The Restaurant Finance Monitor`s Top 200

The Restaurant Finance Monitor’s
Top 200 Restaurant
Franchisees
Sponsors:
Top 200 Restaurant Franchisees
At a time when the restaurant
industry as a whole is
struggling, here are 200 #
examples of multi-unit
franchisees running successful 1
companies. Research for this
special feature was compiled 2
by our sister publication, the
Restaurant Finance Monitor,
3
and was first printed in its June
issue.
The top 25
Company
Revenue
Major Concepts
NPC International, Inc.
$689,689,000 1098 Pizza Hut
Overland Park, KS
BF Companies/ERJ Dining
503,000,000
Louisville, KY
161 Wendy’s
118 Chili’s
Apple American Group LLC
439,773,000
189 Applebee’s
San Francisco, CA
Senior Executives
James K. Schwartz - CEO
Troy D. Cook - Exec. VP/CFO
Junior Bridgeman - President
Troy Hanke - CFO
Gregory G. Flynn - CEO
Lorin M. Cortina - CFO & EVP
4
Harman Management Corp.
416,362,000
Los Altos, CA
5
Carrols Restaurant Group, Inc.
391,549,000
315 Burger King
Syracuse, NY
6
Boddie-Noell Enterprises
364,367,000
Rocky Mount, NC
341 Hardee’s
10 Moe’s SW Grill
So many units,
so little time
7
Strategic Restaurants
341,918,500
Acquisition Corp
San Ramon, CA
264 Burger King
16 TGI Friday’s
Jerry Comstock - CEO
Steven Grossman - CFO
8
Covelli Enterprises
325,000,000
Warren, OH
145 Panera Bread
3 O’Charleys
Sam Covelli - President
Bob Fiorino - CFO
O
9
Briad Group (The)
321,170,000
Livingston, NJ
73 TGI Friday’s
43 Wendy’s
10
Pepper Dining, Inc.
300,000,000
100 Chili’s
Charlotte, NC
John McGlone - CEO
Gary Sachs - CFO
11
Kazi Management VI, LLC
297,000,000
Studio City, CA
235 KFC
22 Burger King
Zubair Kazi - CEO
Brian Burr - President
12
ADF Companies
289,815,000
Fairfield, NJ
300 Pizza Hut
9 Panera Bread
Don Harty - CEO
Michael Lubitz - CFO
13
Pilot Travel Center LLC
269,474,000
Knoxville, TN
148 Subway
47 Wendy’s
14
Doherty Enterprises, Inc.
264,800,000
Allendale, NJ
15
AmRest, LLC
256,500,000
104 Applebee’s
Atlanta, GA
Mike Muldoon - CEO
Trish Farley - CFO
16
Heartland Food Corp.
251,700,000
221 Burger King
Downers Grove, IL
Steve Wiborg - CEO
Joel Aaseby - CFO
17
United States Beef Corp.
246,467,000
Tulsa, OK
260 Arby’s
5 Taco Bueno
Jeffery Davis - CEO
Brett Pratt - CFO
18
Quality Dining Inc.
245,574,000
Mishawaka, IN
117 Burger King
45 Chili’s
Daniel B Fitzpatrick - CEO
John C. Firth - President
Top of
the Heap
nce again, Franchise Times
presents the Monitor Top 200,
ranking the largest multi-unit
franchisees based on their 2008 revenues.
The Monitor has tracked the revenue and unit performance of the
largest multi-unit restaurant franchisees in the United States for more
than 16 years. We started out by
tracking the Top 100 franchisees, and
then in the third year became really
ambitious and made it the Top 200­—
it didn’t seem right to stop at No. 100
when there were so many significant
companies from 101 on up.
Over the past 10 years, the list has
transformed from one dominated
primarily by QSR chains to one that
is almost equally weighted between
QSR and casual dining.
According to our research, there
were 105 restaurant operators in the
Top 200 who operated casual dining
restaurants in 2008, compared with
78 casual dining companies in 1998.
The overall size of the Top 200
companies in terms of operating units
rose only slightly between 1998 and
2008. There were 14,632 units operMonitor continued on 43
42
August 2009
139 KFC
119 A&W/KFC
59 Applebee’s
22 Panera Bread
James D. Olson - CEO
James Jackson - CFO
Alan Vituli - CEO
Paul Flanders - CFO
William L. Boddie - President
W. Craig Worthy - Sr. VP/CFO
Brad Honigfeld - CEO
David Cahill - CFO
Jimmy Haslam - President
Mitch Steenrod - CFO
Edward Doherty - CEO
Jerry Marcopoulos - CFO
Restaurant Franchisees Top 200
Monitor continued from 42
The top 25
#
Company
Revenue
Major Concepts
19
Thomas and King, Inc.
240,999,000
Lexington, KY
90 Applebee’s
7 Carino’s
Mike Scanlon - President
Beth Waldrep - CAO
20
JRN, Inc.
225,395,000
Columbia, TN
180 KFC
14 KFC/Taco Bell
John R. Neal - President
Dick Moore - CFO
21
DavCo Restaurants, Inc.
211,246,000
156 Wendy’s
Crofton, MD
22
Interfoods of America, Inc.
205,000,000
Miami, FL
23
B & B Consultants
200,000,000
155 Sonic Drive Ins
Las Cruces, NM
Barbara Stamner - President
Leslie Berriman - VP, CFO
24
JIB Management
190,000,000
Fremont, CA
119 Jack in the Box
16 Denny’s
Anil Yadav - President & CEO
Tejal Chocksi - Controller
25
Sun Holdings, LLC
190,000,000
La Jolla, CA
75 Popeyes
44 Golden Corral
Guillermo Perales - President
Ted Croft - CFO
165 Popeyes
19 Burger King
Senior Executives
Dave Norman - President
Charles McGuire - VP Finance
Robert S. Berg - CEO
Steve M. Wemple - President/COO
26-200
#
Company
Major Concepts
Senior Executives
$150 MILLION TO $190 MILLION
26
T-Bird Restaurant Group
63 Outback Steakhouse
La Jolla, CA
Valenti Management
Tampa, FL
27
117 Wendy’s
17 Chili’s
28
Kaizen Group Inc.
Beaverton, OR
29
Cedar Enterprises, Inc.
132 Wendy’s
Columbus, OH
30
Border Foods Companies
Golden Valley, MN
31
Tacala, LLC
Birmingham, AL
32
T.L. Cannon Management Corp.
