Garden Fresh Restaurant Corp. has named David Goronkin chief executive officer, replacing company founder Michael Mack.

The San Diego-based operator or franchisor of 126 restaurants in 15 states is the parent company to the Souplantation and Sweet Tomatoes salad-buffet restaurant brands and is one of several restaurant properties in the portfolio of private-equity firm Sun Capital Partners.

Goronkin most recently was chief executive officer of Real Mex Restaurants. He resigned from Real Mex on May 21, three months after the company — parent to El Torito, Chevys Fresh Mex and Acapulco — was acquired out of bankruptcy by a group of note holders.

“I am excited and honored to be joining the Garden Fresh team,” Goronkin said in a statement. “The company has a strong, values-based culture, and Souplantation and Sweet Tomatoes are two great brands that are well-positioned as more Americans seek out fresh, healthy dining options. I’m confident Garden Fresh can capture this opportunity and build on the company’s past success.”

According to research for the upcoming Nation’s Restaurant News Top 200 census, Garden Fresh had aggregate net sales of $305.1 million for its most recent fiscal year, ended in September 2011, up 4.1 percent from the prior year. The company had 121 total restaurants between Souplantation and Sweet Tomatoes at the end of fiscal 2011 and 115 restaurants at the end of fiscal 2010.

Mack, who founded Garden Fresh in 1983 after acquiring the first two Souplantation restaurants, will leave the company, as will president Ken Keane, who would not be replaced, according to the company.

“Both Ken and I have had a great relationship with the people at Garden Fresh and, for the past six years, with Sun Capital,” Mack said. “We leave knowing the company is in good hands and has very bright prospects for the future under its new, experienced leadership and with the support of our great management team and dedicated employees.”

Goronkin had been chief executive of Real Mex less than a year, having joined that company June 1, 2011, after two years as president and chief executive of Bennigan’s Franchising Co. Prior to that, he had been chief executive of casual-dining brand Redstone American Grill for about 10 months, following more than four years as chief executive of Famous Dave’s of America Inc.

While president and CEO of Famous Dave’s, Goronkin won a Silver Plate Award from the International Foodservice Manufacturers Association in 2006. He also has served on the board of the National Restaurant Association and the NRA Educational Foundation.

Boca Raton, Fla.-based Sun Capital acquired Garden Fresh in 2005.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN

Starbucks on Monday announced an agreement to acquire the San Francisco-based Bay Bread LLC and its La Boulange bakery brand for $100 million in cash.

With the acquisition, the Seattle-based coffeehouse chain plans to beef up its food offerings in Starbucks stores with La Boulange-branded French pastries, croissants, breads and muffins, which company officials hope will drive traffic and build the chain’s food attachment rate.

Long term, however, Starbucks officials also plan to build La Boulange into a national brand with its own retail outlets across the country, as well as moving into grocery and other channels with branded consumer packaged goods, or CPG, products.

Howard Schultz, Starbucks’ chair, president and chief executive, said the company plans to bring the artistry of the French bakery to the marketplace in the same way it brought the “romance” of the Italian espresso bar to virtually every corner of America.

“This is an investment in our core business. After more than 40 years, we will be able to say that we are bakers too,” said Schultz.

Under the agreement, Starbucks will hire La Boulange founder Pascal Rigo, who will serve as senior vice president and general manager of the La Boulange brand for Starbucks. La Boulange currently operates 19 locations around the San Francisco Bay area. The bakery chain was founded in 1999 by Rigo, who began baking at age 7 in Paillet, France.

The San Francisco bakery chain is known for its use of high-quality ingredients, including European-style butter, specialty grain and locally sourced produce, Rigo said in a statement. “We weigh, mix, divide, roll, cut, bake and care about every croissant, cookie, pastry, loaf and bread that goes into our pastry case, and we are looking forward to sharing our passion with Starbucks’ loyal and discerning customers,” he said.

Starbucks also plans to continue offering Bay Breads wholesale products to restaurants, hotels and specialty grocery stores and may expand that aspect of the business over time, the company said.

The French bakery is being sold by Next World Group, a team of management and investors that has worked with Rigo to build the brand over the past six years.

Sébastien Lépinard, Next World Group’s founder and majority investor, said Starbucks shares the bakery chain’s values and vision for bringing premium products to customers in a socially responsible way. “We trust that Starbucks is the best partner to take La Boulange to the next level while staying true to the brand and bringing the romance of an authentic French bakery to life,” he said.

Food now accounts for about $1.5 billion in revenues at Starbucks —about 20 percent of overall sales — Schultz said. “La Boulange gives us a significant catalyst to growth that even further.”

Only about one-third of Starbucks transactions have food attachments, he noted. And, though the coffeehouse chain has made efforts to build its food sales in recent years with Bento box lunches, mini desserts such as cake pops and more healthful breakfast sandwiches, the opportunity remains to invest in that core aspect of the business.

“Starbucks is the healthiest it has been in decades,” he said. “Now is the time to enhance the experience and create differentiation in the marketplace between us and everyone else.”

However, food sales grew by 14 percent in each of the first two quarters of fiscal 2012, Schultz said.

Starbucks locations in the San Francisco area will be the first to see La Boulange products in stores by 2013, Schultz said. The products will be added to Starbucks locations across the country and made using existing production facilities and outside facilities.

While plans for eventual CPG products are “baked in,” Schultz said that won’t happen until La Boulange has been built into a national brand. Starbucks also will open “flagship” stores of La Boulange around the country, which would further bolster the strength of the brand and offer “icing on the cake,” said Schultz.

“The unit economics are attractive and we could add something to it. It’s also an opportunity to showcase Starbucks coffee,” he said.

La Boulange marks the second large acquisition aimed at helping to build Starbucks' retail business. Last year, the company bought the Evolution Fresh juice brand for $30 million, bringing the bottled juice products into coffeehouse locations as well as launching a new juice bar concept the company plans to grow.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

The founder of the growing Pitfire Artisan Pizza chain in Los Angeles is launching a restaurant incubator, called American Gonzo Food Corp, to help develop artisanal brands.

Paul Hibler, the five-unit Pitfire’s creator and acting chair, will introduce Superba Snack Bar, a new pasta concept developed through the incubator, later this month. The brand was created by chef Jason Neroni, formerly of Osteria La Buca in Los Angeles, and is a California take on Italian small plates.

Superba is the first of several brands Hibler plans to roll out through the incubator. His goal is to nurture artisanal brands with the support of both infrastructure and funding.

