Nation's Restaurant News - January 5, 2009

McDonald’s names Gorsky
SVP, supply chain mgmt.

OAK BROOK, ILL. — McDonald’s Corp. promoted Dan Gorsky to senior vice president of North America supply chain management with responsibility for leading $10 billion in sourcing and purchasing operations for 15,000 restaurants in the United States and Canada. Gorsky’s promotion reflects a title change in keeping with the duties he inherited in June when he was named vice president of North America supply chain, succeeding J.C. Gonzalez-Mendez, who was named president of the 1,600- restaurant Latin America division.

In his new position, Gorsky, a 15-year McDonald’s veteran, will oversee the company’s food safety and quality assurance, supply chain sustainability, new-product commercialization, risk management, and sourcing supply.

Pizza Patrón unit cuts cook
times with ‘fast bake’ oven

SAN ANTONIO — Pizza Patrón, the 84-unit chain targeting the Latino market, said early sales at its first store offering quicker service have broken company records. The franchise unit, opened here in August 2008, has new “fast-bake” ovens that produce made-to-order pizzas in less than five minutes. The typical wait for a custom pizza from a traditional Pizza Patrón is 15 min-

utes. Pizza Patrón calls the concept “quick-service pizza,” or QSP.

The new unit is the concept’s first standalone location and features three areas where customers can order: a drive-thru, a walk-up window and a lobby. The company said the new pad-site prototype also broadens real estate options, which in the past had been in-line strip shopping center or end caps.

Luby’s Inc. projects further
sales decreases in 2009

HOUSTON — Luby’s Inc., the operator of 120 cafeterias in the Southwest, reported that the chain’s decreasing sales, which led to a $2.2 million loss in its fiscal first quarter, likely will continue through 2009. To combat the sales weakness, Luby’s introduced a new branding and advertising campaign themed “Here, You Rule,” which highlights the chain’s made-from-scratch foods and the guest-controlled dining experience. In 2007 the chain debuted a new prototype aimed at updating its cafeterias. At least four outlets were opened under the new prototype this year, but for 2009 the company said it plans to open only one or two new locations.

For the first quarter ended Nov. 19, Luby’s posted a net loss of $2.2 million, or 8 cents per share, compared with year-earlier earnings of $4.8 million, or 17 cents per share. Latest-quarter revenue fell 7. 9 percent to $65.9 million and reflected a same-store sales decline of 6. 7 percent.

Sagittarius names Lyons
chief development officer

NASHVILLE, TENN. — Sagittarius Brands, parent of the 510-unit Del Taco and 550-unit Captain D’s Seafood Kitchen chains, named

Jim Lyons chief development officer. Lyons replaces C. Ronald Petty, who resigned in June as president of development for Sagittarius. In his new role, Lyons will be responsible for Del Taco’s development, including real estate, construction, and franchise recruitment and operations. He also will provide oversight for similar functions at Captain D’s, Sagittarius said. Lyons most recently served as chief operating officer and chief development officer for Popeyes parent AFC Enterprises Inc.

Waffle House to buy units
from bankrupt franchisee

NORCROSS, GA. — Waffle House Inc., parent company of the 1,600- unit Waffle House family-dining chain, is in talks to purchase 121 restaurants owned and operated by one of its largest franchisees in the Southeast, Northlake Foods, which is in the midst of bankruptcy proceedings. A Waffle House spokesman would not offer a pending-deal value but said court approval for the plan is expected by the end of January.

Northlake Foods of Brandon, Fla., which operated 90 of the restaurants in central Florida and the rest in Georgia and Virginia, filed for Chapter 11 bankruptcy protection in September, on the heels of another Waffle House franchisee’s bankruptcy filing. Published reports indicated that Northlake’s Waffle House restaurants generate about $80 million in annual revenue.

Darden posts 2nd-Q profit
jump, lowers yearly outlook

ORLANDO, FLA. — Darden Restaurants Inc., parent of the Red Lobster, Olive Garden and LongHorn Steakhouse chains, said second-quarter net earnings rose 37. 2 percent from a year earlier, but the expectation of a more challenging second half of the year led to a lowered annual outlook. For the quarter ended Nov. 23, earnings rose to $59.7 million, or 43 cents per share, from year-ago earnings of $43.5 million, or 30 cents per share. Excluding costs related to the October 2007 acquisition of Rare Hospitality, per-share earnings would have totaled 44 cents per share in the latest quarter.

Second-quarter sales for the company that operates all 1,700 systemwide restaurants rose 9. 7 percent from a year ago to $1.7 billion. Sales from the acquired brands and new-unit openings in the Olive Garden chain drove the positive results. Same-store sales for the quarter rose 0.8 percent and 0.3 percent at Olive Garden and Red Lobster, respectively, but fell 5. 7 percent at LongHorn Steakhouse, 8. 7 percent at The Capital Grille and 8 percent at Bahama Breeze.

The company said it now expects per-share earnings from continuing operations to fall between 1 percent and 6 percent from a year earlier, compared with an earlier forecast for growth of between 5 percent and 10 percent.

Darden expects blended same-stores sales for Olive Garden, Red Lobster and LongHorn to fall between 1. 25 percent and 2. 25 percent. The company earlier had predicted same-store sales for those chains would be flat versus the year earlier or up 1 percent.

Goebel named to Jack in
the Box board of directors

SAN DIEGO — Jack in the Box Inc. said former Applebee’s chief executive David Goebel has joined the quick-service chain’s board of directors. Goebel headed up Applebee’s former parent company, Applebee’s International Inc., from 2006 until the chain was purchased by IHOP Corp. in late 2007.

David Goebel

He had held various posts there since 2001. Prior to joining Applebee’s, he was president of Summit Management Inc., a consulting group he founded specializing in executive development and strategic planning, and chief operating officer of Finest Foodservice LLC, an area development franchise for Boston Market that he founded and co-owned.

Taco Del Mar taps leader
for Canadian licensee

SEATTLE — Taco Del Mar named Bob Tipple president and chief executive of Taco Del Mar Canada, the chain’s exclusive Canadian licensee. Tipple previously served as president of Subway Developments 2000 Inc., where he helped develop more than 600 franchised restaurants in the Canadian provinces of British Columbia and Alberta. The Taco Del Mar chain includes 60 locations in Canada, as well as more than 200 in the United States, Puerto Rico and Guam. The Canadian licensee is in the process of completing a multimillion-dollar private placement to fund expansion of the brand.

ADVERTISER INDEX

ACCUVIA ACH FOOD COMPANIES, INC. ALLEN'S INC BRIDGFORD FOODS CAPITAL ROUNDTABLE CH GUENTHER CHART CHOLULA CONAGRA FOODS/LAMB WES TON DARLING INTERNATIONAL DIGITAL DINING DOMINO FOOD & NUTRASWEET DOLE PACKAGED FOODS EINSTEIN NOAH RESTAURANT GROUP EMERIL LAGASSE GOLF CLASSIC EUROPAEUS F. GAVINA FRANKLIN MACHINE PRODUCTS FULL TABLE MARKETING GENPAK GEORGIA PACIFIC HAPP Y CHEF UNIFORMS HIRAM WALKER HUDSON VALLEY FOIS GRAS

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PHONE NUMBER

800-287-1811 800-527-3026, ext. 0

800-357-25536 800-527-2105

888-215-9795 800-463-5918 866-608-4877 208-938-1047 800-914-1221

703-912-3000 800-443-2767, ext. 25203

800-723-9868

n/a 800-992-3876 800-428-4627 800-257-7737 866-800-0896 800-626-6695 800-257-9744 800-347-0288

845-292-2500

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