Because of Twitter, you can get a heads-up on restaurant developments long before they’re covered in the traditional sources of industry news. But the story behind the news story is a different matter. Consider, for instance, these little-noticed wrinkles in two heavily covered recent events.
Danny Meyer is selling splinters of his empire. The famed restaurateur drew tremendous coverage (including here) when he disclosed in a cookbook that he had agreed to sell his Eleven Madison Park to the starched outpost’s manager and executive chef. Less noticed was the bombshell that he’d served up another piece of his business, this time to the company led by the owner of the Miami Dolphins, Stephen Ross.
Ross’ Related Cos., perhaps best known as the developer of New York’s chi-chi Time Warner Center, acquired an undisclosed stake in Meyer’s Union Square Events catering and restaurant-management operation for an amount that wasn’t revealed. The purpose is to pair the two companies’ expertise in developing real estate complexes worldwide, but the process is starting with the partners’ backyard.
They’ve announced that they’ll be part of the 26-acre Hudson Yards project in New York, a venture that aims to turn the old train tracks and industrial space on Manhattan’s Far West Side into a new hub of consumer activity. Few details have been revealed about the foodservice aspect, but Meyer isn’t known for peddling the same ol’ same-old.
Taco Bell redefines who’s a competitor. No, this has nothing to do with the much-covered Cantina Bell menu, which has been identified in virtually every news story as the Mexican giant’s response to Chipotle’s success. I’m talking about the new breakfast menu, a.k.a. the First Meal bill of fare, which is studded with names that vie with Taco Bell for share of stomach and franchisees.
The roster includes a pastry item from Cinnabon, Focus Group’s bakery chain, and coffee from Starbucks branded as Seattle’s Best (curiously, a former sister of Cinnabon). You can find those brand names in a number of locations beyond their namesake stores. Seattle’s Best, for instance, is also available in Burger Kings, Subways and plenty of other foodservice outlets.
There’s even a Seattle’s Best coffee flavored with Cinnabon-brand cinnamon. Clearly licensing has become a big business for each.
But each still has a sizeable network of its own retail outlets. At one time, the industry would’ve clutched its chest at such brand-name mixing. Certainly franchisees would have. Then they would’ve dialed their lawyers.
It’s part of a new wave of cross-branding—led at least in part by franchisees. A Burger King franchisee, for instance, is serving as the test partner for a new collaboration with Friendly’s. The ice cream chain hopes to open at least 10 downsized Friendly’s Scoop fast-casual-style outlets this year. The first is co-branded with a Burger King store run by New Jersey franchisee.
Bet you might’ve missed that angle in all the coverage of Friendly's comeback efforts.
Showing posts with label Friendly's. Show all posts
Showing posts with label Friendly's. Show all posts
Friday, January 27, 2012
Monday, November 21, 2011
Myth busting
A confused figment of my imagination writes, “Hey, Restaurant Reality Check, how am I supposed to tell fact from fiction in the age of The Onion, the Borowitz Report and KFC’s publicity department? Some of their made-up restaurant stories sound more believable than the real thing. How can a non-cynic know when he’s being fed a whopper?” (signed, Believing It—Or Not?)
Dear Believing,
I was discussing the very thing yesterday with Henry Kissinger and the Fonz. You just can’t tell these days who’s pulling your leg and who’s merely covering the Republican presidential candidates.
Fortunately for you and your confused peers, Restaurant Reality Check can recount how a few persistent myths were disproved, decidedly, by recent industry developments.
Wall Street firms have a hammerlock on executive compensation outrages. A Friendly source—note the capital “F”—blew that one away. In case you missed reports in mainstream media like The Wall Street Journal and The Huffington Post, the restaurant industry has its own instance of a CEO enjoying big-dollar privileges while the corporate rank-and-file burn their pink slips for warmth.
