menu is available, featuring kid-friendly favorites such as grilled cheese<br />
sandwiches, cheese pizzas, macaroni & cheese and mini hot dogs. <strong>Menu</strong> prices range from $2.99–$13.99. Checks average<br />
$7.20.<br />
Promotion Plans |<br />
Denny’s rolled out several new breakfast, lunch and dinner items for a limited time. The “Mega” Breakfast, 15-Minutes or Less”<br />
lunch and “Dinner Classics” items include: • Endless Lunch—an “endless” all-you-can-eat salad topped with tomato,<br />
cucumber, diced ham, red onions, shredded Cheddar cheese and a choice of dressing, served with an endless bowl of soup<br />
and dinner bread • Turkey Bacon Swiss Griller—thinly sliced turkey breast, two strips of bacon, Swiss cheese and mayo,<br />
served on grilled hot sourdough bread with a side of fries • Cordon Bleu Griller—two fried chicken strips, shaved ham, Swiss<br />
cheese and honey mustard dressing, served with french fries • Deli-Style Turkey Sandwich & Endless Soup—thinly sliced<br />
turkey breast, Swiss cheese, tomato, lettuce and mayo served on wheatberry bread with an unlimited bowl of soup •<br />
Homestyle Meatloaf—three slices of classic meatloaf, grilled and topped with brown gravy and served with a choice of two<br />
dinner sides and dinner bread • Meat Lover’s Omelette—an omelette stuffed with chopped bacon, diced ham, crumbled<br />
sausage, cheese sauce and shredded Cheddar cheese, served with two strips of bacon, two sausage links, hash browns and<br />
three buttermilk pancakes • Mega French Toast Slam—three slices of French toast, two strips of crispy bacon, two eggs, two<br />
sausage links and hash browns • Mega Meat Lover’s Plate—smoked sausage, a slice of grilled honey ham, two strips of crispy<br />
bacon, two sausage links, two eggs, hash browns and three buttermilk pancakes. (NRN Daily NewsFax 1/24/07; Company<br />
Website)<br />
Denny’s debuted a new promotion aimed at college students studying for final exams. The campaign will run through early<br />
May in Syracuse, NY, and Austin, TX. It highlights “Pick 3” appetizers for $9.99; a 20% discount on a Saturday night meal; free<br />
Wi-Fi; a text-message promotion; and an online sweepstakes to win a Dell gift card, a $50 Denny’s gift card and other prizes.<br />
The promotion is featured in college newspaper ads, direct mail and banner ads on websites such as Facebook.com. (Nation’s<br />
Restaurant News Online 4/06/07; NRN Daily NewsFax 4/09/07)<br />
Denny’s launched a new campaign that encourages guests to enjoy one of its many breakfast meals with full service instead<br />
of settling for a breakfast bar or fast food. The campaign features the tune “All Out of Love” by Air Supply. Television, radio,<br />
outdoor and online ads such as two 15-second television spots that show disappointing breakfast experiences are<br />
underscored by the song. The campaign is running on cable and network television that began Memorial Day weekend. The<br />
online ads can be accessed at www.dennys.com. (Company Release 5/24/07)<br />
Denny’s locations in Florida have launched a “Gators Gridiron Getaway” promotion to celebrate the beginning of its new<br />
partnership with the University of Florida Gators football team. The winner of the contest will receive club-seat tickets to the<br />
Gators game against the University of South Carolina on November 10 in Columbia, SC, and a football autographed by Gators<br />
Coach Urban Meyer. In addition, customers who purchase an entrée at any of Denny’s Florida locations from November 3–<br />
December 31 will receive a “Gator Slam” poster commemorating the Gator’s championship titles in football and basketball for<br />
the 2006–2007 season. (Nation’s Restaurant News 9/10/07)<br />
Denny’s is sponsoring the 2008 All-American High School Bowling Championships, giving high-school bowlers the chance to<br />
win up to $10,000 in scholarships and a shot at bowling with the pros on ESPN. Along with the Professional Bowlers<br />
Association and the U.S. Bowling Congress, Denny’s will select 34 students to participate in the tournament set for March in<br />
North Brunswick, NJ. All participants must be seniors and have a minimum 2.7 grade point average. This is the second year<br />
Denny’s is sponsoring the tournament. (Promo Magazine Online 9/5/07)<br />
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223
Denny’s teamed with Coca-Cola and Universal Music Group to offer free country music downloads and a chance to introduce<br />
a country artist at a concert. Customers who buy a Coca-Cola beverage and an item from the “Country Music Giveaway” menu<br />
will receive a scratch-off card for a free song download by a Universal artist. The card also contains a code that can be used to<br />
enter the VIP Country Music Experience sweepstakes. Denny’s promotion runs from October 8–November 14. (NRN Daily<br />
NewsFax 9/26/07)<br />
Denny’s Corp. has teamed up with nonprofit Tom Joyner Foundation to promote higher education for single parents. Starting<br />
in January, the two have pledged to award a $1,500 scholarship to a single parent attending the foundation’s school of the<br />
month, selected from the nation’s historically black colleges and universities. (Nation’s Restaurant News 11/1/07)<br />
<strong>Menu</strong> Development |<br />
Denny’s plans to eliminate trans-fats by changing margarine products and its frying oil. The company will introduce its transfat-free<br />
alternatives in early 2007. (Company Release 12/11/06)<br />
Denny’s has completed its switch to trans-fat-free oils in all of its locations. The restaurant is now using an oil that is trans-fatfree<br />
and enhances flavor, texture and appearance of fried food. (Company Release 3/15/07)<br />
Denny’s rolled out new appetizers, including Sweet & Tangy BBQ Chicken Wings, chicken wings covered in sweet and tangy<br />
BBQ sauce; Sweet & Tangy BBQ Chicken Strips, spicy golden-fried chicken strips coated in sweet and tangy BBQ sauce; and<br />
Sweet & Tangy BBQ Shrimp, 12 golden-fried shrimp covered in sweet and tangy BBQ sauce. (Company Website)<br />
Denny’s launched new flavors for its Juicy Fusion Favorites, including Very Double Berry, cranberry juice mixed with raspberry<br />
and lime flavors, and OJ Mango, orange juice blended with mango flavor. The chain also rolled out two new flavors for its<br />
Fusion Favorites: Cherry Cherry Limeade and Island Fizz. (Company Website)<br />
Denny’s introduced a Breakfast Cravers menu, with all of the items costing $5.99. Selections are Extreme Grand Slam, three<br />
strips of bacon, three sausage links, two eggs, hash browns and three buttermilk pancakes; Meat Craver’s Breakfast, cheesy<br />
hash-brown casserole topped with cheese sauce, smoked sausage, diced ham, crumbled sausage and two eggs, paired with<br />
two bacon strips, a sausage patty and three buttermilk pancakes; and Steak & Cheese Omelette, a three-egg omelet filled with<br />
Cheddar cheese and thinly cut grilled steak, finished with cheese sauce and served with hash browns and three buttermilk<br />
pancakes. (Company Website)<br />
Denny’s expanded its American Dinner Classics menu with the addition of The Captain’s Platter, golden-fried shrimp on a<br />
skewer and batter-dipped cod filet, paired with coleslaw and french fries or two other sides as well as dinner bread; and Spicy<br />
Queso Chicken, two grilled chicken breasts finished with Cheddar and American cheeses, seasoned ground beef, queso<br />
sauce and pico de gallo, paired with a choice of two sides and dinner bread. (Company Website)<br />
Denny’s added three new salads to its 15 Minutes or They’re Free menu. These include Crispy Asian Chicken Salad, goldenfried<br />
chicken strips or a grilled chicken breast, crispy Asian noodles, candied walnuts, cucumbers and Mandarin oranges over<br />
mixed greens with Asian sesame dressing, served with dinner bread; Chicken BLT Salad, mixed greens with grilled chicken<br />
breast or golden-fried chicken strips, grape tomatoes, chopped bacon, shredded Cheddar cheese and croutons with a choice<br />
of dressing and dinner bread; and Grilled Chicken Caesar Salad, grilled chicken breast or golden-fried chicken strips over<br />
romaine lettuce, topped with Parmesan cheese, grape tomatoes and croutons with Caesar dressing, served with dinner bread.<br />
(Company Website)<br />
Denny’s added two new burgers to its All Night Burgers lineup. Denny’s Slamburger features a beef patty topped with cheese,<br />
hash-brown casserole and an egg cooked to order, finished with a cheese sauce, served on a sesame bun and paired with<br />
french fries. The Full House Burger includes a beef patty topped with seasoned ground beef, Cheddar cheese and red onions,<br />
finished with cheese sauce, thin crispy onion rings, yellow mustard and ketchup and paired with french fries. (Company<br />
Website)<br />
Denny’s added two Fusion Favorites to its beverage menu. New additions are Cherry Cherry Limeade, cherry and lime flavors<br />
with Sprite, and Island Fizz, strawberry and mango flavors with orange juice, Sprite and lime. (Company Website)<br />
Denny’s added The Captain’s Platter and Spicy Queso Chicken to its dinner menu. The Captain’s Platter features fried shrimp<br />
and grilled shrimp on a skewer, and a batter-dipped cod filet. The Spicy Queso Chicken consists of two grilled chicken breasts<br />
topped with a blend of Cheddar and American cheese, specially seasoned ground beef, queso sauce and freshly made pico<br />
de gallo. Both meals include two sides and dinner bread. (Company Website)<br />
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224
Franchise Activity |<br />
Denny’s Corporation announced the start of its new Franchise Growth Initiative, a development program designed to spur<br />
growth of the chain in new markets across the country. Under the new program, multi-unit transactions have already been<br />
signed, including the sale of 34 corporate Denny’s stores to new and existing Denny’s franchisees, and agreements with those<br />
franchisees that call for the launch of more than 25 new restaurants. (Company Release 6/27/07)<br />
Personnel |<br />
Margaret L. Jenkins, Chief Marketing Officer<br />
Sam Wilensky, S.V.P. of Operations<br />
Peter Gibbons, V.P. of Product Development<br />
Nelson Marchioli, CEO<br />
Mark Wolfinger, CFO<br />
Mark Smith, V.P. of Purchasing<br />
Denny’s named Louis Laguardia vice president, talent acquisition and diversity. Previously, Laguardia served as vice president<br />
of staffing and diversity for Frito Lay North America. (Company Release 12/26/06)<br />
Denny’s named Mark Chmiel Senior Vice President of Concept Innovation, effective immediately. Previously, Chmiel served<br />
as Chief Marketing Strategist for Fresh Enterprises Inc. Chmiel’s new position at Denny’s is newly created. (Company Release<br />
4/10/07)<br />
Denny’s Corp. announced Jay C. Gilmore assumed the additional role of Chief Accounting Officer, effective May 23. Gilmore<br />
currently holds the positions of Vice President and Corporate Controller. The role of Chief Accounting Officer was usually held<br />
by Denny’s Chief Financial Officer, but shifted to Corporate Controller. (Company Release 5/23/07)<br />
Denny’s Corp. reached an understanding with its Senior Vice President and Chief Marketing Officer, Margaret L. Jenkins, to<br />
terminate Jenkins’ employment with the company, effective August 31. The separation agreement includes a lump sum<br />
severance payment of approximately $1.3 million, the immediate vesting of all stock options to Jenkins and a one-time<br />
payment from the company to Jenkins equal to the difference between the COBRA rate for continuation of the company’s<br />
group health benefits and the current active employee group health benefit premium rate for the next 24 months. (Company<br />
Release 8/3/07)<br />
News & Other |<br />
Denny’s Corporation reported for the third quarter ended September 27 net earnings increased 6.5% to $25.5 million from a<br />
net loss of $3.4 million for the same period last year. Revenues grew 3.8% to $258.2 million. Same-store sales rose 3.9%.<br />
(Company Release 10/26/06)<br />
Denny’s Corp. reported November same-store sales increased 0.1%. (NRN Daily NewsFax 12/4/06)<br />
Denny’s is planning to remove trans fats from its 1,500 units. This would include partially hydrogenated oils in foods prepared<br />
outside its kitchens. The company anticipates that the change to zero-trans-fat frying oil and trans fat-free margarines will be<br />
completed by June 2007. (NRN Daily NewsFax 12/12/06; TheState.com 12/12/06)<br />
Denny’s reported for the fourth quarter ended December 27 net earnings increased to $2.3 million from a loss of $4.5 million<br />
for the same period last year. Revenues grew 0.4% to $244.4 million from $243.4 million. Same-store sales rose 1.6%.<br />
(Company Release 2/15/07)<br />
Denny’s reported for the first quarter ended March 28 net earnings increased 71.4% to $1.2 million from $0.7 million for the<br />
same period last year. Revenues decreased 4.5% to $236.8 million from $248 million. Same-store sales fell 1.8% at companyowned<br />
units and 0.7% at franchised units. (Company Release 5/1/07)<br />
Denny’s suspended future purchases from poultry supplier House of Raeford over allegations of animal mistreatment. This<br />
announcement comes after a video of practices at a House of Raeford cultivation facility was made public by an animal<br />
welfare group. Denny’s says it is adamant about maintaining relationships with suppliers that adhere to animal welfare<br />
standards. (Yahoo! Finance 5/21/07; NRN Daily NewsFax 5/29/07)<br />
Denny’s reported for the second quarter ended June 27 net earnings increased to $11.5 million from $1.9 million for the same<br />
period last year. Revenues declined 1.1% to $240.9 million from $243.5 million. Same-store sales grew 2.8% at companyowned<br />
units and $4.0% at franchised locations. (Company Release 7/31/07)<br />
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Denny’s will transfer ownership of five of its company-owned locations in South Carolina to Craig Herman. Restaurants in<br />
Anderson, Boiling Springs, Duncan, Greenville and Spartanburg are being sold to Herman in late September. Herman is the<br />
former head of company operations at Denny’s, but left to become a franchisee. (Restaurantnewsresource.com 8/30/07)<br />
Denny’s lost a lawsuit and was ordered to pay $600,000 to 15 members of an African-American family who claimed their<br />
Caucasian waiter deliberately ignored them and used racial slurs. A federal jury in East St. Louis, IL, awarded each family<br />
member $5,000 in compensatory damages and $35,000 in punitive damages. (Abcnews.go.com 9/17/07)<br />
Denny’s Corp. is realigning its operational structure in order to better position the company to execute its strategic initiatives.<br />
The company is focusing on development, new products and new facilities to attract franchisees as well as customers to the<br />
chain. Denny’s has also restructured its field management for franchised and company units. (Food Institute Report 9/24/07)<br />
Denny’s is partnering with Pilot Travel Centers to develop an undisclosed number of restaurants in travel centers across the<br />
U.S. The first location is under construction in Mount Vernon, IL, and other units are expected to begin construction next year.<br />
Spartanburg, SC-based Denny’s operates or franchises 1,539 restaurants in the U.S., Canada, Costa Rica, Guam, Mexico,<br />
New Zealand and Puerto Rico. Pilot Travel Centers, based in Knoxville, TN, owns approximately 300 travel centers in 40<br />
states. (Nation’s Restaurant News 10/8/07)<br />
Denny’s Corp. sold 9.5% of its shares to investment fund Olstein Capital Management LP. Denny’s sold nearly nine million<br />
shares to Olstein Capital for $3.73–$4.40 per share. Olstein Capital plans to take an active role in Denny’s strategic direction.<br />
(NRN Daily NewsFax 10/12/07)<br />
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226
Dickey's Barbecue Pit<br />
Headquarters<br />
7770 Forest Ln., Dallas, Texas 75230 USA<br />
Tel: (214)691-5659 Fax: (214)691-6162<br />
www.dickeys.com<br />
Ownership: Private<br />
Segment: Full Service BBQ<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 152,500 118,300 77,500<br />
Company-owned ($000) 10,200 9,300 7,500<br />
Franchised ($000) 142,300 109,000 70,000<br />
U.S. Number of Units 152 85 65<br />
Company-owned 6 6 5<br />
Franchised 146 79 60<br />
International Sales ($000) 2,400 - -<br />
International Units 3 1 -<br />
Average Sales/Unit ($000) 1,280 1,391 1,275<br />
Concept Positioning |<br />
Dickey’s Barbecue Pit Restaurants operates fast-casual barbecue restaurants nationwide. Its format emphasizes counter<br />
service, as well as a drive-thru service that accounts for about 40% of sales. Dickey’s Barbecue Pit boasts a family<br />
atmosphere and prides itself on its secret family recipes. Its broad lunch and dinner menu includes eight smoked meats and<br />
16 vegetable side dishes and appeals to a wide demographic of diners. Dickey’s Barbecue Restaurants Inc. is the parent<br />
company of Dickey’s Barbecue Pit. All but a few units are franchised; approximately 4% of units are company owned. Dickey’s<br />
Barbecue Pit Restaurants is a national chain with units in 29 states.<br />
Units are primarily free-standing buildings or endcaps in urban and suburban locations. Prototypes typically average 3,000-<br />
4,000 sq. ft. and seat approximately 140 patrons. Restaurants are bright and spacious with bold colors like reds and yellows.<br />
The exterior presents a rustic look and often incorporates brick, worn wood and metal. The interior utilizes distressed wood<br />
and antiques as décor.<br />
Dickey’s dates to 1941, when grocer Travis Dickey opened his first Barbecue Pit in Dallas, serving barbecued beef, ham or<br />
sausage on waxed paper. The modest single-room barbecue counter was virtually unchanged until 1967, when Dickey’s sons<br />
Travis (T.D.) and Roland took over the business. They quickly expanded the concept through Dallas and northern Texas, and<br />
also began to broaden the menu, which now incorporates a number of proprietary recipes, menu systems and technologies. In<br />
1994 the two brothers decided to start franchising and the Dickey family continues to lead the business, which has become<br />
one of the fastest growing Southern-style barbecue chains. Dickey’s is currently seeking franchisees to launch full-format<br />
freestanding stores, co-branded units and locations in nontraditional sites such as airports, malls and food courts.<br />
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227
<strong>Menu</strong> Positioning |<br />
The menu at Dickey's features barbecued meats, as well as sandwiches, platters, vegetables and a variety of desserts for<br />
lunch and dinner. Dickey’s has built its reputation for great tasting barbecue by purveying slowly smoked meats, including beef<br />
brisket, pulled pork, hot links, Polish sausage, turkey breast, St. Louis-style spare ribs, smoked ham and chicken. Dry Texasstyle<br />
barbecue is accompanied by one of three sauces: the sweet and tangy original sauce, a spicy version with chiles and hot<br />
sauce, and a recently added sweet, vinegary version. Salads range from Pasta Salad, Broccoli Salad to Fruit Salad and<br />
Coleslaw. Some popular vegetable sides include Au Gratin Potatoes, Barbeque Beans, Jalapeño Beans, fried okra and corn<br />
on the cob. A selection of desserts and soft-serve ice cream is also offered. Non-alcoholic beverages are available. Meal<br />
combos for groups (four to six or six to nine) are available, as are catered meals for larger groups and meats by the pound. A<br />
kids’ menu is available as are Early Bird specials for senior citizens. <strong>Menu</strong> prices range from $1.89–$29.95. Checks average<br />
$15.50.<br />
Franchise Activity |<br />
Dickey’s Barbecue plans to expand its franchise system due to an increase in inconsistent sales. Currently, the company has<br />
48 stores in construction. (Company Website 2/12/07)<br />
Personnel |<br />
Sherry Sandiser, Director of Marketing<br />
Roland Dickey, President<br />
Owen Edwards, Director of Operations & Purchasing<br />
News & Other |<br />
Dickey’s Barbecue Pit is seeing an increase in sales due to growth from new stores. The company continues to grow and<br />
expects to open 60 restaurants per year for the next five years. (Company Website 4/4/07)<br />
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228
Domino's Pizza<br />
Headquarters<br />
30 Frank Lloyd Wright Dr., Ann Arbor, Michigan 48106 USA<br />
Tel: (734)930-3030 Fax: (734)747-6210<br />
www.dominos.com<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 3,223,157 3,315,174 3,173,179<br />
Company-owned ($000) 393,406 401,008 382,458<br />
Franchised ($000) 2,829,751 2,914,166 2,790,721<br />
U.S. Number of Units 5,143 5,092 5,008<br />
Company-owned 571 581 580<br />
Franchised 4,572 4,511 4,428<br />
International Sales ($000) 1,869,579 1,678,613 1,458,468<br />
International Units 3,223 2,987 2,749<br />
Average Sales/Unit ($000) 634 651 646<br />
Concept Positioning |<br />
Domino's Pizza is the second-largest pizza chain in the country, with over 8,300 locations worldwide. Domino’s Pizza, Inc. is<br />
the parent company of the chain. The chain specializes in pizza with a wide assortment of toppings, cheese bread, bread<br />
sticks and chicken wings. Domino’s boasts a fast-causal, customer-friendly atmosphere. Domino’s Pizza, Inc. franchises 90%<br />
of its locations.<br />
Stores are generally open from 4:30 p.m. until 11 p.m., catering to a primary customer base between the ages of 18 and 44.<br />
They are typically 1,200 sq. ft. and offer no seating. Interiors are designed to be inviting and customer friendly. Home delivery<br />
accounts for 85–90% of total sales; Domino's is the leader in pizza delivery.<br />
The company is focused on expanding its domestic delivery area, as well as opening new international locations. Domino's<br />
currently delivers in 55 countries, including at least 300 units in Australia and the UK; more than 500 in Mexico; and about 200<br />
in South Korea and Canada. Some 15–20 distribution centers across the country prepare pizza components from dough to<br />
condiments. The commissaries are wholly owned and provide all food ingredients and equipment necessary to operate a<br />
store.<br />
Domino's was founded in Ypsilanti, MI, in 1960, by Tom Monaghan; the name Domino's Pizza was first used in 1965.<br />
Franchising began two years later. Domino's Pizza International, Inc., formed in 1985, manages expansion abroad. In 1998,<br />
Monaghan announced his retirement as well as intent to sell the chain. A significant portion of his holdings were acquired by<br />
Bain Capital, Inc. for $1 billion. Domino's became a public company in July 2004, filing an initial public offering of $300 million,<br />
and currently trades on the New York Stock Exchange (NYSE) under the symbol DPZ. In March 2006, Domino's paid $145<br />
million to majority shareholder Bain Capital to buy back approximately six million shares. The company plans to continue its<br />
expansion efforts both stateside and in international markets through its franchising program.<br />
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229
<strong>Menu</strong> Positioning |<br />
Domino's menu features pizzas, sides and beverages. Pizzas are available in medium (12-inch) and large (14-inch) sizes.<br />
Pizza crust options include Classic Hand-Tossed, Crunchy Thin-Crust and Ultimate Deep Dish. Popular pizzas include the<br />
Deluxe Feast—spicy pepperoni, Italian sausage, green peppers, mushrooms, onions and cheese; Hawaiian Feast—pineapple,<br />
ham and cheese; and Vegi Feast—green peppers, onions, mushrooms, black olives and cheese. Customers can choose<br />
among 16 different toppings. Other menu items include Breadsticks, Cinna Stixs, Cheesy Bread, Buffalo Wings, Buffalo<br />
Chicken Kickers and Amazin’ Green Salads, which include Garden Fresh and Grilled Caesar Chicken options. Domino's<br />
international units offer menu options that cater to local tastes; in Japan, for example, customers can order squid. Dessert<br />
options include Brownie Squares, packaged bite-sized brownies with a side of fudge dipping sauce. <strong>Menu</strong> prices range from<br />
$7.99–$13.99 for pizzas and 99¢–$5.99 for sides and beverages. Checks average $11.<br />
Promotion Plans |<br />
Domino’s Pizza has launched an opportunity to win authentic Brooklyn prizes along with the introduction of its Brooklyn Style<br />
Pizza. Customers who order a two liter of Coca-Cola with any pizza has a chance to enter to win a vintage New York taxi cab<br />
complete with gift certificates for free pizza and Coca-Cola for a year. Each bottle of Coca-Cola has a sticker with a game code<br />
on it. Customers can enter by visiting the company’s website. (Company Release 10/30/06)<br />
Domino’s Pizza is offering free Brooklyn Style Pizzas to customers with the name “Brooklyn” or “Brooke Lynn.” The promotion<br />
began on November 28 and will run through December 17. (Company Release 11/28/06)<br />
Domino’s Pizza is offering any large pizza for $9.99 and a chance buy premium items available daily on Ebay.com for $9.99,<br />
such as a new 2007 Saab 9-3 Aero Convertible, under it’s new “Anything Goes” deal. The promotion officially started on<br />
January 1 and will end on February 5. (Company Release 1/2/07)<br />
Domino’s Pizza is selling a big screen Plasma television for $9.99 as a part of its Anything Goes Deal. (Company Release<br />
1/12/07)<br />
Domino’s Pizza joined with Lotus Cars USA Inc. to offer a 2007 Lotus Elise sports car for $9.99 through the restaurant’s<br />
“Anything Goes Deal.” (Company Release 1/31/07)<br />
Domino’s Pizza launched the “Great Debate” promotion at Texas Motor Speedway in Forth Worth on April 13–15. The<br />
promotion gives NASCAR fans the opportunity to choose their favorite pizza out of two of Domino’s most popular: the Philly<br />
Cheese Steak Pizza and the Brooklyn Style Pizza. Participants will be able to taste both pizzas and vote for their favorite. The<br />
promotion continues the weekend of April 21-22 at Phoenix International Raceway. The winning pizza will be the inspiration for<br />
a unique paint scheme on the Domino’s Pizza Toyota during the Aaron’s 499 Dream Weekend at the Talladega<br />
Superspeedway in Alabama. (Company Release 4/13/07)<br />
Domino’s Pizza hosted its annual Fast Ball for Charity Competition April 16 to benefit the Feltonville Boys & Girls Club in<br />
Philadelphia and the Harlem RBI in New York. Local media personalities and guest pitchers such as Philadelphia Police<br />
Commissioner Sylvester M. Johnson competed on the mound for the charities. For each pitch clocked over 60 mph, $100 went<br />
to the charities, earning up to a $5,000 donation from Domino’s. The event took place at the Holiday Inn Philadelphia Stadium.<br />
(Company Release 4/16/07)<br />
Domino’s is offering free movie downloads for a month when customers place an order online. Domino’s is also offering free<br />
music downloads and a chance to enter a sweepstakes to win prizes. All of the promotions are offered in conjunction with<br />
Domino’s current 555 Deal, in which three medium one-topping pizzas are offered for $5 each, through a partnership with<br />
FreshTracksMusic.com and Vongo. The movie downloads are offered through Vongo.com, a broadband movie download<br />
service. (Company Release 5/30/07)<br />
Domino’s Pizza is promoting its 555 Deal by rewarding customers who have five letters in their first, middle and last names<br />
with free 555 Deal meals. The first 100 people who provide proof of their name or their underage child’s name with the correct<br />
number of letters will receive $20 in gift certificates to redeem for the 555 Deal or any other Domino’s item. The 555 Deal<br />
consists of three medium one-topping pizzas for $5 each. (Company Release 6/28/07)<br />
Domino’s has teamed up with Xbox for a XII Days of Xbox holiday promotion. Every day from December 1–12, customers<br />
placing an order through dominos.com will receive a 48-hour trial of Xbox Live Gold, an online gaming and entertainment<br />
service. In addition, during each day of the promotion Domino’s will give away 10 Xbox 360 gaming consoles. (Yahoo! Finance<br />
11/29/07)<br />
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230
<strong>Menu</strong> Development |<br />
Domino’s Pizza introduced its new Cheesy Garlic Bread Pizza. The pizza features layers of cheese and a garlic bread flavor<br />
on a new light and buttery crust. It is priced at $9.99 for a medium and is available for a limited time. (Company Release<br />
2/8/07)<br />
Domino’s Pizza brought back the Philly Cheese Steak Pizza. It is priced at $9.99 for a medium. (Company Promo 4/05/07)<br />
Domino’s Pizza is offering customers a choice of how they want their pizza made, including a choice of toppings, sauce and<br />
how the crust is flavored, to try to reverse a downward sales trend. Customers can now choose from four different sauces:<br />
garlic Parmesan, four cheese, sweet marinara and original. Domino’s also introduced “High-rising pizza” in some markets to<br />
compete with frozen pizza companies. The company also plans to more actively promote its deep dish offering. In addition, the<br />
pizza chain is testing a Cheddar bacon melt pizza. (Brandweek.com 6/4/07)<br />
Domino’s Pizza teamed with Coca-Cola to roll out Coca-Cola Zero in its stores nationwide. In addition to the drink, the two<br />
companies will offer special fantasy football meal deals, available on Yahoo! Sports and ESPN.com’s fantasy football sites.<br />
(Company Release 9/24/07)<br />
Domino’s Pizza premiered an Oreo Dessert Pizza made with a thin crust layered with vanilla sauce and covered with Oreo<br />
cookie crumbles. Sweet icing is drizzled on top after the pizza is removed from the oven. Domino’s offers the Dessert Pizza for<br />
$3.99 with any purchase. (Yahoo! Finance 8/29/07)<br />
Domino’s introduced a Crispy Melt Pizza, made with two crispy thin crusts surrounding sauce, melted cheese and toppings. A<br />
medium one-topping Crispy Melt Pizza is $9.99. (Company Website)<br />
Franchise Activity |<br />
Domino’s Pizza Inc. franchisees have a choice of vendors for a computer system the company had developed, a federal<br />
district judge ruled May 23. Domino’s mandated that the hardware for the system be purchased from IBM. and the software<br />
from Domino’s. Franchisees complained that Domino’s just wanted to generate more franchisee revenue. Judge Richard H.<br />
Kyle ruled that the franchisees should be allowed to buy the hardware and software from any vendor as long as it met<br />
Domino’s specifications. (Associated Press 5/24/07)<br />
Domino’s Pizza unveiled its new U.S. Veterans Franchise Program. Under the program, qualified military veterans can receive<br />
a $20,000 franchise fee discount, operational savings, rebates and comprehensive training. Spouses of active military<br />
members can also participate in the program. (Pizzamarketplace.com 11/08/07)<br />
International Activities |<br />
Domino’s Pizza Enterprises Ltd. has acquired pizza chains in the Netherlands and Belgium. Domino’s bought Al Capone’s, a<br />
17-unit chain in the Netherlands, and Alvolo, an eight-unit chain in Belgium. Terms the deals were not disclosed. The chains<br />
will be rebranded as Domino’s over the next six months. Domino’s, which operates 620 international outlets mainly in Australia<br />
and New Zealand, has been looking to expand presence in Europe. (The Australian 1/03/07; The Age 1/02/07)<br />
Domino’s Pizza UK is set to increase pizza prices in the wake of surging mozzarella costs. The price of mozzarella for the<br />
chain has jumped 50% since June in part because of a poor grazing season for UK cattle. Additionally, Asian dairy demand<br />
and Australian droughts have combined to increase prices. Domino’s has absorbed extra costs to give franchisees time to<br />
change prices and menus. The higher prices, which will rise to £10.25-10.30 from just less than £10 per pizza, are slated to<br />
take effect November 8. (Reuters 11/01/07)<br />
Technology |<br />
Domino’s Pizza launched a new look on its website on February 13. The interactive website features free music downloads in<br />
support of its new Cheesy Garlic Bread Pizza. (Company Release 2/13/07)<br />
Domino’s Pizza used eBay as a marketing partner to promote its “Anything Goes Deal.” The chain sponsored a “treasure hunt”<br />
on the website for items valued at a total of $250,000. Consumers had to visit a special website to get clues on how they could<br />
find and buy products, including iPod Nanos, Gibson guitars and Sony flat-screen TVs, on eBay for $9.99. The promotion was<br />
supported by three online video series that appeared on social networking websites. One of these featured a female character<br />
selling her Saab for $9.99 because it was the wrong color. (Nations Restaurant News Online 2/05/07)<br />
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231
Domino’s Pizza has hired Verint Systems Inc. to enhance security of company-owned locations and distribution centers.<br />
Verint’s Nextiva Specialty Retail solution is designed to quickly identify suspicious transactions, minimize fraud and enhance<br />
overall effectiveness of store operations. Domino’s will outfit franchised locations with the solution after the company-owned<br />
units and distribution centers have been equipped. (Qsrmagazine.com 4/26/07)<br />
Domino’s Pizza is offering online ordering in most U.S. stores. Its revised website features colorful new graphics and easier<br />
navigation. The chain predicts that by 2010, 50% of all orders will be placed through digital technology. Domino’s, founded in<br />
1960, operates 8,449 franchised and company-owned stores across the U.S. and in more than 55 countries. (Yahoo! Finance<br />
7/31/07)<br />
Domino’s Pizza implemented mobile ordering for 2,500 of its U.S. locations. Customers can place orders on cell phones with<br />
Internet access. The new system is similar to Domino’s current online ordering website. User names, passwords, coupons and<br />
orders can be saved on both the website and the mobile ordering system. (Pizzamarketplace.com 9/27/07)<br />
Personnel |<br />
David Brandon, CEO<br />
David Mounts, CFO<br />
Loius Govaere, V.P. of Purchasing<br />
Jefferey Zwally, V.P. of Research & Development<br />
Tim Calwell, V.P. of Marketing<br />
David Mounts, E.V.P. of Distribution and Procurement<br />
News & Other |<br />
Domino’s Pizza Inc. reported for the fourth quarter ended December 31 net earnings declined 22.9% to $31 million from $40.2<br />
million for the same period last year. Revenues fell 5% to $435.3 million from $457.4 million. Same-store sales decreased 1%.<br />
(Company Release 2/23/07)<br />
Domino’s is focusing on its “Delivering the Dream” program, which lends financial assistance to aspiring minority franchise<br />
candidates in the form of loan guarantees and incentives. The program was developed to help current minority Domino’s team<br />
members run their own independent, successful Domino’s businesses. Since the program debuted in January 2006, three<br />
participants have opened their own Domino’s restaurants successfully. (Company Release 3/20/07)<br />
Domino’s Pizza Inc. completed its recapitalization. It now has a $1.85 billion debt facility and a $13.50 per share special<br />
dividend. The dividend is expected to trigger a near-term corresponding decreased in stock price. The company also has an<br />
open market share repurchase program that allows the company to purchase up to $200 million of DPZ stock. (Company<br />
Release 4/17/07)<br />
Domino’s Pizza reported for the first quarter ended March 25 net earnings declined 67.9% to $8.4 million from $26.2 million for<br />
the same period last year. Revenues fell 2.4% to $339.3 million from $347.7 million. Same-store sales for company-owned<br />
locations increased 0.6% and international location sales grew 3.8%, while franchised units dropped 3.4%. (Company Release<br />
5/2/07)<br />
Domino’s Pizza reported for the second quarter ended June 17 net earnings fell 90.6% to $2.3 million from $24.5 million for<br />
the same period last year. Revenues rose 4% to $340.3 million from $327.7 million. Same-store sales increased 2.1% at<br />
domestic units and 3.9% at international outlets. (Associated Press 7/24/07)<br />
Domino’s Pizza India Ltd. is co-branding with Baskin-Robbins to test ice cream at its 147 units in India. Vanilla, strawberry,<br />
chocolate and butterscotch ribbon will be offered in three portion sizes. Domino’s has more than 8,000 restaurants in 55<br />
countries and Baskin-Robbins operates more than 5,600 units worldwide. (NRN Daily NewsFax 7/20/07)<br />
Domino’s Pizza Inc. reported for the third quarter ended September 9 net earnings declined 55% to $11 million from $24.5<br />
million for the same period last year. Revenues rose 3% to $337.3 million from $326.7 million. The dip in earnings was blamed<br />
on rising food costs and higher interest expenses. (Associated Press 10/16/07)<br />
Domino’s Pizza is being asked by PETA to disclose what it has done to evaluate a less cruel method of slaughtering chickens<br />
called controlled-atmosphere killing. PETA, the owner of 150 shares of Domino’s stock, submitted the request in a shareholder<br />
resolution. Controlled-atmosphere killing is a method of slaughter in which the oxygen that chickens breathe is slowly replaced<br />
by an inert and nonpoisonous gas. PETA claims that this method is quicker and less painful for animals than the pizza chain’s<br />
current slaughtering process. PETA’s request comes on the heels of a similar shareholder resolution submitted to Brinker<br />
International in October. (QSRmagazine.com 11/14/07)<br />
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232
Don Pablo's<br />
Headquarters<br />
150 Hancock St., Madison, Georgia 30650 USA<br />
Tel: (706)342-4552 Fax: (706)342-4507<br />
www.donpablos.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 210,000 208,102 225,878<br />
Company-owned ($000) 210,000 208,102 225,878<br />
Franchised ($000) - - -<br />
U.S. Number of Units 95 96 101<br />
Company-owned 95 96 101<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,170 2,168 2,174<br />
Concept Positioning |<br />
Don Pablo’s is a full-service Mexican chain that specializes in made-from-scratch Tex-Mex and traditional Mexican dishes that<br />
appeal to a broad customer base. The chain is owned by Avado Brands Inc. and operates 91 Don Pablo’s company-owned<br />
units in the Midwest, East Coast and Southwest U.S. Avado also owns 22 Hops Grill and Brewery restaurants.<br />
Units are two-story buildings and range in size from 6,000-9,000 sq. ft. with seating for 230 in the dining room. A balcony<br />
encircles the first floor dining area and provides seating for an additional 70 patrons. A distinctive Mexican village plaza feeling<br />
is created with an open floor plan and the use of skylights and an indoor fountain. Plants, signs, artwork, stucco, brick and tile<br />
complete the Mexican design. Most units also offer outdoor patios for approximately 50 or more people. The company also<br />
has a single story prototype that has a smaller bar area with the same ambiance. Both designs have high ceilings and similar<br />
seating capacities.<br />
Don Pablo’s first opened in 1985 in Lubbock, TX, by DF&R Restaurants. In 1993, DF&R went public and in 1995, Avado<br />
acquired all the stock of DF&R to establish it as wholly owned subsidiary of that company. Currently, there are no major<br />
expansion plans for the company.<br />
<strong>Menu</strong> Positioning |<br />
Don Pablo's is open for lunch and dinner and features appetizers, soups, salads, enchiladas, tacos, burritos, sandwiches,<br />
Mexican pizzas, chimichangas and a wide variety of Mexican entrées including mesquite-grilled entrées like fajitas, carne<br />
asada and chicken. Signature menu items include Prairie Fire Bean Dip—refritos whipped with cheese, onions, jalapeños and<br />
spicy seasoning; Mama’s Skinny Enchiladas—three chicken enchiladas with ranchero sauce and melted cheese; Portabella<br />
Mushroom & Vegetable Fajitas—grilled portabella mushroom with corn, squash, zucchini and spinach atop of saffron rice with<br />
fire-roasted tomatoes; and the Sizzling Fajita Salad—garden salad with mesquite-grilled chicken or steak with fire-roasted<br />
corn, tomatoes, onions and peppers with choice of dressing. The menu also features Create Your Own Combo meals and<br />
customers can choose two or three combinations of tacos, enchiladas, tamales or rellanos, and a choice of side, including<br />
sweet corn cake, rice, refritos, black beans, charra beans, chile-mashed potatoes or garden vegetables. Its signature dessert<br />
is the Ice Cream Nachos. Don Pablo's offers a kids' menu. Full liquor service is available. <strong>Menu</strong> prices range from$7.49–<br />
$13.99. Checks average $10.<br />
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233
<strong>Menu</strong> Development |<br />
Don Pablo’s introduced Big Tex Bold Mex Combos featuring: • Flat Iron Steak with Flat Enchilada Stack—8-oz. mesquitegrilled<br />
flatiron steak served with Tex-Mex three-cheese Flat Enchilada Stack, topped with a fried egg ($12.99) • Grilled Chicken<br />
with Enchiladas—mesquite-grilled boneless chicken breast topped with fresh lime and pico de gallo, served with choice<br />
between Tex-Mex three-cheese Flat Enchilada Stack with fresh avocado or Papas Enchiladas ($9.99; $10.99 with Flat<br />
Enchilada Stack) • Grilled Shrimp with Enchiladas—two skewers of seasoned, mesquite-grilled shrimp, finished with cilantrolime<br />
butter sauce and paired with Tex-Mex three-cheese Flat Enchilada Stack with fresh avocado or Papas Enchiladas<br />
($13.99 with Papas Enchiladas; $14.99 with Flat Enchilada Stack) • Flat Iron Steak with Papas Enchiladas—8-oz. mesquitegrilled<br />
flatiron steak paired with Papas Enchiladas, chili mashed potatoes wrapped in corn tortillas and topped with enchilada<br />
sauce and cheese ($11.99). (Company Website)<br />
Personnel |<br />
Jeff Sears, Director of Purchasing<br />
John Radcliff, Director of Research & Development<br />
Paul Seidman, S.V.P. of Marketing<br />
Rick Barbrick, CEO<br />
Kurt Schnaubelt, CFO<br />
Don Pablo’s Mexican Kitchen hired Modesto Alcala as president and senior vice president of Avado Brands, the parent<br />
company. Previously, Alcala served as chief operating officer for Buca di Beppo. (NRN Daily NewsFax 2/19/07)<br />
News & Other |<br />
Pablo’s Fajita Grill is a newly developed concept from Avado Brands. With an anticipated opening in fall 2007 in Philadelphia,<br />
Pablo’s Fajita Grill is a quick-casual concept featuring fajitas that are grilled to order over an open flame. Avado Brands, parent<br />
company of Don Pablo’s and Hops* restaurants, considers Pablo’s Fajita Grill its future growth vehicle, with 100 units<br />
expected to be in operation by 2012. (Chain Leader p30 12/06; Company Website<br />
Avado Brands Inc. sold 83 of its Don Pablo’s and Hops Grillhouse and Brewery restaurants in a total of seven transactions.<br />
Terms for the transactions were not disclosed. Avado’s headquarters and 67 of the restaurants were sold to an affiliate of the<br />
company’s bankruptcy lender, DDJ Capital Management LLC. In addition, DDJ purchased all intellectual property and all<br />
materials and work related to Pablo’s Fajita Grill, a new Avado fast-casual concept under development. A court hearing to<br />
approve the deals is scheduled for December 10. (NRN Daily NewsFax 11/28/07)<br />
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published.<br />
234
Donatos Pizza<br />
Headquarters<br />
935 Taylor Station Road, Columbus, Ohio 43230 USA<br />
Tel: (614)416-7700 Fax: (614)416-7705<br />
www.donatos.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 175,000 171,000 171,000<br />
Company-owned ($000) 135,000 134,000 139,000<br />
Franchised ($000) 40,000 37,000 32,000<br />
U.S. Number of Units 175 180 180<br />
Company-owned 134 139 140<br />
Franchised 41 41 40<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,000 950 950<br />
Concept Positioning |<br />
Donatos Pizza is a fast-casual pizzeria offering high quality, value-priced pizzas, subs, salads, wings and desserts. Pizzas are<br />
made with aged Provolone cheese instead of mozzarella and are made to order with a choice of more than 19 toppings.<br />
Donatos is a privately-held company with 200 restaurants in five states.<br />
Units are primarily freestanding, though some units are in dual-user buildings and inline locations. Units provide dine-in,<br />
carryout, delivery, call-ahead drive up, catering and online ordering services. Donatos is currently testing 10 take-and-bake<br />
kiosks locations. A Donatos commissary manufactures its proprietary pizza dough and supports and services a total of 300<br />
stores.<br />
Jim Grote founded the company in 1963 in Columbus, OH. Donatos began franchising in 1991. In 1999, McDonald’s Corp.<br />
acquired the company. In 2003, the Grote family reacquired the company from McDonald's Corp. The company plans to<br />
steadily expand Donatos in existing markets.<br />
<strong>Menu</strong> Positioning |<br />
Donatos' lunch and dinner menu specializes in a variety of pizzas. The menu also features appetizers, subs, salads, lunch<br />
specials and beverages. Its signature item is The Original, a pizza with 100 pieces of pepperoni. Other pizza varieties include<br />
The Works, Chicken Vegy Medley, Serious Meat, Vegy, Mariachi Beef or Chicken and the Hawaiian. Individual topping<br />
choices include homemade sausage, ham, ground beef, fresh veggies, jalapeno peppers, olives and pineapple. Healthy dining<br />
options include salads, tortilla wraps and chicken wings. Pizza sizes are available in 7-, 12- and 14-inch varieties. Also<br />
featured are Big Don submarines, fresh salads and breadsticks. Alcoholic beverages are not served. <strong>Menu</strong> price range from<br />
$3.50–$14 and checks average $16.50.<br />
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235
Promotion Plans |<br />
Donatos Pizza has hired Ten United as its agency of record for its $7 million advertising account. The agency replaces<br />
Martin/Williams. (NRN Daily NewsFax 2/13/07)<br />
<strong>Menu</strong> Development |<br />
Donatos Pizza introduced its new Ciabatta Pizza on an artisan crust. The new gourmet pizza offers the brand’s signature<br />
toppings and ingredients and is priced at $7.99 for a 9 inch. (Company Website 2/12/07)<br />
Donatos Pizza introduced its new Fresh Mozzarella Pizzas. The pizzas include the Fresh Mozzarella Trio with pepperoni,<br />
sausage, mushroom, mozzarella and basil, and the Margherita, a thin-crust pizza lightly brushed with olive oil and topped with<br />
mozzarella, Roma tomatoes and basil with a Tuscan cheese blend. (Company Website 4/4/07)<br />
Donatos Pizza introduced the Donatos Stromboli, available for $4.29. The handheld stromboli is available in pepperoni,<br />
deluxe, three-meat, veggie and create-your-own versions, each wrapped in pizza dough. The deluxe features sausage, green<br />
peppers and onions; the three-meat includes pepperoni, sliced ham and sausage; and the veggie features green peppers,<br />
mushrooms, green olives and two cheeses. (Pizzamarketplace.com 9/18/07)<br />
Franchise Activity |<br />
Donatos Pizza, in the largest franchise deal in its history, signed a 60-unit agreement with Piedmont Pizzeria LLC calling for<br />
units in North Carolina and South Carolina over the next five years. The first unit was to open October 17 in Charlotte, NC. In<br />
addition, other franchisees are adding units in Ohio. (NRN Daily NewsFax 10/4/07)<br />
Personnel |<br />
Tom Krouse, Chief Concept Officer<br />
Jim Grote, CEO<br />
Doug Kourie, CFO<br />
Bob Bauer, V.P. of Purchasing<br />
Jane Grote Abell, COO<br />
Chris Miotke, V.P. of Marketing<br />
Donatos Pizzeria LLC will hire the daughter of the company’s founder as President when the time comes. Jane Grote Abell<br />
started helping out at the company at age 11. Since then, she has done odd jobs such as restaurant manager, driver and chief<br />
people officer. Abell will serve as Chief Operating Officer while her father, Jim Grote, will remain Chief Executive Officer and<br />
Chairman. (Bizjournals.com 4/11/07)<br />
Donatos Pizza rehired Linda Bernabie as director of education and leadership development. Bernabie left Donatos four years<br />
ago to become director of training and development for Marco’s Pizza Franchising. (Nation’s Restaurant News 9/10/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
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236
Dunkin' Donuts<br />
Headquarters<br />
130 Royall St., Canton, Massachusetts 02021 USA<br />
Tel: (781)737-3000 Fax: (781)737-4000<br />
www.dunkindonuts.com<br />
Ownership: Private<br />
Segment: Limited Service Donut<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 4,650,000 3,854,000 3,387,957<br />
Company-owned ($000) - - -<br />
Franchised ($000) 4,650,000 3,854,000 3,387,957<br />
U.S. Number of Units 5,368 4,815 4,522<br />
Company-owned - - -<br />
Franchised 5,368 4,815 4,522<br />
International Sales ($000) 350,000 289,000 249,277<br />
International Units 1,925 1,775 1,700<br />
Average Sales/Unit ($000) 915 911 841<br />
Concept Positioning |<br />
Dunkin’ Donuts is a chain of limited-service specialty restaurants featuring fresh doughnuts, bagels and other baked goods,<br />
including muffins, coffee rolls and croissants. Dunkin' Donuts has also built a large following behind its line of hot and cold<br />
beverages, namely its various flavored coffee drinks. Dunkin’ Brands Inc. is the parent company of Dunkin’ Donuts. Dunkin’<br />
Brands Inc. franchises the majority of its units.<br />
Units are generally open 24 hours day, with about 70% of its sales during the breakfast period. A typical full-producing unit is<br />
about 1,720 sq. ft. Most shops have remote seating, instead of counters, with select units offering a drive-thru window. The<br />
chain also offers satellite shops such as carts and kiosks to small stand-alone shops, with product supplied by a nearby unit<br />
for areas with high traffic and limited space. The company debuted a new prototype in recent years. The latest changes to the<br />
exterior and interior design elements include two drive-thru windows, updated signage, a bakery display and an espresso<br />
station. Additional changes include round granite tabletops, sleek chairs, in-house music and a coffee customizing station. In<br />
an attempt to become a more upscale concept, Dunkin' Donuts plans to introduce these changes systemwide. Dunkin’ also<br />
sells self-service branded products in convenience stores, gas stations and other foodservice outlets is continuing, with many<br />
units operating their own branded product routes. The chain offers its signature coffee online and orders are shipped within 48<br />
hours.<br />
In 1948, William Rosenberg opened a coffee and donut shop called “Open Kettle” in Quincy, MA. When a competitor opened a<br />
donut shop nearby in 1950, Rosenberg modernized his shop design and named it Dunkin' Donuts. In 1955, the company<br />
began franchising operations. In 1989, acquisition by Allied Domecq was completed. In 2000, the company opened its 5,000th<br />
unit. Its Mister Donut brand has been converted to the Dunkin' Donuts name. In 2004, Allied Domecq Quick Service<br />
Restaurants changed its name to Dunkin' Brands Inc. in an effort to reflect its flagship brand. In 2005, Allied Domecq was<br />
acquired by Pernod Ricard and Fortune Brands. In 2005, Pernod Ricard sold Dunkin' Brands for $2.43 billion to a group of<br />
private-equity firms, including Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners. The company is hoping<br />
to expand beyond the Northeast by focusing expansion efforts in Florida, North Carolina and Tennessee as well as Chicago,<br />
Dallas and Phoenix. Dunkin’ Donuts is also looking to expand into several international markets, with plans to open its first unit<br />
in Thailand and eventually mainland China by the end of 2007. The company wants to triple its stores systemwide to 15,000<br />
by 2015.<br />
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237
<strong>Menu</strong> Positioning |<br />
Dunkin' Donuts' menu features an assortment of donuts, bakery items, coffee and other hot beverages. Its signature item is<br />
donuts, available in a variety of plain, fancy and filled donuts, mini-donuts, Munchkins (donut holes) and cholesterol-free<br />
donuts, all made fresh daily. The most popular donut flavors include: Boston Crème, Glazed, Chocolate Glazed, Jelly,<br />
Chocolate Frosting and Old Fashioned. Breakfast sandwiches, croissants, soups, chili, muffins, bagels, brownies and cookies<br />
are also menued. Jumbo-sized cookies in Oatmeal Raisin, Chocolate Chunk and Peanut Butter Cup are priced at $1.49. In an<br />
effort to boost sales outside the breakfast daypart, Dunkin' Donuts has added non-breakfast items, including hot dogs wrapped<br />
in pastry and flatbread sandwiches. The company is also testing personal pizzas. Specialty beverages include Coolattas—<br />
available in Hazelnut, Kahlua, French Vanilla, Mocha, Strawberry and Orange Mango flavors—and iced coffees. Latte Lites<br />
feature 70 calories and zero grams of fat, and are prepared with espresso, skim milk and Splenda. Dunkin' Donuts introduced<br />
a line of smoothies nationwide in 2006, featuring three yogurt and fruit-blended drinks. In 2007, the chain added a line of<br />
Freshly Brewed Iced Teas in Original, Raspberry and Peach in the New England and upstate New York markets. <strong>Menu</strong> price<br />
range from 79¢–$6.49. Checks average $3.48<br />
Expansion Plans |<br />
Dunkin’ Donuts plans to expand into the metro Detroit market by opening at least 60 stores over the next five years. Five<br />
stores are planned for the Ann Arbor area, with the first set to open by year’s end. Dunkin’ Donuts currently operates 75<br />
locations throughout Michigan. (Detroit Free Press 1/25/07)<br />
Dunkin’ Donuts plans to open 50 outlets in the Knoxville, TN, market over the next six years. These stores will feature the<br />
company’s new design, which includes a fresh color scheme and logo, as well as expanded menu that “goes beyond donuts<br />
and bagels.” The units will be built in c-stores, in Wal-Mart stores and as freestanding units. (Tradingcharts.com 4/04/07)<br />
Dunkin’ Donuts plans to open 135 more locations over the next few years in Phoenix in addition to the chain’s 15 existing units<br />
in the area. The company plans to develop freestanding units with drive-thru service within shopping centers. All will be<br />
franchised. The first of the 135 could open within the next 18 months. The expansion in Phoenix is part of a nationwide<br />
expansion strategy that will triple the number of Dunkin’ Donuts locations to 15,000 by 2020. (Azcentral.com 5/1/07)<br />
Dunkin’ Donuts will open 80 stores in central Indiana over the next six years. The Massachusetts-based chain currently<br />
operates 33 stores in Indiana, but has no locations in the Indianapolis area. The first Indianapolis-area store is slated to open<br />
in August in Carmel, IN. The new stores will be freestanding units along commuter routes as well as kiosks in gas stations,<br />
office buildings and hotels. Dunkin’ Donuts is beginning a national expansion program to triple the number of Dunkin’ Donuts<br />
units in the U.S. to 15,000 by 2020. (Yahoo! Finance 6/28/07; Press Release 6/20/07)<br />
Dunkin’ Donuts is including theme park-based units in its national expansion plans. The first of these newly developed units<br />
will open in Hersheypark, a theme park in Hershey, PA, owned by Hershey Entertainment & Resorts. The new theme park<br />
units will be beverage kiosk models, situated along boardwalks. (QSRMagazine.com 6/20/07)<br />
Dunkin’ Donuts plans to open a new $1.2 million unit in Champaign, IL, that is expected to debut at the end of the year. The<br />
new store will have a drive-thru and will feature a Next Generation Sandwich Station that offers items such as personal pizzas,<br />
hash browns and flatbread sandwiches. Local franchisee Sunil Modi is opening the unit and plans to open more in Champaign,<br />
Urbana, Danville and Rantoul, IL. (News-gazette.com 7/4/07)<br />
Dunkin’ Donuts plans to open 105 restaurants in Pittsburgh and Allegheny County, PA, in the next several years. The first new<br />
units are slated to open within the next 18 months. Currently, the company operates 10 units in the area. (Associated Press<br />
8/23/07)<br />
Dunkin’ Donuts plans to triple its number of domestic locations to reach a total of 15,000 units over the next 10–15 years. The<br />
chain is currently seeking franchisees. (Company Website 8/23/07)<br />
Dunkin’ Donuts entered into a development agreement with Heartland Coffee Co. to open 105 units in Pittsburgh and<br />
throughout Allegheny County, PA, in the next several years. The expansion is the largest store development deal in Dunkin’<br />
Donuts’ history. Dunkin’ Donuts currently has 10 locations in the area. (Forbes.com 8/23/07)<br />
Dunkin’ Donuts is planning to triple its units in the greater Cincinnati and northern Kentucky region with the opening of 30<br />
stores over the next three years. The first of the new locations will open by the end of the year near the University of Cincinnati<br />
campus. It will also be the first Dunkin’ Donuts in Ohio to offer a newly expanded menu with afternoon snack options and<br />
savory items in addition to the chain’s donut and coffee menu. Furthermore, Dunkin’ Donuts expects to open as many as 20<br />
units in southeast Michigan over the next four years. These expansions are part of Dunkin’ Donuts efforts to triple its U.S.<br />
stores to 15,000 by 2020. (Cincinnati.com 11/5/07; Detroit Free Press Online 11/8/07)<br />
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238
Dunkin’ Donuts is planning to expand its footprint in Texas with up to 363 additional units. The company’s plan calls for 175<br />
Houston stores, 125 in Dallas and 63 in Austin. Dunkin’ Donuts is currently looking for franchisees in the Houston market. No<br />
timeframe for the expansion has been disclosed. (chron.com 11/20/07)<br />
Promotion Plans |<br />
Dunkin’ Donuts inked a three-year deal with Rachel Ray to promote its “better for you” menu items. The talk-show host and<br />
Food Network star will appear in the chain’s broadcast and print ads, in-store materials and online marketing programs<br />
through 2010. The first TV commercial is slated to air in April. Ray is also set to make personal appearances for Dunkin’<br />
Donuts. (NRN Daily NewsFax 3/09/07; Company Release 3/08/07)<br />
Dunkin’ Donuts celebrated the first day of spring by offering free 16-oz. cups of iced coffee. The company is trying to focus<br />
more on its beverages. (Associated Press 3/21/07)<br />
Dunkin’ Donuts is premiering 30-second ads featuring KISS guitarist Ace Frehley and supermodel Naomi Campbell. The chain<br />
is using national celebrities to penetrate new markets. Actor and director Zach Braff directed the commercial featuring<br />
Campbell. Dunkin’ Donuts operates more than 7,000 company-owned and franchised units worldwide. (Boston Herald Online<br />
7/17/07)<br />
Dunkin’ Donuts is promoting its Bacon Lover’s Supreme Omelet sandwich with online and broadcast ads featuring ESPN<br />
broadcaster Chris Berman. The sandwich consists of an omelet, assorted vegetables, marbled Colby Jack cheese and thickcut<br />
pepper bacon served on a fresh croissant. (Nation’s Restaurant News 9/3/07)<br />
<strong>Menu</strong> Development |<br />
Dunkin’ Donuts introduced its new Gingerbread Latte. (Company Release 11/27/06)<br />
Dunkin’ Donuts introduced its White Hot Chocolate to its beverage line. The white version of its hot chocolate is topped with<br />
whipped cream and is priced at $2.48 in New York and $2.19 in Boston. (NRN Daily NewsFax 12/28/06)<br />
Dunkin’ Donuts introduced the Maple Cheddar Sandwich to its breakfast sandwich line. The sandwich consists of a scrambled<br />
egg, a maple-flavored patty and white Cheddar cheese on a croissant. The item is priced at $2.99 and is available all day long.<br />
((Nation’s Restaurant News Online 1/30/07; NRN Daily NewsFax 1/30/07)<br />
Dunkin’ Donuts is testing several new menu items at select units nationwide. The chain is offering Flatbread Sandwiches in<br />
three different varieties, including turkey, bacon and Cheddar; ham and Swiss; and a three cheese option, as well as Grab-N-<br />
Go Pizza items and a Chicken Biscuit offering. . (Sarasota Herald-Tribune 1/29/07)<br />
Dunkin’ Donuts plans to introduce several new, all-day menu items such as flatbread sandwiches featuring three cheeses,<br />
turkey, bacon and cheese or ham and cheese on March 2 along with its latest “new concept” location in Philadelphia. The<br />
location will feature a warm bakery display and new logo. (NRN Daily NewsFax 2/28/07)<br />
Dunkin’ Donuts plans to offer “Free Iced Coffee Day” for the first day of spring, March 21, giving its customers a free 16-oz.<br />
cup of its premium iced coffee. (Company Release 3/01/07)<br />
Dunkin’ Donuts now offers personal pizzas, flatbread sandwiches and hash browns 24 hours a day. The store initially selling<br />
the items, located in downtown Chicago, is a model for future stores. The company is attempting to appeal to younger<br />
customers. A pepperoni pizza will cost about $3.99. (Suntimes.com 4/10/07)<br />
Dunkin’ Donuts introduced a new flavor to its smoothie line. Tropical Fruit is prepared with real pineapple, banana and coconut<br />
flavors with lowfat yogurt. It is available 16-, 24- and 32-oz. sizes, priced at $3.39, $4.39 and $4.99, respectively. (Nation’s<br />
Restaurant News Online 4/19/07; NRN Daily NewsFax 4/23/07)<br />
Dunkin’ Donuts introduced SoBe Energy Coolattas to its menu on June 7. The cherry citrus-flavored slushy is meant to provide<br />
refreshment as well as an energy boost for the on-the-go consumer. To promote the new drink, Dunkin’ Donuts is offering<br />
customers a chance to win $10,000 and other prizes in the national SoBe Energy Coolatta “Rip It Up” sweepstakes.<br />
(Qsrmagazine.com 6/7/07)<br />
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239
Dunkin’ Donuts is introducing new iced tea beverages in peach and raspberry flavors. Starting July 1st, Dunkin’ Donuts will<br />
offer freshly brewed iced tea drinks at its New England locations, with plans for a nationwide rollout in early 2008. In addition,<br />
Dunkin’ Donuts stores in Charlotte, NC, are testing the chain’s new Southern sweet iced teas. Dunkin’ Donuts plans to<br />
introduce the sweet teas in peach and raspberry flavors to select markets in Atlanta, Nashville and the Carolinas. Prices for<br />
the new item start at $1.69. (Boston.com 6/29/07)<br />
Dunkin’ Donuts is offering salads at select deli format locations. Choices include Mediterranean, Oriental and Chicken Caesar.<br />
(CSPNet.com 7/09/07)<br />
Dunkin’ Donuts is testing gourmet deli sandwiches at its new deli-format stores (which add sandwiches to traditional offerings<br />
of donuts and ice cream). Offerings include Turkey Pesto, Chicken Bruschetta, Pastrami Supreme, Toasted Pastrami, Toasted<br />
Italian and Pressed Cuban sandwiches. Sandwiches can be ordered hot or cold. (CSPNet.com 7/09/07)<br />
Dunkin’ Donuts will offer all menu items free of trans fat by October 15. The chain is currently serving trans fat-free donuts in<br />
New York City and Philadelphia and has tested the donuts in 400 locations throughout the country as part of a nationwide<br />
blind test. (Company Website 8/27/07)<br />
Dunkin’ Donuts introduced its new Bacon Lover’s Supreme Omelet, the third sandwich in the series of Supreme Omelet<br />
offerings geared toward breakfast commuters. The sandwich features an omelet of egg and assorted vegetables, three slices<br />
of thick-cut pepper bacon and Colby Jack cheese on a freshly baked croissant. Sportscaster Chris Berman, host of ESPN’s<br />
Monday Night Countdown, will promote the Bacon Lover’s Supreme Omelet in new television and radio commercials as well<br />
as online and in-store marketing. (Yahoo! Finance 8/21/07)<br />
Subway and Dunkin’ Donuts have joined the $28.5 billion pizza industry by offering small, personal-size pizzas. According to<br />
NPD Group reports, 9% of all meals eaten at restaurants include pizza. In response to increasing pizza demand, Subway<br />
offers $2.99 thick-crust pizzas, which arrive frozen at stores and then are baked in toaster ovens in 90 seconds. Meat toppings<br />
cost an additional $1 and veggie toppings are free. Dunkin’ Donuts is also offering made-to-order pizzas at $2.49–$2.99 each;<br />
the pizzas are oven-cooked in three minutes. McDonald’s tested pizza in units more than a decade ago, but removed the item<br />
after experiencing slow sales. (USA Today Online 9/10/07)<br />
Dunkin’ Donuts introduced four fall menu items: the Pumpkin Muffin, Pumpkin Donut, Pumpkin Spice Latte and Vanilla Spice<br />
Coffee. The items are available nationwide through mid-November. (QSRmagazine.com 9/26/07)<br />
Dunkin’ Donuts is now offering kosher menu items at 50 of its 840 New York stores. Most kosher franchises are located in<br />
Brooklyn, though a few are on Staten Island. Kosher certification requires a rabbi to perform weekly inspections to guarantee<br />
that kosher ingredients are used and ensure that the franchise does not stock ham, bacon or sausage. Meat for kosher<br />
Dunkin’ Donuts units is prepared offsite and kept separate from the donuts. (Staten Island Advance 10/27/07)<br />
Franchise Activity |<br />
Dunkin’ Donuts has a new franchisee: Keith Sims. A former offensive lineman for the Miami Dolphins and Washington<br />
Redskins, Sims and his two partners, Ken and Clint Privett, completed the purchase of two existing Plantation, FL, stores,<br />
making them among the largest Dunkin’ Donuts franchisees in Florida with 17 locations. (Sun-sentinel.com 6/8/07)<br />
A Dunkin’ Donuts Massachusetts franchisee, Bill Daly, bought a majority stake in 18 Dunkin’ Donuts franchises in Sarasota,<br />
FL, and the surrounding Hardee, DeSoto, Manatee and Charlotte counties. The sellers were partners Marvin Kaplan, Kevin<br />
Millard and Shawn Cabrall. Daly plans to develop an additional 26 units over five years. Daly’s plans for Florida fit well with the<br />
company’s expansion plan for 15,000 units throughout the country. (Heraldtribune.com 8/24/07)<br />
Dunkin’ Donuts is planning to open 70 locations in the Memphis area and 50 in the Baltimore area. Expansion, to begin in<br />
early 2008, will include freestanding and inline units. The donut chain is seeking franchisees to open 20 or more locations<br />
each. (Memphis Business Journal 9/21/07; Baltimore Business Journal 9/28/07)<br />
International Activities |<br />
Dunkin’ Donuts plans to open its first store in Taiwan. The company plans to eventually move into mainland China with<br />
agreements to be signed in the next six months. (Wall Street Journal 1/07/07)<br />
Krispy Kreme, Dunkin’ Donuts and Mister Donut are expanding store counts in China, Taiwan, South Korea and Japan as<br />
Western fast food gains popularity in Asia. The first donut chains in Asia have exceeded targeted sales and experienced long<br />
lines of customers. (TheStar.com 6/12/07)<br />
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Technology |<br />
Dunkin’ Donuts is using a software application to help it quickly open locations where it is in competition with Starbucks. The<br />
new system helps the company close deals more quickly with franchisees, manages information about the franchisees,<br />
including how financial results are going, and keeps track of each potential deal. The software can identify any problem areas.<br />
This is particularly important in the competition against Starbucks because Starbucks doesn’t franchise, which means that it<br />
can open locations more quickly than Dunkin’ Donuts. The software was developed by business intelligence vendor Oco Inc.<br />
(Informationweek.com 4/16/07)<br />
Personnel |<br />
Jon Luther, CEO<br />
Kate Smith Lavelle, CFO<br />
Will Kussell, COO<br />
Joe Scafido, Chief <strong>Menu</strong> & Concept Officer<br />
Frances Allen, Brand Marketing Officer<br />
Dunkin’ Donuts hired Frances Allen as Brand Marketing Officer. Previously, Allen served as Vice President of Marketing for<br />
Sony Ericsson Mobile. As Brand Marketing Officer, Allen will be responsible for development and execution of Dunkin’ Donuts’<br />
advertising and marketing strategies. (NRN Daily NewsFax 6/8/07)<br />
News & Other |<br />
Dunkin’ Donuts is testing its new prototype in Columbia, TN. The chain’s third such unit nationwide, it features a new design as<br />
well as an expanded menu. The menu includes the standard donuts and baked goods as well as espressos, made-to-order<br />
sandwiches, chicken biscuits, smoothies and pizzas. Dunkin’ Donuts expects to add as many as 100 outlets in central<br />
Tennessee. (Nashville Business Journal 12/11/06)<br />
Dunkin’ Donuts has a new store concept featuring the words “bake place” and “café.” The emphasis of the new concept will be<br />
on prepared foods, including breakfast pizzas and flatbread sandwiches. The store also has a contemporized version of its<br />
current logo. (Cspnet.com 3/7/07)<br />
Dunkin’ Donuts franchisee Jose Calhelha has been sentenced to 10 months in jail and fined $1 million. Calhelha illegally<br />
brought six Portuguese immigrants into the U.S. and employed them at his Connecticut stores. Calhelha was charged with<br />
recruiting undocumented workers then mistreating them. The workers were paid $250 for 85- to 90-hour work weeks without<br />
overtime. Calhelha’s daughter, Diana, was sentenced to one month house arrest and 250 hours of community service after<br />
pleading guilty to hiring undocumented workers. (NRN Daily NewFax 5/2/07)<br />
Dunkin’ Donuts plans to expand into several cities nationwide. The company plans to have at least 325 outlets in the<br />
Washington/Baltimore area, where it currently has 200 stores. It has signed agreements for 57 units in Washington, Maryland<br />
and northern Virginia. Dunkin’ is also set to open 37 stores in South Carolina with franchisee Kainos Partners LLC. The donut<br />
chain also expects to increase the number of stores in Phoenix from 15 to about 150 over the next few years and it also is<br />
looking to have 63 locations within a few years in Austin, TX, where it currently has one store. The company announced earlier<br />
this year that it plans to increase its total number of U.S. outlets to 15,000 by 2020. (TheState.com 4/29/07; AZCentral.com<br />
5/01/07; Austin American Statesman 5/01/07; The Washington Times 4/23/07)<br />
Dunkin’ Donuts launched its new gift card that can be customized with messages or photos and sent with a personalized<br />
greeting card. Customers can order the gift cards online and customize their gift cards with digital photos, a variety of fonts or<br />
the choice of a solid or patterned background. The gift cards can also be sent through regular mail, with an e-mail notice to<br />
recipients to notify them that a Dunkin’ gift card is on its way. The gift cards cost $4.50 plus the dollar value of the cards and<br />
shipping. (Bostonherald.com 5/31/07)<br />
Hersheypark has opened two Dunkin’ Donuts within the theme park. One store is a full restaurant outside the park entrance<br />
and the other is a beverage kiosk inside the new Boardwalk at Hersheypark in Hershey, PA. These are the first two Dunkin’<br />
Donuts units to be located inside a theme park. (QSRMagazine.com 6/20/07)<br />
Dunkin’ Donuts coffee has agreed to a retail distribution deal with Procter & Gamble Co. to sell the chain’s packaged coffee at<br />
Kroger, Publix, Albertsons, Safeway and other grocers for customers to brew at home. Dunkin’ Donuts is hoping to introduce<br />
the New England brand to customers in the West and South, where the chain is expanding. To prepare for the growth of the<br />
Dunkin’ brand, 40,000 grocery and other retail stores will launch the coffee nationwide. Procter & Gamble Co. will handle the<br />
roasting of the packaged coffee, distribution and a national marketing campaign based on the chain’s current “America runs on<br />
Dunkin” theme. (The New York Times Online 8/13/07; Chicago Tribune Online 8/13/07; CNNMoney.com 8/13/07)<br />
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241
Dunkin’ Donuts Franchising Division will be supported by Fish Consulting in creating and implementing an integrated public<br />
relations and marketing program. Fish’s involvement is part of Dunkin’ Donuts’ effort to expand to 15,000 domestic locations<br />
by 2020. Fish Consulting is a national communications consulting firm. (Company Release 8/21/07)<br />
Six Dunkin’ Donuts locations in Jefferson and Lewis counties in New York have been sold to a Central New York group that<br />
plans to add more locations. (Newswatch50.com 9/26/07)<br />
Dunkin’ Donuts recalled about one million pink and orange glow sticks that had been distributed as part of a promotion. The<br />
company is voluntarily recalling the glow sticks because they were not properly labeled to warn against choking hazards to<br />
children under the age of 3 when pieces are dislodged from the glow sticks. Dunkin’ Donuts has not received any complaints<br />
or reports of injury. (Chron.com 10/5/07)<br />
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242
Eat'n Park<br />
Headquarters<br />
285 East Waterfront Drive, Homestead, Pennsylvania 15120 USA<br />
Tel: (412)461-2000 Fax: (412)461-6000<br />
www.eatnpark.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 188,900 182,600 182,800<br />
Company-owned ($000) 188,900 182,600 182,800<br />
Franchised ($000) - - -<br />
U.S. Number of Units 80 79 79<br />
Company-owned 80 79 79<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,375 2,350 2,350<br />
Concept Positioning |<br />
Eat ‘n Park is a chain of full-service restaurants that bills itself as “America’s Favorite Family Restaurant.” The concept began<br />
more than 50 years ago as a “carhop” chain, serving customers in their cars. Today, restaurants include in-house bakeries,<br />
Sunday brunch, special midnight buffets on Fridays and Saturdays and a full menu available for dine-in or takeout service.<br />
Most units are open 24 hours a day, seven days a week for breakfast, lunch and dinner. Eat ‘n Park operates more than 80<br />
stores in Ohio, Pennsylvania and West Virginia. The company has a long-standing reputation for outstanding community<br />
service initiatives in the neighborhoods it serves.<br />
Units are freestanding, averaging approximately 6,500 sq. ft., and are located near interstate highways to accommodate<br />
travelers and large groups. The exterior is reminiscent of a 50s-style diner, while the interior is contemporary with high leatherbacked<br />
booths and a stylish café area near the entrance. A newer Eat ‘n Park prototype separates the coffee bar and<br />
restaurant with tiled entryways, offering two distinct looks for each section. A salad bar and hot food bar are near the<br />
restaurant side while a display case with sweets is positioned near the coffee bar. A warm palette of gold and sage colors,<br />
wood tones and dark patterned carpet decorate the restaurant’s sides, while dark wood floor, sage green walls, a fireplace,<br />
ultrasuede sofas and exposed ductwork overhead create a modern yet comfortable look in the coffee bar.<br />
The first Eat ‘n Park opened in Pittsburgh in 1949 by Larry Hatch. A decade later, the chain grew to nearly 30 locations.<br />
Additional expansion efforts were concentrated within a 60-mile radius of its home base. In 1989, with the opening of a unit in<br />
Erie, PA, an expansion program in a 250-mile radius of Pittsburgh began.<br />
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<strong>Menu</strong> Positioning |<br />
Eat 'n Park's varied menu includes breakfast, buffets, salad, appetizers, burgers, sandwiches, dinners, desserts, espresso<br />
bars, bakery items and seasonal specials. Breakfast is served all day, and includes standards like eggs, pancakes, waffles<br />
and omelets. Some specialty menu items include Chicken and Spinach Salad—chicken served on spinach with tomatoes,<br />
hard-boiled egg, mushrooms, bacon, red onions and hot bacon dressing; Black Bean Gardenburger—Southwest-spiced black<br />
been Gardenburger patty on a grilled Kaiser roll with greens, tomatoes, Cheddar cheese, chipotle mayonnaise and salsa; and<br />
the Wasabi-Crusted Salmon—salmon filet, basted with wasabi mayonnaise then coated with flaky Panko Japanese bread<br />
crumbs, oven-roasted and topped with chives. Seafood specials are offered daily from 11am to 9pm, and an all-you-can-eat<br />
fish fry buffet is offered every Friday. Eat n' Park has announced that all cooking oil used to prepare its fried food items will be<br />
trans-fat-free. Restaurants also feature a breakfast buffet and a soup and salad bar. Kids’, low carb, seniors’ and takeout<br />
menus are also available. <strong>Menu</strong> prices range between $3.99 and $12.79. Checks average $7.<br />
<strong>Menu</strong> Development |<br />
Eat ‘n Park will introduce its new Seafood Specials on February 19. The specials include Northwest Salmon Salad, Baked<br />
Lemon Sole, Baked Sole with Crab Stuffing, Asiago Shrimp Scampi, Nantucket Cod, Whale of a Cod Fish Sandwich, Fish and<br />
Chips and New England Clam Chowder. The items will be available through April 8. (Company Website 2/7/07)<br />
Eat 'n Park introduced several new items to its menu. New offerings include Bananas Foster French Toast, All-American<br />
Scrambler, Asiago Shrimp Scampi, Baked Lemon Sole, Baked Sole with Crab Stuffing, Eggs Benedict, Gulf Coast Spinach<br />
Bake Appetizer, New England Clam Chowder, Northwest Salmon Salad, Whale of a Cod Fish Sandwich, Rosemary Chicken<br />
and Strawberry Lemonade. The company is also offering senior versions of select items, such as Senior Bananas Foster<br />
French Toast, Senior Rosemary Chicken with White Wine Sauce and Senior’s Baked Lemon Sole, as well as Tuesday Senior<br />
Breakfast and Fruit Buffet Special. (Company Website)<br />
Eat’n Park is offering guests Strawberry Lemonade, mixing lemonade with sweet Torani Strawberry syrup over ice. (Company<br />
Release)<br />
Eat’n Park rolled out several new breakfast offerings. Options include: • All-American Scrambler—toasted bagel topped with<br />
scrambled egg and a choice of bacon or sausage with American cheese, paired with hash browns, home fries or potato<br />
pancakes and fresh fruit • Bananas Foster French Toast—three slices of Texas-cut French toast with bananas and warm<br />
Bananas Foster syrup paired with three pieces of bacon or sausage • Eggs Benedict—toasted English muffin topped with<br />
grilled Canadian-style bacon and two poached eggs, covered with hollandaise sauce and paprika and paired with hash<br />
browns, home fries or potato pancakes • MerryBerry Fresh Strawberry Waffle—a Belgian waffle topped with fresh sliced<br />
strawberries and strawberry sauce, served with three pieces of bacon or sausage • MerryBerry Strawberry French Toast—<br />
three slices of French toast topped with sliced strawberries and strawberry syrup, served with three pieces of bacon or<br />
sausage • MerryBerry Strawberry Pancakes—three buttermilk pancakes topped with sliced strawberries and strawberry sauce,<br />
with three pieces of bacon or sausage. (Company Website)<br />
Eat’n Park debuted new strawberry desserts, including MerryBerry Strawberry Shortcake, made-from-scratch strawberry<br />
pound cake topped with vanilla ice cream, strawberries, strawberry syrup and whipped cream, and MerryBerry Strawberry<br />
Dream Cake, ribbons of strawberry and amaretto cream surrounded by almond spice cake. (Company Website)<br />
Eat’n Park introduced Rosemary Chicken to its menu. The item features two chicken breasts seasoned with rosemary, black<br />
pepper, extra virgin olive oil, sautéed mushrooms and a white wine sauce paired with a choice of two sides and dinner rolls.<br />
(Company Website)<br />
Eat’n Park added a Grilled Chicken and Strawberry Salad featuring slices of chicken breast over crisp spinach topped with<br />
sliced strawberries, sliced almonds and house-made poppy-and-sesame seed dressing. (Company Website)<br />
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Eat’n Park created a Tastes of America menu featuring popular dishes that represent several regions across the country. The<br />
menu is highlighted by sandwiches, salads and samplers. The selection includes: • Kansas City BBQ Pork Sandwich—<br />
barbecued pulled pork and fried onions piled on a freshly baked kaiser roll; served with choice of one side • Carolina Pecan<br />
Pork Loin—two slices of pork loin, drizzled with olive oil, covered with crushed pecan and panko breadcrumbs, topped with<br />
melted butter, baked and served with housemade peach salsa, choice of two sides and freshly baked rolls • Georgia Peach<br />
Chicken—two seasoned, chargrilled chicken breasts, topped with housemade peach salsa and served with choice of two sides<br />
and freshly baked rolls • Texas Fajita Salad—crispy tortilla bowl filled with chicken strips, diced red and green peppers, red<br />
onions, shredded Cheddar cheese, salsa and sour cream; served with Cajun ranch dressing • California Sandwich Sampler—<br />
two freshly baked rolls served with lettuce, tomato, potato salad and choice of any two sandwich fillings, including: tuna salad;<br />
sliced ham and American cheese; sliced turkey and Swiss cheese; and sliced roast beef and Cheddar cheese • Arizona Grilled<br />
Chicken Quesadilla—chicken chargrilled with Southwest spices, stuffed into a tortilla shell with pepper Jack cheese, onions<br />
and chipotle mayonnaise • Philly Steak and Cheese—thinly sliced ribeye steak, grilled with onions and served on a buttered<br />
hoagie bun with Cheez Whiz and french fries on the side • Chicago Smothered Steak—grilled flatiron steak, topped with bleu<br />
cheese crumbles, Alfredo sauce and fried onions; served with choice of two sides and freshly baked rolls (Company Website)<br />
Eat’n Park premiered its Black Angus Superburger. The new item features two chargrilled 6-oz. Black Angus patties<br />
smothered in melted cheese, with sliced pickles, shredded lettuce and Sauce Supreme, all on a double-decker sesame-seed<br />
bun. The Superburger is the biggest burger the chain has ever offered. (PRNewswire.com 11/30/07)<br />
Personnel |<br />
Regis Holden, Director of <strong>Menu</strong> Development<br />
Kevin O'Connell, S.V.P. of Marketing<br />
Dale Springer, S.V.P. of Operations<br />
Brooke Broadhurst, S.V.P. of Purchasing<br />
James Broadhurst, CEO<br />
Daniel Wilson, CFO<br />
News & Other |<br />
Eat ’n Park’s 79 units are now smoke-free. The company has decided to enforce a smoke-free policy before pending state<br />
bans become effective. Eat ’n Park will also provide a yearlong cessation program to the smokers among its 7,000 employees.<br />
(Pittsburgh Post-Gazette 6/1/07; NRN Daily NewsFax 6/1/07)<br />
Gluten-free menu items are becoming more common in restaurants as the foodservice industry becomes increasingly aware of<br />
special dietary needs. Eat’n Park, Outback Steakhouse and P.F. Chang’s China Bistro all have expanded their menus to<br />
include wheat-free, vegetarian and vegan options. (Pittsburgh Post-Gazette Online 7/19/07)<br />
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245
Einstein Bros. Bagels<br />
Headquarters<br />
555 Zang St. Suite 300, Lakewood, Colorado 80228 USA<br />
Tel: (303)568-8000 Fax: (303)568-8039<br />
www.einsteinbros.com<br />
Ownership: Private<br />
Segment: Limited Service Bakery/Café<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 328,500 301,436 309,958<br />
Company-owned ($000) 295,000 279,431 292,996<br />
Franchised ($000) 33,500 22,005 16,962<br />
U.S. Number of Units 414 419 425<br />
Company-owned 341 351 371<br />
Franchised 73 68 54<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 866 827 729<br />
Concept Positioning |<br />
Open seven days a week from early morning until late evening, the bulk of Einstein Bros.’/Noah’s NY Bagels’ quick-casual<br />
bakery sales are during the breakfast and lunch day parts. Customers place and pick up orders at a service counter for either<br />
on-premise dining or takeout. Bulk containers of its cream cheeses, coffees and teas are also available for carryout. Einstein<br />
Bros. is a wholly owned subsidiary of Einstein Noah Restaurant Group, Inc., headquartered in Lakewood, CO. The company<br />
operates 340 locations and licenses over 100.<br />
All units, regardless of brand, average 2,200 sq. ft. with table or counter seating available. Where feasible, outdoor seating is<br />
also provided. The overall atmosphere of an Einstein unit is reminiscent of a neighborhood coffee shop, complete with a rack<br />
of daily newspapers for customer enjoyment. In 2004, Einstein Bros. introduced the Einstein Bros. Café prototype, a more<br />
urbane concept designed to encourage guests to dine in, rather than carry-out. Orders are served on plates with flatware, and<br />
a serving staff is available for guests. The exterior features glass, steel and aluminum. The company originally planned to<br />
convert all of its units to the new Café prototype—an idea that has since been scrapped due to underperformance of Café test<br />
units. In 2006, Sodexho USA announced the opening of its first Einstein Bros. unit in spring 2006 at the Pearl Harbor naval<br />
base in Honolulu, HA. The opening comes from a five-year deal between Sodexho and the chain.<br />
Einstein/Noah Bagel Corp. was formed in early 1995 by Boston Chicken through the acquisition of several regional bagel<br />
chains that were then converted to its flagship brand. Noah's was acquired in early 1996 for some $100 million in cash and<br />
stock. In 1999, the company began testing the Einstein Bros. Bagel concept in the Los Angeles area by converting three to<br />
five of the 39 Noah’s New York Bagels units to Einstein restaurants. In 2000, the company filed Chapter 11 bankruptcy. In<br />
2001, following a protracted battle, New World Coffee-Manhattan Bagel, Inc. and its affiliates, Einstein Acquisition Corp. and<br />
Greenlight New World LLC, became the winning bidder for the assets of Einstein/Noah. Bankruptcy court approved New<br />
World’s bid of $160 million in cash plus assumption of up to $30 million of certain operating liabilities. The deal includes<br />
Einstein/Noah’s roughly 485 units, a manufacturing facility in Los Angeles, a support center in Golden, CO, and all trademarks<br />
and intellectual property rights. Einstein Bros. is currently expanding its franchisee base, primarily in the Southeast U.S. In<br />
2007, it was reported that New World Restaurant Group, Inc. planned to propose a public offering of its stock.<br />
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<strong>Menu</strong> Positioning |<br />
Einstein Bros. Bagel's menu features bagels, breakfast sandwiches, paninis, salads, soups, sandwiches and beverages.<br />
Eighteen bagel varieties are available, including honey whole wheat, cinnamon sugar, cranberry and wild blueberry bagels. In<br />
addition, 11 shmear flavors are offered, including the 25% reduced fat flavors strawberry, maple raisin & walnut, jalapeño<br />
salsa and garden veggie. Popular entrée menu items include: Italian Chicken Panini on Ciabatta—roasted chicken, pepperoni,<br />
pesto, spinach, roasted red peppers and mozzarella cheese; Tasty Turkey on Asiago Bagel; Bros Bistro Salad—raspberry<br />
vinaigrette, roasted walnuts and Gorgonzola cheese; and Gourmet Bagel Dogs, served with choice of side and a pickle;. The<br />
menu also features lowfat and low carb drinks, soups, salads and sandwiches. Juice, gourmet coffee and tea are all available.<br />
<strong>Menu</strong> prices range from 89¢–$11.99 for bagels and other breakfast items, and $4.59–$6.79 for entrées. Checks average $6.<br />
Expansion Plans |<br />
Einstein Bros. Bagels opened its eighth licensed location this year at the University of Michigan Medical Center. ARAMARK<br />
will operate the location under an Einstein Bros. Bagel license agreement. ARAMARK currently operates 33 Einstein Bros.<br />
Bagel license locations across the country. (Company Release 7/17/07)<br />
Einstein Bros. Bagels opened a unit in Naples, FL, on July 14. The location is the second in the Naples area for the chain and<br />
is one of several new Einstein Bros. locations planned to open across the country in 2007. (Company Release 7/12/07)<br />
Einstein Bros. Bagels opened a new location at Ft. Leavenworth, KS, on June 26. The new restaurant is being operated by<br />
The Army & Air Force Exchange Service under a license agreement. The Army & Air Force Exchange Service operates seven<br />
other Einstein Bros. locations. (Company Release 7/26/07)<br />
Einstein Bros. Bagels will open a new unit in Henderson, NV, on August 11. The restaurant will be the 11th unit for the chain in<br />
the Las Vegas market. (Company Release 8/9/07)<br />
Einstein Bros. Bagels opened a licensed location at East Carolina University on August 18. The eatery is the 11th licensed<br />
location to open this year. The company plans to open a total of 30–40 licensed locations this year. (Company Release<br />
8/20/07)<br />
Einstein Noah Restaurant Group Inc. opened an Einstein Bros. Bagels unit at the University of Tennessee. (Food Institute<br />
Report 9/24/07)<br />
Einstein Bros. continues its growth in Florida with an opening in Maitland on October 21. (Company Release 10/25/07)<br />
Einstein Bros. Bagels has opened a store at the University of Memphis. The restaurant is the 69th location currently open on a<br />
college campus and the 17th licensed location to open this year. (Memphis Business Journal 10/17/07)<br />
Einstein Bros. Bagels opened a store October 15 at Georgia Tech in Atlanta. The restaurant is the chain’s 70th location<br />
currently open on a college campus and the 18th licensed location to open this year. (cnnmoney.com 10/29/07)<br />
<strong>Menu</strong> Development |<br />
Einstein Bros. Bagel added a line of natural chicken sandwiches ($6.59) at updated units in the Chicago and Atlanta areas.<br />
The sandwiches proved to be successful for the company’s sibling chain Noah’s Bagels. (Restaurants & Institutions 11/06<br />
p15)<br />
Einstein Bros. Bagel launched new beverage and bagel offerings for the holidays. The Pumpkin Spice blended drink is<br />
prepared with pumpkin sauce, vanilla and a whipped-cream topping, and the Candy Cane drink blends peppermint candies<br />
with vanilla. The new coffee is medium-bodied with hints of cinnamon, hazelnut and vanilla. The chain’s Candy Cane Bagel<br />
features red and white potato dough twisted together and dusted with powdered sugar. (Nation’s Restaurant News Online<br />
11/16/06)<br />
Einstein Bros. debuted four new sandwiches, all prepared with hormone-free chicken. The new offerings include Spicy<br />
Chicken on Onion Challah, red chili-grilled chicken breast with lettuce, tomato, red onion and Gorgonzola mayo; Thai Chicken<br />
with Peanut Sauce, grilled chicken breast marinated in chili-lime vinaigrette with Asian slaw, served on a challah roll; Caesar<br />
Chicken on Onion Challah, grilled chicken breast on crisp romaine lettuce with tomato, Asiago cheese, Caesar dressing and<br />
Einstein’s garlic spread; and Grilled Chicken Bacon & Swiss, chicken breast, crispy bacon, lettuce and tomatoes with a creamy<br />
mustard spread, served on a challah roll. (Nation’s Restaurant News Online 6/13/07; NRN Daily NewsFax 6/14/07)<br />
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Einstein Bros. introduced two low-fat blended beverages, Guava Banana and Papaya Yogurt. Other flavors include<br />
Strawberry, Vanilla, Cookies & Cream, Café Caramel, Café Latte and Café Mocha. (Nation’s Restaurant News Online 6/13/07;<br />
NRN Daily NewsFax 6/14/07)<br />
Einstein Bros. Bagels and Noah’s New York Bagels are introducing reduced-fat and trans-fat-free menu items. Einstein Bros.<br />
restaurants will offer two low-fat blended drinks and four new sandwiches made with hormone-free chicken. Einstein Noah<br />
Restaurant Group is the parent company of both restaurants. (NRN Daily NewsFax 6/14/07)<br />
Einstein Noah Restaurant Group Inc. reintroduced its fall flavors on September 12. Fall items at Einstein Bros. Bagels and<br />
Noah’s Bagels locations include the Pumpkin Bagel with Pumpkin Cream Cheese; Pumpkin Muffin with streusel, cinnamon<br />
crunch or cream-cheese icing; and pumpkin-shaped Iced Sugar Cookies. The company is also offering fall beverages<br />
including Autumn Roast Coffee, Pumpkin Latte and Pumpkin Bros. Blender. The items are available through October.<br />
(Company Release 9/10/07)<br />
Einstein Bros. Bagels and Noah’s Bagels are offering seasonal menu selections for the holidays. Beginning in mid-November,<br />
the two chains are offering a bagel wreath, featuring red and green bagels loaded with cranberries and braided with plain<br />
bagels into a holiday wreath. Also available are a Cranberry Orange Bagel, Candy Cane Bagel, Candy Cane Iced Sugar<br />
Cookie and Lemon Pound Cake. (Company Release 11/1/07)<br />
Franchise Activity |<br />
Einstein Bros. Bagels is expected to start franchising. Einstein’s owner New World Restaurant Group will focus franchising<br />
efforts on the Southeast, with those outlets resembling the prototype that was introduced in Atlanta and Chicago this past year.<br />
The new design features more seating and new menu boards, which make a clearer distinction between breakfast, lunch and<br />
all-day items. The chain is also using wireless handhelds to take orders and transmit them to the kitchen. New menu items<br />
include smoothies, specialty coffee drinks, breakfast paninis, egg sandwiches and several new sandwich offerings. New World<br />
credits the enhanced menu, new ordering system and the improvement in same-store sales for helping the brand become<br />
more profitable. (Nation’s Restaurant News 12/04/06 p8)<br />
Einstein Bros. Bagels has inked its first franchise deal with MC Squared Investments LLC, which agreed to open 21 outlets in<br />
northern Florida over the next eight years. In other news, Einstein’s is testing an open-faced pizza bagel in 28 Denver stores. It<br />
is promoting its newer sweet and savory bakery items, as well as its frozen coffee drinks and espresso drinks, as options for<br />
afternoon snacks. Last year, the chain debuted bagel pretzels, frozen coffees and fruit drinks as well as a cinnamon twist and<br />
strudels. Einstein Bros. parent company New World Restaurant Group has 598 combined units of Einstein Bros., Noah’s New<br />
York Bagels and Manhattan Bagel. New World reported a combined 4.5% increase in same-store sales for 2006. (NRN Daily<br />
NewsFax 4/20/07; Company Release 4/19/07; Nation’s Restaurant News Online 4/16/07; Foodservice Equipment & Supplies<br />
4/25/07)<br />
Einstein Bros. Bagels is seeking franchisees for Cincinnati and northern Kentucky. The company is capable of opening three–<br />
five locations over the next few years. They will range in size from 2,500–2,700 sq. ft. and each will cost $500,000–$800,000<br />
to build. (News.enquirer.com 8/6/07)<br />
Einstein Bros. Bagels signed a multi-unit development agreement with Philip Enterprises Inc. to open four Einstein Bros.<br />
Bagels units within the next four years in Benton and Washington counties in northwest Arkansas. (Company Release 8/8/07)<br />
Technology |<br />
Einstein Bros. Bagels and Noah’s Bagels are now accepting contactless payment. Customers can now pay by waving their<br />
Visa payWave card, American Express ExpressPay, Discover Network Zip or MasterCard PayPass in front of a card reader.<br />
The cards contain an embedded chip that communicates with the reader through radio frequency to complete transactions.<br />
The chains will also continue to accept traditional credit cards. (Company Release 9/5/07)<br />
Personnel |<br />
Paul Murphy, CEO<br />
Rick Dutkiewlcz, CFO<br />
Charles Stelmokas, V.P. of Purchasing<br />
Dan Dominguez, COO<br />
Chad Tompsom, V.P. of Research & Development<br />
Susan Wong, V.P. of Marketing<br />
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248
News & Other |<br />
Emory University in Atlanta saw sales increase after it added self-service kiosks in its Einstein Bros. Bagels outlets and at The<br />
Depot coffee shop. The university installed the machines for faster service and to create less congestion. Students can order<br />
their meals from a touchscreen and pay with either a credit card or an Emory debit card. The university plans to add kiosks at<br />
more food venues on campus. (Foodservice Director 4/15/07 p8)<br />
East Carolina University in Greenville, NC, has opened an Einstein Bros. Bagels, marking the bagel chain’s 54th college<br />
campus location nationwide. The fast-casual chain operates approximately 600 restaurants in 36 states and the District of<br />
Columbia and plans to open 30–40 additional locations by the end of 2007. (Yahoo! Finance 8/20/07; Company Release<br />
8/20/07)<br />
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249
El Chico Cafe<br />
Headquarters<br />
12200 Stemmons Freeway Suite 100, Dallas, Texas 75234 USA<br />
Tel: (972)241-5500 Fax: (972)888-8198<br />
www.elchico.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 123,500 160,000 160,000<br />
Company-owned ($000) 83,500 115,000 116,000<br />
Franchised ($000) 40,000 45,000 44,000<br />
U.S. Number of Units 69 79 80<br />
Company-owned 45 55 57<br />
Franchised 24 24 23<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,670 1,650 1,650<br />
Concept Positioning |<br />
El Chico Café operates full-service Tex-Mex style restaurants. The chain, owned by Consolidated Restaurant Operations,<br />
operates 69 units in<br />
Alabama, Arkansas, Florida, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee and Texas, 24<br />
of which are franchised.<br />
Units are largely freestanding and average 5, 800 sq. ft. with seating for 200 guests. Exteriors reflect Mexican architecture and<br />
interiors feature painted stucco walls and a separate bar area. Newer prototypes feature offer an enhanced, prominent bar<br />
area as well as patio dining. Takeout and catering services are available.<br />
El Chico Café is an outgrowth of a Mexican restaurant opened by the Cuellar family in the 1940s. In 1967, seven family-owned<br />
restaurants were merged to form the present company. In September 1997, the company agreed to an acquisition bid by a<br />
Dallas investment firm Cracken, Harkey & Co. for some $50 million plus the refinancing of about $15 million in existing debt.<br />
The deal closed the end of 1997. Cracken, Harkey investors include E. Gene Street, founder of Black-eyed Pea, and Clyde E.<br />
Culp III, former president and CEO of Long John Silver’s. The corporate entity is now known as Consolidated Restaurant<br />
Operations, Inc (CRO). CRO also operates a group of restaurants including Casa Rosa, Lucky’s Cafe, Cantina Laredo, Good<br />
Eats, III Forks, Spaghetti Warehouse, and Cool River.<br />
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250
<strong>Menu</strong> Positioning |<br />
El Chico Café is open for lunch and dinner, specializing in Mexican and Tex-Mex selections. It offers appetizers, soups, salads<br />
and sandwiches, but its main draw is the variety of dinner entrées including fajitas, enchiladas, tacos, burritos, chimichangas<br />
and Classic Combos. The chain offers several lunch specials, including its Lunch Taco Salad and Lunch Fajitas. Newer menu<br />
items include Guadalajara Tacos—five corn tortillas with fajita chicken, Monterey Jack cheese, poblano and red bell peppers,<br />
onions, pico de gallo and a side of sour cream; Fiesta Platter—mini beef tacos, cheese sticks, Mexican potato skins, mini<br />
tamales and Buffalo-style chicken fingers with a side of salsa, ranch dressing, sour cream and chili con carne; Yucatan<br />
Salad— tortilla shell filled with tomato basil chips and salad greens with chimichurri sauce, Jack cheese, grilled chicken,<br />
carrots and tomato-avocado salad; and the Chocolate Chimichanga—two flour tortillas filled with semi-sweet chocolate,<br />
topped with cinnamon sugar and drizzled chocolate, served with ice cream, whipped cream and a cherry. The Americano<br />
menu includes four entrées—Grilled Chicken Breast, Cheeseburger, Crispy Chicken Strips and Country Fried Steak. An<br />
extensive liquor menu is available and includes margaritas, sangria, beer and wine. <strong>Menu</strong> prices range from $6.29–$16.99.<br />
Checks average $10.<br />
<strong>Menu</strong> Development |<br />
El Chico Café introduced its new Brisket Tacos and Quesadilla Circulo Salad. The Brisket Tacos feature marinated brisket in a<br />
grilled tortilla with Jack cheese served with fried rice and refried beans. The Quesadilla Circulo Salad features corn, chicken,<br />
tomatoes, black beans, Cheddar and cilantro on greens with sesame-chipotle dressing served with cheese quesadillas.<br />
(Company Website 4/3/07)<br />
El Chico Café debuted three new entrées, including Top Shelf Chile Relleno, poblano pepper stuffed with spicy cascabel<br />
chicken, battered and fried and covered with chipotle mushroom sauce and Jack cheese, paired with diablo corn and frijoles<br />
rancheros ($11.29); BBQ Fajitas, chicken fajitas, chopped brisket and sausage topped with barbecue sauce ($12.99); Asada &<br />
Tamales, steak with chimichurri sauce, poblano peppers and onions, served with two beef tamales and paired with diablo corn<br />
and frijoles rancheros ($11.99); and El Rancho, grilled chicken breast over onions and green peppers finished with pico de<br />
gallo, served with a beef burrito Sonora and a cheese enchilada with sides of refried beans and rice ($10.99). (Company<br />
Website)<br />
Personnel |<br />
Reuben Lozano, Executive Chef<br />
Mark Lamm, President/COO<br />
John Harkey, CEO<br />
Paul Hargett, CFO<br />
Joette Cox, V.P. of Purchasing<br />
Bill Watson, V.P. of Marketing<br />
News & Other |<br />
Consolidated Restaurants Operations Inc., parent company of El Chico's Cafe, has sold portions of its stock. John D. Harkey<br />
Jr., chief executive, now has more than 80% of the company’s shares. (NRN Daily NewsFax 4/9/07)<br />
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published.<br />
251
El Pollo Loco<br />
Headquarters<br />
3535 Harbor Blvd., Mesa, California 92629 USA<br />
Tel: (714)599-5000 Fax:<br />
www.elpolloloco.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 530,000 478,121 428,247<br />
Company-owned ($000) 230,000 221,794 204,820<br />
Franchised ($000) 300,000 256,327 223,427<br />
U.S. Number of Units 358 333 322<br />
Company-owned 151 142 137<br />
Franchised 207 191 185<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,550 1,600 1,500<br />
Concept Positioning |<br />
El Pollo Loco, Spanish for “The Crazy Chicken,” is a quick-service concept specializing in flame-grilled chicken and offering a<br />
wide assortment of signature sides, fresh Mexican entrées, tortillas and fresh salads. Units are open 14 hours daily, with<br />
customer traffic evenly distributed between lunch and dinner. Irvine, CA-based El Pollo Loco operates more than 360<br />
restaurants in California, Arizona, Nevada, Texas, Colorado, Illinois and Connecticut.<br />
The typical unit is 2,500 sq. ft. with seating for 60 guests and a drive-thru window. Wood tabletops, wall murals and<br />
handcrafted tiles create a relaxed atmosphere while rich colors of purple, fuchsia and yellow add to the contemporary décor.<br />
Chicken is grilled over open flames in an exhibition-style area that is in full view of customers. Units also have a salsa bar that<br />
offers a variety of fresh salsas and condiments.<br />
Francisco “Pancho” Ochoa founded El Pollo Loco in 1975 as a roadside grill in Guasave, a small town on Mexico’s Pacific<br />
Coast. The first U.S. restaurant opened in Los Angeles in 1980. In 1987, Advantica Restaurant Group acquired Denny’s and<br />
its operations, including El Pollo Loco. In late 1999, acquisition by American Securities Capital Partners, L.P. took El Pollo<br />
Loco private in a deal worth $128 million. American Securities Capital Partners, L.P agreed to sell El Pollo Loco to Trimaran<br />
Capital Partners, a private asset management firm, for $415 million. The deal was completed in fall 2005. Expansion plans call<br />
for an additional 130 franchised locations by 2009, including new units in the Chicago and Denver markets.<br />
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252
<strong>Menu</strong> Positioning |<br />
El Pollo Loco's menu for lunch and dinner features a selection of chicken meals, burritos, bowls, specialties, tacos sides and<br />
beverages. Its signature item is fresh chicken, marinated in a proprietary blend of herbs, spices and fruit juices and then flamebroiled<br />
over an open grill. Chicken meals range from 2–12 pieces and come with choice of sides, corn or flour tortillas and<br />
fresh salsas. Side dishes include pinto beans, smokey black beans, Spanish rice, mashed potatoes and gravy, fresh<br />
vegetables, macaroni and cheese, coleslaw, fries, corn cobbettes, garden salad and potato salad. Other popular menu items<br />
include made-to-order specialty burritos, such as the Ultimate, Mexican Chicken Caesar and BRC, Pollo Bowls, chicken<br />
nachos, quesadillas and hand-rolled taquitos. Specialties include the Chicken Tostado Salad—chicken, lettuce, pinto beans,<br />
cheese and sour cream in a flour tortilla shell; and the Taco Al Carbon—chicken, cilantro and onion in two corn tortillas. Due to<br />
an increased focus on health-conscious fare, the concept now offers trans fat-free tortillas in all of its restaurants. In addition,<br />
chicken tortilla soup, a low fat, low-calorie item, debuted on the menu in 2005. In 2006, the chain expanded its dollar menu by<br />
adding the $1 Loco Salad and the $1 Chicken Taquito with avocado salsa. Grilled Chicken Nachos were also added, featuring<br />
citrus-marinated, flame-grilled chicken breast strips over tortilla chips with Jack and Cheddar cheeses, poblano queso sauce,<br />
refried beans, salsa, sliced jalapeños and guacamole. Some units feature Foster Freeze soft-service ice cream and ice cream<br />
desserts. A kids’ menu is available. No alcohol is served. <strong>Menu</strong> prices range from $1.00–$20.99. Checks average $8.28.<br />
Expansion Plans |<br />
Bojangles Famous Chicken and Biscuits and El Pollo Loco Inc. will expand their presence in the Atlanta market to more than<br />
130 units. Bojangles will open 15 more of its units in the metro Atlanta area during the next three years. The new locations are<br />
slated for Atlanta, Buford, Conyers, Newnana, Rockmart and Statesboro and are part of a greater expansion plan that will<br />
bring more than 80 new units to Georgia’s major cities over the next five years. Locations for El Pollo Loco are currently under<br />
construction in Gainesville, Marietta, Lithia Springs, Roswell, Chamblee and Lithonia. In addition, El Pollo Loco has other<br />
franchise commitments in Arizona, California, Florida, Illinois, Missouri, North Carolina, New York, New Jersey, New England,<br />
Oregon, South Carolina, Utah, Virginia and Washington. El Pollo Loco’s franchise commitments are part of a plan to open 50<br />
units in metro Atlanta within the next six years. (Qsrmagazine.com 9/7/07)<br />
Promotion Plans |<br />
El Pollo Loco will be on the January 28 episode of “The Apprentice: Los Angeles.” The two competing teams will create,<br />
market and sell their own version of the restaurant’s Pollo Bowl. (NRN Daily NewsFax 1/10/07)<br />
<strong>Menu</strong> Development |<br />
El Pollo Loco has expanded its Party in a Box offerings to include not only the signature chicken and a choice of sides but also<br />
mixing in burritos, tacos, salads and other menu items to the box. The chain is also allowing customers more flexibility in the<br />
size, including orders smaller or larger than 25 people. (Nation’s Restaurant News 11/06/06)<br />
El Pollo Loco brought Chicken Tamales back to the menu for a limited time. The item can be purchased individually or in<br />
quantities of six. (Company Website)<br />
El Pollo Loco reintroduced its BBQ Black Beans. The beans have been reformulated to be trans-fat-free. They are featured as<br />
a side dish and as an ingredient in two new entrées: the BBQ Black Bean Pollo Bowl, citrus-marinated, flame-grilled chicken<br />
breast with Spanish rice, BBQ Black Beans, cilantro, onion and pico de gallo salsa, and the BBQ Black Bean Classic Chicken<br />
Burrito, flame-grilled, citrus-marinated chicken, Jack and Cheddar cheeses, Spanish rice and BBQ Black Beans in a flour<br />
tortilla. The entrées can be combined with any of the restaurant’s salsas. The beans were taken off the menu in 2005 so they<br />
could be reformulated to have no saturated fat and no trans fat. In addition, the restaurant is offering 25¢ large sides with any<br />
family meal purchase. Customers can choose from pinto beans, Spanish rice, BBQ Black Beans, corn cobbettes, cole slaw,<br />
macaroni and cheese, mashed potatoes and gravy, fresh vegetables and garden salad. The offer is available until June 3.<br />
(Company Website 4/16/07)<br />
El Pollo Loco debuted several new barbecue entrées for a limited time. Offerings include Barbecue Chicken, flame-grilled<br />
chicken covered in a smoky chipotle sauce; BBQ Ranch Tostada Salad, flame-grilled chicken breast over romaine lettuce,<br />
BBQ black beans, corn poblano, crunchy tortilla strips, chopped cilantro, Cotija cheese, ranch dressing and barbecue sauce<br />
served in a tortilla bowl; and Barbecue Chicken Grilled Quesadilla, flame-grilled chicken, melted Jack and Cheddar cheeses,<br />
corn poblano, chopped cilantro and BBQ sauce, served in a flour tortilla. (Company Release 6/04/07)<br />
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published.<br />
253
El Pollo Loco added hard-shell tacos as well as an improved soft taco to its menu. The crunchy tacos are topped with lettuce<br />
and shredded cheese. The new soft tacos feature a warm flour tortilla filled with lettuce, shredded cheese, sour cream,<br />
cilantro, cotija cheese and pico de gallo. Both versions sell for $1.69 and contain the brand’s signature citrus-marinated, flamegrilled<br />
chicken. (Nation’s Restaurant News Online 8/6/07)<br />
Franchise Activity |<br />
El Pollo Loco plans to open 61 units in Missouri, Georgia, Virginia, Arizona and Utah. The new locations will be developed<br />
under a series of multi-unit development agreements. (Company Web Site 11/9/06)<br />
El Pollo Loco has signed development deals with franchisees to open units in Albuquerque, NM. El Pollo Loco franchisee,<br />
WKS Restaurant Corp., will open its first location in a former Krispy Kreme location. Four or five locations are planned for the<br />
city. (Bizjournals.com 4/30/07)<br />
Personnel |<br />
Stephen Carley, CEO<br />
Joesep Stein, CFO<br />
Stephen Sather, V.P. of Operations<br />
Mark Hardison, V.P. of Marketing<br />
Brian Berkhause, V.P. of Development<br />
El Pollo Loco promoted John Phillips to Vice President of the Franchise Restaurant Opening Group; Mark Hardison to Vice<br />
President of Marketing; Julie Weeks to Vice President of Communications; Mark Landouw to Director of Operations Services;<br />
and Patsy Estis to Vice President of Human Resources. Previously, all were part of the company’s management team. All<br />
have key roles in the company’s national expansion plan. Phillips will be in charge of a strategic program that supports new<br />
franchisees throughout the expansion process, Hardison will lead development and implementation of the company’s<br />
marketing strategy, Weeks will oversee corporate communications and will market the company when it expands into new<br />
markets, Estis will execute the company’s business plans and oversee human resources programs, and Landouw will promote<br />
communication between the company and its restaurants. (Qsrmagazine.com 4/30/07)<br />
News & Other |<br />
El Pollo Loco Inc. reported for the fourth quarter ended December 27, a net loss of $1.2 million versus a loss of $15.4 million<br />
for the same period last year. Revenues increased 7.9% to $64.6 million. Same-store sales grew 2.3%. For the year, net<br />
earnings rose to $6 million versus a loss of $11.8 million for 2005. Revenues increased 9.6% to $259.9 million. Same-store<br />
sales grew 5.3%. (NRN Daily NewsFax 3/23/07)<br />
El Pollo Loco Inc. would be required to pay damages of $22 million to Juan Francisco Ochoa, founder of the chain, based on a<br />
verdict reached by a jury in U.S. District Court in Laredo, TX. Ochoa had alleged that the company failed to develop units in<br />
Mexico according to contract. The final judgment is pending, and both parties have until August 9 to file post-trial motions that<br />
could change the outcome. (NRN Daily NewsFax 8/2/07)<br />
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254
El Torito<br />
Headquarters<br />
5660 Katella Avenue, Cypress, California 90630 USA<br />
Tel: (562)346-1200 Fax: (562)346-1463<br />
www.eltorito.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 210,000 198,905 183,750<br />
Company-owned ($000) 210,000 198,905 183,750<br />
Franchised ($000) - - -<br />
U.S. Number of Units 79 76 74<br />
Company-owned 79 76 74<br />
Franchised - - -<br />
International Sales ($000) - 25,000 20,000<br />
International Units - 10 9<br />
Average Sales/Unit ($000) 2,900 2,925 2,460<br />
Concept Positioning |<br />
El Torito is a chain of full-service restaurants specializing in providing an authentic Mexican dining experience—from baskets<br />
of colorful, warm tortilla chips, to made-from-scratch sizzling fajitas, to their frosty house Margaritas. The chain is owned by<br />
Real Mex Restaurants and operates 79 company-owned locations in Arizona, California and Oregon.<br />
Units are generally freestanding located in high-traffic areas and average 7,500–11,000 sq. ft. They feature hacienda-style<br />
architecture with stucco walls, fountains, arches, tropical plants, murals, pottery and sculptures.<br />
El Torito first opened in Encino, CA, in 1954 by Larry J. Cano. Through the years, the chain has had several ownerships with<br />
the latest dating back to the mid-1990’s and the formation of the Family Restaurants, Inc. which merged in late 1998 with Koo<br />
Koo Roo to form Prandium, Inc. In 2000, Prandium announced its intent to sell all but six of its El Torito operations to Acapulco<br />
Acquisition Corp., an investment arm of Bruckmann, Fosser, Sherill & Co. for some $130 million. The deal closed mid-2000.<br />
The chain operates under the name El Torito Restaurants Inc. Currently, there are no major expansion plans for the chain.<br />
<strong>Menu</strong> Positioning |<br />
El Torito is open for lunch, dinner and Sunday brunch and offers a broad selection of Mexican specialties and traditional<br />
dishes such as fajitas, tacos, enchiladas, tamales, nachos, guacamole, soups, salads, side dishes and desserts. Its "Fresh<br />
Sheet" section lists seasonal specials that change monthly. The chain also is developing a growing selection of low-fat or<br />
lower-fat entrées such as Grilled Chicken Quesadillas with reduced-fat Monterey Jack cheese. Other health-conscious choices<br />
are Halibut Tacos and Linguine with Fire-Roasted Tomato Sauce. Popular menu items include Carnitas Yucatan—roasted<br />
marinated pork topped with red onions marinated in habañero chilies and lime juice, served with red and black beans, rice,<br />
avocado relish and corn cakes; Black Pepper Tamarind Barbeque Shrimp—sautéed shrimp, red and black beans, rice and<br />
crispy plantains; Fire-Roasted Vegetables—fresh fire-roasted vegetables seasoned and drizzled with raspberry tamarind<br />
vinaigrette and goat cheese; and the Mesquite-Grilled Chicken Breast Fajitas—grilled chicken breast marinated with citruschipotle<br />
sauce and served with onions, pasilla, red bell peppers, red and black beans, avocado relish, pico de gallo and<br />
tortillas. Guacamole, Lobster Quesadillas, Fire-Roasted Tomato Soup and the Fajita Salad are among the restaurant’s favorite<br />
appetizers, soups and salads. Restaurants also offer party platters that serve groups of five or more. Kids’ and takeout menus<br />
are available. <strong>Menu</strong> prices range from $8.99–$16.99. Checks average $11.<br />
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255
Expansion Plans |<br />
El Torito Grill plans to open a restaurant in Indianapolis, its first outside of Southern California. The new location creates a<br />
unique dining environment with traditional Mexican touches such as arched walls and wrought iron. (Company Release<br />
12/15/06)<br />
<strong>Menu</strong> Development |<br />
Latin American flavors continue to inspire American menus. At El Torito locations, guests can dine on Sopa Poblana, which<br />
combines onions, fresh corn, garlic and mild Poblano chiles with queso fresco, crisp tortilla chips, cotija cheese and roasted<br />
pasilla chilies, paired with a Mexican Caesar salad. Students at Franklin & Marshall College in Lancaster, PA, are offered<br />
Calimex, consisting of grilled chicken with ancho-chile salsa, melted Jack cheese, rice, pinto or black beans, fresh guacamole<br />
and pico de gallo. Tutto Bene Italian Restaurant & Grill in Arlington, VA, menus Saltenas de Carne, a beef or chicken turnover<br />
with peas, diced potatoes, hard-cooked eggs and raisins in a Bolivian spiced broth. At 51 Lincoln in Newton Highlands, MA,<br />
patrons can try a pan-seared watermelon “steak” with confit tomatoes and eggplant “chicharrones.” (Restaurants & Institutions<br />
p4 3/07)<br />
Tableside preparation is a unique way to introduce menu additions. Theatrical, customer-friendly presentations are increasing<br />
at both major chains and independents, encouraging a more interactive experience among diners, servers and chefs. At The<br />
Willard Room, a fine-dining concept in Washington, D.C., guests are treated to tableside preparation of salads, smoked<br />
organic salmon with capers, egg and blinis right in front of the customer before serving. Cherries Jubilee and Bananas Foster<br />
are flambéed tableside for dessert. At El Torito and El Torito Grill, guacamole is mixed at the table. Romano’s Macaroni Grill is<br />
promoting two new dishes with table service included. Its two new linguine dishes, Sizzling Shrimp Scampi and Sizzling<br />
Tuscan Chicken, feature hot garlic-white wine sauces that servers pour directly out of hot sauté pans at the table. (Nation’s<br />
Restaurant News 7/23/07)<br />
Personnel |<br />
Peter Serantoni, V.P. of <strong>Menu</strong> Development<br />
Frederick Wolfe, CEO<br />
Steven Tanner, CFO<br />
Carlos Angulo, V.P. of Purchasing<br />
Charles Rink, COO<br />
Julie Koenig, V.P. of Marketing<br />
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published.<br />
256
Elephant Bar Restaurant<br />
Headquarters<br />
14241 Firestone Blvd. Suite 315, La Mirada, California 90638 USA<br />
Tel: (562)207-6200 Fax: (562)207-6290<br />
www.elephantbar.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 168,000 137,500 128,000<br />
Company-owned ($000) 168,000 137,500 128,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 41 35 32<br />
Company-owned 41 35 32<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,500 4,100 4,000<br />
Concept Positioning |<br />
A full-service concept serving up “elephant-sized” portions, safari-themed Elephant Bar Restaurant specializes in Asian and<br />
Polynesian-influenced entrées that are made from scratch. From USDA choice beef, fresh seafood and chicken, to hand-cut<br />
vegetables, fruits and homemade marinades and sauces, Executive Chef/Partner Reinhard Dorfhuber and his staff pride<br />
themselves on creating a wide variety of eclectic dishes using only the freshest ingredients. S.B. Restaurant Co. is the parent<br />
company of the 30-unit Elephant Bar chain.<br />
Units are large and freestanding. Elephant Bar’s atmosphere is relaxed and casual, yet exudes a flair for the exotic, in keeping<br />
with their slogan “A Dining Adventure”. Animal print designs adorn the exterior of the restaurants, as well as the interior walls<br />
and ceiling. Each unit features a spacious circular bar area, accented by tropical foliage.<br />
Founded by David Nancarrow in the 1980s, California-based S.B. Restaurant Co. now owns and operates the Elephant Bar<br />
chain. Chris Nancarrow is the current president of SB Restaurant Co., and is backed by investment group Saunders Karp &<br />
Megrue.<br />
<strong>Menu</strong> Positioning |<br />
Elephant Bar Restaurant specializes in Asian/Polynesian-influenced entrées, regional favorites, seafood, sandwiches, soups<br />
and salads, pasta dishes and wood-fired pizzas for lunch and dinner. Popular choices include the Quick Fried Soy Ginger<br />
Calamari appetizer, Pan-Pacific selection MisoYaki Pork Loin Steak and the Fire-Grilled Mahi Mahi Sandwich. Full liquor<br />
service is available. Elephant Bar also offers several desserts, including Ice Cream Mud Pie, Fudge Fudge Walnut Brownie<br />
and Chocolate Molten Lava Cake. A kids' menu is available. Prices range from $1.75–$17.25. Checks average $14.05.<br />
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published.<br />
257
<strong>Menu</strong> Development |<br />
Elephant Bar Restaurant added a new appetizer, Wok Seared Vegetable Lettuce Wrap ($5.95). The item features a medley of<br />
vegetables, mushrooms, tofu and water chestnuts stir-fried in oyster sauce, topped with green onions and roasted Spanish<br />
peanuts, served with marinated cucumbers, tropical mango salsa and tamarind macadamia nut sauce. (Company Website<br />
4/4/07)<br />
Elephant Bar Restaurant added two new beverages, Olu Passion Mai Tai ($5.95) and Ultra Premium Ivory Coast Margarita<br />
($8.95). The Olu Passion Mai Tai features light rum, pineapple juice, passion fruit purée, Rose’s lime juice and orange<br />
Curaçao, served on ice and topped with a layer of grenadine, a float of dark rum and a pineapple spearand-cherry garnish.<br />
The Ultra Premium Ivory Coast Margarita includes muddled fresh orange and lime slices mixed with Patrón Silver tequila and<br />
reserve Patrón Citronage orange liqueur. (Company Website)<br />
Elephant Bar Restaurant added several new entrées to the menu. New selections include: • Char Siu BBQ Wok-Fried Beef<br />
Ribs—tender beef ribs wok-fried in Chinese Char Siu BBQ sauce and served with steamed white rice and luau vegetables<br />
($11.95) • Macadamia Nut Chicken Breast with Grilled Shrimp Skewer—fire-grilled chicken breast with roasted macadamia nut<br />
beurre blanc sauce and sweet shrimp, paired with steamed white rice and luau vegetables ($12.95) • Shrimp & Chicken<br />
FirePot—large shrimp, chicken, onions, peppers and corn served in cast-iron firepot with a Pacific Rim sauce of tomatoes,<br />
ginger, Thai basil and Japones chilies, topped with sesame seeds and green onions, paired with a side of steamed white rice<br />
and a crisp fried wonton ($11.95) • Macadamia Nut Crusted Mahi Mahi—fillet hand-breaded with macadamia-nut crust,<br />
sautéed and served over steamed white rice and water chestnuts and topped with roasted macadamia nut • Beurre Blanc,<br />
tropical mango salsa and house-made tamarind sauce ($12.95). (Company Website)<br />
Personnel |<br />
Reinhard Dorfhuber, Executive Chef<br />
Liz Geavaras, Director of Marketing<br />
Robert Holden, CEO<br />
Paul Potvin, CFO<br />
Ellen Sasaba, V.P. of Purchasing<br />
Mike Foster, V.P. of Operations<br />
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published.<br />
258
ESPN Zone<br />
Headquarters<br />
500 South Buena Vista St., Burbank, California 91521 USA<br />
Tel: (818)560-1000 Fax: (818)560-1930<br />
www.espnzone.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 104,000 100,000 99,000<br />
Company-owned ($000) 104,000 100,000 99,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 8 8 8<br />
Company-owned 8 8 8<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 13,000 12,500 12,375<br />
Concept Positioning |<br />
With 65,000 feet of video cable, 220 video monitors and 40 satellite receivers, full-service ESPN Zone is a sports fan’s mecca.<br />
Its menu is a combination of American comfort foods and upscale bar fare—from appetizers and salads, to sandwiches, pasta<br />
and burgers. ESPN Zone is a national chain, with eight locations in major cities, including New York City, Chicago and Las<br />
Vegas. All units are owned and operated by parent company Disney Regional Entertainment, a division of The Walt Disney<br />
Company.<br />
Units range in size from 33,000–41,000 sq. ft. To ensure customers do not miss a play, television monitors tuned to sporting<br />
events hang from the ceiling throughout the facility, including in the restrooms. There are three main components to every<br />
ESPN Zone: the multi-monitor Screening Room; the 500-seat Studio Grill where live broadcasts of ESPN shows are taped;<br />
and the game area called the Sports Arena. The Screening Room features a 16 x 13-ft. video monitor surrounded by 37-inch<br />
monitors, giving customers the opportunity to watch any game on the air. Selected booths also offer video touch screens and a<br />
video wall featuring statistical updates every minute, as well as the latest scores and sports trivia. A row of leather recliners,<br />
called “Zone Thrones,” with individual audio controls line the front of the room. The Sports Arena contains 10,000 sq. ft. of<br />
game challenges, including proprietary interactive attractions based on ESPN programming, and has a full-service bar called<br />
The 19th Hole. Intermingled with all of the TV monitors are original pieces of sports-themed art created by local regional<br />
artists. Private event rooms called “Skyboxes” are also available for rent. Units also feature Zone Stuff, a retail shop that sells<br />
ESPN souvenirs, from golf balls to apparel.<br />
As part of an initiative to create regional entertainment concepts that are not located near its theme parks, Walt Disney Co.’s<br />
Disney Regional Entertainment created the first ESPN Zone restaurant in Baltimore in 1998. Additional units followed in<br />
Anaheim, CA, Atlanta, Chicago, Denver, Las Vegas, New York City and Washington, D.C. A new Los Angeles site is under<br />
construction and will be built in the Los Angeles Sports & Entertainment District adjacent to the Staples Center. Another new<br />
unit is planned for Hartford, CT. Both units are scheduled to debut by the end of 2008. At this time, ESPN Zone has no<br />
international units and has no plans to begin a franchising program. Long-range expansion plans have not been disclosed.<br />
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published.<br />
259
<strong>Menu</strong> Positioning |<br />
The menu at ESPN Zone features appetizers, salads, sandwiches, entrées, desserts and beverages for lunch and dinner.<br />
Signature items include: Ultimate Tailgate—variety of appetizers including Sirloin Chili and Chips, Buffalo and BBQ Wings,<br />
Sliders, Chicken Tenders and Creamy Spinach & Artichoke Dip; Shrimp Caesar Salad—shrimp, romaine lettuce, croutons,<br />
Parmesan cheese and Caesar dressing; Buffalo Chicken Sandwich—chicken marinated in homemade buffalo sauce and<br />
topped with bleu cheese crumbles; Baby Back Back Back Back Ribs—a full slab of slow-roasted ribs that are basted with<br />
barbecue sauce and served with French fries; and the Rum Carrot Cake—with rum caramel sauce and sweet cream cheese<br />
icing. Other popular menu items include Shrimp Scampi & Penne, Grilled Salmon, New York Strip, ESPN Burger and<br />
Barbecued Mahi Sandwich. A wide variety of domestic and premium beers and wines are available. A kids’ menu is listed,<br />
featuring favorites like hot dogs, burgers, chicken tenders and macaroni & cheese. <strong>Menu</strong> prices range from $1.99–$32.99.<br />
Checks average $20.<br />
Personnel |<br />
Christine Driessen, CFO<br />
Artie Bulgrin, V.P. of Research & Development<br />
George Bodenheimer, President<br />
Sean Bratches, V.P. of Marketing<br />
Keith Landry, General Buyer<br />
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published.<br />
260
Famous Dave's<br />
Headquarters<br />
12701 Whitewater Drive Suite 200, Minnetonka, Minnesota 55343 USA<br />
Tel: (952)294-1300 Fax: (952)294-1301<br />
www.famousdaves.com<br />
Ownership: Public<br />
Segment: Full Service BBQ<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 378,000 269,248 224,176<br />
Company-owned ($000) 100,000 89,248 89,176<br />
Franchised ($000) 278,000 180,000 135,000<br />
U.S. Number of Units 145 126 104<br />
Company-owned 41 38 38<br />
Franchised 104 88 66<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,490 2,349 2,300<br />
Concept Positioning |<br />
Famous Dave's has positioned itself as a full-service barbecue “shack” complete with a down-home backyard barbecue menu<br />
and a Southern feel. Famous Dave’s is owned by Famous Dave’s of America Inc. which operates 145 units across the U.S.<br />
Only 41 locations are company-owned.<br />
Units are largely freestanding and follow one of three casual formats. The "Northwoods" style lodge seats 150–260 guests in<br />
its 4,300–7,200 sq. ft. The interior features red-and-white checked tablecloths, weathered barnwood walls, a tin ceiling and<br />
abundant use of rustic '30s and '40s Americana antiques. The "shack" prototype is 2,900 sq. ft. and seats 60. The Blues Club<br />
format features nightly musical entertainment in a Chicago blues-club setting. Its 10,500 sq. ft. seats 250 customers. The chain<br />
also offers takeout and catering.<br />
Famous Dave’s was founded in 1994 in Hayward, WI, by Dave Anderson, who is also co-founder of Grand Casinos, Inc. He<br />
later opened two more units in Minneapolis. In 1996, the company went public. In 1997, a franchising program was started. In<br />
1999, Famous Dave’s completed a sale-leaseback arrangement for three of its restaurants with Franchise Finance Corp. of<br />
America, a national real-estate investment trust. In 2000, the company announced its acquisition of four Red River Barbeque &<br />
Grille sites. Other acquisitions in recent years include two steakhouse units from Timber Lodge Steakhouse, two Hunters<br />
Restaurant & Pub sites and four units of K.C. Masterpiece Barbecue & Grill. Current plans call for the development of more<br />
franchised units.<br />
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261
<strong>Menu</strong> Positioning |<br />
Famous Dave's is open for lunch and dinner and features appetizers, homemade soups, salads, classics, combos, ribs,<br />
sandwiches, chicken and burgers, lunch specials, sides, desserts and beverages. Its signature item is its hickory-smoked ribs<br />
with a choice of five barbecue sauces: Rich & Sassy, Texas Pit, Georgia Mustard, Hot Stuff & Devil’s Spit. Other popular menu<br />
items include Sweetwater Catfish—eight strips of catfish, lightly breaded with Cajun seasoning and served with Sweet Soul<br />
Jalapeño and Remoulade sauce; Texas Beef Brisket—tender brisket, hickory smoked and hand-trimmed; Georgia Chopped<br />
Pork—pork deeply seasoned with rib rub and BBQ sauce; Texas Manhandler—beef brisket and zesty hot link sausage with<br />
Hell Fire pickle chips; and the Devil’s Spit Burger—burger with Devil’s Spit BBQ sauce, pepper Jack cheese, jalapeño bacon<br />
and Hell Fire pickle chips. Entrées come with cornbread muffin, corn on the cob and choice of two sides: coleslaw, Drunkin’<br />
Apples, Wilbur Beans, fries or potato salad. Desserts include bread pudding and hot fudge brownie. <strong>Menu</strong> also features family<br />
to-go portions. Kids' menu is also available. <strong>Menu</strong> prices range from $4.99–$29.99. Checks average $17.<br />
Franchise Activity |<br />
Famous Dave’s entered into a franchise agreement with Famous Bar-B-Que LLC calling for five restaurants in Arkansas. The<br />
franchise agreement gives Pat C. Boyd rights to open four units in the State of Arkansas and Bowie County, TX, and<br />
ownership of a Famous Dave’s location in Rogers, AR. (Company Release 6/5/07)<br />
Famous Dave’s of America Inc. has sold the right to franchise seven Famous Dave’s Legendary Pit Bar-B-Que restaurants in<br />
New York City to Famous New York Barbeque, LLC. Markets covered in the agreement include the five boroughs of New York<br />
City plus Westchester County, NY. (Famous Dave’s of America Inc. Press Release 10/31/07)<br />
International Activities |<br />
Famous Dave’s of America Inc. signed a deal with Jorge Colon-Gerena to open four outlets in Puerto Rico. These will be the<br />
first Famous Dave’s units outside of the mainland U.S. There are 145 Famous Dave’s restaurants in 35 states. (Company<br />
Release 2/01/07)<br />
Personnel |<br />
David Goronkin, CEO<br />
Diana Purcel, CFO<br />
Corrie Krasnicka, V.P. of Purchasing<br />
Glenn Drasher, V.P. of Marketing<br />
Judy Koehn, Director of R&D<br />
Famous Dave’s of America promoted Joleen Flory-Lundgren to executive vice president, human resources and training, and<br />
Christopher O’Donnell to chief operating officer. Previously, Flory-Lundgren served as vice president, human resources and<br />
training and O’Donnell served as executive vice president of operations. (Company Release 1/3/07)<br />
News & Other |<br />
Famous Dave’s of America Inc. reported for the third quarter ended October 1 net earnings rose 33.3% to $1.6 million from<br />
$1.2 million for the same period last year. Revenues increased 17.3% to $30.8 million from $26.3 million. Same-store sales<br />
grew 3.1%. (Company Release 11/1/06)<br />
Famous Dave’s of America Inc. reported for the fourth quarter ended December 31, net earnings increased to $1.1 million<br />
from $784,000 for the same period last year. Revenues rose 12.5% to $2.7 million from $2.4 million. Same-store sales grew<br />
1.8%. For the year ended December 31 net earnings increased 11.3% to $4.9 million from $4.4 million for the same period last<br />
year. Revenues grew 13.9% to $116.6 million from $102.3 million. Same-store sales rose 2.9%. (Company Release 2/28/07)<br />
Famous Dave’s reported for the first quarter ended April 1 net earnings increased to $1.3 million from $742,000 for the same<br />
period last year. Revenues grew 7.1% to $29 million from $27.1 million. Same-store sales fell 0.9%. (Company Release<br />
4/25/07)<br />
Famous Dave’s of America Inc. reported for the second quarter ended July 1 net earnings increased 40.0% to $2.1 million<br />
from $1.5 million for the same period last year. Revenues rose 9.1% to $33.5 million from $30.7 million. Same-store sales<br />
grew 3.5%. (Company Release 8/1/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
262
Farmer Boys<br />
Headquarters<br />
3452 University Avenue, Riverside, California 92501 USA<br />
Tel: (951)275-9900 Fax: (951)275-9930<br />
www.farmerboys.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 79,500 69,500 56,000<br />
Company-owned ($000) 19,500 16,000 18,000<br />
Franchised ($000) 60,000 53,500 38,000<br />
U.S. Number of Units 55 50 45<br />
Company-owned 15 10 11<br />
Franchised 40 40 34<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,500 1,450 1,425<br />
Concept Positioning |<br />
Farmer Boys is a limited-service, quick casual restaurant chain promising “Fresh Food…Fast." The restaurant strives to offer<br />
the variety, service and atmosphere of a full-service restaurant while providing the convenience of a fast-food outlet. The menu<br />
features a classic menu of breakfast, appetizers and entrees. Farmer Boys is the privately held owner of the chain and<br />
operates a mix of both franchised and company-owned units. Farmer Boys has nearly 60 locations throughout Southern<br />
California, 75% of which are franchised<br />
Units are large and freestanding and feature drive-thru service. Upon entering a Farmer Boys unit, guests step up to a service<br />
counter and place their order before seating themselves. Within five to seven minutes, the order is brought directly to their<br />
table. All Farmer Boys occupy up to 3,000–3,200 sq. ft. of space, are open daily for breakfast, lunch and dinner, and offer<br />
customers the option of phoning in their orders for pickup and takeout—a service especially popular with its lunch crowd.<br />
Company president Demetris Havadjis and his brothers opened the first Farmer Boys restaurant in Perris, CA, in 1981. By<br />
1997, the concept had grown throughout Southern California. Franchising began in 1998, and will continue to fuel growth for<br />
the chain.<br />
<strong>Menu</strong> Positioning |<br />
Farmer Boys' menu offers over 65 items for breakfast, lunch and dinner. Options for breakfast include hotcake plates, 3 Egg<br />
Breakfasts, various omelets, breakfast sandwiches and breakfast burritos. Recent menu additions include its Farmer’s Go<br />
Bowls, which include The Farmhand Bowl and The Sausage, Biscuit and Gravy Bowl. Appetizers feature salads, soup and<br />
chili. Lunch and dinner items include chili, salads, burgers, sandwiches, melts, burritos and dinner plates, as well as the<br />
Alaskan Pollock Fish. Signature items include Tuna Salad, Bacon Cheeseburger, Harvest Turkey or Ham sandwiches, Patty<br />
Melt and Golden Fried Shrimp dinner plate. Three made-to-order chicken salads were recently introduced: Farmer’s Chopped<br />
Cobb, BBQ Ranch and Crispy Chicken Tenderloin salads. Side items include Chili Cheese Fries, Crispy Zucchini, and Giant<br />
Onion Rings. Available beverages are soda, milk, juice, coffee and hot tea. Shakes are also featured, in vanilla, chocolate,<br />
strawberry and pineapple flavors. A “Little Farmhand” kids’ menu is also available and features hot cakes, burgers, chicken<br />
strips and hot dogs. <strong>Menu</strong> prices range from $2.29–$7.49. Checks average $8.77.<br />
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published.<br />
263
<strong>Menu</strong> Development |<br />
Farmer Boys launched three freshly prepared chicken salads. Selections include: • Farmer’s Chopped Cobb—green leaf and<br />
iceberg lettuce with carrots, cabbage, grilled chicken breast, avocado, hickory-smoked bacon, freshly made salsa, sliced hardboiled<br />
egg and Cheddar cheese • Chicken BBQ Ranch—green leaf and iceberg lettuce with cabbage, carrots, crispy chicken<br />
tenderloins, diced tomatoes and hickory-smoked bacon, topped with barbecue sauce, ranch dressing and crispy onion straws •<br />
Crispy Chicken Tenderloin—green leaf and iceberg lettuce with diced tomatoes, cabbage, carrots, sliced hard-boiled egg and<br />
crispy chicken tenderloins (Company Website)<br />
Personnel |<br />
Ken Clark, COO/President<br />
Elizabeth Santiago, Controller<br />
Demetris Havadjias, CEO<br />
Melanie Bruno-Carbone, V.P. of Marketing<br />
News & Other |<br />
Farmer Boys is switching to trans fat-free cooking oils. The chain plans to rollout the new frying oils by the beginning of 2008.<br />
(Food-business-review.com 11/20/07)<br />
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published.<br />
264
Fatburger<br />
Headquarters<br />
301 Arizona Avenue Ste. 200, Santa Monica, California 90401 USA<br />
Tel: (310)319-1850 Fax: (310)319-1863<br />
www.fatburger.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 63,705 54,000 39,000<br />
Company-owned ($000) 29,912 22,000 21,000<br />
Franchised ($000) 33,793 32,000 18,000<br />
U.S. Number of Units 86 79 60<br />
Company-owned 35 27 27<br />
Franchised 51 52 33<br />
International Sales ($000) 2,666 - -<br />
International Units 3 - -<br />
Average Sales/Unit ($000) 750 750 735<br />
Concept Positioning |<br />
Fatburger is a chain of limited-service, takeout and sit-down hamburger restaurants with an atmosphere that mimics that of a<br />
50s-style diner. The restaurant serves cooked-to-order burgers at an open grill and also specializes in grilled chicken breast<br />
sandwiches, freshly made onion rings and real milkshakes, all with fresh ingredients that are never frozen. The chain has built<br />
its reputation around being a Southern California institution and a popular hangout for professional athletes and music<br />
celebrities. Fog Cutter Capital Group owns 80% of the chain, while a management group led by CEO Keith Warlick also holds<br />
a stake. Fatburger is 60% franchised and is an international chain.<br />
Located primarily in Southern California, here are about 60 total freestanding and storefront units. Units range from 1,800–<br />
2,000 sq. ft. with seating for 150 customers. Interiors feature a rhythm-and-blues theme complete with photos on the wall and<br />
jazz and classic soul music selections in the jukebox. Units are open daily for lunch and dinner.<br />
Fatburger was founded by Lovie Yancey who opened her first restaurant in Los Angeles in 1952 when "fat" was often used as<br />
slang for "good." In 1980, the company started franchising. With the goal of expanding Fatburger throughout the world, the<br />
Fatburger Corporation purchased the business from Yancey in 1990. Since 2003, the company has been owned by CEO Keith<br />
Warlick and backed by Fog Cutter Capital Group. The company is currently in the process of nationwide and international<br />
expansion.<br />
<strong>Menu</strong> Positioning |<br />
Fatburger offers a single menu for lunch and dinner and is known for its signature grilled or charbroiled ½-pound and thirdpound<br />
hamburgers. Other popular menu items include turkey burgers, grilled chicken sandwiches and chili dogs. Fatburger<br />
also offers a variety of side orders such as onion rings, hand-scooped ice cream milkshakes, housemade chili and french fries<br />
cooked in 100%-cholesterol-free oil. Diners can also customize burgers by doubling portions, adding cheese, fried egg, bacon<br />
or chili. The Big Fat Deal section of the menu lists Fatburger’s various meal combos that include the Fatburgers or turkey<br />
burgers with fries and a regular-sized soft drink or lemonade for $6.49. The meal deals include the Fat Deal, Baby Fat Deal,<br />
Turkey Deal, Chicken Deal, King Deal and Ultimate Big Fat Deal, with onion rings and choice of milkshake. Beverages include<br />
sodas, freshly squeezed lemonade, iced tea, milk and bottled water. No alcohol is served. <strong>Menu</strong> prices range from $2.99–<br />
$8.59. Checks average $12.50.<br />
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265
Expansion Plans |<br />
Fatburger opened its new restaurant in Naples, FL, on December 11. The new restaurant is the company’s second location in<br />
Florida. (Company Web site 12/19/06)<br />
Fatburger Inc. will open 10 stores in Atlanta in the next two years. The chain currently has one location in the area and<br />
believes that it could possibly build more units there. (Bizjournals.com 6/15/07)<br />
Fatburger and music performer Kanye West are continuing with plans to open a Chicago-area chain of restaurants, despite the<br />
recent death of West’s mother, Donda. West is among a group of celebrities and athletes, including Queen Latifah, Montel<br />
Williams and the Cincinnati Bengals’ Willie Anderson, who are partnering with Fatburger to open restaurants. (Suntimes.com<br />
11/27/07)<br />
Promotion Plans |<br />
Fatburger has announced its holiday promotions. For a limited time, the chain will be serving a Cookies & Ice Cream Shake,<br />
made with Oreo cookies and hand-scooped ice cream topped with whipped cream. The company will also be offering a free<br />
Fatburger for every $15 worth of Big Fat Card gift cards purchased. The promotions are set to run through January 6. (Yahoo!<br />
Finance 11/19/07)<br />
<strong>Menu</strong> Development |<br />
Fatburger is now trans-fat free. The chain began eliminating trans-fat from its products January 1 and will be switching to<br />
trans-fat free oils in all of its locations. A soy bean-based oil will be used to prepare fried foods. (Foodfacts.info 2/19/07)<br />
Fatburger is making an effort to offer healthy alternatives to health-conscious diners. The restaurant has switched to trans-fatfree<br />
cooking oil, is offering lean beef and is adding new items. (Company Website 4/3/07)<br />
Fatburger premiered its BBQ Burger for a limited time. The burger is made with 100% pure lean beef, flavored with Bull’s-Eye<br />
Barbeque Sauce and topped with four strips of bacon, lettuce, tomatoes, two homemade onion rings and Swiss cheese on a<br />
toasted bun. (Company Website)<br />
Fatburger introduced a new Candy Blast Shake, made with M&Ms and hand-scooped ice cream and topped with whipped<br />
cream. (Company Website)<br />
Franchise Activity |<br />
Fatburger purchased two of its franchised units in Pittsburgh and Cranberry, PA, from franchisees J&R Enterprises LLC and<br />
JGT Enterprises Inc. It will operate the units as company-owned locations. Fatburger’s first Philadelphia restaurant is slated to<br />
open early next year at Plymouth Meeting Point. (Company Release 10/8/07)<br />
Fatburger franchisee Fog Cutter Capital Group Inc. opened its 13th Las Vegas Fatburger restaurant on October 10. The new<br />
unit is located in the Fiesta Henderson Station Casino. (Company Release 10/10/07)<br />
International Activities |<br />
Fatburger has signed development agreements that will allow the company to launch up to 25 new units in China and nearby<br />
regions by 2010. The first of these overseas units is scheduled to open in August in the Venetian Hotel & Casino, an offshore<br />
gaming resort in Macau (near Hong Kong) that is an international outpost of the Las Vegas-based hotel brand. Other locations<br />
are planned for Beijing. In addition to China, Japan, the United Kingdom and the United Arab Emirates are being targeted by<br />
Fatburger for expansion. (Nation’s Restaurant News 6/25/07 p180)<br />
Fatburger is set to expand into the United Arab Emirates as part of a November 5 deal with franchisee Khalil Asfour of Vestra<br />
Investment. The first unit is slated for Dubai in 2008. (Franchising.com 11/05/07)<br />
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published.<br />
266
Personnel |<br />
Andrew Wiederhorn, CEO<br />
Harold Fox, CFO<br />
Bentley Hetrick, V.P. of Purchasing<br />
John Anderson, V.P. of Operations<br />
Elaine Patel, V.P. of Marketing<br />
News & Other |<br />
Fatburger is upgrading from quick service to fast casual. New advertising to rebrand the name promotes the size of the burger<br />
rather than fat content. After holding eating contests and other events to obtain customer opinions, the restaurant has chosen<br />
the new tagline of “Big. Juicy. Tasty. Now, that’s a Fatburger.” This marketing initiative will coincide with Fatburger’s move into<br />
the Michigan, Washington, D.C., and Hawaii markets in 2007. A total of 200 franchise agreements have already been signed<br />
for the next couple of years. (Chain Leader 6/07)<br />
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published.<br />
267
Fazoli's<br />
Headquarters<br />
2470 Palumbo Dr., Lexington, Kentucky 40509 USA<br />
Tel: (859)268-1668 Fax: (859)268-2263<br />
www.fazolis.com<br />
Ownership: Private<br />
Segment: Limited Service Other<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 318,000 348,331 370,120<br />
Company-owned ($000) 152,000 171,870 177,288<br />
Franchised ($000) 166,000 176,461 192,832<br />
U.S. Number of Units 319 355 375<br />
Company-owned 155 167 170<br />
Franchised 164 188 205<br />
International Sales ($000) - - 1,000<br />
International Units - - 1<br />
Average Sales/Unit ($000) 945 947 983<br />
Concept Positioning |<br />
Fazoli's is a limited-service chain, featuring Italian foods, including pizza, pasta, sandwiches and salads, at an inexpensive<br />
price. The privately held chain operates 319 units across the U.S., 164 of which are franchised.<br />
Units average 2,800–3,000 sq. ft., with seating for 100–140 persons. Units are designed to operate in high-traffic locations<br />
such as shopping malls and highway service areas. The dining room offers a trattoria-like ambiance with colorful awnings,<br />
bentwood chairs and shelves displaying Italian products. Prototypes are currently under development for sites in food courts<br />
and strip malls. Takeout and catering services are available.<br />
The Fazoli’s concept was developed by Jerrico, Inc. in 1988, and Seed Restaurant Group acquired the concept in 1990. Seed<br />
Restaurant's principal investment partner was Duskin Co. Ltd., Osaka, Japan. In 2006, Fazoli's Restaurants Inc. was acquired<br />
by an affiliate of Sun Capital Partners Inc. Terms of the deal were not disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Fazoli's lunch and dinner menu features homestyle pastas, pizzas, paninis, baked favorites, fresh-tossed salads, calzones,<br />
Submarinos, drinks and desserts. Signature items include family-style Italian entrées like Baked Ziti, Ravioli, Homestyle<br />
Lasagna and Fettuccine Alfredo. Also available are oven-baked panini sandwiches, including Ham and Swiss, Four Cheese &<br />
Tomato, Chicken Pesto, Smoked Turkey and Chicken Caesar Club. Other popular dishes include Roasted Garlic Alfredo—<br />
penne tossed with Alfredo sauce, black-pepper chicken, roasted garlic and sundried tomatoes; Tuscan Chicken Bake—penne,<br />
roasted red peppers, salami, black-pepper chicken, marinara sauce, mozzarella and provolone cheese, oven-baked; and the<br />
Italian Meat pizza— pepperoni, sausage, beef, pizza sauce, mozzarella and provolone cheese. All pizzas are nine inches in<br />
size and cooked brick-oven style. Recently the chain introduced a line of menu items containing zero grams of trans fat. Drinks<br />
include Fazoli’s Freezi’s, available in strawberry, strawberry banana or triple berry flavors. Kids and takeout menus are<br />
available. <strong>Menu</strong> prices range from $1.99–$10.99. Checks average $5.<br />
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published.<br />
268
<strong>Menu</strong> Development |<br />
Fazoli’s debuted new flavors for its Italian Ice lineup, including Triple Berry, Peach and Pomegranate. (Company Website)<br />
Fazoli’s added several new salad options, including Chicken & Fruit, lettuce blend with Mandarin oranges, pineapple chunks,<br />
dried cranberries and grilled chicken breast; Chicken BLT Ranch, mozzarella cheese, bacon, grape tomatoes, red onions and<br />
grilled chicken breast over lettuce; Chicken & Pasta Caesar, chopped romaine and Fazoli’s Signature Pasta Salad with grape<br />
tomatoes, shredded Parmesan cheese and a grilled chicken breast; and Parmesan Chicken, grape tomatoes, shredded<br />
Parmesan cheese and a Parmesan-breaded chicken breast over lettuce. (Company Website)<br />
Friendly’s rolled out several new salads. Offerings include: • Crispy Chicken Salad—crispy chicken, Monterey Jack and<br />
Cheddar cheeses, tomatoes, sliced egg and tortilla strips over mixed greens, paired with a honey mustard dressing • Oriental<br />
Chicken Salad—grilled ginger-glazed chicken, Mandarin oranges, roasted almonds and wonton strips over mixed greens, fi<br />
nished with sesame seeds and sweet ginger-sesame dressing • Chicken Caesar Saladgrilled chicken and crunchy croutons<br />
over romaine lettuce, mixed with Caesar dressing and topped with a blend of three cheeses • Kickin’ Buffalo Chicken Salad—<br />
crispy chicken covered in Buffalo sauce, celery, green pepper, red onion, Monterey Jack and Cheddar cheeses and tortilla<br />
strips over mixed greens, paired with bleu cheese dressing. (Company Website)<br />
Fazoli’s added several new items to its menu. They include Ravioli with Meat Sauce; Rigatoni Romano, baked rigatoni with<br />
Italian sausage, crushed red pepper, meat sauce and mozzarella cheese; and Meat Lasagna, lasagna noodles layered with<br />
ricotta, Parmesan and Romano cheeses, ground beef and marinara sauce and topped with mozzarella cheese. (Company<br />
Website)<br />
Fazoli’s introduced a new Combo Meal. Guests can choose from any entrée and add a Side Garden Salad with Drink or Pizza<br />
Slice with Drink. Also available are Spaghetti and Fettuccine Family Bowls, which allow diners to choose from Spaghetti<br />
Marinara, Spaghetti with Meat Sauce, Spaghetti with Meatballs or Fettuccine Alfredo. Customers can add a Garden Salad or<br />
an order of breadsticks. (Company Website)<br />
Personnel |<br />
David Kabel, V.P. of Product Development<br />
Bob Weissueller, CEO<br />
David Smith, CFO<br />
Judy Hollis, V.P. of Purchasing<br />
Dennis Benson, V.P. of Operations<br />
Scott Seldman, V.P. of Marketing<br />
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269
Fire Mountain<br />
Headquarters<br />
1460 Buffet Way, Eagan, Minnesota 55121 USA<br />
Tel: (651)994-8608 Fax: (651)365-2356<br />
www.ryansrg.com/index.php<br />
Ownership: Private<br />
Segment: Limited Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 165,000 144,000 85,000<br />
Company-owned ($000) 165,000 144,000 85,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 65 70 47<br />
Company-owned 65 70 47<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,450 2,395 2,457<br />
Concept Positioning |<br />
Ryan’s Restaurant Group, Inc., has operated its Ryan’s Grill, Buffet & Bakery concept since 1978. The company introduced a<br />
new prototype, Fire Mountain, in 2000. The new stores had higher-than-average startup volume and remodeled sites had<br />
double-digit sales increases (averaging 15%). In 2004, Ryan’s announced that henceforth all new restaurants would<br />
incorporate the Fire Mountain concept. Restaurants operate in 23 states, primarily in the Southern and Midwestern U.S.<br />
Units are freestanding, generally near or adjacent to residential neighborhoods. Units average 8,000–12,500 sq. ft., with<br />
seating for 300–500 people in two or three dining areas. The company seeks sites in well-trafficked commercial areas with<br />
nearby populations of 75,000 or more.The cozy, casual, mountain lodge-style Fire Mountain is an all-you-can-eat flat-price<br />
buffet with display cooking in a glass-enclosed grill and cooking area in the dining room. Designed to be highly visible, it also<br />
has customer access to facilitate service of cooked-to-order meats. Meats are displayed on a central bar and served to order<br />
by dedicated personnel. The display grill also offers an assortment of “hot off the grill” entrées and vegetables for lunch and<br />
dinner. Meals at Fire Mountain also include unlimited visits to enhanced food bars, including fresh fruit and salad bars, or<br />
patrons can choose to make their own salads from the selection of fresh vegetables, fruits, toppings and dressings. Bakery<br />
bars located in dining rooms allow customers to view preparation of freshly baked cookies, muffins, brownies and other baked<br />
goods, many that are sugar-free. Freshly baked bread and drink refills are brought to the table. Most units are open from 11<br />
a.m. to 10 or 10:30 p.m. seven days a week; recently the company started rolling out Saturday and Sunday breakfast, starting<br />
at 7:30 a.m.<br />
Fire Mountain and Ryan's Grill, Buffet & Bakery are now owned and operated by Buffets Holdings Inc. A 2006 acquisition of<br />
Ryan's by Buffets Holdings for $876 million made Buffets Holdings, the parent of such chains as Old Country Buffet/Hometown<br />
Buffet and Country Buffet, the nation's largest buffet restaurant chain. The company has not disclosed expansion plans.<br />
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270
<strong>Menu</strong> Positioning |<br />
Fire Mountain's menu changes daily, with each week's menus posted at the restaurant. A typical offering might include grilled<br />
teriyaki chicken thighs, grilled or pan-seared salmon, grilled pork chops, grilled or pan-fried kielbasa sausage, country-style<br />
ribs, beef or chicken kabobs, sirloin steak, grilled vegetables (zucchini, yellow squash, onion, sweet potatoes and corn on the<br />
cob) and grilled pineapple. <strong>Menu</strong>s also vary by region and according to product availability. The grilled items are<br />
complemented by a selection of hot vegetables, fresh salads (including signature Strawberry Spinach Salad, Caesar salad,<br />
Greek salad and Italian salad daily) and an extensive dessert bar. The set grill/buffet price varies by location and that night’s<br />
menu offerings, and beverages are additional. <strong>Menu</strong> prices range from $3.99–$8.99 and checks average $10.68.<br />
<strong>Menu</strong> Development |<br />
Fire Mountain introduced its new “Hot off the Grill” line featuring Grilled Teriyaki Chicken Thighs, Grilled Pork Steaks, Grilled or<br />
Pan Seared Salmon, Grilled Pork Chops, Grilled or Pan Fried Kielbasa Sausage, Beef or Chicken Kabobs, and Country Style<br />
Ribs. All entrées are served with unlimited visits to an enhanced food bar, including fresh fruit, salad and bakery bars.<br />
(Company Website 4/3/07)<br />
Buffets, Inc. will convert all of its restaurants to zero trans fat frying oils by the end of 2007. The company operates 644<br />
restaurants in 39 states, including HomeTown Buffet, Old Country Buffet, Ryan’s, Tahoe Joe’s Famous Steakhouse and Fire<br />
Mountain. (Smart Brief Online 9/4/07; Company Release 9/4/07)<br />
Personnel |<br />
Mike Andrews, CEO<br />
Rick Sieradzki, CFO<br />
Paul Dubowski, V.P. of Purchasing<br />
Rich Kirk, V.P. of Operations<br />
Joni Bloom, V.P. of Marketing<br />
Joey Basso, V.P. of R&D<br />
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published.<br />
271
Firehouse Subs<br />
Headquarters<br />
3400 Kori Rd. Suite 8, Jacksonville, Florida 32257 USA<br />
Tel: (904)886-8300 Fax: (904)886-2111<br />
www.firehousesubs.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 151,038 137,172 90,000<br />
Company-owned ($000) 30,418 24,800 17,500<br />
Franchised ($000) 120,620 112,372 72,500<br />
U.S. Number of Units 257 212 175<br />
Company-owned 33 33 31<br />
Franchised 224 179 144<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 606 605 600<br />
Concept Positioning |<br />
Firehouse Subs is a limited-service sandwich chain featuring a selection of subs made from high-quality meats and cheeses.<br />
Firehouse Subs is a privately held company operating more than 280 units nationwide, with the majority of its stores<br />
concentrated in the South.<br />
Units are freestanding and average 4,500 sq. ft. with seating for 75 customers. Unit décor features firefighter memorabilia,<br />
including boots and fire jackets hanging from coat racks on a brick wall. Many of these items are procured from local<br />
firehouses. The firehouse theme also extends to the chain's menu, with item names such as the Hook & Ladder Sub and<br />
Engine Company Sub.<br />
Robin and Chris Sorenson opened Firehouse Subs in 1994 in Jacksonville, FL. The brothers named the chain after their<br />
former firefighting careers. The company is currently expanding at a rate of 60 new restaurants per year. It is anticipating the<br />
launch of 100 new Firehouse outlets through 2007. A total of 81 units are being developed in Florida. The company is also<br />
finalizing development deals for units in Mississippi, Missouri, Alabama, Georgia, Louisiana, Texas, Kentucky and Tennessee.<br />
The greater Baltimore area has been named as a target market for the chain, with 35 units planned for the area over the next<br />
seven years.<br />
<strong>Menu</strong> Positioning |<br />
Firehouse Subs features hot and cold subs, soups, salads, old fashioned sandwiches, combos, sides and beverages. Its<br />
signature items are hot subs piled high with meat and cheese on toasted bread rolls. All subs are available in medium (8”) or<br />
large (12”) sizes. Specialty hot subs include Hook & Ladder Subs—smoked turkey breast and Virginia honey ham with<br />
Monterey Jack cheese; Engineer Subs—smoked turkey breast with sautéed mushrooms and melted open-eye Swiss cheese;<br />
New York Steamer Subs—corned beef brisket and pastrami with Provolone, mayonnaise, mustard, Italian dressing and a<br />
kosher dill pickle; and Firehouse Steak Subs—sirloin steak with melted Provolone, sautéed onions and bell peppers,<br />
mayonnaise, mustard and a kosher dill pickle. Old fashioned sandwiches come with a choice of white, wheat, rye or Kaiser<br />
bread, and a choice of cheese. Combos include a medium sub, chips and a medium drink. A kids’ menu is available. <strong>Menu</strong><br />
prices range from $3.99–$6.99 and checks average $6.80.<br />
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published.<br />
272
Expansion Plans |<br />
Peach’s Rise & Dine Restaurants inked an agreement with PR&D of DFW Inc. to open a minimum of 20 units in the Dallas/Ft.<br />
Worth market. PR&D of DFW Inc. also operates Cici’s Pizza restaurants in Texas and Florida as well as several Firehouse<br />
Subs locations in the Dallas/Ft. Worth area. (Company Release 12/12/06)<br />
Firehouse Subs plans to open two locations in Memphis, TN, in 2007, the first in Eastgate Shopping Center by Augus and; the<br />
second in Collierville by year’s end. The company may also open a unit outside the Memphis market in Jackson, TN. The<br />
chain plans to add 15–19 units over the next five years, including a location in the northern Mississippi area. (Bizjournals.com<br />
5/14/07)<br />
<strong>Menu</strong> Development |<br />
Firehouse Subs has eliminated trans fats from its menu. The quick-service chain has always offered trans fat-free sandwiches<br />
and salads, but recently revised some dessert offerings in response to growing consumer demand. The company operates<br />
and franchises 289 units in 14 states. (Nation’s Restaurant News Online 9/14/07; Company Release 9/10/07)<br />
Franchise Activity |<br />
Firehouse Subs wants to open at least 70 outlets in the Washington, D.C., market over the next 10 years. The first unit is<br />
expected to open in Alexandria, VA, in April, with other franchised restaurants expected to follow in 2008. The chain plans to<br />
have 40 outlets in Northern Virginia, 23 in Maryland and four in Washington, D.C. Firehouse Subs operates 260 restaurants<br />
nationwide. (Washington Business Journal 1/31/07)<br />
Personnel |<br />
Douglas Reifschneider, Director of Marketing<br />
Matt Riddleberger, Director of Purchasing<br />
Chris Sorensen, Founder<br />
Robin Sorensen, Founder<br />
Steve Lowe, Manager of Research & Development<br />
Don Fox, COO<br />
Vincent F. Burchianti, V.P. of Finance and Technology<br />
Firehouse Subs named Vincent F. Burchianti Vice President of Finance and Technology. Previously, Burchianti served as the<br />
corporate controller for the company. Burchianti will direct the reporting, accounting and technology departments as well as<br />
annual and long-term business plans. He is to create five-year forecasting models to analyze the effects of different growth<br />
strategies for the chain. (Company Release 4/12/07)<br />
Firehouse Subs hired Stephen Lowe as a vendor quality assurance auditor and research and development assistant. Lowe<br />
recently received his bachelor’s degree in Animal Science from the University of Florida, and worked in the food service<br />
industry at Roadhouse Grill and Ruby Tuesday. (Company Release 9/25/07)<br />
Firehouse Subs has promoted John L. Raulerson to director of technical services. Raulerson has been manager of quality<br />
assurance and research and development for the company. (Fastcasual.com 11/26/07)<br />
News & Other |<br />
Firehouse Subs has been named one of the winners of the National Restaurant Association’s Restaurant Neighbor Award<br />
program. The chain was recognized for providing victims of Hurricane Katrina with food and water. (Fer 11/28/06 p18)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
273
Five Guys Famous Burgers & Fries<br />
Headquarters<br />
8390 Terminal Road Suite B, Lorton, Virginia 22079 USA<br />
Tel: (703)339-9500 Fax: (703)339-9502<br />
www.fiveguys.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 106,500 50,000 17,000<br />
Company-owned ($000) 106,500 50,000 17,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 128 75 27<br />
Company-owned 128 75 27<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,050 1,000 1,000<br />
Concept Positioning |<br />
Five Guys Famous Burgers and Fries is a limited-service chain with a limited menu of signature hamburgers and fries. The<br />
restaurant is out to serve the best burgers possible, focusing on quality, cleanliness and service. Privately held by the Murrell<br />
family, it has kept its cult following while growing to more than 150 locations along the East Coast and in Ohio and Tennessee.<br />
Units are either freestanding or located in strip malls. A typical 1,500- 2,000-sq. -ft. store offers dine-in seating for 40-75<br />
patrons. However, most business comes from takeout and some locations offer delivery. The simple red-and-white-checked<br />
burger joint harks back to an earlier day. The chalkboard announces the place of origin of the potatoes being used that day;<br />
fresh potatoes are also stacked in origin-stamped crates in view of customers, along with containers of the peanut oil used for<br />
frying. Orders require about a 10-minute wait, but patrons are invited to snack on free peanuts from a barrel near the counter;<br />
peanut shells litter the floor.<br />
Five Guys was founded as a single-unit hamburger joint in Arlington, VA, in 1986 by Jerry and Jane Murrell and their five sons.<br />
By 2002, the chain had grown to five locations in northern Virginia. As the restaurant grew in popularity, the family started<br />
franchising. The restaurant plans to develop 1,000 more units in addition to its current 150 locations.<br />
<strong>Menu</strong> Positioning |<br />
Five Guys is open for lunch and dinner. Its burgers are made from 3.25 oz. of freshly ground high-grade USDA beef, cooked<br />
when ordered (well done only) and served on fresh buns. Burgers come in varieties including little hamburgers and<br />
cheeseburgers, regular hamburgers and cheeseburgers, bacon cheeseburgers and bacon hamburgers. A dozen or more free<br />
toppings can be added (as part of the order or self-service from the condiment table), including fried onions, chopped fresh<br />
onions, sautéed mushrooms, jalapeño peppers, green peppers and barbecue sauce. Rounding out the sandwich menu are<br />
kosher hot dogs (also available with bacon, cheese or both), a grilled cheese sandwich and a veggie sandwich. Five Guys is<br />
just as famous for its fries as for its burgers. Skin-on potatoes are hand-cut in-house, then fried in peanut oil in small batches<br />
without the use of warming lamps. Fries are available in two sizes, plain or with Cajun seasoning. Soft drinks round out the<br />
menu. <strong>Menu</strong> items range from $1.79–$4.86. Checks average $6.<br />
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274
Expansion Plans |<br />
Five Guys Famous Burger and Fries plans to open 15 units in the Birmingham, AL, area over the next few years. The first of<br />
these locations is slated to open at Colonial Brookwood Village in August. (Bizjournals.com 7/2/07)<br />
Franchise Activity |<br />
Five Guys Famous Burgers and Fries will expand in New York via a franchise agreement. The 200-unit fast-casual burger<br />
chain has signed a deal with Five Point Partners to open 30 units across Manhattan over the next eight years. Five Point<br />
Partners also owns the exclusive development rights for the Dunkin’ Donuts and Baskin-Robbins brands in parts of the<br />
Washington, DC, area, and is a Subway franchisee in central New York state. (Nation’s Restaurant News Online 10/26/07)<br />
Personnel |<br />
Jimmy Murrell, President<br />
Glenn Drasher, V.P. of Marketing<br />
Mark Moscley, Director of Development<br />
Chad Murrell, Operations Co-ordinator<br />
Jim Murrell, Operations Co-ordinator<br />
Matt Murrell, Operations Co-ordinator<br />
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275
Fleming's Prime Steakhouse & Wine Bar<br />
Headquarters<br />
2202 N. Westshore Blvd 5th FL, Tampa, Florida 33607 USA<br />
Tel: (813)282-1225 Fax: (813)282-1209<br />
www.flemingsprimesteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 200,000 150,000 109,000<br />
Company-owned ($000) 200,000 150,000 109,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 50 39 32<br />
Company-owned 50 39 32<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,000 4,911 4,550<br />
Concept Positioning |<br />
Fleming's Prime Steakhouse & Wine Bar is a full-service polished-casual dinnerhouse concept known for its premium aged<br />
steaks and superior wine selection. The concept is positioned as a contemporary and lively steakhouse with a warm ambiance<br />
and moderate price point. Fleming’s attracts a broad demographic, from professionals and couples to families with children.<br />
OSI Restaurant Partners Inc., the parent company of Fleming’s, owns and operates 50 locations nationwide.<br />
Units average 7,900 sq. ft. with seating for 200 guests in the main dining room and an additional 34 at the bar. Fleming’s décor<br />
includes custom-made alabaster chandeliers, high ceilings, light wood fixtures with cherry wood accents and hardwood floors.<br />
Carefully arranged leather booths, banquettes and tables are spaciously arranged for a large, open setting. Other design<br />
features include exhibition kitchens finished in stainless steel and accented with copper, large glass tempered display wine<br />
vaults and bars. Separate dining rooms are also available to accommodate larger groups for private events.<br />
Paul Fleming and Bill Allen launched Fleming’s Prime Steakhouse & Wine Bar in 1998 in Newport Beach, CA. Outback<br />
Steakhouse, Inc. became a joint-venture partner in 1999, with Fleming and Allen holding a 50% interest and Outback holding<br />
the other half. In 2004, Outback boosted its stake in Fleming's to 90% following an infusion of $39 million. In 2006, Outback<br />
Steakhouse announced a company name change to OSI Restaurant Partners Inc. OSI also owns Outback Steakhouse,<br />
Carrabba's Italian Grill, Bonefish Grill, Roy’s, Lee Roy Selmon's, Cheeseburger in Paradise and Blue Coral Seafood & Spirits.<br />
The company has not disclosed future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Fleming's offers a full-service elegant dining experience and specializes in premium hand-cut aged steaks. Other menu<br />
features include appetizers, salads, sides, chops, chicken, seafood and beverages. Signature items are its USDA prime<br />
beefsteaks, such as the 8-oz. Petite Filet, 16-oz. Prime Ribeye, 16-oz. Prime New York Strip and the Beef Flemington. Other<br />
popular menu items include Breaded Brie, Warm Spinach Mushroom Salad, Australian Lamp Chops, Tuna Mignon and<br />
Steamed King Crab Legs. Sides include a selection of roasted seasonal vegetables, sautéed mushrooms, sautéed or creamed<br />
spinach, chipotle Cheddar macaroni & cheese, shoestring potatoes, stuffed double baked potatoes and onion rings. Fleming's<br />
has a wine list of more than 100 domestic and imported wines by the glass and a vault reserve list with more than 80 bottles of<br />
limited availability. <strong>Menu</strong> prices range from $4.95–$33.95 and checks average $55.<br />
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276
<strong>Menu</strong> Development |<br />
Wine flights are a good choice for diners looking to sample different styles of wine to complement a meal. Outlets of Newport<br />
Beach, CA-based Fleming’s Prime Steakhouse & Wine Bar offer six Discovery Flights themed around a wine region or variety.<br />
Purple Café & Wine Bar restaurants in Seattle, Kirkland and Woodinville, WA, menu 18 different wine flights, including some<br />
with unusual selections. At some restaurants, such flights do not even consist of wines, but instead could be single-malt<br />
Scotches, Belgian ales or tequilas. (Nation’s Restaurant News Online 11/16/06)<br />
Veal is a way for operators to add a delicate, sophisticated flavor to their menus. Norman’s in Coral Gables, FL, menus a<br />
Mongolian Barbecued Veal Chop, which has been marinated 12 hours in hoisin and plum sauces, honey, sriracha and<br />
peanuts, paired with grilled Japanese eggplant tossed in olive oil and lightly dressed mesclun greens. At Lacroix at the<br />
Rittenhouse in Philadelphia, guests can dine on Caramelized Milk-Fed Veal Chop, pan-roasted to caramelize the chops and<br />
finished with butter, cocoa nibs and herbs, paired with housemade fig jam and cipollini onions. Fleming’s Prime Steakhouse &<br />
Wine Bar locations offer patrons Broiled Veal Chop, 14-oz. veal chops seasoned with salt and cracked black pepper with<br />
béarnaise sauce and a side of asparagus. (Restaurants & Institutions 5/01/07 p49)<br />
Elegant steakhouses are appealing to a new clientele with revamped menus and elaborate bar décor. By broadening diningroom<br />
menus beyond steak entrées, pairing appetizers with wines by the glass, and introducing children’s menus, many finedining<br />
restaurants, including Fleming’s Prime Steakhouse & Wine Bar and Ruth’s Chris Steak House, are attracting women,<br />
young professionals and health-conscious diners who previously shied away from steakhouses. Ruth’s Chris has experienced<br />
growth after providing more flexible menu options, including smaller portions of regular menu items, along with a new design<br />
for the bar and lounge. Similarly, Fleming’s has created a more contemporary design for the chain’s bars and added a “Flights<br />
and Bites” promotion that matches three appetizers with three wines for less than $20. (Nation’s Restaurant News 9/3/07)<br />
Personnel |<br />
Nancy Schneid, Director of Marketing<br />
A. William, III Allen, CEO<br />
Dirk A. Montgomery, CFO<br />
Irene Wenzel, V.P. of Purchasing<br />
Paul Avery, COO<br />
Jennifer Caper, V.P. of Development<br />
News & Other |<br />
Fleming’s Prime Steakhouse and Wine Bar reported for the fourth quarter ended December 31 same-store sales rose 3.5%.<br />
(Company Release 2/1/07)<br />
Fleming’s Prime Steakhouse and Wine Bar in Scottsdale, AZ, is being sued by the U.S. Equal Employment Opportunity<br />
Commission. The suit alleges that male employees were sexually harassed by male managers and it also claims that some<br />
employees were dismissed for complaining. OSI Restaurant Partners Inc., the chain’s owner, says that the lawsuit is without<br />
merit and it will vigorously defend itself. (NRN Daily NewsFax 4/11/07)<br />
OSI Restaurant Partners Inc. reported for the quarter ended March 31 same-store sales system-wide declined 0.5% at<br />
Outback Steakhouse, 1.3% at Carrabba’s Italian Grills, 0.7% at Bonefish Grills, 2.1% at Roy’s and rose 3.3% at Fleming’s<br />
Prime Steakhouse and Wine Bars. For the five weeks ended March 31, same-store sales system-wide fell 0.1% at Outback<br />
Steakhouse, 0.7% at Carrabba’s Italian Grills, 1% at Bonefish Grills, and 1.6% at Roy’s, and grew 0.7% at Fleming’s Prime<br />
Steakhouse and Wine Bars. (Company Release 4/5/07)<br />
OSI Restaurant Partners Inc. reported April same-store sales grew 1% at Outback Steakhouse, 1.1% at Carrabba’s Italian<br />
Grill, 1.9% at Fleming’s Prime Steakhouse & Wine Bar, 0.7% at Bonefish Grill and 0.8% at Roy’s. (NRN Daily NewsFax<br />
5/4/07)<br />
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277
Fox and Hound English Pub & Grille<br />
Headquarters<br />
1551 N. Waterfront Prkwy. Suite 310, Wichita, Kansas 67206 USA<br />
Tel: (316)634-0505 Fax: (316)634-6060<br />
www.tentcorp.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
Chain Brands<br />
Champps Entertainment, Inc.<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 193,000 175,000 149,000<br />
Company-owned ($000) 193,000 175,000 149,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 88 88 75<br />
Company-owned 88 88 75<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,200 2,150 2,100<br />
Concept Positioning |<br />
Fox and Hound English Pub & Grille is a full-service restaurant and bar providing billiards, darts and sports programming in an<br />
upscale setting. The restaurant offers a broad menu of mid-priced American bar food including barbecue, burgers and pizzas.<br />
Fox & Hound Restaurant Group is the parent company of Fox & Hound Restaurants.<br />
Units feature three large rooms averaging 9,600 sq. ft. with seating for 150 guests. Fox and Hound’s décor consists of<br />
polished brass, embroidered chairs and booths, etched glass, warm lighting and rich wood-finished interiors. The bar and<br />
primary dining room are centrally located and the two side rooms are partitioned from the bar and dining area, with each<br />
holding approximately four to six billiard tables as well as numerous cocktail tables. Units typically have 35 televisions<br />
(including several big-screens) with satellite and cable coverage of concurrent national, regional and local sporting events.<br />
The first Fox & Hound opened in 1994. In 1997, Total Entertainment Restaurant acquired the Fox & Hound and Bailey’s<br />
concepts and changed their name to Fox & Hound Restaurant Group. All units are company owned, and there are currently no<br />
plans for franchising.<br />
<strong>Menu</strong> Positioning |<br />
Fox and Hound Restaurants offer a standard pub menu with signature items including pizza, ribs, sandwiches and burgers.<br />
The selection also includes a variety of grilled and smoked barbecue entrées, such as Texas Beef Brisket and Georgia<br />
Chopped Pork. Appetizers, soups and salads are also offered. The desserts are New York-style cheesecake, chocolate cake<br />
or chocolate chip cookies. The chain offers over 100 brands of ales, lagers and specialty beer, with approximately 30 varieties<br />
on tap. <strong>Menu</strong> prices range from $5.99–$16.99 and checks average $12.<br />
Promotion Plans |<br />
Fox and Hound Pub & Grille introduced gift cards. The cards can be purchased and reloaded online at the company’s website.<br />
(Company Website 4/4/07)<br />
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278
<strong>Menu</strong> Development |<br />
Fox & Hound Restaurant debuted a Simply Delicious menu for a limited time. Selections offered are: • Southern Comfort Beef<br />
Skewers—slow-cooked ground beef wrapped in applewood smoked bacon, skewered, fried crisp, topped with fried onion<br />
straws and served with 30 Spice BBQ Sauce over garlic mashed potatoes • Double Cheese Sweet Potato Fries—thinly cut<br />
sweet-potato fries topped with grated Romano cheese and served with a spicy queso dipping sauce • Lone Star Meatloaf<br />
Melt—thin slice of seared home-style meatloaf with layers of sautéed mushrooms, onions, applewood-smoked bacon, Swiss<br />
cheese and toasted tomato sauce, served on Texas toast with a side of thick-cut steak fries • Mojito Shrimp Salad—chilled<br />
jumbo shrimp mixed with chopped romaine, red bell pepper, mango, pineapple, red onion, fire-roasted corn and cucumber,<br />
with mojito lime and mint vinaigrette, topped with toasted coconut Chocolate Crème Beignets—five cream-filled chocolate<br />
cookies covered with a sweet buttermilk batter, fried crispy and finished with whipped cream, chocolate and caramel sauces<br />
and a touch of powdered sugar. (Company Website)<br />
Personnel |<br />
Jeff Burrus, Director of Purchasing<br />
Steven Johnson, CEO<br />
Jim Zielke, CFO<br />
Kenneth Syvarth, V.P. of Operations<br />
Erin Haipley, V.P. of Marketing<br />
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published.<br />
279
Fox's Pizza Den<br />
Headquarters<br />
4425 Willian Penn Hwy., Murrysville, Pennsylvania 15668 USA<br />
Tel: (800)422-3167 Fax: (724)325-5479<br />
www.foxspizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 180,000 140,000 128,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 180,000 140,000 128,000<br />
U.S. Number of Units 298 265 244<br />
Company-owned - - -<br />
Franchised 298 265 244<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 500 550 540<br />
Concept Positioning |<br />
Fox’s Pizza Den specializes in several varieties of pizzas, along with sandwiches, salads and sides. Its specialty "Wedgie"<br />
sandwich remains one of its most popular menu items. Based in Pennsylvania, the company now has more than 265<br />
franchises in 28 states nationwide.<br />
Fox's Pizza locations are designed to emphasize a sense of community. Each shop is generally run by someone who lives in<br />
the area so that owners can tailor offerings to their specific area and get to know their customers. Open seven days a week,<br />
the typically 2,000-sq.-ft. units are found in freestanding locations and strip malls. The look of each unit is, for the most part, up<br />
to individual owners.<br />
Fox’s Pizza Den was founded in Pitcairn, PA, by Jim Fox in 1971. Franchising began in 1974. The company started its own<br />
