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Dear Loyal Readers:

As this is the final full 2018 edition of American Recruiters Global Foodservice News, on behalf of my Associates and myself, THANK YOU to our clients and candidates for allowing us to be part of your success. We value your support and hope that we continue to earn your trust. Let us also wish all of you a very happy and safe holiday season. To those that have family members serving in the military and will be separated during the holidays, know that our thoughts and prayers are with you and your loved one. As we wrap up the end of the year, most of us have been and continue to be involved in strategic planning for the future. I would like to share with you two thoughts from an article that focused on Keys to Improving Strategy Discussions authored by noted management guru Art Petty. Here are a few of his suggestions:

* Strive for Beginner’s Mind Thinking and Ask for Outside Help: The natural tendency of most strategic initiatives is to rubber-stamp the status quo and perhaps propose incremental changes to what’s been working. The Beginner’s Mind concept is powerful for these circumstances where what used to work no longer hunts. Of course, it’s darned hard to do, so consider adding in objective outside individuals who don’t have the same base of industry, customer, and business experience as the core team members do. This really opens some amazing dialog.

* Have a Game Plan for Decision-Making: Ultimately, a strategy is about making decisions on what to do and as importantly, what not to do. Some teams run into a brick wall here. Teams that either make it through, over or under the wall, understand the importance of decision-making. Again not an easy management function but that’s why you earn the big bucks!!

One decision that is easy to make and will have a great outcome is to Enjoy the Holidays and this edition of our American Recruiters Global Foodservice News. Again, on behalf of me and my Associates have a safe and healthy Holiday Season.

 

Craig Wilson

President

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Middleby Acquires Crown Food Service Equipment

The Middleby Corporation announced the acquisition of Crown Food Service Equipment, Ltd., a leading design and manufacturer of steam cooking equipment for the commercial foodservice industry. The Toronto, Canada based company was founded by the late Mr. Josef Stritzl nearly forty years ago and has approximately $20 million in annual revenues. “Josef Stritzl was a pioneer in the development of the steam and kettle cooking industry as well as a longtime friend and respected business colleague. Our strong and deep rooted relationship with the Stritzl family goes back for more than twenty-five years,” said Selim A. Bassoul, Chairman and CEO of The Middleby Corporation. “The Crown acquisition complements other recent strategic investments in the steam cooking category, including the acquisitions of Firex and Market Forge. With this collection of brands and products, the Middleby steam platform is positioned with industry leading innovations and customer solutions including unique offerings that address customer demands for labor savings, menu flexibility and automation, while also supporting growing foodservice trends of sous vide-cooking, organic, and health awareness. With this acquisition, I am also pleased to announce Group President John Perruccio will oversee the Middleby steam group, in addition to continuing responsibilities for the Southbend and Star brands. John will lead a unified and focused strategy to bring this complement of brands and product offerings to the marketplace, which we believe will allow us to capture significant growth opportunities in the steam cooking category.” – Source: The Middleby Corporation.

The Madera Group Secures Nearly $21M in Funding

Multi-concept restaurant operator The Madera Group has secured nearly $21 million in funding from Breakwater Management to accelerate growth of its chef-driven Mexican food brands. Madera’s brands include fast-casual Tocaya Organica and fine-dining concepts Toca Madera and Casa Madera. Casa Madera is a coastal lounge concept slated to open its first location in Dubai in partnership with Caesars Entertainment. Breakwater’s $20.9 million investment will support Madera’s aggressive plan to more than double in size by adding 13 locations by the end of next year. “This transaction provides us with capital to continue our rapid growth and further our goal of delivering elevated dining experiences that make eating well effortless,” company co-founder Amrou Manaseer said in a statement. Manaseer and Tosh Berman founded the company in 2013 and opened the flagship Toca Madera in West Hollywood two years later. In 2016, the West Hollywood, Calif.-based company opened Tocaya Organica in Venice, Calif. The counter service menu features salads, tacos, bowls and burritos made with upscale ingredients such as sweet potato bravas and sautéed Brussels sprouts. The fast-casual concept has grown to 10 locations concentrated mostly in Los Angeles and San Diego. The first Arizona outlet opened this month in Scottsdale.  The brand, which uses locally sourced produce, sustainable ingredients and meats and fish free of hormones, will see a bulk of the growth. More locations are planned for San Diego, Los Angeles and Arizona. Two Toca Madera locations are slated to open in Arizona and Dubai. Breakwater’s other restaurant investments include fast-casual vegan chain Veggie Grill, which is also based in Southern California. Saif Mansour, managing partner at Breakwater, said The Madera Group has done a “remarkable job” developing Tocaya Organica and Toca Madera. “We are delighted to support them as they continue to expand their innovative dining concepts,” he said in a statement. – Source: The Madera Group.

