To Our Valued Subscribers:

To all our currently serving and former patriots who have served a belated and heartfelt Veterans’ Day THANK YOU from the entire American Recruiters staff. You are the reason we are able to do what we do: providing great people to help companies stay great. American Recruiters is committed to continue to provide Veterans with great opportunities for great companies. If you know of any Veterans’ who are seeking great foodservice opportunities, please contact me or my Associates and we will be more than happy to follow up and see how we can assist. One common trait Veterans’ and great leaders have is courage.

In his most recent article published by Restaurant Smart Brief noted author and sales and marketing guru Steve Keating writes about the Courage needed to be a leader in today’s business climate. He writes that he believes courage is the most important trait since “You can manage stuff but people must be led. People, all people, are emotional. They have hopes, dreams, challenges, and worries. If you’re leading them, truly leading, you’re dealing with your emotions, your dreams, your challenges, and your worries, PLUS theirs.” Pretty interesting concept to ponder for sure.

Another item to think about at this time of year is Thanksgiving. By the time you receive this edition of American Recruiters Global Foodservice News, it will be less than two weeks before the event. On behalf of me and my colleagues let us be the first to wish you and your loved ones a Happy Thanksgiving. As you finish your pumpkin pie and peruse our November edition have a safe and happy holiday.

Craig Wilson

President

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Here’s where the jobs are

The government reported Friday that payrolls increased by 128,000, easily besting the 75,000 estimate economists polled by Dow Jones had forecast.

The leisure and hospitality industry was by far the strongest during the month of October, adding more than 60,000 jobs for the month.

Hiring in the manufacturing sector was soft, but economists blamed the abnormally weak reading on a one-time and lengthy strike at General Motors.

The October 2019 employment report showed U.S. companies collectively added way more jobs than expected during the month, as robust gains in leisure and hospitality and persistent strength in health care offset expected softness in manufacturing. The government reported Friday that payrolls increased by 128,000, easily besting the 75,000 estimate economists polled by Dow Jones had forecast. The unemployment rate ticked up to 3.6%, but held inches away from a 50-year low. The government also revised September and August jobs numbers significantly higher: August’s initial 168,000 estimate came all the way up to 219,000 while September’s jumped from 136,000 to 180,000. CNBC studied the net changes by industry for October jobs based on data from the Labor Department contained in the employment report. The leisure and hospitality industry was by far the strongest during the month of October, adding over 60,000 jobs for the month and outpacing routine employment juggernaut health care and social assistance by more than 25,000. The Labor Department explained in a press release that much of the upswing in leisure and hospitality came from a surge in hiring at food and beverage establishments, which alone added more than 45,000 jobs for the sector’s best month since January. “In October, notable job gains occurred in food services and drinking places, social assistance, and financial activities,” the government said in the report. “Employment declined in motor vehicles and parts manufacturing due to strike activity. Federal government employment also was down, reflecting a drop in the number of temporary jobs for the 2020 Census.” Hiring in the manufacturing sector was soft during the month of October, but economists blamed the abnormally weak reading on a one-time and lengthy strike at General Motors. Manufacturing saw a net loss of -36,000 jobs for the month. Health care and social assistance — a consistent employment gainer — clinched the No. 2 place in October with a net gain of 34,000 payrolls. Professional and business services added 22,000 jobs amid gains in management consultant positions, computer system design, and architectural and engineering services. “The job market is resilient and brought a sigh of relief despite a quadruple whammy of labor shortages, the trade war, diminishing effects of the tax cut and slowing global economy,” wrote Sung Won Sohn, professor of finance and economics at Loyola Marymount University and president of SS Economics. “Manufacturing shed 36,000 jobs, but would have shown a slight increase without the GM strike,” he added. “Manufacturing is a small percentage of total employment, but has a large spillover effect throughout the economy.” Retail trade, which has lately posted a string of losses, managed to hold steady and even add a small number of jobs to help offset net losses for the year. Retailers added 6,100 jobs. The government, which added a slew of temporary workers a couple of months ago to help with the 2020 census, saw net payrolls fall by 3,000 in October. – Source: CNBC.

Outback Parent Bloomin’ Considers Sale

Bloomin’ Brands Inc. is considering “strategic alternatives” including a possible sale, the company said in a release announcing its third-quarter earnings. “The Company plans to proceed in a timely manner, but has not set a definitive timetable for completion of this process,” according to the news release. “There can be no assurance that this review will result in a transaction or other strategic alternative of any kind.” Comparable restaurant sales were basically flat for Outback Steakhouse, the company’s largest brand. Bloomin’ also owns Carrabba’s Italian Kitchen, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. For the third quarter, net income totaled $9.2 million. Revenue was $967.1 million, up from $965.0 million for the third quarter last year.  “Over the past few years, Bloomin’ Brands has made significant progress towards its long-term objectives to elevate the customer experience, capitalize on the emerging off-premises segment, expand the rapidly growing international business, and improve operating margins. These efforts have created significant market share gains and enhanced profitability,” said David Deno, CEO of Bloomin’ Brands. “However, despite this continued progress, we believe the current stock price does not reflect the value of the Company. That is why the time is right to explore strategic alternatives that have the potential to maximize value for our shareholders. Our Board of Directors is committed to fully evaluating appropriate strategic alternatives while simultaneously supporting the Company’s ongoing progress against our business plan.” – Source: NRN.

Buffalo Wild Wings

Buffalo Wild Wings franchisee Diversified Restaurant Holdings has agreed to be acquired by the private equity firm ICV Partners in an all-cash deal valued at $130 million. The $1.05-per-share price exceeds the value of Diversified’s common shares at the end of trading on Nov. 5 by 123%, according to the deal participants. They noted that the purchase includes the assumption of debt and transaction expenses. The acquisition has been structured as a merger with a newly formed affiliate of ICV. With 64 units spread across five states, Diversified is one of Buffalo Wild Wings’ largest franchisees. The brand was acquired last year by Inspire Brands, which is also the parent of Arby’s, Sonic and Jimmy John’s. “These are exciting times for the Buffalo Wild Wings brand,” said Michael Ansley, Diversified’s acting CEO and executive chairman. “Inspire Brands has reignited the sports bars with an improved menu, better customer experience and strong support for its franchisees. With the strength of ICV, our franchise can better leverage this effort and further the long history of BWW customer loyalty.” Ansley and Jason Curtis collectively hold about 34% of Diversified’s outstanding shares. The two have entered into an agreement to sell their shares at the price tendered by ICV. The deal is still subject to approval by Buffalo Wild Wings and a majority of Diversified shareholders, who will be asked to vote yea or nay at their annual meeting. The acquisition is expected to be completed by no later than early next year. ICV is an investor in lower middle-market companies. – Source: Buffalo Wild Wings.

