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Archive for May, 2011

Johnny Rockets Opens 17th Restaurant in New YorkWell-known on the eastern seaboard, residents throughout the state of New York are familiar with Johnny Rockets restaurants. Today, the chain opens its 17th New York state location, in the city of Westchester.

Offering the traditional Johnny Rockets menu, with all-American favorites, including Hamburgers, American Fries and Deluxe Shakes. The menu also features some local favorites such as Caesar, Southwestern or Asian salads. A Black Bean Chipotle Veggie Burger and other regional requests.

According to Johnny Rockets Director of Operations for the Westchester city restaurant, Daniel Weisse, “Johnny Rockets is one of the only “family friendly” restaurants in the area, so we couldn’t be more thrilled with the location and are anxious to open our doors to the community.” As is customary for the chain, advertising in local publications and offering special discounts to the neighboring community has helped create excitement for the grand opening.

The Westchester city restaurant is owned and operated by the Montag Rockets franchise group who also own the Johnny Rockets restaurant, in Mt. Kisco, New York. With over 20 years in the sports, entertainment and restaurant business, the Montag Rockets franchise group is known for recognizing successful ventures and thus, whole-heartedly, “believes in the Johnny Rockets brand and is excited to see its development and growth within the area,” says Weisse.

“New York locals and tourists have enjoyed the traditional all-American fare of Johnny Rockets for many years,” says Jericho Tallman, Public Relations Manager of Johnny Rockets, “at the newest Johnny Rockets restaurant in Westchester, guests can continue to enjoy American classics, but will also have the opportunity to experience some non-traditional fare.” Tallman also added, “We are thrilled about this grand opening, as Johnny Rockets is hoping to continue expansion across the U.S.”

The new Johnny Rockets restaurant will occupy a 3,010 sq. ft. space and employ a staff of 40 locals. The restaurant has a built-in private banquet room ideal for birthday parties, fundraising opportunities and private events. The restaurant is located at 777 White Plains Road, Scarsdale, NY in The Shoppes at Eastchester.

Red Robin Serves up 5 Alarm Chicken SandwichFor a limited time only, Red Robin is serving up summer sizzle with a fiery 5 Alarm Chicken Sandwich and a Summer Strawberry Salad now until Sunday, July 24. Whether guests are looking to crank up the heat with the spicy combination of a grilled chicken breast, spicy Pepper-Jack cheese, jalapeños, tangy salsa and homemade chipotle mayo found inside the 5 Alarm Chicken Sandwich, or savor the sweet flavors of fresh-sliced strawberries, tangy Feta cheese, toasted almonds, crisp romaine lettuce and grilled chicken breast tossed together in a made-fresh-in-house strawberry dressing to create the Summer Strawberry Salad, the new limited time only (LTO) summer items will satisfy a variety of taste preferences.

To support the LTO offerings, Red Robin will launch its latest advertising initiative based on the casual dining chain’s popular and memorable mnemonic, “Red Robin…YUMMM,” from Wednesday, June 1, through Wednesday, June 29. During this time, the 5 Alarm Chicken Sandwich will be sold at an appetizing price of $6.99 and the Strawberry Summer Salad will be available for $8.99.

For guests eager to jump start their 5 Alarm Chicken Sandwich or Summer Strawberry Salad, or satisfy their sweet-tooth, Red Robin also is serving these limited-time sides through Sunday, July 24:

  • Sweet Potato Fries – Served with Sweet & Spicy ketchup, these crispy fries are topped with sea-salt and available for $2.99 for a single order or $5.79 for a double.
  • Apple Pie Bites – Packed with juicy pieces of Fuji, Gala and Granny Smith apples simmered in a sweet filling with a cinnamon cracker crumb crust. Sprinkled with powdered sugar and served alongside a warm caramel dipping sauce. Available for $4.99.

Also, to satisfy thirsty guests during the summer and year-round, Red Robin just introduced its first-ever, separate, 16-page Drinks and Desserts menu for guests to find the perfect complement to any meal. The new Drinks and Desserts menu will be a permanent fixture for each diner’s table and will be updated seasonally to feature a multitude of alcoholic, non-alcoholic and dessert options.

Red Robin Gourmet Burgers to Test Smaller Restaurant PrototypeRed Robin Gourmet Burgers, Inc., a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today announced that it is pursuing a test of a smaller prototype restaurant as a complement to its current 5,600-square-foot casual dining format. The square footage of the smaller prototype restaurant will be between 2,000 and 4,000 square feet and allows for additional flexibility, including a modified menu and service format. Over time, the reduced footprint could enable Red Robin to accelerate development into non-traditional locations that have not been previously available based on space requirements of the current prototype, as well as further leverage its brand as the gourmet burger experts.

In addition to the 10 full-sized restaurants that the Company has previously announced it plans to open in fiscal 2011, the Company expects to have at least one smaller prototype location open before the end of the year. Several locations suitable for the smaller prototype have already been identified, primarily in the Denver area. The Company will evaluate the operating performance and unit level economics of this smaller prototype before deciding on expansion plans.

As disclosed on the May 19th earnings conference call, the Company plans to continue the growth of its casual dining restaurants using the current 5,600-square-foot format. The Company is pleased with the recent performance of its new restaurant opening results, and therefore is in the process of considering the expansion of its fiscal 2012 development plans. The Company plans to provide a fiscal 2012 development update on its second fiscal quarter 2011 earnings conference call on August 11, 2011.

Based on the ongoing review of the Company’s capital allocation strategy, which includes investment in new restaurant development, opportunistic repurchases of the Company’s stock, and the paydown of debt, the Company does not anticipate further reductions, beyond scheduled amortization payments, in the outstanding balance of the Company’s term loan for the remainder of fiscal 2011. Accordingly, the Company expects to record approximately $1.5 million of interest expense per quarter for the balance of fiscal 2011, excluding any interest income recorded on available cash balances.

As of May 15, 2011, the Company held $34.6 million in cash and cash equivalents and had a total outstanding debt balance of $161.1 million, including $150.0 million of borrowings under its $150 million term loan, no borrowings under its $150 million revolving credit facility and $11.1 million outstanding for capital leases. There were $7.0 million of letters of credit issued under its revolving credit facility.

Restaurant Industry Outlook Remains Positive as Restaurant Performance Index Stood Above 100 for Fifth Consecutive MonthBuoyed by positive same-store sales and solid optimism among restaurant operators for continued growth, the outlook for the restaurant industry remained positive in April. 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 100.9 in April, essentially unchanged from a level of 101.0 in March. In addition, April represented the fifth consecutive month in which the RPI stood above 100, which signifies expansion in the index of key industry indicators.

“The restaurant industry continued to build momentum in April, with restaurant operators reporting positive same-store sales and customer traffic levels for the sixth time in the last eight months,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Barring any significant external shocks, restaurant sales and traffic levels will continue to improve in the months ahead.”

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 100.3 in April – up slightly from a March level of 100.2. In addition, the Current Situation Index stood above 100 for the second consecutive month, which signifies expansion in the current situation indicators.

Restaurant operators continued to report net positive same-store sales results in April. Fifty percent of restaurant operators reported a same-store sales gain between April 2010 and April 2011, down slightly from 52 percent of operators who reported higher same-store sales in March. In comparison, 31 percent of operators reported a same-store sales decline in April, matching the proportion of operators who reported lower sales in March.

