December 15, 2014
Ottawa Approves Tim Hortons-Burger King Deal
The federal government is approving Burger King Worldwide Inc.’s $12.5-billion takeover of Tim Hortons Inc., but
has made the U.S. fast-food giant agree to list of conditions that include maintaining Canadian jobs and reserving
half of the Tim Hortons brand's board seats for Canadians. Industry Minister James Moore announced that Burger
King’s proposed merger – publicly unveiled in August – had been approved under the Investment Canada Act,
which mandates that foreign takeovers of large Canadian companies must produce a “net benefit” to Canada. The
conditions attached to the takeover appear aimed at ensuring that Canada reaps the benefits of being the new home
to a worldwide fast-food company. It’s a takeover deal to which the federal government has repeatedly pointed as
evidence that its lower corporate tax rates are attracting businesses. “The result of this transaction is this new global
company, with sales of more than $23-billion annually, which will now be based in Canada,” Mr. Moore said in his
statement. “Our government is pleased to see companies like Burger King investing in Canada’s economy and
looking to benefit from our low taxes and open markets.” In his statement, Mr. Moore said that Burger King had
agreed to several commitments, including “to work with Tim Hortons franchisees to maintain 100 per cent of
existing employment levels at Tim Hortons franchises across Canada.” Burger King, owned by Brazilian private
equity fund 3G, has been well-known in recent years for slashing its own costs and staff, and some observers had
speculated that Tim Hortons could face similar treatment. Mr. Moore also said Burger King had agreed not to
change the rent and royalty structure for its Canadian franchisees for five years. The burger chain has also agreed to
“significantly” accelerate its plans to expand Tim Hortons in the U.S. and around the world and to maintain the
doughnut chain as a “distinct brand without any co-branding locations in Canada or the United States.” Burger King
has committed to setting up the new merged company’s headquarters in Oakville, Ont., where the Tim Hortons head
office is now, and “to maintain significant employment levels” there as well as to list the new company on the
Toronto Stock Exchange. The board of the new company's Tim Hortons subsidiary will have at least 50 per cent
Canadian directors, Mr. Moore said. In August, the two companies had both said the new merged entity would be
headquartered in Canada. The move, characterized as a “tax inversion,” would make it possible for the new
company to bring overseas profits back home without having to pay U.S. taxes on them. In a commitment that
echoed company comments in August, Mr. Moore said Thursday that the new company will also maintain “100 per
cent of Tim Hortons’ current charitable work and involvement in communities across Canada,” which presumably
includes its sponsorship of children’s hockey programs. – Source: The Globe and Mail, Toronto, Canada.
Fuddruckers Opens First Unit in South America
Fuddruckers opened its first restaurant in South America in Santiago, Chile. Houston-based parent Luby’s Inc.,
which also owns Cheeseburger in Paradise and the Luby’s cafeteria brand, said Tuesday that the 3,500-square-foot
Fuddruckers unit was opened by new Chilean franchisee SRTC, which has agreed to open nine more locations. “We
are excited to continue the global growth of the Fuddruckers brand through partnerships with homegrown operators
like SRTC, who have established themselves as leaders in the field,” Luby’s chief operating officer Peter Tropoli
said in statement. Fuddruckers has development agreements elsewhere in Latin America, including southern
Mexico, Panama, the Caribbean and Puerto Rico, the company has said. Chile-based SRTC also operates Ruby
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Tuesday’s units, which it first franchised in 1999. The company has six brands and 700 employees. The Chilean
franchisee located its first Fuddruckers, with 140 seats, in the upscale Las Condes area of Santiago. Fuddruckers
said the menu includes classic burgers, as well as specialty offerings such as an Avocado Cheese Burger and Cheese
Arugula Burger. Luby’s has cobranded with Fuddruckers in the U.S. at least five locations. The combined units
outperform sales tallied at the standalone brands, Luby’s chief financial officer K. Scott Gray said in a July earnings
call with analysts. The new cobranded restaurants averaged $92,000 in weekly sales during the third quarter,
compared with the weekly averages of $51,000 at Luby’s and $32,000 at Fuddruckers units. On Nov. 10, Luby’s
reported a loss of $1.4 million, or 5 cents per share, in the fourth quarter, compared with a $429,000 profit, or 2
cents per share, the previous year. Revenue rose slightly, to $123.6 million, from $123.3 million the previous year.
Same-store sales rose 0.4 percent at Luby’s Cafeterias in the fourth quarter and fell 4.6 percent at Fuddruckers, the
company reported. For the full year, same-store sales increased 1.4 percent at the cafeterias and decreased 3.5
percent at Fuddruckers. Luby’s owns and operates 94 cafeterias, 71 Fuddruckers restaurants, eight Cheeseburger in
Paradise units and one Bob Luby's Seafood Grill. The company franchises an additional 110 Fuddruckers locations
in the United States, Puerto Rico, Canada, Mexico, Italy and the Dominican Republic. – Source: NRN.