Restaurants Lodge Court Challenge of Predictive Scheduling

A coalition of restaurant groups have filed a legal challenge of New York City’s model advance-scheduling law, arguing in a complaint filed with the state’s supreme court that the measure has illegally cost quick-service operators hundreds of thousands of dollars in penalties while limiting their ability to hire. The measure seeks to have the regulations overturned on the grounds they are pre-empted by state law.

The scheduling component of the law requires quick-service restaurants to set staff schedules at least two weeks in advance and to pay a penalty for any changes made afterward. Similar predictive-scheduling mandates have been adopted or proposed in a number of jurisdictions across the nation. Most of those are binding on all restaurants, not just quick-service places. The plaintiffs in the action also contested the scheduling law’s related stipulation that current employees be given extra shifts before new employees are hired. That facet of the measure forces employers to award shifts to employees regardless of their level of competence. The requirements were part of a package passed in 2017 called the Fair Workweek Law (FWWL), a measure proposed and strongly supported by New York Mayor Bill de Blasio.  The package was intended to halt practices that were viewed as exploitative, such as requiring employees to work a closing shift and then reopen for the morning rush a few hours later, and to provide more income predictability for fast-food workers. “Under the guise of guaranteeing ‘predictive’ scheduling for restaurant employees, the FWWL has caused great harm to Plaintiffs’ member employers in New York City’s fast food industry, causing them to incur enormous penalties and significant administrative costs, and interfering with their ability to schedule employees so as to best serve the constantly shifting needs of consumers,” the complaint reads. Enforcement began in November 2017.

The obligations fell on any restaurant that shares a common identity with at least 29 other establishments nationwide. Qualifying quick-service restaurants are charged $10 for every change made to an employee’s schedule from seven to 14 days before the start of the shift, $20 for every cut in hours or shift cancellation made in that time frame, $45 for any change made between one and seven days before the start of the affected shift and $75 for any change made less than 24 hours before the shift was scheduled to start, including a cancellation of the shift. The plaintiffs in the measure are the Restaurant Law Center, the litigation arm of the National Restaurant Association; the International Franchise Association; and the New York State Restaurant Association. Their complaint, filed in the State Supreme Court of the State of New York, requires the City of New York to respond within 30 days. “None of the harms caused by the FWWL should be permitted to continue, because State law governing workplace schedules of private businesses, including fast food restaurants, has pre-empted the field of workplace scheduling regulation and minimum employee compensation,” the complaint argues. – Source: Restaurant Business.

Glassdoor’s List of the 100 Best Places to Work in 2019

Only three restaurant companies were included in Glassdoor’s list of the 100 best places to work in 2019: In-N-Out Burger, Kimpton Hotels & Restaurants and Raising Cane’s Chicken Fingers. In-N-Out was the standout, finishing No. 3 in the ranking of companies with at least 1,000 employers, behind Bain & Co., the former owner of Domino’s Pizza, and Zoom Video Communications, a company that provides video and web conferencing services. The burger chain was chosen on the basis of employee input.

Comments on the Glassdoor site portray In-N-Out as an employee-focused workplace that pays well (starting wages are $11 an hour) and promotes from within to support its growth. A culture of appreciation, along with high demands, was also saluted by staffers. At No. 76 is Kimpton, a lodging and restaurant operator known for its outstanding benefits, which include health insurance for pets and bereavement leave for the household cat or dog. Employee testimonials posted on Glassdoor also praised the company’s culture of empowerment, where decision-making is pushed down to the line level. “If you are looking for an organization who has your back, supports you, develops you and trusts your entrepreneurial spirit then this is where you want to be,” read one comment. Raising Cane’s landed the No. 96 slot. Employee reviewers praised the company for cultivating a culture of appreciation. The reinforcers of that impression, as cited by a posting staff member: “Competitive pay, paid days off for holidays, bonuses every month and gifts throughout the year to show their appreciation for your hard work.” The rankings are based on employee evaluations of their jobs, work environment and employer practices for the preceding year. A separate ranking evaluated companies with fewer than 1,000 employees. No restaurant company finished within the top 50 list. Glassdoor.com is a job posting and employer review website that also provides research based on the input of jobholders and workforce authorities. – Source: Restaurant Business.

Charleys Hopes 600 Locations is one Milestone of Many

With Americans love for chicken on the rise, Charleys wanted to cash in. Since its founding more than 30 years ago, Charleys Philly Steaks has expanded along a robust non-traditional path. Is there one in every major mall in America? The reality is probably not that far off. In September, the chain, started in 1986, celebrated its 600th opening when it debuted in Lancaster, Ohio. As much as this was a milestone for Charleys—especially considering it has called Ohio home for the last 32 years—the location was as much an indicator of what’s to come as it was of what the legacy brand has accomplished. The store became only the second Charleys nationwide to feature its new menu concept with chicken wings and tenders alongside Philly cheesesteaks. It was also just the second restaurant system wide to feature a drive thru, as well as Charleys’ new warehouse/farm-style interior design, which combines raw industrial elements with organic finishes. This updated menu and design figures to be a focal point as Charleys continues expanding across the country. But even that growth chart is shifting significantly. The chain plans to open an additional 400 stores and hit the 1,000-restaurant mark by 2022. However, the vast majority of these new Charleys locations are targeted for strip centers.