commissary in 1986. Originally stocking about 80 items, it now offers more than 200 products ranging from private label<br />
sauces and prepackaged dough to shirts featuring the Fox’s logo. Fox’s Pizza Den plans to continue expansion through<br />
franchising.<br />
<strong>Menu</strong> Positioning |<br />
Fox's Pizza Den menus a wide variety of pizzas, Strombolis, hoagies, Wedgies, sandwiches, salads and sides. Pizzas come in<br />
9” (small), 12” (medium), 14” (large), 16 (x-large) and the Big Daddy, 24” x 12” rectangle sizes. Sixteen toppings are available.<br />
Gourmet pizzas include the Deluxe Pizza—sauce, cheese, pepperoni, sausage, mushroom, green pepper and onion; Meat<br />
Supreme—sauce, cheese, pepperoni, sausage, ham, bacon and hamburger; and the Taco Pizza—sauce, taco meat, nacho<br />
chips and Cheddar cheese, topped with lettuce, tomato and taco sauce. Strombolis are similar to calzones and can be made<br />
with a variety of pizza topping. The signature menu item is the Wedgie—a sandwich served on a 9” pizza crust instead of a<br />
bun. Wedgie choices include Steak, Italian, Pizzaroni, Club, Beef Bacon & Cheddar, Turkey Breast, Ham & Cheese, Veggie<br />
Wedgie, Chicken Breast, Roast Beef, Taco and BLT. Salads and sides include breadsticks, wings, fries, taco salad, chef salad<br />
and tossed salad. <strong>Menu</strong> prices range from $1.09–$15.99. Checks average $10.<br />
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published.<br />
280
Franchise Activity |<br />
Fox’s Pizza Den franchisees Kierstin and David Walton will open a location in the Village at Franklin Grove in Oconee County,<br />
GA. (Onlineathens.com 8/24/07)<br />
Personnel |<br />
Ken Crosby, Director of Operations<br />
Jim Fox, CEO<br />
Jim Jr. Fox, V.P. of Purchasing<br />
Ken Crosby, Director of Marketing & Operations<br />
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published.<br />
281
Freshen's<br />
Headquarters<br />
1750 The Exchange, Atlanta, Georgia 30339 USA<br />
Tel: (678)627-5400 Fax: (678)627-5454<br />
www.freshens.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 215,000 200,000 184,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 215,000 200,000 184,000<br />
U.S. Number of Units 1,750 1,750 1,650<br />
Company-owned - - -<br />
Franchised 1,750 1,750 1,650<br />
International Sales ($000) 8,500 1,600 1,200<br />
International Units 35 20 12<br />
Average Sales/Unit ($000) 115 115 115<br />
Concept Positioning |<br />
Freshen’s Frozen Treats is a limited-service concept specializing in soft-serve frozen treats, hand dipped ice cream and<br />
smoothies. The chain is privately held and operates 1,785 units worldwide, all of which are franchised. More than 1,500 are<br />
located in the U.S. and Canada.<br />
Units range from 64-600 sq. ft. and include prototypes for both ice cream and yogurt stores. Some designs also incorporate<br />
their own pretzel and cookie brands. Its current project is development of co-branded units along with its other concept, Pretzel<br />
Logic. Units are located primarily in malls, college campuses and airports.<br />
Freshen’s was developed by its president, John Stern, in 1985. Yogurt Ventures USA licenses and franchises Freshen’s<br />
Frozen Treats, as well as Freshen’s Farms Ice Creamery, Freshens Smoothie Company and Freshen’s Pretzel Logic Hand-<br />
Twisted Pretzels, which are most often co-brand with the original Freshen’s concept. Currently, the company is seeking<br />
franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Freshen’s is open for lunch and dinner and features 38 flavors of soft-serve frozen yogurt and ice cream with 35 toppings. Its<br />
soft-serve frozen yogurt is also available in fat-free, low-fat and fat-free/no-sugar added flavors. All flavors are rotated on the<br />
menu every three to four months. Freshens' uses Outrageous, an ultra-premium ice cream with 21% butterfat and MET-Rx<br />
Nutritional Boosters for smoothies. Ice cream and yogurt are available as sundaes, parfaits, cups, cones, shakes, smoothies<br />
and MicroBlasts. The most popular ice cream flavors are Green Bikini, Fly Boy, Lick the Spoon, Show Me the Money and<br />
Yada Yada. The chain's best sellers include Old Fashioned Milkshakes, available in six flavors like Banana Cream and Orange<br />
Crème; and MicroBlasts—soft-serve frozen yogurt mixed with bits of candies like Oreo, Butterfinger, Cookie Dough or Reese’s<br />
Peanut Butter Cups. Pretzel Logic co-brands pretzels in assorted flavors with toppings and dipping sauces and cookies under<br />
the name of R.J Cookies, Ltd. Pretzel flavors include: Poppyseed, Sesame Seed, Garlic Parmesan, Cinnamon Sugar and<br />
Powdered Sugar. <strong>Menu</strong> prices range from $2.29–$4.99. Checks average $3.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
282
Personnel |<br />
John Stern, CFO<br />
Jim Schad, V.P. of Purchasing<br />
Paul Nattis, V.P. of Operations<br />
Ed Redmond, V.P. of Research & Development<br />
John Stern, President<br />
Ed Redmond, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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283
Friendly's<br />
Headquarters<br />
1855 Boston Rd., Wilbraham, Massachusetts 01095 USA<br />
Tel: (413)543-2400 Fax: (413)731-4451<br />
www.friendlys.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 671,242 673,917 691,719<br />
Company-owned ($000) 395,999 410,956 448,661<br />
Franchised ($000) 275,243 262,961 243,058<br />
U.S. Number of Units 514 520 535<br />
Company-owned 316 314 347<br />
Franchised 198 206 188<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,280 1,260 1,235<br />
Concept Positioning |<br />
Friendly Ice Cream Corp. operates family-oriented restaurants specializing in ice cream and other frozen treats, burgers,<br />
sandwiches, and traditional lunch and dinner entrees for moderate prices. Historically, Friendly’s locations have been<br />
scattered throughout the Northeast. The chain is owned and operated by Sun Capital Partners Inc.<br />
Open for breakfast, lunch and dinner, units are freestanding or in malls. Unit size ranges from 2,200–3,800 sq. ft. for its mall<br />
and strip center locations and 2,400–5,000 sq. ft. for its freestanding sites. Friendly's is in the midst of an interior remodeling<br />
effort, converting its older stores toward a new prototype which features wood and faux leather dining-room booths, period<br />
ceiling fixtures and checkerboard flooring.<br />
A manufacturing plant produces its proprietary ice cream and most of the syrups and toppings used in Friendly's restaurants.<br />
In addition, the plant distributes ice-cream products to more than 3,500 supermarkets and retail locations. A limited number of<br />
items, primarily milk, baked goods, eggs and produce, are purchased from local sources designated by Friendly's central<br />
purchasing department.<br />
The Friendly Ice Cream Chain was started by two brothers, Curtis and Prestley Blake in 1935. Their first ice-cream shop<br />
featured 5¢ double-dip cones, but they quickly expanded the menu to include hamburgers and added restaurant locations. By<br />
1974, the Friendly’s operation swelled to nearly 500 locations concentrated throughout the Mid-Atlantic and northeastern U.S.<br />
In 2007, an affiliate of private investment firm Sun Capital Partners, Inc., acquired Friendly’s. At the time of the acquisition,<br />
Sun’s managing director noted plans to strengthen Friendly’s performance with improved menus, remodeling, and new<br />
openings.<br />
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284
<strong>Menu</strong> Positioning |<br />
Friendly's menu features appetizers, breakfast, burgers, entrée salads, sandwiches, dinners, sandwiches and ice cream. Its<br />
signature item is ice cream, including pies, cakes, and rolls with most prepackaged and ready to take home. Frozen yogurt,<br />
sherbet and “no sugar added” ice cream are also available. Ice cream flavors include: chocolate chip cookie dough, black<br />
raspberry, mint chocolate chip, butter pecan, maple walnut, Vienna mocha chunk, strawberry passion, forbidden chocolate and<br />
more. Other signature food items include: Towering Fronions—crispy fried onion rings and strips served with zesty dipping<br />
sauce; Western BBQ—fronions, tangy BBQ sauce, and melted Cheddar cheese; and Oriental Chicken Salad—ginger-glazed<br />
chicken, mandarin oranges, roasted almonds, wonton strips, and field greens.. Breakfast is served all day and includes<br />
traditional breakfast fare such as eggs and omelettes, pancakes, bagels, bacon and sausage and French toast. <strong>Menu</strong> prices<br />
range from $4.49-10.99 for breakfast entrées, $4.19–$12.99 for lunch and dinner entrées and $2.49–$12.19 for ice cream.<br />
Checks average $10.50.<br />
Expansion Plans |<br />
Friendly’s restaurants will be opened during the next seven years in North Carolina. Clif Bullard of Bullard Restaurant Group<br />
has agreed to open 12 Friendly’s restaurants. The restaurant currently dominates the Northeast and Middle Atlantic regions.<br />
(NRN Daily NewsFax 11/15/06)<br />
Promotion Plans |<br />
Friendly’s has partnered with Apple for a summertime promotion asking teens and young adults to show their devotion to the<br />
brand by screaming about why they love Friendly’s food and ice cream. Customers can submit videos and photos online at<br />
IScreamFriendlys.com, starting on July 6 and continuing for the following seven weeks. Weekly prizes include Apple<br />
televisions, MacBooks, Video iPods with Bose SoundDock systems and Canon digital cameras. Finalists will be judged in a<br />
final contest to determine the grand-prize winner of a $10,000 Apple shopping spree. Second and third place winners will<br />
receive $5,000 and $2,500, respectively. (PromoMagazine.com 6/29/07)<br />
<strong>Menu</strong> Development |<br />
Friendly’s launched a Homestyle Classic menu featuring three new entrées and two classic dishes. The menu will be available<br />
through the holidays. Offerings include Portabella Steak Tips and Gravy, sirloin tips, portabella mushrooms, rich gravy,<br />
mashed potatoes, garden vegetables and grilled garlic bread; Chicken Marinara, crispy chicken strips covered with mozzarella<br />
cheese, smothered in marinara sauce, sprinkled with a blend of Italian cheeses and served with rice, broccoli and grilled garlic<br />
bread; and Fisherman’s Platter, combining fried shrimp and clam strips with a grilled, breaded filet of flounder, served with rice,<br />
garden vegetables, grilled garlic bread and tartar and cocktail sauces. Other Homestyle Classic menu selections are the BBQ<br />
Chicken Platter and BBQ Style Meatloaf. All meals come with a free Happy Ending Sundae, which guests can turn into a<br />
three-scoop sundae for $1.50 more. (Company Release 10/25/06)<br />
Friendly’s debuted five new sandwiches. All of the selections come with golden fries and pickle chips. They include: • Turkey<br />
Club Deluxe—turkey breast slices, bacon, lettuce, tomato and mayonnaise on three tiers of toasted sourdough bread • Hot<br />
Pastrami Supermelt—New York style pastrami, sautéed onions, melted Swiss cheese and roasted red pepper garlic sauce on<br />
grilled marble rye bread • Southwestern Chicken Supermelt—crispy chicken strips mixed with a chipotle sauce, with bacon and<br />
melted pepper Jack cheese, served on grilled sourdough bread • Frisco Supermelt—burger topped with shredded lettuce,<br />
tomato slices, Thousand Island dressing and melted Cheddar cheese and served on grilled sourdough bread • Friendly’s<br />
Steak Dip—seasoned steak, sautéed onions and Swiss cheese on a grilled hoagie roll with warm au jus dipping sauce.<br />
(Company Website)<br />
Friendly’s introduced new burgers for a limited time: Chicago Firehouse Burger with American cheese, slices of Italian cherry<br />
peppers, red onion, mustard, ketchup, tomato, lettuce and mayonnaise; Classic Turkey Burger with roasted red pepper garlic<br />
sauce, Swiss cheese, tomato and lettuce on a grilled bun; Tomato Pesto Provolone Burger, with sundried tomato pesto sauce,<br />
provolone cheese, lettuce, sautéed onions, tomato and mayonnaise on artisan ciabatta bread; Southwestern Bacon Burger,<br />
with pepper Jack cheese, chipotle sauce, tomato, lettuce, bacon and mayonnaise on a grilled bun; BLT Burger, with lettuce,<br />
tomato, bacon and mayonnaise on toasted sourdough bread; and Honey BBQ Burger, with bacon, lettuce, tomato, Cheddar<br />
cheese, mayonnaise and honey BBQ sauce on a grilled bun. The burgers come with pickle chips and fries and are available<br />
from April 16 to May 27. (Company Website 4/17/07)<br />
Friendly’s Ice Cream Corp. will add five flavors of iced lattés and three flavors of the Tropical Chillers frozen fruit beverages.<br />
The beverages will be marketed as snacks. The company will also test Black Angus burgers. (Nation’s Restaurant News<br />
5/21/07 p 15)<br />
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Friendly’s added several new Iced Lattes and Friendly’s Chillers for the summer. Iced Latte flavors include Regular, Mocha,<br />
Caramel, French Vanilla and Hazelnut. Chillers are combos of Sprite and orange juice with flavors such as Blue Raspberry,<br />
Cherry or Pineapple and an orange and cherry garnish. (Company Website)<br />
Friendly’s rolled out a variety of chicken baskets. Featured offerings are: • Honey BBQ Chicken Strips Basket—chicken strips<br />
covered in BBQ sauce, paired with ranch dip and served with fries and coleslaw • Kickin’ Buffalo Chicken Strips Basket—<br />
crispy chicken strips coated in Buffalo sauce, paired with bleu cheese dressing and sides of fries and coleslaw • Chicken Strips<br />
Basket—crispy chicken strips paired with fries, coleslaw and a choice of honey mustard or BBQ sauce • Southwest Chipotle<br />
Chicken Strips Basket—crispy chicken strips covered in chipotle sauce, paired with fries, coleslaw and ranch dressing.<br />
(Company Website)<br />
Kids’ menus are becoming more sophisticated to cater to young people’s more discerning palates as well as adults looking for<br />
comfort food. At select Roy’s Restaurant locations, the kids’ menu includes sushi. At one location in New York City, the menu<br />
offers a three-course children’s meal ($12) featuring a choice of one of five entrées as well as a sundae. The courses include<br />
sushi, teriyaki-glazed salmon with steamed vegetables, braised short ribs with mashed potatoes and penne with a cheesebutter<br />
sauce. At Viand in Chicago, Chef Steve Chiappetti prepares peanut butter and jelly sandwiches, with the choice of three<br />
kinds of jelly and smooth or chunky peanut butter; fries prepared from celery coated in a tempura batter; fish and chips in a<br />
fish-shaped wire basket; and a junk-food cart with housemade versions of Twinkies, Sno Balls and Oreos. Friendly’s<br />
Restaurants relied on a panel of advice from young adults to help develop its kids’ menu. The chain did not reveal specific<br />
items but did say that new offerings would include more ethnic items, such as salsa. (Nation’s Restaurant News Online<br />
6/11/07)<br />
Franchise Activity |<br />
Friendly’s Ice Cream franchisee, Kessler Family, LLC, has hired Mastodon Ventures, Inc. as its strategic advisor. Mastodon<br />
Ventures, Inc. will explore strategic alternatives including the acquisition of some or all of the assets of the company should<br />
such assets be available for sale. (Company Release 3/12/07)<br />
Friendly Ice Cream Corp.’s largest franchisee, Kessler Family LLC, is considering acquiring the chain. Kessler is looking to<br />
purchase some or all of Friendly’s assets if they are offered for sale. Friendly’s operates and franchises 514 restaurants,<br />
mainly in the eastern United States. (Nation’s Restaurant News Online 3/12/07; Company Release 3/12/07; NRN Daily<br />
NewsFax 3/13/07)<br />
Friendly’s franchisees representing 95% of all operators of the chain wrote a letter to shareholders that expresses their support<br />
for the new CEO. They also express their opposition to any investor who will not protect the interests of franchisees. This<br />
group of 39 franchisees does not include the largest franchisee, Kessler Family LLC, which operates 46 units of the 514-outlet<br />
chain. Kessler recently said that it was considering purchasing of part of all of Friendly's. The chain has been considering a<br />
sale of the company and other strategic alternatives. Friendly's faces a challenge from a 15% stakeholder that is trying to win<br />
two seats on its board of directors. (NRN Daily NewsFax 3/22/07)<br />
Personnel |<br />
George Condos, CEO/President<br />
Paul Hoagland, CFO<br />
Steven Feyman, V.P. of Purchasing<br />
Ken Green, V.P. of Operations<br />
Andre Feuhr, V.P. of Research & Development<br />
Pete Bell, V.P. of Marketing<br />
Friendly Ice Cream Corp. hired George M. Condos as president and chief executive officer, effective January 8. Previously,<br />
Condos served as brand officer for Dunkin’ Brands. (Company Release 1/8/07)<br />
Friendly Ice Cream Corp. has hired Kevin McNamara as senior director for organization and management development.<br />
Previously, McNamara served as vice president of training for Dunkin’ Brands. (NRN Daily NewsFax 3/22/07)<br />
News & Other |<br />
Friendly Ice Cream Corporation reported for the third quarter ended October 1 net earnings decreased 41.2% to $2 million<br />
from $3.4 million for the same period last year. Revenues increased 0.6% to $141.9 million from $141.1 million. Same-store<br />
sales grew 1.7% for company-operated restaurants and fell 1.7% for franchised restaurants. (Company Release 11/8/06)<br />
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Friendly Ice Cream Corp. is engaged in a board dispute with shareholder The Lion Fund LP. The Lion Fund holds a 12.7%<br />
stake in the Friendly’s chain and was looking to nominate two directors to the board at Friendly’s. The chain offered Lion Fund<br />
two seats in order to avoid a proxy fight. (Nation’s Restaurant News Online 1/01/07)<br />
Friendly Ice Cream Corporation reported for the fourth quarter ended December 31 net earnings increased to $0.1 million from<br />
a loss of $30.2 million for the same period last year. Revenues dropped 0.9% to $122.4 million from $123.5 million. Samestore<br />
sales increased 1.8%. For the year ended December 31, net earnings increased to $4.9 million from a loss of $27.3<br />
million for 2005. Revenues grew 0.03% to $531.5 million from $531.3 million. Same-store sales rose 1.4%. (Company Release<br />
3/7/07)<br />
Friendly Ice Cream Corp. plans to revive the brand with a new menu featuring more contemporary sandwiches, cold<br />
beverages and other healthy options. It also plans to modernize the restaurants and put an emphasis on quick service.<br />
(Boston.com 3/8/07)<br />
Friendly Ice Cream Corp. reported for the first quarter ended April 1 a net loss of $6 million compared to a loss of $1.8 million<br />
for the same period last year. Revenues declined $2.5% to $122.6 million from $125.7 million. Same-store sales fell 4.1% at<br />
company-owned locations and 4.6% at franchised units comparable to the first quarter of 2006. (Company Release 5/11/07)<br />
Friendly’s Ice Cream has agreed to a $337.2 million acquisition by Freeze Operations Holding Corp., an affiliate of Sun Capital<br />
Partners Inc. The corporate office and its franchisees operate 515 family-dining restaurants in the Northeast and Friendly’sbrand<br />
ice cream is sold in more than 4,000 retail locations throughout the country. Sun Capital Partners Inc. has controlling<br />
interest or investment stakes in Bruegger’s, Fazioli’s Restaurants, Garden Fresh Restaurant Corp., Real Mex Restaurant,<br />
Restaurants Unlimited and Souper Salad. (Nation’s Restaurant News 6/25/07 p15)<br />
Friendly Ice Cream Corporation is offering to purchase any and all of its outstanding $175 million aggregate principal amount<br />
of senior notes that are due in 2012. The company will pay for the notes in cash. (Company Release 7/26/07)<br />
Friendly Ice Cream Corp. shareholders approved a $337.2 million sale of 515 Friendly’s locations to Freeze Operations Inc.,<br />
which will assume Friendly’s debt and will pay shareholders $15.50 per share in cash. The transaction was completed August<br />
30. Freeze Operations Inc. is an affiliate of Sun Capital Partners Inc. (NRN Daily NewsFax 8/30/07)<br />
The acquisition of Friendly Ice Cream Corp. to Sun Capital Partners Inc. for $337.2 million has been completed. All directors of<br />
Friendly’s have resigned from the board in connection with the transaction. (NRN Daily NewsFax 9/4/07)<br />
Friendly Ice Cream Corp. has sold and leased back its headquarters and 160 restaurants in a deal with Realty Income Corp.<br />
The aggregate price was not disclosed. Friendly’s was acquired in August for $337.2 million by Sun Capital Partners, a<br />
Florida-based private-equity firm with holdings in the restaurant industry. Most stores involved in the sale-leaseback<br />
transactions were company-owned. Friendly’s has 316 company-owned restaurants and 196 franchises. (Nation’s Restaurant<br />
News Online 10/22/07)<br />
Friendly Ice Cream Corp., Friendly’s Restaurant Franchise, and the owners of a Friendly’s restaurant in Myrtle Beach, SC,<br />
have been accused of racial discrimination by the NAACP. In a lawsuit filed in U.S. District Court in Florence, SC, the<br />
restaurant is accused of serving a limited menu from the sidewalk during a motorcycle rally attended by blacks, bu staying<br />
open with a full menu during a similar rally attended mostly by whites. In addition, the NAACP claims that the restaurant did<br />
not offer its ice cream for sale and accepted only cash payments during the black biker weeks, which took place from 1999 to<br />
2005. The lawsuit seeks unspecified monetary awards from the defendants and asks that the court bar the restaurant from<br />
continuing the alleged discrimination. (The Associated Press 10/31/07)<br />
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287
Fuddruckers<br />
Headquarters<br />
5700 Mopac Expressway South Suite C300, Austin, Texas 78749 USA<br />
Tel: (512)275-0400 Fax: (512)275-0670<br />
www.fuddruckers.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 373,000 370,000 340,270<br />
Company-owned ($000) 190,000 190,000 189,249<br />
Franchised ($000) 183,000 180,000 151,021<br />
U.S. Number of Units 240 243 240<br />
Company-owned 124 127 132<br />
Franchised 116 116 108<br />
International Sales ($000) 25,000 15,000 2,319<br />
International Units 26 24 1<br />
Average Sales/Unit ($000) 1,500 1,500 1,418<br />
Concept Positioning |<br />
Fuddruckers operates and franchises a 250-unit chain of self-service upscale quick-casual hamburger restaurants that appeal<br />
to a broad audience. Stores are open daily from 11:00 a.m. to 11:00 p.m. and have a “kids eat free” program Monday–<br />
Thursday after 4:00 p.m. Food is cooked to order from fresh ingredients.<br />
Restaurants are freestanding or within a shopping center and range from 4,800–8,000 sq. ft., with seating for 160–300. The<br />
typical Fuddruckers has an exhibition food preparation area that includes a bakery and a butcher shop where customers can<br />
see bakery goods being made and meat being cut and ground. Another area has an open grill where items are cooked. It also<br />
includes a display area for customer garnishing of entrées as well as the dining area with tables and booths. Some have<br />
separate bar and outdoor patio areas. Décor will vary, as well as exteriors, although the latter is easily identifiable with a<br />
backlit yellow awning. However, new units will incorporate a standard exterior highlighting its Texas heritage. Fuddruckers has<br />
also co-branded units with La Salsa Fresh Mexican Grill, a limited-service Tex-Mex concept.<br />
The company plans to expand its new prototype, the six-unit Fudds in the City concept, into metropolitan areas in Houston,<br />
Boston, Los Angeles and New York. Units will average approximately 3,000 sq. ft. and seat 100 guests. The company has<br />
also expanded its new Fudds Express concept into airports, casinos, universities, museums and sports stadiums. With about<br />
500 sq. ft. of space, the concept serves a limited menu of burgers, hot dogs, chicken sandwiches and small salads.<br />
Headquartered in Austin, TX, Fuddruckers was incorporated in 1979 by Philip J. Romano, the owner and operator of finedining<br />
restaurants in San Antonio and Florida. The first restaurant opened in March 1980 in San Antonio. In August 1983, the<br />
first franchised store opened in Baton Rouge. The following November, the company made an initial public offering. In mid-<br />
1997, then parent Daka International was acquired by Compass Group PLC and its restaurant holdings spun-off into a new<br />
publicly held company, Unique Casual Restaurants. In mid-1998, Unique sold the chain to King Cannon Inc. In late-2003,<br />
Fuddruckers purchased the Koo Koo Roo poultry chain from Prandium. In 2006, Fuddruckers announced plans to buy several<br />
Pat & Oscar's units. Terms were not disclosed.<br />
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288
<strong>Menu</strong> Positioning |<br />
Fuddruckers' menu features hamburgers, sandwiches, salads, soup and chili, chicken, platters, sides and desserts. Signature<br />
items include the 1/3– or 1/2–lb. hamburger, cooked to order on a black iron grill and served on a freshly baked bun. Specialty<br />
burgers include the Inferno Burger—prepared with jalapeños, onions, and Red Hot; the Works burger—smokehouse bacon,<br />
mushrooms and American cheese. Restaurants also feature make-your-own specialty burgers with toppings like guacamole,<br />
chili, grilled mushrooms, smokehouse bacon and a variety of cheeses. Other popular menu selections include salads, such as<br />
the Chicken Florentine and Asian Chicken salads; and items such as its Red Hot Buffalo chicken sandwich, Fish ‘n Chips,,<br />
onion rings or Frings and BBQ Beans. A kids’ menu is available. <strong>Menu</strong> prices range from $1.99–$9.99. Checks average $7.75.<br />
Personnel |<br />
Erik Rausch, V.P. of Purchasing<br />
Alan Watts, V.P. of Operations<br />
Matt Pennek, President<br />
Camille O'Hara, Marketing Manager<br />
Fuddrucker’s has named Ralph Flannery its new chief operating officer. Flannery is a 23-year franchisee, whose Fuddrucker’s<br />
units operate in Minnesota, New Jersey, New York and Pennsylvania. (Nation’s Restaurant News 6/25/07 p180)<br />
News & Other |<br />
Fuddruckers ex-employee Bradley Gilbert has been charged with Internet fraud in Bethlehem, PA. According to an affidavit,<br />
Gilbert’s e-mail address was traced to 107 transactions made on Fuddruckers’ restaurant bank account through an online<br />
billing site. Transactions totaling $3,196 were reportedly made at pornographic websites. (Themorningcall.com 11/8/07)<br />
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289
Furr's Family Dining<br />
Headquarters<br />
2701 East Plano Parkway Suite 200, Plano, Texas 75074 USA<br />
Tel: (214)291-2900 Fax: (214)291-2467<br />
www.furrs.net<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 115,000 114,000 118,000<br />
Company-owned ($000) 115,000 114,000 118,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 55 54 57<br />
Company-owned 55 54 57<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,075 2,050 2,070<br />
Concept Positioning |<br />
Furr’s Family Dining, formerly known as Furr's/Bishop’s Cafeterias, is a major operator of limited service cafeterias in the U.S.<br />
Furr’s Family Dining offers casual and affordable buffet-style dining, with a concept and price point that appeals to budgetconscious<br />
diners and families seeking traditional American comfort food. All of its locations are open seven days a week for<br />
lunch and dinner, and a few also serve breakfast. Food is prepared for serving by each individual cafeteria. Although patrons<br />
serve themselves at the buffet, a dining room attendant is also available to help with a tray and to offer complimentary refills of<br />
coffee and tea. Buffet Partners LP is the parent company of Furr’s Family Dining, which are 100% company owned. There are<br />
over 55 units located in seven U.S. states: Arizona, Colorado, Florida, Kansas, New Mexico and Oklahoma.<br />
Units are either freestanding or located in endcaps adjacent to shopping malls. In 2000, the company unveiled a revamped<br />
prototype under the name Furr’s Family Buffet—now known as Furr’s Fresh Buffet. The 11,000-sq.-ft. unit features an updated<br />
exterior design and seats 420 customers. However, most units average 10,000 sq. ft. and have the seating capacity to<br />
accommodate 200–300 customers. Interiors of Furr's units feature carpeting and a center hearth. Most units differ in design,<br />
but all share a homey atmosphere which is created by earth-tone colors, beamed ceilings, patterned wall coverings, carpeting,<br />
chandeliers, and shirred curtains and side-drapes at the windows. Over the past several years, the company has spent over<br />
$30 million on capital expenses to maintain and remodel existing units.<br />
Furr's Cafeterias was first established in 1946 by brothers Roy and Key Furr with the first location in Hobbs, NM. Bishop<br />
Buffets was founded in 1920. Acquired together in 1986, Furr’s/Bishop’s Cafeterias operated 50-plus locations throughout the<br />
South. Slumping sales forced Furr's to file for Chapter 11 bankruptcy in late-2003, resulting in a sale of its Bishop’s units.<br />
Backed by Cardinal Investment, Buffet Partners LP acquired Furr's for $30 million in 2003. Dynamic Foods, based in Lubbock,<br />
TX, is also operated by the company and provides about 85% of the food and supplies required in its units. Dynamic also sells<br />
pre-cut produce, bakery items, meats and seafood and various prepared foods to outside customers. Immediate and long-term<br />
expansion goals call for continued growth in the South as well as states in the western U.S.<br />
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290
<strong>Menu</strong> Positioning |<br />
Furr's Family Dining locations are open seven days per week and offer breakfast, lunch and dinner feature. The menu offers<br />
more than 100 items, all located on a serving line. Selections include soups, salads, entrées, sides, bread and desserts.<br />
Popular entrées include Baked Fish with Lemon Herb, Beef Enchiladas, Salmon with Garlic Lobster, Buffalo Chicken Fritters,<br />
Carved Roast Beef, Chicken Teriyaki and Spaghetti & Meatballs. At one time, units serve dozens of varieties of soups, salads,<br />
entrées—including chicken, beef, fish, seafood and pastas, vegetable-based side items, breads and 12–25 desserts—<br />
including fresh baked pies, cobblers and cakes. Breakfast items include biscuits with gravy, eggs, fried salt pork, sausage,<br />
bacon, pancakes, fresh fruit and juices. Salads choices include Seapreme salad, broccoli and cauliflower salad, carrot raisin<br />
salad, cucumber salad, English pea salad, guacamole salad and potato salad. All locations have both fixed all-you-can-eat<br />
and a la carte pricing. No alcohol is served. Children and seniors are not offered a separate menu, but do dine at a reduced<br />
rate. <strong>Menu</strong> prices range from $6.09–$7.39. Checks average $10.63.<br />
Personnel |<br />
Beth Tay, V.P. of <strong>Menu</strong> Development<br />
Steve Barnhill, CEO<br />
Dave Siebert, CFO<br />
Sam Tyeatt, V.P. of Operations<br />
Jill Laird, V.P. of Marketing<br />
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291
Gloria Jean's Coffee<br />
Headquarters<br />
28 Executive Park Suite 200, Irvine, California 92614 USA<br />
Tel: (949)260-1600 Fax: (949)260-1610<br />
www.gloriajeans.com<br />
Ownership: Public<br />
Segment: Limited Service Coffee/Beverage<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 93,000 92,117 91,647<br />
Company-owned ($000) 30,000 31,890 31,617<br />
Franchised ($000) 63,000 60,227 60,030<br />
U.S. Number of Units 200 201 200<br />
Company-owned 52 62 56<br />
Franchised 148 139 144<br />
International Sales ($000) - 98,500 95,586<br />
International Units - 295 282<br />
Average Sales/Unit ($000) 445 433 458<br />
Concept Positioning |<br />
Gloria Jean’s Coffee is the nation’s second-largest operator of specialty coffee chains. The company operates 200 locations<br />
across the U.S., 148 of which are franchised. Gloria Jean’s Coffee is publicly owned by Diedrich International.<br />
Units are limited-service operations located in densely populated urban areas, generally in strip malls or near popular<br />
neighborhood centers. Units range in size from 1,200 to 2,000 sq. ft. Ambiance is created through the use of natural woods,<br />
soft color schemes and warm lighting. Some units offer additional outside patio seating. Coffeehouses now feature drive-thru<br />
service. Gloria Jean’s Coffee also operates kiosk outlets.<br />
Gloria Jean’s Coffee was founded in 1972 by Carl Diedrich. In 1999, it acquired Coffee People. In 2004, Diedrich Coffee<br />
signed an agreement with Jireh International to sell Gloria Jean’s international franchise operations for $16 million. The<br />
company is looking to grow through franchising nationwide and through company-owned units in Southern California.<br />
<strong>Menu</strong> Positioning |<br />
Gloria Jean’s is open for breakfast, lunch and dinner. It offers coffee in 75 varieties along with specialty coffee beverages such<br />
as espresso, cappuccino and café latte. Also offered are mochas, cocoas, teas and cold drinks. Freshly roasted and brewed<br />
coffees use 100% arabica coffee beans. Signature items include Carmelatte, café latte with caramel syrup and whipped<br />
cream, and White Chocolate Mocha, consisting of white chocolate, espresso, milk and whipped cream with sprinkles. Teas<br />
include chai and English Breakfast, green, Australian and decaffeinated varieties. Chiller flavors include Oreo Bash, coffee,<br />
milk and Oreo bits mixed with ice and topped with whipped cream and chocolate sprinkles, and Crème Brûlée, with caramel<br />
syrup, white chocolate, espresso and milk, blended with ice and topped with whipped cream and caramel. Fruit Chillers are<br />
available in mango, strawberry and peach flavors. Units also menu a line of coffee ice cream for shakes and parfaits, as well<br />
as bagels, croissants, pastries and cakes. <strong>Menu</strong> prices range from 50¢–$4.50. Checks average $4.<br />
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292
Personnel |<br />
Matthew C. McGuinness, E.V.P. of Development<br />
Stephen V. Coffey, CEO<br />
Sean McCarthy, CFO<br />
Pamela Britton, COO<br />
News & Other |<br />
Diedrich Coffee reported for the first quarter ended September 20 a net loss of $164.6 million from a loss of $155.2 million for<br />
the same period last year. Revenues increased 25.1% to $642.2 million from $513.6 million. Same-store sales grew 0.4%.<br />
(Company Release 11/6/06)<br />
Diedrich Coffee Inc. reported for the second quarter ended December 13 a net loss of $21.2 million from a loss of $14.4 million<br />
for the same period last year. Revenues increased 16.2% to $91.6 million from $78.8 million. Same-store sales decreased<br />
0.9%. (Company Release 1/25/07)<br />
Diedrich Coffee Inc.’s common stock was acquired by Sequoia Enterprises LP. Sequoia acquired 955,229 shares for $3.80<br />
apiece from Westcliff Aggressive Growth LP; Westcliff Long/Short LP; Westcliff Partners LP; Westcliff Master Fund LP;<br />
Westcliff Foundation; Westcliff Fund LP; Westcliff Small Cap Fund LP; Westcliff Ventures Fund LP; and Harry Anna<br />
Investment Fund Inc. (Company Release 5/7/07)<br />
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published.<br />
293
Godfather's Pizza<br />
Headquarters<br />
2808 N. 108 st, Omaha, Nebraska 68164 USA<br />
Tel: (402)391-1452 Fax: (402)255-2687<br />
www.godfathers.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 342,500 332,000 310,000<br />
Company-owned ($000) 32,500 35,000 45,000<br />
Franchised ($000) 310,000 297,000 265,000<br />
U.S. Number of Units 617 595 570<br />
Company-owned 50 62 70<br />
Franchised 567 533 500<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 575 580 545<br />
Concept Positioning |<br />
Godfather's Pizza restaurants are family-oriented, quick-service operations serving lunch and dinner. Stores offer self-service<br />
dine-in, in addition to delivery and carryout.<br />
Units are typically located in shopping centers. Size varies from 2,600–3,600 sq. ft., with seating for approximately 135. Most<br />
locations feature video and pinball games. The customer base ranges in age from pre-teen to mid-30s, but advertising is<br />
targeted toward the upper end of the 18–34 age group.<br />
Founded in Omaha, NE, in 1973 by Willy Theisen and a partner, the Godfather's Pizza name was adopted in 1976 following<br />
Theisen's partnership buyout. In 1975, the chain offered its first franchise. The first international unit opened in late 1981.<br />
Godfather's went through several ownership changes in the mid-1980s. In 1988, a leveraged buyout led by current chairman<br />
Herman Cain was completed, forming its current ownership. Godfather’s locations can be found in over forty states. Future<br />
expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Godfather's menu features pizzas, oven-baked subs, spaghetti, appetizers, sides and beverages. Its signature item is its<br />
pizza— available in 10-, 12-, 14- and 18-inch sizes. Pizza crusts come in original, pan-style or thin style with a variety of 13<br />
toppings. Popular pizzas include: Super Combo—beef, pepperoni, sausage, ham, onions, extra cheese, black olives,<br />
mushrooms, green peppers and tomatoes; Super Hawaiian—ham, mozzarella cheese, bacon bits, pineapple and green<br />
peppers; and the Super Taco—taco sauce, mozzarella and cheddar cheeses, beef, shredded lettuce, black olives, tomatoes,<br />
onions and sour cream. Oven-baked subs are also offered, and include the Ham & Honey Mustard Pizzini, Uptown Turkey and<br />
Turkey Clubhouse. Appetizers include wings, breadsticks, cheese sticks, garlic bread, cheese bread and potato wedges. An<br />
all-you-can-eat buffet and salad bar is also available at select locations. Kids’ meals and Family Feasts, family size meals, are<br />
also available. <strong>Menu</strong> prices range from $8.99–$24.99 for pizzas, and $4.49–$6.99 for subs, spaghetti, appetizers and sides.<br />
Checks average $9–$10.<br />
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294
Expansion Plans |<br />
Godfather’s Pizza Inc. has opened a new headquarters/restaurant in Omaha, NE. For the first time, the company’s executives<br />
and its research and development kitchen will be under one roof. The headquarters/restaurant opened for business on<br />
October 30. (Omaha.com 10/31/06)<br />
Personnel |<br />
Jan Sammons, Director of Marketing<br />
Rick Ledwich, Director of Research & Development<br />
Ron Gartland, CEO<br />
Annette Sneckenberg, CFO<br />
News & Other |<br />
Godfather’s Pizza held its “Greatest American Pizza Party” for children at Girls and Boys Town. The company vowed to assist<br />
troubled families and at-risk children through its efforts of its restaurants and headquarters. (Company Web site 12/4/06)<br />
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published.<br />
295
Golden Corral<br />
Headquarters<br />
5151 Glenwood Ave., Raleigh, North Carolina 27612 USA<br />
Tel: (800)284-5673 Fax: (919)881-5252<br />
www.goldencorral.net<br />
Ownership: Private<br />
Segment: Limited Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,440,000 1,384,945 1,340,290<br />
Company-owned ($000) 365,000 374,612 367,919<br />
Franchised ($000) 1,075,000 1,010,333 972,371<br />
U.S. Number of Units 480 476 468<br />
Company-owned 120 123 120<br />
Franchised 360 353 348<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,250 3,180 3,197<br />
Concept Positioning |<br />
Golden Corral operates family buffet and grill restaurants offering “fresh” menu positioning. The privately held chain operates<br />
480 units across the U.S., 360 of which are franchised.<br />
All units are freestanding and feature a contemporary brick, wood and glass design. Sizes range from 5,200 sq. ft. to 10,000<br />
sq. ft., with seating for 190–450. The buffet offers steak every night, in addition to a large variety of other meats, hot<br />
vegetables and freshly baked breads. The chain has expanded its use of on-premise bakeries and custom cooking sites and is<br />
in the process of building out separate food stations to create a more efficient serving process. Mashed potatoes are made<br />
from scratch every night and food preparation is performed in an environment exposed to guests.<br />
James Maynard founded Golden Corral in 1973 in Fayetteville, NC. Expansion strategies include continued development of<br />
the buffet operations in areas with mass-market appeal. Most growth will be through franchised units.<br />
<strong>Menu</strong> Positioning |<br />
Golden Corral buffet restaurants feature extensive all-you-can-eat breakfast, lunch and dinner buffets. The breakfast buffet<br />
includes standards like eggs, hash browns, bacon, ham, sausage, grits, pancakes, cereal, yogurt, fruit and French toast.<br />
Lunch and dinner buffets feature cooked-to-order steak, chicken, seafood, vegetables, pastas, soups and pizzas. Chicken<br />
specials include fried chicken, rotisserie chicken and Bourbon Street Chicken. Other available meats include pot roast and<br />
meatloaf. Sides and soups include clam chowder, Timberline chili, baby carrots, green beans, macaroni & cheese, mashed<br />
potatoes, broccoli and cauliflower with cheese sauce. Every 15 minutes, piping-hot yeast rolls are served. The Brass Bell<br />
Bakery and Dessert Café feature homemade cakes and pies, cookies and brownies, puddings and ice cream. A kids’ menu is<br />
available. Senior citizens are offered discounted meals. <strong>Menu</strong> prices range from $7.95–$11.22. Checks average $10.<br />
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296
Expansion Plans |<br />
Del Taco and Golden Corral are looking at sites in Janesville, WI, also known as “Chainsville.” The Golden Corral unit would<br />
become the town’s biggest restaurant, while Del Taco would be smaller, at 2,538 sq. ft. with a drive-thru. The restaurants’<br />
applications were introduced to the city’s plan commission on July 2. Applications are scheduled for a public hearing on July<br />
16. (Gazetteextra.com 6/29/07)<br />
<strong>Menu</strong> Development |<br />
Golden Corral rolled out its Applewood Grill line, with four new menu selections. The items, which feature applewood bacon,<br />
include Sirloin Filet, Chicken Breast, Pork Loin and Carved Salmon. Guests can add one of the chain’s featured sides, such as<br />
Lettuce Wedge with Bacon Crumbles and Ranch Dressing, Cheddar Stuffed Potato, Smokey Cheese Potato Bake and<br />
Escalloped Apples with Bacon Crumbles. Golden Corral's (Company Website)<br />
Personnel |<br />
Dave Knitter, Franchise Development<br />
Anthony Michaels, CEO<br />
Paul Black, CFO<br />
Bill Hodden, V.P. of Marketing<br />
News & Other |<br />
Golden Corral reported for the second quarter ended December 12 same-store sales increased 0.6%. (Company Release<br />
1/16/07)<br />
Golden Corral observed Veterans Day by giving out free meals to U.S. military veterans November 12. Military Appreciation<br />
Monday, now in its sixth year at the restaurant chain, is the first Monday after Veterans Day. To date, Golden Corral has<br />
donated more than 1.5 million meals. (Company Website 11/12/07)<br />
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published.<br />
297
Great Steak & Potato Co., The<br />
Headquarters<br />
7730 East Greenway Rd. Suite 104, Scottsdale, Arizona 85260 USA<br />
Tel: (480)443-0200 Fax: (480)443-1972<br />
www.thegreatsteak.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 100,689 107,350 111,000<br />
Company-owned ($000) 477 475 1,000<br />
Franchised ($000) 100,212 106,875 110,000<br />
U.S. Number of Units 211 226 234<br />
Company-owned 1 1 1<br />
Franchised 210 225 233<br />
International Sales ($000) 6,400 5,200 2,000<br />
International Units 16 13 3<br />
Average Sales/Unit ($000) 477 475 475<br />
Concept Positioning |<br />
The Great Steak & Potato Co. is a chain of limited-service restaurants offering “meat and potatoes” as a fast-food option. The<br />
menu showcases steak sandwiches—including its famous Cheesesteak––baked potatoes, hand-cut fries, freshly squeezed<br />
lemonade and fresh salads. Its menu offerings appeal to customers looking for inexpensive yet hearty American fare. Owned<br />
by Kahala-Cold Stone, The Great Steak & Potato Co. operates 20 company-owned units while the rest of the chain is<br />
franchised. Great Steak & Potato is comprised of hundreds of units, which are located nationwide in more than 40 states, as<br />
well as Canada, the UK and the Middle East.<br />
Units are generally located in regional shopping center food courts, strip centers and airports. Units range in size from 400–<br />
3,000 sq. ft. with the average food court unit requiring 700 sq. ft. and the average in-line unit requiring 1,500 sq. ft. Most units<br />
offer counter service only, with seating provided in the food court area; the in-line units offer seating for 60 customers within<br />
each unit. Outlets feature glossy, tiled store fronts, polished stainless and wood fixtures. Colorful store graphics, menus and<br />
neon signage complete the interior and exterior design.<br />
In 1982, Nick Lanni, president and chief executive officer, opened the first Great Steak & Potato location in Dayton, OH.<br />
Patrick Lanni, the founder's brother is its current executive vice president. In 1985, the company incorporated as Nicar<br />
Management, Inc. The current chain brand name was adopted in 1994. Kahala Corp., now known as Kahala-Cold Stone,<br />
acquired the chain in 2004 for an undisclosed sum. The company plans an expansion of approximately 25 units per year. Its<br />
growth is now in nontraditional venues such as shopping mall areas, high-traffic strip centers, airports, college campuses and<br />
office buildings.<br />
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298
<strong>Menu</strong> Positioning |<br />
The Great Steak & Potato Co. features grilled steak sandwiches, baked potatoes, salads, fries and beverages for lunch and<br />
dinner; some units also serve breakfast. Signature items include genuine Philadelphia Cheesesteak sandwiches, served with<br />
onions and provolone cheese; fresh-cut French fries; freshly squeezed lemonade; chicken; ham and veggie “Philadelphias;”<br />
and baked potatoes with a variety of toppings. All sandwiches are served with mayo, lettuce and tomato and come in regular<br />
(7”) or large (12”) sizes. Potato toppings include broccoli, cheese, margarine, bacon, sour cream, chives and chili. Beverages<br />
include Pepsi products and freshly squeezed lemonade. A breakfast menu has recently been added to many units and<br />
includes several breakfast sandwiches that pair eggs and cheese with choice of meat. A kids’ menu is available. <strong>Menu</strong> prices<br />
range from $1.39-$9.59. Checks average $9.50.<br />
Personnel |<br />
Doug Ducey, CEO<br />
Walt Schultz, CFO<br />
John Brunn, V.P. of Purchasing<br />
Chris Henry, V.P. of Operations<br />
Kate Unger, V.P. of Marketing<br />
John Brunn, V.P. Research & Development<br />
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published.<br />
299
Green Mill Restaurant and Bar<br />
Headquarters<br />
3900 Northwoods Drive Suite 215, Arden Hills, Minnesota 55112 USA<br />
Tel: (651)203-3100 Fax: (651)203-3101<br />
www.greenmill.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 89,000 84,500 80,100<br />
Company-owned ($000) - - -<br />
Franchised ($000) 89,000 84,500 80,100<br />
U.S. Number of Units 33 35 30<br />
Company-owned - - -<br />
Franchised 33 35 30<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,650 2,600 2,540<br />
Concept Positioning |<br />
Green Mill Restaurant & Bar is a full-service, casual-dining varied menu chain. Green Mill serves up appetizers, pizza,<br />
sandwiches, burgers, salads and steaks to a broad demographic drawn to the concept for its generous portions, menu and<br />
friendly neighborhood pub atmosphere. Its restaurants offer dine-in, takeout, curbside to-go and catering. A privately held<br />
company, Green Mill Restaurant & Bar operates units in the Midwest—primarily in Minnesota—and is 100% franchised.<br />
Units are large, freestanding and located near shopping areas. The décor of the dining areas are fashioned out of cherrystained<br />
hardwood paneling that is graced with original artwork. While the main dining room features an open display kitchen, a<br />
brewery pub theme is carried throughout each unit, with historical brewery photos on the walls. The large and inviting bar area<br />
is situated around an authentic beer-brewing kettle. The Green Mill bar features a variety of drink specials and lively<br />
promotions that encourage guest participation.<br />
Green Mill Restaurant & Bar began as Green Mill Inn by Myron Roth in St. Paul, MN, in the 1930s. Purchased in 1975 by Chris<br />
Bangs, Larry Cardoni and David Bicanich, Green Mill began to thrive as a restaurant offering Chicago-style deep-dish pizza. In<br />
1979, the Green Mill Too was born on Hennepin Avenue in Minneapolis' trendy Uptown area. The Too continues to operate<br />
and is still the company's highest volume restaurant. In 1990, Green Mill started franchising and began expanding throughout<br />
the Midwest, namely Minnesota. The company has not disclosed any current expansion plans.<br />
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300
<strong>Menu</strong> Positioning |<br />
The menu at Green Mill features appetizers, salads, pizzas, calzones, sandwiches, burgers, steak, fish and chicken, pastas,<br />
desserts and beverages. Its signature item is the chain's award-winning Gourmet Pizza and Wings, available in seven<br />
varieties, including Chipotle, Tandoori, Dixie Chicken, Jamaican, Diablo and Jim Beam. Pizzas are available in medium (12”),<br />
large (14”) and x-large (16”) sizes with classic, deep dish, Low Calorie Wheat or Pescara crusts. Newly added menu items<br />
include Shrimp Tempura—lightly battered shrimp, deep-fried and served with Asian plum sauce; Mandarin Chicken Salad—<br />
grilled chicken, red onions, avocado, Mandarin oranges and honey-roasted cashews in a citrus vinaigrette; Shrimp Pesto<br />
Pizza—pesto, pine nuts, grilled shrimp, sun-dried tomatoes, Asiago, Parmesan and mozzarella cheeses; Ultimate Ciabatta—<br />
ham, turkey, roast beef, provolone and Cheddar cheese, red onions and roasted peppers on a hot or cold ciabatta bun;<br />
Absolut-ly Vodka Chicken—chicken breast with roasted garlic and sun dried tomatoes in an Absolute Citron vodka cream<br />
sauce, served with grilled vegetables and potato; and the Butternut Squash Ravioli with Asparagus—butternut squash ravioli,<br />
asparagus spears, sun-dried tomatoes, basil leaves, Asiago and Parmesan cheeses in a garlic cream sauce. Green Mill<br />
recently revamped its menu by adding over 10 new items, from its Chicken Strawberry Cashew Salad to its new Roasted<br />
Tomato Penne Pasta. Full liquor service is offered. A kids’ menu and takeout service are also available. <strong>Menu</strong> prices range<br />
from $10.98–$28.98. Checks average $12.75.<br />
<strong>Menu</strong> Development |<br />
Green Mill Restaurants added new appetizers including Buffalo Bites, Chipotle Queso Dip, Queso Nachos and Garlic Cheese<br />
Ciabatta Bread. (Company Website)<br />
Green Mill Restaurants rolled out Tornado Chillers Flavored Lemonades and Smoothies. The cold nonalcoholic smoothies,<br />
lemonades and teas come in a twisted "tornado" glass. (Company Website)<br />
Green Mill Restaurants has added two new salads to its menu. Selections are Asian Shrimp Salad, with grilled shrimp, red<br />
peppers, red onions, peapods and fried noodles, served over a chopped romaine lettuce mix and topped with sesame seeds,<br />
green onion garnish and Sesame Ginger dressing; and Chicken Pesto Salad, with grilled chicken, green and red onions,<br />
mozzarella cheese and diced tomatoes over chopped romaine lettuce and finished with Parmesan cheese and Pesto Ranch<br />
dressing. (Company Website)<br />
Green Mill Restaurants introduced an Eating Fit menu that features healthier alternatives. The items on the menu meet many<br />
of the requirements of popular diets. Selections include Greek Chicken Salad, Cilantro Lime Shrimp Salad, Thai Chicken<br />
Salad, Grilled Mediterranean Sandwich, Lemon Pepper Chicken and Low Calorie Chicken Pizza. (Company Website)<br />
Personnel |<br />
Chris Bangs, CEO<br />
Mary Jule, CFO<br />
Paul Dzubnar, V.P. of Operations<br />
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published.<br />
301
Ground Round Grill & Bar<br />
Headquarters<br />
500 U.S. Route One, Freeport, Maine 04032 USA<br />
Tel: (207)865-4433 Fax: (781)380-3207<br />
www.groundround.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 88,000 90,000 103,600<br />
Company-owned ($000) - - 10,600<br />
Franchised ($000) 88,000 90,000 93,000<br />
U.S. Number of Units 57 60 64<br />
Company-owned - - -<br />
Franchised 57 60 64<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,525 1,500 1,450<br />
Concept Positioning |<br />
The Ground Round Grill & Bar is a full-service, varied-menu restaurant chain. Run by the privately-held Independent Owners<br />
Cooperative LLC, Ground Round boasts a friendly atmosphere inviting to families with children. With an extensive menu of<br />
appetizers, entrees and cocktails, the chain additionally offers full liquor service. Ground Round Grill & Bar is 100% franchised,<br />
operating in more than 20 states in the U.S.<br />
Most units are freestanding and both located in suburban and metropolitan areas. Interiors present a light and airy look, with<br />
skylights and greenhouses, but a certain rustic flavor has been preserved from the original design concept with selected lighthearted<br />
artifacts described as “faux American.” Newer units have a more contemporary feel, with a tan, burgundy red and<br />
brick color scheme dominating. Due to an increasing customer base, the interior has been updated with an abundance of<br />
booths. The casual-dining chain offers table delivery, takeout and full bar service. The units average approximately 5,600 sq.<br />
ft. and seat 210 patrons. Two separate dining rooms are used and the main room is designed to appeal to families. Its<br />
separate adult bar and lounge area are important features; the area averages 1,400 sq. ft. with seating for 70 and accounts for<br />
15–20% of sales.<br />
The Howard Johnson Corp. opened the first Ground Round in 1969. In 1978, a major franchising drive was launched. In the<br />
1980s, it was included in several acquisitions and eventually fell under the ownership of GR Foods, Inc. In mid-1991, GR<br />
Foods became a publicly held corporation known as Ground Round Restaurants, Inc. In late 1997, Boston Ventures<br />
completed its buy out of the company, thereby taking it private. American Hospitality Concepts, Inc., operated the chain and<br />
for Chapter 11 bankruptcy in 2004 which led to the closing of 60 Ground Round locations. Subsequently, the company sold all<br />
franchise rights to a group of Ground Round franchisees in mid-2004. Recently the company announced the planned launch of<br />
nearly 10 new units.<br />
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published.<br />
302
<strong>Menu</strong> Positioning |<br />
The core menu at Ground Round features over 150 items of appetizers, soups and salads, steaks, ribs, chicken, pasta,<br />
seafood, fajitas, burgers and wraps, sandwiches, desserts and beverages. Signature items include the ½-lb Hamburger with<br />
lettuce, tomatoes, pickle chips on a country sourdough roll, served with french fries. Other favorites include Spinach &<br />
Artichoke Dip, Chinese Egg Rolls, Chicken Fresco Pasta, Orange Grilled Salmon and the Roasted Vegetable Wrap. The<br />
restaurant also features a line of “comfort food” meals including All American Pot Roast—slow-cooked and served with roasted<br />
garlic, red skinned mashed potatoes, gravy and vegetables; Cajun Shrimp Club-charbroiled Cajun shrimp, pepper bacon,<br />
lettuce, tomato and a special dipping sauce served on a bread with kettle-fried potato slices; Asian Chicken Salad—fried white<br />
meat chicken with fresh greens and vegetables in a sesame Oriental dressing with tortilla strips and toasted almonds. Popular<br />
desserts include Peanut Butter Pie and Cinnamon Dippers—triangle-shaped dough, fried and coated with cinnamon sugar,<br />
served with vanilla ice cream, strawberry sauce and hot fudge. Alcoholic beverages are served at all units. A kids’ menu is<br />
also available. <strong>Menu</strong> prices range from $2.99–$16.99. Checks average $7.52.<br />
<strong>Menu</strong> Development |<br />
The Ground Round introduced three new items: Grande Taco Salad, Southwest Sampler and Triple Fajitas. The Grande Taco<br />
Salad is comprised of greens, seasoned beef or chicken and black beans with tomatoes, a blend of cheeses, seasoned sour<br />
cream and pico de gallo and served with a side of salsa. The Southwest Sampler includes Texas Toothpicks, Mexi-skins<br />
(potato skins with chili, Jack cheese and jalapeños) and bacon Cheddar-Jack quesadilla wedges served with seasoned sour<br />
cream and chili con queso. The Triple Fajitas are grilled steak, chicken and Cajun shrimp served over peppers and onions.<br />
(Company Website 4/3/07)<br />
Personnel |<br />
Cindy Dunn, Director of Operations<br />
Shireen Shahawy, Marketing Director<br />
Debbie Sullivan, Purchasing Director<br />
Kevin Young, Purchasing Director<br />
Dan Scoggin, CEO<br />
Cindy Dunn, Operations<br />
Debbie Sullivan, <strong>Menu</strong> Development<br />
Debbie Sullivan, Coordinator of <strong>Menu</strong> Development<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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303
Hard Rock Cafe<br />
Headquarters<br />
6100 Old Park Lane, Orlando, Florida 32835 USA<br />
Tel: (407)445-7625 Fax: (407)445-7869<br />
www.hardrock.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 295,000 275,000 258,000<br />
Company-owned ($000) 230,000 225,000 210,000<br />
Franchised ($000) 65,000 50,000 48,000<br />
U.S. Number of Units 52 46 44<br />
Company-owned 38 38 36<br />
Franchised 14 8 8<br />
International Sales ($000) 625,000 600,000 560,000<br />
International Units 87 77 70<br />
Average Sales/Unit ($000) 6,200 6,100 5,900<br />
Concept Positioning |<br />
Hard Rock Cafe is a full-service, casual-dining operation specializing in American-style food and beverages served in a "rock<br />
scene" setting. The parent company of the Hard Rock Café is The Rank Group Plc. The restaurant offers an extensive lunch<br />
and dinner menu of entrées made from scratch everyday. Hard Rock Café attracts customers of all ages, including families.<br />
Many purchase merchandise such as t-shirts, jackets, hats and watches displaying the Hard Rock Cafe logo. Merchandising<br />
revenues account for some 50% of sales. In addition, it has begun expansion of the Hard Rock brand into music and television<br />
with its own record label, TV show and amphitheaters as well as lodging with the development of casinos, resorts hotels and<br />
beach clubs. Approximately 73% of the units are company owned; the remaining stores are franchised. The chain is<br />
international.<br />
Hard Rock Café Restaurants either freestanding structures or incorporated into urban shopping centers. Units range in size<br />
from 1,400–41,000 sq. ft. and generally seat around 200 customers.<br />
Interior design features multi-level seating, several bars, and a display of rock memorabilia—considered by Sotheby's to be the<br />
most extensive in the world—which circulates among the company's restaurants. The rock ‘n’ roll memorabilia collection<br />
includes 63,000 pieces valued at more than $31 million.<br />
Isaac Tigrett and Peter Morton opened the original Hard Rock Cafe in London in 1971. Morton sold his interest in the London<br />
operation in 1982, and the two men agreed to establish their own cafes in various parts of the world. In 1990, The Rank Group<br />
acquired Hard Rock International and in mid-1996, Morton sold his holdings, thereby unifying the chain's ownership. Hard<br />
Rock expects future growth to be accelerated by synergies between its Cafe brand and its hotels and casinos. In March 2006,<br />
Hard Rock International announced that it will develop a new hotel-casino in Atlantic City, NJ, for $1 billion. More than $1<br />
billion has been invested into Hard Rock Hotel openings in Chicago, Madrid, New York City and Biloxi, MS. In December<br />
2006, the Seminole Tribe of Florida announced its acquisition of Hard Rock Cafe International, becoming the first American<br />
Indian tribe to purchase a major international corporation. The deal was worth $965 million. The Hard Rock Café is continuing<br />
to expand worldwide.<br />
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<strong>Menu</strong> Positioning |<br />
Hard Rock Café is open for lunch, dinner, drinks and snacks. The menu features appetizers, salads, burgers, sandwiches,<br />
barbecue ribs, specialties, desserts and beverages. A popular appetizer item is Bloody Mary Shrimp—grilled shrimp served<br />
with Bloody Mary salsa and nacho cheese. Specialty menu items include Homemade HRC Nachos, HRC Burgers, Pig<br />
Sandwich, Twisted Mac and Cheese, Joe Perry's Quesadillas and the HRC Shrimp Fajitas. Other entree selections include<br />
Grilled Salmon served over penne with Alfredo sauce; and the Ahi Tuna Steak Sandwich, a popular mainstay at the chain's<br />
Hawaiian units, now added to the core menu. The chain also promotes its "Smokehouse" line, featuring slow-cooked<br />
appetizers and barbecue entrees like Hickory Smoked Chicken Wings. Desserts range from cheesecake and hot fudge<br />
brownies to Down Home Apple Cobbler and thick shakes. Full liquor service is available. Kids’ menu items are also available.<br />
<strong>Menu</strong> prices range from $3.50–$23.50. Checks average $25.50.<br />
Expansion Plans |<br />
Pink Taco is expecting to add one to two units a year and eventually have 150 restaurants. The chain, which was created by<br />
the family behind Morton’s and the Hard Rock Café, currently operates two units and another is set to open in Los Angeles in<br />
March 2007 at the Westfield Century City mall. Pink Taco is about 8,000-sq.ft. and seats 270 customers in an urban setting<br />
that features high-volume music and a graffiti-style take on Mexico. (Nation’s Restaurant News Online 12/11/06)<br />
Pink Taco, a two-unit Mexican cantina concept from Harry Morton, is opening its third location this year in Los Angeles. The<br />
chain already operates units in Scottsdale, AZ, and Las Vegas. Los Angeles-based Pink Taco, positioned as an upscale yet<br />
casual concept, boasts an authentic Mexican menu, complete with homemade tortillas and salsas. Pink Taco’s full bar, highenergy<br />
atmosphere, rock-n-roll background music and funky décor help make it a popular nighttime destination for younger<br />
adults. Morton, son of Hard Rock Café co-founder Peter Morton, envisions the eventual launch of 150 Pink Taco locations.<br />
(Nation’s Restaurant News p4 12/11/06)<br />
Hard Rock International plans to debut a 41,000-sq-ft. flagship café on the Las Vegas Strip. The three-story restaurant, slated<br />
to open in the new Showcase Mall development in 2009, will include a 700-seat restaurant, a concert venue and the chain’s<br />
largest retail shop. An outdoor deck overlooking the city will provide additional seating. This will be Hard Rock’s second Las<br />
Vegas location. The original café is located adjacent to the Hard Rock Hotel and Casino. (Nation’s Restaurant News 10/8/07)<br />
International Activities |<br />
Hard Rock Café is mapping out expansion into Asian, Eastern European and Latin American markets, specifically China,<br />
Hungary and India. The 120-unit casual-dining chain hopes to grow to 250 units around the world. In addition, the company<br />
plans to grow its hotel properties to a total of 90 with new international locations, beginning in Barcelona and Madrid with other<br />
European capital cities to follow. Owned by the Seminole Tribe of Florida, Hard Rock Café looks to open eight new restaurants<br />
and five new hotels per year until its international goals are met. Domestically, Hard Rock Café will continue expansion of its<br />
U.S.-based casino operations. (Sun-Sentinel.com 6/26/07)<br />
Personnel |<br />
Sean Dee, Chief Marketing Officer<br />
Mike Kneidinger, V.P. of Café Operations<br />
John Ott, V.P. of Design and Development<br />
Thomas Gispanski, V.P. of Finance<br />
Hamish Dodds, CEO<br />
Jeff Lynch, Purchasing Manager<br />
News & Other |<br />
Hard Rock has been purchased by the Seminole Tribe of Florida for $965 million. The Hard Rock brand, which is owned by<br />
Britain’s Rank Group PLC, includes 124 restaurants worldwide, six Hard Rock Hotels, two Hard Rock Hotel Casinos, two Hard<br />
Rock Live concert venues and stakes in three unbranded hotels. The Seminole Tribe will acquire 56 licensed restaurants as<br />
well as agreements for the Hard Rock Live performance venues and five Hard Rock Hotels. The Seminoles already have and<br />
operate two lucrative Hard Rock Hotel & Casinos in Tampa and Hollywood, FL, as well as five other casinos in the state. (NRN<br />
Daily NewsFax 12/08/06; Wall Street Journal 12/07/06 pB2; Yahoo! News 12/07/06; USA Today 12/08/06)<br />
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305
Hard Rock Café International is being sued by The Cordish Co., which claims that Hard Rock did not allow it the opportunity to<br />
bid against the Seminole Tribe of Florida to acquire the chain. The Seminole Tribe recently acquired 124 Hard Rock<br />
restaurants, two Hard Rock Live performance venues, four Hard Rock Hotels, two casino-hotels and stake in three unbranded<br />
hotels for $965 million. The lawsuit alleges that Hard Rock fixed the bidding process in exchange for a promise from the<br />
Seminole Tribe to retain Hard Rock’s management. Hard Rock said that the allegations “have absolutely no merit.” (NRN Daily<br />
NewsFax 1/03/07, 1/04/07; Nation’s Restaurant News Online 1/5/07; Tampa Bay Online 1/03/07; AFX International 1/02/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
306
Hardee's<br />
Headquarters<br />
100 N. Broadway Suite 1200, St. Louis, Missouri 63102 USA<br />
Tel: (800)711-4274 Fax: (714)490-3630<br />
www.hardees.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,666,465 1,664,500 1,681,000<br />
Company-owned ($000) 634,264 587,000 586,000<br />
Franchised ($000) 1,032,201 1,077,500 1,095,000<br />
U.S. Number of Units 1,751 1,876 1,909<br />
Company-owned 696 664 680<br />
Franchised 1,055 1,212 1,229<br />
International Sales ($000) 124,000 96,000 124,000<br />
International Units 155 117 138<br />
Average Sales/Unit ($000) 938 874 881<br />
Concept Positioning |<br />
Hardee's is a major limited-service restaurant chain specializing in charbroiled Angus beef “Thickburger” hamburgers.<br />
However, its true strength is its breakfast menu, which generates approximately 40% of its overall revenues. The primary<br />
strategy in recent years has been the shift of Hardee’s as a discount burger joint to a premium hamburger chain with a<br />
streamlined menu. In addition to concept and menu redevelopment, parent company CKE Restaurants Inc. is also reducing its<br />
company-owned/franchised unit ratios. Hardee's Food Systems, a subsidiary of CKE, owns and operates about a third of its<br />
restaurants, while the rest are operated by franchisees. Hardee’s is largely located in the South, Southeast and Midwest.<br />
Units are usually freestanding and average 3,000–3,500 sq. ft. with seating for 75–100 persons. Most have drive-through<br />
windows and some are open 24 hours a day, primarily on weekends. Several prototypes are used throughout the system. In<br />
recent years, the chain has been revamped to strengthen its brand positioning. Hardee’s units nationwide have been<br />
converted to the Star Hardee’s format. The Hardee’s name has been retained while incorporating the Carl’s Jr. logo, including<br />
its famous star. Both chains have expanded the service format to include limited table service. Both Hardee's and Carl's Jr.<br />
have also introduced updated logos designed to appear more three-dimensional. Interior décor and packaging color schemes<br />
feature more a vibrant, jewel-toned palette. In addition, employee uniforms have been redesigned in a "hipper" style—all in an<br />
effort to position the two chains as being a bit more upscale than the typical fast-food outlet. The company has also<br />
implemented a remodeling program—upgrading kitchens, installing new menu boards and charbroilers and brightening the<br />
overall appearance of each location.<br />
Hardee's was founded by Wilbur Hardee, who opened the first unit in Greenville, NC, in 1960. The next year he was bought<br />
out by Leonard Rawls and Jim Gardner and then it was acquired by Imasco, Ltd. in 1973. In 1997, Imasco sold the chain to<br />
CKE Restaurants, Inc. In 1998, the company acquired Flagstar Enterprises Inc., its largest franchisee from Advantica<br />
Restaurant Group for $380.6 million and assumption of approximately $45.6 million in capital lease obligations. No specific<br />
expansion plans have been announced, but Hardee’s will continue to grow in the South, Southeast and Midwest, particularly<br />
through franchising.<br />
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307
<strong>Menu</strong> Positioning |<br />
Hardee’s menu serves all three dayparts with offerings ranging from breakfast sandwiches and platters, to burgers, sides,<br />
salads, sandwiches, desserts and beverages. The menu begins with signature breakfast sandwiches served on made-fromscratch<br />
biscuits. Options include the Loaded Omelet Biscuit, Chicken Fillet Biscuit, Monster Biscuit, Sausage Biscuit,<br />
Cinnamon & Raisin Biscuit and the new Blueberry Biscuit—covered with blueberry topping and sweet icing. Other favorites<br />
include breakfast burritos, pancakes, combo platters, Hash Rounds and grits. For lunch and dinner, its signature item is the<br />
Thickburger—an assortment of hearty-sized Angus beef burgers with traditional toppings of lettuce, tomato, onions and<br />
cheese on a sesame seed bun. Thickburgers are sold in varying sizes, including 1/3-lb., ½-lb. and 2/3-lb. Favorites include the<br />
original Thickburger, Mushroom & Swiss, Bacon Cheese, Grilled Sourdough, Low Carb and the Six Dollar Burger, weighing in<br />
at a half-pound. Besides burgers, customers can choose among several sandwiches, including the Big Chicken Fillet,<br />
Charbroiled Chicken Club, Big Hot Ham & Cheese and Hawaiian Chicken Sandwich. Sides include Natural-Cut French Fries,<br />
Crispy Curls. Desserts include apple turnovers, hand-scooped ice cream malts and shakes. Beverages include sodas,<br />
lemonade, orange juice, milk, hot chocolate, hot and iced tea and bottled water. <strong>Menu</strong> prices range from 69¢–$6.69. Checks<br />
average $6.<br />
Promotion Plans |<br />
Hardee’s launched a new commercial called “Girlfriend” featuring a good-looking waitress. Introducing its new Buffalo Chicken<br />
Sandwich, the commercial ends with a male customer getting busted by his girlfriend for taking too much interest in the<br />
waitress. (Company Release 2/26/07)<br />
Carl’s Jr. and Hardee’s restaurants across the country are encouraging employees and customers to join the company in a<br />
fundraiser to benefit breast cancer awareness called “Pink Star.” Customers are encouraged to donate to the cause at a local<br />
Carl’s Jr. or Hardee’s unit. The donations benefit the National Breast Cancer Foundation. The chains have been holding the<br />
fundraiser for three years. Customers who donate receive a coupon for a free beverage and a personalized pink Happy Star to<br />
place on the restaurant’s lobby display. The Happy Star is the logo for both Carl’s Jr. and Hardee’s. The campaign began on<br />
May 2 and will end on May 23. (Company Release 5/2/07)<br />
Hardee’s is facing backlash from the Tennessee Education Association for airing a racy ad campaign. The chain’s new ad<br />
features a sexy teacher making provocative moves in front of the class while two students rap to a song called “Flat Buns.”<br />
Hardee’s claims the ad is a spoof targeting young men who find this type of ad campaign appealing. The fast-food burger<br />
chain recently dealt with consumer complaints about a previous controversial ad featuring Paris Hilton. (FOX News Online<br />
9/9/07)<br />
CKE Restaurants Inc. has agreed to a national promotion for the feature film “Igor,” slated for release in October 2008. CKE’s<br />
more than 3,000 Hardee’s and Carl’s Jr. restaurants will offer “Igor”-designed premiums as part of their Cool Kids Combo<br />
meals. In-store displays for the movie and an online campaign are also part of the promotion. (Yahoo! Finance 11/16/07)<br />
<strong>Menu</strong> Development |<br />
Hardee’s has re-introduced its Chili Cheese Thickburger with Chili Cheese Fries. Both items were a part of the original<br />
Thickburger menu and will return for a limited time. The thickburger features a charbroiled 1/3 pound Angus beef patty topped<br />
with diced yellow onions, mustard, American cheese, pickles and chili on a seeded bun. It is priced at $3.49 or $5.78 for the<br />
combo meal. The Chili Cheese Fries are priced at $2.19. (Company Release 11/13/06)<br />
Carl’s Jr. and Hardee’s restaurants rolled out Mint Chip Hand-Scooped Ice Cream Shakes & Malts to its menu. The malts and<br />
shakes feature hand-scooped vanilla ice cream, mint syrup, chocolate flakes and milk blended to order and topped with<br />
whipped cream. Malt powder can be added to create a malt taste. The beverages are priced at $2.99. (Company Release<br />
11/06/06)<br />
Hardee’s has introduced its new Southwest Chicken Salad. The item features a tortilla shell “bowl” with lettuce, chicken breast<br />
strips, two red onion rings, chopped white onions, Cheddar cheese, tomatoes and Santa Fe dressing. It is priced at $3.99.<br />
(Company Release 11/20/06)<br />
Hardee’s added the Monster Biscuit, a breakfast version of its Monster Thickburger sandwich. The item features four slices of<br />
ham, three strips of bacon, a sausage patty, a folded scrambled egg and two slices of cheese between a biscuit. It is priced at<br />
$2.49 alone or $3.89 as part of a combo with a drink and hash browns. (Nation’s Restaurant News 1/30/07; NRN Daily<br />
NewsFax 1/17/07; Company Release 1/16/07)<br />
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308
Carl’s Jr. and Hardee’s restaurants rolled out Buffalo Chicken Sandwich featuring a crispy chicken filet covered in Frank's<br />
RedHot Sauce, topped with red onions, tomatoes, lettuce and ranch dressing, and served on a seeded bun. (Company<br />
Release 2/26/07)<br />
Hardee’s is testing the Burger Chef Big Shef hamburger, a hamburger that was on the chain’s menu in the 1970s and 1980s,<br />
in Terre Haute, Indianapolis, South Bend and Fort Wayne, IN, and Dayton, OH. The burger features two charbroiled ¼- lb.<br />
patties, shredded lettuce, American cheese and Big Shef sauce. The new burger will replace the Big Twin burger. The item is<br />
priced at $3 for 2 burgers. (Qsrmagazine.com 4/24/07)<br />
Hardee’s rolled out The Breakfast Club Sandwich, made with roasted turkey, bacon, shaved ham, American cheese and a<br />
folded-omelet-style egg served on grilled sourdough bread. The limited-time offer is priced at $2.59 a la carte or $3.99 as a<br />
combo with hash-brown rounds and a beverage, such as a small coffee. (NRN Daily NewsFax 4/25/07)<br />
Hardee’s introduced its new Patty Melt Thickburger on May 14. The burger features a charbroiled 1/3 lb. Angus beef patty with<br />
Swiss cheese and grilled onions on grilled rye bread. The item is priced at $2.99, or at $4.79 as part of a combo meal.<br />
(Company Release 5/14/07)<br />
Hardee’s and Carl’s Jr. will eliminate trans fats by the beginning of 2008. Instead, the chains will use 100% canola cooking oil.<br />
The taste and quality of the food will not be altered. (Bizjournals.com 6/6/07)<br />
Hardee’s introduced its new Blueberry Biscuit to its Made From Scratch Biscuits line. The new item features Hardee’s<br />
signature made-from-scratch biscuit filled with warm blueberry topping, with vanilla icing on top. The biscuit is priced at 99¢ for<br />
one, $1.59 for two and $3.59 for six. (Cnnmoney.com 7/16/07)<br />
Hardee’s introduced its new Orange Cream flavor to its line of Hand-Scooped Ice Cream Shakes & Malts. The new shake<br />
features orange syrup and vanilla ice cream. It is available for a limited time and is priced at $2.89. (Company Release<br />
7/17/07)<br />
Hardee’s launched its Natural Cut French Fries on August 20. The new fries are thicker, with the potato skin left on. The fries<br />
are available in small, medium and large sizes, priced at $1.29, $1.49 and $1.69, respectively. The chain planned a “Free Fry-<br />
Day” on August 24, offering a free small order of fries at all of its domestic units. (Company Release 8/20/07)<br />
Hardee’s added a Hawaiian Chicken Sandwich to its menu. The item features grilled pineapple and a savory-sweet teriyaki<br />
sauce on a charbroiled chicken breast, topped with melted Swiss cheese, red onion, tomato, lettuce and mayonnaise. (Yahoo!<br />
Finance 9/17/07)<br />
Hardee’s introduced its Country Breakfast Burrito. It features two eggs, sausage, bacon, diced ham, Cheddar cheese, hash<br />
browns and sausage gravy in a flour tortilla. Hardee’s priced the item at $2.69, and $4.09 for a combo. (Associated Press<br />
10/15/07)<br />
Hardee’s has brought back the Philly Cheesesteak Thickburger as a limited-time offer. The burger, which debuted April 2006,<br />
will sell for a suggested $3.99 each and $5.99 as part of a small combo meal at all Hardee’s restaurants. (Company Release<br />
10/31/07)<br />
CKE Restaurants Inc. now says its Carl’s Jr. and Hardee’s chains will be trans fat-free by the end of 2008. The company had<br />
slated the transition to canola oil in all its restaurants for early 2008, but says many restaurants require more time due to<br />
operational issues. (QSRmagazine.com 11/26/07)<br />
Franchise Activity |<br />
CKE Restaurants Inc. announced a Hardee’s refranchising program. The program involves more than 200 Hardee’s<br />
restaurants in several markets across the Midwest and Southeast. Refranchising the markets will accelerate its development<br />
and allows the company to focus its development efforts in its core markets. The company is in negotiation with the<br />
franchisees of the potential and existing locations for the sale of the restaurants. The company has already sold 25 Hardee’s<br />
restaurants. (PRNewswire 4/9/07)<br />
Hardee’s has sold 26 restaurants in Peoria and Quincy, IL, to Shree Krishna Food, LLC, as part of its strategic refranchising<br />
program. Shree Krishna has also committed to building six new Hardee’s units in the Peoria and Quincy markets over the next<br />
six years. To date, Hardee’s has sold 106 restaurants to franchisees and secured commitments for 44 new franchise units<br />
under development agreements in the Midwest and Southeast. (Press Release 10/30/07)<br />
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309
International Activities |<br />
Hardee’s has reintroduced its Big Twin double-decker burger. The burger features two beef patties, American cheese, lettuce<br />
and Thousand Island dressing. It is priced at $1.79 or in a two-for-$3 promotion for a limited time. (NRN Daily NewsFax<br />
12/19/06)<br />
Technology |<br />
Hardee’s is testing the use of mobile phone coupons at units in Indianapolis and St. Louis in an effort to boost traffic. Patrons<br />
can access buy-one-get-one-free coupons through their cell phones or PDAs after downloading software from the coupon<br />
vendor’s website. They will then be given a code to present to the cashier at participating units. (Nation’s Restaurant News<br />
Online 3/02/07)<br />
Hardee’s is offering buy-one-get-one-free coupons to consumers in St. Louis and Indianapolis via cell phone. Consumers who<br />
use Cellfire Inc. mobile-coupon service for cell phones and wireless computing devices are able to receive the coupons, which<br />
they can redeem at any of the 114 participating Hardee’s locations. The promotion started February 19. Other chains, such as<br />
T.G.I Friday’s, McDonald’s and Domino’s, have also used mobile-phone coupons. (Nation’s Restaurant News 5/24/07 p16)<br />
Personnel |<br />
Andrew F. Puzder, CEO/President<br />
Theodore Abajian, CFO<br />
Amir Siddiqi, COO<br />
Bruce Frazer, E.V.P. of Product Marketing & R&D<br />
John Dunion, E.V.P. of Supply Chain<br />
News & Other |<br />
Hardee’s reported for the third quarter same-store sales increased 5.6%. (Company Release 11/15/06)<br />
Hardee’s reported November same-store sales increased 5.6%. (Company Release 12/12/06)<br />
CKE Restaurants purchased 14 Hardee’s units in Georgia from a court-appointed receiver. The outlets were taken over by a<br />
court-appointed seller after CKE terminated a franchise agreement with Grandstar LLC. CKE now currently owns 54 Georgia<br />
restaurants and franchises another 46 in the state. (NRN Daily NewsFax 12/04/06; Company Release 11/29/06)<br />
CKE Restaurants has acquired two million shares from Pirate Capital LLC for $18.35 per share. CKE is the operator and<br />
franchisor of Carl’s Jr., Hardee’s and La Salsa Fresh Mexican Grill brands. (Company Release 12/29/06)<br />
Hardee’s No. 1, the original Hardee’s restaurant, will be demolished in favor of a city park in Greenville, NC. The restaurant<br />
opened in 1961 and offered 15¢ burger and 10¢ soft drinks. (Associated Press 3/12/07)<br />
Hardee’s Food Systems Inc. has invested $3.5 million on its new test kitchen, employee fitness center and office space in the<br />
Bank of America Tower in St. Louis. The office space is 10% larger than before, which gives the company room to grow.<br />
Hardee’s has also spent $1.2 million on its newest restaurant, which opened April 1 in St. Louis. In 2006, the company entered<br />
into a seven-year deal with the St. Louis Cardinals that includes promotions, signage and a restaurant on the upper<br />
concourse. (Bizjournals.com 4/13/07)<br />
Jack in the Box is being sued by CKE Restaurants for deceptive advertising involving its Carl’s Jr. and Hardee’s, as well as<br />
McDonald’s and Burger King. The complaint states that Jack in the Box advertisements imply competitors use cow anus to<br />
make Angus burgers. CKE seeks a court ruling blocking the ads. (MSNBC.com 5/29/07; NRN Daily NewsFax 5/29/07)<br />
Hardee’s franchisee Biscuits and Burgers LLC will acquire real estate in the Atlanta area with GE Capital Solutions, Franchise<br />
Finance. GE Capital financed $8.5 million for Biscuits and Burgers and completed the transaction in 45 days using a process<br />
called deal teaming. The financing includes a $2 million development line of credit and $6.5 million for the acquisition of 19<br />
Hardee’s locations in the Atlanta area. In the process of deal teaming, underwriting and closing occur at the same time.<br />
(Company Release 7/12/07)<br />
CKE Restaurants Inc. reported that Hardee’s August same-store sales rose 5% over year-before figures, but same-store sales<br />
at Carl’s Jr. were flat. (Forbes.com 8/22/07)<br />
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310
Hardee’s sold 34 restaurants in North Carolina to Boddie-Noell Enterprises as part of its ongoing strategic refranchising<br />
program. Boddie-Noell committed to developing eight new Hardee’s units in the market over the next five years. To date, the<br />
company has sold 80 locations to franchisees and secured commitments for 38 new franchise locations under development<br />
agreements in the Midwest and Southeast. (Company Release 8/28/07)<br />
CKE Restaurants Inc. reported combined same-store sales growth of 2.8% in October and 1.7% for the quarter ended<br />
November 5, compared to the same periods in 2006. The company’s Hardee's same-store sales rose 2.7% for the quarter,<br />
while its Carl's Jr. brand increased by 0.7%. CKE said sales at both of its brands benefited from a price increase implemented<br />
in October. Both chains also instituted an additional price boost at the beginning of November to offset higher operating costs.<br />
Total sales for the third quarter for company-owned restaurants were $273.2 million. (Yahoo! Finance 11/14/07)<br />
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311
Hooters<br />
Headquarters<br />
1815 The Exchange, Atlanta, Georgia 30339 USA<br />
Tel: (770)951-2040 Fax: (770)618-7032<br />
www.hooters.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 915,000 885,000 834,000<br />
Company-owned ($000) 240,000 230,000 231,000<br />
Franchised ($000) 675,000 655,000 603,000<br />
U.S. Number of Units 381 367 354<br />
Company-owned 120 115 117<br />
Franchised 261 252 237<br />
International Sales ($000) 85,000 75,000 51,000<br />
International Units 49 41 35<br />
Average Sales/Unit ($000) 2,275 2,250 2,251<br />
Concept Positioning |<br />
Hooters is a chain of full-service casual-dining restaurants specializing in chicken wings. It is known for the “Hooters Girls,”<br />
clad in bright orange short-shorts, who serve as waitresses and hostesses. The privately held chain operates 430 units<br />
worldwide, 261 of which are franchised.<br />
Hooters restaurants are largely freestanding with a lively, casual, beach-style atmosphere. They feature 1950s and 1960s<br />
jukebox music and large televisions tuned to sports broadcasts. The restaurants average 4,500 sq. ft. and seat 180-200<br />
people. Currently there are restaurants nationwide, as well as international restaurants in Argentina, Aruba, Austria, Brazil,<br />
Canada, Chile, England, Guatemala, Mexico, New Zealand, Singapore, Switzerland, Taiwan, Taipei and Venezuela. Takeout<br />
services are available.<br />
Hooters was opened in 1983, in Clearwater, FL by six business partners with no restaurant experience. Hooters of America<br />
acquired the rights to the restaurant concept from its founders in 1985. In 2003, Hooters of America expanded its concept,<br />
starting an airline that services the Southeast United States and Bahamas. Hooters Casino Hotel also operates in Las Vegas<br />
in the former Hotel San Remo Casino and Resort. The property houses a Hooters restaurant, as well as Dan Marino's Fine<br />
Food & Spirits, Pete & Shorty's Tavern and Hooters Beach Club sushi bar.<br />
<strong>Menu</strong> Positioning |<br />
Hooters is open for lunch and dinner, featuring chicken wings, appetizers, seafood, sandwiches, salads, sides, desserts and<br />
beverages. Its signature items are its chicken wings—served mild, medium, hot, “TMI” or “911.” Another favorite is oysters—36<br />
steamed oysters brought to a table in a galvanized bucket with oyster knife and garlic butter sauce for dipping. Other featured<br />
entrées include steamed clams, shrimp, steak and grouper sandwiches. Sides include fries, beans, potato salad and coleslaw.<br />
Beer and wine are served. <strong>Menu</strong> prices range from $4.99–$29.99. Checks average $15.<br />
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312
<strong>Menu</strong> Development |<br />
Hooters launched its Seafood Spectacular <strong>Menu</strong> for a limited time featuring Budweiser Crab Dip, Firecracker Shrimp, Rick Boy<br />
Sandwich and Baja Tacos. (Company Website)<br />
Hooters is rolling out a “Hooters Energy Drink” to grocery and c-stores nationwide this spring. The 16-oz. cans will feature<br />
images of Hooters women who work at the company. The drinks will be priced at $1.99 and will be available in regular orange<br />
and sugar-free berry flavors. (CNNMoney.com 2/15/07)<br />
Hooters announced the addition of five seasonal menu items created to celebrate the start of football season. New selections<br />
include: • Boneless Wings—an appetizer of white-meat chicken breast tenders battered to order and shaken in a choice of<br />
Hooters seven wing sauces • Training Burgers—four or six mini-burger appetizers topped with American cheese, mustard and<br />
pickles and served around fried-onion Tanglers • Double “D” Burger—1 lb. fresh ground beef topped with fried onion straws<br />
with a choice of cheese, bacon, sautéed onions and mushrooms • Sunday Pot Roast Sandwich—seasoned pot roast topped<br />
with sautéed onions and melted provolone cheese on Texas toast with a side of Dijon horseradish sauce • Double BLT—half a<br />
pound of hickory-smoked bacon topped with lettuce and tomato on Texas toast (Yahoo! Finance 8/30/07)<br />
International Activities |<br />
Hooters will open its first restaurant in Seoul, South Korea, on January 18. (Yonhapnews.com 12/20/06)<br />
Hooters of America is growing in international markets with a third outlet having just opened in Shanghai, China, and a 40-unit<br />
deal in Guam and the Philippines. (Nation’s Restaurant News Online 12/12/06)<br />
Hooters of America has inked a deal with Ilana and Ofer Ahiraz to open the first Hooters units in Israel this year. The<br />
franchisee plans to open more locations in the country. Hooters expects to open 17 international restaurants in 2007, including<br />
another unit in Australia, a fourth outlet in China and its first unit in Montreal, Canada. (Company Release 3/19/07)<br />
Hooters might open a new unit in Dubai this year. The unit, if developed, will be the chain’s first on the Arabian peninsula.<br />
Jamal al-Shaheen, a Kuwaiti investor, has the franchise rights for the location in Dubai. (Pr-inside.com 6/19/07)<br />
Hooters’ efforts to open a franchised location in Dubai, United Arab Emirates, have been denied by the city’s Department of<br />
Economic Development, which claims that Hooters did not follow the proper channels required to open a unit there. In<br />
addition, Hooters was rejected because its trademark scantily-clad waitresses would violate local laws that prohibit businesses<br />
that stand in contrast to the region’s religion, traditions and culture. (Gulfnews.com 6/27/07)<br />
Hooter’s is opening its first units in Israel and Spain. The new Hooter’s of Poleg is slated to open November 28 in Natanya,<br />
Israel. The unit is the first of three planned for the country. The new Hooter’s of Tenerife in Spain’s Canary Islands opens<br />
December 3, and is the first of 15 planned units for the country. The two openings bring the total number of international<br />
Hooter’s stores to 25. The chain plans to open an additional 32 locations in 2008, 19 of which will be international, with plans<br />
to enter the markets of Dubai, Thailand, New Zealand and Colombia. (Company Release 11/27/07)<br />
Technology |<br />
Hooters will launch a payment system that allows servers to process credit cards tableside in 2007. Hooters tested the system<br />
at an Atlanta branch before rolling it out systemwide. (NRN Daily NewsFax 11/02/06)<br />
Personnel |<br />
John Weber, V.P. of Franchise Operations<br />
Coby Brooks, CEO<br />
Rodney Foster, CFO<br />
Joe Humel, V.P. of Purchasing<br />
Scott Kinsui, V.P. of Research & Development<br />
Mike McNeil, V.P. of Marketing<br />
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313
News & Other |<br />
Hooters plans to launch a new system that allows servers to process a credit card without leaving a customer’s table or sight.<br />
The new system strives to thwart identity theft and will be launched in 2007. (NRN Daily NewsFax 11/2/06)<br />
Hooters of America expects to reach its projected goal of $1 billion in sales in 2006. The company credits its Hooters Resort<br />
and Casino in Las Vegas, its widely used credit card and new menu items for turning the brand into one that is more<br />
acceptable to families and women. Hooters is planning to add several new entrée combinations next year as well as<br />
promotional items set to hit at the start of National Basketball Association’s season. In other news, the company is currently<br />
remodeling several units. Fifteen of the chain’s oldest restaurants were renovated this past year, adding more seating and<br />
plasma TVs, higher ceilings and restroom upgrades. Hooters plans to remodel more in the next couple of years. (Nation’s<br />
Restaurant News Online 12/12/06; MSNBC.com 12/14/06)<br />
A Hooters location in Providence, RI, closed its doors the weekend of June 22. This unit was one of 12 Hooters locations in<br />
New England and upstate New York that had been operated by R.J. Fitz LP. The consortium, which includes New England<br />
Wings Inc. and Warwick Group Inc., filed for Chapter 11 protection last year. The company’s reorganization was transitioned to<br />
liquidation when it was ordered by a U.S. Bankruptcy Court judge into Chapter 7. There was also a request by First Insurance<br />
Funding Corp. to terminate its employees’ compensation coverage because a premium remained unpaid. (Providence<br />
Business News 6/25/07)<br />
Texas Wings Inc., a 43-unit Texas franchisee of Hooters of America Inc., has reclaimed its liquor license for a Dallas area<br />
restaurant after a two-year legal battle. The franchisee has dealt with a suspended liquor license at its South Arlington location<br />
since 2005, when the Partnership for Community Values organization took it to court in an attempt to close the business. The<br />
company continued giving away up to two beers per guest while fighting the court ruling. (NRN Daily NewsFax 10/10/07)<br />
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314
Houlihan's<br />
Headquarters<br />
8700 Stateline Rd. Suite 100, Leawood, Kansas 66206 USA<br />
Tel: (913)901-2500 Fax: (913)901-2651<br />
www.houlihans.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 249,310 220,057 208,627<br />
Company-owned ($000) 81,052 70,782 78,257<br />
Franchised ($000) 168,258 149,275 130,370<br />
U.S. Number of Units 90 82 75<br />
Company-owned 31 29 27<br />
Franchised 59 53 48<br />
International Sales ($000) 640 800 664<br />
International Units - 2 2<br />
Average Sales/Unit ($000) 2,991 3,081 2,805<br />
Concept Positioning |<br />
Houlihan’s is a full-service, casual dining chain. The chain is privately held by Houlihan’s Restaurants Inc., which also owns a<br />
number of other concepts including four upscale seafood concepts—all operated under different brand names—and J.<br />
Gilbert’s Wood-Fired Steaks. The chain operates 90 locations across the U.S., 59 of which are franchised.<br />
Some units are freestanding while the rest are located primarily in suburban shopping centers. Units average 2,991 sq. ft. and<br />
seat approximately 220 guests. The typical unit has a large bar and an outdoor patio that seats 50–75 guests. A new unit<br />
design format features modern art and warm colors.<br />
Houlihan’s first opened in Kansas City, MO, in 1972 by Gilbert Robinson. The chain has undergone several ownership<br />
changes through the years. In 1991, its parent filed for bankruptcy under Chapter 11 and emerged under the control of the<br />
Glazer Group. In 1998, the corporation was purchased by Scoggin Ventures (now HR Group Holdings), the investment arm of<br />
Dan Scoggin, founder of T.G.I. Friday’s. In January 2002, the company sought Chapter 11 bankruptcy protection and brought<br />
in Bob Hartnett, creator of Einstein Bros. Bagels, for a turnaround. It emerged from Chapter 11 in October 2002. New<br />
franchising strategies for Houlihan’s includes plans to launch a series of new restaurants inside of hotels in major metropolitan<br />
areas. The company anticipates the development of at least 50 of the hotel-based units nationwide over the next decade.<br />
<strong>Menu</strong> Positioning |<br />
Houlihan's is open for lunch and dinner and features appetizers, soups and salads, burgers, sandwiches, beef and pork,<br />
chicken, seafood, noodles, desserts and beverages. Newer items include Thai chili chicken wings and crunchy fish tacos.<br />
Specialty menu items include ‘Shrooms, jumbo mushroom caps stuffed with herb and garlic cream cheese, coated in panko<br />
bread crumbs, fried and served with creamy horseradish sauce; BBQ Salmon Salad, Atlantic salmon with barbecue sauce,<br />
greens, spiced pecans, Mandarin oranges, corn tortilla straws and sweet citrus vinaigrette; Creamy Gorgonzola Burger, with<br />
tomatoes, balsamic onions, Gorgonzola cheese and spring mix on a whole wheat bun; and a Chipotle Smoked Chicken<br />
Enchiladas, filled with tomatillo-marinated chicken, garlic, onions and queso fresco with spicy chipotle-smoked mozzarella<br />
sauce. Desserts include Caramel-Topped Apple Pie and Peanut Butter Cup Cheesecake. Full liquor service is available and<br />
features an extensive list of beer, wine, liquor and specialty drinks. Kids’ menu is available. <strong>Menu</strong> prices range from $8.99–<br />
$22.99. Checks average $20.<br />
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315
Personnel |<br />
Dan Clay, COO/President<br />
Dan Admire, Culinary Director<br />
Robert Hartnett, CEO<br />
Robert Ellis, CFO<br />
Murray Meikenhous, V.P. of Purchasing<br />
Jen Gulvik, V.P. of Marketing<br />
News & Other |<br />
Houlihan’s customers in Geneva, IL, were urged by local health officials to get precautionary injections to protect against<br />
hepatitis A. A restaurant employee tested positive for hepatitis A, a usually non-lethal viral disease that attacks the liver. Health<br />
officials estimate that about 4,000 people visited this location of the casual-dining chain in early January. About 630 customers<br />
have already accepted the health department’s offer of a free immunity-boosting globulin shot. (NRN Daily NewsFax 1/24/07)<br />
Houlihan’s Restaurants Inc. is thriving while other casual dining concepts are struggling. Houlihan’s financial results track four<br />
years of positive same-store sales and record revenue after a bankruptcy filing in 2002. In the next two years, the company<br />
plans to open 20–25 units each year. In the next 10 years, the company plans to open 300–400 new locations, 60% of them<br />
franchised. (Bizjournals.com 5/18/07)<br />
Houlihan’s Restaurants Inc. received more than $68 million to fund its new prototype expansion and remodeling. Wells Fargo<br />
Foothill Restaurant Finance provided a $40 million senior credit facility and Goldner Hawn Johnson provided $28 million in<br />
equity. The funds are being used to develop a new prototype with new menu formats, architecture, music and uniforms, along<br />
with a larger bar area and patio-style dining. The format debuted in Chicago in May 2006 and costs $2.2 million to build. In<br />
addition, the company stated it would focus on corporate restaurant growth and limit franchise growth. (Nation’s Restaurant<br />
News 6/4/07 p10)<br />
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316
Houston's<br />
Headquarters<br />
147 S. Beverly Drive, Beverly Hills, California 90212 USA<br />
Tel: (310)385-7343 Fax: (310)385-7119<br />
www.houstons.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 231,000 221,000 236,000<br />
Company-owned ($000) 231,000 221,000 236,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 33 33 37<br />
Company-owned 33 33 37<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 7,000 6,300 6,200<br />
Concept Positioning |<br />
Houston’s is a chain of full-service, upscale restaurants that appeals to a broad customer base. The chain is owned by<br />
Hillstone Restaurant Group Inc., which also operates the casual-dining chain Bandera. The company operates 33 companyowned<br />
Houston’s units across the U.S.<br />
Units are either freestanding or located in shopping centers, with the majority in suburban areas of major metropolitan<br />
markets. The average unit is 7,000 sq. ft. Soft lighting and natural materials such as wood, brick and stone give a casual and<br />
elegant ambiance. In an effort to further upgrade its image, Houston’s recently instituted a dress code as well as limits on cell<br />
phone use by patrons.<br />
Houston’s began in 1976 in Nashville, TN. Its founders, George Biel, Joe Ledbetter and Vic Branstetter gained experience with<br />
Steak and Ale operations prior to developing Houston’s. Currently, there are no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Houston's is open for lunch and dinner and features a broad-based menu of classic American fare specializing in made-toorder<br />
beef, ribs, fresh fish and chicken entrees. Also featured are burgers and sandwiches, salads, entrées, starters and sides,<br />
soups and desserts. Popular menu items include the Hawaiian Rib Eye, the Seared Tuna Steak and the Texas Burger.<br />
Signature soups, sandwiches and vegetarian platters are also available. Full liquor service is offered. <strong>Menu</strong> prices range from<br />
$13–$30. Checks average $23.<br />
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317
Personnel |<br />
Putum Gibson, Executive Chef<br />
George Biel, CEO<br />
Scott Ashby, CFO<br />
Putum Gibson, V.P. of Purchasing<br />
Tino Ciambriello, V.P. of Operations<br />
Anne Gibson, V.P. of Marketing<br />
News & Other |<br />
Houston’s Restaurant Inc. is in talks with Exeter Theatre Corp. to negotiate a lease to move into a building in Back Bay, MA.<br />
(Boston.bizjournals.com 7/27/07)<br />
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318
Huddle House<br />
Headquarters<br />
5901-B Peachtree Dunwoody Rd. Suite 450, Atlanta, Georgia 30328 USA<br />
Tel: (770)325-1300 Fax: (770)394-1970<br />
www.huddlehouse.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 224,000 204,000 200,000<br />
Company-owned ($000) 13,000 12,000 11,000<br />
Franchised ($000) 211,000 192,000 189,000<br />
U.S. Number of Units 417 404 392<br />
Company-owned 21 27 25<br />
Franchised 396 377 367<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 554 530 525<br />
Concept Positioning |<br />
Huddle House is a chain of full-service, family-style restaurants that rely heavily on a breakfast-based menu. The chain is<br />
owned by Allied Capital and operates 417 locations in the Midwest and Southeast U.S., 21 of which are company-owned.<br />
Units are largely freestanding and have an attractive Colonial brick edifice. Light, bright modern interiors offer both booth and<br />
counter service, with seating for 60–80 patrons. Its newer units have a diner feel, with interiors outfitted with green and white<br />
floor tiles, red counter stools and polished chrome red formica tabletops. All newly built Huddle House units utilize this newer<br />
prototype design. Featuring a redesigned exterior façade with terraced elevation lines, the prototype also has a brighter veneer<br />
and reverse-channel-lit signage. Given the natural fit, Huddle House has developed an aggressive co-branding program with<br />
travel plazas, truck stops and c-stores.<br />
Huddle House first opened in Atlanta in 1964 by the Sparks family. Franchising was started in 1966. In 2007, Huddle House<br />
was acquired by Allied Capital for $124 million. Currently, the company is seeking franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Huddle House is open for breakfast, lunch and dinner and features traditional breakfast favorites, including pancakes, waffles,<br />
meat and eggs, appetizers, sandwiches, burgers, chicken, desserts and beverages. Its signature items are its Big House<br />
Platters highlighting breakfast, barbecue pork, grilled chicken, hamburger steak, country fried steak and the Triple Decker<br />
hamburger. Breakfast is available all day. Some of the more popular selections are the Western Wrap, Philly Cheese Steak<br />
Omelet, Golden Waffle, Two Biscuits & Sausage Gravy and the All The Way—hashbrowns with diced onions, tomatoes, ham,<br />
peppers, topped with Cheddar and American cheeses. Units recently added “lite” menu items including: Grilled Chicken<br />
Salad—mixed greens with grilled or crispy chicken breast, diced tomatoes and eggs, Cheddar cheese and choice of dressing;<br />
Grilled Chicken Dinner—boneless grilled chicken breast marinated in zesty herb spices and comes with a choice of potato and<br />
tossed salad; and the Vegetable Beef Soup. Desserts range from cheesecake and chocolate cake to pecan and apple pie.<br />
Restaurants are open 24 hours. Kids' menu is available. <strong>Menu</strong> prices range from $2.09–$10.99. Checks average $9.<br />
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319
Expansion Plans |<br />
Huddle House plans to open 26 restaurants in Houston, TX, over the next three years. The first unit is expected to open in<br />
January. (bizjournals.com 12/15/06)<br />
Huddle House plans to double the number of restaurants already in existence in eight years. (Company Release 1/11/07)<br />
Huddle House opened its new test kitchen and research and development center in Atlanta. The center is designed to develop<br />
new menu items and increase quality and service. (Company Release 2/21/07)<br />
Huddle House plans to open eight restaurants in the Fort Worth market, where it hopes to eventually have 1,000 restaurants.<br />
Huddle House has 420 restaurants nationwide, mainly in the Southeast, and plans to have a total of 750 outlets within the next<br />
five years. (Star-Telegram 2/22/07)<br />
Promotion Plans |<br />
Huddle House announced the first-prize winner of its $100K Giveaway promotion. Phillip Weathers of Eastaboga, AL, won a<br />
trip to the 2008 Daytona 500, including airfare for two, hotel, a car rental and race tickets. The promotion’s grand prize of<br />
$100,000 went unclaimed because no contestant met the criteria of collecting all the letters from scratch-offs to correctly spell<br />
“HUDDLE.” (Franchising.com 11/26/07)<br />
Personnel |<br />
Susan Franck, Director of Marketing<br />
Phil Greifeld, CEO<br />
Tom Cossuto, CFO<br />
Mike Weimers, COO<br />
News & Other |<br />
Huddle House Inc. has been acquired by Allied Capital Corp., for approximately $124.1 million. Allied Capital is a Washingtonbased<br />
private equity firm with investments worth up to $4 billion, including companies such as Hot Stuff Foods and Meineke<br />
Car Care Centers. Huddle House operates 400 restaurants in 17 states in the Southeast and Midwest. (NRN Daily NewsFax<br />
12/22/06; Company Release 12/21/06; Atlanta Journal-Constitution 1/11/07)<br />
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320
Hungry Howie's Pizza & Subs<br />
Headquarters<br />
30300 Stephenson Hwy. Suite 200, Madison Heights, Michigan 48071 USA<br />
Tel: (248)414-3300 Fax: (248)414-3301<br />
www.hungryhowies.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 260,000 254,000 243,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 260,000 254,000 243,000<br />
U.S. Number of Units 540 523 496<br />
Company-owned - - -<br />
Franchised 540 523 496<br />
International Sales ($000) - 500 1,000<br />
International Units - 1 2<br />
Average Sales/Unit ($000) 485 500 507<br />
Concept Positioning |<br />
Hungry Howie’s Pizza & Subs is a limited-service delivery and carryout pizza chain. The chain is owned by Hungry Howie’s<br />
Inc., which operates 540 franchised units in the U.S.<br />
Units average 1,000-1,500 sq. ft. and are located primarily in high-traffic areas such as strip shopping centers. Units are<br />
decorated in yellow and boast a comfortable, relaxed atmosphere.<br />
Hungry Howie’s began in 1973 when James Hearn converted a 1,000-sq.-ft. hamburger shop into a carryout and delivery<br />
pizzeria. Franchising began in 1982 and the first franchise was awarded in 1983. A distribution arm, Hungry Howie’s<br />
Distributing Inc., opened its first commissary in 1986 in Michigan, followed by a commissary in Florida in 1987. Expansion<br />
plans call for the opening of 300 new stores through 2009, beginning in metropolitan Detroit and other areas throughout<br />
Michigan.<br />
<strong>Menu</strong> Positioning |<br />
Hungry Howie's is open for lunch and dinner and features pizzas, subs, salads, bread, wings and beverages. Its signature<br />
items are its pizzas with eight varieties of flavored crusts, including Original, Sesame Seed, Buttered, Cajun, Poppyseed, Rye,<br />
Butter Cheese, Garlic and Crisp N Thin. Pizzas are available in 10-inch small, 12-inch medium and 14-inch large sizes.<br />
Toppings include pepperoni, ham, pineapple, onions, green peppers and Cheddar and feta cheeses. Specialty pizzas include<br />
The Works—cheese, pepperoni, mushrooms, ham, Italian sausage, green peppers and onions; Taco—zesty taco meat, refried<br />
beans, lettuce, tomato and Cheddar cheese; and the Howie Maui—ham, pineapple, pepperoni and cheese. The Low Carb<br />
Crisp N’ Thin pizza has a wafer-thin crust and is covered with cheese and choice of toppings. Also offered are oven-baked<br />
subs in 10 varieties, such as Steak, Cheese & Mushrooms; Pizza Sub; Ham & Cheese; Veggie Sub; Italian Sub; and Turkey<br />
Melt. Four salads are available, including Antipasto, Chef, Garden and Greek salads. Sides include Howie Bread, topped with<br />
Parmesan cheese with zesty tomato sauce for dipping; 3-Cheeser Bread, topped with Parmesan, mozzarella and Cheddar<br />
cheeses with zesty marinara sauce for dipping; and Howie Wings, served Buffalo style. Beer and wine are available in select<br />
units. <strong>Menu</strong> prices range from $4.25–$15.99. Checks average $11.<br />
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321
<strong>Menu</strong> Development |<br />
Hungry Howie’s co-founder and CEO Steven Jackson tried to keep his chain’s signature flavored pizza crust recipe a secret,<br />
but other pizza chains are jumping on the flavored-crust bandwagon. Domino’s introduced a high-rising pizza crust in some<br />
regions with flavors such as garlic Parmesan and cheesy Cheddar, and Pizza Hut launched its Cheesy Bites Pizza. The<br />
flavored crust has been a Hungry Howie’s signature since 1983. (Pizzamarketplace.com 7/26/07)<br />
Personnel |<br />
Bob Cuffaro, Director of Marketing<br />
Kurt Geotzke, Director of Purchasing<br />
Sarah Jackson, CFO<br />
Phil Pfeiffer, V.P. of Operations<br />
Jeff Rinhe, V.P. of Research & Development<br />
Steve Jackson, President<br />
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322
Häagen-Dazs<br />
Headquarters<br />
5929 College Ave., Oakland, California 94618 USA<br />
Tel: (800)777-3397 Fax: (510)610-4409<br />
www.haagendazs.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 98,000 96,000 94,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 98,000 96,000 94,000<br />
U.S. Number of Units 243 240 237<br />
Company-owned - - -<br />
Franchised 243 240 237<br />
International Sales ($000) 180,000 175,000 173,000<br />
International Units 410 420 430<br />
Average Sales/Unit ($000) 440 435 425<br />
Concept Positioning |<br />
Häagen-Dazs is a limited-service chain of retail shops that offer super-premium ice cream as well as other frozen desserts.<br />
“Made like no other,” Häagen-Dazs has an extensive menu of decadent desserts including ice cream, sorbet, and cakes. Both<br />
Nestle and Dreyer’s Grand Ice Cream are the parent companies for Häagen-Dazs. Häagen-Dazs only operates a little under<br />
10% of its stores, the rest are franchised. The chain currently has locations in over 30 states as well as international chains in<br />
over 30 countries.<br />
Units vary among freestanding, strip centers and kiosks. Walk-up stores require 500–800 sq. ft., whereas larger dessert shops<br />
have a total area of 1,000–1,400 sq. ft. with seating for 20–36. Restaurants are usually open seven days a week and typically<br />
reflect operating hours of each site.<br />
Reuben Mattus and his mother started selling fruit ice and ice cream pops in 1928 from a horse drawn wagon in Bronx, NY. By<br />
1961, Mattus decided to form a new company, Häagen-Dazs, dedicated to his ice cream vision. Mattus’ daughter opened the<br />
first Häagen-Dazs shop in 1976. Mattus sold the company to the Pillsbury Company in 1983. At the end of 1988, Grand<br />
Metropolitan PLC acquired The Pillsbury Co. In late 1997, Grand Metropolitan merged with Guinness PLC and began<br />
operating under the name Diageo PLC. In 2001, General Mills acquired Pillsbury from Diageo and also gained control of the<br />
Häagen-Dazs brand and housed it in its Ice Cream Partners USA division. However, in 2002, Nestle purchased a 50% stake in<br />
the brand, gaining a 99-year license for the use of Häagen-Dazs in the United States. In 2004, General Mills sold its remaining<br />
interests in Häagen-Dazs to Dreyer's Grand Ice Cream for an undisclosed sum. The company has not disclosed any<br />
expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
The menu at Häagen-Dazs features super-premium ice cream as well as low-fat frozen desserts available in cones, cups,<br />
sundaes, sodas and shakes, ice cream sandwiches, takeout pints or quarts. Signature menu items include Cinnamon Dulce<br />
de Leche, Hawaiian Lehua Honey & Cream, and Dazzler Frozen Desserts. A variety of hand-dipped ice cream bars are also<br />
available. Approximately 80% of units offer “scooped frozen” yogurt in up to seven flavors and non-fat soft serve yogurt in six<br />
flavors. Ice cream is available in over 40 flavors. . <strong>Menu</strong> prices range from $3.25–$6.75. Checks average $7.<br />
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323
Personnel |<br />
Garry Rogers, CEO<br />
Steve Barbour, CFO<br />
Tony Sarsam, V.P. of Operations<br />
Tyler Johnston, V.P. of Marketing<br />
News & Other |<br />
Kimpton Hotels & Restaurant Group is premiering a Haagen-Dazs room design in San Francisco’s Hotel Triton. The room is<br />
designed in vanilla and caramel colors with a bed throw made from a waffle-cone textured fabric, and chocolate- and vanillascented<br />
candles are placed around the room. An ice cream cabinet, referred to as the “Sweet Spot,” contains complimentary<br />
pints of Haagen-Dazs flavors. (PROMOMagazine.com 6/19/07; NRN Daily NewsFax 6/19/07)<br />
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324
IHOP<br />
Headquarters<br />
450 N. Brand Blvd., Glendale, California 91203 USA<br />
Tel: (818)240-6055 Fax: (818)637-4730<br />
www.ihop.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
Chain Brands<br />
Applebee's Neighborhood Grill & Bar<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,116,885 1,971,164 1,867,093<br />
Company-owned ($000) 13,585 13,964 31,564<br />
Franchised ($000) 2,103,300 1,957,200 1,835,529<br />
U.S. Number of Units 1,290 1,230 1,186<br />
Company-owned 10 7 9<br />
Franchised 1,280 1,223 1,177<br />
International Sales ($000) 22,000 20,000 20,000<br />
International Units 12 12 12<br />
Average Sales/Unit ($000) 1,632 1,592 1,547<br />
Concept Positioning |<br />
The International House of Pancakes, or IHOP, is a full-service operation open for breakfast, lunch and dinner, some, around<br />
the clock. Breakfast items generate 45%–55% of sales and are served all day. The signature item, of course, is a line of<br />
pancake specialties, but the chain also serves a standard coffee shop menu. IHOP Corporation owns, operates, and<br />
franchises IHOP restaurants across the country.<br />
IHOP units feature blue roofs and awnings and an interior with a contemporary look. New restaurants average 4,900 sq. ft.<br />
with seating for 176. Larger kitchens are included in these units. In addition, conversion of existing restaurants from other<br />
concepts has further diversified its building design. The company also developed a 4,000 sq.ft., 132-seat prototype for smaller<br />
markets. All units now operate in a redesigned prototype featuring softer lighting, comfortable seating with fabric-backed<br />
booths and black-and-white photographs on the walls. Exterior elements included a faux-cobblestone entry and white trellis<br />
above the door. Under existing franchise agreements, IHOP operators are required to revamp every five years.<br />
Al Lapin opened the first International House of Pancakes in 1958 in Toluca Lake, CA. Ownership changed hands several<br />
times in the 1970’s and 1980’s. In May 1988, IHOP Corp. was acquired through a leveraged buyout by a group of investors<br />
(15 of whom were senior company managers). At the same time, an Employee Stock Ownership Plan (ESOP) was instituted<br />
for all full-time employees of one or more year's employment. In May 1991, IHOP went public.<br />
In 2003, the company revised its franchising model. Under the old model, IHOP would finance and open restaurants for<br />
franchisees. Now, franchisees are involved with restaurant development from the start. The company’s recently secured multistore<br />
and single-store franchising deals will facilitate the opening of more than 400 new franchised locations both in the U.S.<br />
and abroad. Domestic markets for these new stores include Arkansas, Iowa, Minnesota, Montana, New York, North Carolina,<br />
Ohio, North Dakota, South Dakota and Vermont. The company has also targeted Canada, Mexico and the U.S. Virgin Islands<br />
for international expansion.<br />
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325
<strong>Menu</strong> Positioning |<br />
Breakfast is the main attraction at International House of Pancakes, where diners can order from the morning menu any time<br />
of day. Signature items at IHOP include extensive varieties of pancakes, omelets, waffles, crepes, French toast, eggs, bacon,<br />
sausage, ham and corned beef hash. For years, its most recognizable offering has been the Rooty Tooty Fresh n' Fruity<br />
breakfast combination plate, which features eggs, choice of meat and two buttermilk pancakes topped with fresh fruit such as<br />
strawberries, bananas, blueberries or cinnamon apples. In addition, IHOP routinely promotes both new and limited-time-offer<br />
combo items for breakfast—most notably sweet, stuffed varieties of French toast and crepes, topped with fresh fruit and<br />
whipped cream. Other breakfast favorites include the Create-Your-Own-Omelet option, T-Bone Steak & Eggs and the<br />
International Passport—a combo breakfast served with choice of French or Swedish crepes. Lunch and dinner options include<br />
Southwestern Chicken Fajita Salad, Beer Battered Fish Sandwich, Monster Cheeseburger, Old Fashioned Pot Roast and Top<br />
Sirloin Dinner. Popcorn Shrimp, Crispy Chicken Strips and Beer-Battered Fish & Chips fall under its “By the Basketful” section<br />
of the menu, and are served with seasoned fries and garlic bread. Appetizers and snacks include the Appetizer Sampler,<br />
chicken strips, Italian Cheese Straws and onion rings. Desserts include Crispy Banana Caramel Cheesecake and ice cream<br />
sundaes. Kids can enjoy Funny Face Pancakes, cheese omelets, French toast and the Rooty Jr. for breakfast, as well as<br />
hamburgers, grilled cheese sandwiches and the Jr. Cod for lunch and dinner. In addition to soft drinks, sodas, juices, milk,<br />
coffee and tea, some units serve beer and wine. <strong>Menu</strong> prices range from $2.19–$14.99. Checks average $8.<br />
Expansion Plans |<br />
IHOP is expanding into the Pittsburgh market with 22 locations slated to open. Franchise group Romulus Restaurant Corp.<br />
inked a deal with the company to open the Pennsylvania locations. Romulus already operates 23 units in the Phoenix and<br />
Tucson markets. (Pittsburgh Business Times 12/15/06)<br />
IHOP will open its second Hawaii location on Oahu on February 5. The new restaurant will be managed by the same company<br />
that opened the first unit in Waikiki. (Company Release 1/29/07)<br />
Promotion Plans |<br />
IHOP teamed with Children’s Miracle Network and Miss America Lauren Nelson to give away one short stack of pancakes to<br />
customers on National Pancake Day, February 20. (Company Release 2/19/07)<br />
<strong>Menu</strong> Development |<br />
IHOP is rolling out Super Rooty Tooty Fresh ’N Fruity combos for a limited time only. The dish includes buttermilk pancakes<br />
with a choice of strawberry, apple-cinnamon or blueberry fruit toppings and whipped cream. The combo is available as a<br />
regular, big or jumbo combo with options including eggs, bacon, sausage and hash browns. (Company Release 10/30/06)<br />
Several chain restaurants are planning to reduce or eliminate trans-fats from their menus. Popeye’s Chicken & Biscuits will<br />
eliminate trans fats from its biscuits and introduce reduced transfat french fries by year’s end. Burger King will test a trans-fatfree<br />
frying oil sometime in the next 90 days. KFC will use a new soybean oil at its units in New York and Chicago, with plans to<br />
roll it out systemwide by spring 2007. IHOP plans to test trans-fat-free oils at its more than 1,200 units in the U.S. and Canada.<br />
Souper Salad restaurants are also planning to be trans fat free by year’s end. McDonald’s units in Australia have switched to a<br />
frying oil that is nearly free of trans fatty acids. The company did not say whether or not it would use the blend of canola and<br />
high-oleic sunflower oil at its U.S. locations. (Los Angeles Times 11/07/06; Company Release 11/07/06)<br />
IHOP has reintroduced its “All You Can Eat Pancakes,” available until February 18. The all-you-can-eat pancake combos start<br />
at $4.99 and include two pancakes, eggs, hash browns and a choice of sausage, bacon or ham. (Company Release 1/2/07)<br />
IHOP rolled out eight new menu items, including both lunch and dinner offerings. New options are: •Corn Cake Pancakes—<br />
cornmeal pancakes topped with sweet butter ($5.99) •Spinach & Mushroom Omelette—mushroom, fresh spinach, Swiss<br />
cheese and onions rolled in an omlette and finished with hollandaise and sliced tomatoes ($8.99) •Chicken Florentine<br />
Crêpes—chicken breast strips sautéed with mushrooms, onions, spinach and seasonings, rolled inside two crepes with Swiss<br />
cheese and finished with hollandaise ($7.99) •Garden Stuffed Crêpes—Swiss cheese and scrambled eggs, mushrooms,<br />
onions and spinach stuffed into two crepes and topped with tomatoes and hollandaise ($6.99) •Cheesy Ham & Egg Crepes—<br />
grilled ham, American cheese and scrambled eggs rolled into two crepes and topped with hollandaise ($7.49) •Ham & Egg<br />
Melt—grilled sourdough bread filled with scrambled eggs, Swiss and American cheeses and ham ($6.99) •BBQ Bacon<br />
Cheeseburger—a burger patty covered in a sweet and tangy BBQ sauce, with Cheddar cheese,bacon, lettuce, tomato and red<br />
onion, served on a Romano-Parmesan bun ($7.99) •Bacon & Egg Cheeseburger—a burger patty topped with crisp bacon,<br />
Cheddar cheese and one egg prepared over-medium, served on a Romano-Parmesan bun with lettuce tomato, red onion and<br />
mayonnaise ($7.99). (NRN Daily NewsFax 12/19/06)<br />
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326
IHOP introduced its new Cinn-A-Stacks Celebration featuring its pancakes, French toast and Double Cinnamon Swirl French<br />
Toast. The items are available now until April 22. (Company Release 2/26/07)<br />
IHOP launched a Cinn-A-Stacks Celebration through April. Items include: • Cinn-A-Sticks Pancakes–two buttermilk pancakes<br />
layered with cinnamon-roll filling, topped with rich cream icing and whipped cream • Cinn-A-Sticks French Toast–a stack of two<br />
slices of French toast with cinnamon-roll filling between the layers, finished with rich cream cheese icing and whipped cream •<br />
Cinn-A-Stacks Double Cinnamon Swirl French Toast–a cinnamon roll cut in half and grilled French-toast style, layered with<br />
more cinnamon-roll filling and topped with cream cheese icing and whipped cream. (Company Release)<br />
IHOP debuted Stuffed French Toast Treasures to its menu for a limited time. Varieties include Cherry-Vanilla Stuffed French<br />
Toast, warm French toast filled with vanilla custard and topped with warm black cherry compote, powdered sugar and creamy<br />
whipped topping; Banana-Caramel Stuffed French Toast, warm French toast filled with banana cream and finished with<br />
caramel, walnuts, sliced bananas, powdered sugar and creamy whipped topping; and Original Stuffed French Toast, warm<br />
cinnamon-raising French toast stuffed with sweetened cream cheese and finished with whipped topping, powdered sugar and<br />
strawberry, blueberry or cinnamon-apple topping. (Company Release 4/23/07)<br />
IHOP is promoting three new, seasonal Sweet Strawberry Serenade items for a limited time. Customers can choose<br />
Strawberry Funnel Cake, with powdered sugar, strawberries and whipped topping; Sweet Strawberry Pancakes, with cream<br />
cheese icing, glazed strawberries and whipped topping; and Strawberry French Toast, with glazed strawberries, powdered<br />
sugar and whipped topping. Starting at $5.99, the new strawberry offerings are available until September 2.<br />
IHOP is offering its Fruit Crêpe Fever for a limited time. Fruit Crêpe Fever features IHOP’s crêpes with fruit and sweet cream<br />
cheese filling, offered in black cherry, blueberry, strawberry and cinnamon-apple flavors. The crêpes are offered as part of a<br />
combo meal or a la carte. They are available until October 28. (Company Release 9/4/07)<br />
IHOP will eliminate trans fat from frying oils in all of its restaurants by the end of 2007. The company has been working with<br />
suppliers to find oils that will not affect the quality of its menu items. California-based IHOP operates or franchises 1,319<br />
restaurants in 49 states, the U.S. Virgin Islands, Canada and Mexico. (Nation’s Restaurant News Online 10/1/07)<br />
Franchise Activity |<br />
IHOP has inked franchise agreements for up to 20 domestic and international locations over the next eight years. The<br />
company will open restaurants in the states of Washington, Georgia and Virginia, the U.S. Virgin Islands and Ontario, Canada.<br />
One of the units will be the company’s first in the state of Vermont. The new agreements bring the total number of openings<br />
slated for the U.S., Mexico, and Canada to 388 units over the next 13 years, with options extending until 2019. (Foodservice<br />
Equipment Reports 10/06 p24; GlobeSt.com 10/24/06; Company Release 10/23/06)<br />
IHOP expects to add 61–66 new outlets in 2007. This includes 55-60 franchisees, three restaurants in Florida and locations in<br />
Mexico, Canada and the U.S. Virgin Islands. (Company Release 2/21/07)<br />
IHOP Corp. signed a development agreement with River Road Restaurant Group LLC to open seven restaurants in the<br />
Louisville market. The restaurants are expected to open during the next five years. (Bizjournals.com 3/23/07)<br />
International Activities |<br />
IHOP Corp. debuted its first restaurant in Monterrey, Mexico, in mid-January with Junior Foods S.A. Junior Foods is expected<br />
to open six additional units in Monterrey over the next four years. In related news, the chain plans to open the first restaurant<br />
of a two-unit development deal with Kip Enterprises Inc. on the island of St. Thomas in the U.S. Virgin Islands. (Company<br />
Release 1/23/07)<br />
Personnel |<br />
Julia Stewart, CEO<br />
Thomas G. Conforti, CFO<br />
Dennis R. Farrow, COO<br />
Richard Celio, V.P. of Research & Development<br />
Carolyn P. O'Keefe, CMO<br />
IHOP Corp.’s controller, Allen Arroyo, has resigned. Arroyo will leave the company no earlier than March 27 and might stay<br />
longer on a consulting basis. Arroyo has accepted a senior financial position at another company. (Company Release 3/14/07)<br />
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327
IHOP Corp. hired Greggory Kalvin as its controller, effective immediately. Previously, Kalvin served as Chief Accounting<br />
Officer for j2 Global Communications Inc. (Associated Press 8/13/07)<br />
IHOP Corp. plans to realign its organizational structure following its pending buyout of Applebee’s. Eight senior officials at<br />
Applebee’s International Inc., including president and chief executive Dave Goebel, will leave the company. In addition,<br />
several Applebee’s executives have not been asked to stay on after the merger, including chief financial officer Steve<br />
Lumpkin. IHOP says the realignments are necessary because Applebee’s will become a franchisor without any restaurant<br />
operations. (Nation’s Restaurant News Daily NewsFax 11/08/07)<br />
News & Other |<br />
Trans fats will be reduced or eliminated from some menu items at several chain restaurants. Popeye’s Chicken & Biscuits is<br />
eliminating trans fats from its biscuits and will introduce reducedtrans-fat french fries by year’s end. Burger King will test a<br />
trans-fat-free frying oil within the next 90 days. IHOP is also testing a trans-fat-free oil at its restaurants in the U.S. and<br />
Canada. KFC is using a trans-fat-free soybean oil at its units in New York and Chicago and will roll it out systemwide by spring<br />
of 2007. Souper Salad plans to be trans-fat-free by early December. McDonald’s units in Australia have switched to a frying oil<br />
that is nearly free of trans fatty acids. McDonald’s European units will cut the level of trans fats in frying oil to 2% by 2008.<br />
McDonald’s will use a blend of canola oil and high oleic sunflower oil at these locations. The company did not say whether or<br />
not it would roll out the oil to its U.S. locations. (Los Angeles Times 11/07/06; Reuters 11/07/06; NRN Daily NRN Daily<br />
NewsFax 11/01/06, 11/08/06, 11/10/06)<br />
IHOP is no longer asking to see ID before customers order. The rule was first enforced to discourage “dine and dash” thefts<br />
but has reversed the policy because of customer complaints. (Company Release 11/28/06)<br />
IHOP Corp. reported for the year ended December 31 same-store sales increased 2.5%. (NRN Daily NewsFax 1/15/07)<br />
IHOP Corp. will delay the completion of its refinancing that is underway. The transaction is expected to be completed after the<br />
company resolves its service marks and trademarks issues. (Company Release 2/9/07)<br />
IHOP Corp. reported for the fourth quarter ended December 31 net earnings rose 3% to $10.3 million from $10 million for the<br />
same period last year. Revenues declined 0.1% to $87.9 million from $88 million. Same-store sales increased 0.4%.<br />
(Company Release 2/21/07)<br />
IHOP inked a deal with a vendor to license select products to supermarkets and other retailers. The chain did not specify<br />
which products may be licensed. (Los Angeles Times 2/1/07)<br />
IHOP Corp. reported for the first quarter ended March 31, same-store sales increased 0.5%. This marks the company’s 17th<br />
consecutive quarter of positive sales growth. The company remains optimistic for the rest of fiscal 2007. (Company Release<br />
4/12/07)<br />
IHOP President and Chief Executive Officer Julia A. Stewart was to exercise options for 11,100 shares under an arranged<br />
trading plan. All shares were sold for $60 apiece. The other shares were traded for $27.33 apiece. The trading plan allows a<br />
company insider to set up a program in advance for such transactions. (Associated Press 5/3/07)<br />
IHOP Corp. made a bid of more than $2 billion to buy Applebee’s International Inc., the Bloomberg news service reported,<br />
citing an unidentified source. Both IHOP and Applebee’s refused to comment. IHOP has said it is considering the acquisition of<br />
a noncompetitive concept that is already franchising. (NRN Daily NewsFax 6/14/07)<br />
IHOP Corp. announced that Sunshine Restaurant Partners LLC, an affiliate of Argonne Capital Group LLC, acquired assets,<br />
development rights and operations of FMS Management Systems, Inc., the company’s largest area licensee. The agreement<br />
includes 148 IHOP locations in Florida and certain counties of southern Georgia and the exlusive right, pursuant to the area<br />
license agreement, to develop new IHOP restaurants within Florida and southern Georgia. Financial terms were not disclosed.<br />
(Company Release 7/9/07)<br />
Applebee’s International Inc. could pay IHOP $60 million if it backs out of its pending deal to be acquired. Both companies<br />
expect the $2.1 billion deal to close in the forth quarter of 2007. IHOP, based in Glendale, CA, operates 1,319 units and<br />
Overland Park, KS-based Applebee’s operates or franchises 1,943 casual-dining units. (Nation’s Restaurant News 7/30/07)<br />
IHOP Corp. will acquire Applebee’s International Inc. for $2.1 billion. IHOP management will focus on re-energizing Applebee’s<br />
system performance by driving marketing and operational improvements and plans to franchise many of Applebee’s 508<br />
company-owned units. (Phx.corporate-ir.net 7/16/07)<br />
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328
IHOP Corp. reported for the second quarter ended June 30 same-store sales increased 2.5%. For the first six months of fiscal<br />
2007, systemwide same-store sales grew 1.6%. (Company Release 7/12/07)<br />
IHOP Corp. entered into an interest-rate swap with Lehman Brothers Special Financing Inc. to avoid interest payments on<br />
asset-backed notes that are expected to be issued under a securitization program to finance IHOP’s purchase of Applebee’s<br />
International Inc. IHOP would be the fixed rate payer and Lehman Brothers Special Financing Inc. would be the floating rate<br />
payer. (Company Release 7/16/07)<br />
IHOP is returning to its traditional A-frame building design for newly constructed units nationwide. The slanted blue roof is a<br />
point of distinction for the chain, but restaurants changed to a more contemporary look with the company’s transition from<br />
International House of Pancakes to IHOP. There are currently 1,319 franchised and company owned locations nationwide.<br />
(NRN Daily NewsFax 7/24/07)<br />
IHOP CEO Julia Stewart plans to rejuvenate the Applebee’s chain, which IHOP recently purchased. Stewart plans to sell most<br />
of Applebee’s company-owned locations to franchisees and revamp the company’s look and menu to make it stand out. The<br />
process of revamping the brand could take until 2010. (Associated Press 9/27/07)<br />
IHOP Corp. reported for the third quarter ended September 30 same-store sales increased 2% over the same quarter of 2006.<br />
The increase marks the company’s 19th consecutive quarter of same-store sales growth. (Company Release 10/11/07)<br />
IHOP plans to sell most of Applebee’s company-owned stores to franchisees after completing its $2.1 billion acquisition of the<br />
bar-and-grill chain in late October. It also will make menu changes and update décor. (Yahoo! Finance 9/27/07)<br />
IHOP Corp. reported for the third quarter ended September 30 a loss of $11.6 million compared to a profit of $11.3 million for<br />
the same period last year. Revenues rose 3.8% to $91.4 million. Same-store sales increased 2.0%. (NRN Daily NewsFax<br />
10/24/07)<br />
Applebee’s International Inc. stockholders have voted to accept a merger agreement between the company and IHOP Corp.<br />
The announcement comes after a special stockholder meeting held October 30 in which more than 70% of shares voted in<br />
favor of the merger agreement. The transaction is expected to close by November 29. (Applebee’s International Inc. Press<br />
Release 10/30/07)<br />
IHOP Corp. has completed its acquisition of Applebee’s International Inc. for $25.50 per share in cash, or about $1.9 billion.<br />
The total value of the transaction comes to about $2.3 billion because of the assumption of Applebee’s debt and the<br />
transaction fees IHOP will pay. IHOP plans to sell most of Applebee’s company-run restaurants to franchisees, cut costs and<br />
complete sale-leaseback transactions on corporately owned real estate assets. IHOP also detailed for the first time that it<br />
planned to sell 475 of Applebee’s 510 corporate locations by the end of 2010. Select markets could be sold by early next year.<br />
(NRN.com 11/29/07)<br />
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329
Il Fornaio<br />
Headquarters<br />
770 Tamalpais Dr. Suite 400, Corte Madera, California 94925 USA<br />
Tel: (415)945-0500 Fax: (415)924-0906<br />
www.ilfornaio.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
Chain Brands<br />
Corner Bakery<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 132,500 132,600 110,000<br />
Company-owned ($000) 132,500 132,600 110,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 23 27 24<br />
Company-owned 23 27 24<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,300 5,200 4,325<br />
Concept Positioning |<br />
Il Fornaio is a full-service chain specializing in authentic Italian dishes. Restaurants feature housemade and imported pastas<br />
as well as fresh breads and bakery goods. Il Fornaio (America) Corp. owns and operates 23 full-service restaurants.<br />
Units are freestanding and range from 5,000–14,000 sq. ft. with seating for 76–282 guests. Restaurants provide catering and<br />
banquet dining menus. The ambiance is sophisticated, yet casual and features terracotta or European slate floors, marble<br />
bars, mahogany trim, hand-painted ceilings and fine art. An exhibition kitchen allows patrons to view preparation with its woodfired<br />
rotisseries, charcoal grills and wood-burning pizza ovens. Outdoor coffee/liquor bars and counter seats overlooking its<br />
pizza oven and exhibition kitchen also are used for additional seating.<br />
Il Fornaio (America) Corp. was founded in 1981 as a licensed operation of Il Fornaio, an Italian baking company. In 1987,<br />
Laurence B. Mindel acquired control of the company. Il Fornaio filed for an initial public offering of 1.5 million shares in 1997. In<br />
1998, the company developed a quick-service Risotteria unit adjacent to a Seattle unit. The Risotteria displays all cooking and<br />
offers menu items such as risottos, wood-oven pizzas, fresh pastas, gnocchis and salads. In 1999, Il Fornaio opened<br />
Canaletto Ristorante, a full-service restaurant serving dishes from Venice, in the Venetian Resort Hotel and Casino in Las<br />
Vegas. In 2001, Manhattan Acquisition Corp., an affiliate of Bruckmann, Rosser, Sherrill Co., completed its merger with Il<br />
Fornaio and took the company private. Il Fornaio’s wholesale bakeries began servicing Mimi’s Café in 2005. The company has<br />
not disclosed future expansion plans.<br />
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330
<strong>Menu</strong> Positioning |<br />
Il Fornaio's menu features a variety of pastas, pizzas, chicken and steak entrées as well as antipasti selections, soups, salads<br />
and desserts. Signature items include house-made or imported pastas and wood-fired pizzas. Popular dishes include Pizza<br />
con la Luganega—Italian sausage, roasted mixed bell peppers, mozzarella, oregano and tomato sauce; Paglia e Fieno con<br />
Gamberetti—homemade spinach and egg linguine, fresh rock shrimp, chopped tomato, garlic, red chili flakes and parsley;<br />
Scaloppine Caprese—veal scalloppine with tomato fillets, fresh mozzarella with roasted potatoes and sautéed vegetables; and<br />
Filetto Di Maiale—pork tenderloin, gorgonzola cheese, figs and port with roasted potatoes and sautéed spinach. The dessert<br />
special is the Ricotta cheesecake with orange and lemon zest, candied orange peel, cinnamon and pastry cream in a sweet<br />
pastry crust, served with cream anglaise. A rotating “Festa Regionale” promotion features food and wines from Italy’s 20<br />
different regions. Full bar service is available at each location. <strong>Menu</strong> prices range from $6.75–$29.95 and checks average<br />
$15–$25.<br />
Expansion Plans |<br />
Il Fornaio is opening its first restaurant on the East Coast. The outlet will open this summer at the Reston Town Center in<br />
Reston, VA, and will offer seating for 200 guests as well as a seasonal dining patio. There are 22 Il Fornaio restaurants<br />
located throughout California, Washington, Nevada and Colorado. (NRN Daily NewsFax 2/05/07; Company Release 2/01/07)<br />
Personnel |<br />
Diane Mavica, Director of Purchasing<br />
Mike Hislop, CEO<br />
Tammy Bradley, CEO<br />
Sean Mallony, CFO<br />
Michael Beatrice, COO<br />
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331
In-N-Out Burger<br />
Headquarters<br />
4199 Campus Dr. 9th Floor, Irvine, California 92612 USA<br />
Tel: (949)509-6200 Fax: (949)854-3675<br />
www.in-n-out.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 380,000 350,000 325,000<br />
Company-owned ($000) 380,000 350,000 325,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 203 200 189<br />
Company-owned 203 200 189<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,885 1,800 1,750<br />
Concept Positioning |<br />
In-N-Out Burger is the country's original limited-service, double-drive-thru hamburger chain and much of its operation has<br />
remained unchanged since its founding in 1948. The privately held chain operates 203 company-owned locations in Arizona,<br />
California and Nevada.<br />
Units are freestanding. Older units are simple glass-walled buildings of about 250 sq. ft. with two drive-thru windows and a<br />
walk-up window. Each location has an adjacent storage building of about 500 sq. ft. Newer locations also have two drive-thru<br />
lanes as well as indoor and outdoor seating. The interior design resembles a 1950s-era diner and features red and white<br />
ceramic tiles with palm trees near the ordering areas. The company's logo incorporates red letters with a yellow arrow.<br />
In-N-Out began in 1948 in Baldwin Park, CA, when Harry Snyder opened a drive-thru hamburger stand that included a<br />
customer ordering process through a two-way speaker box. The chain is expected to open at least 10 stores per year. There<br />
are no plans for franchising.<br />
<strong>Menu</strong> Positioning |<br />
In-N-Out is open for lunch and dinner, featuring classic American hamburgers, cheeseburgers, french fries, shakes and<br />
beverages. The menu offers a total of 15 items. Signature item is the Double-Double—two 100% pure beef patties, lettuce,<br />
tomato, spread, two slices of American cheese and onions, served on a baked bun. All burgers come with lettuce, tomato,<br />
spread, onions and cheese, served on a freshly baked bun. Shakes are available in chocolate, strawberry and vanilla flavors.<br />
Beverages include Coca-Cola products, lemonade, iced tea and coffee. <strong>Menu</strong> prices range from 65¢–$2.30. Checks average<br />
$4.<br />
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332
Personnel |<br />
Michelle Guzman, Director of Marketing<br />
Carl Van Fallet, Director of Operations<br />
Jay McGill, Director of Purchasing<br />
Howard Frantz, Director of Research & Development<br />
Roger Kotch, V.P. of Finance<br />
Mark Taylor, President<br />
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333
Iron Skillet<br />
Headquarters<br />
6080 Surety Drive, El Paso, Texas 79905 USA<br />
Tel: (915)779-4711 Fax: (915)774-7380<br />
www.petrotruckstops.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 120,000 119,000 122,000<br />
Company-owned ($000) 79,000 78,000 72,000<br />
Franchised ($000) 41,000 41,000 50,000<br />
U.S. Number of Units 55 53 53<br />
Company-owned 38 37 33<br />
Franchised 17 16 20<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,230 2,245 2,302<br />
Concept Positioning |<br />
Iron Skillet is a full-service chain of restaurants owned and operated by Petro Truck Stops. The chain specializes in homestyle<br />
American cooking and serves all of its meals in an individually sized iron skillet. The concept caters largely to truck drivers and<br />
motorists. All Iron Skillet restaurants are company-owned operations.<br />
Restaurants are located in Petro Truck Stop travel plazas along national highways. Units are attached to Petro's gas and<br />
convenience store properties. The average size of each restaurant is 3,500–4,000 sq. ft. with seating for 70–100 guests.<br />
Décor is relaxed and casual with a traditional country feel. Telephones are at every booth and table for customer use. In<br />
addition to a full menu, Iron Skillet offers an extensive buffet. Breakfast, lunch and dinner are served 24 hours a day, seven<br />
days a week.<br />
Petro Truck Stops operate across the country. The company founded its restaurant concept in 1975. Currently, more than 50<br />
stores are open in markets across the U.S. Future expansion has not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Iron Skillet restaurants feature a full-service menu in addition to a breakfast, lunch and dinner buffet that is open 24 hours a<br />
day, seven days a week. Signature items include steaks, including its 24-oz. T-Bone and the "King of the Road" Chicken-Fried<br />
Steak. Other favorites include burgers, fried fish entrées, chicken entrées, shrimp, sandwiches and chops. Popular breakfast<br />
items include Chicken Fried Steak & Eggs, a selection of Three-Egg Omelets and its French Toast Combo. All meals are<br />
served in an individually sized iron skillet. In addition to a regular full-service menu, Iron Skillet offers a buffet and soup, bread<br />
and salad bar. Monthly food specials feature selected dinner entrées at a lower cost. Iron Skillet also notes net carb counts for<br />
a few of its entrées for customers following a low-carb diet. Desserts include traditional offerings such as apple pie, ice cream<br />
and strawberry shortcake. No alcohol is served. No kids’ menu is listed. <strong>Menu</strong> prices range from $3.99–$12.99 for entrées.<br />
Checks average $10.<br />
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334
Promotion Plans |<br />
Iron Skillet introduced its new Breakfast Club. The club provides customers with its weekday breakfast buffet for $4.99 and a<br />
weekend buffet for $5.99. Memberships are on sale for $19.99. Members will receive the discounted buffet through December.<br />
(Company Website 3/27/07)<br />
Personnel |<br />
Stig Hansen, Director of <strong>Menu</strong> Development<br />
David McCLure, Director of Marketing<br />
John Ponczoch, Director of Operations<br />
Stig Hansen, Director of Purchasing<br />
Jack Cardwell, CEO<br />
Edward Escudero, CFO<br />
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335
Islands Fine Burgers & Drinks<br />
Headquarters<br />
5750 Fleet Street Suite 120, Carlsbad, California 92008 USA<br />
Tel: (760)268-1800 Fax: (760)918-1500<br />
www.islandsrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 175,000 155,448 137,672<br />
Company-owned ($000) 175,000 155,448 137,672<br />
Franchised ($000) - - -<br />
U.S. Number of Units 56 53 48<br />
Company-owned 56 53 48<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,200 3,100 3,100<br />
Concept Positioning |<br />
Islands Fine Burgers & Drinks is a full-service varied-menu restaurant specializing in burgers and Mexican fare. The privately<br />
held chain operates 56 company-owned locations in Arizona, California and Nevada.<br />
Units are largely freestanding and range from 5,300–6,000 sq. ft. with seating for up to 200 guests. The interior evokes a<br />
tropical beach atmosphere, while the exterior has California-casual influences. Takeout is available.<br />
Tony DeGrazier founded Islands in 1982 with the opening of the first restaurant in west Los Angeles. The chain was acquired<br />
by Chart House Restaurants (now Angelo and Maxie’s) in 1992. DeGrazier regained control of the company in 1996.<br />
Currently, the chain has no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Islands is open for lunch and dinner. Its menu features appetizers, soups, salads, chicken, soft tacos, burgers and beverages.<br />
Signature items are hamburgers in a variety of styles, including the Bleunami hamburger, topped with bleu cheese dressing,<br />
tomato, lettuce, red onion and crumbled bleu cheese. Popular items include the China Coast Salad, Northshore Tacos, BLT<br />
and Maui Burger. Sides include quesadillas and tortilla soup. Takeout service is available, as is a kids’ menu. <strong>Menu</strong> prices<br />
range from $3.99–$9.10. Checks average $10.25.<br />
Expansion Plans |<br />
Islands Restaurants opened its first Colorado restaurant in Boulder. The company plans to develop several more units in<br />
Colorado and has found a site in Westminster, due to open in late 2007. (Bizjournals.com 11/1/06)<br />
Islands Restaurants opened two new locations in Avondale, AZ, and Newbury Park, CA. (Company Website 4/10/07)<br />
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336
Personnel |<br />
Doung Collus, COO/President<br />
Tony DeGrazier, CEO<br />
Rob Richards, CFO<br />
Tim Perreira, V.P. of Purchasing<br />
Cyndy Darlington, V.P. of Marketing<br />
Lewis Jackson, V.P. of Development<br />
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337
J. Alexander's<br />
Headquarters<br />
3401 West End Ave. Suite 260, Nashville, Tennessee 37203 USA<br />
Tel: (615)269-1900 Fax: (615)269-1999<br />
www.jalexanders.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 137,700 126,617 122,918<br />
Company-owned ($000) 137,700 126,617 122,918<br />
Franchised ($000) - - -<br />
U.S. Number of Units 28 28 27<br />
Company-owned 28 28 27<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,908 4,644 4,700<br />
Concept Positioning |<br />
J. Alexander’s is a full-service, contemporary American restaurant with a casual-dining atmosphere. The menu consists of<br />
American-style fare with a contemporary twist, serving award-winning steaks, fresh seafood selections, soups, salads, burgers<br />
and sandwiches. J. Alexander’s is also famous for its prime rib of beef and baby back ribs, as well as its desserts made from<br />
scratch.<br />
Each J. Alexander's location features a different architectural design. Exteriors are made up of stone, stained woods and<br />
weathered copper. Interior ambiance is created with the use of slate, concrete, stone and glass. A patio-like garden seating<br />
area is used as a waiting area. Newer units have a more modern décor, with exposed steel, concrete and glass. Original<br />
artwork is the hallmark of each unit’s interior décor. While maintaining the garden seating, these restaurants also feature<br />
angled window wall projections for a more focused interior. Units are either freestanding or in mall locations and use<br />
approximately 7,400 sq. ft., with seating for 230 people. The restaurants are open for lunch and dinner from 11 a.m. to<br />
midnight.<br />
J. Alexander’s is a publicly owned corporation, formed in 1971 as Volunteer Capital Corporation, a Wendy’s franchisee. The<br />
founders consisted of three Nashville businessmen: Jack C. Massey, Earl Beasley Jr. and John Neff. The first restaurant<br />
opened in Nashville, TN, in 1991. Today, J. Alexander’s operates nationwide in Alabama, Colorado, Florida, Georgia, Illinois,<br />
Kansas, Michigan, Ohio, Tennessee and Texas. The company will continue to seek new sites in major metropolitan areas<br />
across the country.<br />
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338
<strong>Menu</strong> Positioning |<br />
J. Alexander's offers a varied menu for lunch and dinner in a relaxed and casual setting. The menu is presented in sections<br />
listing starters, salads, burgers and sandwiches, steaks and prime rib, fresh fish and seafood, specialties and beverages. J.<br />
Alexander’s boasts preparation techniques that emphasize quality and freshness; all salad dressings, soups, sauces and<br />
desserts are prepared from scratch. Signature items include Pasta La Louisiane— shrimp and scallops in a Cajun cream<br />
sauce over linguini and garnished with thyme; Penne Milano—sautéed chicken and mushrooms with homemade marinara<br />
sauce; Steak Brazzo—marinated tenderloin medallions of beef in Madeira mushroom sauce. Other items menued include<br />
hardwood grilled steaks, seafood, chicken, pasta, salads, soups, sandwiches and homemade desserts. Dinner orders are<br />
served with side items such as Maytag Bleu Cheese Cole Slaw, Orzo and Wild Rice, Smashed Potatoes, Loaded Baked<br />
Potatoes and Tequila Beans. Its full liquor service includes a wide selection of domestic and imported wine, beer and spirits.<br />
The chain is particularly known for his list of premium martinis. There is no separate menu for children. <strong>Menu</strong> prices range<br />
from $5.95–$24. Checks average $15.38.<br />
Expansion Plans |<br />
J. Alexander’s will open its first Arizona location next year at The Borgata in Scottsdale. The unit will be 12,075 sq. ft.<br />
(Azcentral.com 7/31/07)<br />
Personnel |<br />
Mary Bullock, Director of Purchasing<br />
James Filaroski, Director of Research & Development<br />
Lonnie Stout, CEO<br />
R. Gregory Lewis, CFO<br />
Ralph Carnevale, V.P. of Operations<br />
News & Other |<br />
J. Alexander’s reported for the fourth quarter ended December 31 net earnings increased 75% to $2.1 million from $1.2 million<br />
for the same period last year. Revenues grew 8.1% to $36.2 million from $33.5 million. Same-store sales rose 7.3%. For the<br />
year ended December 31 net earnings grew 30.6% to $4.7 million from $3.6 million for 2005. Revenues increased 8.7% to<br />
$137.7 million from $126.6 million. Same-store sales rose 5.2%. (Company Release 3/1/07)<br />
J. Alexander’s Corp. reported for the second quarter net earnings increased 34.0% to $953,000 from $711,000 for the same<br />
period last year. Revenues grew 4.2% to $34.7 million from $33.3 million. Same-store sales rose 4.3%. (Company Release<br />
7/30/07)<br />
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published.<br />
339
Jack in the Box<br />
Headquarters<br />
9330 Balboa Ave., San Diego, California 92123 USA<br />
Tel: (858)571-2121 Fax: (858)694-1592<br />
www.jackinthebox.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,731,750 2,599,000 2,528,000<br />
Company-owned ($000) 2,031,750 1,996,000 1,998,000<br />
Franchised ($000) 700,000 603,000 530,000<br />
U.S. Number of Units 2,079 2,049 2,006<br />
Company-owned 1,476 1,534 1,558<br />
Franchised 603 515 448<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,340 1,300 1,282<br />
Concept Positioning |<br />
Jack in the Box Inc. operates and franchises Jack in the Box, one of the nation’s largest hamburger chains. The limited-service<br />
chain operates thousands of restaurants in nearly 20 states. Its menu is targeted at the adult fast-food consumer and includes<br />
hamburgers, specialty sandwiches, salads and real ice cream shakes.<br />
The majority of units are freestanding, with several configurations seating 20–100. Restaurants also feature drive-thru service.<br />
Most Jack in the Box locations have been upgraded to feature new signs, menu boards and landscaping designs. An<br />
upgraded décor package includes softer lighting, a warmer color scheme, wood chairs instead of plastic and flat-screen<br />
televisions that play video skits. Jack in the Box started as a drive-thru-only concept; as the first major hamburger chain to<br />
develop the concept of drive-thru dining, it has always emphasized on-the-go convenience. Approximately 85% of guests buy<br />
their food at the drive-thru or for takeout. In addition to drive-thru windows, most restaurants have indoor dining areas and are<br />
open 18-24 hours a day. In 2002, Jack in the Box introduced a new co-branded concept that combined a full-size Jack in the<br />
Box restaurant with the company's proprietary brand of convenience store called Quick Stuff. Jack in the Box operates<br />
currently operates approximately 50 Quick Stuff locations, which include a major-brand gas station as well as a Jack in the<br />
Box.<br />
Robert O. Peterson founded Jack in the Box in San Diego in 1951. The first restaurant outside California opened in 1960 in<br />
Arizona; three years later, the chain expanded to Texas. In 1968, Ralston Purina acquired controlling interest in Foodmaker,<br />
the parent company of Peterson’s business concerns (including Jack in the Box, other restaurants and a food manufacturing<br />
plant) and operated Jack in the Box as a wholly owned subsidiary. Under Ralston Purina, Jack in the Box restaurants<br />
underwent a major expansion. In 1980, the hamburger chain moved away from its previous kid-oriented positioning and into<br />
an adult niche with the launch of the new Supreme sandwich line, along with a television ad campaign that symbolized the<br />
repositioning by blowing up the familiar Jack in the Box clown logo. An investment group, including members of Foodmaker<br />
management, completed a leveraged buyout of the company from Ralston Purina in 1985. Foodmaker went public in 1987,<br />
private in 1988 and then public again in early 1992. In 1999, the company changed its corporate name to Jack in the Box, Inc.;<br />
the trading symbol changed to JBX. In 2003, the company entered the quick-casual category with the acquisition of Qdoba<br />
Mexican Grill. Now operating more than 300 restaurants in 40 states, Qdoba is an emerging leader in the quick-casual<br />
Mexican sector. Jack in the Box anticipates opening up to 40 company-owned and franchised units by early 2008, including 12<br />
units inside Quick Stuff c-stores.<br />
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340
<strong>Menu</strong> Positioning |<br />
Hamburgers represent the core of the Jack in the Box menu, including the signature Jumbo Jack, Sourdough Jack and<br />
Ultimate Cheeseburger. The company also offers a value menu including tacos, a chicken sandwich and Breakfast Jack. Jack<br />
in the Box touts its assemble-to-order system with the motto, "We don't make it 'til you order it." Jack in the Box's menu is<br />
unusually extensive for a hamburger chain, with some 60 food items, plus more than 15 breakfast choices and about the same<br />
number of desserts and shakes.. The menu includes burger variations, chicken, fish, tacos, snacks, breakfast, sandwiches,<br />
fries and onion rings, salads, shakes, desserts and beverages. Burgers and other sandwiches may be served on ciabatta rolls.<br />
Fish ’n’ Chips and Bruschetta Chicken Ciabatta Sandwich are among the many non-burger alternatives. Salads include Asian<br />
Chicken Salad, Chicken Club Salad and Southwest Chicken Salad. Newer menu items include the Sourdough Ultimate<br />
Cheeseburger—two jumbo beef patties topped with mayo-onion sauce, mustard, ketchup, and American and Swiss-style<br />
cheeses on sourdough bread; Sirloin ’n’ Cheddar Ciabatta Sandwich—marinated sirloin steak, Cheddar cheese, red onions,<br />
tomatoes and green leaf lettuce, served on toasted ciabatta bread with a creamy peppercorn mayo; Spicy Mozzarella Cheese<br />
Sticks with a side of marinara sauce; and for dessert, Chocolate Chip Cookie Cheesecake. Breakfast options feature many<br />
traditional favorites and combos as well as buttermilk biscuits, French toast sticks and croissant sandwiches. Ciabatta<br />
sandwiches are another option, such as the Ciabatta Breakfast Sandwich, which features two eggs, Black Forest ham,<br />
American cheese, bacon and hollandaise sauce on a ciabatta roll. Beverages include sodas, Dannon bottled water and<br />
milkshakes. Shakes are available in a variety of flavors, such as Chocolate, Creamy Caramel, Oreo Cookie, Chocolate Chip<br />
Cookie Cheesecake, Orange & Cream, Strawberry Banana, Strawberry and Vanilla. There is a separate kids’ menu. <strong>Menu</strong><br />
prices range from 99¢–$4.59. Checks average $4.60.<br />
Expansion Plans |<br />
Jack in the Box will open its first “test” restaurant in Cathedral City, CA, in five to six months. This unit will be the first location<br />
to have a completely redesigned kitchen and dining area featuring ceramic tile floors, high-top round tables, booths and bars<br />
and a flat screen television. (Thedesertsun.com 2/15/07)<br />
Jack in the Box is re-entering the Colorado market after an 11-year hiatus, with the first restaurant scheduled to open in<br />
Golden, CO, in November, and a second unit in Arvada, CO, by early next year. Jack in the Box had eight locations in the<br />
Denver area until 1996, when its franchisee exited the market. (Lexisnexis.com 9/27/07)<br />
Jack in the Box Inc. is planning to expand franchise operations in 2008. The company intends to sell 100 to 120 Jack in the<br />
Box restaurants to franchisees in fiscal 2008, for an expected gain of $45 million to $48 million. The chain also expects to open<br />
35 to 45 new Jack in the Box units, including 13 to 17 franchised locations. For its Qdoba brand, the company plans to open<br />
75 to 90 stores, 60 to 70 of which will be franchised. (Yahoo! Finance 11/16/07)<br />
Promotion Plans |<br />
Jack in the Box is offering a free Ciabatta Burger with the purchase of a $20 Jack Cash Card. In addition, the restaurant is<br />
introducing a limited edition holiday Jack Cash Card featuring Jack in a set of reindeer antlers. The cash card will also be<br />
available in retail stores. (Company Release 11/20/06)<br />
Jack in the Box Restaurants is offering a free Holiday Antenna Ball with the purchase of a Pumpkin Pie or Egg Nog shake as a<br />
gift to its guests. The Pumpkin Pie and Egg Nog shakes are available in 16 and 24 oz. servings and are priced at $2.49 and<br />
$2.99. (Company Release 11/15/06)<br />
Jack in the Box is testing Jack TV on flat-screen TVs at 115 restaurants in Seattle and Waco, TX. Jack TV features 46 minutes<br />
of branded content, including 33 branded films. The videos are meant to entertain as well as to promote the chain’s allproducts-all-day<br />
menu or made-to-order sandwiches. The company also offers customers an opportunity to submit videos to<br />
its MySpace page for a chance to be on Jack TV. Jack in the Box’s interactive initiatives are part of the chain’s plan to make<br />
the brand “more holistic” and attract more dine-in customers. The company has seen sales increase at test stores. (Advertising<br />
Age 2/19/07)<br />
<strong>Menu</strong> Development |<br />
Jack in the Box debuted Mozzarella Cheese Sticks. The breaded sticks come with a side of marinara sauce and are priced at<br />
$1.49 for three pieces and $2.79 for six. (Nation’s Restaurant News Online 11/20/06; NRN Daily NewsFax 11/14/06)<br />
Jack in the Box introduced its new Chocolate Oreo Cookie Shake. The item is a twist on the Oreo Cookie Shake, the<br />
restaurant’s classic. It is available in 16-and 24-oz. servings for a limited time. It is priced at $2.49 for the 16-oz. and $2.99 for<br />
the 24-oz. (Company Release 1/16/07)<br />
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Jack in the Box debuted the Bacon Breakfast Jack, a variation on the company’s Breakfast Jack offering. The item includes<br />
bacon, a fried egg and American cheese on a warm bun. The original Breakfast Jack features ham, a grilled egg and<br />
American cheese on a bun. The Bacon Breakfast Jack is priced $1.29. (Nation’s Restaurant News Online 1/09/07; NRN Daily<br />
News Fax 1/10/07)<br />
Jack in the Box debuted a Sirloin Steak ’n’ Mushroom Ciabatta sandwich. The item is priced at $4.69 and features sliced<br />
marinated steak, mushrooms, provolone cheese, grilled onions and creamy peppercorn mayonnaise on a toasted roll. (NRN<br />
Daily NewsFax 2/7/07)<br />
Jack in the Box has added grilled cheese sandwiches and milk chugs to its kids’ menu. The sandwich features sourdough<br />
bread topped with two slices of American cheese. The milk is available in reduced-fat white or low-fat chocolate in 8-oz. plastic<br />
bottles. The meal comes with french fries or applesauce and a toy, and is available for $2.59. (Company Release 3/12/07)<br />
Jack in the Box rolled out the Jack’s Sampler Trio, with three stuffed jalapeños, three mozzarella cheese sticks and seven<br />
Spicy Chicken Bites, a new item consisting of chicken breast pieces covered in a spicy, crunchy coating. The Sampler Trio is<br />
priced at $3.99. The Spicy Chicken Bites are also available in portions of seven pieces ($1.79) and 16 pieces ($3.99) .<br />
(Company Release 3/05/07; Nation’s Restaurant News Online 3/20/07)<br />
Jack in the Box debuted the Andes Mint Shake, featuring vanilla ice cream, mint flavor and pieces of Andes candy, topped<br />
with whipped cream and a maraschino cherry. The item comes in 16-oz. ($2.49) and 24-oz. ($2.99) cups. . (Company Release<br />
3/05/07; Nation’s Restaurant News Online 3/20/07)<br />
Jack in the Box added two new options to its kids’ menu. New items include a grilled cheese sandwich, with two sliced of<br />
American cheese between slices of sourdough bread, and milk served in “chug” jugs, available in reduced-fat regular or lowfat<br />
chocolate versions. A kids’ meal with grilled cheese, french fries or applesauce, an 8-oz. plastic milk jug and toy is priced at<br />
$2.59. (NRN Daily NewsFax 3/14/07; Company Release 3/12/07)<br />
Jack in the Box debuted two new 100% sirloin sandwiches. The Sirloin Cheese Burger features a sirloin patty with peppercorn<br />
mayo, pickle strips, lettuce, tomato, grilled or red onions and a choice of American, Cheddar or Swiss cheese served on a<br />
toasted bakery-style bun. The Sirloin Bacon & Cheese Burger is prepared with a sirloin patty, peppercorn mayo, pickle strips,<br />
lettuce, tomato, bacon, grilled or red onions, and a choice of American, Cheddar or Swiss cheese served on a toasted bakerystyle<br />
bun. (Company Release 5/03/07; NRN Daily NewsFax 5/04/07)<br />
Jack in the Box Restaurants introduced its Blackberry Shake on May 7. The shake features real vanilla ice cream blended with<br />
pieces of blackberries, topped with whipped cream and a maraschino cherry. It is available in 16- and 24-oz. sizes, priced at<br />
$2.49 and $2.99, respectively. (Company Release 5/7/07)<br />
Jack in the Box introduced its new BBQ Ranch Chicken Salad. The salad is topped with shredded Cheddar cheese, grape<br />
tomatoes, red onion and sliced cucumbers with ranch dressing, a drizzle of barbecue sauce, barbecue-flavored tortilla strips<br />
and a choice of chicken strips on the side. In addition, the rest of the chain’s salads now feature a new lettuce blend of<br />
romaine and spring mix and a choice of warm grilled or crispy chicken strips served in a new square container that is more<br />
user-friendly. All of the salads are priced at $4.99. (Meat and Poultry Online 6/13/07)<br />
Jack in the Box has introduced a new dessert item, Chocolate Overload Cake. Priced at $1.69, the mini Bundt-style cake<br />
features dark European and double-Dutch cocoa mixed with chocolate chips and covered with chocolate buttercream frosting.<br />
(NRN.com 6/25/07)<br />
Jack in the Box introduced its Real Ice Cream Floats item. The floats combine vanilla ice cream with a choice of soda. The<br />
new item is available in 16- and 24-oz. servings priced at $2.29 and $2.79, respectively. (Company Release 7/23/07)<br />
Jack in the Box introduced its Sirloin Steak & Egg Burrito. The burrito features eggs, Hash Brown Sticks, shredded Cheddar<br />
and pepper Jack cheeses, sirloin steak and chipotle sauce with a side of fire-roasted salsa. The item, available all day, is<br />
priced at $2.99. The chain also introduced Hash Brown Sticks as a separate item, replacing its older style of hash browns.<br />
(Company Release 8/13/07)<br />
Jack in the Box introduced its Bold Roast Coffee, a European roast of 100% Arabica beans. It is available in regular and decaf<br />
versions in 12-oz. and 16-oz. sizes. The item is priced at $1.29 for a 12-oz. and $1.49 for a 16-oz. (Qsrmagazine.com 10/2/07)<br />
Franchise Activity |<br />
Jack in the Box anticipates opening up to 40 company-owned and franchised units in 2007, including 12 units inside Quick<br />
Stuff c-stores. (Foodservice Equipment Reports 11/06 p22)<br />
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342
Jack in the Box plans to increase franchisees’ proportional ownership of the chain. Michael Norwich Jr., a franchisee, agreed<br />
to expand his operations with five new locations to the Midland/Odessa market in Texas. The first unit is slated to open early<br />
next year. Norwich currently operates 10 units in El Paso, TX, and two in Las Cruces, NM. (NRN Daily NewsFax 8/31/07)<br />
Technology |<br />
Jack in the Box is installing contactless credit card devices in all of its company units by year’s end. The chain will offer the<br />
payment option at the drive-thru and at the counter. The machines will be compatible with all contactless credit cards from<br />
American Express, Discover, MasterCard and Visa. The company did not say whether or not it would roll out the system to its<br />
Qdoba Mexican Grill or its Quick Stuff c-stores. (NRN Daily NewsFax 11/07/06; SignOnSanDiego.com 11/07/06)<br />
Jack in the Box is teaming with Rippletv to add entertainment and news programming on flat-screen TVs at the chain’s<br />
locations. Rippletv will compile programs from stations such as ESPN, Yahoo, E! Entertainment and CBS. (NRN Daily<br />
NewsFax 7/6/07)<br />
Personnel |<br />
Linda Lang, CEO<br />
Jerry Rebel, CFO<br />
Alan Tonks, V.P. of Purchasing<br />
Lenny Comma, V.P. of Operations<br />
Terri Graham, CMO/ S.V.P.<br />
Jack in the Box promoted Terri Funk Graham to senior vice president and chief marketing officer, effective October 1.<br />
Previously, Graham served as vice president and chief marketing officer. (NRN Daily NewsFax 9/26/07)<br />
News & Other |<br />
Jack in the Box reported for the first quarter ended January 21 net earnings increased 48.4% to $37.4 million from $25.2<br />
million for the same period last year. Revenues rose 5.4% to $856.7 million from $813 million. Same-store sales grew 5.6%.<br />
(Company Release 2/21/07)<br />
Jack in the Box is being sued over a television commercial. CKE Restaurants is suing the company because it claims that<br />
Jack in the Box’s new television spot suggests that Hardee’s and Carl’s Jr. use cow anus to make Angus beef hamburgers.<br />
CKE claims that the ads create the impression that Jack in the Box’s 100% sirloin burgers use a better quality of meat than the<br />
Angus beef used by Hardee’s and Carl’s Jr. and that the commercials confuse consumers by comparing sirloin, a meat found<br />
on all cattle, with Angus, a breed of cattle. (Msnbc.com 5/29/07)<br />
Jack in the Box is being sued by CKE Restaurants for deceptive advertising involving its Carl’s Jr. and Hardee’s, as well as<br />
McDonald’s and Burger King. The complaint states that Jack in the Box advertisements imply competitors use cow anus to<br />
make Angus burgers. CKE seeks a court ruling blocking the ads. (MSNBC.com 5/29/07; NRN Daily NewsFax 5/29/07)<br />
Jack in the Box is attributing higher sales and a nearly 25% year-over-year jump in second-quarter profits to its premium menu<br />
offerings. The 2,098-unit chain recently introduced a higher-quality menu, including a 100% Sirloin Burger, blackberry-flavored<br />
ice cream shake, Steak ’n’ Mushroom Ciabatta sandwich and kids’ grilled cheese sandwiches. (Nation’s Restaurant News<br />
5/28/07 p10)<br />
Jack in the Box temporarily closed its headquarters in San Diego, CA, due to the fires in Southern California. (NRN Daily<br />
NewsFax 10/24/07)<br />
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343
Jamba Juice<br />
Headquarters<br />
6475 Christie Avenue Suite 150, Emeryville, California 94608 USA<br />
Tel: (800)545-9972 Fax: (510)653-0484<br />
www.jambajuice.com<br />
Ownership: Private<br />
Segment: Limited Service Coffee/Beverage<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 386,000 310,000 285,000<br />
Company-owned ($000) 236,000 200,000 182,000<br />
Franchised ($000) 150,000 110,000 103,000<br />
U.S. Number of Units 595 506 474<br />
Company-owned 372 302 274<br />
Franchised 223 204 200<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 699 675 750<br />
Concept Positioning |<br />
Jamba Juice is a limited-service chain that specializes in blended fruit drinks, including more than 20 varieties of custom-made<br />
smoothies. The chain is privately held by Services Acquisition Corp. and operates 649 locations in the U.S., 223 of which are<br />
franchised.<br />
Units, which generally seat fewer than 12 people, feature a bright and lively atmosphere filled with warm, natural lighting and<br />
vibrant colors. Shiny chrome blenders, natural wood counters and cabinetry, textured tile floors and upbeat music add to the<br />
hip decor.<br />
Jamba Juice was founded under the name Juice Club; the first store was opened in San Luis Obispo, CA, in 1990 by Kirk<br />
Perron. Soon thereafter franchising began. In 1998 and 1999, the company repositioned itself, changing the name to Jamba<br />
Juice. In 1999, the company acquired Zuka Juice, its primary competitor, giving the company 96 additional units that have<br />
largely been rebranded to the Jamba Juice name. Also in 1999, the company partnered with Prophet Brand Strategy to<br />
develop Jamba Juice’s long-term strategy. In 2006, Jamba Juice was acquired by Florida-based Services Acquisition Corp. for<br />
$265 million.<br />
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<strong>Menu</strong> Positioning |<br />
Jamba Juice's menu features an assortment of made-to-order blended fruit smoothies, freshly squeezed fruit and vegetable<br />
juices, all natural low-fat pretzels, proprietary high-nutrition breads and other healthy snacks. All fruit smoothies come with<br />
Juice Boosts—six different blends of vitamins, minerals, herbs and other nutrients to answer specific nutritional needs,<br />
including Burner Boost, Energy Boost, Femme Boost, Immunity Boost, Fiber Boost, Protein Boost, Vita Boost and<br />
Performance Boost. Popular smoothies include Aloha Pineapple—pineapple juice blend, pineapple sherbet, frozen<br />
strawberries, nonfat plain yogurt, frozen bananas and ice; Berry Lime Sublime— raspberry juice blend, lime sherbet, frozen<br />
strawberries, frozen raspberries and ice; Citrus Squeeze—pineapple juice blend, 100% pure orange juice, orange sherbet,<br />
frozen strawberries, frozen bananas and ice; Peanut Butter Moo’d—nonfat frozen yogurt, Jamba Chocolate Moo’d base,<br />
soymilk, frozen bananas, ice and peanut butter; and Cranberry Craze—cranberry juice blend, raspberry sherbet, frozen<br />
strawberries, nonfat plain yogurt, frozen blueberries and ice. In 2006, the chain introduced All-Fruit Smoothies including flavors<br />
such as Grape Escape, Mega Mango and Raspberry Rainbow. Recent additions include heart-healthy soups and three Jamba<br />
Energy drinks: Acai Supercharger, Matcha Green Tea Blast and Turbo Tropic. Baked goods include Apple Cinnamon Pretzel,<br />
Blueberry Cinnamon Swirl, Cheddar Jalapeño Twist, Cranberry Crumble, Grin N’ Carrot, Honey Berry Bran, Lemon<br />
Poppyseed Bundt and the Pizza Protein Stick. Smoothies are all priced under $5.<br />
Expansion Plans |<br />
Coffee Bean & Tea Leaf will open a location in Phoenix, AZ, by November. The unit will be located in the Thunderbird<br />
Marketplace. The chain will be accompanied by Jamba Juice, Port of Subs, Rosati’s Pizza and Chicago Gyro. (Azcentral.com<br />
8/4/07)<br />
Jamba Juice has cut back on planned store openings for 2008. The company now expects to open between 55 and 65<br />
locations for the coming fiscal year beginning mid-January, down from the 100 stores it had previously planned to open.<br />
(Yahoo! Finance 11/21/07)<br />
<strong>Menu</strong> Development |<br />
Jamba Juice launched a line of Totally Tea Smoothies in three flavors: Tahiti Green Tea, a blend of green tea, frozen mangos,<br />
lemonade and orange juice; Razz ’n Red Tea, featuring red tea, raspberry juice, frozen strawberries and soy milk; and Matcha<br />
Green Tea Blast, with soy milk, ice and matcha green tea. (Food Business News 10/17/06 p50)<br />
Jamba Juice raised the price of its smoothies and other beverages prepared with orange juice. The move came because an<br />
increase in the price of citrus fruits was expected following the devastation of California’s orange crop due to freezing<br />
temperatures. Prices for freshly squeezed orange juice at the chain will be 35¢ more per order, and smoothies and fruit blends<br />
that use orange juice will cost 25¢ more. The smoothie chain says that the increase in price is only temporary and prices may<br />
be lowered if citrus availability improves later in the year. (NRN Daily NewsFax 1/26/07)<br />
Jamba Juice introduced Jamba Light, which has less than 200 calories. (Company Promo)<br />
Jamba Juice will test a breakfast menu in a plan to boost traffic. Items such as hot stuffed pocket sandwiches (whole wheat<br />
pockets with breakfast fillings) and “chunky smoothies” (with ingredients that add texture such as oatmeal) will be featured.<br />
The company said that the breakfast foods will always compliment its drinks, its core business. The test menu is slated to<br />
appear later this summer in 30–40 units. (Nrn.com 6/12/07)<br />
Pomegranate is popping up on operators’ menus not only for its health benefi ts but for its taste. Fazoli’s added a<br />
pomegranate option to its Italian Ice flavors this spring. MaggieMoo’s menus a Triple Berry Pomegranate smoothie. Jamba<br />
Juice recently rolled out a pomegranate smoothie and reported that it now accounts for 7% of its sales. (QSRMagazine.com<br />
6/07)<br />
Jamba Juice launched a line of Functional Smoothies, accompanied by boosts and shots to help meet specific health and<br />
lifestyle needs. The items feature “super foods” such as açai berries, cholesterol-blocking plant sterols, soy and whey protein<br />
and matcha green tea. New flavors include: • Heart Defender—helps keep the heart healthy through the cholesterol-blocking<br />
ability of plant sterols and pomegranates • Fit ’n Fruitful—helps naturally reduce body fat and energize metabolism • Açai<br />
Super Antioxidant—a package of antioxidants, helping to neutralize free radicals and maintain healthy cells • Protein Berry<br />
Workout—assists pre- or post-workouts to build muscles and promote cell growth; offers 19 grams of protein in an original-size<br />
smoothie • Coldbuster—bolsters the immune system with Immunity and Antioxidant Power Boosts (Yahoo! Finance 8/2/07)<br />
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345
Jamba Juice will test a breakfast menu in New York and Los Angeles markets. The morning smoothies can be eaten with a<br />
spoon and will have a greater emphasis on juice blends. Selections include: • Granola Toppers—blended fruit, lowfat yogurt<br />
and soymilk topped with crunchy organic granola. Flavors include Rise & Berry and Mango Peach Paradiso • Chunky<br />
Smoothies—a blend of soymilk and nonfat yogurt with chunks of fruit and organic granola. Flavors include Morning Glory<br />
(strawberry, banana and peanut butter) and Jungle Jumpstart (açaï, blueberries and bananas) • Yogurt Blends—a blend of<br />
berries, nonfat yogurt and soymilk in Sunrise Strawberry and Bright Eyed & Blueberry flavors • Juice Blends—blends of freshsqueezed<br />
orange juice and other all-natural fruit juices in Tangy Citrus, Tropical Passion and Sweet Sunshine flavors • Freshly<br />
Squeezed Juices—including Orange and Carrot Juice (Company Release 9/6/07)<br />
Franchise Activity |<br />
Jamba Juice has acquired the assets of 22 Jamba Juice franchised stores in Northern California and Nevada from Sanders<br />
Liquid Sunshine, LLC, and Vegas Liquid Sunshine, LLC. Jamba Juice is working to expand its number of company-owned<br />
stores, which currently account for approximately 66% of its more than 640 units nationwide. The smoothie chain acquired 34<br />
franchised stores in 2007. (Yahoo! Finance 9/19/07)<br />
Personnel |<br />
Trey Feiler, S.V.P of Development<br />
Karen Kelley, S.V.P of Operations<br />
Paul Coletta, S.V.P. of Marketing<br />
Paul Clayton, CEO<br />
Don Breen, CFO<br />
Jamba Inc. hired Brian Lee to develop its in-store snack food offerings and add flavors to the All FruitT smoothie line.<br />
Previously, Lee served as product development director for Starbucks. (NRN Daily NewsFax 2/5/07)<br />
News & Other |<br />
Jamba Inc. reported for the first quarter ended October 17 net earnings declined 23.5% to $3.8 million from $4.9 million for the<br />
same period last year. Revenues increased 12.3% to $95.2 million. Same-store sales fell 0.2%. (NRN Daily NewsFax<br />
12/11/06)<br />
Jamba Juice alerted patrons in the Southwest of a potential Listeria monocytogenes contamination in strawberries that are<br />
used in its smoothies. No illnesses were reported. The chain said that its supplier, Cleugh’s Frozen Food of Salinas, CA,<br />
notified them that frozen strawberries from one of its facilities tested positive for Listeria. Most of the strawberries were<br />
recovered before being unpacked but Jamba Juice said that some of them may have been used at units in Arizona, Nevada<br />
and Southern California. (Nation’s Restaurant News Online 12/06/06)<br />
Jamba Inc., parent of Jamba Juice, reported for the second quarter ended July 24 revenues increased 14.1% to $89.6 million<br />
from year-before figures. Same-store sales declined 3.3%. (NRN Daily News Fax 8/15/07)<br />
Jamba Juice is testing the “Fender Bender,” a mobile unit taken to sporting and other events to expand brand name and<br />