Hibler has partnered with an unnamed investor for the business incubator, which will run separately from the Pitfire chain.

Meanwhile, however, Pitfire has brought in Carlos Bernal, former president of Rice Garden Inc., as chief executive. Bernal will also serve as chief executive of American Gonzo Food Corp, said Hibler, and hold the title “chief gonzo officer.”

Pitfire is planning to open four more locations in the next 18 months, and Hibler said same-store sales for the “artisan casual” chain rose 28 percent so far this year after a 23-percent year-over-year increase in 2011.

Hibler expects that Superba will strike a similar chord with its focus on “high value artisan food and great design.” The restaurant will be located in the beachside neighborhood of Venice and will feature handmade pastas, charcuterie, local cheeses and produce.

With communal tables, indoor/outdoor seating and an open kitchen, the restaurant’s design, by Los Angeles-based Design, Bitches, will be a key factor, Hibler said. Pitfire locations have also won praise for their contemporary design.

Superba’s front of the house will be run by general manager Alexander Gonzalez, who spent five years previously at Alinea in Chicago.

Superba will be somewhat higher-end than Pitfire in that “there will be a chef in the restaurant,” said Hibler. But, like Pitfire, the goal is to create a space that will be approachable and very casual, he noted, adding that all dishes will be under $20.

“We want to create community places for people to gather together, not expensively,” Hibler said. “The value will be focused on the plate.”

Superba Snack Bar is just the first part of the Superba plan. Later this year, the company will open Superba Food & Bread, also in Venice. Hibler describes it as a bakery café concept that is a “cross between Tartine in San Francisco and Blue Ribbon Bakery” in New York.

Superba Food & Bread will offer breakfast, lunch and dinner, and it will also operate as a full retail bakery, from which area residents can “subscribe” to get bread delivered by bicycle.

Hibler said he hopes to offer artisan entrepreneurs a better chance of building a sustainable business. Too often, he said, chefs “sell their souls and take a bad deal or work for free,” or skip necessary aspects of building infrastructure, like human resources or accounting.

The business incubator also owns both buildings for the Superba locations, he noted, so the restaurants will not be vulnerable to lease conditions.

Hibler said more concepts are in the works, but he said it was too early to offer details.

Building the Superba concepts not only allows Hibler to exercise his creative muse, but it also allows him to tap what he sees as a fertile market in Los Angeles for artisanal brands that offer sophisticated local food in a relaxed, community-focused settings. “This is the direction food is going,” he said. “L.A. is a great proving ground and it has the best economics for this.

“There’s no place like L.A.,” Hibler added. “You can open restaurants here that will do numbers that will blow your mind.”

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

Au Bon Pain has launched a dozen new menu items that are part of a platform the bakery café chain is calling “Sandwich 2.0.”

Stefano Cordova, the chain’s executive chef and senior vice president of food and beverage innovation, said the sandwiches are designed so that “each bite counts." Each sandwich’s “architecture” is meant for maximum impact on the palate, generally with high-flavor sauces on the bottom of the sandwich and protein on the top.

 “Our mouths are designed that way,” he said. “we have canines on the top to bite, and the bottom is more designed for texture and smoothness.”

Each sandwich also is meant to be a complete meal, nutritionally, with protein, starch and vegetables.

Cordova, who started at Au Bon Pain in April of 2011, following a stint as corporate chef at Italian casual dining chain Bertucci’s, said he developed the items from June to November and started gradually rolling them out in December. The 11 permanent new items were rolled out systemwide in April, and a summertime lobster roll that’s part of the new platform will be rolled out next week for $12.99.

Cordova said that, although the chain will accommodate special orders, “the majority like the way they are constructed. We don’t get many of those requests. Most of the sandwiches are accepted the way they are."

The new lobster roll, called the lobster salad BLT, is made with lobster claw and knuckle meat mixed with light mayonnaise and topped with applewood smoked bacon and sliced tomatoes. It’s served on a lightly toasted eggless brioche that Cordova developed, replacing the croissant that was used for Au Bon Pain’s lobster salad sandwich last year.

Cordova said they found that a majority of his customers preferred eggless bread and didn’t like it as sweet as typical brioche. “The sweetness only comes from the butter in the brioche,” he said, adding that he hopes to introduce a new bread every few months at the restaurant and develop a sandwich to go with it.

Of the 11 permanent new items, which vary in price depending on the market but range between $5.79 and $6.99, the most popular is the Napa chicken wrap with avocado, according to Au Bon Pain executives. For that item, a low-sodium flour wrapper is spread with a lemon chive aioli and rolled with avocado, romaine lettuce, tomatoes, cucumbers and lemon-marinated grilled chicken.

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The second most popular item is the grilled chicken avocado, served on a toasted baguette with applewood smoked bacon, tomatoes, mesclun, Dijon mustard and blue cheese dressing.

The other new sandwiches are:

• Turkey and Swiss on a multigrain baguette with tomatoes and a honey pecan spread made with cream cheese, goat cheese, honey and finely chopped pecans. “I think the combination of sweetness with the turkey is almost like a Thanksgiving dinner,” Cordova said.

• Black Angus roast beef and herb cheese on a multigrain baguette with arugula and tomatoes.

• Black Angus roast beef and Cheddar on ciabatta with tomatoes, mesclun, mayonnaise and Dijon mustard. Cordova explained that the roast beef sandwich on ciabatta has bolder flavors to balance the milder bread.

• Black Forest ham and Cheddar on a multigrain baguette with tomatoes and honey mustard.

• Chipotle black bean burger with avocado — a vegetarian offering on ciabatta with chipotle Cheddar, caramelized onions, tomatoes and chipotle mayonnaise, served warm.

• Grilled chicken on ciabatta with tomatoes, mesclun and lemon aioli. “If someone wants a nice sandwich that’s plain but also flavorful, this is the one you want,” Cordova said.

• Mediterranean wrap with red pepper hummus, feta, field greens, tomatoes, Kalamata olives, cucumbers and a sun-dried tomato spread that Cordova describes as “a very thick sun-dried tomato vinaigrette with onions and garlic." He added, "It’s something to refresh your mouth from the cheese and the other vegetables.”

• Southwest tuna salad wrap with chipotle Cheddar, romaine, tomatoes and chipotle mayonnaise.

• The Veggie — a multigrain baguette with grilled eggplant, roasted red peppers, fresh mozzarella, arugula and lemon aioli. Cordova said the mozzarella for this sandwich is delivered to each restaurant two to three times per week.