This coming year will mark the first time in Charleys’ history that strip center development exceeds mall growth. Charley Shin, the chain’s chief executive, says that, of the 600 locations, about 420 or so are currently in malls. About another 100 are military locations and, by summer, 70–80 will be houses in strip centers. There are several reasons Charleys is shifting its direction. The health of America’s malls isn’t necessarily one of them, though. Shin says he’s seen A malls get stronger and B malls ramp up. It’s really the C malls that are floundering. That’s a phenomenon reported by restaurants and retailers nationwide. It’s one of the reasons The Cheesecake Factory has stood on solid footing with its center locations—the fact it’s historically targeted top-tier mall destinations over sub-par ones with cheaper rents.

For the first time in its history, 2019 will have more strip-center development than mall growth for Charleys. The new design is a more whimsical, inviting take on the classic brand. “Actually our business has been very strong in the mall environment,” Shin says. “We had same-store sales grow mid-single digits [this past year], which is much stronger than industry average.” The strip center and standalone locations present an entirely different challenge. Mall dining tends to be an impulse decision. Customers are there for another reason and expect to grab a bite, or not. Where they choose isn’t necessarily defined when they get into the car. While that spontaneity can be true of non-mall restaurants as well, it’s nowhere near as frequent. Shin says the strip center Charleys have to become destinations. That’s a challenge, but it also has its perks. “Customers can access our cheesesteaks now a lot more readily than going, parking in the mall, and walking all the way through the mall to the food court. We’re actually making it a lot easier for customers to visit us.”

That benefit is balanced by losing guaranteed foot traffic. Shin says the marketing effort is much more focused and intense at strip center locations. They’ll launch a social campaign around a 3-mile radius about a week before opening. Charleys will also typically purchase a billboard in the area a month prior to get the name out and build anticipation. And Charleys’ growth trajectory, which calls for about 70 units next year as opposed to the 40–50 its tracked in recent years, is circling the brand’s strongest markets, including Florida, Texas, and California. As for the menu, Charleys has long offered chicken as part of its Chicken Philly menu offerings. A few years back, Shin says, he was looking at protein consumption and realized the brand should expand this offering into other tiers. He cited a forecast that calls for chicken consumption in the U.S. to almost equal pork and beef combined in the future. Per capita U.S. beef consumption peaked in the 1970s and has since declined by about one-third, according to USDA data on food availability. Pork consumption stayed mostly constant over the same period, while consumption of chicken more than doubled. Charleys’ tried the chicken finger concept about three years ago. Shin says the chicken finger business boosted double-digits. He still thought it could do better. That’s when further study led him to the bone-in chicken wing. There’s a lot of data out there about just how many chicken wings Americans eat, especially in regards to the Super Bowl. But one 2017 study, from Moore’s Marinades & Sauces, suggested the average meat eater will devour roughly 18,000 chicken wings in their lifetime. About 1.33 billion chicken wings were consumed during last year’s Super Bowl, by the way. And it goes without saying that entire restaurant chains have been built on this chicken preference. Charleys’ new menu features wings tossed-to-order with 10 chef-inspired flavors ranging from Angry Ghost and Nashville Hot to milder options like Zesty Lemon-Lime Rub and Sweet Teriyaki. Customers can order Classic Wings or Boneless Wings and choose from new sides including celery sticks, coleslaw, baked beans or Texas toast. “It was almost a year of research and now it’s showing great results,” Shin says. Moving forward, Shin believes the new model and menu will only make the brand’s expansion more impactful. “We’re just very thankful for what we’ve been able to do with 600 units,” he says. “And we’re looking forward to growing to 1,000 units with this improved format.” Source: QSR.