Restaurant operators also reported a net increase in customer traffic in April, although levels were somewhat softer than the March results. Thirty-eight percent of restaurant operators reported an increase in customer traffic between April 2010 and April 2011, down from 45 percent of operators who reported higher traffic in March. In comparison, 35 percent of operators reported a traffic decline in April, up from 32 percent in March.

Capital spending activity among restaurant operators trended upward in recent months. Forty-eight percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, the highest level in nearly three years.

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 101.5 in April – down slightly from a level of 101.7 in March. Despite the decline, the Expectations Index stood above the 100 level for the ninth consecutive month, which signifies expansion in the forward-looking indicators.

Restaurant operators remain bullish about sales growth in the months ahead. Forty-seven percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), down slightly from 50 percent who reported similarly last month. In comparison, just 13 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, matching the proportion who reported similarly last month.

While restaurant operators’ sales outlook remains positive, they aren’t quite as optimistic about the direction of the overall economy in the coming months. Thirty-three percent of restaurant operators said they expect economic conditions to improve in six months, up slightly from 32 percent who reported similarly last month. In comparison, 17 percent of operators said they expect economic conditions to worsen in the next six months, compared to 19 percent who reported similarly last month.

Restaurant operators reported a slight dropoff in plans for capital spending in the months ahead. Forty-nine percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down slightly from 53 percent who reported similarly last month.

For the seventh consecutive month, restaurant operators reported a positive outlook for staffing levels in the coming months. Twenty-four percent of restaurant operators plan to increase staffing levels in six months (compared to the same period in the previous year), while just 11 percent said they expect to reduce staffing levels in six 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 and a video summary are 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.

Dunkin' Donuts Introduces Frozen Hot ChocolateDunkin’ Donuts continues to prove that cool is hotter than ever with the introduction of Frozen Hot Chocolate, the newest addition to the brand’s lineup of frozen beverages. Just in time for summer, Dunkin’ Donuts’ Frozen Hot Chocolate delivers the rich, comforting taste of Dunkin’ Donuts’ classic hot chocolate in an icy cold beverage. Frozen Hot Chocolate is available for a limited time at participating Dunkin’ Donuts restaurants nationwide.

Dunkin’ Donuts continues to establish itself as a beverage destination with a wide-variety of delicious frozen beverages to keep people energized and running throughout the day. Dunkin’ Donuts’ popular line of Coolatta® frozen slush drinks make it fun and easy to stay cool no matter how high the temperature rises. In addition to favorite Coolatta flavors such as Coffee, Strawberry, Vanilla Bean, Blue Raspberry and Tropicana® Orange, guests can create their own unique varieties by mixing existing Coolatta flavors into cool and creative combinations.

“Over the past few years, we’ve seen a significant increase in the popularity of our frozen beverages, not just in warm-weather months but all throughout the year,” said John Costello, Chief Global Marketing & Innovation Officer at Dunkin’ Brands. “Our frozen beverages provide our guests with the refreshment and the extra boost they need to get through their busy days, and we are excited to offer our new Frozen Hot Chocolate as yet another delicious cool choice to keep people running.”

Restaurant Coupons and Where to Find ThemPeople are always looking for great ways to save money, and in this economy every penny that can be saved really makes a huge difference. Dining out all the time can get to be expensive. That is where restaurant coupons come into play. People love to eat, and they enjoy dining out at restaurants. It gives them a break from their busy schedule, and restaurants are a great place to socialize with friends and families. Dining coupons are an excellent way to save some hard earned money.

Finding restaurant discounts is simple, as long as you know where to look. Restaurants want your business and many of them will often tempt new and returning patrons with free food coupons. You can start your search for restaurant coupons by visiting the restaurant’s website. This is often the first place they will list coupons and discounts. These could be anything from printable restaurant coupons to free food coupons. All you need to do is print them and present them to start saving.

If the restaurant’s website does not list coupons, they might offer them through one of the many social networks like Facebook and Twitter. Most restaurants will have a link on their website that will take you directly to their social media presence. Once you are there, you can start searching for the best restaurant deals and dining coupons. Follow the restaurant on Twitter, or “like” them on Facebook and you could get updates, news and restaurant coupons delivered right to your mobile phone.

Some restaurants will provide their loyal patrons with printable restaurant coupons via email. All you need is a valid email address to start saving. Subscribe to their email list and start reaping the rewards of the restaurant’s email marketing campaign. This can be a great way to decide which restaurant to try next. Sign up to several of your favorite restaurant’s email lists and just wait for them to start sending you the savings. Which ever restaurant sends you the best deal, could be your choice for breakfast, lunch or dinner.

Not everyone has the time to dine in at a restaurant. With all of the busy schedules, sometimes the only way to grab a bite to eat is by using the drive thru window. Fast food restaurants know this and almost all of them offer fast food coupons. You can find them many of the same ways that you would find coupons for dine in restaurants. Pick your favorite and most visited fast food restaurant and go to their website. If you can’t find any printable fast food coupons there, check their Facebook and Twitter pages. Join their email list and let them send the fast food coupons directly to your email account.

American consumers are saving millions of dollars each year by using restaurant coupons. Join them and claim your piece of the pie, at a discount of course.

Restaurant News Bites: Popeyes, Bojangles', Pizza PatronIf you need new ideas on increasing customer traffic, making loyalty programs pay off or improving upselling, try tapping your staff for new information rather than hiring outside consultants. Engaging your employees gathers information from the people who are actually interacting with customers. This encourages organic idea creation that improves your business in surprising ways.

Popeyes Louisiana Kitchen is bringing back their famous Wicked Chicken for a limited time. The Cajun spices mixed into the batter gives the chicken strips a hot kick. Each meal comes with 5 strips, a fresh buttermilk biscuit, ranch dressing and a mini bottle of Tabasco. The special chicken will only be available for a limited time in June.

Real Mex Restaurants is on the search for a new President and CEO after Carlos Angulo gave his resignation. Rick Dutkiewicz is acting as the interim President as the company commits to a nationals search to find the best representative for the position. The chain is the largest casual full service Mexican dining brand in the United States.

Boddie-Noell Enterprises, a franchisee in the Hardee’s brand, has received the coveted 2011 Wilber Hardee Founder’s Award. This award was given to the company for exemplifying the vision of the brand and making a difference in the community. This franchisee company operates 335 locations and is the largest single operator of the Hardee’s chain.

Bojangles’, the national fried chicken fast food chain, awarded its top unit directors and area managers at the annual leadership conference. Jayesh Patel, a unit director in Buford, GA, won a 5 day cruise and a $800 prize as the top Unit Director. Janet Lynch won the Area Director award with the same rewards for her work in the Albemarle area of North Carolina.

Carino’s Italian has a location in tornado damaged Joplin, Missouri and they have announced their plans to donate free food and drinks to all disaster relief workers. Deliveries will be made to clean up sites and to emergency family shelters. Many staff members and regular customers of the Carino’s location were affected by the tornadoes.