Ponte Vedra Beach, FL
61 Applebee’s
1 Urban Flats
33
Rose Group (The)
Newtown, PA
58 Applebee’s
4 Corner Bakery
73 Burger King
53 Denny’s
91 Taco Bell
76 Pizza Hut
164 Taco Bell
5 Taco Bell/LJS
Thomas Shannon - President
Mike Christensen - CFO
Darrell Valenti - CEO
Steve Nesbitt - CFO & VP
Syed Ahmad - President
Paul Hillman - CFO
James Evans - CEO
Shawn Hiller - CFO
Lee J. Engler - CEO
Barry Zelickson - CFO
Don Ghareeb - CEO
Joey Pierson - CFO
Matthew J. Fairbairn - CEO
Ritch Mabry - VP/CFO
Harry T. Rose - CEO
Christopher Tobia - VP & CFO
ated by franchisees in 1998 compared
to 16,489 units in 2008, primarily
because more multi-unit operators
developed or acquired casual dining
restaurants such as Applebee’s, T.G.I.
Friday’s and Chili’s.
And while casual dining has suffered in the last two years, there are
still 1,800 more units on the list this
year than 10 years ago. There were
4,020 casual dining restaurants
operated by the Top 200 franchise
companies in 1998, which represented
27 percent of the total units operated
by the group. Those numbers jumped
to 5,896 casual dining restaurants in
2008, or 36 percent of the total units
operated by the Top 200.
In terms of the Applebee’s system alone, there were a total of 29
Applebee’s franchisees that made this
year’s Top 200 ranking. They operated 1,374 Applebee’s restaurants in
2008 compared with 14 Applebee’s
franchisees operating 427 units in
1998. The growth in the number of
these large, multi-unit franchisees
over a 10-year period was significant
to the growth of the Applebee’s system. No other franchise system came
even close. The 29 Applebee’s franchisees on this year’s Top 200 ranking
operate more than 70 percent of the
entire Applebee’s system, the largest
franchise concentration of any of the
Top 200 companies.
Steady Growth
Over a 10-year period, the revenue of the Top 200 franchisees has
grown steadily to $21.3 billion, up
from $13.6 billion in 1998. Not surprisingly, considering the economic
downturn and the weighting of casual
dining units in the ranking, the revenue of the Top 200 companies took
a hit in 2008, declining to $21.3 billion in revenues from $21.5 billion in
2007.
Even the number of units declined
year to year as franchisees culled their
lowest performing locations. In total,
the number of units operated by the
Top 200 fell to 16,489 units, down 2.5
percent from 16,915 units in 2007.
Diversification has been important
to the Top 200 franchise companies.
In 2008, there were 106 Top 200
companies that operated a second
franchised concept, compared to 76
restaurant companies that operated
Monitor continued on 53
August 2009
43
Top 200 Restaurant Franchisees
How Three
Monitor 200
Companies
Continue
to Thrive
W
#
Company
34
Applesauce, Inc./Apple Illinois LLC
81 Applebee’s
Crestview Hills, KY
Western Reserve Restaurant Mgmt
112 Wendy’s
Rochester, NY
35
Boddie-Noell
Enterprises
Cutting costs and phone lines
while increasing marketing
When
the
recession hit,
Boddie-Noell
Enterprises could
have just waited
for their customers. A fter all, it
Mike Boddie
does operate many
Ha rdee’s in the
Carolinas and Virginia. And consumers continue to “trade down” to
quick-service restaurants.
Instead, the company increased its
marketing—perfect timing. A difficulty in the media markets has made
ad rates rather attractive. “We’ve got
a pretty aggressive marketing plan to
generate traffic,” said Jerry Allsbrook,
the company’s chief marketing officer.
“It’s all about getting people to come to
your restaurant.”
Boddie continued on 45
44
August 2009
Senior Executives
W. Curtis Smith - President
Jerome D. Kreger - CFO & EVP
Richard C. Fox - President
Robert L. Cottier - CFO
$125 MILLION TO $150 MILLION
36
Friendly Franchisees Corporation
La Palma, CA
66 Carl’s Jr.
18 Denny’s
Apple Gold Group
Raleigh, NC
71 Applebee’s
6 Burger King
Michael D. Olander - President
Elizabeth McGee - CFO
Caspers Company
51 McDonald’s
Tampa, FL
Blake Casper - CEO
Chuck Peterson, Jr. - CFO
37
e singled out three companies
from our illustrious group of
Monitor 200 “winners” and
38
asked them what they were doing differently these past couple of quarters
from previous years. From increasing
their marketing budgets to retraining 39
employees in the finer points of customer service, these companies will
show you what it takes to be at the 40
top of the food chain.
—profiles by Jonathan Maze
Major Concepts
Restaurant Management Co.
Wichita, KS
Wisconsin Hospitality Group
Wauwatosa, WI
130 Pizza Hut
17 Long John Silver
82 Pizza Hut
41 Applebee’s
41
Metro Corral Partners, Inc.
26 Golden Corral
Orlando, FL
42
Foodservice Management Co.
Roseville, CA
71 Jack in the Box
5 TGI Friday’s
43
Jan Companies
Cranston, RI
96 Burger King
3 Popeyes
44
Carlisle Corporation
96 Wendy’s
Memphis, TN
45
Quality Restaurant Concepts
Birmingham, AL
55 Applebee’s
3 Up the Creek
Harshad Dharod - President
Anthony Carrick - CFO
Hal W. McCoy II - CEO
Terry Freund - CFO
Mark Dillon - CEO & President
Jason Westhoff - CFO
Eric Holm - CEO
Erich Booth - CFO
Abe Alizadeh - President
Bal Pal - Vice President
Nicholas Janikies - President
Cynthia Janikies-Simonson -COO
Gene Carlisle - Chairman & CEO
Paul Volpe - VP of Finance
Fred Gustin - President
Charles Galloway - CFO
$100 MILLION TO $125 MILLION
46
BR Associates, Inc.
Jasper, IN
Casual Restaurant Concepts, Inc.
47 Applebee’s
Tampa, FL
47
103 Long John Silver
31 Wendy’s
Robert Ruckriegel - CEO
Jason Kelly - CFO
Franklin Carson - President
Annette Kirk - CFO
48
Carolina Restaurant Group
85 Wendy’s
Charlotte, NC
49
Wendy’s of Colorado Springs
Colorado Springs, CO
74 Wendy’s
10 Golden Corral
50
LeVecke & Company
Guadalupe, AZ
60 Carl’s Jr.
60 Hardee’s
Jason LeVecke - President
Annette Atkisson - CFO
Synned
Dallas, TX
37 Applebee’s
18 Burger King
Sunil Dharod - CEO
John Fox - Vice President
51
Quint Graham - President
Gary Miller - CFO
Richard W. Holland - President
Chris Rushing - Controller
Restaurant Franchisees Top 200
#
Company
Major Concepts
52
DL Rogers Corp.
86 Sonic Drive Ins
North Richland Hills, TX
53
Scarbrough Management Corp.
San Ramon, CA
66 Burger King
5 On the Border
Senior Executives
James Junkin - CEO
Mark Berger - CFO/Controller
William L. Scarbrough - President
Kelly Scarbrough - President
54
Pennant Foods Corp.
92 Wendy’s
Knoxville, TN
Apple-Metro, Inc.
