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Yum! Brands to Sell Long John Silver's and A&W All-American Restaurants to Key Franchisee LeadersYum! Brands has signed definitive agreements to sell Long John Silver’s, Inc. and A&W Restaurants, Inc. to two separate buyers led by key franchisee leaders. Both sales are subject to customary closing conditions.

“We are pleased to announce that we have identified strategic buyers who are passionate about these two great restaurant brands and committed to their growth potential,” said David C. Novak, Yum! Brands, Inc. Chairman and Chief Executive Officer. “As we continue to sharpen our long-term growth focus on international expansion and improving our US brand positions in KFC, Pizza Hut and Taco Bell, Long John Silver’s and A&W no longer fit our long-term growth strategy.”

The Company does not expect the sales to have a material impact to its ongoing earnings or cash flow. Both transactions are expected to close in the fourth quarter. Goldman, Sachs & Co. acted as exclusive financial advisor to Yum! Brands on the transactions.

Long John Silver’s will be acquired by LJS Partners LLC, led by a consortium of prominent franchisee leaders and other investors.

A&W will be acquired by A Great American Brand LLC, led by a franchisee leader with substantial interests in international A&W restaurants and the National A&W Franchisees Association representing U.S. A&W restaurant operators.

Yum! Brands, Inc., based in Louisville, Ky., is the world’s largest restaurant company in terms of system restaurants with approximately 38,000 restaurants in more than 110 countries and territories. The company is ranked #214 on the Fortune 500 List, with revenues of more than $11 billion in 2010. Four of the company’s restaurant brands – KFC, Pizza Hut, Long John Silver’s and Taco Bell – are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories. A&W Restaurants is the longest running quick-service franchise chain in America. Outside the United States, the Yum! Brands system opened approximately four new restaurants each day of the year, making it a leader in international retail development. The company has consistently been recognized for its reward and recognition culture, diversity leadership, community giving, and consistent shareholder returns.

KFC Restaurants Across the U.S. Serve Up Loss Prevention With DigitalPersona Fingerprint BiometricsREDWOOD CITY, Calif.  (RestaurantNews.com)  DigitalPersona, Inc., a global provider of authentication and endpoint protection solutions, today announced that many KFC restaurants owned by the chain’s franchisees are improving their loss prevention programs with DigitalPersona® fingerprint biometrics. Two such KFC franchisees, West Quality Food Service, Inc. and KBP Foods, are using DigitalPersona U.are.U® Fingerprint Readers, which are now available through the franchise’s central purchasing co-op, in restaurants across the Midwest and Southeast. They added the DigitalPersona biometrics to their existing NCR Advanced Restaurant (formerly Compris) point-of-sale (POS) software in order to eliminate the need for personal identification numbers (PINs) and to hold employees as well as managers more accountable. Both franchisees have seen an immediate reduction in payroll fraud and unauthorized transactions, resulting in improved operations and profits.

Employees at these KFC restaurants previously used PINs at point-of-sale terminals to access time-and-attendance systems, while managers used PINs to authorize discounts, voids and overrides. Unfortunately, employees were able to share PINs to inappropriately clock one another in, boosting labor costs. Similarly, staff could secretly use managers’ PINs to authorize fraudulent transactions, driving up the cost of food. Since integrating DigitalPersona fingerprint biometrics with each store’s POS software, the franchisees have significantly raised individual accountability by tying transactions to the specific employee that performed them.  Biometrics has proven to be a strong deterrent that has eliminated buddy punching and reduced the number of unauthorized transactions.

“When using PINs, it is difficult for a restaurant to quantify the impact of unauthorized transactions,” said Mike Servolini, Director – South Operations at West Quality Food Service. “With the DigitalPersona fingerprint solution, we have been able to track each manager’s and employee’s actions more closely, and have recognized a near-immediate reduction in food costs. This is directly attributed to the elimination of false voids and overrides.”

“Buddy punching is completely gone from our stores now that we’ve switched to DigitalPersona fingerprint biometrics,” said Chris Elwood, Area Coach, Omaha for KBP Foods. “Everyone is required to use their fingerprint to get into our systems, and anyone clocking in early or staying late has to get a manager’s fingerprint for approval. This gives us peace of mind that our labor costs are accurate.”

DigitalPersona U.are.U fingerprint readers have been integrated into more than 90 percent of the biometrically-enabled POS systems in the U.S. and are supported by a variety of commercial POS applications. DigitalPersona fingerprint readers enable restaurants and retailers to transition away from swipe cards and PINs, which can be easily lost, stolen or shared. In contrast, biometrics ties individuals to the actions they perform, providing a powerful deterrent to time-and-attendance and management-override fraud. Fingerprint biometrics also makes it easier for businesses to address the stringent Payment Card Industry (PCI) mandates for strong identity security controls and can improve productivity as well as customer response times by simplifying and speeding up system login.

“Fingerprint biometrics is emerging as the authentication method of choice for quick-serve restaurants,” said Jim Fulton, vice president of marketing at DigitalPersona. “Fingerprint readers are a mature, reliable technology that can be deployed quickly and easily, enabling ROI to begin immediately.  Our fingerprint readers have been known to pay for themselves in as little as four weeks.”

About DigitalPersona

DigitalPersona, Inc. is a global provider of strong authentication and endpoint protection solutions that close the gap between people and security for enterprises, government agencies and commercial embedded-solution developers. The company’s fingerprint biometrics technology helps organizations prevent fraud and increase accountability; it is incorporated into multiple national voting systems, almost all brands of biometrically-enabled point-of-sale (POS) stations, as well as many commercial applications in the retail, healthcare, and financial industries. DigitalPersona’s data and access protection software is shipped by computer manufacturers on millions of notebooks and desktop computers per year; its cloud- and Active Directory-managed solutions for full disk encryption, multi-factor/strong authentication and single sign-on (SSO) password management simplify compliance and cut IT costs. For more information contact DigitalPersona, Inc. at: +1 650.474.4000, or visit www.digitalpersona.com.