accessibility. (Nation’s Restaurant News Online 9/19/07)<br />
Jamba Juice will introduce a ready-to-drink, prepackaged smoothie that will be sold in grocery and c-stores. Details on the<br />
product have not been disclosed. (Nation’s Restaurant News Online 9/19/07)<br />
HMS Host Corp. has partnered with Sammy Hagar to introduce a new island-style café at the Kahului Airport in Maui, Hawaii.<br />
Sammy’s Beach Bar and Grill will be a full-service restaurant with a beach-inspired casual atmosphere, and will feature signed<br />
memorabilia from Hagar’s personal collection. The bar and grill is slated to open in early 2008. It is one of four new HMS Host<br />
dining venues slated to open at the airport. The other additions include a Jamba Juice, a Starbucks and a California Pizza<br />
Kitchen. (Businesswire.com 11/07/07)<br />
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346
Jason's Deli<br />
Headquarters<br />
2400 Broadway, Beaumont, Texas 77702 USA<br />
Tel: (409)838-1976 Fax: (409)838-1906<br />
www.jasonsdeli.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 372,300 293,000 279,900<br />
Company-owned ($000) 226,800 185,000 171,900<br />
Franchised ($000) 145,500 108,000 108,000<br />
U.S. Number of Units 158 143 137<br />
Company-owned 91 87 80<br />
Franchised 67 56 57<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,500 2,300 2,270<br />
Concept Positioning |<br />
Jason's Deli considers itself part deli and part family restaurant. Offering an extensive menu of traditional and not so traditional<br />
deli fare, including wraps, paninis and organic menu items, the quick-casual chain’s food may be ordered and purchased<br />
through its cafeteria-style format. Sixty percent of Jason’s Deli locations are company-owned, with a reported 45 company<br />
stores and 30 franchise locations.<br />
Typical units, which seat 165 customers and average 4,200–5,000 sq. ft., feature black floors, Formica counter tops and blackand-white<br />
photos of marketplaces. A catering service is available. Jason's has eliminated partially hydrogenated oils and trans<br />
fats from all of its menu items, a process the company first undertook years ago when it began supplying nearly 1 million box<br />
lunches to elementary and secondary students.<br />
Jason's first unit was opened in 1976 in Beaumont, TX, by Joe Tortorice, Jr. Expansion plans call for continued growth in the<br />
Southeastern U.S., with an estimated 12–24 new stores opening per year. Recent openings include locations in Alabama,<br />
Arizona, Florida, California, North Carolina and Tennessee, in addition to five new locations in Texas.<br />
<strong>Menu</strong> Positioning |<br />
The menu at Jason's deli features a variety of sandwiches, soups, salads, wraps, muffalettas and po’boys, sides, desserts and<br />
beverages. The chain menus more than 50 varieties of sandwiches like the Ham Muffaletta—ham, salami, melted provolone<br />
cheese and olive mix; and The New York Yankee—hot corned beef, New York style pastrami and Swiss cheese. Also featured<br />
are a line of heart-healthy “Slimwiches,” with less calories, sodium, cholesterol and fat grams than other menu items—<br />
including the Spinach Veggie Wrap, Philly Chick Wrap and Garden Po’boy. Other popular items include Reuben the Great and<br />
Bird to the Wise—turkey breast, pastrami and Swiss cheese, served on an onion bun. Sandwiches are served with a choice of<br />
chips, pretzels, fruit, potato salad or steamed vegetables. A kids’ menu is available. Takeout, delivery and catering services<br />
are offered. <strong>Menu</strong> prices range from $.99–$8.59. Checks average $6.50.<br />
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published.<br />
347
Expansion Plans |<br />
Jason’s Deli opened new locations in Huntsville, AL; Glendale, AZ; Riverside, CA,; Orlando, FL; Louisville, KY; Kansas City,<br />
MO; Charlotte, Fayetteville and Greensboro, NC; Henderson and Las Vegas, NV; Spartanburg, SC; Nashville, TN; Austin,<br />
Brownsville, Houston, Flower Mound and Odessa, TX; and Chesapeake, VA. (Company Website 4/10/07)<br />
<strong>Menu</strong> Development |<br />
Jason’s Deli has eliminated trans-fat from its menu. (Company Website 2/12/07)<br />
Jason’s Deli added a Fresco Garden Pasta, made with oven-roasted herbed tomatoes, organic spinach, portobello<br />
mushrooms, artichokes and Asiago cheese over bowtie pasta. (Company Website)<br />
Personnel |<br />
Joe Tortorice, CEO<br />
Troy Cormier, CFO<br />
Lee Greer, V.P. of Purchasing<br />
Pat Broussard, COO<br />
Sharon Begnaud, V.P. of Research & Development<br />
Rusty Coco, V.P. of Marketing<br />
News & Other |<br />
Jason’s Deli has unveiled its first two “solar deli” concepts in Texas. The Austin and Beaumont restaurants will be partially<br />
powered by new solar panel systems which include in-store monitors where customers can see the amount of solar energy<br />
being generated. Jason’s plans future renewable energy installations for its 170 units. (Businesswire.com 11/13/07,<br />
Fastcasual.com 11/14/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
348
Jersey Mike's Subs<br />
Headquarters<br />
2251 Landmark Place, Manasquan, New Jersey 08736 USA<br />
Tel: (732)223-4044 Fax: (732)223-0777<br />
www.jerseymikes.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 133,000 125,500 115,415<br />
Company-owned ($000) 500 3,000 415<br />
Franchised ($000) 132,500 122,500 115,000<br />
U.S. Number of Units 325 311 292<br />
Company-owned 1 11 1<br />
Franchised 324 300 291<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 425 415 405<br />
Concept Positioning |<br />
Jersey Mike's Subs is a limited-service sandwich chain that adheres to "Jersey-Shore style." The restaurant offers two dozen<br />
hot and cold submarine sandwiches as well as wraps, soups and salads. Since its inception, the restaurant has positioned<br />
itself as a unique sandwich chain. All meats are sliced to order in front of the customer and the bread is baked fresh onsite<br />
everyday. The restaurant also produces its own private label of premium meats. Jersey Mike's Franchise Systems operates<br />
and franchises restaurants under the name Jersey Mike's Subs in 25 states nationwide, including California, Georgia, Kansas,<br />
New Jersey, Ohio and Oklahoma.<br />
Units are largely freestanding. Interiors are noted for their bare décor, which shifts customers' attention to the food—its<br />
preparation and appeal—and to the employees. Besides being known for it food, Jersey Mike's is also well established as a<br />
friendly place, where customers and employees chat while an order is being completed. This type of atmosphere has fueled<br />
the chain's growth and has polished its reputation.<br />
The original Jersey Mike's Subs opened in 1956 in Point Pleasant, NJ. Nearly 20 years later, in 1975, Peter Cancro bought the<br />
restaurant at the age of 17 with some help from his high school football coach. Franchising began in 1987. No specific<br />
expansion plans have been announced, although the chain continues to grow in existing markets.<br />
<strong>Menu</strong> Positioning |<br />
Jersey Mike’s Subs specializes in a lunch and dinner menu of sandwiches, salads, wraps, desserts and beverages. Its<br />
signature items are its hot and cold sub-style sandwiches. Premium sandwiches include the Cheese, Proscuittini and<br />
Cappacuolo sub; the Jersey Mike's Super Sub—cheese, boiled ham, proscuittini and cappacuolo; Jersey Shore’s Favorite—<br />
provolone, ham and cappacuolo; Jersey Mike’s Famous Philly—grilled steak or chicken, grilled onions and peppers; and the<br />
Original—cheese, boiled ham, proscuittini, cappacuolo, salami and pepperoni. Subs come in different sizes from the six-inch<br />
Mini Mike to its largest 14-inch variety. Soups, wraps and salads are also available, as is a “Sub in a Tub” option, which allows<br />
customers to have any sandwich served in a bowl without bread. The chain also offers catering packages, box lunches and<br />
party trays. There is no separate kids’ menu. No alcohol is served. Checks average $6.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
349
Personnel |<br />
Laura Gardener, Director of Marketing<br />
Jeanene Bono, Director of Purchasing<br />
Dave Altmann, S.V.P. of Operations<br />
Patricha Gillman, CFO<br />
Jerry Kalman, V.P. of Research & Development<br />
Peter Canero, President<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
350
Jet's Pizza<br />
Headquarters<br />
37501 Mound Rd., Sterling Heights, Michigan 48310 USA<br />
Tel: (586)268-5870 Fax: (586)268-6762<br />
www.jetspizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 90,000 84,344 72,566<br />
Company-owned ($000) 11,000 10,218 9,360<br />
Franchised ($000) 79,000 74,126 63,206<br />
U.S. Number of Units 131 122 110<br />
Company-owned 11 11 11<br />
Franchised 120 111 99<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 650 691 660<br />
Concept Positioning |<br />
Jet’s America Inc., a privately held company, owns and franchises Jet’s Pizza, a limited-service pizza chain. Jet’s offers<br />
traditional pizza, as well as a wide variety of specialty pizzas, subs, salads and chicken wings. Jet’s Pizza operates with a<br />
90%-franchised system. Its primary locations are in Michigan, Ohio and Florida.<br />
Jet’s Pizza stores are designed to operate as inline structures in strip shopping centers. An interior features red and green tiled<br />
walls and floors. Open daily for lunch and dinner, Jet’s Pizza offers carry-out service only.<br />
Founded by brothers Eugene and John Jetts, Jet’s Pizza originated in 1978. In 1992, franchising began and the number of<br />
Jet’s Pizza units has grown to more than 110. The company is currently planning expansion into the southeastern U.S., and<br />
opened its first North Carolina unit in 2005. Jet's has identified rural areas in the Midwest as its targeted growth market.<br />
<strong>Menu</strong> Positioning |<br />
Jet’s Pizza serves the lunch and dinner daypart and is carryout only. The chain specializes in pizza served as either round,<br />
square, or thin and crispy. Jet's offers a variety of traditional toppings, including sausage and pepperoni and several specialty<br />
pizzas, including the BLT Special and the Hawaiian Special. Pizzas are available in a variety of sizes: small, medium, large or<br />
extra-large. Also offered on the menu are sub sandwiches, Jet’s Boats-pizza dough stuffed with a selection of meats and<br />
cheeses. A variety of salads which include Antipasto, Garden, Tuna, Grilled Chicken and Greek. Salads also come with a<br />
choice of dressings which include Italian, Ranch, Catalina, Fat Free Italian, Fat Free Raspberry Vinaigrette or Greek. There<br />
are also chicken wings, Jet’s Bread and Cinnamon Stix. Guest favorites include Grilled Chicken Salad, Vegetarian Sub, Tuna<br />
Sub and Deli Boat. <strong>Menu</strong> price range from $6.19–$15.49. Checks average $7.47.<br />
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published.<br />
351
Personnel |<br />
John Jetts, V.P. of Purchasing<br />
Jeff Galloway, V.P. of Operations<br />
John Jetts, V.P. of Research & Development<br />
Eugene Jetts, President<br />
John Jetts, V.P. of Marketing<br />
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published.<br />
352
Jimmy John's Gourmet Sandwich Shop<br />
Headquarters<br />
2212 Fox Drive, Champaign, Illinois 61820 USA<br />
Tel: (217)356-9900 Fax: (217)359-2956<br />
www.jimmyjohns.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 262,500 200,000 164,000<br />
Company-owned ($000) 17,500 15,000 14,000<br />
Franchised ($000) 245,000 185,000 150,000<br />
U.S. Number of Units 510 354 286<br />
Company-owned 19 16 16<br />
Franchised 491 338 270<br />
International Sales ($000) - 2,600 2,500<br />
International Units - 5 5<br />
Average Sales/Unit ($000) 595 625 605<br />
Concept Positioning |<br />
Jimmy John’s Gourmet Sandwich Shops is a limited-service chain of restaurants specializing in submarine sandwiches with a<br />
variety of toppings. The chain is privately held and operates 550 units across the U.S., only 19 of which are company-owned.<br />
Larger format Jimmy John’s units average between 1,100 and 1,200 sq. ft., while the mini-mart/mall units average 750 sq. ft.<br />
and are located in and around university markets. The chain stresses production speed and trains its employees to produce<br />
any one of its sandwiches within 12-15 seconds. Offered within a 5-mile radius of each unit, Jimmy John’s will deliver orders<br />
from 11 a.m. until as late as 2 a.m. or 3 a.m. At some locations, delivery accounts for up to 30% of sales despite a modest<br />
charge of 50¢ per sandwich.<br />
Jimmy John’s first opened in Charleston, IL, near the campus of Eastern Illinois University in 1983 by 19-year-old Jimmy John<br />
Liautaud. Franchising began 10 years later. Currently, the franchise has a co-branding relationships with Kwik Mart, Shell,<br />
Mobil Oil and Papa John’s.<br />
<strong>Menu</strong> Positioning |<br />
Jimmy John's is open for lunch and dinner and offers a variety of gourmet sub sandwiches, club sandwiches, Plain Slim<br />
sandwiches, sides and beverages. Sub sandwiches are available in seven varieties and are all served on an 8–in. sub roll with<br />
fresh veggies, meats and cheese. They include the Pepé, Big John, Sorry Charlie, Turkey Tom, Vito, Vegetarian and the<br />
J.J.B.L.T. Club sandwiches have twice the meat and cheese as regular subs and are served on either 7-grain bread or French<br />
bread. They include Gourmet Smoked Ham Club, Billy Club, Italian Night Club, Hunter’s Club, Country Club, Beach Club,<br />
Gourmet Veggie Club, Bootlegger Club, Club Tuna and Club LuLu. Jimmy John’s “monstrous” sandwich creation, the<br />
Gargantuan, comes with tons of Genoa salami, sliced smoked ham, roast beef, turkey and Provolone cheese jammed into a<br />
homemade French bun and smothered with onions, mayonnaise, lettuce, tomato and Italian dressing. Also available are 6<br />
Plain Slims—subs without veggies and sauce. Sides include chips, cookies and pickles. <strong>Menu</strong> prices range from $2.99–$6.99.<br />
Checks average $5.<br />
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published.<br />
353
Expansion Plans |<br />
Jimmy John’s Gourmet Sandwich Shops has opened a new unit in New Lenox, IL. The new restaurant is located on Lincoln<br />
Highway in a strip mall near the Target store. (Suburbanchicagonews.com 11/11/06)<br />
Jimmy John’s will open a new location in Charlotte, NC, on April 10. The unit will be opened in the Promenade II shopping<br />
center. (Charlotteobserver.com 3/26/07)<br />
Jimmy John’s plans to open several locations in Wichita, KS, the first being located on Rock Road., next to Freddy’s Frozen<br />
Custard. (Bizjournals.com 5/14/07)<br />
Personnel |<br />
Amy Curtis-McIntyre, Chief Marketing Officer<br />
Jeff Vaughan, CFO<br />
Jimmy John Liautaud, V.P. of Purchasing<br />
Tim Asire, V.P. of Operations<br />
James North, President<br />
Jimmy John’s Gourmet Sandwiches hired Amy Curtis-McIntyre as Chief Marketing Officer. Previously, Curtis-McIntyre served<br />
as Vice President of Marketing for JetBlue Airways. (Nation’s Restaurant News 5/7/07 p16)<br />
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published.<br />
354
Joe's Crab Shack<br />
Headquarters<br />
9900 Westpark Dr. Suite 300, Houston, Texas 77063 USA<br />
Tel: (888)759-5637 Fax: (713)386-7575<br />
www.joescrabshack.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 365,000 451,000 412,000<br />
Company-owned ($000) 365,000 451,000 412,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 120 149 142<br />
Company-owned 120 149 142<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,900 3,100 3,200<br />
Concept Positioning |<br />
Joe's Crab Shack is a full-service casual-dining seafood chain specializing in a variety of crab, including Northwest Florida<br />
stone crab, Gulf Coast blue crab and Alaskan king crab. Joe's is one of several full-service brands owned and operated by<br />
JCS Holdings LLC. There are over 120 Joe’s Crab Shack locations nationwide.<br />
The current prototype averages 6,000 sq. ft. with a 2,000-sq.-ft. patio. The décor evokes an old fishing camp with a weathered<br />
wood facade, a tin roof and a raised outdoor deck. Dining rooms feature newspaper-covered tables, rustic picnic benches, life<br />
preservers on the walls and mallets for utensils. Older units are around 13,000 sq. ft. with interiors at 8,000 sq. ft. and the rest<br />
as a patio. Many units have a small playground next to the family dining area.<br />
Founded by Joe and Jenny Weiss, Joe's Crab Shack was acquired by Landry's Seafood Restaurants in 1994. Joe's Crab<br />
Shack launched its first international location in 2006 in Cairo, Egypt. Landry's shuttered several underperforming Joe's units<br />
in 2006, preceding the 2006 sale of Joe's Crab Shack to J.H. Whitney & Company, operating as JCS Holdings LLC. JCS<br />
acquired the chain for $192 million, including liabilities of $225 million. The company has not disclosed future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Joe's Crab Shack offers appetizers, soups and salads, sandwiches, grilled and broiled seafood, crab, steaks, desserts and<br />
beverages. Signature items include more than a half-dozen variety of crab. Crab can be ordered steamed, grilled, stuffed,<br />
barbecued or boiled. Signature crab dishes include Blue Crab Dip, Crab Stuffed Shrimp, Alaskan King Crab Legs and Crab<br />
Cake Sandwich. Platters include fried shrimp, broiled seafood and the Fisherman’s Platter, consisting of fried popcorn shrimp,<br />
clam strips, fish fillet and scallops. Takeout and kids’ menus are also available. <strong>Menu</strong> prices range from $3.99–$25.99. Checks<br />
average $10.50.<br />
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published.<br />
355
<strong>Menu</strong> Development |<br />
Joe’s Crab Shack is expanding its menu to include more salads and sandwiches. New selections include Pesto-Chicken<br />
Baguette, Buffalo Chicken Wrap, Blackened Mahi Sandwich, Pacific Coast Fish Wrap, Island Chicken Salad and Buffalo<br />
Chicken Salad. The chain also plans to add island-themed alcoholic beverages and non-alcoholic smoothies. Joe’s Crab<br />
Shack also plans to eliminate trans fats from its foods and to adjust the prices and presentation of its crab dishes. (Nation’s<br />
Restaurant News Online 1/30/07; Company Release 1/25/07)<br />
Joe’s Crab Shack introduced several new items. Offerings are: • Great Balls of Fire—jalapeño, shrimp and crab balls • BBQ<br />
Chicken & Sausage Quesadilla—crisp flour tortillas filled with chipotle BBQ chicken, smoked sausage and pepper Jack<br />
cheese • Aruba Salad—hardwood-grilled chicken served over mixed field greens, red onion, applewood-smoked bacon,<br />
candied walnuts, tomatoes and bleu cheese crumbles, tossed in strawberry vinaigrette • Joe’s Steak Deal—8-oz. center-cut<br />
top sirloin paired with parsley potatoes and veggies • Fire Grilled Steak & Malibu Shrimp—8-oz. center-cut top sirloin paired<br />
with jumbo shrimp glazed with Malibu coconut sauce and topped with mango salsa, served with rice and veggies • Grilled<br />
Malibu Shrimp—fire-roasted jumbo shrimp glazed with Malibu coconut sauce and opped with mango salsa, served with rice<br />
and veggies • Joe’s Chicken Club Sandwich—hardwood-grilled chicken breast covered in Monterey Jack cheese, lettuce,<br />
tomatoes, avocado and crispy applewood-smoked bacon, served with fries and coleslaw • Mushroom Jack Burger—beef patty<br />
topped with sautéed mushrooms and Monterey Jack cheese (Company Website)<br />
Personnel |<br />
Breck Templeton, CFO/Senior VP<br />
Ellen Cleary, Director of Purchasing<br />
Charlie Felts, S.V.P of Operations<br />
Ray Blanchette, CEO<br />
Robin Aheran, V.P. of Marketing<br />
Joe’s Crab Shack hired Ray Blanchette as Chief Executive Officer. Previously, Blanchette served as Chief Operating Officer<br />
and President of Pick Up Stix. (Company Release 5/18/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
356
Johnny Rockets<br />
Headquarters<br />
25550 Commercentre Drive Suite 200, Lake Forest, California 92630 USA<br />
Tel: (949)643-6100 Fax: (949)643-6200<br />
www.johnnyrockets.com<br />
Ownership: Private<br />
Segment: Full Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 206,400 189,600 173,650<br />
Company-owned ($000) 60,000 51,600 47,150<br />
Franchised ($000) 146,400 138,000 126,500<br />
U.S. Number of Units 172 158 151<br />
Company-owned 50 43 41<br />
Franchised 122 115 110<br />
International Sales ($000) 32,400 25,200 18,400<br />
International Units 27 21 16<br />
Average Sales/Unit ($000) 1,200 1,200 1,150<br />
Concept Positioning |<br />
Johnny Rockets is a chain of full-service restaurants that is centered around the look and feel of the 1940s malt shops. The<br />
chain is privately held and operates more than 200 locations across the U.S., 122 of which are franchised.<br />
Units are generally freestanding and average 1,500 sq. ft. with a nostalgic ambience created with vintage chrome jukeboxes<br />
that play songs for a nickel, neon signage and artifacts of the period as well as a U-shaped black and chrome counter<br />
complete with red bar stools. It also stresses service and high energy levels among its staff to add an entertainment element to<br />
the dining experience.<br />
Johnny Rockets first opened in 1986 in Los Angeles by Ronn Teitelbaum. In 1995, a group of private investors led by Patricof<br />
& Co. (now Apax Partners) acquired majority interest in the company. The chain has an aggressive plan for growth to increase<br />
the chain’s size by more than 70% through 2015. In 2007, RedZone Capital Fund II agreed to acquire the over 200-restaurant<br />
chain of Johnny Rockets for unspecified terms.<br />
<strong>Menu</strong> Positioning |<br />
Johnny Rocket's is open for lunch and dinner and offers starters, signature hamburgers and sandwiches, hand-dipped shakes,<br />
malts and floats, sides, desserts and beverages. Its signature item is the Rocket Double—two 1/3 lb. beef patties, two slices of<br />
Tillamook cheddar cheese, lettuce, tomato, onion and special sauce. Classic menu items include the Tuna Melt—white<br />
albacore tuna salad on grilled bread with two slices of melted Tillamook Cheddar cheese; Grilled Breast of Chicken—<br />
marinated chicken breast, grilled and served with lettuce, tomato and mayonnaise on a grilled bun; and the Streamliner—a<br />
100% soy Boca burger with grilled onions, lettuce, tomato, pickle and mustard. Its menu also includes salads, chicken tenders,<br />
hot dogs and chili dogs. Customers can also add on cheese, bacon, chili, egg, grilled mushroom or onions and an extra patty<br />
to any of their sandwiches or burgers for a small price. Sides include fries, chili bowl, onion rings, and cheese or chili fries.<br />
Deluxe shakes and malt flavors include Hershey’s chocolate, strawberry, vanilla, Big Apple, Oreo cookies & cream, chocolate<br />
peanut butter, Butterfinger, strawberry-banana and mocha fudge. Kids’ menu is available. <strong>Menu</strong> prices range from $3.49–<br />
$9.99. Checks average $9.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
357
<strong>Menu</strong> Development |<br />
Johnny Rockets plans to eliminate trans fats from it domestic menu. The chain will switch to a trans-fat-free oil by mid-2007<br />
and is also planning to work with suppliers to remove trans fats from all products used in food preparation. (Company Release<br />
1/24/07)<br />
Personnel |<br />
Mike Dobrota, S.V.P. of Research & Development<br />
Lee Sanders, CEO<br />
Rick Rosen, CFO<br />
Jeff Preston, V.P. of Purchasing<br />
Michael Kosloski, V.P. of Operations<br />
Mimi Somerman, V.P. of Marketing<br />
Johnny Rockets hired Lee Sanders as Chief Executive Officer. Previously, Sanders served as Senior Vice President of<br />
Development and Franchising for Buffalo Wild Wings. Sanders replaces Mike Shumsky, who has been Johnny Rockets’ Chief<br />
Executive Officer since 1999. (NRN Daily NewsFax 5/21/07)<br />
News & Other |<br />
Johnny Rockets is being acquired by RedZone Capital for an undisclosed amount. Daniel M. Snyder, the owner of the<br />
Washington Redskins and Six Flags amusement parks, owns RedZone, a private equity firm. Snyder is planning to open 1,000<br />
Johnny Rockets restaurants over the next five years, including outlets inside Six Flags parks, at FedEx Field where the<br />
Redskins play and in international markets. Snyder is also looking to open several locations of the Johnny Rockets Express<br />
concept in airports, malls and stadiums. This is RedZone’s first foray into the foodservice industry. Johnny Rockets operates or<br />
franchises over 202 locations worldwide. (New York Times 2/09/07; StarNewsOnline.com 2/09/07; NRN Daily NewsFax<br />
2/12/07)<br />
Six Flags inked a deal with Johnny Rockets to operate locations throughout its parks. Johnny Rockets will become a Six Flags<br />
Corporate Alliance Partner. The agreement also calls for the two companies to collaborate on marketing and promotional<br />
activities at the more than 200 Johnny Rockets nationwide. Six Flags will open 26 outlets of the burger chain in the next three<br />
years, with the first units slated for Chicago, Dallas, Los Angeles, New Jersey, San Antonio and St. Louis. Marketing and<br />
promotional efforts include tabletop flip chart advertising Six Flags at all Johnny Rockets locations; discounted admission at<br />
any U.S. Six Flags with a Johnny Rockets receipt; a Six Flags-branded kids’ activity menu at Johnny Rockets; website and<br />
email advertising; and a special Six Flags-branded milkshake that will be sold both in the parks and at Johnny Rockets<br />
restaurants. (Company Release 3/21/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
358
K&W Cafeterias<br />
Headquarters<br />
1391 Plaza West Rd., Winston-Salem, North Carolina 27103 USA<br />
Tel: (336)760-0526 Fax: (336)659-0032<br />
www.kwcafeterias.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 108,800 105,500 108,000<br />
Company-owned ($000) 108,800 105,500 108,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 33 34 34<br />
Company-owned 33 34 34<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,250 3,100 3,150<br />
Concept Positioning |<br />
K&W Cafeterias is a limited-service chain of restaurants that offer a wide selection of entrées, side dishes and desserts in a<br />
traditional cafeteria-style format. The chain appeals to a wide demographic, but its most significant customer base is families<br />
with children. The chain is positioned as a family-oriented concept that offers homestyle American food for an affordable price.<br />
K&W operates primarily in the Southeastern U.S., extending from the Carolinas to the Virginias. K&W is a family-owned and<br />
operated chain that does not franchise its units.<br />
The restaurants, which average 11,500 sq. ft. and seat 300, are either freestanding or found in shopping centers and malls. All<br />
of the freestanding units are located in close proximity to shopping centers. The company also caters to bus tours and other<br />
large dining groups due to its seating capacities. The company's exterior signs feature red letters. Its newest units have offwhite<br />
stucco facades and a separate counter and entrance for takeout orders. The interior décor includes coordinating rugs,<br />
upholstery and window treatments in modern color schemes. K&W has also introduced two new prototypes—K&W Express<br />
and K&W Café. The Express model is designed to operate in mall food courts, while the Café model features drive-thru<br />
service.<br />
Grady T. Allred, Sr., the founder of K&W Cafeterias, entered the restaurant business in the mid-1920's. Three brothers with the<br />
last name of Wilson and a brother-in-law of theirs with the name of Knight bought the coffee shop where Allred worked some<br />
years later. Allred later acquired a one-third interest in it and moved it to Winston-Salem, NC. Around 1940, Allred bought out<br />
his partners and became the sole owner. The company remains family-owned today.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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359
<strong>Menu</strong> Positioning |<br />
K&W menus a wide variety of salads, entrées, vegetables, breads and desserts for lunch and dinner; select locations also<br />
serve breakfast. Breakfast offerings include fresh fruits, breakfast meats such as ham, bacon and sausage, as well as grits,<br />
oatmeal, pancakes and waffles. Multiple fish, chicken, roast beef and ham entrées are always available for lunch and dinner.<br />
Served buffet style, approximately 16–20 salads, 14–18 entrées, 15–20 vegetables, 6–9 breads and 12–16 dessert items are<br />
available daily. More than 100 items are listed on a menu that constantly rotates its offerings. Signature items include Country<br />
Style Steak, Barbecued Pork Spareribs and Chicken Stew & Dumplings. Units also menu "Heart Healthy Choices,” entrées<br />
and vegetables that are low in cholesterol, fat and salt. Takeout service is available. Its “Child’s Choice” menu features entrées<br />
such as Spaghetti & Meat Sauce, Chicken Fingers and a 5-oz. Chopped Steak for $2.99. Desserts include cheesecakes,<br />
cakes, pies, cobblers, puddings and sugar-free items. No alcohol is served. <strong>Menu</strong> prices range between 99¢and $6.49.<br />
Checks average $8.<br />
Personnel |<br />
R. Leo Sasaki, V.P. of Finance<br />
Donald C. Allred, CEO<br />
James Sizemore, COO<br />
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360
KFC<br />
Headquarters<br />
1441 Gardiner Lane, Louisville, Kentucky 40213 USA<br />
Tel: (502)874-1000 Fax: (502)874-8291<br />
www.kfc.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 5,205,000 5,237,000 4,950,000<br />
Company-owned ($000) 1,315,000 1,447,000 1,368,000<br />
Franchised ($000) 3,890,000 3,790,000 3,582,000<br />
U.S. Number of Units 5,394 5,443 5,525<br />
Company-owned 1,025 1,155 1,248<br />
Franchised 4,369 4,288 4,277<br />
International Sales ($000) 9,300,000 7,957,000 7,227,000<br />
International Units 8,864 8,288 7,741<br />
Average Sales/Unit ($000) 960 954 896<br />
Concept Positioning |<br />
KFC is the largest limited-service chicken chain in the world. Its units offer walk-in, sit-down, carryout, and, in many locations,<br />
drive-thru service. KFC offers a variety of fried chicken items, salads, sandwiches, sides and KFC Famous Bowls. Yum!<br />
Brands is the parent company of KFC. Yum! franchises the majority of KFC units.<br />
The majority of KFC units are freestanding. There are several outlets in nontraditional locations as well as kiosk sites. As part<br />
of its emphasis on keeping the concept vital, it is remodeling stores, opening kitchens to customer view and increasing<br />
seating.Stores feature an earth tone color scheme and provide seating for at least 24 persons. As part of recent remodeling,<br />
unit signage features a more defined Colonel Harlan Sanders against a red background with KFC logo in black lettering under<br />
his chin. The interior decor features warmer colors, shop-style windows and a digital jukebox that plays customer selected<br />
music for free. There are signs throughout the restaurant with sayings such as “Finger Lickin’ Good” and “11 Secret Herbs and<br />
Spices.” Yum! also co-brands KFC with its sister chain Taco Bell. Both sales and returns have been boosted in those units that<br />
have both brands. There are also a few tri-branded units that feature Taco Bell, Pizza Hut and KFC.<br />
Colonel Harland Sanders founded KFC in 1930. In 1964, a group of investors headed by John Y. Brown bought it and is<br />
credited with growing the chain to its segment dominance. PepsiCo, Inc. acquired the company in the mid-1980's. In early<br />
1991, in an effort to reposition itself as a healthier concept, the chain changed its name from Kentucky Fried Chicken to the<br />
use of the initials KFC as its official identifier. In early 1997, PepsiCo announced its intention of spinning off its restaurant<br />
holdings into a separate publicly traded company, Tricon Global, later renamed YUM! Brands, Inc. The chain will continue to<br />
grow through franchising agreements. It plans to open at least 500 co-branded KFC-Taco Bell outlets in small communities<br />
throughout the U.S. In addition, KFC is focusing on international markets such as China, where it currently operates nearly<br />
1,500 units. Yum! plans to open at least 300 outlets in mainland China over the next few years; at least 100 will feature drivethru<br />
windows.<br />
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361
<strong>Menu</strong> Positioning |<br />
KFC's menu features fried chicken, sandwiches, salads, sides, desserts and beverages. Its signature items are its fried<br />
chicken, sold as breast, wing, drumstick, or thigh, available in Original Recipe, Spicy or Extra Crispy varieties. Its most popular<br />
chicken items include Crispy Strips, Honey BBQ Wings, Hot and Spicy Chicken, Hot Wings, Popcorn Chicken, Oven Roasted<br />
Strips and the Chicken Pot Pie. Another popular item are the KFC Snackers, mini sandwiches available in Crispy, Buffalo and<br />
Honey BBQ. KFC Snackers are prepared on a small sesame seed bun, with lettuce and choice of Buffalo sauce, Honey BBQ<br />
or mayo. Also menued are two Twister Wrap sandwiches—the Oven Roasted Chicken Wrap and the Crispy Chicken Wrap,<br />
with chicken, lettuce, tomato and pepper mayonnaise. Sides include mashed potatoes, cole slaw, macaroni & cheese, corn on<br />
the cob, biscuits, homestyle gravy, BBQ baked beans, green beans and potato wedges. Also listed are the KFC Famous<br />
Bowls such as Mashed Potato Bowl, Rice Bowl and Chicken & Biscuit Bowl. Kids meals are available, such as the KFC Kids<br />
Laptop Pack, which includes choice of chicken, side item, Mott’s Apple Sauce, Hi-C Fruit Snacks and a drink. Desserts include<br />
Chocolate Chip Cake, Apple Pie Minis and Little Bucket Parfaits in Fudge Brownie, Chocolate Crème, Lemon Crème and<br />
Strawberry Shortcake. <strong>Menu</strong> prices range from 69¢–$28.95. Checks average $8.45.<br />
Promotion Plans |<br />
KFC debuted a series of interactive TV ads to promote Boneless Variety Bucket, its newest menu item. The commercials<br />
feature a high-frequency “Mosquito Tone” that most kids can hear but most adults can’t. The viewers are asked to guess the<br />
point in the ad when the tone is played and enter their picks on the chain’s website. The first 1,000 customers who guess<br />
correctly will receive $10 KFC gift cards that can be used to purchase the $9.99 bucket meal. The Boneless Variety Bucket<br />
includes boneless chicken crispy strips, honey barbecue wings and popcorn chicken. (NRN Daily NewsFax 4/12/07)<br />
KFC launched two 15-second television spots and an online/in-store marketing program on April 30 to promote its new frying<br />
oils that contain zero grams of trans fat. In addition to the ads, KFC if offering 10,000 $1 gift checks in a related campaign on<br />
its website. However, artificial trans fats are still present in the restaurant’s biscuits, desserts and pot pies. (NRN Daily<br />
NewsFax 4/30/07)<br />
KFC created a new television commercial called “Celebration”, which the television spot celebrates its fans and its zero grams<br />
trans fat conversion by featuring the Internet’s most popular video-sharing communities. The content of the commercial is<br />
taken entirely from existing consumer generated video. (Company Release 5/21/07)<br />
KFC is promoting its new Teriyaki Boneless Wings with a video featuring an artist using teriyaki sauce and karate techniques<br />
to paint a mural of chain founder Col. Harland Sanders. The artist covers his hands and feet with paint made with teriyaki<br />
sauce and kicks, chops and head-butts a wall-sized canvas to paint the image in the video. The Teriyaki Boneless Wings<br />
combo meal of six wings, potato wedges and a drink is $3.99. (NRN Daily NewsFax 7/11/07)<br />
KFC unleashed the power of smell in the halls of offices in Chicago, Dallas and Washington D.C. to lure workers to KFC<br />
locations. The chain is promoting its $2.99 Deals through a pilot program that is scent-focused. The marketing campaign<br />
began last week in the Chicago offices of the Salvation Army, the Dallas mailrooms of Chemistry.com and the Washington<br />
D.C. Trade Association & Society Consultants building. A plate of KFC food was placed on mail carts that pass out interoffice<br />
mail, overnight packages and bills before lunch. The $2.99 Deals include a chicken breast, a drumstick or thigh, two Crispy<br />
Strips, a side of mashed potatoes and gravy or macaroni and cheese and a biscuit. (MediaPostPublications 8/29/07)<br />
KFC is promoting its Famous Bowls with a “What Wrong Would You Right” contest tied to NBC’s premiere of “My Name is<br />
Earl.” The fried chicken chain is asking contestants to follow the actions of the namesake character, who wins $100,000 in the<br />
lottery and decides to right his past wrongs. Contestants submit descriptions of wrongs that they wish to correct. Participants<br />
are eligible to win $100 KFC gift checks. Separately, KFC is holding a sweepstakes in which contestants can enter a secret<br />
code, found on in-store promotional materials, for a chance to win $25,000. (NRN Daily NewsFax 9/11/07)<br />
KFC has launched its Triple Dip Strip Campaign in New York City. The marketing campaign features a traveling KFC truck<br />
with prominent graphics and sound system, targeted cell phone messaging and specially designed KFC Segways. Slated<br />
marketing locations in Manhattan include Rockefeller Plaza, Times Square and Madison Square Garden. The campaign is set<br />
to run through November 18. (Businesswire.com 11/08/07)<br />
KFC launched its Festive Fanatics Contest to find the best holiday decorator in America. Contestants can visit kfc.com to<br />
submit photos and videos of their festively decorated homes. The grand-prize winner will get a year's worth of free KFC and<br />
have his or her December electricity bill and a December credit-card bill paid by KFC. The contest runs through December 14.<br />
(Yahoo! Finance 11/27/07)<br />
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362
<strong>Menu</strong> Development |<br />
Several chain restaurants are planning to reduce or eliminate trans-fats from their menus. Popeye’s Chicken & Biscuits will<br />
eliminate trans fats from its biscuits and introduce reduced transfat french fries by year’s end. Burger King will test a trans-fatfree<br />
frying oil sometime in the next 90 days. KFC will use a new soybean oil at its units in New York and Chicago, with plans to<br />
roll it out systemwide by spring 2007. IHOP plans to test trans-fat-free oils at its more than 1,200 units in the U.S. and Canada.<br />
Souper Salad restaurants are also planning to be trans fat free by year’s end. McDonald’s units in Australia have switched to a<br />
frying oil that is nearly free of trans fatty acids. The company did not say whether or not it would use the blend of canola and<br />
high-oleic sunflower oil at its U.S. locations. (Los Angeles Times 11/07/06; Company Release 11/07/06)<br />
KFC gave customers the opportunity to try its Colonel’s Crispy Strips for free at the end of January. The company offered the<br />
item with any purchase at participating KFC outlets. KFC said that it was trying to attract customers who had been purchasing<br />
Wendy’s Homestyle Chicken Strips, which were recently pulled from the Wendy’s menu. (NRN Daily NewsFax 1/25/07; Promo<br />
4/30/07)<br />
KFC introduced its new KFC Fish Snacker featuring a 100% Alaskan Pollack fillet topped with tartar sauce and served on a<br />
sesame bun. (Company Release 2/21/07)<br />
KFC introduced Grilled Mexi Bowls as part of a line of new grilled menu items exclusively for the Southern California market.<br />
The bowls became available on April 30. They feature South-of-the-Border flavor with a combination of all-white breast meat<br />
strips marinated and grilled in herbs and spices, Mexican-style rice, pico de gallo and jalapeño pinto beans. Other grilled<br />
options include the Grilled Snacker, Grilled Twister and Grilled Kids Laptop Meal. (Company Release 4/30/07)<br />
Yum! Brands chains KFC and Taco Bell have completed their switch to a trans-fat-free menu. All 5,500 U.S. KFC locations<br />
have made the transition as well as all 4,200 Taco Bells across the country. Oil now used in Taco Bells is canola oil while oil<br />
used in KFCs is now soybean oil. Currently, 23 Taco Bell menu items are trans-fat-free, including the chicken and beef<br />
crunchy taco, chicken and steak Gordita Supreme, grilled steak soft taco and the chicken and steak Chalupa Supreme.<br />
(Usatoday.com 5/2/07)<br />
KFC added the Boneless Variety Bucket to its menu. It combines four Crispy Strips, eight boneless honey barbecue wings and<br />
a large order of Popcorn Chicken into one bucket. (Company Release 4/11/07)<br />
KFC introduced the Chicken & Biscuit Bowl. The bowl features layers of deep-fried chicken pieces, mashed potatoes, three<br />
cheeses, corn and country-style white gravy with a buttermilk biscuit. The new item has been added to the KFC Famous Bowl<br />
line. It is made to order and is priced at $3.99. (NRN Daily NewsFax 5/9/07)<br />
KFC, Arby’s, Carl’s Jr. and McDonald’s as well as many other chains are hopping on the Mexican-flavor bandwagon with new<br />
items featuring chipotle, poblano peppers, spicy beans and cilantro. KFC introduced its Grilled Mexi Bowl featuring Mexicanstyle<br />
rice, jalapeño pinto beans and pico de gallo relish; Arby’s is now offering a Santa Fe Salad; McDonald’s introduced its<br />
Southwest Salad; and for years, Carl’s Jr. has featured items such as breakfast burritos. (Nation’s Restaurant News 5/21/07<br />
p6)<br />
KFC added Teriyaki Boneless Wings, chicken breast marinated and breaded in special seasonings, then fried and dipped in<br />
teriyaki sauce. (Company Website)<br />
KFC created $2.99 Deals, consisting of a chicken breast, a drumstick and thigh or two Crispy Strips, plus a side of mashed<br />
potatoes and gravy or macaroni and cheese and a biscuit. (NRN Daily NewsFax 8/29/07; Company Website)<br />
KFC introduced Triple Dip Strips, featuring three all-white meat Colonel’s Crispy Strips and a choice of three out of six dipping<br />
sauces. Sauces are Fiery Buffalo, garlic Parmesan, traditional honey BBQ, creamy ranch, honey mustard and sweet and sour.<br />
(Company Website)<br />
KFC introduced the Festive Feast meal for the holidays. The new family-sized meal includes a “mega-jug” soft drink, 10 pieces<br />
of chicken, two large side dishes, six buttermilk biscuits and a chocolate-chip cake. The company is promoting the Festive<br />
Feast as a “complete on-the-go meal for busy families.” (Company release 11/28/07)<br />
Franchise Activity |<br />
KFC is planning to close between 200–400 franchise restaurants nationwide over the next 17 months because their<br />
franchisees are not complying with the company’s mandatory remodeling program. Franchisees are required to make the<br />
renovations by June 2008 or close their restaurants. KFC has updated about 70% of its 5,500 domestic locations. Changes<br />
include new awnings, chairs, bucket-shaped lighting and artwork featuring company founder Harlan Sanders. The upgrades<br />
can cost franchisees about $250,000. (The Courier-Journal 12/11/06)<br />
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363
International Activities |<br />
Burger King signed an agreement with AmRest Holdings N.V. for the first Burger King outlet in Poland. The unit is slated to<br />
open in Warsaw later this year. AmRest is a Poland-based franchisee of KFC and Pizza Hut. (AFX International Focus<br />
3/12/07; NRN Daily NewsFax 3/14/07; Foodservice Equipment & Supplies 3/14/07)<br />
Yum! Brands Inc. inked a deal with Brazil Fast Food Corp. to open KFC franchises in Brazil. The franchisee will assume<br />
control of the four Yum-owned KFC units in Rio de Janeiro from 22-N Participacoes Ltda. (NRN Daily NewsFax 3/30/07;<br />
Company Release 3/29/07)<br />
KFC will allow unionization of its restaurants in China. By doing this, the company is cleared of breaking labor laws in the<br />
nation’s south. McDonald’s is doing the same. (Forbes.com 4/10/07)<br />
Yum! Brands’ China division is seeing 20% growth in operating profit this year. The company plans to add 300 more KFC units<br />
in mainland China, and Pizza Hut will open 20 home-delivery and 70 casual-dining outlets there. Yum! will also roll out several<br />
new products to mark KFC’s 20th year in China, including beverages and desserts. In addition, it plans to target the youngadult<br />
demographic with new advertising. (NRN Daily NewsFax 5/11/07)<br />
KFC Japan has pulled four cabbage products from its restaurants after two customers found glass in their cole slaw. The<br />
products were removed from 228 stores in Tokyo and neighboring areas. It has been determined that the glass came from a<br />
broken thermometer in a cabbage refrigerator at a factory near Tokyo. To ensure no future damages, some KFC Japan<br />
locations have stopped selling cole slaw and another salad as well as two types of sandwiches. The company has apologized<br />
and pledged to stricter quality control procedures to prevent further occurrences. (CBSNews.com 6/1/07)<br />
A KFC in Sarawak, Malaysia, is the third KFC location in Malaysia to use only sign language and employ hearing- and speechimpaired<br />
individuals. The unit is decorated with the sign language alphabet on the walls. It is also completely silent. To alert<br />
workers, management uses flashing lights and other gadgets. (Thestar.com 6/29/07)<br />
KFC workers in Hong Kong are earning hourly wages less than the price of a KFC meal, with some making as little as the<br />
equivalent of $2.08 U.S. dollars an hour. Labor unions in Hong Kong are campaigning for a general minimum wage to be set<br />
for the city’s 6.9 million inhabitants. (Restaurants & Institutions Online 10/6/07)<br />
KFC has signed a dairy product supply agreement with China’s top dairy producer, Inner Mongolia Mengniu Dairy Industry<br />
(Group) Co. Ltd. The local producer will replace Nestle next year as dairy supplier to KFC’s 2,000-plus Chinese units. (Food<br />
Institute Report 10/29/07)<br />
KFC Japan has been bid on by Mitsubishi Corp. in a deal worth up to $267.7 million, according to Mitsubishi. KFC Japan’s<br />
parent company, Kentucky Fried Chicken Corporate Holdings Ltd., has agreed to sell its 31% stake to Mitsubishi. KFC Japan<br />
operates about 1,500 KFC and Pizza Hut stores across Japan. Kentucky Fried Chicken Corporate Holdings Ltd. is a<br />
subsidiary of Yum Brands Inc. (Business First of Louisville 10/31/07)<br />
KFC China has signed a dairy supply contract with Mengniu Dairy. Mengniu will provide milk and other diary products to KFC’s<br />
2,000 outlets in China. Starbucks also signed Mengniu as its dairy supplier in June. (Forbes Online 10/23/07)<br />
Personnel |<br />
Steve Provost, Chief Marketing Officer<br />
Mike Tattersfield, COO/President<br />
David C. Novak, CEO<br />
Rick Carucci, CFO<br />
Leah Evans, Chief Food Innovation Officer<br />
News & Other |<br />
KFC’s new Contemporized Colonel Sanders logo will be the first 87,500 sq. ft. logo in Area 51 Desert, making it the world’s<br />
first brand to be seen from outer space. The logo depicts the traditional look of the colonel, but instead of his classic white,<br />
double-breasted suit, he’s wearing a red apron signifing the home-style heritage of the brand. (Hotelnewsresource.com<br />
11/14/06)<br />
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364
KFC has rolled out a new logo as well as a new design for the company’s restaurants. The logo will feature a more defined<br />
Colonel Harlan Sanders against a red background that matches his red apron, with the KFC name in thick black lettering<br />
under his chin. New restaurant elements include signs that say, “Finger Lickin’ Good,” and “11 Secret Herbs and Spices,” as<br />
well as warmer interior colors, shop-style windows and a digital jukebox that plays customer-selected music for free. KFC<br />
plans to upgrade newly built stores over the next 12 months. In other news, KFC is petitioning the U.S. Postal Service to<br />
create a stamp using Colonel Sanders’ image. Customers may sign an online petition that asks the U.S.P.S. to create the<br />
stamp. (Detroit Free Press 11/14/06; MSNBC.com 11/14/06; Company Release 10/18/06)<br />
Trans fats will be reduced or eliminated from some menu items at several chain restaurants. Popeye’s Chicken & Biscuits is<br />
eliminating trans fats from its biscuits and will introduce reducedtrans-fat french fries by year’s end. Burger King will test a<br />
trans-fat-free frying oil within the next 90 days. IHOP is also testing a trans-fat-free oil at its restaurants in the U.S. and<br />
Canada. KFC is using a trans-fat-free soybean oil at its units in New York and Chicago and will roll it out systemwide by spring<br />
of 2007. Souper Salad plans to be trans-fat-free by early December. McDonald’s units in Australia have switched to a frying oil<br />
that is nearly free of trans fatty acids. McDonald’s European units will cut the level of trans fats in frying oil to 2% by 2008.<br />
McDonald’s will use a blend of canola oil and high oleic sunflower oil at these locations. The company did not say whether or<br />
not it would roll out the oil to its U.S. locations. (Los Angeles Times 11/07/06; Reuters 11/07/06; NRN Daily NRN Daily<br />
NewsFax 11/01/06, 11/08/06, 11/10/06)<br />
KFC is planning to close its restaurants over the next 17 months because the franchisees won’t comply with the strict<br />
remodeling campaign that Yum! Brands Inc. has set. (Floridatoday.com 12/13/06)<br />
Britain has banned in some instances the advertising of food and beverages containing high levels of fat, sugar or salt to<br />
children. The country will not allow advertising for so-called junk food to be shown during children’s TV shows or adult<br />
programs that attract a larger than average proportion of viewers younger than 16. The ban will be phased in during the first<br />
half of 2007. Burger King had decided before the ban went into effect to halt advertising during children’s programs in the U.K.<br />
KFC said that it plans to stop using promotional toys to sell children’s meals in that country. (NRN Daily NewsFax 11/18/06)<br />
Yum! Brand Inc. anticipates opening several KFC-Taco Bell co-branded outlets in 500 small communities nationwide. The<br />
company is developing 30 co-branded locations to open in rural Indiana Kentucky as well as in the North Pole, AK, and<br />
Keystone, FL. There are more than 3,000 Yum! multi-branded restaurants worldwide. (The Courier Journal 12/25/06)<br />
Yum! Brands has closed several of its franchised restaurants in New York City after a video showing a dozen rats running<br />
around on floors, countertops and tables of a KFC/Taco Bell unit was broadcast on a local television news show. The unit was<br />
ordered closed by the health department. The restaurants, all owned by ADF Franchise Companies, Inc., will remain closed<br />
until they undergo new health inspections. (Associated Press 3/1/07)<br />
KFC is a candidate to replace Anheuser-Busch Co. as title sponsor of the NASCAR Busch Series next season. In addition to<br />
KFC, Subway is also a candidate. NASCAR and ESPN are working together to sell the sponsor title, which will cost the<br />
sponsor about $30 million a year. (Memphis.bizjournals.com 4/30/07)<br />
KFC will post warnings in its California restaurants stating that its fried-potato side dishes and other select items contain<br />
acrylamide, a known carcinogen. Yum! Brand franchisor, KFC Corp., is including the in-store nutritional posters as part of a<br />
settlement of a lawsuit by the state of California against the chain and other food sellers including McDonald’s, Burger King<br />
and Wendy’s. (NRN Daily NewsFax 4/26/07)<br />
Yum! Brands will permanently shutter the rat-infested KFC-Taco Bell unit in New York City that was closed in February after<br />
evidence of the infestation was caught on tape. The incident prompted a citywide restaurant inspector crackdown as well as<br />
the temporary closing of about 300 restaurants. (NRN Daily NewsFax 5/07/07; Nation’s Restaurant News Online 5/04/07)<br />
A KFC/Taco Bell franchisee is being sued for allegedly allowing an employee to urinate on and spit in the food of a policeman<br />
and his family. The suit against Mid Plains Food and Lodging claims the police officer and his wife and two sons became<br />
“violently ill” after eating at a Nebraska franchise in 2005. The lawsuit claims management was aware of employees urinating<br />
on or spitting in food served to police officers but did nothing to stop the acts. The employee in question pleaded guilty in<br />
March to a similar incident. (Nation’s Restaurant News Online 6/25/07)<br />
Taco Bell and KFC failed to comply with a law requiring companies to limit the amount of credit-card information they print on<br />
customers’ receipts, according to two lawsuits filed earlier this month by customers who claim that expiration dates of their<br />
credit cards were illegally printed on the receipt. Attorneys in both cases are seeking class-action lawsuits with damages of up<br />
to $1,000 for each affected customer on top of expenses and attorney fees. (Courier-journal.com 7/23/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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365
Krispy Kreme<br />
Headquarters<br />
370 Knollwood St., Winston-Salem, North Carolina 27103 USA<br />
Tel: (336)725-2981 Fax: (336)773-3791<br />
www.krispykreme.com<br />
Ownership: Public<br />
Segment: Limited Service Donut<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 828,200 1,070,000 1,050,000<br />
Company-owned ($000) 326,200 425,000 500,000<br />
Franchised ($000) 502,000 645,000 550,000<br />
U.S. Number of Units 272 344 393<br />
Company-owned 113 117 175<br />
Franchised 159 227 218<br />
International Sales ($000) 200,000 95,000 60,000<br />
International Units 123 61 36<br />
Average Sales/Unit ($000) 2,580 2,700 2,950<br />
Concept Positioning |<br />
Krispy Kreme Doughnuts is a limited-service chain of doughnut shops. The publicly held chain operates 395 units in the United<br />
States, Canada, Australia, Indonesia, Japan, Korea, Hong Kong, the Philippines, Mexico, Kuwait, the United Arab Emirates<br />
and the UK, 159 of which are franchised.<br />
Most units are freestanding with drive-thru service. Units average 4,600 sq. ft. Krispy Kreme units have green-and-white<br />
interiors. An exhibition area for production includes a neon sign that lights when donuts are hot and fresh from the production<br />
line. Seating is largely at counters but a few tables are also available. Satellite units consist of hot shops (with donut heating<br />
technology), fresh shops and kiosks. Krispy Kreme also sells donuts to a variety of retail customers.<br />
Krispy Kreme was opened in 1937 in Winston-Salem, NC, by Vernon Rudolph. The company was sold to Beatrice Foods in<br />
1976, In 1982, Beatrice Foods sold it to a group of early franchisees and private investors including Joseph A. McAleer, Sr. In<br />
2000 the company completed its initial public offering.. In 2001, it opened its first international unit in Toronto, and in 2003 it<br />
opened its first unit in the UK. After several quarters of underperformance, the company is now focusing on closing or<br />
improving underperforming company stores, realigning company stores and franchise management, continuing international<br />
expansion, and opening small retail stores through domestic and international franchisees.<br />
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366
<strong>Menu</strong> Positioning |<br />
Krispy Kreme is open for breakfast, lunch and dinner, featuring a variety of donuts, coffee, espresso drinks, flavored milk and<br />
frozen beverages. Its signature item is the hot original glazed donut. Other donut flavors include glazed cinnamon, chocolate<br />
iced glazed, chocolate iced kreme filled, dulce de leche, glazed raspberry filled, glazed lemon filled, glazed cruller, maple iced<br />
glazed, sugar, cinnamon bun, cinnamon apple filled, traditional cake, powdered strawberry filled, glazed chocolate cake and<br />
glazed sour cream. Specialty donuts include New York Cheesecake, yeast-raised donut with cheesecake filling, cream cheese<br />
icing with graham cracker crumbles on top; Caramel Kreme Crunch, yeast-raised donut with caramel kreme filling, chocolate<br />
icing and topped with toffee pieces; Key Lime Pie—yeast-raised donut filled with key lime custard and topped with cream<br />
cheese frosting and graham crackers; and the Strawberry Shortcake—yeast-raised donut filled with strawberry kreme and<br />
topped with white icing and shortcake crumbles. Coffee is available in smooth, rich, bold and decaf varieties. Espresso drinks<br />
include Kaffe Kreme, mocha, cappuccino and latte. Frozen drinks include raspberry, latte, double chocolate and original<br />
kreme. <strong>Menu</strong> prices range from 79¢–$11.49. Checks average $4.<br />
Expansion Plans |<br />
Krispy Kreme’s location in Ashwaubenon, WI, closed on August 7. The store was acquired by Westward Dough in April 2006<br />
after its original owner, Oak Brook, IL-based Glazed Investments, filed for bankruptcy. The only Wisconsin locations still<br />
operating are in Brookfield and West Allis. (Thenorthwestern.com 8/8/07)<br />
Krispy Kreme closed four of its East Bay area locations in California on August 10. Only four freestanding Krispy Kreme<br />
locations remain in the Bay Area. The company said Krispy Kreme products would no longer be available in grocery and<br />
convenience stores in the area. A spokesman said Krispy Kreme “is in the midst of a turnaround and continues to evaluate its<br />
growth and positioning throughout the United States.” (Contracostantimes.com 8/18/07)<br />
Krispy Kreme closed its last Florida location in Boca Raton. The unit opened three years ago with consumers waiting all night<br />
for the shop’s grand opening. The location closed without warning and company officials did not comment on the closing.<br />
(Floridatoday.com 9/4/07)<br />
Promotion Plans |<br />
Krispy Kreme is offering a free dozen of its Original Glazed donuts to customers whose birthday falls on Friday, July 13. The<br />
move is in celebration of its 70th anniversary. The offer is only valid on July 13 at participating locations.<br />
(Battlecreekenquirer.com 7/9/07)<br />
Krispy Kreme is promoting football-shaped donuts in August and September. The chain has a marketing strategy to offer<br />
products for a limited time to coincide with holidays or seasonal events. The chain is also offering “Tailgate Packs” that consist<br />
of a dozen football-shaped donuts and a dozen classic glazed donuts. The donuts will be available through September 29 and<br />
on every weekend until the Super Bowl. (Bizjournals.com 8/28/07)<br />
Krispy Kreme is holding the Ultimate Krispy Kreme Recipe Contest to find a new donut dessert. The limited-service donut<br />
chain is partnering with Taste of the South magazine to create an original recipe using any variety of donuts. Participants can<br />
submit their entries online. The winner receives Lodge cast-iron cookware, a Viking mixer and Krispy Kreme gift cards. Entries<br />
will be accepted through mid-October. (Orlando Sentinel Online 9/5/07)<br />
<strong>Menu</strong> Development |<br />
Krispy Kreme is offering Snowman Doughnuts for a limited time starting in mid-November. (Company Website)<br />
Krispy Kreme plans to introduce a Krispy Kreme sandwich. The sandwich would feature a burger or a chicken breast on a<br />
sliced doughnut as a bun. By introducing the sandwich line, the company plans to pull itself from its declining sales. (Nation’s<br />
Restaurant News 11/13/06 p4)<br />
Krispy Kreme is looking to reinvigorate itself by adding new menu items and better coffee and beverage offerings as well as<br />
introducing a less costly footprint. Select franchisees have partnered with established coffee brands such as Caribou Coffee or<br />
The Coffee Bean & Tea Leaf to sell coffee in-stores. Krispy Kreme is also testing a downsized store in both international and<br />
domestic units that is about half the size of its original outlets. The company is also working on wholesale technologies such<br />
as frozen food products for grocery stores’ in-store bakeries. In 2005, Krispy Kreme closed several units and saw its corporate<br />
revenues decrease by 23.2%. The company recently agreed to settle a large securities class action lawsuit filed against it for<br />
about $75 million earlier this year. (Nation’s Restaurant News 11/13/06 p4)<br />
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367
Krispy Kreme Doughnuts Inc. is introducing heart-shaped doughnuts. The doughnuts are classic yeast-raised doughnuts cut<br />
into a heart shape and coated with white icing and white, red and pink sprinkles. The company is also giving out Valentine’s<br />
Day cards along with the doughnuts available now through February 14. (Company Release 1/17/07)<br />
Krispy Kreme plans to publicize the calorie content of its best-selling doughnut. It also expects to add a reduced-calorie wholewheat<br />
version and eliminate trans fats from all its doughnut varieties. In addition, the chain is rolling out reduced-price combos,<br />
which bundle its coffee with doughnuts. Krispy Kreme currently has 395 units. (NRN Daily NewsFax 2/02/07; The News &<br />
Observer 2/1/07)<br />
Krispy Kreme plans to add a whole-wheat doughnut in March. The item with have more fiber and 180 calories. The chain also<br />
added doughnuts featuring the logos of the Chicago Bears and Indianapolis Colts for the Super Bowl. (The News & Observer<br />
2/1/07)<br />
Krispy Kreme rolled out Original Glazed Yeast to its line of Doughnut Hole Cups. Other flavors include Original Glazed, Glazed<br />
Traditional Cake, Glazed Blueberry Cake and Glazed Chocolate Cake. The Doughnut Hole Cups come with 10 doughnut<br />
holes in a clear resealable plastic cup, appealing to diners on the go. (Convenience Store News 1/19/07; Company Release<br />
1/08/07; Baking Business 1/09/07)<br />
Krispy Kreme added a Strawberries and Kreme flavored donut. The unglazed items are filled with strawberries and crème<br />
filling and topped with white icing and shortcake crunch. (Company Release 4/17/07)<br />
Krispy Kreme expanded its beverage line, which now features its Chillers frozen drinks in a Kremey line and a Fruity line.<br />
Kremey flavors include Berries & Kreme, Oranges & Kreme, Lemon Sherbert, Chocolate Chocolate, Mocha Dream and Lotta<br />
Latte. Fruity varieties are Very Berry and Orange You Glad. (Nation’s Restaurant News 4/23/07 p9; Company Website)<br />
Krispy Kreme rolled out new flavors of Krispy Kreme Chillers, including Orange You Glad, Very Berry, Orange and Kreme,<br />
Berries and Kreme, Lemon Sherbert, Lotta Latte, Mocha Dream and Chocolate, Chocolate. The chain is offering a Lemon<br />
Splash Chiller through August. The items are priced at $2.49 for a 12-oz. and $3.49 for a 20-oz. size. (Company Release<br />
6/05/07; NRN Daily NewsFax 5/23/07)<br />
Krispy Kreme is testing Krispy Kreme Ice Kreme in vanilla, chocolate and swirl flavors at a store in Virginia. In addition to the<br />
ice cream, the company is offering Doughnut Sundaes, a Krispy Kreme doughnut topped with any of the ice cream fl avors as<br />
well as toppings such as chocolate sauce, sprinkles and caramel syrup. (JournalNow.com 6/13/07; TheState.com 6/14/07;<br />
NRN Daily NewsFax 6/14/07)<br />
Krispy Kreme Doughnuts has introduced a new multigrain cake doughnut, made with seven grains and topped with an oatmeal<br />
crisp crunch. The doughnut is prepared with molasses, brown sugar and pecan flavors. Krispy Kreme’s Multigrain item will be<br />
available in participating units beginning July 9th. (Company Release 6/27/07)<br />
Krispy Kreme has brought back Snowman Doughnuts for the holiday season. The snowman-shaped doughnuts are topped<br />
with white icing and stamped with a snowman’s face and buttons, and are available at participating stores through December<br />
31. (Yahoo! Finance 11/27/07)<br />
Franchise Activity |<br />
Krispy Kreme Doughnuts Inc. plans to sell select company-owned outlets to independent owners who would operate the units<br />
as franchises. Krispy Kreme’s 113 corporate-owned outlets bring in more than 70% of its total revenues. The company plans<br />
to retain corporate ownership of some stores in key markets. (The Business Journal of the Greater Triad Area 4/23/07)<br />
Krispy Kreme plans to begin selling franchises in all 50 states. Struggling with financial restatements, accounting practices<br />
investigations and declining sales, the company filed the franchise offering circular as its latest initiative to boost sales.<br />
(CNNMoney.com 5/15/07)<br />
Krispy Kreme franchisee Sweet Traditions filed for Chapter 11 bankruptcy protection. Sweet Traditions has development rights<br />
for Illinois, northwestern Indiana and eastern Missouri. (NRN Daily NewsFax 9/6/07)<br />
International Activities |<br />
Krispy Kreme’s foreign franchisees are looking to add 200 new restaurants in the next three to five years. Krispy Kreme plans<br />
to experiment with new restaurant designs in some of its international outlets. Krispy Kreme did not announce a timeline or any<br />
development agreements. (The News & Observer 2/01/07; Company Release 1/31/07)<br />
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368
Krispy Kreme plans to open a drive-thru at its first freestanding store in the Philippines. The outlet will be 200 square meters<br />
and is slated to debut in late June at the Greenhills Shopping Center. (BusinessWorld 4/17/07)<br />
Krispy Kreme plans to open an additional 60 international outlets this year. The company recently opened about 30 new units<br />
on top of the 28 international locations already in operation. Krispy Kreme did not specify the countries in which it expects to<br />
expand. (Nation’s Restaurant News 4/23/07 p9)<br />
Krispy Kreme, Dunkin’ Donuts and Mister Donut are expanding store counts in China, Taiwan, South Korea and Japan as<br />
Western fast food gains popularity in Asia. The first donut chains in Asia have exceeded targeted sales and experienced long<br />
lines of customers. (TheStar.com 6/12/07)<br />
Krispy Kreme opened its first unit in Saudi Arabia November 14. The new Jeddah location was opened with Americana Group<br />
Middle East, a Krispy Kreme master developer for the region. (Maktoob.com 11/19/07)<br />
Technology |<br />
Krispy Kreme units are among the first restaurants to accept Barclaycard OnePulse cashless payments in London, England.<br />
For purchases of £10 or under, cardholders touch their card against the reader instead of entering a PIN or a signature. In<br />
addition, cardholders use a standard chip and PIN credit card for larger transactions. Barclaycard predicts that consumers will<br />
be able to use its cashless card at several thousand retailers by the end of the year. (ClickPress 8/29/07)<br />
Personnel |<br />
Stanley Parker, S.V.P. of Marketing<br />
Steve Lineberger, S.V.P. of Operations<br />
Daryl Brewster, CEO<br />
Douglas R. Muir, CFO<br />
Steve Brunner, S.V.P. of Supply Chain<br />
Krispy Kreme is realigning its operations for franchised and company stores. As part of the changes, Steve Lineberger will<br />
become senior vice president and general manager of U.S. company operations and Jeff Welch will become senior vice<br />
president and general manager of global franchise operations and development. Previously, Lineberger served as chief<br />
executive with Sara Lee Corporation and Welch served as vice president of franchising and business development for what is<br />
now Yum! Brands Inc. In addition, Krispy Kreme Executive Vice President of Operations Jeff Jervik resigned, effective<br />
September 1. (Phz.corporate-ir.net 8/24/07)<br />
News & Other |<br />
Krispy Kreme Doughnuts Inc. reported overdue quarterly results for fiscal 2006. For the first quarter ended May 1 2005, the<br />
company reported a net loss of $53.4 million from a loss of $26.5 million for the same period last year. Revenues decreased<br />
16.8% to $152.5 million from $183.4 million. For the second quarter ended July 31 2005, the company reported a net loss of<br />
$14.9 million from a profit of $6.8 million. Revenues fell 25.7% to $139.8 million from $188.2 million. For the third quarter<br />
ended October 30 2005, the company reported a net loss of $29.7 million from a loss of $142.5 million for the same period last<br />
year. Revenues dropped 26.1% to $128.8 million from $174.4 million. (Company Release 11/9/06)<br />
Krispy Kreme has partnered with the 13th annual “Today Show Toy Drive” to give less-fortunate children across the country a<br />
happier holiday. The drive began on November 20 with customers visiting store locations to drop off new and unused toys.<br />
(Company Release 11/20/06)<br />
Krispy Kreme Doughnuts Inc. reported for the third quarter ended October 29 revenues decreased 9.3% to $117 million from<br />
$129 million for the same period last year. Same-store sales fell 9%. (Company Release 12/11/06)<br />
Krispy Kreme Doughnuts Inc. reported for the first quarter a net loss of $6 million from a loss of $53.4 million for the same<br />
period last year. Revenues fell 21.7% to $119.4 million. (Company Release 12/22/06)<br />
Krispy Kreme Doughnuts Inc. reported for the second quarter a net loss of $4.6 million from a loss of $14.9 million for the<br />
same period last year. Revenues decreased 19.5% to $112.5 million from $139.8 million. (Company Release 1/19/07)<br />
Krispy Kreme Doughnuts Inc. announced that it has filed with the Securities and Exchange Commission its Form 10-Q for the<br />
third quarter of 2005, following the company’s first, second and third quarter filings of fiscal 2007, making the company current.<br />
(Company Release 1/29/07)<br />
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369
Krispy Kreme Doughnuts Inc. reported for the fourth quarter ended January 28 a net loss of $24.4 million versus a loss of<br />
$37.7 million for the same period last year. Revenues decreased 8.2% to $112.2 million from $122.2 million. Same-store sales<br />
fell 6.4%. For the year ended January 28, the company reported a net loss of $42.2 million compared to a loss of $135.8<br />
million for 2006. Revenues fell 15.1% to $461.2 million from $543.4 million. Same-store sales declined 11.9%. (Company<br />
Release 4/12/07)<br />
Krispy Kreme Doughnuts Inc. submitted its Uniform Franchise Offering Circular to states where it is required in order to<br />
franchise in all 50 states. The new offering was filed last month. (NRN Daily NewsFax 5/15/07)<br />
Krispy Kreme is still trying to recover from its financial fall three years ago. While adding more advertisements, the company<br />
also needs to expand its products, especially coffee, Howard Penny, an analyst, comments. Another analyst, Andrew Wolf,<br />
believes that the company can still make it, but thinks that investors should wait for signs of a turnaround. Krispy Kreme’s<br />
shares fell 58¢ on June 4 after disappointing first-quarter results. (Forbes.com 6/5/07)<br />
Krispy Kreme Doughnuts Inc. approved amendments to the company’s stock incentive plan. The changes included extending<br />
the term of the plan by two years to June 30, 2012, and removing the plan’s sublimit on the number of shares that may be<br />
issued that involve awards of stock and stock appreciation rights. (Company Release 6/4/07)<br />
Krispy Kreme’s former largest operator, Great Circle Family Foods LLC, filed for Chapter 11 bankruptcy in late August. The<br />
Krispy Kreme franchisee will continue operating its 12 Southern California units while seeking a restructuring. Great Circle<br />
agreed in 1998 to open up to 42 units. However, the franchisee sued Krispy Kreme two years ago for allegedly conspiring to<br />
bankrupt Great Circle and acquire it for “cents on the dollar.” The plaintiffs also alleged that Krispy Kreme overcharged<br />
franchisees for equipment and supplies, misappropriated funds and improperly changed Great Circle’s payment terms. The<br />
dispute was settled last year and a Krispy Kreme subsidiary paid $2.9 million for three of Great Circle’s outlets. (Nation’s<br />
Restaurant News 9/3/07)<br />
Krispy Kreme laid off 20 employees, mostly at its corporate headquarters. The layoffs were part of the company’s realignment<br />
of its franchise and company stores operations. (Bizjournals.com 8/29/07)<br />
Krispy Kreme Doughnuts Inc. reported a net loss of $27 million for the second quarter ended July 29 compared to a loss of<br />
$4.6 million for the same period last year. Revenues declined 7.5% to $104.1 million from $112.5 million. Same-store sales<br />
decreased 0.5% systemwide. (Company Release 9/6/07)<br />
Krispy Kreme has sold some of its coffee-roasting assets to S&D Coffee Inc. for an undisclosed sum. The North Carolinabased<br />
donut chain also signed an agreement with S&D to continue supplying Krispy Kreme’s 411 donut shops with coffees.<br />
Krispy Kreme is seeking to reduce its supply-chain costs after two multiunit franchisees filed for Chapter 11 bankruptcy<br />
protection. Other initiatives include closing underperforming stores and lowering supply-chain costs by selling an under-used<br />
manufacturing facility. (NRN Daily NewsFax 10/5/07)<br />
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370
Krystal Company<br />
Headquarters<br />
1 Union Square, Chattanooga, Tennessee 37402 USA<br />
Tel: (423)757-1550 Fax: (423)757-5610<br />
www.krystalco.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 445,471 422,563 414,582<br />
Company-owned ($000) 282,922 265,860 259,371<br />
Franchised ($000) 162,549 156,703 155,211<br />
U.S. Number of Units 403 419 428<br />
Company-owned 233 242 244<br />
Franchised 170 177 184<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,192 1,096 1,065<br />
Concept Positioning |<br />
Krystal Hamburger Restaurants is the oldest quick-service sandwich chain in the Southeast region. Krystal is famous for it<br />
small square hamburgers and steamed-in onions. The Krystal Company owns and operates more than 420 corporate and<br />
franchised locations in 11 states.<br />
Krystal operates freestanding units averaging 2,208 sq. ft. that seat approximately 46-52 patrons. Most units feature drive-thru,<br />
sitdown and carryout service. A new restaurant design known as the SB is smaller in size and has a lighter, brighter dining<br />
atmosphere. The exterior has also been updated to have radius corners with red and yellow glazed bricks on the façade.<br />
Rody Davenport Jr. and J. Glenn Sherrill opened the first Krystal Restaurant in downtown Chattanooga, TN, in 1932. The<br />
founders served 1-oz. hamburgers, cold drinks, coffee, homemade pies, eggs, toast, bacon and waffles. In the 1950s, french<br />
fries and milk shakes were added to the menu, and chicken was incorporated in 1968. In 1985, Rody Davenport III bought out<br />
all other family interests and the chain began re-emphasizing its original 1-oz. burger. In 1992, Krystal issued its first public<br />
offering. Bankruptcy was filed in late 1995 to resolve employee lawsuits alleging violations of the Fair Labor Standards Act. In<br />
1997, the company was acquired by Port Royal Holdings and became private.<br />
<strong>Menu</strong> Positioning |<br />
Krystal's menu features burgers, salads, sandwiches, breakfast items, sides and beverages. The signature item is the 1-oz.<br />
square hamburger, steamed with mustard, pickles and onions. Other items include Krystal Pups (hot dogs), Krystal Chicks<br />
(chicken sandwiches), Chik’n Bites, Chili-Cheese fries, Chik salads, chili and chili-cheese. Breakfast items are cooked to order<br />
and include the Pancake Scrambler, Southwestern Scrambler, Sausage Gravy Scrambler, Chik Biscuit, Sausage Biscuit and<br />
Hash Brown Krispers. <strong>Menu</strong> prices range from 56¢–$5.89 and checks average $4.85.<br />
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Promotion Plans |<br />
Krystal Company launched an entertainment and networking community called Krystal Lovers Lounge on its website. The free<br />
site allows users to connect through personal profiles, video games and a message board. Krystal Lovers Lounge also offers a<br />
number of interactive portals where members can view TV spots, download games, participate in weekly polls, post messages<br />
and view Krystal video clips from YouTube. Also available through the site is Krystal Lovers Live, where guests can create<br />
profiles, upload pictures and send messages to other members. Krystal operates more than 400 locations in the South and<br />
Southwest. (Nation’s Restaurant News 12/16/06 p16)<br />
<strong>Menu</strong> Development |<br />
Krystal rolled out MilkQuakes, frozen drinks custom-made with real ice cream and milk. The items are available in vanilla,<br />
strawberry and chocolate and are topped with whipped cream. The 20-oz. drinks are priced at $2.79. (Nation’s Restaurant<br />
News Online 6/20/07)<br />
Personnel |<br />
Jeff Krause, Director of Operations<br />
Becky Conner, Director of Research & Development<br />
James Exum, CEO<br />
James Bear, CFO<br />
Mike Williams, V.P. of Marketing<br />
News & Other |<br />
The Krystal Co. has terminated discussions of a potential sale of the company to unidentified buyers. Instead of a sale, the<br />
company plans to aggressively expand its business through the development of company-owned outlets. Krystal is currently<br />
owned by a Tennessee-based investment company that includes Fred Exum, a former Wendy’s operator. (NRN Daily<br />
NewsFax 2/27/07)<br />
Krystal Co. opened an updated restaurant in Statesboro, GA, on November 19. The new company-owned unit replaces a<br />
smaller, franchise-owned Krystal that closed a year ago. In addition, the unit, which seats 50, has an updated décor, with white<br />
tile, chrome, stainless steel and a more contemporary appearance than the older store. The new store features free WiFi and<br />
credit-card and debit-card payment options. Krystal currently operates or franchises more than 400 restaurants throughout the<br />
South. (Company Release 11/19/07)<br />
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published.<br />
372
la Madeleine<br />
Headquarters<br />
6688 N. Central Expy. Suite 700, Dallas, Texas 75206 USA<br />
Tel: (214)696-6962 Fax: (214)692-8496<br />
www.lamadeleine.com<br />
Ownership: Private<br />
Segment: Limited Service Bakery/Café<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 126,500 125,000 118,000<br />
Company-owned ($000) 126,500 125,000 118,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 60 65 64<br />
Company-owned 60 65 64<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,025 1,975 1,950<br />
Concept Positioning |<br />
la Madeleine is an upscale, fast-casual chain of bakery/cafés specializing in high-quality French breads and baked goods<br />
reminiscent of authentic French country bakeries. The concept attracts an adult clientele with its artisan European-style menu<br />
offerings and relaxed bistro setting. Owned by an investor group led by French company Groupe Le Duff, la Madeleine<br />
operates dozens of units throughout the U.S., and is largely concentrated in the South.<br />
Constructed as endcap units in strip centers or as freestanding buildings, the goal of the chain is to become a neighborhood<br />
café for its patrons. Units average 4,000–4,500 sq. ft. with seating for 120–160 customers. Many also have outdoor seating for<br />
another 25–30 guests. Décor is reminiscent of a French country village. Walls are adorned with antique baker's tools, and<br />
exposed beams and wood floors echo the look of a kitchen or library. A wood-burning oven is also featured in each unit.<br />
Classical music and wine service enhances the sophisticated atmosphere. Bakery sales account for approximately 18% of<br />
total sales. The chain also has a commissary-bakery in each of its current markets.<br />
The chain was founded in 1983 in Dallas and, in 2001, was sold for $60 million to a group of investors led by Paris-based<br />
Groupe Le Duff, which operates 500 restaurants and bakeries in France. The chain slowed its expansion effort beginning in<br />
2000, but in 2006 the chain marked its entry into new markets with an opening in Houston, TX. With locations in Atlanta,<br />
Phoenix, Baton Rouge, New Orleans and Washington, DC, la Madeleine will continue to open new locations in several Texas<br />
cities, including San Antonio, Austin and Dallas/Ft. Worth. la Madeleine is exploring franchising opportunities to fuel future<br />
growth.<br />
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<strong>Menu</strong> Positioning |<br />
la Madeleine's fast-casual menu features breakfast favorites, omelets, hot and cold sandwiches, appetizers, pastas, entrées,<br />
crêpes, salads, soups, sides, bakery goods and beverages. Restaurants feature authentic French breads including baguettes,<br />
sourdough and seven-grain; other breads include focaccia, country wheat and raisin. The breakfast menu includes Quiche<br />
Lorraine, French Toast Royale and a variety of made-to-order omelets and eggs as well as yogurt parfaits, croissants, muffins,<br />
and pastries. Recently, a number of menu items have been added, including Seafood au Puff Pastry—puff pastry stuffed with<br />
sautéed shrimp, scallops and asparagus in a creamy lobster sauce, served with tomatoes and parsley; Mediterranean Pasta—<br />
portobello mushrooms, asparagus, tomatoes and Kalamata olives sautéed in a basil-infused olive oil and mixed with bowtie<br />
pasta and served with Parmesan and diced tomatoes; and the Croque Monsieur—classic French ham sandwich with cream<br />
sauce and Swiss cheese, baked to a golden brown. Salads include Caesar, Spinach, Wild Field and Pesto Pasta, and are<br />
available with chicken or salmon. The chain serves French roast coffees and beverages such as its popular Creme Glace iced<br />
drinks, which blend ice cream, ice and naturally flavored syrups like Chocolate, Orange and Strawberry (12-oz., $2.99; 20-oz.,<br />
$3.99). A wine list is also available. Restaurants are open daily for breakfast, lunch and dinner. A kids’ menu is available.<br />
<strong>Menu</strong> prices range from $2.29–$12.99. Checks average $9.50.<br />
<strong>Menu</strong> Development |<br />
La Madeleine French Bakery and Restaurant introduced seven new crepes. The items are Crepe Romanoff, Beef Crêpe<br />
Maison, Egg Crêpe Champignon, Pork Crêpe la Madeleine, Chicken Crêpe Riviera, Chocolat Mousse Crêpe and Shrimp<br />
Crêpe Florentine. (Company Website 3/7/07)<br />
La Madeleine added two new pizzas to its menu, Country Pizza and Pizza Parisien. Country Pizza features ham, bacon,<br />
mushrooms and onions over a rosemary-infused crust with melted Swiss cheese. The Pizza Parisien includes Roma<br />
tomatoes, garlic pesto sauce, kalamata olives and feta cheese on a rosemary pizza crust. (Company Website)<br />
La Madeleine introduced two new salads, Bistro Salade and Mediterranean Salade. Bistro Salade is a classic chopped salad<br />
with meats, eggs, cheese and fresh vegetables tossed in herb-infused vinaigrette dressing. Mediterranean Salade features<br />
vegetables, eggs, artichoke hearts and olives with feta cheese in a marjoram-infused vinaigrette, topped with chicken or<br />
salmon. (Company Website)<br />
La Madeleine added new crêpes to its menu lineup. New selections are Portobello Poulet Crêpe with balsamic-marinated<br />
chicken sautéed with garlic and roasted potatoes, tossed in a creamy mushroom sauce with portobello mushrooms and paired<br />
with green beans almondine, and Shrimp Crêpe Brittany, featuring sautéed shrimp with garlic, artichoke hearts, green onions<br />
and tomatoes tossed in a garlic cream sauce and served in herb crêpe with a side of rice Provençal and steamed broccoli.<br />
(Company Website)<br />
Personnel |<br />
Hal Gronsein, Director of Marketing<br />
Dan Fitzpatrick, Director of Purchasing<br />
Susan Dederan, Senior Culinary Director<br />
Bill Schaffler, V.P. of Finance<br />
Philip Costner, COO<br />
Greg Buchanan, President<br />
La Madeleine Bakery, Café and Bistro hired Philip Costner as Chief Operation Officer. Previously, Costner served as Vice<br />
President of Food and Beverage for Carlson Restaurants Worldwide. Costner replaces Roz Mallet, who resigned in March.<br />
(NRN Daily News Fax 8/14/07)<br />
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published.<br />
374
Landry's Seafood House<br />
Headquarters<br />
1510 W. Loop South, Houston, Texas 77027 USA<br />
Tel: (713)850-1010 Fax: (713)850-7205<br />
www.landrysseafoodhouse.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 87,000 88,000 84,000<br />
Company-owned ($000) 87,000 88,000 84,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 23 24 24<br />
Company-owned 23 24 24<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,700 3,600 3,450<br />
Concept Positioning |<br />
Landry's Seafood House is a full-service traditional Gulf Coast casual-dining seafood house featuring an extensive menu of<br />
fresh fish, crab, lobster, shrimp and other entrées. Appealing to a broad-based clientele, units are open for lunch and dinner.<br />
Landry’s Seafood House is owned and operated by Landry’s Restaurants Inc. and does not franchise. Landry’s Restaurants<br />
also owns several other national chains, including Rainforest Café, Joe’s Crab Shack and Chart House. There are currently 23<br />
Landry’s Seafood House locations in the U.S.<br />
No two Landry’s Seafood House units are identical, although they do share large theater-style marquees over each entrance<br />
with a distinctive wood and brick facade, thus creating the feel of an old traditional seafood restaurant. They range in size from<br />
5,000–16,000 sq. ft., with an average size of around 8,000 sq. ft., seating 215 people in the dining room and another 10–20<br />
guests in the bar area. Interiors feature colorful murals depicting motifs applicable to each location or regional area. Landry’s<br />
seeks unique locations; for example, a Corpus Christi, TX, unit is on a barge, and a New Orleans location is in the heart of the<br />
French Quarter.<br />
Landry’s Seafood House got its start as a family-owned restaurant in Lafayette, LA. In 1980, the first Landry’s unit opened in<br />
Katy, TX. A group that included Tilman J. Fertitta, Landry’s president and CEO, founded this location. Fertitta then acquired<br />
controlling interest in Landry’s Seafood House in 1986. The company went public in 1993 and operates more than 300<br />
restaurant properties in the U.S. Landry’s consistently expands its concepts, although the company has disclosed no specific<br />
expansion plans this year.<br />
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375
<strong>Menu</strong> Positioning |<br />
Landry’s menu showcases fresh seafood for lunch and dinner. The menu features hot and cold appetizers, oysters, soups,<br />
salads, sandwiches, fish, shrimp, platters, pasta, shellfish, beef and chicken, toppings, add-ons, sides and beverages. Fresh<br />
fish and shellfish selections can be broiled, grilled or fried, and include Pontchartrain, Red Snapper, Mahi Mahi, Salmon Fillet,<br />
Tuna Steak, , Chilean Sea Bass, Catfish Fillets, shrimp, crawfish, Jumbo Lump Crab Cakes and lobster. Signature menu items<br />
include Stuffed Shrimp Enbrochette—jumbo shrimp wrapped in bacon with seafood stuffing, Jack cheese and jalapeños with<br />
mornay sauce; Chilean Sea Bass—Parmesan-crusted sea bass with Mornay sauce, pine nuts, artichoke hearts and<br />
mushrooms, topped with shrimp and scallops; Blackened Chicken Fettuccine—chicken breast strips over pasta with<br />
mushrooms, tomatoes and green onions; and the Alaskan King Crab Legs—1 ½-lb. of steamed crab served with a baked<br />
potato. The restaurant also offers its seasonal Autumn’s Harvest dishes, which include Crispy Duck with Grand Marnier<br />
Cranberry Demi, Cedar Planked Oysters and Hibachi Salmon with Tempura Harvest Vegetables. Specialty toppings are<br />
available with any entrée and include Melissa—sautéed shrimp, scallops, jumbo lump crabmeat and mushrooms;<br />
Pontchartrain— creamy white wine sauce with mushrooms and jumbo lump; Landry—Cheddar cheese wine sauce with jumbo<br />
lump and shrimp; Victoria—shrimp, jumbo lump, white wine sauce, tomatoes, capers and green onions; and the Crawfish<br />
Etouffee—a tan roux with sautéed crawfish tails. Other popular menu items include Lobster Bisque, Avocado Lump Crab<br />
Salad, Po-boys, and Filet Mignon. Full liquor service is available. A kids’ menu is also available. <strong>Menu</strong> prices range from<br />
$3.99–$36.99. Checks average $23.<br />
Personnel |<br />
Toni Niece, Director of Marketing<br />
Joe Leahy, Director of Purchasing<br />
Jefferey Cantwell, S.V.P. of Development<br />
Tilman J. Fertitta, CEO<br />
Rick Liem, CFO<br />
Richard Ervin, V.P. of Operations<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
376
LaRosa's Pizzeria<br />
Headquarters<br />
2334 Boudinot Ave., Cincinnati, Ohio 45238 USA<br />
Tel: (513)347-5660 Fax: (513)922-2710<br />
www.larosas.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 128,700 123,200 121,200<br />
Company-owned ($000) 31,630 30,275 31,600<br />
Franchised ($000) 97,070 92,925 89,600<br />
U.S. Number of Units 59 58 56<br />
Company-owned 15 14 15<br />
Franchised 44 44 41<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,145 2,124 2,164<br />
Concept Positioning |<br />
LaRosa’s Pizzeria is widely recognized for pizza as well as a full menu of more than 40 Italian-inspired selections, including<br />
calzones, hoagies, pasta and salads. Customers can dine-in with full service or order for carryout and/or delivery. Based in<br />
Cincinnati, OH, the chain enjoys a loyal following in its base market, even beating national pizza chains in market share. The<br />
company remains headquartered in Cincinnati and operates 58 franchised and company-owned units in Ohio, Indiana and<br />
Kentucky.<br />
The chain has three prototypes, with most located in small strip shopping centers and averaging 3,500 sq. ft. There are also a<br />
large number of freestanding units averaging 6,000 sq. ft. with seating for 95–150 patrons. Its third prototype is for take-andbake,<br />
delivery and carryout only and is located outside the reach of full-service sites. These quick-service units average 2,000<br />
sq. ft. Recently, LaRosa’s opened its latest “2010” prototype in Centerville, OH. This most recent design upgrade includes a<br />
full bar, a pick-up area offering additional retail products and an expanded menu of entrées. Catering and delivery service is<br />
available.<br />
Buddy LaRosa opened the first LaRosa’s Pizzeria in 1954 in the Little Italy section of Cinncinnati, OH. The company has not<br />
disclosed future expansion plans.<br />
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377
<strong>Menu</strong> Positioning |<br />
LaRosa's menu features a wide variety of pizzas, appetizers, baked bread, calzones, hoagies and beverages. Signature items<br />
include its Specialty Topper pizzas, which features the Deluxe—pepperoni, sausage, mushrooms, ground beef, onions, green<br />
peppers and extra cheese; Prima Veggie—roma tomatoes, mushrooms, red onions, spinach and green olives; Meat—<br />
pepperoni, sausage, ground beef, Capocolla ham, bacon and extra cheese; and the Lite Topper Deluxe—mushrooms, onions,<br />
green peppers, pepperoni, Capocolla, roma tomatoes and cheese. Pizzas are available in small, medium and large sizes.<br />
Three types of crusts are offered—Traditional Thin Crust, Crispy Pan or Super Crust. A selection of 18 toppings is available.<br />
Specialty “Focaccia Style” pizzas are also popular, and include the Florentine and the Roma. Appetizers include chicken<br />
tenders, chicken wings, garlic bread sticks, fried mozzarella cheese sticks, minestrone soup, garden salad and french fries.<br />
Hoagy sandwiches include LaRosa’s Steak Hoagy—chopped steak, provolone cheese, tomatoes, onions and a choice of<br />
dressing; Baked Buddy—Capocolla ham, Mortadella, salami, provolone cheese baked and served with pickles, onions and<br />
pizza sauce; and the Tuna Fish Hoagy—tuna fish with lettuce, tomato and mayonnaise. A kids’ menu offers the usual kidfriendly<br />
favorites such as macaroni & cheese, spaghetti & meatballs and chicken tenders. The dessert selection includes<br />
cheesecake and hot fudge brownies. Beer and wine service is available. <strong>Menu</strong> prices range from $1.39–$15.79. Checks<br />
average $17.91.<br />
Personnel |<br />
Maryanne Firth, Director of Research & Development<br />
Pete Bucani, E.V.P. of Marketing<br />
TD Hughes, CEO<br />
Mike Selker, CFO<br />
Nancy Wilson, V.P. of Purchasing<br />
Michelle McMahon, E.V.P. of Operations<br />
Mark LaRosa, E.V.P. of <strong>Menu</strong> & Product Development<br />
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published.<br />
378
Lee's Famous Recipe Chicken<br />
Headquarters<br />
25 Central Square Suite B2, P.O. Box 4808, Santa Rosa Beach, Florida<br />
32459 USA<br />
Tel: (850)534-0913 Fax: (850)534-0917<br />
www.leesfamousrecipe.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
Chain Brands<br />
Mrs. Winner's Chicken & Biscuits<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 105,000 103,000 102,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 105,000 103,000 102,000<br />
U.S. Number of Units 150 150 150<br />
Company-owned - - -<br />
Franchised 150 150 150<br />
International Sales ($000) - - 1,000<br />
International Units - - 2<br />
Average Sales/Unit ($000) 685 670 665<br />
Concept Positioning |<br />
Lee's Famous Recipe Chicken is a limited-service concept famous for pressure-fried and crispy chicken. The Famous Recipe<br />
chicken is pressure-fried and the crispy variety is an open-vat fried product. Lee’s specializes in a fresh signature offering that<br />
is never frozen. The chain is 100% franchised and is owned by Lee’s Famous Recipes Inc., which also operates Mrs. Winner’s<br />
Chicken & Biscuits.<br />
Units average 2,200 sq. ft., with a drive-thru window and seating for 60. Lee's launched an image enhancement program in<br />
which it changed the roofs of units from green to red, the outside walls from white to beige, added neon to its exteriors and<br />
replaced signs with new logos.<br />
Harold Omer and Lee Cummings, Colonel Sanders’ nephew, founded the chain in 1966 in Ohio. Cummings was the first<br />
president of KFC and creator of the “Famous Recipe” in 1962. The company remained in private hands until it was acquired by<br />
Shoney's in 1981. The name of the chain was changed to "Lee's Famous Recipe," after Cummings in 1983. Shoney's<br />
announced it had sold the chain to RTM Restaurant Group in 1995. In early 2000, RTM sold its controlling interest to Winners<br />
International, a strategic partnership with RTM and BancBoston Development Co. Winners International also owns the Mrs.<br />
Winners Chicken and Biscuits chain. RTM retained a 20% stake in the new company. However, in 2002, RTM rolled Winners<br />
International operations under Arby's operations leadership. In 2003, Lee’s Famous Recipe, Inc., bought Lee’s Famous Recipe<br />
Chicken from the RTM Group. In 2006, Mrs. Winners was acquired Lee's Famous Recipe Inc. for an undisclosed sum. The<br />
company has not disclosed future expansion plans.<br />
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published.<br />
379
<strong>Menu</strong> Positioning |<br />
Lee's Famous Recipe Chicken is a limited-service operation specializing in fried chicken and traditional side items for lunch<br />
and dinner. The chain boasts a menu that emphasizes the freshness of its chickens, which are delivered fresh to each unit and<br />
are never frozen. Its signature items are its famous chicken items, moist and tender, and its crispy marinated chicken with<br />
special sauces for a spicy flavor. A full combo meal includes two pieces of chicken as well as coleslaw, a biscuit and a choice<br />
of sides. Other popular items include country-fried steak, barbecue chicken sandwiches, chicken tenders and livers. Sides<br />
include mashed potatoes and gravy, green beans, potato wedges, macaroni & cheese, baked beans and corn on the cob.<br />
Desserts include brownies, cakes and pies. Lee’s also offers catering services for up to 2,500 people. A kids’ menu is<br />
available. Prices range from $2.89–$6.69 for dinners and $13.99–$28.99 for family meal deals. Checks average $6.<br />
Personnel |<br />
Chuck Copper, COO<br />
Jeff Miller, President<br />
Lori Seering, V.P. of Marketing<br />
Don Kupliski, V.P. of Purchasing & <strong>Menu</strong> Development<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
380
Legal Sea Foods<br />
Headquarters<br />
1 Seafood Way, Boston, Massachusetts 02210 USA<br />
Tel: (617)530-9000 Fax: (617)530-9674<br />
www.legalseafoods.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 203,000 190,108 179,547<br />
Company-owned ($000) 203,000 190,108 179,547<br />
Franchised ($000) - - -<br />
U.S. Number of Units 34 31 31<br />
Company-owned 34 31 31<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 6,250 6,100 5,600<br />
Concept Positioning |<br />
Legal Sea Foods is a full-service chain of premium positioned restaurants that specializes in fresh seafood. The chain is<br />
privately held and operates 34 company-owned locations in Florida and Massachusetts.<br />
Units average 6,250 sq. ft. and are generally freestanding. All are decorated differently but each gives the feeling of a “clean”<br />
look, frequently through the use of blue and white colors, large windows and mahogany woodwork. Oyster bars located in<br />
each unit serve appetizers for those waiting for tables. Each unit reports high volume with as many as 7,000 entrees served<br />
per week. The company prepares and processes its own fish, salad dressings, sauces, desserts and bases in a quality control<br />
center that delivers to the units every day. The company also operates a mail-order division, Legal Sea Foods Mail Order,<br />
which ships fresh seafood all over the U.S., a retail market and a catering division.<br />
Legal Sea Foods first opened in 1968 in Cambridge, MA, by George Berkowitz and his wife. The restaurant had picnic tables<br />
where people ate family style. The fish was prepared two ways: Fried or broiled, and was served on paper plates. In 1997, the<br />
company opened an new Caribbean casual concept in Boston called The Legal C Bar. The chain recently opened a location in<br />
King of Prussia, PA.<br />
<strong>Menu</strong> Positioning |<br />
Legal Sea Foods' is open for lunch and dinner and its signature offerings include more than 40 varieties of fish. Classic menu<br />
selections include grey sole, halibut, trout, bass, tuna, swordfish and salmon. Uncommon varieties range from skate to cusk to<br />
monkfish. Specialties include Baked Shrimp stuffed with Maryland crab, Grilled Swordfish, Crab Cakes and several lobster<br />
entrees. Legal Sea Foods also menus a list of Value Dinners, comprised of fish, starch and vegetable. Full liquor service is<br />
available. Entree prices range from $8.95–$39.95. Checks average $27.<br />
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published.<br />
381
Promotion Plans |<br />
Legal Sea Foods debuted a new playful marketing campaign using print ads, posters, ads in movie theaters, radio ads and its<br />
own Legal website. The campaign tagline is “If it isn’t fresh, it isn’t Legal,” with the promise that the restaurant serves only<br />
“really fresh fish.” The chain operates 34 restaurants in eight states and Washington, D.C. The TV spots are slated to run in<br />
the Boston, New York and Washington markets. The radio ads will air in metropolitan New York. (New York Times Online<br />
2/05/07)<br />
Technology |<br />
Legal Sea Foods has introduced its new self-checkout that allows customers to pay at their tables. The move stems from<br />
concerns about credit-card fraud. The self-checkout concept is available in all of the restaurant’s 34 locations. (Boston.com<br />
3/14/07)<br />
Personnel |<br />
Rich Vellante, Executive Chef<br />
Ann Flannery, Director of Marketing<br />
Alan Dempsey, S.V.P. of Operations<br />
Roger Berkowitz, CEO<br />
Mark Synott, CFO<br />
Bill Holler, V.P. of Purchasing & Operations<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
382
Little Caesars<br />
Headquarters<br />
2211 Woodward Ave., Detroit, Michigan 48201 USA<br />
Tel: (313)983-6000 Fax: (313)983-6435<br />
www.littlecaesars.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 830,000 780,000 700,000<br />
Company-owned ($000) 200,000 180,000 160,000<br />
Franchised ($000) 630,000 600,000 540,000<br />
U.S. Number of Units 2,025 1,888 1,731<br />
Company-owned 500 428 366<br />
Franchised 1,525 1,460 1,365<br />
International Sales ($000) 90,000 85,000 70,000<br />
International Units 275 250 150<br />
Average Sales/Unit ($000) 435 425 430<br />
Concept Positioning |<br />
Little Caesar Enterprises Inc. owns, operates and franchises pizza stores that are largely carryout-only and do business under<br />
the trade name Little Caesars Pizza. The quick-service chain specializes in a variety of pizzas, as well as cheese-bread,<br />
salads and sandwiches. Approximately 80% of Liitle Caesars stores are franchised.<br />
Most units are located in strip shopping centers. They typically average 1,000 sq. ft. and do not offer dine-in seating. Stores<br />
are open daily for lunch and dinner. The company operates multiple distribution centers for food, paper products and<br />
equipment. Blue Line Distributing, a division since 1972, is the full-service distributor for all units.<br />
Mike and Marian Ilitch opened the first Little Caesars in Garden City, MI, in 1959. The first franchise was sold in 1962. Little<br />
Caesars plans to expand nationwide, with particular focus in the Northeastern US. The chain envisions between 600 and<br />
1,000 new franchised stores to be in operation by 2009. Its new target market for growth is the South; the company hopes to<br />
launch 40 new stores in Atlanta by 2010. Other sites will include locations in St. Louis, Washington, D.C., Portland, OR,<br />
Philadelphia and Minneapolis.<br />
<strong>Menu</strong> Positioning |<br />
Little Caesars' menu features wings, salads, sandwiches, bread, pizzas and beverages for lunch and dinner. Its signature item<br />
is the original round 14-in. pizza prepared with the customer’s choice of toppings. Toppings include cheese, pepperoni, Italian<br />
sausage, ham, beef, green pepper, black olive, mushroom, pineapple and banana pepper, among others. Pizzas are also<br />
available in deep dish, and Baby Pan! Pan!, which features two individual-sized deep dish pizzas with cheese and pepperoni<br />
for one price. Other menu items include Crazy Bread, Crazy Sauce, Italian Cheese Bread, and Caesar Wings. <strong>Menu</strong> prices<br />
range from $1.00–$6.00. Checks average $7.49.<br />
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published.<br />
383
Expansion Plans |<br />
Little Caesar’s Enterprises will focus its 2007 expansion efforts in the Hawaii, Alaska, Texas, New Jersey, New York, and<br />
North and South Carolina markets. The company’s president said that the chain is looking to grow by hundreds of stores this<br />
year but did not provide a specific number. (HonoluluAdvertiser.com 2/21/07)<br />
Little Caesar’s Pizza is re-entering central Florida markets nearly a decade after more than a dozen units in the region were<br />
shuttered due to underperformance. However, recent sales increases for the chain are fueling its growth nationwide, leading to<br />
the upcoming return of franchised units to central Florida. The first units planned by Roberts Strategic Management Group,<br />
which holds franchising rights in the area, are scheduled to open next month. (NewsJournalOnline.com 6/26/07)<br />
Little Caesar Enterprises Inc. celebrated its first store under the Little Caesars Veterans Program in Fort Myers, FL. The unit is<br />
located in Gladiolus Gateway Plaza. The program assists veterans in opening Little Caesars franchises providing financing<br />
and equipment. (Lexisnexis.com 7/31/07)<br />
Little Caesars exceeded its 2006 unit growth plans. The chain opened several hundred locations worldwide by expanding into<br />
new markets and increasing its franchisee base. Highlights include strong sales, new products and promotions, the launch of<br />
the Little Caesars Veterans Program and philanthropic initiatives. (Company Release 2/21/07)<br />
Franchise Activity |<br />
Little Caesar Enterprises launched a program through the end of 2008 to reduce franchise and equipment fees for military<br />
veterans looking to start their own franchise. The company will reduce its franchise fee by $5,000 for a first store and give a<br />
$5,000 credit on an initial equipment order. Veterans who have become disabled can have their initial $20,000 franchisee fee<br />
waived and receive a $10,000 credit on their first equipment order as well as other benefits worth about $68,000. (NRN Daily<br />
NewsFax 11/13/06)<br />
Little Caesar’s franchisee Megan & Me Investments of Tennessee has sold 16 pizza outlets to Restaurant Management<br />
Group. The units are located throughout Tennessee and Virginia. Restaurant Management Group is also Hardee’s fourthlargest<br />
franchisee, with 45 outlets in Tennessee, Virginia, West Virginia, Ohio and Pennsylvania. (NRN Daily NewsFax<br />
1/19/07; Charlotte Business Journal 1/18/07)<br />
Personnel |<br />
Scott Fisher, V.P. of Finance<br />
Christopher Ilitch, CEO<br />
Linda Jaworski, V.P. of Marketing<br />
Kati Jung, V.P. of Development<br />
News & Other |<br />
Little Caesars won a bid to provide more than 18,000 14-in. pizzas for the Woodland, CA, schools during the 2007-2008<br />
school year. The chain will provide mostly pepperoni and cheese pizzas. Round Table pizza lost the bid. Little Caesars won at<br />
$120,552.25 while Round Table was asking $122,134.75. (Dailydemocrat.com 7/18/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
384
Logan's Roadhouse<br />
Headquarters<br />
3011 Armory Dr. Suite 300, Nashville, Tennessee 37204 USA<br />
Tel: (800)815-9056 Fax: (615)885-9057<br />
www.logansroadhouse.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 510,000 469,000 411,878<br />
Company-owned ($000) 435,000 398,000 346,778<br />
Franchised ($000) 75,000 71,000 65,100<br />
U.S. Number of Units 165 158 139<br />
Company-owned 140 134 118<br />
Franchised 25 24 21<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,183 3,160 3,103<br />
Concept Positioning |<br />
Logan’s Roadhouse is a casual-dining chain reminiscent of an American roadhouse. Specializing in USDA choice, hand-cut<br />
aged steaks, as well as ribs, chicken and seafood entrées, Logan’s is designed to have a broad appeal as it offers generous<br />
portions of popular American food at moderate prices. There are currently 143 company owned and franchised locations<br />
across the country.<br />
Current units are all freestanding and average 7,800 sq. ft. with seating for 292, including 45 in the bar area operating from 11<br />
a.m. to 10 p.m. for lunch and dinner. Patrons can watch their meals cook on gas-fired mesquite grills while relaxing in<br />
comfortable bar areas and listening to up-beat country music in the background. Peanut-shell laden floors and hand painted<br />
murals depicting scenes of American roadhouses of the 1940s and 1950s complements the classic roadhouse theme. In<br />
addition, the company plans to begins building and opening a new prototype design that management believes will be more<br />
operationally efficient.<br />
Developed with the financial joint venture help of O’Charley’s Inc., the first unit opened in 1991 and was acquired by the<br />
company in 1992. In mid-1995, Logan’s completed its initial public offering. In early 1999, CBRL Holdings, Inc., the parent<br />
Cracker Barrel Old Country Store, completed its acquisition of the company. In 2006, CBRL filed for a public stock offering of<br />
Logan’s Roadhouse. Later that year, Bruckmann, Rosser, Sherrill & Co. Inc. completed its purchase of Logan’s Roadhouse,<br />
Inc. Future expansion plans have not been disclosed.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
385
<strong>Menu</strong> Positioning |<br />
Logan's menu features appetizers, salads, burgers and sandwiches, chicken, seafood, steak, chops, ribs, combo entrées,<br />
express lunches, sides, desserts and beverages. Signature items are brown sugar and cinnamon baked sweet potatoes and<br />
premise-made yeast rolls. Popular menu items include Enormous Nachos, the 8-oz. Onion Brewski, Southwest BBQ Chicken,<br />
Logan’s Club Salad and Logan’s Famous Baby Back Ribs. Other menu items include Smokin’ Hot Grilled Wings, two skewers<br />
of grilled wings with Tabasco flavored chipotle sauce; NY Strip Steak Sandwich, a 6-oz. New York Strip steak on a toasted<br />
French roll with lettuce, tomato, onion and horseradish sauce; Lightnin' Hot Shrimp Bucket, a half-pound of peel-and-eat<br />
shrimp served on ice in a bucket with cocktail sauce; Triple Shrimp Skewers, shrimp grilled with zucchini and red onion; and<br />
the Fire Grilled Steak & Skewers, a 9-oz. sirloin with grilled vegetable skewer. Express lunch menus have specially priced<br />
soups, salads, burgers and sandwiches that are served in less than 15 minutes. Full liquor service is offered. Kids’ menus are<br />
available. <strong>Menu</strong> prices range from $1.99–$19.99. Checks average $15.41.<br />
Personnel |<br />
Chris Plunkett, S.V.P. of Operations<br />
Tom Vogel, CEO<br />
Amy Bertauski, CFO<br />
Lynne Wildman, V.P. of Purchasing<br />
Steve Anderson, V.P. of <strong>Menu</strong> & Culinary Development<br />
Chastity Meyer, Senior Marketing Manager<br />
Logan’s Roadhouse Inc. named Amy Bertauski as chief financial officer. Previously, Bertauski served as accounting director<br />
for the company. (Company Release 12/15/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
386
Lone Star Steakhouse and Saloon<br />
Headquarters<br />
224 E. Douglas Ave. Suite 700, Wichita, Kansas 67277 USA<br />
Tel: (316)264-8899 Fax: (316)264-5988<br />
www.lonestarsteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 427,000 489,900 480,700<br />
Company-owned ($000) 420,000 483,000 475,000<br />
Franchised ($000) 7,000 6,900 5,700<br />
U.S. Number of Units 207 254 254<br />
Company-owned 203 250 251<br />
Franchised 4 4 3<br />
International Sales ($000) 19,000 17,500 19,000<br />
International Units 13 12 14<br />
Average Sales/Unit ($000) 1,850 1,950 1,900<br />
Concept Positioning |<br />
Lone Star Steakhouse & Saloon is a chain of full-service, mid-priced casual dining restaurants specializing in mesquite-grilled<br />
steaks, ribs, chicken and fish. The chain is privately held by Lone Star Steakhouse and Saloon Inc., which operates 220 units<br />
worldwide, four of which are franchised.<br />
Planked wooden floors and subdued lighting create a “Texas roadhouse” atmosphere. . Portion sizes are “Texas-sized” to go<br />
along with the theme. Units are mostly freestanding, averaging 5,800 sq. ft. and seating 220 guests. A bar area adjacent to the<br />
dining room accommodates waiting customers and overflow. Some units also have additional seating on an outdoor patio.<br />
Takeout is available.<br />
Lone Star opened in 1989 and the company was incorporated in 1991 as Texas Lone Star, Ltd. In 1992, it reorganized as<br />
Lone Star Steakhouse & Saloon, Inc. and made its first public offering. Proceeds were used to finance expansion and<br />
development of additional restaurants. In 2006, Lone Star Steakhouse & Saloon Inc. announced its acquisition by Dallasbased<br />
private equity firm Lone Star Funds for $600 million. Lone Star Steakhouse & Saloon Inc. also operates Texas Land &<br />
Cattle Steak House, Sullivan's Steakhouse and Del Frisco's Double Eagle Steak House. Currently, Lone Star Steakhouse &<br />
Saloon has no major expansion plans.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
387
<strong>Menu</strong> Positioning |<br />
Lone Star Steakhouse & Saloon is open for lunch and dinenr, with a menu featuring appetizers, salads, soups and chili,<br />
mesquite-grilled steaks, combos, prime rib, specialties, sides, desserts and beverages. The signature item is steak, aged 21<br />
days for maximum flavor and tenderness and cooked over mesquite wood. Most popular steak dishes include San Antonio<br />
Sirloin, sizzling center-cut sirloin available in 9- or 12-oz. sizes; Five-Star Filet, filet mignon wrapped in bacon; and Cajun<br />
Ribeye, a 16-oz. hand-cut ribeye marinated in Cajun spices. Prime rib is available in 8-, 12- and 16-oz. size portions. Other<br />
specialties include ribs, grilled chicken, salmon, beef and chicken kabobs, grilled pork chops and grilled shrimp. A 4-oz. lobster<br />
tail, available at a combo or add-on. Appetizers and salads include Amarillo Cheese Fries, crunchy fries smothered in<br />
Monterey Jack and Cheddar cheese, topped with bacon and served with Texas ranch dressing; Half Rack of Ribs, tender,<br />
slow-cooked pork ribs basted in tangy sauce; Signature Lettuce Wedge, a wedge of iceberg lettuce with bleu cheese and<br />
tomatoes; and El Paso Salad, with greens, Cheddar cheese, red onions, tomatoes, mushrooms, bacon, croutons and choice<br />
of dressing. Dinners include salad, bread and butter and choice of baked or sweet potatoes, steak fries or Texas rice. Full<br />
liquor service is available, as is a children’s menu. <strong>Menu</strong> prices range from $6.99–$22.99. Checks average $14.<br />
Personnel |<br />
Marc Buehler, CEO<br />
John White, CFO<br />
Dave Kraszeski, V.P. of Purchasing<br />
Mark Mednansky, COO<br />
Karen Young, V.P. of Research & Development<br />
Karen Young, V.P. of Marketing<br />
Lone Star Steakhouse & Saloon hired Marc Buehler as Chief Executive Officer of the Casual Dining Division. Previously,<br />
Buehler served as President and Chief Executive Officer of Romacorp Inc. (Hotelnewsresource.com 7/30/07)<br />
News & Other |<br />
Lone Star Steakhouse & Saloon will overhaul its menu and renovate units. The chain, which has not been updated since the<br />
mid-’90s, is bringing in food consultants to help modernize the menu. To pay for renovation and future expansion, Lone Star is<br />
considering closing poorly-performing locations and beginning a franchising program. The Wichita based steak chain was sold<br />
last year to Lone Star Funds of Dallas for more than $600 million. (The Wichita Eagle Online 9/22/07)<br />
Lone Star Funds plans to spin off a stake in its Del Frisco’s Double Eagle Steak House and Sullivan’s Steakhouse brands<br />
through a $100 million IPO. The new company, Del Frisco’s Restaurant Group Inc., will operate six Del Frisco stores and 16<br />
Sullivan’s restaurants. Lone Star Funds will use the IPO proceeds to repay debt. Private equity firm Lone Star plans to<br />
maintain a controlling interest in the new company. (Nation’s Restaurant News Online 10/24/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
388
Long John Silver's<br />
Headquarters<br />
1900 Colonel Sanders, Louisville, Kentucky 40213 USA<br />
Tel: (502)874-3000 Fax: (502)874-3050<br />
www.ljsilvers.com<br />
Ownership: Private<br />
Segment: Limited Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 740,000 785,000 783,000<br />
Company-owned ($000) 345,000 459,000 490,000<br />
Franchised ($000) 395,000 326,000 293,000<br />
U.S. Number of Units 1,121 1,169 1,200<br />
Company-owned 460 611 700<br />
Franchised 661 558 500<br />
International Sales ($000) 20,000 19,000 16,000<br />
International Units 35 34 34<br />
Average Sales/Unit ($000) 660 671 652<br />
Concept Positioning |<br />
Long John Silver’s is the nation's largest limited-service fish and seafood chain, specializing in batter-dipped fish, chicken,<br />
shrimp and hushpuppies. YUM! Brands operates and franchises more than 1,200 Long John Silver’s worldwide.<br />
Long John Silver’s has completed an extensive drive-thru and image enhancement program in all company stores. The former<br />
"wharfside" exterior and traditional nautical have been replaced with a bright yellow and deep blue color scheme. Buildings are<br />
typically freestanding, with seating for 96, though some are co-branded with other YUM! chains or kiosks in business and<br />
shopping centers and nontraditional locations. Most restaurants offer drive-thru, sitdown and carryout service.<br />
The first Long John Silver’s was opened in 1969 by Warren Rosenthal, chairman of original parent Jerrico, Inc. In 1989, the<br />
chain was acquired by a group of investors. The company filed for Chapter 11 bankruptcy in 1998 and emerged in 1999 under<br />
an approved acquisition by Yorkshire Global Restaurants. Since 2002, Long John Silver’s has been owned by the publicly<br />
traded YUM! Brands, the parent company of KFC, Pizza Hut, Taco Bell and A&W Restaurants. YUM! Brands is expanding<br />
Long John Silver's through the development of multibranded locations of the restaurant and its other concepts. In 2006, YUM!<br />
announced that most new Long John Silver's locations will be multi-branded with its flagship concepts KFC, Pizza Hut and<br />
Taco Bell. Long John Silver’s has upgraded its kids' meals and premiums in an effort to attract more families with young<br />
children.<br />
<strong>Menu</strong> Positioning |<br />
Long John Silver's quick-service menu features a variety of batter-dipped seafood, sandwiches, baked chicken and fish, sides,<br />
desserts and beverages. Signature items include batter-dipped fish, shrimp, clams and chicken. Sandwiches include the Fish<br />
Sandwich, Ultimate Fish Sandwich and Chicken Sandwich. Sides include fries, hushpuppies, crab cakes, coleslaw, corn<br />
cobbettes, cheese sticks, rice, and clam chowder. The newest items include a line of flatbread sandwiches and wraps,<br />
available in classic, South of the Border Caesar, Cool Ranch and Blazin’ Cajun. Family meals, variety platters, value baskets<br />
and a kids’ menu are also offered. <strong>Menu</strong> prices range from 99¢-$8.99 and checks average $4.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
389
Promotion Plans |<br />
Long John Silver’s debuted a new ad campaign targeting Hispanic customers. It includes TV and radio spots in the<br />
Southwestern Spanish-language U.S. One of the TV ads, titled “Boring Lunch,” highlights the chain’s fresh-cut Alaskan<br />
flounder filet while parodying the processed shapes of hamburgers, pizzas and square fish. The tagline of the ad is “Pesca<br />
algo major,” which translates to “Catch something better.” (Nation’s Restaurant News Online 3/26/07)<br />
Long John Silver’s hired Northlich as its agency of record, replacing Omnicom Group’s Element 79. Northlich will also handle<br />
public relations for A&W Restaurants. (NRN Daily NewsFax 8/1/07)<br />
<strong>Menu</strong> Development |<br />
Long John Silver’s has brought back Buttered Lobster Bites for the upcoming holiday season. The bite-sized pieces of<br />
langostino (a relative of lobster) are cooked in a butter breading and served in a portable Snack Box for diners on the go. The<br />
item is priced at $2.99. (Company Website)<br />
Long John Silver’s debuted Alaskan Flounder to its menu. The item is priced at $4.99 for a two-piece meal. (Company<br />
Release)<br />
Long John Silver’s rolled out the Breakaway Basket featuring battered chicken planks or crab cakes filled with lobster and<br />
paired with hushpuppies and fries. The item is priced at $2.99. (Company Website)<br />
Yum! Brands is expanding Taco Bell’s tomato deal with a Florida farmworker group to cover all of its restaurant chains,<br />
including Pizza Hut, Long John Silver’s and A&W. Yum! Brands previously agreed to pay a penny-a-pound surcharge for<br />
tomatoes used by Taco Bell after a pressure campaign from the Coalition of Immokalee Workers. Yum! says it is expanding<br />
the surcharge agreement with the hope that other restaurants and supermarkets will follow its example. (AFX.com 5/19/07;<br />
NRN Daily NewsFax 5/22/07)<br />
Long John Silver’s is touting its Monster Shrimp as the largest shrimp it has served. The shrimp are hand-breaded and cooked<br />
to golden brown. (Company Website)<br />
Long John Silver’s has brought back Buttered Lobster Bites for the holiday season. The bite-sized pieces of langostino lobster<br />
are cooked in a butter breading. A portable snack box of the Bites sells for $2.99. A combo is also available for $4.99 and a<br />
platter costs $6.99. (Company Website 11/12/07)<br />
Personnel |<br />
Steve Provost, Chief Marketing Officer<br />
Mike Tattersfield, COO/President<br />
David C. Novak, CEO<br />
Rick Carucci, CFO<br />
Leah Evans, Chief Food Innovation Officer<br />
News & Other |<br />
Long John Silver’s is being accused by the Maine Lobster Promotion Council of deceptively promoting its Buttered Lobster<br />
Bites. The council alleges that Long John Silver’s and other restaurant chains are injuring the state’s $290 million lobster<br />
industry by using the term to market products that are prepared from langostino, a pelagic crab. Long John Silver’s owner<br />
Yum! Brands Inc. says that it has complied with the USDA’s guidelines for marketing seafood. (The Courier-Journal 12/20/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
390
LongHorn Steakhouse<br />
Headquarters<br />
5900 Lake Ellenor Dr., Orlando, Florida 32809 USA<br />
Tel: (407)245-4000 Fax: (407)245-5389<br />
www.longhornsteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 774,000 673,600 584,252<br />
Company-owned ($000) 762,000 666,100 578,252<br />
Franchised ($000) 12,000 7,500 6,000<br />
U.S. Number of Units 270 247 213<br />
Company-owned 266 243 210<br />
Franchised 4 4 3<br />
International Sales ($000) 13,975 11,000 6,000<br />
International Units 4 4 3<br />
Average Sales/Unit ($000) 3,469 2,958 2,886<br />
Concept Positioning |<br />
LongHorn Steakhouse is a full-service casual-dining steak concept that serves lunch and dinner. LongHorn specializes in<br />
freshly cut choice beef that is cooked on a flat top griddle to sear in the natural juices and flavor. Darden Restaurants, Inc. is<br />
the parent company of LongHorn.<br />
Units are either freestanding or located in shopping centers. They average 5,100 sq. ft. and seat 198. Restaurants are<br />
decorated with Old West memorabilia to recreate the atmosphere of a Western-style steakhouse. A newer prototype has an<br />
expanded kitchen design to accommodate equipment needed to broaden its menu. The chain is renovating older units, making<br />
both interior and exterior upgrades.<br />
The first Longhorn Steakhouse opened in 1981. George McKerrow, Jr., a partner in the deal, lost his original partner's financial<br />
support midway through construction, so his father, George McKerrow, Sr., took over the investment and incorporated the<br />
business in December 1982. In 1997, the corporate name was changed to RARE Hospitality International, Inc. to better reflect<br />
the company’s diversity of concepts. RARE Hospitality owns and franchises more than 300 restaurants, including Bugaboo<br />
Creek Steakhouse and The Capital Grille. The company has not disclosed future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
LongHorn Steakhouse's menu features appetizers, soups, chicken, steaks, seafood, ribs, chops, sandwiches, combos, sides,<br />
desserts and beverages for lunch and dinner. Signature items include the 7- and 9-oz. beef filets, Portabella Chicken, Wild<br />
West Shrimp and LongHorn Salmon Steak. Steaks are served topped with a lemon butter sauce. The company ages its beef<br />
in a special proprietary process. Sides, such as sautéed mushrooms, grilled onions, half rack of ribs and skewer of shrimp can<br />
be added to entrées for an additional price. Other sides include brandied cinnamon apples, sweet potatoes with cinnamon and<br />
butter, sliced tomatoes, jalapeño coleslaw and french fries. Restaurants provide full bar service. A kids’ menu is also available.<br />
<strong>Menu</strong> prices range from $2.79–$20.49 and checks average $15.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
391
Expansion Plans |<br />
LongHorn Steakhouse opened a new restaurant in Cranberry, PA, on February 5. The Cranberry location is the company’s<br />
third in the Pittsburgh area. (Company Release 2/1/07)<br />
<strong>Menu</strong> Development |<br />
LongHorn Steakhouse debuted two new margaritas, The Perfect Margarita and 1800 Texas Tornado Margarita. The Perfect<br />
Margarita is prepared with Sauza Conmemorativo tequila, Cointreau, triple sec and Grand Marnier and orange juice. The 1800<br />
Texas Tornado Margarita features 1800 Reposado tequila and Grand Marnier. (Company Website)<br />
LongHorn Steakhouse debuted several new menu items. Offerings include: • LongHorn Shrimp & Lobster Dip—a blend of<br />
shrimp and lobster baked in a white wine-cheese sauce with sun dried tomatoes, served with tortilla chips for dipping • French<br />
Onion Soup—caramelized onions slow-simmered in a hearty sirloin beef broth with Madeira wine, topped with melted Swiss<br />
cheese and seasoned breadcrumbs • Outlaw Ribeye—18-oz. bone-in ribeye marinated in special seasoning and grilled over<br />
an open flame, served with a side item and fresh salad • Montana Strip—11-oz. USDA Choice Strip, finished with grilled<br />
portabello mushrooms, balsamic onion and herb shallot butter, with a red wine bordelaise sauce and a choice of side item and<br />
a salad • Woodlands Grilled Salmon—10-oz. salmon fillet over a bed of spinach, topped with sautéed mushrooms, sweet red<br />
pepper, peppered bacon and a white wine and lemon butter sauce with a choice of side and salad • Molten Chocolate Cake—<br />
dark chocolate cake with white chocolate topping and a fudge center, served with vanilla ice cream. (Company Website)<br />
LongHorn Steakhouse introduced three new seafood entrées. New options include Flo’s Filet & Crab Cake, with a 7-oz. Flo’s<br />
Filet and a jumbo crab cake baked in a creamy cheese sauce; Sirloin & Shrimp Scampi, an 8-oz. seasoned and grilled sirloin<br />
paired with baked shrimp in a bold white-wine garlic sauce; and Flo’s Filet & Lobster Ravioli, a 7-oz. Flo’s Filet with four Texassized<br />
ravioli in a creamy white-wine lobster sauce with melted cheese and fresh asparagus. (Company Release 4/20/07)<br />
LongHorn Steakhouse added a Blackberry Peach Margarita, with 1800 Silver Tequila, triple sec, peach purée, Marion<br />
blackberries and sweet-and-sour flavor. (Company Website)<br />
LongHorn Steakhouse introduced a new dessert, Golden Nugget Fried Cheesecake. The lightly breaded creamy cheesecake<br />
is flash-fried and served over ice cream and topped with strawberry sauce and a chocolate-raspberry swirl. (Company<br />
Website)<br />
LongHorn Steakhouse rolled out several seasonal menu favorites. These include: • Firecracker Chicken Wraps—crispy fried<br />
flour tortillas filled with spicy grilled chicken and cheese, paired with avocado-lime dipping sauce • Iceberg Wedge—wedge of<br />
iceberg lettuce finished with tomatoes, hickory-smoked bacon, bleu cheese crumbles and bleu cheese dressing • Full Rack of<br />
Baby Back Ribs—baby back ribs with special seasonings, chargrilled, then topped with BBQ sauce and paired with jalapeño<br />
coleslaw and seasoned french fries • Renegade & Ribs—8-oz. USDA Choice top sirloin seasoned with “Prairie Dust,” paired<br />
with half-rack of baby back ribs with a choice of two sides • Grilled Shrimp & Ribs—baby back ribs and grilled shrimp topped<br />
with spices and served with chipotle ranch dipping sauce, rice and a choice of side dish • Rocky Top Chicken & Ribs—grilled<br />
chicken breast covered with LongHorn BBQ sauce, topped with three cheeses, hickory-smoked bacon and diced tomatoes<br />
and paired with a half-rack of baby back ribs, jalapeño coleslaw and seasoned french fries • Mountain Top Cheesecake—New<br />
York-style cheesecake topped with strawberry sauce and whipped cream. (Company Website)<br />
LongHorn Steakhouse introduced its Eye of Prime Rib, featuring thick-sliced, slow-roasted prime rib, served either au jus with<br />
horseradish and sautéed red-wine Bordelaise mushrooms or char-grilled in a spicy Western style. The dish is available after 4<br />
p.m. (Company Website 9/20/07)<br />
Personnel |<br />
Clarence Otis, Jr., CEO<br />
Brad Richmond, CFO<br />
Andrew H. Madsen, COO<br />
Harry Day, V.P. of Marketing<br />
Barry B. Moullet, S.V.P. of Supply Chain and Development<br />
News & Other |<br />
Longhorn Steakhouse has added Cookie Dough Cheesecake to its dessert menu. The item is creamy cheesecake marbled<br />
with chunks of chocolate chip cookie dough in a chocolate crumb crust and topped with whipped cream and freshly baked<br />
chocolate chip cookie. (Company Website)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
392
Luby's<br />
Headquarters<br />
13111 Northwest Frwy Suite 600, Houston, Texas 77040 USA<br />
Tel: (713)329-6800 Fax: (713)329-6809<br />
www.lubys.com<br />
Ownership: Public<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 311,000 316,000 312,000<br />
Company-owned ($000) 311,000 316,000 312,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 128 131 136<br />
Company-owned 128 131 136<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,400 2,360 2,250<br />
Concept Positioning |<br />
Luby's is a limited-service cafeteria with a varied menu. The chain is publicly owned by Luby’s Cafeterias Inc. and operates<br />
128 units in the U.S., all of which are company-owned.<br />
Most units are convenient to shopping and business developments as well as residential areas. Luby's units average 9,000–<br />
11,000 sq. ft. and seat an average of 300 persons. A smaller prototype of 6,000–8,000 sq. ft., with seating for 170–214 guests,<br />
apparently will be used for future locations. Food is served buffet-style, with floor attendants available to help with trays and to<br />
bring free beverage refills to the table.<br />
Luby’s was founded by Robert M. Luby in 1947 in San Antonio, TX. In 1973, Cafeterias Inc., Luby’s parent, went public. In<br />
1996, it completed the acquisition of 22 Wyatt Cafeteria units from Triangle FoodService Corp. In 1999, the company changed<br />
its name from Cafeterias Inc. to Luby’s Cafeterias, Inc. to honor founder Robert Luby’s legacy, vision and determination. (Two<br />
other cafeterias operating in Texas use the name Luby's, but are unaffiliated with the company.) Currently, there are no major<br />
expansion plans for the chain.<br />
<strong>Menu</strong> Positioning |<br />
The menu at Luby's features lunch and dinner entrées, combos, salads, desserts and beverages. Entrées include baked<br />
whitefish, blackened tilapia, catfish and fries, fried chicken, roasted chicken, turkey and dressing, bacon and cheese steak,<br />
chopped steak, roast beef, carved ham, liver and onions, meatloaf, enchiladas and Italian spaghetti. Sides include macaroni<br />
and cheese, mashed potatoes, corn, fried okra, spinach, green beans, broccoli and cabbage. Salads include Shrimp Caesar,<br />
Chicken Caesar and Beef Fajita. Whole pies and cakes are available for purchase and include apple, pumpkin and pecan<br />
pies, strawberry cheesecake and German chocolate cake. Kids’ menu and takeout menu are available. <strong>Menu</strong> prices range<br />
from $4.79–$9.49. Checks average $8.<br />
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393
Expansion Plans |<br />
Luby’s Inc. entered into a multi-year agreement with Baylor College of Medicine to provide foodservice for its Texas Medical<br />
Center campus in Houston. The first new kitchen and dining facility opened on August 13. (Company Release 8/20/07)<br />
Luby’s has announced a five-year growth plan to develop 45–50 new units by 2012. A new prototype is being developed for its<br />
upcoming expansion. The cafeteria chain also reported signing a five-year credit agreement that provides a $50 million<br />
revolving line of credit, which the company has the option of increasing to as much as $100 million. (PR Newswire Online<br />
7/19/07)<br />
<strong>Menu</strong> Development |<br />
Luby’s has added new entrées to its menu. These include Butter Crusted Tilapia; French Onion Pork; Mushroom Chicken<br />
Madeira, chicken breast pan-grilled with Parmesan cheese and fresh herbs, topped with melted cheese, roasted mushrooms<br />
and a Madeira wine sauce; and Blackened Catfish Tostada, featuring a catfish fillet blackened in Cajun spices, served over<br />
Baja slaw on a crisp tostada shell and topped with a cheese sauce. (Company Website)<br />
Personnel |<br />
Trey Pfeiffer, Purchasing Director<br />
Laurie Shults, S.V.P. of Marketing<br />
William R. Bessette, V.P. of Culinary Development<br />
Christopher Pappas, CEO<br />
Ernest Pekmezaris, CFO<br />
Harris J. Pappas, COO<br />
Luby’s Inc. named Scott Gray chief financial officer, effective April 20. Previously, Gray served as vice president of finance for<br />
the company. (Company Release 1/24/07)<br />
News & Other |<br />
Luby’s Inc. is releasing a cookbook to celebrate its 60th anniversary. The cookbook features 120 of the restaurant’s most<br />
requested recipes and is complete with more than 50 full-color photos. It will be available for $24.95 in all Luby’s restaurants.<br />
(Bizjournals.com 11/8/06)<br />
Luby’s reported for the first quarter ended November 22 net earnings decreased 13.6% to $1.9 million from $2.2 million for the<br />
same period last year. Revenues increased 1.5% to $73.7 million. Same-store sales rose 1.7%. (Company Release 12/19/06)<br />
Luby’s Inc. reported for the first quarter net earnings fell 13.9% to $1.9 million. Revenues rose 1.5% to $73.7 million. Samestore<br />
sales increased 1.7%. (NRN Daily NewsFax 12/27/06)<br />
Luby’s reported for the second quarter same-store sales fell 3.6%. (Company Release 3/1/07)<br />
Luby’s Inc. reported for the second quarter ended February 14, net earnings decreased 42.4% to $1.9 million from $3.3 million<br />
for the same period last year. Revenues fell 3.9% to $72.1 million from $75 million. Same-store sales declined 3.6%.<br />
(Company Release 3/20/07)<br />
Luby’s Inc. will explore a sale of the company or other strategic maneuvers to increase stock value. The company announced<br />
its strategic moves after it lined up $100 million in credit. (NRN Daily NewsFax 7/31/07)<br />
Luby’s Inc. opened its new prototype restaurant in Cypress, TX, on August 21. The prototype features an upscale design and<br />
open floor plan with an open kitchen, oversized windows, granite surfaces and cherry wood walls. The unit is the first new<br />
Luby’s location in seven years. (Company Release 8/21/07)<br />
Luby’s Inc. reported for the fourth quarter ended August 29 net earnings declined to $3.3 million from $7.6 million for the same<br />
period last year. Revenues fell 0.8% to $98.3 million from $99.1 million. Same-store sales declined 2%. For the year, net<br />
earnings declined 44.9% to $10.9 million from $19.6 million. Revenues fell 1.3% to $320.4 million from $324.6 million. Samestore<br />
sales declined 1.5%. (Company Release 10/18/07)<br />
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394
Luby’s largest independent shareholder, Ramius Capital Group LLC, wants Luby’s to form a more independent board and<br />
seek strategic alternatives, possibly including the sale of the company. The shareholder nominated four candidates for Luby’s<br />
board of directors. Ramius Capital holds 7.1% of Luby’s outstanding stock. (NRN Daily NewsFax 10/18/07)<br />
Luby’s has urged its shareholders to support management and the current board after an independent shareholder nominated<br />
four candidates to Luby’s 10-seat board. In July, Ramius Capital Group LLC, which holds 7.1% of Luby’s outstanding stock,<br />
said it was seeking a more independent board, citing conflicts of interest among some board members. Luby’s CEO Gasper<br />
Mir III, in a letter to shareholders, insists that the current board is aligned with shareholder interests. The company’s next<br />
shareholder meeting is scheduled for January 15. (Nation’s Restaurant News 10/30/07)<br />
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published.<br />
395
Maggiano's<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972)980-9917 Fax: (972)770-9593<br />
www.maggianos.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 357,000 310,948 274,009<br />
Company-owned ($000) 357,000 310,948 274,009<br />
Franchised ($000) - - -<br />
U.S. Number of Units 39 37 32<br />
Company-owned 39 37 32<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 9,400 9,000 9,000<br />
Concept Positioning |<br />
Maggiano’s is a chain of full-service casual-dining Italian restaurants that specialize in generous family-style meals. Portions of<br />
large authentic Italian dishes are served on platters instead of plates. Brinker International owns and operates Maggiano’s.<br />
Units are located in downtown areas and are primarily freestanding. Maggiano’s restaurants range from 14,000–18,000 sq. ft.<br />
with seating for 500–725 customers. Themed as a pre-war New York Italian dinnerhouse, the décor features white linens atop<br />
red-checked tablecloths, dark woods and family photographs hung on walls. Most units have spacious banquet facilities and<br />
offer takeout or catering services.<br />
In 1995, Brinker International acquired Maggiano’s from Lettuce Entertain You Enterprises (LEYE) in a stock deal that included<br />
the acquisition of LEYE’s former Corner Bakery concept. Though the company plans to expand the Maggiano’s chain, targeted<br />
markets have not been specified.<br />
<strong>Menu</strong> Positioning |<br />
Maggiano's hearty Italian-American menu features appetizers, soups and salads, potatoes, vegetables, pasta, sandwiches,<br />
house specialties, chicken, steak, veal, seafood, desserts and beverages. Extensive selections of Italian specialties include<br />
spaghetti marinara, eggplant Parmesan, lasagna, veal scaloppini and mostaccioli. Signature menu items include Barb’s<br />
Spinach & Artichoke al Forno, Homemade Gnocchi with Tomato Vodka Sauce and Chicken Parmesan. Sides include crispy<br />
onion strings, spinach, garlic mashed potatoes and asparagus. Guests are also provided a choice of half-sized portions or<br />
family-size meals. All units offer full bar service. A kids’ menu is provided. <strong>Menu</strong> prices range from $7.95–$29.95 for entrées<br />
and $1.95–$11.95 for soups, salads and appetizers. Checks average $29.<br />
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396
Promotion Plans |<br />
Maggiano’s Little Italy partnered with the Make-A-Wish Foundation to make dreams come true for terminally ill children. Chefs<br />
at Maggiano’s have put together a special menu that features Goat Cheese and Olive Bruschetta, Shrimp and Scallops with<br />
Orzo, Herb Crusted Rack of Lamb and fresh Berry Tiramisu. For each of these items ordered, Maggiano’s will donate $1 to the<br />
foundation. Customers can also make a donation through the brand’s “Become a Star” program. For those who donate, the<br />
restaurant displays star cut outs with customers’ names on them. Make-A-Wish Gift Cards are also on sale, with $1 of each<br />
purchase going to the foundation. The programs are running from May 30 to June 27. (Company Release 5/30/07)<br />
<strong>Menu</strong> Development |<br />
Maggiano’s Little Italy introduced its new menu on February 12. The menu includes items with flavors inspired by Little Italy<br />
neighborhoods across the country such as Chicago’s Taylor Street Baked Ziti and Sausage, Boston’s North End Lobster<br />
Ravioli and New York’s Little Italy Braised Beef Cannelloni. (Company Release 2/12/07)<br />
Maggiano’s Little Italy debuted Little Italy Favorites, a new menu featuring dishes from Italian neighborhoods of various U.S.<br />
cities. Selections include Boston’s North End Lobster Ravioli, basil-and-saffron filled pasta topped with fresh lobster meat in a<br />
light cream sauce; New York’s Little Italy Braised Beef Cannelloni, pasta filled with braised beef, Asiago and Parmesan<br />
cheeses; Chicago’s Taylor Street Baked Ziti and Sausage, Italian sausage, pomodoro sauce and ziti finished with a layer of<br />
melted provolone and Parmesan cheeses; and Philadelphia’s South Philly Chicken Cacciatore, slow-cooked chicken covered<br />
with a red-wine tomato gravy with mushrooms, roasted peppers and onions, served over pappardelle pasta. (Nation’s<br />
Restaurant News Online 2/01/07; Company Website)<br />
Maggiano’s Little Italy created new fall menu items. Entrée selections include Butternut Squash Ravioli, Stuffed Pork Braciole,<br />
Asiago Crusted Shrimp and Filet Pizzaiola. Spumoni Tartufo has also been added to the dessert menu. (Company Website)<br />
International Activities |<br />
Brinker International Inc. has entered into a joint venture with Mexico City-based franchisee CMR SAB de SV to open 50<br />
restaurants in Mexico over the next four years. Under the agreement, Brinker and CMR will jointly contribute to a new<br />
company, Las Nuevas Delicias Gastronómicas. The partners plan to open more Chili’s Bar and Grill units and introduce the<br />
Maggiano’s Little Italy brand in Mexico. Brinker already has 49 Chili’s units in Mexico, 24 of which CMR operates. The new<br />
company expects five stores to open in 2007, with another eight slated for 2008. (Restaurantnewsresource.com 11/12/07,<br />
Dallasnews.com 11/13/07)<br />
Personnel |<br />
William B. Davenport, V.P. of Finance<br />
Bob Fitzgerald, V.P. of Purchasing<br />
Gene Monteagudo, COO<br />
Wyman T. Roberts, President<br />
Tomas Ennis, V.P. of Marketing<br />
John J. Wyatt, V.P. of Development<br />
News & Other |<br />
Maggiano’s Little Italy reported October same-store sales were flat. (Company Release 11/8/06)<br />
Maggiano’s Little Italy reported November same-store sales fell 4%. (NRN Daily NewsFax 12/8/06)<br />
Maggiano’s Little Italy reported January same-store sales declined 2.2%. (NRN Daily NewsFax 2/8/07)<br />
Brinker International Inc. reported February same-store sales declined 5.1% at Chili’s Grill & Bar, 4.1% at Romano’s Macaroni<br />
Grill, 4.1% at Maggiano’s Little Italy and 5.5% at On The Border. (NRN Daily NewsFax 3/8/07)<br />
Brinker International Inc. reported May same-store sales fell 3% at Chili’s, 4.2% at On The Border, 2.1% at Romano’s<br />
Macaroni Grill and 1.5% at Maggiano’s. In addition, stock shares fell 70¢ to close at $32.34. (Associated Press 6/6/07)<br />
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published.<br />
397
Marie Callender's Restaurant & Bakery<br />
Headquarters<br />
6075 Poplar Ave. Suite 800, Memphis, Tennessee 38119 USA<br />
Tel: (901)766-6400 Fax: (901)766-6482<br />
www.mcpies.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 317,575 326,000 325,000<br />
Company-owned ($000) 216,342 210,000 215,000<br />
Franchised ($000) 101,233 116,000 110,000<br />
U.S. Number of Units 137 146 144<br />
Company-owned 92 92 94<br />
Franchised 45 54 50<br />
International Sales ($000) 1,321 - 1,000<br />
International Units 1 - 1<br />
Average Sales/Unit ($000) 2,300 2,250 2,262<br />
Concept Positioning |<br />
Marie Callender’s Restaurant & Bakery, a full-service, family-style operation, is owned by Perkins & Marie Callender’s, Inc.<br />
The company operates 139 Marie Callender’s restaurants in the U.S. and one in Mexico. Currently, 45 Marie Callender’s units<br />
are franchised.<br />
Most restaurants are freestanding, with an English country look. Units average 8,500 sq. ft., with seating for 175 patrons in the<br />
dining area and another 55 in the cocktail lounge. Most restaurants feature seven different dining areas with a large circular<br />
salad bar in the middle Units also offer pies, cookies, cornbread, muffins, rolls and croissants through its retail bakery area. A<br />
smaller prototype (approximately 6,500 sq. ft.) with the add-on option of full liquor service is used for expansion into smaller<br />
markets such as college campuses and mall food courts.<br />
Marie Callender’s was founded in 1964 in Orange, CA, by Don Callender. Its flagship restaurant, Marie Callender’s Restaurant<br />
& Bakery, was named after his mother and pie-maker, Marie Callender. The chain was acquired in 1996 by Ramada Inns, Inc.<br />
and sold in 1989 to Wilshire Restaurant Group, an investor organization. In 1993, Wilshire sold an 80% equity stake to<br />
Saunders & Karp for debt recapitalization. In 1999, Wilshire’s holdings, including Marie Callender's Restaurant & Bakery, were<br />
acquired by Castle Harlan Partners, a merchant banker, for some $150 million. In 2006, Perkins Restaurant & Bakery<br />
completed an acquisition of Marie Callendar's. Both Perkins and Marie Callender's units are owned and operated by Perkins &<br />
Marie Callender's Inc., a portfolio company of Castle Harlan.<br />
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published.<br />
398
<strong>Menu</strong> Positioning |<br />
Marie Callendar's menu features appetizers, soups, salads, pasta, burgers, sandwiches, steaks, seafood, combos, pot pies,<br />
lunch specials, desserts and beverages. It signature items are the 35 varieties of pies available at each location, including fruit<br />
and cream, cream cheese, pecan, pumpkin and Razzleberry. Signature entrées include Heartland Chicken Pot Pie; Artichoke<br />
& Mushroom Chicken breasts, grilled and topped with sautéed mushrooms and artichokes in a creamy Parmesan, Romano<br />
and Asiago sauce and served over rice pilaf; The Works Frisco Burger, a ½-lb. burger with American cheese, applewoodsmoked<br />
bacon, onion rings, lettuce, tomatoes, pickles and dressing on sourdough; and Chicken Tacos Jalisco, grilled chicken<br />
strips served with lettuce, aged Cheddar cheese, tomatoes, cilantro, guacamole, Cabo San Lucas sauce, Spanish rice and<br />
flour tortillas. Other favorites include Grilled Four-Cheese Quesadillas, Double Shrimp Pasta, Turkey Dinner, Fresh Salmon &<br />
Asparagus Pasta and Home-style Meatloaf. MC Steak Toppers are offered for $2 to garnish steaks; they include Ginger-<br />
Teriyaki Mushrooms, Portobello Mushroom Burgundy and Caramelized Onion & Pepper-Crusted. A low-carb menu features<br />
salads, sandwiches, burgers and seafood. Most units serve alcoholic beverages. The chain also offers Diedrich's premium<br />
roast coffee in units nationwide. A kid’s menu is available. <strong>Menu</strong> prices range from $3.99–$22.99. Checks average $18.<br />
<strong>Menu</strong> Development |<br />
Marie Callender’s Restaurant & Bakery rolled out Cranberry Apple Streusel Pie, featuring sliced apples, cranberries and<br />
ground cinnamon baked in a flaky crust and topped with the company’s streusel and sliced almonds. (Company Website)<br />
Marie Callender’s Restaurant & Bakery has brought back its Banana Cream Cheese Pie for a limited time. The item features<br />
cream cheese on a vanilla crust with layers of bananas and cream filling, topped with almond slices, caramel and whipped<br />
cream. (Company Website)<br />
Marie Callender’s Restaurant & Bakery added several new items to its Fireside Favorites menu. Offerings include: •Chicken<br />
Portobello—sautéed chicken breasts and fresh portobello mushrooms, topped with a beef- Burgundy demi-glace sauce and<br />
served with a side of seasonal vegetables and garlic mashed potatoes •Braised and Slow-Roasted Pot Roast—chunks of pot<br />
roast, slow-simmered and finished with a Cabernet beef reduction and sides of caramelized vegetables and garlic mashed<br />
potatoes •Tuscan Chicken Rustica—Applewood-smoked bacon, curly pasta and mushrooms mixed in a made-from-scratch<br />
creamy cheese sauce and finished with a grilled chicken breast, coated with grated Parmesan cheese •Spicy Chipotle Chicken<br />
Salad—romaine lettuce tossed with jalapeño Jack and Cheddar cheese and fresh pico de gallo in a spicy chipotle-honey<br />
mustard dressing, finished with crispy chicken tenderloins, corn and fresh avocado •Crispy Jumbo Shrimp with Chipotle-Berry<br />
Sauce—served over a bed of fresh coleslaw with a tangy, chipotle-berry dipping sauce •Cajun Salmon and Jumbo Shrimp—<br />
Cajun spiced salmon filet and sautéed jumbo shrimp, topped with a Cajun cream sauce, green onions and mushrooms.<br />
Company Website)<br />
Marie Callender’s introduced its Taste of Spring menu. Selections include: • Fillet of Salmon & Cajun Shrimp—salmon fi llet<br />
seasoned with lemon and pepper and topped with creamy artichoke mushroom sauce and two jumbo Cajun shrimp • Artichoke<br />
and Mushroom Chicken—two grilled chicken breasts finished with fresh sautéed mushrooms and artichokes in a creamy herb<br />
garlic sauce, served with rice pilaf • Pepper-Crusted Hand-Carved Tri-Tip—medium rare hand-carved tri-tip in a Cabernet beef<br />
reduction, paired with loaded mashed potatoes topped with cheese, crispy bacon and green onions • Steamed Fresh<br />
Vegetable Platter—steamed fresh broccoli, cauliflower, zucchini, yellow squash, baby carrots, corn and mushrooms paired<br />
with drawn butter and topped with cheese • Crunchy Barbecue Chicken Salad—chicken tenderloins served over fresh lettuce,<br />
avocado, corn, kidney beans and cheese, mixed with smoky chipotle ranch dressing and fresh pico de gallo and garnished<br />
with corn tortilla chips. (Company Website)<br />
Marie Callender’s added a Caramel Apple Cream Cheese Pie to its dessert menu. The dessert is made with cream cheese<br />
and topped with sweetened apples, cinnamon, caramel sauce and whipped cream, all in a graham-cracker crust. (Company<br />
Website)<br />
Marie Callender’s debuted a Comforts of Fall menu, including: • Chicken Portobello—sautéed chicken breasts with Portobello<br />
mushrooms, finished with a beef-burgundy demi-glaze sauce and served with a vegetable medley and garlic mashed potatoes<br />
• Fresh BBQ Glazed Salmon—served with loaded mashed potatoes and seasonal vegetables • Home-Style Beef Stroganoff—<br />
tender chunks of beef, slow-simmered with fresh mushrooms in a demi-glaze red-wine beef sauce, finished with caramelized<br />
onions and Grey Poupon Dijon, and served over fettuccine noodles with sour cream • Pepper-Crusted Hand-Carved Tri-Tip—<br />
seared medium rare and hand-carved in a Cabernet beef reduction, served with loaded mashed potatoes topped with cheese,<br />
bacon and green onions • Grilled Tri-Tip Salad—slices of pepper-crusted tri-tip over field-greens salad, tossed with apple<br />
slices, candied pecans, Gorgonzola cheese, cherry tomatoes, red onion, mandarin oranges and balsamic vinaigrette •<br />
Pumpkin Cheesecake—with real pumpkin, cinnamon and nutmeg, topped with whipped cream (Company Website)<br />
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399
Personnel |<br />
Steven G. Skoien, S.V.P. of Operations<br />
Jay Trungale, CEO<br />
James W. Stryker, CFO<br />
Sheryl Ahlbrant, CMO<br />
Armando Veliz, V.P. of Food & Development<br />
Perkins & Marie Callender’s Inc. promoted Pete Pascuzzi to Senior Vice President of Corporate Restaurant Operations,<br />
effective immediately. Previously, Pascuzzi served as Vice President of Operations for the 155 company-owned Perkins<br />
restaurants. (NRN Daily NewsFax 6/13/07)<br />
News & Other |<br />
Perkins and Marie Callender’s reported for the year a net loss of $10 million compared to a loss of $15.2 million in 2005.<br />
Revenues rose 84.8% to $594.1 million from $321.4 million 2005. Same-store sales grew 1.6% at Perkins and 0.4% at Marie<br />
Callender’s. (Company Release 3/27/07)<br />
Perkins and Marie Callender’s Inc. reported a net loss of $4.3 million for the third quarter ended October 7, compared to a net<br />
loss of $7.9 million during the year-ago period. The company attributed the improvement to decreased food costs that resulted<br />
from the merger of the two chains in mid-2006. Same-store sales for the quarter increased 0.3% for Perkins and decreased<br />
2.5% for Marie Callender’s. (NRN.com 11/19/07)<br />
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published.<br />
400
Max & Erma's<br />
Headquarters<br />
4849 Evanswood Dr., Columbus, Ohio 43229 USA<br />
Tel: (614)431-5800 Fax: (614)431-4100<br />
www.maxandermas.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 223,300 225,669 220,205<br />
Company-owned ($000) 180,300 183,705 182,959<br />
Franchised ($000) 43,000 41,964 37,246<br />
U.S. Number of Units 99 102 98<br />
Company-owned 78 79 78<br />
Franchised 21 23 20<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,281 2,344 2,376<br />
Concept Positioning |<br />
Max & Erma's are full-service, casual-dining restaurants offering a varied menu. The restaurants boast a unique family<br />
environment with all-American food and friendly service. The extensive menu of appetizers, salads, soups, burgers, chicken<br />
and steaks caters to a primary customer base of families and young professionals between the ages of 21 and 40.<br />
Restaurants are open from 11:00 a.m. to midnight for lunch and dinner. All food is prepared fresh daily at the restaurant. Max<br />
& Erma’s Restaurants Inc. is the parent company of Max & Erma’s. The company operates approximately 78% of its units; the<br />
remaining stores are franchised. Max & Erma’s has over 60 locations in 12 states; units are located primarily in the Midwest<br />
and Nevada.<br />
Units are primarily freestanding and are found in mostly suburban locations. The current prototype is approximately 5,500–<br />
6,800 sq. ft. with seating for 175–210 customers. Interior décor includes a combination of light and dark brick, creating a cozy<br />
atmosphere accented by antique artifacts and local paraphernalia, ranging in style from local sports team gear to murals. The<br />
full service restaurants are open for lunch and dinner.<br />
Barry Zachs and Todd Barnum bought the original Max & Erma's in Columbus, OH, in 1972 and developed the concept into a<br />
chain. Max & Erma's Restaurants, Inc., was incorporated in 1982. The company's management arm operates under the trade<br />
name Investors Spectrum, Inc. and receives a management fee based on a percentage of each restaurant's gross revenues.<br />
In 2005, Max & Erma's announced an aggressive long-term plan for growth. Over the next 10 years, the company will launch<br />
300 franchised stores in the western U.S.<br />
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401
<strong>Menu</strong> Positioning |<br />
Max & Erma's is open for lunch and dinner. The extensive and varied menu features appetizers, soups and combos, entrées,<br />
steak and ribs, burgers, sandwiches, sides, desserts and beverages. Signature items include Max’s Monstrous Combo, an<br />
appetizer featuring stuffed skins, chicken fingers and cheese skewers; Third Street Salad, a garden salad with almonds, bleu<br />
cheese, tomatoes, red onions and grilled chicken; spicy Tortilla Soup; the Garbage Burger which is topped with bacon, four<br />
cheeses, onions, mushrooms, guacamole and marinara; a Specialty Grilled Chicken Sandwich; and Gourmet Hand-Breaded<br />
Shrimp. Desserts range from chocolate cake and banana cream pie to chocolate chip cookies and a build-your-own-sundae<br />
bar. Full liquor service is available at all units. A kids' menu is offered along with a carryout menu. In addition, healthy menu<br />
items are designated “no guilt” items. <strong>Menu</strong> prices range from $3.99–$19.79. Checks average $21.50 for dinner.<br />
Expansion Plans |<br />
Max & Erma’s plans to open five locations in the metro Birmingham, AL, area. The units will be of the chain’s new design:<br />
6,000 sq. ft. with a two-story entry tower, fireplaces and a patio. The units will be franchises. (Al.com 8/28/07)<br />
Promotion Plans |<br />
Max & Erma’s gift cards are being sold in Giant Eagle supermarkets. The cards will be sold in denominations of $25 and $50,<br />
which will be activated by the cashier. (Company Release 12/4/06)<br />
Max & Erma’s offered $5 off any regularly priced item September 1–3. Participants were required to show a copy of an email<br />
sent from the restaurant with the coupon attached. (Company Website 8/31/07)<br />
<strong>Menu</strong> Development |<br />
Max & Erma’s rolled out its newest menu, the “3 Degrees of Temptation” menu, on December 11. Customers can choose a<br />
three-course meal for $13.99. Customers can also choose a pricier entrée for $17.99. (NRN Daily NewsFax 12/7/06)<br />
Max & Erma’s rolled out six new tropical menu options for a limited time. New choices are: • Blue Hawaiian—blue Curaçao,<br />
Bacardi, margarita mix and pineapple juice • Jerk Chicken Wings—crisp, marinated jerk wings, coated in jerk BBQ sauce and<br />
served with jerk BBQ dipping sauce • Tropical Stacked Salad—soy-pineapple chicken tossed with ripe pineapple, baby<br />
greens, fresh vegetables, toasted coconut and honey-lime-mango vinaigrette, finished with a wonton crisp and Dijon<br />
horseradish sauce • Tropical Salmon—grilled Atlantic salmon marinated in sesame and soy sauce, with sweet-and-sour glaze,<br />
served over herb rice with fresh steamed vegetables • Jerk Pork Chops—boneless chops, marinated in jerk seasoning and<br />
topped with fresh-grilled jalapeño, with a side of fresh steamed vegetables and a sweet-potato banana mash • White<br />
Chocolate Macadamia Nut Cookies—a half-dozen warm cookies(Company Website; Company Release 3/05/07)<br />
Max & Erma’s introduced a new limited-time summer menu called the Passport to International Adventure. Items include<br />
Calamari, Chicken Tikka Salad, Paella, Lemon Chicken Provencale, Mojitos, Peach Iced Tea and Double Doughnut Delight.<br />
The new items are from six different countries. In addition to the menu, the company will launch its Get Away Giveaway<br />
contest. The contest features six $6,000 American Express gift cards as grand prizes. Any customer who orders a new menu<br />
item will have the opportunity to participate in the contest. (Company Release 6/19/07)<br />
Max & Erma’s developed a new menu and tagline, “A Better Place to Eat.” The restaurant aimed to emphasize freshness and<br />
quality with the tagline and menu. The menu is circular and contains new descriptions and food photography. Square-shaped<br />
seasonal menus will be inserted into the core menu. (NRN Daily NewsFax 7/3/07)<br />
Max & Erma’s debuted two beverages as part of its new international menu. The drinks include U.S.-style Peach Tea, fresh<br />
brewed iced tea sweetened with peach syrup and finished with a slice of peach, and Cuban-style Mojitos, with Bacardi rum,<br />
mojito syrup, fresh mint leaves, lime and club soda. Mojitos are available in Key West Mint, Desert Pear and Sour Green Apple<br />
flavors. (Company Website)<br />
Max & Erma’s debuted several new international offerings. Selections are Calamari (Italy), breaded and lightly fried, then<br />
sautéed in olive oil with garlic, spicy red pepper flakes and pepperoncini rings and topped with grated Parmesan cheese;<br />
Chicken Tikka Salad (India), sliced chicken marinated in Indian spices and paired with couscous and baby greens topped with<br />
lemon vinaigrette and kalamata olives; Paella (Spain), saffron rice with sautéed chicken, shrimp, chorizo, fresh asparagus,<br />
Roma tomatoes and a touch of spice; Lemon Chicken Provençale (France), thinly sliced chicken sautéed in olive oil and lemon<br />
garlic sauce and tossed with asparagus, mushrooms and tomatoes, with capellini pasta and crispy capers; and Double<br />
Doughnut Delight (Denmark), jelly doughnut cheesecake with a “liquid lemon doughnut” on the side. (Company Website)<br />
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402
Max & Erma’s launched a steakhouse-style menu on October 15. The menu features New York Strip, Filet Mignon and Sirloin<br />
steaks, a Pittsburgh-style steak salad, and a Philly steak sandwich. The menu allows customers to choose from béarnaise,<br />
wild mushroom, bleu cheese or Dijon butter sauces. The steak menu is available for a limited time. (Company Release<br />
10/15/07)<br />
Franchise Activity |<br />
Max & Erma’s plans to open franchise units in the Orlando and Daytona Beach, FL, markets. Most of the current 77 companyowned<br />
and 23 franchised restaurants are in the Midwest, with Columbus, OH, serving as the restaurant’s base. The Florida<br />
restaurants will have new designs, including a two-story entry tower, slate floors, hand-blown glass fixtures, patios and interior<br />
and exterior fireplaces. (OrlandoSentinal.com 6/4/07)<br />
Max & Erma’s Restaurants Inc. is looking for franchisees in Florida for the chain’s 15 to 30 restaurants a year that it plans to<br />
develop there over the next five years. The units will be built in Orlando, Tampa, Jacksonville and Tallahassee. The company<br />
plans to secure franchisees by the end of 2007 so it can start construction in early 2008. (7/27/07)<br />
Personnel |<br />
Bob Davis, Executive Chef<br />
Gail Venrick, Purchasing Director<br />
Robert Lindeman, CEO<br />
William Neigsch, CFO<br />
James Howenstein, COO<br />
Erin Recker, V.P. of Marketing<br />
Max & Erma’s hired Michael Nahkunst as Chief Operating Officer. Nahkunst has served as a restaurant and franchise growth<br />
expert for Chili’s, Cheesecake Factory and BJ’s Restaurants. (Company Release 9/10/07)<br />
Max & Erma’s Co-founder and Chief Executive Officer Todd Barnum relinquished his position to Robert Lindeman, the chain’s<br />
current president. (Nation’s Restaurant News 10/9/07)<br />
News & Other |<br />
Max & Erma’s Restaurants Inc. reported for the fourth quarter a net loss of $57.9 million from a loss of $131.5 million for the<br />
same period last year. Revenues declined 3.4% to $39.2 million from $40.6 million. (Company Release 12/14/06)<br />
Max & Erma’s has updated its design in an effort to attract new customers. The company debuted a new prototype last year<br />
that retains some of its signature features, such as an ice cream sundae bar, and added new elements, such as a fireplace.<br />
Max & Erma’s is also looking to roll out new menu items to go along with its burgers and other specialties. There are currently<br />
100 Max & Erma’s restaurants in operation. (Columbus Dispatch 1/21/07)<br />
Max & Erma’s Restaurants Inc. reported for the first quarter ended February 18, net earnings increased to $7.6 million from a<br />
loss of $3.2 million for the same period last year. Revenues declined 3.6% to $55.5 million from $57.6 million. Same-store<br />
sales fell 3.7%. (Company Release 3/20/07)<br />
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published.<br />
403
Mazzio's Italian Eatery<br />
Headquarters<br />
4441 S. 72 East Ave., Tulsa, Oklahoma 74145 USA<br />
Tel: (918)663-8880 Fax: (918)641-1236<br />
www.mazzios.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 147,000 145,749 142,044<br />
Company-owned ($000) 66,000 65,374 63,807<br />
Franchised ($000) 81,000 80,375 78,237<br />
U.S. Number of Units 175 174 182<br />
Company-owned 61 60 64<br />
Franchised 114 114 118<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 890 889 780<br />
Concept Positioning |<br />
Mazzio's Corp. operates Mazzio's Italian Eatery, originally called Mazzio's Pizza. The concept targets several different<br />
segments of the market by offering the convenience of dine-in, carryout, drive-thru windows and full-menu delivery services.<br />
Mazzio's draws a wide base of customers and describes its customer demographic as ranging from 15–50 years old. The<br />
company also operates Zio’s Italian Kitchen, a full-service casual-dining operation.<br />
Mazzio's restaurants are freestanding or inline with other stores. The average size is 3,000 sq. ft., with seating for 100 patrons.<br />
Décor is upscale art deco, highlighted by neon signs and plants. As part of its operational strategy, the company has<br />
developed plans to reduce the entry cost of this concept as well as co-brand it with other fast-food merchandisers.<br />
Ken Selby, a former physical science teacher, founded the company under the name Ken's Pizza in Tulsa, OK, in 1961. Five<br />
years later, he sold his first franchise. The Mazzio name first appeared in 1979. Its company-owned Zio’s concept debuted in<br />
Tulsa in 1994. The company plans to continue expansion, though specific details have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
The menu at Mazzio's Italian Eatery features pizzas, appetizers, salads, Calzone Rings, pasta, sandwiches and beverages. Its<br />
signature item is pizza—available in original, thin or deep pan crust. Specialty pizzas include the Chicken Club—chicken,<br />
bacon, tomatoes and four cheeses; Lucky 7—pepperoni, green peppers, onions, mushrooms, tomatoes, black olives and four<br />
cheeses; Greek—garlic basil oil, breaded chicken, black olives, pepperoncinis, tomatoes, mozzarella and feta cheese; and the<br />
California Alfredo—alfredo sauce, chicken, bacon, mushrooms and tomatoes. There are 20 different pizza toppings available.<br />
Calzone Rings are stuffed, baked rings served with dipping sauce, and are available in Pepperoni & Four Cheese, Four-by-<br />
Four (four meats and four cheeses) and Ham, Bacon & Cheddar. All pastas come with a choice of penne, fettuccine or<br />
spaghetti noodles and range from Chicken Parmesan and Lasagna to Greek Pasta and Chicken Spinach Artichoke Pasta.<br />
Salad bar includes a variety of vegetables, lettuce, toppings and dressings. Kids' and takeout menus are available. <strong>Menu</strong><br />
prices range from $2.15–$15. Checks average $14.<br />
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published.<br />
404
<strong>Menu</strong> Development |<br />
Mazzio’s Pizza introduced its new Solo Meals. The meals include Choose Your Favorite Small Pizza, Three Delicious Penne<br />
and Cheese Bake Options and Dippin’ Zone Choices. The meals are smaller in size than standard portions and are priced at<br />
$6.99. (Company Website 3/27/07)<br />
Mazzio’s added Flatbread Pizzas to its menu for a limited time. Flavors include BBQ Chicken, grilled chicken, sweet barbecue<br />
sauce, diced red onions and fresh cilantro topped with mozzarella; Spicy Chicken Caldo, grilled chicken, spicy caldo marinara,<br />
crisp bacon, sundried tomatoes, red and green onions, topped with four cheeses; and a Create Your Own option with a choice<br />
of two toppings, zesty pizza sauce and mozzarella. All Flatbreads are $8.99. (Company Website)<br />
Personnel |<br />
Steve Davis, S.V.P. of Operations<br />
Greg Lippert, CEO<br />
Sonja Wilson, CFO<br />
Archie Dixon, V.P. of Purchasing<br />
Dave Poth, V.P. of Research & Development<br />
Dave Poth, V.P. of Marketing<br />
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published.<br />
405
McAlister's Deli<br />
Headquarters<br />
731 S. Pear Orchard Rd. Suite 51, Ridgeland, Mississippi 39157 USA<br />
Tel: (601)952-1100 Fax: (601)957-0964<br />
www.mcalistersdeli.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 255,081 207,146 161,561<br />
Company-owned ($000) 25,241 25,187 24,701<br />
Franchised ($000) 229,840 181,959 136,860<br />
U.S. Number of Units 216 181 149<br />
Company-owned 22 23 22<br />
Franchised 194 158 127<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,310 1,250 1,200<br />
Concept Positioning |<br />
McAlister’s Deli is a limited-service restaurant known for sandwiches and sweet tea. The chain is privately held by Roark<br />
Capital Group and operates 216 units in 17 Southern states under the names McAlister’s Deli, McAlister’s Gourmet Deli and<br />
McAlister’s Select. The chain franchises 194 of the units.<br />
Units range in size from 2,800-3,800 sq. ft. and seat approximately 120 patrons. Freestanding units account for 40% of the<br />
chain’s units while the majority are endcaps. The McAlister Tartan, a plaid design that is featured on the awnings and curtains,<br />
is featured throughout with black and white checkered floors, brass railing and Old Chicago brick counters is featured in all<br />
units.<br />
McAlister’s Deli was founded in 1989 in Oxford, MS, by Don Newcomb, a dentist, and his real estate partner, Debra Bryson. In<br />
1998, an investor’s group led by Mike Stack and Phil Friedman acquired it. In the first 10 years of its existence, McAlister’s had<br />
grown to a 47 unit chain. In 2005, the company announced that it had been acquired by private equity firm Roark Capital<br />
Group for an undisclosed sum. Roark also operates the Carvel and Cinnabon brands through its Focus Brands division.<br />
Currently, there are no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
McAlister's Deli is open for lunch and dinner and features made-to-order food with nothing fried. McAlister's signature menu<br />
item is the Spud Max—a fully loaded two-pound potato filled with ham, turkey, bacon, Cheddar and Swiss cheese, green<br />
onions, black olives and light sour cream. The most popular menu item is the McAlister Club—turkey, ham, Applewood<br />
smoked bacon, Cheddar and Swiss cheese, lettuce, tomatoes and the proprietary McAlister’s Honey Mustard. The 100-item<br />
menu also includes many vegetarian offerings, including meatless chili nachos. McAlister’s offers 32-oz. drinks and free refills.<br />
<strong>Menu</strong> prices range from $3.99–$7.99. Checks average $7.<br />
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published.<br />
406
<strong>Menu</strong> Development |<br />
McAlister’s Deli introduced a line of Peach Habañero sandwiches for a limited time. Varieties include Peach Habañero Club,<br />
Peach Habañero Chicken and Peach Habañero Turkey. (Company Website)<br />
McAlister’s Deli introduced a Café <strong>Menu</strong>, which allows guests to choose two items, including a sandwich on Café Roll, regular<br />
salad or cup of soup. (Company Release 1/19/07)<br />
Franchise Activity |<br />
McAlister’s Deli plans to open 50 outlets this year, including units in new markets such as Colorado, Nebraska and New<br />
Mexico. The chain opened 43 franchised stores in 2006. McAlister’s operates and franchises over 181 domestic units. (QSR<br />
Online 2/07/07)<br />
Personnel |<br />
Ian MacDonald, Director of Marketing<br />
Phillip Friedman, CEO<br />
Lewis Loeb, CFO<br />
Iris Holloway, V.P. of Purchasing<br />
Larry Keltner, V.P. of Operations<br />
Craig Forbes, V.P. of Research & Development<br />
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published.<br />
407
McCormick & Schmick's<br />
Headquarters<br />
720 SW Washington St. Suite 550, Portland, Oregon 97205 USA<br />
Tel: (503)226-3440 Fax: (503)228-5074<br />
www.mccormickandschmicks.com<br />
Ownership: Public<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 308,000 278,800 238,800<br />
Company-owned ($000) 308,000 278,800 238,800<br />
Franchised ($000) - - -<br />
U.S. Number of Units 66 59 52<br />
Company-owned 66 59 52<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,325 5,200 5,205<br />
Concept Positioning |<br />
McCormick & Schmick’s operates a chain of full-service restaurants specializing in fresh seafood. McCormick & Schmick’s<br />
Seafood Restaurants, Inc. is the parent company of McCormick & Schmick’s. McCormick & Schmick’s boasts an upscale, not<br />
uptight atmosphere. The restaurant features an extensive seafood menu, as well as premium steaks, chicken, pasta and salad<br />
entrées. McCormick and Schmick’s is operated by McCormick & Schmick Management Group, which is owned by Castle<br />
Harlan Inc.<br />
Units are primarily freestanding located in high-traffic metropolitan areas displaying designs that reflect the culture and<br />
heritage of the city in which it is located. Almost half are located in historical buildings that are part of the National Register of<br />
Historic Places. Interiors include the use of rich woods, stained glass, candles and brass. Restaurants are open for lunch and<br />
dinner. Stores range in size from approximately 6,000-14,000 sq. ft. with seating for 200-350 patrons, although the average<br />
size is 8,500 sq. ft. Some units also have 40-60 additional seats in a patio area.<br />
McCormick & Schmick’s was founded in 1972 by William P. McCormick and Douglas L. Schmick in Portland, OR. In 1997,<br />
Avado completed its acquisition of the company for some $53 million in cash and stock, but that followed with an<br />
announcement of its sale to Bruckmann, Rosser, Sherrill & Co. LLC in 2001. McCormick & Schmick went public in July 2004.<br />
In October 2006, McCormick & Schmick Management Group acquired the Boathouse restaurant concept from The Spectra<br />
Group of Great Restaurants for approximately $14.3 million. In 2004, the company launched a smaller sister concept, M&S<br />
Grill, continues to be slowly expanded in McCormick & Schmick’s existing markets. The company plans to open six new<br />
restaurants in 2007.<br />
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published.<br />
408
<strong>Menu</strong> Positioning |<br />
McCormick & Schmick’s is open for lunch and dinner. Its menu features appetizers, soups and salads, steaks, meat and<br />
poultry, seafood specialties, classic entrees, desserts and beverages. The menu features 85 freshly prepared items including<br />
more than 30 different seafood varieties. Starters to the meal include appetizers such as Coconut Shrimp, Black Mussels,<br />
Fried Calamari, Dungeness Crab & Bay Shrimp Cakes, Rock Shrimp Popcorn and Assorted Sashimi. Core seafood offerings<br />
include lobster, salmon, sturgeon, oyster and crab. Signature seafood specialties include Blue Nose Bass—griddled, cashewencrusted<br />
bass with vanilla Habañero rum butter sauce; Tilapia—oven- roasted with Cajun pecan butter; and Albacore—<br />
seared rare and served over white rice and blackberry teriyaki sauce. Five types of oysters are available and can be ordered in<br />
½- or 1 dozen-sized portions. Steak, pork chops and chicken round out the menu. Full liquor service is available. <strong>Menu</strong> prices<br />
range between $2 and $44.95. Checks average $30.<br />
Expansion Plans |<br />
McCormick & Schmick’s Seafood Restaurants Inc. opened its first Boca Raton, FL, restaurant. The unit is located in University<br />
Commons. (Company Release 11/6/06)<br />
McCormick & Schmick’s Seafood Restaurants Inc. opened its first Cincinnati location. The unit marks the company’s sixth<br />
opening in 2006. (Company Release 11/20/06)<br />
McCormick & Schmick’s Seafood Restaurants Inc. opened its newest location in Burbank, CA, on December 13. This unit is<br />
the company’s sixth and final opening of 2006 and its 11th in California. (Company Release 12/13/06)<br />
McCormick & Schmick’s Seafood Restaurants Inc. opened its first location of 2007 in Sacramento, CA, on February 20. The<br />
company expects to open 11 U.S. restaurants and six international restaurants in Canada. (Company Release 2/20/07)<br />
McCormick & Schmick opened a new unit in Schaumburg, IL, on August 6. The location marks the restaurant’s third in the<br />
greater Chicago area. (Company Release 8/6/07)<br />
McCormick & Schmick’s Seafood Restaurants Inc. opened a new unit in Oak Brook, IL, on August 20. The unit is located at<br />
the Oak Brook Promenade. (Company Release 8/20/07)<br />
McCormick & Schmick’s Seafood Restaurants plans to open 12 new restaurants in 2008. Locations will include the Chicago<br />
suburbs of Schaumburg and Oak Brook, IL, as well as Cleveland and Dayton, OH, and Austin, TX. There are currently 73<br />
McCormick & Schmick’s restaurants nationwide. (GlobeSt.com 8/8/07)<br />
Promotion Plans |<br />
McCormick & Schmick’s Seafood Restaurant is celebrating recent store openings by offering a $25 gift certificate to guests<br />
who make an online reservation. To receive the gift certificate, customers make an online reservation, print the confirmation<br />
number, print the certificate and then present the number and the certificate to their server. (Company Website 9/19/07)<br />
<strong>Menu</strong> Development |<br />
McCormick & Schmick’s is offering a new bar menu in honor of the 200th anniversary of the cocktail. The menu is broken<br />
down by time periods, such as Early Days and Golden Years (1806–1920), Prohibition and Beyond (1920–present), and<br />
Modern Cocktail Creations (2005–). Selections include the Virginia Mint Julep prepared with Woodford Reserve Bourbon<br />
($9.50); Jamaican Daisy, with Appleton VX Rum and orange curaçao ($8.50); the Blood and Sand Cocktail, with Glenlivet<br />
single-malt Scotch ($8.75); and the Moscow Mule, with Stoli vodka, fresh lime and pureed ginger ($8). (Orange County<br />
Business Journal 11/06/06 pB65)<br />
Personnel |<br />
Greg Leblanc, Director of Marketing<br />
Bill King, Executive V.P. of Culinary Development & Training<br />
Doug Schmick, CEO<br />
Emanuel Hilario, CFO<br />
David Jenkins, V.P. of Operations<br />
Karen Majerus, Director of Supply Chain<br />
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published.<br />
409
McCormick & Schmick’s Seafood Restaurants Inc. plans to appoint Doug Schmick chief executive officer, effective January<br />
2007. Presently, Schmick serves as president and chairman for the company. (Company Release 11/1/06)<br />
News & Other |<br />
McCormick & Schmick’s Seafood Restaurants Inc. reported for the third quarter ended September 30 net earnings grew<br />
32.8% to $2.7 million from $2.0 million for the same period last year. Revenues increased 11.2% to $75.6 million from $68.0<br />
million. Same-store sales rose 2.9%. (Company Release 11/1/06)<br />
McCormick & Schmick’s Seafood Restaurants Inc. has agreed to acquire The Boathouse for $14.3 million. The company plans<br />
to complete the transaction in the first quarter of fiscal 2007. (NRN Daily NewsFax 11/2/06)<br />
McCormick & Schmick’s Seafood Restaurants Inc. will purchase The Boathouse restaurant concept from The Spectra Group<br />
of Great Restaurants Inc. for about $14.3 million. The Boathouse has five waterfront restaurants in British Columbia. The<br />
acquisition will be completed in the first quarter of 2007. (Company Release 11/01/06; NRN Daily NewsFax 11/02/06)<br />
McCormick & Schmick’s Seafood Restaurants reported for the fourth quarter ended December 30 net earnings increased<br />
7.6% to $4.8 million from $4.5 million for the same period last year. Revenues grew 2.8% to $84.3 million from $82 million.<br />
Same-store sales rose 2%. (Company Release 2/14/07)<br />
The Boathouse has been acquired by Portland, OR-based McCormick & Schmick’s Seafood Restaurants Inc. for<br />
approximately $14.5 million. The Boathouse, a Toronto-based seafood chain that offers fresh seafood, premium steaks and an<br />
expansive wine list in an upscale dining room, was previously owned by the Spectra Group of Great Restaurants Inc. The<br />
Boathouse joins a portfolio that includes flagship brand McCormick & Schmick’s, M&S Grill, McCormick’s Fish House & Bar<br />
and Spenger’s Fresh Fish Grotto. McCormick & Schmick’s Seafood Restaurants plans to oversee future growth of The<br />
Boathouse in British Columbia, Canada. (Yahoo! Finance 4/2/07)<br />
McCormick & Schmick’s Seafood Restaurants Inc. reported for the first quarter ended March 31 net earnings increased 40.7%<br />
to $3.2 million from $2.3 million for the same period last year. Revenues grew 13.7% to $81.4 million from $71.6 million.<br />
Same-store sales rose 2.8%. (Company Release 5/8/07)<br />
McCormick & Schmick’s Chairman Douglas Schmick sold 5,000 shares of common stock for $28.73 apiece. The shares were<br />
sold on May 23. (Associated Press 5/29/07)<br />
McCormick & Schmick’s Seafood Restaurants reported for the second quarter ended June 30 net earnings increased 27.6% to<br />
$4.5 million from $3.5 million for the same period last year. Revenues rose 16.8% to $89.6 million from $76.8 million. Samestore<br />
sales grew 2.3%. (Company Release 8/7/07)<br />
McCormick & Schmick’s Vice President William H.P. King sold 6,667 shares of common stock on August 10. King exercised<br />
the options for $12 per share, then sold the shares for $27.10 apiece. (Associated Press 8/13/07)<br />
McCormick & Schmick’s Seafood Restaurants Inc. anticipates third-quarter revenue of about $88 million and flat same-store<br />
sales compared with year-before figures. The company has lowered its forecast by about one-third, claiming weak traffic this<br />
month. (NRN Daily NewsFax 9/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
410
McDonald's<br />
Headquarters<br />
2111 McDonald's Dr. McDonald's Plaza, Oak Brook, Illinois 60523 USA<br />
Tel: (630)623-3000 Fax: (630)623-8843<br />
www.mcdonalds.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 27,100,000 25,642,900 24,390,900<br />
Company-owned ($000) 4,410,000 4,098,300 3,828,200<br />
Franchised ($000) 22,690,000 21,544,600 20,562,700<br />
U.S. Number of Units 13,774 13,727 13,673<br />
Company-owned 2,104 2,097 2,002<br />