The Cheesecake Factory Leans into Development and Growth for Sales Boost

The Cheesecake Factory is ready to speed up development thanks to a growing portfolio. A new location in Gainesville, Florida, opened during the third quarter of fiscal 2019 and another three are expected to debut by year’s end. But beyond the Cheesecake brand, the company expects to build out the footprint of newly acquired North Italia and fast-casual Flower Child as well. Chief executive David Overton said it will bring six Cheesecake Factory locations, six North Italias, and eight Fox Restaurant Concepts⁠, including five Flower Childs, to market next year. “[With] the strength of The Cheesecake Factory brand, coupled with accelerated and diversified growth drivers in North Italia and the FRC concepts, we believe we are well-positioned to provide our guests with exceptional dining experiences, offer growth opportunities for our respective teams, and maximize long-term value for our shareholders,” CFO Matt Clark added. In April, a smaller 5,500-square-foot prototype arrived in Oxnard, California. The model proved successful and continues to surpass brand expectations, Cheesecake Factory president David Gordon said. This design will now be it used in the chain’s international expansion. During Q3, a second location opened in Abu Dhabi, followed by the chain’s first in Macau. “Our international partners, most specifically in Asia, are excited to see that because they do believe it will allow them hopefully to find some real estate sites that are not available today,” Gordon said, noting the current 7,000-square-foot box.

There are six new global locations in the pipeline with at least four expected to open in 2020. Despite a dip in guest traffic—a 3.7 percent decline due to a slow start to the quarter—Q3 saw same-store sales lift 0.4 percent lift in same-store, year-over-year, building off the comparable period’s 1.5 percent gain. Total revenue for the third quarter, $586.5 million, slightly missed Wall Street estimates. The company’s growing off-premises business also contributed to the quarterly result. Remaining consistent from Q2 to Q3, the channel continues to mix 16 percent of overall sales. Although some analysts pointed out the sales segment plateaued, leadership wasn’t worried about the long-term outlook. Seasonality, especially summer and college, creates a little up-and-down movement for the off-premises business, Clark said. But overall that’s not a concerning notion. “We still feel like it’s growing,” Clark added. “We think that if that can grow 1 to 2 percent a year we are going to be happy and that’s what we believe. I think other people have put bigger numbers out there maybe overshooting it.” Delivery makes up 35 percent and online ordering was slightly up from last quarter contributing 13 percent. Some might find it surprising, but more than 50 percent of all transactions are still phone-in orders, Overton said. After renegotiating terms, DoorDash will remain the brand’s exclusive delivery partner. The companies entered into the partnership in August of 2018, so The Cheesecake Factory expects to see the results of year-over-year growth soon. It will also analyze data from its own online ordering platform for pickup orders, Gordon said.

As the Cheesecake Factory evolves, its marketing strategy needs to shift as well. The company is diversifying strategy and looking at different avenues compared to what it’s done in the past, Overton said. Word-of-mouth once meant telling a friend face-to-face. Now those conversations are happening over social media. The brand is looking to leverage those channels, along with TV spend, Overton said. “We just want to remind people, especially those that maybe aren’t thinking of us in some of those other markets as frequently as we would like that we’re here,” he said. Consumer research showed The Cheesecake Factory’s message resonated with guests and their purchase intent increased, Gordon said. “In turn, we are considering additional targeted media buys in the future,” he added. Margins across the casual-dining segment continue to decrease. The Cheesecake Factory’s ability to adjust allows it not to feel the pressure of margin changes as much, Clark said. Over the past five quarters, the company has hit margin objectives with the help of positive same-store sales, he said, which translates to top-line stability. “The key is comparable store sales, keeping that in that 1 to 2 percent range,” he said. “I think we have proven that if that’s the case we are holding four-wall margins flat.” The new agreement with DoorDash also brings the margin close to what it would equate to for a dine-in guest, further balancing out the equations, Clark said. Gains in the labor war are also driving positive comps. Productivity and employee retention both increased year-over year and there was a decline in the amount of overtime hours, Overton said. Focusing on staffing strategies and forecasting the demand during different dayparts is part of Cheesecake Factory’s ongoing labor plans. Clark expects the positive trend to continue in Q4 and into 2020. Growing the company. The acquisition of North Italia and Fox Restaurant Concepts were $353 million deal completed at the end of Q3 on October 2.

The $353 million deal reinforces its position in the casual-dining industry, Overton said. “My experience working with the North Italia staff members, as well as Sam Fox and his team at FRC has reinforced our belief that our two companies can drive greater value as one organization,” Gordon said. Currently, both brands are working on a comprehensive integration plan. Conversions for FRC’s point-of-sale system to run on the same platform as The Cheesecake Factory are expected to finish shortly. “We are maintaining the integrity of North Italia Concept and everything that makes it so special to guests,” Gordon said. “While enhancing the systems and processes to further strengthen operations and support the continued national expansion of the concept.” Another benefit the brands will receive is an extension of Cheesecake Factory’s exclusive delivery deal with DoorDash. Leadership will continue to look for future opportunities that make sense for the brands to partner on, whether that’s buying chicken together or further integration of technology platforms, Clark said. – Source: fsrmagazine.

Walk-On’s Success Story is Just Getting Started

For many sports bars and casual-dining restaurants, the name of the game has been to slow down, cut back locations, and eliminate weak performers. And then there’s Walk-On’s Bistreaux & Bar, a Baton Rouge, Louisiana-based sports bar franchise that been expanding at a rapid-fire pace, not scaling back. With 32 locations, the brand’s revenue spiked a whopping 56 percent last year. Moreover, it signed deals to augment that number by 30 in the near future and has its sights set on adding 150 stores across 15 states in the next few years. The key to its ascent has been its franchising expertise and management training programs, the company says. In fact, each Walk-On’s location averages an annual revenue of $5.1 million, a healthy take for an individual sports bar. Of its 32 eateries, 27 are franchised and five are company-owned. It’s currently located in six states, including Louisiana, Texas, Alabama, Mississippi, North Carolina, and Florida. In 2020 alone, Walk-On’s is primed to open 22 new franchises, enabling it to surpass 50 outlets by the year’s end. Although it’s considered a sports bar and offers boneless chicken wings, Walk-On’s showcases an innovative menu that includes voodoo shrimp, chargrilled jumbo shrimp stuffed with cream cheese, and pickled jalapenos wrapped in bacon. Its average entrée costs $21, and average dinner check goes for $33. To keep its restaurants staffed properly through growth, Walk-On’s developed a Bluechip program, an internal career development platform that prepares staff for management positions. But expanding at such a rapid pace has its traps, which many restaurant chains have succumbed to. Walk-On’s must prove that it can develop management talent to keep pace with its accelerated expansion.