© 2011 DigitalPersona, Inc. All rights reserved. DigitalPersona and U.are.U are trademarks of DigitalPersona, Inc. registered in the United States and other countries. All other trademarks are the property of their respective owners.

Restaurant News Bites: KFC, Del Taco, O'Charley'sKFC is promoting their 100% breast meat Popcorn Chicken with a new deal. For a limited time, customers can pick up a large order of popcorn chicken morsels for just $2.99. A coupon will also be offered that adds a drink and a side item to the large popcorn chicken for just $3.99, making it a full meal.

Del Taco is adding new Pork Carnitas items, including the Carnitas Combo Burrito and the Carnitas Macho Nachos, for a limited time. The shredded pork is simmered slowly with spices and seasonings before being used in a variety of dishes. Guests who would like to try the new items can pick up a coupon for a free Carnitas Taco al Carbon on Del Taco’s Facebook page.

TCBY, The Country’s Best Yogurt chain, is focusing their expansion goals on Northern Colorado. To achieve this the chain recently signed new franchise agreements with Steve Lauer to open eight locations in the area by 2013. Lauer already owns and operates a number of Subway and Qdoba restaurants in Colorado.

O’Charley’s has hired a new Concept President who assumed the role on September 16th. Marc Buehler will be in charge of maintaining and developing the entire concept of the brand. He brings decades of experience to the company after serving as the President and CEO of Kona Grill until June 2011.

For the second year in a row, Boston Market has joined in the Dine Out For No Kid Hungry fund-raising week. Boston Market locations will offer a coupon for a free side dish for any customer who donates at least $1 between September 18th and 24th. The money will be used to fight childhood hunger in America.

Zagat’s 2011 National Chain Restaurants Survey has been topped by Outback Steakhouse and Bonefish Grill. Bonefish Grill won in six categories, including Top Overall, Top Service, Top Food and Best Seafood. Outback Steakhouse won Best Steak for the third year in a row and also won the Best Overall Value category.

Yogurtini is cashing in on the popularity of self-serve frozen yogurt with an expansion campaign. The chain will be opening their newest location in Highlands Ranch, Colorado this Saturday. To celebrate the grand opening the 2nd franchised restaurant will give away free frozen yogurt. Guests visiting between 4 and 7 pm can enjoy free yogurt and entertainment.

Highlands, North Carolina is celebrating their fifth annual Highlands Culinary Weekend in the beginning of November. Opening night will be held on the 10th at Highlands Country Club. Tastings and wine sampling will be held at a variety of restaurants and wine cellars around the city for the rest of the weekend.

Souplantation and Sweet Tomatoes, the two brands owned by Garden Fresh Restaurant Corp., have become the largest chain in America to be certified by the Green Restaurant Association. The company worked for over two years to achieve the certification. Upgrades to the entire store system and food production process were necessary.

Pizza Inn has announced their financial results for the 2011 fiscal year. The company saw a net income increase of $0.05 per share. Overall revenues increased in the final quarter by 10% and same store sales also grew by over 4%. Increases were also seen in all categories for the entire fiscal year when compared to the 2010 results.

KFC Serves Up Popcorn Chicken Special Offer

KFC Serves Up Popcorn Chicken Special OfferUnlike some nuggets that have been pressed or formed, each piece of KFC’s Popcorn Chicken features 100 percent off-the-bone premium breast meat chicken. Perfectly sized for eating on the go, each and every piece of Popcorn Chicken stays true to the commitment and high standards set by the Colonel decades ago.

“At KFC, we’re proud that we have a cook in every kitchen in all our restaurants, and we’re equally proud that our cooks don’t make nuggets. KFC’s Popcorn Chicken is real 100 percent off-the-bone premium breast meat.” said KFC Chief Marketing Officer Barry Westrum. “Stop by for a large order for just $2.99 and you’ll taste why our cooks are so proud of KFC Popcorn Chicken.”

Made with 100 percent premium breast meat chicken off-the-bone, Popcorn Chicken is marinated for a tender inside and breaded for a flavorful, fun crunch on the outside. Because it’s never pressed or formed, each easy-to-eat piece is a unique bite of the world’s most famous fried chicken, prepared everyday by real cooks in every KFC kitchen. Three of those cooks, Aaron McGraw, Robert Jefferson and Rachel Harris, are featured in the latest KFC commercials for Popcorn Chicken.

In addition to the nationally promoted offer of $2.99 for a large Popcorn Chicken, KFC is also offering a coupon deal for the week of September 19. The offer is for a Popcorn Chicken Combo, which includes a large order of Popcorn Chicken, a side item and a medium drink for $3.99 plus tax (at participating locations). To receive your coupon, visit KFC’s website and sign up for the Colonel’s e-mail club: http://www.kfc.com/emailclub/. (Popcorn Chicken available at participating KFC restaurants. Prices may vary. Tax extra.)

Visit www.kfc.com for more information on Popcorn Chicken.

 

Restaurants want a piece of food stamp pie

The number of businesses approved to accept food stamps grew by a third from 2005 to 2010, U.S. Department of Agriculture records show, as vendors from convenience and dollar discount stores to gas stations and pharmacies increasingly joined the growing entitlement program.

Now, restaurants, which typically have not participated in the program, are lobbying for a piece of the action.