Food Trends to Watch in 2015
Based on analysis of its annual What’s Hot culinary forecast over time, the National Restaurant Association has
identified the following as trends to watch on menus in 2015: Waste Not, Want Not: Environmental sustainability
remains among the hottest menu trends. As with most maturing trends, sub-trends emerge over time; in 2015, food
waste reduction and management is at the forefront of restaurant operations. Composting, recycling and donating are
all tactics of food waste strategies tying into both sustainability and social responsibility. In addition, food costs are
once again on the rise and back on operators’ list of top challenges, spurring restaurants to take a closer look at
minimizing waste and surplus as a cost-management tool. Our House: As the local sourcing trend continues at full
speed in 2015, so does the hyper-local sub-trend. Beyond restaurant gardens, hyper-local is extending more fully
into house-made, farm-branded and artisan items. From ice cream to cheese, pickles to bacon, lemonade to beer,
restaurants are producing their own signature menu items from scratch. In a Pickle: Borrowing terminology from
social media, pickles are the Throwback Thursday of food trends. Common preparation methods for millennia,
pickling and fermenting are making a comeback big time – but with a modern twist. Restaurants are exploring
house-made pickles, ethnic flavors and specialty vinegars, small-batch producers with less traditional vegetable
varieties, and fermented flavor profiles in a variety of dishes. Going (More) Global: An evolving trend for the past
decades, ethnic cuisine continues its inroads into mainstream menus. As American palates become more
sophisticated and adventurous, so do restaurant offerings. Micro-trending in this category is fusion cuisines, as well
as authentic and regional, underscoring the breadth and depth of flavors being explored. Also, ethnic ingredients,
including cheeses, flour and condiments, are increasingly finding their way into non-ethnic dishes. Specific dishes,
such as ramen, ethnic street-food and kids’ entrees are also gaining momentum. Mini Gourmet: Children’s menus
are drawing more attention from chefs and restaurant operators. Gone are the days when kids’ menus were nothing
but hot dogs and things shaped like cartoon characters and dinosaurs. This is the era of gourmet kids’ dishes adapted
from adult menu items with more adventurous flavor profiles than traditional children’s options. Growing in parallel
are healthy versions of those gourmet kids’ items, featuring whole grains, vegetables, oven-baked items and entrée
salads. Shooting Menu Stars: As some items heat up in the menu trends environment, others are losing steam. The
meteoric rise of hybrid desserts (looking at you, croissant-donut) is beginning to take a downward trajectory. And
while still among the top trends, the momentum of gluten-free cuisine is slowing down. Similarly, the trendiness of
Greek yogurt is decelerating. Only time will tell if these items will become perennial favorites or yesterday’s news.
– Source: The National Restaurant Association.
McAlister’s Deli Names Carin Stutz President
McAlister’s Deli has named Carin Stutz president, the company announced. The Alpharetta, Ga.-based limitedservice sandwich chain said Stutz assumed the role Nov. 17, succeeding Frank Paci, who left in September to
become president and chief executive of Lakewood, Colo.-based Einstein Noah Restaurant Group Inc. Stutz was
most recently president and chief executive of Deerfield, Ill.-based Così Inc. Prior to Così, Stutz served as president
of global business development for Dallas-based Brinker International Inc., parent to the Chili’s Bar & Grill and
Maggiano’s Little Italy brands, and executive vice president of operations for Applebee’s Neighborhood Grill &
Bar. Earlier, she served as a division vice president for Wendy’s International. “Carin’s vast experience in building
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great teams, creating brand differentiation, driving operations and delivering results make her an ideal candidate for
the position,” said Steve DeSutter, chief executive of McAlister’s parent Focus Brands Inc. McAlister’s ranked No.
88 in the most recent NRN News Top 100 survey, with an estimated $459 million in U.S. systemwide sales in 2013,
an increase from $419 million in the prior-year period. McAlister’s has more than 330 restaurants in 24 states. The
company has corporate offices in Alpharetta, Ga., and Ridgeland, Miss. Focus Brands, which also owns Auntie
Anne’s Pretzels, Carvel, Cinnabon, Moe’s Southwest Grill and Schlotzsky’s, is a division of private-equity firm
Roark Capital Group. Both companies are based in Atlanta. – Source: NRN.
Denny's Donates Nearly $1 Million to No Kid Hungry
Denny's is taking a bite out of childhood hunger after donating more than $944,000 as part of the diner's fourth
annual fundraising campaign for Share Our Strength's No Kid Hungry, a national movement aimed at ending
childhood hunger by connecting kids with healthy food where they live, learn, and play. Since fundraising efforts for
No Kid Hungry began at Denny's in 2011, the brand has donated a total of $2.3 million to the cause. "We are
incredibly grateful for the overwhelming generosity and support of our guests and dedicated employees as we
continue the fight to help end childhood hunger in the U.S.," says Denny's CEO John Miller. "Each year we strive to
make an even bigger impact with our fundraising efforts, and this year's donation is a true testament to the passion
and commitment we have for this important campaign and in helping make a difference, one meal at a time."
Fundraising took place Aug. 15 through Oct. 19, during which time guests were able to purchase $9 worth of
redeemable Denny's coupons for just $3, with every dollar donated helping feed a child up to 10 healthy
meals. Guests also had the option to make an online monetary donation of their choice, receiving $5 off their next
$20 meal at Denny's, or could purchase one of three exclusive No Kid Hungry campaign t-shirts—designed by
Denny's team members—for $10 each, with a portion of all sales going directly to No Kid Hungry. No Kid Hungry's
restaurant fundraiser ran the full month of September, No Kid Hungry month, but in a bid to increase its impact on
the campaign this year, Denny's began fundraising efforts a full two weeks ahead of most restaurant partners. The
diner also extended the campaign for an additional two weeks in response to the continued donations from guests,
both online and in-restaurant. "The generosity of Denny's and Denny's customers is always inspiring," says Billy
Shore, founder and CEO of Share Our Strength. "This year, they raised the bar not just in their promotions but in
their enthusiasm. That commitment to connect more kids to the food they need clearly made an impact in their
fundraising." -- Source: fsrmagazine.com.
