1. business and industrial

October 31, 2014
Focus Foodservice Announces Newly Formed Alliance with Update International and
Johnson-Rose, Incorporated’s US and Canadian Operations
Centre Lane Partners, holding company of Focus Foodservice, has completed the acquisitions of
Update International and the US and Canadian operations of Johnson-Rose, Inc. The businesses
will become affiliates of Focus Foodservice and the combined operation will become the premier
supplier to the Foodservice industry in North America and globally. Both transactions are now
finalized and we are able to share the good news. For the better part of the last decade, Focus
Foodservice has been a leading supplier of Storage/Transportation, Bakeware, Beverage
Equipment and assorted Smallwares. Focus Foodservice offers unique and innovative solutions
that benefit foodservice operators throughout the U.S., Canada and internationally. Since 1979,
Update International has been known for providing high quality foodservice Smallwares and
Beverage Servers to a wide variety of clients. Throughout this time Update has grown, expanded
services and adapted to the changing environment of the foodservice industry. Johnson-Rose
Inc. was founded in Montreal, Canada in 1948. The US Operation was started in 1986 and
services all of the United States, Mexico, Central and South America, and other parts of the
world. Johnson-Rose Inc. is one of Canada's largest suppliers of foodservice Smallwares.
The combined volumes in Canada and the United States makes Johnson-Rose one of the leading
suppliers of foodservice Smallwares in North America. The new affiliation allows Focus
Foodservice, Update International and Johnson Rose the ability to further expand our ability to
service our customers by providing the scope of services and product offerings to all of our
clients to help them become more successful. – Source: Focus Foodservice.
Yelp Buys Restaurant-Kritik to Expand Its Presence In Germany
Yelp has boosted its presence in Europe after announcing the acquisition of Restaurant-Kritik, a
restaurant review service in Germany. Restaurant-Kritik claims to have over 330,000 reviews of
more than 94,000 restaurants across Germany. The US firm has not revealed how much it paid
for the Hamburg-based startup, but it says it will begin integrating content from the service into
its German site soon. Already, however, a notice at the bottom of restaurant-kritik.de explains
that the company is “a project of Yelp Ireland Ltd.” “The addition of Restaurant-Kritik content to
the Yelp family will see us further expand our depth of content in one of our core European
markets,” Mike Ghaffary, Yelp’s VP Business and Corporate Development, wrote on the
company blog. – Source: TechKrunch.
Planet Smoothie and Tasti D-Lite Announce SoCal Expansion Plans
Planet Smoothie is set to open two new Southern California stores, one at 530 Wilshire Ave. No.
107 in Santa Monica and the other in the Northridge Fashion Center. The Santa Monica location
will also house a Tasti D-Lite. Planet Smoothie and Tasti D-Lite plan to open dozens of cobranded locations in Southern California. "Southern California is a great market for smoothie
franchises, and will also be an incredible market for Tasti D-Lite," Planet Smoothie CEO Peter
Holt said in a company press release. "People are educated, have strong incomes and are always
on the lookout for places that allow them to enjoy great food that is also nutritionally excellent.
Planet Smoothie and Tasti both offer great-tasting items and careful attention to nutrition that
make them perfect options for customers." The owners of the new Santa Monica store -- Kanna
Sunkara, Ramu Sunkara and Laura Crane -- will be spearheading growth for the two brands in
Los Angeles County. "We're excited to bring premium brands here that are far better products
than what is currently available in the market," Kanna Sunkara said in the release. "Planet
Smoothie and Tasti D-Lite are not sugar bombs, which is how I'd describe some of the brands
that are currently here. We think customers will flock to better choices." The Sunkaras and Crane
are particularly interested in adding locations in Westlake Village, Los Feliz, Silverlake,
Pasadena, Burbank, Arcadia, downtown Los Angeles, Manhattan Beach, Huntington Beach,
Hermosa Beach, Palos Verdes and Anaheim. – Source: FastCasual.com.
Grillhouse by David Burke Opens in Illinois
James Beard Award winner and Bravo Top Chef Masters contestant Chef David Burke is pleased
to announce that after nearly a decade’s worth of success and accolades at David Burke’s
Primehouse in Chicago, his newest farm-to-table venture, Grillhouse by David Burke, is now
open at 1301 American Ln. in Schaumburg, Illinois. At the new 22,000-square-foot, 450-seat
grillhouse, guests can expect the same caliber of dining experience as his award-winning
downtown restaurant. “For this new concept, we have brought on the talented Chef Chris
Cubberley to help head up the kitchen with me,” Chef Burke says. “We’ve also installed a 4,500pound brick oven where we’ll be cooking flatbreads, whole fish, roasted chicken, and more.”