Louisville-based Yum! Brands, whose restaurants include Taco Bell, KFC, Long John Silver’s and Pizza Hut, is trying to get restaurants more involved, federal lobbying records show.

That’s a prospect that anti-hunger advocates welcome, but one that worries some current food stamp vendors and public health advocates.

Continue reading . . .

 

Restaurant News Bites: Chipotle, Darden, Rudy's, Hurricane Grill & WingsHoward Schultz, the founder and CEO of the Starbucks corporation, has started a boycott on campaign contributions. His lead has been followed by Whole Foods and J.C. Penny. The boycott aims to encourage politicians from both parties to work together to solve the growing deficit problem. He is also encouraging companies to spend the money on hiring instead of campaign funding.

Chipotle Mexican Grill has funded the production of a new short-film called “Back to the Start”. The stop-action animation illustrates one farmer’s path to sustainable agriculture, a pursuit the chain aims to support. Willie Nelson contributed a cover of Coldplay’s song “The Scientist” to the 2 minute film that will air in theaters around the country.

To support the charitable actions of the Habitat for Humanity foundation, Darden Restaurants donated over $1 million of furnishings from their stores. The fixtures were removed as part of on-going renovations to Olive Garden, Long Horn Steakhouse and other restaurants owned by the company. The ReStore locations sold out of the re-used furnishings quickly.

KFC restaurants in Southern California are bringing the excitement of the 2012 London Olympics to the area now. The KFC Olympics will involve five competitions pitting the best chicken cooks against each other. The winner of each regional contest will compete in the Finals at the beginning of October.

The National Aquarium has a new dining experience to offer visitors. The former main cafe was renovated to allow the new Harbor Market Kitchen room to grow. The restaurant uses local fresh ingredients in a variety of innovative dishes. The old cafe had nearly 1.5 million visitors before the renovations.

Rudy’s “Country Store” and Bar-B-Q has added another NASA store location in the Houston area. The restaurant and store opened on September 1st. The first 100 guests in line when the store opened walked away with a $20 gift card for the chain. Other giveaways were also held throughout the grand opening celebration.

BJ’s Restaurants is proud to celebrate the opening of their newest location. The Jacksonville restaurant opened on August 29th and seats nearly 300 guests. The location features the chain’s full menu of pizzas, salads, and a variety of beer options. The signature 103” plasma screen television is also in place.

Syosset, New York is home to the latest Hurricane Grill & Wings location. The chain is known for offering over 32 flavors of hot wings. The grand opening in Syosset brings the brand’s total number to 41 restaurants. The beach-style atmosphere brings a relaxed and family-friendly option to the dining scene.

Pizza fans in Arlington, Texas has another chain to choose from. Mellow Mushroom Pizza Bakers opened their new location on September 5th. The menu features all of Mellow Mushroom’s classic pizza, salad and appetizer options. Gluten-free crusts and hoagies will also be available.

KFC and the SoCal KFC Colonel in Search of the Southland's Best CookSouthern Californians don’t have to wait until London 2012 to get their dose of Olympic competition. Beginning Wednesday, KFC Southern California is putting its best to the test in a KFC Olympics to determine the best chicken cooks in the Southland.

Coming on the heels of the KFC SoCal Colonel’s 120th birthday tour, in which the second-generation Colonel checked in on Southern California cooks to ensure the Original Recipe chicken was being prepared properly, the never-satisfied Colonel is putting his best cooks to the test in a KFC “Chicken Olympics.” Through mid-October, KFC SoCal and the Colonel, who like his predecessor hails from Kentucky, will host five regional chicken cook-offs that culminate in an Olympic Finals October 11 in Westminster.

Participants will be competing for a cash prize of $500 and the top honor of being designated Southern California’s best KFC Cook, a coveted title in the nation’s chicken capital with more than 700 competing chicken restaurants. Competing cooks will be judged on the preparation of three KFC staples: Original Recipe, Kentucky Grilled Chicken, and the Colonel’s Extra Crispy Strips. Judges will evaluate the three final products on the basis of uniformity and overall appearance.

“KFC makes America’s best fried chicken, so naturally we wanted to seek out and reward the best cooks that deliver on the Colonel’s promise and high expectations with a fun — but very real — competition,” said Shahid Chaudhry, vice president of the SoCal KFC Advertising Association.

Kicking off Wednesday, Aug. 31 in Corona, the regionals stop in Santa Ana, Escondido and Los Angeles before concluding at the finals at a KFC restaurant in Westminster. Awards will be handed out in a ceremony October 12 at the Taco Bell corporate headquarters in Irvine, Calif. Taco Bell is a sister brand to KFC under the Yum! Brands, Inc., umbrella.

KFC Olympics
August 31 — Inland Empire Regional: 1151 W. 6th St., Corona, CA 92882.
September 7 — Orange County Regional: 762 S. Harbor, Santa Ana, CA 92704.
September 13 — San Diego Regional: 639 N. Broadway, Escondido, CA 92025
September 14 — San Fernando Regional: 1244 S. La Brea Ave., Los Angeles, CA 90019
September 21 — Los Angeles Regional: 3061 Sawtelle Blvd., Los Angeles, CA 90066
October 11 — Finals: 6641 Westminster Blvd., Westminster, CA 92683
October 12 — Awards Ceremony: 1 Glen Bell Way, Irvine, CA 92618

KFC Corporation, based in Louisville, Ky., is the world’s most popular chicken restaurant chain specializing in Original Recipe, Extra Crispy and Original Recipe Strips with home-style sides, Honey BBQ Wings, and freshly made chicken sandwiches. There are more than 14,000 KFC outlets in more than 80 countries and territories around the world, serving some 12 million customers each day. KFC Corporation is a subsidiary of Yum! Brands, Inc., Louisville, Ky.