In-N-Out, T.G.I. Friday's Top 'Customer-Centric' Restaurant Rankings
In-N-Out Burger and T.G.I. Friday's are the nation's most "customer-centric" fast food and casual restaurants,
according to DunnhumbyUSA. The company has released top 10 lists based on its second Customer Centricity
Index (CCI) on food service retailers, designed to measure how well retailers are responding to the needs and
preferences of their guests based on feedback from actual customers. Dunnhumby surveyed customers to weigh their
perceptions of restaurants against how they rank them on menu assortment, price, overall experience, feedback,
promotions, loyalty and communications. Those factors were identified as the "seven pillars" of the customer
centricity that drive the long-term customer satisfaction and loyalty that are correlated with long-term revenue
growth, according to the company. Restaurants' escalating challenges include pricing pressures, the need to achieve
the right mix of healthy and indulgent offerings, increasing labor and food costs, and an unrelenting stream of new
formats and competitors, points out Peter Miles-Prouten, SVP, consumer markets, DunnhumbyUSA. Good food and
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service, while critical, are no longer enough to differentiate a restaurant brand: Restaurants need to deliver on
complex combinations of factors sought by customers and connect with them through a personalized customer
experience that spans marketing, item selection and pricing strategies, he says. Top 10 Fast Food Chains, Insights:
Following In-N-Out Burger, the CCI leaders among quick-serve restaurants are Chick-fil-A, Culver's, Subway,
Whataburger, Sonic, Arby's, Popeye's, Hardee's and McDonald's. Given that pricing is a core factor in survival in
the fast-food industry, it's not surprising that all QSR chains studied scored relatively high on price and promotion.
They also score high on assortment. It's the areas in which QSRs tend not to perform that have the most potential for
establishing differentiation, points out Dunnhumby. In general, fast food chains rank low in loyalty, although the
researchers note that the Chick-fil-A-list and MySubway programs "seem to have created some differentiation in the
minds of their customers." The category clearly needs to break from traditional operating methods to focus on
engagement and personalizing the experience, they stress. Feedback and communication scores also tend to be low
in the fast food segment, making it particularly critical for these chains to ramp up their use of mobile, social media
and direct feedback to listen to customers and connect on a one-to-one basis, the report points out. A closer look at
how the scores of the top four-ranked fast-food chains compare with those of the top 10 overall demonstrates the
complexity of how various factors combine to create customers' overall perception of a restaurant brand.
"Connection" factors like experience and feedback are sometimes as important or even outweigh core fast-food
attributes like pricing. Compared with the other CCI-leading brands, In-N-Out scores high on price (though low on
promotions) and above-average on assortment (it mostly offers burgers, but the assortment reflects what its
customers want). It's also slightly above average on feedback. But its biggest differentiator is its unusually high
experience score. Its loyalty score falls in the high average range among the top 10. Chick-fil-A, second overall,
ranks only average in pricing and promotions, but excels in experience, feedback and loyalty. The chain creates "a
restaurant-type environment in a fast-food location," in no small part through its staff and service, says the report.
No. 3 Culver's is also ranked average on pricing and a just slightly above average on promotions, but excels at
communication, experience and feedback and also has a high loyalty ranking. No. 4 Subway excels on loyalty,
promotions, pricing, communication and assortment, and its experience and feedback scores are in the high average
range among the top 10. Top 10 Casual Restaurants, Insights: Following T.G.I. Friday's, the CCI leaders among
casual dining restaurants are Texas Roadhouse, LongHorn Steakhouse, Bonefish Grill, Red Robin, Carrabba's Italian
Grill, Olive Garden, Outback, Chili's and Bob Evans. In this sector, food and assortment are particularly key to
customer satisfaction. Balancing old favorites with new innovations on the menu is a constant struggle, but
restaurants like LongHorn Steakhouse and Carrabba's Italian Grill differentiate by keeping customers excited about
the menu, note the researchers. But experience matters as much as the food. For example, Texas Roadhouse and
Bonefish Grill customers cite the ambience and pleasurable dining experience as reasons for their loyalty. T.G.I.
Friday’s earned the No. 1 spot in part by providing value and rewarding customers for their loyalty in an industry
where loyalty is still emerging. While its assortment score is high, its major differentiators are loyalty and
promotions. The chain's "Give Me More Stripes" program rewards customers who dine there more often with
rewards that are truly of value to them, the report notes. For the research, Dunnhumby conducted online surveys
with more than 40,000 customers (based on trips to a given retailer within the past three months) of more than 400
retailers, including 100 within the food service category. Respondents were asked to rate retailers on more than 40
customer-centric attributes based on the "seven pillars" of customer centricity. Retailer scores are based on a
weighted average of those results that link the various factors of customer centricity to loyalty and likelihood to
recommend. – Source: MediaPost.