Franchised 11,670 11,630 11,671<br />
International Sales ($000) 29,830,000 27,287,600 25,712,600<br />
International Units 17,893 17,039 16,823<br />
Average Sales/Unit ($000) 2,100 1,985 1,800<br />
Concept Positioning |<br />
McDonald’s is the world's largest chain of fast-food restaurants, serving more than 38 million customers daily. Most locations<br />
offer drive-through, sit-down and carryout service for breakfast, lunch and dinner. A select number of outlets remain open 24<br />
hours a day. McDonald’s Corp. is the parent company of the chain. McDonald’s offers an extensive menu of snacks,<br />
sandwiches, hamburgers and drinks to appeal to a wide and varied demographic of customers. About two-thirds of its system<br />
is franchised to some 4,500 franchisees throughout the world. Some 80% of McDonald's restaurants, and more than 80% of<br />
sales, are in eight countries: Australia, Brazil, Canada, France, Germany, Japan, the U.K. and the U.S.<br />
Units are freestanding or located in shopping malls, hospitals, college campuses, airport terminals, interstate highways, office<br />
buildings, military installations, museums and in Wal-Marts throughout the U.S., Canada, Mexico and Puerto Rico. McDonald’s<br />
has a variety of different décor packages systemwide but all are tied together through the use of a single identity link: the<br />
golden arches signage. The company introduced a new décor in 2006 as well as a new Playplace design—the R Gym<br />
PlayPlace—offering climbing walls, dance games and a basketball area. Among the other new changes are flat rooftops with a<br />
golden sloping curve, replacing the chain's signature mansard roof. The company will retain its original color scheme of red<br />
and yellow, but will add new shades like olive and sage green into the mix. Less plastic will be used in the interior; increased<br />
use of brick and wood will be used to add a warmer feel to the decor. International locations may also feature different decor<br />
and color packages. For example, in February 2006, McDonald's changed the color and signage of two of its units in Tel Aviv,<br />
Israel. The changes reflect a demand for kosher colors on the chain's signage. The golden arches feature new blue<br />
background, and other signs display the word "kosher" in both Hebrew and English. Another prototype the chain offers is the<br />
Series 2000, which is half the size of its traditional units and requires a smaller land parcel yet produces nearly the same unit<br />
volume as its other designs. It also reduces both construction and site costs. In addition, McDonald's introduced a modular<br />
concept called Bistro Gourmet. Currently operating nearly 20 units in Florida, California, New Jersey, Delaware and<br />
Pennsylvania, Bistro Gourmet is an upscale fast-casual restaurant serving such items as grilled panini sandwiches, espresso<br />
and premium ice cream. McDonald's is also in the initial stages of planning to expand its menu offerings to make breakfast<br />
available all day. In order to do so, the company is exploring ways to redesign its prototype to include exhibition kitchens.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
411
McDonald's originated in San Bernardino, CA, in 1948, when Maurice and Richard McDonald reformulated the menu of their<br />
barbecue restaurant and began serving only hamburgers, fries, and shakes. An order for eight milkshake mixers attested to<br />
their success and attracted the attention of Ray Kroc, a mixer salesman. He negotiated a franchising agreement with the<br />
McDonalds in 1954 and opened his own stand in Des Plaines, IL, the following year. In 1960, Kroc bought out the McDonalds,<br />
and formed McDonald's Corp. The company went public in 1966. Other milestones include: Establishment of Hamburger U—<br />
1961; debut of Ronald McDonald—1966; and introduction of the Big Mac—1968.With over 31,000 locations worldwide in 121<br />
countries, McDonald’s will continue to grow both internationally and domestically. Its Moscow unit in Pushkin Square is one of<br />
the busiest in its system, serving an average of 40,000 customers a day. McDonald’s plans to have 200 restaurants in Russia<br />
by the end of 2007. A unit in La Paz, Bolivia, is the highest altitude unit in the world at 11,000 feet above sea level (it required<br />
modifications to many McDonald’s cooking procedures). In December 2005, McDonald's opened its first drive-thru unit in<br />
China and hopes to have 1,000 outlets there by 2008, with over half of these future locations featuring drive-thrus, in time for<br />
the 2008 Beijing Olympics.<br />
<strong>Menu</strong> Positioning |<br />
McDonald's menu features more than 40 items including hamburgers, cheeseburgers, breakfast, salads, chicken sandwiches,<br />
sides, desserts and beverages. Signature items include the Big Mac—two all- beef patties, lettuce, cheese, pickles, onions<br />
and special sauce on a sesame seed bun; and the Big N’ Tasty—¼ lb. 100% beef patty, tomato, lettuce, pickles, onions,<br />
ketchup and mayonnaise on a toasted sesame seed bun. Other sandwiches include the Filet-O-Fish, Chicken McGrill, Crispy<br />
Chicken and McChicken. Also menued are Premium Salads, which include Caesar, Bacon Ranch, the Asian Chicken Salad<br />
and the Southwest Salad—all of which are available with crispy or grilled chicken. Salad dressings include Newman’s Own, in<br />
Creamy Caesar, Creamy Southwest, Low Fat Balsamic Vinaigrette, Low-Fat Family Recipe Italian, Low-Fat Sesame Ginger<br />
and Ranch. Chicken Selects, another popular offering, are premium breast strips available in three or five piece orders.<br />
McDonald's menu developments will focus on breakfast, chicken and salad offerings. The morning daypart is very active for<br />
the chain. Breakfast offerings include the signature McMuffin—eggs and Canadian bacon on an English muffin. Other<br />
selections include pancakes, biscuit and bagel sandwiches, muffins and juices. Its McGriddles sandwich is a popular breakfast<br />
item featuring sausage, egg, bacon or cheese in between two griddle cakes with maple syrup. In addition, various meal<br />
combinations are offered as Value Meals, typically bundling a sandwich, fries and beverage. The kids' menu features Happy<br />
Meals and Mighty Kids Meals, available as a hamburger, cheeseburger or chicken McNuggets meal including small French<br />
fries, beverage and a collectible toy. Desserts include shakes, ice cream sundaes, cones, pies, cookies and the McFlurry.<br />
McDonald's newest promotion is its Dollar <strong>Menu</strong>, featuring sandwiches, fries, drinks, salads and desserts all for $1.<br />
International menus cater to local tastes; for example, the McArabia is available in the Middle East and the Ebi Filet is on the<br />
menu in Japan. Recently, McDonald's announced a gradual shift to bottled and canned beverages, beginning with a test of<br />
several bottled drinks at units in Texas. Its newest menu additions are Chicken Snack Wraps, featuring crispy or grilled<br />
chicken, for $1.29. McDonald's is currently promoting snack items like its fruit snacks and cinnamon rolls to increase sales<br />
during mid-day. <strong>Menu</strong> prices range from 99¢–$6.35. Checks average $5.32.<br />
Expansion Plans |<br />
McDonald’s Corp. will increase its pace of expansion, which was reduced four years ago so the company could focus on<br />
improving operations. Before, the company increased the number of restaurants by 0.9% to 1% annually. Now its plans to<br />
raise that annual rate to 1.2%–1.3%. McDonald’s plans to open 800 new units in 2007 and remodel 2,000 existing units,<br />
spending $1.9 billion. (Reuters 5/24/07)<br />
McDonald’s closed its Easton Town Center restaurant in Columbus, OH, claiming that the unit’s lack of a drive-thru window<br />
and a breakfast menu is the reason for the move. The unit was open for six years. (Bizjournals.com 7/5/07)<br />
McDonald’s and Subway will be opening locations in Falkville, AL, as part of the Love’s Travel Stop development project. The<br />
development will begin in the fall and will be open for business in 2008 on I-65 and Highway 55. Love’s is a family-owned<br />
cooperation with headquarters in Oklahoma City. (Hartselleenquirer.com 7/12/07)<br />
McDonald’s is closing a unit that is on the National Register of Historic Places. The unit, located in Pine Bluff, AR, is notable<br />
because it has a single arch (not two as current restaurants have.) The single arch is a design from the 1950s. Restaurant<br />
manager Tequila Jones is not sure if the arch will move to the new location. (Associated Press 8/16/07)<br />
Promotion Plans |<br />
McDonald’s has brought back its McRib sandwich for the last time. The company has re-introduced the sandwich for the<br />
McRib Farewell Tour II, a campaign featuring a website that offers music and wallpaper downloads and a chance to sign a<br />
“Save the McRib” petition. (NRN Daily NewsFax 11/3/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
412
McDonald’s made an agreement with Safeway Inc. to sell the burger chain’s prepaid shopping cards in the supermarket’s<br />
stores. Safeway will sell the Arch cards in 1,500 U.S. locations, including Dominick’s, Tom Thumb and Vons. (Company<br />
Release11/14/06)<br />
McDonald’s is targeting Catholic Hispanics with its Filet-O-Fish promotion. The company launched a multi-channel promotion,<br />
including television, radio and in-store promotion, last week, coinciding with the beginning of Lent. It features dolphin vs. man<br />
interactive games Ocean Commotion and Aquatic Tennis. (Publicatons.mediapost.com 3/1/07)<br />
McDonald’s is planning to recreate its classic “Nothin’ but Net” ad spots with basketball players LeBron James and Dwayne<br />
Wade. The chain is currently in negotiations with the National Basketball Association. The original ads pitted Michael Jordan<br />
and Larry Bird against each other in a game of “horse,” with the prize being a Big Mac and fries. In those ads, the shots<br />
became increasingly harder and more extreme. McDonald’s wants to update the ads with James and Wade to appeal to a<br />
generation of consumers who have not seen the original version. (Advertising Age 4/16/07)<br />
McDonald’s launched a promotion in Chicago featuring Cubs and White Sox baseball players to market the company’s new<br />
line of iced coffees. Beginning the first week of May, McDonald’s will offer vanilla, hazelnut and plain iced coffees at 700 of its<br />
units in and around Chicago. McDonald’s plans to advertise the drinks with ads on the public transit system, television spots,<br />
ads at concert venues and ads on cocktail napkins in Chicago bars. The chain’s Chicago drink promotion is part of a plan to<br />
turn it into a destination for drinks, not just food. McDonald’s is also testing bottled non-cola drinks and a line of cappuccinos<br />
and lattes in a few restaurants. (Online.wsj.com 5/1/2007)<br />
McDonald’s debuted a new campaign for its iced-coffee drinks in Chicago that features Chicago Cubs and White Sox players.<br />
The ads can be found on public transportation, at concert venues, on cocktail napkins in area bars and in TV commercials.<br />
The TV spots play off the rivalry between the Cubs and the Sox. The chain is selling the plain, vanilla and hazelnut iced<br />
coffees at 700 outlets in Chicago. The beverages have been sold in New York, Boston, Seattle and other cities for a few<br />
months. Other promotions have included displaying coffee mugs frozen in ice in Seattle and offers for free coffee at Boston<br />
locations. (Wall Street Journal Online 5/01/07)<br />
McDonald’s recently ran a promotion that centered on the “American Idol” TV program. The promotion featured Happy Meal<br />
and Mighty Kids Meal toys based on the show. The toys included Starry Eyed Shades sunglasses, an MP3 song player, a Star<br />
Guitar and Popstar Headset player, the Applause-O-Matic player and the Judgmental Mic, which plays four performance<br />
critiques. As part of the initiative, McDonald’s ran a contest that awarded winners the opportunity to attend the show’s season<br />
finale. (NRN Daily NewsFax 4/19/07; Chicago Sun-Times 4/19/07)<br />
McDonald’s will focus on fruit, vegetables and milk in its promotion of “Shrek the Third.” The campaign will include Happy Meal<br />
toys shaped like Shrek and promotions for salads, chicken sandwiches, sliced apples and lowfat milk. In the U.K. the chain will<br />
also feature the “Shrek” image on packaging for foods such as carrot sticks, organic milk and fruit bags. In the U.S., customers<br />
can purchase a 16-oz. drinking glass featuring one of the movie’s characters for $1.99. (Chicago Tribune Online 5/08/07;<br />
UPI.com 5/08/07)<br />
McDonald’s is launching its McDonald’s Champion Kids program as part of the chain’s tie in to the 2008 Olympic Games. The<br />
program allows 300 children from around the world to travel to Beijing, where they will watch the competitions, meet the<br />
athletes, tour cultural sites and share experiences. Olympic gold medalist Michael Phelps will serve as McDonald’s<br />
ambassador for the program. (QSRWeb.com 8/7/07; NRN Daily NewsFax 8/9/07)<br />
McDonald’s My Scene Barbie promotion is under fire. The Campaign for a Commerical-Free Childhood is demanding that<br />
McDonald’s stop the promotion, claiming that the scantily clad Barbie dolls send an unhealthy message to young girls.<br />
McDonald’s has no plans to end the promotion, which runs through October 28. (Promo.com 10/18/07)<br />
McDonald’s plans to announce the winners of its annual Monopoly game in Winner, SD. In addition, residents of Winner got a<br />
chance to win free money at the town’s McDonald’s location when they stepped inside a booth full of a whirlwind of bills. Also,<br />
McDonald’s teamed with local radio station KWYR to sponsor a McDonald’s and Monopoly trivia game. (Rapidcityjournal.com<br />
10/23/07)<br />
McDonald’s, Brach’s and Myspace are supporting DreamWorks Animation’s “Bee Movie.” McDonald’s is offering six “Bee<br />
Movie” toys in its Happy Meals. The promotion includes a “cause marketing” element, in which McDonald’s and Conservation<br />
International are encouraging children to take an eco-friendly “Bee Good to the Planet” pledge. The pledge, available at<br />
McDonald’s Happy Meal website, encourages children to protect the earth. McDonald’s is also using television spots to<br />
promote the movie, which is to be released November 2. (Promomagazine.com 10/24/07)<br />
McDonald’s awarded more than $30 million in cash and prizes during this year’s Monopoly promotion. Two people each won<br />
the top prize of $1 million this year. The in-store promotion ended October 29. An on-line version of the game, where entrants<br />
can win gift cards and downloadable games, ends November 13. (promomagazine.com 11/01/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
413
McDonald’s joined with the National Center for Family Literacy to promote National Family Literacy Day in Southern California<br />
restaurants. The November 1 event included a giveaway of 12,000 children’s books and in-store readings by local politicians<br />
and Ronald McDonald. (Restaurantnewsresource.com 11/01/07)<br />
McDonald’s will give away free McCafé beverages at 140 of its restaurants in the Kansas City, MO, area every Monday<br />
through January. The “Free Coffee Mondays” promotion features a complimentary small Vanilla Latte through November, a<br />
free Café Mocha in December and a free Caramel Cappuccino for January. (Nation’s Restaurant News 10/29/07)<br />
McDonald’s received criticism from the Campaign for a Commercial-Free Childhood (CCFC) for offering an allegedly<br />
sexualized “My Scene Barbie” Happy Meal promotion in October. CCFC, a national coalition that fights against the harmful<br />
effects of marketing to children, alleges the fast-food chain encouraged negative sexual stereotypes by offering young girls an<br />
unrealistically proportioned Barbie doll with micro miniskirts, halter top and rollerblades. In response to claims by CCFC and<br />
others that it encourages childhood obesity, McDonald’s established a Global Moms Panel to give input on McDonald’s<br />
communications and children’s well-being. (QSR Magazine Online 10/17/07)<br />
McDonald’s is hosting its second annual Voice of McDonald’s employee singing contest. Through December 10, the company<br />
will accept public voting on its website for the 35 semi-finalists who made it through the first round of the competition. The top<br />
10 vote getters will then be judged at the McDonald’s corporate convention in April. The winning singer will receive a $25,000<br />
grand prize. More than 3,600 employees from 53 countries entered the contest. (NRN Daily NewsFax 11/29/07)<br />
<strong>Menu</strong> Development |<br />
McDonald’s has rejected the soy-corn blend oil that Wendy’s is using to reduce trans-fat because it didn’t meet the company’s<br />
standards. McDonald’s European division plans to cut trans-fat content to 2% by mid-2008. (NRN Daily NewsFax 11/8/06)<br />
McDonald’s is working on using a healthier oil for its french fries, but can’t confirm a complete transition date. The company<br />
has been working on the switch for four years. The reason for the delay is because McDonald’s doesn’t want to sacrifice the<br />
taste of its fry. (Ocregister.com 11/16/06)<br />
McDonald’s is testing burgers made with Angus beef in six locations in South Pasadena, CA. The burgers, called the Angus<br />
Three Pounders, have three variations: cheeseburger, a version with lettuce and tomato and a version with Swiss cheese and<br />
mushrooms. They are priced from $3.39 to $3.99. (NRN Daily NewsFax 12/7/06)<br />
McDonald’s is testing a breakfast dollar menu. The company says that the breakfast dollar menu isn’t aimed directly at its<br />
competition. (Forbes.com 12/19/06)<br />
McDonald’s rolled out a Honey Mustard Snack Wrap variety to its chicken snack wrap line. The item features iceberg lettuce,<br />
grated Cheddar-Jack cheese, honey-mustard sauce and a deep-fried chicken strip wrapped in a tortilla. The company is also<br />
offering customers the option of grilled chicken instead of fried chicken in any of the wraps. In select units, McDonald’s is<br />
testing a Spicy Salsa-Roja Chicken Snack Wrap, featuring fire-roasted tomatoes, jalapeños, onions, cilantro and a touch of<br />
lime. . (Chicago Sun-Times 1/30/07; NRN Daily NewsFax 1/31/07; Company Release 1/30/07)<br />
McDonald’s will switch to a trans-fat-free oil to prepare its food. The chain has tested several different oils in the past seven<br />
years to find one that will not change the taste and texture of its fries or other menu items. The chain has already rolled out the<br />
cooking oil to 1,200 of its American restaurants. McDonald’s plans to have it used in all of its U.S. units by early 2008.<br />
(Chicago Tribune 1/28/07; USA Today 1/29/07; NRN Daily NewsFax 1/30/07)<br />
McDonald’s may add smoothies to its menu, as well as iced and specialty coffees. The company plans to bring new customers<br />
to its restaurants by offering the new beverages. (Chicagobusiness.com 2/28/07)<br />
McDonald’s plans to roll out the Cinnamon Melt to 11,000 units by this summer. The item is a warm, pullapart sweet roll with<br />
cinnamon glaze. (Crain’s Chicago Business 2/28/07; NRN Daily NewsFax 3/01/07)<br />
McDonald’s is considering expanding its beverage offerings with the addition of smoothies, iced coffees and specialty coffees.<br />
The company introduced premium coffee last year and saw coffee sales increase 15% as a result. McDonald’s said that it is<br />
currently working on an iced coffee beverage. (Crain’s Chicago Business 2/28/07; NRN Daily NewsFax 3/01/07)<br />
McDonald’s has been offering non-carbonated Pepsi products such as Gatorade, Lipton Iced Tea, Mountain Dew, Propel<br />
Fitness Water and Tropicana Orange Juice in addition to its Coca-Cola products in select outlets. The company is selling the<br />
products in cartons, cans and bottles. (Abcnews.com 3/12/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
414
McDonald’s is planning to expand its test of Pepsi bottled and canned beverages to stores in Wichita, KS. The chain, which<br />
sells Coca-Cola fountain drinks in stores, started testing Pepsi brands such as Mountain Dew, Vault, Gatorade, Propel Fitness<br />
Water and Lipton Tea last year. Results have been positive and the company may eventually take the program into more<br />
markets or even nationwide. (Crain’s Chicago Business 3/12/07)<br />
McDonald’s is testing a larger, higher-end Angus burger that costs more because of its extra weight. The item is currently<br />
available in Southern California in about 600 restaurants and is priced at $3.99. There are three burger varieties: a deluxe with<br />
American cheese, tomato slices, lettuce, red onion strips and pickles; a mushroom and Swiss cheese; and a bacon and<br />
American cheese version. (CNNMoney.com 3/07/07)<br />
McDonald’s is testing its new Angus Third Pounder in California. The burger features a bigger burger that is similar to a supersized<br />
Big N’ Tasty burger. There are three different versions: the Angus Deluxe, Angus Bacon & Cheese and Angus<br />
Mushroom & Swiss. The burgers are priced at $3.99. (Msnbc.msn.com 3/23/07)<br />
McDonald’s debuted espresso-based beverages to its 531 outlets in Michigan. The drinks include café lattes, mochas,<br />
cappuccinos and straight espressos. These are available plain and in vanilla or caramel flavors. Iced versions are also<br />
available. In other news, McDonald’s expanded the test of its ⅓-pound Angus burger to select Chicago-area stores. The $4<br />
sandwiches were previously available only in Southern California restaurants. (Nation’s Restaurant News 3/26/07 p3; Chicago<br />
Sun-Times 4/11/07)<br />
McDonald’s restaurants in Colorado are partnering with the Colorado Department of Public Health and Environment to<br />
promote healthier eating to customers. The chain will promote at 110 Colorado outlets 11 meal combinations that meet the<br />
nutritional standards of the state’s Smart Meal program. Smart Meals must contain no more than 700 calories, with less than<br />
15% of calories coming from saturated fats. The meals must also have less than 1,500 milligrams of sodium and a minimum of<br />
two servings of beans or whole grains and fruits or vegetables. Samples of Smart Meals at McDonald’s include a hamburger<br />
paired with a fruit-and-yogurt parfait and apple dippers, or a McDonald’s Asian Salad with grilled chicken. (The Denver Post<br />
4/05/07)<br />
McDonald’s and the Colorado Department of Public Health and Environment have partnered to promote healthy eating habits.<br />
McDonald’s restaurants are testing 11 meal combinations that meet the state’s standards for its Smart Meal program. Each<br />
meal is to contain no more than 700 calories, with less than 15% of those calories coming from saturated fat; less than 1,500<br />
milligrams of sodium; and a minimum of two servings of vegetables, fruit or whole grains. The menu items include a<br />
hamburger with apple dippers or a fruit-and-yogurt parfait, and an Asian Salad with grilled chicken. (Denverpost.com 4/5/07)<br />
McDonald’s rolled out Southwest Salad to its Premium Salad line-up. The item features mixed greens, cilantro-lime glazed<br />
chicken breast (grilled or crispy), oven-roasted tomatoes, bold black beans, fire-roasted corn and spicy poblano peppers,<br />
topped with chili-lime tortilla strips, a fresh lime wedge and Newman’s Own All-Natural Southwest Dressing. The item is priced<br />
at $4.29. (QSR Magazine 4/17/07)<br />
KFC, Arby’s, Carl’s Jr. and McDonald’s as well as many other chains are hopping on the Mexican-flavor bandwagon with new<br />
items featuring chipotle, poblano peppers, spicy beans and cilantro. KFC introduced its Grilled Mexi Bowl featuring Mexicanstyle<br />
rice, jalapeño pinto beans and pico de gallo relish; Arby’s is now offering a Santa Fe Salad; McDonald’s introduced its<br />
Southwest Salad; and for years, Carl’s Jr. has featured items such as breakfast burritos. (Nation’s Restaurant News 5/21/07<br />
p6)<br />
McDonald’s dollar menu, which currently offers only lunch and dinner items, might also include breakfast items. The company<br />
is currently testing grill systems that will allow for breakfast to be served all day. McDonald’s is trying to compete with other<br />
fast-food chains such as Wendy’s, Subway, Taco Bell and Burger King. Burger King offers its own version of the Egg McMuffin<br />
called the Ham Omelet Sandwich. (Sun-sentinel.com 5/25/07)<br />
McDonald’s is switching to trans fat-free cooking oils at all units within the next year. The chain already uses the oil at 3,500<br />
locations and will gradually transition the product into the remaining units. In addition, healthier menu items will be introduced.<br />
(Meat & Poultry Online 5/25/07)<br />
McDonald’s has extended a test of its Angus Third Pounders into an unidentified state in the Northeast, beginning in midsummer.<br />
McDonald’s is already testing three versions of the third-pound Angus beef burgers in California. The item sells for<br />
$3.99. (Nation’s Restaurant News 5/28/07 p52)<br />
McDonald’s introduced a Ranch BLT Premium Chicken Sandwich with all-white chicken breast, hickory-smoked bacon,<br />
lettuce, tomato and ranch dressing. (Company Promo)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
415
McDonald’s restaurants in Denver are now offering items with a Colorado “Smart Meal” seal, indicating that the item has 700<br />
calories or less and meets other guidelines from the Colorado Department of Public Health and Environment. The chain is<br />
currently offering 11 meals with the seal on them, containing no more than 30% total fat, no more than 0.5 grams of trans fat,<br />
no more than 1,500 milligrams of sodium and two or more servings of fruits, vegetables, beans or whole grains. McDonald’s<br />
plans to expand the line in all of its locations throughout the state. (Rockymountainnews.com 7/10/07)<br />
McDonald’s plans to add new items to its breakfast menu to help counteract breakfast inroads by Starbucks, Burger King and<br />
other chains. McDonald’s will add specialty coffee and new sandwiches in hopes of continuing to dominate the breakfast<br />
market. (Chicagobusiness.com 7/25/07)<br />
McDonald’s is testing the addition of flavor shots to the beverage fountain at its Kansas City units and Bryan-College Station,<br />
TX, locations. The quick-service chain is teaming with Coca-Cola to offer flavor additions such as vanilla, cherry and berryblue<br />
to cold drinks. (QSRMagazine.com 8/23/07)<br />
McDonald’s locations in Arizona will offer iced coffee beginning September 4. The coffee will be available in regular, vanilla<br />
and hazelnut and are priced at $1.69 for a 24-oz. and $1.99 for a 32-oz. In addition, the chain will offer a free 12-oz. iced<br />
coffee with any purchase September 12–15. Iced coffee has been available in select markets, including Chicago, throughout<br />
the summer. (Bizjournals.com 8/29/07)<br />
McDonald’s premiered its Angus Third Pounders in the New York and Central Ohio markets after receiving positive customer<br />
feedback from the menu item’s premiere in Southern California last March. The burgers are made with 100% USDA-inspected<br />
Angus beef and include ingredients such as red onions, sautéed mushrooms, iceberg lettuce and sliced red tomatoes on a<br />
bakery-style sesame-seed roll. Angus Third Pounders are offered in three varieties: Angus Mushroom and Swiss, Angus<br />
Deluxe and Angus Bacon and Cheese. (PRNewswire 8/17/07; QSRMagazine.com 8/20/07)<br />
McDonald’s added a Chipotle BBQ Snack Wrap to its menu. The new item features crispy or grilled all-white meat chicken<br />
breast, shredded lettuce and cheese, drizzled with smoky chipotle BBQ sauce and wrapped in a soft flour tortilla. This latest<br />
snack addition is priced at $1.39. (NRN Daily NewsFax 8/1/07)<br />
McDonald’s is expanding its niche in the specialty coffee industry. The chain’s McCafé outlets are capitalizing on the coffee<br />
trend by offering lattes, cappuccinos and iced brews in 9,000 U.S. McDonald’s restaurants. McDonald’s prices are lower than<br />
those of competitors. McCafé menus specialty coffee drinks for approximately 26% less than Starbucks’ prices. Starbucks<br />
controls 52% of the global specialty coffee market and McCafé is ranked fifth with 1.7%, according to Euromonitor<br />
International Plc. Almost six in 10 adults drink coffee, according to the National Coffee Association, making it the second most<br />
popular beverage after water. (Bloomberg.com 9/11/07)<br />
McDonald’s is adding lattes, cappuccinos and other specialty drinks in all of its 14,000 U.S. units next year, according to<br />
planning documents obtained by Crain’s. The company is predicting a $1 billion increase in volume from the additional coffee<br />
beverages. McDonald’s has estimated retrofitting costs to average $100,000 per location for automatic brewing equipment and<br />
drive-thru modifications. It expects to have latte and cappuccino equipment in 1,500 locations by the end of 2007. In addition,<br />
franchisees will also have to install smoothie makers and wall-mounted refrigerators for bottled sodas and energy drinks.<br />
(Crain’s Chicago Business Online 10/1/07; NRN Daily NewsFax 10/2/07)<br />
McDonald’s Corp. will introduce the McSkillet Burrito to all of its U.S. restaurants by late November. The McSkillet Burrito is<br />
the chain’s first breakfast sandwich addition since 2003. A burrito featuring steak, scrambled eggs, potatoes, cheese and red<br />
and green peppers, has been testing in certain markets. Another version replacing the steak with sausage is expected as well.<br />
(Chicago Tribune 11/10/07, NRN.com 11/18/07)<br />
McDonald’s Corp. intends to roll out premium coffee drinks in all of its U.S. stores beginning next year. There are currently<br />
more than 800 stores test-marketing the new line of beverages. The rollout is slated to run through 2009. Also, the company<br />
says a Southern-style chicken biscuit breakfast sandwich will be released in 2008. (Yahoo! Finance 11/13/07)<br />
McDonald’s unveiled the McSkillet Burrito nationwide November 27. TV, radio and print ads, along with in-store displays, are<br />
supporting the launch. The company plans to conduct sampling events in December to help introduce the product, and will<br />
also hold a “surprise event” February 29. (Brandweek.com 11/27/07, NRN.com 11/27/07)<br />
Franchise Activity |<br />
McDonald’s franchisee, Carter Co. Inc., will demolish its McDonald’s unit next to Wichita State University in May and rebuilding<br />
before the students return to classes for the fall semester. The new building will be more modern and relevant to customers.<br />
The rebuilding project will cost $1 million and the franchisee will share the cost with McDonald’s Corp. (Wichita Business<br />
Journal 4/20/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
416
International Activities |<br />
McDonald’s Korea is opening a flagship store in South Korea just north of Seoul. The restaurant is 3,300 square meters and<br />
provides drive-thru facilities, a playground and party zones. It will be open 24 hours a day. McDonald’s Korea is planning to<br />
open five to seven similar outlets in the country. Last year, McDonald’s Korea spent $4.26 million on upgrading and renovating<br />
its units as well as developing menus tailored to local diners. The company currently has 770 stores in the country. (Nation’s<br />
Restaurant News Online 11/09/06)<br />
McDonald’s is expecting to open 100 units per year in China, with the hope of having 1,000 locations by 2008. In other news,<br />
the company has rolled out new menu options at its Chinese units. New beverages include Blue Haven, a peppermint-flavored<br />
soda, and McFizz, a Sprite-based beverage available in orange and berry flavors. Also introduced were two new Filet-O-Fish<br />
sandwiches: Premium Filet-O-Fish (twice the size of the original, featuring lettuce, tomato, carrots and red cabbage) and Spicy<br />
Filet-O-Fish (a spicier version of the original). (Chicago Sun Times 11/10/06)<br />
McDonald’s is focusing on continued growth in China. The company currently has 770 stores in the country and plans to open<br />
100 new outlets per year. McDonald’s expects to have 1,000 units by 2008 for the Beijing Olympics. McDonald’s is focusing its<br />
marketing efforts in China on hamburgers even though the chain sells more chicken sandwiches than beef. The company<br />
reported that it sold an average of 12,000 units of beef per restaurant per month between January and July and 26,000 units of<br />
chicken during the same time period. The company’s other efforts in China include educating customers about the safety and<br />
quality of its food products, including an “open kitchen” policy that allows patrons to visit the restaurant’s kitchen as well as the<br />
farms that produce foods for the company. McDonald’s is also working to make the food more affordable, including lowering<br />
the price of its value meal from 12.50 yuan to 10 yuan ($1.27 USD), and adding drive-thrus at several locations. The company<br />
plans to add a breakfast menu at all of its Chinese units next year despite the fact that most Chinese people eat breakfast in<br />
their homes. (Crain’s Chicago Business 11/20/06 p1; Chicago Sun Times 12/04/06)<br />
McDonald’s Peru expects to open four units of its McCafé concept in Peru in 2007. McDonald’s Peru, subsidiary of<br />
McDonald’s, is focusing on expansion in Lima. The company has already opened one Lima far this year; there is another<br />
outlet in Surco. The McCafé brand already operates in other Latin American countries, including Guatemala, Costa Rica,<br />
Ecuador, Chile and Argentina. (Latin America News Digest 1/16/07)<br />
McDonald’s Corp. is rolling out environmentally friendly coffee to its 1,200 UK and Ireland outlets. Restaurants in the United<br />
Kingdom and Ireland will sell Kenco coffee, a Kraft Foods Inc. coffee prepared with Arabica beans that are certified by<br />
Rainforest Alliance. Since 2006, McDonald’s USA has selling Green Mountain Coffee in partnership with Newman’s Own<br />
Organics at about 600 units in Northeast. (Reuters 1/08/07; Chicago Tribune 1/09/07)<br />
McDonald’s Corp. is contemplating selling its company-owned outlets in Brazil, Argentina and other Latin American markets to<br />
franchisees. If such a sale occurs, it would raise about $1.8 billion. In 2006, at the urging investor Bill Ackman, McDonald’s<br />
increased the number of units franchisees could purchase. (Bloomberg.com 1/04/07)<br />
McDonald’s will limit its franchises in China this year. The company is granting only four franchisee licenses in the country.<br />
(Chicagotribune.com 2/8/07)<br />
McDonald’s is considering selling its Latin American units to an investment fund. The most likely buyer was Brazilian fund<br />
Pactual, which would pay $600 million for the units, a price much less than McDonald’s was asking for. No final decisions have<br />
been made. (SeekingAlpha.com 3/20/07)<br />
McDonald’s outlets in Europe are being revamped and new menu items are being added. McDonald’s design studio has<br />
created 11 design elements from which the international franchisees can choose. These include low-hanging lampshades,<br />
wooden tables and long communal tables. The company has also replaced its plastic seating with upholstered seating and<br />
imitation-leather banquettes. At restaurants in France, McDonald’s has installed iPods so that customers can listen to music<br />
while dining. Outlets in London have lime-green “egg” chairs that were designed by a Danish architect. <strong>Menu</strong> changes at<br />
European McDonald’s outlets include adding local dishes such as porridge in London and soup in Portugal. (Los Angeles<br />
Times 3/05/07)<br />
McDonald’s expects to have more than 200 restaurants in Russia by year’s end. The company currently has 170 outlets<br />
operating in the country and plans to open 30 more. The majority of the new stores will be located in Moscow, the Moscow<br />
region and St. Petersburg as well as other larger cities where the company currently has outlets. The restaurants operating in<br />
Russia are all company-owned. McDonald’s also plans to use only domestically produced products at its units in Russia.<br />
Presently, the chain gets 80% of its products domestically. In related news, McDonald’s is also planning to expand its McCafé<br />
concept in the country. There are currently 27 McCafé units and the company did not specify how many more it plans to open.<br />
(Russia & CIS Business and Financial Newswire 3/21/07)<br />
McDonald’s opened its first restaurant in Himachal Pradesh, India, on April 9. The building site will boast a 23-room hotel, a<br />
food court and a mono-cable tram. McDonald’s now operates 110 restaurants in India. (Earthtimes.org 4/9/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
417
McDonald’s will allow unionization of its restaurants in China. By doing this, the company is cleared of breaking labor laws in<br />
the nation’s south. KFC is doing the same. (Forbes.com 4/10/07)<br />
McDonald’s master franchisee in the Philippines, Golden Arches Development Corp., plans to undertake an IPO in the second<br />
half of 2007. The proceeds from the IPO will be used to fund the franchisee’s further expansion in local markets. Golden<br />
Arches operates 250 McDonald’s outlets in and around Manila. (NRN Daily NewsFax 4/12/07)pril 20<br />
McDonald’s China and Yum! Restaurants China plan to allow the unionization of employees in southern China this year. The<br />
All-China Federation of Trade Unions was in discussions with the chains for some time and is in the middle of a campaign to<br />
boost its presence with foreign companies. According to local reports, some limited-service restaurant companies underpay<br />
part-time workers in some parts of the country by up to 40% below the minimum wage of about $1 an hour. Both McDonald’s<br />
and Yum! were cleared of similar labor violations by Shanghai officials. All-China Federation has been working with the<br />
companies to clarify newly revised wage laws, especially those in regards to part-time and student workers in the Guangdong<br />
province. (Forbes.com 4/06/07; NRN Daily NewsFax 4/09/07; Xinhua Financial Network News 4/09/07; New York Times<br />
4/09/07; NRN Daily NewsFax 4/11/07)<br />
McDonald’s has been fined $80,000 for employing underage staff at three of its locations in Perth, Australia. The company<br />
was found guilty in the Industrial Magistrates Court of almost 40 offences. Government officials claim that McDonald’s failed to<br />
obtain written permission from the children’s parents for them to work certain hours. (Abs.net.au 6/6/07)<br />
McDonald’s is stepping up expansion in Ukraine in response to increased demand for fast food. The company’s Ukraine<br />
director, Ihor Delov, said that the company plans to double the number of its restaurants to 100 over the next five to seven<br />
years. McDonald’s currently has 57 units in 16 Ukrainian cities. (KYIV Post 6/14/07)<br />
McDonald’s is making efforts to expand in Russia and China, with a minimum of 100 stores opening in China this year.<br />
(Restaurants & Institutions Online 5/29/07)<br />
McDonald’s Holdings Co. of Japan has instituted a new price-gap policy between its urban and rural-based stores. The<br />
company’s practice of hiking prices in urban areas and lowering them in rural districts is limited to a 90-yen gap between<br />
prices. The regional variation in prices is due to rising labor costs in major urban centers such as Tokyo, Kyoto and Osaka.<br />
(The Japan Times 6/22/07)<br />
McDonald’s (Japan) may compete with Starbucks with a coffee shop concept that offers bargain lattes. The Japan unit of<br />
McDonald’s Corp. will open 15 test McCafé stores in the Tokyo area on August 29. The company is considering opening<br />
McCafés across Japan in the next fiscal year. (Associated Press 7/12/07)<br />
McDonald’s (China) is being sued by a Chinese lawyer because a unit in Beijing used mostly English, not Chinese, on its<br />
receipts. The plaintiff is asking McDonald’s to apologize to him in newspapers and give him symbolic compensation of one<br />
yuan (13 U.S. cents) for allegedly violating his right to information. (Reuters 7/27/07)<br />
McDonald’s (Japan) pulled more than 13,500 cartons of milk that could be contaminated with coliform bacteria. McDonald’s<br />
said that the health risk was minimal. The chain offered to reimburse anyone who purchased the tainted milk. (Associated<br />
Press 7/18/07)<br />
McDonald’s managing director at its Hong Kong branch, Joseph Lau, was arrested for allegedly receiving bribes from food<br />
distributors who supply the units. It is not known whether McDonald’s suspended Lau or if he took leave voluntarily. (NRN<br />
Daily News Fax 8/15/07)<br />
McDonald’s India teamed with Sony Pictures to promote the Penguin World’s Surfing Championship with the animated film<br />
Surf’s Up. Until September 4, all McDonald’s Happy Meals will carry one of 10 different characters from the movie. In addition,<br />
the Happy Meals will contain scratch-and-win coupons for a chance to win prizes from Zapak and 12 families will also get an<br />
opportunity to win an all-expenses paid trip to Thailand. (Indiantelevision.com 8/14/07)<br />
McDonald’s is facing opposition in Berlin’s Kreuzberg neighborhood over the opening of a new unit. Small demonstrations<br />
against the restaurant have been held and obscene anti-McDonald’s graffiti has appeared on the site’s fence. Kreuzberg<br />
inhabitants argue that the chain will tempt local students to eat fattening fast food and diminish the area’s unique diversity of<br />
independent restaurants. Of McDonald’s 1,276 units in Germany, 40 are located in Berlin. (Yahoo! News 7/29/07)<br />
A McDonald’s franchisee was charged with fire-code violations after an explosion at a restaurant in Calcutta, India, killed one<br />
and seriously injured four others on August 13. Police have ruled out sabotage and terrorism in the blast. The cause of the<br />
explosion was initially blamed on a malfunctioning high-compression air-conditioning system. (Nation’s Restaurant News<br />
9/3/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
418
McDonald’s units in Japan offered half-price Big Macs in exchange for customers’ pledges to fight global warming. Customers<br />
were asked to download a form from the Environment Ministry’s website and list ways they could reduce carbon dioxide<br />
emissions. The initiative was part of the chain’s strategy to meet Japan’s global warming standards as set by the Kyoto<br />
Protocol. (Yahoo! News 9/5/07)<br />
McDonald’s New Zealand branch plans to abolish different pay rates for young employees and budget $7 million a year to<br />
increase pay packets of 16- and 17-year-old employees. McDonald’s, one of New Zealand’s largest employers of youths with<br />
approximately 30% of its 6,000 workers under 18, has had difficulty recruiting younger staff members with its current pay rate.<br />
The fast-food chain is hoping this initiative revives its image as a competitive employer. The new policy is slated to begin in<br />
March of 2008. (The New Zealand Herald Online 9/12/07; Radio New Zealand News 9/11/07)<br />
McDonald’s hamburger waste will power buildings in South Yorkshire County in the U.K. Refuse will be turned into electricity<br />
and heating for 130 buildings, including the Lyceum theatre and the Weston Park Hospital in Sheffield, in which 11 McDonald’s<br />
restaurants in the county will take part. McDonald’s plans to introduce the scheme across the U.K. if it is successful.<br />
(News.bbc.co.uk 9/19/07)<br />
McDonald’s business is booming in Russia. Of the 118 countries that McDonald’s calls home, Russia is the busiest, with each<br />
location serving 850,000 people annually. However, the company is hesitant about expanding operations in the country, partly<br />
due to Russia’s bureaucracy and partly to McDonald’s philosophical shift. The company’s expansion plans in the past have<br />
backfired, leaving it to focus on quality. Instead of adding new units in the country, McDonald’s is focusing on improving its<br />
existing locations. (Wsj.com 10/16/07)<br />
McDonald’s U.K. is rolling out free wireless Internet access in its 1,200 restaurants. The company claims this move will make it<br />
the largest free Wi-Fi provider in the U.K. McDonald’s currently offers free Wi-Fi in more than half of its 13,000 U.S.<br />
restaurants as well as select stores in Belgium. (Financial Times Online 10/6/07)<br />
McDonald’s has canceled its franchise agreement with Japanese operator Athlete Co. because of altered food labels.<br />
McDonald’s took control of Athlete’s four Tokyo restaurants after the franchisee admitted to changing labels on 12-hour-old<br />
salads to make them look freshly prepared. McDonald’s says that despite violating company rules by not throwing away the<br />
salads after 12 hours, the operator did not violate the food sanitation law. (Suntimes.com 11/27/07)<br />
Technology |<br />
McDonald’s is using the Internet as a way to reach consumers. The burger chain is posting blogs in response to other<br />
bloggers’ criticism as well as producing podcasts. In addition, McDonald’s is trying to reach out to younger consumers by<br />
posting video “webisodes” on YouTube and Yahoo. Ronald McDonald even has his own MySpace page. In other news, the<br />
chain is testing self-serve kiosks in select restaurants and also experimenting with handheld devices that process orders.<br />
(Crain’s Chicago Business 10/24/06)<br />
McDonald’s locations in Chicago have ended its tests that enabled customers to use laptops, cell phone and handheld devices<br />
to request in-restaurant entertainment. (NRN Daily NewsFax 2/1/07)<br />
McDonald’s franchisees in the Chicago area tested the use of technology that allowed customers to use cell phones, handheld<br />
devices or laptops to request music or videos for in-store entertainment. The test ran at three franchised stores. One of those<br />
outlets reported that the technology contributed to a 17% increase in same-store sales. (NRN Daily NewsFax 2/01/07)<br />
McDonald’s Corp. is using nontraditional media outlets to attract a younger demographic. The company has recently posted<br />
banner ads on Yahoo and MSN search engines and debuted several one-minute commercials on YouTube and Google Video.<br />
In addition, it also featured ads on TMZ.com, a gossip website, during the holiday season. (Crain’s Chicago Business 1/22/07<br />
p16)<br />
McDonald’s Corp. will add about 179,000 Wi-Fi “hotspots” in 2007. Hotspots are locations where customers can get wireless<br />
internet access. (Boston.com 4/25/07)<br />
McDonald’s is testing new cash registers to decrease the number of incorrectly filled orders at 10,000 of its 32,000<br />
restaurants. The registers have large touch screens with colorful images rather than small buttons with product abbreviations.<br />
With 65% of sales derived from drive-thru service, the new system is estimated to improve accuracy by 33% and is expected<br />
to allow restaurants to serve a dozen more cars an hour. (Chicago Business Online 8/4/07)<br />
McDonald’s partnered with SK Telecom to implement a new ordering system using mobile phones and infrared sensors that<br />
enable customers to order from their table. The system, “Touch Order,” sends customers a text message when the food is<br />
ready. The “Touch Order” menu is the first in the world to utilize radio-frequency identification (RFID) technology in a selfordering<br />
system at a restaurant. The system was unveiled at McDonald’s Shinchon branch in western Seoul. SK Telecom<br />
hopes to expand it to more McDonald’s locations by December, and to other chains by 2008. (Koreatimes.co.kr 9/12/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
419
Personnel |<br />
Jan Fields, COO/President<br />
Dan Coudreaut, Culinary Director<br />
Jim Skinner, CEO<br />
Peter J. Bensen, CFO<br />
Mary Dillon, CMO<br />
McDonald’s Corp. promoted Peter J. Bensen to corporate senior vice president. Previously, Bensen served as the company’s<br />
corporate vice president. (Company Release 3/23/07)<br />
McDonald’s Chief Financial Officer Matthew Paull retired. A search for Paull’s replacement will begin soon. (Company Website<br />
8/24/07)<br />
McDonald’s has appointed Neil Golden as senior vice president and chief marketing officer, effective April 1, 2008. Golden<br />
most recently served as vice president of marketing. He replaces William Lamar, who is retiring after more than 20 years with<br />
the company. (Yahoo! Finance 11/29/07, Company Release 11/29/07)<br />
News & Other |<br />
McDonald’s is being sued by a Texas family after they found a dead rat in their salad that they had begun to eat. The lawsuit<br />
seeks $1.7 million in damages. The family claims that they filed the suit after the restaurant had failed to “make things right.”<br />
(Chinadaily.com 10/30/06)<br />
McDonald’s reported for October same-store sales increased 5.5%. (Company Release 11/14/06)<br />
McDonald’s will promote the availability of wireless Internet service at its 7,600 U.S. location by year’s end. The company<br />
originally offered the $2.95-per-two-hours service at more than half of its 13,800 U.S. units and has since rolled it out in 100<br />
additional units every month. McDonald’s said that few consumers were aware of the service. (NRN Daily NewsFax 11/06/06)<br />
DVD vending machines are being installed at select Wendy’s, Meijer and White Castle locations in Columbus, OH. The<br />
vending machines, similar in size to soft-drink vending machines, offer 800 movie titles, with prices ranging from $10-$20.<br />
McDonald’s tested the system in Denver in 2004 and currently has the machines in five units in other cities. (Akron Beacon<br />
Journal 11/01/06)<br />
Trans fats will be reduced or eliminated from some menu items at several chain restaurants. Popeye’s Chicken & Biscuits is<br />
eliminating trans fats from its biscuits and will introduce reducedtrans-fat french fries by year’s end. Burger King will test a<br />
trans-fat-free frying oil within the next 90 days. IHOP is also testing a trans-fat-free oil at its restaurants in the U.S. and<br />
Canada. KFC is using a trans-fat-free soybean oil at its units in New York and Chicago and will roll it out systemwide by spring<br />
of 2007. Souper Salad plans to be trans-fat-free by early December. McDonald’s units in Australia have switched to a frying oil<br />
that is nearly free of trans fatty acids. McDonald’s European units will cut the level of trans fats in frying oil to 2% by 2008.<br />
McDonald’s will use a blend of canola oil and high oleic sunflower oil at these locations. The company did not say whether or<br />
not it would roll out the oil to its U.S. locations. (Los Angeles Times 11/07/06; Reuters 11/07/06; NRN Daily NRN Daily<br />
NewsFax 11/01/06, 11/08/06, 11/10/06)<br />
McDonald’s is offering aerobic activity with its R-Gyms which have replaced the old playplaces at some units. The new play<br />
area offers rope climbing, stationary exercise bikes and other aerobic, sports-oriented activities. (Chicagotribune.com 12/4/06)<br />
McDonald’s reported November same-store sales increased 10.5%. (Company Release 12/8/06)<br />
McDonald’s will voluntarily change its advertising for children. The company is joining forces with nine major foods companies<br />
in an effort to promote healthier diets and lifestyles for children. McDonald’s is the only restaurant that is a member of the<br />
Children’s Food and Beverage Advertising Initiative. The initiative also calls for removing advertising for food and beverages in<br />
schools; limiting products in interactive games to healthier ones; eliminating food and beverage product placements from<br />
editorial and entertainment content; and reducing the use of third-party licensed characters in ads that do not meet the group’s<br />
product or message criteria. In related news, the company continues to roll out its R-Gym to U.S. restaurants. The newest<br />
location is in Santa Ana, CA, and 20 more are planned. The R-Gym features stationary bikes, monkey bars, climbing ropes<br />
and a mini basketball court. (Nation’s Restaurant News Online 11/29/06; UPI.com 11/21/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
420
McDonald’s Corp. is struggling to change to trans fat-free oils, according to recent reports. The chain announced back in 2002<br />
that it was planning a move to trans fat-free oil. With New York’s recent legislation to ban trans fats and other chains<br />
announcing plans to cut back or eliminate trans fats, McDonald’s has been testing oils and has said that it will cut the level of<br />
trans fats in its cooking oil in Europe to 2%. The chain has not said whether or not it plans to use the same oil stateside.<br />
(Crain’s Chicago Business 11/13/06 p18)<br />
McDonald’s plans to double the number of units offering automated DVD rental kiosks to about 1,600 outlets. The vending<br />
machines, operated by Redbox Automated Retail LLC, are currently available in 800 restaurants in Baltimore, Denver,<br />
Houston, Minneapolis, Salt Lake City and St. Louis. The kiosks allow customers ages 18 and over to rent a DVD from about<br />
70 current releases for $1 per night. They can rent the DVDs using a credit or debit card and may return them to any of the<br />
kiosks. (Nation’s Restaurant News Online 12/05/06)<br />
McDonald’s will convert restaurants in the Houston area as part of its “Forever Young” campaign. Changes include softer<br />
lighting, classical music, plasma-screen televisions Wi-Fi and updated restrooms. In addition to the changes, the location will<br />
be divided into “zones”: “Fast Zone” where customers in a hurry can order fast and eat on bar stools, “Family Zone” featuring<br />
larger tables to accommodate groups and “Casual Zone” featuring comfortable, oversized seating. Some of the units will<br />
include a fireplace and couches. (Bizjournals.com 12/22/06)<br />
McDonald’s reported for the fourth quarter same-store sales increased 6.3%. (Company Release 1/17/07)<br />
McDonald’s has added stationery exercise bikes to its new children’s play areas. The stationary bikes are a part of the<br />
company’s re-imaging campaign throughout the Valley. (Company Release 1/29/07)<br />
McDonald’s reported January same-store sales rose 3.6% in the U.S. and 6.8% in Europe. (Company Release 2/8/07)<br />
McDonald’s franchisee will give up ownership of the restaurants after a rare bankruptcy. Federal court-supervised bids ranged<br />
from $600,000 to $1.6 million for the units. (NRN Daily NewsFax 2/20/07)<br />
McDonald’s will sponsor Ohio State University athletics beginning in July. McDonald’s is replacing Wendy’s International Inc.<br />
Wendy’s had a 20+ sponsorship with the university. (Bizjournals.com 3/13/07)<br />
McDonald’s reported February same-store sales increased 5.7% globally. (Company Release 3/8/07)<br />
McDonald’s Corp. is revamping its kitchens to better accommodate its breakfast service. Many franchisees are speculating<br />
that these moves are a precursor to all-day breakfast. The company’s “breakfast optimization” program aims to bring greater<br />
efficiency to the production of Egg McMuffins, McGriddles and other morning fare. (Crain’s Chicago Business 2/20/07)<br />
Ohio State University in Columbus, OH, has inked a deal with McDonald’s which will replace Wendy’s as the university’s<br />
sports sponsor. Under the deal, the football and basketball arenas will feature the McDonald’s name and logo. The deal will<br />
also allow for cross-promotional opportunities such as selling tickets to the Buckeyes spring football game at central Ohio<br />
McDonald’s outlets. (AFX International Focus 3/14/07)<br />
McDonald’s protested recent remarks that by Prince Charles the UK should ban the chain in an effort to help kids create<br />
healthier diets. Prince Charles made the remark after he visited a diabetes center in Abu Dhabi in the United Arab Emirates.<br />
McDonald’s said that he must not have been aware of recent menu changes to improve the choice and variety on its menu.<br />
(The Atlanta Journal-Constitution 3/06/07; UPI.com 2/27/07)<br />
McDonald’s franchisee GLC Restaurants has agreed to pay $550,000 to eight female employees who claimed they were<br />
sexually harassed by a male supervisor at two Arizona locations. (NRN Daily NewsFax 3/23/07)<br />
McDonald’s will pay a penny per pound more to field workers in Florida who pick the company’s tomatoes. The deal between<br />
McDonald’s and the Coalition of Immokalee Workers was brokered byformer President Jimmy Carter. McDonald’s has overall<br />
standards for its suppliers in place for the past 15 years, and last year added stipulations for field workers. In addition to the<br />
raise in pay, the new code includes other regulations for farm workers, such as worker monitoring and inspection and outside<br />
compliance checks. McDonald’s and the Coalition of Immokalee Workers are working together to expand the new code to<br />
include oranges and lettuce picked by immigrant workers in other parts of the country, including Arizona and California.<br />
Activists are expected to use the agreement as a template for future negotiations between worker groups and other restaurant<br />
and grocery chains to selecting improved working conditions in agricultural fields across the country. (Chicago Tribune<br />
4/10/07; Company Release 4/09/07)<br />
McDonald’s reported for the first quarter 2007 global same-store sales increased 6.3%, domestic same-store sales rose 4.4%<br />
and Europe’s same-store sales grew 8%. For the month of March, global same-store sales rose 8.2%, domestic same-store<br />
sales grew 6.2% and Europe’s same-store sales increased 11.2%. (Company Release 4/13/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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421
McDonald’s and Lanza Group LLC have teamed to sponsor Fiesta Atlanta ’07, a Cinco de Mayo celebration. The celebration<br />
will take place at Centennial Olympic Park in Atlanta on May 6. Featured will be national and local musical acts on the main<br />
stage. Also part of the celebration will be food from Latin American countries and an artist’s market. (Earthtimes.org 4/6/2007)<br />
McDonald’s offer to pay tomato farm workers in Florida a penny more per pound has been rejected by the Florida Tomato<br />
Growers Exchange, which said it was advised by attorneys that participating in the deal could leave growers open for antitrust<br />
lawsuits and racketeering. (Associated Press 5/24/07)<br />
McDonald’s is being sued by a woman who fell on slick steps leading from a restaurant in August 2006. The woman is seeking<br />
in excess of $50,000 for injuries to her mouth and left knee in a complaint filed June 1 in St. Clair County Circuit Court. She<br />
claims that the stairs were not safe because they were covered with debris, which the restaurant should have known about.<br />
(madisonrecord.com 6/6/07)<br />
McDonald’s reported May same-store sales increased 7.4% domestically, 8.9% in Europe and 10.2% in Asia/Pacific, Africa<br />
and the Middle East. Global same-store sales rose 8.7%. Systemwide sales for May grew 11.9% worldwide. The company<br />
attributed the sales increase to its “Shrek the Third” movie promotion, snack wraps and chicken sandwiches. (Company<br />
Release 6/8/07)<br />
McDonald’s won dismissal on May 30 of three out of five lawsuits against the company over allergens that were said to be in<br />
the hash browns and french fries. The judge said the plaintiffs’ complaint did not give enough detail about an alleged scheme<br />
by the company to hide the existence of dairy and gluten in its products. However, two suits on breach of warranty and unjust<br />
enrichment will proceed. The suits seek to force the company to change product information in its advertising. (Bloomberg<br />
News 5/31/07)<br />
Jack in the Box is being sued by CKE Restaurants for deceptive advertising involving its Carl’s Jr. and Hardee’s, as well as<br />
McDonald’s and Burger King. The complaint states that Jack in the Box advertisements imply competitors use cow anus to<br />
make Angus burgers. CKE seeks a court ruling blocking the ads. (MSNBC.com 5/29/07; NRN Daily NewsFax 5/29/07)<br />
McDonald’s new ad campaign aims to change the image of “McJobs” into “McCallings.” This initiative highlights the rewards of<br />
company jobs, particularly the opportunity for internal promotions and the start of lifelong careers. Ads are targeting both U.S.<br />
and British audiences. (BusinessWeek 6/4/07 p13)<br />
Burger King—along with a number of national quick-service chains, including McDonald’s and Wendy’s—is refusing to comply<br />
with a New York City ordinance that requires certain fast-food restaurants to post calorie content information on menu boards.<br />
The new rule states that fast-food operators must list calorie values next to menu items in type that is as large as the price of<br />
the item. Burger King and its counterparts contend that the rule unfairly singles out quick-service restaurant companies that<br />
already voluntarily offer nutritional information. (Yahoo! News 6/26/07)<br />
McDonald’s is revamping the interiors of a number of units in Germany. The new design elements include fireplaces, leather<br />
sofas, hardwood floors and plants. With these changes, company executives hope to create a more comfortable atmosphere<br />
for dine-in patrons, in an effort to attract older customers in Europe, where the population is aging. (Reuters.com 6/27/07)<br />
McDonald’s employees in a Tel Aviv unit spent hours counting change after 10 high school students visited the unit and<br />
ordered $150 worth of food, and paid with small coins. The teenagers decided to “get revenge” for waiting in long lines, then<br />
they saved loose change for a year. The stunt resulted in the McDonald’s location losing the equivalent of a day’s work with<br />
fewer employees manning their stations. (Ynet 7/12/07)<br />
McDonald’s recognized four business and community leaders during its 365Black Awards celebration. The celebration, held<br />
during the Essence Music Festival at the Ernest Morial Convention Center in New Orleans, honored Marian Wright Edelman,<br />
founder and president of the Children’s Defense Fund; Michelle Ebanks, president of Essence Communications Inc.; Linda<br />
Dunham, owner/operator and chairman of the board for Ronald McDonald House Charities; and Roy Griggs, McDonald’s<br />
owner/operator recognized for his work in assisting New Orleans evacuees and fellow operators affected by Hurricane Katrina.<br />
The 356Black Awards are McDonald’s tribute to African American leaders for their service and contribution to bettering the<br />
lives of African Americans across the country and in their communities. (Eurweb.com 7/18/07)<br />
McDonald’s is being sued by a Texas police officer for serving coffee with a one-inch-long cockroach on the cup that later<br />
crawled into his mouth. The incident happened in 2006 at a Cleburne, TX, unit. The lawsuit was filed after the police officer<br />
and restaurant manager were unable to resolve the matter. (United Press International Online 6/14/07)<br />
McDonald’s Hawaii locations are being redesigned to include double drive-thru service. Renovations also include expanded<br />
playground equipment for children and the addition of McCafés. McDonald’s has finished renovating 15 of its 75 Hawaii<br />
locations and will complete another five by the end of 2007. (Pacific Business News Online 6/20/07)<br />
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published.<br />
422
McDonald’s reported for the second quarter net earnings rose 4.3% and revenues increased 12%. However, the company<br />
reported a loss of $711.7 million, compared to a profit of $834.1 million last year, because of a charge in connection with its<br />
license developmental transaction in Latin America. (RTT News 7/24/07)<br />
McDonald’s is standardizing a 5 a.m. opening time to accommodate consumers’ increasingly earlier breakfast times.<br />
Approximately 75% of the chains 13,700 U.S. restaurants already open at 5 a.m. McDonald’s expects that extending its<br />
morning hours will boost unit sales, which currently average $2 million annually. (NRN Daily NewsFax 7/30/07; The Wall Street<br />
Journal Online 7/27/07)<br />
Children prefer food in McDonald’s wrappers over the same menu items in unmarked wrappers. A study by a Stanford<br />
University researcher attributes the effect to advertising that “tricks the taste buds” of young children. The study involved 63<br />
children ages 3 to 5, all of whom chose the marked McDonald’s food as the tastiest. (National Association of Convenience<br />
Stores 8/8/07; Detroit Free Press Online 8/7/07)<br />
McDonald’s plans to create a more sophisticated atmosphere with the remodeling of its locations in Europe. The company<br />
plans to replace the white, yellow and red plastic furniture with lime-green designer chairs and dark leather upholstery. The<br />
revamp will cost more than $828 million for the 1,280 locations that will be redesigned by the end of the year. (nytimes.com<br />
8/21/07)<br />
McDonald’s sale of Boston Market has been cleared by federal antitrust regulators. McDonald’s plans to sell the chain to Sun<br />
Capital Partners for an undisclosed amount. (Associated Press 8/20/07)<br />
McDonald’s is revising its marketing strategy for selling Happy Meals to children as part of a pledge made by 11 major food<br />
marketers not to advertise unhealthy foods to kids aged 12 and under. The initiative stipulates that McDonald’s will only<br />
advertise meals that meet specific limitations for calories, fat, saturated fat and sugar recommended as part of the Dietary<br />
Guidelines for Americans. Advertising changes will begin in January 2008 with the promotion of a 375-calorie Happy Meal that<br />
includes four chicken McNuggets, apple slices, lowfat caramel dip and 1% lowfat milk. General Mills, PepsiCo, Mars and Kraft<br />
have also taken this pledge. (NRN Daily NewsFax 7/20/07)<br />
7-Eleven has passed McDonald’s as the most ubiquitous foodservice operation in the world, with 32,711 stores in 17<br />
countries. McDonald’s has dropped to second, with 31,062 locations as of March 31st in more than 100 countries. Subway<br />
Restaurants ranks third, with more than 27,800 units worldwide. 7-Eleven is in its 80th year of business. (Fort Worth Star-<br />
Telegram Online 7/12/07)<br />
McDonald’s locations in the Des Moines, IA, metro area are now offering DVD rentals. Machines inside the locations work as<br />
vending machines. Customers use a credit or debit card for payment, make a selection and the movie is dispensed. Newly<br />
released movies are priced at $1. The kiosks are located in 55 McDoanld’s restaurants in Des Moines and the surrounding<br />
area. (Kcci.com 8/28/07)<br />
McDonald’s shares will rise 18% in the coming year, UBS Securities estimates, because of its new concept, McCafé. The<br />
McCafés are challenging Starbucks with specialty coffee drinks. Starbucks shares declined 24% in 2007, as a result of its<br />
lowest sales growth in five years. The average price for a 20-oz. latte at a McCafé is $3.31, compared with the drink at<br />
Starbucks for $4.48. In addition to the increased sales, McDonald’s is drawing new customers. (Bloomberg.com 9/13/07)<br />
McDonald’s board of directors announced an annual cash dividend of $1.50 per share, to be issued December 3, to<br />
shareholders of record as of November 15. The cash returned to shareholders is expected to total $15 billion–$17 billion in<br />
2007–2009. (Restaurantnewsresource.com 9/13/07)<br />
Wal-Mart now hosts more Subways than McDonald’s. Subway, which began appearing in Wal-Mart three years ago, occupies<br />
1,419 Wal-Mart locations in the U.S., compared to McDonald’s 1,021 locations. Subway has had a successful move into retail<br />
spaces because of its minimal operations with no fryers or grills. (Yahoo! Finance 9/14/07; Houston Chronicle Online 9/14/07)<br />
A McDonald’s server was briefly sent to jail after selling a heavily salted Big N’ Tasty burger to a police officer. The 20-year-old<br />
employee was arrested, handcuffed and charged with reckless conduct after the police officer returned to the Union City, GA,<br />
unit to complain of being sickened by the burger. The employee, who admitted to accidentally spilling salt on the meat, was<br />
freed on $1,000 bail. (The Atlanta Journal-Constitution 9/9/07; Yahoo! News 9/9/07)<br />
McDonald’s is facing three new lawsuits filed in St. Charles, MO. The suits claim that McDonald’s failed to disclose that its<br />
french fries and hash browns contained two allergens until February 2006, and that the allergens caused illness among the<br />
plaintiffs or their children. It was claimed that McDonald’s previously identified the potato items as gluten-free on its website,<br />
when in actuality the products contain wheat gluten and milk protein casein. Currently, McDonald’s website states that those<br />
items contain wheat and milk. Sixteen similar suits are pending in Florida, Maryland and Chicago. (NRN Daily NewsFax<br />
9/26/07)<br />
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423
McDonald’s franchisee RANK Quality Restaurants LLC is being sued by a former employee who alleges that she was<br />
discriminated against and that the franchisee violated provisions of the Americans with Disabilities Act. Gladys Jones was<br />
hired in 2005, along with a job coach who would assist her in her work. Jones has a developmental disability. The franchisee<br />
fired Jones without warning when performance issues arose. The lawsuit claims that the restaurant did not provide reasonable<br />
accommodations as required by law because staff did not consult with Jones’ job coach so she could correct her mistakes.<br />
(Bizjournals.com 9/25/07)<br />
Eleven McDonald’s units in Nevada were raided, and dozens of suspected illegal immigrant workers were arrested. The<br />
workers arrested were from El Salvador, Guatemala and Mexico. Immigration and Customs Enforcement (ICE) said the<br />
workers could be criminally charged. (Allheadlinenews.com 9/29/07)<br />
McDonald’s will pay $6.1 million to a former employee who was strip-searched and forced to perform sexual acts in a back<br />
office after a caller posing as a police officer told management she was connected to a purse theft. A surveillance video<br />
recorded the incident. The employee at the Mount Washington, KY, restaurant sued the chain for $200 million after the 2004<br />
event for failing to issue warnings about similar hoaxes at other branches. McDonald’s said that it might appeal the decision.<br />
(Nation’s Restaurant News Online 10/8/07)<br />
McDonald’s is offering free meals to emergency service personnel who are dealing with the fires in California. The chain is<br />
also offering free Wi-Fi internet service so customers can stay in touch with family and friends. The free meals will be offered<br />
until November 1 with identification. (Firerescue1.com 10/25/07)<br />
McDonald’s temporarily closed 16 of its units in San Diego, CA, due to the fires in Southern California. (NRN Daily NewsFax<br />
10/24/07)<br />
McDonald’s has launched the largest fundraising effort for its Ronald McDonald House Charities since the program’s inception<br />
in 1984. The four-year plan calls for the addition of 68 new Ronald McDonald Houses and the expansion of 30 others. The<br />
effort also aims to open 56 new Ronald McDonald House Family Rooms and 23 new Ronald McDonald House Care Mobile<br />
health facilities. (NRN Daily NewsFax 11/26/07)<br />
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published.<br />
424
McGrath's Fish House<br />
Headquarters<br />
1935 Davcor Street SE, Salem, Oregon 97302 USA<br />
Tel: (503)399-8456 Fax: (503)391-2846<br />
www.mcgrathsfishhouse.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 73,000 65,700 57,500<br />
Company-owned ($000) 73,000 65,700 57,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 20 19 17<br />
Company-owned 20 19 17<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,800 3,650 3,600<br />
Concept Positioning |<br />
McGrath’s Fish House is a full-service, casual-dining seafood concept serving up a wide array of fresh seafood caught along<br />
the Pacific Coast and Northwestern Rivers. Its menu is touted as “Pacific Northwest Fresh.” With an emphasis on outstanding<br />
service and a family-friendly environment, McGrath’s offers large portions of seafood, steak, burgers, salads, appetizers and<br />
desserts for reasonable prices. The chain currently operates company-owned locations in Western states, including California,<br />
Arizona, Utah, Idaho, Oregon and Washington.<br />
Units are large and freestanding with table service, and are located primarily in suburban retail areas. With approximately<br />
7,500 sq. ft. of floor space, each unit follows a similar seafaring-themed interior décor, with rugged wooden beams, wheels,<br />
ropes, anchors and mounted fish. Seating includes spacious, comfortable booths; seating is also available in each unit’s bar<br />
area where customers can relax with a beer, glass of wine or a specialty cocktail.<br />
John McGrath launched McGrath’s Fish House in 1980 in Salem, OR. Today, the chain has 19 company-owned locations<br />
throughout the West. The company anticipates other new locations, specifically in Washington state.<br />
<strong>Menu</strong> Positioning |<br />
McGrath's Fish House offers one menu for lunch and dinner daily. The full-service concept specializes in a wide seafood<br />
selection and numerous preparation methods, including raw, in the shell, steamed, deep-fried, pan-fried, grilled or wood-fired<br />
fresh fish, shrimp, scallops, lobster and crab, and is famous for its homemade clam chowder and Fisherman’s Stew. Seafood<br />
appears in chowders and salads, appetizers and main-dish combinations such as Lemon Caper Sole -a lightly grilled Denver<br />
Sole topped with lemon caper sauce; Coconut Prawns - jumbo prawns, golden fried in coconut breading and served with<br />
spiced orange marmalade. Diners seeking non-seafood dishes can select from steak, chicken, pasta, burgers and<br />
sandwiches. A full line of beer, wine and spirits is listed. Entrée prices range from $7.29–$29.99. Checks average $24.<br />
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published.<br />
425
<strong>Menu</strong> Development |<br />
McGrath’s Fish House introduced a new lunch special: Cajun Shrimp Fettuccine. The pasta features Bay Shrimp and<br />
fettuccine, mushrooms and green onions in a Spicy Cajun Cream Sauce topped with fresh Parmesan cheese. The item is<br />
priced at $6.99 and is served with sourdough bread and a garden salad. (Company Release 3/26/07)<br />
McGrath’s Fish House added a Crab & Prawns meal for $12.99. The special includes snow crab legs as well as coconut, beerbattered<br />
and wood-fired prawns. The dish is served with potatoes, a garden salad and sourdough bread. (Company Website)<br />
Personnel |<br />
Ruth Kelly, Controller<br />
Crista Oswald, Director of Marketing<br />
Jim Marshall, Director of Operations<br />
John McGrath, President<br />
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published.<br />
426
Melting Pot<br />
Headquarters<br />
8810 Twin Lakes Blvd., Tampa, Florida 33614 USA<br />
Tel: (813)881-0055 Fax: (813)889-9361<br />
www.meltingpot.com<br />
Ownership: Private<br />
Segment: Full Service Other<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 191,500 163,000 129,000<br />
Company-owned ($000) 9,500 5,800 5,500<br />
Franchised ($000) 182,000 157,200 123,500<br />
U.S. Number of Units 106 101 85<br />
Company-owned 6 4 4<br />
Franchised 100 97 81<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,850 1,785 1,685<br />
Concept Positioning |<br />
The Melting Pot is a full-service fondue restaurant that offers a polished-casual experience with attentive servers (who staff<br />
only two or three tables at a time) as well as multi-course meals and an adherence to quality. The privately held chain<br />
operates 106 units across the U.S., only six of which are company-owned.<br />
Units are freestanding and seat 155–180. The décor is contemporary and intimate.<br />
Started in 1975 in Maitland, FL, the Melting Pot survived the decline of interest in fondue in the late 1970s and early 1980s. In<br />
1986, brothers Mark and Bob Johnston acquired the company. Though The Melting Pot was a relatively simple concept when<br />
it opened—its menu consisted of three items—the Johnstons repositioned the restaurant into a more upscale concept with<br />
more to offer customers in terms of menu selection and entertainment. Its current growth is being achieved through<br />
franchising.<br />
<strong>Menu</strong> Positioning |<br />
The Melting Pot serves dinner, only, offering a decadent menu served in a high-end atmosphere. The menu is divided into four<br />
categories—cheese fondue, salads, entrées and desserts. Signature item is the fondue—available in a variety of combinations<br />
of sauces, meats, breads and desserts. Fondues include traditional cheese, Gorgonzola, Emmenthaler Swiss garlic Dijon<br />
butter, Thai peanut,. Entrées include Teriyaki Sirloin, Breast of Chicken, Shrimp and Sirloin, Twin Lobster Tails, The<br />
Vegetarian and Seafood Trio. Desserts include chocolate fondues with a choice of strawberries, bananas, pineapple,<br />
cheesecake, nutty marshmallows, pound cake and brownies, to be dipped in a choice of eight chocolate fondues. Full liquor<br />
service is available. <strong>Menu</strong> prices range from $19–$88. Checks average $21.<br />
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published.<br />
427
Promotion Plans |<br />
The Melting Pot is offering a “students eat free” promotion. Students, when accompanied by an adult purchasing a four-course<br />
meal, can receive a free meal from a special selection. The offer is not available on Saturdays. The promotion runs through<br />
September 15. (Company Website 8/17/07)<br />
International Activities |<br />
The Melting Pot Restaurants Inc., will offer franchises in Canada as part of its first international expansion efforts. The<br />
provinces of Ontario and British Columbia will be the first locations for the franchised units because of their population density,<br />
high average incomes, culture and proximity to the U.S. The company has a long-term goal of 12–15 Canadian units. The<br />
Melting Pot, based in Tampa, FL, operates more than 120 restaurants in the U.S. and has more than 45 locations in<br />
development. (Restaurants & Institutions Online 10/8/07)<br />
Personnel |<br />
Mark Johnston, CEO<br />
Scott Pierce, CFO<br />
Bob Johnston, COO<br />
Kendra Sartor, V.P. of Marketing<br />
Lee Schaibly, Manager of Culinary Development<br />
News & Other |<br />
Melting Pot Restaurants Inc. will debut a kiosk-style concept called Dip at a shopping center in Tampa, FL, in September. The<br />
first kiosk unit will open in the Citrus Park Town Center. The chain plans to expand the concept to Clearwater and Brandon,<br />
FL. (Nrn.com 8/20/07)<br />
Dip is a new brand offshoot from The Melting Pot Restaurants Inc. Scheduled to open this month in Tampa’s Citrus Park Town<br />
Center shopping mall, Dip is a kiosk-style model of the 120-unit fondue chain. Its menu will include both made-to-order and<br />
pre-dipped chocolate creations, ranging from dipped strawberries and bananas to pretzels, Rice Krispies Treats and biscotti.<br />
The Melting Pot is developing Dip as a more approachable way to introduce new customers to fondue. (TBO.com 8/3/07;<br />
Nation’s Restaurant News 8/13/07)<br />
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published.<br />
428
Mimi's Cafe<br />
Headquarters<br />
17852 E. 17 St. South Building Suite 108, Tustin, California 92780 USA<br />
Tel: (714)544-4826 Fax: (714)544-7663<br />
www.mimiscafe.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 355,000 316,000 280,000<br />
Company-owned ($000) 355,000 316,000 280,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 108 96 85<br />
Company-owned 108 96 85<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,475 3,425 3,400<br />
Concept Positioning |<br />
Mimi’s Café is a casual-dining chain of family-oriented restaurants styled after the cafes of Paris and New Orleans. Open for<br />
breakfast, lunch and dinner, its largest daypart is dinner, which accounts for nearly half its total volume. Bob Evans is the<br />
owner and operator of Mimi’s Café’s 81 units.<br />
All freestanding Mimi’s units average 6,500 sq. ft. with seating for approximately 200–225 guests. Takeout service is offered. A<br />
lively ambiance is created with striped awnings, brass and iron artifacts, bright curtains, checkered tablecloths and tiles, and<br />
used brick. Over the past decade, the company has undertaken a remodeling program to update its look and broaden its<br />
appeal. Units with the newer prototype have antique stone floors, brick walls and beamed ceilings. In addition, the heavy use<br />
of pastel color schemes in the dining rooms has been changed to earth tones with primary color accents. Interior remodeling<br />
has increased sales by 10-15%. Mimi's Café targets only cities and sites that fit its customers’ demographics of 35–64-year-old<br />
couples in suburban surroundings. A recent expansion push has shifted advertising away from its previous female-customer<br />
focus to a broader consumer base.<br />
The first Mimi's opened in Anaheim, CA, in 1978. Co-founder Arthur Simms named the chain after a woman he met and fell in<br />
love with during World War II, a French girl named Mimi. Simms and his son Tom, along with partners Paul Kurz and Brian<br />
Taylor, developed the concept and modeled it after the French Quarter in New Orleans. In 1994, the chain brought on an<br />
equity partner in order to grow without franchising. Since its initial expansion plans in 1994, Mimi's has experienced 20%<br />
growth each year. In June 2004, Bob Evans completed an acquisition of SWH Corp., Mimi's parent company. Bob Evans<br />
purchased the chain for $182 million. The company has not disclosed future expansion plans.<br />
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429
<strong>Menu</strong> Positioning |<br />
Mimi's Café offers a broad menu featuring breakfast, appetizers, soups and chili, pasta, salads, sandwiches, hamburgers,<br />
tacos and wraps, fish, desserts and beverages. Specialty menu items include Pan Seared Chicken Fettuccine, Albacore &<br />
Avocado, Thai Chicken Wrap and Tender Pork Shank. A low-fat menu features 11 breakfast, lunch and dinner items including<br />
omelets, sandwiches, chicken and pasta dishes. Signature desserts include New Orleans Bread Pudding served warm with<br />
whiskey sauce and whipped cream and Café Maui Pie served with a slab of vanilla ice cream between two layers of rich<br />
chocolate cake drizzled with hot fudge and whipped cream. Alcoholic beverages are available for purchase. <strong>Menu</strong> prices<br />
range from $2.99–$15.99 and checks average $9.50.<br />
Expansion Plans |<br />
Mimi’s Café will open its second North Carolina restaurant in Raleigh on March 22. (Company Release 3/12/07)<br />
Mimi’s Café opened its first restaurant in Austin, TX, on April 19. This marks the sixth outlet in Texas and 111 units total.<br />
(Company Release 4/10/07)<br />
Mimi’s Café opened new locations in Orland Park, IL, Fredericksburg and Sterling, VA, and Columbia, MD. The Orland Park<br />
location is the chain’s first location in Illinois. (Company Website, Careerbuilder.com 7/20/07)<br />
Mimi’s Café opened a location in Sterling, VA, on October 4. The unit is the first Mimi’s Café to open in the Washington DC,<br />
area. (Company Release 10/1/07)<br />
Mimi’s Café plans to open its 118th restaurant on October 25 in Columbia, MD. The unit will feature seating for more than 200<br />
guests in multiple dining rooms, each with a different feel. (Company Release 10/10/07)<br />
<strong>Menu</strong> Development |<br />
Mimi’s Café is adding two new breakfast items to its menu through mid-January. New options are the Pumpkin Pancake<br />
Breakfast, four pancakes topped with caramel cinnamon apples and served with eggs and bacon or sausage, and Diablo Pork<br />
Chop & Eggs, with a center-cut pork chop and potato cakes, topped with poached eggs and a roasted tomatillo sauce. (NRN<br />
Daily NewsFax 10/19/06)<br />
Mimi’s Café added five new items to its lunch and dinner menu. New choices are Golden Fried Calamari, Pan-Seared Scallops<br />
and Butternut Squash Ravioli, Spice-Rubbed Baby Back Ribs, Center Cut Swordfish and Pineapple Upside Down Cake. (NRN<br />
Daily NewsFax 10/19/06)<br />
Mimi’s Café introduced five new menu items on February 15. The items include Seafood Appetizer Combo, Center-Cut<br />
Swordfish, Seafood Sampler and Pan Seared Scallops. All items range in price from $9.99 to $14.99 and are available from<br />
February 15 through May 14. (Company Release 2/15/07)<br />
Mimi’s Café introduced its new all-inclusive kids menu offering healthy options and traditional favorites. The menu features<br />
Mimi Mouse Pancakes, Chocolate Chip Pancakes, Scrambled Eggs & Bacon, Turkey Dinner, Soup and Salad, Spaghetti,<br />
Chicken Fingers, Mini Corn Dogs, Grilled Cheese, Mac & Cheese, Mimi Burger, PB&J Soldiers and Pepperoni Pizzadillas.<br />
Items are priced from $3.99–$4.59. (Company Release 2/26/07)<br />
Mimi’s Café added several new seafood dishes after a recent customer survey showed that guests were looking for more<br />
seafood items. New selections include: • Seafood Appetizer Combo–golden-fried seafood including crab hush puppies,<br />
calamari and coconut shrimp, paired with citrus rémoulade, sweet & sour and tartar sauces • Pan Seared Scallops (Small<br />
Bite)–pan-seared sea scallops with garlic-sautéed mushrooms, sundried tomatoes and spinach over fettuccine, tossed in a<br />
tomato cream sauce • Seafood Sampler–crispy cod fillets, four coconut shrimp and lump and blue crab cake, served with sides<br />
of french fries and coleslaw • Center-Cut Swordfish or Mahi Mahi–either pan-grilled or blackened with Cajun spices, served<br />
with a side of seasonal vegetables, a choice of potato and either Citrus Artichoke Cream sauce or Lemon Caper Butter sauce.<br />
(Company Release 2/15/07)<br />
Mimi’s Café is offering a variety of new items for breakfast, lunch and dinner for a limited time. New selections include Seafood<br />
Appetizer Combo, Pan Seared Scallops, Seafood Sampler, Tender Pork Shank and Swordfish or Mahi Mahi. (Company<br />
Release 3/27/07)<br />
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430
Mimi’s Café rolled out several new farmers' market-inspired menu items. The dishes are priced from $7.99–$14.99. New<br />
selections include: • Fresh Asparagus & Potato Cake Benedict—crispy potato cakes finished with poached eggs, broiled fresh<br />
asparagus and hollandaise sauce paired with fresh strawberries and melon • Fresh Asparagus Omelette—a fluffy egg<br />
omelette with diced fresh asparagus, tomatoes and onions and covered with Jack cheese, broiled asparagus spears and<br />
tomato cream paired with red skin potatoes and a muffin • Citrus Broiled Shrimp & Asparagus—grilled shrimp and fresh<br />
asparagus topped with creamy basil pesto over baby greens and fresh strawberries, tossed in a balsamic vinaigrette dressing<br />
• Greek Lemon Chicken Salad—broiled lemon-oregano chicken breast, feta cheese, diced tomatoes, cucumbers, artichoke<br />
hearts and kalamata olives in a Greek vinaigrette dressing • Tender Lamb Shank—braised shank in red wine with garlic and<br />
herbs, paired with mashed potatoes and pan vegetables • Seared Scallops & Asparagus Ravioli—jumbo scallops and citrusgarlic<br />
broiled fresh asparagus over mozzarella and asparagus ravioli, tossed in a light basil cream • Mahi-Mahi—pan-grilled or<br />
blackened with Cajun spices, paired with seasonal vegetables, choice of potato and either asparagus tomato cream sauce or<br />
lemon caper butter • Boneless Idaho Trout—pan griddled or blackened with Cajun spices paired with seasonal vegetables,<br />
choice of potato and either asparagus tomato cream or lemon caper butter sauce • Lemon Cake & Mixed Berries a la Mode—<br />
moist lemon cake finished with raspberry puree, blueberries, fresh strawberries and vanilla ice cream. (Company Release<br />
5/03/07)<br />
Mimi’s Café debuted a Seasonal Features menu for the summer. Offerings include: • Citrus Broiled Shrimp & Fresh<br />
Asparagus—grilled shrimp and fresh asparagus topped with creamy basil pesto and paired with baby greens and fresh<br />
strawberries tossed in a balsamic vinaigrette ($8.99) • Greek Lemon Chicken Salad—broiled lemon oregano chicken breast,<br />
feta cheese, diced tomatoes, cucumbers, artichoke hearts and kalamata olives tossed in a Greek vinaigrette dressing ($9.29) •<br />
Tender Lamb Shank—braised with red wine, garlic and herbs and paired with mashed potatoes and pan vegetables ($13.99) •<br />
Seared Scallops with Asparagus Ravioli—seared jumbo scallops and citrus-broiled fresh asparagus over mozzarella and<br />
asparagus ravioli, tossed in a light basil sauce ($13.99) • Mahi-Mahi or Boneless Idaho Trout—pan griddled or blackened with<br />
Cajun spices and paired with seasonal vegetables, choice of potato and one of two sauces, Asparagus Tomato Cream or<br />
Lemon Caper Butter ($14.99) • Fresh Asparagus & Potato Cake Benedict—crispy potato cakes topped with poached eggs,<br />
broiled asparagus and hollandaise sauce paired with a side of fresh strawberries and melon ($8.29) • Fresh Asparagus<br />
Omelette—three-egg omelet with diced tomatoes, asparagus and onions, topped with Jack cheese, broiled asparagus spears<br />
and tomato cream and paired with red skin potatoes and a baked muffin ($8.29) • Lemon Cake & Mixed Berries a la Mode—<br />
moist lemon cake with raspberry purée, blueberries, fresh strawberries and vanilla ice cream ($4.99) (Company Website)<br />
Mimi’s Café introduced nine new dishes to its menu. The new line features entrées such as Spice Rubbed Baby Back Ribs,<br />
Pesto Shrimp with Tomato Mozzarella Ravioli, Crab, Sweet Corn & Asparagus Quiche and Blueberry Pancake Breakfast. The<br />
entrées range from $6.19–$14.99 and are available from July 12–September 19. (Company Release 7/12/07)<br />
Mimi’s Café introduced several seasonal entrées for summer. These include: • Stuffed BBQ Chicken Quesadilla—with green<br />
onions, cilantro and melted Jack and Cheddar cheeses, stuffed between flour tortillas, topped with honey-lime sour cream and<br />
served with BBQ sauce and ranch slaw • Crab, Sweet Corn and Asparagus Quiche—lump crab, sweet corn, asparagus and<br />
Parmesan and feta cheeses paired with green salad, seasonal fruit and a baked muffin • Zesty BBQ Port Ciabatta—toasted<br />
ciabatta bread topped with hand-pulled pork, grilled red onions and pickles with a side of french fries or coleslaw • Pesto<br />
Shrimp and Tomato Mozzarella Ravioli—broiled pesto shrimp and grilled citrus asparagus over fresh tomato mozzarella,<br />
tossed in a basil pesto sauce and finished with diced tomatoes • Spice Rubbed Baby Back Ribs (Full or Half Rack)—slowcooked,<br />
topped with BBQ sauce and paired with french fries and coleslaw • Boneless Idaho Trout—pan-grilled or blackened<br />
with Cajun spices, served with lemon-caper butter, fresh vegetables and choice of potato • Macadamia Nut-Crusted Mahi<br />
Mahi—available with macadamia nuts or simply grilled, served with orange-parsley butter, fresh vegetables and choice of<br />
potato (Company Website)<br />
Mimi’s Café added seasonal breakfast and dinner dishes and a new dessert highlighting Flavors of Napa’s Wine Country. The<br />
new breakfast items are Pumpkin Pancake Breakfast, four pumpkin pancakes topped with caramel cinnamon apples and<br />
served with two eggs and a choice of bacon or sausage, and The “Best” Breakfast Ciabatta, with bacon, ham, eggs, spinach,<br />
tomato and remoulade on toasted ciabatta. Mimi’s dessert addition is an Autumn Peach Upside Down Cake, featuring<br />
caramelized autumn peaches on white cake, served a la mode and drizzled with caramel sauce. Wine Country dinner<br />
selections include: • Butter Broiled Lobster Mac & Cheese—lemon-garlic slipper tail lobster on Asiago & Cheddar macaroni<br />
with citrus-broiled asparagus • Pan-Seared Scallops & Butternut Squash Ravioli—jumbo scallops served on roasted butternut<br />
squash ravioli, tossed with tomatoes, garlic mushrooms and roasted-tomato cream sauce • Wine Country Beef Short Ribs—<br />
simmered in red wine and garlic and served with pan vegetables and mashed potatoes • Chicken Piccata with Asparagus—<br />
broiled chicken breast smothered with garlic mushrooms and lemon capers • Macadamia-Crusted Mahi Mahi—served with<br />
fresh vegetables and a choice of baby bakers or mashed potatoes • Center Cut Swordfish—pan griddled or blackened with<br />
Cajun spices, served with fresh vegetables, artichoke and avocado salsa and a choice of baby bakers or mashed potatoes<br />
(Yahoo! Finance 9/20/07; Company Website)<br />
Mimi’s Café is featuring 10 new entrées through December 6. The dishes include Pumpkin Pancakes, Wine Country Beef<br />
Short Ribs and Autumn Peach Upside Down Cake. (Company Release 10/1/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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431
Personnel |<br />
Adam Baird, Executive Chef<br />
Ira M. Fils, V.P. of Finance<br />
Rick Seegmiller, V.P. of Purchasing<br />
Dan Dillen, COO<br />
Tim Pulido, President<br />
Lowell Petrie, V.P. of Marketing<br />
Mimi’s Café President and Chief Executive Russ Bendel has resigned, effective at the end of August. Daniel Dillon will act as<br />
Chief Executive until a replacement is found. (NRN Daily NewsFax 8/7/07)<br />
Bob Evans Farms Inc. named Tim Pulido as president of the company’s Mimi’s Café, effective December 3. Pulido most<br />
recently served as CEO of the Shakey’s USA pizza chain. He replaces interim CEO Dan Dillon, who will retain his position as<br />
chief operating officer for Mimi’s. (Yahoo! Finance 11/13/07)<br />
News & Other |<br />
Mimi’s Café reported October same-store sales increased 2.2%. (Company Release 11/7/06)<br />
Mimi’s Café reported December same-store sales increased 2.7%. (Company Release 1/9/07)<br />
Mimi’s Café reported January same-store sales increased 2.8%. (Company Release 2/6/07)<br />
Bob Evans Farms Inc. reported February same-store sales declined 0.7% at Bob Evans and increased 2.6% at Mimi’s Café.<br />
(NRN Daily NewsFax 3/12/07)<br />
Bob Evans Farms Inc. reported March same-store sales increased 1.2% at Bob Evans and declined 0.2% at Mimi’s Café.<br />
(Company Release 4/3/07)<br />
Bob Evans Farms Inc. reported April same-store sales increased 2.1% at Bob Evans restaurants and 1.3% at Mimi’s Café.<br />
Growth in same-store sales was attributed to increased average menu prices. <strong>Menu</strong> prices rose 1.9% at Bob Evans and 5% at<br />
Mimi’s Café. (Company Release 5/8/07)<br />
Bob Evans Farms Inc. reported August same-store sales at Bob Evans increased 4.3% over year-before figures while sales at<br />
Mimi’s Café declined 1.9%. Average menu prices at Bob Evans and Mimi’s Café increased approximately 2.6% and 3.9%,<br />
respectively. (Company Release 9/4/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
432
Moe's Southwest Grill<br />
Headquarters<br />
200 Glenridge Point Parkway Suite 200, Atlanta, Georgia 30342 USA<br />
Tel: (404)255-3250 Fax: (404)255-4978<br />
www.moes.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 273,000 206,000 124,000<br />
Company-owned ($000) 1,000 1,000 1,300<br />
Franchised ($000) 272,000 205,000 122,700<br />
U.S. Number of Units 342 280 200<br />
Company-owned 1 1 1<br />
Franchised 341 279 199<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 900 900 900<br />
Concept Positioning |<br />
Moe’s Southwest Grill is a limited-service Mexican concept. The chain is owned by FOCUS Brands Inc. and operates 345<br />
units across the U.S., one of which is company-owned.<br />
The company looks for freestanding sites and food court and shopping center locations. Units average 2,100 sq. ft. with<br />
seating for approximately 60–80 guests. Hardwood floors and subtle yellows, pinks and purples as well as soft rock music<br />
playing in the background create an upbeat and inviting atmosphere. The concept’s layout follows the “build-your-own burrito”<br />
methodology, with customers placing their orders at a counter and following the creation of their burrito or taco as they<br />
progress through a cafeteria-style line.<br />
Moe’s Southwest Grill first opened in 2000 in Buckhead, GA, by Raving Brands founder Martin Sprock. Moe's has recently<br />
singed agreements with franchisors to launch more than 600 new units nationwide. In 2007, Raving Brands announced the<br />
sale of Moe's to private equity firm Roark Capital Group's subsidiary, FOCUS Brands Inc. Terms of the sale, which will be<br />
completed in 2007, have not been disclosed. Moe's joins Schlotzsky's, Carvel Ice Cream, Cinnabon and Seattle's Best Coffee<br />
International in FOCUS' portfolio of concepts.<br />
<strong>Menu</strong> Positioning |<br />
Moe's Southwest Grill is open for lunch and dinner and offers traditional southwestern and Mexican fare such as burritos,<br />
tacos, quesadillas, nachos and fajitas, as well as appetizers, salads, sides and beverages. Its signature item is the burrito, with<br />
protein options of steak, chicken, ground beef, fish or tofu. <strong>Menu</strong> items have quirky names that pay homage to TV shows such<br />
as Friends and Seinfeld, and movies like Eddie Murphy's remake of the Nutty Professor. Popular menu items include Art<br />
Vandalay (burrito)—rice, beans, shredded cheese, salsa, sour cream, guacamole and lettuce; I Said Posse (quesadillas)—<br />
shredded cheese, beans, sautéed vegetables, side of salsa and sour cream; Ruprict (nachos)—beans, melted cheese, salsa,<br />
jalapeños and black olives; and the Alfredo Garcia (fajitas)— choice of chicken, steak or tofu with lettuce, salsa and shredded<br />
cheese. All burritos and tacos come with a choice of black or pinto beans and grilled chicken, steak or tofu, and tacos are<br />
available with hard or soft shells. Dishes come with crispy tortilla chips on the side. Alcoholic beverages include beer and<br />
“Moe-Ritas” (margaritas). Kids, takeout and catering menus are available. <strong>Menu</strong> prices range from $2.39–$7.99. Checks<br />
average $6.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
433
Expansion Plans |<br />
Moe’s Southwest Grill plans to open 20 restaurants in the Detroit area. The company opened its most recent unit in the Detroit<br />
suburb of Royal Oak and currently operates seven locations in the state. Moe’s Southwest has more than 350 restaurants<br />
nationwide. (Detroit News 10/18/06)<br />
<strong>Menu</strong> Development |<br />
Moe’s Southwest Grill is testing a trans-fat-free menu in 50 units nationwide. The chain is planning to roll out the menu to its<br />
334 restaurants by summer. (Tampa Bay Business Journal 1/09/07)<br />
Franchise Activity |<br />
Raving Brands entered into a store development deal with Canadian partner True North Brands Inc calling for 40 Moe’s<br />
Southwest Grill locations. The deal marks the first partnership for the chain with the area developer.<br />
(Restaurantnewsresource.com 8/22/07)<br />
International Activities |<br />
Raving Brands is looking to open international locations of some of its brands. The company expects to debut restaurants in<br />
Singapore as well as in Ontario, Canada, and the Middle Eastern countries of Bahrain, Egypt, Kuwait and Saudi Arabia. The<br />
breakdown of restaurants is 40 Moe’s Southwest Grills in Ontario; 10 Doc Green’s Salads & Grills in Singapore; and 115<br />
restaurants in the Middle East. The first Doc Green’s outlet in Singapore opened earlier this year. The brands that are slated to<br />
open in the Middle East will be chosen by A.A. Turki Corp., Raving Brands’ regional partner. (AJC.com 3/11/07; Foodservice<br />
Equipment & Supplies 3/14/07)<br />
Technology |<br />
Moe’s Southwest Grill will receive a Java-based web application to give a real-time view of performance in certain units. This<br />
will allow the company to monitor and reduce food costs and manage ordering, inventory, prep and pull, receiving and waste<br />
effectively. Altametircs e*Restaurant Food Management Solution is implementing the application. (Franchise Times p 74<br />
4/24/07)<br />
Personnel |<br />
Daryl Dollinger, Executive VP Purchasing<br />
Stephen M. LaMastra, COO/President<br />
Tom Hermann, V.P. of Finance<br />
Martin Sprock, CEO<br />
Daniel Barash, Director of New Product Development<br />
News & Other |<br />
Raving Brands Inc. is being sued by 40 Mama Fu’s Asian House franchisees and investors. The group alleges that Raving<br />
Brands failed to provide the franchisees with the support, training and advertising required by their franchise agreements. The<br />
franchisees are located in five Southern states and California. Many of them are planning to close their Mama Fu’s locations in<br />
2007. A similar lawsuit was filed against Raving Brands earlier this year by a Moe’s Southwest Grill and Mama Fu’s<br />
franchisee. (Atlanta Business Chronicle 12/08/06)<br />
Raving Brands is selling its Moe’s Southwest Grill chain to FOCUS Brands for an undisclosed amount. FOCUS is the operator<br />
and franchisor of over 1,750 outlets of the Carvel, Cinnabon and Schlotzky’s brands in the U.S., Puerto Rico and 33 foreign<br />
countries. There are over 345 Moe’s locations in 36 states. (Company Release 4/11/07; NRN Daily NewsFax 4/12/07; The<br />
Atlanta Journal-Constitution 4/12/07; Pacific Business News 4/11/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
434
Raving Brands is being sued by three former Moe’s Southwest Grill franchisees in Southern California. The franchisees are<br />
seeking $3.9 million in punitive and compensatory damages for alleged fraud, violations of state franchise investment laws and<br />
unlawful trade practices. Last year, the multi-concept company was sued for alleged misrepresentation and breach of contract<br />
by over 40 Mama Fu’s Noodle House franchisees in six states. (NRN Daily NewsFax 3/22/07)<br />
Focus Brands has completed its purchase of franchising rights to Moe’s Southwest Grill. The company acquired the rights<br />
from Raving Brands. Moe’s, a franchisor of 360 burrito restaurants in 34 states, was Raving Brands’ flagship concept. This<br />
contract makes Focus Brands the operator and franchisor of more than 10,000 outlets in 50 states and 32 countries. Other<br />
Focus Brands include Schlotzsky’s, Carvel and Cinnabon. Both Focus Brands and Raving Brands are based in Atlanta. (NRN<br />
Daily NewsFax 8/31/07; Yahoo! Finance 8/30/07)<br />
Moe’s Southwest Grill and former parent Raving Brands are being sued by more than 50 franchisees and their financial<br />
backers over allegations of fraud and breach of contract. The lawsuit, filed last week in federal court in Atlanta, makes many of<br />
the same claims franchisees made in a March lawsuit against the company. No trial date has been set. FOCUS Brands Inc.<br />
purchased the Moe’s concept from Raving Brands in September of this year. (Fastcasual.com 11/29/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
435
Morton's The Steakhouse<br />
Headquarters<br />
350 W. Hubbard St. Suite 610, Chicago, Illinois 60610 USA<br />
Tel: (312)923-0030 Fax: (312)923-0090<br />
www.mortons.com<br />
Ownership: Public<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 290,000 266,573 248,921<br />
Company-owned ($000) 290,000 266,573 248,921<br />
Franchised ($000) - - -<br />
U.S. Number of Units 69 65 61<br />
Company-owned 69 65 61<br />
Franchised - - -<br />
International Sales ($000) 15,000 15,191 12,739<br />
International Units 4 4 4<br />
Average Sales/Unit ($000) 4,275 4,100 4,000<br />
Concept Positioning |<br />
Morton's the Steakhouse is a full-service, upscale steakhouse. The chain is owned by Morton’s Restaurant Group Inc., which<br />
operates 74 units throughout the U.S. as well as in Toronto and Vancouver , Canada, and Hong Kong and Singapore in Asia.<br />
All units are company-owned.<br />
Morton’s restaurants are mostly located in retail, commercial and office complexes; seven are freestanding units. All are<br />
located in major metropolitan markets. The restaurants average 4,275 sq. ft. and most units have "Boardrooms," private dining<br />
rooms for special events or meetings. The décor features dark wooden interiors, stained glass, exhibition kitchens, Leroy<br />
Neiman serigraphs and Morton’s wall of black-and-white photos of celebrities. Units also feature large bar areas.<br />
Morton’s the Steakhouse was opened in 1978 in the Near North Side of Chicago by Arnie Morton. Morton’s Restaurant Group,<br />
organized by Allen J. Bernstein and others, acquired the operation in 1989 and the current corporate name was adopted in<br />
1996. Morton's Restaurant Group is owned by a private equity firm, Castle Harlan. In 2006, Morton's Restaurant Group moved<br />
its headquarters back to Chicago from New York after going public. Morton's has announced its intent to aggressively expand<br />
nationwide, with 75 new U.S. locations in the works, beginning in 2007. The company is also planning to open an<br />
undetermined number of new sites throughout Asia. Morton's Restaurant Group also operates four moderately priced<br />
Bertolini's Authentic Trattorias<br />
<strong>Menu</strong> Positioning |<br />
Morton’s the Steakhouse is open for lunch and dinner. Its menu features traditional steakhouse offerings featuring prime aged<br />
beef, including 24-oz. porterhouse, 20-oz. New York sirloin, 16-oz. ribeye and 14-oz. filet mignon. The chain's largest steak—<br />
the double porterhouse— weighs in at 48 oz. Accompanying the steaks are sauces include béarnaise, beurre blanc,<br />
hollandaise and sabayon. Also featured are fresh fish, lobster, chicken and veal. Other specialties include Tenderloin<br />
Medallions al Forno and Chicken Christopher—sautéed chicken breast dusted with garlic and shallot bread crumbs. The lunch<br />
menu includes a variety of appetizers, such as broiled sea scallops wrapped in bacon, sautéed wild mushrooms and soup of<br />
the day, along with salads, entrée salads and sandwiches. Full liquor service is available. The wine list showcases 175<br />
premium selections. Entrées range from $14–$46. Checks average $88.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
436
Expansion Plans |<br />
Pink Taco is expecting to add one to two units a year and eventually have 150 restaurants. The chain, which was created by<br />
the family behind Morton’s and the Hard Rock Café, currently operates two units and another is set to open in Los Angeles in<br />
March 2007 at the Westfield Century City mall. Pink Taco is about 8,000-sq.ft. and seats 270 customers in an urban setting<br />
that features high-volume music and a graffiti-style take on Mexico. (Nation’s Restaurant News Online 12/11/06)<br />
Morton’s The Steakhouse plans to open a new restaurant in Annapolis, MD, this fall. The unit is slated to open in Park Place.<br />
(Company Release 1/3/07)<br />
Morton’s Restaurant Group’s Italian restaurant, Trevi, opened in Las Vegas on February 2. The restaurant is located in The<br />
Forum Shops and Caesars Palace. Formerly, Trevi was Bertolini’s Authentic Trattoria. (Company Release 2/5/07)<br />
Morton’s The Steakhouse will open a new unit in the Boston Seaport District in the first quarter of 2008. The restaurant will be<br />
located in the Seaport World Trade Center East Building. (Company Release 3/29/07)<br />
Morton’s The Steakhouse plans to open a unit in Naperville, IL, in 2008. The restaurant will be located in Freedom Commons,<br />
a new development at the intersection of Freedom Boulevard and I-88. (Company Release 4/9/07)<br />
Morton’s Steakhouse will open a new restaurant in Leawood, KS, a Johnson county suburb of Kansas City. The restaurant will<br />
be located at Park Place, the middle of the Leawood commercial district and will open in the second half of 2008. (Company<br />
Release 7/9/07)<br />
Morton’s Restaurant Group has signed leases to open locations in Annapolis, MD; Cincinnati; Coral Gables, FL; Naperville, IL;<br />
Woodland Hills, CA; and Macau, China. At least six steakhouses are planned to open by December. The fine-dining chain has<br />
74 restaurants in 28 states as well as international locations in Puerto Rico, Canada, Hong Kong and Singapore. (Foodservice<br />
Equipment Reports 6/07 p25)<br />
<strong>Menu</strong> Development |<br />
Morton’s will offer a Steak and Seafood for Two dinner for $99 for a limited time. The offer includes two single-cut filets, plus a<br />
choice of sides, including Colossal Shrimp Alexander, Jumbo Lump Crab Cake, Broiled Sea Scallops, Caesar Salad, Morton’s<br />
Salad, Signature Potato and Fresh Vegetables. Desserts include Morton’s Legendary Hot Chocolate Cake or Key Lime Pie.<br />
(Company Website)<br />
Personnel |<br />
Thomas Baldwin, CEO/President<br />
Jim Kirkpatrick, S.V.P. of Development<br />
Kevin Weinert, S.V.P. of Operations<br />
Ronald DiNella, CFO<br />
Peggy Reilly, V.P. of Purchasing<br />
Patty Pleuss, V.P. of Marketing<br />
Morton’s Restaurant Group Inc. hired Scott D. Levin as senior vice president, general counsel and corporate secretary.<br />
Previously, Levin served as senior vice president, human resources and general counsel for Torex Retail Americas. (Company<br />
Release 10/15/07)<br />
Morton’s Restaurant Group Inc. has elected William C. Anton to its Board of Directors. Anton is the founder of Anton Airfood<br />
Inc. and chairman of the Board of Trustees of the Culinary Institute of America. (Morton’s Press Release 10/30/07)<br />
News & Other |<br />
Morton’s Restaurant Group Inc. reported for the third quarter a net loss of $0.1 million from a loss of $0.7 million for the same<br />
period last year. Revenues increased 6.4% to $231.1 million. Same-store sales grew 3.3%. (Company Release 10/26/06)<br />
Westin Hotel in Annapolis, MD, is opening Morton’s The Steakhouse this fall. Morton’s has 73 restaurants worldwide.<br />
(Foodservice Equipment & Supplies Online 1/10/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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437
Morton’s Restaurant Group Inc. reported for the fourth quarter ended December 31, net earnings increased to $5.6 million<br />
from a loss of $3.8 million for the same period last year. Revenues grew 8.7% to $90.9 million from $83.6 million. Same-store<br />
sales rose 6.4%. For the year ended December 31, the company reported a net loss of $13.6 million from a loss of $4.2 million<br />
for the same period last year. Revenues increased 7.1% to $322 million from $301 million. Same-store sales rose 4.1%.<br />
(Company Release 2/26/07)<br />
Morton’s Restaurant Group Inc. reported for the first quarter ended April 1 net earnings were $5 million compared to a net loss<br />
of $21.6 million for the same period last year. Revenues increased 7% to $88.9 million from $83.1 million. Same-store sales<br />
grew 0.4%. (Company Release 4/25/07)<br />
Morton’s in Hollywood, CA, is closing its doors at the end of this year. The restaurant opened in 1979 and was known as a<br />
place where Hollywood power players made business deals. The space will be converted into Soho House West Hollywood, a<br />
members-only social club with outposts in New York City and London. (Los Angeles Times 5/12/07)<br />
Morton’s Restaurant Group Inc. is seeing positive second-quarter sales after sluggish first-quarter sales, attributed to bad<br />
weather. Sales for the second quarter grew 7%. Shares rose 7.5% to $17.40. (Associated Press 6/26/07)<br />
Morton’s of Chicago steakhouse chain is threatening to sue Morton’s Pub and Grub in Muncie, IN, for infringing on its name. In<br />
a letter from attorneys, the 75-unit fine-dining steakhouse is concerned about the public mistaking the 40-seat Morton’s Pub<br />
and Grub for its brand. The pub owners do not intend to change the restaurant’s name. (NRN Daily NewsFax 10/16/07)<br />
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published.<br />
438
Mr. Gatti's<br />
Headquarters<br />
5912 Balcones Dr. Suite 200, Austin, Texas 78731 USA<br />
Tel: (512)459-4796 Fax: (512)454-4990<br />
www.mrgattis.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 149,600 146,100 100,000<br />
Company-owned ($000) 30,100 27,100 20,000<br />
Franchised ($000) 119,500 119,000 80,000<br />
U.S. Number of Units 140 148 150<br />
Company-owned 22 25 30<br />
Franchised 118 123 120<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,368 1,084 610<br />
Concept Positioning |<br />
Mr. Gatti's pizza restaurants are family-oriented, self-service operations open for lunch and dinner. The pizzas use 100% real<br />
smoked provolone cheese and a special pizza sauce concentrate, made by suppliers to the specifications of Mr. Gatti's. A<br />
proprietary crust recipe is prepared fresh daily in all units. The primary customer base is large group, young adults and families<br />
with children. Mr. Gatti’s LP operates and franchises its units under parent company, Blue Sage Capital. Mr. Gatti’s is 100%<br />
franchised.<br />
Mr. Gatti’s units are large and range from 3,200–25,000 sq. ft., with a seating capacity averaging 120–500 people. Interiors<br />
feature a family dining area containing a large screen TV, a Garden room for quiet adult dining and a Good Times room with<br />
large screen TV for special events and group functions. Some 25% include "GattiTown," a family-oriented entertainment<br />
center that averages 18,000–40,000 sq. ft. GattiTown appeals to families by featuring video games, virtual adventures, and<br />
rides for small children. Larger units have additional rooms or areas available for private parties that can host groups of 10 to<br />
100+ people. Carryout and home delivery services are also available. In certain markets, on-time delivery is guaranteed or the<br />
order is free. Customers place orders through a one-phone-number ordering system which allows customers anywhere in a<br />
metropolitan area to call a single number and have the order routed to the nearest location.<br />
The business was founded in 1964 in Stephenville, TX. Founder James Eure named his restaurant after his wife’s maiden<br />
name, Gatti. Parent LDB Corp. acquired it in 1978. In 1991, LDB Corp. filed for Chapter 11 bankruptcy and emerged after a<br />
100% repayment of bill to its creditors. Management led a buyout in 1994 and took the company private. In 2004, a private<br />
Central Texas equity firm, Blue Sage Capital, purchased the Mr. Gatti’s chain from the owner, L.D. Brickman. Mr. Gatti’s has<br />
since announced a major area development deal with Pizza Southeast LLC, a retail franchise group. Pizza Southeast will aid<br />
in Mr. Gatti’s expansion into the southeastern U.S., particularly in Tennessee. Dozens of units are scheduled to open in the<br />
Southeast over the next seven years.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
439
<strong>Menu</strong> Positioning |<br />
Mr. Gatti’s is open daily for lunch and dinner. The chain features a buffet format and offers a menu that is centered on pizza.<br />
Its signature items are its varieties of 10-, 12- and 14-inch pizzas that can be prepared with up to 16 different toppings.<br />
Specialties within the pizza line include Gatti’s Deluxe, Meat Market, Bacon Double Cheeseburger, Vegetarian Black Bean<br />
Pizza and BBQ Chicken Pizza. Other popular menu items include spaghetti, lasagna, chicken wings, salads and desserts such<br />
as Dutch Apple Treat Pizza, Coconut Creme Pizza and Chocolate Creme Pizza. One of its newest menu items is the Crust<br />
d'licious pizza—a pan pizza with crust that needs 50% less oil for baking, resulting in a crust that the chain claims is crispier<br />
and less greasy. Beer is served at most units; the beverage selection varies according to location. <strong>Menu</strong> prices range from<br />
$6.99–$16.99. Checks average $8.50.<br />
Technology |<br />
Mr. Gatti’s has launched its new ordering system online. Online ordering available for participating Austin, TX, locations.<br />
(Company Web site 12/21/06)<br />
Personnel |<br />
Charlie Kaminsky, Corporate Chef<br />
Mike Glenn, Director of Operations<br />
Michael Mrlik, CEO<br />
Steve Burt, CFO<br />
Ed Cohen, V.P. of Marketing<br />
J. Dean Satchwell, V.P. of Supply Chain<br />
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published.<br />
440
Mrs. Fields<br />
Headquarters<br />
2855 E. Cottonwood Pkwy Suite 400, Salt Lake City, Utah 84121 USA<br />
Tel: (801)736-5600 Fax: (801)736-5970<br />
www.mrsfields.com<br />
Ownership: Private<br />
Segment: Limited Service Snack<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 105,000 110,000 114,000<br />
Company-owned ($000) - 15,000 18,000<br />
Franchised ($000) 105,000 95,000 96,000<br />
U.S. Number of Units 403 422 433<br />
Company-owned - 49 57<br />
Franchised 403 373 376<br />
International Sales ($000) 30,000 24,000 22,000<br />
International Units 97 87 82<br />
Average Sales/Unit ($000) 270 275 280<br />
Concept Positioning |<br />
Mrs. Fields is a quick-service chain of retail bakery units selling a variety of snacks—namely baked goods and candies as well<br />
as beverages and frozen treats. Its specialties are its freshly baked assortment of cookies, particularly the signature chocolate<br />
chip cookie, sold in a variety of flavors and sizes. Other popular baked items include brownies and muffins. Mrs. Fields is<br />
franchised by Mrs. Fields Famous Brands LLC, and is owned and operated by private equity firm Capricorn Management.<br />
Units are usually located in malls, airports and high-traffic strip shopping centers. Its color scheme of red and white is carried<br />
out in the interior and exterior of each location. Ranging in size from 350–800 sq. ft., the units utilize their limited space by<br />
displaying sheets of cookies and brownies behind glass counters. There is no seating, nor are stand-up counters available.<br />
Debbi Field opened her first cookie store in an international food arcade in Palo Alto, CA, in 1977. International expansion<br />
began in 1984. In 1996, an investor group led by Capricorn Investors, through its Mrs. Fields’ Holding Company, Inc., formed<br />
Mrs. Fields' Original Cookies, Inc. as part of a merger with Midial S.A.'s U.S. foodservice holdings that included the Hot Sam,<br />
Corn Dog on a Stick and The Original Cookie Co. chains. In 1998, its parent acquired three additional chains: Great American<br />
Cookies, Pretzel Time and Pretzelmaker. In 2000, Mrs. Fields, through a management agreement, assumed the corporate and<br />
administrative functions of TCBY and began operating as Mrs. Fields Famous Brands LLC, which is owned by parent<br />
Capricorn Investors. Over the years, the company has entered into a number of license agreements to produce and sell Mrs.<br />
Fields products in stores owned and operated by others as well as market a line of Mrs. Fields chocolate chips. Another<br />
version of the bakery is for in-store development in large supermarket chains. For example, the chain has teamed with Wal-<br />
Mart to license co-branded stores in a number of the international retailer's super centers. Long-term expansion plans have not<br />
been disclosed.<br />
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published.<br />
441
<strong>Menu</strong> Positioning |<br />
The menu at Mrs. Fields' features a variety of cookies, brownies, muffins, candies and beverages. Signature items are its<br />
Chocolate Chip and Butter cookies. Other cookie flavors include Butter Toffee, Cinnamon Sugar, Coconut & Macadamias, Milk<br />
Chocolate & Walnuts, Oatmeal Chocolate Chip, Peanut Butter, Snickerdoodle and White Chunk Macadamia. Other menu<br />
items include nut-and-chocolate Popcorn Clusters, bundt cakes, Raspberry Bark, chocolate truffles, chocolate-covered<br />
pretzels, mini muffins, brownie bits, bite-sized Nibbler cookies and Krunch—puffed rice treats layered with peanut butter and<br />
milk chocolate. A line of 12-inch birthday cookies are hand-decorated with chocolate and buttercream icing and sprinkles and<br />
include personal messages. Many units have also introduced bagels and other baked goods as well as Seattle's Best Coffee.<br />
In addition, the chain offers cookies and other baked goods by the tin or in gift baskets that can be purchased onsite or<br />
ordered and shipped nationwide. Prices for these selections range between $19.99 for a cookie tin to $109 for the most<br />
elaborate cookie and brownie gift basket. <strong>Menu</strong> prices range from $1.45 for a single cookie, $7.59 for ½ dozen and $1.54–<br />
$14.99 for other menu items. Checks average $5.<br />
<strong>Menu</strong> Development |<br />
Mrs. Fields Cookies has rolled out a new line of brownie flavors as well as a line of specialty drinks, including cappuccinos and<br />
espressos, to its revamped unit in the Westfield Great Northern shopping mall in North Olmstead, OH. The new beverages are<br />
only being tested at this unit. (Nation’s Restaurant News 11/06/06)<br />
Personnel |<br />
Steve Russo, CEO<br />
Gregory K. Barber, CFO<br />
Bob Frankie, V.P. of Operations<br />
John Lauck, CMO<br />
Dennis Ulrich, V.P. of Supply Chain & Development<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
442
Mrs. Winner's Chicken & Biscuits<br />
Headquarters<br />
6055 Garfield Rd. Suite 200, Atlanta, Georgia 30328 USA<br />
Tel: (404)459-5805 Fax: (678)514-4677<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 92,000 105,000 98,500<br />
Company-owned ($000) 72,000 84,000 82,500<br />
Franchised ($000) 20,000 21,000 16,000<br />
U.S. Number of Units 115 131 119<br />
Company-owned 91 98 98<br />
Franchised 24 33 21<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 760 775 765<br />
Concept Positioning |<br />
Mrs. Winner's Chicken & Biscuits is a chain of quick-service chicken restaurants. Open for breakfast, lunch and dinner, the<br />
restaurant prides itself on its specialty—fried chicken. The chicken is cut into eight pieces and cooked in an open-vat fryer.<br />
Once cooked, the chicken is held no longer than one hour. Excess cooked chicken is used in the chicken potpie entrée and<br />
barbecue sandwich. Winner’s International Restaurants is the owner and franchisor of Mrs. Winner’s. Of its 113 units, 20% are<br />
franchised. Mrs. Winner’s operates in seven southeastern states in the U.S.<br />
Units are bright with red and yellow colors. Four different unit sizes are used: a small, 32-seat, labor-efficient unit for an urban<br />
location; a medium-sized, 60-seat unit; a mini-unit that provides walk-in/drive-up service only; and an upscale, 90–100-seat<br />
unit for a suburban location. These units feature a boardinghouse-style exterior with gables and a perimeter porch. In late<br />
2007, Mrs. Winner's announced plans to begin an overhaul of its unit design and décor package at more than 90 companyowned<br />
stores, in efforts to increase the chain's appeal with a younger customer base.<br />
Mrs. Winner’s Chicken and Biscuits started out as a restaurant chain named Granny's featuring fried chicken and biscuits in<br />
Atlanta in 1977. Volunteer Capital purchased the chain in 1979. The name was changed from Granny’s to Mrs. Winner’s<br />
Chicken and Biscuits; however, in 1983, the name was changed again to Winners Corporation. RTM purchased Mrs. Winner's<br />
in 1989. In early 2000, RTM sold its controlling interest to Winners International, a strategic partnership with RTM and<br />
BancBoston Development Co. Winners International also owns the Lee’s Famous Recipe chain. RTM retained a 20% stake in<br />
the new company. In 2002, RTM rolled Winners International operations under Arby's operations leadership. In 2006, Lee's<br />
Famous Recipes Inc. acquired the Mrs. Winners chain for an undisclosed sum. The deal was negotiated by TM Capital. Longterm<br />
expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Mrs. Winner's is a quick-service chain open for breakfast, lunch and dinner. Its signature item is its fried chicken, available as<br />
meals or by the piece. Other menu items include its Country-Fried Steak & Gravy Dinner, pot pies, chicken fillets, BBQ<br />
sandwiches, potato wedges, green beans, cole slaw, macaroni & cheese, baked beans, biscuits and whipped potatoes &<br />
gravy. Desserts include assorted fruit pies. Breakfast biscuits are available in 15 varieties including sausage, ham, bacon or<br />
country-fried steak with eggs and cheese. <strong>Menu</strong> prices range from .99¢ for a side item to $25.99 for a 16-piece meal. Checks<br />
average $4.39.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
443
Personnel |<br />
Michael Lippert, S.V.P. of Operations<br />
Roland Smith, CEO<br />
Steve Hare, CFO<br />
Tom Garrett, President<br />
Chris Kuchne, V.P. of Marketing<br />
News & Other |<br />
Mrs. Winner’s Chicken & Biscuits plans to renovate restaurants and increase marketing and advertising beginning in early<br />
2008. The Dunwoody, GA-based chain plans to revamp 91 company-owned stores to improve their appeal to younger<br />
customers. Specific changes have not been disclosed, but the chain will keep its Southern theme. Mrs. Winner’s currently<br />
uses a yellow-and-red color scheme and the tagline “Southern Good” to promote its fried chicken-on-the-bone and traditional<br />
vegetables. Famous Recipe Company Operations, parent of Mrs. Winner’s, operates 113 units in five states. (The Atlanta<br />
Journal-Constitution 10/4/07)<br />
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published.<br />
444
Nathan's Famous<br />
Headquarters<br />
1400 Old Country Rd. Suite 400, Westbury, New York 11590 USA<br />
Tel: (516)338-8500 Fax: (516)338-7220<br />
www.nathansfamous.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 100,100 98,824 85,000<br />
Company-owned ($000) 12,100 11,399 10,000<br />
Franchised ($000) 88,000 87,425 75,000<br />
U.S. Number of Units 180 181 157<br />
Company-owned 6 6 5<br />
Franchised 174 175 152<br />
International Sales ($000) 3,300 3,106 1,500<br />
International Units 21 17 5<br />
Average Sales/Unit ($000) 685 683 495<br />
Concept Positioning |<br />
Nathan's Famous is a New York-based chain of limited-service restaurants open for breakfast, lunch and dinner. The<br />
restaurant’s specialty is its premium-quality, all-beef hot dogs. Parent company Nathan Famous Inc. operates 24 companyowned<br />
locations and franchises nearly 400 locations, as well as 1,400 branded points of distribution in nontraditional settings<br />
nationwide.<br />
The company has a variety of outlets ranging from carts, counters, food courts and full-service restaurants. Store sizes and<br />
designs vary from 300–4,000 sq. ft., although its Coney Island unit in Brooklyn and its Central Park Avenue store in Yonkers,<br />
NY, are both 10,000 sq. ft. Its typical food court units share seating with others in the setting. Inline or freestanding prototypes<br />
have seating for 45–125. Units generally are decorated in bright colors, particularly a bold yellow color scheme. Brass fixtures<br />
and stained glass windows of scenes of old Coney Island, NY, contribute to the ambiance. Food is dispensed from stand-up<br />
counters to be taken out or eaten on-premise from paper plates with plastic utensils. The company also operates a catering<br />
service at some locations. It also markets a line of packaged meat products in retail food stores. Food is ordered centrally and<br />
then delivered to local units.<br />
Nathan’s began as a nickel hot dog stand in Coney Island, NY in 1916. Nathan and Ida Handwerker opened the frankfurter<br />
stand on Surf Avenue and the company was incorporated in 1925. Franchising began in 1987. In early 1993, an initial public<br />
offering was completed. In late 1998, the corporation acquired some 30% of the stock of Miami Subs Corp. for $4.2 million and<br />
in early 1999, acquired the remaining shares. About the same time, the company received court approval to acquire the Kenny<br />
Rogers Roasters chain out of bankruptcy for $1.25 million in cash and related expenses. That acquisition was completed in<br />
1999. The company now operates and franchises limited-service restaurants in more than 20 states and 17 other countries.<br />
The company has also been active in co-branding programs that include such names as KFC, Pizza Hut, Taco Bell, Dunkin’<br />
Donuts, TCBY, Burger King, Kenny Rogers Roasters, Miami Subs Grill, Baskin-Robbins and Arthur Treacher's Fish and Chips.<br />
Expansion plans call for the development of single and co-branded sites internationally—specifically Egypt and Israel—and in<br />
New York and southern Florida.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
445
<strong>Menu</strong> Positioning |<br />
Nathan's offers one menu for both lunch and dinner. A few of its stores offer breakfast selections of egg, cheese and meat<br />
sandwiches. Its signature items are its Coney Island-style all-beef hot dogs and crinkle-cut fries. The chain also menus<br />
chargrilled hamburgers, chili, chicken sandwiches, chicken tenders, Hot Dog Nuggets, onion rings, fish fillet sandwiches, pizza<br />
and deli items such as roast beef, salami, corned beef and pastrami sandwiches. Some locations offer beer and wine, in<br />
addition to non-alcoholic beverages that include Nathan’s trademark lemonade that is freshly squeezed. <strong>Menu</strong> prices range<br />
from $5–$7 for Value Meals (includes fries and a soft drink) and $2–$4 for A la Carte. Checks average $5.39.<br />
Promotion Plans |<br />
Nathan’s Famous is offering its Nacho Chicken Cheese, Bourbon Beef and Southwest Chicken Caesar sandwiches for $3.99.<br />
(Company Website 2/12/07)<br />
<strong>Menu</strong> Development |<br />
Nathan’s Famous premiered its line of “Not Dogs,” featuring steak, chicken, lobster salad and fried-clam dishes served in hotdog<br />
buns. The Steak Not Dog includes beef, sautéed white onion, barbecue sauce and melted cheese and the Chicken Not<br />
Dog includes chicken tenders, bacon, lettuce and ranch dressing. (Nation’s Restaurant News 7/30/07)<br />
Personnel |<br />
Wayne Norbitz, COO/President<br />
Eric Gatoff, CEO<br />
Jerry Woda, CFO<br />
Nancy Murphy, V.P. of Purchasing<br />
Nancy Murphy, V.P. of Development<br />
News & Other |<br />
Nathan’s Famous Inc. sold its Miami Subs Corporation to Miami Subs Capital Partners I Inc. for about $3.3 million, with<br />
$850,000 paid in cash and $2.4 million paid over a four-year term. (Company Release 6/8/07)<br />
Nathan’s Famous reported fourth quarter total revenue increases of 12% to $9.9 million. Net income from continuing<br />
operations increased 111% to $1.2 million. For the full year, total revenue from continuing operations increased 11% to $45.7<br />
million. (Seeking Al<br />
Nathan’s Famous Executive Vice President Donald L. Perlyn exercised options for 10,000 shares of common stock. Perlyn<br />
exercised options for the shares for $3.19 apiece. He sold 13,200 shares for $17.75–$18.08 on August 23–24. (Associated<br />
Press 8/28/07)<br />
Nathan’s Famous is testing a new Frank & Fry concept at eight locations in Pittsburgh and throughout the South as part of a<br />
co-branding agreement with Pittsburgh-based Brewster’s Ice Cream. It is a mini-version of the company’s full-size stores<br />
specializing in the chain’s famous hot dogs and french fries. The company plans to use the concept to co-brand with existing<br />
retail businesses and foodservice providers. Nathan’s expects to open approximately 150 Frank & Fry units over the next two<br />
years through franchising. Nathan’s Famous is the operator and franchisor of 300 namesake stores as well as the Kenny<br />
Rogers Roasters and Arthur Treacher’s brands. (Nation’s Restaurant News Online 9/16/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
446
Noodles & Company<br />
Headquarters<br />
520 Zang St., Broomfield, Colorado 80021 USA<br />
Tel: (720)214-1900 Fax: (720)214-1934<br />
www.noodles.com<br />
Ownership: Private<br />
Segment: Limited Service Asian/Noodle<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 142,500 123,000 92,500<br />
Company-owned ($000) 117,500 115,000 91,000<br />
Franchised ($000) 25,000 8,000 1,500<br />
U.S. Number of Units 143 115 101<br />
Company-owned 110 103 98<br />
Franchised 33 12 3<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,100 1,125 1,100<br />
Concept Positioning |<br />
Noodles & Company is one of the largest fast-casual, limited-service noodle concepts on the market. Noodles & Company is a<br />
privately held company. The fun and friendly atmosphere boasts fresh and fast food that appeals to a wide demographic of<br />
diners. Though its signature dishes consist of noodles, Noodles & Company is not limited to Asian food. The restaurant’s<br />
globally inspired menu features noodle and vegetable bowls, soups and green salads with pasta. It also offers "noodle-less"<br />
dishes, such as mixed grill and shrimp sauté. The restaurant only uses the freshest ingredients—artisan sauces, hand-picked<br />
herbs, native spices, farm-fresh vegetables, grilled meats, shellfish, tofu, fresh noodles, whole grain noodles and dried pastas.<br />
Approximately 77% of the restaurants are company owned; the remaining units are franchised. Noodles & Company is a<br />
national chain with most locations in Midwest and West Coast states.<br />
Restaurant buildings can be freestanding or built into shopping centers and are usually found in suburban locations. The units<br />
are 2,500 sq. ft. and generally seat around 100 guests.<br />
Interiors feature an understated, clean and contemporary décor with bold colors. The signature colors are ocher and sage,<br />
while tables feature micro-laminated tops. The interior incorporates the use of natural materials and noodle shaped<br />
elements—pendulum lamps, bamboo tables, iron post, half-moon menu boards and photographs featuring worldwide<br />
marketplaces. Most units have outdoor seating when the weather permits.<br />
Aaron Kennedy, a former brand manager at PepsiCo, founded Noodles & Co. in 1995 in Boulder, CO. That same year,<br />
Kennedy and 25 investors, mostly family members, who still own a part of the private chain, opened the first Noodles & Co. in<br />
Denver. The second restaurant launched in 1996 in Madison, WI. In 2003, the company started franchising and opened its first<br />
franchised location in 2004. There are currently over 140 locations in the U.S. and new franchises are opening on a regular<br />
basis.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
447
<strong>Menu</strong> Positioning |<br />
Serving lunch and dinner, Noodles & Company specializes in noodle entrees as well as salads and noodle-less menu items.<br />
Signature items include Japanese Pan Noodles, Penne Rosa and Wisconsin Mac & Cheese. Mediterranean, Asian and<br />
American-influenced dishes are showcased. Most dishes can be cooked to accommodate specific vegetarian tastes and all<br />
noodle entrées are served in china bowls. The chain also menus soups, salads and breads. Some favorite soups include Thai<br />
Curry Soup and Chicken Noodle Soup. Popular salads include Chinese Chop Salad and Spicy Peanut Noodle Salad. Guest<br />
favorites for noodle-less options include Mediterranean Mixed Grill, Sweet Chili Chicken and Chicken Rustica. A selection of<br />
domestic and international bottled beer and wine is listed. A small kids’ menu is available, featuring smaller portions and childsized<br />
beverages. Non-alcoholic beverages include fountain drinks, milk, juices and hot and iced teas. <strong>Menu</strong> prices range from<br />
$2–$6.95. Checks average $8.25.<br />
Expansion Plans |<br />
Noodles & Co. will open a new location in Columbus, OH. The unit marks the company’s fourth in the area. (Bizjournals.com<br />
4/6/07)<br />
<strong>Menu</strong> Development |<br />
Noodles & Company rolled out a Good Balance educational program to its 150 restaurants and on its website. The program<br />
was developed to give customers information on the dishes featured on the menu. Also, every dish at the chain can be<br />
purchased as part of a Trio, which allows guests to combine any small noodle bowl, soup or salad with a protein and a side<br />
salad. Two-thirds of its menu features entrées with less than 500 calories, including the Bangkok Curry Trio, small Pasta<br />
Fresca and the Med Salad. One-third of Noodles & Company’s dishes contain less than 10 grams of fat, including the<br />
Japanese Pan Noodles Trio, small Pad Thai or small Indonesian Peanut Sauté. (Company Release 6/20/07)<br />
Technology |<br />
Noodles & Company restaurants has become the first restaurant chain to allow customers to pay with their cell phones. The<br />
new system combines text-message capabilities with multi-channel communication. (Company Release 11/28/06)<br />
Noodles & Co. is using a new technology that allows patrons to pay for meals with their cell phones. The Boulder, CO-based<br />
chain is testing the system, which was developed by FEED Tribes, at three local Noodle outlets. Customers can set up<br />
individual accounts with FEED and use their cell phones to draw money from them. Patrons would send a text message to<br />
FEED and then a temporary personal ID number would be assigned so that a Noodles cashier can enter it into the register.<br />
(NRN Daily NewsFax 11/29/06)<br />
Personnel |<br />
Keith Kinsey, CEO/COO<br />
Joe Gordon, V.P. of Purchasing<br />
Dawn Voss, V.P. of Operations<br />
Dwayne Chambers, V.P. of Marketing<br />
News & Other |<br />
Noodles & Company sold a minority equity stake to Och-Ziff Capital Management Group. Och-Ziff’s investment will help the<br />
chain in its goal to expand to more than 500 restaurants in the next five to seven years. (NRN Daily NewsFax 7/11/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
448
O'Charley's<br />
Headquarters<br />
3038 Sidco Drive, Nashville, Tennessee 37204 USA<br />
Tel: (615)256-8500 Fax: (615)782-5043<br />
www.ocharleys.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 637,000 614,500 593,400<br />
Company-owned ($000) 623,400 607,000 588,400<br />
Franchised ($000) 13,600 7,500 5,000<br />
U.S. Number of Units 237 229 223<br />
Company-owned 231 225 221<br />
Franchised 6 4 2<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,723 2,715 2,700<br />
Concept Positioning |<br />
O’Charley’s are full-service restaurants open seven days a week, serving a broad-based menu for lunch, dinner and Sunday<br />
brunch. O’Charley’s Inc. is the parent company of O’Charley’s. The restaurants, which emphasize fresh preparation, and<br />
consistent high-quality food and service, are moderately priced to attract both young adults and families. Most menu items are<br />
prepared on-premise, with its specialty entrees using fresh chicken, seafood and aged beef. O'Charley's also offers a fullcolor,<br />
stand-alone drink menu. O’Charley’s Inc. operates almost all of its units; less than 3% are franchised. There are just<br />
over 230 O’Charley’s Restauarants in 19 states in the Southeast and Midwest.<br />
O'Charley's are typically freestanding old-style red brick buildings. The neighborhood-themed design has bright red and green<br />
neon borders and multi-colored awnings on the outside to complement the interior ambiance built around warm woods,<br />
polished brass, brick and neon accents, exposed kitchens and hand-painted murals depicting history, events and places<br />
indigenous to each site. O'Charley's has been working to implement an overall interior makeover within all of its units. Updates<br />
will include a new color scheme, decor, lighting, kitchen design, increased booth seating, new table wear and employee<br />
uniforms. These changes will be installed system wide through 2009. The full-service casual dining restaurants are open for<br />
lunch, dinner and Sunday brunch. Units are approximately 6,750 sq. ft. in size. Dining areas seat approximately 220 guests<br />
inside, with an additional 70 seats in the bar area.<br />
O'Charley's was founded in 1983 as a franchise of a barbecue restaurant concept by David K. Wachtel, Jr., a former chief<br />
executive officer of Shoney's, Inc. In May 1984, it acquired the original O'Charley's restaurant in Nashville which was started in<br />
1971 by Charles Watkins. In July 1990, the company went public. In the early 90's, it acquired a 20% stake in Logan's<br />
Roadhouse. In 1995, O’Charley’s assisted taking Logan's public as well as selling its interest. In May 2000, it announced the<br />
acquisition of Stoney River Legendary Steaks, a two-unit Atlanta-based upscale steakhouse concept which has since grown to<br />
six units. In 2003, O'Charley's acquired the Ninety-Nine Restaurant & Pub, a varied menu chain that operates primarily in New<br />
England, for $160 million. Additional franchise development is underway in nine additional states.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
449
<strong>Menu</strong> Positioning |<br />
O’Charley’s is open for lunch, dinner and Sunday brunch. O'Charley's menu contains over 60 items, including appetizers,<br />
soups and salads, sandwiches, burgers, steak and ribs, seafood, combos, chicken, pasta, desserts and beverages. Favorite<br />
menu items include O’thentic Spinach & Artichoke Dip—a warm, creamy blend of spinach and artichoke hearts with Parmesan<br />
cheese, served with sour cream, salsa and tortilla chips; O’Charley’s Signature Baby Back Ribs—slow cooked and seasoned<br />
with brown sugar and spices and grilled with honey barbecue sauce; O’Charley’s Signature Salads—garden salads topped<br />
with anything from steak to pecan encrusted chicken and served with O’Charley’s signature dressing. Alcoholic beverages are<br />
served along with soft drinks and smoothies. Sunday brunch offers 9 menu items, served from 10:30am until 3:00pm. The<br />
kid’s menu offers 9 items ranging in price from $2.99-$4.29. Its signature dessert is Caramel Pie. <strong>Menu</strong> prices range from<br />
$2.99–$17.99. Checks average $17.<br />
Promotion Plans |<br />
O’Charley’s is offering a free dessert upon the completion of a customer satisfaction survey. The survey can be taken online<br />
and the restaurant will e-mail a message for a free dessert. (Company Website 8/31/07)<br />
<strong>Menu</strong> Development |<br />
O’Charley’s debuted several new dishes featuring Whiskey Creek and Chipotle BBQ sauces. New entrées include: •Whiskey<br />
Creek Ribeye—a seasoned 12-oz. butcher’s cut premium ribeye steak grilled to order, topped with golden-fried sweet onion<br />
rings and covered in Whiskey Creek Sauce (with a splash of teriyaki and bourbon), served with a side item, salad and baked<br />
roll •Whiskey Creek Sirloin Sandwich—two butcher’s cut premium sirloin medallions with roasted red peppers, crisp bacon,<br />
Monterey Jack cheese, lightly fried sweet-onion rings and Whiskey Creek Sauce, served on ciabatta bread with a side of fries<br />
•Whiskey Creek Salmon—10-oz. Atlantic salmon filet seasoned with the Whiskey Creek Sauce and grilled, served with a side<br />
item, salad and baked roll •Chipotle Chicken O’Tenders—O’Charley’s famous Chicken O’Tenders glazed with Chipotle BBQ<br />
sauce and served with a salad or soup, side item and baked roll •Chipotle BBQ Ribs—a full or half rack of Fall-Off-The-Bone<br />
baby back ribs covered in Chipotle BBQ sauce, served with seasoned fries and Island Cole Slaw •Beer-Battered Onion<br />
Rings—onion rings coated in sweet beer batter, fried and served with Cajun Horseradish sauce •Chocolate Chip<br />
Cheesecake—cheesecake loaded with chocolate chips in a graham-cracker crust, served with a chocolate-chip cookie,<br />
chocolate sauce and whipped topping. (Company Website)<br />
O’Charley’s debuted new menu items for a limited time. New selections include Buttermilk-Battered Calamari, Our Famous<br />
Jumbo Seafood Platter, Grilled Swordfish, Lobster & Shrimp Ravioli, Steak & Crab Cakes Combo and Grilled Salmon<br />
Ciabatta. (Company Website)<br />
O’Charley’s is emphasizing freshness with its promotion of five new menu items that showcase fresh herbs and ingredients.<br />
The new items include Bruschetta with Flatbread ($6.49); Center-Cut Sirloin ($15.99); and Crème Brûlée Cheesecake ($5.99).<br />
Limited-time menu items include Baked Shrimp Scampi Pasta ($12.99); Greek Chicken Salad ($8.99) and Bistro Chicken—<br />
chicken breasts topped with Parmesan-and-herb potatoes ($10.99). (Nation’s Restaurant News 5/28/07 p20)<br />
O’Charley’s rolled out several new menu items for a limited time. Selections include: • Cajun Jambalaya Pasta—sautéed<br />
shrimp, chicken, smoked sausage, tomatoes, onions and green peppers served in a spicy Creole cream sauce with penne<br />
pasta • Pretzel Crunch Chicken—chicken strips covered in crunchy pretzel breading, paired with a choice of soup or salad,<br />
side item and Dijon mustard dipping sauce • Wild Country-Fried Chicken—boneless chicken breast lightly breaded and fried,<br />
finished with Wild Mushroom Tequila sauce and served over garlic smashed potatoes with green beans • Whiskey Grilled<br />
Ribeye—seasoned 12-oz. butcher’s cut premium ribeye grilled to order, finished with golden-fried sweet beer-battered onion<br />
rings and covered with smoky-sweet whiskey sauce, paired with a choice of soup or salad and a side item • Cedar-Planked<br />
Tilapia—tilapia filet seasoned with lemon pepper, grilled on a cedar wood plank and served with green beans • Asian Steak<br />
Salad—sirloin steak medallions over mixed greens, roasted red peppers, cucumbers, fresh Roma tomatoes, red onion,<br />
Mandarin oranges and spicy almonds, paired with an Asian vinaigrette • Pretzel Crunch Chicken Appetizer—chicken strips<br />
covered with crunchy pretzel breading and paired with Dijon mustard dipping sauce • Banana Split Pie—chocolate and banana<br />
cream pie finished with whipped topping, raspberry sauce, pecans, fresh strawberries, pineapple chunks and chocolate chips.<br />
(Company Website; Nation’s Restaurant News Online 6/21/07)<br />
O’Charley’s introduced its Flavor Road promotion featuring eight updated dishes, including Cedar-Planked Salmon Chopped<br />
Salad ($9.49), Key West Citrus Chicken ($9.99), Good Time Grillers ($8.99), New York Pizza Pie Pasta ($10.99) and<br />
Louisiana Sirloin ($14.99). (NRN Daily NewsFax 8/23/07)<br />
O’Charley’s introduced new Flavor Road dishes. They include Cedar-Planked Salmon Chopped Salad, Key West Citrus<br />
Chicken, New York Pizza Pie Pasta and Louisiana Sirloin, as well as donuts tossed tableside in cinnamon sugar. The items,<br />
available for a limited time, are priced between $4.99 and $14.99. (Nation’s Restaurant News 9/10/07)<br />
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published.<br />
450
Technology |<br />
O’Charley’s Inc. is updating the kitchens of its namesake and Ninety Nine Restaurant casual-dining chains with QSR<br />
Automation’s ConnectSmart Kitchen software and eXpert controller hardware. The new system eliminates printed tickets and<br />
uses graphical displays to show order components by preparation station and status. It also helps ensure foods needed for<br />
one order or table are completed at the same time. The company has set a targeted project completion date for the end of<br />
2008. (Nation’s Restaurant News 8/13/07)<br />
Personnel |<br />
Stephen Bulgarelli, Culinary Director<br />
Gregory Burns, CEO<br />
Lawrence Hyatt, CFO<br />
Guy Stanke, V.P. of Operations<br />
Dawn Boulanger, V.P. of Marketing<br />
Lawrence Taylor, Chief Supply Chain Officer<br />
O’Charley’s Restaurants promoted Guy Stanke to vice president of operations. Previously, Stanke served as the company’s<br />
regional vice president of operations. Stanke replaces Frank Biller. (NRN Daily NewsFax 8/20/07)<br />
O’Charley’s Inc. promoted Steve McMillan to Vice President of Training and Human Resource Development and Bob Luz to<br />
Vice President of Field Human Resources. McMillan previously served as Vice President of Human Resource Development<br />
and Luz served as Vice President of Human Resources. Also, Randy Harria resigned as Chief Human Resources Officer.<br />
(Restaurantnewsresource.com 9/21/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
451
Old Chicago Restaurants<br />
Headquarters<br />
248 Centennial Pkwy., Louisville, Colorado 80027 USA<br />
Tel: (303)664-4000 Fax: (303)664-4199<br />
www.oldchicago.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 192,000 169,000 143,650<br />
Company-owned ($000) 141,000 128,000 120,000<br />
Franchised ($000) 51,000 41,000 23,650<br />
U.S. Number of Units 88 80 71<br />
Company-owned 62 58 55<br />
Franchised 26 22 16<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,300 2,300 2,250<br />
Concept Positioning |<br />
Old Chicago Restaurants is a full-service chain of restaurants specializing in authentic Chicago style pizza with made-fromscratch<br />
dough and their changing selection of more than 110 beers from around the world. Other menued items include a<br />
variety of pastas, calzones, salads, burgers and sandwiches. To encourage repeat business, the chain has an active customer<br />
loyalty program called the “World Beer Tour.” Old Chicago is owned by Rock Bottom Restaurants, Inc., parent company of fullservice<br />
Rock Bottom Brewery.<br />
Units vary from endcaps to freestanding and range in size from 5,000–8,500 sq. ft. with seating for 180–340 in separate dining<br />
room and bar areas. Each unit is unique to its location while still maintaining ties to its Chicago heritage with Chicago-style<br />
memorabilia. Bottled beers and up to 36 colorful tap handles for draft selection also decorate stores. Televisions are placed<br />
throughout for sporting or special event viewing. Some restaurants feature pool tables and outdoor patio seating. Newer units<br />
are reminiscent of a converted brick firehouse, topped off with a peaked roof.<br />
The Old Chicago chain was founded in 1976 by Frank B. Day. Rock Bottom Brewery was incorporated in 1994 and had its<br />
initial public offering that same year. In late 1999, management, led by Day, took the company private.<br />
<strong>Menu</strong> Positioning |<br />
Old Chicago Restaurants' signature offering is pizza for lunch and dinner. The selection includes Chicago-style deep dish and<br />
thin crust pizzas, as well as specialty and build-your-own varieties. Some 36 different toppings include traditional and<br />
nontraditional choices such as black beans or artichokes. The chain also menus more than 50 items including calzones,<br />
burgers, sandwiches, pasta, appetizers, salads and desserts. Beverages include soft drinks, iced teas and juices. A kids’<br />
menu offers a variety of classic items for $3.99 and includes a soft drink or milk. Full alcohol service is available, including a<br />
wide variety of domestic and imported beer, wine and specialty cocktails. <strong>Menu</strong> prices range from $5.49-$18.99. Checks<br />
average $9–$12.<br />
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published.<br />
452
Personnel |<br />
Ned Lidvall, CEO<br />
John Coletta, CFO<br />
Mary Ann Rose, V.P. of Purchasing<br />
Gary Foreman, V.P. of Operations<br />
Mike Thom, V.P. of Research & Development<br />
Bethany Lehmann, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
453
Old Country Buffet/HomeTown Buffet<br />
Headquarters<br />
1460 Buffet Way, Eagan, Minnesota 55121 USA<br />
Tel: (651)994-8608 Fax: (651)365-2356<br />
www.buffet.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,000,680 966,515 986,563<br />
Company-owned ($000) 963,162 926,781 942,831<br />
Franchised ($000) 37,518 39,734 43,732<br />
U.S. Number of Units 356 372 380<br />
Company-owned 338 354 360<br />
Franchised 18 18 20<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,811 2,598 2,596<br />
Concept Positioning |<br />
Old Country Buffet/HomeTown Buffet is a limited-service buffet concept owned by Buffets Holdings Inc. The restaurants<br />
operate 356 units across the U.S., 18 of which are franchised.<br />
Old Country Buffet units are 8,000–13,850 sq. ft. Décor is contemporary with “country” design elements. Areas can be<br />
partitioned off for group meetings and special events. HomeTown Buffet units are approximately 10,000 sq. ft. In both<br />
concepts, seating capacity ranges from 225–600 guests. Most units of the two brands are freestanding structures located in<br />
strip shopping centers. In both concepts, customers pay upon entering and are seated by restaurant personnel. All the<br />
restaurants incorporate a scatter bar service system in which the traditional buffet line is replaced by eight separate buffet<br />
islands; this format allows for shorter lines and easier patron access.<br />
Buffets Holdings, Inc. was founded by Roe H. Hatlen and C. Dennis Scott in 1983. The first Old Country Buffet opened in<br />
Richfield, MN, in 1984, and the first franchised unit began operations in 1985. In 1989, Scott left the company and founded<br />
HomeTown Buffet. In 1996, Buffets and HomeTown merged, forming the nation's 13th largest restaurant chain. In 2006,<br />
Buffets merged with Ryan's Restaurant Group. The $876 million cash transaction included the acquisition of Ryan's Grill,<br />
Buffet & Bakery and Fire Mountain concepts. Currently, the company is seeking franchisees for its buffets. In addition to over<br />
634 buffet restaurants, Buffets, Inc. and its subsidiaries operate nine Tahoe Joe’s Famous Steakhouses in California.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
454
<strong>Menu</strong> Positioning |<br />
Old Country Buffet/HomeTown Buffet units are open for breakfast, lunch and dinenr, featuring a variety of breakfast items,<br />
meats, seafood, vegetables, breads, sides and beverages. Entrées include carved roasted beef, ham, turkey, salmon, baked<br />
mostaccioli, spaghetti, enchiladas, chicken & dumplings, teriyaki wings, orange chicken, peppered pork loin, meatloaf, deepdish<br />
pizza, hamburgers, Italian sausage. Soups include potato cheese and cream of broccoli soup. Other highlights include<br />
wild rice pilaf and Spinach Marie, Lunch selections are limited and generally include chicken and two or three other dishes.<br />
HomeTown Buffet offers a broad selection of traditional American items with eight to 10 hot entrées at dinner or six to eight<br />
entrées at lunch, along with two soups and an extensive salad bar. Selections include fried and baked chicken and fish, carved<br />
roast beef, turkey, pork and baked ham, assorted vegetables and potato dishes, hot rolls and fresh-baked muffins and<br />
desserts. The salad bar has fresh fruit, pasta, seafood, vegetable and fruit salads Some entrée sections change daily;<br />
offerings include ethnic dishes, lasagna and barbecue ribs. <strong>Menu</strong> prices range from $7.50–$10.50. Checks average $8.<br />
Expansion Plans |<br />
Hometown Buffets is discussing plans with potential franchisees to open at least two of its restaurants in Boise, ID, next year.<br />
The chain plans to open at least seven locations in the area by 2012 but has not identified potential locations.<br />
(Idahostatesman.com 8/30/07)<br />
<strong>Menu</strong> Development |<br />
Old Country Buffet added 3 From the Sea on Thursday, Friday and Saturday evenings. The meal allows customers to choose<br />
from Butter Crumb Alaska Pollock, Orange Shrimp and Crab Cakes, as well as Clam Strips and Golden Fried Shrimp<br />
appetizers. (Company Website)<br />
Buffets, Inc. will convert all of its restaurants to zero trans fat frying oils by the end of 2007. The company operates 644<br />
restaurants in 39 states, including HomeTown Buffet, Old Country Buffet, Ryan’s, Tahoe Joe’s Famous Steakhouse and Fire<br />
Mountain. (Smart Brief Online 9/4/07; Company Release 9/4/07)<br />
Personnel |<br />
Mike Andrews, CEO<br />
Rick Sieradzki, CFO<br />
Paul Dubowski, V.P. of Purchasing<br />
Rich Kirk, V.P. of Operations<br />
Joni Bloom, V.P. of Marketing<br />
Joey Basso, V.P. of R&D<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
455
Old Spaghetti Factory, The<br />
Headquarters<br />
0715 S.W. Bancroft St., Portland, Oregon 97239 USA<br />
Tel: (503)225-0433 Fax: (503)226-6214<br />
www.osf.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 97,000 97,200 98,500<br />
Company-owned ($000) 78,500 76,300 78,300<br />
Franchised ($000) 18,500 20,900 20,200<br />
U.S. Number of Units 37 38 39<br />
Company-owned 30 30 31<br />
Franchised 7 8 8<br />
International Sales ($000) 8,000 7,800 7,800<br />
International Units 6 6 6<br />
Average Sales/Unit ($000) 2,530 2,500 2,525<br />
Concept Positioning |<br />
The Old Spaghetti Factory is a full-service, family-oriented chain specializing in pasta. Restaurants are generally located in<br />
older areas of town, often in the warehouse district. The concept positions itself as a casual, relaxed dining room specializing<br />
in homestyle Italian fare at affordable prices. As such, the chain is popular with a wide spectrum of diners, from young adults<br />
to large groups and families with children. OSF International Inc. is the owner and operator of the chain, which operates<br />
nationwide and franchises international units in Canada and Japan.<br />
Units range in size from 12,000–14,000 sq. ft., with seating for 250–550. The average total area is approximately 12,000 sq.<br />
ft., with space for 385 in the dining area and another 70 in the bar. Of the 39 restaurants, 27 of them are freestanding units.<br />
Interior designs feature stained glass, rich colors and wood as well as antique furnishings and light fixtures. A trolley car<br />
serves as the focal point in the main dining room of each restaurant. Today, The Old Spaghetti Factory has invested close to<br />
$1 million per unit in antiques and other interior improvements. There is a 25,000 sq. ft. warehouse and crew of craftspeople<br />
who restore antiques and create reproductions primarily for the restaurants.<br />
Guss Dussin, a Greek immigrant who founded the Old Spaghetti Factory, opened the first restaurant opened in 1969 in<br />
Portland, OR. Old Spaghetti Factory remains a family-owned chain. Today, restaurants are located in Arizona, California,<br />
Colorado, Georgia, Hawaii, Indiana, Kentucky, Minnesota, Missouri, Nevada, Ohio, Oregon Tennessee, Utah and Washington.<br />
No long-term expansion plans have been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Old Spaghetti Factory restaurants offer a variety of Italian-style dishes, including lasagna, ravioli, tortellini and spaghetti served<br />
with several kinds of sauces. Other popular menu items include sandwiches and a selection of daily lunch specials. Nearly<br />
everything on the menu is made from scratch using fresh ingredients. The signature item is spaghetti— available with four<br />
sauces, including marinara, mushroom sauce, white clam sauce and classic meat sauce. The chain also lists lasagna,<br />
Chicken Parmigiana, Fettuccine Alfredo and Chicken Caesar Salad as a few of its best-selling entrées. Full liquor service is<br />
available. Its kids’ menu offers variety of pastas for $3.99. In keeping with its affordable positioning, complete dinners are<br />
available for under $6. <strong>Menu</strong> prices range from $5–$7 for lunch and $7–$12 for dinner. Checks average $9 for lunch and $16<br />
for dinner.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
456
<strong>Menu</strong> Development |<br />
Old Spaghetti Factory introduced its Chocolate Mousse Cake. The dessert features a rich chocolate cake filled and topped<br />
with dark chocolate mousse, chocolate fudge and chocolate curls. (Company Web site 12/19/06)<br />
Personnel |<br />
Glenda Wong, Controller<br />
Adolph Lehman, V.P. of Purchasing<br />
George Knollmeyer, V.P. of Operations<br />
Chris Dussin, President<br />
Chris Hein, V.P. of Marketing<br />
Bob Martin, V.P. Research & Development<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
457
Olive Garden<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809 USA<br />
Tel: (407)245-4000 Fax: (407)245-5562<br />
www.olivegarden.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,680,200 2,496,600 2,257,000<br />
Company-owned ($000) 2,680,200 2,496,600 2,257,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 589 562 541<br />
Company-owned 589 562 541<br />
Franchised - - -<br />
International Sales ($000) 20,000 20,000 18,000<br />
International Units 6 6 6<br />
Average Sales/Unit ($000) 4,600 4,400 4,100<br />
Concept Positioning |<br />
Olive Garden is the leading restaurant in the Italian dining segment, with almost 600 restaurants nationwide. Its casual-dining<br />
format is that of a moderately priced Italian dinnerhouse targeted at adult customers aged 25–45. As part of the overall<br />
marketing mix, menus reflect regional taste preferences of customers. <strong>Menu</strong> items are based on the traditional dishes of<br />
Northern and Southern Italy. Owned and operated by leading restaurant company Darden Restaurants, Olive Garden is part of<br />
a brand portfolio that includes top chains such as Red Lobster, The Capital Grille and LongHorn Steakhouse.<br />
Units are freestanding and range in size from 5,500–9,100 sq. ft.; the average unit seats 275 plus 25 in the bar area. From the<br />
outside, each unit is different, yet all share a contemporary, fully landscaped exterior evocative of an Italian country home. The<br />
interior decor of Olive Garden restaurants is contemporary, creating a garden-like atmosphere. A number of atrium-like dining<br />
rooms are furnished with spaciously placed tables and chairs, green plants and wall murals.<br />
In 1999, Olive Garden announced a partnership with the Italian family-owned winery Rocca delle Macie. The partnership<br />
consists of two elements: Olive Garden Riserva di Fizzano, a restaurant specializing in Tuscan cuisine, and the Culinary<br />
Institute of Tuscany, where Olive Garden teams learn firsthand about Italian cooking techniques, food, wine and culture. Both<br />
are located in a restored 11th-century village on the 450-acre Riserva di Fizzano, a property owned by Rocca delle Macie that<br />
includes a 21-room inn. Rocca delle Macie is located in the hills of Tuscany near Siena. Every year, some 100 Olive Garden<br />
managers travel to Italy to enhance their culinary skills and learn about Italian wines as part of an ongoing training program. To<br />
date, more than 500 managers have trained there.<br />
Olive Garden was developed by its original parent, General Mills, Inc., opening its first unit in Orlando in 1982. In 1995,<br />
General Mills spun off its restaurant division. The new corporate name, Darden Restaurants, was selected as a way to honor<br />
the founder of Darden's other main chain, Red Lobster. Olive Garden and Red Lobster are the primary expansion vehicles for<br />
Darden Restaurants, the world’s largest casual-dining restaurant chain. Among itts other brands are Bahama Breeze, Seasons<br />
52. Darden Restaurants’ expansion plans will further accelerate Olive Garden’s growth. It is continuing to test two new<br />
prototypes that cost between $250,000–$400,000 less to build than its current model. Darden is expecting to generate topline<br />
growth while cutting costs.<br />
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published.<br />
458
<strong>Menu</strong> Positioning |<br />
Olive Garden's lunch and dinner menus feature appetizers, soups and salads, pizzas, classic recipes, meat, chicken and fish,<br />
pastas, desserts and beverages. Entrées are served with unlimited salad or minestrone soup. Signature items include garlic<br />
breadsticks and house-made pastas. Popular dishes include Eggplant Parmigiana—lightly breaded eggplant, fried and topped<br />
with marinara sauce, mozzarella and Parmesan cheese; and the Tour of Italy—house-made lasagna, lightly breaded Chicken<br />
Parmigiana and creamy Fettuccine Alfredo. Also popular is the “Create Your Own Pizza” with up to four toppings. In addition to<br />
a number of limited-time specials, newer menu additions included several entrées inspired by its Culinary Institute of Tuscany:<br />
Chianti Braised Short Ribs; Shrimp & Asparagus Risotto; Tuscan Garlic Chicken; and Braised Beef & Tortelloni. Recently,<br />
Olive Garden announced a switch to trans-fat-free frying oil. Additionally, it has changed seafood sourcing practices to address<br />
sustainability concerns. Desserts include the traditional Tiramisu; Chocolate Gelato topped with caramel sauce and dark<br />
chocolate pieces; and a no-sugar-added Torta di Chocolate, a warm double chocolate cake served with vanilla cream sauce<br />
and fresh strawberries. A “Garden Fare” menu lists lower-calorie and lower-fat options. Kids’ and takeout menus are also<br />
available. Restaurants serve imported Italian coffee for espresso and cappuccino service. Alcoholic beverages are served;<br />
expanded wine list includes broad selection imported from Italy. Specialty cocktails include Strawberry-Mango and Wild Berry<br />
Margaritas and Limoncello Lemonade—a frozen blend of lemonade, Smirnoff Citrus vodka and Caravella Limoncello, an<br />
Italian lemon liqueur. <strong>Menu</strong> prices range from $4.25–$19.75. Checks average $14.<br />
Expansion Plans |<br />
Olive Garden will open a new unit in Louisville, KY, on February 19. (Company Release 2/5/07)<br />
Darden Restaurants plans to open 35–40 Olive Gardens and four to 10 Red Lobsters over the next year. In related news, the<br />
company will also debut three to five outlets from its stable of other concepts, which include the Bahama Breeze, Smokey<br />
Bones, Rocky River Grillhouse and Seasons 52 brands. (Foodservice Equipment Reports 3/07 p20)<br />
Olive Garden is opening a new store by mid-November in Springfield, OH. The unit will have a new décor featuring a Tuscan<br />
farmhouse theme. The Springfield location will be one of two locations in the region to have the new design and will be the fifth<br />
unit in the Dayton, OH, area. The restaurant is expected to create 125–150 jobs. (Bizjournals.com 7/5/07)<br />
<strong>Menu</strong> Development |<br />
Olive Garden launched two new menu items, Chicken Roma and Asiago Chicken, for a limited time. Chicken Roma features<br />
sautéed chicken breast layered with mozzarella, provolone, Parmesan and Romano cheeses, Roma tomatoes and arugula,<br />
served with fettuccine tossed in a sun-dried tomato cheese sauce. Asiago Chicken includes grilled chicken breast layered with<br />
Asiago, mozzarella, provolone, Parmesan and Romano cheeses, roasted garlic and arugula, topped with Alfredo sauce and<br />
served with Tuscan potatoes and bell peppers. (Company Release 10/16/06; Company Website)<br />
Olive Garden introduced two new limited-time entrées, Five Cheese Stuffed Rigatoni with Chicken and Five Cheese Stuffed<br />
Rigatoni with Sausage. (Company Promotion 1/03/06)<br />
Olive Garden added two new entrées, Crab Alfredo Venezia and Steak & Portobello Mushroom Alfredo. Crab Alfredo Venezia<br />
features snow crab in a creamy seafood Alfredo sauce over spaghetti with Roma tomatoes and spinach. Steak & Portobello<br />
Mushroom Alfredo comes with grilled, marinated steak medallions tossed with fettuccine in a portobello mushroom Alfredo<br />
sauce. (Company Release 2/12/07)<br />
Olive Garden introduced Chicken Crostina to its menu for a limited time. The item is prepared with tender chicken breast<br />
marinated in olive oil and rosemary, then lightly breaded, sautéed with fresh garlic and diced Roma tomatoes in a garlic-butter<br />
sauce, and served on top of linguine pasta which is finished with breadcrumbs, shredded potatoes, herbs and Parmesan,<br />
mozzarella and Romano cheeses. (Company Release 3/28/07)<br />
Olive Garden rolled out two new Stuffed Pasta Mistos to its menu. These include Stuffed Pasta Misto with Shrimp, herbmarinated<br />
shrimp sautéed in a creamy garlic seafood sauce with cheese ravioli and tortelloni, and Stuffed Pasta Misto with<br />
Sausage, grilled Italian sausage sautéed in a basil marinara sauce with cheese-filled ravioli and tortelloni. (Company Release<br />
5/26/07)<br />
Olive Garden rolled out several new entrées. Selections include: • Grilled Shrimp Caprese—grilled, marinated shrimp over<br />
angel hair pasta with melted mozzarella, fresh basil and tomatoes in a garlic-butter sauce • Grilled Steak Caprese—grilled,<br />
marinated steak medallions topped with a balsamic glaze and served over angel hair pasta with melted mozzarella, fresh basil<br />
and tomatoes in a garlic-butter sauce • Venetian Apricot Chicken—grilled chicken breasts in an apricot citrus sauce served<br />
with broccoli, asparagus and diced tomatoes • Chicken & Gnocchi Veronese—sautéed chicken with traditional Italian<br />
dumplings and roasted red peppers in a Parmesan and ricotta cheese sauce. (Company Promo 7/02/07)<br />
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published.<br />
459
Olive Garden added Pumpkin Cheesecake to its seasonal favorites menu. The dessert, topped with whipped cream, caramel<br />
sauce and ginger cookie crumbles, is offered for $5.95. (Company Website)<br />
Olive Garden debuted its Chicken & Gnocchi Veronese entrée. The dish features sautéed chicken with traditional Italian<br />
dumplings and roasted red peppers in a Parmesan and ricotta cheese sauce. (Company Website)<br />
Olive Garden premiered five new drinks for $7.75 each. Beverage additions include: • Strawberry-Limoncello Martini—Smirnoff<br />
Citrus vodka, Caravella Limoncello and strawberries • Pomegranate Margarita Martini—Patrón Silver, Citronage orange<br />
liqueur, pomegranate syrup and fresh juices • Mango Martini—Malibu mango rum, mango purée and citrus juices • Chocolate<br />
Martini—Godiva chocolate liqueur, Smirnoff Vanilla Twist vodka and cream • Raspberry Sorbeto Martini—Smirnoff vodka,<br />
Chambord black raspberry liqueur and cream, with a float of berry sorbet (Company Website)<br />
Personnel |<br />
Clarence, Jr. Otis, CEO<br />
Brad Richmond, CFO<br />
Andrew Madsen, COO<br />
John Caron, V.P. of Marketing<br />
News & Other |<br />
Olive Garden reported October same-store sales grew 1%–2%. (Company Release 11/3/06)<br />
Darden Restaurants Inc. reported for the second quarter ended November 26 net earnings increased 17% to $61.7 million<br />
from $55.1 million for the same period last year. Revenues grew 4.5% to $1.39 billion. Same-store sales rose 2.9% at Olive<br />
Garden and 0.7% at Red Lobster. (Company Release 12/19/06)<br />
Darden Restaurants Inc. announced that its 1,267 Red Lobster and Olive Garden restaurants in North America will switch to a<br />
trans fat-free frying oil. The company did not offer a timeline for when trans fats would be eliminated from breading, salad<br />
dressings and other foods that currently contain partially hydrogenated oil. Darden also did not say whether or not its smaller<br />
chains would make the change. Over 100 Red Lobster and Olive Garden units have already switched to the trans fat-free<br />
frying oil. (NRN Daily NewsFax 12/14/06)<br />
Fish and seafood items are being removed from the menu because of concerns about the sustainability of certain species.<br />
According to a recent report in Science from leading ecologists and economists, it was theorized that the world would run out<br />
of seafood by 2048 if declines in marine species continue at the current rate. The report said that overfishing, pollution and<br />
other environmental factors are destroying wild fisheries and threatening the ocean’s ecological balance. The seafood industry<br />
has said that the study is too alarmist. Many restaurants, however, are making adjustments. Darden Restaurants, which owns<br />
Red Lobster, Olive Garden, Smokey Bones and Bahama Breeze brands, and Compass Group’s America division have both<br />
declared changes in seafood purchasing habits based on sustainability concerns. The study also found that nearly one-third of<br />
commercially fished species have already been depleted to the point where catches are now only 10% of historic highs. These<br />
include bluefin tuna, Atlantic cod, Pacific salmon and Alaskan king crab. The study also says that it is not too late to reverse<br />
the trends. Several environmental groups are working to help consumers, restaurants, distributors and retail stores make<br />
responsible choices. (Nation’s Restaurant News 11/27/06 p1)<br />
Olive Garden reported December same-store sales increased 1%. (Company Release 1/4/07)<br />
Olive Garden is being sued by guests who ate at an Indiana unit where a norovirus outbreak sickened almost 400 customers.<br />
The lawsuit alleges negligence and breach of warranty on the part of the restaurant’s owners, Darden Restaurants Inc. The<br />
restaurant in question was closed for three days after several guests fell ill with flu-like symptoms. Three Olive Garden<br />
employees tested positive for norovirus. (NRN Daily NewsFax 12/21/06)<br />
Olive Garden reported January same-store sales rose 2%. (Company Release 2/1/07)<br />
Olive Garden has achieved 50 consecutive quarters of same-store sales growth. The growth is a milestone for the restaurant<br />
and the casual dining industry. Olive Garden is currently the leading restaurant in the Italian dining segment with more than<br />
$2.6 billion in annual sales. (Company Release 3/22/07)<br />
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460
Olive Garden is a brand leader when it comes to customer service according to a recent poll. The chain, owned by Darden<br />
Restaurant Inc., was ranked highest in the full-service restaurant category in online opinion polls conducted by<br />
RealPeopleRatings.com. Olive Garden joins the likes of Nordstrom, Footlocker, and Southwest Airlines as a customer service<br />
leader in its business category. (bizjournals.com 10/29/07)<br />
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published.<br />
461
On The Border Mexican Grill & Cantina<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972)980-9917 Fax: (972)770-9593<br />
www.ontheborder.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 453,000 419,947 397,872<br />
Company-owned ($000) 388,000 362,568 344,936<br />
Franchised ($000) 65,000 57,379 52,936<br />
U.S. Number of Units 151 141 131<br />
Company-owned 128 122 113<br />
Franchised 23 19 18<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,100 3,000 2,900<br />
Concept Positioning |<br />
On The Border Mexican Grill & Cantina is a chain of casual-dining restaurants that specializes in Mexican fare and specialty<br />
margaritas. Its mesquite-grilled entrées, desserts and traditional Tex-Mex appetizers are served in generous portions at<br />
modest prices. Dallas-based Brinker International Inc. operates more than 160 On The Border restaurants nationwide.<br />
Units average 6,500–7,200 sq. ft. with seating for 220–240 and outdoor patio seating for up to 100 patrons. Expansive ceilingto-floor<br />
windows with transoms and skylights provide the units with a light and open feeling of border town haciendas. Guests<br />
enjoy a Texas/Mexican border atmosphere filled with exposed brick, cactus and artifacts while watching fresh-cooked flour<br />
tortillas being flame-grilled. Larger prototypes seat 275 patrons and the revamped interior features a more expansive bar area<br />
with mounted plasma-screen TVs, brighter colors and an open fajita grill. Stores serve lunch and dinner seven days a week.<br />
Restaurants also include a “To Go” entrance and parking, an update that recognizes its growing carry-out business.<br />
The first On The Border restaurant opened in Dallas in 1982 and the company incorporated in 1989. An initial public stock<br />
offering was completed in 1992. In May 1994, Brinker International acquired the company for a $32 million stock swap. Future<br />
expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
On The Border's menu features appetizers, soups and salads, fajitas, shrimp and seafood, burritos, chimichangas, favorites,<br />
create-your-own combos, desserts and beverages. Its signature items include mesquite-grilled chicken, buffalo, steak or<br />
shrimp fajitas and original recipe Mexican entrées. Some of the chain's most popular appetizers include Smoked Chicken<br />
Quesadillas, On The Border Nachos, Guacamole Live, Chile Con Queso and Chicken Flautas. Newer menu items include the<br />
Shaken Margarita Shrimp Cocktail, Margarita Chicken, Bacon-Wrapped Shrimp and a revamped On The Border Kids' menu.<br />
The “Off The Grill” section of the menu features favorites such as Red Chile Ribeye—a 12-oz. ribeye seasoned with garlicchile<br />
spices, served over grilled onions with vegetables and cheesy Pepper Jack mashed potatoes; Pico Chicken & Shrimp—<br />
mesquite-grilled chicken with pico de gallo, garlic cilantro sauce, Jack cheese and four large sautéed shrimp; and<br />
Ranchiladas—fajita steak topped with ranchero sauce and Jack cheese, with two cheese and onion enchiladas with chile con<br />
carne. Full liquor service is available and includes margaritas, beer and wine and non-alcoholic favorites. Takeout and kids’<br />
menus are available. <strong>Menu</strong> prices range from $.29–$14.99. Checks average $15.47.<br />
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published.<br />
462
Expansion Plans |<br />
On The Border Mexican Grill & Cantina plans to re-enter the Houston market with its first location opening this week in Spring<br />
Cypress. (Bizjournals.com 11/27/06)<br />
On The Border Mexican Grill & Cantina is re-entering metropolitan Houston, where it plans to open several new locations. The<br />
Brinker International-owned chain had units in the Houston market several years ago but later closed them all. On The Border<br />
is using a re-tooled prototype at these locations. On The Border has 144 restaurants in 32 states. (Houston Business Journal<br />
11/27/06)<br />
Promotion Plans |<br />
On The Border is airing its first TV commercials in two years as part of its new advertising campaign. The 30-second ad,<br />
featuring the campaign’s theme, “Why? Because You Can,” shows traditional Mexican masks that talk. The ads will air in<br />
Texas, Oklahoma, Tennessee and Arizona markets and will be reinforced through radio, online and cinema advertising.<br />
(Nation’s Restaurant News Online 7/13/07)<br />
<strong>Menu</strong> Development |<br />
On the Border has added several new dishes, including some prepared tableside. New selections are Queso Live!, creamy<br />
melted cheese prepared at the table with a guest’s favorite ingredients; Guacamole Live!, made at the table with fresh<br />
avocados and a choice of seasonings; Create Your Own Combo, mixing and matching Mexican favorites to create a meal;<br />
Build Your Own Burrito, which allows guests to pick from among burrito styles, fillings, sauces, meats and a choice of side;<br />
and Margarita Selects, inviting guests to create their own margarita from two liquors and eight premium tequilas. (Company<br />
Website)<br />
On the Border introduced Surf & Turf Fajitas, featuring steak served alongside giant shrimp and sautéed vegetables.<br />
(Company Website)<br />
Franchise Activity |<br />
Brinker International inked a deal with Shoot the Moon LLC to develop five On The Border Mexican Grill & Cantina outlets in<br />
southern Idaho, Montana and Utah. The franchisee also purchased an existing restaurant in Boise, ID, as part of the<br />
agreement. This is an extension of a previous deal between Brinker and Shoot the Moon; the two signed an agreement last<br />
year to develop several Chili’s Grill & Bar and Romano’s Macaroni Grill restaurants in the Northwest. (NRN Daily NewsFax<br />
4/04/07; Foodservice Equipment & Supplies 4/04/07; Company Release 4/03/07)<br />
Personnel |<br />
W. Scott Harrison, V.P. of Finance<br />
David M. Orenstein, CEO<br />
Dennis J. Weese, COO<br />
Rebecca Johnson, V.P. of Marketing<br />
Lisa S. Warren, V.P. of Development<br />
News & Other |<br />
On the Border Mexican Grill & Cantina reported October same-store sales decreased 4.9%. (Company Release 11/8/06)<br />
On The Border Mexican Grill & Cantina reported November same-store sales decreased 4.4%. (NRN Daily NewsFax 12/8/06)<br />
On The Border Mexican Grill & Cantina reported January same-store sales declined 5.4%. (NRN Daily NewsFax 2/8/07)<br />
Brinker International Inc. reported February same-store sales declined 5.1% at Chili’s Grill & Bar, 4.1% at Romano’s Macaroni<br />
Grill, 4.1% at Maggiano’s Little Italy and 5.5% at On The Border. (NRN Daily NewsFax 3/8/07)<br />
Brinker International Inc. reported May same-store sales fell 3% at Chili’s, 4.2% at On The Border, 2.1% at Romano’s<br />
Macaroni Grill and 1.5% at Maggiano’s. In addition, stock shares fell 70¢ to close at $32.34. (Associated Press 6/6/07)<br />
463<br />
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published.