According to the reports, Friendly’s CEO Harsha Agadi billed the company for $234,000 in day-to-day expenses in the year preceding the restaurant franchisor’s recent bankruptcy filing. The charges didn’t include the $190,000 Agadi submitted for relocation.
The contrast with the plight of Friendly’s workers is what made the story a hot one. More than 600 lost their jobs when some 60 stores closed.
We can also refute at this time that the Fribble lobby has secured a federal bailout for the family chain.
E-mail is killing letter writing. Not in the restaurant business. Hundreds of stationers could pop for a second home this year because of the business they’re reaping from disgruntled shareholders and the chains they’ve targeted for takeover.
This morning, for instance, Cracker Barrel shareholders were sent a letter from CEO Sandy Cochran, spelling out why they should rebuff Sardar Biglari in his attempts to wrest control of the family chain from current management. She countered Biglari’s assertions by explaining the chain’s business-building strategies, point by point.
The communication was in response to an 11-page letter that Biglari sent last week to the same recipients. Taken together, the two missives might have made Cracker Barrel’s shareholders the most informed in the business.
But that’s not the only volley of letters helping the Postal Service. Cosi and Brad Blum, the Olive Garden alumnus who wants to run the fast-casual chain, have stamp dispensers churning as well.
Ditto for the CEO-turned-advisor of Wendy’s, Roland Smith. Recent SEC filings include Smith’s resignation letter, which in turn referenced other missives during the summer. The communications indicate that Smith stepped down because he didn’t want to leave Atlanta, where the chain is currently headquartered. It’s moving back to the suburb of Columbus, Ohio, where it was founded.
Smith has been succeeded as CEO by Emil Brolick, who’s collecting $1.1 million in salary, with the opportunity to earn another $1.6 as a bonus. Smith was in the same ballpark.
Survival has supplanted concept development. According to the conventional wisdom, restaurant companies are too preoccupied with survival to consider the development of new concepts.
Not any more.
The last two weeks brought announcements of new concepts from such celebrated operators as Starbucks (Evolution Fresh Juices), P.F. Chang’s (Pei Wei Asian Market, which of course has nothing to do with Chipotle’s launch of ShopHouse Southeast Asian Market), IHOP (IHOP Express) and Jamba Juice (JambaGo, the juice chain’s riff on an express format).
Okay, enough myth busting for now. In our next installment, we’ll take on Yeti and the promises of restaurant unions.
Dear Believing,
I was discussing the very thing yesterday with Henry Kissinger and the Fonz. You just can’t tell these days who’s pulling your leg and who’s merely covering the Republican presidential candidates.
Fortunately for you and your confused peers, Restaurant Reality Check can recount how a few persistent myths were disproved, decidedly, by recent industry developments.
Wall Street firms have a hammerlock on executive compensation outrages. A Friendly source—note the capital “F”—blew that one away. In case you missed reports in mainstream media like The Wall Street Journal and The Huffington Post, the restaurant industry has its own instance of a CEO enjoying big-dollar privileges while the corporate rank-and-file burn their pink slips for warmth.
According to the reports, Friendly’s CEO Harsha Agadi billed the company for $234,000 in day-to-day expenses in the year preceding the restaurant franchisor’s recent bankruptcy filing. The charges didn’t include the $190,000 Agadi submitted for relocation.
The contrast with the plight of Friendly’s workers is what made the story a hot one. More than 600 lost their jobs when some 60 stores closed.
We can also refute at this time that the Fribble lobby has secured a federal bailout for the family chain.
E-mail is killing letter writing. Not in the restaurant business. Hundreds of stationers could pop for a second home this year because of the business they’re reaping from disgruntled shareholders and the chains they’ve targeted for takeover.
This morning, for instance, Cracker Barrel shareholders were sent a letter from CEO Sandy Cochran, spelling out why they should rebuff Sardar Biglari in his attempts to wrest control of the family chain from current management. She countered Biglari’s assertions by explaining the chain’s business-building strategies, point by point.