Grillhouse by David Burke is serving modern American fare with a farm-to-table focus,
continuing Chef Burke’s long reputation for sourcing and utilizing the highest quality ingredients
and preparing completely unique American dishes. The comprehensive menu starts off
with Shares, including meat and cheese boards and Margherita and sausage flatbreads. As
for Starters, Grillhouse by David Burke offers a variety of soups (Lobster Bisque & Farmer’s
Onion Soup), salads (Beet, Caesar, and Market), and other starters like Parfait of Tuna & Salmon
Tartare, Crab Cake Fritters, an Ocean Plate with oysters, shrimp and crab, and more. When it
comes to Mains, David Burke is serving a variety of ingredient-driven dishes including pastas
(Sausage Rigatoni), seafood (Grilled Yellowfin Tuna, Oven Roasted Whole Branzino), and of
course his Himalayan salt brick dry-aged steaks (for which he holds the U.S. patent for). The
restaurant is also offering seasonal-inspired sharable sides. The bar program, developed by bar
manager Connor Burke and beverage director Tim Sandow, is equally impressive with a strong
line-up of wine, local craft beers, and nearly 60 bottles of whiskey. The craft cocktails all pair
perfectly with the restaurant’s modern American cuisine and include signatures like the New Old
Fashioned, made with George Dickle Bourbon, bitters, stout, and cherry, and the Local 56, a nod
to the year Schaumburg became a city (1956), made with Deaths Door Gin, bubbles, and Violette
Liquor. The sprawling restaurant sets the mood for guests feasting on Chef Burke’s farm-to-table
dishes, with large photographs taken by local photographer Albert MacDonald of area farms and
farmers, signature salt brick finishes, and lush greenery adorning the walls and tables. In addition
to the expansive dining space, the restaurant also offers guests looking to host private events The
Loft at Grillhouse, a beautiful 11,000-square-foot dining space. The banquet space is dividable
for groups as small as 20 and can also host 150 seated or a cocktail party of 300. – Source:
fsrmagazine.com.
Chipotle's CEO Describes a Seismic Shift in American Consumers
Chipotle is the most successful company in the food industry right now. The burrito chain's
same-store sales soared by nearly 20% last quarter. Executives announced plans to keep
expanding around the globe. Chipotle is also taking market share from traditional fast-food
companies like McDonald's, which just reported that sales declined 3.3% in the US. Founder and
co-CEO Steve Ells says consumers turning away from fast-food companies enabled Chipotle's
success. "Over the last decade there has been a noticeable shift among consumers away from
traditional fast food and casual dining chains, to fast-casual restaurants as customers are looking
for better quality food, served in a convenient format," Ells said. Chipotle is known as a fastcasual restaurant, meaning that it doesn't offer full table service but promises higher-quality food
than that offered by fast-food chains. "The companies that have lost the most customers over the
last decade are traditional fast-food chains, while the biggest gains go to fast-casual restaurants,"
Ells said. Ells cited a Consumers Report survey that ranked Chipotle as the best fast-casual
restaurant. Many traditional fast-food chains ranked near the bottom, with consumers citing
"uninspiring food" as the primary reason. "Despite offering dollar menus and frequent discounts,
many of these chains also scored poorly in terms of value," Ells said. "The bottom-line customer
wants delicious food, served quickly and in interactive format, and they are increasingly
unwilling to compromise." Ells said that his chain also ranked highly among millennials and
teens, which bodes well for the chain's future. "They are more concerned with how food is raised
and prepared than previous generations and are willing to seek out and pay a little more for
something they recognize as better, better tasting, better for the environment, and better for their
wellbeing," he said. The success of fast-casual chains like Chipotle has led McDonald’s to
change its strategy to include more customizable options. The chain has also started a series of
videos to show how its American food is prepared. – Source: Business Insider, In.
McDonald's CEO Outlines Changes as Sales Slide
After posting yet another disappointing quarter, McDonald's CEO Don Thompson said the
company hasn't been keeping up with the times and that changes are in store for its
U.S. restaurants. Thompson said that starting in January McDonald's will "simplify" its menu to
make room for restaurants to offer options that are best-suited for their regions. To offer greater
customization, he also said the company planned to expand its "Create Your Taste" offering that
lets people pick the buns and toppings they want on burgers by tapping a touchscreen. The
program is currently being offered in Southern California, and McDonald's has said it will roll it
out nationally in Australia. "We haven't been changing at the same rate as our customers' eatingout expectations," Thompson conceded during a conference call outlining the changes. The
remarks came after McDonald's said sales at established locations fell 3.3 percent globally and in
the U.S. division, marking the fourth straight quarter of declines in its home market. Profit sank
30 percent. The changes come as McDonald's continues to struggle with myriad problems. One
of its biggest challenges in the U.S. is long-held perceptions around the freshness and quality of
its ingredients. The chain has been fighting to boost sales as people gravitate toward foods they
feel are more wholesome. As a result, people have been gravitating to places like Chipotle,
which markets its ingredients as being of superior quality. In fact, Chipotle's sales at established
locations surged 19.8 percent in the third quarter. Steve Ells, Chipotle's co-CEO, said the results
show people are realizing "there are better alternatives to traditional fast food" and that he
expects the trend to continue. Some analysts questioned whether the moves that McDonald's has
in store will be enough to fix its problems. Sara Senatore, a Bernstein restaurant analyst, noted
that the company efforts seem focused on marketing around its food, rather than
changing recipes. McDonald's, meanwhile, launched a social media campaign last week inviting
customers to ask questions about its food. It began with frank questions like, "Why doesn't your
food rot?" and "Is the McRib made from real pork?," showing just how bad some of the
perceptions about McDonald's food can be. Over in China, an undercover TV report this summer
showed one of its major suppliers repackaging meat that was alleged to be expired. The claim
has not been publicly confirmed by the supplier or the government. The plant stopped operations
and many of McDonald's restaurants in the country were left unable to sell burgers, chicken
nuggets and other items. The chain's reputation took a hit as well. In the division encompassing
Asia, sales at established stores sank 9.9 percent. McDonald's, which has more than 35,000
locations around the world, said it expects its challenges will continue into the current quarter,
with global sales down for October as well. – Source: Seattle/PI/The Associated Press.
