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Archive for July, 2010

There’s no shortage of cooking shows that put chefs on a pedestal, with their gastriques, foams and gelées. But perhaps it’s time to celebrate the most unheralded and hardest-working of them all: the home cook.

Chef Gordon Ramsay says “MasterChef” — his newest cooking competition on Fox — will do just that as it plucks 50 amateur cooks from across the country, average folks who have a passion for cooking, but no formal training. And, in the spirit of Fox’s “American Idol,” it’s Ramsay’s job to see if he can find “a little gem” among them, someone who can go to the next level with the right guidance and grooming.

The winner gets a check for $250,000 and his or her own cookbook, and of course, the title of America’s very first “MasterChef.” (“MasterChef” has been a hit elsewhere, including the U.K. and Australia.)
 
Ramsay dubs the show “Chef Idol” and says audiences will be shocked to discover that some of the best cooking being done in this country is actually being done in home kitchens, not restaurants.

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Whether you want pear chutney grown by local farmers on your sandwich, or an artery-clogging ball of meat and grease for less than a buck, there’s a regional burger chain for you somewhere in America.

While the big three hamburger giants — McDonald’s, Burger King and Wendy’s — still command more than two-thirds of the market in the U.S., the fast food burger landscape has been changing at a breakneck pace.

Five Guys, introduced to the nation last year during a visit by President Barack Obama, has gone from a six-restaurant Virginia-based chain in the early 2000s to a national force with more than 600 restaurants in 48 states in 2010. Colorado-based Smashburger, which didn’t exist before 2007, now has 77 locations in 17 states. Many of the fastest-growing restaurants are so-called “better burger” or “fast casual” restaurants, setting themselves apart with fresher ingredients and menus that are tailored for the communities they serve.

“It has been a sleeping giant for a long time,” says Smashburger founder Tom Ryan. “Burgers are and always have been America’s favorite food, and they’re back.”

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On Wednesday New York City rolled out its new system of awarding letter grades to restaurants. Health Commissioner Thomas Farley presented an A to Spark’s Deli in Long Island City.

“We’re happy to get the A,” said Jose Araujo, co-owner of the 24-seat restaurant located at 2831 Borden Avenue, “but now we have to pay $800 for nonfood-related violations,” he said. Among the nonfood violations the restaurant was cited for was a cashier drinking coffee in a nonfood area.

“Every time a health inspector comes in here, I know it’s going to cost me,” Araujo told the New York Times.

The inspectors also handed out B and C grades; however, customers in the city’s 24,000 restaurants likely won’t see them posted until fall. That is because restaurants that do not receive an A will later be automatically re-inspected, and can appeal their grades at administrative hearings.

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The restaurant that Facebook built

For three years, the brothers Haytham and Nael Nasr toyed with the concept of Mybar, a restaurant-bar that opened last month in the heart of posh downtown Beirut.

Encouraged by investor interest in an earlier pub project, they decided to go ahead with the venture. But instead of going the traditional route to line up investors, the brothers took a more innovative approach: they got funding via YouTube and Facebook.

“The easy solution was to find two or three investors,” says one of the brothers. “However, we wanted to keep the direction of management and spread the risk. Having a larger number of investors also allowed us to tap into a wider customer base, with each investor having their own crowd of friends.

“We started raising money through word of mouth and the use of social media. We wanted Mybar to go viral.”

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BenchWarmers Tavern & Grill late Thursday shuttered its Erie restaurant and two other Denver-area locations after its chief executive officer was arrested on suspicion of a parole violation.

The Erie-based sports bar chain with an adult-friendly theme akin to restaurant company Hooters had an “amazing” business during its past few months of existence, but also had to nix plans to open 17 more locations, said Mindy Bulmer, Benchwarmers’ regional manager.

“We haven’t been paid since June 30,” she said. “Nobody has.”

About 300 people — from its Aurora, Centennial and Erie restaurants — are out of work as a result of the closure, Bulmer said.

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Yum Brands’ fast-fish chain Long John Silver’s has re-upped as a sponsor of Discovery Channel’s Shark Week franchise, buying on-air tune-in spots designed to lure viewers into trying its new Shrimp Trio meal.

Co-branded 15- and 30-second spots for the programming tent pole and the Louisville-based chain went live this week and will remain on Discovery’s air through August 8. Created in-house by the Discovery Studios unit, the spots feature two regular Joes enthusing about Shark Week and LJS’s $5.99 shrimp offering.

“You know, when you’re watching Shark Week you want someone to share it with…but when you have a Long John Silver’s Shrimp Trio, not so much,” says one of the actors as he steers a yellow LJS bag out of his friend’s reach. A great white shark is then seen breaching with a seal clamped in its jaws, and as a pile of shrimp cascades from a colander, a voiceover relates the price point.

The spots conclude with a title card that reads “Happy Shark Week” and the Discovery logo and tag line (“The World is Just Awesome”).

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Over the years the Golden State has proven to be a leader in a number of cutting edge areas often starting trends that eventually spread across the nation. Usually such trends are traced back to the Silicon Valley, Hollywood, Santa Cruz, Berkeley, or places such as Southern California beaches. But there is one other trend setter that is often overlooked and is done so at great risk – the Ninth U.S. District Court of Appeals based in San Francisco.

To say the court has a slightly different bent or leaning than other district courts of appeal is a gross understatement.

If you doubt this just mosey on down to a Chipotle Mexican Grill where you can view the latest handiwork of the court. And make sure you take a tape measure.

The court of appeals ruled Monday that any wall that blocks the view of patrons in wheelchairs of food preparation in a Chipotle restaurant that denies them the same experience as non-disabled customers is a violation of the Americans with Disabilities Act.

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Maze Cape Town, the African outpost of chef Gordon Ramsay’s dining empire, has closed after about 15 months in business at the One & Only Hotel.

“We can confirm that Gordon Ramsay Holdings Ltd.’s engagement as a consultant to One & Only Cape Town has terminated,” the hotel said today in a statement. “The restaurant at One & Only Cape Town no longer trades under the Maze brand.” It gave no reason for the decision.

The chef’s company, run by his father-in-law Chris Hutcheson, switched to operating restaurants around the world on a consultancy basis after losses almost pushed the company into bankruptcy in 2008 following rapid international expansion.

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Along the waterfront, with postcard views of Manhattan across the Hudson River, sweaty devotees of The Taco Truck line up to order lunch, scooting back to cooled-off jobs to eat their slow-braised sweet pork or long-grain rice and beans.

They were lucky. The bright orange beast on wheels doesn’t come around to their spot quite so often since a new bricks-and-mortar sister restaurant opened just up the street.

“I like being outside, but you’ve got the AC at the store — oh yeah,” said Michele Ward, a health club fitness director.

Office workers here have been feasting on the truck’s Mexican street fare as food on the move has taken off around the country. Food trucks have grown so popular in some areas that a growing number of young operators like Jason Scott in Hoboken are becoming less, er, mobile.

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King County prosecutors have filed identity-theft charges against a fast-food worker and two alleged accomplices on allegations that she used a “skimmer” to steal credit card information.

Leveling the allegations on the heels of a similar scheme uncovered earlier this year, prosecutors contend Wendy’s employee Maria Elena DeHoyos-Ortiz used a credit card reader to steal the identities dozens of customers.

Though the investigation is ongoing, 135 compromised accounts were traced back to the Wendy’s, a King County sheriff’s detective told the court. About $75,000 in fraudulent activity has been attributed to those accounts.

The King County Sheriff’s Office launched an investigation into the series of credit card forgeries in October after an investigator with the BECU credit union reported that he had linked violations to several customer accounts to the Tukwila Wendy’s restaurant on International Boulevard.

Continue reading . . .

Dunkin’ Donuts has announced the signing of a store development agreement with Kenny Koza for one new restaurant in Detroit, which will open in 2011. Koza will be developing and managing the restaurant with his brothers Carlo and Derek Koza. Dunkin’ Donuts’ development throughout Detroit is part of a steady and strategic growth strategy, which includes expanding in existing markets while entering new cities across the country to help drive the leading coffee and bakery chain’s growth.

The market is currently home to 55 restaurants and Dunkin’ Donuts is pursuing opportunities to develop Detroit with both existing and new franchisees. Special development incentives are available which include reduced royalty fees for three years and an extra $10,000 in local store marketing for stores that open on time*. Most recently the Clinton Township and Orchard Lake Road restaurants have been remodeled in the company’s 2015 design, which includes a new décor package that reflects the current trends of today.

“I am excited to expand Dunkin’ Donuts’ presence in Detroit and play an important role in the daily lives of people who live, work and visit here,” said Koza. “I have a strong passion and loyalty for the brand and look forward to the opening of my restaurant next year.”

To drive its expansion efforts, Dunkin’ Donuts has aligned its strategy to support the growth opportunities and consumer needs of individual markets. As a result, the company continues to expand with single and multi-unit opportunities with no minimum unit requirements.

Ideally, franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000, but financial qualifications will vary based on the opportunity available by market. This evolution of Dunkin’ Donuts’ franchise sales effort enables the brand to expand in markets more aggressively, while balancing its market penetration and maturity.

“Dunkin’ Donuts is excited to welcome Kenny, Carlo and Derek Koza to the Detroit market,” said Grant Benson, CFE, vice president of franchising and market planning, Dunkin’ Brands, Inc. “We are still looking to expand our presence here and are looking for qualified franchisees with foodservice, operations and real estate experience to join our team in Detroit and encourage prospects to take advantage of our special incentives.”

Building a solid network of stores within a market enables Dunkin’ Donuts to invest in a distribution model that provides a consistent, high-quality product guests expect “in the way and on the way” of their daily routines. In an effort to keep the brand fresh and competitive, Dunkin’ Donuts offers flexible concepts for any real estate format including free-standing restaurants, end caps, in-line sites, gas and convenience, travel plazas, universities, as well as other retail environments.

According to Benson, “Dunkin’ Donuts is proud to energize Americans and keep the honest, hard-working, value-driven people of this country running every day. Our recent and ongoing menu enhancements meet the needs of today’s on-the-go consumers, moving Dunkin’ Donuts beyond breakfast with high-quality food and beverage items available all day.”

Historically a doughnut and hot coffee chain, Dunkin’ Donuts has expanded its offering to include frozen and iced beverages, a full bakery assortment including bagels and muffins, breakfast sandwiches, and an all-day Oven-Toasted menu which includes flatbread sandwiches, hash browns and buttermilk biscuits. The new platform marks the most significant change to Dunkin’ Donuts’ product lineup since the company launched espresso-based beverages in 2003.

In addition to Dunkin’ Donuts expansion, Dunkin’ Brands, the parent company of both Dunkin’ Donuts and Baskin-Robbins, is seeking qualified candidates to be part of an unprecedented growth campaign designed to expand Baskin-Robbins’ presence in various U.S. markets.

Church’s Chicken has been named one of the top franchisors for Hispanic-owned businesses by the World Franchising Network. The company was cited for its profitable businesses led by Hispanic franchise owners as well as its support of the Hispanic communities in which they do business.

“We are proud of our diverse cultures in our franchise system and continue to reach out to engage Hispanic entrepreneurs looking to invest in a business committed to exceptional quality products, great value, operational excellence, and superior guest satisfaction,” said Mel Deane, CEO of Church’s.

”I worked for Church’s in operations for more than thirty-eight years. I had so much passion for the company, its support of franchisees, its products and people, I decided to invest and start my own business with Church’s,” said Mario Sanchez, a Church’s Franchisee. “I now own two Church’s restaurants in Texas that are doing tremendously well.”

NPC International, Inc. today announced its 2010 second fiscal quarter results conference call will be held on Monday, August 9, 2010 at 9:30 a.m. CDT. This call can be accessed in the U.S. by dialing 866-510-0712. The international number is 617-597-5380. The access code for the call is 72484555.

The conference call can also be accessed through the Company’s website at www.npcinternational.com by clicking on the Thomson Financial logo in the investor information section or by accessing the Thomson Financial website at www.earnings.com. For those unable to participate live, a replay of the call will be available until August 16, 2010 by dialing (888)286-8010 or by dialing international at (617)801-6888. The access code for the replay is 92746130. A replay of the call will also be available through the Company’s website.

The Company’s quarterly financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations will be included within the Company’s Form 10-Q to be filed with the SEC on Friday, August 6, 2010 which can be accessed at www.sec.gov.

NPC International, Inc. is the world’s largest Pizza Hut franchisee and currently operates 1,143 Pizza Hut restaurants and delivery units in 28 states.

Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its second quarter ended June 27, 2010.

Highlights for the second quarter of 2010 compared to the second quarter of 2009 were as follows:

  • Total revenues were $89.0 million compared to prior year at $86.4 million.
  • Net income available to preferred and common shareholders was $3.7 million, or $0.09 per diluted share, compared to $2.3 million, or $0.10 per diluted share, in the second quarter of 2009. The second quarter of 2010 included a net benefit of $0.3 million or $0.01 per diluted share. The second quarter of 2009 included net charges of $0.7 million or $0.03 per diluted share.
  • Company-owned comparable restaurant sales for Ruth’s Chris Steak House increased 2.9%. Company-owned comparable restaurant sales for Mitchell’s Fish Market increased 0.9%.
  • Food and beverage costs, as a percentage of restaurant sales, increased 60 basis points to 29.3%, which was primarily driven by unfavorable beef costs.
  • Restaurant operating expenses, as a percentage of restaurant sales, increased 20 basis points to 53.4%.
  • General and administrative expenses were $0.2 million less than prior year at $5.4 million.
  • Depreciation and amortization expenses, as a percentage of total revenues, decreased 50 basis points to 4.3% primarily due to the home office building sale in the fourth quarter of 2009.
  • Interest expense decreased by $0.8 million to $1.0 million in the second quarter of 2010. The second quarter of 2010 included a gain of $0.3 million for a mark-to-market non-cash adjustment relating to an interest rate swap agreement. Interest expense was $1.8 million in the second quarter of 2009, and included a gain of $0.4 million for a mark-to-market non-cash adjustment relating to an interest rate swap agreement.
  • At the end of the second quarter of 2010, the Company had $69.0 million in debt outstanding under its senior credit agreement. This represents a reduction of $5.0 million from the March 28, 2010 balance of $74.0 million.
  • During the period, the Company opened a new Mitchell’s Fish Market restaurant in Winter Park, Florida. In addition, a franchise partner opened a new Ruth’s Chris Steak House restaurant in Salt Lake City, Utah.

Michael P. O’Donnell, President and Chief Executive Officer of Ruth’s Hospitality Group, Inc., stated, “We generated substantial improvement in net income compared to the year-ago period as positive comparable restaurant sales translated into solid operating leverage. We credit four-wall-execution and solid expense management that, over time, should position our brands for further bottom-line improvement. O’Donnell continued, “In addition, our balance sheet remains a competitive advantage, giving us the financial flexibility to pursue opportunistic development. Accordingly, we are actively evaluating restaurant locations on our own and through strategic alliances. In the near-term, any development will be modest, but as always, we will be diligent to only commit capital when the returns are justified.”

Review of Operating Results

Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income, were $89.0 million compared to $86.4 million in the second quarter of 2009.

Company-owned restaurant sales increased 2.6% to $83.8 million for the second quarter of 2010 from $81.7 million in the same quarter last year. Total operating weeks increased 0.2% to 1,120 from 1,118.

Average weekly sales for Ruth’s Chris Steak House were $76.9 thousand in the second quarter of 2010 compared to $74.7 thousand in the second quarter of 2009. Average weekly sales at Mitchell’s Fish Market were $71.8 thousand compared to $71.1 thousand in the prior year second quarter.

For the second quarter of 2010, Company-owned comparable restaurant sales at Ruth’s Chris Steak House increased 2.9%, which consisted of an average check decrease of 0.3% and an entrée increase of 3.2%. Company-owned comparable restaurant sales at Mitchell’s Fish Market increased 0.9%, which consisted of an entrée increase of 0.9%.

Franchise income increased 13.5% to $2.8 million from $2.5 million. Comparable franchise-owned restaurant sales increased 6.1%.

Operating income was $8.3 million in the second quarter of 2010 and $4.5 million in the prior year second quarter.

The Company recognized a $1.1 million pre-tax benefit to operating income primarily related to the termination of a lease in the second quarter of 2010. The Company recognized a pre-tax charge in discontinued operations of $1.1 million during the second quarter of 2010 related to a change in estimate of lease exit costs for two closed restaurants.

Net income available to preferred and common shareholders was $3.7 million, or $0.09 per diluted share, compared to $2.3 million, or $0.10 per diluted share, in the second quarter of 2009. The second quarter of 2010 included a net benefit of $0.3 million or $0.01 per diluted share. The second quarter of 2009 included net charges of $0.7 million or $0.03 per diluted share.

Financial Outlook

Based on current information, Ruth’s Hospitality Group, Inc. is updating its 2010 outlook as follows:

  • Cost of goods sold of 29% to 30% of restaurant sales
  • General and administrative expenses of $22 million to $24 million
  • Effective tax rate of 25% to 30%
  • Capital expenditures of $5 million to $6 million
  • The Company completed its 2010 development plan with the opening of a Mitchell’s Fish Market in June and the opening of a franchised Ruth’s Chris Steak House in May.

Conference Call

The Company will host a conference call to discuss second quarter 2010 financial results today at 8:30 AM Eastern Time. Hosting the call will be Mike O’Donnell, President and Chief Executive Officer, and Bob Vincent, Executive Vice President and Chief Financial Officer.

The conference call can be accessed live over the phone by dialing 888-300-2343 or for international callers by dialing 719-325-2370. A replay will be available one hour after the call and can be accessed by dialing 888-203-1112 or 719-457-0820 for international callers; the password is 7184912. The replay will be available until August 6, 2010. The call will also be webcast live from the Company’s website at www.rhgi.com under the investor relations section.

About Ruth’s Hospitality Group, Inc.

Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) is a leading restaurant company focused exclusively on the upscale dining segment. The Company owns the Ruth’s Chris Steak House, Mitchell’s Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse concepts. With more than 150 Company- and franchisee-owned locations worldwide, Ruth’s Hospitality Group, Inc. was founded in 1965 and is headquartered in Heathrow, Fla.

For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: www.RuthsChris.com, www.MitchellsFishMarket.com, www.MitchellsSteakhouse.com and www.Camerons-Steakhouse.com. For more information about Ruth’s Hospitality Group, Inc., please visit www.rhgi.com.

RUTH’S HOSPITALITY GROUP, INC
Condensed Consolidated Statements of Income – Unaudited
(dollar amounts in thousands, except share and per share data)
 
 
      13 Weeks Ending   26 Weeks Ending
      June 28,     June 27,     June 28,     June 27,
        2009         2010         2009         2010  
                         
Revenues:                        
Restaurant sales     $ 81,705       $ 83,841       $ 173,123       $ 175,006  
Franchise income       2,453         2,785         5,157         5,714  
Other operating income       2,230         2,332         2,835         2,946  
Total revenues       86,388         88,958         181,115         183,666  
                         
Costs and expenses:                        
Food and beverage costs       23,490         24,565         51,018         51,314  
Restaurant operating expenses       43,495         44,789         91,192         91,568  
Marketing and advertising       4,085         2,901         6,903         5,425  
General and administrative costs       5,558         5,359         11,094         10,924  
Depreciation and amortization expenses       4,150         3,857         8,245         7,744  
Pre-opening costs       -         342         16         346  
Loss on impairment       150         -         286         -  
Restructuring benefit       -         (1,121 )       -         (1,683 )
Loss on the disposal of property and equipment, net       925         -         933         -  
Operating income       4,535         8,266         11,428         18,028  
                         
Other income (expense):                        
Interest expense       (1,849 )       (988 )       (4,134 )       (2,318 )
Other       267         (42 )       419         (142 )
                         
Income from continuing operations before income tax       2,953         7,236         7,713         15,568  
                         
Income tax expense       354         2,107         1,316         3,515  
                         
Income from continuing operations       2,599         5,129         6,397         12,053  
                         
Discontinued operations, net of income tax benefit       275         796         328         961  
                         
Net income     $ 2,324       $ 4,333       $ 6,069       $ 11,092  
Preferred stock dividends       -       $ 623         -       $ 931  
Net income available to preferred and common shareholders     $ 2,324       $ 3,710       $ 6,069       $ 10,161  
Basic earnings per share:                        
Continuing operations     $ 0.11       $ 0.11       $ 0.27       $ 0.30  
Discontinued operations       (0.01 )       (0.02 )       (0.01 )       (0.03 )
Basic earnings per share     $ 0.10       $ 0.09       $ 0.26       $ 0.27  
                         
Diluted earnings per share:                        
Continuing operations     $ 0.11       $ 0.11       $ 0.27       $ 0.30  
Discontinued operations       (0.01 )       (0.02 )       (0.01 )       (0.03 )
Diluted earnings per share     $ 0.10       $ 0.09       $ 0.26       $ 0.27  
                         
Shares used in computing net income per common share:                        
Basic       23,571,111         33,945,193         23,527,655         31,050,777  
Diluted       23,754,577         42,800,126         23,655,973         37,660,789  
                                         
RUTH’S HOSPITALITY GROUP, INC
Selected Balance Sheet Data
(dollar amounts in thousands)
 
            December 27,     June 27,
            2009     2010
Cash and cash equivalents           1,681     3,862
Total assets           254,415     251,177
Long-term debt           125,500     69,000
Total shareholders’ equity           41,765     75,613  

As a result of a dampened outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) declined for the third consecutive month in June.  The RPI– a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 99.5 in June, down 0.3 percent from May and the lowest index level since February.  In addition, the RPI stood below 100 for the second consecutive month, which signifies contraction in the index of key industry indicators.

“Although the current situation indicators registered a modest improvement in June, each of the four expectations indicators dipped for the second consecutive month,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.  ”Restaurant operators are generally optimistic that sales and business conditions will improve in the next six months, but the strength of their optimism fell to a five-month low.”

The RPI is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100.  Index values above 100 indicate that key industry indicators are in a period of expansion, and index values below 100 represent a period of contraction for key industry indicators.  The RPI consists of two components, the Current Situation Index and the Expectations Index.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 98.8 in June – up 0.1 percent from its May level.  However, the Current Situation Index remained below 100 for the 34th consecutive month, which signifies contraction in the current situation indicators.  

Restaurant operators reported a net decline in same-store sales for the third consecutive month in June, though the results were a modest improvement from the May performance.  Thirty-nine percent of restaurant operators reported a same-store sales gain between June 2009 and June 2010, up from 35 percent of operators who reported higher sales in May.  Meanwhile, 43 percent of operators reported a same-store sales decline in June, down from 46 percent of operators who reported negative sales in May.

Restaurant operators also reported a net decline in customer traffic levels in June.  Thirty-three percent of restaurant operators reported an increase in customer traffic between June 2009 and June 2010, matching the proportion who reported higher customer traffic in May.  Similarly, 43 percent of operators reported a traffic decline in June, unchanged from the proportion who reported lower traffic in May.

Along with soft sales and traffic results, restaurant operators reported a dip in capital spending activity.  Forty-three percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, down slightly from 45 percent who reported similarly last month.

The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 100.2 in June – down 0.6 percent from May and its lowest level in five months.  Despite the recent declines, the Expectations Index remained above 100 for the sixth consecutive month, which represents expansion in the forward-looking indicators.  

Although restaurant operators are generally optimistic about an improving business environment, their outlook for sales growth dipped in recent months.  Forty-two percent of restaurant operators expect to have higher sales in six months (compared with the same period in the previous year), down slightly from 43 percent last month and the lowest level in five months.  In comparison, 21 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, up from 18 percent who reported similarly last month.

Restaurant operators are also not as optimistic about the direction of the overall economy.  Twenty-eight percent of restaurant operators said they expect economic conditions to improve in six months, down from 33 percent who reported similarly last month and the lowest level in seven months.  In comparison, 21 percent of operators said they expect economic conditions to worsen in the next six months, up from just 10 percent two months ago.  

Restaurant operators’ plans for capital expenditures fell to a six-month low this month.  Forty-one percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down from 46 percent who reported similarly last month.  

The RPI is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor, and capital expenditures. The full report is available online  at www.restaurant.org/pdfs/research/index/201006.pdf.

The RPI is released on the last business day of each month, and more detailed data and analysis can be found on Restaurant TrendMapper (www.restaurant.org/trendmapper), the Association’s subscription-based service that provides detailed analysis of restaurant industry trends.

A chart and a video of the June RPI are available online at www.restaurant.org/pressroom.

On a balmy summer Sunday, Tim Scorer and his girlfriend Emma Jarvis welcome brunch guests to their spacious London flat.

After greeting them, the couple direct their visitors to the garden — a stunning space outfitted with a wood-fired oven — for cocktails and mingling. The scene looks like a typical gathering among friends, except that none of the guests has ever met the young hosts before.

Scorer and Jarvis run The Old Hat Club, one of London’s latest underground restaurants. These supper clubs, which grew from a handful a year ago to close to 100 today, are becoming a favored way for London hipsters to satisfy their exacting palates.

They are part of the British capital’s vibrant underground scene, which ranges from word-of-mouth dance clubs to booze-filled nights where trendy Londoners play Rebel Bingo, a raucous version of the old-fashioned game, on a dance floor throbbing with heavy metal music.

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Coca-Cola’s Freestyle soda fountain machine can blast out 106 different drinks in untold thousands of permutations, using touchscreens and super-strong concentrate in packs that look vaguely like VHS cassettes. It pours drinks at temperatures just above freezing.

No question, the technology provokes oohs and aahs. Now to the bigger question: Will restaurants be impressed enough with the gizmo to help Coca-Cola meet its ambitious goals of covering the country with the machines?

Coca-Cola plans to put 2,000 Freestyle machines in about 15 markets this year, up from about 120 machines in use now. About 20 Freestyle machines are built every day. The machine has reached restaurants in Atlanta, Dallas and southern California. Coming soon: Chicago, Orlando and cities yet to be announced.

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Charles Barkley can do no wrong…even when he does wrong.  And Taco Bell loves him for it.

Regardless of past gambling issues, a DUI conviction, or an equally criminal golf swing, the NBA Hall of Famer and current NBA studio analyst for TNT has proven himself to be spokesperson gold.

Many of us are familiar with his humorous T-Mobile commercials with Dwyane Wade, and from early 2010 through the 2010 NBA playoffs we were treated to his Taco Bell musings regarding the Taco Bell $5 combo meal (“That’s not so ‘turrible’ “, he famously quips with his Southern accent).

According to findings from a Sports Business Journal analysis of data from Turnkey Sports & Entertainment, Taco Bell – which signed on as an NBA partner in July ’09 – is seeing more than 22% of avid NBA fans correctly identify the restaurant as the league’s official QSR (quick service restaurant), up from 3% a year ago.  Casual fans also took note, with almost 15% correctly identifying Taco Bell as the official partner.

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Houston-based restaurateurs Chris and Harris Pappas have agreed to guarantee up to $13 million in Luby’s Inc. debt as the cafeteria chain absorbs the bankrupt Fuddruckers hamburger chain.

The Pappas brothers own 31 percent of the company’s stock, or 8.8 million shares. Chris Pappas is president and chief executive of Luby’s, and Harris Pappas is chief operating officer. The two also operate the popular Pappas Brothers steakhouses and other Pappas-named chains.

Luby’s said Monday it has completed the purchase of Fuddruckers for $63.45 million.

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International Dairy Queen, the ice cream maker owned by Warren Buffett’s Berkshire Hathaway Inc., asked a California court to halt sales of frozen desserts marketed under a name similar to its Blizzard product.

Blizz Frozen Yogurt is causing confusion among customers familiar with Dairy Queen’s best-selling item, the company said in a filing in U.S. District Court in Los Angeles. The request seeks to block Yogubliz Inc.’s use of the Blizz name. Yogubliz filed a pre-emptive suit in May, saying it received threats from Dairy Queen and that the two products are distinct.

Dairy Queen “is suffering irreparable harm and damage to the goodwill” of Blizzard trademarks, the company said in a July 26 filing. Yogubliz’s product is “likely to cause confusion, mistake and deception among consumers.”

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Buffalo Wild Wings experienced a healthy second quarter based on the quarterly earnings report released this week.  The restaurant saw shares soar 28% from 39 cents to 50 cents per share when compared to the same time last year.

The company also reported that total revenues grew 12.4% to $145.7 million when compared to last year.  Sales for company owned stores rose 11.7% fueled by the addition of 19 stores compared to the prior-year quarter.  In addition to the company owned stores, Buffalo Wild Wings franchise royalties and fees increased by 19.5% to $14.2 million with the help of an additional 64 franchise restaurants operating at the end of the quarter.

While most of the news was good, for the first time in four years the company did see a drop in its comparable-stores sales at both company-owned and franchised stores.  Company-owned stores saw a decline in sales of 0.1%, while franchised restaurants experienced a drop of 0.7%.  While the comparable-stores numbers are not great, the average weekly sales for both did increase.  Company-owned stores increased by 0.2% and franchised stores jumped by 0.9%.

Buffalo Wild Wings opened 17 franchise stores and closed one company-owned store during the second quarter. 

Corporate management says that sales in July at both company-owned and franchised stores were up even further this month.  Already on pace to reach their goals of 13%-15% unit growth and 20% net earnings growth for the fiscal year, the company and its shareholders have to be pleased with the prospects of the third quarter.

Domino’s executives and shareholders were a little happier after the latest quarterly earnings reports were released.  The Ann Arbor, MI based company has reported double-digit profit gains for the second quarter of 2010.

Much of the increase has been attributed to Domino’s new pizza recipe and aggressive marketing campaign.  The new recipe, which featured a more flavorful cheese, sauce and crust, was launched late last year in response to several quarters of stagnant domestic sales.

Domino’s profits were up a healthy 55.7% to $22.6 million compared to the same time last year.  The growth was fueled by an increase in domestic and international sales, as well as store growth.  Shareholders saw increases of 57% as shares rose to 33 cents per share.

The first quarter saw the pizza-maker record a 3.2% increase in profits, while enjoying a big jump in sales during the quarter as they rose 14.3%.  The first quarter surge, combined with lower than expected interest rates, drove the second quarter success.

Domino’s international same-stores sales increased by 6.2% for an amazing 66th straight quarter in the black.  The company’s overall revenue rose by 14.5% totaling $362.4 million, well over the $344.5, which had been projected by Wall Street.

Domino’s wasn’t the only pizza-maker who saw impressive second quarter gains.  Competitors Pizza Hut and Papa John’s also saw their earnings and profits rise during the quarter.  Matt DiFrisco, an Oppenheimer analyst, says the success of the three large pizza industry players is evidence of a recovering industry.

Father’s Day had a special meaning this year for Moharrum “Mike” Gulkoparan.

The 39-year-old Turkish immigrant, who was only 13 when he lost his father, Veli Gulkoparan, to cancer at the age of 55, has fulfilled a wish his father had many years ago.

He wanted his then teenage son to one day follow family tradition and become a restaurant owner.

Gulkoparan, who came to the United States in 2001, is the owner and operator of Sweet Home Family Restaurant, one of Huber Heights’ newest eateries, located at 4480 Powell Road in Huber Heights’ Powell Plaza.

“I know he would be proud of me,” said Gulkoparan.

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A popular lunch spot in Bakersfield is tired of customers being on their cell phones while trying to order. Jake’s Tex Mex in Downtown Bakersfield said customers are suffering from cell phoneitis and causing long lines. The management has banned customers from being on cell phones while in line to order.

“We’ve had a major problem with all our customers coming in here and they would be on their cell phone and we would be trying to get the orders through our line,” Jake’s Tex Mex manager Tom Tomlison said. “The customers would say wait a mintue, hold on, I have a phone call, and our line would back up.”

The restaurant says some customers suffer from cell phoneitis, a very scientific term for cell phone addicts.

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In nearly every one of Whataburger’s 700 restaurants, an old black and white photo of a distinctly American slice of 1950s life is displayed, depicting a group of young boys in their Little League uniforms proudly sponsored by Whataburger. To help celebrate its 60th anniversary, Whataburger conducted a multi-state search to reunite original members of that team, and will honor them Wednesday, August 4, on a ball field in Corpus Christi, where the first Whataburger opened in August of 1950.

Players Frank Thomas (#7), Howard Henslee (#6), John Simpson (#5) and Cliff Johnson (#13), now in their 60s, will throw the first pitch at the Corpus Christi Hooks home game at Whataburger Field as friends and families cheer them on. Whataburger will present each player with a custom replica Whataburger jersey and commemorative plaque featuring the photo, and will also recognize player Ray Dulak, who died while serving in the Vietnam War.

“It’s a special feeling to walk into a Whataburger, point at the picture and tell my friends and family – that’s me when I was a little boy!” said Frank Thomas, former Whataburger Athletics player who was instrumental in helping Whataburger find the other players. “Being able to throw the first pitch and reunite with my former teammates has been a dream come true.”

Whataburger founder Harmon Dobson didn’t just put his then-fledgling company name on the team jerseys – he also fed the kids burgers and shakes after each game. The photo of the boys shows them in the restaurant lined up in their uniforms, eagerly awaiting their post-game meal at a Corpus Christi Whataburger.

“Whataburger has been committed to encouraging young athletes from the very beginning, and we’re so proud to bring the guys from that great old photo back together,” said Tom Dobson, Chairman and CEO of Whataburger Restaurants, and son of founder Harmon Dobson. “As the kids used to say, it’s not whether you win or lose, it’s where you eat after the game. We are proud to have been that place for thousands of young athletes through the years.”

Dobson’s support of that Little League team was the start of Whataburger’s longstanding tradition of supporting the communities in which it does business through sports sponsorships. Today, Whataburger has grown its community partnerships through a variety of high school, collegiate and professional sports teams, including the Corpus Christi Hooks. Whataburger also sponsors one of the nation’s most prestigious high school basketball tournaments, the Whataburger Classic.

Texas-based CiCi’s Pizza continues to find record-breaking success as it expands into new franchise markets. The chain, which has more than 600 stores in 35 states, has opened restaurants in two new states, Wisconsin and New York, in the past month and has plans to continue to build operations in new and under saturated markets.

“Using industry-best research practices, we’ve identified key markets across the country with the ideal demographic mix for CiCi’s,” said Jim Sheahan, Vice President of Franchise Sales. “We’re actively recruiting high-quality franchisees in those markets with a combination of in-person Expos and an innovative online portal.”

CiCi’s Pizza has targeted several key areas for growth, including the East Coast, California, Nevada, Arizona and Florida. In July alone, CiCi’s signed deals for eight new restaurant openings in New Jersey, Pennsylvania and Nevada. The chain will open seven new stores by the end of September and continues to conduct franchise Expos. Recent grand openings of New York’s first CiCi’s in DeWitt this month was the best in the company’s history, and sales have remained well above per-unit average.

“Our recent openings have been phenomenal,” Sheahan said. “Given that we’ve had two of our highest-volume openings ever this summer, we anticipate that our new restaurants will continue to see success. Our goal is to find top-notch franchisees across the United States to build even more momentum.”


RestaurantFinanceNYC.com offers restaurants and bars cash advances against future sales in as little as a week.

New York, NY  (RestaurantNews.com)  MoneyNYC, a private money lender specializing in alternative financing, announced that it has launched RestaurantFinanceNYC.com.

MoneyNYC, owned by The W.A.D. Group, LLC, focuses their latest effort on the food and beverage industry, catering to restaurants and bars in the NY, NJ, and CT areas, who are in need of alternative cash.

RestaurantFinanceNYC.com leverages a restaurant or bars anticipated sales or current receivables to advance money ranging from as little as $5,000 to hundreds of thousands of dollars. These advances usually are booked in about a week, and offer proprietors an alternative to cash when credit is an issue and / or banks have turned them down. Their competitive advantage against other firms is their quick application, available at www.RestaurantFinanceNYC.com, and overall turnaround time.

Gary Lockwood, Director of RestaurantFinanceNYC.com said “In any economy it is extremely difficult for restaurants and bars to secure the capital that they need to run their business. It is even more difficult in our current economy. Whether the money is for working capital, expansion, general cash flow, or a defined purpose, our cash advance product works uniquely with each business offering customized payoff schedules for each client.”

MoneyNYC maintains offices in Bronx New York, Hartsdale New York, and Stamford Connecticut.

For more information on RestaurantFinanceNYC, please visit them at www.restaurantfinancenyc.com.


RSI University™ provides a “corporate level training environment” to assist with training implementation and improving team member effectiveness in the restaurant industry

Denver, CO  (RestaurantNews.com)  Denver-based Restaurant Solutions Inc. launches RSI University, an online program that provides independent and multi-unit restaurant managers with corporate level tools for team member training and effective team management. Believing strongly that a properly trained team member contributes greatly to the bottom line, RSI University provides managers and team members with easy-to-use elements that assist with and simplify the training and evaluation processes.

Created with the consumer in mind, the RSI University  program assists new team members and managers with a customized training and educational platform that is designed for success. Specifically, the program provides ongoing educational opportunities as well as a communications channel between management and team members, effectively tying together individual performance evaluation and contributed margin for menu items.   Restaurant Solutions also provides the proven-effective financial management tools and services that have been assisting with measuring success  for the last 10 years. These tools and services offer assistance in payroll; accounts payable; inventory management; financial reporting; product ordering; and menu engineering.

As stated by Blair Pennington, CEO, “Restaurant Solutions Inc. currently provides a variety of effective management systems and services that assist with profit retention and goal achievement to over 800 restaurants in 38 states. With our extensive experience in the business, it was a natural progression for our programmers to create RSI University. Over the years, we have listened to the needs of our clients and believe that this new system will not only meet these needs, but assist our clients in reaching unanticipated levels of success.”

Specific elements of RSI University include:

  • Team member Dashboard: allows for management to view the progress of team members in the training process and evaluate ongoing performance.
  • Virtual Preshift: element has two main functions:
    •  Easily communicate important announcements (i.e. new menu items, meeting times, etc.) to the entire team via email or text message
    • Determine communications effectiveness by monitoring statistical output and results
  • Butts in Seats: assists with the process of integrating social media into overall marketing strategies. The interface allows the operator to manage all social media endeavors under one umbrella and measure effectiveness by directly tying social media marketing efforts to hard sales.
  • Client Education & Servicing: Corporate-level tools and systems that assist with organizational effectiveness, as well as access to industry professionals with expertise in personnel matters, accounting, and tax related needs to answer questions and provide guidance.
  • Right on Time Scheduling System is an efficient way to manage scheduling by tying together weekly sales forecasts, target labor costs, online schedule posting, and online shift swapping.

 Other features of RSI University include:

  • Option to create customized tests for performance evaluation assigned to appropriate team members through a detailed, built-in job code system.
  • Ability to upload and edit multiple types of files from any internet access location.
  • Ability to embed video files directly into the system, with no redirecting to third-party sites.
  • Option to create customized items to meet specific needs.

For more information about Restaurant Solutions Inc., RSI University or to schedule a demo of the RSI Scheduler, please contact Callie Sheffield, Director of National Brand Development at csheffield@restacct.com or 303-458-1204.

About Restaurant Solutions Inc.

Founded in March, 2000, Denver-based Restaurant Solutions Inc. currently supports over 800 restaurants in 38 U.S. states. With a demonstrated success record, Restaurant Solutions Inc. provides a variety of management and services to its clients that assist with retaining higher profits and achieving organizational goals. For more information about Restaurant Solutions Inc. visit http://www.restacct.net or http://www.rsiuniversity.com.

Mike Lungu enjoys trying out something new when it comes to careers, and his latest venture seems to be working out in Blaine.

About nine months ago Lungu opened a restaurant called The Hot Spot near the Blaine Cost Cutter. It serves a variety of food for lunch and dinner, including chicken wings, ribs, sandwiches and burgers.

Lungu was previously a commercial fisherman for 10 years and in the construction industry for 16 years, both careers he jumped into without much experience. About 18 months ago he realized the housing crunch was going to be around a while and decided to pursue another interest: cooking. He didn’t have any restaurant experience, so he learned how it worked and then decided to take a chance.

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