Brandon Landry launched Walk-On’s Bistreaux & Bar in 2003 in Baton Rouge near LSU’s Tiger Stadium, and named it for the fact that he was a walk-on player for the school’s basketball team. That meant the star players were on scholarship, and Landry had to scramble and hustle to stay on the team. He used that metaphor, working hard and staying on course as a walk-on and putting the team first, as a theme to run his sports bar. When New Orleans Saints quarterback Drew Brees, a Purdue University scholarship athlete, dined there and loved it, he contacted Landry, invested in it, and joined Walk-On’s as a partner. The NFL’s all-time passing yards leader makes occasional promotional appearances when time permits. In a previous interview, Landry said, “We’ve broken the mold of being a traditional sports bar. Our guests are coming in to eat first.” Asked whether Walk-On’s plans are too ambitious, Joe Caruso, partner in Franchise Info, a franchising consulting firm, replied, “It’s a blend of aspiration and reality.” But he pointed out, in the last three years, it has generated steady, moderate growth, adding three outlets, then six, and then eight restaurants annually. But when chains publish reports of opening 30 locations soon and 150 in the next few years, Caruso becomes skeptical. “Franchises love to put out numbers that are exciting to make it sound like an attractive investment to get more franchisees,” he says. Often they don’t live up to expectations. Caruso also notes that the sports bar segment is a very “crowded space” that includes growing chains such as Twin Peaks and Arooga’s Grille House & Sports Bar. The good thing about Walk-On’s is their volumes are higher than the $4 million average store rate of many of its competitors, he says. In order to grow at a pace of 30 new locations in a year, Walk-On’s would require “talent and capital.  You need someone who understands casual dining and the sports bar business at a unit level and someone with financial experience to help with development and securing the right locations at the right cost,” Caruso says. Despite Walk-On’s creating a career development plan for its employees, Caruso says, it will only succeed for about the first three locations before the talent base thins out. Hence it could hire a savvy vice president of operations who knows how to recruit the right management talent and sustain the pipeline. If not, problems arise when restaurant management can’t sustain the growth, he says.

Walk-On’s revenue derives from about 60 percent food and 40 percent beverages. So far, Caruso describes Walk-On’s as a success story, particularly in its ability to attract millennials.  “They’re taking advantage of the Applebee’s effect because many are tired and consumers are looking for something new. They want something that’s hip, new, and speaks to them,” he says. Caruso says the chain could benefit from locating new outlets in “contiguous markets, where they have operating efficiency, and which helps the supply chain.” Scott Taylor, the Baton Rouge, Louisiana president of Walk-On’s Bistreaux & Bar, attributes the chain’s success to its competitive edge compared to many of its rivals.  Many of the casual-dining chains, he says, operate in a “sea of sameness. They’re so close to their competitors that they can’t differentiate themselves.” On the other hand, he described Walk-On’s as a “restaurant first, more than a sports bar, a scratch kitchen, with a taste of Louisiana in our food, culture and offerings.” Unlike most sports bars that cater to men, Walk-On’s on a typical day attracts “women, families, guys drinking at the bar and seniors, with a 50/50 split between men and women,” Taylor says. Additionally, its revenue derives from about 60 percent food and 40 percent beverages whereas most sports bar average 75 percent beverage, he says. While many insiders view having franchisees as running a restaurant as giving up control, Taylor turns it into a positive. “The franchisees are out there, in the restaurant every day, to make it successful.” He calls them “entrepreneurs who work within the system and standards,” not outside it. Walk-On’s also offers additional support beyond what some franchisers do. Its regional managers oversee no more than 10 locations at a time and are supported by a regional culinary manager and marketing manager who visit units twice a month to offer support. The company uses its Bluechip program as a way to reward talented staff. “We overstaff our restaurant with management and team members, knowing a franchisee may need help. It’s a win/win for us and them,” Taylor says. Millennials are attracted to Walk-On’s, Taylor says, mostly by the distinctive food. “They like flavorful, innovative food. At some legacy brands, the food hasn’t been the hero,” he says. Walk-On’s offers millennials experiences beyond just dining, too. “They’re looking for fun stuff to do when eating. They can be on social media, watch a game on TV, more than just eating a meal,” Taylor says. Taylor contends that Walk-On’s has the potential to work “in every community across the country.  Sports play well with all demographics. We’re growing at a good pace and will continue to be a dominant player in the market.” – Source: fsrmagazine.

Veggie Grill Debuts Prototype in Chicago

The restaurant is the Culver City, Calif.-based fast-casual brand’s fourth restaurant in Chicago and is located in the West Loop at 911 W. Randolph St. The company said the design, largely in shades of white, is a new store prototype. It covers 2,500 square feet and has 58 seats. “We look forward to expanding in the Chicago community with our new West Loop location, especially given the prominent culinary landscape we join on Randolph Street,” said Steve Heeley, Veggie Grill CEO, in a statement. “Our team is dedicated to supporting the growing mindful eating movement by inviting all to explore the plant-based movement through our delicious food.” Veggie Grill’s menu is plant-based, featuring burgers, sandwiches, tacos, burritos, bowls, salads, desserts and a rotating selection of seasonal dishes. Veggie Grill was among the first multi-unit restaurants to offer the plant-based Beyond Meat products found in such menu items as the Beyond Crispy Tacos and the Beyond Patty Melt. The Chicago West Loop restaurant marks the brand’s 36th location since opening in California in 2006. It offers catering, delivery, online ordering for pickup through the Veggie Grill Rewards app and in-store kiosk ordering. The brand has restaurants in California, Illinois, Massachusetts, Oregon and Washington. It has plans to open in New York City this fall. – Source: NRN.