Flynn Restaurant Group acquires 368 Arby’s

Flynn Restaurant Group L.P. has acquired 368 Arby’s from U.S. Beef Corp., expanding its casual-dining and quick-service portfolio of franchised concepts to $2.3 billion in annual sales, the company said. The acquisition by San Francisco-based Flynn’s wholly owned RB American Group LLC brings the parent company’s restaurant total to 1,245 in 33 states, including locations of casual-dining Applebee’s Neighborhood Grill & Bar, fast-casual Panera Bread and quick-service Taco Bell. Terms of the deal were not disclosed. The deal with Tulsa, Okla.-based U.S. Beef will add about $400 million in annual sales to Flynn’s current $1.9 billion, the company said. U.S. Beef’s founders — Bob Davis and his son, Jeff Davis — opened their first Arby’s in 1969 in Tulsa, and the Davis family later expanded the brand to nine Midwest and Western states. Greg Flynn, left, Flynn Restaurant Group’s founder, chairman and CEO, said: “The Davis family and their team of great operators built a fantastic business over 50 years, and we’re privileged to be the ones to shepherd the U.S. Beef restaurants into their next phase.” Flynn, in a statement, added that the Arby’s brand aligned with Flynn Restaurant Group’s existing concepts. “Benefiting from very strong leadership, the Arby’s brand has achieved great momentum these past few years,” he said, “and we are truly excited about the opportunities that lie ahead.”  Flynn Restaurant Group’s subsidiaries include Apple American Group LLC, the largest Applebee’s franchisee; Pan American Group LLC, the second largest Panera Bread franchisee; and Bell American Group, the third largest Taco Bell franchisee.  The company currently has $1.9 billion in annual sales across those three brands, it said, which include 460 Applebee’s, 280 Taco Bell and related Yum! Brand restaurants and 135 Panera Bread bakery-cafes. Found by Flynn in 1999, the restaurant group has grown into the nation’s largest franchise restaurant operator and employs about 50,000 people. Recent deals included the July 2017 Pan American Group purchase of 34 Panera Bread locations in Kansas and Missouri from Wichita, Kan.-based Original Bread Inc. Founder Flynn was the first franchisee ever to be honored with Nation’s Restaurant News’ Operator of the Year award in 2016. To fund the acquisitions, the Flynn Restaurant Group pioneered new financing streams, including from private-equity firms, receiving an investment from Goldman Sachs in 2001. In 2014, the company was one of the first restaurant groups to tap into institutional portfolios with a $300 million investment from the Ontario Teachers’ Pension Plan. Arby’s, founded in 1964, has more than 3,300 restaurants worldwide and is a division of Atlanta-based Inspire Brands. In Nation’s Restaurant News’ Top 200 this year, U.S. Beef reported domestic system-wide sales of $374 million for the fiscal year ended December 2017, up 2.7 percent from the prior year. – Source: NRN.

Applebee’s no Longer Fully Franchised After 69-Unit Buyout

Applebee’s has taken a step back into restaurant ownership with the purchase of 69 locations from a North Carolina franchisee, marking the first company-owned restaurants in the Applebee’s system in three years. The company said Friday it had closed on a deal to buy 69 Applebee’s from Raleigh, N.C., franchisee Apple Gold Group. The restaurants, which are located in North and South Carolina, will be operated by Applebee’s COO Kevin Carroll. The deal creates the first company-owned restaurants in the Applebee’s system since 2015. For now, the restaurants will remain the only company stores in the chain, the Glendale, Calif.-based company said, adding that it would not rule out refranchising the stores in the future. Apple Gold could not be reached for comment on the deal. The move comes amid the end of a monthslong legal dispute between Applebee’s and bankrupt franchisee RMH Franchise Holdings Inc., during which the company had said it was “willing and able to start the process of taking over restaurants, should that be the right resolution.” The settlement, announced Friday, called for RMH, the brand’s second-largest franchisee, to pay the franchisor all past due royalty and advertising fees, which were at the center of the legal dispute. Applebee’s will also receive reimbursement for termination fees tied to restaurant closures.  Glendale, Calif.-based Dine Brands did not disclose the value of the settlement with the Atlanta-based franchisee. RMH said it would “retain ownership of all of its 135 restaurants” as a result of the settlement, did would not disclose any additional details. According to the Wall Street Journal the settlement included a $12.5 million payment and an agreement not to close more than five additional locations. All other outstanding litigation between the two companies have been dismissed, Dine Brands said. “We’re pleased to have come to a resolution with RMH and its owners,” Applebee’s president John Cywinski said in a statement. “We remain confident and look forward to 2019.”

Applebee’s parent initially sought control of RMH’s 146 Applebee’s restaurants, arguing the struggling franchisee, who filed for Ch. 11 bankruptcy in May, had effectively terminated its contract by refusing to pay royalty fees. But in the fall, a court ruledthe franchisee can continue to operate its Applebee’s locations. As of its latest quarterly report, Applebee’s had more than 1,856 franchise restaurants. Of those, 1,707 operated in the U.S. For the nine months ended Sept. 30, Applebee’s franchisees closed 85 restaurants and opened five. In the third quarter, Applebee’s domestic system-wide same-restaurant sales increased 7.7 percent. – Source: NRN.