GE Capital Expands Financing for Restaurant Industry
GE Capital, Franchise Finance announced that it has expanded its team of account executives to
focus on developing relationships with the next generation of restaurant operators nationwide. To
lead this initiative, Allen Johnson has been promoted to managing director of new relationship
development in the U.S. He oversees a team of account executives who are responsible for
establishing connections with operators who need financing beyond what may be available from
the Small Business Administration and local banks. “There’s tremendous potential among
entrepreneurial franchisees that are actively planning to grow, and we want to be available to
help them over the long term,” said Trey Brown, GEFF’s sales leader. “They can capitalize on
the benefits of working with a financial institution that has more than 30 years’ experience
serving this industry. I couldn’t be more excited about this team and the opportunity it represents
for our business and our industry.” In addition to working with a stable and financially secure
lender that brings a disciplined approach to the business, operators receive access to GEFF’s
proprietary industry research and cutting-edge digital tools such as SmartChart™, which helps
them manage and build their businesses by allowing comparisons of various metrics, such as cost
of goods sold (COGS) and labor, among others. Like the Chain Restaurant Industry Review, its
annual in-depth restaurant industry analysis, SmartChart is only available to GEFF customers.
“The U.S. economy continues to strengthen, and the public’s interest in dining away from home
shows no signs of abating,” said Todd S. Jones, senior managing director of brand management
at GEFF. “We’ve analyzed the current market dynamics and we’re excited to provide financing
to more operators.” Prior to his new role, Johnson was a vice president and account executive
responsible for originating new transactions in the western U.S. Prior to that, Johnson held roles
of increasing responsibility within GEFF. He joined the business in June 2001 as a risk
professional. – Source: GE Capital, Franchise Finance/GE Capital Americas.
Restaurant Operator J. Alexander's Files for IPO
J. Alexander's Holdings Inc., a casual-dining chain operator backed by Fidelity National
Financial Inc., filed with U.S. regulators on Tuesday for an initial public offering of its common
shares. The company operates the J. Alexander's and Stoney River Steakhouse and Grill chains
across 14 states in the United States, offering contemporary American cuisine. The Nashville,
Tennessee-based company listed Stephens Inc., KeyBanc Capital Markets Inc. and Stifel,
Nicolaus & Co among underwriters to the IPO. The IPO filing, which included a nominal
fundraising target of about $75 million, did not reveal how many shares the company planned to
sell or their expected price. The final size of the IPO could be different. The amount of money a
company says it plans to raise in its first IPO filings is used to calculate registration fees. The
company, whose competitors include Del Frisco's Grill, The Palm and Ruth's Chris Steak House,
intends to list its common stock on the New York Stock Exchange under the symbol "JAXH". J.
Alexander's will join the list of casual dining chains, including El Pollo Loco Holdings Inc. and
Zoe's Kitchen Inc., that have listed this year. Shares of El Pollo Loco and Zoe's Kitchen are
trading above their IPO price. – Source: Reuters.
Popeyes’ CEO Added to Franchise Association Board of Directors
The International Franchise Association has added four new members to its board of directors,
including Popeyes' CEO Cheryl A. Bachelder. They will assume their positions at the conclusion
of the 55th IFA Annual Convention in Las Vegas in February. In addition to Bachelder, the other
three members include: John C. Draper, president of restaurant operations of V&J Holding
Companies Inc. (which includes Pizza Hut, Coffee Beanery, Burger King, Häagen Dazs and
Auntie Anne's locations in six states). Richard Emmett, chief legal and human resources officer
of Dunkin' Brands. Matthew Patinkin, multi-unit, multi-brand franchisee (Auntie Anne's
Pretzels, Red Mango Frozen Dessert and Jamba Juice) and co-founder and owner of Double P
Corporation. "The levels of experience these four individuals bring to the board, which spans
across a broad range of industry sectors, will be a boon to our industry and IFA," IFA Chairman
Steve Joyce said in a news release. "Our efforts to preserve and promote the franchise business
model will benefit greatly due to these highly-respected individuals' expertise within the
industry.” – Source: FastCasual.com.
