PERIODICALS
THE NEWS LEADER OF THE FOODSERVICE INDUSTRY • WWW.NRN.COM
VOL. 43, NO. 6
A LEBHAR-FRIEDMAN® PUBLICATION • $5.00
FEBRUARY 16, 2009
Bankrupt brands eye new chapter, aim to turn page
Dinnerhouses seek
positives despite
negative economy
Vicorp, Sam Seltzer’s begin next phase after surviving tough reorganization process
BY SARAH E. LOCKYER
BY RON RUGGLESS
From the small, such as
six-unit Sam Seltzer’s
Steakhouse, to the large,
like family-dining giant
Vicorp Restaurants Inc.,
scores of restaurant operations
will be working to exit bankrupt-
The dark economic cloud hanging
over the casual-dining segment
has become so dismal that even
its silver lining appears a tad
tarnished. But operators and
investors nonetheless say they see
rays of hope.
Even as continued layoffs and
store closures move the segment
closer to a pitched Darwinian battle for survival, some savvy casual
players are focusing on the opportunities provided by lower commodity and food costs, easier
recruiting and retention of talented management, and reduced
media costs that make marketing
a less expensive proposition.
Many also are turning up their
innovation as they work to lure
spending-shy customers back to
their folds with new menu items,
cooking platforms and value-oriented concepts.
“It’s really all about stealing
market share at this point,” says
Tim Hackbardt of The White Barn
Group, a marketing agency in San
Juan Capistrano, Calif., that specializes in strategies for restaurant
chains.
“You have the whole world
trading down to McDonald’s, or
they are trading out into brown
bagging and groceries,” Hackbardt
says. “You have to think about
what you are promoting that will
drive transactions. You have to
have a specific offer that is attractive, interesting and relevant
to the consumer. And you have to
offer innovation, something the
(See DINNERHOUSES, page 39)
cy in the months and
years ahead.
For these two companies
in particular, both of
which were hit hard
enough by macroeconomic factors and self-inflicted
wounds to file for Chapter 11 bankruptcy protection last year, the end
of the road comes next month.
The leaders at Sam Seltzer’s
and Vicorp say that in navigating
the bankruptcy process there are
best practices to consider and pitfalls to avoid. Most importantly,
they add, there is a light at the end
of the tunnel. To reach it, goals
must be clear, executives must
make tough decisions, and support
needs to be garnered from employees, vendors and customers.
“For us, it was, not only are we
in Chapter 11, we’re also in the
deepest recession we’ve seen in
80 years,” said John Mountford,
chief executive at Sam Seltzer’s
(See BANKRUPT, page 8)
A Denny’s restaurant in Aurora, Colo., was filled
to capacity for eight hours straight during the
chain’s Grand Slam breakfast giveaway.
FRANK BERTA
Denny’s scores hit with Grand Slam giveaway
Chain dishes up goodwill, says promo boosts guest counts, comp-store sales
BY ELISSA ELAN
SPARTANBURG, S.C. — Denny’s
high-profile free-breakfast promotion earlier this month was a
grand slam home run, according
to executives and franchisees of
the family-dining chain, who say
they are considering either
repeating the event or creating
similar ones in the future.
The Feb. 3 giveaway was
aimed at luring back customers
who had strayed from the brand
by offering free Grand Slam
breakfasts at all 1,500 stores systemwide. Mark Chmiel, executive
vice president and chief market-
ing officer for Denny’s, said initial
proprietary data indicates that
the promotion, which was advertised during the Super Bowl Feb.
1 and drew huge media attention,
hit its target.
“Our preliminary reaction is
that it was an overwhelming success that exceeded all of our
benchmarks,” he said. “We’re looking at this on a couple of different
levels. First, we had approximately 49 million visitors to our website, and 84 percent of people who
visited [on giveaway day] said
they were very satisfied with their
experience. And almost 80 percent
(See DENNY’S, page 62)
ALSO
THIS
WEEK:
More than 4,000 jobs this week on NRNJobPlate.com. Hiring? It’s the perfect place. Looking? Post your résumé at NRNJobPlate.com
NEW-MEDIA MARKETING:
Carvel dishes about Fudgie’s
big mobile adventure pg. 12
CONSUMER TRENDS:
During ‘diet season’ diners seek
healthful, value-oriented fare pg. 16
CULINARY CURRENTS:
Hand-held breakfast items prove to be
affordable, portable and profitable pg. 27
