RISE - Menu Monitor - Technomic
RISE - Menu Monitor - Technomic
RISE - Menu Monitor - Technomic
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<strong>RISE</strong><br />
Restaurant Information<br />
Services for Executives<br />
Tracking Vital Information on Key Chains<br />
1 st Quarter<br />
2004<br />
Prepared by:<br />
300 South Riverside Plaza<br />
Suite 1940 South<br />
Chicago, IL 60606<br />
312/876-0004<br />
312/876-1158<br />
www.technomic.com<br />
foodinfo@technomic.com
<strong>Technomic</strong>, Inc. believes that is sources of information are reliable but does not assume any liability for the<br />
accuracy or comprehensiveness of the information published. No part of the publication may be reprinted,<br />
redistributed or put into an electronic or information retrieval system without prior permission of <strong>Technomic</strong>.<br />
©<strong>Technomic</strong>, Inc. 2004<br />
300 South Riverside Plaza<br />
Suite 1940 South<br />
Chicago, Illinois 60606
99 Restaurant & Pubs....................................................... 1<br />
A&W Restaurants ............................................................. 4<br />
Acapulco Restaurants....................................................... 6<br />
Ale House ......................................................................... 8<br />
American Cafe .................................................................. 9<br />
Applebee's Neighborhood Grill & Bar ............................. 10<br />
Arby's.............................................................................. 14<br />
Ark Restaurants .............................................................. 18<br />
Atlanta Bread Company.................................................. 20<br />
Au Bon Pain.................................................................... 23<br />
Auntie Anne's.................................................................. 26<br />
Avado Brands, Inc........................................................... 28<br />
Back Bay Restaurants .................................................... 30<br />
Back Yard Burgers.......................................................... 32<br />
Bahama Breeze .............................................................. 34<br />
Baja Fresh Mexican Grill................................................. 36<br />
Bakers Square ................................................................ 40<br />
Baskin-Robbins............................................................... 43<br />
Benihana......................................................................... 46<br />
Bennigan's ...................................................................... 48<br />
Bertolini's Authentic Trattoria .......................................... 52<br />
Bertucci's ........................................................................ 53<br />
Big Bowl.......................................................................... 55<br />
Big Boy ........................................................................... 57<br />
Black-eyed Pea............................................................... 59<br />
Blimpie Subs & Salads.................................................... 61<br />
Bob Evans ...................................................................... 64<br />
Boddie-Noell Enterprises, Inc. ........................................ 67<br />
Bojangles' Famous Chicken 'N Biscuits .......................... 69<br />
Boston Market................................................................. 71<br />
Braum's Ice Cream & Dairy Stores ................................. 75<br />
Brinker International........................................................ 77<br />
Bruegger's Bagel Bakery ................................................ 80<br />
Bubba Gump Shrimp ...................................................... 82<br />
Buca di Beppo ................................................................ 84<br />
Buffalo Wild Wings Grill & Bar ........................................ 87<br />
Bugaboo Creek Steak House ......................................... 89<br />
Burger King..................................................................... 91<br />
California Pizza Kitchen .................................................. 99<br />
Canyon Cafes ............................................................... 103<br />
Capital Grille, The ......................................................... 104<br />
Captain D's ................................................................... 106<br />
Caribou Coffee.............................................................. 109<br />
Carl's Jr......................................................................... 111<br />
Carlson - Emerging Brands Div. ................................... 114<br />
Carlson Restaurants Worldwide ................................... 115<br />
Carrabba's Italian Grill .................................................. 117<br />
Carrols Corp. ................................................................ 119<br />
Carrows ........................................................................ 120<br />
Carvel Ice Cream Bakery.............................................. 122<br />
Champps Entertainment, Inc. ....................................... 125<br />
Charlie Brown's Steakhouses ....................................... 128<br />
Chart House.................................................................. 130<br />
Checkers Drive-In Restaurants..................................... 132<br />
Cheddar's Casual Cafe................................................. 134<br />
Cheesecake Factory, The............................................. 135<br />
Chesapeake Bagel Bakery ........................................... 138<br />
Chevys Fresh Mex........................................................ 139<br />
Chi-Chi's ....................................................................... 143<br />
Chick-fil-A ..................................................................... 145<br />
Chili's Grill & Bar ........................................................... 148<br />
Chipotle......................................................................... 152<br />
Chuck E. Cheese's ....................................................... 157<br />
Table of contents:<br />
Church's Chicken.......................................................... 159<br />
CiCi's Pizza................................................................... 163<br />
Cinnabon ...................................................................... 165<br />
CKE Restaurants, Inc. .................................................. 167<br />
Claim Jumper................................................................ 169<br />
Coco's Bakery Restaurant ............................................ 171<br />
Consolidated Restaurant Operations............................ 173<br />
Corner Bakery............................................................... 175<br />
Cosi............................................................................... 177<br />
Country Kitchen ............................................................ 180<br />
Coyote Canyon ............................................................. 182<br />
Cozymel's ..................................................................... 183<br />
Crab House/Capt. Crab's Take-Away ........................... 185<br />
Cracker Barrel Old Country Store ................................. 186<br />
Cucina! Cucina! Italian Cafe ......................................... 189<br />
Cucina! Cucina! Presto ................................................. 190<br />
Culver's Frozen Custard and ButterBurgers®............... 191<br />
D'Angelo Sandwich Shops............................................ 194<br />
Dairy Queen/ Brazier .................................................... 196<br />
Damon's Grill ................................................................ 199<br />
Darden Restaurants, Inc. .............................................. 201<br />
Dave & Buster's ............................................................ 205<br />
Daylight Donut Shops ................................................... 208<br />
Del Frisco's/Sullivan's ................................................... 209<br />
Del Taco ....................................................................... 211<br />
Denny's......................................................................... 213<br />
Diedrich/Gloria Jean's Coffee ....................................... 216<br />
Domino's Pizza ............................................................. 218<br />
Don Pablo's................................................................... 221<br />
Donatos Pizza............................................................... 224<br />
Dunkin' Donuts.............................................................. 227<br />
Eat 'n Park .................................................................... 232<br />
Einstein Bros. Bagels.................................................... 233<br />
El Chico ........................................................................ 236<br />
El Pollo Loco................................................................. 238<br />
El Torito ........................................................................ 240<br />
Famous Dave's ............................................................. 242<br />
Fazoli's.......................................................................... 245<br />
Fox & Hound English Pub & Grille ................................ 247<br />
Fox's Pizza Den ............................................................ 248<br />
Freshen's Premium Yogurt & Ice Cream ...................... 249<br />
Friendly's....................................................................... 251<br />
Frisch's Restaurants, Inc............................................... 254<br />
Fuddruckers.................................................................. 256<br />
Furr's/Bishop's Cafeterias ............................................. 259<br />
Fuzio Universal Pasta/Other Concepts ......................... 261<br />
Garcia's Mexican Restaurants ...................................... 262<br />
Garfield's Restaurant & Pub.......................................... 264<br />
Godfather's Pizza.......................................................... 266<br />
Golden Corral ............................................................... 268<br />
Good Eats..................................................................... 270<br />
Gordon Biersch/Big River Breweries............................. 271<br />
Grady's American Grill .................................................. 273<br />
Grandy's ....................................................................... 274<br />
Great American Cookies............................................... 276<br />
Great Steak & Potato Co., The ..................................... 277<br />
Green Burrito ................................................................ 279<br />
Ground Round .............................................................. 281<br />
Gumbo's Louisiana Style Cafe...................................... 283<br />
Haagen-Dazs................................................................ 284<br />
Hamburger Hamlet........................................................ 286<br />
Hard Rock Cafe ............................................................ 288<br />
Hardee's ....................................................................... 291
Harman Management Corp. ......................................... 294<br />
Hibachi San .................................................................. 295<br />
Hooters ......................................................................... 297<br />
Hops Grillhouse & Brewery........................................... 299<br />
Hot Sam........................................................................ 301<br />
Houlihan's..................................................................... 302<br />
Houlihan’s Restaurant Group ....................................... 304<br />
House of Blues ............................................................. 306<br />
Houston's...................................................................... 308<br />
Houston's Specialty Restaurants .................................. 310<br />
Huddle House............................................................... 312<br />
Hungry Howie's Pizza & Subs ...................................... 314<br />
Hungry Hunters/Mountain Jacks/Carvers ..................... 316<br />
Il Fornaio....................................................................... 317<br />
In-N-Out Burger ............................................................ 319<br />
International Dairy Queen, Inc. ..................................... 321<br />
International House of Pancakes.................................. 323<br />
Islands Restaurants...................................................... 327<br />
J. Alexander's ............................................................... 328<br />
Jack in the Box ............................................................. 330<br />
Jamba Juice ................................................................. 334<br />
Jason's Deli .................................................................. 336<br />
Jersey Mike's Subs....................................................... 338<br />
Jillian's Billiard Club & Cafe .......................................... 339<br />
Joe's Crab Shack.......................................................... 340<br />
Johnny Carino's Country Italian .................................... 342<br />
Johnny Rockets ............................................................ 344<br />
K&W Cafeterias ............................................................ 346<br />
KarmelKorn................................................................... 348<br />
Kenny Rogers Roasters................................................ 349<br />
KFC .............................................................................. 351<br />
Kimpton Individual Restaurants .................................... 356<br />
Koo Koo Roo ................................................................ 358<br />
Krispy Kreme ................................................................ 360<br />
Krystal Company .......................................................... 366<br />
la Madeleine ................................................................. 368<br />
La Salsa Fresh Mexican Grill........................................ 370<br />
Landry's Restaurants, Inc. ............................................ 372<br />
Landry's Seafood.......................................................... 374<br />
LaRosa's Pizzerias ....................................................... 376<br />
Lee's Famous Recipe ................................................... 378<br />
Legal Sea Foods .......................................................... 380<br />
Lettuce Entertain You Restaurants............................... 383<br />
Little Caesars................................................................ 386<br />
Logan's Roadhouse...................................................... 388<br />
Lone Star Steakhouse and Saloon ............................... 390<br />
Long John Silver's ........................................................ 392<br />
Longhorn Steakhouse................................................... 394<br />
Luby's ........................................................................... 396<br />
Maggiano's ................................................................... 398<br />
Max & Erma's ............................................................... 401<br />
Mazzio's Pizza .............................................................. 404<br />
McAlister's Deli ............................................................. 405<br />
McCormick & Schmick's ............................................... 407<br />
McDonald's................................................................... 410<br />
Metromedia Restaurant Group ..................................... 422<br />
Mexican Restaurants.................................................... 424<br />
Miami Subs Grill ........................................................... 426<br />
Mimi's Cafes ................................................................. 428<br />
Montana Mike's Steakhouse......................................... 430<br />
Morton's of Chicago...................................................... 431<br />
Mr. Gatti's ..................................................................... 433<br />
Mrs. Fields .................................................................... 435<br />
Mrs. Winner's Chicken & Biscuits ................................. 436<br />
Muer Seafood Restaurants........................................... 438<br />
Nathan's Famous.......................................................... 439<br />
National Sports Grill...................................................... 441<br />
Noble Roman's ............................................................. 442<br />
O'Charley's ................................................................... 444<br />
Office Beer Bar & Grill, The .......................................... 447<br />
Old Chicago Restaurants.............................................. 448<br />
Old Country Buffet/HomeTown Buffet........................... 450<br />
Old Spaghetti Factory, The........................................... 452<br />
Olive Garden, The ........................................................ 453<br />
On the Border ............................................................... 456<br />
Orange Julius of America ............................................. 458<br />
Original Cookie Co., The .............................................. 460<br />
Original Pancake House ............................................... 461<br />
Original Roadhouse Grill............................................... 462<br />
Outback Steakhouse .................................................... 463<br />
P.F. Chang's China Bistro............................................. 466<br />
Palm Restaurants ......................................................... 470<br />
Panda Express ............................................................. 472<br />
Panda Inn ..................................................................... 474<br />
Panera Bread/Saint Louis Bread Co............................. 475<br />
Papa Gino's .................................................................. 481<br />
Papa John's.................................................................. 483<br />
Pappas Restaurants ..................................................... 486<br />
Pat & Oscar's................................................................ 488<br />
Patina Restaurant......................................................... 490<br />
Pei Wei Asian Diner...................................................... 492<br />
Pepperoni Grill/Others .................................................. 494<br />
Perkins Restaurants & Bakery...................................... 496<br />
Peter Piper Pizza.......................................................... 498<br />
Piccadilly Circus Pizza.................................................. 500<br />
Pick Up Stix .................................................................. 502<br />
Pizza Hut ...................................................................... 505<br />
Pizza Inn....................................................................... 509<br />
Pizzeria Uno Chicago Bar & Grill.................................. 511<br />
Pollo Tropical................................................................ 513<br />
Ponderosa/Bonanza ..................................................... 515<br />
Popeyes Chicken & Biscuits ......................................... 517<br />
Prandium, Inc. .............................................................. 521<br />
Pretzel Maker ............................................................... 523<br />
Pretzel Time ................................................................. 524<br />
Quality Dining, Inc......................................................... 525<br />
Quiznos Subs ............................................................... 527<br />
Rainforest Cafe............................................................. 531<br />
Rally's Restaurants....................................................... 533<br />
Rare Hospitality International, Inc................................. 534<br />
Red Lobster .................................................................. 536<br />
Red Robin..................................................................... 541<br />
Restaurants Unlimited .................................................. 544<br />
Rio Bravo Fresh Mex.................................................... 546<br />
Roadhouse Grill............................................................ 548<br />
Rock Bottom Brewery ................................................... 550<br />
Rockfish Seafood Grill .................................................. 553<br />
Romano's Macaroni Grill .............................................. 555<br />
Round Table Pizza ....................................................... 558<br />
Roy’s Restaurants ........................................................ 560<br />
Rubio's Baja Grill .......................................................... 562<br />
Ruby Tuesday .............................................................. 564<br />
Ruth's Chris Steak House............................................. 568<br />
Ryan's Family Steak House.......................................... 570<br />
Sagebrush Steakhouse & Saloon................................. 572<br />
Saltgrass Steak House ................................................. 573<br />
Sbarro........................................................................... 575<br />
Sbarro Specialty Concepts ........................................... 577<br />
Schlotzsky's Deli........................................................... 579<br />
Seattle's Best Coffee .................................................... 583<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.
Shari's Restaurants....................................................... 585<br />
Shoney's ....................................................................... 587<br />
Sirloin Stockade............................................................ 589<br />
Smith & Wollensky........................................................ 590<br />
Smokey Bones BBQ ..................................................... 592<br />
Smoothie King .............................................................. 595<br />
Sonic Drive-Ins ............................................................. 597<br />
Sonny's Real Pit BBQ ................................................... 600<br />
Souper Salad ................................................................ 602<br />
Souplantation/Sweet Tomatoes .................................... 604<br />
Spaghetti Warehouse, The ........................................... 606<br />
Specialty Restaurants Dinnerhouses............................ 608<br />
Spectrum Foods ........................................................... 609<br />
Starbucks...................................................................... 610<br />
Steak and Ale ............................................................... 619<br />
Steak Escape................................................................ 621<br />
Stuart Anderson's ......................................................... 623<br />
Subway ......................................................................... 625<br />
T S Restaurants............................................................ 631<br />
T.G.I. Friday's ............................................................... 632<br />
Taco Bell....................................................................... 637<br />
Taco Bueno .................................................................. 641<br />
Taco John's................................................................... 643<br />
Tastee Freez................................................................. 645<br />
TCBY Treats ................................................................. 647<br />
Texas Roadhouse......................................................... 649<br />
Texas Steakhouse & Saloon......................................... 651<br />
Tia's Tex-Mex ............................................................... 652<br />
Tim Hortons .................................................................. 654<br />
Timber Lodge Steakhouse............................................ 656<br />
Togo's Eatery................................................................ 658<br />
Tony Roma's................................................................. 661<br />
Tumbleweed Grill & Bar ................................................ 663<br />
Villa Pizza & Cozzoli's Pizza......................................... 665<br />
Village Inn ..................................................................... 667<br />
Vinny T's of Boston ....................................................... 669<br />
Waffle House ................................................................ 671<br />
Wendy's Old Fashioned Hamburgers ........................... 672<br />
WesterN SizzliN............................................................ 677<br />
Western Steer............................................................... 679<br />
Whataburger ................................................................. 681<br />
White Castle ................................................................. 683<br />
Wienerschnitzel/O.H.S.................................................. 685<br />
Wolfgang Puck Fine Dining........................................... 687<br />
Yum! Brands, Inc. ......................................................... 689<br />
Zio's Italian Kitchen....................................................... 693<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.
99 Restaurant & Pubs<br />
Headquarters<br />
160 Olympia Ave., Woburn, Massachusetts 01801 USA<br />
Tel: (781) 933 8999 Fax: (781) 933 0821<br />
www.McCormickandSchmicks.com, www.99restaurants.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 200,000 178,410 159,542<br />
Company-owned ($000) 200,000 178,410 159,542<br />
Franchised ($000) - - -<br />
U.S. Number of Units 78 61 52<br />
Company-owned 78 61 52<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,950 2,925 3,068<br />
Concept Positioning |<br />
The Doe family owns the Woburn, MA-based chain, which has grown to nearly 80 restaurants and has an aggressive<br />
expansion plan. Charles Doe founded the company in 1952 at 99 State Street in Boston. The 99 and the horseshoe symbol<br />
remained part of the company logo.<br />
The restaurants feature large meal portions, with a variety of traditional New England style cooking in a family style<br />
atmosphere. The three Doe sons, Dana, Bill, and Chad, took over management of the chain from their father in 1993 and grew<br />
the chain by nine restaurants in 2001. In 2002, they sold the chain to O’Charley’s, Inc., but Charles Doe, Jr., remains concept<br />
president for the brand and the brand’s headquarters is still in Massachusetts. The expansion plan calls for 100 restaurants by<br />
the end of 2003, with growth throughout New England and into New York State.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong> features steaks, prime rib, chicken and traditional New England meals such as baked scrod and New England scallop<br />
pie, all served in generous portions. Dinner menu items range from $8.99 to 12.59. Lunch menu items, which include sandwich<br />
wraps, salads and chicken range from $5.99 to $7.99.<br />
<strong>Menu</strong> Development |<br />
Ninety Nine Restaurant & Pub is scheduled to launch a collection of new limited-time spring menu offerings March 17. They<br />
include a Cajun Skillet Sirloin ($9.99), Rodeo Ribeye Steak ($13.99), “Loaded” Potato Soup ($3.99) and an Old Fashioned Ice<br />
Cream Sundae ($3.29). (NRN Daily NewsFax)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
1
<strong>RISE</strong> COMPANY PROFILE<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Fruit is a common ingredient in desserts but is now gaining usage in savory applications such as appetizers, salads and<br />
entrees. As consumers become increasingly interested in Latin and Asian cuisines that incorporate fruit and healthful<br />
ingredients and fresh flavors become more in demand, fruit is ideally suited for a range of dishes. At 99 Restaurants, fruitbased<br />
sauces are used in several entrees such as the top-selling Oriental Teriyaki Chicken. It features two broiled chicken<br />
breasts glazed with sesame-pineapple sauce. That same sauce is also used as a dip for Lemon Crusted Salmon. Similarly, its<br />
Smokin’ Apple Bourbon Chicken Skillet consists of broiled chicken breasts glazed with apple-bourbon sauce and a topping of<br />
Pepper Jack cheese and smoked bacon. At California Pizza Kitchen, pears are used as a lighter topping for its Caramelized<br />
Pear & Gorgonzola Pizza. Meanwhile, O’Charley’s has found applications for fruit in several salads. Its Chicken Salad<br />
Supreme blends greens, fresh strawberries, mandarin oranges, dried cranberries and candied pecans with grilled chicken,<br />
while Pecan Chicken Tender Salad features the same base minus the strawberries, and utilizes pecan-crusted chicken. Citrus<br />
flavors are also quite popular, with lemons, limes, oranges and grapefruit among the most popular and versatile. At Lea in New<br />
York City, pan-seared, citrus-crusted halibut fillet is prepared with a dusting of zests from lemons, limes, oranges and<br />
grapefruits. Seasons 52, Darden’s Orlando test concept specializing in healthful foods, also relies on citrus zest for flavor.<br />
Dried orange and lemon zests are ground to a powder and sprinkled over fish and other foods. (Restaurant Business,<br />
Restaurants & Institutions)<br />
Ninety Nine Restaurant & Pub added a collection of limited-time seafood dishes to its menu through August 10. Priced from<br />
$4.99–$12.99, offerings include New England Scallop Pie (scallops baked in a casserole with seafood bread crumbs) and a<br />
Lobster Roll with fries and cole slaw. (NRN Daily NewsFax, 7/11/03)<br />
Ninety Nine Restaurant & Pub is offering a Coconut Shrimp Salad as part of its limited-time seafood promotion. Priced at<br />
$7.99, it also includes mandarin oranges, pineapple, sesame-glazed walnuts and creamy honey-ginger dressing. (Nation’s<br />
Restaurant News, 7/28/03, p42)<br />
Ninety Nine Restaurants is promoting two skillets as limited-time offers through early January. The Shrimp Primavera Skillet<br />
($10.99) features garlic buttered shrimp, roasted vegetables, marinara sauce, rice and Parmesan cheese. The Smokin’ Apple<br />
Bourbon Chicken Skillet ($8.99) has two apple bourbon glazed chicken breasts, sautéed onions and peppers, smoked bacon,<br />
Pepper Jack cheese and rice. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 11/5/03)<br />
Ninety Nine Restaurants & Pub featured a Bamboo Chicken Skewer as a limited-time offer through early January. Priced at<br />
$6.99, the item features five flame-broiled skewers glazed with sesame pineapple sauce and served with a spicy peanut<br />
dipping sauce. (Nation’s Restaurant News 11/24/03 p40)<br />
Personnel |<br />
John Grady, President<br />
John Cussen, Vice President of Finance<br />
Len Carpenter, Senior Vice President of Operations<br />
William Doe, Vice President of Purchasing<br />
Brad Schiff, Senior Vice President of Marketing<br />
Diane Dillon, Vice President of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
2
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Ninety Nine Restaurant & Pub owner O’Charley’s expects to double the number of units within five years. O’Charley’s acquired<br />
the chain last year for $160 million. Last year, Ninety Nine added 17 new restaurants and 10–12 more will open this year. It<br />
currently has 78 stores. (RB 7/15/03 p48)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
3
A&W Restaurants<br />
Headquarters<br />
101 Yorkshire Blvd., Lexington, Kentucky 40579 USA<br />
Tel: (859) 543 6000 Fax: (959) 543 6509<br />
www.awrestaurants.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 233,158 253,936 233,327<br />
Company-owned ($000) 41,439 45,651 50,500<br />
Franchised ($000) 191,719 208,285 182,827<br />
U.S. Number of Units 762 846 794<br />
Company-owned 124 141 161<br />
Franchised 638 705 633<br />
International Sales ($000) 85,000 110,587 71,995<br />
International Units 182 216 204<br />
Average Sales/Unit ($000) 247 324 313<br />
Concept Positioning |<br />
A&W Restaurants operates a chain of quick-service restaurants featuring traditional American fare. The chain specializes in<br />
desserts such as floats and hand-dipped shakes, and its proprietary product is draft A&W root beer. In 2000, the chain<br />
introduced a new Big Burger line with seven different Big Beef Double and Single burgers. Its restaurants are designed to<br />
operate in traditional freestanding buildings with drive-ins or drive-throughs.<br />
Nontraditional locations are also important venues and units are found within gas and convenience store locations, in regional<br />
malls, strip centers or a variety of other sites such as military bases, airports, etc. The chain also actively co-brands, especially<br />
with parent Yum! Brand’s KFC, Long John Silver’s and soon to come, Pizza Hut and Taco Bell brands.<br />
In 1919 Roy W. Allen purchased the recipe for A&W Root Beer and began selling frosty mugs of the concotion for 5 cents. He<br />
joined forces with Frank Wright in 1922 to officially name the beverage and form the A&W Root Beer Co. in Lodi, CA. The<br />
company began as a root beer stand and started franchising in 1923. A&W was incorporated in 1950 and adopted its present<br />
name in 1978. In 1982, it was sold to Taubman Investment Co. In late 1994, Taubman sold A&W to a group of private<br />
investors under the name Sagittarius Acquisitions, Inc., under the leadership of Sidney Feltenstein. In 1999 A&W purchased<br />
Long John Silver’s and Yorkshire Global Restaurants, Inc. was formed as the parent company of the two brands. In 2001,<br />
Yorkshire Global Restaurants was purchased by Tricon Restaurants (now Yum! Brands) which is the parent company of KFC,<br />
Pizza Hut and Taco Bell, forming the largest quick service restaurant company in the world with over 32,000 restaurants.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: regular and diet A&W root beer and A&W root beer floats. Includes hamburgers and cheeseburgers, hot<br />
dogs, Coney dogs, crispy chicken sandwiches and crispy chicken strips. Also fries, onion rings, hard or soft serve ice cream.<br />
Some menu regional favorites. No alcoholic beverages served. Check Averages: $6<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
4
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Restaurants of Canada Ltd. and Dairy Queen Canada have begun purchasing all their beef from Canadian<br />
producers, which have experienced flagging sales in the wake of a mad cow scare in that country. Canadian politicians had<br />
requested the change. In the past, McDonald’s 1,300 Canadian units purchased nearly 80% of their beef from Canadian<br />
producers. Dairy Queen, with 550 units in Canada, was the first chain to agree to alter its beef purchasing practices. The<br />
Saskatchewan Party Caucus said it also petitioned the Canadian arms of Wendy’s, Burger King and A&W to buy only<br />
Canadian beef. In related news, McDonald’s Restaurants of Canada planned to give away an estimated three million freehamburger<br />
coupons on August 22 to burger buyers at its stores. They may be redeemed through September 30. (NRN 8/4/03<br />
p3; NDNF 8/8/03)<br />
Personnel |<br />
Kevin Bazner, President<br />
Mark Plummer, Chief Financial Officer<br />
Peter Jarmosevich, Vice President of Finance<br />
Dave Barnowske, Vice President of Operations<br />
Mike Siladi, Vice President of Purchasing<br />
Bill Ruby, Director of Marketing<br />
News & Other |<br />
Yum! Brands is accelerating its multi-brand strategy. The company is encouraging existing stores to add a second brand to<br />
their locations. The costs associated with such a move range from $150,000–$300,000, though the addition usually generates<br />
$200,000–$300,000 annually in sales. Yum!, which owns Taco Bell, KFC, Pizza Hut and A&W, also noted that multi-branded<br />
sites often have a more “contemporary” feel, with high ceilings, curved design elements and a variety of seating options from<br />
high tops to booths to tables. (NRN 10/20/03 p74)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
5
Acapulco Restaurants<br />
Headquarters<br />
4001 Via Oro Ave., Long Beach, California 90810 USA<br />
Tel: (310) 513 7500 Fax: (310) 835 3156<br />
www.acapulcorestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 95,000 97,000 101,000<br />
Company-owned ($000) 95,000 97,000 101,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 45 50 49<br />
Company-owned 45 50 49<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,000 1,975 2,061<br />
Concept Positioning |<br />
Acapulco Mexican Restaurants & Cantina are full-service operations specializing in Mexican foods. Open for lunch and dinner,<br />
menu items are prepared fresh at each restaurant. While a standard menu is used throughout, customers may substitute items<br />
on any menu combination or request special dishes that are not on the menu.Most units are located in suburban areas in<br />
freestanding buildings that were converted from other concepts. They vary in size from 6,000–8,500 sq. ft. Built to resemble a<br />
colorful, upbeat Spanish hacienda; interiors are divided into open dining areas, each one decorated with Mexican artifacts that<br />
make it unique, along with a cantina that seats 125. Units also provide banquet services and catering.In 1960, chef Ray<br />
Marshall opened his first Acapulco Mexican Restaurant in Pasadena, CA. Restaurant Associates Corp. acquired the chain in<br />
the 1980s. In 1998, it sold Acapulco to an investor group of BRS, Furman Selz, BancBoston Capital, Acapulco management<br />
and Nick Valenti, chief executive of Restaurant Associates Corp. Valenti’s continuing involvement with the chain will be in an<br />
advisory role as well as holding a seat on its board of directors. BRS also maintains controlling interest in Au Bon Pain and<br />
California Pizza Kitchen.<br />
<strong>Menu</strong> Positioning |<br />
Traditional and specialty Mexican dishes including tacos, fajitas and enchiladas. Appetizers include quesadillas, nachos,<br />
taquitos and guacamole. Other specialties: shrimp fiesta platter, tequila-lime shrimp fajitas and seafood chimichanga. Full<br />
liquor service available; accounts for more than 35% of sales. House drink: Margarita in traditional and 8 fruit flavors. Offers<br />
Sunday Brunch Buffet. <strong>Menu</strong> Prices: $4–$14. Check Averages: $10–$15<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
6
Personnel |<br />
Frederick Wolfe, Chief Executive Officer<br />
Steve Tanner, Chief Financial Officer<br />
Julie Koenig, Vice President of Marketing<br />
Chuck Rink, Vice President of Operations<br />
Carlos Angulo, Director of Purchasing<br />
Pepe Lopez, <strong>Menu</strong> Development/R&D<br />
Nick Valenti, Chairman<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
El Torito & Acapulco Restaurants reported same-stores sales decreased 4.5% in the first half of the year. (Nations’ Restaurant<br />
News 09/08/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
7
Ale House<br />
Headquarters<br />
612 N. Orange Ave., Jupiter, Florida 33458 USA<br />
Tel: (561) 743 2299 Fax: (561) 743 7210<br />
www.alehouseinc.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 125,000 117,000 105,000<br />
Company-owned ($000) 125,000 117,000 105,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 30 29<br />
Company-owned 32 30 29<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,000 3,900 3,620<br />
Concept Positioning |<br />
The Ale House & Raw Bar is a chain of casual dining, pub-style restaurants. Its decor includes sports memorabilia, nautical<br />
woods, exhibition kitchens and a center island bar. In addition, each site carries the name of its location as part of its own<br />
official name. Jack and Claire Miller founded the Ale House in 1988. While each unit has been created as a single entity, all<br />
have a common ownership and parent Ale House Management oversees the operation.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: clams on the half shell, peel and eat shrimp and raw oysters. Entrees include fried clams, butterfly shrimp,<br />
Chicken Parmesan and barbecue ribs. Also menus 11 burgers and 11 sandwiches as well as several pasta dishes and salads.<br />
Selection of 36 draft beers add to appeal. <strong>Menu</strong> Prices: $2.75–$9.95. Check Averages: $9<br />
Personnel |<br />
Jack Miller, Chief Executive Officer<br />
Jack Miller, Chief Executive Officer<br />
Ray Holden, President<br />
Kate Grangard, Chief Financial Officer<br />
Dave Reid, Vice President of Operations<br />
Keith Fraser, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
8
American Cafe<br />
Headquarters<br />
150 W. Church St., Maryville, Tennessee 37801 USA<br />
Tel: (865) 379 5700 Fax: (865) 379 6829<br />
www.americancafe.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 57,996 59,058 63,566<br />
Company-owned ($000) 57,996 59,058 63,566<br />
Franchised ($000) - - -<br />
U.S. Number of Units 42 41 42<br />
Company-owned 42 41 42<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,400 1,480 1,513<br />
Concept Positioning |<br />
The American Cafe, formerly known as Mozzarella’s American Cafe, is a casual, full-service restaurant that feature eclectic<br />
Italian cuisine and a Euro-cafe ambiance. This combination allows it to position itself as American cafes with Italian accents.<br />
(This positioning strategy is reflected in the name change.) The menu is broad-based offering a variety of thin-crust gourmet<br />
pizzas, pastas, ribs, sandwiches, soups and salads. <strong>Menu</strong> items are made from scratch using the freshest premium<br />
ingredients.<br />
Units, both freestanding and in mall locations, typically measure 4,200–4,500 sq.ft. with seating for 140–160. Decor features<br />
wood trim and paneling, tile floors, food displays, European posters, artist-painted walls and strings of glowing lights.<br />
American Cafe began in 1993 as a conversion concept for a group of underperforming Ruby Tuesday units and a way for its<br />
former parent, Ruby Tuesday, Inc., to enter the highly competitive casual Italian segment.<br />
In 2000, parent Ruby Tuesday announced its intent to divest American Cafe and Tia’s Tex-Mex to Specialty Restaurant<br />
Group, LLC for some $54.5 million plus the cost of developing the three new units (currently estimated to be $4.5 million), of<br />
which Ruby Tuesday, Inc. will finance up to $20 million. Ruby Tuesday, Inc also has rights to acquire 33% of Specialty<br />
Restaurant Group, LLC through the fifth anniversary of the divestiture.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: thin-crust pizza and pasta. Other entrees include chicken potpies, grilled chicken, steak and ribs. Also<br />
features salads, sandwiches and soups. Appetizers include our signature Spinach con Queso, Sante fe Mini Chimis to name<br />
just a few. Specialty desserts include peanut butter ice cream pie and apple walnut crisp. <strong>Menu</strong> Prices: $5.99–$14.99 Check<br />
Averages: $9<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
9
<strong>RISE</strong> COMPANY PROFILE<br />
Applebee's Neighborhood Grill & Bar<br />
Headquarters<br />
4551 W. 107 St., Overland Park, Kansas 66207 USA<br />
Tel: (913) 967 4000 Fax: (913) 341 4970<br />
www.applebees.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 3,182,557 2,873,912 2,624,575<br />
Company-owned ($000) 723,550 651,119 605,414<br />
Franchised ($000) 2,459,007 2,222,793 2,019,161<br />
U.S. Number of Units 1,451 1,354 1,251<br />
Company-owned 356 310 285<br />
Franchised 1,095 1,044 966<br />
International Sales ($000) 61,431 52,376 43,964<br />
International Units 45 38 35<br />
Average Sales/Unit ($000) 2,237 2,221 2,124<br />
Concept Positioning |<br />
Applebee's Neighborhood Grill & Bar restaurants are full-service operations open for lunch, dinner, snacks, and weekend<br />
brunch. Units are primarily freestanding, suburban buildings or end caps of strip centers or enclosed shopping centers.<br />
Intimate pub settings that feature antiques, historic pictures, Tiffany-style lamps, latticework and plants create the ambience. A<br />
horseshoe shaped bar, seating approximately 17 additional customers, also serves as a focal point. Plus, many units have<br />
added outdoor patio seating. Each restaurant displays items that are unique to the city of its location.<br />
The company currently has four freestanding prototypes in use, with the larger units ranging from 4,700-5,000 sq. ft. with<br />
seating for 150-200 patrons. Its other two are for use in its “small town” expansion and range from 3,800–4,300 sq. ft. with<br />
seating for 135–145.<br />
William Palmer opened the first Applebee's in 1981 in two former fast-food outlets in Atlanta. Thecompany was acquired by<br />
W.R. Grace's Creative Food 'N Fun in 1983 and the brand changed to Applebee's Neighborhood Grill & Bar in 1985, after<br />
Taco Villa acquired Creative Food 'N Fun from Grace for six million common shares. In March 1988, Applebee's was<br />
purchased for $20 million by a group of investors who formed Applebee's International, Inc.<br />
An initial public offering was tendered in 1989. In early 1995, Applebee's completed its acquisition of Innovative Restaurant<br />
Concepts, operator of the Rio Bravo concept and divested itself of those operations in April 1999 to Chevy’s Fresh Mex for<br />
some $59 million. In late 1997, it announced the acquisition of 32 Applebee’s from Apple South (now Avado Brands) as part of<br />
that franchisor’s plan to exit the Applebee’s system.<br />
Current management includes Lloyd L. Hill, chairman of the board, chief executive officer, and president; Steven K. Lumpkin,<br />
executive vice president, chief financial officer and treasurer; and David Goebel, executive vice president of operations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
10
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Core of 60 items including steak, chicken, seafood specials, salads, chili, hamburgers and sandwiches; 35% of items are<br />
adapted to local tastes. Also menus appetizers such as potato skins, nachos, buffalo wings and mozzarella sticks. Signature<br />
items include Applebee’s barbecue pork Riblets, Oriental Chicken Salad, the House Sirloin and Fiesta Lime Chicken. Brunch<br />
items range from 5-layer Italian omelet to French toast sticks. Various food-specific promotions throughout the year. Alcoholic<br />
beverages served. <strong>Menu</strong> Prices: $2.50–$7.99. Check Averages: $10.50<br />
Expansion Plans |<br />
Up the Creek Fish Camp & Grill will open five franchised and two company units both this year and next in Georgia,<br />
Mississippi or Tennessee. It currently has a total of six units, including a prototype for expansion in Conyers, GA. Sporting a<br />
Colorado fishing camp motif, units average 6,500 sq.ft. and feature stacked stone exteriors and large porches. The menu<br />
offers pastas, sandwiches, salads and entrees featuring seafood, chicken and meat. All items are prepared to order. Among<br />
top-selling appetizers are the Lobster Dip ($6.95) and Fried Green Tomatoes ($3.99). Popular entrees include the Mixed<br />
Seafood Grill, which includes broiled Lemon-Lime Shrimp, Jim Beam Salmon and Tilapia ($14.99), and the New York Strip<br />
Steak ($14.99). Checks average $12 and units have an average volume of $3 million. The concept, developed by Applebee’s<br />
founder Bill Palmer, opened its first unit in the Atlanta suburb of Rome, GA, in 1999. (Chain Leader)<br />
Promotion Plans |<br />
Applebee’s 37 units on Long Island, NY, and in New Jersey teamed up with 1-800-FLOWERS.COM for a promotion that was<br />
scheduled for an early April launch. At franchisee Doherty Enterprises’ stores, each purchase of an Applebee’s Gift Card with<br />
a value of $25 or more included a $5 gift certificate from 1-800-FLOWERS.COM. (NRN Daily NewsFax)<br />
<strong>Menu</strong> Development |<br />
Applebee’s offered a collection of Cajun Combos in connection with Mardi Gras. Each of the four promotional offerings was<br />
served with garlic mashed potatoes, seasonal vegetables and toasted garlic bread. They included: ■ Bourbon Street Chicken<br />
and Bleu Cheese Sirloin—chicken breast grilled with Cajun spices paired with a Cajun-seasoned 7-oz. sirloin topped with<br />
melted bleu cheese ■ Bourbon Street Chicken and Shrimp—shrimp, lightly seasoned with Tabasco sauce and then goldenfried<br />
and served with Cajun chicken breast and a side of Creole honey mustard dipping sauce ■ Cajun Steak & Shrimp—<br />
Cajun-seasoned 9-oz. house sirloin and shrimp lightly seasoned with Tabasco and golden-fried; served with Creole honey<br />
mustard dipping sauce ■ Blackened Salmon & Cajun Shrimp—blackened Atlantic salmon seasoned with Cajun spices and<br />
served with golden-fried shrimp that are seasoned with Tabasco; served with Creole honey mustard dipping sauce. (Company<br />
Web Site)<br />
Applebee’s is once again running its Steak Stampede. It features returning favorites such as the Cajun-seasoned Bourbon<br />
Street Steak, a Blue Cheese Sirloin and Honey and its House Sirloin. Its Blue Cheese Sirloin is a new offering and features a<br />
9-oz. cut of meat topped with Cajun seasonings and melted cheese. Steaks are served with either country or garlic mashed<br />
potatoes, seasonal vegetables and garlic toast. The campaign also includes a Steak & Portobello quesadilla with two flour<br />
tortillas filled with grilled sirloin slices, portobello mushrooms, melted Cheddar cheese, onions, tomatoes, jalapenos and<br />
cilantro. (Company Web Site)<br />
Applebee’s recently retooled its low-fat quesadilla to make it better-tasting. The item features chipotle chicken breast,<br />
mozzarella and Cheddar cheese, mushrooms, carrots, corn, red pepper and red onion all grilled in a whole-wheat tortilla,<br />
topped with nonfat cilantro-ranch dressing and served with a side of salsa. The revamp included incorporating three different<br />
seasonings to the vegetable mix that is added to the chicken and switching to low-fat cheese from nonfat cheese. The entire<br />
dish contains less than 16 grams of fat. (Nation’s Restaurant News)<br />
Applebee’s has teamed with Weight Watchers International for a license agreement that will include a Weight Watchers<br />
branded section on the chain’s menu. The two organizations will develop a number of new offerings, including appetizers,<br />
entrees and desserts that will be tested in select markets later this year. A broader rollout to all units in the U.S. and Canada is<br />
planned for next year. (Business Wire, 7/25/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
11
Technology |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Applebee’s 37 units on Long Island, NY, and in New Jersey are teaming up with 1-800-FLOWERS.COM for a promotion that<br />
was scheduled for an early April launch. At franchisee Doherty Enterprises’ stores, each purchase of an Applebee’s Gift Card<br />
with a value of $25 or more will include a $5 gift certificate from 1-800-FLOWERS.COM. (NDNF 4/1/03)<br />
Personnel |<br />
Larry Cates, President<br />
Steve Lumpkin, Chief Financial Officer<br />
David Parsley, Director of Purchasing<br />
Jim Doak, Product Development<br />
Kurt Hankins, <strong>Menu</strong> Development/R&D<br />
Dave Goebel, Chief Operating Officer<br />
Lloyd L. Hill, Chairman<br />
Applebee’s promoted Kurt Hankins to senior vice president of menu development and innovation. (NRN Daily NewsFax<br />
12/22/03)<br />
Applebee’s promoted Dave Goebel to chief operating officer from executive vice president of operations. (NRN Daily NewsFax<br />
1/6/04)<br />
Applebee’s appointed chief financial officer Steve Lumpkin to an open seat on the board of directors and approved the<br />
promotion of John Cywinski to executive vice president from chief marketing officer. (NRN Daily NewsFax 1/6/04)<br />
News & Other |<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
Applebee’s International plans to roll out its curbside To Go service to more than half of its 1,500 restaurants by the end of<br />
fiscal 2003. Curbside pick-up currently is available at about 200 of its 372 company-owned outlets. The To Go program is<br />
credited with a 6.8% contribution to overall sales in the first quarter of fiscal ‘03, compared with 4.5% in the year-ago period.<br />
An internally executed survey of about 1,500 customers showed that more than 80% of To Go sales are incremental<br />
purchases, which implies minimal cannibalization of dining-room sales, according to company officials who spoke in a<br />
conference call with analysts. (NRN 5/12/03 p8)<br />
Applebee’s reported that approximately 130 units achieved more than $3 million in average sales in the past year, and the<br />
company is heading toward the $3 billion sales mark for this year. With 1,522 units, the company believes it can grow to 2,300,<br />
including scaled-down outlets in small towns with as few as 8,000 residents. (WRC 6/23/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
12
<strong>RISE</strong> COMPANY PROFILE<br />
Applebee’s is adding to its menu a section bearing the official Weight Watchers logo. With more than 1,500 restaurants,<br />
Applebee’s International entered into a license agreement with Weight Watchers International. Following tests later this year in<br />
selected markets, appetizers, entrees and desserts rated with Weight Watchers points will be introduced throughout the<br />
Applebee’s system in the U.S. and Canada. (NRN 8/4/03 p3; MBN 7/29/03 p8)<br />
Applebee’s International Inc. reported systemwide same-store sales for the four weeks ended August 24 increased 4.3%<br />
compared to the same period a year ago. The growth consisted of a 5.4% increase at company-operated stores and a 3.9%<br />
increase at franchised units. (Nation’s Restaurant News 09/08/03 p12)<br />
Applebee’s Neighborhood Grill & Bar’s largest unit will be opened in Manhattan’s Times Square by Apple-Metro Inc. Seating<br />
about 400 and occupying 13,260 sq.ft., it will occupy a site that formerly housed Lundy’s restaurant. Apple-Metro, which<br />
expects the outlet to open in November, currently operates another Applebee’s in Times Square. It operates a total of 18<br />
Applebee’s, three Chevys and one Zanaro’s Italian restaurant in greater New York. (NDNF 10/2/03)<br />
Applebee’s International Inc. for the third quarter ended September 28, reported revenues increased 21% to $253 million<br />
compared to the same quarter a year ago. Same-store sales increased 4.8%, and earnings increased 22% to $25.6 million.<br />
(NRN Daily NewsFax 10/31/03)<br />
Diets are becoming popular branding opportunities for restaurants, celebrity chefs and fitness gurus. With the recent<br />
partnerships between chef Rick Bayless and Burger King, as well as Oprah’s personal trainer, Bob Greene, and McDonald’s,<br />
aligning with and promoting branded diets has become a new way to attract the nation’s millions of dieters. Private diet<br />
companies are also teaming with operators, as noted by agreements between Weight Watchers and Applebee’s and Atkins<br />
Nutritionals and Blimpie Subs & Salads, which stocks the diet company’s low-carb Cruncher Chips. (NRN 11/3/03 p4)<br />
Applebee’s for the four weeks ended November 23, reported that systemwide same-store sales increased 5.1%. (NRN Daily<br />
NewsFax 12/3/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
13
Arby's<br />
Headquarters<br />
1000 Corporate Dr., Ft. Lauderdale, Florida 33334 USA<br />
Tel: (954) 351 5100 Fax: (954) 351 5192<br />
www.arbys.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,695,422 2,564,945 2,409,955<br />
Company-owned ($000) - - -<br />
Franchised ($000) 2,695,422 2,564,945 2,409,955<br />
U.S. Number of Units 3,250 3,198 3,153<br />
Company-owned - - -<br />
Franchised 3,250 3,198 3,153<br />
International Sales ($000) 59,149 58,294 64,520<br />
International Units 153 153 166<br />
Average Sales/Unit ($000) 843 814 -<br />
Concept Positioning |<br />
Arby's is a chain of quick service restaurants open for lunch, dinner and snacks. Many locations also serve breakfast and<br />
some 60% have drive-through services.<br />
Arby's restaurants are freestanding or located in shopping malls and strip sites. A typical outlet is 2,500–3,000 sq. ft. with seats<br />
for 75–100 patrons. Its most recent prototype features a partial glass exterior and columnar lighting. Traditional units have a<br />
stucco exterior with a vertical fascia and columns in wheat and red colors.<br />
In addition, parent Triarc Restaurant Group owns T.J. Cinnamons, a retail bakery brand centering on fresh-baked cinnamon<br />
rolls and gourmet coffee beverages. More than 300 are currently open as dual-branded units. Triarc also owns Pasta<br />
Connection, a lunch and dinner concept. It is operating as a dual-brand concept within Arby’s.<br />
Arby's was founded in Boardman, OH, in 1964 by Leroy Raffel and his brother Forrest, former sellers of foodservice<br />
equipment. The company went public in 1974 and was acquired by DWG Corp. in 1976. In April 1993, controlling interest in<br />
DWG Corp. was sold, and the corporate name was subsequently changed to Triarc Companies, Inc. It completed its<br />
acquisition of T.J. Cinnamons in mid-1996. In February 1997, parent Triarc announced the sale of its 355 company-owned<br />
Arby’s to RTM, Inc., its largest franchisee, for some $71 million. Joyce and Ted Rice founded T.J. Cinnamons in 1984.<br />
Current management includes Michael Howe, president and chief executive officer; and Michael Welche, senior vice president<br />
operations.<br />
<strong>Menu</strong> Positioning |<br />
Expanding on their basic offering of roast beef sandwiches, Arby’s has developed a number of Market Fresh sandwiches and<br />
salads, with an array of meats, cheeses and vegetables designed to appeal to a healthier lifestyle.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
14
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Arby’s introduced an Italian Beef ‘n Provolone sandwich on a new artisan bread baguette to address consumer demand for<br />
premium breads. It features roast beef that has been marinated in a sauce with Italian seasoning, topped with grilled onion and<br />
Provolone cheese. The company will also introduce different sandwich fillings and spicier spreads. (Nation’s Restaurant News,<br />
Restaurants & Institutions)<br />
Arby’s continues its work to develop new sandwiches on more premium breads such as baguettes and focaccia, along with<br />
providing options for additional customization of sandwiches. It is also planning several new filling combinations, with six<br />
varieties planned for testing in June. Options reportedly may include chicken salad with apple chunks and grapes; ham with<br />
pineapple slices; and barbecued brisket with Hawaiian teriyaki sauce. The chain is also said to be eyeing new soups and<br />
salads, as well as possible dinner entrees. (Miami Herald)<br />
Arby’s launched a new Homestyle Pot Roast Sandwich. Served on the chain’s new hearth-baked soft baguette roll, it features<br />
savory pot roast, horseradish ranch sauce and aged Cheddar cheese. It will be available for a limited time and is priced over<br />
$4. (Company Release, Restaurant Business Daily News)<br />
Arby’s was preparing to launch a Homestyle Pot Roast sandwich that will be available for a limited time. Ranging in price from<br />
$4.29–$4.79, it features pot roast, horseradish ranch sauce and Cheddar cheese on a new hearth-baked soft baguette roll.<br />
Arby’s chief executive Michael Howe, who launched Market Fresh Sandwiches nearly two years ago, also wants to round out<br />
the chain’s menu with soups, salads and possibly dinner entrees. (NRN 4/21/03 p94; WRC 4/103)<br />
Arby’s is testing a line of Bistro Sandwiches as an extension of its Market Fresh line. Offered in Flint, MI, and Charleston, SC,<br />
they are priced from $4.50–$6.50. Test sandwiches include a Ham Dijon Royale with thick-cut pepper bacon, Cheddar, tomato<br />
and mixed field greens on a soft baguette; Portofino Turkey with smoked mozzarella, marinated portobello mushrooms,<br />
roasted red peppers, mixed field greens and balsamic vinaigrette on herb focaccia; and California Chicken Salad with chopped<br />
apples, grapes, celery, pecans and leaf lettuce on a soft baguette. Length of the test has not yet been determined, but the<br />
company hopes to eventually roll out the line nationwide. The chain is also slated to launch a club sandwich served on harvest<br />
white bread as a limited-time offer under its Market Fresh line. (NRN Daily NewsFax, 6/5/03, USA Today, 6/3/03, p2B, Nation’s<br />
Restaurant News, 6/16/03, p14)<br />
Arby’s introduced a Five-Star Club as a limited-time offer. Available through August 31 and priced at $4.29, it includes roast<br />
ham, roast turkey, Cheddar and Swiss cheeses, pepper bacon, tomatoes and mayonnaise on oat-topped white bread. The<br />
company is also planning a Market Fresh Roast Turkey Ranch and Bacon sandwich on honey wheat bread for later this<br />
summer. (NRN Daily NewsFax, 7/8/03)<br />
Lighter sandwiches emphasizing fresh ingredients are increasingly common in the limited-service segment as operators work<br />
to boost the healthy options on their menus. Schlotzsky’s is just one example. The chain is currently testing 13 “lighter side”<br />
offerings with nine grams of fat or less. Others have also created sandwiches for health-minded consumers, though taste and<br />
flavor remain priorities. Examples include: ■ Turkey Sandwich—with banana peppers, black olives, cucumbers, red onions,<br />
tomatoes, field greens and fat-free champagne vinaigrette on a baguette, Arby’s ■ Spicy Chipotle Chicken—with chipotle<br />
mayonnaise, red onions, romaine lettuce and roma tomatoes on Tuscan herb bread, Schlotzsky’s ■ Chicken Stir-Fry D’Lite—<br />
grilled chicken, mushrooms, peppers, onions, lettuce and tomatoes with fat-free garlic or ginger sauce, D’Angelo Sandwich<br />
Shops ■ Sweet Onion Chicken Teriyaki—teriyaki-glazed chicken strips, lettuce, tomatoes, onions, green peppers, olives and<br />
fat-free sweet onion sauce on choice of bread, Subway. (Restaurants & Institutions, 8/1/03, p29)<br />
Arby’s added three new sandwiches on artisan-style baguettes. Priced from $3.69 to $3.79, the French Dip ‘n Swiss, Philly<br />
Beef Supreme and Italian Beef ‘n Provolone are being introduced incrementally through December. (NRN Daily NewsFax<br />
11/21/03)<br />
Arby’s added three new sandwiches served on soft baguettes to its menu. With suggested retail prices ranging from $3.69–<br />
$3.79, offerings include: ■ Italian Beef ‘n Provolone—roast beef marinated in Italian seasonings with smokehouse onions,<br />
provolone cheese and roasted garlic sauce ■ Philly Beef Supreme—roast beef topped with fire-roasted vegetables and Swiss<br />
cheese ■ French Dip ‘n Swiss—roast beef and au jus; served with au jus for dipping. (Nation’s Restaurant News 12/15/03 p32)<br />
Personnel |<br />
Triarc appointed Douglas N. Benham president and chief executive of Arby’s Inc. He will replace Michael C. Howe. (NRN Daily<br />
NewsFax 12/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
15
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Arby’s was preparing to launch a Homestyle Pot Roast sandwich that will be available for a limited time. Ranging in price from<br />
$4.29–$4.79, it features pot roast, horseradish ranch sauce and Cheddar cheese on a new hearth-baked soft baguette roll.<br />
Arby’s chief executive Michael Howe, who launched Market Fresh Sandwiches nearly two years ago, also wants to round out<br />
the chain’s menu with soups, salads and possibly dinner entrees. (NRN 4/21/03 p94; WRC 4/103)<br />
Nation’s Restaurant News (NRN) recently announced the winners of its 2003 Hot Concepts! Awards. Having profiled each of<br />
the concepts soon after they hit the ground running, <strong>Technomic</strong> Information Services agrees with NRN’s choices and,<br />
naturally, we can’t help but examine what they teach us about the emerging chain business. The NRN 2003 Hot Concepts!<br />
are: • Fogo de Chao—four units; an all-you-can-eat Brazilian casual dining chain • Grand Lux Café—three units; an offshoot of<br />
The Cheesecake Factory featuring global cuisine • Pei Wei Asian Diner—21 units; P.F. Chang’s quick-casual pan-Asian<br />
concept • Raising Cane’s Chicken Fingers—12 units; a limited-service chain with a basic menu of chicken fingers • Smokey<br />
Bones BBQ—34 units; Darden Restaurants’ barbecue concept that has a sports bar theme • Ted’s Montana Grill—eight units;<br />
media mogul Ted Turner’s bar and grill concept featuring bison • Arby’s—3,300 units; while not an emerging concept, NRN<br />
recognizes how the chain has reinvented itself by developing its Market Fresh line of deli-style sandwiches and, more recently,<br />
a new prototype, cooking system and humorous ad campaign. At first glance, it is difficult to see one quality that these<br />
concepts share. But they each have successfully filled a niche in the chain restaurant industry, and they developed a clear<br />
identity backed by likable food. Whether a barbecue restaurant that offers sports-bar amenities or a bar and grill serving bison,<br />
these chains have been leaders in some way. For example, Pei Wei Asian Diner along with, of course, Pick Up Stix (78 units)<br />
have been forerunners in the promising quick-casual Asian category, and several chains are following, like Yan Can. In<br />
claiming a niche, emerging concepts always face and put forth challenges, such as convincing the public to try bison or a<br />
Brazilian buffet or to become regulars at a restaurant that stakes its entire business on one item, the chicken finger. Boston<br />
Market, often credited as one of the first quick-casual concepts, put forth a challenge to diners last month with its new concept<br />
Rotisserie Grill (profiled in this issue). The concept is elevating quick-casual’s image by serving diners’ meals on real china,<br />
upgrading decor and offering table service for desserts and alcoholic beverages. Yet it maintains quick-casual’s prices and<br />
general counter service. Will diners bite? The above-mentioned chains took risks and took the lead. With careful trend<br />
research, a quality product, and strong leadership, the gamble rarely seems as great as the final rewards.<br />
Arby’s has begun testing “Bistro Sandwiches,” an extension of its Market Fresh line, that will sell for $4.50–$6.50. Being tested<br />
in Flint, MI, and Charleston, SC, the sandwiches feature toppings such as smoked mozzarella and roasted red peppers and<br />
soft baguettes or herb focaccia. In related news, Arby’s will expand its Market Fresh offerings systemwide in July with the<br />
launch of a limited-time club sandwich. (NDNF 6/5/03)<br />
Arby’s is examining opportunities for offering customers a wider array of side items. These would include fruit and pasta salads<br />
or side salads and soups. Later this summer, Arby’s plans to introduce the MarketFresh Roast Turkey Ranch and Bacon<br />
sandwich on honey wheat bread. A six-item Bistro sandwich line, priced at $4.69 each, is being test-marketed in Charleston,<br />
SC, by franchisee RTM Restaurant Group and in Flint, MI, by Arby’s parent, Triarc Restaurant Group. (R&I 7/15/03 p18; NRN<br />
RTM Restaurant Group is halting all co-branding initiatives to focus on its Arby’s core brand. Arby’s largest franchisee with 789<br />
units in 22 states, RTM is opting for the single-brand approach due in part to Arby’s expanded menu strategy with its premium<br />
MarketFresh deli sandwich line and the new Bistro line of sandwiches now in test. Such options eliminate customers’ veto<br />
vote, according to RTM management, since Arby’s isn’t just a place for roast beef anymore. The company recently halted its<br />
eight-year-old experiment with dual-branding Mrs. Winner’s and Del Taco. It had planned to dual-brand the entire Mrs.<br />
Winner’s chain. Remaining co-branded stores are four Arby’s/Mrs. Winner’s as well as 16 Arby’s-Sbarro units and 43<br />
Arby’s/T.J. Cinnamons in several markets. Those units still in operation will be evaluated based on revenues and profit on an<br />
individual basis. The dual Arby’s/Mrs. Winner’s are in RTM’s home base of Atlanta and most of the Arby’s/Sbarro units are in<br />
Minnesota. Separately, RTM plans to open at least 35 new Arby’s annually through 2009 and to remodel 15–20 restaurants<br />
per year. (NRN 7/14/03 p1)<br />
Lee’s Famous Recipe Chicken is being acquired by foodservice veteran Jeff Miller from RTM Restaurant Group. Miller ran the<br />
former DenAmerica group in Phoenix until 1995 and currently is heading an eight-unit Pizza Hut franchise in the Florida<br />
panhandle. He will spend 90 days in discussion with 154-unit Lee’s operators before making any announcements about menu<br />
and expansion strategies. Two-thirds of the Lee’s system is in Kentucky and Ohio. RTM said the Lee’s sale allows it to put its<br />
full emphasis on Arby’s development. RTM operates 789 Arby’s in 22 states. It acquired Lee’s from Shoney’s Inc. in 1995 and<br />
put the chain on the market last year. (NDNF 10/10/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
16
<strong>RISE</strong> COMPANY PROFILE<br />
Turkey sales within the foodservice industry rose 7.3% during the first half of 2003, according to the National Turkey<br />
Federation’s annual membership survey. The top sellers among foodservice operators are fully cooked deli meats such as<br />
turkey breast, salami, bologna and other cured products. The NTF notes that increased sales can be attributed to an increase<br />
in the number of signature sandwiches containing turkey that are being offered by chains such as Subway, Arby’s and Einstein<br />
Bros. (NRN 11/10/03 p94)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
17
Ark Restaurants<br />
Headquarters<br />
85 Fifth Ave., New York, New York 10003 USA<br />
Tel: (212) 206 8800 Fax: (212) 206 8814<br />
www.arkrestaurants.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 115,107 127,007 119,212<br />
Company-owned ($000) 115,107 127,007 119,212<br />
Franchised ($000) - - -<br />
U.S. Number of Units 38 39 45<br />
Company-owned 38 39 45<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,000 3,250 2,649<br />
Concept Positioning |<br />
Ark Restaurants owns and operates 26 restaurants and bars, 12 fast food concepts, catering operations, and wholesale and<br />
retail bakeries. Its restaurant concepts are America, Canyon Road, Metropolitan Cafe, Ernie's, Sequoia, Lorelei Restaurant<br />
and Cabana Bar, Lutece, Tsunami Grill, Gonzalez y Gonzalez, Fat Anthony’s and Bryant Park Grill. Units typically have a<br />
70/30 sales mix of food and beverages. Ark also manages four restaurants owned by others, operates a New York City and<br />
Washington, DC, catering business as well as wholesale and retail bakeries in New York, a cafe in the Warner Bros. Studio<br />
store in New York and various food courts and bars with the service of food in Las Vegas.<br />
All units feature a lively, casual atmosphere, but each has its own approach to menu and decor. Units typically incorporate<br />
dramatic interior open spaces and extensive glass walls that allow passers-by to view the activities of the restaurant. Most<br />
have a separate bar patronized by customers awaiting tables. Lighting and decoration schemes are usually vivid and<br />
theatrical. America, with average unit volumes at its Washington, DC, unit in the $6.8 million area, uses Americana for its<br />
theme, created by wall-sized murals depicting the Statue of Liberty, the American eagle, etc.<br />
Its current growth strategy is to move the company from operating a group of small neighborhood restaurants located primarily<br />
in New York into an operator of large destination sites. To accomplish this, it is beginning to divest its smaller units with<br />
moderately priced menus even though it will continue to seek high-end concepts like Lutece.<br />
The company, formerly known as Ark Management Corp., descends from predecessor corporations founded by Ernest Bogen<br />
and Michael Weinstein. Its initial stock offering was made in the fall of 1985. In 1987, the company began operating<br />
restaurants, under management agreements, owned by others.<br />
In February 1998, the company bought the Stage Deli of Las Vegas for some $2.7 million in cash. The restaurant, located in<br />
the Forum Shops at Caesar’s Shopping Center, seats 200.<br />
Current management includes Michael Weinstein, president and chief executive officer (he's also the company's largest<br />
stockholder); and Robert Towers, vice president and chief operating officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
18
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bryant Park Grill—specialties range from barbecue quail and swordfish hash entrees to scallion pancakes and mushroom<br />
stew. America—200 ethnic and regional U.S. dishes. Check Averages: $8.50–$20, depending on specific operation<br />
Personnel |<br />
Ernest Bogen, Chairman<br />
Michael Weinstein, President<br />
Robert Stewart, Chief Financial Officer<br />
Robert Towers, Chief Operating Officer<br />
Vincent Pascal, Vice President of Operations<br />
John Oldweiler, Director of Purchasing<br />
Jasmyn Sharrock, Director of Marketing<br />
William Foo, Chef<br />
News & Other |<br />
Ark Restaurants reported same-store sales decreased 16.5% in the third quarter ended June 28. (Nation’s Restaurant News<br />
9/15/03 p81)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
19
Atlanta Bread Company<br />
Headquarters<br />
1200 A Wilson Way S.E. Suit 100, Smyrna, Georgia 30082-9813 USA<br />
Tel: (770) 432 0933 Fax: (770) 444 1992<br />
www.atlantabread.com<br />
Ownership: Private<br />
Segment: Limited Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 160,600 101,000 72,000<br />
Company-owned ($000) 7,200 1,000 700<br />
Franchised ($000) 153,400 100,000 71,300<br />
U.S. Number of Units 153 120 90<br />
Company-owned 8 1 1<br />
Franchised 145 119 89<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,050 960 699<br />
Concept Positioning |<br />
Atlanta Bread Co. is a quick casual concept that brings a variety of choices for breakfast and lunch diners. The bakery café<br />
offers assorted muffins, danishes, bagels and hot breakfast sandwiches, and the lunch menu includes fresh sandwiches,<br />
grilled panini, soups and salads. Units each have a warm décor with hardwood floors and classical music broadcast<br />
throughout.<br />
The concept debuted in Atlanta in 1993. A franchising program was launched in 1995. Checks average $6.50.<br />
<strong>Menu</strong> Positioning |<br />
Offers a wide variety of made-to-order sandwiches, hot soups, tossed-to-order salads, panini, gourmet coffees, bakery sweets<br />
and breads.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
20
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Chai is a spiced tea drink popular in northern India that is now gaining ground on U.S. menus. Made with a blend of teas, milk<br />
and aromatic spices such as cardamom, cinnamon, cloves, ginger, nutmeg and pepper, it can be served hot or cold. At Port<br />
City Java based in Wilmington, NC, chai is an appealing alternative for guests who don’t drink coffee. Several major chains are<br />
now serving chai drinks, including Dunkin’ Donuts, Starbucks, Panera and Atlanta Bread. Starbucks is currently serving chai<br />
tea lattes in both hot and iced varieties as well as chai cream frappuccinos. Vancouver, WA-based Burgerville even offers an<br />
Oregon Chai milk shake. (Nation’s Restaurant News, 8/4/03, p31)<br />
Nuts are gaining ground on limited-service menus as chains in that segment upscale their offerings. The popularity of fastcasual<br />
Asian menus has broadened consumer exposure to Asian recipes that often include nuts and some operators are now<br />
incorporating nuts into mainstream menu items to add a pan-Asian influence. Wendy’s offers nuts in its Mandarin Chicken<br />
Salad with almonds and Schlotzsky’s uses nuts not only as a salad topping, but also in sauces such as its Thai peanut sauce<br />
on a Thai Chicken Pizza. Another popular offering is an Asian Almond Chicken Wrap and almond-topped asparagus soup.<br />
Atlanta Bread Company features almonds on its Georgian Chicken Sandwich as well as a Curry Chicken Salad and Chopstix<br />
Salad. (QSR 10/03 p59)<br />
Personnel |<br />
Jerry Couvaras, Chief Executive Officer<br />
Alan Sack, Chief Financial Officer<br />
Basil Couvaras, Chief Operating Officer<br />
Daryl Still, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
21
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Atlanta Bread Company signed a development deal for 30 outlets to be opened in New York over the next five years. The<br />
agreement is with Barry Gersten, owner of the original Tony Roma’s Restaurant in New York. He will open units in the<br />
counties of Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester. (NDNF 8/7/03)<br />
Delta Airlines partnered with Atlanta Bread Co. on a four-week test of onboard meal sales. It was slated to run from July 12–<br />
August 10 on a total of 400 round-trip flights between Atlanta, Dallas and Cincinnati and select cities. Delta’s airline caterer,<br />
Gate Gourmet, will prepare the meals, which will be adjusted based on customer feedback during the test. Delta has been<br />
testing on-the-ground sales of in-flight meals at Cincinnati-Northern International Airport in cooperation with Anton Airfood Inc.,<br />
the airport’s concessionaire. (NDNF 7/9/03; NRN 7/21/03 p20)<br />
Atlanta Bread is testing a kiosk concept at c-stores. Pastries, muffins and other breakfast baked goods are delivered from<br />
franchised or corporate stores. Operated out of the chain’s cafés, the kiosks are located in 62 c-stores in Atlanta and 54 in the<br />
Dallas-Fort Worth market. (CSN 10/12/03 p192)<br />
Atlanta Bread Co. plans to open 600 new stores by 2007, with about 75% of them to be franchised. The chain also is looking<br />
into a branding program that would distribute pastries and breads at convenience and grocery stores. It opened 28 units in<br />
2003, with most of the new stores using its 4,500-sq.ft. prototype, which includes a wood-burning oven. Some 10 existing<br />
stores were remodeled to reflect the prototype look and 23 more are expected to be converted next year. In related news, the<br />
company announced that Hartford, CT-area restaurateurs Jack and John Muirhead signed a lease for a Newington, CT,<br />
location for the chain’s first bakery-café in New England. The Muirheads, who have exclusive rights to develop the café<br />
concept in southern New England, expect their first unit to open in March. There currently are more than 150 Atlanta Bread<br />
stores in 24 states. (FER 11/03 p9; NDNF 11/19/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
22
Au Bon Pain<br />
Headquarters<br />
19 Fid Kennedy Ave., Boston, Massachusetts 2210 USA<br />
Tel: (617) 423 2100 Fax: (617) 423 7879<br />
www.aubonpain.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 188,200 205,000 197,000<br />
Company-owned ($000) 150,200 170,000 169,000<br />
Franchised ($000) 38,000 35,000 28,000<br />
U.S. Number of Units 207 210 202<br />
Company-owned 142 149 150<br />
Franchised 65 61 52<br />
International Sales ($000) 12,000 16,000 15,000<br />
International Units 41 50 48<br />
Average Sales/Unit ($000) 1,225 1,200 1,126<br />
Concept Positioning |<br />
Au Bon Pain is a limited-service, bakery-cafe operation. The brand has approximately 50% of sales in carryout, with breakfast<br />
accounting for 25% of total sales and lunches for 45% of total sales. During the morning breakfast period, Au Bon Pain units<br />
are largely a bakery but come lunch and snack times, the menu offerings expand to include soups, salads and sandwiches. All<br />
bakery items are prepared in a central production facility, frozen and then delivered to stores to be baked in ovens fresh<br />
throughout the day. About 30% of sales are baked goods, including rolls used for sandwiches. The average Au Bon Pain store<br />
is about 2,700 sq. ft. with seating for 80 and is located in high-traffic, densely populated areas. Many have outdoor seating<br />
areas. Croissants, muffins and other baked goods are featured at a large display/service counter. The company is in the midst<br />
of a full remodel program focusing on abundant food displays and an energetic, French marketplace theme.<br />
It has also developed a corporate catering program that will deliver breakfast and lunch items for on-site consumption at<br />
corporate functions. Orders are received and processed at its corporate headquarters, then dispatched via its computer<br />
system to the closest Au Bon Pain unit.<br />
Louis Kane founded Au Bon Pain Inc. in March 1978. Pavailler, a French company that manufactures bakery equipment, in<br />
Faneuil Hall, Boston, ran the original bakery. In mid-1991, the company went public. In mid-1992, it acquired Warburton's, a<br />
Chicago-based chain of 22 units. It then sold to franchisee ABP Midwest eight of the stores located in Chicago for conversions<br />
and then in early 1994, acquired that franchisee.<br />
In late 1993, it announced the acquisition of St. Louis Bread Company for $24 million in cash and additional considerations<br />
based upon future performance. In March 1999, Au Bon Pain Inc. stockholders approved the sale of its flagship Au Bon Pain<br />
brand to ABP Corp., an affiliate of Bruckmann, Rosser, Sherrill Co., Inc. for some $73 million. The deal was completed by mid-<br />
1999. In late 2000, food management giant Compass Group PLC acquired the chain from BRS for an undisclosed sum.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
23
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: on-premise baked breads, bagels, muffins, croissants, rolls and cookies. Lunch features soups and upscale<br />
made-to-order sandwiches. Beverages include espresso and cappuccino. <strong>Menu</strong> Prices: 89¢–$6.99. Check Averages: $3.80.<br />
<strong>Menu</strong> Development |<br />
Fast-casual menus are not always as healthy as some consumers perceive them to be. Emphasizing fresh ingredients and<br />
made-to-order preparations in many cases, diners view the segment as a healthy alternative to traditional fast food. And while<br />
many of these concepts do offer a wide range of nutritious fare, other choices were recently cited for nutrition surprises by the<br />
Center for Science in the Public Interest (CSPI). Examples noted as high in fat and/or calories included Panera’s Broccoli<br />
Cheddar soup, Au Bon Pain’s mozzarella sandwich and the Cobb salad at Briazz. Good nutritional choices included Au Bon<br />
Pain’s Fields & Feta Wrap, Panera’s vegetarian black bean soup and the orzo pasta salad at Briazz. (Restaurant Business<br />
Daily News)<br />
Au Bon Pain expanded its menu with 11 muffins that contain no trans fat. Priced at $1.59 each, varieties include blueberry,<br />
corn and double chocolate chunk. Trans fats, known to raise cholesterol and the risk of heart disease, are formed by the<br />
hydrogenation of vegetable oils to increase shelf-life and make solids such as margarine and shortening. (NRN Daily NewsFax<br />
10/29/03)<br />
Franchise Activity |<br />
Au Bon Pain announced a partnership with George Darany calling for the development of 10 cafes in Michigan and Ohio.<br />
(NRN Daily NewsFax 12/3/03)<br />
Technology |<br />
Au Bon Pain introduced touchscreen computer kiosks that provide nutrition information and ingredient lists. Although the<br />
kiosks do not provide information for customized orders, they do permit searching through categories such as "Lower in<br />
Saturated Fat " and "Higher in Fiber," allowing consumers to see what items might best fit their specific dietary needs. The<br />
implementation included 130 company-operated restaurants. (Nation's Restaurant News 8/11/03 p70)<br />
Au Bon Pain recently rolled out touchscreen computer kiosks at its 130 company-operated stores. The kiosks provide nutrition<br />
information and detailed ingredient lists for all menu items, including seasonal and limited-time offerings. Users of the kiosks<br />
also can study specialty categories such as “Lower in Saturated Fat” or “Higher in Fiber” to see which menu items may best<br />
meet their dietary needs. Thus far, consumer feedback has been positive. Au Bon Pain, based in Boston, is owned by<br />
Compass Group North America. (NRN 8/11/03 p70)<br />
Personnel |<br />
Frank Guidara, Chief Executive Officer<br />
Tim Oliveri, Chief Financial Officer<br />
R.J. Dourney, Vice President of Operations<br />
Jim Fisher, Vice President of Marketing<br />
Fred Matheson, Director of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
24
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
A recent study from Tufts University revealed that although many consumers perceive menu items in the quick-casual<br />
segment to be healthier than traditional fast-food, some of those foods are higher in both fat and calories. According to its<br />
research, a McDonald’s Quarter Pounder with Cheese has less fat and calories than both Panera’s Smoked Ham & Swiss<br />
sandwich and Baja Fresh’s Steak Burrito. It also revealed that Jack in the Box’s Chicken Fajita Pita contained less than half<br />
the fat and calories of Au Bon Pain’s Chicken Caesar Wrap and a regular-sized McDonald’s hamburger and six-inch turkey<br />
breast sub from Subway both have less calories and fat than a traditional vegetable sandwich on multigrain bread at Panera.<br />
(Nation’s Restaurant News)<br />
St. Joseph’s Regional Medical Center in Paterson, NJ, added an Au Bon Pain mobile concession cart in January. Every<br />
afternoon, the cart is brought to 10–12 of the hospital’s units, along with the operating room radiology waiting rooms and other<br />
hospital areas. It is accessible to all patients who are not on restricted diets—about 225 daily. It sells Au Bon Pain pastries,<br />
cookies, pre-packaged sandwiches and salads, Krispy Kreme donuts and beverages. The cart currently is a cash operation<br />
but the hospital has a card swipe system in the works that would allow patients or family to purchase declining balance cards<br />
to be used instead of cash. (FSD 5/15/03 p8)<br />
Restaurant Associates president and chief executive Nick Valenti has acquired an unspecified equity stake in the company,<br />
which was acquired by Compass Group North America five years ago. He will work with Rick Postiglione, president and chief<br />
executive of Compass Group’s B&I sector, and Dick Catani, president of Restaurant Services, to expand the B&I portion of<br />
Restaurant Associates throughout the U.S. Its accounts currently include Conde Nast in New York. In addition, Valenti and<br />
Compass Group have formed a joint venture that has the effect of creating a “premium hospitality group” that includes New<br />
York-based restaurants such as Brasserie, Tropica and Naples 45; sports and entertainment accounts; Au Bon Pain; Patina<br />
Restaurants on the West Coast; and the Krispy Kreme Donuts franchise for New York. Valenti will continue to serve as a<br />
member of the board of directors of Compass Group North America, a division of London-based Compass Group PLC. (FSD<br />
4/15/03 p18; R&I 4/1/03 p23)<br />
Rush Presbyterian-St. Luke’s Medical Center in Chicago saved nearly $100,000 by adding Au Bon Pain as a replacement for<br />
a wait-staffed restaurant in its main Atrium Building lobby. Sizeable commission checks go to the department on a regular<br />
basis and the savings reflects all expenses as well as lost revenues from the restaurant. (FSD 9/15/03 p36)<br />
Logan International Airport’s recently overhauled Terminal E includes 10 different restaurant brands. The revamped<br />
foodservice at the Boston airport was coordinated by BAA Boston. They include a 10,000-sq.ft. food court featuring<br />
McDonald’s, Sbarro, Wok & Roll and Au Bon Pain. Nearby is a 3,250-sq.ft. full-service Houlihan’s. Located in the presecurity<br />
retail area is Dine Boston Bar & Grill and a Dine Boston Café, both owned by Boston Red Sox player Darren Lewis. Their<br />
menus feature dishes from well-known Boston chefs, including Jimmy Burke of Tuscan Grill and Joe Milano of Old Union<br />
Oyster House. Logan International also plans to renovate food venues in its Terminals B and D. (NRN 9/29/03 p20)<br />
Au Bon Pain introduced 11 new muffins to its menu. Priced at $1.59, they contain no trans fat. Varieties include blueberry,<br />
corn and double chocolate chunk. (NDNF 10/29/03)<br />
Au Bon Pain and Bennigan’s Grill & Tavern have partnered with in-flight caterer Gate Gourmet on a 90-day test of onboard<br />
foodservice with United Airlines. The test, encompassing more than 200 flights a day from 10 cities, will feature Au Bon Pain’s<br />
Asiago cheese bagel and Bennigan’s Kilkenny County Chicken Salad as menu options. (NDNF 11/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
25
Auntie Anne's<br />
Headquarters<br />
160-A Route 41 P.O. Box 529, Gap, Pennsylvania 17527 USA<br />
Tel: (717) 442 4766 Fax: (717) 442 1296<br />
www.auntieannes.com<br />
Ownership: Private<br />
Segment: Limited Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 222,616 217,525 214,186<br />
Company-owned ($000) 12,264 13,141 10,776<br />
Franchised ($000) 210,352 204,384 203,410<br />
U.S. Number of Units 673 647 636<br />
Company-owned 31 32 30<br />
Franchised 642 615 606<br />
International Sales ($000) 9,713 6,367 5,279<br />
International Units 91 70 54<br />
Average Sales/Unit ($000) 359 343 359<br />
Concept Positioning |<br />
Auntie Anne's is a chain of specialty shops that sell hand-rolled soft pretzels. Mostly located in shopping center food courts,<br />
units are generally open seven days a week and typically reflect operating hours of each site. The company also has units in<br />
numerous other nontraditional locations including airports and other transportation sites. In addition, a satellite retail program is<br />
offered that allows stores to have a second, smaller modified unit within its venue. Satellite locations feature a limited product<br />
line.<br />
The chain uses a proprietary recipe for its pretzels that is softer and sweeter than many formulas. Pretzels are rolled by hand<br />
and held for no more than 30 minutes.<br />
Founded in 1988 by Anne Beiler as a way to earn extra income for her family. The company continues to be run largely by<br />
Beiler and her family. Franchising began in 1989, and its current franchising program was developed in 1991.<br />
Current management includes Anne Beiler, chairperson and chief executive officer; Jonas Beiler, vice chairman; Samuel R.<br />
Beiler, president and chief operating officer; and Grant Markley, chief financial officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: large, hand-rolled pretzels in 10 flavors including original, jalapeno, whole wheat, sour cream and onion, garlic,<br />
sesame, cinnamon sugar, Glazin' Raisin ® , Parmesan herb and almond. Specialty dips range from cream cheese and sweet<br />
mustard to marinara sauce and caramel. Also on the menu is fresh squeezed lemonade and Dutch Ice ® frozen drink. Prices<br />
average $1.76 each.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
26
Promotion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Auntie Anne’s plans to break its first national TV spots by the close of the first quarter. This comes almost three years after it<br />
began testing media to determine how best to stimulate sales. In addition, the chain is targeting kids with its first toy promotion,<br />
a tie-in to the release of “Jonah—A Veggie Tales Movie” on DVD and VHS. Customers can purchase a plush toy version of the<br />
character Jonah for $2.99 when they buy two pretzels and a beverage. In other news, Auntie Anne’s plans to add a new Dutch<br />
Treats frozen dairy product line to complement its Dutch Ice smoothies. This will allow it to serve milk shakes and smoothies.<br />
(NRN 2/10/03 p14)<br />
<strong>Menu</strong> Development |<br />
Auntie Anne’s launched Stix, a follow-up to its successful Kidstix, at the end of this month. The 4-in. Stix will replace Kidstix,<br />
which were being bought by adults and older children. They will be sold in two varieties—original and cinnamon sugar—in<br />
packs of four or six. Stix will be available through November 1. (Nation’s Restaurant News, 7/28/03, p18)<br />
International Activities |<br />
Auntie Anne’s Hand-Rolled Soft Pretzels opened an outlet in the Sogo Department Store in Taipei, Taiwan, marking the 13th<br />
country in which Auntie Anne’s is located. The exclusive license to own and operate all Auntie Anne’s pretzel locations within<br />
Taiwan belongs to Hwang & Brothers Enterprise Co., LTD. The licensing agreement calls for 14 Auntie Anne’s to open<br />
throughout the nation over the next several years. (MFN March-April/03 p27)<br />
Personnel |<br />
Anne Beiler, Chief Executive Officer<br />
Sam Beiler, President<br />
Grant Markley, Chief Financial Officer<br />
Dale Smucker, Director of Purchasing<br />
Judy Shaffer, Director of Marketing<br />
News & Other |<br />
Auntie Anne’s is replacing its Kidstix pretzels with Stix. From August 31–November 1, the 4-in. Stix will be available in original<br />
and cinnamon in packs of four or six, depending on the market. Pricing will vary. Auntie Anne’s, with more than 800 units<br />
across the country, is rolling out Stix because adults and older children were buying Kidstix even though they were aimed at<br />
children. A spokeswoman said the chain would decide after November 1 whether Stix will become a permanent menu item.<br />
(NDNF 7/21/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
27
Avado Brands, Inc.<br />
Headquarters<br />
Hancock and Washington Street, Madison, Georgia 30650 USA<br />
Tel: (706) 342 4552 Fax: (706) 342 4057<br />
www.avado.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Don Pablo's<br />
Hops Grillhouse & Brewery<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 441,588 473,504 -<br />
Company-owned ($000) 441,588 473,504 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 190 219 -<br />
Company-owned 190 219 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Avado Brands, Inc. operates in the casual dining sector. Its chain brands include Don Pablo’s, a fresh, high-quality Tex-Mex<br />
and traditional Mexican chain; Canyon Cafe, specializing in Southwestern casual; Hops Restaurant Bar & Brewery, one of the<br />
country’s largest brewpub chains; and McCormick & Schmick’s, a casual dining seafood chain known for its fresh fish. Each<br />
chain runs as a separate division responsible for everything from menu selection to financial results.<br />
Avado Brands dates back to 1986 with its founding as The MRG Company, Inc. by Tom E. DuPree, Jr. In 1987, the corporate<br />
name became Apple South, Inc. In November 1991, it went public. It acquired DF&R Restaurants (then parent of Don Pablo's<br />
and Harrigan's) in 1995. Its Hardee’s franchisee system was sold in 1996 and in 1997, 75% of its interest in Harrigan’s was<br />
sold to Pinnacle Restaurant Group for $10 million. In 1997, the company completed three acquisitions: Hops Bar and Grill,<br />
Tampa, FL; McCormick & Schmick’s, Seattle; and Canyon Cafes, Dallas.<br />
In January 1998, the company acquired 20% interest in Belgo Group, PLC, London, an operator of two Belgian restaurants in<br />
the United Kingdom, but divested the holdings in early 2001. Late the same year, a new corporate name, Avado Brands, Inc.,<br />
was adopted to better reflect its multi-brand operational system. Its stock was also changed to AVDO. In February 1999, a<br />
50/50 joint venture with London-based PizzaExpress PLC was formed to develop that brand in North America. The venture<br />
plans were exited in early 2001.<br />
In mid-2001, Avado announced the sale of its McCormick & Schmick’s chain to Castle Harlan Inc. and Bruckmann, Rosser,<br />
Sherrill and Co. Inc. for some $123.5 million in cash. Proceeds will be used to pay down debt. It also consolidated operations<br />
for its Don Pablo’s and Canyon Cafe brands into corporate headquarters. In December 2002, Avado Brands “substantially<br />
completed” the divestiture of its Canyon Café chain. It has four remaining units, which it is holding for sale.<br />
Current management includes Tom E. DuPree, Jr., chairman and chief executive officer and Louis Profumo, chief financial<br />
officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
28
Personnel |<br />
Robert Sroka, Chairman<br />
Kevin Leary, Chief Executive Officer<br />
Ronald Magruder, President<br />
Louis Profumo, Chief Financial Officer<br />
Mike Reinert, Director of Purchasing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Avado Brands Inc. founder, chairman and chief executive officer Thomas Dupree Jr. resigned. Chief administrative officer<br />
Margaret Waldrep also resigned. The company named Kevin Leary interim CEO and Robert Sroka acting chairman.<br />
Previously, Leary held senior operations and financial posts at Au Bon Pain and Gloria Jean's Gourmet Coffee. (NRN Daily<br />
NewsFax 11/11/03)<br />
News & Other |<br />
Avado is reorganizing in an attempt to lighten its cash burden. It closed the headquarters of its 65-unit Hops Restaurant, Bar<br />
and Brewery chain in Tampa, FL, and consolidated all management functions in its home office in Madison, GA. Hops chief<br />
executive Ronald Magruder resigned; his duties will be assumed by Avado chairman and chief executive Tom Dupree. About<br />
29 Hops management and support employees were affected, with some given the chance to relocate or remain with the<br />
company in field positions. Also set for a realignment of executive duties is Avado’s other main brand, the 111-unit Don<br />
Pablo’s Mexican Kitchen. The Hops’ effort is part of Avado’s cost-cutting as it sells-off assets in anticipation of a May 25<br />
deadline for retiring its $75 million credit facility. Its auditors recently expressed “substantial doubt” about its ability to continue<br />
as a “going concern.” (NRN 3/31/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
29
Back Bay Restaurants<br />
Headquarters<br />
284 Newbury St., Boston, Massachusetts 2115 USA<br />
Tel: (617) 536 2800 Fax: (617) 236 4175<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 120,000 120,000 122,000<br />
Company-owned ($000) 120,000 120,000 122,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 34 35 35<br />
Company-owned 34 35 35<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,550 3,500 3,485<br />
Concept Positioning |<br />
The Back Bay Restaurant Group has six upscale/casual dining restaurants under a variety of trade names including<br />
Papa.Razzi, Charley's Eating & Drinking Saloon, Joe's American Bar & Grill, Abe & Louie’s, The Famous Atlantic Fish Co. and<br />
single-unit Coach Grill. Its units are all company-owned. With the exception of Papa.Razzi, menus of each, while having slight<br />
variations and different pricing, rely on American fare served in stylish "saloon" settings. In addition, some feature prominent<br />
take-out areas with one suburban Papa.Razzi having more than 15% of its sales attributed to takeout.<br />
Dining room ambience has always been important. The flagship Charley's, for example, has an "American saloon" feeling with<br />
such decor elements as a carved bar with back-lit stained glass and a cast iron staircase that leads to a lower level and glassenclosed<br />
conservatory. The other units of the same name have a similar feeling with lots of dark wood, brass, etched glass<br />
and fabrics of burgundy and hunter green. Papa.Razzi is its growth concept and prides itself on providing an excellent<br />
customer price/value relationship. Such details as homemade salad dressings and soups, freshly ground Parmesan cheese<br />
and extra-virgin olive oil enhance that value.<br />
Units are typically located in shopping malls or as freestanding structures in both suburban and urban settings. They are open<br />
seven days a week; serving both lunch and dinner. In 1998, the chain’s average sales per unit were $2.9 million.<br />
Back Bay Restaurant Group dates back to the opening in 1965 of an Italian restaurant in the Back Bay section of Boston by<br />
Charles Sarkis. The first Charley's Eating & Drinking Saloon opened a few doors away from the Italian unit in 1968. By 1991,<br />
the corporation reorganized and became the Back Bay Restaurant Group, Inc. In late 1998, SRC Holdings, formed by Back<br />
Bay chairman and chief executive Charles F. Sarkis, completed its $40 million buyout of Back Bay stock, taking the company<br />
private.<br />
Current management includes Sarkis; Francis P. Bissaillon, executive vice president and chief financial officer; Mark L.<br />
Hartzfeld, executive vice president and chief operations officer.Holdings are led by Charles F. Sarkis, the company’s current<br />
chairman and chief executive and other senior managers.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
30
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Papa.Razzi—Northern Italian including pastas, grilled and sautéed veal, chicken and seafood entrees and more than 12<br />
pizzas. <strong>Menu</strong> Prices: $6.75 and up. Check Averages: $12.50–$19. Others emphasize American-style foods including chicken<br />
and seafood dishes, grilled steaks, Mexican entrees, hamburgers, salads, soups, desserts and ice cream. Check Averages:<br />
$11–$16<br />
Franchise Activity |<br />
Backyard Burgers Inc. signed three developmental agreements to open 21 new restaurants. The pact with Prime Brands LLC<br />
calls for 15 outlets over the next seven years in Alabama and Mississippi. Providence Restaurant Group LLC has been signed<br />
to develop 4 outlets over the next four years in Charlotte, North Carolina, while Chambliss and Sons LLC will open 2 outlets in<br />
Louisiana. (NRN Daily NewsFax 9/25/03)<br />
Personnel |<br />
David Davidson, Vice President of Operations<br />
Charles Sarkis, Chairman<br />
Francis Bissaillon, Chief Financial Officer<br />
Mike Berry, Chief Operating Officer<br />
Ann Marie Lagrotteria, Vice President of Operations<br />
Michael Halpern, Vice President of Operations<br />
Back Bay Restaurant Group executive vice president and partner Mark L. Hartzfeld died October 13 of heart failure. He was<br />
56 years old. (Nation’s Restaurant News 10/27/03 p3)<br />
Back Bay Restaurant appointed David Davidson vice president of operations. Previously, Davidson was executive director of<br />
Yale University Dining Services. (NRN Daily NewsFax 12/31/04)<br />
News & Other |<br />
The Cheesecake Factory said Michael P. Berry resigned as president and chief operating officer of its restaurant division.<br />
Berry was named president and chief operating officer of 36-unit Back Bay Restaurant Group of Boston, where he will become<br />
the first person in the company’s 40-year history to serve as president other than founder Charles Sarkis. Sarkis will remain<br />
chief executive officer. Among Back Bay’s largest brands are Joe’s American Bar & Grill and Papa Razzi’s. (NDNF 9/26/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
31
Back Yard Burgers<br />
Headquarters<br />
1657 N. Shelby Oaks Dr. Suite 105, Memphis, Tennessee 38134 USA<br />
Tel: (901) 367 0888 Fax: (901) 367 0999<br />
www.backyardburgers.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 84,950 77,700 68,439<br />
Company-owned ($000) 30,950 27,540 26,182<br />
Franchised ($000) 54,000 50,160 42,257<br />
U.S. Number of Units 119 104 93<br />
Company-owned 42 37 35<br />
Franchised 77 67 58<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 797 784 748<br />
Concept Positioning |<br />
Back Yard Burgers are drive through restaurants that offer a diverse menu of made-to-order foods. Customers are served<br />
within 60 seconds of arrival at a service window. Units are generally open seven days a week for lunch, dinner and late-night<br />
snacks.<br />
Units average 820–3,400 sq.ft. in size and are manufactured modular constructed buildings that feature a backyard theme.<br />
The majority also has a patio for outdoor eating with tables and benches as well as landscaping and outdoor music. Through<br />
the years, dine-in facilities have been added to all units and its current prototype includes this element. In addition, plans call<br />
for the chain to begin work on enhancing its existing dine-in areas.<br />
The company incorporated in late 1986 and opened its first units in early 1987. It made its initial public offering in mid-1993.<br />
Current management includes Lattimore M. Michael, founder, chairman and chief executive officer; Michael W. Myers,<br />
president and chief operating officer; Michael G. Webb, chief financial officer; and Michael C. McDermott, executive vice<br />
president, company operations<br />
<strong>Menu</strong> Positioning |<br />
Signature item: made-to-order 100% Black Angus beef (implemented use of it systemwide in early ‘01) charbroiled<br />
hamburgersAlso chicken sandwiches, Gardenburger (vegetarian) and other sandwiches, side salads, chili, baked beans, soup,<br />
fries and baked potatoes, and fresh-baked cobblers. Also features hand-dipped milk shakes and fresh-squeezed lemonade.<br />
Desserts include hand-made cobblers. Uses brand-name beverages, condiments, etc. <strong>Menu</strong> Prices: 89¢–$2.79. Check<br />
Averages: $4.59.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
32
Franchise Activity |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Back Yard Burgers Inc. signed developmental deals with Chesapeake Restaurant Group LLC and Mike and Don Rolf calling<br />
for the opening of 25 additional outlets. Chesapeake will open 12 outlets in Delaware over the next six years, and the Rolf<br />
brothers will open 13 outlets in Arkansas and Kansas by 2010. (Nation’s Restaurant News 9/8/03 p96)<br />
Back Yard Burgers signed six franchise deals calling for the opening of 53 stores over the next seven years. Franchisees<br />
include Gresham Hospitality LLC, Black Cow Enterprises LTD, BYB LLC, Isoluc LLC, Harrison Restaurant Group LLC and<br />
Bayburgers. Terms of the deals were not disclosed. (NRN Daily NewsFax 1/2/04)<br />
News & Other |<br />
Back Yard Burgers’ co-branding has worked better with Taco Bell than with Pizza Hut in the chain’s first five co-branded<br />
restaurants. Thus far, three Taco Bell pairings have been opened—two in Louisville and one in St. Louis—and two Pizza Hut<br />
units in the small Tennessee towns of Fayetteville and Portland. The Pizza Hut pairing has not worked well, the two brands<br />
have agreed, with differences in preparation and cooking times presenting major hurdles. The burger brand will be removed<br />
from the two Pizza Huts later this year. Although specific results are not being revealed, the Back Yard pairings with Taco Bell<br />
have been successful, with five more co-branded sites in the works, two to be in the St. Louis area and three in Ft. Wayne, IN.<br />
No other Yum! Brands concepts are being considered for co-branding with the burger concept for the short term. Back Yard’s<br />
agreement with Yum! grants the option to co-brand up to 500 more of the burger outlets. (RB 5/1/03 p46<br />
Back Yard Burgers is testing late-night service by keeping some of its stores open three hours later than normal, according to<br />
a recent SEC filing. The company noted that sales had risen during the test but that higher labor costs were likely to hurt nearterm<br />
profitability. (RB 9/15/03 p12)<br />
Backyard Burgers Inc. for the third quarter ended September 27, reported revenues increased 11.8% to $9.8 million. (NRN<br />
Daily NewsFax 10/22/03)<br />
Back Yard Burgers Inc. for the third quarter ended September 27, reported revenues increased 11.8% to $9.8 million<br />
compared to the same quarter last year. (Nation’s Restaurant News 11/3/03 p20)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
33
Bahama Breeze<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809 USA<br />
Tel: (407) 245 4000 Fax: (407) 245 6648<br />
www.bahamabreeze.com<br />
Ownership: Public<br />
Segment: Full Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 140,000 120,000 100,000<br />
Company-owned ($000) 140,000 120,000 100,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 26 19<br />
Company-owned 32 26 19<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,000 4,800 5,263<br />
Concept Positioning |<br />
Darden Restaurants owns and operates Bahama Breeze, a Caribbean-inspired upscale casual dining company. Open for<br />
dinner-only, it moves Darden several steps higher in the casual dining sector. Bahama Breeze is designed to capture the<br />
essence of the Caribbean by offering guests an escape from everyday life with made-from scratch Caribbean fare, live island<br />
music, tropical drinks and a relaxed atmosphere. The restaurant itself is reminiscent of an island plantation house, with high<br />
ceilings, large and airy dining rooms, lush tropical greenery, and a colorful décor that features Caribbean artwork, natural tile,<br />
wicker, rich woods, a tin roof and 20-foot palm trees. An open-display kitchen and brick pizza oven add to the interior.<br />
Currently, its units average 10,000 sq. ft., with seating for approximately 275.<br />
Pioneered by Darden Restaurants, Inc. executives Blaine Sweatt, president of new business and creator of The Olive Garden,<br />
and Roger Thompson, senior vice president of strategic research, the first Bahama Breeze opened in Orlando in February<br />
1996.<br />
<strong>Menu</strong> Positioning |<br />
Offers authentic Caribbean fare as well as salads, appetizers and pizzas. Signature items: rich diversity of Caribbean cuisines<br />
with such dishes as West Indian patties and Escabeche. Features include seafood-oriented soups and samplers, grilled<br />
chicken, pork and beef dishes as well as pastas, salads and pizzas. Many entrees available in full or half portions. <strong>Menu</strong><br />
Prices: $6.95–$12.95Check Averages: $19.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
34
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bahama Breeze is testing lunch service at three units in Arizona. Offerings include soups, salads and sandwiches. (Nation’s<br />
Restaurant News)<br />
Bahama Breeze is expanding its lunch test to additional markets as the next step toward a possible rollout. It has also begun<br />
testing several new dishes, including more fresh fish, oak-fired half-chicken and a revamped paella. (Restaurant Business,<br />
8/15/03, p16)<br />
Bahama Breeze is showcasing two new sandwiches on its lunch menu. A Honey Roasted Bahama Club is enhanced with<br />
roasted red pepper aioli, while the Ropa Joe features shredded beef simmered with peppers and onions, then layered with<br />
three cheeses. (North Shore Magazine, 10/03 p91)<br />
Pizzas are increasingly carrying a broad range of ingredients, creating pies that range from traditional basics to innovative<br />
signatures. At Godfather’s, offerings range from simple Humble Pie with sausage, peppers and onions to the more upscale<br />
Chicken Artichoke pizza with white garlic sauce, artichokes and red onions, which is similar to the designer pizzas popularized<br />
by chef Wolfgang Puck. Bahama Breeze has a Four Tomato Pizza that boasts vine-ripened Roma, yellow pear, grape and<br />
sun-dried tomatoes, and Red Lobster has a thin-crust Lobster pizza topped with basil. Specialty cheeses are also becoming<br />
more common. Dave & Buster’s has a Shiitake Boursin pizza and Napa Valley Grill in Chicago offers a Brie and Duck Confit<br />
pie on a seasonal basis. (Nation’s Restaurant News 12/1/03 p35)<br />
Personnel |<br />
Chip Brown, Vice President of Marketing<br />
Peter Olsacher, Chef<br />
Laurie Burns, President<br />
Bahama Breeze named Chip Brown vice president of marketing. Previously, Brown was vice president for Smokey Bones.<br />
(NRN Daily NewsFax 12/8/03)<br />
News & Other |<br />
Bahama Breeze, a dinner-only concept, is testing lunch service at three branches in Arizona. The Darden Restaurantsoperated<br />
chain is serving a menu of soups, salads and sandwiches. If it is well received, it will be rolled out to all 32<br />
Caribbean-themed units. (NRN 4/28/03 p3)<br />
Bahama Breeze’s new prototype reduces the size of the patio and does away with an open-air bar. The 32-unit chain of<br />
Caribbean-themed restaurants is owned by Darden Restaurants. The prototype does away with live music outdoors, which<br />
was a problem in many municipalities, where such noise is prohibited in neighborhoods. In other cases, some municipalities<br />
will not allow an outside bar. Company chief executive Joe Lee recently told analysts that the company is not getting the<br />
returns on Bahama Breeze that it wants in order to continue growing the brand into a big chain. The company acknowledged<br />
that same-store sales for the seven-year-old concept have dropped recently. (RB 7/15/03 p12)<br />
Bahama Breeze has begun testing a new menu, about half of which is made up of about half new items such as more fresh<br />
fish, oak-fired half chicken and a revamped paella. Prices are about the same as on the former menu. The company would not<br />
speculate as to whether the menu will make it beyond the test stage. In addition, the Darden Restaurants-owned chain is<br />
expanding its lunch test into South Florida, Chicago and Orlando. Thus far, guest feedback has been strong, according to the<br />
company. (RB 8/15/03 p16)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
35
Baja Fresh Mexican Grill<br />
Headquarters<br />
100 Moody Ct., Thousand Oaks, California 91360 USA<br />
Tel: (805) 495 4704 Fax: (805) 367 0367<br />
www.bajafresh.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 249,100 176,700 108,000<br />
Company-owned ($000) 114,300 71,600 38,000<br />
Franchised ($000) 134,800 105,100 70,000<br />
U.S. Number of Units 210 151 96<br />
Company-owned 98 67 39<br />
Franchised 112 84 57<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,500 1,520 974<br />
Concept Positioning |<br />
Defined as a limited-service Mexican chain, Baja Fresh Mexican Grill sets itself apart from its competitors by offering and<br />
preparing fresh, healthy Mexican favorites with the absence of microwaves, can openers, freezers, Styrofoam, lard and MSG.<br />
In addition, salsas are made fresh daily and served at a complimentary, self-serve salsa bar; only boneless, skinless chicken<br />
breast is used; steak is trimmed of all its fat; and chips are made in 100% cholesterol-free canola oil.<br />
Units, which are generally situated in end-cap or freestanding locations, carry a refreshing appearance with the use of an open<br />
exhibition-style kitchen and bright lights. Adding to its decor is a black-and-white tiled floor and a dominant use of red, green<br />
and white. Average unit size is about 2,000–3,000 sq.ft. with seating for approximately 60–100 patrons.<br />
Created by James Magglos, the first Baja Fresh opened in Newbury Park, CA, in 1990. Most of the early development of the<br />
concept was done in Conejo Valley, CA. Magglos serves as chief executive officer and president.<br />
<strong>Menu</strong> Positioning |<br />
Features wide variety of freshly prepared Mexican-style foods including burritos, “baja-style” tacos, taquitos, quesadillas and<br />
tostadas. Self-serve salsa bar. All-you-can-drink self-serve beverage and iced tea station featured as well. Takeout<br />
approximately 50% sales. Check Averages: $7–$7.50.<br />
Expansion Plans |<br />
Baja Fresh Mexican Grill operator opened its first restaurant in the Philadelphia market. (NRN Daily NewsFax 11/26/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
36
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Baja Fresh introduced a Lighten Up! summer menu that emphasizes lower fat and calories as well as more protein and fiber.<br />
The six offerings are: chicken and vegetarian Bare Burritos, Enchiladas Verano, Grilled Veggie Tacos, a Side by Side chicken<br />
and salad combo, Mahi Mahi and Shrimp Ensalada. Nutritional information will also appear on the menu and in handouts in<br />
the restaurant. (PR Newswire)<br />
Baja Fresh added two low-carbohydrate dishes to its menu. Chicken Picado ($7.95) is grilled chicken tossed with green<br />
peppers, onions and salsa, then topped with melted cheese and salsa creama. A steak version is priced at $8.50. (NRN Daily<br />
NewsFax 11/17/03)<br />
Franchise Activity |<br />
Baja Fresh partnered with Inspired Mexican Cuisine to open a Chicago unit in early January. The group plans to open 16<br />
Chicago area units over the next five years. (NRN Daily NewsFax 12/22/03)<br />
Personnel |<br />
Gregory Dollarhyde, Chief Executive Officer<br />
Donald Breen, Chief Financial Officer<br />
Steve Heeley, Senior Vice President of Operations<br />
Kevin Golding, Vice President of Purchasing<br />
Eugene Cameron, Vice President of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
37
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
A recent study from Tufts University revealed that although many consumers perceive menu items in the quick-casual<br />
segment to be healthier than traditional fast-food, some of those foods are higher in both fat and calories. According to its<br />
research, a McDonald’s Quarter Pounder with Cheese has less fat and calories than both Panera’s Smoked Ham & Swiss<br />
sandwich and Baja Fresh’s Steak Burrito. It also revealed that Jack in the Box’s Chicken Fajita Pita contained less than half<br />
the fat and calories of Au Bon Pain’s Chicken Caesar Wrap and a regular-sized McDonald’s hamburger and six-inch turkey<br />
breast sub from Subway both have less calories and fat than a traditional vegetable sandwich on multigrain bread at Panera.<br />
(Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
38
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Wendy’s International has begun offering Baja Fresh as a franchise opportunity to its internal roster of franchisees, which<br />
could accelerate expansion of the brand. Thus far, three franchisees have been chosen to develop Baja units although many<br />
others have been turned away. The company’s requirements include financial and operational soundness and locations that<br />
won’t impact Wendy’s units within a given market. There are currently 210 Baja Fresh restaurants, including 112 franchised<br />
stores. (RB 5/15/03 p19)<br />
Baja Fresh Mexican Grill will grow to 700 units within five years, owner Wendy’s International has predicted. Those units would<br />
have an average unit volume of $1.5 million and put the chain over the $1 billion sales mark. After opening 17 new Baja stores<br />
in the first quarter, it has 226 in 23 states. A total of 100 new outlets are planned for 2003. The brand is working on a<br />
freestanding prototype that will be 2,500 sq.ft.–3,000 sq.ft. When it acquired Baja Fresh, Wendy’s stated its intention to create<br />
a national chain. The quick-casual brand is among the first Mexican chains to enter the Northeast market, with a unit expected<br />
to open in downtown Boston in July. At the end of 2002, 116 of its stores were located in California. Amongst the operators<br />
with which it has signed development agreements are three Wendy’s franchisees. The company said its Wendy’s developers<br />
must meet several requirements before being accepted to open Baja outlets, including having built out the Wendy’s brand in<br />
their markets. Separately, Baja Fresh launched a summer menu featuring lean, high-protein and high-fiber items. Included on<br />
the “Lighten Up!” menu are chicken and vegetarian Bare Burritos, Enchiladas Verano, Grilled Veggie Tacos, and Mahi Mahi<br />
Ensalada. Prices range from $3.80–$5.95. (RB 6/15/03 p34;NDNF 6/25/03)<br />
Baja Fresh Mexican Grill reported same-store sales decreased 6.8% for the second quarter. The company expects long-term<br />
sales growth to increase 2% –3%. (NRN Daily NewsFax 9/22/03)<br />
Baja Fresh is expanding into the Northeast. It already opened three units in Boston earlier this year and plans to open its first<br />
Long Island, NY, locations in September. Later that month, an opening was slated for Syosset, NY. It is also expanding its<br />
presence in New Jersey, with units in Ocean and East Brunswick slated for September. In addition, the first Baja Fresh in<br />
Philadelphia, is expected to open by year’s end. (FIR 8/25/03 p4)<br />
Wendy’s International expects to open between 560 and 605 stores during 2003. During the first six months of this fiscal year,<br />
it opened 177 new units of Wendy’s, Tim Hortons and Baja Fresh. At the end of June, it had a total of 8,934 domestic and<br />
international stores. (FER 9/03 p14)<br />
Baja Fresh added two low-carbohydrate offerings to its menu. Chicken Picado ($7.95) is grilled chicken tossed with green<br />
peppers, onions and salsa and topped with melted cheese and Salsa Creama. It also is available in a steak version ($8.50). In<br />
other news, Baja Fresh opened its first restaurant in the Philadelphia market in Abington, PA. The chain has three more units<br />
under construction in the Philadelphia area in Montgomeryville, Springfield and Conshohocken. (NDNF 11/26/03; NRN<br />
11/24/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
39
Bakers Square<br />
Headquarters<br />
400 W. 48 Ave., Denver, Colorado 80216 USA<br />
Tel: (303) 296 2121 Fax: (303) 297 0677<br />
www.bakerssquarerestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 222,569 220,000 218,566<br />
Company-owned ($000) 222,569 220,000 218,566<br />
Franchised ($000) - - -<br />
U.S. Number of Units 148 148 150<br />
Company-owned 148 148 150<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,504 1,465 1,457<br />
Concept Positioning |<br />
Bakers Square—Restaurant and Bakery are family-oriented coffee shops specializing in freshly baked pies. Lunch, dinner and<br />
snacks are served. Takeout accounts for 25% of sales.<br />
All items are prepared on-premise. The batter for some of the rolls and muffins is prepared at a central location. Frozen fruit<br />
pies and pie shells for cream pies are made at production facilities and final production of cream pies is done at a number of<br />
satellite facilities.<br />
Units are freestanding and sized about 4,200 sq.ft. with seating for 118. Exteriors are brick, stucco and rough-sawn cedar with<br />
a red tile roof; the interior has a contemporary design with ample natural lighting, high open-beam ceilings, clear-glass lighting<br />
and decorative quarry tile floors. A "Bakery Theater" has been added to the entry areas in many units, bringing the act of<br />
baking into the dining experience. Exterior remodeling was necessary for this addition.<br />
The concept was internally developed by The Pillsbury Co. in 1970 under the name Poppin Fresh Pies. In May 1983, VICORP<br />
acquired the chain for $38 million, with Pillsbury retaining the Poppin Fresh name. VICORP changed the name to Bakers<br />
Square—Restaurant and Bakery. In 2001, parent Vicorp Restaurants merged with affiliates of Goldner Hawn Johnson &<br />
Morrison Inc. and BancBoston Capital, taking the company private.<br />
Current management includes Joseph Trungale, president and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: fruit and cream pies and other fresh baked goods including muffins, breads and cookies; bundles entree with<br />
piece of pie. Entrees include such specialties as chicken Alfredo, shrimp marinara and seafood fettuccine in addition to<br />
hamburgers, sandwiches, chili and a variety of salads. "Square Deal Meals"—a series of 6 entrees per day part ranging from<br />
tortillas with scrambled eggs to barbecue chicken and a variety of burgers; accounts for 20% of menu mix. Breakfast features<br />
omelets, eggs Benedict and 3 varieties of quiche.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
40
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Baker’s Square expanded its pasta options with a limited-time Great Tastes of Italy menu. The rollout signals the chain’s<br />
increasing sophistication and emphasizes upgraded ingredients. Shrimp and Sun-Dried Tomato Pasta is enhanced with black<br />
olives and cavatappi pasta, while red peppers, onions and bacon are used to flavor Artichoke Chicken Pasta. Finally, the<br />
Chicken Pasta Fromagio features four cheeses: American, Cheddar, mozzarella and Parmesan. Priced from $6.99–$8.99, the<br />
dishes will be offered for two months and complement the chain’s core Italian offerings: Grilled Chicken Primavera, Baked<br />
Lasagna and Florentine Chicken Alfredo. (Restaurant Business Daily News)<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Comfort foods are being updated with more unique ingredients as midscale operators work to update their menus and make<br />
them more appealing. While traditional foods are still the norm, there has been increasing movement toward upgraded and<br />
fresher ingredients, bold flavor and even ethnic influences. Examples include: ■ Caribbean Chicken Salad—teriyaki-glazed<br />
chicken breast, red peppers, Mandarin oranges, red and green onions, shredded carrot and tortilla straws served over spinach<br />
with Mandarin-orange dressing, Perkins ■ Slow-Roasted Turkey Focaccia—turkey breast, Swiss cheese, lettuce, tomatoes,<br />
cucumbers and creamy Caesar dressing, Bakers Square ■ Mango-Habanero Grilled Chicken Breasts—two chicken breasts<br />
with tangy mango-chile sauce and fresh pineapple, King’s Family Restaurants ■ Slim Jim—ham, Swiss cheese, lettuce,<br />
tomatoes and special sauce on grilled Grecian bread, Big Boy ■ California Omelet—eggs, Cheddar cheese, tomatoes, olives<br />
and crumbled bacon topped with sour cream and avocado wedges, Carrows. (Restaurants & Institutions, 8/1/03, p13)<br />
Personnel |<br />
Robert Kaltenbach, Chief Operating Officer<br />
Peter Pascuzzi, Vice President of Operations<br />
John Stocchero, Vice President of Operations<br />
Cheryl Ahlbrandt, Vice President of Marketing<br />
News & Other |<br />
Vicorp Restaurants Inc. owner BancBoston Capital sold the company to Wind Point Partners, a Southfield, MI-based private<br />
equity firm, in a $225.5 million leveraged-buyout deal. Denver-based Vicorp owns and franchises more than 370 Village Inn<br />
and Bakers Square family-dining restaurants. The chain was acquired in May 2001 by BancBoston, Goldner Hawn Johnson &<br />
Morrison and Fairmont Capital Inc. for $174 million. (NDNF 6/19/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
41
<strong>RISE</strong> COMPANY PROFILE<br />
Vicorp Restaurants’ new chief executive plans a menu revamp and unit expansion of the company’s Village Inn and Bakers<br />
Square chains. Debra Koenig, who joined the company in June after 25 years with McDonald’s Corp., comes on board<br />
following the acquisition of the 371-unit family-dining company by Wind Point Partners, a private equity firm based in Chicago.<br />
New menu items are using upscale ingredients such as portabello mushrooms and spinach. Vicorp added eight units in fiscal<br />
2002 and is on track to add 14 more in fiscal 2003. Future growth will primarily be company-operated units. New prototype<br />
designs for both 233-unit Village Inn and 148-unit Bakers Square will be used for the majority of new development. There<br />
currently are six Bakers Square restaurants with the new look and 24 Village Inn units with a fresh design. The new prototypes<br />
are designed to help drive dinner business. Village Inn units with the new design are performing 30% better during dinner<br />
hours than older Village Inn outlets, according to the company. In addition, refurbishing and remodeling is planned for the<br />
interior and exterior of aging units. (NRN 7/28/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
42
Baskin-Robbins<br />
Headquarters<br />
14 Pacella Park Drive P.O. Box 317, Randolph, Massachusetts 02368 USA<br />
Tel: (781) 961 4020 Fax: (781) 963 2913<br />
www.baskinrobbins.com<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 546,000 507,678 578,671<br />
Company-owned ($000) - 159 337<br />
Franchised ($000) 546,000 507,519 578,334<br />
U.S. Number of Units 2,579 2,387 2,439<br />
Company-owned - 2 4<br />
Franchised 2,579 2,385 2,435<br />
International Sales ($000) 391,000 355,000 335,549<br />
International Units 2,125 2,294 2,172<br />
Average Sales/Unit ($000) 212 213 84<br />
Concept Positioning |<br />
Baskin-Robbins is the largest ice cream franchise operation in the world, with 4,700 stores (more than 2,300 in the U.S.). Dean<br />
Foods Company manufactures and distributes Baskin-Robbins ice cream. In two territorial franchise areas, ice cream is<br />
produced and distributed by Alpenrose Dairy or Klink Brothers. All Baskin-Robbins ice cream is made according to the<br />
company's recipes and specifications.<br />
Baskin-Robbins’ stores offer a full line of frozen treats from its signature ice cream flavors, including non-fat, low-fat and nosugar-added,<br />
to frozen yogurt ice cream and cake creations and a line of beverages including its popular Cappuccino Blast<br />
and BR Smoothies. The customer base spans all demographic groups. Usually open from 11 a.m. to 10 p.m., stores occupy<br />
900-1,500 sq.ft. and are located in blocks of retail shops or in shopping centers. Units feature seating at booths and/or<br />
individual tables and are refurbished as needed on an ongoing basis. Some units also have drive-through window service. In<br />
addition, Baskin-Robbins has a presence in nontraditional outlets including convenience stores, airports and universities.<br />
Earnings are derived from royalty.<br />
Baskin-Robbins has also been a pioneer in multi-brand with Dunkin' Donuts and Togo's stores. More than 600 are open.<br />
Dunkin' Donuts, acquired in 1990, as well as Togo’s Eatery, acquired in 1997, are owned by Baskin-Robbins’ parent company,<br />
Allied Domecq. Plans call for additional multi-brand locations to open that will include either of the two brands with a Baskin-<br />
Robbins.<br />
In 1945, Irvin Robbins opened his first ice cream store in Glendale, CA. It was originally called the Snowbird, but when<br />
Robbins joined forces with his brother-in-law, Burton Baskin, who had his own ice cream stores, Baskin-Robbins was born. In<br />
1959, the company started franchising outside California. Allied Domecq acquired the chain in 1973.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
43
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: more than 100 ice cream flavors rotate through stores annually as well as frozen yogurt, ice cream and cake<br />
creations and frozen beverages.<br />
Expansion Plans |<br />
Allied Domecq Quick Service Restaurants will add about 25 Baskin-Robbins and Dunkin’ Donuts stores in the Albuquerque,<br />
NM, area. Franchisees already operate 10 Dunkin’ Donuts and 23 Baskin-Robbins there. (NDNF 2/19/03)<br />
Dunkin’ Donuts expects to open about 450 new stores this year, a 75-unit increase over last year’s 375 domestic outlets. Last<br />
year, 100 of those openings were part of combo or trombo locations that combined the doughnut concept with Baskin Robbins<br />
and Togo’s Great Sandwiches. All three brands are owned by Allied Domecq Quick Service Restaurants. (FER 4/03 p9)<br />
<strong>Menu</strong> Development |<br />
Baskin-Robbins and Dunkin’ Donuts co-branded stores in the Northeast are offering Dunkin’ Donuts Coffee Ice Cream for the<br />
summer. It is made with Dunkin’ Donuts coffee beans. (Nation’s Restaurant News, 7/21/03, p39)<br />
Technology |<br />
Allied Domecq has signed an agreement with SkillSoft PLC calling for development, deployment, hosting and administration<br />
services in support of the chain's global e-learning solution. The first phase of the solution will be the training initiative targeted<br />
to franchise management and employees, addressing topic such as store management and customer service. The learning<br />
curricula, expected to be available to all three Allied Domecq chains (Dunkin' Donuts, Baskin Robbins and Togo's) by July, will<br />
be accessible through on-site computers owned by franchisees and outfitted with high-speed Internet connections. (Company<br />
Release)<br />
Allied Domecq agreed to use Vocus Inc.'s online software to direct and manage corporate communications initiatives. Based in<br />
Lanham, MD, Vocus's software is designed to increase efficiency of media campaign management and city expenses tied to<br />
media directories, printed materials and internal "clip books." Allied Domecq is the parent company of Baskin-Robbins',<br />
Dunkin' Donuts and Togo's Eatery. (Nation's Restaurant News 7/14/03 p44)<br />
Personnel |<br />
Jon Luther, Chief Executive Officer<br />
Carolyn O'Keefe, Vice President of Marketing<br />
Joe Adney, Director of Marketing<br />
News & Other |<br />
Baskin-Robbins said its franchisees in the Northeast will co-brand 100 new outlets with Dunkin’ Donuts by summer’s end. Both<br />
concepts are owned by Allied Domecq Quick Service Restaurants, which said that the franchisees’ total multibranding<br />
investment would be between $15 million and $17 million. The launch of the 100-store initiative was timed to coincide with<br />
Baskin-Robbins’ annual “Free Scoop Night,” which features free ice cream for a four-hour period. (NDNF 4/29/03)<br />
Baskin-Robbins plans to open 100 franchised stores in the Northeast along with sister brand Dunkin’ Donuts by the end of the<br />
summer. The concepts are part of Allied Domecq Quick Service Restaurants. The units will join the 60 dual-branded Baskin-<br />
Robbins and Dunkin’ Donuts outlets operating throughout the Northeast. The 100 openings represent an investment of $15<br />
million to $17 million. (NRN 5/19/03 p126<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
44
<strong>RISE</strong> COMPANY PROFILE<br />
Dunkin’ Donuts, Baskin-Robbins and Togo’s will be featured in the new All Day umbrella brand to be rolled out in a 2,300-sq.ft.<br />
prototype that was slated to open in late September in Burbank, IL. Allied Domecq Quick Service Restaurants (ADQSR) will<br />
decide on a schedule for future units and markets during the fourth quarter of fiscal 2003. A retrofit package for existing stores<br />
will be offered sometime next year. Exterior awnings tout each brand and the building and signage display a circular amalgam<br />
of each logo in the design of a clock, which reads “All Day” below. Inside, the clock motif is prominently featured in a wallpaper<br />
“mural” and on tabletops as well. Floor tiles are light-hearted, with some depicting ice-cream sprinkles and others coffee<br />
beans. The new unit makes use of synergies in several areas. The same oven will be used to bake Dunkin’ Donuts’ muffins<br />
and scones as well as Togo’s bread products and the same toasters and workstations will be used to prepare both breakfast<br />
and lunch sandwiches. The cashier stations will use one POS system. ADQSR is targeting combined sales for the new unit of<br />
between $1 million and $1.2 million. (R&I 9/15/03 p73)<br />
Baskin-Robbins for fiscal 2003, reported same-store sales decreased 4.5%. (NRN Daily NewsFax 10/28/03)<br />
Baskin-Robbins for fiscal year 2003, reported same-store sales decreased 4.5%. (Nation’s Restaurant News 11/10/03 p44)<br />
Baskin-Robbins is being retooled to make it more relevant, according to parent Allied Domecq QSR’s chief executive Jon<br />
Luther. Plans call for development of a freestanding unit and a new title: “Baskin-Robbins, Do Yourself a Flavor.” In<br />
development is a toppings wall at which customers would help themselves. Four of the prototype stores were expected to be<br />
open by year’s end. (CL 11/03 p53)<br />
Allied Domecq QSR will continue co-branding Baskin-Robbins and Dunkin’ Donuts and is targeting markets such as Charlotte,<br />
NC, and Cleveland. In 2002, Baskin-Robbins was incorporated into 100 Dunkin’ Donuts sites in New England. (RB 11/15/03<br />
p26)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
45
Benihana<br />
Headquarters<br />
8685 N.W. 53 Terrace, Miami, Florida 33166 USA<br />
Tel: (305) 593 0770 Fax: (305) 592 6371<br />
www.benihana.com<br />
Ownership: Public<br />
Segment: Full Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Haru<br />
Sushi Doraku<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 215,000 187,000 187,000<br />
Company-owned ($000) 185,000 160,000 160,000<br />
Franchised ($000) 30,000 27,000 27,000<br />
U.S. Number of Units 77 70 70<br />
Company-owned 65 56 56<br />
Franchised 12 14 14<br />
International Sales ($000) 4,000 7,000 2,400<br />
International Units 7 4 4<br />
Average Sales/Unit ($000) 2,960 2,650 2,857<br />
Concept Positioning |<br />
Benihana of Tokyo is a chain of Japanese-style steakhouses that feature communal dining around eight-seat cooking tables.<br />
"Showmen Chefs" slice, season, and cook vegetables, meats, and seafood at a steel grill on the patron’s table. In addition, the<br />
company owns and operates two other smaller Asian concepts: Sushi Doraku and Haru.<br />
Benihana is open for lunch and dinner and patrons may order single entrees or combinations. Specific items may differ,<br />
depending upon local market needs. Specialty drinks also are featured. Most units are freestanding and a typical unit occupies<br />
8,000 sq. ft., with a typical restaurant having 18 teppanyaki tables and total seating for as many as 178 patrons in the dining<br />
room, plus up to 120 additional patrons in the lounge. The decor features Oriental artifacts, prints, and music. In newer units,<br />
and existing units where space is available, rooms serve traditional Japanese cuisines such as tempura. The chain has also<br />
added full sushi bars to many of its restaurants.<br />
The company has also launched a Benihana Grill prototype (around 3,500–4,000 sq. ft.) for use in smaller markets.<br />
Its Sushi Doraku concept specializes in "kaiten" style sushi. At a kaiten bar, customers select their favorite items from a<br />
continuously revolving conveyor system. The first Sushi Doraku is located in an entertainment complex.<br />
Its Haru concept offers sushi along with other Japanese dishes that are available for eat-in as well as takeout and delivery.<br />
Some 45% of sales are takeout. During the first quarter of 2003, the company had five units, having grown from two in 2001.<br />
Rocky H. Aoki, former Olympic wrestler and son of a Japanese restaurateur founded the Benihana chain in New York in 1964.<br />
The first franchise was granted in 1969, and the first overseas unit opened in 1977. In 1997, the company acquired 9-unit<br />
Rudy’s Restaurant Group, Miami, and has converted all of those units to its Benihana brand. In 1999, Benihana Inc. acquired<br />
an 80% interest in Haru Holding Corp, which operates the Haru chain.<br />
Current management includes Joel A. Schwartz, president and chief executive officer, and Taka Yoshimoto, executive vice<br />
president restaurant operations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
46
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: grilled Japanese-style steaks, seafood and chicken available as single or combination entrees. Sushi bars<br />
promote midweek sales. Yakitori entrees (grilled skewered meat, vegetables and seafood dishes) also added. Dinners include<br />
appetizer, soup and salad. Check Average: $22.80 Sushi Doraku: Sushi Check Average: $11.42 Haru: Sushi Check Average:<br />
$25.78<br />
Expansion Plans |<br />
RA Sushi Bar and Restaurant will be expanded by Benihana Inc., which plans to open three more of the outlets in its current<br />
fiscal year, which began in April. The RA Sushi brand, acquired by Benihana in December, currently consists of four units in<br />
the Phoenix metropolitan area. It appeals to a younger crowd and does about 33% of total volume in alcoholic beverage sales.<br />
RA Sushi outlets occupy a smaller space than Benihana units, about 3,900 sq.ft.–4,100 sq.ft. The concept will be expanded<br />
primarily with in-line locations in suburban areas. Benihana anticipates RA’s annual average unit volumes will range from $2<br />
million to $3.3 million. Benihana’s plans also call for also expanding its five-unit Haru sushi brand outside of New York City<br />
with a new branch in Philadelphia next year. (Nation’s Restaurant News)<br />
Promotion Plans |<br />
Benihana broke a multimillion-dollar campaign in September with action-oriented TV spots supporting the tag, “An experience<br />
at every table.” The “Sword Fight” spots aired in 26 markets nationwide, including Los Angeles, San Francisco, Houston and<br />
Miami. (Brandweek 9/15/03 p5)<br />
Personnel |<br />
Joel Schwartz, Chairman<br />
Michael Burris, Chief Financial Officer<br />
Taka Yoshimoto, Senior Vice President of Operations<br />
Kevin Aoki, Vice President of Marketing<br />
Douglas Medina, Director of Purchasing<br />
News & Other |<br />
Benihana Inc. plans to open three RA Sushi Bar and Restaurant outlets in its current fiscal year, which began in April. Its RA<br />
Sushi brand, acquired in December, currently consists of four units in the Phoenix metropolitan area. It appeals to a younger<br />
crowd and does about 33% of total volume in alcoholic beverage sales. The concept will be expanded primarily with in-line<br />
locations in suburban areas. Benihana anticipates its annual average-unit volumes will range from $2 million to $3.3 million.<br />
The company’s core Benihana teppanyaki restaurants, ranging between 4,000 sq.ft. and 10,000 sq.ft., generate average-unit<br />
volumes of just over $3 million, with some reaching up to $5 million or $6 million. Benihana’s expansion plans also call for<br />
expanding its five-unit Haru sushi brand outside of New York City with a new branch in Philadelphia next year. (NRN 6/2/03<br />
p4)<br />
Benihana Inc. reported a 5.8% increase in first-quarter earnings despite a small decline in same-store sales and higher food<br />
costs. (Nation’s Restaurant News 09/08/03 p12)<br />
Benihana Inc. for the period ended October 12, reported revenues increased 5.4% to $44.2 million compared to the same<br />
period a year ago. Same-store sales decreased 2.6%. (NRN Daily NewsFax 11/14/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
47
Bennigan's<br />
Headquarters<br />
6500 International Pkwy., Plano, Texas 75093 USA<br />
Tel: (972) 588 5000 Fax: (972) 588 5653<br />
www.bennigans.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 646,000 565,000 524,590<br />
Company-owned ($000) 426,000 400,000 383,000<br />
Franchised ($000) 220,000 165,000 141,590<br />
U.S. Number of Units 285 280 259<br />
Company-owned 175 175 168<br />
Franchised 110 105 91<br />
International Sales ($000) 35,000 30,000 28,100<br />
International Units 23 16 16<br />
Average Sales/Unit ($000) 2,253 2,200 2,279<br />
Concept Positioning |<br />
Bennigan's Irish American Grill & Taverns are full-service, casual-dining restaurants that market primarily to customers<br />
between the ages of 21 and 35. More than 75 items are on the menu. A variety of alcoholic beverages, including some 100<br />
beers from some 17 countries of which 10–60 are available on tap, are featured; approximately 30% of sales is attributed to<br />
them.<br />
The company has launched four prototypes. Units are largely freestanding, located in relatively affluent suburban areas and<br />
feature a turn-of-the-century motif, with fans, stained glass, and Tiffany-style lamps. They average 6,400–7,100 sq.ft. and<br />
seating for 217–260 patrons.<br />
Bennigan's was developed by Steak and Ale in 1976. Steak and Ale (S&A Restaurant Corp.) was acquired by Pillsbury in 1976<br />
and became an indirect wholly owned subsidiary of Grand Metropolitan, PLC, in January 1989. Grand Met sold the subsidiary<br />
in February 1989 to Benale Holdings Corp., a privately held company in which Metromedia Co., the parent of Bonanza and<br />
Ponderosa, controlled 15% of the stock. In January 1992, Metromedia acquired all Benale Holdings Corp.'s stock.<br />
<strong>Menu</strong> Positioning |<br />
Specializes in hamburgers including 1/2-lb versions and sandwiches ranging from classic All American Burger to Buffalo<br />
Chicken, Turkey O’Toole, The Reuben and The County Cork Club sandwiches. Also menus steaks such as The Bleu Cheese<br />
Filet and Riley’s Ribeye, soups, salads, pastas including Asiago Chicken Pasta and fajitas as well as Health Club line of<br />
reduced fat entrees such as Stir Fry Chicken. Appetizers include Buffalo Wings, Crab Cakes, Broccoli Bites, Fajita Chicken<br />
Quesadillas, and Spinach Artichoke Dip with Toasted Flatbread. Time Crunch Lunch program expanded to 7 days/week;<br />
guarantees meal delivery in 15 minutes after order. <strong>Menu</strong> Prices: $5.79–$13.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
48
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Asian noodle bowls are appearing on a wide range of menus. The bowls feature several different components in one dish,<br />
combining protein, sauce, starch and vegetables. As an added bonus, preparation tends to be relatively fast and easy. As an<br />
ever-exp anding number of chefs experiment with bowls, traditional Asian operators such as Hibachi-San are looking to make<br />
their own bowl offerings more interesting by focusing on authentic Asian flavors. The chain’s most popular dish is<br />
chicken/teriyaki bowls served with steamed broccoli, cabbage, carrots, zucchini and fresh-grilled chicken, all coated in teriyaki<br />
sauce. Other offerings range from shrimp tempura to Hawaiian chicken and vegetarian. The chain is currently looking to<br />
develop more traditional Asian-flavored bowls such as sukiyaki to enhance its authentic image; it is also developing dishes<br />
with a Japanese curry sauce that is a bit milder than Indian curry. Even concepts not specifically devoted to Asian cuisine are<br />
experimenting with bowls. Legal Sea Foods recently supplemented its seafood-focused menu with a Soba Noodle Vegetable<br />
Broth. The blend of whole vegetables, vegetable broth, soba noodles, ginger, spices and fresh herbs is receiving an<br />
enthusiastic response from more adventurous diners. Other examples of non-Asian chains launching Asian-inspired bowls<br />
include: ■ Pacific Noodle Bowl—shrimp, scallops and skinny noodles tossed with whole-roasted garlic and fresh watercress in<br />
a light lemon-butter sauce, Bennigan’s ■ Rice Noodles Tossed in Tamarind Sauce—with green onions, garlic, chilies, tofu, egg<br />
and crushed peanuts; garnished with shrimp or chicken, The Cheesecake Factory ■ Hula Bowl—greens with chargrilled<br />
chicken breast, pineapple, Mandarin oranges, rice noodles, carrots and tomatoes, Max & Erma’s ■ Bangkok Chicken Bowl—<br />
seasoned chicken tossed with quick-seared fresh vegetables and udon noodles in garlic-soy-ginger sauce, Rock Bottom<br />
Brewery. (Chef)<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Bennigan’s has rolled out a Green Plate Special promotion that offers appetizers and entrees that range in price from $2.99–<br />
$7.99. Specials include Pub Chips and Salsa; Irish Haystack (a pile of thinly sliced battered onion rings); Spaghetti with Basil<br />
Marinara Combo and Fettuccine Alfredo Combo (both served with soup or salad); O’Malley’s Single Pork Chop served with<br />
two side dishes; and a Death by Chocolate dessert. The chain also introduced a revamped kids menu called the “Lads and<br />
Lassies” menu. It includes kid-friendly fare such as Bowl O’Spaghetti and Mac ‘n’ Cheese. (Nation’s Restaurant News, NRN<br />
Daily NewsFax)<br />
Upscale ingredients are increasingly common on chain menus as operators work to combat slowing growth and heated<br />
competition. As a result, some of the latest trends in fine-dining are filtering down to casual-dining at a much greater pace.<br />
Examples are plentiful. T.G.I. Friday’s is now serving a Roma tomato bruschetta, while Bahama Breeze offers ahi tuna<br />
ceviche. Bennigan’s is now offering filet mignong in a port wine demi-glaze, while Chili’s has its own version of the molten<br />
chocolate cake popularized by chef Jean-Georges Vongerichten. (Wall Street Journal)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
49
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Bennigan’s recently introduced two new entrees to showcase more premium ingredients and chef-driven techniques. Its Blue<br />
Cheese Filet ($17.99) is an 8-oz. beef filet finished with a port wine demi-glaze, garnished with crisp fried onions and almonds<br />
and served with garlic mashed potatoes and fresh green beans. Flaherty’s Famous Fish ($12.99) is pan-seared Asian<br />
whitefish topped with a lemony beurre blanc and fried onion-and-caper relish. The dish is served with pesto orzo and green<br />
beans. (Restaurant Business 6/15/03, p32)<br />
Personnel |<br />
Mark Bromberg, Chairman<br />
John Todd, Chief Executive Officer<br />
Bill Spae, President<br />
Eugene Caldwell, Chief Financial Officer<br />
Matt Diana, Vice President of Purchasing<br />
Ted Beaman, Vice President of Finance<br />
John Beck, Vice President of Marketing<br />
News & Other |<br />
Metromedia Restaurant Group is selling its Bonanza, Ponderosa and Steak and Ale chains to focus on its 305-unit Bennigan’s<br />
brand. Acquiring the nearly 550 units is Apex Steakhouse Acquisition Partners of Irving, TX. Terms of the deal were not<br />
disclosed by the two private companies. The sale includes 69 Bonanza and 412 Ponderosa restaurants, most of which are<br />
franchised, and the 66 Metromedia-owned units of Steak and Ale. Apex is headed by Mark Bromberg, a veteran of East Side<br />
Mario’s, and John Todd, a former Gateway Computers executive. Upon completion of the sale, Doug Barber, president of<br />
Metromedia Family Steakhouse, and Bill Spae, president of Steak and Ale, will join Apex Restaurant Group. The Family<br />
Steakhouse group includes the Bonanza and Ponderosa brands. Metromedia Restaurant Group said that the sale of the three<br />
concepts will allow it to be more focused on its casual-dining Bennigan’s Irish American Grill & Tavern brand. (NRN 3/24/03<br />
p1)<br />
Bennigan’s Irish American Grill & Tavern will grow by 25–30 units this year, with four or five of those to be company-operated<br />
units. It would like to increase the number of company-operated unit openings to 10 or 15 per year. In 2002, Bennigan’s<br />
opened 22 outlets, of which about 19 were franchised. Parent Metromedia Restaurant Group announced in March that it was<br />
selling its almost 550 Bonanza, Ponderosa and Steak and Ale restaurants to Steakhouse Acquisition Partners to focus on its<br />
305-store Bennigan’s. The company currently operates about 175 units, with the remainder—including 22 international units—<br />
franchised. (NRN 5/26/03 p1)<br />
Metromedia Restaurant Group will sell its Bennigan’s chain to Apex Restaurant Group, which agreed in March to acquire<br />
Metromedia’s Bonanza, Ponderosa and Steak and Ale chains. Terms of the deal were not disclosed. Apex owners Mark<br />
Bromberg and John Todd will serve as chairman and chief executive, respectively, of the new MGR-Apex management. As of<br />
the end of 2002, the Bennigan’s Irish-American Grill and Tavern system had 285 restaurants, of which 110 were franchised.<br />
The four brands being acquired by Apex represent nearly 800 restaurants. Apex also manages the Left at Albuquerque,<br />
Semolina, Harrigan’s and the new CJ’s Roadhouse chain concepts. (NDNF 9/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
50
<strong>RISE</strong> COMPANY PROFILE<br />
CJ’s Roadhouse owner Pinnacle Restaurant Group plans to open several more of the casual restaurants within the next six<br />
months in Texas and Oklahoma. Signature offerings include flame-roasted chicken, barbecued beef ribs, sandwiches and<br />
salads. The concept is being run by Apex Restaurant Group, which recently purchased Metromedia Restaurant Group’s<br />
Ponderosa, Bonanza and Steak and Ale brands and most recently, its Bennigan’s brand as well. Pinnacle also owns the<br />
Harrigans Chop House Grill chain, which filed for Chapter 11 bankruptcy protection earlier this year. (R&I 8/1/03 p13)<br />
United Airlines will conduct another test of branded food sales from restaurants on board selected flights beginning October<br />
31. The 90-day test will be run on more than 200 flights daily in and out of United’s Chicago and Denver hubs. Each flight will<br />
last more than 3.5 hours. Offerings will include branded recipes from T.G.I. Friday’s, Bennigan’s and Hard Rock Café and will<br />
be prepared by LSG Sky Chefs and Gate Gourmet. (NDNF 9/26/03)<br />
Bennigan’s Grill and Tavern partnered with in-flight caterer Gate Gourmet on a 90-day test of onboard foodservice with United<br />
Airlines. The test, encompassing more than 200 flights a day from 10 cities, will feature Bennigan’s Kilkenny County chicken<br />
salad as a menu option. (NRN Daily NewsFax 11/4/03)<br />
Au Bon Pain and Bennigan’s Grill & Tavern have partnered with in-flight caterer Gate Gourmet on a 90-day test of onboard<br />
foodservice with United Airlines. The test, encompassing more than 200 flights a day from 10 cities, will feature Au Bon Pain’s<br />
Asiago cheese bagel and Bennigan’s Kilkenny County Chicken Salad as menu options. (NDNF 11/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
51
Bertolini's Authentic Trattoria<br />
Headquarters<br />
350 W. Hubbard St., Chicago, Illinois 60610 USA<br />
Tel: (312) 923 0030 Fax: (312) 923 0090<br />
www.mortons.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 10,000 13,000 18,882<br />
Company-owned ($000) 10,000 13,000 18,882<br />
Franchised ($000) - - -<br />
U.S. Number of Units 4 4 5<br />
Company-owned 4 4 5<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,500 2,450 3,776<br />
Concept Positioning |<br />
Bertolini’s Authentic Trattoria offers authentic Italian cuisine inspired by Italian village restaurants and kitchens. with a focus on<br />
freshness.<br />
Units are open seven days a week for lunch and dinner, with dinner accounting for some 68% of revenues in fiscal 2000.Units<br />
currently average 7,000–7,500 sq. ft., with seating for 175–200. Each is designed to resemble an Italian street festival with<br />
rustic yellows and ambers accented with mahogany bars and brightly painted murals. Exhibition kitchens allow patrons to<br />
watch their meals being prepared, and many locations include a full dessert/gelato bar. Tables are covered with white paper,<br />
and crayons are provided to test artistic talents. Contemporary Italian music complements the atmosphere.<br />
Morton’s Restaurant Group opened the first Bertolini’s at the Forum Shops in Las Vegas in May 1992.<br />
<strong>Menu</strong> Positioning |<br />
Signature items include Penne Arrabiata with spicy tomato sauce, basil, black olives and pecorino cheese and Petto di Pollo—<br />
a grilled marinated chicken breast with grilled polenta, roasted garlic and oregano. Features soups, salads, fresh pastas with<br />
homemade sauces, wood-fired pizzas, panini sandwiches, and a daily risotto. Desserts feature hand-made gelato in over 130<br />
flavors including pistachio, white chocolate and tiramisu. Beverages include collection of coffees and cappuccinos. Full liquor<br />
service including extensive wine list. <strong>Menu</strong> Prices: $7.95–$14.95. Check Averages: $20.75<br />
Personnel |<br />
Bertucci’s Inc. hired Kathy Kiely as vice president of marketing. Previously, Kiely was general manager for Deutsch<br />
Advertising’s Boston office. (Nation’s Restaurant News 11/3/03 p33)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
52
Bertucci's<br />
Headquarters<br />
5 Clock Tower Place, Maynard, Massachusetts 1754 USA<br />
Tel: (978) 897 1400 Fax: (978) 897 1125<br />
www.bertuccis.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 162,320 150,111 143,901<br />
Company-owned ($000) 162,320 150,111 143,901<br />
Franchised ($000) - - -<br />
U.S. Number of Units 80 74 72<br />
Company-owned 80 74 72<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,149 2,018 1,998<br />
Concept Positioning |<br />
Bertucci's Brick Oven Pizzerias are full-service, casual dining restaurants that offer high quality, moderately priced Italian food.<br />
Units are open seven days a week for lunch and dinner, appealing to families and an adult market. All menu items are<br />
available for take-out and/or delivery, with those purchases currently accounting for some 24% of sales.<br />
Bertucci’s specializes in a wide assortment of Italian regional pasta, chicken, veal and seafood dishes, salads, and premium<br />
brick oven pizza. The chain's signature pizza is prepared in brick ovens that bake at unusually high temperatures, enabling the<br />
production of a light crust and preservation of natural flavors and moisture of toppings. The company makes its own dough,<br />
sauces and toppings in each unit, thus preparing its menu fresh each day.<br />
Units can be either freestanding or within existing buildings. Decor of each restaurant was re-imaged in 2001-2002 and<br />
features a relaxing Tuscan atmosphere. The restaurants vary in size with current units averaging 6,200 sq.ft. and providing<br />
seating for around 170 customers. The restaurants have contemporary European-style open kitchens that center on the brick<br />
ovens. Outdoor patios at selected sites further enhance the décor and casual dinning atmosphere. In 2001-2002, utilizing a<br />
standard prototype of 5,500 sq.ft. and seating for 150, eleven new units were built.<br />
The first Bertucci's was opened in 1981. Expansion began in 1985. Its first public offering was made June 1991. In late 1998,<br />
parent Bertucci’s, Inc. was acquired by NE Restaurant Co., Inc. and taken private.<br />
In early 2001, NE Restaurant sold its franchised Chili’s and On the Border holdings in order to focus on the Bertucci’s brand.<br />
Concurrently, it changed its corporate name to Bertucci’s Corporation.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
53
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bertucci’s signature items include brick oven-baked pastas, seafood, chicken and veal entrees and premium pizzas. Calzones,<br />
appetizers, soups, salads, and desserts are also offered. Full liquor service available, including an award winning Italian<br />
focused wine list. Liquor, beer and wine constitute 15% of all in house sales. Entrees including chicken, veal, seafood, and<br />
pasta account for 34% of all in house sales mirroring that of Bertucci’s signature pizzas. <strong>Menu</strong> Prices: $4.24–$13.99. Check<br />
Averages: $11.05.<br />
Expansion Plans |<br />
Red Sauce, the newest concept from Bertucci’s founder Joey Crugnale, currently has four units in Boston suburbs. Two of<br />
those were converted from his more-upscale Naked Fish concept. Two more locations are planned for next year but no more<br />
conversions are slated. Red Sauce units are about 6,000 sq.ft. and checks average $15. (Restaurant Business)<br />
<strong>Menu</strong> Development |<br />
Italian cuisine has gained mainstream status on chain menus. Given its popularity, chains are working not only to develop<br />
more authentic offerings at Italian concepts but also to supplement menus in concepts not devoted to that cuisine with pastas<br />
and other dishes showcasing Italian ingredients or influences. Olive Garden is continually working to adapt authentic Italian<br />
favorites for American tastes. Its most recent dishes include two versions of ravioli. One is stuffed with shrimp and crab in a<br />
lobster-based sauce, while the other features ground beef, sausage and chicken. It is also expanding into Italian-influenced<br />
seafood dishes. Its Salmon Piccata is grilled salmon with white-wine-and-lemon sauce accompanied by roasted vegetables.<br />
Other innovations include: ■ Ricotta Cheesecake Italiano—ricotta and cream cheeses baked with a hint of lemon and served<br />
with raspberry coulis, Bertucci’s ■ Polla Rosa Maria—fire-roasted chicken breast stuffed with fontina cheese and prosciutto,<br />
topped with mushrooms and basil-lemon butter sauce, Carrabba’s Italian Grill ■ Italian Nachos—mozzarella cheese,<br />
pepperoni, Italian sausage, pepperoncini and pizza sauce on pasta chips, Old Chicago ■ Pappardelle Pasta—with shrimp,<br />
saffron, basil, chiles and arugula, Piatti ■ Twice Baked Lasagna with Meatballs—slowly baked then topped with provolone and<br />
finished in a woodburning oven, Romano’s Macaroni Grill. (Restaurants & Institutions, 8/1/03, p66)<br />
Personnel |<br />
Benjamin Jacobson, Chairman<br />
Raymond Barbrick, President<br />
Kurt Schnaubelt, Chief Financial Officer<br />
Kathleen Kiely, Senior Vice President of Marketing<br />
Mark Eason, Vice President of Operations<br />
Steve Scrima, Director of Purchasing<br />
Bertucci’s Inc. hired Kathy Kiely as vice president of marketing. Previously, Kiely was general manager for Deutsch<br />
Advertising’s Boston office. (Nation’s Restaurant News 11/3/03 p33)<br />
News & Other |<br />
Taco Bueno plans to open eight units this year and 12 in 2004. The new units are expected to be similar to a store in<br />
Brownwood, TX, that opened in December, which features a slightly smaller building of 2,300 sq.ft. and 72 seats. Most spacesaving<br />
occurred in the kitchen. The 125-store chain was acquired in 2001 by Jacobson Partners of New York, owners of<br />
Bertucci’s Brick-Oven Pizzeria, which teamed up with other investors to buy the chain from CKE Restaurants. In other news,<br />
Taco Bueno’s new steak or chicken fajitas platter grew to 8% of the sales mix within weeks of its introduction. At $4.49, the<br />
dish is the menu’s most expensive item. Last year, 119-unit Taco Bueno raised prices 1.5% but comparable sales grew 11%<br />
through May. (NRN 8/4/03 p4; CL 7/03 p2; SF 7/03 p17)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
54
Big Bowl<br />
Headquarters<br />
6820 LBJ Fwy., Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
www.bigbowl.com<br />
Ownership: Public<br />
Segment: Full Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 33,808 27,064 18,000<br />
Company-owned ($000) 33,808 27,064 18,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 16 9 6<br />
Company-owned 16 9 6<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,800 2,750 3,500<br />
Concept Positioning |<br />
A Pan-Asian concept that caters to the family, Big Bowl has built its reputation on fresh entrees and a casual atmosphere. The<br />
menu features a variety of traditional Asian items, including pot stickers, kung pow chicken, stir-fry and a variety of noodle<br />
dishes. Big Bowl also features unique beverages such as its Fresh Ginger Soda and Hibiscus Iced Tea, as well as a fullservice<br />
bar that features exotic cocktails like the frozen Mai Tai and Golden Buddha Margarita.. It also has a strong children’s<br />
menu, and entertainment for the kids, including crayons and a kid’s fortune cookie.<br />
A Chicago-based Lettuce Entertain You Restaurant until its sale to Brinker Restaurants Inc in 2001, Big Bowl features an open<br />
décor with full bar and lighting fixtures with rice paper shades and entrees under $10. The first Big Bowl opened in Chicago a<br />
decade ago and has grown into 16 locations including six in Chicago and its suburbs, and Minnesota, Texas, Virginia,<br />
Colorado and North Carolina.<br />
<strong>Menu</strong> Positioning |<br />
Big Bowl features contemporary Asian cuisine. Offerings include a variety of handmade noodles, chicken pot stickers, handrolled<br />
Vietnamese summer rolls, and seasonal stir-fry dishes prepared with local produce. Its broths, pastes, dipping sauces<br />
and condiments are made from scratch. An interactive stir-fry bar allows patrons to “design” their own entree, choosing from<br />
an array of vegetables, choice of sauces, meats and noodles or rice. Checks average $10.50 at lunch and $14.50 at dinner.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
55
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Asian-inspired dishes showcasing a combination of Asian cooking styles are prepared to order at Big Bowl Asian Kitchen, a<br />
growing Chicago-based concept. The restaurant works to strike a balance between traditional Asian cooking traditions and the<br />
freshness and flavor consumers are currently demanding. The menu features several authentic Asian foods, ranging from<br />
potstickers, wontons and Asian rolls to rice and noodle dishes, with each dish given a detailed description to guide guests as<br />
they become exposed to new flavors. A recent menu also noted several new menu items. Starters now include Lettuce Wraps<br />
with chicken, water chestnuts and Bibb lettuce for wrapping served with sesame hoisin sauce and fiery Sichuan sauce. Hot &<br />
Sour soup was also introduced. The blend of chicken, tofu, egg drop and fresh ground pepper in a tangy, spicy broth is billed<br />
as the Chinese cure for the common cold. Rice dishes were supplemented with several new choices as well, including Crispy<br />
Orange Peel Chicken, Thai Basil Chicken, Teriyaki Chicken and Crispy Orange Peel Shrimp & Chicken. (Company <strong>Menu</strong>)<br />
Vietnamese pho is an Asian noodle soup that is gaining ground as consumers gain awareness thanks to concepts such as Big<br />
Bowl, Chin’s Asia Fresh and Atlanta’s Doc Chey’s. Rice noodles, broth and sliced or pulled meat form the base of the dish,<br />
which is typically garnished with fresh basil, fresh chili, lime wedges or kaffir lime leaves or bean sprouts. Condiments such as<br />
Vietnamese fish sauce, hoisin sauce or sriracha (“rooster” chili sauce) are also added by diners according to their individual<br />
flavor preferences. Typical meats are beef brisket, tendon, tripe and sliced rare beef, though it may also be made with eggs or<br />
beef meatballs called bo vien. Some shops have also begun offering seafood variations to target Hispanics and other non-<br />
Vietnamese audiences. Recipes tend to vary significantly in the U.S. The version at Buddha’s Belly in Los Angeles uses a<br />
base of aromatic chicken stock that is flavored with traditional spices, fried onion and cilantro. Other components are dried rice<br />
vermicelli, tofu cubes and radicchio. Doc Chey’s adds carrots and a tangy yu choy sum as well as thicker rice noodles<br />
because clients in that market tend to want more components in their soup. (Nation’s Restaurant News, 6/30/03, p166)<br />
News & Other |<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
56
Big Boy<br />
Headquarters<br />
4199 Marcy St., Warren, Michigan 48091 USA<br />
Tel: (810) 759 6000 Fax: (810) 755 8220<br />
www.bigboy.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 600,000 580,000 625,000<br />
Company-owned ($000) 80,000 80,000 100,000<br />
Franchised ($000) 520,000 500,000 525,000<br />
U.S. Number of Units 412 405 405<br />
Company-owned 56 55 55<br />
Franchised 356 350 350<br />
International Sales ($000) 61,000 62,500 75,000<br />
International Units 50 50 50<br />
Average Sales/Unit ($000) 1,400 1,360 1,818<br />
Concept Positioning |<br />
Big Boy is a family-oriented, full-service chain of restaurants that dates back to the 1930s. Largely freestanding, units average<br />
about 5,600 sq. ft., with seating for approximately 160 patrons. Units feature the Big Boy character on the facade; along with<br />
signature red and white checkered bricks at the entryway. Within the unit is Dolly’s Market, an area that includes a gift shop,<br />
bakery and home products retail section.<br />
Bob Wian, Big Boy's founder, entered the restaurant business in 1936 when he bought a 10-seat diner in southern California.<br />
The early units were curbside diners known for their double-decker hamburgers and their chubby, pompadour mascot. In<br />
1952, John, Fred, and Louis Elias became its first franchisees. In 1972, Marriott Corp. purchased the business. In 1987, Elias<br />
Brothers acquired the chain from Marriott Corp. and became its exclusive worldwide franchiser.<br />
In October 2000, parent Elias Bros. Corp. filed Chapter 11 bankruptcy. At the same time, it announced that Robert Liggett, Jr.,<br />
a Detroit-based investor, had formed a new company that had agreed to purchase the Big Boy holdings. The deal was<br />
completed by the end of 2000 under the corporate umbrella of Big Boy Restaurants International.<br />
<strong>Menu</strong> Positioning |<br />
Standard items: steaks, chicken, seafood, ham, liver and onions, eggs, hamburgers, sandwiches, pancakes, soups, salad bar,<br />
breakfast and fruit bars. Home Cookin' entrees (meatloaf, ham steak, beef tips, pork chops and country-fried steak) include<br />
potato, roll and coleslaw or add $1.99 for soup, salad and fruit bars. Health Smart selections have nutritional information<br />
included on menu. No alcoholic beverages served. Check Averages: $6.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
57
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Comfort foods are being updated with more unique ingredients as midscale operators work to update their menus and make<br />
them more appealing. While traditional foods are still the norm, there has been increasing movement toward upgraded and<br />
fresher ingredients, bold flavor and even ethnic influences. Examples include: ■ Caribbean Chicken Salad—teriyaki-glazed<br />
chicken breast, red peppers, Mandarin oranges, red and green onions, shredded carrot and tortilla straws served over spinach<br />
with Mandarin-orange dressing, Perkins ■ Slow-Roasted Turkey Focaccia—turkey breast, Swiss cheese, lettuce, tomatoes,<br />
cucumbers and creamy Caesar dressing, Bakers Square ■ Mango-Habanero Grilled Chicken Breasts—two chicken breasts<br />
with tangy mango-chile sauce and fresh pineapple, King’s Family Restaurants ■ Slim Jim—ham, Swiss cheese, lettuce,<br />
tomatoes and special sauce on grilled Grecian bread, Big Boy ■ California Omelet—eggs, Cheddar cheese, tomatoes, olives<br />
and crumbled bacon topped with sour cream and avocado wedges, Carrows. (Restaurants & Institutions, 8/1/03, p13)<br />
Franchise Activity |<br />
Big Boy Restaurants closed a franchised unit in St. Ignace, MI, for substandard conditions and noncompliance with chainwide<br />
standards. The closing marks the 10th unit to be shuttered for similar reasons in the past three years. (NRN Daily NewsFax<br />
12/30/04)<br />
Technology |<br />
Big Boy Restaurants has unveiled an electronic cash card program. Replacing Big Boy's paper gift certificates, the cards are<br />
available at Big Boy units and through the chain's Web site, where it is also rechargeable. Stored Value Systems and Gift Card<br />
Solutions developed and will manage the program for Big Boy. Additionally, the two companies will also track card redemption<br />
rates, activation and purchasing trends. (Nation's Restaurant News 8/11/03 p70)<br />
Personnel |<br />
Anthony Michaels, Chief Executive Officer<br />
Paul Black, Chief Financial Officer<br />
Linda Pederson, Vice President of Operations<br />
Cal Campbell, Director of Purchasing<br />
News & Other |<br />
Big Boy for the first-quarter, reported same-store sales increased 4.8%. (NRN Daily NewsFax 10/20/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
58
Black-eyed Pea<br />
Headquarters<br />
1210 Blair Ville Road, Madison, Tennessee 37115 USA<br />
Tel: (615) 227 1234 Fax: (615) 227 1220<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 100,000 100,000 118,000<br />
Company-owned ($000) 100,000 100,000 118,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 48 48 93<br />
Company-owned 48 48 93<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,000 2,000 1,268<br />
Concept Positioning |<br />
Black-eyed Pea emphasizes quality food, a comfortable atmosphere, friendly service and reasonable prices and seeks to<br />
attract a broad range of customers, including families and business people. Units are open daily for lunch and dinner seven<br />
days a week, typically from 11 a.m. to 10 p.m. Customers receive unlimited helpings of freshly baked breads and large<br />
servings of iced tea and soft drinks with complimentary refills. It also has an active takeout program.<br />
The restaurants, largely freestanding, average 4,000–6,000 sq. ft. and have seating for 160–210 customers in the dining room<br />
and an additional 10 at counters/bars. The units currently have a turn-of-the-century, "general store" look that is designed to<br />
appeal to the chain's broad customer base. The focal point of each restaurant is a mural depicting the history of the area in<br />
which that restaurant is located. Interior walls and shelves are decorated with quilts, canned goods, toys, antique farm tools<br />
and cooking utensils.<br />
Following its declaration of bankruptcy in 2001, which resulted in the closing of a number of restaurants, a menu enhancement<br />
program to add variety and boost check averages was undertaken. An interior remodeling program has also been initiated for<br />
all units to upgrade the dining room ambience by adding interior walls for privacy and noise reduction as well as improving the<br />
lighting, seating and overall decor package. In addition, the company is focusing on operating multiple units in its core<br />
markets.<br />
Black-eyed Pea U.S.A., Inc. was acquired by Unigate PLC in 1986. In July 1996, DenAmerica (now Phoenix Restaurant<br />
Group) completed its acquisition of the chain from Unigate for $65 million.<br />
Current management includes Robert M. Langford, chairman and chief executive officer; W. Craig Barber, president; and<br />
Jeffery M. Pate, chief financial officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
59
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Entrees include chicken-fried steak, grilled chicken breast, meatloaf, pot roast, pork chops, roast turkey, fried chicken, catfish,<br />
baked white fish, barbecue, vegetable plate, hamburgers and sandwiches, appetizers, soups and salads. Daily specials such<br />
as chicken potpie, fried fish or chicken and dumplings also offered. Dinners include choice of 2 or 3 vegetables out of 12<br />
offered Freshly baked items include cornbread, homemade pies & fruit cobblers. Alcoholic beverages available; some 2% of<br />
revenues <strong>Menu</strong> Prices: $3.89–$10.99. Check Averages: $8.87.<br />
Personnel |<br />
Robert Langford, Chief Executive Officer<br />
Will Costello, Director of Purchasing<br />
Craig Barber, President<br />
Sam Pyeatt, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
60
Blimpie Subs & Salads<br />
Headquarters<br />
1775 The Exchange, Atlanta, Georgia 30339 USA<br />
Tel: (770) 984 2707 Fax: (770) 952 3558<br />
www.blimpie.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 266,000 291,000 310,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 266,000 291,000 310,000<br />
U.S. Number of Units 1,666 1,852 1,912<br />
Company-owned - - -<br />
Franchised 1,666 1,852 1,912<br />
International Sales ($000) 5,000 10,000 9,650<br />
International Units 44 61 59<br />
Average Sales/Unit ($000) 199 218 -<br />
Concept Positioning |<br />
Blimpie International, Inc. operates a chain of franchised sandwich and salad shops under the name Blimpie. Food is prepared<br />
fresh and mainly for takeout. Drive-through service is available at some locations, as is home delivery. Serving lunch and<br />
dinner, the lunch segment generates the highest volume of business. More than 50% of its regular stores and all nontraditional<br />
locations also offer breakfast.<br />
In 1997, Blimpie International added two concept brands to its portfolio: Maui Tacos, a Mexican operation that features tacos,<br />
burritos and charbroiled entrees, obtained through a 75% buyout from its owners. The Maui Tacos International subsidiary<br />
also co-brands its Smoothie Island concept with Maui Tacos units. The second brand, Pasta Central, features Italian-style<br />
baked pasta and entrees as home-meal replacement alternatives and is co-branded with Blimpie units. All are franchised<br />
operations.<br />
Most shops are in suburban and downtown locations with a large front window and occupy 1,200 sq.ft., with 30-40 seats. Instore<br />
ovens, recent additions, allow units to offer on-premise baked goods. New distribution formats include “Grab ‘n Go”<br />
refrigeration cases, carts, kiosks and vending machines. The most recent decor package features red, white, yellow and blackcheckered<br />
designs, carpeting and lighted pictures of menu items. Uniforms and a sandwich-shaped logo are yellow and red on<br />
a field of green.<br />
Blimpie was established in Hoboken, NJ, in 1964 by Anthony Conza with Angelo Baldassare and Peter DeCarlo. Baldassare<br />
left a year later and eventually formed B & B Best Buy Foods, which is one of Blimpie's major suppliers. In 1976, the company<br />
split into Blimpie of New York, headed by DeCarlo, and Blimpie International, Inc., headed by Conza. The two enterprises<br />
function as separate but related companies, each operating in different parts of the country. As of March 1993, Blimpie<br />
International stock began trading through NASDAQ.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
61
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item—6- or 12-inch submarine sandwiches with freshly cut meats and cheese, shredded lettuce, onion, tomato<br />
sauce Also other hot & cold sandwiches, chili & salads as well as wraps. Beverages include espresso, Italian sodas and<br />
smoothies. Non-traditional locations include breakfast of bakery goods and egg-based breakfast sandwiches. Check<br />
Averages: $3.75. Pasta Central: baked pasta entrees, gourmet pizzas, salads and desserts.<br />
<strong>Menu</strong> Development |<br />
Blimpie Subs & Salads has expanded its menu with a new line of Grilled Subs. Flavors offered systemwide are Ultimate Club;<br />
Beef, Turkey & Cheddar; and Buffalo Chicken Melt. Regional options include Cuban and Reuben sandwiches. The launch is<br />
the latest in a series of menu innovations by Blimpie over the last several months. It previously debuted larger portions and a<br />
line of sauces in flavors such as Chipotle Chili, Wasabi Horseradish and Sun Dried Tomato. (PR Newswire)<br />
Blimpie Subs & Salad launched a new Super Sub sandwich as a tie-in to the broadcast of “Comic Book Superheroes<br />
Unmasked” on the History Channel. It features London broil roast beef, bacon, Cheddar cheese, tomatoes and onions, topped<br />
with chipotle chili GourMayo sauce on parmesan bread. (Nation’s Restaurant News, 6/23/03 p16)<br />
Blimpie is offering a Blackened Chicken Creole Sub as a limited-time offer. Priced from $4.29–$4.59, it features spicy chicken<br />
tenders, provolone cheese, cucumber slices, tomatoes, sweet onions, olive oil and red wine vinegar on sesame bread.<br />
(Nation’s Restaurant News 10/6/03 p38)<br />
Blimpie introduced a “Carb-Counter <strong>Menu</strong>” at its outlets on Long Island, NY. The menu features new sandwiches, Atkins chips<br />
and SoBe beverages, and also lists nutritional information for select sauces, toppings and dressings. The company plans to<br />
roll the menu out systemwide by March 30, 2004. (Nation’s Restaurant News Daily Specials 10/3/03)<br />
Blimpie added a low-carbohydrate wrap to its Carb-Counter <strong>Menu</strong>. The new item is available with a tortilla shell for an<br />
additional 50¢. (NRN Daily NewsFax 12/17/03)<br />
Blimpie added a low-carbohydrate wrap to its Carb Counter <strong>Menu</strong>, which rolled out in October. Diners can order the low-carb<br />
tortilla with any of the meats and cheeses on the Carb Counter menu for an additional 50¢. (NRN.com, 12/16/03)<br />
Personnel |<br />
Jeffrey Endervelt, Chairman<br />
Brain Lane, Chief Financial Officer<br />
Bruce Kolbinsky, Vice President of Operations<br />
Mark Mears, Vice President of Marketing<br />
Jennifer Townsend, <strong>Menu</strong> Development/R&D<br />
News & Other |<br />
Blimpie Subs & Salads is in the midst of a six-month-long effort to offer hospitality training to franchisees and their more than<br />
8,500 front-line employees. Six “hospitality vans” are visiting each of the chain’s nearly 1,800 locations in 44 states to provide<br />
face-to-face hospitality training. The training tour is part of an effort to revive the nearly 40-year-old brand, which is privately<br />
owned by a group headed by Jeffrey Endervelt, Blimpie president and chief executive, and Tony Conza, the company’s<br />
founder. The revival effort is being called “Great Taste, Great Surroundings and Great Service.” Endervelt said the company<br />
will evolve into a more upscale, quick-casual operator within the sandwich segment. (R&I 5/1/03 p30; NRN 5/19/03 p164)<br />
San Lorenzo (CA) Unified School district is the only district in the nation to have its own Burger King franchises. Its school<br />
board recently signed a new five–year contract for the venture. Sales at the Burger King units at Arroyo and San Lorenzo high<br />
schools will total $180,000 this year. About 8.5% of sales go to Burger King and the remainder covers operating costs and<br />
contributes to the district’s foodservice budget. The district also operates a Blimpie Subs & Salads unit. (R&I 7/15/03 p82; FSD<br />
7/15/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
62
<strong>RISE</strong> COMPANY PROFILE<br />
Blimpie International introduced the “Blimpie Carb-Counter <strong>Menu</strong>” at its Long Island stores. It features new sandwiches, Atkins<br />
chips and selections from beverage brand SoBe, each of which is available individually or in combo meals. This is the first<br />
stage of a planned national rollout of the new menu items. All locations are pegged to roll out the menu by March 30, 2004.<br />
Blimpie Subs & Salads operates more than 1,600 locations. (NDNF 10/3/03)<br />
Diets are becoming popular branding opportunities for restaurants, celebrity chefs and fitness gurus. With the recent<br />
partnerships between chef Rick Bayless and Burger King, as well as Oprah’s personal trainer, Bob Greene, and McDonald’s,<br />
aligning with and promoting branded diets has become a new way to attract the nation’s millions of dieters. Private diet<br />
companies are also teaming with operators, as noted by agreements between Weight Watchers and Applebee’s and Atkins<br />
Nutritionals and Blimpie Subs & Salads, which stocks the diet company’s low-carb Cruncher Chips. (NRN 11/3/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
63
Bob Evans<br />
Headquarters<br />
3776 South High Street, Columbus, Ohio 43207-0863 USA<br />
Tel: (614) 491 2225 Fax: (614) 492 4958<br />
www.bobevans.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 897,441 849,234 785,719<br />
Company-owned ($000) 897,441 849,234 785,719<br />
Franchised ($000) - - -<br />
U.S. Number of Units 509 481 454<br />
Company-owned 509 481 454<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,875 1,825 1,730<br />
Concept Positioning |<br />
Bob Evans Farms, Inc. is engaged in two general lines of business: the production and marketing of pork sausage, fresh<br />
salads and related products and the operation of full service, family style restaurants under the names of Bob Evans<br />
Restaurants, Owens Family Restaurants, and Bob Evans Restaurant and General Stores.<br />
Each unit has seating for between 129 and 150, while a smaller prototype for malls seats 98. The units are freestanding,<br />
located near motels, strip shopping malls, and interstate highways. They are generally open from 6:00 a.m. to 10:00 p.m., with<br />
extended closing times on Friday and Saturday. (Some 63% of its total revenues are generated during the breakfast and lunch<br />
day parts.) Typical interiors are decorated in solid woods and soft colors. Exteriors carry a farm image.<br />
The restaurant and general store operation debuted in early 1991. The General Store menu is also slightly different, changing<br />
its meatloaf to a beef and sausage combination and serving items such as chicken and dumplings, pot pies, turkey and<br />
dressing, grilled chicken salad and barbecue pork sandwiches. Side dishes include turnip greens with bacon and baked<br />
apples.<br />
The concept also has an extensive gift shop called the Corner Cupboard and plans to incorporate the area into all new<br />
restaurants.<br />
In 1948, Bob Evans started making his own sausage to supply a truck stop restaurant in Gallipolis, OH. In 1963, the company<br />
was formed through a public stock offering. The first unit of Bob Evans Farms Foods was a fast-food shop, but the format was<br />
quickly revamped into a full-service concept.<br />
Bob Evans does not franchise, nor will it borrow money for expansion. Capital to develop has been generated by the<br />
manufacturing segment of the firm as well as restaurant division profits. The company is traded on the NASDAQ under the<br />
symbol BOBE.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
64
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: Bob Evans & Owens brand sausage products. Breakfast served all day: eggs, biscuits, French toast, waffles<br />
including a new Belgian variety, hotcakes, fried cornmeal mush. Entrees include ham, ground beefsteak, chicken and ribs,<br />
catfish and sandwiches (barbecue pork #1 on menu), salads and soups. Dinners include three of following: green beans,<br />
applesauce, hash browns, fries, salad, coleslaw or cottage cheese with peach. Check Averages: $5.75–$6.85.<br />
<strong>Menu</strong> Development |<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Bob Evans recently added a Strawberry Supreme Pie to its menu. It features a cream cheese filling topped with fresh<br />
strawberries and whipped topping. (Nation’s Restaurant News, 6/16/03, p89)<br />
Bob Evans expanded its egg skillets to the lunch and dinner dayparts. Its Pot Roast Skillet features slow-roasted beef, home<br />
fries, shredded Cheddar cheese, Hollandaise sauce and diced scallions, while the Chicken Cordon Bleu Skillet is an openfaced<br />
omelet with grilled chicken, home fries and Monterey Jack cheese covered with Hollandaise sauce and topped with<br />
diced scallions. Prices range from $6.69–$6.99. The chain will also devote its summer advertising to promoting its Wildfire<br />
Sauce, which is featured on ribs, chicken and pork, as part of an effort to boost evening market share. Each of the dinner<br />
entrees is served with two side items, such as homestyle mashed potatoes and gravy, grilled garden vegetables and<br />
applesauce. (Nation’s Restaurant News, 6/16/03, p89)<br />
Bob Evans is set to introduce two new entrees on its new Dinner Sensations menu. A 16-oz. T-bone steak and 8-oz. salmon<br />
fillet join variations of pork chops and chicken that have long been popular at the chain. Prices will range from $8.29 for a twopiece<br />
chicken entrée to $11.99 for the T-bone. Each comes with two sides and a choice of either Garlic Butter or Wildfire<br />
Sauce (the chain’s branded barbecue sauce). Bob Evans is also reworking its presentation in hopes that consumers will view<br />
the chain as more interesting and exciting as well as a destination for dinner. Entrees will now be served on plates with wider<br />
rims, and onion rings will be used as a topping for entrees. Sides will also be plated with entrees instead of being served in<br />
separate dishes. (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 8/20/03)<br />
Bob Evans has been working to upgrade its menu in an effort to reposition itself in the “family casual” niche at the upper end of<br />
the midscale segment. The chain has been working to add value by upgrading presentation, portion size and ingredients.<br />
Another goal has been expanding the flavor palette and protein options. One challenge has been appealing to core customers,<br />
who often automatically order signature dishes such as the chain’s Country Fried Steak, Chicken Pot Pie and Meat Loaf &<br />
Gravy. The Pasta and Stir-Fry section is one area that has been revamped. The Grilled Chicken Stir-Fry was upgraded with a<br />
more authentic sauce and premium ingredients such as sugar snap peas, red cabbage and ginger. The line was also<br />
extended with vegetarian and steak versions. Stir-fry sales have since tripled. Proteins were also enhanced to better compete<br />
with casual-dining chains. Sirloin Steak Tips debuted as a limited-time offer and proved so popular, it was added to the menu’s<br />
“classic” section. The dish combines a half-pound of marinated sirloin steak tips with sautéed mushrooms and onions over a<br />
bed of egg noodles. The dish is topped with thick beef gravy and served with a garden salad. This fall Bob Evans debuted a<br />
Dinner Sensations program featuring entrees with generous portions, full-flavored sauces and fresh vegetables and garnishes.<br />
Offerings such as a 16-oz. T-bone steak ($11.99) and grilled pork chops ($10.79) are now cooked to order and served with<br />
garlic-herb butter or barbecue sauce for added flavor. For the next collection of Dinner Sensations, the chain is considering<br />
more seafood options. Codfish, catfish and salmon have all sold well as limited-time offers. (Restaurant Business 10/15/03<br />
p52)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
65
Personnel |<br />
Stewart Owens, Chairman<br />
Donald Radkoski, Chief Financial Officer<br />
L. Merl Beery, Director of Purchasing<br />
Scott Colwell, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bob Evans Farms Inc. reported same-store sales increased 1.2%, reflecting a 2.6% price increase for the four weeks ended<br />
August 22. (Nation’s Restaurant News 9/15/03 p12)<br />
Bob Evans Farms Inc. reported same-store sales increased 0.6% for the four weeks ended September 19 compared to the<br />
same period a year ago. (NRN Daily NewsFax 9/30/03)<br />
Bob Evans for the four weeks ended November 21, reported that same-store sales rose 2.1%. (NRN Daily NewsFax 12/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
66
Boddie-Noell Enterprises, Inc.<br />
Headquarters<br />
1021 Noell Lane P.O. Box 1908, Rocky Mount, North Carolina 27804 USA<br />
Tel: (252) 937 2800 Fax: (252) 937 4527<br />
www.bneinc.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Texas Steakhouse & Saloon<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 359,814 210,000 180,000<br />
Company-owned ($000) 359,814 100,000 85,000<br />
Franchised ($000) - 110,000 95,000<br />
U.S. Number of Units 350 120 92<br />
Company-owned 350 58 44<br />
Franchised - 62 48<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - 1,724 1,931<br />
Concept Positioning |<br />
Boddie-Noell is the largest and one of the oldest franchisees of Hardee's Food Systems, Inc. Its units offer drive-in, sit-down<br />
and carryout service and some are open 24 hours a day.<br />
Through the years, the organization has also made valuable contributions to the Hardee's operation, including the<br />
development of high-rise signs and a number of menu items; the biscuit breakfast, for example, was introduced in all Boddie-<br />
Noell units in 1978 and adopted by Hardee's in 1980.<br />
The company also operates a number of Texas Steakhouse & Saloons. All company units are currently located in North<br />
Carolina; franchised units are in the Virginia and West Virginia markets. It also operates BBQ and Ribs Co. and Highway<br />
Diner. Additionally, through its real estate division, BNE Land and Development, the company invests in and develops<br />
residential and commercial real estate in North Carolina and Virginia.<br />
Mayo and Nick Boddie with their uncle, the late W. Carleton Noell, opened their first Hardee's franchise in Fayetteville, NC,<br />
(Hardee's fifth store) in 1962. In 1987, Boddie-Noell sold both land and buildings associated with 47 of its Hardee's units to<br />
Boddie-Noell Properties Inc. and then leased the units back.<br />
Current management includes Bill Boddie, president.<br />
Personnel |<br />
Mayo Boddie, Chairman<br />
Bill Boddie, Chief Executive Officer<br />
W. Craig Worthy, Chief Financial Officer<br />
Jerry Allsbrook, Vice President of Marketing<br />
Tim Lane, Director of Purchasing<br />
Laura Joyner, <strong>Menu</strong> Development/R&D<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
67
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Boddie-Noell Enterprises signed a deal to open 25 units of Raving Brand’s Moe’s Southwest Grill concept in North Carolina<br />
and Virginia. Boddie-Noell operates 320 Hardee’s and 28 Texas Steakhouse & Saloon units in five southeastern states. It<br />
plans to develop the Moe’s brand in High Point and Winston-Salem, NC, and Newport News and Williamsburg, VA, over a<br />
five-year period. (NDNF 10/2/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
68
<strong>RISE</strong> COMPANY PROFILE<br />
Bojangles' Famous Chicken 'N Biscuits<br />
Headquarters<br />
9432 Southern Pine Blvd., Charlotte, North Carolina 28273 USA<br />
Tel: (704) 527 2675 Fax: (704) 523 6676<br />
www.bojangles.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 350,000 323,354 295,951<br />
Company-owned ($000) 135,000 149,795 151,039<br />
Franchised ($000) 215,000 173,559 144,912<br />
U.S. Number of Units 300 289 276<br />
Company-owned 116 149 156<br />
Franchised 184 140 120<br />
International Sales ($000) - - 1,070<br />
International Units - 3 3<br />
Average Sales/Unit ($000) 1,200 1,119 968<br />
Concept Positioning |<br />
The Bojangles' Famous Chicken 'N Biscuits chain is a quick service chain specializing in spicy fried chicken. It also features<br />
breakfast. Its chicken and biscuits are prepared on-premise from scratch. Breakfast represents about 40% of transactions.<br />
Most units are freestanding and average 3,500 sq.ft. They have a drive-through window and seating for 96 customers.<br />
Bojangles’ also has a nontraditional unit program for C-stores.<br />
The first Bojangles' opened in 1977. A year later, franchising began. It was privately held until its acquisition by Horn & Hardart<br />
in January 1982. In 1990, Horn & Hardart announced its restaurant operations were being sold to Sienna Holdings and<br />
InterWest Partners. In April 1998, a group of local Charlotte investors acquired the chain.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Cajun and Southern-style chicken and buttermilk biscuits; some 35% of sales. Also menus regular fried and<br />
chicken supremes, chicken fingers served with dipping sauce. Biscuits with sausage, egg and ham are served for breakfast.<br />
Other items: chicken and steak sandwiches, seasoned fries and rice, pinto beans, macaroni and cheese, corn-on-the-cob and<br />
coleslaw.<br />
Promotion Plans |<br />
Bojangles’ Famous Chicken ‘N Biscuits introduced six 30-second TV spots and point-of-purchase material supporting the tag<br />
“Gotta wanna needa getta hava Bojangles.” The promotion was developed to show how consumers crave the chain’s food.<br />
(NRN Daily NewsFax 10/22/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
69
Personnel |<br />
Joseph Drury, Chairman<br />
Tom Lewison, President<br />
Randy Pointdexter, Senior Vice President of Marketing<br />
Keith Rosenthal, Vice President of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bojangles’ Famous Chicken ‘n Biscuits expects 2003 to be its first profitable year since 1998. The chain has restructured<br />
management, improved store-level operations and cleanliness and implemented new food-safety practices. Bojangles’ 3,800sq.ft.<br />
prototype in Charlotte, NC, updates the brand’s look and places the signature fried chicken on the front line, where<br />
customers can see its freshness and quality. The company expects most of its growth to be via franchising and it is targeting a<br />
30/70 mix of company- to franchise-operated locations as it builds out existing markets. Of its current 308 units, 200 are<br />
franchised. A total of 40 new locations are slated to open this year, followed by 80–100 in both 2004 and 2005. And in related<br />
news, Bojangles opened in January a Bo-to-Go unit in a Charlotte office building. The 700-sq.ft. space offers typical Bojangle’s<br />
menu items of breakfast biscuit sandwiches, chicken sandwiches, wings and sides and introduces salads. It is yielding check<br />
averages of $2.35, compared to $4.51 at its traditional stores. The company expects most new Bo-to-Go locations to be<br />
franchised. (CL 8/03 p53; RB 9/1/03 p18)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
70
Boston Market<br />
Headquarters<br />
14103 Denver West Pkwy., Golden, Colorado 80401 USA<br />
Tel: (303) 278 9500 Fax: (303) 216 5550<br />
www.bostonmarket.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Boston Market’s Rotisserie Grill<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 650,000 627,100 626,000<br />
Company-owned ($000) 650,000 627,100 581,000<br />
Franchised ($000) - - 45,000<br />
U.S. Number of Units 662 657 707<br />
Company-owned 662 657 702<br />
Franchised - - 5<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,050 900 827<br />
Concept Positioning |<br />
Boston Market is a limited-service chain specializing home-meal replacement. It offers quick, convenient meals, featuring<br />
home-style entrees, fresh vegetables, sandwiches, salads, soups, side dishes and desserts. Boston Market restaurants<br />
combine the comfort of traditional home cooking with convenience and contemporary flair. Units are open for lunch and dinner.<br />
Everything is cooked from scratch and that includes its proprietary marinated rotisserie chicken. All are prepared with no<br />
artificial additives or flavorings.<br />
Units are located in heavy traffic, strip-shopping locations. In 2002 Boston Market completed a nationwide initiative to renovate<br />
all 650 of its restaurants. The result is warm, inviting dining rooms that offer a comfortable restaurant experience for customers<br />
seeking great food in a nice atmosphere. Highlights of the new dining rooms include booth seating and padded chairs with<br />
matching tables, attractive wedged partition walls with decorative plants to create intimate spaces for private conversation,<br />
warmer colors throughout the dining room, and softer lighting with modern light fixtures. The upgraded interior was planned in<br />
concert with the new grilled chicken menu item offerings.T<br />
he chain also helped facilitate the creation of Einstein/Noah Bagel Corp. In mid-1996, it converted its $120 million loan to a<br />
majority equity interest. Boston Chicken also announced the formation of Progressive Food Concepts, Inc. (PFCI) to explore<br />
ways to expand its brand into supermarkets.<br />
Boston Chicken owns around 85% of it.Boston Chicken dates back to 1985. The first restaurant was opened in Newtonville,<br />
MA, by Arthur Cores and Kip Kolow. In 1989, the two sold their menu and concept to George Naddaff, a 30-year veteran KFC<br />
franchisor. Franchising began in 1989. Its initial public offering was filed in late 1993. In early 1995, it announced a name<br />
change for its units to Boston Market to reflect an expansive menu, but reverted back to Boston Chicken in October 1998. In<br />
addition, in late 1998, the company filed Chapter 11 bankruptcy.<br />
In 2000, McDonald’s Corp. completed its acquisition of most of Boston Chicken’s holdings in a court approved reorganization<br />
plan. The deal includes 751 restaurants and franchise rights for 108 more. The name, once again, became Boston Market.<br />
Michael Andres is president and chief executive officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
71
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items Boston Market’s signature menu items include rotisserie-roasted, double-marinated chicken, turkey, ham and<br />
meatloaf, as well as a large selection of wholesome side dishes such as mashed potatoes and gravy, steamed vegetables,<br />
butternut squash, creamed spinach and cornbread. The menu also features hearty pot-pies and carver sandwiches. <strong>Menu</strong><br />
Prices: $3.49–$25.49. Check Averages: $8.52In 2002, it expanded its menu to include nine grilled chicken entrées, salads and<br />
sandwiches featuring boneless, white meat chicken. All items on the Boston Market menu can be ordered for lunch or dinner.<br />
Boston Market also caters events ranging from small gatherings of families and friends to large corporate events.<br />
<strong>Menu</strong> Development |<br />
Boston Market Corp. added a chicken cordon bleu item to its menu for a six-week promotion that will run through May 18.<br />
Available as a sandwich or entree, it features a boneless chicken breast, a slice of ham, Dijon cheese sauce and a<br />
breadcrumb topping. McDonald’s Corp.-owned Boston Market operates about 650 units nationwide. (NDNF 4/1/03)<br />
Boston Market is serving Chicken Cordon Bleu as a limited-time offer through May 18. The entrée features boneless, skinless<br />
chicken breast topped with a slice of ham, Dijon cheese sauce and golden crispy breadcrumbs. It is also available as a<br />
sandwich, served on a golden brown toasted roll with lettuce and Dijon mustard. Both the sandwich and entrée are priced at<br />
$6.49. (Company Release)<br />
Personnel |<br />
Michael Andres, Chief Executive Officer<br />
Greg Uhing, Chief Financial Officer<br />
Keith Robinson, Chief Marketing Officer<br />
Kristen Rau, <strong>Menu</strong> Development/R&D<br />
Bob Brickles, Vice President of Operations<br />
Tim Jordan, Director of Purchasing<br />
News & Other |<br />
Super Stop & Shop, a new store in Walpole, MA, includes a downsized Boston Market. Items can be carried out or eaten at a<br />
small seating counter. Even though other Stop & Shop areas throughout the store offer prepared foods, only the Boston<br />
Market counter offers seating. The store also includes a Dunkin’ Donuts section offering an array of fresh baked doughnuts<br />
and bagels, coffee and other beverages and prepared hot sandwiches. Boston Market has exclusivity on rotisserie chicken<br />
business in the store and Dunkin’ Donuts has exclusivity on doughnut sales. (Grocery Headquarters 2/03 p102)<br />
McDonald’s Corp. declined to comment on media reports that it will sell its nonburger chains, including Boston Market,<br />
Chipotle and Donatos Pizzeria. The three brands are grouped under its “Partner Brands” division. McDonald’s reportedly has<br />
contacted private equity firms about the possibility of selling a 50% to 60% stake in its nonburger concepts. One report said<br />
the company is looking for a deal in which it retains the right to buy back the interest in about five years. With a total of 1,083<br />
units, the partner brands had total 2002 sales of $1 billion. McDonald’s also declined to comment on rumors that it is planning<br />
another round of layoffs that could involve several hundred employees. In 2002, the company cut 600 corporate jobs and in<br />
2001, it reduced the number of divisions from five to three and eliminated 700 jobs at its headquarters in Oak Brook, IL.<br />
Another media report said the company is considering reducing the number of U.S. divisions from three to two, which would<br />
cut costs and centralize the company even further. (NRN 4/7/03 p1; FIR 3/24/03 p7)<br />
Donatos Pizzeria is searching for a new chief executive following the resignation of Bill Rose, a 30-year veteran of McDonald’s<br />
Corp., which owns the 180-unit pizza chain. McDonald’s has declined to confirm reports that it is exploring a sale of its three<br />
non-burger chains, including Chipotle and Boston Market. (NRN 5/5/03 p156)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
72
<strong>RISE</strong> COMPANY PROFILE<br />
Nation’s Restaurant News (NRN) recently announced the winners of its 2003 Hot Concepts! Awards. Having profiled each of<br />
the concepts soon after they hit the ground running, <strong>Technomic</strong> Information Services agrees with NRN’s choices and,<br />
naturally, we can’t help but examine what they teach us about the emerging chain business. The NRN 2003 Hot Concepts!<br />
are: • Fogo de Chao—four units; an all-you-can-eat Brazilian casual dining chain • Grand Lux Café—three units; an offshoot of<br />
The Cheesecake Factory featuring global cuisine • Pei Wei Asian Diner—21 units; P.F. Chang’s quick-casual pan-Asian<br />
concept • Raising Cane’s Chicken Fingers—12 units; a limited-service chain with a basic menu of chicken fingers • Smokey<br />
Bones BBQ—34 units; Darden Restaurants’ barbecue concept that has a sports bar theme • Ted’s Montana Grill—eight units;<br />
media mogul Ted Turner’s bar and grill concept featuring bison • Arby’s—3,300 units; while not an emerging concept, NRN<br />
recognizes how the chain has reinvented itself by developing its Market Fresh line of deli-style sandwiches and, more recently,<br />
a new prototype, cooking system and humorous ad campaign. At first glance, it is difficult to see one quality that these<br />
concepts share. But they each have successfully filled a niche in the chain restaurant industry, and they developed a clear<br />
identity backed by likable food. Whether a barbecue restaurant that offers sports-bar amenities or a bar and grill serving bison,<br />
these chains have been leaders in some way. For example, Pei Wei Asian Diner along with, of course, Pick Up Stix (78 units)<br />
have been forerunners in the promising quick-casual Asian category, and several chains are following, like Yan Can. In<br />
claiming a niche, emerging concepts always face and put forth challenges, such as convincing the public to try bison or a<br />
Brazilian buffet or to become regulars at a restaurant that stakes its entire business on one item, the chicken finger. Boston<br />
Market, often credited as one of the first quick-casual concepts, put forth a challenge to diners last month with its new concept<br />
Rotisserie Grill (profiled in this issue). The concept is elevating quick-casual’s image by serving diners’ meals on real china,<br />
upgrading decor and offering table service for desserts and alcoholic beverages. Yet it maintains quick-casual’s prices and<br />
general counter service. Will diners bite? The above-mentioned chains took risks and took the lead. With careful trend<br />
research, a quality product, and strong leadership, the gamble rarely seems as great as the final rewards.<br />
Boston Market debuted a new concept called Boston Market’s Rotisserie Grill in Tallahasee, FL, in early May. Offering limited<br />
table service, its menu includes Asian-citrus rotisserie chicken and roast sirloin. The 100-seat dining room’s centerpiece is an<br />
open-flame grill. Some units will offer beer and wine. The rotisserie-grill’s menu offers more than 50 items, including Southwest<br />
penne pasta with chicken and oven-toasted rotisserie beef dip sandwiches. Entrees range from $6–$9. Boston Market is<br />
owned by McDonald’s Corp. Five additional branches will open by year’s end. (NDNF 5/6/03)<br />
McDonald’s Corp. is “making headway” with operational changes, reorganized marketing efforts and “more wholesome<br />
choices” on the menu, chairman and chief executive Jim Cantalupo told shareholders at its May 22 annual meeting in Oak<br />
Brook, IL. He told shareholders that their “faith and patience” would be rewarded, although it could take up to 18 months. He<br />
acknowledged that the chain still has “a long way to go,” despite its domestic same-store sales’ positive turn in April following<br />
its debut of a new premium salad line. In related news, the company may eliminate more jobs after cutting 1,450 in the last two<br />
years. It told analysts that it is examining staffing levels in an effort to weed out duplication and waste. Special attention is<br />
being paid to headquarters staff, their role in the company and whether or not they are duplicating tasks that are being handled<br />
in the field. In other news, McDonald’s was ordered by a Los Angeles County Superior Court jury to pay $16.5 million to former<br />
four-unit Southern California franchisee Sandra Darling, who charged that the company had conspired to defraud her, wrongly<br />
force her from the system and pushed her into bankruptcy. The jury, which heard charges that McDonald’s was interested in a<br />
$3.5 million-a-year branch she ran and would not subordinate a loan she needed to make required improvements, awarded<br />
Darling $6.5 million in compensatory damages and $10 million in punitive damages. McDonald’s said it is confident the<br />
decision will be overturned. And finally, Cantalupo acknowledged that McDonald’s is conducting a strategic review of its<br />
nonburger chains—including Boston Market, Chipotle and Donatos—with Morgan Stanley. (NRN 5/12/03 p4 & 6/2/03 p4; RB<br />
5/15/03 p12; NDNF 5/27/03)<br />
McDonald’s Corp. recently made a number of personnel changes. Promoted was Claire Barbrowski to chief restaurant<br />
operations officer. Previously, she was president of the chain’s Asia Pacific, Middle East and Africa division. Marvin Whaley,<br />
president of the chain’s North Asia division, will replace Barbrowski. Vice chairman Jim Skinner assumed additional<br />
responsibilities, including overseeing McDonald’s Holding Co. (Japan) Ltd. Richard Floersch was named worldwide human<br />
resources director. Previously, Floersch was senior vice president of human resources at Kraft Foods International. Business<br />
development president Mats Lederhausen assumed more managerial duties and will focus exclusively on the chain’s partner<br />
brands, which include Chipotle, Boston Market and Donatos Pizza. In other news, the chain also approved a plan to offer<br />
franchisees payment for rebuilding costs. The company will pay $475,000 toward the estimated $1.7 million for rebuilding an<br />
older unit. Originally, McDonald’s expected the expense to be absorbed solely by franchisees. In exchange for the payment,<br />
owner-operators will increase their rent by 1%. (NDNF 11/5/03; CT 10/21/03 Sec. 3 p1)<br />
McDonald’s Corp. announced that it intends to end its joint venture with Fazoli’s and close its Pret a Manger stores in Japan.<br />
However, the company plans to keep its Chipotle and Boston Market concepts and retain its stake in the Pret concept.<br />
(Restaurant Business Daily News 12/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
73
<strong>RISE</strong> COMPANY PROFILE<br />
Boston Market signed a deal with supermarket chain Food Lion. Under the agreement, Food Lion would serve Boston<br />
Market’s core menu in a “take and go” format in at least 10 supermarkets over the next 18 months. (NRN Daily NewsFax<br />
12/22/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
74
Braum's Ice Cream & Dairy Stores<br />
Headquarters<br />
3000 N.E. 63rd St., Oklahoma City, Oklahoma 73121 USA<br />
Tel: (405) 478 1656 Fax: (405) 475 2460<br />
www.braums.com<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 275,000 270,000 277,200<br />
Company-owned ($000) 275,000 270,000 277,200<br />
Franchised ($000) - - -<br />
U.S. Number of Units 282 280 279<br />
Company-owned 282 280 279<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 960 960 993<br />
Concept Positioning |<br />
Braum's Ice Cream Stores are quick-service operations offering counter or takeout service from 6 a.m. through 11 p.m. daily.<br />
Stores include a dairy and bakery package area, fountain and sandwich service and drive-through service.<br />
A central bakery produces all of their baked goods including a line of variety breads and hamburger buns, ice cream cones,<br />
cookies, brownies, and pound and fudge cakes. Its dairy products are processed in the Braum’s Processing Plant and<br />
delivered exclusively to Braum’s stores every other day.<br />
Units vary in size, with smaller, older stores accommodating 20–30 patrons. Newer stores have a sleek, modern largely glasswalled<br />
look, drive-through service and seating for around 125 customers. An extensive remodeling program is underway to<br />
update older stores.<br />
Henry H. Braum began operations in 1933 with the purchase of a butter plant in Emporia, KS. Ice cream production was<br />
added in 1940, as well as the establishment of several ice cream stores. Bill Braum, son of Henry, joined his father in 1949.<br />
They sold the wholesale part of the business in 1952, maintaining only the store operations, then named Peter Pan Ice Cream<br />
Stores. Bill bought out his father in 1957 and added stores until 1967. The chain, then 61 stores, was sold to Steffens Foods,<br />
Wichita, KS, in September 1967. Braum’s is currently family-owned and operated and doesn’t franchise.<br />
Braum's has its own in-house advertising agency. It uses radio, television and newspaper to reach its customers.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
75
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: more than 100 flavors of ice cream, frozen yogurt and frozen custard; 100 flavors are sold in half-gallon<br />
containers and the various flavors that are offered in stores at one time are rotated every 4–6 weeks; 27 flavors are available<br />
at all times in stores by the scoop and are rotated as well. Formulations for Premium, Frozen Yogurt, Sherbet, Frozen Custard,<br />
Fat-free No Sugar Added Frozen Yogurt, Diet No Sugar Added Frozen Yogurt and Premium Light included. Entrees:<br />
hamburgers & cheeseburgers & steak & chicken sandwiches. Also fries & salads. Breakfast includes biscuit platters, cinnamon<br />
rolls, muffins & bagels.<br />
Personnel |<br />
Tony Bostwick, Chief Executive Officer<br />
Drew Braum, President<br />
Stacey Overton, Chief Financial Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
76
Brinker International<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
www.brinker.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Big Bowl<br />
Chili's Grill & Bar<br />
Corner Bakery<br />
Cozymel's<br />
Maggiano's<br />
On the Border<br />
Rockfish Seafood Grill<br />
Romano's Macaroni Grill<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 3,532,359 3,129,354 -<br />
Company-owned ($000) 3,150,734 2,669,489 -<br />
Franchised ($000) 381,625 459,865 -<br />
U.S. Number of Units 1,251 1,126 -<br />
Company-owned 1,099 981 -<br />
Franchised 152 145 -<br />
International Sales ($000) 174,776 156,283 -<br />
International Units 92 82 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
The parent company of Chili’s Romano’s Macaroni Grill, On The Border Mexican Grill & Cantina, Maggiano’s Little Italy, the<br />
Corner Bakery Café, Cozymel’s Coastal Grill, and Big Bowl continued its healthy growth in 2002.<br />
Brinker International is a multi-concept restaurant company that focuses its operations in the upscale, casual dining segment.<br />
To facilitate growth, Brinker maintains an active, on-going new concept development program. In September 1995, the<br />
company expanded these capabilities by developing an alliance with Rich Melman and his team at Lettuce Entertain You<br />
Enterprises—this following the acquisition of LEYE's Maggiano's Little Italy and Corner Bakery concepts. Between 85% and<br />
90% of Brinker’s restaurants remain company-owned and operated directly by itself.<br />
Brinker International was founded in Dallas in 1975 by brothers Larry and Jack Lavine. In January 1984, the company went<br />
public. In 1988, it acquired 6-unit Grady's Goodtimes, Knoxville, TN, and changed the name in early 1990 to Regas Grill and<br />
then later to Grady's American Grill. In November 1989, Romano's Macaroni Grill, San Antonio, TX, was acquired from its<br />
founder, Phil Romano. In May 1991, the corporation name changed from Chili's Inc. to Brinker International to better reflect the<br />
changing scope of its diverse foodservice operations as well as international expansion.<br />
Announced early 1994, by mid-year Brinker had completed its acquisition of On The Border Cafes. In mid-1995, it acquired<br />
Maggiano's Little Italy and the Corner Bakery concepts from Lettuce Entertain You Enterprises in a stock deal, followed in<br />
October with the announcement of the sale of its Grady's American Grill and Spageddie's concepts to Quality Dining, Inc., one<br />
of its Chili's franchisees. In early 1996, it opened Eatzi’s, a home meal replacement concept, in Dallas, but it was sold in 2002<br />
to Eatzi’s chief executive officer Phil Romano along with a group of investors. In 2000, the company bought LEYE’s 50% stake<br />
in Big Bowl and sold its stake in Wildfire. Both concepts were joint ventures of the two companies. In mid-2001, the company<br />
added another chain brand to its portfolio: Rockfish Seafood Grill, a casual-dining seafood chain operated by Dallas-based<br />
See-Worthy Restaurants Inc. As of January 2003, there were nearly 20 Rockfish locations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
77
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Big Bowl offers Asian cuisine; Chili’s Bar & Grill has a varied menu that includes hamburgers and French fries; Corner Bakery<br />
offers upscale sandwiches and freshly baked breads as well as salads, soups and coffees; Cozymel’s and On The Border<br />
have Mexican fare; and Maggiano’s Little Italy and Romano’s Macaroni Grill both menu Italian food.<br />
Expansion Plans |<br />
Rockfish Seafood Grill was to be expanded by Brinker International with six to eight joint-venture franchised outlets by the<br />
close of fiscal 2003 at the end of June. Its unit-count is at 20. Brinker made a minority investment of some 40% in the brand in<br />
July 2001 and has indicated that it may increase its equity investment depending on the concept’s performance. (Nation’s<br />
Restaurant News)<br />
Personnel |<br />
Norman Brinker, Chairman<br />
Douglas Brooks, Chief Executive Officer<br />
Charles Sonsteby, Chief Financial Officer<br />
James Buettgen, Vice President of Marketing<br />
Theodore Leovich, Vice President of Operations<br />
Lisa Dickson, Director of Purchasing<br />
Rebeca Johnson, Senior Vice President of Marketing<br />
Brinker International appointed Doug Brooks chief executive officer. Previously, Brooks held the post of chief operating officer.<br />
(Nation’s Restaurant News 6/16/03 p86)<br />
News & Other |<br />
Several large restaurant companies have been sued by California’s attorney general for failing to warn patrons about mercurylaced<br />
seafood’s potential harm. Brinker International, Darden Restaurants, Landry’s Restaurants and 13 other major chain<br />
operators are the target of lawsuits that claim they violated the state’s Proposition 65 law by failing to warn patrons about<br />
carcinogenic mercury, methyl mercury and related compounds in shark, swordfish and tuna. The lawsuits seek unspecified<br />
civil penalties, court costs and injunctions that bar sales of such fish unless Prop. 65 notification requirements are met. Such<br />
warnings have begun appearing in California grocery stores, which were the target of similar lawsuits earlier this year. A group<br />
of the restaurant chains had requested that the attorney general file suit, deeming it preferable to litigation threatened by two<br />
private groups. Landry’s general counsel predicted that the issue would be resolved within 60 days. (NRN 4/28/03 p1; RB<br />
5/1/03 p12)<br />
Chili’s began recruiting managers from other industries last year to help satisfy its need for unit managers as it expands. About<br />
20% of the Brinker International-owned chain’s unit managers are promoted from within its hourly ranks and the rest had been<br />
recruited from other casual-dining operations. The chain hopes to now recruit up to 20% of its new managers from other<br />
industries with this broader approach. Since late 2001, Chili’s has hired more than 150 unit managers from industries such as<br />
airlines, home-improvement retail, meat processing, supermarkets and mass merchants. (CL 5/03 p118)<br />
Brinker International announced that Doug Brooks will assume the post of chief operating officer January 1 following Ron<br />
McDougall’s retirement. McDougall will continue as chairman. Brooks currently serves as Brinker’s chief operating officer, a<br />
post that will be filled by Todd Diener, current president of Chili’s Grill & Bar. Wilson Craft, current president of Big Bowl Asian<br />
Kitchen, will become president of Chili’s and J.J. Buettgen, who recently joined the company as senior vice president of<br />
marketing and brand development, will take over as president of Big Bowl. (NRN 7/7/03 p3)<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
78
<strong>RISE</strong> COMPANY PROFILE<br />
Brinker International reported a 3% increase in same-store sales for the four weeks ended August 27. The rise includes<br />
increases of 3.5% at Chili's Bar & Grill, 2.9% at Romano's Macaroni Grill, 2.7% at On the Border Mexican Grill & Cantina and<br />
0.8% at Maggiano's Little Italy. (NRN Daily NewsFax 9/5/03)<br />
Brinker International Inc. reported same-store sales increased 3% for the four weeks ended August 27. (Nation’s Restaurant<br />
News 9/15/03 p11)<br />
Brinker International Inc. for the first quarter ended September 24, reported same-store sales increased 1.9%. Revenues<br />
increased 12.5% to $870.9 million, and net income decreased 5% to $42.8 million. (NRN Daily NewsFax 10/22/03)<br />
Brinker International announced a 2% price increased will be implemented throughout its system. Details for Brinker concepts<br />
were not disclosed. (RestaurantBiz.com 10/22/03)<br />
Brinker International Inc. for the five weeks ended October 29, reported same-store sales decreased 0.8%. (NRN Daily<br />
NewsFax 11/7/03)<br />
Brinker International Inc. for the 13-week first quarter ended September 24, reported revenues increased 12.5% to $870.9<br />
million. (Nation’s Restaurant News 11/3/03 p12)<br />
Brinker continues to tweak the Corner Bakery concept, slowing expansion for the bakery/café chain. With Jean Birch named<br />
president in August, unit growth has stalled as Brinker looks to develop Corner Bakery into a more consumer-friendly concept.<br />
Some changes include a store redesign and a new ordering system. (MBN 10/7/03 p1 & 10)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
Brinker International for the four weeks ended November 26, reported that same-store sales rose 1.6%. (NRN Daily NewsFax<br />
12/5/03)<br />
Brinker International recently hired a firm to develop a defined music style for each of its chains. The audio/visual systems<br />
company considered each chain’s distinct demographics, ambience and pace of dining when developing the customized<br />
music menus. Maggiano’s Little Italy, Chili’s Grill & Bar and On the Border Mexican Grill & Cantina each have music menus<br />
that include hundreds of singers and musical groups. Each unit downloads preset music through Brinker’s intranet on a regular<br />
basis and there is no need to change CDs. Separately, the Internal Revenue Service alleges that Brinker’s tip-reporting<br />
procedures don’t meet the requirements of a 1996 agreement, according to an SEC filing. The 1,400-unit company’s<br />
agreement with the IRS included requirements that it implement tip-reporting educational programs for its hourly restaurant<br />
employees and establish tip-reporting procedures. Brinker said it believes that it has complied with the agreement and notes<br />
that it is in discussions with the IRS but said it could not estimate if the resolution of the dispute would have any financial<br />
impact. (R&I 11/15/03 p19; NRN 11/24/03 p80)<br />
Chili’s Grill & Bar parent Brinker International signed a development deal for 25 new units in the Cleveland and Youngstown,<br />
OH, areas and in parts of central Ohio and northeastern Pennsylvania. Opening the units will be David Strang, a member of<br />
the Midwest’s Strang restaurant family. The deal also includes Strang’s acquisition of four Chili’s in the Cleveland and<br />
Youngstown markets. Strang Corp. noted that the company is not part of this transaction. (NRN 11/24/03 p80; FIR 12/1/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
79
Bruegger's Bagel Bakery<br />
Headquarters<br />
159 Bank St. P.O. Box 374, Burlington, Vermont 05401 USA<br />
Tel: (802) 660 4020 Fax: (802) 660 4034<br />
www.brueggers.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 155,167 164,716 179,275<br />
Company-owned ($000) 167 1,941 2,670<br />
Franchised ($000) 155,000 162,775 176,605<br />
U.S. Number of Units 250 258 282<br />
Company-owned 3 3 4<br />
Franchised 247 255 278<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 620 625 667<br />
Concept Positioning |<br />
Bruegger's Bagel Bakery is one of the largest chains of quick service specialty bakeries. Stores average 1,600–2,400 sq.ft.<br />
with 45–60 seats and are located in strip centers, downtowns or malls; anywhere with high-density early-morning foot traffic as<br />
70% of sales take place before 2 p.m. Takeout accounts for 40% of unit sales volume.<br />
Stores bake New York-style bagels throughout the day to ensure at least three varieties are hot at all times. Inherent to the<br />
concept is the use of two certified "bake masters" to oversee bagel production. Twenty regional commissaries make the dough<br />
from scratch that units use for proofing, boiling and baking. In addition, the company also produces its own proprietary cream<br />
cheese spreads in both low-fat and regular versions.<br />
Bruegger's was founded in 1983 by Nordahl Brue and Mike Dressell, both of whom are still active in senior management. In<br />
mid-1996, Quality Dining, one of its major franchisees, announced its acquisition of the company for some $133 million in a<br />
stock swap and its move into Quality's headquarters. In 1997, Quality Dining sold Bruegger’s back to founders Nordahl Brue<br />
and Mike Dressell for cash and stock.<br />
David Austin is president and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Over 17 bagel varieties and 13-specialty cream cheese spreads. Also menus 25 distinct sandwiches including<br />
Leonardo da Veggie, Santa Fe Turkey, Atlantic Smoked Salmon and Chicken Fajita, soup offerings that differ each day and an<br />
assortment of bakery items such as Blondie, Cappuccino and lemon bars, brownies and Oatmeal Cranberry Mountains<br />
Breakfast line includes bagel and egg sandwiches until 11:00 a.m. Beverages include house brand Javahh! coffee, iced<br />
coffee, hot/iced tea, bottled juices, sodas, orange juice, hot mulled cider, milk and hot chocolate. Check Averages: $3.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
80
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bruegger’s Bagels introduced several new breakfast sandwiches as part of an effort to broaden its menu. Its Jalapeño<br />
Western Egg Sandwich ($2.99) features eggs mixed with red peppers and onions, then topped with jalapeño-and-Cheddar<br />
cheese. It is served on a bagel. (Nation’s Restaurant News 12/8/03 p42)<br />
Bruegger’s Bagels introduced several entrée salads in an effort to boost lunch business. Priced from $5–$7, offerings include<br />
an Orient Express Asian Chicken Salad, a Caesar Salad and a Tangy Tango Salad that combines dried cranberries, blue<br />
cheese crumbles and Mandarin orange segments. Each is served with bread made from the chain’s Asiago bagel dough.<br />
(Nation’s Restaurant News 12/8/03 p42)<br />
Bruegger’s Bagels bolstered its collection of made-to-order sandwiches with several new options. They include Radishy Roast<br />
Beef, Asiago Roast Beef and Cuban Chicken. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 12/3/03)<br />
Personnel |<br />
Scott L. Hughes, Vice President of Marketing<br />
James J. Greco, Chief Executive Officer<br />
Scott D. Berkman, Vice President of Marketing<br />
David T. Austin, President<br />
Robert D. Parette, Vice President of Finance<br />
Donald Ritacca, Vice President of Operations<br />
Scott Hughs, Vice President of Marketing<br />
Bruegger’s Enterprises Inc. named James J. Greco chief executive. Previously, Greco was chief executive of Fieldbrook<br />
Farms Inc. (NRN Daily NewsFax 10/21/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
81
Bubba Gump Shrimp<br />
Headquarters<br />
940 Calle Negocio Suite 250, San Clemente, California 92673 USA<br />
Tel: (949) 366 6260 Fax: (949) 366 6261<br />
www.bubbagump.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 79,000 70,000 60,000<br />
Company-owned ($000) 78,000 70,000 60,000<br />
Franchised ($000) 1,000 - -<br />
U.S. Number of Units 15 12 12<br />
Company-owned 14 12 12<br />
Franchised 1 - -<br />
International Sales ($000) 6,000 6,000 -<br />
International Units 1 1 -<br />
Average Sales/Unit ($000) 5,900 5,800 4,999<br />
Concept Positioning |<br />
Inspired by Paramount's blockbuster movie "Forrest Gump," Bubba Gump Shrimp Co. Restaurant & Market features décor<br />
and ambiance stemming from the motion picture. Each unit takes on the look of a "southern shrimp shack" with a "downhome"<br />
décor infused with backdrops, scripts and other artifacts that are designed to evoke memories of scenes from the<br />
movie, including a mock-up "the Jenny" shrimp boat and "Mama Gump's House." Tables are furnished with two license plates<br />
on chains to be used by customers during their visit. A green license plate reading "Run, Forrest, Run" should be left in place if<br />
guests have all that they need. However, if help is needed, guests may use a red license plate that reads, "Stop, Forrest, Stop"<br />
in order to signal help from an employee. To add to its allure, the concept features a retail store which reportedly accounts for<br />
20–30% of its sales. Retail items range from Bubba's shrimp cookbook and the infamous "box of chocolates" to Gump-inspired<br />
T-shirts and hats. Units average around 10,000 sq.ft. and seat approximately 200 people.<br />
The first Bubba Gump Shrimp Co. Restaurant & Market opened in March 1996, on Monterey's Cannery Row, as a joint<br />
venture between Rusty Pelican Restaurants, Inc. and Paramount Pictures. The concept was inspired by Paramount's 1994<br />
feature film, "Forrest Gump." Key personnel includes Scott Barnett, president; Tim Busald, vice president of<br />
operations/purchasing; and Gail Cederoth, vice president of operations/new store design. Average unit volumes are<br />
approximately $6 million.<br />
<strong>Menu</strong> Positioning |<br />
Draws on its shrimp theme by offering some 15 shrimp specialties including fried shrimp, steamed shrimp, popcorn shrimp,<br />
shrimp po' boy, shrimp new orleans, drunken shrimp and coconut shrimp. The biggest seller is a combination of fried shrimp,<br />
mahi mahi and lobster called "Bucket of Boat Trash." A variety of "non-shrimp" entrees are featured on the menu as well.<br />
Check averages are about $12 at lunch and $20 at dinner.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