Boston-based Au Bon Pain operates and franchises 318 units worldwide.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary
 

Giving the restaurant industry phrase “drive traffic” new meaning, Denny’s has launched a location-based smartphone app for its new 50 State Challenge marketing campaign.

The Spartanburg, S.C.-based family-dining chain released the app and kicked off the 50 State Challenge to promote its Tour of America menu offered for the summer. Customers are invited to “check in” on the mobile app whenever they visit a Denny’s location, and in return, they'll receive digital badges and other incentives.

The program's incentives and rewards include meal discounts and free menu items. The offers show up under a “coupons” tab within the mobile app and are redeemable in Denny's restaurants.

The app, which Denny's developed with New York-based ad agency Gotham and Rain, an interactive media developer based in American Fork, Utah, also includes a restaurant locator and a leaderboard.

The goal of the challenge is to check in at a Denny's in each of the 50 U.S. states. The person who does that first will win a grand prize of free Grand Slam breakfasts for life.

Denny’s will also allow app users to play the game in teams of up to three to accomplish the 50-state mission faster. Groups can link up using their e-mail or Facebook accounts, and if the team wins the challenge then all of the team members will win free Grand Slam breakfasts for one year.

Chief marketing officer Frances Allen said in a statement that the chain’s first mobile app is a loyalty marketing effort aimed particularly at its younger customers, who are heavy users of social media on mobile phones.

“So many of our guests stop in to Denny’s when they’re on their summer road trip, and we wanted to incentivize those adventure seekers to stop in at Denny’s for a chance to accumulate prizes,” she said.

Minneapolis-based Dairy Queen is running a similar campaign through August, the Oreo Blizzard 100, leveraging the 100th anniversary of the Oreo, which the chain said is its most popular Blizzard topping. The promotion is done in teams using Facebook’s check-in feature, and teams that successfully check in to 100 total Dairy Queen locations by the end of the summer will be eligible for a grand-prize drawing for $100,000.

In addition to Denny’s 50 State Challenge, the family-dining chain also rolled out a new mobile-enhanced website to make it easier for customers to navigate using a smart phone.

Denny’s operates or franchises 1,670 restaurants in the United States and six foreign markets.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN
 

Eatzi’s Market & Bakery debuted its third unit in mid-May in the Dallas suburb of Grapevine, Texas.

The Grapevine Eatzi's occupies 10,000 square feet of freestanding retail and foodservice space in a former Luby’s Cafeteria site. The new unit puts emphasis on its “Meals for the Taking” motto and offers limited seating, similar to the two existing locations. It serves daily from 7 a.m. to 10 p.m.

The culinary retail concept, which first opened in 1996 and became known for its innovations in take-home meals, has signed a lease for a fourth location in Plano, Texas.

Eatzi’s is owned by its original creator, Dallas-based restaurant impresario Phil Romano.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless

Mendocino Farms on Tuesday announced a capital investment from private equity firm Catterton Partners that will aid the gourmet sandwich chain’s growth.

Mario Del Pero, Mendocino Farms’ founder and chief executive, declined to characterize the investment or terms of the deal but said the agreement will offer additional financing, as well as support for the seven-year-old concept’s efforts to continue its expansion.

This is the second significant investment for five-unit Mendocino Farms. In 2010, Cosi Restaurants founder Nick Marsh, through New York-based GrowthPoint Restaurants, committed $1.2 million to grow the concept.

Del Pero said Marsh remains involved and sits on Mendocino Farms’ board. With the Catterton deal, however, a new board member will join: Industry veteran Bill Allen, former chair and chief executive of OSI Restaurant Partners LLC — now known as Bloomin’ Brands Inc. — which is parent to Outback Steakhouse and other brands.

Los Angeles-based Mendocino Farms was founded in 2005 by Del Pero and his wife and business partner Ellen Chen. With a menu developed by former fine-dining chef Judy Han, the concept has developed a cult-like following for its high-quality sandwiches, such as a signature Kurabata pork belly banh mi or the “Not So Fried” chicken with house pickle mustard slaw.

The chain recently opened its fifth location in Los Angeles near the city’s historic Farmer’s Market shopping center, and a sixth is under construction downtown.

Del Pero said two to three new units are scheduled to open in both 2013 and 2014, which will likely include a move into neighboring Orange County, he said.

“One of the many deal points with Catterton was that they wanted to maintain our growth plan: slow and steady,” Del Pero said.

Catterton’s experience with other restaurant brands also was a selling point for Mendocino Farms, Del Pero added.

Restaurant chains in Catteron’s portfolio currently or in the past include Cheddar’s, First Watch, Outback Steakhouse, Noodles & Co., and P.F. Chang’s China Bistro Inc.

“Mendocino Farms is redefining the sandwich category through its creative culinary approach to developing gourmet sandwiches using only the finest ingredients in a setting that has a modern yet rustic aesthetic, and with a service model and execution that is best in class," said Jon Owsley, a partner at Catterton, in a statement. "We look forward to growing the Mendocino Farms brand and helping to expand the concept’s geographic footprint beyond its current Los Angeles locations.”

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
 

Taco Bell is planning the national rollout on July 5 of its new “gourmet-inspired” Cantina Bell menu that was developed by chef Lorena Garcia.

After testing the dishes in about 150 units over the past few months in Louisville, Ky., and Bakersfield, Calif., the Irvine, Calif.-based chain said it would add the expanded menu offerings to almost all of its 5,600 locations across the country.

The Cantina Bell menu includes a new tier of upgraded options developed with the assistance of celebrity chef Garcia, who was a judge on last year’s “America’s Next Great Restaurant” on NBC and will appear on this season’s “Top Chef Masters” on Bravo.

Dishes on the menu include a burrito or bowl option with chicken, steak or vegetables, including upgraded ingredients that had not previously been available at Taco Bell. Among them: whole black beans cooked with Garcia’s spice blend; cilantro-spiked rice; all-white-meat chicken in an herb-and-citrus marinade; roasted corn salsa; Hass avocado guacamole; creamy cilantro dressing; romaine lettuce and pico de gallo — options more typically found at fast-casual Mexican concepts such as Chipotle Mexican Grill.

Recommended pricing for the new Taco Bell items, however, will remain under $5, the company said.

The move comes at a time when Taco Bell is touting the success of its new Doritos Tacos Locos, which debuted in March. Taco Bell sold more than 100 million of the tacos in roughly the first 10 weeks, which has helped turn around sinking sales.

Taco Bell is also rolling out a new breakfast platform, as well as a Happier Hour daypart for snacking.