Jollibee Foods Corp. Acquires Final Stake in Smashburger. Jollibee’s Pursuit of Smashburger is Complete

After taking big stakes in Smashburger over the course of three years, Asia’s largest restaurant operator, Jollibee Foods Corp., said it has acquired the remaining 15 percent stake in the Denver-based better burger chain. Jollibee, based in the Philippines, operates more than 4,300 restaurants around the world under various banners including its namesake fried chicken fast food chain. The company did not disclose the value of deal, which also includes a leadership change for the fast-casual chain founded 11 years ago in Denver by Tom Ryan. Ryan will remain CEO. However, he will take on the additional title of chief product development advisor of JFC Global. Jollibee veteran executive Jose “Pepot” Miñana has been tapped as Smashburger’s new president. He will oversee the daily operations of the company, which operates more than 350 corporate and franchise stores in 38 states. Miñana was most recently president of JFC North America. As chief product development advisor, Ryan “will focus on strengthening taste and quality aspects across key JFC brands as well as enhancing JFC brands’ relevance across global markets,” the company said. The ownership change comes three years after Jollibee took a 40 percent stake in Smashburger in a deal valued at $335 million. In February, Jollibee snapped up an additional 45 percent of Smashburger for $100 million. Prior to the latest deal, Smashburger’s remaining 15 percent was owned by Black Shamrock Partners, a private equity firm formerly known as Consumer Concept Group & Affiliates.  The investment company, where Ryan is a partner, rebranded as Black Shamrock in August. Rick Schaden, co-founder of Black Shamrock, said the company is “thrilled to complete this transaction with a global restaurant powerhouse.” “We have no doubt that with their leadership, the brand will continue to succeed and grow for years to come,” said Schaden, who is also the founder of the Quiznos sandwich chain. Black Shamrock also owns Tom’s Urban, an “eatertainment” concept with four locations in Los Angeles, Las Vegas, Connecticut and Portland. A fifth location is opening soon at the Denver International Airport. – Source: NRN.

The Cheesecake Factory Opens New Restaurants in Texas and Tennessee

The Cheesecake Factory, known for its extensive menu, generous portions and legendary desserts, today announced the opening of its newest restaurants in Chattanooga, Tennessee and Lubbock, Texas. With more than 250 menu selections including Skinny Licious dishes with 590 calories or less and Saturday and Sunday Brunch—handmade, in-house with fresh ingredients—and more than 50 signature cheesecakes and desserts, The Cheesecake Factory’s opening provides exciting new choices for shoppers and area residents. Featuring imported limestone floors, custom wood columns, hand painted murals and modern lighting, the new restaurants include the distinctive and contemporary décor that is as creative and imaginative as The Cheesecake Factory’s extensive menu. The Cheesecake Factory of Chattanooga is located at 2084 Hamilton Place Blvd., Chattanooga, Tennessee. The restaurant opens at 11:30 a.m. Monday through Friday, and at 10:00 a.m. Saturday through Sunday. The Cheesecake Factory of Lubbock is located at 6014 Slide Road, Lubbock, Texas. The restaurant opens at 11:30 a.m. Monday through Friday, and at 10:00 a.m. Saturday through Sunday. – Source: fsrmagazine.com.

The Culinary Institute of America Launches First Premium Membership Service

Members receive VIP access to: The CIA’s library of hundreds of technique videos, filled with tips and instructions to help hone your skills or learn new ones. Achieve professional results in the comfort of your own home. Archived interviews and cooking demonstrations with world-famous chefs of yesterday and today as they showcase their craft in the kitchen and provide insights that stand the test of time. Online video demos with CIA chefs and alumni. Learn directly from the chefs, live or on your own time. A host of the CIA’s quintessential recipes. Never before available online, the CIA opens its time-tested recipe collection. From quick and easy suppers to meals that challenge even a super-foodie, it’s all in this curated collection—along with menu tips, simple substitutions, and creative uses of leftovers. Personalized recipe database. Members can save their favorites to their own recipe box. Access to the CIA’s e-book library, for even more inspiration. Early enrollment and registration to CIA Boot Camps and special events at Copia, plus priority reservations at all CIA restaurants. Discounts to Boot Camps; CIA restaurants; the Spice Islands Marketplace at Greystone in St. Helena, CA; the Store at CIA Copia in Napa, CA; and the online store. “DISH puts more than 70 years of experience from the world’s premier culinary college in the hands of foodies,” says CIA Associate Vice President Susan Cussen. “We’ve created DISH for food and wine enthusiasts who know that creating a great meal is a labor of love. For people as passionate about food as we are, DISH provides the knowledge and skills for enjoyable and successful cooking and dining experiences.” – Source: fsrmagazine.