The main goal of the nation’s food stamp program has been to supplement the buying power of low-income residents when they shop for unprepared foods at grocery stores.

But a major restaurant company is lobbying the federal government on the Supplemental Nutrition Assistance Program, federal lobbying records show. Louisville, Ky.-based Yum! Brands has allies among advocates for the hungry who hope to give restaurants a greater role in SNAP.

Yum! Brand restaurants include KFC, Taco Bell and Pizza Hut.

A little-used provision dating to the 1970s allows states to OK restaurants for SNAP benefits. The provision allows the elderly, disabled or homeless – populations that might not be able to cook unprepared foods – the option of exchanging their SNAP benefits at participating restaurants, but only a few states have opted into the program. South Dakota is not one of them.

Continue reading . . .

 

Yum! Brands Directs First $1 Million of World Hunger Relief Funds to Help Fight Hunger in The Horn of AfricaYum! Brands, the world’s largest restaurant company and parent of KFC, Pizza Hut and Taco Bell, announced today that it is directing the first $1 million from its World Hunger Relief global effort to provide food to families affected by hunger and suffering the effects of drought in the Horn of Africa. The funds will help the United Nations World Food Programme (WFP) feed those in urgent need of food assistance.

Drought coupled with high food prices and conflict in the Horn of Africa is affecting more than 13 million people. WFP is rapidly moving life-saving food and nutritional products by sea, air and road to hungry populations in Ethiopia, Kenya, Uganda, Djibouti, and Somalia to address their needs. In Somalia alone, WFP is feeding 1.5 million people in the northern and central parts of the country and in Mogadishu which continues to fill up with those fleeing the famine zone.

“The situation throughout the Horn of Africa is desperate and we all need to help,” said David Novak, Chairman and CEO, Yum! Brands, Inc. “As a company with a huge heart, we believe it is critical to immediately commit the first $1 million from our World Hunger Relief effort to aid the people throughout the Horn of Africa.”

Novak and other senior executives and franchise leaders from KFC, Pizza Hut, Taco Bell and Yum! Restaurants International traveled to Honduras earlier this week to help WFP’s relief efforts in the country. As the second poorest country in Central America, Honduras is one of the many recipients of funds raised through World Hunger Relief.

There are nearly 1 billion hungry people around the world today. Hunger and malnutrition are the number one risk to health worldwide – greater than AIDS, malaria and tuberculosis combined.

Yum! Brands’ annual fall World Hunger Relief effort is the world’s largest private sector hunger relief initiative, spanning 110 countries, 38,000 KFC, Pizza Hut and Taco Bell restaurants and over one million employees, to raise awareness, volunteerism and funds for WFP and other hunger relief agencies. Multi-Grammy Award winner Christina Aguilera, the effort’s global spokesperson, will appear in a new public service announcement this fall as well as advertising, online efforts and posters in KFC, Pizza Hut and Taco Bell restaurants. Consumers can visit www.fromhungertohope.com or donate in the restaurants this fall. Every U.S. dollar raised will go directly towards WFP’s operations to fight hunger around the world.

Since World Hunger Relief launched in 2007, more than one million of the Company’s employees, franchisees and their families have volunteered more than 21 million hours to aid hunger relief efforts in communities worldwide. The effort has raised nearly $85 million for WFP and other hunger relief organizations and is helping to provide over 350 million meals and save the lives of millions of people in remote corners of the world.

Yum! Brands, Inc., based in Louisville, Ky., is the world’s largest restaurant company in terms of system restaurants with approximately 38,000 restaurants in more than 110 countries and territories. The company is ranked #214 on the Fortune 500 List, with revenues of more than $11 billion in 2010. Four of the company’s restaurant brands – KFC, Pizza Hut, Long John Silver’s and Taco Bell – are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories. A&W Restaurants is the longest running quick-service franchise chain in America. Outside the United States, the Yum! Brands system opened approximately four new restaurants each day of the year, making it a leader in international retail development. The Company has consistently been recognized for its reward and recognition culture, diversity leadership, community giving, and consistent shareholder returns.

WFP is the largest humanitarian agency fighting hunger worldwide. Each year, on average, WFP feeds more than 90 million people in more than 70 countries. For more information, visit www.wfp.org.

 

KFC Chronicles the Colonel Sanders' LegacyThirty years after Colonel Harland Sanders left his legacy as the iconic founder of Kentucky Fried Chicken, the brand is reinvesting in his image and memory via a website designed to reach a new generation.

To keep Sanders’ legacy alive, KFC has launched www.ColonelSanders.com, an online destination designed to collect photos, videos and stories about Colonel Sanders from family members, friends and everyday Americans who either met or knew of the American icon.

“Colonel Sanders, his secret recipe of 11 herbs and spices and all he achieved are the cornerstones of our company,” said Barry Westrum, chief marketing officer for KFC. “We’re honored to launch this project to preserve the memory of our founder by collecting stories from folks far and wide.”

Based on the submissions the website collects, KFC may compile and release the stories at a later date.

Along with being an iconic American entrepreneur, Colonel Sanders was also a Southern gentlemen, said Shirley Topmiller, who served as the Colonel’s assistant and worked at KFC for 28 years before her retirement.

“We know there are countless stories out there about the Colonel,” says Topmiller, who as Sanders’ assistant handled everything from scheduling his television appearances to ordering his famed white suits.

Now, Topmiller is helping to lead the campaign to preserve the legacy of her former boss.