Amazon Will Open a New Grocery Store as Alternative to Whole Foods

Amazon said it plans to open its first new brand of grocery store in California next year, as it amps up its ambitious push to become a bigger name in food. “Amazon is opening a grocery store in Woodland Hills in 2020,” an Amazon spokesperson confirmed to CNET on Monday morning, soon after the company published four new job postings for the location. Woodland Hills is a neighborhood in Los Angeles. The store will be different from Amazon-owned Whole Foods, the company said. It didn’t say whether it will open more of these locations, what its selection or pricing will be, or what the brand name is. But in the jobs postings, the company described the Woodland Hills location as “Amazon’s first grocery store,” suggesting that it will have the Amazon brand name and that the company could expand to multiple sites. The store won’t use the company’s Amazon Go technology, which allows customers to check out without waiting in line. Instead, checkout will be conventional as at other grocery stores, the company said. In addition to Whole Foods, which Amazon bought for $13.2 billion in 2017 and has over 500 stores, the company offers grocery delivery through Amazon Fresh, the main Amazon website and Prime Now, as well as food at Amazon Go. The Wall Street Journal in March wrote about the existence of Amazon’s new grocery store format, which the company hadn’t confirmed until Monday.

Last month, the publication said Amazon was already working on additional stores in Los Angeles, Chicago and Philadelphia. The new store, though with only one confirmed location so far, points to Amazon’s growing ambition in the roughly $800 billion US grocery market, where rival Walmart is the leader and Amazon, even after its Whole Foods deal, remains a small player. Expanding in the grocery sector helps Amazon, the world’s largest online retailer, in a number of ways: It reinforces customer loyalty because people tend to shop at a local store every week and it could allow the company to continue its fast revenue growth, which typically hovers around 20% every quarter despite its massive size. Additionally, the new line could let Amazon move into the more mainstream grocery store business, while maintaining Whole Foods as a higher-end store for organic and specialty foods. This work could offer new competition to Kroger, SuperValu and many other supermarket chains. While Amazon is known for skillfully pushing into new markets, the new store comes with lots of risk. Several of Amazon’s other physical store lines, including Amazon Go and Amazon Books, aren’t yet huge moneymakers. It’s also shuttered its line of mall kiosks, which sold Amazon devices and smart-home gear. Plus, the company would have to spend years building out a new chain of stores then bank on people switching their weekly habits to go to them. Added to that, the grocery business offers razor-thin margins, so there’s little wiggle room for Amazon to lower prices while still trying to bring in a profit. Amazon posted job openings for a store lead, grocery associates and food service associates at the Woodland Hills store.

The store has been reported to be a former Toys R Us that’s about 35,000 square feet in size. When asked if the new stores will compete against Whole Foods or signal a move away from investing in that brand, Amazon said no, offering strong support for continuing to grow that business. “When it comes to grocery shopping, we know customers love choice, and this new store offers another grocery option that’s distinct from Whole Foods Market, which continues to grow and remain the leader in quality natural and organic food,” the Amazon spokesperson said, noting that Whole Foods opened 17 locations this year and that more are planned. The spokesperson said Amazon will continue to invest in grocery delivery with Whole Foods. In another sign of Amazon’s growing interest in the grocery business, the company last month did away with its $14.99 monthly fee for Amazon Fresh grocery delivery. The change undercuts rival Walmart’s new Delivery Unlimited program, which costs $12.95 a month and was just introduced in September. – Source: CNET.

Burger King discount ‘mistake’ costs franchisee millions: ‘We screwed up’

A “mistake” allowed customers to combine Whopper discounts at certain Burger Kings, costing the franchisee millions. A restaurant group based out of upstate New York revealed the extent of the mistake during a recent earnings call, according to reports. The discount mistake cost the franchisee an estimated $8.2 million. Customers were able to take advantage of a deal that allowed them to buy two Whoppers at a discounted price and get fries and a drink for “value meal” prices, the Syracuse Post-Standard reports. This mistake cost the company $1.50 on every sale. The CEO of Carrols Restaurant Group, Dan Accordino, said that the original discount was an offer for “two Whopper Jr. sandwiches for $4, two Whoppers for $5 and two Double Whoppers for $6,” according to the paper. Customers purchasing these burgers should have been charged full price for fries and drinks added to an order, but were mistakenly charged “value meal prices,” the paper reported During the company’s third-quarter earnings call, Accordino stated, “It was not an accounting issue, it was not a systems issue. It was a mistake. We screwed up and it cost us a fair amount of money,” according to a transcript of the call on Sentieo, a financial services site.

The double discount was in effect during the second and third quarters of 2019 and the Post-Standard reports that the double discount caused a reduction of $12.4 million in revenue which resulted in a net loss of $8.2 million. “We screwed up, but the fact of the matter is, the underlying business is stronger than what our numbers reflect,” According said during the earnings call. Source: Fox News.

Wendy is hungry for more frequent customers

A honey butter chicken biscuit sandwich served during breakfast hours. The return of Wendy’s to Europe within 18-months. 50-piece orders of spicy chicken nuggets being ordered by those that saw a bullish Chance the Rapper tweet about them. The Baconator ordered on the Wendy’s app and delivered soon thereafter by Grubhub. Clearly, this is not the steady as she goes Wendy’s that Wall Street has come to know and appreciate over the past 10 years. No, this is a Wendy’s hungry for more frequent customers during the week. A Wendy’s that believes it deserves a place in breakfast besides heavyweights McDonald’s and Dunkin’ Donuts. A Wendy’s that appreciates its model of consistency honed through the years, but is locked and loaded on finally taking some well-calculated risks.

In short, the mild-mannered and all around nice guy Todd Penegor — aka Wendy’s CEO — is ready to write his own chapter in a fast-food chain founded in 1969 by Dave Thomas and known mostly for its fresh beef promise, spicy fried chicken and mostly U.S.-centric store base. “This is a different Wendy’s. You think about having the courage to play to win, we are really trying to create a compelling accelerated growth story and then carry that into our brand and our stock,” Penegor tells Yahoo Finance. Wall Street hit Wendy’s stock hard in September (-9.2%) amid the emergence of Penegor’s more aggressive growth strategies, notably the re-launch of breakfast. The stock has stabilized a bit, rising about 4% in October. The main concern among analysts — generally taken by surprise by the shift in Wendy’s growing plate of initiatives — is that the company is sacrificing near-term profits in another breakfast launch that may not work well due to serious entrenched competition. Penegor says it’s time for Wendy’s to take some well thought out risks now that a good number of restaurants have been remodeled and customers are visiting more often. Yahoo Finance caught up with Penegor fresh off his presentation — and those from his executive team — to analysts and investors at the company’s investor day Friday. The company released bullish third quarter preliminary North American same-restaurant sales growth of 4.4% and a 20% dividend increase. The sales momentum in the business suggests Penegor is right that the time is now for Wendy’s to get after it, so to speak. – Source: Yahoo Finance.