Denny's Promotes Three Executives
Denny’s Corp. has promoted three executives into key leadership positions, the company said.
The Spartanburg, S.C.-based family-dining operator named Christopher Bode chief operating
officer, John Dillon chief marketing officer and Jill Van Pelt chief people officer. “Chris, John
and Jill have all contributed to Denny’s success in a meaningful way,” John Miller, Denny’s
president and chief executive, said in a statement, adding that they had helped revitalize
“‘America’s Diner’ by leading key initiatives in our plan to drive improvements across our food,
service and atmosphere.” As chief operating officer, Bode will direct all of Denny's company and
franchise operations and services, the operator said. Bode has served as Denny's senior vice
president of operations since January 2013. The COO position had been unfilled since the
resignation of Robert Rodriguez in March 2012. As chief marketing officer, Dillon succeeds
Frances Allen, who resigned in September to become president of Jack in the Box Inc. Dillon,
who has been with Denny’s since 2007, most recently served as vice president of marketing. He
will take on an expanded marketing leadership role, the company said. Van Pelt was promoted to
the new position of chief people officer. She will continue to oversee all human resources
functions and maintain a role in internal communications and crisis management, the company
said. She has been with Denny’s since 2006, and previously served as vice president of human
resources. – Source: NRN.
Tony Roma's Executive Named CFO of the Year
Romacorp, Inc., parent company of Tony Roma’s, announced that the Dallas Business
Journal has named Kendall Helfenbein, an MBA and CPA, its 2014 CFO of the Year in the
restaurant category. Helfenbein, who has more than 30 years of finance experience, has been
with Romacorp, Inc. since May of 2012. “I am honored to be selected by the Dallas Business
Journal as the leading restaurant CFO in the Dallas area,” Helfenbein says. “The role I’ve held at
Tony Roma’s for the past two years is one that I am very grateful for, and I’m encouraged by the
company’s fast-paced environment and its talented team of executives. I look forward to a long
career with Romacorp, Inc. as we continue to grow our Tony Roma’s brand both domestically
and internationally.” Prior to his role at Romacorp, Inc., Helfenbein was a financial executive
and consultant. His experience includes 18 years as the CFO of a $150 million dollar group of
privately owned companies. “Kendall has significantly improved the impact and speed of
internal financial reporting in his short time at Romacorp, while also reorganizing and improving
the efficiency of the accounting and corporate administrative departments,” says Ken Myres,
president of Romacorp, Inc. Each year the Dallas Business Journal hosts a CFO of the Year
awards ceremony to recognize top North Texas financial leaders. – Source: fsrmagazine.com.
Corner Bakery Set to Open First Idaho Location
Corner Bakery Cafe will open its first Idaho location at the end of Oct. with the opening of its
new restaurant at 3680 East Fairview Avenue in Meridian on the south side of The Village at
Meridian retail center. On opening day, the first 100 guests through the doors at 6 a.m. will
receive a commemorative Corner Bakery Cafe travel mug with free daily coffee refills for one
year. Throughout the first month, Corner Bakery Cafe will also hold weekly drawings to award
four winners free grilled Panini for a year. Finally, the cafe will draw a winner during each of the
first four months of business to receive one free large Corner Classic catering order.The
restaurant is owned and operated by Ben Eramya of Feast Northwest LLC, a franchise group that
also owns four Corner Bakery Cafe locations in the San Diego market. Feast Northwest plans to
open another cafe in Boise near the Boise Towne Square Mall early next year. Feast Northwest
also plans to donate $5,000 to the Boys and Girls Club of Meridian. "We hope our contribution
to the Boys and Girls Club will mark the beginning of a continued relationship between the
Corner's Village cafe and the community," operating partner Shayne Stimpson said in a company
press release. "We're excited to bring Corner Bakery Cafe's fresh, ingredient-inspired food to
Meridian, and know it will soon become a local favorite for many years to come." – Source:
FastCasual.com.
Outback Steakhouse to Open Auburn, Massachusetts, Location
Outback Steakhouse will open the doors of its newest restaurant location in Auburn,
Massachusetts. To show its support of the local community, 50 percent of the restaurant's
opening day sales (up to $2,500) will benefit the Auburn High School Scholarship Program. The
new restaurant will serve lunch daily and will be the first in the area to feature a new "Modern
Australia" design both inside and out. "We love being a part of the Auburn community and are
excited to open a new restaurant with a totally new design for our guests to enjoy," says Brian
Coakley, Outback's local proprietor. – Source: fsrmagazine.com.
