ECO-
NOMICS:
Local sourcing
top of mind for
2010, says NRA
survey
pg. 12
Quick-service operators count on couponing
Despite possible pitfalls, chains rely on incentive to attract deal-seekers
BY LISA JENNINGS
GOLDEN
CHAIN:
Top execs tackle
the industry’s
most pressing
problems.
pg. 24
After years of using six
direct-mail coupon drops per
year to drive customers in
when a new product or limited-time offer was introduced,
El Pollo Loco this year increased the number of coupon
mailings to nine, along with
adding more online-coupon
deals and “bounce back”
coupons issued in stores to
generate return visits.
The company has also
tinkered with the type of
coupons they offer to help
build check averages. Rather
than issuing coupons for 99-
cent burritos, the company is
doing more buy-one, get-one
coupon offers, such as offering a free chicken tamale
with the purchase of two.
El Pollo Loco is not alone.
As the recession drags on
and consumers are increas-
ingly motivated only by
deals and discounts, many
quick-service chains are
relying more heavily on
coupons as one method to increase traffic. Not only are
they viewed as a more benign alternative to deeply
discounted value menus,
which train customers to expect rock-bottom pricing, but
SEE COUNTING, PAGE 19
Alvarez retirement
HUMAN
RESOURCES:
Sullivan: What
you get paid for:
An open letter to
the crew
pg. 30
highlights importance
of succession plans
BY MARK BRANDAU
Cibo Matto restaurant in Chicago serves a fried mortadella panini with arugula, Havarti
cheese and pickles.
CULINARY
CURRENTS:
Bark Hot Dogs
aims to make
fast food
‘transparent’
pg. 32
Chefs make a case for the simple sausage;
say new variations anything but daily grind
OAK BROOK, ILL. — The Nov.
30 announcement that McDonald’s Corp. president
and chief operating officer
Ralph Alvarez would retire
may have surprised industry watchers and the analyst
community, but most observers agreed that if any
restaurant company can withstand an unexpected executive shake-up, it’s the world’s
largest hamburger chain.
McDonald’s, which has
faced the sudden loss of
leadership before, has long
been lauded for its deep
bench of experienced executives and leadership development practices — characteristics that the Securities
and Exchange Commission
is encouraging among more
companies.
McDonald’s president and
COO Ralph Alvarez recently
announced his retirement.
BY PAMELA PARSEGHIAN
Following the hamburger’s
recent elevation in status,
chefs now are giving inexpensive sausage, from
bratwurst to bologna, the
royal treatment.
On the streets of Los An-
geles a vendor sells local, organic, grass-feed beef hot
dogs, a celebrity chef makes
his own bologna in a brand
new Cleveland restaurant,
and a fine-dining French
chef in Manhattan offers 14
house-prepared sausages
from around the world, in-
cluding a $9 classic hot dog.
“People order four of
them,” says Daniel Boulud of
his dogs available at DBGB
Kitchen in New York.
Boulud says that despite
its reputation as a food that is
simple, making sausage and
SEE LINKED, PAGE 17
In late October, the agency
issued a bulletin detailing a
change in policy that requires
companies to show proof of
leadership depth and succession planning whenever investors request it. Prior to