Taco Bell Wants to Make 'Mexican' the Next Global Fast Food
Taco Bell, which started as a small restaurant in Los Angeles County in 1962, has grown to more than 6,000
outlets—of which roughly 95 percent are in the U.S. Now the chain plans to take what it calls "Mexican-inspired"
cuisine to the rest of the world, with plans to add 1,300 international locations by the end of 2023. That averages out
to about one new Taco Bell location outside the U.S. every two to three days for the next nine years. The chain has
already spread its Crunchwraps and Fritos-stuffed beef burritos across the country, but as McDonald's results over
the past year have shown, the domestic fast-food industry is struggling. Even with the launch of breakfast, Taco
Bell's same-store sales managed to increase only 3 percent last quarter. The chain has franchises in 26 countries, but
combined, they account for a mere 250 restaurants. Taco Bell's new plan would dramatically expand its international
footprint to 1,550 restaurants with franchises starting in the U.K., Korea, Chile, and India, where it already has a
number of stores, and then to Poland, Japan, Thailand, and Peru. Melissa Lora, the president of Taco Bell
International, says these markets were selected for having a growing consumer class and at least some familiarity
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with Mexican food. They're also markets that owner Yum Brands—which also own Pizza Hut and KFC—already
operates in. It’s not clear, though, whether an American-Mexican food mashup will catch on as the next global fast
food—especially because Taco Bell has tried and failed at overseas expansion before. In the late 1980s, it tried to
launch in the U.K. but closed all locations by the mid-1990s. It also failed to take off in Japan after opening in 1988.
And Chipotle Mexican Grill, which has enjoyed phenomenal success in the U.S., initially found burritos to be a
tough sell to locals in the U.K. Unlike other ubiquitous global cuisines, such as Chinese and Italian food, Mexican
cuisine hasn't spread alongside immigration. According to the Institute for Mexican Abroad, a Mexican government
agency, the U.S. accounts for nearly 98 percent of the 11.9 million Mexicans living abroad. There are other
Mexican-style chains, such as the U.K.'s 70-outlet restaurant Chiquito, but Mexican food remains a niche market.
According to Darren Tristano, executive vice president at restaurant research firm Technomic, Taco Bell might now
stand a chance: Other chains have built some momentum for Taco Bell to expand, and Mexican food "is
transitioning to a global cuisine," he said, as international consumers seek more portable and inexpensive foods. Just
don't expect the same old cuisine overseas. Much like other chains, Taco Bell will make local adjustments to its
menu in an effort to cater to regional tastes—an endeavor they've already started by serving up bulgogi beef tacos
and burritos in Korea. – Source: Bloomberg/Businesweek.
Another Broken Egg Opens Fifth Atlanta Area Restaurant
Double R Restaurant Group announced the grand opening of Another Broken Egg Cafe (ABEC) in John’s Creek,
Georgia, 30097. Serving from 7 A.M. through 2 P.M. seven days a week, this upscale 5,500 square-foot southern
inspired breakfast, lunch, and weekend brunch restaurant will seat 190 indoors with an additional 36 seats on the
outdoor patio. Those interested in a preview of ABEC’s fifth Atlanta area location can dine to support two local
nonprofits prior to the official grand opening, Johns Creek United Methodist Church and North Fulton Community
Charities. There is no charge for the public to attend these separate fundraising events, and donations can be made
via cash, check or credit card and will be accepted for the featured nonprofits, each with its own special date. On
Dec. 12 from 9 A.M. to 12 P.M., guests support Johns Creek United Methodist Church, a mainstream Protestant
church located in the Johns Creek Technology Center in northern Fulton County. On Dec. 13th from 9 A.M. to 1
P.M., guests support North Fulton Community Charities, which is dedicated to preventing homelessness in the
region, and assists with basic needs such as food, clothing, and emergencies. The menu features fresh, nutritious
southern-inspired dishes. There are six varieties of eggs benedict, 11 gourmet omelette choices, a signature Bananas
Foster over Belgian waffles, French toast, sweet potato pancakes, southern crabstack, biscuit beignets, as well as
handcrafted burgers, specialty sandwiches, and fresh salads. ABEC menu prices range on average from $8 to $15
and for breakfast cocktails the Mimosa and house specialty Bloody Mary are priced at $5.99 each. ABEC’s Healthy
Side menu is also available at this location. ABEC mug collectors will look forward to finding a cluster of pine trees
motif represented on the hand-thrown stoneware used for coffee service and hot beverages. Each ABEC location has
its own distinctive symbol on the American made design, which is produced in various colors and available for
purchase at the restaurant as well. – Source: fsrmagazine.com.
What’s Cooking at Starbucks. Coffee Chain Adding Wine and Beer in 2,000 U.S. Stores Over the Next Five
Years
Bacon-wrapped dates, truffle macaroni and cheese and a glass of Chianti have the makings of a fine-dining meal.
And soon, more customers will be able to enjoy these items at Starbucks. Over the next five years, Seattle-based
Starbucks Coffee Co. is expanding its evening menu of small plates, wine and beer in up to a fourth of its coffee
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shops in the United States. The roll-out is part of strategic plans to improve food offerings and increase traffic across
day parts. Starbucks expects to double its food sales through 2019 and deliver an incremental $2 billion in the
United States. “Food has delivered 2% comp growth in fiscal 2014,” said Cliff Burrows, group president, U.S.,
Americas and Teavana, during the company’s Biennial Investor Day on Dec. 4. “It also gives us the confidence that
we can innovate in other day parts and that we can really grow those day parts.” Recognizing a demand for heartier,
handheld breakfast items, Starbucks this year added four sandwiches to its morning menu, including a slow-roasted
ham and Swiss cheese on a croissant bun, vegetable and fontiago cheese on a ciabatta bun, egg and cheddar on
multigrain toast, and reduced-fat turkey bacon with egg whites and reduced-fat white cheddar on an organic wheat
English muffin. “Owning breakfast, owning that early morning is still really important for us,” Mr. Burrows said.