At an investor conference in May, Taco Bell chief executive Greg Creed said the Cantina Bell menu has increased average check, average unit volumes and guest counts in test markets.

Creed also noted that the Cantina Bell menu did slightly better in the test market of Bakersfield, Calif., where Chipotle has a greater presence, offering “context” for Taco Bell’s planned menu moves.

Rob Poetsch, Taco Bell spokesman, said the Cantina Bell menu originally included a taco that was dropped from the rollout plans. “Our customers seemed to find more value in the burrito and the bowl,” he said.

The Cantina Bell menu, however, is a platform the chain plans to develop further, he said, with the addition of more protein options and other ingredients still to come.

The rollout will be supported by an integrated television and online campaign that showcases Garcia’s passion for the new products.

Taco Bell also said it is guaranteeing the quality of its Cantina Bell menu items; if customers try them and don’t like them then Taco Bell will replace their meal.

“Lorena is truly an inspiration, and her new menu and passion inspired us to fall in love with our food again and realize what great quality, made-fresh-to-order food we already had,” said Brian Niccol, Taco Bell Corp.’s chief marketing and innovation officer, in a statement. “Additionally, she created a high-quality, value-driven lineup of new offerings and new ingredients that would create a broader array of tastes and flavors our consumers are seeking."

Taco Bell is a subsidiary of Louisville, Ky.-based Yum! Brands Inc.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
 

Seattle’s Best Coffee has signed an exclusive agreement with Coinstar Inc. to roll out new automated coffee kiosk machines in thousands of grocery and other retail stores across the country, bringing premium coffee to places it was never served before.

Under the five-year agreement, the companies will begin rolling out the unmanned machines — dubbed Rubi — this summer, with plans to install them at about 500 locations by the end of the year.

The Rubi kiosks grind whole coffee beans and brew each cup to order. Specialty drinks are also available, such as mochas or vanilla lattes, with prices starting at $1.

“This relationship is a logical next step in our strategy to bring great coffee to new and unexpected locations where it’s traditionally been hard to find great coffee,” said Jim McDermet, Seattle’s Best Coffee’s senior vice president and general manager, in a statement. “Our Seattle’s Best Coffee fans will be delighted to find their favorite coffee now available around-the-clock at places they visit regularly each day.”

Seattle’s Best Coffee, a Seattle-based secondary brand owned by Starbucks Corp., has been aggressively growing its distribution presence in recent months with an expanded packaged line in grocery stores.

The brand is served by a growing number of national restaurant chains, including Taco Bell, Burger King and Subway, and Seattle’s Best has also been moving into convenience stores at Chevron ExtraMile locations.

Last year, Seattle’s Best lost almost 475 retail outlets in Borders Bookstores when that retail chain was liquidated. The coffeehouse brand continues to grow through franchising in nontraditional locations, and earlier this year said it was testing a new drive-thru unit.

Coinstar operates the Redbox self-service DVD rental machines, as well as the namesake automated coin-counting kiosks. The company has about 36,800 Redbox outlets and 20,200 Coinstar machines in supermarkets, drug stores, mass retailers, convenience stores and restaurants.

Paul Davis, Coinstar’s chief executive, said the Rubi machines will “reimagine” the coffee experience for customers, delivering “the kind of quality, convenience and value that we know coffee drinkers on the go will appreciate.”

Rubi machines will initially be installed in grocery and drug stores, and other high-traffic locations in the Northeast and West Coast.

Seattle’s Best Coffee has about 100 units in the U.S. and Canada.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
 

Bob Evans Farms Inc., the operator of the Bob Evans family-dining brand and the Mimi’s Café casual-dining chain, said it will continue to invest in refurbishing its restaurants and value-driven menu offerings to help grow sales meaningfully and accelerate earnings growth over the next year.

“Our company has arrived at an inflection point,” chief executive Steve Davis said during Bob Evans Farms’ fourth-quarter earnings call. “We’ve never been better-positioned to drive consistent sales growth.”

The ongoing Farm-Fresh Refresh program at Bob Evans produced 87 remodels in fiscal 2012, with refurbished units showing sales up 5 percent over the rest of the chain, executives said. The company plans to remodel 150 restaurants in fiscal 2013, including 40 locations in the Columbus, Ohio, market in the first quarter.

Three Mimi’s Café restaurants are scheduled to be refreshed as well in 2013, the company said.

Chief financial officer Paul DeSantis said one of the biggest benefits to remodeled Bob Evans units was the addition of the bakery, which generated incremental sales. The restaurants also were afforded the opportunity to retrain their crew members during the construction phase of remodeling, when restaurants were closed.

Davis noted that carryout sales, which are a large focus in remodeled stores, grew to 11 percent of total restaurant sales for Bob Evans in fiscal 2012, up from the single digits only a few years ago.

“We have a goal for 20 percent [in fiscal 2013], but we see an opportunity beyond that for carryout,” Davis said. “It is high-growth opportunities such as these where we will focus our investments.”

For Mimi’s Café, which continues to lag behind casual-dining peers, the company will continue trying to boost bar sales and carryout sales, which grew 9 percent and 6 percent, respectively, in fiscal 2012 compared with the prior year.

Value will drive further innovation

Davis was pleased with Bob Evans’ growth in carryout sales and expressed optimism for bakery sales, both of which were made possible in restaurants remodeled through Farm Fresh Refresh. But across the entire system, he said, Bob Evans and Mimi’s Café both need to make their value propositions more attractive, as both brands were vulnerable to dips in consumer confidence resulting from things like higher gas prices.

“It’s the same trend that you see in the economy as a whole, which means we have to stay on value,” Davis said. “The same thing needs to happen at Mimi’s, where we need to find a way to bundle value, which doesn’t always mean the lowest price but getting more for your money. We don’t see that changing any time soon, so we’ll continue to innovate around value.”

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At Bob Evans, he said, recent offerings like the $6 Farmhouse Deals or the $9.99 3-Course Steak Dinner launched in April did not require much new culinary research and development but rather an effort to repackage existing dishes with a more overt value proposition.

“When you look at our 10 meals under $6, only one of those was a new item, and the three-course deal for $9.99 used ingredients that were already in the pantry,” Davis said. “We had the steak already, we just hadn’t been selling a lot of it.”

He added that those value offerings were developed with a careful eye toward being profitable, and then Bob Evans successfully encouraged the amount of trade-up it needed. More than half the customers opting for a $6 Farmhouse Deal added a side item for 99 cents, he said, and the brand successfully pushed orders of beverages with the combo meals, also boosting profit margins.