Dave & Buster’s to Test Fast-Casual Platform

After 36 years as a big-box casual-dining and gaming destination, Dave & Buster’s Entertainment Inc. by the end of the year will test its first fast-casual foodservice offering – a street-tacos-oriented concept called “T&T Tacos,” executives said. “We are on track to test our first fast-casual offering,” said Brian Jenkins, Dave & Buster’s CEO, in a second-quarter earnings call Friday with analysts. The first unit of the fast-casual concept, which has so far been named T&T Tacos, will open by the end of year with a menu based on street tacos typically sold from a food truck, Jenkins said. It will open in a converted special-event/functions room at a Dave & Buster’s restaurant in its headquarters city of Dallas. “We know that there is at least some portion of our guests that don’t want the casual-dining experience,” he said. “They don’t want to take the time. They want to play their games and don’t want that time commitment.” The menu will be based essentially on a food truck taco offering, he said, and it will be located next to the arcade. “Our research shows that what resonates, particularly with Millennials, are street tacos,” Jenkins noted. “We are going to test a twisted-and-traditional food truck fast-casual concept.

The goal of the fast-casual foodservice test would be to increase penetration, he said, adding that the company will evaluate the performance and then make the decision to roll it out.” The company has also been reducing the size of its casual-dining menu, Jenkins said. “We’re working hard to simplify the menu,” Jenkins said. “We cut about 20 percent off earlier in the year.” The streamlining process is continuing, he added, and the brand rolled out all-natural chicken and will be upgrading steaks later in the year. “Speed of service is definitely a focus for us,” he said. “We have some fairly complex dishes.” In the second quarter, which ended Aug. 5, Dave & Buster’s also debuted its first virtual-reality games, tying the new attraction into the summer release of the movie “Jurassic World: Fallen Kingdom.” Some Dave & Buster’s locations have two of the new “Jurassic World VR Expedition” games, and they are proprietary to the brand, he said. For the quarter ended Aug. 5, Dave & Buster’s net income rose 11.3 percent to $33.8 million, or 84 cents a share, from $30.4 million, or 71 cents a share, in the prior-year period. Revenues grew 13.7 percent, to $319.2 million, from $280.8 million in same quarter last year.  Food and beverage revenues rose 9.7 percent to $130.2 million from $118.7 million in the prior year. Same-store sales in the quarter declined 2.4 percent. Dave & Buster’s, founded in 1982, owns and operates 117 venues in North America. The company has locations in 38 states as well as Canada and Puerto Rico. Source: NRN.

Chipotle Adds Two to Leadership Team

Chipotle Mexican Grill, Inc. has filled out its leadership team with the addition of two executives. Roger E. Theodoredis joins the company as chief legal officer, and Tabassum Zalotrawala has been named chief development officer. Both will report to Brian R. Niccol, chief executive officer of Chipotle Mexican Grill. Mr. Theodoredis most recently was general secretary at Danone North America with responsibility for legal, public affairs, communications, scientific affairs and corporate security. Previously, he held various legal roles at WhiteWave Foods Co., Mead Johnson Nutritionals and Chiquita Brands International. Ms. Zalotrawala joins the company from Panda Restaurant Group, where she was chief development officer and vice-president of design, construction, facilities and strategic sourcing. Prior to that, she held roles focusing on store development and franchisee support at Arby’s Restaurant Group. “I am energized about having such a world-class executive leadership team in place to accelerate our strategic goals,” Mr. Niccol said. “Roger and Tabassum are perfect additions to the team, and their experience will be essential as Chipotle focuses on winning today and cultivating a better future. I’m confident that this team will lead Chipotle’s culture of purpose, innovation, and accountability to deliver new levels of growth and value for customers and shareholders.”  — Source: Food Business News.

Jack in the Box Exploring Sale

Jack in the Box Inc. said it is exploring a range of financial strategies to maximize shareholder value, including a possible sale of the San Diego-based burger company. In a brief regulatory filing, Jack in the Box said it “has had discussions with potential buyers; however, it noted that there can be no assurance that the exploration of strategic and financing alternatives will result in a transaction.” “In the absence of a strategic transaction,” Jack in the Box said it will move forward with its previously announced plan “to have a new capital structure in place by the end of the first half of fiscal 2019. That capital structure could include, among other things, a securitization or bond issuance.” The company said it would not comment any further. The announcement comes amid growing unrest among a majority of the chain’s franchisees. The National Jack in the Box Franchisee Association issued a vote of confidence of CEO Leonard Comma this year. The group, which represents franchise owners who operate about 2,000 of the brand’s more than 2,200 restaurants, have also filed a complaint with California regulators about the chain’s recent restructuring of its real estate portfolio.  The restructuring was being done reportedly to increase the chain’s credit worthiness and to secure new financing. A potential sale of the company comes the same year Jack in th Box unloaded Qdoba in a $305 million cash deal with Apollo Global Management.  That transaction ended the burger chain’s 15-year ownership of the fast-casual Mexican brand. The sale was aimed at enhancing shareholder value, while allowing the brand to focus solely on its own asset-light business, which continues to stumble. In its latest quarter, ended Sept. 30, Jack in the Box reported a 0.5-percent increase in systemwide same-store sales. Total revenue for the quarter declined to $177.5 million compared to $232.1 million for the same quarter last year. In conference calls with investors, the company said it would be experimenting with streamlined menus, adding new equipment, focusing on value bundles and overhauling its drive-thrus to increase same-store sales. Shares of Jack in the Box jumped as much as 6 percent early Monday on news of the company’s sale. – Source: NRN.