“If you knew the Colonel, met him during all of his travels, saw him on television or just heard a story or two from a friend of a friend, we’d love to hear from you,” said Topmiller, “We want to preserve all of these great memories before they’re gone forever.”

At the age of 65, Harland Sanders turned a $105 Social Security check into a global chicken empire and until his death at the age of 90, traveled 250,000 miles a year visiting KFC restaurants worldwide. For years, he carried the secret Original Recipe in his head and the spice mixture in his car as he drove coast to coast visiting franchisees.

“I’m thrilled to be helping preserve stories from the Colonel’s life so that future generations can understand what an important role he played in the history of KFC and our country,” said Topmiller.

The Kentucky Fried Chicken concept was pioneered by Colonel Harland Sanders (1890-1980), whose cooking career began at age six. Sanders held jobs ranging from streetcar conductor to insurance salesman, but his cooking skills were a constant throughout his life. In 1930, Sanders operated a service station in Corbin, Ky., and filled the stomachs of hungry travelers who stopped in to fill up their gas tanks. Sanders soon moved his restaurant across the street when he could no longer keep up with the demand from travelers who he had been feeding at his kitchen table. In 1935, the Kentucky Governor made Sanders an honorary Kentucky Colonel for his contributions to the state’s cuisine. Over the next decade, the Colonel perfected his secret blend of 11 herbs and spices and the basic cooking technique still used at KFC today.

When Sanders was 65, a new interstate highway forced the closure of his restaurant and he was left with only his recipe for fried chicken and a $105 Social Security check. The Colonel hit the road and struck handshake deals with restaurant owners who agreed to sell his fried chicken. What began as a dream fueled by the Original Recipe, a no-quit attitude and a Social Security check grew into the world’s largest chicken restaurant chain. Until he passed away in 1980 at the age of 90, the Colonel still traveled 250,000 miles a year visiting KFC restaurants around the world.

There are more than 15,000 KFC outlets in 109 countries and territories around the world serving some 12 million customers each day. KFC Corporation is a subsidiary of Yum! Brands, Inc., Louisville, Ky.

Legend has it that Genghis Khan’s cooks tossed mutton, mushrooms and vegetables together to serve his soldiers quickly before battle. Eight centuries later, the same “hot pot” cuisine is now a contender as Yum! Brands’ next big restaurant chain, alongside fast-food outlets KFC, Pizza Hut and Taco Bell.

The pending $860 million acquisition of Little Sheep, with 700 locations in China and a handful elsewhere, including San Diego, could satisfy Yum’s search to fill the Chinese cuisine niche. Louisville-based Yum already touts itself as the world’s largest restaurant company, with 38,000 outlets.

Since announcing its purchase in April, company executives have spoken openly about the possibility of building the Little Sheep hot-pot concept into a global brand like KFC. Meanwhile, Chinese regulators are reviewing the purchase.

Continue reading . . .

David Novak, the chairman-CEO of Yum Brands, is on a mission to lift sales at the restaurant company — the parent of KFC, Taco Bell and Pizza Hut — and is challenging his ad agencies to do their part.

According to multiple people familiar with the matter, Mr. Novak has circulated a memo to the company’s lead creative agencies, calling for a “brainstorming session” that will involve its three main ad partners: WPP’s Ogilvy & Mather and Interpublic Group of Cos. siblings DraftFCB and the Martin Agency.

People familiar with the memo said Mr. Novak expressed discontent with the company’s U.S. business results compared with its international growth, and asked for agencies to assess the causes and come up with solutions. Solutions may include anything from untapped consumer trends to operations suggestions to innovations in the fast-food category. Mr. Novak is also understood to have inquired about what could be done on Yum’s part to help improve the creative work.

Continue reading . . .

Restaurant News Bites: NYC Restaurant Week, New Orleans Restaurant PromoNew York City’s Summer Restaurant Week this year will feature over 320 different restaurants. The event will take place over two weeks between July 11th and July 24th. Saturdays will be excluded from the special Restaurant Week specials. Each participating restaurant will offer a special three course meal for $24 at lunch and $35 at dinner.

New Orleans plans to highlight 40 of the city’s top restaurants this August for the 7th annual COOLinary Restaurant promotion. Diners will be able to eat a three course lunch for just $20 or a three course dinner for $35 or under for the entire month. The city also has over 1200 other restaurants that offer cuisine from all cultures and parts of the world.

KFC has seen great success with its decadent and premium Double Down sandwich in Canada. The chain released the bun-less, fried chicken patty sandwich for the second limited time run earlier this year in June. Demand in the northern country has grown so great that nearly 2 million sandwiches have been eaten so far and supplies may run out in the next few days.

The second quarter of this financial year is expected to be much better for U.S. restaurant brands despite food costs continuing to rise. Profits are forecasted to rise as large chains like McDonald’s and Yum Brands!, parent company of Taco Bell and KFC, expand in Asia. Starbucks is also finding success through the introduction of new single serving cup home brewing supplies.

Listening to children cry or scream while you eat in a restaurant can ruin your meal. The owner of McDain’s Restaurant and Golf Center in Pennsylvania has banned all children under the age of six to preserve the environment for adult diners. Owner Mike Vuick made the decision based on parents’ inability to control the volume of young children.

Hot pot cuisine is fabled to have been invented by the Mongols who had little time for cooking meals between battles. Yum! Brands is betting on the style to be the next big hit in fast food trends. Yum!, which already owns Taco Bell, Pizza Hut and KFC, is working on acquiring the 700+ Chinese locations and few U.S. locations of hot pot chain Little Sheep.