The communication was in response to an 11-page letter that Biglari sent last week to the same recipients. Taken together, the two missives might have made Cracker Barrel’s shareholders the most informed in the business.
But that’s not the only volley of letters helping the Postal Service. Cosi and Brad Blum, the Olive Garden alumnus who wants to run the fast-casual chain, have stamp dispensers churning as well.
Ditto for the CEO-turned-advisor of Wendy’s, Roland Smith. Recent SEC filings include Smith’s resignation letter, which in turn referenced other missives during the summer. The communications indicate that Smith stepped down because he didn’t want to leave Atlanta, where the chain is currently headquartered. It’s moving back to the suburb of Columbus, Ohio, where it was founded.
Smith has been succeeded as CEO by Emil Brolick, who’s collecting $1.1 million in salary, with the opportunity to earn another $1.6 as a bonus. Smith was in the same ballpark.
Survival has supplanted concept development. According to the conventional wisdom, restaurant companies are too preoccupied with survival to consider the development of new concepts.
Not any more.
The last two weeks brought announcements of new concepts from such celebrated operators as Starbucks (Evolution Fresh Juices), P.F. Chang’s (Pei Wei Asian Market, which of course has nothing to do with Chipotle’s launch of ShopHouse Southeast Asian Market), IHOP (IHOP Express) and Jamba Juice (JambaGo, the juice chain’s riff on an express format).
Okay, enough myth busting for now. In our next installment, we’ll take on Yeti and the promises of restaurant unions.
Friday, October 7, 2011
A-ha's that might've slipped past you
You can’t miss a wave that’s reshaping the restaurant business. Harder to spot are the ripples that could swell into powerful forces. Consider these recent developments, for instance:
‘Menu disclosure’ is redefined. The term was once synonymous with posting calorie counts and other nutritional metrics so consumers could make an informed choice. Now we’re seeing a secondary designation.
Amid all the hoopla over the opening of Chipotle’s ShopHouse Southeast Asian Kitchen was a little-noticed detail brought to light by the Washington Post: Not everything on the menu was what it purported to be. Two of the sauces for vegetarian were actually made with fish stock, a huge no-no to the more orthodox non-flesh-eaters.
As the Post subsequently reported, ShopHouse quickly rectified the situation by adding an asterisk to the menu listings, alerting customers that the sauces are non-vegetarian.
It must’ve been déjà vu all over again for the concept’s parent. About a week beforehand, a tweeter with a large following voiced 140 characters’ worth of indignation that Chipotle’s pinto beans were flavored with bacon. Co-CEO Steve Ells called the tweeter (he’s an editor of Maxim, the breasts-and-beer magazine), apologized, and explained that the menu description had been corrected.
Meanwhile, Wendy’s drew fire because of its switch to buttered hamburger buns for the new Dave’s Hot ‘n Juicy line. Websites pointed out that the butter could be a hazard to consumers who are allergic to dairy products, and faulted the chain for not flagging the newfound danger more clearly on its website.
Franchisors could be seriously ding’d by the tax man. It slipped past almost unnoticed, but KFC lost a landmark court decision this week that should worry every franchisor. The U.S. Supreme Court rebuffed an attempt by the Yum! Brans holding to keep Iowa from assessing it for state income taxes.
The franchisor pointed out that it doesn’t operate a single restaurant in the state; all the units there are franchise stores. It doesn’t even have a single employee.
But the Supreme Court rejected the appeal. KFC will have to pay the $250,000 that Iowa says it’s due in income taxes on the franchise royalties and fees that were channeled to chain headquarters in Kentucky.
Two days, two bankruptcies of Sun Capital holdings. Are economic realities catching up to the private-equity raiders?