Original Pancake House, The<br />
Headquarters<br />
8601 SW 24 Avenue, Portland, Oregon 97219 USA<br />
Tel: (503)246-1049 Fax: (503)245-2396<br />
www.originalpancakehouse.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 126,850 118,800 102,250<br />
Company-owned ($000) 1,350 1,300 1,250<br />
Franchised ($000) 125,500 117,500 101,000<br />
U.S. Number of Units 109 105 99<br />
Company-owned 1 1 1<br />
Franchised 108 104 98<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,185 1,150 1,125<br />
Concept Positioning |<br />
The Original Pancake House is a full-service restaurant specializing in breakfast foods. Restaurants are open from early<br />
morning until mid-afternoon, and the house specialty is the restaurant's famous pancakes. Its most popular pancake items<br />
include the Dutch Baby and Apple Pancake. The restaurant differs itself from other concepts with its high-quality ingredients<br />
and its own sourdough-starter recipe. The restaurant only uses the finest ingredients: 93-score butter, pure whipping cream,<br />
fresh grade AA eggs and hard wheat unbleached flour. All of the restaurants’ batters and sauces are made fresh each day.<br />
With more than 100 units scattered across the country, The Original Pancake House Franchising Inc. operates a nearly 100%-<br />
franchised system of stores. All franchised units are independently owned.<br />
Units are mostly freestanding and feature interiors similar to that of a diner. Seating is available for approximately 200<br />
customers in a space averaging 3,000 sq. ft. Décor does vary from restaurant to restaurant, though the original restaurant was<br />
decorated with pine-paneled walls accented with display plates. Unique design elements include working stone fireplaces in<br />
select units. Some units also feature an open kitchen that allows guests to observe the chefs at work.<br />
Drawing upon their knowledge of authentic national and ethnic pancake recipes, Les Highet and Erma Hueneke founded the<br />
Original Pancake House in Portland, OR, in 1953. Growth has been achieved via franchising.<br />
<strong>Menu</strong> Positioning |<br />
Serving breakfast and lunch, The Original Pancake House offers one menu that showcases a wide variety of traditional<br />
American and European-influenced breakfast cuisine. Its signature item is pancakes, notably the Apple Pancake, a large<br />
oven-baked pancake smothered in sautéed cinnamon sugar apples. The chain is also known for its egg-rich and powder-sugar<br />
coated Dutch Baby—an oven-baked specialty served with whipped butter, lemon and powdered sugar. The restaurant<br />
menusenus typical breakfast and brunch fare, including crepes—most notably its Danish Kijafa Cherry Crepes, omelets,<br />
Belgian waffles and hot and cold cereal. Sides include eggs, bacon, sausage, ham, hash browns, oatmeal, fresh fruit,<br />
applesauce, compotes and cream. <strong>Menu</strong> prices range from $3.29–$8.00 for pancakes and crepes, $4.79–$6.89 for waffles<br />
and $4.99–$8.74 for omelets and eggs. Checks average $9.<br />
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published.<br />
464
Personnel |<br />
Ronald Highet, CEO<br />
Ann Liss, Treasurer<br />
John Liss, Executive Chef/Purchasing/Marketing<br />
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465
Outback Steakhouse<br />
Headquarters<br />
2202 N. Westshore Blvd. 5th FL, Tampa, Florida 33607 USA<br />
Tel: (813)282-1225 Fax: (813)282-1209<br />
www.outback.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,619,000 2,599,000 2,539,000<br />
Company-owned ($000) 2,260,000 2,237,000 2,198,000<br />
Franchised ($000) 359,000 362,000 341,000<br />
U.S. Number of Units 786 775 756<br />
Company-owned 679 671 652<br />
Franchised 107 104 104<br />
International Sales ($000) 414,000 361,000 276,000<br />
International Units 162 140 125<br />
Average Sales/Unit ($000) 3,348 3,425 3,465<br />
Concept Positioning |<br />
Outback Steakhouse is an Australian steakhouse concept open for dinner only. Although beef and steak items make up a<br />
good portion of the menu, the full-service concept offers a variety of chicken, ribs, seafood and pasta dishes. The company<br />
differentiates itself by offering generous portions at moderate prices and a casual atmosphere suggestive of the Australian<br />
Outback. OSI Restaurant Partners Inc. owns and operates Outback Steakhouse units throughout the U.S. The company also<br />
operates, through joint-venture and franchise agreements, additional Outback restaurants, including international locations. By<br />
far the largest and most profitable international growth area is South Korea, where Outback has more than 50 restaurants.<br />
Units are typically freestanding and located in high-traffic areas such as strip shopping centers. The average Outback<br />
restaurant measures 6,000 sq. ft., including dining room seating for 200 plus an island bar. Décor evokes the rugged<br />
Australian Outback and includes blond woods, large booths and tables, mounted boomerangs, surfboards, maps and flags.<br />
The units are open seven nights a week. OSI Restaurant Partners is currently implementing several initiatives to reignite<br />
interest in Outback Steakhouse with women and younger diners. Changes include an interior design makeover at all of its<br />
locations nationwide and the creation of a broader menu with healthier options.<br />
Outback was founded in 1988 in Tampa, FL, by Chris Sullivan, Robert D. Basham, Tim Gannon and Trudy Cooper. Originally<br />
incorporated as Multi-Venture Partners, Inc., the company changed its name to Outback Steakhouse and made an initial<br />
public offering in 1991. Outback grew in following years with the acquisition of various casual-dining brands, such as<br />
Carrabba’s Italian Grill in 1995 and Chi Chi’s Mexican Restaurant in 2004. In 2006, Outback Steakhouse announced a<br />
company name change to OSI Restaurant Partners, Inc.; the New York Stock Exchange trading symbol remains OSI. OSI<br />
Restaurant Partners went private in 2007 in a deal valued at $3.2 billion, including debt. Outback chairman Chris Sullivan led<br />
an investor group that included Bain Capital Partners, Catterton Partners and company founders Robert Basham and J.<br />
Timothy Gannon to take the company private. In addition to its Outback restaurants, OSI owns and operates units of<br />
Carrabba's Italian Grill, Lee Roy Selmon's, Cheeseburger in Paradise and Bonefish Grill, and has joint-venture and franchise<br />
agreements for additional Carrabba's Italian Grill locations and Fleming's Prime Steakhouse & Wine Bar. In 2006, Outback<br />
announced plans to launch a new high-end seafood concept called Blue Coral Seafood & Spirits, with the first unit in Newport<br />
Beach, CA. Currently operating two units, Blue Coral is a joint venture between Outback and restaurant developer Paul<br />
Fleming, who owns 25% of the new concept. OSI also has a joint-venture development relationship with Roy Yamaguchi, the<br />
chef and creator of Roy's Restaurants located in Hawaii, the U.S. mainland and Japan.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
466
<strong>Menu</strong> Positioning |<br />
Outback Steakhouse specializes in high-quality, uniquely seasoned steaks, prime rib, chops, ribs, chicken, seafood, and<br />
pasta. All Outback Steakhouse dishes are made from scratch every day. Purchasing is negotiated directly with suppliers to<br />
ensure uniform quality. Franchisees purchase all food and beverage products from authorized suppliers. House specialties<br />
include the signature “Bloomin’ Onion” and other “Aussie-Tizers” as well as the dessert selection. The menu features<br />
appetizers, soups and salads, chicken, steak, ribs, seafood, favorites, sides, desserts and beverages. Popular menu items<br />
include Steakhouse Salad—seasoned and seared sirloin with mixed greens, tomato, red onions, cinnamon pecans, special<br />
Aussie crunch and homemade crumbled bleu cheese vinaigrette; Boomerang Shrimp—battered and breaded shrimp, fried and<br />
served with Aussie Chips, tartar and Aboriginal fire sauces; Alice Springs Chicken—grilled chicken breast and bacon with<br />
mushrooms, melted Monterey Jack and Cheddar cheeses and honey mustard sauce, served with Aussie chips; and<br />
Toowoomba Pasta—fettuccine Alfredo with seasoned shrimp, crawfish, mushrooms and Parmesan. Steaks include 14-oz.<br />
Rockhampton Rib-Eye; 7-oz. Victoria’s “Center Cut” Filet; 12-oz. Outback Style Prime Rib or 8-oz. Prime Minister’s Prime Rib;<br />
14-oz. Ayers Rock Strip; and The Melbourne, a 20-oz. Porterhouse. Customers can add a lobster tail or five grilled shrimp for<br />
a moderate price. Sides range from steamed vegetables and grilled onions to Aussie chips and Bleu Cheese Chopped Salad.<br />
Newer menu items include Bronzed Chicken with Corn Cakes—bronzed chicken breast served with grilled corn cakes, topped<br />
with shrimp and mushrooms in a Vermouth cream sauce; Victoria's Crowned Filet—a sevenine- or 9-oz. tenderloin topped with<br />
bleu cheese or horseradish crumb crust; Hearts of Gold Chicken—bronzed seasoned chicken breast topped with artichoke<br />
hearts, sun-dried tomatoes and green onions in a light lemon Alfredo sauce, served with fresh steamed vegetables; Hearts of<br />
Gold Fresh Catch—bronzed fresh fillet topped with sautéed artichokes, sun-dried tomatoes and green onions in a light lemon<br />
Alfredo sauce; and Cyclone Pasta—penne pasta in Alfredo sauce tossed with sliced grilled chicken, tasso ham, sun-dried<br />
tomatoes, shiitake mushrooms, fresh basil and garlic, topped with Gouda, provolone and Parmesan cheeses. Outback<br />
Steakhouse offers a wide variety of beverages, including full liquor service featuring Australian beer and wine. Kids’ and<br />
takeout menus are available. <strong>Menu</strong> prices range from $2.29–$23.69. Checks average $18.<br />
Promotion Plans |<br />
OSI Restaurant Partners Inc. has awarded media duties for its Outback Steakhouse and Carrabba’s Italian Grill restaurants to<br />
Aegis Group’s Carat of New York. Media buying and planning for the two chains, worth $90 million, had previously been split<br />
between MPG and Doner. (Nation’s Restaurant News 10/29/07)<br />
<strong>Menu</strong> Development |<br />
Casual dining chains are adding more upscale fare to appeal to a more sophisticated customer base. Red Lobster recently<br />
added a fresh-fish menu, which includes the entrée Maui Laui Shrimp and Salmon, with skewered jumbo shrimp and fresh<br />
salmon fire-grilled and brushed with sweet and spicy glaze. Outback Steakhouse locations offer a Seared Ahi Tuna Appetizer,<br />
with sashimi-grade yellowfin seasoned and seared and served with sides of soy dressing and wasabi vinaigrette. At Chili’s,<br />
guests can dine on Southwest Cedar-Plank Tilapia, featuring a seasoned tilapia fillet, cooked and served on a cedar plank and<br />
finished with a chimichurri sauce and pico de gallo. (Wall Street Journal Online 12/28/06)<br />
Outback Steakhouse added several new selections to its menu. New items include: • Dijon Chicken & Bacon Lettuce Wraps–<br />
chicken, bacon, basil, carrots and red peppers topped with sweet Dijon vinaigrette and stuffed into a Bibb lettuce wrapper •<br />
Seared Ahi Tuna–sashimi-style yellow fin tuna, spice-rubbed and seared, with a sides of soy dressing and wasabi vinaigrette •<br />
Seasoned Alaskan King Crab–1 ¼ lb. of Alaskan king crab legs served with a Signature Side Salad and choice of side dish •<br />
Hickory Burger–1/2-lb. beef patty topped with hickory sauce, tomato, smoked Cheddar, lettuce, bacon, mayo and sweet<br />
sautéed onions • Hot Apple Pecan Cobbler–apples, toasted rolled oats, pecans and cinnamon, baked and topped with vanilla<br />
ice cream and hot homemade apple-butter sauce • Top Shelf Patrón 'Rita–Patrón Silver 100% Agave Tequila, Grand Marnier<br />
and Cointreau, shaken with lime, lemon and orange juices and served on the rocks or straight up. (Company <strong>Menu</strong>)<br />
Outback Steakhouse introduced a Coral Reef Crab Dip, with sweet Pacific Rim crabmeat, smoked Gouda and Parmesan<br />
cheeses, corn and red peppers, baked until golden and served with honey-wheat toasts. (Company Website)<br />
Takeout continues to grow as a popular alternative at fast-casual and casual-dining restaurants. According to a National<br />
Restaurant Association survey, more than nine in 10 family dining and casual-dining restaurants as well as three-quarters of<br />
fine-dining locations offer takeout. Forty-seven percent of casual-dining restaurants expect to see their takeout business grow<br />
in 2007. In St. Simons Island, GA, Coastal Kitchen Seafood & Raw Bar, an upscale restaurant, serves takeout meals to<br />
customers who want to dine on their boats. All of the 801 Outback Steakhouses offer curbside takeout, which will account for<br />
almost 12% of sales this year. Old Ebbitt Grill, a white-tablecloth institution catering to Washington, D.C., dignitaries, serves<br />
about 100,000 takeout meals a year. (USAToday.com 6/12/07)<br />
Outback Steakhouse added two entrées for autumn. Selections include Slow-Roasted Top Cap Sirloin with Fall Harvest<br />
Veggies and au gratin potatoes, and Season’s Best Fresh Catch, a tender fish fillet with a crab topping. (Company Website)<br />
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467
International Activities |<br />
Outback Steakhouse International LP purchased the remaining 18% interest from three minority shareholders in Aussie Chung<br />
Ltd., the company that operates its South Korean restaurants. The agreement is valued at $34.8 million and includes $17.8<br />
million that was paid in cash to the sellers, $14 million to satisfy outstanding loans made to the sellers by the company and $3<br />
million that was placed in an interest-bearing escrow account. (Tampa Bay Business Journal 11/16/06)<br />
Personnel |<br />
Richard Renninger, S.V.P. of Real Estate & Development<br />
A. William, III Allen, CEO<br />
Dirk A. Montgomery, CFO<br />
Irene Wenzel, V.P. of Purchasing<br />
Paul Avery, COO<br />
Jody L. Bilney, CMO<br />
Outback Steakhouse president Curt Glowacki has resigned for personal reasons. (NRN Daily NewsFax 4/2/07)<br />
News & Other |<br />
OSI Restaurant Partners Inc. will be acquired by Bain Capital Partners, Catterton Partners and Outback Steakhouse cofounders<br />
for about $3.2 billion. OSI is the owner of several brands including Outback Steakhouse, Carrabba’s Italian Grill and<br />
Cheeseburger in Paradise. The deal will close early next year and will take OSI Restaurant Partners private. (Wall Street<br />
Journal 11/07/06; NRN Daily NewsFax 11/07/06; Nation’s Restaurant News Online 11/09/06)<br />
Lee Roy Selmon’s, a five-unit casual-dining dinnerhouse concept, is expanding in Florida with a planned opening in East<br />
Manatee, FL, in January 2007. Named for former Tampa Bay Buccaneers football player Lee Roy Selmon, the restaurant<br />
features home-style American fare such as barbecue, fried green tomatoes and other Southern-influenced favorites. Floridabased<br />
Lee Roy Selmon’s is part of the OSI Restaurant Partners Inc. group of restaurant brands that includes Outback<br />
Steakhouse, Roy’s and Bonefish Grill. (Bradenton Herald.com, 10/25/06)<br />
Outback Steakhouse reported for the fourth quarter ended December 31 same-store sales increased 0.6%. (Company<br />
Release 2/1/07)<br />
OSI Restaurant Partners Inc. reported for the quarter ended March 31 same-store sales system-wide declined 0.5% at<br />
Outback Steakhouse, 1.3% at Carrabba’s Italian Grills, 0.7% at Bonefish Grills, 2.1% at Roy’s and rose 3.3% at Fleming’s<br />
Prime Steakhouse and Wine Bars. For the five weeks ended March 31, same-store sales system-wide fell 0.1% at Outback<br />
Steakhouse, 0.7% at Carrabba’s Italian Grills, 1% at Bonefish Grills, and 1.6% at Roy’s, and grew 0.7% at Fleming’s Prime<br />
Steakhouse and Wine Bars. (Company Release 4/5/07)<br />
OSI Restaurant Partners Inc. reported April same-store sales grew 1% at Outback Steakhouse, 1.1% at Carrabba’s Italian<br />
Grill, 1.9% at Fleming’s Prime Steakhouse & Wine Bar, 0.7% at Bonefish Grill and 0.8% at Roy’s. (NRN Daily NewsFax<br />
5/4/07)<br />
OSI Restaurant Partners Inc. reported May same-store sales declined 1.4% at Outback Steakhouse, 2.1% at Carrabba’s<br />
Italian Grill, 2.0% at Bonefish Grill and 0.9% at Roy’s. Fleming’s Prime Steakhouse and Wine Bars’ same-store sales rose<br />
1.2%. (Associated Press 5/30/07)<br />
OSI Restaurant Partners, Outback Steakhouse and Carrabba’s Italian Grill restaurants have placed their media buying and<br />
planning account, worth $90 million, in review. Currently, the work is split between MPG and Doner. (OmmaComa.com<br />
6/18/07)<br />
Gluten-free menu items are becoming more common in restaurants as the foodservice industry becomes increasingly aware of<br />
special dietary needs. Eat’n Park, Outback Steakhouse and P.F. Chang’s China Bistro all have expanded their menus to<br />
include wheat-free, vegetarian and vegan options. (Pittsburgh Post-Gazette Online 7/19/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
468
P.F. Chang's China Bistro<br />
Headquarters<br />
7676 E. Pinnacle Peak RD, Scottsdale, Arizona 85255 USA<br />
Tel: (480)888-3000 Fax: (480)888-3001<br />
www.pfchangs.com<br />
Ownership: Private<br />
Segment: Full Service Asian/Noodle<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 757,695 675,204 611,469<br />
Company-owned ($000) 756,539 675,204 611,469<br />
Franchised ($000) 1,156 - -<br />
U.S. Number of Units 153 131 115<br />
Company-owned 152 131 115<br />
Franchised 1 - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,952 5,603 5,665<br />
Concept Positioning |<br />
P.F. Chang’s China Bistro is a full-service Chinese concept that combines a traditional Chinese menu with a Western-style<br />
bistro atmosphere. <strong>Menu</strong> items are made from scratch and are served family style to allow guests to build a lunch or dinner<br />
meal of complementary flavors. P.F. Chang’s China Bistro Inc. is the parent company and sole operator of the 152 P.F.<br />
Chang’s restaurants in the U.S.<br />
Units average 6,000–7,000 sq. ft. and seat approximately 145–260. Restaurants are primarily freestanding, though a few units<br />
are located in malls. Takeout service is available. The upscale, contemporary atmosphere is complemented by large handpainted<br />
murals depicting 12th-century China and replicas of ancient Chinese statues including life-size terra cotta replicas of<br />
Xi’an warriors. Units feature display kitchens and exhibition wok cooking. Other design elements, such as hardwood and slate<br />
floors, millwork, textured walls and high-tech lighting, are unusual for Chinese restaurants.<br />
P.F. Chang’s was founded in 1993 under the direction of Paul Fleming of Fleming Restaurants, in collaboration with Philip<br />
Chiang. In 1998, the company completed an initial public offering. In 2000, P.F. Chang’s developed a quick-casual concept<br />
called Pei Wei's Asian Diner. In 2006, the company debuted Taneko Japanese Tavern.<br />
<strong>Menu</strong> Positioning |<br />
P.F. Chang's menu features appetizers, soups and salads, vegetarian plates, traditional Chinese dishes, desserts and<br />
beverages. The chain strives to create new dishes inspired by various provinces of China, making use of ingredients such as<br />
tofu, cod, lamb and noodles. Specialties include Chang's Spicy Chicken, Oolong Marinated Sea Bass and Mongolian Beef.<br />
Other favorites include Crispy Honey Shrimp, Seared Ahi Tuna, Coconut Curry Vegetables and Orange Peel Beef. Alcoholic<br />
beverages are available. <strong>Menu</strong> prices range from $4.95–$15.95 and checks average $17.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
469
Expansion Plans |<br />
P.F. Chang’s China Bistro will open a new restaurant in Charlotte, NC, in June. The unit will be located at the Northlake Mall.<br />
(Company Release 12/20/06)<br />
Pei Wei Asian Diner opened its first Michigan outlet in Sterling Heights. The chain is a faster and cheaper version of its sister<br />
restaurant, P.F. Chang’s China Bistro. Meals at Pei Wei are cooked to order in 600-degree woks in an exhibition kitchen.<br />
There are currently more than 77 Pei Wei units nationwide. (Detroit Free Press 1/08/07)<br />
P.F. Chang’s China Bistro will slow expansion of its P.F. Chang’s China Bistro and Pei Wei concepts, and will not expand its<br />
Taneko Japanese Tavern concept. The company plans to add 19 new P.F. Chang’s China Bistro restaurants and 37 Pei Wei<br />
restaurants in 2007. Three expansion deals for 2008 have been scrapped and two opening that were planned for 2008 might<br />
move to late 2007. (Globest.com 7/26/07)<br />
<strong>Menu</strong> Development |<br />
P.F. Chang’s China Bistro has added to its menu Lucky 8, a dessert prepared with crisp-fried won ton cigars filled with<br />
chocolate crème and accompanied by sweet, creamy sauce and crunchy almond toffee. (Restaurants & Institutions 09/15/06<br />
p20)<br />
P.F. Chang’s China Bistro Inc. introduced its new “The Flavors of Yunnan” menu. The menu introduces new dishes that<br />
highlight the diversity of Chinese cooking such as Yunnan Wontons, Wok Charred Beef, Zodiac Noodles and Dali Chicken.<br />
The items will be available from February 18 until September. (Company Release 1/31/07)<br />
P.F. Chang’s China Bistro debuted new selections, including Chengdu Spiced Lamb, spiced marinated lamb which is wokcaramelized<br />
and then mixed with cumin, mint, tomatoes and yellow onions; Shrimp with Candied Walnuts, shrimp tossed in a<br />
creamy sauce with honeydew melon; and Tam’s Noodles with Savory Beef and Shrimp, gnocchi-style noodles stir-fried with<br />
shrimp, chili peppers and sliced beef in abalone sauce. (Company <strong>Menu</strong>)<br />
Shrimp has gown in popularity in recent years, leading operators to add more shrimp dishes to meet the demand. This<br />
summer, several operators are rolling out shrimp salads. At The Beacon in Sag Harbor, NY, guests can dine on Chef Sam<br />
McCleland’s chopped salad with romaine and radicchio with crispy shrimp and a peanut-ginger dressing. In Blue Bell, PA, at<br />
Alison at Blue Bell, Chef Alison Barshak prepares a shrimp salad with salsa fresca of diced white onion, plum tomatoes,<br />
Serrano peppers, tomato juice, cilantro, lime juice, black beans and salt. P.F. Chang’s China Bistro menus a shrimp salad with<br />
marinated and wok-fried shrimp mixed with seasonal greens, candied papaya, grape tomatoes, red bell pepper, herbs and<br />
pine nuts and tossed in a spicy creamy dressing prepared with spicy Sriracha sauce. Pei Wei Asian Diner offered for a limited<br />
time a Thai Dynamite Shrimp Salad, with sweet soy, Sriracha and fresh lime-flavored shrimp mixed with baby greens, long<br />
beans, Japanese cucumbers and Thai basil. (Nation’s Restaurant News Online 6/18/07)<br />
Personnel |<br />
Bob Tam, Executive Culinary Chef<br />
Richard Federico, CEO<br />
Mark Mumford, CFO<br />
Gary Schwartz, V.P. of Purchasing<br />
Tim McDougal, V.P. of Marketing<br />
News & Other |<br />
P.F. Chang’s China Bistro reported for the fourth quarter ended December 31 same-store sales declined 0.9%. (Company<br />
Release 1/4/07)<br />
P.F. Chang’s China Bistro Inc. reported for the first quarter ended April 1, revenues increased 16% to $264.4 million from<br />
$228.6 million for the same period last year. Same-store sales decreased 2.5% at the Bistro and increased 0.5% at Pei Wei.<br />
(Company Release 4/4/07)<br />
Gluten-free menu items are becoming more common in restaurants as the foodservice industry becomes increasingly aware of<br />
special dietary needs. Eat’n Park, Outback Steakhouse and P.F. Chang’s China Bistro all have expanded their menus to<br />
include wheat-free, vegetarian and vegan options. (Pittsburgh Post-Gazette Online 7/19/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
470
P.F. Chang’s China Bistro Inc. CEO Richard Federico has bought 9,000 shares of the company’s common stock, according to<br />
an SEC filing November 7. (Yahoo! Finance 11/8/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
471
Palm Restaurant<br />
Headquarters<br />
1730 Rhode Island Ave. NW Suite 900, Washington, DC 20036 USA<br />
Tel: (202)775-7256 Fax: (202)775-9153<br />
www.thepalm.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 140,000 143,000 134,000<br />
Company-owned ($000) 140,000 143,000 134,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 28 29 27<br />
Company-owned 28 29 27<br />
Franchised - - -<br />
International Sales ($000) 3,600 3,500 7,000<br />
International Units 1 1 2<br />
Average Sales/Unit ($000) 4,900 4,700 4,900<br />
Concept Positioning |<br />
The Palm Restaurant is a chain of full-service, upscale restaurants specializing in steak and lobster. Units are open for lunch<br />
and dinner Monday through Friday, and dinner-only Saturday evenings. All units are located in major metropolitan markets.<br />
The restaurants draw from both a local and convention-going/traveler-oriented clientele. The Palm is also the oldest familyowned,<br />
white tablecloth restaurant.<br />
Palm Management operates in about 25 major U.S. markets, Mexico and Puerto Rico. The company also runs its own<br />
wholesale meat company. The atmosphere is brash and bustling with sawdust-covered floors. Walls are covered with<br />
caricatures of local notables and national celebrities.<br />
Pio Bozzi and John Ganzi opened the first Palm in New York City in 1926. Originally, the duo specialized in Italian foods from<br />
their native Parma, Italy areas. Steaks were added early on but third generation owners, Wally Ganzi and Bruce Bozzi,<br />
originated its reputation for seafood in the 1970s by introducing 4–8 lb. lobsters to the menu. The latter duo is also credited<br />
with expanding the concept beyond its New York base. In 1973, the duo’s third restaurant, the Palm Too, was opened right<br />
across the street from the original to help accommodate the overflow from the first Palm. In 2000, the restaurant added a<br />
customer-loyalty program, the 837 Club, named after the first Palm Restaurant’s address: 837 Second Avenue in New York.<br />
Rewards range from gift certificates to trips to the Colony Beach and Tennis Resort. Future expansion has not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
The Palm specializes in a full-service menu of Italian-inspired entrées, steaks and seafood. Its signature items are it Double<br />
Steak—36-oz. New York Strip for two; and Jumbo Maine Lobsters—three pounds or larger. The Palm also offers fresh<br />
seafood such as crab cakes, swordfish, salmon, shrimp as well as chicken, veal, lamb and pasta entrées. Sides include freshly<br />
prepared vegetable-based dishes such as broccoli, creamed spinach and green beans; salads such as sliced tomato and<br />
onion or Monday Night Salad and potatoes including its signature Half and Half—half cottage fries, half fried onions. Full liquor<br />
service is available. Entrée prices vary at each restaurant but range from $10–$24 for lunch and $16.50–$38 for dinner.<br />
Checks average $30 for lunch and $77 for dinner.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
472
Personnel |<br />
Brian McCardle, Executive Chef<br />
Randy Goldman, Director of Marketing<br />
Michael Ronan, Director of Purchasing<br />
Jeff Phillips, S.V.P. of Operations<br />
Bruce Bozzi, CEO<br />
Wally Ganzi, CEO<br />
James Longo, CFO<br />
News & Other |<br />
Martini Park, developed by former Palm Restaurant president Alfred Thimm Jr., will debut its first unit in Dallas by year’s end.<br />
The small-plates lounge concept will feature live entertainment and DJ music. Its décor will include a stage for entertainment,<br />
an elevated VIP lounge and a casual patio bar in a 7,000-sq.ft. space. Martini Park’s menu will offer crab cake corn dogs, surf<br />
or turf nachos and miniburgers as well as steak and lamb chops. Another location is expected to open in Chicago in 2007.<br />
(Nation’s Restaurant News 11/20/06 p8)<br />
The key consumer trend toward snacking is evidenced in diverse ways in different restaurant segments. Limited-service<br />
operators are adding more handheld snack items to the menu or exploring new dayparts. In full-service, the snacking trend is<br />
expressed as the proliferation of “small plates,” which lend themselves to less traditional dining occasions, offer a variety of<br />
flavors at a reasonable price and thus encourage experimentation and sharing. More and more new concepts are built entirely<br />
around “small plate” presentations. One is Martini Park, a Dallas-area cocktail-lounge concept that opened in December in The<br />
Shops at Legacy in suburban Plano, TX. As the name implies, Martini Park showcases its cocktails along with a whimsical,<br />
multi-ethnic small-plate menu, live entertainment and DJ music. Target customers for the concept are adults in their late 20s<br />
through 50s. January’s music schedule included a Beatles tribute band as well as one called The Grateful Geezers.) The<br />
7,500-sq.ft. Martini Park, designed by Jeffrey Beers in tones of blond wood, deep reds and blues, features an elevated stage<br />
for live entertainment, a spacious, elevated round bar and lounge with a DJ booth, and a casual patio bar. A closer look at the<br />
menu reveals: Small Plates •Tomatoes Capri—baby mozzarella, sweet grape tomatoes and garden-fresh basil on rosemary<br />
skewers, drizzled with balsamic reduction and extra virgin olive oil ($7.75) •Smoked Salmon Poppers—Scottish cured salmon<br />
wrapped around dill-spiked crème fraîche and topped with tobiko caviar ($15.75) •Buffalo Chicken Lollipops—crisp fried wings<br />
glazed with spicy Buffalo sauce and served with bleu cheese dressing and celery ($10.75) •Crab Cake Corn Dog—with blue<br />
lump crab and Creole remoulade ($8.75) •Surf or Turf Nachos—individual hand-cut tortilla chips topped with melted pepper<br />
Jack cheese, pico de gallo and house-made guacamole topped with a choice of char-grilled filet mignon or grilled Maine<br />
lobster tail ($12.95) •Mac & Cheese “Sticks”—made with aged white Cheddar, smoked Gouda, mozzarella, smoked ham and<br />
chives, lightly breaded, flash fried and served with a white truffle sauce ($6.95) •Summer Shack Lobster Roll—a generous<br />
portion fresh lobster salad served in a classic hot dog bun ($14.75) Char-Grilled Satays •Filet Mignon Satay—grilled USDA<br />
Choice filet mignon glazed with a chimichurri sauce ($10.75) •Thai-style Chicken Satay—grilled chicken breast served with a<br />
spicy peanut sauce ($8.75) •Spicy Jumbo Shrimp Satay—grilled with a red chili rub, basted with a BBQ glaze and served with<br />
chipotle sour cream ($10.75) “The Park” Sliders •Chicken Slider—grilled chicken breast topped with crisp bacon, Jack cheese,<br />
lettuce and tomato, served with honey mustard on a toasted brioche bun($8.75) •Pulled Barbeque Pork Slider—slow-cooked<br />
pork basted with a Southwestern-style chipotle-spiked BBQ sauce, served with a bread & butter pickle on a toasted brioche<br />
bun ($8.75) •Filet Mignon Slider—grilled to your specifications, served with caramelized onions and horseradish cream sauce<br />
on a toasted brioche bun ($13.75) •Kobe Beef Slider—Kobe beef char-grilled and topped with a slice of Roma tomato, crisp<br />
bread & butter pickle and served with secret sauce on a toasted brioche bun ($12.75) Large Plates •Sandwich—USDA Choice<br />
New York strip steak grilled and sliced, served with horseradish cream sauce and a side of cottage fries ($15.75) •Australian<br />
Lamb Chops—grilled three to an order, basted with a mint pesto glaze and served with spicy red pepper coulis ($16.75)<br />
Desserts •Homemade Donuts—fresh from the oven, kissed with confectioner’s sugar and served with hot chocolate fudge and<br />
raspberry dipping sauce ($5) •Homemade Cotton Candy ($5) To accompany these small plates, satays and sliders, Martini<br />
Park offers, of course, martinis—including pomegranate, chocolate, espresso, apple, cucumber, berry, mango and strawberry<br />
basil flavors. Mojitos include raspberry and coconut-lime versions; the caipirinha is grapefruit-flavored. Cocktails are $10,<br />
except for a couple of premium drinks offered at $12. Also menued are 23 wines by the glass at prices ranging from $6.50 to<br />
$15. Martini Park is expected to be the prototype of a chain; the second unit is scheduled to open this spring in Chicago. The<br />
parent company’s chairman is Christopher Barish, impresario of successful high-end nightclubs in New York and Las Vegas.<br />
The president is Alfred Thimm Jr., who left the presidency of The Palm Restaurants to accept his new position.<br />
Palm Restaurant parent Palm Management Group plans to debut a casual-dining concept by the middle of 2008. The new<br />
concept will feature lighter fare, quicker service and lower price points than at the flagship Palm chain. The first unit is slated<br />
for an undisclosed airport location. (Nation’s Restaurant News 11/05/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
473
Pancho's Mexican Buffet<br />
Headquarters<br />
3500 Noble Ave., Fort Worth, Texas 76111 USA<br />
Tel: (817)838-1424 Fax: (817)838-1481<br />
www.panchosmexicanbuffet.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 42,800 41,500 43,000<br />
Company-owned ($000) 39,500 38,500 40,000<br />
Franchised ($000) 3,300 3,000 3,000<br />
U.S. Number of Units 38 38 38<br />
Company-owned 35 35 35<br />
Franchised 3 3 3<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,135 1,100 1,075<br />
Concept Positioning |<br />
Pancho’s Mexican Buffet is a limited-service buffet concept serving Mexican food at family-friendly prices. The chain is<br />
privately held by Pancho's Foods Inc. and operates 38 units in the South, three of which are franchised.<br />
Units are generally freestanding and average 7,300–9,000 sq. ft. Units are decorated to resemble a Mexican villa, with piñatas<br />
hanging from the ceiling (and available for purchase), velvet paintings adorning the walls, and servers wearing authentic<br />
Mexican vests. In addition, the chain features bright color schemes, contemporary furniture and fixtures, Fiesta-style<br />
dinnerware and bright tablecloths.<br />
Pancho’s Mexican Buffet first opened in 1966 in Fort Worth, TX. By 1969, the chain grew to nine locations in Texas, Louisiana<br />
and Oklahoma. In 2001, the chain was purchased by restaurant investor Stephen Oyster, who took it private. There are no<br />
major expansion plans for the chain.<br />
<strong>Menu</strong> Positioning |<br />
Pancho’s is open for lunch and dinner. Its signature offering is its buffet line, which includes 30 freshly prepared items<br />
including tamales, five varieties of enchiladas, flautas, red chili stew, green chili stew, beans and Mexican rice. Complimentary<br />
sopaipillas are also served to customers. Combo meals are available, as is a kids’ menu. Many restaurants also feature<br />
takeout service. <strong>Menu</strong> prices range from $5.29–$16.99. Checks average $6.<br />
Personnel |<br />
Marty Adler, CEO<br />
Robert Cohen, V.P. of Operations<br />
Kristi Wallace, Marketing Manager<br />
Robert Lopez, Director of Purchasing & <strong>Menu</strong> Development<br />
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published.<br />
474
Panda Express<br />
Headquarters<br />
1683 Walnut Grove Ave., Rosemead, California 91770 USA<br />
Tel: (626)799-9898 Fax: (626)403-8688<br />
www.pandaexpress.com<br />
Ownership: Private<br />
Segment: Limited Service Asian/Noodle<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 894,573 735,067 586,564<br />
Company-owned ($000) 884,140 724,767 576,709<br />
Franchised ($000) 10,433 10,300 9,855<br />
U.S. Number of Units 889 787 677<br />
Company-owned 872 774 661<br />
Franchised 17 13 16<br />
International Sales ($000) 637 575 575<br />
International Units 2 2 2<br />
Average Sales/Unit ($000) 1,105 1,059 969<br />
Concept Positioning |<br />
Panda Express is a chain of limited-service Chinese restaurants open for lunch and dinner. It is the largest Chinese restaurant<br />
chain in the U.S. The Panda Restaurant Group, the parent company of Panda Express, operates and franchises 989<br />
restaurants in 36 states and Puerto Rico, as well as two locations in Japan.<br />
Five different unit prototypes are available and range from 800–2,600 sq. ft. The bulk of current units are located in malls. A<br />
steam table and cafeteria line, divided into stations, is the typical service format.<br />
Panda Management (now operating as Panda Restaurant Group) was founded in 1973 by Andrew and Peggy Cherng with the<br />
opening of a Panda Inn dinner house. In 2001, Panda Restaurant Group bought a 40% ownership stake in FoodBrand, LLC, a<br />
wholly owned subsidiary of the Mills Corporation, a shopping-center developer. Panda Restaurant Group also owns and<br />
operates several Panda Inn units in California as well as Hibachi San, a 25-unit quick-service Japanese grill chain. With an<br />
aggressive expansion program, Panda Restaurant Group is seeking locations in high-traffic areas in nontraditional sites such<br />
as supermarkets, casinos, sports arenas, universities and airports to fuel much of its growth. The company's plan is to double<br />
its size over the next several years.<br />
<strong>Menu</strong> Positioning |<br />
Panda Express features Mandarin and Szechwan wok-cooked entrées, sides and beverages. Entrées include Orange<br />
Chicken, Chicken with Mushrooms, Kung Pao Chicken, Mixed Veggies, Beef with Broccoli, Sweet and Sour Pork, Barbecue<br />
Pork, Mandarin Chicken and Fried Shrimp. Entrées come with steamed rice and are available in regular or large portions.<br />
Panda Plates are combination platters with entrées accompanied by steamed rice, fried rice or chow mein. Sides include<br />
veggie spring rolls, chicken egg rolls, vegetable chow mein, vegetable fried rice and soup of the day. <strong>Menu</strong> prices range from<br />
$1.19–$10.79 and checks average $6.<br />
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published.<br />
475
Expansion Plans |<br />
Panda Express plans to open more than 160 units nationwide in 2007. The company is targeting 45 locations in the Northwest<br />
U.S., 35 units in the West, 50 stores in the South/Central region, and 75 restaurants in the East. The company has more than<br />
825 locations in 34 states. (Foodservice Equipment Reports 11/06 p13)<br />
Panda Express is planning to expand in New Mexico. The chain plans to add three locations in New Mexico this year in<br />
addition to its 10 existing units there. The three units will be developed in Albuquerque and Las Lunas. The first of these<br />
locations will open in October. (Bizjournals.com 4/30/07)<br />
Panda Express plans to add 175 stores per year. The company has secured 20 sites for new restaurants in the Chicago and<br />
northern Illinois area. The lease and purchase transaction total about $18 million. Restaurants will open in downtown Chicago,<br />
DeKalb, Lake Zurich, South Elgin, Hoffman Estates, Carpentersville, Orland Park, Palatine, Bolingbrook, Homewood, Oak<br />
Lawn, Plainfield, Darien, Country Club Hills, Batavia and Northlake. The company is also working toward having locations in<br />
every state. (Costar.com 7/23/07)<br />
Personnel |<br />
Tom Devin, CEO<br />
John Theuer, CFO<br />
Ris Wiguna, V.P. of Purchasing<br />
Larry Behm, V.P. of Operations<br />
Glen Lunde, V.P. of Marketing<br />
News & Other |<br />
Golden Kist Inc. has been named the key supplier to Panda Express for its Orange Chicken dish. Golden Kist will also provide<br />
the chain with Mandarin Chicken as well as other chicken products throughout 2007. There are 850 Panda Express units in<br />
operation. (Nation’s Restaurant News 12/18/06 p88)<br />
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published.<br />
476
Panera Bread/Saint Louis Bread Co.<br />
Headquarters<br />
6710 Clayton Rd., Richmond Heights, Missouri 63117 USA<br />
Tel: (314)633-7100 Fax: (314)633-7200<br />
www.panerabread.com<br />
Ownership: Public<br />
Segment: Limited Service Bakery/Café<br />
Chain Brands<br />
Paradise Bakery & Café<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,911,600 1,596,600 1,241,191<br />
Company-owned ($000) 666,100 499,400 362,121<br />
Franchised ($000) 1,245,500 1,097,200 879,070<br />
U.S. Number of Units 1,027 877 741<br />
Company-owned 391 311 226<br />
Franchised 636 566 515<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,040 2,015 1,870<br />
Concept Positioning |<br />
The Panera/Saint Louis Bread Co. concept is an upscale quick-casual operation. Its artisan breads, made with all-natural<br />
ingredients, are at the heart of the chain's menu, which includes freshly baked goods, made-to-order sandwiches, thin-crust<br />
pizzas, soups, desserts and café beverages. Panera Bread is headquartered in Richmond Heights, MO, and operates over<br />
1,000 bakery-cafés in 38 states.<br />
Units are located in suburban strip centers, freestanding sites and in major metropolitan markets. Three prototypes are used<br />
and the newest averages 4,000–4,500 sq. ft. and seats 90–100 patrons. Separate counters are provided for retail bakery<br />
sales. Dining areas, partially separated from retail counters, have both booth and table and chair seating. Natural woods, rich<br />
colors and contemporary lighting add to an upscale ambiance. Many also have an outdoor seating area. In addition, Panera<br />
offers a catering program called "Via Panera." In 2006, Panera introduced its first dinner menu at the majority of its units<br />
nationwide.<br />
Most pastry items are prepared in a central production facility, frozen and then baked off in viewing ovens in each unit.<br />
Regional commissaries provide its unbaked sourdough bread and bagel products on a daily basis. Some 40% of sales are<br />
generated by bakery items, including those used on-premise for its food and sandwich preparation.<br />
Panera Bread was established in 1981. Au Bon Pain Co. acquired the Panera concept in late 1994 for $25 million. In 1999,<br />
stockholders of Au Bon Pain Co. approved the sale of its flagship Au Bon Pain brand. Upon completion of the deal, the new<br />
parent of Panera/Saint Louis Bread became Panera Bread Co. Units are both company-owned and franchised. Currently, the<br />
company is moving beyond its Midwest base and is in operation in 35 states. To facilitate this move, it is using the name<br />
Panera Bread outside of the St. Louis area. Growth is primarily occurring through franchising. In 2006, Panera announced its<br />
intent to begin operations in Canada, with the first new unit launching in 2007. The opening will mark Panera's first move into<br />
international markets. In 2006, Panera agreed to purchase a 51% stake in the 44-unit Paradise Bakery & Cafe chain for $21<br />
million, completing the deal in early 2007. Panera will continue to expand Paradise under its present brand name.<br />
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published.<br />
477
<strong>Menu</strong> Positioning |<br />
Panera's menu establishes the chain as a leading upscale quick-casual eatery with a gourmet positioning. The menu features<br />
café and signature sandwiches, thin-crust pizzas, hot paninis, soups, salads and specialty beverages. Some 50 varieties of<br />
artisan and sourdough breads are listed, such as Nine-Grain, Asiago Cheese and Sun-Dried Tomato. Other baked goods,<br />
including bagels and muffins, are also menued. Sandwich selection includes Chicken Salad on Croissant, Veggie on Nine-<br />
Grain, Smoked Turkey on Sourdough, Asiago Roast Beef on Asiago Cheese Baguette, Tuscan Chicken on Rosemary & Onion<br />
Focaccia and Bacon Turkey Bravo on Tomato Basil Bread. Salads include Fandago, Chicken Oriental, Greek and Caesar with<br />
or without chicken. In 2006, Panera introduced Crispani, a new line of flatbread pizzas available for dinner. Specialty<br />
beverages include I.C. Beverages, Jones Sodas, Chai Tea Lattes and freshly brewed coffees. No alcohol is served. A kids'<br />
menu is available, and offers whole-grain bread for all sandwiches, a choice of organic cheese, yogurt options and beverages<br />
such as milk or apple juice. Checks average $10.<br />
Expansion Plans |<br />
Panera Bread will open its 10th restaurant in the Dayton area on March 2. The unit will be the first free-standing Panera in<br />
southwestern Ohio. (Company Release 2/19/07)<br />
Panera Bread, the 1,101-unit bakery-café chain, entered into an agreement with Breadwinners of the Triangle LLC calling for<br />
Panera Bread units in Fayetteville, Morehead City, Raleigh-Durham and Wilmington, NC. Breadwinners of the Triangle LLC<br />
currently operates 13 Panera Bread locations in the area. (Company Release 8/13/07)<br />
Promotion Plans |<br />
Panera Bread hired Looney Advertising to handle all corporate communications. The agency is developing an integrated<br />
campaign to launch this fall, including print, television, radio, online, and in-store branding, advertising and promotions.<br />
(MediaPost 9/11/07)<br />
<strong>Menu</strong> Development |<br />
Panera Bread has added BBQ Chicken Crispani to its Crispani line. The item features chicken, tangy BBQ sauce, caramelized<br />
onions, fresh cilantro and a mixture of fontina and mozzarella cheese over a crispy, chewy crust. (Company Website)<br />
Panera Bread rolled out a Turkey Caprese sandwich, featuring fresh mozzarella, roasted tomatoes, basil pesto and smoked<br />
turkey breast, served between slices of Sesame Semolina bread. (Company Website)<br />
Panera Bread debuted the Wild Blueberry Scone, prepared with wild blueberries and a traditional creamy batter. (Company<br />
Website)<br />
Panera Bread added Sweet Sausage & Roasted Peppers Crispani to its Crispani line. The item features Niman Ranch<br />
sausage, roasted red and yellow bell peppers, caramelized onions, roasted garlic and Parmesan and Romano cheeses.<br />
(Company Website)<br />
Panera Bread brought back the Crispy Bacon Dijon Panini, featuring citrus-herb chicken, smoky bacon, Swiss cheese and<br />
bacon-Dijon mustard spread on artisan country bread. (Company Website)<br />
Panera Bread rolled out two new soups, Turkey Chickpea Chili and Vegetarian Creamy Tomato Soup. The Turkey Chickpea<br />
Chili features a blend of turkey, chickpeas, pasilla chili-cumin scented tomatoes and turkey broth with diced onion, carrot,<br />
garlic and green chilies. The Vegetarian Creamy Tomato Soup is prepared with pear tomatoes puréed with fresh cream and<br />
hints of red peppers and oregano. Company Website)<br />
Panera Bread added Italian Meat Classic Crispani to its Crispani line. The pizza is prepared with Muir Glen tomatoes, smoked<br />
mozzarella, peperoncini, pepperoni, Canadian bacon and salami. (Company Website)<br />
Panera Bread rolled out a Grilled Salmon Salad, consisting of grilled Chilean salmon served chilled over field greens, romaine<br />
lettuce, roasted red peppers, French green beans and wheat berries and mixed with Meyer lemon vinaigrette. (Company<br />
Website)<br />
Panera Bread brought back the Chicken Tomesto Sandwich, featuring black pepper-mustard chicken with tomatoes marinated<br />
in Italian herbs and spices, field greens, red onions and sun-dried tomato pesto served on Three Cheese miche bread.<br />
(Company Website)<br />
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478
Panera Bread added three items to its fall menu. New offerings include the Orchard Harvest Salad, with fresh pears, dried<br />
cherries, toasted pecans and Gorgonzola cheese, tossed with romaine lettuce in a cherry balsamic vinaigrette; Chipotle<br />
Chicken Sandwich, all-natural pepper-mustard chicken, bacon, smoked Cheddar, tomatoes and an ancho-chipotle spread on<br />
toasted French bread; and Pumpkin Spice Latte, made with espresso, steamed milk and pumpkin spice syrup, topped with<br />
whipped cream and caramel syrup. (Company Website)<br />
Franchise Activity |<br />
Panera Bread Co. signed a franchise agreement calling for 12 Panera Bread bakery-cafés in northern Orange County, CA,<br />
with Dennis and Shane Hitzeman, David Babbush and Tom McDonald. In addition, the new franchisees purchased the Panera<br />
Bread outlet in Fullerton, CA. (NRN Daily NewsFax 6/13/07)<br />
Panera Bread has announced an agreement with Delta Dough Inc. calling for 12 new units in the Memphis, TN, and northern<br />
Mississippi area. Delta Dough owners Rick and Rosemary Postle also operate Blue Ridge Bread Inc., the franchisee of eight<br />
Panera Bread stores in Virginia. (Restaurantnewsresource.com 11/01/07)<br />
International Activities |<br />
Panera Bread plans to expand its presence into Canada with a store opening in Toronto by the end of 2007. The chain has<br />
also been looking into several other locations in Ontario. (Canada.com 5/8/07)<br />
Personnel |<br />
Amy Kuzdowicz, Controller<br />
Ron Shaich, CEO<br />
Paul Ray, V.P. of Purchasing<br />
Mary Ann Graziadei, V.P. of Operations<br />
Ed Zalle, V.P. of Marketing<br />
Ken Sisk, V.P. Research & Development<br />
Panera Bread Co. hired Amy Kuzdowicz as vice president and controller, effective April 3. Previously, Kuzdowicz served as<br />
vice president for Reuters America Holdings LLC. (Bizjournals.com 3/26/07)<br />
News & Other |<br />
Panera Bread Co. reported for the third quarter ended September 26 net earnings decreased 6.8% to $10.9 million from $11.7<br />
million for the same period last year. Revenues grew 38.0% to $205.0 million. Same-store sales rose 3.2%. (NRN Daily<br />
NewsFax 10/27/06)<br />
Panera Bread Co. has agreed to acquire 51% of Paradise Bakery & Café Inc. for $21.1 million. Panera will operate Paradise<br />
under that name as a separate brand. The transaction is expected to close by year-end or early next year. (NRN Daily<br />
NewsFax 11/15/06)<br />
Panera Bread Co. is purchasing a majority stake in Paradise Bakery & Café. Panera will pay $21.1 million for 51% of the 44-<br />
unit Scottsdale, AZ-based Paradise. The deal also allows Panera to purchase the remaining 49% of Paradise’s outstanding<br />
stock in 2009. Paradise said that its company stores, menu and corporate structure would remain the same. (AZCentral.com<br />
11/14/06; NRN Daily NewsFax 11/15/06)<br />
A burrito is not considered a sandwich in Massachusetts. A state Superior Court judge has rejected a Panera Bread<br />
franchisee’s attempt to stop a Qdoba Mexican Grill from opening in White City Shopping Center in Shrewsbury, MA. The<br />
franchisee claimed that in its lease at the shopping center did not allow for the tenancy of any bakery or restaurant that<br />
generated 10% of its sales from sandwiches. The judge rejected the claim, saying that the lease did not include an “explicit<br />
and broad definition of sandwiches,” and that burritos, tacos and quesadillas were not understood to be sandwiches. (NRN<br />
Daily NewsFax 11/06/06)<br />
Panera Bread Company reported November same-store sales increased 1.4%. (Company Release 12/6/06)<br />
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479
Panera Bread Company reported for the fourth quarter ended December 26 revenues increased 25% to $233 million from<br />
$186 million for the same period last year. Same-store sales grew 1.5%. (Company Release 1/4/07)<br />
Panera Bread Company reported for January same-store sales increased 0.8%. (Company Release 1/31/07)<br />
Panera Bread Co. reported for the fourth quarter ended December 26 net earnings rose 9.1% to $19 million from $17.4 million<br />
for the same period last year. Revenues increased 25.2% to $233 million from $186.1 million. Same-store sales grew 4.1%.<br />
(Company Release 2/8/07)<br />
Panera Bread Company reported February same-store sales decreased 0.6%. (Company Release 3/7/07)<br />
Panera Bread Company reported for the first quarter ended March 27, revenues increased 24% to $240 million from $194<br />
million for the same period last year. Same-store sales decreased 0.2% for March. (Company Release 4/4/07)<br />
Panera Bread has pulled Jay’s chips from its shelves. Jay’s Foods Inc. has been providing Kettle potato chips, a crunchier and<br />
thicker chip, inside a Panera-branded bag. The potato chips were pulled because chips are not a core line for the restaurant.<br />
(Suntimes.com 4/10/07)<br />
Panera Bread reported its first-quarter per-share profit would be at or below its prior stock projections because of extreme<br />
weather. The company expected to earn 47¢–50¢ per share for the quarter, compared to 47¢ for the same period last year.<br />
(NRN Daily NewFax 4/6/07)<br />
Panera Bread Co. expects its second-quarter profit to increase 7%–16% on improved same-store sales. The company expects<br />
system-wide same-store sales to grow 3.5%–$4.5%. Panera also forecasts earnings of 47¢–51¢ per share. (Associated Press<br />
4/25/07)<br />
Panera Bread Co. reported April same-store sales increased 3.1% system-wide. Year-to-date sales, through April 24, grew<br />
0.7%. The same-store sales report only included locations open for at least 18 months. (Company Release 5/2/07)<br />
Panera Bread Company reported May same-store sales increased 1.2%. Company-owned same-store sales rose 1.1% and<br />
franchised same-store sales grew 1.3%. The company also adjusted its growth target downward to 1.5% –2.5% from the<br />
previous 3.5% –4.5% target. (Company Release 6/6/07)<br />
Panera Bread sponsored two North Carolina events in June: the 2007 Komen NC Triangle Race for the Cure, which took<br />
place on June 9, and the Raleigh Chamber of Commerce’s Executive Women’s Golf Tournament, on June 11. The chain is a<br />
Gold Level sponsor of the Komen NC Triangle Race for the Cure and provided products and financial consideration equaling<br />
$10,000. Panera is a hole sponsor for the Executive Women’s Golf Tournament. (Theopenpress.com 6/8/07)<br />
Panera Bread has purchased 32 franchisee-operated units and the area development rights for a number of markets in Illinois<br />
and Minnesota for $36 million in cash and liability assumptions. $34 million of the acquisition price was paid for in cash at the<br />
time of closing, with the remaining balance to be paid with interest in one year. (QSRMagazine.com 6/24/07)<br />
Panera Bread Co. reported June same-store sales rose 2.3%, including a 2.1% rise in company-owned locations and a 2.4%<br />
increase at franchised units. For the quarter ended June 26, revenues grew 28% to $253 million from $197 million for the<br />
same period last year. (Associated Press 7/5/07)<br />
Panera Bread Co. reported for the second quarter ended June 27 net earnings fell 10% to $12.6 million from $14.1 million for<br />
the same period last year. Revenues rose 28% to $253 million from $197.1 million. Same-store sales increased 2.1%.<br />
(Associated Press 7/24/07)<br />
Panera Bread Co.’s stock has fallen for each of the past eight months. Analysts blamed rising commodity prices, labor costs<br />
and rising fuel costs for the decline. The company may raise prices and change its menu mix. (Seeking Alpha 7/30/07)<br />
Panera Bread Co. reported July same-store sales increased 3.9% over the same time last year. The increase was 4.4% at<br />
company-owned locations and 3.6% at franchised units. (Associated Press 8/1/07)<br />
Panera Bread Co. reported August same-store sales rose 3.1% systemwide compared to year-before figures. Companyowned<br />
location sales grew 4.1% and sales at franchised locations increased 2.5%. (Associated Press 9/5/07)<br />
Panera Bread Co. expects its third-quarter earnings per share to be 35¢–37¢ on a reported 35% rise in revenue. Systemwide<br />
sales increased 0.8% in September at locations open at least 18 months. (Businessweek.com 10/3/07)<br />
Panera Bread Co. reported for the third quarter net earnings rose 9.2% to $11.9 million from $10.9 million for the same period<br />
last year. Revenues increased 33% to $273.2 million from $204.9 million. Same-store sales grew 2.6%. (Associated Press<br />
10/23/07)<br />
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published.<br />
480
Panera Bread Co. celebrated its 20-year anniversary November 15 with a ceremony at the chain’s first restaurant in Kirkwood,<br />
MO. On hand were company executives, community leaders and local representatives from nonprofit organizations.<br />
(QSRmagazine.com 11/15/07)<br />
Panera Bread Co. says it will pay up to $75 million to buy back its common stock during the first quarter of 2008. There were<br />
roughly 32.2 million Panera shares outstanding as of September 25. The company’s stock has recently traded in the mid-$30<br />
range, down from a 52-week high of $62.78 per share. (NRN Daily NewsFax 11/29/07)<br />
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published.<br />
481
Papa Gino's Pizzeria<br />
Headquarters<br />
600 Providence Highway, Dedham, Massachusetts 02026 USA<br />
Tel: (781)461-1200 Fax: (781)329-8796<br />
www.papaginos.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 152,961 145,093 137,137<br />
Company-owned ($000) 149,961 143,841 130,137<br />
Franchised ($000) 3,000 1,252 7,000<br />
U.S. Number of Units 177 174 173<br />
Company-owned 163 160 164<br />
Franchised 14 14 9<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 920 834 805<br />
Concept Positioning |<br />
Papa Gino's Pizzeria owns and operates the limited-service Italian restaurants specializing in pizza. Customers may choose to<br />
dine-in or takeout. Delivery is available at most locations and accounts for some 35% of sales. Approximately 140 units are<br />
served by a central commissary that produces pizza dough as well as shipping products such as cheese. The remaining<br />
stores make their pizza dough on-premise.<br />
Units seat 80–120 diners and have a casual ambiance. Many are freestanding or located in shopping malls and are open for<br />
lunch, dinner and snacks. Papa Gino's is remodeling its restaurants to provide a more bistro look and feel, with warmer colors,<br />
expanded seating in more comfortable booths and updated tables and chairs. The company believes that the improved interior<br />
design puts the chain in a better position to compete with casual Italian chains like Bertucci's and Olive Garden. In addition to<br />
its traditional sites, Papa Gino's has moved into the non-traditional arena through licensing and other arrangements. Specific<br />
sites include Foxboro Stadium, Fenway Park, the University of Connecticut and over 100 other school systems.<br />
Papa Gino’s was founded by Michael Valerio in 1967. In late 1991, a private investor group purchased the chain. In 1997, the<br />
company acquired D’Angelo Sandwich Shops, now called D'Angelo's Grilled Sandwiches, from PepsiCo as part of the spin-off<br />
of its restaurant holdings. Terms were not disclosed. Once owned by BancBoston Capital, Papa Gino’s Holdings Corp. was<br />
bought in 2005 by a team led by company CEO Thomas Galligan and Bunker Hill Capital. In 2006, Papa Gino's became Papa<br />
Gino's Pizzeria.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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482
<strong>Menu</strong> Positioning |<br />
Papa Gino's menu features appetizers, snacks, pizzas, salads, pastas, cold and hot subs, pockets, panini sandwiches and<br />
beverages. Signature items are its thin crust pizzas made with signature tomato sauce and a three-cheese blend atop handstretched<br />
thin crust dough. Some favorite pizzas include Super Veggie—broccoli florets, mushrooms, peppers, onions,<br />
tomatoes and olives; Buffalo Chicken—white breast chicken in a spicy Buffalo marinade with onions and three-cheese blend;<br />
Paparoni—50% more cheese and pepperoni; and Chicken & Roasted Peppers—white breast chicken, roasted peppers and<br />
sweet tomato chunks. Pasta entrées include Cheese Ravioli, Chicken Parmigiana, Penne Alfredo, Chicken & Broccoli Alfredo<br />
and Spaghetti. Fifteen sandwiches are offered, including Basil Chicken Panini, Meatball Parmigiana, Hot Veggie Pocket,<br />
Turkey Club and Tuna. In 2006, the chain rolled out the new Rustic Pizza—larger and thinner than other Papa Gino's pizza<br />
offerings, the Rustic Pizza is sliced into 12 square slices, topped with Asiago and Romano cheeses and is priced at $11.99.<br />
Alcoholic beverages are served at select locations. <strong>Menu</strong> prices range between $1.79 and $13.99. Checks average $8–$10.<br />
Expansion Plans |<br />
Papa Gino’s hopes to more than double the number of its restaurants to 335 over the next five years. Plans call for 135<br />
outlets, including 90 franchised units, in New England as well as in Florida, North Carolina and Virginia. The new stores will<br />
feature the company’s new design, which includes a logo, a larger interior and seating for 76 patrons at upgraded booths,<br />
tables and chairs. There are currently 160 Papa Gino’s nationwide. (Boston.com 3/09/07; The Union Leader 3/10/07)<br />
Personnel |<br />
Thomas Galligan, CEO<br />
Louie Psallidas, CFO<br />
Bruce Archambault, V.P. of Purchasing<br />
Rick Wolf, V.P. of Operations<br />
Michael McManama, V.P. of Marketing<br />
Tino Menmitto, V.P. Research & Development<br />
Michael McManama, S.V.P. of Brand Development<br />
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published.<br />
483
Papa John's<br />
Headquarters<br />
2002 Papa John's Blvd., Louisville, Kentucky 40299 USA<br />
Tel: (502)261-7272 Fax: (502)266-2925<br />
www.papajohns.com<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,958,404 1,817,347 1,714,876<br />
Company-owned ($000) 447,938 434,525 412,676<br />
Franchised ($000) 1,510,466 1,382,822 1,302,200<br />
U.S. Number of Units 2,657 2,599 2,565<br />
Company-owned 577 502 568<br />
Franchised 2,080 2,097 1,997<br />
International Sales ($000) 141,018 104,805 111,309<br />
International Units 358 439 382<br />
Average Sales/Unit ($000) 754 711 669<br />
Concept Positioning |<br />
Papa John's is a national limited-service chain of pizza restaurants that offer high quality, value-priced pizzas and sides for<br />
delivery or carry-out only. Fresh (never frozen) dough, real cheese, pizza sauce made with fresh tomatoes and a proprietary<br />
seasoning/spice mix enables it to concentrate on product consistency and quality. Papa John’s is known for its wide variety of<br />
specialty pizzas at affordable prices.<br />
Units range in size from 900–1,200 sq. ft. and are generally located in strip shopping centers or as freestanding locations.<br />
Each unit has backlit awnings, neon window designs and other visible signage. Interiors are a vibrant red and white with green<br />
striping. <strong>Menu</strong> boards are included for easy customer ordering and counters are designed to allow customers to watch dough<br />
spinning and other parts of the preparation process. Units are open seven days a week from 11:00 a.m. to 12:30 a.m. during<br />
the week and until 1:30 a.m. on Friday and Saturday nights. In addition, customers have the ability to place orders online 24<br />
orders a day, seven days a week. Online orders can be placed up to 21 days in advance. Papa John's is the only nationwide<br />
pizza chain that offers online ordering for all of its locations. The chain also offers catering services in most markets.<br />
A commissary system supplies pizza dough as well as food and paper products to both company and franchised restaurants.<br />
There are currently a dozen commissaries that serve the system.<br />
The company opened its first restaurant in 1985 and commenced with franchising in 1986. It went public in 1993. In 2005,<br />
Papa John's agreed to sell nearly 85 company-owned stores in Colorado and Minnesota to franchise group PJCOMN<br />
Acquisition Corporation for an undisclosed sum. In 2006, Papa John's announced a partnership with Six Flags to sell its pizza<br />
at 60 locations within the company's 29 North American Six Flags' theme parks. Terms were not disclosed.<br />
Papa John's current expansion strategy is to cluster units in targeted markets as well as move out in concentric rings from its<br />
commissary system. Co-development with franchisees also helps to achieve a more rapid penetration. In late 1999, the<br />
company announced it had acquired 205-unit Perfect Pizza Holdings Ltd., the largest independent delivery and carry-out pizza<br />
chain in the United Kingdom, for some $32.5 million. Papa John’s began to convert its Perfect Pizza system in the U.K. to the<br />
Papa John’s brand. Papa John's later sold the 112-unit Perfect Pizza chain to London-based investment group Smartfirst<br />
LTD., for $13 million. In more international activity, the company launched its first unit in the Southern region of China in 2005.<br />
This unit was the first of several new units planned for this region in China. International markets are hotspots for the chain’s<br />
growth. India has also been identified as a major growth market for Papa John's, as the company projects that it will open 500<br />
new locations in India by 2016. Two units are currently operating in New Delhi and Noida, India. Other international markets<br />
include the U.K., China, Mexico, Russia and South Korea—where nearly 100 units are in operation or under construction.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
484
<strong>Menu</strong> Positioning |<br />
Papa John's menu features pizzas, sides and beverages during lunch and dinner hours. Pizzas are available in small,<br />
medium, large and x-large sizes. Nearly 20 toppings are available and include onions, green peppers, ground beef, pepperoni,<br />
chicken, ham, corned beef, bacon, hot peppers, olives, anchovies and chunky Italian sausage. Signature pizzas include the<br />
Roma Meats, Six Cheese, Hawaiian Special, Grilled Chicken Alfredo, Garden Fresh, Spinach Alfredo, The Works; and the<br />
Spicy Meatball pizza— meatballs, sliced onions, green peppers, spicy tomato sauce, mozzarella cheese and Parmesan-garlic<br />
seasoning. Other pizza favorites include Smokehouse Bacon & Ham, Double Pepperoni & Robusto Sauce, Hawaiian<br />
Barbecue Chicken, Italian Trio, Sizzlin' Steak and Sizzlin' Chicken Fajita. Sides include Papa’s Wings, Papa’s Chicken Strips, ,<br />
Cheesesticks, breadsticks, Parmesan breadsticks and Bacon Cheesesticks. Sweet options include Papa’s Sweetreats—<br />
desserts pizza pies. Other add-ons and extras include jalapeño peppers, anchovies and pepperoncinis, as well as a line of<br />
dipping sauces, including barbecue, bleu cheese, honey mustard and its popular garlic sauce. Beverages include bottled<br />
Coca-Cola® products. <strong>Menu</strong> prices range from $3.99–$17.99. Checks average $12.50.<br />
Expansion Plans |<br />
Papa John’s International inked a deal with Alpha Restaurant Group LLC to open 30 outlets in Detroit over the next six years.<br />
The first four are slated to open by year’s end. (Company Release 4/05/07)<br />
Promotion Plans |<br />
Papa John’s is taking the stress out of holiday shopping by offering “Papa Cards,” available in $5 increments from $10–$100.<br />
The cards can be purchased at any Papa John’s restaurant and at more than 18,000 retailers nationwide. (Company Release<br />
11/14/06)<br />
Papa John’s is offering its new Superman Pan Pizza for $12.99 beginning November 28. Orders of the new pizza be<br />
accompanied by a $3 off, instantly redeemable coupon for the “Superman Returns” DVD, while supplies last. In addition,<br />
consumers residing on Lois Lanes nationwide within the company’s delivery area will receive a free Superman Pan Pizza<br />
when they order online. This promotion will last until December 12. (Company Release 11/27/06)<br />
Papa John’s teamed with Blockbuster to have the restaurant offer a free trial of Blockbuster’s online DVD rental service. When<br />
customers sign up, Papa John’s is offering a $10 gift card. (Company Release 11/22/06)<br />
Papa John’s and Blockbuster are partnering to sponsor a new college football game, the Papajohns.com Bowl. The joint<br />
venture allows for visitors to the Papa John’s website to sign up for a 14-day trial period to get free access to movies from<br />
Blockbuster Total Access. Participants also receive a $10 Papa Card to use toward the purchase of pizzas, side items or<br />
beverages. (Nation’s Restaurant News 12/11/06 p14)<br />
Papa John’s International Inc. is launching a promotion for its new hot wings called “Fling It & Wing It” that challenges football<br />
fans to see how far they can throw a football, sitting in a recliner and holding an order of hot wings. Whoever can throw the<br />
football the farthest wins free Papa John’s pizza and wings for a year and a trip to the Super Bowl on February 4. (Company<br />
Release 1/8/07)<br />
Papa John’s teamed with H&R Block TaxCut Online to offer customers a gift card to Papa John’s for $10.40. Participating<br />
customers must complete their taxes online with H&R Block by April 16 to receive the gift card. (Company Release 2/21/07)<br />
Papa John’s offered a large original crust cheese pizza for $10.40 from April 9 to April 17 to customers who ordered online at<br />
the restaurant’s website and entered the “1040” promotional code. Included with the discounted pizza was an “add up to five<br />
toppings for free” offer. In addition, customers who used H&R Block’s TaxCut online program received a free Papa John’s gift<br />
card for $10.40 and the restaurant brought pizza to select H&R Block locations for employees on April 14. (Papajohns.com<br />
4/9/2007)<br />
Papa John’s will offer the Queen of England and other members of the British royal family free pizza for life when they visit<br />
Kentucky for the Kentucky Derby on May 5. In addition to the derby, the queen will be escorted around Louisville by Papa<br />
John’s British-born Chief Executive Officer Nigel Travis. Travis will also provide the queen with a lesson in Western Kentucky<br />
dialect. (Company Release 4/30/07)<br />
Papa John’s will give away 777 pizzas to honor “The luckiest day on Earth”, July 7, 2007. The chain will offer 777 free large,<br />
one-topping pizzas to randomly selected online customers. Customers can register for a chance to win one of the free pizzas<br />
in addition to a chance for a $777 Papa Card. Also, Papa John’s is offering large, one-topping pizzas for $7.77 when ordered<br />
on the chain’s website on July 7. (Company Release 7/2/07)<br />
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published.<br />
485
Papa John’s International Inc. teamed with Coca-Cola to offer customers instant prizes through its summer promotion called<br />
SUMMER07. Customers who text either “SUMMER07” to “4PAPA” or go online to the chain’s website to register for the<br />
promotion will instantly receive an exclusive offer and discount from Papa John’s, to be used when ordering from the<br />
restaurant online. Once registered, participants will also be eligible to win My Coke Rewards points for prizes such as music<br />
downloads and movie discounts. The grand prizes include two four day/three night Universal Resorts trips and a year of both<br />
Blockbuster movie rentals and Papa John’s pizza. (Company Release 7/9/07)<br />
Papa John’s is offering on its website a free large one-topping pizza with the purchase of any extra-large specialty pizza at<br />
regular price. Customers can use the promotion code given. The offer ends August 31. (Company Website 8/17/07)<br />
Papa John’s is offering a large one-topping pizza for 99¢ when customers buy a large specialty pizza at regular price through<br />
the chain’s website. The offer began on September 6 and will be available throughout the 2007–2008 football season. Papa<br />
John’s expects to sell more than 10 million pizzas on Sundays during football season. (Pizzamarketplace.com 9/10/07)<br />
Papa John’s is offering through its website free chicken strips with the purchase of a large specialty pizza at regular price. The<br />
promotion celebrates Grandparents’ Day. Customers must use a special promotional code to redeem the offer. The code<br />
expires on September 21. (Company Website 9/7/07)<br />
Papa John’s is offering a free Papa’s Sweetreat with the purchase of a large, two-topping pizza at regular price. Customers<br />
must redeem the special promotional code to receive the offer. The code expires October 2. (Company Website 9/21/07)<br />
Papa John’s is promoting “Spider-Man 3” with the movie’s images on its pizza boxes. The chain teamed with Sony Pictures<br />
Home Entertainment to offer a coupon for $3 off the “Spider-Man 3” DVD when customers purchase a Super-Hero XL3 Pizza<br />
for $12.99. The pizza is 30% bigger than its other pizzas and comes with three toppings. Papa John’s is also introducing<br />
“Spider-Man”-themed Papa cards. The gift cards are available in $5 increments. (Promomagazine.com 10/25/07)<br />
Papa John’s is offering to its online customers a free large specialty pizza with the purchase of two pizzas as part of its “Bootiful<br />
Halloween” promotion through November 3. (papajohns-specials.com 10/29/07)<br />
Papa John’s offered a text-order special through an online promotion as part of the company’s text-ordering launch. The offer<br />
included a 99-cent large one-topping pizza with the purchase of any large specialty pizza at regular menu price. (Company<br />
Website 11/16/07)<br />
<strong>Menu</strong> Development |<br />
Papa John’s launched a Sausage Sensation Pizza for a limited time. The pizza comes with six toppings, including spicy Italian,<br />
smoked and sweet sausages, sliced onions and green and red peppers. A large size is priced at $11.99. (Company Website)<br />
Papa John’s gave customers a sample of Cholula Hot Sauce’s “Flavorful Fire” with each order for a limited time. The hot<br />
sauce blends pequín peppers, red peppers and spices. (Company Release 3/06/07)<br />
Papa John’s rolled out Sausage Sensation Pizza for a limited time. The item comes with six toppings, including spicy Italian,<br />
smoked and sweet sausages, sliced onions and green and red peppers. It is priced at $11.99 for a large. (Company Release<br />
2/27/07)<br />
Papa John’s introduced Italian Meats Trio pizza, featuring Italian salami, Italian ham and spicy Italian sausage with a robusto<br />
sauce and a mix of Parmesan and Romano cheeses, all topped with Italian herbs. The limited-time pizza is $11.99 for a large.<br />
(Company Release 3/27/07)<br />
Papa John’s reintroduced its Italian Meats Trio specialty pizza. The pizza features Italian salami, Italian sausage and Italian<br />
ham with Robusto sauce, Parmesan and Romano cheeses and Italian herbs. The item is available through the end of<br />
September and is priced at $11.99. (Company Release 8/31/07)<br />
Papa John’s introduced its Six Cheese Tuscan and Roma Meats pizzas for $11.99, available until October 22. The Six Cheese<br />
Tuscan Pizza features a blend of six cheeses and Italian herb seasoning, and the Roma Meats Pizza is topped with Italian<br />
sausage, Italian salami, Roma tomatoes, three cheeses and Italian herb seasoning. (Company Release 9/24/07)<br />
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486
Franchise Activity |<br />
Papa John’s franchise group Central Ohio Restaurants Inc. sold its 28 Dayton, OH-area units to Frandeli Franchise<br />
International. Terms of the deal were not disclosed. Central Ohio Restaurants’ owner Mike Burke and staff have been retained<br />
to oversee operations of the restaurants under the PJ Ohio LLC banner. Frandeli is looking for PJ Ohio to grow to about 75–<br />
100 Papa John’s franchises in the Midwest in 2007. Under a separate contract, Burke will jointly own up to 12 Papa John’s<br />
restaurants with Frandeli. (Dayton Business Journal 1/01/07)<br />
Papa John’s International is waiving its $25,000-per-outlet franchise fee for a limited time. The waiver applies to California,<br />
Connecticut and New Jersey and the Boston, Chicago, Detroit, and Albany and Buffalo, NY, markets. The company has not<br />
stated when its fee waiver offer will end. Louisville, KY-based Papa John’s operates nearly 3,000 stores in 49 states and 22<br />
countries. (NRN Daily NewsFax 10/4/07)<br />
Papa John’s largest franchisee P.J. United, operator of 116 units in six states, was bought out by The Halifax Group, along<br />
with P.J. United founder Douglas S. Stephens and other top managers. Terms of the shareholder buyout were not disclosed.<br />
(Washingtonpost.com 11/14/07, Yahoo! Finance 11/13/07)<br />
International Activities |<br />
Papa John’s International opened its 50th restaurant in China. The company plans to open 250 restaurants in China over the<br />
next four years. (Company Release 2/16/07)<br />
Papa John’s International plans to open its first unit in Egypt. In related news, Papa John’s has opened its 50th restaurant in<br />
Shanghai with franchisee Eternal Rose. The chain expects to add at least 250 restaurants in China over the next four years.<br />
(Foodservice Equipment & Supplies 3/07/07; Company Release 3/01/07; NRN Daily NewsFax 2/20/07)<br />
Papa John’s International Inc. plans to open 120 units in China over the next few years. It currently has about 50 outlets in the<br />
country. In related news, Papa John’s also plans to double its unit count in Britain by 2010. The pizza chain wants to open 170<br />
restaurants in Britain in the next three years. (Bizjournals.com 3/27/07; Globeandmail.com 3/28/07)<br />
Papa John’s expects to develop 900 international locations by 2016. The pizza chain plans to open 120 international units this<br />
year alone. Robb Chase, Papa John’s new president of international operations, said that the chain’s international operations<br />
are budgeted to lose $9 million this fiscal year and that the division won’t turn a profit until 2010. (Courier-Journal.com 5/13/07)<br />
Papa John’s is planning to enter the Polish market, with its first restaurant in Poland opening by the fourth quarter of 2008.<br />
(Pizzamarketplace.com 9/27/07)<br />
Technology |<br />
Papa John’s is promoting new gift cards for students to use when ordering pizza in their dorm rooms. Reloadable Papa Cards<br />
allow parents to add up to $200 online. Card balances can also be checked using the company’s website. (QSR Magazine<br />
Online 8/27/07)<br />
Papa John’s new text-ordering service will allow customers to set up an online favorites account. The account can save up to<br />
four preset orders which include food and drink combinations, delivery addresses or carry-out information and payment type.<br />
The favorites order can then be texted as “FAV1,” “FAV2,” “FAV3” or “FAV4.” The service will also function as a new marketing<br />
medium for Papa John’s to send out coupons, updates and special offers to its customers. The company plans to promote the<br />
new service heavily. (WSJ.com 11/13/07)<br />
Personnel |<br />
Donna Alcorn, S.V.P. of Operations<br />
Nigel Travis, CEO<br />
J. David Flanery, CFO<br />
Alice LaBlanc, V.P. of Purchasing<br />
Tim Scott, V.P. of Marketing<br />
Derek Walker, V.P. of R&D/Quality Management<br />
Papa John’s International Inc. announced its senior vice president of domestic operations, Mike Cortino, has resigned.<br />
(Company Release 1/29/07)<br />
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487
Papa John’s International Inc. promoted Bill Mitchell to senior vice president of domestic operations. Previously, Mitchell<br />
served as division vice president for the Midwest for the company. (Company Release 2/15/07)<br />
Papa John’s International Inc. hired Tim Scott as vice president of marketing for the company’s international division.<br />
Previously, Scott served as senior vice president of sales and marketing for Churchill Downs Inc. (NRN Daily NewsFax<br />
3/29/07)<br />
Papa John’s International Inc. hired Derek Walker as vice president, R&D/Quality Management. Previously, Walker served as<br />
an executive with the Sara Lee Corporation. (Company Release 4/6/07)<br />
Papa John’s International Founder and Chairman John H. Schnatter will change his status to “non-employee.” Schnatter’s<br />
duties as chairman might not change, and he will continue as the company’s advertising spokesman. Schnatter offered to be<br />
compensated through stock option grants instead of cash. (NRN Daily NewsFax 5/15/07)<br />
Papa John’s top executive in charge of international growth, Robb Chase, has resigned after being with the company for only<br />
nine months. Chase has been offered an opportunity with a private equity firm in Toronto. David Flanery, Chief Financial<br />
Officer for the company, will oversee the international division until a permanent replacement can be found. In addition, Lou<br />
Jones has been hired as Senior Vice President and General Counsel. Previously, Jones served as Senior Vice President for<br />
Blockbuster Inc. (Courier-journal.com 6/1/07)<br />
News & Other |<br />
Papa John’s reported for the third quarter net earnings increased 21.2% to $13.1 million from $10.8 for the same period last<br />
year. Revenues grew 2.8% to $239.7 million from $233.1 million. Same-store sales rose 4.5%. (Company Release 10/31/06)<br />
Papa John’s International Inc. reported for November same-store sales decreased 0.3%. (NRN Daily NewsFax 11/29/06)<br />
Papa John’s teamed with Hoops for a multi-year sponsorship and concession agreement. The deal begins with Hoops’<br />
Louisville, KY, location. (Company Release 12/4/06)<br />
Papa John’s International Inc. will provide the foodservice operations for Hoops, a new basketball-themed recreation center.<br />
The first Hoops location is set to open in Louisville, KY, in early 2007. The Papa John’s unit will be 3,500-sq.ft. and serve<br />
breakfast items, salads and sandwiches as well as pizzas. (Nation’s Restaurant News Online 12/05/06)<br />
Papa John’s International Inc. reported for the year ended December 31 same-store sales increased 30.4%. (Company<br />
Release 1/9/07)<br />
Papa John’s reported for the fourth quarter, net earnings increased 32% to $19 million from $14.4 million for the same period<br />
last year. Revenues grew 11.9% to $277.9 million from $248.4 million. Same-store sales fell 0.5%. For the year, net earnings<br />
grew 37.5% to $63.4 million from $46.1 million. Revenues increased to $10 million from $968.8 million. Same-store sales rose<br />
3.1%. (Company Release 2/27/07)<br />
Papa John’s International reported for the first quarter net earnings decreased 17.5% to $13.2 million from $16 million for the<br />
same period last year. Revenues increased 7.5% to $260.6 million from $242.3 million. Domestic systemwide same-store<br />
sales rose 0.2%. (Company Release 5/8/07)<br />
Papa John’s International Inc. Chairman and Founder, John H. Schnatter, sold 263,944 of the company’s shares for $33.42<br />
apiece. The sale took place on May 11. (Associated Press 5/15/07)<br />
Papa John’s International Inc. has been recognized as the “2007 Pizza Chain of the Year” by industry magazine Pizza Today.<br />
According to a news release from the publication, the chain was selected for its leadership and financial performance.<br />
(Bizjournals.com 7/6/07)<br />
Pizza Hut, Papa John’s and other large pizza chains had to raise the prices of their pizzas because of rising cheese costs.<br />
Both Pizza Hut and Papa John’s raised the prices of cheese pizzas to equal the price of a one-topping pizza. The cheese<br />
pizzas cost the chains more because they require an extra cup of cheese. (Dailyherald.com 7/11/07)<br />
Papa John’s International Inc. reported for the second quarter ended July 1 net earnings were $7.0 million, compared to $15.3<br />
million for the same period last year. Revenues increased 6.1% to $256.3 million from $241.6 million. Same-store sales<br />
decreased 1.1% domestically, but grew 2.1% worldwide. (Company Release 8/7/07)<br />
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488
Papa John’s International is introducing a scaled-back version of a new pizzeria for rural communities and developing markets<br />
that will shave off approximately $30,000 of the typical $230,000 cost to open a new store. Units have a smaller overall<br />
building size and fewer interior walls, smaller ovens and less expensive kitchen equipment. The concept was developed after<br />
corporate headquarters executives met with franchisees in areas along the Gulf Coast that are still recovering from Hurricane<br />
Katrina. The first store to use the model premiered in late June in Washington, IN. (The Courier-Journal Online 8/9/07)<br />
Papa John’s International Inc. has signed on as the title sponsor of the U.S. Gran Prix of Cyclocross Derby City Cup to be held<br />
in late October in Louisville, where the pizza chain is headquartered. (Business First of Louisville 9/11/07; Yahoo! Finance<br />
9/11/07)<br />
Papa John’s International is waiving its franchise fee for a limited time in major markets, including Boston, Chicago, Detroit<br />
and Albany and Buffalo, NY, as well as in California, Connecticut and New Jersey. The standard franchise fee is $25,000 per<br />
outlet. In addition, Papa John’s is waiving the 5%-of-sales royalty for a limited time in California. No time frame for the offer<br />
has been announced. (NRN Daily NewsFax 10/4/07)<br />
Papa John’s is rolling out text-message ordering for its U.S. stores. The orders, which can be placed in a few clicks on any<br />
phone, PDA or similar device, are processed in the same way as orders placed on the company’s website. (Courierjournal.com<br />
11/07/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
489
Papa Murphy's Take 'N' Bake Pizza<br />
Headquarters<br />
8000 NE Parkway Dr. Suite 350, Vancouver, Washington 98662 USA<br />
Tel: (360)260-7272 Fax: (360)260-0500<br />
www.papamurphys.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 444,227 411,448 385,855<br />
Company-owned ($000) 13,535 7,564 4,400<br />
Franchised ($000) 430,692 403,884 381,455<br />
U.S. Number of Units 963 924 841<br />
Company-owned 50 49 11<br />
Franchised 913 875 830<br />
International Sales ($000) - - -<br />
International Units 5 - -<br />
Average Sales/Unit ($000) 485 470 485<br />
Concept Positioning |<br />
Papa Murphy’s is a limited-service take-and-bake pizza concept targeting time-pressed middle-class families. Customers can<br />
choose from among 18 gourmet toppings to personalize their pies, pick them up and bake them at home on oven-ready paper<br />
trays with step-by-step cooking instructions attached to a transparent lid. Charlesbank Capital Partners operates nearly 1,000<br />
Papa Murphy’s units in 30 states and Canada. About 98% of Papa Murphy’s units are franchised.<br />
Units average approximately 1,200 sq. ft. and are located in malls near suburban neighborhoods. Most restaurants are<br />
freestanding with warm-colored interiors and a prep area that allows customers to see the pizzas being assembled.<br />
Papa Murphy’s originated with two take-and-bake pizza operators, Murphy’s Pizza of Petaluma, CA, and Papa Aldo’s of<br />
Portland, OR. Terry Collins, the current CEO, bought the controlling interest in Murphy’s Pizza in 1988 and two years later<br />
expanded his holdings with the Papa Aldo’s pizza chain. In 1995, the entire system was converted to the Papa Murphy’s<br />
name. Charlesbank Capital Partners became the owner of Papa Murphy's in 2004. The company has not disclosed future<br />
expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Papa Murphy's menu offers a variety of take-and-bake pizzas available in a variety of styles, including the Papa's pizza,<br />
gourmet pizza and stuffed pizza specialties. Signature pizzas include the Hawaiian pizza, Rancher pizza, Gourmet Chicken<br />
Garlic pizza, Gourmet Vegetarian pizza, Grilled Chicken & Bacon Stuffed pizza, Chicago-Style Stuffed pizza, the Sicilian Pan<br />
Pizza—an olive oil-brushed crust pizza with Sicilian sauce, fire-roasted onions, pepperoni and Italian sausage with grated<br />
mozzarella and Parmesan. The menu also features salads, calzones and family-sized lasagna. Chocolate Chip Cookie Dough<br />
to bake at home is offered as a dessert option. <strong>Menu</strong> prices range from $3.99-$13.99 and checks average $11.<br />
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published.<br />
490
Expansion Plans |<br />
Papa Murphy’s is planning to add 65 units in Arizona by 2013. The take-and-bake pizza chain currently operates 15 stores in<br />
Arizona. Papa Murphy’s has a total of 1,000 units in 30 states and Canada. (Pizza Marketplace Online 10/25/07)<br />
<strong>Menu</strong> Development |<br />
Papa Murphy’s Take ’N’ Bake added a heart-shaped pizza to its menu for Valentine’s Day. The pizzas were topped with<br />
freshly grated cheese and pepperoni and priced at $5.99 for a large size. (Company Release 2/6/07)<br />
Papa Murphy’s has eliminated trans fats from its menu items at all 1,000-plus U.S. locations. The Washington-based take-andbake<br />
pizza chain reformulated more than 20 pizzas to meet trans fat-free qualifications. (Pizza Marketplace Online 9/18/07)<br />
Franchise Activity |<br />
Papa Murphy’s is planning to add 47 franchised locations in the St. Louis region by 2011. It currently has five locations there.<br />
The Vancouver, WA-based pizza chain currently has more than 1,000 locations in 30 states and Canada. (STLToday.com<br />
10/8/07)<br />
Technology |<br />
Papa Murphy’s International and Rita’s Water Ice Franchise Co. are both using geoVue software for development activities.<br />
The software enables the chains to generate different build-out scenarios to determine the best strategy to drive maximum<br />
store revenues. (Nrn.com 7/18/07)<br />
Personnel |<br />
Jerry Kenney, S.V.P. of Operations<br />
John Barr, CEO<br />
Janet Pirus, CFO<br />
Peter Fowler, V.P. of Purchasing<br />
Mark Strickler, V.P. of Marketing<br />
Doug Collins, V.P. Research & Development<br />
Papa Murphy’s International hired Clarice Turner as President and Chief Operating Officer. Previously, Turner served as<br />
Headquarters Operations Director at Taco Bell. Turner succeeds Mark Laramie. (NRN Daily NewsFax 4/18/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
491
Pappadeaux Seafood Kitchen<br />
Headquarters<br />
13939 NW Freeway, Houston, Texas 77040 USA<br />
Tel: (713)869-0151 Fax: (713)862-1917<br />
www.pappadeaux.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 125,000 117,000 115,000<br />
Company-owned ($000) 125,000 117,000 115,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 31 31<br />
Company-owned 32 31 31<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,950 3,750 3,700<br />
Concept Positioning |<br />
Pappadeaux Seafood Kitchen specializes in fresh-from-the-boat, Louisiana-style seafood. The casual-dining chain<br />
emphasizes a Mardi Gras spirit throughout the year. Managed by Houston-based Pappas Restaurant Group, Pappadeaux is<br />
the largest concept out of the company’s more than 60 single-unit restaurants and small chains.<br />
Units are generally freestanding and average 10,000–12,000 sq. ft. with seating for 300. Known as “a cross between fauxweathered<br />
bayou fishing camp and New Orleans neighborhood lunch joint,” Pappadeaux brings a taste of Louisiana to<br />
Arizona, Colorado, New Mexico, Texas, Illinois, Ohio and Georgia. Jazz memorabilia and other tokens of New Orleans are<br />
scattered through the restaurant, and units sometimes feature live zydeco and blues music.<br />
Chris and Harris Pappas started Pappas Restaurant Inc. in 1976. The family-owned company operates more than 60<br />
restaurants encompassing several different concepts, including Pappas Bros. Steakhouse, Pappadeaux Seafood Kitchen,<br />
Pappasito’s Cantina and Yia Yia Mary’s. Pappas Restaurant Inc. also owns 10% of Luby’s. The company has not disclosed<br />
future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Pappadeux Seafood Kitchen’s menu is centered on Cajun and Creole seafood served mesquite-grilled, charbroiled, fried or<br />
blackened. Favorites include shrimp, catfish, oysters and seafood platters, in addition to gumbo, etouffée and signature housemade<br />
desserts. Other menu items include Alaskan King Crab Legs; Catfish Po Boy; Texas Redfish; Asian Chicken Salad—<br />
with blackened pineapple glazed chicken, shredded lettuce and vegetables in a sesame orange vinegarette; Blackened<br />
Alexander—topped with shrimp, scallops and crawfish in a white wine cream sauce; and Cedar Plank Salmon—topped with<br />
garlic herb butter. Sides are available for purchase and include asparagus, dirty rice, french fries, garlic mashed potatoes and<br />
onion rings. Dessert offerings include bread pudding, key lime pie, sweet potato pecan pie and vanilla cheesecake. Alcoholic<br />
beverages are available. Prices range from $6.95–$32.95. Checks average $31.35 for dinner.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
492
<strong>Menu</strong> Development |<br />
Pappadeaux Seafood Kitchen introduced its Crawfish Catch 2007 dinner. The dinner features broiled crawfish with potatoes<br />
and corn priced at $2.95 for a pound and $5.95 for two pounds. It is available only for dine-in from March through April.<br />
(Company Website 3/27/07)<br />
Personnel |<br />
Celeste Noble, Director of <strong>Menu</strong> Development<br />
Harris Pappas, CEO<br />
Ernest Pekmezaris, CFO<br />
Laurie Froystein, V.P. of Purchasing<br />
Leslie Diagna, V.P. of Operations<br />
Lisa Beckman, V.P. of Marketing<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
493
Pappasito's Cantina<br />
Headquarters<br />
13939 NW Freeway, Houston, Texas 77040 USA<br />
Tel: (713)869-0151 Fax: (713)862-1917<br />
www.pappasitos.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 68,000 67,000 66,000<br />
Company-owned ($000) 68,000 67,000 66,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 20 20 20<br />
Company-owned 20 20 20<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,375 3,350 3,300<br />
Concept Positioning |<br />
Pappasito’s Cantina is a full-service Mexican restaurant. The family-oriented chain emphasizes a Tex-Mex menu featuring<br />
nachos, tacos, enchiladas, quesadillas, tamales and other Tex-Mex favorites. The restaurant is characterized by its friendly<br />
waitstaff and fun atmosphere. Pappsito’s is owned by Houston-based Pappas Restaurant Group (parent of more than 60<br />
single-unit restaurants and small chains, including Pappadeaux Seafood Kitchen). All Pappasito’s units are company-owned.<br />
Pappasito’s Cantina has one unit near Atlanta and another 19 units in Texas.<br />
Most Pappasito’s units are freestanding restaurants in cities or just off freeways; one unit is located within the Hobby Airport.<br />
Buildings feature weathered walls, colorful Mexican décor and Latin music. Each unit also has a full bar. Pappasito’s locations<br />
tend to be loud and crowded, with a younger clientele. Service style includes table service, takeout and catering for lunch and<br />
dinner. Dining areas are large and open, and open-air patios have heating systems that allow them to stay open almost yearround.<br />
Units range from 10,000–12,000 sq. ft. and many of the restaurants offer private and semi-private party rooms or patios<br />
for event catering that seat 20–110 guests.<br />
Pappasito’s Cantina was founded in Houston, TX, by Harris and Chris Pappas in 1976. Owned by Pappas Restaurant Family,<br />
the company is continuing growth each year with new locations across America.<br />
<strong>Menu</strong> Positioning |<br />
Pappasito’s Cantina restaurants are open for appetizers, lunch, dinner and drinks. The menu features traditional Tex-Mex<br />
items such as nachos, quesadillas, enchiladas, tacos and tamales, along with some signature dishes, including pork ribs,<br />
mesquite-grilled quail, and shrimp diablo. Pappasito’s is famous, however, for its fajitas, which it serves with montequilla, or<br />
seasoned Mexican butter; it was one of the first restaurants to popularize this Texas cowboy tradition. A full selection of<br />
alcoholic beverages is also served, including sangria, premium tequilas and specialty margaritas. The restaurant also offers a<br />
takeout menu and delivery services. Prices range from $3.95–$21.95. Checks average $27.<br />
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published.<br />
494
Personnel |<br />
Celeste Noble, Director of <strong>Menu</strong> Development<br />
Harris Pappas, CEO<br />
Ernest Pekmezaris, CFO<br />
Laurie Froystein, V.P. of Purchasing<br />
Leslie Diagna, V.P. of Operations<br />
Lisa Beckman, V.P. of Marketing<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
495
Pei Wei Asian Diner<br />
Headquarters<br />
7676 E. Pinnacle Peak RD, Scottsdale, Arizona 85255 USA<br />
Tel: (602)957-8986 Fax: (480)888-3001<br />
www.peiwei.com<br />
Ownership: Private<br />
Segment: Limited Service Asian/Noodle<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 180,373 134,073 95,473<br />
Company-owned ($000) 180,373 134,073 95,473<br />
Franchised ($000) - - -<br />
U.S. Number of Units 107 77 53<br />
Company-owned 107 77 53<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,000 2,075 2,142<br />
Concept Positioning |<br />
An offshoot of P.F. Chang's China Bistro, Pei Wei Asian Diner has positioned itself as the first nationwide fast-casual Asian<br />
concept. The concept aims to have an image and reputation that is independent from its aforementioned sister establishment,<br />
which boosts a full-service, upscale Chinese focus. P.F. Chang's China Bistro Inc. operates more than 75 Pei Wei locations<br />
primarily in the Southwest.<br />
Pei Wei's average unit size is 2,800 sq. ft., about half that of P.F. Chang's units. Restaurants seat approximately 80 customers<br />
and have an upbeat, contemporary ambiance that is achieved with red, black and yellow décor, recorded jazz music and an<br />
open kitchen.<br />
Pei Wei debuted in 2000 in the Phoenix suburb of Chandler, AZ. While continuing to grow in Southwestern markets, specific<br />
expansion plans have not been announced.<br />
<strong>Menu</strong> Positioning |<br />
Pei Wei Asian Diner integrates Chinese, Japanese, Korean, Thai and Vietnamese food into one menu featuring appetizers,<br />
salads, noodle bowls, rice bowls, signature dishes and beverages. Signature menu items include Spicy Korean—Korean hot<br />
pepper sauce, garlic, white mushroom, onion, carrot, long beans and toasted sesame seeds; Ginger Broccoli—sweet ginger<br />
soy, oyster sauce, scallion and broccoli; and Orange Peel—chili-bean sauce, orange peel, scallion, garlic, snap peas and<br />
carrots. Signature dishes come with a choice of chicken, shrimp, scallops, beef, vegetables or tofu. Appetizers include Minced<br />
Chicken in Cool Lettuce Wraps, Edamame, Spring Rolls, Crab Wontons, Wonton Soup and Hot & Sour Soup. Other favorites<br />
include Fried Rice, Pad Thai, Dan Dan Noodle Bowl and Low Mein Noodle Bowl. No alcohol is served. Takeout and kids’<br />
menus are available. <strong>Menu</strong> prices range between $1.95 and $9. Checks average $10.<br />
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published.<br />
496
Expansion Plans |<br />
Pei Wei Asian Diner opened its first Michigan outlet in Sterling Heights. The chain is a faster and cheaper version of its sister<br />
restaurant, P.F. Chang’s China Bistro. Meals at Pei Wei are cooked to order in 600-degree woks in an exhibition kitchen.<br />
There are currently more than 77 Pei Wei units nationwide. (Detroit Free Press 1/08/07)<br />
Pei Wei Asian Diner will open at the Polaris Neighborhood Center. The unit will mark the company’s second in the area.<br />
(Bizjournals.com 4/6/07)<br />
Pei Wei Asian Diner will open a location in Wichita, KS, in late 2007 or early 2008. The restaurant will be located in NewMarket<br />
Square and will be the first Pei Wei in Wichita. The unit will be between Verizon Wireless and T.G.I. Friday’s. (Bizjournals.com<br />
4/24/07)<br />
Promotion Plans |<br />
Pei Wei Asian Bistro plans to launch several new marketing initiatives this year. These will include a sponsorship deal with the<br />
Dallas Stars hockey team and a direct mail campaign to local businesses. In addition, a catering van with a kitchen-on-wheels<br />
trailer will be added in Phoenix and later rolled out to other cities. The company also plans to hire public relations agencies in<br />
select cities, particularly in new markets. Pei Wei Asian Bistro, which is owned by P.F. Changs China Bistro Inc., has 77<br />
outlets nationwide. (AZCentral.com 1/29/07)<br />
<strong>Menu</strong> Development |<br />
Pei Wei Asian Diner introduced its new Thai Dynamite salad and entree on February 22. The salad features shrimp, chicken or<br />
pork in a tangy and sweet blend of soy, lime and sriracha chile on a bed of baby greens, rice noodles, long beans, carrots,<br />
Japanese cucumber, tomato and Thai basil with Thai Sweet Chile dressing. The entrée features choice of protein, scallions,<br />
red bell pepper, carrots and Thai basil served with white or brown rice. Both items are priced from $6.95 to $9.00. (Company<br />
Release 2/22/07)<br />
Shrimp has gown in popularity in recent years, leading operators to add more shrimp dishes to meet the demand. This<br />
summer, several operators are rolling out shrimp salads. At The Beacon in Sag Harbor, NY, guests can dine on Chef Sam<br />
McCleland’s chopped salad with romaine and radicchio with crispy shrimp and a peanut-ginger dressing. In Blue Bell, PA, at<br />
Alison at Blue Bell, Chef Alison Barshak prepares a shrimp salad with salsa fresca of diced white onion, plum tomatoes,<br />
Serrano peppers, tomato juice, cilantro, lime juice, black beans and salt. P.F. Chang’s China Bistro menus a shrimp salad with<br />
marinated and wok-fried shrimp mixed with seasonal greens, candied papaya, grape tomatoes, red bell pepper, herbs and<br />
pine nuts and tossed in a spicy creamy dressing prepared with spicy Sriracha sauce. Pei Wei Asian Diner offered for a limited<br />
time a Thai Dynamite Shrimp Salad, with sweet soy, Sriracha and fresh lime-flavored shrimp mixed with baby greens, long<br />
beans, Japanese cucumbers and Thai basil. (Nation’s Restaurant News Online 6/18/07)<br />
Technology |<br />
Pei Wei Asian Diner implemented Radiant Systems Inc.’s Aloha TakeOut solution. Aloha TakeOut solution is add-on software<br />
for the Aloha Point-of-Sale solutions that allows restaurants to manage takeout orders more efficiently. (Company Release<br />
9/28/07)<br />
Personnel |<br />
Bob Tam, Executive Culinary Chef<br />
Richard Federico, CEO<br />
Mark Mumford, CFO<br />
Gary Schwartz, V.P. of Purchasing<br />
Tim McDougal, V.P. of Marketing<br />
News & Other |<br />
Pei Wei Asian Diner reported for the fourth quarter ended December 31 same-store sales declined 0.7%. (Company Release<br />
1/4/07)<br />
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published.<br />
497
P.F. Chang’s China Bistro Inc. reported for the first quarter ended April 1, revenues increased 16% to $264.4 million from<br />
$228.6 million for the same period last year. Same-store sales decreased 2.5% at the Bistro and increased 0.5% at Pei Wei.<br />
(Company Release 4/4/07)<br />
Pei Wei Asian Diner and Tin Star co-developer Mark Brezinski plans to introduce a new Indian-Asian concept named Bengal<br />
Coast in Dallas in December. The restaurant will have a combination fast-casual/full-service format. About a quarter of its<br />
seating will be devoted to a fast-casual format, in which patrons will order at the counter and will have food delivered to their<br />
tables. The other seats will be table service. Both sections will have the same menu. (Nation’s Restaurant News 10/9/07)<br />
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published.<br />
498
Perkins Restaurants & Bakery<br />
Headquarters<br />
6075 Poplar Ave. Suite 800, Memphis, Tennessee 38119 USA<br />
Tel: (901)766-6400 Fax: (901)766-6482<br />
www.perkinsrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 813,438 789,176 787,088<br />
Company-owned ($000) 295,762 282,750 281,292<br />
Franchised ($000) 517,676 506,426 505,796<br />
U.S. Number of Units 461 466 470<br />
Company-owned 155 151 153<br />
Franchised 306 315 317<br />
International Sales ($000) 30,353 28,851 27,141<br />
International Units 16 16 16<br />
Average Sales/Unit ($000) 1,722 1,683 1,665<br />
Concept Positioning |<br />
Perkins Restaurant & Bakery is a full-service, family-oriented chain with a varied menu with offerings for all three dayparts.<br />
The setting and atmosphere at Perkins Restaurant & Bakery is clean and friendly. The chain specializes in traditional<br />
American homestyle entrées, as well as an extensive selection of bakery and dessert items, including fresh muffins, cookies,<br />
pies and cakes. Most locations are open 24 hours. Castle Harlan, Inc. is the parent company of Perkins Restaurant & Bakery,<br />
through its portfolio company, Perkins & Marie Callendars, Inc. Approximately 64% of its locations are company operated; the<br />
remaining units are franchised. Perkins operates units nationwide, as well as in four Canadian provinces.<br />
Buildings are primarily freestanding structures located in rural, suburban and urban areas. Units vary in size and buildings can<br />
accommodate 150–220 seats. Interior décor varies from restaurant to restaurant. Large clean dining areas and brightly tiled<br />
bakeries are staples in existing and new units. A wood and brass-framed bakery display case, located next to the cashier,<br />
creates visual appeal. The company also has a stand-alone bakery prototype available for nontraditional location<br />
development.<br />
The business began in 1958 when Matt and Ivan Perkins opened their first pancake house in Cincinnati, OH. Over the next<br />
decade they developed franchises under their own name. In the late 70's the operations merged Smitty’s with Perkins and the<br />
names were unified. In 1986, Perkins Family Restaurants, L.P. succeeded to the franchise and restaurant operations of<br />
Perkins Restaurants, Inc., of which a master limited partnership was 50% owned by the public and 50% by The Restaurant<br />
Co., a private firm whose principal shareholder is Donald N. Smith. Smith also owns a significant share of Friendly Ice Cream<br />
Corp. In 1997, The Restaurant Co. offered to purchase the remaining partnership shares. The $77 million deal closed later that<br />
year and took the company private. In 2005, private equity firm Castle Harlan Inc. agreed to purchase The Restaurant Co.,<br />
now known as Perkins & Marie Callendar's Inc., for $245 million. In 2006, Perkins announced its acquisition of Marie<br />
Callender's Restaurant & Bakery chain for an undisclosed sum. The deal was completed in mid-2006. Today, Perkins & Marie<br />
Callendar's Inc.—a portfolio company owned by Castle Harlan—is the parent company of both concepts. Perkins Restaurant &<br />
Bakery is currently working on expanding into new markets.<br />
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published.<br />
499
<strong>Menu</strong> Positioning |<br />
Perkins Restaurant & Bakery is open for breakfast, lunch and dinner. The 140-item menu features breakfast dishes,<br />
appetizers, homestyle soups, salads, omelets, beef, chicken, seafood, burgers, entrées, melts, sandwich platters, sides,<br />
desserts and beverages. Signature breakfast entrées include Perkins Eggs Benedict, and Perkins Steak and Eggs. Other<br />
popular breakfast items are omelets, pancakes, waffles, French toast and egg classics. Lunch and dinner selections include a<br />
selection of appetizers, quesadillas, salads, soups, burgers, sandwiches, wraps, specialty entrees and seafood. All time<br />
favorites include Butterball Turkey and Dressing, Down Home Meatloaf, Grilled Pork Chops, Country Fried Steak, Roast Beef<br />
Dinner and Salisbury Steak. All entrées are served with rolls and a choice of two sides including side salad, steamed broccoli,<br />
glazed baby carrots, buttered corn, green beans with bacon, mashed potatoes, baked potatoes, fries, Mac & Cheese and hash<br />
browns. The on-premise bakery produces pastries, muffins, cookies, cakes and pies. A variety of non-alcoholic beverages are<br />
served. Kids, senior and takeout menus are available. <strong>Menu</strong> prices range from $1.69–$12.99. Checks average $15.50.<br />
Expansion Plans |<br />
Perkins Restaurant & Bakery will open a new location in Westowne Village in Neenah, WI, by the end of the year. The<br />
restaurant will seat 160 people. (Thenorthwestern.com 7/18/07)<br />
<strong>Menu</strong> Development |<br />
Perkins Restaurants rolled out Heath Crunch Pie, with layers of cream cheese and toffee mousse fillings topped with chunks<br />
of Heath Bars and finished with whipped cream. (Company Website)<br />
Perkins Restaurants introduced All Day Scramblers for breakfast, lunch and dinner for a limited time. Each item comes with a<br />
side of fruit and choice of buttermilk pancakes, toast or a Mammoth Muffin. Selections include Three Cheese, Country Cookin’<br />
and Meatlovers. New varieties are Turkey Asparagus Scrambler, with fried breakfast potatoes and scrambled eggs topped<br />
with oven-roasted, hand-carved Butterball turkey breast, asparagus and grilled tomato slices, topped with hollandaise sauce,<br />
shredded Jack cheese, tomatoes and parsley; and Steakhouse Scrambler, fried potatoes and scrambled eggs topped with<br />
grilled sirloin steak strips, sautéed fresh mushrooms, beef gravy, Swiss cheese, hollandaise sauce and parsley. (Company<br />
Website)<br />
Perkins Restaurants rolled out Island Seafood Fest for a limited time. The menu features: • Shrimp Monterey Pasta—grilled<br />
shrimp, asparagus and tomatoes tossed in an Alfredo sauce, garnished with parsley and Parmesan cheese and served with<br />
warm garlic bread • Captain’s Catch—golden fried cod fillets, jumbo shrimp and clam strips paired with onion rings, fries,<br />
cocktail and tartar sauces and a side salad • Shrimp Basket—“no tails” shrimp, lightly breaded and fried to a crispy golden<br />
brown and served with fries and cocktail sauce • Jumbo Shrimp Platter—jumbo butterfly shrimp breaded and deep-fried,<br />
served with cocktail sauce and a choice of two sides • Shrimp Trio—“no tails” fried shrimp, Bahama grilled shrimp and deepfried<br />
jumbo shrimp with cocktail sauce, herb-seasoned rice and a choice of one side. (Company Website)<br />
Perkins rolled out four wrap sandwiches for a limited time. The featured wraps include: • Grilled Steak Fajita Wrap—tender<br />
beef steak strips, grilled onions, green peppers, sour cream, Cheddar and pepper Jack cheeses and salsa in a Roma tortilla •<br />
Ham & Cheese Breakfast Wrap—three large scrambled eggs, honey ham, Swiss cheese and tomatoes in a Roma tortilla •<br />
Ham & Turkey BLT Wrap—thinly-sliced honey ham, oven-roasted turkey, applewood bacon, lettuce, tomatoes and Ranch<br />
dressing in a Roma tortilla • Buffalo Chicken Wrap—crunchy chicken tenders coated in buffalo hot sauce with lettuce, celery,<br />
tomatoes, pepper Jack cheese and blue cheese dressing in a Roma tortilla (Company Website)<br />
Personnel |<br />
Pete Pascuzzi, S.V.P. of Operations<br />
Joseph Trungale, CEO<br />
Jim Stryker, CFO<br />
Cheryl Ahlbrandt, V.P. of Marketing<br />
Tony Seta, V.P. Research & Development<br />
Perkins & Marie Callender’s Inc. promoted Pete Pascuzzi to Senior Vice President of Corporate Restaurant Operations,<br />
effective immediately. Previously, Pascuzzi served as Vice President of Operations for the 155 company-owned Perkins<br />
restaurants. (NRN Daily NewsFax 6/13/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
500
News & Other |<br />
Perkins and Marie Callender’s reported for the year a net loss of $10 million compared to a loss of $15.2 million in 2005.<br />
Revenues rose 84.8% to $594.1 million from $321.4 million 2005. Same-store sales grew 1.6% at Perkins and 0.4% at Marie<br />
Callender’s. (Company Release 3/27/07)<br />
Perkins & Marie Callender’s Inc. reported for the second quarter ended July 15 a net loss of $2.7 million compared to net<br />
earnings of $3.8 million for the same period last year. Revenues declined 5% to $130.1 million from $136.9 million. Samestore<br />
sales fell 0.9% at Perkins and 0.3% at Marie Callender’s. (Company Release 10/9/07)<br />
Perkins and Marie Callender’s Inc. reported a net loss of $4.3 million for the third quarter ended October 7, compared to a net<br />
loss of $7.9 million during the year-ago period. The company attributed the improvement to decreased food costs that resulted<br />
from the merger of the two chains in mid-2006. Same-store sales for the quarter increased 0.3% for Perkins and decreased<br />
2.5% for Marie Callender’s. (NRN.com 11/19/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
501
Peter Piper Pizza<br />
Headquarters<br />
14635 N. Kierland Blvd Suite 160, Scottsdale, Arizona 85254 USA<br />
Tel: (480)609-6400 Fax: (480)609-6520<br />
www.peterpiperpizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 154,247 141,841 132,107<br />
Company-owned ($000) 58,296 53,437 46,993<br />
Franchised ($000) 95,951 88,404 85,114<br />
U.S. Number of Units 102 104 111<br />
Company-owned 38 38 43<br />
Franchised 64 66 68<br />
International Sales ($000) 35,846 29,128 22,022<br />
International Units 33 30 26<br />
Average Sales/Unit ($000) 1,512 1,364 1,125<br />
Concept Positioning |<br />
Peter Piper Pizza owns, operates and franchises its limited-service, family-oriented pizza restaurants. The company, based in<br />
Scottsdale, AZ, has a total of 139 locations in the Southwestern and Western U.S., including Arizona, California, Nevada, New<br />
Mexico and Texas as well as 34 franchised units in Mexico.<br />
Designed to offer families and groups a fun-oriented environment, complete with game rooms and entertainment for kids, most<br />
units are located in-line with other stores and seat approximately 300–400 patrons. Units typically range in size from 8,500–<br />
15,000 sq. ft. Peter Piper's most recent prototype offers three seating options: a relaxed area with booths and TVs tuned to<br />
sporting events, appealing to adults; an area with moveable tables and chairs geared toward family dining; and extended<br />
tables and benches to accommodate large groups and parties. Its brightly-colored units contain 30–50 video and redemption<br />
games. In addition, Peter Piper is enhancing technology in its units, with the introduction of free Wi-Fi services for its<br />
customers in four of its units. In 2007, the company will roll out free wireless capabilities to customer in all of its companyowned<br />
stores. Other technological advancements include new touch-screen ordering and point-of-sale systems.<br />
Anthony M. Cavolo and his son-in-law, Stephan Herrgesell, opened the first Peter Piper Pizza restaurant in 1973 in Glendale,<br />
AZ, a suburb of Phoenix. In 1992, the company was acquired by Venture West Group. In the summer of 1995, Peter Piper<br />
acquired 30-unit Pistol Pete’s Pizza in Phoenix. In early 2007, Peter Piper Inc., the operator and franchisor of the chain, was<br />
acquired by ACON Investments Inc., a Washington, D.C.-based private equity firm. Terms of the deal were not disclosed. The<br />
company plans to launch nearly 40 new locations through 2007 and will focus beyond its core market in the West and<br />
Southwest, with planned sites in Florida, Illinois and the Northeast.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
502
<strong>Menu</strong> Positioning |<br />
Peter Piper's menu features a variety of pizzas, salads, sides, soft drinks and beer. Signature item are its pizzas, available in<br />
hand tossed, pan or original thin, with 15 topping selections and 3 cheeses. Pizzas are available in medium, large and x-large<br />
sizes. Pizza selection includes Chicago Classic—pepperoni, sausage, mushrooms, green peppers, herbs and spices;<br />
California Classic—mushrooms, green peppers, onions, black olives and sliced tomatoes; and Bacon Double Cheeseburger—<br />
hamburger, bacon, onions, tomatoes and mozzarella and Cheddar cheeses. Sides include garlic cheese bread, breadsticks,<br />
wings and chicken strips. Locations also offer an all-you-can-eat lunch buffet and express lunch pizzas. <strong>Menu</strong> prices range<br />
from $2.49–$13.99. Peter Piper's typically serves families and groups, and estimates that checks average $19 per party.<br />
Personnel |<br />
Frank Sbordone, CEO<br />
Tim Flynn, CFO<br />
Steve Dunsire, V.P. of Operations<br />
Laurie Katapski, CMO<br />
News & Other |<br />
Peter Piper Inc. was purchased by Acon Investments for an undisclosed sum. Acon, a Washington, D.C.-based private equity<br />
firm, says it plans to keep the Scottsdale, AZ based chain’s chief executive and management team in place. Acon anticipates<br />
adding at least 20 locations in 2007. New units are expected to include company-owned outlets in Arizona and Texas as well<br />
as franchised locations in several markets, including six restaurants in Mexico. Other markets the chain is exploring include<br />
Portland, OR; Seattle; Salt Lake City; Denver; San Francisco and San Jose, CA. Peter Piper operates and franchises 132<br />
units in the Southwest and Mexico. (NRN Daily NewsFax 1/09/07; Company Release 1/09/07)<br />
Peter Piper Pizza donated 1,600 pizzas for school parties to schools in Arizona. The chain donated the pizzas in recognition of<br />
the $160,000 raised by the schools’ students and staff in support of the Pennies for Patients program. (Pizzamarketplace.com<br />
8/24/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
503
Piccadilly<br />
Headquarters<br />
3232 S. Sherwood Forest Blvd., Baton Rouge, Louisiana 70816 USA<br />
Tel: (225)293-9440 Fax: (225)296-8370<br />
www.piccadilly.com<br />
Ownership: Public<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 240,000 238,500 275,000<br />
Company-owned ($000) 240,000 238,500 275,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 130 133 132<br />
Company-owned 130 133 132<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,820 1,800 1,800<br />
Concept Positioning |<br />
Piccadilly is a chain of limited-service cafeterias. The serving line for each meal offers more than 80 items from a rotation of<br />
more than 350 recipes. The public chain is owned by Yucaipa Companies and operates 130 company-owned units in the U.S.<br />
Most units average 10,000 sq. ft. and seat 350 patrons; a smaller prototype, approximately 7,500 sq. ft. with seating for 200, is<br />
also used. Stores are located in suburban shopping malls and strip centers or are freestanding. Dining room décor is tailored<br />
to each locale. Approximately a third of units offer double serving counters; the rest feature a single line. In addition, the<br />
company has developed a Piccadilly Express counter system designed to increase its takeout revenues. The program has hot<br />
counters that allow customers to view and select foodstuffs. The system has not only sped up the processing of takeout<br />
orders, but also increased takeout 20%-60% in units where the system has been added.<br />
Piccadilly Cafeteria was founded in 1944, when T.H. Hamilton acquired an existing Piccadilly in downtown Baton Rouge, LA.<br />
The company incorporated in 1965 and first offered its stock to the public in 1978. Ralph & Kacoo's Seafood Restaurants, was<br />
acquired in 1988. In 1998, the company acquired Morrison’s Cafeterias in a deal worth some $57 million; all units have been<br />
either converted to its brand name or closed. In 1999, the company announced the sale of Ralph & Kacoo’s to Cobb<br />
Investment Co. In 2004, Piccadilly filed for bankruptcy and was acquired by investment group Yucaipa Companies. Currently,<br />
there are no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Piccadilly’s menu features a variety of soups, salads, entrées, sides, desserts and beverages. Highlights of its offerings<br />
include ethnic and regional favorites such as Carrot & Raisin Salad, Neptune Salad, Crawfish Etoúffée, Texas Ranch Chili,<br />
Chicken & Dumplings, Chocolate Chip Pecan Pie and Strawberry Cheesecake. Other entrées include grilled Monterrey<br />
Chicken with sautéed mushrooms and peppercorn sauce, bacon and cheese; Blackened Gulf Shrimp with Fettuccine; sautéed<br />
BBQ Shrimp served over mashed potatoes; and Italian Meat Loaf, with pork, anise, tomatoes and mushrooms, served with<br />
marinara sauce. <strong>Menu</strong> prices range from $5.99–$9.99. Checks average $9.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
504
<strong>Menu</strong> Development |<br />
Piccadilly Cafeterias introduced its new Mild Buffalo-Style Half Chicken for $6.99, Shrimp Diablo for $7.99 and Grilled Pork<br />
Chop with Cinnamon Apples for $7.99. The new entrees are available for a limited time. (Company Website 1/2/07)<br />
Piccadilly Cafeterias rolled out Three New Chef’s Creations for a limited time. The menu features Cajun Baked Chicken<br />
($6.99), Mediterranean Tilapia ($6.99) and Burgundy Pepper Sirloin Steak with Twice Baked Potatoes ($8.99). The entrées<br />
are available for lunch and dinner. (Company Website)<br />
Personnel |<br />
David Green, CEO<br />
Tom Sandeman, CFO<br />
Patrick Prudhomme, V.P. of Purchasing<br />
Christopher Sanchez, V.P. of Operations<br />
David Stidham, V.P. of Marketing<br />
Piccadilly Restaurants LLC hired David Stidham as Vice President of Marketing. Previously, Stidham served as Director of<br />
Marketing for Shoney’s. (NRN Daily NewsFax 8/1/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
505
Pick Up Stix<br />
Headquarters<br />
1330 Calle Avanzado, San Clemente, California 92673 USA<br />
Tel: (800)400-7849 Fax: (949)334-0944<br />
www.pickupstix.com<br />
Ownership: Private<br />
Segment: Limited Service Asian/Noodle<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 108,000 104,000 104,000<br />
Company-owned ($000) 100,000 90,000 92,000<br />
Franchised ($000) 8,000 14,000 12,000<br />
U.S. Number of Units 125 120 100<br />
Company-owned 117 86 86<br />
Franchised 8 34 14<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 950 1,000 1,105<br />
Concept Positioning |<br />
Pick Up Stix is a limited-service Chinese bistro that features healthy Asian cooking with American-style service. Appealing to<br />
people in a hurry, dishes are quickly made with quality and health in mind. In fact, about 20 items including all of its salads and<br />
soups as well as a few of appetizers carry a symbol—chop sticks holding a heart—to connote its healthy positioning. Also for<br />
those items, meats are trimmed of fat and cooked in a lighter fashion, with fewer oils than traditional Chinese dishes. Carlson<br />
Restaurants Worldwide, parent company of T.G.I. Fridays, owns Pick Up Stix. Carlson currently operates more than 125 Pick<br />
Up Stix units across the U.S.<br />
Units, which measure 1,400–2,500 sq. ft. and seat 20–60 guests, feature a high-tech design complete with neon lights, an<br />
exhibition kitchen made with stainless steel and a Pick-Up-Sticks game hanging from the ceiling. Approximately 60% of its<br />
business is takeout and 40% is casual dine-in. A recent systemwide redesign program includes a revamped menu, updated<br />
color schemes and increased emphasis on its wok chefs.<br />
Charles Zhang and Bill Beckett established Pick Up Stix in 1989 with a full-service restaurant called Stix in Laguna Niguel, CA.<br />
Soon thereafter, the company opened its first Pick Up Stix. In addition to its restaurants, the company also has a 33,000-sq.-ft.<br />
compound—of which 7,000 sq. ft. is a processing plant under USDA inspection—in San Clemente, CA. It also runs a supply<br />
company that provides everything except equipment and owns a construction company that builds its units. Carlson<br />
Restaurants Worldwide acquired Pick Up Stix in June 2001. While the company has not outlined current growth strategies,<br />
expansion of Pick Up Stix continues in markets throughout the U.S.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
506
<strong>Menu</strong> Positioning |<br />
The menu at Pick Up Stix lists traditional Chinese favorites for lunch and dinner, prepared with less oil, emphasizing the<br />
chain's commitment to lighter fare. Its signature item is its House Special Chicken—chicken in a caramelized sauce with white<br />
wine, garlic, green onions and soy. The remaining selection features appetizers, soups, entrées, sides, desserts and<br />
beverages. Popular menu items include Cream Cheese Wontons—cream cheese, green onion, diced water chestnuts and<br />
white pepper in a wonton skin; Sweet & Sour Chicken—crispy white meat chicken with broccoli, carrots, onions and pineapple<br />
in golden sweet and sour sauce; and Citrus Wasabi Chicken Salad—romaine, celery, red cabbage, red bell peppers,<br />
sunflower seeds, sesame seeds and chicken breast with creamy citrus wasabi dressing. Its newest entrée is Crispy Honey<br />
Chicken. “Asian Flavors” come with a choice of chicken, shrimp, beef or tofu and are served with steamed white rice or brown<br />
rice. The selection includes Garlic Sauce, Spicy Sweet & Sour, Mongolian, Kung Pao, Szechwan and Orange Peel. Also<br />
popular are Teriyaki Bowls served over steamed white or brown rice with broccoli, carrots, teriyaki sauce and sesame seeds.<br />
Fried rice choices include House (with shrimp, beef and chicken), Shrimp, Beef, Chicken, Vegetable or Egg. A separate lunch<br />
menu is offered until 3 p.m. and features smaller portions and lower prices. The dessert menu features Apple Cinnamon Rolls<br />
and Gourmet Cookies. A kids menu is also available. No alcohol is served. <strong>Menu</strong> prices range from $2.99–$8.99; higher priced<br />
items include Family Value Packs for $24.99. Checks average $8.<br />
Promotion Plans |<br />
Pick Up Stix celebrated the opening of its 125th restaurant in Fontana, CA, by giving away 125 entrees. (Prnewswire.com<br />
1/16/07)<br />
Personnel |<br />
Bill Allen, CEO<br />
Derk Montgomery, CFO<br />
Irean Wenzel, V.P. of Purchasing<br />
William Kadow, V.P. of Operations<br />
Andi Jacobs, V.P. of Marketing<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
507
Pizza Hut<br />
Headquarters<br />
14841 Dallas Pkwy., Dallas, Texas 75254 USA<br />
Tel: (972)338-7700 Fax: (972)338-6869<br />
www.pizzahut.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 5,150,000 5,326,000 5,261,000<br />
Company-owned ($000) 1,360,000 1,589,000 1,619,000<br />
Franchised ($000) 3,790,000 3,737,000 3,642,000<br />
U.S. Number of Units 7,532 7,566 7,500<br />
Company-owned 1,431 1,655 1,741<br />
Franchised 6,101 5,911 5,759<br />
International Sales ($000) 4,170,000 3,855,000 3,545,000<br />
International Units 5,153 5,006 4,774<br />
Average Sales/Unit ($000) 798 810 794<br />
Concept Positioning |<br />
Pizza Hut is the largest pizza chain in the world. Pizza Hut is a full-service restaurant operating in food court express, kiosks,<br />
and home delivery units. Pan pizza accounts for 60% of pizza product sales. Yum! Brands is the parent company of Pizza Hut.<br />
Yum! franchises the majority of its Pizza Hut locations.<br />
Most units are freestanding, with 1,500–2,500 sq. ft. and seating for 75–125 patrons. Exteriors are largely brick and have the<br />
chain's signature red roof. Front and back of the house includes a conveyor oven, equipment to proof and hold pizza dough,<br />
and four interior decor options. Expansion plans call for the development of co- and multi-branded sites with other YUM!<br />
concepts, leading to more versatile units in design and décor. In May 2006, YUM! announced that most new Long John<br />
Silver's and A&W locations will now be multi-branded with its flagship concepts—KFC, Pizza Hut and Taco Bell. Over the next<br />
few years, Pizza Hut plans to convert all of its units in Wichita, KS and the surrounding area to its new concept, Pizza Hut<br />
Wing Street. Pizza Hut Wing Street units will offer the same menu items as typical Pizza Hut restaurants, with the inclusion of<br />
various types of chicken wings. The Pizza Hut Wing Street interior features a bar serving beer, wine and frozen drinks and<br />
offers seating for 80–135 guests.<br />
Pizza Hut was founded in Wichita, KS, in 1958 by Frank and Dan Carney and their partner, John Bender. In 1959 the firm<br />
incorporated and established its first franchise in Topeka. The chain went public in 1969 and was acquired by PepsiCo in<br />
1977. In early 1997, PepsiCo announced its intent to spin-off its restaurant holdings into a separate public company. The spinoff<br />
was completed in October 1997 and the chain’s parent was Tricon Global Restaurants, Inc, renamed YUM! Brands, Inc. in<br />
May 2002. Pizza Hut plans to continue its expansion efforts, focusing on international markets such as Poland and China,<br />
where it hopes to have 2,000 units. The company also plans to continue to expand its Pizza Hut Wing Street concept, hoping<br />
to have 1,000 locations open by the end of 2007.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
508
<strong>Menu</strong> Positioning |<br />
Pizza Huts menu features appetizers, salads, pizzas, dessert and beverages. Its signature item is pizza, available in Pan,<br />
Hand-Tossed Style, Thin N’ Crispy and Stuffed Crust varieties. Favorites include Cheese Lover’s, Veggie Lover’s, Chicken<br />
Supreme and Meat Lover’s. The chain recently introduced Hand-Tossed Style Pizza, prepared with a light crust and Italian<br />
sauce. Sides include breadsticks, Buffalo wings, cheese sticks, garden salad and Caesar salad. Beer and wine are served in<br />
some markets. Pizza Hut's "Italian Bistro" concept features Italian sausage, penne, Chicken Pomodoro, personal-sized pizzas<br />
and toasted sandwiches such as steak and cheese as well as roasted turkey provolone. This customizable item gives<br />
customers the choice of four individual toppings or specialty toppings like Meat Lover's, Veggie Lover's, Cheese Lover's,<br />
Pepperoni Lover's or Supreme for $13.99. The WingStreet Wing options include Buffalo Burnin’ Hot, Buffalo Medium, Buffalo<br />
Mild, Honey BBQ, Garlic Parmesan, Spicy BBQ, Cajun and Spicy Asian. Desserts and Pepsi products are also listed. <strong>Menu</strong><br />
prices range from $1.99–$16.24. Checks average $14.96.<br />
Expansion Plans |<br />
Yum! Brands is holding private investor meetings in an effort to open up to 17 franchised locations in the Providence, RI, area.<br />
The proposed units will be multibranded Pizza Hut and WingStreet stores. Yum! has set the informational meetings for<br />
November 28 and 29. (Company Release 11/19/07)<br />
Promotion Plans |<br />
Pizza Hut will reintroduce its Cheesy Bites Pizza during the Super Bowl with two television commercials featuring a “hidden<br />
code” that can be text-messaged to a special phone number to enter a prize giveaway. The company expects the promotion to<br />
be as successful as it was during last year’s Super Bowl. (NRN Daily NewsFax 1/29/07)<br />
Pizza Hut launched a promotion that involves customer-created videos on YouTube.com. Customers can create a video that is<br />
two minutes long showing Pizza Hut pizza and why they deserve to be “America’s favorite pizza fan.” The winner will be an<br />
“honorary vice president of pizza” and will receive a three-month lease on a “company car,” free pizza for a year and a<br />
$25,000 “salary.” The three finalists will have their videos posted on the Pizza Hut website from April 9 to April 22. (NRN Daily<br />
NewsFax 2/26/07)<br />
Pizza Hut announced the three finalists in its “America’s Favorite Pizza” contest. The finalists are Mick Mathis, Matt Conners<br />
and Chris Mundell. The winner will be announced after votes are taken online through April 22. The winner will receive the<br />
honorary title of “Vice President of Pizza” and will receive a $25,000 “salary,” free pizza for a year and the use of a “company<br />
car” for three months. The two first-prize winners will receive a pizza party for 100 guests, and 25 runners-up will receive pizza<br />
for a month. (Company Release 4/10/07)<br />
Pizza Hut Inc. gave away free slices of its hand-tossed style pizza the afternoon of May 1. The “Free Slice of Pizza Day”<br />
giveaway promoted the revamped hand-tossed pizza, which now has a lighter crust and zesty sauce. (Bizjournals.com<br />
4/30/07)<br />
Pizza Hut BOOK IT! Program announced the 10 winners in the “All-Star Reader” classroom sweepstakes. The sweepstakes<br />
recognizes and rewards teachers and their classes for meeting their reading goals. Teachers qualified by confirming that<br />
100% of their students met their reading goals all six months of the 2006-2007 BOOK IT! Program. Each winning classroom<br />
will receive one $100 Barnes and Noble gift card for classroom use, a $500 airline gift card for the teacher’s personal use, and<br />
a drawstring backpack containing a selection of BOOK IT! Program incentives and a $15 Pizza Hut gift card for each student<br />
in the class. (Company Release 5/15/07)<br />
Pizza Hut teamed with Pepsi to offer a Big Game Sweepstakes. To receive the game code, participants order a two-liter Pepsi<br />
with a Pizza Hut order. Game codes can be entered online for a chance to “Call Your Play” in an online version of the new<br />
Madden NFL ’08 video game. In addition, game codes will enter the participant into the Call Your Play game for a chance to<br />
win other prizes, including NFL gear, DVDs and memorabilia. (Company Website 9/13/07)<br />
Pizza Hut is offering its P’zone pizza for $5.99 or two for $10.99. P’zone pizzas feature pizza toppings and cheese wrapped<br />
inside a baked calzone-style pizza crust and come in three flavors: meaty, classic and pepperoni. (Company Website 10/5/07)<br />
<strong>Menu</strong> Development |<br />
Pizza Hut reintroduced its hand-tossed style pizza. The reinvented hand-tossed style pizza has a softer and sweeter crust and<br />
zesty sauce; an overall more flavorful pizza. The company will promote the pizza widely to gain a bigger share of the handtossed<br />
pizza market, a strategy that it didn’t use when the pizza was first introduced. (News.cincinnati.com 4/30/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
509
Yum! Brands is expanding Taco Bell’s tomato deal with a Florida farmworker group to cover all of its restaurant chains,<br />
including Pizza Hut, Long John Silver’s and A&W. Yum! Brands previously agreed to pay a penny-a-pound surcharge for<br />
tomatoes used by Taco Bell after a pressure campaign from the Coalition of Immokalee Workers. Yum! says it is expanding<br />
the surcharge agreement with the hope that other restaurants and supermarkets will follow its example. (AFX.com 5/19/07;<br />
NRN Daily NewsFax 5/22/07)<br />
Pizza Hut premiered its Dippin’ Strips Pizza, made for dipping in marinara, garlic or creamy ranch sauce. A one-topping<br />
Dippin’ Strips Pizza is menued at $9.99 for a limited time. (Company Website)<br />
Pizza Hut announced the introduction of its Double Deep Pizza. The limited-time addition features double the toppings and<br />
50% more cheese than the chain’s regular pizza. The pizza is available in Supreme, Meaty and Veggie versions for $12.99.<br />
The Double Deep Pizza launch on November 18 is supported by a national ad campaign featuring the Bee Gees’ song, “How<br />
Deep is Your Love.” (QSRmagazine.com 11/16/07)<br />
Franchise Activity |<br />
Pizza Hut franchisee ADF Cos. has purchased 165 outlets of the chain through several transactions. ADF reportedly spent<br />
$115 million between February and November for the acquisitions and refinancing. The franchisee currently owns more than<br />
350 Pizza Huts in 11 states, including New York, New Jersey and Tennessee as well as in Washington, DC. (NRN Daily<br />
NewsFax 12/06/06)<br />
Pizza Hut will sell 59 outlets to NPC International Inc. for $27.1 million. These will include 40 units in Idaho, four in eastern<br />
Oregon and 15 in Washington. NPC International is the largest Pizza Hut franchisee, with 815 restaurants and<br />
delivery/carryout stores in 23 states. (NRN Daily NewsFax 2/14/07; IdahoBusinessReview.com 2/13/07; Kansas City Star<br />
2/13/07; Company Release 2/12/07)<br />
Pizza Hut franchisee NPC International Inc. has acquired 59 Pizza Hut locations from four other franchisees in Oregon, Idaho<br />
and Washington for a total of $27.1 million. (Bizjournals.com 3/14/07)<br />
International Activities |<br />
Pizza Hut is targeting China with new menu items and more locations. The chain operates 225 outlets in 51 cities in the<br />
country and plans to eventually have 2,000 restaurants. Pizza Hut also menus several items in China which are not found in<br />
domestic units. These include escargot; a wasabi and salmon pizza topped with octopus; and spaghetti in a chicken curry<br />
sauce. Pizza Hut also has 30 delivery locations throughout the country and has been promoting delivery service through a TV<br />
ad campaign that highlights the lowered price of delivery service pizzas. (Reuters 11/14/06)<br />
Burger King signed an agreement with AmRest Holdings N.V. for the first Burger King outlet in Poland. The unit is slated to<br />
open in Warsaw later this year. AmRest is a Poland-based franchisee of KFC and Pizza Hut. (AFX International Focus<br />
3/12/07; NRN Daily NewsFax 3/14/07; Foodservice Equipment & Supplies 3/14/07)<br />
Yum! Brands’ China division is seeing 20% growth in operating profit this year. The company plans to add 300 more KFC units<br />
in mainland China, and Pizza Hut will open 20 home-delivery and 70 casual-dining outlets there. Yum! will also roll out several<br />
new products to mark KFC’s 20th year in China, including beverages and desserts. In addition, it plans to target the youngadult<br />
demographic with new advertising. (NRN Daily NewsFax 5/11/07)<br />
Pizza Hut is targeting India for a television advertising campaign, the chain’s first ever in the country. Pizza Huts in India offer<br />
local flavors, including masala and tandoori, and vegetarian dishes. (Nation’s Restaurant News 7/30/07)<br />
Pizza Hut of Japan launched a promotional tie-in with the upcoming anime movie “Evangelion 1.0. You are (Not) Alone.”<br />
Customers will have a chance to win a life-size cardboard figure of a character from the movie when they order a medium<br />
pizza and receive a promotional pizza box. (Pizzamarketplace.com 9/10/07)<br />
Technology |<br />
Pizza Hut is now offering online ordering on its Spanish-language website, www.espanol.pizzahut.com. Orders can be placed<br />
up to seven days in advance and can be paid for with major credit cards. (NRN Daily NewsFax 1/23/07)<br />
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510
Pizza Hut is now offering online ordering at nearly all of its U.S. delivery locations. The new Pizza Hut website features<br />
innovative tools that make online ordering easy. Customers can fill out a profile that Pizza Hut uses to link customers to<br />
special offers, coupons, menu and prices and create customized “pizza playlists” the contain favorite pizza orders. Full menu<br />
options are available and customers can order up to seven days in advance. (Company Release 6/5/07)<br />
Personnel |<br />
Brian Niccol, Chief Marketing Officer<br />
David C. Novak, CEO<br />
Mike Tattersfield, CEO<br />
Rick Carucci, CFO<br />
Leah Evans, Chief Food Innovation Officer<br />
Pizza Hut promoted Brian Niccol to Chief Marketing Officer, replacing Bill Ogle. Niccol previously served as Vice President of<br />
National Brand Marketing and Strategy. (Qsrmagazine.com 9/20/07)<br />
News & Other |<br />
Pizza Hut is rolling out a new design for its WingStreet concept. Approximately 800 Pizza Hut restaurants are co-branded with<br />
the chicken wing concept. WingStreet was originally envisioned as a delivery and takeout concept to help expand Pizza Hut’s<br />
menu choices, but the new Pizza Hut/WingStreet outlets offer seating for 80–135 customers as well as a bar serving beer,<br />
wine, and frozen drinks. Three co-branded dine-in units are expected to open in Sacramento, Hayward and South Lake<br />
Tahoe, CA, within the next four months. In addition, Pizza Hut has launched a marketing campaign with television, radio and<br />
print ads in 13 markets, announcing the WingStreet expansion and using the tagline, “Let Pizza Hut deliver WingStreet to your<br />
street.” The company is hoping to have 1,000 outlets of its WingStreet brand by 2007. (Nation’s Restaurant News Online<br />
11/01/06)<br />
Pizza Hut is continuing to test Pizza Hut Italian Bistro, its more upscale dine-in concept. There are currently 100 such<br />
restaurants in operation and the company is still mulling expansion plans. (Nation’s Restaurant News Online 11/01/06)<br />
A Pizza Hut customer filed a personal injury suit against a man she held a door open for at the restaurant. The customer,<br />
Amanda Verett, claims that she held the door open for herself and a man behind her when the man allegedly grabbed the door<br />
in a way that caused the door to sharply and suddenly move. She was injured as a result. She also claims that she was unable<br />
to avoid a later injury of torn tendons and injuries to her left hand and wrist due to the injury she suffered at Pizza Hut. Verett<br />
claims that the injuries have caused her severe pain, discomfort, disfigurement and medical expenses and is seeking<br />
$150,000, plus costs, in damages. (Madisonrecord.com 4/20/07)<br />
Pizza Hut’s former takeout location in Eugene, OR, is being replaced with an outlet that combines Pizza Hut’s menu with<br />
WingStreet items. The Eugene location is the first of its kind in the state of Oregon, but the company is looking to convert all<br />
Pizza Hut locations in Eugene and Springfield to the co-branded concept. Two other Pizza Huts in Eugene are currently under<br />
development for the co-branded concept. (Registerguard.com 6/15/07)<br />
Pizza Hut, Papa John’s and other large pizza chains had to raise the prices of their pizzas because of rising cheese costs.<br />
Both Pizza Hut and Papa John’s raised the prices of cheese pizzas to equal the price of a one-topping pizza. The cheese<br />
pizzas cost the chains more because they require an extra cup of cheese. (Dailyherald.com 7/11/07)<br />
Pizza Hut franchisee NPC International Inc. reported for the second quarter net earnings of $1.4 million compared to a net loss<br />
of $16.1 million for the same period last year. Company revenues increased 15.7% to $172.0 million from $148.7 million.<br />
Same-store sales rose 3.5%. (Bizjournals.com 8/13/07)<br />
Pizza Hut has signed a multiyear deal with the Pittsburgh Penguins to be the hockey team’s official pizza concessionaire. The<br />
chain will supply onsite concessions and restaurants in the Penguin’s current home, Mellon Arena, and will also service the<br />
new arena slated to open for the 2010-2011 season. Yum Brands Inc., parent company of Pizza Hut, also operates Taco Bell,<br />
KFC, Long John Silver’s and A&W All-American Foods. (Business First of Louisville 8/9/07; Yahoo! Finance 8/9/07)<br />
Yum! Brands Inc. plans to add Wing Street chicken operations to more of its Pizza Hut restaurants. Wing Street sells chicken<br />
wings in flavors such as Buffalo Burnin’ Hot, Honey Barbecue and Garlic Parmesan, at 1,000 locations nationwide. Yum!<br />
Brands operates and franchises more than 5,100 Pizza Hut restaurants worldwide. Its other brands include KFC, Long John<br />
Silver’s, Taco Bell and A&W. (The Dallas Morning News Online 10/10/07)<br />
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511
Pizza Huts in southeast Wisconsin have been purchased by Sovereign Investment Co., a New Jersey real estate investment<br />
firm, for $15.3 million. Sovereign bought 20 units from Wisconsin Hospitality Group LLC, using a 10–15 year long-term<br />
allowing Wisconsin Hospitality Group to lease back the buildings. Wisconsin Hospitality Group owns and operates 86 Pizza<br />
Huts in Wisconsin in addition to 41 Applebee’s Neighborhood Grill and Bar restaurants and one Dos Bandidos Mexican<br />
restaurant. (The Business Journal of Milwaukee Online 10/12/07)<br />
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published.<br />
512
Pizza Inn<br />
Headquarters<br />
3551 Plano Parkway, The Colony, Texas 75056 USA<br />
Tel: (469)384-5000 Fax: (469)384-5058<br />
www.pizzainn.com<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 136,000 145,822 152,439<br />
Company-owned ($000) 1,000 1,003 1,232<br />
Franchised ($000) 135,000 144,819 151,207<br />
U.S. Number of Units 296 313 342<br />
Company-owned 3 5 2<br />
Franchised 293 308 340<br />
International Sales ($000) 15,000 14,120 13,641<br />
International Units 76 73 70<br />
Average Sales/Unit ($000) 450 461 438<br />
Concept Positioning |<br />
Pizza Inn is one of the largest limited-service pizza chains in the U.S. The publicly held chain operates 372 units worldwide,<br />
only three of which are company-owned.<br />
Most full-service restaurants are freestanding, located close to offices, shopping centers and residential areas. Typical units<br />
occupy 3,000–5,000 sq. ft. and seat 130–185 customers. The interior decor is contemporary and family-friendly. The company<br />
also has a 1,000-sq.-ft. delivery/carryout prototype—known as its "Delco" unit— that has limited or no seating but offers the<br />
same menu as its traditional full-service units. Its third prototype is an "Express" design for nontraditional sites; Express units<br />
occupy 200–400 sq. ft. and offer a limited menu skewed heavily to pizzas and beverages. These stores are usually located at<br />
c-stores, airport terminals and college campuses. A self-serve buffet prototype has also been introduced. Slightly larger than<br />
the Delco prototype (2, 400–2, 600-sq. ft., with seating for 60-70), the self-serve design features a carryout station as well as a<br />
buffet and beverage station. Business is takeout-based.<br />
Pizza Inn was founded in 1960 in Dallas by Joseph Spillman. The chain started franchising in 1963. It went public in 1979. It<br />
was acquired in 1987 by Pantera's Corp., a regional pizza chain based in St. Louis, and later fell into bankruptcy. In 1990, the<br />
current company emerged from bankruptcy as the franchisor of Pizza Inn restaurants. In addition, Pizza Inn operates its own<br />
food purchasing and distribution division called Norco, which provides units with about 80% of their food products and<br />
restaurant supplies. Pizza Inn is backed by investment firm Newcastle Capital Group, which owns 35% of the company. Pizza<br />
Inn has identified Guatemala as a growth market for the chain. Most recently, the company has signed a development<br />
agreement to launch 16 outlets in Guatemala through 2011.<br />
<strong>Menu</strong> Positioning |<br />
Pizza Inn is open for lunch and dinner and features a variety of pizzas, appetizers, salads, sandwiches, entrées and<br />
beverages. Signature items are a wide selection of pizzas, including Original Thin, New York Pan, Italian Hand-Tossed and<br />
Stuffed Crust pizza. Popular pizzas include Bacon Cheddar Ham, Bacon Cheeseburger, Taco Pizza, Chicken Fajita and<br />
Pepperoni Max. Also offered are pepperoni wraps, spicy wings, hot and cold pastas and salads. Subs include Meatball,<br />
Chicken Fajita, Ham & Cheese and Italian. Lunch and evening buffets are available in some units. Beer and wine are served in<br />
some locations. <strong>Menu</strong> prices range from $1.79–$15.99. Checks average $16.<br />
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published.<br />
513
Expansion Plans |<br />
Pizza Inn Inc. has agreed to sell its real estate, distribution facility and corporate office building to Intage Interests L.P. for<br />
$11.5 million. The transaction is due to close on December 19. (Company Release 10/20/06)<br />
Pizza Inn is selling its distribution facility and corporate office to Vintage Interests LP for $11.5 million. The deal is expected to<br />
close on December 19. (Company Release 11/29/06)<br />
Pizza Inn has completed the sale of its headquarters and distribution facility to Vintage Interests, LP, for $11.5 million.<br />
(Company Release 12/20/06)<br />
Pizza Inn Inc. signed development agreements with Greenville/Spartanburg, SC, and Dallas-Fort Worth franchisees. Viren and<br />
Mina Patel, will open a new Pizza Inn buffet location in Spartanburg, SC, by the fall of 2007. Aaron and Deena Tran, will open<br />
a buffet restaurant in Plano, TX, in the summer of 2007. This location will mark the second Pizza Inn operated by the Tran<br />
family. In addition to these plans, Pizza Inn will transfer its Lindale, TX, franchised unit to a new licensee. (Company Release<br />
5/18/07)<br />
Franchise Activity |<br />
Pizza Inn franchisees, Bridgett Waters, Billy Hale, Kevin and Joyce Whitlock of WMC, Inc., opened a new Pizza Inn buffet in<br />
St. Augustine, FL. The restaurant is located in the Lewis Point Plaza. (Company Release 1/18/07)<br />
A Pizza Inn franchisee opened a new pizza buffet in Boiling Springs, SC, on March 20. In addition to the pizza buffet, the new<br />
restaurant features party facilities, a game room and family-style dining. The restaurant is designed to provide guests with a<br />
wide variety of fresh-made pastas, salads, pizzas and desserts served in a fun and friendly environment. (Company Release<br />
3/20/07)<br />
International Activities |<br />
Pizza Inn Inc. has announced plans to open 20 new units in Kuwait with franchisee Raja Company W.I.I. The multi-unit<br />
development agreement with Kuwait City-based Raja is a continuation of Pizza Inn’s expansion throughout the Middle East<br />
and Asia. (Yahoo! Finance 11/14/07)<br />
Personnel |<br />
Charles Morrison, Interim CEO/President<br />
Charles Morrison, CFO<br />
Joe Brink, V.P. of Purchasing<br />
Ward Olgreen, V.P. of Operations<br />
Danny Meisenheimer, V.P. of Marketing<br />
Ward Olgreen, V.P. Research & Development<br />
Pizza Inn hired Charles R. Morrison as chief financial officer. Previously, Morrison served as president of The Tavern and<br />
Steak and Ale. (Company Release 1/31/07)<br />
Pizza Inn Inc. Chief Executive Officer Tim Taft has resigned, effective immediately. Charlie Morrison has been appointed<br />
Interim Chief Executive Officer. Morrison currently serves as Chief Financial Officer for the company. (Company Release<br />
8/15/07)<br />
News & Other |<br />
Pizza Inn Inc. reported for the first quarter ended September 24 a net loss of $106.1 million from a loss of $49.0 million for the<br />
same period last year. Revenues decreased 7% to $12 million from $12.9 million. Same-store sales fell 1.8%. (Company<br />
Release 11/8/06)<br />
Pizza Inn Inc. reported for the second quarter ended December 24 net earnings rose to $1.5 million from a loss of $6.0 million<br />
for the same period last year. Revenues decreased 3.1% to $12.4 million from $12.8 million. Same-store sales increased<br />
0.6%. (Company Release 2/7/07)<br />
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published.<br />
514
Pizza Inn Inc. reported for the third quarter ended March 25 a net loss of $4.6 million compared to a loss of $4.8 million for the<br />
same period last year. Revenues declined 7.9% to $11.8 million from $12.8 million. Same-store sales fell 7%. (Company<br />
Release 5/8/07)<br />
Pizza Inn Inc. reported a net income of $345,000 or 3 cents per share for its first fiscal quarter ended September 23, up from a<br />
net loss of $1,061,000, or 10 cents per share, over the same fiscal quarter last year. The company also reported a 59%<br />
decrease in administrative expenses and a 100% decrease in interest expenses. (QSRmagazine.com 11/06/2007)<br />
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published.<br />
515
Pizza Pro<br />
Headquarters<br />
2107 N. 2nd Street, Cabot, Arkansas 72023 USA<br />
Tel: (800)777-7554 Fax: (501)605-1204<br />
www.pizzapro.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 130,500 112,000 110,000<br />
Company-owned ($000) 3,000 3,000 3,000<br />
Franchised ($000) 127,500 109,000 107,000<br />
U.S. Number of Units 550 510 510<br />
Company-owned 10 10 10<br />
Franchised 540 500 500<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 245 240 235<br />
Concept Positioning |<br />
Pizza Pro is a limited-service pizza concept that strives in offering its customers high-quality food at moderate prices. Its<br />
primary customers are families with children. Pizza Pro’s commitment to sponsorship of school sports programs and non-profit<br />
organizations is longstanding; franchisees are encouraged to fund-raise for local community service projects. The chain<br />
specializes in pizza, chicken wings, cheesesticks, breadsticks and dessert items. Pizza Pro Inc. franchises the chain in more<br />
than 20 states, primarily in the South and Midwest.<br />
Units average 1,000 sq. ft., but vary in size. Pizza Pro began as a carry-out and delivery concept; however, many of its units<br />
today feature a buffet and operate as sit-down restaurants. Express units operate in convenience stores and other retail<br />
properties such as video rental stores.<br />
Scott Stevens started Pizza Pro in 1985 in Jacksonville, Arkansas. After several successful launches in Arkansas and Texas,<br />
the company began franchising the concept in 1992. With more than 500 units in operation, Pizza Pro is on pace to open as<br />
many as 50 new units per year. However, specific expansion plans and targeted growth markets have not been announced<br />
this year.<br />
<strong>Menu</strong> Positioning |<br />
Pizza Pro’s menu features pizzas, pastas, subs, breakfast items, sides and beverages. Signature items include: the Pro<br />
Special Pizza—with pepperoni, Italian sausage, beef, ham, peppers, olives, onions and extra cheese; Taco Pizza—with taco<br />
meat, Cheddar and mozzarella cheeses, lettuce, tomato and salsa; and the Dessert Pizza— offered in apple, chocolate chip<br />
and cherry. Other pizza favorites include Meat to Please, with five different meats; and Veggie, with mushrooms, green<br />
peppers, onions and olives. Side items include cheesesticks, breadsticks, cinnamon sticks, nachos and 10-pc. chicken wings.<br />
Breakfast sandwiches and pizzas are also offered, as are hot subs including the Steak Hoagie and Chicken Fajita Sub. Pasta<br />
selections, such as spaghetti and lasagna, are also available. <strong>Menu</strong> prices range from $2.99–$18.99. Checks average $16.<br />
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published.<br />
516
Personnel |<br />
Stuart Bennett, V.P. of Operations<br />
Scott Stevens, President<br />
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published.<br />
517
Pizzas of Eight<br />
Headquarters<br />
1915 Cherokee Street, St. Louis, Missouri 63118 USA<br />
Tel: (314)865-1460 Fax: (314)865-2449<br />
www.pizzasofeight.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 102,500 99,500 98,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 102,500 99,500 98,000<br />
U.S. Number of Units 300 295 290<br />
Company-owned - - -<br />
Franchised 300 295 290<br />
International Sales ($000) 1,100 1,000 1,000<br />
International Units 5 4 4<br />
Average Sales/Unit ($000) 330 335 340<br />
Concept Positioning |<br />
Pizzas of Eight is a quick-service turnkey pizza kiosk with outlets nationwide and in five countries. The chain specializes in<br />
pizza with traditional toppings that is mostly sold in individual sizes. Pizzas of Eight appeals to young customers on-the-go,<br />
and has found its success by situating its units in nontraditional sites with heavy foot traffic. The chain is 100% franchised. Its<br />
parent company is Pizza of Eight Inc.<br />
The chain is a self-contained "pizza shop on wheels" that operates in various nontraditional environments. Kiosks feature a<br />
"Treasure Island" theme with a small parrot mascot. Units typically average 50–200 sq. ft. and are designed to operate in small<br />
spaces. The company scouts amusement parks, bowling centers, roller skating rinks, video stores, movie theaters, hotels,<br />
convenience stores, supermarkets and schools to install its franchised units. Its smallest model is a 10-sq.-ft. unit on wheels.<br />
Founder Chuck McMillen worked for years for different pizza chains before developing and launching Pizzas of Eight. The first<br />
outlet opened in 1994. Based in St. Louis, the concept continues to grow via franchising. Pizzas of Eight strives to offer its<br />
operators greater flexibility and maximized revenues by waiving royalties, franchise fees and restrictions. Long-term expansion<br />
plans have not been disclosed by the company.<br />
<strong>Menu</strong> Positioning |<br />
Pizzas of Eight is a quick-service kiosk chain specializing in pizza with traditional toppings for lunch and dinner. Its signature<br />
item is pizza featuring toppings such as pepperoni, sausage, mushrooms, peppers and onions. Its bestseller is the 8” personal<br />
pizza. Its largest-sized pizza is a 14” variety sold as a combo meal for four people. Non-pizza items vary from unit to unit, but<br />
typically include sandwiches, Frito pies, hot dogs, hot pretzels, nachos, freshly baked cookies and soft-serve ice cream. Kids’<br />
options include a pizza buffet for children between the ages of three and nine. <strong>Menu</strong> prices range between $2.95 for an<br />
appetizer and $18.99 for a pizza meal deal that serves four people. Checks average $7.<br />
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published.<br />
518
Personnel |<br />
Chuck McMillen, CEO<br />
Amey Drake, V.P. of Purchasing<br />
Amey Drake, V.P. of Marketing<br />
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published.<br />
519
Pollo Tropical<br />
Headquarters<br />
7300 N. Kendall Dr. Floor 8, Miami, Florida 33156 USA<br />
Tel: (305)670-7696 Fax: (305)670-6403<br />
www.pollotropical.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 197,062 160,000 126,000<br />
Company-owned ($000) 153,062 133,000 124,000<br />
Franchised ($000) 44,000 27,000 2,000<br />
U.S. Number of Units 102 88 64<br />
Company-owned 76 70 63<br />
Franchised 26 18 1<br />
International Sales ($000) 3,000 3,000 27,500<br />
International Units 2 2 20<br />
Average Sales/Unit ($000) 2,135 2,025 2,018<br />
Concept Positioning |<br />
Pollo Tropical is a chain of value-oriented, limited-service restaurants specializing in freshly grilled chicken and sides. Most<br />
units carry Pollo Tropical signage, however some newer units outside its core South Florida market are branded as TropiGrill.<br />
The chain's menu and cooking techniques are rooted in the traditional culinary stylings of the Spanish-speaking Caribbean. Its<br />
signature chicken (prepared without oils or breading) is marinated for 24 hours prior to grilling in a proprietary blend of tropical<br />
fruit juices and spices called Mojo. Sides, including fried bananas, yucca and black beans and rice, are made from scratch onpremise.<br />
Owned by Carrols Corp., the company announced its intent to begin bottling its homemade condiments and sauces<br />
for retail sale.<br />
The décor of Pollo Tropical restaurants incorporates a tropical and Latin theme with an open kitchen, high ceilings, large<br />
windows, light-colored woods, decorative tiles and wrought iron balcony railings. Exteriors are painted in bright tropical colors<br />
and feature an illuminated tower entrance. Largely freestanding, units average approximately 3,200 sq. ft. with seating for 80–<br />
100 guests. Adjacent fenced playgrounds are used where permitted. Restaurants offer sit down, carryout and drive-thru<br />
service. Newer units in Florida feature a Caribbean village look, with yellow, orange and green pastels, paddle fans, beige tiles<br />
and brighter lighting.<br />
The first Pollo Tropical unit opened in 1988 in Miami by company founders Larry and Stuart Harris. The company went public<br />
in 1993 and signed its first franchise agreement in 1995. In 1998, the company was acquired by Carrols Corp.<br />
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published.<br />
520
<strong>Menu</strong> Positioning |<br />
Pollo Tropical's menu features family-style meals, including chicken, pork, sandwiches, salads, sides, Tropical favorites, soup,<br />
desserts and beverages. Its signature item is its grilled chicken, prepared with a proprietary marinade of tropical fruit juices<br />
and spices, served in sandwiches, salads and platters. Other menu favorites include Chicken White Rice & Black Beans—<br />
small casserole bowls with chopped chicken breast, white rice, black beans and special salsa; Ropa Vieja—shredded beef<br />
with “sofrito” (sautéed red and green peppers, garlic and onion blend), with white rice and black beans; and Balsamic Tomato<br />
& Chicken Salad—strips of grilled chicken, with mesculan lettuce greens and tomatoes in a balsamic vinaigrette dressing.<br />
Regular and family meals include black beans and rice served with Caesar salad and Bananas Tropical. One of its newest<br />
items is its Steak Skewer—grilled steak on a skewer priced at $5.19 with rice and beans, or $5.99 with a choice of any two<br />
sides. Sides include black beans and rice, balsamic tomatoes, kernel corn, French fries, macaroni & cheese and red beans.<br />
Desserts include key lime pie, flan and Caribbean Crème Cake. <strong>Menu</strong> prices range between $3.49 and $13.49. Checks<br />
average $8.25.<br />
Promotion Plans |<br />
Pollo Tropical celebrated Hispanic Heritage Month with a promotion at Florida elementary schools. The chain provided<br />
teachers with cards containing Spanish and English descriptions of menu items. After discussing the cards in class, students<br />
were encouraged to redeem them at Pollo Tropical for a complimentary sample of the menu item named on the card.<br />
(QSRmagazine.com 11/07/2007)<br />
Personnel |<br />
Jim Tunnessen, COO/President<br />
Alan Vituli, CEO<br />
Paul Flanders, CFO<br />
Kim Miller, Executive Chef & Purchasing<br />
Jeff Webb, Senior Director of <strong>Menu</strong> Development<br />
News & Other |<br />
Pollo Tropical reported for the fourth quarter same-store sales increased 4.9%. For the year, same-store sales rose 3.2%.<br />
(Company Release 3/1/07)<br />
Pollo Tropical announced that its entire menu in U.S. restaurants is now trans fat-free. Franchisees in Puerto Rico and<br />
Ecuador will roll out trans fat-free menus next year. (The Miami Herald 11/03/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
521
Ponderosa/Bonanza<br />
Headquarters<br />
6500 International Pkwy. Suite 1000, Plano, Texas 75093 USA<br />
Tel: (972)588-5000 Fax: (972)588-5973<br />
www.ponderosasteakhouses.com<br />
Ownership: Private<br />
Segment: Limited Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 406,000 440,000 471,600<br />
Company-owned ($000) 96,000 98,000 97,200<br />
Franchised ($000) 310,000 342,000 374,400<br />
U.S. Number of Units 312 307 364<br />
Company-owned 75 80 82<br />
Franchised 237 227 282<br />
International Sales ($000) 81,000 80,000 82,100<br />
International Units 60 60 63<br />
Average Sales/Unit ($000) 1,300 1,315 1,260<br />
Concept Positioning |<br />
Metromedia Restaurant Group, owner of Bennigan’s and Steak & Ale, operates a midscale steakhouse chain under two<br />
different brands: Ponderosa and Bonanza. Both are family-oriented restaurants known for their flame-grilled steak, chicken<br />
and seafood dinners. Service is buffet style for accessory items, with a waitress bringing hot entrées to the table after they are<br />
cooked.<br />
An average freestanding unit has about 5,000-6,000 sq. ft. with seating for 175-200 patrons. The décor combines brass and<br />
light oak to give the interiors a modern, appealing look with a contemporary country feel.<br />
Ponderosa began as a single steakhouse in Kokomo, IN, in 1965. The first Bonanza restaurant opened in 1963. Asher<br />
Edelman bought Ponderosa in 1987 and sold it to Metromedia in 1988. A year later, Metromedia acquired Bonanza as part of<br />
its $83 million purchase of USA Corps from the founding Wyly brothers. In early 1997, Metromedia announced that it would<br />
consolidate its two steakhouse brands as a single business, with both the Ponderosa and Bonanza brand names continuing to<br />
be used. In 2003, Metromedia entered a strategic partnership with Apex Restaurant Group, which purchased a significant<br />
minority stake and assumed management of day-to-day operations for all restaurant brands.<br />
<strong>Menu</strong> Positioning |<br />
Ponderosa and Bonanza feature a variety of lunch and dinner buffets and signature steaks, including the 6-oz. sirloin, 1-lb. T-<br />
bone and 10-oz. ribeye. Entrées include Chicken Monterey, grilled chicken, fried fish and the Seafood Platter. The all-you-caneat<br />
buffet features unlimited soup and salad, an assortment of entrées and a sundae bar with Baker's Nook desserts. <strong>Menu</strong><br />
prices range from $.99-$42.98 and checks average $12.60.<br />
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published.<br />
522
Expansion Plans |<br />
Metromedia Restaurant Group regrouped its 321 Bennigan’s units and 62 Steak and Ale outlets under the newly created<br />
Metromedia Casual Dining division. The existing Metromedia Family Steakhouse will oversee the Ponderosa and Bonanza<br />
restaurants. (NRN Daily NewsFax 11/21/06)<br />
Promotion Plans |<br />
Ponderosa/Bonanza parent Metromedia Restaurant Group launched an agency review of its $8 million advertising account.<br />
The budget includes creative and media duties for television, radio, print, e-mail, direct mail, interactive and outdoor<br />
advertising. Dallas-based Tracy Locke currently holds the account. (NRN Daily NewsFax 10/18/07)<br />
<strong>Menu</strong> Development |<br />
Ponderosa and Bonanza restaurants have upgraded its steak offerings to USDA choice steaks. The new steaks will be a<br />
permanent feature on menus in all 308 units. The restaurants are offering ½-lb. choice sirloin with an all-you-can-eat buffet for<br />
$9.99, and USDA choice sirloin combo meals, with a choice of fried or grilled shrimp or grilled chicken Monterey with the<br />
buffet, for $11.99. (Company Release 5/2/07)<br />
Ponderosa/Bonanza added entrée platters that give guests the option of either a fixed menu or a buffet. The new dinners<br />
include seafood, steak or chicken with a garden salad, choice of potato, hot vegetable and fresh-baked rolls. Guests also have<br />
the option of ordering an entrée with the buffet. (Nation’s Restaurant News 5/21/07 p12)<br />
Personnel |<br />
Flynn Dekker, S.V.P. of Marketing<br />
David Sollorzano, V.P. of <strong>Menu</strong> Development<br />
Vince Runco, CEO<br />
Jeff Wilson, CFO<br />
John Sailing, COO<br />
Metromedia Restaurant Group has promoted Flynn Dekker to senior vice president of marketing. Dekker will continue to<br />
oversee the company’s Steak and Ale and The Tavern brands, and will take over responsibility for the Ponderosa and<br />
Bonanza steakhouse brands. Dekker succeeds Steve Walsh, who resigned. (Nation’s Restaurant News 11/07/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
523
Popeyes Chicken & Biscuits<br />
Headquarters<br />
5555 Glenridge Connector, NE Suite 300, Atlanta, Georgia 30342 USA<br />
Tel: (404)459-4450 Fax: (404)459-4533<br />
www.popeyes.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,525,700 1,447,420 1,378,668<br />
Company-owned ($000) 65,200 57,607 73,148<br />
Franchised ($000) 1,460,500 1,389,813 1,305,520<br />
U.S. Number of Units 1,559 1,474 1,453<br />
Company-owned 56 32 58<br />
Franchised 1,503 1,442 1,395<br />
International Sales ($000) 150,000 165,533 159,786<br />
International Units 319 354 369<br />
Average Sales/Unit ($000) 985 971 950<br />
Concept Positioning |<br />
Popeye's Chicken & Biscuits is a limited-service chain specializing in Cajun-style fried chicken, biscuits, po’boys, chicken strips<br />
and sides. Popeye’s is the second largest fast-food chicken chain in the U.S., with more than 1,800 locations nationwide. AFC<br />
Enterprises, Inc. is the parent company of Popeye’s and franchises Popeye’s Chicken & Biscuits stores.<br />
Units are primarily freestanding along highways or in suburban shopping centers. All restaurants offer sit-down and carryout<br />
service, and select locations offer drive-thru service. Takeout orders account for 65–70% of unit sales, and 40% of volume is<br />
generated by the drive-thru window. Popeye’s recently updated its décor with its "Heritage" design, which features the<br />
architectural style of the historic French Quarter in New Orleans. This design transforms the drive-thru overhang into a<br />
balcony, and the exterior of the building features gooseneck lighting and New Orleans-themed murals.<br />
Al Copeland, who entered the restaurant business as a franchisee in his brother's donut chain, opened his first chicken<br />
restaurant in 1972 in the New Orleans suburb of Arabi. By 1974, the chain had grown to 15 units, and the company began<br />
franchising in 1976. In 1989, the foodservice company controlled by Al Copeland acquired Church’s Fried Chicken, and the<br />
corporate name was changed to Al Copeland Enterprises, Inc. In December 1990, Al Copeland Enterprises defaulted on a<br />
$391 million debt payment and began a restructuring plan for its two chief creditors, later filing for bankruptcy protection. It<br />
emerged from bankruptcy in 1992 under the corporate name of America's Favorite Chicken Co., now known as AFC<br />
Enterprises. Copeland is a franchisee of 26 Church’s and Popeye’s stores. In late 2004, AFC sold Church's Chicken to<br />
Crescent Capital Investments Inc. for $390 million. Popeye’s is focused on developing a quick-casual hybrid called Cajun<br />
Kitchen, which will specialize in Cajun foods.<br />
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published.<br />
524
<strong>Menu</strong> Positioning |<br />
Popeye's menu offers a selection of chicken items and sides for lunch and dinner. Breakfast is served in 10% of the stores and<br />
includes biscuit sandwiches with chicken, sausage, bacon, eggs and cheese. Side options are hash browns, grits and<br />
cinnamon biscuits. The lunch and dinner menu includes chicken and seafood items. Signature items are the spicy or mild<br />
chicken served by the piece, by the box or in dinner combinations. Sides include Popeye’s red beans 'n rice, Cajun rice, onion<br />
rings, battered fries, mashed potatoes and gravy, coleslaw, jalapeño peppers and corn on the cob. Apple pie and Mardi Gras<br />
Cheesecake are available for dessert. Alcoholic beverages are not offered. Prices range from 65¢-$19.83 and checks average<br />
$5.<br />
Expansion Plans |<br />
Church’s Chicken has purchased 10 Popeyes Chicken and Biscuits units in Rio Grande Valley, TX. This brings the total<br />
number of Church’s Chickens outlets in this area to 39, accounting for more than 50% of the local quick-service chicken<br />
market. (NRN Daily NewsFax 2/14/07)<br />
Promotion Plans |<br />
Popeyes Chicken & Biscuits launched “A Side of Hope” Virtual Food Bank program. “A Side of Hope” allows consumers to<br />
donate funds to America’s Second Harvest through Popeyes’ website so that cans of Red Beans & Rice can be fed to hungry<br />
Americans across the country. Donors can choose the amount they contribute and can give in honor of a designated<br />
individual. The program began July 1 and will run through July 31. (Earthtimes.org 6/29/07)<br />
<strong>Menu</strong> Development |<br />
Popeyes Chicken & Biscuits will eliminate trans-fat from its biscuits and will introduce reduced-trans-fat french fries by yearend.<br />
(NRN Daily NewsFax 11/1/06)<br />
Several chain restaurants are planning to reduce or eliminate trans-fats from their menus. Popeye’s Chicken & Biscuits will<br />
eliminate trans fats from its biscuits and introduce reduced transfat french fries by year’s end. Burger King will test a trans-fatfree<br />
frying oil sometime in the next 90 days. KFC will use a new soybean oil at its units in New York and Chicago, with plans to<br />
roll it out systemwide by spring 2007. IHOP plans to test trans-fat-free oils at its more than 1,200 units in the U.S. and Canada.<br />
Souper Salad restaurants are also planning to be trans fat free by year’s end. McDonald’s units in Australia have switched to a<br />
frying oil that is nearly free of trans fatty acids. The company did not say whether or not it would use the blend of canola and<br />
high-oleic sunflower oil at its U.S. locations. (Los Angeles Times 11/07/06; Company Release 11/07/06)<br />
Popeye’s Chicken & Biscuits added Full Flavor Green Beans to its menu. The item features hints of smoky bacon flavor.<br />
(Company Website)<br />
Popeye’s Chicken & Biscuits is offering six Spicy Cajun Wing Pieces for $3.49 for a limited time. Guests can customize their<br />
meal with a choice of three sauces: Sweet Heat, Barbecue and Blazin’ Buffalo. (Company Website)<br />
Popeye’s Chicken & Biscuits now offers zero-gram-trans-fat biscuits in its domestic units. Popeye’s has posted the trans fat<br />
content information on the nutrition page of its website detailing the brand’s core menu items. The chain began the conversion<br />
in late 2006. (Company Release 5/29/07)<br />
Popeye’s added Buffalo Shrimp to its menu, offering crispy, butterfly shrimp coated with Buffalo seasoning. (Company<br />
Website)<br />
Popeye’s Chicken & Biscuits is offering a fully cooked Popeye’s Cajun Turkey beginning November 1. The turkey weighs<br />
about 12–14 pounds and feed eight to 10 people. Each turkey is infused with Popeye’s special Cajun spice blend, then crusted<br />
with another spicy Cajun seasoning to seal in the flavor.(Area Developer 10/5/07)<br />
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published.<br />
525
Personnel |<br />
Cheryl A. Bachelder, CEO<br />
Mel Hope, CFO<br />
Derek Waldrep, V.P. of Purchasing<br />
Bob Melberth, V.P. of Operations<br />
Sue Harwell, V.P. of Marketing<br />
Kirk Waisner, V.P. Research & Development<br />
News & Other |<br />
Trans fats will be reduced or eliminated from some menu items at several chain restaurants. Popeye’s Chicken & Biscuits is<br />
eliminating trans fats from its biscuits and will introduce reducedtrans-fat french fries by year’s end. Burger King will test a<br />
trans-fat-free frying oil within the next 90 days. IHOP is also testing a trans-fat-free oil at its restaurants in the U.S. and<br />
Canada. KFC is using a trans-fat-free soybean oil at its units in New York and Chicago and will roll it out systemwide by spring<br />
of 2007. Souper Salad plans to be trans-fat-free by early December. McDonald’s units in Australia have switched to a frying oil<br />
that is nearly free of trans fatty acids. McDonald’s European units will cut the level of trans fats in frying oil to 2% by 2008.<br />
McDonald’s will use a blend of canola oil and high oleic sunflower oil at these locations. The company did not say whether or<br />
not it would roll out the oil to its U.S. locations. (Los Angeles Times 11/07/06; Reuters 11/07/06; NRN Daily NRN Daily<br />
NewsFax 11/01/06, 11/08/06, 11/10/06)<br />
Popeyes Chicken & Biscuits has opened a prototype called Popeyes Louisiana Kitchen. The new restaurant offers menu items<br />
such as Voodoo BBQ Ribs, Bayou Blackened Catfish and New Orleans-style bread pudding. The unit is also allowing<br />
customers to pay for their meal at self-service kiosks or customers can place their orders by phone and pick them up. The<br />
restaurant opened on December 12 in Norcross, GA. (NRN Daily NewsFax 12/13/06)<br />
Popeye’s Louisiana Kitchen is a new quick-casual hybrid from AFC Enterprises, parent company of Popeye’s Chicken &<br />
Biscuits. Louisiana Kitchen outlets offer a menu of authentic Cajun and Creole recipes and a wider variety of items than the<br />
original Popeye’s chain. While Popeye’s fried chicken remains a signature offering, Louisiana Kitchen also lists New Orleansstyle<br />
shrimp, ribs, Cajun burgers, blackened catfish and red bean & rice soup served in a bread bowl. Its exterior recalls<br />
classic Louisiana architecture with stucco, brick, awnings and balconies. Its interior features colorful murals and jazz music in<br />
the background. Indoor and patio seating are available. The first Louisiana Kitchen unit is located in Norcross, GA, and a<br />
second location in Fayetteville, GA, is due to launch in March 2007. (Company Website)<br />
Popeyes Chicken & Biscuits’ owner AFC Enterprises has filed a $20-million lawsuit against Church’s Chicken and a former<br />
Popeyes franchisee for the recent purchase of 10 Popeyes outlets in Rio Grande Valley, TX. The lawsuit claims that former<br />
AFC franchisee CVI Co. Ltd. broke its contract with the company when it sold the restaurants to Church’s late last year.<br />
Church’s says that the lawsuit is without merit and that it was approached by an unidentified party for the sale. (The Atlanta<br />
Journal-Constitution 3/01/07–3/05/07; NRN Daily NewsFax 3/01/07; Company Release 2/28/07)<br />
Popeye’s Chicken & Biscuits parent AFC Enterprises said that its full-year, per-share profit would reach only the lower end of<br />
its previously announced expectations of 81¢–85¢. For the second quarter ended July 15, the company reported net earnings<br />
increased 29.4%. Revenue rose 11.3% to $38.3 million. Systemwide domestic same-store sales at Popeye’s dropped 2.1%.<br />
(Nation’s Restaurant News 9/3/07)<br />
Popeyes Chicken & Biscuits parent AFC Enterprises has reported third-quarter results and lowered its annual outlook. The<br />
company now expects per-share earnings for the year to total between 78 cents and 80 cents, down from the second-quarter<br />
projection of 81 cents to 85 cents per share. Third-quarter same-store sales were down 2.5% from a year ago, which the<br />
company blames on lower-than-expected results from limited-time offerings and weaker lunch and dinner daypart traffic.<br />
(NRN.com 11/15/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
526
Portillo's Hot Dogs<br />
Headquarters<br />
2001 Spring Rd. Suite 500, Oak Brook, Illinois 60523 USA<br />
Tel: (630)954-3773 Fax: (630)954-5851<br />
www.portillos.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 100,000 96,000 84,000<br />
Company-owned ($000) 100,000 96,000 84,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 31 31<br />
Company-owned 32 31 31<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,200 3,100 2,900<br />
Concept Positioning |<br />
Portillo’s Hot Dogs is a limited-service chain of casual-dining restaurants that reflect various themes from the 20th century and<br />
provide customers with the “best food” and “best service.” Specializing in hot dogs, chili dogs, sausages and burgers, the<br />
chain appeals to young and old alike. Currently a privately held company, Portillo’s operates over 30 restaurants, all of which<br />
are company owned. Restaurants are primarily located in Illinois with two recently opened units in Merrillville, IN, and Buena<br />
Park, CA.<br />
Units are freestanding and located mainly in suburban areas. Each restaurant features different items from the Portillo family’s<br />
expansive historic Americana collection. Restaurants are furnished with dark wood booths, tables and chairs, ceiling fans, café<br />
curtains on brass curtain rods and wallpaper. Every unit carries a theme and decor reminiscent of a particular period such as<br />
1930s Prohibition, a mining town and Old Chicago. Restaurants are open seven days a week for lunch and dinner as well as<br />
offer takeout and drive-thru in all but one unit. Indoor and outdoor seating accommodate 101–384 diners.<br />
Dick Portillo opened the first restaurant in 1963 in Villa Park, IL, and named it “The Dog House.” In 1967, it was remodeled and<br />
renamed “Portillo’s.” Portillo continued to open more Portillo’s Hog Dog restaurants and in 1987 introduced a new restaurant<br />
concept called Barney’s. In 1993, Portillo’s third concept, Barnelli’s Pasta Bowl, was opened. Inspired by the tropical setting of<br />
Key West, FL, Portillo opened up a restaurant called Key Wester Fish & Pasta House and Hemingway’s Bar in 1996. He then<br />
opened Luigi’s House restaurant in 2000. Portillo's debuted its first California location with a new store in Buena Park, CA, in<br />
2005. The company plans to eventually open 40 outlets in California.<br />
<strong>Menu</strong> Positioning |<br />
Portillo’s is currently open for lunch, dinner and snacks seven days a week. The chain offers an extensive menu ranging from<br />
traditional favorites to entrée salads. Signature items include Jumbo Hot Dogs, Big Beef and Strawberry Spinach Salad with<br />
Crispy Chicken. Dessert offerings are chocolate cake, strawberry shortcake, Malibu Rum Cake and cheesecake The beverage<br />
menu offers soft drinks, shakes, malts, coffee and milk. Alcoholic beverages are not included. <strong>Menu</strong> prices range from $3.09–<br />
$6.59. Checks average $8.32.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
527
Expansion Plans |<br />
Portillo Restaurant Group continues to expand outside of Illinois, recently entering the Indiana market. The company is looking<br />
to open at least two more co-branded outlets of its Portillo’s Hot Dogs and Barnelli’s Pasta Bowl brands in Indiana as well as<br />
two more Illinois branches and two in California. Stores are expected to open in Schererville, IN, and Willowbrook, IL, in 2007.<br />
The company currently has nine such outlets, including its most recently opened unit in Merrillville, IN. (Nation’s Restaurant<br />
News Online 1/01/07)<br />
Personnel |<br />
Phil Margolis, Executive Chef<br />
Richard Portillo, CEO<br />
Karen Peterson, CFO<br />
Larry Hjorth, V.P. of Purchasing<br />
Sherri Abruscato, COO<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
528
Potbelly Sandwich Works<br />
Headquarters<br />
222 Merchandise Mart Plaza Suite 2300, Chicago, Illinois 60654 USA<br />
Tel: (312)951-0600 Fax: (312)951-0300<br />
www.potbelly.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 145,000 95,778 64,000<br />
Company-owned ($000) 145,000 95,778 64,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 140 102 68<br />
Company-owned 140 102 68<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,200 1,198 1,172<br />
Concept Positioning |<br />
Potbelly Sandwich Works is chain of privately held sandwich shops. Potbelly prides itself on having a fun-filled atmosphere in<br />
this unique neighborhood sandwich joint. Its small menu focuses on submarine sandwiches, malts and smoothies. Potbelly<br />
currently has locations on the East Coast and Midwest.<br />
Units can be freestanding or located in airports and malls depending on the location. The comfortable, casual atmosphere is<br />
reminiscent of an old-fashioned sandwich shop and is complemented by vintage furniture, antique memorabilia, vintage street<br />
signs and rustic-looking book cases filled with books. Live music is also featured. Restaurants are limited-service operations<br />
open for lunch and dinner providing dine in, take-out and delivery services. Breakfast is also available Monday through Friday<br />
at some locations. Ranging from 1,500–3,000 sq. ft., units average 50–60 seats for patrons.<br />
Potbelly Sandwich Works was founded in 1977 in Chicago, IL, when a young couple started offering sandwiches and<br />
homemade cookies in their antique store. In 1996, the shop was purchased by Bryant Keil who has since expanded the<br />
concept. In mid-2006, Potbelly received $58 million in private equity financing, which will help the chain continue its nationwide<br />
expansion. The company plans to double its total number of units by 2008.<br />
<strong>Menu</strong> Positioning |<br />
Potbelly is open for lunch, dinner, and breakfast Monday through Friday. Specializing in made-to-order sandwiches, the menu<br />
features fresh, quality ingredients served on Italian sub rolls. Guests have the option of ordering their sandwiches cold, or<br />
having it toasted in an oven. Each order includes lettuce, tomato, onion, oil, pickles and Italian seasoning with may, mustard<br />
and peppers optional. Signature items include The Wreck—ham, turkey, roast beef and salami with provolone cheese;<br />
Turkey—turkey and melted Swiss cheese; and the Italian, Ham & Cheese, Veggie and Meatball subs. Breakfast sandwiches<br />
are also menued, including made-to-order varieties of traditional options like Ham & Cheese; Bacon, Egg & Cheese; and<br />
Sausage, Egg & Cheese on choice of wheat sub roll, Italian sub roll or bagel. Starting in February 2007, Chicago locations<br />
began offering salads. Varieties are Chicken Salad Salad, Italian Salad, Wreck Salad and Veggie Salad. Rounding out the<br />
menu are cookies and ice cream sandwiches as well as thick, old-fashioned malts and milkshakes available in chocolate,<br />
vanilla, strawberry and coffee flavors. <strong>Menu</strong> prices range from $0.99–$4.29. Checks average $5.83.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
529
<strong>Menu</strong> Development |<br />
Potbelly Sandwich Works is offering salads at its locations in Chicago. Varieties are Chicken Salad Salad, Italian Salad, Wreck<br />
Salad and Veggie Salad. The salads feature romaine lettuce, freshly sliced meats and cheeses and a variety of toppings,<br />
including marinated artichoke hearts, roasted red peppers, blue cheese, dried cranberries and homemade croutons.<br />
(Company Website)<br />
Potbelly Sandwich Works plans to test Starbucks coffee at breakfast. Fifteen stores will test Starbucks coffee in conjunction<br />
with Potbelly’s $2.99 breakfast sandwiches. The test includes eight stores in Chicago, four in Washington D.C., two in<br />
Minneapolis and one in Philadelphia. (Crain’s Chicago Business 6/11/07 p2)<br />
Personnel |<br />
Bryant Keil, CEO<br />
William Moreton, CFO<br />
John Mordock, V.P. of Operations<br />
Scott Zuckerman, V.P. of Marketing<br />
Potbelly Sandwich Works hired James Hirshorn as chief financial officer. Previously, Hirshorn served as senior executive vice<br />
president of finance, research and development and operations at Sealy Inc. (NRN Daily NewsFax 12/20/06)<br />
News & Other |<br />
Potbelly Sandwich Works plans to start testing drive-thru service at new units in two Chicago suburbs. Potbelly’s new stores in<br />
Glen Ellyn and Waukegan, IL, will be equipped with drive-thru windows in order to accommodate suburban mothers on the go.<br />
If successful, Potbelly may soon begin expanding drive-thru models in suburban markets. (Chicago Sun-Times 6/26/07)<br />
Potbelly Sandwich Works and La Bamba Mexican Restaurants are being sued by Ohio Attorney General Marc Dann for<br />
allegedly violating Ohio’s Consumer Sales Practices Act with a credit-card promotion. The lawsuit claims that fliers posted on<br />
the Ohio State University campus offered a free sandwich and drink at Potbelly or a free burrito at La Bamba, but did not<br />
mention that students would receive the offers only if they applied for a Citibank-issued credit card or listened to a threeminute<br />
promotion. Also named in the lawsuit as defendants were Citibank and Campus Dimensions, a Pennsylvania-based<br />
promotions company. (Nation’s Restaurant News 10/9/07)<br />
Potbelly Sandwich Works has settled a lawsuit filed against it under the Americans with Disabilities Act by agreeing to make all<br />
its stores accessible to wheelchairs. The settlement comes after the Equal Rights Center and customer Rosemary Ciotti filed a<br />
lawsuit against Potbelly claiming wheelchair users could not access ordering stations and tables. As part of the agreement,<br />
Potbelly will make all ordering stations wheelchair-accessible, make at least 5% of its seating wheelchair-accessible and<br />
survey its restaurants for any other barriers to people with disabilities. In addition, Potbelly will make a donation of an<br />
undisclosed amount to the Equal Rights Center. No time frame for the changes has been disclosed. (Chicagotribune.com<br />
11/21/07, NRN Daily NewsFax 11/27/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
530
Qdoba Mexican Grill<br />
Headquarters<br />
4865 Ward Rd. Suite 500, Wheat Ridge, Colorado 80033 USA<br />
Tel: (720)898-2300 Fax: (720)898-2396<br />
www.qdoba.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 266,000 186,300 133,000<br />
Company-owned ($000) 60,000 46,800 38,000<br />
Franchised ($000) 206,000 139,500 95,000<br />
U.S. Number of Units 318 237 177<br />
Company-owned 67 57 47<br />
Franchised 251 180 130<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 955 900 850<br />
Concept Positioning |<br />
Qdoba Mexican Grill is a national chain of limited-service restaurants offering fajitas, tacos, specialty salsas and large,<br />
signature burritos in a fast-casual format. Open daily, sales from its lunch and dinner dayparts are almost evenly divided with<br />
lunch accounting for 52% of sales and dinner accounting for 48%. Owned by public company Jack in the Box Inc., Qdoba's<br />
hundreds of locations are franchised nationwide.<br />
The average Qdoba unit measures approximately 1,800–2,000 sq. ft. and seats 30–50 patrons. Interior décor features colorful,<br />
modern touches, representing a shift from its previous design package. New elements include stainless steel-topped tables<br />
and seating made from blond wood.<br />
Anthony Miller and Robert Hauser opened the first Qdoba restaurant in Denver in 1995 under the name "Zuma-A Fresh<br />
Mexican Grill.” Its first unit generated $1.5 million in first year sales, while only costing $200,000 to build. In 1997, the company<br />
changed its name to Z-TECA Restaurants, L.P. and began opening units under the name Z-TECA Fresh Mexican Grill Z-<br />
TECA Restaurant Corporation was formed that same year to continue the operations of the partnership. In late 1999, the<br />
company again changed its name to Qdoba Restaurant Corp. in order to have a more distinct name as it entered into new<br />
markets; therefore, the concept name was changed to Qdoba Mexican Grill. In 2003, San Diego-based Jack in the Box Inc.<br />
acquired Qdoba for $45 million. Qdoba estimates the launch of up to 90 new locations through 2007. The company is actively<br />
seeking multi-unit development partners to fuel its growth.<br />