“The biggest opportunity is still lying with breakfast sandwiches and to convert existing beverage-only customers in
our stores in the morning peak to buy our food. And in the last quarter of fiscal 2014, we saw breakfast sandwiches
grow by 30%.” But lunch represents an even bigger opportunity for Starbucks. At the end of June, the chain debuted
a grilled cheese sandwich and a turkey pesto panini, which contributed to 14% year-over-year sales growth in the
lunch platform in 2014. “But we really have a very, very small share of the lunch business today, and we estimate
that at about $95 billion in our sector and we’ve got less than 2% share,” Mr. Burrows said. “Now we’re going to
continue to up-level our offer. We’re going to introduce proven winners, and we’re going to take a really disciplined
approach so that we limit and minimize the disruption for our store partners and for our customers.” Another
strategic priority for Starbucks is the underutilized evening day part. In select markets where Starbucks’ evening
program has been implemented, stores have posted a sales lift of mid to high teens during the day part. Starbucks
expects to expand the menu to about 20% to 25% of U.S. stores, or 2,000 units, over the next five years, delivering
an incremental $1 billion in sales. “It gives us a chance to extend that third place, creating this new occasion, this
incremental visit where customers can come, relax, connect with friends or be alone in a safe, comfortable and
sophisticated environment,” Mr. Burrows said. “And evenings for us is our offering to customers, helps customers
find that casual place to relax over coffee, tea, savory foods and wine.” Innovation at Starbucks evolves from
consumer insights with co-creation by baristas and customers, company executives said. A product may be
developed for testing in as little as six months. Adding La Boulange bakery products to the menu beginning in 2013
unlocked an opportunity for the chain to reengineer, reformulate and improve the quality of its sandwiches at
breakfast and beyond. “Our improvement in quality of ingredients, the way we bake it, we’re getting levels of
performance we’ve never seen, 30% in quarter-four lift,” Mr. Burrows said. “So, I think we’ve given ourselves
legitimacy. We’re now putting products into that warmed sandwich area, which lead us nicely into lunch, and with
some pretty simple innovation around lunchtime sandwiches we’ve seen a great reaction. “We’re building it slowly,
slowly, and we’re giving people breadth, depth but most of all confidence that it will be available and be a quality
product.” Just how quality are Starbucks new food offerings? “(It’s) a bit of a joke with my colleagues because I’m
the guy who’s eaten Starbucks food for breakfast and lunch for 13 years since the day I joined here,” Mr. Burrows
said. “I can assure you I enjoy it far more today than I did in the early days.” – Source: FoodBusinessNews.net
China Boom: 544 New Hotels With 164,400 Rooms in Pipeline
China rules. Citizens of the Middle Kingdom are world champions in traveling, with the number of Chinese tourists
traveling to other countries doubling over the past five years. But tourism within the country is also booming. The
turnover of the hotel industry has increased by over nine percent in recent years and is now, according to current
surveys, at $USD 47.4 billion. According to TopHotelProjects, there are currently 544 first class and luxury hotels
with 164,400 rooms in the pipeline. Overview of new hotel building projects in China by brand: Aloft (Starwood
Hotels & Resorts) – 6 hotel construction projects; Angsana (Banyan Tree) – 7; Ascott Residences (The Ascott) – 10;
Banyan Tree – 15; Conrad (Hilton Worldwide) – 6; Dusit/Dusit Thani – 12; Edition (Marriott) – 3; Fairmont – 9;
Four Seasons – 3; Grand Hyatt – 5; Hilton – 11; Hotel Indigo (IHG) – 4 Hualuxe (IHG/Hualuxe) – 18 Hyatt
Regency – 8; InterContinental (IHG) – 9; Jumeirah – 9; JW Marriott – 7; Kempinski – 2; Langham Place – 4; Le
Méridien (Starwood Hotels) – 9; Mandarin Oriental – 4; Marco Polo – 3; Mövenpick Hotels – 2; New World Hotels
– 6; Park Hyatt – 4 Pentahotel – 4; Pullman (Accor) – 6; Radisson/Radisson Red/Radisson Plaza/Radisson Blu – 18
Raffles – 2; Regal Hotels – 10; Regent Hotels – 2; Renaissance (Marriott) – 5; Ritz Carlton (Marriott) – 6;
Rosewood – 2;Sanya (Marriott) – 2;Shangri-La – 13; Sheraton (Starwood Hotels) – 36; Sofitel (Accor) – 7; Solis
(Capella) – 3; Somerset (The Ascott) – 13; St. Regis (Starwood Hotels) – 6; Steigenberger – 5; Swissotel (FHRI) –
5; Taj – 2; The Chedi – 2; Westin (Starwood Hotels) – 6; W Hotels (Starwood Hotels) – 8; Waldorf Astoria (Hilton)
– 3; Wyndham – 11. Most of the newest hotel buildings – by number of rooms – are arising in regional cities such as
Changsha, Zhengzhou, Haikou, Sanya and Chengdu as the largest metropolises are becoming saturated with hotels -
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most of them are in Shanghai (51,900), followed by Beijing (39,400) and Hong Kong (39,300). – Source: Top Hotel
Projects.