Harrison, NY
28 Applebee’s
1 Chevys
Zane Tankel - Chairman & CEO
Frank P. Venice - CFO & EVP
56
Pizza Properties, Ltd.
El Paso, TX
39 Peter Piper Pizza
34 Burger King
John T. Hjalmquist - President
Polly Vaughn - CFO
Pacific Island Restaurants, Inc.
Honolulu, HI
50 Pizza Hut
40 Taco Bell
Greg Dollarhyde - Chairman
Kevin Kurihara, VP/CFO
58
Palo Alto Inc.
Denver, CO
65 Taco Bell
40 Pizza Hut
Robert Alvarado - CEO
David M. Godfrey - CFO
59
Muy Brands, LLC
San Antonio, TX
47 Pizza Hut
30 Long John Silver
60
Strang Corporation
Cleveland, OH
29 Panera Bread
27 Applebee’s
Donald W. Strang III - President
Gerald M. Stoffl - CFO
Sizzling Platter, LLC
Murray, UT
62 Little Caesar’s
22 Sizzler
Ted Morton - President
Steve Pack - Controller
55
57
61
Mike Cardinal - CEO
Tina Hertzal - CFO
Jim Bodenstedt - President
John Haynie - CFO
62
Duke & King Acquisition Corp
95 Burger King
Burnsville, MN
63
Concord Hospitality, Inc.
Lincoln, NE
64
Frisch’s Restaurants
35 Golden Corral
Cincinnati, OH
65
K-MAC Enterprises
Ft. Smith, AR
66
RPM Pizza
142 Domino’s Pizza
Gulfport, MS
Bistro Group (The)
Cincinnati, OH 31 TGI Friday’s
5 McAlister’s
68
Luihn Food Systems, Inc.
Morrisville, NC
33 KFC
24 Taco Bell
69
ACG Texas, LP
55 IHOP
Plano, TX
70
By the Rockies
Westminster, CO
80 Hardee’s
35 Carl’s
Steve Rosenfeld - CEO
John Miller - CFO
71
Tar Heel Capital 75 Wendy’s
Boone, NC
James C. Furman - CEO
Melissa Collins - CFO
67
42 Applebee’s
5 Village Inn
127 Taco Bell
24 KFC/Taco Bell
Rodger Head - President
Becky Moldenhauer - CFO
Larry Bird - CEO
John Gabel - CFO
Craig Maier - CEO
Donald Walker - VP/CFO
Sam Fiori - President
Jennifer Kizer - CFO
Glenn A. Mueller - President
Richard P. Mueller, III - COO
James Rieger - President
Victoria Chester - CFO
Al Luihn - CEO
Fay Clayton - Controller
Joseph E. Langteau - CEO
Douglas Shaw - CFO
Boddie continued from 44
Boddie-Noell operates 342 Hardee’s,
plus a handful of other restaurants.
Like many franchisees, the economic
downturn has forced it to return to
basics—it’s refocused on operations
and limited new development.
Some of the efforts have been creative, such as eliminating a phone line
from every unit—a big savings in a
300-unit company. Company executives have also reduced energy expenses
and added an efficiency task force. “We
just try to be smart with spending,”
said Mike Boddie, president of restaurant operations.
The company was founded in
1962 when Carleton Noell and his
two nephews, Mayo Boddie (Mike’s
father) and Nick Boddie opened their
first Hardee’s in Fayetteville, North
Carolina. They ran across the concept
after Wilbur Hardee opened a restaurant two blocks from a gas station
Mayo Boddie owned.
As the concept took off, the company grew steadily to 45 units by 1970.
Boddie-Noell owned the first Hardee’s
to serve biscuits for breakfast—a program adopted concept-wide in 1977.
Boddie-Noell later started its own land
development company and expanded
into other concepts.
But Hardee’s is by far its biggest
brand. As one of the concept’s first
franchisees, Boddie-Noell’s stores
have followed the brand’s ups and
downs—including its sale to CKE
and significant changes to the brand’s
product lineup.
Some of the company’s recent success has been through efforts to broaden
its customer base. Mike Boddie noted
that the “Little Thickburger,” a smaller,
$1.99 version of its sizable signature
burger, has brought in value customers and lighter eaters.
“A lot of customers still buy
Thickburgers, but you have a segment
out there looking for value,” Boddie
said. “And what we’ve found is that it
doesn’t have to be $1.”
In North Carolina, home of most of
the company’s sites, unemployment has
been among the highest in the country.
“I don’t think anybody has seen anything like this,” he said. “It’s very tough,
but we’ve been fortunate because people have traded down to fast food. As
bad as the economy has got, we’ve been
able to sustain sales.”
August 2009
45
Top 200 Restaurant Franchisees
RPM Pizza
Pizza franchisee has survived
a series of events which had
a dominoes effect on profits
I
n its 28 years as a Domino’s Pizza
operator, Mississippi-based RPM
Pizza is in the midst of surviving its
third recession. In addition, the company has dealt with the retirement of
one of its founders, Richard Mueller,
whose initials comprise the company’s name. Along with its franchisor,
it’s faced mounting competition in
the pizza segment and plenty of ups
and downs. Oh, and then there was
Hurricane Katrina.
Yet RPM’s place on the Monitor
200 has never really been in danger.
“I’ve learned that in the pizza business,
you don’t ever get too happy, and you
don’t ever get too upset,” said Glenn
Mueller, company president who
started the franchise with his brother
Richard in 1981.
Richard Mueller started his career
at Domino’s as a delivery driver for
founder Tom Monaghan, and later
became one of the company’s first
franchisees. He built a 60-unit franchise in Ohio in the 1970s before
Monaghan lured him to help with the
corporate side of the operation.
In 1981, Richard Mueller decided
to return to franchising and began
opening units with his brother, who
has a financial and accounting background. “We started back when times
were a lot simpler,” Glenn said. “We
were the only delivery pizza place.
Pizza Hut was the only sit-down pizza
place. Little Caesar’s was the only pickup pizza place.”
Buoyed by that simplicity and
Domino’s’ rapid rise, the brothers’
company had a good decade in the
1980s. At its peak, RPM had 370 units,
including stores in Canada, New York,
Chicago and Detroit in addition to its
southern territory around Mississippi,
Louisiana and Alabama.
That would change in the early
‘90s. The recession—along with the
growing complexity and competitiveness of the pizza business—put a dent
in the company’s sales. RPM tossed
its northern restaurants and began
concentrating on its southern-state
RPM continued on 47
46
August 2009
#
Company
Major Concepts
Senior Executives
$90 MILLION TO $100 MILLION
72
Pacific Bells Inc
Vancouver, WA
79 Taco Bell
1 Buffalo Wild Wings
73
Southern Multifoods, Inc.
Jacksonville, TX
52 Taco Bell
17 Taco Bell/KFC
74
BurgerBusters, Inc.
Virginia Beach, VA
80 Taco Bell
10 Pizza Hut
75
MRCO, LLC
Brentwood, TN
68 Taco Bell
17 Yum! Multi
76
QK, Inc.