82
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bubba Gump Shrimp Co. expects to open its first New York location in December. The location is a 12,000–square-foot site in<br />
Times Square. (NRN Daily NewsFax 9/30/03)<br />
Bubba Gump Shrimp Co., operator of 14 full-service restaurants, expects to open the fast-casual Capi's Italian Kitchen at<br />
Chicago's Navy Pier. At 4,200 sq.ft., the concept would seat 100 inside and 150 on the patio and is slated to open by March<br />
2004. The menu, designed by Dave Lucarelli, chef at the Maui, HI, Bubba Gump branch, will feature panini, pastas, salads<br />
and pizzas. It is expected to generate checks of $7–$9. (Nation's Restaurant News 10/27/03 p92)<br />
<strong>Menu</strong> Development |<br />
Dessert ingredients are being used to add unexpected twists to entrees. While savory versions of classic desserts have been<br />
trendy over the last year or so, with chefs utilizing elements such as pepper, chili and beer in desserts, the latest innovation at<br />
several New York restaurants appears to be dessert-inspired flavors being applied in unexpected ways. At Jefferson, fish is<br />
served with chocolate-balsamic syrup, while Bull Run serves Vanilla Scented Lobster Bisque blended with Tahitian vanilla<br />
beans and extract. The soup is served with a lobster cake coated in coconut. Another example is the Wood Grilled Steak with<br />
Bitter Chocolate and Syrah Sauce at Bradley Ogden. (Wall Street Journal)<br />
Dessert beverages based on popular sweets are being used to add a unique alternative for after-dinner options. While limitedservice<br />
chains have long offered dessert-oriented beverages such as Starbucks toffee nut crème and caramel apple cider, fullservice<br />
concepts are now exploring these drinks. Dylan Prime in New York serves a series of alcoholic beverages called “pietinis”<br />
that are based on popular desserts such as apple pie a la mode, peach cobbler and Key lime pie. The peach cobbler pietini<br />
is a blend of peach schnapps, fresh peach puree and simple syrup. It is poured in a martini glass rimmed with cinnamon<br />
sugar and layered with vanilla liquor and heavy cream. T.G.I. Friday’s offers a similar collection with drinks inspired by<br />
strawberry shortcake, banana splits and ice cream sandwiches. Its banana split blends three liqueurs with bananas,<br />
strawberry and vanilla ice cream. For nonalcoholic options, Bubba Gump Shrimp Co. serves an assortment of dessert<br />
smoothies in flavors such as Oreo Cookie and an Alabama Sweet offering that blends peanut butter, chocolate and nonfat<br />
vanilla frozen yogurt. (Nation’s Restaurant News)<br />
Personnel |<br />
Scott Barnett, Chief Executive Officer<br />
Gail Taggart, Vice President of Operations<br />
Dan Bylund, Chief Financial Officer<br />
James Kaa, Vice President of Finance<br />
Kathy Peterson, Director of Marketing<br />
News & Other |<br />
Bubba Gump Shrimp Co. announced it would open the fast-casual Capi’s Italian Kitchen at Navy Pier in Chicago. Occupying<br />
4,200 sq.ft. and seating 100 inside and 150 on a patio, Capi’s is expected to open by March and will feature a menu with<br />
panini, pastas, salads and pizzas. (NDNF 10/20/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
83
Buca di Beppo<br />
Headquarters<br />
1300 Nichollet Mall, Minneapolis, Minnesota 55403 USA<br />
Tel: (612) 288 2382 Fax: (612) 827 6446<br />
www.bucadibeppo.com<br />
Ownership: Public<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Vinny T's of Boston<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 210,900 175,635 129,790<br />
Company-owned ($000) 210,900 175,635 129,790<br />
Franchised ($000) - - -<br />
U.S. Number of Units 82 68 51<br />
Company-owned 82 68 51<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,714 2,812 2,544<br />
Concept Positioning |<br />
Buca di Beppo translates most literally as Joe’s Basement. Buca di Beppo features Southern Italian-style food served on oversized<br />
platters in large portions meant for sharing. The recipes were developed by Executive Chef Vittorio Renda, a native of<br />
Calabria, Italy.<br />
The concept's menu offers Italian food derived from family recipes that originated in the tiny Southern villages of Italy. At Buca<br />
di Beppo, guests dine on red sauce specialties like Chicken Cacciatore and a signature version of Spaghetti and Meatballs,<br />
with three half-pound meatballs over two pounds of pasta. Buca di Beppo also offers “peasant fare” such as Rigatoni Positano,<br />
and seasonal specialties such as Lemon Profiteroles. The concept’s menu also features Per Due, which are menu items that<br />
pair smaller portions of Baked Specialties with lighter portions of several of its most popular entrée items to suit small parties.<br />
Contributing to its old Italian decor are neon signs, bathroom kitsch and hundreds of photos of famous and near-famous<br />
Italian-Americans on the walls. In the restaurant guests are surrounded by vintage family photos hanging alongside photos of<br />
Italian-American icons such as Sophia Loren and Joe DiMaggio. Red-and white-checkered tablecloths and music of Dean<br />
Martin and Frank Sinatra complete the decor. Key features include The Pope's Table, a table which seats 14 to18 adults with a<br />
throne-like oversized chair at its head, and an in-the-kitchen table. The menu is printed on the walls and framed menu stands.<br />
Open for dinner-only during the week and at noon on weekends, units average about 7,500 square feet with seating for 230–<br />
300 guests. Many locations will open early for private parties. Buca di Beppo selects downtown sites, urban districts and<br />
suburban locations for its restaurants. Facilities include locations with complete building renovations, partial remodels and new<br />
construction.<br />
In 1993, two Minneapolis restaurateurs, Philip Roberts and Peter Mihajlov, founded Buca Ventures, Inc. as a spin-off of their<br />
company, Parasole Restaurants, Inc. The two men financed Buca Ventures through an $8.5 million private offering. In 1999,<br />
Buca completed an initial public offering; a secondary stock offering in 2000 raised $33 million in capital.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
84
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: Family-style portions of Southern Italian-style dishes. Most popular entrees include Chicken Cacciatore over<br />
garlic mashed potatoes, spaghetti with half–pound meatballs, Eggplant Parmigiana, Veal Marsala and Ravioli di Pomodoro.<br />
There are also two to three daily specials offered from a list of 70, which accounts for approximately 16% of sales. The menu<br />
also features a collection of “baked” pasta specialties and smaller meals designed for parties of two. The menu also features:<br />
Neapolitan pizzas, that are some 12" x 24"in size, appetizers, such as fried calamari and mussels marinara, salads and sides<br />
including meatballs, green beans with olive oil and lemon, garlic mashed potatoes as well as traditional Italian desserts like<br />
spumoni and tiramisu. <strong>Menu</strong> Prices: $9.95–$22.95. Check Averages: approximately $20.<br />
<strong>Menu</strong> Development |<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Vinny T’s introduced several new entrees with its latest menu. The Buca-owned chain is supporting the launch with advertising<br />
and $5 and $10 discount deals. Offerings include: ■ Linguini Frutti di Mare—shrimp, mussels, calamari and clams in a light<br />
garlic-and-tomato sauce with fresh basil and served over linguine ($18.95) ■ Penne Fiorentina—sauteed chicken, baby leaf<br />
spinach, roasted red peppers and Romano cheese tossed with penne pasta and a cream sauce flavored with crushed red<br />
pepper ($12.95 for one; $19.95 for two) ■ Shrimp Parmigiana—shrimp in marinara and béchamel sauces, topped with<br />
shredded mozzarella and seasoned bread crumbs, then lightly toasted and served over spaghetti ($17.95) ■ Lobster Fra<br />
Diavolo—whole main lobster (1.25 pounds) baked with crab meat stuffing and served with linguine pasta tossed with spicy<br />
diavolo tomato sauce ($26.95). (Nation’s Restaurant News 9/29/03 p14, Company Web Site 10/7/03)<br />
Buca was expected to begin testing a menu with smaller portions at three units in November. The entrees are designed for two<br />
people and range in price from $8.95–$13.95. They are designed to attract smaller parties. (NRN Daily NewsFax 10/17/03)<br />
Technology |<br />
Fishbowl, an e-mail marketing services firm, assists its clients in sending more than 2 million e-mail messages a month on<br />
behalf of about 60 restaurant chains, including Buca di Beppo, Johnny Carino’s Country Italian, Maggiano’s Little Italy and<br />
Texas Roadhouse. The company also specializes in database management; creation of e-mail content; survey planning<br />
strategies; and updates of e-mail materials to support quarterly marketing goals. Fishbowl clients pay a $7,500 set-up fee and<br />
from $100–$300 per restaurant per month, depending on the database size. Fishbowl client Red Robin Gourmet Burgers is<br />
rolling out a marketing program using e-mail to build brand awareness and guest loyalty. The 198-unit chain decided on this<br />
strategy after successfully testing a guest loyalty program created by Fishbowl. In the eight-restaurant pilot, the company said<br />
it received measurable results that e-mail marketing works. (NRN 5/19/03 p174)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
85
Personnel |<br />
Stephen Hickey, Chief Marketing Officer<br />
Joseph Micatrotto, Chairman<br />
Greg Gadel, Chief Financial Officer<br />
Joseph Kohaut, Senior Vice President of Operations<br />
Jim Cowler, Senior Vice President of Operations<br />
Anthony Penn, Senior Vice President of Operations<br />
Joseph Talarico, Vice President of Operations<br />
Randy Lopez, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Buca di Beppo may add lunch service at up to 15% of its restaurants, breaking from its dinner-only tradition. Four more outlets<br />
will be added to the one unit currently offering lunch and service could later be extended to seven more. (RB 2/15/03 p19)<br />
Buca Inc. purchased a farmhouse near Tuscany, Italy, that it will use as a training facility for chefs and store managers.<br />
Located in the town of Cermenino, it is near the La Tancia winery, which produces wines for Buca’s restaurants. The house is<br />
being remodeled and is expected to be ready by 2005. Buca, operator of more than 90 Buca di Beppo and Vinny T’s<br />
restaurants, already sends managers and chefs on trips to Italy three times a year. The farmhouse will be part of those cultural<br />
and culinary trips and will be used as a location for wine tastings. (NRN 3/17/03 p18)<br />
Buca di Beppo for the third quarter ended September 28, reported same-store sales decreased 9%. (NRN Daily NewsFax<br />
10/24/03)<br />
Buca Inc. for the third quarter ended September 28, reported restaurant sales increased 4.4% to $62.1 million. Same-store<br />
sales decreased 9%. (Nation’s Restaurant News 11/3/03 p20)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
86
Buffalo Wild Wings Grill & Bar<br />
Headquarters<br />
1600 Utica South Suite 700, Minneapolis, Minnesota 55416 USA<br />
Tel: (952) 593 9943 Fax: (952) 593 9787<br />
www.buffalowildwings.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 282,200 220,000 173,000<br />
Company-owned ($000) 85,500 66,000 46,000<br />
Franchised ($000) 196,700 154,000 127,000<br />
U.S. Number of Units 199 158 137<br />
Company-owned 70 53 42<br />
Franchised 129 105 95<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,577 1,526 1,095<br />
Concept Positioning |<br />
Buffalo Wild Wings, which began as a chain of college hangouts specializing in authentic Buffalo wings, has evolved into fullservice,<br />
sports-themed casual dining restaurants open for lunch and dinner.<br />
Units average 5,000–7,000 sq.ft. with seating for 180–250 people. Each is furnished with large screen TV’s with satellite dish<br />
access for sports and interactive games. Its current decor has a blue and gold color scheme with hanging lamps, neon signs<br />
and wood floors in the bar area.<br />
Founded by Jim Disbrow and Scott Lowery, the first unit opened at Ohio State University in 1982. Current management<br />
includes Sally J. Smith, president and chief executive officer; Bob McGurck, senior vice president of operations; and Mary<br />
Twinem, chief financial officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Buffalo Wings served in one of 12 signature sauces including hot, wild, sweet barbecue and teriyaki and<br />
Buffalitos—a flour tortilla stuffed with chicken or chili, veggies and a signature sauce. Also menus salads, sandwiches, burgers<br />
and Thai and Caribbean specialties as well as an extensive line of finger foods like mozzarella sticks, mini corn dogs and<br />
chicken tenders. Full liquor service. Check Averages: $8–$12.50.<br />
Expansion Plans |<br />
Buffalo Wild Wings plans to open 60 locations in 2004, including an Atlanta debut. The chain is already on track open 40<br />
stores in 2003. (Nation’s Restaurant News 9/22/03 p72)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
87
Promotion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Buffalo Wild Wings Grill & Bar introduced new bags and cups to launch their “Get it to Go” campaign promoting the chain’s<br />
entire menu as takeout. TV spots are airing in more than 46 markets and radio ads are running in the remaining markets.<br />
(NRN Daily NewsFax 10/16/03)<br />
<strong>Menu</strong> Development |<br />
Buffalo Wild Wings introduced boneless wings. They are all-white-meat chicken breast meat that is breaded and fried. The<br />
wings are served with any of the chain’s 12 sauces, which include Hot BBQ, Caribbean and Thai flavors. (NRN Daily<br />
NewsFax, 8/27/03)<br />
Buffalo Wild Wings expanded its menu offerings to include 12 proprietary sauces, ranging from mild teriyaki to Caribbean jerk.<br />
In addition, an array of burgers, sandwiches, salads and boneless wings are featured. (Nation’s Restaurant News 9/22/03 p72)<br />
Personnel |<br />
Sally Smith, Chief Executive Officer<br />
Mary Twinem, Chief Financial Officer<br />
Mark Lutz, Vice President of Purchasing<br />
Kathy Alberga, Vice President of Marketing<br />
News & Other |<br />
Buffalo Wild Wings Inc. reported for the six months ending June 29, net income was flat at $1.4 million on a 27% revenue<br />
increase to $58.7 million. The chain also reported same-store sales rose 1% at franchised units and 0.6% at companyoperated<br />
restaurants. (NRN Daily NewsFax 9/15/03)<br />
Buffalo Wild Wings Inc. registered for an initial public stock offering expected to raise $46 million. For the year, this was the<br />
restaurant industry’s first registration. No IPO date has been set. (NRN Daily NewsFax 9/15/03)<br />
Buffalo Wild Wings registered for an IPO. The company said it expects to raise $46 million in the IPO, according to its SEC<br />
filing. An anticipated date for the offering has not yet been set by the company, which intends to use the funds to pay off $12<br />
million in lease obligations and bank debt and for expansion. The chain currently has 77 company-owned and 140 franchised<br />
units. (NDNF 9/15/03)<br />
Buffalo Wild Wings Grill & Bar launched “boneless wings,” its first new menu item in more than a year. The wings are made<br />
from chicken breast meat that is lightly breaded. Orders come in eight- or 12-piece sizes and are available with any of BWW’s<br />
12 sauces. (NRN 11/10/03 p42)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
88
Bugaboo Creek Steak House<br />
Headquarters<br />
8215 Roswell Rd., Atlanta, Georgia 30350 USA<br />
Tel: (770) 399 9595 Fax: (770) 399 7796<br />
Ownership: Public<br />
Segment: Full Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 71,200 66,100 62,964<br />
Company-owned ($000) 71,200 66,100 62,964<br />
Franchised ($000) - - -<br />
U.S. Number of Units 22 19 19<br />
Company-owned 22 19 19<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,567 3,480 3,313<br />
Concept Positioning |<br />
Bugaboo Creek is a casual dining concept that has created its unique positioning within the steak sector through the use of<br />
electronically animated wildlife characters that unexpectedly come to life and tell tales of Bugaboo Creek. The characters are<br />
trademarked and include Moxie the Moose, Bill the Buffalo and Timber the Tree.<br />
All units are freestanding and are large, ranging in size from 8,500-11,000 sq. ft. with seating for 270–325 persons. Designed<br />
to resemble a Canadian Rocky Mountain lodge, decor includes wildlife photos, hunting trophies, fly fishing and other sports<br />
equipment, skis, snow shoes, etc. The company developed its current prototype in 1997.<br />
Bugaboo Creek began operations in 1990. It made its initial public offering in 1994. In mid-1996, the company was acquired by<br />
Rare Hospitality International, Inc.<br />
<strong>Menu</strong> Positioning |<br />
Variety of seasoned steaks, classic prime rib, spit roasted chicken, barbecue ribs, grilled salmon and trout, fresh fish, beermarinated<br />
hamburgers, variety of pastas, salads and sandwiches. Full liquor service available. <strong>Menu</strong> Prices: $4.50–<br />
$17.95Check Averages: $16<br />
Personnel |<br />
Dennis Pedra, President<br />
Steven Micheletti, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
89
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bugaboo Creek Steak House for the third quarter ended September 28, reported same-store sales increased 2.7%. (NRN<br />
Daily NewsFax 10/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
90
Burger King<br />
Headquarters<br />
5505 Blue Lagoon Drive, Miami, Florida 33126 USA<br />
Tel: (305) 378 3000 Fax: (305) 378 7262<br />
www.burgerking.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 8,300,452 8,595,685 8,542,972<br />
Company-owned ($000) 652,946 598,281 537,982<br />
Franchised ($000) 7,647,506 7,997,404 8,004,990<br />
U.S. Number of Units 8,029 8,248 8,326<br />
Company-owned 607 574 502<br />
Franchised 7,422 7,674 7,824<br />
International Sales ($000) 2,871,562 2,684,483 2,718,448<br />
International Units 3,372 3,189 3,019<br />
Average Sales/Unit ($000) 1,024 1,045 1,071<br />
Concept Positioning |<br />
Burger King Corporation is the world's second largest hamburger chain. Its Burger King restaurants serve breakfast, lunch,<br />
dinner, and snacks. Many also offer drive-through service in addition to their sit down and carry out trade (carry-out accounts<br />
for 22% of sales volume); drive-through windows represent 53% of volume and some have extended their hours of business to<br />
as late as 4:00 a.m., serving a sandwich-only menu. There are more than 11,000 worldwide locations in 58 countries. Its<br />
signature meal, The Whopper, has been around since 1958.<br />
There are a wide variety of restaurant designs currently in use. Burger King's kitchen, drive-through window, and seating are<br />
standardized throughout the system, but operators may choose from approximately 35 interior packages, or create a unique<br />
look with company approval. A number of units have added playgrounds. Many are freestanding, but the system also includes<br />
a variety of nontraditional locations including colleges, military bases, malls, bus terminals, gas stations and turnpike/toll road<br />
rest areas.<br />
Burger King was sold in August for $2.26 billion by Diageo PLC to three U.S. investment houses, including Texas Pacific<br />
Group, Boston-based Bain Capital and Goldman Sachs Capital Partners. The sale puts Burger King on its own for the first<br />
time since 1964 when it was purchased by Pillsbury, and gave investors some hope that the financial and foodservice<br />
expertise possessed by the new investors would help ignite Burger King’s potential.<br />
James McLamore and David Edgerton opened the first "Home of the Whopper" in Miami in 1954. Pillsbury acquired the chain<br />
in 1967 and when it was acquired in 1988 by Grand Metropolitan PLC, a world leader in the food, drinks and retailing<br />
industries, it became part of their retailing group. In late 1997, Grand Metropolitan merged with Guinness PLC, and began<br />
operating under the name Diageo PLC. In 2002, Diageo PLC sold the company to an investor group led by Texas Pacific<br />
Group due to declining market share. The parent company is now the Burger King Corporation.<br />
Brad Blum is chief executive officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
91
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: flame-broiled hamburgers and cheeseburgers including the WHOPPER. Also chicken including BK Broiler<br />
and fish sandwiches, salads, fries, shakes and Coca-Cola products. Breakfast signature item: CROISSAN’WICH —croissant<br />
filled with egg, cheese and customer's choice of bacon, sausage, or ham and new biscuit sandwiches. Check Averages: $2–<br />
$3.50<br />
<strong>Menu</strong> Development |<br />
Burger King has brought back its Sourdough Bacon Cheeseburger through May 25. Priced at $3.25, the sandwich is topped<br />
with bacon and melted Swiss cheese and served on toasted sourdough bread. (NRN Daily NewsFax)<br />
Burger King developed a new homestyle premium burger for a late June launch. The Great American Burger will be promoted<br />
as the next best option to a hamburger grilled on the home barbecue, and a key feature will be liberal use of seasoned<br />
mustard, ketchup and mayonnaise, making the sandwich very juicy. Other more upscale elements include a bakery-style split<br />
bun and whole-leaf lettuce rather than the shredded variety that tops the chain’s other burgers. It will be prepared with the<br />
same beef patty used for the Whopper. With a suggested price of $2.89, it is at a slightly more premium price point than the<br />
Whopper. The Great American Burger will be offered through July 27 and may serve as a springboard for new products with<br />
the Great American name. The burger may be re-introduced each summer. (Restaurant Business Daily News, 6/19/03)<br />
Burger King introduced a Fire-Grilled Chicken Caesar Club. Promoted as a “salad in a sandwich,” it features romaine lettuce,<br />
Caesar dressing, Parmesan cheese, grilled chicken and bacon on toasted sourdough bread. It is priced at $3.49. (NRN Daily<br />
NewsFax, 7/31/03)<br />
Burger King is set to launch a line of chicken baguette sandwiches that will be promoted as healthy fare. The Fire-Grilled<br />
Chicken Baguettes each contain four grams of fat and feature the same filet that is being used for the Chicken Whopper Jr.<br />
(Restaurant Business Daily News, 8/26/03)<br />
Vegetarians can now enjoy a greater variety of options on fast-food menus as operators work to meet demand for healthier<br />
foods and appeal to consumers, especially women, who are likely to eat elsewhere to find healthy choices. Upgraded salads,<br />
soy burgers, veggie wraps and soups, and yogurt smoothies are increasingly common. Burger King now offers a Veggie<br />
Burger, which can be prepared on a separate grill from its meat options upon request. It also has several side salads. Chipotle<br />
positions itself as a fresher approach to Mexican and offers a variety of meatless options, including a vegetarian burrito that<br />
can be customized, a side of rice and beans, and guacamole. McDonald’s also has a McVeggie Burger and has supplemented<br />
its menu with a line of premium salads served with Newman’s Own dressings. Subway offers a Veggie Delite sandwich, and<br />
select stores offer Gardenburger products. Wendy’s now has a range of meatless options, including four Garden Sensations<br />
salads and baked potatoes with several meatless toppings. Panera also broadened its vegetarian options this year. While it<br />
previously only offered vegetarian salads and soups, it now serves a Garden Vegetable Sandwich on ciabatta bread.<br />
(Vegetarian Times, 9/03, p63)<br />
Burger King is reportedly developing a line of entrée salads as it works to expand its healthier offerings. (Reuters 9/18/03)<br />
Burger King is in the process of launching its Fire Grilled Baguette line. Chicago chef and restaurateur Rick Bayless is touting<br />
the products in promotions and it has been reported that both parties are open to the idea of Bayless taking an even more<br />
active role in the chain. Any such ventures would be related to Bayless’s credentials in Mexican cooking, according to a<br />
company spokesman. The three sandwiches each feature premium sauces, exotic spices and fresh-baked breads, and flavor<br />
is said to come from the fire-grilled vegetables versus fat. Single sandwiches have a suggested retail price of $2.89, and a Lite<br />
Combo Meal with a garden side salad and bottled water or traditional combo with medium fries and medium soda are priced at<br />
$4.59. Offerings include: ■ Santa Fe Chicken Baguette—topped with fire-roasted red and green peppers, onions and fireroasted<br />
Southwest sauce ■ Savory Mustard Chicken Baguette—with mustard sauce, lettuce and tomatoes ■ Smoky BBQ<br />
Chicken Baguette—with fire-grilled peppers and onions and a BBQ sauce featuring 12 different spices. (Company Release<br />
9/18/03, Nation’s Restaurant News 9/8/03 p97 & 9/29/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
92
<strong>RISE</strong> COMPANY PROFILE<br />
Southwestern flavors are featured in what some are calling Western or Cowboy Cuisine. This cooking style has been evident<br />
in restaurants for some 20 years, and really got its start in the 1980s when chefs such as Robert Del Grande, Mark Miller and<br />
Stephan Pyles began blending local ingredients, Tex-Mex and Mexican practices and European techniques. The result was<br />
boldly flavored rustic food. It has since gained exposure in several mainstream restaurants. Examples include a Cowboy<br />
Ribeye at Coyote Café, a Del Rio Salad at McDonald’s or the Santa Fe Chicken Baguette at Burger King. Southwestern has<br />
also become accepted as a fine-dining concept in that region. Today’s version increasingly pairs traditional ingredients such as<br />
corn, chilies and cilantro with trendier elements and techniques. Roaring Fork in Scottsdale, AZ, offers a Sugar & Chile-Cured<br />
Duck Breast with a gratin of green chile macaroni. Lonesome Dove Western Bistro in Fort Worth, TX, serves Seared Colorado<br />
Lamb Chops that are rubbed with guajillo chile powder and cumin, among other ingredients. The dish is accompanied by<br />
blueberry mole sauce. A side dish of Western Plaid Hash served with roasted beef tenderloin combines cabbage, jalapeno<br />
and green peppers braised in syrah wine with fried potatoes. The restaurant also pays homage to the one-pot meals once<br />
popular with cowboys by offering upscaled versions such as Braised Pork Shank with Three Bean Ragout. (Restaurant<br />
Business 10/15/03 p50)<br />
KFC broke new television spots promoting fried chicken as part of a healthy diet and is distributing “Keep It Balanced”<br />
brochures encouraging consumers to eat in moderation. It has also reported that its Original Recipe Chicken Breast has fewer<br />
calories and less than half the fat of the Burger King Whopper. The chain also plans to roll out oven-roasted chicken strips<br />
served with chilled, marinated vegetables as a healthful alternative. (NRN Daily News Fax 10/29/03)<br />
Burger King is testing a line of salads that will reportedly launch sometime after the first quarter. Each will be topped with<br />
proteins and the chain is emphasizing its flame-broiling preparation method to differentiate the line. (Restaurant Business<br />
<strong>Menu</strong> Strategies Newsletter 11/26/03)<br />
International Activities |<br />
Burger King reportedly launched a self-service, limited-menu test outlet in London called Grill ‘N Go. It features the classic<br />
Whopper, fries, onion rings and drinks. In addition, it offers packaged chocolate bars, potato chips, fruit, yogurt and<br />
newspapers. If the test is successful, the kiosk-style concept will be rolled out across the U.K. (NRN 3/24/03 p3)<br />
Burger King is converting all of its Australian outlets to the Hungry Jack’s brand and abandoning the Burger King name in that<br />
country. The burger chain said it reached a “conceptual agreement” with longtime franchisee Hungry Jack’s PTY Ltd. to<br />
consolidate its almost 300 burger outlets under the Hungry Jack’s name. Hungry Jack’s PTY, with about 200 franchised units,<br />
already uses that name on all of its stores. The remaining 81 franchised BK outlets, which are owned by several entities, soon<br />
will be required to convert their stores to Hungry Jack’s. Burger King Corp. does not operate any corporate-owned outlets in<br />
Australia. Conversion costs were not disclosed. The change will make Hungry Jack’s the second largest burger chain in<br />
Australia. The company expects to open 100 new locations within the next five years. (NDNF 6/2/03)<br />
Burger King International opened its first restaurant in Cyprus. Located in Agia Napa, the unit is one of four slated to open in<br />
Cyprus over the next year. (NDNF 6/19/03)<br />
McDonald’s Restaurants of Canada Ltd. and Dairy Queen Canada have begun purchasing all their beef from Canadian<br />
producers, which have experienced flagging sales in the wake of a mad cow scare in that country. Canadian politicians had<br />
requested the change. In the past, McDonald’s 1,300 Canadian units purchased nearly 80% of their beef from Canadian<br />
producers. Dairy Queen, with 550 units in Canada, was the first chain to agree to alter its beef purchasing practices. The<br />
Saskatchewan Party Caucus said it also petitioned the Canadian arms of Wendy’s, Burger King and A&W to buy only<br />
Canadian beef. In related news, McDonald’s Restaurants of Canada planned to give away an estimated three million freehamburger<br />
coupons on August 22 to burger buyers at its stores. They may be redeemed through September 30. (NRN 8/4/03<br />
p3; NDNF 8/8/03)<br />
Technology |<br />
Burger King's purchasing arm, Restaurant Services, Inc. (RSI), has adopted the global standards of the EAN-UCC System for<br />
product identification. As part of the initiative, RSI has requested that its suppliers identify products using the Global Trade<br />
Item Number (GTIN). The results of such a move are a streamlined supply chain system, reduced shipping costs and<br />
improved inventory management. (Foodservice.com)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
93
<strong>RISE</strong> COMPANY PROFILE<br />
Restaurant Services, Inc. (RSI) selected EFS Network, Inc. as one of its solutions partners to provide supplier and distributor<br />
performance information. Under the agreement, EFS will provide a stream of data for RSI regarding the supply chain. RSI, a<br />
member-owned purchasing cooperative serving Burger King operators in the U.S., expected to complete testing of<br />
management reporting capabilities and supply chain performance reporting in August. (Company Release 8/12/03)<br />
Burger King launched an interactive nutrition guide on its Web site. The site features a calorie counter and a function offering<br />
menu suggestions based on the users’ original search choice. (NRN Daily NewsFax 11/14/03)<br />
Personnel |<br />
Bradley Blum, Chief Executive Officer<br />
John Chidsey, Chief Financial Officer<br />
Joe Soraci, Senior Vice President of Operations<br />
Russ Klein, Chief Marketing Officer<br />
Rick Brown, Senior Vice President of Marketing<br />
Glad Markunas, Vice President of Marketing<br />
Jim Hyatt, Vice President of Operations<br />
Pam Long, Vice President of Operations<br />
Burger King Corp.’s Chris Clouser, global marketing officer and president of Burger King Brands, has resigned but will serve<br />
as a senior marketing advisor. Clouser previously had worked with BK chairman John Dasburg at Northwest Airlines. In other<br />
news, BK kicked off a four-week promotion in which each of its children’s meals will include two toys. The toys feature Dragon<br />
Ball Z and Powerpuff Girls characters and have special codes that can be used on the Cartoon Network Web site for a chance<br />
to win prizes that include gift certificates and more toys. (NRN 3/3/03 p3; FIR 2/17/03 p7)<br />
Burger King chairman John Dasburg resigned to return to the airline industry. Dasburg, former chairman and chief executive of<br />
Northwest Airlines, will hold the same titles at DHL Airways, a 40-plane air cargo carrier based in Barrington, IL. He served as<br />
Burger King’s chairman for two years, during which the company completed its sale from Diageo PLC to a U.S. buyout team<br />
for $1.5 billion. Its new owners, made up of a team of investors led by Texas Pacific Group, said an announcement about a<br />
new chairman could come in April, when the 11,450-unit chain’s new board of directors has its first meeting. In other news,<br />
Andre LeCroix resigned as president of Burger King International, which oversees the company’s nearly 2,7000 units outside<br />
North America. He reportedly was named chairman and chief executive of Euro Disney. (NRN 3/31/03 p1 & 4/7/03 p76)<br />
Burger King elected David A. Brandon and Manny Garcia to its board. Brandon is chairman and CEO of Domino's Pizza, while<br />
Garcia is CEO of Pebbles Restaurants. (NRN Daily NewsFax 9/10/03)<br />
Burger King Corp. appointed Clyde Rucker senior vice president of diversity. Previously, Rucker was vice president of the<br />
Central Region for Burger King. (Nation’s Restaurant News 09/08/03)<br />
Burger King Corp. named Nish Kankiwala president of its international business. Previously, Kankiwala was president of<br />
Pepsi’s Europe division. (NRN Daily NewsFax 10/1/03)<br />
Burger King Corp. hired Peter C. Smith as chief human resources officer. Smith will also serve as a member of Burger King’s<br />
executive leadership team. (NRN Daily NewsFax 11/21/03)<br />
Burger King hired Joanne Lichten as chief nutritionist. Previously, Lichten served as president of NutriFit Consulting. The<br />
position is a newly created one for Burger King. (NRN Daily NewsFax 12/24/03)<br />
News & Other |<br />
Burger King announced a program to help struggling franchisees improve their finances. The chain has hired Trinity Capital, a<br />
financial-services firm based in Los Angeles, to serve as a neutral third party to negotiate resolutions to difficulties between<br />
franchisees, their bankers and the company. Of Burger King’s more than 8,000 U.S. restaurants, more than 90% are owned by<br />
franchisees and nearly 20% of its 1,000 U.S. operators are in financial distress. The announcement comes less than two<br />
months after Bradley Blum, formerly vice chairman of Darden Restaurants and president of its Olive Garden brand, joined the<br />
burger chain as chief executive. Blum stressed that BK is not offering direct financial assistance to franchisees nor waiving any<br />
royalty fees and he estimated it would take some 18 months to help operators resolve financial problems. He noted that BK<br />
franchisees must be profitable so that they can reinvest in their operations and fully staff their restaurants. The company<br />
estimates that 18%–20% of operators are behind on royalty payments. (NRN 2/17/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
94
<strong>RISE</strong> COMPANY PROFILE<br />
Burger King’s armed forces franchisee has prepared for possible war with Iraq by deploying two trailer kitchens to the Middle<br />
East to serve U.S. troops there. At least two more portable, trailer-based Burger King units were expected to be sent to the<br />
region. (NDNF 2/18/03)<br />
Pizza Hut and Burger King each opened fast-food outlets in Iraq in large trailers on a British military base in Basra. A portion of<br />
the profits reportedly is to be given to charities benefiting Iraq. (NRN 4/28/03 p3)<br />
Burger King will focus on its flame-broiling cooking method and on offering more healthful menu items, under the direction of<br />
its new chief executive, Brad Blum. He plans to introduce an enhanced salad line and has menu items in development that<br />
contain four grams of fat or less. Blum said he plans to introduce fewer new items than in the past but to launch them<br />
effectively, with market tests and “compelling advertising.” He also is developing strategies to reduce turnover at the restaurant<br />
level and plans to steer the chain’s marketing strategy away from discounting. Blum previously served as president of Darden<br />
Restaurant’s Olive Garden. In related news, the chain recently named Young & Rubicam of New York as the lead ad agency<br />
for its estimated $350 million account. (NRN 4/28/03 p4; NDNF 4/15/03)<br />
Burger King Corp. established an Operations Leadership Team to improve several areas of the business, including employee<br />
training, food taste, cooking processes, restaurant safety and cleanliness. The team is made up of Dave Gagnon, a Taco Bell<br />
veteran who was named the burger chain’s senior vice president for U.S. company restaurant operations; Rick Silva, former<br />
head of company restaurants and now senior vice president for eastern division franchise operations; Joe Soraci, who will<br />
serve as senior vice president for western division franchise operations; and Jim Hyatt, senior vice president of operations<br />
services and programs. The team reports to BK president Bob Nilsen, In separate news, Burger King hired Russ Klein as chief<br />
marketing officer, replacing Chris Clouser, who left the company in May. Klein previously served as chief marketing officer for<br />
7-Eleven. (NRN 6/2/03 p3)<br />
Burger King Corp. will redefine its image by replacing its “flame broiling” cooking slogan with “fire grilled” in a new ad campaign<br />
that was slated to debut in late May. Chief executive Brad Blum discussed his strategic direction for the chain at an annual<br />
operator gathering in Dallas that brought together 630 BK franchisees. The ad campaign, built around 30- and 60-second<br />
spots, was created by the company’s new ad agency, Young & Rubicam. Blum, who joined BK a few months ago after serving<br />
as vice chairman of Darden Restaurants, announced that three products will be unveiled this summer and fall. They will<br />
include the “juiciest burger that Burger King has ever had” and a healthier chicken product with just four grams of fat. Blum<br />
also plans to “significantly” trim the current menu. In other news, BK will launch a Guest Trac program that will track consumer<br />
satisfaction. Each month, more than 50 guests at each BK outlet will be surveyed randomly via telephone. (NDNF 5/12/03; FIR<br />
5/12/03 p2)<br />
Burger King Corp. introduced a limited-time Great American Burger and plans new leaner items. The new “indulgent” burger,<br />
priced at about $2.59, includes peppered bacon, whole-leaf lettuce, American cheese, seasoned mustard, a special sauce and<br />
a bakery-style bun. Burger King describes it as its “juiciest burger ever.” Company executives said that a fire-roasted chicken<br />
sandwich with four fat grams is expected to be rolled out nationwide this fall and premium salads are being developed. In<br />
addition to offering leaner options, the company also is overhauling operations and marketing as part of a turnaround strategy<br />
implemented by its new chief executive Brad Blum. He also is asking franchisees to consider a permanent 20¢ reduction in the<br />
price of the Whopper to $1.99 as a way to improve sales. Blum acknowledged that systemwide trends have been negative in<br />
the first half of 2003. (NRN 6/30/03 p6)<br />
Coca-Cola Co. is the subject of a whistleblower’s suit that raises fraud allegations. Federal prosecutors have launched a<br />
criminal investigation into allegations raised in the lawsuit, which was filed by a former Coke manager in May. These include<br />
claims that Coke employees rigged a market test to inflate the popularity of Frozen Coke at Burger King outlets in Virginia. In<br />
addition, the lawsuit said that some of Coke’s machines that produce the frozen drinks are defective, a claim that has been<br />
denied by Coke. After Coke announced that it was being investigated, Burger King said it is phasing out the sale of Frozen<br />
Coke at its restaurants and will no longer use Coke’s frozen carbonated beverage machines. Burger King is one of the soft<br />
drink-maker’s biggest customers. (CT 7/12/03 p2; NDNF 6/23/03)<br />
Burger King said it has reversed its decision to halt sales of Frozen Coke products following successful negotiations with<br />
Coca-Cola Co. No details of the agreement were disclosed. In July, Burger King chief executive Brad Blum had called the<br />
slush-type drink line “not strategically relevant” and ordered it removed from Burger King’s menu at the end of the summer.<br />
This followed the beverage company’s admission that a former employee had rigged a marketing test. Separately, Burger King<br />
added a new Fire-Grilled Chicken Caesar Club sandwich to its menu. Priced at about $3.49, the “salad in a sandwich” features<br />
romaine lettuce, Caesar dressing, parmesan cheese, grilled chicken and bacon on toasted sourdough bread. (NDNF 7/31/03<br />
& 8/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
95
<strong>RISE</strong> COMPANY PROFILE<br />
San Lorenzo (CA) Unified School district is the only district in the nation to have its own Burger King franchises. Its school<br />
board recently signed a new five–year contract for the venture. Sales at the Burger King units at Arroyo and San Lorenzo high<br />
schools will total $180,000 this year. About 8.5% of sales go to Burger King and the remainder covers operating costs and<br />
contributes to the district’s foodservice budget. The district also operates a Blimpie Subs & Salads unit. (R&I 7/15/03 p82; FSD<br />
7/15/03 p12)<br />
Baghdad International Airport’s Burger King says it is selling at least 6,500 burgers per day. The airport is controlled by the<br />
U.S. military. (FIR 7/21/03 p6)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
Burger King Corp. recorded 17 straight days of traffic gains from late-July to mid-August. During this period, franchisees<br />
reported double-digit sales gains. (Nation’s Restaurant News 9/8/03 p97)<br />
Burger King announced a major restructuring of U.S. operations, which includes expansion of its number of operating divisions<br />
from five to nine, with each to be overseen by new division vice presidents. In addition, the company created several new<br />
posts with an eye on consistent operations, tracking customer satisfaction and increasing franchisee support. The company<br />
said it scheduled a late-September launch for its chicken baguette sandwich, which will have four grams of fat and feature<br />
bread baked off in each restaurant’s existing ovens. It also is reportedly developing a “steakburger” offering. A company<br />
spokesman said company-owned Burger King units had 20 straight days of positive same-store sales in August, which were<br />
attributed to stronger marketing, a new focus on operations and the new chicken Caesar club sandwich. Franchisees also<br />
were reporting positive gains. The new personnel assignments include 14-year veteran Bob Schisler, who was named senior<br />
director of operations excellence. Four of the new division vice presidents will report to Rick Silva, senior vice president of<br />
franchise operations for the Eastern Zone, and the remaining five will report to Joe Soraci, who will be Silva’s counterpart for<br />
the Western Zone. The Eastern division vice presidents are Jim Joy, Northeast; Bob Kozura, Mid-Atlantic; Joe Christina,<br />
Southeast; and Rich Wyckoff, Mid-South. The Western division vice presidents are Richard Coats, Midwest; Angel Herrera,<br />
South-Central; Diana Petrovich-Tao, Mountain; Ann Striker, Southwest; and Todd Bartmess, Northwest. In addition, Larissa<br />
Siegel was named director of operations analysis and systems to run the company’s Guest Trac program, which will gauge<br />
feedback on restaurant cleanliness, friendliness, speed of service and temperature and taste of food. (NDNF 8/29/03; NRN<br />
8/25/03 p1)<br />
Coca-Cola Co. reportedly may end up paying Burger King and its franchisees almost $22 million to heal the rift caused by<br />
Coke’s admission that a former employee had rigged a Frozen Coke marketing test in Richmond, VA. Coke reportedly has<br />
indicated that it would pay $1,000 to U.S. Burger King franchisees for each restaurant with Frozen Coke dispensers as of May<br />
2000—some $8.4 million—and up to a total of $5.4 million for repairs to the dispensers. In addition, it would pay an estimated<br />
$900,000 to reimburse franchisees who lost money selling the drinks and would pay Burger King Corp. $6.4 million, which<br />
would be used for advertising to help boost traffic. In turn, the Miami-based chain rescinded its plan to stop selling Frozen<br />
Coke items. In related news, Tom Moore, the Coca-Cola Co. executive who knew that a former employee had tampered with<br />
the Frozen Coke test results, stepped down as president of Coke’s foodservice and hospitality division. He was replaced by<br />
Chris Lowe, who previously served as Coca-Cola’s chief marketing officer for North America. (NDNF 8/13/03 & 8/26/03)<br />
AmeriKing requested an extension for its sole right to file a reorganization plan and lobby for creditor support under Chapter 11<br />
protection, according to published reports. The company, the second-largest Burger King franchisee with 284 units, reportedly<br />
is trying to sell its assets on a market-by-market basis. It apparently is working with Burger King Corp. to find potential buyers.<br />
AmeriKing reportedly asked the U.S. Bankruptcy Court in Wilmington, DE, to approve a December 31 deadline for filing a plan<br />
and a March 31, 2004, deadline to lobby for creditor support. (NDNF 10/6/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
96
<strong>RISE</strong> COMPANY PROFILE<br />
Burger King’s new chicken baguette sandwiches are being pitched by Chicago chef-restaurateur Rick Bayless, who owns fourstar<br />
Topolobampo Mexican restaurant and is well-known via his TV cooking show. Bayless is appearing in commercials for the<br />
Santa Fe Baguette sandwich, which he says has fewer processed ingredients than normally found in fast-food offerings. He<br />
will donate all proceeds from his work with Burger King to the Frontera Farmer Foundation, which supports small farms that<br />
supply restaurants in the Chicago area. The new baguette line includes three sandwiches, each with five grams of fat and 350<br />
calories. They are being unveiled individually, with the Santa Fe with roasted tomatoes, peppers and onions and Southwest<br />
sauce followed by the Savory Mustard Chicken, which will be followed weeks later by the Smoky Chicken Baguette topped<br />
with roasted tomatoes, peppers, onions and barbecue sauce. They have a suggested price of $2.89. A Lite Combo Meal with<br />
a baguette sandwich, side salad and bottled water is $4.59. Burger King noted that it is interested in potentially expanding its<br />
relationship with Bayless. (NRN 9/29/03 p4; CT 10/13/03 p5-1)<br />
Burger King added a Domino’s executive and a former franchisee to its board of directors. Chairman and chief executive David<br />
A. Brandon’s company, Domino’s Pizza, is owned by Bain Capital, part of the consortium led by Texas Pacific Group and<br />
including Goldman Sachs Capital Partners that purchased Burger King last December. Manny Garcia, a sometimes-vocal critic<br />
of Burger King’s management when he was a franchisee, also was added to the board. He currently is chief executive of<br />
Pebbles Restaurants in Longwood, FL, a casual chain that he founded. Burger King’s board also includes the chain’s chief<br />
executive, Brad Blum, president Bob Nilsen and representatives from each of its three owners. Serving as board chairman is<br />
Dick Boyce, a Texas Pacific partner. (NRN 9/22/03 p191; RB 10/15/03 p15)<br />
Burger King Canada rolled out low-fat combo meals with fewer than seven grams of fat at its more than 350 stores. The first<br />
offerings under the “BK Under 7 Combos” are a BK veggie burger and grilled chicken sandwich, each paired with a baked<br />
potato or side salad and a soft drink or Dasani water. U.S. outlets are not offering the same program but introduced the bottled<br />
water and side salad combo meal options with its chicken baguette sandwiches in late September. (NDNF 10/7/03)<br />
Burger King for the third quarter, reported comparable store sales decreased 6.4%. (Restaurant Business Daily News<br />
11/13/03)<br />
Burger King reported that most restaurants are still experiencing declining sales despite new marketing efforts. According to<br />
CEO Brad Blum, some franchisees saw a short-term sales boom over the summer but few maintained that growth for the<br />
quarter. (FIR 10/6/03 p6)<br />
KFC broke new television spots promoting fried chicken as part of a healthy diet and is distributing “Keep It Balanced”<br />
brochures encouraging consumers to eat in moderation. It has also reported that its Original Recipe Chicken Breast has fewer<br />
calories and less than half the fat of the Burger King Whopper. The chain also plans to roll out oven-roasted chicken strips<br />
served with chilled, marinated vegetables as a healthful alternative. (NDNF 10/29/03)<br />
Diets are becoming popular branding opportunities for restaurants, celebrity chefs and fitness gurus. With the recent<br />
partnerships between chef Rick Bayless and Burger King, as well as Oprah’s personal trainer, Bob Greene, and McDonald’s,<br />
aligning with and promoting branded diets has become a new way to attract the nation’s millions of dieters. Private diet<br />
companies are also teaming with operators, as noted by agreements between Weight Watchers and Applebee’s and Atkins<br />
Nutritionals and Blimpie Subs & Salads, which stocks the diet company’s low-carb Cruncher Chips. (NRN 11/3/03 p4)<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
AmeriKing sold 127 of its Burger King restaurants to Core Value Partners for $13.2 million. (Restaurant Business Daily News<br />
12/4/03)<br />
Burger King franchisee Al Cabrera is leading a group of investors who will buy 131 BK units from AmeriKing, formerly the<br />
chain’s largest franchisee but which is now selling off restaurants as part of a liquidation. Cabrera’s Miami-based group, which<br />
formed a private equity fund called the Core Value Group, includes three Miami businessmen as well as a BK franchisee from<br />
Wyoming. The new franchise group they are forming will be called Heartland Foods Corp. They are said to be seeking to buy<br />
restaurants from Burger King as well as other restaurant brands. Cabrera is president of BK’s Hispanic Franchise Association<br />
and on the board of directors of the chain’s national Franchisee Association. Federal bankruptcy court has approved the<br />
group’s purchase of the AmeriKing units, with 89 of the stores in the Chicago area and the rest reportedly in Springfield, IL,<br />
western Indiana and Wisconsin. (NDNF 12/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
97
<strong>RISE</strong> COMPANY PROFILE<br />
Burger King franchisee Carrols Corp. said the chain is testing a line of salads expected to be launched nationwide after next<br />
year’s first quarter. Carrols’ 351 restaurants had a 6.4% decline in same-store sales for the third quarter (ended September<br />
30). Burger King would not comment on the scope of its salad test. It previously had said that more than 30 menu items are in<br />
test. Separately, Burger King launched an interactive nutrition guide on its Web site that allows customers to assess meals<br />
based on their dietary needs. The guide includes a calorie counter and a function offering menu suggestions based on a user’s<br />
search choice. (NRN 12/1/03 p4; NDNF 11/14/03)<br />
KFC Corp. is discontinuing TV spots portraying its fried chicken as a diet alternative to hamburgers such as Burger King’s<br />
Whopper. Although the move follows a deceptive-advertising complaint to the Federal Trade Commission, KFC said the ads<br />
had run their normal course after airing for nearly four weeks. The campaign was the first developed by the chain’s new ad<br />
agency, Foote, Cone & Belding, and the first under new KFC president Gregg Dedrick and new marketing chief Scott Bergren.<br />
In related news, People for the Ethical Treatment of Animals said that comedian and civil-rights advocate Dick Gregory and<br />
Cornel West, an author and Princeton University professor, are urging KFC to require its chicken suppliers to improve their<br />
animal-handling procedures. The two reportedly wrote letters to KFC chairman and chief executive David Novak asking that<br />
KFC approve PETA’s basic list of guidelines, which includes killing with gas rather than electric stunning or throat-slitting and<br />
the mechanical collection of birds rather than hand-grabbing, which can break wings. KFC responded that it buys quality<br />
chicken from trusted brands such as Perdue, Tyson and Pilgrim’s Pride. (NRN 11/7/03 p80, 11/24/03 p80 & 12/1/03 p3)<br />
Burger King’s french fries have a higher combined level of trans fatty acids and saturated fats than those from McDonald’s or<br />
Wendy’s, according to Consumer Reports’ November issue, which compares the three largest burger chains’ fries. A mediumsized<br />
serving of Burger King’s fries has 11 combined grams of the two fats, compared to 7.5 grams at Wendy’s and 10 grams<br />
at McDonald’s. McDonald’s had said that it would cut trans fats in its fries by nearly 50% by early 2003, but it now says that it<br />
has no timeframe and is continuing its ongoing tests in good faith. Wendy’s and Burger King say they are considering<br />
alternative oils. Consumer Reports noted that lower-trans-fat oils “are not yet available in quantities needed by fast-food<br />
chains.” (NDNF 11/10/03)<br />
Burger King asked its franchisees to stop a recent practice of raising prices on certain menu items as a way to offset sales<br />
declines. The new line of baguette chicken sandwiches was specifically mentioned. In an internal voicemail, BK chief<br />
executive Brad Blum cautioned that the chain needs to make sure that its check average isn’t getting too high and instead<br />
make growing traffic a primary objective. He warned against allowing the price-value relationship to become imbalanced.<br />
Burger King cannot dictate prices to its franchisees, who operate more than 90% of Burger Kings in the U.S. Blum noted that<br />
he expects Burger King’s sales to turn positive “on an ongoing basis” next spring. In other news, former Burger King<br />
employees and job applicants filed a $103 million discrimination lawsuit against the chain. The lawsuit charges that managers<br />
of a BK outlet in Patchogue, NY, discriminated against black and white employees due to race, age or disability by cutting<br />
workers’ hours to give more work to Hispanic employees. Burger King said it had not seen the lawsuit but asserted that it<br />
embraces diversity through specific initiatives. (NDNF 11/17/03 & 12/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
98
California Pizza Kitchen<br />
Headquarters<br />
6053 W. Century Blvd. Suite 1100, Los Angeles, California 90045-6642 USA<br />
Tel: (310) 342 5000 Fax: (310) 568 7771<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 343,427 284,445 249,000<br />
Company-owned ($000) 303,427 246,445 210,000<br />
Franchised ($000) 40,000 38,000 39,000<br />
U.S. Number of Units 141 122 105<br />
Company-owned 117 99 82<br />
Franchised 24 23 23<br />
International Sales ($000) 15,650 15,271 13,555<br />
International Units 8 9 8<br />
Average Sales/Unit ($000) 2,265 2,214 2,560<br />
Concept Positioning |<br />
California Pizza Kitchen is an upscale chain that offers gourmet pizzas and distinctive pastas. Units are open seven days a<br />
week for lunch and dinner. The concept is often credited with popularizing the concept of gourmet or, as some call them,<br />
"California" pizzas. Units, located in affluent neighborhoods, are open for lunch and dinner. All are somewhat different, from an<br />
architectural standpoint, but have a common ambience—a warm, cheerful, casual setting dominated by an open kitchen, all of<br />
this giving a more sophisticated feeling to the decor than found at traditional pizza restaurants. New units have been updated<br />
to feature lighter woods and colorful pizza box art on the walls.<br />
Units range in size from 2,800 to 5,000 sq.ft. with a typical size in the 5,000–5,500 sq.ft. range. Key to the operation is its<br />
wood-burning oven. It bakes each pizza in about three minutes. This seals in the flavor of the ingredients used and imparts a<br />
natural smoky taste.<br />
The company has also developed a counter-service only version. Called California Pizza Kitchen ASAP, many units require<br />
just 600 sq.ft. of space. They have a limited menu. All are franchised and its largest franchisee, as well as joint venture<br />
partner, is HMS Host Corp. Most are located in airports. At the end of fiscal 2002, there were 24 ASAPs.<br />
Created by Larry Flax and Rick Rosenfield, attorneys-turned-restaurateurs, the first unit opened in Beverly Hills, CA, in 1985.<br />
In spring 1992, PepsiCo, Inc. purchased a substantial equity interest in the operation and then in 1997, exited the restaurant<br />
business by selling all its holdings including the California Pizza Kitchen 67.5% equity position. It was acquired by Bruckmann,<br />
Rosser, Sherrill & Co., a New York investment firm. The deal was completed in September 1997. In 2000, the company<br />
completed its first IPO, and it now trades on NASDAQ under the ticker symbol CPKI<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
99
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: thin crust, individual-sized pizzas with variety of toppings. Offerings include Original BBQ Chicken (its best<br />
seller) & Original Thai Chicken, Carne Asada, Grilled Garlic Shrimp, Rosemary Chicken-Potato, B.L.T., Vegetarian, Jamaican<br />
Jerk Chicken, Indian-spiced Tandoori chicken, Mushroom Pepperoni Sausage. The menu also features pastas such as<br />
Chicken Tequila Fettucini and Grilled Sausage & Pepper Penne; creative salads such as BBQ Chicken Chopped<br />
Salad;sandwiches; appetizers such as Tortilla Spring Rolls and delicious desserts. Full liquor service in most locations. <strong>Menu</strong><br />
Prices: $6.00-$12.49. Check Averages: $10.50<br />
Expansion Plans |<br />
LA Food Show, the new concept from Larry Flax and Rick Rosenfield, the creators and co-chairmen of California Pizza<br />
Kitchen, includes on its menu several dishes from popular Los Angeles restaurants. These include Roscoe’s Chicken and<br />
Waffles and some of the salads, which were first developed at other restaurants. Checks average $15 and annual sales are<br />
projected tat $3.2 million. Designed with many theatrical qualities, the Manhattan Beach, CA dinnerhouse has a bright red<br />
interior, display cooking, two balconies, plasma TVs and a bar. Wherever diners sit, they can see the whole restaurant. Flax<br />
expects the concept to open in malls. Five units are planned by the end of 2004, with most to be in Southern California. Flax<br />
and Rosenfield’s partner in the venture is California Pizza Kitchen. (Chain Leader)<br />
<strong>Menu</strong> Development |<br />
Southwestern flavors are used to create a unique pizza at Caioti Pizza Café in Studio City, CA. The proprietor of Caioti is Ed<br />
LaDou, who created some of the signature pies for California Pizza Kitchen—including its popular BBQ Chicken pie and a<br />
Caramelized Shallot & Potato version. The Chipotle pizza served at Caioti features smoked chicken, tomatoes and basil with a<br />
chipotle pepper sauce. (Pizza Today)<br />
Fruit is a common ingredient in desserts but is now gaining usage in savory applications such as appetizers, salads and<br />
entrees. As consumers become increasingly interested in Latin and Asian cuisines that incorporate fruit and healthful<br />
ingredients and fresh flavors become more in demand, fruit is ideally suited for a range of dishes. At 99 Restaurants, fruitbased<br />
sauces are used in several entrees such as the top-selling Oriental Teriyaki Chicken. It features two broiled chicken<br />
breasts glazed with sesame-pineapple sauce. That same sauce is also used as a dip for Lemon Crusted Salmon. Similarly, its<br />
Smokin’ Apple Bourbon Chicken Skillet consists of broiled chicken breasts glazed with apple-bourbon sauce and a topping of<br />
Pepper Jack cheese and smoked bacon. At California Pizza Kitchen, pears are used as a lighter topping for its Caramelized<br />
Pear & Gorgonzola Pizza. Meanwhile, O’Charley’s has found applications for fruit in several salads. Its Chicken Salad<br />
Supreme blends greens, fresh strawberries, mandarin oranges, dried cranberries and candied pecans with grilled chicken,<br />
while Pecan Chicken Tender Salad features the same base minus the strawberries, and utilizes pecan-crusted chicken. Citrus<br />
flavors are also quite popular, with lemons, limes, oranges and grapefruit among the most popular and versatile. At Lea in New<br />
York City, pan-seared, citrus-crusted halibut fillet is prepared with a dusting of zests from lemons, limes, oranges and<br />
grapefruits. Seasons 52, Darden’s Orlando test concept specializing in healthful foods, also relies on citrus zest for flavor.<br />
Dried orange and lemon zests are ground to a powder and sprinkled over fish and other foods. (Restaurant Business,<br />
Restaurants & Institutions)<br />
Pizza is increasingly showcasing inventive ingredients as an extension of a trend started by California Pizza Kitchen and chef<br />
Wolfgang Puck. While New York was the birthplace of the traditional version, it is also home to a number of “designer” pies. At<br />
Otto Enoteca Pizzeria the paper-thin pies are cooked on a griddle, and flavor varieties include: lardo (house-cured pork fat),<br />
raw fennel and shaved bottarga; whole clams; and Swiss chard and goat cheese. Fred’s specializes in a thin focaccia round<br />
that is spit horizontally and filled with robiola and white truffle oil. Gonzo features free-form pizza prepared on a grill. Toppings<br />
range from watermelon to roast-pumpkin puree with pancetta and caramelized onion. The boat-shaped pizza at Pie by the<br />
Pound is snipped with scissors and sold by the pound. Options include roast potatoes, ricotta, rosemary and walnuts or a BLT<br />
variety. (Bon Appetit, 9/03, p48)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
100
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Global ingredients are also appearing on more pizzas. As operators and chefs branch out from traditional Italian roots, pies are<br />
increasingly showcasing toppings more indicative of Asian, Indian or Mexican cuisines. California Pizza Kitchen has built its<br />
reputation on innovative pizzas. Its offerings range from an Asian-inspired Peking Duck featuring roasted duck, mozzarella,<br />
soy-glazed shiitake mushrooms, crispy wontons, green onion and ginger-hoisin sauce to a Tandoori Chicken Pizza with Indian<br />
accents. It is topped with Indian-spice marinated chicken, zucchini, yellow squash, cilantro, mozzarella and spicy tomatoyogurt<br />
curry with mango chutney on the side. An especially popular option is its Thai Chicken Pizza, which features peanutginger-marinated<br />
chicken, bean sprouts, carrots, cilantro and roasted peanuts. Company officials say it is the only pie to rival<br />
its best-seller: the Original Chicken Barbecue Pizza. Schlotzsky’s has also infused its pizza offerings with ethnic creativity. It<br />
now offers Kung Pao Chicken Pizza with roasted chicken breast, carrots, green onions, mozzarella, peanuts and Kung Pao<br />
sauce on an herbed sourdough crust as well as a Mediterranean Pizza with basil pesto, black olives, tomato, onion and feta<br />
and mozzarella cheeses. Many operators note that the decision to offer international pizza toppings allows them to make<br />
ethnic foods more accessible by using a familiar American format. They also note that it allows them to follow trends toward<br />
increasing consumer interest in ethnic foods. (Restaurant Business)<br />
Personnel |<br />
Casey Carrington, Chief Executive Officer<br />
Sarah Goldsmith-Grover, Vice President of Marketing<br />
Chris Ames, Vice President of Operations<br />
Karen Settlemyer, Director of Purchasing<br />
Brian Sullivan, <strong>Menu</strong> Development/R&D<br />
Richard Rosenfield, Chairman<br />
Larry Flax, Chairman<br />
Rudy Sugueti, Vice President of Operations<br />
California Pizza Kitchen vice president of real estate Tom Jenneman resigned. (NRN Daily NewsFax 11/7/03)<br />
News & Other |<br />
California Pizza Kitchen invested $2 million for a 25% stake in L.A. Food Show, the casual-dining concept created by Larry<br />
Flax and Rick Rosenfeld, CPK’s co-founders. Flax and Rosenfeld will invest $1 million each to own 75% of the company and<br />
CPK will own the rest. CPK will receive right of first negotiation for the 75% stake it does not currently control. The first L.A.<br />
Food Show will open in June in Manhattan Beach, CA. (FIR 3/17/03 p6; RB 4/1/04 p12)<br />
California Pizza Kitchen plans to cut its openings in indoor malls by roughly 50% as it increases its total number of<br />
freestanding units and locations in outdoor malls. Approximately half of the chain’s units are located in traditional malls<br />
anchored by large department stores. (FIN 4/28/03 p3)<br />
LA Food Show was opened in June in Manhattan Beach, CA, by California Pizza Kitchen founders Larry Flax and Rick<br />
Rosenfield. CPK holds a 25% stake in the “American grill and bar.” Plans call for four to five more outlets by the end of 2004.<br />
The family-casual concept’s exhibition kitchen is flanked by theatrical curtains and lighting and fronted by a 12-seat counter.<br />
The menu is divided into sections such as “Previews” for appetizers, “Featured Attractions” for main courses and “Extras” for<br />
side dishes. Among signature items are: “The Double Feature” burger with two-patties—char-grilled or cooked on a griddle—<br />
American cheese, lettuce, tomato and a signature sauce; Spin Dip ($7.50), a variation on spinach-artichoke dip; and Szechuan<br />
baby back ribs ($10.95). Salads, available in half- or full-portion sizes, include Three Crunch Chinese Chicken Salad and a<br />
prime-steak salad with slow-roasted Roma tomatoes and crumbled blue cheese. Also available is Herbed Rotisserie Chicken<br />
and Thai Rotisserie Chicken (both $13.95) as well as seafood, steaks and vegetarian entrees. CPK has the first option to buy<br />
out Rosenfield and Flax’s LA Food Show stake. The two brands are sharing vendors, technologies and systems but each will<br />
be kept separate. The initial restaurant is located near one of CPK’s top-grossing branches. Rosenfield and Flax reportedly<br />
retain a 7% ownership stake in CPK. (NRN 6/9/03 p1; WRC 6/23/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
101
<strong>RISE</strong> COMPANY PROFILE<br />
California Pizza Kitchen president and chief executive Fred Hipp resigned in the face of company co-chairman Larry Flax and<br />
Rick Rosenfield’s dissatisfaction with CPK’s real-estate strategy and the performance of new units. The pair returned to their<br />
roles as co-chief executives. Replacing Hipp on an interim basis is H.G. “Carey” Carrington, a former CPK chief financial<br />
officer and vice president who left the company in 2001. Before joining CPK in 1998, Hipp had a 17-year tenure at Houlihan’s.<br />
Rosenfield noted that Hipp’s departure centered around differing opinions related to brand expansion and the company’s fastcasual<br />
California Pizza Kitchen ASAP concept. He noted that CPK plans to devote resources to ASAP, which currently<br />
numbers three company outlets and 21 franchised units, of which 20 are airport outlets operated by concessionaire HMSHost.<br />
In addition, Flax noted that CPK may consider creating a fast-casual version of the new upscale-casual LA Food Show<br />
concept that he and Rosenfield recently opened in Manhattan Beach, CA. CPK holds a 25% ownership interest in the venture.<br />
(NRN 8/4/03 p1)<br />
California Pizza Kitchen Inc. for the third quarter ended September 28, reported revenues increased 18% compared to the<br />
same quarter a year ago. Net income decreased 3.9%. (NRN Daily NewsFax 10/28/03)<br />
California Pizza Kitchen Inc. for the third quarter ended September 28, reported revenues increased 18% to $93.1 million<br />
compared to the same quarter last year. (Nation’s Restaurant News 11/10/03 p44)<br />
P.F. Chang’s China Bistro was the highest-ranked restaurant company on Forbes magazine’s “200 Best Small Companies” list<br />
this year. It ranked No. 24 and was followed by Krispy Kreme Doughnuts at No. 29. Also on the list were Sonic Corp., Total<br />
Entertainment Restaurant Corp., Panera Bread, California Pizza Kitchen and IHOP Corp. (NDNF 11/19/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
102
Canyon Cafes<br />
Headquarters<br />
150 Hancock Street, Madison, Georgia 30650 USA<br />
Tel: (913) 982 1203 Fax:<br />
www.canyon-cafe.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 26,976 32,129 39,600<br />
Company-owned ($000) 26,976 32,129 39,600<br />
Franchised ($000) - - -<br />
U.S. Number of Units 4 14 17<br />
Company-owned 4 14 17<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,150 2,300 2,329<br />
Concept Positioning |<br />
Avado Brands’ Canyon Cafes chain separates itself from others in the Southwestern casual dining group by offering menu<br />
variety and service attention to its overall guest experience. In addition to its Canyon Cafes name, two other brand names are<br />
used: Sam’s Cafe (including its original location in Dallas) and Desert Fire (with two located in the Seattle market). Many of its<br />
menu items are made on-premise from fresh ingredients. Alcoholic beverages accounted for some 19% of sales in 2000.<br />
Units, which are either at an end-cap, in-line or freestanding location, average 6,000–7,000 sq. ft. and typically seat 190 in the<br />
dining areas as well as an average of 26 at a bar and 45–50 in patio areas. Reflective of its roots, influences of Texas, New<br />
Mexico, Arizona and Native American cultures move beyond just its menu. The décor reflects surfaces and colors known to<br />
the American Southwest and features genuine wrought-iron artifacts, light fixtures, a heavy use of ponderosa pine timbers and<br />
rustic dining chairs.<br />
The chain began in 1989 in downtown Dallas under the name Sam’s Cafe after Jack Baum acquired the failing concept. After<br />
revising and re-establishing it, Baum then opened other Sam's before adopting the name Canyon Cafe because of its<br />
Southwest connotation. In June 1997, Avado Brands, Inc. acquired the company for $36 million in cash and stock. In<br />
December 2002, Avado divested the chain, which is now led by management group Canyon Café LLC.<br />
Current management includes Doug Czufin, president and chief operating officer.<br />
<strong>Menu</strong> Positioning |<br />
Southwestern foods including pastas such as Desert Fire Pasta, tacos, entree salads and sandwiches as well as Chile<br />
Rubbed Grilled Tuna and Chipotle Chicken, Pecan-crusted Crab Cakes, applewood-smoked Pecan Salmon, steaks, pork<br />
chops, chicken and seafood. Full bar service available. <strong>Menu</strong>s extensive list of wines and signature margaritas. .Separate<br />
lunch and dinner menus used. <strong>Menu</strong> Prices: Lunch—$8.95–$11.95; dinner—$6.95–$16.95. Check Averages:$10–$13 at lunch<br />
and $15–$20 at dinner.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
103
Capital Grille, The<br />
Headquarters<br />
8215 Roswell Rd., Atlanta, Georgia 30350 USA<br />
Tel: (770) 399 9595 Fax: (770) 399 7796<br />
www.rarehospitality.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 88,600 80,100 65,394<br />
Company-owned ($000) 88,600 80,100 65,394<br />
Franchised ($000) - - -<br />
U.S. Number of Units 15 15 12<br />
Company-owned 15 15 12<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,909 5,625 5,449<br />
Concept Positioning |<br />
The Capital Grille is a fine dining steak concept, with locations in major metropolitan cities, boasts an atmosphere of power<br />
dining and relaxed elegance. Units are freestanding and average 7,000–8,500 sq.ft.; with seating for 180–200 persons. Private<br />
dining accommodations are featured at all locations. Appealing to a more affluent, upscale market, its sites are individually<br />
created in keeping with locality, historical significance, etc. Features generally include coffered ceilings, mahogany millwork<br />
and custom lighting as well as Oriental rugs, marble and hardwood floors, polished brass and beveled glass.<br />
Each location boasts a wine list featuring more than 300 wines and numerous specialty cocktails are available.<br />
The concept was developed by Bugaboo Creek Steakhouse and is now owned by Rare Hospitality International as the result<br />
of that company’s acquisition of Bugaboo Creek in 1996.<br />
Current management includes John Martin, vice president operations The Capital Grille.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: On-premise dry-aged steaks including 24 oz signature porterhouse and grille’s sliced filet . Also includes lamb<br />
and veal chops, a variety of fresh grilled seafood and chicken and 1 to 5-lb broiled lobster. Sides range from Sam’s potatoes to<br />
asparagus with hollandaise sauce. Appetizers include signature pan-fried calamari, cold shellfish platter and beluga caviar;<br />
desserts include crème brule and flourless chocolate espresso cake.Full liquor service available; wine list features more than<br />
300 selections. <strong>Menu</strong> Prices: $9.95–$31.95. Check Averages: $50.00<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
104
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Capital Grille for the third quarter ended September 28, reported same-store sales increased 13.5%. (NRN Daily NewsFax<br />
10/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
105
Captain D's<br />
Headquarters<br />
1717 Elm Hill Pike Suite A-1, Nashville, Tennessee 37210 USA<br />
Tel: (615) 391 5461 Fax: (615) 231 2790<br />
Ownership: Private<br />
Segment: Limited Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 496,538 486,057 495,313<br />
Company-owned ($000) 298,605 300,415 314,671<br />
Franchised ($000) 197,933 185,642 180,642<br />
U.S. Number of Units 565 562 564<br />
Company-owned 330 342 360<br />
Franchised 235 220 204<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 883 865 874<br />
Concept Positioning |<br />
Captain D's are seafood restaurants that offer sit down, takeout, and drive-through service from 11 a.m. to 11 p.m. Although<br />
customers pick up their orders at the service counter, waitresses pour second cups of coffee and offer dessert. The primary<br />
customer base is 18–44 year olds. Most seafood is freshly prepared at the store and cooked to order. Beer is served at a small<br />
number of units.<br />
Units average 2,400 sq. ft., with a drive-through window and seating for 72–90 people. The company continues to update its<br />
units. Wood-sided exteriors will be changed to seaberry; more windows will be added and lighting of both its nautical interior<br />
and exteriors enhanced. A new redesigned graphics-oriented drive-thru menu will be added.<br />
Captain D’s also added a smaller prototype called the D’s Express in fiscal 2001. The unit is designed for strip shopping center<br />
sites.<br />
In addition, the chain is in the process of repositioning itself, moving into the quick-casual segment. To accomplish this, it has<br />
upgraded both food and service as well as overall unit ambiance.<br />
Headquarters locks in fish prices with one-year contracts. There is a commissary, a red meat plant, and a fish-processing<br />
plant. A fleet of company-owned trucks handles distribution.<br />
In 1969, Shoney's launched a new concept called Mr. D's. In 1975, a nautical theme was adopted and the name changed to<br />
Captain D's. The franchise program was instituted in 1974.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: fried, broiled and baked fish. Also shrimp, stuffed crab, fried clams, seafood and boneless breast of<br />
chicken.New menu items include glazed broiled salmon, blackened fish and Shrimp Mardi Gras—crispy-coated fried<br />
shrimpDinners served with fries, hush puppies and coleslaw. Other sides: fresh vegetables, green and white beans and tossed<br />
saladsContinuing implementation of Coastal Classics such as catfish feast, fried Gulf Coast Oysters and flounder and broiled<br />
fish such as orange roughy and rainbow trout—priced $5.99 and up. <strong>Menu</strong> Prices: $2.99–$7.99. Check Average: $5<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
106
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Captain D’s rolled out Homestyle Crunch Fish systemwide. The new offering is rolled in Japanese bread crumbs, fried and<br />
served with jalapeno tartar dipping sauce. Available through July 13, it is being featured in three promotions: with two pieces of<br />
fish, fries and hushpuppies ($3.99), as a three-piece dinner with fries, cole slaw and hush puppies ($4.99) and as a<br />
combination meal with two pieces of fish, five butterflied shrimp, fries, cole slaw and hushpuppies ($5.99). (NRN Daily<br />
NewsFax)<br />
Non-fried options are becoming increasingly common on Captain D’s menu. In a bid to expand its appeal beyond core users,<br />
which typically favor fried seafood, the chain has added several broiled options as more healthful alternatives. Examples<br />
include: ■ Seaside Shrimp Scampi—tail-on shrimp in garlic butter sprinkled with parmesan and served on a bed of rice with<br />
baked potato, side salad and bread stick ($6.59) ■ Broiled Pacific Northwest Salmon—broiled with bourbon sauce and served<br />
over rice with a baked potato, salad and breadstick ($6.79) ■ Broiled Supreme Seafood Platter—shrimp, fish and seafoodstuffed<br />
scallop shells with rice, baked potato, mixed vegetables, breadstick and side salad ($6.39) ■ Broiled Fish Platter—two<br />
broiled fillets over rice with mixed vegetables, baked potato, breadstick and side salad ($5.99). (Chain Leader, 7/03, p47)<br />
Franchise Activity |<br />
Captain D’s Seafood turned over control and management of the chain’s $170 million-a-year purchasing budget to its<br />
franchisees. (Nation’s Restaurant News 9/8/03 p1)<br />
Signed seven franchisee agreements calling for the opening of 34 new units. Serve Holdings LLC agreed to develop 15 units<br />
and take control of 20 existing units in the Memphis area. National Treasures LLC plans to open eight units in Toledo, OH.<br />
Three units will be opening in Atlanta by Seahorse Group LLC, and David Chunn plans to develop four units in Hattiesburg,<br />
MS. Ashrafboulos signed on to open two units in Texas, and Jim and Valerie McClure will add one outlet in Dahlonega, GA.<br />
An additional unit will be opened in Danville, KY, by Tom Simms. (NRN Daily NewsFax 11/12/03)<br />
Technology |<br />
Shoney's Inc. reported that it has reduced labor costs and session errors by using XcelleNet, Inc.'s RemoteWare and Multicast<br />
data-management software. The operator of Shoney's and Captain D's attributes the reduction in costs to a streamlined data<br />
interchange to and from 514 company-owned outlets and 20 franchised units. (Nation's Restaurant News)<br />
Personnel |<br />
Ronald Walker, President<br />
Mike Payne, Chief Financial Officer<br />
Gary Wilson, Senior Vice President of Operations<br />
Jeffery Suber, Director of Purchasing<br />
William Nelson, Vice President of Marketing<br />
Cindy Tooley, Director of Marketing<br />
Captain D’s Seafood hired Michael T. Folks as vice president and general counsel. Previously, Folks was counsel and chair of<br />
the franchise and distribution practice group at the law firm of Dinsmore & Shohl. (NRN Daily NewsFax 10/28/03)<br />
Captain D’s Seafood hired Michael T. Folks as vice president and general counsel. In the newly created post, Folks will<br />
oversee all legal activities for company-owned and franchised segments, as well as corporate matters. (Nation’s Restaurant<br />
News 11/10/03 p128)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
107
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Captain D’s will expand the menu and revamp the look of up to 150 company-owned units by the end of this year. The<br />
expanded menu now includes orange roughy, salmon and oysters as well as a new children’s meal program. The stores’<br />
physical makeover features a faux white-washed finish exterior and a more cozy interior, made possible by a retrofit of the<br />
dining room’s equipment and furniture. Also being reworked is the drive-thru. Exterior and interior changes cost an estimated<br />
$50,000 per store. The first outlet with the new look opened last November in Columbus, GA. Seating 68, the 2,400-sq.ft. unit<br />
has thus far exceeded Captain D’s expectations. (QSR 2/03 p11; SBR 2/03 p8)<br />
Captain D’s rolled out a new Homestyle Crunchy Fish variety systemwide. The item is rolled in Japanese-style breadcrumbs,<br />
fried and served with jalapeno tartar dipping sauce. It will be available through mid-July. (NRN 6/2/03 p56)<br />
Captain D’s said that the Army and Air Force Exchange Service will open the chain’s first international outlet in June on<br />
Okinawa Air Force Base in Okinawa, Japan. The 112-seat eatery will be the first sit-down and drive-thru Captain D’s located<br />
on a military base. Three Captain D’s are operated by AAFES in food courts on three U.S. bases. (NDNF 5/27/03)<br />
Captain D’s Seafood opened its fourth outlet on a U.S. military base at Camp Foster, a Marine base in Okinawa. The 112-seat,<br />
freestanding restaurant is the brand’s first international outlet. Operated by the Army and Air Force Exchange Service, it joins<br />
three Captain D’s on military bases: Travis Air Force Base in Fairfield, CA; Nellis Air Force Base in Las Vegas; and Lackland<br />
Air Force Base in San Antonio. Each of those is located in a food court. Additional Captain D’s are slated to open at Fort Hood<br />
in Killeen, TX, and at Fort Bragg in Fayetteville, NC. A total of 10 outlets are planned for U.S. and overseas military bases over<br />
the next few years. (SBR 7/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
108
Caribou Coffee<br />
Headquarters<br />
615 N. Third St., Minneapolis, Minnesota 55401 USA<br />
Tel: (612) 359 2706 Fax: (612) 359 2730<br />
www.caribou-coffee.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 115,000 100,000 80,000<br />
Company-owned ($000) 115,000 100,000 80,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 207 185 155<br />
Company-owned 207 185 155<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 590 590 516<br />
Concept Positioning |<br />
Caribou Coffee is a regional chain of limited-service coffeehouse restaurants. Its Alaskan lodge theme features comfortable<br />
couches, fireplaces, granite counter tops, slate and pine floors, and pine millwork to create "a neighborhood gathering place"<br />
for coffee and fresh baked goods. Each store has its own personality with local amenities. Kiosks average 250–500 sq. ft. and<br />
coffeehouses range from 1,600–2,000 sq. ft. with seating for 25–40 people. All units operate in densely populated urban and<br />
suburban areas and attract 25–55 year-old customers.<br />
Specific kiosks sites include operations in several supermarket chains: Byerly’s, Lund’s, and Heinen’s in Cleveland.<br />
Food accounts for just 15% of sales, while beverages make up 70%. Whole bean retail sales constitute another 10%. Coffee<br />
brewing equipment and branded merchandise are also available.<br />
John and Kim Puckett opened the first Caribou Coffee in December 1992, in Edina, MN. In late 2000, the chain was acquired<br />
by Crescent Capital Investment Inc.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong>s regular and specialty coffee drinks, espresso drinks, sandwiches, premium baked goods, pastries and gourmet whole<br />
bean coffees. Some 25 coffee varieties and blends available. Caribou offers an array of special promotional espresso<br />
beverages such as Cinnamon Swirl Latte, Northwoods Latte, Mint Oreo Cooler, etc. on a seasonal basis.<br />
Expansion Plans |<br />
Caribou Coffee plans to build up to 55 new units this year in existing markets. About 75% of sales at its 207 company-owned<br />
stores come from brewed coffee. (RB 4/1/03 p27)<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
109
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Caribou Coffee rolled out the Skinny ‘Bou line of low-carbohydrate lattes. The lattes come in vanilla and caramel flavors and is<br />
one-fifth the carbohydrates of the chain’s regular lattes. (NRN Daily NewsFax 1/9/04)<br />
Technology |<br />
Caribou Coffee will test a Caribou Card declining balance card in five Columbus, OH-area locations. Available in amounts from<br />
$5–$500, the cards can be bought and reloaded in the store and at www.CaribouCoffee.com. Cardholders also can check<br />
card balances on the Web site. (MFN March-April/03 p46)<br />
Caribou Coffee will test a prepaid Caribou Card at five Columbus, OH-area units. Available in amounts from $5–$500, the<br />
cards can be bought and reactivated in the store and at www.Caribou.com. Cardholders also can check card balances on the<br />
Web site. (Midwest Foodservice News)<br />
Caribou Coffee is testing high-speed wireless Internet access at 10 stores in Chicago. Partnering with US Internet Corp.,<br />
Caribou is offering 15 minutes of free access and charging $1 for the first hour and $3 for the day. (NRN Daily NewsFax<br />
10/15/03)<br />
Caribou Coffee is testing high-speed wireless Internet access at 10 stores in Chicago. Partnering with US Internet Corp.,<br />
Caribou is offering 15 minutes of free access and charging $1 for the first hour and $3 for the day. (NDNF 10/15/03)<br />
Personnel |<br />
Michael Coles, Chief Executive Officer<br />
George Mileusnic, Chief Financial Officer<br />
Paul Turek, Vice President of Operations<br />
Chris Toal, Director of Marketing<br />
News & Other |<br />
Caribou Coffee hopes to grow to 500 locations, possibly with franchising. It currently has more than 200 outlets in nine states<br />
and Washington, DC. Management wants to enhance the menu, co-brand with strategic partners and offer mail-order<br />
products. The chain recently rolled out a chewing gum line packaged in metal containers and it is considering revamping its<br />
food offerings as well as expanding the desserts line and creating an on-site bakery. (FIR 6/23/03 p4)<br />
Caribou Coffee Co. will begin serving Coca-Cola Co. beverages at about 200 of its locations. The chain will offer Coke’s<br />
carbonated beverages and bottled water brands along with Odwalla brand juices. (NDNF 6/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
110
Carl's Jr.<br />
Headquarters<br />
401 W. Carl Karcher Way P.O. Box 4349, Anaheim, California 92803-4349<br />
USA<br />
Tel: (714) 774 5796 Fax: (714) 490 3639<br />
www.carlsjr.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,037,574 1,063,642 939,000<br />
Company-owned ($000) 507,526 517,000 475,000<br />
Franchised ($000) 530,048 546,642 464,000<br />
U.S. Number of Units 942 926 945<br />
Company-owned 440 443 491<br />
Franchised 502 483 454<br />
International Sales ($000) 37,000 39,500 38,000<br />
International Units 39 43 32<br />
Average Sales/Unit ($000) 1,186 1,178 967<br />
Concept Positioning |<br />
CKE Restaurants owns and franchises a fast-food chain operating under the trade name, Carl’s Jr. The units have semiservice<br />
except at high-traffic locations. Customers place their orders and pay for them upon entering; then food is delivered to<br />
the table after it has been prepared.<br />
Takeout is available and some two-thirds of the units have drive-through windows (currently accounting for about 40% of<br />
sales). Many are open 24 hours a day. In addition, all California stores have automatic teller machines on-premise for<br />
customer use.<br />
Most units are freestanding requiring 2,500–4,000 sq.ft. of space and seating for 65–115 patrons. A few are in malls or in-line<br />
buildings. Currently, three building plans are used; most of them constructed with drive-through facilities. A kiosk prototype has<br />
also been developed. Interior ambiance is light, airy, and friendly, with food murals, display cases for salads and desserts and<br />
bright colors and accent lighting used throughout the dining area.<br />
As part of a dual-branding program, it also is menuing Green Burrito items. Customers order from either menu at the same<br />
counters or drive-throughs. The Green Burrito menu features a broad range of traditional Mexican entrees such as burritos,<br />
tostadas and nachos. Dual-branding allows a single restaurant to offer consumers two distinct brand menus.<br />
In addition, Carl’s Jr. units are being co-branded with its sister brand, Hardee’s. They continue to serve Hardee’s breakfast<br />
items but have combined Carl’s burgers and chicken sandwiches with Hardee’s biscuits. Initial results are promising and<br />
same-store sales have shown increases.<br />
All supplies, except bakery products, are centrally purchased. The company also operates two Carl’s Jr.distribution centers (in<br />
southern and northern California).<br />
Carl N. Karcher opened his first hot dog stand in 1941 in Los Angeles and the first Carl's Jr. in Anaheim in 1956. In 1994, its<br />
present corporate name was adopted. Current management includes Mike Liby, senior vice president of operations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
111
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: wide variety of charbroiled hamburgers including the Famous Star, Western Bacon Cheeseburger & Super<br />
Star(R), Charbroiler Chicken Sandwiches(R), Crispy Chicken Sandwiches(R), Charbroiled Sirloin Steak Sandwich, Sourdough<br />
Bacon Cheeseburger & Spicy Chicken Sandwich. Debuted Sourdough Ranch & Pepperjack Cheeseburgers in Fy ‘01.<br />
Other items stuffed baked potatoes, fries, all-you-can-eat salad bar, onion rings, fried zucchini, chicken, steak & fish<br />
sandwiches & desserts. Most have self-service salad bars. Also all-you-can-drink beverage bar.<br />
Breakfast: Sunrise & sourdough sandwiches, breakfast burrito, French Toast Dips, pastries & muffins, eggs, bacon &<br />
sausages.<br />
Introduced “The Six Dollar Burger. Only $3.95.” The burger, which was introduced to units in Southern and Northern California<br />
as well as in Oklahoma in June, August and October, respectively, has become the concepts most successfully menu item in<br />
the last 10 to 15 years. A promotional campaign, relying most heavily on TV ads, was launched to market the burger. The halfpound<br />
burger is topped with red onions and bread-and-butter pickles as well as tomatoes and lettuce.<br />
Promotion Plans |<br />
Carl’s Jr. will launch ads starring Hugh Hefner in a campaign targeting 18 to 34 year-old men. (NRN Daily NewsFax 10/31/03)<br />
<strong>Menu</strong> Development |<br />
Carl’s Jr. debuted a Western Six Dollar Burger as a limited-time offer. It features a 5.5-oz. beef patty topped with two slices of<br />
American cheese, three strips of bacon, three onions rings and barbecue sauce on a seeded bun. Available through August<br />
27, it is priced at $4.29 or $5.99 as part of a combo meal. The sandwich is the latest in a line that is designed to offer casualdining<br />
quality. Previous offerings have included the Six Dollar Burger and Guacamole Bacon Six Dollar Burger. (Restaurant<br />
Business <strong>Menu</strong> Strategies Newsletter, 7/29/03)<br />
Carl’s Jr. launched a new BBQ Ranch Charbroiled Chicken Sandwich as a limited-time offer. It features a boneless breast of<br />
charbroiled chicken, BBQ Ranch sauce, American cheese, red onion, lettuce and tomato on a toasted sourdough bun. Its<br />
suggested price is $3.89 alone or $5.45 for a combo with fries and a drink. (Brandweek, 8/27/03, no page number)<br />
Carl’s Jr. debuted two new Six Dollar Burgers systemwide. Priced from $3.95 to $4.29, the 6.25-oz. burgers include Chili<br />
Cheese and Bacon Cheese options. (NRN Daily NewsFax 11/4/03)<br />
Carl’s Jr. extended its Six Dollar Burger line with two new options: Chili Cheese and Bacon Cheese. The line also includes<br />
Original, Western Bacon and Guacamole Bacon. Prices range from $3.95–$4.29 for the 6.25-oz. burgers. (NRN Daily<br />
NewsFax 11/4/03)<br />
Carl’s Jr. rolled out a lettuce-wrapped, low-carbohydrate burger. Priced at $3.95, the new Six Dollar Burger will be available<br />
December 31. (NRN Daily NewsFax 12/16/03)<br />
CKE Restaurants is rolling out low-carb burgers at its Hardee’s and Carl’s Jr. chains after successful testing. Hardee’s will<br />
serve a low-carb Thickburger priced at $2.89, while Carl’s Jr. will offer a low-carb version of its Six Dollar Burger. The<br />
sandwiches target consumers on low-carb diets and are wrapped in lettuce instead of a bun. Each has six grams of<br />
carbohydrates, 55 fewer than traditional versions. (Restaurant Business Daily News 12/16/03, NRN Daily NewsFax 12/16/03)<br />
Technology |<br />
American Express Co.'s ExpressPay is being tested by Carl's Jr., Dairy Queen, Quiznos Subs and Schlotzsky's Deli. Currently<br />
limited to the Phoenix area, the cashless transaction system charges a customer's American Express account from a keychain<br />
fob with RFID technology. Participating users have reported 30–40% quicker checkout times. (Nation's Restaurant News<br />
8/11/03 p70)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
112
Personnel |<br />
Andrew Puzder, President<br />
Theodore Abjarian, Chief Financial Officer<br />
Brad Haley, Vice President of Marketing<br />
Richard Fortman, Vice President of Operations<br />
John Koncki, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Carl’s Jr. launched a new prototype design in a unit in Downey, CA. The exterior features new lighting and landscaping and<br />
the interior includes a soaring roof. The chain plans to remodel the inside of up to 40 existing units and make the prototype an<br />
option for all new branches. Carl’s Jr. is a subsidiary of CKE Restaurants. (NDNF 2/19/03)<br />
Carl’s Jr. reported same-store sales increased 2.3% for the second quarter ended August 11. (Restaurantbiz.com 9/19/03)<br />
Carl’s Jr. for the four weeks ended October 6, reported same-store sales increased 7.5%. (NRN Daily NewsFax 10/16/03)<br />
Carl’s Jr. for the four weeks ended November 3, reported same-store sales increased 3.3%. (NRN Daily NewsFax 11/14/03)<br />
CKE Restaurants for the four weeks ended December 29, reported that same-store sales increases of 4.5% at Carl’s Jr., 7.3%<br />
at Hardee’s and 1.1% at La Salsa. (NRN Daily NewsFax 1/8/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
113
Carlson - Emerging Brands Div.<br />
Headquarters<br />
7540 LBJ Freeway, Dallas, Texas 75251 USA<br />
Tel: (972) 450 5400 Fax: (972) 450 5505<br />
www.crww.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 40,000 50,000 41,000<br />
Company-owned ($000) 40,000 50,000 41,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 14 21 15<br />
Company-owned 14 21 15<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - 3,600 2,733<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
114
Carlson Restaurants Worldwide<br />
Headquarters<br />
7540 LBJ Frwy, Dallas, Texas 75251 USA<br />
Tel: (972) 450 5400 Fax: (972) 450 5505<br />
www.crww.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Carlson - Emerging Brands Div.<br />
Pick Up Stix<br />
Samba Room<br />
T.G.I. Friday's<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,157,000 2,102,000 -<br />
Company-owned ($000) 1,072,000 1,055,000 -<br />
Franchised ($000) 1,085,000 1,047,000 -<br />
U.S. Number of Units 611 591 -<br />
Company-owned 329 314 -<br />
Franchised 282 277 -<br />
International Sales ($000) 420,000 406,500 -<br />
International Units 191 183 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Carlson Companies, Inc. is one of the largest privately held firms in the U.S. with holdings in the businesses of marketing,<br />
motivation, sales promotion, real estate and travel. It generates over $10 billion in revenues annually. Carlson Restaurants<br />
Worldwide has extensive international operations. The restaurant holdings span the casual-dining and quick-casual sectors<br />
and follow an aggressive co-branding strategy with its many chain and hotel brands.<br />
In 2001, the company acquired its first quick casual chain, Pick Up Stix. California-based, it specializes in wok’d fresh Chinese<br />
food. A separate division will operate the chain.<br />
Carlson began operations as a division of Carlson Companies in 1983. Founded in 1938 by Curtis L. Carlson with one idea—<br />
Gold Bond trading stamps—the Carlson Co. had experienced an annual compounded growth rate averaging 33% through<br />
1978. Current growth is at about 15% each year.<br />
Carlson acquired T.G.I. Friday’s in 1975. Those holdings went public in 1983 and functioned as the only publicly held<br />
subsidiary until Carlson purchased the remaining stock in February 1990. In 1997, Carlson sold its Country Kitchen<br />
International holdings after owning it some 20 years.<br />
Current management includes Richard Snead, president<br />
<strong>Menu</strong> Positioning |<br />
T.G.I. Friday’s offers a wide selection of varied menu favorites such as double-glazed ribs, all natural angus burgers and its<br />
famous Jack Daniel’s Grill entrees. Friday’s is also known for its innovative, one-of-a-kind menu items.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
115
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
M Crowd Restaurant Group, Dallas, bought two Taqueria Caonita restaurants from Carlson Restaurants Worldwide this year<br />
and converted one of the locations to its Mi Cocina Tex-Mex concept, a 14-unit chain that is its primary growth vehicle. It<br />
converted the other location to its three-unit Taco Diner concept. Mi Cocina’s average unit volume is $3.2 million and it has<br />
aggregate annual sales of about $44 million. M Crowd plans to open three more Mi Cocinas in 2004, including one in the new<br />
market of Austin, TX. All but one of its locations is in the Dallas-Ft. Worth market and one unit is in Kansas City, MO. M<br />
Crowd’s restaurant portfolio also includes four fine-dining venues. (Nation’s Restaurant News 7/21/03 p55<br />
Technology |<br />
Carlson Restaurants Worldwide Inc. hired Deborah Lipscomb as chief information officer. (Nation's Restaurant News 7/14/03<br />
p44)<br />
Personnel |<br />
Curtis Nelson, Chairman<br />
Richard Snead, President<br />
Stephen King, Chief Financial Officer<br />
Mike Archer, Chief Operating Officer<br />
Larry Taylor, Director of Purchasing<br />
News & Other |<br />
Pick Up Stix will grow by 25 units this year, with the Carlson Restaurants Worldwide-owned concept’s openings to be<br />
“predominantly” company-operated. The Pick Up Stix system currently consists of 83 stores, of which 75 are company-owned.<br />
Growth of the quick-casual Asian concept will be enhanced in part with increased franchising efforts. (NRN 5/26/03 p1)<br />
Johnson Development Corp. was slated to open its 50th Starbucks in Milwaukee in September and has more than 20<br />
additional branches of the coffee brand in development and expected to open over the next 15 months. Johnson Development<br />
Corp. is headed by Earvin “Magic” Johnson. Through its Urban Coffee Opportunities, the Johnson-Starbucks Corp.<br />
partnership, Johnson’s goal is to operate 125 inner-city Starbucks Coffee outlets. The partnership currently has outlets in 12<br />
states and the District of Columbia. Johnson launched its co-development pact with Starbucks in 1998. The company also has<br />
a partnership with Dallas-based Carlson Restaurants Worldwide to develop Magic Johnson’s T.G.I. Friday’s, with two already<br />
in operation in Los Angeles and Atlanta. (NRN 9/1/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
116
Carrabba's Italian Grill<br />
Headquarters<br />
2202 N. Westshore Blvd., Tampa, Florida 33607 USA<br />
Tel: (813) 282 1225 Fax: (813) 282 1209<br />
www.carrabbas.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 343,000 276,000 217,000<br />
Company-owned ($000) 253,000 204,000 169,000<br />
Franchised ($000) 90,000 72,000 48,000<br />
U.S. Number of Units 123 103 81<br />
Company-owned 94 75 60<br />
Franchised 29 28 21<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,075 3,100 2,816<br />
Concept Positioning |<br />
Carrabba’s Italian Grill is a wholly owned subsidiary of Outback Steakhouse, Inc. It is a dinner only concept that features a<br />
pasta bar and exhibition-style food preparation. Units average 6,340 sq.ft. with seating for some 246 and have a festive and<br />
entertaining atmosphere reminiscent of a traditional Italian kitchen in each seating area: the dining room, the bar and the pasta<br />
bar with exhibition cooking. The prototype includes a rooftop garden. Units are either endcaps in strip shopping centers or<br />
freestanding buildings.<br />
Dark woods, large booths and tables, Italian memorabilia featuring Carraba’s family photos, authentic Italian pottery and<br />
cooking utensils add to the ambiance.<br />
Outback began development of Carrabba’s in the mid-1990's through an agreement with its founders. In January 1995, that<br />
agreement was restructured, giving Outback sole ownership and development rights to the concept, outside of Texas. It also<br />
pays royalties of 1–1.5% on their units. The two original locations and development rights in Texas remain in control of its<br />
founders.<br />
<strong>Menu</strong> Positioning |<br />
Italian entrees such as chicken Marsala or 9-oz. filet with potatoes and vegetables as well as wide selection of pastas and<br />
Italian classics such as mussels, lasagna, eggplant Parmesan and veal Marsala. Also features wood-fired pizzas, soups,<br />
salads, antipasti and desserts including tiramisu. Full liquor service. <strong>Menu</strong> Prices: $5.99–$18.99. Check Averages: $20<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
117
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Italian cuisine has gained mainstream status on chain menus. Given its popularity, chains are working not only to develop<br />
more authentic offerings at Italian concepts but also to supplement menus in concepts not devoted to that cuisine with pastas<br />
and other dishes showcasing Italian ingredients or influences. Olive Garden is continually working to adapt authentic Italian<br />
favorites for American tastes. Its most recent dishes include two versions of ravioli. One is stuffed with shrimp and crab in a<br />
lobster-based sauce, while the other features ground beef, sausage and chicken. It is also expanding into Italian-influenced<br />
seafood dishes. Its Salmon Piccata is grilled salmon with white-wine-and-lemon sauce accompanied by roasted vegetables.<br />
Other innovations include: ■ Ricotta Cheesecake Italiano—ricotta and cream cheeses baked with a hint of lemon and served<br />
with raspberry coulis, Bertucci’s ■ Polla Rosa Maria—fire-roasted chicken breast stuffed with fontina cheese and prosciutto,<br />
topped with mushrooms and basil-lemon butter sauce, Carrabba’s Italian Grill ■ Italian Nachos—mozzarella cheese,<br />
pepperoni, Italian sausage, pepperoncini and pizza sauce on pasta chips, Old Chicago ■ Pappardelle Pasta—with shrimp,<br />
saffron, basil, chiles and arugula, Piatti ■ Twice Baked Lasagna with Meatballs—slowly baked then topped with provolone and<br />
finished in a woodburning oven, Romano’s Macaroni Grill. (Restaurants & Institutions, 8/1/03, p66)<br />
Carrabba’s Italian Grill rolled out two new appetizers this year after successful tests. Crab Cakes ($8.99) are made with jumbo<br />
lump crabmeat, seared in a cast-iron skillet and served over roasted red bell pepper sauce. Bruschette of the Day ($6.79) is<br />
grilled garlic toast served with a variety of toppings. (Chain Leader 11/03 p40)<br />
Personnel |<br />
Steven Shlemon, President<br />
William Kadow, Vice President of Operations<br />
Andi Jacobs, Vice President of Marketing<br />
Kathleen Packard, Director of Purchasing<br />
Steven Shlemon, President<br />
William Kadow, Vice President of Operations<br />
Andi Jacobs, Vice President of Marketing<br />
Kathleen Packard`, Director of Purchasing<br />
Steve Romaniello, Chief Executive Officer<br />
News & Other |<br />
Outback Steakhouse Inc. for the five-week period ended September 27, reported same-store sales increased 3.2% at its<br />
domestic namesake units. Carrabba’s Italian Grill announced same-store sales were flat during the same period. (NRN Daily<br />
NewsFax 10/3/03)<br />
Carraba’s Italian Grill for the third quarter ended September 30, reported same-store sales increased 0.8% at company-owned<br />
units and decreased 1.0% at franchised units. (Nation’s Restaurant News 11/3/03 p12)<br />
Carrabba’s Italian Grill for the four weeks ended October 25, reported comparable-store sales increased 2.4% at companyowned<br />
restaurants and decreased 2.5% at franchised units. (Nation’s Restaurant News 11/10/03 p45)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
118
Carrols Corp.<br />
Headquarters<br />
968 James St., Syracuse, New York 13203 USA<br />
Tel: (315) 424 0513 Fax: (315) 475 9616<br />
www.carrols.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Pollo Tropical<br />
Taco Cabana<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 686,600 694,289 -<br />
Company-owned ($000) 649,400 656,289 -<br />
Franchised ($000) 37,200 38,000 -<br />
U.S. Number of Units 560 563 -<br />
Company-owned 530 532 -<br />
Franchised 30 31 -<br />
International Sales ($000) 1,800 2,900 -<br />
International Units 4 5 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Carrols Corp. is one of the largest Burger King franchisees with agreements to operate in some 16 states. Development of its<br />
system dates back to the mid-1970s with conversion of its own restaurant brand to Burger King and through acquisitions in the<br />
1980s. Carrols also owns and operates Pollo Tropical, a quick-service chicken chain, Taco Cabana and Tropigrill.<br />
In 1990, it sold its two food distribution centers to B.K. Distributing. In mid-1998, the company completed the acquisition of<br />
Pollo Tropical, Inc. for some $90.2 million. In December 2000, it completed the Taco Cabana acquisition for $152 million and<br />
the assumption of some $42 million in debt.<br />
Current management includes Alan Vituli, chairman and chief executive officer; Daniel T. Accordino, president and chief<br />
operating officer and Paul R. Flanders, vice president finance.<br />
News & Other |<br />
Burger King franchisee Carrols Corp. said the chain is testing a line of salads expected to be launched nationwide after next<br />
year’s first quarter. Carrols’ 351 restaurants had a 6.4% decline in same-store sales for the third quarter (ended September<br />
30). Burger King would not comment on the scope of its salad test. It previously had said that more than 30 menu items are in<br />
test. Separately, Burger King launched an interactive nutrition guide on its Web site that allows customers to assess meals<br />
based on their dietary needs. The guide includes a calorie counter and a function offering menu suggestions based on a user’s<br />
search choice. (NRN 12/1/03 p4; NDNF 11/14/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
119
Carrows<br />
Headquarters<br />
3355 Michelson Drive Suite 350, Irvine, California 92656 USA<br />
Tel: (949) 251 5700 Fax: (949) 251 5205<br />
www.carrows.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 161,000 178,138 182,708<br />
Company-owned ($000) 132,000 150,269 153,899<br />
Franchised ($000) 29,000 27,869 28,809<br />
U.S. Number of Units 132 142 141<br />
Company-owned 102 112 114<br />
Franchised 30 30 27<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,225 1,251 1,349<br />
Concept Positioning |<br />
FRD Acquisition, a former subsidiary of Advantica Restaurant Group, took control of the Carrow’s and Coco’s brands in July<br />
2002 after Advantica divested the two concepts and changed its name to Denny’s Corporation. Soon afterwards, Catalina<br />
Restaurant Group Inc. bought the Carrow’s and CoCo’s chains from FRD Acquisition. Carrows is a full-service, regional family<br />
restaurant chain specializing in traditional American meals and a variety of specialty items. The chain had systemwide sales in<br />
2001 of $183 million. Units are located throughout the Southwest and West.<br />
David Nancarrow opened the first Carrows Restaurant in Santa Clara, CA in 1970. A second location opened in Goleta, CA,<br />
shortly after that. Today, more than 80% of the sites are company operated. There are three types of Carrows units in<br />
operation, a standard version, one with a cafe bakery and those with full liquor service. Largely freestanding, Carrows average<br />
4,900 sq. ft. and seat 140–150 patrons. Interiors feature natural woods, soft tones of rust, green, beige, and sand as well as<br />
patterned upholstery. In late 1998, the chain began a franchise upgrade program that includes interior painting, wall covering,<br />
carpeting, new exterior signage, paint and awnings.<br />
Jeff Campbell is chairman, chief executive officer and president.<br />
<strong>Menu</strong> Positioning |<br />
Current, but not trendy, the menu features signature recipes reminiscent of Santa Barbara such as its Southwest Crispy Rolls,<br />
Beef Stew in a Bread Bowl, Southwest Chicken Salad, Mile High Sandwiches and Shrimp Scampi Pasta. Hearty breakfasts<br />
include Grandma's Cinnamon Loaf French Toast and the Mega Skillet, and lunches and dinners offers generous portions of<br />
comfort foods. Check Averages: $7. <strong>Menu</strong> Prices: $4.69–$9.99<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
120
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Comfort foods are being updated with more unique ingredients as midscale operators work to update their menus and make<br />
them more appealing. While traditional foods are still the norm, there has been increasing movement toward upgraded and<br />
fresher ingredients, bold flavor and even ethnic influences. Examples include: ■ Caribbean Chicken Salad—teriyaki-glazed<br />
chicken breast, red peppers, Mandarin oranges, red and green onions, shredded carrot and tortilla straws served over spinach<br />
with Mandarin-orange dressing, Perkins ■ Slow-Roasted Turkey Focaccia—turkey breast, Swiss cheese, lettuce, tomatoes,<br />
cucumbers and creamy Caesar dressing, Bakers Square ■ Mango-Habanero Grilled Chicken Breasts—two chicken breasts<br />
with tangy mango-chile sauce and fresh pineapple, King’s Family Restaurants ■ Slim Jim—ham, Swiss cheese, lettuce,<br />
tomatoes and special sauce on grilled Grecian bread, Big Boy ■ California Omelet—eggs, Cheddar cheese, tomatoes, olives<br />
and crumbled bacon topped with sour cream and avocado wedges, Carrows. (Restaurants & Institutions, 8/1/03, p13)<br />
Personnel |<br />
Herschel Hendrickson, Vice President of Operations<br />
Heather Gardea, Chef<br />
David Devoy, Chairman<br />
Murray Wachtenheim, Chief Financial Officer<br />
Susan Alexis, Vice President of Operations<br />
Tony Barr, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
121
Carvel Ice Cream Bakery<br />
Headquarters<br />
175 Capital Blvd. Suite 400, Rocky Hill, Connecticut 06067 USA<br />
Tel: (860) 257 4448 Fax: (860) 257 8859<br />
www.carvel.com<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 120,000 100,350 106,443<br />
Company-owned ($000) - 350 333<br />
Franchised ($000) 120,000 100,000 106,110<br />
U.S. Number of Units 402 392 395<br />
Company-owned - 2 2<br />
Franchised 402 390 393<br />
International Sales ($000) 1,000 7,500 7,700<br />
International Units 3 30 32<br />
Average Sales/Unit ($000) 300 265 166<br />
Concept Positioning |<br />
Carvel is engaged in the business of franchising, constructing, and supervising retail ice cream stores. Stores carry the name<br />
Carvel Ice Cream. Independent vendors provide franchisees with proprietary mixed ice cream, from which Carvel’s brand is<br />
made at each store. Equipment is sold from third party vendors.<br />
Carvel units are festive and friendly. Traditional exteriors feature a rosy red awning with dark purple and bright yellow accents,<br />
while interiors have the same color scheme and feature bakery-type vertical cake display units. Most stores have counter<br />
service only. In addition, franchisees are being offered mini-stores; kiosks and portable vending cart units for expansion within<br />
heavy traffic trade areas. Equally important is its aggressive franchise development program, which focuses on development<br />
of multi-unit agreements and expansion into new markets.<br />
Carvel also markets its ice cream cakes in bakery sections of approximately 6,000 supermarkets. The products are produced<br />
and delivered by franchisees as well as company-owned and operated production plants. Revenues generated are shared by<br />
the franchisee (50% of sales), the supermarket (40%) and Carvel (10%).<br />
In addition, Carvel has a number of concession contracts. These include Meadowlands Sports Complex in New Jersey; Shea<br />
Stadium, New York; Yankee Stadium, New York; Tropicana Field, Tampa; Universal Studios, Orlando; and various airports<br />
and toll roads. In 1934, Thomas Carvel opened a roadside ice cream stand in Hartsdale, NY. Five years later he constructed<br />
and patented the first machine that produced a frozen confection (later known as frozen custard). In 1941, he began<br />
franchising Carvel units. Investcorp Inc., an international banking concern, has owned the company since 1989.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: soft ice cream and ice cream cakes. Also menus variety of novelties, bulk packages and take home<br />
itemsClassics line of ice cream cakes, augments special occasion & character cakes. Also offers an ice cream cannoli, all ice<br />
cream brownie & truffle as well as soft drinks, sherbets, shakes & ice cream sodas<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
122
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Carvel Corp. plans to open 70 new units in 2003 and an additional 125 in 2004. The targeted growth area is on the Eastern<br />
corridor, but the chain will also open outlets in Ohio, Illinois, Dallas, Atlanta, Las Vegas and Phoenix. (Nation’s Restaurant<br />
News 11/17/03 p8)<br />
Promotion Plans |<br />
Carvel Corp. plans to launch a new TV campaign featuring the tag, “It’s what happy tastes like. Carvel,” in 2004. The<br />
campaign focuses on “Carvel moments,” based on consumers’ first experiences with Carvel. (Brandweek 11/3/03 p14)<br />
<strong>Menu</strong> Development |<br />
Carvel introduced a 98% fat-free ice cream sandwich. Its Flying Saucer features fat-free vanilla ice cream sandwiched<br />
between two low-fat chocolate wafers. It is being offered in Carvel’s 400 franchised restaurants as well as in supermarkets.<br />
The chain said the product is in response to consumer demand for low-fat novelty treats. (PR Newswire)<br />
Carvel Ice Cream launched 21 new fountain offerings as part of an overall effort to refresh stores with new interiors and<br />
expanded menus. Among the items introduced were: specialty cakes in flavors such as chocolate covered banana, peanut<br />
butter cup, dulce de leche and mudslide; specialty sundaes in flavors such as strawberry shortcake, fudgie brownie, caramel<br />
apple and turtle; “Creamaccinos” in classic, mocha fudge and caramel cream flavors; two new sizes for cones and cups; and a<br />
kids menu with new shake and sundae flavors. (PR Newswire)<br />
Franchise Activity |<br />
Carvel Corp. will franchise 30–40 ice cream shops in eastern Pennsylvania and New Jersey within the next three to five years.<br />
Those two areas currently have more than 50 Carvel outlets. In addition, the company plans to franchise stores in Tampa and<br />
St. Petersburg, FL. (NDNF 4/3/02)<br />
International Activities |<br />
Carvel Corp. signed its first international master license deal. It awarded rights for Puerto Rico to V&R Corp., which owns nine<br />
of the 15 Carvel shops in Puerto Rico. Jose Velez Diaz, the licensee, wishes to develop more than 50 units over the next five<br />
to seven years. (NRN 11/17/03 p60)<br />
Personnel |<br />
Neal Aronson, Chairman<br />
Joseph Aielli, Chief Financial Officer<br />
Craig Hall, Vice President of Marketing<br />
Robert Masterson, Product Development<br />
Carvel Corp. promoted Joseph F. Miles to vice president of stadiums and arena. Richard S. Key was named director of<br />
operation services, and James L. Salerno was promoted to director of field operations. (Franchise Times Nov./Dec. 2003 p53)<br />
News & Other |<br />
Carvel said it signed a deal that calls for the addition of a Carvel soft-serve ice cream station to a Souper Salad in Braintree,<br />
MA. The store was scheduled to open in March. This is the second co-branded unit. Atlanta-based Carvel operates more than<br />
400 dipping shops and Souper Salad, based in Needham, MA, has 10 units in the Boston area. (NRN 3/3/03 p96)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
123
<strong>RISE</strong> COMPANY PROFILE<br />
Carvel plans to open up to 80 franchises in the Chicago area. Already recruiting franchisees, it expects to sign five to 10<br />
before year’s end and have five units open by next spring. Other cities targeted for expansion are Atlanta and Boston. (FIR<br />
8/18/03 p6)<br />
Carvel Corp. expects a November debut of its new prototype in Vero Beach, FL. Designed by WD Partners, the restaurant<br />
features an old-fashioned marquee for customized birthday messages, an exhibition cake-making machine, interactive<br />
children’s toys and old-fashioned ice-cream parlor furniture, as well as a 9-ft. “sprinkle tower.” (NDNF 10/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
124
Champps Entertainment, Inc.<br />
Headquarters<br />
10375 Park Meadows Dr. Suite 560, Littleton, Colorado 80124 USA<br />
Tel: (303) 804 1333 Fax: (303) 804 8477<br />
www.champps.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 215,025 186,912 175,382<br />
Company-owned ($000) 170,528 140,935 122,235<br />
Franchised ($000) 44,497 45,977 53,147<br />
U.S. Number of Units 50 45 38<br />
Company-owned 38 32 25<br />
Franchised 12 13 13<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,973 5,225 4,889<br />
Concept Positioning |<br />
Champps Americana is a chain of casual dining restaurants with themed sports bars. Units are open seven days a week from<br />
11 a.m.–1 a.m., serving lunch, dinner and Sunday brunch. The freestanding units are large, averaging 7,000–12,000 sq.ft. with<br />
seating for 250–270 on multiple levels. Kitchens are open for customer viewing. Large screen televisions allow for watching of<br />
sporting events and disc jockeys select music for listening. Arcade games are also available in a separate game room.<br />
In addition, its specialty promotions, whether seasonal or sports related, are considered a primary marketing tool for<br />
generating sales. The promotions range from family bingo and big bike giveaways to Halloween, Easter and Christmas. A<br />
Champps line of t-shirts, caps, etc. is merchandised in its sports shop.<br />
Founded in 1980 by Dean Vlahos, Champps Entertainment completed is initial public offering in mid-1994. In October 1995,<br />
Daka International Inc. announced the acquisition of Champps Entertainment in a $69 million stock swap. The merger was<br />
completed in February 1996. In mid-1997, its parent name was changed from Daka International Inc. to Unique Casual<br />
Restaurants as part of a planned spin-off by Daka when its noncommercial holdings were acquired by Compass Group PLC.<br />
In mid-1999, the corporate name was changed to Champps Entertainment Inc. to better reflect is flagship brand.<br />
<strong>Menu</strong> Positioning |<br />
Diverse menu of more than 120 items including burgers & innovative sandwiches, pastas, salads, soups, ribs, pizza, seafood<br />
& chicken. Also wide selection of appetizers. Offers daily specials as well as separate specialty appetizers & brunch menus.<br />
Signature desserts: Messy Sundae. Full liquor service, accounting for some 30% of sales. <strong>Menu</strong> Prices: $4.95–$18.95. Check<br />
Averages: $13<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
125
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Champps reported that it will cut portion sizes on some of its proteins. For the last few years the chain had been promoting<br />
large portions, but it noticed that people were eating less food and lighter entrees. (Restaurant Business <strong>Menu</strong> Strategies<br />
Newsletter, 8/27/03)<br />
Bread is an important appetizer ingredient at Champps. The restaurant stocks several different sandwich loaves, including<br />
French bread, country-style Vienna bread and pumpernickel rye, which are also used for appetizers. Its Crab Bread is<br />
prepared by layering French bread with a spicy crab salad and a blend of cheeses. The bread is baked and served with a side<br />
of marinara sauce. (Restaurants & Institutions <strong>Menu</strong> Solutions 10/03 p5)<br />
Personnel |<br />
William Baumhauer, Chairman<br />
Frederick Dreibholz, Chief Financial Officer<br />
Don Lamb, Chief Operating Officer<br />
Larry Ryback, Vice President of Operations<br />
Sue Beranek, Director of Marketing<br />
Champps Entertainment promoted Marla Yetka to the newly created post of vice president of marketing. Previously, Yetka was<br />
director of marketing for Champps. (Nation’s Restaurant News 9/15/03 p62)<br />
Champps appointed Sue Beranek vice president of marketing. Previously, Beranek was vice president of marketing at Taco<br />
John’s. (Restaurant Business Daily News 1/6/04)<br />
Champps hired Sue Beranek as vice president of marketing. Most recently, Beranek was vice president of marketing for Taco<br />
John’s. (NRN Daily NewsFax 1/7/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
126
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Fox Sports Grill will open a second unit in June 2003 in Irvine, CA. The concept, which debuted in November 2002 in<br />
Scottsdale, AZ, was developed by Bill Freeman in partnerships with financier Bill Dallas in their Westlake, CA-based B&B<br />
Restaurant Ventures. Freeman said that based on the initial unit’s first six months of operation, that site should do more than<br />
$8 million in sales in its first year. Freeman is a former executive of both ESPN Zone and Champps Americana and a former<br />
Fuddruckers franchisee. The second Fox Sports Grill will be located in a vacated, two-level, 27,000-sq.ft. space at the Irvine<br />
Spectrum entertainment mall. Occupying 50% more space than the Arizona location, it will include a bowling alley as well as<br />
billiards and other games. Both units’ dining rooms will be television-free to appeal to casual-dining fans. Fox Sports also<br />
licenses its name to seven Fox Sports Skybox locations. (NRN 5/19/03 p181)<br />
Champps Entertainment Inc. for the first quarter ended September 28, reported revenues increased 18% to $48.9 million<br />
compared to the same quarter a year ago. Same-store sales increased 0.2%. (NRN Daily NewsFax 10/30/03)<br />
Champps Entertainment Inc. for the first quarter ended September 28, reported revenues increased 18% to $48.9 million<br />
compared to the same quarter last year. Same-store sales increased 0.2%. (Nation’s Restaurant News 11/10/03 p44)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
127
Charlie Brown's Steakhouses<br />
Headquarters<br />
1450 Route 22 W., Mountainside, New Jersey 07092 USA<br />
Tel: (908) 518 1800 Fax: (908) 518 1509<br />
www.charliebrowns.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 90,000 88,859 81,358<br />
Company-owned ($000) 90,000 88,859 81,358<br />
Franchised ($000) - - -<br />
U.S. Number of Units 38 37 35<br />
Company-owned 38 37 35<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,400 2,529 2,324<br />
Concept Positioning |<br />
Charlie Brown's Steakhouse and The OFFICE Beer Bar & Grill are full-service, dinnerhouse chains. Units of both concepts are<br />
located in largely suburban, densely populated, affluent neighborhoods.<br />
Charlie Brown's are full-service freestanding restaurants, usually converted from old restaurants. Open for lunch and dinner,<br />
they average 6,000–6,500 sq.ft. with 150 dining area and 40 cocktail lounge seats. The decor varies, but common elements<br />
are wood-paneled interiors, working fireplaces and antiques and other objects representing a broad spectrum of popular 20th<br />
century American culture.<br />
The OFFICE Beer Bar & Grill units are designed to be friendly, neighborhood gathering places and positioned as "anything but<br />
work." Most units have a large oval bar and surrounding separate dining area that seats 100–175 patrons. The chain is also<br />
known as "New Jersey's Favorite Beer Bar" with over 50 domestic, imported and micro brands available.<br />
In 1974, Restaurant Associates Industries purchased a chain of New Jersey steakhouses that included three different<br />
concepts. Late in 1986, it acquired the OFFICE chain.<br />
In early 1990, 85% of Restaurant Associates was acquired by Kyotaru Co. Ltd., Tokyo, and then in fall 1996, management of<br />
Restaurant Associates reacquired the company. In June 1997, the chain was acquired from Restaurant Associates Corp. by<br />
Castle Harlan Partners III.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong> Prices: $8.50–$17; Express lunch priced at $4.95 & includes entree, 2 sides. Check Averages: $8.25–$11. The OFFICE:<br />
Casual American cuisine featuring such entrees as Bass Ale battered shrimp, Thai chicken salad, sizzling fajitas & burgers,<br />
<strong>Menu</strong> Prices: $4.99–$13<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
128
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Charlie Brown’s Steakhouse recently supplemented its menu with several entrees emphasizing bold ingredients for greater<br />
flavor. Its Lemongrass Salmon is an 8-oz. portion seasoned with sesame-lemongrass breadcrumbs, baked and served over<br />
Asian slaw with ginger butter. Prime rib is now served with wild mushrooms that are sautéed with garlic and wine, and a new<br />
Baja Steak is a 12-oz. center-cut sirloin marinated in onion-herb vinaigrette and served with crispy blue-and-red corn tortilla<br />
strips. (Restaurants & Institutions, 7/1/03, p26)<br />
Personnel |<br />
Russell D'Anton, Chief Executive Officer<br />
Jerry Bruinooge, Chief Financial Officer<br />
Laurie Piro, Director of Marketing<br />
Bruce Peer, Vice President of Finance<br />
John Augustine, Senior Vice President of Operations<br />
Michael Mulligan, Vice President of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
129
Chart House<br />
Headquarters<br />
1510 West Loop South, Houston, Texas 77027 USA<br />
Tel: (713) 850 1010 Fax: (713) 850 7274<br />
www.chart-house.com<br />
Ownership: Public<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 112,000 125,000 141,697<br />
Company-owned ($000) 112,000 125,000 141,697<br />
Franchised ($000) - - -<br />
U.S. Number of Units 34 40 41<br />
Company-owned 34 40 41<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,200 3,353 3,456<br />
Concept Positioning |<br />
Largely open for dinner only, a few also serve lunch and/or brunch. Chart House units capitalize on the attractiveness of a<br />
unique natural site or historic building. Generally located near lake shores, sea coasts or mountains and within major<br />
metropolitan areas, exteriors of its restaurants range from a restored 1887 Victorian boathouse on Coronado Island in San<br />
Diego Bay to a modern three-tiered glass restaurant in Philadelphia overlooking the Delaware River. Units range from 4,600–<br />
32,000 sq.ft. (with an average of 8,950) and seating 176–890 (average is 287) persons.<br />
The chain began an extensive remodeling program in 1998. At the close of 2000, some 80% of the system had been given a<br />
new, more contemporary decor.<br />
The company’s Peohe’s concept is located in Coronado, CA. It is an upscale restaurant that is used extensively for menu and<br />
operations testing as its price points and service levels are higher than those associated with its flagship brand. The unit has a<br />
full-service sushi bar.<br />
The first Chart House restaurant opened in Aspen, CO, in 1961. In April 1987, the company acquired Paradise Bakery and<br />
sold it in late 1995. In 1992, it created a license agreement for the Islands hamburger chain to develop them nationwide and in<br />
early 1996, sold its majority rights to concentrate solely on the Chart House brand. In mid-1997, financier Sam Zell’s Equip<br />
Group Investments, Inc. acquired some 29% of the outstanding shares of Chart House stock. In August 2002, Landry’s<br />
Restaurants acquired the Chart House chain.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
130
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: fresh fish & seafood including Coconut Crunchy Shrimp, Sesame Crusted Salmon, Pan Seared Sea Scallops,<br />
Spiced Ahi Tuna, Australian Lobster Tail & Alaskan King Crab Legs. Also menus steaks, prime rib, chicken & pasta entrees as<br />
well as an elaborate salad bar. Some units have a seafood bar, which offers various appetizers. Full liquor service available;<br />
also features vintage wines. <strong>Menu</strong> Prices: $14.95–$31.95. Check Averages: $36. Angelo and Maxie’s: Oversized steaks,<br />
salads, fish & chicken as well as extensive selection of appetizers. Full liquor service. Check Averages: $40<br />
Expansion Plans |<br />
Angelo and Maxie’s Inc. is being liquidated. Its board of directors approved the sale of three of its five steakhouses to an<br />
unnamed operator who will convert them to another concept. The stores are in New York City; Reston, VA; and Washington,<br />
DC. The company took on the Angelo and Maxie’s name after selling its Chart House chain to Landry’s Restaurants. It plans<br />
to sell its remaining two steakhouses, including its flagship in New York City. (Nation’s Restaurant News)<br />
Personnel |<br />
Tilman Fertitta, Chairman<br />
Paul West, Chief Financial Officer<br />
Richard Ervin, Senior Vice President of Operations<br />
Joe Leahy, Director of Purchasing<br />
Toni Niece, Director of Marketing<br />
Kathy Ruiz, Chef<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
131
Checkers Drive-In Restaurants<br />
Headquarters<br />
4300 W. Cyprus Suite 600, Tampa, Florida 33607 USA<br />
Tel: (813) 283 7000 Fax: (813) 283 7001<br />
www.checkers.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 290,000 300,000 308,529<br />
Company-owned ($000) 100,000 90,000 87,869<br />
Franchised ($000) 190,000 210,000 220,660<br />
U.S. Number of Units 397 414 428<br />
Company-owned 142 135 128<br />
Franchised 255 279 300<br />
International Sales ($000) - 300 -<br />
International Units - 1 -<br />
Average Sales/Unit ($000) 674 675 686<br />
Concept Positioning |<br />
Checkers Drive-In Restaurants operates and franchises hamburger restaurants. Most are double drive-throughs and permit<br />
two cars, on opposite sides of a single building, to be served at the same time with speed of service its unique factor. Each<br />
building, called a hamburger plant by Checkers, is a small (14 ft. x 54 ft.) modular building that can be moved, if the need<br />
arises. Units average 760–980 sq. ft. and offer both drive-through and walk-up service. Virtually all of them are modular units<br />
and are built at a Checkers-owned fabrication plant. Installation takes as little as nine days.<br />
Burgers are made-to-order and the chain's objective is to serve each customer within 30 seconds of arrival at a drive-through<br />
window. Units are generally open 12–15 hours per day, seven days a week.<br />
All units are designed around a 1950's diner and art deco theme. Black and white tile, in a checkerboard design, glass block<br />
and a protective drive-through cover supported by red columns. Most units also have an adjacent picnic table area with<br />
canopy tables and benches. A few have added inside seating.<br />
Checkers was founded in 1986 by Jim Mattei, a former Wendy's franchisee and an Alabama real estate developer, and Mark<br />
Reed, a lawyer and long-time Mattei partner. In late 1991, Checkers issued its first public stock offering. In September 1993, it<br />
acquired K.C. Zipps, Inc. of Kansas City, MO, and converted all of the units to Checkers. In August 1999, Checkers and<br />
Rally’s, Inc. merged into a single company.<br />
Daniel Dorsch, president and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Offerings include quarter-pound “Champ Burger,” cheeseburgers & bacon cheeseburgers, 2 different all beef hot dogs, all<br />
white meat chicken & fish sandwiches, salads, specially seasoned fries, milkshakes & soft drinks. Introduced Sirloin Steak<br />
Burger for $1.49. <strong>Menu</strong> Prices: 99¢–$1.99. Check Averages: $4<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
132
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chicken dishes have gained even more exposure on menus as operators work to offer healthier or perceived as healthier<br />
options for consumers. The protein has long been popular for its versatility and applications for multiple dayparts. Ingredients<br />
and preparation techniques can also create nearly limitless flavor combinations. Cracker Barrel recently tested Broccoli<br />
Cheddar Chicken. Priced at $7.99, the dish features boneless chicken breast and broccoli florets in cheese sauce served with<br />
vegetables and biscuits or cornbread. Consumer response was impressive, and sales for the dish rivaled its signature turkey<br />
and dressing. Dairy Queen has relied on chicken to expand its non-burger options, increasing its chicken options by 40%. Its<br />
latest innovation is a Wild Buffalo Chicken Strip Basket. Other chain efforts include: ■ Screamin’ Chicken Buffalo Blue Cheese<br />
Sandwich—served on a hoagie bun, Checkers Drive-In Restaurants ■ Killer Cajun Omelet—with spicy diced chicken breast,<br />
mushrooms, Jack cheese, onions and Santa Fe sauce, First Watch ■ Camarones Escondido—grilled chicken breast stuffed<br />
with sautéed shrimp and topped with spinach, cheese and chipotle wine sauce, El Chico. (Restaurants & Institutions, 8/1/03,<br />
p39)<br />
Franchise Activity |<br />
Checkers Restaurants reduced its franchise and royalty fee in half to increase new store development. The franchise fee<br />
dropped from $30,000 to $15,000, and royalty fees fell from 4% to 2%. (Restaurantbiz.com 9/11/03)<br />
Checkers Drive-In sold 22 company owned restaurants to new franchisee Pacific Restaurant Management Inc. Terms of the<br />
deal were not disclosed. (NRN Daily NewsFax 12/24/03)<br />
Personnel |<br />
Checkers Drive-In hired John Prpich as U.S. director of learning and performance. The chain also named Ted Fumia director<br />
of franchise development and Milton Harper construction manager. (NRN Daily NewsFax 12/11/03)<br />
Checkers Drive-In hired Pat Plumley as senior vice president, chief financial officer and treasurer. Previously, Plumley was<br />
senior vice president and chief financial officer for Fresh Brands Inc. (NRN Daily NewsFax 12/23/03)<br />
Checkers Drive-In named Pat Plumley chief financial officer. Previously, Plumley was chief financial officer at Fresh Brands.<br />
(Restaurant Business Daily News 12/23/03)<br />
News & Other |<br />
Checkers Drive-In Restaurants Inc. for the third quarter ended September 8, reported same-store sales increased 3.2% at<br />
company-owned units and 0.7% at franchised units. Net income decreased 6.6%. (NRN Daily NewsFax 10/20/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
133
Cheddar's Casual Cafe<br />
Headquarters<br />
616 Six Flags Drive Suite 116, Arlington, Texas 76011 USA<br />
Tel: (817) 640 4344 Fax: (817) 633 4452<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 84,000 73,000 -<br />
Company-owned ($000) 41,000 36,000 -<br />
Franchised ($000) 43,000 37,000 -<br />
U.S. Number of Units 41 32 -<br />
Company-owned 19 15 -<br />
Franchised 22 17 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,300 2,300 -<br />
Concept Positioning |<br />
Cheddar's Casual Café is a full-service, casual-dining chain that firmly believes, and proves, the "build-it-and-they-will-come"<br />
approach. The chain prides itself on its abiltity to obtain success through word-of-mouth publicity. It is a testament to the highquality<br />
fare served at Cheddar's.<br />
Units are typically 7,800 sq. ft. and seat approximately 250. The décor is contemporary and unassuming. Restaurants are<br />
open for lunch and dinner. Cheddar's is most known for its large portions and quality food. Over 80 items are prepped in the<br />
streamline kitchen, keeping the average tab below $10.<br />
Cheddar's, Inc., was founded in 1978 in Arlington, TX by college friends Aubrey Good, current chairman and chief executive<br />
officer, and Doug Rogers, president and chief operating officer. The company has expanded every year of its existence and<br />
has never had to shutter a restaurant.<br />
<strong>Menu</strong> Positioning |<br />
Varied menu. Entrées include ribs, steaks, sandwiches and Spasagna. Appetizers include salads, soups, featuring baked<br />
potato soup and chicken tortilla soup. Full liquor service available, accounting for approximatley 10% of revenues. <strong>Menu</strong><br />
Prices: $4.99–$12.99. Check Average: $9.80.<br />
Personnel |<br />
Rick Payne, Chief Financial Officer<br />
Aubrey Good, Chairman<br />
Doug Rogers, President<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
134
Cheesecake Factory, The<br />
Headquarters<br />
26950 Agoura Rd., Calabasas Hills, California 91301 USA<br />
Tel: (818) 871 3000 Fax: (818) 871 3100<br />
www.thecheesecakefactory.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 603,295 499,519 406,947<br />
Company-owned ($000) 603,295 499,519 406,947<br />
Franchised ($000) - - -<br />
U.S. Number of Units 59 50 41<br />
Company-owned 59 50 41<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 11,000 10,900 9,925<br />
Concept Positioning |<br />
The Cheesecake Factory is a chain of casual-dining restaurants open seven days a week for lunch, dinner, late night dining<br />
and Sunday brunch. Each unit varies in decor but has large airy eating areas and contemporary open kitchens. Ranging from<br />
5,400 to 17,300 sq. ft., the average size is around 11,000 sq. ft. with seating for more than 300 patrons. Approximately 65% of<br />
the restaurants also have extensive outdoor seating areas. All are located in large metropolitan areas with dense populations<br />
and above average income levels.<br />
Its unique appeal is based on a 19-page menu that features over 200 items most of which are reflective of current consumer<br />
tastes. Substantially all menu items are prepared on-site using fresh ingredients. The company evaluates menu appeal every<br />
six months, replacing 10–20 items. New items are tested and selected based on uniqueness, sales popularity, ease of<br />
preparation and profitability.<br />
In addition to its already broad and complex menu, each unit offers its signature cheesecakes and baked desserts for retail<br />
sales through display cases located near the front of each restaurant and accounts for some 15% of sales. These items have<br />
been prepared from proprietary recipes at the company's bakery facility and then shipped to individual locations. The bakery<br />
also produces goods for wholesale distribution to grocery and retail stores as well as other foodservice outlets.<br />
The company is also developing a Bakery Cafe version of its concept. Its three Bakery Cafes average 250–2,500 sq. ft. and<br />
feature its signature desserts and a limited salad and sandwich menu. The nontraditional units are operated through a<br />
franchise agreement with Host Marriott. In addition, the company operates Grand Lux Cafe, an upscale dining concept in the<br />
Venetian Resort in Las Vegas. It is open seven days a week, 24 hours a day. Outlets are located in Beverly Center in Los<br />
Angeles and Chicago, also. These units are open for lunch and dinner service only.<br />
The Cheesecake Factory was founded in 1972 by Oscar and Evelyn Overton and their son, David, now chairman, president<br />
and chief executive officer, as a producer of cheesecakes. The first restaurant was opened in 1978 in Beverly Hills, CA. It was<br />
incorporated in February 1992 and made its first public offering later that same year.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
135
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: 40 varieties of cheesecake with most popular varieties being white chocolate, raspberry truffle, fresh<br />
strawberry, Dutch apple caramel streusel, chocolate peanut butter cookie dough, Kahlua almond fudge & chocolate<br />
mousseAlso menus other desserts including reduced fat & calorie versions. Features more than 200 menu items ranging from<br />
specialty pizzas such as white pizza or Thai chicken & entree salads including Beverly Hills Pizza, Chinese chicken or herbcrusted<br />
salmon to classic burgers, shepherd's pie or meatloaf, shrimp scampi, Cajun Jambalaya Pasta, Caribbean Steak &<br />
Orange Chicken. Specialties also include chicken, beef, steaks, seafood & pasta entrees. Sunday brunch menu includes<br />
variety of egg-based entrees. Full liquor service available. <strong>Menu</strong> Prices: $3–$23.95. Check Averages: $15.70<br />
Expansion Plans |<br />
Grand Lux Café will be expanded by The Cheesecake Factory with a fourth unit to open in 2004. The location has not been<br />
announced. The Grand Lux concept, currently located in Las Vegas, Las Angeles and Chicago, features a lavishly decorated<br />
restaurant with large site requirements and more complicated cooking procedures than The Cheesecake Factory’s core brand.<br />
It also offers made-to-order desserts and a small selection of cheesecakes. Checks average $1 or $2 more than The<br />
Cheesecake Factory’s $15 average. For the extra money, Grand Lux uses Angus beef rather than Choice and larger shrimp.<br />
Grand Lux Cafes, patterned after grand old European cafes, are decorated with custom light fixtures, ornate Old-World<br />
ceilings, exhibition kitchens and large lounges. Its menu features about 110 items compared to The Cheesecake Factory’s<br />
200, although the selection is equally diverse. Appetizers include a Stacked Chicken Quesadilla ($8.95) and B.B.Q. Duck<br />
Potstickers ($7.95). (Nation’s Restaurant News)<br />
Cheesecake Factory opened a 15,000 sq. ft. outlet in the Royal Hawaiian Shopping Center. Seating 550, it is the chain’s<br />
largest restaurant to date. (NRN Daily NewsFax 12/11/03)<br />
<strong>Menu</strong> Development |<br />
Asian noodle bowls are appearing on a wide range of menus. The bowls feature several different components in one dish,<br />
combining protein, sauce, starch and vegetables. As an added bonus, preparation tends to be relatively fast and easy. As an<br />
ever-exp anding number of chefs experiment with bowls, traditional Asian operators such as Hibachi-San are looking to make<br />
their own bowl offerings more interesting by focusing on authentic Asian flavors. The chain’s most popular dish is<br />
chicken/teriyaki bowls served with steamed broccoli, cabbage, carrots, zucchini and fresh-grilled chicken, all coated in teriyaki<br />
sauce. Other offerings range from shrimp tempura to Hawaiian chicken and vegetarian. The chain is currently looking to<br />
develop more traditional Asian-flavored bowls such as sukiyaki to enhance its authentic image; it is also developing dishes<br />
with a Japanese curry sauce that is a bit milder than Indian curry. Even concepts not specifically devoted to Asian cuisine are<br />
experimenting with bowls. Legal Sea Foods recently supplemented its seafood-focused menu with a Soba Noodle Vegetable<br />
Broth. The blend of whole vegetables, vegetable broth, soba noodles, ginger, spices and fresh herbs is receiving an<br />
enthusiastic response from more adventurous diners. Other examples of non-Asian chains launching Asian-inspired bowls<br />
include: ■ Pacific Noodle Bowl—shrimp, scallops and skinny noodles tossed with whole-roasted garlic and fresh watercress in<br />
a light lemon-butter sauce, Bennigan’s ■ Rice Noodles Tossed in Tamarind Sauce—with green onions, garlic, chilies, tofu, egg<br />
and crushed peanuts; garnished with shrimp or chicken, The Cheesecake Factory ■ Hula Bowl—greens with chargrilled<br />
chicken breast, pineapple, Mandarin oranges, rice noodles, carrots and tomatoes, Max & Erma’s ■ Bangkok Chicken Bowl—<br />
seasoned chicken tossed with quick-seared fresh vegetables and udon noodles in garlic-soy-ginger sauce, Rock Bottom<br />
Brewery. (Chef)<br />
Personnel |<br />
David Overton, Chairman<br />
Gerald Deitchle, President<br />
Howard Gordon, Vice President of Marketing<br />
Michael Dixon, Chief Financial Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
136
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Grand Lux Café will be expanded by The Cheesecake Factory with a fourth unit to open in 2004. The location has not been<br />
announced. The Grand Lux concept, currently located in Las Vegas, Las Angeles and Chicago, features a lavishly decorated<br />
restaurant with large site requirements and more complicated cooking procedures than The Cheesecake Factory’s core brand<br />
as well as made-to-order desserts and a small selection of cheesecakes. Checks average $1 or $2 more than at The<br />
Cheesecake Factory due to usage of more premium ingredients such as Angus beef rather than Choice and larger shrimp. Its<br />
menu features about 110 items compared to The Cheesecake Factory’s 200, although the selection is equally diverse. (NRN<br />
5/12/03 p42)<br />
Barnes & Noble cafes introduced panini grills in the last year and the company is seeking a sandwich brand to add to its menu.<br />
The cafes serve Starbucks coffee beverages and Cheesecake Factory desserts. Stores also bake off cookies and scones<br />
daily. (NRN 7/28/03 p88)<br />
The Cheesecake Factory said Michael P. Berry resigned as president and chief operating officer of its restaurant division.<br />
Berry was named president and chief operating officer of 36-unit Back Bay Restaurant Group of Boston, where he will become<br />
the first person in the company’s 40-year history to serve as president other than founder Charles Sarkis. Sarkis will remain<br />
chief executive officer. Among Back Bay’s largest brands are Joe’s American Bar & Grill and Papa Razzi’s. (NDNF 9/26/03)<br />
Cheesecake Factory Inc. for the third quarter ended September 30, reported same-store sales increased 1.8% compared to<br />
the same quarter last year. Net income increased 19% to $14.4 million, and revenues increased 22% to $197.8 million. (NRN<br />
Daily NewsFax 10/23/03)<br />
Cheesecake Factory Inc. for the third quarter ended September 30, reported revenues increased 22% to $197.8 million<br />
compared to the same quarter last year. Comparable-restaurant sales increased 1.8%. (Nation’s Restaurant News 11/3/03<br />
p20)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
Bocadoro was opened in Boca Raton, FL, by Doug Zeif and Ian Berowitz. Zeif, who served as senior vice president at The<br />
Cheesecake Factory for nearly a dozen years before starting Fifth Taste Concepts with Berkowitz, described Bocadoro as “a<br />
Mediterranean village feast.” The partners are looking for additional sites for the Bocadoro concept in Boston and Washington,<br />
DC. (FA 11/03 p19)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
137
Chesapeake Bagel Bakery<br />
Headquarters<br />
100 Horizon Center Blvd., Hamilton, New Jersey 08691 USA<br />
Tel: (609) 631 7000 Fax: (609) 631 7060<br />
www.chesapeake-bagel.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 21,460 33,000 41,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 21,460 33,000 41,000<br />
U.S. Number of Units 50 60 72<br />
Company-owned - - -<br />
Franchised 50 60 72<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 450 540 -<br />
Concept Positioning |<br />
Chesapeake Bagel Bakery is a quick service chain specializing in on-premise made bagels. Open seven days a week, 80% of<br />
sales is during the breakfast and lunch day parts (some 35–40% is takeout). Bagels are made from scratch and baking is done<br />
several times each day to assure product freshness.<br />
Stores average 1,800–2,400 sq. ft., with seating for around 70 patrons. Newer stores have an exhibition-style kitchen; all have<br />
a cafeteria-style service line. Most are located in strip shopping centers and drive-through windows are used in some units.<br />
Plus, a nontraditional 600–700 sq. ft. prototype has been designed for use in airports.<br />
Units are equipped to produce bagels from scratch. However, other baked goods sold are prepared from mixes or frozen<br />
dough.<br />
The company began operation in the early 1980s, with the bulk of its growth through franchising the concept. In mid-1997,<br />
AFC Enterprises completed its acquisition of the chain but resold it two years later to New World Coffee-Manhattan Bagel Inc.<br />
Current management includes Anthony Wedo, chairman and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Offers 15 bagel varieties. Also menus bagel sandwiches such as Nutri Bagel with alfalfa sprouts, cheese & tomatoes & Vegi<br />
Melt with vegetable cream & Muenster cheeses, pizza bagels including its signature open-faced pepperoni, tomato sauce &<br />
cheese, soups, juices, soft drinks, coffee & tea. Other baked goods sold include cakes, brownies & cookies as well as<br />
croissants & Danish rolls. Party tray also menued.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
138
Chevys Fresh Mex<br />
Headquarters<br />
2000 Powell St. Suite 200, Emeryville, California 94608 USA<br />
Tel: (510) 768 1400 Fax: (510) 768 1460<br />
www.chevys.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 300,000 311,705 314,658<br />
Company-owned ($000) 215,000 228,590 236,204<br />
Franchised ($000) 85,000 83,115 78,454<br />
U.S. Number of Units 131 139 132<br />
Company-owned 93 101 94<br />
Franchised 38 38 38<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,700 2,700 2,512<br />
Concept Positioning |<br />
Chevys Fresh Mex are full-service restaurants that specialize in fresh, high quality Mexican foods, all made from scratch.<br />
Fresh Mex is Chevys registered trademark as their commitment is to serve the finest, freshest Mexican food. In fact, their<br />
salsa is blended fresh hourly and no tortilla older than three minutes is served.<br />
All food is made on-premise from fresh ingredients including beef, fish or chicken as well as produce. Nothing is canned or<br />
bottled, save for olive oil. Its ultra-thin tortilla chips are served warm from the fryer, cooked in canola oil.<br />
The company’s decor package is described as “modern Mexican” with neon and an updated color-scheme continuing to reflect<br />
its fun and fresh atmosphere. Many units are conversion of historical sites. Flour tortillas, served hot from "El Machino" (a<br />
contraption of conveyor belts and pulleys that bake up to 900 tortillas per hour), will continue to provide interest in each dining<br />
room.<br />
The chain has developed an additional concept. Fuzio, the original unit opened in mid-1997 in San Francisco, features a menu<br />
of “universal pasta,” as almost every region of the world has its own pasta dish. Fuzio brings some of them together under one<br />
roof . Open for both the lunch and dinner day parts, current menu favorites include Firecracker Pork Fusilli, Shanghai Curry<br />
Chicken and Crispy Calamari Linguine. Units are located in San Francisco, Los Angeles, and Davis, CA, Chicago and<br />
Washington, DC.<br />
Chevys was founded in 1986. In late May 1993, PepsiCo announced the acquisition of the chain. A franchising program began<br />
in 1996. In 1997, PepsiCo divested the company through a management-led buyout to J.W. Childs. In early 1999, Chevys<br />
announced its intent to acquire the Rio Bravo chain from Applebee’s International for some $53 million; the deal was<br />
completed in mid-April.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
139
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: mesquite chicken & beef fajitas al carbon; accounts for over 1/3 of orders. New varieties of fajitas include:<br />
lemon-rosemary infused chicken; portobello mushroom and asparagus fajitas; and Chimayo salmon fajitas served in a fresh<br />
corn husk with Mexican barbecue sauce. Other favorites include Baja baby back ribs, hand-rolled tamales and fresh fish<br />
tacos.Desserts include Ice Cream Baked Potato, Ooey-Gooey-Chewy Sundae, Chevys Flan, and Coconut Cajeta & Double<br />
Chocolate Sopapillas. Full liquor service available. <strong>Menu</strong> Prices: $4.95–$12.95. Check Averages: $11.50.<br />
<strong>Menu</strong> Development |<br />
Chevys is testing a brunch menu in eight California restaurants. Offerings include Huevos Rancheros ($6.95); Crab and<br />
Shrimp Omelet ($9.99); and Carne Asada a la Diabla, a marinated mesquite-grilled skirt steak with two eggs and fresh tortillas<br />
($9.99). Separately, the chain is testing new lunch and dinner offerings at its Santa Rosa, CA, restaurant. Examples include a<br />
seared ahi salad for $9.99. (NRN Daily NewsFax)<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Bar menus are often designed to save consumers time while offerings operators an opportunity to capture additional sales in<br />
off-peak and crowded hours. Chevys has made its entire menu available at the bar in a move to cut service time and notes<br />
that bar patrons tend to order equally from the appetizer and entrée sections. Proving most popular for bar service are its<br />
Mesquite Grilled Fajitas and the Fresh Mex Sampler, which combines spicy wings, tamales, chicken nachos and quesadillas.<br />
Kimpton Group has also recognized the appeal of bar menus and is now utilizing lounge menus of about 10 items in several of<br />
its newer hotels, rather than offering a more complete restaurant menu. The menus are often themed to a specific concept.<br />
Helix in Washington, DC, features retro-American foods such as Spicy Corn Dogs with Fairground Mustard Sauce, while<br />
Topaz, also in Washington, DC, emphasizes Asian fare such as Pork and Cabbage Spring Rolls with Sweet Chili Sauce and a<br />
Stir Fry of Scallops with Gingered Grits. Elsewhere, the McCormick & Schmick’s in Los Angeles reconfigured its bar menu to<br />
boost Happy Hour sales. It now serves a collection of $1.95 appetizers from 4p.m. to 7 p.m. Offerings are designed to<br />
introduce diners to prime seafood varieties, including Alaska halibut prepared on skewers and served as fish and chips and<br />
Chignik salmon, which has been prepared on skewers and as ceviche. The menu proved so popular, the restaurant ultimately<br />
decided to extend service, offering it again from 9 p.m. to midnight, essentially creating a second Happy Hour period. Other<br />
chains have also gotten into the act of bar service. Examples include: ■ Ultimate Fondue—bread bowl filled with crab meat,<br />
crawfish, shrimp and Cheddar cheese, Red Lobster ■ Blackened Chicken with Avocado Quesadillas, Dave & Buster’s.<br />
(Restaurant Business)<br />
Chevys debuted Buffalo Fajitas as a limited time offer in its Northern California and Portland, OR, markets. Available through<br />
July 20, the $11.99 fajitas are marinated in lemon chipotle and topped with fire-roasted corn salsa. They are served with rice,<br />
beans and a variety of toppings. The chain also began testing several new offerings in its Sacramento, CA, market. Entrees<br />
include Chipotle Chicken Enchiladas; Spinach, Mushroom & Artichoke Enchiladas; Crab and Shrimp Enchiladas; Lemon-<br />
Rosemary Chicken Tacos; and Habanero Steak Tacos. Prices for those items range from $7.99–$10.99. (NRN Daily<br />
NewsFax, 7/1/03, Nation’s Restaurant News, 7/14/03, p42)<br />
Chevys is testing two salads in its Sacramento, CA, market. They are Seared Ahi Salad and Santa Fe Chopped Salad. (NRN<br />
Daily NewsFax, 7/1/03, Nation’s Restaurant News, 7/14/03, p42)<br />
Chevys served a Live Maine Lobster Fajita at units in select markets through August 31. Diners in Portland, OR, could order<br />
the dish with a whole Maine lobster ($18.99) or a half-lobster ($14.99). (NRN Daily NewsFax, 8/5/03)<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
140
<strong>RISE</strong> COMPANY PROFILE<br />
Chevys Inc. is testing a new line of tapas at seven units in the Sacramento area. Priced from $4.99 to $7.99, new tapas<br />
options include Ceviche Shrimp, Fresh Mex Spring Rolls and Empanadas. (NRN Daily NewsFax 11/4/03)<br />
Chevys is testing a new line of Fresh Mex Style Tapas at seven units in the Sacramento, CA, market. The new offerings are<br />
designed to not only enhance the chain’s ethnic variety, but also to increase its portion options with foods for people that are<br />
hungry but don’t want a full meal. Ranging in price from $4.99–$7.99, offerings include Ceviche Shrimp, Empanadas, and: ■<br />
Fresh Mex Spring Rolls—filled with spicy pork, peppers and cheese; served with mustard-peach sauce and habanero pesto ■<br />
Crab & Shrimp Nachos—tortilla flats topped with black beans, melted cheese, crab and shrimp; served with fresh guacamole,<br />
mango salsa, green onions and Cotija cheese ■ Firecracker Wings—crispy wings served with habanero pesto and sour<br />
cream. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 11/5/03; NRN Daily NewsFax 11/4/03)<br />
Technology |<br />
Chevys has introduced a virtual private network (VPN) for its 120 restaurants and headquarters. The Netifice Retail Connect<br />
VPN service was developed by Netifice Communications with the intention to support supply chain integration with Web-based<br />
food ordering but is expected to enable Chevys to deploy new point-of-sale, inventory and ordering applications.<br />
(InternetWeek.com 9/17/03)<br />
Personnel |<br />
Ronald Maccarone, Chief Executive Officer<br />
Teresa Robinson, Chief Financial Officer<br />
Bruce MacDiarmid, Chief Marketing Officer<br />
Peter Serantoni, <strong>Menu</strong> Development/R&D<br />
Glenis Welzien, Director of Purchasing<br />
Kathy Gallegos, Vice President of Operations<br />
Allen Skversky, Product Development<br />
Darlene Hersch, Director of Marketing<br />
Serantoni Peter, <strong>Menu</strong> Development/R&D<br />
Jerry Horn, Chairman<br />
Peter Serantoni, <strong>Menu</strong> Development/R&D<br />
Jack O'Toole, Vice President of Finance<br />
Lee Kimball, Vice President of Purchasing<br />
Brian Bennet, Product Development<br />
News & Other |<br />
Chevys is testing a weekend brunch menu at eight California restaurants. Seven of the units are in Sacramento and one is in<br />
Emeryville. Brunch items include Huevos Rancheros ($6.95); Crab and Shrimp Omelet, $9.99; and Carne Asada a la Diabla, a<br />
marinated skirt steak grilled over mesquite and served with two eggs and fresh tortillas, $9.99. In related news, Chevys said it<br />
is testing new lunch and dinner items in a Santa Rosa, CA, unit, including a seared-ahi sandwich. (NRN 5/5/03 p156)<br />
Chevys announced it will be acquired by Consolidated Restaurant Operations, Inc., the operator of eight concepts, including El<br />
Chico, Cantina Laredo, The Spaghetti Warehouse, Good Eats, Cool River Café, III Forks, Lucky's and Silver Fox. Terms were<br />
not disclosed. (Company Release 6/16/03)<br />
Chevys began testing several new dishes at eight Sacramento-area restaurants. If successful, they will be offered systemwide.<br />
Offerings include Seared Ahi Salad; Chipotle Chicken Enchiladas; and Habanero Steak Tacos. Prices range from $7.99–<br />
$10.99. Also being tested is a line of Up Margaritas that are mixed tableside. (NDNF 7/1/03)<br />
Darden Restaurants bought five Rio Bravo restaurants from Chevys Inc. It plans to convert three of the sites—located in<br />
Grand Rapids, MI; Springfield, MO; and Morrow, GA—into Smokey Bones Barbeque restaurants. A unit in Strongsville, OH,<br />
will become a Red Lobster and one in Dunwoody, GA, will house an Olive Garden. Over the next 12 months, Darden said it<br />
plans to invest more than $2.5 million for renovations in each location and it will hire 100 employees for each restaurant.<br />
(NDNF 8/1/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
141
<strong>RISE</strong> COMPANY PROFILE<br />
Applebee’s Neighborhood Grill & Bar’s largest unit will be opened in Manhattan’s Times Square by Apple-Metro Inc. Seating<br />
about 400 and occupying 13,260 sq.ft., it will occupy a site that formerly housed Lundy’s restaurant. Apple-Metro, which<br />
expects the outlet to open in November, currently operates another Applebee’s in Times Square. It operates a total of 18<br />
Applebee’s, three Chevys and one Zanaro’s Italian restaurant in greater New York. (NDNF 10/2/03)<br />
Chevys Inc. filed for Chapter 11 protection after Consolidated Restaurant Operations suspended its planned acquisition of the<br />
Chevys and Fuzio chains. It cited California’s pending mandate for employer-paid health insurance and the state’s political and<br />
economic climate as reasons for the switch. The insurance mandate would begin in 2006 and include coverage for part-time<br />
workers. About 70 of Chevys and Fuzio Universal Pasta’s 129 units are in California. Consolidated also cited a proposition in<br />
San Francisco that would raise that city’s minimum wages. Chevys Inc. also owns Rio Bravo, which has been performing<br />
poorly, while Chevys and Fuzio produce strong results, according to the company. (NDNF 10/14/03 & 9/29/03)*See related<br />
brief in Noteworthy section.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
142
Chi-Chi's<br />
Headquarters<br />
2701 Alton Parkway, Irvine, California 92606 USA<br />
Tel: (949) 863 8500 Fax: (949) 863 8529<br />
www.chi-chis.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 186,100 204,851 207,089<br />
Company-owned ($000) 186,100 204,851 207,089<br />
Franchised ($000) - - -<br />
U.S. Number of Units 128 137 140<br />
Company-owned 128 137 140<br />
Franchised - - -<br />
International Sales ($000) 10,000 9,000 12,107<br />
International Units 8 7 13<br />
Average Sales/Unit ($000) 1,388 1,486 1,479<br />
Concept Positioning |<br />
Chi-Chi's restaurants are full service, family-style operations serving lunch and dinner. In addition, it has a leading marketshare<br />
line of food products such as salsa and corn ships available in supermarkets. Food preparation is basically from scratch, with a<br />
number of suppliers providing ingredients.<br />
The seating capacity is typically 200-400 in four dining rooms and a lounge. Each building is a stucco, Mexican hacienda style.<br />
Freestanding units contain 5,000–10,600 sq.ft. and are generally located in densely populated suburban areas. Units may also<br />
be in-line, forming part of a shopping mall. Smaller buildings are used for less densely populated markets or to "fill in" a<br />
market. In addition, it has an active remodeling program in place.<br />
Chi-Chi's was incorporated in December 1975 and was acquired in 1988 by Foodmaker, Inc. for some $230 million. In early<br />
1994, Foodmaker, along with Apollo Advisors and Green Equity Investors completed the acquisition of Family Restaurants,<br />
Inc. Included in the deal was the sale of Chi-Chi's to Family Restaurants, Inc. In 1999, parent Family Restaurants was<br />
renamed Prandium, Inc.<br />
Current management includes Bill Zavertnik, chief operating officer.<br />
<strong>Menu</strong> Positioning |<br />
Generous portions of Sonoran-style Mexican foods including Outrageous Burritos, Sizzling Enchiladas & Grilled Steak &<br />
Chicken Fajitas. Has limited selection of American items. Specialties include twice-grilled barbecue burrito served with garlic<br />
rice & corn cake ($8.99). Also menus sandwiches & wraps. Alcoholic beverages offered. Check Averages: $11<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
143
Personnel |<br />
Bill Zavertnik, Chief Operating Officer<br />
Stephen Sprowl, Vice President of Operations<br />
Stan Harvey, Vice President of Purchasing<br />
Steven Sprowl, Vice President of Operations<br />
Nate TenHuisen, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Prandium received a $6.4 million bid to purchase the company, according to a securities filing. The offer for the parent of Chi-<br />
Chi’s, Koo Koo Roo and Hamburger Hamlet comes from Prandium Acquisition Company LLC and the Los Angeles-based<br />
firms Triyar Cos. LLC and 180 Degree Group LLC, which teamed up with Goense Boundes & Partners of Lake Forest, IL, to<br />
submit a non-binding letter of intent to purchase the 178-unit restaurant operator and franchisor. The company’s spokesman<br />
could not be reached for comment. Not included in the deal is 14-unit Hamburger Hamlet, which Latin Intellectual Properties of<br />
Los Angeles has been seeking to buy since May 2002. Its $15 million bid for the chain was rejected last August. (NDNF<br />
5/30/03)<br />
Prandium said that its Koo Koo Roo chain agreed to sell its assets to Fuddruckers for about $4 million, according to an SEC<br />
filing. Koo Koo Roo and Chi-Chi’s, both subsidiaries of Prandium, had just filed for Chapter 11 bankruptcy protection. In related<br />
news, Prandium’s Hamlet Group subsidiary, operator of 14-unit Hamburger Hamlet, is negotiating to sell its assets to<br />
Fuddruckers. Prandium said that it is considering placing Hamburger Hamlet under the Chapter 11 shield as well, noting that<br />
the hamburger chain is a source of positive cash flow for the company. The judge of the Chapter 11 proceedings of Chi-Chi’s<br />
and Koo Koo Roo reportedly said he would approve $2.4 million in interim debtor-in-possession financing to the chains to fund<br />
operations until November 5. In addition, Chi-Chi’s entered into a non-binding letter of intent with CC Acquisition Holding Co.<br />
LLC, a newly formed entity whose majority owner is Worldwide Entertainment Inc., a Delaware corporation. (NDNF 10/10/03 &<br />
10/13/03)<br />
Chi-Chi’s filed for Chapter 11 bankruptcy protection. The concept is owned by Prandium, and has a letter of intent to sell Chi-<br />
Chi’s to a group headed by promoter Jack Utsick. (RestaurantBiz.com 10/10/03)<br />
Prandium is selling its Chi-Chi’s, Koo Koo Roo and Hamburger Hamlet brands. Prandium, which filed for Chapter 11 protection<br />
on October 8, already has potential buyers for the three brands. According to Prandium CEO Hugh Hilton, Chi-Chi’s has<br />
entered into a nonbinding letter of intent with CC Acquistion Holding Co. LLC, whose majority owner is Worldwide<br />
Entertainment Inc. Koo Koo Roo and Fuddruckers have entered into a definitive asset purchase agreement, and The Hamlet<br />
Group is also reported to be in negotiations with Fuddruckers. (NRN 10/20/03 p8)<br />
The Chi-Chi’s Mexican Restaurant near Pittsburgh was linked by investigators to all 510 confirmed cases of hepatitis A in the<br />
state of Pennsylvania. Scallions imported from Mexico were officially named the likely cause of the massive hepatitis epidemic.<br />
Chi-Chi’s said that health officials had absolved its employees of responsibility for the liver disease, which claimed three lives<br />
as it spread through at least five states. In response to the outbreak, Taco Bell, Chili’s, Eat ‘n Park and Panda Express were<br />
among the chains that pulled green onions from their kitchens in November. (NRN 11/24/03 p1 & 12/1/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
144
Chick-fil-A<br />
Headquarters<br />
5200 Buffington Rd., Atlanta, Georgia 30349-2998 USA<br />
Tel: (404) 765 8000 Fax: (404) 765 8140<br />
www.chick-fil-a.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,372,801 1,242,000 1,085,475<br />
Company-owned ($000) 1,306,503 1,182,000 1,033,456<br />
Franchised ($000) 66,298 60,000 52,019<br />
U.S. Number of Units 1,074 1,014 954<br />
Company-owned 889 838 792<br />
Franchised 185 176 162<br />
International Sales ($000) - - 598<br />
International Units - - 4<br />
Average Sales/Unit ($000) 1,470 1,410 1,304<br />
Concept Positioning |<br />
Chick-fil-A operates a chain of limited-service chicken restaurants. Stores are open Monday–Saturday for lunch and dinner;<br />
many also serve breakfast as the company continues to expand that daypart (now more than 10% of sales at freestanding<br />
units). In addition, nearly all company-owned units offer catering. Food at Chick-fil-A units is prepared almost exclusively from<br />
scratch at the unit each day. Operators may experiment with new items, subject to corporate approval, and regional tastes<br />
also may vary the menu.<br />
Most stores are located in shopping malls. Several size prototypes are used with the average measuring 1,410 sq. ft. An ideal<br />
size is 1,600 sq. ft. with a 50-seat dining area. In malls with more than 1 million sq.ft., the 1,800-sq.-ft. store, seating 72, is<br />
frequently used. Units have little storage space; deliveries of supplies are accepted daily or three times a week. New<br />
freestanding units, with 3,600 sq.ft. and seating for 90, feature a natural light core with an inside playground and a drivethrough<br />
window and are estimated to account for about 50% of 1990's new units. The company also has a double drivethrough<br />
prototype.<br />
Under a new philosophy, the company has begun an aggressive expansion in nontraditional markets including college<br />
campuses, school lunch programs, supermarkets, hospitals, airports, etc., whether the unit is freestanding or kiosk and cart<br />
operations.<br />
The company also operates Chick-fil-A Dwarf House restaurants, a family dining concept that has often served as the testing<br />
ground for Chick-fil-A operations. A gradual expansion of the concept began in mid-1991. Units offer all the menu items<br />
available at Chick-fil-A units as well as specialties like Hot Brown, a chicken casserole topped with cream sauce, bacon strips<br />
and paprika, burgers, steak and made-to-order breakfast combinations.<br />
S. Truett Cathy, the operator of a chain of Dwarf House coffee shops outside of Atlanta, introduced Chick-fil-A's signature item<br />
at the 1962 Southern Hotel and Restaurant Convention. Its first chain location opened in 1967 in Atlanta. In 1997, the<br />
company opened its first Truett’s Grill, a 50's-themed concept located in Morrow, GA. It was named in honor of Cathy and his<br />
50 years in the restaurant business.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
145
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
<strong>Menu</strong>s variety of chicken items including its own sandwiches that are fried, char grilled or barbecued as well as nuggets;<br />
chicken salad sandwich, tossed salad & char grilled garden salad. Newest items: Chicken Wraps in Spicy Chicken, Char<br />
grilled & Chicken Caesar options. Other items include lemon pie, lemonade, cole slaw, potato salad & fries. Recent<br />
introductions include sandwiches, brownies, and New York-style cheesecake & diet lemonade. Breakfast includes signature<br />
chicken biscuit & other biscuit-based sandwiches, platters & baked goods. Check Averages: $3.25<br />
Expansion Plans |<br />
Chick-fil-A plans to add 60 new freestanding restaurants this year as well as 15 licensed, primarily nontraditional outlets, and<br />
three to four new locations in malls. In 2002, sales at its mall units were not as strong as sales increases posted at newer<br />
freestanding locations. The company plans to promote the nutritional content of its salads and Cool Wrap sandwich line this<br />
year through in-store materials and ad campaigns. In addition, it plans to test new and improved salad and wrap offerings.<br />
(NRN 2/17/03 p4)<br />
<strong>Menu</strong> Development |<br />
Chick-fil-A introduced a Southwest Chargrilled Salad. Priced at $4.29, it combines spicy, grilled chicken, romaine and iceberg<br />
lettuces, red cabbage, carrots, grape tomatoes, roasted corn, black bean relish, Monterey Jack and Cheddar cheeses and<br />
packaged tortilla strips. (NRN Daily NewsFax, 8/1/03)<br />
Personnel |<br />
Dan Cathy, President<br />
James McCabe, Chief Financial Officer<br />
Timothy Tassopoulos, Senior Vice President of Operations<br />
Steve Robinson, Senior Vice President of Marketing<br />
David Salyers, Vice President of Marketing<br />
C. Steve Hester, Director of Purchasing<br />
Chick-fil-A postponed a marketing campaign featuring its “Eat Mor Chickin” cows in consideration of the domestic mad-cow<br />
discovery. (NRN Daily NewsFax 1/2/04)<br />
News & Other |<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
146
<strong>RISE</strong> COMPANY PROFILE<br />
Chick-fil-A was planning an August launch for a Southwest Chargrilled Salad systemwide. Priced at $4.29, it features spicy,<br />
grilled chicken on romaine and iceberg lettuce, red cabbage, carrots, grape tomatoes, roasted corn, black-bean relish,<br />
Monterey Jack and Cheddar cheeses and packaged tortilla strips. (NDNF 8/1/03)<br />
The University of Minnesota’s renovated Coffman Memorial Union includes a food court with national and local brands.<br />
Einstein Brothers Bagels and Chick-fil-A are augmented with local brands and proprietary concepts from contract feeder<br />
Sodexho. Also offered is a c-store, the M Deli and a Starbucks outlet. (FM 7/03 p14)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
The University of Pennsylvania signed a contract extension with Aramark that is valued at $16 million. It includes an<br />
investment plan for up to $10 million for foodservice facilities. The contract is for an initial two-year term with options for four<br />
additional two-year terms. Scheduled to debut in August were a new Chick-fil-A outlet, a library café, a coffee cart/cyber café,<br />
a Freshens Smoothies and Ice Creamery and a c-store. Slated to open in October is a diner concept tailored to meet demand<br />
for late-night and weekend dining. Also planned is a renovation of the university’s 1920s Commons residential facility and a<br />
redesign and expansion of the offerings at its McClelland Hall, a grab-and-go outlet. Aramark says the changes have been<br />
designed in response to customer feedback acquired through on-campus market research. (FSD 8/15/03 p10)<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
147
Chili's Grill & Bar<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
www.chilis.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,155,964 1,909,785 1,702,437<br />
Company-owned ($000) 1,872,101 1,545,562 1,298,666<br />
Franchised ($000) 283,863 364,223 403,771<br />
U.S. Number of Units 778 712 648<br />
Company-owned 664 603 476<br />
Franchised 114 109 172<br />
International Sales ($000) 159,000 139,488 120,783<br />
International Units 86 76 66<br />
Average Sales/Unit ($000) 2,900 2,850 2,728<br />
Concept Positioning |<br />
Brinker International operates and franchises Chili's Grill and Bar restaurants, which are open for lunch, dinner, and late-night<br />
meals seven days a week. Chili's units offer table or takeout service to a broad target market with special emphasis on the 18-<br />
to 44-year-old segment. The restaurants are full-service concepts, featuring a casual atmosphere and a limited menu. Liquor<br />
accounts for about 14% of sales. Its menu is also available for home delivery through the Home Delivery Network.<br />
Units are freestanding, averaging 4,500–5,500 sq.ft. and seating for 145–215 patrons. The casual, south-of-the-border interior<br />
decor features tiled floors and tables, copper-kettle lamps, ceiling fans, shutters and whimsical collectibles.<br />
Some 80% of unit’s features separate entrances for takeout order pick up. Plans call for all new unit construction to include<br />
this feature. In addition, the chain intends to retrofit all older units with designated takeout entries.<br />
The company was founded in Dallas in 1975 by brothers Larry and Jack Lavine. In May 1991, the parent name was changed<br />
from Chili's Inc. to Brinker International to better reflect the changing scope of the corporation foodservice operations as well<br />
as international expansion.<br />
<strong>Menu</strong> Positioning |<br />
Classic hamburgers such as Ground Peppercorn & Oldtimer. Southwest grilled items include baby back ribs, steaks & chicken<br />
as well as fajitas, chili, tacos, sandwiches, soups & salads. Beers, wine, sangria & margaritas served. <strong>Menu</strong> Prices: $5.29–<br />
$13.99. Check Averages: $10.45. Chili's Too: Burger, sandwiches, soups & salads, tacos, appetizers & desserts. Also menus<br />
yogurt smoothies.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
148
Promotion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chili’s promoted $5.99 boneless Buffalo wings and the new $11.99 Hawaiian steak with TV spots in August. (Nation’s<br />
Restaurant News 9/15/03 p11)<br />
<strong>Menu</strong> Development |<br />
Chili’s is testing several Asian-inspired dishes in select units. Specific test markets where the dozen new dishes are being<br />
served were not revealed. Offerings include: ■ Wings Over Shanghai—chicken wings tossed with ginger-citrus sauce and<br />
finished with sesame seeds ($5.99) ■ Top Shelf Filet—served with garlic shrimp, portobello mushroom and port sauce<br />
($16.99) ■ Hawaiian Steak—a marinated strip steak with ginger-citrus glaze ($11.99) ■ Ginger-Citrus Glazed Salmon ($10) ■<br />
Chicken Satay Pasta ($7.49) (NRN Daily NewsFax)<br />
Upscale ingredients are increasingly common on chain menus as operators work to combat slowing growth and heated<br />
competition. As a result, some of the latest trends in fine-dining are filtering down to casual-dining at a much greater pace.<br />
Examples are plentiful. T.G.I. Friday’s is now serving a Roma tomato bruschetta, while Bahama Breeze offers ahi tuna<br />
ceviche. Bennigan’s is now offering filet mignong in a port wine demi-glaze, while Chili’s has its own version of the molten<br />
chocolate cake popularized by chef Jean-Georges Vongerichten. (Wall Street Journal)<br />
Chili’s continues to refine its “Guiltless Grill” menu section with new offerings. It recently added a tomato basil pasta. (Nation’s<br />
Restaurant News 9/15/03 p46)<br />
Personnel |<br />
Wilson Craft, President<br />
Scott Nietschmann, Chief Operating Officer<br />
Miguel Rossy, Chief Financial Officer<br />
News & Other |<br />
The 100 largest U.S. restaurant companies in 2002 matched their 2001 performance, according to <strong>Technomic</strong> Inc. The<br />
aggregate annual rate of growth for those top operators was 4.7%. Their U.S. systemwide sales rose to $145.8 billion, a $6.6<br />
billion gain over the same chains’ 2001 results. The highest rate of growth in 2002 was in the “bakery/other sandwich”<br />
category, which grew 13.7%. The doughnut category was up 13%. The “broad menu” as well as Italian categories had sales<br />
growth that topped 8%. Among the fastest-growing chains were Starbucks, Ruby Tuesday, Subway, Chili’s Grill & Bar, Golden<br />
Corral and Sonic, according to <strong>Technomic</strong>. (NDNF 5/8/03)<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
149
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
Chili’s began recruiting managers from other industries last year to help satisfy its need for unit managers as it expands. About<br />
20% of the Brinker International-owned chain’s unit managers are promoted from within its hourly ranks and the rest had been<br />
recruited from other casual-dining operations. The chain hopes to now recruit up to 20% of its new managers from other<br />
industries with this broader approach. Since late 2001, Chili’s has hired more than 150 unit managers from industries such as<br />
airlines, home-improvement retail, meat processing, supermarkets and mass merchants. (CL 5/03 p118)<br />
Brinker International announced that Doug Brooks will assume the post of chief operating officer January 1 following Ron<br />
McDougall’s retirement. McDougall will continue as chairman. Brooks currently serves as Brinker’s chief operating officer, a<br />
post that will be filled by Todd Diener, current president of Chili’s Grill & Bar. Wilson Craft, current president of Big Bowl Asian<br />
Kitchen, will become president of Chili’s and J.J. Buettgen, who recently joined the company as senior vice president of<br />
marketing and brand development, will take over as president of Big Bowl. (NRN 7/7/03 p3)<br />
Baylor University will be the first college campus with a Chili’s Too restaurant. The scaled-down Chili’s, to be called Chili’s Too<br />
@ BU, will be housed in its own building and will be operated by Aramark, which manages Baylor’s foodservice. Aramark has<br />
signed a franchised agreement with Chili’s parent Brinker International. The restaurant will be open to the public. (NDNF<br />
5/2/03)<br />
HMSHost opened four new restaurants in May at Detroit Metropolitan Wayne County Airport. They are a Chili’s Too, a 173seat,<br />
4,600-sq.ft. restaurant, two National Coney Island restaurants–one an express unit and the other a 154-seat full-service<br />
outlet–and a Slapshotz Bar & Grill, a local-theme sports bar with 104 seats. (NRN 5/26/03 p32)<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
150
<strong>RISE</strong> COMPANY PROFILE<br />
Brinker International reported a 3% increase in same-store sales for the four weeks ended August 27. The rise includes<br />
increases of 3.5% at Chili's Bar & Grill, 2.9% at Romano's Macaroni Grill, 2.7% at On the Border Mexican Grill & Cantina and<br />
0.8% at Maggiano's Little Italy. (NRN Daily NewsFax 9/5/03)<br />
Chili’s reported same-store sales increased 3.5% in August. (Nation’s Restaurant News 9/15/03 p11)<br />
Chili’s Grill & Bar for the first quarter ended September 24, reported same-store sales increased 1.9%. (NRN Daily NewsFax<br />
10/22/03)<br />
Chili’s Grill & Bar for the five weeks ended October 29, reported same-store sales increased 1.2%. (NRN Daily NewsFax<br />
11/7/03)<br />
Chili’s for the 13-week first quarter ended September 24, reported same-store sales increased 1.9%. (Nation’s Restaurant<br />
News 11/3/03 p12)<br />
Brinker International recently hired a firm to develop a defined music style for each of its chains. The audio/visual systems<br />
company considered each chain’s distinct demographics, ambience and pace of dining when developing the customized<br />
music menus. Maggiano’s Little Italy, Chili’s Grill & Bar and On the Border Mexican Grill & Cantina each have music menus<br />
that include hundreds of singers and musical groups. Each unit downloads preset music through Brinker’s intranet on a regular<br />
basis and there is no need to change CDs. Separately, the Internal Revenue Service alleges that Brinker’s tip-reporting<br />
procedures don’t meet the requirements of a 1996 agreement, according to an SEC filing. The 1,400-unit company’s<br />
agreement with the IRS included requirements that it implement tip-reporting educational programs for its hourly restaurant<br />
employees and establish tip-reporting procedures. Brinker said it believes that it has complied with the agreement and notes<br />
that it is in discussions with the IRS but said it could not estimate if the resolution of the dispute would have any financial<br />
impact. (R&I 11/15/03 p19; NRN 11/24/03 p80)<br />
The Chi-Chi’s Mexican Restaurant near Pittsburgh was linked by investigators to all 510 confirmed cases of hepatitis A in the<br />
state of Pennsylvania. Scallions imported from Mexico were officially named the likely cause of the massive hepatitis epidemic.<br />
Chi-Chi’s said that health officials had absolved its employees of responsibility for the liver disease, which claimed three lives<br />
as it spread through at least five states. In response to the outbreak, Taco Bell, Chili’s, Eat ‘n Park and Panda Express were<br />
among the chains that pulled green onions from their kitchens in November. (NRN 11/24/03 p1 & 12/1/03 p1)<br />
Chili’s Grill & Bar parent Brinker International signed a development deal for 25 new units in the Cleveland and Youngstown,<br />
OH, areas and in parts of central Ohio and northeastern Pennsylvania. Opening the units will be David Strang, a member of<br />
the Midwest’s Strang restaurant family. The deal also includes Strang’s acquisition of four Chili’s in the Cleveland and<br />
Youngstown markets. Strang Corp. noted that the company is not part of this transaction. (NRN 11/24/03 p80; FIR 12/1/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
151
Chipotle<br />
Headquarters<br />
1543 Wazee St., Denver, Colorado 80202-1443 USA<br />
Tel: (303) 595 4000 Fax: (303) 595 4014<br />
www.chipotle.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 225,000 145,000 67,000<br />
Company-owned ($000) 225,000 145,000 67,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 232 177 104<br />
Company-owned 232 177 104<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,100 1,050 644<br />
Concept Positioning |<br />
Chipotle (a jalapeno that has been toasted and smoked) strives to offer premium-quality Mexican in a variation of two menu<br />
items—burritos and tacos. Items are made-to-order in front of customers and rolled into tortillas or placed into taco shells via<br />
servers in a cafeteria-style serving line. Carryout represents an estimated 50% of total sales at its new units.<br />
Units are in a variety of sites from freestanding to strip center locations and average 1,600–2,600 sq. ft., with seating for 25–96<br />
guests. Its decor features a spare industrial design that includes birch plywood, corrugated steel, wire mesh, pigmented<br />
concrete, stainless steel and leather.<br />
Steve Ells opened the first Chipotle Mexican Grill in July 1993 near the University of Colorado in Denver. In February 1997,<br />
McDonald’s Corp. agreed in principle to make a minority investment in the concept with options to raise its stake over time. In<br />
1999, McDonald’s increased its investment to more than 51%. In mid-2001, the chain dropped the Mexican Grill portion of its<br />
name and will be identified simply as Chipotle.<br />
Jeff Kindler, previously chairman and chief executive of Boston Market and executive vice president and general counsel of<br />
McDonald’s Corp., has assumed the newly created position of president New Brands. In that capacity he has corporate<br />
responsibility for Chipotle as well as McDonald’s other new chain brands including Boston Market and Donatos Pizza. In<br />
addition, Ells serves as president; Kevin Reddy is chief operations officer and Jack Hartung, chief financial officer.<br />
<strong>Menu</strong> Positioning |<br />
Made to order burritos, tacos & fajitas. Filling choices include black or pinto beans, grilled meats & vegetables, barbacoa<br />
(shredded, spicy beef), guacamole, sour cream & salsas. Sides include chips & salsas in hot, medium & mild flavors . Soft<br />
drinks, iced tea & bottled waters as well as variety of beers & margaritas available. <strong>Menu</strong> Prices: $4.95–$5.50. Check<br />
Averages: $7<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
152
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Vegetarians can now enjoy a greater variety of options on fast-food menus as operators work to meet demand for healthier<br />
foods and appeal to consumers, especially women, who are likely to eat elsewhere to find healthy choices. Upgraded salads,<br />
soy burgers, veggie wraps and soups, and yogurt smoothies are increasingly common. Burger King now offers a Veggie<br />
Burger, which can be prepared on a separate grill from its meat options upon request. It also has several side salads. Chipotle<br />
positions itself as a fresher approach to Mexican and offers a variety of meatless options, including a vegetarian burrito that<br />
can be customized, a side of rice and beans, and guacamole. McDonald’s also has a McVeggie Burger and has supplemented<br />
its menu with a line of premium salads served with Newman’s Own dressings. Subway offers a Veggie Delite sandwich, and<br />
select stores offer Gardenburger products. Wendy’s now has a range of meatless options, including four Garden Sensations<br />
salads and baked potatoes with several meatless toppings. Panera also broadened its vegetarian options this year. While it<br />
previously only offered vegetarian salads and soups, it now serves a Garden Vegetable Sandwich on ciabatta bread.<br />
(Vegetarian Times, 9/03, p63)<br />
Pork is valued for its versatility and rich flavor. The meat also enjoys strong popularity, with U.S. pork consumption growing<br />
22% from 1996–2001, according to <strong>Technomic</strong>. Further, in Restaurants & Institutions’ latest <strong>Menu</strong> Census, pork chops rated<br />
higher than rib-eye steak and roast beef, while pork tenderloin surpassed surf-and-turf combinations and lamb chops. As new<br />
preparations emerge, especially brining and renewed interest in braising, it is also becoming easier to avoid over-cooking.<br />
Flavorful spices and marinades also enhance appeal. At Ortanique, a small chain with locations in Coral Gables, FL, Las<br />
Vegas and Washington, DC, a double-cut pork chop bathed in jerk-seasoned marinade is a signature dish. At Sothy’s in<br />
Greenville, SC, a boldly flavored pork sandwich is a favorite. Pork butt is braised in a blend of hot sauce, brown sugar, soy<br />
sauce and water, then pureed with barbecue sauce. The mixture is then served atop grilled ciabatta bread with roastedpoblano<br />
coleslaw and white Cheddar cheese. At Chipotle, pork carnitas is a point of differentiation among other quick-casual<br />
Mexican chains. Last year the chain replaced its cubed pork carnitas with organic pork shoulder that is braised with thyme,<br />
juniper berries and other ingredients. It now sells 15 tons of the shredded pork each week—90% more than the previous<br />
version. (Restaurants & Institutions 10/15/03 p23)<br />
Personnel |<br />
Steve Ells, Chief Executive Officer<br />
Jack Hartung, Chief Financial Officer<br />
Kevin Reddy, Chief Operating Officer<br />
Ann Daniels, Director of Purchasing<br />
Dan Fogarty, Director of Marketing<br />
News & Other |<br />
McDonald’s Corp. declined to comment on media reports that it will sell its nonburger chains, including Boston Market,<br />
Chipotle and Donatos Pizzeria. The three brands are grouped under its “Partner Brands” division. McDonald’s reportedly has<br />
contacted private equity firms about the possibility of selling a 50% to 60% stake in its nonburger concepts. One report said<br />
the company is looking for a deal in which it retains the right to buy back the interest in about five years. With a total of 1,083<br />
units, the partner brands had total 2002 sales of $1 billion. McDonald’s also declined to comment on rumors that it is planning<br />
another round of layoffs that could involve several hundred employees. In 2002, the company cut 600 corporate jobs and in<br />
2001, it reduced the number of divisions from five to three and eliminated 700 jobs at its headquarters in Oak Brook, IL.<br />
Another media report said the company is considering reducing the number of U.S. divisions from three to two, which would<br />
cut costs and centralize the company even further. (NRN 4/7/03 p1; FIR 3/24/03 p7)<br />
Chipotle debuted its first freestanding store in Mentor, OH. Fairly small in size, it is 2,000 sq.ft. of the usual 2,400–2,800 sq.ft<br />
and seats 50. The design is “expandable” so that future stores can easily be made larger without the need to redraw the entire<br />
plan. In addition, the back of house has been retooled to improve efficiency. The unit shares the distinct decor of other<br />
Chipotle outlets, using corrugated metal, birchwood plywood, glass, steel piping and exposed ductwork. The company’s chief<br />
architect describes the look as “cantina moderne.” (FER 4/03 p45)<br />
Donatos Pizzeria is searching for a new chief executive following the resignation of Bill Rose, a 30-year veteran of McDonald’s<br />
Corp., which owns the 180-unit pizza chain. McDonald’s has declined to confirm reports that it is exploring a sale of its three<br />
non-burger chains, including Chipotle and Boston Market. (NRN 5/5/03 p156)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
153
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
154
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Corp. is “making headway” with operational changes, reorganized marketing efforts and “more wholesome<br />
choices” on the menu, chairman and chief executive Jim Cantalupo told shareholders at its May 22 annual meeting in Oak<br />
Brook, IL. He told shareholders that their “faith and patience” would be rewarded, although it could take up to 18 months. He<br />
acknowledged that the chain still has “a long way to go,” despite its domestic same-store sales’ positive turn in April following<br />
its debut of a new premium salad line. In related news, the company may eliminate more jobs after cutting 1,450 in the last two<br />
years. It told analysts that it is examining staffing levels in an effort to weed out duplication and waste. Special attention is<br />
being paid to headquarters staff, their role in the company and whether or not they are duplicating tasks that are being handled<br />
in the field. In other news, McDonald’s was ordered by a Los Angeles County Superior Court jury to pay $16.5 million to former<br />
four-unit Southern California franchisee Sandra Darling, who charged that the company had conspired to defraud her, wrongly<br />
force her from the system and pushed her into bankruptcy. The jury, which heard charges that McDonald’s was interested in a<br />
$3.5 million-a-year branch she ran and would not subordinate a loan she needed to make required improvements, awarded<br />
Darling $6.5 million in compensatory damages and $10 million in punitive damages. McDonald’s said it is confident the<br />
decision will be overturned. And finally, Cantalupo acknowledged that McDonald’s is conducting a strategic review of its<br />
nonburger chains—including Boston Market, Chipotle and Donatos—with Morgan Stanley. (NRN 5/12/03 p4 & 6/2/03 p4; RB<br />
5/15/03 p12; NDNF 5/27/03)<br />
Population shifts affect the restaurant industry. Emerging chains often look to population trends and try to respond<br />
appropriately; so many must have found recent U.S. Census Bureau data intriguing. The bureau revealed that Hispanics have<br />
become the country’s largest minority group with about 37 million people, with blacks numbering approximately 36 million.<br />
Studies also show that Hispanics are the third largest-spending ethnic group after whites and blacks. The greater the Hispanic<br />
community in the U.S., the more influence it likely has on all Americans and the food industry. Their culture, particularly the<br />
cuisine, spreads as Hispanic chefs prepare Latin-inspired foods and entrepreneurs open more such restaurants. The<br />
increased supply of Mexican and Latin fare seems welcome considering Americans have more adventuresome tastes than<br />
ever and increasingly indulge in ethnic fare. Naturally, this increased acceptance propels demand so more concepts emerge to<br />
feed it. In fact, <strong>Technomic</strong> believes the Mexican quick-casual segment in particular will double over the next five years. New<br />
competitors are sprouting up within the U.S. while several promising chains are being imported from Latin America and<br />
Mexico. These chains seem to cater well to those seeking authentic “south of the border” foods. The Wall Street Journal<br />
recently reported on such imported concepts that are worth watching, including: · Churromania—limited-service churro chain,<br />
imported in 2001 · Pollo Campero—limited-service chicken chain, imported in 2002 · El Fogoncita—quick-casual pork taco<br />
chain, imported in 2003 · Gorditas Dona Tota—limited-service cheese pastry chain, imported 2003 · El Tizoncito—quickcasual<br />
pork taco chain, imported 2003 Major restaurant companies have already invested in the segment. Jack in the Box<br />
bought Qdoba Mexican Grill this past February; Wendy’s International is invested in Baja Fresh Mexican Grill; and McDonald’s<br />
owns Chipotle Mexican Grill. The list of emerging chains with Mexican and Latin influences, including Southwestern fare, that<br />
we’re tracking includes Salsarita’s Fresh Burrito (6 units, profiled in this issue); Z’Tejas (12 units); La Salsa (96 units);<br />
Pancheros Mexican Grill (9 units); Chico’s Tacos (23 units); Burrito Beach (5 units); Burritoville (12 units); Taqueria Cantina<br />
and Burrito Joint (10 units); Left at Albuquerque (8 units); Atomic Burrito (3 units); Blue Mesa Grill (4 units); and Tia’s Tex Mex<br />
(29 units). While the number of Hispanics escalates, the amount of Americans in general who enjoy Mexican and Latin fare<br />
seems to grow as well, painting a bright future for Mexican and Latin-inspired concepts.<br />
Golden Corral Corp. chief executive Ted Fowler was awarded the Silver Plate Award by the International Foodservice<br />
Manufacturers Association. Other recipients include: Chipotle Mexican Grill founder and chief executive Steve Ells; Bert<br />
Cutino, partner of the Sardine Factory restaurant in Monterey, CA; Joe Wancha, vice president and general manager for the<br />
Historic Mission Inn in Riverside, CA; Lee Cockerell, vice president of foodservice for Walt Disney World Resorts in Kissimee,<br />
FL; Todd Foutty, foodservice director for Metrohealth Medical System in Cleveland; Dennis Barrett, foodservice director for<br />
Dallas Public Schools; Michael Bradley, auxiliary-services director at Ashland University in Ashland, OH; and Julienne Stewart,<br />
foodservice director, SAS Institute, Cary, NC. The Silver Plate Awards dinner will be held in Chicago May 19. (NRN 3/3/03 p4)<br />
Chipotle has opened its first outlet in Manhattan and plans to add two or three more units in the borough by year’s end. The<br />
McDonald’s Corp.-owned chain of 265 restaurants also plans to open an outlet in Brooklyn. The first location on East 44th St.<br />
is about 2,800 sq.ft. on two levels and seats 40 inside and 30 more on the patio. The Manhattan branch is the first in the entire<br />
Chipotle system to offer only naturally raised beef, chicken and pork. (NDNF 8/7/03)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
155
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Corp. recently made a number of personnel changes. Promoted was Claire Barbrowski to chief restaurant<br />
operations officer. Previously, she was president of the chain’s Asia Pacific, Middle East and Africa division. Marvin Whaley,<br />
president of the chain’s North Asia division, will replace Barbrowski. Vice chairman Jim Skinner assumed additional<br />
responsibilities, including overseeing McDonald’s Holding Co. (Japan) Ltd. Richard Floersch was named worldwide human<br />
resources director. Previously, Floersch was senior vice president of human resources at Kraft Foods International. Business<br />
development president Mats Lederhausen assumed more managerial duties and will focus exclusively on the chain’s partner<br />
brands, which include Chipotle, Boston Market and Donatos Pizza. In other news, the chain also approved a plan to offer<br />
franchisees payment for rebuilding costs. The company will pay $475,000 toward the estimated $1.7 million for rebuilding an<br />
older unit. Originally, McDonald’s expected the expense to be absorbed solely by franchisees. In exchange for the payment,<br />
owner-operators will increase their rent by 1%. (NDNF 11/5/03; CT 10/21/03 Sec. 3 p1)<br />
McDonald’s Corp. announced that it intends to end its joint venture with Fazoli’s and close its Pret a Manger stores in Japan.<br />
However, the company plans to keep its Chipotle and Boston Market concepts and retain its stake in the Pret concept.<br />
(Restaurant Business Daily News 12/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
156
Chuck E. Cheese's<br />
Headquarters<br />
4441 W. Airport Freeway, Irving, Texas 75015 USA<br />
Tel: (972) 258 8507 Fax: (972) 258 8545<br />
www.chuckecheese.com<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 682,200 645,400 586,859<br />
Company-owned ($000) 602,200 562,200 502,859<br />
Franchised ($000) 80,000 83,200 84,000<br />
U.S. Number of Units 433 402 379<br />
Company-owned 383 350 324<br />
Franchised 50 52 55<br />
International Sales ($000) 4,500 4,000 3,200<br />
International Units 3 3 2<br />
Average Sales/Unit ($000) 1,641 1,634 1,552<br />
Concept Positioning |<br />
CEC Entertainment operates family restaurants that market both food and entertainment—heavily skewed to children—under<br />
the trade name Chuck E. Cheese's. Some 66.8% of its revenues are related to food and beverage sales.<br />
The primary customer base consists of families with children between the ages of 2–12. The restaurants are usually located in<br />
shopping centers or are freestanding. Units typically range from 8,000–14,000 sq. ft. Dining rooms, which seat 250–375<br />
customers, are decorated in bright colors and feature a variety of musical entertainment by life-size, computer-controlled<br />
robotic characters. The dining room occupies approximately 25% of each restaurant's public area, and another 60% by its<br />
activity centers of family-oriented games, kiddie rides, arcade style games, video games and skill-oriented games.<br />
Renovation projects to keep the entertainment portion competitive have been in place since 1994. More games and rides<br />
including a Sky Crawl play area, as well as animatronics show tapes were part of an initial package. A security system to keep<br />
its young customers in the restaurant was also added. The latest phase includes new toddler play areas, skill games and rides<br />
as well as a prize area and sky-tube enhancements.<br />
In 1977, Nolan K. Bushnell, the founder of Atari, opened the first Chuck E. Cheese's Pizza Time Theatre center in San Jose,<br />
CA. At the same time, a similar concept called ShowBiz Pizza debuted, with the two becoming one company in 1985. Its<br />
current corporate name was adopted in 1998.<br />
Current management includes Richard M. Frank, chairman; Michael H. Magusiak, chief executive officer and president;<br />
Rodney Carter, executive vice president and chief financial officer, and Richard T. Huston, executive vice president of<br />
marketing and licensing.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: variety of pizzas. Also salad bar, sandwiches, cotton candy & ice cream desserts. Beer & wine available where<br />
laws permit. Check Averages: $6.50–$7.50<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
157
Personnel |<br />
Richard Frank, Chairman<br />
Michael Magusiak, President<br />
Odom Sherman, Vice President of Finance<br />
Roger Cardinale, Director of Purchasing<br />
Dick Hutson, Vice President of Marketing<br />
Walter Tyree, Chief Operating Officer<br />
Chris Morris, Chief Financial Officer<br />
Mark Flores, Vice President of Operations<br />
Jon Rice, Vice President of Marketing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CEC Entertainment appointed Chris Morris senior vice president and chief financial officer. Previously, Morris was senior<br />
director of finance with NPC International Inc. (NRN Daily NewsFax 12/17/03)<br />
News & Other |<br />
Chuck E. Cheese is expanding its More Fun value campaign to all corporate stores. Currently being tested in Los Angeles,<br />
Houston and Minneapolis, it offers all games and attractions for a single token and also dispenses more tickets and offers a<br />
greater selection of prizes. The chain does about 10% of its total volume in birthday parties. When on-site celebrations that<br />
aren’t held in the reserved party area are included, the percentage is likely nearly 20%. (RB 6/1/03 p30)<br />
Chuck E. Cheese for the third quarter ended September 28, reported revenues increased 14% to $170.1 million from $148.9<br />
million for the same quarter last year. Same-store sales increased 5.3%, and net income increased 2% to $16.8 million.<br />
(Nation’s Restaurant News 10/27/03 p11)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
158
Church's Chicken<br />
Headquarters<br />
980 Hammond Dr., Atlanta, Georgia 30328 USA<br />
Tel: (770) 350 3830 Fax: (770) 353 3074<br />
www.churchs.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 724,733 729,870 698,703<br />
Company-owned ($000) 253,741 292,000 320,939<br />
Franchised ($000) 470,992 437,870 377,764<br />
U.S. Number of Units 1,248 1,242 1,218<br />
Company-owned 284 397 461<br />
Franchised 964 845 757<br />
International Sales ($000) 168,744 170,000 180,131<br />
International Units 262 275 307<br />
Average Sales/Unit ($000) 650 660 696<br />
Concept Positioning |<br />
Church’s Chicken is currently the third-largest limited-service chicken chain in the world. The chain is positioned in the low-tomiddle<br />
segment of the fried chicken market. Approximately 82% of sales are attributed to takeout or drive-through. With<br />
development of its non-traditional unit program, especially those in c-stores, breakfast has been added to the operational mix<br />
of these units and its possibilities are being explored within traditional freestanding sites.<br />
Grade A Broiler chickens weighing 2.5–2.75 pounds are used. Bought fresh and cut into eight pieces, the pieces are<br />
marinated, floured and battered before deep-frying. The marinade, flour, batter, and seasoning mixes used are required<br />
proprietary products.<br />
Most units are freestanding and located in densely populated urban and suburban areas. They average 1,200 sq.ft., with<br />
seating for 22. Its nontraditional sites require as little as 450 sq.ft.<br />
A retired incubator salesman named G.W. Church started the chain in 1952 in Texas. In the late 1980's and early 1990's, its<br />
ownership passed through several different structures, with parent AFC Enterprises assuming control in late 1992 after<br />
emerging from bankruptcy protection.<br />
Current management includes Hala Moddelmog, president.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: fried chicken—by the box, piece or in dinner combinations. Also menus seafood & other chicken items as<br />
“limited time” offers. Other items include fries, mashed potatoes & gravy, coleslaw, corn-on-the-cob, fried okra, jalapeno<br />
peppers, jalapeno cheese bombers & honey butter biscuits. Glazed apple pie & soft drinks. Breakfast menu based on freshmade<br />
biscuits & includes several sandwiches such as chicken or sausage biscuits.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
159
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Church’s Chicken is planning a new flavor for its bone-in chicken. By mid-June all stores are expected to offer both its<br />
traditional Southern pan-fried chicken and a spicier, crunchier version called 4 Pepper Double Crunch. It is also exploring<br />
several new dark meat and boneless chicken offerings as well as a Brunswick stew. Spicier fare is also being tested with a<br />
‘Texican” line of products in the Southeast. It includes a thigh filet cruncher, chicken sandwich, buffalo breast filet, white bean<br />
chicken chili and a jalapeno cheese biscuit. The chain is also offering Shrimp Crunchers as a limited-time offer through the<br />
Lenten season in the U.S. and Puerto Rico. Priced at $2.99, the item features shrimp pieces fried with an herbed breadcrumb<br />
batter. (NRN Daily NewsFax, QSR Magazine, Food Institute Report, Restaurant Business Daily News)<br />
Church’s Chicken plans to begin offering a second flavor of chicken for the first time in its 50-year history. The new flavor,<br />
currently being tested in several regions, is called 4 Pepper Double Crunch. Its heavily seasoned batter is twice as thick and<br />
crunchy as the regular product. Church’s noted that the boldly flavored new chicken remains in the Southern flavor profile. It<br />
also is considering new dark meat and boneless chicken offerings as well as non-fried dishes such as Brunswick stew. In<br />
related news, Church’s has begun offering Shrimp Crunchers for a limited time. Available through the Lenten season, the new<br />
product features large pieces of shrimp covered with an herbed breadcrumb batter. The product, touted with national TV<br />
advertising, is priced at $2.99. (QSR 2/03 p13; NRN 3/3/03 p96; FIR 2/24/03 p6)<br />
Church’s Chicken is testing a Krispy Chicken Tenders and Waffles combo meal in Atlanta. It features two pieces of Krispy<br />
Tender Strips, two waffle sticks and packages of dipping sauce for the chicken and maple syrup for the waffles. Prices range<br />
from $1.99–$2.99 depending on location. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 10/1/03)<br />
AFC hopes to boost sales by selling more higher-priced meals and abandoning its bargain-price strategy. The company also<br />
plans to roll out new food items in an effort to attract additional customers. Popeyes currently is testing new seafood, roasted<br />
chicken and turkey dishes that include roasted turkey served over vegetable rice, roasted turkey Po’ Boy sandwiches and<br />
Cajun turkey. Church’s is expected to continue testing shrimp dishes, chicken tenders and Texas-style chicken. In addition,<br />
Popeyes will feature limited-time offers on crawfish and holiday family meals. (Food Institute Report 11/17/03 p7; Nation’s<br />
Restaurant News 11/17/03 p14)<br />
International Activities |<br />
The agreement is with Kuwait United Poultry Co., which will open the stores over the next five years in Bahrain, Kuwait, Oman,<br />
Saudi Arabia, United Arab Emirates and Qatar. The first four restaurants are slated to open in Kuwait this year. (NDNF 8/8/03)<br />
Church’s Chicken signed a developmental deal with Kuwait United Poultry Co., calling for the development of 60 Church’s<br />
Chicken units over the next five years in Bahrain, Kuwait, Oman, Saudi Arabia, Untied Arab Emirates and Qatar. The first four<br />
branches are expected to open in Kuwait this year. (Nation’s Restaurant News 9/15/03 p32)<br />
Technology |<br />
Instill Corporation announced that it will integrate the back-office systems at the restaurants and bakeries of AFC Enterprises,<br />
Inc. The integration allows AFC, parent company of Church's Chicken, Cinnabon and Popeyes, to connect existing back-office<br />
solutions to Instill's distributor network, where product information, including availability and price, is automatically updated.<br />
The company also released its Version 6.0 of the Data and Analysis Solution. The software enables systemwide visibility and<br />
actionable information with the intention of driving down food costs. Changes to the solution include improved navigation and<br />
new reporting options. (Company Release 8/5/03 & 8/12/03)<br />
Personnel |<br />
Hala Moddelmog, President<br />
Daniel Bauer, Chief Financial Officer<br />
Nana Mensah, Chief Operating Officer<br />
Melinda Ennis-Roughton, Chief Marketing Officer<br />
Antonella Bugatella, Director of Marketing<br />
Maureen Bower, Vice President of Finance<br />
Todd Walker, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
160
<strong>RISE</strong> COMPANY PROFILE<br />
Church’s Chicken named Daniel Bauer chief financial officer of Church’s Chicken. Previously, Bauer was vice president at<br />
AFC. (NRN Daily NewsFax 9/25/03)<br />
Church’s Chicken chief financial officer Carl Jakaitis resigned his post to become president of Royal Capital, Church’s largest<br />
franchisee. (Nation’s Restaurant News 9/15/03 p1)<br />
Church’s Chicken named Melinda Ennis-Roughton chief marketing officer. Previously, Ennis-Roughton was senior vice<br />
president of marketing for Arby’s. (NRN Daily NewsFax 11/7/03)<br />
AFC Enterprises named Nana Mensah chief operating officer for Church’s Chicken. Previously, Mensah has served with Long<br />
John Silver’s and PepsiCo. (Franchise Times 9/03 p52)<br />
News & Other |<br />
Church’s Chicken probably won’t expand its co-branding arrangement with White Castle, according to Frank Belatti, chief<br />
executive of AFC Enterprises, the chicken chain’s parent company. Church’s and White Castle share locations in several<br />
locations, primarily in New York. (RB 4/1/03 p12)<br />
AFC Enterprises Inc. reported domestic systemwide same-store sales decreased 1.4% for the four weeks ended September 7.<br />
The fallen sales included a decline of 2.3% at Church’s, 1.2% at Popeyes but a 1.4% increase at Cinnabon. (NRN Daily<br />
NewsFax 9/22/03)<br />
AFC Enterprises said its lenders will extend the deadlines for filing its annual report until October 31 and its 2003 quarterly<br />
reports until December 1. The agreement calls for AFC to deposit $32 million—about half of its proceeds from the recent sale<br />
of Seattle Coffee Co. to Starbucks Corp.—into a collateral account. If it does not meet its new deadlines for filing its financial<br />
statements, the deposited funds would be applied as prepayment against AFC’s term loans under its credit facility. AFC is<br />
parent of Popeyes Chicken & Biscuits, Church’s Chicken and Cinnabon. In other news, AFC’s stock price fell 16.25% on its<br />
last full day of trading on the Nasdaq exchange after it disclosed that its common stock was being delisted. AFC said its stock<br />
would be quoted on the “Pink Sheets” for unsolicited trading rather than on the OTC Bulletin Board because it had not filed<br />
financial statements dated within six month of a possible quote. Its stock was dropped by Nasdaq for similar reasons. The<br />
company said it was working to complete “as soon as possible” restatements for 2002, 2001 and 2000 and to file its 10-K<br />
annual and 10-Q quarterly reports with securities regulators for fiscal 2002 and the first two quarters of 2003. (NRN 8/25/03<br />
p81 & 9/1/03 p116)<br />
Popeyes Chicken & Biscuits is testing salads at its Roswell, GA, store and is considering adding them to the menu. In addition,<br />
sister concept Church’s Chicken, also owned by Popeyes parent AFC Enterprises, is considering adding salads and skinless<br />
chicken to its menu. (FIR 8/11/03 p1)<br />
AFC Enterprises said that it expects higher costs for its ongoing audit to yield financial restatements. It raised its projections for<br />
nonrecurring expenses in 2003, for its audit, to $17 million to $18 million, from its previous estimate in July of $14 million to<br />
$15 million. Separately, Church’s Chicken chief financial officer Carl Jakaitis resigned his post to become president of<br />
Church’s largest franchisee, Royal Capital. His move follows recent exits from the chain by its chief operating officer, Barbara<br />
Timm-Brock, and chief marketing officer Ann Stone. (NRN 9/15/03 p1 & 9/29/03 p3)<br />
Church’s Chicken for the third quarter ended October 5, reported same-store sales decreased 1.7%. (NRN Daily NewsFax<br />
11/7/03)<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
161
<strong>RISE</strong> COMPANY PROFILE<br />
AFC expects to boost sales by selling more higher-priced meals and abandoning its bargain-price strategy. The company also<br />
plans to roll out new food items in an effort to attract additional customers. Popeyes currently is testing new seafood, roasted<br />
chicken and turkey dishes that include roasted turkey served over vegetable rice, roasted turkey Po’ Boy sandwiches and<br />
Cajun turkey. Church’s is expected to continue testing shrimp dishes, chicken tenders and Texas-style chicken. Salads will<br />
continue to be an emphasis at both chains. In addition, Popeyes will feature limited-time offers on crawfish and holiday family<br />
meals. AFC’s Cinnabon is introducing smoothies, bite-sized cinnamon treats and low-calorie cinnamon snacks mixed with fruit.<br />
(FIR 11/17/03 p7; NRN 11/17/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
162
CiCi's Pizza<br />
Headquarters<br />
1080 W. Bethel Rd., Coppell, Texas 75019 USA<br />
Tel: (972) 745 4200 Fax: (972) 745 4204<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 334,200 325,500 301,000<br />
Company-owned ($000) 20,500 26,500 27,000<br />
Franchised ($000) 313,700 299,000 274,000<br />
U.S. Number of Units 417 375 354<br />
Company-owned 24 31 31<br />
Franchised 393 344 323<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 866 896 870<br />
Concept Positioning |<br />
CiCi's Pizza is a concept built around exceptionally low menu prices for pizza and traditional Italian foods. Items are available<br />
for eat-in or carryout. Open seven days a week from 11 a.m. to 10 p.m. (11 p.m. on Friday and Saturdays), the units average<br />
3,5400–4,000 sq.ft. Most are either freestanding or located in highly visible shopping centers in small to medium-sized towns<br />
of 50,000 or greater or in the suburban areas of major metropolitan centers.<br />
A new prototype was introduced in 2001 that gives units a lighter, brighter feel. Red awnings displaying its updated logo are<br />
being installed over unit entries and interiors of existing locations given a coat of off-white paint. New unit ambience will<br />
include light green walls, wood trim, earth-tone flooring and a mixture of booths and umbrella-covered picnic tables for seating.<br />
<strong>Menu</strong> upgrades also are being implemented, with a focus on quality upgrades as well as adding a two-item pasta bar.<br />
Foodstuffs for unit operations are shipped from JMC Restaurant Distribution on a weekly basis.<br />
As of July 1, 2003, the president of the company, Joe Croce, plans to sell the business to his longtime management team in<br />
order to spend more time with his family.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: $3.99 all-you-can-eat buffet that includes 16 varieties of round & deep dish pizza, pasta, pizza rolls, garlic<br />
cheese bread, salad & variety of desserts. Also makes special-order pizzas for same $3.99 price. Rolling out special pizzas<br />
such as a Philly cheese steak option during the winter. Other menu items include round & deep-dish pizzas in several sizes<br />
from $2.99–$5.99 for takeout. Specialty varieties include Alfredo, barbecue, Pizza Olé & Spinach AlfredoCheck Averages:<br />
$3.75<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
163
Personnel |<br />
Craig Moore, President<br />
Forbes Anderson, Chief Financial Officer<br />
Tom Koenigsberg, Chief Marketing Officer<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CiCi’s Pizza founder, president and chief executive Joe Croce is resigning from the 520-unit company that he grew over the<br />
last 18 years. Croce, 44, told a franchisee convention that he planned to sell his shares in the company by the middle of the<br />
year to a CiCi’s management group so that he could spend more time on his family and church. Ownership of the company will<br />
be assumed by Craig Moore, vice president of operations; Robert Kulick, president of JMC Restaurant Distribution, CiCi’s<br />
purchasing division; Forbes Anderson, chief financial officer for CiCi’s as well as JMC Distribution; Joe Flanigan, vice president<br />
of marketing; Robert Grosshuesch, vice president of training; and Robert Parent, vice president of development. Systemwide<br />
sales last year were $335 million. CiCi’s plans to add 70 more units in the current fiscal year. Currently located in 20 states, it<br />
is looking to expand into Ohio, Missouri and West Virginia. (NRN 2/17/03 p4)<br />
CiCi’s Pizza appointed Tom Koenigsberg chief marketing officer. He most recently was vice president of marketing, research,<br />
and development for the domestic T.G.I. Friday’s. (NRN Daily NewsFax 12/02/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
164
Cinnabon<br />
Headquarters<br />
6 Concourse Pkwy., Atlanta, Georgia 30328 USA<br />
Tel: (770) 391 9500 Fax: (770) 353 3074<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 185,000 185,800 171,366<br />
Company-owned ($000) 48,000 68,400 75,900<br />
Franchised ($000) 137,000 117,400 95,466<br />
U.S. Number of Units 478 422 389<br />
Company-owned 93 152 187<br />
Franchised 385 270 202<br />
International Sales ($000) 20,000 20,000 13,000<br />
International Units 125 122 62<br />
Average Sales/Unit ($000) 392 412 405<br />
Concept Positioning |<br />
Cinnabon is a chain of specialty bakeries open for breakfast and snack service. Considered the leading cinnamon roll bakery<br />
in the world, its signature rolls are made from a proprietary formula and marketed as "world famous cinnamon rolls." Units are<br />
primarily located in shopping malls, supermarkets and airports. Customers walk up and order from display cases. An open<br />
kitchen also adds to the appeal as customers can watch the preparation of all items.<br />
In 1999, the chain undertook a remodeling program, which included opening a new prototype. It changed about 60 units, more<br />
than one-third of its company-owned locations, into this design in 2000. Cinnabon projects that the entire system will be<br />
remodeled by 2004.<br />
Richard Komen and his company, Restaurants Unlimited, opened the first Cinnabon in a mall in SeaTac, WA, in 1985.<br />
Franchising activities began shortly thereafter. In 1996, the chain was separated from RUI with Cinnabon, Inc. remaining under<br />
the direction of Kevin Gillette, president and chief executive officer. In mid-1998, AFC Enterprises acquired it for some $65<br />
million.<br />
Chris Elliot was named president in January 2003.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: cinnamon roll in 2 sizes. Also menus beverages such as an iced mocha drink. <strong>Menu</strong> expansion focuses on<br />
development of complementary products.<br />
<strong>Menu</strong> Development |<br />
Cinnabon plans to launch several snacks, including bite-sized cinnamon treats, low-calorie cinnamon snacks mixed with fruit<br />
and smoothies. (Atlanta Journal-Constitution 11/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
165
Technology |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Instill Corporation announced that it will integrate the back-office systems at the restaurants and bakeries of AFC Enterprises,<br />
Inc. The integration allows AFC, parent company of Church's Chicken, Cinnabon and Popeyes, to connect existing back-office<br />
solutions to Instill's distributor network, where product information, including availability and price, is automatically updated.<br />
The company also released its Version 6.0 of the Data and Analysis Solution. The software enables systemwide visibility and<br />
actionable information with the intention of driving down food costs. Changes to the solution include improved navigation and<br />
new reporting options. (Company Release 8/5/03 & 8/12/03)<br />
Personnel |<br />
Christopher Elliott, President<br />
Lenore Krentz, Chief Financial Officer<br />
Sally Boyer-White, Director of Marketing<br />
News & Other |<br />
Seattle’s Best Coffee plans to step up co-branding with Cinnabon. Both brands are owned by AFC Enterprises. Two cobranding<br />
options are being tested: placing units side by side or building a small café within the bakery concept. Although both<br />
approaches will be used, the mini-café probably will be the major co-branding expansion vehicle, according to Seattle Coffee.<br />
(RB 4/1/03 p27)<br />
Cinnabon signed a licensing agreement with Lotta Luv LLC to sell Cinnabon-branded lip balms and glosses in stores such as<br />
Claire’s and Limited Too, which cater to young girls. The products will be cinnamon-scented to evoke the aroma of a Cinnabon<br />
bake shop, and the lip balm container will be shaped like a Cinnabon roll. AFC Enterprises-owned Cinnabon is a 614-unit<br />
bakery chain. (NRN 6/30/03 p18)<br />
Song airline will be selling Cinnabon’s Maraka Cinnamon Coffee Cakes on all morning flights for $3 as part of its branded<br />
menu strategy. The airline is Delta Airlines’ new low-cost carrier. This is the first Cinnabon product to be sold for immediate<br />
consumption outside of its traditional stores. (SF 6/03 p19)<br />
AFC Enterprises Inc. reported domestic systemwide same-store sales decreased 1.4% for the four weeks ended September 7.<br />
The fallen sales included a decline of 2.3% at Church’s, 1.2% at Popeyes but a 1.4% increase at Cinnabon. (NRN Daily<br />
NewsFax 9/22/03)<br />
AFC Enterprises said its lenders will extend the deadlines for filing its annual report until October 31 and its 2003 quarterly<br />
reports until December 1. The agreement calls for AFC to deposit $32 million—about half of its proceeds from the recent sale<br />
of Seattle Coffee Co. to Starbucks Corp.—into a collateral account. If it does not meet its new deadlines for filing its financial<br />
statements, the deposited funds would be applied as prepayment against AFC’s term loans under its credit facility. AFC is<br />
parent of Popeyes Chicken & Biscuits, Church’s Chicken and Cinnabon. In other news, AFC’s stock price fell 16.25% on its<br />
last full day of trading on the Nasdaq exchange after it disclosed that its common stock was being delisted. AFC said its stock<br />
would be quoted on the “Pink Sheets” for unsolicited trading rather than on the OTC Bulletin Board because it had not filed<br />
financial statements dated within six month of a possible quote. Its stock was dropped by Nasdaq for similar reasons. The<br />
company said it was working to complete “as soon as possible” restatements for 2002, 2001 and 2000 and to file its 10-K<br />
annual and 10-Q quarterly reports with securities regulators for fiscal 2002 and the first two quarters of 2003. (NRN 8/25/03<br />
p81 & 9/1/03 p116)<br />
AFC expects to boost sales by selling more higher-priced meals and abandoning its bargain-price strategy. The company also<br />
plans to roll out new food items in an effort to attract additional customers. Popeyes currently is testing new seafood, roasted<br />
chicken and turkey dishes that include roasted turkey served over vegetable rice, roasted turkey Po’ Boy sandwiches and<br />
Cajun turkey. Church’s is expected to continue testing shrimp dishes, chicken tenders and Texas-style chicken. Salads will<br />
continue to be an emphasis at both chains. In addition, Popeyes will feature limited-time offers on crawfish and holiday family<br />
meals. AFC’s Cinnabon is introducing smoothies, bite-sized cinnamon treats and low-calorie cinnamon snacks mixed with fruit.<br />
(FIR 11/17/03 p7; NRN 11/17/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
166
CKE Restaurants, Inc.<br />
Headquarters<br />
401 W. Carl Karcher Way, Anaheim, California 92801 USA<br />
Tel: (714) 774 5796 Fax: (714) 490 3639<br />
www.ckr.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Carl's Jr.<br />
Green Burrito<br />
Hardee's<br />
La Salsa Fresh Mexican Grill<br />
Timber Lodge Steakhouse<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,860,488 3,091,694 -<br />
Company-owned ($000) 1,155,735 1,217,023 -<br />
Franchised ($000) 1,704,753 1,874,671 -<br />
U.S. Number of Units 3,176 3,333 -<br />
Company-owned 1,259 1,273 -<br />
Franchised 1,917 2,060 -<br />
International Sales ($000) 152,000 139,500 -<br />
International Units 195 184 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
CKE Restaurants, Inc. owns and operates two of the largest hamburger chains in the U.S.: Carl’s Jr., founded 42 years ago,<br />
and Hardee’s, obtained through an acquisition completed in 1997. In addition, it also owns and operates Taco Bueno and acts<br />
as a franchisee of Rally’s, with 21 units in California and Arizona.<br />
Other CKE holdings include a dual branding agreement with Santa Barbara Restaurant Group (SBRG), the operator and<br />
franchisor of The Green Burrito, a Mexican quick-service chain.<br />
CKE Restaurants, Inc. started in 1941 when Carl N. Karcher opened his first hot dog stand and the first Carl’s Jr. in 1956. The<br />
present corporate name was adopted in 1994. In 1996 and 1997, it made several acquisitions, of which the most significant<br />
included Casa Bonita, operator of Taco Bueno restaurants and Hardee’s Food Systems from Imasco, Ltd. In 1997, CKE also<br />
formed Star Buffet as a subsidiary for its various family style restaurant, but sold its shares of Star Buffet, Inc. for $12.5 million<br />
in 1998. In April 1998, the company acquired its largest Hardee’s franchisee system, Advantica Restaurant Group’s 557 units<br />
for some $380.8 million and the assumption of $45.6 million in capital lease obligations. This purchase increased companyowned<br />
Hardee’s to 50% of the system. The company also sold its JB’s Family Restaurant subsidiary for 1 million shares of<br />
SBRG stock in late 1998, giving CKE an approximately 11% ownership of SBRG’s outstanding stock. Those holdings were<br />
sold in late 2000 to American National Financial.<br />
In addition, the company has a 9.2% ownership interest in Checkers Restaurants, Inc., parent of Rally’s, and the right to<br />
acquire an additional 7.4% of that company’s common stock. CKE also held interest in Boston West, LLC that operates Boston<br />
Market restaurants in designated markets in Southern California as a franchised area developer of Boston Chicken, Inc., but<br />
sold it in conjunction with McDonald’s Corp.’s acquisition of the Boston Chicken brand in 2000.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
167
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Hardee’s is launching its first low-carb offering to attract consumers on the Atkins diet. The one-third pound burger is wrapped<br />
in lettuce instead of being served on a bun. Parent CKE Enterprises is also considering introducing a low-carb bun. (Food<br />
Institute Report 9/29/03 p7)<br />
CKE Restaurants is rolling out low-carb burgers at its Hardee’s and Carl’s Jr. chains after successful testing. Hardee’s will<br />
serve a low-carb Thickburger priced at $2.89, while Carl’s Jr. will offer a low-carb version of its Six Dollar Burger. The<br />
sandwiches target consumers on low-carb diets and are wrapped in lettuce instead of a bun. Each has six grams of<br />
carbohydrates, 55 fewer than traditional versions. (Restaurant Business Daily News 12/16/03, NRN Daily NewsFax 12/16/03)<br />
Personnel |<br />
William Foley, Chairman<br />
Andrew Puzder, President<br />
Theodore Abajian, Chief Financial Officer<br />
Ellen Johnson, Director of Purchasing<br />
Mike Liby, Chief Operating Officer<br />
News & Other |<br />
Hardee’s is now offering its premium Thickburgers line in all 725 company-owned stores and in nearly three-quarters of the<br />
entire 2,250-unit system. Most of the remaining locations are expected to offer the new sandwiches by the end of the summer.<br />
The eight varieties of Thickburgers, featuring charbroiled Angus beef patties weighing 1/3 lb., 1/2 lb. and 2/3 lb., are topped<br />
with crispier lettuce, sweeter onions and tastier cheese than their burger predecessors. The line also includes the Six Dollar<br />