No PE investor gobbled up as many restaurant brands before and during the Great Recession as Sun, whose portfolio extends from Captain D’s to Bar Louie. The acquisitions included stakes in Friendly’s and Real Mex, parent of the Chevys, El Torito and Acapulco chains, both of which are now being run under the scrutiny of a bankruptcy court. Sun is undoubtedly the owner of more concepts than any other entity in the business, and is likely one of the bigger operator-franchisors as well.
It’s become an industry parlor game to speculate about what Sun will do with those holdings. An IPO for a select chain? Or for several, packaged together? How about a sale to other PE companies? Or to a strategic buyer? Maybe some will be crunched up and sold piecemeal for their locations, the way an auto is sold for parts.
It’s safe to say that Sun didn’t buy anything with a hope of seeing it go bankrupt. What does that portend a company with that much vulnerability to a restaurant downturn on its books?
Looks as if the parlor game has just been updated.
‘Menu disclosure’ is redefined. The term was once synonymous with posting calorie counts and other nutritional metrics so consumers could make an informed choice. Now we’re seeing a secondary designation.
Amid all the hoopla over the opening of Chipotle’s ShopHouse Southeast Asian Kitchen was a little-noticed detail brought to light by the Washington Post: Not everything on the menu was what it purported to be. Two of the sauces for vegetarian were actually made with fish stock, a huge no-no to the more orthodox non-flesh-eaters.
As the Post subsequently reported, ShopHouse quickly rectified the situation by adding an asterisk to the menu listings, alerting customers that the sauces are non-vegetarian.
It must’ve been déjà vu all over again for the concept’s parent. About a week beforehand, a tweeter with a large following voiced 140 characters’ worth of indignation that Chipotle’s pinto beans were flavored with bacon. Co-CEO Steve Ells called the tweeter (he’s an editor of Maxim, the breasts-and-beer magazine), apologized, and explained that the menu description had been corrected.
Meanwhile, Wendy’s drew fire because of its switch to buttered hamburger buns for the new Dave’s Hot ‘n Juicy line. Websites pointed out that the butter could be a hazard to consumers who are allergic to dairy products, and faulted the chain for not flagging the newfound danger more clearly on its website.
Franchisors could be seriously ding’d by the tax man. It slipped past almost unnoticed, but KFC lost a landmark court decision this week that should worry every franchisor. The U.S. Supreme Court rebuffed an attempt by the Yum! Brans holding to keep Iowa from assessing it for state income taxes.
The franchisor pointed out that it doesn’t operate a single restaurant in the state; all the units there are franchise stores. It doesn’t even have a single employee.
But the Supreme Court rejected the appeal. KFC will have to pay the $250,000 that Iowa says it’s due in income taxes on the franchise royalties and fees that were channeled to chain headquarters in Kentucky.
Two days, two bankruptcies of Sun Capital holdings. Are economic realities catching up to the private-equity raiders?
No PE investor gobbled up as many restaurant brands before and during the Great Recession as Sun, whose portfolio extends from Captain D’s to Bar Louie. The acquisitions included stakes in Friendly’s and Real Mex, parent of the Chevys, El Torito and Acapulco chains, both of which are now being run under the scrutiny of a bankruptcy court. Sun is undoubtedly the owner of more concepts than any other entity in the business, and is likely one of the bigger operator-franchisors as well.
It’s become an industry parlor game to speculate about what Sun will do with those holdings. An IPO for a select chain? Or for several, packaged together? How about a sale to other PE companies? Or to a strategic buyer? Maybe some will be crunched up and sold piecemeal for their locations, the way an auto is sold for parts.
It’s safe to say that Sun didn’t buy anything with a hope of seeing it go bankrupt. What does that portend a company with that much vulnerability to a restaurant downturn on its books?
Looks as if the parlor game has just been updated.
Tuesday, December 7, 2010
Restaurant news you might've missed
BK has sweet treats for Brits, pink slips for Yanks
First there was the Whopper Bar, a more adult riff on the conventional Home of the Whopper. It focused on Whoppers, Whoppers and more Whoppers—sometimes combined into one dish (the “pizza” consists of three Whopper patties arrayed in a single layer, like pepperoni slices, on an oversized bun).