“It’s a matter of mixing all that together to make sure you get value, but also so it’s friendly to the P&L,” Davis said.

Columbus-based Bob Evans Farms owns and operates 565 namesake family-dining restaurants and 145 Mimi’s Café locations.

For the April 27-ended fourth quarter of fiscal 2012, the company’s net income rose 4.8 percent to $23.3 million, or 76 cents per share, compared with $22.3 million, or 61 cents per share, a year earlier.

Revenues dipped 2.9 percent to $406.5 million, compared with $418.7 million a year earlier, reflecting negative same-store sales at Bob Evans and Mimi’s Café, as well as a 9.2-percent decline in the company’s packaged-foods division. Same-store sales fell 0.6 percent at Bob Evans and 3.1 percent at Mimi’s Café.

For the full year, Bob Evans Farms’ net income increased 11.6 percent to $75.5 million, or $2.45 per share, compared with $67.7 million, or $1.79 per share, a year earlier. Net sales fell 1.8 percent to $1.65 billion.

Same-store sales decreased 0.6 percent at Bob Evans and 4 percent at Mimi’s Café for the full fiscal year.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN

Fazoli’s has hired Craig Sherwood as vice president of franchise development for its chain of quick-service Italian restaurants. He replaces James Franks, who left the company earlier this year.

Sherwood most recently led franchise development for Corner Bakery Café and previously oversaw nontraditional franchise growth for Yum! Brands Inc.

“Craig brings to Fazoli’s a wealth of experience and a proven track record with a wide variety of well-known QSR and fast-casual brands,” Carl Howard, president and chief executive, said in a statement. “We are excited to add Craig to an already extremely talented management team.”

The Lexington, Ky.-based brand of more than 220 restaurants has recorded 22 consecutive months of same-store sales increases, including gains in April of 10.4 percent at company-owned stores and 5.1 percent at franchise locations. Howard and other executives have credited the chain’s ongoing efforts to revamp the menu, refresh the store design and add fast-casual service features like food runners and real plateware with driving sales.

“Fazoli’s has reemerged as an exciting brand in an untapped segment,” Sherwood said in a statement. “As a result of the recent improvements and updates, Fazoli’s really fits with what consumers are looking for today: high-quality food, fast service and a contemporary environment, all at a great price.”

He also noted that he would target operators of both traditional and nontraditional restaurant locations to sustain Fazoli’s growth. The brand recently opened its first franchised restaurant in a Par Mar travel center in Fairmont, W.V., with plans to open in two more Par Mar locations this year.

Fazoli’s was founded in 1988 and acquired by Boca Raton, Fla.-based private-equity firm Sun Capital Partners in 2006.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN
 

Ruby Tuesday Inc. founder, chairman, chief executive and president Sandy Beall will step down from his positions at Ruby Tuesday upon completion of a search for his successor, the company said Wednesday.

The company’s board of directors has formed a search committee and intends to retain an executive search firm to find Beall’s replacement. No timetable for the search has been given.

“After 40 years with Ruby Tuesday, I look forward to taking some time off and to pursuing personal ventures,” Beall said in a statement. “We have plans in place to strengthen the Ruby Tuesday brand, grow our emerging brands and have a capital structure that allows our team to execute on our plans to create value for our shareholders.

“It has been my honor and pleasure to lead this great brand and team over the past 40 years, and it has been a wonderful experience in so many ways. I look forward to working with the board to ensure a smooth transition.”

Beall opened the first Ruby Tuesday near the University of Tennessee campus in Knoxville, Tenn., in 1972. He grew the brand to 16 restaurants by 1982, the year Morrison Restaurants Inc. acquired it. Under Beall’s leadership, Ruby Tuesday expanded further still, reaching more than 300 units by the time Morrison spun the brand off in 1996.

Today, Maryville, Tenn.-based Ruby Tuesday operates 740 company-owned units and franchises another 85 locations. In April, the company closed on the acquisition of fast-casual chain Lime Fresh Mexican Grill. It also owns fast-casual concept Marlin & Rays.

During the recession, as many casual dining chains bore the brunt of consumers pulling back on discretionary purchasing, Ruby Tuesday took a different tack than many competitors who became increasingly aggressive with discounts. The chain spent several million dollars upgrading the décor and menu to reposition itself as a more upscale casual chain.

However, the brand at times has struggled to overcome the competitive environment that has persisted in casual dining since the recession, as seen in its most recently completed third quarter of fiscal 2012. For the Feb. 28-ended period, Ruby Tuesday’s net income fell to $4.5 million, compared with $16 million a year earlier. Same-store sales for that quarter decreased 5 percent at company-owned stores.

The company announced plans to close 25 to 27 restaurants in the fourth quarter.

Beall will continue his day-to-day duties with Ruby Tuesday and its board until a successor is named.

“All of us at Ruby Tuesday are extremely grateful to Sandy for his many years of energetic and creative leadership, which has created the company we are today, and we all wish him well,” James Haslam, lead director of the board, said in a statement. “The board looks forward to embarking on the process of identifying an experienced and capable new chief executive to lead Ruby Tuesday and its senior executive team.”

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN

Editor's note: This new and exclusive series to Nation’s Restaurant News provides C-level insights into the sales and traffic data from clients subscribing to Black Box Intelligence, a financial performance benchmarking company. The views expressed here do not necessarily reflect those of Nation’s Restaurant News.

The Restaurant Industry Snapshot is out for May and the news is not very encouraging.

Industry comparable-store sales came in at a 0.4-percent dip and traffic came in at a 3.0-percent decline. This follows April's positive 1.4-percent increase in comparable sales and 2.1-percent decrease in traffic.

So what does this mean for our industry?

Let's start with the long-standing premise that meeting the benchmark was, at a minimum, a good thing since coming out of the Great Recession’s trail of negative months and quarters.

But I would venture to say that every good executive in our member base, which we track for these monthly results, is intent on being above average. When the averages are negative to flat, the achievement of average just isn't good enough -- It will not help rebuild and effectively grow a brand.

At Black Box Intelligence and People Report we are focused on top quartile performance as a way to judge opportunities and best practices. So rather than dwell on the obvious, let's explore some of the uplifting information we can share.

The top quartile of our reporters in same-store sales average a 5.4-percent increase, year-to-date, over the results of the bottom quartile. Traffic results are approximately the same for most months this year.

The spread from best to worst companies is even more dramatic.