Burger, a 1/2 lb. sandwich that sells for $3.95 that was developed by parent CKE Restaurants. The burgers range from about<br />
$2.89 to almost $5. Along with the Thickburger rollout, Hardee’s is cutting nearly 40 lunch and dinner items from its menu,<br />
including fried chicken, roast-beef sandwiches and several side items. Its breakfast menu as well as its Big Chicken Filet<br />
remain unchanged. (RB 5/1/03 p46)<br />
CKE Restaurants expects to sell its 26-unit Timber Lodge Steakhouse for $10 million to an unidentified buyer, according to its<br />
quarterly SEC report. The deal was expected to close in August. Timber Lodge is CKE’s only full-service concept. CKE<br />
acquired Timber Lodge as part of its purchase of the La Salsa Fresh Mexican Grill and Green Burrito chains. Sixteen of<br />
Timber Lodge’s restaurants are in Minnesota. (NRN 7/14/03 p3; FIR 7/7/03 p8)<br />
Taco Bueno plans to open eight units this year and 12 in 2004. The new units are expected to be similar to a store in<br />
Brownwood, TX, that opened in December, which features a slightly smaller building of 2,300 sq.ft. and 72 seats. Most spacesaving<br />
occurred in the kitchen. The 125-store chain was acquired in 2001 by Jacobson Partners of New York, owners of<br />
Bertucci’s Brick-Oven Pizzeria, which teamed up with other investors to buy the chain from CKE Restaurants. In other news,<br />
Taco Bueno’s new steak or chicken fajitas platter grew to 8% of the sales mix within weeks of its introduction. At $4.49, the<br />
dish is the menu’s most expensive item. Last year, 119-unit Taco Bueno raised prices 1.5% but comparable sales grew 11%<br />
through May. (NRN 8/4/03 p4; CL 7/03 p2; SF 7/03 p17)<br />
CKE Restaurants Inc. for the second quarter ended August 11, net earnings decreased to $6.3 million from $10.8 million<br />
compared to the same quarter a year ago. Revenue increased 2% to $333.7 million. For the four weeks ended September 8,<br />
same-store sales rose 5.6% at Carl’s Jr. and 6.5% at Hardee’s but fell 5.8% at La Salsa. (NRN Daily NewsFax 9/19/03)<br />
CKE Restaurants Inc. for the third quarter ended November 3, reported that operating income rose 18.5% on a 7% increase in<br />
revenues to $334.8 million. (NRN Daily NewsFax 12/12/03)<br />
CKE Restaurants for the four weeks ended December 29, reported that same-store sales increases of 4.5% at Carl’s Jr., 7.3%<br />
at Hardee’s and 1.1% at La Salsa. (NRN Daily NewsFax 1/8/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
168
Claim Jumper<br />
Headquarters<br />
16721 Millikan Ave., Irvine, California 92606 USA<br />
Tel: (949) 756 9001 Fax: (949) 756 8733<br />
www.claimjumper.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 190,000 180,000 174,000<br />
Company-owned ($000) 190,000 180,000 174,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 30 29 28<br />
Company-owned 30 29 28<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 6,400 6,300 6,214<br />
Concept Positioning |<br />
Claim Jumper is a full-service, casual-dining chain open for lunch and dinner and late night dining seven days a week. Its<br />
appeal is based on offering an extensive menu of high-quality foods in generous portions. It offers nearly 150 freshly prepared<br />
menu items.<br />
Claim Jumper Restaurants is a full-service, casual dining chain open daily for lunch and dinner. A popular dining establishment<br />
for families, children, seniors and business professionals, Claim Jumper offers a menu with nearly 150 freshly prepared items.<br />
Quality, fair pricing and excellent value are core principles contributing to the company's success and longevity.<br />
With the exception of the newest Claim Jumper at South Coast Plaza in Costa Mesa, California, all restaurants are<br />
freestanding. The units are large, averaging 10,500 sq. ft., but newer locations are as large as 15,000 sq. ft., with seating for<br />
over 500 guests. Interiors are warm and comfortable with huge Douglas Fir logs, natural rock, corrugated and pressed tin,<br />
natural and finished woods and large fireplaces. Rich fabrics, authentic log chairs, moving fan systems and colorful Tiffanystyle<br />
lamps are used to decorate the lobbies, dining rooms and saloons. Many locations feature exhibition cooking where<br />
pizzas, salads, soups and desserts are prepared. Claim Jumper offers a complete line of private label retail products available<br />
at grocery stores throughout the west. Selections include barbecue sauce, appetizers, entrees and desserts. The products are<br />
licensed and distributed by American Pie, LLC.<br />
Founder/President, Craig Nickoloff, opened the original Claim Jumper Restaurant in Los Alamitos, CA, in 1977. Today, there<br />
are 30 locations throughout Arizona, California, Colorado, Nevada and Washington.<br />
Senior executives include Scott McIntosh, Chief Operating Officer, Bill Hustedt, Chief Financial Officer and Robert Ott, Vice<br />
President of Operations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
169
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Extensive menu, with over 400 selections, ranges from signature Wood-Fired Pizzas and Pasta to appetizers, soups, salad,<br />
sandwiches & burgers. Specialty entrees include ribs, rotisserie chicken, USDA Prime & Choice cut steaks & broiled & skillet<br />
blackened fresh fish. Popular items range from fresh baked potpies, meatloaf & fish & chips to Parmesan Crusted Chicken &<br />
Spicy Jambalaya. Desserts & muffins made on-premise daily; signature items include Six-layer Chocolate Motherlode Cake,<br />
Scratch Carrot Cake, I-Declair & Original Sourdough Bread Pudding. Full liquor service includes its own Hefeweizen, Honey<br />
Blonde Ale & Original Red Ale beers. <strong>Menu</strong> Prices: $6.95–$27.95.<br />
<strong>Menu</strong> Development |<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Smoking and wood-grilling are techniques being used to add flavor and texture to pork. Smoking helps transform the meat with<br />
an assertive, bold flavor, while wood-grilling also imparts unique flavor tones for added appeal. Native in New York relies on<br />
hickory-grilling to create its Two Jamaicas Jerked Pork Chops. The chops are coated with a dry spice rub and then grilled over<br />
hickory wood chips. They are served with banana-guava ketchup, mashed sweet potatoes, black beans and plantains. Claim<br />
Jumper has also recognized the benefits of in-house smoking and outfitted all units with smokers. Units use different woods<br />
based on availability in their area. Southern California outlets rely on oak or pecan wood, while apple, oak, pecan or fruit<br />
woods are utilized in Washington state. Its Baby Back Pork Ribs are now a specialty and feature hickory-smoked ribs served<br />
with a choice of two sides. Choices range from Garlic Parmesan Zucchini Spears and Creamed Spinach to Cheese<br />
Potatocakes and Sweet & Spicy White Rice. Hickory Beef Back Ribs are also smoked in-house. Napa River Grill in Louisville,<br />
KY, just recently began smoking. The decision to begin using the techniques was inspired by a pork Creole sandwich on its<br />
menu. Staff one day decided the sandwich would taste better with a smoky flavor and decided to buy a smoker. It now serves<br />
a Creole Roasted In-House Smoked Pulled Pork Sandwich served with chipotle barbecue sauce, grilled red onions, Cheddar<br />
and Jack cheeses, ginger-carrot slaw and french fries. (Restaurant Business)<br />
Personnel |<br />
Criag Nickoloff, Chief Executive Officer<br />
Robert Ott, Chief Operating Officer<br />
Bill Hustedt, Chief Financial Officer<br />
Mark Augarten, Vice President of Operations<br />
Larry Bill, Vice President of Marketing<br />
Luis Valladeres, Vice President of Operations<br />
Dave Wicker, Director of Purchasing<br />
Brian Okada, Chef<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
170
Coco's Bakery Restaurant<br />
Headquarters<br />
3355 Michelson Drive Suite 350, Irvine, California 92612 USA<br />
Tel: (949) 251 5700 Fax: (949) 251 5205<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 231,000 240,863 255,560<br />
Company-owned ($000) 182,000 192,809 208,822<br />
Franchised ($000) 49,000 48,054 46,738<br />
U.S. Number of Units 173 177 179<br />
Company-owned 135 139 144<br />
Franchised 38 38 35<br />
International Sales ($000) 295,000 297,820 351,489<br />
International Units 298 298 302<br />
Average Sales/Unit ($000) 1,325 1,357 1,450<br />
Concept Positioning |<br />
FRD Acquisition, a former subsidiary of Advantica Restaurant Group, took control of the Carrows and Coco’s brands in July<br />
2002 after Advantica divested the two concepts and changed its name to Denny’s Corporation. Soon afterwards, Catalina<br />
Restaurant Group Inc. bought the chains from FRD Acquisition. Coco's restaurants serve family-oriented, upscale American<br />
fare.<br />
Coco's was founded in 1962 by Jon and Audrey McIntosh. In 1965, all McIntosh's restaurant ventures were combined into one<br />
company called Far West Services. In May 1996, Advantica Restaurant Group completed its acquisition of Far West Services.<br />
Domestic franchising began in 1992 following earlier licensing in the international market, especially Japan and South Korea.<br />
In early 2000, Advantica announced its intent to sell the chain. In February 2001, FRD Acquisition Co., Advantica’s whollyowned<br />
subsidiary that held controlling interest in Coco’s as well as the Carrows chain, filed Chapter 11 bankruptcy to facilitate<br />
Advantica’s divestiture of the two chains. Catalina Restaurant Group Inc. now owns the chains.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: baked goods, pies, muffins and cookies. Broad-based menu including steak, fish, hamburgers, deli<br />
sandwiches, omelets, variety of pasta dishes and "healthy foods" such as soup and salad combos. Recent menu additions<br />
include: Parmesan herb onion rings; shrimp pesto penne, Thai chicken fettuccine; Mediterranean chicken; granola pancake<br />
combo; Cajun Ahi tuna Caesar salad; Greek salad; tortilla Cobb salad; focaccia tuna melt. Breakfast features traditional<br />
favorites such as French toast, eggs, bacon, ham and sausage. Many units offer beer and wine. Some units offer espresso<br />
bars. Check averages are $7.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
171
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Coco’s Bakery Restaurant introduced three new starters on its latest menu. In addition to Mozzarella Wedges ($4.99) and a<br />
BBQ Chicken Quesadilla ($6.69), the chain is now offering The Works Platter ($7.99) with a sampling of Southern-Style<br />
Chicken Strips, Spinach Dip & Chips, Mozzarella Wedges with Italian dipping sauce and Texas Toothpicks (deep-fried onions<br />
and jalapenos) with a side of its House dressing. (Company <strong>Menu</strong>, 6/03)<br />
Coco’s Bakery Restaurant launched several new entrees on its latest menu. They include: Sun-dried Tomato Chicken ($9.49),<br />
Tuscan Ribeye Steak ($12.99), Bourbon-Glazed Steak with Shrimp ($13.99), Blue Cheese Topped Sirloin ($10.99), Stuffed<br />
Rigatoni ($8.99), Scampi-Style Shrimp & Pasta ($9.99), Fresh Fish with Lobster Butter Sauce ($11.99) and Samuel Adams<br />
Beer-Battered Halibut & Chips ($9.99). (Company <strong>Menu</strong> 6/03)<br />
Personnel |<br />
David Devoy, Chairman<br />
Murray Wachtenheim, Chief Financial Officer<br />
Bill Lewis, Senior Vice President of Operations<br />
Susan Alexis, Vice President of Operations<br />
Tony Barr, Vice President of Operations<br />
Herschel Hendrickson, Vice President of Operations<br />
Heather Gardea, Chef<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
172
<strong>RISE</strong> COMPANY PROFILE<br />
Consolidated Restaurant Operations<br />
Headquarters<br />
12200 Stemmons Freeway, Dallas, Texas 75234 USA<br />
Tel: (972) 241 5500 Fax: (972) 888 8198<br />
www.croinc.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
Chain Brands<br />
CRO - Various Concepts<br />
El Chico<br />
Good Eats<br />
Spaghetti Warehouse, The<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 266,000 258,000 -<br />
Company-owned ($000) 223,500 216,000 -<br />
Franchised ($000) 42,500 42,000 -<br />
U.S. Number of Units 152 147 -<br />
Company-owned 123 120 -<br />
Franchised 29 27 -<br />
International Sales ($000) 17,000 17,000 -<br />
International Units 10 10 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Consolidated Restaurant Operations, Inc. (CRO) operates 137 full-service and 37 franchise, casual-dining restaurants located<br />
in 18 states and Canada. CRO employs approximately 7,000 full and part-time employees. The brands include The Spaghetti<br />
Warehouse, El Chico, Good Eats, Cantina Laredo, Casa Rosa and Lucky's. It also operates a membership only club called<br />
Mother Mesquite’s Cantina as well as several other single unit operations including Lucky’s Cafe and Casa Rosa. Its Cool<br />
River concept, an adult-oriented steakhouse, is operated as a separate company.<br />
Cool River is a large multi-focused complex complete with cigar bar and handcrafted billiards that averages $10 million a year.<br />
Some 60% of that is from food served in the cafe, which has a menu focusing on steak. Other popular choices are lobster,<br />
salmon, chicken and pork chops. <strong>Menu</strong> prices run in the $11.95–$29.95 range and check averages $15–$40. Currently, there<br />
are three units in operation—the original in Irving and Austin, TX and Denver—and some expansion is being considered.<br />
CRC was formed by Cracken, Harkey, Street & Harnett, a private investment firm spearheaded by Gene Street, the creator of<br />
Black-eyed Pea. In 1997, it acquired the holdings of El Chico Restaurants, Inc. In late 1998, the company announced its intent<br />
to acquire Spaghetti Warehouse, Inc. for some $62 million. The deal was completed in February 1999.<br />
<strong>Menu</strong> Positioning |<br />
Cantina Laredo features upscale, authentic Mexican with daily fish specials, grilled chicken and steaks. Cool River Café<br />
focuses on steak and seafood with a southwestern influence. Other popular items are lobster, salmon, chicken and pork<br />
chops.Lucky’s is a retro diner serving breakfast, lunch and dinner. Casa Rosa has Mexican cuisine, and its signature items<br />
include goat cheese quesadillas and wild game dishes.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
173
Personnel |<br />
E. Gene Street, Chairman<br />
John Harkey, Chief Executive Officer<br />
Mark Lamm, President<br />
Paul Hargett, Chief Financial Officer<br />
Joette Cox, Vice President of Purchasing<br />
Bill Watson, Vice President of Marketing<br />
Mike Caballero, Vice President of Operations<br />
Tony Davidson, <strong>Menu</strong> Development/R&D<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Consolidated Restaurants Inc. David Cohn died September 8. The former chairman was 85 years old. (NRN Daily NewsFax<br />
9/19/03)<br />
News & Other |<br />
Chevys announced it will be acquired by Consolidated Restaurant Operations, Inc., the operator of eight concepts, including El<br />
Chico, Cantina Laredo, The Spaghetti Warehouse, Good Eats, Cool River Café, III Forks, Lucky's and Silver Fox. Terms were<br />
not disclosed. (Company Release 6/16/03)<br />
Chevys Inc. filed for Chapter 11 protection after Consolidated Restaurant Operations suspended its planned acquisition of the<br />
Chevys and Fuzio chains. It cited California’s pending mandate for employer-paid health insurance and the state’s political and<br />
economic climate as reasons for the switch. The insurance mandate would begin in 2006 and include coverage for part-time<br />
workers. About 70 of Chevys and Fuzio Universal Pasta’s 129 units are in California. Consolidated also cited a proposition in<br />
San Francisco that would raise that city’s minimum wages. Chevys Inc. also owns Rio Bravo, which has been performing<br />
poorly, while Chevys and Fuzio produce strong results, according to the company. (NDNF 10/14/03 & 9/29/03)*See related<br />
brief in Noteworthy section.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
174
Corner Bakery<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
www.cornerbakery.com<br />
Ownership: Public<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 136,259 118,077 107,368<br />
Company-owned ($000) 133,493 115,919 105,818<br />
Franchised ($000) 2,766 2,158 1,550<br />
U.S. Number of Units 81 69 60<br />
Company-owned 78 67 58<br />
Franchised 3 2 2<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,800 1,800 1,824<br />
Concept Positioning |<br />
Brinker International operations include the Corner Bakery, an old world bread bakery-cafe chain that blends a fine selection of<br />
hand-made, hearth-baked breads with a European setting. The quick-casual concept serves breakfast, lunch and dinner. It<br />
features fresh sandwiches, salads, pastas, soups and sweets.<br />
Units vary in size depending on prototype design but are generally 3,000 sq.ft. and seat about 85. Some of the early units are<br />
also adjacent to its Maggiano's Little Italy restaurants. Takeout accounts for some 80% of its sales.<br />
Corner Bakery also has a catering group that offers a wide range of gift baskets, trays and lunch boxes for any scale from<br />
large corporate events to a small, personal brunch. Catering sales accounts for approximately 14.5% of sales.<br />
The first Corner Bakery unit was opened in 1991 by Brinker’s creative partner Lettuce Entertain You Enterprises, Inc. (LEYE),<br />
adjacent to a Maggiano's Little Italy in Chicago's near north area. In July 1995, Brinker International purchased the concept<br />
along with Maggiano's from LEYE in a stock deal.<br />
Key management includes Jim Vinz, vice president operations; and Nancy Hampton, vice president marketing. The president<br />
and chief operating officer position is vacant as of February 2003 and a replacement is being sought.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: variety of freshly baked breads including baguettes, crusty country boules, & specialty breads such as multigrain<br />
harvest & ryes. Also menus chef-prepared pizzas, panini, focaccia, sandwiches, soups, salads & an assortment of<br />
freshly baked goods such as muffins, brownies, fruit bars & cookies. <strong>Menu</strong> prices: average loaf $2–$5; sandwiches & soups<br />
$1.95–$3.95. <strong>Menu</strong> Prices: $1–$7.99. Check Averages: $8.27<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
175
Personnel |<br />
James Vinz, Vice President of Operations<br />
Nancy Hampton, Vice President of Marketing<br />
Blake Bennet, Product Development<br />
Jeanne Spannuth, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
Brinker continues to tweak the Corner Bakery concept, slowing expansion for the bakery/café chain. With Jean Birch named<br />
president in August, unit growth has stalled as Brinker looks to develop Corner Bakery into a more consumer-friendly concept.<br />
Some changes include a store redesign and a new ordering system. (MBN 10/7/03 p1 & 10)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
176
Cosi<br />
Headquarters<br />
242 W. 36 St., NY, New York 10018 USA<br />
Tel: (212) 653 1600 Fax: (212) 653 1666<br />
www.xando.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 84,400 70,000 53,000<br />
Company-owned ($000) 84,400 70,000 53,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 91 66 53<br />
Company-owned 91 66 53<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,560 1,500 -<br />
Concept Positioning |<br />
Cosí Sandwich Bar appeals to an upscale, urban clientele with its healthful alternatives to traditional fast food. Its breads are<br />
baked fresh throughout the day, and nothing on its menu is fried. With their elegant blend of cherrywood, natural wood, green<br />
stone, burnished steel and its signature brick oven centerpiece, units offer a unique quick-service environment in which guests<br />
can relax, talk with friends, read or conduct business. During the day, its limited-service menu selection is confined to coffee<br />
drinks and food, but after 4:00 p.m. or 5:00 p.m., Cosí opens its beer and wine bar and adds table service. Average store size<br />
is 2,500 sq. ft. Locations generally seat about 60 guests, and serve breakfast, lunch and dinner.<br />
The first Cosí Sandwich Bar was opened in New York City in 1995 after a group of friends experienced the unique sandwich at<br />
a restaurant called Cosí in Paris. Jay and Shep Wainright and Tiffany Muse then decided to bring the concept to the U.S. with<br />
the name Cosí Sandwich Bar. The first Xando Coffee and Bar was opened by Andy Stenzler and his partners David Kaufman<br />
and Nick Marsh in Connecticut in 1994. In September 1999, the company merged with Xando Inc., parent of Xando Coffee<br />
and Bar. Current management includes Stenzler, co-chairman and chief executive officer. In 2000, average systemwide sales<br />
were estimated at $53 million.<br />
<strong>Menu</strong> Positioning |<br />
Specializes in sandwiches made from "pizza Romana," thin crusty flatbread basted in olive oil that is baked continuously<br />
throughout the day and served warm from the oven. The impressive listing of fillings includes such items as Tandoori grilled<br />
chicken, Corriander roasted tomatoes, Italian Salami, Smoked salmon, Thyme Marinated Turkey Breast and Brie. Also offers a<br />
wide variety of coffees, espressos, iced coffees, screamers, lattes, mochas and teas. A small selection of soups, salads and a<br />
variety of baked goods round out the menu. The company also offers catering with party platters for all dayparts. Wine, mineral<br />
water and assorted soft drinks are also available. Sandwiches range from $5.95–$7.95. Check average: $8.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
177
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Cosí’s new menu, rolled out by the 90-unit chain in mid-December, added sandwiches such as the Cosí Club and Vegetarian<br />
Hummus. Also being expanded are its selection of soups and Squagels—its square bagels. This year, the company is adding<br />
four units in Chicago. Two will be full-day Cosí stores and the other two will be called Cosí Downtown and close at 5 p.m.<br />
(Restaurant Business)<br />
Cosí* has closed three of its restaurants and plans to shutter up to 10 more. It also will replace chief executive Jay Wainwright,<br />
who has held his job for less than two months. In addition, 94-unit Cosí plans a $12 million rights offering later this spring and<br />
has secured a $3 million interim secured loan. Proceeds will be used to fund new franchising and area-development programs,<br />
terminate leases, strengthen working capital and open company-owned restaurants. In addition, the company noted that<br />
William Forrest has succeeded Eric Gleacher as chairman and Nick Marsh was leaving his chief operating officer post. Forrest<br />
is managing director of Gleacher Partners’ Restructuring Group. While Cosí searches for his replacement, Wainwright will<br />
serve as interim chief executive officer. Due to its executive changes and an administrative staff reduction of nearly 30%, Cosí<br />
expects to record a charge of $3.7 million for severance costs in the first quarter. It also expects to record additional firstquarter<br />
charges of $2.1 million related to the three shuttered restaurants and to its cancellation of 25 locations in the<br />
development pipeline. (NRN Daily NewsFax)<br />
Cosí* will close 13 locations and cancelled plans to open 25 more stores this year. In addition, it is searching for its third chief<br />
executive since February. Earlier this year, it had named co-founder Jay Wainwright as chief executive but is now calling him<br />
an interim leader. Cosí now plans to pay out $3.7 million in severance to its employees who are being laid-off. That is a $2<br />
million increase from the severance budget originally set two months ago. (Food Institute Report; Restaurant Business)<br />
<strong>Menu</strong> Development |<br />
Smaller, snack-sized portions are becoming increasingly common on chain menus as many consumers adopt grazing styles of<br />
eating versus three main meals. According to Information Resources Inc.’s “What do Americans Really Eat?” survey, many<br />
consumers are relying on snack-size portions up to six times daily instead of larger main meals. To meet this need, a number<br />
of chains have retooled their menus. California-based Z’s Pizza already offers its pizza by the slice (a practice not terribly<br />
common on the West Coast) but is also considering “hors d’oevre-size” half slices as well as a 16-oz. side salad besides its<br />
standard 32- and 64-oz. sizes. Donatos has expanded its appetizer menu from side salads and bread sticks to now include<br />
three-cheese garlic bread and wings. Schlotzsky’s also noticed more traffic in off-peak periods and now offers sandwiches in<br />
small (4-inch) and regular (6-inch) sizes. Salads are also available in whole- and half-portions and baked potatoes in whole-<br />
and half-sizes are currently in test. Cosi serves S’Breadables to appeal to snackers. The item features wedges of its signature<br />
flatbread served with a choice of seven spreads. Options include sun-dried tomato, pesto ricotta, hummus and Tuscan salsa.<br />
(QSR Magazine, 9/03, p70)<br />
Personnel |<br />
Kevin Armstrong, Chief Executive Officer<br />
Mary Stickney, Chief Financial Officer<br />
William Forrest, Chairman<br />
David Winkel, Vice President of Marketing<br />
Paul Seidman, <strong>Menu</strong> Development/R&D<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
178
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Cosí is the target of at least four class-action lawsuits filed by shareholders in regard to its initial public stock offering of last<br />
November. A suit filed by Paskowitz & Associates said it was suing the company on behalf of investors who bought its<br />
common stock between November 21 and February 3. A prospectus issued by the company for the November 21 IPO said<br />
proceeds would be enough for two years of growth and would fund openings of as many as 59 new company outlets in 2003.<br />
Ten weeks after the IPO, Cosi announced that it would open just 10 new outlets in 2003 and “reverse” its company-opening<br />
business model to begin franchising. Staff layoffs were also planned. In addition, chief executive and co-founder Andy Stenzler<br />
resigned, Jay Wainwright has moved up from president to chief executive and the new chairman is investment banker Eric<br />
Gleacher. Following those announcements in early February, Cosí shares lost almost 40% of their value within two days. The<br />
95-unit chain said its expansion strategy is being altered in favor of a franchising and area-development program. The<br />
company plans to slow company-owned unit expansion, which is expected to help cut administrative staff. (NRN 2/17/03 p80 &<br />
2/25/03 p3; WRC 2/17/03; NDNF 2/18/03; FIR 2/10/03 p7)<br />
Cosí will close 13 locations and cancelled plans to open 25 more stores this year. In addition, it is searching for its third chief<br />
executive since February. Earlier this year, it had named co-founder Jay Wainwright as chief executive but is now calling him<br />
an interim leader. The New York City-based gourmet sandwich chain announced two months ago that 24 employees would be<br />
fired but that number appears to have grown since then. Cosi plans to pay out $3.7 million in severance to the workers. (FIR<br />
4/7/03 p4; RB 5/1/03 p16)<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
179
Country Kitchen<br />
Headquarters<br />
801 Deming Way, Madison, Wisconsin 53717 USA<br />
Tel: (608) 833 9633 Fax: (608) 826 9080<br />
www.visitcountrykitchen.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 245,000 250,000 254,000<br />
Company-owned ($000) 35,000 35,000 36,000<br />
Franchised ($000) 210,000 215,000 218,000<br />
U.S. Number of Units 250 249 255<br />
Company-owned 34 34 35<br />
Franchised 216 215 220<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 975 1,000 1,028<br />
Concept Positioning |<br />
Country Kitchen restaurants are family-oriented, full-service operations that have broad appeal. Dayparts vary widely<br />
throughout the system, with some doing more than a third of business at dinner and others more than 50% at breakfast. It<br />
maintains an aggressive product research and development department.<br />
Remodeling is another of the chain's priorities, with prototypes for both new and remodeled units that feature a contemporary<br />
country style look. The basic size is 5,200 sq. ft. with seating for 170. Interior schemes are used to tailor units to local market<br />
preferences.<br />
In late 1993, its first 10,000-sq. ft. travel center prototype opened. Convenience stores and fuel pumps as well as a 140-seat<br />
Country Kitchen make up the center.<br />
The first Country Kitchen restaurant opened in Cincinnati in 1939. By 1977, when the chain was acquired by Carlson<br />
Companies, Inc., it had units in the U.S., Canada and Puerto Rico. In July 1997, Carlson sold the chain to its largest<br />
franchisee group, Kitchen Investment Group, Inc. Terms were not disclosed.<br />
Current management includes Charles M. Myers, president; Dennis LaVenture, vice president of operations; Scott Hughes,<br />
vice president of marketing; and Clint Hamet, vice president of franchising.<br />
<strong>Menu</strong> Positioning |<br />
Full menu of American favorites, almost 100 choices in total, includes appetizers, soups, salads, chicken, seafood, beef &<br />
specialty entrees, sandwiches, burgers & desserts. New items added on regular basis. Breakfast signature item: Skillet<br />
Breakfast—egg combinations. Liquor & wine or beer served in 5% of units. <strong>Menu</strong> Prices: $2.99–$11.99. Check Averages: 7.25<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
180
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Country Kitchen is promoting a Country Star breakfast, which is priced from $1.99–$3.99 depending on the market. The meal<br />
includes three pancakes and two eggs mixed with ham and Wisconsin cheese. (NRN Daily NewsFax)<br />
Country Kitchen is running a Country Chicken Classics promotion in May. The campaign features menu favorites such as<br />
rotisserie-grilled chicken breast and chicken tenders as well as two new entrees. The Southwest Chicken Skillet ($7.99)<br />
features spicy, seasoned chicken breast surrounded by six quesadilla slices and kernels of sweet corn topped with black<br />
beans, sour cream and green onions. Chicken Italiano (also $7.99) is an Italian herb-spiced chicken breast topped with two<br />
grilled tomato slices and served on a bowl of pasta with marinara sauce and asiago cheese. (NRN Daily NewsFax)<br />
Country Kitchen launched a Country Summer Collection of meals for all dayparts beginning at $4.99. Offerings include a Big<br />
Country Breakfast; Pepper Steak Skillet; Smoky BBQ Pulled Pork Sandwich; Country Summer Fruit Salad; Canta-Loopa-Tuna<br />
(two scoops of tuna served with cantaloupe); French onion soup; and two desserts. The chain has also developed a Jalapeno<br />
BLT with jalapeno peppers and four strips of bacon enhanced with jalapeno flavor served on potato-chive panini bread.<br />
(Nation’s Restaurant News)<br />
Country Kitchen expanded its breakfast menu with an Asiago Tomato Omelet ($6.49) after bringing Asiago cheese in for other<br />
dayparts. Another popular introduction has been The Country’s Best Skillet ($6.69) of scrambled eggs, diced ham, peppered<br />
bacon, sausage links and regular bacon served over seasoned baby red potatoes. (Restaurant Business, 7/15/03, p68)<br />
Mushrooms are popular substitutes for proteins due to their lower cost, yet hearty taste. As a result, operators are utilizing<br />
mushrooms in a host of interesting applications. 312 Chicago serves a wild mushroom ragu with porcini, cremini and oyster<br />
mushrooms over soft polenta and mascarpone cheese, while Chattanooga, TN-based Gordon Biersch Brewery Restaurants<br />
offer a Smoky Portobello Mushroom Satay served with crisp polenta and salsa fresca. Country Kitchen features mushrooms in<br />
the majority of its menu items. Examples include Mushroom Spaghetti with Asiago cheese and a Grilled Cheese and<br />
Mushroom Panini. Romano’s Macaroni Grill had so much success with a stuffed portobello mushroom appetizer it increased<br />
the portion and made it an entrée. The mushroom is stuffed with ricotta, feta and Parmesan cheeses, spinach, garlic salt,<br />
pepper and seasoned bread crumbs. After baking, it is served over a salad of spinach, sun-dried tomato, roasted red pepper,<br />
radicchio and blue cheese with balsamic-honey dressing. (Chef 10/03 p21)<br />
Technology |<br />
Fishbowl, an e-mail marketing services firm, assists its clients in sending more than 2 million e-mail messages a month on<br />
behalf of about 60 restaurant chains, including Buca di Beppo, Johnny Carino’s Country Italian, Maggiano’s Little Italy and<br />
Texas Roadhouse. The company also specializes in database management; creation of e-mail content; survey planning<br />
strategies; and updates of e-mail materials to support quarterly marketing goals. Fishbowl clients pay a $7,500 set-up fee and<br />
from $100–$300 per restaurant per month, depending on the database size. Fishbowl client Red Robin Gourmet Burgers is<br />
rolling out a marketing program using e-mail to build brand awareness and guest loyalty. The 198-unit chain decided on this<br />
strategy after successfully testing a guest loyalty program created by Fishbowl. In the eight-restaurant pilot, the company said<br />
it received measurable results that e-mail marketing works. (NRN 5/19/03 p174)<br />
Personnel |<br />
Charles Myers, Chief Executive Officer<br />
Cliff Konkol, Vice President of Finance<br />
Dennis LaVenture, Vice President of Operations<br />
Donette Beattie, Director of Purchasing<br />
Angie Lukas, Director of Marketing<br />
News & Other |<br />
Country Kitchen International has signed a co-branding deal with Breadeaúx Pizza, a St. Joseph, MO-based dine-in and<br />
delivery chain. The family dining chain, which has 155 franchised and 35 company-owned stores, said it already has tested<br />
“several” co–branded units for six months before offering the package to its franchisees. The co-branded restaurants will offer<br />
Breadeaúx Pizza to both dine-in and delivery customers. (NDNF 5/6/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
181
Coyote Canyon<br />
Headquarters<br />
2908 N. Plum, Hutchinson, Kansas 67502 USA<br />
Tel: (316) 669 9372 Fax: (316) 669 0531<br />
www.coyotecanyonbuffet.com<br />
Ownership: Private<br />
Segment: Limited Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 17,000 9,100 5,300<br />
Company-owned ($000) 2,000 1,800 2,000<br />
Franchised ($000) 15,000 7,300 3,300<br />
U.S. Number of Units 7 7 3<br />
Company-owned 1 1 1<br />
Franchised 6 6 2<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,400 1,800 1,999<br />
Concept Positioning |<br />
Coyote Canyon is a casual western restaurant concept with an all-you-can-eat steak buffet. Steaks, chicken and burgers are<br />
prepared at a display grill. Customers can also select buffet items including soups, salads, a full bakery and dessert<br />
offerings.The Coyote Canyon concept is owned by Stockade Companies, Inc., which operates and franchises over 60<br />
restaurants in 10 states throughout the Midwest and the Plains.<br />
<strong>Menu</strong> Positioning |<br />
Signature all-you-can-eat Steak Buffet offers steaks, chicken and steakburgers prepared in front of guests on a display grill.<br />
Also features hot and cold buffet, soups, salads, vegetables, side dishes and a full-service bakery with rolls, muffins, pies,<br />
cakes and ice cream sundaes.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
182
Cozymel's<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
Ownership: Public<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 48,279 42,877 40,238<br />
Company-owned ($000) 48,279 42,877 40,238<br />
Franchised ($000) - - -<br />
U.S. Number of Units 15 14 13<br />
Company-owned 15 14 13<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,200 3,500 3,095<br />
Concept Positioning |<br />
Cozymel's Coastal Mexican Grill offers its patrons the flavors and flair of Mexico's Yucatan Peninsula in a full service, casualdining<br />
setting. Its ambience is "tropical Mexican” intended to evoke memories of Mexican sunsets, warm beaches, and festive<br />
celebrations. Deep-red peppers hang from rafters, weathered woods and hundreds of lights as well as an open kitchen add<br />
warmth and charm. Units are large, averaging 9,400 sq. ft. and have seating for 38 patrons.<br />
<strong>Menu</strong> Positioning |<br />
Traditional Mexican favorites including enchiladas, tamales, tacos & rellenos as well as chicken & fish entrees. Also Yucatan<br />
specialties such as Espada al Chile Anco, Lomo de Puerco & Salmon Tropical. Also menus signature margaritas & specialty<br />
frozen beverages. <strong>Menu</strong> Prices: $5.99–$19.99. Check Average: $14.59.<br />
Personnel |<br />
Jason Resseguie, Vice President of Finance<br />
Mark Brasseaux, Vice President of Operations<br />
Shelia Edwards, Director of Purchasing<br />
John Malone, President<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
183
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
184
<strong>RISE</strong> COMPANY PROFILE<br />
Crab House/Capt. Crab's Take-Away<br />
Headquarters<br />
1510 West Loop South Suite 1010, Houston, Texas 77027 USA<br />
Tel: (713) 850 1010 Fax: (713) 850 7205<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 53,000 54,200 53,200<br />
Company-owned ($000) 53,000 54,200 53,200<br />
Franchised ($000) - - -<br />
U.S. Number of Units 15 16 16<br />
Company-owned 15 16 16<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,400 3,400 3,324<br />
Concept Positioning |<br />
The Crab House is a chain of full-service, casual-dining seafood restaurants that are designed to appeal to families. Located in<br />
areas with above average household incomes or heavy tourist/convention business, the freestanding restaurants vary in size<br />
from 4,500 to 13,000 sq. ft., seating 200–400.<br />
The decor has a fresh, rustic New England nautical look on the outside as well as the inside of each unit. Exterior facades are<br />
reminiscent of an Atlantic seaboard lighthouse. Light woods and colorful marine artifacts such as brass ship appointments and<br />
hand-carved signs, and fish are used extensively to create the interior ambiance. Brown paper covers tables and wooden<br />
mallets and bowls as well as traditional china and stainless steel dinnerware add to the rustic feeling. Most outlets also have a<br />
seafood salad bar.<br />
In addition, the concept has a three-unit takeout concept, Capt. Crab's Take Away, that is similar to its full-service operation.<br />
The original units, all in the Miami area, feature outdoor patio seating only.<br />
The Crab House dates back to the mid-1970s. The company made its initial public offering in 1982 as Capt. Crab's, later<br />
changing its corporate name to Bayport Restaurant Group. In August 1996, Landry's Seafood Restaurants, Inc., completed its<br />
acquisition of Bayport.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: variety of fresh seafood. Daily "catch" includes 10 crab dinners, 12 fish offerings & 6 shrimp entreesAlso<br />
menus prime rib, alone, or in combination with seafood & various chicken & pasta dishes as well as appetizers, chowders &<br />
desserts. Full liquor service available. <strong>Menu</strong> Prices: $13.99–$18.99; some items priced based on market availabilityCheck<br />
Averages: $21. Capt. Crab's Take Away features various crab and shrimp combinations. Check Averages: $11<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
185
Cracker Barrel Old Country Store<br />
Headquarters<br />
305 Hartmann Drive, Lebanon, Tennessee 37088-0787 USA<br />
Tel: (615) 444 5533 Fax: (615) 443 9818<br />
www.crackerbarrel.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,430,600 1,325,000 1,649,191<br />
Company-owned ($000) 1,430,600 1,325,000 1,649,191<br />
Franchised ($000) - - -<br />
U.S. Number of Units 466 445 434<br />
Company-owned 466 445 434<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,315 3,250 3,799<br />
Concept Positioning |<br />
Cracker Barrel Old Country Store units are moderately-priced, full-service operations featuring country-style cooking and gift<br />
shops that are open seven days a week from 6 am to 10 pm Sunday-Thursday and (6am-11pm on Friday and Saturday)<br />
serving breakfast, lunch and dinner. Carryout service is available. <strong>Menu</strong>s are regionalized to take advantage of food<br />
indigenous to each area. It also retails its pancake mix, smoked bacon and sausage, coffee, fried apples and maple syrup in<br />
its gift shop and through its own catalog. These areas accounted for approximately 20% of Cracker Barrel total revenues in<br />
fiscal 2002.<br />
All units are freestanding and located near or adjacent to interstate highway interchanges, with much of the system located in<br />
its core markets. Recently some units have been opened in tourist destination areas. Stores average 9,000 sq. ft. with a twosection<br />
dining room, seating approximately 194. Units feature a rustic board-and-batten exterior design, wooden floors,<br />
fireplaces, and early American decor.<br />
Most food and restaurant supply purchases are centralized with custom distribution centers in Lebanon, TN; Dallas; Belkamp,<br />
MD; and Gainesville, FL. Certain perishable foods are purchased locally by individual units. Food is prepared on the premises<br />
from natural ingredients such as real butter, pure maple syrup, molasses, and honey.<br />
Cracker Barrel was developed by Dan Evins, who marketed gasoline on the interstate near Lebanon, TN. Cracker Barrel Old<br />
Country Store acquired the concept and was incorporated in 1969. The firm's initial public stock offering was made in<br />
November 1981. In 1998, the company completed an acquisition of Carmine’s Prime Meats Inc., an operator of two Gourmet<br />
Markets and an upscale trattoria, but Carmine’s is no longer a part of the CBRL Group. In early 1999, the company completed<br />
its acquisition of Logan’s Roadhouse, Inc., a casual-dining chain based in Nashville. Cracker Barrel Old Country Store and<br />
Logan’s Roadhouse are both owned by CBRL Group, Inc.<br />
Current management includes Dan W. Evins, chairman; Michael A. Woodhouse, president and chief executive officer and<br />
Cracker Barrel chief executive officer; Lawrence E. White, senior vice president and chief financial officer; and Donald M.<br />
Turner, president and chief operating officer, Cracker Barrel.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
186
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: biscuits & combination platters such as Meatloaf Dinner, homemade Chicken N’ Dumplings, Country Fried<br />
Shrimp Platter & beef stew with cornbread. Other entrees: steaks, ribs, chicken, fish, beef, hamburgers & sandwiches,<br />
vegetables plates, numerous sides & home-made soups. Breakfast offers eggs, hot cakes, bacon, country ham, grits & madefrom-scratch<br />
biscuits; available in all day parts. Complete dinner plates available for under $7. <strong>Menu</strong> Prices: $2.99–$13.99.<br />
Check Averages: $7.19<br />
<strong>Menu</strong> Development |<br />
Chicken dishes have gained even more exposure on menus as operators work to offer healthier or perceived as healthier<br />
options for consumers. The protein has long been popular for its versatility and applications for multiple dayparts. Ingredients<br />
and preparation techniques can also create nearly limitless flavor combinations. Cracker Barrel recently tested Broccoli<br />
Cheddar Chicken. Priced at $7.99, the dish features boneless chicken breast and broccoli florets in cheese sauce served with<br />
vegetables and biscuits or cornbread. Consumer response was impressive, and sales for the dish rivaled its signature turkey<br />
and dressing. Dairy Queen has relied on chicken to expand its non-burger options, increasing its chicken options by 40%. Its<br />
latest innovation is a Wild Buffalo Chicken Strip Basket. Other chain efforts include: ■ Screamin’ Chicken Buffalo Blue Cheese<br />
Sandwich—served on a hoagie bun, Checkers Drive-In Restaurants ■ Killer Cajun Omelet—with spicy diced chicken breast,<br />
mushrooms, Jack cheese, onions and Santa Fe sauce, First Watch ■ Camarones Escondido—grilled chicken breast stuffed<br />
with sautéed shrimp and topped with spinach, cheese and chipotle wine sauce, El Chico. (Restaurants & Institutions, 8/1/03,<br />
p39)<br />
Personnel |<br />
Michael Woodhouse, Chief Executive Officer<br />
Donald Turner, President<br />
Lawrence White, Chief Financial Officer<br />
Cy Taylor, Vice President of Operations<br />
Nelson Griffin, Director of Purchasing<br />
Chris Tomasso, Vice President of Marketing<br />
Mark Tanzer, Product Development<br />
Dan Evans, Chairman<br />
Cracker Barrel named Doug Barber division vice president of restaurant operations. (NRN Daily NewsFax 9/10/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
187
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
The last 10–15 years have been difficult for the industry segment referred to as “Family Style.” Back in the mid-1980s, this<br />
segment enjoyed growth in the 6% range. Since then, this category, often informally referred to as “coffee shops,” has been<br />
squeezed from below by traditional fast food and been hurt competitively by the strong growth of Casual Dining. Using our top<br />
chain data, a comparison of growth for this segment versus its competitive set illustrates the struggle. Top 100 Chain Growth<br />
by Segment Segment 1997–2002 5-Year CAGR* 1992–1997 5-Year CAGR* Quick Service Restaurants (QSR) 4.9% 5.2%<br />
Family Style 1.4 2.6 Casual Dining 10.7 11.8 * Compound annual growth rate Source: <strong>Technomic</strong> In total, Family Style is quite<br />
large—in excess of $32 billion, with major chains representing only a third of the business. From all indications, smaller chains<br />
and independents have not fared much better than the Top 100. It’s also true that, like any of the segments, individual<br />
performance varies. For example, despite challenges in Family Style, IHOP—a segment leader in chain growth—posted a<br />
healthy 11% CAGR for the last five years. Casual Dining is now putting increased competitive pressure on Family Style amid a<br />
backdrop of heightened consumer desire for value. While their menus may not be all that different, selected casual-dining<br />
chains are targeting the traditional players’ customers and more strongly working to appeal to families, as evidenced by<br />
children’s menus and prices comparable to the traditional Family Style players. As a noteworthy example, there is only a small<br />
difference, i.e., about 20¢, between a cheeseburger with fries at Denny’s versus Chili’s or Applebee’s. Further, it appears that<br />
the recent success of the quick casual segment again reinforces that consumers will pay more if they perceive they’re getting<br />
more than fast food. In fact, they are willing to pay prices comparable to traditional Family Style, even without receiving full<br />
service. As a result, traditional, major players are now trying to reposition their offerings and image, and new forms of Family<br />
Style appear to be emerging. Many of these concepts are now showcasing broader menus with expanded daypart appeal and<br />
more enticing decors than typically associated with the segment. Smaller chains, like Ruby’s Diner, are also challenging<br />
traditional perceptions of Family Style, and offer a viable and apparently attractive alternative to the traditional players. Other<br />
examples range from established players such as Cracker Barrel to emerging players such as Cheeburger Cheeburger, Pasta<br />
Pomodoro and Rotelli. AS I SEE IT, this category may be re-invented perhaps as “family casual,” offering a broad menu at<br />
traditional price points, i.e., at the low end of casual dining, but in a décor and environment more appealing to consumers than<br />
the coffee shop image that burdens many of the older players. If this happens, these established chains can also be expected<br />
to respond and we then would see a re-birth of a segment that used to enjoy about market average growth.<br />
CBRL Group Inc. reported net income for the fourth-quarter ended August 1 increased 17% to $35.5 million from $30.5 million<br />
a year ago. Revenues increased 6.3% to $580.3 million for the quarter. Same-store sales rose 0.1% at Cracker Barrel and gift<br />
shop sales grew 1.3%. Logan’s Roadhouse reported same-store sales increased by 0.7% for the quarter. (NRN Daily<br />
NewsFax 09/12/03)<br />
Cracker Barrel Old Country Store for the first quarter ending October 31, reported same-store sales increased 1%. (NRN Daily<br />
NewsFax 10/16/03)<br />
Cracker Barrel parent CBRL Group has phased out a program that extended stock options to hourly workers. Adopted in 2000,<br />
the pioneering initiative was halted because the company found that it wasn’t achieving its objectives of motivating employees<br />
to have a greater stake in the chain’s continued success and progress. The company told analysts that employees were<br />
treating the options as cash bonuses. Once they were vested, they were turning them in. CBRL provided 2.25 million options<br />
to non-executive workers in 2000 and 4.75 million in 2001. Employees told the company that options were less important to<br />
them than health benefits. (RB 10/1/03 p14)<br />
CBRL Group for its second quarter ending January 30, 2004, reported that same-store sales are up 1% to 1.5% at its Cracker<br />
Barrel Old Country Stores. (NRN Daily NewsFax 12/19/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
188
Cucina! Cucina! Italian Cafe<br />
Headquarters<br />
1745 114 Ave. S.E., Bellevue, Washington 98004 USA<br />
Tel: (425) 635 3575 Fax: (425) 637 7055<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 35,000 34,687 35,000<br />
Company-owned ($000) 33,500 33,401 35,000<br />
Franchised ($000) 1,500 1,286 -<br />
U.S. Number of Units 15 15 14<br />
Company-owned 14 14 14<br />
Franchised 1 1 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,400 2,400 2,499<br />
Concept Positioning |<br />
Cucina! Cucina! Italian Café is a full-service Italian café specializing in traditional Italian as well as cutting edge food. Although<br />
offering upscale menu items, the pizza/pasta Café's surroundings are informal. Open for lunch and dinner, units range in size<br />
from 4,400–8,400 sq.ft. with seating for 140–260 patrons.<br />
Schwartz Brothers Restaurants opened the first Cucina! Cucina! Italian Café in 1988. In 1993, the concept was spun off into a<br />
separate company, Cucina! Cucina!, Inc. Three units were closed in late 1998 to concentrate on its core market areas. Key<br />
management includes Bill Schwartz, president and chief executive officer; John Schwartz, vice chairman and executive vice<br />
president of operations; Mike Jaglois, senior vice president of marketing; and Paul Campbell, senior vice president and chief<br />
financial officer. Average unit volumes in 2000 were $2.5 million. Systemwide sales for 2000 were $35 million. Total company<br />
sales were over $40 million.<br />
<strong>Menu</strong> Positioning |<br />
Signature items include its pastas and wood-fired pizzas such as its Goat Cheese & Artichoke pizza with pesto and pine nuts.<br />
Pastas include fettuccine Alfredo, spaghetti puttanesca and spaghetti with marinara sauce. Pricing is moderate; ranging from<br />
$2.29–$l6.95. Check averages are $9–$10 at lunch and $14–$15 at dinner.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
189
Cucina! Cucina! Presto<br />
Headquarters<br />
1745 114 Ave. S.E., Bellevue, Washington 98004 USA<br />
Tel: (425) 635 3575 Fax: (425) 637 7055<br />
www.cucinacucina.com<br />
Ownership: Private<br />
Segment: Limited Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 5,000 4,750 5,700<br />
Company-owned ($000) 5,000 4,750 5,700<br />
Franchised ($000) - - -<br />
U.S. Number of Units 7 7 7<br />
Company-owned 7 7 7<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 700 680 814<br />
Concept Positioning |<br />
Cucina! Presto! specializes in fresh Italian food in a casual, quick-service format. Accommodating and targeting people on the<br />
move, units offer take home or eat in service, with take-out accounting for some 30–35% of sales. Units average 1,500–2,500<br />
sq.ft., with seating for 40–50 patrons. In 1998, though, the concept is fine-tuning is prototype and service systems. New stateof-the-art<br />
kitchen equipment is being added and customer order service system being reversed. Customers will order and pay,<br />
then go to tables and have their meals delivered to them in five minutes or less.<br />
Cucina! Presto! began in 1992 as a pasta/pizza bar in two upscale supermarkets after parent Cucina! Cucina! realized its Café<br />
customers wanted uncomplicated, high-quality foods that traveled well. In late 1998, it closed four units in several markets to<br />
concentrate efforts on its core areas. Current management includes Bill Schwartz, president and chief executive officer; Paul<br />
Campbell, senior vice president and chief financial officer; John Schwartz, vice chairman and executive vice president of<br />
operations; and Mike Jagolis, senior vice president of marketing. Its parent also operates Cucina! Cucina! Italian Café and a<br />
retail foods division, CCI. Systemwide sales in 2000 were $5.7 million; average unit volumes, $800,000.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: The "Family Style"—a complete meal of salad, bread sticks and pizza or pasta entree; feeds up to five people.<br />
Also offers gourmet pizzas, pastas, salads, soups and sandwiches. Its menu is streamlined from its full-size Italian restaurant,<br />
Cucina! Cucina! Italian Café (see separate listing). Entree prices range from $2.99–$6, with check averages around $8.50.<br />
Recent activity moved the menu to high and low price points; it is also considering offering pizza by the slice.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
190
Culver's Frozen Custard and<br />
ButterBurgers®<br />
Headquarters<br />
540 Water St., Prairie du Sac, Wisconsin 53578 USA<br />
Tel: (608) 643 7980 Fax: (608) 643 7982<br />
www.culvers.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 280,335 215,546 155,670<br />
Company-owned ($000) 6,899 6,717 4,434<br />
Franchised ($000) 273,436 208,829 151,236<br />
U.S. Number of Units 197 156 117<br />
Company-owned 5 5 4<br />
Franchised 192 151 113<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,581 1,537 1,108<br />
Concept Positioning |<br />
Culver’s from other quick-service concepts with a small town, friendly-folk philosophy and nostalgic feel. Culver’s has carved a<br />
niche somewhere between quick-service and casual dining by providing family-oriented service via takeout, drive-through or<br />
dine-in options. For dine-in customers, orders are taken at the counter and then delivered to their tables. Units are literally an<br />
acre-and-a-half in size with seating for typically 98 or 128 guests. The company reported that same-store sales increased 7%<br />
in 2000. Drive-through and takeout service accounts for 40% of sales.<br />
Despite the reference to frozen custard in its name, Culver’s signature Butter Burger has become an important element in its<br />
success. Made by lightly buttering the toasted crown of the bun, Culver’s uses a full-service versus quick-service preparation<br />
approach as each burger is cooked-to-order using 100% U.S beef.<br />
Its other signature item, frozen custard, is often defined as “premium ice cream.” It is made on premise, several times each<br />
day, and available in vanilla and chocolate flavors everyday as well as a “flavor of the day” chosen from some 141 different<br />
options.<br />
Current management includes Craig Culver, president and chief executive officer, and his wife Lea, vice president; Phil Keiser,<br />
chief operating officer; Joe Koss, chief financial officer; Art Cone, vice president of supply chain management; and Tom<br />
Wakefield, franchise sales.<br />
With three decades of restaurant experience, George Culver and son Craig created the Culver’s concept and opened the first<br />
restaurant in Sauk City, WI, in 1984. Franchising began in 1987, but the chain’s current expansion thrust began in 1995 when<br />
the company broke out of its home state and opened in Minnesota and Illinois. Today, five restaurants in the system are<br />
owned by the Culvers and serve as training restaurant. The remaining restaurants are owner/operator franchised restaurants.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
191
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: Butter Burgers served as singles, doubles and triples with your choice of condiments. Frozen Custard is<br />
served in cones, dishes, shakes, malts and a variety of sundaes. Additional menu favorites include Norwegian Cod, Pork<br />
Tenderloins, Philly Ribeye Steaks, Hot Dogs, Grilled, Hot ‘n’ Spicy, and Crispy Chicken as well as Chicken to go with sides<br />
such as mashed potatoes and gravy, cole slaw, etc. Fountain favorites include triple-thick concrete malts & shakes, oldfashioned<br />
sodas, sundaes & banana splits.Kid’s Meal offers a choice of ButterBurger, corn dog/hot dog, grilled cheese<br />
sandwich or chicken tenders plus a milk or small drink, fries & scoop of custard. Plus kids can also collect “tokens” for items<br />
such as hats, t-shirts, lunch boxes, etc. Check Averages: $7.00<br />
Personnel |<br />
Chris Contino, Vice President of Marketing<br />
Craig Culver, Chief Executive Officer<br />
Joseph Koss, Chief Financial Officer<br />
Phil Keiser, President<br />
Wendy Dodge, Director of Purchasing<br />
Barbara Behling, Director of Marketing<br />
News & Other |<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
192
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Culver’s is renovating its menu. Its core Butterburgers and frozen custard will remain but other items are being revised. Salads<br />
no longer feature only iceberg lettuce but now include green leaf and romaine, and frozen custard cakes now can be<br />
purchased year-round. In test is soup served in sourdough-bread bowls, which is slated for a fall rollout, and a grilled sandwich<br />
line may be expanded. Also in the works are several sauces for burgers. The company’s strategy is to open 50 restaurants per<br />
year and several in a state at one time to make better use of resources. Slated to soon get their first Culver’s units are<br />
Kentucky, Colorado and Ohio, expanding the brand to a total of 15 states. (R&I 7/15/03 p36)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
193
D'Angelo Sandwich Shops<br />
Headquarters<br />
600 Providence Highway, Dedham, Massachusetts 02026 USA<br />
Tel: (781) 461 1200 Fax: (781) 461 1896<br />
www.papaginos.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 115,000 110,000 115,000<br />
Company-owned ($000) 83,500 80,000 84,000<br />
Franchised ($000) 31,500 30,000 31,000<br />
U.S. Number of Units 216 200 180<br />
Company-owned 156 143 129<br />
Franchised 60 57 51<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 580 575 651<br />
Concept Positioning |<br />
D'Angelo Sandwich Shops is a chain of quick-service restaurants specializing in made-to-order grilled or cold cut sandwiches<br />
using fresh, high-quality ingredients. Units are open for lunch, dinner and snacks.<br />
Units can be either freestanding or in strip shopping centers that are generally located in major urban and suburban areas.<br />
Sizes range from 1,750–2,200 sq. ft. with seating for 25–35 customers. Standard decor for newer units features a green,<br />
russet and cream color scheme. Individual and booth seating is available.<br />
The chain also has an active nontraditional program. Currently a few of the sites include Boston University, the University of<br />
New Hampshire, Northeastern University and Fenway Park.<br />
Partners Brian and James McLaughlin and Jay Howland launched D’Angelo Sandwich Shops in 1967. In late 1993, the chain<br />
was acquired by PepsiCo. Its spin-off by PepsiCo was announced in late 1996 and the eventual sale to Papa Gino’s, Inc. was<br />
completed in September 1997.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Over 40 made-to-order hot & cold sandwiches available on 3 sizes French bread, pita & wraps & dressed with<br />
fresh vegetables & condiments per customer specification. Choices include combinations such as Number 9–lean shaved<br />
steak, peppers, mushrooms, onions & American cheese as well as seafood, Italian, roast beef, tuna, cheese steak, hamburger<br />
& pastrami. Also menus soups, salads & D’Angelo D'Lites, a line of nutritionally balanced sandwiches. <strong>Menu</strong> Prices: $3.50–<br />
$10<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
194
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
D’Angelo Sandwich Shops expects to grow outside of New England via franchise expansion. Franchise growth is being eyed<br />
for Long Island and Albany, NY, as well as Hartford, CT. D’Angelo Franchising Corp., operator of 156 company-owned and 60<br />
franchised limited-service sandwich restaurants, has units in Connecticut, Massachusetts, Maine, New Hampshire, Rhode<br />
Island and Vermont. Annual systemwide sales are approximately $115 million. D’Angelo’s broad menu includes subs, pita<br />
pockets, wraps, salads and soups. Playing on its New England connections, it also offers an $8.99 lobster sandwich that<br />
includes the meat of two whole lobsters and mayonnaise. Company officials hope to be able to offer franchisees the<br />
opportunity to co-brand. It currently has about five D’Angelo units co-branded with its Papa Gino’s concept along the<br />
Massachusetts Turnpike. (NRN 2/17/03 p18)<br />
<strong>Menu</strong> Development |<br />
D’Angelo’s Sandwich Shop has been working to create new sandwiches based on mainstream offerings with interesting twists.<br />
Recent rollouts have included a double peppercorn steak option featuring steak sautéed with cracked peppercorns and<br />
mushrooms, topped with American cheese and peppercorn dressing and a teriyaki steak sandwich with steak sautéed with<br />
green pepper and onions, layered with cheese, sesame seeds, lettuce and crispy noodles. Both are served on french-style<br />
bread. (Restaurants & Institutions)<br />
Lighter sandwiches emphasizing fresh ingredients are increasingly common in the limited-service segment as operators work<br />
to boost the healthy options on their menus. Schlotzsky’s is just one example. The chain is currently testing 13 “lighter side”<br />
offerings with nine grams of fat or less. Others have also created sandwiches for health-minded consumers, though taste and<br />
flavor remain priorities. Examples include: ■ Turkey Sandwich—with banana peppers, black olives, cucumbers, red onions,<br />
tomatoes, field greens and fat-free champagne vinaigrette on a baguette, Arby’s ■ Spicy Chipotle Chicken—with chipotle<br />
mayonnaise, red onions, romaine lettuce and roma tomatoes on Tuscan herb bread, Schlotzsky’s ■ Chicken Stir-Fry D’Lite—<br />
grilled chicken, mushrooms, peppers, onions, lettuce and tomatoes with fat-free garlic or ginger sauce, D’Angelo Sandwich<br />
Shops ■ Sweet Onion Chicken Teriyaki—teriyaki-glazed chicken strips, lettuce, tomatoes, onions, green peppers, olives and<br />
fat-free sweet onion sauce on choice of bread, Subway. (Restaurants & Institutions, 8/1/03, p29)<br />
D’Angelo Sandwich Shops is testing two sandwiches for potential systemwide rollout. A Turkey Tip includes mesquite-flavored<br />
turkey, lettuce, tomato and chipotle ranch sauce, and the Steak Tip has marinated sirloin tips, caramelized onions, lettuce,<br />
tomato and steak sauce. Both range in price from $4.59–$7.69. The chain has also brought back two popular sandwiches as<br />
limited-time offers. The Steak Bomb and Double Peppercorn Steak return due to consumer demand after their initial<br />
appearance last February. Prices range from $4.39–$7.49. (NRN Daily NewsFax 10/23/03, Nation’s Restaurant News 11/3/03)<br />
Personnel |<br />
Thomas Galligan, Chief Executive Officer<br />
William Chiccarelli, Vice President of Marketing<br />
Bruce Archambault, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
195
Dairy Queen/ Brazier<br />
Headquarters<br />
7505 Metro Blvd., Minneapolis, Minnesota 55439 USA<br />
Tel: (952) 830 0200 Fax: (952) 830 0301<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,482,000 2,500,000 2,530,000<br />
Company-owned ($000) 32,000 31,500 30,000<br />
Franchised ($000) 2,450,000 2,468,500 2,500,000<br />
U.S. Number of Units 4,882 4,957 5,058<br />
Company-owned 64 63 60<br />
Franchised 4,818 4,894 4,998<br />
International Sales ($000) 360,000 350,000 400,000<br />
International Units 834 819 846<br />
Average Sales/Unit ($000) 500 500 499<br />
Concept Positioning |<br />
International Dairy Queen Inc. develops, licenses, franchises, and services a system of stores under Dairy Queen and Brazier<br />
trademarks. Approximately 75% of all Dairy Queens offer the full fast-food menu.<br />
Dairy Queen stores are freestanding or in malls; about 90% in towns of 60,000 or less. Units vary in size, seating capacity,<br />
parking, and drive-through but currently average 2,300-2,800 sq. ft. for a full store. A new 1,500 sq. ft. prototype was opened<br />
in ‘96 for use in smaller markets. It features nostalgic elements with large in-store graphics and open window space.<br />
Another important expansion vehicle is the Treat Center, which teams Dairy Queen with either or both Karmelkorn and Orange<br />
Julius.<br />
International growth is an important corporate focus. In addition, a new subsidiary, Dairy Queen Corporate Stores, Inc., was<br />
formed in 1996 to purchase stores for both a minority interest joint venture program with local managers and development of<br />
in-depth operational know-how for successful stores.<br />
Parent International Dairy Queen is one of more than 90 approved manufacturers of Dairy Queen mixes and concentrates. It<br />
also sells equipment and purchases some supplies for resale to its independently owned, authorized warehouses. The first<br />
Dairy Queen was opened in 1940. In 1945, territorial franchising was begun. The Brazier menu made its debut in 1957. In late<br />
1989, an agreement between International Territory Operator Continental Dairy Queen Ltd. and IDQ was signed to permit<br />
development of stores in several European countries.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: soft serve ice cream in cones, shakes, malts, sodas & sundaes. Royal Treats basis of soft service line &<br />
includes Peanut Buster Parfait, Banana Split & Blizzard Flavor Treat, a blended product. Treatzza Pizza—cookie crust with<br />
layer of soft serve & topping sold in pizza box.<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
196
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Dairy Queen’s newest Blizzard of the Month is the Choco Cherry Love Blizzard. It includes DQ soft-serve ice cream, chocolate<br />
chunks and cherry topping. The chain was also scheduled to launch a Pecan Praline Parfait March 1. The item features softserve<br />
ice cream, brown sugar praline pieces and roasted pecans and is priced from $2.79–$2.99. A Mint Oreo Blizzard is<br />
planned for St. Patrick’s Day. (Restaurant Business Daily News, NRN Daily NewsFax)<br />
Dairy Queen launched a new Wild Buffalo Chicken Strip Basket. The meal comes with four or six original DQ chicken strips<br />
coated in a hot and spicy buffalo sauce and served with fries, celery and creamy blue cheese dipping sauce. In other news,<br />
the chain is preparing to launch three new Blizzard flavors that were chosen based on input from a panel of children ages eight<br />
to 12. The new varieties are Cotton Candy, Bubble Tape Bubble Gum and Caramel Apple Tootsie Pop. (NRN Daily NewsFax)<br />
Dairy Queen rolled out a Crispy Chicken Caesar Salad. Priced at $3.99, it features a blend of iceberg and romaine lettuces,<br />
parmesan cheese, seasoned croutons, crispy or grilled chicken strips and Caesar dressing. It will be available for a limited<br />
time. The chain already offers a Grilled Chicken Salad and Crispy Chicken Salad. (NRN Daily NewsFax, 6/4/03)<br />
Dairy Queen introduced Triple Chocolate Utopia. Priced at $2.99, the item features vanilla soft-serve ice cream topped with<br />
cocoa fudge, chocolate chunks and pieces of chocolate brownie. (NRN Daily NewsFax, 7/18/03)<br />
Chicken dishes have gained even more exposure on menus as operators work to offer healthier or perceived as healthier<br />
options for consumers. The protein has long been popular for its versatility and applications for multiple dayparts. Ingredients<br />
and preparation techniques can also create nearly limitless flavor combinations. Cracker Barrel recently tested Broccoli<br />
Cheddar Chicken. Priced at $7.99, the dish features boneless chicken breast and broccoli florets in cheese sauce served with<br />
vegetables and biscuits or cornbread. Consumer response was impressive, and sales for the dish rivaled its signature turkey<br />
and dressing. Dairy Queen has relied on chicken to expand its non-burger options, increasing its chicken options by 40%. Its<br />
latest innovation is a Wild Buffalo Chicken Strip Basket. Other chain efforts include: ■ Screamin’ Chicken Buffalo Blue Cheese<br />
Sandwich—served on a hoagie bun, Checkers Drive-In Restaurants ■ Killer Cajun Omelet—with spicy diced chicken breast,<br />
mushrooms, Jack cheese, onions and Santa Fe sauce, First Watch ■ Camarones Escondido—grilled chicken breast stuffed<br />
with sautéed shrimp and topped with spinach, cheese and chipotle wine sauce, El Chico. (Restaurants & Institutions, 8/1/03,<br />
p39)<br />
Dairy Queen rolled out two Halloween-themed Blizzard Treats. Twix or Treat features DQ soft-serve ice cream, chocolate<br />
topping and cookie dough candy bar pieces coated with chocolate and caramel, while Caramel Apple Pop combines chewy<br />
caramel and green-apple topping with candy pieces and soft-serve ice cream. It also comes with an individually wrapped<br />
Tootsie Roll caramel apple sucker. (NRN Daily NewsFax 10/2/03)<br />
Dairy Queen plans to roll out a Pumpkin Pie Blizzard in November. Priced at $2.39, the 12-oz. item features pumpkin pie mix,<br />
vanilla wafers and soft-serve ice cream. (NRN Daily NewsFax 10/24/03)<br />
Dairy Queen’s November Blizzard is a Pumpkin Pie offering that blends pumpkin pie mix, vanilla wafers and soft-serve ice<br />
cream. Prices range from $2.39 for 12 oz. to $3.19 for 21 oz. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 10/29/03)<br />
Dairy Queen plans to roll out the Yule Flip Peppermint Chip Blizzard in December. Priced at $2.39, the frozen dessert contains<br />
candy-cane pieces and chunks of chocolate mixed with soft-serve ice cream. The blizzard is part of the chain’s Blizzard of the<br />
Month promotion. (NRN Daily NewsFax 11/14/03)<br />
Dairy Queen added a Puckerberry Blizzard to its 2004 lineup. Priced at $2.39, the 12-oz. item is a blend of soft-serve ice<br />
cream with sour raspberry flavoring. (NRN Daily NewsFax 12/17/03)<br />
Dairy Queen planned to roll out a Yule Flip Peppermint Chip Blizzard in December as part of its Blizzard of the Month effort. It<br />
features candy-cane pieces and chunks of chocolate mixed with soft-serve. A 12-oz. size is priced at $2.39. (NRN Daily<br />
NewsFax 11/14/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
197
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Restaurants of Canada Ltd. and Dairy Queen Canada have begun purchasing all their beef from Canadian<br />
producers, which have experienced flagging sales in the wake of a mad cow scare in that country. Canadian politicians had<br />
requested the change. In the past, McDonald’s 1,300 Canadian units purchased nearly 80% of their beef from Canadian<br />
producers. Dairy Queen, with 550 units in Canada, was the first chain to agree to alter its beef purchasing practices. The<br />
Saskatchewan Party Caucus said it also petitioned the Canadian arms of Wendy’s, Burger King and A&W to buy only<br />
Canadian beef. In related news, McDonald’s Restaurants of Canada planned to give away an estimated three million freehamburger<br />
coupons on August 22 to burger buyers at its stores. They may be redeemed through September 30. (NRN 8/4/03<br />
p3; NDNF 8/8/03)<br />
Priszm Brandz said that its 250 Pizza Hut outlets across Canada would buy only 100% Canadian beef to help support the<br />
country’s ailing beef industry. Its Pizza Hut restaurants buy approximately 3 million pounds of beef products annually. Priszm<br />
franchises more than 760 KFC, Taco Bell, Long John Silver’s and Pizza Hut outlets. In making the 100% Canadian beef<br />
pledge, at least temporarily, it is following the lead of the Canadian arms of McDonald’s and Dairy Queen. (NRN 8/25/03 p56)<br />
Technology |<br />
American Express Co.'s ExpressPay is being tested by Carl's Jr., Dairy Queen, Quiznos Subs and Schlotzsky's Deli. Currently<br />
limited to the Phoenix area, the cashless transaction system charges a customer's American Express account from a keychain<br />
fob with RFID technology. Participating users have reported 30–40% quicker checkout times. (Nation's Restaurant News<br />
8/11/03 p70)<br />
Personnel |<br />
Charles Mooty, Chief Executive Officer<br />
Mike Kull, President<br />
Edward Watson, Chief Operating Officer<br />
Glenn Lindsey, <strong>Menu</strong> Development/R&D<br />
Pete Schumacher, Director of Purchasing<br />
Michael Sullivan, Chairman<br />
Russ Grundhauser, Vice President of Finance<br />
Michael Keller, Vice President of Marketing<br />
Jim Filaroski, Chef<br />
News & Other |<br />
Dairy Queen has expanded its irradiated-beef test to 16 New Mexico units and plans to expand testing to more markets<br />
nationwide. The chain has partnered with SureBeam Corp. for the program. (NRN 10/20/03 p84)<br />
DQ Grill & Chill stores are averaging two to three times the sales volume of regular Brazier units, according to International<br />
Dairy Queen. More than 20 Grill & Chill locations are in at least eight states. The company said it hopes to double the number<br />
of DQ Grill & Chill locations by year-end and then try to open at least that many more in 2004. (RB 11/15/03 p26)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
198
Damon's Grill<br />
Headquarters<br />
4645 Executive Drive, Columbus, Ohio 43220 USA<br />
Tel: (614) 442 7900 Fax: (614) 538 2517<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 285,431 284,844 284,618<br />
Company-owned ($000) 66,657 55,914 51,587<br />
Franchised ($000) 218,774 228,930 233,031<br />
U.S. Number of Units 137 137 141<br />
Company-owned 33 26 23<br />
Franchised 104 111 118<br />
International Sales ($000) 11,000 10,000 8,000<br />
International Units 5 4 2<br />
Average Sales/Unit ($000) 2,250 2,250 2,242<br />
Concept Positioning |<br />
Damon's Grill is a chain of full-service restaurants that have a casual, quiet dining room as well as a high-energy clubhouse<br />
area with DTV, a proprietary multi-screen entertainment system offering sports, network programming and interactive games.<br />
The main dining area and clubhouse seat around 200 and include a bar.<br />
Damon's dates back to 1979 with the opening of a unit in Columbus, OH. In March 1988, it signed a franchise agreement for<br />
its first unit outside of the U.S.; the unit is located in Lincoln, England. A second unit opened in Sheffield, England in October<br />
1995.<br />
In June 1993, Damon's International acquired its franchise and development rights as well as service marks and intellectual<br />
properties from Damon's Mgmt., Inc./Damon’s Franchise Corporation of Hilton Head, SC.<br />
Current management includes Shannon Foust, president and chief executive officer<br />
<strong>Menu</strong> Positioning |<br />
Signature items: barbecue ribs, prime rib & fried onion loaf. It also features other grilled steaks, chicken, seafood and salad<br />
entrees. Full liquor service available. <strong>Menu</strong> Prices: $5.99–$17.99. Check Averages: $7–$15<br />
<strong>Menu</strong> Development |<br />
Damon’s reported it would nearly double its wine selection with the February rollout of its newest menu. It will now offer 10 to<br />
12 varieties in an effort to build alcohol sales, which have eroded over the years. (Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
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199
<strong>RISE</strong> COMPANY PROFILE<br />
Damon’s Grill has completed the third phase of its menu overhaul with the rollout of 12 new lunch, dinner and appetizer<br />
offerings. Its lunch menu now includes a new BLT salad, four new homemade soups of the day, including Smoked Tomato<br />
and Potato Chowder, and a new Spicy Grilled Shrimp entrée and several new grilled chicken sandwiches and burgers. All new<br />
lunch offerings are designed to be prepared and served quickly and are priced from $5.99–$8.49. Joining the appetizer menu<br />
are Tuscan Shrimp Dip (melted Parmesan, jalapeno Jack and cream cheeses blended with grilled shrimp and sun-dried<br />
tomato) and a Southwest Feast Sampler that combines several of Damon’s most popular appetizers, including: Pulled Pork<br />
Quesadilla, Crispy Onion Straws, Mozzarella Sticks and San Antonio Spring Rolls. A Fish & Tenders Combo, Kids’ Fish and<br />
Fries and Grilled Pork Chop were deleted to make room for the new entries. It has also updated several long-time favorites on<br />
its dinner menu. Its meatloaf ($10.99), offered on Sundays, is now enhanced with peppercorn sauce and stacked on ciabatta<br />
bread. The chain is also offering nightly dinner specials for the first time. They include: ■ Monday: Endless Ribs ($16.49) ■<br />
Tuesday: Open-Face Prime Rib on Ciabatta Bread ($10.99) ■ Wednesday: Barbecued Ribs & Pulled Pork Sampler ($10.99) ■<br />
Thursday: Grilled Shrimp & Pasta ($10.99) ■ Friday: Spicy Grilled Shrimp ($12.99) ■ Saturday: Philly-style Prime Rib with<br />
sautéed onions and melted Provolone cheese ($12.99). (PR Newswire, NRN Daily NewsFax)<br />
Personnel |<br />
Shannon Foust, Chief Executive Officer<br />
Doug Kourie, Chief Financial Officer<br />
Joanna Peterson, Director of Marketing<br />
Theresa Haywood, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
200
Darden Restaurants, Inc.<br />
Headquarters<br />
5900 Lake Ellenor Dr., Orlando, Florida 32809 USA<br />
Tel: (404) 245 4000 Fax: (407) 245 6648<br />
www.darden.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Bahama Breeze<br />
Olive Garden, The<br />
Red Lobster<br />
Smokey Bones BBQ<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 4,419,400 4,110,600 -<br />
Company-owned ($000) 4,419,400 4,110,600 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 1,199 1,152 -<br />
Company-owned 1,199 1,152 -<br />
Franchised - - -<br />
International Sales ($000) 120,000 126,000 -<br />
International Units 37 38 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Formed in mid-1995 by the separation of General Mills, Inc. into two separate companies, Darden Restaurants is the largest<br />
casual-dining company in the U.S. Trade names of the Darden chains include Red Lobster, The Olive Garden, Bahama<br />
Breeze and Smokey Bones BBQ. It is also testing a fresh grill and wine bar called Seasons 52 in Orlando.<br />
Darden intends to develop other casual dining chains. To facilitate this, it is considering acquisition of existing chains in the<br />
15–50 unit size.<br />
Its emerging chain, Smokey Bones BBQ, is a barbecue-sports bar themed operation that offers the ambience of a mountain<br />
cabin. The 8,000-sq.ft. venue’s menu features ribs, chicken and sliced beef and pulled pork sandwiches. Also available is 30–<br />
40 varieties of beer. Prices are similar to those of Olive Garden and Red Lobster. Sporting events are viewed on any of its 35<br />
TVs. At the end of fiscal 2001, the company had nine units open and plans set to take the concept national. Average unit<br />
volumes are reportedly around $2.5 million.<br />
In 1970, Red Lobster, founded in Lakeland, FL, by Bill Darden in 1968, was acquired by General Mills, Inc. The Olive Garden,<br />
an in-house concept, began in 1983. In 1995, General Mills completed a spin off its foodservice holdings into a separate public<br />
company that was named Darden Restaurants, Inc. in honor of the Red Lobster founder. Bahama Breeze debuted in 1996 and<br />
Smokey Bones was developed in 1999.<br />
Expansion Plans |<br />
Darden Restaurants said it acquired three Don Pablo’s restaurant locations and one Hops unit from Avado Brands. The units<br />
will be converted to the Smokey Bones BBQ Sports Bar concept. The Don Pablo’s sites are in Greensboro, NC; Bowie, MD;<br />
and Youngstown, OH. The Hops site is in Columbus, OH. Terms were not revealed. Darden’s other brands are Red Lobster,<br />
Olive Garden and Bahama Breeze. (NRN 3/10/03 p77)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
201
<strong>RISE</strong> COMPANY PROFILE<br />
Smokey Bones BBQ Sports Bar parent Darden Restaurants will open 20–25 more of the barbecue restaurants in the current<br />
fiscal year. In the fiscal year that ended in May, it opened 20 units, for a total count of 34 units in 14 states. A company official<br />
predicted that in eight years, the four-year-old concept would number 250 stores. Its ribs sell well in the Chicago area, and<br />
pulled pork is popular in the South. In New England, chicken is the top barbecue protein. Currently being tested are a chicken<br />
potpie and a light grilled chicken breast with cucumber relish. In addition, it is increasing its variety of fresh vegetables and<br />
adding steaks to the menu. (Nation’s Restaurant News)<br />
Personnel |<br />
Joe Lee, Chairman<br />
Linda Dimopoulos, Chief Financial Officer<br />
Barry Moullet, Director of Purchasing<br />
John Radcliff, <strong>Menu</strong> Development/R&D<br />
Doug Green, Senior Vice President of Operations<br />
James Ingersoll, Vice President of Finance<br />
David Cox, Vice President of Purchasing<br />
Darden Restaurants named Chip Brown vice president of marketing for Bahama Breeze. Previously, Brown was vice president<br />
for Smokey Bones. (NRN Daily NewsFax 12/8/03)<br />
Darden Restaurants appointed Greg Watson vice president of marketing for Smokey Bones. Previously, Watson was vice<br />
president of brand marketing for Olive Garden. (NRN Daily NewsFax 12/8/03)<br />
Darden Restaurants president Richard Rivera resigned. Current chairman and chief executive Joe Lee will assume operating<br />
responsibilities until a permanent replacement is named. (NRN Daily NewsFax 1/7/04; Restaurant Business Daily News<br />
1/8/04)<br />
News & Other |<br />
Several large restaurant companies have been sued by California’s attorney general for failing to warn patrons about mercurylaced<br />
seafood’s potential harm. Brinker International, Darden Restaurants, Landry’s Restaurants and 13 other major chain<br />
operators are the target of lawsuits that claim they violated the state’s Proposition 65 law by failing to warn patrons about<br />
carcinogenic mercury, methyl mercury and related compounds in shark, swordfish and tuna. The lawsuits seek unspecified<br />
civil penalties, court costs and injunctions that bar sales of such fish unless Prop. 65 notification requirements are met. Such<br />
warnings have begun appearing in California grocery stores, which were the target of similar lawsuits earlier this year. A group<br />
of the restaurant chains had requested that the attorney general file suit, deeming it preferable to litigation threatened by two<br />
private groups. Landry’s general counsel predicted that the issue would be resolved within 60 days. (NRN 4/28/03 p1; RB<br />
5/1/03 p12)<br />
Burger King will focus on its flame-broiling cooking method and on offering more healthful menu items, under the direction of<br />
its new chief executive, Brad Blum. He plans to introduce an enhanced salad line and has menu items in development that<br />
contain four grams of fat or less. Blum said he plans to introduce fewer new items than in the past but to launch them<br />
effectively, with market tests and “compelling advertising.” He also is developing strategies to reduce turnover at the restaurant<br />
level and plans to steer the chain’s marketing strategy away from discounting. Blum previously served as president of Darden<br />
Restaurant’s Olive Garden. In related news, the chain recently named Young & Rubicam of New York as the lead ad agency<br />
for its estimated $350 million account. (NRN 4/28/03 p4; NDNF 4/15/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
202
<strong>RISE</strong> COMPANY PROFILE<br />
Emerging barbecue concepts show that a broader take on an old favorite helps maintain consumers’ interest. Nowadays it<br />
seems safer to refer to them as “grill concepts” because many new chains defy traditional notions of barbecue. Given<br />
barbecue’s outdoor origins, it typically has an informal image. A few new chains, like Rib Crib Barbecue (23 units), are<br />
succeeding with the tried and true hickory or mesquite-based barbecue menu, casual-dining format and a down-home<br />
Southern or Western décor. Several concepts, however, have shed the relaxed, checkered-tablecloth image and incorporated<br />
various grilling styles in other service formats. For instance, Chef Waldy Malouf’s Beacon (2 units) is a barbecue-focused, finedining<br />
concept that features primitive grilling methods. It showcases open-pit wood-burning fires amid a stylish ambience of<br />
multi-tiered dining areas, dim lighting, French terra cotta tiling and Mission-style furniture. Checks average $60. Although<br />
casual, Weber Grill (3 units) broke the mold by bringing its famous charcoal kettle grills indoors and creating a comfortable,<br />
simple décor of dark woodwork and cozy booths. (Both concepts feature exhibition kitchens, another trend.) Darden<br />
Restaurants’ Smokey Bones BBQ (17 units) also created a new take on the category’s informal image by showcasing it in a<br />
sports pub atmosphere with St. Louis-style items. Memphis-style barbecue is featured amid a fun Blues music-themed décor<br />
at Red Hot & Blue (36 units). Twists on barbecue fare include new grilling and ethnic styles: Hawaiian barbecue is at the<br />
limited service L&L Hawaiian Barbecue (63 units); Mongolian barbecue is at Genghis Grill (8 units), where diners create their<br />
own stir fry that is prepared on a 650-degree grill in less than a minute; hardwood fire barbecue is 11-unit Whiskey Creek<br />
Steakhouse’s specialty (profiled in this issue); Ted’s Montana Grill (6 units) recently added barbecue bison short ribs to its<br />
menu; and Stonewood Tavern & Grill (10 units) offers specialties prepared in an oak grill. Change is in the air when even a<br />
major chain like Damon’s Grill, famous for its barbecued ribs, announces menu repositioning to include a larger range of grilled<br />
items such as spicy grilled shrimp. The restaurant industry’s barbecue category has targeted consumers’ interest in ethnic and<br />
spicy foods, exhibition cooking, and formats that serve multiple schedules. Diners’ increasingly sophisticated tastes inspire<br />
more mature décor and menus that challenge the stereotypical barbecue image and still draw traffic.<br />
Smokey Bones parent Darden Restaurants will open 20–25 more of the barbecue restaurants in the current fiscal year. In the<br />
fiscal year that ended in May, it opened 20 units, for a total count of 34 outlets in 14 states. A company official predicted that in<br />
eight years, the four-year-old concept will probably number 250 stores. The concept’s protein sales mix varies by region as<br />
well. Ribs sell well in the Chicago area, while in the South pulled pork is popular. In New England, chicken is the top barbecue<br />
protein. Currently being tested are a chicken potpie and a light grilled chicken breast with cucumber relish. In addition, it is<br />
increasing its variety of fresh vegetables and adding steaks to the menu. (NRN 5/12/03 p60)<br />
Seasons 52's servers can use hand-held terminals to look up detailed ingredient and nutritional information for customers. The<br />
Darden Restaurants concept, specializing in gourmet-quality dishes that are low in calories, has hired highly regarded<br />
nutritionist Pamela Smith to develop its menu with executive chef Cliff Pleau and senior development chef Toni Robertson.<br />
(NRN 5/26/03 p8)<br />
Bahama Breeze’s new prototype reduces the size of the patio and does away with an open-air bar. The 32-unit chain of<br />
Caribbean-themed restaurants is owned by Darden Restaurants. The prototype does away with live music outdoors, which<br />
was a problem in many municipalities, where such noise is prohibited in neighborhoods. In other cases, some municipalities<br />
will not allow an outside bar. Company chief executive Joe Lee recently told analysts that the company is not getting the<br />
returns on Bahama Breeze that it wants in order to continue growing the brand into a big chain. The company acknowledged<br />
that same-store sales for the seven-year-old concept have dropped recently. (RB 7/15/03 p12)<br />
Darden Restaurants bought five Rio Bravo restaurants from Chevys Inc. It plans to convert three of the sites—located in<br />
Grand Rapids, MI; Springfield, MO; and Morrow, GA—into Smokey Bones Barbeque restaurants. A unit in Strongsville, OH,<br />
will become a Red Lobster and one in Dunwoody, GA, will house an Olive Garden. Over the next 12 months, Darden said it<br />
plans to invest more than $2.5 million for renovations in each location and it will hire 100 employees for each restaurant.<br />
(NDNF 8/1/03)<br />
Allied Domecq Quick Service Restaurants (ADQSR) has restructured its corporate staff and named a new executive<br />
leadership team. The restructuring eliminated about 105 jobs, leaving the franchisor with about 1,235 employees. The move<br />
comes as ADQSR’s Dunkin’ Donuts is preparing for the October debut of espresso beverages at its more than 5,000 doughnut<br />
shops. The new line calls for training nearly 90,000 employees and spending about $40 million for new equipment. The<br />
restructuring comes about eight months after Jon Luther joined Allied Domecq as chief executive. He previously was president<br />
of Popeyes Chicken & Biscuits. The new leadership team includes RoJean DeChantal, people services officer; Will Kussell,<br />
chief U.S. operating officer; Paul Leech, chief operating officer, international; Joe Scafido, menu and concept officer; and<br />
Jennie Wilson, chief financial officer. In addition, the company has hired Gary Heckel, a former Darden executive, to handle<br />
concept development. ADQSR’s expansion plan for 2004 calls for 1,000 new points of sale in the U.S. and more than 400<br />
international outlets. (NRN 8/25/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
203
<strong>RISE</strong> COMPANY PROFILE<br />
Bahama Breeze has begun testing a new menu, about half of which is made up of about half new items such as more fresh<br />
fish, oak-fired half chicken and a revamped paella. Prices are about the same as on the former menu. The company would not<br />
speculate as to whether the menu will make it beyond the test stage. In addition, the Darden Restaurants-owned chain is<br />
expanding its lunch test into South Florida, Chicago and Orlando. Thus far, guest feedback has been strong, according to the<br />
company. (RB 8/15/03 p16)<br />
Darden Restaurants said Enda Morris resigned as president of Red Lobster. She had been promoted to the position in April<br />
2002. Darden president and chief operating officer Dick Rivera assumed the post. (NDNF 9/26/03)<br />
Darden Restaurants for its second quarter ended November 23, reported that net earnings dropped 16.6% to $31.3 million<br />
from $37.5 million for the same period last year. (NRN Daily NewsFax 12/22/03)<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
204
Dave & Buster's<br />
Headquarters<br />
2481 Manana, Dallas, Texas 75220 USA<br />
Tel: (214) 357 9588 Fax: (214) 350 0941<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 180,000 181,358 332,000<br />
Company-owned ($000) 180,000 181,358 332,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 29 29 27<br />
Company-owned 29 29 27<br />
Franchised - - -<br />
International Sales ($000) 15,000 12,000 25,000<br />
International Units 3 2 2<br />
Average Sales/Unit ($000) 6,400 6,500 12,296<br />
Concept Positioning |<br />
Dave & Buster’s combine entertainment attractions such as pocket billiards, shuffleboard, interactive simulators, virtual reality<br />
systems and carnival-style games with full-service dining. Open from early lunch to late night, the units are billed as adult<br />
playgrounds and attract a young, upscale customer. (A typical customer is a 30-something male that on average stays about<br />
two hours, spending some $17 on food, beverages and games and visits about 10 times per year.) Currently, the company<br />
receives about 50% of its revenues from foodservice.<br />
Units are very large, ranging from 33,000-70,000 sq.ft. The dining rooms are built around each of its various attractions. The<br />
Grand Dining Room, for example, has a turn-of-the century style feeling with black and white tiled floors, stained glass light<br />
fixtures, ceiling fans and wrought iron railings. The Viewpoint Bar and dining area is raised to provide an overview of and easy<br />
access to its surrounding entertainment areas. The four-sided bar is 21 ft long on each side and some have 20-screen video<br />
dome and table top games. Units also have sit-down food and beverage service in the entertainment areas as well as<br />
shuffleboard tables and a game area filled with more than 250 interactive and electronic games and simulators.<br />
Entertainment features include pocket billiard tables. In 1997, it installed a Power Card system based on the debit card<br />
concept to make it easier for patrons to play games as well as eliminate the necessity for coin-operated equipment.<br />
The company has also developed a smaller 30,000–40,000 sq. ft. prototype that it believes can be used in as many as 150<br />
secondary markets. The first unit of this design opened in Columbus, OH, in 1998.<br />
The first Dave & Buster’s opened in 1982. In 1995, the company went public. In addition to its approximately 32 U.S. units, it<br />
currently has development agreements for the Pacific Rim, Canada, the Middle East and Mexico.<br />
Current management includes Dave Corriveau, co-chairman, president and co-chief executive officer and Buster Corley, cochairman,<br />
co-chief executive officer and chief operating officer; Sterlin R. Smith, senior vice president operations; and W.C.<br />
Hammett, senior vice president chief financial officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
205
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Broad-based 80-item menu of American favorites. Includes gourmet pizzas such as taco & Thai chicken, sandwiches &<br />
burgers ranging from a classic club, blackened chicken & Philly cheese steak to Dave’s Ultimate Cheese Burger, steaks such<br />
as Mesquite Peppered Rib Eye, ribs, seafood, chicken, pastas including Blackened Chicken Pasta, appetizers, soups, salads<br />
& desserts. Full-service bars are available. <strong>Menu</strong> Prices: $5.95–$17.95<br />
<strong>Menu</strong> Development |<br />
Bar menus are often designed to save consumers time while offerings operators an opportunity to capture additional sales in<br />
off-peak and crowded hours. Chevys has made its entire menu available at the bar in a move to cut service time and notes<br />
that bar patrons tend to order equally from the appetizer and entrée sections. Proving most popular for bar service are its<br />
Mesquite Grilled Fajitas and the Fresh Mex Sampler, which combines spicy wings, tamales, chicken nachos and quesadillas.<br />
Kimpton Group has also recognized the appeal of bar menus and is now utilizing lounge menus of about 10 items in several of<br />
its newer hotels, rather than offering a more complete restaurant menu. The menus are often themed to a specific concept.<br />
Helix in Washington, DC, features retro-American foods such as Spicy Corn Dogs with Fairground Mustard Sauce, while<br />
Topaz, also in Washington, DC, emphasizes Asian fare such as Pork and Cabbage Spring Rolls with Sweet Chili Sauce and a<br />
Stir Fry of Scallops with Gingered Grits. Elsewhere, the McCormick & Schmick’s in Los Angeles reconfigured its bar menu to<br />
boost Happy Hour sales. It now serves a collection of $1.95 appetizers from 4p.m. to 7 p.m. Offerings are designed to<br />
introduce diners to prime seafood varieties, including Alaska halibut prepared on skewers and served as fish and chips and<br />
Chignik salmon, which has been prepared on skewers and as ceviche. The menu proved so popular, the restaurant ultimately<br />
decided to extend service, offering it again from 9 p.m. to midnight, essentially creating a second Happy Hour period. Other<br />
chains have also gotten into the act of bar service. Examples include: ■ Ultimate Fondue—bread bowl filled with crab meat,<br />
crawfish, shrimp and Cheddar cheese, Red Lobster ■ Blackened Chicken with Avocado Quesadillas, Dave & Buster’s.<br />
(Restaurant Business)<br />
Dave and Buster’s introduced Chicken Enchilada Dip. It combines grilled chicken, corn tortillas, poblano peppers and cheese.<br />
(Nation’s Restaurant News 11/24/03 p38)<br />
Dave & Buster’s enhanced its menu with three new sandwiches: Tempura Fish Sandwich, Southwest Grilled Chicken<br />
Sandwich and Grilled Mediterranean Sandwich, which features grilled chicken, roasted peppers and herb cheese on a rustic<br />
roll. Also new is a Grilled Wrapper with Shrimp consisting of a grilled tortilla filled with sautéed shrimp, rice, poblano peppers<br />
and cheese. (Nation’s Restaurant News 11/24/03 p38)<br />
Dave & Buster’s added Loaded Mashed Potatoes to its side offerings. The potatoes are enhanced with butter, sour cream,<br />
chives and sharp Cheddar and bacon. (Nation’s Restaurant News 11/24/03 p38)<br />
Pizzas are increasingly carrying a broad range of ingredients, creating pies that range from traditional basics to innovative<br />
signatures. At Godfather’s, offerings range from simple Humble Pie with sausage, peppers and onions to the more upscale<br />
Chicken Artichoke pizza with white garlic sauce, artichokes and red onions, which is similar to the designer pizzas popularized<br />
by chef Wolfgang Puck. Bahama Breeze has a Four Tomato Pizza that boasts vine-ripened Roma, yellow pear, grape and<br />
sun-dried tomatoes, and Red Lobster has a thin-crust Lobster pizza topped with basil. Specialty cheeses are also becoming<br />
more common. Dave & Buster’s has a Shiitake Boursin pizza and Napa Valley Grill in Chicago offers a Brie and Duck Confit<br />
pie on a seasonal basis. (Nation’s Restaurant News 12/1/03 p35)<br />
International Activities |<br />
Dave & Buster’s will buy its Canadian licensee Funtime Hospitality Corp. for about $3.6 million and assumption of some<br />
liabilities. Funtime operates one of the entertainment-restaurant complexes in the Toronto suburb of Concord and had rights to<br />
develop other units in Canada. The deal, scheduled to close in October, still must be approved by Funtime’s shareholders.<br />
(NDNF 7/31/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
206
Personnel |<br />
David Corriveau, Chairman<br />
W.C. Hammett, Chief Financial Officer<br />
Cory Haynes, Vice President of Operations<br />
Marissa Miller, Vice President of Marketing<br />
Oona Settlmbre, Chef<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Dave & Buster’s co-founders are dividing their co-chief executive duties, according to a letter that they wrote to shareholders.<br />
A major shareholder had been pressing for changes. Buster Corley will now serve as chief executive and Dave Corriveau as<br />
president. Corley will continue to serve as chief operating officer. The company also appointed Peter Edison, a member of the<br />
board since 1995, as chairman. In addition, the letter said the company expects to cut expenses by $10–$11 million a year by<br />
reducing staff at the corporate level as well as in restaurants, reviewing purchasing, and improving staff scheduling for greater<br />
efficiencies. In related news, Dave & Buster’s reported a net income drop of 32% on a 4.8% decrease in revenues for the<br />
fourth quarter that ended February 2. Net income was $3.2 million, compared with $4.7 million in the previous fourth quarter.<br />
Total revenues for the quarter were $99.8 million. Same-store sales decreased 4.8%. (NDNF 4/9/03 & 4/11/03)<br />
A Dave & Buster’s shareholder has dropped its demand that the company be sold. Renaissance Capital Group Inc., an<br />
investment management group based in Dallas and owner of more than 4% of Dave & Buster’s shares, agreed to drop a<br />
proposal that the company put itself up for sale in exchange for management’s pledge to cut costs, retain a consultant and<br />
reduce some salaries if income thresholds are not met. (NRN 5/26/03 p8)<br />
Dave & Buster's reported net income for the second quarter ended August 3 rose to $88.3 million. Despite a 4.3% decline in<br />
revenues, the company also announced net earnings of $1.5 million, a 6.1% increase over the same quarter last year. (NRN<br />
Daily NewsFax 9/8/03)<br />
Dave & Buster’s reported same-store sales decreased 6.3% for the second quarter ended August 3. (Nation’s Restaurant<br />
News 9/22/03 p16)<br />
Dave & Busters completed a $3.6 million deal to buy the assets of Canadian franchisee Funtime Hospitality Corp. of Toronto.<br />
The deal will end Funtime’s rights to develop units in Canada. (NRN Daily NewsFax 10/9/03)<br />
Dave & Busters for the quarter ended November 12, reported that same-store sales fell 3%. (Restaurant Business Daily News<br />
12/12/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
207
Daylight Donut Shops<br />
Headquarters<br />
11707 E. 11 St., Tulsa, Oklahoma 74128 USA<br />
Tel: (918) 438 0800 Fax: (918) 438 0804<br />
Ownership: Private<br />
Segment: Limited Service Donut<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 220,000 225,000 220,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 220,000 225,000 220,000<br />
U.S. Number of Units 535 535 531<br />
Company-owned - - -<br />
Franchised 535 535 531<br />
International Sales ($000) 40,000 40,000 40,000<br />
International Units 72 70 69<br />
Average Sales/Unit ($000) 410 420 -<br />
Concept Positioning |<br />
Daylight Donut Shops are quick service restaurants that specialize in donuts and other bakery products. Units tend to be small<br />
with mostly counter-type seating. Doughnuts and other baked goods are made fresh each day on-premise from proprietary<br />
mixes.<br />
Franchisee arrangements are based on licensing agreements with charges for supplies only; there are no fees or royalties.<br />
The company dates back to 1954 with its founding by T. and L. Day.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: wide variety of doughnuts. Also menus other baked goods such as cinnamon rolls & brownies. Beverages<br />
available.<br />
Personnel |<br />
John Bond, Chief Executive Officer<br />
Jimmy Keeter, Chief Financial Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
208
Del Frisco's/Sullivan's<br />
Headquarters<br />
224 E. Douglas Suite 700, Wichita, Kansas 67202 USA<br />
Tel: (316) 264 8899 Fax: (316) 264 5988<br />
www.lonestarsteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Steak - Fine Dining<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 122,800 117,941 101,339<br />
Company-owned ($000) 115,000 110,379 94,190<br />
Franchised ($000) 7,800 7,562 7,149<br />
U.S. Number of Units 21 21 21<br />
Company-owned 20 20 20<br />
Franchised 1 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,600 5,616 4,709<br />
Concept Positioning |<br />
Lone Star Steakhouse & Saloon, Inc. owns and operates six-unit Del Frisco’s Double Eagle Steak House and 15-unit<br />
Sullivan’s Steakhouse. The two upscale chains are open for dinner only and have check averages more than double those of<br />
its flagship Lone Star brand.<br />
Del Frisco’s units are large, averaging 8,000–12,000 sq. ft. with seating for 300–360 persons. The New York unit is much<br />
larger, at about 16,500 sq. ft. (it also is open for lunch), but most new units will be built around a 7,000–8,000 sq. ft. prototype<br />
with seating for 175–200. The ambiance suggests elegance and old ways associated with turn-of-the-century dining including<br />
dark woods, fabric walls, fireplaces, separate dining rooms and soft background music. A separate bar area provides space for<br />
those waiting for tables.<br />
Named after legendary boxer, John L. Sullivan, Sullivan’s are 8,000–12,000 sq. ft. with seating for 175–200 in its Chicagostyle<br />
1940's theme, although future units will be approximately 8,000–9,000 sq. ft. Several units have a separate bar area<br />
called “Ringside” that features jazz each night. Dark wood paneling, carpeted floors, white tablecloths and warm lighting add to<br />
its feel as does its open kitchen.<br />
Sullivan’s was developed by parent Lone Star Steakhouse. Its first units debuted in 1996 in Austin, TX, and Indianapolis,<br />
IN.Del Frisco’s Double Eagle Steak House, Dallas, was acquired in 1995. Named for one of its founders, Dale Wamstad<br />
(known as Del Frisco), he and Dee Lincoln, the other founder, continue to manage the chain for Lone Star. Key management<br />
includes Mark Madmansky, director of upscale restaurants.<br />
<strong>Menu</strong> Positioning |<br />
Del Frisco’s—USDA prime-graded steaks, chops & seafood. Full liquor service; over 300 high quality wines (some 38% of<br />
sales). Check Averages: $86. Sullivan’s—aged steaks, chops & seafood. Full liquor service (about 40% of sales). Check<br />
Averages: $66<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
209
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Lone Star Steakhouse & Saloon Inc. for the third quarter ended September 9, reported net income declined 55% to $3.7<br />
million compared to $8.2 million for the same quarter a year ago. Same-store sales decreased 1.2% at domestic Lone Star<br />
units but grew 9.6% at Sullivan’s Steakhouse and 17.9% at Del Frisco’s Double Eagle Steak House. (NRN Daily NewsFax<br />
10/1/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
210
Del Taco<br />
Headquarters<br />
25521 Commercentre, Lake Forest, California 92630 USA<br />
Tel: (949) 462 7320 Fax: (949) 462 7444<br />
www.deltaco.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 388,391 368,000 319,000<br />
Company-owned ($000) 255,365 252,000 222,000<br />
Franchised ($000) 133,026 116,000 97,000<br />
U.S. Number of Units 417 392 372<br />
Company-owned 258 251 244<br />
Franchised 159 141 128<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,024 1,000 909<br />
Concept Positioning |<br />
Del Taco restaurants are open for breakfast, lunch, and dinner seven days a week. They feature 24-hour drive-through service<br />
as well as conventional sit down and carry out during daytime and evening hours. The primary customer base consists of<br />
people between the ages of 16 and 49. Food is prepared to order with tacos, burritos and burgers made with fresh cooked,<br />
USDA-inspected 100% ground beef. Likewise, 100% cholesterol-free vegetable oil is used for frying; its beans are made from<br />
scratch without lard, its chicken is freshly grilled from scratch, and its cheddar cheese is grated fresh from 40 pound blocks.<br />
The second largest U.S. fast-food Mexican chain, Del Taco’s current expansion focus is in the West and Southeast. In<br />
addition, its menu positioning centers on the concept of value and large portions and has been effective by attaining 13<br />
straight years of same store sales increases.<br />
Units seat between 50 and 100 customers. All but five have drive-through windows. The decor includes an abundant use of<br />
red, green and yellow colors to convey a Mexican feeling that is fun, festive and full of celebration.<br />
Del Taco was founded in 1964. In the 1970's and 1980's development of its brand was limited to California, but the company<br />
reacquired the out-of-state rights in mid-1992. In April 1993, Del Taco filed for reorganization under Chapter 11 and emerged<br />
eight months later under the direction of company chairman and chief executive officer Kevin K. Moriarty.<br />
<strong>Menu</strong> Positioning |<br />
Mexican & American entrees including tacos, burritos including a 1-lb Macho Burrito, quesadillas, tostadas, salads,<br />
hamburgers, fries & shakes. Specialties include Works Burritos (8 layers) & Spicy Jack Quesadillas. Breakfast offers egg<br />
burritos & egg quesadillas. No alcoholic beverages served. Check Averages: $4.15. <strong>Menu</strong> Prices: 39¢–$3.29.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
211
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Del Taco is promoting its Chicken Spicy Jack Quesadillas. The item is described as freshly grilled chicken and melted Pepper<br />
Jack cheese in a grilled flour tortilla. (NRN Daily NewsFax, Company Web Site)<br />
Del Taco is promoting several breakfast options, including a 59¢ Breakfast Burrito and breakfast meals ranging in price from<br />
$2.99–$4.59. They include a Bacon and Egg Burrito, Egg & Cheese Burrito, Steak & Egg Burrito or Bacon & Egg quesadilla<br />
with a side of hashbrown sticks and three drink choices. (NRN Daily NewsFax)<br />
Del Taco introduced a taqueria-style Taco Del Carbon. Priced at $1.39, it features steak or chicken, diced onions, chopped<br />
cilantro and Anaheim chile sauce in a corn tortilla. The item was based on “al carbon” tacos that feature charcoal-cooked<br />
meats. (NRN Daily NewsFax, 8/5/03)<br />
Del Taco recently began more aggressively promoting its breakfast daypart. The chain has long served breakfast without<br />
promoting it. Offerings range from a 59¢ Breakfast Burrito to a Macho Bacon & Egg Burrito that weighs more than one pound.<br />
Other core offerings are a Steak & Egg Burrito, Egg & Cheese Burrito and Bacon & Egg Quesadilla. (Restaurant Business<br />
9/15/03 p32)<br />
Personnel |<br />
C. Ronald Petty, President<br />
Robert Terrano, Chief Financial Officer<br />
Don Stoops, Senior Vice President of Operations<br />
Melinda Bustos, <strong>Menu</strong> Development/R&D<br />
Kevin Moriarty, Chairman<br />
C. Ronald Petty, President<br />
Robert Terrano, Chief Financial Officer<br />
James Stoops, Senior Vice President of Operations<br />
Janet Erickson, Vice President of Purchasing<br />
Tim Hardbardt, Vice President of Marketing<br />
Joe Senger, Director of Marketing<br />
News & Other |<br />
Del Taco is rolling out a taqueria-style “Taco Del Carbon” systemwide. Selling for $1.39, the new item features steak or<br />
chicken, diced onion, chopped cilantro and Anaheim chile sauce in a corn tortilla. It is based on “al carbon” tacos featuring<br />
charcoal-cooked meats. (NDNF 8/5/03)<br />
RTM Restaurant Group is halting all co-branding initiatives to focus on its Arby’s core brand. Arby’s largest franchisee with 789<br />
units in 22 states, RTM is opting for the single-brand approach due in part to Arby’s expanded menu strategy with its premium<br />
MarketFresh deli sandwich line and the new Bistro line of sandwiches now in test. Such options eliminate customers’ veto<br />
vote, according to RTM management, since Arby’s isn’t just a place for roast beef anymore. The company recently halted its<br />
eight-year-old experiment with dual-branding Mrs. Winner’s and Del Taco. It had planned to dual-brand the entire Mrs.<br />
Winner’s chain. Remaining co-branded stores are four Arby’s/Mrs. Winner’s as well as 16 Arby’s-Sbarro units and 43<br />
Arby’s/T.J. Cinnamons in several markets. Those units still in operation will be evaluated based on revenues and profit on an<br />
individual basis. The dual Arby’s/Mrs. Winner’s are in RTM’s home base of Atlanta and most of the Arby’s/Sbarro units are in<br />
Minnesota. Separately, RTM plans to open at least 35 new Arby’s annually through 2009 and to remodel 15–20 restaurants<br />
per year. (NRN 7/14/03 p1)<br />
Del Taco Inc. partnered with Sony Entertainment to sell their merchandise in its restaurants. The chains’ units will feature<br />
animated DVDs priced at $15.95. Complementary toys from the animated movies will be included in the chain’s kids' meals<br />
starting in December. (NRN Daily NewsFax 11/18/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
212
Denny's<br />
Headquarters<br />
203 E. Main St., Spartanburg, South Carolina 29319 USA<br />
Tel: (864) 597 8000 Fax: (864) 597 7532<br />
www.dennys.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,130,000 2,210,000 2,164,000<br />
Company-owned ($000) 854,000 942,000 1,081,000<br />
Franchised ($000) 1,276,000 1,268,000 1,083,000<br />
U.S. Number of Units 1,612 1,677 1,751<br />
Company-owned 566 611 726<br />
Franchised 1,046 1,066 1,025<br />
International Sales ($000) 88,000 82,000 64,000<br />
International Units 64 72 71<br />
Average Sales/Unit ($000) 1,290 1,279 1,488<br />
Concept Positioning |<br />
Denny's Restaurants, the nation's largest full-service chain of family style restaurants, are open 24 hours a day, seven days a<br />
week. The restaurants have uniform menus, with some regional and seasonal variations, offering breakfast, lunch and dinner<br />
as well as late-night items. Sales are fairly divided over four day parts, although the breakfast menu (served all day) is its core<br />
business and accounts for the majority of sales.<br />
The typical Denny's, generally freestanding, averages 4,750 sq. ft. with seating for 140 customers. The chain prefers to locate<br />
at intersections with office, commercial, and residential traffic. It is also placing increased emphasis on its bakeshop pie<br />
business, for which sales have exceeded expectations. Express service menus and checkout service are being tested.<br />
Continuing its remodeling and refurbishing program, plans call for company-owned units to be remodeled on a eight-year cycle<br />
once the current program is completed. This re-imaging includes an updated exterior look as well as new signage, interior<br />
layout, uniforms and menu offerings.<br />
In 1998, it developed the “Denny’s Classic Diner” concept, featuring a 50's-style retro atmosphere in a stainless steel, modular<br />
facility with neon lighting and a checkerboard tiled floor. The Classic Diner concept has new uniforms, a tailored menu and a<br />
working jukebox to add to the atmosphere. The units have produced above average sales compared to traditional Denny’s.<br />
Signature Classic Diner menu items include: double-decker hamburger, chili fries, open-faced sandwiches and banana splits.<br />
The company has also developed a remodeling plan for existing units to incorporate many features of the Classic Diner<br />
concept.<br />
The company’s current focus is to become a more franchised-based operation. To meet its objective, Denny’ s is selling<br />
company-owned units to franchisees.<br />
In 1953, Harold Butler opened Danny's Donuts, gradually adding to the menu until the store became a coffee shop, went<br />
public and merged with Winchell's Donut Houses. Denny's was adopted as the corporate name in 1972. It was acquired by<br />
Advantica in 1987, and took on the Denny’s Corp. name in 2002 when it split from Advantica’s Coco’s and Carrows concepts.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
213
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature Grand Value entree specials offered at all meal periods; includes $2.99 original Grand Slam breakfastBroad-based<br />
menu ranges from soups, burgers & sandwiches to budget-priced entrees as well as all-day breakfast.Added line of Signature<br />
Skillets for dinner including chicken or beef pot pie & Mandarin glazed salmon or vegetables.The menu is also putting<br />
emphasis on themed products such as All Star Slams, Signature Skillets and Major League Burgers.Approximately 33% of<br />
units serve alcoholic beverages. <strong>Menu</strong> Prices: $2.99–$8.99. Check Averages: $6.45.<br />
<strong>Menu</strong> Development |<br />
Denny’s plans to add more regional dishes to appeal to local diners. The chain’s restaurants in the western part of the U.S. will<br />
reportedly add foods that appeal to Hispanics. (Associated Press)<br />
Denny’s launched a limited-time BBQ Days promotion. Featured offerings include BBQ St. Louis-style Ribs, a BBQ Beef<br />
Sandwich and Smoky Ranch Chicken Salad. The chain is also offering a BBQ Chicken Deluxe entrée for $6.99. The meal<br />
includes two 5-oz. grilled chicken breasts, baked beans, cole slaw and french fries. (NRN Daily NewsFax)<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Denny’s is currently reworking its Turkey Dinner to simplify the flavors and make them more reflective of home-cooking. The<br />
former version had a blend of several flavors that were deemed unnecessary. The turkey will be served with a newly<br />
formulated sage stuffing and mashed potatoes that are now enriched with extra cream, milk and butter. (Chain Leader, 6/03,<br />
p39)<br />
Denny’s rolled out Complete Breakfasts—a collection of dishes featuring generous portions. Available through October 20 and<br />
priced at $4.99, offerings include: ■ Smoked Sausage Breakfast—Polish-style sausage, hash browns, two eggs and three<br />
pancakes ■ Country-Fried Steak and Biscuits Breakfast—breaded steak, gravy, three pancakes and two eggs ■ Denny’s Meat<br />
Lovers Breakfast—grilled honey ham, bacon, sausage, three pancakes, two eggs and hash browns. (NRN Daily NewsFax,<br />
7/29/03)<br />
Technology |<br />
Denny’s is launching wireless Internet access at some stores across the United States and Canada, according to wireless<br />
provider Cafe.Com of Santa Monica, CA. The company said it would provide the service at 40 Denny’s from California to<br />
Florida. (NDNF 12/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
214
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Denny’s rolled out a limited-time line of “generously” portioned breakfasts that will be offered through October 20. Selling for<br />
$4.99, complete breakfasts are the Smoked Sausage Breakfast, featuring Polish-style sausage, hash browns, two eggs and<br />
three pancakes; the Country-Fried Steak and Biscuits Breakfast, with breaded steak, gravy, three pancakes and two eggs; and<br />
Denny’s Meat Lovers Breakfast, with grilled honey ham, bacon and sausage, three pancakes, two eggs and hash browns.<br />
(NDNF 7/29/03)<br />
Denny's announced that same-store sales for company-owned stores fell 0.2% for the four weeks ended August 20. While<br />
guest counts fell 5.2%, the chain's guest check average rose 4.9%. (NRN Daily NewsFax 9/8/03)<br />
Denny’s Corp. reported same-store sales for company-owned restaurants fell 0.6% in the four-week period ended August 20.<br />
(Nation’s Restaurant News 9/15/03 p12)<br />
Denny’s Corp. for the third quarter ended September 24, reported same-store sales at company-owned restaurants declined<br />
1.2% compared to the same quarter a year ago. (NRN Daily NewsFax 10/6/03)<br />
Denny’s for the third quarter ended September 24, reported revenues decreased 3.4% to $238.4 million compared to the same<br />
quarter a year ago. Same-store sales dropped 1.2% at company-owned units and 1.7% at franchised units. (NRN Daily<br />
NewsFax 10/30/03, RestaurantBiz.com 10/29/03)<br />
Denny’s Corp. for the third quarter ended September 24, reported revenues decreased 3.4% to $238.4 million compared to the<br />
same quarter last year. Same-store sales decreased 1.2% at company-owned restaurants and 1.7% at franchised units.<br />
(Nation’s Restaurant News 11/10/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
215
Diedrich/Gloria Jean's Coffee<br />
Headquarters<br />
2144 Michelson Dr., Irvine, California 92612 USA<br />
Tel: (949) 260 1600 Fax: (949) 260 1610<br />
www.gloriajeans.com, www.diedrich.com<br />
Ownership: Public<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 100,000 120,000 131,000<br />
Company-owned ($000) 35,000 45,000 50,000<br />
Franchised ($000) 65,000 75,000 81,000<br />
U.S. Number of Units 228 330 333<br />
Company-owned 62 87 98<br />
Franchised 166 243 235<br />
International Sales ($000) 40,000 20,000 20,000<br />
International Units 178 100 50<br />
Average Sales/Unit ($000) 360 355 510<br />
Concept Positioning |<br />
Diedrich/Gloria Jean’s Coffee is the second-largest retail specialty coffee chain and operates under three different brand<br />
names: its flagship Diedrich Coffee, Coffee People and Gloria Jean’s.<br />
Diedrich Coffeehouses are located in densely populated urban areas, generally in strip malls or near popular neighborhood<br />
centers. Hours vary depending on the unit’s location but most are open 6 a.m.–11 p.m. Monday through Saturday for<br />
residential sites, and 6 a.m.–5 p.m. Monday through Friday for commercial locations. The company currently has units ranging<br />
in size from 1,200 to 2,000 sq.ft., some with additional outside patio seating. Units are designed to encourage guests to linger<br />
with others or alone and often have local entertainment on weekends to further emphasize its neighborhood atmosphere.<br />
Ambiance is created through the use of natural woods, soft color schemes and warm lighting.<br />
Much of the future growth will be through franchising in its Southern California core market.<br />
Gloria Jean’s is the largest retailer in the mall coffee store segment, with 278 stores currently in its system. These outlets<br />
feature a full range of coffee beans, beverages, teas and food as well as related gifts, supplies, equipment and accessories.<br />
The company does not plan to convert these units into the Diedrich brand but rather will continue to operate and strengthen<br />
the brand.<br />
Diedrich Coffee was created in 1972 by Carl Diedrich but the family’s ties to the coffee business date back to 1916 when<br />
Diedrich’s mother, Charlotte, inherited a Costa Rican coffee plantation. In September 1996, the company went public. In<br />
March 1999, it agreed to acquire Coffee People. The first Coffee People store was opened in 1983. It went public in<br />
September 1996 and traded under the symbol MOKA. In mid-1997, Coffee People acquired 15 Coffee Plantation stores in the<br />
Phoenix and Tucson, AZ, markets from Second Cup Ltd., Canada’s leading specialty coffee company, for $8.2 million and in<br />
November signed an agreement with Second Cup Ltd. to merge its U.S. subsidiary, Gloria Jeans, into Coffee People. Second<br />
Cup Ltd. owned 69% of Coffee People’s stock. Following the close of the Coffee People/Diedrich deal, Second Cup had about<br />
an 8.5% stake in the new company and its president and chief executive officer was appointed to a seat on Diedrich’s board of<br />
directors.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
216
<strong>RISE</strong> COMPANY PROFILE<br />
Current management includes Matthew C. McGuinness, chief financial officer; Pam Britton, chief operating officer; Carl Mount,<br />
Vice President of Manufacturing & Distribution; Michael Zorehkey, Vice President of Franchising & Real Estate. Martin<br />
Diedrich, founder Carl Diedrich’s son, serves as chief coffee officer.<br />
<strong>Menu</strong> Positioning |<br />
Diedrich Coffee: freshly roasted & brewed coffees; Italian-style drinks such as espresso, cappuccino & cafe latte; frozen<br />
specialties including iced mocha; teas & hot chocolate. Also menus line of coffee ice cream for use in shakes & parfaits as well<br />
as bagels, croissants, pastries & cakes.<br />
Franchise Activity |<br />
Diedrich Coffee suspended franchising to evaluate new initiatives on making the franchises more attractive to prospective<br />
franchisees. (RestaurantBiz.com 10/02/03)<br />
Personnel |<br />
Martin Lynch, Chief Financial Officer<br />
Paul Heeschen, Chairman<br />
Pamela Britton, Chief Operating Officer<br />
Steve Leach, Director of Purchasing<br />
Diane Hays-Hoag, Vice President of Marketing<br />
Linda Eldridge, Vice President of Marketing<br />
Carl Mount, Vice President of Purchasing<br />
Diedrich Coffee promoted Matt McGuinness to executive vice president of development. Previously, McGuinness was chief<br />
financial officer. (NRN Daily NewsFax 10/10/03)<br />
Diedrich Coffee named Martin Lynch executive vice president and chief financial officer. (NRN Daily NewsFax 10/10/03)<br />
News & Other |<br />
Diedrich Coffee in the fiscal year ended July 2, reported same-store sales decreased 4.6%. (RestaurantBiz.com 10/02/03)<br />
Gloria Jean’s Coffees has rolled out a branded coffee vending program. Three coffees have been specifically formulated to be<br />
used in state-of-the-art hot beverage vending machines. Also available from Gloria Jean’s will be “flavor mix-ins” such as<br />
cocoa and vanilla and “product mix-ins” that allow customers to create cappuccinos, mochas and lattes. (AM 11/03 p4; VT<br />
11/03 p8; FIR 12/1/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
217
Domino's Pizza<br />
Headquarters<br />
30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48106-0997 USA<br />
Tel: (734) 930 3030 Fax: (734) 668 1946<br />
www.dominos.com<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,915,000 2,817,000 2,647,220<br />
Company-owned ($000) 340,000 320,000 300,000<br />
Franchised ($000) 2,575,000 2,497,000 2,347,220<br />
U.S. Number of Units 4,811 4,813 4,818<br />
Company-owned 584 519 626<br />
Franchised 4,227 4,294 4,192<br />
International Sales ($000) 1,040,000 968,000 896,254<br />
International Units 2,327 2,259 2,159<br />
Average Sales/Unit ($000) 605 582 479<br />
Concept Positioning |<br />
Domino's Pizza is the second-largest pizza chain in the country. Home delivery accounts for 85–90% of total sales. Stores are<br />
generally open from 4:30 p.m. until 11 p.m., catering to a primary customer base between the ages of 18 and 44. They<br />
typically occupy 1,200 sq. ft., offer no seating and are designed to be inviting and customer friendly.<br />
Some 15–20 distribution centers across the country prepare pizza components from dough to condiments. The commissaries<br />
are wholly owned and provide all food ingredients and equipment necessary to operate a store.<br />
The chain was founded in Ypsilanti, MI, in 1960, by Tom Monaghan; the name Domino's Pizza was first used in 1965.<br />
Franchising began two years later. Domino's Pizza International, Inc., formed in 1985, manages expansion abroad. In 1998,<br />
Monaghan announced his retirement as well as intent to sell the chain. A significant portion of his holdings were acquired by<br />
Bain Capital, Inc., one of the nation’s leading private equity investment firms. Terms were not disclosed.<br />
<strong>Menu</strong> Positioning |<br />
Traditional hand-tossed pizza in 12- 14- & 16-inch sizes; 11 toppings available. Also menus deep dish & extra crispy thin crust<br />
pizzas, double cheesy bread, CinnaStix bread sticks & buffalo wings. Nonalcoholic beverages only.<br />
<strong>Menu</strong> Development |<br />
Wendy’s plans to launch chicken strips later this year. According to comments from CEO Jack Schuessler in a conference call,<br />
the item will be added in the second half of 2003. Boneless chicken strips are already popular items at Popeyes, Domino’s,<br />
Hardee’s, KFC and Papa John’s. (Restaurant Business Daily News, 6/9/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
218
<strong>RISE</strong> COMPANY PROFILE<br />
Domino’s launched a new Philly Cheese Steak Pizza as a limited-time offer through November 2. The pie, Domino’s first new<br />
pizza in over three years, is based on a Philadelphia-style cheese steak sandwich. It features a traditional crust topped with<br />
onions, peppers, mushrooms, strips of marinated, seasoned sirloin steak and shredded provolone cheese. A medium pie is<br />
being offered for $9.99, with the opportunity to get a second medium for an additional $5. (Restaurant Business <strong>Menu</strong><br />
Strategies Newsletter, 8/27/03)<br />
International Activities |<br />
Domino’s Pizza’s master franchisee in Israel plans to sell 24 restaurants as part of a financial restructuring. Omni Food<br />
Brands, which is expected to post a loss for the third year in a row, operates all Domino’s units in Israel. According to reports,<br />
the units would be closed in a few weeks if a buyer is not found. Domino’s said it is “optimistic” that the stores would be sold to<br />
a new owner. (NDNF 12/4/03)<br />
Technology |<br />
Domino’s Pizza has concluded that not many people want to place pizza orders online. It plans to continue to put its primary<br />
focus on the telephone, which its customers find to be a quick and efficient way to order pizza. The company has accepted<br />
online orders for quite awhile and recently spent millions of dollars on a new POS system for company stores that offers<br />
enhanced order-taking capability. Dominos chief executive David Brandon noted that customers ordering online tend to spend<br />
more but that the number of people interested to ordering via their computers is so small that money spent on cultivating them<br />
does not yield a good return on investment. (RB 4/1/03 p10)<br />
Domino’s Pizza will introduce its customers to the eBay auction site by advertising back-to-school and college football offers<br />
from eBay on its pizza boxes. (FIR 9/1/03 p6)<br />
OrderStream is a voice-recognition ordering system created by Jacent Technologies of Santa Clara, CA. At a Domino’s Pizza<br />
unit in Danville, CA, that has been beta testing the system since 2000, OrderStream is credited with an extra $3,000 a month<br />
in sales. Orders are taken by the computer and they pop up on a screen that prints out a receipt. The owner of the Domino’s<br />
unit said that rather than taking orders on the phone, his staff can concentrate on baking pizzas. He credits the system with an<br />
80% increase in overall efficiency and a $2 increase in the average ticket price. The system costs $9,500–$14,5000,<br />
depending on the number of phone lines. Thus far, fewer than 100 OrderStream systems have been installed by Jacent but<br />
the company has several hundred more in the pipeline at locations that represent six major brands. (QSR 9/03 p14)<br />
Personnel |<br />
David Brandon, Chairman<br />
Harry Silverman, Chief Financial Officer<br />
Ken Calwell, Senior Vice President of Marketing<br />
Jim Caldwell, Vice President of Purchasing<br />
Michael Lawton, Vice President of Finance<br />
Jefferey Lawrence, Vice President of Finance<br />
Terri Snyder, Vice President of Marketing<br />
Al Rose, Product Development<br />
Burger King elected David A. Brandon and Manny Garcia to its board. Brandon is chairman and CEO of Domino's Pizza, while<br />
Garcia is CEO of Pebbles Restaurants. (NRN Daily NewsFax 9/10/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
219
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Domino’s Pizza has concluded that not many people want to place pizza orders online. It plans to continue to put its primary<br />
focus on the telephone, which its customers find to be a quick and efficient way to order pizza. The company has accepted<br />
online orders for quite awhile and recently spent millions of dollars on a new POS system for company stores that offers<br />
enhanced order-taking capability. Chief executive David Brandon noted that customers ordering online tend to spend more but<br />
that the number of people interested in ordering via their computers is so small that money spent on cultivating does not yield<br />
a good return on investment. In better news for the chain, the company launched a revamped version of its Web site in early<br />
April. A noticeable feature of the new site is the option of viewing it in Spanish. The bilingual feature is a first among national<br />
pizza delivery chains. (Restaurant Business; SupermarketGuru.com)<br />
Domino’s extended its chairman and chief executive’s employment contract through 2008, according to an SEC filing. Dave<br />
Brandon, who joined the company in March 1999, earns a base salary of $600,000. In addition, he is paid a performancebased<br />
annual bonus that is to total no more than 200% of his base salary. (NRN 7/7/03 p72)<br />
Domino’s Pizza has rolled out a Philly Cheese Steak Pizza featuring marinated sirloin steak, onions, peppers, mushroom and<br />
provolone cheese. A medium pie will sell for $9.99 and a second medium for $5 more. Domino’s, which partnered with the<br />
National Cattlemen’s Beef Association for the item, said the pizza is its first new pie since January 2000. (NDNF 8/26/03)<br />
Burger King added a Domino’s executive and a former franchisee to its board of directors. Chairman and chief executive David<br />
A. Brandon’s company, Domino’s Pizza, is owned by Bain Capital, part of the consortium led by Texas Pacific Group and<br />
including Goldman Sachs Capital Partners that purchased Burger King last December. Manny Garcia, a sometimes-vocal critic<br />
of Burger King’s management when he was a franchisee, also was added to the board. He currently is chief executive of<br />
Pebbles Restaurants in Longwood, FL, a casual chain that he founded. Burger King’s board also includes the chain’s chief<br />
executive, Brad Blum, president Bob Nilsen and representatives from each of its three owners. Serving as board chairman is<br />
Dick Boyce, a Texas Pacific partner. (NRN 9/22/03 p191; RB 10/15/03 p15)<br />
Domino’s Inc. for the third quarter ended September 7, reported systemwide sales increased 5.5% to $927 million compared<br />
to the same quarter a year ago. Same-store sales increased 0.5%, and revenues increased 5.7%. (NRN Daily NewsFax<br />
10/29/03)<br />
Domino’s Inc. for the third quarter ended September 7, reported revenues increased 5.7% to $292.8 million compared to the<br />
same quarter last year. Systemwide sales increased 5.5% to $927 million. (Nation’s Restaurant News 11/10/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
220
Don Pablo's<br />
Headquarters<br />
Hancock at Washington, Madison, Georgia 30650 USA<br />
Tel: (706) 342 4552 Fax: (706) 343 2434<br />
www.donpablos.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 250,805 268,250 297,348<br />
Company-owned ($000) 250,805 268,250 297,348<br />
Franchised ($000) - - -<br />
U.S. Number of Units 120 131 139<br />
Company-owned 120 131 139<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,100 2,200 2,139<br />
Concept Positioning |<br />
Don Pablo's restaurants, known as “The Real Enchilada,” specialize in fresh Tex-Mex and traditional Mexican dishes that<br />
appeal to a broad customer base. Open for lunch and dinner, its menu items are prepared on-premise to assure that its<br />
promise of freshness and quality is delivered. Food and non-alcoholic beverages account for more than 80% of sales.<br />
Units have a distinctive Mexican village plaza feeling created with an open floor plan and use of skylights and an indoor<br />
fountain. In addition, tortillas are cooked in the dining areas. The buildings are two-story and range in size from 6,000–9,900<br />
sq.ft. with seating for 230 in the dining room. A balcony encircles the first floor dining area and provides seating for an<br />
additional 70 bar patrons. Most units also offer outdoor patios for approximately 50 more people. The Mexican design is<br />
completed with the use of plants, signs, artwork, stucco, brick and tile. It also has a single story prototype that has a smaller<br />
bar area set within the same ambiance. Both designs have high ceilings and similar seating capacities.<br />
The first Don Pablo's was opened in 1985 by DF&R Restaurants which had been founded in 1977. In early 1993, DF&R went<br />
public and in late 1995, Avado acquired all the stock of DF&R to establish it as a wholly owned subsidiary of that company.<br />
Current management includes Robert A. Andreotolla, chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Wide variety of Mexican entrees including mesquite grilled entrees such as fajitas, carne asada & chicken. Also menus<br />
enchiladas & tacos served with various sauces, tortilla soup, salads, and appetizers such as quesadillas. Signature dessert:<br />
ice cream nachos. 15 lunch specials priced $4.49–$7.19 add to regular menu. Full liquor service. <strong>Menu</strong> Prices: $4.99–<br />
$10.99Check Averages: $8–$11.50<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
221
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Darden Restaurants said it acquired three Don Pablo’s restaurant locations and one Hops unit from Avado Brands. The units<br />
will be converted to the Smokey Bones BBQ Sports Bar concept. The Don Pablo’s sites are in Greensboro, NC; Bowie, MD;<br />
and Youngstown, OH. The Hops site is in Columbus, OH. Terms were not revealed. Darden’s other brands are Red Lobster,<br />
Olive Garden and Bahama Breeze. (NRN 3/10/03 p77)<br />
<strong>Menu</strong> Development |<br />
Don Pablo’s introduced a new menu that showcases a greater emphasis on fresh Mexican foods. Mexican-style pizzas were<br />
added to the appetizer collection, while new salads join the entrée menu. It also added a new line of burritos dubbed Real<br />
Burritos. They feature black beans, Mexican rice, Monterey Jack cheese and pico de gallo wrapped in a flour tortilla with a<br />
choice of mesquite grilled chicken or steak. (Restaurants & Institutions, Company <strong>Menu</strong>)<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Don Pablo’s is testing a low-carbohydrate fajita line and a low-carb margarita that are expected to roll out in September. The<br />
fajitas feature either smoked chicken, Black Angus sirloin beef or mahi mahi and include roasted squash and mushrooms.<br />
Lettuce is substituted for tortillas. The margarita is said to feature nontraditional sweeteners and fresh-squeezed juices rather<br />
than frozen varieties, which often include high-fructose corn syrup. (NRN Daily NewsFax, 7/16/03)<br />
Don Pablo’s launched a new low-carbohydrate menu. Items included are a Low Carb Margarita ($6) and three varieties of<br />
fajita items served with wrapped in lettuce instead of tortillas. The Mahi Mahi and Black Angus Sirloin have 15 grams of<br />
carbohydrates and the Smoked Chicken has 18 grams of carbohydrates. The varieties are priced from $11.49 to $13.49. (NRN<br />
Daily NewsFax 10/14/03)<br />
Personnel |<br />
Robert Andreottola, Chief Executive Officer<br />
Jeff Brust, Vice President of Finance<br />
Greg Graber, Vice President of Operations<br />
Susan Morgan, Vice President of Marketing<br />
Mike Reinert, Director of Purchasing<br />
News & Other |<br />
Avado is reorganizing in an attempt to lighten its cash burden. It closed the headquarters of its 65-unit Hops Restaurant, Bar<br />
and Brewery chain in Tampa, FL, and consolidated all management functions in its home office in Madison, GA. Hops chief<br />
executive Ronald Magruder resigned; his duties will be assumed by Avado chairman and chief executive Tom Dupree. About<br />
29 Hops management and support employees were affected, with some given the chance to relocate or remain with the<br />
company in field positions. Also set for a realignment of executive duties is Avado’s other main brand, the 111-unit Don<br />
Pablo’s Mexican Kitchen. The Hops’ effort is part of Avado’s cost-cutting as it sells-off assets in anticipation of a May 25<br />
deadline for retiring its $75 million credit facility. Its auditors recently expressed “substantial doubt” about its ability to continue<br />
as a “going concern.” (NRN 3/31/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
222
<strong>RISE</strong> COMPANY PROFILE<br />
Don Pablo’s is testing a fast-casual area called Don Pablo’s Taco Stand in two of its Indianapolis-area restaurants. Initially<br />
open from 11 a.m. to 3 p.m., the section initially targeted lunchtime carryout business but its hours recently were extended<br />
through dinner. The Taco Stand has its own seating area and limited menu. (R&I 3/1/03 p66)<br />
Don Pablo’s will test a low-carb fajita line and a low-carb margarita. The 109-unit chain plans to roll out the offerings<br />
systemwide in September. The fajitas are available with smoked chicken, black Angus sirloin beef or mahi mahi and will also<br />
feature roasted squash and mushrooms. They will be wrapped in lettuce instead of tortillas. The margarita will use<br />
“nontraditional” sweeteners and freshly squeezed rather than frozen juices, which often contain high-fructose corn syrup. Don<br />
Pablo’s is based in Madison, GA. (NDNF 7/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
223
Donatos Pizza<br />
Headquarters<br />
1 Easton Oval, Columbus, Ohio 43219 USA<br />
Tel: (614) 416 7700 Fax: (614) 416 7701<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 191,000 170,000 130,000<br />
Company-owned ($000) 140,000 120,000 80,000<br />
Franchised ($000) 51,000 50,000 50,000<br />
U.S. Number of Units 181 197 156<br />
Company-owned 130 145 100<br />
Franchised 51 52 56<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 980 975 799<br />
Concept Positioning |<br />
Donatos Pizzeria owns, operates and franchises restaurants that offer high quality, value-priced pizza and submarine<br />
sandwiches, salads, wings and desserts for dine-in, carry-out, delivery, call-ahead drive up and catering. In addition, most<br />
areas also have online ordering. Currently, off-premise occasions account for 60% of the company’s sales mix. Units are<br />
primarily freestanding, although it does have units in dual user buildings, high visibility end cap and in-line locations.<br />
A Donatos commissary manufactures its proprietary pizza dough. It can support and service a total of 300 stores with the<br />
dough. Distribution of all supplies is handled through independent distributors.<br />
The company was founded in 1963 in Columbus, OH, by Jim Grote. Donatos began franchising in 1991. In mid-1999,<br />
McDonald’s Corp. acquired the company.<br />
Current management includes Jim Grote, executive chairman as well as Bill Rose, president and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: The Original, a pizza with 100 pieces of pepperoni. Also menus other pizza varieties such as The Works with<br />
pepperoni, sausage, mushrooms, green peppers, onions & provolone cheese; Chicken Vegy Medley, Serious Meat, Vegy,<br />
Mariachi Beef or Chicken & Hawaiian. Other toppings include homemade sausage, ham, ground beef, fresh veggies, jalapeno<br />
peppers, olives & pineapple. Pizza sizes available as 7, 12 & 14-inches & accounts for 80% of the menu mix.Also features Big<br />
Don submarines, fresh salads & breadsticks. <strong>Menu</strong> Prices: $3.50–$14<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
224
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Donatos’ menu has undergone extensive changes since it was acquired by McDonald’s three years ago. Armed with<br />
McDonald’s resources, the chain supplemented local staff with two corporate chefs and conducted extensive consumer<br />
research to determine whether Donatos’ signature thin crust pizza would enjoy popularity outside the chain’s central Ohio<br />
base. Based on this research, it added a second line of pizza with a thicker crust and a different sauce developed by the<br />
corporate chefs. The new line did, however, retain Donatos’ practice of edge-to-edge toppings. Several sandwiches, including<br />
a chicken club, have also been added to the menu along with wings, breadsticks and a children’s menu with a 7-inch onetopping<br />
pizza and soft drink. It has also brought popular items from its catering menu, such as apple and cherry dessert<br />
pizzas, to its core menu. (Pizza Today)<br />
Smaller, snack-sized portions are becoming increasingly common on chain menus as many consumers adopt grazing styles of<br />
eating versus three main meals. According to Information Resources Inc.’s “What do Americans Really Eat?” survey, many<br />
consumers are relying on snack-size portions up to six times daily instead of larger main meals. To meet this need, a number<br />
of chains have retooled their menus. California-based Z’s Pizza already offers its pizza by the slice (a practice not terribly<br />
common on the West Coast) but is also considering “hors d’oevre-size” half slices as well as a 16-oz. side salad besides its<br />
standard 32- and 64-oz. sizes. Donatos has expanded its appetizer menu from side salads and bread sticks to now include<br />
three-cheese garlic bread and wings. Schlotzsky’s also noticed more traffic in off-peak periods and now offers sandwiches in<br />
small (4-inch) and regular (6-inch) sizes. Salads are also available in whole- and half-portions and baked potatoes in whole-<br />
and half-sizes are currently in test. Cosi serves S’Breadables to appeal to snackers. The item features wedges of its signature<br />
flatbread served with a choice of seven spreads. Options include sun-dried tomato, pesto ricotta, hummus and Tuscan salsa.<br />
(QSR Magazine, 9/03, p70)<br />
Personnel |<br />
Jim Grote, Chairman<br />
Steve Dubrose, Chief Financial Officer<br />
Tom Krouse, Senior Vice President of Marketing<br />
Roger Howard, Vice President of Operations<br />
News & Other |<br />
Donatos Pizzeria Corp. officials denied rumors that parent McDonald’s Corp. may sell the chain of more than 180 restaurants.<br />
They noted that McDonald’s remains committed to the concept. (NDNF 3/7/03)<br />
McDonald’s Corp. declined to comment on media reports that it will sell its nonburger chains, including Boston Market,<br />
Chipotle and Donatos Pizzeria. The three brands are grouped under its “Partner Brands” division. McDonald’s reportedly has<br />
contacted private equity firms about the possibility of selling a 50% to 60% stake in its nonburger concepts. One report said<br />
the company is looking for a deal in which it retains the right to buy back the interest in about five years. With a total of 1,083<br />
units, the partner brands had total 2002 sales of $1 billion. McDonald’s also declined to comment on rumors that it is planning<br />
another round of layoffs that could involve several hundred employees. In 2002, the company cut 600 corporate jobs and in<br />
2001, it reduced the number of divisions from five to three and eliminated 700 jobs at its headquarters in Oak Brook, IL.<br />
Another media report said the company is considering reducing the number of U.S. divisions from three to two, which would<br />
cut costs and centralize the company even further. (NRN 4/7/03 p1; FIR 3/24/03 p7)<br />
Donatos Pizzeria is searching for a new chief executive following the resignation of Bill Rose, a 30-year veteran of McDonald’s<br />
Corp., which owns the 180-unit pizza chain. McDonald’s has declined to confirm reports that it is exploring a sale of its three<br />
non-burger chains, including Chipotle and Boston Market. (NRN 5/5/03 p156)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
225
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Corp. is “making headway” with operational changes, reorganized marketing efforts and “more wholesome<br />
choices” on the menu, chairman and chief executive Jim Cantalupo told shareholders at its May 22 annual meeting in Oak<br />
Brook, IL. He told shareholders that their “faith and patience” would be rewarded, although it could take up to 18 months. He<br />
acknowledged that the chain still has “a long way to go,” despite its domestic same-store sales’ positive turn in April following<br />
its debut of a new premium salad line. In related news, the company may eliminate more jobs after cutting 1,450 in the last two<br />
years. It told analysts that it is examining staffing levels in an effort to weed out duplication and waste. Special attention is<br />
being paid to headquarters staff, their role in the company and whether or not they are duplicating tasks that are being handled<br />
in the field. In other news, McDonald’s was ordered by a Los Angeles County Superior Court jury to pay $16.5 million to former<br />
four-unit Southern California franchisee Sandra Darling, who charged that the company had conspired to defraud her, wrongly<br />
force her from the system and pushed her into bankruptcy. The jury, which heard charges that McDonald’s was interested in a<br />
$3.5 million-a-year branch she ran and would not subordinate a loan she needed to make required improvements, awarded<br />
Darling $6.5 million in compensatory damages and $10 million in punitive damages. McDonald’s said it is confident the<br />
decision will be overturned. And finally, Cantalupo acknowledged that McDonald’s is conducting a strategic review of its<br />
nonburger chains—including Boston Market, Chipotle and Donatos—with Morgan Stanley. (NRN 5/12/03 p4 & 6/2/03 p4; RB<br />
5/15/03 p12; NDNF 5/27/03)<br />
McDonald’s Corp. recently made a number of personnel changes. Promoted was Claire Barbrowski to chief restaurant<br />
operations officer. Previously, she was president of the chain’s Asia Pacific, Middle East and Africa division. Marvin Whaley,<br />
president of the chain’s North Asia division, will replace Barbrowski. Vice chairman Jim Skinner assumed additional<br />
responsibilities, including overseeing McDonald’s Holding Co. (Japan) Ltd. Richard Floersch was named worldwide human<br />
resources director. Previously, Floersch was senior vice president of human resources at Kraft Foods International. Business<br />
development president Mats Lederhausen assumed more managerial duties and will focus exclusively on the chain’s partner<br />
brands, which include Chipotle, Boston Market and Donatos Pizza. In other news, the chain also approved a plan to offer<br />
franchisees payment for rebuilding costs. The company will pay $475,000 toward the estimated $1.7 million for rebuilding an<br />
older unit. Originally, McDonald’s expected the expense to be absorbed solely by franchisees. In exchange for the payment,<br />
owner-operators will increase their rent by 1%. (NDNF 11/5/03; CT 10/21/03 Sec. 3 p1)<br />
McDonald’s U.S. sales rose 15% in October, the company’s strongest monthly sales gain in five years. October same-store<br />
sales in U.S. McDonald’s restaurants jumped 15.1% and comparable-restaurant sales worldwide rose 8.4%. The latter figure<br />
included a positive turn in Europe, where same-store sales rose 2.1%. In related news, just a few weeks after McDonald’s<br />
indicated that a decision would soon be made about its “partner brands” came reports that the company was close to finalizing<br />
a deal to sell the 180-unit Donatos Pizzeria chain back to its founder, Jim Grote. Donatos declined to comment on the reports.<br />
McDonald’s had said that it expected to take a fourth-quarter charge for actions related to its partner brands, which as a group<br />
are losing money. McDonald’s assigned Mats Lederhausen, its head of business development, to focus exclusively on those<br />
brands as part of a global senior management reorganization. Separately, McDonald’s rolled out to all U.S. stores its new<br />
Chicken McNuggets, which are made with all white meat. Compared with the original McNuggets, the new version’s four-piece<br />
order has 40 fewer calories, 3 grams less fat and 0.5 grams less saturated fat. (NRN 11/17/03 p1; NDNF 11/19/03 & 12/3/03;<br />
FIR 11/17/03 p7)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
226
Dunkin' Donuts<br />
Headquarters<br />
14 Pacella Park Drive P.O. Box 317, Randolph, Massachusetts 02368 USA<br />
Tel: (781) 961 4020 Fax: (781) 963 2913<br />
www.dunkindonuts.com<br />
Ownership: Private<br />
Segment: Limited Service Donut<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,700,000 2,496,829 2,324,244<br />
Company-owned ($000) - 1,674 -<br />
Franchised ($000) 2,700,000 2,495,155 2,324,244<br />
U.S. Number of Units 4,010 3,675 3,643<br />
Company-owned - 2 -<br />
Franchised 4,010 3,673 3,643<br />
International Sales ($000) 355,000 361,878 253,745<br />
International Units 1,428 1,578 1,514<br />
Average Sales/Unit ($000) 700 679 -<br />
Concept Positioning |<br />
Dunkin’ Donuts is a chain of specialty restaurants featuring fresh doughnuts, bagels and other baked goods.<br />
Units are generally open 24 hours day, with about 70% of its sales during the breakfast period. A typical full-producing unit is<br />
about 1,720 sq.ft. Most shops have remote seating, instead of counters, and about 400 have drive-through windows. Units<br />
feature a contemporary design with magenta and gray colors.<br />
Satellite shops, anything from carts and kiosks to small stand-alone shops, with product supplied by a nearby unit, have been<br />
developed for areas with high traffic and limited space. These have proven to be very successful. Expansion of self-service<br />
branded products in convenience stores, gas stations and other foodservice outlets is continuing, with many units operating<br />
their own branded product routes.<br />
In addition, Dunkin’ Donuts signature coffee is retailed on-line. Orders are shipped within 48 hours.<br />
In 1948, William Rosenberg opened a coffee and donut shop called “Open Kettle” in Quincy, MA. When a competitor opened a<br />
donut shop nearby in 1950, Rosenberg modernized his shop design and named it Dunkin' Donuts. In 1955, the company<br />
began franchising operations. In 1989, acquisition by Allied Domecq was completed. In addition to Dunkin' Donuts, Allied owns<br />
Baskin-Robbins. In 2000, the company opened its 5,000th unit. Its Mister Donut brand has been converted to the Dunkin'<br />
Donuts name.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: hot coffee & variety of plain, fancy & filled donuts, mini-donuts, Munchkins (donut holes) & cholesterol-free<br />
donuts; all made fresh daily. Also bacon-and-Cheddar omelet sandwiches for breakfast, croissants, soups, chili, muffins,<br />
bagels, brownies & cookies. Many offer breakfast specials such as donuts with coffee or juice. Has specialty beverages<br />
available such as chocolate Coolata. Introduced new Café Blend coffee–a rich, bold roast without the bitterness. Check<br />
Average: $1.85.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
227
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Allied Domecq Quick Service Restaurants will add about 25 Baskin-Robbins and Dunkin’ Donuts stores in the Albuquerque,<br />
NM, area. Franchisees already operate 10 Dunkin’ Donuts and 23 Baskin-Robbins there. (NDNF 2/19/03)<br />
Dunkin’ Donuts expects to open about 450 new stores this year, a 75-unit increase over last year’s 375 domestic outlets. Last<br />
year, 100 of those openings were part of combo or trombo locations that combined the doughnut concept with Baskin Robbins<br />
and Togo’s Great Sandwiches. All three brands are owned by Allied Domecq Quick Service Restaurants. (FER 4/03 p9)<br />
Dunkin’ Donuts plans to open an additional 1,000 outlets in the United States during 2004. (Restaurantbiz.com 9/18/03)<br />
Promotion Plans |<br />
Dunkin’ Donuts hired Demantra Inc. to improve the chain’s summer cold beverage promotions. (NRN Daily NewsFax 12/4/03)<br />
<strong>Menu</strong> Development |<br />
Dunkin’ Donuts has completed its test of a line of espresso beverages and is scheduled to roll the drinks out nationally this fall.<br />
(Nation’s Restaurant News)<br />
Dunkin’ Donuts will launch a line of espresso beverages following a test and the agreement of its franchisees. The nationwide<br />
rollout is pegged for this fall. In related news, the chain is rolling out a new bulk coffee merchandiser that was expected to be<br />
installed in about 1,000 New England stores by May and is to be followed by 2,000 more units across the country by year’s<br />
end. The display stands, either 4 ft., 5 ft. or 6 ft. long, feature millwork and graphics. At a cost of less than $1,000 each, they<br />
replace a less substantial wire rack stand. And finally, Dunkin’ Donuts signed a four-year deal with the New York Yankees to<br />
be the exclusive sponsor of an in-game promotion at all home games. In addition, the first 18,000 adults entering Yankee<br />
Stadium on August 22 will receive a Dunkin’ Donuts-branded travel mug and a breakfast sandwich coupon. (FER 4/03 p9;<br />
NRN 4/21/03 p3)<br />
Dunkin’ Donuts introduced new baked goods for summer. It is now offering three lemon donuts for a limited time in Lemon<br />
Burst, Lemon Frosted and Lemon Glazed varieties for 69¢ each. The chain also debuted a Cinnamon Apple Scone filled with<br />
bits of apples and cinnamon and topped with icing. It is priced at $1.29. (Company Release, 6/23/03)<br />
Dunkin’ Donuts launched several seasonal drinks for summer. Offerings include Lemonade Coolatta, a non-fat frozen<br />
beverage offered in three sizes and ranging in price from $2.29–$3.99, and a Caramel Iced Coffee that is also offered in three<br />
sizes and runs from 99¢ to $1.99. In addition, the chain’s new espresso line features plain latte and cappuccino as well as<br />
Hazelnut, French Vanilla, Cinnamon Swirl and Mocha Swirl flavored versions. Prices range from $1.79 for a small (10 oz.) to<br />
$2.29 for a medium (14 oz.) to $2.69 for a large (20 oz.). Espresso shots are 99¢. All coffee used is Free Trade Certified, and<br />
drinks can be made to order in about 60 seconds with a specialized espresso machine. The line is scheduled to be rolled out<br />
systemwide by next January. (Restaurant Business, 6/1/03, p52)<br />
Baskin-Robbins and Dunkin’ Donuts co-branded stores in the Northeast are offering Dunkin’ Donuts Coffee Ice Cream for the<br />
summer. It is made with Dunkin’ Donuts coffee beans. (Nation’s Restaurant News, 7/21/03, p39)<br />
Chai is a spiced tea drink popular in northern India that is now gaining ground on U.S. menus. Made with a blend of teas, milk<br />
and aromatic spices such as cardamom, cinnamon, cloves, ginger, nutmeg and pepper, it can be served hot or cold. At Port<br />
City Java based in Wilmington, NC, chai is an appealing alternative for guests who don’t drink coffee. Several major chains are<br />
now serving chai drinks, including Dunkin’ Donuts, Starbucks, Panera and Atlanta Bread. Starbucks is currently serving chai<br />
tea lattes in both hot and iced varieties as well as chai cream frappuccinos. Vancouver, WA-based Burgerville even offers an<br />
Oregon Chai milk shake. (Nation’s Restaurant News, 8/4/03, p31)<br />
Franchise Activity |<br />
Dunkin’ Donuts signed a deal with Lou Brienza and John Elliott to open three units over the next three years. Terms of the<br />
deal were not disclosed. (NRN Daily NewsFax 1/7/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
228
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Dunkin’ Donuts’ master licensee rights for Quebec are being sold to Alimentation Couche-Tard Inc. by parent Allied Domecq<br />
Quick Service Restaurants. Terms were not disclosed. Couche-Tard, a 10-unit Dunkin’ Donuts franchisee and c-store<br />
operator, plans to open 100 Dunkin’ units over the next five years, which would double the brand’s current number in Quebec.<br />
Couche-Tard will function as franchisor and be responsible for site selection, product rollouts, marketing and advertising and<br />
can operate the stores itself or franchise to third parties. (NDNF 8/29/03)<br />
Technology |<br />
Allied Domecq has signed an agreement with SkillSoft PLC calling for development, deployment, hosting and administration<br />
services in support of the chain's global e-learning solution. The first phase of the solution will be the training initiative targeted<br />
to franchise management and employees, addressing topic such as store management and customer service. The learning<br />
curricula, expected to be available to all three Allied Domecq chains (Dunkin' Donuts, Baskin Robbins and Togo's) by July, will<br />
be accessible through on-site computers owned by franchisees and outfitted with high-speed Internet connections. (Company<br />
Release)<br />
Allied Domecq agreed to use Vocus Inc.'s online software to direct and manage corporate communications initiatives. Based in<br />
Lanham, MD, Vocus's software is designed to increase efficiency of media campaign management and city expenses tied to<br />
media directories, printed materials and internal "clip books." Allied Domecq is the parent company of Baskin-Robbins',<br />
Dunkin' Donuts and Togo's Eatery. (Nation's Restaurant News 7/14/03 p44)<br />
Personnel |<br />
Jon Luther, Chief Executive Officer<br />
Will Krussel, Chief Operating Officer<br />
Joe Scafido, <strong>Menu</strong> Development/R&D<br />
Jennie Wilson, Chief Financial Officer<br />
Stephen Horn, Senior Vice President of Marketing<br />
Jayne Fitzpatrick, Vice President of Finance<br />
Philip Bennett, Vice President of Operations<br />
Ken Kimmel, Vice President of Marketing<br />
Donna Leibold, Product Development<br />
News & Other |<br />
Super Stop & Shop, a new store in Walpole, MA, includes a downsized Boston Market. Items can be carried out or eaten at a<br />
small seating counter. Even though other Stop & Shop areas throughout the store offer prepared foods, only the Boston<br />
Market counter offers seating. The store also includes a Dunkin’ Donuts section offering an array of fresh baked doughnuts<br />
and bagels, coffee and other beverages and prepared hot sandwiches. Boston Market has exclusivity on rotisserie chicken<br />
business in the store and Dunkin’ Donuts has exclusivity on doughnut sales. (Grocery Headquarters 2/03 p102)<br />
Baskin-Robbins said its franchisees in the Northeast will co-brand 100 new outlets with Dunkin’ Donuts by summer’s end. Both<br />
concepts are owned by Allied Domecq Quick Service Restaurants, which said that the franchisees’ total multibranding<br />
investment would be between $15 million and $17 million. The launch of the 100-store initiative was timed to coincide with<br />
Baskin-Robbins’ annual “Free Scoop Night,” which features free ice cream for a four-hour period. (NDNF 4/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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<strong>RISE</strong> COMPANY PROFILE<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
The Riese Organization, a multi-unit operator based in New York City, has switched to Pepsi-Cola North America as its<br />
exclusive soft-drink supplier at its more than 100 New York-area outlets. It signed a multi-year contract for Pepsi brands in<br />
fountain cups, bottles and cans. Among the concepts operated by Riese are T.G.I. Friday’s, Pizza Hut, Dunkin’ Donuts, KFC,<br />
Houlihan’s and Tad’s Steaks. Riese will convert from Coca-Cola products over a period of a few months. (NRN 2/24/03 p48;<br />
WRC 2/24/03)<br />
Baskin-Robbins plans to open 100 franchised stores in the Northeast along with sister brand Dunkin’ Donuts by the end of the<br />
summer. The concepts are part of Allied Domecq Quick Service Restaurants. The units will join the 60 dual-branded Baskin-<br />
Robbins and Dunkin’ Donuts outlets operating throughout the Northeast. The 100 openings represent an investment of $15<br />
million to $17 million. (NRN 5/19/03 p126<br />
Dunkin’ Donuts new espresso program will feature all TransFair USA Fair Trade Certified coffee. The program will be featured<br />
in 1,100 Dunkin’ Donuts shops in Massachusetts, Rhode Island and Connecticut by fall and in 3,100 Dunkin’ shops nationwide<br />
by January 2004. TransFair USA is a third-party certifier of coffee, tea and cocoa that guarantees farmers who produce fair<br />
trade-certified products a fair price for their harvest. In other news, Dunkin’ Donuts said it will use a music-themed summer<br />
promotion highlighting warm-weather beverages to target young adults. The promotion, which touts the new Lemonade<br />
Coolatta, teams Dunkin’ with MTV for a consumer sweepstakes with a grand prize that will send the winner and 10 friends on<br />
a private summer tour to three concerts. (GN 6/03 p9; NDNF 6/16/03)<br />
Allied Domecq Quick Service Restaurants (ADQSR) has restructured its corporate staff and named a new executive<br />
leadership team. The restructuring eliminated about 105 jobs, leaving the franchisor with about 1,235 employees. The move<br />
comes as ADQSR’s Dunkin’ Donuts is preparing for the October debut of espresso beverages at its more than 5,000 doughnut<br />
shops. The new line calls for training nearly 90,000 employees and spending about $40 million for new equipment. The<br />
restructuring comes about eight months after Jon Luther joined Allied Domecq as chief executive. He previously was president<br />
of Popeyes Chicken & Biscuits. The new leadership team includes RoJean DeChantal, people services officer; Will Kussell,<br />
chief U.S. operating officer; Paul Leech, chief operating officer, international; Joe Scafido, menu and concept officer; and<br />
Jennie Wilson, chief financial officer. In addition, the company has hired Gary Heckel, a former Darden executive, to handle<br />
concept development. ADQSR’s expansion plan for 2004 calls for 1,000 new points of sale in the U.S. and more than 400<br />
international outlets. (NRN 8/25/03 p4)<br />
Home Depot plans to expand a pilot program of adding Dunkin’ Donuts shops in its stores. The program is to be brought to<br />
metropolitan Atlanta in late 2003. In addition, Home Depot is testing small-scale McDonald’s stores in a few locations in the<br />
Los Angeles area. (FIR 8/4/03 p7)<br />
Dunkin’ Donuts plans to build more stores in five cities over the next two years: Tampa, FL; Charlotte, NC; Cleveland; Atlanta;<br />
and Detroit. The eventual goal is to enter the West Coast. Separately, Dunkin’ Donuts has begun installing $11,800 “superautomated”<br />
espresso machines in its stores. The Shaerer Ambiente machine grinds, measures and compacts espresso,<br />
forces steam through it to extract the liquid and then disposes of the grounds. It also includes a custom-designed system for<br />
measuring steamed milk for use in lattes and cappuccinos. (NW 9/29/03 pE4 & E8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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<strong>RISE</strong> COMPANY PROFILE<br />
Dunkin’ Donuts, Baskin-Robbins and Togo’s will be featured in the new All Day umbrella brand to be rolled out in a 2,300-sq.ft.<br />
prototype that was slated to open in late September in Burbank, IL. Allied Domecq Quick Service Restaurants (ADQSR) will<br />
decide on a schedule for future units and markets during the fourth quarter of fiscal 2003. A retrofit package for existing stores<br />
will be offered sometime next year. Exterior awnings tout each brand and the building and signage display a circular amalgam<br />
of each logo in the design of a clock, which reads “All Day” below. Inside, the clock motif is prominently featured in a wallpaper<br />
“mural” and on tabletops as well. Floor tiles are light-hearted, with some depicting ice-cream sprinkles and others coffee<br />
beans. The new unit makes use of synergies in several areas. The same oven will be used to bake Dunkin’ Donuts’ muffins<br />
and scones as well as Togo’s bread products and the same toasters and workstations will be used to prepare both breakfast<br />
and lunch sandwiches. The cashier stations will use one POS system. ADQSR is targeting combined sales for the new unit of<br />
between $1 million and $1.2 million. (R&I 9/15/03 p73)<br />
Dunkin’ Donuts for fiscal 2003, reported same-store sales increased 4.4% compared to last year. (NRN Daily NewsFax<br />
10/28/03)<br />
Dunkin’ Donuts Inc. for the fiscal year 2003, reported same-store sales increased 4.4%. (Nation’s Restaurant News 11/10/03<br />
p44)<br />
Allied Domecq QSR will continue co-branding Baskin-Robbins and Dunkin’ Donuts and is targeting markets such as Charlotte,<br />
NC, and Cleveland. In 2002, Baskin-Robbins was incorporated into 100 Dunkin’ Donuts sites in New England. (RB 11/15/03<br />
p26)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
231
Eat 'n Park<br />
Headquarters<br />
P.O. Box 3000, Pittsburgh, Pennsylvania 15230 USA<br />
Tel: (412) 461 2000 Fax: (412) 461 6000<br />
www.eatnpark.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 178,428 209,455 190,189<br />
Company-owned ($000) 178,428 209,455 190,189<br />
Franchised ($000) - - -<br />
U.S. Number of Units 77 76 76<br />
Company-owned 77 76 76<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,335 2,650 2,502<br />
Concept Positioning |<br />
Eat'n Park is a chain of family style restaurants with in-house bakeries, and most units are open 24 hours a day, seven days a<br />
week for breakfast, lunch and dinner. Many also offer Sunday brunch and special midnight buffets on Fridays and Saturdays.<br />
In addition, the chain has developed a signature sugar cookie based on the smiley face that is given free to children 10 and<br />
under.<br />
The first Eat'n Park was opened in Pittsburgh in 1949 by Larry Hatch. Early growth was concentrated within a 60-mile radius of<br />
its home base. In 1989, with the opening of a unit in Erie, PA, an expansion program in a 250-mile radius of Pittsburgh began.<br />
<strong>Menu</strong> Positioning |<br />
Broad-based menu including sandwiches on fresh-baked bread, pasta, seafood, hamburgers, soups & salads, and seasonal<br />
specials. Also has anytime breakfast section. Features breakfast & salad bars, healthy menu selections and in-house<br />
bakery.<strong>Menu</strong> Prices: $2.65–$7.45. Check Averages: $4.50–$5.70<br />
News & Other |<br />
The Chi-Chi’s Mexican Restaurant near Pittsburgh was linked by investigators to all 510 confirmed cases of hepatitis A in the<br />
state of Pennsylvania. Scallions imported from Mexico were officially named the likely cause of the massive hepatitis epidemic.<br />
Chi-Chi’s said that health officials had absolved its employees of responsibility for the liver disease, which claimed three lives<br />
as it spread through at least five states. In response to the outbreak, Taco Bell, Chili’s, Eat ‘n Park and Panda Express were<br />
among the chains that pulled green onions from their kitchens in November. (NRN 11/24/03 p1 & 12/1/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
232
Einstein Bros. Bagels<br />
Headquarters<br />
1687 Cole Blvd., Golden, Colorado 80401 USA<br />
Tel: (303) 568 8000 Fax: (303) 568 8039<br />
www.einsteinbros.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 303,487 300,627 376,000<br />
Company-owned ($000) 298,487 295,627 373,875<br />
Franchised ($000) 5,000 5,000 2,125<br />
U.S. Number of Units 376 377 463<br />
Company-owned 369 370 458<br />
Franchised 7 7 5<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 809 799 816<br />
Concept Positioning |<br />
Open seven days a week from early morning until late evening, the bulk of Einstein Bros.’/Noah’s NY Bagels’ sales are during<br />
the breakfast and lunch day parts. Customers place and pick up orders at a service counter for either on-premise dining or<br />
take-out. Bulk containers of its cream cheeses, coffees and teas are also available for carryout.<br />
All units, regardless of brand, average 2,200 sq.ft. with table or counter seating available. Where feasible, outdoor seating is<br />
also provided. The overall atmosphere of an Einstein unit is reminiscent of a neighborhood coffee shop, complete with a rack<br />
of daily newspapers for customer enjoyment.<br />
Einstein/Noah Bagel Corp. was formed in early 1995 by Boston Chicken through the acquisition of several regional bagel<br />
chains that were then converted to its flagship brand. Noah's was acquired in early 1996 for some $100 million in cash and<br />
stock. In February 1999, the company began testing the Einstein Bros. Bagel concept in the Los Angeles area by converting<br />
three to five of the 39 Noah’s New York Bagels units to Einstein restaurants.<br />
In April 2000, the company filed Chapter 11 bankruptcy. In June 2001, following a protracted battle, New World Coffee-<br />
Manhattan Bagel, Inc. and its affiliates, Einstein Acquisition Corp. and Greenlight New World LLC, became the winning bidder<br />
for the assets of Einstein/Noah. Bankruptcy court approved New World’s bid of $160 million in cash plus assumption of up to<br />
$30 million of certain operating liabilities. The deal includes Einstein/Noah’s roughly 485 units, a manufacturing facility in Los<br />
Angeles, a support center in Golden, CO, and all trademarks and intellectual property rights.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
233
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Offers 16 bagel varieties such as San Francisco sourdough, dark pumpernickel, multi-grain & wild blueberry & 11 cream<br />
cheese flavors. Also menus bagel & gourmet sandwiches such as new pizza melt or smoked salmon-and-the-works as well as<br />
focaccia, bagel dogs, gourmet salads, soups, oatmeal, scrambled-egg sandwiches, juices & gourmet coffees & teas.Noah's<br />
platter combinations include fresh sliced vegetables & New York Nova lox with bagels & spread choices. Also menus branded<br />
coffees. Check Averages: $3.50.<br />
Promotion Plans |<br />
Einstein Bros. expanded its panini sandwich ad campaign to five new markets to further the brand’s lunch business. The ads<br />
will air in Albuquerque, NM; Las Vegas, Madison, WI; Salt Lake City and San Diego over the next four weeks. (NRN Daily<br />
NewsFax 10/15/03)<br />
Einstein Bros. broke 30-second TV spots in five new markets, promoting 4 new panini sandwiches. Each sandwich is priced at<br />
$5.99. Markets targeted included Las Vegas, San Diego, Salt Lake City, Albuquerque, NM, and Madison, WI. (Nation’s<br />
Restaurant News 10/27/03 p14)<br />
<strong>Menu</strong> Development |<br />
Einstein Bros. plans to offer panini grilled sandwiches in three varieties this spring. Priced from $5.29–$5.49, they will also be<br />
available at Noah’s New York Bagel, also owned by Einstein parent New World Bagel. (Restaurant Business)<br />
Einstein Bros. now offers four grilled panini sandwiches on grilled ciabatta bread. Priced at $5.49, they are served with<br />
gourmet chips or a side salad and pickle. Varieties include: ■ Italian Chicken—roasted chicken, pepperoni, spinach, roasted<br />
red peppers, pesto and mozzarella ■ Cali Club—smoked turkey and peppered bacon topped with avocado spread, spinach,<br />
peppered dried tomatoes, mozzarella cheese and Gorgonzola spread ■ Taos Turkey—smoked turkey, roasted corn relish,<br />
peppered dried tomatoes, guacamole, Pepper Jack and mozzarella cheeses, and a jalapeno salsa “shmear” ■ Cuban Ham—<br />
ham, Swiss, dill pickles and creamy mustard sauce. (Company Release 11/4/03)<br />
Personnel |<br />
Paul J. Murphy, Chief Executive Officer<br />
Ed McPherson, Chief Marketing Officer<br />
Susan Daggett, Chief Operating Officer<br />
Michael Phillips, Senior Vice President of Operations<br />
Jocelyn Peterson, Vice President of Finance<br />
David Ammons, Vice President of Marketing<br />
News & Other |<br />
U.S. Airways began a two-week test of deli-style meal sales on some flights. Catered by LSG Sky Chefs, it features menu<br />
items from the Einstein Bros. bagel-café chain and was available on nonstop flights between Pittsburgh and five cities. The<br />
breakfast meal, selling for $7, includes a coffee crumb cake, mixed fruit with cream cheese dip, raspberry yogurt and fruit<br />
juice. One lunch and dinner option, priced at $10, is a smoked turkey sandwich with pepper Jack cheese on a challah roll with<br />
ancho chile-lime mayonnaise, potato chips, tomato-artichoke-mozzarella salad, a chocolate truffle cookie and a bottle of water.<br />
(NRN 3/31/03 p64)<br />
US Airways will begin offering meals for sale on most domestic flights beginning July 1. Offered on flights of more than 700<br />
miles, the In-Flight Café, designed in collaboration with LSG Sky Chefs and Einstein Bros. was designed in collaboration with<br />
LSG Sky Chefs and Einstein Bros. Breakfast, $7, features a blueberry-walnut muffin, honeydew and mandarin orange salad,<br />
yogurt and bottled water. Lunch and dinner, $10 each, will feature two choices: a chicken Caesar sandwich and the Einstein<br />
Bros. Bistro Chicken Salad. <strong>Menu</strong>s will change monthly. This fall, the In-Flight Café program also will be tested on US Airways<br />
Express flights. (NDNF 5/29/03 & 5/30/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
234
<strong>RISE</strong> COMPANY PROFILE<br />
The University of Minnesota’s renovated Coffman Memorial Union includes a food court with national and local brands.<br />
Einstein Brothers Bagels and Chick-fil-A are augmented with local brands and proprietary concepts from contract feeder<br />
Sodexho. Also offered is a c-store, the M Deli and a Starbucks outlet. (FM 7/03 p14)<br />
New World Restaurant Group completed its equity restructuring, resulting in 92% of its stock now being beneficially owned by<br />
investment firm Greenlight Capital. In addition, the company has a new management team. Paul Murphy was named chief<br />
executive and acting chairman; Susan Daggett was promoted to chief operating officer; and Richard Dutkiewicz was named<br />
chief financial officer. New World is parent of Einstein Bros. Bagels and Noah’s Bagels. (NDNF 10/3/03)<br />
Einstein Bros. plans to play down its bagel image by broadening the menu. To boost lunchtime business, stores may be<br />
reconfigured. (FIR 11/10/03 p7)<br />
LSG Sky Chefs signed an exclusive agreement to adapt some Hard Rock Café menu items for its In-Flight Café program.<br />
United Airlines began serving items such as honey ham and cucumber on wheat croissant with a bowl of pineapple and<br />
strawberries along with a cup of flavored yogurt and a bottle of spring water as a breakfast meal. Sold by an airline attendant,<br />
the meals are $7 for breakfast and $10 for lunch or dinner. LSG’s other restaurant partners include Wolfgang Puck, T.G.I.<br />
Friday’s, Einstein Bros., Vie De France, D’Amico & Sons and Fresh City. The brands will be rotated among participating<br />
airlines approximately every 90 days. American Airlines and American Eagle are the carriers that have most recently begun<br />
testing In-Flight Café programs. Already implementing the program or still testing it are US Airways, Midwest Airlines,<br />
Northwest Airlines and United Airlines. (FSD 11/15/03 p20)<br />
Turkey sales within the foodservice industry rose 7.3% during the first half of 2003, according to the National Turkey<br />
Federation’s annual membership survey. The top sellers among foodservice operators are fully cooked deli meats such as<br />
turkey breast, salami, bologna and other cured products. The NTF notes that increased sales can be attributed to an increase<br />
in the number of signature sandwiches containing turkey that are being offered by chains such as Subway, Arby’s and Einstein<br />
Bros. (NRN 11/10/03 p94)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
235
El Chico<br />
Headquarters<br />
12200 Stemmons Freeway Suite 100 PO Box 819-017, Dallas, Texas 75234<br />
USA<br />
Tel: (972) 241 5500 Fax: (972) 888 8198<br />
www.elchico.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 146,000 140,000 143,000<br />
Company-owned ($000) 105,000 100,000 103,000<br />
Franchised ($000) 41,000 40,000 40,000<br />
U.S. Number of Units 98 95 92<br />
Company-owned 70 69 66<br />
Franchised 28 26 26<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,575 1,563 1,560<br />
Concept Positioning |<br />
El Chico operates "Tex-Mex" style restaurants serving a primary customer base between the ages of 25 and 45. The concept<br />
focuses on high quality, freshly prepared Mexican foodstuffs. Units are largely freestanding and average 5,800 sq.ft., with<br />
seating for 200 patrons. Exteriors reflect a Mexican architecture and interiors feature painted stucco walls, complementary<br />
furnishings and a separate bar area. In 1996, a new prototype was developed that moved the bar into a position of dominance<br />
and added optional patio dining.<br />
It also operates a group of restaurants under different names including Casa Rosa, El Chico Cafe, Lucky’s Cafe, Cantina<br />
Laredo, Good Eats, III Forks, Spaghetti Warehouse, and Cool River.<br />
The business is an outgrowth of a Mexican-style restaurant opened by the Cuellar family in the 1940's. In 1967, seven familyowned<br />
restaurants were merged to form the present company. In September 1997, the company agreed to an acquisition bid<br />
by a Dallas investment firm Cracken, Harkey & Co. for some $50 million plus the refinancing of about $15 million in existing<br />
debt. The deal closed the end of 1997. Cracken, Harkey investors include E. Gene Street, founder of Black-eyed Pea, and<br />
Clyde E. Culp III, former president and chief executive officer of Long John Silver’s. Its corporate entity is currently known as<br />
Consolidated Restaurant Operations, Inc.<br />
<strong>Menu</strong> Positioning |<br />
Offers a variety of Mexican and Tex-Mex dinners adjusted to regional taste preferences and unit concept. Full liquor service<br />
available. <strong>Menu</strong> Prices: $3.99–$11.59. Check Averages: $9.85.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
236
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
El Chico is highlighting three starters in a new appetizer promotion. The “Uno, Dos, Tres” menu insert is included in the<br />
beverage menu to encourage guests to order starters with their drinks. Promotional offerings are: Top Shelf Guacamole made<br />
fresh tableside; Top Shelf Queso (chili con queso mixed with spicy taco meat and topped with pico de gallo, diced green<br />
onions and fresh diced tomatoes); and a Botanas Platter (crispy beef taquitos, spicy beef quesadillas, guacamole and chili con<br />
queso). (Restaurant Business Daily News, Company Web Site)<br />
Chicken dishes have gained even more exposure on menus as operators work to offer healthier or perceived as healthier<br />
options for consumers. The protein has long been popular for its versatility and applications for multiple dayparts. Ingredients<br />
and preparation techniques can also create nearly limitless flavor combinations. Cracker Barrel recently tested Broccoli<br />
Cheddar Chicken. Priced at $7.99, the dish features boneless chicken breast and broccoli florets in cheese sauce served with<br />
vegetables and biscuits or cornbread. Consumer response was impressive, and sales for the dish rivaled its signature turkey<br />
and dressing. Dairy Queen has relied on chicken to expand its non-burger options, increasing its chicken options by 40%. Its<br />
latest innovation is a Wild Buffalo Chicken Strip Basket. Other chain efforts include: ■ Screamin’ Chicken Buffalo Blue Cheese<br />
Sandwich—served on a hoagie bun, Checkers Drive-In Restaurants ■ Killer Cajun Omelet—with spicy diced chicken breast,<br />
mushrooms, Jack cheese, onions and Santa Fe sauce, First Watch ■ Camarones Escondido—grilled chicken breast stuffed<br />
with sautéed shrimp and topped with spinach, cheese and chipotle wine sauce, El Chico. (Restaurants & Institutions, 8/1/03,<br />
p39)<br />
Personnel |<br />
E. Gene Street, Chairman<br />
John Harkey, Chief Executive Officer<br />
Don Dungy, President<br />
Paul Hargett, Chief Financial Officer<br />
Mark Lamm, Chief Operating Officer<br />
Joette Cox, Vice President of Purchasing<br />
Bill Watson, Vice President of Marketing<br />
Carmen Summers, Director of Purchasing<br />
Tony Davidson, <strong>Menu</strong> Development/R&D<br />
Mike Caballero, <strong>Menu</strong> Development/R&D<br />
Reuben Martinez Lozano, Chef<br />
News & Other |<br />
Chevys announced it will be acquired by Consolidated Restaurant Operations, Inc., the operator of eight concepts, including El<br />
Chico, Cantina Laredo, The Spaghetti Warehouse, Good Eats, Cool River Café, III Forks, Lucky's and Silver Fox. Terms were<br />
not disclosed. (Company Release 6/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
237
El Pollo Loco<br />
Headquarters<br />
3333 Michelson Dr. Suite 550, Irvine, California 92612 USA<br />
Tel: (949) 399 2000 Fax: (949) 399 2176<br />
www.elpolloloco.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 363,828 339,004 305,000<br />
Company-owned ($000) 182,549 174,818 159,000<br />
Franchised ($000) 181,279 164,186 146,000<br />
U.S. Number of Units 306 293 278<br />
Company-owned 134 136 127<br />
Franchised 172 157 151<br />
International Sales ($000) 3,000 3,000 2,000<br />
International Units 4 4 4<br />
Average Sales/Unit ($000) 1,217 1,196 1,251<br />
Concept Positioning |<br />
El Pollo Loco offers marinated, flame-broiled chicken, a wide assortment of signature sides, fresh Mexican entrees, tortillas<br />
and fresh salsas. Units are open 14 hours daily, with customer traffic evenly distributed between lunch and dinner (one of few<br />
limited service concepts with such a balance). Over two-thirds of an average unit's sales volume is carryout, split between<br />
drive-through and in-store takeout operations.<br />
The typical unit prototype is 2,500 sq.ft., with seating for 65 and a drive-through window. Chickens are grilled over open flames<br />
in an exhibition-style area that is in full view of customers. Units also have a salsa bar that offers a variety of fresh salsas and<br />
condiments.<br />
Francisco “Pancho” Ochoa founded El Pollo Loco in 1975 as a roadside grill in Guasave, a small town on Mexico's Pacific<br />
Coast. The first U.S. restaurant opened in Los Angeles in 1980. In July 1987, Advantica Restaurant Group acquired Denny's<br />
and its operations including El Pollo Loco. In late December 1999, acquisition by American Securities Capital Partners, L.P.<br />
took El Pollo private in a deal worth $128 million.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Fresh chicken marinated in a proprietary blend of herbs, spices and fruit juices and then flame-broiled over an<br />
open grillServes 2–12 pieces with choice of sides, corn or flour tortillas and fresh salsas. Side dishes include: pinto beans,<br />
smokey black beans, Spanish rice, mashed potatoes and gravy, fresh vegetables, macaroni and cheese, coleslaw, fries, corn<br />
cobbettes, garden salad and potato salad. <strong>Menu</strong> also includes made-to-order specialty burritos, Pollo BowlsÒ, Pollo Salads,<br />
Chicken Nachos, Quesadillas, tacos and tacos al carbon, and hand-rolled taquitos. Newest items: Pollo Salads—the Fiesta<br />
Salad and the Caesar Salad. Also Churros and a variety of beverages. Some units feature Foster Freeze soft-service ice<br />
cream and ice cream desserts.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
238
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
El Pollo Loco rolled out two entrée salads, both priced at $4.99. The Chicken Caesar includes the chain’s marinated, flamegrilled<br />
chicken on a bed of lettuce with tortilla strips, cotija cheese, pico de gallo salsa, roasted pepitas and creamy cilantro<br />
dressing. A Chicken Fiesta offering is topped with Cheddar and Jack cheeses, roasted corn, poblano, guacamole, sour cream<br />
and chipotle dressing. Both salads also feature a topping of roasted Serrano peppers. (NRN Daily NewsFax)<br />
El Pollo Loco introduced two new entree-size salads, each selling for $4.99. Included in the Chicken Caesar are the chain’s<br />
marinated, flame-grilled chicken on a bed of lettuce, tortilla strips, cojita cheese, pico de gallo salsa, roasted pepitas and<br />
creamy cilantro dressing. Topping the Chicken Fiesta are Cheddar and Jack cheeses, roasted corn poblano, guacamole, sour<br />
cream and chipotle dressing. (NDNF 3/4/04)<br />
El Pollo Loco added a Twice-Grilled Burrito to the permanent menu at its California and Nevada restaurants. Priced at $4.99, it<br />
combines the chain’s citrus-marinated chicken, Cheddar and Monterey Jack cheeses, pico de gallo, sour cream and<br />
guacamole in a flour tortilla, which is then grilled. (NRN Daily NewsFax, 5/30/03)<br />
El Pollo Loco is offering Chili Lime Chicken through August 17. (Nation’s Restaurant News, 7/28/03, p18)<br />
El Pollo Loco Inc. added a dessert flan to its menu. Priced at $1.59, the item is vanilla-infused custard topped with caramel<br />
sauce. (NRN Daily NewsFax 10/21/03)<br />
El Pollo Loco debuted dessert flan. Priced at $1.59, the item is a vanilla-infused custard topped with caramel sauce. (NRN<br />
Daily NewsFax 10/21/03)<br />
Franchise Activity |<br />
El Pollo Loco franchisees Paul Michaels and Joe Zappala plan to open 40 restaurants in Chicago over the next few years. The<br />
first unit is slated to open in Summer 2004. (Crainschicagobusiness.com 12/20/03)<br />
Personnel |<br />
Stephen Carley, Chief Executive Officer<br />
Joseph Stein, Chief Financial Officer<br />
Karen Eadon, Chief Marketing Officer<br />
Kenneth Clark, Vice President of Operations<br />
Mark Hardison, Director of Marketing<br />
David Horing, Chairman<br />
Stephen Lash, Director of Purchasing<br />
News & Other |<br />
El Pollo Loco credits its focus on health-conscious grilled chicken as a key factor in its continued growth. The chain noted that<br />
several of its signature offerings were recently highlighted in Healthy Dining, a publication that notes nutritional information<br />
about restaurants in California’s Orange, Los Angeles and San Diego counties. Highlighted items included its Pollo Bowl, BRC<br />
Burrito, Chicken Taco Al Carbon and its new Pollo Choice Skinless Breast Meal. (Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
239
El Torito<br />
Headquarters<br />
4001 Via Oro Avenue, Long Beach, California 90810 USA<br />
Tel: (310) 513 7500 Fax: (310) 835 3156<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 255,000 240,000 225,000<br />
Company-owned ($000) 255,000 240,000 225,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 105 104 95<br />
Company-owned 105 104 95<br />
Franchised - - -<br />
International Sales ($000) 15,000 20,000 28,000<br />
International Units 7 9 17<br />
Average Sales/Unit ($000) 2,400 2,350 2,368<br />
Concept Positioning |<br />
El Torito is a Mexican dinnerhouse chain that caters to upscale singles and couples aged 25–49. Units are open for lunch and<br />
dinner seven days a week. Most offer Sunday brunch. Units are generally in freestanding buildings located on major<br />
thoroughfares in suburban areas. Neither size nor decor is standardized: El Toritos typically range from 7,500–11,000 sq.ft.<br />
with seating for 300–400. Units feature a hacienda style architecture punctuated by stucco walls, arches, fountains, tropical<br />
plants, pottery, murals and sculptures.<br />
While produce and some dairy products are purchased locally, most food products, restaurant supplies, and some beverages<br />
are purchased centrally.<br />
Larry J. Cano opened the first El Torito in Encino, CA, in 1954 and incorporated the company in 1969. Through the years, the<br />
chain has had several ownerships with the latest dating back to the mid-90's and the formation of Family Restaurants, Inc.<br />
which merged in late 1998 with Koo Koo Roo to form Prandium, Inc. In March 2000, Prandium announced its intent to sell all<br />
but six units of its El Torito operations to Acapulco Acquisition Corp., an investment arm of Bruckmann, Rosser, Sherrill & Co.<br />
for some $130 million. The deal closed mid-2000. The chain operates under the name El Torito Restaurants Inc.<br />
<strong>Menu</strong> Positioning |<br />
Broad selection of Mexican specialties and traditional dishes such as fajitas, tacos, enchiladas, tamales, nachos, guacamole,<br />
soups, salads, side dishes and desserts. "Fresh Sheet" offers seasonal specials; changes monthly. Also menus growing<br />
selection of low-fat or lower-fat entrees such as grilled chicken quesadillas using reduced-fat Monterey Jack cheese or halibut<br />
tacos or linguine with fire-roasted tomato sauce. New Party Platters servings groups of 5 and up range from chips and<br />
guacamole with salsa and buffalo wings glazed with Mexican chile sauce and served with hacienda ranch dressing to<br />
quesadilla slices, tamales and chicken Caesar salad. <strong>Menu</strong> Prices: $3.59–$9.69. Check Averages: $10.65.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
240
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Asian-inspired sauces are being used to add interesting flavors to ribs. Though barbecue, with its numerous regional<br />
variations, is still the top complement, non-traditional alternatives are evident on chain menus. At Famous Dave’s, baby back<br />
ribs are treated with a teriyaki marinade, while El Torito Grill serves tamarind baby back ribs as a unique complement to its<br />
menu of southwestern fare. (Restaurants & Institutions)<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Personnel |<br />
El Torito & Acapulco Restaurants hired Robert Trebing Jr. as chief financial officer. (Nation’s Restaurant news 09/08/03)<br />
El Torito announced Robert Trebing Jr. declined his appointment to chief financial officer. (NRN Daily NewsFax 9/25/03)<br />
News & Other |<br />
El Torito & Acapulco Restaurants reported same-stores sales decreased 4.5% in the first half of the year. (Nations’ Restaurant<br />
News 09/08/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
241
Famous Dave's<br />
Headquarters<br />
7657 Anagram Dr., Eden Prairie, Minnesota 55344 USA<br />
Tel: (612) 294 1300 Fax: (612) 294 1301<br />
www.famousdaves.com<br />
Ownership: Public<br />
Segment: Full Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 150,200 113,600 79,600<br />
Company-owned ($000) 86,400 85,400 69,200<br />
Franchised ($000) 63,800 28,200 10,400<br />
U.S. Number of Units 73 56 42<br />
Company-owned 40 37 33<br />
Franchised 33 19 9<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,400 2,400 2,096<br />
Concept Positioning |<br />
Famous Dave's has established itself as a barbecue “shack” complete with a down-home backyard barbecue menu and a<br />
Southern Hospitality feel. Most offer full service, but are designed to facilitate takeout with new units including a separate<br />
takeout counter. There are also counter-service-only units that menu just barbecue entrees and side dishes.<br />
Units are largely freestanding and follow one of three casual formats. The "Northwood" style lodge seats 150–260 in its 4,300–<br />
7,200 sq. ft. The interior features red-and-white checked tablecloths, weathered bar wood walls, overhead tin roofing, and<br />
abundant use of rustic '30s and '40s Americana antiques. The "shack" prototype is 2,900 sq. ft. and seats 60. The Blues Club<br />
features nightly musical entertainment in a Chicago blues-club setting. Its10,500 sq. ft. seats 250. Of the three, the lodge<br />
format is considered to be the company’s current expansion vehicle.<br />
In addition to its restaurant operations, Famous Dave’s trademarked barbecue sauce brands are distributed and sold in<br />
supermarkets throughout its various markets.<br />
Dave Anderson, who is also co-founder of Grand Casinos, Inc., started a little ribs-to-go restaurant in Hayward, WI, in 1994,<br />
calling it Famous Dave's. He later opened two more units in Minneapolis. In 1996, the company went public. In mid-1997, a<br />
franchising program was started. In April 1999, it completed a sale-leaseback arrangement for three of its restaurants with<br />
Franchise Finance Corp. of America, a national real-estate investment trust.<br />
In January 2000, the company announced its acquisition of four Red River Barbeque & Grille sites. Other 2000 acquisitions<br />
include two steakhouse units from Timber Lodge Steakhouse and two Hunters Restaurant & Pub sites. It also acquired fourunits<br />
of K.C. Masterpiece Barbecue & Grill, Overland Park, KS, in the fall of that same year. Current plans call for the<br />
development of more franchise units.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
242
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: Hickory smoked ribs, beef brisket and chopped pork. Offers 5 distinct barbecue sauces: Rich & Sassy, Texas<br />
Pit, Georgia Mustard, Hot Stuff & Devil’s Spit. Also menus barbecue and country oven-roasted chicken, barbecue sandwiches,<br />
hamburgers, soups, salads and traditional sides, including honey-buttered corn bread, Wilbur Beans, Shack fries and potato<br />
salad. Appetizers, which include Devil’s Spit Wings, make up 30%–40% of check totals. Desserts include bread pudding and<br />
hot fudge brownie. <strong>Menu</strong> Prices: $5–$19. Check Averages: $11.94.<br />
Expansion Plans |<br />
Famous Dave’s opened its 89th restaurant in Wisconsin. The unit seats 210 and is the chains eighth Wisconsin unit. (NRN<br />
Daily NewsFax 11/26/03)<br />
<strong>Menu</strong> Development |<br />
Asian-inspired sauces are being used to add interesting flavors to ribs. Though barbecue, with its numerous regional<br />
variations, is still the top complement, non-traditional alternatives are evident on chain menus. At Famous Dave’s, baby back<br />
ribs are treated with a teriyaki marinade, while El Torito Grill serves tamarind baby back ribs as a unique complement to its<br />
menu of southwestern fare. (Restaurants & Institutions)<br />
Famous Dave’s recently introduced a Sassy Summer Salads line to round out its protein-heavy menu. The greens-based<br />
garden salads can be topped with a choice of the chain’s signature barbecue meats—beef brisket, double-smoked ham or<br />
BBQ pulled chicken. Due to good consumer response, it is likely they will become permanent offerings and be re-dubbed<br />
“Sassy Barbecue Salads.” (Restaurants & Institutions, 8/1/03, p23)<br />
Famous Dave’s is offering three non-protein appetizers in response to customer research. They are being featured in a<br />
limited-time offer through December along with Famous Dave’s Smokehouse Trio (ribs, grilled hot links and roast chicken).<br />
Each is served with a grilled flatbread spread (garlic butter, Cajun seasonings and Parmesan cheese) and vegetables.<br />
Offerings include: ■ Fire Grilled Flatbread—flatbread used like a quesadilla and accompanied by grilled zucchini, yellow<br />
squash, cremini mushrooms, green and red onions, smoked tomatoes, Pepper Jack cheese and minced jalapenos ■ Smokin’<br />
Tommies—grilled flatbread wedges served with a blend of smoked tomatoes, fresh basil, roasted garlic, chipotle peppers and<br />
balsamic vinegar ■ Spin Dip—chilled spinach artichoke dip with grilled bread wedges. (Chain Leader 9/03 p36)<br />
Franchise Activity |<br />
Famous Dave’s agreed to terms with franchisee Utah BBQ Inc. to open the chain’s first restaurant in Alaska. Terms of the<br />
agreement were not disclosed. (NRN Daily NewsFax 1/9/04)<br />
Personnel |<br />
Jeffery Dahlberg, Chairman<br />
Dave Anderson, Chairman<br />
David Goronkin, Chief Executive Officer<br />
Diana Purcel, Chief Financial Officer<br />
Christopher O'Donnell, Senior Vice President of Operations<br />
Corrie Kvasnicka, Vice President of Purchasing<br />
Lane Schmiesing, Vice President of Marketing<br />
Famous Dave’s of America Inc. appointed Diana Garvis Purcel as chief financial officer. Recently, Purcel was vice president,<br />
chief financial officer and chief accounting officer at Paper Warehouse Inc. (NRN Daily NewsFax 11/19/03)<br />
Famous Dave’s of America Inc. named David Goronkin chief executive officer and to its board of directors. Previously,<br />
Goronkin served as chief operating officer and board member for Buffets Inc. (Franchise Times 9/03 p52)<br />
Famous Dave’s hired Diana Garvis Purcel chief financial officer. Most recently Purcel served as CFO at Paper Warehouse.<br />
(Restaurant Business Daily News 11/18/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
243
<strong>RISE</strong> COMPANY PROFILE<br />
Famous Dave’s named vice chairman Jeffery Dahlberg chairman. Dahlberg replaces company founder Dave Anderson, who is<br />
taking a post with the Bush Administration. (Restaurant Business Daily News 12/16/03)<br />
News & Other |<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Kokomo Island Café is a new Caribbean-influenced concept expected to open in November in the Mall of America in<br />
Bloomington, MN. The concept is being developed by Dave Anderson, founder, chairman and interim president of Famous<br />
Dave’s, in collaboration with franchisee John Nermyr, head of Competition BBQ, which recently opened a lodge-style Famous<br />
Dave’s adjacent to the mall site. (NDNF 7/25/03)<br />
Famous Dave’s of American Inc. reported same-store sales decreased 3.5% at company-owned restaurants and 3.8% at<br />
franchised units for the third quarter. Total revenues increased 8.8% to $26 million in the same quarter. (NRN Daily NewsFax<br />
10/6/03)<br />
Famous Dave’s of America agreed to sell three Atlanta-area stores and rights to that market to former CEO Marin O’Dowd.<br />
Terms of the deal were not disclosed. (RestaurantBiz.com 10/23/03)<br />
Famous Dave’s of America for the third quarter, reported comparable sales at company-owned restaurants decreased 3.5%.<br />
(RestaurantBiz.com 10/23/03)<br />
Famous Dave’s of America Inc. for the third quarter, reported revenues increased 8.8% to $26 million compared to the same<br />
quarter last year. (Nation’s Restaurant News 11/10/03 p45)<br />
Kokomo’s Island Café will expand in three Twin Cities locations next spring. Famous Investments, a partnership between<br />
Lamar Hamilton and Dave Anderson, founder and chairman of the Famous Dave’s chain, acquired a controlling stake in the<br />
three-unit Pickled Parrot II chain and will convert the units to Kokomo’s Island outlets in the spring. Pickled Parrots’ executives<br />
Ken Sherman, John White and Steve Rowland will continue operating the three locations, which have a tropical theme that<br />
should allow a smooth transition of business. The first Kokomo’s Island Café, which is licensed to three Famous Dave’s<br />
franchisees, opened in early November in the Mall of America in Bloomington, MN. (NDNF 11/24/03; RFM 11/20/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
244
Fazoli's<br />
Headquarters<br />
2470 Palumbo Dr., Lexington, Kentucky 40509 USA<br />
Tel: (859) 268 1668 Fax: (859) 268 2263<br />
Ownership: Private<br />
Segment: Limited Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 419,749 404,731 378,368<br />
Company-owned ($000) 196,096 193,383 188,827<br />
Franchised ($000) 223,653 211,348 189,541<br />
U.S. Number of Units 402 392 376<br />
Company-owned 180 180 176<br />
Franchised 222 212 200<br />
International Sales ($000) 989 - -<br />
International Units 3 2 1<br />
Average Sales/Unit ($000) 1,054 1,044 1,072<br />
Concept Positioning |<br />
Fazoli's restaurants feature Italian foods. Units are a blend of counter service and dining room operations. Takeout is available<br />
and accounts for some 30% of sales. Open for lunch and dinner, 60% of its business is from the dinner orders. Food is<br />
prepared fresh daily and made to order.<br />
Units average 2,800–3,000 sq. ft., with seating for 100–140 persons. The dining room offers a trattoria-like ambience with<br />
colorful awnings, bentwood chairs and shelves displaying Italian products. Currently, prototypes are also under development<br />
for sites in food courts and strip malls.<br />
Developed by Jerrico, Inc., Seed Restaurant acquired the concept in 1990. Kuni Toyoda, its current president, was involved<br />
with its operation at Jerrico. Seed Restaurant's principal investment partner is Duskin Co. Ltd., Osaka, Japan. In April 2002,<br />
Fazoli's signed a development agreement with McDonald's. Under the partnership, McDonald's will develop 20–30 Fazoli's<br />
restaurants in three U.S. markets with the option to acquire the entire casual Italian chain later.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: family style Italian entrees. Includes baked ziti, cheese ravioli, lasagna and fettuccine Alfredo. Hottest seller:<br />
combo platter of lasagna, fettucine and spaghetti; 12 priced under $3. Also menus pizza, spaghetti with tomato, meat or Italian<br />
sausage sauce options, chicken cacciatore, soups, salads, breads and hot oven-baked submarine sandwiches. Added 6 ovenbaked<br />
panini sandwiches including Ham and Swiss and Chicken Pesto. <strong>Menu</strong> Prices: $2.49–$8.49. Check Averages: $4.25.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
245
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Fazoli’s debuted a six-layer lasagna for $4.49. It features ridged noodles, ricotta cheese and marinara sauce topped with meat<br />
sauce and mozzarella cheese. For $4.99, the lasagna is placed over a layer of Alfredo sauce, topped with more sauce and<br />
cheese, then baked a second time. (Nation’s Restaurant News 9/22/03 p20)<br />
Personnel |<br />
David Smith, Chief Financial Officer<br />
Wanye Albritton, Chief Operating Officer<br />
Greg Lippert, Chief Marketing Officer<br />
Kuni Toyoda, Chairman<br />
Fazoli’s Restaurants named Greg Lippert to the newly created post of chief marketing officer. Formerly, Lippert was senior<br />
vice president of marketing and research and development at Mazzio’s Corp. (Nation’s Restaurant News 9/15/03 p62)<br />
News & Other |<br />
Fazoli’s Restaurants added a six-layer lasagna entree to its menu. It sells for $4.49. It also is available set on a serving of<br />
Alfredo sauce, topped with sauce and cheese and baked a second time ($4.99). (NRN 9/22/03 p20)<br />
McDonald’s Corp. announced that it intends to end its joint venture with Fazoli’s and close its Pret a Manger stores in Japan.<br />
However, the company plans to keep its Chipotle and Boston Market concepts and retain its stake in the Pret concept.<br />
(Restaurant Business Daily News 12/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
246
Fox & Hound English Pub & Grille<br />
Headquarters<br />
9300 E. Central Avenue, Wichita, Kansas 67203 USA<br />
Tel: (316) 634 0505 Fax: (316) 634 6060<br />
www.tentcorp.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 85,000 72,000 -<br />
Company-owned ($000) 85,000 72,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 55 44 -<br />
Company-owned 55 44 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,700 1,675 -<br />
Concept Positioning |<br />
Owned and operated by Total Entertainment Restaurant Corp., Fox & Hound English Pub & Grill is a full-service restaurant<br />
and bar geared toward entertainment in an upscale atmostphere.<br />
Units emphasize interactive entertainment by providing billiard tables and dartboards and televising sporting events and music<br />
videos. Averaging 9,600 sq. ft., restaurants are typically divided into three rooms, one for the bar and primary dining room, a<br />
second for another dining room and the third room for the billiard tables. Each room is equipped with state-of-the-art audio and<br />
videos, creating an "arena" environment for viewing regional and national sporting events. Rooms are decorated elegantly,<br />
with polished brass, embroidered chairs and booths, deep green and burgundy walls and etched glass. Restaurants are open<br />
from 11:00 a.m. to 2:00 a.m.<br />
The first Fox & Hound opened in 1994. In February 1997, Fox & Hound combined with Bailey's restaurants to form Total<br />
Entertainment Restaurant Corp. All units are company owned, and there are currently no plans for franchising. Key personnel<br />
include Steven M. Johnson, chief executive officer and director, and Gary M. Judd, president and director.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item—Typical bar fare, including pizza, ribs, sandwiches, burgers and a variety of grilled and smoked barbecue<br />
entrees, such as Texas Beef Brisket and Georgia Chopped Pork. Appetizers, soups and salads are also menued. A<br />
distinguishing feature of Fox & Hound is its beer selection. It offers over 100 brands of ales, lagers and specialty beer, with<br />
about 30 on tap. Alcohol sales account for approximatley 59% of company revenues. <strong>Menu</strong> Prices: $5.99–$16.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
247
Fox's Pizza Den<br />
Headquarters<br />
3243 Old Frankstown Rd., Pittsburgh, Pennsylvania 15239 USA<br />
Tel: (724) 733 7888 Fax: (724) 325 5479<br />
www.foxspizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 90,000 100,000 100,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 90,000 100,000 100,000<br />
U.S. Number of Units 202 217 217<br />
Company-owned - - -<br />
Franchised 202 217 217<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 430 430 -<br />
Concept Positioning |<br />
Fox’s Pizza Den is designed to emphasize a sense of community. Each shop is generally run by someone who lives in the<br />
area so that owners can get to know their customers. Open seven days a week, units are found in freestanding locations and<br />
strip malls. The look of each unit is, for the most part, up to individual owners.<br />
The company started its own commissary in 1986. Originally stocking about 80 items, it now offers more than 200 products<br />
ranging from private label sauces and prepackaged dough to shirts featuring the Fox’s logo.<br />
Fox’s Pizza Den was founded in Pitcairn, PA, by Jim Fox in 1971. Franchising began in 1974.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong>s a wide variety of pizzas and sandwiches. Franchisees have considerable freedom in their menu offerings, with some<br />
units offering chicken in addition to sandwiches and pizza.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
248
<strong>RISE</strong> COMPANY PROFILE<br />
Freshen's Premium Yogurt & Ice Cream<br />
Headquarters<br />
1750 The Exchange, Atlanta, Georgia 30339 USA<br />
Tel: (678) 627 5400 Fax: (678) 627 5454<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 137,000 130,000 120,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 137,000 130,000 120,000<br />
U.S. Number of Units 1,400 1,300 1,350<br />
Company-owned - - -<br />
Franchised 1,400 1,300 1,350<br />
International Sales ($000) - - 2,500<br />
International Units - - 4<br />
Average Sales/Unit ($000) 110 110 -<br />
Concept Positioning |<br />
Freshen's Premium Yogurt & Ice Cream is a chain of quick-service ice cream and frozen yogurt shops. Located primarily in<br />
malls, its current thrust is development of non-traditional locations including combination sites with other foodservice brands.<br />
The company also manufactures its own products.<br />
Basically a modular design and operational package, Freshen's units range in size from 64–600 sq. ft. and include prototypes<br />
for both ice cream and yogurt stores only as well as designs that incorporate their own pretzel and cookies brands.<br />
In addition, the company also owns Pretzel Logic and co-brands it in their units. Its third brand is On the Rock Ice Creamery.<br />
Freshen's was developed by its president, John Stern, in 1985 as the result of a perceived need for "gourmet-quality" frozen<br />
yogurt to sell in one of his pizza stores.<br />
<strong>Menu</strong> Positioning |<br />
Features 38 flavors of soft serve frozen yogurt and 35 toppings. 9 sugar-free non-fat flavors account for 30% of frozen yogurt<br />
sales; fruit toppings with non-sugar added are 60% of toppings sales. Available in wide range of products such as shakes, bulk<br />
and novelties. Also menus Outrageous, an ultra-premium ice cream with 21% butterfat in 17 flavors, Pretzel Logic co-brand<br />
pretzels in assorted flavors with toppings and dipping sauces and cookies under the name of R.J Cookies, Ltd. Adding<br />
MicroBlast custom blended yogurt and topping as well as 10 oz. yogurt shake. Check Averages: $2.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
249
Personnel |<br />
John Stern, President<br />
Ed Redmond, Senior Vice President of Marketing<br />
Paul Nattis, Vice President of Operations<br />
Vince Michaels, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Freshens Frozen Treats is preparing to roll out store design changes and new products as it enters the second phase of<br />
Project Evergreen, a comprehensive re-imaging initiative calling for new menu boards, products, equipment and training in all<br />
stores every two years. As a result of consumer research and customer interviews, the company is introducing three new<br />
milkshakes and four Microblasts (candy-flavored soft-serve products). The first phase of Project Evergreen was launched in<br />
September 2001. (R&I 7/15/03 p73)<br />
Freshens Frozen Treats does two-thirds of its business in non-traditional settings such as colleges, healthcare and business &<br />
industry. The company plans to add 200 accounts by year’s end, with some 25% of those to be in the college/university<br />
segment. Also targeted for further growth is health care, which presents opportunities as hospitals open more retail operations<br />
in areas such as lobbies, outpatient clinics and medical office buildings. (R&I 7/15/03 p81)<br />
Santa Barbara Municipal Airport hired Creative Host Services of San Diego to operate four foodservice concessions at the<br />
airport. Creative Host said it plans to build a full-service bar, a restaurant called Overlook Café, a Freshens Smoothie<br />
Company unit and a Creative Croissants deli. (NRN 7/21/03 p20)<br />
The University of Pennsylvania signed a contract extension with Aramark that is valued at $16 million. It includes an<br />
investment plan for up to $10 million for foodservice facilities. The contract is for an initial two-year term with options for four<br />
additional two-year terms. Scheduled to debut in August were a new Chick-fil-A outlet, a library café, a coffee cart/cyber café,<br />
a Freshens Smoothies and Ice Creamery and a c-store. Slated to open in October is a diner concept tailored to meet demand<br />
for late-night and weekend dining. Also planned is a renovation of the university’s 1920s Commons residential facility and a<br />
redesign and expansion of the offerings at its McClelland Hall, a grab-and-go outlet. Aramark says the changes have been<br />
designed in response to customer feedback acquired through on-campus market research. (FSD 8/15/03 p10)<br />
Sodexho has completed the first year of its eight-year contract with the U.S. Marine Corps. Worth $850 million, the venture<br />
covers both West Coast and East Coast contracts. In addition, Sodexho recently signed a separate contract to manage<br />
several retail foodservice outlets at the Marine Corps Air Station in Miramar, CA. They include Starbucks, Freshëns, Quiznos,<br />
Taco Bell, KFC, a restaurant at the base golf course and operations in the Enlisted Club and Officers Club. Sodexho uses<br />
Defense Department purchasing specifications and follows recipes from the Armed Forces Recipe System. At selected West<br />
Coast mess halls, Sodexho is running a test of a 21-day-cycle menu rather than the military’s standard 28-day cycle. The test<br />
also allows Sodexho to introduce a few menu items of its own. The Marines are anxious to improve mess hall participation.<br />
Single Marines living on base receive a meal card but on any given day, only about 55% take advantage of their free meals.<br />
The Marine Corps would like to find out why participation is so low and improve it. (NRN 11/24/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
250
Friendly's<br />
Headquarters<br />
1855 Boston Rd., Wilbraham, Massachusetts 1095 USA<br />
Tel: (413) 543 2400 Fax: (413) 543 2880<br />
www.friendlys.com<br />
Ownership: Public<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 645,000 628,000 625,000<br />
Company-owned ($000) 455,000 448,000 525,000<br />
Franchised ($000) 190,000 180,000 100,000<br />
U.S. Number of Units 543 554 576<br />
Company-owned 387 393 449<br />
Franchised 156 161 127<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,182 1,102 1,169<br />
Concept Positioning |<br />
Friendly Ice Cream Corp. operates restaurants specializing in ice cream, sandwiches, and moderately priced meals.<br />
Open for breakfast, lunch and dinner, units are freestanding or in malls. Unit size ranges from 2,200–3,800 sq.ft. for its mall<br />
and strip center locations and 2,400–5,000 sq.ft. for its freestanding sites.<br />
A Manufacturing plant produces its proprietary ice cream and most of the syrups and toppings used in Friendly's restaurants.<br />
In addition, the plant distributes ice-cream products to more than 3,500 supermarkets and retail locations. A limited number of<br />
items, primarily milk, baked goods, eggs and produce, are purchased from local sources designated by Friendly's central<br />
purchasing department.<br />
The Friendly Ice Cream Chain was started by two brothers, Curtis and Prestley Blake in 1935. Their first ice-cream shop<br />
featured 5¢ double-dip cones, but they quickly expanded the menu to include hamburgers and added restaurant locations. By<br />
1974, the Friendly’s operation swelled to nearly 500 locations concentrated throughout the Mid-Atlantic and Northeastern<br />
United States. Hershey Foods Corporation purchased Friendly’s from the Blakes in 1979 and maintained ownership until 1988<br />
when Donald N. Smith purchased Friendly’s from Hershey. In mid-1997, it began franchising with the initial agreement with<br />
DavCo, a Wendy’s franchisee. Later that same year, Friendly’s issued an IPO of some 5 million shares.<br />
In January 2000, Friendly signed a franchising agreement with Kessler Family LLC to develop the chain in New York. The deal<br />
included Kessler purchasing 29 existing units from Friendly as well as adding 15 new units over the next seven years. In<br />
October, Kessler expanded the deal to four more cities with a 12-unit purchase and plans to open another eight. In December<br />
of that same year, its franchising agreement with DavCo was terminated; DavCo planned to close 17 of its units and continue<br />
operating another 31 until new franchisees are found. In April 2001, J&B Restaurant Partners signed an agreement for the<br />
Long Island, NY, market, purchasing an existing 31 units and committing to the development of 29 new units in the next 12<br />
years.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
251
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: ice-cream products, including pies, cakes, and rolls prepackaged for take-home consumption; all menued<br />
separately. Line includes light selections. The 100-item menu also includes burgers, chicken, SuperMelt sandwiches, wraps,<br />
salads, quesadillas, steak, seafood, as well as, dinners that include two sides. Breakfast features eggs and omelets, pancakes<br />
and French toast. <strong>Menu</strong> Prices: $2.50–$10 Check Averages: $6.50.<br />
<strong>Menu</strong> Development |<br />
Friendly’s is now offering a new collection of hot open-faced sandwiches. As part of the launch, the chain is offering a free hot<br />
fudge sundae with the purchase of any of the following: ■ Open-Faced Chili Burger Sandwich—a half-pound burger on grilled<br />
garlic bread, topped with chili, melted Cheddar and Monterey Jack cheeses, diced onions and scallions; served with fries ■<br />
Open-Faced Turkey Sandwich—sliced breast of turkey on toasted white bread with mashed potatoes and turkey gravy; served<br />
with cranberry sauce ■ Open-Faced Meatloaf Sandwich—meatloaf on toasted white bread, topped with brown gravy and<br />
Friendly’s “Fronions” and served with mashed potatoes and corn ■ Open-Faced Country Fried Chicken Sandwich—breaded<br />
chicken on toasted white bread with mashed potatoes, all smothered in country black-pepper gravy; served with corn.<br />
(Company Web Site)<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Friendly’s has added new entrees to drive dinner traffic. They include a Caribbean Chicken and Shrimp dish and a Barbecue<br />
Chicken Platter. (Nation’s Restaurant News, 6/02/03, p 36)<br />
Friendly’s is now offering a Colossal Burger line to boost dinner traffic. Offerings include a Western Barbecue Burger topped<br />
with onion rings, tangy barbecue sauce, spicy Ranchero con Queso and melted Cheddar, as well as a Colossal Garden<br />
Burger with lettuce, tomato, onions and roasted red pepper garlic served on a grilled honey whole-wheat roll. (Nation’s<br />
Restaurant News, 6/02/0,3 p36)<br />
Personnel |<br />
John Cutter, Chief Executive Officer<br />
Paul Hoagland, Chief Financial Officer<br />
Robert Hogan, Chief Marketing Officer<br />
Robert Maglioli, Senior Vice President of Operations<br />
Steven Feyman, Director of Purchasing<br />
Andre Feuhr, <strong>Menu</strong> Development/R&D<br />
News & Other |<br />
Friendly Ice Cream Corp. for the third quarter ended September 28, reported same-store sales increased 3.5% compared to<br />
the same quarter last year. Revenues increased 1.3% to $160.4 million, and net income increased 52% to $5.3 million. (NRN<br />
Daily NewsFax 10/24/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
252
<strong>RISE</strong> COMPANY PROFILE<br />
Friendly Ice Cream Corp. for the third quarter ended September 28, reported revenues increased 1.3% to $160.4 million<br />
compared to the same quarter last year. Same-restaurant sales increased 3.5%. (Nation’s Restaurant News 11/3/03 p20)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
253
Frisch's Restaurants, Inc.<br />
Headquarters<br />
2800 Gilbert Ave., Cincinnati, Ohio 45206 USA<br />
Tel: (513) 961 2660 Fax: (513) 559 5160<br />
www.frischs.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Big Boy (Frisch's)<br />
Golden Corral (Frisch's)<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 257,000 230,000 -<br />
Company-owned ($000) 217,000 190,000 -<br />
Franchised ($000) 40,000 40,000 -<br />
U.S. Number of Units 141 135 -<br />
Company-owned 107 99 -<br />
Franchised 34 36 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Frisch's Restaurants currently are franchisees of two midscale restaurant brands: Big Boy restaurants under agreements with<br />
Elias Brothers and Golden Corral through agreements with its parent. Its agreements also let Frisch's sub-franchise Big Boys.<br />
Frisch's Big Boys are full-service operations that serve breakfast, lunch, dinner, and snacks. Most have drive-through service.<br />
Units average 5,610 sq. ft. and seat 105–200 persons. The interiors feature stained glass, bent wood chairs, oak wood and<br />
ceramic tile. Kitchens have been updated and enclosed to prevent noise. Exteriors feature red brick and tiles and have striped<br />
canopies, a two-story entrance, neon signs and drive-through windows. Many also have themed interiors associated with the<br />
communities in which they are located. For example, Dayton’s location, home of the Wright brothers, hosts an aviation theme.<br />
A commissary in Cincinnati provides foods, beverages and other supplies for half of the Big Boy restaurants.<br />
The company’s Golden Corrals are part of a 26-unit franchising agreement with that chain to operate in certain markets in<br />
Ohio, Kentucky and Indiana—principally the greater metropolitan areas of Cincinnati, Dayton and Louisville. The restaurants,<br />
which average 9,952 sq. ft. and seat 348, have distinctive exteriors and interior designs and are open seven days a week for<br />
lunch and dinner as well as a weekend breakfast buffet.<br />
In addition, Frisch’s entered into a second area development agreement with Golden Corral for 15 additional Golden Corrals in<br />
the Cleveland and Toledo, OH, markets in July 2000. All 41 units, those from this recent agreement and those from the first,<br />
are to be open by December 31, 2007. Four units are to be added in 2003.<br />
Frisch's recently completed a remodeling program for its Golden Corral restaurants. As part of the redesign, larger charbroil<br />
grills were placed directly on the buffet line, allowing customers to be served grill-to-order steaks from the buffet line.<br />
Frisch's started in 1905 when Samuel Frisch opened his lunch stand on Freeman Ave. In 1921, his three sons joined him in<br />
the business. In 1946, son Dave visited Glendale, CA, where a man named Bob Wian was selling a double-decker hamburger<br />
called "Big Boy." A franchise agreement was signed in 1946 and Frisch's incorporated in 1947. Its Golden Corral agreements<br />
were first developed in 1998.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
254
Personnel |<br />
Jack Maier, Chairman<br />
Criag Maier, Chief Executive Officer<br />
Donald Walker, Chief Financial Officer<br />
Paul McFarland, Chief Operating Officer<br />
Karen Maier, Vice President of Marketing<br />
Gary Frazee, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Frisch's Restaurants reported a 22% increase in its regular quarterly dividend. (NRN Daily NewsFax 9/5/03)<br />
Frisch’s Restaurants Inc. for the first-quarter, reported net income increased 13% to $3.3 million from $2.9 million compared to<br />
the same quarter a year ago. Revenues increased 10% to $77.4 million. (NRN Daily NewsFax 10/20/03)<br />
Frisch’s Restaurants Inc. for the first quarter ended September 21, reported revenues increased 10% to $77.4 million<br />
compared to the same quarter last year. (Nation’s Restaurant News 11/10/03 p45)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
255
Fuddruckers<br />
Headquarters<br />
66 Cherry Hill Dr., Beverly, Massachusetts 01915 USA<br />
Tel: (978) 907 1300 Fax: (978) 778 1139<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 278,300 262,400 250,000<br />
Company-owned ($000) 156,700 146,200 137,500<br />
Franchised ($000) 121,600 116,200 112,500<br />
U.S. Number of Units 202 203 205<br />
Company-owned 110 107 107<br />
Franchised 92 96 98<br />
International Sales ($000) 8,500 8,500 7,100<br />
International Units 5 5 5<br />
Average Sales/Unit ($000) 1,377 1,293 1,285<br />
Concept Positioning |<br />
Fuddruckers operates and franchises a chain of self-service upscale hamburger restaurants that appeal to a broad audience.<br />
Stores are open daily from 11:00 a.m. to 11:00 p.m. and have a “kids eat free” program Monday–Thursday after 4:00 p.m.<br />
Food is cooked to order from fresh ingredients. It has also begun co-branding tests using the La Salsa Fresh Mexican Grill<br />
concept.<br />
Restaurants are freestanding or within a shopping center and range from 4,800–8,000 sq. ft., with seating for 160–300<br />
persons. The typical Fuddruckers has an exhibition food preparation area that includes a bakery and a butcher shop where<br />
customers can see bakery goods being made and meat being cut and ground. Another area has an open grill where items are<br />
cooked. It also includes a display area for customer garnishing of entrees as well as the dining area with tables and booths.<br />
Some have separate bar and outdoor patio areas. Decor will vary, as well as exteriors, although the latter is easily identifiable<br />
with a backlit yellow awning. However, new units will incorporate a standard exterior highlighting its Texas heritage.<br />
A new prototype is also being designed to meet customers' needs. A Detroit unit features a take-out window, which accounts<br />
for approximately 30%–35% of orders.<br />
The company was incorporated in Texas in March 1979 by Philip J. Romano, the owner and operator of fine-dining restaurants<br />
in San Antonio and Florida. The first restaurant opened in March 1980 in San Antonio. In August 1983, the first franchised<br />
store opened in Baton Rouge. The following November, the company made an initial public offering. In mid-1997, then parent<br />
Daka International was acquired by Compass Group PLC and its restaurant holdings spun-off into a new publicly held<br />
company, Unique Casual Restaurants. In mid-1998, Unique sold the chain to King Cannon Inc.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
256
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: ⅓–1 lb hamburger cooked to order on black iron grill and served on freshly baked buns (accounts for some<br />
65% of sales). Also menus rib eye steak, grilled chicken breast and fish sandwiches, New York-style hot dogs, chicken or beef<br />
taco salads, fries, onion rings, dinner side salad and other sides. Customers garnish entrees with wide range of items. Fresh<br />
bakery items also menued. Recent additions include big bowl salads, steakhouse-style platters and a Brownie Blast<br />
SundaeSome locations also adding ostrich burgers and alb New York style hot dogs. Beer and wine at all units; some full<br />
liquor service. <strong>Menu</strong> Prices: $3.50–$6.65. Check Average: $6.28.<br />
<strong>Menu</strong> Development |<br />
Fuddruckers has developed a new in-store concept featuring gourmet ice cream. The Fuddruckers Encore Bakery and<br />
Creamery is included in a new unit in Round Rock, TX, and boasts18 flavors of gourmet ice cream made on the premises.<br />
Flavors range from vanilla, strawberry and chocolate to pumpkin pie, pistachio and mocha. Guests can also choose from a<br />
range of toppings and mix-ins such as brownie and cookie bits, gummy candies, branded cookies and candies and fresh fruits.<br />
A frozen granite counter is used to mix ice cream and the various additions. Other offerings include a Fudds Brownie Sundae<br />
and Rice Krispie Treat a la mode. This is not the first treat initiative by Fuddruckers. Last year it introduced old-fashioned<br />
shakes made with hand-dipped ice cream. In other menu news, the chain has launched a Mardi Gras-themed promotion that<br />
will run through the beginning of April. <strong>Menu</strong> items include: crawfish tails fried in savory Cajun batter and served atop a<br />
specially-spiced Fuddrucker burger; the same crawfish atop a chicken sandwich topped with Pepper Jack cheese and secret<br />
spicy Fudds Cajun sauce; and a Voodoo Shake. (Restaurant Business Daily News, PR Newswire, Foodservice.com)<br />
Fuddruckers is offering a Fuddito Burger as a limited-time offer through May 27. The sandwich combines the flavors of corn<br />
chips and chili. Available in sizes ranging from one-third to one-pound, it is topped with Cheddar cheese, chili and crunchy<br />
corn chips. Prices range from $5.59–$6.19. (PR Newswire<br />
Fuddruckers introduced two new chicken salads. A Crispy Chicken Salad combines fried chicken, mixed greens, hard-boiled<br />
eggs, tomatoes, Cheddar Jack cheese and honey mustard dressing, while an Asian Salad features Asian-glazed orange<br />
chicken breast, mixed greens, mandarin oranges, rice noodles, tomato and sesame dressing. (Nation’s Restaurant News,<br />
6/23/03, p24)<br />
Fuddruckers will introduce a Mocha Mojo Shake August 20 as part of its JamaicaFest promotion. Priced at $3.19, the drink<br />
features coffee and chocolate flavors. It will be available through September. (Restaurant Business <strong>Menu</strong> Strategies<br />
Newsletter, 7/29/03)<br />
Fuddruckers will launch two Caribbean-influenced sandwiches as part of its JamaicaFest promotion, set to begin August 20.<br />
Its JamaicaMeCrazy Burger ($5.69) is topped with smoked bacon, pepper Jack cheese and spicy Caribbean sauce. The Spicy<br />
Caribbean Chicken Sandwich ($6.09) is topped with grilled pineapple rings and the spicy Caribbean sauce. Both will be<br />
offered through September. (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 7/29/03)<br />
Fuddruckers introduced a $5.99 Salmon Burger at branches located in Texas and Southern California. The grilled salmon<br />
patty is topped with tartar sauce and served with a lemon wedge. (NRN Daily NewsFax 09/11/03)<br />