Sysco Looks to Divestitures to Nail Down US Foods Deal
Food distributor Sysco Corp., fighting to complete a merger with US Foods Inc., is attempting to
craft a package of potential asset sales weighty enough to convince U.S. antitrust regulators to
approve the deal. The proposed tie-up is seen as problematic because Sysco and US Foods are
the only companies with the geographic reach to offer nationwide contracts to deliver a wide
range of goods to customers ranging from hotel chains to fast food restaurants. Sysco and US
Foods, which is owned by private equity companies including KKR & Co., announced the $3.5
billion deal in December. The Federal Trade Commission, which can approve the deal or file a
lawsuit to stop it, remains concerned about the loss of the only national competitor to Sysco,
according to two sources with knowledge of the commission's viewpoint. Three big regional
players, Reinhart Foodservice, Performance Food Group and Gordon Food Service, have been
negotiating with Sysco to buy certain divested assets. Sysco is the biggest food distributor and
US Foods is No. 2. Performance, Reinhart and Gordon are major regional players, but each is
concentrated on the eastern United States, leaving a wide swath of the west less covered. None of
them serves Idaho, Montana, North Dakota, South Dakota, Washington state, Utah or Wyoming,
according to the companies' web sites. The FTC is waiting to see what kind of asset sales Sysco
and US Foods can put together to overcome "serious concerns," said one person familiar with the
regulators' thinking. Three others familiar with the FTC's thinking said no decision had been
made on whether a lawsuit aimed at stopping the deal would be filed. All four asked not to be
named since they did not have authorization to speak on the record. An official for one of the
handful of big, nationwide customers said his company generally preferred national contracts but
could work with regional contracts if needed. "The FTC, ultimately what they're focusing on is
the impact on the consumer and I think one of the main things that they're looking at is
alternatives on a national level," said the official, who asked that he and his company not be
named because of business sensitivities. The official said that his company had been offered a
chance to oppose the proposed deal but had not done so. Sysco, optimistic that the deal will get
done, in August announced a transition team made up of eight Sysco executives and two from
US Foods. The company is in regular talks with the FTC, said Sysco spokesman Charley Wilson,
adding, "We still believe that these discussions will lead to completion of the merger in the
fourth quarter of this year." Sysco has said the combined company would be able to maintain
fewer warehouses and run fuller trucks, thus driving down costs for customers. – Source:
Reuters.
Wingstop Preparing $100M IPO
Wingstop Restaurants Inc. is considering a possible public offering to raise around $100 million,
according to a Wall Street Journal report. A spokeswoman for Richardson, Texas-based
Wingstop said in an email that, “The company does not comment on market rumors.” Wingstop
is owned by private-equity firm Roark Capital Group, based in Atlanta. The Wall Street Journal
cited sources that said 670-unit Wingstop “has met with underwriting banks in recent weeks to
discuss a potential IPO that could raise around $100 million, and could value the company at
roughly $500 million.” In September, Wingstop hired a new chief finnacial officer, Michael
Mravle, who had prior public-company experience as U.S. chief financial officer for Tampa,
Fla.-based Bloomin’ Brands Inc., parent to Outback Steakhouse, Carrabba’s Italian Grill,
Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Roy’s. Wingstop also moved its
communications functions from a regional agency to a New York firm with extensive IPO
experience. Restaurants have played a sizable role in this year’s IPOs, with Plano, Texas-based
Zoe’s Kitchen Inc. going public in April, Papa Murphy’s Holdings Inc. making its debut in May
and Dallas-based Dave & Buster’s Entertainment Inc. going public earlier this month. Wingstop
ranked No. 3 in this year’s Nation’s Restaurant News top 10 growth chains, with $540.2 million
in U.S. systemwide sales, an increase of 19.8 percent from 2012. In 2013, Wingstop opened 74
new restaurants. Estimated sales per domestic unit in the NRN census were $962,000, rising 9.1
percent from 2012. Wingstop ended 2013 with 10 consecutive years of same-store sales growth.
In its May 1 franchise disclosure document, the company said average unit volumes this year,
based on systemwide sales last year, would be about $974,025 on a unit investment targeted at
$400,000. Wingstop was founded in 1994 and purchased by Roark Capital in 2010. It has
restaurants in the United States, as well as Indonesia, Mexico, the Philippines, Russia and
Singapore, and locations being developed in the United Arab Emirates. – Source: NRN.
Popeyes Eyes 30 New Stores in Boston Area
Bostonians will soon have a lot more places to buy southern fried chicken — or at least the fastfood version. Popeyes Louisiana Kitchen is looking for franchisees to open 15 to 20 new stores
in the Boston area in five years and 30 total over the next decade. The Atlanta company currently
serves its spicy chicken, jambalaya, red beans and rice at eight fast-food restaurants in the state.
“Boston is a prime market for further expansion of the Popeyes footprint,” said Greg Vojnovic,
Popeyes chief development officer, in a statement. The company said it is “poised to rapidly
expand domestically” with sales at a 10-year high. Founded in 1972, Popeyes claims to be the
world’s second largest quick-service chicken concept by locations with 2,262 restaurants
worldwide. – Source: The Boston Globe.
Restaurant Association’s EVP Named a 'Top Lobbyist'
Scott DeFife, EVP of Policy and Government Affairs for the National Restaurant Association,
has once again, been named a 2014 top lobbyist by "The Hill" newspaper. This is the sixth time
DeFife has been selected by the publication for inclusion on its annual Top Lobbyists list.