Arooga's to Expand to Chicago and Arizona
Arooga's Grille House & Sports Bar, the Harrisburg, Pennsylvania-based casual restaurant and bar with nine
locations in Central Pennsylvania, announced it has entered into a multi-unit franchise agreement with WingDoctor
LLC., a company owned by Dr. Frantz Muse and Didier Chérubin, to build a minimum of three locations by 2018,
beginning in Chicago as early as summer of 2015 and in the Phoenix/Scottsdale, Arizona, area by 2017. "This is an
exciting time for Arooga's Franchise expansion. We couldn't be more pleased to announce this partnership with Dr.
Muse and Mr. Chérubin, who immediately recognized what makes Arooga's special," says Keith Swade, director of
franchise development for Arooga's. "We have a blueprint to take our world-class brand to the next level, and we are
excited to introduce Arooga's to the Windy City and Arizona markets." Arooga's announced that Baum Realty
Group will begin its search for the next Arooga's location in Chicago this week. "We researched and explored what
seemed like hundreds of opportunities, and felt the best fit for us was Arooga's," Dr. Muse says. "We found the
experience to be exceptional, a family-oriented environment with a menu focused on fresh, quality ingredients and
great selection of draft beers and with over a hundred TVs, always the best seat in the house for sports." Chérubin
adds, "We are thrilled to make Chicago and Arizona the newest members of Arooga's nation. This really is the
beginning of a dream come true." Arooga's was selected as America's Next Top Restaurant Franchise, beating more
than 250 entrants from 36 states in a program co-sponsored by Sysco Foods and The Franchise Edge in a nationwide
search to find an independent restaurant to become the next great restaurant franchise. "Arooga's comes from
humble beginnings, but we knew from the start that we were on to something exceptional and unique that would one
day go nationwide," says Gary Huether, Jr., president and co-founder of Arooga's. "We are truly excited about
bringing Arooga's to Chicago. It is one of my favorite cities and has such a great tradition of great food and great
sports. I look forward to seeing our guests' reactions when we open the doors next summer and we show them what
a great sports bar and grill is all about." Arooga's recently celebrated its sixth anniversary and opened its ninth
Central Pennsylvania location, in Shippensburg, Pennsylvania in September, and plans to open its tenth corporate
location in Lancaster, Pennsylvania, in February 2015. Arooga's also broke ground in July on the first of 15 planned
restaurants over the next five years in New England. The first of those locations will open adjacent to the Mohegan
Sun Resort and Casino in Connecticut in March 2015, and will be the premiere sports bar in America. The New
England development is the result of a multi-unit franchise agreement with The Mohegan Tribe of Connecticut,
which has two additional locations under development for 2015. – Source: fsrmagazine.com
Corner Bakery Café Goes Big in Big Sky Country with 5-Unit Deal
Corner Bakery Café will enter the Montana market thanks to a five-unit deal with franchise partner Anderson
Management Group, led by multi-restaurant operator Brad Anderson and operating partner Brian Yates. Corner
Bakery Café is the group's 33rd franchise partner. Anderson Management Group also owns seven Buffalo Wild
Wings in Montana. "As seasoned, multiunit operators with a history of success in the franchising industry, Brad
Anderson and his team at Anderson Management Group exemplify the ideal partner we look for when we expand
into new markets," said Gregg Koffler, vice president of franchise sales for Corner Bakery Café, in a company press
release. "With Brad's extensive experience as an entrepreneur in Montana, coupled with the void in the region for
high-quality, fast casual dining, we know that Brad's market understanding will drive excitement and anticipation
for the brand as we enter the state of Montana in 2015." Corner Bakery Café now has 70 franchise locations
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currently open and more than 50 in development, with commitments for more than 345 in the pipeline. The brand
hopes to double its footprint by 2017. – Source: FastCasual.com
Dunkin' Donuts Adds Two Colorado Franchise Groups
Dunkin' Donuts has signed multiunit development agreements with two franchise groups in Colorado. They include:
New franchisee Brian "Gib" Long is the brand's first franchisee in the Western Slope of Colorado, with plans to
develop two restaurants. The first is expected to open in 2015. New franchisees George Hart and Mark Waldman
plan to develop two restaurants in Pueblo, Colorado. The duo's first restaurant is planned to open near I-25 and
HWY 50 in early 2015 and the second location by 2016. Currently, there are 13 Dunkin' Donuts restaurants located
throughout Colorado and the company is seeking franchisees for Grand Junction, Glenwood Springs, Montrose and
Durango. – Source: QSRWeb.com.