Cracker Barrel Old Country Store has secured a new credit agreement for the next five years. The credit line includes a revolving line of loans for up to $500 million dollars and a term loan of $250 million dollars. The agreement was signed with lenders from Wells Fargo, Merrill Lynch, and SunTrust Robinson Humphrey.

Frankie’s Sammiches began earlier this year as a food cart serving fresh Italian beef sandwiches to downtown Milwaukee. Now the sensation has become a fixed restaurant with the opening of a new storefront. The new restaurant will serve the original Italian beef sandwiches as well as burgers, other sandwiches, side items and Chicago style hot dogs.

Dickey’s Barbecue Pit has become the country’s largest barbecue restaurant chain by constant expansion. Now the restaurant chain is making agreements and plans for California growth. 23 new locations have been planned so far for the state for opening within the next year. The chain currently has 8 restaurants in California.

Zpizza is a national pizza chain that focuses on fresh ingredients and healthy yet tasty food. The new summer salad is a sweet choice for lunch or dinner. The Strawberry Goat Cheese Salad features walnuts, goat cheese crumbles, strawberries and a balsamic vinaigrette dressing over a mix of premium baby lettuces.

Restaurant News Bites: Burger King, KFC, California Pizza KitchenBurger King is running a chicken sandwich promotion to celebrate Independence Day. The Original Chicken Sandwich will be available for just $1.04, but will go back to its normal price after the 4th. The breaded chicken patty is topped with crisp lettuce and mayo for a classic chicken sandwich.

KFC first introduced their Grilled Chicken options in 2009. Customers who want a lower fat, flavorful chicken meal have made the grilled option very popular with the chain. Now KFC is relaunching their grilled items with improvements. The all-white meat breast pieces are now 20 percent larger.

California Pizza Kitchen is dedicated to innovation and the development of new pizza options. The national chain has announced that it is adding 10 new items to its menu, including new pizza varieties, bigger salads and fresh soups. A gluten-free pizza crust option is also being introduced that works with 29 of the current pizza topping configurations.

Restaurant managers do struggle with a variety of legitimate challenges during day-to-day operation, but taking responsibility for the location’s success is the key. Managers who find excuses not to succeed will simply not be able to deal with the myriad challenges of the restaurant industry. Taking accountability for the restaurant leads to a more successful management style.

Marble Slab Creamery is gearing up to release their newest flavor and will be giving away free scoops. July 11th will be “Red Head Appreciation Day” and anyone with red hair, whether it is natural or a wig, will receive a free scoop of Red Velvet Ice Cream. The new ice cream flavor combines the rich taste of red velvet cake with smooth ice cream.

Cold Stone Creamery released Cake Batter Ice Cream in 2003 and was surprised at its immense popularity. The chain is inviting cake batter fans to visit their local location for National Ice Cream Month. Cake Batter Ice Cream and Birthday Cake mix-ins will be highlighted for July. Customers can add cake pieces to their favorite flavor or other toppings with the Cake Batter flavor.

Classic summer flavors include the sweetly tart taste of lemonade, and Krispy Kreme is using this flavor for their newest creations. Try the lemon glazed cake doughnut, or the Lemon Kreme Pie filled doughnut. The Jolly Rancher Krispy Kreme Chillers make a perfect accompaniment to these new doughnut flavors.

Blue Bamboo is the work of chef Dennis Chan. The restaurant combines the best of Asian cuisine with the flavors and textures of traditional Southern cooking. This new style of fusion has made his restaurant very popular with Southern diners. Menu items include Panko Fried Tomatoes and Red Curry Shrimp and Grits.

Dickey’s Barbecue Pit is continuing to grow across the country and bring fresh smoked barbecue to small and big towns alike. Irving, California is now home to two locations for the chain as the newest restaurant opens. The chain is celebrating its 70th anniversary and this most recent opening brings the total up to 152.

Buffalo Wings & Rings has launched a completely redesigned website and is giving away nearly 2,000 wings to a lucky fan to celebrate. Guests who visit the official can enter to win 1,984 chicken wings in commemoration of the year the chain first opened. Joining the free Club ’84 loyalty program automatically enters each visitor and gives them access to special news and promotions.

Consumer Reports Fast Food Survey: McDonald's, Burger King, KFC, and Taco Bell LoseMcDonald’s popular slogan may be “lovin’ it” but consumers beg to differ, the fast food icon was joined by Burger King, KFC and Taco Bell among the lower ranked chains in Consumer Reports first ever major fast food ratings.

The survey, based on responses from 36,733 subscribers who made more than 98,000 visits to 53 fast-food chains revealed that readers found them to offer uninspiring food, only so-so service. Other major chains with relatively low scores: sandwich shops Arby’s and Quiznos and pizza joints Domino’s and Pizza Hut.

“Chains like McDonald’s and Taco Bell boast supersized values, but consumers don’t necessarily think they offer much bang for the buck,” said Tod Marks, Senior Projects Editor, Consumer Reports. “Fifty four percent of our subscribers cited low prices as a reason for picking a particular fast-food restaurant.”

By contrast, CR’s survey revealed good deals and even better meals at dozens of ever-present fast-food restaurants. Consumer Reports readers gave 21 of the 53 chains high marks for food.  Among the winners:

  • For burger fans, In-N-Out Burger rated highest of all 53 chains rated in Consumer Reports Survey with high scores for food, service, value and speed.
  • Chipotle Mexican Grill was among the best of 8 leading Mexican food chains, and earned high scores for food, politeness of staff and speed of service.
  • One chicken chain topped the rest hands down: Chick-fil-A. With outstanding scores for politeness of staff, and high marks for food, value, and speed of service, respondents rated it higher than seven other leading poultry stops.
  • If you’re craving a top-notch wedge, hero, hoagie, or sub served quickly with a smile on the side try Jason’s Deli or Firehouse Subs. Readers gave them the highest marks for food and favorable scores for politeness of staff and speed of services among 11 sandwich and sub chains.  
  • The single standout for pizza: Papa Murphy’s Take ‘N’ Bake Pizza, which has an unconventional concept where the patrons order a pizza to bake at home. It earned the highest marks for food, and exceptional scores for value, staff politeness and speed of service among the pizza chains.