<strong>Menu</strong> Positioning |<br />
Qdoba Mexican Grill offers one lunch and dinner menu featuring jumbo-size burritos that weigh in at a pound and a quarter,<br />
along with fajitas, tacos, salads and teca bowls, made with a base of cilantro rice and filled with a variety of ingredients. Eleven<br />
burritos are offered ranging in price from $4.25 for the vegetarian, a basic rice and bean burrito with 100% vegetarian<br />
ingredients, to $5.25 for the TECA fresh, a burrito filled with a choice of steak or chicken, topped with guacamole, tomato<br />
salsa, cheese, lettuce and choice of extra salsa. No beans or rice are added to this burrito. Signature items include Fajita<br />
Ranchera Burrito, Chicken Mole Burrito and Steak Quesadillas. No alcohol is served. Healthy options include Grilled Veggie<br />
Naked Taco Salad, Naked Burrito and Poblano Pesto Naked Burrito. Kids’ menu offerings are Taco, Cheese, or Chicken<br />
Quesadilla. Meal prices range between $1.49 and $6.19. Checks average $6.50.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
531
Expansion Plans |<br />
Qdoba Mexican Grill will open its second Columbus, OH, restaurant on May 17. The unit will be located on Fifth Avenue.<br />
(Bizjournals.com 5/14/07)<br />
Qdoba Mexican Grill will expand in the Chicago area. The chain plans to build three to four locations a year in the area. The<br />
company’s seventh Chicago location opened on July 23 in downtown Chicago, and another unit is expected to open next<br />
month in suburban Wheaton. (Chicagobusiness.com 7/25/07)<br />
Qdoba Mexican Grill opened its 400th location on November 12. The new Nampa, ID, unit was opened by franchisee Michael<br />
Bladow who has an agreement with Qdoba to operate 12 units in two states by 2010. The Nampa store also marks the 80th<br />
Qdoba opened over the last 12 months. (QSRmagazine.com 11/12/07)<br />
Jack in the Box Inc. is planning to expand franchise operations in 2008. The company intends to sell 100 to 120 Jack in the<br />
Box restaurants to franchisees in fiscal 2008, for an expected gain of $45 million to $48 million. The chain also expects to open<br />
35 to 45 new Jack in the Box units, including 13 to 17 franchised locations. For its Qdoba brand, the company plans to open<br />
75 to 90 stores, 60 to 70 of which will be franchised. (Yahoo! Finance 11/16/07)<br />
Promotion Plans |<br />
Qdoba Mexican Grill and GroundFloor Media Inc., a Denver-based public relations firm, partnered to develop a public relations<br />
campaign that includes programs to generate visibility for products and store openings through consumer publications and<br />
national trade. (Company Release 4/9/07)<br />
<strong>Menu</strong> Development |<br />
Qdoba Mexican Grill introduced its new Mango Chicken Salad to more than 360 units in 40 states. The salad features<br />
shredded romaine lettuce, the chain’s adobo chicken, lime vinaigrette, cheese, light or regular sour cream and mango salsa in<br />
a tortilla bowl. The item is priced at $5.99. (NRN Daily NewsFax 6/13/07)<br />
Qdoba Mexican Grill is now trans-fat-free. The chain’s full menu meets the guidelines for zero-trans-fat labeling in both New<br />
York City and throughout the state of Colorado. Qdoba will implement the new trans-fat-free oil nationwide by the end of 2007.<br />
(Company Release 7/26/07)<br />
Qdoba rolled out an Ancho Chile Barbecue Burrito using its new slow-simmered shredded pork and ancho chile barbecue<br />
sauce. This is Qdoba’s fifth signature burrito. The shredded pork can be added to other menu items, such as tacos, burritos,<br />
salads, quesadillas and nachos. (Nation’s Restaurant News Online 9/5/07)<br />
Franchise Activity |<br />
Qdoba Mexican Grill will not be opened in Worcester, MA, by a Panera Bread franchisee. The unit was slated to open in the<br />
White City Shopping Center which has a clause in the lease saying that the tenancy of any bakery or restaurant that generated<br />
more than 10% of its profits from sandwiches is prohibited. A state Superior Court judge claimed that the term “sandwich” is<br />
not commonly understood to include tacos, burritos or quesadillas. (NRN Daily NewsFax 11/6/06)<br />
Qdoba Mexican Grill plans to open five to seven restaurants in Memphis with GO Foods LLC. The units are expected to open<br />
in the next three years, with the first opening on May 21. (Bizjournals.com 3/23/07)<br />
Personnel |<br />
Linda Lang, CEO<br />
Jerry Rebel, CFO<br />
Alan Tonks, V.P. of Purchasing<br />
Lenny Comma, V.P. of Operations<br />
Ted Stoner, V.P. Research & Development<br />
Terri Graham, CMO/ S.V.P.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
532
News & Other |<br />
A burrito is not considered a sandwich in Massachusetts. A state Superior Court judge has rejected a Panera Bread<br />
franchisee’s attempt to stop a Qdoba Mexican Grill from opening in White City Shopping Center in Shrewsbury, MA. The<br />
franchisee claimed that in its lease at the shopping center did not allow for the tenancy of any bakery or restaurant that<br />
generated 10% of its sales from sandwiches. The judge rejected the claim, saying that the lease did not include an “explicit<br />
and broad definition of sandwiches,” and that burritos, tacos and quesadillas were not understood to be sandwiches. (NRN<br />
Daily NewsFax 11/06/06)<br />
Qdoba Mexican Grill has embarked on an ambitious expansion plan that will add at least 80 more restaurants in 2007. Qdoba<br />
is being helped financially by Jack in the Box, which acquired Qdoba in 2003. Qdoba is focusing on an aggressive franchising<br />
strategy to fuel growth. The company currently has 354 units in 42 states. (Denverpost.com 4/16/07)<br />
Cannoli Joe’s is a new Italian buffet concept from Qdoba co-founder Bob Hauser and the owners of the County Line barbecue<br />
chain. The restaurant opened in Austin, TX, and features 12 themed dining rooms in a 12,000-sq.ft. space. It also features a<br />
3,000-sq.ft. scatter buffet with 10 cooking stations. The executives want to open the concept elsewhere in Texas. (NRN Daily<br />
NewsFax 4/17/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
533
Quiznos Subs<br />
Headquarters<br />
1475 Lawrence Suite 400, Denver, Colorado 80202 USA<br />
Tel: (720)359-3300 Fax: (720)359-3399<br />
www.quiznos.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,635,000 1,380,000 1,121,500<br />
Company-owned ($000) 2,600 2,500 1,500<br />
Franchised ($000) 1,632,400 1,377,500 1,120,000<br />
U.S. Number of Units 4,500 3,294 3,055<br />
Company-owned 5 5 5<br />
Franchised 4,495 3,289 3,050<br />
International Sales ($000) 115,000 80,000 110,000<br />
International Units 500 198 339<br />
Average Sales/Unit ($000) 425 435 430<br />
Concept Positioning |<br />
Quiznos Classic Subs positions itself as a limited-service sandwich chain offering high-quality ingredients and healthy menu<br />
items for lunch and dinner. Quiznos’ menu features a selection of soups, salads, bread bowls and signature subs. Quiznos<br />
currently operates over 3,000 stores worldwide.<br />
Units are primarily freestanding and average 1,200-1,600 sq. ft. with seating for 30–40 guests. Some units are mall food-court<br />
locations. Smaller Quiznos Express units are found in nontraditional locations, such as convenience stores and sports<br />
facilities. These average 500 sq. ft. Restaurant décor has an Italian deli ambience with a red-and-green color scheme,<br />
reproductions of old Italian food labels and hand-painted Italian-style posters. An open kitchen completes the look. Takeout<br />
accounts for approximately 50% of sales, and catering and delivery are also available in most markets.<br />
Boyd Bartlett and Todd Disner founded Quiznos in Denver in 1981, and in 1991 the chain was bought by franchisee Richard<br />
Schaden and his father. In mid-2001 the company accepted a management-led buyout, and the deal took the company<br />
private. In March 2006, Quiznos entered an agreement with JPMorgan Chase & Co. for JPMorgan Partners to assume part<br />
ownership of the chain.<br />
<strong>Menu</strong> Positioning |<br />
Quiznos offers soups, salads and freshly prepared sandwiches for lunch and dinner. Appetizers are a broccoli cheese soup,<br />
chicken & corn chowder, chili, side Caesar or side garden salad. Signature sandwiches include the Black Angus Steak, with<br />
mozzarella, Cheddar, mushrooms, sautéed onions, honey Bourbon mustard and a zesty grille sauce; Classic Club with Bacon,<br />
including turkey, ham, Cheddar, lettuce, tomato and mayonnaise; and Classic Italian, with salami, pepperoni, capicola, ham,<br />
mozzarella, lettuce, tomato, red onion, black olives and a red wine vinaigrette dressing. A healthy menu features a Honey<br />
Bourbon Chicken Sandwich, Sierra Turkey on Italian Ciabatta Bread, and Turkey Light. For an additional $2, all sandwiches<br />
can become a Combo Meal with a fountain drink and a choice of chips, cookies or side salad. In late 2007, Quiznos introduced<br />
flatbread Sammies, miniature sandwiches in Sonoma Turkey, Bistro Steak Melt, Italiano and Alpine Chicken flavors. The<br />
dessert menu features a bundt cake, double chocolate chunk brownie and a variety of cookies. Kids' menu items include the<br />
Toasty Turkey 'N Cheez, Toasty Cheez and Toasty Ham 'N Cheez. Alcoholic beverages are not served. Prices range from $2–<br />
$8.09 and checks average $7.77.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
534
Expansion Plans |<br />
Quiznos opens a new unit in Wilkes-Barre, PA, on June 23. The store is located in the a new downtown Wilkes-Barre complex<br />
that also contains a 14-screen movie theater. It is the first retail outlet in the complex. (Citizensvoice.com 6/18/07)<br />
Promotion Plans |<br />
Quiznos and WPP’s Oglivy & Mather announced that it split in February. Interpublic Group’s Initiative has taken over the<br />
media responsibilities for the $80 million business. (Adweek 6/4/07 p24)<br />
Quiznos Subs is offering a Back-to-School Prize Pack. The Prize Pack includes a $500 shopping spree, iPod Shuffles and<br />
Quiznos gift cards. Participants can increase their chances of winning if they refer a friend. Prizes are awarded daily. The<br />
promotion runs until the end of August. (Company Website 8/20/07)<br />
<strong>Menu</strong> Development |<br />
Quizno’s introduced two new sandwiches, Mesquite Chicken with Bacon and Ultimate Italian. The Ultimate Italian features<br />
double portions of salami, pepperoni, capicola, ham and mozzarella, topped with sliced tomato, basil pesto, red onion, spring<br />
mix and balsamic vinaigrette dressing. (Company Promo; Company Website)<br />
Quiznos introduced Prime Rib on Garlic Bread. The sandwich features thinly sliced, tender prime rib, mozzarella cheese and<br />
mayo on toasted garlic bread. (Company Promo)<br />
Quiznos Subs added the Peppercorn Parmesan Turkey with Bacon sandwich to its lineup for a limited time. The item is<br />
prepared with roasted turkey breast, bacon, melted mozzarella, romaine lettuce, sliced tomato and Quiznos’ peppercorn-<br />
Parmesan dressing. It is priced from $3.49–$7.99 depending on the size. (NRN Daily NewsFax 4/17/07; Company Release<br />
4/10/07)<br />
Quiznos introduced its Baja Chicken sub for a limited time. The item features sweet and smoky Baja sauce, fresh-cut cilantro<br />
and chipotle mayo. The sandwich is being promoted through the chain’s second “Wrong Way” advertisement. The<br />
advertisement focuses on the chain’s bold flavors and premium food. The sandwich will remain on the menu until August 12.<br />
(Foodservicecentral.com 6/7/07)<br />
Quiznos rolled out a new line of snack flatbread sandwiches called “Sammies” to attract more customers before and after the<br />
lunchtime rush. The sandwiches are served on 4 ½-inch circles of warm flatbread, contain approximately 300 calories and sell<br />
for $2 each. Sammies are available in Italiano, Sonoma Turkey, Alpine Chicken and Bistro Steak Melt versions. (Rocky<br />
Mountain News Online 11/10/07)<br />
Franchise Activity |<br />
Many Quiznos Subs Arizona franchisees are moving to Marco’s Pizza franchise agreements. Marco’s Pizza has attracted five<br />
franchisees, including David Jeffers and Jim Morse, both formerly Quiznos owners. Jim Morse is selling his restaurants and<br />
will open 30 Marco’s Pizza units in the Mesa area. (Regulus2.azstarnet.com 8/2/07)<br />
Personnel |<br />
Greg Brenneman, CEO/President<br />
Brandon Tunrner, CFO<br />
Steve Provost, CMO<br />
Zach Calkins, Director of Culinary Development<br />
Quiznos hired Greg Brenneman as president and chief executive officer, effective immediately. Brenneman owns private<br />
equity firm TurnWorks Inc., which has taken an equity position in Quiznos. (Bizjournals.com 1/8/06)<br />
Quiznos Subs hired Richard J. Emmett as Executive Vice President and Chief Legal Officer, effective May 1. Previously,<br />
Emmett served as a Papa John’s executive and franchisee. Emmett replaces Pat Meyers, who remains a principal and<br />
director for the company. Quiznos also hired Andrew G. Skehan as President for Europe-Middle East-Africa operations,<br />
effective April 23. Previously, Skehan served as Chief Operating Officer and President for Churchill Downs Inc. (NRN Daily<br />
NewsFax 4/6/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
535
News & Other |<br />
Quiznos Subs is being sued by its franchisees, who are alleging the company has defrauded them in a scheme to build the<br />
brand. The franchisees claim that Quiznos forces them to buy supplies and food at inflated prices and selling the products at<br />
low retail prices. (NRN Daily NewsFax 11/22/06)<br />
Quiznos Subs is the target of a class-action lawsuit filed by a group of 28 Wisconsin franchisees. The lawsuit alleges that the<br />
chain has systematically defrauded its franchisees in a scheme to build the brand at the expense of operators in the field. The<br />
group of franchisees also claims that Quiznos forces franchisees to purchase food and supplies from Quiznos or its affiliates at<br />
inflated prices while at the same time setting artificially low retail prices for the chain’s products. Quiznos had a similar lawsuit<br />
filed against it by another group of franchisees in New Jersey earlier this year. The Toasted Subs Franchisee Association<br />
plans to file more lawsuits against Quiznos nationwide. (NRN Daily NewsFax 11/22/06)<br />
Quiznos Subs responded to a law firm representing franchisees in class-action lawsuits against the franchisor in Illinois,<br />
Wisconsin and Michigan. The company accused the plaintiffs’ counsel of grandstanding with the press, making misleading<br />
comments and having little knowledge of the Quiznos business. The suit seeks unspecified damages and relief from what the<br />
plaintiffs allege are fraudulent Quiznos practices. (NRN Daily NewsFax 4/23/07)<br />
University of North Carolina-Chapel Hill is converting its End Zone sports café into a Starbucks by late September. The<br />
university also intends to open either a Subway or a Quiznos by fall 2007. (FoodManagement.com 5/07)<br />
Quiznos’ former director of operations, Michael Grodi, is being sued by Quiznos’ for allegedly stealing trade secrets in order to<br />
benefit his new employer, Florida-based emerging sandwich chain Earl of Sandwich. Quiznos’ claims that when Grodi exited<br />
the company, he took confidential company information with him, including proprietary documents, manuals and agreements,<br />
to help Earl of Sandwich expand its franchise operations. Grodi and Earl of Sandwich deny any wrongdoing in the case, which<br />
is now in federal court. (DenverBusinessJournal.com 6/22/07)<br />
Quiznos Chief Executive Officer Greg Brenneman aims to reduce food costs, open communication with franchisees and test<br />
new products to boost profits. Brenneman is working to turn the chain around after several franchisees have complained about<br />
low profits, the franchise recruiting process and company operating requirements. (Forbes.com 7/11/07)<br />
HMSHost, a world leader in travel dining and shopping, opened four popular restaurants at the Nashville International Airport<br />
with Transfare Inc. The two companies opened Baja Burrito, Burger King, Famous Famiglia Pizzeria and Quiznos Subs in the<br />
C Concourse food court. The four restaurants are part of HMSHost’s concession development program, an 11-year contract to<br />
develop new food and beverage venues. (Sys-con.com 8/14/07)<br />
Quiznos Subs is being sued by 5,000 of its franchisees across the U.S. who allege that the company has systematically<br />
defrauded them in a plan to build the brand at the expense of its operators. The lawsuit claims that the company forced<br />
franchisees to buy food, equipment and services from Quiznos or its affiliates at inflated prices while setting a low retail price<br />
for the product. The franchisees also claim that the company unlawfully omitted or misrepresented key facts about the<br />
company’s business operations. (Company Release 8/15/07)<br />
Nashville International Airport has opened four restaurants in phase one of a three-part concession development program.<br />
HMSHost Corp. has an 11-year contract to develop new food and beverage venues for the airport. Baja Burrito, Famous<br />
Famiglia Pizzeria, Quiznos Subs and Burger King are the first restaurants to open in the C Concourse Food Court. They will<br />
be followed by two Starbucks Coffee units, Noshville Delicatessen, Jack Daniel’s Tennessee Tavern, Neely’s Barbeque,<br />
Gibson’s Guitar Café and Provence Breads & Café. HMSHost operates in more than 100 airports worldwide. (PR Newswire<br />
Online 8/14/07)<br />
Quiznos Subs filed a trade-secrets lawsuit against its former Senior Vice President, Michael Grodi, accusing Grodi of taking its<br />
secrets and unidentified employees to his new job as President and Chief Executive at Earl of Sandwich. Grodi and Earl of<br />
Sandwich denied the allegations. (Nation’s Restaurant News 9/3/07)<br />
Quiznos Subs is tops in the quick-service restaurant industry in wait time performance, according to the Mystery Shopping<br />
Providers Association’s 2007 Wait Time Study. With an average wait time of 1 minute, 15 seconds, Quizno’s edged out<br />
second-place finisher Starbucks, which came in at 2 minutes, 8 seconds. The study was based on more than 10,000 mystery<br />
shopper responses from 25 cities spanning a three-month period. (qsrmagazine.com 10/31/07)<br />
Quiznos Subs won dismissal of a lawsuit in which 12 franchisees had accused the franchisor of deceptive and fraudulent<br />
practices. A federal judge in Milwaukee, WI, said the plaintiffs failed to prove that Quiznos forced them to buy supplies at<br />
inflated prices. Similar lawsuits filed by other franchisees are still pending in three other states. (Nation’s Restaurant News<br />
Daily NewsFax 11/08/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
536
Rainforest Cafe<br />
Headquarters<br />
1510 W. Loop South, Houston, Texas 77027 USA<br />
Tel: (713)850-1010 Fax: (713)850-7205<br />
www.rainforestcafe.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 250,000 246,500 245,000<br />
Company-owned ($000) 250,000 246,500 245,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 26 26 27<br />
Company-owned 26 26 27<br />
Franchised - - -<br />
International Sales ($000) 54,000 50,000 48,000<br />
International Units 8 8 8<br />
Average Sales/Unit ($000) 9,350 9,300 9,200<br />
Concept Positioning |<br />
The Rainforest Café is a full-service varied-menu chain with a jungle theme, billed as “A Wild Place to Shop and Eat.” The<br />
concept appeals to young adults and families. The chain, owned by Landry’s Restaurants Inc., operates 34 locations<br />
worldwide, all company-owned.<br />
Rainforest Cafés vary from 15,000-30,000 sq. ft. and seat 300-600 patrons. Décor evokes a rainforest with jungle plants, mist,<br />
waterfalls, robotic animals and bug life. Most restaurants have large marine aquariums. Every 22 minutes, rainstorms are<br />
simulated with flashing lights and high-powered sub-woofers. The retail shop accounts for 20-25% of square footage and<br />
generates about 17% of revenues.<br />
The Rainforest Café oncept was devloped in 1989 by Steven Schussler in his own home. The first “real” unit opened in 1994<br />
at the Mall of America in Minneapolis. The company incorporated that same year and completed its first public offering in<br />
1995. In 2000, Rainforest Café was acquired by Landry’s Seafood Restaurants, Inc. for $75 million. Currently, there are no<br />
major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Rainforest Café is open for lunch and dinner at most locations, and open for breakfast in Las Vegas and in Walt Disney<br />
World’s Animal Kingdom in Orlando. The varied menu features original recipes influenced by cuisines of Mexico, Asia, the<br />
Caribbean, the American Southwest and Louisiana. The lunch and dinner menu includes an extensive line of appetizers,<br />
salads, soups, pastas, pizza, sandwiches, burgers, seafood, beef, pork and chicken. Signature items include Coastal<br />
Calamari, Rainforest Pita and Mogambo Shrimp. Desserts offered include Gorillas in the Mist Banana Cheesecake, Rainforest<br />
Root Beer Float and the new Sparkling Volcano. Favorite alcoholic drinks include Tropical Toucan, Panama Punch and<br />
Mongoose Mai Tai. <strong>Menu</strong> prices range from $8.99–$21.99. Checks average $16.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
537
Promotion Plans |<br />
Rainforest Café is holding family night every Wednesday from 5:00 p.m. to close including family entertainment, kids meal<br />
discounts and a meeting with Wild Bunch characters. (Company Website 2/12/07)<br />
Personnel |<br />
Toni Niece, Director of Marketing<br />
Joe Leahy, Director of Purchasing<br />
Jefferey Cantwell, S.V.P. of Development<br />
Tilman J. Fertitta, CEO<br />
Rick Liem, CFO<br />
Richard Ervin, V.P. of Operations<br />
News & Other |<br />
Rainforest Café opened a Build-A-Bear Workshop inside a unit in Galveston, TX. The chain will sell 10 stuffed animals,<br />
including a white tiger and a red-eyed tree frog, as well as doll clothing and accessories. This is the second Rainforest<br />
restaurant featuring the retailer, which makes stuffed animals customized to children’s specifications. Rainforest Café parent<br />
Landry’s Restaurants Inc. debuted a Build-A-Dino area in its T-Rex Café in Kansas City, KS, last year. Landry’s plans to open<br />
more Build-A-Bear Workshops at Rainforest Cafés later this year. (Nation’s Restaurant News Online 4/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
538
Rally's Hamburgers<br />
Headquarters<br />
4300 W. Cyprus St. Sutie 600, Tampa, Florida 33607 USA<br />
Tel: (813)283-7000 Fax: (813)283-7001<br />
www.checkers.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 285,000 280,500 270,000<br />
Company-owned ($000) 80,000 80,500 85,000<br />
Franchised ($000) 205,000 200,000 185,000<br />
U.S. Number of Units 361 354 368<br />
Company-owned 93 95 100<br />
Franchised 268 259 268<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 800 775 720<br />
Concept Positioning |<br />
Rally’s Hamburgers is a chain of limited-service hamburger restaurants. The menu features all-American fare specializing in<br />
hamburgers and fries. Checkers Drive-In Restaurants, Inc. is the parent company of Rally’s. Rally’s operates the nation’s<br />
largest chain of double drive-thru restaurants. Rally’s operates approximately 25% of its units; the remaining stores are<br />
franchised. Rally’s restaurants are located in the Midwest and on the West Coast.<br />
Stores are designed to operate as freestanding buildings and are located in a variety of sites, including urban, suburban and<br />
rural areas. Stores do not have interior dining rooms, but the exterior features its signature colors of red and white with neon<br />
signage. The double drive-thru concept permits simultaneous service of two cars from opposite sides of the same building,<br />
with an objective of guest service within 45 seconds of arrival at the window. Service is also provided through walk-up<br />
windows. Stores are less than one-quarter the size of typical chains and require approximately one-half the land area. In<br />
temperate climates, the standard building design requires about 760–980 sq. ft.; in colder climates an enclosed vestibule<br />
surrounds the walk-up window area and requires an additional 120 sq. ft. of space. Most units have a patio for outdoor dining;<br />
the space features canopy tables and chairs as well as landscaped surroundings.<br />
Rally’s was founded in 1984 in Clearwater, Fl. and reorganized in 1989 as Rally’s, Inc. A public stock offering was issued<br />
August 1989. Several small acquisitions have been made; operating units involved have all been converted to the Rally’s<br />
concept. Early in 1999, a stock swap merger with Checkers Drive-In Restaurants was announced. The merger was complete<br />
in 1999 with the corporate entity known as Checkers Drive-In Restaurants, Inc. The company is in the midst of a rebranding<br />
program in several markets, converting Rally’s units into Checkers Drive-Thru units. In 2006, Checkers merged with Taxi<br />
Holding Corp. for $172 million dollars in cash and the assumption of an undisclosed amount in debt. The company has not<br />
disclosed any expansion plans.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
539
<strong>Menu</strong> Positioning |<br />
Rally’s is open for lunch and dinner featuring hamburgers, chicken and seafood sandwiches, chicken strips, chili dogs and<br />
fries. Signature items include the Big Buford double-stacked cheeseburger, Rallyburger, The Super Double and Barbecue<br />
Bacon Cheeseburger in single and double sizes and the Deep Sea Double. French fries are seasoned and batter fried. The<br />
concept has launched the Jim Beam Double Cheddarburger and the Jim Beam Cheddar Chicken sandwich. Both items are<br />
topped with Jim Beam BBQ sauce, grilled red onions and smoked Cheddar cheese. Rallyburger Combo Meal (about 30% of<br />
sales) includes burger, fries and a 16-oz. Coke for $2.99–$3.79. Cinnamon Apple Pie is offered for dessert. Its kids’ menu<br />
includes an all-beef hot dog, hamburger or cheeseburger. Beverages include soft drinks and shakes. No alcohol is served.<br />
<strong>Menu</strong> prices range from $1.49–$5.29. Checks average $4.59.<br />
Promotion Plans |<br />
Checkers Drive-In Restaurants Inc. will offer Dale Earnhardt Sr. commemorative cups at its Rally’s Hamburgers and Checkers<br />
locations. The cups will be available through the end of April. The 42-oz. cups tied into a documentary about the NASCAR<br />
driver, entitled “Dale.” (Nation’s Restaurant News 4/24/07)<br />
<strong>Menu</strong> Development |<br />
Checkers and Rally’s rolled out Chicken and Fish Screamer sandwiches for a limited time. The sandwiches are served with<br />
sweet-and-spicy Screamer sauce, American cheese, lettuce, pickles and onions on a toasted sesame bun. Two sandwiches<br />
are priced at $3. (Nation’s Restaurant News p20 3/12/07)<br />
Rally’s Hamburgers introduced three sandwiches for a limited time through the spring. The sandwiches, part of the Southwest<br />
Ranch line, include a bacon double cheeseburger, a cheeseburger and a bacon spicy chicken sandwich. All three sandwiches<br />
have a chipotle-ranch sauce. The chicken sandwich is not available at all locations. Prices vary at each unit. (Nation’s<br />
Restaurant News 4/24/07)<br />
Checkers and Rally’s debuted the Big Cheesy Double, a double cheeseburger with American, pepper Jack and creamy<br />
Cheddar cheese sauce, topped with diced red onions, pickles, ketchup and mustard and served on a toasted sesame-seed<br />
bun. (Franchising Online 10/22/07)<br />
Personnel |<br />
Enrique Silva, CEO/President<br />
Janette McDugald, CFO<br />
Adam Noyes, V.P. of Purchasing<br />
Adam Noyes, V.P. of Operations<br />
Richard Turer, V.P. of Marketing<br />
Ryan Joy, Director of Brand Development<br />
Rally’s Hamburgers named Enrique “Rick” Silva president and chief executive officer. Previously, Silva served in several<br />
leadership roles for Burger King. (Marketwire.com 2/15/07)<br />
News & Other |<br />
Checkers Drive-In Restaurants Inc. has converted all of its Detroit-area Rally’s Hamburgers to the Checkers banner. The<br />
change in names has been an ongoing process for the company. Rally’s currently represents 44% of the company’s 800 units.<br />
(NRN Daily NewsFax 1/22/07)<br />
Checkers Drive-In Restaurants plans to keep most branches of its Checkers and Rally’s Hamburgers drive-thru chains open<br />
until midnight or later. Checkers operates and franchises more than 800 twin-lane drive-thrus in 28 states and the District of<br />
Columbia. (NRN Daily NewsFax 6/19/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
540
Red Lobster<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809 USA<br />
Tel: (407)245-4000 Fax: (407)245-5440<br />
www.redlobster.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,471,800 2,384,300 2,400,000<br />
Company-owned ($000) 2,471,800 2,384,300 2,400,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 651 647 648<br />
Company-owned 651 647 648<br />
Franchised - - -<br />
International Sales ($000) 110,000 110,000 105,000<br />
International Units 30 31 31<br />
Average Sales/Unit ($000) 3,800 3,600 3,600<br />
Concept Positioning |<br />
Red Lobster is the largest full-service, family-oriented seafood chain in the nation. The casual-dining concept specializes in<br />
lobster, shrimp, crab and fresh fish entrées. Although it has made recent efforts to upscale its décor and menu, Red Lobster<br />
remains a family-friendly chain, popular for its all-you-can-eat seafood promotions. Darden Restaurants is the owner and<br />
operator of the Red Lobster brand.<br />
Most Red Lobster restaurants are freestanding and attract families by operating in suburban areas. Recently Red Lobster<br />
unveiled its 7,000-sq.-ft. “Coastal Home” design. This upscale design, which seats 238 guests, features an open kitchen.<br />
Other changes being tested or incorporated in Red Lobster units include dark wood paneling; softer, warmer lighting; more<br />
subdued plateware and more sophisticated flatware; and a redesigned menu. The stated goal of the push toward<br />
sophistication is to give customers a fine-dining experience at half the price.<br />
Bill Darden opened the first Red Lobster in Lakeland, FL, in 1968. The chain had already grown to five units when General<br />
Mills acquired it in 1970. International expansion took the chain into Canada in 1983. Red Lobster, along with Olive Garden,<br />
was spun off from General Mills into Darden Restaurants in 1995. In 1999, the chain started targeting specific markets to<br />
regionalize menus and restaurant designs. In 2005, the company announced a multi-year, five-part strategy designed to<br />
broaden the chain's appeal with seafood lovers. The chain plans continued growth, but has said that its current focus for Red<br />
Lobster is on same-store sales growth, which came to 4.9% in 2006.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
541
<strong>Menu</strong> Positioning |<br />
The broad menus at full-service seafood chain Red Lobster are revamped twice a year to reflect seasonal and regional tastes.<br />
Both a lunch and a dinner menu are featured. As part of its push to upscale the concept, Red Lobster added a menu of daily<br />
fresh fish in 2006; selections change daily and vary by restaurant, but often include Atlantic salmon, tilapia and rainbow trout.<br />
Other signature seafood items include crab legs and live Maine lobsters. Combination entrées remain popular, such as the<br />
Create Your Own Feast, which gives a choice of any two or three selections, including Garlic-Grilled Jumbo Shrimp, Parrot<br />
Bay Jumbo Coconut Shrimp or Garlic Shrimp Scampi. Other feast selections and menu items are Shrimp or Crab Linguini<br />
Alfredo; fin fish such as Seafood-Stuffed Flounder or Grilled Salmon; Steamed Snow Crab Legs; and grilled sirloin steak.<br />
Although primarily focused on seafood, the menu also offers soups and salads, chicken sandwiches and fingers, burgers and<br />
steaks. Lowfat and low-calorie “LightHouse Selections” are highlighted on the menu. All entrées include a salad and a<br />
“bottomless basket” of signature Cheddar Bay Biscuits. Other side items include baked, fried or mashed potatoes as well as<br />
rice pilaf and seasonal steamed vegetables. Several indulgent desserts are available. A full-service bar is offered at most<br />
locations with specialty drinks including Lobsterita and Alotta Colada, beers and wines. Red Lobster is known for its extensive<br />
kids’ menu, featuring Steamed Snow Crab Legs, broiled fish and grilled chicken, all served with steamed vegetables. In late<br />
2006, Red Lobster made another move to improve its “healthful” positioning, announcing that it would switch to trans-fat-free<br />
frying oil. <strong>Menu</strong> prices range from $4.99–$30.99. Checks average $17.<br />
Expansion Plans |<br />
Red Lobster has opened its first Inglewood, CA, restaurant on February 12. The unit is located at the Century Shopping<br />
Center. (Company Release 2/12/07)<br />
Darden Restaurants plans to open 35–40 Olive Gardens and four to 10 Red Lobsters over the next year. In related news, the<br />
company will also debut three to five outlets from its stable of other concepts, which include the Bahama Breeze, Smokey<br />
Bones, Rocky River Grillhouse and Seasons 52 brands. (Foodservice Equipment Reports 3/07 p20)<br />
<strong>Menu</strong> Development |<br />
Red Lobster launched its Big Seafood Festival with three new entrées. Big Seafood Feast features roasted rock lobster tail,<br />
jumbo garlic shrimp scampi and steamed king crab legs. Big Island Seafood Grill includes skewered jumbo sea scallops and<br />
jumbo shrimp with fresh, fire-grilled salmon in a sweet and spicy sauce, served over wild rice pilaf with grilled pineapple. Big<br />
Shrimp Feast comes with jumbo crunch-fried shrimp, jumbo garlic shrimp scampi and a skewer of garlic-grilled jumbo shrimp.<br />
(Company Website)<br />
Red Lobster debuted Mediterranean Jumbo Shrimp Linguini, jumbo shrimp tossed with artichokes and sautéed onions in a<br />
garlic-herb butter sauce served on a bed of linguini and topped with fresh tomatoes. . (Company Release 1/09/07)<br />
Casual dining chains are adding more upscale fare to appeal to a more sophisticated customer base. Red Lobster recently<br />
added a fresh-fish menu, which includes the entrée Maui Laui Shrimp and Salmon, with skewered jumbo shrimp and fresh<br />
salmon fire-grilled and brushed with sweet and spicy glaze. Outback Steakhouse locations offer a Seared Ahi Tuna Appetizer,<br />
with sashimi-grade yellowfin seasoned and seared and served with sides of soy dressing and wasabi vinaigrette. At Chili’s,<br />
guests can dine on Southwest Cedar-Plank Tilapia, featuring a seasoned tilapia fillet, cooked and served on a cedar plank and<br />
finished with a chimichurri sauce and pico de gallo. (Wall Street Journal Online 12/28/06)<br />
Red Lobster added new dishes for its Lobsterfest promotion. These include Margarita Lobster, Shrimp and Scallops, skewered<br />
and fire-grilled with Southwestern seasonings, finished with tequila-lime sauce and pico de gallo, and served atop a wild rice<br />
pilaf; and Chef’s Signature Lobsterfest Pasta, with Maine lobster, jumbo shrimp, asparagus and tomatoes in a creamy lobster<br />
sauce prepared with white wine and butter, served over linguini. (Company Release)<br />
Red Lobster introduced two new entrées for a limited time: Fire-Grilled Lobster and Shrimp, skewered split Maine lobster tails<br />
and jumbo shrimp seasoned and fire-grilled, served over wild rice pilaf, and Citrus-Rum Grilled Scallops and Jumbo Shrimp,<br />
skewer of sea scallops and two jumbo shrimp skewers, fire-grilled and coated with a spicy citrus-rum glaze, served on top of<br />
wild rice pilaf. (Company Website)<br />
Red Lobster rolled out its annual Endless Shrimp menu for a limited time. Dine-in guests can receive endless amounts of two<br />
of the following selections: Garlic Shrimp Scampi, Hand-Breaded Shrimp, Shrimp Linguini Alfredo, Crunch Popcorn Shrimp<br />
and Buffalo Shrimp. (Company Website)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
542
Technology |<br />
Red Lobster has redesigned its website to include new digital features and educational tools, such as a chef blog, fresh fish<br />
recipe book, videocasts and an interactive kitchen. Visitors can view tips on healthy seafood menu choices and receive guided<br />
lessons in fresh fish preparation from Red Lobster chefs. The casual-dining chain’s parent, Darden Restaurants, operates<br />
more than 680 Red Lobster restaurants across the country. (Yahoo! Finance 8/23/07)<br />
Personnel |<br />
Salli Setta, E.V.P. of Marketing<br />
Clarence, Jr. Otis, CEO<br />
Brad Richmond, CFO<br />
Andrew H. Madsen, COO<br />
News & Other |<br />
Red Lobster is being revamped to push the chain toward sophistication. The company wants to give customers a fine dining<br />
experience at half the price. In addition to the menu changes, the restaurant is testing more sophisticated flatware instead of<br />
its current tropical design. (Orlandosentinel.com 10/27/06)<br />
Red Lobster reported October same-store sales were flat. (Company Release 11/3/06)<br />
Red Lobster is testing a new restaurant design at a unit in North Olmsted, OH. Changes include more subdued plateware,<br />
dark wood paneling and softer, warmer lighting. The company is also contemplating switching from cloth to linen napkins.<br />
Other initiatives include the expansion of fresh fish offerings, dishes featuring new flavors, and a redesigned menu. (Orlando<br />
Sentinel 10/27/06; NRN Daily NewsFax 10/30/06)<br />
Darden Restaurants Inc. reported for the second quarter ended November 26 net earnings increased 17% to $61.7 million<br />
from $55.1 million for the same period last year. Revenues grew 4.5% to $1.39 billion. Same-store sales rose 2.9% at Olive<br />
Garden and 0.7% at Red Lobster. (Company Release 12/19/06)<br />
Red Lobster reported November same-store sales rose 0.7%. (Company Release 12/19/06)<br />
Darden Restaurants Inc. announced that its 1,267 Red Lobster and Olive Garden restaurants in North America will switch to a<br />
trans fat-free frying oil. The company did not offer a timeline for when trans fats would be eliminated from breading, salad<br />
dressings and other foods that currently contain partially hydrogenated oil. Darden also did not say whether or not its smaller<br />
chains would make the change. Over 100 Red Lobster and Olive Garden units have already switched to the trans fat-free<br />
frying oil. (NRN Daily NewsFax 12/14/06)<br />
Fish and seafood items are being removed from the menu because of concerns about the sustainability of certain species.<br />
According to a recent report in Science from leading ecologists and economists, it was theorized that the world would run out<br />
of seafood by 2048 if declines in marine species continue at the current rate. The report said that overfishing, pollution and<br />
other environmental factors are destroying wild fisheries and threatening the ocean’s ecological balance. The seafood industry<br />
has said that the study is too alarmist. Many restaurants, however, are making adjustments. Darden Restaurants, which owns<br />
Red Lobster, Olive Garden, Smokey Bones and Bahama Breeze brands, and Compass Group’s America division have both<br />
declared changes in seafood purchasing habits based on sustainability concerns. The study also found that nearly one-third of<br />
commercially fished species have already been depleted to the point where catches are now only 10% of historic highs. These<br />
include bluefin tuna, Atlantic cod, Pacific salmon and Alaskan king crab. The study also says that it is not too late to reverse<br />
the trends. Several environmental groups are working to help consumers, restaurants, distributors and retail stores make<br />
responsible choices. (Nation’s Restaurant News 11/27/06 p1)<br />
Red Lobster reported December same-store sales increased 8%. (Company Release 1/4/07)<br />
Red Lobster reported January same-store sales increased 3%. (Company Release 2/1/07)<br />
Red Lobster’s president, Kim Lopdrup, endorsed expanding the U.S. fish farming industry, claiming that customers will pay<br />
more for locally produced seafood based on a belief that local fish is fresher and of higher quality. Fish farming is a $70 billion<br />
global business. (Associated Press 6/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
543
Red Lobster will adopt a more upscale look in hopes that it will attract consumers with more money to spend at a time when its<br />
traditional customer base has cut back on spending because of rising gas prices and home equity slippage. Red Lobster is<br />
promoting healthier-looking options and has released two new television commercials, with the new tagline “Come see what’s<br />
fresh today.” The new interior will feature fish-shaped tables with stone and wood accents. Classic oldies music has been<br />
removed to make way for more contemporary music. (Brandweek.com 7/25/07)<br />
Red Lobster is aiding sustainability efforts in the lobster trade of Canada’s New Brunswick province. Darden Restaurants,<br />
parent company of Red Lobster, will provide grants to support conservation of New Brunswick lobsters. (NRN Daily NewsFax<br />
7/23/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
544
Red Robin Gourmet Burgers<br />
Headquarters<br />
6312 South Fiddlers Green Circle Suite 200N, Greenwood Village, Colorado<br />
80111 USA<br />
Tel: (303)846-6000 Fax: (303)846-6013<br />
www.redrobin.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,009,341 806,235 671,455<br />
Company-owned ($000) 645,000 479,203 397,397<br />
Franchised ($000) 364,341 327,032 274,058<br />
U.S. Number of Units 329 281 237<br />
Company-owned 208 163 137<br />
Franchised 121 118 100<br />
International Sales ($000) 39,665 33,882 31,595<br />
International Units 18 18 18<br />
Average Sales/Unit ($000) 3,377 3,288 3,236<br />
Concept Positioning |<br />
Red Robin Gourmet Burgers, Inc. owns, operates and franchises nearly 300 restaurants in the U.S. and Canada under the<br />
trade name Red Robin's Gourmet Burgers & Spirits. The casual-dining chain specializes in hamburgers, offering over 20<br />
varieties. Headquartered in Colorado, Red Robin operates more than 350 restaurants nationwide.<br />
Units are located primarily in suburban malls and range in size from 6,000–10,000 sq. ft. Eating areas and lounges are<br />
generally found on separate levels. Most units also feature an outdoor patio. The décor is casually sophisticated, colorful and<br />
comfortable.<br />
The business began in 1969 when Gerald Kingen purchased a small Seattle tavern near the University of Washington and<br />
renamed it Red Robin. In 1996, Mike Snyder, then a franchisee, became president and increased revenues and profits for Red<br />
Robin. A recapitalization was completed in 2000, with Red Robin acquiring The Snyder Group Company and Snyder's 14-unit<br />
franchised company. In 2006, Red Robin Gourmet Burgers Inc. announced its intent to acquire the assets of 13 franchised<br />
Red Robin units in Washington for $42 million. The locations are owned by affiliates of Great Western Dining. Expansion plans<br />
for the company include a push into Memphis, TN, as well as new units in South Carolina and Kentucky.<br />
<strong>Menu</strong> Positioning |<br />
Red Robin features one menu for lunch and dinner, offering appetizers, soups, salads, sandwiches, hamburgers and seafood.<br />
Its signature items are its more than 40 different gourmet burger choices on the menu. One of its most popular burgers is the<br />
Red Robin Bacon Cheeseburger. In addition to the wide selection of listed burgers, guests are encouraged to create and<br />
customize their own burgers, which are always served with Bottomless Steak Fries. Other favorites include appetizers such as<br />
Towering Onion Rings; salads such as the Fajita Fiesta Pollo Salad; and seafood options such as Arctic Cod Fish & Chips.<br />
Healthy options include Grilled Turkey Burger, Garden Burger and Lettuce-Wrapped Protein Burger. A kids’ menu features the<br />
Rad Robin Burger, Cheesy Mac 'N Cheesy and Red Robinetti Spaghetti. Desserts include Mountain High Mudd Pie and Hot<br />
Fudge Sundae. Alcoholic beverages are served and include the Ultimate Margarita, Tropical Mai Tai, beers & wines and<br />
Hawaiian Heart Throb Smoothie (non-alcoholic). <strong>Menu</strong> Prices are range from $2.99–$10.99. Checks average $10.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
545
Expansion Plans |<br />
Red Robin Gourmet Burgers Inc. plans to open a new Missouri restaurant in Dardenne Prairie on November 20. The new unit<br />
will be the company’s seventh in Missouri. (Company Release 11/9/06)<br />
Red Robin Gourmet Burgers is expanding into the Memphis and Nashville markets with up to eight locations in development.<br />
The first Nashville location is already open in Mount Juliet and two additional units will open there next year. The company’s<br />
first Memphis-area units will open in early 2007 and an additional four units will follow. Red Robin is also looking to expand in<br />
South Carolina, Kentucky, Alabama and Florida. In related news, the chain opened a unit in Edwardsville, IL, its 10th in the<br />
state, and expects to open another in Illinois early next year. Red Robin operates 335 units in Canada and the U.S. (Memphis<br />
Business Journal 10/20/06; Belleville.com 10/17/06)<br />
Red Robin Gourmet Burgers Inc. has completed the transaction of acquiring Federal Way Restaurant in Washington. The<br />
restaurant, along with Puyallup restaurant, were the last two to be acquired from Great Western Dining. (Company Release<br />
11/21/06)<br />
Red Robin Gourmet Burgers will open a new restaurant in Murfreesboro, TN, on January 15. The new location is the<br />
company’s second in Tennessee. (Company Release 12/21/06)<br />
Red Robin Gourmet Burgers will open a new restaurant in Columbus, GA, on January 15. The new location is the company’s<br />
third in Georgia. (Company Release 12/21/06)<br />
Red Robin Gourmet Burgers Inc. has completed the acquisition of the Puyallup Restaurant, located in Washington State for $5<br />
million. (Company Release 12/26/06)<br />
Red Robin Gourmet Burgers Inc. will open a new restaurant in Springfield, MO, on January 15. (Company Release 1/3/07)<br />
Red Robin Gourmet Burgers Inc. will open a new restaurant in Marysville, WA, and Montgomery, AL, on February 12.<br />
(Company Release 1/30/07)<br />
Red Robin Gourmet Burgers opened its 11th Illinois restaurant in Fairview Heights on February 5. (Company Release 2/5/07)<br />
Red Robin Gourmet Burgers Inc. will open a new unit in Evans, GA, on April 16. The location will be the company’s fourth in<br />
Georgia. The company will also open a new unit in Trussville, AL, on April 9. It will mark the company’s second Alabama<br />
location. (Company Release 3/28/07)<br />
Red Robin Gourmet Burgers Inc. will slow its expansion so it can focus on building a national image. Red Robin wants to focus<br />
on improving restaurant performance, reducing construction costs and building awareness in markets where it lacks brand<br />
recognition. The company opened 18 new locations in the first quarter of 2007. For the year, the company expects to open<br />
24–27 company-owned units and franchisees are expected to open 15–17 new locations. (Globest.com 5/29/07)<br />
Red Robin continues its Tennessee expansion with a unit in Jackson. The unit is Red Robin’s third in the state. The restaurant<br />
will open June 18 in the Columns Shopping Complex. As a part of the grand opening, Red Robin will host a Burgers with a<br />
Heart fundraiser to benefit the Muscular Dystrophy Association; 50¢ of every burger sold during grand opening week will be<br />
donated to the cause. (Company Release 6/5/07)<br />
Red Robin continues its Alabama expansion with a unit in Huntsville. The Huntsville location, which marks the company’s third<br />
in the state, opened June 11. As a part of the grand opening, Red Robin will host a Burgers with a Heart fundraiser to benefit<br />
Huntsville Fire and Rescue; 50¢ will be donated to the cause for every burger sold during grand opening week. (Company<br />
Release 6/5/07)<br />
Red Robin plans to slow store expansion and focus on building the company’s national image. Chain executives are working<br />
to improve restaurant performance and brand recognition in underdeveloped markets. (GlobeSt.com 5/29/07)<br />
Red Robin Gourmet Burgers will open its fourth Tennessee location in Collierville on June 25. The new restaurant is located at<br />
The Avenues of Carriage Crossing shopping complex. (RTT News 6/19/07)<br />
Red Robin continues to grow in Southeastern markets with the launch of new units in North Carolina and Tennessee. The new<br />
locations are in Wake Forest, NC, and Cordova, TN. As is its tradition, Red Robin will mark the openings with grand openingweek<br />
promotions that benefit local fire departments. (Company Release 6/27/07)<br />
Red Robin Gourmet Burgers Inc. will open its 61st California restaurant in Fresno on July 16. The unit will be located in the<br />
Broadway Faire shopping center and will be 7,000 sq. ft. (Company Release 7/11/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
546
Red Robin Gourmet Burgers will open a unit in Burlington, NC, on July 30. The location will mark the chain’s 13th unit in North<br />
Carolina. (Company Release 7/17/07)<br />
Red Robin Gourmet Burgers will open a unit in Tempe, AZ, on August 6. The location will mark the chain’s 14th unit in<br />
Arizona. (Company Release 7/18/07)<br />
Red Robin Gourmet Burgers Inc. will open a unit in Fort Myers, FL, on August 13. The unit will be located on Gulf Center Drive<br />
and will seat 200 guests. (Company Release 7/23/07)<br />
Red Robin Gourmet Burgers Inc. opened its 21st Colorado restaurant in Westminster on November 5. The new unit will be<br />
located at the Orchard Town Center. (Company Release 10/9/07)<br />
Red Robin Gourmet Burgers Inc. will open its 62nd California location in Foothill Ranch November 19. The new 5,600-sq.-ft.<br />
restaurant accommodates 221 guests. (Earthtimes.org 11/07/07)<br />
Promotion Plans |<br />
Red Robin Gourmet Burgers is launching its second annual “Next Gourmet Burger Kids’ Recipe Contest.” The burger chain is<br />
inviting children to visit their local Red Robin restaurant and submit an original gourmet burger recipe along with a 100-word<br />
statement on why their burger deserves to win. The contest will run through mid-September. The winning burger will be<br />
featured in every Red Robin restaurant next summer. The winning burger recipe and approximately 50 additional recipes from<br />
kids will be sold online next summer to benefit the National Center for Missing & Exploited Children. (CNNMoney.com 8/13/07)<br />
Red Robin Gourmet Burgers teamed with the Denver Broncos for the second annual “Denver Broncos Kickoff Kid”<br />
sweepstakes. The sweepstakes awards 10 kids, ages 6–12, designation as the official Kickoff Kid during a Denver Broncos<br />
home game this season. The Kickoff Kid is responsible for removing the tee from the field after each Broncos kickoff. Red<br />
Robin restaurants in Colorado are accepting entries from July 16–December 16. Entry forms and contest rules are available at<br />
all Colorado Red Robin locations. (Cnnmoney.com 7/9/07)<br />
Red Robin Gourmet Burgers Inc. plans to increase national advertising in 2008. The company launched its first national<br />
advertising campaign last April with a budget of $11 million generated from 1% revenue collected from each restaurant. For<br />
2008, Red Robin says it will increase collections to 1.5% per store. (Denver Business Journal 11/8/07)<br />
Red Robin announced the “Au Brie Burger a la Français” as winner of its annual “The Next Gourmet Burger Kids’ Recipe<br />
Contest.” Created by a 12-year-old boy from San Diego, the new burger features ground sirloin on a croissant, topped with<br />
Brie, potatoes, butter, cream, fresh rosemary, salt and pepper and served with pommes frites (french fries). The burger will be<br />
menued in Red Robin restaurants and will appear in a kids’ cookbook next summer. Red Robin highlights a new kid-created<br />
burger each year and donates a portion of the winning burger’s sales to the National Center for Missing & Exploited Children.<br />
(CNNMoney.com 11/5/07)<br />
<strong>Menu</strong> Development |<br />
Red Robin Gourmet Burgers added a Honkey Tonk BBQ Pork Burger to its menu. The burger features BBQ pulled pork,<br />
banana peppers and yellow onions on a toasted sesame-seed bun. (Company Release 10/12/06)<br />
Red Robin Gourmet Burgers rolled out a Gingerbread Shake, blending a gingerbread-flavored milkshake with graham cracker<br />
crumbs, topped with a gingersnap cookie. (Company Release 11/28/06)<br />
Red Robin Gourmet Burgers added a Disgruntled Elf cocktail for the holiday season. The Disgruntled Elf mixed rum, tequila,<br />
gin and triple sec with Granny Smith apple syrup and lemon-lime soda. (Nation’s Restaurant News 12/18/06 p36)<br />
Red Robin Gourmet Burgers Inc. will introduce its new Spicy Asian Burger, compliments of nine-year-old Adriana<br />
Montgomery, winner of “The Next Gourmet Burger Kids Contest.” The new burger features hamburger, wonton strips, Napa<br />
cabbage, sesame seeds, teriyaki and creamy ginger wasabi sauces. The item will be available in all U.S. Red Robin locations<br />
from May 21 to July 15. (Company Release 1/18/07)<br />
Pork accounts for 40% of many operators’ menus, and pork sandwiches are one way for restaurants to mix up the selections.<br />
At Buckeye Roadhouse in Mill Valley, CA, guests can dine on a slow-smoked spicy pork sandwich with chipotle chips and<br />
coleslaw. Red Robin Gourmet Burgers outlets offer Honky Tonk BBQ Pork Burger, with pulled pork, banana peppers and<br />
onions. Blackbird in Chicago menus an organic pork belly sandwich with cabbage slaw, mayonnaise and Dijon mustard with a<br />
summer vegetable salad and garlic frites. (Restaurants & Institutions 1/07 p 39)<br />
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published.<br />
547
Red Robin Gourmet Burgers introduced three new menu items: Bruschetta Chicken Burger, Mo-Cheese-Mo Burger and the<br />
Buzzard Chicken Wrap. The Bruschetta Chicken Burger features grilled whole chicken breast with bruschetta salsa, Provolone<br />
cheese, pesto aïoli, romaine lettuce and balsamic cream on ciabatta bread. The Mo-Cheese-Mo Burger features a char-broiled<br />
burger with Provolone, Swiss, Parmesan and Bleu cheeses garnished with lettuce, tomato, garlic mayo and red onion on<br />
ciabatta bread. The Buzzard Chicken Wrap features chicken tenders with a cayenne pepper sauce, carrots, celery, crumbled<br />
Bleu cheese, Bleu cheese dressing and romaine lettuce wrapped in a jalapeño-cheese flour tortilla served with Bottomless<br />
Steak Fries and fresh melon. The items are available from February 27–April 22. (Company Release 2/19/07)<br />
Red Robin Gourmet Burgers debuted new beverages for the spring. These include Mandarin Mayhem Limeade, blending<br />
Torani Mandarin orange and lime syrups, lemon-lime soda and fresh squeezed limes; Mayan Mango Smoothie, mixing<br />
coconut cream, pineapple juice, mango and vanilla cream; and Swaggering Starfish, featuring Captain Morgan’s Original<br />
Spiced Rum, coconut cream, pineapple juice and mango. (Company Release 2/19/07; Nation’s Restaurant News Online<br />
2/20/07)<br />
Red Robin Gourmet Burgers rolled out Mayan Mango Smoothie and Mandarin Mayhem Limeade. (Company Release 3/27/07)<br />
Red Robin Gourmet Burgers introduced Kool Kiwi Limeade with Sprite soda, Torani lime syrup, Monin kiwi syrup and fresh<br />
limes. (Company Promo 6/26/07)<br />
Red Robin introduced new fall menu items. Selections include: • Blackened Bayou Burger—a blackened burger topped with<br />
roasted red peppers, onions, pepper Jack cheese, Creole mustard sauce and cabbage-carrot mix on a cornmeal jalapeño<br />
kaiser roll • Sonoma Turkey Burger—a seasoned turkey burger, charbroiled and layered with Spanish romesco spread, goat<br />
cheese, avocados, pickled onions, tomatoes and field greens served on a wheat bun • Whiskey River BBQ Chicken Salad—a<br />
charbroiled chicken breast smothered in Red Robin’s signature Whiskey River BBQ sauce, served on crisp greens with<br />
Cheddar cheese, chipotle beans, avocado, onion straws and diced tomatoes (Franchising.com 9/25/07)<br />
Red Robin added a Blueberry Pomegranate Limeade to its Bottomless Beverage menu. The drink features blueberries,<br />
pomegranate and lime syrups and Sprite, served with fresh lime wedges. (Company Website)<br />
Franchise Activity |<br />
Red Robin Gourmet Burgers, Inc. has acquired 17 franchised units throughout California from Top Robin Ventures and Morite<br />
of California for $47.5 million in cash. Red Robin operates 349 restaurants nationwide. (NRN Daily NewsFax 2/02/07;<br />
Company Release 1/31/07; Foodservice Equipment & Supplies 2/07/07)<br />
Technology |<br />
Red Robin Gourmet Burgers Inc. has launched a new Website, www.redrobin.com. The Website includes features such as<br />
user-friendly navigational elements, animations and streaming media with the new look and feel the company debuted last<br />
summer. (Company Release 12/28/06)<br />
Personnel |<br />
Scott Schooler, V.P. of <strong>Menu</strong> Development<br />
Dennis B. Mullen, CEO<br />
Katherine L. Scherping, CFO<br />
Ray Masters, V.P. of Purchasing<br />
Jefferey Neeley, V.P. of Operations<br />
Susan Lintonsmith, CMO<br />
Red Robin Gourmet Burgers Inc.’s senior vice president and chief concept officer, Bob Merullo, is leaving the company after<br />
20 years of service. Merullo’s replacement has not been named. (NRN Daily NewsFax 11/30/06)<br />
Red Robin Gourmet Burgers Inc. hired Wes Garnett as vice president of team member resources. Previously, Garnett served<br />
as senior vice president of Buca Di Beppo. (NRN Daily NewsFax 1/10/07)<br />
Red Robin Gourmet Burgers Inc. promoted Katie Scherping and Annita Menogan to senior vice president. Previously, both<br />
Scherping and Menogan served as vice president for the company. (Company Release 2/21/07)<br />
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published.<br />
548
Red Robin Gourmet Burgers hired Susan Lintonsmith as Senior Vice President and Chief Marketing Officer. Previously,<br />
Lintonsmith served as Vice President and General Manager for WhiteWave Foods’ Horizon Organic brand. Lintonsmith will be<br />
in charge of leading development and execution of the company’s brand and marketing strategies and activities as well as<br />
managing the company’s internal marketing team and several outside agencies. (Prnewswire.com 4/23/07)<br />
News & Other |<br />
Red Robin Gourmet Burgers Inc. reported for the third quarter ended October 1 net earnings increased 4.7% to $7.9 million.<br />
Revenues grew 30.1% to $148.6 million from $114.2 million. Same-store sales rose 0.8%. (Company Release 11/2/06)<br />
Red Robin Gourmet Burgers reported for the fourth quarter ended December 31 net earnings increased 45.5% to $8.8 million<br />
from $5.5 million for the same period last year. Revenues grew 40.6% to $163.8 million from $116.5 million. Same-store sales<br />
rose 0.2%. For the year ended December 31 net earnings increased 7% to $29.4 million from $27.4 million for the same period<br />
last year. Revenues rose 27.3% to $618.7 million from $486 million. Same-store sales grew 2.4%. (Company Release<br />
2/22/07)<br />
Red Robin Gourmet Burgers reported for the first quarter ended April 22 net earnings rose 1.4% to $7.4 million from $7.3<br />
million for the same period last year. Revenues increased 24.5% to $212.3 million from $170.5 million. Same-store sales fell<br />
0.5%. (Company Release 5/24/07)<br />
Red Robin Gourmet Burgers Inc. agreed to settle pending lawsuits against the chain. The lawsuits, filed in 2005 after the<br />
company’s stock price fell, claim that the company withheld adverse financial information. The proposed settlement in one<br />
shareholder’s lawsuit is for $1.5 million and in another, the plaintiff’s counsel will receive $250,000. Both settlements are<br />
covered by insurance and are expected to be complete later. (Bizjournals.com 5/24/07)<br />
Red Robin Gourmet Burgers Inc. has acquired 15 of the 17 current franchised Red Robin units from franchisees Top Robin<br />
Ventures and Morite of California. Funded by the company’s new $300 million amended credit facility, Red Robin Gourmet<br />
Burgers Inc. purchased the units for approximately $41.9 million. (RTTNews.com 6/21/07)<br />
Red Robin Gourmet Burgers was able to raise $3,207.50 for the Muscular Dystrophy Association at its store on Vann Drive in<br />
Jackson, TN. The donation was on behalf of the Jackson Tennessee Fire Department. The chain donated 50¢ from every<br />
burger sold during its “Burgers With A Heart” campaign. (Jacksonsun.com 7/19/07)<br />
Red Robin Gourmet Burgers Inc. acquired the assets of one of the two remaining franchised restaurants owned by Top Robin<br />
Ventures Inc. Red Robin also acquired and opened a new restaurant that was under construction at the time of the original<br />
closing. The existing unit had been owned by Red Robin since the original closing under a management services agreement.<br />
The other Top Robin restaurant continues to be managed by Red Robin Gourmet Burgers Inc. under a management services<br />
agreement with Top Robin. Red Robin paid $3,327,500 for the existing unit and $1,275,976 for the new unit. (Company<br />
Release 7/16/07)<br />
Red Robin Gourmet Burgers reported for the second quarter ended July 15 net earnings declined 31.9% to $4.9 million from<br />
$7.2 million for the same period last year. Revenues increased 31.5% to $178.6 million from $135.9 million. Same-store sales<br />
grew 3.1%. (Company Release 8/16/07)<br />
Red Robin Gourmet Burgers Inc. reported a 36.4% increase in profit for the third quarter ended October 7. The increase is due<br />
to a 27% surge in revenue from higher check averages and stronger customer traffic. Same-store sales at corporate<br />
restaurants rose 4.8%. (NRN Daily NewsFax 11/12/07)<br />
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published.<br />
549
Restaurants Unlimited<br />
Headquarters<br />
1818 N. Northlake Way, Seattle, Washington 98103 USA<br />
Tel: (206)634-3082 Fax: (206)547-4829<br />
www.r-u-i.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
Chain Brands<br />
Kincaid's Fish, Chop & Steakhouse<br />
Palomino Restaurant Rotisseria Bar<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 97,000 91,500 139,000<br />
Company-owned ($000) 97,000 91,500 139,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 20 20 30<br />
Company-owned 20 20 30<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Restaurants Unlimited Inc. (RUI) is the privately held, multiconcept operator of more than a dozen casual-dining concepts. Its<br />
two flagship restaurant chains are Kincaid’s Fish, Chop & Steakhouse and Palomino Restaurant Rotisseria & Bar. RUI also<br />
operates a number of single-unit restaurants including Horatio's, Palisade, Scott's, Clinkerdagger, Stanley & Seafort’s, Maggie<br />
Bluff’s, Skates on the Bay, Ryan's Grill, Fondi, Simon & Seafort's and Cutter's Bayhouse. The company operates a total of 20<br />
units in Alaska, Arizona, California, Colorado, Hawaii, Indiana, Pennsylvania, Ohio, Minnesota, North Carolina, Texas, Virginia<br />
and Washington. All locations are company-owned.<br />
The units are freestanding, average 7,000–11,500 sq. ft. and seat 250–370 patrons. RUI's restaurants typically have an<br />
extensive bar and outdoor seating.<br />
Kincaid’s units are freestanding, average 5,400 sq. ft. and offer fresh fish, seafood and certified Nebraska beef. Each unit has<br />
a traditional American dinnerhouse design with deep-toned woods, high ceilings and hand-painted local art.<br />
Palomino units are freestanding, average 4,350 sq. ft. and feature exhibition kitchens, wood-fired grills, ovens and rotisseries.<br />
Décor highlights include marble, high-gloss lacquered woods, glass sculpture light fixtures, and indoor palm and yucca trees.<br />
The menu focuses on regional American cuisine and simple rustic dishes of Europe. Units offer outdoor seating and can<br />
accommodate large parties.<br />
Rich Komen, owner of RUI, started Restaurants Unlimited in 1969 with the opening of The Red Baron, a Seattle steak and<br />
lobster house. In 1989, the company opened the first Palomino. The company also founded the Cinnabon chain. The company<br />
has not announced any major expansion plans.<br />
Personnel |<br />
Steve Stoddard, CEO<br />
Robert Nowlin, CFO<br />
Attila Szabo, COO<br />
Don Adams, V.P. of Development<br />
Don Adams, V.P. of Creative Development<br />
Will Powers, Senior Marketing Director<br />
550<br />
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published.
News & Other |<br />
Restaurants Unlimited of Seattle has been acquired by Sun Capital Partners for an undisclosed amount. Restaurants<br />
Unlimited operates 29 restaurants in 12 states, including Stanley & Seafort’s, Palomino, Kincaid’s Fish, Chop & Steak House<br />
and Palisade. The company had revenues of $143.5 million in 2006. Sun Capital Partners is an equity firm that specializes in<br />
purchasing “distressed companies.” Previous purchases include Fazoli’s, Real Mex Restaurants and Marsh Supermarkets.<br />
(The Seattle Times 3/28/07; Company Release 3/27/07)<br />
Restaurants Unlimited Inc. will acquire Pacific Coast Restaurants Inc. Restaurants Unlimited Inc. will receive Portland City<br />
Grill, Henry’s 12th Street Tavern, Manzana Rotisserie Grill, Newport Seafood Grill, the Portland Steak & Chophouse, the<br />
Stanford’s Restaurant and Bar chain and the Newport Bay Restaurant chain. The deal will formally close in 30–45 days.<br />
(Bizjournals.com 6/19/07)<br />
Restaurants Unlimited completed its acquisition of Pacific Coast Restaurants Inc. The terms of the transaction were not<br />
disclosed. (Seattle.dbusinessnews.com 7/18/07)<br />
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published.<br />
551
Roadhouse Grill<br />
Headquarters<br />
4440 PGA Blvd. Suite 201, Palm Beach Gardens, Florida 33410 USA<br />
Tel: (561)624-8989 Fax: (561)804-7784<br />
www.roadhousegrill.com<br />
Ownership: Public<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 132,100 139,000 145,000<br />
Company-owned ($000) 128,000 135,000 141,000<br />
Franchised ($000) 4,100 4,000 4,000<br />
U.S. Number of Units 59 62 70<br />
Company-owned 57 60 68<br />
Franchised 2 2 2<br />
International Sales ($000) 16,000 13,500 13,000<br />
International Units 9 9 9<br />
Average Sales/Unit ($000) 2,100 2,050 2,030<br />
Concept Positioning |<br />
Roadhouse Grill, a full-service restaurant chain, is a cross between an old-fashioned steakhouse and a roadhouse-style<br />
saloon. The casual-dining concept specializes in grilled entrées, including steak, chicken and seafood.<br />
Interiors have a large, open area complete with exhibition kitchens, exposed ceilings and brick and clapboard cedar walls<br />
decorated with colorful, hand-painted murals and neon. Tables have metal pails filled with peanuts for munching and patrons<br />
are encouraged to toss shells onto the floor. Jukeboxes play popular music. Exteriors are rough-sawed siding with a tin roof<br />
and wood plank porch. Its current prototype is 6,800 sq. ft. with seating for 260 persons.<br />
Roadhouse Grill was founded in 1992 by John D. Toole, III. In early 1995, Berjaya Group (Cayman) Ltd. acquired a 51.9%<br />
stake in the company. It completed its initial public offering in 1996. In 2002, Roadhouse filed for Chapter 11 bankruptcy and is<br />
currently working to emerge from bankruptcy. Expansion will primarily be through development of company-owned units;<br />
international development will primarily focus on franchise agreements. In 2001, a joint venture with Cremonini Group, a<br />
leading publicly traded Italian company specializing in the food-service industry in Europe, led to the openings of a number of<br />
units in Milan, Italy. Roadhouse also has agreements with several international franchisees in countries such as Brazil, China<br />
and Malaysia. Malaysian trading company Berjaya Group Berhad owns over 65% of Roadhouse Grill. In 2005, Roadhouse<br />
Grill signed a merger agreement with Steakhouse Partners Inc. Specific terms were not disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Roadhouse Grill features one menu for lunch and dinner, offering appetizers, soups, salads, sandwiches, pasta, aged steaks,<br />
prime rib, beef ribs, chicken and seafood. There are over 60 menu items, including 13 cuts of steak. Each entrée is served<br />
with salad and a choice of baked potato, baked sweet potato, fries or rice pilaf. Signature items include Maryland Crab Cakes,<br />
Old-Fashioned Chili, Fish & Chips, Chicken BLT Salad, Black & Bleu Burger, Baby Back Ribs, and FlatIron Steak. Alcoholic<br />
drinks include Roadhouse Tea, Roadhouse Razzy and a selection of beers, wines and soft drinks. Messy Brownie, Messy<br />
Sundae, and Messy Apple Cobbler are a few of the desserts offered. <strong>Menu</strong> prices range between $1.99 and $19.49. Checks<br />
average $12.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
552
Personnel |<br />
Ayman A. Sabi, CEO<br />
Michael C. Brant, CFO<br />
News & Other |<br />
Roadhouse Grill will be acquired by Duffy’s Holdings Inc. for $29 million. Duffy’s will invest $11 million in cash in the brand and<br />
assume $10.1 million in debt with the purchase. In addition, Duffy’s will convert at least 30 Roadhouse Grill outlets to the<br />
Duffy’s brand, with select restaurants continuing to operate under the Roadhouse banner. Duffy’s operates 15 Duffy’s Sports<br />
Grill casual-dining restaurant and sports bars in Florida. Roadhouse Grill operates and franchises 73 namesake restaurants<br />
nationwide. (Nation’s Restaurant News Online 4/09/07; NRN Daily NewsFax 4/10/07; PalmBeachPost.com 4/2007; Company<br />
Release 4/09/07)<br />
Duffy’s Holdings Inc. completed its acquisition of 85.5% of the outstanding common stock of Roadhouse Grill Inc. Duffy’s will<br />
operate units as either Roadhouse Grill or Duffy’s Sports Grill. (Company Release 6/1/07)<br />
The Roadhouse Grill is changing its concept from a steakhouse to a sports bar. Purchased this year by Palm Beach-based<br />
Duffy’s Sports Grill, The Roadhouse Grill will now have paper place mats instead of five-page handout menus, fewer food<br />
offerings and more bar fare. The Roadhouse Grill operates 57 company-owned restaurants in Florida, Alabama, Arkansas,<br />
Georgia, Louisiana, Mississippi, New York, North Carolina, Ohio and South Carolina. (St. Petersburg Times Online 8/5/07)<br />
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published.<br />
553
Rock Bottom Brewery<br />
Headquarters<br />
248 Centennial Pkwy., Louisville, Colorado 80027 USA<br />
Tel: (303)664-4000 Fax: (303)664-4199<br />
www.rockbottom.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 119,000 115,500 112,500<br />
Company-owned ($000) 119,000 115,500 112,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 30 30<br />
Company-owned 32 30 30<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,000 3,850 3,750<br />
Concept Positioning |<br />
The Rock Bottom Restaurant & Brewery restaurant chain features its own microbrewery as an integral part of the concept.<br />
Units are open seven days a week from 11:00 a.m. into the late night and appeal to a broad-based, but young, clientele. Rock<br />
Bottom also retails clothing and other merchandise with its logo or custom-brewed beer names. The moderately priced, beerbased<br />
menu features a medley of items ranging from Brown Ale Chicken and Tenderloin with Roasted Garlic to a variety of<br />
salads, homemade beer bread and Asiago cheese dip.<br />
Units are largely freestanding ranging in size from 7,400-11,500 sq. ft. and are located in high traffic metropolitan areas. Décor<br />
is assembled around stainless steel brewing equipment. Seating between 200-375 patrons, the dining rooms feature partial or<br />
complete exhibition-style kitchens, wood-finished interiors, high ceilings and warm lighting to complement the brewing area.<br />
Nearly all units have pool tables, outdoor seating and live music. Televisions are set throughout the bar area for customers to<br />
watch sports and other special events. Newer prototypes include a revamped interior featuring a mixture of brick and wood<br />
walls, an expanded bar and pool table area, a warmer color scheme, and redesigned exterior.<br />
Rock Bottom Restaurants, Inc. was founded in 1976 by Frank B. Day. It was incorporated in 1994 and had its initial IPO that<br />
same year. In late 1999, management, led by Day, took the company private. In addition, parent Rock Bottom also operates<br />
three other concepts: ChopHouse & Brewery, with units in Denver, Cleveland and Washington, DC; Old Chicago, with 50<br />
locations nation wide; and Sing Sing, a piano bar operation that features duel pianos. The three Sing Sing units are located in<br />
Denver and Irving and San Diego, CA.<br />
<strong>Menu</strong> Positioning |<br />
More than 40 bistro-style items on the menu. Offers both lunch and dinner featuring appetizers, soups & salads, sandwiches,<br />
pastas, chicken, steaks, and seafood. Signature items include Asiago Cheese Dip, Tuscan Smoked Chicken Salad, Brewer's<br />
Club, Southwestern Shrimp & Chicken Pasta, Smoked Salmon Fish & Chips, and Texas Fire Steak. Full liquor service<br />
available, which accounts for 38.6% of sales; own micro-brewed beers account for 55.7% of alcoholic beverage sales. Also<br />
wine and Pepsi products are available. Desserts include Carrot Cake, Triple Chocolate Stout Cheesecake, and Apple Pear<br />
Crisp. <strong>Menu</strong> Prices: $5.95–$18.95. Entree prices: $7.95–$18.95, most below $10. Checks average $13–$31<br />
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published.<br />
554
<strong>Menu</strong> Development |<br />
Rock Bottom Restaurant & Brewery added Flatbread Brewschetta featuring grilled flatbread with crispy mozzarella cheese,<br />
smoked salsa cruda and a two-olive pine nut tapenade. (Company Website)<br />
Rock Bottom Restaurant & Brewery added Honey Rosemary Chicken, Risotto Caprese and Basil Asiago Chicken to its menu.<br />
The Honey Rosemary Chicken features honey rosemary-glazed grilled chicken breast, tossed with roasted tomatoes and<br />
asparagus and served over risotto. Risotto Caprese is prepared with roasted tomatoes, fresh mozzarella, basil, spinach and<br />
roasted asparagus and topped with a balsamic reduction. Basil Asiago Chicken features herb-crusted chicken breast filled with<br />
Asiago cheese, sundried tomatoes and fresh basil with a white wine portobello cream sauce and white Cheddar mashed<br />
potatoes. (Company Website)<br />
Rock Bottom Restaurant & Brewery introduced Emperor’s Salad to its menu. It is prepared with seared sashimi-style ahi or<br />
chili-glazed shrimp over spinach, chilled noodles, pickled ginger, crispy wonton chips, stirfried shiitake mushrooms, peppers,<br />
onions and carrots in a homemade honey-soy dressing. (Company Website)<br />
Rock Bottom Restaurant & Brewery rolled out several new sandwiches. These include: • Grilled Jerk Chicken—jerk-rubbed<br />
chicken breast served on grilled focaccia with avocado, pico de gallo, jalapeño strips and mango mayonnaise • Pub-Style<br />
Philly—thinly sliced top sirloin pan-seared with red and poblano peppers, roasted mushrooms and onions, served on a freshbaked<br />
roll and paired with a choice of Ale Cheddar dip or au jus • Turkey Bacon Cobb—oven-roasted turkey breast served on<br />
grilled flatbread with sweet peppered bacon, sliced avocado, roasted tomatoes, sprouts and mixed greens, finished with<br />
rosemary dressing and bleu cheese crumbles • Grilled Tuna Steak—grilled sesame-crusted yellowfin tuna fillet served on<br />
grilled flatbread with citrus wasabi aïoli, sliced avocado, sprouts, tomatoes and mixed greens. (Company Website)<br />
Personnel |<br />
Ned Lidvall, CEO<br />
John Coletta, CFO<br />
Mary Ann Rose, V.P. of Purchasing<br />
Gary Foreman, V.P. of Operations<br />
Mike Thom, V.P. of Research & Development<br />
Bethany Lehmann, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
555
Roly Poly<br />
Headquarters<br />
13245 Altantic Blvd Suite 4, Jacksonville, Florida 32225 USA<br />
Tel: (203)341-8853 Fax: (203)341-9957<br />
www.rolypoly.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 80,000 95,000 85,000<br />
Company-owned ($000) 80,000 95,000 85,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 175 250 276<br />
Company-owned 175 250 276<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 375 360 350<br />
Concept Positioning |<br />
Roly Poly is a limited-service chain offering a different approach to wraps. Its friendly atmosphere is inviting to both families as<br />
well as friends to sample what the “Purveyor of Fine Sandwiches, Soups and Salads” has to offer. Roly Poly’s unique<br />
approach to wraps is the key to its success. Instead of serving traditional wraps filled with beans and rice, Roly Poly fills its<br />
wraps with sandwich fillings. The privately held company currently has stores in 30 states, all of which are franchised.<br />
Units are primarily located in strip malls with a simple and uncluttered décor featuring clean lines and a red, yellow and blue<br />
color scheme. Roly Poly is open seven days a week for lunch and dinner offering dine-in, take-out and online ordering.<br />
Restaurants average 1,000–1,400 sq. ft. with seating for approximately 60.<br />
Roly Poly was founded in 1996 in the Buckhead section of Atlanta by Linda Wolf and Julie Reid. In 1997, the company began<br />
franchising and has maintained its franchising program as its main vehicle of growth, allowing the chain to grow from a<br />
Southeast regional concept to a national chain. The company has not disclosed any current expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Roly Poly is open for lunch and dinner featuring over 50 rolled sandwiches made with over 100 fillings such as meats,<br />
cheeses, fresh vegetables and spreads rolled in a 12-inch flour tortilla. Signature items include the French Twist, Basil Cashew<br />
Chicken and Hot Honey wraps. Other menu items include salads, such as Walnut Spinach, Brown Derby and Chipotle Caesar;<br />
and soups, such as Harvest Mushroom, Roasted Garlic Tomato and Old Fashioned Chicken Noodle. The menu also features<br />
a kids’ menu—listing Peanut Butter & Jelly and Grilled Cheese wraps— as well as vegetarian and “Roll Your Own” options.<br />
Beverages include bottled water and Coca-Cola products. Freshly baked cookies round out the menu. <strong>Menu</strong> prices range from<br />
$1.25–$6.25. Checks average $8.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
556
Personnel |<br />
Jane Ferguson, Director of Operations<br />
Linda Wolf, President<br />
News & Other |<br />
Roly Poly has changed its logo from “Roly Poly: Sandwiches, Soups & Salads” with a blue background to “Roly Poly: Purveyor<br />
of Fine Sandwiches, Soups & Salads” with a white background. (Company Website 3/27/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
557
Romano's Macaroni Grill<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972)980-9917 Fax: (972)770-9593<br />
www.macaronigrill.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 770,000 755,476 711,515<br />
Company-owned ($000) 737,000 729,717 703,663<br />
Franchised ($000) 33,000 25,759 7,852<br />
U.S. Number of Units 237 230 219<br />
Company-owned 224 223 214<br />
Franchised 13 7 5<br />
International Sales ($000) 13,000 26,904 22,644<br />
International Units 1 8 8<br />
Average Sales/Unit ($000) 3,300 3,300 3,300<br />
Concept Positioning |<br />
Romano's Macaroni Grill, a casual-dining Italian concept, is a Brinker International operation specializing in traditional Italian<br />
fare, including signature pasta dishes, grilled entrées, seafood, salads and pizza. The concept has built its reputation on its<br />
high quality, chef-prepared meals and warm, knowledgeable service. Brinker International runs more than 225 Romano<br />
Macaroni Grill restaurants nationwide.<br />
Romano's Macaroni Grill has the ambience of an old-world Tuscan trattoria. Units feature stone arches, festive string lights,<br />
large vases of fresh flowers and opera-singing servers as well as an exhibition cooking area. Generally, freestanding units<br />
measure 6,800–7,600 sq. ft. and seat 250–275. In addition, Romano’s offers delivery service through the Home Delivery<br />
Network as well as a To Go service, with servers delivering orders to customers’ cars.<br />
Founded by Phil Romano, the developer of the Fuddruckers concept, the first unit opened in the late 1980s in San Antonio. In<br />
1989, Brinker International acquired the operation from Romano for 152,000 shares of stock (valued at some $4.5 million). The<br />
founder has maintained a tie to Brinker and has worked on developing additional concepts with Brinker. Romano's Macaroni<br />
Grill has partnered with HMSHost to open an airport location at Orlando International Airport, the first nontraditional location for<br />
the chain.<br />
<strong>Menu</strong> Positioning |<br />
Romano's Macaroni Grill offers an Italian-inspired menu for lunch and dinner including pizzas, pastas, seafood and chicken.<br />
To reflect the seasons, its core menu is changed four times a year, offering lighter fare in summer months and heartier, more<br />
highly seasoned fare in the winter. Signature items include BBQ Chicken Pizza, Chicken Scaloppine, Shrimp Portofino, Penne<br />
Rustica and Lobster Ravioli. Healthy options, such as the Simple Salmon, Pollo Magro (“Skinny Chicken") and Chicken<br />
Toscana, are also offered. Desserts include tiramisu, chocolate cake, New York cheesecake and Italian sorbetto. The kids’<br />
menu offers Chicken Fingerias, Mona Lisa's Masterpizza and Crunchin' Corn Dog. Full liquor service is available, accounting<br />
for approximately 12% of sales. <strong>Menu</strong> prices range from $5.99–$16.99 and checks average $14.75.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
558
<strong>Menu</strong> Development |<br />
Romano’s Macaroni Grill is offering Trio Milano for a limited time. The meal features Pasta Milano, grilled chicken and sundried<br />
tomatoes in a roasted garlic cream sauce, with a Caesar Salad and Smothered Chocolate Cake. (Company Website)<br />
Romano’s Macaroni Grill debuted two new desserts, Italian Sorbetto and Amaretto Apple Crispetti. The Italian Sorbetto<br />
features Italian raspberry and lemon sorbets mixed with fruit juice, served in a martini glass with almond biscotti. The Amaretto<br />
Apple Crispetti consists of apples with brown sugar, baked under an almond crisp top and served with vanilla ice cream and<br />
caramel sauce. (Company Website)<br />
Romano’s Macaroni Grill debuted two new Over-Stuffed Ravioli dishes: Chicken Marsala Ravioli stuffed with fresh chicken,<br />
Parmesan and sautéed with asparagus, mushrooms and smoked prosciutto, and Ravioli Di Mare, filled with lobster, shrimp<br />
and scallops and tossed in a lemon butter sauce. (Company Release 5/03/07)<br />
Romano’s Macaroni Grill added Crab-Stuffed Mushrooms and Parmesan Crusted Artichoke Cakes to its menu. The Crab-<br />
Stuffed Mushrooms are filled with crab and Italian seasonings and then baked until golden brown. The Parmesan Crusted<br />
Artichoke Cakes include marinated artichokes and diced tomatoes and are topped with basil pesto aïoli and pizzaiola sauce.<br />
(Company Website)<br />
Romano’s Macaroni Grill added Vodka Rustic, with penne, grilled chicken and smoked Prosciutto in a tomato-cream sauce,<br />
prepared with a touch of SKYY vodka and then covered with a layer of Parmesan cheese and baked; and Chicken Sorrentino,<br />
with capellini pasta, arugula, oven-roasted Roma tomatoes and fresh buffalo mozzarella, served with chicken covered in a<br />
honey balsamic glaze. (Company Website)<br />
Romano’s Macaroni Grill added a Sangria Martini prepared with red or white wine, Absolut peach vodka and a dash of Sprite.<br />
(Company Website)<br />
Romano’s Macaroni Grill added Italian Sorbetto to its menu. The item features imported Italian raspberry and lemon sorbet<br />
topped with crisp almond biscotti. (Company Website)<br />
Romano’s Macaroni Grill added two new Sizzling Sensations entrées: Sizzling Shrimp Scampi, shrimp in garlic, lemon butter<br />
and white wine paired with red and green bell peppers and tomatoes; and Sizzling Tuscan Chicken, seasoned in garlic white<br />
wine sauce with red and green bell peppers, mushrooms and tomatoes. Both items are served over linguine. (Company<br />
Website)<br />
Tableside preparation is a unique way to introduce menu additions. Theatrical, customer-friendly presentations are increasing<br />
at both major chains and independents, encouraging a more interactive experience among diners, servers and chefs. At The<br />
Willard Room, a fine-dining concept in Washington, D.C., guests are treated to tableside preparation of salads, smoked<br />
organic salmon with capers, egg and blinis right in front of the customer before serving. Cherries Jubilee and Bananas Foster<br />
are flambéed tableside for dessert. At El Torito and El Torito Grill, guacamole is mixed at the table. Romano’s Macaroni Grill is<br />
promoting two new dishes with table service included. Its two new linguine dishes, Sizzling Shrimp Scampi and Sizzling<br />
Tuscan Chicken, feature hot garlic-white wine sauces that servers pour directly out of hot sauté pans at the table. (Nation’s<br />
Restaurant News 7/23/07)<br />
Romano’s Macaroni Grill introduced Layers & Layers of Lasagna, with nine layers of seasoned beef, spicy Italian sausage and<br />
pepperoni layered between Parmesan, mozzarella and provolone cheeses. (Company Website)<br />
Franchise Activity |<br />
Brinker International Inc. inked a deal with Pasta Ventures LLC to open three Romano’s Macaroni Grills in southern Texas.<br />
McAllen, TX-based Pasta Ventures is set to open the restaurants by 2010. Brinker is planning to expand domestic and<br />
international franchise ownership of its stores to 30% this year from the current 20%. (NRN Daily NewsFax 2/26/07;<br />
Foodservice Equipment & Supplies 2/28/07)<br />
Romano’s Macaroni Grill signed an agreement with Duke Investments LLC calling for two Romano’s units in Alaska, the<br />
chain’s first in the state. The restaurants are slated to open by 2010. (Company Release 10/12/07)<br />
Brinker International is expanding into the Alaskan market with a franchise agreement to develop the first two Romano’s<br />
Macaroni Grill restaurants in that state. Anchorage-based Duke Investments LLC will open the restaurants by 2010 at<br />
undisclosed locations. Duke already operates two of Brinker’s Chili’s Grill & Bar restaurants in Alaska. (The Dallas Morning<br />
News Online 10/12/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
559
Personnel |<br />
Theodore G. Croft, V.P. of Finance<br />
John Reale, COO<br />
Jean M. Birch, President<br />
Rebeca M. Johnson, CMO<br />
Dale A. Goss, V.P. of Development<br />
News & Other |<br />
Romano’s Macaroni Grill reported October same-store sales fell 4.3%. (Company Release 11/8/06)<br />
Romano’s Macaroni Grill reported November same-store sales fell 6.2%. (NRN Daily NewsFax 12/8/06)<br />
Romano’s Macaroni Grill reported January same-store sales declined 3.9%. (NRN Daily NewsFax 2/8/07)<br />
Brinker International Inc. reported February same-store sales declined 5.1% at Chili’s Grill & Bar, 4.1% at Romano’s Macaroni<br />
Grill, 4.1% at Maggiano’s Little Italy and 5.5% at On The Border. (NRN Daily NewsFax 3/8/07)<br />
Romano’s Macaroni Grill made a $100,000 donation to the Meals on Wheels Association of America. After the event,<br />
Romano’s President and Chief Executive hand-delivered meals to Dallas seniors. (Nation’s Restaurant News 5/21/07 p30)<br />
Brinker International Inc. reported May same-store sales fell 3% at Chili’s, 4.2% at On The Border, 2.1% at Romano’s<br />
Macaroni Grill and 1.5% at Maggiano’s. In addition, stock shares fell 70¢ to close at $32.34. (Associated Press 6/6/07)<br />
Romano’s Macaroni Grill owner Brinker International Inc. is exploring the sale of the chain after flat or declining sales<br />
compared to year-before figures for every month in the 2007 fiscal year. The restaurant was created in 1988 by Phil Romano<br />
and purchased by Brinker in 1989. There are approximately 240 franchised and company-owned Macaroni Grills worldwide,<br />
making it Brinker’s second largest brand behind Chili’s. (The Dallas Morning News 8/8/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
560
Round Table Pizza<br />
Headquarters<br />
1320 Willow Pass Road Suite 600, Concord, California 94520 USA<br />
Tel: (925)969-3900 Fax: (925)969-3978<br />
www.roundtablepizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 425,000 405,000 390,000<br />
Company-owned ($000) 110,000 95,000 90,300<br />
Franchised ($000) 315,000 310,000 299,700<br />
U.S. Number of Units 501 497 487<br />
Company-owned 131 127 121<br />
Franchised 370 370 366<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 835 820 801<br />
Concept Positioning |<br />
Round Table Pizza, Inc. is a full-service casual-dining pizza chain emphasizing quick and friendly service in neighborhoodstyle<br />
restaurants. The company markets to families and young adults who enjoy dining in a light and cheerful atmosphere. The<br />
privately held 500-unit chain serves pizza, sandwiches, salads and appetizers.<br />
Most units are located in shopping centers, but a few are freestanding. Unit size ranges from 2,400–4,000 sq. ft. with seating<br />
for 55–144. More than 80% of restaurants offer delivery. Emphasis is placed on encouraging local community involvement,<br />
which is facilitated by the banquet room capacity available at most units. Many of these banquet rooms feature large-screen<br />
TVs so, for example, a local sports team can view videotapes of its performance while dining. In addition, units offer a number<br />
of electronic games for children.<br />
Round Table Pizza was founded by Bill Larson in 1959 in Menlo Park, CA, and began franchising in 1962. In 1979, it was<br />
acquired by a group of six businessmen. In 1992, the company was sold to its employees, who currently own the private<br />
company. The company has not disclosed future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Round Table Pizza features freshly prepared appetizers, salads, pizzas and gourmet sandwiches for lunch and dinner.<br />
Signature items include the Garlic Parmesan Twists appetizer, the Create-Your-Own Pizza option using any of 30 toppings,<br />
King Arthur's Supreme Pizza and a gourmet veggie pizza. Another favorite selection is the Pepperoni Artisan Pizza, featuring<br />
a 100% organic tomato sauce on an extra-thin cornmeal crust. A choice of thin or pan crust is offered. Sauces include both<br />
white and tomato-based versions. Some locations offer pizza by the slice. Gourmet sandwiches made with chicken, ham or<br />
turkey are also available. The kids’ meal includes a one-topping personal pizza and a small soft drink for $4.49. Alcoholic<br />
beverages are not available. <strong>Menu</strong> prices range from $1.59-$21.99 and checks average $8.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
561
<strong>Menu</strong> Development |<br />
Round Table Pizza added a Pepperoni Artisan Pizza, featuring fresh mozzarella, organic tomato sauce, Primo pepperoni,<br />
marinated roasted tomatoes, caramelized onions, fresh basil and Roma tomatoes on a thin, crisp, cornmeal-dusted crust.<br />
(Company Website)<br />
Round Table Pizza introduced its new Pepperoni Artisan Pizza. The new pizza features 100% organic tomato sauce on an<br />
extra thin cornmeal dusted crust topped with lean Primo pepperoni, roasted and caramelized veggies, basil and mozzarella.<br />
(Company Web site 11/16/06)<br />
Round Table Pizza premiered the Primo Supremo Pizza at participating locations. The new pizza features three kinds of<br />
pepperoni, including some mixed into the crust, as well as onions, Roma tomatoes and shredded Parmesan. Prices vary, but a<br />
large Primo Supremo costs approximately $20.99. (Nation’s Restaurant News Online 9/6/07)<br />
Personnel |<br />
Eric Coolbauth, Director of Marketing<br />
J. Robert McCourt, CEO<br />
Keith Davis, CFO<br />
J. Robert McCourt, COO<br />
Michele Hennessey, Director of Product Development<br />
Round Table Pizza’s founder, Bill Larson, passed away from cancer on November 14. (Mercurynews.com 11/17/06)<br />
News & Other |<br />
Round Table Pizza and Siltanen & Partners have parted ways after seven years of Siltanen handling Round Table’s $15<br />
million ad account. Round Table Pizza is now in the process of choosing among three companies to take over media<br />
responsibilities, including Maiden Lane, R/West and WongDoody. All three are independent shops. (Adweek 6/4/07 p24)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
562
Roy Rogers Restaurants<br />
Headquarters<br />
321 Ballengers Center Drive Suite 201, Frederick, Maryland 21703 USA<br />
Tel: (301)695-8563 Fax: (301)695-5066<br />
www.royrogersrestaurants.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 89,000 87,899 96,376<br />
Company-owned ($000) 22,000 21,189 20,075<br />
Franchised ($000) 67,000 66,710 76,301<br />
U.S. Number of Units 54 54 56<br />
Company-owned 15 15 15<br />
Franchised 39 39 41<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,685 1,628 1,721<br />
Concept Positioning |<br />
Roy Rogers operates limited-service sandwich restaurants. The privately held chain boasts an atmosphere that is comfortable<br />
and enjoyable while offering an appealing choice of menu items that are a “cut above”. The focus is on quality, variety, choice<br />
and targeted primarily for an adult audience. More than a dozen Roy Rogers Restaurant are company-owned with 85% of its<br />
stores franchised. Roy Rogers Restaurants are located in nine different states throughout the Mid-Atlantic region.<br />
Most locations are in freestanding buildings in metropolitan areas. Units average 1,500–2,000 sq. ft. and seat 25–50 patrons.<br />
Décor features Western themes; the chain chose famed Hollywood actor cowboy Roy Rogers as their namesake due to the<br />
wholesome image he personified. Locations have dine-in as well as drive-thru service.<br />
In 1968, Marriott Corp. opened the first Roy Rogers in Falls Church, VA. By 1990, the company had expanded to 650 locations<br />
in the Northeast and Mid-Atlantic states. That same year, Marriott sold Roy Rogers to Hardee's for $365 million. The new<br />
owner then converted 220 Roy Rogers restaurants to Hardee's. It later sold 94 Roy Rogers stores to Boston Chicken and 90<br />
company-owned stores to Wendy's. By the end of the decade, Hardee's had sold 184 Roy Rogers restaurants to McDonald's,<br />
leaving only 13 Roy Rogers franchises in operation. Plamondon Enterprises acquired several Roy Rogers franchises in 1997.<br />
That same year, CKE Restaurants acquired Hardee's and subsequently sold Roy Roger's trademark rights to Plamondon<br />
Enterprises (as Roy Rogers Franchise Company LLC). In 2002, the Plamondon family acquired the Roy Rogers trademark<br />
and franchising rights from Imasco. In 2005, Roy Rogers announced a deal with two franchisees to open 100 new units in the<br />
Washington, DC, and Baltimore metropolitan area by 2010.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
563
<strong>Menu</strong> Positioning |<br />
Roy Roger's Restaurants features breakfast, lunch and dinner menus. Breakfast items include the Egg Platter, Western Platter<br />
and Biscuit & Gravy Platter and sides dishes such as breakfast fries, cinnamon rolls and fresh fruit salad. For lunch and<br />
dinner, the menu features chicken tenders and sandwiches. Signature items include the 12-Piece Chicken Tenders, Double R<br />
Bar Burger, Roy's Gold Rush Chicken Sandwich and Grilled Chicken sandwich. Side dishes include coleslaw, mashed<br />
potatoes, baked potatoes, french fries, baked beans, fresh salads and baked apples. A "Fixin's Bar" allows customers to top<br />
their sandwiches with lettuce, tomatoes, pickles, onions and condiments. A kids' menu is also available for lunch and dinner<br />
and features hamburgers, drumsticks, and chicken tenders. Desserts include Hot Fudge Brownie Sundae, Strawberry<br />
Shortcake and Uncle Ralph's Brownie. <strong>Menu</strong> prices range from $3.03–$21.03. Checks average $6.16.<br />
Personnel |<br />
Jim Plamondon, President<br />
Peter, Jr. Plamondon, President<br />
Ally Sirbaugh, Marketing Specialist<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
564
Roy's Restaurants<br />
Headquarters<br />
2202 N. Westshore Blvd 5th FL, Tampa, Florida 33607 USA<br />
Tel: (813)282-1225 Fax: (813)282-1209<br />
www.roysrestaurant.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 125,000 110,105 93,000<br />
Company-owned ($000) 90,000 75,405 93,000<br />
Franchised ($000) 35,000 34,700 -<br />
U.S. Number of Units 31 28 25<br />
Company-owned 23 20 25<br />
Franchised 8 8 -<br />
International Sales ($000) 11,000 11,000 -<br />
International Units 3 3 -<br />
Average Sales/Unit ($000) 4,200 4,200 4,200<br />
Concept Positioning |<br />
Roy's Restaurant positions itself as a high-end, full-service seafood restaurant, specializing in Hawaiian-fusion cuisine. The<br />
menu is noted for its combination of exotic flavors mixed with fresh local ingredients. Roy's also prides itself on its extensive<br />
wine list, wide array of specialty cocktails. The chain is distinguished by its use of flavorful sauces, made onsite as a<br />
complement to its signature entrées. OSI Restaurant Partners Inc. operates 20 Roy’s units; the rest are operated by Chef Roy<br />
Yamaguchi, founder of the concept.<br />
Units are freestanding and average approximately 4,000 sq. ft. with seating for 300 guests. The décor of Roy's is<br />
contemporary and upscale, with an exhibition kitchen finished in stainless steel and copper accents as the premier focal point.<br />
Dining areas are spacious, comfortably lit and elegant with white-clothed tables and soft seating. Guests can also sit alongside<br />
the open kitchen area, on high stools at a long counter, watching the chefs at work. Additional seating is also available in<br />
separate lounge areas, as well as outdoors at most Roy’s sites, which are typically situated in downtown areas of major cities.<br />
Restaurants are generally open for dinner only.<br />
General Managers of Roy's restaurant are required to purchase a 6% interest in the restaurant he or she manages for $25,000<br />
and is further required to enter into a five-year employment agreement. The chef is also entered into a five-year agreement,<br />
though he or she only has to purchase a 5% interest for $15,000. Through this level of financial and time commitment, the<br />
company has been able to attract and retain quality managers and chefs.<br />
Roy's was founded by Chef Roy Yamaguchi in 1988 in Honolulu, HI. In 1999, Outback Steakhouse, Inc., through OS Pacific,<br />
Inc., agreed to develop and operate future Roy's worldwide. Currently Roy's units are located throughout the U.S., Japan and<br />
Guam. In 2006, Outback Steakhouse announced a company name change to OSI Restaurant Partners Inc. No long-term<br />
expansion plans have been disclosed.<br />
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565
<strong>Menu</strong> Positioning |<br />
Roy's is open daily for dinner only. Its eclectic menu showcases Hawaiian Fusion—a preparation technique that highlights an<br />
exotic mix of spices and flavors, emphasizing the traditional cuisine of Hawaii with Asian accents. Entrées are prepared with<br />
seafood, beef, short ribs, pork, lamb and chicken. Signature items include appetizers such as Lakanilau Roll, Roy's Classic<br />
Yellowfin Ahi Poke and Sashimi Sampler. Other popular options include the Maui Wowie Shrimp salad, Hibachi Style Grilled<br />
Salmon, Mongolian Grilled Colorado Rack of Lamb and Kalbi Marinated Flank Steak & Scallion Ginger Crusted Tiger Shrimp.<br />
Nearly all of its entrées are accompanied by housemade sauces that enhance the flavor of each dish. Desserts include Roy's<br />
Melting Hot Chocolate Souffle, its trademark dessert offering. Full liquor service is available, including a broad cocktail menu<br />
and extensive wine selection. <strong>Menu</strong> prices range from $7.00–$38.00. Checks average $45.<br />
<strong>Menu</strong> Development |<br />
Roy’s Restaurants have added Roy’s Classic Trio, an appetizer featuring hibachi-grilled salmon with citrusponzu sauce; Roy’s<br />
Original Blackened Island Ahi with spicy soy-mustard-butter sauce; and Hawaiian-Style Misoyaki Butterfish with sizzling soy<br />
vinaigrette. (Restaurants & Institutions 11/06 p20)<br />
Kids’ menus are becoming more sophisticated to cater to young people’s more discerning palates as well as adults looking for<br />
comfort food. At select Roy’s Restaurant locations, the kids’ menu includes sushi. At one location in New York City, the menu<br />
offers a three-course children’s meal ($12) featuring a choice of one of five entrées as well as a sundae. The courses include<br />
sushi, teriyaki-glazed salmon with steamed vegetables, braised short ribs with mashed potatoes and penne with a cheesebutter<br />
sauce. At Viand in Chicago, Chef Steve Chiappetti prepares peanut butter and jelly sandwiches, with the choice of three<br />
kinds of jelly and smooth or chunky peanut butter; fries prepared from celery coated in a tempura batter; fish and chips in a<br />
fish-shaped wire basket; and a junk-food cart with housemade versions of Twinkies, Sno Balls and Oreos. Friendly’s<br />
Restaurants relied on a panel of advice from young adults to help develop its kids’ menu. The chain did not reveal specific<br />
items but did say that new offerings would include more ethnic items, such as salsa. (Nation’s Restaurant News Online<br />
6/11/07)<br />
Personnel |<br />
Richard Renninger, S.V.P. of Real Estate & Development<br />
A. William, III Allen, CEO<br />
Dirk A. Montgomery, CFO<br />
Irene Wenzel, V.P. of Purchasing<br />
Paul Avery, COO<br />
News & Other |<br />
Lee Roy Selmon’s, a five-unit casual-dining dinnerhouse concept, is expanding in Florida with a planned opening in East<br />
Manatee, FL, in January 2007. Named for former Tampa Bay Buccaneers football player Lee Roy Selmon, the restaurant<br />
features home-style American fare such as barbecue, fried green tomatoes and other Southern-influenced favorites. Floridabased<br />
Lee Roy Selmon’s is part of the OSI Restaurant Partners Inc. group of restaurant brands that includes Outback<br />
Steakhouse, Roy’s and Bonefish Grill. (Bradenton Herald.com, 10/25/06)<br />
Roy’s reported for the fourth quarter ended December 31 same-store sales increased 0.2%. (Company Release 2/1/07)<br />
OSI Restaurant Partners Inc. reported for the quarter ended March 31 same-store sales system-wide declined 0.5% at<br />
Outback Steakhouse, 1.3% at Carrabba’s Italian Grills, 0.7% at Bonefish Grills, 2.1% at Roy’s and rose 3.3% at Fleming’s<br />
Prime Steakhouse and Wine Bars. For the five weeks ended March 31, same-store sales system-wide fell 0.1% at Outback<br />
Steakhouse, 0.7% at Carrabba’s Italian Grills, 1% at Bonefish Grills, and 1.6% at Roy’s, and grew 0.7% at Fleming’s Prime<br />
Steakhouse and Wine Bars. (Company Release 4/5/07)<br />
OSI Restaurant Partners Inc. reported April same-store sales grew 1% at Outback Steakhouse, 1.1% at Carrabba’s Italian<br />
Grill, 1.9% at Fleming’s Prime Steakhouse & Wine Bar, 0.7% at Bonefish Grill and 0.8% at Roy’s. (NRN Daily NewsFax<br />
5/4/07)<br />
OSI Restaurant Partners Inc. reported May same-store sales declined 1.4% at Outback Steakhouse, 2.1% at Carrabba’s<br />
Italian Grill, 2.0% at Bonefish Grill and 0.9% at Roy’s. Fleming’s Prime Steakhouse and Wine Bars’ same-store sales rose<br />
1.2%. (Associated Press 5/30/07)<br />
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566
OSI Restaurant Partners Inc. intends to sell its Roy’s Restaurant chain and other holdings that lack the potential to become<br />
major businesses, according to board chairman Chris Sullivan. The announcement comes amid speculation that OSI would<br />
sell its smaller chains since it assumed roughly $2.4 billion in debt to fund a $3.2 billion leveraged buyout in June. The<br />
company had not previously confirmed or denied the speculation. (NRN.com 11/29/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
567
Rubio's Fresh Mexican Grill<br />
Headquarters<br />
1902 Wright Pl. Suite 300, Carlsbad, California 92008 USA<br />
Tel: (760)929-8226 Fax: (760)929-8203<br />
www.rubios.com<br />
Ownership: Public<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 154,995 143,888 141,897<br />
Company-owned ($000) 151,995 140,496 137,197<br />
Franchised ($000) 3,000 3,392 4,700<br />
U.S. Number of Units 166 154 152<br />
Company-owned 162 149 147<br />
Franchised 4 5 5<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 980 957 942<br />
Concept Positioning |<br />
Defined as "freshly made Mexican," Rubio's Fresh Mexican Grill is a limited-service restaurant that is home to the fish taco,<br />
inspired by the cuisine of the Gulf Coast of Baja, Mexico. The concept also pays special attention to its health-conscious<br />
consumers with numerous items that have no more than 25% of calories from fat. In addition, all items are made-to-order and<br />
much of the preparation is done on-premise each day including the making of its salsas, rice and guacamole. Rubio’s Fresh<br />
Mexican Grill is a privately held company based in Carlsbad, CA.<br />
Units, open from 10:30 a.m. to 11 p.m. (later on weekends), are typically 2,200 sq. ft. and seat 50–60 guests. Most are located<br />
in high profile, high traffic areas as endcap or inline sites. They are decorated with contemporary Baja accents such as colorful<br />
tile tabletops, tropical plants, surf boards and saltwater fish tanks as well as outdoor patios with palm-thatched umbrellas or<br />
palapas.<br />
Following a trip to Baja, Mexico in 1978, Ralph Rubio persuaded his father, Raphael, to join him in launching the concept,<br />
originally known as Rubio's Fish Tacos. At the end of 1995, it was estimated the company had sold almost 16 million of its fish<br />
tacos. In early 1997, the company began a program to broaden the concept and changed its brand name from Rubio’s Fish<br />
Tacos to Rubio’s Baja Grill. In mid-1999, the company completed an initial public offering. In late 2000, the company began its<br />
franchising program with the signing of an eight-unit agreement with S&A Enterprises for the Portland, OR, market. More<br />
recently, the concept has licensing agreements with several operators and has locations in venues such as QUALCOMM<br />
Stadium, Petco Park Stadium, San Diego International Airport and Del Mar Thoroughbred Club. In 2006, the company<br />
launched the first of two arena-based locations inside Arrowhead Pond of Anaheim. Since 2004, the chain has operated as<br />
Rubio's Fresh Mexican Grill, changing its name from Rubio’s Baja Grill. Future expansion plans have not been disclosed.<br />
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published.<br />
568
<strong>Menu</strong> Positioning |<br />
Rubio's Fresh Mexican Grill features salads and bowls, tacos, burritos and quesadillas. Signature items include its “World<br />
Famous Fish Taco,” a taco containing pieces of beer battered and fried white fish with shredded cabbage, fresh salsa and<br />
yogurt-mayonnaise sauce with a squeeze of lime in a soft corn tortilla. Other popular items are the Chicken Grande Bowl, Baja<br />
Grilled Burrito, 3-Cheese Quesadilla and Pork Carnitas "Street" Tacos. Healthy options include HealthMex Burrito, HealthMex<br />
Chicken Salad and Low Carb Chicken Salad. Sides include rice, beans or chips, and fresh guacamole, cheese or sour cream.<br />
Kids’ meals include Two Chicken Taquitos or Bean & Cheese Burrito. Most units also feature domestic and Mexican beers.<br />
<strong>Menu</strong> prices range from $1.19–$6.99. Checks average $8.37.<br />
Promotion Plans |<br />
Rubio’s Fresh Mexican Grill offered langostino lobster tacos and burritos to its Beach Club members only from August 24–27.<br />
The taco was priced at $3.99, the burrito at $7.99, and a two-taco plate at $8.99. (Company Website 8/24/07)<br />
Rubio’s Fresh Mexican Grill will celebrate the September 20 opening of its new location in Chandler, TX, by offering a free<br />
meal every week for a year. The unit, located at Crossroads Towne Center, is the chain’s third in Chandler. (Azcentral.com<br />
9/17/07)<br />
<strong>Menu</strong> Development |<br />
Rubio’s Fresh Mexican Grill will complete its switch to a zero-trans-fat canola oil in all of its locations by mid-August. The<br />
canola oil was chosen because it enhanced the flavor and quality of items cooked with it, especially the chain’s signature Fish<br />
Taco. (Company Release 7/9/07)<br />
Personnel |<br />
Daniel E. Pittard, CEO<br />
Frank Henigman, CFO<br />
Lawrence A. Rusinko, V.P. of Marketing<br />
Carl Arena, V.P. of Development<br />
Rubio’s Restaurants Inc.’s Chief Financial Officer John Fuller resigned on May 18 in order to head the financial team at JC<br />
Resorts. Rubio’s Controller, Frank Henigman, will serve as Chief Financial Officer until a search for Fuller’s replacement is<br />
completed. (Nation’s Restaurant News 5/14/07 p48)<br />
Rubio’s Restaurants Inc. hired Frank Henigman as Chief Financial Officer. Henigman served as acting Chief Financial Officer<br />
for the company since April, when John Fuller resigned. Previously, Henigman served as Rubio’s Controller. (NRN Daily<br />
NewsFax 6/13/07)<br />
News & Other |<br />
Rubio’s Restaurants Inc. reported for the third quarter ended September 24 net earnings decreased 27.7% to $6 million from<br />
$8.3 million for the same period last year. Revenues increased 6.1% to 38.8 million from $36.5 million. Same-store sales grew<br />
1.8%. (Company Release 11/1/06)<br />
Rubio’s Restaurants Inc. reported for the fourth quarter ended December 31 revenues increased 19.7% to $41.3 million from<br />
$34.5 million for the same period last year. Same-store sales rose 4.9%. (Company Release 1/22/07)<br />
Rubio’s Restaurants’ board of directors on July 25 approved a stock option grant to the company’s CEO, Frank Henigman, to<br />
purchase 40,000 shares of stock. The option is subject to the company’s stock incentive plan and expires upon Henigman’s<br />
resignation or on the 10th anniversary of the grant. (Company Release 7/31/07)<br />
Rubio’s Restaurants Inc. reported for the second quarter ended July 1 net earnings increased 14.6% to $5.0 million from $4.4<br />
million for the same period last year. Revenues grew 15.9% to $43.0 million from $37.2 million. Same-store sales increased<br />
7.8%. (Company Release 8/8/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
569
Ruby Tuesday<br />
Headquarters<br />
150 W. Church Ave., Maryville, Tennessee 37801 USA<br />
Tel: (865)379-5700 Fax: (865)379-6817<br />
www.rubytuesday.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 1,755,000 1,539,587 1,475,638<br />
Company-owned ($000) 1,365,000 1,172,947 1,054,000<br />
Franchised ($000) 390,000 366,640 421,638<br />
U.S. Number of Units 877 805 730<br />
Company-owned 673 609 544<br />
Franchised 204 196 186<br />
International Sales ($000) 55,000 50,699 44,042<br />
International Units 49 44 36<br />
Average Sales/Unit ($000) 2,100 2,100 2,200<br />
Concept Positioning |<br />
Ruby Tuesday is a chain of full-service casual-dining restaurants featuring a varied menu, including gourmet hamburgers. The<br />
publicly held chain operates 926 units worldwide, 877 of them in the U.S. and 204 of them franchised.<br />
Until recently, most units were in shopping malls. However, Ruby Tuesday has adjusted its strategy to include development of<br />
freestanding locations. The company has been focusing on a new cost-efficient 5,600-sq.-ft., 222-seat unit prototype. Existing<br />
locations range in size from 4,600 to 7,000 sq. ft., with seating for 162–300 guests. Although there is no standard décor, a<br />
characteristic blending of contemporary and nostalgic themes is achieved through an emphasis on greenery, stained and<br />
leaded glass, real wood paneling, polished brass, antiques, Tiffany-style lamps and memorabilia. Some form of red and white<br />
canopy usually marks the entrance. Exteriors of freestanding units feature a gold and black facade accented by red, black and<br />
yellow awnings.<br />
Ruby Tuesday was founded in 1972 when Sandy Beall, Lee Wallace and Robert McClenegan opened the first unit on the<br />
campus of the University of Tennessee at Knoxville. Most growth has taken place since 1978. Morrison, Inc., acquired the<br />
company in 1982. In 1996, Morrison split into three separate public companies and the restaurant holdings became Ruby<br />
Tuesday, Inc. Franchising began in 1997. Expansion plans are focused primarily on the East Coast, though 15 new<br />
restaurants are scheduled for Southern California. In the Middle East, the company operates units in Kuwait and has signed<br />
franchise agreements for Saudi Arabia and Dubai.<br />
<strong>Menu</strong> Positioning |<br />
Ruby Tuesday is open for lunch, dinner and Sunday brunch, offering burgers, fajitas, ribs, chicken, steak and seafood entrées,<br />
pasta, soups, salads, appetizers and desserts. Takeout and catering services are available. <strong>Menu</strong> highlights include the Triple<br />
Prime Burger, New Orleans Seafood, Premium Aged Prime Sirloin, Chicken Portobello and Premium Baby Back Ribs. Side<br />
items include Creamed Spinach, Baked Beans, Mashed Potatoes, French Fries and Brown Rice Pilaf. Desserts include<br />
Tallcake, Candy Bar Ice Cream Pie and Blondie. New menu additions include Buffalo Chicken Wontons, Thai Phoon Shrimp,<br />
and an enhanced burger selection including Ruby Mini Burgers and Jumbo Lump Crab Cake Burger. An expanded salad bar<br />
features more than 60 items. Alcohol service is available, including beer, wine, margaritas and other cocktails. Kids’ menu is<br />
offered. <strong>Menu</strong> prices range from $7.49–$17.99. Checks average $15.<br />
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published.<br />
570
Expansion Plans |<br />
Ruby Tuesday has increased by nine units since June, up from 926 to 935, marking 1% growth. Among the additions are<br />
entries in Oklahoma and Wisconsin. (restaurantnewsresource.com 10/31/07)<br />
Promotion Plans |<br />
Ruby Tuesday will lower some of its prices and offer discounts as part of a new marketing strategy. Beginning in November, its<br />
newspaper inserts will incorporate direct-mail coupons targeting those with incomes of $75,000 or higher. Ruby Tuesday has<br />
hesitated in the past to advertise promotions in newspapers because it seeks to reflect a more upscale image, but it has faced<br />
tough competition from value promotions at other casual-dining chains. The chain is also lowering some entrée prices, and<br />
decreasing the price of four appetizers from $7.49 to $6.99. Ruby Tuesday, based in Maryville, TN, operates and franchises<br />
935 restaurants nationwide. (Chain Leader Online 10/11/07; Nation’s Restaurant News 10/10/07)<br />
<strong>Menu</strong> Development |<br />
Ruby Tuesday offered its Valentine’s Dinner for Two including Spinach Artichoke Dip, Southwestern Spring Rolls, New<br />
Orleans Seafood, Shrimp Pasta Parmesan, Top Sirloin, Chicken Fresco, Chicken Oscar, Blondie and Double Chocolate Cake.<br />
The dinner is available for $34.99. (Company Release 2/12/07)<br />
Ruby Tuesday Inc. introduced a version of its salad bar as part of its catering program. The Delivered Fresh Garden Bar is<br />
similar in presentation to the salad bar inside the restaurant and offers many of the same choices. The salad bar serves up to<br />
15 people. (Company Release 2/28/07)<br />
Franchise Activity |<br />
Ruby Tuesday signed a deal with RT LA Group LLC to open 10 franchises in the Los Angeles market over the next five years.<br />
RT, the chain’s second franchisee in Southern California, was founded by Troy Saldana, a foodservice industry veteran; Rob<br />
Rittgers a real estate industry veteran; and David Fish, a veteran in the medical industry. (GlobeSt.com 2/13/07; NRN Daily<br />
NewsFax 2/14/07; Nation’s Restaurant News Online 2/13/07)<br />
Ruby Tuesday Inc. will open five franchised locations over the next five years in southern Wisconsin with RT Holdings of<br />
Southern Wisconsin LLC. The restaurants will be operated by RT Restaurants of Southern Wisconsin LLC. Ruby Tuesday will<br />
also implement a new prototype for the newly franchised locations. (Company Release 4/25/07)<br />
Ruby Tuesday Inc. entered into development agreements with five of its domestic franchisees calling for a total of 25<br />
additional Ruby Tuesday casual-dining restaurants in the next several years. The five franchisees include RT St. Louis<br />
Franchise, RT Western Missouri Franchise, RT Omaha Franchise, RT Iowa Franchise and North Dakota Cuisine. States<br />
included in the agreements are Arkansas, Iowa, Nebraska and Missouri. (Company Release 8/10/07)<br />
International Activities |<br />
Ruby Tuesday Inc. plans to open its first franchised restaurant in Guam in late 2007, developed and operated by RT<br />
Restaurants LLC. (Company Release 2/26/07)<br />
Ruby Tuesday Inc. added 25 restaurants to its Middle East development deal with Kuwait City-based National Arabic Co. for<br />
Restaurant Management. The agreement calls for the stores to open over the next seven years in Bahrain, Egypt, Jordan,<br />
Kuwait, Lebanon, Oman, Qatar, Dubai and the United Arab Emirates. There are currently four Ruby Tuesday outlets in the<br />
Middle East. (NRN Daily NewsFax 3/27/07; International Herald Tribune 3/22/07; Company Release 3/22/07)<br />
Ruby Tuesday Inc. international franchisee, United Food and Beverage Company, will develop and operate six Ruby Tuesday<br />
locations in Cairo, Egypt, over the next four years. The units will be located in high-traffic areas near the Nile River. (Company<br />
Release 9/7/07)<br />
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published.<br />
571
Technology |<br />
Ruby Tuesday is launching an ultra-secure credit card processing system that will not leave credit card information with the<br />
restaurant. The company is introducing this technology in an effort to protect customers paying with a debit or credit card. The<br />
chain expects the new system to be installed at all of its 900 restaurants this spring. In related news, Ruby Tuesday also is<br />
developing a credit card system to speed up its curbside takeout. The chain is working on a portable credit card machine that<br />
employees can bring with them to swipe customers’ cards at the car. The company plans to roll out the devices systemwide<br />
next year. (USAToday.com 3/05/07; NRN Daily NewsFax 3/07/07; Company Release 3/05/07; KnoxNews 2/28/07)<br />
Personnel |<br />
Sandy Beall, CEO/President/Chairman<br />
Cindy Monzo, Purchasing Director<br />
Margie Duffy, CFO<br />
Kimberly Grant, E.V.P. of Operations<br />
Kurt Juergens, V.P. of Development<br />
Ruby Tuesday Inc. promoted Kimberly Grant to Executive Vice President. Previously, Grant served as Senior Vice President<br />
of Operations for the company. Grant will direct the operations of more than 650 company-owned Ruby Tuesday locations<br />
across the U.S. (Company Release 4/24/07)<br />
News & Other |<br />
Ruby Tuesday Inc. reported for the second quarter ended December 5 net earnings declined 4% to $16.7 million from $17.4<br />
million for the same period last year. Revenues increased 14.2% to $336.8 million from $295 million. Same-store sales fell<br />
0.2%. (Company Release 1/9/07)<br />
Ruby Tuesday is slowing down its expansion efforts and revamping unit décor in an effort to upscale its concept. Over the next<br />
five years, the chain will gradually slow expansion to 30 new stores annually. In 2007, Ruby Tuesday expects to open 45-50<br />
company-owned units and 25-30 franchised outlets. Ruby Tuesday is also converting at least 50 stores from its bar-and-grill<br />
format to a new dinnerhouse look. To date, the company has remodeled five restaurants and built one featuring the new look.<br />
Ruby Tuesday also plans to upgrade its drink menu and add fresher, organic food as well as improve customer service.<br />
(GlobeSt.com 1/10/07)<br />
Ruby Tuesday Inc. reported for the third quarter ended March 6 net earnings fell 5% to $28.7 million from $30.2 million for the<br />
same period last year. Revenues increased 11.6% to $378 million from $339 million. Same-store sales decreased 1% and<br />
rose 1.8% at company-owned and domestic franchise restaurants. (Company Release 4/11/07)<br />
Ruby Tuesday Inc. reported that for the fourth quarter ended June 5 net earnings fell 22% to $24.7 million from $31.7 million<br />
for the same period last year. Revenues decreased 2.1% to $356.8 million from $364.3 million. Same-store sales declined<br />
3.9% at company-owned locations and 2.1% at domestic franchises. For the year ended June 5, net earnings declined 8.3% to<br />
$91.7 million from $100.1 million for 2006. Revenues increased 8.0% to $1.4 billion from $1.3 billion. (Company Release<br />
7/11/07)<br />
Ruby Tuesday Inc. reported that for the first quarter ended September 4, same-store sales at company-owned stores declined<br />
4.8%. Same-store sales at domestic franchised restaurants fell 2.9%. (Restaurantnewsresource.com 9/21/07)<br />
Ruby Tuesday Inc. purchased majority ownership of Wok Hay Fresh Asian Diner, a single-unit, fast-casual concept in<br />
Knoxville, TN, for $1 million. The company currently has no plans to expand the concept, but will spend $250,000 to remodel it<br />
into a full-service format. (NRN Daily NewsFax 10/12/07)<br />
Ruby Tuesday Director James Haslam III bought 47,370 shares of stock on October 12 for $15.72–$16.12 per share.<br />
(Associated Press 10/17/07)<br />
Ruby Tuesday is shifting focus to remodels instead of developing new units. All company-owned units and some franchised<br />
units are slated for remodeling as the company continues its rebranding process. The remodels aim to present a more upscale<br />
look, says Sandy Beall, founder and CEO. Units that have already been remodeled have seen traffic increases. As the chain<br />
focuses on remodeling existing restaurants, new company-owned units will decrease this year to between 20 and 25, down<br />
from 65 last year. (globest.com 10/16/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
572
Ruth's Chris Steak House<br />
Headquarters<br />
500 International Parkway Suite 100, Heathrow, Florida 32746 USA<br />
Tel: (407)333-7440 Fax: (407)833-9625<br />
www.ruthschris.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 456,774 389,886 354,750<br />
Company-owned ($000) 254,718 202,544 187,970<br />
Franchised ($000) 202,056 187,342 166,780<br />
U.S. Number of Units 90 82 76<br />
Company-owned 50 41 39<br />
Franchised 40 41 37<br />
International Sales ($000) 28,398 25,949 23,230<br />
International Units 10 10 10<br />
Average Sales/Unit ($000) 5,271 5,021 4,609<br />
Concept Positioning |<br />
Ruth's Chris Steak House, a privately-held chain of full-service, upscale restaurants, specializes in U.S. prime beef steaks.<br />
Restaurants serve dinner seven days a week and select locations also serve lunch. With the motto "The Home of Serious<br />
Steaks," the chain uses only corn-fed beef bred in the Midwest. Individual steaks are cut at each restaurant. Madison<br />
Dearborn Partners owns a majority stake in the company-owned chain.<br />
Restaurants are conversions of existing freestanding buildings or new construction, with several located in office buildings.<br />
Units average 4,500 sq. ft., with patron seating available for approximately 200. Interior décor changes from unit to unit, but<br />
always reflects elegance and simplicity.<br />
Ruth Fertel had two teenage sons to put through college when she mortgaged her home to get $18,000 to buy a 17-table<br />
steakhouse in 1965. She named the restaurant "Chris Steak House," which she kept until she started to expand. Fertel then<br />
decided to use the name "Ruth's Chris Steak House." In 1977, the first franchise was granted and opened in Baton Rouge, LA.<br />
A year later, the company sold its majority stake to Madison Dearborn Partners, a private equity firm. Madison Dearborn<br />
Partners, which manages $4 billion in investments, plans to increase both domestic and international growth of the chain.<br />
International expansion continued in Asian markets in 2005, with 5 franchised units in Taiwan and Hong Kong. Also in 2005,<br />
Ruth's Chris went public and is now traded on the NASDAQ. The company's current operating philosophy is to keep its growth<br />
rate manageable. In 2005, the chain expanded by two company-owned units and one franchised unit. Following this, it is no<br />
longer accepting new franchisees into its system. Ongoing expansion plans for the chain include an increased focus on<br />
Southeastern markets, including Florida, where the chain plans to expand by 11 units in 2007.<br />
<strong>Menu</strong> Positioning |<br />
Ruth's Chris Steak House features a menu for lunch and dinner that offers appetizers, soups, salads and a variety of entrées.<br />
Signature items include Petite Filet, Ribeye, New York Strip, Veal Chop with Sweet & Hot Peppers, Lamb Chops, Stuffed<br />
Chicken Breast, Salmon Filet and Fresh Lobster. Side items include mashed potatoes, baked potatoes, Sweet Potato<br />
Casserole, steak fries, fresh spinach and sautéed mushrooms. Dessert includes traditional options such as Créme Brûlèe and<br />
Warm Apple Crumb Tart. An extensive wine list is available. <strong>Menu</strong> prices range from $3.95–$30. Checks average $47–$50.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
573
Expansion Plans |<br />
Ruth’s Chris Steak House Inc. opened a new location in Huntsville, AL, on October 23. The new unit is located in the Embassy<br />
Suites & Spa. (Company Release 10/25/06)<br />
Ruth’s Chris Steak House Inc. opened its first Edmonton, Alberta, Canada restaurant on October 30. The unit is located on the<br />
main thoroughfare in the World Trade Centre. (Company Release 11/8/06)<br />
Ruth’s Chris Steak House has opened a new location in Bonita Springs/Estero, FL, on November 27. The unit is located in the<br />
Coconut Point Mall. (Company Release 11/27/06)<br />
Ruth’s Chris Steak House Inc. opened its 100th location in Providence, RI, on December 4. (Businesswire.com 12/4/06)<br />
Ruth’s Chris Steak House Inc. opened its new restaurant in Aspen, CO, on January 15. (Company Release 1/16/07)<br />
Ruth’s Chris Steak House opened a new restaurant in Lake Mary, FL. The new unit is the second to open in 2007. (Company<br />
Release 2/5/07)<br />
Ruth’s Chris Steak House Inc. opened its second restaurant in Charlotte, NC, on February 26. The new unit marks the<br />
company’s 103rd restaurant worldwide. (Company Release 2/26/07)<br />
Ruth’s Chris Steak House opened its fifth Hawaii location on Oahu on March 23. The restaurant is located at Waikiki Beach<br />
Walk. (Company Release 3/23/07)<br />
Ruth’s Chris Steak House Inc. opened its 107th restaurant in on July 1 Biloxi, MS. The company is returning to Mississippi<br />
after a 10-year absence. The unit is located in the Hard Rock Hotel & Casino and seats 223 guests. (Company Release<br />
7/2/07)<br />
Ruth’s Chris Steak House opened a unit in Knoxville, TN, on October 23. The restaurant marks the company’s 111th unit<br />
worldwide. (Company Release 10/23/07)<br />
Ruth’s Chris Steak House has opened a new unit in Tysons Corner, VA. The steak chain now has six restaurants in the<br />
Washington, DC, metropolitan area. (orlandosentinal.com 10/31/07)<br />
Ruth’s Chris Steak House opened a restaurant in Santa Barbara, CA, on November 19. The new unit is located in La Cumbre<br />
Plaza, has seating for more than 200 guests and features wines from many Santa Barbara-area boutique wineries. The<br />
opening marks Ruth’s Chris’ 13th California location and 116th worldwide. (Company release 11/19/07)<br />
<strong>Menu</strong> Development |<br />
Italian osso buco, tender, slow-cooked, beef, lamb and veal, is appearing on winter menus nationwide. At Amuse in Dallas,<br />
patrons can dine on BBQ Short Rib Osso Buco, with one pound of short ribs, roasted poblano and jalapeño peppers and<br />
chipotle chiles braised with chicken stock, brown sugar and powdered mustard. Wish in Miami Beach menus Cuban-Coffee-<br />
Braised Osso Buco, prepared by rubbing ground Cuban coffee beans and cardamom over veal shanks and then braising them<br />
in a stock of sherry wine and sweet soy sauce. The dish is served over Italian parsley risotto. At Ruth’s Chris Steak House<br />
locations, guests can feast on Veal Osso Buco Ravioli, an appetizer featuring shredded veal osso buco and fresh mozzarella<br />
cheese in a saffron-infused ravioli, topped with a white-wine demi-glace and garnished with parsley, Romano cheese and<br />
sautéed arugula. (Restaurants & Institutions 12/06 p41)<br />
Elegant steakhouses are appealing to a new clientele with revamped menus and elaborate bar décor. By broadening diningroom<br />
menus beyond steak entrées, pairing appetizers with wines by the glass, and introducing children’s menus, many finedining<br />
restaurants, including Fleming’s Prime Steakhouse & Wine Bar and Ruth’s Chris Steak House, are attracting women,<br />
young professionals and health-conscious diners who previously shied away from steakhouses. Ruth’s Chris has experienced<br />
growth after providing more flexible menu options, including smaller portions of regular menu items, along with a new design<br />
for the bar and lounge. Similarly, Fleming’s has created a more contemporary design for the chain’s bars and added a “Flights<br />
and Bites” promotion that matches three appetizers with three wines for less than $20. (Nation’s Restaurant News 9/3/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
574
Franchise Activity |<br />
Ruth’s Chris Steak House Inc. acquired three franchised outlets in Seattle and Bellevue, WA, and Portland, OR, for $13.25<br />
million. The deal gives the company control of all the West Coast restaurants and restrains the former franchise operators<br />
under non-compete agreements. According to the company, these outlets generated average annual sales of $5.3 million last<br />
year. The company believes that this agreement will open these respective markets to additional corporate-unit development.<br />
Ruth’s Chris operates and franchises 105 restaurants. (NRN Daily NewsFax 4/17/07)<br />
Ruth’s Chris Steak House opened a new franchised location in Madison, WI, on October 15. The new unit marks the<br />
company’s first in Wisconsin. (Company Release 10/15/07)<br />
Ruth’s Chris Steak House Inc. opened its first unit in Arkansas November 12. The Rogers location was opened with new<br />
franchisees David Cohn, Billy Orgel, Barry Pelts and Andy Woodman. The store marks the 115th Ruth’s Chris unit worldwide.<br />
(Restaurantnewsresource.com 11/12/07)<br />
Personnel |<br />
Damon Liever, S.V.P. of Marketing<br />
James Cannon, V.P. of Culinary Development<br />
Craig Miller, CEO<br />
Thomas J., Jr. Pennison, CFO<br />
James Cannon, V.P. of Purchasing<br />
Geoff Stiles, COO<br />
Ruth’s Chris Steak House Inc. announced its senior vice president of marketing and business development, Anthony M.<br />
Lavely, has resigned effective January 29. (Company Release 1/30/07)<br />
Ruth’s Chris Steak House hired Damon Liever as Senior Vice President of Marketing. Previously, Liever served as President<br />
of Retail Brand Group LLC, a subsidiary of Sodexho, Inc. (Publications.mediapost.com 7/18/07)<br />
News & Other |<br />
Ruth’s Chris Steak House Inc. has completed the acquisition of a three-story office building in Heathrow, FL, for $13.7 million.<br />
The company currently occupies the first floor of the building for its executive offices and support center. (Company Release<br />
12/19/06)<br />
Ruth’s Chris Steak House Inc. reported for the fourth quarter ended December 31 net earnings increased 48.5% to $80.4<br />
million. Revenues rose 44.8% to $84 million from $58 million for the same period last year. Same-store sales grew 6.2%.<br />
(NRN Daily NewsFax 1/16/07)<br />
Ruth’s Chris Steak House Inc. reported for the fourth quarter ended December 31 net earnings increased to $10.7 million from<br />
$4.3 million for the same period last year. Revenues rose 51.4% to $88 million from $58.1 million. Same-store sales grew<br />
7.4%. (Company Release 2/21/07)<br />
Ruth’s Chris Steak House reported that for the first quarter ended April 1, preliminary sales from company-owned restaurants<br />
increased 27% to $78.1 million from $61.5 million for the same period last year. Revenues rose to between $81.3 million and<br />
81.5 million from $64.7 million. Same-store sales from company-owned restaurants grew 1.9%. (Company Release 4/9/07)<br />
Ruth’s Chris Steak House Inc. reported for the first quarter ended April 1 net earnings increased 14.7% to $6.8 million from<br />
$5.9 million for the same period last year. Revenues rose 26% to $81.5 million from $64.7 million. Same-store sales grew<br />
1.9%. (Company Release 5/1/07)<br />
Ruth’s Chris Steak House reported preliminary second-quarter net earnings increased 28.4% to $73.6 million from $57.4<br />
million for the same period last year. Revenues are expected to be between $76.9 and $77.1 million, up from $60.5 million for<br />
the same period last year. Same-store sales fell 0.4%. (Company Release 7/5/07)<br />
Ruth’s Chris Steak House Inc. reported for the second quarter ended July 1 net earnings increased 11.8% to $5.4 million from<br />
$4.9 million for the same period last year. Revenues rose 29.5% to $78.4 million from $60.5 million. Same-store sales declined<br />
0.4%. (Company Release 7/31/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
575
Ruth’s Chris Steak House Inc. completed its acquisition of three formerly franchised units in Bellevue and Seattle, WA, and<br />
Portland, OR, for $13.3 million. The transaction was financed with the company’s revolving credit facility. (Company Release<br />
9/11/07)<br />
Ruth’s Chris Steak House is now open for lunch on Fridays at its Chicago location. The restaurant will be open from 11:30<br />
a.m.–2 p.m. (Company Release 9/25/07)<br />
Ruth’s Chris Steak House reported for the third quarter ended September 30 same-store sales at company-owned units<br />
declined 0.4% compared to year-before figures. Total sales at company-owned restaurant increased 20.9%. Revenues are<br />
expected to be between $70 million and $70.2 million for the third quarter. (Restaurantnewsresource.com 10/12/07)<br />
Ruth’s Chris Steak House Inc. announced a deal to purchase 19 restaurants from Cameron Mitchell Restaurants LLC. The<br />
$94 million deal, set to close in the first quarter of 2008, includes units operating under the Mitchell’s Fish Market, Columbus<br />
Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse brands. Ruth’s Chris plans to grow the Mitchell’s Fish Market<br />
brand nationally. (Nation’s Restaurant News Daily NewsFax 11/07/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
576
Ryan's Grill, Buffet & Bakery<br />
Headquarters<br />
1460 Buffet Way, Eagan, Minnesota 55121 USA<br />
Tel: (651)994-8608 Fax: (651)365-2356<br />
www.ryansrg.com/index.php<br />
Ownership: Private<br />
Segment: Limited Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 645,000 681,000 769,814<br />
Company-owned ($000) 645,000 681,000 742,015<br />
Franchised ($000) - - 27,799<br />
U.S. Number of Units 256 268 301<br />
Company-owned 256 268 294<br />
Franchised - - 7<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,460 2,395 2,457<br />
Concept Positioning |<br />
Ryan's Grill, Buffet & Bakery is a limited-service family-oriented steakhouse and buffet chain specializing in steaks, chicken,<br />
fish and ribs cooked to order over an open flame. Patrons order at the counter upon entry and serve themselves at the Mega<br />
Bar buffet. Freshly baked bread and drink refills are brought to the table. Ryan’s Restaurant Group, the parent company of<br />
Ryan’s Grill, operates more than 340 restaurants in 23 states. In 2006, Ryan's Restaurant Group merged with Buffets Holdings<br />
Inc. in a cash transaction worth approximately $876 million. Under the terms of the deal, several brands now operate under the<br />
same umbrella, including Ryan's, Fire Mountain, Old Country Buffet and HomeTown Buffet. Ryan's units are located primarily<br />
throughout the South and Midwest.<br />
Units are freestanding, generally near residential neighborhoods. The average Ryan’s Grill is 8,000–12,500 sq. ft., with seating<br />
for 300–500 in two or three dining areas. Bakery bars located in dining rooms allow customers to view preparation of freshly<br />
baked cookies, muffins, brownies and other baked goods. In addition, meats are displayed on a central bar and carved to<br />
order. The Fire Mountain concept, introduced in 2000 in 11 new and five retrofitted units, includes a glass-enclosed grill and<br />
cooking area in the dining room. Designed to be highly visible, it also has customer access to facilitate service of cooked-toorder<br />
meats. All new locations will be the Fire Mountain concept.<br />
Originally known as Ryan's Steak House, the business was incorporated in 1977 by Alvin McCall, Jr., and operations<br />
commenced in 1978. Ryan's Restaurant Group went public in 1982. Its Mega Bar was introduced in 1985 and an ice-cream<br />
bar was added in 1986.<br />
<strong>Menu</strong> Positioning |<br />
Ryan's operates an extensive buffet featuring sides, salads, desserts, chicken, pork and beef. Its signature item is the full line<br />
of USDA Choice aged grain-fed steak, grilled to order at a station near the buffet. The chain also menus charbroiled Hawaiian<br />
chicken, salmon, flounder, shrimp and hamburgers. All entrées are served with a choice of baked potato, fries or rice pilaf. The<br />
buffet offers a variety of hot meats, hot steamed vegetables, soups, hot and cold desserts, salads, cheeses, fresh fruits and<br />
hot yeast rolls made from scratch. Checks average $7.<br />
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published.<br />
577
<strong>Menu</strong> Development |<br />
Buffets, Inc. will convert all of its restaurants to zero trans fat frying oils by the end of 2007. The company operates 644<br />
restaurants in 39 states, including HomeTown Buffet, Old Country Buffet, Ryan’s, Tahoe Joe’s Famous Steakhouse and Fire<br />
Mountain. (Smart Brief Online 9/4/07; Company Release 9/4/07)<br />
Personnel |<br />
Keith Well, V.P. of Finance<br />
Michael Jr. Andrews, CEO<br />
Greg Schneider, V.P. of Purchasing<br />
Mario Lee, V.P. of Operations<br />
Karlin Linhardt, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
578
Saltgrass Steak House<br />
Headquarters<br />
1510 W. Loop South, Houston, Texas 77027 USA<br />
Tel: (713)850-1010 Fax: (713)850-7205<br />
www.saltgrass.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 130,000 126,000 120,000<br />
Company-owned ($000) 130,000 126,000 120,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 36 32 30<br />
Company-owned 36 32 30<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,700 4,150 4,125<br />
Concept Positioning |<br />
Saltgrass Steak House combines a historic Texas atmosphere with a menu of signature certified Angus beef steaks as well as<br />
chicken, seafood and pork specialties that are reminiscent of the Old Southwest. Landry’s Restaurants operates 42<br />
restaurants in seven states.<br />
Its casual interior décor features a "roadhouse" theme, complete with a fireplace and a saloon-style bar. The theme includes<br />
an extensive use of Texas artifacts and rustic materials as well as barn-wood walls with old license plates tacked to them and<br />
specially selected music and signage. Large parties can be accommodated in each unit’s private dining rooms, or on the<br />
spacious patio. Saltgrass units, which seat 275 guests and average 8,000 sq. ft., are typically freestanding and located next to<br />
major highways.<br />
Named for the historic Saltgrass Trail, which led Texas cattle from coastal salt grass lands to the markets, the first Saltgrass<br />
Steak House opened in Houston in 1990. Cliff Halphen and William Osterhout were its creators. The company also owns and<br />
operates Denis' Seafood Restaurant, acquired in early 1997 from bankruptcy. Landry's Restaurants acquired Saltgrass Steak<br />
House in 2002. In mid-2006, Landry’s retained Wachovia Securities to explore strategic alternatives for Saltgrass and Joe’s<br />
Crab Shack— the latter of which was sold in late 2006 for $192 million—in order to concentrate its focus on core brands<br />
Landry’s Seafood House, Chart House and Rainforest Café.<br />
<strong>Menu</strong> Positioning |<br />
Saltgrass Steak House presents a varied menu for lunch and dinner featuring sandwiches, burgers, chicken and seafood.<br />
Saltgrass Steak House also has 10 signature steaks, weighing between eight and 22 ounces and made with certified Angus<br />
beef seasoned with a unique seven-spice steak seasoning and topped with garlic butter (or served on the side). Each steak<br />
includes a dinner salad, Caesar salad or cup of soup and Shiner Bock Beer Bread, plus a choice of sides, such as french fries,<br />
baked potato, Romano potatoes, Garlic Mashed Potatoes, Texas rice or fresh seasonal vegetables. Additional signature items<br />
include Texas Cheesesteak Sandwich, Tenderloin Tacos, Grilled Chicken Breast & Gulf Shrimp Combo, Hickory Chicken and<br />
Grilled Fresh Salmon. A kids’ menu features BBQ Baby Back Ribs, Shrimp & Chicken Tenders and Trailride Pizza. Desserts<br />
items include Caramel Apple Pecan Pie, Margarita Pie and Brownie Super Sundae. Full liquor service is available. Checks<br />
average $15 for lunch and $19 for dinner.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
579
Personnel |<br />
Toni Niece, Director of Marketing<br />
Joe Leahy, Director of Purchasing<br />
Jefferey Cantwell, S.V.P. of Development<br />
Tilman J. Fertitta, CEO<br />
Rick Liem, CFO<br />
Richard Ervin, V.P. of Operations<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
580
Sbarro<br />
Headquarters<br />
401 Broad Hollow Rd, Melville, New York 11747 USA<br />
Tel: (631)715-4100 Fax: (631)715-4197<br />
www.sbarro.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
Chain Brands<br />
Boulder Creek Steakhouse<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 475,000 465,000 452,500<br />
Company-owned ($000) 315,000 305,000 315,000<br />
Franchised ($000) 160,000 160,000 137,500<br />
U.S. Number of Units 774 785 770<br />
Company-owned 494 495 515<br />
Franchised 280 290 255<br />
International Sales ($000) 120,000 105,000 100,000<br />
International Units 178 140 137<br />
Average Sales/Unit ($000) 620 600 595<br />
Concept Positioning |<br />
Sbarro is a limited-service Italian chain specializing in pizza, pasta, sandwiches and freshly prepared salads. The chain offers<br />
more than 200 menu items from authentic Southern Italian recipes passed down through the Sbarro family. In addition, Sbarro<br />
Inc.'s full-service casual-dining concepts operate joint-venture agreements under the following brands: Boulder Creek Steaks<br />
and Saloon, Carmela’s of Brooklyn, Rothmann’s, Burton and Doyle, Baja Grill, Vincent’s Clam Bar, Salute, Medi and Mama<br />
Sbarro’s. MidOcean Partners is the parent company of Sbarro and operates approximately 1,000 locations across 30<br />
countries.<br />
Sbarro units are located in-line with other stores in shopping malls or in mall food courts. In-line restaurants average 2,500 sq.<br />
ft. and seat approximately 60-120. Food-court outlets are 500-1,000 sq. ft. The chain has also entered a variety of<br />
nontraditional locations including airport terminals, turnpike travel plazas, hospitals, hotels, casinos and universities. Larger<br />
units offer booth and table seating in a contemporary Italian deli setting. Replicas of hanging cheeses, prosciutto, hams and<br />
other Italian specialties create a traditional ambiance.<br />
The company was founded by the Sbarro family in 1955 and incorporated in 1977. In May 1985, Sbarro made an initial public<br />
offering. In 1999, a merger with the Sbarro family was approved, taking the company private. In 2006, MidOcean Partners, a<br />
private equity firm, acquired Sbarro, Inc. for an undisclosed sum. Sbarro operates nationwide, and has also identified India as<br />
an overseas growth market. Sbarro plans to open 100 stores in India over the next decade, with its first opening scheduled for<br />
New Delhi in 2007.<br />
<strong>Menu</strong> Positioning |<br />
Sbarro offers pizza, salads and pasta in cafeteria/buffet format for lunch and dinner. Select units offer traditional breakfast<br />
items such as scrambled eggs, bacon, sausage, bagels and muffins. The chain’s signature items are its pizzas, which are<br />
primarily served by the slice and account for approximately 50% of total sales. Sicilian Pizza and Hawaiian Pizza are among<br />
the most popular menu selections. Pasta dishes include lasagna, baked ziti and Rigatoni a la Mama Sbarro. Entrées include<br />
Chicken Francese and Stuffed Eggplant. Desserts include cheesecake and carrot cake. Many larger units serve beer and<br />
wine. <strong>Menu</strong> prices range from $2.99–$5.29 and checks average $5.50.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
581
Expansion Plans |<br />
Sbarro is being sold to Midocean Partners. The cost of the transaction as well as the expected completion date were not<br />
disclosed. (NRN Daily NewsFax 11/27/06)<br />
Personnel |<br />
Giuseppe Joe Borruso, Corporate Chef<br />
Peter Beaudrault, CEO<br />
Anthony Puglisi, CFO<br />
Mike Dumelle, V.P. of Operations<br />
News & Other |<br />
Sbarro agreed to be acquired by MidOcean Partners for an undisclosed amount. MidOcean, a private-equity firm that owns<br />
Jenny Craig, said that Sbarro chief executive Peter Beaudrault and his entire management staff will remain after the deal has<br />
closed. The Italian chain has about 1,000 locations in 34 countries. (NRN Daily NewsFax 11/27/06; Company Release<br />
11/22/06)<br />
Sbarro has reported an increase in revenues to $91 million for the third quarter ended September 30, up from $79.2 million a<br />
year ago. Rising cheese costs have made it necessary for the company to control other expenses, said president and CEO<br />
Peter Beaudrault. (Food-business-review.com 11/15/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
582
Schlotzsky's<br />
Headquarters<br />
200 Glenridge Pnt Pkw Suite 200, Atlanta, Georgia 30342 USA<br />
Tel: (404)255-3250 Fax: (404)255-4978<br />
www.schlotzskys.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 220,000 225,800 270,000<br />
Company-owned ($000) 18,000 18,700 25,000<br />
Franchised ($000) 202,000 207,100 245,000<br />
U.S. Number of Units 365 378 444<br />
Company-owned 14 16 22<br />
Franchised 351 362 422<br />
International Sales ($000) - 6,600 4,500<br />
International Units - 16 15<br />
Average Sales/Unit ($000) 585 573 525<br />
Concept Positioning |<br />
Schlotzsky's is a limited-service sandwich concept open for lunch, dinner and snacks seven days a week, offering walk-up,<br />
counter and takeout service. All units display deli cases of meats, cheeses and private label Schlotzsky's products. To ensure<br />
freshness, sandwich buns and pizza crusts are baked from scratch daily in each unit. Lunch accounts for approximately 65%<br />
of sales; the rest come from the dinner daypart. Roark is parent company of FOCUS Brands Inc., which now operates as the<br />
parent company of Schlotzsky's.<br />
Since 1996, the company has focused on the development of freestanding prototypes of 3,200–3,700 sq. ft. with seating for<br />
60–80. Each prototype unit features an on-premise bakery, a drive-thru lane and many also have outdoor seating. Currently,<br />
52% of units are freestanding and 27% are end caps; new prototypes have higher than average sales. This new design<br />
features antique Chicago-style brick with extensive wood and masonry. Using old-world colors with warm and friendly textures,<br />
the new units strive for the cluttered look of an old Italian grocery store.<br />
Important to the chain are its private label products, ranging from chips, meats and cheeses to salad dressings, mustard and<br />
olive oil. Over 100 products carry the label. Some are also sold separately in stores for home consumption. In a new alliance<br />
with Wal-Mart, Schlotzsky’s brand potato chips debuted in 450 stores.<br />
Schlotzsky's first opened in Austin, TX, in 1971 and began franchising in 1977. The chain was sold in 1981 to brothers John C.<br />
and Jeffrey J. Wooley. In 1995, Schlotzsky’s, Inc. went public. Due to slumping sales and a considerable load of debt,<br />
Schlotzsky's filed for Chapter 11 bankruptcy protection in 2004. Later that year, Schlotzsky's finalized the sale of all its assets<br />
to Bobby Cox Cos. for $28.5 million. In late 2006, Atlanta-based Roark Capital Group announced its acquisition of Schlotzsky's<br />
for an undisclosed sum.<br />
<strong>Menu</strong> Positioning |<br />
Schlotzsky's varied menu includes 15 hot sandwiches, wraps, salads and pizzas. Signature items include The Original<br />
sandwich, The Philly sandwich, Asian Almond Chicken wrap, Zesty Albacore Tuna wrap, Thai Chicken pizza, Smoked Turkey<br />
Chef's Salad and Tuscan Herb pizza. Kid's meals feature a cheese pizza, cookie and drink for $2.99 or a Ham & Cheese<br />
sandwich for $2.99. Sides include potato salad and chicken salad. Desserts include cookies, cheesecake and brownies. No<br />
alcohol is served. <strong>Menu</strong> prices range from $3–$10. Checks average $7.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
583
Expansion Plans |<br />
Schlotzsky’s Deli is being acquired by Roark Capital Group. Terms of the deal were not disclosed. (NRN Daily NewsFax<br />
11/21/06)<br />
Schlotzsky’s Ltd. is planning to open 12 new units in the Houston area over the next five years. The company has already<br />
opened three Houston-area units this year. The company filed for bankruptcy and closed many of its Houston-area stores<br />
three years ago. The expansion is part of a strategy to open 50 new restaurants a year. (Bizjournals.com 7/20/07)<br />
Schlotzsky’s plans to open eight more units in Birmingham, AL, over the next five years. The company is looking for<br />
franchisees to operate the locations. The Birmingham expansion is part of a national growth strategy that includes opening 50<br />
new units each year. (Bizjournals.com 9/6/07)<br />
Schlotzsky’s plans to open four Springfield, MO, locations over the next five years. The chain is seeking new franchisees for<br />
the market, in addition to the two franchisees who operate Schlotzsky’s existing Springfield locations. (Sbj.net 9/13/07)<br />
Schlotzsky’s is planning to nearly double its number of Kansas City locations over the next five years. The chain has six<br />
locations in the Kansas City metro area and is seeking franchisees to open five more. Expansion in Kansas City is part of<br />
Schlotzsky’s national growth strategy to open 50 new restaurants a year. Atlanta-based Focus Brands operates and franchises<br />
approximately 365 Schlotzsky’s in 35 states and internationally in six countries. (Kansas City Business Journal Online<br />
10/15/07)<br />
Promotion Plans |<br />
Schlotzsky’s is offering coupons for 50¢ off a small Smoked Turkey Breast sandwich and 75¢ off a medium Smoked Turkey<br />
Breast sandwich, $1 off any 8-in. individual size pizza after 2 p.m. with the purchase of a fountain drink, $1.50 off any two<br />
medium size sandwiches or two pizzas with the purchase of a fountain drink, and $2 off any two 8-in. individual size pizzas<br />
after 2 p.m. with the purchase of a fountain drink. The coupons are valid until December 31. (Company Website 4/3/07)<br />
<strong>Menu</strong> Development |<br />
Schlotzsky’s introduced three Angus roast beef sandwiches called “The Angus Beef Round Up.” The trio features French<br />
Dipsky, which is made with mozzarella cheese on sourdough bread with a side of jus, Bacon Beefy Smokecheesy, which is<br />
made with bacon, smoked Cheddar and chipotle mayonnaise, and Philly Dilly, which is made with portobello mushrooms,<br />
mozzarella, red peppers, caramelized onions and chipotle mayonnaise. The items are available through May 31. (NRN Daily<br />
NewsFax 3/21/07)<br />
Schlotzky’s rolled out The Angus Beef Round Up, a line of three Angus roast beef sandwiches, for a limited time. Varieties<br />
include the French Dipsky, with mozzarella cheese on toasted sourdough bread with a side of au jus; the Philly Dilly, with<br />
mozzarella, portobello mushrooms, caramelized onions, red peppers and chipotle mayonnaise; and Bacon Beefy<br />
Smokecheesy, with smoked Cheddar, bacon and chipotle mayonnaise. (NRN Daily NewsFax 3/21/07)<br />
Schlotzky’s Ltd. is testing Carvel and Cinnabon items at two Schlotzky’s restaurants in Austin, TX. The outlets will serve<br />
Carvel’s soft-serve and hand-dipped ice cream flavors in cups, cones, sundaes and shakes. Cinnabon offerings include<br />
Classic Rolls, Caramel Pecanbons, Cinnapacks and Cinnabonstix. The locations will also serve Cinnabon’s CarameLatte<br />
Chills, MochaLatta Chills and Chillattas products. (Company Release 3/29/07; NRN Daily NewsFax 3/30/07)<br />
Schlotzsky’s introduced its Ciao Down promotion, featuring three Italian-inspired menu items for a limited time. Selections<br />
include: • Slicey Meatball Sandwich——made with sliced meatballs, mozzarella and marinara sauce • Trio-Topper Pizza—a<br />
sourdough crust topped with tomato pesto sauce, mozzarella and a choice of three toppings • Italian Wrapsky—with ham,<br />
pepperoni, cotto sausage, Genoa salami, mozzarella, olives, peppers, tomatoes and onions topped with Italian dressing (NRN<br />
Daily NewsFax 9/6/07)<br />
Franchise Activity |<br />
Schlotzky’s Ltd. was purchased by Focus Brands of Atlanta for an undisclosed amount. Focus, which is owned by Roark<br />
Capital Group, franchises and operates about 1,400 outlets of Carvel Ice Cream, Cinnabon and Seattle’s Best Coffee in the<br />
U.S., Puerto Rico and 31 international countries. Schlotzky’s has 365 franchised and company-owned outlets. (Austin<br />
Business Journal 11/20/06; Atlanta Business- ournal-Constitution 11/21/06; NRN Daily NewsFax 11/21/06; Company Release<br />
11/21/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
584
Schlotzsky’s plans to open at least 12 franchised stores in northern Texas over the next five years. The quick-service<br />
sandwich chain also hopes to expand in the Atlanta, Houston, San Antonio, Denver, Phoenix, Kansas City, MO, and Nashville,<br />
TN, markets. The company operated more than 500 stores in 2004 but is now down to 365 units. Focus Brands Inc., the<br />
parent company of Schlotzsky’s, also operates Carvel ice-cream parlors. (Star-Telegram.com 7/9/07)<br />
Personnel |<br />
Thom Gilday, CFO<br />
Rich Kamph, V.P. of Purchasing<br />
Gary Bales, President<br />
Lori Peterson, V.P. of Marketing<br />
Stan Dorsey, V.P. Research & Development<br />
News & Other |<br />
FOCUS Brands plans to test co-branded outlets of Cinnabon, Schlotzsky’s and Carvel Ice Cream in three to five corporate<br />
stores this year. If these co-branded units are successful, the company expects to offer the brands to franchisees by late 2007.<br />
Focus operates 365 Schlotzsky’s, 394 Cinnabons and 536 Carvel Ice Cream units nationwide. (QSR Magazine 2/07 p13)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
585
Shari's Restaurants<br />
Headquarters<br />
9400 SW Gemini Drive, Beaverton, Oregon 97008 USA<br />
Tel: (503)605-4299 Fax: (503)605-4260<br />
www.sharis.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 155,000 154,358 147,192<br />
Company-owned ($000) 155,000 154,358 147,192<br />
Franchised ($000) - - -<br />
U.S. Number of Units 98 97 97<br />
Company-owned 98 97 97<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,600 1,591 1,514<br />
Concept Positioning |<br />
Shari's Restaurants are full-service, 24-hour coffee shops. The privately held chain operates 98 company-owned locations in<br />
California, Idaho, Nebraska, Oregon, Wyoming and Washington.<br />
The chain's unique feature is its patented hexagonal building design. Buildings average 3,900 sq. ft. and seat 130 customers.<br />
Takeout service is available.<br />
Shari's was founded in 1978 by Ron and Sharon "Shari" Berquist. The company was purchased through a leveraged buyout in<br />
1989, becoming Shari's Management Corp. In 1999, the company was acquired by Fairmont Capital, Windjammer Capital<br />
Investors LLC, and its senior executives. In 2005, Shari's was acquired for $80 million by a consortium of investors led by<br />
Circle Peak Capital LLC. The chain currently has no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Shari's Restaurants are open for breakfast, lunch and dinner, featuring a varied menu. Breakfast is available at any time. The<br />
chain offers a broad 150-item menu of soups, salads, sandwiches, wraps, hamburgers and entrées. Breakfast signature items<br />
include Top Sirloin Platter, Denver Omelet, Shari's Crepes, Farmer's Skillet and Eggs Benedict. Quiches, are available in four<br />
varieties—Three-Cheese and Ham, Veggie, Bacon, Mushroom and Pepper Jack and Quiche Lorraine—with fruit and an<br />
English muffin. Whole quiches are sold to go. Signature items featured for lunch and dinner include Mega Melt Stack<br />
Sandwich, Prime Rib Sandwich, Chicken Caesar Wrap, Cajun Chicken Wrap, Colossal Burger, Garlic-Mushroom Swiss<br />
Burger, Southern Fried Chicken, Teriyaki Chicken Stir Fry and Lemon Dill Salmon. A kids' menu features Fruity French Toast,<br />
Spaghetti & Meatballs and Big Top Burger. A breakfast menu for seniors over age 55 features Buttermilk Pancakes, French<br />
toast, and Ham & Cheddar Omelet; seniors’ lunch menu features Chef Salad, Half Sandwich & Soup or Hamburger & Fries,<br />
and seniors’ offerings for dinner are Roasted Prime Rib, Chicken Pasta Alfredo and Harry's Mac & Fish. Desserts include<br />
Banana Split, Cinnama-Sation Sundae, Hot Apple Pie Sundae and Cheesecake with Strawberries. <strong>Menu</strong> prices range from<br />
$1.29–$13.99. Checks average $11.87.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
586
<strong>Menu</strong> Development |<br />
Shari’s Restaurants will eliminate trans fats in its cooking and deep fryer oils in all of its 98 locations. The conversion is<br />
expected to be completed by April 1. (Bizjournals.com 3/12/07)<br />
Skillet breakfasts are popular morning options which offer customers a variety of flavors and combinations to choose from. At<br />
Shari’s Restaurant & Pie Bakery locations, diners can start their day with the Steak Skillet, fried potato nuggets, diced bacon,<br />
sautéed peppers and onions, grilled top sirloin and pepper Jack and Cheddar cheeses topped with scrambled eggs and sour<br />
cream. The Cherry Valley Country Club in Skillman, NJ, menus Tasso Ham-and-Potato Hash, featuring tasso ham, red<br />
peppers, a squash blossom, scrambled eggs, Taleggio cheese and fried green tomatoes topped with crisp speck. At Old Ebbitt<br />
Grill in Washington, D.C., the Breakfast Strata includes chunks of ham, diced egg bread, Cheddar cheese and eggs mixed<br />
with heavy cream, nutmeg and cinnamon served in a cast-iron skillet. Students at Purchase College in Purchase, NY, can dine<br />
on Texas Sunrise, consisting of white, wheat or rye bread stuffed with a choice of scrambled eggs, vegetarian bacon and/or<br />
Cheddar cheese which is then cooked in a skillet. (Restaurants & Institutions 3/01/07 p47)<br />
Shari’s Restaurants added a Classic Quiche Breakfast, a slice of quiche with hollandaise sauce paired with fresh fruit and a<br />
toasted English muffin. (Company Website)<br />
Shari’s Restaurants added a Southern Fried Chicken Strips entrée to its Legendary Dinners lineup. The meal come with<br />
tender strips of golden fried chicken paired with a country biscuit and choice of potato and vegetable. (Company Website)<br />
Shari’s Family Restaurants is using Angus beef for all of its burgers. The chain also introduced two new burger options: Wild<br />
West Angus Burger, topped with onion rings, bacon, Cheddar and barbecue sauce, and the Philly Steak Angus Burger, thinly<br />
sliced steak, grilled onions, mushrooms and provolone. The burgers are paired with Shari’s New Burger/Fry Sauce 66,<br />
reminiscent of burger toppings from “days gone by.” (NRN Daily NewsFax 4/20/07)<br />
Personnel |<br />
Lary Curtis, CEO<br />
Ray Damron, CFO<br />
Kevin Bechtel, V.P. of Purchasing<br />
David Archer, V.P. of Marketing<br />
Kevin Bechtel, V.P. Research & Development<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
587
Shells Seafood<br />
Headquarters<br />
16313 N. Dale Mabry Hwy Suite 100, Tampa, Florida 33618 USA<br />
Tel: (813)961-0944 Fax: (813)960-9059<br />
www.shellsseafood.com<br />
Ownership: Public<br />
Segment: Full Service Seafood<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 53,000 52,335 49,276<br />
Company-owned ($000) 46,000 44,335 41,393<br />
Franchised ($000) 7,000 8,000 7,883<br />
U.S. Number of Units 25 25 25<br />
Company-owned 22 22 21<br />
Franchised 3 3 4<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,085 2,000 1,800<br />
Concept Positioning |<br />
Shells Seafood is a full-service seafood restaurant dedicated to serving “100% fresh seafood” in generous portions. The<br />
restaurant is well-known for its large portion sizes, prices, variety and quality. Popular seafood menu items are mussels,<br />
calamari, grouper and lobster. All sauces are made daily and the restaurant receives daily deliveries. Shells Seafood<br />
Restaurants, Inc. owns and operates 88% of the locations; the rest are franchised. With its tropical atmosphere, the chain is<br />
designed to be a no frills restaurant, serving authentic seafood. All restaurants are located exclusively throughout Florida.<br />
The mostly freestanding restaurants are designed to reinforce the concept's core seafood menu. The interiors are brightly<br />
colored with high-energy signage, all with a tropical flair. The staff, wearing its island-inspired shirts, adds to the atmosphere.<br />
The menu is open for lunch and dinner.<br />
Shells Seafood first opened in 1986 in South Tampa, FL, under Chef John Christen. In addition to its casual-dining restaurant,<br />
Shells is thriving with a successful catering program in the markets it serves. No expansion plans have been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Shells Seafood is open for lunch and dinner, specializing in a variety of seafood items, including oysters, clams, scallops,<br />
crawfish, crabs, lobster, shrimp, surf n' turf, and mahi mahi. Most entrees are cooked to order in a variety of ways—sautéed,<br />
steamed, grilled, blackened and fried. Signature selections include Crab Louie, Seafood Newberg, NY Strip and Fried Shrimp<br />
and Dockside Sampler. Shells also offers Party Platters—jumbo shrimp cocktail, crab cakes, lobster rolls and soups, such as<br />
clam chowder. Appetizers are also available, as are entree-sized salads and hearty pasta selections. Full liquor service is<br />
available. A kids’ menu is also available. <strong>Menu</strong> prices range from $3.99–$16.99 for entrées and $6.99–$99.99 for party<br />
platters. Checks average $12.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
588
Personnel |<br />
AnnaMarie Balch, Director of Marketing<br />
Warren Nelson, CFO<br />
Christopher Ward, V.P. of Purchasing<br />
Guy Kathman, V.P. of Operations<br />
Leslie Christon, President<br />
News & Other |<br />
Shells Seafood Restaurants Inc. reported for the third quarter ended October 1 a net loss of $1 million from a loss of $0.2<br />
million for the same period last year. Revenues increased 2.8% to $10.5 million from $10.2 million. Same-store sales grew<br />
1.5%. (Company Release 11/8/06)<br />
Shells Seafood Restaurants Inc. reported for the fourth quarter ended December 31 a net loss of $2.3 million, equal to the loss<br />
for the fourth quarter of 2005. Revenues decreased 1% to $9.7 million from $9.8 million. Same-store sales fell 3%. For the<br />
year ended December 31, there was a net loss of $3 million compared to a loss of $3.6 million for 2005. Revenues increased<br />
7.9% to $47.8 million from $44.3 million. Same-store sales grew 3.8%. (Company Release 3/1/07)<br />
Shells Seafood Restaurants Inc. reported for the first quarter ended April 1 a net loss of $1.1 million from earnings of $28.4<br />
million for the same period last year. Revenues decreased 7.9% to $13.4 million from $14.6 million. Same-store sales fell<br />
6.8%. (Company Release 5/11/07)<br />
Shells Seafood Restaurants Inc. reported for the second quarter ended July 1 a net loss of $1.2 million compared to a loss of<br />
$9,000 for the same period last year. Revenues declined 12.1% to $11.5 million from $13.1 million. Same-store sales<br />
decreased 10.8%. (Company Release 8/9/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
589
Shoney's<br />
Headquarters<br />
1717 Elm Hill Pike Suite B-1, Nashville, Tennessee 37210 USA<br />
Tel: (615)231-2153 Fax: (615)231-2531<br />
www.shoneys.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 465,000 475,000 505,000<br />
Company-owned ($000) 95,000 100,000 230,000<br />
Franchised ($000) 370,000 375,000 275,000<br />
U.S. Number of Units 282 290 318<br />
Company-owned 56 64 126<br />
Franchised 226 226 192<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,580 1,555 1,550<br />
Concept Positioning |<br />
Shoney’s is a full-service family-style restaurant featuring traditional homestyle entrées as well as an extensive breakfast,<br />
lunch and dinner buffet. Privately held by Royal Hospitality Corp., the company operates 282 units in 18 Southern and<br />
Midwestern states, 226 of which are franchised.<br />
Shoney’s units are freestanding, averaging 1,580 sq. ft. and seating approximately 174 patrons. Takeout services are<br />
available at all restaurants. Units feature large windows, indoor and outdoor lights, awnings, live plants and framed photos.<br />
Newer stores have carpeting and partitioned areas for a more private dining experience. The Pie Shoppe provides larger<br />
waiting areas, flexible lighting patterns and new interiors with warmer colors and textures. The chain's Family Fun Night is a<br />
family-centered evening featuring clowns, face painting, balloon animals and prize giveaways.<br />
In 1947, Alex Schoenbaum opened his first Shoney’s at a Parkette Drive-In and Bowling Alley in Charleston, WV. In 1953,<br />
Schoenbaum bought the franchise rights for Big Boy. Ray Danner opened his first Shoney’s in Madison, TN, under a franchise<br />
agreement with Schoenbaum in 1959. The two joined forces in 1971 and became Shoney’s, Inc. in 1976. In 1984, the<br />
company terminated its affiliations with the Big Boy name and the brand became known as just Shoney’s. In 2002, Shoney’s<br />
merged with an affiliate of Dallas based Lone Star U.S. Acquisitions, LLC and U.S. Restaurant Properties in a cash transaction<br />
that took the company private. In 2007, Royal Hospitality, an Atlanta-based food service company acquired Shoney’s<br />
Restaurants from Shoney’s LLC under undisclosed terms.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
590
<strong>Menu</strong> Positioning |<br />
Shoney's offers a varied menu for traditional broad-based family dining and serves the breakfast, lunch and dinner dayparts.<br />
Its breakfast buffet features scrambled eggs, bacon, fluffy pancakes, cinnamon French toast, seasonal fruits and biscuits.<br />
Signature breakfast entrée items include the country fried steak, Pancake Platter and ham & cheese omelet. For lunch and<br />
dinner, the menu features salads, sandwiches, burgers, seafood and entrées. Other highlights include the Chicken Caesar<br />
Salad, Philly Cheese Steak Sandwich, Reuben, All-American Bacon Cheeseburger, Mushroom Swiss Burger, Fish & Chips, T-<br />
bone steak, Sizzling Sirloin and Chicken Fettuccini. Side items include french fries or baked potato, onion rings, house salad,<br />
or homestyle soup. A Friday night Prime Rib & Seafood Buffet is also available. A kid's menu features Shoney Bear pancakes<br />
and French Toast Sticks for breakfast. Kids’ lunch & dinner offerings include chicken nuggets, popcorn shrimp and grilled<br />
cheese. <strong>Menu</strong> prices range from $2.99–$12.99. Checks average $10.<br />
Promotion Plans |<br />
Shoney’s Restaurants hired Match Inc. as its agency of record. Match Inc. replaces Cliff Freeman and Partners of New York.<br />
Details were not disclosed. (NRN Daily NewsFax 3/21/07)<br />
Shoney’s launched a “Two Can Dine for $10.99” promotion. Customers can select two meals from among four new meals and<br />
two of Shoney’s regular menu items. The new meals include Popcorn Shrimp Basket, Chicken Alfredo, Shoney’s Chicken Stir<br />
Fry and Burgundy Mushroom Chopped Beef. Regular entrées include the Grilled Chicken Dinner and the Half-O-Pound<br />
Dinner. The offer will run through September 30. (Nation’s Restaurant News 9/3/07)<br />
<strong>Menu</strong> Development |<br />
Shoney’s has added a new French Roast premium coffee to its menu. The company’s breakfast menu continues to feature<br />
more than 29 items daily. (Company Release 10/30/06)<br />
Personnel |<br />
David Davoudpour, CEO<br />
Stuart Hall, CFO<br />
Patrick Smith, V.P. of R&D<br />
Dan Bigelow, V.P. of Marketing & Advertising<br />
Patrick Smith, Executive Chef/ Purchasing<br />
News & Other |<br />
Shoney’s Restaurants has been acquired by Royal Hospitality Corp., the largest franchisee of Church’s Chicken’s. In early<br />
2007, Royal Hospitality acquired the trademark and all franchise rights to Shoney’s name; the purchase of the 52 companyowned<br />
Shoney’s will take place in early February. Terms of the agreement were not disclosed. Shoney’s operates and<br />
franchises 282 restaurants nationwide. (Nation’s Restaurant News Online 1/02/07; NRN Daily NewsFax 1/03/07; Company<br />
Release 1/02/07; Philly.com 1/02/07)<br />
Shoney’s has lowered buffet prices and added menu items in an effort to reinvigorate the brand. The chain has cut the price of<br />
its weekday breakfast buffet by $1.50 and is adding an upscale menu featuring items such as a $7.99 mahi mahi entrée.<br />
Shoney’s also plans to increase employee training and add more fresh meats and produce to its menu. (NRN.com 11/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
591
Shula's Steak House<br />
Headquarters<br />
6843 Main St, Miami Lakes, Florida 33014 USA<br />
Tel: (305)817-4072 Fax: (305)817-4092<br />
www.donshula.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 90,000 85,000 83,500<br />
Company-owned ($000) - - 6,500<br />
Franchised ($000) 90,000 85,000 77,000<br />
U.S. Number of Units 26 26 25<br />
Company-owned - - 2<br />
Franchised 26 26 23<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,000 4,000 3,500<br />
Concept Positioning |<br />
Shula's Steak House is a full-service restaurant named for legendary NFL coach and founder, Don Shula. Privately held, Dave<br />
Shula is the company's president and director of operations, with the coach still having a strong presence in the concept. The<br />
restaurant features a variety of steak cuts ranging from 12-oz. Filet Mignon to the 48-oz. Porterhouse. Those who finish the<br />
48-oz. Porterhouse become part of the restaurants “48 oz. Club.” Shula’s Steak House has become one of the top five<br />
steakhouses in the nation, and is 100% franchised in more than 12 states in the U.S.<br />
Units are freestanding, averaging approximately 5,500 sq. ft. with seating for 175. The décor is themed after the 1972 Miami<br />
Dolphin’s “Perfect Season,” with black and white photos in gilded frames, dimly lit spice-colored walls mixed with traditional<br />
upscale steakhouse accents, notably dark-stained wood, dark lighting, large comfortable chairs and sports memorabilia with<br />
menus that are hand-painted on official NFL footballs. The restaurant offers table delivery service with most locations in large<br />
metropolitan areas.<br />
Shula’s was founded in 1989 by Don Shula and David Younts, and the first restaurant opened in Miami Lakes, FL. Don’s son,<br />
Dave Shula, joined the company in 1997 and helped the restaurant expand nationwide. The company has developed three<br />
other restaurant concepts: Shula's Steak 2, a casual steak house; Shula's On The Beach, an upscale seafood concept; and<br />
Shula's 347 Grill, a varied menu concept. In 1989, the restaurant established the 48 oz. Club, a club for everyone who finishes<br />
Shula’s 48-oz. steak. Members receive a picture of Coach Shula, a personalized letter from Dave Shula and their name<br />
featured on the restaurant’s website. In 2000, the company signed an agreement with Publix Super Markets and 600 locations<br />
now carry Shula's Steak Sauce. Currently, there are restaurants located in almost every NFL city, with one international<br />
location in Panama.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
592
<strong>Menu</strong> Positioning |<br />
Open for lunch and dinner at select units, Shula’s core menu features appetizers, soups, salads, steaks, fish, chicken,<br />
vegetables and desserts. Signature items include appetizers such as oysters on the half shell, barbecued shrimp and steak<br />
tartar. Popular items also include steaks, ranging from the 48-oz. Porterhouse and the 22-oz. Cowboy Steak to the 12-oz. Filet<br />
Mignon. Other signature entrées include lobster, salmon, lamb chops and chicken breast. Featured sides are hash brown<br />
potato and potato skins. Desserts include cake, crème brulee and ice cream. Alcoholic beverages are available. <strong>Menu</strong> prices<br />
range from $15.45–$40.95. Checks averages $65.<br />
Expansion Plans |<br />
Shula’s 347 Grill opened a new location in Conshohocken, PA. The unit is located in the Philadelphia Marriott West and<br />
features a contemporary menu and atmosphere. This location marks the chain’s second unit in the area. (Philadelphia<br />
Business Journal 4/20/07)<br />
Promotion Plans |<br />
Shula’s Steak House is holding a sweepstakes where if one signs up for its Team Shula, that person will be entered in a<br />
contest for a chance to win a 2007 Lexus ES 350 or $10,000 in spending cash. Entries can be mailed in, visiting a Shula’s<br />
sponsored event or dining at a Shula’s restaurant. (Company Web Site 11/15/06)<br />
Personnel |<br />
Peter Farrant, Executive Chef<br />
Ignacio Garcia, Controller<br />
Bill Herman, Director of Marketing<br />
Edwardo Sandoval, Director of Operations<br />
Dave Shula, President<br />
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published.<br />
593
Silver Diner<br />
Headquarters<br />
11806 Rockville Pike, Rockville, Maryland 20852 USA<br />
Tel: (301)770-0333 Fax: (301)770-2832<br />
www.silverdiner.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 45,653 42,217 39,736<br />
Company-owned ($000) 45,653 42,217 39,736<br />
Franchised ($000) - - -<br />
U.S. Number of Units 15 15 13<br />
Company-owned 15 15 13<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,245 3,205 3,150<br />
Concept Positioning |<br />
Silver Diner is a full-service family restaurant that features the look of a traditional diner, serving a menu of healthy homestyle<br />
food. The privately held chain operates 15 company-owned locations in New Jersey, Maryland and Virginia.<br />
Units are generally freestanding and average 5,000 sq. ft. with seating for about 222 guests. Combining a classic, streamlined<br />
diner design and 21st century innovation, units feature stainless steel, porcelain enamel, glass blocks, neon, big leather<br />
booths, authentic 1950s-era jukeboxes and a 26-ft.-high glass-block tower at the front entrance. Newer units feature more<br />
chrome, bigger windows and brighter colors. Takeout service is available.<br />
Silver Diner was opened in 1988 in Rockville, MD, by Robert Giairno and Ype Von Hengst. In early 1996, it merged with Food<br />
Trends Acquisition Corp. The company was taken private in 2002. The company has since developed a franchise program to<br />
further push growth. Currently, the chain is looking for franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Silver Diner is open for breakfast, lunch and dinner, offering traditional diner fare with updated alternatives, including meatloaf,<br />
oven-roasted turkey and chicken pot pie. An all-day breakfast is offered. Salt is de-emphasized and only cholesterol-free<br />
vegetable oil and pure filtered water are used. In 2004, the company introduced a TLC (Tasty Lower Carb) menu that included<br />
appetizers such as BBQ Chicken & Cilantro Quesadilla and Meatloaf Dinner. <strong>Menu</strong> prices range from $4.49–$14.99. Checks<br />
average $13.<br />
Technology |<br />
Silver Diner introduced its new online ordering system. Customers can also check their gift card and blue plate card balances<br />
online. (Company Website 4/3/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
594
Personnel |<br />
Ype Von Hengst, V.P. of Culinary Development<br />
Robert Giaimo, CEO<br />
Patrick Meskell, V.P. of Operations<br />
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published.<br />
595
Sizzler<br />
Headquarters<br />
6101 W. Centinela Ave. Suite 300, Culver City, California 90230 USA<br />
Tel: (310)846-8770 Fax: (310)846-8789<br />
www.sizzler.com<br />
Ownership: Private<br />
Segment: Limited Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 370,000 385,000 371,000<br />
Company-owned ($000) 80,000 85,000 81,000<br />
Franchised ($000) 290,000 300,000 290,000<br />
U.S. Number of Units 223 235 222<br />
Company-owned 36 42 44<br />
Franchised 187 193 178<br />
International Sales ($000) 162,000 160,000 155,000<br />
International Units 86 86 86<br />
Average Sales/Unit ($000) 1,600 1,595 1,500<br />
Concept Positioning |<br />
Sizzler Restaurants are moderately priced, family-oriented steakhouse restaurants in a partial self-service format. The<br />
privately held chain operates 309 units worldwide, 187 of which are franchised.<br />
Generally freestanding, a typical Sizzler unit averages 5,000–6,000 sq. ft. and seats 150–200 customers. Emphasis in site<br />
selection is moving from low-cost secondary locations to high-density primary sites, with suburban shopping centers favored.<br />
A new prototype is more upscale, with a stone entrance, high roofline, dramatic display kitchen, strategically placed salad bar,<br />
skylights and red-rock walls with murals. Dining rooms are on each side of the salad bar, and desserts and hot appetizers are<br />
nearby. The all-you-can-eat buffet is no longer part of the concept.<br />
Del Johnson founded the Sizzler concept in 1958 and sold it in 1967. In 1982, its then parent spun off Sizzler as a public<br />
company but held controlling stock interest. The company also developed other franchise holdings in both the U.S and<br />
Australia, the primary brand being KFC. In 1991, the company sold its domestic KFC operations. It continues to operate as a<br />
KFC franchisee in Australia. The company filed Chapter 11 bankruptcy in 1996 and emerged a year later. In 2000, Sizzler<br />
completed its purchase of an 82% interest in Oscar’s Restaurants, San Diego, for $16 million and expansion support. A year<br />
later, the company changed its corporate name to Worldwide Restaurant Concepts Inc. to better reflect its multiconcept<br />
expansion strategy. In 2005, Worldwide Restaurant Concepts was acquired by Pacific Equity Partners. Shortly thereafter, the<br />
company went private. Sizzler is now operated by Sizzler USA under the ownership of Pacific Equity Partners. Sizzler has<br />
recently expanded with the opening of 25 new units in China, Puerto Rico, California and Las Vegas with four existing<br />
franchisees and one new franchisee. In 2007, the chain signed a franchise agreement for four locations in Mexico.<br />
<strong>Menu</strong> Positioning |<br />
Sizzler is open for lunch and dinner, offering a varied menu that features a salad bar, burgers, steaks, platters, chicken, ribs<br />
and seafood. Specialties include Sizzler Steak, Porterhouse, Sizzlin' Grilled Shrimp Skewers Platter, Crispy Chicken with<br />
Fettuccine Alfredo, Lemon Herb Chicken, St. Louis Spare Ribs, Grilled Salmon and Fisherman's Platter. Healthy options<br />
include Hibachi Chicken with Broccoli and Steak & Shrimp Skewers with Broccoli. Sandwiches include Grilled Cajun Chicken<br />
Sandwich and Open-Faced Steak Sandwich. A kids’ menu offers Steak & Fries, Pizza & Fries, Macaroni & Cheese or Dino<br />
Chicken & Fries. Beer and wine are available. <strong>Menu</strong> prices range from $5–$8. Checks average $10.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
596
Expansion Plans |<br />
Sizzler plans to re-enter the Houston market with 10 restaurants slated to open over the next several years. The units will<br />
feature the chain’s new prototype, which eliminates the single ordering line, as well as a revamped menu. (Houston Business<br />
Journal 2/27/07; Foodservice Equipment & Supplies 3/07/07)<br />
Sizzler is planning to re-enter the Houston market with a steak and seafood concept that emphasized value and quality.<br />
Sizzler left Houston 17 years ago. The new concept is expected to open in June in the Spring area. The company has<br />
abandoned its steak-and-all-you-can-eat concept in Houston because of a tarnished image of decline in quality. It opened its<br />
new prototype in Antioch, CA, in 2004 with dishes such as its 8-oz. Signature Steak, Malibu Chicken, Steak & Endless Shrimp<br />
and Hibachi Chicken, which it is now bringing to the Houston area. (Chron.com 4/12/07)<br />
Promotion Plans |<br />
Sizzler USA hired Ground Zero as its new ad agency, replacing Kovell-Fuller, which held the account for five years. The first<br />
branding and promotional campaigns are expected to debut in January. (Nation’s Restaurant News 8/27/07)<br />
<strong>Menu</strong> Development |<br />
Sizzler has revamped its salad bar by adding at least 50 new items. Rebranded as Fresh & Tasty, the salad bar’s new<br />
selections include a Thai noodle salad with fresh chopped vegetables with toasted sesame seeds in a sesame dressing and a<br />
rotini pasta salad with fresh vegetables and Italian dressing. (NRN Daily NewsFax 1/26/07)<br />
Sizzler introduced two new Lemonade combinations for a limited time, Mango and Raspberry. Also available is the chain’s<br />
Classic Strawberry Lemonade prepared with real strawberries. (Company Website)<br />
Sizzler is offering guests the opportunity to order a Half Rack of St. Louis-style Ribs for $4.99 during its Summer Grill<br />
promotion. The entrée comes with a side of fries and the use of the chain’s Fresh ’n Tasty Salad Bar, featuring over 50 items<br />
such as soups and appetizers. (Company Website)<br />
Sizzler introduced Steak Burgers and seasonal salads to its menu for a limited time. Burgers include the Blue Cheese burger,<br />
a 1/3 lb. beef patty with crumbled blue cheese and sautéed onions on a potato bun, and the Bacon Mushroom Swiss burger,<br />
with mushrooms, Swiss cheese, and bacon on a potato bun. Salads include a red, white and blue potato salad and a BBQ<br />
corn pasta salad. The Blue Cheese burger is priced at $6.49 and the Bacon Mushroom Swiss burger costs $6.99.<br />
(Lexisnexis.com 7/26/07)<br />
Sizzler is offering three $8.99 USDA Choice steaks for a limited time. The 8-oz. steaks are available with garlic butter, blue<br />
cheese sauce or peppercorn sauce. The steaks are served with a potato and a Caesar salad. (NRN Daily NewsFax 10/3/07)<br />
International Activities |<br />
Sizzler USA signed a franchise agreement with Grupo Payger calling for four Mexico locations, in Mexico City and the<br />
Acapulco area, within the next 12 months. (NRN Daily NewsFax 8/8/07)<br />
Personnel |<br />
Ken Cole, CEO<br />
John Bayley, CFO<br />
John Burns, V.P. of Purchasing<br />
Michael Branigan, V.P. of Marketing<br />
Audrey Baldwin, Senior Director of <strong>Menu</strong> Development & Product Innovation<br />
Sizzler hired Audrey Baldwin as Senior Director of <strong>Menu</strong> Development and Product Innovation. Previously, Baldwin served as<br />
Senior Food Technologist for CKE Restaurants and was an instructor at Orange Coast College in Costa Mesa, CA. Baldwin<br />
replaces Dudley McMahon, who left to explore other interests. (Nation’s Restaurant News p 52 4/16/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
597
News & Other |<br />
Sizzler USA plans to test a full-service format with a full bar at a franchised location in Las Vegas. The 5,500-sq.-ft. space is<br />
slated to open in late summer and will be modeled after the full-service, full-bar outlets in Asia. <strong>Menu</strong> prices will remain the<br />
same and the self-service salad bar will still be available. The outpost may use the limited-service format at lunch and switch<br />
to full service at dinner. Sizzler also plans to test a limited-menu express version at a Los Angeles outlet later this year. The<br />
1,200-sq.-ft. variation will be designed for airports and college campus locations. In other news, Sizzler will use a trans-fat-free<br />
frying oil. The company is currently using the un-hydrogenated cottonseed oil blend at company-owned branches in California<br />
and at select franchised units outside of California. Sizzler expects to roll out the trans-fat-free oil out system-wide in the<br />
coming months. (NRN Daily NewsFax 5/18/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
598
Skyline Chili<br />
Headquarters<br />
4180 Thunderbird Ln, Fairfield, Ohio 45414 USA<br />
Tel: (513)874-1188 Fax: (513)874-3591<br />
www.skylinechili.com<br />
Ownership: Private<br />
Segment: Limited Service Other<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 109,000 97,500 82,200<br />
Company-owned ($000) 26,500 26,000 25,200<br />
Franchised ($000) 82,500 71,500 57,000<br />
U.S. Number of Units 163 162 130<br />
Company-owned 40 40 40<br />
Franchised 123 122 90<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 685 675 675<br />
Concept Positioning |<br />
Skyline Chili is a limited-service restaurant chain that has maintained the same “Cincinnati-style” chili recipe since its opening.<br />
Skyline Chili is a long-time favorite in the greater Cincinnati area, and since its inception, has extended its presence in other<br />
Midwestern states. Its most popular menu item is the “3-Way,” prepared with chili and cheese served over spaghetti. Skyline<br />
Chili Inc. operates the chain, which only franchises units that are in a 200-mile proximity to its Fairfield, OH, commissary. The<br />
company’s parent is Prudential Capital Partners.<br />
Skyline Chili’s units measure approximately 2,800 sq. ft. and are both freestanding and incorporated as inline units into strip<br />
malls. The décor is limited but open, with booths and an open kitchen that is visible to patrons. The chain has recently<br />
introduced new Skyline units that feature an updated interior and exterior design package. These new units offer drive-thru<br />
service as well as the option to dine-in. New interior décor elements include bright yellow and purple painted walls, with<br />
hanging yellow lamps, light wood tables and chairs and reupholstered booths. New freestanding exterior buildings features<br />
light brick and newly designed awnings for windows. In addition to its limited-service menu, Skyline Chili also sells frozen and<br />
canned chili at grocery stores in the markets it serves.<br />
Nicholas Lambrinides founded Skyline Chili in Cincinnati, OH in 1949. Lambrinides named the restaurant after the skyline view<br />
he had of the city from his location. Expansion has occurred through franchising, which began in 1965 and the company<br />
operates and franchises more than 140 restaurants throughout the Midwest. In 2005, private equity firm Nautic Partners LLC<br />
sold its majority stake in Skyline Chili to Prudential Capital Partners for an undisclosed sum. Skyline Chili locations outside<br />
Ohio include Indiana, Florida, Michigan and Kentucky. No long term expansion plans have been announced.<br />
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published.<br />
599
<strong>Menu</strong> Positioning |<br />
Skyline Chili serves Coney dogs, salads, burritos and wraps for lunch and dinner. Its signature item is the Cheese Coney—a<br />
hot dog in a steamed bun, topped with mustard, Skyline chili, diced onions and shredded cheese. , Its biggest sellers are its<br />
chili dishes. The chili is available with spaghetti, cheese, onions and red beans, as a chili sandwich with cheese, and also as<br />
hot dogs covered in chili. One of its popular menu items is 3-Way, a dish made with chili and cheese served over spaghetti.<br />
Other menu options include its Greek Chicken Salad, Southwestern Chicken Wrap and Deluxe Black Bean Burrito. A kid's<br />
menu features Hot Doggy Platter, Kid Coney Special, and P'sghetti Special. No alcohol is served. <strong>Menu</strong> prices range between<br />
$1.20 and $6.29. Checks average $5.<br />