Fuddruckers is testing a salmon burger in Southern California and two Texas markets. The $5.99 sandwich is made with wild<br />
Alaska salmon that is certified as being raised in an environmentally friendly manner. It is served with tarter sauce and a lemon<br />
wedge. Introduced in mid-August, it is expected to be in test for about six months. (Nation’s Restaurant News 9/29/03 p36)<br />
Personnel |<br />
Bryce King, Chief Executive Officer<br />
Keith Schutz, Chief Financial Officer<br />
Scott McCullough, Vice President of Marketing<br />
Frank Morales, Chief Operating Officer<br />
Ed Patton, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
257
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Fuddruckers is testing ice cream parlors at two restaurants in Texas and Minnesota. Fudds Encore Bakery and Creamery<br />
offers 18 flavors of gourmet ice cream made on-premise along with the 200-unit chain’s brownies, cookies and other treats.<br />
Customers can build treats by having brownies, candy and fresh strawberries mixed into their ice cream. Ice cream mixes are<br />
made on frozen granite counters that preserve the texture of the frozen treat as items are folded into it. Prices range from<br />
$2.59–$5, depending on how many mix-ins or toppings customers order. The chain also plans to market the creamery as a<br />
destination concept that will appeal to those who want dessert but not a meal. The Minnesota restaurant in the suburb of<br />
Roseville began operating its creamery in January and the Texas unit, located in Round Rock, opened in February.<br />
Fuddruckers plans to market the concept as a sub-brand and expects to add other company and franchised outlets. Two or<br />
three more of the ice cream outlets are expected to open this spring, with locations yet-to-be-determined. (NRN 2/24/03 p16)<br />
Fox Sports Grill will open a second unit in June 2003 in Irvine, CA. The concept, which debuted in November 2002 in<br />
Scottsdale, AZ, was developed by Bill Freeman in partnerships with financier Bill Dallas in their Westlake, CA-based B&B<br />
Restaurant Ventures. Freeman said that based on the initial unit’s first six months of operation, that site should do more than<br />
$8 million in sales in its first year. Freeman is a former executive of both ESPN Zone and Champps Americana and a former<br />
Fuddruckers franchisee. The second Fox Sports Grill will be located in a vacated, two-level, 27,000-sq.ft. space at the Irvine<br />
Spectrum entertainment mall. Occupying 50% more space than the Arizona location, it will include a bowling alley as well as<br />
billiards and other games. Both units’ dining rooms will be television-free to appeal to casual-dining fans. Fox Sports also<br />
licenses its name to seven Fox Sports Skybox locations. (NRN 5/19/03 p181)<br />
Koo Koo Roo entered an agreement to sell its assets to Fuddruckers Inc. for about $4 million. Koo Koo Roo recently filed for<br />
Chapter 11 bankruptcy. (NRN Daily NewsFax 10/13/03)<br />
Fuddruckers plans to open 60 more units over the next three years. Three outlets are scheduled to open by year’s end. One of<br />
the planned locations in Austin, TX, will feature new offerings such as low-fat ostrich burgers and a dozen flavors of ice cream<br />
made each day on the premises. (FIR 9/1/03 p5)<br />
Fuddruckers ceased negotiations on purchasing the Hamlet Group. The Group recently filed for Chapter 11 bankruptcy<br />
protection. (RestaurantBiz.com 10/30/03)<br />
Prandium is selling its Chi-Chi’s, Koo Koo Roo and Hamburger Hamlet brands. Prandium, which filed for Chapter 11 protection<br />
on October 8, already has potential buyers for the three brands. According to Prandium CEO Hugh Hilton, Chi-Chi’s has<br />
entered into a nonbinding letter of intent with CC Acquistion Holding Co. LLC, whose majority owner is Worldwide<br />
Entertainment Inc. Koo Koo Roo and Fuddruckers have entered into a definitive asset purchase agreement, and The Hamlet<br />
Group is also reported to be in negotiations with Fuddruckers. (NRN 10/20/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
258
Furr's/Bishop's Cafeterias<br />
Headquarters<br />
3001 E. George Bush Hwy., Richardson, Texas 75082 USA<br />
Tel: (972) 808 2923 Fax: (972) 808 5713<br />
Ownership: Public<br />
Segment: Limited Service Cafeteria Buffet<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 165,000 184,000 195,000<br />
Company-owned ($000) 165,000 184,000 195,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 75 91 96<br />
Company-owned 75 91 96<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,800 2,000 2,031<br />
Concept Positioning |<br />
Furr's/Bishop's Cafeterias is the second-largest operator of cafeterias in the U.S. All cafeterias are open seven days a week<br />
for lunch and dinner, and a few also serve breakfast. Food is prepared for serving by each individual cafeteria. Although<br />
patrons serve themselves, a dining room attendant is available to help with a tray and to offer complimentary refills of coffee<br />
and tea.<br />
The cafeterias are either freestanding or located in shopping malls and average 10,000 sq. ft. Seating capacities are 200–300<br />
customers. Interiors of Furr's feature carpeting and a center hearth. All Bishop's units are different but share a homey<br />
atmosphere which is created by earth-tone colors, beamed ceilings, patterned wall coverings, carpeting, chandeliers, and<br />
shirred curtains and side-drapes at the windows.<br />
Over the last three years, the company has spent over $30 million on capital expenses to maintain and remodel existing units.<br />
In June 2000, it debuted a new prototype under the name Furr’s Family Buffet. The 11,000 sq. ft. unit seats 420. It also has a<br />
slightly higher price point, with check averaging $6.29.<br />
Dynamic Foods, Lubbock, TX, is also operated by the company and provides about 85% of the food and supplies required in<br />
its units. Dynamic also sells pre-cut produce, bakery items, meats and seafood and various prepared foods to outside<br />
customers.<br />
In April 2002, Furr's completed its menu upgrade. Offering larger portions and healthier options, the new menu also comes in<br />
three options: a regular entrée, two sides and a roll for $4.49 or a regular entrée, four sides and a roll for $5.99 or any number<br />
of items plus seconds for $6.99, $6.49 for senior citizens.<br />
Furr's Cafeterias began in 1946. Bishop Buffets was founded in 1920. In December 1986, the two brands were acquired by its<br />
current parent. Its corporate structure has experienced several name changes, with the current form adopted in 1999.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
259
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Over 100 items on a serving line: 12–25 soups and salads, 8–14 entrees include chicken, beef, fish and seafood and pastas,<br />
10–12 vegetables, 5–7 breads, 12–25 desserts including fresh baked pies and cakes, 5 non-alcoholic beverages and a<br />
number of condiments. Breakfast items: biscuits with gravy, eggs, fried salt pork, sausage, bacon, pancakes, fresh fruit and<br />
juices. Has both fixed all-you-can-eat and a la carte pricing. Check Averages: $6.<br />
Personnel |<br />
Damien Kovary, Chairman<br />
William Snyder, Chief Executive Officer<br />
Nancy Ellefson, Vice President of Finance<br />
Jill Laird, Director of Marketing<br />
Michael Blasdell, Vice President of Purchasing<br />
News & Other |<br />
Furr’s Restaurant Group Inc. filed a plan of reorganization with the U.S. Bankruptcy Court in Dallas. It calls for either a courtsupervised<br />
sale of the company or a reorganization that would restructure the company’s debts, reject “burdensome” leases<br />
and other contracts and issue common stock to a trust that would benefit unsecured creditors and existing stockholders,<br />
whose current shares would be cancelled. Furr’s, which operates 55 cafeterias and the Dynamic Foods commissary business,<br />
filed for Chapter 11 bankruptcy protection in January. The company expressed optimism about the possibility of arranging a<br />
sale through auction procedures. (NDNF 4/4/03)<br />
Furr’s Restaurant Group will sell its assets to CIC-Buffet Partners LP. Currently in Chapter 11 bankruptcy protection, its<br />
principal operating subsidiary, Cafeteria Operators LP, signed an asset-sale agreement with CIC-Buffet Partners L.P. The deal<br />
is valued at about $30 million, with $24.5 in cash, $3 million in secured subordinated promissory notes and the assumption of<br />
certain liabilities. The Bankruptcy Court for the Northern District of Texas approved procedures that allow qualified bidders to<br />
make higher offers to purchase Cafeteria Operators assets at an auction planned for September but its ruling gives CIC<br />
priority status. Furr’s operates 54 cafeterias in five southwestern and western states. (NRN 7/21/03 p3; FIR 7/14/03 p7)<br />
Furr’s Restaurant Group completed the sale of substantially all of its assets to Buffet Partners L.P. in a deal worth about $29<br />
million. Also included in the deal are Dynamic Foods, a food preparation, processing and distribution division, and three Stevie<br />
B’s Southern Buffets in Central Florida. Buffet Partners L.P. is a new company affiliated with Cardinal Investment Co. Inc. of<br />
Dallas. William Snyder, Furr’s acting chief executive, said prior to the sale’s completion that the new owners intend to expand<br />
a scatter bar Furr’s Family Buffet prototype that the 55-unit cafeteria chain is testing in El Paso. During the last five years, the<br />
total number of Furr’s restaurants has dropped from 91 to 55. (NDNF 10/3/03; NRN 9/29/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
260
<strong>RISE</strong> COMPANY PROFILE<br />
Fuzio Universal Pasta/Other Concepts<br />
Headquarters<br />
2000 Powell St. Suite 200, Emeryville, California 94608 USA<br />
Tel: (510) 768 1400 Fax: (510) 768 1460<br />
www.fuzio.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 16,500 12,500 13,262<br />
Company-owned ($000) 13,000 11,500 12,124<br />
Franchised ($000) 3,500 1,000 1,138<br />
U.S. Number of Units 9 6 10<br />
Company-owned 6 5 9<br />
Franchised 3 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,685 1,650 1,347<br />
Concept Positioning |<br />
Company officials see the possibility that Fuzio’s, distinguished by its scratch cooking in display kitchens and casual dining<br />
atmosphere, could develop into a mix of company and franchised operations over time. The 6-location chain is part of the<br />
Chevy’s Inc.<br />
<strong>Menu</strong> Positioning |<br />
The menu features selection of pastas with international flavor combinations such as Spicy Chicken, Sausage Penne and<br />
Firecracker Pork Fusilli (corkscrew pasta with tender ginger-braised pork, firecracker-hot habanera pesto and sour cream).<br />
Also on the menus are salads, chilled pastas, focaccia and panini.<br />
News & Other |<br />
Chevys Inc. filed for Chapter 11 protection after Consolidated Restaurant Operations suspended its planned acquisition of the<br />
Chevys and Fuzio chains. It cited California’s pending mandate for employer-paid health insurance and the state’s political and<br />
economic climate as reasons for the switch. The insurance mandate would begin in 2006 and include coverage for part-time<br />
workers. About 70 of Chevys and Fuzio Universal Pasta’s 129 units are in California. Consolidated also cited a proposition in<br />
San Francisco that would raise that city’s minimum wages. Chevys Inc. also owns Rio Bravo, which has been performing<br />
poorly, while Chevys and Fuzio produce strong results, according to the company. (NDNF 10/14/03 & 9/29/03)*See related<br />
brief in Noteworthy section.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
261
Garcia's Mexican Restaurants<br />
Headquarters<br />
1220 South Sante Fe, Edmond, Oklahoma 73003 USA<br />
Tel: (405) 705 5000 Fax: (405) 705 5001<br />
www.eats-inc.com<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 22,000 25,219 26,000<br />
Company-owned ($000) 20,000 24,431 25,000<br />
Franchised ($000) 2,000 788 1,000<br />
U.S. Number of Units 6 18 18<br />
Company-owned 4 17 17<br />
Franchised 2 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,350 1,401 1,470<br />
Concept Positioning |<br />
Eateries, Inc., through its Fiesta Restaurants, Inc. subsidiary owns and operates Garcia’s Mexican Restaurants, a casual<br />
dining chain positioned as traditional Mexican restaurants serving authentic, homemade fare. A typical units has a total area of<br />
5,000–10,000 sq. ft. with seating for 200–250 in the dining areas and 75–125 in the bar area. Most units are freestanding, at or<br />
near shopping centers. The decor features white stucco walls, hand-painted tiles, bright colors and Mexican handicrafts<br />
(paintings, serapes, sombreros, and paper-mache parrots).<br />
In 2000, it debuted a new prototype and decor package that is reminiscent of turn-of-the-century Southwestern homes,<br />
complete with European-style furniture, Spanish colonial and Native American light fixtures, paintings and accessories. The<br />
unit, a mall location that is around 4,800–6,200 sq. ft. with about 180 seats, is a dramatic departure from its usual unit size and<br />
adherence to freestanding sites. Since then, the company adopted a new growth strategy. Thus, its current plans are to focus<br />
on the development of franchising agreements and is not adding company-owned units.<br />
In 1998, a new Garcia's concession facility in BankOne Ball Park, home of the Arizona Diamondbacks (a Major League<br />
Baseball team), in Phoenix was opened.<br />
Eateries, Inc. was incorporated in Oklahoma in June 1984. In November 1997, it completed the acquisition of Famous<br />
Restaurants Inc., Phoenix, parent of Garcia’s, Casa Lupita (sold shortly thereafter) and Carlos Murphy’s (now either closed or<br />
converted to Garcia’s). Each of the chains dates as far back as the late 1950s.<br />
<strong>Menu</strong> Positioning |<br />
Traditional Mexican entrees, salads, combination platters and variety of specialty dishes such as Tampico Stuffed Chicken<br />
with jalapeno cream cheese and espinaca con queso or Fire Grilled Margarita Chicken. Desserts include warm apple flautas<br />
and Cafe-Mocha Mudpie. Full liquor service available. <strong>Menu</strong> Prices: $3.75–$9.95. Check Averages: $9.75.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
262
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Eateries Inc. will go private by terminating the registration of its securities. The company noted in a written statement that its<br />
decision to go private was “based on the progressively higher costs and lack of associated benefits small public companies<br />
face in light of the recent changes imposed under the new Sarbanes-Oxley regulations.” The company’s common stock closed<br />
at $3.40 on the OTC Bulletin Board on November 19. Eateries owns, operates, franchises and licenses 61 restaurants in 21<br />
states. Its chains are Garfield’s Restaurant and Pub, Garcia’s Mexican Restaurants and Pepperoni Grill. (NRN 12/1/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
263
Garfield's Restaurant & Pub<br />
Headquarters<br />
1220 South Sante Fe, Edmond, Oklahoma 73003 USA<br />
Tel: (405) 705 5000 Fax: (405) 705 5001<br />
www.garfields.net<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 79,000 77,970 78,000<br />
Company-owned ($000) 69,000 70,239 71,000<br />
Franchised ($000) 10,000 7,731 7,000<br />
U.S. Number of Units 56 54 57<br />
Company-owned 47 48 50<br />
Franchised 9 6 7<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,460 1,444 1,419<br />
Concept Positioning |<br />
Eateries, Inc. owns and operates as well as franchises the Garfield's Restaurant & Pub chain. The Garfield's concept is a fullservice,<br />
family-oriented operation open for lunch, dinner, late-evening meals and Sunday brunch. Some locations also offer<br />
live entertainment on weekends.<br />
Garfield's is named and themed after the company’s mythical character in the 19th Century, Casey Garfield, who traveled the<br />
world. Sizes range from 4,500–5,500 sq. ft. with average seating of 200 patrons. Interiors have a turn-of-the-century décor that<br />
highlights the travels of Casey, including exhibits, photographs, souvenirs and other travel related objects. Tables are covered<br />
with paper and have crayons on them to encourage customer doodling. Most also include a sports bar lounge that features<br />
national and local sports memorabilia and televisions for viewing sporting events.<br />
Eateries was incorporated in Oklahoma in June 1984 by Vincent F. Orza, Jr., Edward D. Orza and James M. Burke. The first<br />
Garfield's opened in November of that same year. The company made its initial public stock offering in 1986. In 1995, it<br />
acquired Pepperoni Grill in Oklahoma City. In mid-1999, the company acquired two Bellini’s Ristorante & Grill and one<br />
Tommy’s Italian-American Grill from founder Tommy Byrd. Byrd, but sold them back to Byrd in early 2001 as part of its plan to<br />
focus on franchising its existing chain brands.<br />
<strong>Menu</strong> Positioning |<br />
Offers more than 75 items including prime rib, seafood, chicken, hamburgers, ethnic dinners including Chinese, Tex-Mex and<br />
Italian and sandwiches and salads. Full liquor service; features more than 50 "beers of the world". Check Averages: $7–$8.15<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
264
Franchise Activity |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Garfield’s Restaurant and Pubs signed franchisee Mike Denney to a development deal calling for the opening of 3 units in<br />
Arkansas and southwest Missouri. The first opening will be in Fort Smith, AR. (Franchise Times 9/03 p23)<br />
Personnel |<br />
Garfield's promoted Gary Johnston to regional director of operations. (Nation’s Restaurant News 9/15/03 p 60)<br />
News & Other |<br />
Eateries Inc. will go private by terminating the registration of its securities. The company noted in a written statement that its<br />
decision to go private was “based on the progressively higher costs and lack of associated benefits small public companies<br />
face in light of the recent changes imposed under the new Sarbanes-Oxley regulations.” The company’s common stock closed<br />
at $3.40 on the OTC Bulletin Board on November 19. Eateries owns, operates, franchises and licenses 61 restaurants in 21<br />
states. Its chains are Garfield’s Restaurant and Pub, Garcia’s Mexican Restaurants and Pepperoni Grill. (NRN 12/1/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
265
Godfather's Pizza<br />
Headquarters<br />
9140 W. Dodge Road, Omaha, Nebraska 68114 USA<br />
Tel: (402) 391 1452 Fax: (402) 255 2685<br />
www.godfathers.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 308,000 312,400 329,000<br />
Company-owned ($000) 53,000 60,000 69,000<br />
Franchised ($000) 255,000 252,400 260,000<br />
U.S. Number of Units 600 565 576<br />
Company-owned 90 95 117<br />
Franchised 510 470 459<br />
International Sales ($000) 500 500 500<br />
International Units 1 1 1<br />
Average Sales/Unit ($000) 500 555 589<br />
Concept Positioning |<br />
Godfather's Pizza restaurants are family-oriented, self-service operations serving lunch and dinner. Carryout orders account<br />
for 30% of sales. Most locations feature video and pinball games. The customer base ranges in age from pre-teen to mid-30s,<br />
but advertising is targeted toward the upper end of the 18- to-34 age group. Most units are located in shopping centers. Size<br />
varies from 2,600–3,600 sq. ft., with seating for about 135.<br />
Founded in 1973 by Willy Theisen and a partner, the Godfather's Pizza name was adopted in 1976 following Theisen's<br />
partnership buyout. In 1975, the chain offered its first franchise. The first international unit opened in December 1981.<br />
Godfather's went through several ownership changes in the mid-1980s. In September 1988, a leveraged buyout led by current<br />
chairman Herman Cain was completed, forming its current ownership.<br />
Its current president and chief executive officer is Ronald B. Gartlan.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: thick-crust pizza with various toppings in 6-, 10-, 13-, 15- and jumbo 18-inch sizes. Varieties include combo<br />
topped with beef, sausage, mushroom, onion, black olives and pepperoni; the Taco with hot sauce, beef, onion, lettuce,<br />
tomato, Cheddar and mozzarella cheese; Super Hawaiian which combines ham, pineapple, bacon, green pepper and<br />
mozzarella cheese. An all-you-can-eat buffet, bread sticks, dessert pizzas and salad bar also available. Beer and other nonalcoholic<br />
beverages served. Check Averages: $9–$10.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
266
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Godfather’s Pizza is currently promoting two new items. Its dessert options now include Cinnamon Honey Crisps made on a<br />
thin crust pizza base, while its pizza choices have been expanded to include a new Taco Pizza. (Nation’s Restaurant News)<br />
Pizzas are increasingly carrying a broad range of ingredients, creating pies that range from traditional basics to innovative<br />
signatures. At Godfather’s, offerings range from simple Humble Pie with sausage, peppers and onions to the more upscale<br />
Chicken Artichoke pizza with white garlic sauce, artichokes and red onions, which is similar to the designer pizzas popularized<br />
by chef Wolfgang Puck. Bahama Breeze has a Four Tomato Pizza that boasts vine-ripened Roma, yellow pear, grape and<br />
sun-dried tomatoes, and Red Lobster has a thin-crust Lobster pizza topped with basil. Specialty cheeses are also becoming<br />
more common. Dave & Buster’s has a Shiitake Boursin pizza and Napa Valley Grill in Chicago offers a Brie and Duck Confit<br />
pie on a seasonal basis. (Nation’s Restaurant News 12/1/03 p35)<br />
Personnel |<br />
Herman Cain, Chairman<br />
Ronald Gartlan, Chief Executive Officer<br />
Rich Ramm, Chief Financial Officer<br />
Bruce Cannon, Senior Vice President of Operations<br />
Terry Curry, Director of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
267
Golden Corral<br />
Headquarters<br />
5151 Glenwood Ave., Raleigh, North Carolina 27612 USA<br />
Tel: (919) 881 5143 Fax: (919) 881 5252<br />
www.goldencorralrest.com<br />
Ownership: Private<br />
Segment: Limited Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,156,535 1,029,838 966,218<br />
Company-owned ($000) 353,193 316,664 323,677<br />
Franchised ($000) 803,342 713,174 642,541<br />
U.S. Number of Units 470 465 452<br />
Company-owned 118 122 120<br />
Franchised 352 343 332<br />
International Sales ($000) - - 1,285<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,836 2,647 2,697<br />
Concept Positioning |<br />
Golden Corral restaurants are moderately priced, family buffet and grill restaurants without liquor service. Refills for soda,<br />
coffee and tea are free.<br />
All units are freestanding and feature a contemporary brick, wood and glass design. Sizes range from 5,200 sq. ft. to 10,000<br />
sq. ft., with seating for 190–450. The buffet offers steak every night, in addition to a large variety of other meats, and hot<br />
vegetables. The chain has also expanded its use of on-premise bakeries and custom cooking sites. To further stress its<br />
“freshness” strategy, mashed potatoes are made from scratch every night and food preparation is performed in an<br />
environment exposed to guests.<br />
Expansion strategies include continued development of the buffet operations in areas with mass-market appeal. Most of the<br />
growth will be through franchise units in the Midwest, Pacific Northwest and California.<br />
James Maynard and Bill Carl founded the company in 1972. The present corporate name was adopted in 1977. Maynard<br />
remains active as chairman; Ted M. Fowler is president and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature item is the Golden Choice Buffet, which features steak on the grill every night, carved meats, pot roast, fresh<br />
rotisserie chicken, fried chicken, a large variety of other chicken and seafood/fish selections, fresh hot vegetables, pastas,<br />
soups, and pizzas. Every 15 minutes piping hot yeast rolls, another signature item, are served. The Brass Bell Bakery &<br />
Dessert Café features homemade cakes and pies, cookies and brownies, puddings and ice cream.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
268
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Golden Corral has reintroduced its Golden Sunrise Breakfast Buffet after a revamp. New offerings include blueberry and<br />
chocolate chip pancakes, apple and cherry turnovers, glazed donuts, two types of quiche and Eggs Benedict. Ham and pork<br />
loin grilled on a broiler were also added. The buffet is priced at $5.89. (Restaurant Business <strong>Menu</strong> Strategies Newsletter,<br />
7/29/03)<br />
Golden Corral is emphasizing broiled meats in its Steaks Plus Ribs Promo. Offerings include all-you-can-eat sirloin steaks and<br />
barbecue ribs, each carved and finished on the broiler and priced at $8.19. The effort runs through August. (Restaurant<br />
Business <strong>Menu</strong> Strategies Newsletter, 7/29/03)<br />
Personnel |<br />
Theodore Fowler, Chief Executive Officer<br />
Lamar Bell, Chief Financial Officer<br />
Lance Trenary, Senior Vice President of Operations<br />
Bob McDevitt, Vice President of Marketing<br />
News & Other |<br />
The 100 largest U.S. restaurant companies in 2002 matched their 2001 performance, according to <strong>Technomic</strong> Inc. The<br />
aggregate annual rate of growth for those top operators was 4.7%. Their U.S. systemwide sales rose to $145.8 billion, a $6.6<br />
billion gain over the same chains’ 2001 results. The highest rate of growth in 2002 was in the “bakery/other sandwich”<br />
category, which grew 13.7%. The doughnut category was up 13%. The “broad menu” as well as Italian categories had sales<br />
growth that topped 8%. Among the fastest-growing chains were Starbucks, Ruby Tuesday, Subway, Chili’s Grill & Bar, Golden<br />
Corral and Sonic, according to <strong>Technomic</strong>. (NDNF 5/8/03)<br />
Golden Corral Corp. chief executive Ted Fowler was awarded the Silver Plate Award by the International Foodservice<br />
Manufacturers Association. Other recipients include: Chipotle Mexican Grill founder and chief executive Steve Ells; Bert<br />
Cutino, partner of the Sardine Factory restaurant in Monterey, CA; Joe Wancha, vice president and general manager for the<br />
Historic Mission Inn in Riverside, CA; Lee Cockerell, vice president of foodservice for Walt Disney World Resorts in Kissimee,<br />
FL; Todd Foutty, foodservice director for Metrohealth Medical System in Cleveland; Dennis Barrett, foodservice director for<br />
Dallas Public Schools; Michael Bradley, auxiliary-services director at Ashland University in Ashland, OH; and Julienne Stewart,<br />
foodservice director, SAS Institute, Cary, NC. The Silver Plate Awards dinner will be held in Chicago May 19. (NRN 3/3/03 p4)<br />
Golden Corral for the third quarter ended September 10, reported systemwide sales increased 9.3% to $302.5 million from<br />
$267.7 million compared to the same quarter a year ago. Same-store sales increased 5.4% in the third-quarter. (NRN Daily<br />
NewsFax 9/30/03)<br />
Golden Corral for the first-quarter, reported same-store sales increased 6.6%. (NRN Daily NewsFax 10/20/03)<br />
Golden Corral plans to develop its first model of a new prototype facility. The facility will display ethnic foods separately, add<br />
new ethnic-theme food offerings and updated décor. (Nation’s Restaurant News 11/10/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
269
Good Eats<br />
Headquarters<br />
12200 Stemmons Freeway Suite 100 PO Box 819-017, Dallas, Texas 75234<br />
USA<br />
Tel: (972) 241 5500 Fax: (972) 888 8198<br />
www.croinc.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 18,000 19,000 18,000<br />
Company-owned ($000) 16,500 17,000 16,000<br />
Franchised ($000) 1,500 2,000 2,000<br />
U.S. Number of Units 13 14 14<br />
Company-owned 12 13 13<br />
Franchised 1 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,300 1,307 1,230<br />
Concept Positioning |<br />
Part of Consolidated Restaurant Operations, Inc. (CRO), Good Eats was founded in 1986 by Gene Street. It features grilled<br />
chicken, steak and chicken-fried steak, with 11 sites in the Dallas-Fort Worth area and two in the Houston area.<br />
CRO operates 137 full-service and 37 franchise, casual-dining restaurants located in 18 states and Canada. Other brands<br />
include Spaghetti Warehouse, El Chico, Cantina Laredo, Casa Rosa and Lucky's.<br />
<strong>Menu</strong> Positioning |<br />
Signature entrée is chicken fried steak, which is deep-fried and includes cream gravy. Other menu items include mesquitegrilled<br />
chicken, steaks, pork chops, seafood such as rainbow trout as well as burgers and chicken sandwiches. Most entrees<br />
are served with choice of two vegetables. Appetizers include homemade salsa and chips, stuffed jalapenos and beer-battered<br />
fried cheese, as well as soups and salads. The lunch menu features daily blackboard specials. Full liquor service is available.<br />
News & Other |<br />
Chevys announced it will be acquired by Consolidated Restaurant Operations, Inc., the operator of eight concepts, including El<br />
Chico, Cantina Laredo, The Spaghetti Warehouse, Good Eats, Cool River Café, III Forks, Lucky's and Silver Fox. Terms were<br />
not disclosed. (Company Release 6/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
270
<strong>RISE</strong> COMPANY PROFILE<br />
Gordon Biersch/Big River Breweries<br />
Headquarters<br />
100 E. 10th St., Chattanooga, Tennessee 37402 USA<br />
Tel: (423) 266 9704 Fax: (423) 752 1973<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 115,000 100,000 95,000<br />
Company-owned ($000) 115,000 100,000 95,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 28 25 24<br />
Company-owned 28 25 24<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,200 4,050 3,958<br />
Concept Positioning |<br />
Gordon Biersch/Big River Brewery is a group of full-service brewpubs that team on-premise handcrafted beers with an eclectic<br />
international menu. The pubs operate under a variety of names in addition to Gordon Biersch and Big River. They are A1A Ale<br />
Works, Ragtime Tavern, Rock Bottom and Seven Bridges Grille. Open for lunch and dinner seven days a week, some of its<br />
units also have space for live entertainment such as jazz performances. Beer tanks form the focal point of its open and airy<br />
ambiance. Locations can also accommodate private parties.<br />
The company’s newest prototype averages around 10,000 sq.ft. with an additional 500–2000 sq. ft. for an outdoor patio and<br />
another 1,500–2,000 sq. ft. for the on-site brewing facility. It also has a smaller prototype for use in nontraditional sites such as<br />
sports stadiums and airports.<br />
Gordon Biersch debuted in Palo Alto in 1988. Named after its founding partners, Dan Gordon and Dean Biersch, the Gordon<br />
Biersch brand of beer has moved from its pub base into more than 500 retail locations such as ballparks, stadiums and<br />
airports. In 1999, Big River Breweries acquired all of the companies Gordon Biersch restaurants and formed a new corporate<br />
entity under the name Gordon Biersch Brewery Restaurant Group Inc. Two production plants, capable of producing 60,000<br />
barrels annually, will operate as a separate company that retails and bottles the Gordon Biersch beer brand.<br />
<strong>Menu</strong> Positioning |<br />
Features multi-ethnic-based menu. Entrees include seafood such as Barbecued Salmon with sweet red onion, spicy greens<br />
and rice; baby back ribs, roasted chicken and steak. Appetizers range from Cornmeal Dusted Crab cakes with fennel slaw and<br />
Creole mustard remoulade and Hawaiian-style Tuna Sashimi with pickled ginger, soy and wasabi to Roasted Vegetables and<br />
Fresh Mozzarella Salad. Other typical menu items include Grilled Ahi Tuna, Cannellini Bean with a roasted tomato vinaigrette,<br />
Chipotle Chicken Flautas and Skyhill Goat Cheese and Eggplant Bruschetta. Full liquor service as well as variety of onpremise<br />
brewed beers Alcohol accounts for 35%–40% of total sales. <strong>Menu</strong> Prices: $3.50–$16.95. Check Average: lunch, $13;<br />
dinner, $20 with alcohol.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
271
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Todai, the all-you-can-eat Japanese seafood buffet concept, plans to open a restaurant in Seattle. To be located in the<br />
downtown Pacific Place shopping center, the unit is expected to seat 300 and will share its fourth-floor location with Johnny<br />
Rockets, Gordon Biersch Brewery Restaurant and Desert Fire: A Southwestern Grill. The region's large Asian community was<br />
one of the deciding factors for Todai to open downtown. (Nation's Restaurant News 11/10/03)<br />
<strong>Menu</strong> Development |<br />
Mushrooms are popular substitutes for proteins due to their lower cost, yet hearty taste. As a result, operators are utilizing<br />
mushrooms in a host of interesting applications. 312 Chicago serves a wild mushroom ragu with porcini, cremini and oyster<br />
mushrooms over soft polenta and mascarpone cheese, while Chattanooga, TN-based Gordon Biersch Brewery Restaurants<br />
offer a Smoky Portobello Mushroom Satay served with crisp polenta and salsa fresca. Country Kitchen features mushrooms in<br />
the majority of its menu items. Examples include Mushroom Spaghetti with Asiago cheese and a Grilled Cheese and<br />
Mushroom Panini. Romano’s Macaroni Grill had so much success with a stuffed portobello mushroom appetizer it increased<br />
the portion and made it an entrée. The mushroom is stuffed with ricotta, feta and Parmesan cheeses, spinach, garlic salt,<br />
pepper and seasoned bread crumbs. After baking, it is served over a salad of spinach, sun-dried tomato, roasted red pepper,<br />
radicchio and blue cheese with balsamic-honey dressing. (Chef 10/03 p21)<br />
Personnel |<br />
Alan Cory, Chief Executive Officer<br />
Andrew Stockett, Chief Financial Officer<br />
Bob Page, Chief Operating Officer<br />
Robert Werk, Vice President of Operations<br />
Larry McClure, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
272
Grady's American Grill<br />
Headquarters<br />
4220 Edison Lakes Pkwy., Mishawaka, Indiana 46545 USA<br />
Tel: (574) 271 4600 Fax: (219) 271 4612<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 44,918 60,447 68,615<br />
Company-owned ($000) 44,918 60,447 68,615<br />
Franchised ($000) - - -<br />
U.S. Number of Units 16 34 35<br />
Company-owned 16 34 35<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,660 1,778 1,960<br />
Concept Positioning |<br />
Quality Dining operates Grady's American Grill which are moderately-priced dinner houses offering a more sophisticated<br />
ambience for maturing customers than is typical in many casual diners. Entrees emphasize on-premise scratch preparation in<br />
a classic American style.<br />
Its decor includes brick and polished wood and features both booth and table seating. Servers wear white shirts and bow ties.<br />
A gradual redesign of the concept is underway. Minor changes include new lighting fixtures and an illuminated wine rack in<br />
place of a wall mural. Units average about 7,000 sq.ft.<br />
The concept was founded by William Regas, a former National Restaurant Association president, and his family in Knoxville,<br />
TN. In late 1988, Brinker International acquired the 6-unit chain. In December 1995, Brinker International completed the sale of<br />
Grady's to Quality Dining, one of its Chili's franchisees.<br />
In late 2001, parent Quality Dining announced the sale of nine units to Brinker International for $10.4 million.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Prime Rib. Other specialties include steaks, seafood, salads, pastas and sandwiches such as burgers, grilled<br />
vegetable Panini, chicken club and Prime rib, soups and desserts. <strong>Menu</strong> Prices: $5.95–$16.95. Check Averages: $12–$13.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
273
Grandy's<br />
Headquarters<br />
997 Grandy's Lane, Lewisville, Texas 75077 USA<br />
Tel: (972) 317 8100 Fax: (972) 317 8134<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 73,692 88,433 93,083<br />
Company-owned ($000) 15,309 26,666 35,340<br />
Franchised ($000) 58,383 61,767 57,743<br />
U.S. Number of Units 104 115 116<br />
Company-owned 17 32 46<br />
Franchised 87 83 70<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 750 793 768<br />
Concept Positioning |<br />
Grandy's Country Cookin' restaurants are positioned as upscale quick-service chicken restaurants. Although customers order,<br />
pay for, and receive food in a multiple-line ordering area, they seat themselves in a dining room with an upscale, home-style<br />
atmosphere. A self-service counter allows customers to fill their own beverages. Food is served on plastic plates, but during<br />
peak hours, a hostess brings refills of tea and coffee, extra napkins and condiments, and helps patrons with small children.<br />
Grandy's makes a practice of hiring "grand-motherly" women as hostesses.<br />
Units are open for breakfast, lunch and dinner, with breakfast generating 20% of sales, lunch 37% and dinner 43%. Carryout<br />
orders account for more than half its business, most of that at the drive-through window. Catering is available for special<br />
occasions. Units are freestanding brick and wood structures, with a mansard roof and drive-through service window, and<br />
typically occupy 2,700–5,200 sq.ft. with seating for approximately 60–220 customers. The decor features real tile floors, oldfashioned<br />
wood stoves, oak and brass salad bars, Tiffany-style lamps, and country-style antiques and artifacts. Seating is<br />
upholstered in earth tones.<br />
Walter (Ed) Johnson and Rex Sanders founded the chain in Lewisville, TX, in 1973. A franchising program was introduced in<br />
1977, and menus were expanded to include breakfast in 1980. The chain was acquired by American Restaurant Group in<br />
1987. In May 2000, ARG announced its intent to sell the chain to NBACo, Inc. (Spectrum Restaurant Group). The deal closed<br />
in late June.<br />
Current management includes Steve Butts, chief operations officer; Bob Blum, vice president planning and administration; and<br />
Mike Griffith, director of marketing.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: fried, grilled or roasted chicken; hot butter yeast rolls prepared in the customer's view. Also country-fried<br />
steak, fresh chicken breast nuggets, catfish and shrimp and baked goods including signature Sinnamon Rolls. Dinners served<br />
with fries or whipped potatoes, coleslaw or Boston baked beans and a roll; Breakfast: eggs, pancakes and baked goods.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
274
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Spectrum Restaurant Group has filed for Chapter 11 bankruptcy protection. The company’s 135 outlets include 83 franchised<br />
Grandy’s chicken units, the Spoons casual-dining chain, National Sports Grills, Crabby Bob’s and upscale concepts such as<br />
Prego, Guaymas and Tutto Mare. Spectrum was spun off for $17 million in June 2000 by Stuart Anderson’s Black Angus<br />
parent American Restaurant Group. The split relieved Spectrum of ARG’s estimated debt of $166 million. The company’s<br />
attorney noted that the bankruptcy filing was not debt-related but rather was spurred by “underperforming units,” including 16<br />
that have been closed but for which Spectrum continues to hold leases. Chapter 11 will allow the company to eliminate those<br />
obligations. In addition, Spectrum’s lender has terminated the company’s line of credit as it wishes to exit the restaurant<br />
business. Those factors, along with soft sales, an $8 million investment in new restaurants in recent years and the pay-down<br />
of a term loan from $10 million to $2.1 million, forced the company to seek Chapter 11 protection. (NDNF 8/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
275
Great American Cookies<br />
Headquarters<br />
2855 E. Cottonwood Pkwy. Suite 400, Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 89,000 98,000 96,000<br />
Company-owned ($000) 24,000 26,000 25,000<br />
Franchised ($000) 65,000 72,000 71,000<br />
U.S. Number of Units 291 320 308<br />
Company-owned 69 102 95<br />
Franchised 222 218 213<br />
International Sales ($000) 400 - 300<br />
International Units 2 - 1<br />
Average Sales/Unit ($000) 295 300 263<br />
Concept Positioning |<br />
Great American Cookies owns, operates and franchises specialty retail cookie stores that specialize in chocolate chip and<br />
other varieties of cookies and brownies. It also promotes its 16-inch personally decorated chocolate chip cookie cake.<br />
Most units are located in shopping malls, however, the company is also developing nontraditional sites and kiosk locations.<br />
Stores average around 700 sq. ft.; kiosks around 150 sq. ft.<br />
The company was founded in 1977 and began its franchising in 1978. In late 1993, it was acquired by Cookies USA, Inc. In<br />
1998, the company was acquired by Mrs. Fields' Original Cookies, Inc. and its parent Capricorn Investors, L.P. In mid-2001,<br />
the chain teamed with Wal-Mart, entering into an agreement calling for the development of co-branded stores in some of the<br />
retailer's super centers.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: chocolate chip cookie in variety of sizes. Also menus about a dozen other cookie varieties, brownies and<br />
beverages. Cookie flavors are rotated on a regular basis. Also features “Cookie Cakes” decorated with personalized<br />
messages.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
276
Great Steak & Potato Co., The<br />
Headquarters<br />
188 N. Brookwood Avenue Suite 100, Hamilton, Ohio 45013 USA<br />
Tel: (513) 896 9695 Fax: (513) 896 3750<br />
www.thegreatsteak.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 111,625 118,800 108,000<br />
Company-owned ($000) 5,225 13,915 12,650<br />
Franchised ($000) 106,400 104,885 95,350<br />
U.S. Number of Units 235 237 230<br />
Company-owned 11 16 20<br />
Franchised 224 221 210<br />
International Sales ($000) 7,600 11,000 10,000<br />
International Units 16 17 17<br />
Average Sales/Unit ($000) 475 475 632<br />
Concept Positioning |<br />
The Great Steak & Potato Co. is a chain of upscale, quick- service restaurants. Units are generally located in regional<br />
shopping center food courts, strip centers and airports. They range in size from 400–3,000 sq. ft., with the average food court<br />
unit requiring 700 sq. ft. and the average in-line unit requiring 1,500 sq. ft. Most units offer counter service only, with seating<br />
provided in the food court area; the in-line units offer seating within each unit. Outlets feature glossy, tiled store fronts, polished<br />
stainless and wood fixtures. Colorful store graphics, menus and neon signage also accent restaurants.<br />
The company plans an expansion of approximately 25 units per year. Its growth is now in non-traditional venues such as mall<br />
areas, strip/power centers, airports, college campuses and office buildings.<br />
The company was founded as a sole proprietorship in 1980 by Nick Lanni, president and chief executive officer. Patrick Lanni,<br />
the founder's brother is its current executive vice president. In 1985, the company incorporated as Nicar Management, Inc.<br />
The current chain brand name was adopted in 1994.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: genuine Philadelphia cheese steak sandwiches. Also Chicken Philadelphia— breast of chicken, stir- fried with<br />
onions and served with melted Swiss cheese on fresh bun and Philadelphia Ham Delight—trimmed ham, crushed pineapple<br />
and melted Swiss cheese served on fresh bun; hand-cut skin-on french fries and freshly-squeezed lemonade. Also menus<br />
baked potatoes with assorted toppings. Breakfast added to many units; menu includes 2–3 breakfast sandwiches including<br />
ham and cheese omelet on a bun, steak and eggs and steak and cheese omelet sub. Check Averages: $5.25.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
277
Personnel |<br />
Nick Lanni, Chief Executive Officer<br />
Ian Schneider, Vice President of Operations<br />
Robert Creager, Vice President of Operations<br />
Robert Creager, Director of Marketing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
278
Green Burrito<br />
Headquarters<br />
2207 South 48 Street Suite A, Tempe, Arizona 85282 USA<br />
Tel: (602) 426 0477 Fax: (602) 426 0480<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 13,200 13,200 87,000<br />
Company-owned ($000) 2,000 2,000 2,000<br />
Franchised ($000) 11,200 11,200 85,000<br />
U.S. Number of Units 33 33 256<br />
Company-owned 5 5 5<br />
Franchised 28 28 251<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 400 400 399<br />
Concept Positioning |<br />
The March 2002 acquisition of the Santa Barbara Restaurant Group by CKE Restaurants gives the parent of company of Carl<br />
Jr., Hardee’s and Taco Bueno a new foothold in the growing Mexican segment. The merger means CKE Restaurants now<br />
operates more than 3,400 restaurants, including Hardee's, Carl's Jr., La Salsa Fresh Mexican Grills, Timber Lodge<br />
Steakhouse restaurants and Green Burrito restaurants. The latter three concepts were acquired as part of the merger with<br />
Santa Barbara Restaurant Group.<br />
There are now 107 company-owned Carl’s Jr. locations and 88 franchised locations co-branded with Green Burrito. Prior to<br />
the merger with Santa Barbara Restaurant Group, CKE ranked 14th among foodservice company, according to the latest<br />
<strong>Technomic</strong> Top 500 rankings, and they ranked 11th among <strong>Technomic</strong> Top 100 chain restaurant companies.<br />
Green Burrito-only stores are typically located in strip shopping centers or are freestanding units averaging 1,400–2,000 sq.ft.<br />
with seating for around 30–60. Units are open seven days a week from 8 a.m.–10 p.m. for sit-down, takeout or drive-through<br />
service. In addition, the company distributes its own line of frozen Mexican foods to retail outlets.<br />
Green Burrito was founded in 1980 by Ruben Rodriguez. Its current corporate structure dates back to 1987 with the founding<br />
of GB Foods. Current management includes Ted Abajian, president, chief executive officer and principal financial officer, and<br />
Nicholas J. Caddeo, executive vice president and chief operations officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: over 2-lb Big Ed burrito with steak, carnitas, refried beans, rice, lettuce, tomato, guacamole, cheese and<br />
double tortillas ($4.89) & Wet Burritos with refried beans, rice, cheese & choice of steak, chicken, beef or pork covered with<br />
either green chili sauce or enchilada sauce & cheese, served with tortilla chips ($4.09). Combination plates include two steak<br />
tacos, salad, rice & beans ($4.09). Condiments such as jalapeno peppers, hot sauce & mild & hot salsa available at self-serve<br />
salsa bars. Breakfast menu includes huevos rancheros, breakfast burritos, chorizo & egg burritos, tostadas rancheros &<br />
orange juice <strong>Menu</strong> Prices: 99¢–$4.89.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
279
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CKE Restaurants expects to sell its 26-unit Timber Lodge Steakhouse for $10 million to an unidentified buyer, according to its<br />
quarterly SEC report. The deal was expected to close in August. Timber Lodge is CKE’s only full-service concept. CKE<br />
acquired Timber Lodge as part of its purchase of the La Salsa Fresh Mexican Grill and Green Burrito chains. Sixteen of<br />
Timber Lodge’s restaurants are in Minnesota. (NRN 7/14/03 p3; FIR 7/7/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
280
Ground Round<br />
Headquarters<br />
703 Granite St., Braintree, Massachusetts 02184 USA<br />
Tel: (781) 380 3100 Fax: (781) 380 3207<br />
www.groundround.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 218,640 225,246 258,056<br />
Company-owned ($000) 162,829 176,421 197,056<br />
Franchised ($000) 55,811 48,825 61,000<br />
U.S. Number of Units 139 131 150<br />
Company-owned 88 96 117<br />
Franchised 51 35 33<br />
International Sales ($000) 1,000 1,000 -<br />
International Units 1 1 -<br />
Average Sales/Unit ($000) 1,601 1,687 1,684<br />
Concept Positioning |<br />
The Ground Round restaurant chain is a full-service operation offering lunch and dinner. Its strategic positioning is to serve a<br />
wide variety of foods that appeal to families as well as couples and business people.<br />
Most units are freestanding, averaging approximately 5,600 sq. ft. and seating 210 patrons. Two separate dining rooms are<br />
used and the main room is designed to appeal to families. Its separate adult bar/lounge area is an important features; the area<br />
averages 1,400 sq. ft. with seating for 70 and accounts for 15–20% of sales. Overall, the ambience offers a light, bright, and<br />
airy look, with skylights and greenhouses, but a certain rustic flavor has been preserved from the original design concept with<br />
selected light-hearted artifacts. In 2001, the restaurant opened a new prototype. Featuring an expanded menu, the outlet has a<br />
more contemporary feel, with a tan, burgundy red and brick color scheme dominating. The meet customer needs, the interior<br />
has been updated with an abundance of booths. Future remodeling projects will incorporate many of the new features<br />
exhibiting in the new prototype.<br />
Currently, its new parent company is developing several new concepts as well as plans for a major remodeling of existing<br />
units. Although specifics have not been released, its intention is to convert a portion of the Ground Rounds to its newer<br />
concepts. Those not converted will be remodeled. Ground Round is also continuing its operation of "Project Genesis," an<br />
undertaking in which underperforming units are refranchised to new owners.<br />
The Howard Johnson Corp. opened the first Ground Round in 1969. In 1978, a major franchising drive was launched. In the<br />
1980s, it was included in several acquisitions and spin-offs and eventually fell under the ownership of GR Foods, Inc. In mid-<br />
1991, GR Foods became a publicly held corporation known as Ground Round Restaurants, Inc. In late 1997, Boston Ventures<br />
completed its buy-out of the company, thereby taking it private. Its new corporate entity is known as American Hospitality<br />
Concepts, Inc.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
281
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: ½-lb hamburger. Features more than 150 items on menu: steaks, chicken, ribs, seafood, pastas, Italian,<br />
Oriental and Mexican dishes, entree salads, deli sandwiches and 8 popular kids meals. Full liquor service; accounts for some<br />
20% of sales. <strong>Menu</strong> Prices: $3.79–$12.95. Check Averages: $10.10.<br />
<strong>Menu</strong> Development |<br />
Ground Round is emphasizing Tex Mex foods with its Border Bonanza promotion. An appetizer Southwest Sampler includes a<br />
trio of Texas toothpicks (deep-fried onions and jalapeno peppers), bacon Cheddar-Jack quesadilla wedges and mexi-skins<br />
(potato skins with chili, melted Jack cheeses and jalapenos, all served with salsa and seasoned sour cream). Entrée<br />
selections include: ■ Grande Taco Salad—a choice of beef chili or seasoned chicken with greens, tomatoes, black beans,<br />
cheeses and pico de gallo, topped with seasoned sour cream, tomatoes and black olives ■ Chicken Burrito—roasted chicken<br />
seasoned in a bold ranchero salsa with sautéed peppers and caramelized onions; smothered in a chili cream sauce and<br />
topped with Texas toothpicks and pico de gallo ■ Mexican Sirloin Tips—10 oz. of sirloin tips served with sautéed red and<br />
green peppers and topped with melted pepper Jack cheese with Spanish rice and seasoned sour cream on the side ■ Combo<br />
Fajitas—a skillet of steak and chicken with sautéed onions and peppers served with pico de gallo, seasoned sour cream,<br />
Cheddar cheese and warm tortillas; also available as chicken or beef only ■ Triple Fajitas—Cajun shrimp, grilled steak and<br />
chicken served over peppers and onions with fixings on the side ■ Rib Fiesta—a 24-oz. portion of baby back rib pieces<br />
smothered in smoky jalapeno barbecue sauce and served with coleslaw and french fries. (Company Web Site)<br />
Ground Round Grill & Bar is promoting its premium drinks with a new table-top menu. It lists more than 30 specialty cocktails<br />
divided into categories such as Frozen Treats, Creative Concoctions and After Dinner Drinks, as well as beer, wine and<br />
nonalcoholic drinks. (NRN Daily NewsFax, 7/21/03)<br />
Burgers are showcasing inventive ingredients as operators work to develop enticing options that appeal to consumers looking<br />
to indulge even as obesity becomes an increasingly important issue. While salads and other better-for-you fare seem to be<br />
gaining menu mentions lately, hamburgers remain the most-ordered option at restaurants. Interesting toppings, spices and<br />
sauces are being utilized to add flavor and interest. At Red Robin, a 5 Alarm Burger is smothered in Pepper Jack cheese,<br />
jalapenos, salsa, tomatoes, lettuce and chipotle mayonnaise. Equally indulgent variations include: ■ Ranch Burger—halfpound<br />
burger with spicy ranch dressing, Cheddar cheese, bacon and grilled red onions, Ground Round ■ Hickory Burger—<br />
half-pound Choice sirloin patty topped with Cheddar cheese, hickory-smoked bacon and stout barbecue sauce, Rock Bottom<br />
Restaurant & Brewery ■ California Burger—half-pound Choice beef patty topped with Jack cheese, bacon and avocado, Stuart<br />
Anderson’s Black Angus/Cattle Company ■ Smoke House Burger—half-pound Choice beef patty with Jack and Cheddar<br />
cheeses, sautéed mushrooms, onions and barbecue sauce, Texas Roadhouse. (Restaurants & Institutions 9/1/03 p31)<br />
Personnel |<br />
Brian Connell, Chief Financial Officer<br />
Robert Hoffmeister, Senior Vice President of Operations<br />
Kevin Young, Director of Purchasing<br />
Ken Roffe, Senior Vice President of Marketing<br />
Warren Hutchins, Vice President of Purchasing<br />
Tom Russo, Chief Executive Officer<br />
News & Other |<br />
Ground Round signed three franchisees, A.B.L.A. LLC, Global Franchise N&S Inc. and Creative Restaurant Group Inc., to<br />
open 11 units. A.B.L.A. agreed to open four units and take over five existing units in the Pittsburgh market. Global will take<br />
over two existing units and open two more locations in upstate New York. Creative is slated to open five units in California. No<br />
timeframe was mentioned. (NDNF 10/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
282
Gumbo's Louisiana Style Cafe<br />
Headquarters<br />
20308 Hwy 71 W, Spicewood, Texas 78669 USA<br />
Tel: (512) 263 0800 Fax: (512) 263 8055<br />
www.fired-upinc.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 8,660 5,258 4,500<br />
Company-owned ($000) 8,660 5,258 4,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 4 3 2<br />
Company-owned 4 3 2<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,165 2,400 2,400<br />
Concept Positioning |<br />
An acquisition of Fired Up Inc., the fine-dining Gumbo’s offers a mix of Creole, Cajun and French sauces. The chain also<br />
offers more typical American fare, such as beef tenderloin, salmon, shrimp and crawfish.<br />
<strong>Menu</strong> Positioning |<br />
Gumbo’s cuisine is a fusion of Creole, Cajun and French sauces combined with American items such as beef tenderloin,<br />
salmon, shrimp and crawfish. The menu includes items like Tenderloin Robert (Black Angus tenderloin grilled and topped with<br />
jumbo shrimp, served over mushroom bacon garlic sauce and topped with red wine pepper sauce) or the Fish of the Day<br />
blackened and served over sautéed crawfish in creamy pernod sauce. Entrees are served with a choice of salad, Cajun dirty<br />
rice or specialty mashed potatoes. The appetizers range from Gumbo’s Oysters Rockefeller to Crab Portabello. Gumbos and<br />
étouffées are also available. Gumbo’s offers desserts, such as Gumbo’s signature custards and cheesecake. The check<br />
average is $25.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
283
Haagen-Dazs<br />
Headquarters<br />
200 S. 6th St., Minneapolis, Minnesota 55402 USA<br />
Tel: (612) 330 4966 Fax: (612) 330 7074<br />
www.restaurantassociates.com, www.haagendazs.com<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 86,750 83,500 81,000<br />
Company-owned ($000) 15,750 20,000 19,000<br />
Franchised ($000) 71,000 63,500 62,000<br />
U.S. Number of Units 240 225 215<br />
Company-owned 33 30 30<br />
Franchised 207 195 185<br />
International Sales ($000) 182,500 150,000 140,000<br />
International Units 700 515 485<br />
Average Sales/Unit ($000) 385 375 633<br />
Concept Positioning |<br />
Häagen-Dazs is primarily a manufacturer of super-premium ice cream and frozen desserts and sells its product through<br />
supermarkets, convenience stores and Häagen-Dazs shops. No foods are prepared on site. Products are manufactured at a<br />
plant in Tulare, CA.<br />
Häagen-Dazs positions itself as a super-premium, all-natural ice cream made with 16% butterfat, and 15–20% overrun (about<br />
8% air; government standards require at least 10% butterfat and no more than 100% overrun). It also contains no chemicals,<br />
additives, preservatives, or stabilizers.<br />
Units are primarily in malls and strip centers. Walk-up stores require 500–800 sq. ft., whereas the larger dessert shops have a<br />
total area of 1,000–1,400 sq. ft. and seating for 20–36 customers.<br />
Reuben Mattus built a frozen dessert merchandising business from the lemon ices stand begun by his parents in Bronx, NY, in<br />
1921. The products were first marketed in 1961 to New York gourmet shops. Häagen-Dazs was created in 1981 with an<br />
invented name and was acquired by The Pillsbury Co. in July 1983. At the end of 1988, Grand Metropolitan PLC acquired The<br />
Pillsbury Co. In late 1997, Grand Metropolitan merged with Guinness PLC, and began operating under the name Diageo PLC.<br />
In 2001, General Mills acquired Pillsbury from Diageo and also gained control of the Häagen-Dazs brand and housed it in its<br />
Ice Cream Partners USA division. However, in 2002, Nestle purchased a 50% stake in the brand, gaining a 99-year license for<br />
the use of Häagen-Dazs in the United States, while General Mills still own and operates Häagen-Dazs' international business.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: super premium & low-fat frozen desserts available in 30 flavors in cones, cups, sundaes, sodas and shakes,<br />
ice cream sandwiches or takeout pints or quarts. Also menus several varieties of hand-dipped ice cream bars. 80% of units<br />
offer "scooped frozen" yogurt in up to 7 flavors and non-fat soft serve yogurt in 6 flavors.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
284
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Häagen-Dazs has introduced two new desserts. A Brownies a la Mode Sundae ($4.64) features two scoops of Brownies a la<br />
Mode ice cream, hot fudge, caramel, whipped cream and a cherry, while the Belgian Chocolate Shake ($4.95) is made with<br />
Belgian Chocolate ice cream and served in a fudge-drizzled cup with whipped cream and chocolate sprinkles. (Restaurant<br />
Business <strong>Menu</strong> Strategies Newsletter 10/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
285
Hamburger Hamlet<br />
Headquarters<br />
2701 Alton Parkway, Irvine, California 92606 USA<br />
Tel: (949) 863 8500 Fax: (949) 863 8529<br />
hamburgerhamlet.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 30,100 32,371 33,006<br />
Company-owned ($000) 30,100 32,371 33,006<br />
Franchised ($000) - - -<br />
U.S. Number of Units 14 14 14<br />
Company-owned 14 14 14<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,153 2,312 2,357<br />
Concept Positioning |<br />
Hamburger Hamlets are full-service restaurants open for lunch and dinner seven days a week. Several serve breakfast, others<br />
offer a Sunday champagne brunch, and all conduct a food-to-go business.<br />
Units may be freestanding or in high-rises, and each locale features a distinctive touch.<br />
Harry and Marilyn Lewis opened their first restaurant on Hollywood's Sunset Strip in 1950. In 1969, the company went public.<br />
In December 1995, it filed Chapter 11 bankruptcy; at the time the system totaled 19 units in three markets. In July 1996, its<br />
stock was delisted from NASDAQ.<br />
In early 1997, Koo Koo Roo, Inc. purchased the chain out of bankruptcy and later sold it to Prandium as part of a merger.<br />
However, in mid-2001, as part of its debt restructuring activities, Prandium announced its intent to sell the chain.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: line of gourmet-style hamburgers. Also features more than 130 American and European dishes including<br />
chicken, seafood, steaks, omelets, specialty sandwiches, low-calorie entrees and "healthy" foods. Trademarks include lobster<br />
bisque soup, all-white-meat chicken salad, onion soup fondue, and French-fried zucchini. Debuted seasonal “Hamlet at Night”<br />
menus in 2000. Full liquor service available. Check Averages: $10.18.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
286
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Prandium received a $6.4 million bid to purchase the company, according to a securities filing. The offer for the parent of Chi-<br />
Chi’s, Koo Koo Roo and Hamburger Hamlet comes from Prandium Acquisition Company LLC and the Los Angeles-based<br />
firms Triyar Cos. LLC and 180 Degree Group LLC, which teamed up with Goense Boundes & Partners of Lake Forest, IL, to<br />
submit a non-binding letter of intent to purchase the 178-unit restaurant operator and franchisor. The company’s spokesman<br />
could not be reached for comment. Not included in the deal is 14-unit Hamburger Hamlet, which Latin Intellectual Properties of<br />
Los Angeles has been seeking to buy since May 2002. Its $15 million bid for the chain was rejected last August. (NDNF<br />
5/30/03)<br />
Prandium is selling its Chi-Chi’s, Koo Koo Roo and Hamburger Hamlet brands. Prandium, which filed for Chapter 11 protection<br />
on October 8, already has potential buyers for the three brands. According to Prandium CEO Hugh Hilton, Chi-Chi’s has<br />
entered into a nonbinding letter of intent with CC Acquistion Holding Co. LLC, whose majority owner is Worldwide<br />
Entertainment Inc. Koo Koo Roo and Fuddruckers have entered into a definitive asset purchase agreement, and The Hamlet<br />
Group is also reported to be in negotiations with Fuddruckers. (NRN 10/20/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
287
Hard Rock Cafe<br />
Headquarters<br />
6100 Old Park Lane, Orlando, Florida 32835 USA<br />
Tel: (407) 445 7625 Fax: (407) 445 7869<br />
www.hardrock.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 250,000 259,660 265,000<br />
Company-owned ($000) 250,000 259,660 265,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 42 39 40<br />
Company-owned 42 39 40<br />
Franchised - - -<br />
International Sales ($000) 305,000 343,656 330,000<br />
International Units 68 65 62<br />
Average Sales/Unit ($000) 6,150 6,700 6,624<br />
Concept Positioning |<br />
Hard Rock Cafe is a full-service operation specializing in American-style food and beverages, some 52% of its revenue mix,<br />
served in a "rock scene" setting. The concept attracts customers of all ages, including families. Many purchase merchandise<br />
such as T-shirts, jackets, hats and watches displaying the Hard Rock Cafe logo. Merchandising revenues account for some<br />
48% of sales. In addition, it has begun expansion of the Hard Rock brand into music and television with its own record label,<br />
TV show and amphitheaters as well as lodging with the development of casinos, resorts hotels and beach clubs. Hard Rock<br />
Café has also formed an alliance with the National Basketball Association to create the “NBA City” restaurant concept, the first<br />
of which opened in Orlando in August 1999.<br />
Restaurants are open for lunch, dinner and snacks. All foods are prepared fresh daily. Units range in size from 1,400–41,000<br />
sq.ft. Interior design features multi-level seating, several bars, and a display of rock memorabilia—considered by Sotheby's to<br />
be the most extensive in the world—which circulates among the company's restaurants. The rock ‘n’ roll memorabilia collection<br />
includes 63,000 pieces valued at more than $31 million. A new cost-effective model signals a shift in the restaurant's<br />
expansion plans, as it has moved away from tourist-depended markets and is showing success in such arenas.<br />
Isaac Tigrett and Peter Morton opened the original Hard Rock Cafe in London in 1971. Morton sold his interest in the London<br />
operation in 1982, and the two men agreed to establish their own cafes in various parts of the world. In 1990, The Rank Group<br />
acquired Hard Rock International and in mid-1996, Morton sold his holdings, thereby unifying the chain's ownership.<br />
<strong>Menu</strong> Positioning |<br />
Offers hamburgers, veggie burgers, barbecue ribs, sandwiches, chicken, grilled fajitas, nachos, soups, salads and<br />
dessertsEach also serves some local specialties including pastas, steaks and meatloaf. Full liquor service is available. <strong>Menu</strong><br />
Prices: in U.S. $5.75–$17.25.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
288
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
International Activities |<br />
Fusion Management Corp. will open its first Wolfgang Puck unit in Oakville, Ontario, in October. In 2001, Fusion, an<br />
international Wolfgang Puck Express licensee, signed a deal to open 14 quick-casual restaurants and 10 full-service Wolfgang<br />
Puck Cafes. Its first unit will be a Puck Café. Fusion is headed up by former Planet Hollywood and Hard Rock Café operations<br />
executive John Thall. (NDNF 9/26/03)<br />
Personnel |<br />
Michael Salter, Vice President of Finance<br />
David Catalano, Vice President of Operations<br />
Marie Grimm, Director of Purchasing<br />
Don Berstein, Director of Purchasing<br />
Hamish Dodds, Chief Executive Officer<br />
Hard Rock Café International parent Rank Group PLC said that Pete Beaudrault resigned as president and chief executive of<br />
the more-than-100 unit Hard Rock Café chain. He had held the post for two years. Rank chief executive Mike Smith has<br />
assumed responsibility for Hard Rock on an interim basis. (NRN 2/10/03 p3)<br />
Hard Rock Café International promoted David Catalano to chief operating officer. Previously, Catalano was vice president of<br />
operations. (NRN Daily NewFax 9/30/03)<br />
News & Other |<br />
The Hard Rock Vault, an “interactive memorabilia attraction,” has been opened in Orlando, FL, by Hard Rock Café. The<br />
venue’s only foodservice is offered at its F-Stop café. Among the artifacts that visitors can view at the 17,000-sq.ft.-complex<br />
are the bass that belonged to John Entwistle of the Who; Bruce Springsteen’s boots; an army uniform worn by Elvis; and rare<br />
Beatles bobblehead dolls. (RH 2/03 p12)<br />
Hard Rock Cafe International will open a 10,000-sq.ft. cafe in the Mashantucket Pequot Tribal Nation-run Foxwoods Resort<br />
Casino in Connecticut. In 2004, it is scheduled to open Hard Rock Hotel and Casino outlets in Tampa and Hollywood with the<br />
Seminole Indian Tribe of Florida. (FIR 5/12/03 p6; CR 5/7/03)<br />
Pepsi-Cola North America’s relationship with Hard Rock Café International has been renewed through 2010. Hard Rock<br />
previously had a five-year contract with Pepsi-Cola. (NRN 5/19/03 p194)<br />
Hard Rock Café International Inc. reported comparable-restaurant food and beverage sales rose 2.1% for the first half of the<br />
year. Despite this increase, same-store sales for company-owned restaurants declined 3.2% during the same 6-month period.<br />
(NRN Daily NewsFax 09/11/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
289
<strong>RISE</strong> COMPANY PROFILE<br />
Hard Rock Café has opened Rock 101 to outside executives. By granting broader access to its corporate training program, it<br />
hopes to create a new revenue source as well as to promote the brand. The five-day leadership seminar is attended by all<br />
Hard Rock Café unit and corporate managers. The company said that other companies have been asking it to open Rock 101<br />
to them for years. If its initial offering is successful, it plans to offer public programs two or three times next year. (R&I 8/1/03<br />
p12)<br />
Hard Rock Café International has inked a licensing deal for a proposed $200 million theme park project in Myrtle Beach, SC. A<br />
group of amusement industry veterans have proposed Hard Rock Park, which is slated to open in 2005. (AB 8/11/03 p1)<br />
Hard Rock Café International reported comparable-store sales decreased 3.2% in company-owned restaurants for the first six<br />
months of 2003. (Nation’s Restaurant News 9/22/03 p18)<br />
United Airlines will conduct another test of branded food sales from restaurants on board selected flights beginning October<br />
31. The 90-day test will be run on more than 200 flights daily in and out of United’s Chicago and Denver hubs. Each flight will<br />
last more than 3.5 hours. Offerings will include branded recipes from T.G.I. Friday’s, Bennigan’s and Hard Rock Café and will<br />
be prepared by LSG Sky Chefs and Gate Gourmet. (NDNF 9/26/03)<br />
LSG Sky Chefs signed an exclusive agreement to adapt some Hard Rock Café menu items for its In-Flight Café program.<br />
United Airlines began serving items such as honey ham and cucumber on wheat croissant with a bowl of pineapple and<br />
strawberries along with a cup of flavored yogurt and a bottle of spring water as a breakfast meal. Sold by an airline attendant,<br />
the meals are $7 for breakfast and $10 for lunch or dinner. LSG’s other restaurant partners include Wolfgang Puck, T.G.I.<br />
Friday’s, Einstein Bros., Vie De France, D’Amico & Sons and Fresh City. The brands will be rotated among participating<br />
airlines approximately every 90 days. American Airlines and American Eagle are the carriers that have most recently begun<br />
testing In-Flight Café programs. Already implementing the program or still testing it are US Airways, Midwest Airlines,<br />
Northwest Airlines and United Airlines. (FSD 11/15/03 p20)<br />
The Hard Rock Hotel slated to open in Chicago by year’s end will include a China Grill restaurant. China Grill, the primary<br />
concept of New York-based China Grill Management, is expected to open at the Hard Rock Hotel by next March. The 381room<br />
hotel in a historic high-rise on Michigan Ave. is a joint-venture between Rank Group—Hard Rock’s British parent—and<br />
Spanish-owned Sol Melia Hotels & Resorts. Also preparing to open its doors in Chicago is Fuse, a contemporary American<br />
restaurant that will be located in the months-old Hotel 71. It will be opened by restaurateur Richard Mott, who points out that<br />
Fuse will be a chef-focused, destination restaurant with its own entrance. (NRN 11/24/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
290
Hardee's<br />
Headquarters<br />
505 N. Seventh Suite 200, St. Louis, Missouri 63101 USA<br />
Tel: (805) 898 4213 Fax:<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,698,536 1,904,363 2,050,000<br />
Company-owned ($000) 562,010 614,291 900,000<br />
Franchised ($000) 1,136,526 1,290,072 1,150,000<br />
U.S. Number of Units 2,073 2,249 2,526<br />
Company-owned 730 742 923<br />
Franchised 1,343 1,507 1,603<br />
International Sales ($000) 115,000 100,000 100,000<br />
International Units 156 141 134<br />
Average Sales/Unit ($000) 798 822 975<br />
Concept Positioning |<br />
Hardee's are quick service restaurants specializing in hamburgers. Boddie-Noell Enterprises, Inc. is one of its largest<br />
franchisees. Its strength is in its breakfast menu, which generates approximately 40% of its overall revenues. Units are largely<br />
freestanding and average 3,000–3,500 sq.ft. with seating for 75–100 persons. Most have drive-through windows and some are<br />
open 24 hours a day, primarily on weekends. Several prototypes are used throughout the system.<br />
The chain is currently in a rebuilding program to strengthen it’s positioning. Hardee’s units nationwide will be converted to the<br />
Star Hardee’s format. The Hardee’s name will be retained while incorporating the Carl’s Jr. logo including its famous star as<br />
well as limited table service. Restaurants utilize Carl’s Jr.’s charbroiling cooking method alongside Hardee’s biscuits.<br />
In addition, the company has a remodeling program underway to upgrade kitchens, install new menu boards and charbroilers,<br />
and freshen the overall appearance. In addition, parent CKE is also reducing its company-owned/franchised unit ratios. It sold<br />
300 of its units during its fiscal 2001.<br />
Hardee's was founded by Wilbur Hardee, who opened the first unit in Greenville, NC, in 1960. The next year he was bought<br />
out by Leonard Rawls and Jim Gardner and then it was acquired by Imasco, Ltd. in 1973. In 1997, Imasco sold the chain to<br />
CKE Restaurants, Inc. In April 1998, the company acquired Flagstar Enterprises Inc., its largest franchisee from Advantica<br />
Restaurant Group for $380.6 million and assumption of approximately $45.6 million in capital lease obligations.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: hamburgers. Also menus roast beef, fried chicken, specialty sandwiches and burgers and packaged specialty<br />
salads. Offers one of most extensive QSR breakfast menus; based on made-from-scratch Rise 'N' Shine biscuits served with<br />
egg, chopped beefsteak, sausage, chicken or country ham fillings; cinnamon and raisin biscuits (#1 selling breakfast item) and<br />
Frisco Breakfast sandwiches as well as platters. Co-brands some Carl’s Jr. made-to-order lunch and dinner items. Recently<br />
added an all-you-can-drink bar. Check Averages: $3.00–$4.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
291
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Hardee’s Food Systems rolled out a jumbo-sized cinnamon roll for $1.89. Baked fresh every morning, the rolls are topped with<br />
cinnamon, sugar and cream cheese icing. (NRN Daily NewsFax, Restaurant Business Daily News)<br />
Wendy’s plans to launch chicken strips later this year. According to comments from CEO Jack Schuessler in a conference call,<br />
the item will be added in the second half of 2003. Boneless chicken strips are already popular items at Popeyes, Domino’s,<br />
Hardee’s, KFC and Papa John’s. (Restaurant Business Daily News, 6/9/03)<br />
Hardee’s expects to launch a one-third pound burger wrapped in only lettuce in an effort to accommodate patrons following the<br />
Atkins Diet. The test location has not yet been revealed. (Restaurantbiz.com 9/19/03)<br />
Hardee’s made its Pork Chop Biscuit a permanent menu offering. Priced at $2.29, it features a breaded pork tenderloin filet on<br />
a buttermilk biscuit. (Restaurant Business 9/15/03 p30)<br />
Hardee’s is launching its first low-carb offering to attract consumers on the Atkins diet. The one-third pound burger is wrapped<br />
in lettuce instead of being served on a bun. Parent CKE Enterprises is also considering introducing a low-carb bun. (Food<br />
Institute Report 9/29/03 p7)<br />
Hardee’s is rolling out a new low-carbohydrate burger. Priced at $2.89, the Thickburger is made with one-third-pound Angus<br />
beef and is wrapped in iceberg lettuce. (NRN Daily NewsFax 12/16/03)<br />
CKE Restaurants is rolling out low-carb burgers at its Hardee’s and Carl’s Jr. chains after successful testing. Hardee’s will<br />
serve a low-carb Thickburger priced at $2.89, while Carl’s Jr. will offer a low-carb version of its Six Dollar Burger. The<br />
sandwiches target consumers on low-carb diets and are wrapped in lettuce instead of a bun. Each has six grams of<br />
carbohydrates, 55 fewer than traditional versions. (Restaurant Business Daily News 12/16/03, NRN Daily NewsFax 12/16/03)<br />
Personnel |<br />
Andrew Puzder, Chief Executive Officer<br />
Theodore Abjaian, Chief Financial Officer<br />
Noah Griggs, Senior Vice President of Operations<br />
Brad Haley, Vice President of Marketing<br />
Hardee’s Food Systems promoted Steve Evans to senior vice president of operations. (Franchise Times Nov.-Dec./2003 p53)<br />
News & Other |<br />
Hardee’s is now offering its premium Thickburgers line in all 725 company-owned stores and in nearly three-quarters of the<br />
entire 2,250-unit system. Most of the remaining locations are expected to offer the new sandwiches by the end of the summer.<br />
The eight varieties of Thickburgers, featuring charbroiled Angus beef patties weighing 1/3 lb., 1/2 lb. and 2/3 lb., are topped<br />
with crispier lettuce, sweeter onions and tastier cheese than their burger predecessors. The line also includes the Six Dollar<br />
Burger, a 1/2 lb. sandwich that sells for $3.95 that was developed by parent CKE Restaurants. The burgers range from about<br />
$2.89 to almost $5. Along with the Thickburger rollout, Hardee’s is cutting nearly 40 lunch and dinner items from its menu,<br />
including fried chicken, roast-beef sandwiches and several side items. Its breakfast menu as well as its Big Chicken Filet<br />
remain unchanged. (RB 5/1/03 p46)<br />
Hardees's rported same-store sales increased 1% for the quarter ended August 11. (Restaurantbiz.com 9/19/03)<br />
Hardee’s for the four weeks ended October 6, reported same-store sales increased 7.7%. (NRN Daily NewsFax 10/16/03)<br />
Boddie-Noell Enterprises signed a deal to open 25 units of Raving Brand’s Moe’s Southwest Grill concept in North Carolina<br />
and Virginia. Boddie-Noell operates 320 Hardee’s and 28 Texas Steakhouse & Saloon units in five southeastern states. It<br />
plans to develop the Moe’s brand in High Point and Winston-Salem, NC, and Newport News and Williamsburg, VA, over a<br />
five-year period. (NDNF 10/2/03)<br />
Hardee’s for the four weeks ended November 3, reported same-store sales increased 5.7%. (NRN Daily NewsFax 11/14/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
292
<strong>RISE</strong> COMPANY PROFILE<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
CKE Restaurants for the four weeks ended December 29, reported that same-store sales increases of 4.5% at Carl’s Jr., 7.3%<br />
at Hardee’s and 1.1% at La Salsa. (NRN Daily NewsFax 1/8/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
293
Harman Management Corp.<br />
Headquarters<br />
199 First St., Los Altos, California 94022 USA<br />
Tel: (650) 941 5681 Fax: (650) 948 7532<br />
Ownership: Private<br />
Segment: Multiple Concepts Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 345,000 340,000 -<br />
Company-owned ($000) 345,000 340,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 310 304 -<br />
Company-owned 310 304 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Harman Management is the oldest and one of the largest franchisee of KFC in the U.S. Each of its restaurants is set up as a<br />
separate corporation with different stockholders. Harman Management stores average per unit sales about 20% higher than<br />
chicken segment averages, with some 153 stores reaching $1 million or more in annual sales.The company began in 1941<br />
when Leon "Pete" and Arline Harman opened their first restaurant, a 16-seat eatery in Salt Lake City. In 1954, Harman signed<br />
a franchise agreement with Colonel Harlan Sander's and became that company's first franchisee. Through the years, Harman<br />
has made many contributions to the system including the name, Kentucky Fried Chicken, and its distinctive chicken bucket.<br />
Harman was given the 1990 IFMA Silver Plate Operator award. He also opened KFC's 5,000th unit. James Olson is the<br />
current president.<br />
Personnel |<br />
Jackie Trujillo, Chairman<br />
James Olsen, President<br />
James Jackson, Chief Financial Officer<br />
Vern Wardle, Vice President of Operations<br />
Gary Rancatore, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
294
Hibachi San<br />
Headquarters<br />
899 El Centro St. South, Pasadena, California 91030 USA<br />
Tel: (626) 799 9898 Fax: (626) 403 8600<br />
www.hibachisan.com<br />
Ownership: Private<br />
Segment: Limited Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 8,520 6,549 -<br />
Company-owned ($000) 8,520 6,549 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 15 12 -<br />
Company-owned 15 12 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 685 720 -<br />
Concept Positioning |<br />
Part of the Panda Restaurant Group that includes Panda Express and Panda Inn, Hibachi-San , was created in 1992. The<br />
concept features Japanese grill and bowl entrees in an extension of the group’s expertise in the quick service Asian<br />
cuisine.There are 15 Hibachi-San locations that are part of the Panda Restaurant Group’s more than 500 locations. The<br />
company generates more than $300 million in annual sales.<br />
<strong>Menu</strong> Positioning |<br />
Hibachi San offers Japanese cuisine emphasizing grilled chicken and beef. A new line of teriyaki bowls includes teriyaki<br />
chicken, teriyaki beef, spicy chicken or mixed vegetable options.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
295
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Asian noodle bowls are appearing on a wide range of menus. The bowls feature several different components in one dish,<br />
combining protein, sauce, starch and vegetables. As an added bonus, preparation tends to be relatively fast and easy. As an<br />
ever-exp anding number of chefs experiment with bowls, traditional Asian operators such as Hibachi-San are looking to make<br />
their own bowl offerings more interesting by focusing on authentic Asian flavors. The chain’s most popular dish is<br />
chicken/teriyaki bowls served with steamed broccoli, cabbage, carrots, zucchini and fresh-grilled chicken, all coated in teriyaki<br />
sauce. Other offerings range from shrimp tempura to Hawaiian chicken and vegetarian. The chain is currently looking to<br />
develop more traditional Asian-flavored bowls such as sukiyaki to enhance its authentic image; it is also developing dishes<br />
with a Japanese curry sauce that is a bit milder than Indian curry. Even concepts not specifically devoted to Asian cuisine are<br />
experimenting with bowls. Legal Sea Foods recently supplemented its seafood-focused menu with a Soba Noodle Vegetable<br />
Broth. The blend of whole vegetables, vegetable broth, soba noodles, ginger, spices and fresh herbs is receiving an<br />
enthusiastic response from more adventurous diners. Other examples of non-Asian chains launching Asian-inspired bowls<br />
include: ■ Pacific Noodle Bowl—shrimp, scallops and skinny noodles tossed with whole-roasted garlic and fresh watercress in<br />
a light lemon-butter sauce, Bennigan’s ■ Rice Noodles Tossed in Tamarind Sauce—with green onions, garlic, chilies, tofu, egg<br />
and crushed peanuts; garnished with shrimp or chicken, The Cheesecake Factory ■ Hula Bowl—greens with chargrilled<br />
chicken breast, pineapple, Mandarin oranges, rice noodles, carrots and tomatoes, Max & Erma’s ■ Bangkok Chicken Bowl—<br />
seasoned chicken tossed with quick-seared fresh vegetables and udon noodles in garlic-soy-ginger sauce, Rock Bottom<br />
Brewery. (Chef)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
296
Hooters<br />
Headquarters<br />
1815 The Exchange, Atlanta, Georgia 30339-2040 USA<br />
Tel: (770) 951 2040 Fax: (770) 618 7032<br />
www.hooters.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 575,000 550,000 483,000<br />
Company-owned ($000) 160,000 130,000 123,000<br />
Franchised ($000) 415,000 420,000 360,000<br />
U.S. Number of Units 293 277 259<br />
Company-owned 100 76 70<br />
Franchised 193 201 189<br />
International Sales ($000) 23,000 25,000 22,000<br />
International Units 22 22 18<br />
Average Sales/Unit ($000) 2,080 2,100 1,757<br />
Concept Positioning |<br />
Hooters operates and franchises a chain of casual restaurants open for lunch, dinner and snacks. It caters largely to males in<br />
the 25–54 age group. Some purchasing is centrally controlled but the bulk is handled at the unit level from a list of preapproved<br />
suppliers.<br />
Hooters restaurants are largely freestanding with a lively, casual, beach-style atmosphere. Most are conversion that average<br />
4,500 sq.ft. with seating for 180–200. Conventional table seating and bar-style seating is used.<br />
Small retail sections of each unit carry merchandise with Hooters often-provocative slogans. Items include T-shirts,<br />
magazines, calendars, sweatshirts, golf caps and trading cards. The items account for some 5% of sales.<br />
The first Hooters opened in Clearwater, FL, in 1983. Hooters of America acquired the rights to the restaurant concept from its<br />
founders in 1985. In 2001, the company purchased its trademark rights for $60 million from Hooters, Inc., Clearwater, FL. The<br />
deal gives Hooters of America complete control of the brand. In 2003, Hooters of America expanded its concept potential,<br />
starting an airline that services the Southeast United States.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: 3 dozen steamed oysters brought to a table in galvanized bucket with oyster knife and garlic butter sauce for<br />
dipping and chicken wings breaded and fried, as many as 50 per order in hot sauce. Other featured entrees include steamed<br />
clams and shrimp and steak and grouper sandwiches. Sides include fries, beans, potato salad and coleslaw. Naturally fresh<br />
salad dressings menued. Beer and wine available; liquor accounts for 25% of sales.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
297
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Hooters offers a Gourmet Chicken Wing Dinner. The meal includes a bottle of top-shelf French champagne and an order of 20<br />
wings for $124.99. (Restaurants & Institutions 10/1/03 p9)<br />
Personnel |<br />
Kobe Brooks, President<br />
Doug Elliot, Chief Financial Officer<br />
Bill Gowanloch, Vice President of Operations<br />
Joe Hummel, Director of Purchasing<br />
Mike McNeil, Vice President of Marketing<br />
Robert Brooks, Chairman<br />
Brent Rittersdorf, Vice President of Operations<br />
News & Other |<br />
Hooters of America is suing 10-unit WingHouse of Florida Inc. for trade-dress infringement. Hooters’ civil suit in U.S. District<br />
Court reportedly charges that WingHouse copies Hooters by having its female servers wear uniform shorts and tank tops and<br />
by using a decor that includes wood trim, Christmas lights, wood-weave plates, a sports-bar-type ambience and “identical”<br />
tables and chairs. An official with Largo, FL-based WingHouse maintained that trade-dress infringement could not be proven<br />
as it must be demonstrated that customers believed the two concepts were related. (NRN 2/24/03 p64)<br />
Hooters’ founders reportedly are looking for manufacturers to package frozen Hooters wings. Although they sold the franchise<br />
rights to the concept several years ago, they still own 20 Hooters in Florida, Chicago and Manhattan and retained the right to<br />
make spinoff food products. Its Buffalo Shrimp is already being marketed at Albertsons stores. (FIR5/19/03 p6)<br />
Hooters Air is currently serving Atlanta, Baltimore/Washington, Newark, NJ, and Myrtle Beach and may add additional routes.<br />
Hooters chairman Robert Brooks acquired the defunct Pace Airlines earlier this year and changed its name. The airline’s fleet<br />
consists of three 737s and one 757. Airfare is low, with a run to Myrtle Beach, FL, from Newark, NJ, or Baltimore running $99.<br />
Passengers get a Hooters restaurant experience, with each flight having at least two Hooters girls on board, along with trained<br />
flight attendants, and chicken wings are served. (RB 9/1/03 p34)<br />
Moe’s Southwest Grill signed franchisee Restaurants of America Inc. to a development agreement calling for the opening of 23<br />
units in the Dallas and Houston markets. The expected timeframe for the openings was not disclosed. Separately, Hooters<br />
Management Corp. has acquired the rights to develop the chain in Illinois. Hooters expects to open three Moe’s units in<br />
Chicago by March 2004 and to have 20 restaurants open in the state over the next three years. (NRN 11/3/03 p48; NDNF<br />
11/6/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
298
Hops Grillhouse & Brewery<br />
Headquarters<br />
2701 N. Rocky Point Dr., W. Suite 300, Tampa, Florida 33607 USA<br />
Tel: (813) 282 9350 Fax: (813) 282 9451<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 163,807 173,125 186,499<br />
Company-owned ($000) 163,807 173,125 186,499<br />
Franchised ($000) - - -<br />
U.S. Number of Units 66 74 74<br />
Company-owned 66 74 74<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,500 2,600 2,520<br />
Concept Positioning |<br />
Hops Restaurant Bar & Brewery is a full-service, casual dining chain that markets primarily to customers between the ages of<br />
21 and 35. Serving both lunch and dinner seven days a week, Hops prides itself on making everything from scratch. Unlike the<br />
minimal offerings at some microbreweries, the stated philosophy at Hops is that its brews are designed to be unique<br />
complements to the food.<br />
Units seat 160–240 people and range in size from 5,000–7,300 sq. ft. Display kitchens, high ceilings with exposed piping, soft<br />
lighting and a predominate use of booth seating, some 70%, create a comfortable and friendly atmosphere. Lighter woods are<br />
used as well as brick red, white and green colors in a somewhat rustic design. In addition, the units are focused upon an<br />
observation 450–750 sq. ft.-microbrewery that lets customers view the entire process through glass partitions. Located in hightraffic<br />
areas, Hops are generally in strip shopping centers or are freestanding units.<br />
The first Hops was opened in 1989 by Steak & Ale veterans, David Mason and Tom Schelldorf, in Clearwater, FL. In early<br />
1997, Apple South, Inc. acquired the company for some $31.5 million in cash and stock. That same year, the chain changed<br />
its name to Hops Restaurant Bar & Brewery and then in late 1998, its parent name was changed to Avado Brands.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong>s American grill items including Prime rib, steaks, ribs, pasta, fresh fish & chicken as well as an assortment of burgers,<br />
sandwiches, salads, appetizers, soups and desserts. Signature items include Brewmaster Steak, South Beach Chicken and<br />
Walker’s Wood Shrimp and Salmon Combo. Separate lunch menu with similar items offered until 3:00 p.m.; prices range from<br />
$5.95–$7.95. Full liquor service available: on-premise micro-brewed beers include Lightening Bold Gold, Clearwater Light and<br />
Hammerhead Red, plus seasonal Brewmaster’s selection. Alcohol accounts for 16.8% of sales. <strong>Menu</strong> Prices: $3–$16. Check<br />
Averages: $6–$18.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
299
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Hops rolled out two new entrees with its latest menu. Its Smoked Prime Rib is a bone-in hickory smoked prime rib, while World<br />
Class Pork Chops feature two bone-in chops grilled with maple glaze and served with home-style mashed potatoes. (PR<br />
Newswire, 8/21/03)<br />
Hops introduced a new Chinese Chicken Salad. It combines Napa cabbage, sprouts, pea shoots, grilled chicken, pineapple,<br />
mango, wonton crisps and scallions in a Chinese vinaigrette. (PR Newswire, 8/21/03)<br />
Personnel |<br />
Thomas DuPree, Chief Executive Officer<br />
David Schmidt, Vice President of Finance<br />
Sue Morgan, Vice President of Marketing<br />
Joe Barrett, Vice President of Operations<br />
Duncan McLane, Vice President of Operations<br />
Mary Butigan, Director of Purchasing<br />
Erin Murrin, Director of Marketing<br />
News & Other |<br />
Avado is reorganizing in an attempt to lighten its cash burden. It closed the headquarters of its 65-unit Hops Restaurant, Bar<br />
and Brewery chain in Tampa, FL, and consolidated all management functions in its home office in Madison, GA. Hops chief<br />
executive Ronald Magruder resigned; his duties will be assumed by Avado chairman and chief executive Tom Dupree. About<br />
29 Hops management and support employees were affected, with some given the chance to relocate or remain with the<br />
company in field positions. Also set for a realignment of executive duties is Avado’s other main brand, the 111-unit Don<br />
Pablo’s Mexican Kitchen. The Hops’ effort is part of Avado’s cost-cutting as it sells-off assets in anticipation of a May 25<br />
deadline for retiring its $75 million credit facility. Its auditors recently expressed “substantial doubt” about its ability to continue<br />
as a “going concern.” (NRN 3/31/03 p1)<br />
Consumer Reports’ annual survey of readers found that 69% were completely or very satisfied with their dining experiences at<br />
the 88 largest U.S. chain restaurants. The survey’s 71,000 responses represented nearly 166,000 meals eaten between April<br />
2001 and April 2002. For a chain to be included in the survey results, it had to be mentioned in at least 350 responses. New on<br />
this year’s list were J. Alexander’s; Maggiano’s Little Italy; Azteca Mexican; Hops Restaurant, Bar & Brewery; McCormick &<br />
Schmick’s; and P.F. Chang’s China Bistro. Capturing the top ranking in seven of the survey’s eight ratings categories was First<br />
Watch, a Sarasota, FL-based chain of 44 daytime-only restaurants. (NRN 6/30/03 p38)<br />
Households with annual incomes exceeding $200,000 are 86% more likely to include wine drinkers than the average American<br />
household, according to Mediamark Research Inc., New York, NY. Of those in the highest income bracket, 52% said they<br />
drink wine compared with 28% of those earning between $50,000 and $74,999 and just 15% of Americans with household<br />
incomes of less than $25,000. (AD 6/03 p8)<br />
Hops Restaurant, Bar & Brewery changed its name to Hops Grillhouse & Brewery. The 65-unit, Avado-owned brand is<br />
repositioning itself with a new menu focusing on its signature beers, hand-cut beef, seafood and chicken entrees such as<br />
Smoked Prime Rib, Chinese Chicken Salad and World-Class Pork Chops. (NDNF 8/26/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
300
Hot Sam<br />
Headquarters<br />
2855 E. Cottonwood Pkwy., Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 6,000 8,000 10,000<br />
Company-owned ($000) 6,000 8,000 10,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 24 32 44<br />
Company-owned 24 32 44<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 205 215 227<br />
Concept Positioning |<br />
A division of Mrs. Field’s Cookie’s Inc., Hot Sam features a variety of fresh and hot pretzels, with a variety of dipping sauces.<br />
While it was created in Utah in 1967, the first franchise operation did not begin until 1996.<br />
<strong>Menu</strong> Positioning |<br />
The signature items are soft hot pretzels and pretzel stix with toppings such as cheddar cheese, nacho cheese and pizza<br />
saucePretzels are baked on-premise.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
301
Houlihan's<br />
Headquarters<br />
Two Emmanuel Cleaver II Blvd., Kansas City, Missouri 64112 USA<br />
Tel: (816) 756 2200 Fax: (816) 756 1899<br />
www.houlihans.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Darryl's Restauraunt and Bar<br />
HRI Seafood Restaurants<br />
J. Gilbert's<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 211,954 244,725 249,032<br />
Company-owned ($000) 91,060 118,044 137,020<br />
Franchised ($000) 120,894 126,681 112,012<br />
U.S. Number of Units 78 84 100<br />
Company-owned 34 34 50<br />
Franchised 44 50 50<br />
International Sales ($000) 3,215 702 647<br />
International Units 3 1 1<br />
Average Sales/Unit ($000) 2,702 2,568 2,740<br />
Concept Positioning |<br />
Houlihan's restaurants are full service, casual dinner houses catering to customers in the 24–49 age group. Houlihan's are<br />
open for lunch, dinner and in about 15% of its units, Sunday brunch. The units are located primarily in suburban shopping<br />
centers, although approximately 30% are freestanding. Size and seating capacity varies widely in older units but newer<br />
prototypes average 5,000–6,000 sq. ft. Units are filled with original antiques and artifacts, brass fixtures, plants and wood<br />
paneling.<br />
The first Houlihan's opened in 1972 and has undergone several ownership changes through the years. In late 1991, its parent<br />
filed for bankruptcy under Chapter 11 and emerged under the majority ownership of The Glazer Group. In June 1998, the<br />
corporation was purchased by Scoggin Ventures (now HR Group Holdings), the investment arm of Dan Scoggin, founder of<br />
TGI Friday’s.<br />
<strong>Menu</strong> Positioning |<br />
Draws on different cuisines with entrees such as stir-fry shrimp, fajitas, barbecued baby-back ribs, steaks, pasta, sandwiches<br />
and seafood. Specialties include Dublin Pot Roast with mashed potatoes and home-style vegetables served with cheese toast;<br />
Grilled Caribbean Chicken with mango sauce and confetti vegetables served with sautéed vegetables and mashed<br />
potatoesAlso has extensive selection of appetizers, sides and soups. Burger and sandwiches served with french fries and cole<br />
slaw range from Grilled Portobello Sandwich to Wild Mushroom Swiss Burger. Desserts include Caramel-Topped Apple Pie<br />
and Peanut Butter Cup Cheesecake. Full liquor service available. Check Averages: $11.97.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
302
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
News & Other |<br />
The Riese Organization, a multi-unit operator based in New York City, has switched to Pepsi-Cola North America as its<br />
exclusive soft-drink supplier at its more than 100 New York-area outlets. It signed a multi-year contract for Pepsi brands in<br />
fountain cups, bottles and cans. Among the concepts operated by Riese are T.G.I. Friday’s, Pizza Hut, Dunkin’ Donuts, KFC,<br />
Houlihan’s and Tad’s Steaks. Riese will convert from Coca-Cola products over a period of a few months. (NRN 2/24/03 p48;<br />
WRC 2/24/03)<br />
Houlihan’s new restaurant at Logan International Airport in Boston served 500 covers on opening day in early June, according<br />
to BAA Boston Inc., the in-terminal retail developer. Serving breakfast, lunch and dinner, it is 3,250 sq.ft. and seats 137. It is<br />
operated by GladCo Enterprises, a subsidiary of Creative Host Services. (NDNF 6/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
303
Houlihan’s Restaurant Group<br />
Headquarters<br />
PO Box 16000, Two Brush Creek Blvd., Kansas City, Missouri 64112 USA<br />
Tel: (816) 756 2200 Fax: (816) 756 8396<br />
www.houlihans.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 247,497 326,272 -<br />
Company-owned ($000) 124,920 197,229 -<br />
Franchised ($000) 122,577 129,043 -<br />
U.S. Number of Units 88 116 -<br />
Company-owned 43 65 -<br />
Franchised 45 51 -<br />
International Sales ($000) 3,215 702 -<br />
International Units 3 1 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Houlihan’s Restaurant Group is a multi-concept company that focuses its operations in the upscale, casual and fine-dining<br />
segments. Its principal trade names are Houlihan's and Darryl's. The fine-dining operations are individually named and include<br />
such restaurants as Bristol Bar and Grill, Chequers and Braxton. Its specialty units include such names as single-unit Buena<br />
Vista Cafe (credited with having introduced Irish Coffee to the U.S.), Charley's Place, J. Gilbert’s Wood-fired Steaks and<br />
Phineas. In addition, the company is currently developing new concepts.<br />
The forerunner of the company's theme dinnerhouses was the Inn at the Landing in Kansas City. It was started by Joe Gilbert,<br />
Paul Robinson, and Gilbert's son Joe Jr. (Bill), who became partners in 1962 and opened the first Houlihan's in 1972. Their<br />
restaurant holdings were incorporated in 1978 but underwent several corporate structures, with the most recent a later 1991<br />
Chapter 11 filing and emergence in December 1992 with The Glazer Group as its majority owner. The corporate name was<br />
changed to Houlihan's Restaurant Group, Inc. in early 1995.<br />
In mid-1996, Zapata Corp., a Houston-based company one-third owned by Houlihan’s chairman and majority shareholder<br />
Malcolm I. Glazer, announced its intent to acquire the company for cash and stock totaling about $80 million. The deal fell<br />
through later that year.<br />
In June 1998, Scoggin Ventures acquired the company from Glazer. Terms were not disclosed. In February 2002, Houlihan's<br />
Restaurant Group, Inc. filed for Chapter 11 bankruptcy. The move, however, did not affect its franchise operations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
304
Personnel |<br />
Robert Hartnett, Chief Executive Officer<br />
Robert Ellis, Chief Financial Officer<br />
Alan Gaylin, Senior Vice President of Operations<br />
Gail Lozoff, Senior Vice President of Marketing<br />
Murray Miekenhous, Vice President of Purchasing<br />
George Atsangbe, <strong>Menu</strong> Development/R&D<br />
Kris Mulkey, Director of Marketing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
305
House of Blues<br />
Headquarters<br />
6255 Sunset Blvd., Hollywood, California 90028 USA<br />
Tel: (323) 769 4600 Fax: (323) 769 4792<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 133,000 110,000 120,000<br />
Company-owned ($000) 133,000 110,000 120,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 8 7 8<br />
Company-owned 8 7 8<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 16,000 16,000 14,999<br />
Concept Positioning |<br />
Houses of Blues combines live blues music with Southern cuisine. Restaurants are full service, upscale operations that appeal<br />
to a broad customer base. Units showcase African-American folk art and blues artifacts. A retail store within the complex sells<br />
books and magazines on blues as well as blues CDs, Blues Brothers black fedoras, and branded denims and T-shirts. Retail<br />
sales account for 20% of total sales. Its Los Angeles location features its own restaurant, The Porch Restaurant at House of<br />
Blues, which specializes in “new southern cuisine.”<br />
Units vary from location to location and its largest complex, in Myrtle Beach, SC, is 57,000 sq. ft. with seating for 500 people in<br />
the dining area.<br />
All food is prepared from scratch including cutting its own steak, mixing its own salad dressings and soups and selecting its<br />
own produce.<br />
Issac Tigrett, originator of Hard Rock Cafe, opened the first House of Blues restaurant in Cambridge, MA, in 1992. Parent<br />
HOB Entertainment has ventures in the Internet, records, publishing, concert amphitheaters and arenas (owns and operates<br />
some 20 in North America), tours, and radio. Greg Trojan is the current president and chief operating officer.<br />
<strong>Menu</strong> Positioning |<br />
Has New Orleans-based menu straight from the Bayou and backyard smokehouse ranging from Memphis style Ribs to<br />
Vegetarian Pasta. Barbecue sauce choices include Texas, Jack Daniels and Southern Comfort (Southern Comfort, hot sauce,<br />
garlic and onion). Also menus salads, sandwiches and dessert. <strong>Menu</strong> Prices: $8.95–$24.95. Check Averages, less<br />
entertainment: $20.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
306
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
News & Other |<br />
The House of Blues was to close its original location in Cambridge, MA, in mid-September. The chain of eight club-restaurants<br />
has sold the venue, which it opened about 10 years ago, and is seeking another site in the area with the capacity of its outlets<br />
in New Orleans, Chicago and Los Angeles. Terms of the sale were not disclosed. (NDNF 9/9/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
307
Houston's<br />
Headquarters<br />
147 S. Beverly Dr., Beverly Hills, California 90212 USA<br />
Tel: (310) 385 7343 Fax: (310) 385 7119<br />
www.houstons.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 255,000 250,000 248,000<br />
Company-owned ($000) 255,000 250,000 248,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 39 38 38<br />
Company-owned 39 38 38<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,850 5,800 6,526<br />
Concept Positioning |<br />
Houston's Restaurants are full service, upscale operations that appeal to a broad customer base. Its menu reflects a variety of<br />
cuisines as well as flavors and tastes unique to each of its locations. All food is prepared from scratch including grinding its<br />
own meat, cutting its own steak, mixing its own salad dressings and soups and selecting its own produce.<br />
Unit locations vary, with some freestanding and some located in shopping centers with the majority in suburban areas of major<br />
metropolitan markets. Seating averages are around 190 patrons per unit. The company tailors its designs to each location,<br />
although they do feature natural materials such as wood, brick and stone combined to give an overall casual ambience.<br />
Houston's began in 1977 in Nashville. Its founders, George Biel, Joe Ledbetter, and Vic Branstetter, had experience with<br />
Steak and Ale operations prior to developing Houston's.<br />
<strong>Menu</strong> Positioning |<br />
Broad-based menu that includes hamburgers, beef and ribs, fresh fish and chicken entrees as well as salads and<br />
appetizersSignature soups, sandwiches and vegetarian platters are also menued. Full liquor service available. <strong>Menu</strong> Prices:<br />
$5.25–$16.95. Check Average: $20–$27.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
308
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
309
Houston's Specialty Restaurants<br />
Headquarters<br />
2425 E. Camelback Rd. Suite 200, Phoenix, Arizona 85016 USA<br />
Tel: (602) 553 2111 Fax: (602) 553 2170<br />
www.houstons.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 46,000 48,000 33,400<br />
Company-owned ($000) 46,000 48,000 33,400<br />
Franchised ($000) - - -<br />
U.S. Number of Units 10 11 8<br />
Company-owned 10 11 8<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,050 5,000 4,174<br />
Concept Positioning |<br />
Houston’s Restaurants, in addition to its flagship Houston’s chain, owns and operates two recently developed concepts:<br />
Bandera, with seven units, and Gulfstream. In addition, it owns three single unit operations: Rutherford Grill, Palm Beach Grill<br />
and Fairway Grill, Kansas City, KS.<br />
Despite a Southwestern name and decor package, Bandera focuses on American cooking that includes its signature woodburning<br />
rotisserie chicken. Open for dinner-only (the Chicago unit serves both lunch and dinner), it has a casual, laid-back<br />
atmosphere is emphasized through the use of Southwestern colors and wood and adobe accents. The dining room is open<br />
and airy with a clear view of a wood-fired oven and exhibition style kitchen. Units average 5,700 sq. ft. and seat approximately<br />
140 patrons; each is equipped with a full bar.<br />
Gulfstream, formerly Cowboy Seafood, is decidedly more upscale. The company changed its name to better reflect its<br />
commitment to seafood, which constitutes 75% of the menu. A large restaurant, it is part of an upscale shopping center<br />
located near the oceanfront in Newport Beach, CA. It is open for lunch and dinner.<br />
Palm Beach Grill features American cuisine complete with an exhibition kitchen. It serves dinner only.<br />
Rutherford Grill in the heart of Napa Valley features house-smoked salmon, wood-fired rotisserie chicken and many regional<br />
specialties. It is open for lunch and dinner.<br />
Bandera's first unit opened in Scottsdale, AZ, in 1994 as a test concept for Houston's Restaurants, Inc. Gulfstream debuted in<br />
summer 1999 in Newport Beach, CA as Cowboy Seafood.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
310
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bandera: Signature item—wood-fired, spit-roasted chicken, served with a choice of mashed potatoes, roasted peanut coleslaw<br />
or fresh vegetables. Also menus wild mushroom meatloaf, jambalaya, honey-barbecued pork tenderloin, prime rib, Western<br />
beef back ribs, entree salads, cheeseburger, vegetable platter and 12 different side dishes including iron skillet corn<br />
bread.<strong>Menu</strong> Prices: $6-95–$18.95. Check Average: $16. Gulfrstream: Signature item—14 different oyster varieties and<br />
seafood dishes such as Blackened Red Snapper with Yummy Rock Shrimp Zydeco Sauce and Campfire Cedar Plank<br />
Roasted Salmon. Non-seafood entrees include glazed quail, pan fried chicken, green chili chicken enchiladas and rib steak.<br />
Sides range from french fries and mashed potatoes to sautéed Swiss chard, beets, corn on the cob and homemade<br />
Worcestershire sauce. <strong>Menu</strong> Prices: $7–$38. Check Average: $35.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
311
Huddle House<br />
Headquarters<br />
2969 E. Ponce de Leon Ave., Decatur, Georgia 30030 USA<br />
Tel: (404) 377 5700 Fax: (404) 377 1834<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 173,000 164,000 159,000<br />
Company-owned ($000) 11,000 14,000 14,000<br />
Franchised ($000) 162,000 150,000 145,000<br />
U.S. Number of Units 365 365 360<br />
Company-owned 25 30 30<br />
Franchised 340 335 330<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 500 460 466<br />
Concept Positioning |<br />
Huddle House restaurants are 24-hour “dinner-like” restaurants that rely heavily on a breakfast-based menu. Appealing to a<br />
diverse clientele, approximately 40% of sales come from its breakfast items.<br />
Units are largely freestanding and have an attractive Colonial brick edifice. Light, bright modern interiors offer both booth and<br />
counter service, with seating for some 60–80 patrons. It new units will be outfitted with green and white tile, red counter stools,<br />
polished chrome and red formica table tops. In 2003, the company launched a new prototype for all newly built Huddle House<br />
units. Featuring a redesigned exterior façade with terraced elevation lines, the prototype also has brighter veneer and reversechannel-lit<br />
signage.<br />
Given the natural fit, Huddle House has developed an aggressive co-branding program with travel plazas, truck stops and Cstores.<br />
At the end of 1998, some 25 units were already in operation.<br />
Huddle House began in Atlanta in April 1964. Franchising was started in 1966, with expansion in the Southeastern states<br />
largely through this operation.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Big House Platters including barbecue pork, grilled chicken, hamburger steak, country fried steak and triple<br />
decker hamburger. Features 24-hour breakfast specialties ranging from eggs cooked any style to soups, chili and saladsAlso<br />
menus chicken fingers, pork chops, fish, steak, country ham and shrimp as well as hamburgers and sandwiches. Check<br />
Averages: $5.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
312
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Huddle House is developing a new “Lite House” menu designed to appeal to health-conscious eaters such as women and<br />
seniors. It includes salads, baked potatoes and grilled chicken items, including a chicken chef salad and grilled chicken<br />
sandwich plate. (Nation’s Restaurant News)<br />
Personnel |<br />
Philip Greifeld, Chief Executive Officer<br />
Peggy Berry, Chief Financial Officer<br />
Ron Rumley, Vice President of Marketing<br />
Rance Reese, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
313
Hungry Howie's Pizza & Subs<br />
Headquarters<br />
30300 Stephenson Hwy., Madison Heights, Michigan 48071 USA<br />
Tel: (248) 414 3300 Fax: (248) 414 3301<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 227,000 215,000 180,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 227,000 215,000 180,000<br />
U.S. Number of Units 460 433 431<br />
Company-owned - - -<br />
Franchised 460 433 431<br />
International Sales ($000) 1,170 1,000 -<br />
International Units 3 2 -<br />
Average Sales/Unit ($000) 500 500 -<br />
Concept Positioning |<br />
Hungry Howie's Pizza & Subs is a chain of full service delivery and carryout pizza stores, located primarily in high-traffic areas.<br />
Its primary business hours are from 4:00 p.m. to midnight during the week and 2:00 a.m. on weekends. However, some of the<br />
units are also open during lunch hours. Its competitive uniqueness is its patented flavored crust pizza; some 85% of its sales.<br />
Hungry Howie's began in 1973 when James Hearn converted a 1,000 sq. ft. hamburger shop into a carryout and delivery<br />
pizzeria. In 1982 franchising began, with the first franchise awarded in January 1983. Its distribution arm, Hungry Howie's<br />
Distributing Inc., opened its first commissary in 1986 in Michigan, followed by a commissary in Florida in 1987.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: line of pizzas with 8 varieties of flavored crusts including original, sesame seed, buttered, cajun, poppy seed,<br />
rye, butter cheese, garlic and Crisp N Thin; priced in the $6.99–$10.99 range. Also offers oven-baked subs in 8 varieties such<br />
as steak and cheese, deluxe Italian, pizza special and vegetarian as well as fresh salads. Howie Bread and Buffalo wings two<br />
popular items. Beer and wine in some units. Check Averages: $13.00.<br />
<strong>Menu</strong> Development |<br />
Hungry Howie’s rolled out chicken tenders at participating units. The all-white-meat product is served with a choice of dipping<br />
sauce and sold in six-piece ($5.49) or nine-piece orders ($6.99). (Nation’s Restaurant News 9/29/03 p64)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
314
Franchise Activity |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Hungry Howie’s Pizza signed Artak and Arman Dovlatyan to a 20-year franchise agreement. The first opening is scheduled for<br />
September 2003 in California. (Franchise Times 9/03 p23)<br />
Hungry Howie’s Pizza signed a franchisee agreement with Jim and Danna Williams in Tennessee. Currently, there are no<br />
Hungry Howie units in the state. (NRN Daily NewsFax 12/01/03)<br />
Personnel |<br />
Steven Jackson, President<br />
Jeff Rinke, Vice President of Marketing<br />
Hungry Howie’s Pizza promoted Bob Cuffaro to vice president. Previously, Cuffaro was a franchise representative. (Nation’s<br />
Restaurant News 11/3/03 p48)<br />
News & Other |<br />
Hungry Howie’s Pizza will open a branch at Detroit Metropolitan Airport in the Edward H. McNamara Terminal. The unit will be<br />
opened by new franchisee Andrea Hachem, who also owns the Mediterranean Grill in the Detroit Airport and the Sheik<br />
restaurant in West Bloomfield, MI. (NDNF 8/25/03)<br />
Hungry Howie’s Pizza added chicken tenders to its menu at participating units. The tenders come with a choice of dipping<br />
sauce and are available in a six-piece order for $5.49 or nine pieces for $6.99. (NDNF 9/22/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
315
<strong>RISE</strong> COMPANY PROFILE<br />
Hungry Hunters/Mountain Jacks/Carvers<br />
Headquarters<br />
10200 Willow Creek Rd., San Diego, California 92131 USA<br />
Tel: (858) 689 2333 Fax: (858) 689 0433<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 100,000 124,000 123,618<br />
Company-owned ($000) 100,000 124,000 123,618<br />
Franchised ($000) - - -<br />
U.S. Number of Units 53 66 65<br />
Company-owned 53 66 65<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,800 1,875 1,901<br />
Concept Positioning |<br />
Steakhouse Partners operates casual dining restaurants under the following trade names: Mountain Jack's, Hungry Hunter’s,<br />
Hunter’s Steakhouse and Carvers. The Mountain Jack’s and Hungry Hunter concepts were developed regionally but utilize<br />
essentially the same concept, decor, menu and pricing and are positioned as traditional, quality-oriented operations. Units seat<br />
150 – 475 persons, with the average being 220. Many have a bar area near the main dining that seats another 30 patrons.<br />
Carvers is a new, more upscale concept that is a contemporary version of the classic American steakhouse and is divided into<br />
several dining rooms that can accommodate up to 240. Most are open for dinner only, with a few serving weekday lunch.<br />
Steakhouse Partners is also testing two other steakhouse concepts: J. Dempsey’s and H. Hunter Steakhouse.<br />
Further, the company has five individual dinnerhouse concepts housed in landmark buildings or at tourist sites: Tippecanoe<br />
Place, South Bend, IN; River Station, Peoria, IL; Whaling Company, Williamsburg, VA, The Sheepherder, Rancho Cordova,<br />
CA, and the Cliffhouse, Folsum, CA.<br />
Steakhouse Partners acquired Paragon Steakhouse Restaurants, Inc, which owned 78 steakhouse and Pacific Basin Foods,<br />
Inc. ("PBFI"), a wholesale food distributor serving the restaurant industry, in late 1998. In February 2002, Steakhouse Partners<br />
filed for Chapter 11 bankruptcy and is still seeking to emerge from bankruptcy.<br />
<strong>Menu</strong> Positioning |<br />
Features unique, proprietary prime rib served in herb crust and slow roasted for 7 hours. Also menus classic and specialty<br />
USDA Choice steaks; with prime rib about 70% of sales. Also menus seafood, poultry, lamb & barbecued ribs. Entrees<br />
generally include soup &/or salad, bread & choice of rice, various potatoes & vegetables. Full liquor service available; some<br />
19% of sales <strong>Menu</strong> Prices: $10.95–$23, except for lobster combo which is priced daily. Check Averages: $25; Carvers–$35.<br />
Dinnerhouses—menus similar to above.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
316
Il Fornaio<br />
Headquarters<br />
770 Tamalpais Dr. Suite 400, Corte Madera, California 94925 USA<br />
Tel: (415) 945 0500 Fax: (415) 924 0906<br />
www.ilfornaio.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 103,865 107,201 113,872<br />
Company-owned ($000) 103,865 107,201 113,872<br />
Franchised ($000) - - -<br />
U.S. Number of Units 24 24 25<br />
Company-owned 24 24 25<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,328 4,600 4,554<br />
Concept Positioning |<br />
Il Fornaio are full-service Italian restaurants that feature house-made and imported pastas as well as fresh breads and bakery<br />
goods made on-premise or in their wholesale bakery plants. Each unit has a retail market area that sells bakery items,<br />
prepared foods such as cold pasta and risotto salads, whole roasted chickens, stuffed artichokes, Italian sandwiches, and Il<br />
Fornaio-branded products such as oakwood-roasted coffee, pasta, extra virgin olive oil, balsamic vinegar and a Chianti<br />
Classico.<br />
Units range in size from 5,000–14,000 sq. ft. with seating for 76–282 patrons. The ambience is sophisticated, yet casual and<br />
features terracotta or European slate floors, marble bars, mahogany trim, hand painted ceilings and fine art. An exhibition<br />
kitchen allows patrons to view preparation with its wood-fired rotisseries, charcoal grills and wood-burning pizza ovens.<br />
Outdoor coffee/liquor bars and counter seats overlooking its pizza oven and exhibition kitchen also are used to expand<br />
seating.<br />
Its menu is created by native-born Italian chefs who are also partners. To further stimulate customer interest and encourage<br />
repeat business, Il Fornaio has a Festa Regionale, which features recipes and wines from one of Italy’s 20 different regions.<br />
The Festa menu is available for two weeks each month. Regular tastings are offered as well as baking classes, Italian culture<br />
seminars and a frequent diner program.<br />
In 1998, the company developed a quick-service “risotteria” adjacent to a Seattle unit. The Risotteria features display cooking<br />
and offer such menu items as risottos, wood-oven pizzas, fresh pastas, gnocchis and salads, all priced under $10. In 1999, it<br />
opened Canaletto in the Venetian Resort Hotel and Casino in Las Vegas. A full-service restaurant, it focuses on the service of<br />
authentic foods of Venice and its immediate surrounding region.<br />
Il Fornaio (America) Corp. was founded in 1981 as a licensed operation of Il Fornaio, an Italian baking company. In 1987,<br />
Laurence B. Mindel, chairman, acquired control of the company. In 1997, it filed for an initial public offering of 1.5 million<br />
shares. In July 2001, Manhattan Acquisition Corp., an affiliate of Bruckmann, Rosser, Sherrill Co., Inc. completed its merger<br />
with Il Fornaio and took the company private.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
317
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: House-made or imported pastas and wood-fired pizzas that vary seasonally such as Pizza con la Luganega–<br />
Italian sausage, roasted mixed bell peppers, mozzarella, oregano and tomato. sauce, Paglia e Fieno con Gamberetti–<br />
homemade spinach and egg linguine, fresh rock shrimp, chopped tomato, garlic, red chili flakes and parsley. Also menus<br />
variety of chicken, steak, game and veal wood-fired rotisserie entrees as well as antipasti selections, soups, salads and<br />
desserts such as Ricotta cheesecake with orange and lemon zest, candied orange peel, cinnamon and pastry cream in a<br />
sweet pastry crust that is served with cream anglaise. Rotating “Festa Regionale” promotion features food and wines from<br />
Italy’s 20 different regions. Full liquor service available; accounts for some 25% of sales. <strong>Menu</strong> Prices: $3.95–$21.50. Check<br />
Averages: $15–$25.<br />
<strong>Menu</strong> Development |<br />
Authentic, regional Italian cuisine is showcased at Il Fornaio, which celebrates different regions of Italy with its rotating Festa<br />
Regional menus. The Piedmonte region is being explored in November. This area is typified by hearty food such as risotto and<br />
polenta. Truffles are also a key regional ingredient. Examples from Il Fornaio’s menu include: ■ Risotto Porcini e Gamberetti—<br />
risotto with shrimp, porcini mushrooms and baby spinach ($16.95) ■ Gnocchi alla Piedmontese—house-made potato<br />
dumplings, sausage, peas, gorgonzola, tomato cream sauce and truffle butter ($13.50) ■ Agnolotti di Fonduta ai Porcini—<br />
house-made ravioli filled with fontina cheese, porcini mushrooms, garlic, butter and white wine sauce with white truffle oil<br />
($14.95) ■ Sfogliatina di Pere al Vino Russo—puff pastry with Bartlett pears poached in red wine and pastry cream served with<br />
grappa-golden raisin gelato, cream anglaise and whipping cream ($6.50). (Company <strong>Menu</strong> 11/03)<br />
Personnel |<br />
Michael Hislop, Chairman<br />
Michael Hislop, Chairman<br />
Sean Maloney, Chief Financial Officer<br />
Michael Beatrice, Chief Operating Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
318
In-N-Out Burger<br />
Headquarters<br />
4199 Campus Dr., Irvine, California 92612 USA<br />
Tel: (949) 509 6200 Fax: (949) 509 6300<br />
www.inandout.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 285,000 260,000 240,000<br />
Company-owned ($000) 285,000 260,000 240,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 171 160 142<br />
Company-owned 171 160 142<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,700 1,600 1,690<br />
Concept Positioning |<br />
In-N-Out Burger is the original double drive-through hamburger chain and much of its operation has remained unchanged<br />
since its beginnings in 1948. It still has extended hours, staying open until 1 a.m. Sunday–Friday and 1:30 a.m. on Saturday.<br />
Food is cooked to order, and no microwaves or freezers are on site. All food products are fresh, never frozen; potatoes are<br />
peeled and cut in each store. The shakes are made with real ice cream. Hamburger buns use a recipe that requires seven<br />
hours to rise. The company's headquarters includes a commissary to maintain quality control over all of its ingredients. It also<br />
houses a university where new managers are taught the In-N-Out business and formula.<br />
Units are freestanding and have a large parking lot. Older units have a simple glass-walled building of about 250 sq. ft. that<br />
has two drive-through windows. In addition, there is also a walk-up window. Each location also has an adjacent storage<br />
building of about 500 sq. ft. Newer also have two drive-through lanes as well as indoor and outdoor seating. The interior<br />
design resembles a 1950s diners and feature red and white ceramic tiles with palm trees near the ordering areas. The<br />
company's logo is red letters with a yellow arrow. Units also have retail items including t-shirts, caps, jackets and various<br />
collectibles.<br />
In-N-Out began in 1948 in the Los Angeles suburb of Baldwin Park when Harry Snyder opened a drive-through hamburger<br />
stand that included a customer ordering process through a two-way speaker box. Esther Snyder is its current president. All<br />
units are company owned and no plans for franchising are underway.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Double, double cheeseburger. Offers total of 15 items including 3 different hamburgers and cheeseburgers,<br />
fries and 4 different shakes and soft drinks. <strong>Menu</strong> Prices: 65¢–$2.30.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
319
Personnel |<br />
Esther Snyder, Chief Executive Officer<br />
Mark Taylor, Vice President of Operations<br />
Jay McGill, Director of Purchasing<br />
Michelle Guzman, Director of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
320
International Dairy Queen, Inc.<br />
Headquarters<br />
7505 Metro Blvd., Minneapolis, Minnesota 55439 USA<br />
Tel: (952) 830 0200 Fax: (952) 830 0301<br />
www.dairyqueen.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Dairy Queen/ Brazier<br />
KarmelKorn<br />
Orange Julius of America<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,538,300 2,561,500 -<br />
Company-owned ($000) 32,000 31,500 -<br />
Franchised ($000) 2,506,300 2,530,000 -<br />
U.S. Number of Units 5,107 5,198 -<br />
Company-owned 64 63 -<br />
Franchised 5,043 5,135 -<br />
International Sales ($000) 388,000 379,000 -<br />
International Units 939 931 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
International Dairy Queen with its almost $2.75 billion systemwide sales ranks as the 9th largest U.S. restaurant company<br />
according to the 2001 edition of the TECHNOMIC Top 100 report. Its main trademarks are Dairy Queen and Brazier. In<br />
addition to its chain operational responsibilities, the company is one of more than 90 approved manufacturers of Dairy Queen<br />
ice cream mix and concentrates and sells equipment to stores and purchases certain supplies for resale to franchisees.<br />
The first Dairy Queen was opened in Joliet, IL, in 1940 by Sherb Noble. Harry Oltz had the machine to freeze the confection<br />
and J.F. and H.A. McCullough developed the soft serve concept. In 1945, territorial franchising began and has been updated<br />
several times since then. The Brazier line made its debut in 1957.<br />
IDQ owns three other brands: Golden Skillet (international franchise rights), Karmelkorn Shoppes and Orange Julius.<br />
Golden Skillet franchises, trademarks and related assets for the contiguous U.S. were assigned to a non-affiliated company in<br />
October 1992. IDQ continues to operate 13 Golden Skillet international franchises; systemwide sales in ‘99 are estimated<br />
around $7 million; average unit volumes, $560,000.<br />
In January 1998, Berkshire Hathway completed its acquisition of International Dairy Queen, Inc., taking the company private.<br />
<strong>Menu</strong> Development |<br />
Dairy Queen added a Puckerberry Blizzard to its 2004 lineup. Priced at $2.39, the 12-oz. item is a blend of soft-serve ice<br />
cream with sour raspberry flavoring. (NRN Daily NewsFax 12/17/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
321
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
DQ Grill & Chill stores are averaging two to three times the sales volume of regular Brazier units, according to International<br />
Dairy Queen. More than 20 Grill & Chill locations are in at least eight states. The company said it hopes to double the number<br />
of DQ Grill & Chill locations by year-end and then try to open at least that many more in 2004. (RB 11/15/03 p26)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
322
International House of Pancakes<br />
Headquarters<br />
450 N. Brand Blvd., Glendale, California 91203 USA<br />
Tel: (818) 240 6055 Fax: (818) 543 4179<br />
www.ihop.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,452,000 1,326,757 1,200,177<br />
Company-owned ($000) 77,000 68,810 72,818<br />
Franchised ($000) 1,375,000 1,257,947 1,127,359<br />
U.S. Number of Units 1,091 1,006 925<br />
Company-owned 76 72 71<br />
Franchised 1,015 934 854<br />
International Sales ($000) 15,000 28,000 46,000<br />
International Units 12 11 43<br />
Average Sales/Unit ($000) 1,375 1,365 1,025<br />
Concept Positioning |<br />
IHOP Corporation owns, operates, and franchises International House of Pancakes restaurants. IHOP units are full-service<br />
operations open for breakfast, lunch, and dinner, some, around the clock. The signature item, of course, is a line of pancake<br />
specialties, but the chain also serves a standard coffee shop menu.<br />
Its current prototype features a blue roof and awning and an interior with a sleek, modern look. New restaurants average 4,900<br />
sq. ft. with 176 seats. Larger kitchens are included in these units. In addition, conversion of existing restaurants from other<br />
concepts has further diversified its building design.<br />
The company also developed a 4,000 sq. ft., 132-seat prototype for smaller markets. Currently, a remodeling program is<br />
underway.<br />
The company has a purchasing cooperative among its franchisees. Further, it has entered into various long-term supply<br />
contracts to ensure food quality and consistency.<br />
The first International House of Pancakes opened in 1958. Ownership changed hands several times in the 1970s and 1980s.<br />
In May 1988, IHOP Corp. was acquired through a leveraged buyout by a group of investors (15 of whom were senior company<br />
managers). At the same time, an Employee Stock Ownership Plan (ESOP) was instituted for all full-time employees of one or<br />
more year's employment.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
323
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Breakfast items generate 45%–55% of sales and are served all day. These items include omelets, waffles, French toast, eggs,<br />
bacon, sausage, ham, corned beef hash, and juices as well as pancakes. The new “After Breakfast <strong>Menu</strong>” features chicken<br />
wings seasoned with fiery cayenne pepper sauce; double decker bacon, lettuce and tomato sandwich; chicken penne pasta<br />
with wildfire roasted vegetables; and southwestern chicken fajita salad. Dinners include London broil, golden rotisserie<br />
chicken, fried shrimp, spaghetti, burgers, sandwiches & salads. All come with a choice of soup or salad. Some units serve<br />
beer and wine. Check Averages: $6.60.<br />
Expansion Plans |<br />
IHOP Corp. plans to develop 20 units over the next four years in the Cincinnati market. Three units will be opened in 2004,<br />
and 4 units are expected to open in 2005. (NRN Daily NewsFax 11/7/03)<br />
<strong>Menu</strong> Development |<br />
IHOP launched Stuffed French Toast as a limited-time special through April 27. It features whipped cream cheese inside<br />
cinnamon raisin bread that is then dipped in the chain’s signature french toast batter and grilled. Guests then may choose from<br />
a range of fruit toppings, such as strawberries, blueberries and cinnamon apples to complement the french toast and whipped<br />
topping. The item is also being offered as part of a combo meal with breakfast favorites, including eggs, hash browns and<br />
bacon or sausage. (PR Newswire-FirstCall)<br />
IHOP is offering Paradise Pancakes through June 29. Ranging in price from $3.99–$6.99, the three varieties are: Banana<br />
Split, Macadamia Nut and South Pacific (two buttermilk pancakes topped with grilled pineapple, toasted coconut and<br />
powdered sugar with whipped topping. (NRN Daily NewsFax)<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
IHOP rolled out a limited-time collection of Super Stackers sandwiches. Available through September 28, the line includes:<br />
Savory Steak (with Cheddar cheese, mushrooms, onions, lettuce, tomatoes, mayonnaise and honey mustard sauce), Grilled<br />
Smoked Turkey (with Swiss cheese, lettuce, tomatoes, mayonnaise, green peppers and onions), and a Chicken Bacon<br />
sandwich featuring grilled chicken breast strips, Cheddar cheese, bacon, ranch dressing, tomatoes, mayonnaise, green<br />
peppers and onions on a grilled roll. (NRN Daily NewsFax, 7/3/03, PRNewswire-FirstCall, 7/10/03)<br />
IHOP debuted Stuffed Crepes as a limited-time offer. The light, golden crepes filled with eggs, meats and cheeses are being<br />
offered through December 28. Topped with sour cream and served with two buttermilk pancakes or hash browns, varieties<br />
include: ■ Grilled Ham & Swiss—filled with scrambled eggs, grilled ham and Swiss ■ Crepe Wraps Supreme—scrambled<br />
eggs, grilled ham, sausage and a blend of cheeses ■ Bacon & Cheddar—scrambled eggs, crisp bacon and Cheddar cheese.<br />
(Company Release 10/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
324
Franchise Activity |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
IHOP signed franchisee Sharp Holding Inc. to a development deal calling for the opening of eight units over the next nine<br />
years in West Virginia. The first unit is expected to open next spring. (NRN Daily NewFax 10/10/03)<br />
IHOP Corp. signed franchisee Tony Kouba to a deal calling for the opening of 22 units over the next 10 years in California,<br />
Arizona and Nevada. The first unit will open in summer 2004. Specific locations were not disclosed. (RestaurantBiz.com<br />
10/21/03)<br />
IHOP Corp. signed franchisees Michael Szawielenko and Robert Rosenberg to a developmental deal calling for the opening of<br />
seven units by 2014 in the San Diego and Palm Springs markets. (NRN Daily NewsFax 11/12/03)<br />
IHOP Corp. signed a single-unit development agreement with Maui franchisee Rennie West. West is slated to open a<br />
restaurant in Oahu, HI. Currently, West’s Maui unit is the only IHOP in Hawaii. (NRN Daily NewsFax 12/19/03)<br />
IHOP Corp. signed a three-unit development deal with existing Georgia franchisee John Koumandarakis. Currently,<br />
Koumandarakis operates three IHOP restaurants in the Atlanta area. (NRN Daily NewsFax 12/22/03)<br />
Technology |<br />
IHOP named Patrick J. Piccininno vice president of information technology. In the newly created post, Piccininno will be<br />
responsible for strategy development and execution of all technology initiatives. (Nation's Restaurant News 10/6/03 p36)<br />
Personnel |<br />
IHOP Corp. appointed Patrick J. Piccininno vice president of information technology. Previously, Piccininno served as director<br />
of information technology for Intel’s Platform Networking Group. (Franchise Times Nov.-Dec./2003 p53)<br />
News & Other |<br />
IHOP Corp. will cut its workforce by 15% and create a separate team to support its franchisees. The efforts—part of a<br />
corporate reorganization—come after the company’s announcement in January that it would transition to a franchise<br />
development business model rather than its traditional company-financed development. Its workforce reduction of 40<br />
nonrestaurant employees will result in cost reductions of about $3 million per year by 2005, when the transition to its new<br />
business model will have been completed. One-time reorganization costs are expected to be about $1.5 million. The new<br />
operations team will support franchise operators’ efforts, which will be most needed in the early stages of a restaurant. Under<br />
the previous business model, IHOP financed and opened restaurants for its franchisees, only turning the reins over to its<br />
franchise owner once the company made sure the restaurant was producing a predictable revenue stream. In related news,<br />
IHOP expanded development agreements with 37 existing franchisees under its new growth model. The deals, ranging from<br />
five- to 10-year commitments, will add 130 restaurants in 25 states. (NRN 8/4/03 p1; NDNF 8/5/03)<br />
IHOP Corp. signed a 29-unit development agreement with its largest franchisee, Joseph J. Katin. The units are to be opened<br />
over a period of 12.5 years. The agreement gives Katin exclusive rights to develop IHOP restaurants in a “large portion” of<br />
Texas. Earlier this year, IHOP switched from its system of financing turnkey franchises to a traditional franchise development<br />
program. (NDNF 9/10/03)<br />
IHOP Corp. for the third quarter ended September 30, reported same-store sales increased 4.7% compared to the same<br />
quarter a year ago. (NRN Daily NewsFax 10/20/03)<br />
IHOP Corp. for the third quarter, reported comparable-store sales increased 4.7%. (RestaurantBiz.com 10/27/03)<br />
IHOP Corp. for the third quarter ended September 30, reported revenues increased 14% to $104.8 million compared to the<br />
same quarter last year. Systemwide sales increased 15% to $430 million. (Nation’s Restaurant News 11/3/03 p12)<br />
IHOP Corp. took control of eight underperforming franchised units and is in the process of seizing more. Operators rated “D” or<br />
“F” by mystery shop initiatives will be seized and turned over to higher-rated franchisees. (Restaurant Business Daily News<br />
10/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
325
<strong>RISE</strong> COMPANY PROFILE<br />
IHOP’s largest shareholder told securities regulators that it has renewed confidence in the chain’s management and that it<br />
would no longer need to advise the restaurant company on financial matters. Two years ago, Southeastern Asset<br />
Management, which controls 3.1 million shares or 14.7% of IHOP’s common stock, converted from 13G status, or passive<br />
investment, to the 13D category, allowing the fund manager to have a say in IHOP’s finances. By mid-November of this year,<br />
when Southeastern gave notice of the filing status change, IHOP’s stock value had risen by more than 100%. In other news,<br />
IHOP said it plans to invest $20–$25 million to develop up to 20 corporate-owned restaurants over the next four years in the<br />
Cincinnati market. In addition, IHOP signed a 22-unit development deal with Landmark Restaurant Group, a two-unit Los<br />
Angeles franchisee, for more units in California, Arizona and Nevada over the next 10 years. And finally, 500 stores in the<br />
IHOP system recently moved to 24-hour operation at least two nights per week. A company spokesperson noted that the<br />
region with the system’s highest sales average is made up almost entirely of units that operate 24 hours daily. (NRN 11/17/03<br />
p60 & 12/1/03 p11; RB 11/15/03 p16)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
326
Islands Restaurants<br />
Headquarters<br />
5750 Fleet Street Suite 120, Carlsbad, California 92008 USA<br />
Tel: (760) 268 1800 Fax: (760) 918 1500<br />
www.islandsrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 101,000 90,000 -<br />
Company-owned ($000) 101,000 90,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 38 34 -<br />
Company-owned 38 34 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,800 2,700 -<br />
Concept Positioning |<br />
Islands is a limited service hamburger restaurant located primarily in Southern California and Arizona.<br />
Units are largely freestanding and average 6,000 sq. ft, with seating for up to 200 patrons. Décor is designed to resemble a<br />
tropical setting, complementing the diverse and expansive menu. The exterior has occidental and California-casual influences,<br />
and the interior is reflective of the tropical theme.<br />
Tony DeGrazier, current chief executive officer, founded Islands in 1982 with the opening of the first restaurant in West Los<br />
Angeles. Currently, the company is focused on expanding in Southern California and Arizona with the addition of 4–5 units a<br />
year.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item—Hamburgers that come in a variety of styles, including the Bleumani, hamburger pattie topped with blue<br />
cheese dressing, tomato, lettuce, red onion and blue cheese. Also offers rotiesserie chicken, soft tacos, salads, including the<br />
China Coast which features red cabbage and fried noodles, chicken and sesame seeds, and sides such as quesadillas and<br />
tortilla soups. <strong>Menu</strong> Prices: $1.99–$8.99.<br />
Personnel |<br />
Tony DeGrazier, Chief Executive Officer<br />
Rob Richards, Chief Financial Officer<br />
Doug Kollus, President<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
327
J. Alexander's<br />
Headquarters<br />
3401 West End Ave., Nashville, Tennessee 37203 USA<br />
Tel: (615) 269 1900 Fax: (615) 269 1939<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 99,000 91,206 87,511<br />
Company-owned ($000) 99,000 91,206 87,511<br />
Franchised ($000) - - -<br />
U.S. Number of Units 24 24 22<br />
Company-owned 24 24 22<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,200 4,077 3,977<br />
Concept Positioning |<br />
J. Alexander’s is a full-service concept featuring contemporary American fare in a casual-dining atmosphere. Service and<br />
quality are emphasized in its restaurants, and all menu items are made-from-scratch.<br />
Units, open for lunch and dinner from 11 a.m.– midnight, are found in freestanding and mall locations and are around 7,400<br />
sq. ft. with seating for 230 guests. Exteriors use a craftsman-style architecture with stone, stained woods and weathered<br />
copper. Interior ambience is created with the use of slate, concrete, stone and glass. A patio-like garden seating area is used<br />
as a waiting area. Newer units follow a more modern décor, with exposed steel, concrete and glass incorporated into the<br />
interior. While maintaining the garden seating, these restaurants also feature angled window wall projections for a more<br />
focused interior.<br />
J. Alexander’s was founded in Nashville in 1991 by Volunteer Capital Corp., a Wendy’s franchisee. In 1996, the company<br />
divested its Wendy’s restaurants and changed its name to J. Alexander’s Corp. Expansion has been steady with<br />
approximately three to four units opened each year. Current management includes Lonnie J. Stout, chairman, president and<br />
chief executive officer; R. Gregory Lewis, chief financial officer; and Ronald E. Farmer, vice president development.<br />
<strong>Menu</strong> Positioning |<br />
Features hardwood grilled steaks, seafood, chicken, pasta, salads, soups, sandwiches and homemade desserts. Specific<br />
selections tailored to local market needs. Specialties include a Pasta La Louisiane—shrimp and scallops in a Cajun cream<br />
sauce over linguini and garnished with thyme; Penne Milano—sautéed chicken and mushrooms with homemade marinara<br />
sauce; Steak Brazzo—marinated tenderloin medallions of beef in Madeira mushroom sauce. Dinner orders served with side<br />
items such as Maytag Bleu Cheese Cole Slaw, Orzo and Wild Rice, Smashed Potatoes, Loaded Baked Potatoes and Tequila<br />
Beans. Full liquor service; currently 15% of sales. <strong>Menu</strong> Prices: $5.95–$24. Check Averages: $15.38.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
328
Personnel |<br />
Lonnie Stout, Chairman<br />
R. Gregory Lewis, Chief Financial Officer<br />
Jim Filaroski, Chef<br />
Mary Bullock, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Consumer Reports’ annual survey of readers found that 69% were completely or very satisfied with their dining experiences at<br />
the 88 largest U.S. chain restaurants. The survey’s 71,000 responses represented nearly 166,000 meals eaten between April<br />
2001 and April 2002. For a chain to be included in the survey results, it had to be mentioned in at least 350 responses. New on<br />
this year’s list were J. Alexander’s; Maggiano’s Little Italy; Azteca Mexican; Hops Restaurant, Bar & Brewery; McCormick &<br />
Schmick’s; and P.F. Chang’s China Bistro. Capturing the top ranking in seven of the survey’s eight ratings categories was First<br />
Watch, a Sarasota, FL-based chain of 44 daytime-only restaurants. (NRN 6/30/03 p38)<br />
Households with annual incomes exceeding $200,000 are 86% more likely to include wine drinkers than the average American<br />
household, according to Mediamark Research Inc., New York, NY. Of those in the highest income bracket, 52% said they<br />
drink wine compared with 28% of those earning between $50,000 and $74,999 and just 15% of Americans with household<br />
incomes of less than $25,000. (AD 6/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
329
Jack in the Box<br />
Headquarters<br />
9330 Balboa Ave., San Diego, California 92123-1516 USA<br />
Tel: (858) 571 2121 Fax: (858) 694 1571<br />
www.jackinthebox.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Qdoba Mexican Grill<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,253,720 2,157,920 1,983,319<br />
Company-owned ($000) 1,829,784 1,749,093 1,587,640<br />
Franchised ($000) 423,936 408,827 395,679<br />
U.S. Number of Units 1,875 1,791 1,666<br />
Company-owned 1,517 1,457 1,346<br />
Franchised 358 334 320<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,227 1,259 1,179<br />
Concept Positioning |<br />
Jack in the Box is a chain of adult-oriented fast food restaurants offering sit down, carryout, and drive-through service, which<br />
accounts for approximately 65% of sales. Most units are open 18 hours a day for breakfast, lunch, dinner and snacks.<br />
The majority of the units are freestanding, with several configurations seating 20–100, and a drive-through window. (Jack in<br />
the Box pioneered the drive-through only concept.) The majority of units have been upgraded to feature new signs, lighting,<br />
landscaping and decor.<br />
Jack in the Box was founded in San Diego in 1950. Its Supreme sandwich line was rolled out between 1980 and 1981 as part<br />
of efforts to move away from the children's segment of the fast food market. Foodmaker, Inc., the former name of Jack in the<br />
Box's parent, went private through a leveraged buyout in 1985, public in 1987,private in 1988 and then public again in early<br />
1992.<br />
In early 1994, Foodmaker completed its sale of Chi-Chi's to Family Restaurants, Inc. as part of a prepackaged<br />
merger/acquisition plan with Restaurant Enterprises Group, Inc. By the end of fiscal 1995, Foodmaker had sold all of those<br />
holdings. In October 1999, the company changed its corporate name to Jack in the Box, Inc.; the trading symbol changed to<br />
JBX. A new 70,000 sq. ft. Innovation Center is expected to be completed in 2004. The building will serve as the center for<br />
menu development and a renewed focus on menu innovation and food quality. In 2003, Jack in the Box acquired Qdoba<br />
Mexican Grill for $45 million cash. Qdoba, a fast-casual Mexican chain, gives Jack in the Box a Mexican concept to compete<br />
with McDonald's Chipotle and Wendy's Baja Fresh.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
330
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
45–50 items including hamburgers, Mexican favorites, salads, finger foods and specialty sandwiches; some 75% of sales nonburger<br />
items. Premium hamburgers: Ultimate Cheeseburger and the Jumbo Jack Sourdough Jack. Also chili cheese, curly<br />
fries and Oreo Cookie Shake. On average adds 2–3 new items each year. Breakfast includes many traditional favorites and<br />
combos as well as croissant breakfast sandwiches. Check Average: $4.70.<br />
Expansion Plans |<br />
Jack in the Box suspended its efforts for new store growth in the Southeast markets to allow existing units time to mature.<br />
Currently, there are 77 units in Tennessee, North Carolina and South Carolina. (Restaurantbiz.com 9/17/03)<br />
<strong>Menu</strong> Development |<br />
Jack in the Box will launch a line of premium Jack’s Ultimate Salads. These new offerings allow guests to customize their<br />
meals by packaging toppings such as almonds, croutons, wonton strips and dressings separately. Further, the chain is also<br />
offering additional salad dressings—ranch, lite ranch and low-fat balsamic vinaigrette—beyond the options provided with each<br />
salad. Selections include: ■ Asian Chicken Salad—blend of spring-mix greens topped with grilled chicken strips, red onion<br />
slices, shredded carrots, mandarin orange slices, Blue Diamond roasted slivered almonds, wonton strips and Asian sesame<br />
dressing ■ Chicken Club Salad—blend of spring-mix greens topped with grilled chunks of chicken, shredded cheddar cheese,<br />
grape tomatoes, red onion slices, cucumbers, bacon bits, seasoned croutons, Blue Diamond country ranch flavored sliced<br />
almonds and bacon ranch dressing ■ Southwest Chicken Salad—blend of spring-mix greens topped with chunks of fajita-style<br />
chicken, black beans, roasted sweet corn, grape tomatoes, red onion slices, spicy pepper Jack cheese, spicy corn sticks and<br />
creamy southwest dressing. (Business Wire)<br />
Jack in the Box launched a $3.29 Turkey Jack Burger at participating restaurants. The new offering, which includes three<br />
slices of Swiss cheese and mayo-onion sauce, has 700 calories and 32 grams of fat. (Nation’s Restaurant News, 7/14/03, p3)<br />
Jack in the Box is streamlining its menu as part of a transformation to enhance its appeal to women. The chain has already<br />
eliminated approximately 10 items, with further deletions planned to make way for healthier offerings. Among the items already<br />
eliminated are: taquitos, cheese sticks, chicken teriyaki bowl, chili-and-cheese topped curly fries, a chili cheeseburger and root<br />
beer float. (Restaurant Business 10/15/03 p8)<br />
Jack In The Box will serve a bunless and sauceless sandwich beginning January 5, 2004. (NRN Daily NewsFax 12/22/03)<br />
Jack in the Box launched a line of deli sandwiches called Classics on a Roll. Each features meats and cheeses on a hearthbaked<br />
roll. Varieties include a Roast Turkey Classic with oven-roasted turkey, Swiss style cheese, tomatoes, lettuce and herbmayo<br />
sauce and an Ultimate Club with the same turkey, hickory-smoked ham, Swiss-style cheese, lettuce, tomatoes and<br />
mayo-onion sauce. Suggested retail price is $3.79. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 11/28/03)<br />
Personnel |<br />
Robert Nugent, Chief Executive Officer<br />
John Hoffner, Chief Financial Officer<br />
Linda Lang, President<br />
Paul Schultz, Senior Vice President of Operations<br />
Terri Graham, Vice President of Marketing<br />
Jack in the Box Inc. promoted William F. Motts to senior vice president of restaurant development. (Company Release<br />
9/19/03)<br />
Jack in the Box promoted Linda Lang president. Lang replaces Ken Williams who retired last year. (Restaurant Business p. 12<br />
12/15/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
331
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Jack in the Box is already planning for the first of its eight restaurant/gas stations. Documents filed with the Kern County<br />
Planning Department for a unit in Rosamond, CA, call for a standard-sized Jack in the Box unit that will occupy 4,971 sq.ft. of<br />
the proposed 6,971 sq.ft. building. The company’s Quick Stuff minimart will take up the remaining space. Both concepts will<br />
share a common restroom area. The restaurant/gas station will sit on a 1.6-acre lot and offer ATM and pay-at-the-pump<br />
service 24 hours a day. It is expected to seat 40–68 people. (QSR 3/03 p11)<br />
Jack in the Box was preparing an April launch for its “Jack’s Ultimate Salads” line. Priced between $4 and $5, the three<br />
varieties are an Asian Chicken Salad topped with almond slivers, wonton strips and sesame dressing; a Chicken Club Salad,<br />
with a blend of spring-mix greens topped with grilled chicken, cheddar cheese, grape tomatoes, red onions, cucumbers, bacon<br />
bits, croutons, almonds and bacon-ranch dressing; and a Southwest Chicken Salad, featuring fajita-style chicken, black beans,<br />
roasted sweet corn, grape tomatoes, red onion, pepper jack cheese, corn sticks and Southwest dressing. Many of the salad<br />
toppings come in separate packages to allow guests to customize a salad to their taste. Other available dressings will include<br />
ranch, light ranch and low-fat balsamic vinaigrette. (NDNF 4/9/03)<br />
Population shifts affect the restaurant industry. Emerging chains often look to population trends and try to respond<br />
appropriately; so many must have found recent U.S. Census Bureau data intriguing. The bureau revealed that Hispanics have<br />
become the country’s largest minority group with about 37 million people, with blacks numbering approximately 36 million.<br />
Studies also show that Hispanics are the third largest-spending ethnic group after whites and blacks. The greater the Hispanic<br />
community in the U.S., the more influence it likely has on all Americans and the food industry. Their culture, particularly the<br />
cuisine, spreads as Hispanic chefs prepare Latin-inspired foods and entrepreneurs open more such restaurants. The<br />
increased supply of Mexican and Latin fare seems welcome considering Americans have more adventuresome tastes than<br />
ever and increasingly indulge in ethnic fare. Naturally, this increased acceptance propels demand so more concepts emerge to<br />
feed it. In fact, <strong>Technomic</strong> believes the Mexican quick-casual segment in particular will double over the next five years. New<br />
competitors are sprouting up within the U.S. while several promising chains are being imported from Latin America and<br />
Mexico. These chains seem to cater well to those seeking authentic “south of the border” foods. The Wall Street Journal<br />
recently reported on such imported concepts that are worth watching, including: · Churromania—limited-service churro chain,<br />
imported in 2001 · Pollo Campero—limited-service chicken chain, imported in 2002 · El Fogoncita—quick-casual pork taco<br />
chain, imported in 2003 · Gorditas Dona Tota—limited-service cheese pastry chain, imported 2003 · El Tizoncito—quickcasual<br />
pork taco chain, imported 2003 Major restaurant companies have already invested in the segment. Jack in the Box<br />
bought Qdoba Mexican Grill this past February; Wendy’s International is invested in Baja Fresh Mexican Grill; and McDonald’s<br />
owns Chipotle Mexican Grill. The list of emerging chains with Mexican and Latin influences, including Southwestern fare, that<br />
we’re tracking includes Salsarita’s Fresh Burrito (6 units, profiled in this issue); Z’Tejas (12 units); La Salsa (96 units);<br />
Pancheros Mexican Grill (9 units); Chico’s Tacos (23 units); Burrito Beach (5 units); Burritoville (12 units); Taqueria Cantina<br />
and Burrito Joint (10 units); Left at Albuquerque (8 units); Atomic Burrito (3 units); Blue Mesa Grill (4 units); and Tia’s Tex Mex<br />
(29 units). While the number of Hispanics escalates, the amount of Americans in general who enjoy Mexican and Latin fare<br />
seems to grow as well, painting a bright future for Mexican and Latin-inspired concepts.<br />
Jack in the Box planned to launch its first turkey burger in early July at participating restaurants. It has a suggested price of<br />
$3.29. Customers also may substitute a turkey patty in any of their favorite burgers for an additional 50¢ per patty. (NDNF<br />
7/1/03)<br />
Jack in the Box’s new Turkey Jack burger substitutes a ground-turkey patty for ground beef. Priced at $3.29, the sandwich’s<br />
700 calories are the same as the chain’s Big Cheeseburger and quite a bit higher than the 390-calorie Chipotle Chicken<br />
Sandwich rolled out earlier this year. Customers also may substitute the turkey patty in Jack’s Bacon Ultimate Cheeseburger,<br />
Chili Cheeseburger or other burgers for an additional 50¢. (R&I 8/15/03 p19)<br />
Qdoba Mexican Grill has signed development agreements for a total of 44 units in Colorado, New Jersey, Michigan and<br />
Illinois. Qdoba, owned by Jack in the Box, has more than 100 outlets in 20 states. (NRN 8/25/03 p84)<br />
Jack in the Box plans to reinvent its 1,900-unit namesake chain over the next three to five years in an effort to reduce its<br />
reliance on discounting; upgrade facilities and service; and introduce new premium products. New menu items, some of which<br />
will be available beginning in 2004, would target population segments such as women and older men rather than the chain’s<br />
current core market of 18- to 34-year-old males. The chain is developing a new prototype restaurant and plans to remodel its<br />
entire store base within the next five years. Two outlets of the prototype are expected to open in San Diego by early next year.<br />
As the company announced its new strategic plan, it also offered a sharply lowered earnings outlook for 2004, with profits next<br />
year projected to be 18% below results for fiscal 2003. The company attributed the earnings slide primarily to reduced gains<br />
and fees from franchise conversions and increased insurance and pension costs. Jack in the Box also plans to expand Qdoba<br />
Mexican Grill, which it acquired in early 2003. It plans to open 38 company-owned outlets and 69 franchised ones in 2004. The<br />
rapidly growing quick-casual Mexican chain currently numbers about 100 stores. (NRN 9/29/03 p1; FIR 9/22/03 p2)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
332
<strong>RISE</strong> COMPANY PROFILE<br />
Jack in the Box saw fourth-quarter sales soar and named a new president. The company said that new main-course salads, a<br />
Turkey Jack turkey burger and the Creamy Caramel Shake helped to boost sales as it launches a reinvention of itself. The<br />
2,000-plus-unit chain reported a 17% rise in fourth-quarter (ended September 28) earnings and credited the new menu items<br />
with increasing same-store sales. The company also said that customer response has been positive for its new, all–white meat<br />
Chicken Breast Strips, which were introduced in October and are sliced from whole breasts. In addition, Jack in the Box has<br />
launched Classics on a Roll. The premium sandwiches, priced at $3.79, include a roasted turkey option and Ultimate Club. In<br />
related news, Linda A. Lang was promoted to president, chief operating officer and a member of the company’s board. She<br />
previously served as senior vice president of marketing. (NRN 11/24/03 p4; FIR 12/1/03 p6; NDNF 12/1/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
333
Jamba Juice<br />
Headquarters<br />
1700 17th St., San Francisco, California 94103 USA<br />
Tel: (415) 865 1100 Fax: (415) 487 1143<br />
www.jambajuice.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 202,044 186,836 159,111<br />
Company-owned ($000) 109,000 100,000 134,000<br />
Franchised ($000) 93,044 86,836 25,111<br />
U.S. Number of Units 354 338 330<br />
Company-owned 184 174 260<br />
Franchised 170 164 70<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 550 550 515<br />
Concept Positioning |<br />
Jamba Juice is a limited service specialty chain that was founded with the idea of enriching people’s lives through the lifenourishing<br />
qualities of fruits and vegetables. Units, which generally seat fewer than 12 people, feature a bright and lively<br />
atmosphere filled with warm, natural lighting and vibrant colors. Shiny chrome blenders, natural wood counters and cabinetry,<br />
textured tile floors and upbeat music add to the hip and rustic decor.<br />
In addition to its regular store development activities, Jamba Juice entered into a licensing agreement with Whole Foods<br />
Market that allows the retailer to use the Jamba Juice trademark in specific markets. Seventeen such operations are up and<br />
running and an agreement has been signed to open 75 more over the next 3 years. Jamba Juice is also testing units inside<br />
24-Hour Fitness, a start-up chain of health clubs. Jamba GoGo serves as its full service-catering arm.<br />
Jamba Juice was founded under the name Juice Club and the first store was opened in San Luis Obispo, CA, in 1990 by Kirk<br />
Perron. Soon thereafter franchising began. In 1998 and 1999, the company repositioned itself, changing the name to Jamba<br />
Juice. In spring 1999, the company acquired Zuka Juice, Salt Lake City, its primary competitor, giving the company 96<br />
additional units that have largely been rebranded to the Jamba Juice name. In July 1999, the company partnered with Prophet<br />
Brand Strategy to develop Jamba Juice’s long-term brand strategy.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: assortment of made-to-order blended fruit smoothies. Also serves fresh squeezed fruit and vegetable juices,<br />
Juice Boosts—6 different blends of vitamins, minerals, herbs and other nutrients to answer specific nutritional needs. Recent<br />
additions include soups that meet FDA “Heart-healthy Standards”. Also menus soups, all natural low-fat pretzels and<br />
proprietary high-nutrition breads and other healthy snacks. <strong>Menu</strong> Prices: all under $4.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
334
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Jamba Juice is now focusing on its core smoothie products after discontinuing its soup menu. The chain had offered four<br />
soups for four years, but decided the line had not generated enough sales to justify maintaining it. (Nation’s Restaurant News)<br />
Jamba Juice is emphasizing pineapple-themed smoothies through October 1. In addition to its already popular Aloha<br />
Pineapple (pineapple juice, strawberries, bananas, pineapple sherbet and nonfat yogurt) and Peenya Kowlada (pineapple<br />
juice, coconut, bananas, pineapple sherbet and nonfat frozen yogurt), the chain also launched two new smoothies.<br />
Pineapplepalooza combines pineapple, pineapple juice, orange juice and pineapple sherbet, while Pineapple Upside-Down<br />
Juice blends orange juice, pineapple juice and pineapple. (Business Wire, 7/7/03)<br />
Jamba Juice added a 16-oz. beverage size to its menu. To promote the new size, the company is offering a free 16-oz.<br />
smoothie on October 23 between 3 p.m. and 6 p.m. with a $1 donation to benefit California Children’s Hospital Association.<br />
(NRN Daily NewsFax 10/21/03)<br />
Jamba Juice added a smaller 16-oz. beverage size to its menu. It previously offered its smoothies and juices in 24- and 36-oz.<br />
sizes. (NRN Daily NewsFax 10/21/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
335
Jason's Deli<br />
Headquarters<br />
2400 Broadway, Beaumont, Texas 77702 USA<br />
Tel: (409) 838 1976 Fax: (409) 838 1906<br />
www.jasonsdeli.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 203,000 170,000 152,800<br />
Company-owned ($000) 128,000 110,000 100,785<br />
Franchised ($000) 75,000 60,000 52,015<br />
U.S. Number of Units 120 104 88<br />
Company-owned 74 64 54<br />
Franchised 46 40 34<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,850 1,750 1,866<br />
Concept Positioning |<br />
Jason's Deli considers itself part deli and part family restaurant. Offering an extensive menu of traditional and not so traditional<br />
deli items, all may be ordered and purchased through its cafeteria-style format. Typical units, which seat 165 customers and<br />
average 4,200 - 5,000 sq. ft., feature black floors, Formica counter tops and black and white photos of marketplaces. Box<br />
lunches and catering are available.<br />
Current expansion plans call for the development to 12–24 delis a year.<br />
Jason's first unit was opened in 1976 in Beaumont, TX, by Joe Tortorice, Jr. A family-run business, founder Tortorice serves<br />
as president of the company. Other family members also hold key management positions and include Rusty Coco, executive<br />
vice president; Pete Verde, chief operations officer; and Troy Cormier, chief financial officer.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong>s over 50 varieties of sandwiches, along with baked potatoes, soups and salads. Also features line of healthy heart items<br />
with less calories, sodium, cholesterol and fat grams than other menu items. Most popular items: Reuben and heart healthy<br />
turkey Reuben. Sandwiches served with chips, pretzels, fruit, German potato salad or steamed vegetables. Soft-serve ice<br />
cream is complimentary. <strong>Menu</strong> Prices: $1.99–$8.95. Check Averages: $5–$7.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
336
Personnel |<br />
Joe Tortorice, Chief Executive Officer<br />
Troy Cormier, Chief Financial Officer<br />
Pete Verde, Chief Operating Officer<br />
Sharon Begnaud, Director of Marketing<br />
Lee Greer, Director of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Jason’s Deli has almost completed its systemwide renovation of company stores. Among the changes are a new tile floor,<br />
arched walls with sconces, buff and burgundy colors and new furniture. The renovations began in third quarter 2002 and were<br />
designed to give restaurants a New Orleans look. The new décor is being well-received by customers, as Jason’s posted a<br />
4.5% increase in same-store sales for the past year. (NRN 11/3/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
337
Jersey Mike's Subs<br />
Headquarters<br />
1973 Highway 34, Wall, New Jersey 07719 USA<br />
Tel: (732) 282 2323 Fax: (732) 282 2233<br />
www.jerseymikes.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 85,600 83,400 -<br />
Company-owned ($000) 400 400 -<br />
Franchised ($000) 85,200 83,000 -<br />
U.S. Number of Units 244 230 -<br />
Company-owned 1 1 -<br />
Franchised 243 229 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 385 385 -<br />
Concept Positioning |<br />
Jersey Mike's is a limited-service sandwich chain that adheres to "Jersey-Shore style." Since its inception, the restaurant has<br />
positioned itself as the different sandwich chain. An example is in the preparation, all meats are sliced to order.<br />
Units are largely freestanding. Units are noted for their bare décor, which shifts customers' attention to the food—its<br />
preparation and appeal—and to the employees. Besides being known for it food, Jersey Mike's is also well established as a<br />
friendly place, where customers and employees chat while an order is being completed. This type of atmosphere has fueled<br />
the chain's growth and has polished its reputation.<br />
Preparation is also a distinguishing feature of Jersey Mike's. Beside slicing meat to order, the restaurant also produces its own<br />
private label of premium meats, creating sandwiches with proscuittino, cappacuolo and Black-Angus certified rounds. Bread is<br />
cook in-house, and rolls are overstuffed with meats and fillings.<br />
The original Jersey Mike's Subs was opened in 1956 in Point Pleasant, NJ. Nearly twenty years later, in 1975, Peter Cancro<br />
bought the restaurant at the age of 17 with some help from his high school football coach. Franchising began in the 1987. Key<br />
personnel include Cancro, president, and John Haulenbeek, chief operating officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item—Hot and cold subs. Premium sandwiches include the Cheese, Proscuittini and Cappacuolo sub; the Jersey<br />
Mike's Super Sub, which includes Cheese, Boiled Ham, Proscuittini, Cappacuolo; and the Original, Cheese, Boiled Ham,<br />
Proscuittini, Cappacuolo, Salami, and Pepperoni. Subs come are up to 14 inches long. Soup and salads are also available.<br />
Check Average: $9.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
338
Jillian's Billiard Club & Cafe<br />
Headquarters<br />
4500 Bowling Blvd. Suite 200, Louisville, Kentucky 40207 USA<br />
Tel: (502) 638 9008 Fax: (502) 638 0984<br />
www.jillians.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 210,000 200,000 170,000<br />
Company-owned ($000) 210,000 200,000 170,000<br />
Franchised ($000) - -<br />
U.S. Number of Units 40 38 28<br />
Company-owned 40 38 28<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,700 5,600 6,071<br />
Concept Positioning |<br />
With a mix of billiards, bowling, video and interactive games, family entertainment and two restaurant areas, Jillian’s Billiard<br />
Club and Café is a multi-concept facility. The Video Café features American style food, including burgers and pizza, in a sports<br />
bar setting with 15 big-screen TVs. The Hibachi Grill has tableside food preparation with a rock-and-roll theme.<br />
<strong>Menu</strong> Positioning |<br />
The Hibachi Grill menu includes steak, chicken, shrimp, scallops and white or fried rice. Besides the pizza and burger<br />
offerings, the Video Café menu includes white chicken chili, chipotle ribeye, shrimp scampi fettuccini and salads.<br />
Personnel |<br />
Daniel Smith, Chief Executive Officer<br />
Joseph Dziemianzuk, Senior Vice President of Operations<br />
Rick Vance, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
339
Joe's Crab Shack<br />
Headquarters<br />
1510 W. Loop South, Houston, Texas 77027 USA<br />
Tel: (713) 850 1010 Fax: (713) 386 7709<br />
www.landrysseafood.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 350,000 325,500 283,800<br />
Company-owned ($000) 350,000 325,500 283,800<br />
Franchised ($000) - - -<br />
U.S. Number of Units 120 109 105<br />
Company-owned 120 109 105<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,000 2,900 2,702<br />
Concept Positioning |<br />
Joe's Crab Shack specializes in crabs cooked any way imaginable from Northwest Florida stone crabs and Gulf coast blue<br />
crabs to Dungeness and Alaskan king. Owned and operated by Landry’s Seafood Restaurants, it is considered the company’s<br />
primary growth vehicle.<br />
The current prototype, developed in 1997, averages 6,000 sq. ft. with a 2,000 sq. ft. patio. The decor, described as old fishing<br />
camp with weathered wood facade, tin roof, and raised outdoor deck, creates a fun and casual atmosphere through the use of<br />
newspaper covered tables, rustic picnic benches, wall hanging life preservers and funky signs, and mallets for utensils. Older<br />
units are around 13,000 sq. ft. with interiors at 8,000 sq. ft. and the rest as a patio. Many units have a small playground for kids<br />
next to the family dining area.<br />
Originally founded by Joe and Jenny Weiss, Joe's Crab Shack was acquired by Landry's Seafood Restaurants in 1994.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: more than ½ dozen varieties of crabs. Can be ordered steamed, grilled, stuffed, barbecued or boiled. Also<br />
menus appetizers, salads, sandwiches, pastas, mesquite grilled dinners and seafood favorites such as fried oysters, coconut<br />
shrimp, stuffed crab and fried catfish. <strong>Menu</strong> Prices: $5.99–$13.99; market price for Alaskan king crab legs. Check Averages:<br />
$12–$14.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
340
Personnel |<br />
Paul West, Chief Financial Officer<br />
Richard Ervin, Vice President of Operations<br />
Joe Leahey, Director of Purchasing<br />
Toni Niece, Vice President of Marketing<br />
Tilman Fertitta, Chairman<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Joe’s Crab Shack reports than its average table-turn time is one hour. The 120-unit chain’s managers use headsets and<br />
handheld and overhead paging to communicate while walking dining rooms every 10 minutes to evaluate table status. (R&I<br />
11/1/03 p83)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
341
Johnny Carino's Country Italian<br />
Headquarters<br />
20308 Hwy 71 West, Spicewood, Texas 78669 USA<br />
Tel: (512) 263 0800 Fax: (512) 263 8055<br />
www.fired-upinc.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 106,676 69,543 -<br />
Company-owned ($000) 77,478 61,804 -<br />
Franchised ($000) 29,198 7,739 -<br />
U.S. Number of Units 53 34 -<br />
Company-owned 37 28 -<br />
Franchised 16 6 -<br />
International Sales ($000) 2,897 2,023 -<br />
International Units 4 4 -<br />
Average Sales/Unit ($000) 2,500 2,435 -<br />
Concept Positioning |<br />
Johnny Carino’s Country Italian is a casual dining concept that offers authentic country Italian dining. Carino’s menu offers<br />
quality food served in generous portions at value prices. A typical restaurant averages 6,000 sq. ft.<br />
Johnny Carino’s is part of Fired Up, Inc., established in 1997 by former Brinker International executives Creed Ford III and<br />
Norman Abdallah. Fired Up has 60 locations with a variety of concepts, including Johnny Carino’s, Kona Ranch Steakhouse<br />
and the recently acquired Gumbo’s Louisiana Cafés. The company also operates the Brown Bar concept.<br />
The company has development agreements for over 455 Johnny Carino’s to be developed by 20 franchise partners<br />
throughout the United States and the Middle East, including Egypt, Kuwait and Bahrain. Fired Up intends to expand 12–14<br />
company restaurants a year and continue franchise growth of multi-unit Johnny Carino’s. Fired Up expects that the mature<br />
Johnny Carino’s chain will be 70% franchised and 30% company owned.<br />
<strong>Menu</strong> Positioning |<br />
The chain features traditional Italian cuisine served both individually and family style. <strong>Menu</strong> items include appetizers, salads,<br />
wood-fired pizzas and pastas, as well as veal, seafood and chicken specialties. Entrees range from traditional favorites like<br />
homemade lasagna and wood-fired pizzas to featured items like spicy shrimp and chicken, chicken scaloppini, baked cheese<br />
tortelloni and jalapeño lime tilapia, all served with salad and fresh baked bread. All solo dinners are served with bread and a<br />
choice of soup or house salad. Carino’s also caters to families with their “Grandioso” platters, which feed two to three people.<br />
The check average is $11.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
342
Technology |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Fishbowl, an e-mail marketing services firm, assists its clients in sending more than 2 million e-mail messages a month on<br />
behalf of about 60 restaurant chains, including Buca di Beppo, Johnny Carino’s Country Italian, Maggiano’s Little Italy and<br />
Texas Roadhouse. The company also specializes in database management; creation of e-mail content; survey planning<br />
strategies; and updates of e-mail materials to support quarterly marketing goals. Fishbowl clients pay a $7,500 set-up fee and<br />
from $100–$300 per restaurant per month, depending on the database size. Fishbowl client Red Robin Gourmet Burgers is<br />
rolling out a marketing program using e-mail to build brand awareness and guest loyalty. The 198-unit chain decided on this<br />
strategy after successfully testing a guest loyalty program created by Fishbowl. In the eight-restaurant pilot, the company said<br />
it received measurable results that e-mail marketing works. (NRN 5/19/03 p174)<br />
News & Other |<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
343
Johnny Rockets<br />
Headquarters<br />
26970 Laguna Hills Dr., Aliso Viejo, California 92656 USA<br />
Tel: (949) 643 6100 Fax: (949) 643 6200<br />
Ownership: Private<br />
Segment: Full Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 139,000 135,000 131,000<br />
Company-owned ($000) 64,000 63,000 62,000<br />
Franchised ($000) 75,000 72,000 69,000<br />
U.S. Number of Units 132 129 129<br />
Company-owned 61 60 60<br />
Franchised 71 69 69<br />
International Sales ($000) 9,000 5,000 7,000<br />
International Units 10 8 12<br />
Average Sales/Unit ($000) 1,150 1,125 1,033<br />
Concept Positioning |<br />
Johnny Rockets is a chain of restaurants that are reminiscent of the 1940s malt shops that has been designed to appeal to<br />
young professionals and families. Key to its appeal is the ambience created with vintage chrome jukeboxes that play songs for<br />
a nickel, neon signage and artifacts of the period as well as a U-shaped black and chrome counter and red bar stools—all in<br />
an average of 1,500 sq. ft. It also stresses service and high energy levels among its staff to add an entertainment element to<br />
the dining experience.<br />
A line of Rocketware branded retail merchandise is also available at each unit. Items include aprons, key chains, hats, t-shirts<br />
and sweatshirts.<br />
Ronn Teitelbaum opened the first Johnny Rockets in 1986 in Los Angeles. In late 1995, a group of private investors acquired<br />
majority interest in the company.<br />
<strong>Menu</strong> Positioning |<br />
All-American hamburger & malt shop fare including 5 signature hamburgers, hand-dipped shakes, malts and floats as well as<br />
American fries & onion rings. Also menus sandwiches such as chicken club, BLT, tuna salad and grilled cheese, hot dogs,<br />
salad, chili & flavored cola drinks. <strong>Menu</strong> Prices: $2.85–$5.95. Check Average: $5.75.<br />
Expansion Plans |<br />
Todai, the all-you-can-eat Japanese seafood buffet concept, plans to open a restaurant in Seattle. To be located in the<br />
downtown Pacific Place shopping center, the unit is expected to seat 300 and will share its fourth-floor location with Johnny<br />
Rockets, Gordon Biersch Brewery Restaurant and Desert Fire: A Southwestern Grill. The region's large Asian community was<br />
one of the deciding factors for Todai to open downtown. (Nation's Restaurant News 11/10/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
344
Technology |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Johnny Rockets is implementing Aloha Technolgies and NCR Corp.'s point-of-sales solution. The chain will install Aloha's<br />
TableService software with NCR's RealPOS 62 workstations. The rollout to 42 company-operated stores is already underway<br />
and is expected to be completed by mid-2004. (Company Release 9/25/03)<br />
Personnel |<br />
Michael Shumsky, Chief Executive Officer<br />
Mimi Schiffer, Senior Vice President of Marketing<br />
Michael Kosloski, Vice President of Operations<br />
Steven Devine, Vice President of Operations<br />
Jeff Preston, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
345
K&W Cafeterias<br />
Headquarters<br />
P.O. Box 25048, Winston-Salem, North Carolina 27114-5048 USA<br />
Tel: (336) 760 0526 Fax: (336) 659 0032<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria Buffet<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 108,000 104,600 100,500<br />
Company-owned ($000) 108,000 104,600 100,500<br />
Franchised ($000) - - -<br />
U.S. Number of Units 34 34 33<br />
Company-owned 34 34 33<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,350 3,250 3,045<br />
Concept Positioning |<br />
K&W Cafeterias offer a wide selection of entrees, side dishes and desserts in a traditional cafeteria-style operation. The<br />
restaurants, which average 11,500 sq. ft. and seat an average of 270 persons, are either freestanding or found in shopping<br />
centers and malls. All of the freestanding units are located in close proximity to shopping centers. The company also caters to<br />
bus tours and other large dining groups due to its seating capacities.<br />
The company's exterior signs feature red letters. Its newest units have off-white stucco facades and a separate counter and<br />
entrance for takeout orders. Their decor include coordinating rugs, upholstery and window treatments in modern color<br />
schemes.<br />
Grady T. Allred, Sr., the founder of K&W Cafeterias, entered the restaurant business in the mid-1920's. Three brothers with the<br />
last name of Wilson and a brother-in-law of theirs with the name of Knight bought the coffee shop where he worked some<br />
years later. Allred later acquired a one-third interest in it and moved it to Winston-Salem, NC. Around 1940, Allred bought out<br />
his partners and became the sole owner.<br />
<strong>Menu</strong> Positioning |<br />
Wide variety of salads, entrees, vegetables, breads and desserts. Multiple fish, chicken, roast beef and ham entrees are<br />
always available. Approximately 15–20 vegetable items available daily. Also menus "Heart Healthy Choices" — entrees and<br />
vegetables low in cholesterol, fat and salt.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
346
Personnel |<br />
Gary Allred, Chief Executive Officer<br />
Linda Snow, Chief Financial Officer<br />
R. Leo Sasaki, Vice President of Finance<br />
Alan Rispoli, Chef<br />
Dee Rowland, Director of Purchasing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
347
KarmelKorn<br />
Headquarters<br />
7505 Metro Blvd., Minneapolis, Minnesota 55439 USA<br />
Tel: (952) 830 0200 Fax: (952) 830 0301<br />
www.karmelkorn.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 5,300 5,500 6,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 5,300 5,500 6,000<br />
U.S. Number of Units 25 26 31<br />
Company-owned - - -<br />
Franchised 25 26 31<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 175 175 -<br />
Concept Positioning |<br />
Featuring a variety of popcorn, including the caramel-coated confection that bears its name, Karmelkorn has been popped<br />
since 1926, Now operated under the umbrella of International Dairy Queen and owned by investment icon Warren Buffett,<br />
Karmelkorn has 30 locations owned by International Dairy Queen Inc., the Karmelkorn brand now extends to shopping malls<br />
around the country as part of a strategy to stay close to the customer.<br />
The company has developed its own method of dry popping yellow hybrid popcorn in a drum fire popper at 470-500 degrees to<br />
produce the desired explosion, expansion and durability for the procedures used in making "Karmelkorn" products. Each<br />
kernel is roasted in its original state. Bill O’Sullivan, a popcorn owner from Casper, Wyoming, developed the recipe in 1929.<br />
<strong>Menu</strong> Positioning |<br />
The franchised shops sell popcorn, the signature Karmelkorn and soft drinks as part of the brand extension.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
348
Kenny Rogers Roasters<br />
Headquarters<br />
1400 Old Country Rd. Suite 400, Westbury, New York 11590 USA<br />
Tel: (516) 338 8500 Fax: (516) 338 7220<br />
www.krroasters.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 15,000 24,700 23,000<br />
Company-owned ($000) - 1,700 -<br />
Franchised ($000) 15,000 23,000 23,000<br />
U.S. Number of Units 10 25 25<br />
Company-owned - 2 2<br />
Franchised 10 23 23<br />
International Sales ($000) 50,000 60,000 12,000<br />
International Units 80 80 10<br />
Average Sales/Unit ($000) 775 815 -<br />
Concept Positioning |<br />
Kenny Rogers Roasters is a chain of quick service restaurants that feature home-style family foods based on a menu centered<br />
on wood-fire rotisserie chicken. Open for lunch and dinner, 40% of sales are take-home, with 35–40% from its drive-through<br />
service windows.<br />
Units are largely freestanding and average 3,000–4,000 sq. ft. with seating for 125. Décor is built around a motif based on the<br />
popularity of country-western singer/entertainer Kenny Rogers. His name is used on the exterior signage and photographs,<br />
drawings and replicas of his records dominate the interior red and green décor. Although a new interior design and décor<br />
package features simulated weather-washed woodwork accented with earth tones. Custom wall murals are complimented by<br />
hanging memorabilia. Smaller freestanding and in-line prototypes are also in development.<br />
The distinctive flavoring of its chicken is the result of a two-step process. First suppliers marinate its chicken using a specially<br />
flavored proprietary marinade. Second, a unique blend of spice is applied just prior to cooking in its open flame wood-fire<br />
rotisserie in full view of customers.<br />
The company has recently begun to co-brand Kenny Rogers Roasters with Nathan’s by introducing Nathan’s famous all-beef<br />
frankfurters, French fries and hamburgers to the core menu offerings. The program is designed to add strong lunchtime<br />
offerings to the existing predominant dinner-based menu.<br />
The chain was founded in 1991 by John Y. Brown, Jr., the person credited with building KFC into one of the world’s largest<br />
and most successful fast-food chains. In mid-1996, its Malaysian investor, Berjaya Group Ltd., purchased 1.8 million shares of<br />
its stock, giving the group a 55% majority interest. In early 1998, the chain filed Chapter 11 bankruptcy. In April 1999, Nathan’s<br />
Famous completed its acquisition of the company from bankruptcy for $1.25 million in cash plus related expenses.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
349
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: citrus-based marinated wood-fired rotisserie chicken sold in various combinations from individual portions to<br />
family platters. Other entrees offered include Honey Bourbon BBQ ribs and rotisserie turkey. Also available are wide varieties<br />
of freshly prepared side dishes, corn muffins, soups, salads and sandwiches. Sides include mashed potatoes and gravy,<br />
garden pasta salad, baked bean, rice and beans, steamed fresh vegetables, cinnamon apples, tomato, cucumber and onion<br />
salad, potato salad and sour cream dill pasta salad; each sold in three sizes. <strong>Menu</strong> Prices: $1.55–$10.99. Check Averages:<br />
$7.50–$14.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
350
KFC<br />
Headquarters<br />
1441 Gardiner Lane, Louisville, Kentucky 40213 USA<br />
Tel: (502) 874 8300 Fax: (502) 874 8036<br />
www.kfc.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 4,860,000 4,700,000 4,400,000<br />
Company-owned ($000) 1,380,000 1,200,000 1,200,000<br />
Franchised ($000) 3,480,000 3,500,000 3,200,000<br />
U.S. Number of Units 5,472 5,399 5,364<br />
Company-owned 1,284 1,274 1,339<br />
Franchised 4,188 4,125 4,025<br />
International Sales ($000) 5,400,000 5,000,000 5,000,000<br />
International Units 6,890 6,416 5,974<br />
Average Sales/Unit ($000) 890 865 896<br />
Concept Positioning |<br />
KFC is the largest chicken chain in the world. Its units offer walk-in, sit-down, carryout, and, in many locations, drive-through<br />
service. While the vast majority of the system is freestanding restaurants, KFC has also been developing many nontraditional<br />
locations and kiosk sites. Home delivery is also moving beyond a test stage.<br />
As part of its emphasis on keeping the concept vital, it is remodeling stores, opening kitchens to customer view, increasing<br />
seating, and, where possible, adding a drive-through window. New and remodeled stores feature an earth tone color scheme<br />
and provide seating for at least 24 persons. It is also concentrating on menu development with the introduction of many new,<br />
non-fried and snack items as well as all-you-can-eat buffets.<br />
Co-branding with its sister chain, Taco Bell, has been another important program. Both sales and returns have been boosted<br />
in those units that have both brands. There are also a few tri-branded units that feature Taco Bell, Pizza Hut and KFC.<br />
Colonel Harland Sanders founded KFC in 1930. In 1964, a group of investors headed by John Y. Brown bought it and is<br />
credited with growing the chain to its segment dominance. PepsiCo, Inc. acquired the company in the mid-1980's. In early<br />
1991, in an effort to reposition itself as more healthy, changed its name from Kentucky Fried Chicken to the use of the initials<br />
KFC as its official identifier. In early 1997, PepsiCo announced its intention of spinning off its restaurant holdings into a<br />
separate publicly traded company, Tricon Global, later renamed YUM! Brands, Inc.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: fried chicken—original recipe and extra crispy—served with coleslaw, mashed potatoes and corn-on-the-cob.<br />
Extra-crispy: 33% of sales volume. Also menus non-fried Tender Roast chicken-on-the-bone, Colonel’s Crispy Strips,<br />
Kentucky fries (skin-on wedges), chicken sandwiches, chicken nuggets, Hot Wings, biscuits and Chunky Chicken Pot Pie<br />
(available seasonally). Check Averages: $3.65–$10.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
351
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Crescent City Beignets inked a deal with Jackson Square Partners LLC for outlets in Louisville; Indianapolis; and Nashville,<br />
TN. In addition to powder sugar-dusted beignets, the concept also offers chicory-laced café au lait; po-boy, muffuletta and<br />
other sandwiches; gumbos; and salads. Checks run $6–$8. Jackson Square’s principals include Jeff Moody, a former KFC<br />
president; Bruce Besten, who previously was an 18-unit Papa John’s franchisee; and Bernie Mabrey, a former brand manager<br />
for PPG Industries. Crescent City Beignets’ founder, president and chief executive Wayne Bunch opened the first unit in 1997<br />
in Houston. A typical restaurant is about 2,000 sq.ft. and seats 50–60. Of the chain’s 13 units, eight have opened in the last six<br />
months. Cafes that have been open at least one year have sales of about $600,000. The company said it has commitments for<br />
76 more franchised locations. (Nation’s Restaurant News)<br />
Promotion Plans |<br />
KFC launched a series of television spots to promote its new Honey Barbecue Boneless Wings. They are priced at $2.99 for<br />
seven pieces and $7.99 for 20 pieces for a limited time. (Nation’s Restaurant News)<br />
KFC awarded its estimated $200 million ad account to Foote Cone & Belding of Chicago. FCB’s first ad work is expected to<br />
break during the fourth quarter. (NRN Daily NewsFax 9/18/03)<br />
KFC plans to focus future advertising campaigns on the freshness of the chain's chicken. A timetable for the promotion was<br />
not disclosed. (Restaurant Business Daily News 12/12/03)<br />
<strong>Menu</strong> Development |<br />
KFC is offering an extra-crispy Beijing duck-style offering at outlets in Beijing, China. Its Chicken Roll of Old Beijing is based<br />
on the popular Chinese dish of Beijing roast duck rolled in thin pancakes with scallions, cucumber slivers and hoisin sauce.<br />
The KFC version features fried chicken instead of duck. (NRN Daily NewsFax)<br />
Wendy’s plans to launch chicken strips later this year. According to comments from CEO Jack Schuessler in a conference call,<br />
the item will be added in the second half of 2003. Boneless chicken strips are already popular items at Popeyes, Domino’s,<br />
Hardee’s, KFC and Papa John’s. (Restaurant Business Daily News, 6/9/03)<br />
KFC launched a new Oven Roasted Breast Filet meal as a permanent offering in the Greater Philadelphia market. The nonfried<br />
item is a lightly seasoned chicken breast that is slow-roasted and served with rice and a chilled salad of marinated<br />
vegetables. Priced at $5, it is also available in a KFC Twister sandwich with filet slices, Dijon-mayonnaise sauce, shredded<br />
lettuce and tomato slices rolled in a warm tortilla. (NRN Daily NewsFax, 8/7/03)<br />
KFC plans to roll out oven-roasted chicken strips as a healthful alternative. The strips are served with chilled marinated<br />
vegetables. (NRN Daily NewsFax 10/29/03)<br />
KFC broke new television spots promoting fried chicken as part of a healthy diet and is distributing “Keep It Balanced”<br />
brochures encouraging consumers to eat in moderation. It has also reported that its Original Recipe Chicken Breast has fewer<br />
calories and less than half the fat of the Burger King Whopper. The chain also plans to roll out oven-roasted chicken strips<br />
served with chilled, marinated vegetables as a healthful alternative. (NRN Daily News Fax 10/29/03)<br />
Franchise Activity |<br />
KFC franchisee Dennis Schoenhofer agreed to buy 10 bankrupted KFC stores for $2 million. The units are located in the<br />
Tulsa, OK, area. (Restaurant Business Daily News 12/30/03)<br />
International Activities |<br />
KFC reportedly is offering both regular and extra-crispy Peking-duck-style items at branches in Beijing. “Chicken Roll of Old<br />
Beijing” has some similarities to the popular Chinese dish featuring Beijing-style roast duck rolled in thin pancakes with<br />
scallions, cucumber slivers and hoisin sauce. The version offered by KFC features fried chicken. There are about 700 KFCs in<br />
China. (NRN 2/24/03 p61)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
352
<strong>RISE</strong> COMPANY PROFILE<br />
Taco Bell opened its first outlet in China in Shanghai. It features tableservice rather than the usual counter format. Parent<br />
Yum! Brands said it will monitor the unit’s performance to determine its expansion plans for the chain. Taco Bell’s sister chains<br />
KFC and Pizza Hut already have a total of about 8,100 outlets in China. (NRN 6/2/03 p56; FIR 5/26/03 p8)<br />
Priszm Brandz said that its 250 Pizza Hut outlets across Canada would buy only 100% Canadian beef to help support the<br />
country’s ailing beef industry. Its Pizza Hut restaurants buy approximately 3 million pounds of beef products annually. Priszm<br />
franchises more than 760 KFC, Taco Bell, Long John Silver’s and Pizza Hut outlets. In making the 100% Canadian beef<br />
pledge, at least temporarily, it is following the lead of the Canadian arms of McDonald’s and Dairy Queen. (NRN 8/25/03 p56)<br />
Sizzler USA expanded its deal with an existing franchisee in Puerto Rico. The deal calls for Multisystems Restaurants Inc. to<br />
add five new Sizzlers in Puerto Rico over the next five years. Sizzler USA, with 317 units, is a division of Worldwide<br />
Restaurant Concepts’ system, which also includes 111 KFCs, primarily in Queensland, Australia, and 21 Pat & Oscar’s.<br />
(NDNF 9/26/03)<br />
Technology |<br />
KFC named ParTech Inc. its primary point-of-sale hardware and service provider. New Harford, NY-based ParTech said it<br />
would supply KFC with its POS4XP. (Nation's Restaurant News 10/27/03 p68)<br />
Personnel |<br />
Gregg Dedrick, President<br />
Kathy Cosi, Chief Financial Officer<br />
Tony Mastropaolo, Chief Operating Officer<br />
Scott Bergren, Chief Marketing Officer<br />
KFC President Cheryl Bachelder resigned as president. She will be replaced by Gregg Dedrich, president of KFC’s United<br />
States division. (Restaurantbiz.com 9/16/03)<br />
News & Other |<br />
Fast-food chains continue to retool menus to address growing consumer interest in healthier choices. KFC is reportedly testing<br />
roasted, boneless chicken and is said to be testing an unspecified number of products that were described as “better-for-you,”<br />
by David Novak, chairman and chief executive of parent YUM! Brands. A company spokesman also notes that health<br />
conscious-consumers can order a Tender Roast chicken sandwich without the sauce, corn without butter and barbecue beans<br />
for a meal that has less than 10 grams of fat. (Nation’s Restaurant News)<br />
Yum! Brands reported sales in 2002 at U.S. outlets rose 9% to $14.6 billion on a 1% blended same-store sales increase as<br />
annual domestic revenues increased 11% to $5.4 billion. International openings for 2002 hit a record 1,051 units and<br />
international operating profit for the year grew 17% to $121 million. Yum! will give Pizza Hut a 4% boost in its marketing<br />
budget for 2003 to $300 million and its KFC and Taco Bell brands will receive 3% increases in their annual marketing budgets,<br />
to $200 million each. (NRN 2/24/03 p4)<br />
KFC will adopt guidelines for suppliers to follow with regard to the humane treatment of poultry, covering breeding, hatching<br />
and raising of poultry at the farm level. A campaign against KFC was launched earlier this year by the group People for the<br />
Ethical Treatment of Animals (PETA), which has pressured fast-food chains to adopt animal welfare standards. PETA asked<br />
KFC to require its suppliers not to employ practices such as stunning and slitting the throats of chickens and instead<br />
suggested using gas to kill them. KFC has asked the USDA and Department of Labor to consider the feasibility of using such a<br />
method. PETA said it will continue its campaign against KFC because its guidelines do not include slaughter-related policies.<br />
KFC’s new poultry standards were developed by animal welfare experts at the direction of the National Council of Chain<br />
Restaurants and the Food Marketing Institute. (NDNF 5/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
353
<strong>RISE</strong> COMPANY PROFILE<br />
The Riese Organization, a multi-unit operator based in New York City, has switched to Pepsi-Cola North America as its<br />
exclusive soft-drink supplier at its more than 100 New York-area outlets. It signed a multi-year contract for Pepsi brands in<br />
fountain cups, bottles and cans. Among the concepts operated by Riese are T.G.I. Friday’s, Pizza Hut, Dunkin’ Donuts, KFC,<br />
Houlihan’s and Tad’s Steaks. Riese will convert from Coca-Cola products over a period of a few months. (NRN 2/24/03 p48;<br />
WRC 2/24/03)<br />
KFC is testing an oven-baked boneless and skinless chicken breast in Syracuse, NY, that is served on a bed of rice with a<br />
cold vegetable salad and a dinner roll. In other news, the chicken chain is retooling its advertising and eliminating Jason<br />
Alexander’s role as its spokesman. (NRN 7/7/03 p4)<br />
KFC is being sued by People for the Ethical Treatment of Animals (PETA) for allegedly making misleading statements about<br />
its poultry-welfare guidelines. The complaint seeks an injunction “to prevent ongoing deceptive advertising practices” in Web<br />
postings and in communications via a consumer phone line. The Louisville, KY-based chain, owned by Yum! Brands Inc., said<br />
its guidelines are “truthful and accurate.” Its policy prohibits suppliers from using “growth-promoting substances” and from “debeaking<br />
any poultry.” PETA’s lawsuit claims that KFC’s suppliers “routinely feed chickens massive amounts of antibiotics for<br />
the dual purpose of keeping them alive in gross unsanitary and overcrowded conditions and to stimulate the animals into<br />
growing larger and more rapidly than they otherwise would.” It also accuses the company of purchasing chickens that are “debeaked<br />
in massive numbers.” Yum Brands chairman and chief executive David Novak was splashed with a red substance by a<br />
PETA protestor during a visit to a KFC/A&W restaurant in Hanover, Germany. Novak was not injured. (NDNF 7/8/03; NRN<br />
6/30/03 p4 & 7/7/03 p4)<br />
Yum! Brands Inc. reported domestic same-store sales for the four weeks ended September 6 at company-owned restaurants<br />
were flat compared to year-ago results. Same-store sales rose 2% at Taco Bell and 4% at Pizza Hut but fell 6% at KFC.<br />
Foreign systemwide sales increased 7% on a local-currency basis for the period. (NRN Daily NewsFax 09/12/03)<br />
KFC is no longer the target of a PETA lawsuit but the animal rights group will continue to challenge some of the chain’s<br />
practices. People for the Ethical Treatment of Animals dropped its lawsuit against the company and its parent Yum! Brands but<br />
the group plans to continue its anti-KFC campaign with a “world week of action” September 28 through October 4. PETA said<br />
that week will feature demonstrations at KFC outlets in all 50 states and in dozens of other countries. PETA goals include<br />
pressuring KFC to require suppliers to replace electric stunning and throat slitting with gas slaughter methods. KFC adopted<br />
animal welfare guidelines in May but PETA said they were inadequate. PETA said it dropped the lawsuit because KFC had<br />
removed certain statements on its Web site related to poultry rearing as well as a claim that the chain does not allow suppliers<br />
to use growth-promoting substances. (NDNF 9/3/03)<br />
Crescent City Beignets inked a deal with Jackson Square Partners LLC for outlets in Louisville; Indianapolis; and Nashville,<br />
TN. In addition to powder sugar-dusted beignets, the concept also offers chicory-laced café au lait; po-boy, muffuletta and<br />
other sandwiches; gumbos; and salads. Checks run $6–$8. Jackson Square’s principals include Jeff Moody, a former KFC<br />
president; Bruce Besten, who previously was an 18-unit Papa John’s franchisee; and Bernie Mabrey, a former brand manager<br />
for PPG Industries. Crescent City Beignets’ founder, president and chief executive Wayne Bunch opened the first unit in 1997<br />
in Houston. Of the chain’s 13 units, eight have opened in the last six months. The company said it has commitments for 76<br />
more franchised locations. (NRN 8/25/03 p3 & 9/1/03 p4)<br />
Yum! Brands for the four weeks ended September 6, reported domestic same-store sales increased 2% at Taco Bell and 4%<br />
at Pizza Hut but decreased 6% at KFC. International system sales were 7% higher during the period. (Nation’s Restaurant<br />
News 9/22/03 p18)<br />
KFC reported same-store sales decreased 1% for the four-week period ended October 4. (NRN Daily NewsFax 10/8/03)<br />
Yum! Brands announced that Gregg Dedrick was named president of KFC, replacing Cheryl Bachelder. He most recently<br />
served as executive vice president of human resources for Yum! and previously was KFC’s chief people officer. The following<br />
day, KFC awarded its estimated $200 million advertising account to Foote Cone & Belding of Chicago, which is part of<br />
Interpublic Group of Cos. The agency’s San Francisco office handles advertising for Yum! Brands’ Taco Bell. (NRN 9/22/03 p2<br />
& 9/29/03 p14; RB 10/1/03 p12)<br />
KFC broke new television spots promoting fried chicken as part of a healthy diet and is distributing “Keep It Balanced”<br />
brochures encouraging consumers to eat in moderation. It has also reported that its Original Recipe Chicken Breast has fewer<br />
calories and less than half the fat of the Burger King Whopper. The chain also plans to roll out oven-roasted chicken strips<br />
served with chilled, marinated vegetables as a healthful alternative. (NDNF 10/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
354
<strong>RISE</strong> COMPANY PROFILE<br />
Yum! Brands is accelerating its multi-brand strategy. The company is encouraging existing stores to add a second brand to<br />
their locations. The costs associated with such a move range from $150,000–$300,000, though the addition usually generates<br />
$200,000–$300,000 annually in sales. Yum!, which owns Taco Bell, KFC, Pizza Hut and A&W, also noted that multi-branded<br />
sites often have a more “contemporary” feel, with high ceilings, curved design elements and a variety of seating options from<br />
high tops to booths to tables. (NRN 10/20/03 p74)<br />
KFC Corp. is discontinuing TV spots portraying its fried chicken as a diet alternative to hamburgers such as Burger King’s<br />
Whopper. Although the move follows a deceptive-advertising complaint to the Federal Trade Commission, KFC said the ads<br />
had run their normal course after airing for nearly four weeks. The campaign was the first developed by the chain’s new ad<br />
agency, Foote, Cone & Belding, and the first under new KFC president Gregg Dedrick and new marketing chief Scott Bergren.<br />
In related news, People for the Ethical Treatment of Animals said that comedian and civil-rights advocate Dick Gregory and<br />
Cornel West, an author and Princeton University professor, are urging KFC to require its chicken suppliers to improve their<br />
animal-handling procedures. The two reportedly wrote letters to KFC chairman and chief executive David Novak asking that<br />
KFC approve PETA’s basic list of guidelines, which includes killing with gas rather than electric stunning or throat-slitting and<br />
the mechanical collection of birds rather than hand-grabbing, which can break wings. KFC responded that it buys quality<br />
chicken from trusted brands such as Perdue, Tyson and Pilgrim’s Pride. (NRN 11/7/03 p80, 11/24/03 p80 & 12/1/03 p3)<br />
Sodexho has completed the first year of its eight-year contract with the U.S. Marine Corps. Worth $850 million, the venture<br />
covers both West Coast and East Coast contracts. In addition, Sodexho recently signed a separate contract to manage<br />
several retail foodservice outlets at the Marine Corps Air Station in Miramar, CA. They include Starbucks, Freshëns, Quiznos,<br />
Taco Bell, KFC, a restaurant at the base golf course and operations in the Enlisted Club and Officers Club. Sodexho uses<br />
Defense Department purchasing specifications and follows recipes from the Armed Forces Recipe System. At selected West<br />
Coast mess halls, Sodexho is running a test of a 21-day-cycle menu rather than the military’s standard 28-day cycle. The test<br />
also allows Sodexho to introduce a few menu items of its own. The Marines are anxious to improve mess hall participation.<br />
Single Marines living on base receive a meal card but on any given day, only about 55% take advantage of their free meals.<br />
The Marine Corps would like to find out why participation is so low and improve it. (NRN 11/24/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
355
Kimpton Individual Restaurants<br />
Headquarters<br />
222 Kearny St. Suite 200, San Francisco, California 94108 USA<br />
Tel: (415) 397 5572 Fax: (415) 296 8031<br />
www.kimptongroup.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 120,000 110,000 114,425<br />
Company-owned ($000) 120,000 110,000 114,425<br />
Franchised ($000) - - -<br />
U.S. Number of Units 34 31 30<br />
Company-owned 34 31 30<br />
Franchised - - -<br />
International Sales ($000) 2,000 1,800 175<br />
International Units 1 1 1<br />
Average Sales/Unit ($000) 3,500 3,550 3,814<br />
Concept Positioning |<br />
Known across the country for pairing independent "destination" restaurants with hotels, the Kimpton Group manages and<br />
operates over 32 restaurant concepts. Although nearly half of its concepts are Italian influenced, each has been developed<br />
individually and is independently run. Current concepts include: Grand Café, Library Bistro, South Water Kitchen, Red Star<br />
Tavern and Roast House, Postrio, Kuleto's Trattoria, Kuleto's Italian Restaurant, Cafe Pescatore, Pazzo Ristorante, Puccini<br />
and Pinetti, Tulio, Firefly, Poste, Cobalt, Fifth Floor and Masa’s.<br />
Current expansion projects include the opening of Bambara in Cambridge in March 2003 and conversion of the Haslitt Building<br />
in San Francisco into a hotel and restaurant complex (due to open in 2003).<br />
The Kimpton Hotel and Restaurant Group began in 1981 with the opening of the Clarion Bedford Hotel at Union Square in San<br />
Francisco, under the direction of Bill Kimpton.<br />
<strong>Menu</strong> Positioning |<br />
Ranges from classic Italian & California-style cuisine to French, Mediterranean & Asian Entrees may include Pappardelle with<br />
sweet pepper ragu & ricotta salta at Tulio; roast breast of pheasant with morels & pears at Masa's or wild mushroom pizza with<br />
asparagus, roasted onion & and white cheddar at Red Star<br />
Personnel |<br />
Thomas LaTour, Chairman<br />
Kirke Wrench, Chief Financial Officer<br />
Niki Leondakis, Chief Operating Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
356
<strong>RISE</strong> COMPANY PROFILE<br />
Kimpton Hotels & Restaurants named Kelley Jones vice president of restaurant operations. Previously, Jones served as<br />
director of development for China Grill Management. (NRN Daily NewsFax 10/7/03)<br />
News & Other |<br />
Kimpton Hotel & Restaurant Group opened the Argonaut Hotel and the adjacent Blue Mermaid Chowder House & Bar in<br />
August on San Francisco’s waterfront. The 252-room hotel is located in the historic Haslett Warehouse at Fisherman’s Wharf.<br />
The company also announced its plans to refurbish and expand its Doral Park Avenue Hotel in San Francisco. As part of the<br />
renovations, a restaurant and bar are slated for the property, but such plans are still tentative. The company expects the cost<br />
for the redevelopment to be between $18 million and $19 million. Renovation is expected to start in November and be<br />
completed by July 2004. (FA 10/03 p24; HB 10/7/03 p51)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
357
Koo Koo Roo<br />
Headquarters<br />
2701 Alton Parkway, Irvine, California 92606 USA<br />
Tel: (949) 863 8500 Fax: (949) 863 8509<br />
www.kookooroo.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 36,600 46,781 54,941<br />
Company-owned ($000) 36,600 46,781 54,941<br />
Franchised ($000) - - -<br />
U.S. Number of Units 29 36 43<br />
Company-owned 29 36 43<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,088 1,184 1,277<br />
Concept Positioning |<br />
A limited-service, home-meal replacement concept that menus its own proprietary skinless, flame-broiled chicken, Koo Koo<br />
Roo has some 50% of its business in carryout, delivery and catering sales.<br />
Units range from 2,700–3,100 sq. ft., with seating for 75–85 and can be freestanding or in-line in strip shopping centers. Each<br />
has a clean, contemporary look through the use of stainless steel and primary reds, blues and whites.<br />
The first Koo Koo Roo opened in 1989 in Los Angeles. In early 1997, it agreed to buy 14 Hamburger Hamlets restaurants in<br />
California and Washington, DC, for $11.45 million in cash and stock. The deal was completed in May 1997. In 1998, the<br />
company completed a merger with Family Restaurants, Inc., thereby creating a new merged entity called Koo Koo Roo<br />
Enterprises Inc. (now Prandium, Inc.)<br />
<strong>Menu</strong> Positioning |<br />
Signature item: flame-broiled chicken. Also hand-carved turkey, rotisserie chicken, made-to-order salads (a vegetable stand,<br />
reminiscent of a roadside farm fresh produce stand, is set up as a separate preparation station), sandwiches on fresh-baked<br />
rolls, soups and 24 different side dishes such as confetti rice, tangy tomato salad, baby carrots, butternut squash, baked yams<br />
and fresh cut fruit. Bowls entrees include Southwestern, Chargrilled and Teriyaki. Has 4 different $5.99 combo meals that<br />
include 2 sides and beverage. Debuted stuffed potatoes, barbecue chicken and Apple Crumb Dessert in 2000. <strong>Menu</strong> Prices:<br />
$3.49–$7.50; family value packs, $14.00–$25.99; whole turkeys, $79.95. Check Averages: $9.82.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
358
Personnel |<br />
Brice King, President<br />
Scott McCullough, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Prandium received a $6.4 million bid to purchase the company, according to a securities filing. The offer for the parent of Chi-<br />
Chi’s, Koo Koo Roo and Hamburger Hamlet comes from Prandium Acquisition Company LLC and the Los Angeles-based<br />
firms Triyar Cos. LLC and 180 Degree Group LLC, which teamed up with Goense Boundes & Partners of Lake Forest, IL, to<br />
submit a non-binding letter of intent to purchase the 178-unit restaurant operator and franchisor. The company’s spokesman<br />
could not be reached for comment. Not included in the deal is 14-unit Hamburger Hamlet, which Latin Intellectual Properties of<br />
Los Angeles has been seeking to buy since May 2002. Its $15 million bid for the chain was rejected last August. (NDNF<br />
5/30/03)<br />
Koo Koo Roo entered an agreement to sell its assets to Fuddruckers Inc. for about $4 million. Koo Koo Roo recently filed for<br />
Chapter 11 bankruptcy. (NRN Daily NewsFax 10/13/03)<br />
Prandium said that its Koo Koo Roo chain agreed to sell its assets to Fuddruckers for about $4 million, according to an SEC<br />
filing. Koo Koo Roo and Chi-Chi’s, both subsidiaries of Prandium, had just filed for Chapter 11 bankruptcy protection. In related<br />
news, Prandium’s Hamlet Group subsidiary, operator of 14-unit Hamburger Hamlet, is negotiating to sell its assets to<br />
Fuddruckers. Prandium said that it is considering placing Hamburger Hamlet under the Chapter 11 shield as well, noting that<br />
the hamburger chain is a source of positive cash flow for the company. The judge of the Chapter 11 proceedings of Chi-Chi’s<br />
and Koo Koo Roo reportedly said he would approve $2.4 million in interim debtor-in-possession financing to the chains to fund<br />
operations until November 5. In addition, Chi-Chi’s entered into a non-binding letter of intent with CC Acquisition Holding Co.<br />
LLC, a newly formed entity whose majority owner is Worldwide Entertainment Inc., a Delaware corporation. (NDNF 10/10/03 &<br />
10/13/03)<br />
Prandium is selling its Chi-Chi’s, Koo Koo Roo and Hamburger Hamlet brands. Prandium, which filed for Chapter 11 protection<br />
on October 8, already has potential buyers for the three brands. According to Prandium CEO Hugh Hilton, Chi-Chi’s has<br />
entered into a nonbinding letter of intent with CC Acquistion Holding Co. LLC, whose majority owner is Worldwide<br />
Entertainment Inc. Koo Koo Roo and Fuddruckers have entered into a definitive asset purchase agreement, and The Hamlet<br />
Group is also reported to be in negotiations with Fuddruckers. (NRN 10/20/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
359
Krispy Kreme<br />
Headquarters<br />
370 Knollwood St., Winston-Salem, North Carolina 27103 USA<br />
Tel: (336) 725 2981 Fax: (336) 773 3791<br />
Ownership: Public<br />
Segment: Limited Service Donut<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 621,665 448,129 320,000<br />
Company-owned ($000) 266,209 213,677 150,000<br />
Franchised ($000) 355,456 234,452 170,000<br />
U.S. Number of Units 218 174 174<br />
Company-owned 75 63 63<br />
Franchised 143 111 111<br />
International Sales ($000) 5,000 - -<br />
International Units 3 - -<br />
Average Sales/Unit ($000) 2,400 2,200 2,380<br />
Concept Positioning |<br />
Krispy Kreme Doughnuts is a chain of freestanding doughnut shops. With a design that dates back to the shops typical of the<br />
1950's, Krispy Kreme units have aqua and white interiors and feature an exhibition area for production that includes a neon<br />
sign that lights when doughnuts are hot and fresh from the production line. Seating is largely at counters but a few tables are<br />
also available in the 4,600 sq. ft. units. Most stores operate on a 24-hour schedule, while others are open form 5:30 a.m. to<br />
1:00 a.m.<br />
Doughnuts are made on-premise, with its equipment package designed to handle 4,000–10,000 dozen doughnuts each day.<br />
In addition to on-premise sales, the majority of its units also have a direct store delivery system to supply retail customers.<br />
Supermarket accounts include Kroger, Food Lion, Giant Food and Acme Markets as well as over 1,500 C-stores.<br />
A new concept store was introduced in 2002, the "doughnut and coffee shop." The concept, which uses Krispy Kreme's new<br />
Hot Doughnut Machine, offers quicker production and a more extensive line of coffees. Currently there are three doughnut and<br />
coffee shops in operation, all company owned. The new Hot Doughnut Machine requires less space than previous production<br />
models and re-heats unglazed doughnuts, prepared by the traditional factory stores, for glazing.<br />
Its current expansion thrust is through a group of area development agreements with several major restaurant companies<br />
including Compass Group PLC’s Restaurant Associates, New York, foodservice management arm, and ICON LLC, a Chicagobased<br />
group formed by Lettuce Entertain You Enterprises executives. Other agreements include rights for Honolulu; Portland,<br />
OR; Seattle and Vancouver, BC. In March 2003, Krispy Kreme opened its first unit outside of North America in Australia. By<br />
2008, the company plans to open approximately 30 more stores internationally.<br />
Krispy Kreme dates back more than 65 years. In the early '80's its parent Beatrice Foods Corp., Chicago, sold it to private<br />
investors including Joseph A. McAleer, Sr. In late 1999, the company issued its first IPO on NASDAQ, but moved to the New<br />
York Stock Exchange in mid-2001. In February 2001, it acquired Chicago-based Digital Java, Inc., a coffee company, to help<br />
facilitate a rollout of its own branded coffee. Krispy Kreme also acquired Rochester, NY-based Montana Mills Bread Co., a<br />
bakery concept, in early 2003.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
360
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: Hot Original Glazed doughnuts. Also offers more than 20 other varieties of yeast-raised, glazed doughnuts,<br />
branded coffee and soft drinks.<br />
<strong>Menu</strong> Development |<br />
Krispy Kreme is offering icy blended beverages in select locations. Options include Raspberry, Latte, Double Chocolate and<br />
an Original Kreme that is said to taste like the chain’s signature glazed doughnut. (Nation’s Restaurant News, 7/21/03, p39)<br />
Franchise Activity |<br />
Krispy Krème revealed its franchisee in Mexico is slated to develop 20 stores over the next few years. (NRN Daily NewsFax<br />
11/24/03)<br />
International Activities |<br />
Krispy Kreme Doughnuts planned to open its first store in Quebec in late April. The chain’s first Canadian unit outside of<br />
Ontario and its fifth in Canada, the unit will be located in Marche Central in Montreal. It is being opened by KREMEKO Inc., the<br />
exclusive area developer for Krispy Kreme in Ontario, Quebec and the four Atlantic Canada provinces. (MBN 2/11/03 p14)<br />
Krispy Kreme Doughnuts will open its first store outside North American in Australia in June. Over the next five years, Krispy<br />
Kreme Australia PTY reportedly plans to open 30 stores. (FIR 3/10/03 p8)<br />
Krispy Kreme Doughnuts signed a joint-venture deal for Mexico with Grupo AXO of Mexico for 20 stores over the next six<br />
years. They will form Krispy Kreme Mexico, S. de R.L. de C.V., in which Krispy Kreme will hold a 30% equity interest. This<br />
marks Krispy Kreme’s fourth international deal. In related news, Krispy Kreme has increased the development territory of<br />
KremeKo Inc., its franchisee in eastern Canada and its first international franchisee. The new development agreement<br />
includes the Canadian provinces of Alberta, Manitoba and Saskatchewan and calls for eight more stores in the region over the<br />
next five years. The doughnut company said it would retain a 39.3% interest in the joint venture. (MBN 5/13/03 p11 & 5/20/03<br />
p9; FIR 5/19/03 p6; NRN 5/26/03 p96)<br />
Krispy Kreme opened its first unit outside North America in a suburb of Sydney, Australia. By year’s end, three or four shops<br />
are expected to be in operation. Plans call for a total of 10 stores in Sydney and a total of 30 across Australia. (FIR 6/23/03 p8)<br />
Krispy Kreme Doughnuts will open its first European store in London this October in the landmark department store Harrods of<br />
Knightsbridge. The in-store unit would be the brand’s second branch outside North America and the first of 25 planned units to<br />
be opened over a five-year period in the United Kingdom and the Republic of Ireland. (NDNF 8/6/03)<br />
Krispy Kreme Doughnuts Inc. plans to open 25 units in the United Kingdom and the Republic of Ireland over the next five<br />
years. The first store will be opened in London department store Harrods of Knightsbridge next month. The in-store outlet is<br />
the chain's second branch outside North America. (Nation’s Restaurant News 9/15/03 p32)<br />
Krispy Kreme opened its first European outlet in London. The unit is located in the city’s Harrods of Knightbridge department<br />
store. Additionally, company CEO Scott Livengood announced that Mexico is the next likely market for international expansion,<br />
though Japan and Korea are also priorities for the donut chain. (FIR 10/13/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
361
Personnel |<br />
Michael Phalen, Chief Financial Officer<br />
Scott LIvengood, Chairman<br />
John Tate, Chief Operating Officer<br />
Randy Casstevens, Chief Financial Officer<br />
Stanley Parker, Vice President of Marketing<br />
Sherry Polonsky, Vice President of Finance<br />
Tim Honeycut, Vice President of Purchasing<br />
Mike Cecil, Vice President of Marketing<br />
Ron Rupocianski, Chef<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Krispy Kreme Doughnuts Inc. director Erskine Bowles resigned from the board. (Nation’s Restaurant News 11/10/03 p128)<br />
Krispy Kreme appointed Michael Phalen chief financial officer. Previously, Phalen was executive director of corporate finance<br />
at CIBC World Markets. Phalen was also part of the team that managed the chain’s initial price offering. (Restaurant Business<br />
Daily News 12/23/03)<br />
News & Other |<br />
Montana Mills Bread Co. will be acquired by Krispy Kreme Doughnuts for an estimated $40.4 million in stock. Montana Mills,<br />
which went public less than a year ago, operates some 30 bread stores and cafes in the Northeast and Midwest. The 265store<br />
doughnut chain will issue about 1.2 million shares of common stock for the acquisition, which it expects to dilute earnings<br />
by about 3¢ per share in the first full year. The concept was launched in 1996. In related news, Montana Mills will open the first<br />
of as many as seven franchised stores in the Washington, DC, area in 2004. The units will be the first Montana Mills outlets<br />
not owned by the founding company. The chain currently is selling franchises in 22 states. (NRN Daily NewsFax; Food<br />
Institute Report; Milling & Baking News)<br />
Krispy Kreme’s new brand, Montana Mills Bread Co., is closing nine underpeforming locations, including all three of its Ohio<br />
stores. The closures are due to either poor performance or locations in areas where the brand has weak market penetration.<br />
That leaves Montana Mills with 22 locations in upstate New York, Connecticut and Pennsylvania. Krispy Kreme acquired the<br />
chain in January. (RB 4/15/03 p16)<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
362
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
St. Joseph’s Regional Medical Center in Paterson, NJ, added an Au Bon Pain mobile concession cart in January. Every<br />
afternoon, the cart is brought to 10–12 of the hospital’s units, along with the operating room radiology waiting rooms and other<br />
hospital areas. It is accessible to all patients who are not on restricted diets—about 225 daily. It sells Au Bon Pain pastries,<br />
cookies, pre-packaged sandwiches and salads, Krispy Kreme donuts and beverages. The cart currently is a cash operation<br />
but the hospital has a card swipe system in the works that would allow patients or family to purchase declining balance cards<br />
to be used instead of cash. (FSD 5/15/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
363
<strong>RISE</strong> COMPANY PROFILE<br />
Krispy Kreme Doughnuts plans a national rollout this year of frozen and espresso-based coffees. The new drinks currently are<br />
available at about 43 stores. The frozen program will be rolled out over the summer and the espresso line over the fall. The<br />
292-unit chain, with stores in 38 states, Canada and Australia, currently does about 10% of its volume in beverages. Its goal is<br />
to boost that to around 20% within five years of completing the rollout. Separately, Krispy Kreme reported that for the 12-week<br />
period ending April 20, its share of the packaged doughnut market was 27.4%. This is a 6.9% increase over a year ago. A<br />
growing number of c-stores, supermarkets and other outlets offer branded Krispy Kreme doughnuts and the company noted<br />
that its share of the packaged donut market has quadrupled in just a little more than two years In other news, Krispy Kreme<br />
will acquire rights to the Shreveport, LA, and Dallas markets. In Dallas, it also is acquiring five stores and a single commissary<br />
from a franchisee. Terms were not disclosed. Shreveport currently has no Krispy Kreme outlets. (NRN 6/9/03 p4; MBN 6/3/03<br />
p1)<br />
Krispy Kreme’s sales in 2002 were $492 million and it earned $33 million (including a one-time charge of $9 million).<br />
Systemwide revenues, which include franchisee sales, were $779 million and are expected to surpass $1 billion this year.<br />
Same-store sales are growing by more than 11% annually and its operating margin of nearly 16% continues to grow. The<br />
company makes 65% of its revenues by selling doughnuts directly to the public through its 106 company-owned stores.<br />
Another 31% comes from selling flour mix, equipment and other supplies to 186 franchised stores and its garners about 4% of<br />
revenues from franchisee licenses and fees. (FOR 7/7/03 p52)<br />
Krispy Kreme has introduced several off-premise programs during the first quarter and more rollouts are coming. Its in-store<br />
bakery program was added in 108 Sheetz c-stores in Pennsylvania and Akron, OH, and also was rolled out to 448 Winn-Dixie<br />
stores in six states, with an estimated 385 more stores to be added in the second quarter. Eight Super Target stores have<br />
added the in-store bakery program and packaged fresh doughnuts are being offered in 18 Target stores in Minneapolis. In<br />
addition, the company has introduced in-store bakery programs in some Costco stores and in additional Albertson’s stores and<br />
it began a systemwide roll-out of its in-store bakery and packaged fresh doughnut programs at 37 Hy-Vee stores in Iowa and<br />
Nebraska. (MBN 6/3/03 p1)<br />
Krispy Kreme believes it can triple the number of North American stores to between 750 and 1,000, according to John W.<br />
Tate, the company’s chief operating officer. The chain currently operates 300 stores. Tate noted that there also is fill-in<br />
opportunity for satellites and donut and coffee shops that use the company’s Hot Doughnut Machine technology and require<br />
less space than the full-production equipment used in its standard factory stores. The Hot Doughnut Machine reheats<br />
unglazed donuts made at a traditional Krispy Kreme store and prepares them for glazing at the point of sale. Separately,<br />
officials of Great Circle Family Foods, a 22-unit franchisee of Krispy Kreme in Southern California who holds exclusive<br />
franchising rights in that market, are exploring a possible sale of the company for $80 million. Krispy Kreme noted that the<br />
company retains the right of first refusal whenever a franchise owner decides to sell. (MBN 7/15/03 p1; NRN 7/21/03 p99; FIR<br />
7/21/03 p7)<br />
Wal-Mart expects to open a Krispy Kreme test shop inside a supercenter in Mount Airy, NC. The outlet likely will be a factory<br />
store where customers can view the doughnut production process, according to a Krispy Kreme spokeswoman. In October the<br />
doughnut chain also plans to open stores in four other Wal-Mart stores to test different shop formats. Two will be smaller-size<br />
“doughnut and coffee shops” and the other two will be “fresh shops” that sell doughnuts delivered each day from production<br />
centers. (NDNF 9/12/03)<br />
Restaurant Associates president and chief executive Nick Valenti has acquired an unspecified equity stake in the company,<br />
which was acquired by Compass Group North America five years ago. He will work with Rick Postiglione, president and chief<br />
executive of Compass Group’s B&I sector, and Dick Catani, president of Restaurant Services, to expand the B&I portion of<br />
Restaurant Associates throughout the U.S. Its accounts currently include Conde Nast in New York. In addition, Valenti and<br />
Compass Group have formed a joint venture that has the effect of creating a “premium hospitality group” that includes New<br />
York-based restaurants such as Brasserie, Tropica and Naples 45; sports and entertainment accounts; Au Bon Pain; Patina<br />
Restaurants on the West Coast; and the Krispy Kreme Donuts franchise for New York. Valenti will continue to serve as a<br />
member of the board of directors of Compass Group North America, a division of London-based Compass Group PLC. (FSD<br />
4/15/03 p18; R&I 4/1/03 p23)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
364
<strong>RISE</strong> COMPANY PROFILE<br />
Krispy Kreme’s same-store and weekly sales are telling somewhat different stories. Since going public in 2000, the doughnut<br />
chain has posted impressive same-store sales growth each quarter. In its most recent quarter ended August 1, systemwide<br />
same-store sales rose 11.3% but in the same period, systemwide average weekly sales fell 1% to $63,700. The gulf between<br />
same-store sales and average weekly sales has prompted some caution among investors and Wall Street analysts. But Krispy<br />
Kreme has continued to report healthy growth. For the second quarter, it posted a 47% increase in net income to $13 million.<br />
Revenues grew 41% to $161.8 million. Krispy Kreme maintained that the company continues to exceed its average weekly<br />
sales target of $60,000. In related news, 23-unit Great Circle Family Foods, a Krispy Kreme franchisee in Southern California,<br />
may be for sale. The company said it is not actively seeking a buyer but would resume negotiations with Krispy Kreme if the<br />
franchisor “came to us with a price that’s fair.” The company conceded that same-store sales are not growing but noted that is<br />
not the measure it uses to gauge its health since the overall Krispy Kreme concept centers around integrating retail and<br />
wholesale sales. (NRN 9/29/03 p1 & 6; BW 9/29/03 p50; FIR 9/22/03 p3; MBN 9/2/03 p14)<br />
Krispy Krème for the third quarter ended November 2, reported that net income grew to $14.5 million from $10.1 million in the<br />
same period a year ago. Revenues increased 43% to $169.6 million. Systemwide same-store sales rose 9.5% and at<br />
franchised outlets, 13%. (NRN Daily NewsFax 11/24/03)<br />
Krispy Krème opened its first commissary in Mexico City. (NRN Daily NewsFax 11/24/03)<br />
Krispy Kreme Doughnuts plans to open its first unit in Washington, DC, and has signed a lease for a location on DuPont<br />
Circle. In other news, the company’s earnings jumped 43% on a 31% hike in revenues for the third quarter (ended November<br />
2). Its net income was $14.5 million, compared to $10.1 million in the previous third quarter. Corporate revenues were $169.6<br />
million and systemwide sales increased 30% to $253.1 million. Comparable-store sales systemwide rose 9.5% and franchisorowned<br />
outlets reported a 13% gain. (FIR 12/1/03 p6; NDNF 11/24/03)<br />
The Orlando International Airport’s new food court is being operated by Select Service Partners. The food court, located in the<br />
center of the main terminal of the Orlando, FL, airport, includes McDonald’s, Sbarro and Krispy Kreme. Next year, the airport<br />
plans to open a Romano’s Macaroni Grill and Fox Sports Bar. (NRN 11/24/03 p24)<br />
P.F. Chang’s China Bistro was the highest-ranked restaurant company on Forbes magazine’s “200 Best Small Companies” list<br />
this year. It ranked No. 24 and was followed by Krispy Kreme Doughnuts at No. 29. Also on the list were Sonic Corp., Total<br />
Entertainment Restaurant Corp., Panera Bread, California Pizza Kitchen and IHOP Corp. (NDNF 11/19/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