The top quartile is made up of brands from casual dining, family dining, upscale casual and fast casual, and while Black Box Intelligence doesn't currently receive or track weekly data from quick service, that segment looks the same from what I see in public reports. I believe this shoots holes in the theory that one segment is blessed and another is cursed.

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Snapshot breakdowns:

• The best region for the quarter and the trailing twelve months is Texas with a sales increase of 1.4 percent and 2.6 percent, respectively.

• When it comes to this month’s Consumer Edge "Willingness to Spend Index," there is some optimism driven by a lower concern for gas prices. But the question remains: Are consumers going to spend their money on dining out, on our industry? I want to note that retail sales came in at a positive 3.6 percent for May.

I'm very much in the camp of seeking the truth about the best performer as a way to understand the most relevant question that can be asked of any business. Is it the industry, economy or my business that is making me perform best, worst or at that not-quite-good-enough average? If I understand this question I can address the gaps in my business, from the most important all the way to the less important, but interesting.

We have to deal with a slower economy and a mature industry, but as the top quartile of our Black Box Intelligence and People Report brands suggest, success is more about the execution of different winning strategies than luck or a rising tide.

______________________

“The Restaurant Industry Snapshot” is a compilation of real sales and traffic results from 117 DMAs from 73 distinct restaurant brands and approximately 12,000 restaurants that are clients of Black Box Intelligence. Currently, data is comprised of  casual dining (44%), upscale/fine-dining (32%) and fast-casual/family-dining (24%). Black Box Intelligence is a sister company to People Report, which tracks 1 million restaurant employees on workforce analytics. The Restaurant Industry Snapshot also includes the “Restaurant Industry Willingness to Spend Index” from Consumer Edge Research, which is a monthly household survey of more than 2,500 consumers. Consumer Edge Research is a marketing partner with Black Box Intelligence and People Report.

____________________

Wallace B. Doolin
Doolin is chairman of Thomas Doolin and Associates LLC, the holding company of People Report, the leader in human capital business intelligence for the restaurant industry and Black Box Intelligence. He is the founder of Black Box Intelligence, a state of the art business intelligence product for the restaurant industry. Additionally, Doolin serves as executive chairman of ESP Systems LLC, a hospitality and healthcare technology company. Other current responsibilities include public company board of director service for Caribou Coffee and Famous Dave’s. Previously, Doolin served as CEO of Carlson Restaurants Worldwide and TGI Friday’s.

Pizza Inn Holdings Inc. said Thursday that chief executive Charles R. Morrison has stepped down and Clinton J. Coleman has been named interim CEO.

The Colony, Texas-based company has launched a search to replace Morrison, who has accepted another job that a spokeswoman said could not yet be revealed.

Coleman, managing director of Pizza Inn’s largest investor, Newcastle Capital Management, has served on Pizza Inn’s board since 2007.

"Charlie has been a great leader for Pizza Inn over the past six years, and we wish him well in the next step of his career," Coleman said in a statement.

Pizza Inn owns and franchises 300 restaurants, including the year-old fast-casual Pie Five Pizza Co. The 53-year-old company has also opened new locations in China.

"We are in a great position for the next phase of business, and we are focused on choosing the right leader to build on our momentum with both concepts," Coleman said.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless
 

U.S. consumers increased their number of visits to restaurants and foodservice outlets by 1 percent in the first three months of 2012, the strongest traffic gain since spring 2008, according to The NPD Group.

The Port Washington, N.Y.-based market research firm also found that American consumers increased spending at restaurants by 3 percent in the first quarter, with more than half of that gain coming from an uptick in industrywide average check.

NPD restaurant analyst Bonnie Riggs attributed much of the quarter’s relative strength in restaurant traffic to an unseasonably warm winter, including the warmest March in decades.

“Thanks to unusually mild weather, winter 2012 was a bright spot for the foodservice industry,” Riggs said. “However, the economic environment will continue to be a challenge for the sector. We forecast a slowdown in traffic growth for the balance of 2012, as the country continues its slow economic recovery.”

The two foodservice sectors that increased guest counts in the first quarter were quick service and fine dining, NPD found. Visits to quick-service chains rose 2 percent during the period, and the subset NPD classifies as major quick-service chains had a 3-percent increase in traffic. Guest counts rose at every daypart for quick service in the first quarter, the research firm found.

Fine-dining restaurants and upscale hotel restaurants generated a 6-percent gain in guest counts.

However, midscale family-dining chains experienced a collective 3-percent decrease in traffic, and casual-dining brands had a 2-percent decline in visits in the first quarter.

Breakfast continued to be the daypart that contributed most to restaurant industry recovery, NPD found, with traffic at the morning meal up 3 percent in the first three months of 2012, compared with a year earlier. Lunch and dinner traffic appeared to hold flat compared with the year-earlier first quarter. The evening snack daypart increased traffic by 1 percent, NPD said.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN
 

Restaurant brands are getting more than just a fresh coat of paint with their latest efforts to refresh and remodel.

In addition to looking modern and relevant, now a necessity in a highly competitive restaurant landscape, chains are repositioning themselves, expanding into new dayparts and sales layers, and motivating their franchisees and staff through large investments for reimaging.

While major public companies like McDonald’s, Wendy’s and Bob Evans have identified remodeling as a major growth strategy, smaller brands also are targeting significant returns on reimaging investments and renewed growth. Schlotzsky’s Deli, Moe’s Southwest Grill and Sizzler spoke with Nation’s Restaurant News about how their recent remodels have begun to pay off.

First: Schlotzsky's Deli

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Schlotzsky’s Deli: Tripling down on new positioning

In order to complete the reimaging of its more than 375 restaurants in 2011, Schlotzsky’s Deli invested $40 million in not only refreshing the chain’s décor but also in adding service elements to solidify its positioning as a fast-casual brand.

“Schlotzsky’s had gone through many years of being in between quick service and fast casual, so we repositioned from our marketing, service, and look and feel,” president Kelly Roddy said. “We changed it to ‘Lotz better,’ with new packaging and colors, new signage, and with food runners bringing food to the table. … We saw a significant improvement in customer counts and sales as soon as we finished the reimages.”

The Austin, Texas-based chain, which is a division of Atlanta-based Focus Brands, steadily grew average unit volumes after accelerating the rebrand process in 2011, going from average sales of about $660,000 in fiscal 2007 to about $780,000 by the end of 2011. Year-to-date, average unit volumes are tracking at about $800,000, Roddy said.

Some units even co-branded with other Focus properties, including Cinnabon and Carvel, to expand into dayparts beyond the typical lunch rush, he added. Units co-branded with a Cinnabon are on pace to pay back the remodel investment within nine months, while other Schlotzsky’s locations that simply updated the décor would reach their return in about 16 months.