Now Burger King has unveiled another potential addition to its fold, hold the pickles, hold the lettuce. The freestanding Dessert Bar will feature BK-brand ice cream and mini-pancakes, according to the first report in the U.S. media.
The prototype is in London, which could keep it a European phenomenon. But Whopper Bars are already sprouting overseas.
The chain’s home office should have probably crowed louder about the venture. The ballyhoo might’ve drawn attention away from the news that BK’s new owner, Brazil-based 3G, is canning more than 400 people, just in time for the holidays. Reports of The King sharing a limo with Scrooge at the Dessert Bar opening have yet to be confirmed.
Friendly’s tries new menu & look
The venerable New England chain is reportedly spending $2 million to give its 17 restaurants in Albany, NY, a facelift and new food options. Details weren’t provided in the slew of local coverage, but one report did describe the new menu as “lighter.” That could be a good thing, judging from TV news coverage like this. Virtually every customer (and many of the servers) appears to be considerably overweight.
Among the items being tested are chicken wings, a turkey platter, a grilled chipotle-flavored chicken, and several new sandwiches, including a Caprese grilled-chicken option that packs just 400 calories. Otherwise, the least fattening of the trial choices is the smaller wings order, at 740 calories for six. But the menu does note that a grilled-chicken or vegetarian patty can replace the beef in any burger.
‘WARNING: Unroll at your own risk’
A Michigan courtroom may soon be turning a spotlight on a little-noticed restaurant danger: The toilet paper dispensers in the restrooms. A state court has cleared the way for a woman to pursue a lawsuit against a Texas Roadhouse in Detroit some three years after she suffered alleged injuries from a dispenser that had been left open. The woman says the lid of the device fell on her hand, breaking it.
‘Good gig, eh?’
A recent survey found that more than one in five Canadians found their first job at a restaurant. Apparently our neighbors to the North have a warmer picture of the business than we do. Seventy percent reportedly said the nation’s eateries are an important part of the economy, and 75% of the respondents who worked in restaurants characterized the experience as helpful in developing life skills. The study was sponsored by Kraft’s Canadian operation, so we doubt there were any questions about the loyalty that Starbucks has personified.
The importance of exorcising
We all know the locations: No matter what type of restaurant you put there, it bombs, usually quickly. Clearly the setting is cursed.
Rather than tempt the fates by meekly following four failures into a site in New York’s Chelsea area, the latest outlet of New York Burger Co. sought some divine help. It brought in a priest, a rabbi and a Buddhist spiritualist to bless the operation and stave off the demons of empty tables. Linda Blair has yet to put in an appearance, but plenty of reporters have, providing the newcomer with tremendous free publicity.
First there was the Whopper Bar, a more adult riff on the conventional Home of the Whopper. It focused on Whoppers, Whoppers and more Whoppers—sometimes combined into one dish (the “pizza” consists of three Whopper patties arrayed in a single layer, like pepperoni slices, on an oversized bun).
Now Burger King has unveiled another potential addition to its fold, hold the pickles, hold the lettuce. The freestanding Dessert Bar will feature BK-brand ice cream and mini-pancakes, according to the first report in the U.S. media.
The prototype is in London, which could keep it a European phenomenon. But Whopper Bars are already sprouting overseas.
The chain’s home office should have probably crowed louder about the venture. The ballyhoo might’ve drawn attention away from the news that BK’s new owner, Brazil-based 3G, is canning more than 400 people, just in time for the holidays. Reports of The King sharing a limo with Scrooge at the Dessert Bar opening have yet to be confirmed.