TGI Fridays Agrees to Deal to Take it Public

Privately held TGIF Holdings LLC and Allegro Merger Corp., a special purpose acquisition company, have signed an agreement that would take the casual-dining chain public, the companies announced. The Dallas-based parent of the TGI Fridays and New York-based Allegro Merger, said that, at closing, TGI Friday’s holders will receive a combination of cash and stock valued at $30 million and Allegro will assume about $350 million of net debt. The majority owners of TGI Fridays are TriArtisan Capital Advisors LLC, expects to exchange a majority of its ownership in the TGI Fridays business for shares of Allegro, and MFP Partners L.P., led by Michael F. Price, which intends to exchange all of its ownership in the TGI Fridays business for shares of Allegro.

Ray Blanchette, CEO of TGI Fridays, said in a statement that his first order of business when he joined in the company in October 2018 was to hire management team. “This transaction is the next significant strategic move,” Blanchette said, “and will allow us to gain public company status and access incremental equity capital to accelerate the rejuvenation of this iconic global brand.” TGI Fridays’ existing holders may receive an additional two million shares of Allegro common stock contingent upon achievement of specified post-closing performance metrics of the business.  The pro forma valuation of the combined business, assuming a $10.16 stock price, represents a relative discount to comparable publicly traded dining concepts. Friday’s has about 840 restaurants, with more than half of those franchised and licensed internationally. The company said 83% of its restaurant are franchised.

The brand was founded in 1965. Of the 396 domestic restaurants, 144 are company owned. The company went through a refranchising program in 2014 after it was sold by Minneapolis-based Carlson to Sentinel Capital Partners and TriArtisan Capital Partners for an estimated $800 million. The company said systemwide sales for the 12 months ended Sept. 30 were about $2 billion and the average annual unit volume was about $2.7 million. In the past year, Blanchette brought John Neitzel and Jim Mazany back to Fridays to run franchising and company stores, respectively. “With these additions to the management team and the new operating plan in place, we believe Fridays is poised to regain its position as a leader in the bar and grill space,” the company said. TGI Friday’s and Allegro’s boards have unanimously approved the merger agreement and Allegro’s board has recommended its stockholders approve the transaction. Allegro intends to hold a shareholders meeting to extend the investment period of the special-purpose company to March 31, 2020, following which it will call and convene a special meeting of shareholders to approve the business combination and related matters. The business combination is expected to close in the first quarter of 2020. “Allegro’s board and I believe that Fridays is an unparalleled iconic international brand and we are excited to be able to bring this opportunity to our shareholders” said Eric Rosenfeld, Allegro’s CEO. “Fridays’ highly predictable stream of franchise and licensing revenue is very attractive and we believe that Fridays provides a compelling value to our shareholders.” Rohit Manocha, managing director and co-founder of TriArtisan, said, “Coupled with the right capital structure, we believe the brand is ideally positioned to take advantage of the rising demands of our guests. TGI Fridays’ bar heritage is unique and creates a point of distinction in this mature segment of casual dining.” For the purposes of this transaction, Allegro is represented by Graubard Miller and TGIF is represented by Ropes & Gray LLP.  Cantor Fitzgerald and Piper Jaffray & Co. are acting as capital market advisers to Allegro. – Source: NRN.

In-N-Out Burger: Keeping Quality High and Prices Low

In-N-Out Burger plans to open its first Colorado restaurants in late 2020. And, while the brand is only available in six states, the Southern California-based institution won’t have trouble luring customers to its brand when it enters its seventh state. The iconic 71-year-old year old chain has built a cult following and its reputation precedes it as it enters new markets. That fandom is evident in the results of the annual Consumer Picks survey, where In-N-Out — once again — was a top finisher in multiple categories. The Irvine, Calif.-based quick-service chain took the No. 2 for True Loyalty, beating out more than 200 other brands in the survey. It was the top scorer among all brands for value, with 74% of respondents saying it was above average in that area. It also scored third overall for food quality, with a 73% score. It also tied for favorite limited-service burger, with Five Guys Burgers and Fries, with a full 87% of respondents citing it as “best in class.” Denny Warnick, vice president of operations at In-N-Out, said the family-run company takes great pride in maintaining the high standards created by its founders, Harry and Esther Snyder, while still offering its simple menu of burgers, fries and shakes at relatively low prices. The price of an In-N-Out cheeseburger is $3.07 in Orange, Calif. In the same market, a single patty Little Cheeseburger at Five Guys cost $7.42. “As a company, we can do our part by providing the highest quality ingredients and being committed to raising prices as seldom as possible, but we believe it is our associates’ extraordinary dedication to serving quality burgers and French fries with friendly, smiling service that makes the biggest difference to our customers,” Warnick said in a statement. In-N-Out is building a new distribution center in Colorado Springs to maintain its high standards around its ingredients, particularly its beef. That facility will supply restaurants slated to open in late 2020. The first two restaurants will be in Colorado Springs and the greater Denver area, Warnick said. – Source: NRN.