“We now have a brand that’s more relevant and seated more strongly in the fast-casual position,” Roddy said. “We’re very much a lunch business, so our goal now is to reach beyond lunchtime. We can take some items we currently sell, such as our pizzas, which we’re starting to promote past 3:00 now, and introduce ourselves as a dinner player.”

The ability to fill the restaurant with customers at all points of the day — including for Cinnabon treats in the morning or at snack time and for Carvel ice cream at night — has increased productivity without adding much incremental labor, according to Roddy. He added that franchisees are bullish on the potential of Schlotzsky’s units tri-branded with Cinnabon and Carvel.

“It has re-energized the franchise base,” he said. “They’re starting to grow now, and people who haven’t built stores in a decade are out there expanding. We’re selling a lot of franchises, but we can be particular about who we let into the brand because it’s in such high demand.”

There currently are about 20 tri-branded locations, and Schlotzsky’s plans to open 35 more in 2012, Roddy said.

Next: Moe's Southwest Grill

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Moe’s Southwest Grill: Growing sales, gaining efficiencies

Atlanta-based Moe’s Southwest Grill, also owned by Focus Brands, has more than 400 fast-casual restaurants, and 20 to 30 of them are usually in some state of remodel at one time, said brand president Paul Damico. Depending on how comprehensive the unit refresh gets — from adding a redesigned salsa bar, a Coca-Cola Freestyle machine, or new furniture — sales can rise as much as 16 percent to 35 percent, he said.

At the original Moe’s location, sales are not only up 20 percent, but more sustainable bottom-line savings also will be possible due to more efficient elements like LED lighting and low-flow water fixtures, according to Damico. He noted that same-store sales year-to-date are up 8.9 percent due to a 5.5-percent increase in traffic, driven in part by a new look and feel at several restaurants.

Another benefit to the Moe’s prototype remodel is the prevention of constant, costly repairs to its high-traffic areas, Damico said. “There was lots of wear and tear on that restaurant, so maintenance costs were really high,” he explained. “We replaced all the soft surfaces and replaced them down to the floor with hard-surface material, so now there aren’t remodeling requirements year over year over year for areas that get beat up.”

Damico added that Moe’s took the opportunity to decrease clutter in the restaurant, especially some of the equipment on the service line, which either got consolidated into new machines or hidden from guests’ view. Speed of service has improved as a result, he added.

The morale of team members and franchisees has also improved. “The new remodel requirements let our franchisees be more sustainable … and get credit for it,” Damico said. “There’s a recognizable change in the crew. They’re more energized and love working in a new environment. And guests recognize that we’re remodeling.”

Next: Sizzler
Previous: Schlotzsky's Deli

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Sizzler: Empowering guests, franchisees with design

Sizzler, the Culver City, Calif.-based chain of nearly 170 family steakhouses, had been growing same-store sales the past few years on the strength of a culinary revamp that trimmed down the size of the menu and emphasized fresh preparation.

But the business has taken off at restaurants that also have completed a new interior and exterior look, with same-store sales rising as much as 20 percent to 30 percent in some refreshed locations, said Kerry Kramp, chief executive of Sizzler USA. Interiors are more open and more brightly lit, with more comfortable seating.

“Our guests were coming to our restaurants but couldn’t tell people because the buildings looked old, and we had silk plants and just weren’t empowering the guest,” Kramp said. “But when you partner new food with a new look and image, and you can brag about the building instead of apologize for it; that’s when you get the full value of the remodel.”

Forty stores have been completely remodeled and another 16 will finish in the next six months, with the remaining 100 or so locations to be completed in the next 12 to 18 months.

The goal is to get average unit volumes up to $2.5 million from a current base of about $2 million, Kramp said. Remodeled stores are averaging weekly sales between 8 percent and 15 percent above the gains at locations that only have the new menu but not the new décor package, he said, making Sizzler’s goal of paying back remodel costs in four years attainable.

The brand plans to build 16 new restaurants in the near term, and its largest franchisee, the BMW Group, just opened a new location with the new look near Sacramento, Calif. Sizzler also is close to announcing a new franchise partner, who would be charged with acquiring a few company-owned Sizzler locations, remodeling them and then building an equal number of new stores.

“We’re really seeing people inside the company who have been franchising with us forever get excited, and now others from outside the company are getting engaged to help us redevelop outside California,” Kramp said. “This is the final piece that we thought would get us kicked off for the next 50 years of Sizzler.”

Previous: Moe's Southwest Grill

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN
 

An array of high profile, high investment nightspots have opened in New York City in recent months. Among them have been Siro’s, a fine dining restaurant and sports bar with investors including New York Yankee Mariano Rivera, plus Kevin Connelly and Kevin Dillon, both stars of the former HBO series Entourage. Also recently opened was Demi Monde, a cocktail lounge by alumni of the critically acclaimed bar Death & Co. that also offers a $130 tasting menu.

Those openings, on top of the $10 million face-lift pop star Jay-Z recently gave to his high-end sports bar, the 40/40 Club, seem to be indicators of a return to pre-recession opulence in New York City.

So is Noir, which opened this week.

A restaurant and lounge in the former space of Nikki Beach — a spot known more for house music and Mojitos than for anything of gastronomic note — Noir has higher culinary aspirations, and owner George Iordanou has brought on Michelin-starred French chef Jean-Yves Schillinger to develop a seasonally inspired, globally influenced menu.

Schillinger operates restaurant JYS in his hometown of Colmar, in the French region of Alsace. There he serves what he calls “la cuisine du monde,” or global cuisine, such as caramelized sweetbreads in carrot jus with lotus root and bok choi; skate with ginger confit, lemon grass foam and warm caper-olive vinaigrette; and his own version of a hamburger that's made with French beef and served with pommes soufflés.

He recently discussed Noir and his general approach to food with Nation’s Restaurant News.

What kind of food will you be preparing at Noir?

I don’t like it when chefs talk about food like it’s something extraordinary. That’s more the part of PR. There are two kinds of food: Good food and bad food. That’s it. Maybe three: very good food.

Can you tell me about the menu?

The basis is French. You cannot do 100-percent French here because the tastes here are not French. For example, we do duck liver with green apple. In France you can’t do that.

We have organic chicken with sesame seeds. We have rib-eye.

What is very well known in Alsace is tarte flambé. It’s like Alsatian pizza, with onions and sometimes bacon, but here we do one with tuna and wasabi and another with Kobe beef and Parmesan.