Mixing Tech Improves Sanitation

Sanitation will always be top-of-mind for bakers to ensure the food coming out of their facilities is safe. Although most batter-based products go through a kill step, bakers must still keep the mixer as sanitary as possible. It’s reassuring to have all bases covered, especially for aerated products that don’t travel through the oven. “What is critically important is aerated products that don’t go through a kill step,” said Kevin Wilkinson, North American sales, Tonelli Group. “If we have a dairy product like a whipped topping that doesn’t go through a kill step, you have to be concerned about bacterial contamination. Therefore, the clean-in-place (CIP) system is critically important.” Sanitation and ease-of-cleaning has become such a concern that CIP is standard on many batter mixers, and it remains one of the top drivers for equipment innovation. “CIP cleaning systems are common and frankly standard features in all our equipment,” Mr. Wilkinson said. The components that come into contact with the batter are CIP. The mixer is built with all stainless steel and sealed water tight enclosures making it easy to sanitize. E.T. Oakes offers a dual-purpose metering/transfer pump on its mixers that can not only be used for the process but also for CIP. “We have found this to be a great solution to reduce cleaning and sanitation time and, in many cases, reduce or eliminate the need to take things apart for cleaning,” said Bob Peck, vice-president, E.T. Oakes Corp. VMI’s mobile CIP system can be programmed to run several different cycles of automatic cleaning. “For a simple splash, whether cleaning with or without detergent products, the VMI mobile CIP connects easily and adapts to all types of products depending on the complexity of cleaning,” said Terry Bartsch, president and chief executive officer of VMI North America. Shaffer’s mixers run water through to clean the bowl after batter is drained out through the pump. The mixer’s CIP system can be programmed to automatically clean between cycles or batches of different varieties. A head will deploy from the top of the mixer into the bowl and rotate throughout to clean it. “As we’re doing that, the agitator can go around and get a very clean bowl,” said Andrew McGhie, director of sales, Shaffer, a Bundy Baking Solution. Sanitary design should make the cleaning process not only effective but also efficient. “Sanitary design is important, but the speed at which it takes to clean it is now becoming the next frontier,” he said. Much of Topos Mondial’s innovation revolves around this idea. The company offers CIP spray balls and a CIP spray head system. “You can hit a button, walk away and come back later, and the whole bowl and upper head will have been cleaned automatically,” said Damian Morabito, president, Topos Mondial. Both systems were designed to quickly turn around the sanitation cycle of a mixer. Other improvements from Topos Mondial include granting the sanitation team access to the mixer’s main column for cleaning. Operators can now remove guards without tools, simplifying that process and speeding it up. A benefit to VMI’s mobile CIP is its efficiency. The system can clean the mixer three times faster than other cleaning methods, Mr. Bartsch suggested. “The efficiency of cleaning is an essential aspect for the productivity of this type of process,” he said. “Providing more production uptime, limiting water consumption and detergents, and energy usage are critical points that can weigh very heavily on the profitability of an investment, for processes with frequent changeovers.” – Source: Food Business News/Topos Mondial.

U.S.D.A. Researchers Downplay Validity of Antimicrobial Resistance

Antibiotics don’t affect the levels of antimicrobial resistance in ground beef, according to a new study conducted by U.S. Department of Agriculture researchers that appeared in the Journal of Food Protection. Antimicrobial use in U.S. cattle production has “minimal to no impact on (antimicrobial resistance) AMR in the resident bacteria,” the study said. The World Health Organization and other public health groups have called for limits on the use of antibiotics in livestock and poultry, arguing that widespread use of these drugs for growth promotion and disease prevention in healthy animals contributes to the emergence of drug-resistant pathogens, which can be transmitted to humans through meat, according to the center. That concern has resulted in growing consumer demand for meat raised without the use of medically important antibiotics. The biggest impact has been seen in the poultry industry, as several major chain restaurants and poultry producers have committed to removing medically important antibiotics from the supply chain. Advocates for antibiotic-free meat are now pushing the beef and pork industries to make similar changes. But the authors of the study say there has been little peer-reviewed research that supports claims that meat products raised without antibiotics harbor lower levels of antibiotic-resistant bacteria, and most of it involves poultry. They say their findings suggest those claims may not be warranted for ground beef. – Source: Food Business News.