The Cheesecake Factory Puts the Focus on Employees

In an industry where labor costs continue to strain operating margins, The Cheesecake Factory is trying to gain an edge by focusing on staffing and employee retention. According to a study conducted in 2017, a whopping 72 percent of all restaurant workers left their jobs compared to a 47 percent rate across all industries. As other restaurants struggle to retain qualified workers, the polished-casual brand said it’s turning the conversation around. At the end of 2019, Forbes named The Cheesecake Factory one of the “Best Companies to Work For,” for the sixth year in a row. The company is using the momentum to fuel employee programs and improve operations for employees, it said. Staff retention began to stabilize for the Cheesecake Factory midway through last year, president David Gordon noted during a May 1 conference call. “We believe our staffing success is contributing to the consistent trend in our guest satisfaction scores as industry research continues to confirm the importance of service to the guest experience and the overall restaurant’s performance,” Gordon said. The major factor driving the high turnover rate in most restaurants starts with “not having training and bad supervision,” David Scott Peters, who runs the Restaurant Expert, a Phoenix-Arizona-based restaurant training and consulting firm, told FSR earlier. One key issue, he added: The majority of restaurant employees depart in the first 90 days of being hired “because they don’t know what their job is and are tired of having a bully manager yelling at them. Instead of asking for help, they leave.” The Cheesecake Factory puts an emphasis on the employee-manager relationship, and helps engage staff members as soon as they’re hired. Gordon did not go into specifics about the restaurant’s retention rates, but did note that management retention is at an all-time-low, hovering around 1-2 percent. Having a strong employee backbone continues to aid positive results at the 219-unit chain. Same-store sales lifted 1.3 percent during the first quarter, beating internal expectations. Labor costs, as they are for many full-service chains, challenged costs. Total revenue for the quarter was $599.5 million. Labor costs increased about 40 basis points compared to this time last year, taking up 36.2 percent of The Cheesecake Factory’s revenue, the company said. Chief financial officer Matthew Clark attributed this increase to higher hourly wage rates and management labor. Check averages are also steadily increasing. Analyst David Tarantino pointed out The Cheesecake Factory will cross the $23 average check total and questioned whether there was any resistance as the company tries to reach $25 and beyond. Clark said the company kept an eye on its competition and is tracking normally. Additionally, it’s moving to protect margins in order to benefit from the higher check totals. Menu mix and pricing are contributing to growing totals. “I think when we look at the mix, we feel very good about the elasticity of our pricing power, how guests are navigating,” Clark said. “They continue to order across the spectrum, which is very positive.” With the significant growth of the off-premises segment factored in, check totals are slightly distorted because the growth is happening so rapidly, Clark added. While sales inside the four walls of the restaurant continue to increase, off-premises is also gaining ground. The segment grew 2 percent from 14 to 16 percent during Q1. Delivery makes up 30 percent of off-premises, and with the exclusive partnership with DoorDash, executives believe growth will continue into the near future. The Cheesecake Factory is capitalizing on DoorDash’s creative marketing to show customers they don’t have to dine exclusively in the restaurant. “Along with being able to be at the top of the app with DoorDash and having the awareness of the brand top of mind when somebody goes in just through the DoorDash app to begin with, along with the marketing that we’ve done with DoorDash,” Gordon said. “The TV marketing that they’ve done most recently has continued to grow that channel in a pretty strong and meaningful way.” Data collected from the partnership revealed customers are very attracted to the brand and aware of its delivery platform, Gordon said. One of the latest marketing campaigns that ran on April Fool’s Day gave 10,000 people $25 of free Cheesecake Factory delivery through DoorDash. All 10,000 rewards were claimed within just eight minutes, Gordon said. Delivery and digital check totals are higher on average than in-store checks. Customers are also spending more on dessert when they place an online order than if they were to dine in the restaurant. Online sales of desserts made up between 17-20 percent of online sales. Gordon believes delivery sales will continue to grow. “Whether we’re mature in markets or in some of the newer markets that we launched towards the end of last year, the popularity of delivery continues to grow,” Gordon said. “The guests continue to be as pressed, if not more pressed for time than they have been in the past.” As The Cheesecake Factory breaks into new markets, off-premises will remain a major part of the brand’s growth strategy. For 2019, the company expects to open six new restaurants domestically and another five internationally.  Last month, a new location featuring a smaller footprint opened in Oxnard, California. The company is testing the smaller prototype, which is about 5,500 square feet, for international growth opportunities. “We opted to build a smaller restaurant to determine if this business model can capture sufficient productivity and efficiencies in a smaller footprint,” Overton said. “If we are successful, we would look to export the model to our international partners as it could support additional real estate opportunities, particularly in Asia, where larger locations are difficult to find.” If the smaller restaurants could operate as fluidly as a normal restaurant, which tend to be between 7,200-7,500 square feet, then it would be a viable idea to grow with global partners. The testing is ongoing as the new location only opened a couple of days ago, but so far is beating sales expectations, Gordon said. “We wanted to be able to prove out that we can execute the menu in a little bit of a smaller kitchen design,” Gordon said. “We want to prove out the feel of a Cheesecake Factory when you walk in, everything at the guest experience is still there in 5,500 square feet.” Gordon noted that the smaller footprint is only being developed for international restaurants and they don’t have any plans to open them domestically for the time being. The growing popularity of off-premises and ghost kitchens also are of no interest for The Cheesecake Factory. “We can execute what we need to do off-premises and even grow those sales in the kitchen designs that we have today due to their size,” Gordon said. “So we would look to continue to do that and not add any additional costs or any other additional complexity.” The Cheesecake Factory dipped its foot in the fast-casual sector during Q1 with the opening of Social Monk Asian Kitchen in California. So far customers are responding well to the concept, but the company is working to balance food and labor costs to make it successful, Overton said. A second location could come soon if the kinks are worked out. The deal to acquire North Italia and Flower Child should be completed in Q3. Clark confirmed the transaction will cost the company about $150 million. North Italia continues to open locations and grow its footprint. The brand now has 18 locations. Clark said the company is allocating between $90­–100 million for anticipated growth and maintenance needs across both brands. “Everything that’s going on at North [Italia] today is why guests love it so much,” Gordon said. “We will look to leverage our supply chain scale, our IT infrastructure, some of our HR practices, whatever we can do to add more value in the concept, we will.” – Source: fsrmagazine.

Actually, More Restaurants Are Opening than Closing

Despite what is often described as a booming economy, the news in the independent restaurant world across the country has been a bit grim in recent weeks. In cities like Seattle, Pasadena, Calif., and even Birmingham, Ala., restaurateurs are raising the alarm, saying rising costs are taking a toll on the restaurant communities, resulting in a higher rate of closures. San Francisco, long one of the nation’s top dining towns, has become somewhat of a poster child for the argument that restaurant operators are running out of options, as labor and real estate costs continue to climb — not to mention permitting delays and the burden of mandates like health care and sick leave. Stacy Jed, co-owner of Bluestem Brasserie and president of board for the Golden Gate Restaurant Association in San Francisco, said it has felt as if a tide had turned over the past two years, with restaurant closures outpacing openings. She cited data from Yelp indicating that 325 restaurants closed in the city in 2018, compared with 298 that opened. Jed blamed the steady increase in the minimum wage over the past five years, as well rising rents and a retail slowdown that has hurt foot traffic to restaurants. The lack of affordable housing has made it more difficult to recruit workers. “It’s not any one thing,” she said. “But the volume of traffic is not in step or in keeping with rising costs.” While the lament is familiar across the country, a bigger picture look indicates the restaurant industry is continuing to grow, not shrink. When asked to look at the restaurant openings versus closures in four major metro areas this year, for example, Yelp data indicates more restaurants are opening. From January through Sept. 30, for example, more restaurants opened than closed in New York, Los Angeles, Chicago and San Francisco.