365
Krystal Company<br />
Headquarters<br />
1 Union Square, Chattanooga, Tennessee 37402 USA<br />
Tel: (423) 757 1550 Fax: (423) 757 5642<br />
www.krystalco.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 389,469 372,412 355,585<br />
Company-owned ($000) 246,245 246,898 253,967<br />
Franchised ($000) 143,224 125,514 101,618<br />
U.S. Number of Units 421 411 390<br />
Company-owned 245 246 251<br />
Franchised 176 165 139<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,003 996 1,011<br />
Concept Positioning |<br />
The Krystal Co. operates Krystal Hamburgers restaurants that offer drive-through, sit-down, and carryout service. Most<br />
locations have drive-through windows, which account for 50% of volume. About 90% of the chain's restaurants are open 24<br />
hours a day and some 17% of its sales are from the breakfast day part.<br />
The company also operates Krystal Kwik, a double drive-through version of its concept.<br />
Krystal units are freestanding, with seating for approximately 60 patrons. A recently developed prototype is 1,850 sq. ft. It also<br />
has a modular building that can be erected in a matter of days. Unit colors were updated a few years ago to attain a more<br />
contemporary look. This is evident in its bold red and white logo and uniforms.<br />
It has also begun developing nontraditional stores with locations in both C-stores and truck stops.<br />
Krystal Kwik is a limited menu, double-drive-through concept that for the most part is really a smaller version of Krystal units.<br />
The concept is targeted for expansion.<br />
The forerunner of today's Krystal Restaurants opened in downtown Chattanooga in 1932. Founders, Rody Davenport Jr. and<br />
J. Glenn Sherrill, served 1 oz. hamburgers, cold drinks, coffee, homemade pies, eggs, toast, bacon and waffles. In the 1950s,<br />
French fries and milk shakes were added to the menu, and in 1968, chicken. In 1985, Rody Davenport, III, bought out all other<br />
family interests in Krystal, and the chain then began to emphasize its original 1-oz. burger. In mid-1992, Krystal issued its first<br />
public offering. Voluntary bankruptcy was filed late 1995 to resolve numerous employee lawsuits for violations of the Fair<br />
Labor Standards Act. In September 1997, the company was acquired by Port Royal Holdings and taken private.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
366
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: 1-oz. square hamburger steamed with mustard, pickles and onions; sells for 54¢. Other items include Krystal<br />
Corn Pups (hot dogs) plain, Chik’n Bites, Chili-Cheese fries, Chik salads, chili and chili-cheese. Breakfast items cooked-toorder;<br />
features egg dishes and sandwiches. Krystal Kwik: hamburgers, cheeseburgers, double burgers, fries and soft drinks.<br />
<strong>Menu</strong> Prices: 54 and up. Check Averages: $4.84<br />
Personnel |<br />
James Exum, Chief Executive Officer<br />
Gloria Daniels, Director of Purchasing<br />
Larry Bentley, Chief Financial Officer<br />
Michael Williams, Vice President of Marketing<br />
Jeffrey R. Krause, Vice President of Operations<br />
Alan Wright, Director of Marketing<br />
News & Other |<br />
Krystal Co.’s new mini-prototype is 1,400 sq.ft. and seats 31, down from the typical unit’s 2,400 sq.ft. and 56 seats. The<br />
smaller unit is designed for small towns and lower-population markets. With 425 units in 15 states, Krystal expects to double<br />
its number of units within five years. Plans for 2003 call for 46 openings. (FER 6/03 p10)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
367
la Madeleine<br />
Headquarters<br />
6688 N. Central Expy. Suite 700, Dallas, Texas 75206 USA<br />
Tel: (214) 696 6962 Fax: (214) 696 0485<br />
www.lamadeleine.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 122,000 120,000 125,000<br />
Company-owned ($000) 122,000 120,000 125,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 62 62 62<br />
Company-owned 62 62 62<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,000 2,000 2,016<br />
Concept Positioning |<br />
la Madeleine is a chain of bakery/cafes that specializes in high-quality French breads and baked goods reminiscent of<br />
authentic French country bakeries. Located in strip centers or as freestanding units, the goal of the chain is to become a<br />
neighborhood cafe for its patrons. Bakery sales account for approximately 18% of total sales. The chain also has a<br />
commissary-bakery in each of its eight current markets.<br />
Units average 4,000–4,500 sq. ft. with seating for 120–160 persons. Many also have outdoor seating for another 23–28. Décor<br />
is reminiscent of a French country village. Walls are adorned with antique baker's tools, and exposed beams and wood floors<br />
echo the look of a kitchen or library. A wood-burning oven is also featured in each unit.<br />
The chain was founded in 1983 in Dallas and, in December 2001, was sold to a group of investors led by Paris-based Groupe<br />
Le Duff, which operates 500 restaurants and bakeries in France.<br />
<strong>Menu</strong> Positioning |<br />
Features authentic French breads including baguettes, sourdough and 7-grain; other breads include focaccia, country wheat<br />
and raisin. Entrees include Rosemary Rotisserie Chicken, Salmon en Croute, Lamb Navarin and Poulet Riesling. Also menus<br />
pastas, sandwiches, soups and salads. Breakfast fare includes made-to-order omelets and eggs and French Toast Royale as<br />
well as fresh fruit, pastries, muffins, scones and croissants. Sandwiches include ham and cambonzola on walnut and bacon<br />
roll, roasted vegetable paniné and light chicken or tuna salad. Salads range from Bibb with chicken, Alsatian potato to Caesar.<br />
Features French roast coffees. <strong>Menu</strong> Prices: $2.50–$9.95. Check Average: $9.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
368
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
La Madeleine has added several upscale dishes to its menu since hiring Andre Halston as chief culinary officer. Entrée<br />
choices now include beef tenders sautéed in a red-wine demi-glace with mushrooms, garlic mashed potatoes and green<br />
beans amandine; herb-crusted pork tenderloin with honey-dijon demi-glace; rosemary rotisserie chicken with portobello<br />
mushrooms, broccoli and mushroom sauce; and a shrimp cassoulet of shrimp topped with Hollandaise sauce and seasoned<br />
bread crumbs, then baked and served with fettucine in lobster sauce. (Chef 10/03 p28)<br />
Personnel |<br />
Jean-Roch Vachon, Chairman<br />
Wallace Doolin, Chief Executive Officer<br />
Greg Buchanan, Chief Financial Officer<br />
Janet Smith, Director of Purchasing<br />
Linda Knight, Director of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
369
La Salsa Fresh Mexican Grill<br />
Headquarters<br />
2207 S. 48 St., Tempe, Arizona 85282 USA<br />
Tel: (602) 426 0477 Fax: (602) 426 0480<br />
www.lasalsa.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 62,352 61,000 61,000<br />
Company-owned ($000) 38,550 37,000 35,600<br />
Franchised ($000) 23,802 24,000 25,400<br />
U.S. Number of Units 99 98 92<br />
Company-owned 57 57 45<br />
Franchised 42 41 47<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 676 600 791<br />
Concept Positioning |<br />
La Salsa was originally patterned after Mexico's traditional neighborhood taquerias, where friends gathered to meet and eat.<br />
The chain, though, has evolved into a fresh Mexican grill that specializes in fresh, healthy, authentic Mexican dishes.<br />
Promoting its non-use of can openers, freezers, microwaves or lard, its limited serve format fills the void between fast-food and<br />
dinner house quality fare attracting a very loyal and diverse customer base. Most items can be prepared for the healthconscious<br />
customer. The company recently rolled out a new menu called "Gourmet Flavors of Mexico" in all of its units.<br />
Takeout accounts for 30% of the business.<br />
Units, which are built around three design models to suit any mall or freestanding location, range in size from 500–1,500 sq. ft.<br />
Founded in 1979 in West Los Angeles by Howdy Kabrins, La Salsa began franchising in 1989. In mid-1999, the company was<br />
acquired by Santa Barbara Restaurant Group. In March 2002, La Salsa, along with Santa Barbara Restaurant group, was<br />
acquired by CKE Restaurants.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: tacos, gourmet burritos served with chips, taquitos and quesadillas. Also menus combination plates, salads<br />
and sides. Recent additions include burritos made with pesto chicken, Caesar salad and teriyaki-type ingredients. <strong>Menu</strong><br />
Prices: $2.35–$7.45. Check Average: $5.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
370
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Population shifts affect the restaurant industry. Emerging chains often look to population trends and try to respond<br />
appropriately; so many must have found recent U.S. Census Bureau data intriguing. The bureau revealed that Hispanics have<br />
become the country’s largest minority group with about 37 million people, with blacks numbering approximately 36 million.<br />
Studies also show that Hispanics are the third largest-spending ethnic group after whites and blacks. The greater the Hispanic<br />
community in the U.S., the more influence it likely has on all Americans and the food industry. Their culture, particularly the<br />
cuisine, spreads as Hispanic chefs prepare Latin-inspired foods and entrepreneurs open more such restaurants. The<br />
increased supply of Mexican and Latin fare seems welcome considering Americans have more adventuresome tastes than<br />
ever and increasingly indulge in ethnic fare. Naturally, this increased acceptance propels demand so more concepts emerge to<br />
feed it. In fact, <strong>Technomic</strong> believes the Mexican quick-casual segment in particular will double over the next five years. New<br />
competitors are sprouting up within the U.S. while several promising chains are being imported from Latin America and<br />
Mexico. These chains seem to cater well to those seeking authentic “south of the border” foods. The Wall Street Journal<br />
recently reported on such imported concepts that are worth watching, including: · Churromania—limited-service churro chain,<br />
imported in 2001 · Pollo Campero—limited-service chicken chain, imported in 2002 · El Fogoncita—quick-casual pork taco<br />
chain, imported in 2003 · Gorditas Dona Tota—limited-service cheese pastry chain, imported 2003 · El Tizoncito—quickcasual<br />
pork taco chain, imported 2003 Major restaurant companies have already invested in the segment. Jack in the Box<br />
bought Qdoba Mexican Grill this past February; Wendy’s International is invested in Baja Fresh Mexican Grill; and McDonald’s<br />
owns Chipotle Mexican Grill. The list of emerging chains with Mexican and Latin influences, including Southwestern fare, that<br />
we’re tracking includes Salsarita’s Fresh Burrito (6 units, profiled in this issue); Z’Tejas (12 units); La Salsa (96 units);<br />
Pancheros Mexican Grill (9 units); Chico’s Tacos (23 units); Burrito Beach (5 units); Burritoville (12 units); Taqueria Cantina<br />
and Burrito Joint (10 units); Left at Albuquerque (8 units); Atomic Burrito (3 units); Blue Mesa Grill (4 units); and Tia’s Tex Mex<br />
(29 units). While the number of Hispanics escalates, the amount of Americans in general who enjoy Mexican and Latin fare<br />
seems to grow as well, painting a bright future for Mexican and Latin-inspired concepts.<br />
The U.S. Marine Corps has no intention of voiding its $881 million foodservice contract with French-based Sodexho, despite a<br />
request for cancellation from 60 Republican members of Congress that was sent to Defense Secretary Donald Rumsfeld,<br />
according to a Marines official. Officials of Sodexho’s U.S. arm emphasized that such a cancellation would primarily affect<br />
American employees of the company. In related news, Sodexho was preparing to open a food court at the Miramar Air Naval<br />
Station in San Diego in May. Miramar is the only military base at which Sodexho operates cash facilities. Its new food court will<br />
include commercial brands such as Quiznos and Sodexho brands such as Sky Ranch Grill and La Salsa. (NRN 4/21/03 p3 &<br />
6)<br />
CKE Restaurants expects to sell its 26-unit Timber Lodge Steakhouse for $10 million to an unidentified buyer, according to its<br />
quarterly SEC report. The deal was expected to close in August. Timber Lodge is CKE’s only full-service concept. CKE<br />
acquired Timber Lodge as part of its purchase of the La Salsa Fresh Mexican Grill and Green Burrito chains. Sixteen of<br />
Timber Lodge’s restaurants are in Minnesota. (NRN 7/14/03 p3; FIR 7/7/03 p8)<br />
La Salsa for the four weeks ended October 6, reported same-store sales decreased 1.8%. (NRN Daily NewsFax 10/16/03)<br />
La Salsa Fresh Mexican Grill for the four weeks ended November 3, reported same-store sales increased 0.2%. (NRN Daily<br />
NewsFax 11/14/03)<br />
CKE Restaurants for the four weeks ended December 29, reported that same-store sales increases of 4.5% at Carl’s Jr., 7.3%<br />
at Hardee’s and 1.1% at La Salsa. (NRN Daily NewsFax 1/8/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
371
Landry's Restaurants, Inc.<br />
Headquarters<br />
1400 Post Oak Blvd., Houston, Texas 77056 USA<br />
Tel: (713) 850 1010 Fax: (713) 850 7274<br />
www.landrysseafood.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Chart House<br />
Crab House/Capt. Crab's Take-Away<br />
Joe's Crab Shack<br />
Landry's Seafood<br />
Muer Seafood Restaurants<br />
Rainforest Cafe<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,045,000 1,021,800 -<br />
Company-owned ($000) 1,045,000 1,021,800 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 277 270 -<br />
Company-owned 277 270 -<br />
Franchised - - -<br />
International Sales ($000) 43,000 46,900 -<br />
International Units 9 11 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Landry’s is a multi-concept restaurant company that focuses its operations primarily in the casual-dining segment. Most of its<br />
brands are in the seafood sub-segment, but through an acquisition of Rainforest Cafe in 2000 moved in the Varied <strong>Menu</strong> subsegment.<br />
Of its seafood brands, Joe’s Crab Shack is considered its primary growth vehicle. Landry's is the second largest<br />
seafood chain in the U.S.<br />
In addition, the company is the primary developer of Kemah Boardwalk, a 40-acre entertainment attraction south of Houston<br />
that has eight restaurants—including The Aquarium with its 80,000-sq. ft. aquarium, retail shops, a marina and various<br />
attractions. It is also redeveloping two facilities in Houston’s Buffalo Bayou area. The project consists of a 200,000-gallon<br />
aquarium, an Aquarium Cafe and an Aquarium restaurant, dancing fountains, a 90-ft. ferris wheel and a train on which to<br />
explore the five-acre area. And the company has entered into an agreement to construct and operate a convention center in<br />
Galveston, TX. In March 2003, Landry's acquired the Colorado Ocean Journey, an aquarium located in Denver, with a winning<br />
bid of $13.6 million.<br />
Landry's dates back to the early 1980s with a unit opening in Katy, TX. The current corporation was formed in June 1993 and<br />
went public with a 2-million share offering in August of that same year. In 1996, the company acquired Bayport Restaurant<br />
Group, then parent of The Crab House chain. In late 2000, the company completed its takeover of Rainforest Cafe with $3.25a-share<br />
cash offer. To reflect its expansion and broadening of operations, Landry's Seafood changed its name to Landry's<br />
Restaurants, Inc in 2001.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
372
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Landry’s Restaurants expects to open 28–30 restaurants this year. Of those openings, 18–20 will be Joe’s Crab Shacks, its<br />
largest concept. The Joe’s openings include the conversion of about 10 existing Chart House locations to the Joe’s brand.<br />
Other openings include new units for the Saltgrass Steakhouse, Rainforest Cafe and Aquarium brands. (RB 2/15/03 p41)<br />
Angelo and Maxie’s Inc. is being liquidated. Its board of directors approved the sale of three of its five steakhouses to an<br />
unnamed operator who will convert them to another concept. The stores are in New York City; Reston, VA; and Washington,<br />
DC. The company took on the Angelo and Maxie’s name after selling its Chart House chain to Landry’s Restaurants. It plans<br />
to sell its remaining two steakhouses, including its flagship in New York City. (Nation’s Restaurant News)<br />
Personnel |<br />
Tilman Fertitta, Chairman<br />
Paul West, Chief Financial Officer<br />
Richard Ervin, Vice President of Operations<br />
Toni Niece, Vice President of Marketing<br />
Joe Leahy, Director of Purchasing<br />
Joe Leahy, Director of Purchasing<br />
Toni Niece, Director of Marketing<br />
Kathy Ruiz, Chef<br />
News & Other |<br />
Landry’s Restaurants made a winning bid of $13.6 million to acquire the bankrupt Colorado Ocean’s Journey, a non-profit<br />
aquarium that cost $93 million to build. The company plans to transform the 17-acre aquarium complex into an entertainment<br />
venue with a seafood restaurant and amusement rides. Located in downtown Denver, the destination project will be similar to<br />
the aquarium complex that Landry’s recently opened in Houston. (NDNF 3/6/03)<br />
Several large restaurant companies have been sued by California’s attorney general for failing to warn patrons about mercurylaced<br />
seafood’s potential harm. Brinker International, Darden Restaurants, Landry’s Restaurants and 13 other major chain<br />
operators are the target of lawsuits that claim they violated the state’s Proposition 65 law by failing to warn patrons about<br />
carcinogenic mercury, methyl mercury and related compounds in shark, swordfish and tuna. The lawsuits seek unspecified<br />
civil penalties, court costs and injunctions that bar sales of such fish unless Prop. 65 notification requirements are met. Such<br />
warnings have begun appearing in California grocery stores, which were the target of similar lawsuits earlier this year. A group<br />
of the restaurant chains had requested that the attorney general file suit, deeming it preferable to litigation threatened by two<br />
private groups. Landry’s general counsel predicted that the issue would be resolved within 60 days. (NRN 4/28/03 p1; RB<br />
5/1/03 p12)<br />
Landry’s Restaurants reportedly is exploring Corpus Christi, TX, for a new entertainment development. The company currently<br />
owns two facilities in the city’s harbor marina and it is proposing to build two more as well as add amusement rides and turn an<br />
adjacent street into parking. In addition, the company would assume management of the marina and make necessary<br />
improvements. The project is expected to cost more than $40 million, with the city possibly selling $20 million worth of bonds<br />
that would be paid back through rent and taxes. Landry’s would invest $20 million in the project. (AB 9/8/03 p8)<br />
Landry’s Restaurants Inc. for the third quarter, reported same-store sales increased 3.2% compared to the same quarter last<br />
year. Revenues increased 17% to $302.2 million. (Nation’s Restaurant News 11/10/03 p12)<br />
Landry’s Restaurants is opening its third Aquarium Restaurant at Opry Mills in Nashville. Located at the former site of the<br />
Opryland Theme Park, the restaurant will be 20,000 sq.ft. and seat 400. (AB 10/6/03 p9)<br />
Landry’s Restaurants acquired the La Griglia and Grotto casual-dining Italian restaurants in Houston from restaurateur Tony<br />
Vallone. Landry’s new Grotto division will be headed by Jeff Vallone, the son of Tony Vallone and a Vallone Restaurant Group<br />
staff member for 20 years. Tony Vallone will be a consultant and continue to operate his fine-dining Tony’s and more casual<br />
Anthony’s in Houston. (NDNF 11/25/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
373
Landry's Seafood<br />
Headquarters<br />
1510 W. Loop South, Houston, Texas 77027 USA<br />
Tel: (713) 850 1010 Fax: (713) 386 7709<br />
www.landrysseafood.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 132,000 131,600 130,400<br />
Company-owned ($000) 132,000 131,600 130,400<br />
Franchised ($000) - - -<br />
U.S. Number of Units 41 41 41<br />
Company-owned 41 41 41<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,300 3,300 3,180<br />
Concept Positioning |<br />
Landry's Seafood Restaurants owns and operates Landry's Seafood House and Willie G's. Appealing to a broad-based<br />
clientele, units are open for lunch and dinner.<br />
Landry’s Seafood House has no two units with an identical look but all are readily identified by a large theater-style marquee<br />
over each entrance and a distinctive wood and brick facade, thus creating the feel of an old traditional seafood restaurant.<br />
They range in size from 5,000–16,000 sq. ft., with an average of around 8,000 sq. ft. and seating for 215 in the dining room<br />
and another 10–20 in the bar area. Interiors are colorful murals depicting motifs applicable to each location or regional area.<br />
Many also have both indoor and outdoor seating.<br />
Landry’s looks for unique locations for its units. For example, the Corpus Christi, TX, unit is on a barge; the one in New<br />
Orleans is in the heart of the French Quarter.<br />
Landry's Seafood House dates back to the early 1980s with a unit opening in Katy, TX.<br />
<strong>Menu</strong> Positioning |<br />
Features broiled, grilled and fried seafood and fresh fish including red snapper, shrimp, crawfish, lump crab meat, lobster,<br />
scallops and soft shell crabs. Many come with signature toppings such as Pontchartrain (mushroom wine sauce and lump crab<br />
meat) and Landry (cheddar cheese sauce, shrimp and crab). Also menus wide variety of appetizers, salads, soups and side<br />
dishes as well as beef, poultry and pasta entrees. Desserts made fresh daily. Full liquor service available; accounts for 16% of<br />
sales. <strong>Menu</strong> Prices: $5.99–$20.99. Check Averages: $16–$17.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
374
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Landry’s for the quarter ended September 30, reported same-store sales increased 3.2%. (RestaurantBiz.com 10/29/03)<br />
Landry's for the third quarter, reported revenues increased 25% to $302.2 million compared to the same quarter last year. Net<br />
income increased 17% to $18.4 million. (NRN Daily NewsFax 10/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
375
LaRosa's Pizzerias<br />
Headquarters<br />
2334 Boudinot Ave., Cincinnati, Ohio 45238 USA<br />
Tel: (513) 347 5660 Fax: (513) 347 4674<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 106,500 101,013 97,565<br />
Company-owned ($000) 28,900 28,165 25,422<br />
Franchised ($000) 77,600 72,848 72,143<br />
U.S. Number of Units 53 48 48<br />
Company-owned 14 13 13<br />
Franchised 39 35 35<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,009 2,104 1,955<br />
Concept Positioning |<br />
LaRosa’s Neighborhood Pizzerias are widely recognized for pizza as well as full menu of more than 40 selections. Customers<br />
can dine-in with full service or order for carryout and/or delivery.<br />
The chain has three prototypes, with most located in small strip shopping centers and averaging 3,500 sq. ft. There are also a<br />
large number of freestanding units. They average 6,000 sq. ft. with seating for 95–150 patrons. Its third prototype is for<br />
delivery and carryout only and is located outside the reach of full-service sites. These units average 2,000 sq. ft.<br />
In the past year, LaRosa’s opened its latest “2010” prototype in Centerville, OH (suburban Dayton). The new building design<br />
includes a full bar, a pick-up area offering additional retail products and an expanded menu.<br />
Donald S. “Buddy” LaRosa founded the company in 1954 on Cincinnati’s West Side. Mr. LaRosa continues to own and<br />
operate 13 units in Cincinnati and his son, Mike LaRosa, now serves as President and Chief People Officer of the company.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Deluxe, Four, Lite, Prima Veggie, Meat and Double Pepperoni Topper pizzas. Toppings include pepperoni,<br />
sausage, mushrooms, ground beef, onions, green peppers, black olives, bacon, fresh tomato slices and extra cheese.<br />
Specialty “Focaccia Style” pizza is also popular. The restaurant features several other varieties of pizza with traditional thin,<br />
thick crispy pan and medium super crusts as well as salads, pastas, calzones and hoagy sandwiches. Beer and wine service<br />
available. <strong>Menu</strong> Prices: $2.69–$15.79<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
376
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
LaRosa’s Pizzeria launched a new dessert line to broaden its menu diversity as it begins expanding a new prototype. Offerings<br />
include a two-layer buttermilk Italian crème cake with coconut, walnuts and raspberry sauce; a hot-fudge brownie with crème<br />
caramel ice cream; dessert pizza frite consisting of fried pizza dough triangles dusted in powdered sugar and served with hotfudge<br />
dipping sauce; and two flavors of ice cream with soft biscotti. The cake and brownie are over-sized offerings designed<br />
for two diners. (Nation’s Restaurant News, 6/9/06, p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
377
Lee's Famous Recipe<br />
Headquarters<br />
5995 Barfield Road, Atlanta, Georgia 30328 USA<br />
Tel: (404) 459 5800 Fax: (770) 671 9855<br />
www.winners-international.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 100,500 102,000 105,000<br />
Company-owned ($000) 10,500 12,000 12,000<br />
Franchised ($000) 90,000 90,000 93,000<br />
U.S. Number of Units 155 158 163<br />
Company-owned 15 17 18<br />
Franchised 140 141 145<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 655 640 666<br />
Concept Positioning |<br />
Lee's Famous Recipe Chicken is a fast food concept serving the Famous Recipe roast fried and crispy fried chicken. The<br />
Famous Recipe product is pressure-fried and the Crispy is an open-vat fried product.<br />
Units average 2,200 sq. ft., with a drive-through window and seating for sixty. Lee's launched an image enhancement program<br />
in which it is changing roofs from green to red, outside walls from white to beige, adding neon to its exteriors, and replacing<br />
signs with new logos that use the word Lee's; the word "fried" was dropped.<br />
The chain was founded in 1966 in Ohio by Harold Omer and Lee Cummings, Colonel Sanders' nephew. The company<br />
remained in private hands until it was acquired by Shoney's in 1981. The name of the chain was changed to "Lee's Famous<br />
Recipe," after one of the chain's founders in 1983.<br />
In July 1995, Shoney's announced it had sold the chain to RTM Restaurant Group and the sale was completed in October. In<br />
early 2000, RTM sold its controlling interest to Winners International, a strategic partnership with RTM and BancBoston<br />
Development Co. Winners International also owns the Mrs. Winners Chicken and Biscuits chain. RTM retained a 20% stake in<br />
the new company. However, in 2002, RTM rolled Winners International operations under Arby's operations leadership.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Famous Recipe pressure-fried, "crispy-plus" and oven-roasted chicken. Full meal includes 2 pieces of<br />
chicken, coleslaw, biscuit, and choice of sides. Also featured: country-fried steak, barbecue chicken sandwiches, chicken<br />
tenders and livers, biscuits, 9 vegetables and salads. Newest item: Chicken Double Dippers. Desserts include brownies,<br />
cakes, and pies<strong>Menu</strong> Prices: $1.99–$16.99. Check Averages: $5–$7.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
378
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Lee’s Famous Recipe Chicken is being acquired by foodservice veteran Jeff Miller from RTM Restaurant Group. Miller ran the<br />
former DenAmerica group in Phoenix until 1995 and currently is heading an eight-unit Pizza Hut franchise in the Florida<br />
panhandle. He will spend 90 days in discussion with 154-unit Lee’s operators before making any announcements about menu<br />
and expansion strategies. Two-thirds of the Lee’s system is in Kentucky and Ohio. RTM said the Lee’s sale allows it to put its<br />
full emphasis on Arby’s development. RTM operates 789 Arby’s in 22 states. It acquired Lee’s from Shoney’s Inc. in 1995 and<br />
put the chain on the market last year. (NDNF 10/10/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
379
Legal Sea Foods<br />
Headquarters<br />
33 Everett St., Allston, Massachusetts 02134 USA<br />
Tel: (617) 783 8084 Fax: (617) 782 4479<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 148,101 141,054 126,510<br />
Company-owned ($000) 148,101 141,054 126,510<br />
Franchised ($000) - - -<br />
U.S. Number of Units 26 26 25<br />
Company-owned 26 26 25<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,696 5,421 5,060<br />
Concept Positioning |<br />
Legal Sea Foods operates a collection of premier restaurants that specialize in the service of fresh seafood for lunch and<br />
dinner. Its slogan is "if it isn’t fresh, it isn't Legal." Each unit has high volume with as many as 7,000 entrees served per week.<br />
Units vary in size, however a few seat some 250 patrons. Oyster bars located in each unit serve appetizers for those waiting<br />
for tables as lines can often be anywhere from 30 minutes to two hours. All are decorated differently but each gives the feeling<br />
of a "clean" look, frequently through the use of blue and white colors, large windows and mahogany woodwork.<br />
The company prepares and processes its own fish, salad dressings, sauces, desserts and bases in a 73,000 sq. ft. quality<br />
control center (QCC) that delivers to units each day.<br />
In the 1950's, Legal Sea Foods began operation as an adjunct to a grocery store. In 1968, its founder George Berkowitz added<br />
a small restaurant. Today the company is run by his son, Roger, president and chief executive officer.<br />
The company also operates a mail-order division, Legal Sea Foods Mail Order, which ships fresh seafood all over the country,<br />
a retail market and a catering division.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: some 40 varieties of fish that change each day. Common varieties include grey sole, halibut, trout, bass,<br />
tuna, swordfish and salmon. Uncommon varieties range from skate to cusk and monkfish. Specialties include baked shrimp<br />
stuffed with Maryland crab, grilled swordfish, crab cakes and lobster. Value dinners include fish, starch and vegetable. Full<br />
liquor service available. Entree Prices: $11.95–$22.95. Check Averages: $35.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
380
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Legal Sea Foods launched a limited-time Seasonal Sensations menu that highlights favorites from past promotions. The<br />
seven-item collection is also being billed as price-friendly to address the current economic climate. Offerings include a starter<br />
from its popular Spices of Life Indian promotion. The Grilled Chettinad Scallop Appetizer features scallops dusted with a 12spice<br />
blend, served with mango pineapple salsa ($10). Other dishes include a Scallop Trio of maple balsamic-glazed scallops<br />
wrapped in bacon, tempura scallops and grilled scallops ($18) and Scallops and Mushrooms with Bow Tie Pasta ($12, lunch;<br />
$18, dinner). Rounding out the Seasonal Sensations menu is Shrimp Primavera (penne pasta tossed with shrimp, fresh<br />
vegetables and cream, $18), Asian Glazed Salmon ($15), a Shrimp Wrap with Chowder ($12) and Fried Calamari Salad<br />
tossed with feta cheese, olives and tomato balsamic vinaigrette ($15). The special menu was offered through March.<br />
(Restaurant Business Daily News)<br />
Live fire cooking is one of the oldest cooking techniques, but it is now experiencing renewed interest among chefs. Despite the<br />
hassles, which include strict regulation and considerable expense in many cases, chefs consider the unique smoky flavors that<br />
result from this method worth the effort. Many different types of foods can be placed directly on glowing embers if they have<br />
some type of outer layer or skin. They are typically cooked without oil or seasoning and instead simply charred until cooked<br />
through. After removing from the fire, the blackened outer layer is peeled and the item is served. Chez Panisse in Berkley, CA,<br />
uses an in-house fireplace to cook just about everything, including seafood soups, whole lambs and pigs. Its ember-roasted<br />
artichokes are favored for their unique smoky flavor that is brought about through their preparation. New York’s Savoy also<br />
utilizes a fireplace to create its three-course fireplace meals. Offerings vary according to ingredient availability, with current<br />
offerings including a kale and clam soup; garlic and rosemary marinated pork served with cannellini beans; and crème brulee.<br />
The entire meal is prepared in various parts of the fireplace. At Beacon, also in New York, a wood-burning beehive stove is<br />
used to prepare dishes ranging from veal to pizza. Chef Waldy Malouf noted that foods enriched with fat take on more smoke<br />
flavor than lower-fat items and as a result he tops oysters with butter sauce when cooking. Legal Seafood is also taking<br />
advantage of the live fire cooking, but uses a proprietary gas grill that is enhanced with chunks of wood. (Nation’s Restaurant<br />
News)<br />
Legal Sea Foods is promoting its latest seasonal selections. Its Shrimp Trio features buttery baked shrimp with savory stuffing,<br />
tender grilled shrimp and crunchy fried coconut-battered shrimp with sweet orange marmalade sauce on the side. Its Tortilla<br />
Goat Cheese Salad with Shrimp is a blend of fried blue and white tortilla strips and romaine lettuce topped with Granny Smith<br />
apples, red peppers and fresh avocado. Grilled shrimp, goat cheese and dressing are the final touches. Seafood Antipasto is<br />
an appetizer platter of squid, shrimp, mussels and littleneck clams nestled in salad greens and supplemented with olives,<br />
cucumber, tomato and Provolone cheese. Finally, Seafood Ravioli is filled with lobster, scallops and shrimp and served in a<br />
shrimp and lobster seafood sauce. (Company Web Site)<br />
Indian spices are becoming more mainstream as interest in that cuisine grows. Curry, fennel seed, fenugreek and garam<br />
masala (a spice blend) are all gaining ground as diners gain exposure to traditional Indian dishes and chain menus begin to<br />
showcase Indian flavors. California Pizza Kitchen has long served a tandoori pizza and Roly Poly offers a Delhi Chicken wrap<br />
of curried chicken salad, Swiss cheese, bacon, avocado, pineapple, sprouts, lettuce and mango chutney. When Legal Sea<br />
Foods ran its Spices of Life Indian promotion for two months last year, it featured dishes such as Shrimp Tanjore (with chunky<br />
tomato sauce, fennel, clove, cinnamon and turmeric) and vegetable curry (seasonal vegetables spiced with curry leaves,<br />
mustard seed, coriander, garlic, ginger, clove, cinnamon, turmeric and coconut milk). These dishes proved so popular that<br />
they were added to the core menu. Indian dishes are also represented on the comfort food menu at Chicago’s Aria. Its<br />
signature naan (flatbread) is baked in a tandoori oven and offered in three varieties: plain, potato (with peas, cumin, black<br />
pepper, salt, ginger and garlic) and vegetable (with red and green onions and red and green peppers). Each is served with<br />
four dipping sauces: coriander-yogurt, cashew-raisin, spicy lentil and potato-pea. (Chef Magazine, 7/03, p39)<br />
Personnel |<br />
George Berkowitz, Chairman<br />
Roger Berkowitz, Chief Executive Officer<br />
Bruce Cartwright, Chief Financial Officer<br />
Rich Vellante, Chef<br />
Jeff Lipson, Director of Purchasing<br />
Ann Flannery, Director of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
381
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Legal Seafood has opened a combined commissary and processing facility on the Boston waterfront. At 50,000 sq.ft., the<br />
building replaces Legal’s former fish-processing facility in Allston, MA. The new building will also house all of the company’s<br />
hot and cold preparation, including the making of all soups and chowders. (SBR 10/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
382
Lettuce Entertain You Restaurants<br />
Headquarters<br />
5419 N. Sheridan Rd., Chicago, Illinois 60640 USA<br />
Tel: (773) 878 7340 Fax: (773) 878 7667<br />
www.leye.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Mon Ami Gabi<br />
Wildfire<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 135,000 170,000 165,000<br />
Company-owned ($000) 135,000 170,000 165,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 30 37 36<br />
Company-owned 30 37 36<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,500 4,000 4,583<br />
Concept Positioning |<br />
Lettuce Entertain You Enterprises (LEYE) is one of the largest restaurant companies operating diverse concepts. Its chairman<br />
and founder, Richard Melman, is highly respected as a new concept developer and as a result many of its one-of-a-kind<br />
restaurants are monitored closely by the industry. Most of them are in the casual-dining segment. Its current thrust is to not<br />
only continue the creation of unique new concepts but also expand existing trade names that seem to have "chain" potential.<br />
In addition, the company is beginning to move into markets beyond its Chicago roots.<br />
LEYE has a catering group as well that allows customers to arrange private and semi-private parties in any of the dedicated<br />
spaces in its various units.<br />
Units vary in size and decor, but most are full-service, open for lunch and dinner, and some for Sunday brunch. R.J. Grunt's,<br />
the first concept developed by the chain, has an eclectic and diverse sandwich-type menu; 1996 marked its 25th Anniversary.<br />
Ambria, on the other hand, is an operating/management partnership that offers fine dining in a refined, formal atmosphere and<br />
is considered one of Chicago’s best restaurants. Foods are prepared by using fresh ingredients as much as possible. <strong>Menu</strong>s<br />
are reviewed every three months to reflect customer preferences and fluctuations in price. Decor and ambiance packages vary<br />
widely as well. R.J. Grunt's is decorated with plants, original artwork and wooden benches. Papagus has a Greek menu of<br />
appetizers or mezedes and seats 220, divided into sections representing different regions of Greece.<br />
Foodlife is an 18,000 sq. ft. food court operation that offers a variety of ethnic cuisines as well as traditional American fare<br />
such as hamburgers and pizza. The unit also has a full-service restaurant within called Mity Nice Grill. Patrons enter foodlife<br />
through two separate entrances, one for the full-service dining area and the other the self-service counters. Each food court<br />
kiosk records customer purchases on a plastic "credit card" and payment is made before exiting at a single cash register<br />
counter. In addition to its own unique concepts, LEYE maintains several joint ventures with others in the industry and some of<br />
its newest and diverse operations have been the result of these ventures. Wildfire, begun as a joint venture concept with<br />
Brinker International, is currently being expanded. Brasserie Jo, its joint endeavor with Everest's chef Jean Joho, features<br />
typical Alsatian foods and customs including its signature beer.<br />
It, too, has been replicated. Another partnership is with Chef Jean-Georges Vongerichten and the Chicago opening of his Thai-<br />
French fusion concept, Vong (which the two closed in August 2001 to reconcept).<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
383
<strong>RISE</strong> COMPANY PROFILE<br />
Melman actively consults as well with several restaurant companies regarding both menu and concept development. Two of<br />
his most visible projects have been with AFC Enterprises and McDonald’s Corp. Another project is ICON LLC, a partnership<br />
venture that focuses on the expansion of historic restaurants. LEYE’s senior partner, Gerard Centioli, serves as president and<br />
chief executive officer; Melman is its chairman. The group’s first joint venture is with Miami’s famed Joe’s Stone Crab owners<br />
and it has brought that operation to Chicago.<br />
The company has some 7,000 items purchased from over 500 vendors and it is centrally controlled. In addition, corporate<br />
offices include a test kitchen for review of new products and development and refinement of menus.<br />
Richard Melman and Jerry Orzoff opened their first restaurant, R.J. Grunt's, in Chicago in 1971. The company incorporated in<br />
1977. In late 2000, the company acquired complete interest in its Wildfire. In addition, it sold joint venture partner Brinker<br />
International LEYE rights to the Big Bowl concept. Its latest concept, the steakhouse Petterino's, opened in 2001 in the<br />
renovated Goodman Theatre in Chicago's downtown.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong> types range from French/Continental and Italian to seafood to Mexican and barbecue; many serve eclectic blend of<br />
unusual sandwiches, soups, entrees and drinks. Wildfire: ranges from wood-oven pizzas to Caesar salads with grilled chicken<br />
to rotisserie prime rib, chicken and pork and wood-fire grilled steaks. <strong>Menu</strong> Prices: $6.95–$20.95. Full liquor service available<br />
in most units. Check Averages: Varies from $6 at foodlife to as much as $50 at Ambria.<br />
Expansion Plans |<br />
Wildfire Steak and Chop House* will be expanded by Lettuce Entertain You Enterprises. A fifth unit is pegged to open in the<br />
Chicago suburb of Schaumburg in late spring. (Food Arts)<br />
<strong>Menu</strong> Development |<br />
Asian-style steamed buns are the specialty at Wow Bao in Chicago. The bao are filled with a variety of fillings ranging from<br />
Thai curry chicken with red peppers, curry paste and coconut sauce to Sichuan Spicy Eggplant with spicy-hot chile sauce.<br />
Other options include Kung Pao chicken, green vegetable, barbecued pork and chicken teriyaki. They can be purchased<br />
individually for $1.19 or in packs of six or 12. Wao Bao is operated by Lettuce Entertain You Enterprises. (Restaurants &<br />
Institutions, 8/15/03, p20, Nation’s Restaurant News, 8/18/03, p34)<br />
Personnel |<br />
Richard Melman, Chairman<br />
Kevin Brown, President<br />
Martha Spezia, Vice President of Purchasing<br />
Sue Salzman, Vice President of Marketing<br />
News & Other |<br />
Lettuce Entertain You Enterprises recently named Kevin Brown chief executive officer, adding the title to that of president.<br />
Company founder and chairman Richard Melman remains very involved in the company, devoting his time to creating and<br />
developing new concepts, consulting and improving existing restaurants. LEYE currently is focusing on expanding some of its<br />
existing concepts, including Wildfire, a steakhouse featuring foods cooked over live fire; Café Ba-Ba-Reeba!, a Spanish<br />
restaurant and tapas bar; Mon Ami Gabi, a French bistro; and Shaw’s Crab House, a seafood operation. Brown said that the<br />
company will open more restaurants in Las Vegas and that it has developed a crepe stand in Minneapolis that it will replicate.<br />
The company was in the midst of negotiations for more Wildfire locations. (NRN 7/7/03 p1)<br />
Lettuce Entertain You Enterprises plans to debut a new Asian-style carryout concept called Wow Bao in August on the street<br />
level of Chicago’s Water Tower Place mall. It will offer steamed buns (known as bao) with fillings such as Thai curry chicken,<br />
Sichuan spicy eggplant and kung pao chicken. (NDNF 7/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
384
<strong>RISE</strong> COMPANY PROFILE<br />
Wow Bao is Lettuce Entertain You Enterprises’ newest concept. Its specialty is savory, Asian-style steamed buns (baos) that<br />
are bigger than bite-sized but smaller than the average sandwich. Varieties include Thai Curry Chicken, Sichuan Spicy Kung<br />
Pao Chicken, Chicken Teriyaki and other flavors. The buns can be bought individually for $1.19 or in packs of six or 12. Also<br />
on the menu will be several salads, broths and Asian-influenced beverages such as fresh-ginger soda and frozen Vietnamese<br />
coffee. The takeout-only concept opened in August in Chicago’s Water Tower Place retail mall, which also houses LEYE’s<br />
foodlife concept. LEYE plans to fully develop Wow Bao before deciding whether to replicate it. (R&I 8/15/03 p20)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
385
Little Caesars<br />
Headquarters<br />
2211 Woodward Ave. Fox Office Centre, Detroit, Michigan 48201 USA<br />
Tel: (313) 983 6000 Fax: (313) 983 6197<br />
www.littlecaesars.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,120,000 1,250,000 1,300,000<br />
Company-owned ($000) 220,000 225,000 250,000<br />
Franchised ($000) 900,000 1,025,000 1,050,000<br />
U.S. Number of Units 2,700 3,065 3,300<br />
Company-owned 425 440 500<br />
Franchised 2,275 2,625 2,800<br />
International Sales ($000) 85,000 90,000 100,000<br />
International Units 260 275 300<br />
Average Sales/Unit ($000) 415 425 499<br />
Concept Positioning |<br />
Little Caesar Enterprises Inc. owns, operates, and franchises pizza stores that are largely carryout only and do business under<br />
the trade name Little Caesars Pizza. In mid-1995, the chain rolled out a home delivery service. Most units are located in strip<br />
shopping centers. They typically average 1,000 sq. ft. and are open for lunch and dinner.<br />
Little Caesars has also begun to focus on expansion into Kmart stores as well as internationally.<br />
The company operates multiple distribution centers for food, paper products and equipment. Blue Line Distributing, a division<br />
since 1972, is the full-service distributor for all units.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: pizza. Also menus Crazy Bread; chicken wings; soft bread sticks garnished with garlic, butter and Parmesan.<br />
<strong>Menu</strong> Prices: $4.49–$15.49.<br />
Personnel |<br />
Michael llitch, Chairman<br />
Rick Muse, Senior Vice President of Operations<br />
Michael Scruggs, Senior Vice President of Operations<br />
Linda Jaworski, Senior Vice President of Marketing<br />
Stewart DeGues, Vice President of Marketing<br />
Joyce Schlachter, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
386
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Little Caesars expects to resume growing the chain over the next five years and to return to some markets that it had<br />
abandoned, such as Denver, Pittsburgh, Dallas, Indianapolis and the Pacific Northwest. In 2002, the company said its samestore<br />
sales increased by 11.1% over the previous year. It attributes the increase to operational improvements, better relations<br />
with franchisees and upgraded ingredients. The chain has been placing a greater emphasis on carryout and streamlining its<br />
menu, and a new certification program for managers is required. After settling a 1999 class action lawsuit revolving around<br />
disputes about an independent franchise organization, pricing of items bought through its distribution system and national<br />
advertising contributions, relations with franchisees have improved. And in late 2001, the chain switched from frozen to fresh<br />
cheese and has improved toppings, sauce and dough quality. This includes a switch to fresh pack sauce. The company<br />
expects to open up to 150 stores in 2003, after no growth in 2000 and just 30 openings in 2002. In addition, the company is<br />
seeking single-unit franchisees, believing its system thrives on such an approach. (PT 5/03 p26)<br />
Kmart offers full Little Caesars Pizza restaurants at about 20% of its 1,512 stores nationwide and 863 offer smaller menus of<br />
Little Caesars pizza and other snacks. (NRN 7/28/03 p88)<br />
Little Ceasars reported same-store sales increased 15.5% for the first half of the year. The company also announced samestore<br />
sales increased by double-digits for the past 22 consecutive quarters. (Nation’s Restaurant News 09/08/03 p4)<br />
CML Pizza’s 14 Little Caesars units each have relationships with public and private schools and daycare centers. On a busy<br />
day, Richmond, VA-based CML’s 14 stores produce 1,200 pies solely for schools. (R&I 11/15/03 p47)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
387
Logan's Roadhouse<br />
Headquarters<br />
305 Hartmann Drive, Lebanon, Tennessee 37088-0787 USA<br />
Tel: (615) 444 5533 Fax: (615) 443 9818<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 255,124 231,250 192,641<br />
Company-owned ($000) 228,124 207,000 174,641<br />
Franchised ($000) 27,000 24,250 18,000<br />
U.S. Number of Units 105 93 82<br />
Company-owned 93 83 74<br />
Franchised 12 10 8<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,961 3,078 2,360<br />
Concept Positioning |<br />
Logan's Roadhouse is a casual-dining chain reflective of today's new breed of roadhouse concepts. Units are open 11 a.m. to<br />
10 p.m. for lunch and dinner. It is designed to have broad appeal as it offers generous portions of popular American foods at<br />
moderate price levels. In addition, its casual setting includes the use of display cooking on gas-fired mesquite grills, oldfashioned<br />
meat counter, peanut-shell laden floors, jukeboxes playing country music and comfortable bar areas.<br />
Current units are all freestanding and located in both new and renovated buildings averaging 7,800 sq. ft. with seating for 292<br />
including 45 in the bar area. All are located in mid-sized markets as the company feels they are less competitive than major<br />
metropolitan centers based on site availability and number of competitive casual-dining restaurants.<br />
The current prototype uses rough-hewn cedar siding with bands of corrugated metal outlined in double-striped red neon. Hand<br />
painted murals depicting scenes of American roadhouses of the 1940s and 1950s also add interior interest. In addition, the<br />
company plans to begin building and opening a new prototype design that management believes will be more operationally<br />
efficient.<br />
Its current growth strategy is concentrating new unit development in Southeast and southern Midwest markets similar to those<br />
already developed. Further, it has a development pact with co-founder Charles McWhorter to open 8–15 franchised<br />
restaurants in the next five years in the Carolinas and Augusta, GA.<br />
Developed with the financial joint venture help of O'Charley's, Inc., the first unit opened in 1991 and was acquired by the<br />
company in 1992. In mid-1995, Logan's completed its initial public offering. In early 1999, CBRL Holdings, Inc., the parent of<br />
Cracker Barrel Old Country Store, completed its acquisition of the company.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
388
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: brown sugar and cinnamon baked sweet potatoes and premise-made yeast rolls. Entrees include steaks,<br />
ribs, mesquite grilled pork chops, fresh seafood and chicken. Also menus hamburgers, salads and sandwiches. Signature<br />
desserts include Key Lime pie, caramel apple cheesecake, mountain berry tart and chocolate pecan pie. Express lunch menu<br />
has specially priced items served in less than 15 minutes. Full liquor service; less than 10% of sales. <strong>Menu</strong> Prices: $4.79–<br />
$17.99. Check Averages: $11.41.<br />
Personnel |<br />
Peter Kehayes, President<br />
Mary Sample, Chief Financial Officer<br />
John Lush, Vice President of Operations<br />
Wayne O'Quinn, Director of Purchasing<br />
Holly Hixon, Director of Marketing<br />
George Odimegwu, Chef<br />
Logan’s Roadhouse Inc. appointed Jeffery S. Campbell vice president of human resources. Previously, Campbell was senior<br />
director of human resources for Bahama Breeze. (NRN Daily NewsFax 12/11/03)<br />
Logan’s Roadhouse hired Steve Anderson as senior director of food and beverage. Previously, Anderson was menu<br />
development chief for Red Lobster. (RestaurantBiz.com 10/10/03)<br />
News & Other |<br />
CBRL Group Inc. reported net income for the fourth-quarter ended August 1 increased 17% to $35.5 million from $30.5 million<br />
a year ago. Revenues increased 6.3% to $580.3 million for the quarter. Same-store sales rose 0.1% at Cracker Barrel and gift<br />
shop sales grew 1.3%. Logan’s Roadhouse reported same-store sales increased by 0.7% for the quarter. (NRN Daily<br />
NewsFax 09/12/03)<br />
Logan’s Roadhouse reported fourth-quarter same-store sales increased 0.7%. (Nation’s Restaurant News 9/22/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
389
Lone Star Steakhouse and Saloon<br />
Headquarters<br />
224 E. Douglas Suite 700, Wichita, Kansas 67202 USA<br />
Tel: (316) 264 8899 Fax: (316) 264 5988<br />
www.lonestarsteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 481,000 464,354 447,935<br />
Company-owned ($000) 475,000 458,620 442,751<br />
Franchised ($000) 6,000 5,734 5,184<br />
U.S. Number of Units 252 254 244<br />
Company-owned 249 251 241<br />
Franchised 3 3 3<br />
International Sales ($000) 24,000 24,907 35,574<br />
International Units 21 25 31<br />
Average Sales/Unit ($000) 1,900 1,908 1,837<br />
Concept Positioning |<br />
Lone Star Steakhouse & Saloon is a chain of full-service, casual dining restaurants open for lunch and dinner seven days a<br />
week. Units have a Texas roadhouse ambiance that includes planked wooden floors, dim lighting, Texas memorabilia and<br />
music, neon beer signs and peanut shell littered floors.<br />
Units are mostly freestanding and average 5,800 sq. ft. and seat 220. A bar area, adjacent to the dining room, is used to<br />
accommodate waiting customers and overflow. Some units also have an outdoor patio area that provides additional seating.<br />
A meat counter, visible from the dining room, enables customers to personally select their own steaks. Portion sizes are also<br />
important to the concept and are "Texas-sized" to go along with the rest of the Texas feeling. The company creates additional<br />
name recognition by selling t-shirts and other items bearing the Lone Star name and logo.<br />
The Lone Star opened in 1989 and the company was incorporated in 1991 as Texas Lone Star, Ltd. In January 1992, it<br />
reorganized as Lone Star Steakhouse & Saloon, Inc. and made its first public offering of 2.5 million shares. Proceeds<br />
(approximately $43.9 million) were used to finance expansion and development of additional restaurants.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Rosita's Filet, 9-oz. bacon-wrapped filet mignon. Also menus 5 other mesquite grilled steaks, ribs, chicken,<br />
shrimp and fish. 80%–85% of dinners are steak entrees. Dinners include salad, bread and butter and choice of baked or sweet<br />
potatoes, steak fries or Texas rice. Lunch includes luncheon steaks, hamburgers, chicken sandwiches, ribs, soups and<br />
saladsAppetizers, including Texas tumbleweed and Amarillo cheese fries, and desserts complete the menu. Full liquor service<br />
available; Alcohol accounts for approximately 11% of net sales. <strong>Menu</strong> Prices: $8.95–$17.95. Check Averages: Lunch—$12.50,<br />
Dinner—$17.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
390
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Lone Star Steakhouse is diversifying its menu beyond its steak focus. Its new menu includes king crab legs, pasta dishes and<br />
fried shrimp, while rotisserie chicken and barbecued beef brisket and pork are in test at several units. (Nation’s Restaurant<br />
News)<br />
Franchise Activity |<br />
Lone Star Steakhouse proposed a plan to acquire the 20-unit Texas Land & Cattle Steakhouse chain from TXC.C. Inc. Terms<br />
of the agreement were not disclosed. (NRN Daily NewsFax 12/12/03)<br />
Personnel |<br />
Jamie Coulter, Chief Executive Officer<br />
T.D. O'Connell, President<br />
Randy Pierce, Chief Financial Officer<br />
Robert Martin, Vice President of Marketing<br />
Lone Star Steakhouse announced that chief operating officer Jeff Bracken would leave the company effective December 31.<br />
Current president T.D. O’Connell will assume the additional duties of chief operating officer. (Restaurant Business Daily News<br />
12/4/03)<br />
News & Other |<br />
Lone Star Steakhouse & Saloon Inc. for the third quarter ended September 9, reported net income declined 55% to $3.7<br />
million compared to $8.2 million for the same quarter a year ago. Same-store sales decreased 1.2% at domestic Lone Star<br />
units but grew 9.6% at Sullivan’s Steakhouse and 17.9% at Del Frisco’s Double Eagle Steak House. (NRN Daily NewsFax<br />
10/1/03)<br />
Lone Star Steakhouse agreed to sell its Australian operations to Robert Lapointe and Tim Smith prior to the end of fiscal 2003.<br />
Terms of the deal were not disclosed. (NRN Daily NewsFax 12/23/03)<br />
Lone Star Steakhouse reported that same-store sales rose 1.9% for fiscal 2003. Included in the figure are increases of .4% at<br />
the company’s namesake units, 6.6% at Sullivan’s Steakhouse and 10.6% at Del Frisco’s Double Eagle Steak Houses. (NRN<br />
Daily NewsFax 1/8/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
391
Long John Silver's<br />
Headquarters<br />
101 Yorkshire Blvd., Lexington, Kentucky 40579 USA<br />
Tel: (859) 543 6000 Fax: (859) 543 6655<br />
www.ljsilvers.com<br />
Ownership: Private<br />
Segment: Limited Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 751,017 754,701 722,977<br />
Company-owned ($000) 490,549 499,330 474,211<br />
Franchised ($000) 260,468 255,371 248,766<br />
U.S. Number of Units 1,238 1,229 1,198<br />
Company-owned 741 742 751<br />
Franchised 497 487 447<br />
International Sales ($000) 10,900 10,982 11,708<br />
International Units 25 25 21<br />
Average Sales/Unit ($000) 607 614 631<br />
Concept Positioning |<br />
Long John Silver’s is the nation's largest quick-service fish and seafood chain. Restaurants generally offer drive-through (in<br />
approximately 900 shops), sit down and carryout service seven days a week. The target market is 25- to 54-year-olds.<br />
Long John Silver’s has completed an extensive drive-through and image-enhancement program in all company stores. The<br />
former "wharfside" exterior and traditional nautical interior motif is replaced with a bright yellow and deep blue color scheme.<br />
Buildings are typically freestanding, with seating for 96.<br />
All entrees and packaged meals are available for takeout. The company has upgraded its kids' meals and premiums in an<br />
effort to attract more families with young children.<br />
The first Long John Silver’s was opened in 1969 by Warren Rosenthal, chairman of original parent Jerrico, Inc. and a pioneer<br />
in the introduction of seafood to the American consumer. In September 1989, the company was acquired by a group of<br />
investors. In mid-1998, the company filed for Chapter 11 and emerged in fall 1999 under an approved acquisition by Yorkshire<br />
Global Restaurants.<br />
Currently, Long John Silver’s is owned by the publicly traded YUM! Brands (formerly TRICON), the parent company of KFC,<br />
Pizza Hut, Taco Bell and A&W Restaurants. The acquisition was completed in May 2002.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: batter-dipped, baked fish, seafood and chicken. Best-seller consists of batter-dipped fish fillets, fries,<br />
hushpuppies and coleslaw. Newest items include a line of flatbread sandwiches. Other menu items include batter-dipped<br />
shrimp, fish, chicken, clams, chicken planks (strips of breast meat), combination platters, popcorn munchers (fish, chicken or<br />
popcorn shrimp), fish, chicken or popcorn shrimp wraps (which come in classic, South of the Border Caesar, cool ranch or<br />
blazin’ Cajun), Grab 2 Go fish and chicken sandwiches, cheese sticks, corn-on-the-cob, salads and cold and hot<br />
beveragesCheck Averages: $4.01<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
392
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Priszm Brandz said that its 250 Pizza Hut outlets across Canada would buy only 100% Canadian beef to help support the<br />
country’s ailing beef industry. Its Pizza Hut restaurants buy approximately 3 million pounds of beef products annually. Priszm<br />
franchises more than 760 KFC, Taco Bell, Long John Silver’s and Pizza Hut outlets. In making the 100% Canadian beef<br />
pledge, at least temporarily, it is following the lead of the Canadian arms of McDonald’s and Dairy Queen. (NRN 8/25/03 p56)<br />
Personnel |<br />
Steve Davis, President<br />
Rick Jenkins, Director of Purchasing<br />
AFC Enterprises named Nana Mensah chief operating officer for Church’s Chicken. Previously, Mensah has served with Long<br />
John Silver’s and PepsiCo. (Franchise Times 9/03 p52)<br />
News & Other |<br />
Priszm Brandz will open a Long John Silver’s in an existing Taco Bell location in Peterborough, Ont. It is the first of eight cobranded<br />
stores that Priszm plans to open. The opening marks the seafood chain’s first Canadian store. Priszm Brands<br />
operates more than 760 franchised KFC, Taco Bell and Pizza Hut units, making it Canada’s largest restaurant operator. (NRN<br />
2/10/03 p35)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
393
Longhorn Steakhouse<br />
Headquarters<br />
8215 Roswell Rd., Atlanta, Georgia 30350 USA<br />
Tel: (770) 399 9595 Fax: (770) 399 7796<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 416,900 366,500 333,820<br />
Company-owned ($000) 416,900 366,500 327,820<br />
Franchised ($000) - - 6,000<br />
U.S. Number of Units 170 154 138<br />
Company-owned 170 154 135<br />
Franchised - - 3<br />
International Sales ($000) 6,000 5,900 -<br />
International Units 3 3 -<br />
Average Sales/Unit ($000) 2,568 2,488 2,428<br />
Concept Positioning |<br />
Longhorn Steakhouse is a full-service, casual-dining restaurant that serves both lunch and dinner. Units are decorated with a<br />
combination of Cowboy and old-west memorabilia that recreate the atmosphere of a uniquely western-style steakhouse.<br />
Units are either freestanding or located in shopping centers. Originally, averaging 4,500 sq. ft. and seating 120, its current<br />
prototype is approximately 5,100 sq. ft. and seats 198. In addition, the new prototype has an expanded kitchen design to<br />
accommodate equipment needed to broaden its menu. Further, the chain renovated its older units, making both interior and<br />
exterior upgrades. Longhorn considers the program to be ongoing.<br />
Longhorn specializes in freshly cut, choice beef that is cooked on a special flat top griddle to sear in the natural juices and<br />
flavor. Steaks are served topped with a lemon butter sauce. The company ages its beef in a special proprietary process.<br />
The chain was founded in 1981 with the opening of the first Longhorn unit. George McKerrow, Jr. was one of the partners in<br />
the deal. However, he lost his original partner's financial support midway through construction of the first unit. His father,<br />
George McKerrow, Sr., a business executive, took over the investment and incorporated the business in December 1982. In<br />
early 1997, the corporate name was changed to Rare Hospitality International, Inc. to better reflect the company’s diversity of<br />
concepts.<br />
Current management includes Philip J. Hickey, Jr., Chairman and chief executive officer, and Eugene I. Lee, President, Rare<br />
Hospitality.<br />
<strong>Menu</strong> Positioning |<br />
Features grilled steaks and salmon filet; best sellers are 7- and 9-oz. beef filets. Red meats account for 75%–85% of sales.<br />
The menu also features Prime rib, shrimp, chicken, burgers and sandwiches, ribs and pork chops and specialty dinner salads<br />
Full liquor service with beverages accounting for 15% of sales. <strong>Menu</strong> Prices: $6.99–$19.99. Check Averages: $10–$17.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
394
Personnel |<br />
Philip Hickey Jr., Chief Executive Officer<br />
Eugene Lee, President<br />
Jeff Darby, Director of Purchasing<br />
Harry Day, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Longhorn Steakhouse for the third quarter ended September 28, reported same-store sales increased 5.2%. (NRN Daily<br />
NewsFax 10/27/03)<br />
Wait times were down 27% at 200 outlets of 16 casual-dining chains on Friday, October 24 compared to a comparable<br />
evening last year. The survey was conducted by Mark Kalinowski of Citigroup Smith Barney. The average wait for a party of<br />
four between 6 p.m. and 9 p.m. was 18.3 minutes, down approximately seven minutes from last year. Outback Steakhouse<br />
and LongHorn Steakhouse posted substantial increases from last year, with an average wait of 35 minutes. (NDNF 11/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
395
Luby's<br />
Headquarters<br />
2211 N.E. Loop 410 P. O. Box 3369, San Antonio, Texas 78217 USA<br />
Tel: (210) 654 9000 Fax: (210) 871 7867<br />
www.lubys.com<br />
Ownership: Public<br />
Segment: Limited Service Cafeteria Buffet<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 391,703 454,994 493,383<br />
Company-owned ($000) 391,703 454,994 493,383<br />
Franchised ($000) - - -<br />
U.S. Number of Units 194 202 225<br />
Company-owned 194 202 225<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,019 2,252 2,192<br />
Concept Positioning |<br />
Luby's, Inc., operates an all company-owned chain of cafeterias. Most units serve lunch and dinner seven days a week, 364<br />
days a year. It caters to shoppers, store and office personnel at lunch and families at dinner. To further attract families, it has<br />
expanded its children’s menu.<br />
Food is served buffet style, with floor attendants available to help with trays and to bring free beverage refills to the table.<br />
The company emphasizes freshness and quality, as evidenced in its "Good food from good people" motto. A large percentage<br />
of its stores have separate food-to-go sections. In addition, some 70 units have drive-through windows. Plus, the company<br />
continues to add both the food-to-go and drive-through elements. Takeout currently accounts for 12.86% of sales.<br />
Most units are located convenient to shopping and business developments as well as residential areas. They average 9,000–<br />
11,000 sq. ft. and seat an average of 300 persons. A smaller prototype of 6,000–8,000 sq. ft., with seating for 170–214, seems<br />
to be the design the company will plan future expansions with.<br />
<strong>Menu</strong> items are prepared in small quantities throughout each day, including baked goods, cornbread, sweet rolls, pies and<br />
cakes, gravies and salad dressings. Items such as fried fish and fried okra are hand breaded. Each unit has its own butcher to<br />
prepare cuts of meat to its specifications.<br />
The company was founded by Robert M. Luby and incorporated in 1947. It became a public company in 1973. Two other<br />
cafeterias operating in Texas use the name Luby's, but are unaffiliated with the company. In September 1996, it completed the<br />
acquisition of 22 Wyatt Cafeteria units from that chain's parent Triangle FoodService Corp. In early 1999, the company<br />
changed its name from Luby’s Cafeterias, Inc. to Luby’s Inc. to reflect its vision of broader opportunity within the foodservice<br />
industry.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
396
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Offers choice of 15–20 salads, 12–14 entrees, 12–14 vegetables and 18–20 desserts. <strong>Menu</strong>s and recipes adjusted to suit<br />
local tastes. Check Averages: approximately $5.<br />
Expansion Plans |<br />
Luby’s is closing about 50 of its 190 cafeterias. This includes 30 primarily company-owned locations that were slated for<br />
closure by April 5. Of its approximately 140 remaining restaurants, most are in Texas. The new business plan will allow Luby’s<br />
to focus on its core Texas markets, according to Chris Pappas, Luby’s president and chief executive. As of January 31, Luby’s<br />
was in default on $80 million in debt. It intends to sell restaurant locations as well as about 20 other excess land sites and<br />
restaurant locations closed prior to the adoption of the new business plan. Luby’s said that its lenders had not announced that<br />
they plan to take action on the default. (NRN 4/7/03 p3)<br />
Promotion Plans |<br />
Luby’s introduced their new tag, “Luby’s: Tastes Like Texas, Feels Like Home,” in TV and radio spots for the general and<br />
Hispanic markets. The Spanish-language TV spots feature Tejano music star Jay Perez. (NRN Daily NewsFax 9/24/03)<br />
Personnel |<br />
Gasper Mir, Chairman<br />
Christopher Pappas, President<br />
Ernest Pekmezaris, Chief Financial Officer<br />
Laurie Shultz, Vice President of Marketing<br />
News & Other |<br />
Luby’s is experimenting with three new concepts. Bob Luby’s Seafood Grill, poised to compete with casual-dining restaurants,<br />
is characterized by the company as offering a “semi a la carte style.” Its offerings—many with Cajun/Creole flavors—range<br />
from $5 to $12 and include Fried Crawfish Po’ Boys, $6.45; Grilled Rainbow Trout with rice and cole slaw, $9.75; and house<br />
specials of Crawfish Étouffée, $6.45; and Shrimp Fettuccine Alfredo, $9.95. Also recently introduced is Luby’s Steak Buffet,<br />
offering all you can eat for no more than $8. Many of its recipes are the same as those used for the cafeteria with the<br />
exception of grilled and smoked meats such as barbecue beef brisket and whole smoked chickens that are carved. The meats<br />
and other foods are served from scatter bars that also offer bread and desserts, salads, vegetables and starches and taco<br />
ingredients. Lunch costs $6.99 and dinner, $7.99. In addition, 45 traditional Luby’s cafeterias already have been converted to<br />
Luby’s All-You-Can-Eat Buffet units. Two Luby’s have been converted into the seafood concept and one into the steak<br />
concept. For 2003, up to three more steak or seafood buffets are slated to open. Luby’s, which has been owned in part since<br />
2001 by the highly respected restaurateur brothers Harris and Chris Pappas, lost $9.7 million in 2002 and recently announced<br />
that it was closing 50 of its 190 cafeterias. Of its approximately 140 remaining units, most are in Texas. (CL 4/03 p38)<br />
Luby’s said it defaulted on $10 million in subordinated debt held by its president and chief executive Chris Pappas and chief<br />
operating officer Harris Pappas. This results from the company’s ongoing default under its senior bank debt. The default<br />
automatically suspended interest payments on the subordinated debt. The Pappas brothers, widely respected restaurateurs,<br />
loaned Luby’s the $10 million in June 2001. They say that they remain dedicated to implementing their two-year business plan<br />
for the cafeteria operator but that they felt that since an arrangement has not been worked out yet with the senior lenders, they<br />
had to protect their rights. The default on their debt gives them the right to accelerate its maturity, which was due in 2011. But<br />
no subordinated debt can be paid off until Luby’s retires its bank debt. (NRN 6/2/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
397
Maggiano's<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
www.maggianos.com<br />
Ownership: Public<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 183,438 139,688 120,177<br />
Company-owned ($000) 183,438 139,688 120,177<br />
Franchised ($000) - - -<br />
U.S. Number of Units 23 17 13<br />
Company-owned 23 17 13<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 9,200 9,200 9,244<br />
Concept Positioning |<br />
Maggiano’s Little Italy is a chain of full-service, casual-dining Italian restaurants that specialize in family-style meals. Portions<br />
are large and served on platters, not plates. Food and non-alcoholic beverage sales account for almost 79% of revenues,<br />
alcoholic beverages, the remaining 21%.<br />
Units are open seven days a week, serving lunch from 11:30 a.m.–2 p.m. weekdays and dinner from 5–10 p.m Sunday<br />
through Thursday. Kitchens are open until 11 p.m. on Friday and Saturday.<br />
Units are located in downtown areas and are either freestanding or built adjacent to Brinker’s Corner Bakery restaurants. (In<br />
fact, in the original unit in Chicago’s River North area, patrons walk into and through the Corner Bakery to reach Maggiano’s<br />
main entry.) Units are 14,000–18,000 sq. ft., with seating for 500–725 guests. Each carries a theme that recreates a pre-war<br />
New York Italian dinner house with white linens atop red-checked tablecloths, dark woods and family photographs hung on<br />
walls.<br />
Branded merchandise such as marinara sauce and salad dressing is also sold. In addition, most have extensive banquet<br />
facilities.<br />
In mid-1995, Brinker International acquired Maggiano’s Little Italy from Lettuce Entertain You Enterprises in a stock deal that<br />
included the acquisition of LEYE’s Corner Bakery concept.<br />
<strong>Menu</strong> Positioning |<br />
Extensive selection of Italian specialties including spaghetti marinara, eggplant Parmesan, lasagna, veal scaloppini and<br />
mostaccioli. Southern Italian appetizers, soups, salads, potatoes and vegetables are all served a la carte. Its lunch menu<br />
includes smaller portions of main entrees and selection of gourmet sandwiches. Full liquor service, approximately 25% of<br />
sales. <strong>Menu</strong> Prices: $7.95–$29.95. Check Averages: $25.29.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
398
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Maggiano’s Little Italy is testing a different salad each week at its Tysons Corner, VA, and Chevy Chase, MD, restaurants<br />
through August. Varieties include: Spinach and Warm Goat Cheese Salad ($8.95); Rustic Chicken Salad ($10.95); Tomato<br />
and Green Bean Salad ($7.95); and Calamari Siciliano Salad ($11.95). (NRN Daily NewsFax, 7/11/03)<br />
Technology |<br />
Fishbowl, an e-mail marketing services firm, assists its clients in sending more than 2 million e-mail messages a month on<br />
behalf of about 60 restaurant chains, including Buca di Beppo, Johnny Carino’s Country Italian, Maggiano’s Little Italy and<br />
Texas Roadhouse. The company also specializes in database management; creation of e-mail content; survey planning<br />
strategies; and updates of e-mail materials to support quarterly marketing goals. Fishbowl clients pay a $7,500 set-up fee and<br />
from $100–$300 per restaurant per month, depending on the database size. Fishbowl client Red Robin Gourmet Burgers is<br />
rolling out a marketing program using e-mail to build brand awareness and guest loyalty. The 198-unit chain decided on this<br />
strategy after successfully testing a guest loyalty program created by Fishbowl. In the eight-restaurant pilot, the company said<br />
it received measurable results that e-mail marketing works. (NRN 5/19/03 p174)<br />
Personnel |<br />
Mark Tormey, President<br />
Tammy Wallace, Chief Financial Officer<br />
Jonathan Fox, Senior Vice President of Operations<br />
Bob Fitzgerald, Director of Purchasing<br />
News & Other |<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Consumer Reports’ annual survey of readers found that 69% were completely or very satisfied with their dining experiences at<br />
the 88 largest U.S. chain restaurants. The survey’s 71,000 responses represented nearly 166,000 meals eaten between April<br />
2001 and April 2002. For a chain to be included in the survey results, it had to be mentioned in at least 350 responses. New on<br />
this year’s list were J. Alexander’s; Maggiano’s Little Italy; Azteca Mexican; Hops Restaurant, Bar & Brewery; McCormick &<br />
Schmick’s; and P.F. Chang’s China Bistro. Capturing the top ranking in seven of the survey’s eight ratings categories was First<br />
Watch, a Sarasota, FL-based chain of 44 daytime-only restaurants. (NRN 6/30/03 p38)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
399
<strong>RISE</strong> COMPANY PROFILE<br />
Households with annual incomes exceeding $200,000 are 86% more likely to include wine drinkers than the average American<br />
household, according to Mediamark Research Inc., New York, NY. Of those in the highest income bracket, 52% said they<br />
drink wine compared with 28% of those earning between $50,000 and $74,999 and just 15% of Americans with household<br />
incomes of less than $25,000. (AD 6/03 p8)<br />
Brinker International reported a 3% increase in same-store sales for the four weeks ended August 27. The rise includes<br />
increases of 3.5% at Chili's Bar & Grill, 2.9% at Romano's Macaroni Grill, 2.7% at On the Border Mexican Grill & Cantina and<br />
0.8% at Maggiano's Little Italy. (NRN Daily NewsFax 9/5/03)<br />
Maggiano’s Little Italy reported same-store sales increased 0.8% in August. (Nation’s Restaurant News 9/15/03 p11)<br />
Maggiano’s for the first quarter ended September 24, reported same-store sales increased 2.4%. (NRN Daily NewsFax<br />
10/22/03)<br />
Maggiano’s Little Italy for the five weeks ended October 29, reported same-store sales increased 2.1%. (NRN Daily NewsFax<br />
11/7/03)<br />
Maggiano's for the 13-week first quarter ended September 24, reported same-store sales increased 2.4%. (Nation’s<br />
Restaurant News 11/3/03 p12)<br />
Brinker International recently hired a firm to develop a defined music style for each of its chains. The audio/visual systems<br />
company considered each chain’s distinct demographics, ambience and pace of dining when developing the customized<br />
music menus. Maggiano’s Little Italy, Chili’s Grill & Bar and On the Border Mexican Grill & Cantina each have music menus<br />
that include hundreds of singers and musical groups. Each unit downloads preset music through Brinker’s intranet on a regular<br />
basis and there is no need to change CDs. Separately, the Internal Revenue Service alleges that Brinker’s tip-reporting<br />
procedures don’t meet the requirements of a 1996 agreement, according to an SEC filing. The 1,400-unit company’s<br />
agreement with the IRS included requirements that it implement tip-reporting educational programs for its hourly restaurant<br />
employees and establish tip-reporting procedures. Brinker said it believes that it has complied with the agreement and notes<br />
that it is in discussions with the IRS but said it could not estimate if the resolution of the dispute would have any financial<br />
impact. (R&I 11/15/03 p19; NRN 11/24/03 p80)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
400
Max & Erma's<br />
Headquarters<br />
4849 Evanswood Dr., Columbus, Ohio 43229 USA<br />
Tel: (614) 431 5800 Fax: (614) 431 4100<br />
www.maxandermas.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 170,991 154,088 131,165<br />
Company-owned ($000) 151,991 141,088 124,165<br />
Franchised ($000) 19,000 13,000 7,000<br />
U.S. Number of Units 81 70 61<br />
Company-owned 67 61 56<br />
Franchised 14 9 5<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,369 2,350 2,217<br />
Concept Positioning |<br />
Max & Erma's–Neighborhood Gathering Place restaurants cater to a primary customer base of families and young<br />
professionals between the ages of 21 and 40. Restaurants are open from 11:00 a.m. to midnight for lunch and dinner. All food<br />
is prepared fresh daily at the restaurant.<br />
Units are mostly freestanding and average 6,000 sp. ft. and seat 160. A new prototype is approximately 5,500–6,800 sq. ft.<br />
with seating for 175–210. Décor includes a combination of light and dark brick, creating a cozy atmosphere accented by<br />
antique artifacts and local paraphernalia, ranging in style from local sports team gear to murals.<br />
Barry Zach’s bought the original Max & Erma's in Columbus in 1972 and developed the concept into a chain. Max & Erma's<br />
Restaurants, Inc., was incorporated in July 1982. The company's management arm operates under the trade name, Investors<br />
Spectrum, Inc., and receives a management fee based on a percentage of each restaurant's gross revenues.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: gourmet hamburgers; accounts for some 33% of sales. Also large specialty sandwiches, pastas, steak, daily<br />
fresh fish entrees, grilled gourmet chicken sandwiches and regional American dishes. Newest items Jim Beam Ribeye,<br />
Ultimate Seafood Pasta, Low Fat Black Bean Roll Up and Low Fat Tijuana Tortilla Wrap; Desserts include sundae bar and<br />
variety of alcoholic dessert coffees. Appetizers include potato skins, baked Brie, nachos, quiche, chicken wings, guacamole<br />
and onion and gazpacho soups. Full liquor service; alcohol accounts for 11% of net sales. Check Averages: $9.96–$10.72.<br />
Lunch accounts for 39% of sales; dinner accounts for 61% of sales.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
401
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Asian noodle bowls are appearing on a wide range of menus. The bowls feature several different components in one dish,<br />
combining protein, sauce, starch and vegetables. As an added bonus, preparation tends to be relatively fast and easy. As an<br />
ever-exp anding number of chefs experiment with bowls, traditional Asian operators such as Hibachi-San are looking to make<br />
their own bowl offerings more interesting by focusing on authentic Asian flavors. The chain’s most popular dish is<br />
chicken/teriyaki bowls served with steamed broccoli, cabbage, carrots, zucchini and fresh-grilled chicken, all coated in teriyaki<br />
sauce. Other offerings range from shrimp tempura to Hawaiian chicken and vegetarian. The chain is currently looking to<br />
develop more traditional Asian-flavored bowls such as sukiyaki to enhance its authentic image; it is also developing dishes<br />
with a Japanese curry sauce that is a bit milder than Indian curry. Even concepts not specifically devoted to Asian cuisine are<br />
experimenting with bowls. Legal Sea Foods recently supplemented its seafood-focused menu with a Soba Noodle Vegetable<br />
Broth. The blend of whole vegetables, vegetable broth, soba noodles, ginger, spices and fresh herbs is receiving an<br />
enthusiastic response from more adventurous diners. Other examples of non-Asian chains launching Asian-inspired bowls<br />
include: ■ Pacific Noodle Bowl—shrimp, scallops and skinny noodles tossed with whole-roasted garlic and fresh watercress in<br />
a light lemon-butter sauce, Bennigan’s ■ Rice Noodles Tossed in Tamarind Sauce—with green onions, garlic, chilies, tofu, egg<br />
and crushed peanuts; garnished with shrimp or chicken, The Cheesecake Factory ■ Hula Bowl—greens with chargrilled<br />
chicken breast, pineapple, Mandarin oranges, rice noodles, carrots and tomatoes, Max & Erma’s ■ Bangkok Chicken Bowl—<br />
seasoned chicken tossed with quick-seared fresh vegetables and udon noodles in garlic-soy-ginger sauce, Rock Bottom<br />
Brewery. (Chef)<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Personnel |<br />
Todd Barnum, Chairman<br />
William Niegsch, Chief Financial Officer<br />
Jim Howenstein, Vice President of Operations<br />
Bonnie Brannigan, Vice President of Marketing<br />
Gail Venrick, Director of Purchasing<br />
Kelley Stinehelfer, Director of Marketing<br />
Bob Davis, <strong>Menu</strong> Development/R&D<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
402
Max & Erma’s named Jim Howenstein vice president of operations. (NRN Daily NewsFax 10/23/03)<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Max & Erma’s chief operating officer and board member Mark Emerson will retire effective December 31. Emerson will be<br />
employed as a consultant through 2004. (NRN Daily NewsFax 10/23/03)<br />
Max & Erma’s Restaurants promoted Jim Howenstein to vice president of operations. The chain named Rob Lindeman senior<br />
vice president of development. (NRN Daily NewsFax 11/26/03)<br />
News & Other |<br />
Max & Erma's announced net income for the third quarter ended August 3 fell 30% compared to the same quarter last year to<br />
$619,840. Revenues were $39.6 million, an 11% increase. Same-store sales also grew by 1.2%. (NRN Daily NewsFax 9/5/03)<br />
Max & Erma’s Restaurants Inc. reported for the third quarter ended August 3, net income fell to $619,840 from $881,386<br />
compared to the same quarter a year ago. Revenues increased 1.2% to $39.6 million. (Nation’s Restaurant News 9/15/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
403
Mazzio's Pizza<br />
Headquarters<br />
4441 S. 72 East Ave., Tulsa, Oklahoma 74145-4692 USA<br />
Tel: (918) 641 1248 Fax: (918) 641 1236<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 132,704 133,404 153,187<br />
Company-owned ($000) 59,602 70,124 73,567<br />
Franchised ($000) 73,102 63,280 79,620<br />
U.S. Number of Units 193 202 231<br />
Company-owned 69 77 95<br />
Franchised 124 125 136<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 687 660 774<br />
Concept Positioning |<br />
Mazzio's Corp. operates two pizza chains, each targeted toward a different segment of the market. Mazzio's Pizza is a selfservice<br />
concept aimed at a somewhat wider market in the 15–50 age group. Mazzio's Pizza Delivery units specialize in fullmenu<br />
delivery service to a clientele of young singles and two-income households in the 18–34 age group. It also operates<br />
Zio’s Italian Kitchen, a full-service casual-dining operation.<br />
Mazzio's restaurants are freestanding or in-line with other stores. The average size is 3,000 sq. ft., with seating for 100<br />
patrons. Decor is upscale art deco, highlighted by neon signs and plants. As part of its operational strategy, the company has<br />
developed plans to reduce the entry cost of this concept as well as co-brand it with other fast-food merchandisers.<br />
Ken Selby, a former physical science teacher, founded the company under the name Ken's Pizza in Tulsa in 1961. Five years<br />
later, he sold his first franchise. The Mazzio name first appeared in 1979. Its company-owned Zio’s concept debuted in Tulsa<br />
in 1994.<br />
<strong>Menu</strong> Positioning |<br />
Signature original crust pizzas from scratch. Also appetizers, sandwiches, salad bars and pasta dishes. Takeout: 45% of<br />
sales. <strong>Menu</strong> Prices: $2.15–$15.00.<br />
News & Other |<br />
The Tulsa Airport Authority awarded Anton Airfood a 10-year, $60 million contract. Anton will operate nine restaurants that are<br />
part of an airport expansion project. Among the brands that it plans to include are T.G.I. Friday’s, Mazzio’s and Camille’s<br />
Sidewalk Café and the local restaurants Mission Cantina and Goldie’s Patio Grill. Several Anton concepts also will be added.<br />
(NDNF 9/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
404
McAlister's Deli<br />
Headquarters<br />
731 S. Pear Orchard Rd. Suite 51, Ridgeland, Mississippi 39157 USA<br />
Tel: (601) 952 1100 Fax: (601) 957 0964<br />
www.mcalistersdeli.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 99,906 79,839 60,698<br />
Company-owned ($000) 18,975 15,314 12,725<br />
Franchised ($000) 80,931 64,525 47,973<br />
U.S. Number of Units 101 81 63<br />
Company-owned 18 14 10<br />
Franchised 83 67 53<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,175 1,138 1,272<br />
Concept Positioning |<br />
McAlister’s Deli is a limited service deli sandwich shop known for its efficient organization and quick response. Ingredients are<br />
pre-cooked and are prepared for individual orders. The result is a fast, customized dining experience.<br />
Units are either freestanding or endcaps and feature the McAlister Tartan, a plaid that covers the awnings. They range in size<br />
from 2,800 to 3,800 sq. ft.<br />
The company was founded by Don Newcomb in Jackson, MS, in 1989. Soon the restaurant flourished, and in 1998, an<br />
investor’s group led by Mike Stack and Phil Friedman acquired it. In the first 10 years of its existence, McAlister’s had grown to<br />
a 47-site company. Expansion remains a key focus, as the company expects to exceed the 100-unit mark by 2004.<br />
<strong>Menu</strong> Positioning |<br />
The deli features servers who bring food to the tables after it is ordered at the front counter. Customers can sit anywhere, and<br />
the décor and event the point-of-purchase signs are designed to create a consistent and casual image. McAlister’s also offers<br />
32-ounce drinks, free refills and no tipping.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
405
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
News & Other |<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
406
McCormick & Schmick's<br />
Headquarters<br />
720 S.W. Washington St. Suite 550, Portland, Oregon 97205 USA<br />
Tel: (503) 226 3440 Fax: (503) 220 1861<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 180,000 178,123 162,351<br />
Company-owned ($000) 180,000 178,123 162,351<br />
Franchised ($000) - - -<br />
U.S. Number of Units 35 35 32<br />
Company-owned 35 35 32<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,400 5,400 5,073<br />
Concept Positioning |<br />
McCormick & Schmick’s is a chain of restaurants that specialize in serving fresh seafood. They operate under several names<br />
including McCormick & Schmick’s Seafood Restaurants, McCormick’s Fish House, M&S Grill, McCormick & Kuleto’s,<br />
Sprenger’s Fresh Fish Grotto, Jake’s Famous Crawfish and Jake’s Grill. The company also operates the Heathman Hotel<br />
Restaurant. <strong>Menu</strong>s are changed daily, based on the availability of high-quality seafood.<br />
Its unit designs vary according to location and range in size from approximately 6,000–14,000 sq.ft., with seating for 200–350<br />
patrons, although its average size is 8,500 sq. ft. Some units also have 40–60 additional seats in a patio area. Almost half are<br />
located in historical buildings that are part of the National Register of Historic Places. Interiors include the use of rich woods,<br />
stained glass, candles and brass. Others are located in various settings including retail, office buildings, high tourist traffic<br />
areas or street-level portions of condominium complexes. A full-service bar accounted for almost one-third of sales in its last<br />
fiscal year.<br />
McCormick & Schmick’s was founded in 1972 by William P. McCormick and Douglas L. Schmick, current chairman and<br />
president, respectively. In March 1997, Avado completed its acquisition of the company for some $53 million in cash and<br />
stock, but that followed with an announcement of its sale to Bruckmann, Rosser, Sherrill & Co. LLC in July 2001.<br />
<strong>Menu</strong> Positioning |<br />
Offers 85 fresh-prepared items including more than 30 different seafood species. Seafood core based on seasonality to<br />
include lobster, salmon, sturgeon, oysters and crab; others change daily. Specialties include entrees such as Oregon Petrale<br />
Sole grilled with Parmesan coating then served with lemon caper beurre blanc, Washington Sturgeon broiled with orange<br />
rhubarb vinaigrette, and Halibut oven roasted with crab meat, bay shrimp and brie. Beef, poultry, salads and pastas also<br />
available. Full liquor service available. Entree Prices: $5–$14 for lunch and $8–$25 for dinner.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
407
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Side dishes are typically not as active a category with regard to menu development as opposed to appetizers and others.<br />
Nonetheless, these offerings offer ample opportunity to appeal to guests with unique complements to entrees that might offer<br />
introduction to an unfamiliar food or ingredient. A number of operators have recognized the opportunity provided with side<br />
dishes and revamped their offerings. Upscale examples include Roasted Peanut Coleslaw at Bandera, Wild Mushroom<br />
Ragout at Gordon Biersch and Rock Shrimp Hash at McCormick & Schmick’s. (Chef Magazine)<br />
Bar menus are often designed to save consumers time while offerings operators an opportunity to capture additional sales in<br />
off-peak and crowded hours. Chevys has made its entire menu available at the bar in a move to cut service time and notes<br />
that bar patrons tend to order equally from the appetizer and entrée sections. Proving most popular for bar service are its<br />
Mesquite Grilled Fajitas and the Fresh Mex Sampler, which combines spicy wings, tamales, chicken nachos and quesadillas.<br />
Kimpton Group has also recognized the appeal of bar menus and is now utilizing lounge menus of about 10 items in several of<br />
its newer hotels, rather than offering a more complete restaurant menu. The menus are often themed to a specific concept.<br />
Helix in Washington, DC, features retro-American foods such as Spicy Corn Dogs with Fairground Mustard Sauce, while<br />
Topaz, also in Washington, DC, emphasizes Asian fare such as Pork and Cabbage Spring Rolls with Sweet Chili Sauce and a<br />
Stir Fry of Scallops with Gingered Grits. Elsewhere, the McCormick & Schmick’s in Los Angeles reconfigured its bar menu to<br />
boost Happy Hour sales. It now serves a collection of $1.95 appetizers from 4p.m. to 7 p.m. Offerings are designed to<br />
introduce diners to prime seafood varieties, including Alaska halibut prepared on skewers and served as fish and chips and<br />
Chignik salmon, which has been prepared on skewers and as ceviche. The menu proved so popular, the restaurant ultimately<br />
decided to extend service, offering it again from 9 p.m. to midnight, essentially creating a second Happy Hour period. Other<br />
chains have also gotten into the act of bar service. Examples include: ■ Ultimate Fondue—bread bowl filled with crab meat,<br />
crawfish, shrimp and Cheddar cheese, Red Lobster ■ Blackened Chicken with Avocado Quesadillas, Dave & Buster’s.<br />
(Restaurant Business)<br />
International Activities |<br />
McCormick & Schmick’s planned to open its first international location in April in Tokyo. It will be run by Maruha Restaurant<br />
Systems Co. Ltd. The upscale seafood chain currently has 40 units. (NDNF 3/19/02)<br />
Personnel |<br />
Douglas Schmick, President<br />
Jerry Kelso, Chief Financial Officer<br />
Bill King, Director of Purchasing<br />
Gregg Leblanc, Director of Marketing<br />
News & Other |<br />
McCormick & Schmick’s has pulled out of a deal with Anton Airfood to open a unit at Portland International Airport in Oregon.<br />
The company said that it has several units in the planning stages and grew concerned that it wouldn’t have the administrative<br />
personnel to handle the project, according to the contract firm. Anton is discussing possible restaurant deals for the airport with<br />
other local seafood restaurants. (NRN 3/10/02 p34)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
408
<strong>RISE</strong> COMPANY PROFILE<br />
Consumer Reports’ annual survey of readers found that 69% were completely or very satisfied with their dining experiences at<br />
the 88 largest U.S. chain restaurants. The survey’s 71,000 responses represented nearly 166,000 meals eaten between April<br />
2001 and April 2002. For a chain to be included in the survey results, it had to be mentioned in at least 350 responses. New on<br />
this year’s list were J. Alexander’s; Maggiano’s Little Italy; Azteca Mexican; Hops Restaurant, Bar & Brewery; McCormick &<br />
Schmick’s; and P.F. Chang’s China Bistro. Capturing the top ranking in seven of the survey’s eight ratings categories was First<br />
Watch, a Sarasota, FL-based chain of 44 daytime-only restaurants. (NRN 6/30/03 p38)<br />
Households with annual incomes exceeding $200,000 are 86% more likely to include wine drinkers than the average American<br />
household, according to Mediamark Research Inc., New York, NY. Of those in the highest income bracket, 52% said they<br />
drink wine compared with 28% of those earning between $50,000 and $74,999 and just 15% of Americans with household<br />
incomes of less than $25,000. (AD 6/03 p8)<br />
McCormick & Schmick Restaurant Group will open its second M&S Grill in September in Baltimore’s Inner Harbor in the<br />
vacant Planet Hollywood space. Seating 210 inside and 50 on an outdoor patio, it will offer steak, fish and comfort foods.<br />
Entrees will range from $9–$29. McCormick & Schmick also runs an M&S Grill in Washington, DC, and owns Jake’s Grill in<br />
Portland, OR. (SBR 7/03 p10)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
409
McDonald's<br />
Headquarters<br />
2915 Jorie Blvd. Campus Office Building, Oak Brook, Illinois 60523 USA<br />
Tel: (630) 623 3000 Fax: (630) 523 8843<br />
www.mcdonalds.com<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 20,305,700 20,051,500 19,572,800<br />
Company-owned ($000) 3,172,000 3,138,900 3,063,800<br />
Franchised ($000) 17,133,700 16,912,600 16,509,000<br />
U.S. Number of Units 13,491 13,099 12,804<br />
Company-owned 2,102 1,871 1,912<br />
Franchised 11,389 11,228 10,892<br />
International Sales ($000) 20,151,900 19,601,800 20,003,200<br />
International Units 16,534 15,919 14,895<br />
Average Sales/Unit ($000) 1,628 1,650 1,602<br />
Concept Positioning |<br />
McDonald’s is the world's largest chain of fast-food restaurants, serving more than 38 million customers daily. Most of them<br />
offer drive-through, sit-down, and carryout service for breakfast, lunch, and dinner. A few are open 24 hours a day. About twothirds<br />
of its system is franchised to some 4,500 franchisees throughout the world. Some 80% of McDonald's restaurants, and<br />
more than 80% of sales, are in eight countries: Australia, Brazil, Canada, France, Germany, Japan, the U.K. and the U.S.<br />
Most restaurants are freestanding. Others are located in shopping malls and nontraditional sites such as hospitals, college<br />
campuses, airport terminals, interstate highways, office buildings, military installations, and museums and in Wal-Marts in the<br />
U.S., Canada, Mexico and Puerto Rico.<br />
Internationally, its Moscow unit in Pushkin Square is one of the busiest in its system, serving an average of 40,000 customers<br />
a day. A unit in La Paz, Bolivia, is the highest altitude unit in the world at 11,000 feet above sea level. (It required modifications<br />
to many McDonald’s cooking procedures to operate.) The northernmost unit is in Rovaniemi, Finland, which is the recognized<br />
home of Santa Claus.<br />
Numerous decor packages are also used throughout the system but tied together through use of a single identity link: the<br />
golden arches signage. Its Series 2000 prototype, for example, is half the size of its traditional units and requires a smaller<br />
land parcel yet produces nearly the same unit volume as its other designs. It also reduces both construction and site costs.<br />
Many feature an indoor Ronald's Playplace. Also its “Made For You” food preparation system has been installed systemwide in<br />
its U.S. and Canadian units.<br />
The McDonald's concept originated in San Bernardino, CA, in 1948, when Maurice and Richard McDonald reformulated the<br />
menu of their barbecue restaurant and began serving only hamburgers, fries, and shakes. An order for eight milkshake mixers<br />
attested to their success and attracted the attention of Ray Kroc, a mixer salesman. He negotiated a franchising agreement<br />
with the McDonalds in 1954 and opened his own stand in Des Plaines, IL, the following year. In 1960, Kroc bought out the<br />
McDonalds, and formed McDonald's Corp. The company went public in 1966. Other milestones include: Establishment of<br />
Hamburger U—1961; debut of Ronald McDonald—1966; and introduction of the Big Mac—1968.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
410
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
More than 40 items including hamburgers, specialty burgers like the Big Mac and McDLT, fish and several types of chicken<br />
sandwiches, including the Chicken Flatbread, fries, soft drinks, shakes, McFlurry desserts, ice cream sundaes and cones,<br />
pies, and cookies. Breakfast features eggs and Canadian bacon on English muffin (McMuffin), hotcakes, biscuit and bagel<br />
sandwiches, muffins and juices. Various combinations menued as Value Meals. Numerous items are in test ranging from pizza<br />
and premium salads to delivery services. Check Averages: $4.25<br />
Promotion Plans |<br />
McDonald’s has returned to using sweepstakes as a marketing tool with new security measures in place. This comes two<br />
years after its Monopoly promotion was plagued with fraud. “Winning Time”—to be launched in late March—will award a<br />
variety of prizes such as cash, sports cars, personal services and visits with celebrities. Prizes can be won by obtaining a<br />
winning game piece, rather than a series of pieces, as had been the case with the Monopoly promotion. The FBI arrested eight<br />
people in 2001 who allegedly had cheated the chain out of more than $13 million by rigging that promotion and others for six<br />
years. In other news, McDonald’s and Sega of America will partner on a new line of Happy Meal premiums for summer<br />
promotion. They will be based on two popular Sega video games: Super Monkey Ball and Sonic the Hedgehog.. The Sega<br />
deal was announced shortly after McDonald’s inked a deal with Hasbro Inc. for a Happy Meal promotion this spring. In other<br />
marketing news, McDonald’s reportedly is considering doing away with its “We love to see you smile” tag line in favor of a new<br />
ad campaign. (NRN 3/17/03 p14 & 3/31/03 p3)<br />
McDonald’s Corp. reintroduced the Monopoly promotional game. Prizes range from cash to new SUV’s to food items to crosspromotional<br />
merchandise from Best Buy. This is the first time the game has been launched since 2001, when fraud charges<br />
were brought against eight people for tampering with the game. (NRN Daily NewsFax 10/15/03)<br />
McDonald’s assigned Publicis Groupe’s Leo Burnett to develop a global ad campaign for the chain’s Big Mac sandwich. (NRN<br />
Daily NewsFax 12/5/03)<br />
McDonald’s Corp. named DDB Worldwide for a global french-fry campaign under the chains “Rolling Energy” marketing<br />
program. The campaign is slated to launch later this year and will use the chains “I’m lovin’ it” tag. (NRN Daily NewsFax<br />
12/23/03)<br />
McDonald’s restaurants in the greater New York area are launching the “Real Life Choices” initiative. The program is designed<br />
to help weight-conscious customers craft meals that fit within their dietary guidelines. (Restaurant Business Daily News 1/6/04)<br />
<strong>Menu</strong> Development |<br />
McDonald’s is making healthful menu changes on several fronts. In late March, it planned to launch a new, premium line of<br />
plated salads to be priced higher than its “shaker” salad varieties. Participating restaurants will offer the California Cobb,<br />
Caesar and Bacon Ranch salads, each with a choice of grilled or fried chicken and a selection of Newman’s Own salad<br />
dressings. The dressing choices will be Newman’s Own Cobb, Classic Caesar, Creamy Ranch or Lite Balsamic Vinaigrette. A<br />
price of $3.99 previously had been estimated. In separate news, the company is seeking to boost Happy Meal sales by<br />
offering add-ons such as apple slices, fruit juices, carrot sticks and peanut butter and jelly sandwiches. Also reportedly under<br />
consideration was a “Mom’s Meal” that would include a lip-gloss gift. The company said its restaurants in the United Kingdom<br />
will begin selling fresh fruit in April as part of new options for Happy Meals. Sliced apples and seedless grapes will be an<br />
alternative to french fries and also can be purchased separately for about 93¢. Also available in the British market will be a fruit<br />
juice product with no added sugar called “Robinson’s Fruit Shoot” and a chicken-breast-based item called Chicken Selects. In<br />
addition, limited-time offerings on New Tastes <strong>Menu</strong>s there will include a 266-calorie pasta and chicken salad with a red pesto<br />
dressing; a 239-calorie toasted ham and cheese melt; and a 480-calorie chicken salsa flatbread sandwich. The company<br />
disputed a report that Happy Meal sales have fallen three years in a row, noting that Happy Meal sales continue to exceed<br />
20%. And finally, McDonald’s said that it would need an unspecified additional amount of time to make the previously<br />
announced change in its frying oil to reduce trans fatty acids and saturated fats content. The switch originally was scheduled<br />
for completion by the end of February. (NRN 2/10/03 p3 & 3/3/03 p96; NDNF 2/24/03 & 3/3/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s announced several sweeping operational changes as part of its turnaround program. As part of the Restaurant<br />
Optimization portion of the strategy the chain will cut more than 80 menu items; reduce prices so that each ends in a zero or<br />
five to ease consumer price calculations; switch to an automated beverage-dispensing system; and add more premium menu<br />
options, beginning with its McGriddle hand-held breakfast offering planned for June. It is also reportedly considering changes<br />
for its sandwiches. Possible initiatives outlined at a recent company convention included reformulating hamburger buns and<br />
bringing back the original “special sauce” recipe for its Big Macs. More sugar would be added to hamburger buns so that they<br />
toast more easily and Filet-O-Fish sandwiches would be steamed to melt the cheese and improve overall flavor. Separately,<br />
the chain is testing a lower-fat version of its Chicken McNuggets in select New York and Columbus, OH, outlets. The<br />
revamped offering features all-white-meat chicken and has 14% fewer calories and 15% less fat than the original version. A<br />
four-piece portion of the original McNuggets contains 210 calories and 13 grams of fat. (Restaurant Business Daily News,<br />
Associated Press, Nation’s Restaurant News)<br />
McDonald’s could reformulate some of its best-selling sandwiches, including the Big Mac, according to franchisees who said<br />
that corporate officials had briefed them about pending changes. Being considered are a return to the Big Mac’s original<br />
“special sauce” and the addition of more sugar to buns so they toast more easily. Company officials offered no comment but<br />
did deny reports that it was no longer planning to remodel or rebuild older units. In other news, McDonald’s is testing a lowerfat<br />
version of its Chicken McNuggets at about 1,000 units in New York and Columbus, OH. (NDNF 4/2/03; NRN 3/31/02 p3)<br />
McDonald’s will complete its national rollout of McGriddles by June 10, making it a permanent offering. Intended to boost<br />
breakfast sales, it features breakfast meat, eggs and/or cheese layered between two pancake discs. The pancakes are<br />
embossed with the Golden Arches logo and are said to have the taste of syrup baked in. Three varieties are being offered:<br />
Sausage; Sausage, Egg and Cheese; and Bacon, Egg and Cheese. They are priced $2.19 individually and $3.19 as part of a<br />
combo meal. (Restaurant Business <strong>Menu</strong> Strategies Newsletter)<br />
McDonald’s introduced a permanent “Salads & More” menu in nearly 600 restaurants in Southern California. The menu<br />
features several healthful options that have previously been available as well as a new McVeggie burger and new grilled<br />
chicken sandwich on a whole-wheat bun. The McVeggie Burger is priced at $2.19 and features a soy-based patty, barbecue<br />
sauce, lettuce, tomato, onions and pickles. It has seven grams of fat and 350 calories. The grilled chicken sandwich is a<br />
permanent regional replacement for the Chicken McGrill and is served on a white bun without barbecue sauce. Priced at<br />
$2.89, it has seven grams of fat and 320 calories. Along with the chain’s new premium salad line, other items on the Salads<br />
and More menu include a chicken fajita and Fruit ‘n Yogurt Parfait. (NRN Daily NewsFax)<br />
McDonald’s is testing deli sandwiches priced from $2.79–$5 at its 3 ‘n 1 prototype in Lincoln, NB. Oven-baked Reuben<br />
sandwiches are also a good seller. (USA Today, 6/3/03, p2B)<br />
McDonald’s is testing crab cakes at 35 units in Maryland, Virginia and southern Delaware. This version reportedly has less fish<br />
filler and corn meal than one offered in the summers of 2001 and 2002. Priced at $4.99, the hand-made cakes are pre-fried<br />
and microwave-ready. They contain 67% lump and back fin crabmeat and are seasoned with Old Bay. (The Baltimore Sun,<br />
6/27/03)<br />
Cajun cuisine will be the focus of McDonald’s new Chef Mac’s concept in New Orleans. The more upscale quick-casual<br />
restaurant features a chandelier, leather couches and foods served on china. The menu emphasizes local Louisiana flavors in<br />
items such as po-boys, muffulettas, barbecue chicken, margarita pizzas, Louisiana shrimp, and panini bread filled with chicken<br />
cordon bleu. It also offers specialty coffees and desserts, including praline cheesecake and bread pudding. (Chicago Tribune,<br />
8/13/03, p3B)<br />
McDonald’s is testing a “Go Active” Happy Meal. Priced at $4.99, it includes a salad, 21-oz. bottle of water and a stepometer<br />
that tracks the number of steps a person takes daily. (Restaurant Business Daily News, 9/4/03)<br />
Vegetarians can now enjoy a greater variety of options on fast-food menus as operators work to meet demand for healthier<br />
foods and appeal to consumers, especially women, who are likely to eat elsewhere to find healthy choices. Upgraded salads,<br />
soy burgers, veggie wraps and soups, and yogurt smoothies are increasingly common. Burger King now offers a Veggie<br />
Burger, which can be prepared on a separate grill from its meat options upon request. It also has several side salads. Chipotle<br />
positions itself as a fresher approach to Mexican and offers a variety of meatless options, including a vegetarian burrito that<br />
can be customized, a side of rice and beans, and guacamole. McDonald’s also has a McVeggie Burger and has supplemented<br />
its menu with a line of premium salads served with Newman’s Own dressings. Subway offers a Veggie Delite sandwich, and<br />
select stores offer Gardenburger products. Wendy’s now has a range of meatless options, including four Garden Sensations<br />
salads and baked potatoes with several meatless toppings. Panera also broadened its vegetarian options this year. While it<br />
previously only offered vegetarian salads and soups, it now serves a Garden Vegetable Sandwich on ciabatta bread.<br />
(Vegetarian Times, 9/03, p63)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
412
<strong>RISE</strong> COMPANY PROFILE<br />
Steaming is once again the standard preparation for the buns in McDonald’s Filet-O-Fish sandwich. The chain had been<br />
toasting the buns as one of many changes with the Made For You system. The chain is also pre-toasting and pre-dressing<br />
buns for some sandwiches and placing them in a holding area during high-traffic periods, another apparent departure from the<br />
Made For You system, which was introduced five years ago. (Restaurant Business Daily News, 8/21/03, Restaurant Business<br />
<strong>Menu</strong> Strategies Newsletter, 8/27/03)<br />
McDonald’s launched 150 test units of the $3.99 adult “Go Active! Happy Meal.” Developed by Bob Greene, Oprah Winfrey’s<br />
personal trainer, the meal includes one of McDonald’s entrée salads, bottled water, pedometer and exercise booklet. In test in<br />
Indiana, the program is specifically targeted towards women. (NRN Daily NewsFax 9/15/03)<br />
McDonald’s is looking to expand its premium salad line with a taco-style offering now being tested in Indianapolis. (Brandweek<br />
9/22/03 p10)<br />
McDonald’s is sponsoring a Get Lean Houston program in that city. It features a low-fat menu of salads, chicken sandwiches<br />
and the McVeggie Burger, similar to the Salads & More menu, which rolled out earlier this year in Southern California outlets.<br />
The restaurant is also distributing stepometers—developed by Coca-Cola for its own “Step With It” program—that track the<br />
number of steps taken in a single day. The program could last indefinitely. (Nation’s Restaurant News 9/15/03 p6)<br />
McDonald’s is promoting a bratwurst sandwich in its Chicago market. It is priced at $1.99 individually or $3.99 as part of a<br />
combo meal. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 11/5/03)<br />
Southwestern flavors are featured in what some are calling Western or Cowboy Cuisine. This cooking style has been evident<br />
in restaurants for some 20 years, and really got its start in the 1980s when chefs such as Robert Del Grande, Mark Miller and<br />
Stephan Pyles began blending local ingredients, Tex-Mex and Mexican practices and European techniques. The result was<br />
boldly flavored rustic food. It has since gained exposure in several mainstream restaurants. Examples include a Cowboy<br />
Ribeye at Coyote Café, a Del Rio Salad at McDonald’s or the Santa Fe Chicken Baguette at Burger King. Southwestern has<br />
also become accepted as a fine-dining concept in that region. Today’s version increasingly pairs traditional ingredients such as<br />
corn, chilies and cilantro with trendier elements and techniques. Roaring Fork in Scottsdale, AZ, offers a Sugar & Chile-Cured<br />
Duck Breast with a gratin of green chile macaroni. Lonesome Dove Western Bistro in Fort Worth, TX, serves Seared Colorado<br />
Lamb Chops that are rubbed with guajillo chile powder and cumin, among other ingredients. The dish is accompanied by<br />
blueberry mole sauce. A side dish of Western Plaid Hash served with roasted beef tenderloin combines cabbage, jalapeno<br />
and green peppers braised in syrah wine with fried potatoes. The restaurant also pays homage to the one-pot meals once<br />
popular with cowboys by offering upscaled versions such as Braised Pork Shank with Three Bean Ragout. (Restaurant<br />
Business 10/15/03 p50)<br />
McDonald’s rolled out its new Chicken McNuggets systemwide. The nuggets are made with lower-fat white meat and contain<br />
40 fewer calories, 3 grams less fat and 0.5 grams less saturated fat than previous nuggets. The launch is being supported by<br />
national advertising. (NRN Daily NewsFax 11/19/03)<br />
International Activities |<br />
McDonald’s restaurants in the United Kingdom reportedly are preparing to provide nutritional information about menu items on<br />
the wrappers in which they are served. Caloric content and nutritional breakdowns would be provided on wrappers. The<br />
Center for Science in the Public Interest released a statement pressuring McDonald’s to provide the same information on<br />
packaging in the U.S. (RB 3/1/03 p10)<br />
McDonald’s Brazil and AOL Brazil have teamed up to allow customers Internet access at McDonald’s 584 Brazilian branches.<br />
Also participating in the “McInternet” project, which requires a collective investment of $20 million, is Banco Itau. The five-year<br />
deal calls for AOL Brazil to develop special content for the project and provide Internet access at the restaurants. Custumers<br />
with a receipt will receive online access at computer terminals on the day of their purchase for between 15 minutes and one<br />
hour, depending on a store’s locations. To teach customers how to navigate the Web, McDonald’s will add 1,200 new<br />
employees to work with them. To be rolled out gradually, the new program will debut first in Sao Paulo and Rio de Janeiro. It<br />
calls for AOL to distribute software CDs, with one-third of the first payment made by each customer who registers via the CD<br />
to be donated to the Ronald McDonald Institute. (NDNF 5/5/03)<br />
McDonald’s plans to double its restaurant count in India over the next three years. Plans reportedly call for some 50 units to be<br />
added to the 47 already operating there. Cost of the expansion is expected to be between $211 million and $275 million. (FIR<br />
4/14/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
413
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Restaurants of Canada Ltd. and Dairy Queen Canada have begun purchasing all their beef from Canadian<br />
producers, which have experienced flagging sales in the wake of a mad cow scare in that country. Canadian politicians had<br />
requested the change. In the past, McDonald’s 1,300 Canadian units purchased nearly 80% of their beef from Canadian<br />
producers. Dairy Queen, with 550 units in Canada, was the first chain to agree to alter its beef purchasing practices. The<br />
Saskatchewan Party Caucus said it also petitioned the Canadian arms of Wendy’s, Burger King and A&W to buy only<br />
Canadian beef. In related news, McDonald’s Restaurants of Canada planned to give away an estimated three million freehamburger<br />
coupons on August 22 to burger buyers at its stores. They may be redeemed through September 30. (NRN 8/4/03<br />
p3; NDNF 8/8/03)<br />
McDonald’s Holdings Co. (Japan) Ltd. continues to try to turn the tide in its 3,800 stores in Japan. The chain has been<br />
introducing new items under its New Tastes banner in an attempt to attempt to woo back customers and attract new ones.<br />
Among new items are a French-style hamburger with ratatouille sauce, a vegetable croquette burger and a fried green spring<br />
roll filled with red bean sweetener. McDonald’s Japan plans to replace its New Taste menu items every six weeks, as part of<br />
an effort to appeal to Japan’s hip young women. They are among the groups that McDonald’s believes it has not yet tapped as<br />
customers. Many still live at home and have plenty of money with which to eat out. McDonald’s Japan expects to see samesales<br />
drop this year by 3.5% following last year’s 12.1% drop. The chain’s flagging sales are due in part to Japan’s economic<br />
woes, increasing competition from other chains and lingering effects of the mad-cow scare, which hurt the company even<br />
though its beef was not tainted. (WSJ 8/14/03 pB1)<br />
Priszm Brandz said that its 250 Pizza Hut outlets across Canada would buy only 100% Canadian beef to help support the<br />
country’s ailing beef industry. Its Pizza Hut restaurants buy approximately 3 million pounds of beef products annually. Priszm<br />
franchises more than 760 KFC, Taco Bell, Long John Silver’s and Pizza Hut outlets. In making the 100% Canadian beef<br />
pledge, at least temporarily, it is following the lead of the Canadian arms of McDonald’s and Dairy Queen. (NRN 8/25/03 p56)<br />
Technology |<br />
McDonald’s revamped its Web site and activated a new toll-free phone line so that consumers can easily access information<br />
about the nutritional values of its foods. The new Web tools include “Bag a McMeal,” which allows users to drag up to five<br />
McDonald’s menu items into a virtual bag to receive a cumulative nutrition profile concerning calories, fat, cholesterol and<br />
sodium. Visitors to the site also can “Customize an Item” and obtain a nutritional profile of a special order, such as a<br />
McChicken sandwich without mayonnaise or a Big Mac minus sauce or cheese. (NDNF 3/7/03)<br />
McDonald’s Corp. is offering wireless Internet access in an expanded test at dozens of San Francisco-area units. About 75<br />
outlets soon will offer two hours of Internet access for $4.95 to users of notebook computers and handheld devices capable of<br />
wireless connection. The company is partnering with Wayport Inc., a wireless-technology vendor, for the test and notes that<br />
the San Francisco program is the first of three tests in major metropolitan markets planned for this summer. (NRN 7/21/03<br />
p99)<br />
McDonald’s Corp. is offering wireless Internet access in an expanded test at dozens of San Francisco-area, Chicago and<br />
Milwaukee units. The outlets soon will offer one-to-two hours of Internet access for $4.95 to users of wireless-connectioncapable<br />
notebook computers and handheld devices. In the Chicago and Milwaukee programs customers will also receive free<br />
one-hour access with the purchase of an extra-value meal or premium salad. (Nation's Restaurant News 7/21/03 p99,<br />
ChicagoTribune.com 8/13/03)<br />
McDonald's, IBM and Palm have teamed for a promotion. In the campaign, customers who use McDonald's wireless Internet<br />
access and complete a multiple-choice survey at participating restaurants in the Bay Area are eligible to win either an IBM<br />
ThinkPad notebook computer or a Palm Tungsten C handheld. The promotion runs from August through December, with one<br />
winner chosen for each prize. McDonald's also announced that it would revive McMoms, a direct marketing initiative through a<br />
new Web site and e-mail newsletter. The pilot program is targeting 10,000 moms in six states and will offer coupons and<br />
parenting advice. A section asking for feedback regarding McDonald's new premium salads is also featured in the newsletter,<br />
as is a link to McMoms.com. States included in the program are Alabama, Indiana, Kentucky, Michigan, Tennessee and<br />
Illinois. (Company Release 8/15/03, DMNews.com 8/7/03)<br />
McDonald’s is offering wireless Internet access to customers at more than 60 Chicago-area restaurants as it expands the Wi-<br />
Fi tests that it debuted in New York and San Francisco. Through September, the Chicago McDonald’s will offer one hour of<br />
free Web access with the purchase of an entree salad or Extra Value Meal. Prices otherwise are $4.95 for an hour or $7.95 for<br />
up to 24 hours. By the end of September, the chain plans to have a total of 250 outlets offering wireless Internet access in all<br />
three markets. (NRN 8/25/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
414
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Corp. plans to close its four robotic vending units, Tiktok Easy Shop, in Washington, DC, after a 15-month test.<br />
The unit stands 15 ft. by 12 ft. and offers nearly 200 items, including milk, eggs and pantyhose. The chain also announced it<br />
will continue experimenting with DVD movie-rental machines in the Washington and Las Vegas areas. (NRN Daily NewsFax<br />
11/14/03)<br />
McDonald's has expanded its wireless Internet access test to Boise, ID. It is the fifth city to be included in the test, which<br />
started this summer. Two additional cities are expected to be added to the pilot program, with the first by the end of the year,<br />
and the other in 2004. Other cities already included in the program are San Francisco, New York City, Chicago and Seattle.<br />
(IdahoStatesman.com 10/29/03)<br />
Six McDonald's restaurants in Colorado Springs, CO, are routing orders through a call center. At each restaurant, customers<br />
are able to call in their orders on telephones sitting on each table. The orders are relayed to the kitchen and brought to the<br />
tables. Average orders are 10¢–15¢ greater under the new system. A McDonald's in Brainerd, MN, has also set up a highspeed<br />
data line so that it can run its customer orders through the Colorado Springs call center. (Suntimes.com 10/9/03)<br />
McDonald’s has expanded its Wi-Fi access test to Boise, ID. It is the fifth city to be included in the test, which started this<br />
summer. Two additional cities are expected to be added to the pilot program, with the first by the end of the year, and the other<br />
in 2004. Other cities already included in the program are San Francisco, New York City, Chicago and Seattle.<br />
(IdahoStatesman.com 10/29/03)<br />
Personnel |<br />
James Cantalupo, Chairman<br />
Charles Bell, President<br />
Larry Light, Chief Marketing Officer<br />
Frank Muschetto, Director of Purchasing<br />
Alex Conti, <strong>Menu</strong> Development/R&D<br />
McDonald’s Corp. named Cathy Kapica director of worldwide nutrition, a newly created position. Previously, Kapica was the<br />
senior scientist and director of nutrition education at Quaker Oats Co. (NRN Daily NewsFax 10/6/03)<br />
McDonald’s Corp. named Marcel Fleisch-Mann vice president of its Latin America division effective 2004. Previously, Fleisch-<br />
Mann was head of the chain’s restaurants in Brazil. (NRN Daily NewsFax 10/22/03)<br />
McDonald’s Corp. appointed Kay Napier as senior vice president and marketing officer for McDonald’s Europe. (NRN Daily<br />
NewsFax 12/5/03)<br />
News & Other |<br />
McDonald’s said that some units in New York City are offering high-speed wireless Internet access for customers via a<br />
partnership with Intel Corp. By year-end, the program is scheduled to expand to several hundred units in New York, Chicago<br />
and a major California market. For the next three months, wireless-enabled laptop computer users in New York will receive<br />
one hour of free, high-speed wireless Internet access through an open account when they buy an Extra Value Meal at<br />
participating McDonald’s. A single Internet session of up to 60 minutes also can be purchased by customers for $3. (NRN<br />
3/24/03 p78)<br />
The California Milk Processor Board has teamed with McDonald’s 153 Sacramento, CA, area restaurants to conduct a threemonth<br />
test that offers a carton of milk as a replacement for the soft drink that usually accompanies Happy Meals. The GOT<br />
MILK? trademark will be used both in McDonald’s advertising and in the restaurants. A special logo featuring the Golden<br />
Arches and GOT MILK? was developed for the promotion. (FIR 4/21/03 p8)<br />
McDonald’s Corp. named Tim Fenton president of its U.S. East division, which includes about 5,000 restaurants. He replaces<br />
Henry Gonzalez, who resigned the post but is considering other jobs with McDonald’s. Fenton, with the company for 29 years,<br />
most recently served as senior vice president for Southeast Asia, Middle East and Africa. Fenton will report to Ralph Alvarez,<br />
executive vice president and chief operating officer for McDonald’s U.S. division. (NRN 4/28/03 p3 & 5/5/03 p155)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s, which posted its first-ever quarterly loss in January, reported a 29% jump in first-quarter profits to $327.4 million,<br />
compared to $253.1 million one year ago. Although worldwide same-store sales fell 3.6% in the quarter, the company<br />
benefitted from favorable currency conversion rates, helped by a weak U.S. dollar that enhanced European revenues. U.S.<br />
same-store sales fell 2% during the first quarter, with same-store sales down 4.4% in Europe, 8.3% in the Asia-Pacific market<br />
and down 6.1% in Canada. The only region with same-store sales growth was Latin America, which had a 3.4% increase.<br />
(NDNF 4/29/03)<br />
Corp. plans to reduce spending by $700 million this year and open 640 fewer units than in 2002, chairman and chief executive<br />
Jim Cantalupo told Wall Street analysts. The company plans to spend $1.2 billion on capital expenditures in 2003 rather than<br />
its originally projected $1.9 billion and $800 million less than the $2 billion it spent in 2002. In addition to some previously<br />
announced changes, McDonald’s also plans several initiatives to improve food and simplify operations. It will streamline its<br />
pricing structure before year’s end by having all menu prices in the U.S. end in a zero or a five to make it easier for customers<br />
to add meal costs in their heads. The chain also is encouraging operators to add staff during the lunch rush, including a<br />
“hostess” or greeter who stands on the customer side of the counter. It also is fine-tuning its production system to reduce the<br />
number of keystrokes required to enter items on the menu. McDonald’s also plans to return to a system that uses boxes rather<br />
than wrappers for premium sandwiches. In addition, it plans to introduce its McCafe coffeehouses into the U.S. market<br />
sometime this year and to wire several hundred U.S. stores for Internet access in major urban areas such as New York and<br />
Chicago. Currently in test are self-serve ordering kiosks and a computer-based training program that the company estimates<br />
could reduce training costs by 15%. Fred Turner, senior board chairman and the veteran executive who succeeded founder<br />
Ray Kroc in heading up the chain between 1977 and 1990, reportedly is coming out of retirement to refine some of the<br />
planned kitchen changes, although that report had not yet been confirmed by the company. (NRN 4/21/03 p8; FIR 4/14/03 p4)<br />
A recent study from Tufts University revealed that although many consumers perceive menu items in the quick-casual<br />
segment to be healthier than traditional fast-food, some of those foods are higher in both fat and calories. According to its<br />
research, a McDonald’s Quarter Pounder with Cheese has less fat and calories than both Panera’s Smoked Ham & Swiss<br />
sandwich and Baja Fresh’s Steak Burrito. It also revealed that Jack in the Box’s Chicken Fajita Pita contained less than half<br />
the fat and calories of Au Bon Pain’s Chicken Caesar Wrap and a regular-sized McDonald’s hamburger and six-inch turkey<br />
breast sub from Subway both have less calories and fat than a traditional vegetable sandwich on multigrain bread at Panera.<br />
(Nation’s Restaurant News)<br />
Boston Market’s Rotisserie Grill, the chain’s new upscale offshoot, will be expanded this year in Dallas; New York; St. Charles,<br />
IL; and Westborough, MA. The first one opened in May in Tallahassee, FL. With entrees in the $6–$9 range, the McDonald’sowned<br />
chain expects dining at the new concept to be akin to eating at a casual-dining operation. Food will be served on real<br />
china with real cutlery. Dining rooms will have upholstered seats and floors carpeted or covered with hardwood rather than<br />
tiles. Although orders are still placed at a counter, runners now bring meals to customers’ tables. Some locations will offer beer<br />
and wine. Boston Market’s system currently consists of 650 stores in 28 states. McDonald’s Corp. bought the chain in 1999.<br />
(RB 6/1/03 p14; FIR 5/12/03 p8; NRN 5/19/03 p6)<br />
McDonald’s 600 Southern California restaurants have introduced “Salads & More,” a permanent, eight-item menu. It includes a<br />
new McVeggie, which is flavored with barbecue sauce; a Whole Wheat Grilled Chicken Sandwich; a California Cobb Salad; a<br />
Chicken Fajita; and a Happy Meal that replaces fries with a snack-sized Fruit‘n Yogurt Parfait. Some of the items have<br />
previously been available but are now being packaged under Salads & More to emphasize the chain’s lower-fat, lower-calorie<br />
foods. In other menu news, McDonald’s has begun rolling out its new McGriddles breakfast sandwich line at some locations. It<br />
features two maple syrup-flavored pancakes with fillings such as sausage ($1.59); sausage, egg and cheese ($2.19); or<br />
bacon, egg and cheese ($2.19). (NRN 5/26/03 p1; FIR 5/19/03 p6; RB 6/1/03 p12; NDNF 5/27/03 & 6/3/03)<br />
McDonald’s Corp. is “making headway” with operational changes, reorganized marketing efforts and “more wholesome<br />
choices” on the menu, chairman and chief executive Jim Cantalupo told shareholders at its May 22 annual meeting in Oak<br />
Brook, IL. He told shareholders that their “faith and patience” would be rewarded, although it could take up to 18 months. He<br />
acknowledged that the chain still has “a long way to go,” despite its domestic same-store sales’ positive turn in April following<br />
its debut of a new premium salad line. In related news, the company may eliminate more jobs after cutting 1,450 in the last two<br />
years. It told analysts that it is examining staffing levels in an effort to weed out duplication and waste. Special attention is<br />
being paid to headquarters staff, their role in the company and whether or not they are duplicating tasks that are being handled<br />
in the field. In other news, McDonald’s was ordered by a Los Angeles County Superior Court jury to pay $16.5 million to former<br />
four-unit Southern California franchisee Sandra Darling, who charged that the company had conspired to defraud her, wrongly<br />
force her from the system and pushed her into bankruptcy. The jury, which heard charges that McDonald’s was interested in a<br />
$3.5 million-a-year branch she ran and would not subordinate a loan she needed to make required improvements, awarded<br />
Darling $6.5 million in compensatory damages and $10 million in punitive damages. McDonald’s said it is confident the<br />
decision will be overturned. And finally, Cantalupo acknowledged that McDonald’s is conducting a strategic review of its<br />
nonburger chains—including Boston Market, Chipotle and Donatos—with Morgan Stanley. (NRN 5/12/03 p4 & 6/2/03 p4; RB<br />
5/15/03 p12; NDNF 5/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
416
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s recently opened two Redboxes in the Baltimore/Washington, DC area. A company spokesperson said that the<br />
Redbox self-serve kiosk is the new branded name for what previously was called the Tik Tok Easy Shop. The kiosks sell<br />
basics such as milk, eggs, bread, butter and a variety of beverages as well as convenience items such as Band-Aids, pain<br />
relievers and laundry-related items. The machines accept cash and all major credit cards. The Redbox installations follow<br />
eight Tik Tok Easy Shop installations, which primarily sell DVDs. (AM 5/03 p72)<br />
Population shifts affect the restaurant industry. Emerging chains often look to population trends and try to respond<br />
appropriately; so many must have found recent U.S. Census Bureau data intriguing. The bureau revealed that Hispanics have<br />
become the country’s largest minority group with about 37 million people, with blacks numbering approximately 36 million.<br />
Studies also show that Hispanics are the third largest-spending ethnic group after whites and blacks. The greater the Hispanic<br />
community in the U.S., the more influence it likely has on all Americans and the food industry. Their culture, particularly the<br />
cuisine, spreads as Hispanic chefs prepare Latin-inspired foods and entrepreneurs open more such restaurants. The<br />
increased supply of Mexican and Latin fare seems welcome considering Americans have more adventuresome tastes than<br />
ever and increasingly indulge in ethnic fare. Naturally, this increased acceptance propels demand so more concepts emerge to<br />
feed it. In fact, <strong>Technomic</strong> believes the Mexican quick-casual segment in particular will double over the next five years. New<br />
competitors are sprouting up within the U.S. while several promising chains are being imported from Latin America and<br />
Mexico. These chains seem to cater well to those seeking authentic “south of the border” foods. The Wall Street Journal<br />
recently reported on such imported concepts that are worth watching, including: · Churromania—limited-service churro chain,<br />
imported in 2001 · Pollo Campero—limited-service chicken chain, imported in 2002 · El Fogoncita—quick-casual pork taco<br />
chain, imported in 2003 · Gorditas Dona Tota—limited-service cheese pastry chain, imported 2003 · El Tizoncito—quickcasual<br />
pork taco chain, imported 2003 Major restaurant companies have already invested in the segment. Jack in the Box<br />
bought Qdoba Mexican Grill this past February; Wendy’s International is invested in Baja Fresh Mexican Grill; and McDonald’s<br />
owns Chipotle Mexican Grill. The list of emerging chains with Mexican and Latin influences, including Southwestern fare, that<br />
we’re tracking includes Salsarita’s Fresh Burrito (6 units, profiled in this issue); Z’Tejas (12 units); La Salsa (96 units);<br />
Pancheros Mexican Grill (9 units); Chico’s Tacos (23 units); Burrito Beach (5 units); Burritoville (12 units); Taqueria Cantina<br />
and Burrito Joint (10 units); Left at Albuquerque (8 units); Atomic Burrito (3 units); Blue Mesa Grill (4 units); and Tia’s Tex Mex<br />
(29 units). While the number of Hispanics escalates, the amount of Americans in general who enjoy Mexican and Latin fare<br />
seems to grow as well, painting a bright future for Mexican and Latin-inspired concepts.<br />
Wal-Mart stores will be the site of up to 200 McDonald’s openings during 2003, twice the number of freestanding units planned<br />
by the company, according to Dow Jones. McDonald’s already operates about 700 outlets inside Wal-Mart stores. (FES 2/03<br />
p24)<br />
McDonald’s said second-quarter U.S. same-store sales increased 4.9%. The favorable results were driven in part by menu<br />
additions such as a premium salad line and the McGriddle breakfast sandwiches. Although the sales news was positive,<br />
McDonald’s Corp.’s stock fell more than 4% to below $21 a share. Analysts note that the drop resulted from disappointed<br />
investors who had hoped the company would raise its quarterly profit forecast. (NRN 7/28/03 p5)<br />
McDonald’s Corp. executive vice president and chief concept officer Tom Ryan has left the company. No explanation was<br />
given. He had overseen U.S. menu management and developed products such as bagel sandwiches and the Shaker Salad<br />
line. In addition, the company said that Ed Sanchez, president of its Latin American and Canadian group, will leave at the end<br />
of the year to become chief executive of one of the company’s top suppliers. According to published reports, he will be<br />
president and co-owner of Lopez Foods, a meat supplier in Oklahoma City. His successor for Latin America reportedly will be<br />
Jose Armario. (NDNF 8/5/03)<br />
McDonald’s will open a Chef Mac’s quick-casual gourmet restaurant in New Orleans in September. The new eatery will be<br />
located on the first floor of an office building across from City Hall and the Louisiana Superdome. Modeled after a similar<br />
restaurant in Orlando, it will have chandeliers, leather couches and upgraded restrooms. Food will be served on china rather<br />
than plastic dishes. The menu will feature Louisiana shrimp, po-boys, muffulettas, barbecue chicken and margarita pizzas.<br />
Also available will be coffee drinks such as latte, mocha, cappuccino and espresso and desserts such as bread pudding and<br />
praline cheesecake. Prices haven’t been established but are expected to run less than $10 per entree. (CT 8/13/03 p3-3)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
417
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald's reported that worldwide same-store sales increased 3.8% for the month of August. In the United States, samestore<br />
sales grew by 8.8%. (NRN Daily NewsFax 9/10/03)<br />
McDonald’s Corp. expects to refurbish its older restaurants to contemporary store designs as part of a turnaround effort. The<br />
chain is facing operator opposition to renewal terms that may mandate reconstruction of aging facilities. With rebuilding costs<br />
exceeding $1 million per store, franchisees are concerned about their return on investment. (Nation’s Restaurant News<br />
9/15/03 p1)<br />
McDonald’s 9.9% U.S. same-store sales surge in July can be attributed to progress on its “Plan to Win” program, according to<br />
chairman and chief executive Jim Cantalupo. The initiative’s goal is to attract new customers, encourage existing ones to visit<br />
more frequently, create brand loyalty and be more profitable. The July sales gain followed a 7% increase in June. In addition to<br />
new products such as the well-received premium salads, chicken sandwiches and McGriddles breakfast sandwich, the nearrecord<br />
sales gain also is related to having thousands of U.S. units now operating on what the company calls “extended hours,”<br />
which in some cases means 24-hour service. McDonald’s noted that June was the highest breakfast sales month for the<br />
company in 13 years. In addition, the company is preparing to launch white-meat Chicken McNuggets. And in an effort to<br />
improve customer service, McDonald’s is rolling out an online hospitality-training program for all of its domestic employees.<br />
Cantalupo recently told investors that the company’s “partner brands” (Chipotle, Boston Market and Donatos) have not been a<br />
priority for him and that he has not arrived at a “strategic solution for how they fit in to McDonald’s Corp.’s future growth and/or<br />
the strategic direction the company is taking for McDonald’s.” All of the partner brands were acquired by Cantalupo’s<br />
predecessor, Jack Greenberg. (NRN 8/18/03 p3; RB 9/1/03 p14; BW August 18-25/03 p46)<br />
McDonald’s Corp. has formed a partnership with pop star Justin Timberlake that is tied to its worldwide “I’m lovin’ it” brand<br />
campaign, which broke in September in more than 100 countries. A series of new commercials featuring Timberlake’s vocals<br />
debuted in Munich, Germany, in early September and were to be rolled out worldwide throughout the month, with the U.S.<br />
launch slated for September 29. The campaign marks the first time that McDonald’s has used a single set of commercials at<br />
the same time worldwide. Separately, the company has launched a Happy Meals promotion featuring eight interactive toys<br />
based on the Disney Channel’s animated spy series “Kim Possible.” (NDNF 9/3/03; NRN 8/11/03 p14)<br />
McDonald’s said that it considers a federal judge’s dismissal of an obesity-related lawsuit a total victory for the company. U.S.<br />
District Judge Robert Sweet, who in January had rejected an earlier version of the lawsuit, dismissed the follow-up lawsuit<br />
against McDonald’s Corp., which was charged with allegedly violating state consumer protection laws in its marketing of foods<br />
blamed for the obesity and health problems of eight teenagers. The judge said that the parents and guardians of the teens<br />
failed to prove that harm had come solely from frequent consumption of McDonald’s foods or from its advertising. The judge<br />
also rejected a motion that the plaintiffs be allowed to refile the complaint again in federal court in Manhattan. (NDNF 9/5/03)<br />
McDonald’s has signed Oprah Winfrey’s personal trainer to promote its new Go Active Meal. Bob Greene, a frequent guest on<br />
Winfrey’s television program and author of several fitness-related books, will help promote the $4.99 meal, an adult version of<br />
the Happy Meal that offers a salad and bottle of water or a medium fountain drink. Also included is a clip-on pedometer to<br />
encourage people to walk more frequently. In another fitness-related marketing move, McDonald’s has angered some of its<br />
competitors. The chain has circulated charts to reporters showing how its food compared to that of its main rivals. In<br />
comparing a typical hamburger Happy Meal to a ham sandwich, chips and a cup of milk from Einstein Bros., the burger chain<br />
noted that it contains 23 grams of fat, 4 grams less than the Einstein option. But Einstein said that its most popular children’s<br />
meal is half of a turkey sandwich, a side of fresh fruit and a carton of 2% milk, which contains just 6.5 grams of fat and 137<br />
calories less than the typical McDonald’s Happy Meal. Wendy’s and Subway’s also complained about McDonald’s<br />
comparisons. (CT 9/17/03 p3-1)<br />
Home Depot plans to expand a pilot program of adding Dunkin’ Donuts shops in its stores. The program is to be brought to<br />
metropolitan Atlanta in late 2003. In addition, Home Depot is testing small-scale McDonald’s stores in a few locations in the<br />
Los Angeles area. (FIR 8/4/03 p7)<br />
McDonald’s reported comparable sales increased 3.8% for the month of August while climbing 8.8% in the United States.<br />
(Nation’s Restaurant News 9/22/03 p18)<br />
McDonald’s partnered with nutritionist and author Pamela Smith to create the “McDonald’s Real Life Choices” program.<br />
Offering suggestions on how to make existing sandwiches healthier, the program is scheduled to debut in the New York tristate<br />
area in January 2004. (NRN Daily NewsFax 10/9/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
418
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s is emphasizing health and good nutrition via several initiatives. Filling its new post of vice president of healthy<br />
lifestyles is Ken Barun, who is overseeing health programs for the company, including a recently formed advisory council.<br />
Among those reporting to Barun is Cathy Kapica in the new post of director of worldwide nutrition. In the New York tri-state<br />
area, 650 McDonald’s restaurants are planning to debut a program in January that educates customers about how to eat at<br />
McDonald’s while following a low-fat, low-calorie or low-carbohydrate diet. The company is working with nutritionist and author<br />
Pamela Smith to create this “McDonald’s Real Life Choices” program. It won’t feature any new menu items but rather will offer<br />
suggestions about existing offerings. In Houston, McDonald’s restaurants are sponsoring a civic program called “Get Lean<br />
Houston” that encourages citizens to at least walk, even if they avoid other forms of exercise. The restaurants are distributing<br />
“stepometers”(pedometers) developed by Coca-Cola Co. for its “Step With It” program. McDonald’s is testing apple juice in<br />
drink dispensers as well as cut fruit as a Happy Meals option. On children’s television, the chain is running a public service<br />
campaign featuring a character called “Willie Munchright” who advises kids on eating right. As an aside, a McDonald’s<br />
franchisee in Perris, CA, notes that most of the McVeggie burgers she sells are being bought with fries. (NDNF 10/6/03 &<br />
10/9/03; RB 9/15/03 p18; NRN 9/15/03 p6)<br />
McDonald’s is introducing leaner white-meat Chicken McNuggets following a successful test. The new version has less fat and<br />
calories than the original version, which consisted of various kinds of chicken meat pressed together. (RB 10/1/03 p12)<br />
McDonald’s Corp.’s board approved a nearly 70% increase in its annual dividend, which the company said reflects its<br />
confidence in its revitalization. It said the increase was the largest in 25 years, raising the annual cash payout to 40¢ per<br />
share, from 23.5¢ per share, for a total distribution of about $500 million. The company noted its turnaround progress includes<br />
posting positive domestic same-store sales for five consecutive months and a nearly $400 million reduction of debt as of June<br />
30. In related news, McDonald’s Corp. president and chief operating officer Charlie Bell told Wall Street analysts that more<br />
franchise operators had left the burger chain in the past 12 months than had exited in the previous five years. He did not<br />
elaborate on the remark. Published reports later noted that the chain’s restaurant grading program had led to the increased<br />
rate of franchisee departures. A McDonald’s spokesman said that Bell’s statement reflected on the global system and that the<br />
number of domestic franchisees leaving the system has remained constant over the last five years. In related news, the burger<br />
giant is facing operator opposition to the part of its turnaround effort that includes renewal terms that may require<br />
reconstruction of aging facilities. Estimated rebuilding costs exceed $1 million per store and some franchisees say that their<br />
return on investment is not high enough to justify the outlay. The company will hire a law firm to be chosen by U.S. operators<br />
to provide them with contract renewal advice. (NRN 9/15/03 p1; NDNF 9/24/03 & 9/25/03)<br />
McDonald’s Corp. plans to test several McCafe coffee bars in the U.S. The European-style McCafe offers espresso-based<br />
drinks, chai tea, sandwiches and fancy pastries. The first one was opened in 1993 in Australia and today there are some 300<br />
McCafes in 17 countries. This year, 10 McCafes are slated to open in the U.S. (FIR 9/15/03 p6)<br />
McDonald’s reportedly is studying ways to sell its new healthier foods in supermarkets in the United Kingdom. It is said to be<br />
looking for additional distribution channels for some of its updated fast-food products such as wraps and baguettes. (FIR<br />
9/15/03 p6)<br />
Logan International Airport’s recently overhauled Terminal E includes 10 different restaurant brands. The revamped<br />
foodservice at the Boston airport was coordinated by BAA Boston. They include a 10,000-sq.ft. food court featuring<br />
McDonald’s, Sbarro, Wok & Roll and Au Bon Pain. Nearby is a 3,250-sq.ft. full-service Houlihan’s. Located in the presecurity<br />
retail area is Dine Boston Bar & Grill and a Dine Boston Café, both owned by Boston Red Sox player Darren Lewis. Their<br />
menus feature dishes from well-known Boston chefs, including Jimmy Burke of Tuscan Grill and Joe Milano of Old Union<br />
Oyster House. Logan International also plans to renovate food venues in its Terminals B and D. (NRN 9/29/03 p20)<br />
A food serving in Philadelphia is on average 25% bigger than in Paris, according to a research team led by a University of<br />
Pennsylvania psychology professor. At McDonald’s, a medium order of french fries in Philly weighed 65 grams more than in<br />
Paris and on average, portions at McDonald’s were 28% larger than in Paris. A serving of Haagan-Dazs ice cream was 42%<br />
larger. In Chinese restaurants, servings were 72% larger. Further, the Zagat guide for Philadelphia lists 18 all-you-can-eat<br />
restaurants and the Paris guide has zero. Two University of Pennsylvania undergraduates observed French diners as part of<br />
the project. They found that customers at a Paris McDonald’s lingered for an average 22 minutes, eight minutes longer than in<br />
Philadelphia. (CT 9/28/03 p13-9A)<br />
McDonald’s Corp. for the third quarter ended September 30, reported net income increased 12% to $547 million, and<br />
revenues increased 11% to $4.5 billion. Domestic same-store sales increased 9.5%, while they decreased 0.1% in Europe,<br />
1.8% in Latin America and 3.9% in the Asia-Pacific, Middle East and Africa regions. Same-store sales increased 0.7% in<br />
Canada. (NRN Daily NewsFax 10/23/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
419
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Corp. recently made a number of personnel changes. Promoted was Claire Barbrowski to chief restaurant<br />
operations officer. Previously, she was president of the chain’s Asia Pacific, Middle East and Africa division. Marvin Whaley,<br />
president of the chain’s North Asia division, will replace Barbrowski. Vice chairman Jim Skinner assumed additional<br />
responsibilities, including overseeing McDonald’s Holding Co. (Japan) Ltd. Richard Floersch was named worldwide human<br />
resources director. Previously, Floersch was senior vice president of human resources at Kraft Foods International. Business<br />
development president Mats Lederhausen assumed more managerial duties and will focus exclusively on the chain’s partner<br />
brands, which include Chipotle, Boston Market and Donatos Pizza. In other news, the chain also approved a plan to offer<br />
franchisees payment for rebuilding costs. The company will pay $475,000 toward the estimated $1.7 million for rebuilding an<br />
older unit. Originally, McDonald’s expected the expense to be absorbed solely by franchisees. In exchange for the payment,<br />
owner-operators will increase their rent by 1%. (NDNF 11/5/03; CT 10/21/03 Sec. 3 p1)<br />
McDonald’s units in Colorado Springs, CO, are routing orders through a call center. At six area restaurants, customers are<br />
able to call in their orders on telephones sitting on each table. The orders are relayed to the kitchen and brought to the tables.<br />
Average orders are 10¢–15¢ greater under the new system. A McDonald’s in Brainerd, MN, has also set up a high-speed data<br />
line so that it can run its customer orders through the Colorado Springs call center. (Suntimes.com 10/9/03)<br />
McDonald’s plans to test several prototypes in three markets in the first quarter of next year. Though the locations are not yet<br />
determined, the company has revived its McCafe concept with a test at existing restaurants in San Francisco and Raleigh, NC.<br />
In addition, 11 units in Lincoln, NE, have been remodeled into 3 ‘n 1 concepts. Those units feature McDonald’s traditional<br />
menu, an upscale sandwich shop and a separate area for desserts and baked goods. (NRN 10/20/03 p74)<br />
Diets are becoming popular branding opportunities for restaurants, celebrity chefs and fitness gurus. With the recent<br />
partnerships between chef Rick Bayless and Burger King, as well as Oprah’s personal trainer, Bob Greene, and McDonald’s,<br />
aligning with and promoting branded diets has become a new way to attract the nation’s millions of dieters. Private diet<br />
companies are also teaming with operators, as noted by agreements between Weight Watchers and Applebee’s and Atkins<br />
Nutritionals and Blimpie Subs & Salads, which stocks the diet company’s low-carb Cruncher Chips. (NRN 11/3/03 p4)<br />
McDonald’s has taken issue with the term “McJob” and its inclusion in the newest edition of Merriam-Webster’s dictionary. The<br />
term, as defined by Merriam-Webster, refers to a “low-paying job that required little skill and little opportunity for advancement”<br />
In a letter sent to Merriam-Webster and published in Nation’s Restaurant News, McDonald’s chairman and chief executive Jim<br />
Cantalupo blasted the dictionary’s decision to define and publish the word, as he believes McDonald’s and many other<br />
restaurant operators do the nation’s youth a service by teaching them skills and responsibilities they will use for the rest of<br />
their lives. (NRN 11/3/03 p18; WSJ 11/14/03 W15)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
McDonald’s U.S. sales rose 15% in October, the company’s strongest monthly sales gain in five years. October same-store<br />
sales in U.S. McDonald’s restaurants jumped 15.1% and comparable-restaurant sales worldwide rose 8.4%. The latter figure<br />
included a positive turn in Europe, where same-store sales rose 2.1%. In related news, just a few weeks after McDonald’s<br />
indicated that a decision would soon be made about its “partner brands” came reports that the company was close to finalizing<br />
a deal to sell the 180-unit Donatos Pizzeria chain back to its founder, Jim Grote. Donatos declined to comment on the reports.<br />
McDonald’s had said that it expected to take a fourth-quarter charge for actions related to its partner brands, which as a group<br />
are losing money. McDonald’s assigned Mats Lederhausen, its head of business development, to focus exclusively on those<br />
brands as part of a global senior management reorganization. Separately, McDonald’s rolled out to all U.S. stores its new<br />
Chicken McNuggets, which are made with all white meat. Compared with the original McNuggets, the new version’s four-piece<br />
order has 40 fewer calories, 3 grams less fat and 0.5 grams less saturated fat. (NRN 11/17/03 p1; NDNF 11/19/03 & 12/3/03;<br />
FIR 11/17/03 p7)<br />
McDonald’s will begin selling McKids toys, clothes, videos and books worldwide under a major licensing initiative. The McKids<br />
brand will unify all of the company’s licensed goods under a single brand and is expected to debut in the spring in the U.S.,<br />
Canada, Mexico, Japan, China, Australia, Korea and Taiwan. McDonald’s already sells some toys through licensing<br />
agreements with Hasbro, Mattel and other companies. (NRN 11/24/03 p1; RFM 11/20/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
420
<strong>RISE</strong> COMPANY PROFILE<br />
McDonald’s Corp. plans to consolidate its global media planning and buying with OmniCom Group’s OMD Worldwide. OMD<br />
already had been handling most global media buying, worth an estimated $1.6 billion. In addition, McDonald’s assigned<br />
Publicis Groupe’s Leo Burnett of Chicago to develop a global ad campaign for its Big Mac sandwich. The campaign is<br />
expected to be launched next year. In related news, McDonald’s appointed Kay Napier as senior vice president and chief<br />
marketing officer for McDonald’s Europe. (NDNF 12/2/03 & 12/5/03)<br />
The Orlando International Airport’s new food court is being operated by Select Service Partners. The food court, located in the<br />
center of the main terminal of the Orlando, FL, airport, includes McDonald’s, Sbarro and Krispy Kreme. Next year, the airport<br />
plans to open a Romano’s Macaroni Grill and Fox Sports Bar. (NRN 11/24/03 p24)<br />
McDonald’s is testing waffle-fry vending machines in a very limited test across the country. The machines use pre-cooked,<br />
frozen fries that are cooked in hot air rather than oil and are ready in 45 seconds. An order costs $1.50. The company reports<br />
that its machine at the University of Maryland in College Park is receiving a positive reaction from students. In related news,<br />
McDonald’s will close its four robotic vending units, named “Tiktok Easy Shop” but often referred to as “redbox” machines, in<br />
Washington, DC, following a 15-month test. The 15-ft. high and 12-ft. wide units stocked nearly 200 items, including milk,<br />
cartons of eggs, olive oil, paper towels, toothpaste and pantyhose. Items ranged from $1–$4, with prices roughly in line with<br />
those at nearby c-stores. The four units, believed to be North America’s first fully automatic ministores, were located in<br />
McDonald’s restaurants’ parking lots. McDonald’s said the automated c-stores don’t fit into its long-term growth strategy but<br />
that it will continue to experiment with DVD movie-rental machines, including 12 units in Washington and 10 in Las Vegas.<br />
(FIR 11/3/03 p6 & 11/17/03 p7; NDNF 11/14/03)<br />
McDonald’s Corp. announced that it intends to end its joint venture with Fazoli’s and close its Pret a Manger stores in Japan.<br />
However, the company plans to keep its Chipotle and Boston Market concepts and retain its stake in the Pret concept.<br />
(Restaurant Business Daily News 12/16/03)<br />
McDonald’s expects to see savings of $53.8 million per year in Europe by using a supply chain system from Manugistics. The<br />
system does daily reads of each restaurant’s sales and converts the information into theoretical inventory. The system then<br />
analyzes how much inventory a restaurant will need in the future. It is used in the U.S. for limited supply items featured in<br />
special promotions. In the U.S., prior to using the system, only 45% of the 12,100 participating restaurants remained in stock<br />
during a 28-day promotion but following implementation of the supply chain system, 90% remained in stock throughout the<br />
promotion. In France and Germany, participating restaurants realized a 30% reduction in raw-item waste and cut inventories<br />
by 30%. (SN 11/17/03 p38)<br />
Burger King’s french fries have a higher combined level of trans fatty acids and saturated fats than those from McDonald’s or<br />
Wendy’s, according to Consumer Reports’ November issue, which compares the three largest burger chains’ fries. A mediumsized<br />
serving of Burger King’s fries has 11 combined grams of the two fats, compared to 7.5 grams at Wendy’s and 10 grams<br />
at McDonald’s. McDonald’s had said that it would cut trans fats in its fries by nearly 50% by early 2003, but it now says that it<br />
has no timeframe and is continuing its ongoing tests in good faith. Wendy’s and Burger King say they are considering<br />
alternative oils. Consumer Reports noted that lower-trans-fat oils “are not yet available in quantities needed by fast-food<br />
chains.” (NDNF 11/10/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
421
Metromedia Restaurant Group<br />
Headquarters<br />
6500 International Pkwy., Plano, Texas 75093 USA<br />
Tel: (972) 588 5000 Fax: (972) 588 5653<br />
www.metrogroup.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Bennigan's<br />
Ponderosa/Bonanza<br />
Steak and Ale<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,477,500 1,347,500 -<br />
Company-owned ($000) 791,000 756,000 -<br />
Franchised ($000) 686,500 591,500 -<br />
U.S. Number of Units 905 821 -<br />
Company-owned 393 388 -<br />
Franchised 512 433 -<br />
International Sales ($000) 115,000 122,500 -<br />
International Units 94 94 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Metromedia Restaurant Group is the 23rd largest U.S. restaurant company as ranked in the 2001 <strong>Technomic</strong> Top 100 Report.<br />
Its holdings operate worldwide in two segments: upscale/casual-dining and midscale/steak.<br />
Metromedia's presence in the industry began in 1988 with the acquisition of the Ponderosa brand. The following year it<br />
acquired Bonanza as well as S&A Restaurant Corp., parent to Steak and Ale and Bennigan's. In 1995, it adopted the name<br />
Metromedia Restaurant Group.<br />
An affiliate of Metromedia Co., its other business ventures include holdings in technology and telecommunications,<br />
entertainment and manufacturing and distribution industries.<br />
In Spring 2003, Metromedia announced it sold three of its brands—Bonanza, Ponderosa, and Steak and Ale—to Apex<br />
Steakhouse Acquisition Partners. Though terms of deal were not disclosed, Metromedia continues to operate Bennigans. The<br />
sale is subject to approval of a number of conditions, one being financing.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
422
Personnel |<br />
Jeff Moody, Chief Financial Officer<br />
Gene Caldwell, Chief Financial Officer<br />
Steve Welsh, Director of Marketing<br />
Matt Diana, Vice President of Purchasing<br />
Steve Welsh, Director of Marketing<br />
Michael Kaufman, President<br />
Ted Beaman, Vice President of Finance<br />
John Beck, Vice President of Marketing<br />
David Sonzogni, <strong>Menu</strong> Development/R&D<br />
Janet Smith, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Metromedia Restaurant Group is selling its Bonanza, Ponderosa and Steak and Ale chains to focus on its 305-unit Bennigan’s<br />
brand. Acquiring the nearly 550 units is Apex Steakhouse Acquisition Partners of Irving, TX. Terms of the deal were not<br />
disclosed by the two private companies. The sale includes 69 Bonanza and 412 Ponderosa restaurants, most of which are<br />
franchised, and the 66 Metromedia-owned units of Steak and Ale. Apex is headed by Mark Bromberg, a veteran of East Side<br />
Mario’s, and John Todd, a former Gateway Computers executive. Upon completion of the sale, Doug Barber, president of<br />
Metromedia Family Steakhouse, and Bill Spae, president of Steak and Ale, will join Apex Restaurant Group. The Family<br />
Steakhouse group includes the Bonanza and Ponderosa brands. Metromedia Restaurant Group said that the sale of the three<br />
concepts will allow it to be more focused on its casual-dining Bennigan’s Irish American Grill & Tavern brand. (NRN 3/24/03<br />
p1)<br />
Metromedia Restaurant Group will sell its Bennigan’s chain to Apex Restaurant Group, which agreed in March to acquire<br />
Metromedia’s Bonanza, Ponderosa and Steak and Ale chains. Terms of the deal were not disclosed. Apex owners Mark<br />
Bromberg and John Todd will serve as chairman and chief executive, respectively, of the new MGR-Apex management. As of<br />
the end of 2002, the Bennigan’s Irish-American Grill and Tavern system had 285 restaurants, of which 110 were franchised.<br />
The four brands being acquired by Apex represent nearly 800 restaurants. Apex also manages the Left at Albuquerque,<br />
Semolina, Harrigan’s and the new CJ’s Roadhouse chain concepts. (NDNF 9/8/03)<br />
CJ’s Roadhouse owner Pinnacle Restaurant Group plans to open several more of the casual restaurants within the next six<br />
months in Texas and Oklahoma. Signature offerings include flame-roasted chicken, barbecued beef ribs, sandwiches and<br />
salads. The concept is being run by Apex Restaurant Group, which recently purchased Metromedia Restaurant Group’s<br />
Ponderosa, Bonanza and Steak and Ale brands and most recently, its Bennigan’s brand as well. Pinnacle also owns the<br />
Harrigans Chop House Grill chain, which filed for Chapter 11 bankruptcy protection earlier this year. (R&I 8/1/03 p13)<br />
Metromedia Restaurant Group’s intended buyers revised the deal following an announcement last March that they would<br />
acquire Steak and Ale, Ponderosa and Bonanza. Instead, investors Mark Bromberg and John Todd, the principals in Apex<br />
Restaurant Group LP of Irving, TX, bought an unspecified minority stake in MRG and assumed management of the company,<br />
which operates and franchises 836 units, including the Bennigan’s chain. Majority control is retained by Metromedia Co. of<br />
New Jersey. Bromberg, who founded the East Side Mario’s Italian chain and is now chairman of MRG, said that the brands will<br />
have new capital and that the executive team will work to reinvent and reinvigorate the brands and also to possibly grow them.<br />
Todd, the former chief financial officer of Gateway Computer, is MRG’s chief executive. (NRN 9/15/03 p3 & 9/22/03 p5; RB<br />
10/1/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
423
Mexican Restaurants<br />
Headquarters<br />
1135 Edgebrook, Houston, Texas 77034-1899 USA<br />
Tel: (713) 943 7574 Fax: (713) 943 8554<br />
www.mexicanrestaurants.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 103,450 105,352 -<br />
Company-owned ($000) 58,700 61,852 -<br />
Franchised ($000) 44,750 43,500 -<br />
U.S. Number of Units 83 83 -<br />
Company-owned 50 50 -<br />
Franchised 33 33 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Mexican Restaurants owns, operates and franchise full-service restaurants under a variety of names including Casa Olé,<br />
Monterey’s Little Mexico, Monterey’s Tex-Mex Cafe, Tortuga Coastal Cantina and La Senorita. All of them specialize in Tex-<br />
Mex and Mexican cuisines for both lunch and dinner.<br />
The restaurants appeal to a broad-based market with their moderately priced fare. The majority of menu items are made from<br />
scratch each day, including such items as guacamole salad and an avocado sauce. For both the traditional Mexican and Tex-<br />
Mex menu items, national and local taste preferences are used.<br />
Unit designs are flexible to accommodate specific sites whether they be freestanding, malls or strip centers, ranging in size<br />
from 4,000–5,600 sq. ft. and seating some 180. Stucco, tile floors, plants, and a variety of colors are used to create a<br />
Mexican/Southwestern ambiance.<br />
Purchasing is handled centrally for company-owned as well as many of the franchised units.<br />
Casa Olé was founded in 1973 by Larry Forehand. In late 1994, the company retained Tex-Mex as operational and financing<br />
advisors and in 1995, its principals took over day-to-day control with Forehand remaining as vice chairman. In early 1996, the<br />
company organized as Casa Olé Restaurants, Inc. and an initial public offering was made. In 1997, it acquired Monterey’s<br />
Tex-Mex Cafe restaurants from Monterey Acquisition Corp. The $11 million deal also included three units operating as<br />
Tortuga’s Cantinas. In 1999, not only did the company change its corporate name to Mexican Restaurants, Inc. in an effort to<br />
better reflect the broadening nature of its chain brands, but it also acquired La Senorita Restaurants for some $4 million.<br />
Recently, Mexican Restaurants has focused on improving operations.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
424
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Casa Olé —signature item: fajitas made with a special seasoning, rather than a marinade, to enhance meat flavor. Also<br />
traditional Mexican items such as enchiladas and tacos as well as entrees such as Seafood Chimichanga—mixture of crab<br />
and whitefish, deep fried and topped with creamy white sauce or Carne Guisada—combination of braised beef tips and<br />
potatoes in gravy, soups, salads and desserts. <strong>Menu</strong> Prices: $4.99–$15.95. Check Averages: $9.<br />
Franchise Activity |<br />
Mexican Restaurants Inc. agreed to acquire 13 restaurants in Beaumont, TX from franchisees Thomas Harken and Victor<br />
Gonzalez. (NRN Daily NewsFax 9/29/03)<br />
Mexican Restaurants Inc. acquired 13 restaurants for $13.75 million from franchisees Thomas Harken and Victor Gonzalez.<br />
The restaurants included 10 Casa Ole units and three Crazy Jose units. (NRN Daily NewsFax 1/9/04)<br />
Personnel |<br />
Curt Glowacki, Chief Executive Officer<br />
Andrew Dennard, Chief Financial Officer<br />
Louis Neeb, Chairman<br />
Dennis Vegas, Director of Marketing<br />
Gerry Wetmore, Vice President of Operations<br />
Lou Porry, Vice President of Operations<br />
Rodney McCall, Director of Purchasing<br />
News & Other |<br />
Mexican Restaurants Inc. for the third quarter ended September 28, reported revenues increased 0.3% to $15.2 million<br />
compared to the same quarter last year. Systemwide same-store sales decreased 2.8%. Same-store sales decreased 3.3% at<br />
company-owned units and 2.2% at franchised units. (NRN Daily NewsFax 11/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
425
Miami Subs Grill<br />
Headquarters<br />
6300 N.W. 31st Ave., Ft. Lauderdale, Florida 33309 USA<br />
Tel: (954) 973 0000 Fax: (954) 973 0159<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 98,500 106,000 110,000<br />
Company-owned ($000) 3,500 6,000 10,000<br />
Franchised ($000) 95,000 100,000 100,000<br />
U.S. Number of Units 114 135 128<br />
Company-owned 4 5 8<br />
Franchised 110 130 120<br />
International Sales ($000) - 5,000 5,000<br />
International Units - 9 9<br />
Average Sales/Unit ($000) 800 896 1,249<br />
Concept Positioning |<br />
Miami Subs operates and franchises quick-service restaurants that feature an extensive selection of moderately priced foods<br />
for lunch, dinner and snacks. It is designed to attract a broad customer base.<br />
Units are typically open from 10:30 a.m.–2 a.m., seven days a week. Customers order from a walk-up counter. Each receives<br />
a number and beverage cup for use at a self-service beverage bar. Drive-through service is also available at most of the units<br />
and accounts for approximately 45% of sales.Units are for the most part freestanding and as development was largely through<br />
conversion of existing properties, they vary in size from 2,000–5,000 sq. ft. Each is brightly lit and features an exterior<br />
highlighted with pink and blue neon and an interior decorated in a tropical motif.<br />
Parent Nathan’s Famous has also started an active co-branding program for Miami Subs. Currently, there are approximately<br />
102 such units, called "Miami Subs Plus," these units feature a co-branded menu composed of Nathan's, Kenny Rogers<br />
Roasters or Arthur Treacher's signature offerings.<br />
Miami Subs has also begun development of nontraditional units such as its operations at the Fort Lauderdale-Hollywood (FL)<br />
International Airport.<br />
Miami Subs dates back to the early 1980's but was incorporated in 1990 by Gus Boulis to serve as a holding company for the<br />
acquisition of QSR. QSR was principally involved with the sale, development and franchising of the Miami Subs concept in<br />
Florida. The acquisition was completed in October 1991. In early 1992, an initial public offering was made. In November 1998,<br />
Boulis sold his interest in the company to Nathan's Famous, Inc., and that followed with a total merger in 1999.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: grilled chicken on pita bread, cheese steak subs and gyros on pita bread. Also features made-to-order hot<br />
and cold submarine sandwiches, Greek salads, flame grilled hamburgers and chicken breasts, chicken wings and fresh salads<br />
as well as ice cream and other desserts. Beverages include soft drinks, iced tea and coffee. Beer and wine are available.<br />
<strong>Menu</strong> Prices: $1.49–$5.29. Check Averages: $4.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
426
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Miami Subs launched a new line of Pita Grillers. The sandwiches feature fresh meats, vegetables and sauces on a toasted<br />
and grilled sandwich. Priced at $3.79 alone or $4.99 as part of a combo, offerings include: ■ Pita Club—fresh roasted sliced<br />
turkey, bacon, lettuce, tomato and mayonnaise ■ Pita Cubano—a pork-based sandwich seasoned with a signature sourorange<br />
mayonnaise ■ Tuscan Deli—a mix of deli meats grilled with roasted red peppers and onions, then sprinkled with<br />
Tuscan herbs. (Company Release 10/27/03)<br />
News & Other |<br />
Miami Subs Grill has introduced three grilled pita sandwiches systemwide. The Pita Club, Pita Cubano and Tuscan Deli are<br />
priced at $3.79 and $4.99 for a combo, which includes fries and a 20-oz. soda. The 99-unit chain is owned by Nathan’s<br />
Famous Inc. (NRN 11/24/03 p40; FIR 11/10/03 p7)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
427
Mimi's Cafes<br />
Headquarters<br />
17852 E. 17 St. South Building Suite 108, Tustin, California 92780 USA<br />
Tel: (714) 544 4826 Fax: (714) 544 7663<br />
www.mimiscafe.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 200,000 168,000 142,000<br />
Company-owned ($000) 200,000 168,000 142,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 66 57 49<br />
Company-owned 66 57 49<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,300 3,200 2,897<br />
Concept Positioning |<br />
Mimi’s Café is a chain of family-oriented restaurants positioned within the casual dining segment and styled after the cafes of<br />
Paris and New Orleans. Open for breakfast, lunch and dinner, its largest day part is dinner, which accounts for nearly half its<br />
unit volume.<br />
All freestanding, Mimi’s units average 6,500 sq. ft. with seating for around 200–225. Ambience is created though the use of<br />
striped awnings, bright curtains, checkered tablecloths and tiles, used brick and brass and iron artifacts.<br />
In mid-1996, the company undertook a remodeling program to update its look and broaden its customer appeal. These stores<br />
have antique stone floors, brick walls, wood floors and beamed ceilings and the heavy use of pastel color schemes in the<br />
various dining rooms was changed to the use of earth tones with primary color accents. The results generated increased sales<br />
of 10-15%. New unit construction also features this more rustic/masculine look and feel.<br />
Mimi's targets cities and sites only that share its customers' demographics: 35–64-year-old couples in suburban surroundings.<br />
In its recent expansion push, it has shifted away from its previous female-customer focus to a broader customer base.<br />
The first Mimi's opened in Anaheim, CA, in 1978. It was named after co-founder Arthur Simms’ love from World War II, a<br />
French girl named Mimi. Simms and son, Tom, along with partners Paul Kurz and Brian Taylor, developed the concept some<br />
30 years later and modeled it after the French Quarter in West Hollywood, CA. In 1994, the chain brought on an equity partner<br />
and debt in order to grow without franchising. Since its initial expansion plans in 1994, Mimi's has experienced 20% growth<br />
each year.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
428
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Broad-based menu featuring 70-80 items. Entree salads include Chinese Chicken with breast of chicken, romaine, green<br />
onions, cilantro, rice sticks and won ton noodles tossed with sesame oil and vinegar dressing. Sandwiches and burgers range<br />
from 5 Way Grilled Cheese to Warm Turkey Focaccia. Also menued soups, pastas, chicken, beef, pork and fish entrees such<br />
as Pot Roast, Pasta Jambalaya and Chicken and Vegetable Stir Fry. Signature desserts: New Orleans Bread Pudding served<br />
warm with whiskey sauce and whipped cream and Café Maui Pie–slab of vanilla ice cream between two layers of rich<br />
chocolate cake drizzled with hot fudge and whipped cream. Brunch and breakfast items range from omelettes and eggs to<br />
pancakes, breads and specialty coffees. Beer and wine also available. <strong>Menu</strong> updated regularly to keep fresh. <strong>Menu</strong> Prices:<br />
$4.75–$12.95. Check Averages: $10.<br />
Expansion Plans |<br />
Mimi’s Café expects to debut units in Florida, New Mexico, Kansas and Oklahoma in 2003. The Oklahoma unit has a planned<br />
opening in November. (Nation’s Restaurant News 9/22/03 p54)<br />
Personnel |<br />
Tom Simms, Chairman<br />
Russ Bendel, President<br />
Ed Bartholemy, Chief Financial Officer<br />
Ira Fils, Vice President of Finance<br />
Jeanne Turner, Director of Marketing<br />
News & Other |<br />
Mimi’s Café president Russ Bendel was named MUFSO Operator of the Year at the Multi-Unit Foodservice Operators<br />
conference in Atlanta. Bendel, a former Outback Steakhouse franchisee and president of its Roy’s division, joined 73-unit<br />
Mimi’s Café in 2001. (NDNF 9/24/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
429
Montana Mike's Steakhouse<br />
Headquarters<br />
2908 N. Plum, Hutchinson, Kansas 67502 USA<br />
Tel: (316) 669 9372 Fax: (316) 669 0531<br />
www.montanamikessteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 18,400 14,200 7,000<br />
Company-owned ($000) 4,300 2,400 1,000<br />
Franchised ($000) 14,100 11,800 6,000<br />
U.S. Number of Units 14 11 7<br />
Company-owned 3 2 1<br />
Franchised 11 9 6<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,300 1,300 999<br />
Concept Positioning |<br />
Montana Mike's is a full-service steakhouse specializing in naturally aged, hand-cut steaks. The atmosphere of a Rocky<br />
Mountain lodge is carried through in both décor and menu at Montanan Mike’s Steakhouse. The rustic interior is matched with<br />
a steak and fish menu reflective of the mountain region.<br />
The first Montana Mike's was open in 1998 in Miami, OK. Stockade Companies, Inc. is the parent company.<br />
<strong>Menu</strong> Positioning |<br />
The basic menu that includes ribs, grilled chicken, catfish, chicken fried steak and naturally aged steaks. The menu also<br />
includes two steaks for big eaters – a 44-ounce steak called the Montana 44, and the Three’s Company steak, which is 66<br />
ounces.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
430
Morton's of Chicago<br />
Headquarters<br />
3333 New Hyde Park Rd., New Hyde Park, New York 11042 USA<br />
Tel: (516) 627 1515 Fax: (516) 627 1898<br />
www.mortons.com<br />
Ownership: Private<br />
Segment: Full Service Steak - Fine Dining<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Bertolini's Authentic Trattoria<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 211,472 206,781 236,842<br />
Company-owned ($000) 211,472 206,781 236,842<br />
Franchised ($000) - - -<br />
U.S. Number of Units 60 56 53<br />
Company-owned 60 56 53<br />
Franchised - - -<br />
International Sales ($000) 12,933 13,082 11,540<br />
International Units 5 6 4<br />
Average Sales/Unit ($000) 3,800 3,800 4,468<br />
Concept Positioning |<br />
Morton's Restaurant Group owns and operates Morton's of Chicago, high-end, steak-oriented dinner houses. Operating as<br />
Morton's of Chicago or Arnie Morton's of Chicago, the chain serves only U.S.D.A. prime aged beef. Also many of its menu<br />
items are prepared by servers at the table. The chain has been given critical acclaim as one of the best steakhouse chains in<br />
the U.S.<br />
Its primary appeal is to the business-oriented customer, and thus, provides a private, club-like surrounding for dinner service,<br />
seven days a week. (Currently, seven units are open for lunch and dinner.)<br />
Similar in style and decor, the restaurants are located in retail, commercial and office building complexes in major metropolitan<br />
markets. A feature of each unit is an open display kitchen. Almost all the units also have "Boardrooms," private dining room<br />
facilities for special events or advanced meeting reservations. These rooms account for approximately 19% of sales at these<br />
locations.<br />
Its beef is purchased from a centralized source and the company considers itself one of the largest customers of its beef<br />
suppliers—all producing Midwest-bred, grain-fed and aged product. This has given it a significant cost and availability<br />
advantage over many independent restaurants.<br />
The first Morton's was opened by Arnie Morton in 1978 in the Near North area of Chicago. Morton’s Restaurant Group<br />
acquired the operation in May 1989.<br />
The company was organized by Allen J. Bernstein, chairman, president, and chief executive officer, and others in October<br />
1988. In December of that same year, it acquired Mick's and Peasant Restaurants; those holdings were sold in early 1997.<br />
The Morton's chain was acquired in 1989 and the current corporate name adopted in 1996.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
431
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item prime aged beef including 24-oz. porterhouse, 20-oz. New York sirloin, 16-oz. rib eye and 14-oz. filet mignon.<br />
Best sellers: 24-oz. porterhouse and 20-oz. sirloin steaks (both $28.95). Largest steak—48-oz. double porterhouse. Also<br />
menus fresh fish, lobster, chicken and veal. Lunch menu includes variety of appetizers such as Broiled Sea Scallops Wrapped<br />
in Bacon, Sautéed Wild Mushrooms and soup of the day; salads, entree salads and sandwiches as well as specialties such as<br />
Tenderloin Medallions al Forno and Chicken Christopher (sautéed chicken breast dusted with garlic and shallot bread<br />
crumbs). Full liquor service; some 32% of sales. Wine list offers 175 premium selections. <strong>Menu</strong> Prices—Lunch: $3.95–$18.95.<br />
Check Averages: $72.75<br />
<strong>Menu</strong> Development |<br />
Steak sandwiches give operators a chance to cross-utilize any excess meat from cut-down steak portions. Lovell’s of Lake<br />
Forest in the Chicago suburbs serves a New York strip loin with crispy onions on grilled Tuscan bread. The sandwich is topped<br />
with garlic-infused mayonnaise and served with three side dishes that vary by season, such as a tomato and onion salad with<br />
coleslaw and three-bean salad. The strip loins are trimmed from excess on the 14-oz. New York strip offered on the dinner<br />
menu. In Atlanta, The Café at the Ritz-Carlton-Buckhead serves a 7-oz. grilled New York strip sandwich that utilizes trimmings<br />
from the entrée size dinner portions. The sandwich is served on warm sesame bread with tapenade, deglazed red onions and<br />
shiitake mushrooms and Swiss cheese. Morton’s of Chicago has also recognized the opportunity. The chain has been serving<br />
complimentary petite filet mignon sandwiches in its front bars from 5 p.m. to 7 p.m. for more than a year. (Nation’s Restaurant<br />
News)<br />
Personnel |<br />
Allen Bernstein, Chairman<br />
Thomas Baldwin, Chief Financial Officer<br />
John Bettin, President<br />
Ron DiNella, Vice President of Finance<br />
Kevin Weinert, Vice President of Operations<br />
Rick Webber, Vice President of Marketing<br />
Peggy DeNapolis, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
432
Mr. Gatti's<br />
Headquarters<br />
444 Sidney Baker St., Kerrville, Texas 78028 USA<br />
Tel: (830) 257 2000 Fax: (830) 896 5150<br />
www.mrgattis.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 106,000 122,000 102,000<br />
Company-owned ($000) 20,000 22,000 19,000<br />
Franchised ($000) 86,000 100,000 83,000<br />
U.S. Number of Units 156 165 160<br />
Company-owned 28 35 30<br />
Franchised 128 130 130<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 550 570 633<br />
Concept Positioning |<br />
Mr. Gatti's pizza restaurants are family-oriented, self-service operations open for lunch and dinner. The pizzas use 100% real<br />
smoked provolone cheese and a special pizza sauce concentrate, made by suppliers to specifications of Mr. Gatti's. A<br />
proprietary crust recipe is prepared fresh daily in all units. The primary customer base is young adults and families.<br />
Carryout and home delivery are also available, in certain markets that guarantees on-time delivery or the order is free, through<br />
its own one-phone-number ordering system which allows customers anywhere in a metropolitan area to call a single number<br />
and have the order routed to the nearest location.<br />
Sit-down restaurants range from 3,200–25,000 sq. ft., with a seating capacity averaging 120–500 people. Interiors feature a<br />
family dining area containing a large screen TV, a Garden room for quiet adult dining and a Good Times room with large<br />
screen TV for special events and group functions. Some 25% include "GattiTown," a family-oriented entertainment center with<br />
video games, virtual adventures, and rides for small children. Larger units have additional rooms or areas available for private<br />
parties that can host groups of 10 to 100+. A smaller takeout and delivery unit, without seating, is also operational.<br />
The business was founded in 1969 in Austin, TX. Parent LDB Corp. acquired it in 1978. In October 1991, LDB Corp. filed for<br />
Chapter 11 bankruptcy and emerged after a 100% repayment of bill to its creditors. Management led a buyout in 1994 and<br />
took the company private.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
433
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: line of 10-, 12- and 14-in. pizzas offered with 16 different toppings, specialties include vegetarian black bean<br />
pizza and barbecue chicken pizza; Pan pizza, spaghetti, lasagna, salads and desserts such as Dutch Apple Treat Pizza,<br />
Coconut Creme Pizza, and Chocolate Creme Pizza ($3.99-$6.99) also menued. FASTFEAST buffet, featuring salads in<br />
addition to "Spagatti" and pizza accounts for some 50% of sales. Rolled out Pan Perfect with new crust—Crust d'licious; a pan<br />
pizza with crust that needs 50% less oil for baking; crust is crispier and less greasy. Beer served at most units. <strong>Menu</strong> Prices:<br />
$6.99–$16.99. Check Averages: around $8.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
434
Mrs. Fields<br />
Headquarters<br />
2855 E. Cottonwood Pkwy., Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 115,000 118,000 116,000<br />
Company-owned ($000) 35,000 41,000 39,000<br />
Franchised ($000) 80,000 77,000 77,000<br />
U.S. Number of Units 446 463 448<br />
Company-owned 102 143 126<br />
Franchised 344 320 322<br />
International Sales ($000) 21,500 20,500 20,000<br />
International Units 81 74 72<br />
Average Sales/Unit ($000) 280 285 309<br />
Concept Positioning |<br />
Mrs. Fields is a chain of retail bakery units selling a variety of cookies, brownies, muffins and candies as well as beverages.<br />
Units are located in malls and high-traffic strip shopping centers and decorated in red and white. Ranging in size from 350 to<br />
800 sq. ft., the units utilize their limited space by displaying sheets of cookies and brownies behind glass counters. There is no<br />
seating, nor are stand-up counters available.<br />
The company has also entered into a number of license agreements to produce and sell Mrs. Fields products in stores owned<br />
and operated by others as well as market a line of Mrs. Fields chocolate chips. Another version of the bakery is for in-store<br />
development in large supermarket chains. In mid-2001, the chain teamed with Wal-Mart, entering into an agreement calling for<br />
the development of co-branded stores in some of the retailer's super centers.<br />
Debbi Field opened her first cookie store in an international food arcade in Palo Alto, CA, in 1977. International expansion<br />
began in 1984. In 1996, an investor group led by Capricorn Investors, through its Mrs. Fields’ Holding Company, Inc., formed<br />
Mrs. Fields' Original Cookies, Inc. as part of a merger with Midial S.A.'s U.S. foodservice holdings that included the Hot Sam,<br />
Corn Dog on a Stick and The Original Cookie Co. chains. In 1998, its parent acquired three additional chains: Great American<br />
Cookies, Pretzel Time and Pretzelmaker. In 2000, Mrs. Fields, through a management agreement, assumed the corporate and<br />
administrative functions of TCBY, also owned by parent Capricorn Investors.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: line of gourmet cookies. Also features brownies, muffins, candies and beverages. Introducing bagels and other<br />
baked goods as well as Seattle's Best Coffee. <strong>Menu</strong> Prices: $4.59–$5.59 per lb.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
435
Mrs. Winner's Chicken & Biscuits<br />
Headquarters<br />
5995 Barfield Rd., Atlanta, Georgia 30328 USA<br />
Tel: (404) 459 5800 Fax: (770) 671 9855<br />
www.winners-international.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 93,000 99,000 114,000<br />
Company-owned ($000) 67,000 71,500 83,000<br />
Franchised ($000) 26,000 27,500 31,000<br />
U.S. Number of Units 120 131 153<br />
Company-owned 85 96 111<br />
Franchised 35 35 42<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 740 750 747<br />
Concept Positioning |<br />
Mrs. Winner's Chicken & Biscuits is a chain of fast-food chicken restaurants. Units have sit-down, carryout, and drive-thru<br />
services for breakfast, lunch and dinner. Precut chickens (into eight pieces) are used and open-vat fried. Once cooked, the<br />
chicken is held no longer than one hour. Excess cooked chicken is used in the chicken potpie entree barbecue sandwich.<br />
Units are brightly colored red and yellow. Four different sizes are used: a small, 32-seat, labor-efficient unit for an urban<br />
location; a medium-sized, 60-seat unit; a mini-unit that provides walk-in/drive-up service only; and an upscale, 90–100-seat<br />
unit for a suburban location. The upscale unit has a boardinghouse-style exterior with gables and a perimeter porch.<br />
In late 1995, it began a dual-branding program with Del Taco, a quick-service Mexican brand.<br />
The chain dates back to the 1970s when it was called "Granny's Fried Chicken." By 1982, the current name had been<br />
adopted. RTM Restaurant Group acquired it in 1989. In early 2000, RTM sold its controlling interest to Winners International, a<br />
strategic partnership with RTM and BancBoston Development Co. Winners International also owns the Lee’s Famous Recipe<br />
chain. RTM retained a 20% stake in the new company. However, in 2002, RTM rolled Winners International operations under<br />
Arby's operations leadership.<br />
<strong>Menu</strong> Positioning |<br />
Features fried chicken served as dinners or by the piece. Other items include country-fried steak and gravy dinner, pot pies,<br />
chicken filet, BBQ sandwiches, baked beans, biscuits and whipped potatoes. Desserts include assorted pies. Breakfast<br />
biscuits available in 15 varieties including sausage, ham, bacon or country-fried steak; some 40% of sales. Check Averages:<br />
$4.50<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
436
Personnel |<br />
Bill Duffy, Vice President of Finance<br />
Jack Odachowski, Vice President of Operations<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
RTM Restaurant Group is halting all co-branding initiatives to focus on its Arby’s core brand. Arby’s largest franchisee with 789<br />
units in 22 states, RTM is opting for the single-brand approach due in part to Arby’s expanded menu strategy with its premium<br />
MarketFresh deli sandwich line and the new Bistro line of sandwiches now in test. Such options eliminate customers’ veto<br />
vote, according to RTM management, since Arby’s isn’t just a place for roast beef anymore. The company recently halted its<br />
eight-year-old experiment with dual-branding Mrs. Winner’s and Del Taco. It had planned to dual-brand the entire Mrs.<br />
Winner’s chain. Remaining co-branded stores are four Arby’s/Mrs. Winner’s as well as 16 Arby’s-Sbarro units and 43<br />
Arby’s/T.J. Cinnamons in several markets. Those units still in operation will be evaluated based on revenues and profit on an<br />
individual basis. The dual Arby’s/Mrs. Winner’s are in RTM’s home base of Atlanta and most of the Arby’s/Sbarro units are in<br />
Minnesota. Separately, RTM plans to open at least 35 new Arby’s annually through 2009 and to remodel 15–20 restaurants<br />
per year. (NRN 7/14/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
437
Muer Seafood Restaurants<br />
Headquarters<br />
400 Galleria Officentre P.O. Box 5116, Southfield, Michigan 48086 USA<br />
Tel: (248) 372 2100 Fax: (248) 372 2113<br />
www.muer.com<br />
Ownership: Private<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 58,000 60,000 -<br />
Company-owned ($000) 58,000 60,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 15 16 -<br />
Company-owned 15 16 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,950 3,900 -<br />
Concept Positioning |<br />
Muer Seafood Restaurants is the operator of 16 fine- and casual-dining seafood restaurants. Its concepts include Charley's<br />
Crab, Big Fish, Grand Concourse, Chuck & Harold's, River Crab, Meriwether's, Pal's and Gandy Dancer. Concepts are<br />
scattered throughout the country.<br />
Charley's Crab, the most numerous and well known, is located in Michigan, Florida, Ohio and South Carolina. Units are<br />
generally located along water-front venues and feature nautical décor, ranging from soft colors to jellyfish chandeliers, as<br />
found at its Troy, MI restaurant. Two restaurants are located in renovated train stations. Group seating is available at most<br />
units, with seating for 25–50.<br />
C. A. Muer Corp. was founded in 1964 with the opening of the first Charley's Crab. In February 2002, Landry's Restaurants,<br />
Inc., the parent company of such concepts as Joe's Crab Shack and Rainforest Café, acquired Muer for $28 million.<br />
<strong>Menu</strong> Positioning |<br />
Charley's Crab—<strong>Menu</strong>s an extensive variety of seasonal fresh fish, shrimp and other seafood specialties. Features appetizers<br />
such as oysters, crabcakes and tuna nicoise. Entrees range from shrimp pizza to potato encrusted salmon. Sunday brunch<br />
available at most locations. Full liquor service available, accouting for approximately 17% of total revenues. <strong>Menu</strong> Prices:<br />
$8.99–$32.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
438
Nathan's Famous<br />
Headquarters<br />
1400 Old Country Rd., Westbury, New York 11590 USA<br />
Tel: (516) 338 8500 Fax: (516) 338 7220<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 90,000 82,000 89,000<br />
Company-owned ($000) 10,000 16,000 17,000<br />
Franchised ($000) 80,000 66,000 72,000<br />
U.S. Number of Units 227 212 198<br />
Company-owned 14 17 18<br />
Franchised 213 195 180<br />
International Sales ($000) - 1,000 1,000<br />
International Units - 2 2<br />
Average Sales/Unit ($000) 600 730 944<br />
Concept Positioning |<br />
Nathan's Famous is a chain of fast-food restaurants open for breakfast, lunch and dinner. The company also operates a<br />
catering service at some locations and, to a limited extent, derives income from the leasing of properties. It also markets a line<br />
of packaged meat products in retail food stores. Food is ordered centrally and then delivered to local units.<br />
Store sizes and designs vary from 300–4,000 sq. ft., although its Coney Island unit in Brooklyn and its Central Park Avenue<br />
store in Yonkers, NY, are both 10,000 sq. ft. Its typical food court units share seating with others in the setting. In-line or<br />
freestanding prototypes have seating for 45–125 patrons. Units generally are decorated in bright colors. Brass fixtures and<br />
stained glass windows of scenes of old Coney Island, New York create the ambience. Food is dispensed from stand-up<br />
counters to be taken out or eaten on-premise from paper plates with plastic utensils.<br />
In recent years, the chain has expanded to mall locations as well as through freestanding units. Still other locations are<br />
nontraditional sites such as turnpike and airport restaurants as well as Amtrak trains. The company also has been active in cobranding<br />
programs that include such names as KFC, Pizza Hut, Taco Bell, Dunkin’ Donuts, TCBY, Burger King, Kenny Rogers<br />
Roasters, Miami Subs, Baskin-Robbins and Arthur Treacher's Fish and Chips.<br />
In late 1998 through a master development agreement, its first Nathan’s Kosher was opened. Nathan and Ida Handwerker<br />
opened a frankfurter stand on Surf Avenue in the Coney Island section of Brooklyn in 1916, and the company was<br />
incorporated in 1925. In early 1993, an initial public offering was completed. In late 1998, the corporation acquired some 30%<br />
of the stock of Miami Subs Corp. for $4.2 million and in early 1999, acquired the remaining shares. About the same time, the<br />
company received court approval to acquire the Kenny Rogers Roasters chain out of bankruptcy for $1.25 million in cash and<br />
related expenses. That acquisition was completed in April. Current expansion plans call for the development of co-branded<br />
sites internationally and in New York and Southern Florida.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
439
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: Coney Island-style all-beef hot dogs and crinkle-cut fries; some 65–70% of sales. Also menued crinkly-cut<br />
fries, seafood, hamburgers, chili and corn-on-the-cob. Some locations serve beer and wine, pizza and deli items such as roast<br />
beef, salami, corned beef and pastrami sandwiches. Check Averages: $5.28.<br />
<strong>Menu</strong> Development |<br />
Nathan’s Famous launched the Big Sloppy. It is a quarter-pound burger topped with Cheddar cheese, ketchup, mayonnaise,<br />
tomatoes, lettuce, onions, pickles and crisp onion rings. A bib is given out with each order. A single is $2.99, while the Great<br />
Big Sloppy with double beef sells for $3.99. The sandwich is a limited-time offer. (Newsday 11/5/03)<br />
International Activities |<br />
Nathan’s Famous is looking to expand internationally, notably in Asia. In October, the company opened its first unit in China.<br />
Overall, it is opening 20–25 restaurants a year. Sales from branded products, such as its hot dogs, have helped the chain<br />
maintain sales growth of approximately 30% per year. (RB 10/15/03 p42)<br />
Nathan’s Famous Inc. opened its first restaurant in Tokyo. The unit was opened by franchisee Nathan’s Famous Franchisee of<br />
Japan Inc. which has master franchise rights to develop the Nathan’s brand throughout Japan. (NRN Daily NewsFax 12/22/03)<br />
News & Other |<br />
Nathan’s Famous is including Arthur Treacher’s items in about 45 of its restaurants. Nathan’s, which owns the co-branding<br />
rights to Arthur Treacher’s, says the additional menu items have become a “substantial part of the sales mix.” The company is<br />
also placing Kenny Rogers Express venues in some Nathan’s restaurants primarily located in New York. (RB 10/15/03 p49)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
440
National Sports Grill<br />
Headquarters<br />
997 Grandy's Lane, Lewisville, Texas 75077 USA<br />
Tel: (972) 317 8000 Fax: (972) 317 8177<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 12,220 12,751 15,376<br />
Company-owned ($000) 12,220 12,751 15,376<br />
Franchised ($000) - - -<br />
U.S. Number of Units 5 5 6<br />
Company-owned 5 5 6<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,444 2,550 2,562<br />
Concept Positioning |<br />
A casual dining environment and plenty of big-screen TVs would be expected at something called the National Sports Grill,<br />
and those expectations are met. It is an after-work and weekend décor, with the local sports section on the table, an appetizer<br />
and burger approach to food and an open interior that allows patrons to swivel around and find out what’s happening on the<br />
TV across the room. The facilities also features trivia games and pool tables.<br />
<strong>Menu</strong> Positioning |<br />
Hamburgers, appetizers and finger food are the basic menu at National Sports Grill, which also features a full bar. <strong>Menu</strong><br />
Prices: $6.00–$9.00.<br />
News & Other |<br />
Spectrum Restaurant Group has filed for Chapter 11 bankruptcy protection. The company’s 135 outlets include 83 franchised<br />
Grandy’s chicken units, the Spoons casual-dining chain, National Sports Grills, Crabby Bob’s and upscale concepts such as<br />
Prego, Guaymas and Tutto Mare. Spectrum was spun off for $17 million in June 2000 by Stuart Anderson’s Black Angus<br />
parent American Restaurant Group. The split relieved Spectrum of ARG’s estimated debt of $166 million. The company’s<br />
attorney noted that the bankruptcy filing was not debt-related but rather was spurred by “underperforming units,” including 16<br />
that have been closed but for which Spectrum continues to hold leases. Chapter 11 will allow the company to eliminate those<br />
obligations. In addition, Spectrum’s lender has terminated the company’s line of credit as it wishes to exit the restaurant<br />
business. Those factors, along with soft sales, an $8 million investment in new restaurants in recent years and the pay-down<br />
of a term loan from $10 million to $2.1 million, forced the company to seek Chapter 11 protection. (NDNF 8/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
441
Noble Roman's<br />
Headquarters<br />
One Virginia Avenue, Indianapolis, Indiana 46204-3616 USA<br />
Tel: (317) 634 3377 Fax: (317) 636 3207<br />
www.nobleromans.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 87,500 67,500 -<br />
Company-owned ($000) - - -<br />
Franchised ($000) 87,500 67,500 -<br />
U.S. Number of Units 975 775 -<br />
Company-owned - - -<br />
Franchised 975 775 -<br />
International Sales ($000) 1,000 - -<br />
International Units 10 - -<br />
Average Sales/Unit ($000) 100 100 -<br />
Concept Positioning |<br />
Founded in 1972, Noble Roman's has grown into an international provider of pizza at non-traditional locations, such as military<br />
bases, universities and convenience stores.<br />
Products are pre-prepared before being sent to franchisees, who have to input only a minimum amount of labor before<br />
serving. Most require seven minutes or less of total assembly and cooking time. Because the concept can fit into a location as<br />
small as 100 sq. ft., the primary interest in Noble Roman's is that it is an opporunity for add-on sales in a space efficient<br />
design.<br />
In 2002, Noble Roman's debuted its Café-To-Go. This even smaller prototype contains only a refrigerated display unit, two<br />
commercial microwaves and two conveveyor belt pizza ovens. Only twelve feet of floor space is required for the kiosk, which is<br />
also self service.<br />
<strong>Menu</strong> Positioning |<br />
Core menu remains pizza, 7"–14" and breadsticks with dip. Franchisees have options to add other items, such as Buffalo<br />
wings, hot sandwiches and a breakfast menu consisting of biscuits and gravy and cinnamon buns.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
442
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
The Dallas Zoo has opened its first indoor eating place. It is a new food court called The Prime Meridian, which is operated by<br />
local concessionaire Culinaire International. The 12,000-sq.ft. restaurant has 500 seats. The food court features Rio Grande<br />
Burrito Stand; Noble Roman’s Pizza; Hop Along Snacks; Gorilla Grrrill; Love Me Tender, offering chicken items; and Penguin<br />
Parlor for desserts. (NRN 12/1/03 p18)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
443
O'Charley's<br />
Headquarters<br />
3038 Sidco Drive, Nashville, Tennessee 37229-1809 USA<br />
Tel: (615) 256 8500 Fax: (615) 256 8443<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
99 Restaurant & Pubs<br />
Stoney River Legendary Steaks<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 499,912 444,931 361,000<br />
Company-owned ($000) 499,912 444,931 361,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 188 164 139<br />
Company-owned 188 164 139<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,787 2,830 2,597<br />
Concept Positioning |<br />
O’Charley’s are full-service restaurants open seven days a week, serving a broad-based menu for lunch, dinner and Sunday<br />
brunch. The restaurants, which emphasize consistent high-quality food and service, are moderately priced to attract both<br />
young adults and families. Most menu items are prepared on-premise, with its specialty entrees using fresh chicken, seafood<br />
and aged beef.<br />
O'Charley's are typically freestanding old-style red brick buildings around 6,750 sq. ft. in size. Dining areas seat approximately<br />
220, with an additional 70 seats in the bar area. Its neighborhood-themed design has bright red and green neon borders and<br />
multi-colored awnings on the outside to complement the interior ambiance built around warm woods, polished brass, brick and<br />
neon accents, exposed kitchens and hand-painted murals depicting history, events and places indigenous to each site.<br />
A central commissary is maintained to process all meat products, including portion control steaks and ground beef, dressings<br />
and sauces, and bakery products. It also pre-packs spices and works as the distribution center for all units, as well as selling<br />
private-label foodstuffs to grocery chains and warehouse clubs.<br />
The company also owns Stoney River Legendary Steaks. Open for dinner only, the upscale restaurants have a mountain<br />
lodge theme.<br />
O'Charley's was founded in 1983 as a franchise of a barbecue restaurant concept by David K. Wachtel, Jr., a former chief<br />
executive officer of Shoney's, Inc. In May 1984, it acquired the original O'Charley's restaurant in Nashville. In July 1990, the<br />
company went public.<br />
In the early 90's, it acquired a 20% stake in Logan's Roadhouse. In 1995, O’Charley’s assisted taking Logan's public as well as<br />
selling its interest. In May 2000, it announced the acquisition of Stoney River Legendary Steaks, a two-unit Atlanta-based<br />
upscale steakhouse concept.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
444
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
<strong>Menu</strong> contains over 45 items, including prime rib, steaks, chicken, seafood, salads, sandwiches, soups, burgers and pastas;<br />
fresh yeast rolls served with every order. Express lunch offers 13 value-priced salads, sandwiches and combos. Also menus<br />
daily specials. Signature dessert: caramel pie. Continually developing new items. Sunday brunch also offered. Alcoholic<br />
beverages served. <strong>Menu</strong> Prices: $10.95–$15.95. Check Averages: $9.45–$12.32. Stoney River: hand-cut premium steaks,<br />
fresh seafood as well as appetizers, salads, side dishes and unique desserts.<br />
<strong>Menu</strong> Development |<br />
O’Charley’s is capitalizing on approaching warm weather with a limited-time seafood promotion called Beach Party 2003.<br />
Promotional items were designed to showcase the flavors and foods often associated with the ocean, according to a company<br />
spokesman. Offered through April 20, they include: ■ Cajun Gumbo—a blend of shrimp, chicken, sausage and rice in a<br />
sourdough bread bowl ($4.99) ■ Crabcakes—blue crabmeat blended with breadcrumbs and seasonings and accompanied by<br />
Cajun horseradish sauce ($4.99) ■ Bonfired Tuna—a yellowfin tuna steak ($13.99) ■ Dockside Shrimp—bite-sized shrimp that<br />
are hand-breaded and fried ($9.99) ■ The Best of the Beach—a combo of hand-breaded whitefish fillets, sea scallops, bitesized<br />
shrimp and a crab cake. (Restaurant Business Daily News)<br />
O’Charley’s latest promotion highlights favorite dishes from the past along with a few new items. The “Best of the O” promotion<br />
has returning favorites such as O’Charley’s Chipotle BBQ Salmon ($13.99, 10 oz.; $10.99, 6 oz.); Black & Bleu Caesar Salad<br />
($9.49); O’Charley’s 7-Ounce Sirloin ($9.99); Chicken Salad Supreme ($7.99); and Pecan Chicken Tender Salad ($8.99). New<br />
items include a Prime Rib Quesadilla ($7.99) that features prime rib in a flour tortilla with melted cheese, sautéed onions,<br />
peppers and jalapenos topped with Cajun horseradish sauce, sour cream and salsa. The chain also debuted a Steak Tips<br />
Skillet as a new Wednesday special. Priced at $8.99, it consists of marinated steak tips with sautéed onions, burgundy<br />
mushrooms and melted Monterey Jack cheese. It is served in a skillet with wild rice and a fresh vegetable medley. (Restaurant<br />
Business <strong>Menu</strong> Strategies Newsletter)<br />
Fruit is a common ingredient in desserts but is now gaining usage in savory applications such as appetizers, salads and<br />
entrees. As consumers become increasingly interested in Latin and Asian cuisines that incorporate fruit and healthful<br />
ingredients and fresh flavors become more in demand, fruit is ideally suited for a range of dishes. At 99 Restaurants, fruitbased<br />
sauces are used in several entrees such as the top-selling Oriental Teriyaki Chicken. It features two broiled chicken<br />
breasts glazed with sesame-pineapple sauce. That same sauce is also used as a dip for Lemon Crusted Salmon. Similarly, its<br />
Smokin’ Apple Bourbon Chicken Skillet consists of broiled chicken breasts glazed with apple-bourbon sauce and a topping of<br />
Pepper Jack cheese and smoked bacon. At California Pizza Kitchen, pears are used as a lighter topping for its Caramelized<br />
Pear & Gorgonzola Pizza. Meanwhile, O’Charley’s has found applications for fruit in several salads. Its Chicken Salad<br />
Supreme blends greens, fresh strawberries, mandarin oranges, dried cranberries and candied pecans with grilled chicken,<br />
while Pecan Chicken Tender Salad features the same base minus the strawberries, and utilizes pecan-crusted chicken. Citrus<br />
flavors are also quite popular, with lemons, limes, oranges and grapefruit among the most popular and versatile. At Lea in New<br />
York City, pan-seared, citrus-crusted halibut fillet is prepared with a dusting of zests from lemons, limes, oranges and<br />
grapefruits. Seasons 52, Darden’s Orlando test concept specializing in healthful foods, also relies on citrus zest for flavor.<br />
Dried orange and lemon zests are ground to a powder and sprinkled over fish and other foods. (Restaurant Business,<br />
Restaurants & Institutions)<br />
O’Charley’s has combined several of its traditional menu items to create new entrees for a “Summer’s on the Grill” promotion<br />
that is slated to run through August 10. Offerings include a Fire-Roasted Steak ‘N Skewer that combines sirloin steak with fireroasted<br />
vegetables. Priced at $11.99, it is served with rice and grilled corn on the cob. Also featured is MargO’rita Chicken<br />
($8.99). Based on the chain’s signature MargO’rita drink, the dish is chicken breast marinated in lime and tequila, then grilled<br />
and topped with salsa ranch sauce and melted cheese. It is served with rice pilaf and grilled corn. (NRN Daily NewsFax,<br />
6/27/03, Nation’s Restaurant News, 7/7/03, p14)<br />
O’Charley’s has revised its “Lunch Club” specials, a collection of 10 dishes starting at $5.99. The specials no longer duplicate<br />
offerings on the core menu and now include two items not previously promoted at lunch. Its Chicken Salad Supreme ($7.99) is<br />
a chicken salad with fruit, dried cranberries and candied pecans, and the Steak House Quesadilla ($7.99) features steak in a<br />
flour tortilla with melted Monterey Jack and Cheddar cheeses, sautéed onions, peppers and jalapenos. It was previously<br />
offered only as a dinner appetizer. (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 8/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
445
<strong>RISE</strong> COMPANY PROFILE<br />
O’Charley’s is promoting value with its new menu. The latest roster reduces prices 50¢ to $1 for its Chicken Tenders, Teriyaki<br />
Chicken and 7-oz. Flame Grilled Sirloin. Each is now priced at $9.99 and noted with a “Great Value” symbol. The chain is also<br />
offering Create-Your-Own-Combos with some entrees. Guests can build their combo with a choice of two ($9.99) or three<br />
($11.99) options from the following: Sirloin Steak, Chicken O’Tenders, Bite-Size Fried Shrimp, Grilled Chicken Breast and<br />
BBQ Ribs. Each comes with soup or salad and a side. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 9/10/03)<br />
Franchise Activity |<br />
O’Charley’s Inc. signed a multiunit development deal with Meritage Hospitality Group Inc. The deal calls for the development<br />
of 15 new units in Michigan. (NRN Daily NewsFax 12/30/04)<br />
Personnel |<br />
Gregory Burns, Chairman<br />
Steven Hislop, President<br />
Chad Fitshugh, Chief Financial Officer<br />
William Hall, Senior Vice President of Operations<br />
News & Other |<br />
Ninety Nine Restaurant & Pub owner O’Charley’s expects to double the number of units within five years. O’Charley’s acquired<br />
the chain last year for $160 million. Last year, Ninety Nine added 17 new restaurants and 10–12 more will open this year. It<br />
currently has 78 stores. (RB 7/15/03 p48)<br />
O’Charley’s Meritage Hospitality Group president Robert Riley will sell 500,200 shares back to Meritage for $4.90 apiece in<br />
order to raise funds for acquiring new sites for O'Charley's. Riley also announced he will resign his post in January 2004 but<br />
will continue to serve as director of special projects. Meritage is a publicly held Wendy’s franchisee and is the first O'Charley's<br />
franchisee. (Restaurantbiz.com 9/12/03)<br />
O’Charley’s has been served with three different lawsuits brought by guests who dined recently at a unit in Nashville, TN.<br />
Health officials have linked the restaurant to an outbreak of hepatitis A. (NDNF 9/26/03 & 10/2/03)<br />
O’Charley’s sold 23 of its restaurants and leased them back, earning $50 million during the transactions and paying down<br />
debt. The chain expects to perform similar transactions at 20 other restaurants in order to raise $35 million.<br />
(RestaurantBiz.com 10/21/03)<br />
O’Charley’s Inc. for the third quarter ended October 5, reported revenues increased 56% to $181.7 million compared to the<br />
same quarter last year. Same-store sales decreased 3.3%. (NRN Daily NewsFax 11/3/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
446
Office Beer Bar & Grill, The<br />
Headquarters<br />
1450 Route 22 West, Mountainside, New Jersey 7092 USA<br />
Tel: (908) 518 1800 Fax: (908) 518 1509<br />
www.office-beerbar.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 18,500 16,719 14,579<br />
Company-owned ($000) 18,500 16,719 14,579<br />
Franchised ($000) - - -<br />
U.S. Number of Units 9 8 7<br />
Company-owned 9 8 7<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,175 2,090 2,082<br />
Concept Positioning |<br />
A nine-location chain in central and northern New Jersey, The Office features 60 beers on draft and in bottles in a decidedly<br />
pub-like setting. Microbrewers receive special attention from The Office, which also features a wide selection of seasonal<br />
beers and ales.<br />
Units are open Monday through Saturday, 11:30 a.m.–2:00 a.m. and on Sunday from 10:30 a.m. to 2:00 a.m. The kitchen is<br />
open until 10:30 p.m. The restaurant also offers a Sunday Brunch. Nightly specials on beer.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item: Gentleman's Steak, an 18 oz. hand-cut New York strip. Also menued entrees include sandwiches, grilled beer<br />
pizza, fish and chicken. Appetizers range from the soup of the day, pot stickers and nachos. Extensive selection of domestic,<br />
international and non-alcoholic beers and lagers. <strong>Menu</strong> Prices: $5.99–$17.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
447
Old Chicago Restaurants<br />
Headquarters<br />
248 Centennial Pkwy., Louisville, Colorado 80027 USA<br />
Tel: (303) 664 4000 Fax: (303) 664 4199<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 110,656 106,081 94,400<br />
Company-owned ($000) 110,300 105,875 92,300<br />
Franchised ($000) 356 206 2,100<br />
U.S. Number of Units 56 53 48<br />
Company-owned 50 50 46<br />
Franchised 6 3 2<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,250 2,200 2,006<br />
Concept Positioning |<br />
Old Chicago restaurants feature high-quality, moderately priced food and a changing selection of more than 110 beers from<br />
around the world. Units are open seven days a week from 11:00 a.m. through late nighttime periods for lunch and dinner. To<br />
encourage repeat business and trial of its numerous beers, the chain has an active customer loyalty program called the “World<br />
Beer Tour.” Alcoholic beverages account for some 43.5% of sales, with beer making up 78% of that business.<br />
Units are largely freestanding and range in size from 5,000–8,500 sq. ft., with seating for 180–340 persons in separate dining<br />
room and bar areas. They are unique to each location as well as tied to its Chicago heritage through the use of Chicago-style<br />
memorabilia. It also has prominent displays of bottled beers and up to 36 colorful tap handles for draught selections.<br />
Televisions are placed throughout for sporting or special event viewing. Certain restaurants also feature pool tables and<br />
outdoor patio seating.<br />
The Old Chicago chain was founded in 1976 by Frank B. Day. Rock Bottom Brewery was incorporated in 1994 and had its<br />
initial IPO that same year. In late 1999, management, led by Day, took the company private. William Hoppe serves as<br />
president and chief executive officer of Old Chicago Franchising, which must approve all franchisees' locations.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Pizza. Offerings include Chicago-style deep dish and thin crust, specialty and build your own. Some 36<br />
different toppings include traditional and nontraditional choices such as black beans or artichokes. Also menus more than 50<br />
items, including calzones, burgers, sandwiches, pasta, appetizers, salads and desserts. <strong>Menu</strong> Prices: $5.49–$18.99. Check<br />
Average: $9–$12.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
448
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Old Chicago rolled out a new menu that includes an Express Lunch program. Offered Monday through Friday from 11 a.m. to<br />
3 p.m., it features lunch-sized offerings such as a Lunch Box Calzone and Little Pizza and Pasta Picks. Each comes with a<br />
choice of soup or salad and prices start at $4.99. In addition, two stromboli sandwiches were added to the regular menu.<br />
Roast Beef or Turkey Stromboli are both baked in the chain’s signature pizzini bread. (PR Newswire, NRN Daily NewsFax)<br />
Italian cuisine has gained mainstream status on chain menus. Given its popularity, chains are working not only to develop<br />
more authentic offerings at Italian concepts but also to supplement menus in concepts not devoted to that cuisine with pastas<br />
and other dishes showcasing Italian ingredients or influences. Olive Garden is continually working to adapt authentic Italian<br />
favorites for American tastes. Its most recent dishes include two versions of ravioli. One is stuffed with shrimp and crab in a<br />
lobster-based sauce, while the other features ground beef, sausage and chicken. It is also expanding into Italian-influenced<br />
seafood dishes. Its Salmon Piccata is grilled salmon with white-wine-and-lemon sauce accompanied by roasted vegetables.<br />
Other innovations include: ■ Ricotta Cheesecake Italiano—ricotta and cream cheeses baked with a hint of lemon and served<br />
with raspberry coulis, Bertucci’s ■ Polla Rosa Maria—fire-roasted chicken breast stuffed with fontina cheese and prosciutto,<br />
topped with mushrooms and basil-lemon butter sauce, Carrabba’s Italian Grill ■ Italian Nachos—mozzarella cheese,<br />
pepperoni, Italian sausage, pepperoncini and pizza sauce on pasta chips, Old Chicago ■ Pappardelle Pasta—with shrimp,<br />
saffron, basil, chiles and arugula, Piatti ■ Twice Baked Lasagna with Meatballs—slowly baked then topped with provolone and<br />
finished in a woodburning oven, Romano’s Macaroni Grill. (Restaurants & Institutions, 8/1/03, p66)<br />
Personnel |<br />
Frank Day, Chairman<br />
Ned Lidvall, Chief Executive Officer<br />
John Coletta, Chief Financial Officer<br />
Gary Foreman, Senior Vice President of Operations<br />
Ted Williams, Senior Vice President of Operations<br />
Mary Ann Rose, Vice President of Purchasing<br />
Gretchen Miller Paules, Director of Marketing<br />
Tom Lund, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
449
<strong>RISE</strong> COMPANY PROFILE<br />
Old Country Buffet/HomeTown Buffet<br />
Headquarters<br />
1460 Buffet Way, Eagan, Minnesota 55121 USA<br />
Tel: (651) 994 8608 Fax: (651) 554 9463<br />
www.buffet.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria Buffet<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,463,865 1,033,190 1,002,000<br />
Company-owned ($000) 947,865 979,440 936,000<br />
Franchised ($000) 516,000 53,750 66,000<br />
U.S. Number of Units 388 402 418<br />
Company-owned 365 379 394<br />
Franchised 23 23 24<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,576 2,570 2,392<br />
Concept Positioning |<br />
Old Country Buffet : Restaurants are open seven days a week from 11 a.m. to 9 p.m. for lunch and dinner. Weekend breakfast<br />
is also available in the majority of its markets. Customers pay upon entering and are seated by restaurant personnel. They<br />
then make selections from a scatter system service line where food is presented in six to eight islands so as to reduce long<br />
lines.<br />
Cafeterias are 8,000–13,850 sq. ft. with seating for 225–600 patrons. Area can be partitioned off for group meetings and<br />
special events. Most units are located in strip shopping centers and are generally freestanding structures.<br />
Price contracts with independent suppliers are negotiated through headquarters, but ordering and delivery take place at the<br />
units.<br />
HomeTown Buffet: Offers a price-fixed, all-you-can-eat lunch and dinner. Weekend breakfast is also served in the majority of<br />
its markets. Customers pay upon entering and are seated by restaurant personnel. All the restaurants incorporate a "scatter<br />
bar" service system in which the traditional buffet line is replaced by eight separate buffet islands as this format allows for<br />
shorter lines and easier patron access.<br />
A typical unit is approximately 10,000 sq. ft. with seating for 225–600 patrons. Service areas are separated from, but have<br />
easy access to, dining areas to create a more intimate feeling. In addition, dining areas can be partitioned off for group<br />
meetings and special events. Largely freestanding, most units are located in strip shopping malls.<br />
Hot foods and bakery items are prepared in small batches throughout the day to ensure freshness at both concepts. Second<br />
helpings and desserts are available at no extra charge. Hostesses help with children, and service personnel clear tables.<br />
Some of the restaurants serve a Sunday brunch; others offer breakfast.<br />
Buffets, Inc. was founded by Roe H. Hatlen and C. Dennis Scott in October 1983. The first Old Country Buffet opened in<br />
Richfield, MN, on March 22, 1984, and the first franchised Buffet commenced operations in June 1985. In 1989 Scott left<br />
Buffets and started HomeTown Buffet. However, in 1996, Buffets and HomeTown merged, forming the nation's thirteenth<br />
largest restaurant chain. The merger included a development agreement with Roadhouse Grill, Inc. to open franchised units of<br />
that concept. The agreement was terminated in early 1998 and Buffets, Inc. renamed all of its units Original Roadhouse Grill.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
450
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Old Country Buffet: Entrees typically include chicken, carved roast beef and ham and 2 or 3 other items such as casseroles,<br />
shrimp or fish as well as soup, salads, vegetables and desserts. Lunch selections limited: generally chicken and 2 or 3 other<br />
dishes. <strong>Menu</strong> Prices: $5.89–$9.19.<br />
HomeTown Buffet: Offers broad selection of traditional American items; 8–10 hot entrees at dinner (6–8 at lunch), 2 soups and<br />
extensive salad barSelections include fried and baked chicken and fish, carved roast beef, turkey, pork and baked ham,<br />
assorted vegetables and potato dishes, hot rolls and fresh-baked muffins and desserts. Salad bar has fresh fruit, pasta,<br />
seafood, vegetable and fruit salads Some entree sections change daily and offer ethnic dishes, lasagna and barbecue ribs.<br />
<strong>Menu</strong> Prices: $5.89–$9.19.<br />
<strong>Menu</strong> Development |<br />
Old Country Buffet added 32 new items to its menu. New dishes include more “high-profile” items such as salmon fillet and<br />
peppered pork loin, chicken Marsala and deep-dish pizza. Sugar-free cookies and cakes were also added. (Nation’s<br />
Restaurant News 10/27/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
451
Old Spaghetti Factory, The<br />
Headquarters<br />
0715 S.W. Bancroft St., Portland, Oregon 97239 USA<br />
Tel: (503) 225 0433 Fax: (503) 226 6214<br />
www.oldspaghettifactory.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 95,900 92,700 84,500<br />
Company-owned ($000) 75,800 72,200 66,500<br />
Franchised ($000) 20,100 20,500 18,000<br />
U.S. Number of Units 37 36 35<br />
Company-owned 29 28 28<br />
Franchised 8 8 7<br />
International Sales ($000) 7,800 13,000 13,000<br />
International Units 6 9 9<br />
Average Sales/Unit ($000) 2,600 2,575 2,374<br />
Concept Positioning |<br />
The Old Spaghetti Factory is a full-service, family-oriented chain specializing in spaghetti. Restaurants are generally located in<br />
older areas of town, often in the warehouse district. Units range in size from 12,000–14,000 sq. ft., with seating for 250–550<br />
patrons. The average total area is approximately 12,000 sq. ft., with space for 385 customers in the dining area and another<br />
70 in the bar. Interior designs feature stained glass, rich colors, and wood, as well as antique furnishings and light fixtures. A<br />
trolley car serves as the focal point in the main dining room of each restaurant.<br />
It has developed a prototype for use in suburban expansion of existing markets. The unit features a distinctive "factory" motif<br />
and is around 12,000 sq. ft. with seating for approximately 380 in the dining area and another 40 in the bar. The first unit was<br />
opened in suburban Portland, OR. The company also owns a 25,000-sq. ft. warehouse used to restore antiques or create<br />
reproductions for the restaurants.<br />
Nearly everything is made on-premise from scratch using fresh ingredients.<br />
The business was founded in 1969 by Guss Dussin, a Portland, OR, restaurateur. He currently serves as chairman. Its<br />
president is Chris Dussin and David Cook, executive vice president.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: complete meal of salad or soup, fresh baked sourdough bread, entree, beverage choice and spumoni ice<br />
cream. Also variety of pasta dishes with sauces and accompanying sides such as Italian sausage and chicken entrees. Most<br />
popular item: spaghetti and choice of any 2 sauces. Complete dinner available for under $6. Full liquor service available. <strong>Menu</strong><br />
Prices: $5–$8.25. Check Averages: $8.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
452
Olive Garden, The<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809 USA<br />
Tel: (407) 245 4000 Fax: (407) 245 6648<br />
www.olivegarden.com<br />
Ownership: Public<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,921,900 1,757,000 1,644,802<br />
Company-owned ($000) 1,921,900 1,757,000 1,644,802<br />
Franchised ($000) - - -<br />
U.S. Number of Units 501 479 463<br />
Company-owned 501 479 463<br />
Franchised - - -<br />
International Sales ($000) 15,000 15,000 19,226<br />
International Units 6 6 5<br />
Average Sales/Unit ($000) 3,900 3,700 3,552<br />
Concept Positioning |<br />
The Olive Garden is a moderately priced Italian dinner house restaurant targeted at customers aged 25–45. Units are open for<br />
breakfast, lunch and dinner seven days a week, from 11:00 a.m. to 10:30 p.m. weekdays and to 11 p.m. weekends. As part of<br />
the overall marketing mix, menus reflect regional taste preferences of customers. <strong>Menu</strong> size has remained constant for the last<br />
four years, with 25 dinner and 16 luncheon entrees. There is also a list of 75–80 daily specials based on traditional Northern<br />
and Southern Italy dishes.<br />
Units are freestanding and range in size from 5,500–9,100 sq. ft., with seating for 275 plus 25 in the bar area. From the<br />
outside, each unit is different, yet all share a contemporary, fully landscaped exterior much like an Italian country home. The<br />
interior decor of Olive Garden restaurants is contemporary, creating a garden-like atmosphere. Atrium-like dining rooms are<br />
furnished with spaciously placed tables and chairs, green plants and wall murals.<br />
In 1999, Olive Garden announced a partnership with the Italian, family-owned winery Rocca delle Macie. The partnership<br />
consists of two elements: Olive Garden Riserva di Fizzano, a restaurant specializing in Tuscan cuisine; and the newly created<br />
Culinary Institute of Tuscany, where Olive Garden teams will learn first hand about Italian cooking techniques, food, wine and<br />
culture. This concept is currently one of Darden's focuses for expansion.<br />
The Olive Garden was developed by parent Darden Restaurants and first opened in Orlando in 1982. In December 1994,<br />
General Mills announced plans to separate into two independent public corporations, with the separation completed by June 1,<br />
1995. The corporate name, Darden Restaurants, was selected as a way to honor the founder of Darden's other main chain,<br />
Red Lobster.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
453
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: garlic breadsticks, garden salad and house-made pastas. Lunch features soups and salads including pastabased<br />
offerings, pasta specials, Italian sandwiches and burgers; accounts for about 40% of sales. Dinner offers a wide range<br />
of Italian entrees such as eggplant parmigiana and veal piccata and pasta items tortellini and ravioli; entree prices include as<br />
much fresh salad or soup as guest desires. Newest items include Capellini Pomodoro and Mediterranean Garlic Shrimp. Uses<br />
imported Italian coffee for espresso and cappuccino service. Alcoholic beverages served; expanded wine list includes broad<br />
selection imported from Italy and accounting for 9% of sales. <strong>Menu</strong> Prices: $5.75–$17.95. Check Averages: $12.50–$13.50.<br />
Expansion Plans |<br />
Darden Restaurants said it acquired three Don Pablo’s restaurant locations and one Hops unit from Avado Brands. The units<br />
will be converted to the Smokey Bones BBQ Sports Bar concept. The Don Pablo’s sites are in Greensboro, NC; Bowie, MD;<br />
and Youngstown, OH. The Hops site is in Columbus, OH. Terms were not revealed. Darden’s other brands are Red Lobster,<br />
Olive Garden and Bahama Breeze. (NRN 3/10/03 p77)<br />
Promotion Plans |<br />
Ruby Tuesday has retained a high-profile New York-based ad agency—a dramatic departure from its traditional reliance on<br />