McDonald’s Moves Toward Antibiotic Reduction in Beef

McDonald’s Corp. has unveiled a new beef antibiotic policy that will apply to 85% of its global beef supply chain. The company developed this policy over the last year and a half while working with veterinarians, public health leaders and the beef producers responsible for the health of animals. “McDonald’s believes antibiotic resistance is a critical public health issue, and we take seriously our unique position to use our scale for good to continue to address this challenge,” said Keith Kenny, global vice-president for sustainability at McDonald’s. “We are excited to partner with our beef supply chain around the world to accelerate the responsible use of antibiotics, whilst continuing to look after the health and welfare of those animals in our supply chain.”

The fast-food chain committed to specific targets to remove antibiotics from the supply chain, including: Partnering with supplying beef producers in the company’s top 10 beef sourcing markets to measure and understand current usage of antibiotics across a diverse, global supply chain; Establishing reduction targets for medically important antibiotics for these markets by the end of 2020; and Reporting progress against antibiotic reduction targets across those top 10 beef sourcing markets starting in 2022. “The path for creating and implementing a global antibiotic use policy for beef is unprecedented,” said Dan Thomson, M.S., Ph.D., D.V.M., college of veterinary medicine at Kansas State University. “I’ve been encouraged by the thoroughness with which McDonald’s has engaged diverse experts while creating this policy and the seriousness with which they take this important issue.”

McDonald’s also announced that it is joining the Centers for Disease Control and Prevention’s Antimicrobial Resistance (AMR) Challenge. McDonald’s began rolling out its change from frozen beef to fresh beef in March 2018. The company also stopped serving chicken in the U.S. from birds raised using antibiotics important to human medicine in 2016 and expanded that policy around the world in 2017. “Our overall approach to responsible use of antibiotics focuses on refining their selection and administration, reducing their use and ultimately replacing antibiotics with long-term solutions to prevent diseases and protect animal health and welfare,” McDonald’s said. “With this in mind, we remain committed to treating animals when needed.” – Source: Food business News.

What Inspires Auntie Anne’s President Heather Neary

“We’re a franchise-based business, and it’s important we understand how the decisions we make at corporate impact every single store,” says Heather Neary. My first job was working for a little sub shop called Frank’s Place. The owner knew every guest and most of their orders, so I began to learn their orders, too. Those details helped him be successful as a business owner. And that’s a lesson I learned early on. I worked at a lot of different restaurants throughout my college years. One restaurant owner, Carole Ashby, had a slew of restaurants in Lancaster, Pennsylvania, and did a great job with casual dining before casual dining was a category. I learned a lot from her. She was incredibly demanding and expected a lot from us, but she also rewarded us when we did our job properly. I was able to make a ton of money as a 21-year-old college student. In fact, I always say I made more working three nights a week at her restaurants than I did at my first “real job” out of college. When I finally got my degree, I worked in the publishing world. It was a very cyclical job that didn’t appeal to me so I started over as a marketing assistant and really enjoyed the fast-paced, dynamic nature of marketing industry. Eventually I transitioned to Auntie Anne’s when I had the opportunity to move back to Pennsylvania in 2005, and it was a great match.

I went from marketing managing to director of marketing to CMO and then to president. I got to try lots of new projects and new disciplines. I think people have an inherent passion and an emotional connection to food. It’s fun to to tap into that and harness the power of the brand. People have really fond memories of their first Auntie Anne’s Pretzel. There’s just a visceral connection to our product that is unparalleled to anything I’ve ever done before. It’s a great industry to be in. Our company values are passion, respect, integrity, diversity, and excellence. Those aren’t just things that hang on a wall for me—that’s how I run the business. We’re a franchise-based business, and it’s important we understand how the decisions we make at corporate impact every single store. Making sure that’s always top of mind for me is important. What’s your favorite menu item at Auntie Anne’s? If I’m behaving, I get an Original Pretzel with marinara sauce. If I’m really going to enjoy something delicious, I love our Mini Pretzel Dogs. What’s your favorite type of food beyond Auntie Anne’s? I love global flavors. My husband and I eat all different kinds of cuisines. Lancaster County is actually a great foodie town. It has a lot of great restaurants that are run independently, as well as a lot of amazing chains. Who has inspired you as a leader? I’ve been fortunate to have a lot of great female mentors in my career. Although Anne Beiler, the founder of Auntie Anne’s, left about two weeks after I joined, I stayed in touch with her over the years. Also, Carole Ashby; Candie Harris; and of course, Wendy Clark, who was at Coca-Cola and is now the CEO of DDB. What are some of your interests outside of the business? I run every day and at least 100 miles a month. I am training for a triathlon and an endurance relay race. My husband and I also play golf. I have two awesome kids, and I spend a lot of time with them. I don’t sit still a lot. I love the whole focus on fitness: work hard, play hard. – Source: qsr.com

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