Oscar Mayer’s Wienermobile is turning 75. To celebrate the company will be unveiling the new Wienermobile Food Truck. Customers who visit the new Food Truck in Times Square, New York City will receive a free all-beef frank with their choice of toppings. The truck will be traveling to select events throughout the summer and will donate $50,000 to the Feeding America charity.

Another BRIO Tuscan Grille location has opened in San Antonio, making this the 88th location for the BRIO chain. This restaurant combines authentic Tuscan cuisine with a casual but upscale environment. The BRIO brand is owned and operated by the BRAVO | BRIO Restaurant Group that also produces the BRAVO! Cucina Italiana brand.

The newest Pizza Patron location opened last week, bringing the new brand’s total up to 12 restaurants. The Pizza Patron brand uses special Lincoln Quick Cook ovens to produce fresh pizza in a few minutes, making this one of the first Quick Service Pizza chains. Customers won’t have to wait 10-20 minutes or settle for pizza that has sat under a heat lamp for hours.

Restaurant News Bites: OpenTable, California Pizza Kitchen, Tim HortonsOpenTable has released a new list of the top 50 restaurants in America for outdoor dining. The winners of the Diner’s Choice Awards for Best Outdoor Dining were chosen from thousands of user ratings collected on the OpenTable service website. Consumers enjoy outdoor dining during the summer due to the beautiful weather. This award list will help diners in all states choose a new outdoor dining spot.

California Pizza Kitchen is being purchased by Golden Gate Capital for $18.50 per share. This totals about $470 million dollars. The Board of Directors undertook a serious plan for raising share prices earlier this year and the sale of the company was deemed to be the best route. Golden Gate Capitol is a large investor in the restaurant industry and will provide the company with enough funding for revitalization and new development.

The Apple iPad is being used in unique ways by a variety of restaurants and many establishments are seeing an increase in sales as a result. Bones Restaurant is using the touch screen computer for expansive and easily updated wine lists. The Atlanta location says that they’ve seen a 10-15% increase in wine sales since implementing the devices.

Zagat has released the newest survey results for the Westchester and Hudson Valley area. Over 900 restaurants were critiqued by over 5,000 diners over the last year. Sushi Nanase scored nearly perfect with 29 out of 30 points. X20 Xaviars on the Hudson was named the Most Popular, and Italian proved to be the most popular cuisine in the area.

Tim Hortons, and the Board of Directors of the company, are actively searching for a new CEO. The former CEO and President Paul House has chosen to stay on until a replacement can be found. The Board of Directors is searching within the company extensively but is also conducting a number of external searches for qualified individuals.

National Doughnut Day, on June 3rd, is being celebrated by Krispy Kreme with a free doughnut for each customer. Each visitor to a participating Krispy Kreme location will receive one donut of any variety for free. No purchase is necessary, so even if you’re not sure if you like donuts from Krispy Kreme you can take advantage of the offer to find out.

Outback Steakhouse added a new special promotion to their tasty menu recently with the introduction of the Special Sirloin and Lobster Tail entree. A grilled tail, a 8 oz sirloin steak and a loaded baked potato come with the deal. The Mediterranean Chicken Flatbread  appetizer is also returning for a limited time with the Carrot Cake dessert.

Burger King’s latest ad campaign ignited backlash from the United States Postal Service. The ad shows postal carriers delivering mail late due to the French toast sticks and Double Crossain’wich sandwich on the BK breakfast menu. The USPS wanted Americans to know that this wouldn’t happen in reality, and Burger King has pulled the ads and made an apology.

Tropical Smoothie Cafe will be donating a part of the profits made on all Sunrise Sunset smoothies sold until June 26th. The donations will go to Camp Sunshine, a camp for children with life-threatening diseases and their families located in Maine. On June 17, or National Flip Flop Day, many locations will hold additional fund raising events and guests can win free smoothies or other gifts.

To celebrate the release of the new “Pokemon: Black/White” game, McDonald’s newest Happy Meal toys will be Pokemon themed. Eight exclusive figurines will include characters like Pikachu, Zorua, and Snivy. Each figurine will come with a special trading card for the Pokemon trading card game. These new toys will be featured from June 17 through July 7.

Burger King goes for new look, menu

Burger King’s cartoonish King mascot will no longer be popping up everywhere. Forget about the steady stream of $1 value menu promotions.

Miami’s signature burger chain is getting a dramatic makeover. A new look is in store for advertising, the menu and even the restaurants themselves. Changes are slowly showing up at select locations, although the dramatic chain-wide makeover will take time.

Though the company’s signature Whopper sandwich will remain the mainstay, the new menu will add healthier options, including Asian chicken salad and mango smoothies. The circa 1970s earth-tone decor will be replaced with a contemporary red-and-black color scheme.

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Restaurant Veteran Named GM of Z'Tejas in Costa MesaRestaurant veteran Jeffrey Grasso has been named the new general manager of Z’Tejas Southwestern Grill at South Coast Plaza. The Orange resident will assume the helm from long-time GM Travis Miller who was transferred earlier this month to run one of the company’s Arizona locations. As GM, Grasso will be responsible for supervising Z’Tejas’ 75 employees, overseeing day-to-day operations, expanding the restaurant’s catering division, working in concert with Executive Chef Daniel Stevens to coordinate seasonal/special event menus and ensuring that the 250-seat restaurant continues to lives up to its reputation as one of Orange County’s most popular dining destinations.

Grasso can trace his roots in the restaurant business to working on the ground floor at Marie Callender’s as a teenager. His management credentials include stints at Hamburger Hamlet in Los Angeles, Elephant Bar & Restaurant in Santa Barbara, Cafe del Rey in Marina del Rey and, most recently, David Wilhelm’s Orange County restaurant group.

“We are delighted to welcome aboard a true restaurant pro to serve as the new general manager of our flagship Southern California restaurant,” said Steven A Micheletti, CEO and President of Z’Tejas. “Thanks to his proven leadership ability, easy-going manner and keen business acumen, we have no doubt that Z’Tejas will continue to thrive under his guidance.”

“Z’Tejas has earned a sterling reputation for its flavorful and varied menu, dynamic atmosphere and top-notch service so it is with great pleasure that I join this team,” added Grasso. “Together, we look forward to creating memorable dining experiences for our guests that exceed their expectations.”

Z’Tejas Southwestern Grill offers a wide array of fresh, flavorful and innovative menu items inspired by culinary influences from Louisiana, Texas, California and Mexico. The restaurant’s interior features an exhibition kitchen, private dining room, mahogany bar, wrought iron detailing, handcrafted tile work, copper accents, jewel-toned fabric lined booths and flattering amber-colored lighting. Al fresco dining is available on the restaurant’s 85-seat heated patio. Z’Tejas Southwestern Grill is open daily for lunch and dinner; half price appetizers and drink specials are offered during happy hour. Z’Tejas Southwestern Grill is located on the east side of South Coast Plaza (3333 S. Bristol Street, Costa Mesa). For more information, call (714) 979-7469 or visit http://www.ztejas.com.

UFood Restaurant Group to Pursue Middle East ExpansionUFood Restaurant Group Inc. announced today that the company has signed an agreement with London-based World Franchise Associates Ltd. to seek franchisees who will develop the UFood Grill brand in the Middle East.