Promotion Plans |<br />
Skyline Chili is offering 50% more cheese on its regular or large three-, four-, or five-way meals at no extra charge. The chain<br />
dubbed the promotion Sky-Way. The offer is available for a limited time. (Company Website 9/21/07)<br />
Personnel |<br />
Kevin McDonnell, CEO<br />
Brett Clark, CFO<br />
Tom Hannon, V.P. of Purchasing<br />
Debbie Chitwood, V.P. of Operations<br />
Terry Donovan, V.P. Research & Development<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
600
Smith & Wollensky<br />
Headquarters<br />
880 3rd Ave. 4th floor, New York, New York 10022 USA<br />
Tel: (212)838-2061 Fax: (212)308-3521<br />
www.smithandwollensky.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 124,700 124,000 121,000<br />
Company-owned ($000) 98,000 97,500 121,000<br />
Franchised ($000) 26,700 26,500 -<br />
U.S. Number of Units 9 11 11<br />
Company-owned 8 10 11<br />
Franchised 1 1 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 10,300 10,000 9,000<br />
Concept Positioning |<br />
Smith & Wollensky is an elegant, full-service, white tablecloth restaurant. The classic American steakhouse concept features<br />
prime grade, dry-aged beef, fresh vegetables, pastries made on-premise and an extensive wine list. The elegant atmosphere<br />
and high-quality fare appeal to consumers seeking a fine dining experience. Smith & Wollensky Restaurant Group is the<br />
parent company of Smith & Wollensky. Of the nine Smith & Wollensky locations only one is franchised; the other units are<br />
company owned. Smith & Wollensky is a national chain.<br />
Located in major metropolitan areas, Smith & Wollensky restaurants vary greatly in size; a mid-size Smith & Wollensky unit is<br />
roughly 10,000 sq. ft. with a two-story dining room that seats over 400 guests. Décor features hardwood floors, polished brass<br />
fixtures and dark wood accents that aim for a “turn of the century” elegance. Exterior design features traditional awnings,<br />
incorporating the concept's signature colors of green and white. Restaurants also house separate dining areas that are<br />
available for private events.<br />
Alan Stillman, the restaurateur credited with the development of casual-dining and creator of T.G.I. Friday’s, opened the first<br />
Smith & Wollensky in Manhattan in 1977. Its parent company was created in early 1996 and 25% of it was sold to Thomas H.<br />
Lee Co., Boston, to help speed expansion. In late 1999, the company changed its name to Smith & Wollensky Restaurant<br />
Group to better reflect its flagship chain brand. In mid-2001, the company introduced its IPO and took the company public. The<br />
Smith & Wollensky Restaurant Group operates five other restaurants in New York including including Park Avenue Cafe, The<br />
Post House, Quality Meats and Maloney & Porcelli. In 2006, the company announced it will shift development focus to its new,<br />
more casual concept, Wollensky Grill. Smith & Wollensky plans to construct four Wollensky Grill locations through 2008.<br />
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published.<br />
601
<strong>Menu</strong> Positioning |<br />
Smith & Wollensky features a full-service menu and is open for lunch and dinner. Smith & Wollensky classic items include<br />
USDA Prime dry-aged steaks, S&W Vealchop Ribeye, Roast Prime Rib, Marinated Cajun Ribeye, American Lamb Chops and<br />
Whole Free-Range Lemon Pepper Chicken. Side items include asparagus, creamed spinach, onion rings, whipped potatoes,<br />
hashed browns, seasonal vegetables, French fries, truffled macaroni and cheese and baked potato. For dinner, the menu also<br />
features a variety of appetizers, shellfish, salads and seafood. An extensive wine list is available. The restaurants also offer<br />
banquet dining rooms available for private dining. <strong>Menu</strong> prices are between $5.50-$34.50 for lunch and $7.00-$99. Checks<br />
average $46.<br />
Promotion Plans |<br />
Smith & Wollensky will host its 41st National Wine Week event September 17–21. The restaurant will offer 10 wines for $10.<br />
(Company Website 9/4/07)<br />
Personnel |<br />
Eugene Zuriff, COO/President<br />
Allen Stilman, CEO<br />
Sam Goldfinger, CFO<br />
Kieran Fahey, V.P. of Purchasing<br />
Alison Good, V.P. of Marketing<br />
News & Other |<br />
Smith & Wollensky reported for the third quarter ended October 2 a net loss of $1.9 million from a loss of $3.2 million for the<br />
same period last year. Same-store sales increased 2.9%. (Company Release 11/15/06)<br />
Smith & Wollensky reported for the third quarter ended October 2 a net loss of $1.9 million from a loss of $3.2 million for the<br />
same period last year. Same-store sales increased 2.9%. (Company Release 11/15/06)<br />
Prime Blue Grill is a new concept from Smith & Wollensky Restaurant Group veterans Jim Dunn and Dave Terry. The first unit<br />
is slated to open by March 2007 on Miami’s South Bayshore Drive. Dunn and Terry expect to spend $15 million to open four<br />
similar 8,000-sq.ft. upscale steak and seafood units over the next five years. Prime Blue’s menu features organic hormonefree<br />
beef. Its interior seats 250 guests in a “soft” contemporary setting. (NRN Daily NewsFax 12/05/06)<br />
Smith & Wollensky reported December same-store sales increased 9%. (Company Release 1/5/07)<br />
Landry’s Restaurants Inc. increased its per-share offer to acquire Smith & Wollensky Restaurant Group from $9.25 to $9.75,<br />
which would total $84 million. The bid is higher than the $79.6 million that Smith & Wollensky received from Patina Restaurant<br />
Group last month. Landry’s also wants to purchase all of the publicly held SWRG restaurants, including the New York<br />
properties that Patina agreed to let the chain’s founder buy back for $5.3 million. In other news, Smith & Wollensky plans to<br />
open three to four outlets in 2008 despite recent financial woes. The company reported a fourth quarter net loss of $3.46<br />
million. Smith & Wollensky recently closed Cité, a New York City Parisian-style café. (NRN Daily NewsFax 3/19/07; New York<br />
Observer 4/16/07)<br />
Smith & Wollensky reported for the second quarter ended July 2 a net loss of $8.1 million compared to a profit of $5.7 million<br />
for the same period last year. Same-store sales declined 1.5%. (Company Release 8/16/07)<br />
Smith & Wollensky stockholders approved the merger between the company and Project Grill LLC. The merger will be<br />
completed as soon as possible after the companies agree on several issues, including liquor licensing authority approval. The<br />
Smith & Wollensky stockholders will receive $11 in cash for each share of common stock held when the merger is complete.<br />
(Company Release 8/20/07)<br />
The joining of Smith & Wollensky and Bunker Hill Capital was completed on August 28. Bunker Hill Capital acquired Smith &<br />
Wollensky Restaurant Group for $98 million. The transaction calls for the sale of two Manhattan restaurants and management<br />
contracts for three other restaurants in the area for $6.9 million to a new company formed by Alan Stillman, Smith & Wollensky<br />
founder and former chief executive officer. (NRN Daily NewsFax 8/30/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
602
Smokey Bones Barbeque & Grill<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809 USA<br />
Tel: (407)245-4000 Fax: (407)245-4134<br />
www.smokeybones.com<br />
Ownership: Private<br />
Segment: Full Service BBQ<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 347,600 310,000 220,000<br />
Company-owned ($000) 347,600 310,000 220,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 129 117 83<br />
Company-owned 129 117 83<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,900 3,100 3,200<br />
Concept Positioning |<br />
Smokey Bones Barbeque & Grill is a casual-dining restaurant designed to appeal to sports fans. The chain specializes in<br />
traditional hickory-smoked barbeque, including hand-pulled pork platters, steaks, ribs, chicken and sandwiches. Darden<br />
Restaurants owns and operates more than 125 company-owned Smokey Bones locations across the Eastern and Midwestern<br />
U.S., as well as the Virgin Islands, Puerto Rico and Guam.<br />
Units average 7,000 sq. ft. with seating for approximately 175 people. Restaurants offer takeout and catering services as well<br />
as a party pack menu for groups with up to 2,500 guests. The atmosphere reflects a relaxed, rustic mountain lodge with<br />
wooden beams. Guests can listen to sporting events and each table features a control box that allows diners to select the<br />
game of their choice. Stores serve lunch and dinner seven days a week.<br />
Smokey Bones is owned by Florida-based Darden Restaurants, which also operates Red Lobster, Olive Garden and Bahama<br />
Breeze. Darden opened its first Smokey Bones unit in Orlando in 1999. The company first expanded its efforts to attract diners<br />
with a menu revamp, including the addition of non-barbecue items and the removal of barbecue offerings from the menu.<br />
However, in 2006 Darden began considering a possible name change for the concept, which has led to the development of<br />
Rocky River Grillhouse, a casual mountain-themed restaurant, which will replace 127 Smokey Bones locations in Southwest,<br />
Midwest and Mid-Atlantic markets. After rapid growth, Darden has slowed the rate of Smokey Bones expansion.<br />
<strong>Menu</strong> Positioning |<br />
While positioned as a casual-dining BBQ concept, Smokey Bones offers a menu loaded with more options than the standard<br />
barbecue concept. For both lunch and dinner, the menu features appetizers, fish, chicken, sandwiches, burgers, barbecued<br />
ribs and steak. Signature items include Spicy Spinach Artichoke dip, Barbeque Chicken Nachos, Grilled Atlantic Salmon, Fried<br />
Freshwater Catfish, Chicken Pot Pie, Grilled Chicken sandwich, Sliced Smoked Turkey Sandwich, Buffalo Burger, Vegetarian<br />
Burger, Hand Pulled Pork and 18-oz. Cowboy Ribeye. Side items include coleslaw, French fries, steamed broccoli and<br />
cinnamon apples. A kids’ menu features BBQ pulled-pork sandwich, macaroni & cheese and chicken fingers. Desserts include<br />
banana pudding, apple cobbler a la mode and chocolate fudge cake. Alcoholic beverages include beer and mixed drinks, such<br />
as the Twisted Timber and Frozen Mountain Margarita. Entrée prices range from $6 to $19 and checks average $17.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
603
Expansion Plans |<br />
Darden Restaurants plans to open 35–40 Olive Gardens and four to 10 Red Lobsters over the next year. In related news, the<br />
company will also debut three to five outlets from its stable of other concepts, which include the Bahama Breeze, Smokey<br />
Bones, Rocky River Grillhouse and Seasons 52 brands. (Foodservice Equipment Reports 3/07 p20)<br />
Promotion Plans |<br />
Smokey Bones is holding Game Day Weekends during the football season. On Saturdays and Sundays, Smokey Bones<br />
locations will broadcast college and professional football games and will offer specials. (Company Website 10/2/07)<br />
<strong>Menu</strong> Development |<br />
Smokey Bones Barbecue & Grill is testing new menu items after shutting down more than 50 of its locations and putting the<br />
remaining 73 up for sale. As it considers bids from potential buyers, the chain rolled out its Sugar Glazed Baby Back Ribs,<br />
available for a limited time. The chain is also testing other possible limited-time promotional items. (NRN Daily NewsFax<br />
7/17/07)<br />
Personnel |<br />
Clarence Otis, CEO<br />
Brad Richmond, CFO<br />
Andrew H. Madsen, COO<br />
Ken Mills, V.P. of Marketing<br />
News & Other |<br />
Fish and seafood items are being removed from the menu because of concerns about the sustainability of certain species.<br />
According to a recent report in Science from leading ecologists and economists, it was theorized that the world would run out<br />
of seafood by 2048 if declines in marine species continue at the current rate. The report said that overfishing, pollution and<br />
other environmental factors are destroying wild fisheries and threatening the ocean’s ecological balance. The seafood industry<br />
has said that the study is too alarmist. Many restaurants, however, are making adjustments. Darden Restaurants, which owns<br />
Red Lobster, Olive Garden, Smokey Bones and Bahama Breeze brands, and Compass Group’s America division have both<br />
declared changes in seafood purchasing habits based on sustainability concerns. The study also found that nearly one-third of<br />
commercially fished species have already been depleted to the point where catches are now only 10% of historic highs. These<br />
include bluefin tuna, Atlantic cod, Pacific salmon and Alaskan king crab. The study also says that it is not too late to reverse<br />
the trends. Several environmental groups are working to help consumers, restaurants, distributors and retail stores make<br />
responsible choices. (Nation’s Restaurant News 11/27/06 p1)<br />
Rocky River Grillhouse is a new casual-dining restaurant from Darden Restaurants, and a possible replacement for its troubled<br />
Smokey Bones Barbecue & Grill concept. Darden is currently exploring opportunities to convert existing Smokey Bones units<br />
into the new Rocky River concept in select markets. Rocky River Grillhouse is a mountain lodge-themed restaurant with a<br />
menu offering flame-grilled steaks and seafood. Its dinner entrées range between $9 and $23, while lunch is priced between<br />
$8 and $10. Rocky River Grillhouse is located in Cuyahoga Falls, OH. (NRN.com 12/18/06)<br />
Darden Restaurants Inc. will convert all outlets of its Smokey Bones brand into its Rocky River Grillhouse format. There is<br />
currently a Rocky River prototype open near Cleveland. The converted units will be located in the Southwest, the Midwest and<br />
along the Atlantic seaboard. Darden operates 127 Smokey Bones restaurants nationwide. (NRN Daily NewsFax 1/15/07)<br />
Rocky River Grillhouse continues to grow, with two more units this spring being converted from the Smokey Bones barbecue<br />
concept. Operated by Darden Restaurants, Rocky River is being introduced in suburban areas outside of Indianapolis and St.<br />
Louis in April. Changes from the previous Smokey Bones format include the removal of all but one barbecue item from menus<br />
and the exclusion of mounted TVs, a main interior focal point at Smokey Bones. By contrast, Rocky River Grillhouse<br />
restaurants have more of the look and feel of a cocktail lounge. Darden anticipates ongoing growth of Rocky River and plans<br />
to convert several more Midwestern Smokey Bones units to the new concept beginning in June. (OrlandoSentinel.com<br />
3/22/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
604
Darden Restaurants is closing down its Smokey Bones chain. The company shuttered 54 Smokey Bones outlets and two test<br />
Rocky River Grillhouse restaurants. Darden plans to sell the remaining 73 Smokey Bones restaurants still in operation, located<br />
primarily on the East Coast. The move will allow Darden to continue to pursue the purchase of a casual-dining chain with high<br />
growth potential. In related news, the company has also closed nine Bahama Breeze locations in the Midwest and Southwest.<br />
Darden will keep the remaining 23 Bahama Breeze locations open. (Orlando Sentinel 5/08/07 & 5/09/07; NRN Daily NewsFax<br />
5/07/07; Nation’s Restaurant News Online 5/05/07; AFX International Focus 5/07/07; NRN Daily NewsFax 5/08/07;<br />
Indystar.com 5/03/07)<br />
Darden Restaurants Inc. has narrowed the field of bidders for its Smokey Bones Barbeque and Grill to an affiliate of Sun<br />
Capital Partners Inc. The Sun affiliate has taken unspecified steps to meet certain licensing requirements to facilitate a quick<br />
closing, Darden said. The Smokey Bones chain currently has 73 units. (Nation’s Restaurant News Daily NewsFax 11/08/07)<br />
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published.<br />
605
Smoothie King<br />
Headquarters<br />
121 Park Place, Covington, Louisiana 70433 USA<br />
Tel: (985)635-6973 Fax: (985)635-6987<br />
www.smoothieking.com<br />
Ownership: Private<br />
Segment: Limited Service Coffee/Beverage<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 116,038 110,650 102,650<br />
Company-owned ($000) 538 650 650<br />
Franchised ($000) 115,500 110,000 102,000<br />
U.S. Number of Units 449 380 352<br />
Company-owned 1 1 1<br />
Franchised 448 379 351<br />
International Sales ($000) 5,574 1,800 300<br />
International Units 16 10 3<br />
Average Sales/Unit ($000) 310 300 290<br />
Concept Positioning |<br />
Smoothie King is a limited-service chain that specializes in creamy drink blends with real fruit, fresh juices and a variety of<br />
protein powders, nutritional vitamins, herbs and other all-natural ingredients. Guests are given the choice of 40 original<br />
smoothie flavors that have one gram of fat or less. Each smoothie has a distinct flavor, and the beverages are designed to<br />
help boost and develop immune systems, lose weight or increase muscle mass.<br />
Units average 1,000-1,200 sq. ft. with limited seating available. They are typically located in high-traffic areas such as strip<br />
centers, malls, office parks and college campuses. Décor includes natural wood shelving, light pink walls and mauve-colored<br />
tile.<br />
Smoothie King first opened in 1973 in Metairie, LA, and was developed by Steve and Cynthia Kuhnau. The company sold the<br />
first franchise in 1989. Today there are over 340 units in 34 states. The chain has been rated number one in its category by<br />
Entrepreneur every year since 1992 and was also ranked the number one small business in America in 2002 by Small<br />
Business Opportunities Magazine. The company has not disclosed future expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Smoothie King offers more than 50 different smoothie flavors in 20-, 32- and 40-oz. sizes. Also featured are eight different<br />
specially formulated smoothie enhancers that can be added for additional fees, including Energy Boost, Diet Down, Stress<br />
Relief, Female Fit, Muscle Builder and The Works (multi-vitamin). The chain also offers lowfat muffins, high protein cookies<br />
and energy bars. Hot items include KingStix Gourmet Stuffed Breadsticks in Pizza, Spinach & Feta, Santa Fe and Apple<br />
Cinnamon flavors. A kids’ menu features Choc-A-Laka, Gimme-Grape, Berry Interesting and Smarti Tarti smoothies, all for<br />
$2.17. <strong>Menu</strong> prices range from $1.99–$8.99 and checks average $5.42.<br />
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published.<br />
606
Expansion Plans |<br />
Smoothie King opened its 500th unit on November 27 in Atlanta. To celebrate the grand opening, Smoothie King will give<br />
away a free smoothie on December 8 to guests who donate five canned goods at any U.S. Smoothie King unit. Canned goods<br />
collected will be given to the food bank in the community where they were collected. (Businesswire.com 11/27/07)<br />
<strong>Menu</strong> Development |<br />
Smoothie King has added a Pomegranate Punch smoothie and an Antioxidant Enhancer to its menu. Pomegranate Punch,<br />
new to the chain’s line of superfruit smoothies, is billed as antioxidant-rich and features a blend of pomegranate, banana,<br />
blueberry and apple. The Antioxidant Enhancer can be added as a shot to any smoothie and includes pomegranate, goji, acai,<br />
vitamins A, C, and E, and selenium. The new menu items will be available at all locations. (qsrmagazine.com 10/31/07)<br />
Personnel |<br />
Joel Meanriman, Controller<br />
Kenny Tuohy, Director of Marketing<br />
Rachel Bergeron, Director of Purchasing<br />
Bill Maisano, V.P. of Operations<br />
Steve Kuhnau, President<br />
Kelly Laterrade, V.P. Research & Development<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
607
SONIC Drive-Ins<br />
Headquarters<br />
300 Johnny Bench Drive, Oklahoma City, Oklahoma 73104 USA<br />
Tel: (405)225-5000 Fax: (405)225-5975<br />
www.sonicdrivein.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 3,404,430 3,120,200 2,761,365<br />
Company-owned ($000) 596,829 641,200 470,051<br />
Franchised ($000) 2,807,601 2,479,000 2,291,314<br />
U.S. Number of Units 3,224 3,065 2,917<br />
Company-owned 626 592 544<br />
Franchised 2,598 2,473 2,373<br />
International Sales ($000) - 5,000 3,400<br />
International Units - 8 7<br />
Average Sales/Unit ($000) 1,085 1,023 964<br />
Concept Positioning |<br />
SONIC Drive-In Restaurants is the largest drive-in chain in the U.S. SONIC offers made-to-order hamburgers and sandwiches,<br />
extra-long cheese coneys, onion rings and ice cream desserts. SONIC Corp. is the parent company of the chain. SONIC<br />
boasts a family-friendly, retro atmosphere. SONIC franchises 80% of its locations.<br />
Units are typically freestanding and average 1,450 sq. ft. The stores resemble a 1950s drive-in with canopied stalls that<br />
contain menu boards and speaker phones. Only a few units have indoor seating. Testing of mall and strip center locations has<br />
been underway for several years. In addition, select units have drive-through windows; most offer patio seating areas. One<br />
unit, located on the campus of the University of Houston, offers counter service, as well as indoor seating, outdoor seating and<br />
carryout. Stores are open seven days a week, typically from 10 a.m. to 11 p.m. for lunch, dinner and snacks. The units offer<br />
drive-in and carryout service, with roller-skating carhops bringing orders carside. Food is cooked to order with the average<br />
service time being under four minutes. The primary customer base consists of the 18–35 year old age group and young<br />
families.<br />
The business dates back to 1953, when Troy Smith Sr. and Charles Pappe opened a walk-up restaurant in Shawnee, OK,<br />
names Top Hat Drive-In. In 1958, the chain was renamed SONIC Drive-In. The present corporation was organized in 1973 as<br />
a public company. It was taken private in a leveraged buyout by senior management and outside investors in 1986 and then<br />
issued an IPO in February 1991, under the name SONIC Corp. The company plans to open between 180–200 units in fiscal<br />
2007, 150–160 of which will be franchised. SONIC has over 3,200 outlets coast-to-coast and in Mexico.<br />
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published.<br />
608
<strong>Menu</strong> Positioning |<br />
SONIC Drive-In restaurants feature a varied menu for breakfast, lunch and dinner. Its signature offering is its line of burgers.<br />
During the breakfast daypart, popular options include Toaster sandwiches with meat and egg, breakfast burritos, French toast<br />
sticks, and several breakfast combos. Lunch and dinner items include burgers, salads, Toaster sandwiches, wraps, chicken<br />
and coney dogs. Customer favorites include its SONIC Bacon Cheeseburger, Jumbo Popcorn Chicken Salad, Chicken Club<br />
Toaster sandwich, Grilled Chicken Wrap, Chicken Strip Dinner and Ex-Long Cheese Coney. Side items include onion rings,<br />
tater tots, French fries and mozzarella sticks. A Kid's menu includes Jr. Burger, corn dog, hot dog and chicken strips. Also<br />
offered are Fresh Taste Salads such as Grilled Chicken Salad, Jumbo Popcorn Shrimp Salad and Santa Fe Grilled Chicken<br />
Salad. Frozen Favorites include SONIC Blast, Shakes & Malts, CreamSlush Treat, Cream Pie Shakes, Floats/Blended Floats,<br />
Banana Splits, Sundaes and Vanilla Cone or Dish. Drinks include fresh fruit limeades and a variety of Coca-Cola soft drinks,<br />
coffee, iced tea in plain, raspberry and peach, and bottles water. <strong>Menu</strong> prices range between $1.49 and $8.99. Checks<br />
average $5.<br />
Expansion Plans |<br />
SONIC Drive-Ins will open a new restaurant in Pittsburgh this summer. (Bizjournals.com 1/4/07)<br />
Sonic Drive-In plans to add 25–35 units in Central Ohio by the end of the year, with the first outlet slated to open this month.<br />
The company has restaurants in other parts of the state, including suburban Cincinnati, Athens, Jackson and Nelsonville.<br />
(Columbus Business First 2/23/07)<br />
SONIC Drive-Ins is seeking a site to open a new unit in Greenwich, NJ, sometime in the future. (Nj.com 4/12/07)<br />
Sonic Drive-In opened a new restaurant last month in Sioux City, IA. The restaurant is the area’s first Sonic location.<br />
(Siouxcityjournal.com 7/9/07)<br />
SONIC Drive-Ins opened a unit in Coralville, IA, on August 31. The location features 21 drive-in stalls, two walk-up ordering<br />
stations and a hop-thru. The restaurant is owned by Iowa Drive Ins LLC. (Press-citizen.com 9/1/07)<br />
SONIC Drive-In plans to open a unit near Pittsburgh with franchise group NCH Hospitality. The unit is expected to open in<br />
December. SONIC Drive-In plans to open 15 more restaurants in the Pittsburgh area. (Wpxi.com 9/19/07)<br />
Promotion Plans |<br />
SONIC Drive-Ins teamed with USA Network for the restaurant to debut its sponsorship of Nashville Star, a country music<br />
series. The partnership also includes in-store, on-air and online promotional co-branded content. (Company Release 12/6/06)<br />
SONIC Drive-Ins began its “Who’s the Next Nashville Star?” sweepstakes on January 11. Customers who guess the winner of<br />
Nashville Star will be entered in the Grand Prize drawing. Five winners will receive a 2007 Chevy Silverado truck and a year’s<br />
supply of SONIC food and drink. Contestants can mail in the necessary information by February 16. (Company Release<br />
1/11/07)<br />
SONIC Drive-In offered free root beer floats in honor of summer on June 7 from 8 p.m. until midnight. The chain is giving<br />
consumers the message that when they need something sweet after dark, SONIC is the place to go. During June, the root<br />
beer float is 99¢. (Company Release 6/5/07)<br />
Sonic Drive-Ins will promote its new late-night schedule by co-branding TBS’ late-night movies. “Sonic Late Night Fun” will<br />
feature eight comedy films throughout July. TBS has developed several opportunities for Sonic, including sponsorship of “The<br />
Bill Engvall Show.” The promotion will also extend to the Internet on TBS.com and VeryFunnyAds.com through August. (Media<br />
Post Publications 7/11/07)<br />
<strong>Menu</strong> Development |<br />
Sonic Drive-In added the Full Throttle Fury Slush for a limited time. (Company Website)<br />
Sonic Drive-In is offering guests a BLT & Tropical Mango Tea combo for $2.99 for a limited time. The sandwich features<br />
bacon, lettuce and tomatoes on Texas Toast. (Company Website)<br />
Sonic introduced the Spicy Southwest SuperSonic Cheeseburger made with two patties topped with pepper Jack cheese,<br />
crispy jalapeño strips and creamy chipotle sauce. (Company Website)<br />
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published.<br />
609
Sonic added a Peach Smoothie and Peach Tea to its beverage menu. (Company Website)<br />
Sonic added an Extra-Long Bacon Cheddar Cheesesteak to its menu for a limited time. The sandwich features steak<br />
smothered with smoky Cheddar, crispy bacon, grilled onions and mayonnaise. (Company Website)<br />
SONIC Drive-In introduced Mac & Cheese Snacks for the month of November. The new snack features six bite-size pieces of<br />
fried macaroni and cheese for a suggested retail price of $2.49. (Company Release 11/01/07)<br />
Franchise Activity |<br />
Sonic expects to open 180–200 units in fiscal 2007, with 150–160 of these to be franchisee-owned. The company opened 173<br />
locations in fiscal 2006. (Foodservice Equipment Reports 10/06)<br />
Sonic Corp. inked a deal with NCH Hospitality to open an unspecified number of Sonic Drive- In outlets in Pittsburgh. The<br />
franchise group is looking for locations in several different areas of the city. Sonic expects to open at least 30 units in the<br />
Pittsburgh market over the next five to seven years. (Pittsburgh Business Times 1/04/07; Pittsburgh Tribune-Review 1/04/07)<br />
Sonic Drive-Ins franchisee BBC Restaurants plans to open 15 locations over the next five or six years in Pennsylvania<br />
throughout nine counties including Adams, Cumberland, Dauphin, Lebanon and York. The first of these locations will open in<br />
Lebanon County. (Bizjournal.com 7/16/07)<br />
Personnel |<br />
William T. Pierquet, S.V.P. of Development<br />
Clifford J. Hudson, CEO<br />
Stephen C. Vaughan, CFO<br />
Paul S. Sinowitz, V.P. of Purchasing<br />
Robert J. Geresi, V.P. of Operations<br />
V. Todd Townsend, CMO<br />
News & Other |<br />
SONIC Corp. reported for the first quarter ended November 30 net earnings increased 11% to $30.5 million from $27.6 million<br />
for the same period last year. Revenues grew 9% to $174.8 million from $159.8 million. Same-store sales rose 3.4%.<br />
(Company Release 1/3/07)<br />
SONIC Corp. reported for the second quarter ended February 28, net earnings decreased 51.9%, to $6.2 million, from $12.9<br />
million for the same period last year. Revenues increased 8% to $161.5 million from $148.9 million. Same-store sales rose<br />
2%. (Company Release 3/28/07)<br />
Sonic Corp.’s board of directors authorized an additional $75 million under the company’s stock repurchase authorization. In<br />
July, a $100 million share repurchase authorization was completed. For fiscal year 2007, stock repurchases by Sonic amount<br />
to 24 million shares totaling about $546 million. (Journalrecord.com 8/6/07)<br />
SONIC Drive-Ins reported its 21st consecutive year of positive same-store sales growth. For the fourth quarter ended August<br />
31, systemwide same-store sales growth remained within the target range of 2%–4% over year-before figures. Sales at<br />
partner drive-ins were slightly above the targeted range. (Company Release 9/6/07)<br />
SONIC Corp. will present at the Bank of America Investment Conference September 17–19 in San Francisco. The<br />
presentation by SONIC’s management is scheduled for September 18. It will be available to investors via live audio webcast,<br />
and available for replay on the company’s website through October 5. (Company Release 9/11/07)<br />
SONIC Corp. reported for the fourth quarter ended August 31 net earnings increased 17% to 34¢ per share from 29¢ per<br />
share for the same period last year. Revenues grew 13% to $224.3 million from $198 million. Same-store sales increased<br />
3.1%. For the year, net earnings increased 3.3% to 94¢ from 91¢ for the previous year. Revenues grew 10.4% to $646.9<br />
million from $585.8 million. (Company Release 10/15/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
610
Sonny's Real Pit BBQ<br />
Headquarters<br />
2605 Maitland Center Pkwy Suite C, Maitland, Florida 32751 USA<br />
Tel: (407)660-8888 Fax: (407)660-9050<br />
www.sonnysbbq.com<br />
Ownership: Private<br />
Segment: Full Service BBQ<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 290,000 288,430 275,000<br />
Company-owned ($000) 40,000 39,300 37,700<br />
Franchised ($000) 250,000 249,130 237,300<br />
U.S. Number of Units 150 149 153<br />
Company-owned 16 16 16<br />
Franchised 134 133 137<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,925 1,900 1,821<br />
Concept Positioning |<br />
Sonny's Real Pit Bar-B-Q is a chain of mid-scale family restaurants specializing in barbecue. Units offer full-service dining for<br />
both lunch and dinner, though the concept is also akin to quick-service operations because of its service speed. In addition,<br />
the chain does significant takeout and off-premise catering and believes that portion of the business will help strengthen its<br />
average unit sales volumes.<br />
The typical unit measures approximately 5,800 sq. ft. with seating for 180 guests. Exteriors are rustic red, with brick accents<br />
and contrasting wood trim. The roof is usually rimmed in neon and dominated by a large chimney. Interiors use earth colors to<br />
achieve a rustic, home-style look. Newer units include both booth and chair seating.<br />
Floyd E. "Sonny" Tillman opened the first Sonny’s in Gainesville, FL, in 1968. In 1977, the restaurant’s first franchise units<br />
began operation. Growth has been primarily through franchising. The corporation was acquired in 1988 and resold in 1991 to<br />
an ownership group headed by Robert Yarmuth, an Orlando franchisee, and renamed Sonny's Franchise Co. Since that time,<br />
management efforts have centered on improving franchisee relations, solidifying company standards, and formalizing<br />
systemwide marketing programs that support future growth and expansion.<br />
<strong>Menu</strong> Positioning |<br />
Sonny's menu features a variety of selections for lunch and dinner. The menu includes ribs, pork, chicken, sides, soups,<br />
salads and combos. Signature items include Sonny’s Pulled Beef Brisket, Chicken Tenders, Sweet & Smokey Ribs, St. Louis<br />
Cut Ribs, Baby Back Ribs, Bar-B-Q Sliced Pork and Charbroiled Chicken. Newer menu items include chicken wings,<br />
macaroni& cheese and fruit cobbler. Side items include Crinkle Cut french fries, Sonny’s Southern Green Beans, Special<br />
Recipe Potato Salad, garlic bread and corn on the cob. The kids’ menu features chicken tenders, Bar-B-Q beef or pork, hot<br />
dogs, hamburgers and smoked turkey. Domestic and imported beer is served. <strong>Menu</strong> prices are between $1.95–$17.50.<br />
Checks average $8.<br />
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published.<br />
611
<strong>Menu</strong> Development |<br />
Sonny’s Real Pit BBQ introduced several new salads. They include Bar-B-Q Salads, consisting of fresh greens, tomatoes,<br />
cucumber and green peppers with a choice of pulled pork, sliced pork, sliced beef, pulled beef brisket or smoked turkey;<br />
Sonny’s Chicken Salads, featuring fresh greens, tomatoes, cucumber and green peppers with a choice of charbroiled chicken,<br />
fried chicken tenders or homemade smoked chicken salad; and Chicken Caesar Salads, with romaine lettuce, house Caesar<br />
dressing, croutons, grated Parmesan and a choice of charbroiled chicken or fried chicken tenders. (Company Website)<br />
Sonny’s Real Pit BBQ introduced its All-You-Can-Eat Sweet & Smokey Ribs. The buffet is available for a limited time.<br />
(Company Website 3/27/07)<br />
Sonny’s BBQ will switch to a zero-trans-fat cooking oil. The restaurant chose soybean oil that will not alter the taste of the<br />
food. A timeline for the switch was not given. (Prnewswire.com 4/24/07)<br />
Personnel |<br />
Jeff Yarmuth, COO/President<br />
News & Other |<br />
Sonny’s BBQ’s franchise company revamped its website. It now features new music and a creative design that focuses on<br />
catering services and fun. It also highlights the restaurant’s overall expansion strategies for 2007 and shows the new<br />
architectural design of the new units, which will include outdoor patios and full bars. The company plans to remodel several<br />
existing locations as well as developing about 10 prototypes. It aims to target a broader audience. The restaurant have also<br />
added a few new menu items, such as big salads, macaroni & cheese, chicken wings and fruit cobbler. (Company Website<br />
4/17/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
612
Souplantation & Sweet Tomatoes<br />
Headquarters<br />
15822 Bernardo Center Dr. Suite A, San Diego, California 92127 USA<br />
Tel: (858)675-1600 Fax: (858)675-1616<br />
www.souplantation.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria/Buffet<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 228,000 225,000 223,000<br />
Company-owned ($000) 228,000 225,000 223,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 99 97 97<br />
Company-owned 99 97 97<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,325 2,310 2,300<br />
Concept Positioning |<br />
Souplantation and Sweet Tomatoes restaurant is a limited-service, buffet-style chain of casual-dining restaurants with a varied<br />
menu. The concept emphasizes fresh, made-from-scratch, high-quality foods at affordable prices. Operating as Souplantation<br />
in Southern California and as Sweet Tomatoes in other parts of the country, restaurants provide cafeteria-like service and are<br />
open for lunch, dinner and Sunday brunch. The menu offers an extensive salad bar with over 50 items, soups, pastas, muffins<br />
and desserts. Garden Fresh Restaurant Corp. is the parent company of Souplantation and Sweet Tomatoes and owns 100%<br />
of its units. Souplantation and Sweet Tomatoes boasts 100 locations in 15 states across the Western and Southern portions of<br />
the U.S.<br />
Units are freestanding suburban buildings or located within strip malls or shopping centers. The units average 7,400 sq. ft. and<br />
seat approximately 210. The contemporary décor is accented with unfinished, natural-colored woods, high-vaulted ceilings<br />
with exposed beams and duct work, concrete flooring, high windows, metal fixtures and updated logo graphics and two 55-ft.-<br />
long salad bars. Soft seating features colors of sage green and ochre. These updated units have a more modern farmer’s<br />
market theme emphasizing the fresh produce and wholesome foods. The restaurants offer cafeteria style buffets. The limited<br />
service restaurants are open for lunch, dinner and some locations even offer Sunday brunch.<br />
Souplantation was founded in 1978 in San Diego, CA.The first Sweet Tomatoes was opened in Tampa in 1990. Tony Brooke<br />
and Michael Mack, two former management consultants, purchased the chain in 1983 for $2 million. The chain is operated by<br />
parent company Garden Fresh Restaurant Corp., which, after an initial public offering in 1995, returned to private company<br />
status in 2004. In order to expand its brand it adopted the Sweet Tomatoes brand for locations outside of Southern<br />
CaliforniaThe company currently operates 100 restaurants in 15 states. Steady growth in planned in the foreseeable future.<br />
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published.<br />
613
<strong>Menu</strong> Positioning |<br />
Souplantation & Sweet Tomatoes locations are open for lunch, dinner and Sunday brunch. The varied menu showcases a<br />
large selection of soups, salads, pasta, and bakery items. Customers serve themselves and create their own meal from among<br />
menu items that are prepared daily from scratch. Signature items offered include Arizona Chili, Baked Potato & Cheese with<br />
Bacon soup, Sweet Tomato Onion soup, Ambrosia with Coconut salad, BBQ Potato salad, Chinese Krab salad, Tuna<br />
Tarragon salad, 4-Cheese Alfredo pasta, Creamy Herb Chicken pasta and Linguini with Clam sauce pasta. Favorite bakery<br />
items include Banana Nut Muffin, Buttermilk Biscuits, Caribbean Key Lime Muffin, Bruschetta Focaccia and Zucchini Nut<br />
Muffin. The menu also offers an extensive collection of desserts including Apple Cobbler, Butterscotch Pudding, and Oatmeal<br />
Raisin cookies. No alcohol is served. Family and Party sized servings are available at special prices. <strong>Menu</strong> Prices range from<br />
80¢–$9.29. Checks average $12.50.<br />
Promotion Plans |<br />
Garden Fresh Restaurant Corp. has started a Passport <strong>Menu</strong> promotion to add international dishes at its Souplantation and<br />
Sweet Tomatoes buffet chains. The menu additions will change every two weeks to feature dishes from countries such as<br />
Italy, Greece, Mexico, Thailand and India. (NRN Daily NewsFax 7/30/07)<br />
<strong>Menu</strong> Development |<br />
Sweet Tomatoes is offering a Create Our Delicious Chicken Pot Pie In Your Bowl soup. The soup features a warm, freshbaked<br />
buttermilk biscuit and Chicken Pot Pie Stew. The item is available through November 30. (Company Release 11/15/06)<br />
Souplantation and Sweet Tomatoes plan to introduce several international dishes beginning August 1. The chains will feature<br />
new entrées every two weeks from various international destinations. Countries to be featured include Italy, Greece, India,<br />
Thailand and Mexico. (NRN Daily NewsFax 7/30/07)<br />
Souplantation/Sweet Tomatoes is offering two new items until October 31. The items are Buffalo Chicken Salad and Buffalo<br />
Chicken Foccaccia on honey-wheat crust. (Company Website 10/3/07)<br />
Personnel |<br />
Greg Keller, COO/President<br />
Michael Mack, CEO<br />
David Qualls, CFO<br />
Susan Hoffman, V.P. of Purchasing<br />
Ken Kean, V.P. of Marketing<br />
News & Other |<br />
Souplantation’s location in Lake Forest, CA, has been closed after an employee and a customer contracted E. coli. The<br />
restaurant location was linked to at least 12 instances of E. coli in late March and closed on April 6. Three of the initial victims<br />
were hospitalized. (NRN Daily NewsFax 4/11/07)<br />
Souplantation’s parent company, Garden Fresh Restaurant Corp., is being sued by a 72-year-old woman who claimed to have<br />
suffered kidney failure from contracting E. coli at a Souplantation location in Lake Forest, CA. The woman was hospitalized;<br />
however, her tests were not initially positive for the bacteria. The unit has been closed since April 6 and there have been 15<br />
confirmed cases of E. coli originating at Souplantation. (NRN Daily NewsFax 4/18/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
614
Starbucks<br />
Headquarters<br />
2401 Utah Ave. S. Suite 800, Seattle, Washington 98134 USA<br />
Tel: (206)447-1575 Fax: (206)447-0828<br />
www.starbucks.com<br />
Ownership: Public<br />
Segment: Limited Service Coffee/Beverage<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 7,037,088 5,789,566 4,804,140<br />
Company-owned ($000) 5,784,816 4,760,512 4,025,453<br />
Franchised ($000) 1,252,272 1,029,054 778,687<br />
U.S. Number of Units 9,401 7,661 6,376<br />
Company-owned 6,010 5,028 4,394<br />
Franchised 3,391 2,633 1,982<br />
International Sales ($000) 2,668,525 2,133,785 1,790,612<br />
International Units 3,767 3,140 2,573<br />
Average Sales/Unit ($000) 1,057 1,016 960<br />
Concept Positioning |<br />
Starbucks Coffee is the largest specialty coffee chain in the U.S. Its overall goal is to be the leading retailer and brand of<br />
coffee in each of its target markets. Starbucks, named for the first mate in Herman Melville’s Moby Dick, offers more than 30<br />
blends and single-origin coffees as well as bakery goods, sandwiches and merchandise. Starbucks has more than 10,000<br />
stores in all 50 U.S. states and the District of Columbia, and operates in 41 international countries.<br />
Retail stores vary in size from 300–1,700 sq. ft. Most have limited seating available. The units are designed to be sophisticated<br />
and inviting. A theatrical atmosphere is created with sleek black stools, mahogany trim on counter tops and opera or jazz<br />
music filling the air. Exteriors are unique and designed to be in character with its neighborhood. Typically clustered in high<br />
traffic areas, many are located in urban and suburban office buildings. The company's two smaller prototypes are designed for<br />
high-traffic, space-controlled areas such as office lobbies, grocery stores, hospitals, etc. Both carry a full line of its beverages<br />
but have limited selections of whole beans and accessories. Approximately 40% of sales occur before 11 a.m. Coffee<br />
beverages account for 69% of retail sales; 10% of sales come from whole bean coffee; 15% comes from food items; and<br />
coffee-related hardware accounts for 6% of sales.<br />
Starbucks has a network of coffee brokers that look for the pick of the crop in the world's coffee-producing countries, buying<br />
only arabica beans to handle the roasting of its "full-city" process. Roasting is handled in the company plants so that its<br />
emphasis on quality can be maintained. Stores receive fresh supplies of whole-bean coffee at least twice a week as the end<br />
product of the roasting process has a short shelf life.<br />
The company also holds the patent on a brewing system that provides constant delivery of three different coffees to spigots<br />
throughout the store. Water is filtered to ensure a uniform taste. The beans are ground immediately before the coffee is<br />
brewed. In addition, special paper cups, treated with a polymer that ensures no flavor transfers, are used for individual cup<br />
sales.<br />
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published.<br />
615
Also, Starbucks has developed other ventures, such as its Pepsi Cola/Frappucino Coffee drink, a joint undertaking and that is<br />
sold in supermarkets. Other ready-to-drink retail items include the Starbucks DoubleShot espresso drink and bottled Starbucks<br />
Frappaccino brands. Another enterprise is a joint venture with Dreyers Ice Cream to market a line of seven different coffeeflavored<br />
ice creams. A licensing agreement with Kraft Foods, Inc. in 1998 has brought the Starbucks brand into the<br />
grocery/retail channel as well. In addition to the presence of Starbucks' prepackaged goods in grocery/retail stores, the chain<br />
continues to expand by opening grocery-based units. In early 2006, Starbucks announced its intent to launch nearly 50 new<br />
units inside of Stop & Shop supermarkets in New York and New Jersey, with additional sites planned throughout New England<br />
through 2007. In addition, coffee-related products, hardware and equipment are also carried in each of its stores, including its<br />
private line of Starbucks Barista home espresso machines and coffee brewers and grinders.<br />
The company dates back to 1971. Howard Schultz joined it in 1982 and bought it in 1987 under the Il Giornale company. In<br />
1992, an initial public offering of 2.1 million shares was tendered. In mid-1994, acquisition of The Coffee Connection, Boston,<br />
was completed. It also acquired a minority interest in Noah's New York Bagels, now part of Einstein Bros./Noah’s New York<br />
Bagels, in 1996. In 1998, the company acquired Seattle Coffee Holdings Ltd., London, in a stock deal as a means to gain an<br />
immediate presence in the U.K. and a base for future expansion into other European markets. In late 1998 and early 1999,<br />
Starbucks announced more acquisitions: Pasqua Coffee, San Francisco, and Tazo, Portland, OR. Pasqua is a 48-unit coffee<br />
chain and Tazo is an upscale tea operation. In 2003, Starbucks acquired Seattle Coffee Company, which includes Seattle's<br />
Best Coffee and Torrefazione Italia Coffee, from AFC Enterprises for $72 million. In 2006, Starbucks announced that the<br />
company will acquire 11 Peaberry Coffee shops in Colorado. That same year, Starbucks acquired 40 company-owned<br />
Diedrich Coffee and Coffee People units for $13.5 million.<br />
Starbucks also entered into agreements with grocers Albertsons, Inc. and Safeway, as well as with hospitality companies,<br />
such as Hyatt Hotels Corp. and Marriott International, Inc. Besides expanding its market share, the chain has also begun<br />
offering its customers wireless Internet access in 2001. In 2004, Starbucks partnered with Hewlett Packard to launch its Hear<br />
Music CD burning service, a retail digital music service available to Starbucks customers. In addition, Hear Music<br />
Coffeehouses were launched by Starbucks in San Antonio, TX, and Miami. The first Hear Music Coffeehouse, which offers<br />
over one million music tracks for customers to sample and burn, opened in Santa Monica, CA, in 2004.<br />
Starbucks is eyeing China for aggressive expansion. The company estimates that China will eventually be its second-largest<br />
market outside of the U.S. There are currently fewer than 300 Starbucks outlets in operation in China. The United Kingdom is<br />
a booming market for Starbucks, with nearly 200 units located in London alone. Starbucks has planned new units for Brazil,<br />
Central America, India and Russia, which are scheduled to debut in late 2007 or early 2008. Domestically, Starbucks is<br />
currently targeting Chicago for expansion with plans to add 250 units in the city over the next five years. Starbucks’ worldwide<br />
goal is the operation of 45,000 units. The company has estimated the launch of 100 new units per year over the next five<br />
years. In addition, the company has identified its drive-thru prototype as being crucial to growth of the chain. Over the past 12<br />
months, Starbucks has launched over 350 drive-thru stores. Drive-thru locations now comprise 15% of all domestic units.<br />
<strong>Menu</strong> Positioning |<br />
Starbucks' menu features a variety of gourmet coffees, sold by the cup or by the bag, cappuccinos, frappucinos, as well as a<br />
line of Tazo teas. All drinks are available in sizes Tall (small), Grande (medium) and Venti (large). Also available are bakery<br />
items, pastries, and dessert snacks, such as cupcakes (Vanilla Sunshine or Chocolate Chocolate) and cookies. In early 2006,<br />
Starbucks announced a partnership with Kellogg's to market Grani, a cup filled with low-fat granola, steamed milk and a variety<br />
of add-ins like fruit and caramel sauce, with plans to eventually rollout the product in supermarkets. Other new retail items<br />
include ready-to-drink Starbucks Iced Coffee beverages, available in an 11-oz. can in both regular and light versions.<br />
Signature items include Caramel Macchiato, Caffe Mocha, Caramel Apple Cider and Vanilla Latte, all served hot or cold. In<br />
2006, Starbucks announced that the chain will add one new drink to its menu per season. Favorite food items include Sesame<br />
bagel, Vanilla Almond Biscotti, Iced Lemon Pound Cake and Raspberry Scone. Starbucks has also increased the number of<br />
stores that menu hot breakfast and lunch sandwiches. Stores in major markets such as New York, Chicago, San Francisco<br />
and Washington, D.C. have offered Starbucks' warm food line since mid-2006. The breakfast sandwich selection includes<br />
Peppered Bacon, Egg & Cheddar Cheese; Sausage, Egg & Cheddar Cheese; Reduced Fat Turkey Bacon, Cholesterol-Free<br />
Egg & Reduced Fat White Cheddar Cheese; and Virginia-Style Ham & Fontina Cheese. Lunch sandwiches now available<br />
either hot or cold include Tomato Mozzarella Basil and Chicken Cheddar Club. Other new menu additions in 2006 included its<br />
new yogurt parfait with layers of fruit and granola. No alcohol is available in units. Starbucks Cream Liqueur is now available in<br />
more than 35 U.S. markets. Starbucks partnered with Jim Beam to produce the liqueur, which will be sold in bars, liquor stores<br />
and restaurants. Starbucks also responds to seasonal tastes by offering special beverages and baked goods during colder<br />
months, such as its Maple Streusel Muffin, Maple Macchiato and Pumpkin Spice Latte. <strong>Menu</strong> prices are from 90¢–$5.95.<br />
Checks average $4.38.<br />
Expansion Plans |<br />
Starbucks plans to open a kosher café in Oak Park, IL, featuring kosher creamers and milk. The company has city approval,<br />
but hasn’t signed a lease agreement. (Freep.com 11/10/06)<br />
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published.<br />
616
Starbucks Corp. plans to open 2,400 stores in 2007. Within seven years, the company plans to have 20,000 worldwide.<br />
Starbucks expects China to be its biggest market outside the U.S. (Company Release 11/13/06)<br />
Starbucks plans to develop at least 40,000 more outlets over the medium term. Half of the stores will be outside of the U.S.,<br />
with 10–12 units per year to open in Spain. (Reuters 3/13/07)<br />
Starbucks opened a new café in Lake St. Louis, MO, on March 22. The new unit has a drive-thru window and an outdoor patio.<br />
(Bizjournals.com 3/19/07)<br />
Starbucks Corp. will build a roasting plant in St. Matthews, SC, by the end of this year. The 150,000-sq.-ft. plant is slated to be<br />
operating by early 2009. The new plant will help the company meet increasing demand for its coffees and will allow it to<br />
support growth in the Southeast. Starbucks already operates four roasting plants, including U.S. plants in Washington,<br />
Pennsylvania and Nevada and one in Amsterdam, the Netherlands. (Puget Sound Business Journal 4/9/07)<br />
Starbucks opened its new coffeehouse in Russellville, AL, on June 8. The location features a drive-thru, café tables and<br />
chairs, upholstered furniture and an outdoor patio. The menu consists of pastries, merchandise and handcrafted beverages,<br />
including specialty coffee. (Couriernews.com 6/7/07)<br />
Starbucks has postponed or pulled out on at least six leases for stores around the Twin Cities, MN, area. The company has<br />
opened four locations in Minnesota this year. (Bizjournals.com 7/27/07)<br />
Starbucks Corp. plans to double its 106 Michigan stores over the next five years. This is according to Great Lakes regional<br />
vice president Joe Dallacqua. Despite a competitive Michigan market, which includes Dunkin Donuts, Coffee Beanery, and<br />
Caribou Coffee, Starbucks still has plenty of room to grow due to high customer demand, says Dallacqua. (crainsdetroit.com<br />
10/30/07)<br />
Starbucks plans to double its store count in Michigan over the next five years from the current total of 106 units. The state has<br />
been targeted as an area for growth despite its highly competitive coffee market. (Crain’s Detroit Business Online 10/29/07)<br />
Promotion Plans |<br />
Starbucks has begun to celebrate the holidays on November 9 with holiday coffee drinks, Christmas décor and free gifts. The<br />
company is paying for cab rides in San Francisco and Boston and is handing out subway passes in New York. The company is<br />
also giving out “cheer passes,” cards that are given to someone for whom you are also doing a good deed. The “cheer passes”<br />
come with unique numbers that can be tracked online. (Seattletimes.com 11/9/06)<br />
Starbucks’ viral holiday promo rewards good deeds. The coffee chain is handing out goodies such as movie tickets in Chicago,<br />
ski lift tickets in Denver, skating passes in Toronto and transit cards in New York City, along with samples of its holiday<br />
beverages, bags of coffee and $5 Starbucks Cards, to encourage its customers to do good deeds for others. Starbucks<br />
employees witnessing a customer doing a good deed in their unit, such as holding the door open or buying another patron’s<br />
coffee, give the customer a numbered card tracking device called a Cheer Pass along with instructions to log onto Starbucks’<br />
special holiday website to share their story. Starbucks customers can also download from the site Cheer Passes to e-mail or<br />
otherwise pass on to friends to create a pay-it-forward “cheer chain.” Over the eight weeks of the holiday season, Starbucks<br />
expects to distribute at least half a million passes. (Advertising Age 11/09/06)<br />
Starbucks is promoting its Loyalty Card as a stocking stuffer for the holidays. During last year’s holiday season, customers<br />
activated 15 million cards that earned the company $170 million when they were redeemed. (Company Release 12/3/06)<br />
Starbucks filed two appeals in South Korea’s highest court claiming a local brand should change its logo and name because<br />
they infringe on Starbucks’ trademarks. The local brand’s name is “Starpreya” and its logo consists of a green circle<br />
surrounding a woman’s face. (Seattlepi.com 12/21/06)<br />
Starbucks planned to offer free 12-oz. cups of coffee on March 15 between the 10 a.m. and noon. The coffeehouse set the<br />
hours to highlight what is described as America’s need for a coffee break before lunch to “revitalize and refresh.” (Company<br />
Release 3/13/07)<br />
Starbucks launched its “Green Umbrellas for a Green Cause” campaign and auction to support Global Green USA. The<br />
campaign features sales of new beverages such as Orange Crème Frappuccinos and Orange Mochas and umbrellas<br />
designed by hand by celebrities such as Chad Lowe, America Ferrera and Lawrence Bender. The umbrellas will be auctioned<br />
to the public beginning May 21 and the new drinks will be available beginning May 15. The profits will be donated to Global<br />
Green USA. Starbucks will also make a $25,000 donation to the cause. Global Green USA is a national leader in advocating<br />
for smart solutions to global warming. (Company Release 5/15/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
617
Starbucks hosted a “Global Listening Event” featuring Paul McCartney’s new album. “Memory Almost Full” was played in early<br />
June in more than 10,000 Starbucks stores in 29 countries and territories worldwide, with an estimated six million people<br />
listening to McCartney’s album. Participating locations in New York, Philadelphia, Miami, Atlanta, Seattle, Los Angeles,<br />
London, Berlin, Hong Kong and Tokyo offered patrons the chance to film a birthday message for McCartney for his 65th<br />
birthday on June 18. (Restaurants & Institutions Online 5/17/07)<br />
Starbucks, along with its new partners Paramount Classics and National Geographic Films, will create awareness of climate<br />
issues with the film “Arctic Tale.” Starbucks will bring the story to its customer base to help educate people about the climate<br />
crisis and inspire them to be a part of a solution as well as generate interest in the film. The company will feature in-store<br />
marketing efforts for the film from July 31 to August 27 in its U.S. and Canadian markets. The film opens everywhere on<br />
August 17. (Company Release 6/28/07)<br />
Starbucks is planning a promotion for a new wireless music download partnership with Apple iTunes in October. Customers<br />
will receive a “Song of the Day” card they can then redeem on iTunes for a free song download chosen by Starbucks. The<br />
promotion will run from October 2–November 7 and the song cards will be valid until the end of 2007. (Promomagazine.com<br />
9/25/07)<br />
Starbucks will release a CD by newcomer Hilary McRae on its Hear Music label in spring 2008. McRae, a 21-year-old R&Binfluenced<br />
singer-songwriter, will be the first developing artist released on Hear Music, the label launched by Starbucks and<br />
Concord Music Group earlier this year. Previous artists released through the label include Paul McCartney and Joni Mitchell.<br />
Starbucks is offering 1.5 million downloads of McRae’s “Consider Me Gone” beginning November 1 as part of its “Song of the<br />
Day” promotion. (entertainment.tv.yahoo.com, billboard.biz.com 10/30/07)<br />
Starbucks Corp. is slated to launch its first ever national TV ad campaign. The first of three animated 30-second spots will air<br />
on cable networks November 16. Two additional spots will launch November 26. Some of the ads are expected to air on<br />
network TV. The ad campaign will have a “Pass the Cheer” theme intended to help the company reach out to a broader<br />
audience. (Adage.com 11/16/07)<br />
<strong>Menu</strong> Development |<br />
Maple is being used as an ingredient instead of just as syrup on top of pancakes, waffles and French toast. Starbucks recently<br />
added two maple-flavored espresso drinks, a latte and a macchiato, combining coffee and milk with maple flavors. The coffee<br />
chain also rolled out maple-streusel muffins and maple-oat scones. At select 7-Eleven units, diners on the go can grab one of<br />
the company’s Maple Sausage Roll Ups, a handheld link sausage wrapped in a French-toast-battered flour tortilla. At the<br />
University of Tulsa in Tulsa, OK, students can dine on maple-glazed, pecan-crusted chicken breast in an apple, cranberry and<br />
orange sauce. In Portland, OR, Wildwood serves a maple-roasted local pear with a gingersnap-vanilla ice cream sandwich. At<br />
Cobblestone’s of Lowell in Lowell, MA, guests can dine on maple-cured, house-smoked salmon with lemon crème fraîche,<br />
capers and challah bread. Leunig’s Bistro in Burlington, VT, menus a house salad of baby greens, Belgian endive and parsnip<br />
frites topped with maple vinaigrette. (Restaurants & Institutions 10/30/06)<br />
Starbucks introduced its new Eggnog Latte, Gingerbread Latte and Peppermint Mocha. It is also offering Cranberry Bliss Bars<br />
and Gingerbread Loaf Cake. (Company Release 11/27/06)<br />
Starbucks is removing trans-fat from its menu items in half of the company’s U.S. locations beginning January 3. The transition<br />
includes salad dressings, baked goods and sandwich spreads. (NRN Daily NewsFax 1/3/07)<br />
Starbucks reintroduced its Cinnamon Dolce Latte with Sugar-Free Syrup. The item features a blend of cinnamon, brown sugar<br />
and butter paired with sweet espresso, steamed milk and topped with Cinnamon Dolce sprinkles and whipped cream.<br />
(Company Release 1/3/07)<br />
Starbucks is starting to use milk and other dairy products free of rBGH, an artificial growth hormone used in dairies to increase<br />
milk production. Fluid milk, half-and-half, eggnog and whipped cream are all being purchased rBGH free in January for the<br />
5,500 U.S. company-owned outlets. The switch comes after Starbucks was targeted by consumer groups critical of rBGH. The<br />
chain has increased its hormone-free supply of dairy produces to 37% from 27% at the end of 2006. Starbucks currently<br />
provides artificial hormone-free dairy products at units in Northern California, New England, New Mexico, Montana, Oregon,<br />
Washington, Idaho and Alaska. (Yahoo! News 1/16/07; NRN Daily NewsFax 1/17/07)<br />
Starbucks is testing the use of 2% milk instead of whole milk in its coffee products. The test is running in about 300 companyowned<br />
stores. In related news, the chain recently announced plans to switch to dairy products derived from hormone-free<br />
cows. This will include fluid milk, half-and-half, eggnog and whipped cream. (Seattle Post-Intelligencer 2/2/07; NRN Daily<br />
NewsFax 1/17/07; Yahoo! News 1/16/07; NRN Daily NewsFax 2/7/07)<br />
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published.<br />
618
Starbucks is offering its breakfast sandwiches at select drive-thrus in Chicago; Los Angeles; Indianapolis; Seattle; Portland,<br />
OR; Washington, D.C.; and Charlotte, NC. The coffee chain began selling the breakfast sandwiches in its stores last year. The<br />
company says it had always planned to serve the items at its drive-thrus. (Crain’s Chicago Business 1/29/07)<br />
Starbucks rolled out Dulce de Leche Latte and Dulce de Leche Frappuccino in stores. The new beverages took the coffee<br />
chain 18 months to develop. The company plans to more than its triple annual sales to $23.3 billion by 2012. (BusinessWeek<br />
4/09/07 p56)<br />
Starbucks introduced Latin American coffees, pastries, espresso, music and merchandise on April 3. Items include mango<br />
pineapple empanadas, Reduced Fat Banana Dulce Coffeecake, dulce de leche beverages and Costa Rican ceramics and art.<br />
The dulce de leche Latte and Frappuccino combine milk caramel and Starbucks’ signature coffee. (Company Release 4/3/07)<br />
Starbucks Coffee Co. plans to remove trans fats from foods and beverages in its outlets in the continental U.S., Alaska and<br />
Canada by year’s end. The company started eliminating trans fats in its U.S. and Canadian stores earlier this year. Trans fats<br />
eventually will be removed from Starbucks’ Hawaii stores as well, but it will not happen by year’s end because the state is<br />
being shifted from the international division to the domestic division. (NRN Daily NewsFax 5/08/07; BusinessWeek.com<br />
5/07/07)<br />
Starbucks debuted several new limited-time beverages for the summer. New selections include Orange Crème Frappuccino<br />
Blended Crème, mixing orange syrup and milk with ice and topped with whipped cream and orange zest sauce made from real<br />
orange juice and bits of zest; Orange Mocha, mixing espresso with bittersweet mocha syrup, orange syrup and steamed milk<br />
topped with whipped cream and orange zest sauce; and Iced Orange Mocha, espresso with mocha syrup, orange syrup, cold<br />
milk and ice finished with whipped cream and orange zest sauce. (Company Website)<br />
Starbucks plans to use reduced-fat milk in all of its espresso-based drinks in its U.S. and Canadian locations by the end of<br />
2007. New York City was the first to switch, on June 5. In addition, the company is assessing options for switching to lower fat<br />
dairy in its international markets. When tested in certain markets earlier this year, reduced-fat milk received a positive<br />
response. (Businesswire.com 5/31/07)<br />
Starbucks will drop the Jones Soda line that it has been selling to make way for salads, sandwiches and other lunch items.<br />
Starbucks has been expanding its food offerings and currently offers warm breakfast and lunch sandwiches. (NRN Daily<br />
NewsFax 6/15/07)<br />
Starbucks is changing all espresso-based drinks from whole milk to 2% after testing the idea in 300 company owned stores.<br />
Stores in Oregon; Orange County, CA; Jacksonville, FL; and London, Ontario received positive responses, encouraging the<br />
company to make the test a permanent policy in these locations. Furthermore, Starbucks will use hormone-free milk products<br />
in all its stores by the end of the year. (Seattlepi.com 5/31/07)<br />
Starbucks Corp. plans to sell four or five different varieties of salads at its U.S. stores. Offerings will include Curried Chicken<br />
and Asian Sesame-Noodle salads. The items are priced at $6. (TheNewsTribune.com 6/18/07)<br />
Starbucks has expanded its lunch offerings with the addition of a new Tomato Mozzarella Salad and Corn and Black Bean<br />
Salad with Grilled Chicken. Starbucks is adding the new items at the 4,400 units in the U.S. that offer lunch. In addition, the<br />
chain has added several regional specialties to its lunchtime menu at select units, in order to reflect the particular preferences<br />
of customers in various markets. These selections include White Chicken Curry with Couscous, Albacore Tuna Penne,<br />
Champagne Pasta Salad, Bowtie Pasta with Goat Cheese and Asian Sesame Noodle Salad. In beverage development,<br />
Starbucks has introduced new raspberry-flavored mocha beverages, including the new Raspberry Mocha Frappuccino,<br />
Raspberry Mocha Frappuccino Light and Iced Raspberry Mocha. (Company Release 6/26/07)<br />
Starbucks is removing a line of Jones Soda products to create more room for salads, sandwiches and other food items in its<br />
refrigerated display cases. This change is part of Starbucks’ initiative to expand its breakfast and lunch food menu and obtain<br />
sales beyond coffee. (Seattle Post-Intelligencer Online 6/13/07; NRN Daily NewsFax 6/15/07; The News Tribune Online<br />
6/18/07)<br />
Starbucks rolled out two new berry-flavored beverages for the summer, Raspberry Mocha Frappuccino and Iced Raspberry<br />
Mocha. The chain also offers Raspberry Mocha Frappuccino Light with 1/3 less calories. (Company Website)<br />
Starbucks rolled out two new yogurt parfaits, Peachy Raspberry and Strawberry Banana. (Company Website)<br />
Starbucks increased the number of its lunch offerings. New choices include Tomato Mozzarella Insalata, White Chicken Curry<br />
with Couscous, Bowtie Pasta with Goat Cheese, Asian Sesame Noodle Salad and Fiesta Salad with grilled chicken over corn<br />
and black beans. (NRN Daily NewsFax 6/27/07; Reuters 6/26/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
619
Starbucks is offering 2% milk for drinks in addition to whole- and skim-milk options. The change is effective at all U.S. and<br />
Canadian stores after its successful three-month launch at 220 stores in Oregon; Orange County, CA; Jacksonville, FL; and<br />
Ontario, Canada. (The Seattle Times Online 7/29/07)<br />
Starbucks teamed with New York chef/restaurateur Marcus Samuelsson to develop coffee blends and bakery items that will be<br />
launched this fall. The chain also acquired the rights to be the exclusive seller of Samuelsson’s new cookbook, “Discovery of<br />
the Continent: Foods, Flavors and Inspirations from Africa.” Samuelsson helped Starbucks create its chocolate cinnamon<br />
bread and caramelized apple pecan coffeecake. (NRN Daily News Fax 8/29/07)<br />
Starbucks is considering adding new drinks or drink sizes marketed to the chain’s under-18-year-old clientele. Other possible<br />
changes include a new advertising campaign that depicts Starbucks as a family destination and placing the store’s signature<br />
line of teddy bears in an easily accessible location for children. The coffee chain has shied away from actively advertising to<br />
the younger demographic because of public concerns about youths drinking too much sugar and caffeine. Currently, only milk<br />
and hot chocolate are listed as kids’ drink items. (MSNBC.com 9/10/07)<br />
Starbucks menued a Pumpkin Spice Latte for fall. The beverage contains a blend of pumpkin and fall spice flavors combined<br />
with espresso and steamed milk. Whipped cream and pumpkin pie spices top the latte. (Company Website)<br />
Starbucks launched a “Limited Reserve” coffee line in grocery stores, offering limited-time-only coffees from the Latin America,<br />
Africa/Arabia, and Asia/Pacific regions. The line includes ready-to-drink coffees and a “drinking chocolate” line. (Company<br />
Release 10/17/07)<br />
Franchise Activity |<br />
Starbucks signed an agreement with AmRest Restaurant Group to open coffeehouses in the Czech Republic, Poland and<br />
Hungary. The first units could be built in Poland within eight or 10 months after the agreement is finalized. Financial details<br />
were not disclosed. (Associated Press 3/29/07)<br />
International Activities |<br />
Starbucks has bought the High Grown Investment Group Ltd., a Hong Kong-based company that had a controlling interest in<br />
the chain’s licensee for Beijing and Tianjin. This acquisition will allow for the coffee chain to rapidly expand in Beijing before<br />
the 2008 Olympics. Starbucks has 60 units in Beijing and Tianjin and a total of 430 in China. In other news, Starbucks has<br />
raised its beverage prices in Japan by 40 yen (U.S. 34¢) a cup. This is the first rate hike for the company since it opened its<br />
first store in Japan 10 years ago. (Nation’s Restaurant News Online 11/02/06; StarTribune.com 10/24/06; NRN Daily NewsFax<br />
10/25/06; Reuters 10/25/06)<br />
Starbucks is looking to expand into India, a country where it currently has no units. Indian news outlets speculated that the<br />
chain may enter into an agreement with Planet Retail Holdings. The first unit in India would potentially open next year.<br />
Starbucks said in a financial release earlier this year that it was looking to open stores in India, Brazil, Russia and Egypt by the<br />
end of 2007. (Forbes.com 10/24/06)<br />
Starbucks will open its first two locations in Sao Paulo, Brazil, this week. The units will be located in the Shopping Morumbi<br />
mall. (Bizjournals.com 11/30/06)<br />
Starbucks has opened its first two locations in São Paulo, Brazil, in a shopping mall and at a bookstore. The company<br />
announced earlier this year plans to open at least 20,000 international units. (Company Release 11/30/06)<br />
Starbucks in the Forbidden City palace in Beijing is considering closing after protests saying the coffeehouse’s presence is<br />
ruining Chinese culture. The palace is currently under renovation that had already removed one-third of the stores. (Company<br />
Release 1/18/07)<br />
Starbucks Corp. is still waiting to learn whether or not it will be able to open stores in India. company submitted a proposal to<br />
the Indian government, but the government has put the proposal on saying that the coffee chain has not provided enough<br />
information about its plan. The commerce and industry ministry of India was not sure if Starbucks was looking to only open<br />
coffee shops or if it wanted to also operate a chain of restaurants. Until 2006, India did not allow foreign companies to open<br />
retail stores. Starbucks is planning to open outlets in New Delhi and Mumbai. (BusinessWeek.com 1/10/07; The Seattle Times<br />
1/10/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
620
Starbucks Corp. has lost its appeal in South Korea’s highest court, seeking to prevent locally based Elpreya Co. from using its<br />
Starpreya name and logo. Starbucks argued that Elpreya infringes on the U.S. company’s trademarks. According to court<br />
documents, Starbucks registered the Starbucks word mark, Starbucks Coffee word mark and Starbucks Coffee logo before the<br />
registration of the Starpreya name. Starpreya sells its coffee from about 60 roving trucks. (Bloomberg.com 1/12/07; Seattle<br />
Post Intelligencer 12/21/06)<br />
Starbucks Corp. expects to remove trans fats from its products in China within the next six months. This move follows the<br />
company’s recent announcement that it would eliminate trans fats at its U.S. units. In other news, the company’s outlet in<br />
Beijing’s Forbidden City may be removed. A Chinese blogger charged the company with being disrespectful of Chinese<br />
heritage by operating a unit there and many other protesters have joined in his demand to shut the café down. Forbidden City<br />
authorities are debating whether or not to force Starbucks to leave after six years of operation. (ChinaDaily.com 2/08/07; Wall<br />
Street Journal 1/19/07)<br />
Starbucks plans to open 10–12 units in Spain per year. (Yahoo! News 3/13/07)<br />
Starbucks opened its first outlet in Bucharest, Romania, in a shopping mall, in partnership with Marinopoulos Holding SARL.<br />
Marinopoulos partners with the coffee chain in several other countries, including Austria, Cyprus, Greece and Switzerland.<br />
(Company Release 4/16/07; Foodservice Equipment & Reports 4/25/07)<br />
Starbucks Coffee signed an agreement with AmRest Holdings to open outlets of the coffee chain in Poland, the Czech<br />
Republic and Hungary. AmRest hopes to debut the first Starbucks in Poland within the next eight to 10 months. AmRest is<br />
also a Yum! Brands and Burger King franchisee. (NRN Daily NewsFax 3/30/07)<br />
Starbucks Corp. expects about 20% of its international growth to occur in China this year. Currently, there are more than 500<br />
Starbucks locations in China, about 300 of which have opened over the past two years. The company wants to add at least<br />
200 more by 2008. (NRN Daily NewsFax 5/11/07)<br />
Starbucks launched its new Starbucks Discoveries coffee drink on May 8 in South Korea. The ready-to-drink beverage is<br />
offered in Milano Espresso and Seattle Latte flavors. The beverages are also available in the refrigerated cases of<br />
convenience stores, hypermarkets and supermarkets. The launch of the drink is Starbucks’ first attempt to enter the fresh<br />
chilled cup coffee segment of the ready-to-drink category in South Korea. The product has only a 14-day shelf life, one of the<br />
shortest on the market today. (Company Release 5/8/07)<br />
Starbucks will revise its application for entry into India, after its initial application was stalled by India’s Department of Industrial<br />
Policy and Promotion. Government officials in India require foreign firms to apply via a foreign direct investment route, which<br />
Starbucks’ growth plans did not adhere to; the chain wanted to operate in India under a joint venture with an Indonesian<br />
franchisee. Starbucks has re-filed its application, opting to franchise instead. (Yahoo! News 6/27/07)<br />
Starbucks closed a coffeehouse in China’s former imperial palace in Beijing, ending a seven-year run that sparked protests by<br />
critics who said it ruined the image of a historical site. The company closed the unit on July 13 after Forbidden City managers<br />
insisted all shops on its grounds were to operate under the palace’s name brand. (Wall Street Journal 7/16/07)<br />
Starbucks is beginning its expansion efforts into Colombia after awarding a franchise agreement to a local entrepreneur. The<br />
Seattle-based company has expressed interest in the Colombian market in the past but never attempted to penetrate the<br />
major coffee-producing country. Starbucks opened its first Latin American coffee shop in Mexico City in 2002 and has<br />
gradually expanded into Chile, Peru, Brazil and the Caribbean. (The Wall Street Journal Online 8/10/07)<br />
Starbucks will open its first coffee shop in Russia in September. The coffee shop will be located in the Mega Mall north of<br />
Moscow. The company has been trying to enter the Russian market since 1997, when it first registered its trademark.<br />
Starbucks lost the right to the brand in the market to a Moscow lawyer in 2002, but the ruling was later overturned. (Iht.com<br />
8/20/07)<br />
Starbucks is opening its first Russian location in Khimki’s Mega Mall north of Moscow after losing its trademark rights in the<br />
country a decade ago. The chain lost its right to the brand after a Moscow lawyer who specializes in claiming unused<br />
trademarks won the rights to it from the state patents chamber. The ruling was overturned last year. Starbucks recently<br />
opened stores in Brazil and Egypt and has a long-term goal of 40,000 cafés globally, with half of them located outside the U.S.<br />
(International Herald Tribune Online 8/20/07; Boston.com 9/6/07)<br />
Starbucks Coffee Co. launched a new subway opera ad campaign in China today. The “subopera,” titled “A Sunny Day,” is a<br />
full-length feature film with Starbucks tie-ins. It will be broadcast in installments on thousands of flat-screen monitors<br />
throughout Shanghai’s subway system beginning in mid-November. The campaign is intended to introduce bottled Starbucks<br />
Frappuccino drinks to the Chinese market. (Wall Street Journal 11/01/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
621
Starbucks Corp. plans to move into Argentina in 2008. The company has signed a joint-venture agreement with Alsea S.A. de<br />
C.V. to form Café Sirena S.R.L. The new venture will operate Starbucks locations throughout Argentina, with the first unit<br />
slated to open in Buenos Aires in the second half of fiscal 2008. The joint venture will also further develop the Starbucks brand<br />
in Chile. (QSRmagazine.com 11/16/07)<br />
Starbucks plans to open 100 stores in the U.K. and Ireland in 2008, 25% more than it opened in 2007. The company is also<br />
considering selling its frappuccinos in supermarkets. (Timesonline.co.uk 11/21/07)<br />
Starbucks plans to add more than 80 new stores in Greater China before the end of its fiscal year in late September of 2008.<br />
The coffee chain has set a goal of opening more stores in the current year than were opened in the previous year. In its last<br />
fiscal year, Starbucks opened 80 units in Greater China. It currently has 300 stores in China and close to 15,000 locations<br />
worldwide. In addition, Starbucks is now offering its bottled Frappaccino coffee drinks in its Chinese stores. The product’s<br />
introduction is the result of a joint venture between Starbucks and PepsiCo, which has extensive beverage distribution<br />
channels in China. (Market Watch Online 11/1/07; Yahoo! Finance 11/1/07)<br />
Starbucks is planning to open a farmer-support center in Addis Ababa, Ethiopia in 2008. The center’s goal will be to help<br />
growers improve the quality of their coffees and to boost production using sustainable practices. Starbucks has a similar<br />
center in Costa Rica. In addition, Starbucks plans to intensify its promotion of Ethiopian coffees in 2008. (Smartbrief.com<br />
11/28/07, IHT.com 11/28/07)<br />
Technology |<br />
Starbucks introduced a service that allows U.S. customers to get the address of the chain’s closest location by text messaging.<br />
Patrons can text the zip code of their current location to “MYSBUX” from a cell phone. PDA customers with web-enabled<br />
phone or handheld computers can also go the company website to get the address. (NRN Daily NewsFax 3/07/07; Mercury<br />
News 3/08/07)<br />
Starbucks is partnering with Apple to offer free wireless browsing, previewing and downloading of music from the iTunes Wi-Fi<br />
Music Store using iPods, iPhones or any computer with iTunes software. The service will begin in October at New York and<br />
Seattle Starbucks locations, and will expand to San Francisco, Los Angeles, Chicago and additional markets in2008. Music<br />
prices will stay the same as those in the regular iTunes store, but Starbucks will no longer require a connection fee.<br />
(MediaPost Publications 9/6/07)<br />
Personnel |<br />
Jim Donald, CEO<br />
Martin Coles, COO<br />
Launi Skinner, V.P. of Development<br />
Peter Bocian, E.V.P./ CFO<br />
Dorothy J. Kim, V.P. of Supply Chain Operations<br />
Starbucks hired Peter Bocian as chief financial officer. Previously, Bocian served as senior vice president and chief financial<br />
officer for NCR, a computer-services provider. (Associated Press 4/3/07)<br />
Starbucks hired Martin Coles as Chief Operating Officer. Previously, Coles served as President for Starbucks Coffee<br />
International. Coles will bring global expertise as the company expands in the next four to five years. (Company Release<br />
7/17/07)<br />
News & Other |<br />
Starbucks has denied claim of ownership to any regional names used to describe its coffees and claims that it never filed an<br />
opposition to the Ethiopian government’s trademark. The company prides itself on being a positive force to the Ethiopian<br />
coffee farmer. (Company Release 10/26/06)<br />
Starbucks reported for the fourth quarter ended October 1 net earnings fell 5.2% to $117.3 million. Revenues increased 20.7%<br />
to $2 billion. (NRN Daily NewsFax 11/17/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
622
Starbucks Corp. is being called into question by Oxfam America and the government of Ethiopia over its relationship with<br />
Ethiopian coffee farmers. Oxfam recently placed ads in the Seattle Times and Seattle-Post Intelligencer asking the company to<br />
sign a licensing agreement that would give Ethiopia legal ownership of the coffee names through the use of a trademark.<br />
Starbucks said that it believes this agreement might actually hurt Ethiopian farmers. The company says it pays premium prices<br />
for Ethiopian coffee and has increased the price paid by approximately 50% over the past four years. Starbucks said that it<br />
would like to work with the country to develop a geographic certification for the coffee bean names. (Puget Sound Business<br />
Journal 11/02/06; Yahoo! News 10/26/06)<br />
The University of Wisconsin at Whitewater has opened Food for Thought in its Andersen Library. The café, operated by<br />
Chartwells Dining Services, is one of four new dining options designed to compensate for the temporary closing of the James<br />
R. Conner University Center and its foodservice options. Food for Thought sells salads, pre-packaged sandwiches, bagels,<br />
muffins and a variety of beverages through a Starbucks outlet. (Food Management 10/06 p24)<br />
F.D.A. awarded Sodexho USA a $5 million, eight-year contract to run the foodservice operations at White Oak Complex in<br />
Silver Spring, MD. Sodexho will manage a cafeteria and coffee bar featuring Starbucks coffee and build an additional cafeteria<br />
for the complex. This agreement is one of several government-related contracts that Sodexho has made during 2006. (NRN<br />
Daily NewsFax 12/08/06; Company Release 12/07/06)<br />
Starbucks unveiled a vending machine that will dispense gourmet hot beverages in 9-oz. single-serving steel cans that feature<br />
insulated labels. The machine was developed through a partnership with PepsiCo. The system heats the can immediately<br />
before delivery and takes less than a minute. Drinks will be priced at $2.50 and the machine will accept cash or credit cards for<br />
payment. Beverages being offered include Caffe Latte, Vanilla Latte, Caffe Mocha, Caffé Mocha Light and Hot Cocoa. The<br />
companies expect to roll out the vending system in 2007. (Automatic Merchandiser 11/06 p10; Vending Times 11/06 p8)<br />
Starbucks is closing units inside Jewel supermarkets early this year. The coffee chain currently has outlets operating in 13<br />
Jewel supermarkets in the Chicago area. Starbucks plans to continue to open cafés in Chicago-area Dominick’s Finer Foods.<br />
There are currently 50 Dominick’s locations with Starbucks outposts. (Crain’s Chicago Business 12/19/06)<br />
Starbucks is now paying 11% more for its coffee than it did last year. (Bizjournals.com 1/18/07)<br />
Starbucks Corp. reported for the first quarter ended December 31 net earnings increased 18% to $205 million from $174<br />
million for the same period last year. Revenues increased 22% to $2.4 billion from $1.9 billion. Same-store sales grew 6%.<br />
(Company Release 1/31/07)<br />
Starbucks will offer “My Starbucks” t-shirts. The t-shirts are personalized, featuring the customer’s favorite cup of coffee. The<br />
shirts will be available from February 15 to February 28. (Company Release 2/15/07)<br />
Starbucks will double its coffee purchases from East Africa by 2009. (Company Release 2/15/07)<br />
Starbucks chairman Howard Schultz sent a memo to executives stating that the company’s rapid expansion had led to a<br />
“watering down” of the brand. Schultz believes that the automatic espresso machines, bagged coffee and “cookie-cutter” store<br />
designs have made the chain sterile and have invited competition from quick-service companies and others. A Starbucks<br />
spokesperson confirmed the authenticity of the memo. (CNNMoney.com 2/23/07; Advertising Age 2/26/07 p3; The Wall Street<br />
Journal 2/24-25/07 A4)<br />
Starbucks is contesting an Indian entrepreneur’s plans to open a chain of coffee shops named Starstrucks. Starbucks told<br />
India’s Controller-General of Patents, Designs and Trademark that the suggested name was very similar to its own name.<br />
Starstrucks’ creator is unwilling to change the name and plans to open 25 units in India this year that will feature a glamour<br />
theme with posters of movie stars. (Reuters 3/05/07; Asia Pulse 3/15/07)<br />
Starbucks’ financial situation is due to get worse because of McDonald’s announcement that it will sell specialty coffees<br />
between $2 and $3, compared to Starbucks’ $3-and-over lattes. McDonald’s specialty coffees will be served from a pushbutton<br />
machine which is faster than Starbucks’ method of baristas. Starbucks is trying to save money by sending its<br />
shareholders a coupon for two free coffee-drip drinks instead of the customary annual $3.50 gift card. (Company Release<br />
3/6/07)<br />
Starbucks and Concord Music Group have created a new record label. Hear Music will forge relationships with artists and<br />
distribute recordings at Starbucks coffeehouses and through radio channels. (Company Release 3/12/07)<br />
Starbucks Corp. and Concord Music Group are launching Hear Music, a new record label. The companies have produced<br />
recordings together in the past. Hear Music will work with established artists as well as up-and-coming ones. Paul McCartney<br />
is the first artist to be signed to the new label. The companies plan to sell the records in Starbucks coffee shops as well as<br />
through traditional music retailers. (Chicago Sun-Times 3/13/07; CNN.com 3/13/07; NRN Daily NewsFax 3/14/07; Financial<br />
Times 3/21/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
623
Starbucks reported for the second quarter ended April 1 net earnings rose 18% to $151 million from $127.3 million for the<br />
same period last year. Revenues increased 20% to $2.3 billion from $1.9 billion. Same-store sales grew 4%. (Company<br />
Release 5/3/07)<br />
Starbucks Corp. made a deal with Ethiopian coffee farmers that will allow the farmers to control the names of their coffees,<br />
including Harar, Sidamo and Yirgacheffe. The deal marks the end of the disagreement the two parties had for the past few<br />
months. The agreement is expected to be signed sometime this month. (Bizjournals.com 5/3/07)<br />
Starbucks teamed with XM Satellite Radio to sell a CD produced by XM with music from its blues channel. The two<br />
companies, along with Concord Music Group, released Bluesville CD on May 15 in Starbucks locations. Artists featured on the<br />
CD include Memphis Slim, Mildred Anderson, Furry Lewis, Sonny Terry. Roosevelt Sykes, Odetta, Lightnin’ Hopkins and Willie<br />
Dixon. (Bizjournals.com 5/8/07)<br />
Starbucks is being challenged by a Spanish startup company called Fon. Fon has been giving away Wi-Fi routers to<br />
Starbucks’ neighbors nationwide under a marketing campaign titled “Fonbucks.” The company’s plan was to get Fon routers<br />
close to Starbucks customers trying to connect to a wireless network. Fon offered them the option of paying $2 a day for Fon<br />
Wi-Fi access or $10 for Starbucks T-Mobile access. Starbucks responded by saying that an increase in Wi-Fi spots was a<br />
good thing and that its T-Mobile HotSpot service allows customers to access the internet in the comfort of Starbucks<br />
coffeehouses in far more locations. (Advertising Age 4/30/07 p10)<br />
Starbucks is being hurt by rising ethanol production. The U.S. ethanol industry will produce more than 5 billion gallons and use<br />
more than 1.5 billion bushels of corn. This, in turn, causes feed to rise, and dairy farmers are finally pushing the costs onto<br />
customers by increasing the price of dairy products. The increased milk bill will surely raise prices for Starbucks customers,<br />
who will stop demanding the coffee. (Forbes.com 5/18/07)<br />
Starbucks gave a $10,000 grant to Biddeford Intermediate School and Loranger Middle School fifth graders to spend the night<br />
at Ferry Beach Ecology School this fall. In addition, $2,500 from the Ecology School’s Program Fund will also fund the trip.<br />
Around 250 students will stay at the school and take part in hands-on lessons at ecosystems including sand dunes, beach and<br />
forest. The students will also have a chance to bond with their classmates, teachers and parent chaperones during the Food<br />
for Thought program during meals. (Maine News Direct 6/7/07)<br />
Starbucks Corp. has agreed to pay $85,000 to settle a lawsuit by the U.S. Equal Employment Opportunity Commission<br />
claiming disability discrimination. The suit was filed after Starbucks fired a Seattle barista with bipolar disorder. It claims that<br />
Starbucks had given Christine Drake extra training and support for more than two years while she worked at a Seattle<br />
Starbucks coffeehouse, but new management for the store stopped the support and fired her. The company agreed to pay<br />
Drake $75,000 and give $10,000 to the Disability Rights Legal Center, which provides lawyers for low-income disabled people<br />
involved in bias lawsuits. In addition, Starbucks agreed to train its managers about illegal discrimination and for the next year,<br />
to notify the EEOC of any disability discrimination complaints involving the company. (NRN Daily NewsFax 6/14/07)<br />
University of North Carolina-Chapel Hill is converting its End Zone sports café into a Starbucks by late September. The<br />
university also intends to open either a Subway or a Quiznos by fall 2007. (FoodManagement.com 5/07)<br />
Alpha Airports has signed a deal with Starbucks to open the coffee chain in airports in the U.K. The first store will open in<br />
October at Jersey Airport. (CatererSearch.com 5/14/07)<br />
Starbucks and Cracker Barrel Old Country Store and Restaurant are the only two out of 50 chain restaurants studied that fully<br />
satisfied customer’s need for food quality, speed, cleanliness, friendliness and hospitality. More than 3,000 people were asked<br />
by Kanbay Research Institute to rate chains based on these factors. Though fast-food, casual-dining and upscale restaurants<br />
all experienced declines in consumer satisfaction since the 2005 survey, fast-food chains dipped the least in 2006. (Chicago<br />
Tribune Online 5/19/07)<br />
Starbucks’ label Hear Music will sign Joni Mitchell to sell her comeback album “Shine” in Starbucks’ stores in September. The<br />
album consists of 10 songs, nine of which Mitchell wrote herself. Mitchell is the first of two artists that will be signed this year<br />
by Hear Music. The label plans to sign eight artists in 2008. (Associated Press 7/25/07)<br />
Starbucks has raised the price of all beverages by an average of 9¢ a cup to compensate for the rising costs of dairy products<br />
and other commodities. All 6,300 company-owned stores in the U.S. increased their prices. The coffee chain last increased its<br />
prices in October 2006 by approximately 5¢. Bottled drinks, whole-bean coffee and food items are unaffected by the price<br />
increase. (ABCNews.com 7/24/07; Seeking Alpha 7/24/07)<br />
Starbucks reported for the third quarter ended July 1 net earnings increased 17% to $158.3 million from $145.5 million for the<br />
same period last year. Revenues rose 20% to $2.4 billion from $2.0 million. Same-store sales grew 4%. (Company Release<br />
8/1/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
624
Nashville International Airport has opened four restaurants in phase one of a three-part concession development program.<br />
HMSHost Corp. has an 11-year contract to develop new food and beverage venues for the airport. Baja Burrito, Famous<br />
Famiglia Pizzeria, Quiznos Subs and Burger King are the first restaurants to open in the C Concourse Food Court. They will<br />
be followed by two Starbucks Coffee units, Noshville Delicatessen, Jack Daniel’s Tennessee Tavern, Neely’s Barbeque,<br />
Gibson’s Guitar Café and Provence Breads & Café. HMSHost operates in more than 100 airports worldwide. (PR Newswire<br />
Online 8/14/07)<br />
Hershey Co. and Starbucks are teaming up to sell coffee-flavored chocolate products in retail stores beginning in the fall. The<br />
chocolates will be based on coffee flavors featured at Starbucks and will also include fruit, nuts, herbs and spices.<br />
(Forbes.com 7/19/07)<br />
Starbucks will have shops in Great Atlantic & Pacific Tea Co Inc. grocery stores as soon as November. A&P will operate the<br />
Starbucks locations under a licensing deal. The first locations are slated to open in New Jersey. (Reuters.com 8/30/07)<br />
Starbucks teamed with Kraft Foods Inc. to add several varieties of Starbucks coffee to the Tassimo single-cup brewing system<br />
in the U.S. and Canada. Beginning in December, consumers will be able to buy Starbucks’ House Blend, Breakfast Blend,<br />
Caffe Verona and Africa Kitamu to use in Tassimo coffee machines. Kraft currently handles the sales and marketing for<br />
Starbucks coffee in supermarkets and club stores in the U.K., U.S. and Canada. (Chicagobusiness.com 9/4/07)<br />
Starbucks Corp. sold $550 million in 10-year senior notes, with the proceeds slated for debt repayment and share<br />
repurchases. Starbucks earned $545.3 million after fees. (Nation’s Restaurant News 9/3/07)<br />
Starbuck Corp. is predicting a shortage of premium arabica beans for the chain’s competitors due to an increasing worldwide<br />
demand for premium coffees. The company told Reuters that Starbucks’ 14,000 units will not be affected by the shortages<br />
because of its longstanding relationships with growers of premium coffees. (Nation’s Restaurant News Online 9/7/07)<br />
Starbucks is hiring 180 employees after opening 31 units in southern Florida in the past year. The chain plans to open an<br />
additional nine locations in Miami-Dade, Broward and Palm Beach counties within the next three months. Starbucks’ work<br />
schedule and benefits package are the same for part- and full-time employees. (Miamiherald.com 9/24/07)<br />
College libraries are opening Starbucks outlets inside their facilities to keep students from going to nearby wired coffee shops<br />
to study. Approximately 30 colleges now offer Starbucks in school libraries, including California State University at Long Beach<br />
and University of South Florida in Tampa. Many academic libraries with Starbucks have noted increased business as well as<br />
decreased spillage and book damage since students are no longer hiding food and drinks. (USA Today Online 10/1/07)<br />
Starbucks has recalled its plastic children’s cups. The company said that when the cup is dropped, the face on the cup can<br />
break off and leave small parts or sharp edges that can pose a choking or laceration hazard. Starbucks is recalling four styles,<br />
including “Dash” Green Turtle; “Dot” Red Ladybug; Bunny Pink; and Chick Yellow. The cups were sold for $6 in Starbucks<br />
locations from May through August. (Company Release 10/9/07)<br />
Starbucks temporarily closed 120 of its units in San Diego, CA, due to the fires in Southern California. (NRN Daily NewsFax<br />
10/24/07)<br />
HMS Host Corp. has partnered with Sammy Hagar to introduce a new island-style café at the Kahului Airport in Maui, Hawaii.<br />
Sammy’s Beach Bar and Grill will be a full-service restaurant with a beach-inspired casual atmosphere, and will feature signed<br />
memorabilia from Hagar’s personal collection. The bar and grill is slated to open in early 2008. It is one of four new HMS Host<br />
dining venues slated to open at the airport. The other additions include a Jamba Juice, a Starbucks and a California Pizza<br />
Kitchen. (Businesswire.com 11/07/07)<br />
Starbucks has rolled out an Espresso Experience for the holidays. The coffee chain is now offering the Sirena, a $599 highend<br />
home espresso machine available at select stores and online. Starbucks says the machine helps deliver “’behind the bar’<br />
taste and the Starbucks experience at home.” In addition, the company has introduced Espresso Regalo, its first new espresso<br />
blend in 30 years. Regalo, a mixture of roasted Ethiopia Yirgacheffe and Costa Rica central valley 100% certified organic<br />
arabica beans, is available in half-pound bags and retails for $8.95. (Businesswire.com 11/15/07, Company Website 11/15/07)<br />
Starbucks Corp. reported a 35% increase in fourth-quarter earnings over the same period last year despite its first ever drop in<br />
U.S. customer traffic. The company says the 1% decrease in traffic over the fourth quarter was due largely to the economic<br />
slowdown coupled with the company’s recent price hikes. For the quarter ended September 30, net income was $159 million,<br />
up from $117 million for the previous year. Same-store sales rose 4%, helped by added food options, music sales and<br />
international expansion. Despite the drop in traffic, value per transaction increased by 4%. In the wake of the economic<br />
slowdown and the emergence of new high-end coffee competitors like McDonald’s and Wendy’s, Starbucks has lowered by<br />
100 its projected new U.S. store openings for 2008. The company also lowered its forecasted earnings per share for fiscal<br />
2007. The company had projected revenue growth of 17% to 21% per share, but has pared that down to 17% to 18%.<br />
(Marketwatch.com 11/16/07, abcnews.com 11/16/07)<br />
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published.<br />
625
Starbucks is considering acquiring Godiva from Campbell Soup. The Seattle-based coffee chain has expressed an interest in<br />
the chocolatier and is now in the second round of negotiations to buy the brand. Starbucks may partner with a private-equity<br />
firm for help with the purchase. Other companies interested in Godiva are Hershey and Wm. Wrigley Jr. Campbell put Godiva<br />
up for sale in August and could receive as much as $800 million for the deal. (The Wall Street Journal Online 11/2/07)<br />
Starbucks may end up in court over an antitrust suit filed by a competitor. On November 29, a U.S. District Court judge in<br />
Seattle tentatively set a November trial date for a lawsuit filed last year by Penny Stafford, owner of Belvi Coffee and Tea<br />
Exchange in Bellevue, WA. Stafford claims that Starbucks locked her out of prime market space because the company holds<br />
exclusive leasing agreements with area developments. Stafford seeks unspecified damages and a federal injunction to stop<br />
Starbucks from entering into exclusive leasing arrangements with developers. (Seattletimes.com 9/26/06, NRN.com 11/29/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
626
Steak and Ale<br />
Headquarters<br />
6500 International Pkwy. Suite 1000, Plano, Texas 75093 USA<br />
Tel: (972)588-5000 Fax: (972)588-5325<br />
www.steakandale.com<br />
Ownership: Private<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 105,000 104,000 106,500<br />
Company-owned ($000) 105,000 104,000 106,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 60 60 64<br />
Company-owned 60 60 64<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,700 1,680 1,640<br />
Concept Positioning |<br />
Steak and Ale restaurants are full-service, casual-dining restaurants inspired by English country inns. The fine dining<br />
atmosphere projects English charm and offers upscale lunch and dinner options at casual prices. The restaurant seeks to<br />
target customers between the ages of 30 and 64. Steak and Ale is owned and franchised by Metromedia Restaurant Group,<br />
the multiconcept operator of such national chains as Bennigan’s Grill & Tavern, Ponderosa, Bonanza and its newest, 29<br />
Degree Tavern. Steak and Ale is a national chain with more than 60 locations.<br />
Nearly all the units are freestanding and many are located in metropolitan areas. The design allows for a number of<br />
operational initiatives as well as space accommodation from freestanding to retail center sites to hotel locations. Steak and Ale<br />
is in the process of building a new prototype in an effort to modernize the brand. Units average approximately 6,250 sq. ft. in<br />
size with seating for 200–225 patrons in small, intimate dining areas. Its newest prototype averages 6,440 sq. ft. with seating<br />
for 231 guests. Enhancements to the English Tudor-style decor will feature lighter colors, a stone facade, higher ceilings and<br />
updated lighting fixtures.<br />
Steak and Ale was founded in 1966 in Dallas by Norman Brinker. It went public in 1971, was acquired in 1976 by The Pillsbury<br />
Co. and then divested in 1989. Benale Holdings Corp. was formed in February 1989 to acquire the chain's corporate entity; it<br />
was acquired in 1992 by the Metromedia Co. for some $423 million. In September 2003, Metromedia announced a strategic<br />
partnership with APEX Restaurant Group, based in Irving, TX. Headed by Mark Bromberg and John Todd, APEX handles dayto-day<br />
operations of Metromedia brands. APEX is also manager of Semolina in Louisiana and Left of Albuquerque. The<br />
company has not disclosed any specific expansion plans.<br />
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published.<br />
627
<strong>Menu</strong> Positioning |<br />
Steak and Ale features two menus for lunch and dinner. Its menu items include appetizers, soups, salads, burgers, steaks,<br />
seafood and pasta entrées. The restaurant’s signature item is the Signature Herb Roasted Prime Rib. Some popular lunch<br />
items include Cheesy Garlic Loaf, Baked Stuffed Mushrooms, Unlimited Salad bar, BBQ Glazed Chicken, Bleu Bacon Burger,<br />
Top Sirloin, Grilled Salmon, and Spicy Grilled Chicken Pasta. Some popular dinner items include Pan-Seared Crab Cakes,<br />
Shrimp Cocktail, Filet Mignon, Garlic Sirloin, Grilled Pork Chop, Rock Sole Andre, Top Sirloin and Lobster Tail, and Shrimp<br />
Pasta with Garlic Cream. Side items such as Burgundy Mushrooms, mashed potatoes, vegetable medley and rice pilaf are<br />
available. A kid’s menu offers burgers, Hawaiian chicken, macaroni and cheese, pizza, and chicken tenders. A variety of<br />
dessert options are available including 1001 Chocolate Chip Cake, Cheesecake, Chocolate Chip Cookie Sundae, Carrot<br />
Cake, French Silk Pie and Petite Apple Pie. Full liquor service includes premium spirits, domestic and imported beers and<br />
wine, as well as “Classic Cocktails”, a collection of specialty martinis. <strong>Menu</strong> prices are between $2.99 and $22.99. Checks<br />
average $21.50.<br />
Expansion Plans |<br />
Metromedia Restaurant Group regrouped its 321 Bennigan’s units and 62 Steak and Ale outlets under the newly created<br />
Metromedia Casual Dining division. The existing Metromedia Family Steakhouse will oversee the Ponderosa and Bonanza<br />
restaurants. (NRN Daily NewsFax 11/21/06)<br />
Promotion Plans |<br />
Steak & Ale is offering a free dessert to customers who bring in a special coupon. The offer is available until September 25<br />
with the purchase of one adult entrée. (Company Website 9/11/07)<br />
<strong>Menu</strong> Development |<br />
Steak and Ale added Braised Pork Osso Bucco for $11.99 for a limited time. The dish includes tender braised pork on a bed of<br />
mashed potatoes, topped with a portabella mushroom sauce. (Company Website)<br />
Personnel |<br />
Flynn Dekker, S.V.P. of Marketing<br />
David Sollorzano, V.P. of <strong>Menu</strong> Development<br />
Vince Runco, CEO<br />
Jeff Wilson, CFO<br />
John Sailing, COO<br />
Metromedia Restaurant Group has promoted Flynn Dekker to senior vice president of marketing. Dekker will continue to<br />
oversee the company’s Steak and Ale and The Tavern brands, and will take over responsibility for the Ponderosa and<br />
Bonanza steakhouse brands. Dekker succeeds Steve Walsh, who resigned. (Nation’s Restaurant News 11/07/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
628
Steak n Shake<br />
Headquarters<br />
500 Century Building 36 S. Pennsylvania St., Indianapolis, Indiana 46204<br />
USA<br />
Tel: (317)633-4100 Fax: (317)633-4105<br />
www.steaknshake.com<br />
Ownership: Public<br />
Segment: Full Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 714,000 680,568 639,130<br />
Company-owned ($000) 635,000 603,068 549,130<br />
Franchised ($000) 79,000 77,500 90,000<br />
U.S. Number of Units 483 448 425<br />
Company-owned 434 399 365<br />
Franchised 49 49 60<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,525 1,550 1,500<br />
Concept Positioning |<br />
Steak n Shake is a full-service family-dining chain specializing in "steakburgers" that are freshly hand-made, cooked to order<br />
and served alongside homemade milkshakes. Steak n Shake units serve breakfast as well as lunch (approximately 36% of<br />
sales) and dinner (approximately 44% of sales). The Steak n Shake Company operates and franchises more than 430<br />
restaurants in 20 states.<br />
Units are typically built in close proximity to highways and are largely freestanding, averaging 3,800 sq. ft. with seating for 100.<br />
Updated exteriors feature white stucco with black and white awnings and red accents. Steak n Shake’s interior décor,<br />
reminiscent of the diner era, reflects the exterior color scheme and includes accents of neon displays, chrome trim and etched<br />
glass. Booth seating is black and gray with red accents, and tables are white. The floor sports black-and-white tile. The open<br />
kitchen is an integral part of interiors; all food is cooked to order in front of customers.<br />
Gus Belt opened the first Steak n Shake in 1934 in Normal, IL. Franklin Corp. bought controlling interest in the company in<br />
1971. In 1982, Kelly and Partners, Ltd., acquired an 85% interest in Franklin Corp. In 1985, Consolidated Products, Inc.<br />
acquired Steak n Shake, which became a wholly owned subsidiary. In early 2001 its corporate name was changed to The<br />
Steak n Shake Company and its stock symbol to SNS. The company has not disclosed any expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Steak n Shake features menus breakfast and lunch/dinner. Popular breakfast items include the Steak 'n Eggs Breakfast,<br />
Country Scrambler, and Strawberry French Toast. For lunch and dinner, menu options are burgers, chili, salads, melts and<br />
sandwiches. Specialty lunch and dinner items include the Chili Deluxe, Fried Chicken Salad, Tuna Melt, Bacon 'n Cheese<br />
Double Steak Burger, and Grilled Chicken Breast Sandwich. The chain is known for its Steakburgers, which are prepared to<br />
order. Sides include baked beans, french fries and side salads. A kids’ menu offers Jr. Grilled Cheese 'n Fries, Jr. Chili Mac<br />
Plate and Jr. Chicken Fingers 'n Fries. The beverage menu includes a variety of shakes and malts, with flavors such as<br />
chocolate mint, banana and coffee. Dessert items include the Berry Berry Cobbler a la Mode and Brownie Fudge Sundae.<br />
<strong>Menu</strong> prices range from $1.19–$7.59 and checks average $6.<br />
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published.<br />
629
<strong>Menu</strong> Development |<br />
Steak ’n Shake added two new flavors to its classic milk shake menu, Dark Chocolate with Holiday Fudge and White<br />
Chocolate with Holiday Fudge. The items are priced at $3.19. (Company Promo)<br />
Steak N Shake Co. will introduce a new line of frozen yogurt-based milk shakes. The line features four healthy flavors:<br />
Strawberry, Raspberry, Strawberry-Banana and Banana. All flavors are available in junior, medium or large for carry-out<br />
orders and two sizes for dine-in orders. (NRN Daily NewsFax 12/27/06)<br />
Steak n Shake is offering customers the opportunity to create their own milkshake from up to eight fruit, candy and cookie mixins<br />
combined with one of the chain’s 10 Classic Milk Shake flavors. The chain is inviting patrons to submit a video naming and<br />
describing their shake. The winner of the contest will have the winning video posted online as well as receive one free<br />
milkshake a day for one year. (Nation’s Restaurant News Online 4/17/07)<br />
Steak N Shake converted to zero-trans-fat frying oils in all of its 478 units. The company’s long-term plan is to remove trans fat<br />
from the menu wherever possible. In the future, the chain will identify the items that are without trans fat. (Company Release<br />
5/30/07)<br />
Steak ‘n Shake will introduce lighter chicken sandwiches and salads to its menu in July. Items such as the Apple Walnut<br />
Grilled Chicken will be added to current healthy menu items, such as the marinated grilled-chicken single. (Quad-Cities Online<br />
6/7/07)<br />
Steak n Shake is converting to trans-fat-free cooking oil and has expanded its menu with a Lighter Choices selection in all of<br />
its units across 20 states. The Lighter Choices menu, identified by a green “Lighter” symbol on the new eight-page menu,<br />
features made-to-order entrée salads such as Apple Walnut Grilled Chicken and Classic Grilled Chicken salads. Fruit ’n<br />
Frozen Yogurt Milk Shakes are also available as an alternative to signature old-fashioned hand-dipped milk shakes. Steak n<br />
Shake also offers lighter side options such as side salads with healthier dressings and apple slices with grapes. (Yahoo!<br />
Finance 7/11/07)<br />
Steak n Shake debuted two new flavors to its Fruit ’n Frozen Yogurt Milk Shakes line, Peach and Black Cherry. (Company<br />
Release 7/11/07)<br />
Steak n Shake rolled out two new entrée salads, Apple Walnut Grilled Chicken and Classic Grilled Chicken. The chain also<br />
added reformulated its Beef or Grilled Chicken Taco, Fried Chicken and Deluxe Garden salads. The salads are prepared with<br />
romaine lettuce blend and toppings such as grape tomatoes, dried cranberries, Granny Smith apples, honey-roasted walnuts,<br />
ranch pecans and salt-and-pepper croutons. (Company Release 7/11/07)<br />
Personnel |<br />
Alan Gilman, Interim CEO/President<br />
Jefferey Blade, CFO<br />
Scott Deibert, V.P. of Purchasing<br />
Steven Shriller, CMO<br />
Del Conoscenti, V.P. Research & Development<br />
Omar Janjua, E.V.P. of Operations<br />
Steak ‘n Shake hired Omar Janjua as Executive Vice President of Operations. Previously, Janjua served as Head Coach, Vice<br />
President of Operations for the West territory of Yum! Brands’ Pizza Hut chain. (Company Website 6/14/07)<br />
Steak n Shake hired Omar Janjua as Executive Vice President of Operations. Previously, Janjua led operations services at<br />
Pizza Hut. (Nation’s Restaurant News 7/3/07 p4)<br />
Steak n Shake’s President and Chief Executive, Peter Dunn, resigned as an officer. Alan Gilman, Chairman, will assume the<br />
role of interim President and Chief Executive. (Online.wsj.com 8/13/07)<br />
News & Other |<br />
Steak n Shake reported for the fourth quarter ended September 27 net earnings declined 13.8% to $7.5 million from $8.7<br />
million for the same period last year. Revenues increased 4.3% to $152 million from 145.7 million. Same-store sales fell 3.4%.<br />
(Company Release 11/14/06)<br />
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630
Steak N Shake reported for the first quarter ended December 20 net earnings declined 10.6% to $4.2 million from $4.7 million<br />
for the same period last year. Revenues grew 6.1% to $147.3 million from $138.7 million. Same-store sales fell 1.7%.<br />
(Company Release 1/24/07)<br />
Steak N Shake reported for the first quarter ended December 20 net earnings fell 10.6% to $4.2 million from $4.7 million for<br />
the same period last year. Revenues increased 6.1% to $147.3 million from $138.7 million. Same-store sales declined 1.7%.<br />
(Company Release 1/24/07)<br />
Steak N Shake reported for the second quarter ended April 11 net earnings declined 29.8% to $6 million from $8.5 million for<br />
the same period last year. Revenues increased 2.3% to $202.2 million. Same-store sales fell 4.7%. (Nation’s Restaurant News<br />
5/21/07 p16)<br />
Steak n Shake has begun to evolve its strategic plan. Under the direction of the company’s new interim chief executive officer,<br />
Alan Gilman. The plan includes intensifying focus on field leadership, simplifying initiatives and improving store-level training.<br />
(Phoenix.corporate-ir.net 8/23/07)<br />
Steak n Shake was criticized by shareholder Sardar Biglari, Western Sizzlin chairman. Biglari sent a letter to the chain’s<br />
shareholders criticizing what he called the chain’s “failed vision, failed strategy, failed execution, and failed board.” Biglari<br />
currently has a 6.7% stake in Steak n Shake. In the letter, he also reiterated his intention to seek seats for himself and an<br />
associate on Steak n Shake’s board. (NRN Daily NewsFax 10/2/07)<br />
Steak n Shake is set to donate Steakburger patties to America’s Second Harvest in a gift-card promotion. Through December<br />
24, the burger chain will donate one patty for every $5 worth of gift cards it sells. The company is also donating 80,000 patties<br />
November 13 to Second Harvest food banks in Indianapolis, St. Louis and Peoria, IL. The promotion is the fifth consecutive<br />
year that Steak n Shake has worked with America’s Second Harvest. (Company Release 11/13/07)<br />
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published.<br />
631
Subway<br />
Headquarters<br />
325 Bic Dr., Milford, Connecticut 06461 USA<br />
Tel: (203)877-4281 Fax: (203)876-6674<br />
www.subway.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 7,710,000 7,170,000 6,270,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 7,710,000 7,170,000 6,270,000<br />
U.S. Number of Units 20,755 19,620 17,909<br />
Company-owned - - 1<br />
Franchised 20,755 19,620 17,908<br />
International Sales ($000) 2,300,000 1,870,000 1,500,000<br />
International Units 6,138 5,190 4,559<br />
Average Sales/Unit ($000) 382 385 370<br />
Concept Positioning |<br />
Subway is the world’s second largest fast-food operation. Subway’s menu focus is on sub-style sandwiches. The chain offers<br />
sit-down and carryout service to a primary customer base between the ages of 18 and 35, 65% of which is male. Carryout<br />
orders account for 65% of sales. Doctors Associates Inc. is the parent company of Subway. Subway franchises all of its more<br />
than 26,500 restaurants worldwide.<br />
Some units are freestanding whereas others are located in strip centers, malls, key downtown areas, college campuses,<br />
convenience stores, truck stops, grocery stores, military bases and hospitals. A typical unit averages 1,000 sq. ft., with seating<br />
for 25 patrons. The smallest stores, however, occupy only 300 sq. ft. and have no seating, while larger ones measure 2,000<br />
sq. ft. and have seating for 40 people. Some units have drive-through windows. The interior-decorating program utilizes a<br />
yellow and green color scheme and a new “Tuscany”-inspired decor. Subway's continues to open units in supermarkets,<br />
convenience stores and Wal-Mart stores. Subway now operates more than 70 units inside Wal-Mart stores nationwide.<br />
Subway continues to add self-ordering kiosks in select units. Nearly 50 Subway locations in the U.S., New Zealand, the U.K.<br />
and Australia are utilizing this new service, which allows customers the opportunity to order their sandwiches using a touch<br />
screen.<br />
Fred DeLuca and Dr. Peter Buck founded the company in Bridgeport, CT, in 1965. The first franchise was sold in 1974.<br />
Doctor's Associates Inc. franchises the privately owned concept. India is an international expansion target market for the chain<br />
where the company plans to have 100 units by the end of 2007.<br />
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published.<br />
632
<strong>Menu</strong> Positioning |<br />
Subway's menu offers a variety of hot and cold sandwiches, salads, wraps and soups for breakfast, lunch and dinner.<br />
Customers build their own sandwiches, first choosing from a variety of freshly-baked breads, including Italian, Wheat,<br />
Parmesan Oregano and Harvest Wheat. Sandwiches are available as submarines or deli-style, and diners can select either<br />
six-inch or foot-long sizes. After customers select their sandwich type, they can choose from a selection of cheeses,<br />
vegetables and condiments. Subway's signature subs include the Subway Melt Sub, Meatball Marinara Sub, Steak & Cheese<br />
Sub, Chicken & Bacon Ranch Sub and Classic Tuna Sub. Healthier eating options with six grams of fat or less include the<br />
Oven Roasted Chicken Breast, Turkey Breast and Veggie Delight. Most sandwich offerings are also available as wraps.<br />
Salads include the Cold Cut Combo Salad and BMT Salad. In 2006, Subway introduced the Fresh Fit meal program. It<br />
includes a six inch sub with six grams of fat or less, Diet Coke, water or 1% milk and a choice of apple slices, raisins, Dannon<br />
yogurt or Baked Lays potato chips. Sides items are an assortment of chips and cookies are available for dessert. A kids' menu<br />
is available. Alcoholic beverages are not served. Prices range from $2.99–$6.29 Checks average $6.07.<br />
Expansion Plans |<br />
Subway has opened its first kosher restaurant in Brooklyn on January 2. The new restaurant is the company’s second North<br />
American kosher restaurant. (Company Release 2/23/07)<br />
McDonald’s and Subway will be opening locations in Falkville, AL, as part of the Love’s Travel Stop development project. The<br />
development will begin in the fall and will be open for business in 2008 on I-65 and Highway 55. Love’s is a family-owned<br />
cooperation with headquarters in Oklahoma City. (Hartselleenquirer.com 7/12/07)<br />
Subway plans to open as many as 1,450 new units in the U.S. and approximately 150 in Canada by the end of 2007. The<br />
sandwich chain also hopes to build as many as 1,000 new international locations this year. There are currently 20,800<br />
Subways in the U.S., 2,230 in Canada and 4,384 in other international locations. (Foodservice Equipment Reports 6/07 p13)<br />
Subway opened 628 new locations in the U.S., New Zealand, Panama and Pakistan. The chain currently boasts more than<br />
6,700 units in the U.S., plus more than 6,400 nontraditional locations. The chain has units in gas stations, truck stops and<br />
travel centers. (Cspnet.com 8/1/07)<br />
Subway opened a new 24-hour restaurant in Ashwaubenon, WI, on August 3. The unit is the first Subway restaurant with a<br />
drive-thru and utilizes two food-preparation counters to accommodate both indoor and drive-thru customers. The restaurant is<br />
owned by Buckley Enterprises, which operates 30 Subways, including 20 in the Green Bay, WI, area. (Thenorthwestern.com<br />
8/8/07)<br />
Promotion Plans |<br />
Subway teamed with Zumba Fitness to present “the world’s largest Zumba class” to promote Subway’s new Fresh Fit menu.<br />
The fitness class was set for March 11 in the heart of Little Havana in Miami, in conjunction with the Calle Ocho Festival.<br />
(Hispanicprwire.com 3/2/07)<br />
Subway launched the Subway Fresh Fit sweepstakes with partner PUSH.tv, a full body training system. The sweepstakes<br />
compliments Subway’s Fresh Fit menu. Participants will be eligible to win one of two grand prizes: a trip to Los Angeles for two<br />
to train with PUSH.tv personal trainer Jessica Smith or Bob Harper, or a six-month membership to PUSH.tv, which includes<br />
PowerPUSH DVD trio sets, Trek bikes and Subway Fit Evolution t-shirts. (Sys-con.com 4/30/07)<br />
Subway teamed with boxer Oscar De La Hoya for an online promotion emphasizing eating healthy and staying fit. De La Hoya<br />
wrote an online journal, available at Subway’s website, in which he shared his thoughts prior to and following his title match<br />
against Floyd Mayweather, Jr. on May 5. Fans can also view photos and videos of De La Hoya. (Company Release 5/3/07)<br />
Subway is targeting football fans with a helmet giveaway. Fans in the Seattle-Tacoma, WA, area had the opportunity to enter a<br />
contest to win a signed Seattle Seahawks helmet. Participants entered by texting a keyword found on the team’s scoreboard<br />
during the October 28 game. As part of the promotion, those who entered the giveaway were also enrolled in “My Subway<br />
Mobile,” a club that sends exclusive text-message offers to its members. The promotion was part of Subway’s test-market<br />
mobile promotion campaign with Modiv Shopper. (promomagazine.com 10/30/07)<br />
Subway has joined with Fox TV’s “Family Guy” in a new promotion. Through December 30, Subway is offering “Family Guy”<br />
collector’s cups in all its stores, and will also feature an online “Family Guy” trivia game at SubwayFreshBuzz.com. The<br />
promotion will be supported by national TV spots. (Promomagazine.com 11/20/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
633
<strong>Menu</strong> Development |<br />
Subway introduced its new Fresh Fit menu. The combo meals substitute apples or raisins for chips, and water or 1% milk for<br />
soda, with a sub. (USA Today 3/1/07)<br />
Subway rolled out its Fresh Fit combos, which includes a six-inch, low-fat sub, and substitutes apples and raisins for chips and<br />
1% milk or water for soft drinks. Items are priced at $4.49–$5.89. (USAToday.com 3/01/07)<br />
Subway introduced sliced apples and raisins as side options on its new Fresh Fit line on March 12. The sides are also<br />
available for kids’ meals. Prices were not given. (NRN Daily NewsFax 3/9/07)<br />
Subway will offer thick-crust-style personal pizza at its domestic locations by June. The pizzas will be pre-baked at central<br />
locations, then shipped to stores. The items are priced at $2.99, with additional toppings such as sausage, pepperoni or<br />
meatballs an extra dollar. (Brandweek.com 4/9/07)<br />
Subway is adding pizza to its menu at 13,000 locations in the U.S. by December. The 8-in. pizzas will be baked in speed<br />
ovens and feature ingredients already offered on the sandwich line. (Foodservice Equipment Reports 6/07 p13)<br />
Subway is offering Groupe Danone’s Dannon yogurt in more than 20,000 U.S. Subway sandwich shops. The yogurt, featured<br />
with Subway’s Fresh Fit lowfat sandwich menu, marks Dannon’s first large nationwide expansion into U.S. restaurants.<br />
Average yogurt consumption in the U.S. is 11 pounds per person annually, which is six or seven times less than in European<br />
markets, according to Dannon. Groupe Danone has identified the U.S. as a market with tremendous growth potential.<br />
(MarketWatch Online 9/4/07; NRN Daily NewsFax 9/5/07)<br />
Subway and Dunkin’ Donuts have joined the $28.5 billion pizza industry by offering small, personal-size pizzas. According to<br />
NPD Group reports, 9% of all meals eaten at restaurants include pizza. In response to increasing pizza demand, Subway<br />
offers $2.99 thick-crust pizzas, which arrive frozen at stores and then are baked in toaster ovens in 90 seconds. Meat toppings<br />
cost an additional $1 and veggie toppings are free. Dunkin’ Donuts is also offering made-to-order pizzas at $2.49–$2.99 each;<br />
the pizzas are oven-cooked in three minutes. McDonald’s tested pizza in units more than a decade ago, but removed the item<br />
after experiencing slow sales. (USA Today Online 9/10/07)<br />
Subway rolled out its Fresh Fit Meals, featuring a choice from a selection of eight subs with 6 grams of fat or less along with a<br />
healthy side and beverage. Sandwiches included in the Fresh Fit Meals are Turkey Breast, Oven Roasted Chicken Breast,<br />
Ham, Turkey Breast and Ham, Roast Beef, Subway Club, Veggie Delight and Sweet Onion Chicken Terriyaki. Sides are<br />
Baked Lay’s Original Potato Crisps, raisins, apple slices or Dannon yogurt, and beverage selections are lowfat milk, diet soda<br />
or water. (Company Website)<br />
Franchise Activity |<br />
Subway debuted its second kosher restaurant in the New York City market. The company’s first such outlet opened in<br />
Cleveland last year. Subway plans to add at least eight more kosher units by the end of the year. (Company Release 2/23/07)<br />
Technology |<br />
Subway has introduced its new Subway Cash Card, an electronic cash card so customers can pay for their meal quickly and<br />
conveniently. The card is used like a gift card or credit card and is reloadable. (Earthtimes.org 12/5/06)<br />
Personnel |<br />
Tom Coba, Director of Operations<br />
Millie Shin, Director of Purchasing<br />
David Worroll, CFO<br />
Fred DeLuca, President<br />
Bill Scheffini, CMO<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
634
News & Other |<br />
Subway Restaurants is rolling out its “Tuscany” store design to 20,000 domestic locations. There are currently 12,000 outlets<br />
with the new look. The Tuscany design is a more European look with hints of the Italian region of Tuscany in wall murals, a<br />
brick-like pattern covering the wall behind the counter, porcelain floor tiles, and a dining area featuring table surfaces with a<br />
color scheme of gold, green, wheat and deep red. (Nation’s Restaurant News 3/12/07 p1)<br />
KFC is a candidate to replace Anheuser-Busch Co. as title sponsor of the NASCAR Busch Series next season. In addition to<br />
KFC, Subway is also a candidate. NASCAR and ESPN are working together to sell the sponsor title, which will cost the<br />
sponsor about $30 million a year. (Memphis.bizjournals.com 4/30/07)<br />
University of North Carolina-Chapel Hill is converting its End Zone sports café into a Starbucks by late September. The<br />
university also intends to open either a Subway or a Quiznos by fall 2007. (FoodManagement.com 5/07)<br />
Subway is putting calorie counts on its menu boards in New York City, showing that the labeling is feasible. Other fast-food<br />
restaurants have refused to list the counts on their menus, claiming there isn’t room. (Media Post Publications 7/11/07)<br />
Subway entered into an agreement with Enodis PLC to specify its Merrychef accelerated-cooking ovens to prepare hot<br />
sandwiches. Merrychef has installed more than 70,000 microwave and combination-technology ovens in foodservice locations.<br />
(Nation’s Restaurant News 9/10/07)<br />
Wal-Mart now hosts more Subways than McDonald’s. Subway, which began appearing in Wal-Mart three years ago, occupies<br />
1,419 Wal-Mart locations in the U.S., compared to McDonald’s 1,021 locations. Subway has had a successful move into retail<br />
spaces because of its minimal operations with no fryers or grills. (Yahoo! Finance 9/14/07; Houston Chronicle Online 9/14/07)<br />
Subway plans to test delivery service. The chain would invite customers to place orders through a call center in select cities<br />
and have the orders delivered. Details were not disclosed. (NRN Daily NewsFax 10/18/07)<br />
Subway Restaurants plans to test delivery service. This is according to Universal Delivery Service Group Inc., an outside<br />
vendor that will provide the centralized call center for orders. Delivery will initially take place in select cities. (Nation’s<br />
Restaurant News 10/29/07)<br />
Subway unveiled its first of several planned Eco-Stores in Kissimmee, FL, on November 5. The company collaborated on the<br />
project with the nonprofit U.S. Green Building Council. Features of the new environmentally friendly concept include highefficiency<br />
HVAC systems, LED interior and exterior signs and low-flow water fixtures. In addition, all Subway units now use<br />
napkins made from 100% recycled materials. Other Eco-Stores are in various stages of planning. Subway is working to<br />
become certified by the USGBC in the nonprofit’s Leadership in Energy and Environmental Design (LEED) program.<br />
(Franchising.com 11/13/07)<br />
Subway is testing recycling bins at its new Florida Eco-Store. The recycling bin at the Kissimmee restaurant is divided into<br />
three baskets for paper, plastic and trash. Currently, only the plastic waste is being recycled because the company has not<br />
found an effective way to recycle paper with food waste on it. The recycled plastic waste includes plastic bottles, straws, straw<br />
wrappers, drink lids, cutlery and salad bowls. If the recycling effort is successful, Subway plans to institute it in more<br />
restaurants. No other major fast-food chain currently offers consumer recycling bins. (WSJ.com 11/21/07)<br />
Subway has signed a deal with InStore Broadcasting Network to bring advertising and video content to its nearly 30,000<br />
stores. Details of the deal were not released. InStore is a leading supermarket media provider. (Mediapost.com 11/27/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
635
T.G.I. Friday's<br />
Headquarters<br />
4201 Marsh Lane, Carrollton, Texas 75007 USA<br />
Tel: (972)662-5400 Fax: (972)662-5739<br />
www.fridays.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 2,030,000 1,995,000 1,810,000<br />
Company-owned ($000) 995,000 975,000 848,000<br />
Franchised ($000) 1,035,000 1,020,000 962,000<br />
U.S. Number of Units 577 549 530<br />
Company-owned 289 271 256<br />
Franchised 288 278 274<br />
International Sales ($000) 635,000 584,817 578,781<br />
International Units 288 256 229<br />
Average Sales/Unit ($000) 3,600 3,700 3,400<br />
Concept Positioning |<br />
T.G.I. Friday's is a casual-dining restaurant concept designed to appeal to the 21- to 49-year-old age group. Restaurants offer<br />
a selection of beef, chicken and seafood entrées and are popular for their appetizer menu, smaller portion options, extensive<br />
selection of signature cocktails and energetic, friendly atmosphere. The chain also has a line of branded merchandise,<br />
including frozen snacks, salted snacks, ready-to-drink bottled adult beverages, non-alcohol beverage mixers, and even<br />
nonfood products such as duffle bags, watches and shirts. T.G.I. Friday’s is privately owned by Carlson Restaurants<br />
Worldwide, a leading restaurant management company and a division of Minneapolis-based Carlson, Inc., a world leader in<br />
the hospitality, travel and marketing industries. Carlson’s Friday’s brand operates under two divisions: T.G.I. Friday’s U.S.A.,<br />
which includes T.G.I. Friday’s, Friday’s Front Row Sports Grill and Friday’s American Bar brands; and International, which<br />
includes overseas units of those three related concepts. In addition, Carlson owns Pick Up Stix, a leader in the Asian quickcasual<br />
sector.<br />
T.G.I. Friday’s units are generally freestanding and average 8,700 sq. ft. Interiors feature a large, four-sided bar surrounded by<br />
tiered seating on a multilevel floor plan. The average unit has a dining capacity of 300, including bar seating for 40 people. A<br />
new, smaller 5,200-sq.-ft. prototype unit has 220 seats for diners, eliminates the multilevel floor plan and has a one-sided bar<br />
that seats 20 people. Both are decorated with amusing memorabilia and have the chain's signature exterior red and white<br />
awning. Many units also have an outdoor patio or greenhouse.<br />
T.G.I. Friday's is in the midst of a $200-million systemwide remodeling program. The revamped décor features less clutter and<br />
antique memorabilia. A deeper shade of red was used on taller and more graphic exterior awnings, and a tower entry was<br />
added along with more modern signage, which includes a sculptural black and red metal tumbler. Redesigned interiors are<br />
now more contemporary with dark woods, stainless-steel fixtures, backless bar stools and new lighting. Even the music has<br />
been updated to reflect the tastes and preferences of today’s guest. “Retired” memorabilia reflects icons of the ’40s, ’50s and<br />
’60s, while the new décor includes more modern icons such as disco balls and MTV’s Moon man. Company-owned T.G.I.<br />
Friday’s restaurants have been updated, and all franchise restaurants are scheduled for remodeling by the end of 2009. The<br />
company also has launched a new 5,000-sq.-ft. 160-seat prototype, which features vibrant colors (such as bright turquoise<br />
walls) along with 42-in. flat-screen TVs in the bar area. A third of new units will be the smaller prototype.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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636
Friday’s Front Row Sports Grill is an oversized sports bar with billiards, shuffleboard, video games and interactive TV,<br />
launched to serve the sports fan with higher quality foods than traditionally offered at sport stadiums and other sporting events.<br />
Units average 17,000–23,000 sq. ft. The first location opened in 1994 in The Ballpark in Arlington, TX, and became the first<br />
full-service, casual-dining restaurant in a professional U.S. ballpark. The concept is built around an extensive menu and<br />
beverage selection in a sports bar-like atmosphere. Units house sports memorabilia, state-of-the-art technology with multiple<br />
televisions screens (60–75 per unit) and an assortment of games, ranging from billiards to virtual reality interactive games.<br />
Friday’s America Bar is a small, quaint, casual gathering place reminiscent of a neighborhood bar, offering a variety of food,<br />
beverages and music. Units range from 1,000–3,500 sq. ft. Some are located in airports, while others are situated in urban<br />
streetscapes.<br />
T.G.I. Friday’s, the first national casual dining chain, has been in operation for more than 40 years. The original unit was<br />
opened by legendary restaurateur Alan Stillman in 1965 at First Avenue and 63rd Street in New York City. It featured the<br />
familiar red-and-white stripes, wooden floors, Tiffany-style lamps and bentwood chairs. The bar, with its brass rails and stained<br />
glass, contributed to the ambiance. The New York location enjoyed immediate success and became a well-known meeting<br />
place for single adults. In fact, Newsweek and other media heralded the opening of T.G.I. Friday’s as the dawn of the singles<br />
age. Friday’s restaurants are also credited with naming “Happy Hour,” inventing Loaded Potato Skins and Long Island Iced<br />
Tea, and popularizing frozen and ice-cream drinks.<br />
By 1975, when the concept was acquired by Carlson, there were 10 T.G.I. Friday’s restaurants in eight states; Stillman<br />
retained only the original restaurant. In 1983, the majority interest in T.G.I. Friday’s went public, although Carlson continued to<br />
have stock holdings. Carlson purchased the remaining stock in 1990. In 1998, the company changed its name to Carlson<br />
Restaurants Worldwide. Today, Carlson Restaurants Worldwide operates, franchises and licenses nearly 1,000 restaurants in<br />
the U.S. and around the world. T.G.I. Friday’s is the largest varied-menu, casual-dining chain internationally, with units in 55<br />
countries outside the United States. International expansion remains a priority. T.G.I. Friday's has recently announced its<br />
intent to open 25 new locations in India over the next three to four years.<br />
<strong>Menu</strong> Positioning |<br />
T.G.I. Friday's widely varied menu for lunch and dinner offers appetizers, soups and salads, sides, sandwiches, burgers,<br />
chicken, pasta, seafood, ribs, steak, desserts and beverages. Signature items include the Pot Stickers appetizer, Broccoli<br />
Cheese soup, Cobb Salad, Asian Chicken Salad, Sizzling Chicken Fajitas, Bruschetta Chicken Pasta, Fish & Chips and New<br />
York Strip Steak. New favorites include Friday’s Sliders—a mini-burger appetizer; Chicken Caesar Salad—served with hot<br />
grilled chicken and a proprietary dressing; and Grilled Cedar Salmon—a seasoned, 7-oz. fire-grilled salmon fillet. Along with<br />
many new menu items, the T.G.I. Friday’s menu layout has been redesigned to make navigating the wide array of choices<br />
easier for guests. Among its extended choices is the option to choose smaller-portioned meals for a reduced price. Friday’s<br />
latest promotion is its Three-Course <strong>Menu</strong>, which allows customers to combine an entrée with any appetizer and dessert on<br />
the menu for one price. Selections on the Three-Course <strong>Menu</strong> include such entrées as Asian Garlic Chicken, Argentinean<br />
Rubbed Flat Iron Steak and Half-Rack of Baby Ribs & Shrimp; appetizers such as Crispy Green Bean Fries, Fried Mozzarella<br />
and Fried Mac n Cheese; and desserts such as Cinnabon® Cheesecake, Oreo® Chocolate Cake and Chocolate Angel Swirl<br />
Cake. Another large section is dedicated to Jack Daniel’s® Grill, one of Friday’s bestselling categories. The selection includes<br />
the Jack Daniel's Burger, Jack Daniel's Salmon, Jack Daniel’s Pulled Pork and Jack Daniel's Glazed Ribs. Favorites of this line<br />
also include Jack Daniel’s Roasted Pork—braised bone-in pork roast piled high with crispy onions and served with mashed<br />
potatoes and broccoli; and Jack Daniel’s Ribeye—a 14-oz. steak, seasoned, grilled and served with mashed potatoes. The<br />
line is enhanced by a selection of Jack Daniel's sauces, including a new Spicy Jack Daniel's Sauce, a smoky sauce made with<br />
chipotle. The Steakhouse Selects section features several steak options, including the 8-oz. Flat Iron Steak, 12-oz. New York<br />
Strip and the 10-oz. Classic Sirloin. Steaks are cooked to order and served with choice of one side item and either Wild<br />
Mushroom, Roasted Pepper or Lively Burgundy butter sauces. A separate kids’ menu features macaroni and cheese, cheese<br />
pizza, burgers and spaghetti, served with choice of one side item and a beverage. The dessert selection features one of the<br />
industry’s hottest trends—mini desserts—as well as several branded dessert offerings. Non-alcoholic beverages include Slush<br />
drinks, such as the Strawberry Lemonade Slush, made with strawberry and wild berry puree, Minute Maid® Lemonade and<br />
Sprite. Other beverages include soft drinks, Red Bull, coffee and iced tea. Well-known for its assortment of specialty cocktails<br />
and margaritas, T.G.I. Friday’s offers full bar service. Its wide-ranging collection of alcoholic beverages starts with domestic<br />
and imported beer, California red and white wines, and Fresh Raspberry Cherry, Fresh Tropical Passion, Perfectly Fresh and<br />
Fresh Blueberry Mango margaritas. <strong>Menu</strong> prices range from $2.29–$17.99. Checks average $14.<br />
Expansion Plans |<br />
T.G.I. Friday’s has announced the opening of its 600th U.S. unit at NorthPark Center in Dallas. The chain currently has 903<br />
restaurants in 58 countries. (Company Release 11/9/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
637
<strong>Menu</strong> Development |<br />
T.G.I. Friday’s will introduce its new item, the Tuscan Portobello Melt with Fire-Roasted Pepper soup, the winning entrée from<br />
Bravo’s television show “Top Chef.” The sandwich features Portobello mushrooms, roasted onion, Provolone and Monterey<br />
Jack cheeses and tomatoes on grilled, buttery bread. The item is priced at $7.74. (Hotelnewsresource.com 11/2/06)<br />
T.G.I. Friday’s has added two more items to its Jack Daniel’s Grill menu. New offerings are Jack Daniel’s Roasted Pork,<br />
braised bone-in pork roast piled high with crispy onions and served with mashed potatoes and broccoli, and Jack Daniel’s<br />
Ribeye, a 14-oz. steak seasoned, grilled and served with mashed potatoes. (Company Release 10/16/06; NRN Daily NewsFax<br />
10/18/06)<br />
Classic apple desserts are being revamped for many fall menus. At T.G.I. Friday’s locations, the Sizzling Apple Pie a la Mode<br />
features a rustic pastry crust, vanilla ice cream and sliced apples, which are brought to the table on sizzling platters for servers<br />
to finish preparing the dish tableside, and drizzled with caramel sauce. At the Atwood Café in Chicago, guests can feast on<br />
Apple Cobbler prepared with tart green apples spiced with nutmeg and cinnamon, sautéed in butter and served in a crumb<br />
topping incorporating white Cheddar cheese and topped with vanilla ice cream. Pandini’s units offer Apple Stromboli with<br />
apple-pie filling in a cinnamon-dusted dough similar to what is used to prepare pizzas and strombolis, topped with caramel and<br />
confectioner’s sugar. At Vox Populi in Boston, Chef Eric Bogardus menus Apple Beignets prepared with sliced apples<br />
marinated in lemon juice, orange liqueur, water and sugar, then coated in yeast batter with beet brandy and vanilla extract,<br />
fried, sprinkled with confectioner’s sugar and served with jalapeño-spiked cider glaze. (Restaurants & Institutions 10/01/06<br />
p35)<br />
Bar food is being revamped into more sophisticated offerings at many restaurants. Recently, T.G.I. Friday’s added a variety of<br />
new offerings, including fried green beans served with a wasabi-cucumber dipping sauce ($4 with the purchase of a main<br />
course). Bennigan’s locations have launched Bar Bites, a tapas-style menu, with offerings such as fried calamari with bits of<br />
fried jalapeño and fried onion, Buffalo shrimp and Southwest Chicken Taquitos. Rathbun restaurant in Atlanta serves a jumbo<br />
lump crab cake and garlic custard tart with Creole mustard and tomato-cayenne jam ($7.95). At Arcadia in the Marriot Hotel in<br />
San Jose, CA, guests can dine on a lobster corn dog with mustard crème fraîche ($12) and black truffle popcorn with chives<br />
($9). At the Key Bar in Austin, TX, patrons can add mini popsicles as a garnish to drink for $1. The popsicles are prepared with<br />
lemon juice and orange juice and frozen in old-fashioned ice cube trays. (Nation’s Restaurant News 10/09/06 p25)<br />
T.G.I. Friday’s added several new California wines to its beverage menu. Selections include Barefoot brand Merlot,<br />
Chardonnay and Cabernet Sauvignon, Jewel Un-Oaked Chardonnay and Smoking Loon Cabernet Sauvignon. (Nation’s<br />
Restaurant News 12/04/06 p24)<br />
T.G.I. Friday’s rolled out a menu of three-course meals for $12.99, featuring its “Indulgent” and “Better For You” appetizers,<br />
entrées and desserts. The chain also added two “Better For You” entrées, Island Grilled Mahi Mahi, topped with a light<br />
coconut sauce and pineapple pico de gallo and served with a stir-fried brown rice and broccoli; and Dragonfire Chicken,<br />
prepared with kung pao sauce, topped with Mandarin oranges and pineapple pico de gallo and served with stir-fried brown rice<br />
and cilantro-lime seasoned broccoli. The new “Better For You” dessert is Chocolate Angel Swirl Cake, prepared with chocolate<br />
angel food cake, blended with chocolate mousse, finished with fresh pineapple and strawberries and drizzled with chocolate<br />
fudge sauce. The “Indulgent” dishes menued are Fried Mac & Cheese, Bruschetta Chicken Parmesan, a Half Rack Baby Back<br />
Ribs and Cinnabon Cheesecake. (NRN Daily NewsFax 1/2/07; Nation’s Restaurant News Online 12/29/06)<br />
Chorizo is being used in a variety of dishes at chains as well as at independent restaurants. The spiced pork sausage can be<br />
found in T.G.I. Friday’s Potato Skinny Dippers, a skin-on potato wedge appetizer with a melted cheese and chorizo dipping<br />
sauce. At Rock Center Café in New York City, Chef Antonio Prontelli mixes Spanish chorizo with cannellini, black chickpeas<br />
and red kidney beans and serves it with the daily fish special, which is topped with a slow-roasted tomato confit. Ciudad in Los<br />
Angeles serves calamari sautéed with housemade chorizo. (Nation’s Restaurant News Online 12/11/06)<br />
T.G.I. Friday’s has introduced a new dessert, Oreo Chocolate Cake, to its Indulgent menu. The item features chocolate cake<br />
with layers of Oreo cookies and crème filling and topped with crushed Oreo cookies. (Company Release 1/25/07)<br />
T.G.I. Friday’s will be in compliance with trans-fat guidelines in all of its U.S. restaurants by July 2007. The company also<br />
stated that by July 2008, most of its products will be trans-fat free, including desserts and dressings. (Bizjournals.com 2/15/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
638
T.G.I. Friday’s debuted “Right Portion, Right Price,” featuring 10 items with portion sizes reduced by 30% and reduced prices<br />
for both lunch and dinner. Items featured include Jack Daniel's Chicken Alfredo, Dragonfire Chicken, Shrimp Key West, Cajun<br />
Shrimp & Chicken Pasta, Bruschetta Chicken Parmesan and Half-Rack Baby Back Ribs. The menu also has several new<br />
items, including Cedar-Seared Salmon Pasta, with pan-seared cedar-seasoned salmon fillet served over Alfredo pasta with a<br />
lemon-infused sauce, bruschetta tomatoes and roasted zucchini; Cedar-Seared Salmon on Field Greens, featuring pan-seared<br />
cedar-seasoned salmon fillet on top of field greens, mixed with house vinaigrette, grape tomatoes and grilled Portobello<br />
mushrooms; Asian-Glazed Chicken on Field Greens, chicken breast glazed with spicy Asian sauce, cashews and macadamia<br />
nuts over field greens with a cilantro-lime dressing, red peppers and cucumbers; and Bistro Sirloin Salad, with sliced sirloin<br />
sautéed and served over field greens with grape tomatoes and sweet corn, and tossed in a house vinaigrette. (NRN Daily<br />
NewsFax 3/02/07; Company Website)<br />
T.G.I. Friday’s is planning to eliminate trans fats from its foods by the summer of 2008. The company is currently reviewing<br />
products and conducting consumer research to ensure that any changes will not be apparent to diners. (NRN Daily NewsFax<br />
2/16/07)<br />
T.G.I Friday’s will bring back its Strawberry Fields Salad. The salad will come with the option to order a full size or reduced<br />
portion and an option to add chicken. It features mixed greens, glazed pecans and Parmesan cheese with balsamic vinaigrette<br />
and balsamic-marinated fresh strawberries. The salad is a part of the “Right Portion, Right Price” line and is priced from<br />
$6.99–$8.99. (NRN Daily NewsFax 5/15/07)<br />
T.G.I. Friday’s added “Fresh ’Ritas” to its menu for the summer. Drinks are the Perfectly Fresh ’Rita with premium tequila and<br />
a fresh sour mix; the Fresh Blueberry ’Rita with rum, tequila and blueberries; the Fresh Raspberry ’Rita with tequila, triple sec,<br />
raspberries and cherries; and the Fresh Tropical Passion ’Rita with passion fruit, guava, tequila and triple sec. The beverage<br />
prices start at $6.99. Guests can purchase the margarita glass for $3 with a drink or $4.99 by itself. (NRN Daily NewsFax<br />
5/22/07)<br />
T.G.I. Friday’s has redesigned its menu to expand the chain’s three-course, fixed-price offerings. The three-course menu<br />
option gives customers a choice from among five appetizers, 12 entrées and four desserts for $12.99. Five additional entrées<br />
have been added in a premium category for $16.99, including the Half-Rack of Baby Back Ribs & Shrimp as well as Honey<br />
Pecan Salmon. In addition, Cheeseburger and Chimichurri Sliders have been added to the three-course appetizer selection<br />
and the chain has added Mini Dessert Shots, small dessert cups of classic flavors including rocky road, peanut butter cup and<br />
chocolate-chip mint. Carlson Restaurants Worldwide is the owner and operator of 888 T.G.I. Fridays. (NRN Daily NewsFax<br />
9/12/07)<br />
T.G.I. Friday’s is broadening its appeal with trendy entrées including Cheeseburger Slider with chimichurri sauce; minidesserts,<br />
five flavors of mousse in shot glasses; Asian Garlic Chicken; Honey Pecan Salmon; Grilled Cedar Salmon; and Half-<br />
Rack Baby Back Ribs and Shrimp. T.G.I. Friday’s R&D team continues to scout restaurants in Chicago, New York, Los<br />
Angeles and Atlanta for ideas. (Chainleader.com 9/19/07)<br />
T.G.I. Friday’s restaurants in Oklahoma and Texas will feature marathon-branded menu items. The chain is the official sponsor<br />
of Wellstone’s Dallas White Rock Marathon. <strong>Menu</strong>s will feature nine entrées that have been recommended as appropriate for<br />
a good training diet. Items include Zen Chicken Potstickers, Ggrilled Portobello Pasta, Dragonfire Chicken, Bruschetta Chicken<br />
Ppasta, Asian Glazed Chicken on Field Greens, Shrimp Key West, Cedar-Seared Salmon on Field Greens, Jack Daniel’s<br />
Chicken and Jack Daniel’s Flat Iron Steak. (Bizjournals.com 10/17/07)<br />
Franchise Activity |<br />
T.G.I. Friday’s plans to open 60 outlets per year by 2010, including both company-owned and franchised units. The chain is<br />
targeting Alabama, Georgia, Hawaii, Louisiana, Mississippi, Montana, New Mexico, Oregon, Texas and Wyoming. (New<br />
Mexico Business Weekly 5/16/07)<br />
Personnel |<br />
Anette Grecchi, Corporate Executive Chef<br />
Bill Allen, CEO<br />
Derk Montgomery, CFO<br />
Irean Wenzel, V.P. of Purchasing<br />
William Kadow, V.P. of Operations<br />
Andi Jacobs, V.P. of Marketing<br />
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published.<br />
639
T.G.I. Friday’s has named Anette Grecchi Gray as corporate executive chef for its 800-unit chain. Grecchi Gray was most<br />
recently chef de cuisine at Jiko in Walt Disney World’s Animal Kingdom in Lake Buena Vista, FL. (Nation’s Restaurant News<br />
11/06/07)<br />
News & Other |<br />
T.G.I. Friday’s has named the Make-A-Wish Foundation as its “charity of choice.” Friday’s recently presented the foundation<br />
with a $26,000 check at the opening of the chain’s 600th U.S. restaurant at NorthPark Center in Dallas, and has pledged a<br />
total of $250,000 by December 2008. The first joint initiative of the partnership will be fundraising in conjunction with the<br />
annual T.G.I. Friday’s World Bartender Championship held in March. (Company release 11/27/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
640
Taco Bell<br />
Headquarters<br />
17901 Von Karman, Irvine, California 92614 USA<br />
Tel: (949)863-4500 Fax: (949)863-2252<br />
www.tacobell.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 6,000,000 6,128,000 5,653,000<br />
Company-owned ($000) 1,800,000 1,791,000 1,670,000<br />
Franchised ($000) 4,200,000 4,337,000 3,983,000<br />
U.S. Number of Units 5,608 5,845 5,900<br />
Company-owned 1,290 1,252 1,283<br />
Franchised 4,318 4,593 4,617<br />
International Sales ($000) 185,000 186,000 168,000<br />
International Units 238 243 238<br />
Average Sales/Unit ($000) 1,175 1,168 1,069<br />
Concept Positioning |<br />
Taco Bell is the largest limited-service Mexican chain in the world. Major customer groups are teenagers and young adults.<br />
Yum! Brands is the parent company of Taco Bell, which offers an extensive menu of moderately-priced appetizers, burritos,<br />
nachos and tacos. Yum! franchises the majority of its Taco Bell units.<br />
Units are freestanding or located in malls, airports and other nontraditional locations. The exterior design resembles Spanish<br />
mission-style building. The interior color scheme includes orange, ocher and earth tones. A drive-thru window is an integral<br />
part of all new units. A redesign program created a more upscale image but still retained the familiar red tile roof and mission<br />
arches. Extra outside lighting was added to make the units more visible at night. Two-window drive-thru facilities were also<br />
part of the redesign program.<br />
Taco Bell was founded by Glenn W. Bell in 1962 and acquired by PepsiCo, Inc. in 1978. In 1981, a franchise agreement was<br />
developed. In early 1991, Taco Bell acquired Hot 'n Now and in May 1993, Chevys Mexican Restaurants. In early 1997,<br />
PepsiCo announced its intent to spin-off all of its foodservice holdings into a separate publicly held company. The separation<br />
was completed in October 1997 to Tricon Global Restaurants, Inc., and its Hot ‘n Now and Chevys holdings sold separately at<br />
the same time. Tricon eventually renamed itself YUM! Brands, Inc., in 2002. In May 2006, YUM! announced that most new<br />
Long John Silver's and A&W locations will be multi-branded with its flagship concepts—KFC, Pizza Hut and Taco Bell.<br />
<strong>Menu</strong> Positioning |<br />
Taco Bell offers a lunch and dinner menu that includes tacos, burritos, nachos, chalupas, gorditas, quesadillas, salads and<br />
combo meals. Signature items include Southwest Steak Bowl salad, Chicken Fiesta Taco salad, Chicken or Steak Chalupa or<br />
Gordita, Grilled Steak Taco and Double Burrito Supreme. Combo Meals include two Grilled Stuft Burrito and Nachos, Mexican<br />
Pizza and two Tacos Supreme, and three Crunchy or Soft Tacos. A Kids’ menu is available, including two Tacos for $2.99 and<br />
a Bean Burrito for $2.49. Its Big Bell Value <strong>Menu</strong> offers a variety of favorites priced at 99¢, including the Cheesy Bean & Rice<br />
Burrito. Desserts featured include Cinnamon Twists. In 2007, Taco Bell plans to test breakfast items in select markets in the<br />
U.S. Nonalcoholic beverages are available. <strong>Menu</strong> prices range from 89¢–$5.59. Checks average $4.92.<br />
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published.<br />
641
Promotion Plans |<br />
Taco Bell is launching a campaign at a Stateside, CA, unit where if a customer brings in a PlayStation 3 game console, the<br />
lucky customer could win a lifetime of tacos. The consoles will be donated to the Boys & Girls Club of America. The campaign<br />
ends at 6pm on December 1. (Tmcnet.com 11/21/06)<br />
Taco Bell will give one lucky fan a chance to attend and get onto the field and pick up the kicking tee after kickoff during the<br />
2007 Tostitos BCS Championship Game. Fans can log onto the company’s website and enter from December 3 through<br />
December 17. (Company Release 12/4/06)<br />
Taco Bell will run an ad during the Super Bowl this year to introduce its new Carne Asada Steak Grilled Taquitos. The<br />
commercial features two lions discussing carne asada steak in Taco Bell’s “think outside the bun” way. (Company Release<br />
1/25/07)<br />
Taco Bell launched a promotion called “Official Quick-Service Major League Baseball,” which will allow the winner of its “7<br />
Layers of Love” contest the opportunity to propose marriage to their significant other via the sign behind home plate during a<br />
nationally televised major-league baseball broadcast. Participants can go to Taco Bell’s website and give seven reasons why<br />
their significant other would be “lucky to marry” them. The winner also will receive a year’s supply of Taco Bell food. The<br />
winner’s opportunity will be on July 7. The promotion coincides with Taco Bell’s rollout of its new seven-layer crunchwrap.<br />
(Bizjournals.com 5/4/07)<br />
Taco Bell is offering four 3D Ultra Minigolf Adventures video games with an order of the kids’ meal. The chain offers four<br />
different courses that consumers can play from the new game, including one exclusive “Lost Island” course. Point-of-purchase<br />
materials and direct mail will promote the game. The offer became available on May 24. (Brandweek 5/21/07 p12)<br />
Taco Bell teamed with Gizmoz and MTV to launch a virtual casting call, “TV Me!,” in which participants will audition to star in a<br />
Taco Bell advertisement featuring the participant’s avatar creation. Participants can create the avatar at Gizmoz.com. A cobranded<br />
spot will also appear on MTV. (Qsrmagazine.com 7/9/07)<br />
Taco Bell launched its “World Series Experience of a Lifetime” sweepstakes. Customers who buy a large or extra-large drink<br />
receive game codes that can be entered on a special website to register for the sweepstakes. As the grand prize, the chain<br />
plans to award tickets to every World Series game this year in addition to $50,000 in cash, a chance to throw a ceremonial first<br />
pitch before one game and access to the field during batting practice. Instant prizes, such as cash prizes ranging from $10–<br />
$1,000, Major League Baseball jerseys and World Series hats, will also be awarded. The promotion will run through October<br />
10. (Nation’s Restaurant News 8/27/07)<br />
Taco Bell announced plans to give away free tacos if a baseball player were to steal a base during the World Series, which<br />
began on October 24. Taco Bell said it would award one free Beef Crunchy Taco per customer on designated days after the<br />
first game of the series. The chain also said it would donate $20,000 to the Boys & Girls Clubs of America in the name of the<br />
first player to steal a base. (NRN Daily NewsFax 10/24/07)<br />
Taco Bell is introducing a new marketing strategy that involves doubling its rate of product introductions, expediting pre-rollout<br />
testing and issuing discount coupons. The fast-food chain will also test a frozen beverage and promote health-oriented items.<br />
Yum! Brands Inc., parent of Taco Bell, noted a decline in sales after a regional E. coli outbreak late last year and video footage<br />
of a rat infestation at a New York City branch this year. (NRN Daily NewsFax 11/2/07)<br />
<strong>Menu</strong> Development |<br />
Taco Bell Corp. will switch all of its restaurants to a zero grams trans-fat canola oil. The transition is complete in 100<br />
restaurants. All of the company’s stores are expected to have the new oil by April 2007. (Company Release 11/16/06)<br />
Taco Bell introduced its new Chicken Enchilada Grilled Stuft Burrito. The item features enchilada rice and sauce, chicken,<br />
melted cheese and sour cream. It is priced at $2.99 and will be available through December 31. (NRN Daily NewsFax<br />
11/30/06)<br />
Taco Bell Corp. has pulled all green onions from its units after tests showed that the onions could have been the cause for the<br />
E. coli outbreak. Three samples had tested “presumptive positive” for a possibly lethal form of E. coli. (NRN Daily NewsFax<br />
12/7/06)<br />
Taco Bell plans to broaden the tests of its breakfast menu in three unidentified markets early next year. (NRN Daily NewsFax<br />
12/6/06)<br />
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642
Taco Bell plans to roll out its test of a breakfast menu to an unspecified number of outlets in three new markets next year and<br />
is considering adding the breakfast menu at all 5,800 units. The chain has been testing the menu at locations in Southern<br />
California. (NRN Daily NewsFax 12/06/06)<br />
Taco Bell is planning to switch to zero-trans-fat frying oils at all of its U.S. units by April 2007. The change will affect about 15<br />
menu items. The chain is switching to two types of zero-trans-fat oils, including canola oil which will be used at 4,200<br />
standalone units and a soybean oil at 1,400 co-branded restaurants. Taco Bell is not cutting trans fat from products such as<br />
dressings, sauces, baked items or desserts. (NRN Daily NewsFax 11/17/06; Los Angeles Times 11/17/06; Company Release<br />
11/16/06)<br />
Taco Bell is introducing its new Carne Asada Steak Grilled Taquitos during the Super Bowl. The taquitos feature carne asada<br />
steak, Cheddar cheese, and guacamole, sour cream or salsa wrapped in a grilled tortilla. (Company Release 1/25/07)<br />
Taco Bell is planning to expand its test of breakfast items that are currently being offered at units in Southern California.<br />
According to California bloggers, items being tested include a “Grilled Stuft” burrito with sausage and bacon, a Southwest<br />
sausage burrito, an egg, bacon and cheese burrito and cinnamon “Toastadas.” (Nation’s Restaurant News Online 2/23/07)<br />
Taco Bell is testing a breakfast menu that will offer “Mexican-inspired alternatives” to the traditional breakfast. The company<br />
plans to offer a national breakfast menu that will be tested in three U.S. markets. The company expects that breakfast will add<br />
a possible $208,000 in annual sales per restaurant. (QSR Magazine 4/12/07 p16)<br />
Yum! Brands chains KFC and Taco Bell have completed their switch to a trans-fat-free menu. All 5,500 U.S. KFC locations<br />
have made the transition as well as all 4,200 Taco Bells across the country. Oil now used in Taco Bells is canola oil while oil<br />
used in KFCs is now soybean oil. Currently, 23 Taco Bell menu items are trans-fat-free, including the chicken and beef<br />
crunchy taco, chicken and steak Gordita Supreme, grilled steak soft taco and the chicken and steak Chalupa Supreme.<br />
(Usatoday.com 5/2/07)<br />
Taco Bell is offering the Extreme Cheese and Beef Quesadilla on its Big Bell value menu. The quesadilla features a blend of<br />
three cheeses, nacho cheese sauce and seasoned ground beef. The item is priced at $1.29 for a limited time. It is the first<br />
quesadilla ever to appear on the chain’s Big Bell Value <strong>Menu</strong>. (Meat and Poultry Online 6/4/07)<br />
Yum! Brands is expanding Taco Bell’s tomato deal with a Florida farmworker group to cover all of its restaurant chains,<br />
including Pizza Hut, Long John Silver’s and A&W. Yum! Brands previously agreed to pay a penny-a-pound surcharge for<br />
tomatoes used by Taco Bell after a pressure campaign from the Coalition of Immokalee Workers. Yum! says it is expanding<br />
the surcharge agreement with the hope that other restaurants and supermarkets will follow its example. (AFX.com 5/19/07;<br />
NRN Daily NewsFax 5/22/07)<br />
Taco Bell debuted its Cheesy Beefy Melt, with seasoned beef and rice, melted cheese and sour cream wrapped in a tortilla.<br />
(Company Website)<br />
Taco Bell introduced its Chili Cheese Nachos BellGrande, with nacho cheese, chili, sour cream, tomatoes and beans.<br />
(Company Website)<br />
Franchise Activity |<br />
Taco Bell franchised units in Golden Valley, MN, are undergoing renovations. Franchisee Border Foods Inc. is redesigning all<br />
of its 90 stores in the state. Border Foods updated two locations this past year and plans to renovate six more over the next six<br />
months. Five years ago Taco Bell rolled out the “Bold Choice” building design to help reposition the brand. The revamped<br />
design includes a warmer color palette in the dining area, freestanding dining table and chairs, separating the dining room<br />
from the order area, and an enlarged, landscaped patio. (Franchise Times 11-12/06 p51)<br />
International Activities |<br />
Yum! Brands is planning to open Taco Bell units in India. The company expects to take 18 months to roll out the brand in<br />
India. Yum also said that it wants to open an additional 60–70 KFC outlets in India by 2008. Yum currently has 130 Pizza Huts<br />
and 20 KFC restaurants in operation in India. (The Hindu 11/13/06)<br />
Uno Chicago Grill is re-entering the Cincinnati market. The chain previously had three restaurants in the market. A local Taco<br />
Bell franchisee purchased one unit in West Chester and is planning to develop three to five locations in the next two to three<br />
years. The first of these restaurants is slated to open in early 2007. (Cincinnati Business Courier 11/17/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
643
Taco Bell is reintroducing its restaurants to Mexico after a 15-year hiatus. However, the Americanized version of Mexican food<br />
may be a hard sell in Mexico. Taco Bell left the country after a failed attempt in Mexico City in 1992. The chain is distancing its<br />
offerings from traditional Mexican cuisine, including renaming Taco Bell’s taco as a “tacostada,” a word it invented to link its<br />
crunchy, folded taco, different from the traditional Mexican soft taco, to the tostada, which is served with a flat, fried corn<br />
tortilla. Taco Bell introduced a new slogan, “It’s Something Else,” to convey the message to Mexicans that this is not their<br />
traditional taco. (Signonsandiego.com 10/10/07)<br />
Technology |<br />
Taco Bell plans to roll out a test of contactless payment devices to 100 outlets by the fourth quarter. The chain may eventually<br />
add the devices to its 1,300 company and franchised restaurants. The technology allows customers to use MasterCard<br />
PayPass, Visa Contactless cards and other chip-embedded keychain fobs. Several other chains and c-stores already have the<br />
technology, including McDonald’s, Jack in the Box, 7-Eleven, Sheetz and Wawa. (Nation’s Restaurant News Online 3/14/07;<br />
Company Release 3/19/07)<br />
Personnel |<br />
David Ovens, Chief Marketing Officer<br />
Mike Tattersfield, COO/President<br />
David C. Novak, CEO<br />
Rick Carucci, CFO<br />
Leah Evans, Chief Food Innovation Officer<br />
Taco Bell Corp. named David Ovens Chief Marketing Officer, effective August 6. Previously, Ovens served as Chief Marketing<br />
Officer for Yum! Restaurants International. Ovens will replace Bill Pearce, who is leaving to start a venture in medical<br />
technology. (Company Release 5/4/07)<br />
News & Other |<br />
Taco Bell Corp. has closed five locations in New York and New Jersey due to an E. coli outbreak in mid-November. The<br />
company is sanitizing and replacing ingredients after 35 cases had been reported. (NRN Daily NewsFax 12/5/06)<br />
Taco Bell is reopening all of its voluntarily closed units in New Jersey and on Long Island, NY, after its E. coli outbreak.<br />
Authorities are investigating McLane Food Service, Taco Bell’s distributor. (NRN Daily NewsFax 12/6/06)<br />
Taco Bell has switched to a new supplier and is now deeming its food safe after an E. coli scare. There have been no new<br />
illnesses reported since December 2. (Company Release 12/11/06)<br />
Taco Bell Corp. reported that the “most probable” cause of the E. coli outbreak was packaged lettuce. (NRN Daily NewsFax<br />
12/14/06)<br />
Taco Bell removed green onions from its domestic and Canadian menus because of a recent E. coli breakout at several units<br />
in Pennsylvania, New York and New Jersey. Taco Bell conducted preliminary tests on samples of scallions from the<br />
restaurants and announced that it found a potentially lethal form of E. coli. The chain later discovered that lettuce was the<br />
“most probable” cause of the E. coli outbreak based on a combination of statistical analysis and process of elimination. Taco<br />
Bell was recently given a clean bill of health from the U.S. Center for Disease Control and Prevention. (NRN Daily NewsFax<br />
12/07/06, 12/11/06, 12/14/06, 12/18/06; The Chronicle Herald 12/08/06; Forbes.com 12/11/06; AFX International 12/14/06)<br />
Taco Bell Corp. has been given a clean bill of health from the U.S. Centers for Disease Control and Prevention after its recent<br />
E. coli outbreak. The chain is looking to work with competitors, suppliers and regulators to set standards for safeguarding the<br />
restaurant supply chain. (NRN Daily NewsFax 12/18/06)<br />
Yum! Brand Inc. anticipates opening several KFC-Taco Bell co-branded outlets in 500 small communities nationwide. The<br />
company is developing 30 co-branded locations to open in rural Indiana Kentucky as well as in the North Pole, AK, and<br />
Keystone, FL. There are more than 3,000 Yum! multi-branded restaurants worldwide. (The Courier Journal 12/25/06)<br />
Taco Bell is planning to conduct on-the-farm testing of lettuce after an E. coli outbreak last fall. The chain believes that this<br />
move will help improve product safety. Taco Bell lost $20 million in operating profit because of an E. coli outbreak. (The Dallas<br />
Morning News 2/14/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
644
Taco Bell Corp. will not be liable for losses in some of the 11 lawsuits filed over the E. coli outbreak in November and<br />
December. The restaurants that were named in at least five of the lawsuits are not owned by the franchisor. (NRN Daily<br />
NewsFax 3/1/07)<br />
Yum! Brands has closed several of its franchised restaurants in New York City after a video showing a dozen rats running<br />
around on floors, countertops and tables of a KFC/Taco Bell unit was broadcast on a local television news show. The unit was<br />
ordered closed by the health department. The restaurants, all owned by ADF Franchise Companies, Inc., will remain closed<br />
until they undergo new health inspections. (Associated Press 3/1/07)<br />
Taco Bell is being sued by Boskovich Farms, a grower of green onions, that supplied the chain alleging the chain knowingly<br />
misidentified scallions as the source of the E. Coli outbreak last year. The grower claims that Taco Bell continues to blame the<br />
scallions even after the U.S. Food and Drug Administration cleared the vegetable. The grower also claims that most of its<br />
business is destroyed because of it. (NRN Daily NewsFax 3/23/07)<br />
Yum! Brands will permanently shutter the rat-infested KFC-Taco Bell unit in New York City that was closed in February after<br />
evidence of the infestation was caught on tape. The incident prompted a citywide restaurant inspector crackdown as well as<br />
the temporary closing of about 300 restaurants. (NRN Daily NewsFax 5/07/07; Nation’s Restaurant News Online 5/04/07)<br />
Taco Bell is being sued by a woman who claims her infant daughter was given a Gordita with human blood on the wrapper<br />
and in the food. The Louisville, KY, woman alleges her daughter consumed some of the food on December 26 before noticing<br />
what looked like human blood on the package. An investigation by the Louisville Metro Health Department in December found<br />
a small amount of human blood on the outside of a food wrapper, but it appeared that the blood did not pose a health risk. The<br />
lawsuit requests a jury trial and punitive damages. Taco Bell did not comment. (Courier-journal.com 6/13/07)<br />
A KFC/Taco Bell franchisee is being sued for allegedly allowing an employee to urinate on and spit in the food of a policeman<br />
and his family. The suit against Mid Plains Food and Lodging claims the police officer and his wife and two sons became<br />
“violently ill” after eating at a Nebraska franchise in 2005. The lawsuit claims management was aware of employees urinating<br />
on or spitting in food served to police officers but did nothing to stop the acts. The employee in question pleaded guilty in<br />
March to a similar incident. (Nation’s Restaurant News Online 6/25/07)<br />
Taco Bell and KFC failed to comply with a law requiring companies to limit the amount of credit-card information they print on<br />
customers’ receipts, according to two lawsuits filed earlier this month by customers who claim that expiration dates of their<br />
credit cards were illegally printed on the receipt. Attorneys in both cases are seeking class-action lawsuits with damages of up<br />
to $1,000 for each affected customer on top of expenses and attorney fees. (Courier-journal.com 7/23/07)<br />
McDonald’s Corp. and Taco Bell Corp. announced plans to continue operating under the buying agreements they had forged<br />
with the Coalition of Immokalee Workersto pay a penny-per-pound surcharge for tomatoes to benefit the tomato-pickers. The<br />
announcement comes on the heels of a statement by the Florida Tomato Growers Exchange that its members would not<br />
participate in the agreements. The growers’ statement cited concerns over potential violations of federal and state laws<br />
regarding antitrust, labor, and racketeering, since the workers are paid by the growers and not by the end users of the<br />
tomatoes. (Nation’s Restaurant News Daily NewsFax 11/06/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
645
Taco Bueno<br />
Headquarters<br />
1605 LBJ Freeway Suite 800, Farmers Branch, Texas 75234 USA<br />
Tel: (972)919-4800 Fax: (972)919-4811<br />
www.tacobueno.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 173,230 158,552 140,507<br />
Company-owned ($000) 168,535 158,332 140,507<br />
Franchised ($000) 4,695 220 -<br />
U.S. Number of Units 165 144 133<br />
Company-owned 156 143 133<br />
Franchised 9 1 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,163 1,150 995<br />
Concept Positioning |<br />
Taco Bueno, a limited-service Mexican chain, features a broad menu of traditional Mexican favorites. The privately held chain<br />
operates 165 locations in Texas and Arkansas, only nine of which are franchised.<br />
Taco Bueno restaurants feature a Santa Fe-style Southwestern design. Interiors include wooden tables and chairs, booth<br />
seating and stucco walls. The interior design features contemporary Mexican-style architecture, bright, eye-catching colors,<br />
serpentine stainless-steel counters and black slate tile. Most units range in size from 2,400–3,200 sq. ft.; the current prototype<br />
measures approximately 2,400 sq. ft. Units seat around 80 customers and drive-thru windows are included in most locations.<br />
A new logo was added to rooftops.<br />
Taco Bueno dates back to a taco stand that opened in 1967 in Abilene, TX. It expanded to Oklahoma in 1972. In 1981, Casa<br />
Bonita, the corporate parent, was purchased by Unigate PLC, a British food processor, for $32.5 million and a reported $3.8<br />
million in property. In 1996, it was sold to CKE Restaurants, Inc. for some $42 million in cash. Included in the deal were two<br />
Casa Bonita themed restaurants and three Crystal's Pizzerias (now closed). CKE sold the chain in 2001 to Jacobson Partners<br />
of New York, and in 2005, it was sold again to New York-based investment company Palladium Equity Partners LLC. Also in<br />
2005, Taco Bueno signed its first franchise partner, U.S. Beef Corporation, to expand the chain into northern Arkansas, central<br />
Missouri and Kansas In 2006, Taco Bueno signed five franchise agreements for new markets in New Mexico and North<br />
Carolina, and additional stores in Oklahoma and Texas. The largest deal was with Eat, Drink LLC of Texas, which is to open<br />
nearly 50 stores in Texas by 2013.<br />
<strong>Menu</strong> Positioning |<br />
Taco Bueno features a lunch and dinner menu offering Tex-Mex favorites such as burritos, tacos, quesadillas, its signature<br />
“Muchacos,” salads and platters. Signature items include Taco Salad, Beef Burrito, Steak Fajita Taco, Chicken Muchaco, Beef<br />
Quesadilla and Chilada Platter. There are also eight combo meals available. A kids' menu features Kids Taco, Burrito,<br />
Quesadilla and Cheese Nachos. An all-you-can-drink beverage bar is available as well as the Bueno Chiller—a frosty drink in<br />
flavors like Blue Surf and Cancun Punch. <strong>Menu</strong> Prices range from 69¢–$5.99. Checks average $5.87.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
646
Expansion Plans |<br />
Taco Bueno plans to add nearly 200 locations through 2010. The chain’s plans are as follows: 32 units in 2007; 45 in 2008; 50<br />
in 2009; and 50 in 2010. The chain is looking for franchisees for half of the new locations. (Costar.com 8/20/2007)<br />
Taco Bueno has entered into an agreement to develop at least nine units in the Louisville, KY, area. The Mexican quickservice<br />
chain’s agreement is with Bueno Development Group Louisville LLC and Dallas real estate developer Clint Haggard.<br />
The team plans to open the restaurants within five years. The first unit is slated to open in Jeffersonville, IN, during the first<br />
quarter of 2008. (Company Release 11/06/07)<br />
<strong>Menu</strong> Development |<br />
Taco Bueno is offering several new breakfast meals. Choices include Breakfast Quesadilla, filled with egg, cheese and a<br />
choice of sausage, chorizo or bacon; Breakfast Platter; Bacon, Egg & Queso Burrito; Sausage, Egg & Queso Burrito; Meat<br />
Lover’s Burrito; Potato, Egg & Queso Burrito; and Bean Burrito. Guests can substitute coffee for orange juice or a soft drink for<br />
an additional charge. (Company Website)<br />
Taco Bueno debuted a Cheese Enchilada Platter. The item comes with beans, rice, chips, sour cream and house-made<br />
guacamole. (Company Website)<br />
Franchise Activity |<br />
Taco Bueno has signed a deal with three franchisees to open 16 units in Louisiana. These will be Taco Bueno’s first outlets in<br />
the state. The chain is hoping to have a total of at least 200 total restaurants open by year’s end, including 23 franchised<br />
outlets. Taco Bueno currently has about 179 restaurants in Texas, Oklahoma, Arkansas, Kansas, Missouri and Nebraska.<br />
(Dallas Business Journal 2/27/07; Company Release 2/27/07; NRN Daily NewsFax 2/28/07; Foodservice Equipment &<br />
Supplies 3/07/07)<br />
Technology |<br />
Taco Bueno will use the <strong>Menu</strong>Link.NET back-office application from Radiant Systems Inc. The chain chose the application<br />
because of its food cost reporting capabilities, report scheduling, centralized database and other features. The software will<br />
integrate with the chain’s point-of-sale system to automatically capture and consolidate data from all corporate stores. In<br />
addition, the system is being used for the chain’s 200 reports, payroll and general ledger. (Nation’s Restaurant News 5/21/07<br />
p102)<br />
Personnel |<br />
Richard Peabody, CFO<br />
Tom Veale, V.P. of Purchasing<br />
Ramon Torres, V.P. of Operations<br />
John Miller, President<br />
Scoot Terracinao-Spence, V.P. of Marketing<br />
John Bartel, V.P. Research & Development<br />
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published.<br />
647
Taco Cabana<br />
Headquarters<br />
8918 Tesoro Dr. Suite 200, San Antonio, Texas 78217 USA<br />
Tel: (210)804-0990 Fax: (210)804-1970<br />
www.tacocabana.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 232,800 211,000 213,375<br />
Company-owned ($000) 228,300 211,000 202,500<br />
Franchised ($000) 4,500 - 10,875<br />
U.S. Number of Units 146 130 134<br />
Company-owned 143 130 126<br />
Franchised 3 - 8<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,643 1,625 1,604<br />
Concept Positioning |<br />
Taco Cabana is a limited-service café concept that offers Mexican fare. The chain is owned by Carrols Holdings Corp. and<br />
operates 146 locations in Texas, New Mexico and Ohio.<br />
Units are generally freestanding and average around 3,200 sq. ft and seat about 80 customers. Patios seat an additional 50<br />
patrons in a garden-like setting. The interior is a Mexican cantina atmosphere and is accented with display kitchens, traditional<br />
and contemporary Latin music, tropical landscaping and decorative artifacts. Exteriors are typically bright pink and feature<br />
painted and neon accents. Self-service counters, where customers order and pick-up items are generally separate form the<br />
indoor dining area. A self-serve salsa bar is also located in this area. In addition, units offer drive-through service.<br />
Taco Cabana was founded in 1978 in San Antonio, TX, by Felix Stehling. By 1986, Stehling and other relatives opened nine<br />
units before dividing their holdings into two groups to pursue different expansion strategies. In 1992, Taco Cabana, Inc.<br />
completed the acquisition of TaCasita, Inc., with holdings controlled by a brother of Felix Stehling, and Sombrero Rosa for<br />
conversion to Taco Cabanas. Proceeds were to be used for payment of debts related to its 1992 acquisitions as well as<br />
development of additional company-owned units or acquisitions of complementary restaurant concepts. In 2001, Carrols<br />
Holdings Corp. completed its acquisition of the chain. Currently, there are no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Taco Cabana is open for breakfast, lunch and dinner. Breakfast options include Huevos Rancheros, Fajitas and Eggs, and<br />
Breakfast Tacos. A variety of items are available for lunch and dinner, including salads, tortillas, fajitas, quesadillas, tacos,<br />
burritos, nachos, and flautas. Signature items include Cabana Bowls, Chicken Fajita Salad, Sour Cream Chicken Enchiladas,<br />
Fajita Steak Quesadilla, Carne Guisada Tacos, Bean & Cheese Nachos, and Flautas (available in three, six or 12 packs). The<br />
chain also showcases Tex-Mex dinner plates complete with entrée and rice, beans and tortillas. Specialties include Chicken<br />
Flameanté, a marinated rotisserie chicken dish. Desserts include Tres Leches Cake, Carrot Cake, and Chocolate Cajeta<br />
Cake. Most units serve alcoholic beverages and feature margaritas and Mexican beer. <strong>Menu</strong> prices range from 99¢–$10.99.<br />
Checks average $9.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
648
Personnel |<br />
Alan Vituli, CEO<br />
Paul Flanders, CFO<br />
Daniel Accordino, COO<br />
News & Other |<br />
Taco Cabana reported for the fourth quarter same-store sales declined 0.6%. For the year, same-store sales increased 1.7%.<br />
(Company Release 3/1/07)<br />
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published.<br />
649
Taco John's<br />
Headquarters<br />
808 W. 20 St., Cheyenne, Wyoming 82001 USA<br />
Tel: (307)635-0101 Fax: (307)638-0603<br />
www.tacojohns.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 271,600 249,800 234,100<br />
Company-owned ($000) 7,500 6,500 5,500<br />
Franchised ($000) 264,100 243,300 228,600<br />
U.S. Number of Units 429 418 411<br />
Company-owned 11 10 10<br />
Franchised 418 408 401<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 660 624 593<br />
Concept Positioning |<br />
Taco John’s is a chain of limited-service restaurants offering made-to-order Mexican food. The chain is owned by Taco John’s<br />
International Inc., which operates 429 units, 418 of which are franchised.<br />
Units are typically freestanding, located near shopping malls and retail strip centers. Stores average 1,200-1,600 sq. ft.<br />
Takeout service is available at all units and drive-thru service is available at most locations. Remodeling for newer units will<br />
co-brand Taco John’s and Good Times Burgers & Frozen Custard. All existing units are being converted to the “Taco 7” or<br />
“West-Mex” design, which includes a brighter exterior and interior décor and a salsa bar.<br />
Taco John’s was opened in Northern Colorado in 1968 by John Turner. In 1987, Woodson-Holmes bought Taco John’s<br />
recipes and trade names from Turner and changed its corporate name to Taco John’s International, Inc. Growth is primarily<br />
concentrated in the central and north central regions of the U.S., including the Minneapolis/St. Paul region in Minnesota.<br />
<strong>Menu</strong> Positioning |<br />
Taco John's offers menus for breakfast, lunch and dinner, featuring a variety of salads, burritos, nachos, quesadillas and<br />
tacos. Popular breakfast items include Breakfast Egg Burrito, Grilled Scrambler Burrito and Breakfast Taco. Signature lunch<br />
and dinner options include Chicken Festiva Salad, Meat & Potato Burrito, Crispy or Soft Shell Taco and Super Nachos. In<br />
2006, Taco John's introduced a Steak and Potato Burrito with strips of marinated steak, nacho cheese and crisp Potato Oles,<br />
and a Steak & Rice Burrito, featuring marinated grilled steak, Mexican rice, onions, tomatoes, nacho cheese and sour cream.<br />
Combo meals are also available. Side items include nachos, Potato Oles, refried beans, Texas chili and Mexican rice. Dessert<br />
options include a Choco Taco, Apple Grande and Churro. <strong>Menu</strong> prices range from 99¢–$7.99. Checks average $4.<br />
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published.<br />
650
<strong>Menu</strong> Development |<br />
Taco John’s is selling a Crispy Burrito at select units in Wyoming. The item, which was created by area culinary students, is<br />
available at five units and features shredded beef, Cheddar cheese, onions and Taco John’s Ketchipotle sauce. It comes with<br />
a side of ranch dipping sauce. (Wyoming Tribune-Eagle 1/30/07)<br />
Taco John’s rolled out its popular Mexi Rolls to all of its domestic units. The finger food item includes seasoned beef, beans<br />
and cheese wrapped in a crispy tortilla and paired with a side of nacho cheese dip. It is available as a 2-piece snack, a 4-piece<br />
meal or a 6-piece meal. (Company Release 2/07/07)<br />
Taco John’s has introduced Crunchy Chicken as an ingredient to several new menu items. The chain is offering the item in<br />
burritos, as a meal or in salads, with the highlight being The Crunchy Chicken & Potato Burrito, crispy chicken rolled into a<br />
burrito with Potato Olés and nacho cheese. In addition, the chain is running a promotion for the Crunchy Chicken with<br />
television and radio spots, in-store promotions and a sweepstakes called “Roll with Jeff’s Crew” where guests can upgrade<br />
their purchase of the Crunchy Chicken & Potato Burrito EZ Combo meal to get a 32- or 42-oz. cup showing Jeff Gordon and<br />
his race car. The cup contains a special code that participants can use online to enter to win a trip for two to attend the Ford<br />
400 NASCAR race in Miami on November 18. The promotion runs through September 9. (Franchising.com 6/26/07)<br />
Franchise Activity |<br />
Taco John’s of Mason City, IA, plans to expand in the area. Taco John’s franchisee Rick Kammerer plans to purchase two<br />
pieces of property in order to build a new location. The site is currently occupied by Amerimex Auto, however the company will<br />
relocate to make way for the expansion. (Globegazette.com 8/1/07)<br />
International Activities |<br />
Taco John’s International warned its Iowa stores of a possible E. coli contamination after a Cedar Rapids, IA, unit was<br />
suspected to be the source of illness in 33 people. The company suspects that lettuce is the culprit. The chain had stopped<br />
using green onions a year ago. (NRN Daily NewsFax 12/11/06, 12/12/06, 12/15/06; Nation’s Restaurant News Online<br />
12/11/06)<br />
Personnel |<br />
Barry Sims, CEO/President<br />
Dave Schuh, CFO<br />
Forest King, V.P. of Operations<br />
Brian Dixon, V.P. of Marketing<br />
Erik Lauland, V.P. Research & Development<br />
Taco John’s International promoted Barry Sims to president. Previously, Sims was employed with McGladrey & Pullen. (NRN<br />
Daily NewsFax 2/8/07)<br />
Taco John’s International gave Barry Sims the additional role of chief executive, replacing Paul Fisherkeller. Sims will continue<br />
to serve as president for the company. (NRN Daily NewsFax 9/27/07)<br />
News & Other |<br />
Taco John’s is investigating its lettuce and other produce due to an E. coli outbreak. Several Taco John’s customers in Cedar<br />
Falls, IA, were sickened and 18 were hospitalized. (NRN Daily NewsFax 12/12/06)<br />
Taco John’s plans to use a new produce vendor in response to an E. coli outbreak in three of its Midwest locations. The<br />
company will switch as soon as December 13. (Company Release 12/13/06)<br />
Taco John’s sought to reassure customers that the E. coli outbreak was an isolated incident and is now behind the company.<br />
The company aims to make people feel confident to come back. (Company Release 12/19/06)<br />
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published.<br />
651
Taco John’s still has not identified the source of its E. coli outbreak last year. The FDA said that it is close to figuring out how<br />
the outbreak occurred. The FDA and the state of California have matched the DNA strain of the E. coli bacteria with two<br />
environmental samples from dairy farms near a lettuce growing area in California’s Central Valley. The outbreak occurred at<br />
Taco John outlets in Minnesota, Wisconsin and Iowa. (Company Release 1/12/07)<br />
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published.<br />
652
TacoTime<br />
Headquarters<br />
7730 East Greenway Rd. Suite 104, Scottsdale, Arizona 85260 USA<br />
Tel: (480)443-0200 Fax: (480)443-1972<br />
www.tacotime.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 145,390 135,442 124,500<br />
Company-owned ($000) 572 562 2,200<br />
Franchised ($000) 144,818 134,880 122,300<br />
U.S. Number of Units 254 241 249<br />
Company-owned 1 1 2<br />
Franchised 253 240 247<br />
International Sales ($000) 29,267 26,700 26,500<br />
International Units 109 109 108<br />
Average Sales/Unit ($000) 572 562 500<br />
Concept Positioning |<br />
TacoTime is a limited-service restaurant chain offering Mexican favorites for lunch and dinner. The restaurant has<br />
distinguished itself from competitors by offering freshly prepared tacos, burritos and sides with an emphasis on quality<br />
ingredients. Owned by Kahala Corp., the restaurant operates more than 315 units. TacoTime’s international locations include<br />
Canada, Japan and Kuwait.<br />
Located mostly in the Northwest and western Canada, units are primarily freestanding, but can fit into malls and nontraditional<br />
sites with the Express prototype. Restaurants are marked by a cactus sign and the Southwest-inspired, Adobe-style exterior.<br />
The décor carries into the interior, which contains colorful signage and tile flooring.<br />
TacoTime was founded in 1960 by Ron Fraedrick as a walk-up in Eugene, OR. Franchising started in 1962 in Tacoma, WA. In<br />
1978, the company opened its first international unit in Lethbridge, Canada. That was also the inception of TacoTime<br />
International, Inc. The company has expanded its growth through co-branding, most recently with A&W Restaurants beginning<br />
in 2000 in the Washington state area. In 2003, Kahala Corp. acquired the company.<br />
<strong>Menu</strong> Positioning |<br />
TacoTime's menu items include traditional Mexican favorites such as tacos, burritos, salads and nachos. Signature items are<br />
tacos, available in crispy or soft shells with beef, chicken or fish and burritos, such as the Veggie Burrito, Chicken & Black<br />