Other Key Findings:

Diners want better food. Many restaurants scored higher for service—specifically, speed and politeness—than for food. At chains with the highest scores for food, 42 to 54 percent of patrons called the fare excellent, but at Burger King, KFC, McDonald’s, and Taco Bell, no more than 11 percent of patrons did. In fact, 15 to 19 percent of respondents who ate at one of those chains thought the food was fair, poor, or very poor. At Sbarro, an Italian chain, 27 percent of patrons judged the food fair, poor, or very poor.

Diners want a better experience. Whether they ordered cafeteria-style, at a counter, or at a drive-thru, or had food delivered, readers were much less pleased overall with fast-food restaurants than with casual full-service eateries like Cracker Barrel, Outback Steakhouse, and Red Lobster. Sixty percent of respondents said they were completely or very satisfied with their fast-food dining experiences vs. 68 percent of casual-restaurant patrons.

For the complete ratings of 53 popular fast-food quick-service chains, to find out which chains offer the best food according to Consumer Reports readers, or to learn more about survey results, visit www.ConsumerReports.org starting June 30th, or pick up a copy of August issue of Consumer Reports  wherever magazines are sold.

KFC Relaunches Kentucky Grilled Chicken

KFC Relaunches Kentucky Grilled ChickenBig, juicy news out of Louisville today: KFC, the world’s most popular chicken restaurant chain, is relaunching Kentucky Grilled Chicken. Following its introduction in 2009, KFC’s grilled option quickly became a customer favorite while changing the quick service restaurant landscape.

Now, KGC includes new, 20 percent larger white meat breast pieces. It’s marinated for juiciness, slow grilled, and seasoned with a secret blend of herbs and spices. With fewer calories, fewer fat grams and less sodium than Original Recipe, Kentucky Grilled Chicken provides a non-fried option from a brand America knows and loves – without sacrificing the great taste of KFC.

“The 2009 introduction of Kentucky Grilled Chicken was a defining moment in our brand’s storied history,” said KFC Chief Marketing Officer Barry Westrum. “And now, two years later, we’ve made this amazing product even better, including giving our customers the new, bigger white meat breast pieces they crave – 20 percent larger.”

“Our name is Kentucky Fried Chicken, but no quick service restaurant chain in America sells more grilled chicken on the bone than KFC. We’re proud of that,” Westrum added.

New Bigger White Meat Breast Pieces

Packed with flavor, Kentucky Grilled Chicken is marinated and seasoned with a savory blend of secret herbs and spices and slow-grilled to juicy perfection by real cooks in each of KFC’s thousands of restaurants coast-to-coast. The cooking process includes a blend of spices that is proprietary to KFC and uses custom-designed, patented ovens, making it KFC’s second secret recipe. In fact, the original copy of the KGC secret recipe is kept on an encrypted computer flash drive and safely stored in the high-security KFC vault – right next to Colonel Sanders’ handwritten Original Recipe.

Summertime Meals Featuring Kentucky Grilled Chicken

A Meal for one? Kentucky Grilled Chicken is a quick, tasty and non-fried option for lunch or dinner on-the-go, featuring home-style side items and a buttermilk biscuit.

Feeding a crowd? KFC’s famous bucket meals let consumers mix and match Kentucky Grilled Chicken with the Colonel’s Original Recipe or Extra Crispy chicken, for a meal sure to satisfy the tastes of any family’s pickiest eaters. (Kentucky Grilled Chicken available at participating KFC restaurants. Prices may vary. Tax extra.)

KFC Elevates Cook Aaron Person as Restaurant Chain's First-Ever Chief Chicken OfficerKFC has selected Orlando, Fla. KFC cook Aaron Person as the company’s first-ever Chief Chicken Officer, a newly created position designed to serve as spokesman for the rollout of the restaurant chain’s new Cook Certification Program. Thousands of KFC cooks across the country will participate in this initiative as the chain works to ensure each and every restaurant location continues to maintain the quality Colonel Sanders demanded more than 70 years ago.

“At KFC we pride ourselves on having trained cooks in every one of our kitchens coast to coast, preparing the world’s best chicken that our customers know and love every day,” said Barry Westrum, chief marketing officer for KFC. “Our CCO was selected from a long list of KFC cooks who have exemplary work records and are great role models for their coworkers. We are confident our restaurants across the country will benefit from Aaron’s ‘So Good’ advice.”

Person will star in videos designed to reinforce how to best prepare Original Recipe chicken “The Hard Way” – hand-breading and cooking the chicken fresh every day, just like Colonel Sanders did. Person may also potentially star in a commercial highlighting the cooks in every kitchen at KFC. The chain is currently airing commercials starring actual KFC cooks instead of actors, showcasing a number of the cooks from KFC kitchens across the country – some who have been loyal to KFC kitchens for more than 20 years.

“I’ve had the honor of cooking Colonel Sanders’ recipes every day for the past 25 years and I can’t believe I’ve been chosen from more than 5,000 KFC cooks nationwide to take on this new role of Chief Chicken Officer at KFC,” said Person. “I’m excited to team up with our incredible roster of cooks all over the country so we can continue to elevate the service we provide our consumers at KFC each and every day.”