"Under Scott's leadership, the National Restaurant Association has continued to advance the
policy priorities of the restaurant industry on Capitol Hill and nationwide," NRA CEO Dawn
Sweeney said in a news release. "Scott has led every policy front with continued success. His
work on navigating complex issues like health care, immigration and tax policies before
Congress and the Administration has benefited millions of restaurateurs and restaurant
employees across the country. We are proud of the work he and the NRA team do to promote our
industry of opportunity both on the Hill and in every community." Under DeFife's leadership, the
NRA has been tackling ACA issues, including the full-time employee definition, large employer
definition and compliance issues such as auto-enrollment and employer reporting. The NRA is
also part of the Employers for Flexibility in Health Care Coalition, as well as the recently
launched "More Time for Full Time" initiative. The NRA also helped introduce legislation that
would clearly define seasonal employment under the law. Other topics headed by DeFife
include: Advocating for bipartisan tax policies, including the Work Opportunities Tax Credit;
Supporting legislation that establishes a permanent 15-year tax depreciation schedule for
improvements and new construction that will benefit restaurateurs looking to advance their
businesses; Making immigration reform a top priority for the restaurant industry and creating a
clear path to legalization for undocumented workers, establishing national use of the E-Verify
employment verification system, and increasing border security that does not impede legal travel
and tourism; DeFife is also leading the NRA's sustainability and environmental efforts under its
Conserve platform to help restaurateurs implement best practices. Additionally, the NRA has
announced new roles for three members of its communications and media relations team. Katie
Laning Niebaum has been named VP, Communications and Media Relations, leading the
association's media relations arm and communication strategies covering public policy; research
initiatives; products, services and events; and overall industry image. Niebaum joined the
association in 2011 after serving as communications director for US Senator Blanche Lincoln.
Christin Fernandez has been named director, Media Relations and Public Affairs. Prior to joining
the association in 2013, Fernandez was VP of the Washington-based communications, public
affairs and lobbying consulting firm HDMK. Rachel Salabes has been named manager, Media
Relations and Kids LiveWell Program, after previously serving as a media relations specialist for
the association. – Source: PizzaMarketplace.com/The NRA.
Veggie Grill Names Steve Heeley COO
Veggie Grill has named Steve Heeley, formerly chief executive of Earl of Sandwich, it first chief
operating officer. Heeley will help support Santa Monica, Calif.-based Veggie Grill’s continued
growth beyond the West Coast. The fast-casual, meat-free concept has 26 locations, mostly in
California, but also in Washington and Oregon. Heeley was most recently president and CEO of
Orlando, Fla.-based Earl of Sandwich, where he helped that chain reach 30-percent annualized
growth worldwide over the past two years. Prior to that, he held executive positions at Au Bon
Pain, The Coffee Bean & Tea Leaf and Baja Fresh Mexican Grill, the latter of which Greg
Dollarhyde, Veggie Grill’s chief executive, once led. “I’m excited for Steve’s addition to our
Veggie Grill team, as he is a successful operator who will lead and support our continued growth
trajectory,” said Dollarhyde in a statement. “Steve and I have built a company together before
and I know him to be a solid leader with high integrity and deep, relevant experience.” – Source:
Veggie Grill.
Fishbowl Appoints Dev Ganesan CEO
Fishbowl, a restaurant industry leader in digital marketing, named Dev Ganesan as CEO. A
seasoned technology executive with a track record of success building companies in the digital,
mobile, customer relationship management (CRM), and analytics industries, Ganesan will be
responsible for driving Fishbowl’s next phase of growth with its big data and analytics
solutions. Former CEO Scott Shaw has taken on the new role of chief innovation officer. “On
the heels of our successful launch of Loyalty Analytics and the growing industry demand for
data-driven marketing, the time was right to introduce a new CEO, and Dev is the perfect fit,”
says Shaw. “Dev’s entrepreneurial drive and track record of growing scalable technology and
services businesses, for both private and publically-held companies, is impressive. Given his
exceptional record of operational and financial success, we’ve no doubt that Dev will accelerate
Fishbowl’s growth.” Most recently, Ganesan served as CEO of Aptara, where he led its
expansion from a technology vendor to a digital and mobile solutions partner that led the
publishing industry’s transition from print to the digital age. Under Dev’s leadership, Aptara
doubled its EBITDA, tripled its value in the last three years, and was recently acquired. “I am
thrilled to be joining Fishbowl at such a pivotal time in the restaurant and digital marketing
industries,” Ganesan says. “Fishbowl’s Loyalty Analytics and guest acquisition solutions are
giving restaurants business insights they’ve never had − actionable information that’s increasing
sales. I look forward to taking the company to its next level of financial success as the restaurant
industry’s trusted technology partner.” Prior to Aptara, Ganesan was CEO of Intelliworks and
TRADOS, both venture-backed software companies. Ganesan was also the executive vice
president and chief financial officer of Advanced Communications Systems (Nasdaq: ACSC, a
professional services firm) where he led seven acquisitions and the company’s IPO. He currently
serves on the Board of Directors of Xurmo Technologies, a Big Data Analytics company, and C2
Technologies, an eLearning company. Ganesan received the SmartCEO Future 50 award in 2014
and 2013, and was recognized as a Washington Tech Titan in 2013. – Source: fsrmagazine.com.