Bean Burrito and Chicken BLT Burrito. The nacho selection includes Nachos Deluxe. Salads include the Tostada Salad and<br />
Chicken Fiesta Salad. Sides include Mexi-Fries and Cheddar Mexi-Fries. Desserts offered are Empanadas, Churros, Mexi-Ice<br />
and Choco Tacos. No alcohol is served. <strong>Menu</strong> prices range between 69¢ and $4.58. Checks average $4.<br />
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published.<br />
653
Expansion Plans |<br />
Kahala Corp. is planning to double its brands in size over the next five years. The company owns Blimpie Subs & Salads as<br />
well as several other fast-food brand names, including TacoTime, Frullati Café, Wafflo, Johnnie’s, Great Steak, Ranch *1,<br />
Rollerz and Surf City Squeeze. The company has 140 Blimpie outlets under development and expects to open 400 stores in<br />
2007. Kahala is looking to the Southwest and Northeast to expand its other brands, including growing TacoTime beyond the<br />
West Coast. Kahala also plans to co brand select locations, such as a co-branded unit of TacoTime and Samurai Sam’s<br />
Teriyaki Grill in Mesa, AZ. The company is also exploring international options for its concepts in Australia, Germany and<br />
China. (AZCentral.com 12/11/06)<br />
Personnel |<br />
Doug Ducey, CEO<br />
Walt Schultz, CFO<br />
John Brunn, V.P. of Purchasing<br />
Chris Henry, V.P. of Operations<br />
Kate Unger, V.P. of Marketing<br />
John Brunn, V.P. Research & Development<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
654
Tastee Freez<br />
Headquarters<br />
4440 Von Karman Avenue Suite 222, Newport Beach, California 92660 USA<br />
Tel: (949)851-2614 Fax: (949)851-2618<br />
www.tastee-freez.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 127,500 125,000 118,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 127,500 125,000 118,000<br />
U.S. Number of Units 440 440 273<br />
Company-owned - - -<br />
Franchised 440 440 273<br />
International Sales ($000) 400 350 500<br />
International Units 2 2 2<br />
Average Sales/Unit ($000) 350 350 470<br />
Concept Positioning |<br />
Tastee Freez is one of America's oldest franchise operations, specializing in soft-serve ice cream and other frozen dairy treats.<br />
Today there are Tastee Freez locations in more than 20 states and Panama, and have evolved from a quick-service operator<br />
to become more of a fast-casual format, featuring hamburgers, chicken sandwiches and a wider variety of ice cream treats.<br />
Tastee Freez appeals to a wide customer base, from children to older adults. Galardi Group owns and franchises the chain,<br />
which operates more than 60 units in several states.<br />
Units are freestanding and are typically located in strip shopping centers or near shopping malls. The concept began as a<br />
small, white walk-up ice cream stand. Some older units still maintain this design, but the majority of newer Tastee Freez<br />
locations average 1,200 sq. ft. and offer seating for 30 customers. Most of these new units are co-branded with<br />
Wienerschnitzel, the classic fast-food hot dog chain.<br />
Tastee Freez was created in 1950 when Leo Moranz and Harry Axene developed a new soft serve ice cream pump and<br />
freezer. They allowed the use of their Tastee Freez name to franchisees in exchange for rent payments on the ice cream<br />
pump, and little white stands began emerging, selling soft-serve ice cream cones and sundaes. In 2003, Tastee Freez was<br />
acquired by California's Galardi Group Franchise and Leasing for an undisclosed sum.<br />
<strong>Menu</strong> Positioning |<br />
The menu at Tastee Freez, open for lunch and dinner, varies from store to store. Standard items include hamburgers and<br />
cheeseburgers, hot wings, hot dogs, grilled sausages, corn dogs, fried chicken, fish dinners and a full assortment of side<br />
dishes, including mashed potatoes, biscuits, fries, onion rings and coleslaw. Some units also serve Tex-Mex items like tacos,<br />
flautas, tortas and quesadillas. But the signature offering is the chain's extensive selection of soft-serve ice cream treats,<br />
including cones, sundaes and splits. Cones are available in small, medium and large sizes and are served in a choice of<br />
regular cone, waffle cone or cup. Sundaes and splits include customer favorites such as the Banana Royal Split and the Hot<br />
Fudge Brownie Cake Sundae. Another popular line of treats is its Freezees selection—including its Chocolate Brownie<br />
Freezee, Hawaiian Freezee and Grasshopper Freezee. Beverages include malts, milkshakes, sodas, Slushees and Coffee<br />
Coolers, made with coffee, vanilla ice cream and a choice of flavoring. No alcohol is served and no kids’ menu is available at<br />
most units. <strong>Menu</strong> prices range from $1–$4.99. Checks average $3.29.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
655
<strong>Menu</strong> Development |<br />
Tastee Freez added a Pumpkin Spice Shake for a limited time. The item was priced at $2.49. (Company Promotion)<br />
Personnel |<br />
John N. Galardi, CEO<br />
Bob LeRash, V.P. of Operations<br />
Dennis Tase, COO<br />
Tom Amberger, V.P. of Marketing<br />
News & Other |<br />
Tastee-Freez’s original location in Boonville, CA, was damaged by arson on August 12. Most of the building’s structure was<br />
saved, however it is unlikely that the location will open again this summer. (Tristate-media.com 8/15/07)<br />
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published.<br />
656
TCBY<br />
Headquarters<br />
2855 E. Cottonwood Pkwy. Suite 400, Salt Lake City, Utah 84121 USA<br />
Tel: (801)736-5600 Fax: (801)736-5970<br />
www.tcby.com<br />
Ownership: Private<br />
Segment: Limited Service Frozen Dessert<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 230,000 255,500 267,000<br />
Company-owned ($000) - 1,500 2,000<br />
Franchised ($000) 230,000 254,000 265,000<br />
U.S. Number of Units 921 1,267 1,368<br />
Company-owned - - 8<br />
Franchised 921 1,267 1,360<br />
International Sales ($000) 40,000 35,500 35,000<br />
International Units 204 186 204<br />
Average Sales/Unit ($000) 210 194 195<br />
Concept Positioning |<br />
TCBY is a chain of soft-serve yogurt stores under the trade names TCBY Treats and TCBY Yogurt. Mrs. Fields Famous<br />
Brands owns, operates and franchises the chain. The company operates 1,125 TCBY locations worldwide, all of them<br />
franchised.<br />
Units are located in freestanding buildings, shopping centers and enclosed malls. Décor includes bright, bold colors and strong<br />
brand signage. A typical unit occupies 500–900 sq. ft. and provides seating for 24–44 customers. Each store is equipped with<br />
a freezer for the sale of pre-packaged items and novelty products. Kiosks average 250 sq. ft. with off-site storage and<br />
preparation space. Some newer outlets have drive-thru or double drive-thru facilities.<br />
TCBY opened its first company-owned store in 1981 in Little Rock, AR. In 1990, a joint venture agreement was completed for<br />
the development of at least 200 stores over the next 12 years in Japan. In 1991, the company undertook an agreement with<br />
Mrs. Fields' Development Corp. to add the Mrs. Fields line of baked goods in TCBY stores. In early 1997, it acquired two-unit<br />
Juice Works. In 2000, Mrs. Fields Famous Brands acquired TCBY. Currently, the company is looking for franchisees.<br />
<strong>Menu</strong> Positioning |<br />
TCBY is open for lunch and dinner. Its menu showcases a variety of dessert treats including ice cream, frozen yogurt, sorbet,<br />
smoothies, cakes, pies and a wide array of toppings. Signature items include Pralines & Cream ice cream, Pistachio<br />
Perfection ice cream, Black Cherry frozen yogurt, Peanut Butter frozen yogurt, Juicy Orange sorbet, Ripe Raspberry sorbet,<br />
and A Lotta-Colada smoothie. Toppings include assorted sprinkles, Butterfinger pieces, coconut and graham crackers.<br />
Signature pies include Chocolate Decadence and Strawberry Shortcake. A kid's menu is also featured, highlighted by ice<br />
cream flavors such as Rainbow Cream and Psychedelic Sorbet. <strong>Menu</strong> prices range from $2.99–$4.99 and checks average $3.<br />
<strong>Menu</strong> Development |<br />
TCBY added a Chocolate Dipped Strawberry Shiver Treat to its menu. (Company Website)<br />
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657
TCBY debuted its Beriyo Smoothies, made with frozen yogurt and real fruit and fruit juices. The smoothies are also loaded<br />
with calcium, protein and Vitamin D. Ten flavor combinations are offered, including Strawberry Bananza, Black ’N’ Blueberry,<br />
Mangolada, Pink Pineapple, Strawberry Fling and Berrylicious. (Company Website)<br />
Personnel |<br />
Steve Russo, CEO<br />
David Safari, V.P. of Operations<br />
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published.<br />
658
Texas Roadhouse<br />
Headquarters<br />
6040 Dutchmans Lane, Louisville, Kentucky 40205 USA<br />
Tel: (502)426-9984 Fax: (502)515-7195<br />
www.texasroadhouse.com<br />
Ownership: Public<br />
Segment: Full Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 935,000 780,160 650,190<br />
Company-owned ($000) 540,000 448,341 354,190<br />
Franchised ($000) 395,000 331,819 296,000<br />
U.S. Number of Units 251 221 193<br />
Company-owned 145 127 107<br />
Franchised 106 94 86<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,970 3,891 3,679<br />
Concept Positioning |<br />
Texas Roadhouse is a full service family steakhouse specializing in hand-cut steaks and ribs. Texas Roadhouse Inc. is the<br />
parent company of Texas Roadhouse. The chain's motto is "Legendary Food, Legendary Service," and its reputation is built<br />
around high-quality, moderately-priced meals served in a friendly and attentive atmosphere. <strong>Menu</strong> items are largely made from<br />
scratch and many entrees are based on proprietary recipes. <strong>Menu</strong> items boast large portions at reasonable prices and appeal<br />
to a wide demagraphic of diners. Texas Roadhouse Inc. operates approximately 58% of its units; the remaining stores are<br />
franchised. Texas Roadhouse operates more than 250 locations nationwide. Units are clustered in the Mideast and South,<br />
with a strong and emerging presence in the Southwest and Plains states.<br />
Units are freestanding buildings and feature a rustic Southwestern lodge decor. Interiors are accentuated with handpainted<br />
murals, neon signs, Southwestern prints, rugs and artifacts. Jukeboxes continuously play upbeat country hits. Texas<br />
Roadhouse full service restaurants are open for dinner starting at 4:00pm. Expansion plans call for the continuing rollout of the<br />
format in existing markets. The company mascot, Andy Armadillo, is featured on a line of clothing and other items offered for<br />
sale, and management sponsors a cycling team, short-track car racing and a racing team with the Texas Roadhouse name on<br />
the car. In addition, Texas Roadhouse also has a unit operated by country singer Willie Nelson, who opened an outlet in<br />
Austin, TX, in 2004. All Texas Roadhouse units include a shrine-like area dedicated to Nelson.<br />
The company was founded in 1993 Kent Taylor who opened the first Texas Roadhouse in Clarkson, Indiana. The steakhouse<br />
chain operates 260 locations in 44 states, including Texas. In May 2004, Texas Roadhouse Holdings LLC and its Louisville,<br />
KY-based affiliates filed for an IPO and merged into an entity now known as Texas Roadhouse Inc. Long-term, the company<br />
hopes to operate 800 to 1,000 units nationwide.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
659
<strong>Menu</strong> Positioning |<br />
The full-service dinner menu at Texas Roadhouse features a variety of appetizers, salads, steaks, ribs, burgers, chicken,<br />
country-style dinners, and seafood. The chain's signature items include its Rattlesnack Bites appetizer, Texas T-Bone steak,<br />
Smokehouse Burger, Southwest Chicken Grill sandwich, Oven Roasted Chicken dinner and Fried Catfish Fillet. The menu<br />
boasts ice cold beer and legendary margaritas. Other beverage items include soft drinks, coffee and tea. A kids' menu offers<br />
Sirloin Steak, Cheeseburger, Hot Dog, Chicken Strips and Macaroni & Cheese. Side items include: Cup of Chili, baked potato,<br />
steak fries, mashed potatoes, and sauteed Mushrooms. Desserts include Granny's Apple Classic, Strawberry Cheesecake<br />
and Big Ol' Brownie. <strong>Menu</strong> prices are between $2.79-$18.99. Checks average $18.<br />
<strong>Menu</strong> Development |<br />
Texas Roadhouse introduced two new entrées to its menu. Country Fried Chicken features all-white chicken breast, handbattered,<br />
fried crisp and topped with cream gravy, with a choice two side items. The Grilled Shrimp dish includes two grilled<br />
skewers of seasoned shrimp, drizzled with butter and served over rice with a choice of two side items. (Company Website)<br />
Personnel |<br />
G.J. Hart, CEO<br />
Scott Colosi, CFO<br />
Steve Ortiz, V.P. of Operations<br />
Chris Jacobson, V.P. of Marketing<br />
Jim Broyles, V.P. Research & Development<br />
Debbie Hayden, General Buyer<br />
News & Other |<br />
Texas Roadhouse Inc. reported for the third quarter ended September 26 net earnings rose 30% to $9.1 million from $7.0<br />
million for the same period last year. Revenues increased 30% to $148.4 million from $114.3 million. Same-store sales grew<br />
2.3%. (Company Release 10/30/06)<br />
Texas Roadhouse Inc. reported for the fourth quarter ended December 26 net earnings rose 23.8% to $7.8 million from $6.3<br />
million for the same period last year. Revenues increased 29.8% to $152.6 million from $117.6 million. Same-store sales grew<br />
3.3%. (Company Release 2/20/07)<br />
Texas Roadhouse reported for the first quarter ended March 28 net earnings rose to $12.3 million from $8.2 million for the<br />
same period last year. Revenues increased 19% to $178.3 million from $149.4 million. Same-store sales grew 0.9%.<br />
(Associated Press 4/30/07)<br />
Texas Roadhouse Chief Executive Officer Gerard Johan Hart sold 177,419 shares of the company’s stock on May 9, 10 and<br />
11 for $15.20–$15.49 apiece. (Associated Press 5/14/07)<br />
Texas Roadhouse Inc. entered into a five-year unsecured revolving credit agreement that will allow it to borrow up to $250<br />
million with an option to increase that amount by $100 million. The agreement became effective on May 31. It also replaces<br />
Texas Roadhouse’s previous five-year agreement. (Associated Press 6/6/07)<br />
Texas Roadhouse ranked first and Olive Garden ranked second in customer service according to the latest quarterly fullservice<br />
restaurant survey by Corporate Research International. More than 3,000 consumers were asked to rate restaurants,<br />
retailers, banks, hotels and airlines. (OrlandoSentinel.com 6/27/07; QSRMagazine.com 6/28/07)<br />
Texas Roadhouse Inc. completed its acquisition of nine franchised restaurants on July 2 for $22.6 million. The units included<br />
seven in Indiana and one each in Kentucky and Missouri. (Company Release 7/2/07)<br />
Texas Roadhouse Inc. reported for the second quarter ended June 26 net earnings increased 5.0% to $9.2 million from $8.8<br />
million for the same period last year. Revenues grew 23.0% to $181.0 million from $146.7 million. Same-store sales rose 1.9%<br />
at company-owned units and 1.8% at franchised restaurants. (Company Release 7/30/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
660
Tim Hortons<br />
Headquarters<br />
874 Sinclair Rd., Oakville, ON, Canada L6K 2Y1 Canada<br />
Tel: (905)845-6511 Fax: (905)845-0265<br />
www.timhortons.com<br />
Ownership: Public<br />
Segment: Limited Service Donut<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 246,343 228,000 163,000<br />
Company-owned ($000) 32,000 29,000 27,000<br />
Franchised ($000) 214,343 199,000 136,000<br />
U.S. Number of Units 336 288 251<br />
Company-owned 61 62 67<br />
Franchised 275 226 184<br />
International Sales ($000) 3,876,000 3,440,000 3,285,000<br />
International Units 2,711 2,597 2,470<br />
Average Sales/Unit ($000) 944 900 792<br />
Concept Positioning |<br />
Tim Hortons is a chain of limited-service restaurants featuring freshly baked goods such as donuts, muffins, pies, croissants,<br />
tarts, cookies, cakes, bagels, coffee and cappuccino. Tim Hortons is a public company that operates more than 2,500 Tim<br />
Hortons restaurants throughout Canada and the United States.<br />
Units range from 35-ft. kiosk and cart installations to 3,090 sq. ft. full-sized restaurants with baking capacities for several<br />
satellite units. Its satellite prototypes average 550–2,250 sq. ft.; the majority, however, are standard and typically average<br />
2,800 sq. ft. In addition, the company is developing co-branded units with Wendy’s. These combo units average 5,200 sq. ft.<br />
and house both brands under the same roof, thus taking advantage of each brand’s peak sales period. The unit has a full<br />
kitchen, serving counter and drive-through window for each concept but share a 104-seat dining room.<br />
The first Tim Hortons opened in 1964 in Hamilton, Ontario, Canada. In 1995, the company merged with Wendy’s International,<br />
Inc., and in 1997, it announced a rollout of the concept into the U.S. In 2005, Wendy's International announced there would be<br />
an initial public offering for Tim Hortons, and in 2006, Tim Hortons was spun off as a separate company. Also in 2006, Tim<br />
Hortons debuted a new location in Afghanistan, serving Canadian troops stationed there. The company estimates that the<br />
number of U.S.-based Tim Hortons units should double in 2007.<br />
<strong>Menu</strong> Positioning |<br />
Tim Hortons specializes in coffee, donuts/Timbits, muffins, pies, croissants, tarts, cookies, cakes and bagels. Some units also<br />
offer sandwiches, soups and fresh-baked breads. Beverages include the Hot Smoothee, a non-caffeinated drink available in<br />
butter caramel, hazelnut, orange and raspberry flavors. Signature items include Iced Cappuccino, Apple Fritter & Boston<br />
Cream donut, Timbits (which are bite-sized donut holes), Cream of Broccoli soup and Albacore Tuna Salad sandwich for<br />
lunch. <strong>Menu</strong> prices range from 75¢–$6.09. Checks average $4.<br />
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published.<br />
661
Expansion Plans |<br />
Tim Hortons plans to open at least 80 units in the U.S. and about 140 outlets in Canada. The chain’s goal is to have a total of<br />
4,000 restaurants, including 500 in the U.S., by 2008. Tim Hortons currently has 305 units in the U.S. and 2,637 outlets in<br />
Canada. (Bloomberg.com 2/07/07)<br />
Tim Hortons of Canada units will appear in Wal-Mart Canada Corp. Supercenters beginning this fall. The first units will open in<br />
Lethbridge and Edmonton, Alberta, offering sandwiches, homestyle soups, baked goods, coffee and specialty teas. (Food<br />
Institute Report 9/24/07)<br />
Promotion Plans |<br />
Tim Hortons has launched its Roll Up The Rim To Win contest. Customers who buy a medium, large or extra large hot<br />
beverage get a chance to win one of 30 million prizes. Prizes include 30 Toyota Camry Hybrid, 100 Panasonic Plasma<br />
televisions, 10,000 iPod nanos and 500 cash prizes of $1,000. The promotion will run while cup supplies last. Prizes are<br />
redeemable until May 27, 2007. (Company Release 2/28/07)<br />
<strong>Menu</strong> Development |<br />
Tim Hortons introduced a Cinnamon Roll flavor to its beverage menu. The flavor blends brown sugar with cinnamon and can<br />
be added to the chain’s coffee, Hot Smoothee beverages and hot chocolate. Other beverage flavors include Butter Caramel,<br />
French Vanilla, Raspberry and Hazelnut. (Company Website)<br />
Tim Hortons added Chili to its menu. The item is prepared with slow-cooked beef and comes with a side of garlic toast.<br />
(Company Website)<br />
Tim Hortons introduced Butter Caramel Iced Capp Supreme, with butter caramel flavor, whipped topping and caramel drizzle.<br />
It is also available in Mint Chocolate. (Company Website)<br />
Tim Hortons introduced Chicken Salad and Egg Salad Wraps to its menu. The Chicken Salad Wrap features all-white chicken<br />
topped with lettuce and tomato. The Egg Salad Wrap comes with lettuce, tomato and cucumber. (Company Website)<br />
Tim Hortons introduced a Chicken Fajita Wrap, made with seasoned all-white chicken strips, sautéed peppers and onions and<br />
Cheddar cheese. (Company Website)<br />
International Activities |<br />
Tim Hortons Inc. is suing CanWest Global Communications Corp., Standard Radio Inc. and broadcaster Bill Carroll for $105<br />
million in general and punitive damages. The chain alleges that it has been damaged by “false and misleading” news coverage<br />
of its efforts to serve coffee to soldiers in Afghanistan. According to the suit, CanWest claimed on its websites that the chain<br />
was paid $4 million in taxpayer dollars to open the coffee outlet for soldiers. Carroll picked up the story for his radio talk show<br />
on Standard’s CFRB station as well as on Global Nation. Tim Hortons said that it asked for an apology and retraction but<br />
received none. (Globeandmail.com 3/07/07)<br />
Tim Hortons kiosks continue to be implemented in Ireland’s SPAR convenience store locations. SPAR Ireland opened its 50th<br />
Tim Horton’s donut and coffee self-serve kiosk in SPAR Ratoath, County Meath. The concept will be available to SPAR store<br />
owners nationwide over the next few years. The kiosks are operated by independent SPAR retailers, and the launch is being<br />
managed by Cuisine de France, a leading provider of “lifestyle” foods in the Irish marketplace. (Company Release 4/30/07)<br />
Technology |<br />
Tim Hortons introduced its new contactless credit cards. The company believes that the credit cards will increase sales by<br />
2.5% by 2009 and save 5–10 seconds on service times. (UBS Equity Research 3/26/07)<br />
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published.<br />
662
Personnel |<br />
Cynthia Devine, CFO<br />
Bill King, V.P. of Purchasing<br />
Roland M. Walton, V.P. of Operations<br />
Paul D. House, President<br />
William A. Moir, V.P. of Marketing<br />
David Clanachan, V.P. Research & Development<br />
News & Other |<br />
Tim Hortons Inc. reported for the third quarter ended October 1 a net loss of 21.8% to $51.8 million from $66.3 million for the<br />
same period last year. Revenues increased 7.1% to $413.6 million from $386.1 million. Same-store sales increased 9.2%.<br />
(Company Release 10/26/06)<br />
Tim Hortons reported December same-store sales grew 10.9%. (Company Release 1/5/07)<br />
Tim Hortons Inc. reported for the fourth quarter ended December 31 net earnings rose to $67.9 million from $16.4 million for<br />
the same period last year. Revenues increased 15.5% to $466.5 million from $403.9 million. Same-store sales grew 7%.<br />
(Company Release 2/7/07)<br />
Tim Hortons Inc.’s board of directors approved a dividend of 6¢. The company will pay the dividend May 30 to shareholders of<br />
record on May 14. Tim Hortons’ shares fell 8¢ to $31.92 after rising 29¢ to close at $32 in after-hours trading. (Associated<br />
Press 5/3/07)<br />
Tim Hortons Inc. is having difficulty building a customer base in the Connecticut, Rhode Island and Massachusetts markets.<br />
The company will review the viability of some or all of these markets if the situation does not improve. One analyst estimates<br />
that Tim Hortons could save $20 million a year by leaving the New England market. The main competition of Tim Hortons in<br />
the New England market is Dunkin’ Donuts. Tim Hortons acquired the Rhode Island-based Bess Eaton chain in 2004, and<br />
converted units to the Tim Hortons brand. (Reportonbusiness.com 5/29/07)<br />
Tim Hortons is considering shuttering underperforming locations in southern New England if sales do not improve. The<br />
Canadian coffee-and-donut chain faces tough competition in the region from Dunkin’ Donuts, which is headquartered in<br />
Canton, MA. (NRN Daily NewsFax 5/30/07; Reportonbusiness.com 5/29/07)<br />
Wal-Mart Canada Supercenters plans to add Tim Horton’s restaurants to some Canadian stores by the end of 2007. The first<br />
outlets are slated to open this fall in Brockville, Ontario, and Lethbridge and Edmonton, Alberta. Tim Horton’s is one of<br />
Canada’s largest quick-service chains, offering premium coffee, soups, sandwiches and baked goods. There are currently<br />
2,733 Tim Horton’s restaurants in Canada and 345 in the U.S. (Yahoo! Finance 9/13/07)<br />
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published.<br />
663
Togo's Eatery/Dunkin' Deli<br />
Headquarters<br />
130 Royall St., Canton, Massachusetts 02021 USA<br />
Tel: (781)737-3000 Fax: (781)737-4361<br />
www.togos.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 156,000 166,000 167,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 156,000 166,000 167,000<br />
U.S. Number of Units 279 356 437<br />
Company-owned - - -<br />
Franchised 279 356 437<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 450 420 400<br />
Concept Positioning |<br />
Togo’s is a limited-service sandwich chain specializing in freshly prepared soups, sandwiches and salads. Dunkin’ Brands, the<br />
parent company of Togo’s, operates and franchises 280 locations nationwide.<br />
Units are primarily freestanding and average 1,500 sq. ft. with seating for approximately 25. Most Togo eateries are multibranded<br />
with Baskin-Robbins or Dunkin’ Donuts. Takeout and catering menus are available.<br />
Michael T. Cobler founded Togo's in 1971 in San Jose, CA. Franchising began in 1977. That same year, the chain was<br />
acquired by Dunkin’ Brands, formerly Allied Domecq PLC, which is the parent of Baskin-Robbins and Dunkin’ Donuts. In 2005,<br />
Dunkin’ Brands was acquired by Pernod Ricard and Fortune Brands, who later sold Dunkin' Brands to a group of private-equity<br />
firms for $2.43 billion. The buyers include Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners. In 2006,<br />
parent company Dunkin' Brands announced the impending sale of its Togo brand. After years of revamps and repositioning<br />
efforts for Togo, Dunkin' is seeking a buyer for the chain, in order to fully focus on Dunkin' Donuts and Baskin-Robbins.<br />
<strong>Menu</strong> Positioning |<br />
Togo's menu offers soups, salads and plain or toasted sandwiches. Signature salads include Oriental Chicken Salad, Farmer's<br />
Market Salad and Chicken Caesar Salad. Popular sandwiches are the Meatball Sandwich, Albacore Tuna Sandwich and<br />
toasted Chicken Bruschetta Sandwich. A kids’ menu features the choice of four different sandwiches, a fountain drink and a<br />
cookie. Side items include potato chips and cookies. Catering and takeout are also available. <strong>Menu</strong> prices range from $1.69–<br />
$7.99 and checks average $6.97.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
664
<strong>Menu</strong> Development |<br />
Togo’s debuted Salad Wraps, a new line of wrap sandwiches. The names of the wraps are identical to the salad offerings<br />
already listed on the menu. Wraps include Santa Fe Chicken Salad, Mediterranean Tuna Salad, Cobb Salad, Asian Chicken<br />
Salad, roasted chicken Caesar salad, taco salad and Farmers Market Salad. The wraps are priced from $5.49–$5.99. (NRN<br />
Daily NewsFax 3/28/07)<br />
Personnel |<br />
Jon Luther, CEO<br />
Kate Smith Lavelle, CFO<br />
Will Kussell, COO<br />
Joe Scafido, Chief <strong>Menu</strong> & Concept Officer<br />
Frances Allen, Brand Marketing Officer<br />
Joe Scafido, Executive Chef & Purchasing<br />
Stan Frankenthaler, General Buyer<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
665
Tony Roma's<br />
Headquarters<br />
9304 Forest Lane Suite 200, Dallas, Texas 75243 USA<br />
Tel: (214)343-7800 Fax: (214)343-2680<br />
www.tonyromas.com<br />
Ownership: Private<br />
Segment: Full Service BBQ<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 182,620 251,000 281,421<br />
Company-owned ($000) 52,554 51,000 80,361<br />
Franchised ($000) 130,066 200,000 201,060<br />
U.S. Number of Units 83 110 141<br />
Company-owned 20 22 29<br />
Franchised 63 88 112<br />
International Sales ($000) 175,255 188,000 146,168<br />
International Units 118 150 114<br />
Average Sales/Unit ($000) 2,211 2,000 1,939<br />
Concept Positioning |<br />
Tony Roma’s is a chain of full-service family-style restaurants that specializes in baby back ribs as well as char-grilled steaks,<br />
barbecued chicken and seafood The chain is owned by Romacorp Inc., which operates 201 units worldwide, 63 of which are<br />
franchised.<br />
Units vary in size but average 3,000-13,000 sq. ft. with seating for 120-300 patrons. A separate bar area at many units offers<br />
additional seating.<br />
Tony Roma’s was opened in Miami in 1972 by former Playboy Club manager Tony Roma. Three years later, the company was<br />
purchased by Dallas Cowboys owner Clint Murchison and attorney Jack Peeples. NCP International, Inc., the largest<br />
franchisee of Pizza Hut, acquired the chain for $20 million in 1993 and spun it off in 1998 to Sentinel Capital Partners. As part<br />
of a Chapter 11 bankruptcy restructuring, Sentinel sold Romacorp to bondholders in 2006. Romacorp Inc. recently signed a<br />
major international franchise deal for the development of Tony Roma’s units in Saudi Arabia.<br />
<strong>Menu</strong> Positioning |<br />
Tony Roma's is open for lunch and dinner. Its barbecue-centric menu features ribs, steaks, chops, burgers, seafood, specialty<br />
sandwiches, appetizers, soups and salads. Signature items include spinach and artichoke dip, baked-potato soup, Caesar<br />
salad, grilled tuna sandwich, bacon Swiss burger, fried chicken tenders, grilled Gulf shrimp, St. Louis ribs, sirloin steak and<br />
pork rib chops. Side items include ranch-style beans, french fries, cinnamon apples, and garlic mashed potatoes. desserts<br />
include brownie sundae, apple crisp and cheesecake. A kid's menu features hamburger, pizza, ribs, macaroni & cheese and<br />
fried shrimp. Full liquor service is available. <strong>Menu</strong> prices range from $4.99-$19.99. Checks average $16.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
666
<strong>Menu</strong> Development |<br />
Tony Roma’s plans to remove trans fats from its menus by mid-summer. The chain tested trans-fat-free products in its test<br />
restaurants during the past year. It has already incorporated trans-fat-free oils and products into several of its corporate<br />
locations. (Company Release 4/19/07; Nation’s Restaurant News Online 4/19/07)<br />
International Activities |<br />
Romacorp Inc. opened four new Tony Roma restaurants in Glasgow, Scotland; Kuala Lumpur, Malaysia; Riyadh, Saudi<br />
Arabia; and Maui, Hawaii. The Glasgow location is inside a mall with an indoor ski hill and is the second for the company in the<br />
U.K. The Kuala Lumpur unit is the second unit in that country; two more are planned. The unit in Hawaii is on the second floor<br />
of a historic building with a view of the Pacific Ocean. (Company Release 5/15/07)<br />
Personnel |<br />
Bob Gallagher, Executive Chef<br />
Kenneth (Ken) Myres, CEO<br />
Randy Steinbrenner, V.P. of Marketing<br />
Rich Schwarte, VP of Accounting<br />
Phil Heckathorne, V.P. of Company Operations<br />
Romacorp Inc., parent of Tony Roma’s, promoted Marc Buehler to President and Chief Executive Officer. Previously, Buehler<br />
served as Chief Operating Officer for the company. Buehler takes the place of David Head, who left the company last year to<br />
take the top job at Captain D’s Seafood. (Nation’s Restaurant News 5/14/07 p68)<br />
Tony Roma parent, Romacorp Inc., promoted Phil Heckathorne to Vice President of Company Operations and Randy<br />
Steinbrenner to Vice President of Marketing. Previously, Heckathorne served as Director of Operations for Tony Roma’s and<br />
Steinbrenner served as Senior Marketing Manager for Applebee’s International. (NRN Daily NewsFax 7/3/07)<br />
News & Other |<br />
BD’s Mongolian Grill franchisee, Tarpon Springs, FL-based Mongrill LLC, acquired a former Tony Roma’s unit in Altamonte<br />
Springs, FL, from Romacorp Operating Co. Inc. (Food Institute Report 9/24/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
667
Tumbleweed Southwest Grill<br />
Headquarters<br />
2301 River Rd. Suite 200, Louisville, Kentucky 40206 USA<br />
Tel: (502)893-0323 Fax: (502)897-0237<br />
www.tumbleweedrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 92,000 88,000 92,500<br />
Company-owned ($000) 54,000 47,000 49,000<br />
Franchised ($000) 38,000 41,000 43,500<br />
U.S. Number of Units 48 50 55<br />
Company-owned 26 28 28<br />
Franchised 22 22 27<br />
International Sales ($000) 6,000 6,000 6,000<br />
International Units 4 4 4<br />
Average Sales/Unit ($000) 1,916 1,680 1,665<br />
Concept Positioning |<br />
Tumbleweed Southwest Grill is a full-service Mexican cuisine restaurant. As a privately held company, Tumbleweed boasts a<br />
relaxing atmosphere that offers Mexican food and Southwest cuisine, including a large menu of Mesquite-grilled steaks,<br />
chops, chicken and seafood cooked over real Mesquite logs on a specially designed grill. Tumbleweed Restaurants is<br />
headquartered in Louisville, KY. The restaurant owns most of its locations and franchises the rest.<br />
Restaurants are largely freestanding and are found in mid-sized metropolitan areas. The company develops three different<br />
prototypes, depending on the market size. Target markets for these prototypes are primarily metropolitan markets in the<br />
Midwest, Mid-Atlantic and Southeast. The “mini” prototype seats 128–194; the “midi” prototype seats 210–244; and the “maxi”<br />
prototype seats 252–384. Each unit carries the "Old West" logo and décor and features Native American and cowboy<br />
memorabilia and wildlife replicas. Rough-hewn timber and a stone fireplace add to the soothing, southwest atmosphere.<br />
Tumbleweed Southwest Grill is open for lunch and dinner seven days a week.<br />
The first Tumbleweed restaurant opened in 1975 in New Albany, IN, and the second opened soon after in Louisville, KY. In<br />
1995, Tumbleweed, LLC, which was owned by an investor group headed by current management, acquired the rights to the<br />
chain. The company incorporated in 1997 as Tumbleweed, Inc. and in mid-1999, issued its first IPO of 1.2 million shares. In<br />
2003 the company went private. Future expansion plans have not been disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Tumbleweed’s is open for lunch and dinner, seven days a week. Along with appetizers and a variety of salads, signature menu<br />
items include the chicken breast Cheyenne, served with mushrooms and pepper cheese and the mountain trout. Also menued<br />
are ribs, pork chops, enchiladas, burritos, chimichangas, tacos and fajitas. Mesquite-based entrées are served with Texas<br />
toast and include a choice of baked potato, baked sweet potato, fries, rice and black, refried or baked beans. Tex-Mex entrées<br />
are served with rice and choice of beans. Alcoholic beverages are available. Signature drinks are the Shot’aritas and<br />
Tex’aritas, a 45-oz. margarita. A kids’ menu features burritos, tacos, chicken strips and hamburgers, all for $1.99. <strong>Menu</strong> prices<br />
range from $13.28–$26.86. Checks average $9.04.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
668
Uno Chicago Grill<br />
Headquarters<br />
100 Charles Park Rd., Boston, Massachusetts 02132 USA<br />
Tel: (617)323-9200 Fax: (617)469-3949<br />
www.pizzeriauno.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 460,270 448,641 439,747<br />
Company-owned ($000) 276,221 271,236 268,684<br />
Franchised ($000) 184,049 177,405 171,063<br />
U.S. Number of Units 209 210 206<br />
Company-owned 124 122 125<br />
Franchised 85 88 81<br />
International Sales ($000) 6,763 4,794 4,700<br />
International Units 4 3 2<br />
Average Sales/Unit ($000) 2,229 2,140 2,180<br />
Concept Positioning |<br />
Uno Chicago Grill, formerly known as Pizzeria Uno Chicago Bar & Grill, is a chain of full-service casual-dining restaurants. The<br />
family-friendly pizzeria offers steaks, pasta, chicken and seafood entrées along with signature deep-dish pizza. There are<br />
currently more than 200 Uno Chicago Grill restaurants in 29 states, the District of Columbia, Puerto Rico, South Korea and the<br />
United Arab Emirates.<br />
Units are located in both urban areas and suburban shopping centers and typically average 5,400-5,800 sq. ft., with seating for<br />
approximately 180-210. Dark woods and brick walls with vintage signs, photographs and sport memorabilia give units the<br />
flavor of a neighborhood pub. A newer prototype features polished concrete brickwork and open ceilings to create an<br />
ambiance of an old Chicago warehouse. To increase brand awareness, the chain is in the midst of a major marketing<br />
campaign that includes updating its menu by adding more upscale items such as an extended wine list.<br />
The original Pizzeria Uno was founded in 1943 by Ike Sewell in Chicago. International Food Service Co. began restaurant<br />
operations in 1966 and became Uno Restaurant Corp in 1979. It went public in June 1987. In mid-1992, Pizzeria Uno<br />
announced the purchase of the original Pizzeria Uno restaurant in Chicago and development rights to Illinois for $3 million<br />
from the estate of Uno's founder. Included in the deal were two other Chicago landmarks—Pizzeria Due, a sister operation of<br />
the original Uno's, and Su Casa, an upscale Mexican restaurant. In 2001, the company completed its merger with Uno<br />
Restaurant Corp. and went private. Uno Restaurants has completed a multi-year effort to reposition its mostly urban Pizzeria<br />
Uno brand as the largely suburban Uno Chicago Grill. Uno Chicago plans to launch 20–30 new units annually through 2008.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
669
<strong>Menu</strong> Positioning |<br />
Uno Chicago Grill offers an assortment of appetizers, soups, salads, pizza, chicken, steak and ribs, seafood, pasta,<br />
sandwiches and desserts for lunch and dinner. Signature items include Chicago-style deep-dish pizza with fresh meats,<br />
spices, vegetables and cheeses, as well as thin-crust pizzas. Choices also include fajitas, fish & chips and chicken & broccoli<br />
fettuccine. Newest menu addition is the Bacon Cheeseburger Deep Dish Pizza with ground beef, mozzarella and Cheddar<br />
cheeses, tomatoes, caramelized onions, bacon, dill pickles, ketchup and mustard. Alcoholic beverages include beer, wine and<br />
specialty drinks, such as the Sauza Gold Margarita and Absolut Appletini. A kids' menu features chicken and fries, pizza and<br />
macaroni & cheese. In October 2006, Uno Chicago replaced fried items and salad dressings with trans-fat-free alternatives.<br />
<strong>Menu</strong> prices range from 99¢-$17.99 and checks average $16.92.<br />
Promotion Plans |<br />
Uno Chicago Grill is celebrating Halloween and National Pizza Month with free pizza and a chance to win free pizza for a year.<br />
Participants must log onto the chain’s special website and update their profile to qualify. (Company Website 10/16/07)<br />
<strong>Menu</strong> Development |<br />
Uno Chicago Grill rolled out several new menu items. Options include: • Grilled Mahi-Mahi with Mango Salsa—mahi-mahi<br />
topped with tropical mango salsa and paired with brown rice and tempura asparagus • Pillows of Pasta (Tortellacci)—jumbo<br />
tortelloni fi lled with beef, veal and pancetta, topped with a blend of Alfredo and Bolognese sauces with beef, carrots,<br />
prosciutto, sausage, tomatoes and Chianti wine • Fettuccine Bolognese—Bolognese sauce over fettuccine • Chicken & Penne<br />
with White Wine—seasoned plum tomatoes sautéed with chicken in Chablis wine garlic sauce tossed with broccoli and penne.<br />
(Company Website)<br />
International Activities |<br />
Uno Chicago Grill is re-entering the Cincinnati market. The chain previously had three restaurants in the market. A local Taco<br />
Bell franchisee purchased one unit in West Chester and is planning to develop three to five locations in the next two to three<br />
years. The first of these restaurants is slated to open in early 2007. (Cincinnati Business Courier 11/17/06)<br />
Personnel |<br />
Bob Vincent, CFO<br />
Allan Fox, V.P. of Purchasing<br />
Bill Goldan, V.P. of Operations<br />
Frank Guidara, President<br />
Rich Hendrie, V.P. of Marketing<br />
Chris Gatto, V.P. Research & Development<br />
News & Other |<br />
Uno Due Go is a new quick-service spinoff of Uno Chicago Grill, the national casual-dining chain. Boston-based Uno<br />
Restaurant Holdings Corp. has developed Uno Due Go as an alternative for busy commuters, travelers and other customers<br />
on the go. Due locations will have offerings similar to those found at Uno Chicago Grill, but at lower prices with more grab-andgo<br />
options. Its menu will center on deep-dish and flatbread pizzas, sandwiches and self-serve soups. The company is eyeing<br />
urban sites, college campuses and airports for expansion. In addition, existing Uno Chicago Grill units may be outfitted with<br />
separate Uno Due Go sections for takeout service. The first two Uno Due Go units are scheduled to debut next spring inside<br />
Dallas/Fort Worth International Airport. Uno Restaurant Holdings will also sell franchises of the new concept.<br />
(BostonHerald.com 10/5/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
670
Villa Fresh Italian Kitchen<br />
Headquarters<br />
25 Washington Street, Morristown, New Jersey 07960 USA<br />
Tel: (973)285-4800 Fax: (973)285-5252<br />
www.villapizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 130,000 128,500 106,000<br />
Company-owned ($000) 65,000 64,500 61,000<br />
Franchised ($000) 65,000 64,000 45,000<br />
U.S. Number of Units 288 283 276<br />
Company-owned 140 140 141<br />
Franchised 148 143 135<br />
International Sales ($000) 8,000 7,500 6,000<br />
International Units 25 23 15<br />
Average Sales/Unit ($000) 450 460 460<br />
Concept Positioning |<br />
Villa Fresh Italian Kitchen is a quick-service restaurant chain specializing in pizza, sandwiches, salads and other Italianinspired<br />
favorites. Originally called Villa Pizza, limited-service Villa Fresh is revitalizing its brand with a new name that<br />
promotes its “Made Fresh Daily” approach. Villa Enterprises Management Ltd. owns and operates Villa Fresh. Its affiliates also<br />
own and operate Casa Java, an upscale coffee concept, as well as Everything Yogurt Brands and its concepts—Everything<br />
Yogurt, Green Leaf’s, Bananas and South Philly Steaks & Fries. Villa Enterprises operates more than 200 restaurant locations<br />
nationwide, as well as in Italy, the U.K., Peru, Netherlands Antilles and Kuwait.<br />
Restaurants average approximately 1,200 sq. ft. and operate primarily in shopping malls. However, current expansion<br />
strategies for Villa Fresh include more nontraditional units in airports, universities, hospitals, business and industry complexes,<br />
and sporting venues. The company developed the Villa Pizza Cucina concept specifically for the nontraditional market.<br />
Villa Fresh Italian Kitchen began as Villa Pizza in 1964. The small pizzeria was located adjacent to the Ed Sullivan Theater on<br />
Broadway in New York City. Today, it claims it is the largest privately owned pizza and Italian specialty chain in the U.S. Its<br />
traditional Italian menu includes 80 of founder Michele Scotto’s Old World Italian recipes. Villa Enterprises Management Ltd.<br />
debuted its Villa Fresh Italian Kitchen prototype in 2005. This model will primarily be fitted to operate in shopping mall food<br />
courts and will be the company's main growth vehicle going forward.<br />
<strong>Menu</strong> Positioning |<br />
The Italian-inspired menu at Villa Fresh Italian Kitchen features pizza, pasta, appetizers, salads, soups, entrées, calzones, hot<br />
sandwiches, desserts and beverages for lunch and dinner. Signature items include the Neapolitan, Sicilian and stuffed pizza<br />
varieties with a choice of two ingredients. Other favorites include the popular Meatball Sandwich, and pastas such as<br />
Vegetable Lasagna, Penne with Broccoli, Baked Ziti, Spaghetti with Meatballs, Linguine with Clams, Sausage Roll, Stromboli<br />
and Chicken Marsala. The appetizer selection is highlighted by fried mozzarella, chicken wings and fried mushrooms.<br />
Desserts include traditional offerings like tiramisu, cheesecake and cannoli. Featured combo meal offers individual stuffed<br />
pizza, side salad and medium drink for $5.79. There is no separate menu section for kids and no alcohol is served. <strong>Menu</strong><br />
prices range between $2.29 and $12.99. Checks average $7.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
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published.<br />
671
International Activities |<br />
Villa Fresh Italian Kitchen opened a new location in Veracruz, Mexico, on March 12. The new restaurant marks the company’s<br />
first in Mexico. (Company Website 4/3/07)<br />
Personnel |<br />
David Rosen, Executive Chef<br />
Ken Kuehn, S.V.P. of Operations<br />
Biagio (Ben) Scotto, CEO<br />
Albert Caamic, CFO<br />
John Drinhard, V.P. of Marketing<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
672
Village Inn<br />
Headquarters<br />
400 W. 48 Ave., Denver, Colorado 80216 USA<br />
Tel: (303)296-2121 Fax: (303)672-2677<br />
www.villageinnrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 350,000 342,854 321,323<br />
Company-owned ($000) 212,500 195,312 177,607<br />
Franchised ($000) 137,500 147,542 143,716<br />
U.S. Number of Units 255 235 225<br />
Company-owned 160 135 121<br />
Franchised 95 100 104<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,440 1,459 1,428<br />
Concept Positioning |<br />
Village Inn Pancake House Restaurants and Village Inn Family Restaurants, operated and franchised by VICORP, are<br />
midscale full-service, family-oriented restaurants. Both are open 18–20 hours a day, beginning at 6:00 a.m.<br />
Units are freestanding, averaging 5,000 sq. ft., with seating for 165 patrons at tables and booths. Display areas for bakery<br />
goods have been added to many units. The company is currently updating existing units via more contemporary interiors with<br />
lighter colors and brass fixtures. Exteriors include tiered awnings, a blue-green roof and increased signage.<br />
The first Village Inn opened in Denver in 1958. The company was incorporated in 1959, and the first franchised restaurant<br />
opened the next year. A number of acquisitions were made in the mid-1980's. Parent Vicorp was incorporated in 1959. It was<br />
reorganized by a group of shareholders in 1977 and made its first public offering of stock in 1982. In mid-2001, Vicorp<br />
completed its merger with affiliates of Goldner Hawn Johnson and Morrison Inc. and BancBoston Capital, thereby taking the<br />
company private. Vicorp also franchises the Bakers Square concept. Today Village Inn restaurants are concentrated in the<br />
Rocky Mountain region and throughout the Midwest, as well as in Arizona, Florida and Texas. New units have also recently<br />
opened in Utah and Iowa. Nine new Village Inn restaurants have opened during 2007.<br />
<strong>Menu</strong> Positioning |<br />
Village Inn's menu serves all-day breakfasts featuring made-from-scratch buttermilk pancakes, waffle, eggs, omelets and<br />
breakfast meats. New to the menu is the Royal Mountie—a 1/3-lb. beef patty topped with egg, cheese and Canadian-style<br />
bacon on an English muffin; and the Big on Bacon breakfasts, which center on bacon and egg dishes. The chain also menus<br />
lunch and dinner selections, featuring items such as sandwiches, melts, burgers, steaks, pork chops and seafood.. Popular<br />
breakfast items include the Ham & Cheese Scramble, Eggs Benedict and Breakfast Burrito. Popular lunch and dinner options<br />
include the Chicken Caesar Salad, Cobb Salad, Chili Cheeseburger, Tuna Melt, Portabella Chicken Sandwich, Salisbury<br />
Steak, Smothered Grilled Chicken, Roasted Turkey and Fried Cod. Sides include french fries, onion rings and a bowl of fresh<br />
fruit. Award-winning desserts include Country Apple Pie, Coconut Cream Pie, Caramel Pecan Silk Supreme and Brownie Pie<br />
A La Mode, in addition to seasonal pie promotions. No alcohol is served. Fountain drinks and shakes are available in<br />
chocolate, strawberry and mocha flavors. Senior citizens (60 years or older) receive 10% off menu items. Sides and entrées<br />
range from $1.59–$10.99, and checks average $6–$7.50.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
673
Expansion Plans |<br />
Village Inn is opening a new restaurant in San Antonio, TX. The unit will be located on Interstate Highway 10. (Company<br />
Website 1/2/07)<br />
<strong>Menu</strong> Development |<br />
Village Inn has rolled out a line of Parmanini sandwiches. The sandwiches are served on Parmesan-crusted sourdough bread<br />
and include Southwestern Chicken Parmanini, with grilled chicken breast, Cheddar, Monterey Jack and Pepper Jack cheese,<br />
sweet red peppers and tangy Mexicali dressing; Grown-Up Grilled Cheese, featuring layers of American, mozzarella, Monterey<br />
Jack and Cheddar cheeses melted with hickory bacon and tomatoes; Tuscan Chicken Parmanini, slices of tender grilled<br />
chicken breast with melted mozzarella and marinara sauce; Smoked Ham & Swiss Parmanini, featuring smoked ham and<br />
Swiss cheese with honey-mustard dressing; and Turkey Cuban Parmanini, with smoked ham, slow-roasted hand-carved<br />
turkey breast, Swiss cheese, pickles and mustard. (Company Website)<br />
Village Inn introduced a line of Big City Skillets. Choices include: •San Diego Skillet—six mini chicken tacos over two<br />
scrambled eggs, with avocado slices, tomatoes, queso sauce and melted Monterey Jack and Cheddar cheese on top of<br />
country brown potatoes •Nashville Skillet—two scrambled eggs and diced country sausage finished with creamy country<br />
sausage gravy and crumbled bacon on top of country brown potatoes •San Antonio Skillet—two scrambled eggs, spicy<br />
shredded beef, onions, green chili, green peppers, crispy tortilla strips and sour cream over country brown potatoes. •Chicago<br />
Skillet—two scrambled eggs, large slices of kielbasa sausage with grilled green peppers and onion, on top of country brown<br />
potatoes and finished with a cheese sauce •Big Easy Skillet—country brown potatoes topped with two scrambled eggs,<br />
tomatoes, Creole-style grilled chicken, queso sauce, onions and sautéed green peppers. (Company Website)<br />
Village Inn has added White Chocolate Cherry Dream, dark chocolate cookie crust layered with white chocolate silk and<br />
sweet-n-tart red cherries and finished with whipped cream and chocolate curls. (Company Website)<br />
Village Inn debuted new French Toast Combos, including Fresh Strawberry & Banana French Toast Combo, French bread<br />
grilled and topped with bananas, strawberries, strawberry sauce, powdered sugar and whipped cream, paired with an egg and<br />
two strips of bacon or sausage links; Cinnamon Apple Crumb French Toast Combo, French bread grilled and sweetened with<br />
cinnamon pecan crumbles and apple compote, finished with powdered sugar and whipped cream, served with an egg and<br />
sausage links or two bacon strips; and Mocha Caramel French Toast Combo, French bread grilled and drizzled with chocolate<br />
and mocha-caramel sauce, finished with whipped cream, served with an egg and two bacon strips or sausage links. (Company<br />
Website)<br />
Village Inn rolled out Sizzling Southwest Favorites. The offerings include: • Breakfast Fajita Skillet—country potatoes topped<br />
with grilled chicken, sautéed mushrooms, onions, green peppers, scrambled eggs, melted cheese, tomatoes and parsley,<br />
paired with flour tortillas and spicy salsa • Breakfast Fiesta-Dilla—soft flour tortilla stuffed with scrambled eggs, bacon, melted<br />
Cheddar, Jack and pepper Jack cheeses, finished with tomatoes and served with lettuce, salsa, sour cream and a side of hash<br />
browns • Baja Benedict—spicy shredded beef, pepper Jack cheese, scrambled eggs and hollandaise sauce finished with<br />
avocado and diced tomatoes on a toasted English muffin, served with a side of hash browns • Smothered Fajita Burger—fajitaseasoned<br />
burger with grilled onions and green and red peppers, finished with melted pepper Jack cheese and served on a<br />
grilled hoagie roll with a side of Mexicali dressing and french fries • Fiesta Chicken Salad—grilled chicken strips, Cheddar<br />
cheese, fried flour tortilla strips, black olives, tomatoes, red onions and avocado served on crisp lettuce with Mexicali dressing.<br />
(Company Website)<br />
Village Inn will offer Country Apple, Cherry and Strawberry Rhubarb whole pies for $5.99 for a limited time. (Company<br />
Website)<br />
Village Inn introduced a Big on Bacon breakfast menu. Selections include: • Canadian-Style Bacon-Stuffed Omelet—a threeegg<br />
omelet stuffed with Canadian-style bacon hash, diced tomatoes and melted Jack and Cheddar cheeses covered in<br />
hollandaise sauce, melted Swiss cheese and diced Canadian-style bacon • Bacon Breakfast Melt—two scrambled eggs<br />
combined with diced bacon and onions, topped with melted pepper Jack cheese and more bacon on grilled sourdough bread •<br />
Scrambled Benedict Lorraine—a toasted English muffin served open-faced and topped with slices of Canadian-style bacon,<br />
diced hickory bacon, onions, scrambled eggs, hollandaise sauce and melted Swiss cheese • Supreme Crêpes—filled with<br />
scrambled eggs, country sausage, hamburger, bacon, onions, spinach and cheese and topped with hollandaise sauce, diced<br />
tomatoes and bacon • Quiche Lorraine—egg custard with bacon, Swiss cheese and diced onion, baked in a flaky pastry crust<br />
and topped with Parmesan cheese. (Company Website)<br />
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published.<br />
674
Bakers Square and Village Inn are launching a “Legendary Restaurants. Legendary Recipes” menu-marketing program, which<br />
adapts recipes from small independent restaurants around the country as specials on its menu. Lunch and dinner menus<br />
currently include a sirloin baguette sandwich with a steak-seasoning blend created by Perini Ranch Steakhouse in Buffalo<br />
Gap, TX. The November menu at both restaurant chains features three stuffed French toast dishes from recipes developed at<br />
The Maples Inn in Bar Harbor, ME. Vicorp Restaurants, parent of Bakers Square and Village Inn, researched consumer dining<br />
magazines, local cook-offs and competitions to find established, local-favorite restaurants. (Restaurants & Institutions Online<br />
11/6/07)<br />
Personnel |<br />
Karen Flye, Director of Marketing<br />
Jeff Guido, Director of Operations<br />
Mark Hampton, Director of Purchasing<br />
Bob Derian, Director of Research & Development<br />
Tony Carroll, CFO<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
675
Waffle House<br />
Headquarters<br />
5986 Financial Drive, Norcross, Georgia 30071 USA<br />
Tel: (770)729-5700 Fax: (770)729-5999<br />
www.wafflehouse.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 820,000 810,000 795,000<br />
Company-owned ($000) 410,000 400,000 375,000<br />
Franchised ($000) 410,000 410,000 420,000<br />
U.S. Number of Units 1,475 1,481 1,475<br />
Company-owned 740 745 703<br />
Franchised 735 736 772<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 560 560 550<br />
Concept Positioning |<br />
Waffle House is a full-service short-order restaurant specializing in waffles. Restaurants are open 24 hours a day, 365 days a<br />
year, offering full-service dining at fast-food speed. The privately held chain operates 1,475 units across the Southwestern,<br />
Southeastern and Midwestern United States, 735 of which are franchised.<br />
Units are small, seating 35–50 customers at booths and counters. Most are freestanding and located in high-traffic areas and<br />
off interstate highway exits. While the chain's menu focus is broad-based, the principal customer base is largely blue-collar<br />
males. Each store features a jukebox which plays a variety of songs. Décor, which has changed little since the concept's<br />
inception in the 1950s, includes yellow-and-black exterior signage and interiors featuring stainless steel, checkered tile floors<br />
and globe lights over the counters.<br />
Tom Forkner and Joe Rogers Sr. opened Waffle House in Avondale Estates, GA, in 1955. Though the chain plans continued<br />
growth, it currently has no major expansion plans.<br />
<strong>Menu</strong> Positioning |<br />
Waffle House is open 24 hours a day, offering breakfast, lunch and dinner items including eggs, omelets, waffles, breakfast<br />
sandwiches, chili, soup, salads, melts, burgers, chicken, dinner plates and steak. Signature breakfast items include the<br />
Cheesesteak Omelet, Double Strawberry Waffle, and Bacon, Egg & Cheese Sandwich. Signature lunch and dinner options<br />
include Bert's Chili, Walt's Soup, B.L.T. Salad, Texas Cheesesteak Melt, Bacon Chicken Cheese sandwich and Papa Joe's<br />
Pork Chops dinner. Also available is a Junior/Senior menu for children under 10 and adults over 60, featuring waffles, bacon,<br />
cereal, cheeseburgers, BLTs, soup, chili, pie and grits. Drinks include soda, juice, iced tea and coffee. <strong>Menu</strong> prices range from<br />
$2.70–$10.10. Checks average $8.<br />
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published.<br />
676
Promotion Plans |<br />
Waffle House Restaurants has chosen Vocus, Inc. to boost its media relations. Vocus, Inc. is a provider of on-demand<br />
software for corporate communications and public relations. (Prnewswire.com 1/8/07)<br />
Personnel |<br />
Joe, Jr Rogers, CEO<br />
Walt Ehmer, CFO<br />
Pat Warner, V.P. of Marketing<br />
Bert Thornton, E.V.P. of Operations<br />
News & Other |<br />
Waffle House is turning its original restaurant in DeKalb County, GA, into a museum. The 1,500-unit breakfast chain is<br />
restoring the restaurant, which opened in 1955, and will reopen the renovated site in the fall. The museum will display vintage<br />
ceramic plates, coffee mugs, laminated menus and Waffle House’s original uniforms. (The News & Observer Online 7/13/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
677
Wendy's Old Fashioned Hamburgers<br />
Headquarters<br />
1 Dave Thomas Blvd, Dublin, Ohio 43017 USA<br />
Tel: (614)764-3100 Fax: (614)764-3330<br />
www.wendys.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 7,804,000 7,680,320 7,715,000<br />
Company-owned ($000) 1,863,400 1,820,000 1,870,000<br />
Franchised ($000) 5,940,600 5,860,320 5,845,000<br />
U.S. Number of Units 5,955 6,018 5,935<br />
Company-owned 1,317 1,345 1,328<br />
Franchised 4,638 4,673 4,607<br />
International Sales ($000) 790,000 790,000 800,000<br />
International Units 718 728 736<br />
Average Sales/Unit ($000) 1,303 1,286 1,319<br />
Concept Positioning |<br />
Wendy’s Old Fashioned Hamburger is a limited-service hamburger chain specializing in fresh, never frozen hamburgers. The<br />
chain is owned by Wendy’s International Inc. and operates 6,673 locations worldwide, 4,638 of which are franchised.<br />
Restaurants are generally freestanding brick buildings featuring a copper-colored mansard roof, awnings and new signage<br />
with red letters on a white background. Units average 2,400 sq. ft. with seating for 92. Interiors are decorated with wallpaper,<br />
carpeting and stained glass. Most units have solarium extensions, typically 10 ft. by 30 ft., that seat an additional 28. New units<br />
average 2,910 sq. ft. with seating for 94. They have double pick-up windows for drive-thru service. For locations that cannot<br />
support a full-sized restaurant, Wendy’s also has a smaller prototype that seats 74 patrons in a 1,600-sq.-ft. space. Compact<br />
units also have been developed for walkup-only and drive-thru-only business. Wendy's also operates in nontraditional<br />
locations such as travel centers, gas stations, convenience stores, military bases, sports arenas, malls, hospitals, airports and<br />
college campuses.<br />
Wendy’s was opened in 1969 in Columbus, OH, by Dave Thomas. The company instituted a franchise program in 1972 and<br />
made its first public stock offering in 1975. The company acquired Tim Hortons, Canada’s second largest limited-service<br />
restaurant chain, in 1995, and spun it off in 2006. It acquired limited-service chain Baja Fresh Mexican Grill for $275 million in<br />
2002 and sold it for $31 million in 2006. Wendy’s currently has a 29% stake in the Pasta Pomodoro chain. The company's<br />
long-term plan calls for its flagship brand Wendy’s to have an eventual total of 8,500 to 9,500 units in operation.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
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678
<strong>Menu</strong> Positioning |<br />
Wendy's is open for lunch and dinner, featuring a variety of specialty burgers, chili, fish and chicken sandwiches and chicken<br />
strips, and Fresh Stuffed Pitas—flatbread stuffed with chicken, cheeses, vegetables, salad greens and reduced-fat dressings.<br />
Signature items include Classic Single Hamburger or Cheeseburger, Big Bacon Classic burger, Spicy Chicken Fillet, Taco<br />
Supremo Salad, Chili, Sour Cream & Chive Baked Potato, and Fresh Fruit Cup or Bowl. Sides include baked potatoes, french<br />
fries and prepackaged salads. A Super Value <strong>Menu</strong> includes a Junior Bacon Cheeseburger, Crispy Chicken Nuggets, Frosty<br />
desserts and a new Junior BBQ Cheeseburger. A kids’ combo offers a hamburger, cheeseburger, or four chicken nuggets with<br />
side choices like small french fries or a cup of Mandarin oranges. The kids' menu also includes deli sandwiches and a yogurt<br />
and granola cup. Healthy options include add-ons such as Baked Lay's Chips and yogurt and granola cups. For dessert, the<br />
Frosty—a chocolate- or vanilla-flavored soft-serve dairy item¬--is available, either alone; with “Fix ’n Mix” mix-ins; or as a float.<br />
<strong>Menu</strong> prices range from 99¢–$6.29. Checks average $5.83.<br />
Promotion Plans |<br />
Wendy’s teamed with the golf channel for its 3-Tour Challenge through 2012. The 3-Tour Challenge is a professional golf<br />
tournament in which three players from the PGA, LPGA and Champions tours play against each other to raise money for the<br />
Dave Thomas Foundation for Adoption. (Company Release 12/11/06)<br />
Wendy’s has teamed with fitness club Curves. Diners can bring a Wendy’s cash register receipt showing the purchase on an<br />
entrée salad to any Curves location and get a free two-week trial membership. User will also receive a coupon for $1 off the<br />
purchase of a Wendy’s entrée salad and drink. The offers begin on January 22. (Company Release 1/5/07)<br />
Wendy’s will debut a new advertising campaign in early summer that will focus on the chain’s fresh beef. There has been<br />
speculation that the ads will use a voice-over character representing Wendy, the daughter of Dave Thomas, the chain’s late<br />
founder. The company did not comment on the campaign other than to say that it would be very contemporary. (Advertising<br />
Age 4/30/07 p3)<br />
Wendy’s is launching a taste tour of 25 major cities in North America for six months that began the first week of June. Wendy’s<br />
will make its first stops in Greensboro and Charlotte, NC. At each stop, people will have the chance to sample free<br />
hamburgers. In addition to the tour, Wendy’s is inviting customers to create the next great burger that could appear on<br />
Wendy’s menu. The “Build Wendy’s New Burger” contest will run through August 15. Customers can participate at<br />
www.ThisIsMyBurger.com. (Company Release 6/6/07)<br />
Wendy’s International is airing a new ad campaign built on the slogan “That’s Right.” The ad debuted during the finals of<br />
“American Idol.” The 60-second ad emphasizes the chain’s made-to-order food and fresh beef. (Ohio.com 5/24/07)<br />
Wendy’s International Inc. has launched a national “Build Wendy’s New Burger” online contest for consumers to create the<br />
chain’s next burger. The website, www.ThisIsMyBurger.com, allows customers to post recipes selecting from 54 ingredients<br />
and 13 kinds of cheese. The quick-service chain is also embarking on a national tour starting in Charlotte and Greensboro,<br />
NC, to let consumers sample free hamburgers and enter the contest via computer kiosks. The winner of the contest will<br />
receive $25,000, and nine runners-up will receive free Wendy’s burgers for a year. (Nation’s Restaurant News 6/18/07 p60)<br />
Wendy’s television ads featuring a man in a red wig screaming about juicy hamburgers to a crowd of people kicking trees in a<br />
forest has become a success. The chain got the attention of its target crowd, young consumers. The commercial has been<br />
viewed 800,000 times of YouTube.com and has spawned amateur copycat videos. (Reuters.com 7/20/07)<br />
Wendy’s ad showing office workers inhaling helium for lunch was condemned by the National Inhalant Prevention Council,<br />
which said the ad sends the wrong message to children about inhalants. The National Inhalant Prevention Council tries to<br />
discourage individuals from using inhalants. Wendy’s said it has no plans to pull the spot, created by New York-based Saatchi<br />
& Saatchi. (NRN Daily NewsFax 9/24/07)<br />
Wendy’s is giving away 100 million free music downloads through December 30. To be eligible, participants must purchase<br />
either a combo meal or an à la carte drink. A promotional code printed on the cup can then be redeemed for one free music<br />
download online through Rhapsody. (Adweek.com 11/12/07, Company Website 11/12/07)<br />
Wendy’s announced the Philly Style Hoagie Burger as the winning entry for the chain’s Build Wendy’s New Burger online<br />
promotion. Ian Van Camp came up with the winning burger, which features two fresh beef patties, sliced ham, Genoa salami,<br />
American cheese, onion rings, shredded lettuce, sliced tomato and Italian dressing, all on a premium bun. Van Camp’s<br />
creation received the most votes at ThisIsMyBurger.com among the top 10 finalists chosen by Wendy’s. The winning burger<br />
was announced November 15 as part of the company’s 38th anniversary. In addition to potentially having his burger added to<br />
the Wendy’s menu, Van Camp will receive $25,000. All nine runners-up will receive free hamburgers for a year. (Yahoo!<br />
Finance 11/15/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
679
Wendy’s has announced the winners of its My Wendy’s High School Heisman Moment contest. Briggs Orsbon of Convoy, OH,<br />
and Lauren Phipps of St. Louis will each receive a grand prize of an all-expenses-paid trip to New York City to attend Wendy’s<br />
High School Heisman Weekend, plus a $250 gift card. The two winners were selected from a pool of entrants who submitted<br />
videos to Wendysheisman.com and tackle.com. The videos showcased the students’ favorite or best high school sports<br />
moments. The entrants were subjected to a public vote, with the top 15 vote-getters then judged by a Wendy’s panel. The 13<br />
other finalists will each receive a $100 Wendy’s gift card. (Yahoo! Finance 11/15/07)<br />
<strong>Menu</strong> Development |<br />
Wendy’s fat content is being called into question after recent tests found that large servings of Wendy’s fries allegedly<br />
contained about 2.5 grams of trans-fat, according to Consumer Reports. The company recently announced that it was<br />
planning to reduce the trans fat content in a large order of fries to 0.5 grams from 7 grams. Wendy’s said that it plans to test<br />
the items that were found to have contained the higher amount of trans fats. (Wall Street Journal 11/03/06; NRN Daily<br />
NewsFax 11/03/06)<br />
Wendy’s introduced its Cranberry Pecan Salad. The salad features fresh lettuce, Mandarin oranges, dried cranberries, allwhite<br />
meat chicken, pecans and berry balsamic vinaigrette. (Company Release 1/5/07)<br />
Wendy’s International Inc. will roll out a breakfast menu to 20% to 30% of its domestic units this year. The chain has been<br />
testing the breakfast menu in select regional markets. The company also announced plans to launch 10 new products this<br />
year and sell at least 50 company-owned restaurants. Wendy’s expects to invest up to $110 million in restaurant renovations<br />
this year. (NRN Daily NewsFax 2/06/07; The Wall Street Journal 2/05/07; Columbus Business First 2/09/07)<br />
Wendy’s introduced the Chunky Chicken Salad Frescata to its Frescata sandwich line. It includes all white chicken meat with<br />
celery, onions and green peppers in a Dijon sauce, served on artisan bread with tomato and romaine lettuce. The sandwich is<br />
priced at $3.49, or $4.99 as part of a combo meal. (Company Release 3/27/07; NRN Daily NewsFax 3/28/07)<br />
Wendy’s added a 4-Alarm Spicy Chicken sandwich, a variation of its Spicy Chicken sandwich. The sandwich consists of a<br />
deep-fried chicken breast topped with pepper Jack cheese, chipotle sauce, jalapeño pepper slices, lettuce and tomato served<br />
on the bread that is used for Wendy’s Frescata deli line. It is priced at $3.99, or $5.69 as part of a combo meal. (NRN Daily<br />
NewsFax 3/09/07)<br />
Wendy’s added the Vanilla Frosty Float to its Frosty lineup. The drink allows customers to choose from Coca-Cola, Barq’s root<br />
beer or another soft drink and combine it with the Frosty mix. A 20-oz version is priced at $1.99. The chain also added Custom<br />
Bean by Folgers Gourmet Selections to its breakfast menu. Wendy’s plans to roll out its breakfast menu to 20%–30% of its<br />
North American outlets by year’s end. (Company Promo 5/18/07 & 5/21/07)<br />
Wendy’s Buffalo Crispy Chicken Sandwich is being introduced this week on the Super Value menu. The sandwich is made<br />
with all-white meat chicken and will be available for a limited time through June. The sandwich is priced at 99¢. (Company<br />
Release 5/9/07)<br />
Wendy’s will offer an exclusive a blend of coffee, Wendy’s Custom Bean by Folgers Gourmet Selections. The coffee will be<br />
included in a new breakfast menu and will be available throughout the day at Wendy’s locations that serve breakfast. The<br />
chain will brew the coffee using Procter & Gamble’s custom brewing technology. (Bizjournals.com 5/18/07)<br />
Wendy’s introduced its new Vanilla Frosty Float. The Frosty float combines the traditional Frosty with a choice of soda. The<br />
item is being promoted with a Nintendo Wii video game system giveaway. Each Vanilla Frosty Float cup comes with a special<br />
code that gives customers a chance to instantly win one of 800 Wii systems, 800 Wii games or 800 Wii Points cards that can<br />
be redeemed to download classic Nintendo games from the Wii Shop Channel. The promotion will continue until June 30.<br />
(Company Release 5/21/07)<br />
Wendy’s has expanded its test of new breakfast items by another 75 stores. There are currently 235 restaurants participating<br />
in the test of new breakfast sandwiches, burritos, cinnamon rolls and regional specialties. Wendy’s will continue to add test<br />
stores this summer, totaling 650 test stores by the end of August and 30% of its North American system by the end of the<br />
calendar year. New breakfast items are accompanied by a new premium coffee blend, Wendy’s Custom Bean by Folgers<br />
Gourmet Selections. (NRN.com 6/27/07)<br />
Applebee’s Neighborhood Bar & Grill and Wendy’s Old Fashioned Hamburgers launched contests that asked customers to<br />
create a new burger that would be available on their menus for a limited time. Other restaurants such as Red Robin and Dairy<br />
Queen are using this contest technique, indicating that this could be the beginning of a marketing trend. (Nation’s Restaurant<br />
News 7/3/07 p1)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
680
Wendy’s introduced the Baconator, with ½-lb. beef patty, hickory-smoked bacon, American cheese, ketchup and mayonnaise.<br />
(Company Release 7/16/07)<br />
Wendy’s International Inc. plans to offer its new breakfast menu in more than 650 stores by the end of August. The company<br />
has been testing the breakfast menu in approximately 160 restaurants in five markets. New breakfast items include a steak<br />
and egg breakfast sandwich, a breakfast burrito with hot sauce, French toast sticks with syrup and the Buttermilk Frescuit<br />
sandwich. Premium coffee will also be added to the menu and will be offered all day. Wendy’s hopes the new menu will help it<br />
to compete with McDonald’s and Burger King’s breakfast sales. (Washington Post Online 6/22/07; NRN Daily NewsFax<br />
6/25/07)<br />
Wendy’s continues to expand its breakfast menu to more restaurants nationwide. The menu features a variety of different<br />
items including Buttermilk Frescata, a biscuit with egg, cheese and choice of breakfast meat (sausage, hickory-smoked bacon<br />
or ham); Steak and Egg Breakfast Sandwich, featuring egg, cheese, slices of seasoned steak and bacon on a warm kaiser<br />
roll; Big Breakfast Sandwich, with egg, cheese, hickory-smoked bacon and seasoned sausage on a warm kaiser roll; Grande<br />
Breakfast Burrito, a warm flour tortilla filled with scrambled eggs, seasoned sausage, roasted breakfast potatoes, Cheddar and<br />
American cheeses served with Wendy’s hot sauce; and crispy French Toast Sticks paired with syrup for dipping. Other items<br />
include value-menu offerings such as Sausage Biscuits, a Sausage and Egg Burrito and Cinnamon Rolls as well as regional<br />
favorites including a Chicken Biscuit and Sausage Gravy and Biscuits. The breakfast items will be available a la carte or in<br />
combo meals. Beverage options will include Folgers Gourmet Selections coffee. (Company Release 6/22/07; Chicago Sun-<br />
Times 6/23/07)<br />
Wendy’s is offering its Twisted Frosty. The item features Wendy’s classic Frosty with M&M or Oreo topping mixed in. Nearly<br />
4,500 of the chain’s locations are now serving the Twisted Frosty. (Company Release 8/15/07)<br />
Wendy’s has pledged to give preferential buying support to pork and chicken suppliers that use humane animal practices. This<br />
includes increasing pork purchases of hogs not raised in restrictive gestation stalls from 10% to 20% by the end of 2008.<br />
Suppliers will be monitored through Wendy’s ongoing animal welfare reviews. (QSRMagazine Online 7/12/07; NRN Daily<br />
NewsFax 7/13/07)<br />
Wendy’s added a new line of Fix ’n Mix Frostys to its menu. The dessert features the classic Wendy’s Frosty with a choice of<br />
M&M, Butterfinger or Oreo pieces as mix-in additions. (Yahoo! Finance 8/15/07)<br />
Franchise Activity |<br />
Wendy’s 15 restaurants in Southeast Wisconsin are being sold by franchisee Bridgeman Foods for $11.3 million to GE Capital<br />
Solutions Franchise Finance. Bridgeman will lease back the properties. (Bizjournals.com 2/23/07)<br />
Wendy’s International closed the chain’s first restaurant in Columbus, OH. The outlet, opened in 1969 by founder Dave<br />
Thomas, offered limited seating and no drive-thru and its business was dependent on state offices that are closed nights and<br />
weekends. In other news, the company plans to open 80–110 company-owned and franchised outlets in 2007, concentrating<br />
its development in North America. This is down from 2006, when it opened 122 stores. (NRN Daily NewsFax 2/26/07;<br />
Tennessean.com 2/26/07; Nation’s Restaurant Online 2/25/07; The Wall Street Journal 3/05/07)<br />
Wendy’s operators James P. May and Michael Quagliano closed their newly reopened unit in Mattoon, IL, last week after<br />
Wendy’s International Inc. claimed it hadn’t authorized the store. The operators of the unit agreed to close the store when the<br />
company sought a temporary restraining order against them. The Mattoon store was the first to reopen of a number of sites,<br />
including units in Champaign, Decatur, East Peoria and Springfield, that the operators had acquired from Wendy’s franchise<br />
Wendy’s America. Wendy’s had not authorized reopening of the store because of deficiencies that would require expensive<br />
remodeling and remediation. (News-gazette.com 6/20/07)<br />
International Activities |<br />
Wendy’s International Inc., paid $800 million to buy back 22.4 million shares of its stock through a “Dutch auction”. The stock<br />
represents approximately 19% of the company’s shares. (The Columbus Dispatch 11/18/06)<br />
Technology |<br />
Wendy’s have installed DVD kiosks the size of vending machines so customers can buy a meal and then pick up a movie for<br />
the night. The kiosks offer 800 movie titles for prices ranging from $10–$20. (Ohio.com 11/1/06)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
681
Personnel |<br />
Ian B. Rowden, S.V.P. of Marketing<br />
Kerrii B. Anderson, CEO<br />
David Near, COO<br />
Jay Fitzsimmons, E.V.P./ CFO<br />
News & Other |<br />
Wendy’s International Inc. has partnered with the American Dietetic Association to create Mom-RD, an online program which<br />
connects parents with registered dietitians and other food and nutrition experts for advice on family nutrition. The burger chain<br />
is promoting the website, which features weekly polls on families’ eating habits as well as an “Ask Mom-RD” section where<br />
parents can receive answers to questions put to the dietitians. In addition, Wendy’s has rolled out nutrition information posters<br />
in its stores and put messages on its bags and food cartons touting its recent reduction of trans fatty acids in its french fries<br />
and chicken items. (Nation’s Restaurant News Online 10/27/06)<br />
Wendy’s inked a deal with Applied Media Technologies Corp. to air Sirius Satellite Radio Inc. in select units. The company did<br />
not announce how many locations would feature the music. Sirius Satellite Radio offers the restaurants a choice of 67<br />
channels of commercial-free music. (Columbus Business First 11/03/06)<br />
DVD vending machines are being installed at select Wendy’s, Meijer and White Castle locations in Columbus, OH. The<br />
vending machines, similar in size to soft-drink vending machines, offer 800 movie titles, with prices ranging from $10-$20.<br />
McDonald’s tested the system in Denver in 2004 and currently has the machines in five units in other cities. (Akron Beacon<br />
Journal 11/01/06)<br />
Ohio State University in Columbus, OH, has inked a deal with McDonald’s which will replace Wendy’s as the university’s<br />
sports sponsor. Under the deal, the football and basketball arenas will feature the McDonald’s name and logo. The deal will<br />
also allow for cross-promotional opportunities such as selling tickets to the Buckeyes spring football game at central Ohio<br />
McDonald’s outlets. (AFX International Focus 3/14/07)<br />
Burger King—along with a number of national quick-service chains, including McDonald’s and Wendy’s—is refusing to comply<br />
with a New York City ordinance that requires certain fast-food restaurants to post calorie content information on menu boards.<br />
The new rule states that fast-food operators must list calorie values next to menu items in type that is as large as the price of<br />
the item. Burger King and its counterparts contend that the rule unfairly singles out quick-service restaurant companies that<br />
already voluntarily offer nutritional information. (Yahoo! News 6/26/07)<br />
Triarc Chief Executive Officer and Chairman Nelson Peltz claims Triarc is a “natural strategic buyer” for Wendy’s. Peltz is<br />
currently a major shareholder in Wendy’s and believes Triarc should be encouraged to participate in the process. (Associated<br />
Press 7/3/07)<br />
Wendy’s former operator Robert Burda has been accused of not paying wages to his employees. Burda pleaded not guilty on<br />
August 29 to the charges of nonpayment of wages and larceny by check. Burda operated 13 Wendy’s locations in western<br />
Massachusetts. He closed the restaurants abruptly last month, leaving his employees without paychecks. Wendy’s will not<br />
allow Burda to operate its franchises and has offered the affected employees financial assistance. (Boston.com 8/29/07)<br />
Wendy’s franchisee, Cedar Enterprises Inc., plans to make a bid for the chain with two private-equity firms. President of Cedar<br />
Enterprises, David Karam, has been invited by Wendy’s International Inc. to a second round of talks. Karam is backed by<br />
Kelso & Co. and Oak Hill Capital Partners. (Associated Press 9/26/07)<br />
Wendy’s franchisee Wendelta Inc. debuted a new prototype. The prototype features a branded coffee bar, flat-screen<br />
televisions, free WiFi access and tabletop flowers. Wendelta boasts Javaccino’s coffee bar, a separate area serving coffees,<br />
lattes, cappuccinos and “Frosty-ccinos”, the chain’s Frosty treat with coffee flavoring and chocolate or caramel. (NRN Daily<br />
NewsFax 10/19/07)<br />
Wendy’s franchisee Carlisle Corp. is considering acquiring the 6,700-unit hamburger chain. The 100-unit Wendy’s franchisee,<br />
which operates in Mississippi, North Carolina, Louisiana and Arkansas, is considering teaming with an unidentified equity firm<br />
to place a bid for the fast-food chain. (Nation’s Restaurant News Online 10/4/07)<br />
Wendy’s debuted a prototype of its sports-branded coffee bar. Wendelta Inc., a subsidiary of 90-unit Wendy’s franchisee<br />
Carlisle Corp., opened the Starkville, MS, unit. The prototype features the first-ever Javaccino’s coffee bar along with flatscreen<br />
TVs, free Wi-Fi access and flowers on the tables. Javaccino’s offers coffees, cappuccinos, lattes and “Frosty-cinos” as<br />
well as pastry snacks. The prototype may be duplicated. Wendy’s recently announced its goal of becoming a competitor in the<br />
beverage industry. (Nation’s Restaurant News Online 10/18/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
682
WesterN SizzliN<br />
Headquarters<br />
1338 Plantation Rd, Roanoke, Virginia 24012 USA<br />
Tel: (540)345-3195 Fax: (540)345-0831<br />
www.westernsizzlin.com<br />
Ownership: Public<br />
Segment: Limited Service Steak<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 210,902 221,011 245,206<br />
Company-owned ($000) 13,265 13,327 16,708<br />
Franchised ($000) 197,637 207,684 228,498<br />
U.S. Number of Units 129 140 154<br />
Company-owned 6 5 7<br />
Franchised 123 135 147<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,634 1,579 1,534<br />
Concept Positioning |<br />
WesterN SizzliN Steak House is a limited-service, family-oriented chain that focuses on moderately-priced American fare.<br />
Austins Steaks and Saloon Inc. is the parent company of WesterN SizzliN. Service is semi-cafeteria style with waitress<br />
assistance. <strong>Menu</strong> items include flame-grilled steaks, chicken and seafood entrees, freshly baked breads and an extensive<br />
salad bar. WesterN SizzliN has over 125 locations mainly in the southern portion of the United States.<br />
Units are primarily freestanding buildings ranging between 7,500-8,500 sq. ft. with seating for 150-400 patrons. New and<br />
remodeled units feature a contemporary décor rather than the Western theme which original prototypes had. Dining rooms<br />
include a weekend breakfast buffet area. In addition, WesterN SizzliN Corp. will open a quick-casual steak spinoff concept.<br />
The company said the new concept will be smaller than its current restaurants and feature an abbreviated menu.<br />
WesterN SizzliN was founded by Nick Pascarella in 1962 in Augusta, Georgia. In 1966, Pascarella began franchising the.<br />
WesterN SizzliN also owns Great American Steak & Buffet and Quincy Steakhouse, two casual-dining steakhouse chains. In<br />
2006, WesterN SizzliN entered into a partnership with Star Buffet Inc., in which the company will convert a number of its<br />
existing restaurants into WesterN SizzliN units, test and develop a new prototype for its own chain, and seek acquisition of<br />
selected WesterN SizzliN franchised units. The company plans to expand locations across the continental U.S.<br />
<strong>Menu</strong> Positioning |<br />
WesterN SIzzliN offers lunch, dinner and a weekend breakfast buffet in its cafeteria-style restaurants. The menu features a<br />
variety of meal options with a salad bar and buffet, as well as signature steaks including Chop Steak and Sirloin Tips. Other<br />
signature steaks include a variety of USDA Choice choices, such as 8-oz. Sirloin, Chicken Fried Steak served with homemade<br />
mashed potatoes and creamy gravy, and Austins Steaks—hand cut steaks.Other favorites include hamburger, chicken and<br />
shrimp entrées. All dinners include salad or soup, sugar biscuits and honey butter and choice of potato or vegetable side.<br />
Traditional side items include onion rings, fried mushrooms, soups, salad bar options, baked potatoes, french fries and hash<br />
browns. Also a kids’ meal program is featured and Senior programs are available at some locations. Full liquor service is<br />
available. <strong>Menu</strong> prices range from $1.79–$17.99. Checks average $13.50.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
683
Franchise Activity |<br />
Star Buffet Inc. acquired five Whistle Junction buffet outlets from Banner Buffets LLC in Florida. Star franchises a total of 34<br />
restaurants, including the HomeTown Buffet, K-Bob’s Steakhouse and Western Sizzlin brands. (NRN Daily NewsFax 11/29/06;<br />
Company Release 11/28/06)<br />
Personnel |<br />
James C. Verney, CEO<br />
Sardar Biglari, CEO<br />
Robyn B. Mabe, CFO<br />
John Comstock, Director of Creative Production<br />
Erma Williams, General Buyer<br />
Western Sizzlin hired Sardar Biglari as President and Chief Executive Officer. Previously, Biglari served as Chairman and a<br />
member of the board of directors for the company. Biglari replaces James C. Verney, who was appointed to President and<br />
Chief Executive Officer of the company’s wholly owned subsidiaries, Western Sizzlin Stores Inc. and Western Sizzlin<br />
Franchise Corporation. (Company Release 5/16/07)<br />
Western Sizzlin Corp. has elected Martin S. Fridson to serve as a director on its board. Fridson is the founder and CEO of<br />
FridsonVision LLC, an independent research firm, and has authored several finance books. (Yahoo! Finance 11/28/07)<br />
News & Other |<br />
Western Sizzlin reported for the third quarter ended September 30 net earnings decreased 59% to $8.4 million from $20.3<br />
million for the same period last year. Revenues fell 5.5% for franchise operations and 7.2% for company operations.<br />
(Company Release 11/9/06)<br />
Western Sizzlin Corporation reported for the year ended December 31, net earnings decreased 59.8% to $27.4 million from<br />
$68.1 million for 2005. Revenues fell 10.2% to $174 million from $193.7 million. Same-store sales increased 1.1%. (Company<br />
Release 3/16/07)<br />
Western Sizzlin reported for the first quarter ended March 31 net earnings increased to $14.9 million from $6.2 million for the<br />
same period last year. Revenues declined 0.39% to $412.9 million from $414.5 million. (Company Release 5/15/07)<br />
Western Sizzlin Corp. and Lion Fund L.P. CEO and chairman Sardar Biglari, an Applebee’s shareholder, opposes Applebee’s<br />
pending purchase by IHOP because he thinks Applebee’s is worth more than $25.50 per share and will vote against the<br />
transaction. (Company Release 7/25/07)<br />
Western Sizzlin reported for the second quarter ended June 30 net earnings increased to $232,163 from $143,106 for the<br />
same period last year. Revenues declined 0.4% to $4.69 million from $4.71 million. (Company Release 8/14/07)<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
684
Whataburger<br />
Headquarters<br />
1 Whataburger Way, Corpus Christi, Texas 78411 USA<br />
Tel: (361)878-0650 Fax: (361)878-0473<br />
www.whataburger.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 989,000 882,000 794,078<br />
Company-owned ($000) 771,000 682,000 563,908<br />
Franchised ($000) 218,000 200,000 230,170<br />
U.S. Number of Units 682 657 639<br />
Company-owned 516 496 377<br />
Franchised 166 161 262<br />
International Sales ($000) 225 3,000 3,000<br />
International Units 1 3 3<br />
Average Sales/Unit ($000) 1,451 1,350 1,300<br />
Concept Positioning |<br />
Whataburger Drive-In Restaurants is a limited-serivce hamburger concept specializing in 100% pure American beef burgers<br />
served on a 5-in. toasted bun. The privately held chain operates 683 locations in Arizona, Arkansas, Alabama, Georgia,<br />
Florida, Louisiana, Oklahoma, Mississippi, New Mexico and Texas, 166 of which are franchised.<br />
Units feature orange-and-white exteriors with new blue trim, brick-and-glass décor, and seating for 80–150 patrons. Some are<br />
located in shopping malls. In 2005, the company opened three new prototypes units. The new 4,000-sq.-ft. restaurants seat<br />
about 110 people. The exteriors feature Whataburger’s famous orange and white striped roof, stucco and stone walls plus<br />
double-lane drive-thrus.<br />
Harmon A. Dobson opened Whataburger in 1950 in Corpus Christi, TX, and started franchising units in 1953. The company's<br />
original buildings were small, portable, box-like structures that could be moved from site to site if necessary. A permanent A-<br />
frame building with an orange-and-white striped roof was designed in 1961, and an enclosed dining room was added to all<br />
units five years later. Expansion is currently focused on the South and Southwest.<br />
<strong>Menu</strong> Positioning |<br />
Whataburger's is open for breakfast, lunch and dinner, with most units open 24 hours a day. For breakfast, signature items<br />
include Biscuit with Bacon, Egg & Cheese, Pancakes with Sausage, Taquito with Bacon, Egg & Cheese, and Cinnamon Roll.<br />
For lunch and dinner, the menu offers salads, chicken strips, chicken and fish sandwiches and burgers. Signature items<br />
include Garden salad with Cheddar cheese, chicken strips (available with two, three or four pieces), grilled chicken sandwich<br />
with Cheddar cheese and bacon, Whatacatch Fish Sandwich and a variety of built-to-order Whataburgers. Additionally, eight<br />
Whatameal combinations are available. Kids’ meal options are Chicken Strips and Justaburger. Side items include french fries<br />
and onion rings. Desserts feature a variety of cookies and hot apple pie. Shakes, sodas, and juices are available. <strong>Menu</strong> prices<br />
range from 99¢–$5.59. Checks average $5.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
685
Promotion Plans |<br />
Whataburger Restaurants in northeast Florida and southeast Georgia are giving away meals to uniformed firefighters. The<br />
chain is offering free meals to the firefighters to show appreciation for their commitment and dedication to protecting the<br />
communities in light of the recent wildfires in the areas. More than 200 active wildfires in Florida have closed highways and<br />
burned more than 200,000 acres of land. In Georgia, 41 wildfires have burned more than 260,000 acres. The free meal offer is<br />
effective immediately until further notice. (Company Release 5/15/07)<br />
<strong>Menu</strong> Development |<br />
Whataburger is offering Hot Cherry Pie for a limited time. (Company Website)<br />
Poultry is one of the most popular menu performers for restaurant operators. From chicken dishes, chicken tenders and<br />
turkey, 17.9% of restaurateurs rank chicken or other poultry as their top menu performers, according to the Restaurants &<br />
Institutions 2005 <strong>Menu</strong> Census. Whataburger added the Honey Butter Chicken Biscuit breakfast sandwich as a response to<br />
guests who were ordering chicken strips at breakfast. Zaxby’s features Chicken Fingerz, with all white-chicken meat that has<br />
been marinated overnight and then breaded and deep-fried. The Fingerz are served as part of combos or in salads,<br />
sandwiches and Buffalo-style versions. Cura Hospitality of Orefield, PA, prepares turkey croquettes made with chopped meat,<br />
sautéed onions, celery, creamed corn and egg, which are then breaded and deep fried. At Xavier University in Cincinnati,<br />
students can dine on ground turkey enchiladas, turkey cutlets with bruschetta topping, and turkey cutlet saltimbocca.<br />
(Restaurants & Institutions 12/06 p22)<br />
Whataburger introduced Hot Lemon Pie for a limited time. (Company Website)<br />
Whataburger added the Sweet Ham and Egg Biscuit to its breakfast lineup for a limited time. The item features a slice of ham<br />
with egg, cheese and a sweet apple cinnamon glaze on a warm biscuit. (Company Website)<br />
Whataburger introduced that BBQ Ranch Whatachick’n, crispy chicken, bacon, cheese and creamy BBQ ranch sauce served<br />
on a toasted bun. (Company Website)<br />
Technology |<br />
Whataburger will implement several of XPIENT Solution’s applications, including the Intelligent Restaurant Information System<br />
(IRIS) point-of-sale with integrated credit and debit processing, eKitchen, back office, eSign, Dashboard and Enterprise Data<br />
Manager. (Foodservicecentral.com 9/13/07)<br />
Personnel |<br />
Preston Atkinson, COO/President<br />
Rick Schefsler, Director of Marketing<br />
Todd Coerver, V.P. Brand Development<br />
Tom Dobson, CEO<br />
Wendy Beck, CFO<br />
Dinl Del Neli, V.P. of Purchasing<br />
Whataburger Restaurants Inc. promoted Preston Atkinson to president. Previously, Atkinson served as executive vice<br />
president of the chain. (NRN Daily NewsFax 2/8/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
686
White Castle<br />
Headquarters<br />
555 W. Goodale St., Columbus, Ohio 43215 USA<br />
Tel: (614)228-5781 Fax: (614)464-0596<br />
www.whitecastle.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 539,356 537,008 511,218<br />
Company-owned ($000) 539,356 537,008 511,218<br />
Franchised ($000) - - -<br />
U.S. Number of Units 402 395 395<br />
Company-owned 402 395 395<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,357 1,344 1,318<br />
Concept Positioning |<br />
White Castle, a family-owned, limited-service chain, operates hamburger restaurants offering sitdown, drive-thru and carryout<br />
service 24 hours a day. The privately held chain operates 402 company-owned units in Connecticut, Illinois, Indiana,<br />
Kentucky, Minnesota, Michigan, Missouri, New York, New Jersey, Ohio and Tennessee.<br />
Most units are freestanding buildings designed to look like small white castles. Total area varies from 1,500–3,300 sq. ft. Units<br />
currently being built are smaller and feature decorative glass window inserts and blue awnings. The company has recently<br />
introduced units with new design elements. These updated restaurants feature interior changes such as earth-tone colors,<br />
contemporary artwork and accent lighting. Exterior improvements include new awnings.<br />
Billy Ingram and his partner, Walter Anderson, started the business in Wichita, KS, in 1921with $700 of borrowed money.<br />
<strong>Menu</strong> Positioning |<br />
White Castle is open 24 hours a day, offering a variety of burgers and sandwiches. Signature items include the 2-in. square<br />
hamburgers known as sliders. Variations include double cheeseburger, bacon cheeseburger and jalapeño cheeseburger,. Also<br />
offered are chicken and fish sandwiches. Side items include french fries, chicken rings, cheese sticks and onion chips or rings.<br />
Beverages include soft drinks, iced tea, coffee and vanilla or chocolate milkshakes. <strong>Menu</strong> prices range from 51¢–$14.99.<br />
Checks average $5.<br />
Promotion Plans |<br />
White Castle rolled out its “Share A Meal” promotion. The promotion enables customers to order bundled meals for $9.99.<br />
Customers are offered a choice of nine chicken-ring sandwiches, 18 hamburgers or seven fish sandwiches with a large bag of<br />
french fries or onion rings. The meals are available in most of the company’s locations throughout the Northeast and Midwest<br />
and are being advertised with point-of-purchase material and broadcast spots. (Nation’s Restaurant News 4/24/07)<br />
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published.<br />
687
White Castle has announced the winner of its 16th annual White Castle recipe contest. Leslye Louis’ “The Latkes You Crave”<br />
took first prize, which includes a gift certificate for White Castle’s online store and a Crave Case of 30 hamburgers every week<br />
for a year. More than 300 entries were judged on the most original and tastiest use of 10 White Castle hamburgers.<br />
(Earthtimes.org 11/05/07)<br />
<strong>Menu</strong> Development |<br />
Baseball fans can order “better-for-you” foods at baseball stadiums across the country this summer. Many stadiums, such as<br />
the San Francisco Giants’ AT&T Field, have eliminated trans fats. Fans at U.S. Cellular Field in Chicago can dine on<br />
vegetarian options such as cheese quesadillas, veggie dogs and veggie burgers while cheering for the Chicago White Sox.<br />
Philadelphia Phillies fans at the Citizens Ball Park can order up a VegiCheesesteak with mushrooms, bell peppers, pizza<br />
sauce and cheese on a roll. On other hand, indulgent options are still available. At minor-league team Gateway Grizzlies in<br />
Sauget, IL, baseball fans can have Baseball’s Best Slider, a deep-fried White Castle Burger, priced at $1. Guests can also<br />
order cheese dipping sauce to go with it. (Restaurants & Institutions 5/01/07 p14)<br />
White Castle rolled out Buffalo Chicken Bites. The item has no breading and is infused with hot sauce. It will be available in<br />
small and snack-pack sizes. (Nation’s Restaurant News Online 7/16/07)<br />
White Castle is testing a Pulled Pork Sandwich in select markets. The item is served on a bun. It arrives to restaurants frozen.<br />
(Nation’s Restaurant News Online 7/16/07)<br />
Personnel |<br />
Lisa Ingram, Director of Operations<br />
Bill Ingram, CEO<br />
Russell (Russ) Meyer, CFO<br />
Kim Kelly-Bartley, V.P. of Marketing<br />
News & Other |<br />
DVD vending machines are being installed at select Wendy’s, Meijer and White Castle locations in Columbus, OH. The<br />
vending machines, similar in size to soft-drink vending machines, offer 800 movie titles, with prices ranging from $10-$20.<br />
McDonald’s tested the system in Denver in 2004 and currently has the machines in five units in other cities. (Akron Beacon<br />
Journal 11/01/06)<br />
Wendy’s International Inc. and White Castle have removed calorie counts from nutrition posters in its New York City<br />
restaurants due to having to comply with a new rule that will require restaurants to post calorie counts on their menu boards.<br />
The information is required to be printed in type as large as that for the price or name of the menu item and Wendy’s argues<br />
that there isn’t enough room on its menu boards. (Associated Press 3/2/07)<br />
White Castle is the official sponsor of National Hamburger Month, celebrated during May. The history of White Castle is being<br />
celebrated in a new exhibit in the Ohio Historical Center in Columbus, called “White Castle: The History You Crave.” The<br />
exhibit, which will run through 2007, includes more than 100 images and artifacts from White Castle’s history, including<br />
posters, plates, mugs, glassware, burger boxes, employee recognition pins, match books, paper caps for employees, sacks<br />
and a White Castle “clock” that has no hands because “we’re open all day and all night.” (Company Release 5/1/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
688
Wienerschnitzel<br />
Headquarters<br />
4440 Von Karman Ave. Suite 222, Newport Beach, California 92660 USA<br />
Tel: (800)764-9339 Fax: (949)851-2615<br />
www.wienerschnitzel.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 264,000 251,000 243,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 264,000 251,000 243,000<br />
U.S. Number of Units 372 363 365<br />
Company-owned - - -<br />
Franchised 372 363 365<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 726 686 659<br />
Concept Positioning |<br />
Weinerschnitzel is the world’s largest hot-dog chain offering dine-in, carryout and drive-through service. The Wienerschnitzel<br />
chain, which also includes Original Hamburger Stand locations, is one of two restaurant companies owned by Galardi Group<br />
Inc.; the other is Tastee-Freez. Wienerschnitzel operates 372 franchised units in the U.S.<br />
Both Wienerschnitzel and the Original Hamburger Stand units are trapezoidal with seating at booths or tables for 50-80<br />
patrons. A-frame units are approximately 1,500 sq. ft. with patio seating. Wienerschnitzel hass an additional contemporary A-<br />
frame prototype. In-line locations have also been opened.<br />
The first Wienerschnitzel was opened in 1961 by John Galardi as a hot dog stand called Der Weinerschnitzel. Burgers were<br />
added to the hot-dog-based menu in 1973. The Original Hamburger Stand concept opened in Garden Grove, CA, in 1982.<br />
Currently, Wienerschitzel is looking for franchisees for both concepts.<br />
<strong>Menu</strong> Positioning |<br />
Winerschnitzel's menu features an extensive line of hot dogs, corn dogs, gourmet sausages, chicken sandwiches, hamburgers<br />
and cheeseburgers. Signature items include its Chili-Cheese Hot Dog, BBQ Bacon Hot Dog, Italian or Polish Sausage, Bacon<br />
Ranch Chicken Sandwich and Deluxe Chili Cheeseburger. Eight meal combos are also featured. Side items include french<br />
fries and Chili Cheese Fries. Desserts available include apple pie and Tastee-Freez shakes, freezes, sundaes and cones. A<br />
kids’ menu is available, offering items such as the Mustard Dog or Corn Dog with french fries, choice of soft drink and a prize.<br />
Interestingly, the chain does not actually sell Wiener schnitzel (a breaded veal cutlet). <strong>Menu</strong> prices range from 99¢-$10.99.<br />
Checks average $6.<br />
Promotion Plans |<br />
Wienerschnitzel is offering a two for $2.22 deal for its World Famous Chili Cheese Dog and Chili Cheeseburger. (Company<br />
Website 9/19/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
689
<strong>Menu</strong> Development |<br />
Wienerschnitzel debuted the Philly Cheese Steak Trio, including a Philly Cheese Steak Sandwich ($4.49), a Philly Burger<br />
($3.99) and a Philly Dog ($3.49). (Nation’s Restaurant News 11/06/06 p16)<br />
Wienerschnitzel has brought back its line of pastrami items, including a sandwich, a burger and a hot dog layered with<br />
pastrami. All the items are topped with Swiss cheese, mustard and pickles. They are priced from $2.99 to $3.99. The pastrami<br />
lineup will be available for a limited time. (Nation’s Restaurant News p14 3/26/07)<br />
Wienerschnitzel rolled out Chipotle Ranch Pupsters, a pair of spicy mini sandwiches made with Wienerschnitzel’s Original Hot<br />
Dog on a King’s Hawaiian sweet roll and topped with Tabasco brand Chipotle Pepper Sauce, onion straws, ranch dressing<br />
and pickle chips. (Company Website)<br />
Personnel |<br />
Dennis Tase, COO/President<br />
John N. Galardi, CEO<br />
Debbie Gilliloand, V.P. of Purchasing<br />
Ralph Smolik, V.P. of Research & Development<br />
Tom Amberger, V.P. of Marketing<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
690
Wingstop<br />
Headquarters<br />
1101 East Arapaho Road Suite 150, Richardson, Texas 75081 USA<br />
Tel: (972)686-6500 Fax: (972)686-6502<br />
www.wingstop.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 153,700 118,472 88,000<br />
Company-owned ($000) 4,400 3,544 3,000<br />
Franchised ($000) 149,300 114,928 85,000<br />
U.S. Number of Units 321 247 200<br />
Company-owned 7 5 6<br />
Franchised 314 242 194<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 581 493 505<br />
Concept Positioning |<br />
Wingstop, a limited-service concept, is taking advantage of the continuing increase in chicken consumption by offering a<br />
variety of flavored Buffalo wings. By being predominantly takeout, a service that accounts for 80% of its sales, Wingstop differs<br />
from competitors such as Hooters and Buffalo Wild Wings, which are based chiefly on full-service formats. Hartz Restaurants<br />
is the parent company of Wingstop. In total, 98% of Wingstop locations are franchised; the remaining units are company<br />
owned. Wingstop boasts over 550 locations open, under construction or in development. While Wingstop is a national chain,<br />
most locations are located in the bottom half of the U.S.<br />
Units are primarily suburban structures incorporated into shopping centers. Units range from 1,200–1,600 sq. ft. with seating<br />
for 22–44 guests. The décor follows an aviation theme and are designed like an old-time hanger, with distressed metal walls,<br />
aircraft wings, propellers and control wheels suspended from the ceiling and matted and framed photographs from the<br />
yesterdays of aviation. What the company refers to as “progressive, foreground music,” pulsates in the background. The<br />
music’s decibel level allows customers to talk to their companions but is loud enough so parties cannot overhear their<br />
neighbors’ conversations.<br />
Antonio Swad founded the company in 1994. Swad sold the company in January 2003 to an investment group led by Gemini<br />
Investors out of Boston, MA. With the exception of the Midwestern states Illinois and Missouri, most units are located in the<br />
West and South, specifically Alabama, Arizona, California, Colorado, Florida, Georgia, Louisiana, Nevada, New Mexico,<br />
Oklahoma, Texas and Virginia. New units are to be developed in Las Vegas, Miami, St. Louis, Texas, Louisiana and<br />
Oklahoma. Wingstop plans to continue to increase the number of units in operation via franchising.<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
691
<strong>Menu</strong> Positioning |<br />
Wingstop offers a simple menu of Buffalo wings and side dishes for lunch and dinner. Wing flavors include: Original Hot,<br />
Hawaiian, Garlic Parmesan, Teriyaki, Mild, Lemon Pepper, Cajun, Atomic and Hickory Smoked BBQ. Wings are available in<br />
10, 20, 35, 50, 75 and 100 pieces. Side dishes include the chain’s famous fresh-cut, seasoned fries (sprinkled with a<br />
proprietary fry seasoning), Pearl Potato Salad, Bourbon Baked Beans, Crisp Vegetable Sticks, Creamy Cole Slaw, Dinner<br />
Rolls, Hot Cheese Sauce, and Specialty Dips. Coca-Cola products and 28 varieties of beer are available. Wingstop also offers<br />
party trays and several Family Packs that can feed up to 35 people. No separate kids’ menu is listed. <strong>Menu</strong> prices range from<br />
39¢-$5.69 for a 10-piece order and $52.49 for a 100-piece order. Checks average $9.<br />
Expansion Plans |<br />
Wingstop has opened a new restaurant in Carol Stream, IL. Vincent Romano of Wings of Roselle, LLC, opened the new unit,<br />
which is the company’s second West Chicago Suburb location. (Newswiretoday.com 1/8/07)<br />
Franchise Activity |<br />
Wingstop is expanding in Pennsylvania with 25 new locations. The first of these recently opened in the Pittsburgh area.<br />
Wingstop, based in Dallas, is an aviation-themed chicken-wing franchise with 306 locations and another 300 in development<br />
nationwide. (Pittsburgh Business Times Online 10/11/07)<br />
Wingstop Restaurants Inc. has announced an agreement to open a Wingstop franchise in Benicia, CA, with rapper Earl<br />
Stevens, best known as E-40. Stevens is already co-owner of a Fatburger franchise in Pleasant Hills. Wingstop currently has<br />
nearly 600 units open or under development nationwide. (Businesswire.com 11/14/07)<br />
Personnel |<br />
Andy Howard, E.V.P. of Marketing<br />
Jim Flynn, CEO<br />
Wes Jablonski, CFO<br />
Andy Howard, V.P. of Purchasing<br />
Bill Knight, COO<br />
Andy Howard, V.P. of Research & Development<br />
James Flynn, General Buyer<br />
News & Other |<br />
Wingstop Restaurants chose SIRIUSBusiness as its background music provider. Applied Media Technologies Corporation will<br />
provide the restaurant with sound equipment. SIRIUSBusiness offers commercial-free music from SIRIUS Satellite Radio.<br />
Applied Media Technologies Corporation is the exclusive provider of SIRIUSBusiness. (Franchise Times p 74 4/24/07)<br />
Wingstop reported that it has served one-billion chicken wings to customers spanning 27 states. The company believes that<br />
the major milestone has been achieved because of the brand partners who work to serve customers home-made sides and<br />
dips, fresh wings flavored with one of Wingstop’s own nine proprietary flavors and outstanding service. The chain has also had<br />
15 consecutive quarters of positive same-store sales. (Qsrmagazine.com 6/12/07)<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
692
Zaxby's<br />
Headquarters<br />
1040 Founders Blvd, Athens, Georgia 30606 USA<br />
Tel: (706)353-8107 Fax: (706)433-2330<br />
www.zaxbys.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2006 2005 2004<br />
U.S. Systemwide Sales ($000) 415,000 390,000 240,000<br />
Company-owned ($000) 80,000 75,000 55,000<br />
Franchised ($000) 335,000 315,000 185,000<br />
U.S. Number of Units 350 332 226<br />
Company-owned 70 60 46<br />
Franchised 280 272 180<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,250 1,250 1,250<br />
Concept Positioning |<br />
Zaxby's is a limited-service eatery known for its made-to-order chicken fingers, jumbo Buffalo wings and signature wing<br />
sauces. Located primarily in Arkansas, Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and<br />
Tennessee, Zaxby’s is privately held and currently operates nearly 350 units, 280 of which are franchised.<br />
Restaurants are designed to operate in traditional freestanding buildings. Units typically average 3,300-3,800 sq. ft., with<br />
seating for 250 guests. Décor is casual, with vibrant colors of cobalt blue and gold. Stores serve lunch and dinner seven days<br />
a week. Party platters are available.<br />
Childhood friends Zach McLeroy and Tony Townley founded Zaxby’s in 1990 in Statesboro, GA. Franchising began in 1994.<br />
Zaxby's Franchising Inc. plans to have 1,000 units operating within the next several years. The company has identified Texas<br />
as a major growth market. Zaxby’s is opening units in Arizona, Alabama, Arkansas, Georgia, North Carolina and Tennessee<br />
and is seeking franchisees.<br />
<strong>Menu</strong> Positioning |<br />
Zaxby's is open for lunch and dinner, focusing on signature chicken offerings. Some favorite selections include Zappetizers,<br />
Zalads, Sandwich Baskets, Chicken or Buffalo Fingerz, Buffalo Wings and Party Platterz. Appetizers include Tater Chips and<br />
Spicy Fried Mushrooms. A number of "Zalads" are offered, from Grilled or Fried Chicken Salad to Caesar and Greek salads.<br />
Sandwich baskets are served with french fries and a pickle spear. Chicken Wings are slathered in Zaxby's own sauces,<br />
including Original, Wimpy, Tongue Torch, Nuclear, Insane, Teriyaki, BBQ and Hot Honey Mustard. Other popular items include<br />
the Monterey Jack Sandwich, Jumbo Buffalo Wings available in servings of 10 or 20 pieces, and Chicken Fingerz available<br />
with five, 10, or 20 pieces. Zaxby's has also developed a $4.99 meal deal. A kids’ menu features Kiddie Nuggetz and Kiddie<br />
Grilled Cheese. Side items include Crinkle Fries, Texas Toast, Carrots & Celery, Cup of Chicken Salad and Cole Slaw.<br />
Cheesecake, Key Lime Pie and fresh baked cookies are available for dessert. <strong>Menu</strong> prices range from $5-$12. Checks<br />
average $8.<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
693
Expansion Plans |<br />
Zaxby’s will add 15 new units in the Memphis area, almost tripling its presence there. The new units are slated for Shelby,<br />
Fayette and Tipton counties in Tennessee, and Tate and Marshall counties in Mississippi. The chain has opened eight<br />
locations in the Memphis metro market over the past four years. (Bizjournals.com 9/7/07)<br />
Zaxby’s is opening three locations, one in Arizona and two in Alabama, in September and October. The Arizona unit will be<br />
located in Sherwood, and the two Alabama locations will open in Northport and Selma. (Iron-horsedevelopment.com 9/26/07)<br />
<strong>Menu</strong> Development |<br />
Zaxby’s launched Lemon Pepper Wings and Spicy Jerk Wings for a limited time only. (Company Website)<br />
Poultry is one of the most popular menu performers for restaurant operators. From chicken dishes, chicken tenders and<br />
turkey, 17.9% of restaurateurs rank chicken or other poultry as their top menu performers, according to the Restaurants &<br />
Institutions 2005 <strong>Menu</strong> Census. Whataburger added the Honey Butter Chicken Biscuit breakfast sandwich as a response to<br />
guests who were ordering chicken strips at breakfast. Zaxby’s features Chicken Fingerz, with all white-chicken meat that has<br />
been marinated overnight and then breaded and deep-fried. The Fingerz are served as part of combos or in salads,<br />
sandwiches and Buffalo-style versions. Cura Hospitality of Orefield, PA, prepares turkey croquettes made with chopped meat,<br />
sautéed onions, celery, creamed corn and egg, which are then breaded and deep fried. At Xavier University in Cincinnati,<br />
students can dine on ground turkey enchiladas, turkey cutlets with bruschetta topping, and turkey cutlet saltimbocca.<br />
(Restaurants & Institutions 12/06 p22)<br />
Technology |<br />
Zaxby’s has installed Hyperactive Technologies’ robot systems in 115 of its restaurants. The robot, Hyperactive Bob, will scan<br />
parking lots for incoming customers, issue cooking orders to employees and cross-reference traffic patterns against data about<br />
the restaurant. (News.com.com 3/26/07)<br />
Zaxby’s selected MICROS RES 4.0 as its point-of-sale technology in a multi-year deal. The chain also plans to implement<br />
MICROS Workstation 4 LX, MICROS Kitchen Display Systems and mymicros.net. The system will be in 100 corporate and<br />
franchised Zaxby’s locations by January 2008. (Restaurantnewsresource.com 9/28/07)<br />
Personnel |<br />
Robert Baxley, Director of Operations<br />
Mike Sobal, Director of Purchasing<br />
Steffany Strobal, Director of Research & Development<br />
Tony Townley, CFO<br />
Zach MacLoroy, President<br />
Molly Huff, Marketing Supervisor<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
694
Appendix A<br />
<strong>Menu</strong> Classification<br />
Full Service Asian/Noodle<br />
Benihana...................................................................... 53<br />
P.F. Chang's China Bistro.......................................... 486<br />
Full Service BBQ<br />
Dickey's Barbecue Pit ................................................ 232<br />
Famous Dave's .......................................................... 267<br />
Smokey Bones Barbeque & Grill ............................... 626<br />
Sonny's Real Pit BBQ ................................................ 635<br />
Tony Roma's.............................................................. 691<br />
Full Service Italian<br />
Bertucci's ..................................................................... 59<br />
Bravo! Cucina Italiana.................................................. 86<br />
Buca di Beppo ............................................................. 93<br />
Carino's Italian Grill.................................................... 125<br />
Carrabba's Italian Grill ............................................... 133<br />
Il Fornaio.................................................................... 339<br />
LaRosa's Pizzeria ...................................................... 388<br />
Maggiano's................................................................. 409<br />
Old Spaghetti Factory, The ........................................ 471<br />
Olive Garden.............................................................. 473<br />
Romano's Macaroni Grill............................................ 579<br />
Full Service Family Style<br />
Bakers Square ............................................................. 41<br />
Big Boy ........................................................................ 61<br />
Bob Evans ................................................................... 74<br />
Carrows ..................................................................... 136<br />
Coco's Bakery Restaurant ......................................... 188<br />
Country Kitchen ......................................................... 202<br />
Country Market Restaurant & Buffet, The.................. 204<br />
Country Pride............................................................. 206<br />
Cracker Barrel Old Country Store .............................. 208<br />
Denny's...................................................................... 227<br />
Eat'n Park .................................................................. 249<br />
Friendly's.................................................................... 293<br />
Huddle House ............................................................ 328<br />
IHOP.......................................................................... 334<br />
Iron Skillet .................................................................. 343<br />
Marie Callender's Restaurant & Bakery ..................... 412<br />
Original Pancake House, The .................................... 480<br />
Perkins Restaurants & Bakery ................................... 518<br />
Shari's Restaurants.................................................... 608<br />
Shoney's .................................................................... 612<br />
Silver Diner ................................................................ 616<br />
Village Inn .................................................................. 699<br />
Waffle House ............................................................. 702<br />
Full Service Hamburger<br />
Cheeburger Cheeburger ............................................ 154<br />
Cheeseburger in Paradise ......................................... 156<br />
Johnny Rockets ......................................................... 367<br />
Steak n Shake ........................................................... 653<br />
Full Service Mexican<br />
Abuelo's Mexican Food Embassy.................................. 6<br />
Acapulco Mexican Restaurant and Cantina ................... 8<br />
Carlos O'Kelly's.......................................................... 131<br />
Chevys Fresh Mex..................................................... 163<br />
Don Pablo's................................................................ 239<br />
El Chico Cafe............................................................. 256<br />
El Torito ..................................................................... 261<br />
On The Border Mexican Grill & Cantina..................... 477<br />
Pappasito's Cantina ................................................... 513<br />
Tumbleweed Southwest Grill ..................................... 693<br />
Full Service Other<br />
Bahama Breeze ........................................................... 36<br />
Copeland's of New Orleans ....................................... 194<br />
Melting Pot................................................................. 442<br />
Full Service Seafood<br />
Bonefish Grill ............................................................... 80<br />
Bubba Gump Shrimp Co.............................................. 91<br />
Chart House............................................................... 147<br />
Joe's Crab Shack....................................................... 365<br />
Landry's Seafood House............................................ 386<br />
Legal Sea Foods........................................................ 392<br />
McCormick & Schmick's............................................. 422<br />
McGrath's Fish House ............................................... 440<br />
Pappadeaux Seafood Kitchen ................................... 511<br />
Red Lobster ............................................................... 561<br />
Roy's Restaurants...................................................... 586<br />
Shells Seafood........................................................... 610<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
1
Full Service Steak<br />
Black Angus Steakhouse..............................................66<br />
Bugaboo Creek Steak House .......................................99<br />
Capital Grille, The.......................................................116<br />
Charlie Brown's Steakhouses.....................................145<br />
Fleming's Prime Steakhouse & Wine Bar ...................284<br />
Logan's Roadhouse....................................................396<br />
Lone Star Steakhouse and Saloon .............................398<br />
LongHorn Steakhouse ................................................403<br />
Morton's The Steakhouse...........................................451<br />
Outback Steakhouse ..................................................482<br />
Palm Restaurant.........................................................489<br />
Roadhouse Grill..........................................................573<br />
Ruth's Chris Steak House...........................................595<br />
Saltgrass Steak House ...............................................601<br />
Shula's Steak House ..................................................614<br />
Smith & Wollensky......................................................623<br />
Steak and Ale .............................................................651<br />
Texas Roadhouse ......................................................684<br />
Full Service Varied <strong>Menu</strong><br />
99 Restaurants ...............................................................1<br />
Ale House .....................................................................10<br />
Applebee's Neighborhood Grill & Bar ...........................12<br />
Beef O'Brady's..............................................................49<br />
Bennigan's Grill & Tavern .............................................55<br />
BJ's Restaurant & Brewery...........................................63<br />
Black-eyed Pea ............................................................68<br />
Buffalo Wild Wings Grill & Bar ......................................96<br />
California Pizza Kitchen..............................................111<br />
Champps Entertainment, Inc. .....................................140<br />
Cheddar's Casual Cafe...............................................152<br />
Cheesecake Factory, The...........................................158<br />
Chili's Grill & Bar.........................................................168<br />
Claim Jumper .............................................................186<br />
Damon's Grill ..............................................................219<br />
Dave & Buster's ..........................................................222<br />
Elephant Bar Restaurant ............................................263<br />
ESPN Zone.................................................................265<br />
Fox and Hound English Pub & Grille ..........................287<br />
Green Mill Restaurant and Bar ...................................309<br />
Ground Round Grill & Bar...........................................311<br />
Hard Rock Cafe ..........................................................313<br />
Hooters .......................................................................321<br />
Houlihan's...................................................................324<br />
Houston's....................................................................326<br />
Islands Fine Burgers & Drinks ....................................345<br />
J. Alexander's .............................................................347<br />
Max & Erma's .............................................................415<br />
Mimi's Cafe.................................................................444<br />
O'Charley's .................................................................464<br />
Old Chicago Restaurants............................................467<br />
Rainforest Cafe...........................................................557<br />
Red Robin Gourmet Burgers ......................................565<br />
Rock Bottom Brewery .................................................575<br />
Ruby Tuesday ............................................................591<br />
T.G.I. Friday's .............................................................660<br />
Uno Chicago Grill .......................................................695<br />
Limited Service Asian/Noodle<br />
Noodles & Company...................................................462<br />
Panda Express ...........................................................494<br />
Pei Wei Asian Diner....................................................515<br />
Pick Up Stix ................................................................525<br />
Limited Service Bagel<br />
Bruegger's Bagel Bakery ..............................................88<br />
Limited Service Bakery/Café<br />
Atlanta Bread Company................................................25<br />
Au Bon Pain..................................................................27<br />
Corner Bakery ............................................................196<br />
Einstein Bros. Bagels..................................................252<br />
la Madeleine ...............................................................384<br />
Panera Bread/Saint Louis Bread Co...........................496<br />
Limited Service Cafeteria/Buffet<br />
Barnhill's Buffet.............................................................43<br />
Furr's Family Dining....................................................299<br />
K&W Cafeterias ..........................................................369<br />
Luby's .........................................................................406<br />
Old Country Buffet/HomeTown Buffet.........................469<br />
Pancho's Mexican Buffet ............................................492<br />
Piccadilly.....................................................................523<br />
Souplantation & Sweet Tomatoes ..............................637<br />
Limited Service Chicken<br />
Bojangles' Famous Chicken 'N Biscuits........................77<br />
Boston Market ..............................................................82<br />
Chick-fil-A ...................................................................165<br />
Church's Chicken........................................................179<br />
El Pollo Loco...............................................................258<br />
KFC ............................................................................371<br />
Lee's Famous Recipe Chicken ...................................390<br />
Mrs. Winner's Chicken & Biscuits ...............................458<br />
Pollo Tropical..............................................................539<br />
Popeyes Chicken & Biscuits .......................................543<br />
Wingstop.....................................................................718<br />
Zaxby's .......................................................................720<br />
Limited Service Coffee/Beverage<br />
Caribou Coffee ...........................................................121<br />
Gloria Jean's Coffee ...................................................301<br />
Jamba Juice ...............................................................354<br />
Smoothie King ............................................................629<br />
Starbucks....................................................................639<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
2
Limited Service Donut<br />
Dunkin' Donuts........................................................... 243<br />
Krispy Kreme ............................................................. 377<br />
Tim Hortons ............................................................... 686<br />
Limited Service Frozen Dessert<br />
Baskin-Robbins............................................................ 45<br />
Ben & Jerry's................................................................ 51<br />
Braum's Ice Cream & Dairy Stores .............................. 84<br />
Carvel Ice Cream....................................................... 138<br />
Cold Stone Creamery ................................................ 190<br />
Dairy Queen............................................................... 216<br />
Freshen's ................................................................... 291<br />
Häagen-Dazs............................................................. 332<br />
Tastee Freez.............................................................. 680<br />
TCBY ......................................................................... 682<br />
Limited Service Hamburger<br />
A&W Restaurants .......................................................... 4<br />
Arctic Circle Restaurants ............................................. 23<br />
Back Yard Burgers....................................................... 34<br />
Blake's Lotaburger ....................................................... 70<br />
Burger King................................................................ 102<br />
Carl's Jr...................................................................... 127<br />
Checkers Drive-In Restaurants.................................. 149<br />
Culver's Frozen Custard ............................................ 211<br />
Farmer Boys .............................................................. 270<br />
Fatburger ................................................................... 272<br />
Five Guys Famous Burgers & Fries........................... 282<br />
Fuddruckers............................................................... 297<br />
Hardee's .................................................................... 316<br />
In-N-Out Burger ......................................................... 341<br />
Jack in the Box .......................................................... 349<br />
Krystal Company ....................................................... 382<br />
McDonald's ................................................................ 425<br />
Rally's Hamburgers.................................................... 559<br />
SONIC Drive-Ins ........................................................ 631<br />
Wendy's Old Fashioned Hamburgers ........................ 704<br />
Whataburger .............................................................. 712<br />
White Castle .............................................................. 714<br />
Limited Service Mexican<br />
Baja Fresh Mexican Grill.............................................. 38<br />
Chipotle Mexican Grill................................................ 172<br />
Del Taco .................................................................... 224<br />
Moe's Southwest Grill ................................................ 448<br />
Qdoba Mexican Grill .................................................. 550<br />
Rubio's Fresh Mexican Grill ....................................... 589<br />
Taco Bell.................................................................... 665<br />
Taco Bueno ............................................................... 671<br />
Taco Cabana ............................................................. 673<br />
Taco John's................................................................ 675<br />
TacoTime................................................................... 678<br />
Limited Service Other<br />
Fazoli's....................................................................... 275<br />
Skyline Chili ............................................................... 621<br />
Limited Service Other Sandwich<br />
Arby's........................................................................... 18<br />
Blimpie Subs & Salads................................................. 72<br />
Charley's Grilled Subs ............................................... 143<br />
Cosi............................................................................ 199<br />
D'Angelo Grilled Sandwiches..................................... 214<br />
Firehouse Subs.......................................................... 279<br />
Great Steak & Potato Co., The .................................. 307<br />
Jason's Deli................................................................ 357<br />
Jersey Mike's Subs .................................................... 359<br />
Jimmy John's Gourmet Sandwich Shop .................... 363<br />
McAlister's Deli .......................................................... 420<br />
Nathan's Famous....................................................... 460<br />
Portillo's Hot Dogs ..................................................... 546<br />
Potbelly Sandwich Works .......................................... 548<br />
Quiznos Subs ............................................................ 553<br />
Roly Poly.................................................................... 577<br />
Roy Rogers Restaurants............................................ 584<br />
Schlotzsky's ............................................................... 605<br />
Subway ...................................................................... 656<br />
Togo's Eatery/Dunkin' Deli......................................... 689<br />
Wienerschnitzel ......................................................... 716<br />
Limited Service Pizza<br />
Chuck E. Cheese's .................................................... 176<br />
CiCi's Pizza................................................................ 182<br />
Domino's Pizza .......................................................... 234<br />
Donatos Pizza............................................................ 241<br />
Fox's Pizza Den ......................................................... 289<br />
Godfather's Pizza....................................................... 303<br />
Hungry Howie's Pizza & Subs.................................... 330<br />
Jet's Pizza.................................................................. 361<br />
Little Caesars............................................................. 394<br />
Mazzio's Italian Eatery ............................................... 418<br />
Mr. Gatti's................................................................... 454<br />
Papa Gino's Pizzeria.................................................. 501<br />
Papa John's ............................................................... 503<br />
Papa Murphy's Take 'N' Bake Pizza .......................... 509<br />
Peter Piper Pizza ....................................................... 521<br />
Pizza Hut ................................................................... 527<br />
Pizza Inn .................................................................... 532<br />
Pizza Pro ................................................................... 535<br />
Pizzas of Eight ........................................................... 537<br />
Round Table Pizza .................................................... 582<br />
Sbarro ........................................................................ 603<br />
Villa Fresh Italian Kitchen .......................................... 697<br />
Limited Service Seafood<br />
Captain D's Seafood Kitchen ..................................... 118<br />
Long John Silver's...................................................... 400<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
3
Limited Service Snack<br />
Auntie Anne's................................................................30<br />
Cinnabon ....................................................................184<br />
Mrs. Fields ..................................................................456<br />
Limited Service Steak<br />
Fire Mountain..............................................................277<br />
Golden Corral .............................................................305<br />
Ponderosa/Bonanza ...................................................541<br />
Ryan's Grill, Buffet & Bakery.......................................599<br />
Sizzler.........................................................................618<br />
WesterN SizzliN..........................................................710<br />
Multiple Concepts Varied <strong>Menu</strong><br />
Avado Brands, Inc. .......................................................32<br />
Restaurants Unlimited ................................................571<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
4
Appendix B<br />
Company Index<br />
Abuelo's Mexican Food Embassy<br />
Abuelo's Mexican Food Embassy.................................. 6<br />
BJ's Restaurant & Brewery<br />
BJ's Restaurant & Brewery .......................................... 63<br />
Ale House<br />
Ale House .................................................................... 10<br />
Back Yard Burgers<br />
Back Yard Burgers....................................................... 34<br />
Arby's<br />
Arby's........................................................................... 18<br />
Baja Fresh Mexican Grill<br />
Baja Fresh Mexican Grill.............................................. 38<br />
Arcapita Inc.<br />
Caribou Coffee........................................................... 121<br />
Church's Chicken....................................................... 179<br />
Arctic Circle Restaurants<br />
Arctic Circle Restaurants ............................................. 23<br />
Atlanta Bread Company<br />
Atlanta Bread Company............................................... 25<br />
Au Bon Pain<br />
Au Bon Pain................................................................. 27<br />
Auntie Anne's<br />
Auntie Anne's............................................................... 30<br />
Avado Brands, Inc.<br />
Avado Brands, Inc........................................................ 32<br />
Don Pablo's................................................................ 239<br />
Barnhill's Buffet<br />
Barnhill's Buffet ............................................................ 43<br />
Beef O'Brady's<br />
Beef O'Brady's ............................................................. 49<br />
Ben & Jerry's<br />
Ben & Jerry's................................................................ 51<br />
Benihana Inc.<br />
Benihana...................................................................... 53<br />
Bertucci's<br />
Bertucci's ..................................................................... 59<br />
Big Boy<br />
Big Boy ........................................................................ 61<br />
Black Angus Steakhouse<br />
Black Angus Steakhouse ............................................. 66<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
1
Black-eyed Pea<br />
Black-eyed Pea ............................................................68<br />
Buffalo Wild Wings Grill & Bar<br />
Buffalo Wild Wings Grill & Bar ......................................96<br />
Blake's Lotaburger<br />
Blake's Lotaburger........................................................70<br />
Bob Evans Farms, Inc.<br />
Bob Evans ....................................................................74<br />
Mimi's Cafe.................................................................444<br />
Bojangles' Famous Chicken 'N Biscuits<br />
Bojangles' Famous Chicken 'N Biscuits........................77<br />
Boston Market<br />
Boston Market ..............................................................82<br />
Braum's Ice Cream & Dairy Stores<br />
Braum's Ice Cream & Dairy Stores ...............................84<br />
Bravo Development Inc.<br />
Bravo! Cucina Italiana...................................................86<br />
Brinker International<br />
Chili's Grill & Bar.........................................................168<br />
Maggiano's .................................................................409<br />
On The Border Mexican Grill & Cantina......................477<br />
Romano's Macaroni Grill ............................................579<br />
Buffets Holdings, Inc.<br />
Fire Mountain..............................................................277<br />
Old Country Buffet/HomeTown Buffet.........................469<br />
Ryan's Grill, Buffet & Bakery.......................................599<br />
Burger King<br />
Burger King.................................................................102<br />
CBRL Group, Inc.<br />
Cracker Barrel Old Country Store...............................208<br />
CKE Restaurants, Inc.<br />
Carl's Jr.......................................................................127<br />
Hardee's .....................................................................316<br />
California Pizza Kitchen<br />
California Pizza Kitchen..............................................111<br />
Captain D's Seafood Kitchen<br />
Captain D's Seafood Kitchen......................................118<br />
Del Taco .....................................................................224<br />
Carino's Italian Grill<br />
Carino's Italian Grill.....................................................125<br />
Bruegger's Bagel Bakery<br />
Bruegger's Bagel Bakery ..............................................88<br />
Carlos O'Kelly's<br />
Carlos O'Kelly's...........................................................131<br />
Bubba Gump Shrimp Co.<br />
Bubba Gump Shrimp Co...............................................91<br />
Buca di Beppo<br />
Buca di Beppo ..............................................................93<br />
Carlson Restaurants Worldwide<br />
Pick Up Stix ................................................................525<br />
T.G.I. Friday's .............................................................660<br />
Carrols Holdings Corp.<br />
Pollo Tropical..............................................................539<br />
Taco Cabana ..............................................................673<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
2
Castle Harlan, Inc.<br />
Marie Callender's Restaurant & Bakery ..................... 412<br />
Perkins Restaurants & Bakery ................................... 518<br />
Catalina Restaurant Group Inc.<br />
Carrows ..................................................................... 136<br />
Coco's Bakery Restaurant ......................................... 188<br />
Charley's Grilled Subs<br />
Charley's Grilled Subs ............................................... 143<br />
Charlie Brown's Steakhouses<br />
Bugaboo Creek Steak House ...................................... 99<br />
Charlie Brown's Steakhouses .................................... 145<br />
Checkers Drive-In Restaurants, Inc.<br />
Checkers Drive-In Restaurants.................................. 149<br />
Rally's Hamburgers.................................................... 559<br />
Cheddar's Casual Cafe<br />
Cheddar's Casual Cafe.............................................. 152<br />
Cheeburger Cheeburger<br />
Cheeburger Cheeburger ............................................ 154<br />
Cheesecake Factory, The<br />
Cheesecake Factory, The.......................................... 158<br />
Chick-fil-A<br />
Chick-fil-A .................................................................. 165<br />
Chipotle Mexican Grill<br />
Chipotle Mexican Grill................................................ 172<br />
Chuck E. Cheese's<br />
Chuck E. Cheese's .................................................... 176<br />
CiCi's Pizza<br />
CiCi's Pizza................................................................ 182<br />
Claim Jumper<br />
Claim Jumper............................................................. 186<br />
Consolidated Restaurant Operations<br />
El Chico Cafe............................................................. 256<br />
Copeland's of New Orleans<br />
Copeland's of New Orleans ....................................... 194<br />
Cosi<br />
Cosi............................................................................ 199<br />
Country Kitchen<br />
Country Kitchen ......................................................... 202<br />
Country Market Restaurant & Buffet,<br />
The<br />
Country Market Restaurant & Buffet, The.................. 204<br />
Country Pride<br />
Country Pride............................................................. 206<br />
Culver's Frozen Custard<br />
Culver's Frozen Custard ............................................ 211<br />
Damon's Grill<br />
Damon's Grill ............................................................. 219<br />
Darden Restaurants, Inc.<br />
Bahama Breeze ........................................................... 36<br />
Capital Grille, The ...................................................... 116<br />
LongHorn Steakhouse ............................................... 403<br />
Olive Garden.............................................................. 473<br />
Red Lobster ............................................................... 561<br />
Smokey Bones Barbeque & Grill ............................... 626<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
3
Dave & Buster's<br />
Dave & Buster's ..........................................................222<br />
Cinnabon ....................................................................184<br />
Moe's Southwest Grill .................................................448<br />
Schlotzsky's................................................................605<br />
Denny's<br />
Denny's.......................................................................227<br />
Famous Dave's<br />
Famous Dave's...........................................................267<br />
Dickey's Barbecue Pit<br />
Dickey's Barbecue Pit.................................................232<br />
Farmer Boys<br />
Farmer Boys ...............................................................270<br />
Domino's Pizza<br />
Domino's Pizza ...........................................................234<br />
Fatburger<br />
Fatburger ....................................................................272<br />
Donatos Pizza<br />
Donatos Pizza ............................................................241<br />
Fazoli's<br />
Fazoli's .......................................................................275<br />
Dunkin' Brands<br />
Baskin-Robbins ............................................................45<br />
Dunkin' Donuts ...........................................................243<br />
Togo's Eatery/Dunkin' Deli..........................................689<br />
ESPN Zone<br />
ESPN Zone.................................................................265<br />
Eat'n Park<br />
Eat'n Park ...................................................................249<br />
Einstein Noah Restaurant Group Inc.<br />
Einstein Bros. Bagels..................................................252<br />
El Pollo Loco<br />
El Pollo Loco...............................................................258<br />
Elephant Bar Restaurant<br />
Elephant Bar Restaurant ............................................263<br />
FOCUS Brands Inc.<br />
Carvel Ice Cream........................................................138<br />
Firehouse Subs<br />
Firehouse Subs ..........................................................279<br />
Five Guys Famous Burgers & Fries<br />
Five Guys Famous Burgers & Fries............................282<br />
Fox and Hound English Pub & Grille<br />
Champps Entertainment, Inc. .....................................140<br />
Fox and Hound English Pub & Grille ..........................287<br />
Fox's Pizza Den<br />
Fox's Pizza Den..........................................................289<br />
Freshen's<br />
Freshen's....................................................................291<br />
Friendly's<br />
Friendly's ....................................................................293<br />
Fuddruckers<br />
Fuddruckers................................................................297<br />
4<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.
Furr's Family Dining<br />
Furr's Family Dining ................................................... 299<br />
Hungry Howie's Pizza & Subs<br />
Hungry Howie's Pizza & Subs.................................... 330<br />
Galardi Group Inc.<br />
Tastee Freez.............................................................. 680<br />
Wienerschnitzel ......................................................... 716<br />
Gloria Jean's Coffee<br />
Gloria Jean's Coffee .................................................. 301<br />
Häagen-Dazs<br />
Häagen-Dazs............................................................. 332<br />
IHOP<br />
Applebee's Neighborhood Grill & Bar .......................... 12<br />
IHOP.......................................................................... 334<br />
Godfather's Pizza<br />
Godfather's Pizza....................................................... 303<br />
Golden Corral<br />
Golden Corral ............................................................ 305<br />
Green Mill Restaurant and Bar<br />
Green Mill Restaurant and Bar .................................. 309<br />
Ground Round Grill & Bar<br />
Ground Round Grill & Bar .......................................... 311<br />
Hard Rock Cafe<br />
Hard Rock Cafe ......................................................... 313<br />
Hillstone Restaurant Group Inc.<br />
Houston's................................................................... 326<br />
Hooters<br />
Hooters ...................................................................... 321<br />
Houlihan's Restaurants Inc.<br />
Houlihan's .................................................................. 324<br />
Huddle House<br />
Huddle House ............................................................ 328<br />
Il Fornaio<br />
Corner Bakery............................................................ 196<br />
Il Fornaio.................................................................... 339<br />
In-N-Out Burger<br />
In-N-Out Burger ......................................................... 341<br />
International Dairy Queen, Inc.<br />
Dairy Queen............................................................... 216<br />
Iron Skillet<br />
Iron Skillet .................................................................. 343<br />
Islands Fine Burgers & Drinks<br />
Islands Fine Burgers & Drinks ................................... 345<br />
J. Alexander's<br />
J. Alexander's ............................................................ 347<br />
Jack in the Box Inc.<br />
Jack in the Box .......................................................... 349<br />
Qdoba Mexican Grill .................................................. 550<br />
Jamba Juice<br />
Jamba Juice............................................................... 354<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
5
Jason's Deli<br />
Jason's Deli ................................................................357<br />
Jersey Mike's Subs<br />
Jersey Mike's Subs.....................................................359<br />
Jet's Pizza<br />
Jet's Pizza...................................................................361<br />
Jimmy John's Gourmet Sandwich Shop<br />
Jimmy John's Gourmet Sandwich Shop .....................363<br />
Joe's Crab Shack<br />
Joe's Crab Shack........................................................365<br />
Johnny Rockets<br />
Johnny Rockets ..........................................................367<br />
K&W Cafeterias<br />
K&W Cafeterias ..........................................................369<br />
Kahala-Cold Stone<br />
Blimpie Subs & Salads .................................................72<br />
Cold Stone Creamery .................................................190<br />
Great Steak & Potato Co., The ...................................307<br />
TacoTime....................................................................678<br />
Krispy Kreme<br />
Krispy Kreme ..............................................................377<br />
Krystal Company<br />
Krystal Company ........................................................382<br />
LaRosa's Pizzeria<br />
LaRosa's Pizzeria .......................................................388<br />
Landry's Restaurants, Inc.<br />
Chart House ...............................................................147<br />
Landry's Seafood House ............................................386<br />
Rainforest Cafe...........................................................557<br />
Saltgrass Steak House ...............................................601<br />
Lee's Famous Recipe Chicken<br />
Lee's Famous Recipe Chicken ...................................390<br />
Mrs. Winner's Chicken & Biscuits ...............................458<br />
Legal Sea Foods<br />
Legal Sea Foods ........................................................392<br />
Little Caesars<br />
Little Caesars..............................................................394<br />
Logan's Roadhouse<br />
Logan's Roadhouse....................................................396<br />
Lone Star Steakhouse and Saloon, Inc.<br />
Lone Star Steakhouse and Saloon .............................398<br />
Luby's<br />
Luby's .........................................................................406<br />
Max & Erma's<br />
Max & Erma's .............................................................415<br />
Mazzio's Corp.<br />
Mazzio's Italian Eatery................................................418<br />
McAlister's Deli<br />
McAlister's Deli ...........................................................420<br />
McCormick & Schmick's<br />
McCormick & Schmick's .............................................422<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
6
McDonald's<br />
McDonald's ................................................................ 425<br />
McGrath's Fish House<br />
McGrath's Fish House ............................................... 440<br />
Melting Pot<br />
Melting Pot................................................................. 442<br />
Metromedia Restaurant Group<br />
Bennigan's Grill & Tavern ............................................ 55<br />
Ponderosa/Bonanza .................................................. 541<br />
Steak and Ale ............................................................ 651<br />
Morton's The Steakhouse<br />
Morton's The Steakhouse .......................................... 451<br />
Mr. Gatti's<br />
Mr. Gatti's................................................................... 454<br />
Mrs. Fields Famous Brands LLC<br />
Mrs. Fields ................................................................. 456<br />
TCBY ......................................................................... 682<br />
Nathan's Famous, Inc.<br />
Nathan's Famous....................................................... 460<br />
Noodles & Company<br />
Noodles & Company.................................................. 462<br />
O'Charley's Inc.<br />
99 Restaurants .............................................................. 1<br />
O'Charley's ................................................................ 464<br />
OSI Restaurant Partners Inc.<br />
Bonefish Grill ............................................................... 80<br />
Carrabba's Italian Grill ............................................... 133<br />
Cheeseburger in Paradise ......................................... 156<br />
Fleming's Prime Steakhouse & Wine Bar .................. 284<br />
Outback Steakhouse.................................................. 482<br />
Roy's Restaurants...................................................... 586<br />
Old Spaghetti Factory, The<br />
Old Spaghetti Factory, The ........................................ 471<br />
Original Pancake House, The<br />
Original Pancake House, The .................................... 480<br />
P.F. Chang's China Bistro Inc.<br />
P.F. Chang's China Bistro.......................................... 486<br />
Pei Wei Asian Diner ................................................... 515<br />
Palm Restaurant<br />
Palm Restaurant ........................................................ 489<br />
Pancho's Mexican Buffet<br />
Pancho's Mexican Buffet ........................................... 492<br />
Panda Restaurant Group Inc.<br />
Panda Express .......................................................... 494<br />
Panera Bread/Saint Louis Bread Co.<br />
Panera Bread/Saint Louis Bread Co.......................... 496<br />
Papa Gino's Restaurant Group Inc.<br />
D'Angelo Grilled Sandwiches..................................... 214<br />
Papa Gino's Pizzeria.................................................. 501<br />
Papa John's<br />
Papa John's ............................................................... 503<br />
Papa Murphy's Take 'N' Bake Pizza<br />
Papa Murphy's Take 'N' Bake Pizza .......................... 509<br />
Pappas Restaurants<br />
Pappadeaux Seafood Kitchen ................................... 511<br />
Pappasito's Cantina ................................................... 513<br />
7<br />
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published.
Peter Piper Pizza<br />
Peter Piper Pizza........................................................521<br />
Roadhouse Grill<br />
Roadhouse Grill..........................................................573<br />
Piccadilly<br />
Piccadilly.....................................................................523<br />
Pizza Inn<br />
Pizza Inn.....................................................................532<br />
Pizza Pro<br />
Pizza Pro ....................................................................535<br />
Pizzas of Eight<br />
Pizzas of Eight............................................................537<br />
Popeyes Chicken & Biscuits<br />
Popeyes Chicken & Biscuits .......................................543<br />
Portillo's Hot Dogs<br />
Portillo's Hot Dogs ......................................................546<br />
Potbelly Sandwich Works<br />
Potbelly Sandwich Works ...........................................548<br />
Quiznos Subs<br />
Quiznos Subs .............................................................553<br />
Real Mex Restaurants<br />
Acapulco Mexican Restaurant and Cantina....................8<br />
Chevys Fresh Mex......................................................163<br />
El Torito ......................................................................261<br />
Red Robin Gourmet Burgers<br />
Red Robin Gourmet Burgers ......................................565<br />
Restaurants Unlimited<br />
Restaurants Unlimited ................................................571<br />
Rock Bottom Restaurants, Inc.<br />
Old Chicago Restaurants............................................467<br />
Rock Bottom Brewery .................................................575<br />
Roly Poly<br />
Roly Poly ....................................................................577<br />
Round Table Pizza<br />
Round Table Pizza .....................................................582<br />
Roy Rogers Restaurants<br />
Roy Rogers Restaurants ............................................584<br />
Rubio's Fresh Mexican Grill<br />
Rubio's Fresh Mexican Grill........................................589<br />
Ruby Tuesday<br />
Ruby Tuesday ............................................................591<br />
Ruth's Chris Steak House<br />
Ruth's Chris Steak House...........................................595<br />
SONIC Drive-Ins<br />
SONIC Drive-Ins.........................................................631<br />
Sbarro<br />
Sbarro.........................................................................603<br />
Shari's Restaurants<br />
Shari's Restaurants ....................................................608<br />
Shells Seafood<br />
Shells Seafood ...........................................................610<br />
8<br />
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published.
Shoney's Inc.<br />
Shoney's .................................................................... 612<br />
Taco Bueno<br />
Taco Bueno ............................................................... 671<br />
Shula's Steak House<br />
Shula's Steak House.................................................. 614<br />
Taco John's<br />
Taco John's................................................................ 675<br />
Silver Diner<br />
Silver Diner ................................................................ 616<br />
Texas Roadhouse<br />
Texas Roadhouse...................................................... 684<br />
Sizzler<br />
Sizzler ........................................................................ 618<br />
Tim Hortons<br />
Tim Hortons ............................................................... 686<br />
Skyline Chili<br />
Skyline Chili ............................................................... 621<br />
Tony Roma's<br />
Tony Roma's.............................................................. 691<br />
Smith & Wollensky Restaurant Group<br />
Inc.<br />
Smith & Wollensky..................................................... 623<br />
Smoothie King<br />
Smoothie King ........................................................... 629<br />
Sonny's Real Pit BBQ<br />
Sonny's Real Pit BBQ ................................................ 635<br />
Tumbleweed Southwest Grill<br />
Tumbleweed Southwest Grill ..................................... 693<br />
Uno Chicago Grill<br />
Uno Chicago Grill....................................................... 695<br />
VICORP Restaurants Inc.<br />
Bakers Square ............................................................. 41<br />
Village Inn .................................................................. 699<br />
Souplantation & Sweet Tomatoes<br />
Souplantation & Sweet Tomatoes.............................. 637<br />
Villa Fresh Italian Kitchen<br />
Villa Fresh Italian Kitchen .......................................... 697<br />
Starbucks<br />
Starbucks................................................................... 639<br />
Waffle House<br />
Waffle House ............................................................. 702<br />
Steak n Shake<br />
Steak n Shake ........................................................... 653<br />
Wendy's International, Inc.<br />
Wendy's Old Fashioned Hamburgers ........................ 704<br />
Subway<br />
Subway ...................................................................... 656<br />
WesterN SizzliN<br />
WesterN SizzliN......................................................... 710<br />
9<br />
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published.
Whataburger<br />
Whataburger...............................................................712<br />
White Castle<br />
White Castle ...............................................................714<br />
Wingstop<br />
Wingstop.....................................................................718<br />
Yum! Brands, Inc.<br />
A&W Restaurants ...........................................................4<br />
KFC ............................................................................371<br />
Long John Silver's ......................................................400<br />
Pizza Hut ....................................................................527<br />
Taco Bell.....................................................................665<br />
Zaxby's<br />
Zaxby's .......................................................................720<br />
la Madeleine<br />
la Madeleine ...............................................................384<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
10
Appendix C<br />
Publicly-held Companies<br />
APPB ...... Applebee's Neighborhood Grill & Bar.......... 12<br />
AVDO...... Avado Brands, Inc....................................... 32<br />
BJRI........ BJ's Restaurant & Brewery ......................... 63<br />
BOBE...... Bob Evans................................................... 74<br />
BUCA...... Buca di Beppo............................................. 93<br />
BWLD ..... Buffalo Wild Wings Grill & Bar..................... 96<br />
BYBI........ Back Yard Burgers...................................... 34<br />
CAKE ...... Cheesecake Factory, The......................... 158<br />
CBOU ..... Caribou Coffee.......................................... 121<br />
CEC ........ Chuck E. Cheese's.................................... 176<br />
CHUX...... O'Charley's................................................ 464<br />
CMG ....... Chipotle Mexican Grill ............................... 172<br />
COSI....... Cosi........................................................... 199<br />
CPKI ....... California Pizza Kitchen ............................ 111<br />
DAB ........ Dave & Buster's ........................................ 222<br />
DAVE ...... Famous Dave's ......................................... 267<br />
DENN...... Denny's ..................................................... 227<br />
DPZ......... Domino's Pizza ......................................... 234<br />
FRN ........ Friendly's................................................... 293<br />
GRLL ...... Roadhouse Grill ........................................ 573<br />
IHP.......... IHOP ......................................................... 334<br />
JAX ......... J. Alexander's............................................ 347<br />
JBX ......... Jack in the Box.......................................... 349<br />
KKD ........ Krispy Kreme ............................................ 377<br />
LUB......... Luby's........................................................ 406<br />
MAXE...... Max & Erma's............................................ 415<br />
MRT........ Morton's The Steakhouse ......................... 451<br />
MSSR ..... McCormick & Schmick's............................ 422<br />
PIC.......... Piccadilly................................................... 523<br />
PNRA...... Panera Bread/Saint Louis Bread Co. ........ 496<br />
PZZA....... Papa John's .............................................. 503<br />
PZZI........ Pizza Inn ................................................... 532<br />
RI ............ Ruby Tuesday........................................... 591<br />
RRGB ..... Red Robin Gourmet Burgers..................... 565<br />
RUBO ..... Rubio's Fresh Mexican Grill ...................... 589<br />
SBUX ...... Starbucks .................................................. 639<br />
SHLL....... Shells Seafood.......................................... 610<br />
SNS ........ Steak n Shake........................................... 653<br />
SONC ..... SONIC Drive-Ins ....................................... 631<br />
TII............ Tim Hortons .............................................. 686<br />
TRY......... Arby's .......................................................... 18<br />
TXRH...... Texas Roadhouse..................................... 684<br />
WSZL...... WesterN SizzliN ........................................ 710<br />
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published.<br />
1
Appendix D<br />
Geographical by State<br />
Arizona<br />
Blimpie Subs & Salads................................................. 72<br />
Cold Stone Creamery ................................................ 190<br />
Great Steak & Potato Co., The .................................. 307<br />
P.F. Chang's China Bistro.......................................... 486<br />
Pei Wei Asian Diner ................................................... 515<br />
Peter Piper Pizza ....................................................... 521<br />
TacoTime................................................................... 678<br />
Arkansas<br />
Pizza Pro ................................................................... 535<br />
California<br />
Acapulco Mexican Restaurant and Cantina ................... 8<br />
Baja Fresh Mexican Grill.............................................. 38<br />
BJ's Restaurant & Brewery .......................................... 63<br />
Black Angus Steakhouse ............................................. 66<br />
Bubba Gump Shrimp Co.............................................. 91<br />
California Pizza Kitchen ............................................. 111<br />
Carl's Jr...................................................................... 127<br />
Carrows ..................................................................... 136<br />
Cheesecake Factory, The.......................................... 158<br />
Chevys Fresh Mex..................................................... 163<br />
Claim Jumper............................................................. 186<br />
Coco's Bakery Restaurant ......................................... 188<br />
Del Taco .................................................................... 224<br />
El Pollo Loco.............................................................. 258<br />
El Torito ..................................................................... 261<br />
Elephant Bar Restaurant............................................ 263<br />
ESPN Zone................................................................ 265<br />
Farmer Boys .............................................................. 270<br />
Fatburger ................................................................... 272<br />
Gloria Jean's Coffee .................................................. 301<br />
Houston's................................................................... 326<br />
Häagen-Dazs............................................................. 332<br />
IHOP.......................................................................... 334<br />
Il Fornaio.................................................................... 339<br />
In-N-Out Burger ......................................................... 341<br />
Islands Fine Burgers & Drinks ................................... 345<br />
Jack in the Box .......................................................... 349<br />
Jamba Juice............................................................... 354<br />
Johnny Rockets ......................................................... 367<br />
Mimi's Cafe ................................................................ 444<br />
Panda Express .......................................................... 494<br />
Pick Up Stix ............................................................... 525<br />
Round Table Pizza .................................................... 582<br />
Rubio's Fresh Mexican Grill ....................................... 589<br />
Sizzler ........................................................................ 618<br />
Souplantation & Sweet Tomatoes.............................. 637<br />
Taco Bell.................................................................... 665<br />
Tastee Freez.............................................................. 680<br />
Wienerschnitzel ......................................................... 716<br />
Canada<br />
Tim Hortons ............................................................... 686<br />
Colorado<br />
Bakers Square ............................................................. 41<br />
Black-eyed Pea............................................................ 68<br />
Boston Market.............................................................. 82<br />
Champps Entertainment, Inc. .................................... 140<br />
Chipotle Mexican Grill................................................ 172<br />
Einstein Bros. Bagels................................................. 252<br />
Noodles & Company.................................................. 462<br />
Old Chicago Restaurants........................................... 467<br />
Qdoba Mexican Grill .................................................. 550<br />
Quiznos Subs ............................................................ 553<br />
Red Robin Gourmet Burgers ..................................... 565<br />
Rock Bottom Brewery ................................................ 575<br />
Village Inn .................................................................. 699<br />
Connecticut<br />
Subway ...................................................................... 656<br />
DC<br />
Palm Restaurant ........................................................ 489<br />
Florida<br />
Ale House .................................................................... 10<br />
Bahama Breeze ........................................................... 36<br />
Beef O'Brady's ............................................................. 49<br />
Benihana...................................................................... 53<br />
Bonefish Grill ............................................................... 80<br />
Burger King................................................................ 102<br />
Capital Grille, The ...................................................... 116<br />
Carrabba's Italian Grill ............................................... 133<br />
Checkers Drive-In Restaurants.................................. 149<br />
Cheeburger Cheeburger ............................................ 154<br />
Cheeseburger in Paradise ......................................... 156<br />
Firehouse Subs.......................................................... 279<br />
1<br />
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.
Fleming's Prime Steakhouse & Wine Bar ...................284<br />
Hard Rock Cafe ..........................................................313<br />
Lee's Famous Recipe Chicken ...................................390<br />
LongHorn Steakhouse ................................................403<br />
Melting Pot..................................................................442<br />
Olive Garden ..............................................................473<br />
Outback Steakhouse ..................................................482<br />
Pollo Tropical..............................................................539<br />
Rally's Hamburgers ....................................................559<br />
Red Lobster ................................................................561<br />
Roadhouse Grill..........................................................573<br />
Roly Poly ....................................................................577<br />
Roy's Restaurants ......................................................586<br />
Ruth's Chris Steak House...........................................595<br />
Shells Seafood ...........................................................610<br />
Shula's Steak House ..................................................614<br />
Smokey Bones Barbeque & Grill ................................626<br />
Sonny's Real Pit BBQ.................................................635<br />
Georgia<br />
Arby's............................................................................18<br />
Atlanta Bread Company................................................25<br />
Avado Brands, Inc. .......................................................32<br />
Carvel Ice Cream........................................................138<br />
Chick-fil-A ...................................................................165<br />
Church's Chicken........................................................179<br />
Cinnabon ....................................................................184<br />
Don Pablo's ................................................................239<br />
Freshen's....................................................................291<br />
Hooters .......................................................................321<br />
Huddle House.............................................................328<br />
Moe's Southwest Grill .................................................448<br />
Mrs. Winner's Chicken & Biscuits ...............................458<br />
Popeyes Chicken & Biscuits .......................................543<br />
Schlotzsky's................................................................605<br />
Waffle House ..............................................................702<br />
Zaxby's .......................................................................720<br />
Illinois<br />
Cosi ............................................................................199<br />
Jimmy John's Gourmet Sandwich Shop .....................363<br />
McDonald's.................................................................425<br />
Morton's The Steakhouse...........................................451<br />
Portillo's Hot Dogs ......................................................546<br />
Potbelly Sandwich Works ...........................................548<br />
Indiana<br />
Steak n Shake ............................................................653<br />
Lone Star Steakhouse and Saloon .............................398<br />
Kentucky<br />
A&W Restaurants ...........................................................4<br />
Fazoli's .......................................................................275<br />
KFC ............................................................................371<br />
Long John Silver's ......................................................400<br />
Papa John's................................................................503<br />
Texas Roadhouse ......................................................684<br />
Tumbleweed Southwest Grill ......................................693<br />
Louisiana<br />
Copeland's of New Orleans ........................................194<br />
Piccadilly.....................................................................523<br />
Smoothie King ............................................................629<br />
Maine<br />
Ground Round Grill & Bar...........................................311<br />
Maryland<br />
Roy Rogers Restaurants ............................................584<br />
Silver Diner .................................................................616<br />
Massachusetts<br />
Au Bon Pain..................................................................27<br />
Baskin-Robbins ............................................................45<br />
Bertucci's ......................................................................59<br />
D'Angelo Grilled Sandwiches......................................214<br />
Dunkin' Donuts ...........................................................243<br />
Friendly's ....................................................................293<br />
Legal Sea Foods ........................................................392<br />
Papa Gino's Pizzeria ..................................................501<br />
Togo's Eatery/Dunkin' Deli..........................................689<br />
Uno Chicago Grill .......................................................695<br />
Michigan<br />
Big Boy .........................................................................61<br />
Domino's Pizza ...........................................................234<br />
Hungry Howie's Pizza & Subs ....................................330<br />
Jet's Pizza...................................................................361<br />
Little Caesars..............................................................394<br />
Kansas<br />
Applebee's Neighborhood Grill & Bar ...........................12<br />
Carlos O'Kelly's...........................................................131<br />
Fox and Hound English Pub & Grille ..........................287<br />
Houlihan's...................................................................324<br />
Minnesota<br />
Buca di Beppo ..............................................................93<br />
Buffalo Wild Wings Grill & Bar ......................................96<br />
Caribou Coffee ...........................................................121<br />
Dairy Queen ...............................................................216<br />
2<br />
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published.
Famous Dave's .......................................................... 267<br />
Fire Mountain............................................................. 277<br />
Green Mill Restaurant and Bar .................................. 309<br />
Old Country Buffet/HomeTown Buffet........................ 469<br />
Ryan's Grill, Buffet & Bakery...................................... 599<br />
Max & Erma's............................................................. 415<br />
Skyline Chili ............................................................... 621<br />
Wendy's Old Fashioned Hamburgers ........................ 704<br />
White Castle .............................................................. 714<br />
Mississippi<br />
McAlister's Deli .......................................................... 420<br />
Missouri<br />
Hardee's .................................................................... 316<br />
Panera Bread/Saint Louis Bread Co.......................... 496<br />
Pizzas of Eight ........................................................... 537<br />
Nebraska<br />
Godfather's Pizza....................................................... 303<br />
New Jersey<br />
Bugaboo Creek Steak House ...................................... 99<br />
Charlie Brown's Steakhouses .................................... 145<br />
Jersey Mike's Subs .................................................... 359<br />
Villa Fresh Italian Kitchen .......................................... 697<br />
New Mexico<br />
Blake's Lotaburger ....................................................... 70<br />
New York<br />
Nathan's Famous....................................................... 460<br />
Sbarro ........................................................................ 603<br />
Smith & Wollensky..................................................... 623<br />
North Carolina<br />
Bojangles' Famous Chicken 'N Biscuits ....................... 77<br />
Golden Corral ............................................................ 305<br />
K&W Cafeterias ......................................................... 369<br />
Krispy Kreme ............................................................. 377<br />
Ohio<br />
Bob Evans ................................................................... 74<br />
Bravo! Cucina Italiana.................................................. 86<br />
Charley's Grilled Subs ............................................... 143<br />
Country Pride............................................................. 206<br />
Damon's Grill ............................................................. 219<br />
Donatos Pizza............................................................ 241<br />
LaRosa's Pizzeria ...................................................... 388<br />
Oklahoma<br />
Braum's Ice Cream & Dairy Stores .............................. 84<br />
Mazzio's Italian Eatery ............................................... 418<br />
SONIC Drive-Ins ........................................................ 631<br />
Oregon<br />
McCormick & Schmick's............................................. 422<br />
McGrath's Fish House ............................................... 440<br />
Old Spaghetti Factory, The ........................................ 471<br />
Original Pancake House, The .................................... 480<br />
Shari's Restaurants.................................................... 608<br />
Pennsylvania<br />
Auntie Anne's............................................................... 30<br />
Eat'n Park .................................................................. 249<br />
Fox's Pizza Den ......................................................... 289<br />
South Carolina<br />
Denny's...................................................................... 227<br />
Tennessee<br />
99 Restaurants .............................................................. 1<br />
Back Yard Burgers....................................................... 34<br />
Barnhill's Buffet ............................................................ 43<br />
Captain D's Seafood Kitchen ..................................... 118<br />
Cracker Barrel Old Country Store .............................. 208<br />
J. Alexander's ............................................................ 347<br />
Krystal Company ....................................................... 382<br />
Logan's Roadhouse ................................................... 396<br />
Marie Callender's Restaurant & Bakery ..................... 412<br />
O'Charley's ................................................................ 464<br />
Perkins Restaurants & Bakery ................................... 518<br />
Ruby Tuesday............................................................ 591<br />
Shoney's .................................................................... 612<br />
Texas<br />
Abuelo's Mexican Food Embassy.................................. 6<br />
Bennigan's Grill & Tavern ............................................ 55<br />
Carino's Italian Grill.................................................... 125<br />
Chart House............................................................... 147<br />
Cheddar's Casual Cafe.............................................. 152<br />
Chili's Grill & Bar ........................................................ 168<br />
Chuck E. Cheese's .................................................... 176<br />
CiCi's Pizza................................................................ 182<br />
Corner Bakery............................................................ 196<br />
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©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.
Dave & Buster's ..........................................................222<br />
Dickey's Barbecue Pit.................................................232<br />
El Chico Cafe..............................................................256<br />
Fuddruckers................................................................297<br />
Furr's Family Dining....................................................299<br />
Iron Skillet...................................................................343<br />
Jason's Deli ................................................................357<br />
Joe's Crab Shack........................................................365<br />
la Madeleine ...............................................................384<br />
Landry's Seafood House ............................................386<br />
Luby's .........................................................................406<br />
Maggiano's .................................................................409<br />
Mr. Gatti's ...................................................................454<br />
On The Border Mexican Grill & Cantina......................477<br />
Pancho's Mexican Buffet ............................................492<br />
Pappadeaux Seafood Kitchen ....................................511<br />
Pappasito's Cantina....................................................513<br />
Pizza Hut ....................................................................527<br />
Pizza Inn.....................................................................532<br />
Ponderosa/Bonanza ...................................................541<br />
Rainforest Cafe...........................................................557<br />
Romano's Macaroni Grill ............................................579<br />
Saltgrass Steak House ...............................................601<br />
Steak and Ale .............................................................651<br />
T.G.I. Friday's .............................................................660<br />
Taco Bueno ................................................................671<br />
Taco Cabana ..............................................................673<br />
Tony Roma's...............................................................691<br />
Whataburger...............................................................712<br />
Wingstop.....................................................................718<br />
Utah<br />
Arctic Circle Restaurants ..............................................23<br />
Country Market Restaurant & Buffet, The...................204<br />
Mrs. Fields ..................................................................456<br />
TCBY..........................................................................682<br />
Vermont<br />
Ben & Jerry's ................................................................51<br />
Bruegger's Bagel Bakery ..............................................88<br />
Virginia<br />
Five Guys Famous Burgers & Fries............................282<br />
WesterN SizzliN..........................................................710<br />
Washington<br />
Papa Murphy's Take 'N' Bake Pizza ...........................509<br />
Restaurants Unlimited ................................................571<br />
Starbucks....................................................................639<br />
Wisconsin<br />
Country Kitchen ..........................................................202<br />
Culver's Frozen Custard .............................................211<br />
Wyoming<br />
Taco John's ................................................................675<br />
©Technomic Information Services 2007, CIS profiles may not be copied or distributed in any print or electronic format without a license or written consent.<br />
Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information<br />
published.<br />
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