Project Pie Names Industry Veteran Peter Wright to VP of Franchise Development
Project Pie, the fast-growing franchise known for its “everyday artisan pizza custom built by you,” has named
former McAlister’s Deli executive Peter Wright as its Vice President of Franchise Development. Wright joins the
leadership team tasked with driving continued franchise growth and sales for the cutting-edge pizza brand. The
addition of Wright brings more than 15 years of foodservice experience to Project Pie, bolstering the brand’s stature
among pizza franchises nationwide. As Vice President of Franchise Development, Wright will spearhead growth in
new markets, support existing franchisees and identify new franchise partners who fit with the unique vision of the
Project Pie brand. “Project Pie is a wildly unique and innovative concept that’s really been designed for constant
evolution,” said Wright. “It’s an exciting time to join the Project Pie team and I look forward to contributing to the
growth of a dynamic brand that is already differentiating itself in this space.” Most recently, Wright served as Vice
President of Franchise Development at McAlister’s Deli, where he was responsible for new franchise recruitment
and new market development. Prior to that, Wright worked with several other leading national brands such as Panera
Bread and Starbucks. “The national and international growth our badass brand is experiencing calls for a badass
leadership team,” said James Markham, CEO and Founder of Project Pie. “Peter brings valuable industry expertise
and experience growing a brand – qualities franchisees look for and a killer combination that will allow Project Pie
to operate at full throttle.” Project Pie recently added the UK and Ireland to its international portfolio, which
includes Manila, Philippines, where there are currently eight locations. The group will also develop restaurants in
England, Scotland, Wales and Ireland over the next 10 years, in addition to significant franchise and corporate
growth in the U.S. – Source: Project Pie.
Burger King Forms j.v. to Expand in Europe
Burger King Worldwide, Inc., the second-largest fast-food hamburger chain in the world, is expanding its global
presence by establishing Burger King SEE S.A. The new joint venture with BK SEE will look to expand the Burger
King brand in Italy, Poland, Greece and Romania. Burger King said the joint venture has signed a long-term master
franchise and exclusive development agreement, which includes sub-franchise rights for Italy, Poland, Greece and
Romania. While Burger King currently operates in Italy, Poland and Romania, the joint venture’s plans include
aggressive development of Burger King restaurants across Southern and Eastern Europe and the creation of more
than 10,000 new job opportunities within the first five to seven years of the venture. “By partnering with BK SEE
and its c.e.o., Leo Leon, who has been a part of the Burger King family for more than 18 years, we plan to
aggressively expand the Burger King brand and business in these key markets and are excited to bring the brand to a
new market — Greece,” said José Cil, president Europe, Middle East and Africa, Burger King Worldwide. “We
have very ambitious plans in Southern and Eastern Europe. In BK SEE, we believe that we have found the perfect
partner to meet and exceed these goals and add significant value to the Burger King system.” Mr. Leon said the joint
venture’s plans for Southern and Eastern Europe are “ambitious.” “The Burger King brand, one of the world’s most
popular and iconic brands, is perfectly poised to build on its current strength in these markets and rapidly expand its
presence,” he said. “We are eager to partner with Burger King Europe to grow share in these markets by focusing on
delivering exceptional guest service and great-tasting food.” In November 2013, Burger King established a joint
venture with Groupe Olivier Bertrand and private equity firm Naxicap Partners to develop and expand the Burger
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King brand’s presence in France. Burger King operates in approximately 14,000 locations serving more than 11
million guests daily in 100 countries and territories worldwide. – Source: FoodBusinessNews.net.
Jessica Biel Is Almost Ready to Open Her Organic Restaurant for Children
This world is full of Soho Houses and Ritz Carltons, country clubs and Chateau Marmonts: exclusive places for rich
people to go and let their hair down because after a long day of limitless power and no consequences, sometimes
you just need a drink. But up until now, that basic human right — the right for a rich person to just #chill and feel
#blessed sometimes — has been denied to our most precious of rich citizens, our future: rich children. Well, thank
goodness for Jessica Biel, because she's here to save the day. Biel has long been planning to open an organic
restaurant exclusively catering to the Apple Martins and the Suri Cruises of the world, and now it appears her dream
is nearly a reality. The blog Toddrickallenrecently spotted an application for ownership change posted on a
storefront on Melrose Avenue in West Hollywood announcing the arrival of Au Fudge. It will be an organic, kidfriendly restaurant that caters to the Hollywood elite. As New York magazine put it, “Soho House for Kids."
Imagine all the wonders that will take place here. North West will nibble on kale or ramps or space carrots or
whatever is trendy in 2030 as her date, Prince George, talks about hunting pheasant. Finally there will be a home for
all the Banjos and Leafs and Pilot Inspektors of the world. Somewhere for Willow Smith to not only whip her hair
back and forth, but to really let it down. When can we expect Au Fudge to open its gilded doors? Well according to
the Jessica Biel fansite Jessica Biel Central, spring 2015 is the target date for the grand opening, just in time for
customer number one: Biel and her husband Justin Timberlake's first child, who's expected be born sometime next
year. – Source: Yahoo.