Arby's Creates Chief People Officer Position
Arby's Restaurant Group has promoted Melissa Strait, SVP, Human Resources and Leadership
Development, to chief people officer, a newly created position reporting to CEO Paul Brown.
According to a news release, Strait will be responsible for leading the strategy, development and
execution of key organizational effectiveness and talent management programs across the
company. She has been with Arby's since 1984, when she started as a team member working in
an Arby's restaurant in her home state of Michigan. "Melissa has been an instrumental advisor
during my first year and a half as CEO," Brown said in the release. "She's a great ambassador of
our people and culture and this new position is a direct reflection of the importance we place on
our team members. The fact that she began as an entry level restaurant team member and worked
hard to rise to the top of the organization is a testament to the career opportunities we at Arby's
strive to provide." Strait graduated from Hope College with a Bachelor's of Arts degree in
psychology. In 1995, she became director of training and then her career quickly progressed as
she worked for both Arby's franchisees and eventually the franchisor. Strait was named VP of
Training and Development in 2000 before later becoming SVP of Human Resources and
Leadership Development. Strait will assume the role of CPO effective immediately. – Source:
QSRWeb.com.
Will Tim Hortons help Burger King's Breakfast?
Could Tim Hortons Inc. help Burger King wake up in the mornings? There are plenty of reasons
the Miami chain wants to buy the Canadian coffee concept. Taxes might be one (or maybe not).
International development is certainly another. And it could give Tim Hortons a lift in the U.S.,
where it has historically struggled. But it could also give Burger King a lift in what is quickly
becoming the most important meal of the day in the restaurant industry: Breakfast. That's the
daypart where Burger King is weakest. It is also, not coincidentally, the daypart where Tim
Hortons thrives. "Tim Hortons is breakfast," said Douglas Fisher, president of FHG
International, a foodservice consulting firm based in Toronto. We spoke with Fisher for an
upcoming piece in NRN on the potential impact of the deal on Tim Hortons, but he also provided
excellent insight on its potential for Burger King. "It could be a great matchup." Make no
mistake, breakfast is important. It is the only daypart actively adding customers right now.
According to NDP Group, traffic at restaurants in the morning increased 3 percent last year, even
while restaurant traffic fell for the industry overall. Burger King's nemesis, McDonald's Corp., is
a behemoth in the morning and actually added breakfast sales in the third quarter even while its
own sales fell. Taco Bell added breakfast this year. There are a growing number of family dining
chains that specialize in breakfast and shut their doors at 2 p.m. Indeed, Dunkin' Brands this
morning cited this mounting competition in the mornings as it predicted that sales will likely
miss expectations this year. Fisher speculated that adding Tim Hortons would enable Burger
King to start an in-store coffee shop business, similar to McDonald's McCafe. Tim Hortons'
manufacturing and distribution network enables the company to put a store just about anywhere.
"It's next to impossible to think that Burger King isn't going to do a McCafe-type program,"
Fisher said. Such a program, he said, would add a substantial amount to franchisees' bottom
lines, if it's done right. That would be a boon for Tim Hortons, too. Burger King has more than
7,400 locations in the U.S. and Canada, and about 14,000 worldwide. That's much bigger than
Tim Hortons' 4,500 locations. "If Burger King switches from Seattle's Best Coffee to Tim
Hortons, Tim Hortons would triple, almost quadruple its coffee production overnight," Fisher
said. To be sure, Tim Hortons hasn't exactly thrived in the U.S., where it is more of a regional
brand and has half of the unit volumes that it enjoys in Canada. So there's no guarantee that
changing the coffee brand in Burger King restaurants to Tim Hortons would lure many
customers, especially in the South and West where the name is not well known. And, as Dunkin
CEO Nigel Travis said this morning, breakfast is really competitive right now. Still, at the very
least, Tim Hortons would show Burger King how to operate in the morning daypart, something
the burger chain has consistently struggled to do. – Source: NRN.