Holbrook, AZ
64 Denny’s
5 Del Taco
77
Morgan’s Foods, Inc.
Cleveland, OH
72 KFC
13 YUM! Multi
Leonard Stein-Sapir - CEO
Kenneth L. Hignett - CFO
78
PJ United
115 Papa John’s
Birmingham, AL
Douglas Stephens - President
Brad Leonard - CFO
79
AppleCreek Management Co., Inc.
40 Applebee’s
Duluth, GA
William Palmer - CEO
Jerry Killinger - CFO/VP
Tom Cook - President
Mary Bottoms - CFO
Larry Durrett - President
Robert Cudd - CFO
Tassos Paphites - CEO
David Lajoie - CFO
Farzin Ferdowsi - President
Michael Shahsavari - Sr. VP/CFO
Robbie Qualls - CEO
Irma Carpenter - CFO
$80 MILLION TO $90 MILLION
80
CLP Corporation
43 McDonald’s
Homewood, AL
Daland Corporation
93 Pizza Hut
Wichita, KS
Willam J. Walsh Jr. - President
Alan Seiwert - CFO
82
Kessler Group Inc
Rochester, NY
Laurence Kessler - President
Dennis Kessler - Executive VP
83
Paradigm Investment Group
87 Hardee’s
Rancho Sante Fe, CA
Don Wollan - Chairman
Brian Kelley - Managing Owner
84
Austaco, Inc.
74 Taco Bell
Austin, TX
Dirk Dozier - CEO/President
Dave Polis - CFO
85
W.K.S. Restaurant Corp.
Lakewood, CA
86
Stanton & Assoc., Inc.
62 Wendy’s
Jackson, MI
87
Twins Group (The)
Bannockburn, IL
61 Pizza Hut
34 Taco Bell
Nick Kallergis - President
John Kallergis - CEO
88
Southern Bells, Inc.
Indianapolis, IN
60 Taco Bell
5 KFC
Craig Fenneman - President
Doug Shaffer - CFO
81
47 Friendly’s
21 Burger King
54 El Pollo Loco
4 Denny’s
James Black - President
Richard Wood - CFO
Roland C. Spongberg - President
Mathew McGuinness - CFO
Mark Behm - Co-owner
Caroline Lowe - CFO
Restaurant Franchisees Top 200
#
Company
Major Concepts
Senior Executives
$70 MILLION TO $80 MILLION
89
V&J Holding Inc.
Milwaukee, WI
64 Pizza Hut
38 Burger King
Valerie Daniels-Carter - President
John Daniels - Vice President
90
Gala Corporation
Los Alamitos, CA
19 Applebee’s
5 Famous Dave’s
Anand D. Gala - President
Cyrus Commissariat - VP Finance
91
Austin Sonic Inc
62 Sonic Drive Ins
Austin, TX
Jerry Conway - President
Vic Lacy - CFO
92
Goldco, LLC
61 Burger King
Dothan, AL
93
Team Schostak Family Restaurants
Livonia, MI
59 Burger King
3 Del Taco
Frederick B. Beilstein IV - CEO
Bennie Arbour - CFO
Mark S. Schostak - CEO
Mike Devlin - VP of Finance
94
Patterson & Associates Inc.
52 Wendy’s
Louisville, KY
95
Both Inc
24 Golden Corral
Virginia Beach, VA 96
AB Enterprises
Redding, CA
14 Burger King
12 Applebee’s
Joseph Wong - CEO
Bob Kirshner - CFO
97
Mancha Development Company
Corona, CA
36 Burger King
19 Denny’s
Vince Eupierre - CEO
Bob Gonda - CFO
98
Apex Rest. Management Inc.
92 LJS/A&W
Pleasanton, CA
Tabbasum Mumtaz - CEO
Ajay Dhillon - CFO
99
Benton Properties, Inc.
64 Sonic
Rogers, AR
Pete Esch - President/CEO
Ron Babcock - CFO
100
K Investments of Ohio
Bloomsberg, PA
44 Perkins
2 Quaker Steak & Lube
101
Apple Core Enterprises, Inc.
Minot, ND
23 Applebee’s
2 Village Inn
102
High Plains Pizza
76 Pizza Hut
Liberal, KS
103
McEssy Investment Co.
40 McDonald’s
Lake Forest, IL
104
Falcon Holdings, LLC
81 Church’s Chicken
Oak Brook, IL
105
R & L Foods, Inc.
San Antonio, TX
29 Pizza Hut
9 Taco Bell
James Patterson - President
Mark Wheeler - Vice President
Houston Odom - President
Gary Carter - CFO
John Klingerman - President
Russ Berner - Vice President
Myron Thompson - CEO
Robert J. Lamont - CFO
William Colvin - President
Amy Hinkle - CFO/Controller
Ernie Masucci - President/COO
John Hall - CFO
Aslam Khan - CEO
Giovanna Koning - CFO
Richard Breakie - President
John Haynie - CFO
$60 MILLION TO $70 MILLION
106
Ansara Restaurant Group, Inc.
Farmington Hills, MI
21 Red Robin
5 Big Boy
RPM continued from 46
business. In 1995, sales began growing
again, Glenn Mueller said. By 2003,
Richard Mueller felt confident enough
to take an early retirement at 55.
Then Hurricane Katrina hit. Eightysix of the company’s restaurants closed,
16 were wiped out. RPM has since
rebuilt all but four of the stores. The
remaining locations don’t have the
population yet to support a Domino’s
Pizza.
A subsequent hurric a ne hit
Domino’s with struggles at the corporate level and exploding commodity
costs in early 2008. Richard Mueller
came back to work at the company
full time. The economy forced some
changes, including staff cuts and
tighter budgets. RPM looked at the
number of supervisors it employs,
areas “the customer does not see,”
Glenn Mueller said.
Yet RPM also increased employee
training to give customers a better
experience—including reduced delivery times. Mueller said the end of the
30-minute guarantee slowed the drive
to deliver pizzas quickly. After the
training and improved focus, he said,
“we’re running the best service times”
since the guarantee ended.
It wasn’t just the economy, however.
Glenn Mueller said the pizza business went through some fundamental
changes. “People are still eating pizza,
but their buying habits have changed,”
he said. “The niches are not welldefined, the way it was in the 80s.” In
recent months, Mueller’s franchisor
has made significant changes in its
own business model.
The company now makes sandwiches and bread bowls, giving it a
significant lunch business and making it a more direct competitor with
Subway, rather than just pizza chains.
Headquarters is firming up operations, checking stores for standards
and performing internal audits.
Richard Mueller said RPM has eagerly
followed these efforts. “We want to
always follow this lead,” he said before
acknowledging that it hasn’t always
been the case—previous management
wasn’t as strong. “We like following
their lead to date.”