Friendly’s tries new menu & look
The venerable New England chain is reportedly spending $2 million to give its 17 restaurants in Albany, NY, a facelift and new food options. Details weren’t provided in the slew of local coverage, but one report did describe the new menu as “lighter.” That could be a good thing, judging from TV news coverage like this. Virtually every customer (and many of the servers) appears to be considerably overweight.
Among the items being tested are chicken wings, a turkey platter, a grilled chipotle-flavored chicken, and several new sandwiches, including a Caprese grilled-chicken option that packs just 400 calories. Otherwise, the least fattening of the trial choices is the smaller wings order, at 740 calories for six. But the menu does note that a grilled-chicken or vegetarian patty can replace the beef in any burger.
‘WARNING: Unroll at your own risk’
A Michigan courtroom may soon be turning a spotlight on a little-noticed restaurant danger: The toilet paper dispensers in the restrooms. A state court has cleared the way for a woman to pursue a lawsuit against a Texas Roadhouse in Detroit some three years after she suffered alleged injuries from a dispenser that had been left open. The woman says the lid of the device fell on her hand, breaking it.
‘Good gig, eh?’
A recent survey found that more than one in five Canadians found their first job at a restaurant. Apparently our neighbors to the North have a warmer picture of the business than we do. Seventy percent reportedly said the nation’s eateries are an important part of the economy, and 75% of the respondents who worked in restaurants characterized the experience as helpful in developing life skills. The study was sponsored by Kraft’s Canadian operation, so we doubt there were any questions about the loyalty that Starbucks has personified.
The importance of exorcising
We all know the locations: No matter what type of restaurant you put there, it bombs, usually quickly. Clearly the setting is cursed.
Rather than tempt the fates by meekly following four failures into a site in New York’s Chelsea area, the latest outlet of New York Burger Co. sought some divine help. It brought in a priest, a rabbi and a Buddhist spiritualist to bless the operation and stave off the demons of empty tables. Linda Blair has yet to put in an appearance, but plenty of reporters have, providing the newcomer with tremendous free publicity.
Saturday, June 12, 2010
Aren't they supposed to sell the food?
Uh-oh. If the restaurant industry is getting back on its feet, why are so many chains reverting to food giveaways, the traffic builder of choice during the downturn’s darkest days?
Today you can grab a free cup of Popeyes’ new cane-sugared sweet tea (translation for northerners: An iced tea that’s made with sugared water). Then again, maybe you’d prefer one of Taco Bell’s new Limeade Sparklers, available without charge if you download a coupon from the chain’s website.
Diabetics could really be in trouble if they’ve been scouting the deals. Friendly’s recently gave away a scoop of ice cream, and Mimi’s Café offered four free muffins on Wednesday to any patron who bought a breakfast.
Either giveaways are going to remain part of the marketing arsenal, or maybe traffic is softer than the numbers reveal.
Either way, it’s enough to make you hope for a two-for-one cocktail special.
Today you can grab a free cup of Popeyes’ new cane-sugared sweet tea (translation for northerners: An iced tea that’s made with sugared water). Then again, maybe you’d prefer one of Taco Bell’s new Limeade Sparklers, available without charge if you download a coupon from the chain’s website.
Diabetics could really be in trouble if they’ve been scouting the deals. Friendly’s recently gave away a scoop of ice cream, and Mimi’s Café offered four free muffins on Wednesday to any patron who bought a breakfast.
Either giveaways are going to remain part of the marketing arsenal, or maybe traffic is softer than the numbers reveal.
Either way, it’s enough to make you hope for a two-for-one cocktail special.
Tuesday, December 23, 2008
More (sea) changes at the top
This morning brought the news that Greg Burns, a leader of the O’Charley’s dinnerhouse chain for 25 years, will step down early next year as CEO and chairman. It’s the latest indication that a changing of the guard is quietly taking place in the restaurant industry as executives who spent a lifetime in the business surrender the helm to newer and presumably more mainstream talent.