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If it doesn’t have onion and bacon, what makes it a tarte flambé instead of pizza?

The real tarte flambé has onion, with or without bacon. But it also has a thin crust. You put half fromage blanc, half cream, and egg yolks on that. After you cook it, you put on the tuna, the tomato — whatever you want. It’s simple but very good.

That’s the best kind of food. If I said you have to eat in one restaurant every day for a year and you had a choice between La Grenouille [a traditional French restaurant in New York City] or elBulli [Ferrán Adria’s former temple to molecular gastronomy in Catalonia], you’d choose La Grenouille. And in a restaurant you want 50 to 60 percent [of your guests to be] people who come in every week. You can’t do molecular food so you can be on The New York Times front page one time. Two years later, you’re closed.

Noir is a very nice spot. They put a lot of money inside. I need a good staff in the dining room, a good staff in the kitchen, and I’ll come every six weeks. I’m not going to lie and say I’m going to be here every day.

Who’s going to be cooking there?

Kevin Garcia is the chef. He’s a good guy. Spanish name, but he’s from Alsace.

You first worked in New York in 1997. Has the American palate changed much since then?

The French think they are the best tasters in the world. They think you only eat burgers here, but in the United States your taste is very good. You travel a lot. Twenty years ago, New York and London were nothing for food. You had La Caravelle, Le Cirque, La Côte Basque, La Grenouille, that was it. Now you have so many things. What they do in Japan, what they do in the United States is fantastic.

It’s one reason I like to do restaurants here. I see interesting things and take them home. How do you think [Alain] Ducasse, [Joël] Robuchon, Jean-Georges [Vongerichten] do their own food? They’re traveling, they’re going to the United States, China, Japan, whatever. It’s good for the brain.

How about French tastes — have they changed?

French tastes have changed too. They have to, because if they don’t they won’t be the best anymore. You can’t always do beouf bourguignon and blanquette de veau.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary

Dunkin’ Brands Inc. has appointed Neil Moses, formerly chief financial officer, to the position of chief global strategy officer.

Paul Carbone, formerly vice president for finance and strategy for the company, replaces Moses as chief financial officer. He will continue to report to Moses, who reports directly to Nigel Travis, Dunkin’ Brands’ chief executive and president of Dunkin’ Donuts’ U.S. division.

Canton, Mass.-based Dunkin’ Brands Inc. is the parent company of the Dunkin’ Donuts and Baskin-Robbins quick-service chains.

In a press release, the company said Moses’ new position reflected “his increasing focus on driving the company’s strategic initiatives.”

“These moves recognize Neil’s and Paul’s incredible contributions to the success of Dunkin’ Brands,” Travis said in the release, noting the company’s successful initial public offering last summer.

Moses joined Dunkin’ Brands in November 2010 after serving as executive vice president and chief financial officer of Parametric Technology Corporation, a Massachusetts-based software company.

Carbone, who joined Dunkin’ Brands in 2008, previously was senior vice president and CFO for clothing and accessories company Tween Brands.

More than 70 percent of Dunkin’ Brands’ revenue comes from Dunkin’ Donuts’ domestic operations, which include 10,000 units. But global operations remain important: The second largest part of the company is Baskin-Robbins International, which had 4,267 units at the end of the most recent quarter.

The company also has more than 3,061 international Dunkin’ Donuts units and 2,488 domestic Baskin-Robbins locations. Dunkin’ Donuts currently is on a major U.S. expansion drive, and aims to double its number of domestic units in the next 20 years.

Dunkin’ Brands is almost fully franchised.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary
 

Burger King Corp. has launched a pilot program to test its new mobile payment application in select restaurants in the Salt Lake City, Utah, area.

The BK Mobile Crown Card pilot program allows customers to pay for purchases at participating locations using an application, called BK, on their smartphones. About 50 restaurants in Salt Lake City, Utah and the surrounding metropolitan areas are testing the app.

"At Burger King Corp., we are focused on delivering an excellent restaurant experience for our guests, which includes optimizing our point of sale technology and providing quick and easy payment options," said Kelly Maddern, chief information officer at Burger King Corp., in a statement. "The BK Mobile Crown Card is the perfect fit for our technology and quality-conscious consumers who lead mobile lifestyles, and we are excited about putting this functionality into their hands, getting their feedback and building from there."

The BK application works on smartphones with iOS and Android operating systems.

To start paying with the app, customers must download it and use it to purchase a reloadable BK Mobile Crown Card. Customers can then pay for orders by opening the app on their smartphone and using it to scan a QR code, which is a special bar code placed on counters or at drive thru windows. Purchases are debited directly from the prepaid BK Mobile Crown Card.

Rocco Fabiano, president at Firethorn Mobile, the mobile commerce provider that helped develop the app, said in a statement that the app does not require any investment in new hardware or upgrades at Burger King units.

Customers can download the BK app at no charge from the iTunes App Store or Google Play store.

Miami-based Burger King operates or franchises 12,534 restaurants worldwide.

Contact Olivia LaBarre at olivia.labarre@penton.com.
Follow her on Twitter: @Olivia_NRN
 

The Wendy’s Co. has completed the purchase of 30 franchised restaurants in the Austin, Texas, market from longtime operators Dave and Jason Near.

According to an 8-K filing with the Securities and Exchange Commission, Wendy’s paid $19.8 million in cash to Pisces Foods LP, Near Holdings LP, and Dave and Jason Near for the business. The Near brothers will retain ownership of 23 parcels of real estate and lease the properties back to Wendy’s.

In an email to Nation’s Restaurant News, Wendy’s spokesman Bob Bertini said the acquisition fits into Wendy’s long-term growth strategy of acquiring franchised restaurants in certain markets and refranchising corporate units in others.

“We intend, however, to operate the Austin market as a company market,” Bertini wrote. “Austin is a strong market for Wendy’s, and this gives us an opportunity to test new products and other major new initiatives.”

Dave and Jason Near have operated Wendy’s restaurants in the Austin area since 1995 and are the sons of Jim Near, who was president, chief executive and chairman of Wendy’s in the 1980s and 1990s. Jim Near passed away in 1996, and the company honored his memory by establishing the Jim Near Legacy Award.

Dave Near was elected president of the Wendy’s Franchise Advisory Council in 2005 and was appointed chief operating officer of Wendy’s International Inc. in 2006, a role in which he served until 2008.

Dublin, Ohio-based Wendy’s operates or franchises more than 6,500 restaurants in the United States and 27 foreign markets.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN