Ruby Tuesday’s was hit hard by the recession, leading some to believe the company would not survive.  Well, they made it.  The company announced that after stocks reached an all-time low in March 2009, shares have increased by 72% so far in 2010 and are closing in on prerecession levels.  The company said consolidating current operations and exploring more profitable restaurant opportunities such as Seafood, Mexican, and Barbecue concepts will continue to be a point of emphasis moving forward.

Debbie Stroud started her career at McDonald’s after speaking to a recruiter at a college job fair more than twenty years ago.  Today she is the Vice President of Quality, Service and Cleanliness for Atlanta region McDonald’s.  During a recent speech to students, faculty, and community members, Stroud showed a video of the riots in Los Angeles in 1992 and how the McDonald’s in the area were safe from damage.  Stroud pointed to McDonald’s diverse hiring practices as a main reason for the restaurants safety, saying that the stores had previously been willing to give former gang members looking to change their life jobs.  Stroud said McDonald’s is just as committed to diversity today as they were nearly twenty years ago and the video shows that diverse hiring practices can offer more than just government compliance.

A Brazilian court has ordered McDonald’s to pay a former franchise manager $17,500 after he gained more than 65 pounds during his 12 years working for the restaurant.  The 32-year-old man said he felt forced to sample the food each day to ensure the quality because the company had unannounced shoppers stop in to rate the quality of the food.  The man said the constant sampling and free meals led to his weight gain.  The company noted that they do have healthy options available.

Niche restaurant stocks have been trading at higher rates recently.  With Wall Street seeing high returns from companies such as Chipotle and BJ’s Restaurants, investors are betting on restaurants to provide sizeable returns.  Positive indicators in the restaurant industry during recent months have led investors to believe a full recovery for the industry is around the corner.

Food trucks are no longer just for low-cost startup restaurateurs.  A growing number of chains are now delving into the emerging low overhead, high return market.  Industry experts expect major chain restaurants to enter the field by the end of next year.  The National Restaurant Association has even taken notice, as for the first time it has set aside space specifically for exhibitors dedicated to mobile food vendors at its national convention.

The Pacific Northwest is expected to have a wet and messy winter once again.  The expected conditions are nothing new for many mobile cart vendors who traditionally see a falloff in sales during the colder months.  This year, many vendors are adding awnings and offering other forms of shelter in an effort to encourage customers to brave the weather.

The Illinois division of Sysco Corp is the likely culprit of food distributed to Subway linked to a salmonella outbreak.  The Centers for Disease Control and Prevention said that contaminated produce was the likely cause of the outbreak.  Sysco is the common link between the Subway illnesses.  Sysco has said that all of the produce it delivered on those shipments was prepackaged and not Sysco produce, making it unlikely that the produce was contaminated while in the company’s possession.

The restaurant industry is adding jobs at a rapid pace.  In September, the industry created 34,000 of the new 64,000 private sector jobs around the country.  Many of the new employees are recent college graduates looking to make a career in the industry.  With fewer opportunities available for college graduates, many are making the decision to enter into restaurant management programs at restaurants around the country.

For just $100,000, you can dress just like Lady Gaga.  The Old Homestead Steakhouse has recreated the raw meat dress the eccentric singer wore to the VMA’s.  The dress is made from more than 110 pounds of raw meat.  In case you do not want to wear the real thing, more reasonable versions of the outfit are expected to be one of the most popular costumes for adults this Halloween.

Saladworks has announced the addition of two new soups to their already long soup list.  The company is adding Creamy Roasted Corn Tomato with Smoked Cheddar and Hearty Chicken Pot Pie soup to the menu.  The new soups bring the total number of permanent soups on the menu to 15.  Each of the additions has less than 140 calories per serving.

Zagat released the 2011 America’s Top Restaurants guide on Wednesday.  The guide contains ratings and reviews of more than 1,500 of the top dining establishments across the United States.  Avid diners and foodies submit ratings and reviews with more than 150,000 reviews submitted for this year’s guide. 

Wendy’s wants to remind everyone that not only were they the original 99¢ Value Menu creator, but they still have the best food for the value as well.  The Wendy’s 99¢ Everyday Value Menu has seven customer favorites with the same great ingredients at an affordable price.  Wendy’s value menu has been in place for more than 20 years.

Taco Bueno has announced the rollout of the Taco Bueno Choice Menu.  The new menu features nine low calorie dishes.  The restaurant is making an effort to offer its more health conscious guests a suitable option for their nutritional choices.  Items on the new menu range from 180-450 calorie dishes.

Royal Caribbean International and Starbucks have teamed up.  The coffee giant now has a café on the cruise company’s Allure of the Sea.  The ship is Royal Caribbean’s largest and most revolutionary design along with sister ship Oasis of the Seas.

The last of three former OSI Restaurant Partners has pled guilty to stealing nearly $2 million from the company.  Mark T. Watson entered a guilty plea in a case where federal prosecutors claimed Watson and two other OSI employees paid invoices for shell companies and fraudulently wired the money into another account.  All three men have now pled guilty to the charges.  Watson was a supervisor in the company’s treasury department.

Antico Pizza Napoletana is already recognized as some of the best pizza in Atlanta, and now Italy is taking notice.  Antico was chosen to receive the prestigious Top in Class award for the United States by the famous 2-day Festa Della Pizza in Salerno, Italy to celebrate the best pizzas from around the world.  Salerno is the birthplace of the original pie.

UFood Restaurant Group has submitted an application for a listing in the Franchise Registry with the U.S. Small Business Administration.  Part of the company’s strategic growth plan is making it easier for franchisees to have access to financing, allowing them to start or invest in franchise restaurants.  Being listed in the Franchise Registry will streamline the process for franchisees looking to secure investment finances.

Brinker International has announced the results for their first fiscal quarter ending September 29, 2010.  The results indicate that diluted earnings per share increased to $0.21 from $0.12 in last year’s same quarter.  The company also announced that restaurant operating margin increased by 15% and that dividends for the first quarter were paid at a rate of $0.14, up 27.3% from a year ago.

Famous Dave’s of America released the results for their third fiscal quarter.  The company results show an increase of net income from $1.2 million to $1.5 million when compared to the same quarter last year.  Revenue for the company increased from $33.3 million to $38.7 million over the same time, and earnings per diluted share moved from $0.13 to $0.17.

CiCi’s Pizza is all about manners.  Beginning November 1 and running through the end of the month, the restaurant will offer pocket-sized “Thank Yous Count” trackers to parents.  Parents are encouraged to mark the card each time their child offers an unprompted “thank you”.  Once the card is full, parents can redeem it for a free kids 10 and under buffet with the purchase of an adult buffet.  The promotion is part of the company’s commitment to community and courtesy.

It was arguably one of the riskiest marketing campaigns of all time — so how, exactly, did Domino’s get its “Oh Yes We Did” campaign, which touted a revamp of pizza by admitting the previous version was terrible?

“We had to do something” because sales were so bad, said Russell Weiner, chief marketing officer, speaking at Ad Age’s IDEA Conference today. “And we had the right people in the right situation and the right agency.”

But perhaps the most interesting reason was that Mr. Weiner & Co. were pitching the campaign to a company CEO who, unbeknownst to anyone else, was leaving the company.

Continue reading . . .

This district’s Court of Appeal has thrown out a class action suit alleging that food restaurant chain Chipotle Mexican Grill violated labor laws by denying employees meal and rest breaks.

Div. Eight, in an opinion published yesterday, ruled that employers must provide employees with breaks, but need not ensure that employees take them.

Former Chipotle employee Rogelio Hernandez sued the company after he was terminated in 2006. He sought to certify a class of thousands of current and former non-managerial employees who worked millions of shifts for Chipotle beginning in July 2003.

Continue reading . . .

A handful of McDonald’s employees in northeastern Ohio received handbills in their most recent paychecks suggesting they vote for three Republican candidates.

“If the right people are elected we will be able to continue with raises and benefits at or above our present levels,” the insert said. “If others are elected we will not.”

The fast food chain’s corporate headquarters in Oak Brook, Ill., quickly condemned the action by Canton franchisee Paul Siegfried, saying it violated company policy. Secretary of State Jennifer Brunner, the Democratic elections chief, said she was launching an investigation because the action appeared to violate Ohio election laws.

Continue reading . . .

The Board of Directors of Mexican Restaurants, Inc. announced it has taken definitive action to voluntarily delist its common stock on NASDAQ. Subsequent to the delisting, the Company intends to deregister its common stock and suspend its reporting obligations under the Securities Exchange Act of 1934 (the “Exchange Act”). The Company is taking these steps in order to avoid various public company costs, including Sarbanes-Oxley Act costs, that the Company believes disproportionately affect smaller publicly traded companies. The Company intends to maintain a market in its common shares by having the shares listed on a quotation service that does not require an issuer to be registered with the Securities and Exchange Commission (“SEC”) such as the Pink Sheets, but currently has no arrangement for listing in place. The Company is eligible to deregister its common stock under the Exchange Act because it has fewer than 300 shareholders of record.

Notwithstanding the deregistration, the Company will continue to maintain a system of internal controls over financial reporting to ensure the continuing accuracy and reliability of results of operations reported to its shareholders. Following deregistration, the Company will no longer bear the financial burden of complying with the Exchange Act and the Sarbanes-Oxley Act of 2002, legal and auditor reviews of SEC disclosures, as well as accounting and other administrative expenses related to the Company’s NASDAQ listing and SEC reporting requirements.

The Board of Directors believe that the Company’s stockholders will be better served if the Company spends more of its financial resources and management’s time on the Company’s business without the substantial cost and time associated with having to comply with NASDAQ rules and SEC reporting obligations. The Board of Directors’ determination to delist, deregister and suspend its public reporting obligations followed extensive deliberations of the advantages and disadvantages of no longer being a public reporting company and careful consideration of the recommendations of an independent board committee and the advice of the Company’s legal counsel and other outside advisors. The Board of Directors and management believe that the expense reductions inherent in delisting and deregistering the common stock will benefit the Company and its shareholders.

Curt Glowacki, the Company’s CEO, stated, “We’re taking this important step with our shareholders’ interests in mind. The burden of reporting under the Exchange Act, and in recent years the added burden of numerous Sarbanes-Oxley requirements, has become too expensive for many small companies such as Mexican Restaurants. After careful consideration, the Company believes that by having our stock listed on the over-the-counter market and deregistering our common stock, we can re-invest significant resources to help drive growth and profitability. We believe that by utilizing the over-the-counter market platform, material savings can be achieved while still providing reliable information to our shareholders.”

Mexican Restaurants, Inc. operates and franchises 72 Mexican restaurants. The current system includes 55 Company-operated restaurants, 16 franchisee operated restaurants and one licensed restaurant.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: growth strategy; dependence on executive officers; geographic concentration; increasing susceptibility to adverse conditions in the region; changes in consumer tastes and eating habits; national, regional or local economic and real estate conditions; demographic trends; inclement weather; traffic patterns; the type, number and location of competing restaurants; inflation; increased food, labor and benefit costs; the availability of experienced management and hourly employees; seasonality and the timing of new restaurant openings; changes in governmental regulations; dram shop exposure; the potential consequences of delisting and deregistering the Company’s stock; and other factors not yet experienced by the Company. The use of words such as “believes”, “anticipates”, “expects”, “intends” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Readers are urged to carefully review and consider the various disclosures made by the Company in this release and in the Company’s most recent Annual Report and Form 10-K, that attempt to advise interested parties of the risks and factors that may affect the Company’s business.

 

Saladworks, the nation’s first and largest fresh-tossed salad franchise concept, is proud to announce that its series of regional television commercials has won a 2010 People’s Telly Award. Produced by Emmy award winning Joe Schreiber and his team at Mattmar Productions, the Saladworks Commercial Campaign highlighted the franchise concept’s line of seasonal salads, available in stores in 2009. The campaign won a bronze award in the regional TV commercial category.

The Telly Award honors outstanding local, regional, and cable TV commercials and programs, as well as the finest video and film productions, and web commercials, videos and films. The Telly Awards is a widely known and highly respected national and international competition and receives over 11,000 entries annually from all 50 states and many foreign countries.

“The recognition from the 2010 Telly Award is a wonderful acknowledgement of the collaboration with Saladworks and InterArch, which fostered the creativity and production of the commercial campaign,” said Joe Schreiber, President of Mattmar Productions. “Mattmar Productions salutes the support of the franchisees and corporate management that enabled this production to brought in on time, on budget, and most importantly, help drive business growth.”

“The Saladworks commercial campaign was wildly successful for us as brand, as well as for our franchisees,” said Saladworks Founder/CEO, John Scardapane. “Sales in our Philadelphia market showed over a 10% increase during the run of the commercials. This success was garnered with the help of the teams at Mattmar Productions and InterArch in creating such an influential and fun campaign. We’re thrilled to be recognized with a 2010 Telly Award.”

Sales and traffic levels rose in September; Operators’ outlook improved

Washington, D.C.  (RestaurantNews.com)  Driven by improving same-store sales and customer traffic levels, as well as growing optimism among restaurant operators, the outlook for the restaurant industry improved in September.  The National Restaurant Association’s Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.3 in September, up a solid 0.8 percent from its August level.  In addition, the RPI rose above 100 for the first time in five months, which signifies expansion in the index of key industry indicators.

“The RPI’s solid gain in September was the result of broad-based improvements among both the current situation and forward-looking indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association.  “Restaurant operators reported positive same-store sales and customer traffic levels for the first time in six months, which propelled the RPI’s Current Situation Index to its highest level in nearly three years.”

“In addition, restaurant operators are more optimistic about sales growth in the months ahead, while their outlook for the economy rose to its strongest level in five months,” Riehle added.

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 99.4 in September – up 0.5 percent from August and its strongest level since October 2007.  However, the Current Situation Index remained below 100 for the 37th consecutive month, as the softness in the labor and capital expenditure indicators outweighed the gains in same-store sales and customer traffic. 

Restaurant operators reported a net increase in same-store sales for the first time in six months in September.  Forty-four percent of restaurant operators reported a same-store sales gain between September 2009 and September 2010, up from 38 percent of operators who reported higher sales in August.  Meanwhile, 38 percent of operators reported a same-store sales decline in September, down from 43 percent of operators who reported negative sales in August.   