O’Charley’s said it hasn’t yet chosen Burns’ successor. But look at some of the replacements that have been named for exiting long-timers. Nigel Travis is stepping into the CEO’s job at Dunkin’ Donuts’ parent company with deep experience in internet sales, international business and retail marketing. The internet wasn’t even known when the standout he’s succeeding, Jon Luther, was starting his career.
Wendy’s had a long tradition of putting operational specialists in the corner office, starting with Dave Thomas, continuing through the legendary Jim Near and the highly respected Gordon Teeter, and then ending with Jack Schussler. Leading the company since its acquisition by Arby’s owner is Roland Smith, a veteran of the golf, bowling, soft drink and pharmaceutical industries. He’s a West Point grad.
Not all of the long-timers exiting top posts are being followed by newcomers with such extensive resumes. Dick Frank, for example, is surrendering his leadership of Chuck E. Cheese to Mike Magusiak, a protégée and longtime exec of the pizza-and-games chain. But Magusiak has a background in finance, having served as CFO. Frank was hailed for his operational and marketing know-how.
And not all the replacements have been named yet. Big Boy, for instance, said it’s still searching for a replacement for Tony Michaels, its longtime leader and an even longer-time veteran of the restaurant industry, including stints with Marriott.
The list of other industry greybeards to step down in recent months include Russ Owens, the casual-dining vet who had been leading P.F. Chang’s Pei Wei Asian Diner fast-casual operation; and Paul Motenko and Jerry Hennessey, the co-founders of BJ’s, who have left the board of that seemingly recession-resistant frontrunner to rev up for a new venture.
I’d be remiss if I didn’t note the counter-current of long-timers getting back into the business. Yesterday, for instance, the new owners of Romano’s Macaroni Grill released the stunning news that the chain would now be led by Olive Garden vet Brad Blum, a brilliant move on the buyer’s part. And Ned Lidvall, perhaps best known for his leadership of Rock Bottom Breweries, will now be leading Friendly’s.
O’Charley’s said it hasn’t yet chosen Burns’ successor. But look at some of the replacements that have been named for exiting long-timers. Nigel Travis is stepping into the CEO’s job at Dunkin’ Donuts’ parent company with deep experience in internet sales, international business and retail marketing. The internet wasn’t even known when the standout he’s succeeding, Jon Luther, was starting his career.
Wendy’s had a long tradition of putting operational specialists in the corner office, starting with Dave Thomas, continuing through the legendary Jim Near and the highly respected Gordon Teeter, and then ending with Jack Schussler. Leading the company since its acquisition by Arby’s owner is Roland Smith, a veteran of the golf, bowling, soft drink and pharmaceutical industries. He’s a West Point grad.
Not all of the long-timers exiting top posts are being followed by newcomers with such extensive resumes. Dick Frank, for example, is surrendering his leadership of Chuck E. Cheese to Mike Magusiak, a protégée and longtime exec of the pizza-and-games chain. But Magusiak has a background in finance, having served as CFO. Frank was hailed for his operational and marketing know-how.
And not all the replacements have been named yet. Big Boy, for instance, said it’s still searching for a replacement for Tony Michaels, its longtime leader and an even longer-time veteran of the restaurant industry, including stints with Marriott.
The list of other industry greybeards to step down in recent months include Russ Owens, the casual-dining vet who had been leading P.F. Chang’s Pei Wei Asian Diner fast-casual operation; and Paul Motenko and Jerry Hennessey, the co-founders of BJ’s, who have left the board of that seemingly recession-resistant frontrunner to rev up for a new venture.
I’d be remiss if I didn’t note the counter-current of long-timers getting back into the business. Yesterday, for instance, the new owners of Romano’s Macaroni Grill released the stunning news that the chain would now be led by Olive Garden vet Brad Blum, a brilliant move on the buyer’s part. And Ned Lidvall, perhaps best known for his leadership of Rock Bottom Breweries, will now be leading Friendly’s.
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