Victor Ansara - President
Lewis Ansara - Vice President
August 2009
47
Top 200 Restaurant Franchisees
Doherty
Enterprises
Timing is everything, but
experience pays the bills
It w a s n’t a n
epiphany, but in late
2007 Ed Doherty
sensed something
going on. The restaurant business
was softening. The
sub-prime lending
Ed Doherty
market was in the
midst of its collapse. And banks were
tightening their commercial lending.
“I knew the credit markets were going
to fall apart,” he said. “I didn’t want
to wake up one day and find out that
credit was all dried up.”
Doherty’s prediction may have been
a few months early—“I thought it was
going to happen in December 2007,”
he said—but his timing was perfect.
That month, fearing the inevitable collapse, Doherty refinanced the debt
for his New Jersey-based franchisee
company, Doherty Enterprises, and
opened a $30 million line of credit.
So as other companies have
retrenched, cut costs and searched for
new ways to lure customers, Doherty
has used his line of credit to open
stores, adding to the 57 Applebee’s,
22 Panera Breads, three Chevy’s and
one El Pollo Loco he currently operates. This year Doherty Enterprises
will open between 10 and 11 restaurants, and the company plans to open
units into 2010.
Doherty Enterprises is growing at
a time when few companies are. By
opening restaurants now, Doherty is
able to take advantage of lower rents
and negotiate better leases, which
improves his stores’ unit economics.
It’s also a boon for the company’s crew members and management,
who are staying put. “It helps the
organization,” Doherty said. “When
everybody is closing restaurants, stopping expansion and letting managers
go, we continue to grow. We continue
to participate in 401(k)s, giving raises.
So people feel good about the organization.”
Doherty’s experience enabled him
Doherty continued on 49
48
August 2009
#
Company
Major Concepts
107
J&B Restaurant Partners
Ronkonkoma, NY
108
Emerald Foods, Inc.
60 Wendy’s
Houston, TX
109
RGT Management, Inc.
Memphis, TN
110
Platinum Corral, LLC
22 Golden Corral
Jacksonville, NC
111
Carisch, Inc.
73 Arby’s
Wayzata, MN
112
Desert de Oro Foods, Inc.
72 Taco Bell
Kingman, AZ
113
Apple J, LP
32 Applebee’s
Greenville SC
114
Trigo Hospitality
St. Joseph, MI
31 Pizza Hut
20 Panera Bread
Joyce L. Lunsford - President
Greg Molter - Managing Partner
115
RoHoHo, Inc.
Charleston, SC
55 Papa John’s
2 Jersey Mike’s
Philip L Horn, Jr. - President
Peggy Hunt - CFO
116
Dolan Foster Enterprises, LLC
63 Taco Bell
Pleasanton, CA
Paul Luce - CFO
Randy Rodrigues - Owner
117
First Sun Management Corp.
51 Wendy’s
Clemson, SC
Joe Turner - CEO
Clark Mizell - CFO
118
Al Hut, Inc.
98 Pizza Hut
Independence, OH
119
Altes LLC/Setla LLC
Boca Raton, FL
120
Fowler Foods Inc.
Jonesboro, AR
121
Koning Restaurants International
62 Pizza Hut
Miami, FL
122
West Quality Food Service Inc
Laurel, MS
123
LDF Food Group, Inc. 42 Wendy’s
Wichita, KS
124
Restaurant Management Group
Concord, NC
45 Hardee’s
18 Little Caesars
125
Hospitality Restaurant Group, Inc.
Traverse City, MI
30 Taco Bell
24 Pizza Hut
126
William Tell, Inc.
Salt Lake City, UT
18 Applebee’s
8 Famous Dave’s
32 Friendly’s
10 Taco Bell
55 Taco Bell
13 LJS/A&W
102 Rally’s
6 Checker’s
33 KFC
20 KFC/Taco Bell
52 KFC
20 YUM! Multi
Senior Executives
Joe Vitrano - President
Jerry Snearly - CFO
Donald L. Feinstein - Chairman
Mark J. George - President
Sean Tuohy - CEO
Michael Roe - COO
Billy Sewell - President
Kirby Mitchels - CFO/Controller
George & Gerald Carisch - Owner
Fred Stauber - CEO
Krystal Burge - President
Mark Peterson - Vice President
Art Everson - CEO
Coye Mann - CFO
Charles D. Hudson - CEO
Christopher M. Flocken - CFO
Robert Alrod - CEO
Mitch Alrod - Managing Director
Chris Fowler - President
Jamie King - Controller
Al Salas - President
Omer Sezer - CFO
Richard West - President
David Childress - CFO
Larry Fleming - Chairman
Don Haynes - President
Jack Mangan - CEO
Craig McClure - CFO
Ken Underwood - CEO
Diane Burns - CFO
John B. Prince - President
Restaurant Franchisees Top 200
#
Company
Major Concepts
Senior Executives
$50 MILLION TO $60 MILLION
127
Apple Corps, L.P.
24 Applebee’s
Witchita, KS
David Rolph - CEO
Micah Derr - CFO/Controller
128
Bailey Company (The) Golden, CO
Geoffrey Bailey - President
William D. Whitehurst - CFO
129
Hallrich Inc.
81 Pizza Hut
Kent, OH
130
Meritage Hospitality Group
Grand Rapids, MI
131
Bari Management
51 Burger King
Glendale, CA
132
Cotti Foods Corp
Rancho Santa Margarita, CA
133
Twoton Inc.
39 Burger King
Lancaster, PA
134
Lunan Corp.
Chicago, IL
62 Arby’s
7 Burrito Beach
Gregory Schulson - President
Steve Ganek - Controller
135
B & G Food Enterprises, LLC
Morgan City, LA
36 Taco Bell
6 Taco Bell/KFC
Gregory Hamer, Sr. - President
Ellen Pennison - CFO
136
C.J.K. & Associates
Lodi, CA
19 Applebee’s
10 Burger King
137
DRM, Inc.
71 Arby’s
Omaha, NE
138
Metz Enterprises
Dallas, PA
139
Bros. Management Inc.
27 McDonald’s
Knoxville, TN
Tom Cochran - President
Gary Magee - CFO
140
Mirabile Investment Corp.
Memphis, TN
42 Burger King
4 Popeye’s
Joseph W. Mirabile - CEO
Robert Cook - President
141
U.S. Restaurants, Inc.
36 Burger King
Blue Bell, PA
Steven M. Lewis - President
Michael J. Kadelski - CFO
142
OCAT, Inc.
Modesto, CA
37 Taco Bell
1 YUM! Multi
David Olson - President
Joyce Machado - CFO
143
Whit-Mart, Inc.
27 Applebee’s
Charleston, SC
Gary P. Whitman - CEO
Michael Wiser - CFO
144
Wesfam Restaurants, Inc.
27 Burger King
Huntsville, AL
Rich Wyckoff - President
Tim Mitchell - CFO
145
Doro, Inc.