word-of-mouth and local marketing. It hired Kaplan Thaler Group to help it capture the business of consumers who have been<br />
looking for less-expensive alternatives to casual-dining brands such as Red Lobster, Outback Steakhouse and Olive Garden,<br />
the company told investors. (RB 4/1/03 p12)<br />
<strong>Menu</strong> Development |<br />
Italian cuisine has gained mainstream status on chain menus. Given its popularity, chains are working not only to develop<br />
more authentic offerings at Italian concepts but also to supplement menus in concepts not devoted to that cuisine with pastas<br />
and other dishes showcasing Italian ingredients or influences. Olive Garden is continually working to adapt authentic Italian<br />
favorites for American tastes. Its most recent dishes include two versions of ravioli. One is stuffed with shrimp and crab in a<br />
lobster-based sauce, while the other features ground beef, sausage and chicken. It is also expanding into Italian-influenced<br />
seafood dishes. Its Salmon Piccata is grilled salmon with white-wine-and-lemon sauce accompanied by roasted vegetables.<br />
Other innovations include: ■ Ricotta Cheesecake Italiano—ricotta and cream cheeses baked with a hint of lemon and served<br />
with raspberry coulis, Bertucci’s ■ Polla Rosa Maria—fire-roasted chicken breast stuffed with fontina cheese and prosciutto,<br />
topped with mushrooms and basil-lemon butter sauce, Carrabba’s Italian Grill ■ Italian Nachos—mozzarella cheese,<br />
pepperoni, Italian sausage, pepperoncini and pizza sauce on pasta chips, Old Chicago ■ Pappardelle Pasta—with shrimp,<br />
saffron, basil, chiles and arugula, Piatti ■ Twice Baked Lasagna with Meatballs—slowly baked then topped with provolone and<br />
finished in a woodburning oven, Romano’s Macaroni Grill. (Restaurants & Institutions, 8/1/03, p66)<br />
Olive Garden has added a new upscale coffee blend to its menu systemwide and modified its coffee service. The signature<br />
Italian roast coffee blend is served in thermal brushed metal pots, and new procedures require that the coffee be used within<br />
one hour or discarded. It is served at the table in new china with a creamer urn and sugar caddy with Olive Garden-branded<br />
sugar sticks. The chain also serves cappuccino, espresso and other specialty coffee drinks such as mochas and lattes.<br />
(Nation’s Restaurant News Beverage Trends Newsletter 10/03)<br />
Olive Garden is offering a new Stuffed Chicken Marsala as a limited-time offer. The item is an oven-roasted chicken breast<br />
filled with Italian cheeses and sun-dried tomatoes, topped with mushrooms and creamy Marsala sauce and served with garlic<br />
parmigiana mashed potatoes. Also new is Stuffed Chicken Siena—oven-roasted chicken breast stuffed with Italian cheeses. It<br />
is served with a sauce of tomatoes, olives, garlic and red peppers. (Company Web Site 11/8/03)<br />
Personnel |<br />
Andrew Madsen, President<br />
Barry Moullet, Director of Purchasing<br />
Olive Garden hired John Malloy as executive chef of promotional pipeline development. Previously, Malloy was product<br />
development chef at Red Lobster. (Nation’s Restaurant News 11/10/03 p42)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
454
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burger King will focus on its flame-broiling cooking method and on offering more healthful menu items, under the direction of<br />
its new chief executive, Brad Blum. He plans to introduce an enhanced salad line and has menu items in development that<br />
contain four grams of fat or less. Blum said he plans to introduce fewer new items than in the past but to launch them<br />
effectively, with market tests and “compelling advertising.” He also is developing strategies to reduce turnover at the restaurant<br />
level and plans to steer the chain’s marketing strategy away from discounting. Blum previously served as president of Darden<br />
Restaurant’s Olive Garden. In related news, the chain recently named Young & Rubicam of New York as the lead ad agency<br />
for its estimated $350 million account. (NRN 4/28/03 p4; NDNF 4/15/03)<br />
The Olive Garden’s urban prototype in New York City is nearly as large as a suburban unit but has a more sophisticated<br />
design. The 8,762-sq.ft. Manhattan restaurant—opened in November 2002—features darker woods, a granite-topped bar and<br />
metal wrapped, blown-glass light fixtures. The location also is serving as a test spot for a higher-priced manager’s wine list<br />
offering varietals priced from $68–$130 per bottle. Thus far, the urban Olive Garden is attracting a mix of about 80% locals and<br />
20% tourists. Although the chain would not disclose the urban unit’s food/beverage split, it acknowledged that wine sales are<br />
“significantly higher” than average. Olive Garden also operates a two-story outlet in Times Square. (CL 4/03 p28)<br />
Darden Restaurants bought five Rio Bravo restaurants from Chevys Inc. It plans to convert three of the sites—located in<br />
Grand Rapids, MI; Springfield, MO; and Morrow, GA—into Smokey Bones Barbeque restaurants. A unit in Strongsville, OH,<br />
will become a Red Lobster and one in Dunwoody, GA, will house an Olive Garden. Over the next 12 months, Darden said it<br />
plans to invest more than $2.5 million for renovations in each location and it will hire 100 employees for each restaurant.<br />
(NDNF 8/1/03)<br />
Olive Garden reported same-store sales increased 2% for the five-week period ended September 28. (NRN Daily NewsFax<br />
10/8/03)<br />
Olive Garden for the four weeks ended October 26, reported same-store sales increased 2% to 3%. (NRN Daily NewsFax<br />
11/5/03)<br />
The Olive Garden has introduced a new coffee service called Caffe la Toscana at all 527 of its locations. It features a new<br />
signature Italian-roast coffee blend (its cappuccino and espresso blends remain the same) and a new brewing system. Coffee<br />
now will be brewed into a brushed metal thermal pot rather than held in a glass carafe over a heating element. Also new is a<br />
rule stipulating that coffee will not be held longer than one hour after brewing. It is served in a cup bearing the Caffe la<br />
Toscana logo and is accompanied by branded Olive Garden sugar sticks. Customers pay $1.75 per cup—25¢ more than<br />
before—and get free refills. (R&I 11/15/03 p22; RB 11/15/03 p56)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
455
On the Border<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
Ownership: Public<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 345,354 325,025 298,349<br />
Company-owned ($000) 295,358 264,541 219,768<br />
Franchised ($000) 49,996 60,484 78,581<br />
U.S. Number of Units 134 125 116<br />
Company-owned 115 105 87<br />
Franchised 19 20 29<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,700 2,850 2,526<br />
Concept Positioning |<br />
On The Border is a chain of casual dining restaurants open for lunch and dinner that specializes in Mexican foods. Units<br />
average 6,500–7,200 sq. ft. with seating for some 220–240 customers and outdoor patio seating for up to 100 patrons. Most<br />
units have indoor dining rooms that can be reserved for private party use.<br />
Interiors include exposed brick, cactus and artifacts of the South Texas/Mexican border country. Expansive window walls with<br />
transoms and skylights provide the units with a light and open feeling of border town haciendas. Fresh-cooked, flour tortillas<br />
are continuously flame-grilled on a machine displayed for customer viewing. Restaurants also include a "To Go" entrance and<br />
parking, an update that recognizes its growing carry-out business.<br />
With an emphasis on freshness, all food products are delivered fresh several times a week to each unit. Approved local<br />
vendors and a central distributor are selected by the company.<br />
The first On The Border restaurant opened in Dallas in 1982 and the company incorporated in 1989. An initial public stock<br />
offering was completed in 1992. In May 1994, Brinker International acquired the company for a $32 million stock swap.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Mesquite-grilled chicken, buffalo, steak or shrimp fajitas and original recipe Mexican entrees. Also menus<br />
appetizers such as Smoked Chicken Quesadillas and On The Border Nachos, salads such as Tijuana Caesar, sandwiches<br />
and mesquite-grilled hamburgers. Full liquor service available. Alcohol accounts for approximately 22% of sales.<strong>Menu</strong> Prices:<br />
$5.49–$13.99. Check Averages: $13.14.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
456
Personnel |<br />
David Orenstein, President<br />
Krista Gibson, Vice President of Marketing<br />
Mike Nelson, Vice President of Finance<br />
Shelia Edwards, Director of Purchasing<br />
Beto Rodarte, <strong>Menu</strong> Development/R&D<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
Brinker International reported a 3% increase in same-store sales for the four weeks ended August 27. The rise includes<br />
increases of 3.5% at Chili's Bar & Grill, 2.9% at Romano's Macaroni Grill, 2.7% at On the Border Mexican Grill & Cantina and<br />
0.8% at Maggiano's Little Italy. (NRN Daily NewsFax 9/5/03)<br />
On The Border reported comparable-store sales increased 2.7% in August. (Nation’s Restaurant News 9/15/03 p11)<br />
On the Border for the first quarter ended September 24, reported same-store sales increased 3.2%. (NRN Daily NewsFax<br />
10/22/03)<br />
On the Border Mexican Grill & Cantina for the five weeks ended October 29, reported same-store sales increased 3.4%. (NRN<br />
Daily NewsFax 11/7/03)<br />
On the Border for the 13-week first quarter ended September 24, reported same-store sales increased 3.2%. (Nation’s<br />
Restaurant News 11/3/03 p12)<br />
Brinker International recently hired a firm to develop a defined music style for each of its chains. The audio/visual systems<br />
company considered each chain’s distinct demographics, ambience and pace of dining when developing the customized<br />
music menus. Maggiano’s Little Italy, Chili’s Grill & Bar and On the Border Mexican Grill & Cantina each have music menus<br />
that include hundreds of singers and musical groups. Each unit downloads preset music through Brinker’s intranet on a regular<br />
basis and there is no need to change CDs. Separately, the Internal Revenue Service alleges that Brinker’s tip-reporting<br />
procedures don’t meet the requirements of a 1996 agreement, according to an SEC filing. The 1,400-unit company’s<br />
agreement with the IRS included requirements that it implement tip-reporting educational programs for its hourly restaurant<br />
employees and establish tip-reporting procedures. Brinker said it believes that it has complied with the agreement and notes<br />
that it is in discussions with the IRS but said it could not estimate if the resolution of the dispute would have any financial<br />
impact. (R&I 11/15/03 p19; NRN 11/24/03 p80)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
457
Orange Julius of America<br />
Headquarters<br />
7505 Metro Blvd., Minneapolis, Minnesota 55439 USA<br />
Tel: (952) 830 0200 Fax: (952) 830 0301<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 51,000 56,000 61,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 51,000 56,000 61,000<br />
U.S. Number of Units 200 215 230<br />
Company-owned - - -<br />
Franchised 200 215 230<br />
International Sales ($000) 28,000 29,000 32,000<br />
International Units 105 112 129<br />
Average Sales/Unit ($000) 250 250 -<br />
Concept Positioning |<br />
Orange Julius restaurants are a specialty fast food, carryout chain that was built around a line of signature beverages. The<br />
system has three store models, each serving a different carryout menu. The largest stores range from 750–1,400 sq. ft.; in-line<br />
stores occupy between 400–750 sq. ft. and are usually located in shopping malls; and the smallest units are freestanding<br />
kiosks in high-traffic shopping center locations that average 150–200 sq. ft. Stores are generally open for lunch and dinner.<br />
Some serve breakfast. <strong>Menu</strong>s vary widely throughout the system not only because of unit size but also to appeal to its large<br />
ethnic audience.<br />
Current marketing endeavors include repositioning of its signature "Orange Julius" drink line into a smoother, creamier<br />
textured beverage and testing of OJ Grill stores, a concept that focuses its menu on fresh-cut fries and hamburger patties,<br />
grilled chicken and sausages as well as the full line of Orange Julius drinks and hot dogs.<br />
Orange Julius units are being combined with Dairy Queen and/or Karmelkorn items in the chain's Treat Center concept in<br />
shopping malls. By combining the products of these three systems, IDQ seeks to generate store sales volumes that can<br />
support signing leases that would otherwise be too costly for Orange Julius operations.<br />
It is also developing a fruit and vegetable juice concept, Just Juice, which attracts health-oriented consumers. Units are<br />
located in shopping malls, some 23 units are currently open and plans call for 50 within the next few years.<br />
The company began in 1926 as Orange Julius of America. Its founder, a would-be chemist named William Hamlin, opened his<br />
first shop as a health food store in Los Angeles. Food items were introduced in the 1960s. Under various ownerships through<br />
the years, its parent International Dairy Queen was acquired by Berkshire Hathaway in early 1998.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
458
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: Orange Julius drink; proprietary blend of ice, freshly squeezed orange juice, syrup and secret powder that has<br />
not changed in 50+ years. Additional flavors offered include: strawberry, banana, pineapple and raspberry. Also menus<br />
smoothies such as strawberry banana, tropical and raspberry, its own proprietary coffee, Julius Java, as iced drinks, Orange<br />
Julius Swirl, hard-packed flavored yogurt blended with Julius drinks and wide variety of plain and gourmet. all-beef hot dogs.<br />
Larger units offer hamburgers, corn dogs, chicken and fish sandwiches. Orange Julius Just Juice: signature items—Julius<br />
Swirl made from frozen yogurt and fruit and Julius Juicers—fresh squeezed fruit and vegetable drinks. Also menus traditional<br />
Julius blended specialties, smoothies such as Tripleberry Julius and 2 Julius Java drinks.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
459
Original Cookie Co., The<br />
Headquarters<br />
2855 E. Cottonwood Pkwy., Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 10,000 20,000 27,000<br />
Company-owned ($000) 10,000 20,000 27,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 25 40 79<br />
Company-owned 25 40 79<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 275 300 341<br />
Concept Positioning |<br />
The Original Cookie Co. is a chain of specialty restaurants that sell cookies and beverages from display counters for<br />
immediate consumption or in bulk quantities for use later. Stores are approximately 700 sq. ft. and located in shopping malls.<br />
Interiors currently use a burgundy with bleached wood and copper accents design. There is no seating.<br />
Cookies are produced on-premise from frozen, pre-portioned dough. The company has a contract with an outside supplier for<br />
the manufacture of the dough. It contains no artificial preservatives.<br />
Currently, the company is converting these units to its Mrs. Fields concept.<br />
The Original Cookie Co. was founded in 1976 and acquired by Midial S.A., Paris, in 1989. Through a merger in 1996 with<br />
Capricorn Investors, L.P., the chain became part of Mrs. Fields' Original Cookies, Inc.<br />
<strong>Menu</strong> Positioning |<br />
Signature item—cookies baked fresh daily in traditional, giant circular and heart-shaped varieties. Also menus cookies cups—<br />
baked in muffin tins with creme filling in each. Beverages include coffee, hot chocolates, milk and soft drinks. <strong>Menu</strong> Prices:<br />
80¢/piece–$5.99/lb.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
460
Original Pancake House<br />
Headquarters<br />
8601 S.W. 24 Avenue, Portland, Oregon 97219 USA<br />
Tel: (503) 246 1049 Fax: (503) 245 2396<br />
www.originalpancakehouse.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 97,500 93,200 -<br />
Company-owned ($000) 1,200 1,200 -<br />
Franchised ($000) 96,300 92,000 -<br />
U.S. Number of Units 92 85 -<br />
Company-owned 1 1 -<br />
Franchised 91 84 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,100 1,075 -<br />
Concept Positioning |<br />
The Original Pancake House is a full-service restaurants specializing in breakfast foods. Though restaurants are open from<br />
early morning until midafternoon, the house specialty is the restaurant's famous pancakes.<br />
Units are mostly freestanding, and feature interiors normally found in diners. Décor does vary from restaurant to restaurant,<br />
though the original Original is decorated with pine-paneled walls accented with display plates. The restaurant differs itself from<br />
other concepts with its high-quality ingredients, including 93 score butter, 36% whipping cream and its own sourdough-starter<br />
recipe.<br />
Les Highet and Emma Hueneke opened the first Original Pancake House in 1953 and have since franchised the concept.<br />
Today, the company remains in family hands; it's current president is Ron Highet.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item—Pancakes, notably the Apple Pancake, a single pancake smothered in sauteed and cinnamon apples. Also<br />
known for the egg-rich and powder-sugar coated Dutch Baby. <strong>Menu</strong>s typical breakfast fare, including crepes, omelettes,<br />
waffles and cereal. Sides include eggs, applesauce, compotes and cream. <strong>Menu</strong> Prices: $3.95–$7.49.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
461
Original Roadhouse Grill<br />
Headquarters<br />
1460 Buffet Way, Eagan, Minnesota 55121 USA<br />
Tel: (651) 994 8608 Fax: (651) 554 9463<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 41,973 42,374 30,000<br />
Company-owned ($000) 41,973 42,374 30,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 13 14 12<br />
Company-owned 13 14 12<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,229 3,027 2,499<br />
Concept Positioning |<br />
O.R.G. Restaurants, L.L.C. owns and operates Original Roadhouse Grill. Its units feature cement floors painted a very faded<br />
red, exposed ducts and faded rusty signs to give the feeling of an old gas station turned restaurant. The current prototype<br />
averages some 7,000 sq. ft. and seats 220 patrons. Some 75% of its menu is made from scratch. Open for both lunch and<br />
dinner, the latter day part currently accounts for about 75% of its sales.<br />
Original Roadhouse Grill has the look of an old filling station that was turned into a restaurant. Rusty signs hang on the wall<br />
and a big metal washtub of ice holds longnecks behind the bar. An exhibition kitchen with a mesquite grill is the focal point of<br />
the restaurant.<br />
In September 1996, former parent Buffets, Inc. completed its acquisition of HomeTown Buffet, Inc. The deal included a<br />
development agreement with Roadhouse Grill, Inc. to open franchised units of that concept. The agreement was terminated in<br />
early 1998 and Buffets, Inc. renamed all of its units Original Roadhouse Grill. In June 2003 Buffets, Inc. sold all 13 units to<br />
O.R.G. Restaurants.<br />
<strong>Menu</strong> Positioning |<br />
Variety of steaks such as sirloin, T-bone and porterhouse as well as Prime Rib, chicken, seafood, barbecue ribs, burgers and<br />
dinner-size salads. Top sellers include baby back ribs and Prime Rib. Entrees come with scratch-made yeast rolls served with<br />
honey butter. Appetizers include fried onion rings ($5.79) and Texas Egg Rolls—jalapeno and cheese rolled in egg-roll<br />
wrapper and fried ($4.59). <strong>Menu</strong> Prices: $4.59–$17.99. Check Averages: $15.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
462
Outback Steakhouse<br />
Headquarters<br />
2202 N. Westshore Blvd., Tampa, Florida 33607 USA<br />
Tel: (813) 282 1225 Fax: (813) 282 1209<br />
Ownership: Public<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Bonefish Grill<br />
Carrabba's Italian Grill<br />
Fleming's Prime Steakhouse & Wine Bar<br />
Roy’s Restaurants<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,273,000 2,146,000 1,981,000<br />
Company-owned ($000) 1,896,000 1,788,000 1,663,000<br />
Franchised ($000) 377,000 358,000 318,000<br />
U.S. Number of Units 692 667 611<br />
Company-owned 574 553 508<br />
Franchised 118 114 103<br />
International Sales ($000) 170,000 141,000 110,000<br />
International Units 92 72 53<br />
Average Sales/Unit ($000) 3,354 3,411 3,273<br />
Concept Positioning |<br />
Outback Steakhouse restaurants, full-service operations, attract a diverse mix of customers through its casual dining<br />
atmosphere. The units are open for dinner only. Decor is suggestive of the rugged Australian outback and includes blond<br />
woods, large booths and tables, boomerangs, surfboards, maps and flags.<br />
Units are typically freestanding and located in high-traffic areas, such as strip shopping centers. A typical unit measures 6,200<br />
sq. ft. and features a dining area and island bar. Units seat 166 people in the dining area and another 54 in the bar. Meal<br />
service is available in both areas.<br />
Purchasing is negotiated directly with suppliers to ensure uniform quality. Franchisees purchase all food and beverage<br />
products from authorized suppliers.<br />
Outback was incorporated in 1987 as Mulit-Venture Partners, Inc., and in 1991 changed its name to Outback Steakhouse. An<br />
initial public offering was also made that year. Its key expansion strategy has been the use of individual project investment<br />
capital. Arrangements are made in a variety of ways including: a limited partnership (10% interest) in one unit by its general<br />
manager, a controlled joint venture (10% interest) to develop a market area and a development joint venture (50% interest) in<br />
a market area. In 1995, the company acquired Carrabba's Italian Grill restaurants and has sole rights to develop the concept.<br />
Outback also has an agreement with Roy's Restaurants to develop and operate the concept internationally. Other agreements<br />
and concepts include Fleming's Prime Steakhouse and Wine Bar, Lee Roy Selmon's, Cheeseburger in Paradise, and, most<br />
recently in 2001, Bonefish Grill, a casual dinner-only seafood restaurant.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: specialty appetizer called Bloomin' Onion and uniquely seasoned steaks. Also prime rib, chops, ribs, chicken,<br />
fish, pasta, hamburgers, sandwiches and salads. Full liquor service as well as assortment of Australian beers. Liquor service<br />
accounts for 13% of sales. Some units also have separate menu for larger cuts of Prime Beef; prices $20.99–$29.99. <strong>Menu</strong><br />
Prices: $2.69–$27.99. Check Average: $17.50–$20.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
463
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Bonefish Grill’s* expansion is being ramped up, with about 20 restaurants to be opened by Outback Steakhouse in 2003.<br />
Outback acquired the concept’s operating system and an interest in three existing restaurants in October 2001. There were 19<br />
of the dinner-only Bonefish Grills at the end of the first quarter. (Nation’s Restaurant News)<br />
Bonefish Grill plans to open 16–20 new locations this year. The 24-unit chain entered into a 50/50 joint venture partnership<br />
with Outback Steakhouse last year that has helped the chain grow. There currently are 12 restaurants in Florida, three in<br />
Indiana, three in North Carolina, two in Virginia, one in Louisville, one in northern Kentucky, one in Ohio and one in Myrtle<br />
Beach, SC. (SeaFood Business 7/03 p1)<br />
Personnel |<br />
Paul Avery, President<br />
Bob Basham, Chief Operating Officer<br />
J. Timothy Gannon, Director of Purchasing<br />
Carl Sahlsten, <strong>Menu</strong> Development/R&D<br />
Chris Sullivan, Chairman<br />
Robert Merritt, Chief Financial Officer<br />
Nancy Scheid, Senior Vice President of Marketing<br />
Benjamin Novello, President<br />
Irene Wenzel, Vice President of Operations<br />
Fulton Smith-Sykes, Vice President of Marketing<br />
Steve Patterson, Director of Purchasing<br />
News & Other |<br />
Westside High School in Houston has opened an Outback Steakhouse on campus that will be run by students with assistance<br />
from instructors and local Outback general managers. The restaurant is a partnership between Outback, the Texas Restaurant<br />
Association Education Foundation and the Houston Independent School District and will help teach high school students about<br />
the restaurant business. (NRN 3/3/03 p20)<br />
Outback Steakhouse will open at least 90 restaurants in the U.S. and abroad at a cost of between $175 million and $200<br />
million. It will end 2003 with more than 1,000 restaurants representing seven brands: Outback, Carrabba’s, Bonefish Grill,<br />
Roy’s, Fleming’s, Selmon’s and Cheeseburger in Paradise. It could open as many as 106 restaurants in 2003. Of the 90 units<br />
pegged for this year, 41–47 will be its flagship steakhouse brand both in the U.S. and abroad and 24–26 will be Carrabba’s, its<br />
Italian concept. In 2002, the company opened 49 steak restaurants and 20 Carrabba’s. Bonefish Grill will more than double its<br />
15-unit count this year with 16–20 more units. In other news, Outback is introducing smaller cuts of its sirloin steak and filet<br />
mignon, an option that was popular during tests. The sirloin will be available as a 12-oz. or 10-oz. cut and the filet in a 10-oz.<br />
or 8-oz. serving. (FIR 4/14/03 p3; RB 5/1/03 p14)<br />
Bonefish Grill’s expansion is being ramped up, with about 20 restaurants to be opened by Outback Steakhouse in 2003.<br />
Outback acquired the dinner-only concept’s operating system and an interest in three existing restaurants in October 2001.<br />
There were 19 Bonefish Grills at the end of the first quarter. (NRN 5/26/03 p1)<br />
Roy’s is being repositioned as a high-end seafood restaurant, a category that it feels is wide open. Joint-venture partner<br />
Outback Steakhouse wants Roy’s average unit volume to hit $3.5 million, about $400,000 more than where they are now.<br />
Roy’s was preparing to launch an advertising campaign in high-end leisure magazines and is mounting an effort to build the<br />
private-party end of its business. In addition, the brand has been testing sushi. (RB 7/15/03 p40)<br />
Outback Steakhouse Inc. announced same-store sales increased 2.4% at domestic Outback Steakhouses and 1.8% at<br />
Carrabba’s Italian Grills for the four weeks ended August 23, compared to the same period a year ago. (Nation’s Restaurant<br />
News 09/08/03 p12)<br />
Outback Steakhouse Inc. for the five-week period ended September 27, reported same-store sales increased 3.2% at its<br />
domestic namesake units. Carrabba’s Italian Grill announced same-store sales were flat during the same period. (NRN Daily<br />
NewsFax 10/3/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
464
<strong>RISE</strong> COMPANY PROFILE<br />
Mimi’s Café president Russ Bendel was named MUFSO Operator of the Year at the Multi-Unit Foodservice Operators<br />
conference in Atlanta. Bendel, a former Outback Steakhouse franchisee and president of its Roy’s division, joined 73-unit<br />
Mimi’s Café in 2001. (NDNF 9/24/03)<br />
Outback Steakhouse and Paul Lee’s Chinese Kitchen formed a 50-50 joint venture to develop the new brand. The Chinese<br />
concept, devised by Paul Fleming, founder of P.F. Chang’s, already has negotiated eight leases, including three in California.<br />
Fleming already had a joint-venture relationship with Outback to develop his Fleming’s Prime Steakhouse & Wine Bar concept.<br />
Paul Lee’s is projected to generate check averages of $13–$15 and do 20%–25% of its business in takeout, including curbside<br />
pickup orders, according to Paul Lee’s president Greg Carey. (NRN 9/29/03 p3)<br />
Outback Steakhouse Inc. for the third quarter ended September 30, reported net income increased 14.5% to $37.6 million.<br />
Revenues increased 17.3% to $685.3 million. (NRN Daily NewsFax 10/24/03)<br />
Outback Steakhouse Inc. for the third quarter ended September 30, reported revenues increased 17.3% to $685.3 million<br />
compared to last year's third quarter. Same-store sales increased 1.2% at company-owned units and 4.5% at franchised units.<br />
(Nation’s Restaurant News 11/3/03 p12)<br />
Outback Steakhouse Inc. for the four weeks ended October 25, reported same-store sales increased 4.4%. Same-store sales<br />
increased 3.9% at company-owned units and 7.7% at franchised units. (Nation’s Restaurant News 11/10/03 p45)<br />
Outback Steakhouse four weeks ended November 22, domestic same-store sales at its namesake units rose 4.8%. Sales at<br />
company-owned units increased 4.3% and franchised restaurants grew 7.4%. (NRN Daily NewsFax 12/02/03)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
Wait times were down 27% at 200 outlets of 16 casual-dining chains on Friday, October 24 compared to a comparable<br />
evening last year. The survey was conducted by Mark Kalinowski of Citigroup Smith Barney. The average wait for a party of<br />
four between 6 p.m. and 9 p.m. was 18.3 minutes, down approximately seven minutes from last year. Outback Steakhouse<br />
and LongHorn Steakhouse posted substantial increases from last year, with an average wait of 35 minutes. (NDNF 11/5/03)<br />
Outback Steakhouse for the five weeks ended December 27, reported that same-store sales rose 2.5% at the company’s<br />
namesake units. (NRN Daily NewsFax 1/6/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
465
P.F. Chang's China Bistro<br />
Headquarters<br />
15210 N. Scottsdale Rd., Scottsdale, Arizona 85254 USA<br />
Tel: (602) 957 8986 Fax: (602) 957 8998<br />
www.pfchangs.com<br />
Ownership: Public<br />
Segment: Full Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Pei Wei Asian Diner<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 400,190 312,864 234,000<br />
Company-owned ($000) 400,190 312,864 234,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 79 65 52<br />
Company-owned 79 65 52<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 5,550 5,480 4,499<br />
Concept Positioning |<br />
P.F. Chang’s is a full-service Chinese concept which combines a traditional Chinese menu with a Western-style bistro<br />
atmosphere. Every menu item is made from scratch and is served family-style to allow guests to build a meal of<br />
complementary flavors. Restaurants use the same menu for both lunch and dinner. Takeout service is also available.<br />
Units average 6,000–7,000 sq. ft., and seat 145–260 guests. The restaurants are largely freestanding and mall locations. Each<br />
unit requires a total capitalized investment of $2–$3 million. The upscale, contemporary atmosphere is complemented by large<br />
hand-painted murals and replicas of ancient Chinese statues. Units feature a display kitchen and exhibition wok cooking, as<br />
well as mounted life-size terra cotta replicas of Xi’an warriors and narrative murals depicting 12th century China. Other design<br />
elements, such as hardwood and slate floors, millwork, textured walls and high-tech lighting, are atypical of traditional Chinese<br />
restaurants.<br />
P.F. Chang’s was founded in 1993 under the direction of Paul Fleming, founder and chairman of Fleming Restaurants, in<br />
collaboration with Philip Chiang. In 1998, the company completed an IPO, with proceeds planned to fuel expansion and pay off<br />
debt. In 2000, P.F. Changs developed a quick-casual concept called Pei Wei's Asian Diner.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: traditional Chinese entrees from such regions as Shanghai, Sichuan, Hunan, Canton and Mongolia. Also offers<br />
various vegetable plates, noodles and rice dishes, entrée salads, soups, appetizers and desserts. Specialties include Chang's<br />
Spicy Chicken, Oolong Marinated Sea Bass and Mongolian Beef—quickly cooked steak with scallions and garlic.<br />
Accompaniments and appetizers include chicken in soothing lettuce wrap and Sichuan style long beans. Entrees: $8–$13.<br />
Check Averages: $17. Wine accounts for 20% of revenue<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
466
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Pei Wei Asian Diner, operated by P.F. Chang’s China Bistro, currently has 21 units in Arizona, California, Colorado and Texas.<br />
With dedicated takeout entrances and cash registers, units do about 40% of sales in takeout. The concept has entered two<br />
new markets this year, opening in Denver and Houston, and plans to debut in Las Vegas later this year. Its greatest<br />
concentration of units is in the Phoenix-Scottsdale area, where it has 10. Pei Weis are being opened only in markets with<br />
P.F.Chang’s locations. The company believes that there will be between three and five Pei Weis for every P.F. Chang’s in a<br />
market. In Phoenix, it now has five bistros and 10 Pei Weis. Units range in size from 2,600 sq.ft.–3,800 sq.ft. and include new<br />
construction as well as refurbished spaces. (Nation’s Restaurant News; Restaurants and Institutions)<br />
P.F. Chang’s China Bistro plans to open 16 China Bistro restaurants and 22 Pei Wei Asian Diners in 2004.<br />
(RestaurantBiz.com 10/3/03)<br />
<strong>Menu</strong> Development |<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
P.F. Chang’s is rolling out six poached menu options in a bid to appeal to health-conscious diners. The dishes are poached<br />
versus prepared in a wok. A company spokesman noted that the strategy may also be expanded to the company’s 16 Pei Wei<br />
Asian Diners. (Restaurant Business Daily News)<br />
P.F. Chang’s recently changed one of its preparation techniques to be more reflective of how it is performed in China.<br />
Velveting is a type of par-cooking normally done in oil, but corporate chef Paul Muller noticed that Chinese chefs were<br />
velveting in water instead. Reasoning that most dishes were getting their flavor from marinades rather than the oil, Mueller<br />
tried velveting the chain’s dishes in chicken stock. The food not only tasted better, with the ginger, garlic, soy and oyster sauce<br />
flavors more prominent, but nutritional analysis also found that the dishes were also less fattening when prepared in this<br />
manner. The process is now being used for nine dishes: almond-cashew chicken; Cantonese shrimp; Cantonese scallops;<br />
ginger chicken with broccoli; chicken with black bean sauce; shrimp with lobster sauce; moo goo gai pan; and mango chicken.<br />
(Nation’s Restaurant News, 7/14/03, p45)<br />
P.F. Chang’s retooled its menus to cater to athletes. A new section called “Team in Training” features menu items, some<br />
existing offerings and some new, divided into proteins and carbohydrates, with fat and calorie information also provided.<br />
(Restaurant Business Daily News 9/22/03)<br />
Personnel |<br />
Richard Federico, Chairman<br />
Robert Vivian, President<br />
Kristina Cashman, Chief Financial Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
467
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
P.F. Chang’s China Bistro is rolling out a line of poached items that the company expects to appeal to health-conscious diners.<br />
The cooking method may be expanded to the company’s 16 Pei Wei locations. (RB 5/15/03 p19)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
468
<strong>RISE</strong> COMPANY PROFILE<br />
P.F. Chang’s China Bistro founder Paul Fleming is working on a new brand offering Chinese food. Fleming approached P.F.<br />
Chang’s about investing in the venture, according to chief executive Rick Federico. Federico said Chang’s declined, deeming<br />
the new brand to be redundant. He said Fleming’s concept will have a $13 check average, falling between Pei Wei Asian Diner<br />
and P.F. Chang’s. A spokesman for Fleming had no comment on Federico’s statements and would not release the name of<br />
the new brand. (RB 5/15/03 p14)<br />
Mimi’s Café’s owners planned to open the 260-seat Lazy Dog Café in Westminster, CA, in July. It is being launched by Chris<br />
Simms and his father, Tom Simms, the second-generation owner of the 72-unit Mimi’s chain, in partnership with chef Gabriel<br />
Caliendo, formerly of the Ritz-Carlton Laguna Niguel in Dana Point, CA, and general manager Jason Ruckart, formerly with<br />
P.F. Chang’s China Bistro. The restaurant is projected to yield checks averaging $14–$15 per person. The owners would like<br />
to replicate the concept if it does well. (NRN 6/23/03 p48)<br />
Consumer Reports’ annual survey of readers found that 69% were completely or very satisfied with their dining experiences at<br />
the 88 largest U.S. chain restaurants. The survey’s 71,000 responses represented nearly 166,000 meals eaten between April<br />
2001 and April 2002. For a chain to be included in the survey results, it had to be mentioned in at least 350 responses. New on<br />
this year’s list were J. Alexander’s; Maggiano’s Little Italy; Azteca Mexican; Hops Restaurant, Bar & Brewery; McCormick &<br />
Schmick’s; and P.F. Chang’s China Bistro. Capturing the top ranking in seven of the survey’s eight ratings categories was First<br />
Watch, a Sarasota, FL-based chain of 44 daytime-only restaurants. (NRN 6/30/03 p38)<br />
Households with annual incomes exceeding $200,000 are 86% more likely to include wine drinkers than the average American<br />
household, according to Mediamark Research Inc., New York, NY. Of those in the highest income bracket, 52% said they<br />
drink wine compared with 28% of those earning between $50,000 and $74,999 and just 15% of Americans with household<br />
incomes of less than $25,000. (AD 6/03 p8)<br />
Paul Lee’s Chinese Kitchen is the name of the new restaurant concept being developed by Paul Fleming, according to<br />
sources. Fleming developed the P.F. Chang’s China Bistro, Pei Wei, Fleming’s Prime Steakhouse & Wine Bar and Z’Tejas<br />
chain concepts. His new full-service concept reportedly was designed to generate average checks between the $17.50 at P.F.<br />
Chang’s and the $8.50 at its fast-casual sibling, Pei Wei. He is said to have leased sites for Paul Lee’s Chinese Kitchens in<br />
Arizona and California. Fleming previously took P.F. Chang’s public and entered into a joint-venture deal with Outback<br />
Steakhouse Inc. to expand Fleming’s Prime. In 2001 he said he was stepping away from restaurant operations to assume the<br />
chairmanship of Americans for Community and Faith-Centered Enterprise. (NRN 7/28/03 p6)<br />
P.F. Chang’s China Bistro Inc. for the third quarter ended September 28, reported revenues increased 30% to $139.7 million<br />
from $107.1 million compared to the same quarter a year ago. (NRN Daily NewsFax 10/2/03)<br />
P.F. Chang’s China Bistro Inc. for the third quarter ended September 28, reported net income increased 47% to $6.5 million.<br />
Revenues increased 31% to $139.7 million. (NRN Daily NewsFax 10/23/03)<br />
P.F. Chang’s China Bistro Inc. for the third quarter ended September 28, reported revenues increased 31% to $139.7 million<br />
compared to the same quarter last year. (Nation’s Restaurant News 11/3/03 p20)<br />
P.F. Chang’s China Bistro was the highest-ranked restaurant company on Forbes magazine’s “200 Best Small Companies” list<br />
this year. It ranked No. 24 and was followed by Krispy Kreme Doughnuts at No. 29. Also on the list were Sonic Corp., Total<br />
Entertainment Restaurant Corp., Panera Bread, California Pizza Kitchen and IHOP Corp. (NDNF 11/19/03)<br />
P.F. Chang’s for the fourth quarter ended December 28, reported a 31% increase in revenues to $151.3 million from $115.9<br />
million the same quarter a year ago. (NRN Daily NewsFax 1/9/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
469
Palm Restaurants<br />
Headquarters<br />
3113 Rhode Island Ave. N.W., Washington, DC 20036-3101 USA<br />
Tel: (202) 775 7256 Fax: (202) 775 8292<br />
www.thepalm.com<br />
Ownership: Private<br />
Segment: Full Service Steak - Fine Dining<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 98,000 90,000 -<br />
Company-owned ($000) 98,000 90,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 22 21 -<br />
Company-owned 22 21 -<br />
Franchised - - -<br />
International Sales ($000) 12,000 10,000 -<br />
International Units 3 2 -<br />
Average Sales/Unit ($000) 5,200 5,000 -<br />
Concept Positioning |<br />
Palm Restaurants is a chain of full-service, upscale restaurants specializing in steak and lobster. Units are open for lunch and<br />
dinner Monday through Friday, and dinner-only Saturday evenings. All units are located in major metropolitan markets. It<br />
draws from both a local and convention-going/traveler-oriented clientele.<br />
The atmosphere is brash and bustling with sawdust-covered floors. Walls are covered with caricatures of local notables and<br />
national celebrities.<br />
To maintain its high level of quality, the company also runs its own wholesale meat company.<br />
The first Palm was opened in New York City by Pio Bozzi and John Ganzi in 1926. Originally, the duo specialized in Italian<br />
foods from their native Parma, Italy, areas. Steaks were added early on but its reputation for seafood was originated by third<br />
generation owners, Wally Ganzi and Bruce Bozzi, in the 1970s. The latter duo is also credited with expanding the concept<br />
beyond its New York base. Palm continues to add, on average, one unit per year, expanding in existing and new markets<br />
alike. Recently, the restaurant has added a customer-loyalty program, the 837 Club, so named because the first Palm<br />
Restaurant was located at 837 Second Avenue in New York. Rewards range from gift certificates to trips to the Colony Beach<br />
and Tennis Resort. Alrfred L. Thimm, Jr. currently serves as president and COO.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Double Steak—36 oz. New York Strip for 2 & Jumbo Maine Lobsters—3 lb or larger. Also offers fresh<br />
seafood such as crab cakes, swordfish, salmon, shrimp as well as chicken, veal, lamb, and pasta entrees. Sides include freshcooked<br />
vegetables such as broccoli, creamed spinach and strong beans, salads such as sliced tomato and onion or Monday<br />
Night Salad and potatoes including its signature Half and Half—half cottage fries, half fried onions. Full liquor service.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
470
Personnel |<br />
Alfred Thimm, Chairman<br />
James Longo, Chief Financial Officer<br />
Walter Ganzi, Vice President of Operations<br />
Walter McClule, Vice President of Marketing<br />
Michael Ronan, Director of Purchasing<br />
Anthony Tammero, <strong>Menu</strong> Development/R&D<br />
Jeff Phillips, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Southwest Florida International Airport awarded a 10-year contract to HMSHost Corp. The deal, worth $146 million, calls for<br />
the management firm to operate several restaurants in a new midfield terminal scheduled to open in June 2005. HMSHost will<br />
partner with PJLF Enterprises on the project, which will include Starbucks Coffee, Maggie Moo’s Ice Cream and Treatery and<br />
Palm City Market units. (NDNF 9/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
471
Panda Express<br />
Headquarters<br />
899 El Centro St., South Pasadena, California 91030 USA<br />
Tel: (626) 799 9898 Fax: (626) 403 8600<br />
Ownership: Private<br />
Segment: Limited Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 400,032 342,071 283,978<br />
Company-owned ($000) 354,835 305,623 251,450<br />
Franchised ($000) 45,197 36,448 32,528<br />
U.S. Number of Units 505 428 356<br />
Company-owned 428 363 305<br />
Franchised 77 65 51<br />
International Sales ($000) 1,656 3,708 4,303<br />
International Units 4 7 7<br />
Average Sales/Unit ($000) 919 920 824<br />
Concept Positioning |<br />
Panda Express is a chain of quick-service restaurants open for lunch and dinner. The menu includes authentic regional<br />
Chinese cuisine. Five different prototypes of units are available and range in size from 800–2,600 sq. ft. However, the bulk of<br />
current units are located in malls. A steam table and cafeteria-like line, divided into stations, is its typical service format.<br />
On an aggressive expansion program, Panda Management is using nontraditional sites such as supermarkets, casinos, sports<br />
arenas, universities and airports to fuel much of its growth.<br />
In addition to Panda Express, the company also has several full-service restaurants under the names of Panda Inn (six units)<br />
and Hibachi-San Japanese (seven units).<br />
Panda Management was founded in 1983 by Andrew and Peggy Cherng with the opening of a Panda Inn dinner house. In<br />
2001, Panda Restaurant Group bought a 40% ownership stake in FoodBrand, LLC, a wholly owned subsidiary of the Mills<br />
Corporation, a shopping center developer.<br />
<strong>Menu</strong> Positioning |<br />
Mandarin and Szechwan wok-cooked entrees including orange flavored chicken in sweet and spicy chili sauce, vegetable<br />
chop suey and fried shrimp served with sweet and sour sauce with onions, bell peppers and pineapple chunks. Available in<br />
regular and large portions. Also menus combination plates served with fried rice or chow mein. Sides range from soup of the<br />
day to egg roll and fried rice. <strong>Menu</strong> Prices: $2.99–$7.99. Check Averages: $6.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
472
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Panda Express is once again offering its Festival of Shrimp promotion through June 14. This year’s promotion includes six<br />
new shrimp entrees. Offered on a rotating schedule throughout the event, they include Shrimp and Sugar Peas in Oyster<br />
Sauce; Cousin Thai’s Spicy Shrimp, Black Pearl Shrimp, Spicy Shrimp with Cashews; Tangy Shrimp with Pineapple; and Kung<br />
Pao Shrimp. Guests may also add a shrimp entrée to combo meals for an additional $1 surcharge. (NRN Daily NewsFax)<br />
Panda Express launched a 12-week “Chef’s Celebration of Flavors” promotion. During the event, one spicy and one savory<br />
chicken dish will be showcased every four weeks. New offerings include Chicken Breast with Sugar Peas in Oyster Sauce<br />
(stir-fried with diced red bell peppers, button mushrooms, ginger, garlic and oyster sauce) and Spicy Firecracker Chicken. Both<br />
are priced at $5.99 for a 16-oz. portion and $8.99 for a 26-oz. size. Other dishes include a Cousin Thai’s Spicy Chicken Breast<br />
with stir-fried red bell peppers, cilantro and peanuts in a spicy red chili pepper sauce. (NRN Daily NewsFax, 7/18/03)<br />
News & Other |<br />
The Chi-Chi’s Mexican Restaurant near Pittsburgh was linked by investigators to all 510 confirmed cases of hepatitis A in the<br />
state of Pennsylvania. Scallions imported from Mexico were officially named the likely cause of the massive hepatitis epidemic.<br />
Chi-Chi’s said that health officials had absolved its employees of responsibility for the liver disease, which claimed three lives<br />
as it spread through at least five states. In response to the outbreak, Taco Bell, Chili’s, Eat ‘n Park and Panda Express were<br />
among the chains that pulled green onions from their kitchens in November. (NRN 11/24/03 p1 & 12/1/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
473
Panda Inn<br />
Headquarters<br />
899 El Centro St., South Pasadena, California 91030 USA<br />
Tel: (626) 799 9898 Fax: (626) 403 8600<br />
www.pandainn.com<br />
Ownership: Private<br />
Segment: Limited Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 12,127 12,033 13,061<br />
Company-owned ($000) 12,127 12,033 13,061<br />
Franchised ($000) - - -<br />
U.S. Number of Units 5 5 6<br />
Company-owned 5 5 6<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,425 2,349 2,176<br />
Concept Positioning |<br />
The five-unit California based chain is part of the Panda Restaurant Group, which features 384 locations in 35 states and<br />
Canada. The Mandarin style of cooking is employed throughout, and unlike the Panda Express locations, which feature mainly<br />
carryout meals, Panda Inn is a full-service restaurant.<br />
Interiors feature dark wood tables and chairs and indirect lighting to present an intimate yet comfortable atmosphere. The<br />
company is expanding rapidly through the Panda Express concept and had sales of more than $450 million in 2001.<br />
Panda Management was founded in 1983 by Andrew and Peggy Cherng with the opening of a Panda Inn dinner house. In<br />
2001, Panda Restaurant Group bought a 40% ownership stake in FoodBrand, LLC, a wholly owned subsidiary of the Mills<br />
Corporation, a shopping center developer.<br />
<strong>Menu</strong> Positioning |<br />
The menu includes a full selection of traditional Asian appetizers and Mandarin cuisine featuring seafood, chicken and beef<br />
sautéed with fresh ingredients.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
474
<strong>RISE</strong> COMPANY PROFILE<br />
Panera Bread/Saint Louis Bread Co.<br />
Headquarters<br />
6710 Clayton Rd., Richmond Heights, Missouri 63117 USA<br />
Tel: (314) 633 7100 Fax: (314) 633 7200<br />
www.panerabread.com<br />
Ownership: Public<br />
Segment: Limited Service Other Sandwich<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 755,410 529,444 350,800<br />
Company-owned ($000) 212,600 157,764 125,300<br />
Franchised ($000) 542,810 371,680 225,500<br />
U.S. Number of Units 478 369 262<br />
Company-owned 132 110 90<br />
Franchised 346 259 172<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,840 1,748 1,392<br />
Concept Positioning |<br />
The Panera/Saint Louis Bread Co. concept is an upscale self-service operation with units located in suburban strip centers,<br />
freestanding sites and in major metropolitan markets. Currently, the company is moving beyond its Midwest base and is in<br />
operation in 30 states. To facilitate this move, it is using the name Panera Bread outside of the St. Louis area.<br />
Three prototypes are used and the newest averages 4,000–4,500 sq. ft. and seats 90–100 patrons. Separate counters for<br />
retail bakery sales and its soup/salad/sandwich menu items are featured. Dining areas, partially separated from retail counters,<br />
have both booth and table and chair seating. Natural woods, rich colors and contemporary lighting add to an upscale<br />
ambiance. Many also have an outdoor seating area.<br />
Most pastry items are prepared in a central production facility, frozen and then baked off in viewing ovens in each unit.<br />
Regional commissaries provide its unbaked sourdough bread and bagel products on a daily basis. Some 40% of sales are<br />
generated by bakery items, including those used on-premise for its food and sandwich preparation.<br />
Au Bon Pain Co., Inc. acquired the concept in late 1994 for $25 million. In March 1999, stockholders of Au Bon Pain Co. Inc.<br />
approved the sale of its flagship Au Bon Pain brand. Upon completion of the deal, the new parent of Panera/Saint Louis Bread<br />
became Panera Bread Co.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
475
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Some 50 varieties of artisan and sourdough breads such as 9-grain, Asiago cheese and sun dried tomato and other baked<br />
goods including bagels. Beverages range from soft drinks to specialty coffee and espresso. Also menus soups, salads and<br />
sandwiches as individual or combinations. Sandwiches range from chicken salad on croissant, Veggie on 9-grain and smoked<br />
turkey on sourdough to Asiago roast beef on Asiago cheese baguette, Tuscan chicken on rosemary and onion focaccia and<br />
Bacon Turkey Bravo on tomato basil bread. Also features a 2-ft. party sandwich that feeds 8-12. Salads include Fandago,<br />
Chicken Oriental, Greek and Caesar with or without chicken. Specific items changed about 5 times a year. <strong>Menu</strong> Prices:<br />
$3.75–$24.95 Check Average: $6.19.<br />
<strong>Menu</strong> Development |<br />
Panera has added a new line of artisan breads. The eight offerings are made in Stone Deck Ovens imported from Italy and<br />
feature a crackling crust resulting from the intense heat used in the bottom-up baking process. Eight varieties are now<br />
available, including Three Cheese Semolina, Kalamata Olive and Country. (Cincinnati Enquirer)<br />
Fast-casual menus are not always as healthy as some consumers perceive them to be. Emphasizing fresh ingredients and<br />
made-to-order preparations in many cases, diners view the segment as a healthy alternative to traditional fast food. And while<br />
many of these concepts do offer a wide range of nutritious fare, other choices were recently cited for nutrition surprises by the<br />
Center for Science in the Public Interest (CSPI). Examples noted as high in fat and/or calories included Panera’s Broccoli<br />
Cheddar soup, Au Bon Pain’s mozzarella sandwich and the Cobb salad at Briazz. Good nutritional choices included Au Bon<br />
Pain’s Fields & Feta Wrap, Panera’s vegetarian black bean soup and the orzo pasta salad at Briazz. (Restaurant Business<br />
Daily News)<br />
Panera introduced three new sandwiches served on ciabatta. The new bread is described as a rustic Italian-inspired loaf with<br />
a delicate flavor that does not compete with ingredients and is also billed as a complement for foods ranging from soup to<br />
omelets. The new sandwich options are: ■ Coronado Carnitas Panini—marinated pork with spicy ancho lime sauce,<br />
caramelized onions and mozzarella cheese stacked on ciabatta and pressed on a panini grill ■ Turkey Fresco—ciabatta bread<br />
spread with creamy cucumber sauce and layered with smoked turkey, fresh tomatoes, lettuce, cucumbers and red onions ■<br />
Garden Veggie—sweet peppers and gorgonzola cheese with fresh tomatoes, lettuce, cucumbers, red onions and cucumber<br />
sauce on ciabatta. (Company Release)<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Ethnic foods are gaining visibility on chain menus, even in concepts that are not specifically devoted to an ethnic cuisine.<br />
Mexican, Italian, Asian, Mediterranean and Caribbean/Latin are showing particular strength. Asian is evident at T.G.I. Friday’s<br />
with its Shrimp Summer Rolls. The item features poached shrimp rolled inside a spring roll with asparagus, Asian vegetables<br />
and noodles tossed in peanut dressing flavored with cilantro. Soy-ginger dipping sauce accompanies it. An Indian influence<br />
can be found on Panera’s menu, which includes Chai Tea Latte (brewed black tea with honey, vanilla, cardamom, cinnamon,<br />
ginger and steamed milk). According to research on the top 200 chains from Food Beat Inc., menu items on the rise include<br />
Mexican omelets and breakfast quesadillas, rice flavored with citrus and spices, Asian noodles, artichokes, several seafood<br />
varieties, dipping sauces, plantains, mangoes, pineapples, bananas, salsa and flavored breads. <strong>Menu</strong> descriptions are also<br />
becoming more detailed, and often include the origin of ingredients (e.g., Atlantic salmon) as well as a specific variety (e.g.,<br />
Serrano or ancho chilies). The growth of ethnic foods on chain menus is attributed in part to greater travel by Americans, who<br />
as a result have become exposed to new foods and flavors and would like to see these elements in foods they can get at<br />
home. (The State Journal Register)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
476
<strong>RISE</strong> COMPANY PROFILE<br />
Chai is a spiced tea drink popular in northern India that is now gaining ground on U.S. menus. Made with a blend of teas, milk<br />
and aromatic spices such as cardamom, cinnamon, cloves, ginger, nutmeg and pepper, it can be served hot or cold. At Port<br />
City Java based in Wilmington, NC, chai is an appealing alternative for guests who don’t drink coffee. Several major chains are<br />
now serving chai drinks, including Dunkin’ Donuts, Starbucks, Panera and Atlanta Bread. Starbucks is currently serving chai<br />
tea lattes in both hot and iced varieties as well as chai cream frappuccinos. Vancouver, WA-based Burgerville even offers an<br />
Oregon Chai milk shake. (Nation’s Restaurant News, 8/4/03, p31)<br />
Tomatoes are plentiful this time of year and are appearing in a number of menu applications, ranging from soups and salads to<br />
appetizers. Panera is offering Ginger-Tomato Florentine Soup, while Café Boulud in New York is serving a Tasting of<br />
Gazpachos. The University of California Catering Department is featuring fresh tomatoes on Basil-Infused Crostini with feta<br />
cheese, and in St. Helena, CA, Pinot Blanc has an Heirloom Tomato Salad that includes fresh mozzarella, basil, pine nuts and<br />
pecorino cheese. (Restaurants & Institutions, 9/1/03, p15)<br />
Vegetarians can now enjoy a greater variety of options on fast-food menus as operators work to meet demand for healthier<br />
foods and appeal to consumers, especially women, who are likely to eat elsewhere to find healthy choices. Upgraded salads,<br />
soy burgers, veggie wraps and soups, and yogurt smoothies are increasingly common. Burger King now offers a Veggie<br />
Burger, which can be prepared on a separate grill from its meat options upon request. It also has several side salads. Chipotle<br />
positions itself as a fresher approach to Mexican and offers a variety of meatless options, including a vegetarian burrito that<br />
can be customized, a side of rice and beans, and guacamole. McDonald’s also has a McVeggie Burger and has supplemented<br />
its menu with a line of premium salads served with Newman’s Own dressings. Subway offers a Veggie Delite sandwich, and<br />
select stores offer Gardenburger products. Wendy’s now has a range of meatless options, including four Garden Sensations<br />
salads and baked potatoes with several meatless toppings. Panera also broadened its vegetarian options this year. While it<br />
previously only offered vegetarian salads and soups, it now serves a Garden Vegetable Sandwich on ciabatta bread.<br />
(Vegetarian Times, 9/03, p63)<br />
Panera Bread plans to introduce 3 new breads that contain less than 10 net carbohydrates. The chain will also debut a series<br />
of low-carbohydrate lunch alternatives in 2004 that feature the new breads. (RestaurantBiz.com 11/3/03)<br />
Panera is launching low-carb baked goods to address the popularity of low-carbohydrate diets that limit many of its core<br />
offerings. The chain is planning three breads that have fewer than 10 grams of net carbohydrates. These breads will serve as<br />
a base for a collection of low-carb lunch options to be launched next year. Low-carb bagels are also being developed.<br />
(Restaurant Business <strong>Menu</strong> Strategies Newsletter 11/5/03)<br />
Panera introduced two new baked goods for its latest Seasonal Celebration. They are a Chocolate Raspberry Brownie topped<br />
with Dickenson’s red raspberry preserves and white chocolate curls and a Chocolate Hazelnut Macaroon that includes<br />
sweetened coconut, hazelnuts, semi-sweet chocolate chips and cranberries. (Company Web Site 12/18/03)<br />
Franchise Activity |<br />
Panera Bread Co. signed a deal acquiring 12 franchised units in Toledo, OH, and Ann Arbor, MI, for $14.1 million. The deal<br />
gives the chain future area development rights for the two markets. (RestaurantBiz.com 10/31/03)<br />
Panera signed a development deal with Take Home the Bread LLC. Under the agreement, Take Home the Bread LLC will<br />
open 20 bakery cafes outside New York City with the first location slated to open by the end of next year. (Restaurant<br />
Business Daily News 12/12/03)<br />
Technology |<br />
Panera Bread Co. is installing free wireless Internet access at company-operated and participating franchised Panera Bread<br />
and St. Louis Bread Co. stores. Free wireless access already is offered at about 70 Panera and Saint Louis Bread locations,<br />
including units in the Chicago; Detroit; Jacksonville, FL; St. Louis; and Washington, DC, markets and at least 60 more units will<br />
offer the wireless access by year’s end. (NDNF 8/6/03)<br />
Panera Bread Co. rolled out free Wi-Fi connections to company-operated and select franchise restaurants. The initial<br />
introduction includes 70 units, with another 60 to be equipped by year-end. (Nation's Restaurant News 8/18/03 p112)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
477
Personnel |<br />
Ron Shaich, Chairman<br />
Paul Twohig, Chief Operating Officer<br />
Mark Hood, Vice President of Finance<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Panera Bread Co. earned $21.8 million in 2002, a 65% increase from $13.1 million in 2001. Revenues for fiscal ‘02 reached<br />
$213 million compared to $158 million the previous year and systemwide sales grew 43% to $755 million. Separately, the<br />
company is exploring the meal delivery and to-go business in an initiative it calls “Via Panera.” In other news, Panera<br />
proclaimed 2003 the year of Italian ciabatta bread. In addition to producing freshly baked loaves, the ciabatta will be the base<br />
for three new sandwiches to be introduced during the year. (FIR 3/3/03 p6; R&I 3/1/03 p64; MBN 3/11/03 p14)<br />
Panera Bread Co. plans to open 120 new bakery-cafes this year after adding 100 new stores in 2002. As of the end of 2002,<br />
about 70% of its units were owned by franchisees. In related news, Panera expected to open its first store in the western U.S.<br />
in May in Las Vegas, NV. It will be located in the new Galleria Pavilion area at the Galleria Mall in Henderson, NV. Four more<br />
units are planned for Las Vegas over the next 12 months. (FIR 4/7/03 p4; 4/21/03 p8; MBN 4/22/03 p9)<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
A recent study from Tufts University revealed that although many consumers perceive menu items in the quick-casual<br />
segment to be healthier than traditional fast-food, some of those foods are higher in both fat and calories. According to its<br />
research, a McDonald’s Quarter Pounder with Cheese has less fat and calories than both Panera’s Smoked Ham & Swiss<br />
sandwich and Baja Fresh’s Steak Burrito. It also revealed that Jack in the Box’s Chicken Fajita Pita contained less than half<br />
the fat and calories of Au Bon Pain’s Chicken Caesar Wrap and a regular-sized McDonald’s hamburger and six-inch turkey<br />
breast sub from Subway both have less calories and fat than a traditional vegetable sandwich on multigrain bread at Panera.<br />
(Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
478
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Panera Bread Co. is testing an off-premise concept called Via Panera, company management told investors. Details about the<br />
initiative were not available. (RB 6/15/03 p10)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
Panera Bread Co. plans to expand capacity of current units to handle strong average-unit volume. The company is rolling out<br />
a new service system that it said boosts lunch capacity by 50% in the same space as the current system. In addition, new<br />
sandwich bars and new cash registers are being installed in existing units. Ron Shaich, Panera’s chairman and chief executive<br />
officer, told investors in a conference call that most of its Panera Bread and St. Louis Bread Co. stores were built with an<br />
expectation of annual volumes of $1.2 million and stores are doing more than $2 million. The Panera system was expanded by<br />
30% over the last 12 months, according to Shaich, with the addition of 123 new bakery-cafes. Thus far, 57 units have been<br />
opened in 2003. Panera has a strong demand for new franchises, with a backlog of 450 franchised-unit commitments. In the<br />
last nine months, it has doubled the size of its development department to more than 50 people who focus on real estate,<br />
design and construction. Shaich noted that Panera’s new artisan-bread program has been rolled out to 55% of the system and<br />
should be in two-thirds of units by the end of 2003. In related news, franchisee California Bread LLC opened Panera’s first<br />
Southern California branch in Newport Beach, CA, in August. (NRN 8/25/03 p4; NDNF 8/28/03)<br />
Panera Bread Co. for the four weeks ended October 4, reported same-store sales at company-owned restaurants increased<br />
0.6% and systemwide same-store sales increased 0.6%. (NRN Daily NewsFax 10/17/03)<br />
Panera Bread for the third quarter ended October 4, reported revenues increased 28% compared to the same quarter last<br />
year. Systemwide same-store sales increased 0.7%. Same-store sales at company owned units increased 2.2%. (NRN Daily<br />
NewsFax 10/31/03, RestaurantBiz.com 10/31/03)<br />
Panera Bread for the quarter ended October 4, reported same-store sales increased 1%. Same-store sales at companyowned<br />
units increased 2.2%. (RestaurantBiz.com 11/3/03)<br />
Panera Bread Co. for the four weeks ended November 1, reported systemwide same-store sales decreased 1.7% compared<br />
to the same period a year ago. Same-store sales increased 1.7% at company-owned units and decreased 3.1% at franchised<br />
units. (NRN Daily NewsFax 11/14/03)<br />
Panera Bread Co. for the third quarter ended October 4, reported revenues increased 28% to $84 million compared to the<br />
same quarter last year. Systemwide sales increased 30% to $233.9 million. (Nation’s Restaurant News 11/10/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
479
<strong>RISE</strong> COMPANY PROFILE<br />
P.F. Chang’s China Bistro was the highest-ranked restaurant company on Forbes magazine’s “200 Best Small Companies” list<br />
this year. It ranked No. 24 and was followed by Krispy Kreme Doughnuts at No. 29. Also on the list were Sonic Corp., Total<br />
Entertainment Restaurant Corp., Panera Bread, California Pizza Kitchen and IHOP Corp. (NDNF 11/19/03)<br />
Panera Bread for the four weeks ended December 27, reported that systemwide same-store sales rose 2.3% at company<br />
owned units and .7% overall. (NRN Daily NewsFax 1/9/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
480
Papa Gino's<br />
Headquarters<br />
600 Providence Highway, Dedham, Massachusetts 02026 USA<br />
Tel: (781) 461 1200 Fax: (781) 467 1721<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 119,000 125,000 122,500<br />
Company-owned ($000) 119,000 125,000 122,000<br />
Franchised ($000) - - 500<br />
U.S. Number of Units 170 180 172<br />
Company-owned 170 180 172<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 700 710 709<br />
Concept Positioning |<br />
Papa Gino's owns and operates quick-service restaurants specializing in pizza. Customers may choose to dine-in or takeout.<br />
Delivery is available at most locations and accounts for some 35% of sales. Units seat 80–120 diners and have a casual<br />
ambiance. Many are freestanding or located in shopping malls and are open for lunch, dinner and snacks.<br />
In addition to its traditional sites, Papa Gino's has moved into the non-traditional arena through licensing and other<br />
arrangements. Specific sites include Foxboro Stadium, Fenway Park, the University of Connecticut and over 100 school<br />
systems.<br />
Approximately 140 units are served by a central commissary that produces pizza dough as well as shipping products such as<br />
cheese. The remaining stores make their pizza dough on-premise.<br />
The company was founded by Michael A. Valerio in 1967. In late 1991, a private investor group purchased the chain. In<br />
August 1997, the company acquired D’Angelo Sandwich Shops from PepsiCo as part of the spin-off of its restaurant holdings.<br />
Terms were not disclosed.<br />
Current management includes Thomas J. Galligan, III, president and chief executive officer; Lew Shaye, senior vice president<br />
restaurant development; Rick Wolf, senior vice president operations; Louis Psallidos, senior vice president finance and chief<br />
financial officer; and Vincent Brown, vice president real estate and franchising.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: thin crust pizzas. Also menus 6–7 pasta specialties, salads, appetizers and snacks as well as submarine,<br />
pocket sandwiches. Beer and wine available in some units. Check Averages: $8–$10.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
481
Personnel |<br />
Thomas Galligan, Chief Executive Officer<br />
Rick Wolf, Senior Vice President of Operations<br />
Bruce Archambault, Director of Purchasing<br />
William Chiccarelli, Vice President of Marketing<br />
Louie Psallidas, Chief Financial Officer<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Papa Gino’s, a 165-unit New England pizza chain, currently is developing a new restaurant design that should be finalized by<br />
year’s end. Last year, the chain began accepting credit cards. It has found that the average check is 80% higher when a check<br />
is paid for with the card rather than with cash, but card usage currently accounts for less than 10% of transactions. Papa<br />
Gino’s system also includes five locations in service areas along the Massachusetts Turnpike and several licensed alternative<br />
locations. Its parent company also operates 210 D’Angelo’s sandwich shops. Separately, Papa Gino’s owner BancBoston<br />
Capital, the private equity arm of FleetBoston Financial Corp., reportedly is seeking to sell the chain. (RB 4/15/03 p30; NDNF<br />
5/9/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
482
Papa John's<br />
Headquarters<br />
2002 Papa John's Blvd. P.O. Box 99900, Louisville, Kentucky 40269 USA<br />
Tel: (502) 261 7272 Fax: (502) 261 4416<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,749,500 1,747,000 1,669,000<br />
Company-owned ($000) 430,000 446,000 457,000<br />
Franchised ($000) 1,319,500 1,301,000 1,212,000<br />
U.S. Number of Units 2,585 2,589 2,533<br />
Company-owned 585 601 631<br />
Franchised 2,000 1,988 1,902<br />
International Sales ($000) 108,000 104,000 17,700<br />
International Units 351 333 79<br />
Average Sales/Unit ($000) 747 739 724<br />
Concept Positioning |<br />
Papa John's owns, operates and franchises limited menu restaurants that offer high quality, value-priced pizzas for delivery or<br />
carry-out. Units are open seven days a week from 11:00 a.m. to 12:30 a.m. during the week and until 1:30 a.m. on Friday and<br />
Saturday nights. Fresh, not frozen dough, real cheese, pizza sauce made with fresh tomatoes and a proprietary<br />
seasoning/spice mix enables it to concentrate on product consistency.<br />
Units range in size from 900–1,600 sq. ft. and are generally located in strip shopping centers or as freestanding locations.<br />
Each unit has backlit awnings, neon window designs and other visible signage. Interiors are a vibrant red and white with green<br />
striping. <strong>Menu</strong> boards are included for easy customer ordering and counters are designed to allow customers to watch dough<br />
spinning and other parts of the preparation process.<br />
A commissary system supplies pizza dough as well as food and paper products to both company and franchised restaurants.<br />
There are currently 11 commissaries that serve the system.<br />
Papa John's current expansion strategy is to cluster units in targeted markets as well as move out in concentric rings from its<br />
commissary system. Co-development with franchisees also helps to achieve a more rapid penetration. In addition, Papa<br />
John’s continues to convert its Perfect Pizza system in the U.K. to the Papa John’s brand. Complete conversion is expected to<br />
take another two to three years.<br />
The company opened its first restaurant in 1985 and commenced with franchising in 1986. It went public in June 1993. In late<br />
1999, the company announced it had acquired 205-unit Perfect Pizza Holdings Ltd., the largest independent delivery and<br />
carry-out pizza chain in the United Kingdom, for some $32.5 million.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Original crust 10-, 14- and 16-in. pizzas. Toppings include onions, green peppers, sausage, ham, corned<br />
beef, back, peppers, olives, anchovies and chunky Italian sausage. Has Better Thin crust option as well. Also menus bread<br />
sticks, cheese sticks and soft drinks. Check Averages: $10.40.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
483
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Papa John’s launched a new grilled chicken Alfredo pizza priced at $10.99. The chain is also now offering grilled chicken as<br />
an optional pizza topping. (NRN Daily NewsFax)<br />
Wendy’s plans to launch chicken strips later this year. According to comments from CEO Jack Schuessler in a conference call,<br />
the item will be added in the second half of 2003. Boneless chicken strips are already popular items at Popeyes, Domino’s,<br />
Hardee’s, KFC and Papa John’s. (Restaurant Business Daily News, 6/9/03)<br />
Papa John’s introduced two new specialty pizzas. Barbecue Chicken & Bacon is topped with grilled all-white chicken breast,<br />
hickory smoked bacon, fresh sliced onion and barbecue sauce, while a Hawaiian Barbecue Chicken Pie has the same<br />
ingredients plus pineapple. Each is being offered for an introductory price of $10.99 through October 26. After that franchisees<br />
may decide whether to retain or raise that price. In other news, the chain has revamped its pepperoni pizza. The new version<br />
features more pepperoni slices, which are now placed on top of the cheese rather than beneath it. (Restaurant Business <strong>Menu</strong><br />
Strategies Newsletter 10/1/03, Nation’s Restaurant News 9/8/03 p6)<br />
International Activities |<br />
Papa John’s International opened the first of several planned restaurants in Greece in Patra. The restaurant is franchised by<br />
Papa John’s Hellas SA. In addition, the chain added its first store in Aruba, a unit franchised by Joy Pizza NV. Papa John’s<br />
operates or franchises 353 international units in 11 markets, including Perfect Pizza, a 142-unit chain in the United Kingdom.<br />
(NDNF 3/6/03)<br />
Papa John’s International franchisee Bahama Papa Ltd. opened the chain’s first unit in The Bahamas on Grand Bahama<br />
Island. With a total of more than 2,933 pizza shops, the Papa John’s system includes corporate-owned and franchised outlets<br />
in Mexico, Honduras, Venezuela, Costa Rica, Puerto Rico, the Untied Kingdom, Saudi Arabia, Canada, Aruba and Greece.<br />
The system also includes 142 Perfect Pizza restaurants in the United Kingdom. (NDNF 3/20/03; FIR 3/24/03 p7)<br />
Papa John’s International entered Asia with two units in Seoul, South Korea, opened by a new franchise group called PJI<br />
Korea Co., Ltd. Papa John’s first foreign unit opened in Mexico City in 1998 and the company now has outlets in 12 foreign<br />
markets. (NRN 8/4/03 p100)<br />
Technology |<br />
Americans are expected to buy $45 billion worth of gift cards this year. Many are credit cards preloaded with cash and<br />
redeemable anywhere that the regular credit cards can be used. Many foodservice operators have entered the fray as well.<br />
Joining Starbucks and other operators in offering such cards are Pizza Hut, which features cards that can be activated in<br />
amounts up to $100, and Panera Bread Co., which is offering cards in denominations from $1–$200. In addition, Papa John’s<br />
International has rolled out a reloadable gift card called the Papa Card with values between $10 and $100 that can be used for<br />
payment of delivery, carryout and online orders. The company has teamed with 20th Century Fox Home Entertainment to offer<br />
card buyers a coupon for $7 off the DVD “X2:X-Men United” or $5 off DVDs purchased at Fox’s Web site. (NW 11/3/03 p78;<br />
SFS 11/03 p17; FIR 11/3/03 p6; NDNF 11/20/03)<br />
Personnel |<br />
John Schnatter, Chairman<br />
Bill Van Epps, Chief Operating Officer<br />
Charles Schnatter, Product Development<br />
Gary Langstaff, Chief Marketing Officer<br />
David Flanery, Chief Financial Officer<br />
Papa John’s International senior vice president and chief resource officer Mary Ann Palmer resigned. (Nation’s Restaurant<br />
News 10/27/03 p92)<br />
Papa John’s named Gary Langstaff chief marketing officer. Langstaff replaces Mary Ann Palmer who resigned in October.<br />
(Restaurant Business Daily News 12/12/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
484
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Papa John’s International reached a confidential settlement of its lawsuit against 40-unit Pizza Magia, which was founded by<br />
former Papa John’s president Daniel Holland. Papa John’s accused Pizza Magia of trademark infringement and unfair<br />
competition, alleging that the upstart chain copied its operations and business methods. Holland, who served as Papa John’s<br />
president from 1989–1995, previously denied his former employer’s accusations. Both chains said that they couldn’t comment<br />
on the settlement. Holland said that the settlement will allow Pizza Magia to focus on growth, with 20 new units planned for this<br />
year. (NRN 6/30/03 p4)<br />
Pizza Magia, a 40-unit takeout and delivery chain, expects to open 15–20 more units by year’s end. It also is upgrading its<br />
garlic-seasoned dipping sauce to eliminate trans fatty acids and saturated fats. In addition, it is switching to a new pepperoni<br />
product with 4% less fat than most varieties, according to the company. In June, Pizza Magia and Papa John’s International<br />
settled a legal dispute in a confidential agreement. Pizza Magia’s chief executive Dan Holland served as Papa John’s<br />
president from 1989–1995. (NRN 7/28/03 p128)<br />
Papa John’s International lowered its earnings estimate for 2003 by up to 27%. The chain lowered its earnings forecast for the<br />
year to between $1.65 and $1.75 per share from an earlier projection of between $2.20 and $2.26. It earned $2.31 per diluted<br />
share in 2002 and said that decreased profitability accounts for 15¢ of the estimated cut. The company said it is consolidating<br />
the results of an affiliated cheese-purchasing corporation, BIBP Commodities Inc., and that the consolidation could have a<br />
significant impact on future results, with cheese price volatility cited. Separately, the chain recently changed its pepperoni<br />
pizza by increasing the number of pepperoni slices and putting them on top of cheese rather than underneath, as it previously<br />
had done. (NDNF 10/9/03; NRN 9/8/03 p4)<br />
Papa John’s International for the quarter ended September 28, reported comparable-store sales decreased 4.8%.<br />
(RestaurantBiz.com 10/8/03)<br />
Papa John’s International Inc. for the third quarter, reported revenues decreased 3.6% to $219.6 million compared to the same<br />
quarter a year ago. Same-store sales decreased 4.8%. (NRN Daily NewsFax 10/30/03)<br />
Papa John’s International Inc. for the third quarter ended September 28, reported revenues decreased 3.6% to $219.6 million<br />
compared to the same quarter last year. Systemwide same-store sales decreased 4.8% but increased 4.5% during the month<br />
of October. (Nation’s Restaurant News 11/10/03 p44)<br />
Papa John’s for the four weeks ended November 23, reported that same-store sales increased 0.9%. (NRN Daily NewsFax<br />
12/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
485
Pappas Restaurants<br />
Headquarters<br />
642 Yale St., Houston, Texas 77007 USA<br />
Tel: (713) 869 0151 Fax: (713) 869 2359<br />
www.pappas.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 200,000 175,000 150,000<br />
Company-owned ($000) 200,000 175,000 150,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 66 62 61<br />
Company-owned 66 62 61<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,100 2,822 2,459<br />
Concept Positioning |<br />
The Pappas Group owns and operates an array of restaurant concepts ranging from Tex-Mex, Cajun and Italian to seafood,<br />
steakhouses and coffee shops. Concepts include: Pappadeaux (Cajun), Pappasito's Cantina (Tex-Mex), Pappamias (Italian),<br />
C&H Steak Company, Pappas Burger, Pappas Seafood House, Pappas Bar-B-Q, Pappas Pizza and Pappa Bros. Steak<br />
House. Top performers and primary growth vehicles include Pappadeaux and Pappasito's, which some industry analysts<br />
report have average unit volumes in the $7 million area.<br />
The concepts range in size and decor, but all are full service with most open for the lunch and dinner departs. Much of the<br />
food and condiments served in the restaurants are customized in-house. In addition, many of the decor elements and<br />
equipment, such as the chairs, prep tables, sinks, and wood-burning grills are designed by the company.<br />
PRM Investments is a family-held firm that is run by the second and third generations of the Pappas family, Peter, Harris and<br />
Christopher Pappas. The company was started in the early 1900's by H.D. Pappas.<br />
<strong>Menu</strong> Positioning |<br />
Pappadeaux—Cajun cuisine, specialties include Boudin sausage, fried alligator, oysters, gumbos, etouffees and charbroiled<br />
seafood. Pappasito's Cantina menus quesadillas, enchiladas, fajitas and other Tex-Mex fare.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
486
Personnel |<br />
Harry Pappas, Chief Operating Officer<br />
Pete Pappas, Chairman<br />
Christopher Pappas, Chief Executive Officer<br />
Leslie Diagna, Vice President of Operations<br />
Celeste Noble, <strong>Menu</strong> Development/R&D<br />
Michael Velardi, Chef<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
487
Pat & Oscar's<br />
Headquarters<br />
9823 Pacific Heights Blvd Suite J, San Diego, California 92121 USA<br />
Tel: (619) 552 4920 Fax: (619) 552 4930<br />
www.breadstick.com<br />
Ownership: Private<br />
Segment: Limited Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 40,000 38,000 -<br />
Company-owned ($000) 40,000 38,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 16 12 -<br />
Company-owned 16 12 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,657 2,800 -<br />
Concept Positioning |<br />
Pat & Oscar's marries traditional family classics with gourmet pizza in a unique dining experience. While the chain is similar to<br />
limited-service in that it provides food fast, the similarities end there. Initially, guests are greeted with a smile and a signature<br />
breadstick. They then proceed to a register to order food from a menu board and choose their own seats. Within 10 minutes,<br />
food is delivered to their tables by runners.<br />
Units, which average approximately 5,300 sq. ft. and seat about 225 patrons, are decorated in black, yellow and white colors.<br />
Black and white-checkered tablecloths add to the design as well. Outdoor patios are also featured at many units, and add<br />
another 500–2,00 sq. ft. the restaurant. Lunch and dinner account for 85% of sales, while 15% comes from catering and home<br />
delivery.<br />
The first unit was opened as Oscar’s by the Sarkisian family—Oscar and Pat, along with their son John, and daughter Tammy<br />
Celmo—in August 1991, in San Diego.<br />
In August 2000, Sizzler International Inc., eventually Worldwide Restaurant Concepts, completed its acquisition of the<br />
company and became majority owner. In April 2001, it changed the name of the concept to Pat & Oscar’s.<br />
<strong>Menu</strong> Positioning |<br />
Features ribs, chicken, pasta, gourmet pizzas which range from the Gyro Gourmet—made with muenster, mozzarella and feta<br />
cheese, gyro meat, red onions, tomatoes and a sesame seed crust—to the San Diego Gourmet—topped with muenster,<br />
mozzarella and feta cheese, avocados, red onions and pesto sauce, sandwiches, salads and desserts. Pizzas priced from<br />
$9.95–$13.95. Check Averages: $12 –$18<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
488
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Sizzler parent Worldwide Restaurant Concepts said that Pat & Oscar’s is its preferred growth vehicle, despite sagging sales at<br />
that 19-unit chain. It plans to explore franchising Pat & Oscar’s, which it acquired as an eight-unit chain in 2000. Operating in<br />
four Southern California counties and Phoenix, Pat & Oscar’s is a counter-service concept offering family-sized and smaller<br />
portions of ribs, chicken, pizza, pasta, salad and house-made bread sticks. In addition, the company plans to end a decadelong<br />
break in area-franchising of its Sizzler brand and is actively talking with groups about franchising. (NRN 3/17/03 p114 &<br />
3/31/03 p4)<br />
International Activities |<br />
Sizzler USA expanded its deal with an existing franchisee in Puerto Rico. The deal calls for Multisystems Restaurants Inc. to<br />
add five new Sizzlers in Puerto Rico over the next five years. Sizzler USA, with 317 units, is a division of Worldwide<br />
Restaurant Concepts’ system, which also includes 111 KFCs, primarily in Queensland, Australia, and 21 Pat & Oscar’s.<br />
(NDNF 9/26/03)<br />
Personnel |<br />
Pat & Oscar’s appointed John Wright chief executive officer. Previously, Wright was president of Bennigan’s and Wendy’s<br />
international division. (Restaurant Business Daily News 12/12/03)<br />
News & Other |<br />
Pat & Oscar’s is being investigated by San Diego County public health officials for serving lettuce contaminated with the E.<br />
Coli 0157:H7 bacteria. The investigation has widened to include two San Diego public school districts, one of which used the<br />
same lettuce packer as Pat & Oscar’s. The other district was under watch because a student there had become ill. Of the 20<br />
recently reported cases of E. Coli contamination (16 in San Diego County and four in Orange County), at least 19 appear to<br />
have been customers of Pat & Oscar’s. The 21-unit chain is owned by Sizzler parent Worldwide Restaurant Concepts.<br />
Separately, Robert Holden resigned as president of Pat & Oscar’s to run the 23-unit Elephant Bar casual-dining chain. (NDNF<br />
10/9/03 & 10/13/03; NRN 9/22/03 p10)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
489
Patina Restaurant<br />
Headquarters<br />
120 W. 45th Street, New York, New York 10036 USA<br />
Tel: (212) 789 8100 Fax: (212) 302 8032<br />
www.patinagroup.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 50,000 40,000 35,000<br />
Company-owned ($000) 50,000 40,000 35,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 21 14 11<br />
Company-owned 21 14 11<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,000 3,000 3,181<br />
Concept Positioning |<br />
The Patina Restaurant Group is the West Coast arm of Restaurant Associates and is perhaps best known for its flagship<br />
Patina. Its largest operational brand is Pinot Restaurants.<br />
The Pinot Restaurants all have different names that include the word Pinot— Pinot Bistro, Pinot Blanc, Cafe Pinot, Pinot<br />
Hollywood, Pinot Brasserie, Pinot Provence and Pinot Brasserie. All offer French bistro cuisine with a California twist but each<br />
has its own distinct menu as well as variations on several signature items. For example, a staple is the Plat du Jour and/or<br />
Bistro-Bistro-Bistro section, which lists steak, roast chicken and other standards. All are light, bright and casual. They typically<br />
seat between 150–180 people. Like the menus, though, each has its own defining characteristics. Cafe Pinot, Los Angeles,<br />
has a club atmosphere, a rotisserie, and a large patio. Pinot Hollywood, Los Angeles, has a large bar area and stays open<br />
later than others to accommodate the studio crowd. Pinot Provence, has two outdoor patios and three casually chic dining<br />
rooms that reflects its Provencal roots and is located in the Westin South Coast Plaza Hotel in Costa Mesa, CA.<br />
The 130-seat Nick & Stef’s, an upscale steakhouse concept, is based on a unique “dozens” approach. It debuted in Los<br />
Angeles in 1999 and is named after founder Joachim Spichal’s twin sons. While decor varies from unit to units, the dining<br />
rooms have a sleek/modern feel, open kitchen and glass-walled beef aging room. Units are open for lunch and dinner. In<br />
2001, Nation's Restaurant News named it one of the "Hot Concepts" of the year.<br />
Pinot Restaurants was created by Chef Joachim Splichal and his wife, Christine with the 1992 opening of Pinot Bistro in Studio<br />
City, CA. The Spilchals had previously entered the restaurant scene in 1989 with the opening of their acclaimed Patina. In late<br />
1999, the company, Patina Group LLC, was acquired by Compass Group PLC in a deal estimated to be in the $25+ million<br />
area. It will function as the West Coast arm of Compass Group’s Restaurant Associates operation, with Splichal reporting to<br />
RA’s chief executive Nick Valenti.<br />
The Patina Group also owns and operates Patinette at Los Angeles' Museum of Contemporary Art, Patina Catering, Pentolino,<br />
a fast-casual Italian operation. In years past, Gourmet has rated Pinot Bistro as one of its Top 10 best restaurants in Los<br />
Angeles.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
490
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items include popular bistro meats such as veal, lamb and duck. Also offers cold and warm appetizers, salads,<br />
soups, various pasta, gnocchi and risotto dishes as well as chicken, fish and steak entrees. Check Averages: around $35. Nick<br />
& Stef’s: Unique “dozens” feature creates wider menu base than in most steakhouses and includes 12 different choices in<br />
each category of steak, chop or grill offerings; vegetables; potatoes; sides; and sauces. <strong>Menu</strong> Prices: $19–$32. Check<br />
Averages: $30–$65.<br />
Personnel |<br />
Paul Potvin, Chief Financial Officer<br />
Joachim Splichal, Chairman<br />
Julie Priceman, Director of Marketing<br />
Bill Matthews, Vice President of Operations<br />
Alexandra Mack, Director of Purchasing<br />
Restaurant Associates/Patina named Richard Stockinger president. The company also promoted Paul Potvin to chief financial<br />
officer, filling Stockinger's previous position. (NRN Daily NewsFax 12/10/03)<br />
Restaurant Associates/Patina hired Dan Searby as vice president of marketing. Perviously, Searby was director of national<br />
accounts for Coca-Cola. (NRN Daily NewsFax 12/10/03)<br />
News & Other |<br />
The Patina Group in Los Angeles recently dropped corkage fees at its six Pinot restaurants in California and Nevada. It hopes<br />
that the move will boost traffic, especially during the week. (R&I 6/1/03 p22)<br />
Patina Group is readying three projects at the Music Center in downtown Los Angeles. The center encompasses the Dorothy<br />
Chandler Pavilion, Ahmanson Theatre, Mark Taper Forum and the Frank Gehry-designed Walt Disney Concert Hall. The latter<br />
was slated to open in October. At the Chandler Pavilion, Patina will install Kendall Brasserie to replace Otto’s restaurant and it<br />
is building a foodservice facility in the fifth-floor ballroom. Patina will handle the restaurants at the Disney hall and plans to<br />
move its own flagship Patina fine-dining to the Disney Hall from its longtime Melrose Ave. site. In addition, Patina was<br />
preparing for an early October opening of its new multiconcept venture called C2 Café and Kitchen in the twin Century Towers<br />
office complex adjacent to the old ABC Entertainment Center site. The new eateries will offer both quick-service and fullservice<br />
as well as counterservice Asian and Mexican components. (NRN 9/22/03 p5; NDNF 9/26/03)<br />
ABC Carpet & Home in New York City is the home of Lucy, a new restaurant opened by Phil Suarez and his Patria executive<br />
chef Andrew DiCataldo. The 160-seat eatery, which serves Oaxacan-inspired cuisine, occupies the space that formerly<br />
housed Chicama. The house specialty is Barbacoa. (FA 11/03 p18)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
491
Pei Wei Asian Diner<br />
Headquarters<br />
15210 N. Scottsdale Rd Suite 300, Scottsdale, Arizona 85254 USA<br />
Tel: (602) 957 8986 Fax: (480) 367 9097<br />
www.peiwei.com<br />
Ownership: Private<br />
Segment: Limited Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 21,901 5,910 -<br />
Company-owned ($000) 21,901 5,910 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 16 5 -<br />
Company-owned 16 5 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,175 2,350 -<br />
Concept Positioning |<br />
The more casual concept in the P.F. Chang’s China Bistro family, Pei Wei features fresh Asian cuisine. Counter service and<br />
take-out are both available. The company has embarked on an aggressive expansion plan for both concepts, and 13–15 new<br />
Pei Wei sites are expected to open in 2003. The corporate base is in Arizona, and restaurants are now open there, in<br />
California, Texas and Colorado.<br />
<strong>Menu</strong> Positioning |<br />
Entrees are modestly priced between $6.25 and $9, and most entrée items on the menu are labeled spicy, as befits a format<br />
that includes Mandarin, Korean, Vietnamese and Asian styles of cooking. Beef, broccoli and chicken are cooked in rice and<br />
noodles, offering a variety of choices.<br />
Expansion Plans |<br />
Pei Wei Asian Diner, operated by P.F. Chang’s China Bistro, currently has 21 units in Arizona, California, Colorado and Texas.<br />
With dedicated takeout entrances and cash registers, units do about 40% of sales in takeout. The concept has entered two<br />
new markets this year, opening in Denver and Houston, and plans to debut in Las Vegas later this year. Its greatest<br />
concentration of units is in the Phoenix-Scottsdale area, where it has 10. Pei Weis are being opened only in markets with<br />
P.F.Chang’s locations. The company believes that there will be between three and five Pei Weis for every P.F. Chang’s in a<br />
market. In Phoenix, it now has five bistros and 10 Pei Weis. Units range in size from 2,600 sq.ft.–3,800 sq.ft. and include new<br />
construction as well as refurbished spaces. (Nation’s Restaurant News; Restaurants and Institutions)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
492
<strong>RISE</strong> COMPANY PROFILE<br />
P.F. Chang’s China Bistro plans to open 16 China Bistro restaurants and 22 Pei Wei Asian Diners in 2004.<br />
(RestaurantBiz.com 10/3/03)<br />
Personnel |<br />
Russel Owens, President<br />
News & Other |<br />
Nation’s Restaurant News (NRN) recently announced the winners of its 2003 Hot Concepts! Awards. Having profiled each of<br />
the concepts soon after they hit the ground running, <strong>Technomic</strong> Information Services agrees with NRN’s choices and,<br />
naturally, we can’t help but examine what they teach us about the emerging chain business. The NRN 2003 Hot Concepts!<br />
are: • Fogo de Chao—four units; an all-you-can-eat Brazilian casual dining chain • Grand Lux Café—three units; an offshoot of<br />
The Cheesecake Factory featuring global cuisine • Pei Wei Asian Diner—21 units; P.F. Chang’s quick-casual pan-Asian<br />
concept • Raising Cane’s Chicken Fingers—12 units; a limited-service chain with a basic menu of chicken fingers • Smokey<br />
Bones BBQ—34 units; Darden Restaurants’ barbecue concept that has a sports bar theme • Ted’s Montana Grill—eight units;<br />
media mogul Ted Turner’s bar and grill concept featuring bison • Arby’s—3,300 units; while not an emerging concept, NRN<br />
recognizes how the chain has reinvented itself by developing its Market Fresh line of deli-style sandwiches and, more recently,<br />
a new prototype, cooking system and humorous ad campaign. At first glance, it is difficult to see one quality that these<br />
concepts share. But they each have successfully filled a niche in the chain restaurant industry, and they developed a clear<br />
identity backed by likable food. Whether a barbecue restaurant that offers sports-bar amenities or a bar and grill serving bison,<br />
these chains have been leaders in some way. For example, Pei Wei Asian Diner along with, of course, Pick Up Stix (78 units)<br />
have been forerunners in the promising quick-casual Asian category, and several chains are following, like Yan Can. In<br />
claiming a niche, emerging concepts always face and put forth challenges, such as convincing the public to try bison or a<br />
Brazilian buffet or to become regulars at a restaurant that stakes its entire business on one item, the chicken finger. Boston<br />
Market, often credited as one of the first quick-casual concepts, put forth a challenge to diners last month with its new concept<br />
Rotisserie Grill (profiled in this issue). The concept is elevating quick-casual’s image by serving diners’ meals on real china,<br />
upgrading decor and offering table service for desserts and alcoholic beverages. Yet it maintains quick-casual’s prices and<br />
general counter service. Will diners bite? The above-mentioned chains took risks and took the lead. With careful trend<br />
research, a quality product, and strong leadership, the gamble rarely seems as great as the final rewards.<br />
P.F. Chang’s China Bistro founder Paul Fleming is working on a new brand offering Chinese food. Fleming approached P.F.<br />
Chang’s about investing in the venture, according to chief executive Rick Federico. Federico said Chang’s declined, deeming<br />
the new brand to be redundant. He said Fleming’s concept will have a $13 check average, falling between Pei Wei Asian Diner<br />
and P.F. Chang’s. A spokesman for Fleming had no comment on Federico’s statements and would not release the name of<br />
the new brand. (RB 5/15/03 p14)<br />
Paul Lee’s Chinese Kitchen is the name of the new restaurant concept being developed by Paul Fleming, according to<br />
sources. Fleming developed the P.F. Chang’s China Bistro, Pei Wei, Fleming’s Prime Steakhouse & Wine Bar and Z’Tejas<br />
chain concepts. His new full-service concept reportedly was designed to generate average checks between the $17.50 at P.F.<br />
Chang’s and the $8.50 at its fast-casual sibling, Pei Wei. He is said to have leased sites for Paul Lee’s Chinese Kitchens in<br />
Arizona and California. Fleming previously took P.F. Chang’s public and entered into a joint-venture deal with Outback<br />
Steakhouse Inc. to expand Fleming’s Prime. In 2001 he said he was stepping away from restaurant operations to assume the<br />
chairmanship of Americans for Community and Faith-Centered Enterprise. (NRN 7/28/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
493
Pepperoni Grill/Others<br />
Headquarters<br />
1220 S. Sante Fe, Edmond, Oklahoma 73003 USA<br />
Tel: (405) 705 5000 Fax: (405) 705 5001<br />
www.eats-inc.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 3,600 3,654 3,774<br />
Company-owned ($000) 3,600 3,654 3,774<br />
Franchised ($000) - - -<br />
U.S. Number of Units 2 2 2<br />
Company-owned 2 2 2<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,800 1,827 1,886<br />
Concept Positioning |<br />
Pepperoni Grill is a casual dining concept that features a variety of Northern Italian entrees with special emphasis on brickoven<br />
baked pizza. The warm European bistro atmosphere is accented with an exhibition kitchen, light woods and booths<br />
covered in tapestry. All menu items are prepared on the premises with the entire entree presentation being performed within<br />
view of the guest, making the kitchen part of the restaurant's atmosphere. An in-store bakery makes all the breads and daily<br />
desserts. And over 60 different wine selections are offered, 25 of which are available by the glass.<br />
Pepperoni Grill is the latest acquisition of parent Eateries, Inc., parent company and operator of Garcia's Mexican Restaurants<br />
and Garfield's Restaurant & Pub.<br />
The original unit, located in Oklahoma City, was a 1995 acquisition. The second unit is in nearby Edmund, OK, and opened in<br />
1996. The company currently does not plan on expanding the brand.<br />
<strong>Menu</strong> Positioning |<br />
The menu features a variety of pastas and pizzas prepared in brick ovens in the Northern Italian style. The restaurant features<br />
a fresh-daily approach to cooking, using fresh breads, sauces and desserts created daily. A complete variety of Italian wines<br />
are also available.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
494
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Eateries Inc. will go private by terminating the registration of its securities. The company noted in a written statement that its<br />
decision to go private was “based on the progressively higher costs and lack of associated benefits small public companies<br />
face in light of the recent changes imposed under the new Sarbanes-Oxley regulations.” The company’s common stock closed<br />
at $3.40 on the OTC Bulletin Board on November 19. Eateries owns, operates, franchises and licenses 61 restaurants in 21<br />
states. Its chains are Garfield’s Restaurant and Pub, Garcia’s Mexican Restaurants and Pepperoni Grill. (NRN 12/1/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
495
Perkins Restaurants & Bakery<br />
Headquarters<br />
6075 Poplar Ave., Memphis, Tennessee 38119-4709 USA<br />
Tel: (901) 766 6400 Fax: (901) 766 6482<br />
www.perkinsrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 819,039 797,256 797,120<br />
Company-owned ($000) 281,323 285,000 280,499<br />
Franchised ($000) 537,716 512,256 516,621<br />
U.S. Number of Units 499 482 475<br />
Company-owned 155 153 145<br />
Franchised 344 329 330<br />
International Sales ($000) 20,683 23,000 22,684<br />
International Units 14 15 15<br />
Average Sales/Unit ($000) 1,643 1,910 1,934<br />
Concept Positioning |<br />
Perkins Restaurants & Bakery is a full-service, family-oriented chain. Most locations are open 24 hours; lunch is its leading day<br />
part. Units vary in size and average 176 seats. A new prototype offers flexible development alternatives for both traditional and<br />
nontraditional sites with seating for 130–217 guests.<br />
Decor varies from restaurant to restaurant. Brightly tiled bakeries fits into lobbies of existing and new units. A wood and brassframed<br />
bakery display case, located next to the cashier, creates visual appeal. The company also has a stand-alone bakery<br />
prototype available for nontraditional location development.<br />
The business began in 1957 as a breakfast house named Smitty after founder, William Smith. Smith's first franchisees, Matt<br />
and Ivan Perkins, developed franchises under their own name. In the late 70's the operations merged and the names were<br />
unified. In October 1986, Perkins Family Restaurants, L.P. succeeded to the franchise and restaurant operations of Perkins<br />
Restaurants, Inc., of which a master limited partnership was 50% owned by the public and 50% by The Restaurant Co., a<br />
private firm whose principal shareholder is Donald N. Smith. Smith also owns a significant share of Friendly Ice Cream Corp.<br />
In August 1997, The Restaurant Co. offered to purchase the remaining partnership shares. The $77 million deal closed later<br />
that year and took the company private.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: breakfast dishes. Features homestyle soups, salads, omelets, beef, fish and chicken, sandwich platters,<br />
including complete line of melts; around 140 items on menu, On-premise bakeries produce pastries, muffins, cookies, cakes<br />
and pies; 7-10% of sales. <strong>Menu</strong> Prices: $3.99–$9.49. Check Averages: $6.51.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
496
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Perkins is running a Mix ‘n Match promotion that allows guests to choose one of its new sandwiches on freshly baked Asiago<br />
Focaccia along with two accompaniments. Options are a cup of soup, cole slaw, a half-order of french fries or a garden salad<br />
cup. A miniature Hershey’s Brownie is also included in this lunch offering. Sandwich choices include: ■ Crispy Chicken<br />
Parmesan—crunchy-crusted all-white chicken tenders with marinara sauce and Provolone and Parmesan cheeses ■ Black<br />
Angus Beef & Portobello Mushroom—Black Angus roast beef and Portobello mushrooms grilled and topped with sautéed<br />
onions, American cheese and Dijon mustard; served with au jus for dipping ■ Honey Ham ‘n Turkey—Butterball turkey breast<br />
and sliced honey ham with bacon, Swiss cheese, lettuce, tomato, red onions and honey mustard dressing ■ Honey Crunch<br />
Chicken—crunchy crusted all-white chicken tenders with bacon, lettuce, tomato, red onions and honey mustard dressing ■<br />
Rancher’s BLT—bacon, Swiss cheese, lettuce, tomato and red onions with ranch dressing. (Company Web Site)<br />
Comfort foods are being updated with more unique ingredients as midscale operators work to update their menus and make<br />
them more appealing. While traditional foods are still the norm, there has been increasing movement toward upgraded and<br />
fresher ingredients, bold flavor and even ethnic influences. Examples include: ■ Caribbean Chicken Salad—teriyaki-glazed<br />
chicken breast, red peppers, Mandarin oranges, red and green onions, shredded carrot and tortilla straws served over spinach<br />
with Mandarin-orange dressing, Perkins ■ Slow-Roasted Turkey Focaccia—turkey breast, Swiss cheese, lettuce, tomatoes,<br />
cucumbers and creamy Caesar dressing, Bakers Square ■ Mango-Habanero Grilled Chicken Breasts—two chicken breasts<br />
with tangy mango-chile sauce and fresh pineapple, King’s Family Restaurants ■ Slim Jim—ham, Swiss cheese, lettuce,<br />
tomatoes and special sauce on grilled Grecian bread, Big Boy ■ California Omelet—eggs, Cheddar cheese, tomatoes, olives<br />
and crumbled bacon topped with sour cream and avocado wedges, Carrows. (Restaurants & Institutions, 8/1/03, p13)<br />
Perkins touted six new dinners in a Heartland Value Dinners promotion celebrating comfort food. Each was served with a<br />
warm roll, choice of two sides and a slice of pie or Hershey’s Fudge Brownie Supreme. Offerings included: ■ Portobello Pot<br />
Roast—pot roast mounded with grilled portobello mushrooms, seared onions, red and green peppers and topped with gravy ■<br />
Goldrush Chicken—Cajun-spiced grilled chicken breast topped with fresh steamed broccoli, grilled diced ham and cheesy<br />
Alfredo sauce and served over seasoned herb rice ■ Mushroom ‘N Swiss Chicken—boneless, skinless chicken breast, grilled<br />
and topped with sautéed fresh portobello and button mushrooms and melted Swiss cheese; served over herb rice ■ Angela’s<br />
Homemade Meatloaf—two thick slices of homemade meatloaf served with rich mushroom gravy ■ Salisbury Steak—seasoned<br />
USDA ground chuck, grilled and smothered with sautéed onion gravy ■ Grouper Almondine—a tender, flaky fillet grilled with<br />
lemon butter and garnished with toasted almonds and chopped parsley. (Company Web Site 10/29/03)<br />
Personnel |<br />
John Rowan, Director of Purchasing<br />
Donald Smith, Chairman<br />
Don McComas, President<br />
Michael Donahoe, Chief Financial Officer<br />
Michael Kelly, Senior Vice President of Marketing<br />
Clyde Harrington, Vice President of Operations<br />
John Jones, Vice President of Operations<br />
Bobbie Mellard, Director of Purchasing<br />
Karen Craig, Director of Marketing<br />
Howard Thornburg, Director of Purchasing<br />
Vince Tyler, <strong>Menu</strong> Development/R&D<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
497
Peter Piper Pizza<br />
Headquarters<br />
14635 N. Kierland Suite 160, Scottsdale, Arizona 85254 USA<br />
Tel: (480) 609 6400 Fax: (480) 609 6521<br />
www.peterpiperpizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 125,800 135,000 139,000<br />
Company-owned ($000) 42,500 46,000 51,000<br />
Franchised ($000) 83,300 89,000 88,000<br />
U.S. Number of Units 113 122 128<br />
Company-owned 43 46 44<br />
Franchised 70 76 84<br />
International Sales ($000) 20,000 17,000 16,000<br />
International Units 21 18 17<br />
Average Sales/Unit ($000) 1,113 1,106 1,159<br />
Concept Positioning |<br />
Peter Piper Pizza owns, operates and franchises others to operate self-service, family-oriented Peter Piper Pizza restaurants.<br />
The majority (80%) of the chain's business is generated during the dinner period. Takeout orders account for 40% of sales.<br />
Dough is prepared fresh daily at each unit; 100% mozzarella cheese is used, and its toppings are fresh and sliced on-premise.<br />
Designed to offer families a fun-oriented environment, most units are located in-line with other stores and seat approximately<br />
300 patrons; size ranges from 8,500–15,000 sq. ft. Brightly-colored units contain 30–50 video and redemption games.<br />
Anthony M. Cavolo and his son-in-law, Stephan Herrgesell, opened the first Peter Piper Pizza restaurant in 1973 in Glendale,<br />
AZ, a suburb of Phoenix. In 1992, the company was acquired by Venture West Group. In the summer of 1995, Peter Piper<br />
acquired 30-unit Pistol Pete’s Pizza, Phoenix. The company is currently seeking to expand, thanks, in large part, to an $18<br />
million revolving line of credit extended to the company.<br />
<strong>Menu</strong> Positioning |<br />
Offers standard varieties of thin-crust and pan pizzas, salad, soft drinks and beer. Toppings vary from one region to. another;<br />
jalapeno peppers are popular in AZ, while ham and pineapple are a popular combination in Salt Lake City. <strong>Menu</strong> Prices: $3.59<br />
and up. Check Averages: $13.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
498
Personnel |<br />
Neil Simon, Chief Executive Officer<br />
Frank Sbordone, President<br />
Timothy Flynn, Chief Financial Officer<br />
Bruce Pauzus, Director of Purchasing<br />
Laurie Kapapski, Vice President of Marketing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
499
Piccadilly Circus Pizza<br />
Headquarters<br />
1009 Okoboji Ave., Milford, Iowa 51351 USA<br />
Tel: (712) 338 2771 Fax: (712) 338 2263<br />
www.pcpizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 160,000 167,000 151,000<br />
Company-owned ($000) - - 300<br />
Franchised ($000) 160,000 167,000 150,700<br />
U.S. Number of Units 790 800 750<br />
Company-owned - - -<br />
Franchised 790 800 750<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 215 225 2,147,483,647<br />
Concept Positioning |<br />
Piccadilly Circus Pizza is a quick-service pizza chain that operates solely in convenience store locations. As such, a small<br />
work station, ranging from 10–16 sq. ft., is the only space required to operate. Each area includes a proofing cabinet,<br />
convection oven, prep table, holding/merchandise table and a freezer, if necessary. A majority of its units offer only pizza<br />
products, however, many are adding a submarine sandwich program to their operations. Products are delivered from one of 15<br />
distribution centers nationwide.<br />
The company offers licensing arrangements in lieu of a franchising program because it believes the latter details its customer’s<br />
specific sites and territories. No royalty fees nor advertising assessments are charged to its licensees. In its fiscal 1998, the<br />
company anticipates adding another 200–300 licensed locations.<br />
In 1977, Howard Hustedt and R.C. Swanson opened the first Piccadilly Circus Pizza unit with dreams of creating a successful<br />
stand-alone restaurant chain. However, in 1981, Rod Simonson, its current president, purchased the company and began to<br />
develop the concept for convenience stores.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Pizza; most popular—Grab ‘n’ Go mini pizza. Also menus submarine sandwiches, breakfast items, such as<br />
sandwiches and rolls, and bakery items.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
500
Personnel |<br />
Rod Simonson, Chief Executive Officer<br />
Randy Johnson, Chief Financial Officer<br />
Jason Farrell, Vice President of Operations<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
501
Pick Up Stix<br />
Headquarters<br />
1044 Calle Recodo, San Clemente, California 92673 USA<br />
Tel: (949) 366 8747 Fax: (949) 450 5400<br />
www.pickupstix.com<br />
Ownership: Private<br />
Segment: Limited Service Asian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 67,000 52,000 49,000<br />
Company-owned ($000) 62,000 50,000 49,000<br />
Franchised ($000) 5,000 2,000 -<br />
U.S. Number of Units 75 58 52<br />
Company-owned 70 54 52<br />
Franchised 5 4 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,050 1,000 942<br />
Concept Positioning |<br />
Pick Up Stix is a limited-service Chinese bistro that features healthy Asian cooking with American-style service. Appealing to<br />
people in a hurry, dishes are quickly made with quality and health in mind. In fact, about 20 items including all of its salads and<br />
soups as well as a few of appetizers carry a symbol—chop sticks holding a heart—to connote its healthy positioning. Also<br />
when for those items, meats are trimmed of fat and cooked in a lighter fashion, with fewer oils than traditional Chinese dishes.<br />
Units, which measure 1,400–2,500 sq. ft. and seat 20–60 guests, feature a high-tech design complete with neon lights, an<br />
exhibition kitchen made with stainless steel and a Pick-Up-Sticks game hanging from the ceiling.<br />
Approximately 70 of its business is takeout and 30% is casual dine-in.<br />
Charles Zhang and Bill Beckett established Pick Up Stix in 1989 with a full-service restaurant called Stix in Laguna Niguel, CA,<br />
of which there are currently two units. Soon thereafter, the company opened its first Pick Up Stix. In addition to its restaurants,<br />
the company also has a 33,000 sq. ft. compound—of which 7,000 sq. ft. is a processing plant under USDA inspection—in San<br />
Clemente, CA. It also runs a supply company that provides everything except equipment and owns a construction company<br />
that builds its units.<br />
Carlson Restaurants Worldwide, parent company of T.G.I. Fridays, acquired Pick Up Stix in June 2001.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: 5 varieties noodle dishes—shrimp, chicken, beef, vegetable and a mixture of the three proteins with green<br />
and white onions, bean sprouts, carrots and celery. Also offers 6 six fried rice choices. Separate lunch menu offered until 3<br />
p.m. that features smaller portions and lower prices. <strong>Menu</strong> Prices: $5–$9. Check Averages $8.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
502
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Traditional Chinese food has been adapted to correspond with American tastes at Pick-Up Stix. The Carlson Restaurantsowned<br />
chain retooled its menu by reducing oils and adding wine, vinegar and soy sauce as the base of many of its stir-fry<br />
offerings. (Nation’s Restaurant News)<br />
Pick Up Stix is serving Asian Lettuce Wraps for a limited-time. The $5.99 entrée features Iceberg lettuce leaves with minced<br />
white-meat chicken, vegetables and hoisin sauce. (NRN Daily NewsFax, 8/22/03)<br />
Pick Up Stix launched a limited-time “Asian Lettuce Wraps” promotion. The $5.99 entrée has iceberg lettuce leaves with whitemeat<br />
chicken, vegetables and hoisin sauce. (Nation’s Restaurant News 09/08/03 p78)<br />
Technology |<br />
Pick Up Stix named John Allegretto vice president of supply chain management. Recently, Allegretto served as food and<br />
beverage category director for Walt Disney Co.'s strategic sourcing group. (NRN Daily NewsFax 7/23/03)<br />
Personnel |<br />
Steve King, Chief Financial Officer<br />
Timothy Pulido, Chief Operating Officer<br />
Charles Zhang, Chief Executive Officer<br />
Bruce Rajai, Director of Purchasing<br />
Lisa Martin, Vice President of Operations<br />
Richard Alessandro, Vice President of Purchasing<br />
Pick Up Stix named Kevin Reilly director of development. Previously, Reilly was vice president of real estate for Panda<br />
Restaurant Group. (NRN Daily NewsFax 10/17/03)<br />
Pick Up Stix promoted Jason O’Brien to regional manager of operations, Chris Knuckey to area supervisor of Las Vegas and<br />
Jason Sheehan to area supervisor for Chicago. The chain also appointed Sue Sadlier to director of development. (Franchise<br />
Times 9/03 p52)<br />
News & Other |<br />
Pick Up Stix has opened 29 new outlets since it was acquired a year and a half ago by Carlson Restaurants Worldwide and<br />
now operates a total of 75 restaurants. Just five of the units are franchised. Since the acquisition, Carlson has signed four<br />
more franchise groups to open Pick Up Stix units. The two most recent development deals were for California. Deals were<br />
signed with Navab Inc. of Redlands, CA, for six restaurants in Palm Springs, Palm Desert, Redlands, San Bernardino and<br />
Barstow, CA, and with Rob-Con Development for six units in Fresno, Visalia and Bakersfield in California’s Central Valley.<br />
(Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
503
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Nation’s Restaurant News (NRN) recently announced the winners of its 2003 Hot Concepts! Awards. Having profiled each of<br />
the concepts soon after they hit the ground running, <strong>Technomic</strong> Information Services agrees with NRN’s choices and,<br />
naturally, we can’t help but examine what they teach us about the emerging chain business. The NRN 2003 Hot Concepts!<br />
are: • Fogo de Chao—four units; an all-you-can-eat Brazilian casual dining chain • Grand Lux Café—three units; an offshoot of<br />
The Cheesecake Factory featuring global cuisine • Pei Wei Asian Diner—21 units; P.F. Chang’s quick-casual pan-Asian<br />
concept • Raising Cane’s Chicken Fingers—12 units; a limited-service chain with a basic menu of chicken fingers • Smokey<br />
Bones BBQ—34 units; Darden Restaurants’ barbecue concept that has a sports bar theme • Ted’s Montana Grill—eight units;<br />
media mogul Ted Turner’s bar and grill concept featuring bison • Arby’s—3,300 units; while not an emerging concept, NRN<br />
recognizes how the chain has reinvented itself by developing its Market Fresh line of deli-style sandwiches and, more recently,<br />
a new prototype, cooking system and humorous ad campaign. At first glance, it is difficult to see one quality that these<br />
concepts share. But they each have successfully filled a niche in the chain restaurant industry, and they developed a clear<br />
identity backed by likable food. Whether a barbecue restaurant that offers sports-bar amenities or a bar and grill serving bison,<br />
these chains have been leaders in some way. For example, Pei Wei Asian Diner along with, of course, Pick Up Stix (78 units)<br />
have been forerunners in the promising quick-casual Asian category, and several chains are following, like Yan Can. In<br />
claiming a niche, emerging concepts always face and put forth challenges, such as convincing the public to try bison or a<br />
Brazilian buffet or to become regulars at a restaurant that stakes its entire business on one item, the chicken finger. Boston<br />
Market, often credited as one of the first quick-casual concepts, put forth a challenge to diners last month with its new concept<br />
Rotisserie Grill (profiled in this issue). The concept is elevating quick-casual’s image by serving diners’ meals on real china,<br />
upgrading decor and offering table service for desserts and alcoholic beverages. Yet it maintains quick-casual’s prices and<br />
general counter service. Will diners bite? The above-mentioned chains took risks and took the lead. With careful trend<br />
research, a quality product, and strong leadership, the gamble rarely seems as great as the final rewards.<br />
Pick Up Stix will grow by 25 units this year, with the Carlson Restaurants Worldwide-owned concept’s openings to be<br />
“predominantly” company-operated. The Pick Up Stix system currently consists of 83 stores, of which 75 are company-owned.<br />
Growth of the quick-casual Asian concept will be enhanced in part with increased franchising efforts. (NRN 5/26/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
504
Pizza Hut<br />
Headquarters<br />
14841 Dallas Pkwy., Dallas, Texas 75254 USA<br />
Tel: (972) 338 7700 Fax: (972) 338 6869<br />
www.pizzahut.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 5,105,000 5,000,000 5,000,000<br />
Company-owned ($000) 1,505,000 1,500,000 1,500,000<br />
Franchised ($000) 3,600,000 3,500,000 3,500,000<br />
U.S. Number of Units 7,599 7,719 7,927<br />
Company-owned 1,760 1,745 1,801<br />
Franchised 5,839 5,974 6,126<br />
International Sales ($000) 2,700,000 2,600,000 2,600,000<br />
International Units 4,431 4,272 4,157<br />
Average Sales/Unit ($000) 740 724 832<br />
Concept Positioning |<br />
Pizza Hut is the largest pizza chain in the world. Pizza Hut operates, develops, and franchises full-service restaurants, food<br />
court express, kiosks, and home delivery units. Pan pizza accounts for 60% of pizza product sales. Personal Pan Pizza, a 6 in.<br />
version served from 11:00 a.m. to 4:00 p.m., offers a choice of one to five toppings and from 11:00 a.m. to 1:30 p.m. is<br />
guaranteed ready within five minutes or the next one is free.<br />
Most units are freestanding, with 1,500–2,500 sq. ft. and seating for 75–125 patrons. Exteriors are largely brick and have the<br />
chain's signature "red roof." Front and back of the house includes a conveyorized oven, new equipment to proof and hold<br />
pizza dough, and four interior decor options. Expansion plans call for the development of co- and multibranded sites with other<br />
YUM! concepts, leading to more versatile units in design and décor.<br />
Pizza Hut was founded in Wichita, KS, in 1958 by Frank and Dan Carney and their partner, John Bender. In 1959 the firm<br />
incorporated and established its first franchise in Topeka. The chain went public in 1969 and was acquired by PepsiCo in<br />
1977. In early 1997, PepsiCo announced its intent to spin-off its restaurant holdings into a separate public company. The spinoff<br />
was completed in October 1997 and the chain’s parent was Tricon Global Restaurants, Inc, renamed YUM! Brands, Inc. in<br />
May 2002.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: thin, pan and hand-tossed pizza served with 12 basic toppings ranging from cheese, pepperoni (the best<br />
seller) to onion and bacon bits; some additional toppings such as jalapeno peppers used to meet regional tastes. Specialty<br />
pizzas include Personal Pan Pizza—6-in. pie with choice of toppings and Big Topper—7-in. version; The Big New Yorker, a<br />
16-in., 8-slice pie; Chicago-style Pizza, Pan Pizza, Thin 'n Crispy, Pizzeria Stuffed Crust, Hand Tossed, Sicilian and The<br />
Insider. Also menus breadsticks, pasta, salads and sandwiches. Beer and wine served in some markets.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
505
Promotion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Pizza Hut plans to debut its inaugural consumer loyalty program, also dubbed VIP which stands for “Very Into Pizza,” at<br />
corporate locations in 23 markets for $14.99 a year. Upon signup, consumers receive a free large pizza. Then for every two<br />
carry out or delivery orders, consumers will receive a free large pizza coupon (up to two pizzas per month). Also participants<br />
will get one order of free breadsticks or baked cinnamon sticks monthly for participation in the program. Depending on the<br />
response, franchisees will likely be invited to join the program in 2004. (Brandweek 9/29/03 p9)<br />
<strong>Menu</strong> Development |<br />
Pizza Hut rolled out Baked Cinnamon Sticks. The item is promoted as featuring “cinnamon and sugar baked into each bite”<br />
and comes with a cup of icing for dipping sauce. A regular 10-stick order is priced at $2.99 and a family order with 20 sticks is<br />
$5.99. (Restaurant Business Daily News)<br />
Pizza Hut has made the P’Zone a permanent menu item. Originally launched last year as a limited-time offer, the P’zone<br />
features a 12-inch pizza crust filled with toppings and cheese, then folded and sealed calzone-style. Varieties are Pepperoni<br />
Lover’s, Meat Lover’s and Classic (filled with Italian sausage, green peppers and onions). Each is served with a side of<br />
marinara sauce. (PRNewswire-FirstCall)<br />
Pizza Hut is reportedly developing several healthier offerings for testing this fall. According to an analyst report, experiments<br />
include prepackaged salads and reduced-fat pizza made from lower-fat pepperoni and lower-fat cheese. (Nation’s Restaurant<br />
News 9/8/03 p6)<br />
Pizza Hut introduced a Honey BBQ Chicken P’Zone as a limited-time offer through November 22. The 12-in. calzone features<br />
chicken in a sweet and tangy barbecue sauce with mozzarella cheese, wrapped in dough. It is being offered for $5.99<br />
individually or $2.99 with the purchase of a large pizza. (NRN Daily NewsFax 10/29/03)<br />
Pizza Hut launched a new line of six lower-fat Fit ‘N Delicious Pizzas. Each is built on the same crust as the chain’s Thin ‘N<br />
Crispy line but is topped with half the typical amount of cheese and leaner toppings than pepperoni or sausage. A Fit ‘N<br />
Delicious slice has 3.5–5 grams of fat depending on toppings, which is 25% less than a regular recipe thin-crust slice. Varieties<br />
include: Diced Chicken, Red Onion & Green Pepper; Ham, Pineapple & Tomato; and Green Pepper, Red Onion & Tomato.<br />
Customers can also create their own combinations. Prices are the same as for the Thin ‘N Crispy line. The target market for<br />
the Fit ‘N Delicious line is women ages 29–54. The chain is also introducing family-style Fresh Express bagged salad kits in its<br />
Orlando, Las Vegas, Minneapolis and Salt Lake City markets. Priced at $2.99, the kits are designed to serve four people and<br />
include romaine and iceberg lettuces, cabbage and carrots with a choice of regular or fat-free ranch dressing. The kits will be<br />
rolled out systemwide in stages. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 10/22/03, USA Today 10/14/03)<br />
Pizza Hut is testing a bistro menu at 20 restaurants nationwide. It features new pastas, including Italian Sausage Penne and<br />
Chicken Pomodoro; personal-sized pizzas, including a buffalo chicken option; and toasted sandwiches. (NRN Daily NewsFax<br />
11/18/03)<br />
Franchise Activity |<br />
Pizza Hut parent Yum! Brands agreed to acquire the 89 Pizza Hut units in Michigan owned by LaVan Hawkins’ Wolverine<br />
Pizza LLC. The price was undisclosed. Hawkins had owned 23 Burger Kings in five urban areas until he sold those units back<br />
to Burger King Corp. in January 2001 following lawsuits filed by both entities. (NRN 3/31/03 p64)<br />
International Activities |<br />
Pizza Hut restaurants in Canada recently introduced “Cinnaparts.” The cinnamon dessert item is similar to those recently<br />
introduced at U.S. units of Domino’s and Papa John’s. (NRN 2/24/03 p4)<br />
Taco Bell opened its first outlet in China in Shanghai. It features tableservice rather than the usual counter format. Parent<br />
Yum! Brands said it will monitor the unit’s performance to determine its expansion plans for the chain. Taco Bell’s sister chains<br />
KFC and Pizza Hut already have a total of about 8,100 outlets in China. (NRN 6/2/03 p56; FIR 5/26/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
506
<strong>RISE</strong> COMPANY PROFILE<br />
Priszm Brandz said that its 250 Pizza Hut outlets across Canada would buy only 100% Canadian beef to help support the<br />
country’s ailing beef industry. Its Pizza Hut restaurants buy approximately 3 million pounds of beef products annually. Priszm<br />
franchises more than 760 KFC, Taco Bell, Long John Silver’s and Pizza Hut outlets. In making the 100% Canadian beef<br />
pledge, at least temporarily, it is following the lead of the Canadian arms of McDonald’s and Dairy Queen. (NRN 8/25/03 p56)<br />
Technology |<br />
Americans are expected to buy $45 billion worth of gift cards this year. Many are credit cards preloaded with cash and<br />
redeemable anywhere that the regular credit cards can be used. Many foodservice operators have entered the fray as well.<br />
Joining Starbucks and other operators in offering such cards are Pizza Hut, which features cards that can be activated in<br />
amounts up to $100, and Panera Bread Co., which is offering cards in denominations from $1–$200. In addition, Papa John’s<br />
International has rolled out a reloadable gift card called the Papa Card with values between $10 and $100 that can be used for<br />
payment of delivery, carryout and online orders. The company has teamed with 20th Century Fox Home Entertainment to offer<br />
card buyers a coupon for $7 off the DVD “X2:X-Men United” or $5 off DVDs purchased at Fox’s Web site. (NW 11/3/03 p78;<br />
SFS 11/03 p17; FIR 11/3/03 p6; NDNF 11/20/03)<br />
Personnel |<br />
Peter Hearl, President<br />
Jerry Buss, Chief Operating Officer<br />
News & Other |<br />
Yum! Brands reported sales in 2002 at U.S. outlets rose 9% to $14.6 billion on a 1% blended same-store sales increase as<br />
annual domestic revenues increased 11% to $5.4 billion. International openings for 2002 hit a record 1,051 units and<br />
international operating profit for the year grew 17% to $121 million. Yum! will give Pizza Hut a 4% boost in its marketing<br />
budget for 2003 to $300 million and its KFC and Taco Bell brands will receive 3% increases in their annual marketing budgets,<br />
to $200 million each. (NRN 2/24/03 p4)<br />
Pizza Hut’s first co-branded test unit with a quick-casual concept called Pasta Bravo opened earlier this year in Canonsburg,<br />
PA. Yum! Brands, the pizza chain’s parent, became a licensee of the Aliso Viejo, CA-based concept last year. Company<br />
executives said several Pizza Hut franchisees would open similar co-branded restaurants in different regions of the country<br />
before year’s end. The test unit reportedly is exceeding management’s expectations. (NRN 2/24/03 p4)<br />
Yum! Brands acquired rights to the Pasta Bravo restaurant concept for $5 million from Pasta Bravo Inc. of Aliso Viejo, CA. The<br />
deal includes the quick-casual recipes, cooking platform and trademarks but none of the 15-unit chain’s physical assets. Pasta<br />
Bravo’s menu features made-to-order pastas, pizzas, pasta salads and salads—all prepared in display kitchens. In late 2002,<br />
Yum! began testing co-branding Pizza Hut with Pasta Bravo. As a Yum! Brand, it will be managed by that company’s<br />
multibranding team, which is led by group president Aylwin Lewis. (NDNF 4/7/03)<br />
Back Yard Burgers’ co-branding has worked better with Taco Bell than with Pizza Hut in the chain’s first five co-branded<br />
restaurants. Thus far, three Taco Bell pairings have been opened—two in Louisville and one in St. Louis—and two Pizza Hut<br />
units in the small Tennessee towns of Fayetteville and Portland. The Pizza Hut pairing has not worked well, the two brands<br />
have agreed, with differences in preparation and cooking times presenting major hurdles. The burger brand will be removed<br />
from the two Pizza Huts later this year. Although specific results are not being revealed, the Back Yard pairings with Taco Bell<br />
have been successful, with five more co-branded sites in the works, two to be in the St. Louis area and three in Ft. Wayne, IN.<br />
No other Yum! Brands concepts are being considered for co-branding with the burger concept for the short term. Back Yard’s<br />
agreement with Yum! grants the option to co-brand up to 500 more of the burger outlets. (RB 5/1/03 p46<br />
Pizza Hut and Burger King each opened fast-food outlets in Iraq in large trailers on a British military base in Basra. A portion of<br />
the profits reportedly is to be given to charities benefiting Iraq. (NRN 4/28/03 p3)<br />
The Riese Organization, a multi-unit operator based in New York City, has switched to Pepsi-Cola North America as its<br />
exclusive soft-drink supplier at its more than 100 New York-area outlets. It signed a multi-year contract for Pepsi brands in<br />
fountain cups, bottles and cans. Among the concepts operated by Riese are T.G.I. Friday’s, Pizza Hut, Dunkin’ Donuts, KFC,<br />
Houlihan’s and Tad’s Steaks. Riese will convert from Coca-Cola products over a period of a few months. (NRN 2/24/03 p48;<br />
WRC 2/24/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
507
<strong>RISE</strong> COMPANY PROFILE<br />
Pizza Hut launched a summer promotion that offers a free DVD movie when customers buy a large pizza at regular price. A<br />
choice of four movies from MGM Home Entertainment are available: “Honeymoon in Vegas,” “Mr. Mom,” “Bill & Ted’s Bogus<br />
Journey” and “All Dogs Go to Heaven 2.” Pizza Hut estimated that it will distribute at least 10 million of the DVDs during the<br />
six-week promotion. The menu price of a large pie ranges from $12–$14. Pizza Hut’s same-stores sales in the U.S. declined<br />
4% in the first quarter of 2003. (NRN 7/7/03 p62)<br />
Pizza Hut reported a 1% decline in same-store sales for the second quarter ended June 14, following a drop of 4% in the first<br />
quarter. (Nation’s Restaurant News 09/08/03 p4)<br />
Yum! Brands Inc. reported domestic same-store sales for the four weeks ended September 6 at company-owned restaurants<br />
were flat compared to year-ago results. Same-store sales rose 2% at Taco Bell and 4% at Pizza Hut but fell 6% at KFC.<br />
Foreign systemwide sales increased 7% on a local-currency basis for the period. (NRN Daily NewsFax 09/12/03)<br />
Pizza Hut is running a discount promotion with Pepsi-Cola that is tied to the start of the football season. Customers can get an<br />
“NFL Deal” of a medium one-topping pizza and a 2-liter Pepsi for $1.99 when they buy a large specialty pizza at the regular<br />
price. Separately, Pizza Hut reportedly will be testing some healthier menu items this fall, including prepackaged salads and<br />
reduced-fat pizza made from lower-fat pepperoni and low-fat cheese. (NDNF 9/4/03; NRN 8/11/03 p62)<br />
Yum! Brands for the four weeks ended September 6, reported domestic same-store sales increased 2% at Taco Bell and 4%<br />
at Pizza Hut but decreased 6% at KFC. International system sales were 7% higher during the period. (Nation’s Restaurant<br />
News 9/22/03 p18)<br />
Pizza Hut reported same-store sales increased 1% for the four-week period ended October 4. (NRN Daily NewsFax 10/8/03)<br />
Pizza Hut rolled out the low-fat “Fit ‘N Delicious” thin crust pizza. The new offering has half the usual cheese and leaner<br />
meats, including chicken and ham. Depending on toppings, one slice contains 3.5 to 5 grams of fat, or 25% less than the Thin<br />
‘N Crispy pizza. (NDNF 10/16/03)<br />
Yum! Brands is accelerating its multi-brand strategy. The company is encouraging existing stores to add a second brand to<br />
their locations. The costs associated with such a move range from $150,000–$300,000, though the addition usually generates<br />
$200,000–$300,000 annually in sales. Yum!, which owns Taco Bell, KFC, Pizza Hut and A&W, also noted that multi-branded<br />
sites often have a more “contemporary” feel, with high ceilings, curved design elements and a variety of seating options from<br />
high tops to booths to tables. (NRN 10/20/03 p74)<br />
Pizza Hut reportedly is testing a bistro menu at about 20 restaurants across the country. Included on the menu are new pastas<br />
such as chicken pomodoro and Italian sausage penne; toasted sandwiches; and personal-size pizzas that include a buffalo<br />
chicken variety. A Lima, OH, unit that reportedly is part of the test will allow customers to vote for their favorite dishes. Items<br />
on that menu are priced from about $6–$7 and are available for dine-in, carryout and delivery. (NRN 12/1/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
508
Pizza Inn<br />
Headquarters<br />
5050 Quorum Drive, Dallas, Texas 75240 USA<br />
Tel: (972) 701 9955 Fax: (972) 960 7208<br />
Ownership: Public<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 163,175 171,265 178,399<br />
Company-owned ($000) 1,927 2,289 2,344<br />
Franchised ($000) 161,248 168,976 176,055<br />
U.S. Number of Units 367 375 395<br />
Company-owned 3 3 3<br />
Franchised 364 372 392<br />
International Sales ($000) 10,374 10,670 13,829<br />
International Units 30 57 82<br />
Average Sales/Unit ($000) 486 551 781<br />
Concept Positioning |<br />
Pizza Inn is one of the largest pizza chains in the U.S. Units offer booth and table service and a self-service salad bar. Home<br />
delivery, for which there is no charge, is now available through more than 50% of all Pizza Inns and accounts for some 35–<br />
40% of unit sales.<br />
Most full-service restaurants are freestanding, located close to offices, shopping centers and residential areas. Typical units<br />
occupy 3,000–5,000 sq. ft. and seat 130–185 customers. The interior decor is contemporary, with a family-style feeling.<br />
The company also has a delivery/carryout prototype (Delcos) of 1,000 sq. ft. that has limited or no seating but offers the same<br />
menu as its traditional full-service units. To add to business opportunities, the chain is rolling out “Delco with seats,” which<br />
offers delivery/carryout and the flexibility of limited seating for dining in.<br />
Its third prototype is an "Express" design for nontraditional sites that occupy 200–400 sq. ft. and offers a limited menu skewed<br />
heavily to pizzas and beverages. These stores are usually located at c-stores, airport terminals and college campuses.<br />
A self-serve buffet prototype has also been introduced. Slightly larger than the Delcos, the self serve design features a<br />
carryout station as well as a buffet and beverage station. Seating is between 60 to 70 for this 2,400–2,600-sq. ft. unit.<br />
Pizza Inn was founded in 1960 in Dallas, by Joseph Spillman. The chain started franchising in 1963. It was admitted to trading<br />
on the American Stock Exchange in 1979. In early 1987, it was acquired by Pantera's Corp., a regional pizza chain based in<br />
St. Louis. That then led to federal bankruptcy court. In 1990, the current company emerged from bankruptcy as the franchisor<br />
of Pizza Inn restaurants. In addition, Pizza Inn operates its own food purchasing and distribution division called Norco, which<br />
provides units with about 80% of their food products and restaurant supplies.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: variety of on Original thin, New York pan, Italian Hand-Tossed, or Stuffed Crust pizza. Also offers pepperoni<br />
wraps, spicy wings, salad bar, hot and cold pastas and desserts—all with quality Italian emphasis. Luncheon and evening<br />
buffet available. Beer and wine served in some locations. Check Averages: $12–$14.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
509
Personnel |<br />
Steve Ungerman, Chairman<br />
Ronald Parker, Chief Executive Officer<br />
Shawn Preator, Vice President of Finance<br />
Jim Clute, Vice President of Operations<br />
Brian Waters, Vice President of Operations<br />
Danny Meisenheimer, Vice President of Marketing<br />
Amy Woods, Director of Marketing<br />
Brandon Moore, Director of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Pizza Inn Inc. for the quarter ended September 28, reported same-store sales decreased 4.8%. (NRN Daily NewsFax 11/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
510
Pizzeria Uno Chicago Bar & Grill<br />
Headquarters<br />
100 Charles Park Rd., West Roxbury, Massachusetts 02132 USA<br />
Tel: (617) 323 9200 Fax: (617) 218 5379<br />
Ownership: Public<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 394,080 371,083 336,343<br />
Company-owned ($000) 251,202 240,010 218,024<br />
Franchised ($000) 142,878 131,073 118,319<br />
U.S. Number of Units 186 180 173<br />
Company-owned 117 114 110<br />
Franchised 69 66 63<br />
International Sales ($000) 8,293 5,106 3,052<br />
International Units 3 7 4<br />
Average Sales/Unit ($000) 2,158 2,102 1,982<br />
Concept Positioning |<br />
Pizzeria Uno Restaurant & Bars are a chain of casual dining, full-service restaurants targeted to appeal to middle- to uppermiddle-income<br />
individuals in the 17- to 49-year-old age group. Units are open 11:00 a.m. to midnight, seven days a week. In<br />
1996, though, the chain began repositioning itself into a casual dining concept under the name Pizzeria Uno Chicago Bar &<br />
Grill. In fiscal ‘97, it completed renovations to virtually all units that were necessary to align them with this repositioning. The<br />
program also includes development of a broader-based menu.<br />
Units are located in both urban areas and suburban shopping and entertainment areas and typically restaurants occupy<br />
average 5,400–5,800 sq. ft., with seating for approximately 180–210 customers. Each is individually designed to be compatible<br />
with local architectural styles and features wood, brass and ceramic tile although a new 5,000 sq. ft. prototype was developed<br />
in 1996. It features dark woods and brick with vintage signs, photographs and sport memorabilia to give it the flavor of a<br />
neighborhood pub.<br />
Its newest prototype averages 5,000 sq. ft. and replicates the look of an old Chicago warehouse. Polished concrete, brickwork,<br />
open ceilings and old time photos add to the ambiance. At the end of 1999, it had 25 of these units open.<br />
The company has several key ingredients in its pizza that are proprietary and are manufactured and sold to authorized dealers<br />
for resale to its restaurants. Other food ingredients and beverage products are negotiated directly with suppliers.<br />
In addition, Uno's has retail sales of partially baked pizzas and pasta products, which accounts for some 20% of revenue.<br />
Retail installations include the frozen food and deli sections of supermarkets nationwide as well as kiosks in General Cinema<br />
theaters and Doubletree Hotels. Expansion of this operation is continuing with placement in both domestic and international<br />
locations.<br />
The original "Pizzeria Uno" was founded in 1943 by Ike Sewell in Chicago. International Food Service Co. began restaurant<br />
operations in 1966 and became Uno Restaurant Corp in 1979. It went public in June 1987. In mid-1992, Pizzeria Uno<br />
announced the purchase of the original Pizzeria Uno restaurant in Chicago and development rights to Illinois for $3 million<br />
from the estate of Uno's founder. Included in the deal were two other Chicago landmarks— Pizzeria Due, a sister operation of<br />
the original Uno's, and Su Casa, an upscale Mexican restaurant.<br />
In the summer of 2001, the company completed its merger with Uno Restaurant Corp., led by chairman Aaron Spencer, and<br />
took the company private.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
511
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: Chicago-style deep dish pizza with fresh meats, spices, vegetables and real cheeses. Also Plizzettas—light,<br />
thin-crust pizzas, sandwiches, hamburgers, appetizers, pastas, salads and desserts. Total pizza sales around 50% of sales.<br />
Added grilled and sautéed entrees, charbroiled steaks, pastas, specialty chicken dishes and spicy regional favorites such as<br />
fajitas and Southwest-style ribs. Full liquor service. <strong>Menu</strong> Prices: $4–$9. Check Averages: $9.45.<br />
<strong>Menu</strong> Development |<br />
Pizzeria Uno is running an Uno’s Seafood Celebration. Promotional items include a Buffalo Chicken Quesadilla of grilled pizza<br />
wedges with buffalo chicken breast, red onions, fresh tomatoes and cheese served with salsa, sour cream and guacamole on<br />
request as well as a dessert of Strawberry Shortcake. Entrees are: ■ Grilled Shrimp & Sirloin—a skewer of chargrilled<br />
marinated shrimp with an 8-oz. petite sirloin ■ Lobster & Shrimp Pie—sweet lobster and jumbo shrimp baked in creamy sherry<br />
wine sauce with a Ritz cracker crumb topping; served with rice, a skinless bake or roasted vegetables. (Company Web Site)<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Pizzeria Uno is utilizing a money-back guarantee to create interest in its new 16-oz. boneless New York Strip. Priced at<br />
$13.99, the steak is tied to a guarantee that if guests do not agree it is the best steak value anywhere, they can get their<br />
money back. The deal was tested in two Northeast markets before being expanded systemwide. Other new spring offerings,<br />
available through the end of the summer, are: a house or Caesar salad topped with a choice of grilled chicken, grilled shrimp,<br />
teriyaki salmon, sirloin steak or lobster and shrimp (ranging in price from $3.99–$11.99) and strawberry shortcake. Joining the<br />
kids menu are macaroni and cheese ($3.79) and a cotton candy and cherry slush (99¢). (Restaurant Business Daily News)<br />
Personnel |<br />
Aaron Spencer, Chairman<br />
Paul MacPhail, President<br />
Robert Vincent, Chief Financial Officer<br />
M. Heyward Whetsell, Vice President of Marketing<br />
Christopher Gatto, <strong>Menu</strong> Development/R&D<br />
Thurman Charleston, Vice President of Operations<br />
Kerry Munsell, Director of Purchasing<br />
Dan Wheeler, Vice President of Marketing<br />
News & Other |<br />
Ft. Lauderdale-Hollywood International Airport in Florida is the site of three new restaurants opened by CA One Services.<br />
They are Cruzan Bar, Cheeburger Cheeburger and Pizzeria Uno. (NRN 2/10/03 p26)<br />
Delta Air Lines ran tests of onboard food sales on many economy-class flights through early February. The menu ranged from<br />
snack packs selling for $2 to lunch and dinner sandwiches and salads for $7. Gate Gourmet, Memphis, TN, provided the<br />
foods, which included Entenmann’s cinnamon rolls, Mrs. Field’s cookies and Pizzeria Uno sandwiches. Delta plans to use the<br />
test to develop a meal sales program for Song, its new low-cost carrier, which will inaugurate service on April 15. In addition,<br />
Delta may expand the program to its main-line routes as well. Northwest Airlines and America West have also been testing infight<br />
meal sales. (NRN 2/17/03 p82; FIR 2/10/03 p7)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
512
Pollo Tropical<br />
Headquarters<br />
7300 N. Kendall Dr., Miami, Florida 33156 USA<br />
Tel: (305) 670 7696 Fax: (305) 670 6403<br />
www.pollotropical.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 121,600 119,611 110,004<br />
Company-owned ($000) 100,400 97,611 90,004<br />
Franchised ($000) 21,200 22,000 20,000<br />
U.S. Number of Units 78 74 68<br />
Company-owned 58 53 49<br />
Franchised 20 21 19<br />
International Sales ($000) 1,800 2,900 6,000<br />
International Units 4 5 5<br />
Average Sales/Unit ($000) 1,700 1,750 1,836<br />
Concept Positioning |<br />
Pollo Tropical is a chain of value-oriented, quick-service restaurants specializing in fresh grilled chicken. Most units carry Pollo<br />
Tropical signage, however some newer units outside its core South Florida market are branded as TropiGrill. Restaurants are<br />
open seven days a week for lunch and dinner and offer sit down, carryout or drive-through service. Reportedly, dinner<br />
accounts for 53.3% of restaurant sales and lunch accounts for 46.7%. Additionally, drive-through sales contribute an average<br />
of 40.3% of overall sales and counter takeout another 20.6%.<br />
The chain's menu and cooking techniques are rooted in the traditional culinary stylings of the Spanish-speaking Caribbean. Its<br />
signature chicken (prepared without oils or breading) is marinated for 24 hours prior to grilling in a proprietary blend of tropical<br />
fruit juices and spices called Mojo. Its sides are made from scratch on-premise.<br />
The decor of Pollo Tropical restaurants incorporates a tropical and Latin theme with an open kitchen, high ceilings, large<br />
windows, light colored woods, decorative tiles and wrought iron balcony railings. Exteriors are painted in bright tropical colors<br />
and feature an illuminated tower entrance. Largely freestanding, units average approximately 3,200 sq. ft. with seating for 80–<br />
100. Adjacent fenced playgrounds are used where permitted.<br />
The first unit opened in 1988 in Miami by company founders Larry and Stuart Harris. The company went public in October<br />
1993 and signed its first franchise agreement in spring 1995. In July 1998, the company was acquired by Carrols Corp.<br />
Current management includes Alan Vituli, chairman and chief executive officer, and Daniel T. Accordino, president and chief<br />
operating officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
513
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature item: Grilled chicken prepared with a proprietary marinade of tropical fruit juices and spices—served in sandwiches,<br />
salads and platters. Family and Everyday meals include black beans and rice. Some also come with Caesar salad and<br />
Bananas Tropical. Also menus Island Pork and shrimp. Side dishes include black beans and rice, fried bananas, fried yucca,<br />
yucatan fries, congri, sweet plantains, French fries and corn. Desserts include Key Lime pie, flan and Caribbean Creme Cake.<br />
<strong>Menu</strong> Prices: $3.49–$13.49 Check Average: $8.11.<br />
Personnel |<br />
Nicholas Castaldo, President<br />
Vivian Lopez-Blanco, Chief Financial Officer<br />
Amy Hybl, Vice President of Operations<br />
Jeff Webb, Director of Purchasing<br />
Scott Feldman, Director of Marketing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
514
Ponderosa/Bonanza<br />
Headquarters<br />
6500 International Pkwy., Plano, Texas 75093 USA<br />
Tel: (972) 588 5000 Fax: (972) 588 5653<br />
www.ponderosasteakhouses.com, www.bonanzarestaurants.com<br />
Ownership: Private<br />
Segment: Limited Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 680,000 630,000 635,000<br />
Company-owned ($000) 215,000 205,000 200,000<br />
Franchised ($000) 465,000 425,000 435,000<br />
U.S. Number of Units 551 480 500<br />
Company-owned 150 143 140<br />
Franchised 401 337 360<br />
International Sales ($000) 80,000 92,500 77,000<br />
International Units 71 78 63<br />
Average Sales/Unit ($000) 1,225 1,200 1,428<br />
Concept Positioning |<br />
Metromedia Restaurant Group operates a Midscale steakhouse chain under two different brands: Ponderosa and Bonanza.<br />
The family-oriented restaurants serve lunch and dinner seven days a week. Service is buffet style for accessory items, with a<br />
waitress bringing hot entrees to the table after they are cooked.<br />
An average unit is freestanding and has about 5,000–6,000 sq. ft. with seating for 175–200. The decor, "new west" themed,<br />
combines brass and light oak to give the interiors a modern, appealing look.<br />
Ponderosa, Inc., began as a single steakhouse in Kokomo, IN, in 1965. The first Bonanza restaurant opened in 1963. In March<br />
1988, Ponderosa was purchased and in 1989, Bonanza was acquired by Metromedia Co. and Metromedia Steakhouses Co.,<br />
L.P. was formed to operate the two chains. In early 1997, Metromedia announced that is would unify its two steakhouse<br />
brands, from a business standpoint. Both the Ponderosa and Bonanza brands will continue to be used. The combined<br />
operations are headed by Doug Barber.<br />
In Spring 2003, Metromedia announced the sale of Ponderosa/Bonanza, along with Steak and Ale, to Apex Acquisition<br />
Partners, based in Irving, TX. Headed by Mark Bromberg and John Todd, Apex is also the manager of Semolina in Louisiana<br />
and Left in Albuquerque. The sale is subject to approval of a number of conditions, one being financing.<br />
<strong>Menu</strong> Positioning |<br />
Features variety of Double T Steaks—upgraded line including 6-oz. sirloin, 1-lb. T-bone and 10-oz. ribeye; entrees include<br />
baked potato and all-you-can-eat buffet and sundae bar. Also menus Hearty Homestyle Lunch Buffet that includes hot comfort<br />
foods and fresh-baked breads, cookies and brownies as well as a taco bar, potato bar, soup kiosk and fresh salad fixings.<br />
Rancher’s Skillet Breakfast Buffet available on weekends at many stores; features egg casserole, cinnamon and caramel rolls,<br />
Belgian waffles and cold cereals. Check Averages: $6<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
515
Personnel |<br />
Douglas Barber, President<br />
Gene Caldwell, Chief Financial Officer<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Metromedia Restaurant Group is selling its Bonanza, Ponderosa and Steak and Ale chains to focus on its 305-unit Bennigan’s<br />
brand. Acquiring the nearly 550 units is Apex Steakhouse Acquisition Partners of Irving, TX. Terms of the deal were not<br />
disclosed by the two private companies. The sale includes 69 Bonanza and 412 Ponderosa restaurants, most of which are<br />
franchised, and the 66 Metromedia-owned units of Steak and Ale. Apex is headed by Mark Bromberg, a veteran of East Side<br />
Mario’s, and John Todd, a former Gateway Computers executive. Upon completion of the sale, Doug Barber, president of<br />
Metromedia Family Steakhouse, and Bill Spae, president of Steak and Ale, will join Apex Restaurant Group. The Family<br />
Steakhouse group includes the Bonanza and Ponderosa brands. Metromedia Restaurant Group said that the sale of the three<br />
concepts will allow it to be more focused on its casual-dining Bennigan’s Irish American Grill & Tavern brand. (NRN 3/24/03<br />
p1)<br />
Bennigan’s Irish American Grill & Tavern will grow by 25–30 units this year, with four or five of those to be company-operated<br />
units. It would like to increase the number of company-operated unit openings to 10 or 15 per year. In 2002, Bennigan’s<br />
opened 22 outlets, of which about 19 were franchised. Parent Metromedia Restaurant Group announced in March that it was<br />
selling its almost 550 Bonanza, Ponderosa and Steak and Ale restaurants to Steakhouse Acquisition Partners to focus on its<br />
305-store Bennigan’s. The company currently operates about 175 units, with the remainder—including 22 international units—<br />
franchised. (NRN 5/26/03 p1)<br />
Metromedia Restaurant Group will sell its Bennigan’s chain to Apex Restaurant Group, which agreed in March to acquire<br />
Metromedia’s Bonanza, Ponderosa and Steak and Ale chains. Terms of the deal were not disclosed. Apex owners Mark<br />
Bromberg and John Todd will serve as chairman and chief executive, respectively, of the new MGR-Apex management. As of<br />
the end of 2002, the Bennigan’s Irish-American Grill and Tavern system had 285 restaurants, of which 110 were franchised.<br />
The four brands being acquired by Apex represent nearly 800 restaurants. Apex also manages the Left at Albuquerque,<br />
Semolina, Harrigan’s and the new CJ’s Roadhouse chain concepts. (NDNF 9/8/03)<br />
CJ’s Roadhouse owner Pinnacle Restaurant Group plans to open several more of the casual restaurants within the next six<br />
months in Texas and Oklahoma. Signature offerings include flame-roasted chicken, barbecued beef ribs, sandwiches and<br />
salads. The concept is being run by Apex Restaurant Group, which recently purchased Metromedia Restaurant Group’s<br />
Ponderosa, Bonanza and Steak and Ale brands and most recently, its Bennigan’s brand as well. Pinnacle also owns the<br />
Harrigans Chop House Grill chain, which filed for Chapter 11 bankruptcy protection earlier this year. (R&I 8/1/03 p13)<br />
Metromedia Restaurant Group’s intended buyers revised the deal following an announcement last March that they would<br />
acquire Steak and Ale, Ponderosa and Bonanza. Instead, investors Mark Bromberg and John Todd, the principals in Apex<br />
Restaurant Group LP of Irving, TX, bought an unspecified minority stake in MRG and assumed management of the company,<br />
which operates and franchises 836 units, including the Bennigan’s chain. Majority control is retained by Metromedia Co. of<br />
New Jersey. Bromberg, who founded the East Side Mario’s Italian chain and is now chairman of MRG, said that the brands will<br />
have new capital and that the executive team will work to reinvent and reinvigorate the brands and also to possibly grow them.<br />
Todd, the former chief financial officer of Gateway Computer, is MRG’s chief executive. (NRN 9/15/03 p3 & 9/22/03 p5; RB<br />
10/1/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
516
Popeyes Chicken & Biscuits<br />
Headquarters<br />
6 Concourse Pkwy. Suite 1700, Atlanta, Georgia 30328 USA<br />
Tel: (770) 391 9500 Fax: (770) 353 3074<br />
www.popeyes.com<br />
Ownership: Private<br />
Segment: Limited Service Chicken<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,245,000 1,168,350 1,095,484<br />
Company-owned ($000) 180,000 118,800 142,061<br />
Franchised ($000) 1,065,000 1,049,550 953,423<br />
U.S. Number of Units 1,377 1,327 1,248<br />
Company-owned 146 96 130<br />
Franchised 1,231 1,231 1,118<br />
International Sales ($000) 230,000 155,000 135,000<br />
International Units 295 293 253<br />
Average Sales/Unit ($000) 910 900 1,092<br />
Concept Positioning |<br />
AFC Enterprises, Inc. owns, operates, develops, and franchises Popeye’s Chicken & Biscuits stores. Popeye’s is the second<br />
largest fast-food chicken chains in the U.S. Site selection, real estate, construction, advertising, and purchasing and<br />
distribution are handled by headquarters. Operators buy seasoning and batter mix from the company commissary.<br />
Restaurants offer sit-down, carryout, and, at most newer units, drive-through service. Takeout orders account for 65–70% of<br />
unit sales, and 40% of volume is generated by the drive-through window. Stores are open for lunch, dinner and snacks.<br />
Breakfast is served in 10% of the stores.<br />
Most units are freestanding along highways or adjacent to suburban shopping centers. There are some storefront sites in<br />
urban areas and one experimental mall location. In 2001, Popeyes launched its new Heritage restaurant design image.<br />
Exteriors generally feature architecture consistent with that found in the historic French Quarter of New Orleans, Popeyes'<br />
birthplace. The drive-thru overhang has been transformed into a balcony, and the exterior of the building features gooseneck<br />
lighting and New Orleans-themed murals.<br />
Popeye’s has also developed a fast-casual concept called Cajun Kitchen. With a menu that specializes in Cajun foods<br />
including its traditional fried chicken and biscuits base, recipes used are distinctly different from those at its Popeye’s stores.<br />
The first Cajun Kitchen is located in suburban Chicago. It is approximately 4,300 sq. ft. with seating for some 100 patrons. The<br />
company is also evaluating the development of smaller prototypes that can be positioned in nontraditional locations such as<br />
malls and airports. The concept is expected to generate average unit volumes in the $1.6 million range, with checks averaging<br />
$6.50–$8.<br />
Al Copeland, who entered the restaurant business as a franchisee in his brother's donut chain, opened his first chicken<br />
restaurant in Arabi, a suburb of New Orleans, in 1972. That unit, the forerunner of Popeye’s, was a takeout-only concept. By<br />
1974, the chain had grown to 15 units, and in 1976, the company began franchising. In 1989, the foodservice company<br />
controlled by Al Copeland, acquired Church’s Fried Chicken, and the corporate name was changed to Al Copeland<br />
Enterprises, Inc.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
517
<strong>RISE</strong> COMPANY PROFILE<br />
In December 1990, Al Copeland Enterprises defaulted on a $391-million debt payment and began a restructuring plan for its<br />
two chief creditors, later filing for bankruptcy protection. It emerged from bankruptcy in late 1992 under the corporate name of<br />
America's Favorite Chicken Co. Copeland retained his spice business that holds a contract with Popeye’s through the year<br />
2004 and is a franchisee of 26 Church’s and Popeye’s stores.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: spicy and mild chicken served by the piece, by the box and in dinner combinations—all with special buttermilk<br />
biscuits as well as in sandwich form. Also menus shrimp, Creole chicken etoufee and chicken and sausage jambalaya. Sides<br />
include Popeye’s red beans 'n rice, Cajun rice, onion rings, battered fries, mashed potatoes and gravy, coleslaw, jalapeno<br />
peppers and corn-on-the-cob. Pies and Mardi Gras Cheesecake available as dessert. Breakfast includes chicken, sausage,<br />
bacon and eggs and cheese biscuits as well as sides of hash browns, grits and cinnamon biscuits.<br />
<strong>Menu</strong> Development |<br />
Popeyes Chicken & Biscuits has made its Spicy Chicken Strips a permanent offering. Made with chicken breast meat, the item<br />
is billed as slightly spicier than the Classic Mild Chicken Strips launched four years ago. For a limited time, diners can order<br />
two strips (crispy or mild) with a biscuit for $1.99. The strips will also be sold as three-piece dinners and combo meals. The<br />
chain is also testing a Chicken Strip Po’ Boy Sandwich made with either spicy or mild chicken strips. It is priced at $2.99 with a<br />
medium soft drink. (Restaurant Business Daily News)<br />
Popeyes Chicken & Biscuits added spicy chicken breast strips to its permanent menu. For an introductory price of $2.99,<br />
customers receive two strips and a biscuit. (NDNF 2/12/03)<br />
. It includes white-meat chicken strips, lettuce and pickles on warm french bread and is priced at $2.99 with a medium drink at<br />
participating stores. (NRN Daily NewsFax)<br />
Popeyes is testing Sweet Heat Glazed Wings in the Chicago and Augusta, GA, markets. Described as “whole wings covered<br />
in a zesty glaze with a Bayou bite,” a three-piece portion of wings with a biscuit is priced at $2.49. The test is further evidence<br />
of the more aggressive product-development pace parent AFC Enterprises president Dick Holbrook had mentioned earlier this<br />
year. Holbrook is focusing on new products to stimulate sales and help avoid discounting. (Restaurant Business <strong>Menu</strong><br />
Strategies Newsletter, 6/10/03)<br />
Wendy’s plans to launch chicken strips later this year. According to comments from CEO Jack Schuessler in a conference call,<br />
the item will be added in the second half of 2003. Boneless chicken strips are already popular items at Popeyes, Domino’s,<br />
Hardee’s, KFC and Papa John’s. (Restaurant Business Daily News, 6/9/03)<br />
Popeyes Chicken & Biscuits rolled out three healthful-alternative meals this month. The products are the roasted-turkey Po’<br />
Boy sandwich, Cajun turkey and roasted turkey served over vegetable rice. (Nation’s Restaurant News 11/17/03 p14)<br />
AFC hopes to boost sales by selling more higher-priced meals and abandoning its bargain-price strategy. The company also<br />
plans to roll out new food items in an effort to attract additional customers. Popeyes currently is testing new seafood, roasted<br />
chicken and turkey dishes that include roasted turkey served over vegetable rice, roasted turkey Po’ Boy sandwiches and<br />
Cajun turkey. Church’s is expected to continue testing shrimp dishes, chicken tenders and Texas-style chicken. In addition,<br />
Popeyes will feature limited-time offers on crawfish and holiday family meals. (Food Institute Report 11/17/03 p7; Nation’s<br />
Restaurant News 11/17/03 p14)<br />
International Activities |<br />
Popeyes Chicken & Biscuits signed three international development deals for a total of 214 outlets to open in Mexico, China<br />
and Jamaica over the next 10 years. It signed a 150-unit agreement with Mexican operator Grupo Proalimex for 150 units<br />
throughout Mexico. In central China, MecBonn Chengdu Restaurant Management Co. inked a deal for 54 units, including three<br />
this year. And in Jamaica, a total of 10 units are to be opened via a deal with Restaurant Associates Cajun Ltd. (NRN 7/7/03<br />
p36; FIR 6/23/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
518
Technology |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Instill Corporation announced that it will integrate the back-office systems at the restaurants and bakeries of AFC Enterprises,<br />
Inc. The integration allows AFC, parent company of Church's Chicken, Cinnabon and Popeyes, to connect existing back-office<br />
solutions to Instill's distributor network, where product information, including availability and price, is automatically updated.<br />
The company also released its Version 6.0 of the Data and Analysis Solution. The software enables systemwide visibility and<br />
actionable information with the intention of driving down food costs. Changes to the solution include improved navigation and<br />
new reporting options. (Company Release 8/5/03 & 8/12/03)<br />
Personnel |<br />
Jeff Spotz, President<br />
Tom Whitley, Chief Marketing Officer<br />
David Smith, Vice President of Finance<br />
Glen Helton, Vice President of Operations<br />
Sue Harwell, Vice President of Marketing<br />
Mary Townsend Smith, Product Development<br />
William Jacob, Chef<br />
News & Other |<br />
Popeyes Chicken & Biscuits closed its Cajun Kitchen quick-casual concept. In addition, it withdrew from plans to open a New<br />
Orleans-style restaurant in Atlanta that was to be called Tib’s Grill and would have been its first full-service concept. (NRN<br />
6/16/03 p88)<br />
AFC Enterprises Inc. reported domestic systemwide same-store sales decreased 1.4% for the four weeks ended September 7.<br />
The fallen sales included a decline of 2.3% at Church’s, 1.2% at Popeyes but a 1.4% increase at Cinnabon. (NRN Daily<br />
NewsFax 9/22/03)<br />
AFC Enterprises said its lenders will extend the deadlines for filing its annual report until October 31 and its 2003 quarterly<br />
reports until December 1. The agreement calls for AFC to deposit $32 million—about half of its proceeds from the recent sale<br />
of Seattle Coffee Co. to Starbucks Corp.—into a collateral account. If it does not meet its new deadlines for filing its financial<br />
statements, the deposited funds would be applied as prepayment against AFC’s term loans under its credit facility. AFC is<br />
parent of Popeyes Chicken & Biscuits, Church’s Chicken and Cinnabon. In other news, AFC’s stock price fell 16.25% on its<br />
last full day of trading on the Nasdaq exchange after it disclosed that its common stock was being delisted. AFC said its stock<br />
would be quoted on the “Pink Sheets” for unsolicited trading rather than on the OTC Bulletin Board because it had not filed<br />
financial statements dated within six month of a possible quote. Its stock was dropped by Nasdaq for similar reasons. The<br />
company said it was working to complete “as soon as possible” restatements for 2002, 2001 and 2000 and to file its 10-K<br />
annual and 10-Q quarterly reports with securities regulators for fiscal 2002 and the first two quarters of 2003. (NRN 8/25/03<br />
p81 & 9/1/03 p116)<br />
Allied Domecq Quick Service Restaurants (ADQSR) has restructured its corporate staff and named a new executive<br />
leadership team. The restructuring eliminated about 105 jobs, leaving the franchisor with about 1,235 employees. The move<br />
comes as ADQSR’s Dunkin’ Donuts is preparing for the October debut of espresso beverages at its more than 5,000 doughnut<br />
shops. The new line calls for training nearly 90,000 employees and spending about $40 million for new equipment. The<br />
restructuring comes about eight months after Jon Luther joined Allied Domecq as chief executive. He previously was president<br />
of Popeyes Chicken & Biscuits. The new leadership team includes RoJean DeChantal, people services officer; Will Kussell,<br />
chief U.S. operating officer; Paul Leech, chief operating officer, international; Joe Scafido, menu and concept officer; and<br />
Jennie Wilson, chief financial officer. In addition, the company has hired Gary Heckel, a former Darden executive, to handle<br />
concept development. ADQSR’s expansion plan for 2004 calls for 1,000 new points of sale in the U.S. and more than 400<br />
international outlets. (NRN 8/25/03 p4)<br />
Popeyes Chicken & Biscuits is testing salads at its Roswell, GA, store and is considering adding them to the menu. In addition,<br />
sister concept Church’s Chicken, also owned by Popeyes parent AFC Enterprises, is considering adding salads and skinless<br />
chicken to its menu. (FIR 8/11/03 p1)<br />
Popeyes Chicken & Biscuits for the third quarter ended October 5, reported same-store sales decreased 1.5%. (NRN Daily<br />
NewsFax 11/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
519
<strong>RISE</strong> COMPANY PROFILE<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
AFC expects to boost sales by selling more higher-priced meals and abandoning its bargain-price strategy. The company also<br />
plans to roll out new food items in an effort to attract additional customers. Popeyes currently is testing new seafood, roasted<br />
chicken and turkey dishes that include roasted turkey served over vegetable rice, roasted turkey Po’ Boy sandwiches and<br />
Cajun turkey. Church’s is expected to continue testing shrimp dishes, chicken tenders and Texas-style chicken. Salads will<br />
continue to be an emphasis at both chains. In addition, Popeyes will feature limited-time offers on crawfish and holiday family<br />
meals. AFC’s Cinnabon is introducing smoothies, bite-sized cinnamon treats and low-calorie cinnamon snacks mixed with fruit.<br />
(FIR 11/17/03 p7; NRN 11/17/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
520
Prandium, Inc.<br />
Headquarters<br />
18831 Von Karman Avenue, Irvine, California 92612 USA<br />
Tel: (714) 757 7900 Fax: (714) 757 8054<br />
www.prandium.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Chi-Chi's<br />
Hamburger Hamlet<br />
Koo Koo Roo<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 252,800 284,003 -<br />
Company-owned ($000) 252,800 284,003 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 171 187 -<br />
Company-owned 171 187 -<br />
Franchised - - -<br />
International Sales ($000) 10,000 9,000 -<br />
International Units 8 7 -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Prandium is the largest operator of full-service Mexican restaurants in the U.S., with operations under the four principal brand<br />
names: Chi-Chi's, El Torito, Hamburger Hamlet and Koo Koo Roo. In addition, it has a non-exclusive franchise agreement with<br />
HomeTown Buffet.<br />
Family Restaurants, one of its predecessor companies, dates back to a single California coffee shop started in 1948 by John<br />
and Audrey McIntosh and known as Coco’s. Operations grew into a number of small chains that were consolidated in 1965<br />
and eventually went through several leveraged buyouts. The most recent was completed in early 1994 with the formation of<br />
Family Restaurants, Inc.<br />
In 1996, Family Restaurants sold its coffee shop holdings, Coco’s and Carrows, to Advantica Restaurant Group but kept its<br />
Mexican restaurant brands. In November 1998, the company completed a merger with Koo Koo Roo, another Mexican<br />
operator that focuses on the convenience and value associated with quick service, but the quality, freshness and variety<br />
associated with upscale, casual full-service dining. The merger created an entity called Koo Koo Roo Enterprises Inc. Its<br />
current corporate name was adopted in early 1999.<br />
In March 2000, the company announced the sale of all but six El Torito restaurants to Acapulco Acquisition Corp. for some<br />
$130 million. The deal was completed in June 2000. Prandium also announced in 2001 that it intends to sell the chain due to<br />
its inability to fund expansion.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
521
Personnel |<br />
Hugh Hilton, Chief Executive Officer<br />
T. Matthew Klein, Chief Operating Officer<br />
Robert Trebing Jr., Chief Financial Officer<br />
Stan Harvey, Director of Purchasing<br />
Don Henry, <strong>Menu</strong> Development/R&D<br />
Laurie Katapski, Senior Vice President of Marketing<br />
Bill Zavertnik, Chief Operating Officer<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Prandium is paying an outside consultant $165,000 a month to run its operations, which include Chi-Chi’s, Koo Koo Roo and<br />
Hamburger Hamlet. The company hired two executives from turnaround firm Alvarez & Marsal to serve as chief executive and<br />
chief operating officer. In addition to the $165,000-per-month fee, Prandium will pay 213,000 in preferred shares if it stays out<br />
of U.S. Bankruptcy Court through February 2004. (RB 4/1/03 p12)<br />
Prandium received a $6.4 million bid to purchase the company, according to a securities filing. The offer for the parent of Chi-<br />
Chi’s, Koo Koo Roo and Hamburger Hamlet comes from Prandium Acquisition Company LLC and the Los Angeles-based<br />
firms Triyar Cos. LLC and 180 Degree Group LLC, which teamed up with Goense Boundes & Partners of Lake Forest, IL, to<br />
submit a non-binding letter of intent to purchase the 178-unit restaurant operator and franchisor. The company’s spokesman<br />
could not be reached for comment. Not included in the deal is 14-unit Hamburger Hamlet, which Latin Intellectual Properties of<br />
Los Angeles has been seeking to buy since May 2002. Its $15 million bid for the chain was rejected last August. (NDNF<br />
5/30/03)<br />
Prandium said that its Koo Koo Roo chain agreed to sell its assets to Fuddruckers for about $4 million, according to an SEC<br />
filing. Koo Koo Roo and Chi-Chi’s, both subsidiaries of Prandium, had just filed for Chapter 11 bankruptcy protection. In related<br />
news, Prandium’s Hamlet Group subsidiary, operator of 14-unit Hamburger Hamlet, is negotiating to sell its assets to<br />
Fuddruckers. Prandium said that it is considering placing Hamburger Hamlet under the Chapter 11 shield as well, noting that<br />
the hamburger chain is a source of positive cash flow for the company. The judge of the Chapter 11 proceedings of Chi-Chi’s<br />
and Koo Koo Roo reportedly said he would approve $2.4 million in interim debtor-in-possession financing to the chains to fund<br />
operations until November 5. In addition, Chi-Chi’s entered into a non-binding letter of intent with CC Acquisition Holding Co.<br />
LLC, a newly formed entity whose majority owner is Worldwide Entertainment Inc., a Delaware corporation. (NDNF 10/10/03 &<br />
10/13/03)<br />
Prandium is selling its Chi-Chi’s, Koo Koo Roo and Hamburger Hamlet brands. Prandium, which filed for Chapter 11 protection<br />
on October 8, already has potential buyers for the three brands. According to Prandium CEO Hugh Hilton, Chi-Chi’s has<br />
entered into a nonbinding letter of intent with CC Acquistion Holding Co. LLC, whose majority owner is Worldwide<br />
Entertainment Inc. Koo Koo Roo and Fuddruckers have entered into a definitive asset purchase agreement, and The Hamlet<br />
Group is also reported to be in negotiations with Fuddruckers. (NRN 10/20/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
522
Pretzel Maker<br />
Headquarters<br />
2855 E. Cottonwood Pkwy., Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
www.pretzelmaker.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 31,800 35,000 33,000<br />
Company-owned ($000) 1,300 1,500 1,000<br />
Franchised ($000) 30,500 33,500 32,000<br />
U.S. Number of Units 181 182 163<br />
Company-owned 6 10 5<br />
Franchised 175 172 158<br />
International Sales ($000) 5,500 8,000 8,000<br />
International Units 35 25 26<br />
Average Sales/Unit ($000) 180 190 199<br />
Concept Positioning |<br />
Growing from a one-store concept in 1991 to a chain of more than 200 stores owned by Mrs. Fields' Famous Brands,<br />
Pretzelmaker features a variety of soft-dough pretzels covered in a variety of tastes. Jeffrey Trip created Pretzelvania in 1991<br />
in Layton, UT, and sold the company a year later to an investment group, which changed the name to Pretzelmaker.<br />
Units are located in malls and range in size from 500 to 700 sq. ft. Kiosks are also available for high-traffic areas. Due to the<br />
open layout and display cases, customers can enjoy watching pretzels being rolled and baked in minutes. No seating is<br />
available.<br />
By 1995, the chain had grown to 40 stores, and was acquired by Mrs. Fields in 1998. Primarily concentrating on the West<br />
Coast and plains states, Pretzelmaker franchises have also emerged in the south and southeast.<br />
<strong>Menu</strong> Positioning |<br />
The basic pretzel is coated in everything from cinnamon to caramel nut, poppy seed to parmesan. Besides the seven varieties<br />
of pretzels, the menu also features a pretzel-wrapped hot dog and Stix, a 10- or 20-count mini-pretzel suitable for dipping in<br />
nacho cheese, cheddar cheese, cream cheese or pizza sauces.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
523
Pretzel Time<br />
Headquarters<br />
2855 E. Cottonwood Pkwy., Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
www.pretzeltime.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 45,000 52,000 45,000<br />
Company-owned ($000) 17,000 22,000 18,000<br />
Franchised ($000) 28,000 30,000 27,000<br />
U.S. Number of Units 242 293 231<br />
Company-owned 81 125 91<br />
Franchised 161 168 140<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 175 190 197<br />
Concept Positioning |<br />
Predominantly located in shopping malls, Pretzel Time is the largest of the three fresh-pretzel makers Mrs. Fields currently<br />
operates, the other two being Hot Sam and Pretzelmaker. Units are largely designed for high-traffic areas, with an average<br />
size of 700 sq. ft. Though no seating is available, customers can enjoy watching pretzels being rolled, twisted and baked.<br />
Pretzels, produced under contract, are shipped frozen and then baked on-premise. Its fresh-squeezed lemonade is considered<br />
"the best in the country," with approaches made from other companies for its formula. Pretzel Time products are made from<br />
scratch, hand-rolled, baked and served hot.<br />
Through a series of transactions in 1997, Mrs. Fields' Holding acquired all 79 Pretzel Time stores from H&M Concepts Ltd.<br />
Co., along with all of Pretzel Time's common stock. The company’s ownership in Pretzel Time was completed in 1998.<br />
<strong>Menu</strong> Positioning |<br />
Signature items—variety of soft hot pretzels with toppings such as Cheddar cheese, nacho cheese and pizza sauce or flavors<br />
such as cinnamon. Also has dips such as jalapeno, salsa, cream cheese, caramel and Parmesan. Pretzelmaker menus<br />
Prezelmeal, which is dough baked with turkey, ham or shredded Cheddar cheese inside; prices around $2.99. Also menus soft<br />
drinks, lemonade, coffee and other beverages. Check Averages: $2–$3.50<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
524
Quality Dining, Inc.<br />
Headquarters<br />
4220 Edison Lakes Pkwy., Mishawaka, Indiana 46545 USA<br />
Tel: (219) 271 4600 Fax: (219) 271 4162<br />
www.qualitydining.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Grady's American Grill<br />
Spageddies/Papa Vino's<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 259,256 226,785 -<br />
Company-owned ($000) 259,256 226,785 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 174 149 -<br />
Company-owned 174 149 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Quality Dining is not only a franchisee of Burger King and Chili's Grill & Bar but it also owns and operates two casual dining<br />
chains: Grady's American Grill and Papa Vino’s.<br />
The Burger King units (located in northern IN and southern lower peninsula MI) average 3,000 sq. ft. with seating for around<br />
100. All of them have drive-through windows and are open approximately 20 hours a day. Average unit volumes are currently<br />
running above the system average of $1.1 million. The company continues to develop Burger Kings and has plans to replace<br />
existing ones.<br />
Its Chili's operation, as a result of the acquisition of Grayling Corp., is the second largest franchise system for that chain brand<br />
(with rights in IN, KY, MI, OH, DE, NJ and PA). Units average 6,800 sq. ft. with seating for 255 people in the dining room and<br />
an additional 45 in the bar area.<br />
Quality Dining was founded in 1981 when it acquired two Burger Kings in Detroit, MI. Its initial public offering was made in<br />
March 1994. Daniel B. Fitzpatrick joined Quality in 1982 and serves as its chairman, president and chief executive officer. In<br />
1995, it acquired Grady's American Grill and Spageddies Italian Kitchen from Brinker International and in early 1996,<br />
Bruegger's Bagels. In the fall 1997, it completed the sale of Bruegger’s Bagels back to its founders. In late 2001, Quality<br />
Dining announced the sale of nine Grady's American Grill units to Brinker International for $10.4 million.<br />
<strong>Menu</strong> Positioning |<br />
Features Italian stir-fry combinations such as sautéed onion and peppers, Italian sausage or chicken and spaghetti in<br />
cacciatore sauce, pizza, grilled meats, soups, salads, pastas and other Italian favorites. <strong>Menu</strong> Prices: $6.95–$14.95.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
525
Personnel |<br />
Daniel Fitzpatrick, Chairman<br />
Chris Collier, Vice President of Finance<br />
Thomas Hanson, Vice President of Marketing<br />
Jerry Fitzpatrick, Senior Vice President of Operations<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Quality Dining for the third quarter, reported comparable store sales decreased 9.8%. (Restaurant Business Daily News<br />
11/13/03)<br />
Quality Dining for the fourth quarter ended October 26, reported a 7.9% decrease in earnings on a 1.3% decrease in revenue.<br />
Net income decreased to $1.1 million from $1.2 million for the same quarter a year ago. (NRN Daily NewsFax 12/30/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
526
Quiznos Subs<br />
Headquarters<br />
1415 Larimer St. Suite 400, Denver, Colorado 80202 USA<br />
Tel: (720) 359 3300 Fax: (720) 359 3399<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 615,000 365,000 255,974<br />
Company-owned ($000) - 16,000 14,974<br />
Franchised ($000) 615,000 349,000 241,000<br />
U.S. Number of Units 1,800 1,297 850<br />
Company-owned - 40 35<br />
Franchised 1,800 1,257 815<br />
International Sales ($000) 50,000 30,000 25,000<br />
International Units 188 150 122<br />
Average Sales/Unit ($000) 422 380 427<br />
Concept Positioning |<br />
Quizno’s Classic Subs positions itself as an upscale, limited-service, sandwich chain offering high-quality ingredients and<br />
healthy menu items. Serving both lunch and dinner, units are open seven days a week. Takeout accounts for approximately<br />
50% of sales. Catering and delivery are also available.<br />
On average, units are between 1,200 and1,600 sq. ft. and seat 30–40 guests. The restaurants range from freestanding and<br />
mall food court locations to smaller “Quizno’s Express” units in nontraditional locations, such as convenience stores and sports<br />
facilities. The upscale decor has an Italian deli ambience with a red and green color scheme, reproductions of old Italian food<br />
labels and hand-painted Italian-style posters. An open kitchen completes the look.<br />
Boyd Bartlett and Todd Disner founded Quizno’s in Denver in 1981, and in 1991 the chain was bought by franchisee Richard<br />
Schaden and his father. In 1997, the company acquired Bain’s Deli and then sold most of the deli back to that organization in<br />
1999. In mid-2001 the company accepted a management-led buyout. The deal was completed in December 2001 and took the<br />
company private.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: warm, oven-baked submarine sandwiches with high-quality meats such as wine-cured Genoa Salami,<br />
pepperoni and capicola as well as real turkey breast, and natural cheeses served on soft baguettes. “Classic Lite” collection<br />
offers sandwiches and salads for consumers looking for lowfat, healthy offerings. Also menus salads, soups, desserts and<br />
beverages. Check Average: $6.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
527
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Quizno’s is bringing back its Chicken Carbonara Sub due to popular demand. It features strips of white-meat chicken, melted<br />
mozzarella, bacon, mushrooms, spices and bacon alfredo sauce. (NRN Daily NewsFax)<br />
. The sandwich features smoked turkey, ham, Monterey Jack cheese, fresh vegetables and a three pepper chili sauce. Priced<br />
at $4.29, $5.29 or $7.29 depending on size, it will be available through June 8. (Restaurant Business <strong>Menu</strong> Strategies<br />
Newsletter)<br />
Technology |<br />
American Express Co.'s ExpressPay is being tested by Carl's Jr., Dairy Queen, Quiznos Subs and Schlotzsky's Deli. Currently<br />
limited to the Phoenix area, the cashless transaction system charges a customer's American Express account from a keychain<br />
fob with RFID technology. Participating users have reported 30–40% quicker checkout times. (Nation's Restaurant News<br />
8/11/03 p70)<br />
Personnel |<br />
Richard Schaden, Chairman<br />
John Gallivan, Chief Financial Officer<br />
Mark Wilson, Vice President of Purchasing<br />
Jennifer Sanning, Vice President of Marketing<br />
News & Other |<br />
Quiznos Sub is funding a systemwide remodeling program for its more than 2,000 stores to incorporate elements of its new<br />
prototype design. The renovations, to be completed by year’s end, will be paid for by Quiznos for company-owned as well as<br />
franchised stores. Changes include revamped signage with a new logo; new menu boards; lower counters to allow customers<br />
to watch as their sandwich is prepared; a highlighted pepper bar and beverage station; and addition of a glass artisan-bread<br />
display cabinet. Individual stores will be remodeled in one night. (NRN 4/28/03 p3)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
528
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
The U.S. Marine Corps has no intention of voiding its $881 million foodservice contract with French-based Sodexho, despite a<br />
request for cancellation from 60 Republican members of Congress that was sent to Defense Secretary Donald Rumsfeld,<br />
according to a Marines official. Officials of Sodexho’s U.S. arm emphasized that such a cancellation would primarily affect<br />
American employees of the company. In related news, Sodexho was preparing to open a food court at the Miramar Air Naval<br />
Station in San Diego in May. Miramar is the only military base at which Sodexho operates cash facilities. Its new food court will<br />
include commercial brands such as Quiznos and Sodexho brands such as Sky Ranch Grill and La Salsa. (NRN 4/21/03 p3 &<br />
6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
529
<strong>RISE</strong> COMPANY PROFILE<br />
Sodexho has completed the first year of its eight-year contract with the U.S. Marine Corps. Worth $850 million, the venture<br />
covers both West Coast and East Coast contracts. In addition, Sodexho recently signed a separate contract to manage<br />
several retail foodservice outlets at the Marine Corps Air Station in Miramar, CA. They include Starbucks, Freshëns, Quiznos,<br />
Taco Bell, KFC, a restaurant at the base golf course and operations in the Enlisted Club and Officers Club. Sodexho uses<br />
Defense Department purchasing specifications and follows recipes from the Armed Forces Recipe System. At selected West<br />
Coast mess halls, Sodexho is running a test of a 21-day-cycle menu rather than the military’s standard 28-day cycle. The test<br />
also allows Sodexho to introduce a few menu items of its own. The Marines are anxious to improve mess hall participation.<br />
Single Marines living on base receive a meal card but on any given day, only about 55% take advantage of their free meals.<br />
The Marine Corps would like to find out why participation is so low and improve it. (NRN 11/24/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
530
Rainforest Cafe<br />
Headquarters<br />
1400 Post Oak Blvd., Houston, Texas 77056 USA<br />
Tel: (713) 850 1010 Fax: (713) 850 7274<br />
www.rainforestcafe.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 230,000 234,000 253,200<br />
Company-owned ($000) 230,000 234,000 253,200<br />
Franchised ($000) - - -<br />
U.S. Number of Units 25 24 27<br />
Company-owned 25 24 27<br />
Franchised - - -<br />
International Sales ($000) 43,000 46,900 55,600<br />
International Units 9 11 11<br />
Average Sales/Unit ($000) 8,500 9,000 9,377<br />
Concept Positioning |<br />
The Rainforest Cafe restaurant chain features not only a moderately-priced, high-quality menu but also an entertainmentoriented<br />
environmental decor and a retail shop that carries over 5,000 SKUs of branded apparel and gifts. Billed as “A Wild<br />
Place to Shop and Eat,” the concept appeals to young adults and families. Units are open for lunch and dinner. Walt Disney<br />
Animal Kingdom Orlando and Las Vegas locations are also open for breakfast.<br />
Restaurants also now accept reservations and have launched two new membership programs to encourage repeat business.<br />
Rainforest Cafes vary in size from 15,000–30,000 sq. ft. and seat around 300–600 patrons. The decor is suggestive of its<br />
name and comes complete with cascading waterfalls, large custom-designed aquariums, tropical rain showers, thunder,<br />
lightning and live tropical birds along with animated talking trees, butterflies and crocodiles. The retail shop accounts for 20–<br />
25% of its square footage and generates about 17% of company revenues. In regard to future domestic units, the company<br />
plans to lease all sites, which will range from 15,000–18,000 sq. ft, with seating for 300–400 and 10–20% devoted to retail.<br />
Steven Schussler developed the original prototype in 1989 in his own home. The first “real” unit was opened in 1994 at the<br />
Mall of America in Minneapolis. That same year, the company incorporated and completed its first public offering in 1995. In<br />
December 2000, Rainforest Cafe was acquired by Landry’s Seafood Restaurants, Inc.<br />
<strong>Menu</strong> Positioning |<br />
Features original recipes influenced by cuisines of Mexico, Asia, the Caribbean, American southwest and Louisiana, including<br />
Mogambo Shrimp. Extensive line of appetizers, sandwiches, pastas, salads, pizzas and desserts; most are given a “rainforest<br />
feel.” Popular items include Rasta Pasta—bow tie pasta with grilled chicken, pesto, vegetables and garlic cream sauce and<br />
Rumble in the Jungle—a pita bread sandwich with Caesar salad filling topped with turkey. Alcohol sales account for<br />
approximately 24% of sales. <strong>Menu</strong> Prices: $7.99–$18.99. Check Averages: $11.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
531
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Landry’s Restaurants expects to open 28–30 restaurants this year. Of those openings, 18–20 will be Joe’s Crab Shacks, its<br />
largest concept. The Joe’s openings include the conversion of about 10 existing Chart House locations to the Joe’s brand.<br />
Other openings include new units for the Saltgrass Steakhouse, Rainforest Cafe and Aquarium brands. (RB 2/15/03 p41)<br />
Personnel |<br />
Tilman Fertitta, Chairman<br />
Keith Beitler, Chief Operating Officer<br />
Joe Leahy, Vice President of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
532
Rally's Restaurants<br />
Headquarters<br />
14255 49th St. North, Clearwater, Florida 33762 USA<br />
Tel: (727) 519 2000 Fax: (727) 519 2001<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 239,000 245,000 248,986<br />
Company-owned ($000) 64,000 55,000 74,935<br />
Franchised ($000) 175,000 190,000 174,051<br />
U.S. Number of Units 387 404 427<br />
Company-owned 106 100 67<br />
Franchised 281 304 360<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 584 585 1,118<br />
Concept Positioning |<br />
Rally's Restaurants operates and franchises double drive-through hamburger restaurants. The double drive-through concept<br />
permits simultaneous service of two cars from opposite sides of the same building, with an objective of guest service within 45<br />
seconds of arrival at the window. Service, from 12–14 hours per day, seven days a week, is also available through walk-up<br />
windows. Drive-through business accounts for most sales. It is the largest chain of its kind in the U.S.<br />
Rally's uses fresh ground domestic beef for hamburger preparation. Fries are coated with a seasoned batter before frying in a<br />
cholesterol-free, premium all-vegetable cooking oil. Chili is prepared fresh daily.<br />
Stores are less than one-quarter the size of typical chains and require approximately one-half the land area. In temperate<br />
climates, the standard building design requires about 760–980 sq. ft.; in colder climates an enclosed vestibule surrounds the<br />
walk-up window area and requires an additional 120 sq. ft. of space. Most have a patio for outdoor eating containing canopy<br />
tables and chairs as well as landscaping. They do not have interior dining rooms.<br />
Rally's was founded in July 1984 and reorganized in January 1989 as Rally's, Inc. A public stock offering was issued August<br />
29, 1989. Several small acquisitions have been made; operating units involved have all been converted to the Rally's concept.<br />
In early ‘99, a stock swap merger with Checkers Drive-In Restaurants was announced. The merger was completed in August<br />
‘99 with the corporate entity known as Checkers Drive In Restaurants, Inc.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Big Buford double-stacked cheeseburger, Rallyburger, The Super Double and Barbecue Bacon<br />
Cheeseburger in single and double sizes. Also One of a Kind Fries— seasoned and batter fried. Also menus chicken breast<br />
sandwich, spicy sausage, all-beef hot dogs, chili cheese dogs, soft drinks and shakes. Chili and fish sandwiches available<br />
seasonally. Rallyburger Combo Meal (about 30% of sales) includes burger, fries and 16-oz. Coke for $2.99–$3.79. <strong>Menu</strong><br />
Prices: 99¢–$4.79. Check Average: $4.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
533
Rare Hospitality International, Inc.<br />
Headquarters<br />
8215 Roswell Rd. Building 600, Atlanta, Georgia 30350 USA<br />
Tel: (770) 399 9595 Fax: (770) 399 7796<br />
www.rarehospitality.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Bugaboo Creek Steak House<br />
Capital Grille, The<br />
Longhorn Steakhouse<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) - - -<br />
Company-owned ($000) - - -<br />
Franchised ($000) - - -<br />
U.S. Number of Units - - -<br />
Company-owned - - -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Rare Hospitality International, Inc. owns and operates 207 restaurants, including 170 LongHorn Steakhouse restaurants<br />
located primarily in the southeastern and Midwestern United States, 22 Bugaboo Creek Steakhouses located primarily in the<br />
northeastern and mid-Atlantic regions of the country and 15 The Capital Grille restaurants located in major metropolitan areas<br />
across the country. In addition, the company franchises three LongHorn Steakhouse restaurants in Puerto Rico and owns and<br />
operates two other restaurants under the names Hemenway’s Seafood Grille & Oyster Bar and The Old Grist Mill Tavern.<br />
Rare dates back to the founding of LongHorn Steaks in 1981. The company went public under the name LongHorn Steaks,<br />
Inc. in March 1992. After the acquisition of The Capital Grille and Bugaboo Creek Steak House concepts in September 1996,<br />
the company changed its name to Rare Hospitality International, Inc.<br />
LongHorn Steakhouse restaurants are casual-dining, full-service establishments serving both lunch and dinner, featuring a<br />
variety of menu items, including signature steaks, and an inviting decor reminiscent of the classic American West.<br />
The Capital Grille serves classic steak-house offerings combined with an award-winning wine list featuring over 300<br />
selections. Along with the regular restaurant seating, it also offers private dining rooms.<br />
Bugaboo Creek Steak House restaurants are designed as attractive, friendly establishments featuring moderately priced,<br />
flavorful food items from a variety of menu offerings and an offering of full liquor service. The décor is of a Canadian Rocky<br />
Mountain lodge.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
534
Personnel |<br />
Philip Hickey, Chairman<br />
Eugene Lee, President<br />
W. Douglas Benn, Chief Financial Officer<br />
Jeff Darby, Director of Purchasing<br />
Harry Day, Vice President of Marketing<br />
Robert Rutherford, <strong>Menu</strong> Development/R&D<br />
Dave George, Senior Vice President of Operations<br />
John Martin, Vice President of Operations<br />
Steve Micheletti, Vice President of Operations<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Rare Hospitality International Inc. for the third quarter ended September 28, reported revenues increased 19% to $166.2<br />
million compared to the same quarter last year. Net income increased 21% to $7.8 million. (NRN Daily NewsFax 10/27/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
535
Red Lobster<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809-3330 USA<br />
Tel: (407) 245 4000 Fax: (407) 245 6648<br />
www.redlobster.com<br />
Ownership: Public<br />
Segment: Full Service Seafood<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,302,500 2,206,000 2,071,686<br />
Company-owned ($000) 2,302,500 2,206,000 2,071,686<br />
Franchised ($000) - - -<br />
U.S. Number of Units 639 631 620<br />
Company-owned 639 631 620<br />
Franchised - - -<br />
International Sales ($000) 105,000 111,000 107,647<br />
International Units 31 32 32<br />
Average Sales/Unit ($000) 3,675 3,500 3,341<br />
Concept Positioning |<br />
Red Lobster is the largest full-service, family-oriented seafood chain. Units are open for lunch and dinner.<br />
The majority of its restaurants are freestanding. In 2002. Red Lobster unveiled its 7,000-sq. ft. “Coastal Home” design. The<br />
new design, which seats 238, features an open kitchen, a two-tiered lobster tank and fish sculptures hanging on the walls. The<br />
focal point of the restaurant is the bar, which is accented with fish-shaped tables and lit sculptures depicting the sea.<br />
Bill Darden opened the first Red Lobster in Lakeland, FL, in 1968. The chain had already grown to 5 units when General Mills<br />
acquired it in 1970. International expansion took the chain into Canada in 1983. Red Lobster, along with Olive Garden, was<br />
spun off from General Mills into Darden Restaurants in 1995. In 1999, the chain started targeting specific markets to<br />
regionalize menus and restaurant designs. Fortune magazine selected Darden Restaurants as one of the world’s “Top 100<br />
Most Admired Companies” in 2001.<br />
<strong>Menu</strong> Positioning |<br />
<strong>Menu</strong>s are changed twice a year to reflect seasonal and regional tastes. Signature seafood items include live Maine lobster<br />
and variety of fresh fish especially crab, shrimp and scallops. Seafood pasta line offers items such as shrimp and lobster<br />
linguine and crab alfredo. Also chicken, steaks and steak and seafood combination platters. All entrees include a salad.<br />
Cheddar Bay biscuits, salads, steamed vegetables, baked or fried potatoes, rice and variety of desserts available as sides.<br />
Full-service bar at most locations. It also offers "Party Platters" of shrimp, crab, appetizers and desserts for carryout during the<br />
holidays on 1-hour notice, priced between $11.99 and $59.99. <strong>Menu</strong> Prices: $4.99–$23. Check Averages: $15.50–$16.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
536
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Darden Restaurants said it acquired three Don Pablo’s restaurant locations and one Hops unit from Avado Brands. The units<br />
will be converted to the Smokey Bones BBQ Sports Bar concept. The Don Pablo’s sites are in Greensboro, NC; Bowie, MD;<br />
and Youngstown, OH. The Hops site is in Columbus, OH. Terms were not revealed. Darden’s other brands are Red Lobster,<br />
Olive Garden and Bahama Breeze. (NRN 3/10/03 p77)<br />
Promotion Plans |<br />
Red Lobster’s Overboard Club is one of the most popular aspects of its Web site. At www.redlobster.com, visitors can register<br />
online for free and receive exclusive offers and discounts via e-mail. They also become eligible for special prizes such as gift<br />
cards or a lobster dinner delivered to their door. The Web site also invites customers to offer their opinions on possible menu<br />
additions. For example, in January, the site described a Buffalo shrimp appetizer and asked visitors for their feedback.<br />
(Restaurants & Institutions)<br />
Ruby Tuesday has retained a high-profile New York-based ad agency—a dramatic departure from its traditional reliance on<br />
word-of-mouth and local marketing. It hired Kaplan Thaler Group to help it capture the business of consumers who have been<br />
looking for less-expensive alternatives to casual-dining brands such as Red Lobster, Outback Steakhouse and Olive Garden,<br />
the company told investors. (RB 4/1/03 p12)<br />
<strong>Menu</strong> Development |<br />
Red Lobster has developed many new offerings for its annual Lobsterfest promotion, but it is also bringing back several dishes<br />
from previous years. Available through April 20, returning favorites include Grilled Salmon with Lobster Mashed Potatoes<br />
($15.75), Lobster Lover’s Dream (broiled rock lobster tail and Maine lobster tail served with lobster and asparagus penne<br />
pasta for $24.50) and Lobster in Paradise (broiled rock lobster tail served with island salsa, Parrot Bay Coconut Shrimp and<br />
pina colada dipping sauce for $19.99). New offerings include: ■ Lobster Pizza—an appetizer pizza with a California-style thin<br />
crust topped with lobster meat, cheese, fresh tomatoes and basil ($6.75) ■ Lobster & Asparagus Penne Pasta—with lobster,<br />
shrimp, fresh asparagus and penne pasta in garlic alfredo sauce ($10.99) ■ Grilled Lobster & Vegetables—two split and grilled<br />
Maine lobster tails served with baked potato and grilled vegetables ($17.99) ■ Filet Mignon & Lobster Scampi—filet mignon,<br />
lobster claw scampi, grilled vegetables and baked potato ($21.99). (Restaurant Business Daily News)<br />
Red Lobster is adding steak to its menu as well as new appetizers, sandwiches and salads. Five combo entrees will feature<br />
steak paired with seafood. They include a mixed grill, bringing together filet mignon with a lobster-chop skewer and grilled<br />
jumbo shrimp; strip or rib-eye steak with broiled rock lobster; filet mignon and jumbo fried shrimp; sirloin steak and grilled<br />
salmon; and sirloin steak with fried shrimp or shrimp scampi. Other menu additions are a half-pound Angus-beef burger;<br />
grilled-salmon salad; beer-battered fish and chips; lobster pizza; apple-walnut chicken salad; grilled honey-mustard chicken<br />
sandwich; and nachos topped with a choice of lobster and shrimp, blackened chicken or petite shrimp. In other menu news,<br />
the chain has pulled fresh swordfish from its 670 restaurants across the country in response to a controversial California<br />
lawsuit over proper labeling of mercury in seafood. While swordfish is not part of Red Lobster’s core menu, its chefs previously<br />
had the option of offering it as a daily fresh-fish selection. (NRN 4/21/03 p4; SBR 4/03 p4)<br />
Red Lobster added steak to its menu along with several other new dishes. The steaks are paired with a choice of five offerings<br />
to create a number of different combo meals. One option is a mixed grill that combines filet mignon with a lobster chop skewer<br />
and grilled jumbo shrimp. Other new items include a half-pound Angus burger, grilled salmon salad, beer-battered fish and<br />
chips, lobster pizza, apple-walnut chicken salad, a grilled honey mustard chicken sandwich and nachos topped with either<br />
lobster and shrimp, blackened chicken or petite shrimp. (Restaurant Business Daily News, NRN Daily NewsFax)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
537
<strong>RISE</strong> COMPANY PROFILE<br />
Bar menus are often designed to save consumers time while offerings operators an opportunity to capture additional sales in<br />
off-peak and crowded hours. Chevys has made its entire menu available at the bar in a move to cut service time and notes<br />
that bar patrons tend to order equally from the appetizer and entrée sections. Proving most popular for bar service are its<br />
Mesquite Grilled Fajitas and the Fresh Mex Sampler, which combines spicy wings, tamales, chicken nachos and quesadillas.<br />
Kimpton Group has also recognized the appeal of bar menus and is now utilizing lounge menus of about 10 items in several of<br />
its newer hotels, rather than offering a more complete restaurant menu. The menus are often themed to a specific concept.<br />
Helix in Washington, DC, features retro-American foods such as Spicy Corn Dogs with Fairground Mustard Sauce, while<br />
Topaz, also in Washington, DC, emphasizes Asian fare such as Pork and Cabbage Spring Rolls with Sweet Chili Sauce and a<br />
Stir Fry of Scallops with Gingered Grits. Elsewhere, the McCormick & Schmick’s in Los Angeles reconfigured its bar menu to<br />
boost Happy Hour sales. It now serves a collection of $1.95 appetizers from 4p.m. to 7 p.m. Offerings are designed to<br />
introduce diners to prime seafood varieties, including Alaska halibut prepared on skewers and served as fish and chips and<br />
Chignik salmon, which has been prepared on skewers and as ceviche. The menu proved so popular, the restaurant ultimately<br />
decided to extend service, offering it again from 9 p.m. to midnight, essentially creating a second Happy Hour period. Other<br />
chains have also gotten into the act of bar service. Examples include: ■ Ultimate Fondue—bread bowl filled with crab meat,<br />
crawfish, shrimp and Cheddar cheese, Red Lobster ■ Blackened Chicken with Avocado Quesadillas, Dave & Buster’s.<br />
(Restaurant Business)<br />
Red Lobster introduced two new appetizers as part of its Dozens of Shrimp promotion. New offerings included Crown of<br />
Shrimp (12 tempura shrimp served with wasabi dipping sauce) and Grilled Shrimp Cocktail (grilled shrimp basted with garlic<br />
sauce and served on thin-sliced tortilla strips). (Nation’s Restaurant News 9/22/03 p20)<br />
Red Lobster’s current Dozens of Shrimp promotion includes new limited-time entrees. Grilled Baby Rack of Shrimp features 12<br />
shrimp grilled on a skewer and brushed with citrus barbecue sauce, while Citrus Shrimp in a Bag consists of 12 shrimp<br />
steamed in a parchment bag with lemon, pepper and herbs. Grilled Salmon & Shrimp Skewers combine a salmon fillet and two<br />
skewers of garlic shrimp. Existing options include Shrimp Scampi and Hand-Breaded Fried Shrimp. The effort allows diners to<br />
order up to four-dozen shrimp, served with a baked potato and salad. Prices range from $9.99–$13.99 for two dozen and from<br />
$17.97–$21.99 for four dozen. Guests can also add a dozen shrimp to any entrée for $3.99. (Nation’s Restaurant News<br />
9/22/03 p20, Restaurant Business <strong>Menu</strong> Strategies Newsletter 9/10/03)<br />
Red Lobster introduced “Seafood Pasta Celebration” at its restaurants systemwide. The promotion features South Beach<br />
Seafood Paella and Mediterranean Seafood Pasta. The South Beach plate includes shrimp, bay scallops, mussels, roasted<br />
vegetables and fish baked in a saffron broth with rice and Mediterranean spices. The Mediterranean Seafood Pasta is a<br />
mixture of penne pasta and various seafood items topped with roasted vegetables and a tomato-herb sauce. (NRN Daily<br />
NewsFax 10/21/03)<br />
Red Lobster debuted three new entrees as part of its Seafood Pasta Celebration. A Perfect Pasta Creations option allows<br />
guests to create their own meal based on penne pasta and a choice of sauces and protein toppings. Choices include Garlic<br />
Alfredo or Mediterranean Tomato-Herb Sauce as well as Grilled Shrimp ($9.99), Fresh Salmon ($10.99) or Rosemary-<br />
Seasoned Chicken ($9.99). Other new dishes are: ■ South Beach Seafood Paella—shrimp, bay scallops, mussels, roasted<br />
vegetables and fresh fish, all baked in a saffron broth with rice and Mediterranean spices ($12.99) ■ Mediterranean Seafood<br />
Pasta—penne pasta, shrimp, bay scallops, mussels, fresh fish and roasted vegetables in Mediterranean Tomato-Herb sauce<br />
($12.99). (Restaurant Business <strong>Menu</strong> Strategies Newsletter 10/22/03)<br />
Red Lobster introduced four new entrees to its menu. Served with steamed vegetables, the entrees are grilled mahi-mahi,<br />
grilled chicken, macaroni and cheese, and snow crab legs. (NRN Daily NewsFax 12/9/03)<br />
Red Lobster introduced a new kids’ menu featuring healthful foods such as grilled and steamed seafood and veggie sides.<br />
Among the more familiar items are Macaroni & Cheese with Steamed Vegetables, Grilled Chicken & Steamed Veggies and<br />
Chicken Fingers & Fries. Seafood selections are: Snow Crab Legs & Steamed Veggies; Grilled Mahi-Mahi & Steamed<br />
Veggies; and Popcorn Shrimp & Fries. Each of the meals comes with a choice of applesauce or fresh carrots and cucumbers<br />
with a ranch dipping sauce and drink. (PRNewswire-FirstCall 12/8/03)<br />
Pizzas are increasingly carrying a broad range of ingredients, creating pies that range from traditional basics to innovative<br />
signatures. At Godfather’s, offerings range from simple Humble Pie with sausage, peppers and onions to the more upscale<br />
Chicken Artichoke pizza with white garlic sauce, artichokes and red onions, which is similar to the designer pizzas popularized<br />
by chef Wolfgang Puck. Bahama Breeze has a Four Tomato Pizza that boasts vine-ripened Roma, yellow pear, grape and<br />
sun-dried tomatoes, and Red Lobster has a thin-crust Lobster pizza topped with basil. Specialty cheeses are also becoming<br />
more common. Dave & Buster’s has a Shiitake Boursin pizza and Napa Valley Grill in Chicago offers a Brie and Duck Confit<br />
pie on a seasonal basis. (Nation’s Restaurant News 12/1/03 p35)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
538
<strong>RISE</strong> COMPANY PROFILE<br />
Seafood is enjoying strong popularity due to its healthful profile. Another advantage is the availability of so many different<br />
varieties, which allows chefs to experiment with a broad range of preparations and applications. At Jasper White’s Summer<br />
Shack restaurants on the East Coast, lobster is served at least six different ways, including steamed in the rough, baked, wokseared,<br />
pan-roasted, wood-grilled and as a lobster roll with lobster salad. Red Lobster notes that consumers are currently<br />
leaning toward simple preparation techniques that allow basic flavors to shine, with grilling particularly popular. Up the Creek,<br />
a chain based in Duluth, GA, allows guests to choose the technique for several offerings. Mahi Mahi and other seafood can be<br />
ordered blackened, grilled or fried. An Asian-style preparation differentiates Koi in Los Angeles. Though the restaurant<br />
specializes in sushi, its Asian-style option involves marinating seafood in sake, mirin and soy sauce, then pan-roasting.<br />
(Restaurant Hospitality 11/03 p37)<br />
International Activities |<br />
Global flavors are increasingly being applied to chicken to add interest to a favorite protein. Wappo Bar Bistro in Calistoga, CA,<br />
features a range of diverse ethnic influences in its chicken dishes. Asian is reflected in marinated chicken served with a Thai<br />
noodle and green papaya salad, Mediterranean is expressed with Greek skewered marinated chicken that is marinated in<br />
yogurt, lemon and herbs, then served with orzo and Greek salad. It even features an Indian dish of tandoori chicken with lentil<br />
and caramelized onion pilaf, tomato raita, sautéed spinach and warm flatbread. Leeann Chin, a Bloomington, MN-based chain,<br />
offers several Asian chicken offerings on its menu. The meat is featured in stir-fries or bathed in spicy Indonesian coconutcurry<br />
sauce or peanut sauce with Thai chilies. Other examples with international accents include: ■ Caribbean: Seasoned<br />
Chicken Salad—with black beans, peppers, mango salsa, peanuts and tortilla straws, Houlihan’s ■ Cuban: Chicken Bistro<br />
Cubano—with aromatic spices, sweet potatoes and Dijon glaze, Chez Henri, Boston ■ Mediterranean: Crispy Lemon Flattened<br />
Chicken—with za’atar (sesame, thyme, marjoram and sumac), Oleana, Boston ■ Mexican: Chicken Breast Grilled with<br />
Chipotle Barbecue Seasoning—topped with tequila lime sauce, fresh pico de gallo and sour cream, Red Lobster. (Restaurants<br />
& Institutions)<br />
Technology |<br />
Red Lobster’s new restaurant in Hollywood, FL, will test market the chain’s new “Guest Navigation System,” which uses a<br />
computer to calculate estimated wait times based on how long similar parties were kept waiting in similar circumstances. It will<br />
be one of only two of Red Lobster restaurants to test the program. A 42-in. plasma TV screen will keep guests posted on how<br />
many other parties of the same size are ahead of them and also will offer trivia games and promotions for featured menu<br />
items. (FIR 6/23/03 p8)<br />
Personnel |<br />
Joe Lee, President<br />
Barry Moulett, Director of Purchasing<br />
Kim Lopdrup, Vice President of Marketing<br />
Chris Sullivan, Chief Executive Officer<br />
Logan’s Roadhouse hired Steve Anderson as senior director of food and beverage. Previously, Anderson was menu<br />
development chief for Red Lobster. (RestaurantBiz.com 10/10/03)<br />
News & Other |<br />
Darden Restaurants bought five Rio Bravo restaurants from Chevys Inc. It plans to convert three of the sites—located in<br />
Grand Rapids, MI; Springfield, MO; and Morrow, GA—into Smokey Bones Barbeque restaurants. A unit in Strongsville, OH,<br />
will become a Red Lobster and one in Dunwoody, GA, will house an Olive Garden. Over the next 12 months, Darden said it<br />
plans to invest more than $2.5 million for renovations in each location and it will hire 100 employees for each restaurant.<br />
(NDNF 8/1/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
539
<strong>RISE</strong> COMPANY PROFILE<br />
Red Lobster was slated to open its first Manhattan outlet in July in Times Square. The three-story, 9,000-sq.ft. restaurant seats<br />
425 and parent Darden Restaurants expects it to be one of its most popular worldwide. The unit is the third New York City<br />
restaurant to open this year, with Darden opening an outlet in Queens in February and Brooklyn in March. Red Lobster now<br />
has more than 670 stores. Separately, Red Lobster broke an ad campaign under the theme “Share the Love,” which presents<br />
the chain as a place where consumers “connect” with each other as they dine. The first spots support the “World of Crab”<br />
promotion, which features three new crab dishes. Red Lobster also has redesigned its menu, billboards and Web site to reflect<br />
the new positioning. (NDNF 7/22/03; NRN 7/21/03 p14 & 8/4/03 p102)<br />
Red Lobster launched a “Dozens of Shrimp” promotion, offering Grilled Baby Rack of Shrimp and Citrus Shrimp in a Bag for a<br />
limited time. Also part of the promotion are two new appetizers and a new Grilled Salmon & Shrimp Skewers entree. In<br />
separate news, Red Lobster has been sued by chef-owner Jasper White over its new advertising slogan. White, owner of<br />
Jasper White’s Summer Shack seafood restaurants in Boston and Connecticut, is suing Red Lobster and parent Darden<br />
Restaurants for trademark infringement. White claims that the seafood chain’s “Share the Love” marketing tag line is based on<br />
his own trademarked “Food is Love” slogan. (NDNF 9/9/03; NRN 8/25/03 p1)<br />
Red Lobster reported same-store sales increased 1–2% for the five-week period ended September 28. (NRN Daily NewsFax<br />
10/8/03)<br />
Darden Restaurants said Enda Morris resigned as president of Red Lobster. She had been promoted to the position in April<br />
2002. Darden president and chief operating officer Dick Rivera assumed the post. (NDNF 9/26/03)<br />
Red Lobster for the four weeks ended October 26, reported same-store sales fell 4%. (NRN Daily NewsFax 11/5/03)<br />
Red Lobster president Edna Morris has resigned. Her departure follows the failed “World of Crab” promotion and lower-than<br />
expected first-quarter sales of $633.9 million. (RB 10/15/03 p8; SBR 10/03 p4)<br />
Red Lobster hired Kim A. Lopdrup as its new executive vice president of marketing. He served for one year as executive vice<br />
president and chief operating officer at Burger King and previously spent 16 years with Allied Domecq QSR. (NDNF 11/25/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
540
Red Robin<br />
Headquarters<br />
5575 DTC Pkwy. Suite 110, Greenwood Village, Colorado 80111 USA<br />
Tel: (303) 846 6000 Fax: (303) 846 6067<br />
www.redrobin.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 464,635 412,919 368,620<br />
Company-owned ($000) 266,489 212,329 179,772<br />
Franchised ($000) 198,146 200,590 188,848<br />
U.S. Number of Units 168 150 132<br />
Company-owned 91 75 61<br />
Franchised 77 75 71<br />
International Sales ($000) 25,120 29,178 31,189<br />
International Units 21 21 21<br />
Average Sales/Unit ($000) 2,766 2,753 2,947<br />
Concept Positioning |<br />
Red Robin Gourmet Burgers, Inc. owns, operates and franchises restaurants under the trade name Red Robin America’s<br />
Gourmet Burgers and Spirits. Units are located primarily in suburban malls and range in size from 6,000–10,000 sq. ft. Eating<br />
areas and lounges are generally found on separate levels. Most units also feature an outdoor patio. The decor is casually<br />
sophisticated, colorful and comfortable.<br />
The business began in 1969 when Gerald Kingen purchased a small Seattle tavern near the University of Washington and<br />
renamed it Red Robin. In 1996, Mike Snyder, then a franchisee, became president and increased revenues and profits for Red<br />
Robin. A recapitalization was completed in 2000, with Red Robin acquiring The Snyder Group Company, Snyder's 14-unit<br />
franchise company.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: gourmet hamburgers and chicken sandwiches, creative cocktails and mocktails (non-alcoholic beverages).<br />
All-day menu features pastas such as Thai Chicken or Linguine with Pesto, salads, ribs, steaks, fish and chips and appetizers<br />
ranging from buzzard wings to cheese sticks and just-in quesadilla as well as desserts. Vegetarian options include Amazing<br />
Meatless Burger, Pasta Resca and Bamboo Steamer. Alcoholic beverages served; account for 25% of sales. <strong>Menu</strong> Prices:<br />
$4.29–$13.99. Check Average: $10.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
541
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Red Robin is featuring Carnitas Fajitas as a limited-time offer through November 2. The platter of Mexican–style shredded<br />
pork is served with the traditional fajita garnishes of sautéed peppers and onions, salsa, guacamole, sour cream and flour<br />
tortillas. (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 8/20/03)<br />
Red Robin introduced a Sirloin Steak Burger as a limited-time offer to lure families to the chain during the busy back-to-school<br />
period. Priced at $8.99, the sandwich features grilled sirloin steak slices topped with provolone and Parmesan cheeses,<br />
peppercorn spread, tomatoes, sautéed sweet onions and roasted red peppers. (Restaurant Business <strong>Menu</strong> Strategies<br />
Newsletter, 8/20/03)<br />
Burgers are showcasing inventive ingredients as operators work to develop enticing options that appeal to consumers looking<br />
to indulge even as obesity becomes an increasingly important issue. While salads and other better-for-you fare seem to be<br />
gaining menu mentions lately, hamburgers remain the most-ordered option at restaurants. Interesting toppings, spices and<br />
sauces are being utilized to add flavor and interest. At Red Robin, a 5 Alarm Burger is smothered in Pepper Jack cheese,<br />
jalapenos, salsa, tomatoes, lettuce and chipotle mayonnaise. Equally indulgent variations include: ■ Ranch Burger—halfpound<br />
burger with spicy ranch dressing, Cheddar cheese, bacon and grilled red onions, Ground Round ■ Hickory Burger—<br />
half-pound Choice sirloin patty topped with Cheddar cheese, hickory-smoked bacon and stout barbecue sauce, Rock Bottom<br />
Restaurant & Brewery ■ California Burger—half-pound Choice beef patty topped with Jack cheese, bacon and avocado, Stuart<br />
Anderson’s Black Angus/Cattle Company ■ Smoke House Burger—half-pound Choice beef patty with Jack and Cheddar<br />
cheeses, sautéed mushrooms, onions and barbecue sauce, Texas Roadhouse. (Restaurants & Institutions 9/1/03 p31)<br />
Red Robin added two new burgers and a sandwich to its menu after successful tests. The updated menu is said to feature<br />
more of what the chain says are consumer hot buttons: grilled items, comfort foods and Italian flavors. A Grilled Bistro Burger<br />
($8.99) features a marinated, grilled salmon fillet served with lettuce, tomato and bistro sauce, which is described as a mild<br />
remoulade. A Parmigiano Chicken Burger ($8.49) is inspired by the chain’s popular Crispy Chicken Burger and includes a<br />
lightly breaded chicken breast, provolone and Parmesan cheeses, marinara sauce, marinated and grilled tomatoes, shredded<br />
romaine lettuce and garlic mayonnaise on an onion bun. It is also available as an entrée, sliced and served over penne pasta<br />
with sauce and mozzarella for $8.99. Smothered Pot Roast on Texas Toast ($9.99) is served open-faced on thick grilled bread<br />
with steak fries and brown gravy. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 10/29/03)<br />
Franchise Activity |<br />
Red Robin signed two new franchise deals to help broaden its presence in the northeastern United States. Franchisees UBA<br />
Enterprises and Colby Restaurant Group will both open five units, with the first units opening in New Jersey in January 2004<br />
and Delaware in February 2004. (NRN Daily NewsFax 12/24/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
542
Technology |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Fishbowl, an e-mail marketing services firm, assists its clients in sending more than 2 million e-mail messages a month on<br />
behalf of about 60 restaurant chains, including Buca di Beppo, Johnny Carino’s Country Italian, Maggiano’s Little Italy and<br />
Texas Roadhouse. The company also specializes in database management; creation of e-mail content; survey planning<br />
strategies; and updates of e-mail materials to support quarterly marketing goals. Fishbowl clients pay a $7,500 set-up fee and<br />
from $100–$300 per restaurant per month, depending on the database size. Fishbowl client Red Robin Gourmet Burgers is<br />
rolling out a marketing program using e-mail to build brand awareness and guest loyalty. The 198-unit chain decided on this<br />
strategy after successfully testing a guest loyalty program created by Fishbowl. In the eight-restaurant pilot, the company said<br />
it received measurable results that e-mail marketing works. (NRN 5/19/03 p174)<br />
Personnel |<br />
Michael Snyder, Chairman<br />
Howard McCloskey, Chief Financial Officer<br />
Bob Merullo, Vice President of Operations<br />
Eric Houseman, Vice President of Operations<br />
Ray Masters, Vice President of Purchasing<br />
Dwayne Chambers, Vice President of Marketing<br />
Red Robin Gourmet Burgers named Dwayne Chambers vice president of marketing. Previously, Chambers held the same<br />
post at Sonic Drive-In. (Nation’s Restaurant News 9/15/03 p14)<br />
News & Other |<br />
Red Robin Gourmet Burgers Inc. raised its third quarter sales and earnings forecast from 23 cents to 24 cents a share on<br />
revenues of $77 million to $78 million for the month ended October 5. The projection assumed an expected same-store sales<br />
increase from 4.5% to 5.5%. (NRN Daily NewsFax 9/16/03)<br />
Red Robin Gourmet Burgers Inc. for the quarter ended October 5, reported revenues increased 23% to $79.3 million<br />
compared to the same quarter last year. Systemwide sales increased 18% to $135.1 million, and same-store sales at<br />
company-owned units increased 6%. (NRN Daily NewsFax 11/5/03)<br />
Red Robin Gourmet Burgers for the quarter ended October 5, reported revenues increased 22.8% to $79.3 million compared<br />
to the same quarter last year. Same-store sales increased 6%. (RestaurantBiz.com 11/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
543
Restaurants Unlimited<br />
Headquarters<br />
1818 N. Northlake Way, Seattle, Washington 98103 USA<br />
Tel: (206) 634 0550 Fax: (206) 632 3533<br />
www.alcopeland.com, www.r-u-i.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Kincaid's Fish, Chop & Steakhouse<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 141,000 142,000 149,000<br />
Company-owned ($000) 141,000 142,000 149,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 30 31 32<br />
Company-owned 30 31 32<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,700 4,675 4,656<br />
Concept Positioning |<br />
Restaurants Unlimited (RUI) operates two small dinner-house chains: Kincaid’s Fish, Chop & Steakhouse and Palomino<br />
Restaurant Rotisseria & Bar. It also has a handful of unique restaurants including Horatio's, Palisade, Scott's, Clinkerdagger,<br />
Stanley & Seafort’s, Maggie Bluff’s, Skates on the Bay, Ryan's Grill, Simon & Seafort's and Cutter's. Most are targeted toward<br />
middle- to upper-income consumers between the ages of 25 and 54. Most are open for lunch and dinner. Units average<br />
7,000–11,500 sq. ft. and seat 250–370 patrons and typically have an extensive bar.<br />
Currently, growth has been slowed. Its expansion efforts are concentrated with its Palomino and Kincaid’s brands.<br />
Kincaid’s are reminiscent of great American dinner houses and offer fresh fish, seafood and Certified Nebraska beef. Each unit<br />
has a traditional design complete with deep-toned woods, high ceilings and hand-painted local art.<br />
Palomino units feature exhibition kitchens, wood-fired grills, ovens and rotisseries. Decor highlights include marble, high-gloss<br />
lacquered woods, glass sculpture light fixtures, and indoor palm and yucca trees. The menu focuses on regional American<br />
cuisine that is based on the simple rustic dishes of Europe.<br />
Rich Komen started Restaurants Unlimited in 1969 with a chain of Old English-themed restaurants named Horatio's and<br />
Clinkerdagger. In November 1989, the company opened its first Palomino.<br />
The company also founded the Cinnabon chain as well as the concept. Both have since been sold.<br />
Current management includes Steven Stoddard, president and chief executive and Roger Stilson, vice president of marketing.<br />
<strong>Menu</strong> Positioning |<br />
Concepts vary and have menus that permit versatile use. Palomino’s typical entrees include wood-fired pizzas, such as<br />
artichoke, and pancetta and morbier cheese, and rotisserie-cooked pork loin. <strong>Menu</strong> Prices: to $17.95. Check Averages: $14–<br />
$25<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
544
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Nonalcoholic drinks are important menu options, both for kids and other guests that do not drink. Nonalcoholic beverages<br />
based on trendy cocktails are offered at Palomino and Kincaid’s, two chains owned by Restaurants Unlimited. A Wild<br />
Raspberry Mojito blends fresh lime sour, raspberry puree and a splash of soda with a garnish of fresh raspberries and fresh<br />
mint. The Crisp Green Apple Un-Tini features fresh lemon sour, green apple syrup and a splash of soda. It is served in a<br />
martini glass with a fresh apple slice garnish. Kids are targeted with adult-inspired beverages at Chicago’s Bistro 110. Its<br />
Kiddie Concoctions and Little Libations menu includes a White Peach Fizz cocktail made with white peach puree, freshsqueezed<br />
orange juice and Sprite over crushed ice. It is served in a brandy snifter and garnished with a cherry. (Restaurant<br />
Business 9/1/03 p70)<br />
Personnel |<br />
James Welch, Chairman<br />
Steve Stoddard, Chief Executive Officer<br />
Robert Nowlin, Chief Financial Officer<br />
David Johnson, Vice President of Purchasing<br />
Roger Stilson, Vice President of Marketing<br />
Don Adams, <strong>Menu</strong> Development/R&D<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
545
Rio Bravo Fresh Mex<br />
Headquarters<br />
2000 Powell St., Emeryville, California 94608 USA<br />
Tel: (510) 768 1400 Fax: (510) 594 1135<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 87,000 84,500 93,221<br />
Company-owned ($000) 82,000 77,500 85,999<br />
Franchised ($000) 5,000 7,000 7,222<br />
U.S. Number of Units 33 30 36<br />
Company-owned 31 28 34<br />
Franchised 2 2 2<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,500 2,450 2,529<br />
Concept Positioning |<br />
Rio Bravo Fresh Mex is a casual dining Mexican concept that features foods prepared fresh each day. Its colorful and<br />
energetic decor, created through the use of exposed brick, barn wood, and Mexican tile and stucco, adds to its broad-based<br />
appeal.<br />
Units are largely freestanding, ranging in size from 6,500–10,000 sq. ft. and seat 225–450. Most units also feature a patio area<br />
for additional seating. A new, smaller prototype is approximately 5,600 sq. ft. with seating for about 210 indoors. The optional<br />
patio area seats an additional 36.<br />
Innovative Restaurant Concepts, its original parent, dates back to 1984. All of Innovative's operations were acquired by<br />
Applebee's International in early 1995 in a stock and debt assumption deal. Then in early 1999, Applebee’s announced sale of<br />
the Rio Bravo chain to Chevys, Inc. The deal was completed in April. The company is currently converting the units to a<br />
Chevys Fresh-Mex-based model.<br />
<strong>Menu</strong> Positioning |<br />
Fresh-Mex favorites prepared from scratch daily. Tortillas—prepared in view of customers—and fresh salsa made and served<br />
daily. Also, menus include traditional Mexican items such as burritos, enchiladas, tamales and tacos, sizzling fajita platters<br />
such as shrimp, chicken, salmon, beef and baby back ribs, salads and desserts. Features variety of signature margaritas as<br />
well as domestic and imported beers. <strong>Menu</strong> Prices: $4.75–$12.99. Check Averages: $12.50<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
546
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Darden Restaurants bought five Rio Bravo restaurants from Chevys Inc. It plans to convert three of the sites—located in<br />
Grand Rapids, MI; Springfield, MO; and Morrow, GA—into Smokey Bones Barbeque restaurants. A unit in Strongsville, OH,<br />
will become a Red Lobster and one in Dunwoody, GA, will house an Olive Garden. Over the next 12 months, Darden said it<br />
plans to invest more than $2.5 million for renovations in each location and it will hire 100 employees for each restaurant.<br />
(NDNF 8/1/03)<br />
Chevys Inc. filed for Chapter 11 protection after Consolidated Restaurant Operations suspended its planned acquisition of the<br />
Chevys and Fuzio chains. It cited California’s pending mandate for employer-paid health insurance and the state’s political and<br />
economic climate as reasons for the switch. The insurance mandate would begin in 2006 and include coverage for part-time<br />