“We are very excited about the potential for our brand in the Middle East,” said UFood CEO George Naddaff. “We know that people around the world have great enthusiasm for American quick-service restaurants, and we believe that this represents tremendous opportunity for our nutrition-focused concept.”

World Franchise Associates is an international franchise organization which assists franchisors in entering new international markets, as well as helping international franchise buyers acquire the best franchised business brands. World Franchise Associates is registered in London and is a division of World Franchise Holdings.

UFood Grill is committed to offering consumers food that is both delicious and nutritious, with a wide-ranging menu that includes lean burgers, rice bowls, salads, wraps and smoothies. The company currently has eight locations in Boston, Dallas and Cleveland, including three airports (Logan Airport [2 units], Dallas Ft. Worth International Airport, Cleveland Hopkins International Airport), urban areas and Parkland Memorial Hospital in Dallas.

In addition, the company will be opening three units this year on the Aberdeen Proving Ground military base in Maryland, is approved to open two airport units in the Salt Lake City International Airport, and one unit in the Omni Club fitness center in Fort Myers, Florida. The company also recently announced an eight-unit franchise development agreement in Puerto Rico.

New 1 4 Pound Southern Style Chicken Sandwich Debuts at Church's Chicken RestaurantsChurch’s New Southern Style Chicken Sandwich takes center stage today on the QSR chain’s menu in their restaurants across the country.

The New Southern Style Chicken Sandwich is an all white meat 1/4 pound chicken breast filet with a slightly sweet and savory flavor served on a toasted buttered bun with crunchy dill pickle chips. The introductory price of the new sandwich is only $1.99.

Demand by customers moved Church’s Southern Style Chicken Sandwich to the front of the company’s robust new product pipeline with more than a year invested in rigorous testing.

“We’re excited about launching our new quarter pound sandwich. We’re still celebrating the news that Church’s beat Popeyes in a national spicy chicken taste test,” said Mel Deane, Church’s CEO. “Now we have more to celebrate with the launch of our Southern Style Chicken Sandwich, by giving our customers what they have been asking for – a sandwich they can sink their teeth in and feel like they had a meal.”

Church’s winning Spicy Chicken recipe prompted the chain to also introduce and test in a limited number of markets, a Spicy version of the 1/4 pound Southern Style Chicken Sandwich.

“We have been working tirelessly to create a sandwich that meets all the needs of our restaurant guests,” said Kirk Waisner, Church’s Chief Chicken Officer. “While the sandwich seems to be simple, we took the time we needed to perfect every ingredient. The bun is soft, our chicken is moist and our customers asked for not two pickle chips but three.”

The New Southern Style Chicken Sandwich will be supported by an advertising campaign with Church’s well-known characters known as Doug the Chicken Genius and his Manager finding ways to get the new Southern Style Sandwich into the unsuspecting hands of everyday people going about their business.

Also making its debut is Church’s Southern Style Chicken Sandwich Launcher Game — the brand new interactive online game is modeled after the advertising campaign and designed to challenge gamers at every level. Anyone who plays will be rewarded with a coupon to receive a Free Church’s Southern Style Chicken Sandwich with the purchase of a medium drink at participating locations. To play, visit www.churchs.com.

More than 20 Dairy Queen officials, including the president and the granddaughter of the man who started the first franchise 71 years ago, visited Joliet Friday to commemorate the start of the soft-serve ice cream legacy.

In November, the Joliet City Council granted local landmark status to the nondescript, whitewashed building at 501 N. Chicago Street, where cones were first peddled for as little as 5 cents.

On June 22, 1940, Sherb Noble opened a Dairy Queen there and grossed a whopping $4,000 in revenues his first season. He made $88 on his most profitable day at the shop, which sits along the historic Route 66.

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Viktor Prenushi is living the American dream.

Since opening Vetoni’s Italian Restaurant in 1997 in Graham, the Albanian immigrant has delighted locals with his homemade recipes and friendly demeanor.

“I work hard to build a relationship with my customers,” he said. “When they leave their house, I want my restaurant to feel like home.”

The recipes are family favorites and others that have been perfected in the Vetoni’s kitchen, he said.

“We work forever just trying to make things really good,” Prenushi said. “Once it is the best it can be, we put it on the menu.”

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When Edward Lloyd opened a rather modest London coffee shop in 1688, it became known for more than just its delicious hot black liquid. Large numbers of merchants, shipowners and insurance brokers would stop by, not only to relax and socialise but to trade.

The coffee shop quickly developed into the perfect place to obtain marine insurance and its reputation grew to the point where its influence continues to this day. Only now we know it as Lloyd’s of London.

The bond between coffee and work is strong. It has long been the staple drink for employees in offices, leading to rather wired workers but ones with alert brains ready to tackle the tasks of the day. Ever since American chair manufacturer Barcalounger became the first company to allow employees a coffee break in 1902, such a breather has grown to become an integral part of the working day on both sides of the pond.

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Currito creators expanding

Joe and John Lanni are betting that American appetites for burritos are going to get bigger.

The brothers created the Currito chain of restaurants several years ago with two in the Cincinnati area, one in Cleveland and 11 more in major cities across the U.S. At least two new locations in the Cincinnati area are set to open in the next six months, and over several years the Lannis will open numerous new stores in other cities.

Currito takes the concept of the made-to-order “fresh mex” burrito that diners are familiar with from popular chains like Chipotle, and adds flavors and ingredients from international cuisines. In a Currito restaurant, a customer can order a “Bangkok” burrito with Thai ingredients, or a “Mediterranean” burrito with hummus, tomato and feta cheese, among many others.

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What ails Jack in the Box?

The nation’s fifth largest burger chain has upgraded its food, remodeled its stores and trained its employees in the fine art of customer service.

But even though consumers forked over $3 billion for sandwiches, tacos, churros and other food last year, sales are still way below pre-recession levels. Jack in the Box Inc.’s stock remains sluggish and last week the company said its profit in the three months ended April 17 dropped 62% from the same period last year.

Customers are starting to return to its stores, but it’s a trickle, with same-store sales up 0.8% over the second quarter of 2010.

“They need to find a way to differentiate themselves,” said Darren Tristano, restaurant analyst for the research firm Technomic Inc. “If you think of Jack in the Box, I’m not sure what you think of anymore.”

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“Can I have some fries with that?”

Isaac Green of Aquasco spent many a high school basketball game enduring such taunts about his after-school job at McDonald’s. Today, he still is ready to respond to the question, only now as the owner of eight McDonald’s franchises throughout Maryland.

Green, 47, began franchising with the Oak Brook, Ill., fast-food giant in the early 2000s and now employs 450 people at his locations, which pull in $21 million in total annual sales, he said. His eateries include four in Prince George’s County, one at National Naval Medical Center in Bethesda and three in Virginia. His goal is to have 15 stores within the next two years and 30 within the next five.

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Charlie Cassara Opens First Dickey's Barbecue Pit in FishkillCharlie Cassara, a local resident, gears up to open his Dickey’s Barbecue Pit next month, bringing the family-owned and operated business to the Fishkill community.

“I’m very excited to open this Texas-style barbecue restaurant and I think the community will enjoy it immensely,” said Charlie Cassara, an entrepreneur who also works in construction.

This is the first Dickey’s Barbecue Pit for Fishkill.