In addition, those numbers only reflect brick-and-mortar locations. A growing number of restaurant operators are building new virtual brands for delivery only, without any physical location. Advocates for a higher minimum wage continue to offer evidence that the restaurant industry is thriving not dying. In New York, for example, both restaurant revenue and employment were up in the period between 2013 and 2018, when the minimum wage grew in phases from $7.25 per hour to $13.50, according to a report supported by the National Employment Law Project, which has backed a move to eliminate the tip credit there. Still, some data indicates a slight decline in unit count. The NPD Group’s twice-annual ReCount restaurant census, for example, showed a slight contraction. As of March 2019, there were 364,468 independent restaurants across the U.S., which was down nearly 1%, or 2,065 locations, from a year prior. Tim Powell, managing principal with management consulting firm Foodservice IP, based in Chicago, said such numbers may simply reflect the way consumers are dining out differently. “I think it’s overblown, the shuttering of units,” Powell said. “While new unit openings and closures has typically been a reference point, we’re under a completely different foodservice paradigm.” He added that the growth in off-premise transactions has given independent restaurant operators more options for growing their businesses. “I don’t think we can look at things like openings because we’re seeing instead independents getting more creative,” he said. Smart restaurant operators are looking for ways to boost consumer engagement and build new business within their four walls, he said. That’s not to say there aren’t storms ahead. The restaurant industry is 15% of the global economy and remains vulnerable to recession fears, not only in the U.S. but around the world. Powell predicted signs of recession will begin to appear in the next quarter, starting in December. “The foodservice industry is a leading indicator and we’re already seeing consumers tightening their belts,” he said. Now is a good time to “hold tight and make sure your formula works,” said Powell, including investing in things like service, cleanliness and staff friendliness. “This is the time to up your guest satisfaction,” he said. — Source: Restaurant Hospitality.

Chicken in Bamboo Buckets

KFC Canada wants to serve up chicken in bamboo buckets eventually, but the fast food chain will start next year with poutine after it finds the right product for its pilot. “We want our customers to feel that KFC is dedicated to, not only providing finger lickin’ good chicken in every bucket, but also delivering it in a way that our guests can feel good about,” said Armando Carrillo, KFC Canada’s innovation manager, in a statement. The company’s sustainability commitment, which includes sourcing all of its fiber-based packaging from certified or recycled sources by next year, will see it testing new, innovative materials, it said in a statement.

KFC Canada says bamboo buckets will be available at some of the company’s more than 600 Canadian restaurants starting in early 2020. Just how early is still up in the air. “It will depend on how quickly we can work with suppliers to find a bamboo bucket option that maintains the integrity (of) the product while also achieving our sustainable goals,” a company spokesperson said in an emailed response to questions. The restaurant chain said it will strive to have buckets that are compostable but will at the very least ensure they are recyclable or reusable. Since different Canadian jurisdictions have different recycling and composting rules, it can be difficult for companies to make sure their products are recyclable or compostable across the country. Whether the bamboo bucket will meet those requirements Canada-wide “is something we will need to investigate as we move forward with viable prototypes, but it will be recyclable where facilities permit,” it said. The move would replace its polypropylene poutine packages with bamboo ones. “I think they’re doing a great thing,” said Chunping Dai, an associate professor at the University of British Columbia’s department of wood science. He noted many companies are starting to look at using bamboo and not just for takeout food containers. Companies are testing or already using the material in beauty products, furniture, sleep sets and other goods. “Bamboo is very sustainable,” he said. It grows very quickly, reaching its mature size in about three or four years, he said. The plant also sequesters about 40 per cent more carbon than trees given the same amount of land, Dai said.

One strike against it, though, could be cost, he added – as plastic products are notoriously cheap. That may come down to a demand issue. As more companies want to use bamboo, the material can be mass-produced and its cost could become more comparable to plastic, he said. KFC Canada plans to expand the initiative to all of its buckets -not just poutine – once it is successful at finding the right packaging. In this pilot, which will last for a yet undetermined amount of time, it is looking at consumer feedback and operational ease, among other things, to gauge success. The company has also promised to remove all plastic straws and bags from its restaurants before the end of this year. Many other chains are making similar moves when it comes to single-use plastics and have started to test or implement packaging made from alternative materials. McDonald’s Canada announced in June that two of its restaurants – one in Vancouver and one in London, Ont. – would become test beds for its greener packaging initiatives. The two locations would trial wooden cutlery and paper straws, among other alternatives. A&W Canada stopped serving plastic straws recently. It unveiled a public art installation in Toronto in January that spelled out the phrase “change is good” with the last of the company’s plastic straw reserves. Coffee chains in the country have been keen to create more sustainable packaging as well. Tim Hortons recently introduced a recyclable lid, while Starbucks says it is working to eliminate plastic straws globally by 2020. Consumers pushed the movement against plastic straws. Awareness seemed to reach a tipping point in 2018 after a video showing a turtle with a plastic straw stuck in its nose went viral. – Source: The Canadian Press/BNN Bloomberg.

Growth of CBD, Plant-Based Protein Gives Rise to New Food Safety Considerations

Regulatory insights tied to the burgeoning use of CBD in foods and beverages, as well as the handling of the plant-based meat substitutes now taking foodservice by storm, were key areas of discussion at the 14th annual Nation’s Restaurant News Food Safety Symposium this fall. The invite-only event, sponsored by Ecolab, drew three dozen operators, educators and attorneys to the Park MGM hotel in Las Vegas Sept. 22 through Sept. 24. The event featured regulatory and research updates, keynote speeches, operator presentations and attendee roundtable discussions. Here are five lessons for restaurant operators from this year’s event. Monitor CBD regulations closely. Cannabidiol, or CBD, is gaining popularity as consumers grow more comfortable with the hemp cannabis extract, but its use poses many food safety and regulatory questions. “We are in the midst of one of the most remarkable and complex legal and cultural shifts in American history,” Shawn Stevens, founder of the Food Industry Counsel LLC law firm, said in a keynote address delivered with associate Joel Chappelle. “A new product. A new market. It’s unbelievable.” CBD use in the restaurant space is “fraught with a little bit of risk,” Stevens said, citing local laws and the Food and Drug Administration’s oversight. And while he said related developments are evolving quickly and must be followed closely, “I predict, moving forward, that the FDA will legalize CBD for use in food products.” Chappelle said CBD adoption and legislation like the 2018 Farm Bill, which differentiated hemp cannabis from marijuana cannabis, “is happening so quickly that ultimately the federal government has been cornered by its own policies over the past decades.”