workers. About 70 of Chevys and Fuzio Universal Pasta’s 129 units are in California. Consolidated also cited a proposition in<br />
San Francisco that would raise that city’s minimum wages. Chevys Inc. also owns Rio Bravo, which has been performing<br />
poorly, while Chevys and Fuzio produce strong results, according to the company. (NDNF 10/14/03 & 9/29/03)*See related<br />
brief in Noteworthy section.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
547
Roadhouse Grill<br />
Headquarters<br />
2703-A Gateway Dr., Pompano Beach, Florida 33069 USA<br />
Tel: (954) 957 2600 Fax: (954) 969 5432<br />
www.roadhousegrill.com<br />
Ownership: Public<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 149,000 163,500 174,000<br />
Company-owned ($000) 145,000 158,000 168,000<br />
Franchised ($000) 4,000 5,500 6,000<br />
U.S. Number of Units 71 75 86<br />
Company-owned 69 72 83<br />
Franchised 2 3 3<br />
International Sales ($000) 9,000 6,500 4,000<br />
International Units 6 4 4<br />
Average Sales/Unit ($000) 1,975 2,000 2,024<br />
Concept Positioning |<br />
Roadhouse Grill, a full-service restaurant chain, is a cross between an old-fashioned steakhouse and roadhouse-style saloon.<br />
Interiors have a large, open and airy complete with exhibition kitchens, exposed ceilings and brick and clapboard cedar walls<br />
decorated with colorful, hand-painted murals and neon. Tables have metal pails filled with peanuts for munching and patrons<br />
are encouraged to toss shells onto the floor. Jukeboxes play popular music. Exteriors are rough-sawed siding with a tin roof<br />
and wood plank porch. Its current prototype is 6,800 sq. ft. with seating for 260 persons.<br />
Roadhouse Grill was founded in 1992 by John D. Toole, III. In early 1995, Berjaya Group (Cayman) Ltd. acquired a 51.9%<br />
stake in the company. It completed its initial IPO in November 1996. In 2002, Roadhouse filed for Chapter 11 bankruptcy and<br />
is currently working to emerge from bankruptcy. Expansion will primarily be through development of company-owned units;<br />
international development will primarily focus on franchise agreements. A joint venture with Cremonini Group, a leading<br />
publicly traded Italian company specializing in the food-service industry in Europe, led to the opening of a unit in Milan, Italy in<br />
2001; more units have been added in Italy since. Roadhouse also has agreements with several international franchisees in<br />
countries such as Brazil, China and Malaysia.<br />
<strong>Menu</strong> Positioning |<br />
Signature Items: aged steaks, prime rib, beef ribs chicken and seafood grilled to order. Over sixty menu items, including 13<br />
cuts of steak. Appetizers, sandwiches, salads and pasta also menued. Each entrée served with salad, choice of baked potato,<br />
baked sweet potato, fries or rice pilaf. <strong>Menu</strong> Prices: $4.59-$17.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
548
Personnel |<br />
Vincent Tan, Chairman<br />
Ayman Sabi, Chief Executive Officer<br />
Michael Brant, Chief Financial Officer<br />
Mark Rogers, Vice President of Operations<br />
David Foulke, Director of Purchasing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
549
Rock Bottom Brewery<br />
Headquarters<br />
248 Centennial Pkwy., Louisville, Colorado 80027 USA<br />
Tel: (303) 664 4000 Fax: (303) 664 4199<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 132,127 125,259 206,800<br />
Company-owned ($000) 132,127 125,259 206,800<br />
Franchised ($000) - - -<br />
U.S. Number of Units 39 37 82<br />
Company-owned 39 37 80<br />
Franchised - - 2<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,368 3,370 2,584<br />
Concept Positioning |<br />
The Rock Bottom Restaurant & Brewery restaurant chain features its own microbrewery as an integral part of the concept.<br />
Units are open seven days a week from 11:00 a.m. into the late night and appeal to a broad-based, but young, clientele.<br />
The units, located in high traffic metropolitan areas, are largely freestanding. They range in size from 7,400–11,500 sq. ft.,<br />
seating between 200–375 patrons. Decor is assembled around stainless steel brewing equipment. Dining rooms feature partial<br />
or complete exhibition-style kitchens, wood-finished interiors, high ceilings and warm lighting to complement the brewing area.<br />
Nearly all units have pool tables, outdoor seating and live music. Televisions are set throughout the bar area for customers to<br />
watch sports and other special events.<br />
Rock Bottom also retails clothing and other merchandise with its logo or custom-brewed beer names. The moderately priced,<br />
beer-based menu features a medley of items ranging from Brown Ale Chicken and Tenderloin with Roasted Garlic to a variety<br />
of salads, homemade beer bread and Asiago cheese dip.<br />
In addition, parent Rock Bottom also operates three other concepts: ChopHouse & Brewery, with units in Denver, Cleveland<br />
and Washington, DC; Old Chicago, with 50 locations nationwide; and Sing Sing, a piano bar operation that features two<br />
pianists/comedians dueling it out to see who can play the most audience requests the fastest. The three Sing Sing units are<br />
located in Denver and Irving and San Diego, CA. Beer brewed at Rock Bottom and ChopHouse are, along with other light fare,<br />
served in the units.<br />
Rock Bottom Restaurants, Inc. was founded in 1976 by Frank B. Day. It was incorporated in 1994 and had its initial IPO that<br />
same year. In late 1999, management, led by Day, took the company private. Day continues to serve as its chairman. Ned<br />
Lidvall was named president and chief executive officer in September, 2001.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
550
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
More than 40 bistro-style items; entrees range from Brown Ale Chicken and Alder Smoked Fish and Chips to Tenderloin with<br />
Roasted Garlic. Also menus sandwiches, salads and pastas. Full liquor service available, which accounts for 38.6% of sales;<br />
own micro-brewed beers account for 55.7% of alcoholic beverage sales. <strong>Menu</strong> Prices: $5.95–$18.95. Entree prices: $7.95–<br />
$18.95, most below $10. Check Averages: $13–$31<br />
<strong>Menu</strong> Development |<br />
Rock Bottom Brewery introduced a new menu in November that incorporates beer in many of its offerings. Examples include<br />
Brewery Spoon Bread, Brewery Jambalaya and Big Al’s Chili. Other dishes are contemporary versions of popular comfort<br />
foods such as Open-Face Roast Turkey Sandwich and Pub Tenderloin Tips. (Restaurant Business)<br />
Asian noodle bowls are appearing on a wide range of menus. The bowls feature several different components in one dish,<br />
combining protein, sauce, starch and vegetables. As an added bonus, preparation tends to be relatively fast and easy. As an<br />
ever-exp anding number of chefs experiment with bowls, traditional Asian operators such as Hibachi-San are looking to make<br />
their own bowl offerings more interesting by focusing on authentic Asian flavors. The chain’s most popular dish is<br />
chicken/teriyaki bowls served with steamed broccoli, cabbage, carrots, zucchini and fresh-grilled chicken, all coated in teriyaki<br />
sauce. Other offerings range from shrimp tempura to Hawaiian chicken and vegetarian. The chain is currently looking to<br />
develop more traditional Asian-flavored bowls such as sukiyaki to enhance its authentic image; it is also developing dishes<br />
with a Japanese curry sauce that is a bit milder than Indian curry. Even concepts not specifically devoted to Asian cuisine are<br />
experimenting with bowls. Legal Sea Foods recently supplemented its seafood-focused menu with a Soba Noodle Vegetable<br />
Broth. The blend of whole vegetables, vegetable broth, soba noodles, ginger, spices and fresh herbs is receiving an<br />
enthusiastic response from more adventurous diners. Other examples of non-Asian chains launching Asian-inspired bowls<br />
include: ■ Pacific Noodle Bowl—shrimp, scallops and skinny noodles tossed with whole-roasted garlic and fresh watercress in<br />
a light lemon-butter sauce, Bennigan’s ■ Rice Noodles Tossed in Tamarind Sauce—with green onions, garlic, chilies, tofu, egg<br />
and crushed peanuts; garnished with shrimp or chicken, The Cheesecake Factory ■ Hula Bowl—greens with chargrilled<br />
chicken breast, pineapple, Mandarin oranges, rice noodles, carrots and tomatoes, Max & Erma’s ■ Bangkok Chicken Bowl—<br />
seasoned chicken tossed with quick-seared fresh vegetables and udon noodles in garlic-soy-ginger sauce, Rock Bottom<br />
Brewery. (Chef)<br />
Side dishes on chain menus are becoming more interesting with the addition of ethnic ingredients, unique flavorings that make<br />
vegetables more appealing and additions that create more tempting potato applications. A number of chains have developed<br />
side dishes that further reinforce their ethnic positioning. Bahama Breeze offers Caribbean-inspired options such as yucca<br />
fries and creamy spinach callaloo, while Chevys focuses on Mexican complements such as sweet corn cakes. Buca<br />
supplements its Italian entrees with sides such as escarole sautéed with olive oil and garlic and P.F. Chang’s also focuses on<br />
garlic, to give an Asian accent to its garlic snap peas. Black beans have enjoyed increased consumer acceptance given their<br />
usage in side dishes at a number of diverse chains. Max & Erma’s has black bean salsa, Houston’s combines black beans<br />
with brown rice and Bennigan’s offers corn and black beans alongside more Irish-oriented sides such as Rice O’Riley and<br />
Bailey’s broccoli. Vegetables have also become more tempting as they are often zipped up with interesting flavors as side<br />
dishes. Claim Jumper offers garlic Parmesan zucchini spears, while Legal Sea Foods menus asparagus with cardamom<br />
butter. Potatoes have also been the subject of numerous innovations, despite the fact that they already have broad consumer<br />
appeal. Mashed potatoes are now available in flavors such as Serrano-fennel at El Torito Grill, garlic red-skinned at 99<br />
Restaurants, chili mashed at Don Pablo’s and white Cheddar at Rock Bottom Brewery. (Nation’s Restaurant News)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
551
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
Burgers are showcasing inventive ingredients as operators work to develop enticing options that appeal to consumers looking<br />
to indulge even as obesity becomes an increasingly important issue. While salads and other better-for-you fare seem to be<br />
gaining menu mentions lately, hamburgers remain the most-ordered option at restaurants. Interesting toppings, spices and<br />
sauces are being utilized to add flavor and interest. At Red Robin, a 5 Alarm Burger is smothered in Pepper Jack cheese,<br />
jalapenos, salsa, tomatoes, lettuce and chipotle mayonnaise. Equally indulgent variations include: ■ Ranch Burger—halfpound<br />
burger with spicy ranch dressing, Cheddar cheese, bacon and grilled red onions, Ground Round ■ Hickory Burger—<br />
half-pound Choice sirloin patty topped with Cheddar cheese, hickory-smoked bacon and stout barbecue sauce, Rock Bottom<br />
Restaurant & Brewery ■ California Burger—half-pound Choice beef patty topped with Jack cheese, bacon and avocado, Stuart<br />
Anderson’s Black Angus/Cattle Company ■ Smoke House Burger—half-pound Choice beef patty with Jack and Cheddar<br />
cheeses, sautéed mushrooms, onions and barbecue sauce, Texas Roadhouse. (Restaurants & Institutions 9/1/03 p31)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
552
Rockfish Seafood Grill<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
www.rockfishseafood.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 45,000 33,000 58,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 45,000 33,000 58,000<br />
U.S. Number of Units 16 14 13<br />
Company-owned - - -<br />
Franchised 16 14 13<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,000 - -<br />
Concept Positioning |<br />
Rockfish Seafood Grill offers high-quality seafood from the East, West and Gulf coasts at reasonable prices in a full-service,<br />
highly engaging setting.<br />
Units average 1,800–2,600 sq. ft. and feature a casual dinnerhouse environment appealing to families, as well as singles,<br />
couples and other groups. Decor is reminiscent of a Northwest fly-fishing camp and features such elements as piney wood<br />
tables and booths, river rock fireplaces, a jukebox and peanut shells on the floors. An open kitchen allows guests to watch<br />
their meals being created.<br />
All locations feature full-service bars, and many have patio seating. Besides Rockfish's signature seafood entrees, the chain<br />
also boasts "blackboard specials," which change daily.<br />
Rockfish Seafood is an evolution of See-Worthy Restaurants’ Shells Oyster Bar & Grill. In July 2001, Brinker International, Inc.<br />
acquired a 40% interest in Rockfish. Under the agreement, Brinker is responsible for developing the chain. Brinker is the<br />
parent company of such concepts as Chili's, Romano's Macaroni Grill, On the Border Mexican Grill, Cozymel's, Maggiano's,<br />
Corner Bakery Café and Big Bowl Asian Kitchen.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item: Seafood. Popular dishes include the "Blackboard Specials" and other seafood entrees, such as salmon,<br />
shrimp pasta and surf n' turf. Non-seafood entrees are also menued, as are sandwiches, po' boys and combination platters,<br />
which come with grilled or blackened fish, vegetables and rice. Appetizers, sides and kids menu also available. Full liquor<br />
service available, accounting for some 15% of revenues. <strong>Menu</strong> Prices: $5.53–$13.42. Check Average: $14.32.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
553
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Rockfish Seafood Grill was to be expanded by Brinker International with six to eight joint-venture franchised outlets by the<br />
close of fiscal 2003 at the end of June. Its unit-count is at 20. Brinker made a minority investment of some 40% in the brand in<br />
July 2001 and has indicated that it may increase its equity investment depending on the concept’s performance. (Nation’s<br />
Restaurant News)<br />
News & Other |<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
554
Romano's Macaroni Grill<br />
Headquarters<br />
6820 LBJ Freeway, Dallas, Texas 75240 USA<br />
Tel: (972) 980 9917 Fax: (972) 770 9593<br />
Ownership: Public<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 584,257 533,838 486,013<br />
Company-owned ($000) 584,257 533,838 486,013<br />
Franchised ($000) - - -<br />
U.S. Number of Units 188 166 151<br />
Company-owned 188 166 151<br />
Franchised - - -<br />
International Sales ($000) 15,776 16,795 9,405<br />
International Units 6 6 6<br />
Average Sales/Unit ($000) 3,300 3,350 3,218<br />
Concept Positioning |<br />
Romano's Macaroni Grill, a casual Italian concept, is one of Brinker International's multi-unit operations. It has the ambience of<br />
an Italian trattoria and features stone arches, huge vases of fresh flowers and opera-singing servers as well as an exhibition<br />
cooking area. Generally, freestanding units measure 6,800–7,600 sq. ft. and seat 250–275 persons.<br />
<strong>Menu</strong> items are both exotic and familiar, representative of the concept's unique mix of upscale and down scale elements. To<br />
reflect the seasons, its core menu is changed four times a year. Stores serve lighter fare in summer months and winter<br />
offerings are heartier and more highly seasoned. A children’s menu is also available. In addition, Romano’s offers delivery<br />
service through the Home Delivery Network and a To Go service, where servers deliver orders to customers who are in their<br />
cars.<br />
Founded by Phil Romano, the developer of the Fuddruckers concept, the first unit opened in the late '80s in San Antonio, TX.<br />
In November 1989, Brinker International acquired the operation from Romano for 152,000 shares of stock (valued at some<br />
$4.5 million). Romano has maintained a tie to Brinker since then and has worked on developing additional concepts with<br />
Brinker.<br />
Current management includes John C. Miller, president and Michael Moser, chief operating officer<br />
<strong>Menu</strong> Positioning |<br />
Italian-based menu that includes pizza, pasta entree, seafood, steak, chicken and specialties such as grilled quail. Features<br />
big portions at low prices. Signature dishes include Scaloppine di Pollo (chicken breast, mushrooms, artichokes, capers and<br />
smoke proscuitto in lemon butter with pasta); Gamberetti e Pinoli (shrimp, mushrooms, pinenuts, spinach and lemon bitter with<br />
pasta) and Saltimbocca di vitello (veal with smoked proscuitto and spinach with pasta). Full liquor service available, accounting<br />
for approximately 12% of sales. <strong>Menu</strong> Prices: $5.99–$16.99. Check Average: $13.84.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
555
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Romano’s Macaroni Grill is currently promoting Dessert Ravioli. Sweet pastry dough is stuffed with crumbled brand-name<br />
candy bars and chocolate sauce, then deep-fried and served with vanilla ice cream and caramel sauce. (Restaurant Business<br />
Daily News)<br />
Romano’s Macaroni Grill added a wine flight to its beverage menu. Three small portions of different wines are served in a<br />
special carrier along with an informative coaster. It is priced at $7.50. Romano’s, with nearly 190 casual-dining outlets, is a<br />
subsidiary of Brinker International. (NDNF 4/7/03)<br />
Romano’s Macaroni Grill is promoting a new Grilled Tenderloin salad as part of an ongoing effort to appeal to mainstream<br />
casual-dining customers. Priced at $12.49, it features grilled and seasoned beef tenderloin over baby arugula, spinach and<br />
radicchio salad. The blend is tossed with creamy Italian dressing and then topped with bacon, crumbled blue cheese and a<br />
drizzle of balsamic honey glaze. Other new promotional dishes include Pork Chops Emiliana ($13.99) and Shrimp Diavolo<br />
($11.99). The pork chops feature grilled center-cut pork chops topped with smoked mozzarella, fresh sage, and porcini demi<br />
glace and are served with garlic mashed potatoes and vegetables. The shrimp offering is sautéed shrimp, garlic, fresh basil<br />
and linguine in a spicy tomato sauce. The salad is currently considered a feature item but will likely be added to the menu at<br />
some point in the future. The other two items are likely to be limited-time offerings available through mid-May. (Restaurant<br />
Business <strong>Menu</strong> Strategies Newsletter)<br />
Romano’s Macaroni Grill is promoting a new Grilled Tenderloin salad as part of an ongoing effort to appeal to mainstream<br />
casual-dining customers. Priced at $12.49, it features grilled and seasoned beef tenderloin over baby arugula, spinach and<br />
radicchio salad. The blend is tossed with creamy Italian dressing and then topped with bacon, crumbled blue cheese and a<br />
drizzle of balsamic honey glaze. Other new promotional dishes include Pork Chops Emiliana ($13.99) and Shrimp Diavolo<br />
($11.99). The pork chops feature grilled center-cut pork chops topped with smoked mozzarella, fresh sage, and porcini demi<br />
glace and are served with garlic mashed potatoes and vegetables. The shrimp offering is sautéed shrimp, garlic, fresh basil<br />
and linguine in a spicy tomato sauce. The salad is currently considered a feature item but will likely be added to the menu at<br />
some point in the future. The other two items are likely to be limited-time offerings available through mid-May. (Restaurant<br />
Business <strong>Menu</strong> Strategies Newsletter)<br />
Italian cuisine has gained mainstream status on chain menus. Given its popularity, chains are working not only to develop<br />
more authentic offerings at Italian concepts but also to supplement menus in concepts not devoted to that cuisine with pastas<br />
and other dishes showcasing Italian ingredients or influences. Olive Garden is continually working to adapt authentic Italian<br />
favorites for American tastes. Its most recent dishes include two versions of ravioli. One is stuffed with shrimp and crab in a<br />
lobster-based sauce, while the other features ground beef, sausage and chicken. It is also expanding into Italian-influenced<br />
seafood dishes. Its Salmon Piccata is grilled salmon with white-wine-and-lemon sauce accompanied by roasted vegetables.<br />
Other innovations include: ■ Ricotta Cheesecake Italiano—ricotta and cream cheeses baked with a hint of lemon and served<br />
with raspberry coulis, Bertucci’s ■ Polla Rosa Maria—fire-roasted chicken breast stuffed with fontina cheese and prosciutto,<br />
topped with mushrooms and basil-lemon butter sauce, Carrabba’s Italian Grill ■ Italian Nachos—mozzarella cheese,<br />
pepperoni, Italian sausage, pepperoncini and pizza sauce on pasta chips, Old Chicago ■ Pappardelle Pasta—with shrimp,<br />
saffron, basil, chiles and arugula, Piatti ■ Twice Baked Lasagna with Meatballs—slowly baked then topped with provolone and<br />
finished in a woodburning oven, Romano’s Macaroni Grill. (Restaurants & Institutions, 8/1/03, p66)<br />
Mushrooms are popular substitutes for proteins due to their lower cost, yet hearty taste. As a result, operators are utilizing<br />
mushrooms in a host of interesting applications. 312 Chicago serves a wild mushroom ragu with porcini, cremini and oyster<br />
mushrooms over soft polenta and mascarpone cheese, while Chattanooga, TN-based Gordon Biersch Brewery Restaurants<br />
offer a Smoky Portobello Mushroom Satay served with crisp polenta and salsa fresca. Country Kitchen features mushrooms in<br />
the majority of its menu items. Examples include Mushroom Spaghetti with Asiago cheese and a Grilled Cheese and<br />
Mushroom Panini. Romano’s Macaroni Grill had so much success with a stuffed portobello mushroom appetizer it increased<br />
the portion and made it an entrée. The mushroom is stuffed with ricotta, feta and Parmesan cheeses, spinach, garlic salt,<br />
pepper and seasoned bread crumbs. After baking, it is served over a salad of spinach, sun-dried tomato, roasted red pepper,<br />
radicchio and blue cheese with balsamic-honey dressing. (Chef 10/03 p21)<br />
Romano’s Macaroni Grill added a Tuscan Rib-Eye Steak to its menu. Priced at $16.99, it is a bone-in cut that is grilled and<br />
served with Tuscan herb butter, oven-roasted potatoes, fresh broccoli and carrots. (Restaurant Business <strong>Menu</strong> Strategies<br />
Newsletter 10/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
556
Personnel |<br />
John Miller, President<br />
David Schmille, Chief Operating Officer<br />
Theodore Croft, Vice President of Finance<br />
Diana Hovey, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Brinker International Inc. is negotiating to sell its 16-unit Cozymel’s Coastal Grill chain. The potential buyer was not identified.<br />
Brinker partnered with restaurant developer Phil Romano to open the first Cozymel’s in 1995 but the company said that the<br />
concept no longer fits in its portfolio, which also includes Chili’s Grill & Bar, Romano’s Macaroni Grill, Corner Bakery, Rockfish<br />
Seafood Grill and Big Bowl Asian Kitchen. Brinker said that it will instead target the segment at which Cozymel’s is aimed with<br />
its 133-unit On the Border brand. (NDNF 8/7/03)<br />
Brinker International reported a 3% increase in same-store sales for the four weeks ended August 27. The rise includes<br />
increases of 3.5% at Chili's Bar & Grill, 2.9% at Romano's Macaroni Grill, 2.7% at On the Border Mexican Grill & Cantina and<br />
0.8% at Maggiano's Little Italy. (NRN Daily NewsFax 9/5/03)<br />
Romano’s Macaroni Grill reported same-store sales increased 2.9% for the first two weeks of August. (Nation’s Restaurant<br />
News 9/15/03 p11)<br />
Romano’s Macaroni Grill for the first quarter ended September 24, reported same-store sales increased 0.9%. (NRN Daily<br />
NewsFax 10/22/03)<br />
Romano’s Macaroni Grill for the five weeks ended October 29, reported same-store sales decreased 2.8%. (NRN Daily<br />
NewsFax 11/7/03)<br />
Compass Group has entered into a partnership with restaurateur Phil Romano. The foodservice management firm teamed with<br />
the creator of such concepts as Romano’s Macaroni Grill and eatZi’s in an attempt to generate business in Texas and other<br />
western markets. Compass has been actively seeking ways to expand its buisness in the southwestern states. Currently,<br />
Romano heads Romano Concepts, a Dallas consulting firm, and owns and operates Nick and Sam’s Steakhouse. (NRN<br />
10/13/03 p18)<br />
The Orlando International Airport’s new food court is being operated by Select Service Partners. The food court, located in the<br />
center of the main terminal of the Orlando, FL, airport, includes McDonald’s, Sbarro and Krispy Kreme. Next year, the airport<br />
plans to open a Romano’s Macaroni Grill and Fox Sports Bar. (NRN 11/24/03 p24)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
557
Round Table Pizza<br />
Headquarters<br />
2175 N. California Blvd., Walnut Creek, California 94596-3573 USA<br />
Tel: (925) 274 1700 Fax: (925) 974 3978<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 374,000 364,500 357,400<br />
Company-owned ($000) 42,000 30,000 23,000<br />
Franchised ($000) 332,000 334,500 334,400<br />
U.S. Number of Units 514 508 518<br />
Company-owned 73 52 46<br />
Franchised 441 456 472<br />
International Sales ($000) 6,500 8,500 -<br />
International Units 8 14 14<br />
Average Sales/Unit ($000) 728 717 499<br />
Concept Positioning |<br />
Round Table Pizza, Inc. operates neighborhood-style pizza restaurants. The company markets to families and young adults<br />
who desire a light, cheerful atmosphere. Typically, the units have a limited number of electronic games. Great emphasis is<br />
placed on encouraging local community involvement, which is facilitated by the banquet room capacity available at most of the<br />
units. Many also offer use of big screen TVs in those rooms so, for example, a local sports team could view videotapes of its<br />
performance while eating out.<br />
Evening is the highest volume period, while lunch generates only 15% of sales; delivery and take-out generate more than 60%<br />
of sales. More than 80% of the chain offers delivery, and expansion efforts continue to make delivery available systemwide.<br />
Food is prepared daily at each unit from scratch with fresh ingredients. Some locations offer pizza by the slice.<br />
Most units are in shopping centers, but some are freestanding. Size ranges from 2,400–4,000 sq. ft., with seating for 55–144<br />
patrons. The company also has an on-line store offering shirts, mugs, toys, pizza cutters and aprons.<br />
The company was founded by Bill Larson in Menlo Park, CA, in 1959 and began franchising in 1962. In January 1979, it was<br />
acquired by a group of six businessmen. In June 1992, the company was sold to its employees, who currently own the private<br />
company. Current management includes Jim Fletcher, president and chief executive officer; Robert McCourt, vice president<br />
finance and chief financial officer; David Lundgren, executive vice president operations, franchising and business<br />
development.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: specialty or create-your-own pizza from any of 30 toppings. Choice of thin and pan crust offered. Sauces<br />
include both white and tomato bases and chicken is popular topping component. Also menus pizza and gourmet club<br />
sandwiches and Buffalo Chicken and Maui Zaui and appetizers. Most feature salad bar. Beer and wine available.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
558
Franchise Activity |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Round Table Pizza Inc. acquired 33 of its namesake units in Oregon and California from its largest franchisee, Castle<br />
Management Inc. Terms of the detail were not disclosed. (NRN Daily NewsFax 11/7/03)<br />
Personnel |<br />
Jim Parlette, President<br />
Rebecca Parlette, Chief Financial Officer<br />
Susan Reeves, Vice President of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
559
Roy’s Restaurants<br />
Headquarters<br />
1300 Dove St. Suite 105, Newport Beach, California 92660 USA<br />
Tel: (949) 261 2424 Fax: (949) 261 2626<br />
www.roysrestaurant.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 105,000 82,000 -<br />
Company-owned ($000) 105,000 82,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 30 27 -<br />
Company-owned 30 27 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,750 3,700 -<br />
Concept Positioning |<br />
Roy's Restaurant positions itself as an upscale seafood restaurant, specializing in Hawaiian-fusion cuisine. The menu is noted<br />
for its combination of exotic flavors mixed with local ingredients.<br />
The décor of Roy's is contemporary and upscale, with an exhibition kitchen finished in stainless steel and copper accents as<br />
the premier focal point. Restaurants are generally open for dinner only.<br />
General managers of Roy's restaurant are required to purchase a 6% interest in the restaurant he or she manages for $25,000<br />
and is further required to enter into a five-year employment agreement. The chef is also entered into a five-year agreement,<br />
though he or she only has to purchase a 5% interest for $15,000. Through this level of financial and time commitment, the<br />
company has been able to attract and retain quality managers and chefs.<br />
Roy's was founded by chef Roy Yamaguchi in 1988. In June 1999, Outback Steakhouse, Inc., through OS Pacific, Inc., agreed<br />
to develop and operate future Roy's worldwide.<br />
<strong>Menu</strong> Positioning |<br />
Hawaiian Fusion—Ecletic mix of spices and flavors with seafood, beef, short ribs, pork, lamb and chicken. Customized for<br />
local ingredients, though some entrees include Tri-Peppercorn Crusted Ahi Steak, Roasted Stuff Saddle of Lamb and Cured &<br />
Wood Grilled Pork Chop. Appetizers and desserts also served, such as Blackened Ahi and Seared Shrimp on a Stick. Full<br />
liquor serivce availabe accounts for 29% of revenues, including an extensive wine selection, including some who are exclusive<br />
to Roy's. <strong>Menu</strong> Prices: $8.00–$65.00. Check Averages: $45.00–$55.00.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
560
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Roy’s launched a new prix-fixe three-course menu at 17 of its 19 mainland units to showcase core offerings and drive traffic.<br />
The $30 meal includes a Hawaiian fusion sampler appetizer of shrimp on a stick with wasabi cocktail sauce, wood-grilled<br />
Szechuan-spiced baby back pork ribs and a chef’s special offering. Entrees include a choice of slow-braised and char-broiled<br />
short ribs of beef or Roy’s original blackened island ahi tuna in spicy soy mustard butter sauce. Dessert is Roy’s hot chocolate<br />
soufflé. (NRN Daily NewsFax)<br />
News & Other |<br />
Outback Steakhouse will open at least 90 restaurants in the U.S. and abroad at a cost of between $175 million and $200<br />
million. It will end 2003 with more than 1,000 restaurants representing seven brands: Outback, Carrabba’s, Bonefish Grill,<br />
Roy’s, Fleming’s, Selmon’s and Cheeseburger in Paradise. It could open as many as 106 restaurants in 2003. Of the 90 units<br />
pegged for this year, 41–47 will be its flagship steakhouse brand both in the U.S. and abroad and 24–26 will be Carrabba’s, its<br />
Italian concept. In 2002, the company opened 49 steak restaurants and 20 Carrabba’s. Bonefish Grill will more than double its<br />
15-unit count this year with 16–20 more units. In other news, Outback is introducing smaller cuts of its sirloin steak and filet<br />
mignon, an option that was popular during tests. The sirloin will be available as a 12-oz. or 10-oz. cut and the filet in a 10-oz.<br />
or 8-oz. serving. (FIR 4/14/03 p3; RB 5/1/03 p14)<br />
Roy’s is being repositioned as a high-end seafood restaurant, a category that it feels is wide open. Joint-venture partner<br />
Outback Steakhouse wants Roy’s average unit volume to hit $3.5 million, about $400,000 more than where they are now.<br />
Roy’s was preparing to launch an advertising campaign in high-end leisure magazines and is mounting an effort to build the<br />
private-party end of its business. In addition, the brand has been testing sushi. (RB 7/15/03 p40)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
561
Rubio's Baja Grill<br />
Headquarters<br />
1902 Wright Pl., Carlsbad, California 92008 USA<br />
Tel: (760) 929 8226 Fax: (760) 929 8203<br />
Ownership: Public<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 122,910 113,728 95,693<br />
Company-owned ($000) 119,310 112,728 95,693<br />
Franchised ($000) 3,600 1,000 -<br />
U.S. Number of Units 143 139 128<br />
Company-owned 136 137 128<br />
Franchised 7 2 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 886 872 747<br />
Concept Positioning |<br />
Defined as "freshly made Mexican," Rubio's is a limited service restaurant that is home to the fish taco, inspired by the cuisine<br />
of the Gulf Coast of Baja, Mexico. The concept also pays special attention to its health-conscious consumers with numerous<br />
items that have no more than 25% of their calories from fat. In addition, all items are made-to-order. In addition, much of the<br />
preparation is done on-premise each day including the making of its salsas, rice and guacamole.<br />
Units, open from 10:30 a.m. to 11 p.m. (later on weekends), are typically 2,200 sq. ft. and seat 50–60 guests. Most are located<br />
in high profile, high traffic areas as end-cap or in-line sites. They are decorated with contemporary Baja accents such as<br />
colorful tile tabletops, tropical plants, surf boards and salt water fish tanks as well as outdoor patios with palm-thatched<br />
umbrellas or palapas.<br />
In early 1997, it began a program to broaden the concept and changed its brand name from Rubio’s Fish Tacos to Rubio’s<br />
Baja Grill.In late 2000, the company began its franchising program with the signing of an eight-unit agreement with S&A<br />
Enterprises for the Portland, OR, market. A second followed in January 2001 with Paradini’s Foodservice for six units in the<br />
Fresno and Bakersfield, CA, markets.<br />
Following a trip to Baja, Mexico, in 1978, Ralph Rubio persuaded his father, Raphael, to join him in launching the concept. At<br />
the end of 1995, it was estimated the company had sold almost 16 million of its fish tacos. In mid-1999, the company<br />
completed an initial public offering and is now traded on the NASDAQ.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: “World Famous Fish Taco,” a taco containing pieces of beer battered and fried white fish with shredded<br />
cabbage, fresh salsa and yogurt-mayonnaise sauce with squeeze of lime in soft corn tortilla. Also menus charbroiled and<br />
traditional Mexican favorites in regular and Health-Mex versions as well as combos such as Cabo (shrimp burrito, fish taco,<br />
chips and beans). Adding grilled chicken, beef and fish entrees. Most units also feature domestic and Mexican beers. <strong>Menu</strong><br />
Prices: $1.89–$6.29. Check Averages: $6.37.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
562
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Rubio’s is promoting a Crunchy Shrimp Taco ($1.49) and a Crispy Shrimp Burrito ($4.79). The taco combines shrimp,<br />
shredded cabbage, salsa fresca and ancho chili sauce in a soft corn tortilla. (Restaurant Business <strong>Menu</strong> Strategies Newsletter,<br />
8/20/03, Nation’s Restaurant News, 8/25/03, p84)<br />
Rubio’s has rolled out Street Tacos as an authentic Baja California street food. They feature handmade corn tortillas filled with<br />
hand-made guacamole, diced onions, and cilantro and choice of seasoned slow-cooked carnitas (roasted pork) or marinated<br />
carne asada (grilled, chopped steak). A $2.99 order includes two tacos, while a $4.99 combo also includes rice, beans and<br />
chips. The product is part of an ongoing effort by the chain to add more meat items to its menu as it expands its focus beyond<br />
fish tacos. (Restaurant Business <strong>Menu</strong> Strategies Newsletter 10/1/03)<br />
Personnel |<br />
Ralph Rubio, Chairman<br />
Sheri Miksa, President<br />
John Fuller, Chief Financial Officer<br />
Tim Hackbardt, Vice President of Marketing<br />
Clynn Whitworth, Director of Purchasing<br />
Christy Geiling, Director of Marketing<br />
Kimberly Menzies, <strong>Menu</strong> Development/R&D<br />
Rubio’s Restaurants Inc. named Tim Hackbardt vice president of marketing. Previously, Hackbardt was marketing vice<br />
president for Taco Time International. (NRN Daily NewsFax 11/13/03)<br />
Rubio’s Restaurants named Tim Hackbardt vice president of marketing. Previously, Hackbardt was vice president of marketing<br />
at Del Taco. (Restaurant Business Daily News 11/13/03)<br />
News & Other |<br />
Rubio’s Restaurants Inc. for the third quarter ended September 28, reported revenues increased 6.1% to $32.7 million<br />
compared to the same quarter last year. Same-store sales increased 2.6%, and net income decreased 36% to $836,000.<br />
(NRN Daily NewsFax 11/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
563
Ruby Tuesday<br />
Headquarters<br />
150 W. Church St., Merryville, Tennessee 37801 USA<br />
Tel: (865) 379 5700 Fax: (865) 379 6812<br />
www.ruby-tuesday.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 1,170,000 999,000 920,071<br />
Company-owned ($000) 840,000 774,000 693,029<br />
Franchised ($000) 330,000 225,000 227,042<br />
U.S. Number of Units 608 525 506<br />
Company-owned 421 374 352<br />
Franchised 187 151 154<br />
International Sales ($000) 24,000 16,000 14,047<br />
International Units 19 12 10<br />
Average Sales/Unit ($000) 2,111 2,026 1,968<br />
Concept Positioning |<br />
Ruby Tuesday restaurants, a chain of full-service dinner houses, serves lunch, dinner and Sunday brunch. Its clientele covers<br />
a wide demographic group, including singles, families and shoppers of all age groups. Broad-based menus are revised on a<br />
regular basis. For example, recent menu additions expanded the pasta offerings and added several entree salads.<br />
Until recently most units were in shopping malls. However, Ruby Tuesday has adjusted its strategy to include development of<br />
freestanding locations and some 82% of new units will be freestanding. The company has been focusing on a new 5,600<br />
square-foot, 222-seat unit because of cost efficiencies.<br />
Existing prototypes range in size from 4,000 to 6,600 sq. ft, with seating for 152–290 guests. Although there is no standard<br />
decor, a characteristic blending of contemporary and nostalgic themes is achieved through an emphasis on greenery, stained<br />
and leaded glass, real wood paneling, polished brass, antiques, and memorabilia. Some form of red and white canopy usually<br />
marks the entrance. Freestanding units have a "branded" exterior that features a gold and black facade accented by red, black<br />
and yellow awnings.<br />
The chain was founded in 1972 when Sandy Beall, Lee Wallace, and Robert McClenegan opened the first unit on the campus<br />
of the University of Tennessee at Knoxville. Most growth has taken place since 1978. The company was acquired by Morrison,<br />
Inc., in 1982. In March 1996, Morrison split into three separate public companies. The restaurant holdings became Ruby<br />
Tuesday, Inc. Franchising of Ruby Tuesday began in 1997.<br />
In fall 2000, the company completed its divestiture of its secondary brands, American Cafe and Tia’s Tex-Mex to Specialty<br />
Restaurant Group, LLC, an entity formed by the president and partner of the American Cafe concept and his management<br />
team for some $54.5 million plus the cost of developing the three new units (currently estimated to be $4.5 million), of which<br />
Ruby Tuesday, Inc. will finance up to $20 million. It also has rights to acquire 33% of Specialty Restaurant Group, LLC through<br />
the fifth anniversary of the divestiture.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
564
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: ribs, chicken, fajitas and hamburgers. Other entrees include steaks and Cajun/Tex-Mex items such as Cajun<br />
broiled salmon or chargrilled fajita steak with red chile seasonings, pastas and sandwiches as well as daily specials. Also<br />
features soups, salad bar and Tallcake desserts in strawberry and chocolate Oreo. <strong>Menu</strong> Prices: $6.29–$16.99. Check<br />
Averages: $8.85.<br />
Promotion Plans |<br />
Ruby Tuesday has retained a high-profile New York-based ad agency—a dramatic departure from its traditional reliance on<br />
word-of-mouth and local marketing. It hired Kaplan Thaler Group to help it capture the business of consumers who have been<br />
looking for less-expensive alternatives to casual-dining brands such as Red Lobster, Outback Steakhouse and Olive Garden,<br />
the company told investors. (RB 4/1/03 p12)<br />
<strong>Menu</strong> Development |<br />
Ruby Tuesday’s new menu lowers prices for some entrees—as much as $2 in some cases—but has higher prices for burgers<br />
and sandwiches. The new collection also eliminates the chain’s Signature Dinner section. New dishes include a sirloin tips<br />
offering. (Restaurant Business Daily News)<br />
Ruby Tuesday rolled out several new burgers this past spring. Additions include a Pepper Jack Bacon Burger, Garlic<br />
Mushroom Burger and a Black and Bleu Burger that is seasoned with peppercorns and topped with crumbled blue cheese.<br />
(Nation’s Restaurant News, 7/21/03, p95)<br />
Ruby Tuesday is testing several health-oriented menu sections that note certain offerings as low calorie, low carbohydrate and<br />
low fat. The Low Carb Choices menu section includes several $8.99 combo plates. Offerings include broiled fish, grilled<br />
chicken or a chopped beef patty paired with sliced tomatoes, steamed broccoli and cottage cheese. The chain is also<br />
expected to switch its frying medium from a soybean-based oil to canola oil, which is lower in saturated fat and has no trans<br />
fatty acids. It is also developing a separate menu that will be available on request and will include only health-oriented dishes.<br />
It will feature offerings from the primary menu, such as the salad bar, as well as exclusive items. (Food Institute Report 9/1/03<br />
p6, Nation’s Restaurant News 9/15/03 p50)<br />
Ruby Tuesday launched its “Smart Eating” initiative. The effort includes switching from soybean oil to canola oil to reduce the<br />
level of trans fats in its dishes as well as the launch of 30 new menu items targeting weight-conscious guests and those<br />
monitoring carbohydrate intake. These dishes use more whole grains and steamed vegetables and offer alternatives to<br />
potatoes and white flour. For example, a creamy cauliflower dish can be substituted for mashed potatoes and burgers can be<br />
served in whole-grain wraps. Other offerings include whole-grain fajitas and quesadillas, entrée salads and low-carb<br />
cheesecake. The company also engaged in wellness training for each of its 33,000 employees to help them understand the<br />
importance of healthful eating habits. (Restaurant Business Daily News 11/12/03, Reuters 11/11/03, Nation’s Restaurant News<br />
11/12/03)<br />
Personnel |<br />
Sandy Beall, Chief Executive Officer<br />
Robert McClenagan, President<br />
Margie Naman Duffy, Chief Financial Officer<br />
Kimberly Grant, Vice President of Operations<br />
News & Other |<br />
The 100 largest U.S. restaurant companies in 2002 matched their 2001 performance, according to <strong>Technomic</strong> Inc. The<br />
aggregate annual rate of growth for those top operators was 4.7%. Their U.S. systemwide sales rose to $145.8 billion, a $6.6<br />
billion gain over the same chains’ 2001 results. The highest rate of growth in 2002 was in the “bakery/other sandwich”<br />
category, which grew 13.7%. The doughnut category was up 13%. The “broad menu” as well as Italian categories had sales<br />
growth that topped 8%. Among the fastest-growing chains were Starbucks, Ruby Tuesday, Subway, Chili’s Grill & Bar, Golden<br />
Corral and Sonic, according to <strong>Technomic</strong>. (NDNF 5/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
565
<strong>RISE</strong> COMPANY PROFILE<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
Ruby Tuesday plans to offer nutritional charts on its Web site and in restaurants, allowing customers to match up the content<br />
of each item with the requirements of their diet plans. Charts will include information such as "carbohydrate counts" and "fat<br />
grams." (Nation’s Restaurant News 9/15/03 p50)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
566
<strong>RISE</strong> COMPANY PROFILE<br />
Ruby Tuesday Inc. for its first quarter ended September 2, reported net income increased 21% to $24.5 million from $20.2<br />
million compared to the same quarter a year ago. Systemwide sales increased 11% to $349.2 million despite a 0.1% decrease<br />
in same-store sales for company-owned restaurants and a 0.5% decrease for franchised units. Revenues increased 12% to<br />
$249.9 million in the same quarter. (NRN Daily NewsFax 10/7/03)<br />
Ruby Tuesday forgave $11.2 million in debt from five franchise partnerships in the last year, according to a government filing.<br />
The franchisees were not identified but the chain said $7.9 million of the debt came from “two mid-sized franchisees in major<br />
metropolitan growth markets.” Their problems stemmed from “economic softness,” according to Ruby Tuesday. The bar-andgrill<br />
chain had also been forgiving royalty and support fee payments but now expects those payments to resume. Separately,<br />
Ruby Tuesday is offering $8.99 combo plates at 50 of its restaurants that are testing a “Low Carb Choices” section on their<br />
menus. The plates will offer pairings such as broiled fish, grilled chicken or a chopped beef patty paired with sliced tomatoes,<br />
steamed broccoli and cottage cheese. Ruby Tuesday expected to roll out the items throughout its U.S. stores when it freshens<br />
its menu in October. (RB 9/15/03 p15; FIR 9/1/03 p6)<br />
Ruby Tuesday for the quarter ended September 2, reported same-store sales at company-owned restaurants decreased<br />
0.1%. Same-store sales at franchised units decreased 0.5%. (RestaurantBiz.com 10/7/03)<br />
Ruby Tuesday is rolling out its curbside-delivery service to all 124 mall-based locations. Units will deliver meals to anywhere<br />
within their host retail center. The rollout is expected to be completed by the holiday season. Takeout accounts for 4% of sales<br />
at Ruby Tuesday. (RB 11/1/03 p13)<br />
Ruby Tuesday rolled out a ”Smart Eating” menu of some 30 new items, targeting those who are limiting their carbohydrate<br />
intake. Among the dishes are fajitas with whole-grain tortillas; burgers in whole-grain wraps; a creamy cauliflower alternative to<br />
mashed potatoes; and a low-carb cheesecake. In addition, the chain said it is switching to mono-unsaturated canola oil for<br />
frying. The 650-unit chain will place nutritional guides on every table. (NRN 11/24/03 p3; FIR 11/17/03 p7; R&I 11/15/03 p41)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
567
Ruth's Chris Steak House<br />
Headquarters<br />
3321 Hessmer Ave., Metairie, Louisiana 70002 USA<br />
Tel: (504) 454 6560 Fax: (504) 454 9060<br />
www.ruthschris.com<br />
Ownership: Private<br />
Segment: Full Service Steak - Fine Dining<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 294,400 295,464 310,462<br />
Company-owned ($000) 147,000 142,460 153,041<br />
Franchised ($000) 147,400 153,004 157,421<br />
U.S. Number of Units 86 82 70<br />
Company-owned 38 35 33<br />
Franchised 48 47 37<br />
International Sales ($000) 20,000 20,000 17,868<br />
International Units 9 9 6<br />
Average Sales/Unit ($000) 4,177 4,159 4,637<br />
Concept Positioning |<br />
Ruth's Chris Steak Houses, a chain of full-service, upscale steakhouses, specializes in U.S. prime beef. Restaurants serve<br />
dinner seven days a week; some also serve lunch. With the motto "The Home of Serious Steaks," the chain uses only corn-fed<br />
U.S. Prime beef bred in the Midwest and aged to exacting standards. Individual steaks are cut at each restaurant.<br />
Restaurants are conversions of existing buildings or new construction, with several located in office buildings. Patron seating<br />
averages about 200, and interior decor changes from unit to unit.<br />
The company's current operating philosophy is keeping its growth rate manageable. In addition, it is no longer accepting new<br />
franchisees into its system.<br />
Ruth Fertel had two teenage sons to put through college when she mortgaged her home to get $18,000 to buy a 17-table<br />
steakhouse in 1965. That restaurant was called "Chris Steak House" and she decided to keep the name until she started to<br />
expand to other locations. Then, she decided to use the name "Ruth's Chris Steak House."<br />
In 1977, the first franchise was granted and opened in Baton Rouge, LA. In 1999, the company sold its majority stake to<br />
Madison Dearborn Partners, a private equity firm. Madison Dearborn Partners, which manages $4 billion in investments, plans<br />
to increase both domestic and international growth of the chain.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: U.S. prime beef steaks served on a plate heated to 500 degrees that sizzles—in 12- to 22-oz sizes; accounts<br />
for 77% of sales. Also offered fresh seafood such as live Maine lobster; most feature veal. Fresh-cooked vegetables, including<br />
7 kinds of potatoes, salads, appetizers and homemade desserts complete the offerings. Alcoholic beverages available,<br />
including over 100 wines. <strong>Menu</strong> Prices: $3.95–$30.00. Check Averages: $47–$50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
568
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Ruth’s Chris is testing a new menu called Ruth’s Prime Temptations that features smaller portions and prices. Selections<br />
include a 14-oz. sirloin with blue cheese ($16.95); a 6-oz. filet mignon ($19.95); and a 12-oz. New York Strip ($22.95). Regular<br />
prices for these items range from $25.95–$29.95. The move came just one day after Outback Steakhouse announced it would<br />
offer smaller portions of its sirloin steak and filet mignon. A company spokesman for that chain noted that Baby Boomers no<br />
longer wanted the same large portions they used to desire. (Restaurant Business Daily News)<br />
Personnel |<br />
Jeff Conway, Chief Executive Officer<br />
Thomas Pennison, Chief Financial Officer<br />
James Cannon, Vice President of Purchasing<br />
Deborah Hinson, Director of Marketing<br />
Ruth’s Chris Steak House promoted Kevin Armantrout to regional vice president of the Louisiana, Texas and Minnesota<br />
regions. Most recently, Armantrout was general manager of the chain’s New Orleans restaurant. (NRN Daily NewsFax<br />
12/19/03)<br />
News & Other |<br />
Ruth’s Chris Steak House is testing a group of scaled-down entrees called Ruth’s Prime Temptations that feature smaller,<br />
lower-priced options. Included are a 6-oz. Filet mignon ($19.95) and a 12-oz. New York strip ($22.95). The filet on the regular<br />
menu is 12 oz. ($25.95) and the New York strip is 16 oz. ($29.95). The chain suggested that the downsized entrees would<br />
prompt more customers to indulge in dessert. Separately, Ruth’s Chris has broke a new print campaign featuring “Ruthisms,”<br />
sayings that reflect the philosophy and humor of chain founder Ruth U. Fertel, who died about a year ago. The print ads<br />
feature food photography coupled with pithy statements such as “All you have to do here is be you. Unless you’re no fun,” and<br />
“Life’s too short to eat anywhere else.” (NRN 4/21/03 p14; RB 5/1/03 p14)<br />
Ruth’s Chris Steak House promoted Geoffrey Stiles to executive vice president. Previously Stiles was director of operations for<br />
Ruth’s Chris. (NRN Daily NewsFax 12/5/03)<br />
Ruth’s Chris Steak House president and chief executive William L. Hyde Jr. resigned from the company. He continues to hold<br />
an ownership position in Ruth’s Chris. The company noted that his departure from the company was “very amenable.” No<br />
acting president or successor has yet been named. (NRN 11/17/03 p1)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
569
Ryan's Family Steak House<br />
Headquarters<br />
405 Lancaster Ave. P.O. Box 100, Greer, South Carolina 29652 USA<br />
Tel: (864) 879 1000 Fax: (864) 877 0950<br />
Ownership: Public<br />
Segment: Limited Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 815,858 787,210 744,544<br />
Company-owned ($000) 773,817 745,163 704,624<br />
Franchised ($000) 42,041 42,047 39,920<br />
U.S. Number of Units 346 336 324<br />
Company-owned 324 313 301<br />
Franchised 22 23 23<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,407 2,385 2,340<br />
Concept Positioning |<br />
Ryan's Family Steak Houses are family-oriented steakhouse buffets. Most units are open from 11 a.m. to 10 or 10:30 p.m.<br />
seven days a week. Patrons order at the counter upon entry and serve themselves at its Mega Barr buffet, but dinners and<br />
drink refills are brought to the table.Units are freestanding, generally near or adjacent to residential neighborhoods.<br />
Units average 8,000–12,500 sq. ft., with seating for 300–500 people in two or three dining areas. Bakery bars, located in<br />
dining rooms, allow customers to view preparation of freshly baked cookies, muffins, brownies and other baked goods, many<br />
that are sugar-free. In addition, meats are displayed on a central bar and carved to order by dedicated personnel.<br />
Its newest prototype, introduced in 2000 in 11 new and five retrofitted units, includes a glass-enclosed grill and cooking area in<br />
the dining room. Designed to be highly visible, it also has customer access to facilitate service of cooked-to-order meats.<br />
(Grilled meat orders are $1 more than its standard offerings.) Based on strong sales results from these units, more<br />
conversions are expected to take place.<br />
Purchasing is centralized for approximately 90% of its foodstuffs and other product needs. Fresh produce is handled on a local<br />
basis.<br />
The business was incorporated in 1977 by Alvin McCall, Jr., and commenced operations in July 1978. Prior to December 30,<br />
1981, restaurant operations were owned by several partnerships that have since been reorganized. Ryan's went public in<br />
1982. Its Mega Barr was first introduced in 1985; an ice cream bar was added in 1986.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: full line of USDA Choice aged grain-fed steak. Also menus charbroiled Hawaiian chicken, salmon, flounder,<br />
shrimp and hamburgers. All entrees served with choice of baked potato, fries or rice pilaf. Its buffet also offers a variety of hot<br />
meats, hot steamed vegetables, soups, salads, cheeses, fresh fruits, hot and cold desserts such as ice cream and frozen<br />
yogurt and hot yeast rolls made from scratch; accounts for 70% of revenues. Check Averages: $7.14.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
570
Franchise Activity |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Ryan’s Family Steakhouses signed an agreement to end its 16-year franchise relationship with Family Steakhouses of Florida<br />
Inc. by June 30, 2005. Under the agreement, Ryan’s would develop company owned restaurants outside of Florida. (NRN<br />
Daily NewsFax 12/19/03)<br />
Personnel |<br />
Charles Way, Chairman<br />
Fred Grant, Chief Financial Officer<br />
Alan Shaw, Senior Vice President of Operations<br />
Irene Turbow, Vice President of Marketing<br />
News & Other |<br />
Ryan’s Family Steakhouses is testing the new name Fire Mountain in four locations in an effort to avoid the negative<br />
connotation associated with family steakhouses. The chain is in the midst of a renovation drive as well. In areas where the<br />
company deems family steakhouses to be unfairly viewed in a negative light, it will change its name. (RB 5/15/03 p12)<br />
Ryan’s Family Steak Houses Inc. for the third quarter ended October 1, reported same-store sales increased 1.2% compared<br />
to the same quarter a year. Total third-quarter sales increased 6% to $205.8 million. (NRN Daily NewsFax 10/6/03)<br />
Ryan’s Family Steak Houses Inc. for the third quarter ended October 1, reported same-store sales increased 1.2%. Restaurant<br />
sales increased 6.0% to $205.7 million, and net earnings decreased 4.6% to $11.0 million. (NRN Daily NewsFax 10/23/03)<br />
Ryan’s Family Steak Houses Inc. for the third quarter ended October 1, reported same-store sales increased 1.2%. (Nation’s<br />
Restaurant News 11/3/03 p12)<br />
Ryan’s Family Steak Houses Inc. for the five weeks ended November 5, reported same-store sales increased 4.1% compared<br />
to the same quarter last year. (NRN Daily NewsFax 11/12/03)<br />
Ryan’s Family Steak House for the four weeks ended December 3, reported that same-store sales increased 5.9% compared<br />
to the same period a year ago. (NRN Daily NewsFax 12/9/03)<br />
Ryan’s Family Steak Houses for the four weeks ended December 31, reported that same-store sales rose 1.7% and 4% for<br />
the fourth quarter. (NRN Daily NewsFax 1/5/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
571
Sagebrush Steakhouse & Saloon<br />
Headquarters<br />
129 Fast Lane P.O. Box 3130, Mooresville, North Carolina 28117 USA<br />
Tel: (704) 660 5939 Fax: (704) 799 6199<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 55,400 62,500 67,000<br />
Company-owned ($000) 55,400 62,500 67,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 44 45 49<br />
Company-owned 44 45 49<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,260 1,275 1,367<br />
Concept Positioning |<br />
Sagebrush Steakhouse, a chain of full-service steakhouses, serves moderately priced meals in an atmosphere reminiscent of<br />
a Texas roadhouse. Western memorabilia and collectibles, featuring country music, create ambiance. Complimentary peanuts<br />
are served and guests are encouraged to drop their shells onto the floor. Food and non-alcoholic beverages account for more<br />
than 90% of sales.<br />
While most of its units have been converted from other concepts, a prototype has been developed and will be used for future<br />
openings. Restaurants range in size from 4,500–8,500 sq. ft. with seating for 150–280 patrons. Units are decorated with<br />
wooden booths and walls and a mixture of western memorabilia and other collectibles, including license plates and signs from<br />
around the United States, photographs of sports figures and movie stars and replicas of antique jukeboxes featuring country<br />
music. Private banquet rooms are also available in many units.<br />
The first Sagebrush Steakhouse & Saloon opened in Hickory, NC, in 1990. In early 1996, it went public. Then in November<br />
1997, the company entered into a definitive agreement to merge with WSMP (later Fresh Foods, Inc.), operator and franchiser<br />
of Western Steer, in a stock deal worth $41.5–$44.4 million. The merger was completed in January 1998. In October 1999,<br />
Carousel Capital Partners, L.P. acquired the Claremont Restaurant Group holdings of Fresh Foods including the Sagebrush<br />
chain.<br />
<strong>Menu</strong> Positioning |<br />
Signature items 9 different steaks that range from Miss Kitty Filet (7 oz.) to Sagebrush Porterhouse (22 oz.). Also menus<br />
Prime rib, baby back ribs, pork chops, chicken and seafood as well as hamburgers and chicken sandwiches. Lunch menu<br />
features Blue Plate Daily Special. <strong>Menu</strong> Prices:$3.99–$19.99. Check Averages: lunch, $8.77; dinner, $13.96.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
572
Saltgrass Steak House<br />
Headquarters<br />
1510 W. Loop South, Houston, Texas 77027 USA<br />
Tel: (713) 850 1010 Fax: (713) 810 7205<br />
www.saltgrass.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 110,000 91,500 70,000<br />
Company-owned ($000) 110,000 91,500 70,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 27 24 18<br />
Company-owned 27 24 18<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 4,200 4,000 4,100<br />
Concept Positioning |<br />
Saltgrass Steak House combines a historic Texas atmosphere with a menu of signature "certified Angus beef" steaks as well<br />
as chicken, seafood and pork specialities that are reminiscent of the "old Southwest." Its décor features a "roadhouse" theme<br />
that includes an extensive use of Texas artifacts and rustic materials as well as barn-wood walls with old license plates tacked<br />
to them, and specially selected music and signage. Units, which seat 275 guests and average 8,000 sq.ft., are typically located<br />
next to major highways.<br />
Named for the historic Saltgrass Trail, which led Texas cattle from coastal salt grass lands to the markets, the first Saltgrass<br />
Steak House opened in Houston in 1990. Cliff Halphen and William Osterhout were its creators. The company also owns and<br />
operates six-unit Denis' Seafood Restaurant, acquired in early 1997 from bankruptcy. It plans to renovate those units for future<br />
expansion. Along with co-founder Osterhout, who serves as chief executive officer, other key management includes Wayne<br />
McDonnell, partner, and Cynthia Wackar, marketing director. Average unit volumes are approximately $4.2 million.<br />
Systemwide sales are estimated at $110 million.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
573
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Saltgrass Steak House has 10 signature steaks (accounting for about 40% of sales), in addition to lunch and dinner<br />
specialities such as chicken, seafood and ranch hands' favorites. Steaks weighing between 8–22 oz. are certified Angus beef<br />
seasoned with a unique 7-steak spice and topped with garlic butter (or served on the side). Each includes a dinner salad,<br />
Caesar salad or cup of soup and Shiner Bock Beer Bread plus a choice of sides, such as french fries, baked potato, Romano<br />
potatoes, garlic mashed potatoes, Texas rice or fresh seasonal vegetables. Its largest steak is the Silver Star Porterhouse—a<br />
22-oz. combination of filet and strip steaks for $22.95. Chicken entrees include a 10-oz. grilled chicken breast ($10.95), a<br />
chicken tenders platter ($9.95) and El Paso chicken—grilled chicken breast covered with roasted poblano peppers, melted<br />
Monterey Jack cheese and ranchero sauce ($11.95). Chicken Fried Steak ($9.95) and Texas Quail ($13.95) are examples of<br />
its ranch hand specialties section. Checks average $11 at lunch and $19 at dinner.<br />
Expansion Plans |<br />
Landry’s Restaurants expects to open 28–30 restaurants this year. Of those openings, 18–20 will be Joe’s Crab Shacks, its<br />
largest concept. The Joe’s openings include the conversion of about 10 existing Chart House locations to the Joe’s brand.<br />
Other openings include new units for the Saltgrass Steakhouse, Rainforest Cafe and Aquarium brands. (RB 2/15/03 p41)<br />
News & Other |<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
574
Sbarro<br />
Headquarters<br />
763 Larkfield Rd., Commack, New York 11725 USA<br />
Tel: (631) 715 4100 Fax: (631) 715 4185<br />
www.sbarro.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Sbarro Specialty Concepts<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 443,535 470,041 478,519<br />
Company-owned ($000) 322,122 345,041 358,700<br />
Franchised ($000) 121,413 125,000 119,819<br />
U.S. Number of Units 765 816 828<br />
Company-owned 558 602 636<br />
Franchised 207 214 192<br />
International Sales ($000) 83,661 70,000 73,000<br />
International Units 146 111 111<br />
Average Sales/Unit ($000) 580 576 563<br />
Concept Positioning |<br />
Sbarro cafeterias and buffet-style service restaurants are family-oriented operations serving lunch, dinner and late meals<br />
seven days a week. Breakfast is also available in a few locations. All foods, except cheesecake, are prepared fresh daily at<br />
each unit.<br />
Units are located in-line with other stores in shopping malls or in mall food courts. Food-court outlets are 500–1,000 sq. ft.,<br />
while in-line restaurants range from 1,500–3,000 sq. ft. and seat 60–120 patrons. These larger units offer booth and table<br />
seating in a contemporary Italian deli setting. Replicas of hanging cheeses, prosciutto, hams and other Italian specialties<br />
create a traditional ambiance. The chain has also entered a variety of nontraditional locations, including airport terminals and<br />
turnpike travel plazas, as well as hospitals, hotels, casinos and universities.<br />
Sbarro has entered into various joint-venture agreements as part of its concept development strategy. The ventures moved the<br />
company into the full-service, casual-dining segment. Current concepts operate under the following brands: Boulder Creek<br />
Steaks and Saloon, Rothmann’s, Burton and Doyle, Baja Grill, Vincent’s Clam Bar, Salute, Medi, and Mama Sbarro’s.<br />
The company was founded by the Sbarro family in 1955 and incorporated in 1977. In May 1985, Sbarro made an initial public<br />
offering. In late 1999, a merger with the Sbarro family was approved, and it took the company private.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: pizza, primarily by the slice and pizza products such as a stuffed variety; accounts for about 50% of sales. Also<br />
menus pasta dishes, hot and cold Italian entrees, salads and sandwiches. Desserts include signature cheesecake. Many<br />
larger units serve beer and wine. <strong>Menu</strong> Prices: $2.99–$5.29. Check Averages: $5.50<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
575
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Sbarro’s licensee in Spain closed all six of its units there following a declaration of bankruptcy in mid-February. The franchise,<br />
reportedly owned by a group of Belgian investors led by Nodari Tetruashvili, owes creditors a total of $11.4 million. (NRN<br />
3/31/03 p64)<br />
Sbarro opened its 30th unit in Russia in Moscow’s Red Square. The store, in a mall that previously housed the venerable<br />
GUM department store, serves the full Sbarro line of Italian foods as well as items aimed at the Russian palate, including thincrust<br />
pizza, fish soup, borscht and pasta with pulled pork. It is the only Sbarro unit that serves vodka. Sbarro, which entered<br />
Russia five years ago, plans to continue expanding throughout Europe and into new markets such as Africa and China. (NRN<br />
11/10/03 p80)<br />
Personnel |<br />
Michael O'Donnell, President<br />
Mario Sbarro, Chairman<br />
Steven Graham, Director of Purchasing<br />
Sbarro's Gennaro Sbarro has resigned as corporate vice president and president of Sbarro’s casual and fine-dining division.<br />
Also, three of Anthony Sbarro’s sons were fired from the company. (Restaurant Business Daily News 11/21/03)<br />
News & Other |<br />
RTM Restaurant Group is halting all co-branding initiatives to focus on its Arby’s core brand. Arby’s largest franchisee with 789<br />
units in 22 states, RTM is opting for the single-brand approach due in part to Arby’s expanded menu strategy with its premium<br />
MarketFresh deli sandwich line and the new Bistro line of sandwiches now in test. Such options eliminate customers’ veto<br />
vote, according to RTM management, since Arby’s isn’t just a place for roast beef anymore. The company recently halted its<br />
eight-year-old experiment with dual-branding Mrs. Winner’s and Del Taco. It had planned to dual-brand the entire Mrs.<br />
Winner’s chain. Remaining co-branded stores are four Arby’s/Mrs. Winner’s as well as 16 Arby’s-Sbarro units and 43<br />
Arby’s/T.J. Cinnamons in several markets. Those units still in operation will be evaluated based on revenues and profit on an<br />
individual basis. The dual Arby’s/Mrs. Winner’s are in RTM’s home base of Atlanta and most of the Arby’s/Sbarro units are in<br />
Minnesota. Separately, RTM plans to open at least 35 new Arby’s annually through 2009 and to remodel 15–20 restaurants<br />
per year. (NRN 7/14/03 p1)<br />
National Amusements Inc. signed a deal with Sbarro for branches of the Italian quick-service chain in the 1,381-screen movie<br />
exhibitor’s cineplexes. The agreement calls for Sbarro to open outlets in seven theater venues, with 12 more to follow by the<br />
end of 2003. The initial outlets, which will serve four types of pizza, are slated to debut in New York, Ohio and Massachusetts.<br />
(NRN 9/1/03 p116)<br />
Tennessee Tech University has turned over its foodservice operations to Chartwells College and University Dining Services. It<br />
had been the only public university in Tennessee still handling its own foodservice. Chartwells will make an investment of<br />
about $3.5 million in renovating Tennessee Tech’s foodservice facilities over a five-year period. The retail food court, which<br />
now includes a Sbarro, Taco Bell, salad bar and grill station, will be expanded with a Wendy’s outlet and a sub shop. Also<br />
planned are construction of a c-store and the complete renovation of a residential dining facility. (FSD 8/15/03 p1)<br />
Sbarro Inc. tapped the first non-family member to be its chief executive and president. Michael P. O’Donnell will succeed Mario<br />
Sbarro, who will remain chairman. (NRN 9/29/03 p64)<br />
Logan International Airport’s recently overhauled Terminal E includes 10 different restaurant brands. The revamped<br />
foodservice at the Boston airport was coordinated by BAA Boston. They include a 10,000-sq.ft. food court featuring<br />
McDonald’s, Sbarro, Wok & Roll and Au Bon Pain. Nearby is a 3,250-sq.ft. full-service Houlihan’s. Located in the presecurity<br />
retail area is Dine Boston Bar & Grill and a Dine Boston Café, both owned by Boston Red Sox player Darren Lewis. Their<br />
menus feature dishes from well-known Boston chefs, including Jimmy Burke of Tuscan Grill and Joe Milano of Old Union<br />
Oyster House. Logan International also plans to renovate food venues in its Terminals B and D. (NRN 9/29/03 p20)<br />
The Orlando International Airport’s new food court is being operated by Select Service Partners. The food court, located in the<br />
center of the main terminal of the Orlando, FL, airport, includes McDonald’s, Sbarro and Krispy Kreme. Next year, the airport<br />
plans to open a Romano’s Macaroni Grill and Fox Sports Bar. (NRN 11/24/03 p24)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
576
Sbarro Specialty Concepts<br />
Headquarters<br />
401Broadhollow Road, Melville, New York 11747 USA<br />
Tel: (631) 715 4100 Fax: (631) 715 4192<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 68,522 68,978 -<br />
Company-owned ($000) 68,522 68,978 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 32 35 -<br />
Company-owned 32 35 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,141 1,971 -<br />
Concept Positioning |<br />
Sbarro Inc., either independently or through a group of joint ventures, owns and operates specialty restaurants that have<br />
moved the company into the casual-dining segment. While many of the group are single restaurant brands, two have been<br />
duplicated with the largest being its family-style Italian Mama Sbarro’s chain brand. The second is a casual-dining steak chain,<br />
Boulder Creek Steakhouse & Saloon.<br />
Others ventures include two upscale steakhouses, Burton & Doyle and Rothmann’s steakhouse; a Italian-Mediterranean<br />
restaurants in Manhattan named Salute!<br />
In addition, Sbarro Specialty has Tony and Bruno’s, an inexpensive Italian eatery, and through its Mex SS group, jointly owns<br />
and operates (with fellow limited-service Italian chain operator Scotto) two Baja Grills that feature Mexican-style wraps.<br />
Another venture group, Sbarro Seafood Inc., manages its Vincent Clam Bars.<br />
Parent Sbarro Inc. has invested more than $12 million in new concepts since 1995. As of February of 2000, specialty concepts<br />
accounted for about 4% of company revenues.<br />
Personnel |<br />
Sbarro's Gennaro Sbarro has resigned as corporate vice president and president of Sbarro’s casual and fine-dining division.<br />
Also, three of Anthony Sbarro’s sons were fired from the company. (Restaurant Business Daily News 11/21/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
577
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
National Amusements Inc. signed a deal with Sbarro for branches of the Italian quick-service chain in the 1,381-screen movie<br />
exhibitor’s cineplexes. The agreement calls for Sbarro to open outlets in seven theater venues, with 12 more to follow by the<br />
end of 2003. The initial outlets, which will serve four types of pizza, are slated to debut in New York, Ohio and Massachusetts.<br />
(NRN 9/1/03 p116)<br />
Sbarro Inc. tapped the first non-family member to be its chief executive and president. Michael P. O’Donnell will succeed Mario<br />
Sbarro, who will remain chairman. (NRN 9/29/03 p64)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
578
Schlotzsky's Deli<br />
Headquarters<br />
203 Colorado St., Austin, Texas 78701 USA<br />
Tel: (512) 236 3600 Fax: (512) 236 3650<br />
Ownership: Public<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 392,500 415,222 421,220<br />
Company-owned ($000) 28,000 29,906 25,738<br />
Franchised ($000) 364,500 385,316 395,482<br />
U.S. Number of Units 654 653 687<br />
Company-owned 35 33 29<br />
Franchised 619 620 658<br />
International Sales ($000) 7,500 7,946 8,217<br />
International Units 21 21 24<br />
Average Sales/Unit ($000) 575 615 887<br />
Concept Positioning |<br />
Schlotzsky's Deli shops are open for lunch, dinner and snacks seven days a week and offer walk-up, counter and take-out<br />
service. All units display deli cases, meats, cheese, and private label Schlotzsky's products throughout the restaurant. To<br />
ensure freshness, sandwich buns and pizza crusts are baked from scratch daily in each unit. Lunch departs account for about<br />
65% of sales; the rest come from the dinner day part.<br />
Since 1996 the company has focused on the development of freestanding prototypes of 3,200–3,700 sq. ft. with seating for<br />
60–80. Each prototype unit features an on-premise bakery, a drive-through lane and many also have outdoor seating.<br />
Currently, 52% of units are freestanding and 27% are end caps; new prototypes have higher than average sales. This new<br />
design features antique Chicago-style brick with extensive wood and masonry. Using old-world colors with warm and friendly<br />
textures, the new units strive for the cluttered look of an old Italian grocery store.<br />
As part of a long-standing partnership with Coca-Cola, the chain introduced Deli Deals in 1999. Coca-Cola created new menu<br />
boards for the debut of the program which combined a sandwich or pizza, chips and a drink. Deli Deals accounted for 20% of<br />
sales and increased check averages in the units in which they were launched.<br />
Important to the chain are its private label products ranging from chips, meats and cheeses, to salad dressings, mustard and<br />
olive oil. Over 100 products carry the label. Some are also sold separately in stores for home consumption. In a new alliance<br />
with Wal-Mart, Schlotzsky’s Deli Brand potato chips debuted in 450 stores.Schlotzsky's first opened in Austin, TX, in 1971 and<br />
began franchising in 1977. The chain was sold in 1981 to brothers John C. and Jeffrey J. Wooley. In December 1995,<br />
Schlotzsky’s, Inc. went public.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
579
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Varied menu includes 15 sandwiches on 4 types of bread, 10 sour dough crust pizzas and 5 salads. Signature item:<br />
Muffaletta-style sandwich called The Original which contains 3 deli meats, 3 cheese, black olives, lettuce, tomatoes, onions<br />
and seasonings served on sourdough bun; continues to be most popular item; Light sandwich selection includes albacore<br />
tuna, chicken and thin-sliced turkey breast. Pizzas varieties include Thai and Barbecue Chicken. Other items include soups,<br />
signature potato chips, variety of cookies, soft-serve frozen yogurt as well as other dessert items. <strong>Menu</strong> Prices: $3.00–$7.<br />
Check Averages: $5.<br />
<strong>Menu</strong> Development |<br />
Schlotzsky’s introduced a lower-fat version of its Turkey Original sandwich. Its Tuscan Turkey has just seven grams of fat and<br />
features oven-roasted turkey, artichoke-lemon pesto, romaine lettuce and tomatoes on toasted Rosemary Parmesan bread,<br />
while the Turkey Original has smoked turkey, Genoa salami and three cheeses on the chain’s signature toasted sourdough<br />
bread. It is priced at $4.99. Schlotzsky’s menu of lighter fare (seven grams of fat or less) now features six sandwiches,<br />
including a Smoked Turkey and Dijon Chicken Sandwich, as well as five salads, such as the Fresh Fruit Salad and wholewheat<br />
and spicy tortilla wraps in flavors such as Asian Almond Chicken and Zesty Albacore Tuna. The company used both<br />
nutritionists and chefs to create these special items. (Business Wire, NRN Daily NewsFax)<br />
Schlotzsky’s developed a new menu that features additional lower-calorie and reduced-fat offerings as well as an upgraded<br />
breakfast program and expanded children’s menu. Launched at one restaurant in Austin, TX, in March, the menu will also be<br />
tested in two new restaurants before making plans for a systemwide rollout. The new version features 13 items, out of a total<br />
80, that have nine grams of fat or less. Examples include made-to-order salads such as a honey-lime chicken variety served<br />
with grilled chicken, honey-lime vinaigrette and Thai Peanut sauce or a Mediterranean Eggplant Feta salad topped with<br />
creamy feta dressing. Gourmet options have also been introduced. These include a Tuscan Turkey sandwich with ovenroasted<br />
turkey, artichoke-lemon pesto, romaine lettuce and tomatoes on toasted rosemary-Parmesan bread and new panini<br />
sandwiches on grilled ciabatta bread. Varieties include grilled chicken and prosciutto crustini. It has also added a “Pick Any<br />
Two” option that allows guests to customize their meals by choosing half-sandwiches, half-pizzas, half-salads, half-wraps and<br />
bowls of soup. The Austin outlet currently offering the new menu also sports a new look dubbed “Concept 2005” that highlights<br />
the chain’s bakery and wine offerings. The prototype is designed to allow Schlotzsky’s to better position itself in the quickcasual<br />
segment. (Nation’s Restaurant News)<br />
Lighter sandwiches emphasizing fresh ingredients are increasingly common in the limited-service segment as operators work<br />
to boost the healthy options on their menus. Schlotzsky’s is just one example. The chain is currently testing 13 “lighter side”<br />
offerings with nine grams of fat or less. Others have also created sandwiches for health-minded consumers, though taste and<br />
flavor remain priorities. Examples include: ■ Turkey Sandwich—with banana peppers, black olives, cucumbers, red onions,<br />
tomatoes, field greens and fat-free champagne vinaigrette on a baguette, Arby’s ■ Spicy Chipotle Chicken—with chipotle<br />
mayonnaise, red onions, romaine lettuce and roma tomatoes on Tuscan herb bread, Schlotzsky’s ■ Chicken Stir-Fry D’Lite—<br />
grilled chicken, mushrooms, peppers, onions, lettuce and tomatoes with fat-free garlic or ginger sauce, D’Angelo Sandwich<br />
Shops ■ Sweet Onion Chicken Teriyaki—teriyaki-glazed chicken strips, lettuce, tomatoes, onions, green peppers, olives and<br />
fat-free sweet onion sauce on choice of bread, Subway. (Restaurants & Institutions, 8/1/03, p29)<br />
Smaller, snack-sized portions are becoming increasingly common on chain menus as many consumers adopt grazing styles of<br />
eating versus three main meals. According to Information Resources Inc.’s “What do Americans Really Eat?” survey, many<br />
consumers are relying on snack-size portions up to six times daily instead of larger main meals. To meet this need, a number<br />
of chains have retooled their menus. California-based Z’s Pizza already offers its pizza by the slice (a practice not terribly<br />
common on the West Coast) but is also considering “hors d’oevre-size” half slices as well as a 16-oz. side salad besides its<br />
standard 32- and 64-oz. sizes. Donatos has expanded its appetizer menu from side salads and bread sticks to now include<br />
three-cheese garlic bread and wings. Schlotzsky’s also noticed more traffic in off-peak periods and now offers sandwiches in<br />
small (4-inch) and regular (6-inch) sizes. Salads are also available in whole- and half-portions and baked potatoes in whole-<br />
and half-sizes are currently in test. Cosi serves S’Breadables to appeal to snackers. The item features wedges of its signature<br />
flatbread served with a choice of seven spreads. Options include sun-dried tomato, pesto ricotta, hummus and Tuscan salsa.<br />
(QSR Magazine, 9/03, p70)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
580
<strong>RISE</strong> COMPANY PROFILE<br />
Nuts are gaining ground on limited-service menus as chains in that segment upscale their offerings. The popularity of fastcasual<br />
Asian menus has broadened consumer exposure to Asian recipes that often include nuts and some operators are now<br />
incorporating nuts into mainstream menu items to add a pan-Asian influence. Wendy’s offers nuts in its Mandarin Chicken<br />
Salad with almonds and Schlotzsky’s uses nuts not only as a salad topping, but also in sauces such as its Thai peanut sauce<br />
on a Thai Chicken Pizza. Another popular offering is an Asian Almond Chicken Wrap and almond-topped asparagus soup.<br />
Atlanta Bread Company features almonds on its Georgian Chicken Sandwich as well as a Curry Chicken Salad and Chopstix<br />
Salad. (QSR 10/03 p59)<br />
Schlotzsky’s new panini sandwiches represent an effort by the chain to offer more upscale fare. They feature bread from La<br />
Brea Bakery. A top seller is the Chicken Romano with grilled chicken breast Gruyere cheese, sweet red peppers and fresh<br />
baby spinach on artisan bread. (Nation’s Restaurant News 11/10/03 p127)<br />
International Activities |<br />
Global ingredients are also appearing on more pizzas. As operators and chefs branch out from traditional Italian roots, pies are<br />
increasingly showcasing toppings more indicative of Asian, Indian or Mexican cuisines. California Pizza Kitchen has built its<br />
reputation on innovative pizzas. Its offerings range from an Asian-inspired Peking Duck featuring roasted duck, mozzarella,<br />
soy-glazed shiitake mushrooms, crispy wontons, green onion and ginger-hoisin sauce to a Tandoori Chicken Pizza with Indian<br />
accents. It is topped with Indian-spice marinated chicken, zucchini, yellow squash, cilantro, mozzarella and spicy tomatoyogurt<br />
curry with mango chutney on the side. An especially popular option is its Thai Chicken Pizza, which features peanutginger-marinated<br />
chicken, bean sprouts, carrots, cilantro and roasted peanuts. Company officials say it is the only pie to rival<br />
its best-seller: the Original Chicken Barbecue Pizza. Schlotzsky’s has also infused its pizza offerings with ethnic creativity. It<br />
now offers Kung Pao Chicken Pizza with roasted chicken breast, carrots, green onions, mozzarella, peanuts and Kung Pao<br />
sauce on an herbed sourdough crust as well as a Mediterranean Pizza with basil pesto, black olives, tomato, onion and feta<br />
and mozzarella cheeses. Many operators note that the decision to offer international pizza toppings allows them to make<br />
ethnic foods more accessible by using a familiar American format. They also note that it allows them to follow trends toward<br />
increasing consumer interest in ethnic foods. (Restaurant Business)<br />
Technology |<br />
American Express Co.'s ExpressPay is being tested by Carl's Jr., Dairy Queen, Quiznos Subs and Schlotzsky's Deli. Currently<br />
limited to the Phoenix area, the cashless transaction system charges a customer's American Express account from a keychain<br />
fob with RFID technology. Participating users have reported 30–40% quicker checkout times. (Nation's Restaurant News<br />
8/11/03 p70)<br />
Personnel |<br />
John Wooley, Chief Executive Officer<br />
Joyce Cates, Senior Vice President of Operations<br />
Karl Martin, Senior Vice President of Marketing<br />
Gil McCoy, Vice President of Purchasing<br />
Steve Braasch, Vice President of Marketing<br />
Lou Mabley, Director of Marketing<br />
Emmett Fox, <strong>Menu</strong> Development/R&D<br />
Schlotzsky’s Inc. chief financial officer Rick Valade resigned. (Nation’s Restaurant News 10/27/03 p92)<br />
News & Other |<br />
Schlotzsky’s closed 55 units and is hoping its “Concept 2005" menu and design changes will increase competitiveness. The<br />
closures follow 73 store closings in 2001. The company said that its “Concept 2005" plan calls for new menu offerings and a<br />
more contemporary store design, both of which are expected to help make Schlotzsky’s a quick-casual player. Included in the<br />
new food lineup will be additional lower-calorie and reduced-fat items, an expanded children’s menu and a breakfast program.<br />
In addition, catering and delivery will receive increased emphasis. For fiscal ‘02, Schlotzsky’s reported a loss of $199,048 for<br />
the year, compared with ‘01 earnings of $2.5 million. Revenues for 2002 declined 2%, to $60.5 million, and same-store sales<br />
fell 6.1%. (NRN 4/7/03 p76)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
581
<strong>RISE</strong> COMPANY PROFILE<br />
Schlotzsky’s is testing a new menu and unveiling a new prototype. The 643-unit sandwich chain’s new menu, in test at its<br />
flagship South Lamar restaurant in Austin, TX, features new pizzas, salads, soups, espresso drinks, kids meals, stuffed baked<br />
potatoes and panini. Among the items are a Greek feta-and-portabello wrap and baby-spinach salad pizza. More than 80<br />
items are on the menu, including 13 that have nine grams of fat or less. Among the new “lighter-side” selections are a spicy<br />
chicken chipotle sandwich and a baked potato stuffed with barbecued beef. Both have nine grams of fat. Salads will be tossed<br />
in a new “food theater” space rather than served from the deli case. Among the new salads is honey-lime chicken salad with a<br />
Thai peanut sauce. Its new panini are grilled sandwiches featuring ciabatta bread and grilled chicken or prosciutto. The<br />
company noted that thus far, customer response to the new menu has been very positive. In addition, it was preparing to open<br />
a new restaurant in Austin that will be an extension of its Schlotzsky’s Concept 2005 design, which it began testing in March.<br />
In addition to the expanded menu, the outlet will feature updated decor, wireless Internet access and food served on china.<br />
(NRN 6/9/03 p16; NDNF 6/18/03)<br />
Schlotzsky’s is cutting its corporate staff by 29% and cutting senior staff’s salary as part of a realignment to reduce expenses<br />
and place greater emphasis on growth via franchising. The cuts involve eliminating 39 jobs, most of them at its Austin<br />
headquarters. Also on tap is combining real estate and franchise licensing functions as well as franchisee training and<br />
franchise field services. Other plans call for outsourcing quality inspections, restaurant audits and functions such as Web site<br />
support, creative services and market research. Schlotzsky’s said results stemming from the changes would become apparent<br />
in the fourth quarter and throughout 2004. It predicted that “key drivers” of growth will be franchise restaurant “reimaging”<br />
through a new Concept 2005 store design and menu. (NDNF 8/1/03)<br />
Schlotzsky’s for the quarter ended September 30, reported same-store sales decreased 10.6%. (Restaurant Business Daily<br />
News 11/17/03)<br />
Schlotzsky’s reported that franchisees of its new bakery-café prototype are experiencing positive results, with some units<br />
reporting a double-digit swing in sales. With 13 locations and another 25 in development, the prototype features a more<br />
upscale décor, food served on china, limited table-service and an expanded menu that includes such items as hot panini<br />
sandwiches, stuffed baked potatoes and salads. (NDNF 10/29/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
582
Seattle's Best Coffee<br />
Headquarters<br />
413 Pine St. Suite 500, Seattle, Washington 98101 USA<br />
Tel: (206) 624 8858 Fax: (206) 254 7262<br />
www.seabest.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 57,000 38,700 38,000<br />
Company-owned ($000) 32,000 27,700 29,000<br />
Franchised ($000) 25,000 11,000 9,000<br />
U.S. Number of Units 147 122 107<br />
Company-owned 76 77 71<br />
Franchised 71 45 36<br />
International Sales ($000) 20,000 11,000 7,000<br />
International Units 70 54 25<br />
Average Sales/Unit ($000) 430 440 408<br />
Concept Positioning |<br />
Seattle Coffee Co. owns, operates and franchises two chains of specialty coffee cafes and kiosks. Its Seattle’s Best Coffee<br />
grouping is an important vehicle to create trial and esteem for its proprietary Seattle's Best Coffee brand. Featuring a limited<br />
menu of coffee and baked goods, its coffee beverages account for some 65% of sales and baked goods another 15%. Whole<br />
bean and merchandise sales account for the rest of the mix.<br />
Typically, the cafes measure 1,300 sq. ft. and seat 40 patrons. Its current prototype has dark woods with metal tones, wood<br />
floors and painted murals. Its kiosk operations are largely located in nontraditional sites ranging from airports, travel and<br />
convention centers to business offices and colleges and universities.<br />
Seattle’s Best also owns and operates the Torrefazione Italia chain of coffee cafes. Considered slightly more upscale than<br />
other coffee retailers, Torrefazione serves its Italian-style blends in hand-painted ceramic cups imported from Deruta, Italy.<br />
Unit ambience suggests the “romance and magic” of authentic European coffee houses. Its signature coffees were created<br />
and brought to the U.S. in 1986 by Umberto Bizzarri, a coffee-roaster from Perugia, Italy.<br />
In addition, the company has a wholesale operation that sells both its Seattle’s Best and Torrefazione coffee products. Total<br />
revenues in 1999 were around $75 million, with wholesale accounting for about two-thirds. It also markets Eddie Bauer Blend<br />
through a joint venture project with retailer Eddie Bauer. And in 1998, signed a licensing agreement with Albertson’s Grocery<br />
Stores that allows the retailer to feature Seattle’s Best Coffee in their own kiosks; units have opened in 73 Albertson’s stores<br />
and continued growth is expected.<br />
The first Seattle’s Best Coffee cafe opened in 1972 by Jim Stewart near Seattle’s Pike Place Market as the outgrowth of his<br />
first shop in Coupeville, WA that started in 1968. In March 1998, AFC Enterprises acquired the company and its wholesale<br />
distribution business. As a wholly-owned subsidiary of AFC Enterprises, Seattle Coffee Company maintains its headquarters in<br />
Seattle and retains its current management team, which includes Stewart, chairman; Jim Clarke, president; and Kim Beach,<br />
chief financial officer.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
583
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Seattle’s Best—variety of hot and cold coffee specialties from 7 signature blends includes lattes, espressos, coffee shakes and<br />
cafe frio. Also assortment of baked goods. Retails whole bean coffees. Check Averages: $2.50–$5.00. Torrefazione Italia–<br />
Variety of hot and cold coffee specialties made from 8 Italian-roasted coffee blends. Also menus assortment of panini<br />
sandwiches, desserts and bakery items.<br />
<strong>Menu</strong> Development |<br />
Seattle’s Best added a line of JavaKula ice-blended beverages to its North American restaurants. Flavors are Toddy Coffee,<br />
Crème Caramel, Chocolate, Double Mint Chocolate Chip and Vanilla Coffee. Non-coffee flavors are Cascade Berry and<br />
Vanilla Bean. A 12-oz. JavaKula averages $2.55. (NRN Daily NewsFax)<br />
News & Other |<br />
Seattle’s Best Coffee plans to step up co-branding with Cinnabon. Both brands are owned by AFC Enterprises. Two cobranding<br />
options are being tested: placing units side by side or building a small café within the bakery concept. Although both<br />
approaches will be used, the mini-café probably will be the major co-branding expansion vehicle, according to Seattle Coffee.<br />
(RB 4/1/03 p27)<br />
Seattle’s Best Coffee planned to add a line of ice-blended beverages called JavaKula to its menus in mid-May. Flavors are<br />
Toddy Coffee, Creme Caramel, Chocolate, Double Mint Chocolate Chip and Vanilla Coffee. In addition, two non-coffee options<br />
will be offered: Cascade Berry and Vanilla Bean. A 12-oz. JavaKula will have an average price of $2.55. A money-back<br />
guarantee is being offered to support SBC’s claim that the new drinks taste better than any other cafe’s ice-blended<br />
beverages. (NDNF 5/7/03)<br />
Delaware North Cos. Parks & Resorts chose Seattle Coffee Co. to be its exclusive coffee supplier. The deal calls for the<br />
contract firm to serve Seattle’s Best Coffee and Torrefazione Italia Coffee at all of its locations, including the Grand Canyon,<br />
Yosemite National Park, Yellowstone National Park and the Kennedy Space Center Visitor Complex. The program begins with<br />
the 2003 season. In related news, Gordon Biersch Brewery Restaurant Group will serve Seattle’s Best Coffee on an exclusive<br />
basis at its 25 locations nationwide. And finally, Seattle Coffee plans to begin offering its new Fair Trade Blend at colleges and<br />
universities. (NRN 3/31/03 p50, 3/17/03 p82 & 4/7/93 p54)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
584
Shari's Restaurants<br />
Headquarters<br />
8205 S.W. Creekside Place, Beaverton, Oregon 97008 USA<br />
Tel: (503) 605 4299 Fax: (503) 605 4291<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 140,287 144,020 140,182<br />
Company-owned ($000) 140,287 144,020 140,182<br />
Franchised ($000) - - -<br />
U.S. Number of Units 98 100 98<br />
Company-owned 98 100 98<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,421 1,445 1,430<br />
Concept Positioning |<br />
Shari's Restaurants are 24-hour coffee-shop units that offer full-service for breakfast, lunch and dinner. Dinner is its biggest<br />
day part. It is the largest full service restaurant chain in the Pacific Northwest.<br />
The chain's unique feature is its patented hexagonal building design created by the chain's founder. Buildings average 3,900<br />
sq. ft. and seat 130 customers. This design offers an atmosphere more comfortable and intimate than that of most coffee<br />
shops and creates a more efficient building to operate.<br />
Shari's was founded in the late 1970's. The company was purchased through a leveraged buyout in June 1989 with the<br />
surviving corporation being Shari's Management Corp. In early 1999, the company was acquired by Fairmont Capital and its<br />
senior executives including Larry Curtis, president, and Ray Damron, chief financial officer. The deal was worth about $60<br />
million.<br />
<strong>Menu</strong> Positioning |<br />
Offers broad-based traditional 150-item family style menu of entrees, hamburgers, sandwiches, salads, seafood and soups.<br />
Also menus desserts especially soda fountain favorites. Breakfast available anytime. Has separate kids and Honored Citizens<br />
(over 55) menus. <strong>Menu</strong> Prices: $2.85–$10.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
585
Personnel |<br />
Michael Gibbons, Chief Executive Officer<br />
Larry Curtis, President<br />
Ray Damon, Chief Financial Officer<br />
Glenn Morley, Vice President of Operations<br />
Craig Kessler, Vice President of Operations<br />
Matt Corbin, Vice President of Marketing<br />
Kevin Bechtel, <strong>Menu</strong> Development/R&D<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
586
Shoney's<br />
Headquarters<br />
1717 Elm Hill Pike P.O. Box 1260, Nashville, Tennessee 37210 USA<br />
Tel: (615) 391 5201 Fax: (615) 231 2531<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 540,000 619,682 722,218<br />
Company-owned ($000) 280,000 336,462 376,623<br />
Franchised ($000) 260,000 283,220 345,595<br />
U.S. Number of Units 350 389 459<br />
Company-owned 170 194 245<br />
Franchised 180 195 214<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,495 1,526 1,537<br />
Concept Positioning |<br />
Shoney's are full-service family restaurants with a customer base between 25–65 years of age. Units serve breakfast, lunch<br />
and dinner and are generally open 18 hours daily.<br />
Shoney's are typically freestanding restaurants; the current design seats 174 patrons. Units feature large windows, indoor and<br />
outdoor lights, awnings, live plants and framed photos. An ongoing redesign program calls for carpeting and partitioned areas<br />
for a more private dining experience. Other additions will be its Pie Shoppe, a larger waiting area, flexible lighting patterns and<br />
new interiors featuring warmer colors and textures. The company recently introduced Family Fun Night, a family-centered<br />
evening featuring clowns, face painting, balloon animals and prize give-aways.<br />
In response to needs for smaller markets, Shoney's developed a 120-seat prototype in 1994. The unit costs 25% less to build<br />
than its regular prototype.<br />
In 1953, Alex Schoenbaum opened his first Shoney's as a Big Boy in Charleston, WV, with the right to develop 10 states. Ray<br />
Danner opened his first Shoney's in Madison, TN, under a franchise agreement with Schoenbaum in 1959. The two joined<br />
forces in 1971 and became Shoney's, Inc. in 1976. In 1984, the company terminated its affiliations with the Big Boy name<br />
(Shoney's had been the largest licensee in that system) and the brand became known as just Shoney’s. In 2002, Shoney's<br />
merged with an affiliate of Dallas based Lone Star U.S. Acquisitions, LLC and U.S. Restaurant Properties in a cash transaction<br />
taking the company private.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: All-you-can-eat breakfast, soup, salad and fruit bars. Friday Night Seafood Buffet. Traditional broad-based<br />
family dining menu. Entrees include turkey and dressing, chicken or shrimp fettuccine and shrimp stir fry; also steak, chicken,<br />
seafood, hamburgers and sandwiches. Wide range of side dishes such as fried okra and cheesy potato casserole and salads.<br />
Also features breakfast bar; upgraded breakfast bar offers brand name items. <strong>Menu</strong> Prices: $2.99–$11.99. Check Average:<br />
$7.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
587
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Shoney’s is tapping into the entrée salad trend with the launch of eight gourmet salads. Priced at $5.99, offerings include<br />
Chicken Caesar, Spicy Popcorn Shrimp and a Seafood Salad Royale. (Nation’s Restaurant News, 6/2/03, p34)<br />
Shoney’s rolled out a new kids’ menu. Offerings include fish-shaped Funny Fish Nuggets; Chicken Nuggets shaped like stars<br />
and chicken legs; Shoney Bear Pancakes in the shape of a bear face; and Muddy Bears Dessert, a blend of chocolate<br />
pudding, whipped cream and cookies topped with gummy bears. (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 12/17/03)<br />
Personnel |<br />
Rodger Head, President<br />
V. Michael Payne, Chief Financial Officer<br />
Ron Long, Director of Purchasing<br />
Denise Horne, Vice President of Marketing<br />
Charles Moss, Vice President of Operations<br />
Joe Phraner, Vice President of Operations<br />
Michael Cotter, Vice President of Operations<br />
Hissong G. Michael, Vice President of Operations<br />
News & Other |<br />
Shoney’s Restaurants has signed supply agreements with S&D Coffee and Breyer’s Ice Cream for its 350 company-owned<br />
and franchised locations across the country. S&D Coffee, Concord, NC, will supply a proprietary blend of coffee called<br />
Shoney’s Fresh Roast. Breyer’s already is supplying more than 75 Shoney’s restaurants with standard flavors as well as butter<br />
pecan, mint chocolate chip and Oreo. (NRN 9/15/03 p58)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
588
Sirloin Stockade<br />
Headquarters<br />
2908 N. Plum, Hutchinson, Kansas 67502 USA<br />
Tel: (620) 669 9372 Fax: (620) 669 0531<br />
Ownership: Private<br />
Segment: Limited Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 56,000 60,000 67,000<br />
Company-owned ($000) 1,900 2,000 4,000<br />
Franchised ($000) 54,100 58,000 63,000<br />
U.S. Number of Units 39 40 47<br />
Company-owned 1 1 2<br />
Franchised 38 39 45<br />
International Sales ($000) 26,500 21,600 19,000<br />
International Units 14 13 10<br />
Average Sales/Unit ($000) 1,400 1,400 1,999<br />
Concept Positioning |<br />
The Sirloin Stockade restaurant chain is designed to offer customers a casual, quick and inexpensive meal. These familyoriented<br />
steakhouses are open for lunch and dinner. The concept combines the best of self-service with friendly, attentive<br />
service at the table. Patrons place their orders upon entering the restaurant, from a wall-mounted illustrated menu board,<br />
select their choices from the salad bar, buffet and bakery; their main entree is brought directly to the table.<br />
All steaks are fresh cut and grilled from naturally aged, USDA inspected beef. Its buffet is designed to offer a complete meal<br />
without customers having to order an entree from its main menu.<br />
The freestanding units average 8,300–10,000 sq. ft., seating 300– 400 persons. In addition, a bakery kiosk is located in the<br />
dining room.<br />
The company was founded in 1966 in Oklahoma City by Bill Keele. After a number of parent companies, a group of Sirloin<br />
Stockade franchisees bought the concept in 1984. Franchising was resumed in 1985. In 2000, Sirloin Stockade International<br />
changed its name to Stockade Companies, Inc. to better reflect its diversity. Current management includes Gale Premer,<br />
chairman and chief executive officer.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: 6-oz. sizzling Sirloin steak; priced at $5.99. "Buffet-Steaks-Bakery" includes fresh vegetables and prepared<br />
salads, hot side dishes and daily specials such as carved roast beef and ham, chicken and fish, lasagna, meat loaf, chicken<br />
wings, etc. Fresh bakery items include hot rolls, muffins, cookies, brownies, cobblers and cinnamon rolls. Desserts include soft<br />
serve ice cream, yogurt and sundae toppings. Entrees priced with or without buffet. No liquor service. <strong>Menu</strong> Prices: $5–$8.<br />
Check Averages: $6.30.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
589
Smith & Wollensky<br />
Headquarters<br />
1114 First Ave., New York, New York 10021 USA<br />
Tel: (212) 838 2061 Fax: (212) 355 0120<br />
Ownership: Public<br />
Segment: Multiple Concepts Steak - Fine Dining<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 122,310 115,619 133,303<br />
Company-owned ($000) 77,310 70,619 81,463<br />
Franchised ($000) 45,000 45,000 51,840<br />
U.S. Number of Units 15 14 14<br />
Company-owned 10 9 9<br />
Franchised 5 5 5<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 8,167 7,838 9,051<br />
Concept Positioning |<br />
Smith & Wollensky Restaurant Group owns and/or operates white tablecloth restaurants under a variety of names including<br />
Cité, Cité Grill, Park Avenue Cafe, Mrs. Park’s Tavern, Smith & Wollensky, The Post House, Maloney and Porcelli and<br />
Manhattan Ocean Club.<br />
Units vary in size and decor. The flagship concept is Smith & Wollensky, a steakhouse that features prime grade, dry-aged<br />
beef, fresh vegetables, pastries made on-premise and an extensive list of fine wines. Open for lunch and dinner, its two-story<br />
dining room seats over 400; annual unit volume is more than $22 million. While the main dining room has a traditional<br />
masculine look and feel, it also has a lower-priced, limited menu grill room and an outdoor dining area that are more casual. In<br />
addition, it added a small retail section in 1997 that sells not only suede jackets, umbrellas, etc. but also prime beef. Estimates<br />
indicate the 350 sq. ft. area will bring in about $500,000 in sales.<br />
The Smith & Wollensky concept is considered its primary expansion vehicle.<br />
The Park Avenue Café in New York, and its counterpart in Chicago that also includes Mrs. Park's Tavern, is considered<br />
another expansion vehicle. Its decor focuses on Americana with displays of antique toys and American folk art and use of<br />
mismatched plates.<br />
Alan Stillman, the restaurateur credited with the development of casual-dining and creator of T.G.I. Friday’s, opened the first<br />
Smith & Wollensky in 1977. Its parent company was created in early 1996 and 25% of it was sold to Thomas H. Lee Co.,<br />
Boston, to help speed expansion. In late 1999, the company changed its name to Smith & Wollensky Restaurant Group to<br />
better reflect its flagship chain brand. In mid-2001, the company introduced its IPO and took the company public.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
590
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Smith & Wollensky—Signature items: steaks ranging from Chateaubriand to filet au poivre and double sirloins and lobsters in<br />
5 and 10 lb. sizes. Now offers “Steaks to Go”— shipped anywhere in the continental U.S. with selected ala carte items via<br />
internet or telephone. Check Averages: $58. Park Avenue Cafe/Mrs. Park's Tavern—New American including entrees such as<br />
rosemary barbecue lamb shank or chili-rubbed roast chicken as well as appetizers, raw bar selections, sandwiches and sides.<br />
Check Averages: $68.<br />
Personnel |<br />
Alan Stillman, Chairman<br />
Jim Dunn, President<br />
Alan Mandel, Chief Financial Officer<br />
Dave Terry, Vice President of Operations<br />
Mike Byrne, Vice President of Operations<br />
Mike Grossbard, Director of Purchasing<br />
Jessica Bride, Director of Marketing<br />
David Burke, <strong>Menu</strong> Development/R&D<br />
Smith & Wollensky Restaurant Group appointed Kevin Zraly to the post of vice president. Zraly was the wine director at<br />
Windows on the World from 1976 to 2001. (Restaurant Business 09/11/03)<br />
News & Other |<br />
Smith & Wollensky reported same-store sales increased 14% for the four-week period ended August 25. Sales also rose 22%<br />
compared to sales during the same period last year. (NRN Daily NewsFax 9/5/03)<br />
Smith & Wollensky Restaurant Group Inc. reported same-store sales increased 14% for the four-week period ended August<br />
25. Total-restaurant sales increased 22% compared to the same period a year ago. (Nation’s Restaurant News 9/15/03 p12)<br />
Smith & Wollensky Restaurant Group for the third quarter ended September 29, reported sales increased 22% to $21.1 million<br />
compared to the same quarter a year ago for the third quarter ended September 29. Sales at company-owned restaurants<br />
increased 17% in the same quarter. (NRN Daily NewsFax 10/6/03)<br />
Smith & Wollensky Restaurant Group is replacing its international wine list with a list dedicated exclusively to American wines.<br />
The company also announced that it hired wine authority Kevin Zraly, the former wine director at Windows on the World, as a<br />
vice president of the chain. (NRN 9/29/03 p66)<br />
Smith & Wollensky Restaurant Group for the four weeks ended October 27, reported same-store sales increased 16%. (NRN<br />
Daily NewsFax 11/10/03)<br />
Smith & Wollensky Restaurant for the four weeks ended November 24, reported that same-store sales increased 14.5%. (NRN<br />
Daily NewsFax 12/3/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
591
Smokey Bones BBQ<br />
Headquarters<br />
5900 Lake Ellenor Drive, Orlando, Florida 32809-3330 USA<br />
Tel: (407) 245 4000 Fax: (407) 245 6648<br />
www.smokeybones.com<br />
Ownership: Public<br />
Segment: Full Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 55,000 27,600 9,000<br />
Company-owned ($000) 55,000 27,600 9,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 27 16 7<br />
Company-owned 27 16 7<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,900 2,800 1,285<br />
Concept Positioning |<br />
Smokey Bones BBQ & Sports Bar is a casual dining restaurant with 21 locations in the Midwest and South, including six in<br />
Florida and five in Illinois. The format is a rustic lodge with wooden beans dominating the décor.<br />
Smokey Bones is owned by the Darden Restaurants chain, which also operates the Red Lobster, Olive Garden and Bahama<br />
Breeze formats.<br />
<strong>Menu</strong> Positioning |<br />
Barbecued ribs, pork and chicken fill the menu, with the smoked St. Louis style barbecue ribs the dominant item. The Big<br />
Platters offer combo means of chicken and ribs, as well as large portions of any main entrée. The menu also highlights its<br />
carryout and catering business, where groups of 100 or more are invited to place an order. Prices for entrees range from $8.79<br />
for the hand-pulled pork platter to $16.99 for the full slab of St. Louis-style ribs.<br />
Expansion Plans |<br />
Darden Restaurants said it acquired three Don Pablo’s restaurant locations and one Hops unit from Avado Brands. The units<br />
will be converted to the Smokey Bones BBQ Sports Bar concept. The Don Pablo’s sites are in Greensboro, NC; Bowie, MD;<br />
and Youngstown, OH. The Hops site is in Columbus, OH. Terms were not revealed. Darden’s other brands are Red Lobster,<br />
Olive Garden and Bahama Breeze. (NRN 3/10/03 p77)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
592
<strong>RISE</strong> COMPANY PROFILE<br />
Smokey Bones BBQ Sports Bar parent Darden Restaurants will open 20–25 more of the barbecue restaurants in the current<br />
fiscal year. In the fiscal year that ended in May, it opened 20 units, for a total count of 34 units in 14 states. A company official<br />
predicted that in eight years, the four-year-old concept would number 250 stores. Its ribs sell well in the Chicago area, and<br />
pulled pork is popular in the South. In New England, chicken is the top barbecue protein. Currently being tested are a chicken<br />
potpie and a light grilled chicken breast with cucumber relish. In addition, it is increasing its variety of fresh vegetables and<br />
adding steaks to the menu. (Nation’s Restaurant News)<br />
Personnel |<br />
Smokey Bones promoted Chip Wade to senior vice president of development for 44-unit Smokey Bones. Previously, Wade<br />
was the chain’s vice president of development (Nation’s Restaurant News 9/15/03 p62)<br />
Smokey Bones appointed Greg Watson vice president of marketing. Previously, Watson was vice president of brand<br />
marketing for Olive Garden. (NRN Daily NewsFax 12/8/03)<br />
News & Other |<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Emerging barbecue concepts show that a broader take on an old favorite helps maintain consumers’ interest. Nowadays it<br />
seems safer to refer to them as “grill concepts” because many new chains defy traditional notions of barbecue. Given<br />
barbecue’s outdoor origins, it typically has an informal image. A few new chains, like Rib Crib Barbecue (23 units), are<br />
succeeding with the tried and true hickory or mesquite-based barbecue menu, casual-dining format and a down-home<br />
Southern or Western décor. Several concepts, however, have shed the relaxed, checkered-tablecloth image and incorporated<br />
various grilling styles in other service formats. For instance, Chef Waldy Malouf’s Beacon (2 units) is a barbecue-focused, finedining<br />
concept that features primitive grilling methods. It showcases open-pit wood-burning fires amid a stylish ambience of<br />
multi-tiered dining areas, dim lighting, French terra cotta tiling and Mission-style furniture. Checks average $60. Although<br />
casual, Weber Grill (3 units) broke the mold by bringing its famous charcoal kettle grills indoors and creating a comfortable,<br />
simple décor of dark woodwork and cozy booths. (Both concepts feature exhibition kitchens, another trend.) Darden<br />
Restaurants’ Smokey Bones BBQ (17 units) also created a new take on the category’s informal image by showcasing it in a<br />
sports pub atmosphere with St. Louis-style items. Memphis-style barbecue is featured amid a fun Blues music-themed décor<br />
at Red Hot & Blue (36 units). Twists on barbecue fare include new grilling and ethnic styles: Hawaiian barbecue is at the<br />
limited service L&L Hawaiian Barbecue (63 units); Mongolian barbecue is at Genghis Grill (8 units), where diners create their<br />
own stir fry that is prepared on a 650-degree grill in less than a minute; hardwood fire barbecue is 11-unit Whiskey Creek<br />
Steakhouse’s specialty (profiled in this issue); Ted’s Montana Grill (6 units) recently added barbecue bison short ribs to its<br />
menu; and Stonewood Tavern & Grill (10 units) offers specialties prepared in an oak grill. Change is in the air when even a<br />
major chain like Damon’s Grill, famous for its barbecued ribs, announces menu repositioning to include a larger range of grilled<br />
items such as spicy grilled shrimp. The restaurant industry’s barbecue category has targeted consumers’ interest in ethnic and<br />
spicy foods, exhibition cooking, and formats that serve multiple schedules. Diners’ increasingly sophisticated tastes inspire<br />
more mature décor and menus that challenge the stereotypical barbecue image and still draw traffic.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
593
<strong>RISE</strong> COMPANY PROFILE<br />
Nation’s Restaurant News (NRN) recently announced the winners of its 2003 Hot Concepts! Awards. Having profiled each of<br />
the concepts soon after they hit the ground running, <strong>Technomic</strong> Information Services agrees with NRN’s choices and,<br />
naturally, we can’t help but examine what they teach us about the emerging chain business. The NRN 2003 Hot Concepts!<br />
are: • Fogo de Chao—four units; an all-you-can-eat Brazilian casual dining chain • Grand Lux Café—three units; an offshoot of<br />
The Cheesecake Factory featuring global cuisine • Pei Wei Asian Diner—21 units; P.F. Chang’s quick-casual pan-Asian<br />
concept • Raising Cane’s Chicken Fingers—12 units; a limited-service chain with a basic menu of chicken fingers • Smokey<br />
Bones BBQ—34 units; Darden Restaurants’ barbecue concept that has a sports bar theme • Ted’s Montana Grill—eight units;<br />
media mogul Ted Turner’s bar and grill concept featuring bison • Arby’s—3,300 units; while not an emerging concept, NRN<br />
recognizes how the chain has reinvented itself by developing its Market Fresh line of deli-style sandwiches and, more recently,<br />
a new prototype, cooking system and humorous ad campaign. At first glance, it is difficult to see one quality that these<br />
concepts share. But they each have successfully filled a niche in the chain restaurant industry, and they developed a clear<br />
identity backed by likable food. Whether a barbecue restaurant that offers sports-bar amenities or a bar and grill serving bison,<br />
these chains have been leaders in some way. For example, Pei Wei Asian Diner along with, of course, Pick Up Stix (78 units)<br />
have been forerunners in the promising quick-casual Asian category, and several chains are following, like Yan Can. In<br />
claiming a niche, emerging concepts always face and put forth challenges, such as convincing the public to try bison or a<br />
Brazilian buffet or to become regulars at a restaurant that stakes its entire business on one item, the chicken finger. Boston<br />
Market, often credited as one of the first quick-casual concepts, put forth a challenge to diners last month with its new concept<br />
Rotisserie Grill (profiled in this issue). The concept is elevating quick-casual’s image by serving diners’ meals on real china,<br />
upgrading decor and offering table service for desserts and alcoholic beverages. Yet it maintains quick-casual’s prices and<br />
general counter service. Will diners bite? The above-mentioned chains took risks and took the lead. With careful trend<br />
research, a quality product, and strong leadership, the gamble rarely seems as great as the final rewards.<br />
Smokey Bones parent Darden Restaurants will open 20–25 more of the barbecue restaurants in the current fiscal year. In the<br />
fiscal year that ended in May, it opened 20 units, for a total count of 34 outlets in 14 states. A company official predicted that in<br />
eight years, the four-year-old concept will probably number 250 stores. The concept’s protein sales mix varies by region as<br />
well. Ribs sell well in the Chicago area, while in the South pulled pork is popular. In New England, chicken is the top barbecue<br />
protein. Currently being tested are a chicken potpie and a light grilled chicken breast with cucumber relish. In addition, it is<br />
increasing its variety of fresh vegetables and adding steaks to the menu. (NRN 5/12/03 p60)<br />
Smokey Bones expects to debut in Memphis in September in the southeast part of the city in a location that formerly housed a<br />
Cooker restaurant. Parent Darden Restaurants said that it expects the 39-unit chain to have significant growth potential,<br />
similar to its Red Lobster and Olive Garden brands. (NRN 6/16/03 p4)<br />
Darden Restaurants bought five Rio Bravo restaurants from Chevys Inc. It plans to convert three of the sites—located in<br />
Grand Rapids, MI; Springfield, MO; and Morrow, GA—into Smokey Bones Barbeque restaurants. A unit in Strongsville, OH,<br />
will become a Red Lobster and one in Dunwoody, GA, will house an Olive Garden. Over the next 12 months, Darden said it<br />
plans to invest more than $2.5 million for renovations in each location and it will hire 100 employees for each restaurant.<br />
(NDNF 8/1/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
594
Smoothie King<br />
Headquarters<br />
2400 Veteran Blvd. Suite 110, Kenner, Louisiana 70062 USA<br />
Tel: (504) 467 4006 Fax: (504) 469 1274<br />
www.smoothieking.com<br />
Ownership: Private<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 105,000 92,000 90,500<br />
Company-owned ($000) 1,000 1,000 1,000<br />
Franchised ($000) 104,000 91,000 89,500<br />
U.S. Number of Units 288 275 270<br />
Company-owned 2 2 2<br />
Franchised 286 273 268<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 375 375 499<br />
Concept Positioning |<br />
Smoothie King markets a creamy drink blended with real fruit, fresh juices and a variety of protein powders and nutritional<br />
vitamins, herbs and other all-natural ingredients in a wide array of flavors. Guests choose from 40 original smoothies that have<br />
one gram of fat or less. The beverages are blended fresh and custom-made to order. The chain is uniquely positioned as<br />
much as a nutrition store as it is a restaurant. While each smoothie created has a distinct flavor, the beverages are designed<br />
to help boost and develop immune systems, lose weight, gain weight or increase muscle mass.<br />
Typically located in high-traffic areas such as strip centers, malls, office parks, college and university campuses, , Smoothie<br />
King divides its operational base so that entrances are dedicated to nutritional retail supplements and the smoothie bar is<br />
positioned at the back of the store where the drinks are served and prepared from behind a long bar. Decor includes natural<br />
wood shelving, light pink walls and mauve-colored tile. Little seating is available in the 1,000–1,200-sq. ft. environments.<br />
Smoothie King first opened in 1973 in Metairie, LA, and was developed by Steve and Cynthia Kuhnau. In 1989, the first<br />
franchise was sold. Today the franchise has over 290 units with 45 under development.T<br />
he chain has been rated number one in its category by Entrepreneur every year since 1992 and was also ranked the number<br />
one small business in America in 2002 by Small Business Opportunities Magazine.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: more than 50 different smoothies in 20-oz., 32-oz. and 40-oz. sizes. Other complementary products to the<br />
core smoothies include KingStix Gourmet Stuffed Breadsticks with flavors like Vegetarian Pizza, Spinach & Feta, Santa Fe,<br />
and Apple Cinnamon for breakfast, lunch or dinner, low-fat muffins, high protein cookies and energy bars. Eight different<br />
specially formulated smoothie "extras" are also offered called Individually Designed (I.D.) Formulas, ranging from Energy<br />
Boost, Diet Down, Stress Relief, Female Fit, Muscle Builder to the The Works (multi-vitamin)—all extras may be added and<br />
personalized to any smoothie flavor. <strong>Menu</strong> Prices: $1.99–$8.99. Check Averages: $3.99.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
595
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Smoothie King rolled out a new low-carbohydrate, high-protein line of drinks. The 20-oz. version of the drinks contains 225<br />
calories, with 10 grams of carbohydrates, 35 grams of protein and 6 grams of fat. Flavors are chocolate, vanilla, strawberry<br />
and banana. The 20-oz. drink is $4.25; 32 oz., $5.75; and 40 oz., $7.99. (Nation’s Restaurant News 11/17/03 p29)<br />
International Activities |<br />
Smoothie King Franchises opened its first international outpost in Seoul with Pacific Smoothies and its operating joint venture<br />
in Korea, Smoothies Korea. The franchisee said it has exclusive development rights to the country and plans to open at least<br />
50 units in the area over the next five years. Smoothie King franchises 324 smoothie shops in 33 states and Washington, DC.<br />
(NDNF 7/3/03)<br />
News & Other |<br />
Smoothie King rolled out a new low-carbohydrate, high-protein line of drinks. The 20-oz. version of the drinks contains 225<br />
calories, with 10 grams of carbohydrates, 35 grams of protein and 6 grams of fat. Flavors are chocolate, vanilla, strawberry<br />
and banana. The 20-oz. drink is $4.25; 32 oz., $5.75; and 40 oz., $7.99. (NRN 11/17/03 p29)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
596
Sonic Drive-Ins<br />
Headquarters<br />
101 Park Ave., Oklahoma City, Oklahoma 73102 USA<br />
Tel: (405) 280 7654 Fax: (405) 290 7487<br />
Ownership: Public<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,241,961 2,016,313 1,811,411<br />
Company-owned ($000) 340,560 283,622 227,544<br />
Franchised ($000) 1,901,401 1,732,691 1,583,867<br />
U.S. Number of Units 2,573 2,357 2,219<br />
Company-owned 460 393 319<br />
Franchised 2,113 1,964 1,900<br />
International Sales ($000) 1,217 - -<br />
International Units 3 - -<br />
Average Sales/Unit ($000) 907 880 713<br />
Concept Positioning |<br />
Sonic Corp. owns, operates and franchises Sonic Drive-In Restaurants, the largest drive-in chain in the U.S. Stores are open<br />
seven days a week, typically from 10:00 a.m. to 11 p.m. for lunch, dinner and snacks. The units offer drive-in and carryout<br />
service, with roller-skating carhops bringing orders carside. Foods are cooked-to-order with the average service time being<br />
under four minutes. The primary customer base consists of the 18–35 year old age group and young families.<br />
Sonic units are drive-ins with a 1950s image. Canopied stalls contain menu boards and speaker phones. Only a few units<br />
have indoor seating and these units are being monitored to determine customer preferences. Testing of mall and strip center<br />
locations has been underway for several years. In addition, its company units have drive-through windows; most also have<br />
patio seating areas.<br />
In fiscal 1997, Sonic began a retrofit program that included new signage, menu and speaker housings as well as a change in<br />
building appearance and logo. All new units will carry this design. Sonic also began a franchisee roll out of the program in<br />
1998. At the end if fiscal 1999, more than two-thirds of all Sonic units had completed the retrofit. The company has also been<br />
introducing a breakfast menu to its units since 1999. All units will eventually offer the breakfast menu.<br />
The business dates back to 1953, when Troy Smith Sr. and Charles Pappe opened a walk-up restaurant in Shawnee, OK; it<br />
became Sonic Drive-In in 1958. The present corporation was organized in 1973 as a public company. It was taken private in a<br />
leveraged buyout by senior management and outside investors in 1986 and then issued an IPO in February 1991, under the<br />
name Sonic Corp.<br />
<strong>Menu</strong> Positioning |<br />
Hamburgers and cheeseburgers, foot-long Coney dogs, fish and chicken sandwiches, fries, hand-battered onion rings, tater<br />
tots, milkshakes, ice cream, and nonalcoholic beverages. Signature dessert: the BLAST (ice cream, cookies and candy). Also<br />
menus slushes, cherry limeades, frozen and fountain items and soft-serve. Some latitude allowed for regional favorites. Check<br />
Averages: $3.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
597
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Sonic is expanding its new breakfast program systemwide this month. The chain first began testing breakfast in 1999 and<br />
currently offers it in about half of its stores. (Restaurant Business Daily News)<br />
Sonic Corp. planned to expand its breakfast program systemwide by the end of March. This involves 1,300 outlets in 68<br />
markets. Breakfast already had been introduced at 400 Sonic units. (NDNF 2/27/03)<br />
Personnel |<br />
J. Clifford Hudson, Chairman<br />
Pattye Moore, President<br />
W. Scott McLain, Chief Financial Officer<br />
Stephen Reed, Director of Purchasing<br />
Richard Schwabauer, Vice President of Operations<br />
Gregory Haflich, Vice President of Marketing<br />
News & Other |<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
598
<strong>RISE</strong> COMPANY PROFILE<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
Sonic Corp. for the fourth quarter ended August 31, reported systemwide sales increased 6.6% to $675 million and same-store<br />
sales decreased 0.7%. Earnings from operations increased 7.5% to $17.5 million. Revenues rose 12.6%. (NRN Daily<br />
NewsFax 10/16/03)<br />
P.F. Chang’s China Bistro was the highest-ranked restaurant company on Forbes magazine’s “200 Best Small Companies” list<br />
this year. It ranked No. 24 and was followed by Krispy Kreme Doughnuts at No. 29. Also on the list were Sonic Corp., Total<br />
Entertainment Restaurant Corp., Panera Bread, California Pizza Kitchen and IHOP Corp. (NDNF 11/19/03)<br />
Sonic will offer Spanish vocabulary flash cards in its Wacky Pack Kid’s meal in January as an effort to offer educationalfocused<br />
prizes in 2004. (NRN Daily NewsFax 12/30/04)<br />
Sonic Corp. for the first quarter ended November 30, reported a 20% increase in net income to $12.8 million from $10.6 million<br />
from the same period last year. (NRN Daily NewsFax 1/7/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
599
Sonny's Real Pit BBQ<br />
Headquarters<br />
2605 Maitland Center Pkwy Suite C, Maitland, Florida 32751-7139 USA<br />
Tel: (407) 660 8888 Fax: (407) 660 1305<br />
Ownership: Private<br />
Segment: Full Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 242,431 221,552 203,200<br />
Company-owned ($000) 35,175 25,720 24,950<br />
Franchised ($000) 207,256 195,832 178,250<br />
U.S. Number of Units 150 143 123<br />
Company-owned 19 12 12<br />
Franchised 131 131 111<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,635 1,710 2,079<br />
Concept Positioning |<br />
Sonny's Real Pit Bar-B-Q, a chain of midscale family restaurants, specializes in barbecue. While units offer full-service dining<br />
for both lunch and dinner, the concept is also akin to quick-service operations because of its service speed. In addition, the<br />
chain does significant take-out and off-premise catering and believes that portion of the business will help strengthen its<br />
average unit sales volumes.<br />
The typical unit measures approximately 5,800 sq. ft. and seats approximately 180. Exteriors are rustic red, with brick accents<br />
and contrasting wood trim. The roof is usually rimmed in neon and dominated by a large chimney. Interiors use earth colors to<br />
achieve a rustic, home-style look. Newer units include both booth and chair seating.<br />
Floyd E. "Sonny" Tillman opened the first Sonny’s in Gainesville, FL, in 1968. Growth has been primarily through franchising.<br />
The corporation was acquired in December 1988 and resold in 1991 to an ownership group headed by Robert Yarmuth, the<br />
Orlando franchisee, and renamed Sonny's Franchise Co. Since that time, management efforts have centered on improving<br />
franchisee relations, solidifying company standards, and formalizing systemwide marketing programs that support future<br />
growth and expansion.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Southern style sliced beef, pork (and pulled) and barbecue chicken and ribs and Sonny's award winning Bar-B-<br />
Q beans. Other popular items include baby-back ribs, smoked turkey, charbroiled chicken breast, 40-item salad bar and<br />
combination platters. Promotes Feast for Four—value meal based on chicken dinner; priced—$22.99. Salad bar all-you-caneat.<br />
Beer served. Check Averages: $6<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
600
Personnel |<br />
Bob Yarmuth, Chairman<br />
David Pearl, Chief Executive Officer<br />
Jeff Yarmuth, President<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
601
Souper Salad<br />
Headquarters<br />
140 Heimer Rd., San Antonio, Texas 78232 USA<br />
Tel: (210) 495 9644 Fax: (210) 495 9655<br />
www.soupersalad.com<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria Buffet<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 105,366 102,867 97,399<br />
Company-owned ($000) 105,366 102,867 97,399<br />
Franchised ($000) - - -<br />
U.S. Number of Units 132 128 127<br />
Company-owned 132 128 127<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 820 805 766<br />
Concept Positioning |<br />
Souper Salad is the nation’s largest all-you-can-eat soup and salad bar chain. Customers serve themselves as much as they<br />
choose, while limited service, by a waitstaff, is provided to help with beverages. The largely serve-yourself format allows for<br />
fast, convenient service as well as for many selections to be priced under $5. Lunch and dinner prices are the same and<br />
selections can be ordered a al carte or in combinations such as salad or soup and sandwich or unlimited trips to a potato bar.<br />
Units are open daily from 10:30 a.m.–9:00 p.m.<br />
The chain draws from 100 original recipes to fill its soup, salad and baked potato bars. Units feature sculpted ceilings, light<br />
colors and contemporary music playing in the background.<br />
Ray Barshick founded the company in Houston in 1978 and, in 1994, sold it to merchant bank Saunders, Karp & Megrue. In<br />
1997, Souper Salad acquired five-unit Denver Salad Co., Denver, and converted those stores to its own brand.<br />
<strong>Menu</strong> Positioning |<br />
Salad bar menus more than 60 fresh items, including desserts and fresh fruit, pasta, marinated and rice salads as well as<br />
dressings. Soup bar section features 4 soups each day from a collection of 40 proprietary recipes. Potato bar includes topping<br />
for oven-baked potatoes. Also menus sandwiches including classic ham and Swiss, mesquite grilled chicken salad and oven<br />
roasted turkey. Meals include freshly baked cornbread, gingerbread and blueberry bread as well as desserts. Children’s menu<br />
also available. <strong>Menu</strong> Prices: most selections under $5.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
602
Personnel |<br />
Richard Kerchenko, President<br />
Clint Shackelford, Chief Financial Officer<br />
Patrick Melton, Vice President of Operations<br />
Al Junes, Director of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Carvel said it signed a deal that calls for the addition of a Carvel soft-serve ice cream station to a Souper Salad in Braintree,<br />
MA. The store was scheduled to open in March. This is the second co-branded unit. Atlanta-based Carvel operates more than<br />
400 dipping shops and Souper Salad, based in Needham, MA, has 10 units in the Boston area. (NRN 3/3/03 p96)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
603
Souplantation/Sweet Tomatoes<br />
Headquarters<br />
15822 Bernardo Center Dr. Suite A, San Diego, California 92127 USA<br />
Tel: (858) 675 1600 Fax: (858) 675 1616<br />
Ownership: Private<br />
Segment: Limited Service Cafeteria Buffet<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 216,102 202,983 173,063<br />
Company-owned ($000) 216,102 202,983 173,063<br />
Franchised ($000) - - -<br />
U.S. Number of Units 95 94 86<br />
Company-owned 95 94 86<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,279 2,245 2,012<br />
Concept Positioning |<br />
Souplantation restaurants offer upscale versions of popular soup and salad-bar service concepts. However, not all units carry<br />
this name. Those located in Florida and the California Bay Area are called Sweet Tomatoes. The cafeteria-like operations,<br />
open for lunch and dinner, control customer flow with floor personnel assigned to help prevent tie-ups at the soup/salad bars<br />
and find seating for patrons. Its soup/salad bar counters are either serviced from the center or arranged in a scatter bar format.<br />
Units are primarily located in shopping centers and average 7,400 sq. ft. with seating for approximately 210 customers. Its<br />
newest units are 7,200 sq. ft. The decor is contemporary with natural colored woods, plants and logo graphics used<br />
throughout. Though the decor is clean and contemporary, the two 55-ft. salad bars located near the entrance of the restaurant<br />
are the centers of each restaurant.<br />
In fiscal 1999, the company opened a test concept called Ladles, A Soup and Salad Takery. The new operation is designed for<br />
busy consumers including on-the-go families and professionals. It is located in the San Diego area and plans call for the<br />
addition three more units in 2000, all in the same market.<br />
Souplantation was founded in 1978. Tony Brooke and Michael Mack, two former management consultants, purchased the twounit<br />
chain in 1983 for $2 million.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: all-you-care-to-eat soup and salad bar; selections change weekly and include some 20 tossed specialty<br />
salads, 50 signature prepared salads, 30 soups and 15 pastas. Rolled out pasta bar that features premise-made pastas and<br />
from-scratch sauces; 3 varieties offered daily. Also menus 3 different muffin varieties each day, focaccia, Caesar, traditional<br />
tossed spinach and wonton chicken salads and frozen yogurt. Beer and wine available in most locations but less than 5% of<br />
sales. <strong>Menu</strong> Prices: $6.19–$7.99; fixed prices vary with location and day part. Check Average: $6.75.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
604
Personnel |<br />
Michael Mack, Chief Executive Officer<br />
David Qualls, Chief Financial Officer<br />
R. Gregory Keller, Senior Vice President of Operations<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Garden Fresh Restaurants is going private in response to an offer from an affiliate of Anaheim, CA-based investment firm<br />
Fairmont Capital Inc. The company operates 97 Souplantation and Sweet Tomatoes restaurants in 15 states. Garden Fresh’s<br />
shareholders, who would receive $16.35 per share under the buyout’s terms, must approve the deal. Following the<br />
announcement of the proposed merger, Garden Fresh shares gained nearly $5 a share in trading, closing that day at $15.91.<br />
(NDNF 10/1/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
605
Spaghetti Warehouse, The<br />
Headquarters<br />
12200 Stemmons Freeway, Suite 100 PO Box 819-017, Dallas, Texas 75234<br />
USA<br />
Tel: (972) 241 5500 Fax: (972) 888 8198<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 62,000 59,000 66,000<br />
Company-owned ($000) 62,000 59,000 66,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 31 28 30<br />
Company-owned 31 28 30<br />
Franchised - - -<br />
International Sales ($000) 17,000 17,000 17,000<br />
International Units 10 10 10<br />
Average Sales/Unit ($000) 2,125 2,107 2,199<br />
Concept Positioning |<br />
Spaghetti Warehouse is a chain of family-oriented, full-service restaurants that feature Italian food. They are open for lunch<br />
and dinner seven days a week. Takeout service is also available. The company developed a newer version with an expanded<br />
menu and is called Spaghetti Warehouse Italian Grill. The Italian Grill units feature a lighter, brighter decor package as well as<br />
a grill, sauté sites and a pizza oven—all designed to increase traffic flow and customer check averages. Existing units are<br />
being converted to this concept and plans call for most of its system to be operated under this name.<br />
Spaghetti Warehouse decor features authentic, unusual and eclectic artifacts and memorabilia, including stained glass<br />
windows, antique furniture and a trolley car. Most are located in distinctive, restored buildings in urban areas and seat<br />
anywhere from 300–600 persons, with an average capacity of 450. They average approximately 15,700 sq. ft. in size. Its new<br />
prototype is approximately 9,600 sq. ft. and seats 300 persons.<br />
The first Spaghetti Warehouse was opened in Dallas in 1972, by company president and founder, Robert R. Hawk. In<br />
September 1985, an initial public offering was made. Its wholly owned subsidiary Old Spaghetti Factory Canada Ltd.<br />
franchises five units in Canada. It also has a 33% stake in Fasta Pasta, a midscale Italian concept being developed in<br />
Australia. Its first franchising began in 1991. In early 1999, Consolidated Restaurants Companies, Inc. completed its<br />
acquisition of Spaghetti Warehouse, thereby taking it private.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
606
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: pasta entrees with choice of sauces and genuine San Francisco sourdough bread. Also pizza, lasagna,<br />
cannelloni, Italian sausage, veal and chicken parmigiana, sandwiches and Caesar and chicken Caesar salads. Entree<br />
selections include bread and soup or salad. Full liquor service available. <strong>Menu</strong> Prices: $3.69–$8.99. Check Averages: $6.73–<br />
$8.64. Italian Grill: Grilled meats and fish, veal marsala, chicken cacciatore, shrimp marinara and Alfredo in addition to<br />
traditional Spaghetti Warehouse menu. Desserts include tiramisu, apple pie, New York-style cheesecake, carrot cake and<br />
spumoni. <strong>Menu</strong> prices: $3.99–$12.99.<br />
<strong>Menu</strong> Development |<br />
Spaghetti Warehouse rolled out its first stand-alone beverage menu in a bid to increase drink sales. The menu offers such<br />
drinks as the Tango-Mango Bellini and Tuscan Sunrise. (NRN Daily NewsFax 11/24/03)<br />
Spaghetti Warehouse rolled out its first stand-alone beverage menu in an effort to drive drink sales. Offerings include a Tango-<br />
Mango Bellini as well as a Tuscan Sunrise creation. (NRN Daily NewsFax 11/24/03)<br />
Personnel |<br />
John Harkey, Chief Executive Officer<br />
Paul Hargett, Chief Financial Officer<br />
E. Gene Street, Chairman<br />
Reuben Lozano, Chef<br />
Bill Watson, Vice President of Marketing<br />
News & Other |<br />
Chevys announced it will be acquired by Consolidated Restaurant Operations, Inc., the operator of eight concepts, including El<br />
Chico, Cantina Laredo, The Spaghetti Warehouse, Good Eats, Cool River Café, III Forks, Lucky's and Silver Fox. Terms were<br />
not disclosed. (Company Release 6/16/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
607
<strong>RISE</strong> COMPANY PROFILE<br />
Specialty Restaurants Dinnerhouses<br />
Headquarters<br />
8191 E. Kaiser Blvd., Anaheim, California 92808 USA<br />
Tel: 714/279 6100 Fax: 714/998 7574<br />
www.specialtyrestaurants.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) - - -<br />
Company-owned ($000) - - -<br />
Franchised ($000) - - -<br />
U.S. Number of Units - - -<br />
Company-owned - - -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
Specialty Restaurants Corp. operates theme dinner houses featuring adventurous or nostalgic motifs including Aviation (94th<br />
Aero Squadron), Mexican (Chili Pepper), and a Colorado mine (Baby Doe's). Other names include Crawdaddy's, Castaway's,<br />
Brittany Hill, Algier's Landing, and Ports 'O Call. The concepts are full-service operations open from 11 a.m. to late evening.<br />
Beer, wine and liquor are served. Food accounts for 80% of business and beverages for 20%.<br />
The 94th Aero Squadron is its largest chain. The restaurants are open for lunch and dinner, and some feature disc jockeys<br />
spinning records from the Swing Era. Later in the evening, the music changes and is geared to specific markets. Most menu<br />
items are prepared fresh daily, including freshly baked breads, desserts and a horseradish sauce for prime rib. Units are<br />
freestanding, with a view of an active airport’s landing strip. Buildings are modeled after a French farmhouse, and interiors are<br />
decorated with artifacts and photographs of World War I and World War II. Dining rooms seat 180, and another 100–120 can<br />
be accommodated in the lounge. Specialty operates an additional 13 airport-themed restaurants under such names as 4th<br />
Fighter Group and 100th Bomb Group.<br />
Restaurants featuring other kinds of themes are situated on a hill with a panoramic view or overlooking water. Baby Doe's<br />
Matchless Mine features a 60-ft.-high mine shaft and gold-mining artifacts. Restaurant and bar seating capacities for these<br />
other concepts range from 140–515 and where available, banquet facilities accommodate parties of 100–1,000.<br />
All purchasing is done at the unit level. However, an East and West Coast supervisor is responsible for menu development in<br />
the region.<br />
David Tallichet Jr. began the business in Long Beach, CA, in 1958, with a restaurant called The Reef. The first 94th Aero<br />
Squadron opened in Denver in 1974. Currently, Tallichet controls 98% of the company.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
608
Spectrum Foods<br />
Headquarters<br />
997 Grandy's Lane, Lewisville, Texas 75077 USA<br />
Tel: (972) 317 8000 Fax: (972) 317 8177<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 38,634 41,054 43,030<br />
Company-owned ($000) 38,634 41,054 43,030<br />
Franchised ($000) - - -<br />
U.S. Number of Units 16 14 12<br />
Company-owned 16 14 12<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,418 3,100 3,585<br />
Concept Positioning |<br />
Spectrum Foods owns and operates a number of specialty restaurants that feature Northern Italian or Mexican cuisines. Multiunit<br />
names include Prego, Tutto Mare and MacArthur Park. Restaurants feature mesquite-grilled steaks and fish. Its Mexican<br />
concept is Guaymas. All units are open for lunch and dinner.<br />
The Prego units average 3,300–6,000 sq. ft. and accommodate 100–130 customers in a spare interior decorated with wooden<br />
furniture. They also feature an exhibition pasta kitchen.<br />
MacArthur Park interiors have sandblasted brick walls and tile and wood flooring. Units vary in size from 185–230 seats.<br />
Guaymas is a Mexican bistro that seats around 150. Its interior features a free-form fireplace that divides its two dining rooms.<br />
White stucco walls, lots of windows, track lighting and scallop-shaped sconces contribute to its overall bright decor that is<br />
reminiscent of a coastal fishing village. Harry's Bar and American Grill is a replica of its namesake in Florence, Italy. There is a<br />
cocktail lounge and a wainscoted dining area that seats 135.<br />
Founded in 1970 with the purchase of Chianti, a Los Angeles landmark founded in 1938, Spectrum Foods was officially<br />
formed in 1972. It was acquired by Saga Corp. in 1984. In August 1986, Marriott Corp. acquired Saga and then sold it to ARG<br />
shortly thereafter.<br />
In May 2000, American Restaurant Group (ARG) announced its intent to sell all but its Stuart Anderson holdings to NBACo,<br />
Inc. in a deal worth $25 million. Anwar Soliman, chairman of ARG was also the principal owner of NBACo. The deal closed in<br />
late June 2000. Current management includes Anwar Soliman, chairman and CEO and Steve Butts, COO.<br />
<strong>Menu</strong> Positioning |<br />
Tutto Mare and Prego—Feature Northern Italian cuisine—everything from imaginative pizzas to Italian sandwiches and<br />
skewered meats, fowl and grilled fresh seafood. MacArthur Park—Ribs and chicken, store-made sausages and smoked meat<br />
sandwiches also chili, coleslaw and red potato salad.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
609
Starbucks<br />
Headquarters<br />
2401 Utah Ave. S., Seattle, Washington 98134 USA<br />
Tel: (206) 447 1575 Fax: (206) 447 0828<br />
Ownership: Public<br />
Segment: Limited Service All Other menu<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,940,278 2,395,000 1,892,046<br />
Company-owned ($000) 2,567,394 2,135,000 1,705,187<br />
Franchised ($000) 372,884 260,000 186,859<br />
U.S. Number of Units 4,464 3,764 2,862<br />
Company-owned 3,312 2,873 2,214<br />
Franchised 1,152 891 648<br />
International Sales ($000) 1,089,020 705,000 560,165<br />
International Units 1,729 1,340 955<br />
Average Sales/Unit ($000) 930 870 770<br />
Concept Positioning |<br />
Starbucks Coffee is the largest specialty coffee chain in the United States and the largest importer of specialty coffee. Retail<br />
stores vary in size from 300–1,700 sq. ft. Most have limited seating available. Its overall goal is to be the leading retailer and<br />
brand of coffee in each of its target markets.<br />
The units are designed to be sophisticated and inviting. A theatrical atmosphere is created with sleek black stools, mahogany<br />
trim on counter tops and opera music filling the air. Exteriors are unique and designed to be in character with its neighborhood.<br />
Typically clustered in high traffic areas, many are located in urban and suburban office buildings. About 40% of sales occur<br />
before 11 a.m. Coffee beverages account for 69% of retail sales; 10% of sales come from whole bean coffee; 15% comes<br />
from food items; and coffee-related hardware accounts for 6% of sales.<br />
The company added two smaller prototypes to its line up in 1997. They were designed for high-traffic, space-controlled areas<br />
such as office lobbies, grocery stores, hospitals, etc. Both carry a full line of its beverages but have limited selections of whole<br />
beans and accessories.<br />
Starbucks has a network of coffee brokers that look for the pick of the crop in the world's coffee-producing countries, buying<br />
only arabica beans to handle the roasting of its "full-city" process. Roasting is handled in the company plants so that its<br />
emphasis on quality can be maintained. Stores receive fresh supplies of whole-bean coffee at least twice a week as the end<br />
product of the roasting process has a short shelf life.<br />
The company also holds the patent on a brewing system that provides constant delivery of three different coffees to spigots<br />
throughout the store. Water is filtered to ensure a uniform taste. The beans are ground immediately before the coffee is<br />
brewed. In addition, special paper cups, treated with a polymer that ensures no flavor transfers, are used for individual cup<br />
sales.<br />
Also, Starbucks has developed other ventures, such as its Pepsi Cola/Frappucino Coffee drink, a joint undertaking and that is<br />
sold in supermarkets. Another such enterprise is a joint venture with Dreyers Ice Cream to market a line of seven different<br />
coffee-flavored ice creams. A licensing agreement with Kraft Foods, Inc. in 1998 has brought the Starbucks brand into the<br />
grocery/retail channel as well. In addition, coffee-related products, hardware and equipment are also carried in each of its<br />
stores, including its private line of Starbucks Barista home espresso machines and coffee brewers and grinders.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
610
<strong>RISE</strong> COMPANY PROFILE<br />
The company dates back to 1971. Howard Schultz joined it in 1982 and bought it in 1987 under the Il Giornale company. In<br />
May 1992, an initial public offering of 2.1 million shares was tendered. In mid-1994, acquisition of The Coffee Connection,<br />
Boston, was completed. It also acquired a minority interest in Noah's New York Bagels, now part of Einstein Bros./Noah’s New<br />
York Bagels, in January 1996. In May 1998, the company acquired Seattle Coffee Holdings Ltd., London, in a stock deal as a<br />
means to gain an immediate presence in the U.K. and a base for future expansion into other European markets. Then in<br />
December 1998 and January 1999, Starbucks announced more acquisitions: Pasqua Coffee, San Francisco, and Tazo,<br />
Portland, OR. Pasqua is a 48-unit coffee chain and Tazo, an upscale tea operation.<br />
Most recently, Starbucks has entered into agreements with grocers Albertsons, Inc. and Safeway, as well as with hospitality<br />
companies, such as Hyatt Hotels Corp. and Marriott International, Inc. Besides expanding its market share, the chain has also<br />
began offering its customers wireless Internet access in 2001, with a 2,000-unit roll out in 2002.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: gourmet coffee, sold by the cup or by the bag as well as line of Tazo teas. Also menus pastries, dessert<br />
snacks, cappuccinos, frappucinos, including Rhumba frappucino, espressos and other coffee drinks, such as the ready-todrink<br />
DoubleShot, soda juices, tea and ice cream. Added sandwiches and salads in some units. <strong>Menu</strong> Prices: 80¢–$3.65 for<br />
beverages; $6.25–$21.95 for whole bean coffees. Check Average: $3.60.<br />
Expansion Plans |<br />
Starbucks continues its domestic expansion. Its first café in Wichita, KS, includes a drive-thru window. A second store was to<br />
open soon and several more are to be announced. In addition, it was planning to open its first freestanding coffeehouse in<br />
Arkansas in May. It is expected to open six to eight units in Little Rock over the next three years and is reportedly interested in<br />
opening three to four outlets in Northwest Arkansas. The only other states without Starbucks units are Alaska, Montana, North<br />
Dakota, South Dakota and West Virginia. (FIR 3/10/03 p8; NDNF 3/26/03)<br />
Promotion Plans |<br />
Starbucks is now listing Starbucks Collectibles at www.StarbucksCollectibles.com. Created in response to customer demand,<br />
the Web site will feature company memorabilia produced since 1995, including City Mugs and the Bearista Bear. In addition to<br />
the Web site, Starbucks is also offering limited-edition collectibles at select stores in North America. (Company Release)<br />
Starbucks launched the “Meet Your Friends at Any Starbucks” sweepstakes that runs through February 17. Customers enter<br />
the contest by using their Starbucks Card or the chain’s new Duetto Visa card on purchases. (NRN Daily NewsFax 12/30/04)<br />
<strong>Menu</strong> Development |<br />
Starbucks Corp. kicked off test marketing of Godiva Chocalatier chocolate and biscuits in February at 50 outlets in New York,<br />
Chicago and Seattle. Results of the test will be evaluated after three to four months. (NRN 2/24/03 p48; FIR 2/17/03 p7)<br />
Starbucks announced it will launch a new line of malt-flavored Frappuccinos in April. (Reuters)<br />
Dessert ingredients are being used to add unexpected twists to entrees. While savory versions of classic desserts have been<br />
trendy over the last year or so, with chefs utilizing elements such as pepper, chili and beer in desserts, the latest innovation at<br />
several New York restaurants appears to be dessert-inspired flavors being applied in unexpected ways. At Jefferson, fish is<br />
served with chocolate-balsamic syrup, while Bull Run serves Vanilla Scented Lobster Bisque blended with Tahitian vanilla<br />
beans and extract. The soup is served with a lobster cake coated in coconut. Another example is the Wood Grilled Steak with<br />
Bitter Chocolate and Syrah Sauce at Bradley Ogden. (Wall Street Journal)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
611
<strong>RISE</strong> COMPANY PROFILE<br />
Dessert beverages based on popular sweets are being used to add a unique alternative for after-dinner options. While limitedservice<br />
chains have long offered dessert-oriented beverages such as Starbucks toffee nut crème and caramel apple cider, fullservice<br />
concepts are now exploring these drinks. Dylan Prime in New York serves a series of alcoholic beverages called “pietinis”<br />
that are based on popular desserts such as apple pie a la mode, peach cobbler and Key lime pie. The peach cobbler pietini<br />
is a blend of peach schnapps, fresh peach puree and simple syrup. It is poured in a martini glass rimmed with cinnamon<br />
sugar and layered with vanilla liquor and heavy cream. T.G.I. Friday’s offers a similar collection with drinks inspired by<br />
strawberry shortcake, banana splits and ice cream sandwiches. Its banana split blends three liqueurs with bananas,<br />
strawberry and vanilla ice cream. For nonalcoholic options, Bubba Gump Shrimp Co. serves an assortment of dessert<br />
smoothies in flavors such as Oreo Cookie and an Alabama Sweet offering that blends peanut butter, chocolate and nonfat<br />
vanilla frozen yogurt. (Nation’s Restaurant News)<br />
Starbucks is experimenting with sandwiches. Some units serve sandwiches on croissants, while Seattle units are testing a line<br />
of Breakfast Savories. These $2.95 sandwiches feature egg and cheese. (USA Today, 6/3/03, p 2B)<br />
Starbucks debuted a line of Iced Shaken Refreshments that includes Iced Coffee, Tazo Iced Tea and Tazo Tea Lemonade.<br />
The fat-free drinks combine ice with ingredients such as teas, flavored syrup, coffee and lemonade and are hand-shaken in a<br />
martini-style shaker. Prices range from $1.95–$2.85 for 16 oz. (NRN Daily NewsFax, 7/2/03, New York Times, 7/1/03)<br />
Chai is a spiced tea drink popular in northern India that is now gaining ground on U.S. menus. Made with a blend of teas, milk<br />
and aromatic spices such as cardamom, cinnamon, cloves, ginger, nutmeg and pepper, it can be served hot or cold. At Port<br />
City Java based in Wilmington, NC, chai is an appealing alternative for guests who don’t drink coffee. Several major chains are<br />
now serving chai drinks, including Dunkin’ Donuts, Starbucks, Panera and Atlanta Bread. Starbucks is currently serving chai<br />
tea lattes in both hot and iced varieties as well as chai cream frappuccinos. Vancouver, WA-based Burgerville even offers an<br />
Oregon Chai milk shake. (Nation’s Restaurant News, 8/4/03, p31)<br />
Starbucks rolled out its Eggnog Latte and Peppermint Mocha beverages for the holidays. (NRN Daily NewsFax 12/3/03)<br />
International Activities |<br />
Starbucks Coffee International will acquire its licensed operations in Switzerland and Australia from Bon Appetit Group, its<br />
Swiss partner. The move will give Starbucks a total of 14 Swiss and seven Austrian coffeehouses and the ability to continue<br />
growth in both markets. Terms of the deal, expected to close by April, were not disclosed. According to Starbucks chairman<br />
and chief global strategist Howard Schultz, the expanded ownership will help the company establish “a larger equity position in<br />
our international business.” Over the last few years, Starbucks has acquired its licensed operations in Thailand and Australia<br />
and increased its equity stake in its South Korean business. (NDNF 3/3/03)<br />
Starbucks Coffee International dissolved its joint venture for Israel with Delek Group. It cited operating difficulties in the market<br />
as reason for the change. The joint venture operating group, Shalom Coffee Co., planned to close its six Starbucks units in Tel<br />
Aviv. Starbucks said it retains its commitment to the area and expects to return to it at an appropriate time. (NRN 4/7/03 p76)<br />
Starbucks noted that it is experiencing flagging sales in parts of Asia due to the SARS (severe acute respiratory syndrome)<br />
outbreak. A spokeswoman noted that the company has closed one outlet, which was located in a quarantined hospital in<br />
Singapore where SARS patients are being treated. In Hong Kong, employees are wearing masks and gloves while serving<br />
customers. (FIR 4/7/03 p6)<br />
Starbucks Coffee International will open stores throughout Chile through a joint-venture agreement that it signed with Grain<br />
Red S.A. The openings will mark Starbucks’ debut in South America. The joint venture, Sur-Andino Café S.A., expects to open<br />
its first Starbucks in the Chilean capital, Santiago, during the second half of this year. Last September, Starbucks opened its<br />
first stores in Latin America in Puerto Rico and Mexico. In Thailand, Starbucks Coffee (Thailand) will open six new outlets this<br />
year, matching the scale of last year’s expansion. And finally, Starbucks Corp. announced that it would soon begin posting<br />
profits from its expanding international business despite some of its biggest overseas ventures losing money. It noted that<br />
beginning in 2004, it expects its international business to contribute to profitability. (NDNF 5/16/03 & 5/22/03; FIR 5/26/03 p8)<br />
Starbucks 1,532 overseas stores are a net money loser. Its international stores account for 23% of its total store count but just<br />
9% of sales. The company has serious competition in many countries. In Britain, where it has about 330 locations, its<br />
competition often charges lower prices. For instance, in London, a Starbucks tall latte sells for $2.93 and the same drink goes<br />
for $2.12 at the rival Caffe Nero Group PLC. Among the factors taking a toll on its international profits are real estate and labor<br />
costs that are considerably higher than those in the U.S. (BW 6/9/03 p48)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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<strong>RISE</strong> COMPANY PROFILE<br />
Starbucks Coffee International signed a licensing agreement with Lasino S.A. to open Starbucks retail outlets throughout Peru.<br />
The first store is slated to open in Lima during the second half of this year. (FIR 6/23/03 p6)<br />
Starbucks Coffee Japan Ltd. plans to begin selling alcoholic beverages at some shops after changing corporate articles at its<br />
shareholders’ meeting in early July. The Japan-based company, made up of more than 450 stores, reportedly has tested the<br />
sale of beer and wine at a store in a Kobe theater and plans to extend the test to shops where there is customer demand. The<br />
company said it would maintain its image as a coffee shop. (NRN 7/7/03 p72)<br />
Starbucks Coffee International has opened its first units in Santiago, Chile, and Lima, Peru. The unit in Chile is operated by<br />
Sur Andino Café SA, a joint venture between Starbucks and Grain Red SA, and the Lima store is part of a development deal<br />
that Starbucks signed with Lasino S.A. In addition, Starbucks opened its first café in southern China in the city of Guangzhou.<br />
The two-story location was developed by Coffee Concepts (Guandong) Ltd., a wholly owned subsidiary of Coffee Concepts<br />
Southern China, a joint venture between Starbucks Coffee International and Mei-Xin (International) Ltd. (FIR 8/25/03 p4;<br />
NDNF 8/20/03, 8/26/03 & 9/2/03)<br />
Starbucks Coffee International signed a joint venture deal to open its first café in France with Group VIS, a European<br />
foodservice and retail operator. It is slated to open in early 2004. Starbucks’ system includes more than 7,000 outlets in North<br />
America, Latin America, Europe, the Middle East and the Pacific Rim. (NDNF 9/29/03)<br />
Starbucks has a Chinese copycat in two new Shanghai Xing Ba Ke coffee shops in Shanghai. The logo copies Starbucks’<br />
green and white design and the name is loosely translated “Shanghai Starbucks.” Overt brand-borrowing reportedly is on the<br />
rise in China. Starbucks has 29 of its own cafes in Beijing and a few years ago, it registered several variations of its Chinese<br />
name, including Xing Ba Ke. The Xing Ba Ke shops have higher prices and a waitstaff. The general manager of one of the<br />
stores said that Shangai Xing Ba Ke plans to open 30–50 units over the next two years and has a legal advisor in the event<br />
that Starbucks files suit. The coffee giant has been vigilant about protecting its trade name in situations that involved store<br />
names such as Sambucks. (FOR 9/29/03 p48)<br />
Technology |<br />
Starbucks said it would end extended tests of an “Express” service offered in Washington and Colorado. The test allowed<br />
registered users to avoid lines by ordering beverages and foods via cell phones or the Internet. Users of the services pre-paid<br />
into an account that covered their purchases and order costs. The test was kicked off at 11 Seattle-area units more than a<br />
year ago and extended to 60 Denver-area stores last August. The company said it has no firm plans to roll out Starbucks<br />
Express in the future. It declined to divulge results of the tests. (NDNF 2/4/03)<br />
Starbucks will partner with Visa USA and Bank One on the first-ever dual-purpose credit card/and prepaid cash card for a<br />
retailer. At Starbucks, the card can be used to make purchases as customers already do with its prepaid card and the new<br />
card can be used as a standard credit card anywhere else. Users will accrue coffee credits at Starbucks. Users of the card<br />
who regularly charge purchases on it may never again have to pay for their morning coffee. While it can take a couple of years<br />
to earn a free airline ticket by accumulating miles based on charge purchases, even conservative card users will see the small<br />
Starbucks freebies kick in fairly soon. The company also envisions a system in which the consumer swipes the card, places an<br />
order on a touchscreen and then picks it up, shaving a few seconds off the ordering process. The card will store the user’s<br />
previous ordering information so when it is swiped, the screen may be scripted to ask a question such as “Would you like your<br />
usual decaf caramel frappuccino?” If the dual-purpose cardholder opts to register the card and provide personal information,<br />
Starbucks might be able to offer customers a freebie on their birthday. (Business 2.0 8/03 p56)<br />
Starbucks has rolled out a reloadable payment card that doubles as a credit card. The company partnered with Visa and Bank<br />
One to create the Duetto Card. As part of the card's rewards, customers earn back 1% of their purchases in "Duetto Dollars,"<br />
which are loaded onto the card's account automatically and redeemable for Starbucks purchases. (Nation's Restaurant News<br />
10/27/03 p14)<br />
Starbucks celebrated its one-year anniversary of Wi-Fi service. In honor of the achievement, it offered customers to the<br />
opportunity to listen to and watch performances by blues musicians. The promotion ran through October. (Company Release<br />
10/1/03)<br />
Starbucks has rolled out a reloadable payment card that doubles as a credit card. The company partnered with Visa and Bank<br />
One to create the Duetto Card. As part of the card’s rewards, customers earn back 1% of their purchases in “Duetto Dollars,”<br />
which are loaded onto the card’s account automatically and redeemable for Starbucks purchases. (NRN 10/27/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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<strong>RISE</strong> COMPANY PROFILE<br />
Americans are expected to buy $45 billion worth of gift cards this year. Many are credit cards preloaded with cash and<br />
redeemable anywhere that the regular credit cards can be used. Many foodservice operators have entered the fray as well.<br />
Joining Starbucks and other operators in offering such cards are Pizza Hut, which features cards that can be activated in<br />
amounts up to $100, and Panera Bread Co., which is offering cards in denominations from $1–$200. In addition, Papa John’s<br />
International has rolled out a reloadable gift card called the Papa Card with values between $10 and $100 that can be used for<br />
payment of delivery, carryout and online orders. The company has teamed with 20th Century Fox Home Entertainment to offer<br />
card buyers a coupon for $7 off the DVD “X2:X-Men United” or $5 off DVDs purchased at Fox’s Web site. (NW 11/3/03 p78;<br />
SFS 11/03 p17; FIR 11/3/03 p6; NDNF 11/20/03)<br />
Personnel |<br />
Howard Schultz, Chairman<br />
Orin Smith, President<br />
Michael Casey, Chief Financial Officer<br />
Jim Alling, Vice President of Marketing<br />
Starbucks promoted Jim Alling to executive vice president for U.S. business and operations. (NRN Daily NewsFax 12/12/03)<br />
News & Other |<br />
Starbucks Coffee Co. is teaming up with Visa U.S.A. and Bank One to develop new payment products. The first will be a<br />
Starbucks credit card that would combine the company’s reloadable stored-value payment card and a Visa credit card.<br />
Starbucks stored-value cards have been activated by more than 11 million patrons. (NDNF 2/24/03)<br />
Starbucks Corp. is unhappy with Playboy magazine’s planned “Women of Starbucks” feature. The magazine has issued an<br />
alert seeking women for the pictorial, which is likely to be published by year’s end. Starbucks issued a statement saying it is<br />
not affiliated with the project and does not endorse it. The magazine said it is receiving many submissions for the issue. (CT<br />
3/5/03 p8)<br />
Guest Services has added three proprietary concepts to its food courts. They are Hot Java, which features Starbucks coffee,<br />
Tazo teas, chai, hot chocolate and a Gourmet Sweets component; The Pistachios, offering Edy’s ice cream in sundaes,<br />
shakes, floats and smoothies; and Caesar’s Corner, which features tossed-to-order salads that include carvery items such as<br />
flank steak, chicken, salmon, calamari and shrimp along with items such as cubed roasted potatoes, crispy onion laces and<br />
seasoned croutons. (FSD 4/15/03 p18)<br />
The 100 largest U.S. restaurant companies in 2002 matched their 2001 performance, according to <strong>Technomic</strong> Inc. The<br />
aggregate annual rate of growth for those top operators was 4.7%. Their U.S. systemwide sales rose to $145.8 billion, a $6.6<br />
billion gain over the same chains’ 2001 results. The highest rate of growth in 2002 was in the “bakery/other sandwich”<br />
category, which grew 13.7%. The doughnut category was up 13%. The “broad menu” as well as Italian categories had sales<br />
growth that topped 8%. Among the fastest-growing chains were Starbucks, Ruby Tuesday, Subway, Chili’s Grill & Bar, Golden<br />
Corral and Sonic, according to <strong>Technomic</strong>. (NDNF 5/8/03)<br />
Starbucks Corp. is acquiring AFC Enterprise’s Seattle Coffee Co. for $72 million. The deal includes a total of 150<br />
coffeehouses: 51 company-owned and 78 franchised Seattle’s Best and 21 company-owned Torrefazione Italia locations as<br />
well as nearly 12,000 points of retail distribution of their wholesale products. The all-cash acquisition, expected to be<br />
completed by mid-July, was characterized by Starbucks as the next step of its growth beyond its signature brand. AFC will<br />
retain international and military-base franchise rights for the spun-off brands. Starbucks, with more than 6,000 coffeehouses<br />
and coffee bars and more than 23,600 grocery and foodservice accounts, said it has not determined whether it will keep the<br />
brands intact and expand them or close or convert the coffeehouses to Starbucks outlets. (NRN 4/28/03 p1; MBN 4/22/03 p10)<br />
Starbucks reported a 64% rise in net income to $52.1 million for the second quarter ended March 30. This compares to $31.7<br />
million in the same period one year ago. Revenues rose 22% to $954.2 million. For the first six months, net profits grew 31%<br />
to $130.5 million and revenues rose by 23% to $1.96 billion. Same-store sales at company-operated outlets grew 7% in the<br />
second quarter and 8% for the six-month period. (NDNF 4/25/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
614
<strong>RISE</strong> COMPANY PROFILE<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
615
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Meijer will open Starbucks cafes in a number of its supermarkets. They will replace the chain’s proprietary coffee counters,<br />
Café Copas. By year’s end, licensed Starbucks will be in operation at 25–30 stores. They will offer the full line of Starbucks<br />
beverages and will each seat about 18. Meijer employees will work at the cafes, but will be trained by the coffee company in<br />
order to deliver coffee and service consistent with Starbucks’ operations model. Starbucks will provide 120 hours of training to<br />
new baristas as part of the franchise deal. The decision to license the cafes was made after a Starbucks shop tested positively<br />
in a Michigan-based Meijer store, increasing coffee sales “substantially” there. (Morningnewsbeat.com, 5/29/03;<br />
SupermarketNews.com, 5/30/03)<br />
Starbucks Coffee president Peter Maslen resigned as president of Starbucks Coffee International after a brief medical leave.<br />
In other news, Starbucks has introduced a line of iced tea, coffee and tea lemonade drinks that were developed over a nearly<br />
two-year period. The drinks are hand-shaken in specially designed shakers with about 25 aeration holes that help create foam.<br />
The shaker is printed with the recipe for each drink in an effort to speed service times and reduce human error. The fat-free<br />
beverages range in price from $1.95–$2.85. (NDNF 6/11/03 & 7/2/03; NYT 7/1/03 pC1)<br />
Seattle Coffee, exclusive supplier to Alaska Airlines, is awarding the carrier’s mileage plan members triple miles for every<br />
dollar spent at its online store. In April, Starbucks agreed to acquire Seattle Coffee for $72 million from AFC Enterprises.<br />
(NDNF 6/16/03)<br />
HMSHost said it signed a 10-year extension of its licensing agreement with Starbucks Coffee Co. that will be worth more than<br />
$4.4 billion in revenues. HMSHost currently operates more than 180 of the outlets at airports and travel plazas in the U.S. and<br />
Canada. It opened its first Starbucks outlet in 1991. (NRN 5/5/03 p156)<br />
George Bush Intercontinental Airport in Houston awarded a 10-year contract to HMSHost Corp., which will add several<br />
concepts, including Starbucks, Fox Sports Bar & Grill and a space-themed gift shop. Over the life of the contract, the new<br />
outlets are expected to generate more than $60 million in revenues. (NRN 2/10/03 p76)<br />
Starbucks Corp. reported that earnings rose 23% and revenues increased 24% for the third quarter ended June 30. Net<br />
income was $68.4 million compared to $55.7 million a year earlier. Same-store sales rose 8%. (NDNF 7/25/03)<br />
Barnes & Noble cafes introduced panini grills in the last year and the company is seeking a sandwich brand to add to its menu.<br />
The cafes serve Starbucks coffee beverages and Cheesecake Factory desserts. Stores also bake off cookies and scones<br />
daily. (NRN 7/28/03 p88)<br />
The University of Minnesota’s renovated Coffman Memorial Union includes a food court with national and local brands.<br />
Einstein Brothers Bagels and Chick-fil-A are augmented with local brands and proprietary concepts from contract feeder<br />
Sodexho. Also offered is a c-store, the M Deli and a Starbucks outlet. (FM 7/03 p14)<br />
Starbucks Corp. reported same-store sales at company-operated outlets for the four weeks ended August 24 increased 9%<br />
compared to the same period a year ago. (Nation’s Restaurant News 09/08/03 p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
616
<strong>RISE</strong> COMPANY PROFILE<br />
AFC Enterprises said its lenders will extend the deadlines for filing its annual report until October 31 and its 2003 quarterly<br />
reports until December 1. The agreement calls for AFC to deposit $32 million—about half of its proceeds from the recent sale<br />
of Seattle Coffee Co. to Starbucks Corp.—into a collateral account. If it does not meet its new deadlines for filing its financial<br />
statements, the deposited funds would be applied as prepayment against AFC’s term loans under its credit facility. AFC is<br />
parent of Popeyes Chicken & Biscuits, Church’s Chicken and Cinnabon. In other news, AFC’s stock price fell 16.25% on its<br />
last full day of trading on the Nasdaq exchange after it disclosed that its common stock was being delisted. AFC said its stock<br />
would be quoted on the “Pink Sheets” for unsolicited trading rather than on the OTC Bulletin Board because it had not filed<br />
financial statements dated within six month of a possible quote. Its stock was dropped by Nasdaq for similar reasons. The<br />
company said it was working to complete “as soon as possible” restatements for 2002, 2001 and 2000 and to file its 10-K<br />
annual and 10-Q quarterly reports with securities regulators for fiscal 2002 and the first two quarters of 2003. (NRN 8/25/03<br />
p81 & 9/1/03 p116)<br />
Johnson Development Corp. was slated to open its 50th Starbucks in Milwaukee in September and has more than 20<br />
additional branches of the coffee brand in development and expected to open over the next 15 months. Johnson Development<br />
Corp. is headed by Earvin “Magic” Johnson. Through its Urban Coffee Opportunities, the Johnson-Starbucks Corp.<br />
partnership, Johnson’s goal is to operate 125 inner-city Starbucks Coffee outlets. The partnership currently has outlets in 12<br />
states and the District of Columbia. Johnson launched its co-development pact with Starbucks in 1998. The company also has<br />
a partnership with Dallas-based Carlson Restaurants Worldwide to develop Magic Johnson’s T.G.I. Friday’s, with two already<br />
in operation in Los Angeles and Atlanta. (NRN 9/1/03 p4)<br />
Starbucks Corp. for the five weeks ended September 28, reported same-store sales increased 9% at company-operated units<br />
as consolidated net revenue increased 25% to $422 million compared to the same period a year ago. (NRN Daily NewsFax<br />
10/3/03)<br />
Starbucks expects to continue opening three to four stores per day for at least the next three to five years. Howard Schultz,<br />
chairman and chief global strategist, thinks the company, which currently has about 7,000 stores, could eventually have<br />
25,000 units worldwide. (FIR 9/22/03 p6)<br />
Whittard of Chelsea plans to launch a new chain of teashops in the U.S. The United Kingdom tea and coffee retailer hopes to<br />
compete with the Starbucks chain. (FIR 9/15/03 p6)<br />
Southwest Florida International Airport awarded a 10-year contract to HMSHost Corp. The deal, worth $146 million, calls for<br />
the management firm to operate several restaurants in a new midfield terminal scheduled to open in June 2005. HMSHost will<br />
partner with PJLF Enterprises on the project, which will include Starbucks Coffee, Maggie Moo’s Ice Cream and Treatery and<br />
Palm City Market units. (NDNF 9/29/03)<br />
Starbucks Corp. For the four weeks ended October 26, reported same-store sales at company-owned units increased 9%.<br />
(NRN Daily NewsFax 10/30/03)<br />
Starbucks Corp. for the fourth quarter ended September 28, reported same-store sales increased 9% compared to the same<br />
quarter last year. (NRN Daily NewsFax 11/17/03)<br />
Starbucks Coffee Co. for the quarter ended September 28, reported comparable store sales increased 9%. (Restaurant<br />
Business Daily News 11/17/03)<br />
Starbucks Corp. for the four weeks ended October 26, reported revenues increased 30% to $363 million compared to the<br />
same period last year. Same-store sales at company-owned units increased 9%. (Nation’s Restaurant News 11/10/03 p45)<br />
Starbucks same-store sales increased 11% for the four weeks ended November 23. Total sales rose 28% to $328 million.<br />
(NRN Daily NewsFax 12/01/03)<br />
HMSHost Corp. contracted a 15-year deal to operate Starbucks Coffee shops and Travel Mart convenience stores in seven<br />
travel plazas on the Illinois Tollway. Revenues are expected to exceed $185 million over the pact’s lifetime. (NDNF 10/27/03)<br />
HMSHost Corp. announced it won a 10-year contract to manage three restaurants at Jackson International Airport in Jackson,<br />
MS. The three restaurants are planned to be Starbucks, Sports Hall Café and On Stage Mississippi Bar & Grille. HMSHost<br />
also announced that it reopened the Frank S. Farley Plaza on the Atlantic City Expressway in New Jersey. (NRN 10/20/03<br />
p26)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
617
<strong>RISE</strong> COMPANY PROFILE<br />
Fair Trade Certified coffee is gaining momentum after Procter & Gamble announced that it would market the coffee through its<br />
Millstone division. The company noted that it would purchase two-to-three million pounds per year. Fair Trade Certified coffee<br />
promises farmers a minimum of $1.26 a pound for their harvest and is grown by democratically organized cooperatives.<br />
Currently, Fair Trade is the fastest growing sector of the specialty coffee industry with Starbucks, Aramark, Green Mountain<br />
and Pete’s Coffee & Tea all offering some variety of Fair Trade coffee. (FSD 10/15/03 p44)<br />
Starbucks Coffee rolled out Eggnog Latte and Peppermint Mocha beverages for the holidays. Separately, 23 Starbucks in the<br />
western part of Houston were vandalized over the first weekend in December. Toothpicks were glued into entry locks and<br />
mock letters from management were left. Similar tactics were used on at least eight Starbucks units in San Francisco in<br />
August and 14 in Chicago in 2001. (NRN 11/24/03 p14; NDNF 12/3/03)<br />
Sodexho has completed the first year of its eight-year contract with the U.S. Marine Corps. Worth $850 million, the venture<br />
covers both West Coast and East Coast contracts. In addition, Sodexho recently signed a separate contract to manage<br />
several retail foodservice outlets at the Marine Corps Air Station in Miramar, CA. They include Starbucks, Freshëns, Quiznos,<br />
Taco Bell, KFC, a restaurant at the base golf course and operations in the Enlisted Club and Officers Club. Sodexho uses<br />
Defense Department purchasing specifications and follows recipes from the Armed Forces Recipe System. At selected West<br />
Coast mess halls, Sodexho is running a test of a 21-day-cycle menu rather than the military’s standard 28-day cycle. The test<br />
also allows Sodexho to introduce a few menu items of its own. The Marines are anxious to improve mess hall participation.<br />
Single Marines living on base receive a meal card but on any given day, only about 55% take advantage of their free meals.<br />
The Marine Corps would like to find out why participation is so low and improve it. (NRN 11/24/03 p4)<br />
Starbucks for the five weeks ended December 28, reported that same-store sales rose 11%. This marks the company’s<br />
highest December same-store sales growth since 1992. (NRN Daily NewsFax 1/6/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
618
Steak and Ale<br />
Headquarters<br />
6500 International Pkwy., Plano, Texas 75093 USA<br />
Tel: (972) 588 5000 Fax: (972) 588 5653<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 151,500 152,500 174,500<br />
Company-owned ($000) 150,000 151,000 173,000<br />
Franchised ($000) 1,500 1,500 1,500<br />
U.S. Number of Units 69 71 108<br />
Company-owned 68 70 107<br />
Franchised 1 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,600 1,600 1,616<br />
Concept Positioning |<br />
Steak and Ale restaurants are full-service operations targeting customers between the ages of 30 and 64. Most units are open<br />
for lunch and dinner; some provide evening entertainment.<br />
Nearly all the units are freestanding, with seating for 200–225 patrons in small, intimate dining areas. They average<br />
approximately 6,250 sq. ft. in size. Its newest prototype, opened in 1999, is 6,440 sq. ft. with seating for 231. The design<br />
allows for a number of operational initiatives as well as space accommodation from freestanding to retail center sites to hotel<br />
locations. In addition, the company has also updated its menu offerings.<br />
Steak and Ale was founded in 1966 in Dallas by Norman Brinker. It went public in 1971, was acquired in 1976 by The Pillsbury<br />
Co. and then divested in 1989. Benale Holdings Corp. was formed in February 1989 to acquire the chain's corporate entity; it<br />
was acquired in 1992 by the Metromedia Co. for some $423 million.<br />
In Spring 2003, Metromedia announced the sale of Steak and Ale, along with Ponderosa/Bonanza, to Apex Acquisition<br />
Partners, based in Irving, TX. Headed by Mark Bromberg and John Todd, Apex is also the manager of Semolina in Louisiana<br />
and Left in Albuquerque. The sale is subject to approval of a number of conditions, one being financing.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Signature Tastes line of proprietary steaks such as 9-Pepper (9-oz. filet coated with 9 different types of<br />
peppercorns, grilled and topped with brandy peppercorn sauce) and Herb Roasted Prime Rib. Also features regular rotation of<br />
entrees ranging from steaks and prime rib to chicken, fresh fish and pastas as well as its distinctive salad bar, appetizers and<br />
desserts. Check Averages: $14–$17.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
619
Personnel |<br />
Bill Spae, President<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Metromedia Restaurant Group is selling its Bonanza, Ponderosa and Steak and Ale chains to focus on its 305-unit Bennigan’s<br />
brand. Acquiring the nearly 550 units is Apex Steakhouse Acquisition Partners of Irving, TX. Terms of the deal were not<br />
disclosed by the two private companies. The sale includes 69 Bonanza and 412 Ponderosa restaurants, most of which are<br />
franchised, and the 66 Metromedia-owned units of Steak and Ale. Apex is headed by Mark Bromberg, a veteran of East Side<br />
Mario’s, and John Todd, a former Gateway Computers executive. Upon completion of the sale, Doug Barber, president of<br />
Metromedia Family Steakhouse, and Bill Spae, president of Steak and Ale, will join Apex Restaurant Group. The Family<br />
Steakhouse group includes the Bonanza and Ponderosa brands. Metromedia Restaurant Group said that the sale of the three<br />
concepts will allow it to be more focused on its casual-dining Bennigan’s Irish American Grill & Tavern brand. (NRN 3/24/03<br />
p1)<br />
Bennigan’s Irish American Grill & Tavern will grow by 25–30 units this year, with four or five of those to be company-operated<br />
units. It would like to increase the number of company-operated unit openings to 10 or 15 per year. In 2002, Bennigan’s<br />
opened 22 outlets, of which about 19 were franchised. Parent Metromedia Restaurant Group announced in March that it was<br />
selling its almost 550 Bonanza, Ponderosa and Steak and Ale restaurants to Steakhouse Acquisition Partners to focus on its<br />
305-store Bennigan’s. The company currently operates about 175 units, with the remainder—including 22 international units—<br />
franchised. (NRN 5/26/03 p1)<br />
Metromedia Restaurant Group’s intended buyers revised the deal following an announcement last March that they would<br />
acquire Steak and Ale, Ponderosa and Bonanza. Instead, investors Mark Bromberg and John Todd, the principals in Apex<br />
Restaurant Group LP of Irving, TX, bought an unspecified minority stake in MRG and assumed management of the company,<br />
which operates and franchises 836 units, including the Bennigan’s chain. Majority control is retained by Metromedia Co. of<br />
New Jersey. Bromberg, who founded the East Side Mario’s Italian chain and is now chairman of MRG, said that the brands will<br />
have new capital and that the executive team will work to reinvent and reinvigorate the brands and also to possibly grow them.<br />
Todd, the former chief financial officer of Gateway Computer, is MRG’s chief executive. (NRN 9/15/03 p3 & 9/22/03 p5; RB<br />
10/1/03 p14)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
620
Steak Escape<br />
Headquarters<br />
222 Neilston Street, Columbus, Ohio 43215 USA<br />
Tel: (614) 224 0300 Fax: (614) 224 6460<br />
www.steakescape.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 84,500 81,800 -<br />
Company-owned ($000) 7,000 6,800 -<br />
Franchised ($000) 77,500 75,000 -<br />
U.S. Number of Units 170 162 -<br />
Company-owned 14 14 -<br />
Franchised 156 148 -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 515 515 -<br />
Concept Positioning |<br />
Steak Escape is an internationally known sandwich chain specializing in cheesesteak sandwiches, french fries and lemonade.<br />
The chain has achieved most of its growth through its presence in malls. Recently, though, the company has shifted its<br />
expansion position and is currently seeking growth through the development of freestanding units. Through the addition of<br />
freestanding units, the chain believes it can offer its customers a friendlier atmostphere and an expanded menu that caters to<br />
more developed tastes and children. Décor is contemporary, with exposed brick walls, warm colors and soft lighting.<br />
Steak Escape also has units located in nontraditional sites, such as airports and college campuses.<br />
Steak Escape was founded in 1982 with the opening of the first unit in Columbus, OH. The company has grown into an<br />
international chain, with restaurants located in Puerto Rico and Malaysia.<br />
<strong>Menu</strong> Positioning |<br />
Signature Item—Philadelphia–style cheesesteak sandwich. Also menus other sandwiches, such as chicken, turkey and ham.<br />
Sandwiches come in 6 in. and 12 in. sizes and can be made into a combo meals. Sides range from french fries, loaded or<br />
plain, to "smashed" potatoes, which also can be loaded. Salads and kids meals are also available. <strong>Menu</strong> Prices: $2.99–$6.49.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
621
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Villa Pizza launched a unit at the student union of Ohio State University in Columbus, OH. The unit, operated by a local<br />
franchisee who leases space and pays OSU a percentage of sales, joins other concepts in the union such as Wendy’s,<br />
Freshens, Wall Street Deli and The Steak Escape. Villa Pizza also operates a unit at Princeton University’s student union. In<br />
that venue, the school pays the chain a percentage of sales in return for the chain’s training, support and products. (R&I<br />
4/15/03 p39)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
622
Stuart Anderson's<br />
Headquarters<br />
4410 El Camino Real, Los Altos, California 94022 USA<br />
Tel: (650) 949 6400 Fax: (650) 949 6425<br />
www.stuartandersons.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 294,897 302,160 299,822<br />
Company-owned ($000) 294,897 302,160 299,822<br />
Franchised ($000) - - -<br />
U.S. Number of Units 109 107 105<br />
Company-owned 109 107 105<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,743 2,750 2,855<br />
Concept Positioning |<br />
Stuart Anderson's operates a chain of steakhouses named Stuart Anderson's Black Angus or, if local trademarks preclude that<br />
name, Stuart Anderson's Cattle Company. The restaurants are full-service operations serving lunch, dinner and cocktails.<br />
While most patrons are couples, the chain does attract some families.Almost all units are freestanding, with 6,500–12,000 sq.<br />
ft. and seating for 220–350 patrons. They are western in design, featuring red awnings and exposed wooden beams. A<br />
prototype was developed in 2002 that is approximately 8,000 sq. ft. That concept, along with the smaller-sized units, is the<br />
company's current expansion model. Restaurants are generally open from 11:30 a.m.–10:00 p.m.Stuart Anderson founded the<br />
chain in 1964. His original menu included six cuts of meat, potato, salad, and bread for $2.95, the first single price menu in the<br />
steakhouse segment. In 1972, Anderson sold the chain to Saga Corp. In August 1986, Marriott Corp. acquired Saga for $502<br />
million and American Restaurant Group acquired the chain in February 1987 along with other Saga restaurant holdings.In<br />
early 1997, ARG sold 24 Stuart Anderson units to ARG Properties I LLC, Los Angeles, for $48 million. In early 2000, ARG<br />
announced that it was selling all but its Stuart Anderson holdings to Spectrum Restaurant Group, Inc. for some $25 million.<br />
That deal was completed in late June.<br />
<strong>Menu</strong> Positioning |<br />
Entrees include steaks, prime rib, chicken, ribs, shrimp and daily fresh seafood specials. Also menus appetizer sampler<br />
platters and signature dessert: Big Mountain Chocolate Fudge Cake. All entrees include fresh-baked bread and soup or salad<br />
and steamed. Vegetable. Full liquor service available. <strong>Menu</strong> Prices: $9.99–$19.99. Check Averages: $12.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
623
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are showcasing inventive ingredients as operators work to develop enticing options that appeal to consumers looking<br />
to indulge even as obesity becomes an increasingly important issue. While salads and other better-for-you fare seem to be<br />
gaining menu mentions lately, hamburgers remain the most-ordered option at restaurants. Interesting toppings, spices and<br />
sauces are being utilized to add flavor and interest. At Red Robin, a 5 Alarm Burger is smothered in Pepper Jack cheese,<br />
jalapenos, salsa, tomatoes, lettuce and chipotle mayonnaise. Equally indulgent variations include: ■ Ranch Burger—halfpound<br />
burger with spicy ranch dressing, Cheddar cheese, bacon and grilled red onions, Ground Round ■ Hickory Burger—<br />
half-pound Choice sirloin patty topped with Cheddar cheese, hickory-smoked bacon and stout barbecue sauce, Rock Bottom<br />
Restaurant & Brewery ■ California Burger—half-pound Choice beef patty topped with Jack cheese, bacon and avocado, Stuart<br />
Anderson’s Black Angus/Cattle Company ■ Smoke House Burger—half-pound Choice beef patty with Jack and Cheddar<br />
cheeses, sautéed mushrooms, onions and barbecue sauce, Texas Roadhouse. (Restaurants & Institutions 9/1/03 p31)<br />
Personnel |<br />
George Golleher, Chairman<br />
Ralph Roberts, Chief Executive Officer<br />
William Taves, Chief Financial Officer<br />
Dave Ohlsen, Chef<br />
Laura Medanich, Director of Marketing<br />
News & Other |<br />
Stuart Anderson’s Black Angus reported same-store sales decreased 7.2% in the first half of the year. (Nation’s Restaurant<br />
News 9/8/03 p96)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
624
Subway<br />
Headquarters<br />
325 Bic Drive, Milford, Connecticut 6460 USA<br />
Tel: (203) 877 4281 Fax: (203) 876 6674<br />
www.subway.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 5,200,000 4,500,000 3,800,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 5,200,000 4,500,000 3,800,000<br />
U.S. Number of Units 14,522 13,247 12,253<br />
Company-owned 1 - -<br />
Franchised 14,521 13,247 12,253<br />
International Sales ($000) 847,000 670,000 596,000<br />
International Units 3,036 2,711 2,428<br />
Average Sales/Unit ($000) 335 339 -<br />
Concept Positioning |<br />
Subway Sandwiches & Salads is the world’s second largest fast food operation that offers sit-down and carryout service to a<br />
primary customer base between the ages of 18 and 35; the customer base is 65% male. Carryout orders account for 65% of<br />
sales. Each restaurant may feature two special sandwiches appealing to local tastes. Many of the sandwiches are also<br />
available as salads, served in disposable plastic containers.<br />
Restaurants are often located in strip centers, malls, key downtown areas, and near college campuses. Some are<br />
freestanding. There are also 3,209 non-traditional locations, such as c-stores, truck stops, college campuses, grocery stores,<br />
military bases and hospitals. A typical unit averages 1,000 sq. ft., with seating for 25 patrons. The smallest stores, however,<br />
occupy only 300 sq. ft. and have no seating, while larger ones measure 2,000 sq. ft. and have seating for 40 people. Some<br />
units have drive-through windows. The interior-decorating program utilizes a yellow and green color scheme and a new<br />
“Tuscany”-inspired decor.<br />
Fred DeLuca and Dr. Peter Buck founded the company in Bridgeport, CT, in 1965. The first franchise was sold in 1974.<br />
Doctor's Associates Inc. franchises the privately owned concept. Current expansion plans call for the development of<br />
approximately 950 units per year through 2005.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
625
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: 6-inch or foot-long hot or cold submarine sandwiches, each made to order; best sellers include Cold Cut Trio<br />
and turkey breast. Variety of breads, including Italian, wheat, Hearty Italian, Parmesan Oregano and Harvest Wheat, baked<br />
fresh each day. Also menus deli-style sandwiches and Kids’ Pak—4-in. round sandwich, cookie, small drink and optional<br />
premium for $1.99. Features 7 low-fat subs with 6 gm of fat or less—Veggie Delite, Turkey Breast, Turkey Breast and Ham,<br />
Ham, Roast Beef, Subway Club and Roasted Chicken Breast. Subway Selects menu includes: Honey Mustard Melt,<br />
Horseradish Roast Beef, Asiago Caesar Chicken and Southwestern Steak and Cheese. Soft drinks served. Breakfast menu<br />
includes up to six breakfast sandwiches as well as fresh muffins, Danish, juice and coffee. Check Averages: $5–$7.<br />
Expansion Plans |<br />
Eddie Merlot’s Prime Aged Beef and Seafood, a steakhouse concept with a prototype in Ft. Wayne, IN, has three more units<br />
under construction in suburbs outside of Indianapolis, Dallas and Minneapolis. Founder and owner Bill Humphries, who also is<br />
a Subway subfranchisor of 250 units, is positioning the new concept to appeal to women, baby boomers and younger diners in<br />
their 30s. Locations being sought by Humphries are in affluent suburban neighborhoods where the average household income<br />
is over $75,000. He plans to do a private placement next year and is scouting potential sites in Las Vegas, Denver, Phoenix,<br />
Seattle and some Florida markets. The prototype Eddie Merlot’s, which seats 230 and is only open for dinner, reports first-year<br />
sales of nearly $4 million. Checks average $58. Among menu items geared to women are six salads and smaller cuts of<br />
steaks, including a 12-oz. New York strip and an 8-oz. filet mignon. (Nation’s Restaurant News)<br />
<strong>Menu</strong> Development |<br />
Horseradish is being used to add a bold kick to flavor profiles of foods ranging from salads and sandwiches to steaks. Just as<br />
ingredients such as Thai chilies and wasabi have gained favor as consumers look for greater impact in their foods, horseradish<br />
is enjoying the same popularity while maintaining its approachability as a more familiar component. <strong>Menu</strong> applications include:<br />
■ Pulled Pork Sandwich—served on ciabatta with horseradish sauce and chipotle barbecue sauce, Union Square Grill, Seattle<br />
■ Horseradish Steak & Cheese Sub, Subway ■ Turkey and Avocado on Baguette—with horseradish mustard and tomato, 535,<br />
New York ■ Chilled Filet Mignon—with horseradish potato salad, Brasserie Vert, Los Angeles ■ Tomato & Mozzarella Salad—<br />
with balsamic vinegar, fresh horseradish and watercress, Thyme, Chicago. (Restaurants & Institutions)<br />
Subway expanded its Selects line of sandwich sauces with a new Chipotle Southwest offering. It combines buttermilk, onion<br />
and smoked jalapenos and is being positioned as a complement for a steak, roast beef or chicken sub as well as a salad<br />
dressing. The sauce is being featured in a new Chipotle Southwest Steak and Cheese Sandwich, which is to be offered<br />
through July 6. Other sauces in the Selects lineup are: Dijon Horseradish, fat-free Honey Mustard, fat-free Sweet Onion and<br />
fat-free Red Wine Vinaigrette. (Company Release, NRN Daily NewsFax)<br />
Subway extended its Selects line with a Chicken Pizziola sub. The hot sandwich, priced between $4 and $5, features chicken<br />
breast strips, sliced pepperoni, tomatoes, oregano, cheese and marinara sauce. (NRN Daily NewsFax, 7/14/03)<br />
Lighter sandwiches emphasizing fresh ingredients are increasingly common in the limited-service segment as operators work<br />
to boost the healthy options on their menus. Schlotzsky’s is just one example. The chain is currently testing 13 “lighter side”<br />
offerings with nine grams of fat or less. Others have also created sandwiches for health-minded consumers, though taste and<br />
flavor remain priorities. Examples include: ■ Turkey Sandwich—with banana peppers, black olives, cucumbers, red onions,<br />
tomatoes, field greens and fat-free champagne vinaigrette on a baguette, Arby’s ■ Spicy Chipotle Chicken—with chipotle<br />
mayonnaise, red onions, romaine lettuce and roma tomatoes on Tuscan herb bread, Schlotzsky’s ■ Chicken Stir-Fry D’Lite—<br />
grilled chicken, mushrooms, peppers, onions, lettuce and tomatoes with fat-free garlic or ginger sauce, D’Angelo Sandwich<br />
Shops ■ Sweet Onion Chicken Teriyaki—teriyaki-glazed chicken strips, lettuce, tomatoes, onions, green peppers, olives and<br />
fat-free sweet onion sauce on choice of bread, Subway. (Restaurants & Institutions, 8/1/03, p29)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
626
<strong>RISE</strong> COMPANY PROFILE<br />
Vegetarians can now enjoy a greater variety of options on fast-food menus as operators work to meet demand for healthier<br />
foods and appeal to consumers, especially women, who are likely to eat elsewhere to find healthy choices. Upgraded salads,<br />
soy burgers, veggie wraps and soups, and yogurt smoothies are increasingly common. Burger King now offers a Veggie<br />
Burger, which can be prepared on a separate grill from its meat options upon request. It also has several side salads. Chipotle<br />
positions itself as a fresher approach to Mexican and offers a variety of meatless options, including a vegetarian burrito that<br />
can be customized, a side of rice and beans, and guacamole. McDonald’s also has a McVeggie Burger and has supplemented<br />
its menu with a line of premium salads served with Newman’s Own dressings. Subway offers a Veggie Delite sandwich, and<br />
select stores offer Gardenburger products. Wendy’s now has a range of meatless options, including four Garden Sensations<br />
salads and baked potatoes with several meatless toppings. Panera also broadened its vegetarian options this year. While it<br />
previously only offered vegetarian salads and soups, it now serves a Garden Vegetable Sandwich on ciabatta bread.<br />
(Vegetarian Times, 9/03, p63)<br />
Major limited-service chains are reworking their kids meals to make them healthier. Subway has revamped its Kids Pak with a<br />
fruit roll-up instead of a cookie and 100% fruit juice instead of a soft drink. The sandwich remains the same. The meals also<br />
include “Jared’s Steps to Healthier Kids” information cards. Named for spokesman Jared Fogle, they include toys designed to<br />
encourage activities such as golf, football and kite-flying. Wendy’s is also testing kid-oriented items that offer reduced-fat white<br />
or low-fat chocolate milk as a soda alternative and a fresh fruit cup option to replace fries if desired. (Food Institute Report<br />
9/29/03 p7, Brandweek 9/22/03 p5, NRN Daily News Fax 10/1/03)<br />
Subway is testing two new low-carbohydrate sandwiches in the Detroit and Ann Arbor, MI, markets. One is a turkey bacon<br />
melt with Monterey Jack and Cheddar cheeses, and the other is a Chicken Bacon Ranch Roll-Up with Swiss. Both are made<br />
with a tortilla wrap that has 11 grams of carbohydrates instead of a bread roll that has a least 30 grams of carbohydrates. Both<br />
sandwiches are priced at $4.99. (NRN Daily NewsFax 12/5/03)<br />
Toasting has been a key point of differentiation for Quiznos sandwiches, but Subway is now planning on installing toasters in<br />
its own stores. The ovens are an effort to stave off competition from Quiznos. Subway has refused to comment, but a number<br />
of franchisees have reported that the toaster ovens are on their way and slated to be added next summer. (Brandweek 12/1/03<br />
p8)<br />
International Activities |<br />
Subway Restaurants opened its 50th location in Germany. The franchised restaurant is in Cologne. (CR 9/30/03<br />
Subway opened its first unit in the Czech Republic. The restaurant is located in Prague. It also opened its 500th Australian<br />
outlet and its 1,800th Canadian location. The Australian unit is in the Melbourne suburb of Carlton while the Canadian<br />
restaurant is in Hull, Quebec. (CR 10/3/03, 10/3/03 & 10/23/03)<br />
Technology |<br />
MICROS Systems, Inc. has installed a new point-of-sale (POS) system at The Stinking Rose restaurant in San Francisco. The<br />
MICROS 3700 POS featured both software and hardware components, including 10 handheld terminals. The information<br />
technology solutions provider also implemented the restaurant's new credit card approval system, transporting credit card data<br />
via the restaurant's Web connection. In other news for MICROS, Rottinghaus Co., a franchisee of Subway, has installed 100<br />
MICROS Eclipse PC workstations for its 136 locations. Supporting Microsoft's popular operating systems, the Eclipse PC<br />
replaces the original Model 64 PC workstations. (Company Release 8/6/03 & 8/7/03)<br />
Instill reported that it signed an agreement with Independent Purchasing Co-op (IPC) for Subway. Under the deal, IPC will use<br />
Instill's Quality Management solution, a Web-based application suite for product quality and regularity compliance. It will also<br />
enable efficient and effective processing and tracking of information. IPC is owned by Subway franchisees and provides<br />
purchasing and supply chain management services to the restaurant system. (Foodservice.com 10/14/03)<br />
Personnel |<br />
Frederick DeLuca, President<br />
William Schettini, Chief Marketing Officer<br />
Suzanne Greco, <strong>Menu</strong> Development/R&D<br />
Steve Lawrence, Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
627
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
The 100 largest U.S. restaurant companies in 2002 matched their 2001 performance, according to <strong>Technomic</strong> Inc. The<br />
aggregate annual rate of growth for those top operators was 4.7%. Their U.S. systemwide sales rose to $145.8 billion, a $6.6<br />
billion gain over the same chains’ 2001 results. The highest rate of growth in 2002 was in the “bakery/other sandwich”<br />
category, which grew 13.7%. The doughnut category was up 13%. The “broad menu” as well as Italian categories had sales<br />
growth that topped 8%. Among the fastest-growing chains were Starbucks, Ruby Tuesday, Subway, Chili’s Grill & Bar, Golden<br />
Corral and Sonic, according to <strong>Technomic</strong>. (NDNF 5/8/03)<br />
While all data is not yet available, we are far enough along to review some of the preliminary highlights from our analysis of the<br />
Top 100 and Second 100 chain company results. On a segment basis, the best performers were as follows: Casual Dining:<br />
The only segments showing strong double-digit growth were Italian and two emerging/small ones, namely Asian and<br />
Barbecue. Among the other major segments, Bar & Grill and Steak both outperformed the total Top 200 growth. Limited<br />
Service: Chain performance in this category clearly reflects the changing consumer preferences. Hamburger sales rose less<br />
than 3% while Other Sandwiches, e.g., Subway, grew 12%; Bakery Cafes, e.g., Panera, increased 30%; Donuts, e.g., Dunkin’<br />
Donuts and Krispy Kreme, grew 12%; and Specialty, driven by Starbucks, climbed 13%. Midscale: Chains in this category<br />
continued to struggle, with only one chain, Golden Corral, larger than $100 million able to grow in excess of 10%. Confirming<br />
the squeeze these chains face, 10 of the 22 midscale chains we analyzed recorded declines in sales. Another major trend<br />
confirmed by this analysis is that Chain Growth for 2002 has shown only modest single-digit growth and will likely continue this<br />
pattern. The base is so large that it will be difficult to see a return to the double-digit growth the chain industry showed during<br />
the 1980s and early ‘90s. Of the 31 chains that had sales in excess of $1 billion, only the eight listed below grew in excess of<br />
10%. Chain Sales ($B) Growth (%) Starbucks $2.9 23% Ruby Tuesday 1.2 17 Subway 5.2 16 Chili's 2.2 13 Golden Corral 1.2<br />
12 Sonic Drive-In 2.2 11 Applebee’s 3.2 11 Chick-fil-A 1.4 11 From a review of this data, we can reach three major<br />
conclusions. • Industry growth and the growth of chains will be more closely aligned than in the past, i.e., overall chain share of<br />
the market will increase very slowly going forward. • The midscale category continues to struggle, possibly posing an<br />
opportunity for some innovative concepts to emerge. • Emerging niches and selected chains will dramatically outperform the<br />
“averages.” Next month we’ll discuss this aspect in more detail. Thus, AS I SEE IT, monitoring chain performance continues to<br />
be a productive way to accurately measure both industry trends and confirm actual shifts in consumer spending.<br />
CHICAGO, May 7, 2003/PRNewswire/ -- Despite a weakened economy and growing concerns over war in the Middle East in<br />
2002, the largest U.S. restaurant companies matched their 2001 performance. In its annual survey of the Top 100 leading<br />
chain restaurant companies, foodservice consultancy <strong>Technomic</strong> Inc. found that the annual rate of growth for these top players<br />
was 4.7 percent. U.S. systemwide sales for the Top 100 rose to $145.8 billion in 2002, up $6.6 billion over 2001 on a samechain<br />
basis. Such growth supports the perception that foodservice, and the restaurant industry in particular, has become<br />
relatively insulated to swings in the economy and remains a dynamic player in the U.S. business environment. Among the<br />
major foodservice segments represented within the Top 100, the Bakery/Other Sandwich category exhibited the highest rate of<br />
growth at 13.7 percent. Donuts were a close second, however, at 13 percent. Other foodservice segments with sales growth<br />
over 8 percent were the full-service categories Broad <strong>Menu</strong> and Italian. While domestic sales growth in 2001 outpaced that of<br />
international operations, this trend was reversed in 2002. Sales from international operations among Top 100 companies<br />
increased 5.7 percent in 2002, significantly higher than 1.8 percent in the prior year. Of the 188 chains within the Top 100<br />
restaurant companies, only 76 chains operated units internationally. International sales for the Top 100 chains equaled roughly<br />
34 percent of their domestic counterparts. In terms of total growth rates, Starbucks is plainly the largest of the fastest-growing<br />
chains (displayed below). However, five other major chains with sales over $1 billion also achieved double-digit growth in 2002<br />
including Ruby Tuesday (17 percent), Subway (16 percent), Chili’s (13 percent), Golden Corral (12 percent) and Sonic (11<br />
percent). The Ten Fastest-Growing Chains With Sales Over $200 Million, Ranked by Percentage Increase in Sales in 2002 vs.<br />
2001 2002 U.S. % Sales % Unit Rank Chain Sales ($ millions) Change Change 1 Quizno’s Classic Subs $615* 68% 39% 2<br />
Chipotle 225 * 55 31 3 Panera Bread/St. Louis Bread Co. 755 43 30 4 Baja Fresh Mexican Grill 249 41 39 5 Krispy Kreme 622<br />
39 25 6 Culver’s Frozen Yogurt 280 30 26 7 Buffalo Wild Wings Grill & Bar 282 28 26 8 P.F. Chang’s China Bistro 400 28 21 9<br />
Carrabba’s Italian Grill 343 24 19 10 Starbucks 2,940 23 19 Total $6,711 32% 25% *<strong>Technomic</strong> estimate Quick-casual chain<br />
growth has slowed but continues to claim substantial and well-deserved attention. Considered as a group, the 15 largest<br />
quick-casual chains achieved collective sales growth of over 12 percent in 2002, down from 17 percent in 2001. The fastest<br />
growing quick-casual chain was Atlanta Bread Company, with over 59 percent sales growth. Four other quick-casual<br />
operations─Chipotle, Panera Bread/St. Louis Bread, Baja Fresh Mexican Grill and Corner Bakery─all turned in sales<br />
performances in excess of 15 percent. While the Top 100 chains posted strong growth in the aggregate, individual results<br />
varied dramatically with sales ranging from 68 percent growth to 14 percent declines; 24 of these chains showed sales<br />
declines in 2002. Both winners and losers appeared in each segment and menu category. These widely mixed results only<br />
serve to demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify<br />
and focus upon the winners. Other areas of growth, 5-, 10- and 20-year trend analyses, market share by menu category, and<br />
much more are included in the <strong>Technomic</strong> Top 100 report. To learn more or to order a copy, please contact Chris Urban at<br />
312-876-0004, ext. 229 or curban@technomic.com. Source: <strong>Technomic</strong> Inc. Contact: Chris Urban, 312-876-0004 ext. 229 or<br />
curban@technomic.com Note: Editors may request additional charts and graphs through the contact above<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
628
<strong>RISE</strong> COMPANY PROFILE<br />
Chicago, March 24, 2003, Business Wire—Estimated at $150 billion annually, the foodservice sandwich category is a major<br />
driver of industry sales. Recent trends, however, indicate that the category is undergoing several fundamental shifts. For<br />
example, “hot” sandwiches, particularly hamburgers, are losing ground while toasted deli-style sandwiches are enjoying<br />
growth. Consumer preferences also appear to be shifting with regard to venues. Quick casual and other sandwich operators<br />
(like Subway) are experiencing double-digit growth, even as traditional quick service segments are struggling. Operators are<br />
using an ever-widening number of breads, meats, cheeses, condiments and other items to increase the variety and appeal of<br />
their offerings. These shifts also represent a distinct opportunity to foodservice manufacturers hoping to appeal to the needs of<br />
their operator clients. With this in mind, <strong>Technomic</strong> is launching a new study, “The Evolving Sandwich CategoryTM: A<br />
Comprehensive Assessment of Trends and Opportunities.” The study will provide an intense examination of both consumer<br />
and operator attitudes and practices regarding the entire sandwich category, including breakfast sandwiches, hot sandwiches,<br />
deli-style sandwiches, and wraps, as well as related items such as tacos and burritos. The study’s primary focus will be on<br />
quick and full service restaurants, including quick casual, c-stores, supermarket delis, and foodservice management firms. In<br />
addition to extensive and detailed coverage of the entire sandwich category, sponsors will receive specific analysis and<br />
recommendations regarding their proprietary brands or companies. To learn more about “The Evolving Sandwich<br />
CategoryTM,” including details on methodology and sponsorship costs, please contact Alan Hyatt, Senior Principal of<br />
<strong>Technomic</strong>, Inc. at 312-876-0004, ext. 246 or ahyatt@technomic.com.<br />
A recent study from Tufts University revealed that although many consumers perceive menu items in the quick-casual<br />
segment to be healthier than traditional fast-food, some of those foods are higher in both fat and calories. According to its<br />
research, a McDonald’s Quarter Pounder with Cheese has less fat and calories than both Panera’s Smoked Ham & Swiss<br />
sandwich and Baja Fresh’s Steak Burrito. It also revealed that Jack in the Box’s Chicken Fajita Pita contained less than half<br />
the fat and calories of Au Bon Pain’s Chicken Caesar Wrap and a regular-sized McDonald’s hamburger and six-inch turkey<br />
breast sub from Subway both have less calories and fat than a traditional vegetable sandwich on multigrain bread at Panera.<br />
(Nation’s Restaurant News)<br />
Subway Restaurants added a new chipotle southwest sauce to its line of “Select” sauces, which include dijon horseradish, fatfree<br />
honey mustard, fat-free sweet onion and fat-free red wine vinaigrette. Its more than 18,500 outlets charge $4–$5 for 6inch<br />
Selects sandwiches. (NDNF 5/22/03)<br />
Subway named a new creative agency of record for its estimated $200 million account. Publicis Group’s Fallon Worldwide of<br />
Minneapolis was chosen to replace Euro RSCG MVBMS Partners, which held the Subway account since 2000 and created<br />
the campaign featuring Jared Fogle, who lost nearly 250 pounds by eating nothing but Subway sandwiches for a year. Fallon’s<br />
first Subway spots are expected to break this fall. The 19,000-unit chain’s advertising is overseen by the Subway Franchise<br />
Advertising Fund Trust. (NRN 7/28/03 p166)<br />
Subway operates units at 170 colleges and expects to add more than 30 new branches this year. It also has units in 62<br />
hospitals and would like to increase that by 50% this year. (R&I 7/15/03 p81)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
Subway Restaurants has changed the nutritional makeup of its Kids’ Pak meal by adding fruit juice and a fruit roll-up. In<br />
addition, the meals also include “Jared’s Steps to Healthier Kids” information cards. Toys included with the meals are designed<br />
to encourage activities such as golf, football and kite-flying. In addition, the company has redesigned its Web site for kids to<br />
include health information and educational games. In addition, the chain has broken a new adult-oriented TV campaign<br />
focusing on its low-fat menu offerings. The “It’s OK” campaign emphasizes that consumers can feel good about other food<br />
choices by including Subway sandwiches as a regular part of their diet. (NDNF 9/23/03 & 10/1/03)<br />
Subway Restaurants announced that Coca-Cola will become its global beverage supplier, replacing PepsiCo. Specifics of the<br />
contract were not disclosed. Subway said the deal came after a year-long comprehensive evaluation and negotiation process.<br />
In other news, Coca-Cola Co. will cut 2,800 jobs worldwide, double the number of cuts that had been announced earlier this<br />
year. Of the 900 additional jobs to be cut, most will be at bottlers in Asia. As of September 30, some 1,600 employees already<br />
had been let go. Separately, Coca-Cola reportedly will change the name of Diet Sprite in the U.S. to Sprite Zero next year. The<br />
diet drink also may be reformulated. (NDNF 12/2/03; FIR 11/3/03 p6 & 12/1/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
629
<strong>RISE</strong> COMPANY PROFILE<br />
Turkey sales within the foodservice industry rose 7.3% during the first half of 2003, according to the National Turkey<br />
Federation’s annual membership survey. The top sellers among foodservice operators are fully cooked deli meats such as<br />
turkey breast, salami, bologna and other cured products. The NTF notes that increased sales can be attributed to an increase<br />
in the number of signature sandwiches containing turkey that are being offered by chains such as Subway, Arby’s and Einstein<br />
Bros. (NRN 11/10/03 p94)<br />
Subway Restaurants reportedly is testing two new low-carb sandwiches in Detroit and Ann Arbor, MI. The sandwiches are a<br />
turkey bacon melt with Monterey Jack and Cheddar cheeses, and the other is a Chicken Bacon Ranch Roll-up with Swiss.<br />
Both will be made with tortilla wraps, which have 11 grams of carbohydrates versus at 30 grams or more found in a bread roll.<br />
The two new items reportedly are slated for a January 1 national rollout. Subway would not comment. (NDNF 12/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
630
T S Restaurants<br />
Headquarters<br />
2530 Kehaa, Lahaina, Hawaii 96761 USA<br />
Tel: (808) 667 4800 Fax: (808) 669 8754<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 85,700 80,400 80,000<br />
Company-owned ($000) 85,700 80,400 80,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 12 12 12<br />
Company-owned 12 12 12<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 7,140 6,700 6,666<br />
Concept Positioning |<br />
T S Restaurants is a group of eight different casual-dining steak and seafood concepts. Single units include The Cliffhouse,<br />
Hula Grill, Keoki’s Paradise, Kimo’s, Leilani’s on the Beach and Sunnyside Resort. Its Duke’s and Jake’s concepts have more<br />
than one location.<br />
Concepts are a reflection of the culture and heritage of its surrounding community. Each unit takes advantage of its waterfront<br />
or resort location with floor-to-ceiling windows and outdoor patios or bars. Some of the units even provide live entertainment.<br />
Although each unit offers its own unique style, they all have similar menus.<br />
Units average 8,000 sq. ft. with seating for 200 guests in the dining-room area and another 100 seats available in the bar.<br />
T S Enterprises was started in March 1977 when two college friends, Sandy Saxten and Rob Thibaut opened their first<br />
restaurant, Kimo’s, in Maui. The company has not opened another unit since 1998, when it opened a Duke’s in Huntington<br />
Beach, CA.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
631
T.G.I. Friday's<br />
Headquarters<br />
7540 LBJ Freeway, Dallas, Texas 75251 USA<br />
Tel: 972/450 5400 Fax: 972/450 3644<br />
www.fridays.com<br />
Ownership: Private<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 2,050,000 2,000,000 -<br />
Company-owned ($000) 970,000 955,000 -<br />
Franchised ($000) 1,080,000 1,045,000 -<br />
U.S. Number of Units 522 512 -<br />
Company-owned 245 239 -<br />
Franchised 277 273 -<br />
International Sales ($000) - 406,500 -<br />
International Units 191 183 -<br />
Average Sales/Unit ($000) 3,550 3,500 -<br />
Concept Positioning |<br />
T.G.I. Friday's are casual dining, limited menu theme restaurants designed to appeal to the 21–49 year old age group. Units<br />
average 8,700-sq. ft. and feature a large, four-sided bar surrounded by tiered seating on a multilevel floor plan. It has a dining<br />
capacity of 235 persons and bar seating for 40. Its 5,200-sq. ft. prototype unit has 220 seats for diners, eliminates the<br />
multilevel floor plan and has a one-sided bar that seats 20. Both are decorated with amusing memorabilia and have the chain's<br />
signature exterior red and white awning. Many units also have an outdoor patio or greenhouse.<br />
In addition, the group also owns one Dalts, operated through Carlson Restaurants Worldwide and is developing Front Row<br />
Sports Grill, an oversized sports bar with billiards, shuffle board, video games and interactive TV, and Friday’s America Bar, a<br />
burgers and beer place.<br />
Front Row Sports Grill was originally launched to serve the sports fan with higher quality foods than traditionally offered at<br />
sport stadiums and other sporting events. The first unit opened in 1994 in The Ballpark in Arlington, TX, and became the first<br />
full-service, casual-dining restaurant in a professional U.S. ballpark. The concept is built around an extensive menu and<br />
beverage selection in a sports bar-like atmosphere. Units house sports memorabilia, state-of-the-art technology with multiple<br />
televisions screens (60–75 per unit) and an assortment of games, ranging from billiards to virtual reality interactive games.<br />
Units average 17,000–23,000 sq. ft.<br />
Designed as a neighborhood bar, Friday’s American Bar is a casual and quaint gathering place that offers a variety of food,<br />
beverages and music for its guests. Units are small and range from 1,000– 3,500 sq. ft. and are located in airports. Fresh<br />
sauces, dressings, batters and mixes are prepared on the premises, generally from scratch. The company's headquarters<br />
control much of the purchasing for the restaurants including suppliers, product quality and distribution channels. Produce and<br />
certain perishable items are obtained locally to ensure freshness. The chain also has a line of branded merchandise such as<br />
duffel bags, watches and shirts.<br />
The first T.G.I. Friday's opened in 1965 in Manhattan. Carlson acquired the company in 1975 with the founder keeping the<br />
original restaurant. In 1983, the majority interest went public, although Carlson continued to have stock holdings. Carlson<br />
purchased the remaining stock February 1990. In 1998, the company changed its name to Carlson Restaurants Worldwide.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
632
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature Item: Jack Daniel's Grill and Shrimp Platters. Also menus steaks, ribs, sandwiches, hamburgers and chicken.<br />
Appetizers include mozzarella sticks, buffalo wings and potato skins. Deserts range from Chocolate Rush, a serving of varied<br />
types of mousse, to Oreo Madness, which features Oreo cookies sandwiched with vanilla ice cream. Full liquor service<br />
available.<br />
<strong>Menu</strong> Development |<br />
T.G.I. Friday’s is promoting three new summer salads. Its Strawberry Fields Salad is a blend of mixed greens, Parmesan<br />
cheese and glazed pecans tossed in balsamic vinaigrette dressing and topped with balsamic-marinated strawberries, shaved<br />
Parmesan cheese and cracked black pepper. Its Southwest Caesar features romaine lettuce tossed with Parmesan cheese<br />
and southwest Caesar dressing topped with slices of chipotle-marinated grilled chicken breast, crispy tortilla strips, croutons,<br />
pico de gallo and cilantro. Finally, the Pecan-Crusted Chicken Salad is pecan-crusted chicken served sliced and chilled on<br />
salad greens tossed with mandarin oranges, sweet glazed pecans, dried cranberries, crumbled blue cheese and balsamic<br />
vinaigrette dressing. (Company Web Site)<br />
Dessert beverages based on popular sweets are being used to add a unique alternative for after-dinner options. While limitedservice<br />
chains have long offered dessert-oriented beverages such as Starbucks toffee nut crème and caramel apple cider, fullservice<br />
concepts are now exploring these drinks. Dylan Prime in New York serves a series of alcoholic beverages called “pietinis”<br />
that are based on popular desserts such as apple pie a la mode, peach cobbler and Key lime pie. The peach cobbler pietini<br />
is a blend of peach schnapps, fresh peach puree and simple syrup. It is poured in a martini glass rimmed with cinnamon<br />
sugar and layered with vanilla liquor and heavy cream. T.G.I. Friday’s offers a similar collection with drinks inspired by<br />
strawberry shortcake, banana splits and ice cream sandwiches. Its banana split blends three liqueurs with bananas,<br />
strawberry and vanilla ice cream. For nonalcoholic options, Bubba Gump Shrimp Co. serves an assortment of dessert<br />
smoothies in flavors such as Oreo Cookie and an Alabama Sweet offering that blends peanut butter, chocolate and nonfat<br />
vanilla frozen yogurt. (Nation’s Restaurant News)<br />
T.G.I. Friday’s launched a new Sizzling Chicken & Cheese entrée. Available through May 3, it featured marinated chicken over<br />
melted cheeses and sautéed vegetables. The dish was served with mashed potatoes in a sizzling skillet and priced at $8.99.<br />
In addition, the chain promoted several other new menu offerings. In addition to a Strawberry Lemonade made with fresh<br />
strawberries, lemon juice, Bacardi Limon Rum and Cointreau, new food offerings include: ■ Strawberry Fields Salad—mixed<br />
greens, Parmesan cheese and glazed pecans tossed in balsamic vinaigrette dressing; topped with fresh balsamic marinated<br />
strawberries and cracked black pepper ($6.29) ■ Garlic Chicken—sautéed garlic-marinated chicken breasts topped with crispy<br />
garlic chips and served with mashed potatoes and sautéed mixed vegetables ($8.79) ■ Southwest Caesar—romaine tossed<br />
with Parmesan cheese and southwest Caesar dressing; topped with chipotle marinated chicken, tortilla strips, croutons, pico<br />
de gallo strips and cilantro ($8.59). (Company Web Site)<br />
Ethnic foods are gaining visibility on chain menus, even in concepts that are not specifically devoted to an ethnic cuisine.<br />
Mexican, Italian, Asian, Mediterranean and Caribbean/Latin are showing particular strength. Asian is evident at T.G.I. Friday’s<br />
with its Shrimp Summer Rolls. The item features poached shrimp rolled inside a spring roll with asparagus, Asian vegetables<br />
and noodles tossed in peanut dressing flavored with cilantro. Soy-ginger dipping sauce accompanies it. An Indian influence<br />
can be found on Panera’s menu, which includes Chai Tea Latte (brewed black tea with honey, vanilla, cardamom, cinnamon,<br />
ginger and steamed milk). According to research on the top 200 chains from Food Beat Inc., menu items on the rise include<br />
Mexican omelets and breakfast quesadillas, rice flavored with citrus and spices, Asian noodles, artichokes, several seafood<br />
varieties, dipping sauces, plantains, mangoes, pineapples, bananas, salsa and flavored breads. <strong>Menu</strong> descriptions are also<br />
becoming more detailed, and often include the origin of ingredients (e.g., Atlantic salmon) as well as a specific variety (e.g.,<br />
Serrano or ancho chilies). The growth of ethnic foods on chain menus is attributed in part to greater travel by Americans, who<br />
as a result have become exposed to new foods and flavors and would like to see these elements in foods they can get at<br />
home. (The State Journal Register)<br />
Upscale ingredients are increasingly common on chain menus as operators work to combat slowing growth and heated<br />
competition. As a result, some of the latest trends in fine-dining are filtering down to casual-dining at a much greater pace.<br />
Examples are plentiful. T.G.I. Friday’s is now serving a Roma tomato bruschetta, while Bahama Breeze offers ahi tuna<br />
ceviche. Bennigan’s is now offering filet mignong in a port wine demi-glaze, while Chili’s has its own version of the molten<br />
chocolate cake popularized by chef Jean-Georges Vongerichten. (Wall Street Journal)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
633
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are being updated on chain menus with interesting protein substitutions, unexpected toppings and ethnic accents.<br />
Houlihan’s, Baker’s Square and T.G.I. Friday’s emphasize quality beef with USDA Choice Chuck, USDA sirloin and natural<br />
Angus beef, respectively. Others are differentiating their burgers with non-beef bases. Denny’s serves a chicken burger with<br />
spicy Buffalo sauce, while the turkey burger at House of Blues is enhanced with Jamaican jerk spice and mango mayonnaise.<br />
Meatless options are also gaining ground. The California Veggie Burger at Cooker Bar and Grill features whole grains, nuts<br />
and salsa. Cheese is still the favored topping, with 75% of all new burgers including cheese, according to Chain Account <strong>Menu</strong><br />
Survey. Yet interesting varieties are often featured on these sandwiches. Claim Jumper features manchego, while Rock<br />
Bottom offers jalapeno cream cheese and Bennigan’s includes Parmesan on its toppings list. Added protein is the goal of the<br />
toppings served with Red Robin’s royal burger that includes a fried egg and three strips of bacon. Upscale elements are also<br />
increasingly used. At Max & Erma’s the brick beer burger is braised in Samuel Adams beer, while Tony Roma’s garnishes its<br />
burger with merlot mushrooms. Carriers are also more premium affairs. Houlihan’s uses toasted brioche buns for its burgers,<br />
while IHOP features Parmesan grilled sourdough bread and Big Boy uses a toasted rye bun. Ethnic cuisines are also<br />
influencing chain burger offerings. Friendly’s showcases Tex-Mex with its Southwestern Burger topped with spicy ranchero<br />
con queso, green chili peppers and melted pepper Jack cheese. Latin America is being explored by Champps with its Brazilian<br />
Barbecue Burger, while Coco’s is showcasing Mediterranean with a turkey burger topped with creamy pesto mayonnaise.<br />
(Nation’s Restaurant News)<br />
T.G.I. Friday’s rolled out four menu items systemwide. New are the Strawberry Fields Salad ($6.29), topped with balsamicmarinated<br />
strawberries, shaved Parmesan cheese and cracked pepper; the Southwest Caesar Salad ($8.59), topped with<br />
slices of chipotle-marinated grilled chicken breast; a garlic chicken entree ($8.79); and sauteed chicken breasts over onions<br />
and peppers with melted American and Mexican cheeses ($8.99). The Carlson Restaurants Worldwide-owned chain operates<br />
and franchises 522 domestic restaurants. (NDNF 4/8/03)<br />
T.G.I. Friday’s is offering a fixed-price menu promotion for two through March 17. Its “Share the Fun” deal allows diners to<br />
choose one appetizer and two entrees from a limited menu for $19.99. Starter choices are Fried Mozzarella, Pot Stickers and<br />
Potato Skins. Entrée selections include Grilled Chicken Caesar Salad, Bruschetta Chicken Pasta, Classic Sirloin, Friday’s<br />
Shrimp and Chicken Fingers. (Restaurant Business Daily News)<br />
T.G.I. Friday’s is emphasizing flavorful chicken dishes in its latest promotion. The three featured entrees are: ■ Garlic<br />
Chicken—a pair of garlic-marinated chicken breasts topped with crispy garlic chips and served with sautéed roma tomatoes,<br />
red pepper, zucchini and squash ($8.79) ■ Sizzling Chicken & Cheese—two marinated, sautéed chicken breasts over onions<br />
and peppers with melted American and Mexican cheeses ($8.99) ■ Bruschetta Chicken Pasta—fresh roma tomato salsa<br />
tossed with angel hair pasta and topped with a sliced chicken breast, a wedge of ciabatta garlic bread and balsamic glaze<br />
($9.99). (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 7/29/03)<br />
T.G.I. Friday’s applies an Asian accent to add interest to a classic tuna salad sandwich. Its Tuna Wasabi Salad Sandwich<br />
features white albacore tuna mixed with a wasabi-ginger base, mayonnaise, fresh pineapple and water chestnuts on brioche. It<br />
gets extra zip from a wasabi-soy mayonnaise. The sandwich is served with field greens and crispy Chinese noodles.<br />
(Restaurant Business 9/15/03 p43)<br />
T.G.I. Friday’s signed a licensing agreement with Atkins Nutritionals to create a new section of low-carb dishes for its menu.<br />
Offerings feature the Atkins name as well as net carbohydrates below each section. The menu includes a tuna-salad wrap,<br />