In his 25 years as a cook at KFC, Person has developed a passion for teaching new cooks how to best prepare the chain’s beloved chicken. The high standards he holds himself to every day are evident through the accolades he’s already received in his career. Earlier this year, Person was recognized by KFC President John Cywinski for “outstanding product” and he was once the only participant in a company team challenge to receive a perfect score for preparing chicken. When he is not at the KFC kitchens, Person, who is married with five children and six grandchildren, enjoys spending time with his family.

Restaurant News Bites: KFC, Smashburger, Noodles & CompanyThe KFC restaurants located in Canada will soon be under new management. The Soul Restaurants Canada company will take responsibility for 204 KFC restaurants in Canada, with the majority of these locations in British Columbia and Ontario. The company has already managed locations in the UK for over 30 years.

Dolores Onate, the owner of two Mexican restaurants in Decatur, Illinois, was found guilty of violating labor laws by refusing to pay her employees properly for overtime. She also required employees to endorse their paychecks to the restaurant so she could take back part of their pay, making their hourly wage below minimum standards. She has been ordered to pay $1.15 million in backpay and damages.

Smashburger, one of the country’s fastest growing burger chains, is kicking off a new summer celebration with a focus on the Classic Smashburger. The “Why I Love the Classic Smashburger” video contest invites Facebook fans to send in their entries until June 24th. The grand prize winner will receive free Smashburgers for a year. Fans who vote will also have a chance to win prizes.

Noodles & Company is adding two new salads that combine all of the fresh flavors of the season into one bowl. The Backyard Barbeque Chicken salad begins with a bed of mixed greens topped with fresh corn, pulled chicken breast and a smoky dressing. The Very Berry Spinach Salad offers bacon, strawberries, blue cheese and a balsamic fig dressing.

Benihana wants guests to come and have a fine dining experience at an affordable price. They’ve put their popular five course Filet Mignon and Chicken for Two at the bargain price of $46 for the month of June. This meal is great for any of the many holidays in June, including Father’s Day and Graduation. The meal includes appetizers, entrees, sides and drinks for two diners.

Del Frisco’s is making some very important promotions. Chef Thomas Dritsas has been moved to the newly created Vice President, Corporate Executive Chef position to oversee the culinary preparations of all restaurants in the chain. Bill Martens is now the Vice President, Corporate Executive Chef that works to manage assets and oversee the development of new restaurants.

Thomas Emmons learned discipline and the value of hard work during his time in the Marines, and now he’s using those skills to open a new Dickey’s Barbecue Pit location. His new restaurant will be the first for the chain in Mesa, Arizona. Emmons enlisted the help of his mother in opening the new business. He first experienced the Dickey’s brand while living in Ft. Worth, Texas.

Moe’s Southwest Grill is offering everyone a chance at winning $10,000 in their new “Dance Your Queso Off” contest. Dance videos under 30 seconds in length can be submitted through the ILoveQueso.com website until July 24th. The judges from Moe’s will pick the most inspiring and original one and award the dancer with the grand prize.

Pollo Campero is opening their first San Francisco location now that the local zoning commission has approved their request. The new restaurant will open by the end of this year in the Mission District. The South American chain first arrived in America in 2002. Primary locations were built in Los Angeles, but it took popular demand to bring the chain to the Bay Area.

On June 11th guests to Jack’s Bar and Grill in Lincoln Park will get to enjoy a fun Jimmy Buffet inspired Margaritaville celebration. Drink specials include $5 Patron shots, $5 Margaritas and $3 Coronas. A Mexican themed buffet will also be available and the bar will be decorated in a tropical theme to match.

KFC Canada Finds its Soul Mate

KFC Canada Finds its Soul MateYum! Restaurants International, Canada and its KFC brand has found a new soul mate in its most recent Canadian franchise partner — Soul Restaurants Canada Inc. (“Soul Canada”), an affiliate of Soul Foods Group, which has a 30 year successful track record with the KFC brand.

Effective June 1, 2011, Soul Foods Group takes over the management of 204 KFC restaurants in BC and Ontario through its Canadian affiliate.  The company already operates more than 45 successful KFC restaurants in the United Kingdom and was voted Yum! UK franchisee of the year in 2010.

“The KFC Canada team is excited to welcome on-board like-minded partners who appreciate the appeal of the brand — and who, together with our existing franchise partners, understand the benefits of investment and innovation,” says Sabir Sami, Yum! Restaurants International, Canada’s President and General Manager.

“The quality of franchise partners and people in the KFC Canada organization is impressive and we believe the brand will flourish with more support,” explains Aly Janmohamed, President, Soul Foods Group, adding that his company’s UK restaurants are enjoying growth and success.

“Our team is committed to capital investment and a renewed focus on innovation to ensure that KFC reaches its full potential in Canada,” promises Aly Janmohamed.

Sami confirms transition teams are ramping up to help Soul Canada accelerate improvements quickly.  “Canadian KFC fans can expect to see an aggressive renovation initiative, customer service upgrades and exciting, innovative new products,” he says.

Tweeting about eating may seem like Internet noise to some, but the folks at Louisville-based Yum! Brands’ KFC, Pizza Hut and Taco Bell, as well as Papa John’s International, increasingly are talking back.

Reading and reacting to the daily blizzard of tweets, Facebook posts and other social media traffic has increasingly become an integral part of the restaurant industry.

All have staff who read and respond to what people say about the brands online. Most post specials and coupons, too, like the regular Facebook promotions local pizza chain BoomBozz offers to Facebook fans. Just as important, companies say, is to act or talk back to what consumers are saying about their brands.

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