Forever Yogurt Parent Buys Stake in Falafill
Chicago-based restaurant company Forever Brands LLC has acquired a 50 percent stake in
Mediterranean restaurant chain Falafill with the intent to grow the franchise by at least 10
locations in the Chicago area in 2015, the companies said. With the deal, Forever Brands —
parent company of the 30-store Forever Yogurt chain — hopes to package its frozen yogurt
concept with Falafill stores and market the combination to franchisees. Falafill, a fast-casual
concept that opened its first restaurant in Lakeview in 2009, had locations in the Loop and in
Oak Park. Only the Lakeview restaurant remains open. Falafill also plans to open a Detroit
restaurant in November and plans to launch in Madison, Wisconsin, adjacent to a Forever Yogurt
store, by year-end. Under terms of the agreement, Forever Brands will take a 50 percent equity
stake in Falafill in exchange for financing, certain corporate services and access to its franchising
platform. Falafill founder Maher Chebaro will join Forever Brands as executive chef. Forever
Brands said it plans to open 10 Falafill stores in 2015, an expansion focused mostly on the
Chicago area and the Midwest. “We have so much room to grow. Our brand is much bigger than
our location,” Mr. Chebaro said. “I see (Falafill) as much more of a franchise opportunity, and
that's one of the big reasons we partnered with (Forever Brands).” Forever launched its first
frozen yogurt store in Wicker Park in 2010 and began franchising in March 2012, CEO Mandy
Calara said. Mr. Calara started working with Mr. Chebaro earlier this year to develop recipes for
Forever Brands' new bubble tea and bao concept, Bee & Tea, which opened in Wicker Park last
summer. Now with Falafill in the fold, Mr. Calara hopes to package the three concepts in cobranded stores, similar to the Baskin-Robbins-Dunkin' Donuts mashups created by Dunkin'
Brands Group Inc. and the Pizza Hut/Taco Bell partnerships pioneered by Yum Brands Inc.
“Pairing the brands makes a lot of sense because they're all simple to execute and easy to
replicate for a franchisee,” Mr. Calara said. “I'd expect that Chicagoland would be where we
pursue the most growth, but we've already gotten a lot of interest from all over the world.”
Forever Brands previously laid out plans for an aggressive expansion but thus far, they haven't
panned out. Forever Yogurt aborted two new stores earlier this year after a spate of lawsuits
alleged unpaid rent. – Source: Crain’s Chicago Business.
Darden Names Gene Lee Interim CEO
Darden Restaurants Inc. has named president and chief operating officer Gene Lee the
company’s interim chief executive, replacing outgoing CEO Clarence Otis, effective
immediately. Lee has long been mentioned as a potential successor to Clarence Otis as chief
executive of Darden, who was set to step down in January of next year. The shift in leadership at
Orlando, Fla.-based Darden is the first move under a new board of directors — one put in place
last Friday when shareholders made a rare, wholesale to the board at the company’s annual
meeting. Darden certified those results today. That rout in the boardroom was led by Jeffrey
Smith, chief executive, managing member and chief investment officer of Starboard Value L.P.,
the activist investor that owns about 8.8 percent of Darden stock. Smith is now Darden’s nonexecutive chairman. “The new board and I have appreciated the energy and attitude from within
the organization. Gene has proven to be an outstanding leader at Darden, and we are excited to
work closely with him as our interim chief executive officer,” Smith said in a statement. “The
Board’s Search Committee will conduct a full search for the next CEO of Darden, which will
include both internal and external candidates." Lee’s ascension to the top seat brings an end to
the decade-long reign of Clarence Otis, who started at Darden in 1995 and became the chief
executive nine years later. Otis announced plans to step down in July — on the same day that the
company finalized its sale of Red Lobster, which is widely viewed as the catalyst for the proxy
fight that led to the full board turnover. The succession plan originally called for Otis to remain
in the top spot until the end of the year, or until a successor was named. But during the proxy
fight, Lee had increasingly become the public face of Darden. In a statement, Lee said he is
“thrilled with the opportunity” and “our teams are energized and looking with optimism at the
opportunities ahead.” Lee came to Darden in 2007 as part of its acquisition of then Longhorn
Steakhouse parent Rare Hospitality International Inc., where he was president and COO. Lee
then led Darden’s Specialty Restaurant Group for the past six years. That division includes the
company’s growth brands, including Eddie V’s, Yard House, Bahama Breeze, Seasons 52 and
The Capital Grille. – Source: NRN
BurgerFi Will Open in CNN Center, Add Breakfast Menu
BurgerFi announced the grand opening of its CNN Center location in downtown Atlanta,
opening Nov. 1. This location will also be the first to launch a breakfast menu for the brand. This
grand opening marks the 59th BurgerFi to open across the nation and the second non-traditional
storefront. BurgerFi will be one of 16 food retail stores in the CNN Center. "We're very proud of
this milestone and excited to have our second non-traditional location in the world headquarters
of CNN, one of the largest worldwide news providers," said CEO Corey Winograd in a company
press release. "BurgerFi is continuing to grow at an accelerated pace through the support of our
loyal guests and great operators. We look forward to providing the same great food and
experience here in Atlanta that our guests have come to love and expect across the country."
Among the items offered on the breakfast menu, BurgerFi will include its Breakfast All Day
Burger, which features American cheese, hickory bacon, maple syrup, fried egg, hashbrowns,
grilled diced onions and ketchup. – Source: FastCasual.com.
Thank you for reading The Global Foodservice E-newsletter from American Recruiters!
Craig Wilson
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