Eau Claire, WI
58 Arby’s
2 Good Times
49 Wendy’s
4 O’Charley’s
55 Taco Bell
5 Pizza Hut
12 TGI Friday’s
3 Krispy Kreme
55 Hardee’s
4 Taco John’s
Anthony Szambecki - CEO
Dennis R. Abbuhl, Jr. - CFO
Robert E. Schermer - CEO
Gary Rose - COO & CFO
Ralph Cimmarusti - President
Howard Schwartz - CFO
Peter Capriotti - President & CFO
Steve Dees - COO
William L. Harrington - CEO
Gerald E. Mitchell, Jr. - President
David Knox - CEO
Cheryl Maveety - CFO
Matt Johnson - President & CEO
Mike Morgan - CFO
Jeffrey C. Metz - President
Greg Polk - VP of Finance
Doherty continued from 48
to recognize what was coming down
the pipeline. He was an executive
with Marriott in the mid-1980s when
he decided to become a Roy Rogers
franchisee. He bought 19 restaurants
in Connecticut and operated 28 by
1990, when Hardee’s bought the chain
and infamously began converting the
units.
When Roy Rogers began to struggle, Doherty sold most of his stores off
and bought into Applebee’s, opening
two locations in 1993, just as the company’s growth was surging. Nine years
later, in 2002 and in the midst of the
last recession, Doherty came across an
up-and-coming brand named Panera
Bread and bought the rights to Long
Island, New York.
Doherty’s restaurants are performing reasonably well for this economy.
Panera sales have been up about 1
percent for the past 12 months, while
Applebee’s has been down 0.5 percent
in that same time period—a good
showing for a casual-dining restaurant at a time when many stores are
seeing steep sales declines. He did note,
however, that “we’re taking it on the
chin” with the three Chevy’s locations.
Overall, he said, the company was up
0.5 percent in 2008, “which is darn
good.”
Doherty is a strong believer in
Applebee’s’ new management team
and said the food is much better now.
So is the value: Applebee’s “2 for $20”
deal—two entrées and an appetizer
for $20—started last fall and has
been a success for his restaurants. So
when the promotion ended late last
year, Doherty continued to advertise
it locally. Applebee’s brought it back
again in April.
Now that competitors like T.G.I.
Friday’s have come out with their own
low-cost menus, is he worried about a
price war? A little. “Some of the competition is desperate,” Doherty said.
“When corporate executives get desperate, they come up with price wars. But
long-term, it’s suicide. I don’t think
casual-dining will get into a real value.
It can’t afford to do that.”
Jon J. Munger - President
Marv Johnson - CFO
August 2009
49
Top 200 Restaurant Franchisees
Monitor
200 by the
Numbers
Y
#
Company
146
Cleveland Restaurant Operators
Valley View, OH
Total number of units the
Monitor 200 franchisees own.
109
Number of franchisees on
the list that own more than
one brand.
28.5
Percent of Monitor 200
franchisees that own a
Yum brand.
5,576
Number of units those Yum
franchisees own.
30
Number of Taco Bell
franchisees on the list,
tops among all brands.
27
Number of Applebee’s
franchisees on the list, tops
among casual dining chains.
50
August 2009
22 Baja Fresh
9 TGI Friday’s
Senior Executives
Ross Farro - CEO
Ed Casey - President
$40 MILLION TO $50 MILLION
147
um! Brands is the largest restaurant
company in the world, owning
three big quick-service brands and 148
a couple of smaller ones. So it’s not
much of a surprise that they’re well
represented on the Monitor 200— 149
but exactly how well represented they
are may indeed come as a surprise, as
you’ll see from the numbers below.
150
16,395
Major Concepts
Northcott Company
Chanhassen, MN
21 Perkins
4 Houlihan’s
Arnold Angeloni - President
Brian Schwen - CFO
El Apple, LLC
El Paso, TX
10 Village Inn
9 Applebee’s
James. J. Gore - President
Ruth M. Blankenship - CFO
RLC Enterprises, Inc.
Northbrook, IL
44 Taco Bell
8 KFC
Spokane Food Services, Inc.
21 McDonald’s
Spokane, WA
Iris Cohn - President
Terry Haseman - Exec. VP
Mark Ray - President
Chris Weber, CFO
151
Romulus, Inc.
26 IHOP
Phoenix, AZ
Christopher Milisci - CEO
Mark Steinmetz - CFO
152
Marwin Management
56 CiCi’s
Dallas, TX
Fred Margolin - President/CEO
Tony Eiserman - COO
153
LeHigh Valley Restaurant Group
16 Red Robin
Allentown, PA
154
Janjer Enterprises, Inc.
29 Popeyes
Silver Springs, MD
155
Bartlett Management Services
Savoy, IL
35 KFC
8 YUM! Multi
Robert Clawson - President
Joseph T. Adams - Counsel
156
Tricorp Food Services, Inc.
13 TGI Friday’s
Chesterfield, MO
Steve Bell - President
Brad Bax - CFO
157
Wendco Group
38 Wendy’s
Pensacola, FL
Roger W. Webb - President
Rick Watson - Controller
158
S-Group Companies
33 Wendy’s
Sandusky, OH
John Stock - President
Dave Volz - Controller
159
Zancanelli Management
41 YUM! Multi
Overland Park, KS
160
Shamrock Co, Inc.
Hinsdale, IL
29 Taco Bell
12 KFC
161
Pizza Hut of Arizona
Tucson, AZ
36 Pizza Hut
5 Jerry Bobs
Brent Kyte - Chairman
Pat McConaughey - President
162
LaBelle Management
Mt. Pleasant, MI
14 Bennigan’s
8 Ponderosa
Brad Hansen - CEO
Tom Binder - CFO
163
RedKing Foods, LLC
36 Burger King
Minnetonka, MN
164
Den-Tex Central, Inc.
39 Denny’s
San Antonio, TX Stephen J. Hanzlik - CEO
Brian H. Slotter - CFO
Jerome Friedlander - President
Jan Strompf - Vice President
Gary Zancanelli - President
T. Scott Sullivan - CFO
Stephen McGue - CEO/President
Dick Rediehs - CFO
Jim Reddin - President
Scot Wederquist - CFO
Dawn LaFreeda - President
Lori Hildebrand- CFO
Restaurant Franchisees Top 200
#
Company
Major Concepts
165
JEM Management Corp.
Fresno, CA
166
Waterloo Restaurant Ventures
12 Romano’s Mac Grill
Vancouver, WA
22 Wendy’s
15 KFC
Senior Executives
Craig Horn - President/CFO
Richard Braden - Vice President
Barry McGowan - CEO
Paul Acker - CFO
167
J & S Restaurants
42 Hardee’s
Cleveland, TN
168
Hart Restaurant Management
38 Burger King
Corpus Christi, TX
169
Scottish Food Systems
Laurinburg, NC
170
DiPasqua Enterprises
85 Subway
Winter Park, FL
171
H & K Partners
Milwaukee, WI
172
Brodersen Management Corp.
29 Popeyes
Milwaukee, WI
John Brodersen - President
Brenda Cook - CFO
173
Century Fast Foods
34 Taco Bell
Los Angeles, CA
Robert Brunson - President
James DeBoard - CFO
174
Pizza Hut of Southern Wisconsin
34 Pizza Hut
Madison, WI
Richard Divelbiss - President
James Williams - COO
27 KFC
8 Pizza Inn
38 KFC
7 YUM! Multi
Julia Scoggins - CEO
Tammy Bivens - VP/Controller
Robert Hart - President
Rosemary Roberts - CFO
Thomas A. Broome - President
Bruce Goodwin - CFO
Peter DiPasqua Jr. - CEO
Michael Mackubin - CFO
Peter Helf - President & CEO
Rick Schroeder - CFO
$30 MILLION TO $40 MILLION
175
L & K Hodge
64 Papa Murphy’s
McKinleyville, CA
176
Frandeli Group
60 Papa John’s
Los Angeles, CA
177
Premier Restaurant Management
Orange Village, OH
178
Rawson Foodservice Inc
21 Wendy’s
Rocky Hill, NJ
179
PFC/Classic Dining
Crystal Lake, IL
180
Wendy’s of Montana
23 Wendy’s
Billings, MT
181
46 KFC
5 YUM! Multi
27 Denny’s
1 Ruby Tuesday
Peak Interests, LLC
45 Pizza Hut
Golden, CO
182
Huse, Inc.
38 Arby’s
Bloomington, IN
183
S.L. Investments, Inc.
30 Carl’s Jr.
Las Vegas, NV
Larry N. Hodge - President
Kathryin L. Hodge - CFO
Doug Pak - CEO
Michael Kim - Vice President
Thomas Arnold - President
Robert Arnold - Vice President
Stephen Baclini - President
Scott Christine - CFO
About the
Monitor 200
O
ur annual Monitor 200 research
includes questionnaires, phone
surveys, and in some cases, a
review of public documents such as
annual reports and 10Ks. We sincerely
thank the companies that responded
to our surveys, as most of the Top
200 companies provided us with their
data.
Our report consists of ranking
companies according to revenue generated by a company’s franchised
restaurants. If the company happens
to operate a restaurant concept that is
not franchised, or is the franchisor of
another concept, we will not include
that number in the overall revenue or
unit total. In cases where an acquisition took place during the year, we
derive pro-forma revenues in calculating the company’s ranking.
For companies that did not respond
to our survey, we confirmed the number of units operated by the company,
and then estimated the revenue based
on reported chain averages. In the case
of a tie in the amount of total revenue,
we settled in favor of the company
with the most units.
If you believe your company might
make the Monitor 200 list and we’ve
missed you (or you know of another
company that should be listed), please
contact Abbi Nawrocki at (612) 7673200 to be included in next year’s
ranking.
The Monitor 200 report is combined
with a Second 200 report prepared by
Technomic, Inc. The entire Top 400
report can be purchased by visiting our
Web site at www.restfinance.com.
Darrell Imler - President
Ken Kilberger - CFO
Greg McDonald - President/CEO
Kari Parker - Controller
Joseph M. Aragon - CEO
Johanna M. Padilla
Stephen Huse - Chairman/CEO
Thomas R. Browne - President
Steve Larson - Owner
Laura Stites - Controller
Volume 19, Number 6 • Restaurant Finance Monitor, 2808 Anthony Lane South, Minneapolis, MN 55418 • ISSN #1061-382X
OUTLOOK
Stocks in the City
MARKEt WRAp
Little Sheep
Group Limited
June 19, 2008
Landry’s
Restaurants, Inc
“Pursuit Of Happyness” Chris Gardner to
0968 • HKEx
LNY • NYSE
Keynote
Restaurant Finance & Development
A very hot and steamy New York City provided the backdrop
Conference
at Caesars Palace in November
earlier this month for Piper Jaffray’s 28th Annual Consumer
Global Offering
Going Private Transaction
Conference that included, among some 70 companies retailing (Subject to Completion)
(Subject to Completion)
a variety of consumer discretionary products and services, a
Christopher Gardner’s life story will be an inspiration
Date: June
2008
June 16,
dozen or so restaurant companies. Mr. Market has not been
to 11,
those
in restaurant or finance Date:
businesses
and2008
we are
Shares Offered:
comprising
transaction
Size:
Approximately $1.3
kind to consumer stocks in general since the housing bust,
thrilled245,188,000,
that he will speak
to attendees
of our 19th
annual
174,699,870
new shares
and 70,488,130
billion
including company
but by and large presenting companies offered an optimistic,
Restaurant
Finance
& Development
Conference
which debt
shares bywill
selling
shareholders
Details: Landry’s
Restaurants’ Board
if measured, tone.
be held
at Caesars Palace on November
9-11, 2008.
Offer Price: HK$3.18 per share
of Directors agreed to an April 4,
Jamba Juice led all restaurant presentations, a fitting kickoff
Net
Proceeds:is nowEstimated
at own
2008
buyoutbrokerage
offer from Chairman
Gardner
the head of his
successful
as the company has suffered a number of the ills that plague
HK$462,000,000
after20
feesyears ago, he was
and
CEO Tilman
J. Fertitta whereby
firm, but just
homeless.
Fascinated
the broader industry. Not so long ago there was talk of Jamba
Use of Proceeds:
About
percent
for Fertitta,
owneror of
by finance,
but 60
without
connections,
an MBA
even39 percent of
Juice as the next Starbuck’s, back when the comparison developing
was
150 newdegree,
units andGardner
refurbishing
outstanding
shares, will buy all
a college
appliedLandry’s
for training
programs
meant to flatter rather than damn a concept. Unfortunately
50 company-owned
restaurants;
20 a spot
remaining
at brokerage
firms. Heabout
earned
in the outstanding
Dean Wittershares for $21 per
for shareholders, the similarity between the two companies
percent for
expanding
lamb
processing
share.
Fertitta
had
offered
Reynolds training program, but became homeless in San to pay $23.50
is most striking in the downward trajectory traced by their
and soupFrancisco
production
about 5 of per
share back
in January
2008, but
andfacilities;
the sole guardian
his toddler
son when
he
respective stock charts over the past five quarters.
percent could
for upgrading
IT
systems
and
cited
deteriorating
credit
markets during
not make ends meet on his trainee salary.
staff training facilities; about 10 percent the intervening months for upping
To be fair, much of Jamba’s difficulties have been outsidefor
the acquisitions
of
other
restaurants;
the associated
Gardner’s story is one of overcoming
obstacles, debt
facingfinancing costs
company’s control. Crop freezes at one point caused a spike
and the the
balance
for general
necessary
to complete
daunting
task of corporate
balancing life
responsibilities,
andthe buyout. The
in their citrus fruit costs and they’re now seeing commodity
purposesultimately succeeding. Gardner company
entertainacompetitive bids
went on will
to become
cost pressure across the board. A heavy presence in California
Underwriters:
Merrill
forIn451987
days.heFertitta
indicated that the
top earner
at BearLynch
Stearnsand
& Co.
founded
has left them particularly vulnerable to the housing crunch,
Deutschethe
Bank
investment
bank
Jefferies
brokerage firm of Gardner Rich
in Chicago
from
his & Company
with first year average unit volumes in the state down about
Selling Shareholders:
InvestorsThe
andstory
hasofagreed
to provide
the debt financing
home with just3i$10,000.