In 1996 cannabis was illegal in all U.S. jurisdictions, he said. Now, 11 states have legalized marijuana for recreational or medicinal use, and it has drawn support from ex-lawmakers and celebrities, alike. Still, Chappelle added, the state of the law “remains very confusing.” Earlier this year, a number of local health departments, from New York to Ohio and Maine to Georgia, cracked down on restaurants and bars serving CBD, even as a number of restaurant brands, including Fresh&Co and Carl’s Jr., offered items made with CBD. Doug Davis, senior director for global food safety for Marriott International, told attendees that his company — which has more than 10,000 restaurants under 30-plus brands, as well as spas and wellness centers — is poised to take advantage of CBD approvals. “Obviously, our customers are asking about it,” Davis said. “We’re using it in spas with CBD topicals in California and Colorado.”

Experts said many questions remain about CBD’s use, such as quality assurance on sources of CBD and allowable amounts safe for consumption. “Nobody’s actually putting a tincture of CBD in any food and selling it,” Davis noted. “They are doing condiments — like a pesto or chimichurri — or they are doing sachet bags.” CBD’s addition to drinks has been one of the more generally accepted uses, according to Davis. “We’re watching the legal situation very, very closely,” he added. Create guidelines for safe handling of plant-based meats. The growing popularity of plant-based “meats,” such as those from Beyond Meat Inc. and Impossible Foods Inc., generates a number of unknowns for food safety experts. Everything from the ingredient’s processing and potential allergic reactions to how to store and cook the plant-based products have yet to filter into the Food Code, according to experts on the Food Safety Symposium’s “Food Trends That Impact Food Safety” panel. Issues abound, they said, and customers are raising questions about the products. “They use 22 ingredients to replicate a burger, which is one ingredient,” said Marriott International’s Davis, who joined Brian Nummer of Utah State University’s Food Safety Extension division, on the panel. “They are also adding back in all the vitamins they remove by processing,” Davis said, and the ingredients are highly refined, such as the use of beet powder and pea proteins. Because many of the faux meat products contain pea proteins and other plant products, it also raises concerns about glyphosate residue levels from broad-spectrum systemic herbicides used in their production. Safe storage is one question, said Nummer of Utah State University. “Is it a plant?” he asked. “Certain plant-based items — onions and potatoes — you can leave at room temp.” Safe cooking temperatures are another. “Do I cook to my typical meat temperature, or can I just do 135[F],” he said. “When we put something together like this, is 135 safe? I wouldn’t recommend going down that low.” Potential hazards are not yet addressed in the Food Code, he added, and training programs are just catching up with the growing number of plant-based meat alternatives. Leverage video for more effective training. The procedural nature of food-safety training makes it “the right content for digital training,” Tim Nel of learning technology firm Lobster Ink, an Ecolab company, noted during the “Operational Excellence in Food Safety” panel. Joining Nel in that presentation were William Moore, director of safety and security for Eat’n Park Hospitality Group, and Mandy Sedlak, food safety and public health manager for the EcoSure division of Ecolab. “Video is an interesting concept, if you do it correctly. [Researchers] have estimated that a 45-minute webinar or live-training session can be condensed effectively into two 4-minute video lessons,” Nel said. He mentioned that his group moved away from “talking head” training videos to those using task or other imagery and underlying voice narration because viewers can get distracted “analyzing the person” when the instructor is shown simply speaking. “Video is particularly powerful for food safety and compliance training because of fear” and other emotions it can easily convey, he said. “As soon as we can attach emotion to knowledge transfer it sticks.” Nel stressed that training content creators can shorten the time it takes employees to reach initial food-safety or general job competence by focusing only on “core” lessons in early training. He recommended avoiding “edge case” details, or those associated with concepts or skills a worker may need later in the course of their job and for which training can be layered in over time. Don’t be afraid to have a little fun, too.

Eat’n Park’s Moore urged the “Operational Excellence” panel audience to consider creating “brain ticklers” to improve employee engagement with food-safety training. “For example,” he said, “We had a managers’ golf outing [and] put signs at every hole about food safety that had a golfing twist, such as, ‘Cook all birdies to 165 degrees.’” “We use [intranet] memes; we use Legos; we send food-safety selfies to senior executives; we do stuffed-animal germs,” Moore said of the unique props used to bolster Eat’n Park food-safety messaging, which also include nearly 2,000 View-Master stereoscopes with custom content reels and in-house illustrated posters. “The toys bring an impishness to your food-safety program,” he said. “I’m not saying you have to be all goofy, but our company does engagement scoring of all corporate departments, and our food-safety program gets the highest scores.” Last year, Moore said, his team staged a six-hour food-safety meeting for managers that featured senior executives-sung parody songs from popular musicals, such as a “Mamma Mia!”-inspired ditty called “Diarrhea!” “This really builds engagement among our executives” and with their involvement “it also makes the [food-safety] program a little more relevant to operations,” he observed. Safeguard foods out for delivery. Safety concerns around the rise in delivery of restaurant foods, particularly by third-party-services personnel, as well as examples, ideas and concepts for mitigating some of those worries, surfaced during the symposium’s roundtable discussions. They included:

* The example of restaurants that offer third-party delivery drivers free fries or beverages to reduce their temptation to open meal packages in transit to snack, thereby increasing the possibility of food contamination.

* The idea that tamper-resistant packaging is a “have-to-have, not a want-to-have” for delivery and that solutions might include the use of unique stickers to seal edges of conventional to-go containers or the use of once-and-done sealable bags.

* The concept of using receipt or packaging notations indicating at what time a meal was picked up, this to flag inordinate delays in delivery that may constitute improper and possibly dangerous food holding times. Source: NRN.

Sbarro Set to Open First Location in Costa Rica

Sbarro announces its inaugural location in Costa Rica. In an exclusive development agreement with franchise partner Pizza in Paradise Sociedad Anonima, led by Jorge Moya and sons Jorge and Jose, has opened Sbarro—known for its extra-large New York-style pizza slice—in Lincoln Plaza in the city of Moravia, with more locations to follow. “The restaurant industry in Costa Rica is very competitive,” says franchise owner Jorge Moya. “The region is saturated with a wide variety of different foods. However, we are also a culture that appreciates quality, and Sbarro’s superior approach to pizza—including freshness, taste, and using only premium quality ingredients—will be embraced.” This exclusive agreement will accelerate the momentum that Sbarro has generated in its recent development efforts, including the opening of more than 40 new restaurants in 2019. “We are very excited to partner with Mr. Moya and family, and to enter the Costa Rican market.  We believe it represents an exciting growth opportunity for Sbarro, and are encouraged by the demand in the region for high quality foods made with only the best ingredients. We are confident that they will be a strong partner who will grow and strengthen our brand,” says Sbarro CEO David Karam. Sbarro currently operates more than 600 stores in 25 countries. – Source: Sbarro.

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