First Watch Acquires Fast-Casual Bread & Company
Purchase of concept marks new territory for full-service breakfast chain. Earlier this month, First Watch bought
Bread & Company, a two-unit concept based in Nashville, Tenn. That may seem small — First Watch will have 148
units by the end of the year — but it’s no less significant for the breakfast-and-lunch chain. Bread & Company is a
fast-casual concept, presenting full-service First Watch with a host of possibilities, not just for Bread & Company’s
two units, but for the concept as a whole. “The lucky part about Bread & Company is it has a different service
model,” First Watch CEO Ken Pendery said. “First Watch is a full-service concept. And we’ve always thought of
ourselves as a pretty fast delivery model. The one thing Bread & Company offers is we can have some form of fastcasual component to it.” That component and other aspects have yet to be designed. But the concept could
ultimately give First Watch some insight into service speed. It could also provide the basis for a combined service
model with elements from full service and fast casual. And some of the things the company learns at those two units
could be applied systemwide. For now, Pendery said the two-unit brand would operate under the Bread & Company
brand as a traditional fast-casual concept. “The great part about being able to pick up a brand that’s been successful
with a service model or a specific menu item or a beverage program is we’re looking for something we can learn
from,” he said. The purchase of Bread & Company isn’t the only acquisition for First Watch over the past couple of
years. Earlier this year, First Watch bought The Good Egg, an Arizona-based breakfast chain that gave the company
20 locations in Arizona. In 2012, First Watch bought two J. Christopher’s locations. The acquisitions have
supplemented First Watch’s robust new unit development. Pendery said the company expects to complete the year
with 10 new units, and expects to add 15 locations next year. “It’s been a busy couple of years,” Pendery said. “But
when you’re growing, it’s always more fun. They’re nice problems to have.” The previous acquisitions, however,
were of full-service concepts similar to First Watch. The Good Egg locations remain under that brand, and will
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likely remain so, Pendery said. The company is launching a new “Urban Farm” reimaging in its system, and The
Good Egg will have the same remodel, but with a different brand name. “It has the history of a 30-year-old
company,” Pendery said. “We don’t want to shock the customer with a rebrand.” Pendery acknowledged that the
primary goal of buying Bread & Company was to get its real estate. The chain was founded in 1992 as an artisan
bakery serving breads, rolls, pastries and coffee, and had just 15 seats. In 1995, the chain expanded to include salads
and sandwiches. It built a following and had as many as four locations. Recently, the brand “just lost a little luster,”
Pendery said, but still had loyal core customers. The company had two remaining locations in good sites. “We were
really after that location,” he said. “In some instances, some acquisitions are as much real estate driven and location
driven as for the brand itself.” The company is reconstructing one of the two locations and plans to keep the brand
intact, at least for now. “We have the option to rebrand,” Pendery said. “We’re in no rush to rebrand until we get
close to the customer. We’re not afraid to operate a different brand. It’s possible it will become a First Watch, if not
likely.” While the brand has a different service model, that model “is not hard,” Pendery said. But the brand serves
food similar to First Watch, only in a fast-casual format, like breakfast omelets and waffles. “They do things we do,”
Pendery said. “We think we can work with that breakfast component in fast casual and pick up elements we could
use in some parts with First Watch going forward.” This doesn’t appear to be First Watch’s last acquisition. Pendery
said this week that the company could continue to make acquisitions if and when opportunities come available.
“We’ll have organic growth and franchise growth and the occasional acquisition,” he said. – Source: NRN.
Burger King Surprised Apartment Hunters with One Whopper of a Kitchen Upgrade
If you're apartment hunting for a three bedroom/two bath/one Burger King, this might be the spot for you. Spanish
agency La Despensa equipped a tasty pad in downtown Madrid with a BK kitchen and menu counter for a stunt
touting the arrival of the chain's home delivery service. You've got familiar brand signage, colorful meal displays
and even some guy named Michael, dressed in a BK uniform, ready to take your order. Because the agency listed
the unit on local real-estate websites for roughly half its market value, "we had around 800 calls in five days asking
to see the place," La Despensa creative director Luis Monroy tells AdFreak. Hidden cameras recorded the reactions
of prospective tenants, who seem amused and pretty psyched about the experience. "It took around three days to
assemble the restaurant after weeks of searching for the perfect place," Monroy says. "Can you imagine what it's like
to carry up all the kitchen tools, digital screens for the menu board … and the bar of 300 kilos to the third floor with
no elevator?" Members of the marketing team, production company and agency all pitched in to help with the heavy
lifting. Of course, authentic BK cuisine was served. "It is a much more complete experience with a Whopper in your
hands," Monroy says. Soon after it finished the video, La Despensa (which translates to "The Pantry"—perfect,
right?), the apartment, which really had been on the market, was snapped up, "unfortunately without the restaurant,
and at a higher price." This well-done prank manages to stay on-point and satisfy without seeming overcooked. And
that's kind of rare in this category. – Source: Ad Week.
CiCi’s Pizza Names Jim Lebs CFO
CiCi's Pizza has named industry veteran Jim Lebs chief financial officer, the company announced. Lebs succeeds
Forbes Anderson, who left Coppell, Texas-based CiCi’s Enterprises LP in October, a spokeswoman said. Lebs most
recently was vice president for supply chain at Oklahoma City-based Sonic Drive-In. Prior to Sonic, Lebs was a
leader at Jack in the Box Inc. for nearly eight years, where he served in a variety of roles that included division vice
president of accounting operations, director of operations, a divisional vice president of supply chain systems, and a
divisional vice president of financial planning and analysis. “Jim’s financial leadership, coupled with a deep
understanding of operations and supply chain, will be a huge asset to CiCi’s as we look to revitalize and transform
our brand,” Darin Harris, CiCi’s chief executive, said in a statement. “Bringing a leader of his caliber to CiCi’s is
part of our strategic plan to be better at everything we do.” – Source: NRN.
Thank you for reading The Global Foodservice E-newsletter from American Recruiters!
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Craig Wilson
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Michael Page
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Ted Agins
312-780-7508
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Mario Schacher
847-909-1237
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DJ Amborski
312-780-7509
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Ron Alonzo
504-451-7395
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Paul Rychlewski
312-780-7507
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John Daschler
312-780-7506
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