“After visiting the original location in Texas, I felt it was a great fit for the hard-working, family-oriented community of Fishkill. It’s a community to which I can personally relate,” said Cassara.

Kids eat free every Sunday, encouraging the whole family to enjoy Dickey’s Barbecue Pit’s hickory-smoked signature meats, home-style sides and complimentary ice cream.

“We are so thrilled Charlie will open Dickey’s in the Fishkill community.  Bringing a Texas family-owned barbecue restaurant all the way to upstate New York is a testament to his hard work-ethic,” President of Dickey’s Barbecue Restaurants, Inc. Roland Dickey, Jr. said. “Dickey’s will strive to make a difference in the community with philanthropy and barbecue sauce.”

Dickey’s Barbecue Pit encourages community involvement, while also serving up 9 different hickory-smoked meats that are slow cooked every night at every franchise location.

“We are offering people around the country a chance to become their own boss without the initial financial scare. In turn, new locations are able to employ people who would otherwise still be looking for jobs,” Dickey said.

The preparation prior to opening a Dickey’s franchise is extensive, ensuring that owner/operators are thoroughly prepared to hit the ground running.

“We have so many new owner/operators who are investing with us. With this economy, we are glad people trust us for success and we certainly don’t take that for granted,” Dickey said.

The original Dallas location is still open for business and Dickey’s Barbecue Pit is still owned and operated by the Dickey Family.

There are 147 locations in 33 states.

More information on Dickey’s Barbecue Pit is available at www.dickeys.com.

Franchising information is available at 866-340-6188.

Red Robin Appoints First-Ever Chief Burger OfficerRed Robin Gourmet Burgers and its Chief Executive Officer, Steve Carley, have found their first-ever Chief Burger Officer (CBO) after an intense search for the position that took place in honor of National Hamburger Month in May. Today, Michael Morrison from Spanaway, Wash., was named the winning candidate to hold the honorary CBO title. Morrison’s stand-out application was chosen from more than 7,200 burger-lovers who were vying to fill the inaugural CBO position.

“Being named Red Robin’s first-ever Chief Burger Officer is a huge honor that gives me the platform to further proclaim my love for the restaurant as an official brand ambassador,” said Morrison. “From my first Red Robin experience during a fundraising car wash in high school to my son’s birth in a Red Robin parking lot, I have developed a passion for Red Robin that goes beyond the burgers and reaches to some of my life’s most memorable moments.”

In his role as CBO, Morrison will fly to Denver to visit Red Robin’s headquarters and enjoy the executive perks that come with his new title, including a business lunch with Red Robin CEO Steve Carley and time in the Red Robin kitchen learning the art of the Smiling Burger with Red Robin’s executive chef, Dave Woolley.

“Michael went above and beyond to prove he has what it takes to deserve the title of Red Robin Chief Burger Officer,” said Carley. “Not only is Michael a burger aficionado with a 20-year track record of advocating Red Robin as the burger authority, but his love for Red Robin extends far beyond that of the average gourmet burger fan.”

Throughout the application process, Morrison encouraged friends, family and fellow burger-lovers to vote for him to win via an array of social networking sites, including through his personal Facebook page as well as the Red Robin official Facebook page. The extensive lobbying paid off, and while the CBO appointment was ultimately made by a team of Red Robin executives, Morrison received 6,899 votes, making him a standout candidate with the selection committee.

In addition to the trip to Red Robin’s corporate headquarters, Morrison will also receive the following as the inaugural CBO:

  • His name, photo and new CBO title prominently displayed “in lights” on the NASDAQ stock exchange Marketsite Tower in New York City’s Times Square; this happened this morning, Friday, May 27, at 9:58 a.m. EST
  • An Apple iPad2
  • Red Robin burgers for a year (12, $30 Red Robin gift cards)
  • Red Robin swag, including: a personalized Red Robin chef coat and hat; corporate desk nameplate; Red Robin-branded pad folio and pen; an official “Job Offer Letter”; and other executive perks

Visit www.chiefburgerofficer.com or www.redrobin.com to learn more about the newly appointed Chief Burger Officer or to locate the Red Robin restaurant nearest you.

Carl's Jr. Launches My Coke Rewards CampaignCarl’s Jr. has once again partnered with Coca-Cola to make everyone a winner – not just once, but twice. Following the smashing success of last year’s campaign, there will be some even BIGGER winners this year – including two who will walk away with $5,000 gift cards from a major electronics retailer!

The My Coke Rewards campaign launched this week at participating Carl’s Jr. restaurants. With the purchase of a large fountain drink or large combo, guests will receive a specially marked 42-ounce promotional cup that includes two offers: My Coke Rewards points that can be redeemed for cool stuff online; plus a peel-off coupon offer for a free or discounted item for the guest’s next Carl’s Jr. visit.

During the promotion, which runs through July 19 at Carl’s Jr. (and from July 25 to Sept. 18 at sister-brand Hardee’s), Coca-Cola will award more than 60 million My Coke Rewards points (up from 50 million last year), to be redeemed for a wealth of prizes – including the two grand prizes of $5,000 gift cards. Other prizes will include $100 gift cards and American Airlines travel certificates to anywhere in the U.S., Mexico and Caribbean.

With My Coke Rewards points on every cup, guests can collect points to redeem online at mycokerewards.com. The rewards pool is constantly updated, so keep checking back for the latest offerings.

“Everyone really does win with My Coke Rewards,” said Steve Lemley, senior vice president of marketing at Carl’s Jr. and Hardee’s. “When our guests drink Coca-Cola, they will be rewarded with more than just that great refreshing taste; they’ll be able to score My Coke Rewards points and Carl’s Jr. food and beverage offers. We saw great success with the My Coke Rewards promotion last year and are very excited to start it up again this summer. This is another way for us to say thanks to our guests for coming in and for coming back.”

Launched in 2006 and now with over 16.4 million members, My Coke Rewards is the No. 1 beverage website in the United States. On average, 15,000 rewards are redeemed daily on the site, which is seen by 4.5 million unique visitors every month.

Restaurant News Bites: Poultry, Pork and SaladsThe fifth annual edition of the Leaky Bucket Survey shows that many large restaurant brands are finding new and better ways to retain customers. This helps build profitability in time when rising costs and tight consumer budgets make profiting from food difficult. The survey analyzed the customer loss of 78 companies by surveying over 2000 diners.

Wendy’s is bringing in a new salad just in time for the hot days of summer. The Berry Almond Chicken Salad is topped with fresh blueberries, strawberries and raspberries as well as sliced almonds, grilled chicken and a bed of 11 different greens. The fat-free raspberry vinaigrette dressing finishes it off. The full sized salad offers one full cup of fruit, two servings of vegetables and plenty of protein.

Salad chain Tossed has signed a new franchise agreement that will put five of the company’s restaurants in the Boston area. The chain made the agreement with a new franchisee but the Tossed brand already has strong loyalty in Boston. Tossed is also currently developing in Washington D.C. and working on their first international location in Vancouver, Canada.

Technomic’s recent polling indicates the consumers are eating more poultry now than any other meat. 25% of those chicken eaters said that they’d like to see more chicken based breakfast items. Restaurants interested in growing their breakfast sales should take note. Many consumers prefer chicken due to the lower fat content and low cost.

The USDA has changed its recommendations on the cooking temperature of pork. The new guideline says that a peak temperature of 145 degrees Fahrenheit, followed by at least three minutes of rest without cutting, is enough to kill all bacteria in the meat. This is 15 degrees below the old 160 degree requirement and may produce pinker meat than consumers are used to.

Dickey’s Barbecue Pit is having a record year despite the slow economy. Over 25 percent of its franchisees own more than one restaurant, and many that are still single unit owners are interested in developing a second or third location. Newcomers to a franchise typically struggle to learn the ropes, so multi-unit owners make for a strong company that can expand rapidly without issues.

Dean and Melissa Siracusa are two such multi-unit franchisees that are planning to open two more Dickey’s Barbecue Pit locations in Reno, Nevada. The popularity of their existing locations has prompted them to expand. They say that the high quality of the barbecue and the community atmosphere of the restaurants make them so appealing to diners. Kids also eat for free every Sunday, encouraging family visits.

Smashburger has won an award due to their suitability for shopping center installation. The International Council of Shopping Centers has awarded the franchise brand the 2011 Hot Retailer Award. The Council gives the award to brands that have done the most for driving new traffic into shopping centers around the world. Smashburger’s innovative food and friendly atmosphere make it a great attraction for any type of shopping center.

Baskin-Robbins has been developing new ice cream flavors for over 60 years, and the “Deep Freeze” archives contain hundreds of interesting and unusual combinations. Now the ice cream chain is giving fans a chance to vote their favorite flavors back into regular rotation. Visitors to the Facebook page of the chain can cast their votes for flavors like Lunar Cheesecake, Betel-Nut and Yankee Doodle Strudel.

Cracker Barrel has released their earnings report for the third quarter of 2011. The chain saw a net income of $15.2 million, which is a small rise over the $14.4 million income of last quarter. The chain has also seen slight losses in traffic, but is still seeing increases in check totals and total revenue over the 2010 numbers.

I opened the first Nick’s Pizza & Pub more than 15 years ago in northwest Illinois. We now have two 350-seat restaurants in the Chicago area, each with around$3 million in annual revenue. The restaurant business took a significant hit in 2008, along with the rest of the economy, and both our locations started to feel the squeeze.

We needed to find creative ways to get more people into the restaurant. Rather than using a small management or executive team to generate answers, we turned to our employees — everyone from servers, to bartenders, to cooks. The resulting advice not only pulled us through the downturn, but has us looking to expand to a third restaurant within the next few years. Here’s how it worked.

Continue reading . . .

Bojangles' Honors Top Area and Unit DirectorsDuring Bojangles’ recent leadership conference, several of the company’s heroes – the team members who provide customers with great service and tasty, top-quality chicken, biscuits and fixin’s each day—were recognized for their achievements.    Top awards went to Jayesh Patel, Unit Director of the Year, and Janet Lynch, Area Director of the Year.

Patel, who oversees daily operations of Bojangles’ in Buford, Ga., was awarded a five-day cruise and $800 as Bojangles’ Unit Director of the Year.  Area Director of the Year, Lynch was also awarded a five-day cruise and $800 for her work managing operations of 8 restaurants around the Rockingham, Wadesboro, Laurinburg and Albemarle, N.C., areas. 

“The hard work and dedication of great leaders like Janet, Jayesh and many other valued restaurant team members make Bojangles’ the strong, growing brand it is today,” said Bojangles’ Vice President of Operations Kenny Avery.  “Within the next few weeks we will be opening our 500th location, and we know Bojangles’ couldn’t have reached this milestone without the great people in all our restaurants.”

In addition to systemwide winners for unit and area director of the year, each region within the company also recognized a number of unit directors for outstanding performance.  Patel was named Bojangles’ top unit director in Region One while Cuc Acquino, of the Bojangles’ in Lawrenceville, Ga., was named the region’s Star Performer.  Region Two, comprised of parts of South and North Carolina recognized Unit Director Cynthia Mitchell, of the Bojangles’ in Spencer, N.C., as a Star Performer and named Emily Nichols of the Bojangles’ in Wadesboro, N.C., as the regional Unit Director of the Year.  Region Three, covering Maryland and parts of North Carolina, recognized Star Performer Teresa Foley of Winston-Salem, N.C., and Unit Director of the Year Melissa Lewis of Boone, N.C.

“Having the opportunity to recognize these tremendous members of our organization is one of the best parts of my job,” added Avery, “because these are the people who ensure Bojangles’ customers receive the delicious food and top-notch service they have come to expect when they visit our restaurants.”

AFC Reports Financial Results for First Quarter 2011; Reaffirms Fiscal 2011 GuidanceAFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, today reported results for its fiscal first quarter which ended April 17, 2011. The Company also reaffirmed its fiscal 2011 guidance and provided a business update on its Strategic Plan.

First Quarter 2011 Highlights Compared to First Quarter 2010:

  • Reported net income was $7.2 million, or $0.28 per diluted share, compared to $5.8 million, or $0.23 per diluted share, last year. Adjusted earnings per diluted share were $0.27 compared to $0.23 in 2010. This improvement was primarily due to stronger same-store sales and lower interest expense. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • Global system-wide sales increased 6.9 percent compared to a 2.1 percent increase last year.
  • Global same-store sales increased 3.9 percent compared to a 0.3 percent decrease last year. Domestic same-store sales increased 3.9 percent compared to a 0.4 percent decrease in 2010. According to independent data, in the first quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 12th consecutive quarter and the QSR category for the 4th consecutive quarter. International same-store sales increased 4.1 percent compared to a 1.2 percent increase last year.
  • The Popeyes system opened 32 restaurants and permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings last year.
  • Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease in Operating EBITDA as a percent of total revenue was primarily due to investments in general and administrative expenses. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • The Company’s free cash flow was $6.9 million, which included $0.5 million of other income, compared to $6.3 million in 2010, which included $0.1 million of other income. The Company used $6.5 million of cash to repurchase 438,288 shares of common stock under the Company’s current Share Repurchase Program. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “We delivered another strong quarter of positive results operationally and financially. This growth was primarily driven by global top-line sales momentum from both same-store sales and new unit growth, as we continue to focus on our strategic roadmap. Our restaurants are managing in a tough commodity environment by keeping sales strong, selectively raising prices, and tightly controlling labor. We remain on track to deliver our 2011 goals.”

Strategic Plan Update

The Company’s Strategic Plan is built on the foundation of the Four Pillars below.

1. Build the Popeyes Brand

  • In March, Popeyes promoted its signature Butterfly Shrimp Tackle Box featuring 8-pieces of Butterfly Shrimp with Cajun fries and a buttermilk biscuit for only $4.99. This promotion was supported with national media advertising.
  • On March 23, the Popeyes system offered its customer appreciation “Pay Day” promotion for the third consecutive year. This one-day event featured 8-pieces of Popeyes famous Bonafide chicken for only $4.99.
  • In May, to continue the celebration of Popeyes spicy and mild bone-in fried chicken beating KFC’s Original Recipe bone-in fried chicken in a national taste test, Popeyes launched a Buy One, Get One free Bonafide chicken promotion. This Limited Time Offer (“LTO”) featured a free 2-piece meal with the purchase of a 3-piece meal at regular menu price.
  • Starting May 30, Popeyes will promote Wicked Chicken, one of its most successful LTOs. Supported with national media, this promotion will feature Wicked Chicken, Cajun fries, a buttermilk biscuit, ranch dipping sauce and a mini bottle of Tabasco Pepper Sauce for only $3.99.
  • International franchisees also continue to successfully leverage marketing strategies of innovation and value, such as “Pay Day”, to drive guests into Popeyes restaurants.

2. Run Great Restaurants

  • During the first quarter, Popeyes restaurants continued to experience steady improvements in Guest Experience Monitor (“GEM”) scores with “% Delighted” and “Speed of Service” scores both up approximately two percentage points over year end 2010.
  • Since system-wide adoption of Popeyes Speed of Service initiatives, restaurant average weekly drive-thru times have improved significantly, reducing the time by approximately 30 seconds.
  • Popeyes is also implementing measurement tools around core operating systems across the Company’s international markets. At the end of the first quarter, GEM was in place in approximately one third of the Company’s international restaurants.

3. Strengthen Unit Economics

  • In the first quarter, Popeyes restaurants experienced an approximate 6 percent increase in food costs compared to last year, primarily the result of higher commodity costs. On a full year basis, the Company now expects food costs to increase by 4-5 percent which equates to approximately 150 basis points on restaurant operating profit margins. As previously indicated, management expects these costs to be partially offset by top-line sales growth, additional supply chain cost savings, selective menu pricing and in-restaurant cost controls.
  • The Company is also focusing on restaurant profitability in its international markets, where food costs are typically higher. Some of the activities include localized product sourcing, regional volume leverage and stronger strategic supplier partnerships. These cost-reducing activities are being implemented to make Popeyes’ restaurant cost structure more competitive around the globe.

4. Ramp Up New Unit Growth

  • The Company’s global development pipeline for new unit openings continues to strengthen, with both a greater number of projects underway and a more balanced schedule of expected openings throughout the year.
  • Internationally, the Company is now applying the same successful strategic discipline and approach evidenced in the brand’s domestic business. Management expects this will lead to a deliberate and sustainable long-term international growth plan.

First Quarter 2011 Financial Performance Compared to First Quarter 2010

Global system-wide sales increased by 6.9 percent. System-wide sales were comprised of $575.4 million in franchise restaurant sales and $17.6 million in Company-operated restaurant sales.

Global same-store sales increased 3.9 percent compared to a 0.3 percent decrease in 2010. Total domestic same-store sales increased 3.9 percent compared to a 0.4 percent decrease last year. According to independent data, in the first quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 12th consecutive quarter and the QSR category for the 4th consecutive quarter.

International same-store sales increased 4.1 percent and represented the 5th consecutive quarter of positive same-store sales. This increase was primarily driven by strong same-store sales in Turkey, Latin America and Canada partially offset by Korea and U.S. military bases abroad.

Total revenues were $46.8 million, compared to $43.8 million last year. This increase was primarily attributable to positive same-store sales and sales from new restaurants opened in 2010.

Company-operated restaurant operating profit (“ROP”) was $3.4 million, or 19.3 percent of sales, compared to $3.2 million, or 19.9 percent of sales, last year. The $0.2 million increase in ROP was primarily due an increase in same store sales of 6.4 percent partially offset by higher food costs as a result of increased commodity costs. Company-operated Restaurant Operating Profit is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

General and administrative expenses were $18.5 million, or 3.1 percent of system-wide sales, compared to $16.8 million, or 3.0 percent of system-wide sales, last year. This increase was primarily attributable to selective investments to support global new restaurant development.

Other income was $0.5 million, primarily due to a net gain on the sale of two real estate properties.

Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease in Operating EBITDA as a percentage of total revenue was primarily due to investments in general and administrative expenses, partially offset by revenue from stronger same-store sales. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $12.5 million, compared to operating profit of $12.2 million last year.

Interest expense, net was $1.1 million, a $1.7 million decrease from 2010. This decrease was primarily due to lower average interest rates under the Company’s new 2010 credit facility, and lower amortization for bank fees and swap settlement charges recognized in first quarter 2010.

Income tax expense was $4.2 million, yielding an effective tax rate of 36.8 percent, compared to an effective tax rate of 38.3 percent in the prior year. The effective rates differ from statutory rates due to tax credits.

Reported net income was $7.2 million, or $0.28 per diluted share, compared to $5.8 million, or $0.23 per diluted share, in 2010. Adjusted earnings per diluted share were $0.27 compared to $0.23 last year. This improvement was primarily due to stronger same-store sales and a decrease in interest expense, net. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Free cash flow was $6.9 million, which included $0.5 million of other income, compared to $6.3 million in 2010, which included $0.1 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During the first quarter, the Company repurchased 438,288 shares of its common stock for approximately $6.5 million.

During fiscal year 2011 through May 25, 2011, AFC has repurchased 1,085,036 shares of common stock for approximately $16.2 million. These purchases were made in accordance with the Company’s previous stock repurchase guidance for 2011 of $20-$25 million. As of May 15, 2011, approximately 24.8 million shares of the Company’s common stock were outstanding.

The Popeyes system opened 32 restaurants in the first quarter, which included 11 domestic and 21 international restaurants, compared to 17 openings last year. The Company permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings in the first quarter of 2010. The 14 closures in 2011 included 6 domestic and 8 international restaurants.

On a system-wide basis, Popeyes had 1,997 restaurants operating at the end of the first quarter, compared to 1,944 at the end of the first quarter 2010. Total unit count was comprised of 1,587 domestic restaurants and 410 international restaurants in 25 foreign countries and three territories. Of this total, 1,959 were franchised restaurants and 38 were Company-operated restaurants.

Fiscal 2011 Guidance

The Company reaffirms its expectation that Popeyes global same-store sales growth will be in the range of positive 1.0 to 3.0 percent. This guidance reflects stronger same-store sales in the first half of the year and softer in the second half, as Popeyes restaurants roll over strong same-store sales from the third and fourth quarters of 2010.

Global new openings are still expected to be in the range of 120-140 restaurants. As previously indicated, international new unit openings are expected to remain on pace with 2010 growth of approximately 60 restaurants.

Consistent with previous guidance, the Company projects system-wide unit closings will be in the range of 60-80 restaurants, resulting in 40-80 net openings as compared to 39 net openings in 2010.

The Company continues to expect general and administrative expenses will be in the range of $60-$62 million, at a rate of 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry. As previously disclosed, this expense includes $1.0 million for a planned corporate office relocation. Absent this unusual item, general and administrative expenses as a percent of system-wide sales would be 3.0-3.1 percent.

The Company now expects 2011 reported earnings per diluted share will be in the range of $0.87-$0.91, which includes $0.5 million of other income, net, recognized in the first quarter primarily from the sale of two real estate properties; compared to the previous guidance of $0.86-$0.90. The Company continues to expect adjusted earnings per diluted share will be in the range of $0.91-$0.95, compared to $0.86 in 2010. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.” Full year 2011 adjusted diluted earnings per share excludes approximately $1.5 million for the corporate office relocation ($1.0 million for general and administrative expenses and $0.5 million for depreciation and other expenses).

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of April 17, 2011, Popeyes had 1,997 operating restaurants in the United States, Puerto Rico, Guam, and the Cayman Islands and 25 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.

Real Mex Restaurants Commences Search for Key Subsidiary PresidentReal Mex Restaurants has announced the resignation of the President of Real Mex Foods and has commenced a national search for his replacement.

Mr. Carlos Angulo submitted his resignation to pursue other interests. Rick Dutkiewicz, Interim President and CEO, said, “We wish Carlos Angulo well and appreciate his contributions to Real Mex Foods.”

Real Mex has already commenced the process of opening up a nationwide search to identify a new leader for Real Mex Foods that has significant depth of experiences to lead this diverse manufacturing and distribution organization into the future.

“Real Mex Foods has significant and unique capabilities that can be leveraged in innovative ways not easily replicated by our manufacturing competitors,” said Dutkiewicz. “The effort we are putting forward today to seek out an appropriate leader demonstrates our commitment to our customers and our Real Mex team. We are excited and confident that this opportunity to provide fresh thinking and a renewed level of enthusiasm for this important segment of our business is reflective of our confidence on our vision for the future.”

Real Mex Restaurants is the largest full-service, casual dining Mexican restaurant chain operator in the United States in terms of number of restaurants. The Company operates 178 restaurants of which 149 were located in California and the remainder located in 11 other states, primarily under the trade names El Torito Restaurant, Chevys Fresh Mex and Acapulco Mexican Restaurant Y Cantina.

Souper Salad Announces Franchise Agreement for Pflugerville, TexasSouper Salad, Inc. announced the signing of a franchise agreement with Pflugerville, Texas resident Denise Jordan to open a new Souper Salad restaurant on the North side of Austin in mid June 2011.

The 3,800-square-foot restaurant will feature the brand’s noted variety of fresh cut salads, homemade soups, fresh baked breads and classic Tuna Skroodle salad, all served in a relaxed buffet format. The new Souper Salad will be located in The Shops at Tech Ridge in Austin on IH-35 between Parmer Lane and Howard Lane.

The founder of Tree House Kids Learning Center and real estate investor, Jordan, who has been a resident of the Austin area for the last 25 years, became a fan of Souper Salad with its first Austin restaurant on Anderson Lane. “I love the food. When I saw the opportunity to become a franchisee, I jumped at it. Plus, now I can have fresh baked gingerbread whenever I want it!”

With the North Austin opening scheduled for June, Souper Salad will operate a total of six units in the greater Austin area, including an additional franchise location in Georgetown, Texas. The chain has plans for future expansion in the Texas area.

“We cannot wait to offer Souper Salad to the residents of Pflugerville and North Austin,” said Ward Olgreen, President and CEO of Souper Salad. “The brand’s history in the Texas hill country is one of serving food that’s good for the soul while taking it easy on the pocket book. Denise and her team are ready to continue this tradition and so are we.”

Founded in 1978, Dallas-based Souper Salad, Inc. operates two successful restaurant concepts under the Souper Salad and Grandy’s brands. The company currently operates 147 locations in 17 states, including 74 company-owned stores and 73 franchise-owned stores. Over the past 33 years, Souper Salad has established a reputation across the southwest for fresh salads, handcrafted soups, a variety of bakery items and hot entrée options. Grandy’s has served up fried chicken and home-style meals in a quick service restaurant environment since 1973.

Souper Salad is seeking single and multi-unit franchisees to complement the company’s network of restaurants in the south and southwestern United States. More information on franchise opportunities is available at www.soupersalad.com or by contacting Scott McIntosh, Director of Franchise Development, at 972-761-1771.

Carino's Italian in Joplin Open for Business and Joins Relief EffortsCarino’s Italian in Joplin today announced that it plans to donate food and drink to first responders assisting in the search and rescue efforts and community shelters for families who have been displaced. Carino’s will deliver food and drink to designated areas.

“Our prayers and thoughts go out to all our customers and fans in Joplin. Our restaurant and staff made it through the storm okay,” said Creed Ford III, CEO of Carino’s Italian. “However the loss of life breaks our hearts. We at Carino’s will do all we can to support Joplin through this sad time.”

Many of Carino’s Italian staff and their families in Joplin are directly affected by the fatal storm so the restaurant is also holding family meal times for Carino’s staff and family members twice a day as well as offering financial support to affected employees through the Carino’s Family Fund.

Carino’s Italian in Joplin is located at 137 North Range Line Road. First responders and community shelter representatives may call 417-206-9090 to request food and drink to be delivered.

Pizza Patron Brings 'Quick Service Pizza' to HoustonTuesday, May 17, marked the opening of Pizza Patrón’s newest Quick Service Pizza restaurant, a freestanding concept designed to bring the convenience and value of fast food to the pizza segment. With the addition of this new QSP unit, Pizza Patrón now has 12 locations serving Houston.

Pizza Patrón’s QSP model features a standard QSR drive-thru lane that includes an order menu with a two-way speaker system, and a pick-up window where customers complete the transaction without leaving their car. The store also features the brand’s trademark colorful and Latin-influenced lobby created for its ‘carry-out’ guests.

“Pizza Patrón is the pizza brand to keep your eyes on right now,” said Andrew Gamm, Pizza Patrón’s brand director. “Our innovative new QSP store model combined with our Hispanic brand focus makes us timely and relevant in today’s ultra-competitive marketplace.”

Pizza Patrón worked closely with Lincoln Ovens to develop the new fast-bake technology now standard in every QSP location. The fast-bake system bakes pizzas in just over three minutes, allowing made-to-order pizzas to be delivered hot and fresh to customers that prefer the drive-thru experience.

“This is the fifth store I’ve opened in Houston,” said Rick Sparkman, Pizza Patrón franchisee. “And, I feel this is the best model yet. I will only look for locations that are a good fit for this model for every new store I open or build.”

Sparkman built this location from the ground up, a first for Pizza Patrón’s QSP model.

“Most people are used to waiting 15 to 20 minutes for their pizzas,” said Sparkman. “The beauty of this model is that it has potential to change the industry. Why will people wait when they can get their custom-baked pizza in just over three minutes? It’s a dramatic difference — and a fantastic advantage for Pizza Patrón and our customers.”

Pizza Patrón continues to be a lightning rod for discussion regarding Hispanics in the U.S. The Dallas-based pizza chain recently opened its 100th retail location and plans to continue focusing on expanding its retail footprint in new markets through franchising.

Pizza Patrón, America’s #1 Latin pizza brand, offers traditional pizza, wings and sides in its community based, bicultural stores. Pizza Patrón was founded by restaurateur Antonio Swad in 1986, in Dallas, Texas, and today operates 100 dine-in and carry-out restaurants in seven states with 40 more under development. Pizza Patrón has franchise opportunities available in prime markets throughout the country offering a proven system for hard-working franchisee candidates. In 2007, the brand received international news coverage when it decided to accept Mexican Pesos at all of its locations, gaining over 500,000,000 media impressions worth over $30 million in the U.S. alone. The company’s medium AMIGO PIZZAS start as low as $4 and X-Large LISTA-NOW READY pepperoni pizzas start as low as $6 all day, every day.