grilled chicken Caesar salad and five new entrees: chicken with broccoli; garlic chicken with mixed vegetables; char-grilled<br />
salmon fillet; a New York Strip with blue cheese; and Cheeseburger Cheeseburger—two beef patties topped with melted<br />
American cheese. A second phase of the partnership will be implemented next year, expanding on the original menu, which<br />
also includes appetizers. (Restaurant Business Daily News 12/5/03, Nation’s Restaurant News 12/15/03)<br />
Franchise Activity |<br />
T.G.I Friday’s franchisee Main Street and Main has cut it new store opening commitments under a revised deal with Friday’s<br />
parent Carlson Restaurants Worldwide. Under the new agreement Main Street will open 16 Friday's locations by the end of<br />
2009. (Restaurant Business Daily News 1/8/04)<br />
Personnel |<br />
Richard Snead, President<br />
Steve King, Chief Financial Officer<br />
Mike Archer, Chief Operating Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
634
<strong>RISE</strong> COMPANY PROFILE<br />
CiCi’s Pizza appointed Tom Koenigsberg chief marketing officer. He most recently was vice president of marketing, research,<br />
and development for the domestic T.G.I. Friday’s. (NRN Daily NewsFax 12/02/03)<br />
News & Other |<br />
T.G.I. Friday’s largest franchisee will close some “marginally performing” units. Main Street and Main Inc. will not renew the<br />
stores’ leases. In addition, it has slowed growth of its nine-unit Bamboo Club concept and terminated some existing leases.<br />
(NRN 3/24/03 p3)<br />
Ronald Reagan National Airport in Washington, DC, is the site of a test of Carry-On Cuisine, a service co-owned by a software<br />
development company and an online travel-booking firm. When travelers make flight reservations, they have the option of<br />
ordering an in-flight meal that will be waiting for them at the departure gate. Serving as the charter partner for the test is the<br />
T.G.I. Friday’s unit in the airport. <strong>Menu</strong> choices are limited to sandwiches since security regulations prohibit cutlery. The<br />
service hopes to soon take on other in-terminal restaurants as partners and to offer the program in other airports. (R&I 3/15/03<br />
p12)<br />
The Riese Organization, a multi-unit operator based in New York City, has switched to Pepsi-Cola North America as its<br />
exclusive soft-drink supplier at its more than 100 New York-area outlets. It signed a multi-year contract for Pepsi brands in<br />
fountain cups, bottles and cans. Among the concepts operated by Riese are T.G.I. Friday’s, Pizza Hut, Dunkin’ Donuts, KFC,<br />
Houlihan’s and Tad’s Steaks. Riese will convert from Coca-Cola products over a period of a few months. (NRN 2/24/03 p48;<br />
WRC 2/24/03)<br />
United Airlines is working with LSG Sky Chefs to test the trademarked In-Flight Café program, which uses meals from T.G.I.<br />
Friday’s. The program was tested for one week on United flights between Atlanta and Denver. (NRN 5/19/03 p3)<br />
Johnson Development Corp. was slated to open its 50th Starbucks in Milwaukee in September and has more than 20<br />
additional branches of the coffee brand in development and expected to open over the next 15 months. Johnson Development<br />
Corp. is headed by Earvin “Magic” Johnson. Through its Urban Coffee Opportunities, the Johnson-Starbucks Corp.<br />
partnership, Johnson’s goal is to operate 125 inner-city Starbucks Coffee outlets. The partnership currently has outlets in 12<br />
states and the District of Columbia. Johnson launched its co-development pact with Starbucks in 1998. The company also has<br />
a partnership with Dallas-based Carlson Restaurants Worldwide to develop Magic Johnson’s T.G.I. Friday’s, with two already<br />
in operation in Los Angeles and Atlanta. (NRN 9/1/03 p4)<br />
T.G.I. Friday’s will begin testing branded meal items on some Northwest Airlines flights in September through a partnership<br />
with LSG Sky Chefs. The new test will run on some 200 Northwest flights daily and will feature items developed for airline<br />
foodservice, including two selections for breakfast and a choice of an Asian or Southwestern salad or one of two sandwiches<br />
for lunch and dinner. Test prices range from $5–$10. Friday’s and Sky Chefs ran a one-week test with United Airlines last<br />
spring. (NDNF 8/28/03)<br />
T.G.I. Friday’s hired Interpublic Group’s Deutsch/LA as its advertising agency. The account is estimated at $50 million a year.<br />
(NRN 9/29/03 p64)<br />
The Tulsa Airport Authority awarded Anton Airfood a 10-year, $60 million contract. Anton will operate nine restaurants that are<br />
part of an airport expansion project. Among the brands that it plans to include are T.G.I. Friday’s, Mazzio’s and Camille’s<br />
Sidewalk Café and the local restaurants Mission Cantina and Goldie’s Patio Grill. Several Anton concepts also will be added.<br />
(NDNF 9/29/03)<br />
United Airlines will conduct another test of branded food sales from restaurants on board selected flights beginning October<br />
31. The 90-day test will be run on more than 200 flights daily in and out of United’s Chicago and Denver hubs. Each flight will<br />
last more than 3.5 hours. Offerings will include branded recipes from T.G.I. Friday’s, Bennigan’s and Hard Rock Café and will<br />
be prepared by LSG Sky Chefs and Gate Gourmet. (NDNF 9/26/03)<br />
T.G.I. Friday’s for the quarter ended September 29, reported same-store sales increased 2.3%. (Restaurant Business Daily<br />
News 11/10/03)<br />
T.G.I. Friday’s planned an early December debut of a nine-item Atkins-approved low-carbohydrate menu at all 529 of its<br />
domestic restaurants. T.G.I.F. parent Carlson Restaurants Wordwide has a multiyear contract with Atkins Nutritionals to work<br />
with T.G.I.F.’s research staff to develop more menu items. Prices will range from $6.99 for Buffalo wings to $15.79 for a New<br />
York strip steak with blue cheese. Friday’s is the first casual-dining chain to ink a contract with Atkins. (NDNF 12/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
635
<strong>RISE</strong> COMPANY PROFILE<br />
LSG Sky Chefs signed an exclusive agreement to adapt some Hard Rock Café menu items for its In-Flight Café program.<br />
United Airlines began serving items such as honey ham and cucumber on wheat croissant with a bowl of pineapple and<br />
strawberries along with a cup of flavored yogurt and a bottle of spring water as a breakfast meal. Sold by an airline attendant,<br />
the meals are $7 for breakfast and $10 for lunch or dinner. LSG’s other restaurant partners include Wolfgang Puck, T.G.I.<br />
Friday’s, Einstein Bros., Vie De France, D’Amico & Sons and Fresh City. The brands will be rotated among participating<br />
airlines approximately every 90 days. American Airlines and American Eagle are the carriers that have most recently begun<br />
testing In-Flight Café programs. Already implementing the program or still testing it are US Airways, Midwest Airlines,<br />
Northwest Airlines and United Airlines. (FSD 11/15/03 p20)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
636
Taco Bell<br />
Headquarters<br />
17902 Von Karman, Irvine, California 92614 USA<br />
Tel: (949) 863 4500 Fax: (949) 863 22<br />
www.tacobell.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 5,180,000 4,900,000 5,100,000<br />
Company-owned ($000) 1,540,000 1,300,000 1,250,000<br />
Franchised ($000) 3,640,000 3,600,000 3,850,000<br />
U.S. Number of Units 6,165 6,444 6,746<br />
Company-owned 1,284 1,265 1,162<br />
Franchised 4,881 5,179 5,584<br />
International Sales ($000) 160,000 135,000 135,000<br />
International Units 267 239 249<br />
Average Sales/Unit ($000) 940 880 1,075<br />
Concept Positioning |<br />
Taco Bell is the largest Mexican fast-food chain. Stores are positioned as low-cost, high-value restaurants. Major customer<br />
groups are teenagers and young adults. Sit-down, carryout and drive-through service is available. More than 60% of Taco<br />
Bell's orders are custom-made. Pinto beans are cooked fresh in the shop, and tortillas are fried on the premises.<br />
Most units are freestanding and feature a Spanish mission-style exterior. The interior color scheme includes orange, ocher and<br />
earth tones. A drive-through window is an integral part of all new units. A redesign program to create a more upscale image<br />
has retained the familiar red tile roof and mission arches, but extra outside lighting makes the units more visible at night. Twowindow<br />
drive-through facilities are also part of the redesign program.<br />
Taco Bell was founded by Glenn W. Bell in 1962 and acquired by PepsiCo, Inc. in 1978. In 1981, a franchise agreement was<br />
developed and activity begun. In early 1991, Taco Bell acquired Hot 'n Now and in May 1993, Chevys Mexican Restaurants. In<br />
early 1997, PepsiCo announced its intent to spin-off all of its foodservice holdings into a separate publicly held company. The<br />
separation was completed in October 1997 to Tricon Global Restaurants, Inc., and its Hot ‘n Now and Chevys holdings sold<br />
separately at the same time. Tricon eventually renamed to YUM! Brands, Inc., in 2002.<br />
<strong>Menu</strong> Positioning |<br />
Signature items include Chalupas and Gorditas. Tacos, tostadas, burritos, nachos, taco salads and pinto beans. Nonalcoholic<br />
beverages only. Dessert: cinnamon twists—fried tortilla wedges dusted with cinnamon.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
637
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Taco Bell is offering a new Chicken Enchilada Bowl as a limited-time offer. Available through June 29, it features all-whitemeat<br />
marinated chicken covered in enchilada sauce and topped with melted cheese, sour cream, seasoned rice and beans. It<br />
is priced at $2.99. (Restaurant Business <strong>Menu</strong> Strategies Newsletter)<br />
Taco Bell introduced a Chicken Caesar Grilled Stuft Burrito. Priced at $2.99 and available through August 11, the item<br />
includes grilled chicken, romaine lettuce, crunchy tortilla strips and Caesar dressing wrapped in a tortilla and grilled. (NRN<br />
Daily NewsFax, 7/1/03)<br />
Taco Bell launched a Chicken Caesar Grilled Stuft Burrito as a limited-time offer through August 11. Priced at $2.99, it features<br />
grilled, marinated all-white-meat-chicken, romaine lettuce, crunchy red strips and Caesar dressing all wrapped in a tortilla and<br />
grilled. (Business Wire, 6/30/03)<br />
Taco Bell introduced a $1.29 Spicy Chicken Burrito at participating locations. Part of the "Outside the Bun" strategy, the burrito<br />
is available through October 12. (NRN Daily NewsFax 9/9/03)<br />
Taco Bell featured a Spicy Chicken Burrito as a limited-time offer through October 12. The $1.29 item features shredded<br />
chicken in a spicy sauce, wrapped in a soft tortilla with rice and freshly made salsa. (Nation’s Restaurant News 9/15/03 p3)<br />
Taco Bell introduced Fiesta Salsa as a lower-fat alternative to cheese or sauce. It is made fresh daily with tomatoes, onions<br />
and cilantro. Guests now have the option of ordering any item on the menu “Fresco Style” with the new sauce. Fifteen<br />
offerings have less than 10 grams of fat if they are prepared in such a manner, according to the company. A regular steak soft<br />
taco, for example, has 290 calories and 17 grams, while the Fresco style version has 170 calories and five grams of fat.<br />
(Restaurant Business <strong>Menu</strong> Strategies Newsletter 9/10/03)<br />
International Activities |<br />
Taco Bell’s initial unit in China is expected to open during the first half of 2003 in Shanghai. Taco Bell parent Yum! Brands<br />
already has considerable experience in the region due to China’s fondness for KFC and the growing popularity of Pizza Hut.<br />
The 35% sales increase that Yum!’s Chinese arm experienced in 2002 reportedly is the fastest growth in the company’s<br />
international business. An official with the National Committee of the Chinese People’s Political Consultative Conference noted<br />
that the popularity of foreign fast food is being fueled by a combination of increased consumer awareness of overseas<br />
products and greater opportunities in the Chinese catering market. (QSR 3/03 p11)<br />
Taco Bell opened its first outlet in China in Shanghai. It features tableservice rather than the usual counter format. Parent<br />
Yum! Brands said it will monitor the unit’s performance to determine its expansion plans for the chain. Taco Bell’s sister chains<br />
KFC and Pizza Hut already have a total of about 8,100 outlets in China. (NRN 6/2/03 p56; FIR 5/26/03 p8)<br />
Priszm Brandz said that its 250 Pizza Hut outlets across Canada would buy only 100% Canadian beef to help support the<br />
country’s ailing beef industry. Its Pizza Hut restaurants buy approximately 3 million pounds of beef products annually. Priszm<br />
franchises more than 760 KFC, Taco Bell, Long John Silver’s and Pizza Hut outlets. In making the 100% Canadian beef<br />
pledge, at least temporarily, it is following the lead of the Canadian arms of McDonald’s and Dairy Queen. (NRN 8/25/03 p56)<br />
Personnel |<br />
Emil Brolick, President<br />
Rob Savage, Chief Operating Officer<br />
News & Other |<br />
Yum! Brands reported sales in 2002 at U.S. outlets rose 9% to $14.6 billion on a 1% blended same-store sales increase as<br />
annual domestic revenues increased 11% to $5.4 billion. International openings for 2002 hit a record 1,051 units and<br />
international operating profit for the year grew 17% to $121 million. Yum! will give Pizza Hut a 4% boost in its marketing<br />
budget for 2003 to $300 million and its KFC and Taco Bell brands will receive 3% increases in their annual marketing budgets,<br />
to $200 million each. (NRN 2/24/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
638
<strong>RISE</strong> COMPANY PROFILE<br />
Priszm Brandz will open a Long John Silver’s in an existing Taco Bell location in Peterborough, Ont. It is the first of eight cobranded<br />
stores that Priszm plans to open. The opening marks the seafood chain’s first Canadian store. Priszm Brands<br />
operates more than 760 franchised KFC, Taco Bell and Pizza Hut units, making it Canada’s largest restaurant operator. (NRN<br />
2/10/03 p35)<br />
Back Yard Burgers’ co-branding has worked better with Taco Bell than with Pizza Hut in the chain’s first five co-branded<br />
restaurants. Thus far, three Taco Bell pairings have been opened—two in Louisville and one in St. Louis—and two Pizza Hut<br />
units in the small Tennessee towns of Fayetteville and Portland. The Pizza Hut pairing has not worked well, the two brands<br />
have agreed, with differences in preparation and cooking times presenting major hurdles. The burger brand will be removed<br />
from the two Pizza Huts later this year. Although specific results are not being revealed, the Back Yard pairings with Taco Bell<br />
have been successful, with five more co-branded sites in the works, two to be in the St. Louis area and three in Ft. Wayne, IN.<br />
No other Yum! Brands concepts are being considered for co-branding with the burger concept for the short term. Back Yard’s<br />
agreement with Yum! grants the option to co-brand up to 500 more of the burger outlets. (RB 5/1/03 p46<br />
Burger King Corp. established an Operations Leadership Team to improve several areas of the business, including employee<br />
training, food taste, cooking processes, restaurant safety and cleanliness. The team is made up of Dave Gagnon, a Taco Bell<br />
veteran who was named the burger chain’s senior vice president for U.S. company restaurant operations; Rick Silva, former<br />
head of company restaurants and now senior vice president for eastern division franchise operations; Joe Soraci, who will<br />
serve as senior vice president for western division franchise operations; and Jim Hyatt, senior vice president of operations<br />
services and programs. The team reports to BK president Bob Nilsen, In separate news, Burger King hired Russ Klein as chief<br />
marketing officer, replacing Chris Clouser, who left the company in May. Klein previously served as chief marketing officer for<br />
7-Eleven. (NRN 6/2/03 p3)<br />
Taco Bell has been ordered to pay $30.1 million to two men who claim their idea for a talking Chihuahua character was<br />
misappropriated by the Yum! Brands-owned company. A U.S. district court jury in Grand Rapids, MI, ordered the chain to pay<br />
Joseph Shields and Thomas Rinks, who claim that Taco Bell used their talking-dog character after breaking off negotiations<br />
with them. The payment was based on a percentage of the estimated $500 million that was spent on the ad campaign, which<br />
was used from 1997 to 2000. Yum! said it plans to take a special charge of 6¢ per share, excluding interest, in the second<br />
quarter (ended June 16) to pay for the litigation. It plans to appeal the decision, stating its belief that the Chihuahua character<br />
was created by the Chiat Day advertising agency and not the plaintiffs. If its appeal is unsuccessful, the company would seek<br />
reimbursement from its insurance carriers and Taco Bell’s former advertising agency. (NDNF 6/5/03)<br />
Taco Bell is promoting its new Chicken Enchilada Border Bowl with the “Chicken Enchi-Lottery” contest, which will award<br />
either $15,000 in Powerball or state lottery tickets, possibly bringing their winner a multimillion-dollar payoff or a safer $5,000<br />
in cash or the same amount in Taco Bell Bucks redeemable for food. (NDNF 5/29/03)<br />
Taco Bell introduced a new, limited-time Chicken Caesar Grilled Stuft Burrito at its outlets nationwide. Priced at $2.99, the new<br />
burrito features grilled, all-white meat chicken, romaine lettuce, crunchy red tortilla strips and a Caesar dressing, wrapped in a<br />
tortilla and grilled. (NRN 7/7/03 p72)<br />
Yum! Brands Inc. reported domestic same-store sales for the four weeks ended September 6 at company-owned restaurants<br />
were flat compared to year-ago results. Same-store sales rose 2% at Taco Bell and 4% at Pizza Hut but fell 6% at KFC.<br />
Foreign systemwide sales increased 7% on a local-currency basis for the period. (NRN Daily NewsFax 09/12/03)<br />
Taco Bell introduced a lower-calorie, lower-fat “Fresco Style” option that offers 15 selections with 10 or fewer grams of fat.<br />
Introduced at all U.S. stores, the items substitute the chain’s traditional sauce and cheese toppings for a “Fiesta Salsa” made<br />
fresh daily from tomatoes, onions and cilantro. Nutritional brochures and posters are supporting the launch in stores. Among<br />
Fresco items are Grilled Chicken Soft Taco and Baja Beef Gordita. In other menu news, Taco Bell rolled out a Spicy Chicken<br />
Burrito that features chicken in a spicy sauce, rice and salsa wrapped in a soft tortilla priced at $1.29. It will be offered through<br />
October 12. (NDNF 9/10/03 & 9/9/03)<br />
Taco Bell parent Yum! Brands must pay an additional $11.8 million in interest to the creators of a talking-Chihuahua character<br />
that previously was used in the Mexican chain’s commercials, according to a federal judge’s new ruling. A jury awarded $30.1<br />
million to Joseph Shields and Thomas Rinks of Michigan for breach of contract in June. Together, the two judgments total<br />
almost $42 million. Yum! reportedly anticipated interest costs in its $35 million second-quarter charge although the company<br />
plans to appeal the court ruling. (NDNF 9/12/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
639
<strong>RISE</strong> COMPANY PROFILE<br />
Tennessee Tech University has turned over its foodservice operations to Chartwells College and University Dining Services. It<br />
had been the only public university in Tennessee still handling its own foodservice. Chartwells will make an investment of<br />
about $3.5 million in renovating Tennessee Tech’s foodservice facilities over a five-year period. The retail food court, which<br />
now includes a Sbarro, Taco Bell, salad bar and grill station, will be expanded with a Wendy’s outlet and a sub shop. Also<br />
planned are construction of a c-store and the complete renovation of a residential dining facility. (FSD 8/15/03 p1)<br />
Yum! Brands for the four weeks ended September 6, reported domestic same-store sales increased 2% at Taco Bell and 4%<br />
at Pizza Hut but decreased 6% at KFC. International system sales were 7% higher during the period. (Nation’s Restaurant<br />
News 9/22/03 p18)<br />
Taco Bell reported same-store sales increased 3% for the four-week period ended October 4. (NRN Daily NewsFax 10/8/03)<br />
Yum! Brands is accelerating its multi-brand strategy. The company is encouraging existing stores to add a second brand to<br />
their locations. The costs associated with such a move range from $150,000–$300,000, though the addition usually generates<br />
$200,000–$300,000 annually in sales. Yum!, which owns Taco Bell, KFC, Pizza Hut and A&W, also noted that multi-branded<br />
sites often have a more “contemporary” feel, with high ceilings, curved design elements and a variety of seating options from<br />
high tops to booths to tables. (NRN 10/20/03 p74)<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
The Chi-Chi’s Mexican Restaurant near Pittsburgh was linked by investigators to all 510 confirmed cases of hepatitis A in the<br />
state of Pennsylvania. Scallions imported from Mexico were officially named the likely cause of the massive hepatitis epidemic.<br />
Chi-Chi’s said that health officials had absolved its employees of responsibility for the liver disease, which claimed three lives<br />
as it spread through at least five states. In response to the outbreak, Taco Bell, Chili’s, Eat ‘n Park and Panda Express were<br />
among the chains that pulled green onions from their kitchens in November. (NRN 11/24/03 p1 & 12/1/03 p1)<br />
Sodexho has completed the first year of its eight-year contract with the U.S. Marine Corps. Worth $850 million, the venture<br />
covers both West Coast and East Coast contracts. In addition, Sodexho recently signed a separate contract to manage<br />
several retail foodservice outlets at the Marine Corps Air Station in Miramar, CA. They include Starbucks, Freshëns, Quiznos,<br />
Taco Bell, KFC, a restaurant at the base golf course and operations in the Enlisted Club and Officers Club. Sodexho uses<br />
Defense Department purchasing specifications and follows recipes from the Armed Forces Recipe System. At selected West<br />
Coast mess halls, Sodexho is running a test of a 21-day-cycle menu rather than the military’s standard 28-day cycle. The test<br />
also allows Sodexho to introduce a few menu items of its own. The Marines are anxious to improve mess hall participation.<br />
Single Marines living on base receive a meal card but on any given day, only about 55% take advantage of their free meals.<br />
The Marine Corps would like to find out why participation is so low and improve it. (NRN 11/24/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
640
Taco Bueno<br />
Headquarters<br />
3033 Kellway, Carrollton, Texas 75006-2580 USA<br />
Tel: (972) 417 4800 Fax: (972) 417 4811<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 108,000 100,811 97,325<br />
Company-owned ($000) 108,000 100,811 97,325<br />
Franchised ($000) - - -<br />
U.S. Number of Units 119 119 125<br />
Company-owned 119 119 125<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 915 830 778<br />
Concept Positioning |<br />
Taco Bueno, a limited-service Mexican chain, features a broad menu. Most menu items are prepared fresh daily on the<br />
premises. Takeout and drive-through service accounts for 56% of sales.<br />
Taco Bueno restaurants feature a Santa Fe/Pueblo design. Interiors have a Southwestern theme and include wooden tables<br />
and chairs, booth seating, stucco walls and a warm color scheme. Most units range in size from 2,400–3,200 sq.ft., and the<br />
current prototype measures approximately 2,400 sq.ft. Units seat around 80 customers and drive-through windows are<br />
included in 88% of all locations.<br />
Its roll-out of a new remodel program began in fiscal 2000. The new design features contemporary Mexican architecture,<br />
bright, eye-catching colors, serpentine stainless-steel counters and black slate tile. A new logo was added to rooftops.<br />
Currently, some 30 restaurants have been remodeled.<br />
New menu boards installed at all locations incorporate updated product photography, featuring combo meals have boosted<br />
check averages by 4.5%. All units will be remodeled using many elements of the new prototype.<br />
Under its new parentage, exploration of dual-branding with Carl’s Jr. is underway. Further, CKE is considering adding Carl’s<br />
Jr. units in markets with Taco Bueno stores. CKE also developed a remodeling program has been developed that includes<br />
upgrades for both interiors and exteriors.<br />
Taco Bueno dates back to a taco stand opened in 1967. In 1981, Casa Bonita, the chain's corporate name, was purchased by<br />
Unigate PLC, a British food processor, for $32.5 million and a reported $3.8 million in property. In late 1996, it was sold to CKE<br />
Restaurants, Inc. for some $42 million in cash. Included in the deal were two Casa Bonita themed restaurants and three<br />
Crystal's Pizzerias (now closed). In September 1997, the two Casa Bonita restaurants became part of CKE’s new public<br />
subsidiary, Star Buffet, Inc., which was subsequently sold in November 1998.<br />
In late 2000, CKE announced that it was selling the chain. The sale was completed in June 2001.<br />
Current management includes Frank Morales, executive vice president.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
641
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: Mexidips and Chips, Muchaco, Bueno Chilada Platter, Two-handed. Taco and BOB ("Big Ol' Burrito"). Also<br />
offers burritos, tacos, tostadas and salads. Taco, burrito and nacho platters accompanied by rice, beans and freshly-prepared<br />
guacamole and chips. Salsa bar offers sliced jalapenos, pico de gallo, diced onions and hot sauce; Guacamole made fresh<br />
four times a day Moving to larger and spicier offerings. All-you-can-drink beverage bar. <strong>Menu</strong> Prices: 59¢–$3.99.<br />
<strong>Menu</strong> Development |<br />
Taco Bueno added two new fajita offerings to its menu. Its Steak Fajita Platter includes sirloin strips, grilled peppers and<br />
onions, rice, beans, guacamole, sour cream, cheese, flour tortillas and chips for $4.99. Its Steak Fajita Tacos include sirloin<br />
strips, grilled peppers, onions and cheese on a flour tortilla and are priced at $1.69. Both fajita items can also be ordered with<br />
chicken. (Business Wire)<br />
Personnel |<br />
Stephen Clark, President<br />
David Lloyd, Chief Financial Officer<br />
Scott Spence, Vice President of Marketing<br />
Tom Veale, Director of Purchasing<br />
E.J. Nazarpour, Vice President of Operations<br />
News & Other |<br />
Taco Bueno plans to open eight units this year and 12 in 2004. The new units are expected to be similar to a store in<br />
Brownwood, TX, that opened in December, which features a slightly smaller building of 2,300 sq.ft. and 72 seats. Most spacesaving<br />
occurred in the kitchen. The 125-store chain was acquired in 2001 by Jacobson Partners of New York, owners of<br />
Bertucci’s Brick-Oven Pizzeria, which teamed up with other investors to buy the chain from CKE Restaurants. In other news,<br />
Taco Bueno’s new steak or chicken fajitas platter grew to 8% of the sales mix within weeks of its introduction. At $4.49, the<br />
dish is the menu’s most expensive item. Last year, 119-unit Taco Bueno raised prices 1.5% but comparable sales grew 11%<br />
through May. (NRN 8/4/03 p4; CL 7/03 p2; SF 7/03 p17)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
642
Taco John's<br />
Headquarters<br />
808 W. 20 St., Cheyenne, Wyoming 82001 USA<br />
Tel: (307) 635 0101 Fax: (307) 638 0603<br />
www.tacojohns.com<br />
Ownership: Private<br />
Segment: Limited Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 200,100 194,100 191,000<br />
Company-owned ($000) 4,500 4,800 5,000<br />
Franchised ($000) 195,600 189,300 186,000<br />
U.S. Number of Units 402 414 424<br />
Company-owned 7 9 10<br />
Franchised 395 405 414<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 525 501 499<br />
Concept Positioning |<br />
Taco John's restaurants are fast-food operations offering dine-in, carryout and, at most of it’s 400-plus locations, drive-through<br />
service. It positions itself as having better quality, larger portions and more authentic Mexican food than others in the segment.<br />
John Turner opened his first unit in Northern Colorado in 1968. The name was eventually changed to Taco John's. In 1987,<br />
Woodson-Holmes bought Taco John's recipes and trade names from Turner and changed its corporate name to Taco John's<br />
International, Inc.<br />
Current management includes Paul Fisherkeller, president and chief executive officer, Barry Sims, senior vice president and<br />
chief financial officer, Sue Beranek, vice president marketing, Jean Christman, vice president and general counsel, Brent<br />
Murray, vice president purchasing and distribution, Dave Schuh, vice president operations, and Forrest King, vice president<br />
human resources.<br />
<strong>Menu</strong> Positioning |<br />
Well-known signature items include: Super Potato Olés, Super Nachos and Super Burritos, Sierra Tacos, Taco Bravo (crispy<br />
beef taco wrapped inside a soft flour tortilla) and Potato Olés. Traditional items include tacos, burritos, Taco Salads, nachos<br />
and side dishes. The chain frequently runs limited time offers. Check Averages: $5.35.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
643
Personnel |<br />
Paul Fisherkeller, Chief Executive Officer<br />
Barry Sims, Chief Financial Officer<br />
David Schuh, Vice President of Operations<br />
Brent Murray, Vice President of Purchasing<br />
Brian Dixon, Vice President of Marketing<br />
<strong>RISE</strong> COMPANY PROFILE<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
644
Tastee Freez<br />
Headquarters<br />
48380 Van Dyke, Utica, Michigan 48317 USA<br />
Tel: (810) 739 5520 Fax: (810) 739 8351<br />
www.tastee-freez.com<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 110,000 117,000 100,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 110,000 117,000 100,000<br />
U.S. Number of Units 223 250 225<br />
Company-owned - - -<br />
Franchised 223 250 225<br />
International Sales ($000) 400 - -<br />
International Units 2 - -<br />
Average Sales/Unit ($000) 460 450 -<br />
Concept Positioning |<br />
One of America’s oldest franchise operations, Tastee Freez was created in 1950 when Leo Moranz and Harry Axene<br />
developed a new soft serve ice cream pump and freezer. They allowed the use of their Tastee Freez name to franchisees in<br />
exchange for rent payments on the ice cream pump, and little white stand began emerging, selling soft-service ice cream<br />
cones and sundaes. Befitting a 50-year-old company that has a name synonymous with soft-serve ice cream there also is a<br />
line of Tastee Freez clothing.<br />
Today there are Tastee Freez locations in 36 states, and while some still feature the basic small white ice cream stand, many<br />
have become more quick casual formats, featuring hamburgers, chicken sandwiches and a wide variety of ice cream treats.<br />
<strong>Menu</strong> Positioning |<br />
The menu includes hamburgers and cheeseburgers, fried chicken in 2-piece and 3-piece lunch packs and 9-piece, 15-piece<br />
and 21-piece pieces. Also on the menu are fish dinner and a full assortment of side dishes, including mashed potatoes,<br />
biscuits, fries, onion rings and cole slaw, as well as some regional offerings.<br />
Franchise Activity |<br />
Tastee-Freez sold franchise rights to its brand for Delaware, Maryland and the District of Columbia to Eastern Petroleum<br />
Corp., which currently operates two Tastee-Freez outlets. Eastern Petroleum, which markets petroleum products to 75 dealerand<br />
company-owned stations, has formed a wholly owned subsidiary called Mid Atlantic Tastee-Freez LLC. (NDNF 3/18/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
645
Personnel |<br />
David Chapoton, Chief Executive Officer<br />
Robert Lerash, Vice President of Operations<br />
Lorrie Kinney, Director of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Wienerschnitzel parent the Galardi Group acquired 229-unit Tastee-Freez’s parent for an undisclosed sum. It was acquired<br />
through a newly formed Tastee-Freez LLC subsidiary. Wienerschnitzel, which franchises 342-unit Wienerschnitzel and 24outlet<br />
Original Hamburger, has co-branded with Tastee-Freez since 1999 as a franchisee of the soft-serve ice cream chain. As<br />
of the date of the acquisition, the Tastee-Freez logo and menu were installed at 52 Wienerschnitzels and eight outlets of<br />
Hamburger Stand. Tastee-Freez, which had systemwide sales in 2002 of $115 million, will relocate its headquarters to<br />
Wienerschitzel’s home base of Newport Beach, CA. (NRN 6/16/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
646
TCBY Treats<br />
Headquarters<br />
2855 E. Cottonwood Pkwy., Salt Lake City, Utah 84121 USA<br />
Tel: (801) 736 5600 Fax: (801) 736 5970<br />
Ownership: Private<br />
Segment: Limited Service Ice/Yogurt<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 187,000 205,165 225,200<br />
Company-owned ($000) 2,000 165 200<br />
Franchised ($000) 185,000 205,000 225,000<br />
U.S. Number of Units 1,570 1,777 1,721<br />
Company-owned 16 1 1<br />
Franchised 1,554 1,776 1,720<br />
International Sales ($000) 24,500 28,000 45,000<br />
International Units 245 278 292<br />
Average Sales/Unit ($000) 125 130 199<br />
Concept Positioning |<br />
TCBY Enterprises Inc. owns, operates, and franchises a chain of soft-serve yogurt stores under the trade names TCBY Treats<br />
and TCBY Yogurt! The TCBY Treats concept incorporates not only its branded soft-serve yogurt but also its hand-dipped<br />
frozen yogurt and premium ice cream. New stores open under the Treats concept, in addition many are being converted to this<br />
name. The company also operates Juice Works and has merged that brand into TCBY stores.<br />
TCBY stores are open seven days a week, offering both carryout and sit-down service. Some newer outlets have drivethrough<br />
or double drive-through facilities. Its current marketing thrust is in the development of nontraditional locations. The<br />
bulk of these are in airports, travel plazas and other non-commercial locations. The company is also developing outlets in Cstores;<br />
many will be co-branded with other concepts including Subway, Wall St. Deli, Nathan’s Famous, Blimpie, Shell, Texaco<br />
and Exxon.<br />
Most units are located in freestanding buildings, shopping centers and enclosed malls. In 2000, TCBY's units underwent a<br />
redesign. Changes included updating colors for a brighter, bolder feel and a stronger connection to the brand. A typical unit<br />
occupies 500–900 sq. ft. and provides seating for 24-44 customers. Each store is also equipped with a freezer for the sale of<br />
pre-packaged items and novelty products. Kiosks average 250 sq. ft. with off-site storage and preparation space.<br />
The company's yogurt contains 80% less fat and 50% fewer calories than most premium ice cream formulations and has a<br />
sweeter taste and smoother composition than traditional forms of yogurt. TCBY's products are produced by Americana Foods,<br />
Inc. The yogurt is manufactured and packaged in two-gallon plastic bags and frozen. At the stores, the bags are thawed and<br />
poured directly into soft-serve dispensers. Americana also manufactures TCBY’s hard pack and novelty frozen dessert items.<br />
Belgium waffles and waffle cones are made on premise from proprietary dry mixes. Several products are also sold through<br />
supermarket chains and wholesale clubs. In addition, its Riberport Equipment and Distribution Co. offers complete equipment,<br />
furniture, signage and decor packages to franchisees of both traditional and nontraditional locations in the U.S. and<br />
overseas.The company’s acquisition of Juice Works includes co-branding with TCBY outlets. Growth will come from<br />
franchising, additional co-branding and development of nontraditional locations. In addition, Host Marriott has agreed to<br />
develop the concept in all of their TCBY locations in airports, travel plazas and mall food courts.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
647
<strong>RISE</strong> COMPANY PROFILE<br />
TCBY opened its first company-owned store in September 1981. The TCBY name was adopted in 1985. In January 1990, a<br />
joint venture agreement was completed for the development of at least 200 stores over the next 12 years in Japan. In 1991,<br />
the company undertook an agreement with Mrs. Fields' Development Corp. to add the Mrs. Fields line of baked goods in<br />
TCBY stores. In early 1997, it acquired two-unit Juice Works.<br />
In June 2000, Capricorn Investors III, L.P. completed its acquisition TCBY for some $140 million. Capricorn Investors III, L.P.<br />
is an affiliate of the investment firm that owns Mrs. Fields' Holdings, which also franchises TCBY.<br />
<strong>Menu</strong> Positioning |<br />
Soft-serve frozen yogurt in 50 flavors. Sold in waffle cones, prepackaged containers, sundaes, shakes, fruit smoothies,<br />
banana splits, cookies, crepes, waffles and pies. Novelties include Yog-A-Bars, Sweet Greetings—edible greeting cards,<br />
Cappuccino Chiller and Kiddiewich (miniature yogurt-filled cookie sandwich). Also menus premium ice cream, shave ice,<br />
frozen custard, hand-dipped sorbets, no sugared ice creams, non-fat frozen yogurt and baked goods. Also has TCBY Kid's<br />
menu. Juice Works: fresh fruits and vegetable juices and frozen yogurt fruit smoothies that can be enhanced with dietary<br />
supplements as well as low-fat/nonfat baked goods.<br />
Personnel |<br />
Larry Hodges, President<br />
Sandra Buffa, Chief Financial Officer<br />
News & Other |<br />
Maid-Rite Corp. is offering all of its franchisees a co-branding option with TCBY. The Des Moines, IA-based company notes<br />
that the two concepts complement each other, with 74-unit Maid-Rite’s heaviest customer traffic coming during lunch and<br />
dinner hours and TCBY doing most of its business from mid-afternoon to late evening. Setting up a 100-sq.ft. TCBY in a Maid-<br />
Rite unit costs a $10,000 franchisee fee plus $28,000 for equipment, with site, labor, walk-in coolers and POS equipment<br />
already in place. The company expected that four co-branded units would be in operation by December—two in Iowa and one<br />
each in Kansas and Nebraska. Maid-Rite was acquired by 14 Iowa investors about two years ago. (CL 11/03 p63)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
648
Texas Roadhouse<br />
Headquarters<br />
6040 Dutchmans Lane Suite 400, Louisville, Kentucky 40205 USA<br />
Tel: (502) 426 9984 Fax: (502) 426 9924<br />
www.texasroadhouse.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 410,000 355,000 315,000<br />
Company-owned ($000) 200,000 170,000 155,000<br />
Franchised ($000) 210,000 185,000 160,000<br />
U.S. Number of Units 140 120 92<br />
Company-owned 79 64 44<br />
Franchised 61 56 48<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,200 3,125 3,400<br />
Concept Positioning |<br />
Texas Roadhouse is a family steakhouse specializing in hand-cut steaks and ribs. Locations are clustered in the Mideast and<br />
South, with a strong and emerging presence in the Southwest and Plains states. Expansion plans called for the continuing<br />
rollout of the format.<br />
The company mascot, Andy Armadillo, is featured on a line of clothing and other items offered for sale, and management<br />
sponsors a cycling team, short-track car racing and a racing team with the Texas Roadhouse name on the car.<br />
The first Texas Roadhouse was built in a place about as far from Texas in geography as might be possible – Clarkson,<br />
Indiana. The steakhouse chain, now boasting 135 locations in 28 states, including Texas.<br />
<strong>Menu</strong> Positioning |<br />
The menu features a variety of steaks in size and thickness, ranging up to a 20-ounce cut of steak of $18.99. Burgers,<br />
chicken, barbecue and country-style dinners are also featured, as is a children’s’ menu and free refills on soft drinks. Hot,<br />
fresh-baked bread is also served at the table.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
649
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Burgers are showcasing inventive ingredients as operators work to develop enticing options that appeal to consumers looking<br />
to indulge even as obesity becomes an increasingly important issue. While salads and other better-for-you fare seem to be<br />
gaining menu mentions lately, hamburgers remain the most-ordered option at restaurants. Interesting toppings, spices and<br />
sauces are being utilized to add flavor and interest. At Red Robin, a 5 Alarm Burger is smothered in Pepper Jack cheese,<br />
jalapenos, salsa, tomatoes, lettuce and chipotle mayonnaise. Equally indulgent variations include: ■ Ranch Burger—halfpound<br />
burger with spicy ranch dressing, Cheddar cheese, bacon and grilled red onions, Ground Round ■ Hickory Burger—<br />
half-pound Choice sirloin patty topped with Cheddar cheese, hickory-smoked bacon and stout barbecue sauce, Rock Bottom<br />
Restaurant & Brewery ■ California Burger—half-pound Choice beef patty topped with Jack cheese, bacon and avocado, Stuart<br />
Anderson’s Black Angus/Cattle Company ■ Smoke House Burger—half-pound Choice beef patty with Jack and Cheddar<br />
cheeses, sautéed mushrooms, onions and barbecue sauce, Texas Roadhouse. (Restaurants & Institutions 9/1/03 p31)<br />
Technology |<br />
Fishbowl, an e-mail marketing services firm, assists its clients in sending more than 2 million e-mail messages a month on<br />
behalf of about 60 restaurant chains, including Buca di Beppo, Johnny Carino’s Country Italian, Maggiano’s Little Italy and<br />
Texas Roadhouse. The company also specializes in database management; creation of e-mail content; survey planning<br />
strategies; and updates of e-mail materials to support quarterly marketing goals. Fishbowl clients pay a $7,500 set-up fee and<br />
from $100–$300 per restaurant per month, depending on the database size. Fishbowl client Red Robin Gourmet Burgers is<br />
rolling out a marketing program using e-mail to build brand awareness and guest loyalty. The 198-unit chain decided on this<br />
strategy after successfully testing a guest loyalty program created by Fishbowl. In the eight-restaurant pilot, the company said<br />
it received measurable results that e-mail marketing works. (NRN 5/19/03 p174)<br />
Personnel |<br />
W. Kent Taylor, Chief Executive Officer<br />
G. Hart, President<br />
Scott Colosi, Chief Financial Officer<br />
Steve Ortiz, Vice President of Operations<br />
Debbie Hayden, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
650
Texas Steakhouse & Saloon<br />
Headquarters<br />
1021 Noell Lane, Rocky Mount, North Carolina 27804 USA<br />
Tel: (252) 937 2800 Fax: (252) 237 4527<br />
www.bneinc.com<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 61,204 58,184 27,094<br />
Company-owned ($000) 61,204 58,184 27,094<br />
Franchised ($000) - - -<br />
U.S. Number of Units 28 26 13<br />
Company-owned 28 26 13<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 2,267 2,237 2,084<br />
Concept Positioning |<br />
Texas-style in form and menu, Texas Steakhouse operates nowhere near Texas. Owned by the Boddie-Noell restaurant chain<br />
that operates 334 Hardee’s franchises in North Carolina, Virginia, Kentucky and South Carolina, Texas Steakhouse was<br />
created in 1994, offering steaks, in a roadhouse atmosphere. Boddie-Noell has expanded the concept to 26 sites in North<br />
Carolina, Virginia and West Virginia.<br />
<strong>Menu</strong> Positioning |<br />
Texas Steakhouse and Saloon features steak dinner entrees ranging from $11.95 to $20.95, along with pasta, chicken and<br />
pork meals and a full array of salads. Lunch includes traditional burgers and hot sandwiches, along with some Southwest<br />
favorites such as riblets and red beans and rice.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
651
Tia's Tex-Mex<br />
Headquarters<br />
150 W. Church St., Maryville, Tennessee 37801 USA<br />
Tel: (865) 379 5700 Fax: (865) 379 6829<br />
Ownership: Private<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 46,300 49,000 48,000<br />
Company-owned ($000) 46,300 49,000 48,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 29 29 28<br />
Company-owned 29 29 28<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,700 1,775 1,714<br />
Concept Positioning |<br />
Tia's Tex and Mex restaurants are reminiscent of old-time Mexican hotels with chandeliers, textures and artifacts reflecting that<br />
heritage. A tortilla-making display further enhances its ambiance, and tortilla chips are cooked fresh each day and served with<br />
just-made salsa to every guest. <strong>Menu</strong> items are prepared to order. Units average 5,600–6,200 sq. ft. and seat 180–215,<br />
although a prototype for new units is about 5,000 sq. ft., with seating for some 200 persons.<br />
Ruby Tuesday, Inc. acquired the Tia's brand in fiscal 1995. In early 2000, it announced plans to divest the chain, along with its<br />
American Cafe holdings. In November 2000, its current parent completed its acquisition of American Cafe and Tia’s Tex and<br />
Mex for some $54.5 million plus the cost of developing the three new units (currently estimated to be $4.5 million), of which<br />
former parent Ruby Tuesday, Inc. will finance up to $20 million. Ruby Tuesday, Inc. also has rights to acquire 33% of Specialty<br />
Restaurant Group, LLC through the 5th anniversary of the divestiture.<br />
<strong>Menu</strong> Positioning |<br />
Array of traditional Mexican favorites including fajitas, tacos, burritos, enchiladas, nachos and quesadillas as well as<br />
Southwestern grilled and sautéed entrees. Chips, cooked fresh throughout the day, served with just-made salsa and<br />
handmade flour tortillas. <strong>Menu</strong> Prices: $5.99–$25.99. Check Averages: under $10.<br />
Personnel |<br />
Tia’s Tex-Mexv named Scott E. Gordon president. Previously, Gordon was an executive at Don Pablo’s and La Madeleine.<br />
(NRN Daily NewsFax 12/17/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
652
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Population shifts affect the restaurant industry. Emerging chains often look to population trends and try to respond<br />
appropriately; so many must have found recent U.S. Census Bureau data intriguing. The bureau revealed that Hispanics have<br />
become the country’s largest minority group with about 37 million people, with blacks numbering approximately 36 million.<br />
Studies also show that Hispanics are the third largest-spending ethnic group after whites and blacks. The greater the Hispanic<br />
community in the U.S., the more influence it likely has on all Americans and the food industry. Their culture, particularly the<br />
cuisine, spreads as Hispanic chefs prepare Latin-inspired foods and entrepreneurs open more such restaurants. The<br />
increased supply of Mexican and Latin fare seems welcome considering Americans have more adventuresome tastes than<br />
ever and increasingly indulge in ethnic fare. Naturally, this increased acceptance propels demand so more concepts emerge to<br />
feed it. In fact, <strong>Technomic</strong> believes the Mexican quick-casual segment in particular will double over the next five years. New<br />
competitors are sprouting up within the U.S. while several promising chains are being imported from Latin America and<br />
Mexico. These chains seem to cater well to those seeking authentic “south of the border” foods. The Wall Street Journal<br />
recently reported on such imported concepts that are worth watching, including: · Churromania—limited-service churro chain,<br />
imported in 2001 · Pollo Campero—limited-service chicken chain, imported in 2002 · El Fogoncita—quick-casual pork taco<br />
chain, imported in 2003 · Gorditas Dona Tota—limited-service cheese pastry chain, imported 2003 · El Tizoncito—quickcasual<br />
pork taco chain, imported 2003 Major restaurant companies have already invested in the segment. Jack in the Box<br />
bought Qdoba Mexican Grill this past February; Wendy’s International is invested in Baja Fresh Mexican Grill; and McDonald’s<br />
owns Chipotle Mexican Grill. The list of emerging chains with Mexican and Latin influences, including Southwestern fare, that<br />
we’re tracking includes Salsarita’s Fresh Burrito (6 units, profiled in this issue); Z’Tejas (12 units); La Salsa (96 units);<br />
Pancheros Mexican Grill (9 units); Chico’s Tacos (23 units); Burrito Beach (5 units); Burritoville (12 units); Taqueria Cantina<br />
and Burrito Joint (10 units); Left at Albuquerque (8 units); Atomic Burrito (3 units); Blue Mesa Grill (4 units); and Tia’s Tex Mex<br />
(29 units). While the number of Hispanics escalates, the amount of Americans in general who enjoy Mexican and Latin fare<br />
seems to grow as well, painting a bright future for Mexican and Latin-inspired concepts.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
653
Tim Hortons<br />
Headquarters<br />
874 Sinclair Rd., Oakville, Canada L6K 2Y1, CANADA Canada<br />
Tel: (905) 845 6511 Fax: (905) 845 0265<br />
Ownership: Private<br />
Segment: Limited Service Donut<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 115,000 95,800 80,100<br />
Company-owned ($000) 30,000 34,300 40,200<br />
Franchised ($000) 85,000 61,500 39,900<br />
U.S. Number of Units 160 140 120<br />
Company-owned 40 57 59<br />
Franchised 120 83 61<br />
International Sales ($000) 1,564,000 1,365,000 1,207,000<br />
International Units 2,188 2,023 1,860<br />
Average Sales/Unit ($000) 875 817 681<br />
Concept Positioning |<br />
Tim Hortons is open seven days a week, 24 hours a day. Units range from 35-ft. kiosk and cart installations to 3,030 sq. ft. fullsized<br />
restaurants with baking capacities for several satellite units. Its satellite prototypes average 550–2,250 sq. ft.; the<br />
majority, however, are standard and typically average 2,800 sq. ft.<br />
In addition, the company is developing co-branded units with Wendy’s. These combo units average 5,200 sq. ft. and house<br />
both brands under the same roof, thus taking advantage of each brand’s peak sales period. The unit has a full kitchen, serving<br />
counter and drive-through window for each concept but share a 104-seat dining room.<br />
The first Tim Hortons opened in 1964 in Hamilton, ON. In December 1995, the company merged with Wendy’s International,<br />
Inc. In April 1997, it announced a roll-out of the concept into the U.S.<br />
<strong>Menu</strong> Positioning |<br />
The chain specializes in coffee, doughnuts and baked goods All baked goods are made on-premise, twice each day.<br />
Personnel |<br />
Paul House, President<br />
William Moir, Senior Vice President of Marketing<br />
Roland Walton, Senior Vice President of Operations<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
654
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
We have now finished compiling the data on the Top 200 Chain Companies based on U.S. systemwide sales. In total, they<br />
operate in excess of 300 individual chains/brands. As we’ve done in the past, we thought it would be quite useful to study the<br />
fastest-growing players to see what trends come to light. To do so, this year we have identified all chains that grew in excess<br />
of 20% and reviewed them in three size ranges based on their 2001 systemwide sales, as shown below. Growth rates for 2002<br />
versus 2001 are given in parentheses after each. $50–$99 MM $100–$300 MM $300+ MM Smokey Bones* (99%) Atlanta<br />
Bread* (59%) Quizno’s* (69%) Johnny Carino’s *(53) Chipotle* (55) Panera (43) Noble Roman’s* (30) Baja Fresh (41) Krispy<br />
Kreme (39) Pick Up Stix* (29) Famous Dave’s (32) P.F. Chang’s (28) McAlister’s Deli (25) Maggiano’s (31) Starbucks*(23)<br />
Roy’s* (21) Culver’s (30) Cheesecake Factory (21) Cosi (21) Buffalo Wild Wings (28) Saltgrass Steakhouse (20)Carrabba’s<br />
(24) Tim Horton’s (20) House of Blues* (21) Buca (20) * <strong>Technomic</strong> Estimate In total, this list includes 25 chains. Looking at<br />
the “concept clusters” they represent, it is interesting to see the trends/menu preferences their strong growth rates indicate.<br />
The bulk of these fast-growing chains (16) operate in just six clusters, giving us insight into key sub-segments that are<br />
appealing to consumers. Cluster # of Chains Fastest Grower >$100 MM in 2001 Italian 4 Maggiano’s (31%) Treats 3 Krispy<br />
Kreme (39) Asian 3 P.F. Chang’s (28) Quick Casual Mexican 2 Chipotle (55) Quick Casual Bakery 2 Panera (43) Quick<br />
Casual Deli Sandwich 2 McAlister’s Deli (25)*Only $80 million in 2001 Also interesting to me is that Italian tops the list, along<br />
with our treat category, which includes doughnuts, ice cream and the like. Obviously this breakdown also confirms the<br />
consumer’s increased interest and strong shift to the newer quick casual concepts, away from the traditional QSR players.<br />
Note there is only one pizza player, and not one hamburger or chicken chain. Further, not one midscale concept is included.<br />
Thus, AS I SEE IT, our continued monitoring of chain restaurant performance is warranted as it is a true reflection of both<br />
attitudes and real behavior. While the winners at first glance appear varied, upon closer inspection we can see how revealing<br />
they are in confirming today’s “hottest” areas.<br />
Wendy’s reported same-store sales for September grew 3.5% at both company-owned restaurants and franchised units. Tim<br />
Hortons announced same-store sales increased 6.5% in Canada and 6.9% domestically. (NRN Daily NewsFax 10/3/03)<br />
Wendy’s International expects to open between 560 and 605 stores during 2003. During the first six months of this fiscal year,<br />
it opened 177 new units of Wendy’s, Tim Hortons and Baja Fresh. At the end of June, it had a total of 8,934 domestic and<br />
international stores. (FER 9/03 p14)<br />
Tim Hortons for the five weeks ended November 2, reported same-store sales increased to 3.9% from 3.7%. The chain also<br />
reported same-store sales in Canada increased to 5.2% from 5.0%. (NRN Daily NewsFax 11/6/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
655
Timber Lodge Steakhouse<br />
Headquarters<br />
1801 E. 79th Suite 27, Bloomington, Minnesota 55425 USA<br />
Tel: (952) 929 9353 Fax: (952) 929 5658<br />
Ownership: Private<br />
Segment: Full Service Other Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 48,826 49,489 45,000<br />
Company-owned ($000) 45,649 46,732 44,000<br />
Franchised ($000) 3,177 2,757 1,000<br />
U.S. Number of Units 29 27 26<br />
Company-owned 27 26 25<br />
Franchised 2 1 1<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,851 1,896 1,759<br />
Concept Positioning |<br />
Timber Lodge Steakhouse is a regional chain of moderately priced full-service restaurants that serve dinner only. Units have<br />
log-framed interiors and memorabilia such as murals that depict folklore such as Paul Bunyan that captures the history of its<br />
North Woods operational base. Interiors feature fireplaces, hardwood floors, wood tables, chairs and booths. Units are either<br />
freestanding or located in strip centers and range between 6,300–9,000 sq. ft. with seating for around 230 persons, including<br />
20 in a bar area.<br />
The first Timber Lodge restaurant opened in 1991. In 1994, the company (then known as Q-Steaks, Inc.) went public. In<br />
December 1997, Santa Barbara Restaurant Group Inc. announced its intent to acquire the chain in a deal calling for Santa<br />
Barbara to acquire all of Timber Lodge's outstanding capital stock. The deal closed in late 1998. Also in 1998, Timber Lodge<br />
acquired 16 JB’s Restaurants from CKE Restaurants Inc. Timber Lodge is currently owned by CKE Restaurants after CKE<br />
acquired Santa Barbara Restaurant Group in early 2002.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Ages steaks ranging in size from 9-oz. filet to 20-oz. porterhouse and Prime rib served in 4 different sizes.<br />
Also offers barbecue ribs, pork chops, pasta and daily specials. Dinners include soup or salad, bread and choice of potato or<br />
fresh vegetables. Chicken, seafood and "Field and Steam Combos" also offered. Full liquor service; some 15% of revenues.<br />
<strong>Menu</strong> Prices: $7.95–$18.95. Check Averages: $17–$18.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
656
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
CKE Restaurants expects to sell its 26-unit Timber Lodge Steakhouse for $10 million to an unidentified buyer, according to its<br />
quarterly SEC report. The deal was expected to close in August. Timber Lodge is CKE’s only full-service concept. CKE<br />
acquired Timber Lodge as part of its purchase of the La Salsa Fresh Mexican Grill and Green Burrito chains. Sixteen of<br />
Timber Lodge’s restaurants are in Minnesota. (NRN 7/14/03 p3; FIR 7/7/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
657
Togo's Eatery<br />
Headquarters<br />
14 Pacella Park Drive P.O. Box 317, Randolph, Massachusetts 02368 USA<br />
Tel: (781) 961 4020 Fax: (781) 963 2913<br />
www.togosspeedlunch.com<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 192,000 190,638 189,778<br />
Company-owned ($000) - 1,164 18,364<br />
Franchised ($000) 192,000 189,474 171,414<br />
U.S. Number of Units 426 387 334<br />
Company-owned - 3 13<br />
Franchised 426 384 321<br />
International Sales ($000) - 432 128<br />
International Units - 1 1<br />
Average Sales/Unit ($000) 475 493 1,412<br />
Concept Positioning |<br />
Togo’s is a franchised chain of sandwich shops specializing in freshly crafted sandwiches. Patrons order from a numbered<br />
menu and are offered two price levels: regular and large. Units include standalone Togo’s, combo units with Togo’s/Baskin-<br />
Robbins and trombo units with Togo’s/Baskin-Robbins/Dunkin’ Donuts. These range in size from 750–4,200 sq. ft. and seat<br />
anywhere from 20–75 patrons. The typical standalone unit averages 1400 sq. ft. and accommodates approximately 26<br />
patrons.<br />
Michael T. Cobler founded Togo's in 1971 while still a student at San Jose State University. Franchising began in 1977. In mid-<br />
1997, the chain was acquired by Allied Domecq PLC, which is also the parent of Baskin-Robbins USA, Co. and Dunkin’<br />
Donuts Incorporated.<br />
<strong>Menu</strong> Positioning |<br />
Togo’s signature sandwiches include Hot Pastrami and Turkey & Avocado. Togo’s also offers soups, salads and vegetarian<br />
sandwiches. Catering is available. Soft drinks are available. <strong>Menu</strong> prices range from: $1.29–$5.99. Check Average: $7.<br />
Expansion Plans |<br />
Dunkin’ Donuts expects to open about 450 new stores this year, a 75-unit increase over last year’s 375 domestic outlets. Last<br />
year, 100 of those openings were part of combo or trombo locations that combined the doughnut concept with Baskin Robbins<br />
and Togo’s Great Sandwiches. All three brands are owned by Allied Domecq Quick Service Restaurants. (FER 4/03 p9)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
658
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Togo’s rolled out its first line of toasted sandwiches in the Chicago and New York markets. The six new offerings continue the<br />
chain’s focus on bold flavors by utilizing ingredients launched last summer, such as Honey Dijon, Herb Mayo and Italian<br />
Vinaigrette condiments as well as Black Forest Ham and Capicolla sandwich meats. In addition, Togo’s will also now toast any<br />
of its current sandwiches upon request. Priced from $3.49–$4.49, the new sandwiches include: ■ Pastrami Supreme—<br />
pastrami, melted provolone cheese, mustard, lettuce, tomato and onion ■ Turkey Bacon Club—turkey, light mayonnaise,<br />
lettuce, tomato, bacon and onion ■ Chicken Bruschetta—marinated tomatoes, basil pesto spread, melted provolone cheese,<br />
roasted chicken, lettuce and onions ■ The Italian—salami, ham, turkey cotto salami, provolone cheese, Italian vinaigrette,<br />
lettuce, tomato and onion ■ Three Cheese and Turkey Club—with Swiss, provolone, American cheese and honey Dijon<br />
spread ■ Black Forest Ham and Cheese. (Restaurant Business Daily News)<br />
Togo’s is upgrading breads, meats and cheese at its California units. New breads include wheat, rustic white, Parmesan white<br />
and onion-herb. The company said it has no official plans to extend the upgrades outside California. (NRN Daily NewsFax)<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Togo’s units in California have restored several popular items from past decades to its permanent menu. Returning sandwich<br />
favorites from the 1970s are: Turkey, Salami & Cheese; Capicola, Salami & Cheese; Avocado & Cheese; and Ham, Turkey,<br />
Salami & Cheese. It also brought back a Roast Beef & Avocado sandwich from the 1980s and Turkey and Cranberry from the<br />
1990s. Prices range from $3.39–$4.49 for a regular sandwich. A company spokesman noted that customers continued to ask<br />
for the sandwiches years after their initial popularity. There are no plans to restore these items to stores outside California,<br />
where Togo’s was founded, at this time. (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 6/10/03)<br />
Togo’s rolled out a Napa Salad as limited-time offer. The $4.29 item features spinach, tomatoes, cucumbers, red onions,<br />
pepperoncini, seedless grapes, feta cheese and fat-free Serrano-grape dressing. (NRN Daily NewsFax, 8/12/03)<br />
Technology |<br />
Allied Domecq has signed an agreement with SkillSoft PLC calling for development, deployment, hosting and administration<br />
services in support of the chain's global e-learning solution. The first phase of the solution will be the training initiative targeted<br />
to franchise management and employees, addressing topic such as store management and customer service. The learning<br />
curricula, expected to be available to all three Allied Domecq chains (Dunkin' Donuts, Baskin Robbins and Togo's) by July, will<br />
be accessible through on-site computers owned by franchisees and outfitted with high-speed Internet connections. (Company<br />
Release)<br />
Allied Domecq agreed to use Vocus Inc.'s online software to direct and manage corporate communications initiatives. Based in<br />
Lanham, MD, Vocus's software is designed to increase efficiency of media campaign management and city expenses tied to<br />
media directories, printed materials and internal "clip books." Allied Domecq is the parent company of Baskin-Robbins',<br />
Dunkin' Donuts and Togo's Eatery. (Nation's Restaurant News 7/14/03 p44)<br />
Personnel |<br />
Jon Luther, Chief Executive Officer<br />
Allison Wallach, Director of Marketing<br />
Jeff Van Hanswyk, Product Development<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
659
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Togo’s is upgrading the breads, meats and cheeses at its 300 California units. The 400-unit sandwich chain is franchised by<br />
Allied Domecq Quick Service Restaurants. Togo’s also added wheat, rustic white, Parmesan white and onion-herb breads to<br />
its menu. The chain said it has no firm plans for upgrades outside of California. (NDNF 5/8/03)<br />
Togo’s has begun toasting sandwiches at branches in several markets following “highly positive” tests conducted in Chicago<br />
and New York. The Allied Domecq Quick Service Restaurants subsidiary has begun toasting sandwiches in stores in<br />
Massachusetts, Florida, Pennsylvania, Georgia and Michigan and in Milwaukee and Washington, DC. The Togo’s chain has<br />
more than 400 shops. (NDNF 9/4/03)<br />
Dunkin’ Donuts, Baskin-Robbins and Togo’s will be featured in the new All Day umbrella brand to be rolled out in a 2,300-sq.ft.<br />
prototype that was slated to open in late September in Burbank, IL. Allied Domecq Quick Service Restaurants (ADQSR) will<br />
decide on a schedule for future units and markets during the fourth quarter of fiscal 2003. A retrofit package for existing stores<br />
will be offered sometime next year. Exterior awnings tout each brand and the building and signage display a circular amalgam<br />
of each logo in the design of a clock, which reads “All Day” below. Inside, the clock motif is prominently featured in a wallpaper<br />
“mural” and on tabletops as well. Floor tiles are light-hearted, with some depicting ice-cream sprinkles and others coffee<br />
beans. The new unit makes use of synergies in several areas. The same oven will be used to bake Dunkin’ Donuts’ muffins<br />
and scones as well as Togo’s bread products and the same toasters and workstations will be used to prepare both breakfast<br />
and lunch sandwiches. The cashier stations will use one POS system. ADQSR is targeting combined sales for the new unit of<br />
between $1 million and $1.2 million. (R&I 9/15/03 p73)<br />
Togo’s for fiscal 2003, reported systemwide sales decreased 5%. (NRN Daily NewsFax 10/28/03)<br />
Togo’s Eatery for the fiscal year 2003, reported systemwide sales decreased 5.0%. (Nation’s Restaurant News 11/10/03 p44)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
660
Tony Roma's<br />
Headquarters<br />
9304 Forest Lane Suite 200, Dallas, Texas 75243 USA<br />
Tel: (214) 343 7800 Fax: (214) 343 2680<br />
www.tonyromas.com<br />
Ownership: Public<br />
Segment: Full Service Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 314,000 318,224 315,541<br />
Company-owned ($000) 118,000 120,488 122,470<br />
Franchised ($000) 196,000 197,736 193,071<br />
U.S. Number of Units 159 162 161<br />
Company-owned 56 60 62<br />
Franchised 103 102 99<br />
International Sales ($000) 119,000 116,445 111,715<br />
International Units 93 90 74<br />
Average Sales/Unit ($000) 1,930 1,964 1,975<br />
Concept Positioning |<br />
Tony Roma's is a chain of full-service, family style dinner houses specializing in baby back ribs. Restaurants are open for<br />
lunch, dinner, and late night snacks seven days a week. Takeout service and catering is available, and some units offer home<br />
and office delivery service.<br />
Some dinner houses are conversions of existing buildings, while others are freestanding and built to the company's<br />
specifications. One single prototype is not used and sizes vary from 3,000–13,000 sq. ft, depending on market potential.<br />
Seating capacity varies from 120–300; the average is 200. A separate bar area is also featured at many units for additional<br />
seating potential.<br />
Tony Roma, a former Playboy Club manager, opened his first rib restaurant in Miami in 1972. Three years later, the company<br />
was purchased by Dallas Cowboys owner Clint Murchison and attorney Jack Peeples. In early 1993, NPC International, Inc.,<br />
the largest franchisee of Pizza Hut, acquired the chain for $20 million and then spun it off in mid-1998 to Sentinel Capital<br />
Partners.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: Rib offerings including 1/2-slab $10.99 dinner; selection of sauces includes “Blue Ridge Smokies” or “Carolina<br />
Honeys”. Also burgers, salads, steaks, chicken, seafood, sandwiches, appetizers and desserts, including Skillet Brownie.<br />
Beer, wine and mixed drinks available; some 11% of sales. <strong>Menu</strong> Prices: $4.99–$19.99. Check Averages: $12.54.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
661
Personnel |<br />
David Lobel, Chairman<br />
David Head, Chief Executive Officer<br />
Richard Peabody, Chief Financial Officer<br />
Doug Snyder, Senior Vice President of Operations<br />
Marc Buehler, Vice President of Marketing<br />
Morgan Hull, Product Development<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
7-Eleven has struck a partnership with Tony Roma’s. In Austin, TX, 31 7-Eleven’s are offering five products that use Roma’s<br />
branded barbecue sauces. With prices ranging from $2.99–$4.99, the items include Rib Juniors (smoked beef ribs); Roma’s<br />
Ribblers (boneless pork rib meat); a barbecued rib sandwich; a bacon cheeseburger with Roma’s spicy sauce; and chicken<br />
strips in Roma’s Original barbecue sauce. The items can be purchased hot and ready to eat or chilled for heating later. In<br />
related news, 7-Eleven is considering the feasibility of including drive-thru windows for food sales in new stores where site<br />
configuration would permit. (R&I 6/15/03 p17)<br />
Atlanta Bread Company signed a development deal for 30 outlets to be opened in New York over the next five years. The<br />
agreement is with Barry Gersten, owner of the original Tony Roma’s Restaurant in New York. He will open units in the<br />
counties of Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk and Westchester. (NDNF 8/7/03)<br />
Tony Roma, founder of the casual restaurant chain named after him, died at age 78. He founded the concept in the early<br />
1970s. It now has more than 200 units on five continents. (FA 9/03 p18)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
662
Tumbleweed Grill & Bar<br />
Headquarters<br />
2301 River Rd. Suite 200, Louisville, Kentucky 40206 USA<br />
Tel: (502) 893 0323 Fax: (502) 893 6676<br />
www.tumbleweedrestaurants.com<br />
Ownership: Public<br />
Segment: Full Service Mexican<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 85,100 85,025 78,821<br />
Company-owned ($000) 54,100 56,025 51,821<br />
Franchised ($000) 31,000 29,000 27,000<br />
U.S. Number of Units 50 57 55<br />
Company-owned 31 36 36<br />
Franchised 19 21 19<br />
International Sales ($000) 8,000 10,500 9,900<br />
International Units 6 8 8<br />
Average Sales/Unit ($000) 1,615 1,590 1,439<br />
Concept Positioning |<br />
Tumbleweed’s appeal lies in its combination of spicy fare and mesquite-grilled meats. The casual-dining chain also places a<br />
strong emphasis on value. Its restaurants, open for lunch and dinner seven days a week, are designed with an American<br />
Southwest theme in mind and feature Native American and cowboy memorabilia, as well as wildlife replicas. Rough-hewn<br />
timber and a stone fireplace add to the relaxed, Southwest atmosphere.<br />
Restaurants are largely freestanding and are found in mid-sized metropolitan areas. The company develops three different<br />
prototypes, depending on the market size. Target markets for these prototypes are primarily mid-sized metropolitan markets in<br />
the Midwest, Mid-Atlantic and Southeast. Its mini prototype seats 128–194, its midi prototype seats 210–244, and its maxi<br />
prototype seats 252–384. Each unit features a full-service bar and carries the "Old West" logo and décor.<br />
A centralized commissary system prepares cooked ingredients such as ground beef, chili and Mexican Beans for both its<br />
company-owned and franchised units.<br />
The first Tumbleweed restaurant opened in 1975. In January 1995, Tumbleweed, LLC, which was owned by an investor group<br />
headed by current management, acquired the rights to the chain. Its current structure was incorporated in December 1997 as<br />
Tumbleweed, Inc. and in mid-1999, issued its first IPO of 1.2 million shares.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
663
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Signature items: Mesquite-grilled steaks, chicken and seafood, such as its 18-oz. Texas T-Bone, Chicken Breast Cheyenne—<br />
with mushrooms and pepper cheese and Mountain Trout. Also menus ribs, pork chops, variety of Mexican fare including<br />
enchiladas, burritos, chimichangas, tacos and fajitas as well as entree salads and 2 types of chili—Southwestern White, a<br />
blend of chicken, white beans and Tex-Mex spices topped with jack cheese and sour cream and Black Bean, a spicy<br />
concoction of black beans topped with jack cheese, sour cream and scallions. Mesquite-based entrees include choice of<br />
baked potato, baked sweet potato, fries, rice and black, refried or baked beans; served with Texas toast. Tex-Mex entrees<br />
served with rice and choice of beans. Full liquor service available; about 12% of revenues. Signature features: Shot’aritas (25¢<br />
a piece) and Tex’aritas, a 45-oz. margarita designed to be shared ($7.95). Children’s menu features burritos, tacos, chicken<br />
strips and hamburgers, all for $1.99. Alcohol accounts for approximately 10% of sales. <strong>Menu</strong> Prices: $4.39–$19.99. Checks<br />
Averages: $8.77–$11.26.<br />
<strong>Menu</strong> Development |<br />
Condiments continue to be refined on chain menus as operators rely on sauces, dressings and other elements to add flavor,<br />
texture or sophistication to menu items. As consumer tastes have become more upscale, high-end condiments that would<br />
have once been thought unusual on chain menus are now increasingly common. The red-pepper aioli at McCormick &<br />
Schmick’s or the onion marmalade at La Madeleine are just two examples. Classic dishes are also updated through condiment<br />
usage. A simple fish sandwich can be enhanced with unusual tartar sauces. Tumbleweed Southwest Grill flavors its sauce<br />
with tequila, while Pizzeria Uno adds red pepper and Champp’s incorporates red chili. Chicken sandwiches can also benefit<br />
from interesting sauces. Togo’s tops its version with creamy kalamata olive, sun-dried tomato and garlic spread, while Bob<br />
Evans uses a Wildfire BBQ sauce and Hard Rock Café features spicy Cajun mustard mayonnaise. Ethnic flavors can also<br />
easily be incorporated into a dish through condiments. Panera maintains the Mediterranean theme of its Mediterranean Veggie<br />
sandwich with a topping of roasted-garlic hummus, while Atlanta Bread Co. focuses on Italian by topping its bella basil chicken<br />
sandwich with a basil pesto spread. Flavorful condiments can also boost interest in healthful menu items. At McAlister’s Deli,<br />
for example, the veggie sandwich is topped with a Parmesan-peppercorn dressing. (Nation’s Restaurant News)<br />
Personnel |<br />
Glennon Mattingly, Chief Financial Officer<br />
Terrance Smith, Chairman<br />
Gary Snyder, Vice President of Operations<br />
News & Other |<br />
Tumbleweed announced that it is going private after being publicly traded for five years. The company cited the smaller size of<br />
the company as the main factor for privatization. It also intends to revitalize the brand with a new “contemporary Southwest”<br />
décor and menu, according to CEO Terrance A. Smith. The new menu will offer Mexican foods and grill specialties, as well as<br />
a décor that features barbed-wire-patterned booths, seatbacks with a skull design, yellow-tinted walls and contemporary<br />
paintings and photos of the West. Tumbleweed is requiring all 31 company-owned, 21 franchised and five internationally<br />
licensed units to comply with the remodel. (NRN 10/20/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
664
Villa Pizza & Cozzoli's Pizza<br />
Headquarters<br />
17 Elm St., Morristown, New Jersey 7960 USA<br />
Tel: (973) 285 4800 Fax: (973) 285 5252<br />
www.villapizza.com<br />
Ownership: Private<br />
Segment: Limited Service Pizza<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 85,000 75,000 106,000<br />
Company-owned ($000) 55,000 50,000 68,000<br />
Franchised ($000) 30,000 25,000 38,000<br />
U.S. Number of Units 203 194 200<br />
Company-owned 130 125 130<br />
Franchised 73 69 70<br />
International Sales ($000) 12,000 10,500 10,000<br />
International Units 13 11 10<br />
Average Sales/Unit ($000) 450 500 523<br />
Concept Positioning |<br />
Villa Pizza and Cozzoli’s Pizza are both quick-service pizza chains that operate units primarily in shopping malls. The<br />
expansion strategy for both concepts includes opening more nontraditional units in airports, universities, hospitals, business<br />
and industry, and stadiums.<br />
In addition, the company recently developed the Villa Pizza Cucina concept. It is specifically for the nontraditional market.<br />
Cozzoli’s Pizza dates back to 1951 and was one of the first Italian restaurants to enter food courts. With more than 60<br />
locations in 10 states and four foreign countries, Cozzoli’s is currently found in airport and shopping mall food courts. It merged<br />
with Villa Enterprises Management in July 1999.<br />
Villa Pizza began 30 years ago as a single pizzeria adjacent to the Ed Sullivan Theater on Broadway in New York City. Today,<br />
it claims it is the largest privately owned pizza and Italian specialty chain in the U.S. Its traditional Italian menu includes 80 of<br />
Founder Michele Scotto’s Old World Italian recipes that use fresh cheeses, seasonings, vegetables and homemade sauces.<br />
Villa Enterprises Management Ltd. also owns and operates Casa Java, an upscale coffee concept.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Neapolitan, Sicilian and stuffed pizzas. Featured combo meal offers individual stuffed pizza, side salad and<br />
medium drink for $5.79. Other menu items including calzones, sandwiches such as meatball, salads and pastas such as<br />
vegetable lasagna, baked ziti, spaghetti with meatballs, sausage roll, stromboli, and chicken cutlet parmigiana prepared from<br />
over 80 Old World Italian recipes each day.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
665
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Villa Pizza launched a unit at the student union of Ohio State University in Columbus, OH. The unit, operated by a local<br />
franchisee who leases space and pays OSU a percentage of sales, joins other concepts in the union such as Wendy’s,<br />
Freshens, Wall Street Deli and The Steak Escape. Villa Pizza also operates a unit at Princeton University’s student union. In<br />
that venue, the school pays the chain a percentage of sales in return for the chain’s training, support and products. (R&I<br />
4/15/03 p39)<br />
Villa Pizza parent Villa Enterprises purchased 80-unit Everything Yogurt Brands, a division of the Nicotra Group. The price was<br />
not disclosed. New York-based Everything Yogurt operates some 80 food court units in malls and nontraditional sites under<br />
seven different brands: Everything Yogurt; Everything Yogurt and Salad Café; Greenleaf’s Grille; Bananas; Gretel’s Pretzels;<br />
South Philly Steak and Fries; and Treat Street. Villa Pizza’s more than 200 units operate in mall food courts and nontraditional<br />
sites in 35 states and four countries. (NDNF 8/5/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
666
Village Inn<br />
Headquarters<br />
400 W. 48 Ave., Denver, Colorado 80216 USA<br />
Tel: (303) 296 2121 Fax: (303) 297 0677<br />
www.villageinnrestaurants.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 308,851 308,000 299,741<br />
Company-owned ($000) 157,640 158,000 152,221<br />
Franchised ($000) 151,211 150,000 147,520<br />
U.S. Number of Units 225 225 225<br />
Company-owned 109 109 109<br />
Franchised 116 116 116<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,446 1,435 1,396<br />
Concept Positioning |<br />
VICORP operates and franchises full-service, family-oriented restaurants under the names Village Inn Pancake House<br />
Restaurants and Village Inn Family Restaurants. Both are open 18–20 hours a day, beginning at 6:00 a.m.<br />
Units are freestanding, averaging 5,000 sq. ft., with seating for 165 patrons at tables and booths. Display areas for bakery<br />
goods have been added to many units. The company is currently updating existing units though more contemporary interiors<br />
with lighter colors and brass fixtures. Exteriors include tiered awnings, a blue-green roof and increased signage.<br />
The first Village Inn opened in Denver in 1958. The company was incorporated in 1959, and the first franchised restaurant<br />
opened the next year. A number of acquisitions were made in the mid-1980's.<br />
Parent Vicorp was incorporated in 1959. It was reorganized by a group of shareholders in 1977 and made its first public<br />
offering of stock in August 1982. In mid-2001, Vicorp completed its merger with affiliates of Goldner Hawn Johnson and<br />
Morrison Inc. and BancBoston Capital, thereby taking the company private. Vicorp is also franchises the Baker's Square<br />
concept.<br />
<strong>Menu</strong> Positioning |<br />
All-day breakfasts featuring pancakes, waffle, eggs, omelets and breakfast meats. Also menus sandwiches including grilled<br />
line, steaks, pork chops, fried chicken and salad and pizza buffets and fresh-baked pies. Daily entree and pie specials<br />
featured. Beer and wine available at a few locations. Check Average: $6–$9.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
667
Personnel |<br />
Robert Kaltenbach, President<br />
Jeff Guido, Vice President of Operations<br />
Tom Rink, Vice President of Operations<br />
Mark Hampton, Vice President of Purchasing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Vicorp Restaurants Inc. owner BancBoston Capital sold the company to Wind Point Partners, a Southfield, MI-based private<br />
equity firm, in a $225.5 million leveraged-buyout deal. Denver-based Vicorp owns and franchises more than 370 Village Inn<br />
and Bakers Square family-dining restaurants. The chain was acquired in May 2001 by BancBoston, Goldner Hawn Johnson &<br />
Morrison and Fairmont Capital Inc. for $174 million. (NDNF 6/19/03)<br />
Vicorp Restaurants’ new chief executive plans a menu revamp and unit expansion of the company’s Village Inn and Bakers<br />
Square chains. Debra Koenig, who joined the company in June after 25 years with McDonald’s Corp., comes on board<br />
following the acquisition of the 371-unit family-dining company by Wind Point Partners, a private equity firm based in Chicago.<br />
New menu items are using upscale ingredients such as portabello mushrooms and spinach. Vicorp added eight units in fiscal<br />
2002 and is on track to add 14 more in fiscal 2003. Future growth will primarily be company-operated units. New prototype<br />
designs for both 233-unit Village Inn and 148-unit Bakers Square will be used for the majority of new development. There<br />
currently are six Bakers Square restaurants with the new look and 24 Village Inn units with a fresh design. The new prototypes<br />
are designed to help drive dinner business. Village Inn units with the new design are performing 30% better during dinner<br />
hours than older Village Inn outlets, according to the company. In addition, refurbishing and remodeling is planned for the<br />
interior and exterior of aging units. (NRN 7/28/03 p8)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
668
Vinny T's of Boston<br />
Headquarters<br />
237 Highland Ave. Suite 2, Needham, Massachusetts 02494 USA<br />
Tel: (781) 444 1935 Fax: (781) 444 2291<br />
www.vinnytestas.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 29,350 30,000 -<br />
Company-owned ($000) 29,350 30,000 -<br />
Franchised ($000) - - -<br />
U.S. Number of Units 9 9 -<br />
Company-owned 9 9 -<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,391 3,450 -<br />
Concept Positioning |<br />
A family-style Italian dinnerhouse chain, Vinny T's popularity in the Boston area prompted former competitor Buca Inc., owner<br />
of the Buca di Beppo Italian chain, to acquire the nine-unit casual-dining concept in early 2002. The restaurants are decorated<br />
to look like the lower east side of Manhattan in the 1940s. The units seat 240-350 diners and measure 7,500-8,000 sq.ft. Many<br />
pictures of Italian landmarks and Italian-Americans in New York during the 1940s adorn the walls. The wait staff wears white<br />
shirts, black slacks and bow ties.<br />
Vinny T's first opened in Brookline, MA, in 1993 by co-founders Marty Bloom and Richard Tanz. Tanz and Bloom quickly<br />
expanded the concept into nine units and caught Buca Inc's eye. Buca bought the concept in January 2002. Average annual<br />
unit volumes are about $3.8 million. Takeout sales account for approximately 10% of total sales. Joseph Micatrotto is<br />
chairman, president and chief executive officer of Buca Inc. Bloom will assist in the Vinny T's expansion.<br />
<strong>Menu</strong> Positioning |<br />
Specializes in southern Italian cuisine. Its menu features pastas and parmigiana entrees, seafood and grilled meat dishes and<br />
house specialties such as the Shrimp and Chicken Piccata-shrimp sauteed in a piccata sauce mixed with fresh lemon, capers,<br />
cracked black pepper and fresh thyme and served with steamed broccoli and rigatoni marinara ($16.95). Most of its entrees<br />
are served family style in massive portions that are meant to satisfy two or three diners. Vinny T's also offers ten traditional<br />
Italian appetizers including minestrone soup ($3.95); bruschetta ($6.95, single serving; $12.95, family serving); hot antipasto<br />
containing mussels, baked clams, fried calamari and fennel sausage and peppers ($15.95, family serving only); and fried<br />
ravioli ($4.95, single serving; $8.95, family serving). Checks average $20 per person.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
669
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Vinny T’s introduced several new entrees with its latest menu. The Buca-owned chain is supporting the launch with advertising<br />
and $5 and $10 discount deals. Offerings include: ■ Linguini Frutti di Mare—shrimp, mussels, calamari and clams in a light<br />
garlic-and-tomato sauce with fresh basil and served over linguine ($18.95) ■ Penne Fiorentina—sauteed chicken, baby leaf<br />
spinach, roasted red peppers and Romano cheese tossed with penne pasta and a cream sauce flavored with crushed red<br />
pepper ($12.95 for one; $19.95 for two) ■ Shrimp Parmigiana—shrimp in marinara and béchamel sauces, topped with<br />
shredded mozzarella and seasoned bread crumbs, then lightly toasted and served over spaghetti ($17.95) ■ Lobster Fra<br />
Diavolo—whole main lobster (1.25 pounds) baked with crab meat stuffing and served with linguine pasta tossed with spicy<br />
diavolo tomato sauce ($26.95). (Nation’s Restaurant News 9/29/03 p14, Company Web Site 10/7/03)<br />
News & Other |<br />
Buca Inc. purchased a farmhouse near Tuscany, Italy, that it will use as a training facility for chefs and store managers.<br />
Located in the town of Cermenino, it is near the La Tancia winery, which produces wines for Buca’s restaurants. The house is<br />
being remodeled and is expected to be ready by 2005. Buca, operator of more than 90 Buca di Beppo and Vinny T’s<br />
restaurants, already sends managers and chefs on trips to Italy three times a year. The farmhouse will be part of those cultural<br />
and culinary trips and will be used as a location for wine tastings. (NRN 3/17/03 p18)<br />
Vinny T’s of Boston for the third quarter ended September 28, reported same-store sales decreased 9%. (NRN Daily NewsFax<br />
10/24/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
670
Waffle House<br />
Headquarters<br />
5986 Financial Drive, Norcross, Georgia 30071 USA<br />
Tel: (770) 729 5700 Fax: (770) 729 5758<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 740,000 730,000 700,000<br />
Company-owned ($000) 340,000 335,000 320,000<br />
Franchised ($000) 400,000 395,000 380,000<br />
U.S. Number of Units 1,400 1,395 1,360<br />
Company-owned 637 635 630<br />
Franchised 763 760 730<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 580 575 507<br />
Concept Positioning |<br />
Waffle Houses, 24-hour, 365-days-a-year, quick-service restaurants, serve breakfast, lunch and dinner. While the chain's<br />
menu focus is broad-based, the principal customer base is largely blue-collar male.<br />
Units are very small, seating 35–50 customers at booths and counters. Most are freestanding and located in high-traffic areas<br />
and off interstate highway exits.<br />
The beginnings of the Waffle House chain date back to 1955 and little change has occurred through the years. The company<br />
believes that its success has been based on its low-overhead, low-priced operations. Waffle House does not advertise.<br />
<strong>Menu</strong> Positioning |<br />
Focus on grilled items, especially traditional breakfast favorites. Also menued are sandwiches such as the 1/4-lb patty melt<br />
and chicken melt, hash browns six different ways and breakfast sandwiches. Current trend toward diet-conscious consumers<br />
includes 95% fat-free ham, extra-lean pork chops and skinless chicken as well as breakfast cereals and oat bran muffins.<br />
<strong>Menu</strong> Prices: $4–$8.<br />
Personnel |<br />
Joe Rogers, Chief Executive Officer<br />
Walt Ehmer, Vice President of Finance<br />
Bert Thornton, Chief Operating Officer<br />
Randy Rilgus, Director of Purchasing<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
671
<strong>RISE</strong> COMPANY PROFILE<br />
Wendy's Old Fashioned Hamburgers<br />
Headquarters<br />
4288 W. Dublin-Granville Rd., Dublin, Ohio 43017 USA<br />
Tel: (614) 764 3100 Fax: (614) 764 6894<br />
www.wendys.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 6,825,000 6,156,000 5,757,000<br />
Company-owned ($000) 1,550,000 1,383,000 1,300,000<br />
Franchised ($000) 5,275,000 4,773,000 4,457,000<br />
U.S. Number of Units 5,549 5,315 5,095<br />
Company-owned 1,183 1,096 1,034<br />
Franchised 4,366 4,219 4,061<br />
International Sales ($000) 710,000 681,200 655,000<br />
International Units 704 728 697<br />
Average Sales/Unit ($000) 1,280 1,199 1,257<br />
Concept Positioning |<br />
Wendy’s International owns, operates and franchises Wendy’s Old Fashioned Hamburger and Tim Hortons stores.<br />
Restaurants are generally freestanding and average 2,400 sq. ft. with seating for 92. Exteriors feature a copper colored<br />
mansard type roof, awnings and new signage with red letters on a white background. Interiors are decorated with wallpaper,<br />
carpeting and stained glass. Most have solarium extensions, typically 10 ft. by 30 ft., that seat an additional 28 "under glass."<br />
New units average 2,910 sq. ft. with seating for 94. They have double pick-up windows for drive-through service. Wendy’s also<br />
has a scaled down prototype that seats 74 patrons in a 1,600 sq. ft. unit for locations that cannot support a full-sized<br />
restaurant. Compact units for "walk-through only" and "drive-through only" business also have been developed.<br />
In 1969, David Thomas, formerly with Kentucky Fried Chicken, opened the first Wendy's in Columbus, OH. The company<br />
instituted a franchise program in 1972 and made its first public stock offering in 1975. In 1995, the company acquired Tim<br />
Hortons, Canada’s second largest quick-service restaurant chain. In March 1997, the company celebrated the opening of its<br />
5,000th Wendy’s unit.<br />
The Franchise Advisory Council (FAC) is a vital part of the company's operation as it is the FAC's role to maintain open and<br />
essential communications between the company and franchisees. Its national advertising (as well as in Canada) is also run<br />
with franchisee input.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: quarter-pound hamburger. Also featured variety of specialty burgers and melts, chili, fish and chicken<br />
sandwiches and nuggets, prepackaged salads, baked potatoes, fries and frosty, a soft-serve dairy dessert. Rolled out Fresh<br />
Stuffed Pitas—flatbread stuffed with chicken, cheeses, vegetables, salad greens and reduced fat dressings; menus 4 varieties<br />
from $1.99–$3.99. Breakfast service optional; in about 14% of domestic company stores and about 24% of domestic franchise<br />
stores. Check Averages: $4.10.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
672
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Wendy’s is offering a Southwest Chicken Caesar as a limited-time offer. The premium salad features romaine, shredded<br />
parmesan, spicy chicken breast filet, seasoned corn and black beans, grape tomatoes and a Southwestern Caesar dressing.<br />
(Restaurant Business <strong>Menu</strong> Strategies Newsletter)<br />
Wendy’s plans to launch chicken strips later this year. According to comments from CEO Jack Schuessler in a conference call,<br />
the item will be added in the second half of 2003. Boneless chicken strips are already popular items at Popeyes, Domino’s,<br />
Hardee’s, KFC and Papa John’s. (Restaurant Business Daily News, 6/9/03)<br />
Vegetarians can now enjoy a greater variety of options on fast-food menus as operators work to meet demand for healthier<br />
foods and appeal to consumers, especially women, who are likely to eat elsewhere to find healthy choices. Upgraded salads,<br />
soy burgers, veggie wraps and soups, and yogurt smoothies are increasingly common. Burger King now offers a Veggie<br />
Burger, which can be prepared on a separate grill from its meat options upon request. It also has several side salads. Chipotle<br />
positions itself as a fresher approach to Mexican and offers a variety of meatless options, including a vegetarian burrito that<br />
can be customized, a side of rice and beans, and guacamole. McDonald’s also has a McVeggie Burger and has supplemented<br />
its menu with a line of premium salads served with Newman’s Own dressings. Subway offers a Veggie Delite sandwich, and<br />
select stores offer Gardenburger products. Wendy’s now has a range of meatless options, including four Garden Sensations<br />
salads and baked potatoes with several meatless toppings. Panera also broadened its vegetarian options this year. While it<br />
previously only offered vegetarian salads and soups, it now serves a Garden Vegetable Sandwich on ciabatta bread.<br />
(Vegetarian Times, 9/03, p63)<br />
Wendy’s is testing lighter meal combinations in five markets. Each of the combos has less than 10 grams of fat, and the line is<br />
being billed as “Four Under 10.” They include a grilled chicken sandwich, side salad with fat-free dressing and diet soft drink<br />
($4.59); junior hamburger with the same salad and drink ($2.77); large chili with the same salad and drink ($3.59); and plain<br />
baked potato, small chili and the same drink ($2.97). (Restaurant Business <strong>Menu</strong> Strategies Newsletter, 8/27/03, NRN Daily<br />
NewsFax, 8/25/03)<br />
Wendy’s introduced a four-market, 420-unit test of low-fat options for its Kids’ Meals. Options included a melon cup in lieu of<br />
french fries and 2%-fat milk or 1% chocolate milk instead of a soft drink. The milk and fruit cup are also available à la carte for<br />
89¢. (RestaurantBiz.com 9/22/03)<br />
Major limited-service chains are reworking their kids meals to make them healthier. Subway has revamped its Kids Pak with a<br />
fruit roll-up instead of a cookie and 100% fruit juice instead of a soft drink. The sandwich remains the same. The meals also<br />
include “Jared’s Steps to Healthier Kids” information cards. Named for spokesman Jared Fogle, they include toys designed to<br />
encourage activities such as golf, football and kite-flying. Wendy’s is also testing kid-oriented items that offer reduced-fat white<br />
or low-fat chocolate milk as a soda alternative and a fresh fruit cup option to replace fries if desired. (Food Institute Report<br />
9/29/03 p7, Brandweek 9/22/03 p5, NRN Daily News Fax 10/1/03)<br />
Wendy’s introduced Homestyle Chicken Strips. Made with breast fillet meat, three strips are served with a choice of deli honey<br />
mustard, heartland ranch or spicy southwest chipotle. (Company Web Site 11/6/03)<br />
Nuts are gaining ground on limited-service menus as chains in that segment upscale their offerings. The popularity of fastcasual<br />
Asian menus has broadened consumer exposure to Asian recipes that often include nuts and some operators are now<br />
incorporating nuts into mainstream menu items to add a pan-Asian influence. Wendy’s offers nuts in its Mandarin Chicken<br />
Salad with almonds and Schlotzsky’s uses nuts not only as a salad topping, but also in sauces such as its Thai peanut sauce<br />
on a Thai Chicken Pizza. Another popular offering is an Asian Almond Chicken Wrap and almond-topped asparagus soup.<br />
Atlanta Bread Company features almonds on its Georgian Chicken Sandwich as well as a Curry Chicken Salad and Chopstix<br />
Salad. (QSR 10/03 p59)<br />
Franchise Activity |<br />
Wendy’s franchisee Scott McClenahan installed credit and debit card payment terminals at his drive-thru order board to help<br />
speed authorizations. He said he is averaging 85–90 seconds per drive-thru transaction and that overall his card transactions<br />
are in the mid-70-second range. McClenahan asked his processor to waive signature and PIN requirements. The transactions<br />
are fully authorized and his average card-payment ticket is some 40% higher than the average cash transaction. The average<br />
for a card transaction at McClenahan’s Wendy’s is about $9. McClenahan is collaborating with Visa USA in a payment card<br />
acceptance pilot test. Among other quick-service chains experimenting with card payment are McDonald’s and Burger King.<br />
(NRN 2/17/03 p8 & 46)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
673
<strong>RISE</strong> COMPANY PROFILE<br />
Wendy’s franchisee Pennant Foods Corp. was acquired by Brockway Moran & Partners, a private equity firm based in Boca<br />
Raton, FL. Pennant operates 51 Wendy’s outlets in Southern California and 38 more in its home base of Knoxville, TN. The<br />
purchase price was not revealed but a Brockway executive noted that Pennant’s revenues will exceed $100 million in 2003<br />
and that the group plans to open between six and 10 new Wendy’s in California this year. No executive or other changes are<br />
planned as a result of the deal. (NRN 3/31/03 p3; FIR 3/24/03 p4)<br />
Technology |<br />
Wendy's is advertising the nutritional information found on its Web site. Stores are promoting the Web site with displays in<br />
stores advising customers to visit www.wendys.com for nutritional information. (Restaurant Business 10/1/03 p12)<br />
Wendy’s Old Fashion Hamburgers has introduced electronic payment systems that accept all major credit cards. More than<br />
70% of domestic units will accept electronic payment by year-end. (NRN Daily NewsFax 12/8/03)<br />
Personnel |<br />
John Schuessler, Chairman<br />
Kerri Anderson, Chief Financial Officer<br />
Thomas Mueller, President<br />
Donald Calhoon, Vice President of Marketing<br />
George Condos, Vice President of Operations<br />
News & Other |<br />
Villa Pizza launched a unit at the student union of Ohio State University in Columbus, OH. The unit, operated by a local<br />
franchisee who leases space and pays OSU a percentage of sales, joins other concepts in the union such as Wendy’s,<br />
Freshens, Wall Street Deli and The Steak Escape. Villa Pizza also operates a unit at Princeton University’s student union. In<br />
that venue, the school pays the chain a percentage of sales in return for the chain’s training, support and products. (R&I<br />
4/15/03 p39)<br />
Wendy’s will launch chicken strips later this year. It joins several other fast-food and quick-casual chains already offering this<br />
item. (FIR 6/16/03 p8)<br />
Julia Child and the late Dave Thomas were named recipients of the Presidential Medal of Freedom by President George W.<br />
Bush at a July White House ceremony. The medal is the nation’s highest civilian honor. Child is the 90-year-old chef,<br />
cookbook author and PBS TV star and Thomas, who founded Wendy’s Old Fashioned Hamburgers in 1969 and was the<br />
former chairman of the company, died last year at the age of 69. (NRN 8/4/03 p100)<br />
Subway and Wendy’s were the leaders in a survey of customer loyalty to national quick-service brands that was conducted by<br />
TNS Intersearch, a market research firm based in Horsham, PA. Subway scored a consumer-commitment level of 12% and<br />
Wendy’s, 10%, the study found. Industry leaders McDonald’s and Burger King came in with 6% and 4% of consumers<br />
committed to them, respectively. TNS noted that three out of 10 fast-food consumers are not committed to any specific brand<br />
and only one-fifth of customers are especially committed to just one brand. Regional chains such as Panera Bread, In-N-Out<br />
Burger, Chipotle and Chick-fil-A engender the most brand loyalty among customers. The study polled more than 1,000 fastfood<br />
customers in March. (NRN 8/4/03 p3)<br />
Wendy’s International Inc. reported same-store sales for its U.S. company-owned units increased 0.4% in August. Samestores<br />
sales for franchised units increased 1.9% to 2.2%. Tim Hortons Canada announced increased same-store sales from<br />
3.5% to 3.7%, while Tim Hortons U.S. reported same-store sales increased 5.1% to 5.3%. (Nation’s Restaurant News 9/15/03<br />
p12)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
674
<strong>RISE</strong> COMPANY PROFILE<br />
Wendy’s International is testing “lighter” combo meals in five markets: New York, Miami, Philadelphia, Seattle and Columbus,<br />
OH. Each features less than 10 grams of fat. Varying by market, the meals feature existing items such as the grilled-chicken<br />
sandwich, junior hamburger and baked potato, with most combinations including a side salad. In Seattle, prices range from<br />
$2.77–$4.59. The meals’ calorie counts range from 380–510. In-store merchandising materials are supporting the test in all<br />
five markets but TV and radio advertising are being tested in Seattle. In related news, the chain will help customers make<br />
informed nutrition choices by printing a statement on its carryout bags, trayliners and menu boards systemwide that directs<br />
customers to its Web site. The company said it is in the midst of a major redesign of its Web site’s nutrition section, which was<br />
slated for completion by mid-September. (NRN 9/1/03 p3; NDNF 9/9/03)<br />
Wendy’s International expects that 3,000 of its restaurants will accept credit and debit cards by November. The total includes<br />
both company- and franchise-owned restaurants. (FIR 8/11/03 p6)<br />
Tennessee Tech University has turned over its foodservice operations to Chartwells College and University Dining Services. It<br />
had been the only public university in Tennessee still handling its own foodservice. Chartwells will make an investment of<br />
about $3.5 million in renovating Tennessee Tech’s foodservice facilities over a five-year period. The retail food court, which<br />
now includes a Sbarro, Taco Bell, salad bar and grill station, will be expanded with a Wendy’s outlet and a sub shop. Also<br />
planned are construction of a c-store and the complete renovation of a residential dining facility. (FSD 8/15/03 p1)<br />
Wendy’s reported same-store sales for September grew 3.5% at both company-owned restaurants and franchised units. Tim<br />
Hortons announced same-store sales increased 6.5% in Canada and 6.9% domestically. (NRN Daily NewsFax 10/3/03)<br />
Wendy’s International expects to open between 560 and 605 stores during 2003. During the first six months of this fiscal year,<br />
it opened 177 new units of Wendy’s, Tim Hortons and Baja Fresh. At the end of June, it had a total of 8,934 domestic and<br />
international stores. (FER 9/03 p14)<br />
Wendy’s International is testing an 8-oz. serving of milk as an option in its Kids Meals at 420 stores in Columbus, OH; Miami;<br />
Philadelphia; and Raleigh, NC. Choices will include reduced-fat, low-fat or chocolate milk. The company said it has offered<br />
reduced-fat white milk in paper cartons for many years. In addition, there will be no extra charge for substituting a fruit cup with<br />
honeydew melon and cantaloupe for french fries. Wendy’s said it will promote the new options via TV ads and in-store<br />
merchandising materials with the theme “Let Kids be Choosy.” (NDNF 9/23/03)<br />
Wendy’s International for the third quarter ended September 28, reported revenues increased 12% compared to the same<br />
quarter last year. Operating income increased 6.8%. (NRN Daily NewsFax 10/24/03)<br />
Wendy’s International Inc. for the five weeks ended November 2, reported same-store sales increased 7.6% at companyowned<br />
units and 6.7% at franchised units. (NRN Daily NewsFax 11/6/03)<br />
Wendy’s International sold 15 Columbus, OH, units to Dave Thomas’ children. They are now franchisees in the chain, which is<br />
about 80% owned by franchisees. (FIR 10/6/03 p6)<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
Operators are responding to the rise in beef costs with menu shifts and price hikes. While McDonald’s and Wendy’s have been<br />
stressing beef alternatives such as salads and chicken items, more operators are resorting to price hikes to offset the rising<br />
costs. Brinker International instituted a systemwide 2% price increase, as did Back Yard Burgers. Similarly, Frisch’s<br />
Restaurants increased prices 1.1% at its Big Boy brand. Outback Steakhouse is expected to follow suit next year with a 1.5%<br />
price increase. Still other operators are looking for alternatives. The Cheesecake Factory is hopeful that it will be able to<br />
negotiate with suppliers, though it recognizes that a slight price increase is likely. Some chains expect ground-beef costs to<br />
rise 4%–6% next year. (FIR 10/27/03 p3)<br />
Wendy’s for the four weeks ended November 30, reported that same-store sales rose 9.4%. (NRN Daily NewsFax 12/4/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
675
<strong>RISE</strong> COMPANY PROFILE<br />
Burger King’s french fries have a higher combined level of trans fatty acids and saturated fats than those from McDonald’s or<br />
Wendy’s, according to Consumer Reports’ November issue, which compares the three largest burger chains’ fries. A mediumsized<br />
serving of Burger King’s fries has 11 combined grams of the two fats, compared to 7.5 grams at Wendy’s and 10 grams<br />
at McDonald’s. McDonald’s had said that it would cut trans fats in its fries by nearly 50% by early 2003, but it now says that it<br />
has no timeframe and is continuing its ongoing tests in good faith. Wendy’s and Burger King say they are considering<br />
alternative oils. Consumer Reports noted that lower-trans-fat oils “are not yet available in quantities needed by fast-food<br />
chains.” (NDNF 11/10/03)<br />
Wendy’s for the four weeks ended December 28, reported that same-store sales rose 9% at domestic company owned stores.<br />
(NRN Daily NewsFax 1/7/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
676
WesterN SizzliN<br />
Headquarters<br />
317 Kimball Ave., N.E., Roanoke, Virginia 24023-2167 USA<br />
Tel: (540) 345 3195 Fax: (540) 345 0831<br />
www.western-sizzlin.com, www.freshchoiceinc.com<br />
Ownership: Private<br />
Segment: Full Service Family Steak<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 307,780 334,335 311,823<br />
Company-owned ($000) 22,780 29,929 32,089<br />
Franchised ($000) 285,000 304,406 279,734<br />
U.S. Number of Units 193 232 221<br />
Company-owned 7 17 198<br />
Franchised 186 215 23<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,400 1,436 162<br />
Concept Positioning |<br />
WesterN SizzliN Steak House is a family-oriented, moderately priced restaurant chain that caters to a blue collar, lower- to<br />
middle-income customer. Service is semi-cafeteria style with waitress assistance.<br />
Older units feature a Western-themed decor with bright red upholstery and carpeting. Seating capacity ranges from 150–400<br />
customers. Newer remodeled units evoke a more contemporary appeal than the Western-themed units.<br />
<strong>Menu</strong> changes, remodeling of units and an aggressive international expansion program are all current active programs.<br />
In addition, the company has two other concepts: County Fair Buffet and Bakery and Market Street Buffet and Bakery. The<br />
County Fair concept includes the WesterN SizzliN trade name but has a greater emphasis on food bars than its traditional<br />
steakhouse units. The Market Street Buffet has been in test since May 1992 and offers an all-you-can-eat, fixed price menu.<br />
Franchisees purchase their own meat, and then cut it to WesterN SizzliN specifications.<br />
Austins Steaks and Saloon is a casual-dining chain open for lunch and dinner that is built around a rustic motif enhanced by<br />
wood planked floors and corrugated tin finishes, oak and brick accents and a western-style bar. To further create excitement,<br />
Austins encourages its customers to bring ball caps, automobile license plates and business cards and add them to the<br />
restaurant's decor. Its menu is based on generous portions and fresh ingredients including on-site hand-cutting its steaks each<br />
day. Units vary in size ranging from 3,620–6,300 sq. ft, with seating for 125–200 customers.<br />
The company was founded by Nick Pascarella in 1962 with a small restaurant seating 120 customers in Augusta, GA.<br />
Franchising began in 1966. Upon Mr. Pascarella's death, the company was sold. In October 1992, WesterN SizzliN filed<br />
Chapter 11 bankruptcy. In late 1993, under the leadership of a group of franchisees, it emerged from bankruptcy.<br />
In mid-1999, it completed a reverse merger with Austins Steaks & Saloon, Inc. The surviving corporate entity is public and<br />
traded under the symbol STAK. In 2000, the company assumed control of the Quincy’s chain and has since either closed or<br />
converted the system to its own brand.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
677
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Features variety of USDA Choice steaks, 8-oz. sirloin is most popular. Also menus chop steak, sirloin tips and hamburgers as<br />
well as chicken, shrimp and other seafood sides such as onion rings, fried mushrooms, soup, salad bar, baked potatoes, fries,<br />
hash browns, desserts, and beverages. All meals include choice of potato. 8–10 luncheon specials and 1 or 2 dinner specials<br />
offered daily. Also kid's meal program. Austins Steaks: signature items—hand cut steaks. All dinners include salad or soup,<br />
sugar biscuits and honey butter and choice of potato or vegetable side. Also menus salads, sandwiches, chicken and fish.<br />
Best sellers include Chicken Fried Steak served with homemade mashed potatoes and creamy gravy. Full liquor service<br />
available. Check Averages: $7.00–$15.50.<br />
<strong>Menu</strong> Development |<br />
Western Sizzlin’ added several new menu items in conjunction with its launch of a new prototype in Springdale, AR. Offerings<br />
include a collection of Flamekist offerings such as a 9-oz. sirloin, fried catfish fillets and baked salmon on the evening buffet,<br />
as well as fresh baked goods and salads. (NRN Daily NewsFax)<br />
Personnel |<br />
Paul Schorr, Chairman<br />
Robyn Mabe, Chief Financial Officer<br />
David Hoof, Chief Operating Officer<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
678
Western Steer<br />
Headquarters<br />
129 Fast Lane P.O. Box 3130, Mooresville, North Carolina 28117 USA<br />
Tel: (704) 660 5939 Fax: (704) 799 6199<br />
www.westernsteersteakhouse.com<br />
Ownership: Private<br />
Segment: Full Service Family Style<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 24,487 30,900 37,450<br />
Company-owned ($000) 10,428 12,300 14,650<br />
Franchised ($000) 14,059 18,600 22,800<br />
U.S. Number of Units 23 28 33<br />
Company-owned 11 12 13<br />
Franchised 12 16 20<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,064 1,103 1,126<br />
Concept Positioning |<br />
Western Steer is a chain of family-oriented, moderately priced restaurants designed to appeal to a broad segment of the<br />
population. The restaurants are open for lunch and dinner seven days a week. Service is waitress assisted; however, patrons<br />
order from menu boards which have recently been updated to include an expanded menu. In 1992, an extensive renovation<br />
program, which included adding an "all-you-can-eat" buffet food bar and in-house bakery and changing the store appearance<br />
to highlight the new format, was undertaken. Restaurants carrying the new format are signed Western Steer–Steaks, Buffet<br />
and Bakery.Restaurants are generally freestanding, next to freeways or major highways. A standard unit occupies 7,800 sq. ft.<br />
and seats 288 customers. Buildings feature massive expanses of glass, a large colorful sign, bright exterior, subdued interior<br />
lighting, and a western decor.An on-premise bakery has also been developed. Customers can watch preparation and baking<br />
of fresh yeast rolls, cookies, brownies and other items, all included with the meal as well as available for takeout. Conversion<br />
of older Western Steer units into the steak, buffet and bakery concept continues; the goal is to upgrade all Western Steers to<br />
this format. In addition, the company also operates nine-unit Prime Sirloin is a more upscale concept, especially in building<br />
design and interior decor. Units include an on-premise bakery, bright high-energy color schemes and a new menu board for<br />
dual order/paying lines. The first Western Steer restaurant was opened in Hickory, NC, on June 25, 1975. Franchising of the<br />
concept began three years later. In 1989, its parent corporate name was changed to WSMP, Inc. and then in early 1998, it<br />
was changed to Fresh Foods Inc. In October 1999, Fresh Foods finalized the sale of its Claremont Restaurant Group holdings<br />
to Carousel Capital Partners, L.P.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
679
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Western Steer: Signature items: line of USDA Choice steaks (including sirloin, New York strip, T-bone, filet mignon and<br />
chopped sirloin). Also menus seafood and chicken entrees. Dinners served with baked potato or fries, toast and butter or sour<br />
cream. All-American Food Bar includes selection of at least 2 meats, 8 hot vegetables, several homemade desserts, fresh<br />
fruits, cheese, hot breads and variety of salads and garden salad items; some 45% of sales. Hand-dipped ice cream also<br />
available at all units. Unlimited free refills of coffee, tea, or soft drink. Lunch specials priced at $2.29 and $3.99. Check<br />
Averages: $6.73.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
680
Whataburger<br />
Headquarters<br />
P.O. Box 6220, Corpus Christi, Texas 78466-6220 USA<br />
Tel: (361) 878 0650 Fax: (361) 878 0422<br />
www.whataburger.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 693,000 614,000 610,000<br />
Company-owned ($000) 440,000 361,000 360,000<br />
Franchised ($000) 253,000 253,000 250,000<br />
U.S. Number of Units 586 565 570<br />
Company-owned 357 303 300<br />
Franchised 229 262 270<br />
International Sales ($000) 2,000 25,000 25,000<br />
International Units 4 31 31<br />
Average Sales/Unit ($000) 1,330 1,125 1,199<br />
Concept Positioning |<br />
Whataburger, Inc. owns, operates, and franchises others to operate Whataburger Drive-In Restaurants. Units are open for<br />
breakfast, lunch, and dinner, offering drive-in, sit-down, and carryout service. Drive-through windows are being added to older<br />
units at the rate of 12–15 per year. The majority are open 24 hours a day.<br />
Units feature brick and glass and provide seating for 80–150 patrons. Some are located in shopping malls. New and existing<br />
units are adding a blue trim to its orange and white exterior. The company also sells Whataburger t-shirts.<br />
The chain has also installed an interactive computerized network which provides nutritional information to customers. It is<br />
called the Whataburger Information Network (WIN).<br />
Harmon A. Dobson opened the first Whataburger in 1950 in Corpus Christi, TX, and started franchising units in 1953. The<br />
company's original buildings were small, portable, box-like structures that could be moved from site to site if necessary. A<br />
permanent A frame building with an orange-and-white striped roof was designed in 1961, and an enclosed dining room was<br />
added to all units five years later.<br />
<strong>Menu</strong> milestones include the Justaburger in 1973 and Whatacatch in 1979. A management training school opened in 1974.<br />
The Whataburger Learning Center in Houston opened in fall 1987, staffed by volunteers and offers free tutoring in reading and<br />
writing.<br />
<strong>Menu</strong> Positioning |<br />
Features built-to-order hamburgers, fajitas, chicken and fish sandwiches and chicken tenders and salad. Side dishes include<br />
onion rings, fries, hot apple and cherry pies, shakes, malts, soft drinks and coffee. Breakfast offers egg omelet sandwiches,<br />
pancakes, sausage, pecan Danish rolls, coffee, juice and milk. Burgers and soft drinks, though, account for 30–40% of<br />
breakfast sales. <strong>Menu</strong> Prices: 99¢–$3.67. Check Averages: $2.30–$2.50.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
681
Expansion Plans |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Whataburger plans to expand by filling in markets along the interstate highway corridor between Texas and Florida. The<br />
Corpus Christi, TX-based chain’s nearly 600 units are located in eight southern states. (R&I 3/15/03 p31)<br />
Personnel |<br />
Tom Dobson, Chairman<br />
Tim Taft, President<br />
John McLellan, Chief Financial Officer<br />
Rodney Martin, Vice President of Marketing<br />
Whataburger Inc. hired Sandee Pritchard as chief people officer. Previously, Pritchard was vice president of people services<br />
and leadership development for Cinnabon. (NRN Daily NewsFax 12/3/03)<br />
News & Other |<br />
Whataburger inked a 99-unit development deal for 19 Central Florida counties with franchisee FesteCapital Corp. Five units in<br />
Tampa and Orlando are expected to open over the next year. The pact expands on the partnership that was formed in<br />
December when FesteCapital Partnerships agreed to build 28 Whataburger branches in the Jacksonville, FL, area. (NRN<br />
5/26/03 p3; FIR 5/19/03 p6)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
682
White Castle<br />
Headquarters<br />
555 W. Goodale St. P.O. Box 1498, Columbus, Ohio 43216-1498 USA<br />
Tel: (614) 228 5781 Fax: (614) 464 0596<br />
www.whitecastle.com<br />
Ownership: Private<br />
Segment: Limited Service Hamburger<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 489,454 471,632 463,168<br />
Company-owned ($000) 489,454 471,632 463,168<br />
Franchised ($000) - - -<br />
U.S. Number of Units 372 359 347<br />
Company-owned 372 359 347<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 1,355 1,358 1,334<br />
Concept Positioning |<br />
White Castle, a family-owned chain, operates hamburger restaurants offering walk-in, drive-through, sit-down, and carryout<br />
service 24 hours a day. Its signature 2-inch square hamburger patty features five evenly spaced holes that enables even<br />
cooking. Cooking is accomplished by placing the patties on the grill with water and dehydrated onions and then covered with<br />
the bun, so they are steamed rather than broiled or fried.<br />
Most units are freestanding buildings that look like small white castles. Total area varies from 1,500–3,300 sq. ft. Units<br />
currently being built are smaller and feature decorative glass window inserts and blue awnings.<br />
The company is also a franchisee of Church’s Chicken, with 80 locations opened as co-branded White Castle/Church’s sites.<br />
In addition to its restaurants, White Castle owns and operates three bun bakeries and 10 distribution centers in states where<br />
restaurants are located. Other subsidiaries include meat-processing plants in Orleans, and Lebanon, IN, and Zanesville, OH,<br />
as well as PSB Co., a metal fabrication and powder-paint-coating plant located at the home office. There are additional powder<br />
paint coating plants in Dayton, and Rome, GA.<br />
White Castle Distributing produces frozen White Castle hamburgers and cheeseburgers for retail sale from two Kentucky<br />
plants: Louisville and Covington. Expansion of this portion of the business includes sales to vending machines, convenience<br />
stores and club stores.<br />
Billy Ingram and his partner, Walter Anderson, started the business in Wichita, KS, in 1921 on $700 of borrowed money. The<br />
menu has changed little through the decades.<br />
<strong>Menu</strong> Positioning |<br />
Signature item: 2-inch square hamburger—known as "Sliders." Also double hamburger, cheeseburger as well as chicken rings<br />
and breakfast sandwiches. Other menu items include fries, onion rings and chips, cheese sticks, fish sandwiches, soft drinks<br />
and coffee.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
683
Personnel |<br />
Edgar Ingram III, Chairman<br />
William Blake, Chief Financial Officer<br />
Kim Kelly-Bartley, Vice President of Marketing<br />
Jamie Richardson, Vice President of Marketing<br />
News & Other |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Church’s Chicken probably won’t expand its co-branding arrangement with White Castle, according to Frank Belatti, chief<br />
executive of AFC Enterprises, the chicken chain’s parent company. Church’s and White Castle share locations in several<br />
locations, primarily in New York. (RB 4/1/03 p12)<br />
White Castle’s newest restaurant features new drive-thru technology that allows customers and employees to see one another<br />
through a video unit. The Fairfield, OH, store is expected to have fewer than average drive-thru-related errors caused by<br />
miscommunication. (FIR 4/7/04 p4)<br />
White Castle Distributing LLC has added “Chicken Rings” to its line of vending products. The onion ring-shaped product<br />
features breaded chicken rib and breast meat and uses the same proprietary recipe and ingredients as the popular in-store<br />
version. Its other vendible products include Hamburger, Cheeseburger, Jalapeno Cheeseburger, Grilled Chicken Sandwich<br />
and “Early Starts” Western Omelet Sandwich. (VT 8/03 p33)<br />
Chick-fil-A topped QSR’s Drive-Thru Time Study for the second consecutive year. The study focused on 25 restaurant<br />
operators and graded them on speed, order accuracy, menuboard appearance and speaker clarity. Chick-fil-A was followed by<br />
Taco Bell, Wendy’s and Burger King. Not faring particularly well on the survey were Church’s Chicken, Popeyes, Hardee’s and<br />
White Castle. As drive-thru sales approach 60% or more of total unit sales, emphasis on speed and order accuracy is<br />
becoming even more pronounced. Time is increasingly becoming a priority, as the average American worker’s lunch is now 30<br />
minutes. (QSR 10/03 p32)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
684
Wienerschnitzel/O.H.S.<br />
Headquarters<br />
4440 Von Karman Ave., Newport Beach, California 92660 USA<br />
Tel: (949) 851 2657 Fax: (949) 851 2600<br />
Ownership: Private<br />
Segment: Limited Service Other Sandwich<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 225,000 212,000 189,000<br />
Company-owned ($000) - - -<br />
Franchised ($000) 225,000 212,000 189,000<br />
U.S. Number of Units 355 342 334<br />
Company-owned - - -<br />
Franchised 355 342 334<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 642 629 -<br />
Concept Positioning |<br />
The Galardi Group operates two chains of fast food restaurants, Wienerschnitzel and the Original Hamburger Stand.<br />
Wienerschnitzel is the word's largest hot-dog chain. Restaurants offer sit-down, carryout and drive-through service to a primary<br />
customer base between the ages of 18 and 34. Hamburgers generate about 10% of a unit's sales volume; hot dogs account<br />
for about 46%. About 60% of Wienerschnitzel's business is drive-through. Some locations are also open for breakfast.<br />
The prototype building is a trapezoid with seating at booths or tables for 50–80 patrons. A-frame units are approximately 1,500<br />
sq. ft. with patio seating. An "A-3" building is designed to be a contemporary A-frame unit. In-line locations have also been<br />
open.<br />
The Original Hamburger Stand units are very similar to Wienerschnitzel units. There is a prototype trapezoid building (per<br />
Wienerschnitzel's) as well as A-frame locations. The Original Hamburger Stands have evolved from a generic concept (with<br />
black and white markings) to contemporary fast-food locations that emphasize great value.<br />
The company was founded in 1961 as a hot dog chain. Burgers were added to the menu in 1973. The Original Hamburger<br />
Stand opened in Garden Grove, CA, in 1982<br />
<strong>Menu</strong> Positioning |<br />
Wienerschnitzel: features extensive line of hot dogs and sausages including original, Healthy Choice and all-beef lines and<br />
Polish sausage sandwich. Hamburgers and chicken sandwiches also menued. Check Averages: $3–$4. Original Hamburger<br />
Stand: signature item—39¢ hamburgers. Also menued 1/4-lb hamburgers, hot dogs, chicken sandwiches, fries and soft drinks.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
685
<strong>Menu</strong> Development |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Wienerschnitzel is running a “3 for $3” promotion that includes a chili cheese dog, chili cheese fries and a chili cheeseburger<br />
for $3. (NRN Daily NewsFax)<br />
Wienerschnitzel was scheduled to roll out a Southwest Smokey Sausage at 350 franchised units April 1. Priced at $2.99, it is<br />
topped with shredded Cheddar, roasted peppers and onions, mustard and chipotle barbecue sauce. The sandwich will be<br />
available for three months. (NRN Daily NewsFax)<br />
Wienerschnitzel added a low-fat hot dog to its permanent menu. It features a fat content ranging from four grams to 10 grams<br />
per item, depending on toppings. The new hot dog, which was tested years ago, was reintroduced in response to guests’<br />
requests for healthier menu options. Priced $1.39–$1.79, it is available with all of the chain’s typical condiments—mustard,<br />
chili, chili cheese, deluxe, kraut and relish. (NRN Daily NewsFax)<br />
Wienerschnitzel is offering a Cheddar Sausage Melt as a limited-time offer through October. Priced at $2.29, it features melted<br />
Cheddar cheese, fire-roasted peppers and onions on a Cheddar-filled smoked sausage in a soft pretzel bun. (NRN Daily<br />
NewsFax, 8/5/03)<br />
Personnel |<br />
John Galardi, Chairman<br />
Dennis Tase, President<br />
Ken Wagstaff, Chief Financial Officer<br />
Lowry Hughes, Vice President of Operations<br />
Ralph Smolik, Director of Purchasing<br />
Tom Amberger, Director of Marketing<br />
News & Other |<br />
Wienerschnitzel parent the Galardi Group acquired 229-unit Tastee-Freez’s parent for an undisclosed sum. It was acquired<br />
through a newly formed Tastee-Freez LLC subsidiary. Wienerschnitzel, which franchises 342-unit Wienerschnitzel and 24outlet<br />
Original Hamburger, has co-branded with Tastee-Freez since 1999 as a franchisee of the soft-serve ice cream chain. As<br />
of the date of the acquisition, the Tastee-Freez logo and menu were installed at 52 Wienerschnitzels and eight outlets of<br />
Hamburger Stand. Tastee-Freez, which had systemwide sales in 2002 of $115 million, will relocate its headquarters to<br />
Wienerschitzel’s home base of Newport Beach, CA. (NRN 6/16/03 p4)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
686
Wolfgang Puck Fine Dining<br />
Headquarters<br />
100 N. Crescent Dr., Beverly Hills, California 90210 USA<br />
Tel: (310) 432 1500 Fax: (310) 432 1630<br />
www.wolfgangpuck.com<br />
Ownership: Private<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
Wolfgang Puck Cafe<br />
Wolfgang Puck Express<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 110,000 104,000 115,000<br />
Company-owned ($000) 110,000 104,000 115,000<br />
Franchised ($000) - - -<br />
U.S. Number of Units 12 11 12<br />
Company-owned 12 11 12<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 7,000 7,000 7,000<br />
Concept Positioning |<br />
Wolfgang Puck Fine Dining is a group of high-profile, full-service dining concepts within the upscale segment. While its<br />
flagship brand, Spago, is perhaps the most recognizable, other trade names include Granita, Chinois, Postrio and Trattoria del<br />
Lupo.<br />
Spago (Italian slang for string or spaghetti) incorporates American, European and Asian cuisine into a casual chic interior and<br />
is credited with making California cuisine and the exhibition kitchen popular. Units, which average 18,000 sq. ft, have both an<br />
informal grill/cafe area that seats 100 and a more structured dining room with 160 seats. There also is seating for 20 in a bar<br />
area. While some of the same ingredients are used in both sections of the restaurant, menus as well as preparation<br />
techniques differ in each. For example simpler fare, including its signature wood-fired pizzas, and lower prices are offered in<br />
the grill/cafe area.<br />
Postrio specializes in contemporary American cuisine, but with Mediterranean accents. Its units are open for lunch and dinner;<br />
menu offerings change daily.<br />
The company began with the opening in 1982 of the original Spago opened in West Hollywood, CA, under the direction of<br />
Wolfgang Puck and Barbara Lazaroff. Chinois debuted a year later in Santa Monica.<br />
Through the years, Wolfgang Puck not only added to his restaurant holdings but also branded a line of frozen foods and<br />
starred in a nationally televised cooking show on the Food Network. The name Puck is also associated with a group of limitedservice<br />
restaurants called Wolfgang Puck Café, Wolfgang Puck Grand Café and Wolfgang Puck Express. These casual-dining<br />
restaurants are owned and operated by a separate entity, Wolfgang Puck Worldwide, Inc.<br />
In early 2001, Puck formed Wolfgang Puck Worldwide to consolidate various marketing efforts, including those of its fullservice<br />
restaurants. In addition, the retail frozen entrees and pizzas line was sold to ConAgra for an estimated $20 million.<br />
Recently, Puck has added Wolfgang Puck Catering and Events to the company profile. The full-service catering and eventplanning<br />
branch is located in Los Angeles and Chicago and has catered events at the Academy Awards, California Governor’s<br />
Ball and the Chicago Museum of Contemporary Art.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
687
<strong>Menu</strong> Positioning |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Spago—Signature item: wood-fired pizzas. Items change frequently; typical entrees include Grilled white Copper River salmon<br />
with caramelized asparagus and lobster nage; Crispy Mandarin quail with tangerine, pineapple glaze and Asian greens and<br />
Grilled free range chicken with double blanched garlic and Chino vegetables. Appetizers include Crisp potato galette with<br />
smoked sturgeon and freshly grated horseradish; Tuna sashimi with ponzu, wasabi, avocado and sweet red onion and White<br />
Asparagus soup with parmesan crouton and chive oil. Full liquor service available. <strong>Menu</strong> Prices: $13–$32. Check Averages:<br />
Cafe $20–$28.Casual-dining concepts, such as Express and cafes, menu wood-fired pizzas, pastas and sandwiches. <strong>Menu</strong><br />
prices: $4.50–14.95.<br />
<strong>Menu</strong> Development |<br />
Pizza is increasingly showcasing inventive ingredients as an extension of a trend started by California Pizza Kitchen and chef<br />
Wolfgang Puck. While New York was the birthplace of the traditional version, it is also home to a number of “designer” pies. At<br />
Otto Enoteca Pizzeria the paper-thin pies are cooked on a griddle, and flavor varieties include: lardo (house-cured pork fat),<br />
raw fennel and shaved bottarga; whole clams; and Swiss chard and goat cheese. Fred’s specializes in a thin focaccia round<br />
that is spit horizontally and filled with robiola and white truffle oil. Gonzo features free-form pizza prepared on a grill. Toppings<br />
range from watermelon to roast-pumpkin puree with pancetta and caramelized onion. The boat-shaped pizza at Pie by the<br />
Pound is snipped with scissors and sold by the pound. Options include roast potatoes, ricotta, rosemary and walnuts or a BLT<br />
variety. (Bon Appetit, 9/03, p48)<br />
Personnel |<br />
Wolfgang Puck, Chairman<br />
Larry Takahashi, Vice President of Finance<br />
Rob Kautz, Chief Executive Officer<br />
Tom Kaplan, President<br />
Clint Westbrook, Senior Vice President of Operations<br />
Jesse Warnken, Director of Purchasing<br />
News & Other |<br />
LSG Sky Chefs signed an agreement with Wolfgang Puck Worldwide to adapt signature items from Puck’s restaurants for its<br />
In-Flight Café program. The Puck items that Sky Chefs plans to use are Chinois Chicken Salad; honey-smoked turkey on<br />
rosemary focaccia; cinnamon streusel coffeecake muffin; and Malibu macadamia-coconut granola. Sky Chefs’ In-Flight Café is<br />
a concept for airlines that sell meals on flights not offering regular meal service. (NRN 4/21/03 p94)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
688
Yum! Brands, Inc.<br />
Headquarters<br />
1441 Gardiner Lane, Louisville, Kentucky 40213 USA<br />
Tel: (502) 874 8300 Fax: (502) 874 8036<br />
www.yum.com<br />
Ownership: Public<br />
Segment: Multiple Concepts Varied <strong>Menu</strong><br />
<strong>RISE</strong> COMPANY PROFILE<br />
Chain Brands<br />
A&W Restaurants<br />
KFC<br />
Long John Silver's<br />
Pizza Hut<br />
Taco Bell<br />
Yan Can<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 15,145,000 14,600,000 14,500,000<br />
Company-owned ($000) 4,425,000 4,000,000 3,950,000<br />
Franchised ($000) 10,720,000 10,600,000 10,550,000<br />
U.S. Number of Units 21,236 19,562 20,037<br />
Company-owned 5,193 4,284 4,302<br />
Franchised 16,043 15,278 15,735<br />
International Sales ($000) 8,260,000 7,735,000 7,735,000<br />
International Units 11,795 10,927 10,380<br />
Average Sales/Unit ($000) - - -<br />
Concept Positioning |<br />
YUM! Brands, formerly known as Tricon Global, is the second largest chain restaurant company in the U.S. Its three flagship<br />
chain brands, KFC, Pizza Hut and Taco Bell, are all leaders in their operating segments, whether that is in the U.S. or<br />
worldwide. International expansion and operation is overseen by the YUM! Restaurants International division.<br />
Since 1995, YUM! has actively been restructuring its company- and franchised-owned unit count ratios. Initially, its system was<br />
about 47% company-owned. As part of its restructuring, the company has also placed an emphasis on co- and multibranding.<br />
The company has also been co-branding its various chains.<br />
PepsiCo was formed in 1964 through a merger of its soft drink brand and Frito Lay. The company acquired Pizza Hut in 1977<br />
and Taco Bell in 1978. KFC was acquired in 1986. The spin-off of its restaurant holdings into Tricon Global was completed<br />
early October 1997, and the company was renamed YUM! Brands in 2002. In May of 2002, YUM! acquired Yorkshire Global<br />
Restaurants, Inc., parent company and operator of Long John Silver's and A&W All American Food Restaurants.<br />
Franchise Activity |<br />
Pizza Hut parent Yum! Brands agreed to acquire the 89 Pizza Hut units in Michigan owned by LaVan Hawkins’ Wolverine<br />
Pizza LLC. The price was undisclosed. Hawkins had owned 23 Burger Kings in five urban areas until he sold those units back<br />
to Burger King Corp. in January 2001 following lawsuits filed by both entities. (NRN 3/31/03 p64)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
689
International Activities |<br />
<strong>RISE</strong> COMPANY PROFILE<br />
Taco Bell’s initial unit in China is expected to open during the first half of 2003 in Shanghai. Taco Bell parent Yum! Brands<br />
already has considerable experience in the region due to China’s fondness for KFC and the growing popularity of Pizza Hut.<br />
The 35% sales increase that Yum!’s Chinese arm experienced in 2002 reportedly is the fastest growth in the company’s<br />
international business. An official with the National Committee of the Chinese People’s Political Consultative Conference noted<br />
that the popularity of foreign fast food is being fueled by a combination of increased consumer awareness of overseas<br />
products and greater opportunities in the Chinese catering market. (QSR 3/03 p11)<br />
Taco Bell opened its first outlet in China in Shanghai. It features tableservice rather than the usual counter format. Parent<br />
Yum! Brands said it will monitor the unit’s performance to determine its expansion plans for the chain. Taco Bell’s sister chains<br />
KFC and Pizza Hut already have a total of about 8,100 outlets in China. (NRN 6/2/03 p56; FIR 5/26/03 p8)<br />
Yum! Brands reportedly plans to invest almost $50 million in Mexico during the next four years. It expects to add a total of 590<br />
restaurants. (FIR 8/25/03 p4)<br />
Personnel |<br />
Randy Gier, Chief Marketing Officer<br />
Jerry Buss, Chief Operating Officer<br />
David Novak, Chairman<br />
David Deno, Chief Financial Officer<br />
Harvey Brownee, Chief Operating Officer<br />
Rick Trebilcock, Chief Marketing Officer<br />
Rob Savage, Chief Operating Officer<br />
Tony Mastropao, Chief Operating Officer<br />
KFC President Cheryl Bachelder resigned as president. She will be replaced by Gregg Dedrich, president of KFC’s United<br />
States division. (Restaurantbiz.com 9/16/03)<br />
Yum! Brands Inc. promoted Peter A. Bassi to chairman of Yum! Restaurants International. Executive vice president and chief<br />
operating officer Graham Allan will replace Bassi as president of YRI. (NRN Daily NewsFax 11/19/03)<br />
News & Other |<br />
Fast-food chains continue to retool menus to address growing consumer interest in healthier choices. KFC is reportedly testing<br />
roasted, boneless chicken and is said to be testing an unspecified number of products that were described as “better-for-you,”<br />
by David Novak, chairman and chief executive of parent YUM! Brands. A company spokesman also notes that health<br />
conscious-consumers can order a Tender Roast chicken sandwich without the sauce, corn without butter and barbecue beans<br />
for a meal that has less than 10 grams of fat. (Nation’s Restaurant News)<br />
Yum! Brands reported sales in 2002 at U.S. outlets rose 9% to $14.6 billion on a 1% blended same-store sales increase as<br />
annual domestic revenues increased 11% to $5.4 billion. International openings for 2002 hit a record 1,051 units and<br />
international operating profit for the year grew 17% to $121 million. Yum! will give Pizza Hut a 4% boost in its marketing<br />
budget for 2003 to $300 million and its KFC and Taco Bell brands will receive 3% increases in their annual marketing budgets,<br />
to $200 million each. (NRN 2/24/03 p4)<br />
Martin Yan’s SensAsian will be opened by Martin Yan. After working with Yum! Brands to develop the Yan Can quick-casual<br />
chain concept, Yan decided he wanted to have a restaurant of his own. Yum! is not among the partners backing SensAsian<br />
and Yan does not expect it to become a chain. (R&I 2/15/03 p23)<br />
Yum! Brands acquired rights to the Pasta Bravo restaurant concept for $5 million from Pasta Bravo Inc. of Aliso Viejo, CA. The<br />
deal includes the quick-casual recipes, cooking platform and trademarks but none of the 15-unit chain’s physical assets. Pasta<br />
Bravo’s menu features made-to-order pastas, pizzas, pasta salads and salads—all prepared in display kitchens. In late 2002,<br />
Yum! began testing co-branding Pizza Hut with Pasta Bravo. As a Yum! Brand, it will be managed by that company’s<br />
multibranding team, which is led by group president Aylwin Lewis. (NDNF 4/7/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
690
<strong>RISE</strong> COMPANY PROFILE<br />
Back Yard Burgers’ co-branding has worked better with Taco Bell than with Pizza Hut in the chain’s first five co-branded<br />
restaurants. Thus far, three Taco Bell pairings have been opened—two in Louisville and one in St. Louis—and two Pizza Hut<br />
units in the small Tennessee towns of Fayetteville and Portland. The Pizza Hut pairing has not worked well, the two brands<br />
have agreed, with differences in preparation and cooking times presenting major hurdles. The burger brand will be removed<br />
from the two Pizza Huts later this year. Although specific results are not being revealed, the Back Yard pairings with Taco Bell<br />
have been successful, with five more co-branded sites in the works, two to be in the St. Louis area and three in Ft. Wayne, IN.<br />
No other Yum! Brands concepts are being considered for co-branding with the burger concept for the short term. Back Yard’s<br />
agreement with Yum! grants the option to co-brand up to 500 more of the burger outlets. (RB 5/1/03 p46<br />
Taco Bell has been ordered to pay $30.1 million to two men who claim their idea for a talking Chihuahua character was<br />
misappropriated by the Yum! Brands-owned company. A U.S. district court jury in Grand Rapids, MI, ordered the chain to pay<br />
Joseph Shields and Thomas Rinks, who claim that Taco Bell used their talking-dog character after breaking off negotiations<br />
with them. The payment was based on a percentage of the estimated $500 million that was spent on the ad campaign, which<br />
was used from 1997 to 2000. Yum! said it plans to take a special charge of 6¢ per share, excluding interest, in the second<br />
quarter (ended June 16) to pay for the litigation. It plans to appeal the decision, stating its belief that the Chihuahua character<br />
was created by the Chiat Day advertising agency and not the plaintiffs. If its appeal is unsuccessful, the company would seek<br />
reimbursement from its insurance carriers and Taco Bell’s former advertising agency. (NDNF 6/5/03)<br />
Yum! Brands Inc. reported domestic same-store sales for the four weeks ended September 6 at company-owned restaurants<br />
were flat compared to year-ago results. Same-store sales rose 2% at Taco Bell and 4% at Pizza Hut but fell 6% at KFC.<br />
Foreign systemwide sales increased 7% on a local-currency basis for the period. (NRN Daily NewsFax 09/12/03)<br />
KFC is no longer the target of a PETA lawsuit but the animal rights group will continue to challenge some of the chain’s<br />
practices. People for the Ethical Treatment of Animals dropped its lawsuit against the company and its parent Yum! Brands but<br />
the group plans to continue its anti-KFC campaign with a “world week of action” September 28 through October 4. PETA said<br />
that week will feature demonstrations at KFC outlets in all 50 states and in dozens of other countries. PETA goals include<br />
pressuring KFC to require suppliers to replace electric stunning and throat slitting with gas slaughter methods. KFC adopted<br />
animal welfare guidelines in May but PETA said they were inadequate. PETA said it dropped the lawsuit because KFC had<br />
removed certain statements on its Web site related to poultry rearing as well as a claim that the chain does not allow suppliers<br />
to use growth-promoting substances. (NDNF 9/3/03)<br />
Taco Bell parent Yum! Brands must pay an additional $11.8 million in interest to the creators of a talking-Chihuahua character<br />
that previously was used in the Mexican chain’s commercials, according to a federal judge’s new ruling. A jury awarded $30.1<br />
million to Joseph Shields and Thomas Rinks of Michigan for breach of contract in June. Together, the two judgments total<br />
almost $42 million. Yum! reportedly anticipated interest costs in its $35 million second-quarter charge although the company<br />
plans to appeal the court ruling. (NDNF 9/12/03)<br />
Yum! Brands for the four weeks ended September 6, reported domestic same-store sales increased 2% at Taco Bell and 4%<br />
at Pizza Hut but decreased 6% at KFC. International system sales were 7% higher during the period. (Nation’s Restaurant<br />
News 9/22/03 p18)<br />
Yum! Brands Inc for the third quarter ended September 6, reported net income increased to $164 million from $147 million for<br />
the same quarter a year ago. Total revenues increased 1% and international revenues increased 10%. Same-store sales<br />
increased 1% for the four-week period ended October 4. (NRN Daily NewsFax 10/8/03)<br />
Yum! Brands announced that Gregg Dedrick was named president of KFC, replacing Cheryl Bachelder. He most recently<br />
served as executive vice president of human resources for Yum! and previously was KFC’s chief people officer. The following<br />
day, KFC awarded its estimated $200 million advertising account to Foote Cone & Belding of Chicago, which is part of<br />
Interpublic Group of Cos. The agency’s San Francisco office handles advertising for Yum! Brands’ Taco Bell. (NRN 9/22/03 p2<br />
& 9/29/03 p14; RB 10/1/03 p12)<br />
Yum! Brands is accelerating its multi-brand strategy. The company is encouraging existing stores to add a second brand to<br />
their locations. The costs associated with such a move range from $150,000–$300,000, though the addition usually generates<br />
$200,000–$300,000 annually in sales. Yum!, which owns Taco Bell, KFC, Pizza Hut and A&W, also noted that multi-branded<br />
sites often have a more “contemporary” feel, with high ceilings, curved design elements and a variety of seating options from<br />
high tops to booths to tables. (NRN 10/20/03 p74)<br />
Yum! Brands for the four weeks ended November 29, reported that blended domestic same-store sales increased 2%. (NRN<br />
Daily NewsFax 12/8/03)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
691
<strong>RISE</strong> COMPANY PROFILE<br />
Yum! Brands Inc. for the four weeks ended December 27, reported that systemwide same-store sales rose 2%. (NRN Daily<br />
NewsFax 1/7/04)<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
692
Zio's Italian Kitchen<br />
Headquarters<br />
4441 S. 72 East Ave., Tulsa, Oklahoma 74145-4692 USA<br />
Tel: (918) 641 1248 Fax: (918) 641 1236<br />
www.zios.com<br />
Ownership: Private<br />
Segment: Full Service Italian<br />
<strong>RISE</strong> COMPANY PROFILE<br />
System Characteristics 2002 2001 2000<br />
U.S. Systemwide Sales ($000) 53,157 57,263 50,822<br />
Company-owned ($000) 53,157 57,263 50,822<br />
Franchised ($000) - - -<br />
U.S. Number of Units 17 17 18<br />
Company-owned 17 17 18<br />
Franchised - - -<br />
International Sales ($000) - - -<br />
International Units - - -<br />
Average Sales/Unit ($000) 3,127 3,368 2,823<br />
Concept Positioning |<br />
Zio’s Italian Kitchen specializes in made-from-scratch Italian food at reasonable prices. The concept offers large portions of the<br />
finest quality made-from-scratch food in a comfortable environment. The casual-dining concept owned by Mazzio’s Corp.<br />
features wood-fired brick oven pizzas prepared in specially constructed brick ovens weighing over 14,000 pounds. Service is a<br />
strong focus for the chain, and servers are generally assigned only a very small number of stations so that they can be<br />
attentive to their tables.<br />
Units average 7,400 sq. ft. and provide seating for approximately 240 guests. Modeled after an Italian villa, they feature a<br />
peasant decor and are designed for comfort. The goal is to provide a place suitable for parties and informal get-togethers as<br />
well as family dinners. Kitchens are open so customers can view preparation of pizzas in brick ovens and the sautéing of<br />
pastas and numerous specialty items.<br />
The first Zio’s Italian Kitchen was opened in Tulsa in 1994. Key management includes Jeanine Fisher, head of operations.<br />
<strong>Menu</strong> Positioning |<br />
Signature items: Wood-fired brick oven pizzas in 2 varieties: House Favorites, with “homemade” tomato sauce and Fancy,<br />
without tomato sauce. Selections include Chicken Club, Mexican, Seafood Alfredo, Margherita and Vegetarian. Chicken and<br />
shrimp entrees include Shrimp Limone—shrimp, artichoke hearts, mushrooms, tomatoes in lemon cream sauce served over<br />
angel hair pasta and Chicken Pomodoro—grilled chicken, garlic, red peppers, basil sautéed in olive oil and tossed with<br />
tomatoes, parmesan and linguine. Also menus appetizers such as toasted ravioli and fried calamari, salads including Caesar,<br />
house Italian and chicken, spaghetti and pastas served with crusty Italian bread and Italian-style sandwiches. Desserts include<br />
bread pudding, cheesecake and tiramisu. <strong>Menu</strong> Prices: $3.95–$8.95. Check Averages: $8.75.<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
693
Full Service All Other menu<br />
Bahama Breeze ........................................................... 34<br />
Famous Dave's .......................................................... 242<br />
Smokey Bones BBQ .................................................. 592<br />
Sonny's Real Pit BBQ ................................................ 600<br />
Full Service Asian<br />
Benihana...................................................................... 46<br />
Big Bowl....................................................................... 55<br />
P.F. Chang's China Bistro.......................................... 466<br />
Full Service Family Steak<br />
Bugaboo Creek Steak House ...................................... 89<br />
Montana Mike's Steakhouse...................................... 430<br />
WesterN SizzliN......................................................... 677<br />
Full Service Family Style<br />
Bakers Square ............................................................. 40<br />
Big Boy ........................................................................ 57<br />
Bob Evans ................................................................... 64<br />
Carrows ..................................................................... 120<br />
Coco's Bakery Restaurant ......................................... 171<br />
Country Kitchen ......................................................... 180<br />
Cracker Barrel Old Country Store .............................. 186<br />
Denny's...................................................................... 213<br />
Eat 'n Park ................................................................. 232<br />
Friendly's.................................................................... 251<br />
Huddle House ............................................................ 312<br />
International House of Pancakes ............................... 323<br />
Shari's Restaurants.................................................... 585<br />
Shoney's .................................................................... 587<br />
Village Inn .................................................................. 667<br />
Waffle House ............................................................. 671<br />
Western Steer............................................................ 679<br />
Full Service Italian<br />
Bertolini's Authentic Trattoria ....................................... 52<br />
Bertucci's ..................................................................... 53<br />
Buca di Beppo ............................................................. 84<br />
Carrabba's Italian Grill ............................................... 117<br />
Cucina! Cucina! Italian Cafe ...................................... 189<br />
Il Fornaio.................................................................... 317<br />
Johnny Carino's Country Italian ................................. 342<br />
Appendix A<br />
<strong>Menu</strong> Classification<br />
LaRosa's Pizzerias .................................................... 376<br />
Maggiano's................................................................. 398<br />
Old Spaghetti Factory, The ........................................ 452<br />
Olive Garden, The...................................................... 453<br />
Pepperoni Grill/Others ............................................... 494<br />
Pizzeria Uno Chicago Bar & Grill ............................... 511<br />
Romano's Macaroni Grill............................................ 555<br />
Spaghetti Warehouse, The ........................................ 606<br />
Vinny T's of Boston .................................................... 669<br />
Zio's Italian Kitchen.................................................... 693<br />
Full Service Mexican<br />
Acapulco Restaurants.................................................... 6<br />
Chevys Fresh Mex..................................................... 139<br />
Chi-Chi's .................................................................... 143<br />
Cozymel's .................................................................. 183<br />
Don Pablo's................................................................ 221<br />
El Chico ..................................................................... 236<br />
El Torito ..................................................................... 240<br />
Garcia's Mexican Restaurants ................................... 262<br />
On the Border ............................................................ 456<br />
Rio Bravo Fresh Mex ................................................. 546<br />
Tia's Tex-Mex ............................................................ 652<br />
Tumbleweed Grill & Bar ............................................. 663<br />
Full Service Other Sandwich<br />
Johnny Rockets ......................................................... 344<br />
Full Service Other Steak<br />
Capital Grille, The ...................................................... 104<br />
Charlie Brown's Steakhouses .................................... 128<br />
Hungry Hunters/Mountain Jacks/Carvers .................. 316<br />
Logan's Roadhouse ................................................... 388<br />
Lone Star Steakhouse and Saloon ............................ 390<br />
Longhorn Steakhouse................................................ 394<br />
Office Beer Bar & Grill, The ....................................... 447<br />
Original Roadhouse Grill............................................ 462<br />
Outback Steakhouse.................................................. 463<br />
Roadhouse Grill ......................................................... 548<br />
Sagebrush Steakhouse & Saloon .............................. 572<br />
Saltgrass Steak House .............................................. 573<br />
Steak and Ale ............................................................ 619<br />
Stuart Anderson's ...................................................... 623<br />
Texas Roadhouse...................................................... 649<br />
Texas Steakhouse & Saloon...................................... 651<br />
Timber Lodge Steakhouse......................................... 656<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
1
Full Service Seafood<br />
Bubba Gump Shrimp ....................................................82<br />
Chart House ...............................................................130<br />
Crab House/Capt. Crab's Take-Away.........................185<br />
Joe's Crab Shack........................................................340<br />
Landry's Seafood........................................................374<br />
Legal Sea Foods ........................................................380<br />
McCormick & Schmick's .............................................407<br />
Muer Seafood Restaurants.........................................438<br />
Red Lobster ................................................................536<br />
Full Service Steak - Fine Dining<br />
Del Frisco's/Sullivan's .................................................209<br />
Morton's of Chicago....................................................431<br />
Palm Restaurants .......................................................470<br />
Ruth's Chris Steak House...........................................568<br />
Full Service Varied <strong>Menu</strong><br />
99 Restaurant & Pubs.....................................................1<br />
Ale House .......................................................................8<br />
American Cafe................................................................9<br />
Applebee's Neighborhood Grill & Bar ...........................10<br />
Ark Restaurants............................................................18<br />
Bennigan's....................................................................48<br />
Black-eyed Pea ............................................................59<br />
Buffalo Wild Wings Grill & Bar ......................................87<br />
California Pizza Kitchen................................................99<br />
Canyon Cafes.............................................................103<br />
Champps Entertainment, Inc. .....................................125<br />
Cheddar's Casual Cafe...............................................134<br />
Cheesecake Factory, The...........................................135<br />
Chili's Grill & Bar.........................................................148<br />
Claim Jumper .............................................................169<br />
Damon's Grill ..............................................................199<br />
Dave & Buster's ..........................................................205<br />
Fox & Hound English Pub & Grille..............................247<br />
Fuzio Universal Pasta/Other Concepts.......................261<br />
Garfield's Restaurant & Pub .......................................264<br />
Good Eats...................................................................270<br />
Gordon Biersch/Big River Breweries ..........................271<br />
Grady's American Grill................................................273<br />
Ground Round ............................................................281<br />
Gumbo's Louisiana Style Cafe....................................283<br />
Hamburger Hamlet .....................................................286<br />
Hard Rock Cafe ..........................................................288<br />
Hooters .......................................................................297<br />
Hops Grillhouse & Brewery.........................................299<br />
Houlihan's...................................................................302<br />
House of Blues ...........................................................306<br />
Houston's....................................................................308<br />
Houston's Specialty Restaurants ................................310<br />
Islands Restaurants....................................................327<br />
J. Alexander's .............................................................328<br />
Jillian's Billiard Club & Cafe ........................................339<br />
Max & Erma's .............................................................401<br />
Mimi's Cafes ...............................................................428<br />
National Sports Grill....................................................441<br />
O'Charley's .................................................................444<br />
Old Chicago Restaurants............................................448<br />
Original Pancake House .............................................461<br />
Perkins Restaurants & Bakery....................................496<br />
Rainforest Cafe...........................................................531<br />
Red Robin...................................................................541<br />
Rock Bottom Brewery .................................................550<br />
Rockfish Seafood Grill ................................................553<br />
Roy’s Restaurants ......................................................560<br />
Ruby Tuesday ............................................................564<br />
T.G.I. Friday's .............................................................632<br />
Tony Roma's...............................................................661<br />
Limited Service All Other menu<br />
Bruegger's Bagel Bakery ..............................................80<br />
Caribou Coffee ...........................................................109<br />
Chesapeake Bagel Bakery .........................................138<br />
Cinnabon ....................................................................165<br />
Diedrich/Gloria Jean's Coffee .....................................216<br />
Einstein Bros. Bagels..................................................233<br />
Great American Cookies.............................................276<br />
Hot Sam......................................................................301<br />
Jamba Juice ...............................................................334<br />
KarmelKorn.................................................................348<br />
la Madeleine ...............................................................368<br />
Mrs. Fields ..................................................................435<br />
Orange Julius of America ...........................................458<br />
Original Cookie Co., The ............................................460<br />
Pretzel Maker .............................................................523<br />
Pretzel Time ...............................................................524<br />
Seattle's Best Coffee ..................................................583<br />
Smoothie King ............................................................595<br />
Starbucks....................................................................610<br />
Limited Service Asian<br />
Hibachi San ................................................................295<br />
Panda Express ...........................................................472<br />
Panda Inn ...................................................................474<br />
Pei Wei Asian Diner....................................................492<br />
Pick Up Stix ................................................................502<br />
Limited Service Cafeteria Buffet<br />
Furr's/Bishop's Cafeterias...........................................259<br />
K&W Cafeterias ..........................................................346<br />
Luby's .........................................................................396<br />
Old Country Buffet/HomeTown Buffet.........................450<br />
Souper Salad..............................................................602<br />
Souplantation/Sweet Tomatoes..................................604<br />
Limited Service Chicken<br />
Bojangles' Famous Chicken 'N Biscuits........................69<br />
Boston Market ..............................................................71<br />
Chick-fil-A ...................................................................145<br />
Church's Chicken........................................................159<br />
El Pollo Loco...............................................................238<br />
Grandy's .....................................................................274<br />
Kenny Rogers Roasters..............................................349<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
2
KFC............................................................................ 351<br />
Koo Koo Roo ............................................................. 358<br />
Lee's Famous Recipe ................................................ 378<br />
Mrs. Winner's Chicken & Biscuits .............................. 436<br />
Pollo Tropical ............................................................. 513<br />
Popeyes Chicken & Biscuits ...................................... 517<br />
Limited Service Donut<br />
Daylight Donut Shops ................................................ 208<br />
Dunkin' Donuts........................................................... 227<br />
Krispy Kreme ............................................................. 360<br />
Tim Hortons ............................................................... 654<br />
Limited Service Family Steak<br />
Coyote Canyon .......................................................... 182<br />
Golden Corral ............................................................ 268<br />
Ponderosa/Bonanza .................................................. 515<br />
Ryan's Family Steak House....................................... 570<br />
Sirloin Stockade......................................................... 589<br />
Limited Service Family Style<br />
Pat & Oscar's............................................................. 488<br />
Limited Service Hamburger<br />
A&W Restaurants .......................................................... 4<br />
Back Yard Burgers....................................................... 32<br />
Burger King.................................................................. 91<br />
Carl's Jr...................................................................... 111<br />
Checkers Drive-In Restaurants.................................. 132<br />
CKE Restaurants, Inc. ............................................... 167<br />
Culver's Frozen Custard and ButterBurgers®............ 191<br />
Fuddruckers............................................................... 256<br />
Hardee's .................................................................... 291<br />
In-N-Out Burger ......................................................... 319<br />
Jack in the Box .......................................................... 330<br />
Krystal Company ....................................................... 366<br />
McDonald's ................................................................ 410<br />
Rally's Restaurants .................................................... 533<br />
Sonic Drive-Ins .......................................................... 597<br />
Wendy's Old Fashioned Hamburgers ........................ 672<br />
Whataburger .............................................................. 681<br />
White Castle .............................................................. 683<br />
Limited Service Ice/Yogurt<br />
Baskin-Robbins............................................................ 43<br />
Braum's Ice Cream & Dairy Stores .............................. 75<br />
Carvel Ice Cream Bakery........................................... 122<br />
Dairy Queen/ Brazier ................................................. 196<br />
Freshen's Premium Yogurt & Ice Cream ................... 249<br />
Haagen-Dazs............................................................. 284<br />
Tastee Freez.............................................................. 645<br />
TCBY Treats .............................................................. 647<br />
Limited Service Italian<br />
Cucina! Cucina! Presto .............................................. 190<br />
Fazoli's....................................................................... 245<br />
Limited Service Mexican<br />
Baja Fresh Mexican Grill.............................................. 36<br />
Chipotle...................................................................... 152<br />
Del Taco .................................................................... 211<br />
Green Burrito ............................................................. 279<br />
La Salsa Fresh Mexican Grill ..................................... 370<br />
Rubio's Baja Grill ....................................................... 562<br />
Taco Bell.................................................................... 637<br />
Taco Bueno ............................................................... 641<br />
Taco John's................................................................ 643<br />
Limited Service Other Sandwich<br />
Arby's........................................................................... 14<br />
Au Bon Pain................................................................. 23<br />
Blimpie Subs & Salads................................................. 61<br />
Corner Bakery............................................................ 175<br />
Cosi............................................................................ 177<br />
D'Angelo Sandwich Shops......................................... 194<br />
Great Steak & Potato Co., The .................................. 277<br />
Jason's Deli................................................................ 336<br />
Jersey Mike's Subs .................................................... 338<br />
McAlister's Deli .......................................................... 405<br />
Miami Subs Grill......................................................... 426<br />
Nathan's Famous....................................................... 439<br />
Panera Bread/Saint Louis Bread Co.......................... 475<br />
Quiznos Subs ............................................................ 527<br />
Schlotzsky's Deli ........................................................ 579<br />
Steak Escape............................................................. 621<br />
Subway ...................................................................... 625<br />
Togo's Eatery............................................................. 658<br />
Wienerschnitzel/O.H.S............................................... 685<br />
Limited Service Pizza<br />
Chuck E. Cheese's .................................................... 157<br />
CiCi's Pizza................................................................ 163<br />
Domino's Pizza .......................................................... 218<br />
Donatos Pizza............................................................ 224<br />
Fox's Pizza Den ......................................................... 248<br />
Godfather's Pizza....................................................... 266<br />
Hungry Howie's Pizza & Subs.................................... 314<br />
Little Caesars............................................................. 386<br />
Mazzio's Pizza ........................................................... 404<br />
Mr. Gatti's................................................................... 433<br />
Noble Roman's .......................................................... 442<br />
Papa Gino's ............................................................... 481<br />
Papa John's ............................................................... 483<br />
Peter Piper Pizza ....................................................... 498<br />
Piccadilly Circus Pizza............................................... 500<br />
Pizza Hut ................................................................... 505<br />
Pizza Inn .................................................................... 509<br />
Round Table Pizza .................................................... 558<br />
Sbarro ........................................................................ 575<br />
Villa Pizza & Cozzoli's Pizza...................................... 665<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
3
Limited Service Seafood<br />
Captain D's .................................................................106<br />
Long John Silver's ......................................................392<br />
Limited Service Varied <strong>Menu</strong><br />
Atlanta Bread Company................................................20<br />
Auntie Anne's................................................................26<br />
Multiple Concepts Chicken<br />
Harman Management Corp. .......................................294<br />
Multiple Concepts Family Style<br />
Frisch's Restaurants, Inc. ...........................................254<br />
Multiple Concepts Mexican<br />
Mexican Restaurants..................................................424<br />
Multiple Concepts Steak - Fine Dining<br />
Smith & Wollensky......................................................590<br />
Multiple Concepts Varied <strong>Menu</strong><br />
Avado Brands, Inc. .......................................................28<br />
Back Bay Restaurants ..................................................30<br />
Boddie-Noell Enterprises, Inc. ......................................67<br />
Brinker International......................................................77<br />
Carlson - Emerging Brands Div. .................................114<br />
Carlson Restaurants Worldwide .................................115<br />
Carrols Corp. ..............................................................119<br />
Consolidated Restaurant Operations..........................173<br />
Darden Restaurants, Inc.............................................201<br />
Houlihan’s Restaurant Group .....................................304<br />
International Dairy Queen, Inc. ...................................321<br />
Kimpton Individual Restaurants ..................................356<br />
Landry's Restaurants, Inc. ..........................................372<br />
Lettuce Entertain You Restaurants.............................383<br />
Metromedia Restaurant Group ...................................422<br />
Pappas Restaurants ...................................................486<br />
Patina Restaurant.......................................................490<br />
Prandium, Inc. ............................................................521<br />
Quality Dining, Inc.......................................................525<br />
Rare Hospitality International, Inc...............................534<br />
Restaurants Unlimited ................................................544<br />
Sbarro Specialty Concepts .........................................577<br />
Specialty Restaurants Dinnerhouses..........................608<br />
Spectrum Foods .........................................................609<br />
T S Restaurants..........................................................631<br />
Wolfgang Puck Fine Dining ........................................687<br />
Yum! Brands, Inc. .......................................................689<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
4
AFC Enterprises<br />
Church's Chicken....................................................... 159<br />
Cinnabon ................................................................... 165<br />
Popeyes Chicken & Biscuits ...................................... 517<br />
Seattle's Best Coffee ................................................. 583<br />
Acapulco Restaurants<br />
Acapulco Restaurants.................................................... 6<br />
Ale House<br />
Ale House ...................................................................... 8<br />
Allied Domecq<br />
Baskin-Robbins............................................................ 43<br />
Dunkin' Donuts........................................................... 227<br />
Togo's Eatery............................................................. 658<br />
Applebee's Neighborhood Grill & Bar<br />
Applebee's Neighborhood Grill & Bar .......................... 10<br />
Arby's<br />
Arby's........................................................................... 14<br />
Ark Restaurants<br />
Ark Restaurants ........................................................... 18<br />
Atlanta Bread Company<br />
Atlanta Bread Company............................................... 20<br />
Auntie Anne's<br />
Auntie Anne's............................................................... 26<br />
Appendix B<br />
Company Index<br />
Avado Brands, Inc.<br />
Avado Brands, Inc........................................................ 28<br />
Don Pablo's................................................................ 221<br />
Hops Grillhouse & Brewery........................................ 299<br />
Back Bay Restaurants<br />
Back Bay Restaurants ................................................. 30<br />
Back Yard Burgers<br />
Back Yard Burgers....................................................... 32<br />
Bakers Square<br />
Bakers Square ............................................................. 40<br />
Benihana<br />
Benihana...................................................................... 46<br />
Bertucci's<br />
Bertucci's ..................................................................... 53<br />
Big Boy<br />
Big Boy ........................................................................ 57<br />
Black-eyed Pea<br />
Black-eyed Pea............................................................ 59<br />
Blimpie Subs & Salads<br />
Blimpie Subs & Salads................................................. 61<br />
Bob Evans<br />
Bob Evans ................................................................... 64<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
1
Boddie-Noell Enterprises, Inc.<br />
Boddie-Noell Enterprises, Inc. ......................................67<br />
Texas Steakhouse & Saloon ......................................651<br />
Bojangles' Famous Chicken 'N Biscuits<br />
Bojangles' Famous Chicken 'N Biscuits........................69<br />
Braum's Ice Cream & Dairy Stores<br />
Braum's Ice Cream & Dairy Stores ...............................75<br />
Brinker International<br />
Big Bowl........................................................................55<br />
Brinker International......................................................77<br />
Chili's Grill & Bar.........................................................148<br />
Corner Bakery ............................................................175<br />
Cozymel's ...................................................................183<br />
Maggiano's .................................................................398<br />
On the Border .............................................................456<br />
Rockfish Seafood Grill ................................................553<br />
Romano's Macaroni Grill ............................................555<br />
Bruegger's Bagel Bakery<br />
Bruegger's Bagel Bakery ..............................................80<br />
Bubba Gump Shrimp<br />
Bubba Gump Shrimp ....................................................82<br />
Buca di Beppo<br />
Buca di Beppo ..............................................................84<br />
Vinny T's of Boston.....................................................669<br />
Buffalo Wild Wings Grill & Bar<br />
Buffalo Wild Wings Grill & Bar ......................................87<br />
Buffets, Inc.<br />
Old Country Buffet/HomeTown Buffet.........................450<br />
Burger King<br />
Burger King...................................................................91<br />
CKE Restaurants, Inc.<br />
Carl's Jr.......................................................................111<br />
CKE Restaurants, Inc. ................................................167<br />
Green Burrito ..............................................................279<br />
Hardee's .....................................................................291<br />
La Salsa Fresh Mexican Grill......................................370<br />
Timber Lodge Steakhouse..........................................656<br />
CRG LLC Holding Corp.<br />
Sagebrush Steakhouse & Saloon...............................572<br />
Western Steer.............................................................679<br />
California Pizza Kitchen<br />
California Pizza Kitchen................................................99<br />
Canyon Cafes<br />
Canyon Cafes.............................................................103<br />
Caribou Coffee<br />
Caribou Coffee ...........................................................109<br />
Carlson Restaurants Worldwide<br />
Carlson - Emerging Brands Div. .................................114<br />
Carlson Restaurants Worldwide .................................115<br />
Pick Up Stix ................................................................502<br />
T.G.I. Friday's .............................................................632<br />
Carrols Corp.<br />
Carrols Corp. ..............................................................119<br />
Pollo Tropical..............................................................513<br />
Carrows<br />
Carrows ......................................................................120<br />
Carvel Ice Cream Bakery<br />
Carvel Ice Cream Bakery............................................122<br />
Castle Harlan Partners III<br />
Charlie Brown's Steakhouses.....................................128<br />
Morton's of Chicago....................................................431<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
2
Champps Entertainment, Inc.<br />
Champps Entertainment, Inc. .................................... 125<br />
Charlie Brown's Acquisition Corp.<br />
Office Beer Bar & Grill, The ....................................... 447<br />
Checkers Drive-In Restaurants, Inc.<br />
Checkers Drive-In Restaurants.................................. 132<br />
Rally's Restaurants .................................................... 533<br />
Cheddar's Casual Cafe<br />
Cheddar's Casual Cafe.............................................. 134<br />
Cheesecake Factory, The<br />
Cheesecake Factory, The.......................................... 135<br />
Chevys Fresh Mex<br />
Chevys Fresh Mex..................................................... 139<br />
Chick-fil-A<br />
Chick-fil-A .................................................................. 145<br />
Chuck E. Cheese's<br />
Chuck E. Cheese's .................................................... 157<br />
CiCi's Pizza<br />
CiCi's Pizza................................................................ 163<br />
Claim Jumper<br />
Claim Jumper............................................................. 169<br />
Coco's Bakery Restaurant<br />
Coco's Bakery Restaurant ......................................... 171<br />
Compass Group PLC<br />
Au Bon Pain................................................................. 23<br />
Patina Restaurant ...................................................... 490<br />
Consolidated Restaurant Operations<br />
Consolidated Restaurant Operations......................... 173<br />
El Chico ..................................................................... 236<br />
Good Eats.................................................................. 270<br />
Spaghetti Warehouse, The ........................................ 606<br />
Cosi<br />
Cosi............................................................................ 177<br />
Country Kitchen<br />
Country Kitchen ......................................................... 180<br />
Cracker Barrel Old Country Store<br />
Cracker Barrel Old Country Store .............................. 186<br />
Cucina! Cucina! Inc.<br />
Cucina! Cucina! Italian Cafe ...................................... 189<br />
Cucina! Cucina! Presto .............................................. 190<br />
Culver's Frozen Custard and<br />
ButterBurgers®<br />
Culver's Frozen Custard and ButterBurgers®............ 191<br />
Damon's Grill<br />
Damon's Grill ............................................................. 199<br />
Darden Restaurants, Inc.<br />
Bahama Breeze ........................................................... 34<br />
Darden Restaurants, Inc. ........................................... 201<br />
Olive Garden, The...................................................... 453<br />
Red Lobster ............................................................... 536<br />
Smokey Bones BBQ .................................................. 592<br />
Dave & Buster's<br />
Dave & Buster's ......................................................... 205<br />
Daylight Donut Shops<br />
Daylight Donut Shops ................................................ 208<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
3
Del Taco<br />
Del Taco .....................................................................211<br />
Denny's Corp.<br />
Denny's.......................................................................213<br />
Diedrich/Gloria Jean's Coffee<br />
Diedrich/Gloria Jean's Coffee .....................................216<br />
Domino's Pizza<br />
Domino's Pizza ...........................................................218<br />
Eat 'n Park<br />
Eat 'n Park ..................................................................232<br />
Eateries, Inc.<br />
Garcia's Mexican Restaurants ....................................262<br />
Garfield's Restaurant & Pub .......................................264<br />
Pepperoni Grill/Others ................................................494<br />
El Pollo Loco<br />
El Pollo Loco...............................................................238<br />
El Torito<br />
El Torito ......................................................................240<br />
Famous Dave's<br />
Famous Dave's...........................................................242<br />
Fazoli's<br />
Fazoli's .......................................................................245<br />
Fired Up Inc.<br />
Gumbo's Louisiana Style Cafe....................................283<br />
Johnny Carino's Country Italian ..................................342<br />
Fox's Pizza Den<br />
Fox's Pizza Den..........................................................248<br />
Freshen's Premium Yogurt & Ice<br />
Cream<br />
Freshen's Premium Yogurt & Ice Cream ....................249<br />
Friendly's<br />
Friendly's ....................................................................251<br />
Frisch's Restaurants, Inc.<br />
Frisch's Restaurants, Inc. ...........................................254<br />
Fuddruckers<br />
Fuddruckers................................................................256<br />
Furr's/Bishop's Cafeterias<br />
Furr's/Bishop's Cafeterias...........................................259<br />
Fuzio Universal Pasta/Other Concepts<br />
Fuzio Universal Pasta/Other Concepts.......................261<br />
Godfather's Pizza<br />
Godfather's Pizza .......................................................266<br />
Golden Corral<br />
Golden Corral .............................................................268<br />
Gordon Biersch/Big River Breweries<br />
Gordon Biersch/Big River Breweries ..........................271<br />
Great Steak & Potato Co., The<br />
Great Steak & Potato Co., The ...................................277<br />
Ground Round<br />
Ground Round ............................................................281<br />
HOB Entertainment, Inc.<br />
House of Blues ...........................................................306<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
4
Haagen-Dazs<br />
Haagen-Dazs............................................................. 284<br />
Hard Rock Cafe<br />
Hard Rock Cafe ......................................................... 288<br />
Harman Management Corp.<br />
Harman Management Corp. ...................................... 294<br />
Hooters<br />
Hooters ...................................................................... 297<br />
Houlihan's<br />
Houlihan's .................................................................. 302<br />
Houlihan’s Restaurant Group<br />
Houlihan’s Restaurant Group..................................... 304<br />
Houston's Restaurants, Inc.<br />
Houston's................................................................... 308<br />
Houston's Specialty Restaurants ............................... 310<br />
Huddle House<br />
Huddle House ............................................................ 312<br />
Hungry Howie's Pizza & Subs<br />
Hungry Howie's Pizza & Subs.................................... 314<br />
Hungry Hunters/Mountain<br />
Jacks/Carvers<br />
Hungry Hunters/Mountain Jacks/Carvers .................. 316<br />
IHOP Corp.<br />
International House of Pancakes ............................... 323<br />
Il Fornaio<br />
Il Fornaio.................................................................... 317<br />
In-N-Out Burger<br />
In-N-Out Burger ......................................................... 319<br />
International Dairy Queen, Inc.<br />
Dairy Queen/ Brazier ................................................. 196<br />
International Dairy Queen, Inc. .................................. 321<br />
KarmelKorn................................................................ 348<br />
Orange Julius of America........................................... 458<br />
Islands Restaurants<br />
Islands Restaurants ................................................... 327<br />
J. Alexander's<br />
J. Alexander's ............................................................ 328<br />
Jack in the Box<br />
Jack in the Box .......................................................... 330<br />
Jamba Juice<br />
Jamba Juice............................................................... 334<br />
Jason's Deli<br />
Jason's Deli................................................................ 336<br />
Jersey Mike's Subs<br />
Jersey Mike's Subs .................................................... 338<br />
Jillian's Billiard Club & Cafe<br />
Jillian's Billiard Club & Cafe ....................................... 339<br />
Johnny Rockets<br />
Johnny Rockets ......................................................... 344<br />
K&W Cafeterias<br />
K&W Cafeterias ......................................................... 346<br />
Kimpton Individual Restaurants<br />
Kimpton Individual Restaurants ................................. 356<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
5
Krispy Kreme<br />
Krispy Kreme ..............................................................360<br />
Krystal Company<br />
Krystal Company ........................................................366<br />
LaRosa's Pizzerias<br />
LaRosa's Pizzerias .....................................................376<br />
Landry's Restaurants, Inc.<br />
Chart House ...............................................................130<br />
Crab House/Capt. Crab's Take-Away.........................185<br />
Joe's Crab Shack........................................................340<br />
Landry's Restaurants, Inc. ..........................................372<br />
Landry's Seafood........................................................374<br />
Muer Seafood Restaurants.........................................438<br />
Rainforest Cafe...........................................................531<br />
Legal Sea Foods<br />
Legal Sea Foods ........................................................380<br />
Lettuce Entertain You Restaurants<br />
Lettuce Entertain You Restaurants.............................383<br />
Little Caesars<br />
Little Caesars..............................................................386<br />
Logan's Roadhouse<br />
Logan's Roadhouse....................................................388<br />
Lone Star Steakhouse and Saloon, Inc.<br />
Del Frisco's/Sullivan's .................................................209<br />
Lone Star Steakhouse and Saloon .............................390<br />
Luby's<br />
Luby's .........................................................................396<br />
Max & Erma's<br />
Max & Erma's .............................................................401<br />
Mazzio's Corp.<br />
Mazzio's Pizza ............................................................404<br />
Zio's Italian Kitchen.....................................................693<br />
McAlister's Deli<br />
McAlister's Deli ...........................................................405<br />
McCormick & Schmick's<br />
McCormick & Schmick's .............................................407<br />
McDonald's Corp.<br />
Boston Market ..............................................................71<br />
Chipotle ......................................................................152<br />
Donatos Pizza ............................................................224<br />
McDonald's.................................................................410<br />
Metromedia Restaurant Group<br />
Bennigan's....................................................................48<br />
Metromedia Restaurant Group ...................................422<br />
Ponderosa/Bonanza ...................................................515<br />
Steak and Ale .............................................................619<br />
Mexican Restaurants<br />
Mexican Restaurants..................................................424<br />
Mimi's Cafes<br />
Mimi's Cafes ...............................................................428<br />
Morton's of Chicago<br />
Bertolini's Authentic Trattoria........................................52<br />
Mr. Gatti's<br />
Mr. Gatti's ...................................................................433<br />
Mrs. Fields Original Cookies, Inc.<br />
Great American Cookies.............................................276<br />
Hot Sam......................................................................301<br />
Mrs. Fields ..................................................................435<br />
Original Cookie Co., The ............................................460<br />
Pretzel Maker .............................................................523<br />
Pretzel Time ...............................................................524<br />
TCBY Treats...............................................................647<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
6
Nathan's Famous, Inc.<br />
Kenny Rogers Roasters............................................. 349<br />
Miami Subs Grill......................................................... 426<br />
Nathan's Famous....................................................... 439<br />
New World Restaurant Group, Inc.<br />
Chesapeake Bagel Bakery ........................................ 138<br />
Einstein Bros. Bagels................................................. 233<br />
Noble Roman's<br />
Noble Roman's .......................................................... 442<br />
O'Charley's<br />
99 Restaurant & Pubs.................................................... 1<br />
O'Charley's ................................................................ 444<br />
Old Spaghetti Factory, The<br />
Old Spaghetti Factory, The ........................................ 452<br />
Original Pancake House<br />
Original Pancake House ............................................ 461<br />
Original Roadhouse Grill<br />
Original Roadhouse Grill............................................ 462<br />
Outback Steakhouse<br />
Carrabba's Italian Grill ............................................... 117<br />
Outback Steakhouse.................................................. 463<br />
Roy’s Restaurants ..................................................... 560<br />
P.F. Chang's China Bistro<br />
P.F. Chang's China Bistro.......................................... 466<br />
Pei Wei Asian Diner ................................................... 492<br />
Palm Restaurants<br />
Palm Restaurants ...................................................... 470<br />
Panda Restaurant Group<br />
Hibachi San ............................................................... 295<br />
Panda Express .......................................................... 472<br />
Panda Inn .................................................................. 474<br />
Panera Bread/Saint Louis Bread Co.<br />
Panera Bread/Saint Louis Bread Co.......................... 475<br />
Papa Gino's, Inc.<br />
D'Angelo Sandwich Shops......................................... 194<br />
Papa Gino's ............................................................... 481<br />
Papa John's<br />
Papa John's ............................................................... 483<br />
Pappas Restaurants<br />
Pappas Restaurants .................................................. 486<br />
Pat & Oscar's<br />
Pat & Oscar's............................................................. 488<br />
Perkins Restaurants & Bakery<br />
Perkins Restaurants & Bakery ................................... 496<br />
Peter Piper Pizza<br />
Peter Piper Pizza ....................................................... 498<br />
Piccadilly Circus Pizza<br />
Piccadilly Circus Pizza............................................... 500<br />
Pizza Inn<br />
Pizza Inn .................................................................... 509<br />
Pizzeria Uno Chicago Bar & Grill<br />
Pizzeria Uno Chicago Bar & Grill ............................... 511<br />
Prandium, Inc.<br />
Chi-Chi's .................................................................... 143<br />
Hamburger Hamlet..................................................... 286<br />
Koo Koo Roo ............................................................. 358<br />
Prandium, Inc............................................................. 521<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
7
Quality Dining, Inc.<br />
Grady's American Grill................................................273<br />
Quality Dining, Inc.......................................................525<br />
Quiznos Subs<br />
Quiznos Subs .............................................................527<br />
Rare Hospitality International, Inc.<br />
Bugaboo Creek Steak House .......................................89<br />
Capital Grille, The.......................................................104<br />
Longhorn Steakhouse.................................................394<br />
Rare Hospitality International, Inc...............................534<br />
Red Robin<br />
Red Robin...................................................................541<br />
Restaurants Unlimited<br />
Restaurants Unlimited ................................................544<br />
Rio Bravo Fresh Mex<br />
Rio Bravo Fresh Mex..................................................546<br />
Roadhouse Grill<br />
Roadhouse Grill..........................................................548<br />
Rock Bottom Restaurants, Inc.<br />
Old Chicago Restaurants............................................448<br />
Rock Bottom Brewery .................................................550<br />
Round Table Pizza<br />
Round Table Pizza .....................................................558<br />
Rubio's Baja Grill<br />
Rubio's Baja Grill ........................................................562<br />
Ruby Tuesday<br />
Ruby Tuesday ............................................................564<br />
Ruth's Chris Steak House<br />
Ruth's Chris Steak House...........................................568<br />
Ryan's Family Steak House<br />
Ryan's Family Steak House........................................570<br />
Saltgrass Steak House<br />
Saltgrass Steak House ...............................................573<br />
Sbarro<br />
Sbarro.........................................................................575<br />
Sbarro Specialty Concepts .........................................577<br />
Schlotzsky's Deli<br />
Schlotzsky's Deli.........................................................579<br />
Shari's Restaurants<br />
Shari's Restaurants ....................................................585<br />
Shoney's Inc.<br />
Captain D's .................................................................106<br />
Shoney's.....................................................................587<br />
Smith & Wollensky<br />
Smith & Wollensky......................................................590<br />
Smoothie King<br />
Smoothie King ............................................................595<br />
Sonic Drive-Ins<br />
Sonic Drive-Ins ...........................................................597<br />
Sonny's Real Pit BBQ<br />
Sonny's Real Pit BBQ.................................................600<br />
Souper Salad<br />
Souper Salad..............................................................602<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
8
Souplantation/Sweet Tomatoes<br />
Souplantation/Sweet Tomatoes ................................. 604<br />
Specialty Restaurant Group, LLC<br />
American Cafe ............................................................... 9<br />
Specialty Restaurants Dinnerhouses......................... 608<br />
Tia's Tex-Mex ............................................................ 652<br />
Spectrum Restaurant Group, Inc.<br />
Grandy's .................................................................... 274<br />
National Sports Grill................................................... 441<br />
Spectrum Foods ........................................................ 609<br />
Starbucks<br />
Starbucks................................................................... 610<br />
Steak Escape<br />
Steak Escape............................................................. 621<br />
Stockade Companies, Inc.<br />
Coyote Canyon .......................................................... 182<br />
Montana Mike's Steakhouse...................................... 430<br />
Sirloin Stockade......................................................... 589<br />
Stuart Anderson's<br />
Stuart Anderson's ...................................................... 623<br />
Subway<br />
Subway ...................................................................... 625<br />
T S Restaurants<br />
T S Restaurants......................................................... 631<br />
Taco Bueno<br />
Taco Bueno ............................................................... 641<br />
Taco John's<br />
Taco John's................................................................ 643<br />
Tastee Freez<br />
Tastee Freez.............................................................. 645<br />
Texas Roadhouse<br />
Texas Roadhouse...................................................... 649<br />
Tony Roma's<br />
Tony Roma's.............................................................. 661<br />
Total Entertainment Restaurant Corp.<br />
Fox & Hound English Pub & Grille ............................. 247<br />
Tumbleweed Grill & Bar<br />
Tumbleweed Grill & Bar ............................................. 663<br />
Villa Pizza & Cozzoli's Pizza<br />
Villa Pizza & Cozzoli's Pizza...................................... 665<br />
Village Inn<br />
Village Inn .................................................................. 667<br />
Waffle House<br />
Waffle House ............................................................. 671<br />
Wendy's International, Inc.<br />
Baja Fresh Mexican Grill.............................................. 36<br />
Tim Hortons ............................................................... 654<br />
Wendy's Old Fashioned Hamburgers ........................ 672<br />
WesterN SizzliN Corporation<br />
WesterN SizzliN......................................................... 677<br />
Whataburger<br />
Whataburger .............................................................. 681<br />
White Castle<br />
White Castle .............................................................. 683<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
9
Wienerschnitzel/O.H.S.<br />
Wienerschnitzel/O.H.S................................................685<br />
Winners International<br />
Lee's Famous Recipe .................................................378<br />
Mrs. Winner's Chicken & Biscuits ...............................436<br />
Wolfgang Puck Fine Dining<br />
Wolfgang Puck Fine Dining ........................................687<br />
Yum! Brands, Inc.<br />
A&W Restaurants ...........................................................4<br />
KFC ............................................................................351<br />
Long John Silver's ......................................................392<br />
Pizza Hut ....................................................................505<br />
Taco Bell.....................................................................637<br />
Yum! Brands, Inc. .......................................................689<br />
la Madeleine<br />
la Madeleine ...............................................................368<br />
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believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
10
Appendix C<br />
Publicly-held Companies<br />
APPB ...... Applebee's Neighborhood Grill & Bar.......... 10<br />
AVDO...... Avado Brands, Inc....................................... 28<br />
BOBE...... Bob Evans................................................... 64<br />
BUNZ ...... Schlotzsky's Deli ....................................... 579<br />
CAKE ...... Cheesecake Factory, The......................... 135<br />
CASA ...... Mexican Restaurants ................................ 424<br />
CHUX...... O'Charley's................................................ 444<br />
CKR ........ CKE Restaurants, Inc. .............................. 167<br />
CPKI ....... California Pizza Kitchen .............................. 99<br />
DRI.......... Darden Restaurants, Inc. .......................... 201<br />
EAT......... Brinker International.................................... 77<br />
FRN ........ Friendly's................................................... 251<br />
FRS......... Frisch's Restaurants, Inc........................... 254<br />
JBX ......... Jack in the Box.......................................... 330<br />
KKD ........ Krispy Kreme ............................................ 360<br />
LNY......... Landry's Restaurants, Inc. ........................ 372<br />
LUB......... Luby's........................................................ 396<br />
OSI.......... Outback Steakhouse................................. 463<br />
PDIM....... Prandium, Inc............................................ 521<br />
PFCB ...... P.F. Chang's China Bistro......................... 466<br />
PNRA...... Panera Bread/Saint Louis Bread Co. ........ 475<br />
PZZA....... Papa John's .............................................. 483<br />
QDIN....... Quality Dining, Inc..................................... 525<br />
RARE...... Rare Hospitality International, Inc. ............ 534<br />
RI ............ Ruby Tuesday........................................... 564<br />
RRGB ..... Red Robin................................................. 541<br />
RYAN...... Ryan's Family Steak House ...................... 570<br />
SBUX ...... Starbucks .................................................. 610<br />
SONC ..... Sonic Drive-Ins.......................................... 597<br />
YUM........ Yum! Brands, Inc. ..................................... 689<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
1
Arizona<br />
Green Burrito ............................................................. 279<br />
Houston's Specialty Restaurants ............................... 310<br />
La Salsa Fresh Mexican Grill ..................................... 370<br />
P.F. Chang's China Bistro.......................................... 466<br />
Pei Wei Asian Diner ................................................... 492<br />
Peter Piper Pizza ....................................................... 498<br />
California<br />
Acapulco Restaurants.................................................... 6<br />
Baja Fresh Mexican Grill.............................................. 36<br />
Bubba Gump Shrimp ................................................... 82<br />
California Pizza Kitchen ............................................... 99<br />
Carl's Jr...................................................................... 111<br />
Carrows ..................................................................... 120<br />
Cheesecake Factory, The.......................................... 135<br />
Chevys Fresh Mex..................................................... 139<br />
Chi-Chi's .................................................................... 143<br />
CKE Restaurants, Inc. ............................................... 167<br />
Claim Jumper............................................................. 169<br />
Coco's Bakery Restaurant ......................................... 171<br />
Del Taco .................................................................... 211<br />
Diedrich/Gloria Jean's Coffee .................................... 216<br />
El Pollo Loco.............................................................. 238<br />
El Torito ..................................................................... 240<br />
Fuzio Universal Pasta/Other Concepts ...................... 261<br />
Hamburger Hamlet..................................................... 286<br />
Harman Management Corp. ...................................... 294<br />
Hibachi San ............................................................... 295<br />
House of Blues .......................................................... 306<br />
Houston's................................................................... 308<br />
Hungry Hunters/Mountain Jacks/Carvers .................. 316<br />
Il Fornaio.................................................................... 317<br />
In-N-Out Burger ......................................................... 319<br />
International House of Pancakes ............................... 323<br />
Islands Restaurants ................................................... 327<br />
Jack in the Box .......................................................... 330<br />
Jamba Juice............................................................... 334<br />
Johnny Rockets ......................................................... 344<br />
Kimpton Individual Restaurants ................................. 356<br />
Koo Koo Roo ............................................................. 358<br />
Mimi's Cafes .............................................................. 428<br />
Panda Express .......................................................... 472<br />
Panda Inn .................................................................. 474<br />
Pat & Oscar's............................................................. 488<br />
Pick Up Stix ............................................................... 502<br />
Prandium, Inc............................................................. 521<br />
Rio Bravo Fresh Mex ................................................. 546<br />
Round Table Pizza .................................................... 558<br />
Roy’s Restaurants ..................................................... 560<br />
Rubio's Baja Grill ....................................................... 562<br />
Appendix D<br />
Geographical by State<br />
Souplantation/Sweet Tomatoes ................................. 604<br />
Specialty Restaurants Dinnerhouses......................... 608<br />
Stuart Anderson's ...................................................... 623<br />
Taco Bell.................................................................... 637<br />
Wienerschnitzel/O.H.S............................................... 685<br />
Wolfgang Puck Fine Dining........................................ 687<br />
Canada<br />
Tim Hortons ............................................................... 654<br />
Colorado<br />
Bakers Square ............................................................. 40<br />
Boston Market.............................................................. 71<br />
Champps Entertainment, Inc. .................................... 125<br />
Chipotle...................................................................... 152<br />
Einstein Bros. Bagels................................................. 233<br />
Old Chicago Restaurants........................................... 448<br />
Quiznos Subs ............................................................ 527<br />
Red Robin.................................................................. 541<br />
Rock Bottom Brewery ................................................ 550<br />
Village Inn .................................................................. 667<br />
Connecticut<br />
Carvel Ice Cream Bakery........................................... 122<br />
Subway ...................................................................... 625<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
DC<br />
Palm Restaurants ...................................................... 470<br />
Florida<br />
Ale House ...................................................................... 8<br />
Arby's........................................................................... 14<br />
Bahama Breeze ........................................................... 34<br />
Benihana...................................................................... 46<br />
Burger King.................................................................. 91<br />
Carrabba's Italian Grill ............................................... 117<br />
Checkers Drive-In Restaurants.................................. 132<br />
Darden Restaurants, Inc. ........................................... 201<br />
Hard Rock Cafe ......................................................... 288<br />
Hops Grillhouse & Brewery........................................ 299<br />
Miami Subs Grill......................................................... 426<br />
Olive Garden, The...................................................... 453<br />
Outback Steakhouse.................................................. 463<br />
Pollo Tropical ............................................................. 513<br />
1
Rally's Restaurants.....................................................533<br />
Red Lobster ................................................................536<br />
Roadhouse Grill..........................................................548<br />
Smokey Bones BBQ...................................................592<br />
Sonny's Real Pit BBQ.................................................600<br />
Georgia<br />
Atlanta Bread Company................................................20<br />
Avado Brands, Inc. .......................................................28<br />
Blimpie Subs & Salads .................................................61<br />
Bugaboo Creek Steak House .......................................89<br />
Canyon Cafes.............................................................103<br />
Capital Grille, The.......................................................104<br />
Chick-fil-A ...................................................................145<br />
Church's Chicken........................................................159<br />
Cinnabon ....................................................................165<br />
Don Pablo's ................................................................221<br />
Freshen's Premium Yogurt & Ice Cream ....................249<br />
Hooters .......................................................................297<br />
Huddle House.............................................................312<br />
Lee's Famous Recipe .................................................378<br />
Longhorn Steakhouse.................................................394<br />
Mrs. Winner's Chicken & Biscuits ...............................436<br />
Popeyes Chicken & Biscuits .......................................517<br />
Rare Hospitality International, Inc...............................534<br />
Waffle House ..............................................................671<br />
Hawaii<br />
T S Restaurants..........................................................631<br />
Illinois<br />
Bertolini's Authentic Trattoria........................................52<br />
Lettuce Entertain You Restaurants.............................383<br />
McDonald's.................................................................410<br />
Indiana<br />
Grady's American Grill................................................273<br />
Noble Roman's ...........................................................442<br />
Quality Dining, Inc.......................................................525<br />
Iowa<br />
Piccadilly Circus Pizza................................................500<br />
Kansas<br />
Applebee's Neighborhood Grill & Bar ...........................10<br />
Coyote Canyon...........................................................182<br />
Del Frisco's/Sullivan's .................................................209<br />
Fox & Hound English Pub & Grille..............................247<br />
Lone Star Steakhouse and Saloon .............................390<br />
Montana Mike's Steakhouse.......................................430<br />
Sirloin Stockade..........................................................589<br />
Kentucky<br />
A&W Restaurants ...........................................................4<br />
Fazoli's .......................................................................245<br />
Jillian's Billiard Club & Cafe ........................................339<br />
KFC ............................................................................351<br />
Long John Silver's ......................................................392<br />
Papa John's................................................................483<br />
Texas Roadhouse ......................................................649<br />
Tumbleweed Grill & Bar..............................................663<br />
Yum! Brands, Inc. .......................................................689<br />
Louisiana<br />
Ruth's Chris Steak House...........................................568<br />
Smoothie King ............................................................595<br />
Massachusetts<br />
99 Restaurant & Pubs.....................................................1<br />
Au Bon Pain..................................................................23<br />
Back Bay Restaurants ..................................................30<br />
Baskin-Robbins ............................................................43<br />
Bertucci's ......................................................................53<br />
D'Angelo Sandwich Shops..........................................194<br />
Dunkin' Donuts ...........................................................227<br />
Friendly's ....................................................................251<br />
Fuddruckers................................................................256<br />
Ground Round ............................................................281<br />
Legal Sea Foods ........................................................380<br />
Papa Gino's ................................................................481<br />
Pizzeria Uno Chicago Bar & Grill................................511<br />
Togo's Eatery..............................................................658<br />
Vinny T's of Boston.....................................................669<br />
Michigan<br />
Big Boy .........................................................................57<br />
Domino's Pizza ...........................................................218<br />
Hungry Howie's Pizza & Subs ....................................314<br />
Little Caesars..............................................................386<br />
Muer Seafood Restaurants.........................................438<br />
Tastee Freez ..............................................................645<br />
Minnesota<br />
Buca di Beppo ..............................................................84<br />
Buffalo Wild Wings Grill & Bar ......................................87<br />
Caribou Coffee ...........................................................109<br />
Dairy Queen/ Brazier ..................................................196<br />
Famous Dave's...........................................................242<br />
Haagen-Dazs..............................................................284<br />
International Dairy Queen, Inc. ...................................321<br />
KarmelKorn.................................................................348<br />
Old Country Buffet/HomeTown Buffet.........................450<br />
Orange Julius of America ...........................................458<br />
Original Roadhouse Grill.............................................462<br />
Timber Lodge Steakhouse..........................................656<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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Mississippi<br />
McAlister's Deli .......................................................... 405<br />
Missouri<br />
Hardee's .................................................................... 291<br />
Houlihan's .................................................................. 302<br />
Houlihan’s Restaurant Group..................................... 304<br />
Panera Bread/Saint Louis Bread Co.......................... 475<br />
Nebraska<br />
Godfather's Pizza....................................................... 266<br />
New Jersey<br />
Charlie Brown's Steakhouses .................................... 128<br />
Chesapeake Bagel Bakery ........................................ 138<br />
Jersey Mike's Subs .................................................... 338<br />
Office Beer Bar & Grill, The ....................................... 447<br />
Villa Pizza & Cozzoli's Pizza...................................... 665<br />
New York<br />
Ark Restaurants ........................................................... 18<br />
Carrols Corp. ............................................................. 119<br />
Cosi............................................................................ 177<br />
Kenny Rogers Roasters............................................. 349<br />
Morton's of Chicago ................................................... 431<br />
Nathan's Famous....................................................... 439<br />
Patina Restaurant ...................................................... 490<br />
Sbarro ........................................................................ 575<br />
Sbarro Specialty Concepts ........................................ 577<br />
Smith & Wollensky..................................................... 590<br />
North Carolina<br />
Boddie-Noell Enterprises, Inc. ..................................... 67<br />
Bojangles' Famous Chicken 'N Biscuits ....................... 69<br />
Golden Corral ............................................................ 268<br />
K&W Cafeterias ......................................................... 346<br />
Krispy Kreme ............................................................. 360<br />
Sagebrush Steakhouse & Saloon .............................. 572<br />
Texas Steakhouse & Saloon...................................... 651<br />
Western Steer............................................................ 679<br />
Ohio<br />
Bob Evans ................................................................... 64<br />
Damon's Grill ............................................................. 199<br />
Donatos Pizza............................................................ 224<br />
Frisch's Restaurants, Inc............................................ 254<br />
Great Steak & Potato Co., The .................................. 277<br />
LaRosa's Pizzerias .................................................... 376<br />
Max & Erma's............................................................. 401<br />
Steak Escape............................................................. 621<br />
Wendy's Old Fashioned Hamburgers ........................ 672<br />
White Castle .............................................................. 683<br />
Oklahoma<br />
Braum's Ice Cream & Dairy Stores .............................. 75<br />
Daylight Donut Shops ................................................ 208<br />
Garcia's Mexican Restaurants ................................... 262<br />
Garfield's Restaurant & Pub....................................... 264<br />
Mazzio's Pizza ........................................................... 404<br />
Pepperoni Grill/Others ............................................... 494<br />
Sonic Drive-Ins .......................................................... 597<br />
Zio's Italian Kitchen.................................................... 693<br />
Oregon<br />
McCormick & Schmick's............................................. 407<br />
Old Spaghetti Factory, The ........................................ 452<br />
Original Pancake House ............................................ 461<br />
Shari's Restaurants.................................................... 585<br />
Pennsylvania<br />
Auntie Anne's............................................................... 26<br />
Eat 'n Park ................................................................. 232<br />
Fox's Pizza Den ......................................................... 248<br />
South Carolina<br />
Denny's...................................................................... 213<br />
Ryan's Family Steak House....................................... 570<br />
Tennessee<br />
American Cafe ............................................................... 9<br />
Back Yard Burgers....................................................... 32<br />
Black-eyed Pea............................................................ 59<br />
Captain D's ................................................................ 106<br />
Cracker Barrel Old Country Store .............................. 186<br />
Gordon Biersch/Big River Breweries.......................... 271<br />
J. Alexander's ............................................................ 328<br />
Krystal Company ....................................................... 366<br />
Logan's Roadhouse ................................................... 388<br />
O'Charley's ................................................................ 444<br />
Perkins Restaurants & Bakery ................................... 496<br />
Ruby Tuesday............................................................ 564<br />
Shoney's .................................................................... 587<br />
Tia's Tex-Mex ............................................................ 652<br />
Texas<br />
Bennigan's ................................................................... 48<br />
Big Bowl....................................................................... 55<br />
Brinker International..................................................... 77<br />
Carlson - Emerging Brands Div. ................................ 114<br />
Carlson Restaurants Worldwide ................................ 115<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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Chart House ...............................................................130<br />
Cheddar's Casual Cafe...............................................134<br />
Chili's Grill & Bar.........................................................148<br />
Chuck E. Cheese's .....................................................157<br />
CiCi's Pizza.................................................................163<br />
Consolidated Restaurant Operations..........................173<br />
Corner Bakery ............................................................175<br />
Cozymel's ...................................................................183<br />
Crab House/Capt. Crab's Take-Away.........................185<br />
Dave & Buster's ..........................................................205<br />
El Chico ......................................................................236<br />
Furr's/Bishop's Cafeterias...........................................259<br />
Good Eats...................................................................270<br />
Grandy's .....................................................................274<br />
Gumbo's Louisiana Style Cafe....................................283<br />
Jason's Deli ................................................................336<br />
Joe's Crab Shack........................................................340<br />
Johnny Carino's Country Italian ..................................342<br />
la Madeleine ...............................................................368<br />
Landry's Restaurants, Inc. ..........................................372<br />
Landry's Seafood........................................................374<br />
Luby's .........................................................................396<br />
Maggiano's .................................................................398<br />
Metromedia Restaurant Group ...................................422<br />
Mexican Restaurants..................................................424<br />
Mr. Gatti's ...................................................................433<br />
National Sports Grill....................................................441<br />
On the Border .............................................................456<br />
Pappas Restaurants ...................................................486<br />
Pizza Hut ....................................................................505<br />
Pizza Inn.....................................................................509<br />
Ponderosa/Bonanza ...................................................515<br />
Rainforest Cafe...........................................................531<br />
Rockfish Seafood Grill ................................................553<br />
Romano's Macaroni Grill ............................................555<br />
Saltgrass Steak House ...............................................573<br />
Schlotzsky's Deli.........................................................579<br />
Souper Salad..............................................................602<br />
Spaghetti Warehouse, The .........................................606<br />
Spectrum Foods .........................................................609<br />
Steak and Ale .............................................................619<br />
T.G.I. Friday's .............................................................632<br />
Taco Bueno ................................................................641<br />
Tony Roma's...............................................................661<br />
Whataburger...............................................................681<br />
Utah<br />
Great American Cookies.............................................276<br />
Hot Sam......................................................................301<br />
Mrs. Fields ..................................................................435<br />
Original Cookie Co., The ............................................460<br />
Pretzel Maker .............................................................523<br />
Pretzel Time ...............................................................524<br />
TCBY Treats...............................................................647<br />
Vermont<br />
Bruegger's Bagel Bakery ..............................................80<br />
Virginia<br />
WesterN SizzliN..........................................................677<br />
Washington<br />
Cucina! Cucina! Italian Cafe .......................................189<br />
Cucina! Cucina! Presto ...............................................190<br />
Restaurants Unlimited ................................................544<br />
Seattle's Best Coffee ..................................................583<br />
Starbucks....................................................................610<br />
Wisconsin<br />
Country Kitchen ..........................................................180<br />
Culver's Frozen Custard and ButterBurgers® ............191<br />
Wyoming<br />
Taco John's ................................................................643<br />
©<strong>Technomic</strong>, Inc. 2004, <strong>RISE</strong> profiles may not be copied or distributed in any print or electronic format without a license or written consent. <strong>Technomic</strong><br />
believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information published.<br />
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