Restaurant operators also reported a slight uptick in customer traffic levels in September.  Thirty-eight percent of restaurant operators reported an increase in customer traffic between September 2009 and September 2010, while 37 percent of operators reported a traffic decline.  In August, 35 percent of operators reported an increase in customer traffic levels, while 42 percent reported a traffic decline.

Despite the improvements in sales and traffic levels, restaurant operators reported a slight dropoff in capital spending levels in recent months.  Forty-two percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, down from 44 percent of operators 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 101.1 in September – up 1.0 percent from August and its strongest level in five months. 

Restaurant operators are more optimistic about an improving sales environment in the months ahead  Forty-three percent of restaurant operators expect to have higher sales in six months (compared with the same period in the previous year), up from 38 percent who reported similarly last month.  In comparison, 14 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, compared with 17 percent who reported similarly last month.

Restaurant operators are also more bullish about the direction of the overall economy.  Thirty-eight percent of restaurant operators said they expect economic conditions to improve in six months, up from 25 percent last month and the strongest level of optimism in five months.  In comparison, just 16 percent of operators said they expect economic conditions to worsen in the next six months, down from 21 who reported similarly last month. 

Along with an improving outlook for sales and the economy, restaurant operators’ plans for capital expenditures also grew.  Forty-seven percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, up from 42 percent who reported similarly last month and the strongest level in five months.

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.

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.

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 945,000 restaurant and foodservice outlets and a workforce of nearly 13 million employees. Together with the National Restaurant Association Educational Foundation, the Association works to lead America’s restaurant industry into a new era of prosperity, prominence, and participation, enhancing the quality of life for all we serve. For more information, visit our Web site at www.restaurant.org.

The Melting Pot Restaurants join St. Jude Children’s Research Hospital in the seventh annual Thanks and Giving campaign from Nov. 1 – Dec. 4, to “give thanks for the healthy kids in your life, and give to those who are not” by donating to cancer research.

“The Melting Pot of Atlantic City was the No. 1 fundraiser during the Thanks and Giving campaign for St. Jude out of all The Melting Pot Restaurants in 2009, and I’m proud to be leading The Melting Pot’s efforts for the 2010 program to break all previous records as we strive to help our partner find cures for cancer,” said Charlie Haney, co-chair of The Melting Pot’s Thanks and Giving campaign and owner of The Melting Pot of Atlantic City. “Giving back to the community during programs like this are rewarding for our employees and guests, especially during the holiday season.”

With every donation of $10 or more, guests will receive a Fondue for the Kids card that offers $20 off any future purchase of $50 or more. All proceeds from the Fondue for the Kids card will be donated to St. Jude. The Melting Pot Restaurants also offer additional support for St. Jude with the ongoing Fondue a Cure for Childhood Cancer signature chocolate fondue bars. For each $5 bar purchased, $1 is given to the hospital.

Since becoming a partner in 2003, The Melting Pot Restaurants have raised more than $5 million for St. Jude.

In 2010, St. Jude was ranked the most trusted charity in the nation in a public survey conducted by Harris Interactive, as well as named the nation’s No. 1 children’s cancer hospital for 2010-2011 by U.S. News & World Report. It is the nation’s leading pediatric research and treatment center devoted solely to children with cancer and other catastrophic diseases and the only Hospital that covers all of the costs for treatment, travel, food, and lodging for a patient and a family member. At St. Jude, no child is ever turned away because of a family’s inability to pay.

Since opening its doors in 1962, St. Jude has developed protocols that have helped push survival rates for childhood cancers from less than 20 percent to 80 percent overall. In fact, the survival rate for the most common form of childhood cancer, acute lymphoblastic leukemia, has risen from just 4 percent in 1962 to 94 percent today.

For more information or to make a donation, visit http://www.meltingpot.com/fondueforthekids, or call 1-800-4STJUDE. The Melting Pot chocolate fondue bars and Fondue for the Kids cards can also be purchased online at http://www.meltingpot.com.

Wendy’s International, Inc. and its Miami-based Hispanic advertising agency The Bravo Group, announce the launch of Wendy’s “Sabor de Verdad” advertising campaign for the U.S. Hispanic consumer market.

The central theme, “Sabor de Verdad,” loosely translated as “Real Taste,” neatly encompasses Wendy’s core principals of superior, quality food prepared with fresh ingredients, while appealing to Hispanic customers’ savvy and appreciation for real, quality, tasty food. “Sabor,” representing taste, flavor and character, and “de verdad” meaning authentic, real and true, plainly spell out Wendy’s food philosophy for Hispanic customers.  

“Our research shows that the phrase ‘Sabor de Verdad’ produces a strong, emotional connection for Hispanic consumers with its multi-faceted meanings — authentic food with true flavor from Wendy’s,” said Bravo Renee Lavecchia, Vice President, Managing Director. “It communicates the benefits and value of Wendy’s ‘real’ strategy in a fresh, memorable way for Hispanic consumers.”

In conjunction with the “Sabor to Verdad” launch, Wendy’s plans to introduce expanded offerings to their 99 cents Everyday Value Menu at participating Wendy’s. For Hispanic customers, advertising will focus on the ability to enjoy “sabor de verdad” by satisfying whatever “antojos” or taste cravings they may have  — at an everyday, affordable price point of 99 cents.

“In addition to showing dedication to quality, fresh food, Wendy’s seeks to build faith among the more than 45 million U.S.-based Hispanics that we will deliver the best tasting fast food experience every time at everyday prices,” said Wendy’s Bob Holtcamp, SVP Brand Marketing. ‘Sabor de Verdad’ provides a platform for a long-term campaign aimed at our ever-growing Hispanic consumer base, while directly reflecting our goal to be the ‘real choice in fast food’.”

Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its third quarter ended September 26, 2010.

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

• Total revenues were $79.8 million compared to $76.1 million in the prior year.
• Net loss available to common shareholders of $0.5 million, or $0.01 per diluted share, compared to a net loss of $1.0 million, or $0.04 per diluted share, in the third quarter of 2009. The third quarter of 2009 results included restructuring costs related to two restaurant lease terminations of $0.4 million or $0.01 per diluted share.
• Company-owned comparable restaurant sales for Ruth’s Chris Steak House increased 4.9%. Company-owned comparable restaurant sales for Mitchell’s Fish Market decreased 2.8%.
• Food and beverage costs, as a percentage of restaurant sales, increased 80 basis points to 30.0%, which was primarily driven by unfavorable beef costs.
• Restaurant operating expenses, as a percentage of restaurant sales, decreased 40 basis points to 56.1%.
• General and administrative expenses were $5.4 million, unchanged from the prior year.
• Depreciation and amortization expenses, as a percentage of total revenues, decreased 60 basis points to 4.8% primarily due to the home office building sale in the fourth quarter of 2009.
• Interest expense decreased by $0.9 million to $1.0 million in the third quarter of 2010.
• At the end of the third quarter of 2010, the Company had $67.0 million in debt outstanding under its senior credit agreement. This represents a reduction of $2.0 million from the June 27, 2010 balance of $69.0 million.

Michael P. O’Donnell, Chairman, President and Chief Executive Officer of Ruth’s Hospitality Group, Inc., stated, “During the third quarter, we generated our strongest comparable restaurant sales at the Ruth’s Chris brand since the fourth quarter of 2006, and that helped narrow our net loss compared to the year-ago period. Against a backdrop of continued economic uncertainty, we were pleased with this progress and continue to work diligently to improve top line trends at both brands while managing expenses carefully.”

O’Donnell continued, “We are also pleased to have restarted the development process at the Ruth’s Chris Steak House brand by evaluating sites for Company-owned restaurants and seeking alliances with the gaming and hospitality industries. We are also pursuing Company development at Mitchell’s Fish Market, where we believe that the Florida market represents a strong opportunity. We have strengthened our balance sheet, and now believe prudent development is an attractive use of our capital. We look forward to communicating our first development agreement as soon as it is signed.”

Review of Operating Results

Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income, were $79.8 million compared to $76.1 million in the third quarter of 2009.

Company-owned restaurant sales increased 4.4% to $76.9 million for the third quarter of 2010 from $73.6 million in the same quarter last year. Total operating weeks increased 1.2% to 1,131 from 1,118.

Average weekly sales for Ruth’s Chris Steak House were $69.3 thousand in the third quarter of 2010 compared to $66.1 thousand in the third quarter of 2009. Average weekly sales at Mitchell’s Fish Market were $66.4 thousand compared to $67.9 thousand in the prior year third quarter.

For the third quarter of 2010, Company-owned comparable restaurant sales at Ruth’s Chris Steak House increased 4.9%, which consisted of an entrée increase of 5.3% offset by an average check decrease of 0.3%. Company-owned comparable restaurant sales at Mitchell’s Fish Market decreased 2.8%, which consisted of an entrée decrease of 2.5% and an average check decrease of 0.3%.

Franchise income increased 11.7% to $2.6 million from $2.4 million. Comparable franchise-owned restaurant sales increased 6.8%.

Operating income was $1.6 million in the third quarter of 2010 and $1.0 million in the prior year third quarter, which included a $0.4 million charge for lease terminations

Net loss available to common shareholders was $0.5 million, or $0.01 per diluted share, compared to a net loss of $1.0 million, or $0.04 per diluted share, in the third quarter of 2009. The third quarter of 2009 results included restructuring costs related to two restaurant lease terminations of $0.4 million or $0.01 per diluted share

Financial Outlook

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

• 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

Michael P. O’Donnell Named Chairman of the Board

Effective immediately, Michael P. O’Donnell, who has served as the Company’s President and Chief Executive Officer since August 2008, was named Chairman of the Board of Directors. In his new capacity, Mr. O’Donnell replaces Robin P. Selati, who has served as the Chairman of the Board of Directors since April 2008 and as a member of the Company’s Board of Directors since 1999. Mr. Selati will continue to serve the Company in a newly created position of Lead Director.

Conference Call

The Company will host a conference call to discuss third quarter 2010 financial results today at 8:30 AM Eastern Time. Hosting the call will be Mike O’Donnell, Chairman, 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 800-474-8920 or for international callers by dialing 719-457-2633. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the password is 6746399. The replay will be available until November 5, 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												39 Weeks Ending
						September 27,						September 26,						September 27,						September 26,
						2009						2010						2009						2010
Revenues:
Restaurant sales						$		73,646				$		76,913				$		246,770				$		251,919
Franchise income								2,367						2,645						7,524						8,358
Other operating income								126						284						2,961						3,231
Total revenues								76,139						79,842						257,255						263,508
Costs and expenses:
Food and beverage costs								21,520						23,040						72,538						74,353
Restaurant operating expenses								41,644						43,155						132,836						134,724
Marketing and advertising								2,011						2,799						8,914						8,224
General and administrative costs								5,374						5,380						16,468						16,304
Depreciation and amortization expenses								4,130						3,839						12,375						11,583
Pre-opening costs								-						38						16						384
Loss on impairment								-						-						286						-
Restructuring expense (benefit)								419						-						419						(1,683	)
Loss on the disposal of property and equipment, net								87						-						1,020						-
Operating income								954						1,591						12,383						19,619
Other income (expense):
Interest expense, net								(1,926	)					(1,000	)					(6,060	)					(3,318	)
Other								(59	)					(2	)					359						(145	)
Income (loss) from continuing operations before income tax								(1,031	)					589						6,682						16,156
Income tax expense (benefit)								(113	)					235						1,203						3,749
Income (loss) from continuing operations								(918	)					354						5,479						12,407
Loss on discontinued operations, net of income tax benefit								36						120						363						1,081
Net income (loss)						$		(954	)			$		234				$		5,116				$		11,326
Preferred stock dividends								-						623						-						1,555
Accretion of preferred stock redemption value								-						88						-						220
Net income (loss) available to preferred and common shareholders						$		(954	)			$		(477	)			$		5,116				$		9,551
Basic earnings (loss) per common share:
Continuing operations						$		(0.04	)			$		(0.01	)			$		0.23				$		0.27
Discontinued operations								-						-						(0.01	)					(0.03	)
Basic earnings (loss) per share						$		(0.04	)			$		(0.01	)			$		0.22				$		0.24
Diluted earnings (loss) per common share:
Continuing operations						$		(0.04	)			$		(0.01	)			$		0.23				$		0.27
Discontinued operations								-						-						(0.01	)					(0.03	)
Diluted earnings (loss) per share						$		(0.04	)			$		(0.01	)			$		0.22				$		0.24
Shares used in computing net income per common share:
Basic								23,603,180						33,975,061						23,552,830						32,025,538
Diluted								23,603,180						33,975,061						23,711,674						39,380,308
RUTH’S HOSPITALITY GROUP, INCSelected Balance Sheet Data
(dollar amounts in thousands)
						December 27,						September 26,
						2009						2010
Cash and cash equivalents						$		1,681				$		3,086
Total assets								254,415						247,188
Long-term debt								125,500						67,000
Total shareholders’ equity								41,765						75,834

CAMBRIDGE, Mass.  (RestaurantNews.com)  TextMyFood, LLC, is pleased to announce successful tests of its new service at Boston-area restaurants, Grand Canal and Charlie’s Kitchen. The TextMyFood system provides an enhanced restaurant experience for guests and helps restaurants grow their revenue.

There are now over 2.4 billion active text messaging users[1], many of whom are young professionals. TextMyFood caters directly to this group by enabling them to send quick requests to their server when their server is out of view. The requests are displayed for the server on a touch screen provided by TextMyFood.

According to Kevin Tinsley, general manager of Grand Canal, “The system has not only created a positive buzz at our restaurant, but our revenue has gone up noticeably since we installed it. The system has especially appealed to our younger guests. They have been ordering more second drinks, apps, and even desserts since it has been installed.”

“Text messaging is such an integral part of the lives of young professions today, that TextMyFood simply provides a natural extension for making quick requests for service,” said Bob Nilsson, president of TextMyFood. “Even where service is at its best, it is simply not possible for servers to be in view of their guests 100% of the time.”

The system has also come to the attention of several Boston Yelp users. One elite user called it “genius” and another posted that it “is really cool you can text your waitress from the table.”

Based on the testing, the system is shown to be best suited for restaurants with at least 100 seats. Regarding return on investment, the tested showed that the service can pay for itself in additional revenue during the first week of the month.

About TextMyFood, LLC

TextMyFood of Cambridge, MA, is in the business of improving the restaurant guest experience through emerging communication technologies. With the TextMyFood service, guests can make short requests for additional drinks, appetizers, desserts, the check, and other items, if their server is out of view. Guests simply send a text message from their cell phone to the system’s touch-screen display station. By making it easier and even fun to order that second round and additional appetizers, guests order more at the restaurants where the system is in use. The system can also send out restaurant promotional messages to guests who have opted in to receive them. For more information visit www.TextMyFood.com.

Contact: pr@textmyfood.com
(617) 444-9998

[1] Wikipedia http://en.wikipedia.org/wiki/SMS

Meteorologists are predicting a particularly wet and stormy winter.

So what does that mean to Portland’s burgeoning food-cart scene? Hopefully not as much as in years past.

This year, some Portland food-cart owners and lot managers are taking steps to stave off the typical bruising decline in business over the cold months.

Last winter some cart pods had covered seating areas, a few were even heated. Business, however, was still tough. “It was brutal,” said Michael Kennett, owner of Venezuelan cart Fuego de Lotus. “I was at Alberta. I had just opened so nobody knew me. I had some $5 days. My gray water froze.”

This year with his cart’s reputation well-established, he is more optimistic about the winter.

Continue reading . . .

Are we becoming a nation of hamburger flippers?

While it remains incredibly tough to find a job in almost any field, the restaurant business has been adding workers at a considerable clip.

In September, restaurants and bars in the U.S. added 34,000 jobs. In that same month, the entire private sector added just 64,000 jobs.

“The economy has recovered a little bit and people want to eat out,” said Jack Russo, senior consumer analyst for Edward Jones Investments. That has spurred hiring and prompted enthusiasm on Wall Street, where investors are hungry for any morsel of good news.

Continue reading . . .

An Illinois division of Houston-based Sysco Corp. likely distributed the food linked to a salmonella outbreak at Subway restaurants earlier this year, and produce was the likely culprit.

While it remains uncertain exactly how consumers became ill, signs point to Lincoln, Ill.-based Sysco Central Illinois Inc. as the distributor, just as they earlier pointed to Subway as the restaurant, Melaney Arnold, a spokeswoman for the Illinois Department of Public Health, said Oct. 27.

“Sysco had no role in processing or repacking the produce, so contamination in a Sysco facility was near impossible,” said Mark Palmer, vice president of corporate communications for Sysco’s corporate office.

Continue reading . . .

Debbie Stroud, Vice President of Quality, Service and Cleanliness for McDonald’s Atlanta Region, shared her 20 years of experience with students, faculty and members of the community on Tuesday in the Special Collections Room of the NGCSU Library and Technology Center.

Included in her presentation were commercials, personal reflections and free insulated coffee mugs for attendees.

Stroud’s career with McDonald’s began innocently enough. While standing in line at a collegiate job fair, she found herself in front of the representative from the Golden Arches, and offered a greeting and resume.

Today she is responsible for 780 restaurants generating $1.9 billion in sales. This, Stroud equated with “running a little Fortune 500 company right here in Atlanta.”

Continue reading . . .

Food franchises are taking to the road.

A small but growing number of chains—such as Cousins Submarines Inc., Tasti D-Lite LLC and Toppers Pizza Inc.—are following in the tire tracks of those local food-truck businesses popping up on city streets around the U.S. Many brick-and-mortar eateries have added mobile units in recent years, and more are expected to do the same, including national brands.

“By the end of next year, you’ll begin to see some big brands rolling this out,” says Robert Stidham, president of Franchise Dynamics LLC, a Homewood, Ill., company that helps businesses develop franchises. Mr. Stidham says he’s been involved in “serious” discussions with about a half-dozen national food franchises on strategies for going mobile. He declined to name specific chains.

Continue reading . . .

In a bid to restart its growth, restaurant company Ruby Tuesday (RT) is going off its time-tested menu: Rather than expand its eponymous flagship chain, the company will make forays into Mexican, barbecue, and seafood dining it expects to be more profitable.

Ruby Tuesday, based in Maryville, Tenn., was arguably the hardest, and earliest, hit in a restaurant category—known as casual dining—that bore the brunt of American frugality over the past three years. According to Raymond James estimates, the chain’s individual restaurant sales dropped 20 percent from their peak in the second quarter of 2004 to their low in the third quarter of 2009. Its shares plummeted to an all-time low of 91¢ in March 2009 on bankruptcy fears.

“Some people in the investment community thought we wouldn’t survive,” Samuel “Sandy” Beall, Ruby Tuesday’s founder, chairman, president, and chief executive, tells Businessweek.com. “We didn’t think that.”

Continue reading . . .

A Kingsville man who owned restaurants in Baltimore and Anne Arundel counties was sentenced to four months in federal prison Thursday followed by four months’ home detention after pleading guilty to the “harboring of unlawful aliens for financial gain.”

George Anagnostou, 41, will report for incarceration on Jan. 3, leaving behind his four children, a troubled marriage and an ailing business — having already sold at least two others to pay his bills. He was ordered to forfeit nearly $750,000 in assets to the government earlier this month.

“His perspective that the rules didn’t apply to him have led him here today,” said Assistant U.S. Attorney Rachel Miller Yasser. He broke the law “continuously for 11 years straight.”

Continue reading . . .

Niche restaurant stocks have been trading sharply higher after well-received earnings from a few of the industry stalwarts. Chipotle Mexican Grill (CMG) rallied 19% in the days immediately following its Q3 announcement. Not to be outdone, BJ’s Restaurants Inc. (BJRI) tacked on as much as 22% to the delight of long-term investors.

Even long-time industry standards like Cheesecake Factory Inc. (CAKE) are experiencing stock advances that seem to outpace any improvement in the fundamental state of the business.

Bullish arguments point to lofty management goals of new store openings, and stronger margins due to cost-cutting and closings of unprofitable locations. But bearish traders continue to see weak nationwide employment as an impediment to growth, and rising food costs could very well cut into margins in coming quarters.

Continue reading . . .

Fans of Lady Gaga’s hit record, “Fame Monster” can now dress the part of the lyrics of one of the album’s eccentric songs “Teeth” in which the over-the-top; artist sings, “Take a bite of my bad girl meat.”

The costume — which costs a cool $100,000 — is made up of 112 pounds of raw meat that reportedly includes a 32-ounce rib eye steak hat. The creative costume was showcased to prospective buyers Wednesday afternoon by a live model at the Old Homestead Steakhouse located on 9th Avenue in the Meatpacking district of Manhattan.

Continue reading . . .

A Brazilian court ruled this week that McDonald’s must pay a former franchise manager $17,500 because he gained 65 pounds while working there for a dozen years.

The 32-year-old man said he felt forced to sample the food each day to ensure quality standards remained high, because McDonald’s hired “mystery clients” to randomly visit restaurants and report on the food, service and cleanliness.

Continue reading . . .

To celebrate Halloween this year, Chili’s Grill & Bar invites guests to cast their spell and fly into Chili’s to receive a free treat – not trick – for their kids. On Halloween, Sunday, Oct. 31, from 3 p.m. until close, participating Chili’s locations will offer a free Pepper Pal’s kid’s meal for children 12 years and under.

Before heading out under the shadows of the moonlight, stop by Chili’s to give kids healthy treats before their candy sweets. Chili’s now offers four new nutritional side items to the Pepper Pal’s menu including, fresh pineapple, salad with low-fat ranch dressing, steamed broccoli and celery sticks served with low-fat ranch. Each Pepper Pal’s Kids Menu comes with a choice of entree, side item and a drink.

“We know that our guests – little kids and big kids alike – love Halloween,” said Krista Gibson, senior vice president, brand strategy for Chili’s Grill & Bar. “Dining with us before going out for trick-or-treating is a win for all – kids will have an opportunity to fuel up for the big night out and parents will feel good about the money they’ll save!”

To take advantage of the offer, simply click on this link: http://tinyurl.com/2fgt24y to open and print the free kid’s meal coupon. One adult entree must be purchased per table, but there is no limit on the number of kids per guest. While costumes are encouraged, they are not required to receive this special offer.

Chili’s is spreading the word about this ‘hauntingly’ good deal to E-Mail Club members, as well as on Chili’s Facebook and Twitter pages. Follow news about the brand on Facebook at www.facebook.com/chilis, @Chilis on Twitter and on YouTube at www.youtube.com/chilis. For more information, visit www.chilis.com.

Saladworks, the nation’s first and largest fresh-tossed salad franchise concept, proudly announces the addition of two new soups to the franchise’s already extensive menu offering. Creamy Roasted Corn Tomato with Smoked Cheddar and hearty Chicken Pot Pie soups are now available in all Saladworks locations.

Saladworks fans can warm up with Roasted Corn Tomato with Smoked Cheddar – a delicious vegetarian soup of fire roasted corn, tomatoes, poblano chilies, garlic, cheddar cheese, fresh herbs, and a touch of cream.

Chicken Pot Pie, the ultimate “comfort food,” is now a hearty soup you can feel good about eating – chock full of chicken, spaetzle dumplings, and sweet peas in a creamy base.

Saladworks offers over 15 varieties of soups, including Butternut Squash, Cream of Broccoli, Chicken Orzo, and Italian Wedding. The Roasted Corn Tomato with Smoked Cheddar and Chicken Pot Pie soups are delicious additions to the menu, and pair wonderfully with Saladworks’ entrée-sized salads.

“All of Saladworks’ soups are made from our original recipes, passed down from my mother and grandmother. Every soup is crafted to give our customers the best combination of satisfying flavors and tastes, while maintaining proper nutritional balance,” said Saladworks’ Founder/CEO, John Scardapane. “The Roasted Corn Tomato with Smoked Cheddar and Chicken Pot Pie soups are sure to be a hit with our fans’ taste buds and waistlines, at less than 140 calories per serving.”

The Michelin Guide San Francisco, Bay Area & Wine Country 2011 was released this week, marking the fifth edition for the area.  This year’s guide features 519 restaurants, 74 of those are in the Bib Gourmand category.  The San Francisco area also boasts two of only 91 restaurants in the world receiving three or more stars from the group.

As of September 15, 2010 T.G.I. Friday’s has been offering guests a new allergen supplement menu.  The new menu makes it easier for guests with food allergies to make informed food choices.  The new menu features icons detailing the food groups present in each dish.

T.G.I. Friday’s has also announced an updated restaurant and bar menu in the Denver area.  The new menu features 20 new dishes and drinks for guests with a heavy focus on meal customization options.  The new menu is currently only available in participating Denver locations, and may expand to a national menu in the future.

Wall Street is optimistic on the restaurant front.  Over the past year shares of Chipotle, DineEquity, and BJ’s Restaurants increased by 141%, 89%, and 87% respectively.  The optimism and growth has been driven by three months of positive signs coming from increased traffic in the restaurant industry.

Red Robin Gourmet Burgers has announced it will open a new location in Brookfield on Monday, November 8 at 11 a.m.  The company will celebrate the grand opening of the restaurant with a weeklong fundraiser in conjunction with the National Center for Missing & Exploited Children.  During the week, 50 cents from each gourmet burger sale will be donated to the NCMEC to support child safety programs.

For the fourth consecutive year, McDonald’s is teaming with the Hispanic Scholarship Fund to present the McDonald’s Steps for Success College Workshop.  The event will be held in Los Angeles on November 13 from 9 a.m. to 1 p.m.  The bi-lingual workshop is free and offered to students and their parents.  The application process, financial aid, and the McDonald’s scholarship program will be prominent features of the event.

Buffalo Wild Wings has announced the results of their third quarter ending September 26.  The company announced that overall revenue increased by 14% compared to the same quarter last year.  Company-owned restaurants also saw an uptick in sales to the tune of 13.9%, while system-wide same store sales increased by 2.6%.  The strong quarter left the company with an increase in net earnings of 23.7%.

Kona Grill released the results from the company’s third quarter ending September 30.  Overall, sales at the restaurant grew by 7.1% over the previous year.  However, same store sales showed no change, while comparable non-same store sales increased by 12.8%, resulting in an operating profit margin of 12.8%.  Even with the positive signs, the company reported a net loss of $0.05 per share, which was down from a $0.11 loss per share last year.

Bravo Brio Restaurant Group has announced the completion of their initial public offering of 11.5 million shares of BBRG common stock.  The shares were listed at $14.00 each.  BBRG began trading on the Nasdaq Global Market on October 21.  The total proceeds of the offering after deductions and underwriting expenses was nearly $62.4 million.  BBRG will use the net proceeds to repay debt and other corporate expenses.

NTN Buzztime, Inc. has announced a new restaurant and bar trivia game for Canadian players.  The new game will feature trivia questions in history, politics, sports, entertainment, and geography specific to Canada.  The one-hour game debuted on October 26 and will air each Tuesday, Wednesday, and Thursday at participating locations.

The third of three former employees has agreed to plead guilty to stealing $1.9 million from the company that owns the Outback Steakhouse restaurant chain.

Until February, Mark T. Watson was the treasury department supervisor for OSI Restaurant Partners, the parent company of the Outback chain, plus Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Roy’s Hawaiian Fusion Cuisine.

Continue reading . . .

Famous Dave’s of America, Inc. (Nasdaq:DAVE) today announced revenue and net income of $38.7 million and $1.5 million, respectively, or $0.17 per diluted share, for the third quarter ended October 3, 2010. This compares to revenue and net income of $33.3 million and $1.2 million, respectively, or $0.13 per diluted share for the comparable period in 2009. For the nine months ended October 3, 2010, the Company had revenue and net income of $112.1 million and $6.7 million, respectively, or $0.76 per diluted share. For the 2009 comparable period, the Company had revenue and net income of $103.4 million and $4.9 million, respectively, or $0.54 per diluted share.

“During the third quarter, a number of strong promotions, combined with continued discipline on cost control, produced improved same store sales and financial results,” said Christopher O’Donnell, president and CEO of Famous Dave’s. “We experienced year-over-year improvement in all sales levers of our business, including dine-in, catering and to-go.”

Same store sales for company-owned restaurants open for 24 months or more increased 2.4 percent during the quarter, an improvement over a negative 6.8 percent for the third quarter of 2009. The comparable sales increase included a weighted average price increase of approximately 1.0 percent. Comparable sales for company-owned restaurants decreased 0.3 percent on a year-to-date basis, compared to a decrease of 7.3 percent for the comparable period in 2009.

Franchise royalty revenue for the third quarter of 2010 totaled $4.0 million, a decrease of 5.4 percent from the comparable period in 2009. The decrease in royalty revenue primarily reflects the impact of lost royalties from eight New York and New Jersey locations, seven of which were purchased by the company in March of this year, partially offset by an increase in comparable sales of 0.7 percent. Franchise royalty revenue on a year-to-date basis totaled $12.2 million, with the year over year decrease of 5.0 percent again reflecting the impact of lost royalties from the New York and New Jersey restaurants acquisition, as well as a decrease of approximately 0.8 percent in comparable sales.

Stock-based and Board of Directors Cash Compensation and Common Share Repurchase

Earnings results for the third quarter of 2010 included approximately $325,000 or $0.02 per diluted share, in compensation expense related to the company’s stock-based incentive programs and board of directors’ cash compensation, as compared to approximately $236,000 or $0.02 per diluted share, for the prior year comparable period. The increase in stock-based compensation is primarily due to an increase in the Company’s stock price over the prior year. Stock-based compensation expense and board of directors’ cash compensation expense for the nine months ended October 3, 2010 was approximately $1.0 million or $0.08 per diluted share, compared to approximately $610,000 or $0.04 per diluted share for the prior year comparable period.

During the fiscal 2010 third quarter, the company completed its share buyback authorization, and repurchased 239,040 shares of common stock, at an average price of $8.42 per share, excluding commissions, for a total of approximately $2.0 million. The company repurchased approximately 893,000 shares of common stock during the year-to-date period of 2010 at an average price of $7.76 per share, excluding commissions, for a total of $6.9 million.

Marketing and Development

Development and marketing highlights during the quarter included a successful “limited time offer” of “Wing Wars” – an offering of both bone-in and boneless wings featuring two new hot sauces – Pineapple Rage™ and Wilbur’s Revenge™. Also during the quarter, we had a second successful “Dave’s Day” which included increased participation from our franchise system. The current limited time offering, “Ribzilla,” consists of a beef short rib prepared as an entree or sandwich and also features a bleu cheese wedge salad and cherry cobbler. Included in this offering is a special beer pairing with Samuel Adams^® Seasonals. 

“In early August, we resumed our company-owned growth with the Bel Air restaurant opening,” O’Donnell said. ”This was a very successful opening where we achieved the highest opening week of sales in our history and further expanded our footprint on the East Coast.” 

In addition, during the third quarter, Famous Dave’s opened one new franchise-operated restaurant in San Jose, CA. Famous Dave’s ended the quarter with 179 restaurants, including 53 company-owned restaurants and 126 franchise-operated restaurants, located in 36 states. Subsequent to the quarter end, the company opened a franchise-operated restaurant in Peoria, IL to bring the total current count of restaurants to 180.

Outlook

The company has opened one company-owned location and five franchise-operated locations to date and anticipates opening approximately three to four additional franchise-operated restaurants during the fourth quarter.  

Conference Call

The company will host a conference call tomorrow, October 28, 2010, at 10:00 a.m. Central Time to discuss its third quarter financial results. There will be a live webcast of the discussion through the Investor Relations section of Famous Dave’s web site at www.famousdaves.com.

About Famous Dave’s

Famous Dave’s of America, Inc. develops, owns, operates and franchises barbeque restaurants. As of today, the company owns 53 locations and franchises 127 additional units in 36 states. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items and sandwiches, and unique desserts.

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
	Three Months Ended		Nine Months Ended
	October 3,  2010	September 27,  2009	October 3,  2010	September 27,  2009
Revenue:
Restaurant sales, net	$ 34,313	$ 28,763	$   98,919	$ 89,600
Franchise royalty revenue	4,012	4,242	12,208	12,851
Franchise fee revenue	145	80	235	155
Licensing and other revenue	233	220	689	811
Total revenue	38,703	33,305	112,051	103,417
Costs and expenses:
Food and beverage costs	10,177	8,762	29,121	27,046
Labor and benefits costs	10,944	9,174	31,217	27,857
Operating expenses	9,475	7,760	26,719	23,492
Depreciation and amortization	1,401	1,253	4,070	3,834
General and administrative expenses	4,027	3,701	11,753	11,976
Asset impairment and estimated lease termination and other closing costs	4	446	(68)	119
Pre-opening expenses	219	–	300	–
Gain on acquisition, net of acquisition costs	–	–	(2,036)	–
Net loss on disposal of property	12	7	20	13
Total costs and expenses	36,259	31,103	101,096	94,337
Income from operations	2,444	2,202	10,955	9,080
Other expense:
Loss on early extinguishment of debt	–	(40)	–	(489)
Interest expense	(238)	(277)	(800)	(1,177)
Interest income	19	26	78	93
Other (expense) income, net	(8)	7	(12)	(1)
Total other expense	(227)	(284)		(1,574)
Income before income taxes	2,217	1,918	10,221	7,506
Income tax expense	(759)	(679)	(3,520)	(2,579)
Net income	$ 1,458	$ 1,239	$ 6,701	$   4,927
Basic net income per common share	$ 0.17	$     0.14	$  0.77	$   0.54
Diluted net income per common share	$ 0.17	$     0.13	$  0.76	$   0.54
Weighted average common shares outstanding – basic	8,498,000	9,124,000	8,715,000	9,104,000
Weighted average common shares outstanding – diluted	8,631,000	9,254,000	8,870,000	9,184,000

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)
	Three Months Ended		Nine Months Ended
	October 3, 2010	September 27, 2009	October 3, 2010	September 27, 2009
Food and beverage costs (1)	29.7%	30.5%	29.4%	30.2%
Labor and benefits (1)	31.9%	31.9%	31.6%	31.1%
Operating expenses (1)	27.6%	27.0%	27.0%	26.2%
Depreciation & amortization (restaurant level) (1)	3.7%	3.9%	3.7%	3.8%
Depreciation & amortization (corporate level) (2)	0.4%	0.4%	0.4%	0.4%
General and administrative (2)	10.4%	11.1%	10.5%	11.6%
Asset impairment and estimated lease termination and other closing costs (1)	–	1.6%	(0.1%)	0.1%
Pre-opening expenses and net loss on disposal of property (1)	0.6%	–	0.3%	–
Gain on acquisition, net of acquisition costs(1)	–	–	(2.1%)	–
Total costs and expenses (2)	93.7%	93.4%	90.2%	91.2%
Income from operations (2)	6.3%	6.6%	9.8%	8.8%
(1) As a percentage of restaurant sales, net
(2) As a percentage of total revenue

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS  (in thousands) (unaudited)
	October 3, 2010	January 3, 2010
ASSETS
Cash and cash equivalents	$ 1,712	$ 2,996
Other current assets	9,495	9,486
Property, equipment and leasehold improvements, net	61,851	54,818
Other assets	3,387	1,081
Total assets	$ 76,445	$ 68,381
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$ 12,498	$ 12,464
Line of credit	13,600	13,500
Other long-term obligations	16,462	9,423
Shareholders’ equity	33,885	32,994
Total liabilities and shareholders’ equity	$ 76,445	$ 68,381

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	Nine Months Ended
	October 3, 2010	September 27, 2009
Cash flows provided by operating activities	$ 8,986	$ 11,684
Cash flows used for investing activities	(10,250)	(1,039)
Cash flows used for financing activities	(20)	(10,703)
Decrease in cash and cash equivalents	$ (1,284)	$ (58)

SUPPLEMENTAL SALES INFORMATION (unaudited)
	Three Months Ended		Nine Months Ended
	October 3, 2010	September 27, 2009	October 3, 2010	September 27, 2009
Restaurant Sales (in thousands)
Company-Owned	$ 34,313	$ 28,763	$ 98,919	$ 89,600
Franchised-Operated	$ 85,968	$   90,138	$ 261,245	$ 270,993
Total number of restaurants:
Company-Owned	53	46	53	46
Franchise-Operated	126	131	126	131
Total	179	177	179	177
Total weighted average weekly net sales (AWS):
Company-Owned	$ 50,106	$ 47,706	$ 49,927	$ 49,427
Franchise-Operated	$ 53,367	$ 53,524	$ 54,057	$ 54,870
AWS 2005 and Post 2005: (1)
Company-Owned	$ 57,343	$ 55,340	$ 56,946	$ 58,909
Franchise-Operated	$ 56,740	$ 57,683	$ 58,002	$ 60,201
AWS Pre 2005: (1)
Company-Owned	$ 45,791	$ 45,011	$ 46,183	$ 46,112
Franchise-Operated	$ 47,567	$ 47,472	$ 47,470	$ 47,326
Operating Weeks:
Company-Owned	680	598	1,969	1,807
Franchise-Operated	1,607	1,684	4,826	4,934
Comparable net sales (24 month):
Company-Owned %	2.4%	(6.8%)	(0.3%)	(7.3%)
Franchise-Operated %	0.7%	(9.5%)	(0.8%)	(8.8%)
Total number of comparable restaurants:
Company-Owned	42	38	41	38
Franchise-Operated	102	100	95	92
(1) Provides further delineation of AWS for restaurants opened during the pre-fiscal 2005, and restaurants opened during the post-fiscal 2005, timeframes.

Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of our restaurant openings and the timing or success of our expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the company’s actual results to differ materially from expected results. Although Famous Dave’s of America, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to differ materially from Famous Dave’s expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the company’s SEC reports.

Restaurateurs Hugh H. Connerty (founding principal of Outback Steakhouse and Carrabba’s Italian Grill) and Johnny Carrabba recently stopped by Antico Pizza Napoletana to congratulate owner Giovanni Di Palma and his son Johnny for recent accolades.

Johnny Carrabba proclaimed, “This is the best pizza and crust I’ve ever tasted…even better than my mother’s!”

Known the city over for its unrivaled quality, flavor and ambiance, Antico Pizza Napoletana is very good, indeed. Recognized across the Southeast for its unique Italian offerings, the Atlanta favorite is quickly becoming known globally. In fact, Italy’s own Festa Della Pizza, held annually in the birthplace of pizza near Naples, has recognized Antico for its award-winning take on tradition.

A worldwide, two-day festival, the Festa Della Pizza in Salerno, Italy has chosen Antico to receive its Top in Class award for the United States. The organization’s Top in Class honor is bestowed among certified entities the world over that best represent the Italian region’s flavors, colors and traditions.  Furthermore, Antico has obtained the European Commission’s Traditional Specialties Guaranteed certification for Neopolitan pizza, given by the Instituto Mediterraneo di Certificazione. IMCERT is the institution for the certification of agricultural and food quality, and it awards the STG certification to restaurants committed to preparing only the best and most quintessential Italian Neopolitan pizza. As a certified pizzeria, Antico uses authentic ingredients, including Molino San Felice, one of the designated Italian flours for STG certification.

Among its many accomplishments, Antico is thrilled to be recognized by such a prestigious organization.

“To even be considered to receive this award – the highest international pizza certification for the United States – from Italy is a tremendous honor for me and my family. This recognition for pizza in Naples is like winning an Oscar in Hollywood.” said owner Giovanni Di Palma. And ever the innovator, Di Palma invited the city to celebrate with him.

On Friday, September 10, Antico broadcasted the real-time ceremony, streamed live from Salerno, Italy, at its outdoor event – and into the Antico kitchen. Echoing the charm of the Old World, Antico transformed its outside streets into a veritable Italian piazza for a refreshing al fresco experience. At the future site of Antico’s outdoor Piazza San Giovanni, eatery enthusiasts enjoyed a taste of Antico’s awardwinning pizza and several other in-town favorites. Partners Westside Creamery, King of Pops and Perrine’s Wine Shop offered a sampling of the city’s best refreshments at a European-style celebration at Piazza San Giovanni, across from Antico.

At a press conference, streamed live from the Festa Della Pizza, Antico was named the best STGcertified pizza in the United States – or Top in Class for the country. As the crowd erupted in cheers, revelers were showered with champagne by a celebratory di Palma. “So from no on,” the owner said, “when you eat pizza anywhere else, you’re allowed to pay with fake money. And you can tell them I said so.”

With a healthy appetite for tradition – and a deep respect for pizza crafters everywhere, Di Palma looks forward to leading Antico toward even more growth.

Located in Atlanta, GA, Antico Pizza Napoletana opened its doors in October 2009 and has quickly gained a passionate following the city over as a refreshing addition to the thriving west Midtown area.  The brainchild of Italian visionary Giovanni Di Palma, Antico offers a unique experience. The restaurant is heralded by regulars, newbies and members of the media alike as unrivaled. Inspired by the flavors of his grandparent’s village near Naples, Italy, Di Palma combines his rich heritage and New York City know-how to realize his vision in Atlanta.

Zagat has released the results of the 2011 America’s Top Restaurants guide.  The guide includes diner ratings and reviews from more than 1,500 of the top restaurants around the country.  More than 150,000 avid diners provided the results for the survey.

The guide lists the top restaurants, but also numerous bits of information on dining habits, spending trends, and a number of other topics foodies will find interesting. 

The guide found that with so many restaurants offering free Wi-Fi, more than 60 percent of respondents think restaurants should limit how long guests can linger during high-traffic hours.  The availability of Wi-Fi and smartphones has made texting, tweeting, and web surfing as persistent as talking on the phone at the table, and more than 60 percent of people find it to be just as rude.

The survey also offers a bit of news for restaurant owners, though its news they likely learned throughout the year.  Respondents said they are eating out less often.  The results show that Americans eat out an average of 3.1 times each week, down from 3.3 times each week before the recession hit.  In addition to the decline in visits, respondents said they are more conscious of prices (39%), opting for less expensive restaurants (33%), and cutting back on alcohol and pre- and post- entrée options. 

The guide also found that the average price of a meal rose by 2.2% to $35.57.  The increase in average meal price may be the key to the return of expensive fine-dining restaurant openings.  After spending recent years taking a backseat to casual, affordable restaurants, expensive fine-dining restaurants made a comeback in 2010.  A number of new fine-dining establishments opened during the year reversing a trend that had seen consistent declines in recent years.

• Zagat 2011 America’s Top Restaurants