Gardner’s
life was
20 percent for the 2007 class of stores. But the company does
PraxCapital
the transaction.
published as an autobiography, The for
Pursuit
of Happyness,
admit to adding considerable infrastructure to accommodate
in May 2006, and became a New York Times #1 bestaccelerated growth just as comps were falling and cost pressures INCOME
StAtEMENt
StAtEMENt
seller. Gardner
was the inspiration for theINCOME
movie released
were rising, further depressing profitability.
Quarter
endedWill
March 31, 2008
Year ended
December 31,
2007 (RMB)
by Columbia
Pictures
in December 2006
starring
Smith.
Falling comps, rising input costs, overzealous development
Revenues.......................... $294,825,000
Revenues.............................949,174,000
plans and the loss of low-frequency customers plague many
Net IncomeConference
.......................... $1,522,000
Profit ...................................
95,051,000
The Restaurant Finance
& Development
restaurant companies, of course. And like many companies,
Net Income
Perbusiness
Share ................... $0.10
is the place to look for capital, find
deals and
Jamba’s strategy is to dial back unit growth, drive traffic through
opportunities,
make excellent business contacts, or simply
BALANCE ShEEt
new menu items—particularly breakfast offerings—and look
BALANCE
ShEEt
Asget
of December
31, 2007on
(RMB)
up-to-speed
what’s going on in the
restaurant
to drive more loyal, reoccurring traffic. They’re also partnering
As of March
31, 2008
industry. Registration information will be available
in July
Cash .................................. 100,330,000
with Nestle to offer ready-to-drink beverages to diversify their
or on-line at www.restfinance.com.Cash
For more
information,
..................................$45,600,000
Long term Debt .................... 9,841,000
revenue stream.
call us at 800-528-3296.
Long term Debt .............. $407,400,000
Shareholders’ Equity...........191,476,000
Shareholders’ Equity ....... $307,200,000
McCormick & Schmick’s is a far cry from Jamba Juice, but
they’re suffering from many of the same issues. Traffic is down,
SUMMARY:
particularly on weekends, leading to decreased wait timesLittle
and Sheep is a leading Inside
This Issue
SUMMARY:
full-service
a falloff in bar business as a result. The company also expects
restaurant
chain Sources
in the Peoples
Republic Landry’s Restaurants,
Finance
................................................pages
2 & 3Inc. owns and
to see a tightening in business spending in the near future,of
and
operates restaurants5 &
under
ChinaThe
with
over 10 percent
of all sales
Copeland
Connection
...............................pages
6 the Landry’s
like Jamba they’re noting a geographic correlation betweenofthefull-service
Rainforest
chainsM&A
operating
in the Seafood House, Chart
An Efficient
Practice.......................................
pageHouse,
6
worst hit housing markets and store performance.
House
PRC as Market
recentlyWrap
as 2006.
The company Café, Saltgrass Steak
............................................................
page
9 and Signature
owns and
operates
94 ............................................
and franchises Group trade
Analyst
Reports
pagesnames.
10 & 11The company
Outlook continued on page 8
240 Little Sheep restaurants in the PRC, also owns and operates the Golden
along with nine company and seven Nugget Hotels and Casinos located in
© 2008 Restaurant
Finance
franchised
unitsMonitor
located in Hong Kong, Las Vegas and Laughlin, Nevada. The
Macau, Japan, Canada, Indonesia and company recently signed a contract for
the construction at the Golden Nugget of
the United States.
a $160 million hotel tower to be completed
by early 2010. The company properties
include hotels and aquariums in both
Houston and Denver.
Red Robin Gourmet
Burgers, Inc.
RRGB • NASDAQ
$50 Million Share Repurchase
Date: June 11, 2008
Shares Repurchased: 1,480,763
Price Per Share: $33.76
total Repurchase: $50,000,000
Details: The company completed its $50
million share repurchase authorization
initially announced on August 16, 2007
when shares were trading around $36.50.
Management expects the share count
reduction to add $0.06 to earnings per
share in fiscal 2008 and $0.11 in fiscal
2009.
INCOME StAtEMENt
16 weeks ended April 20, 2008
Revenues.......................... $255,593,000
Net Income .......................... $7,253,000
Net Income Per Share...................$0.43
BALANCE ShEEt
As of April 20, 2008
Cash ...................................$17,028,000
Long term Debt .............. $142,062,000
Shareholders’ Equity ....... $295,239,000
SUMMARY:
Red Robin Gourmet Burgers, Inc.
owns and operates 258 company-owned
casual dining restaurants in 27 states
and franchises another 135 casual
dining restaurants in 24 states and two
Canadian Provinces. The company is
not selling new franchises though it will
grant new territory to current franchisees
from time to time.
Page 9
August 2009
51
Top 200 Restaurant Franchisees
#
Company
Over the past 10 years,
184
Bloomin Apple/Heartland Apple
19 Applebee’s
Mount Pleasant, SC
the list has transformed
185
Mach Robin LLC
13 Red Robin
Sun Valley, ID
186
RREMC, LLC
26 Denny’s
West Palm Beach, FL
187
WMCR Co.
Alpena, MI
188
Saxton Pierce Restaurant Corp
24 McAlister’s Deli
Dallas, TX
189
Apple Arkansas/El Chico of AR
Texarkana, TX
190
Mountain Range Restaurants, LLC
24 Denny’s
Tempe, AZ
191
GZK, Inc.
Dayton, OH
from one dominated
primarily by QSR chains
to one that is almost
equally weighted between
QSR and casual dining.
—John Hamburger, president of
Franchise Times Corp
Major Concepts
35 KFC
3 YUM! Multi
Senior Executives
Kevin Allardice - Owner
Marianne Allardice - Owner
Chris Stephens - CEO
Kevin Embree - CFO
John Metz - CEO
Gary Bloome - CFO
Timothy Fitzpatrick - President
Douglas C. Horne - CFO
14 Applebee’s
5 El Chico
33 Arby’s
13 Lee’s Famous Recipe
Kelly Saxton - CEO/CFO
Jim Robertson - VP
Alan Smith - President
Barrie Thomson - VP
Robert Gentz - Principal
William Cox - Principal
Neil M. Kaufman - CEO
Steven R. Stanforth - CFO
2007
2009 Top 400 ResTauRanT FRanchise RepoRT
2008
RESTAURANT FRANCHISE COMPANY REPORT
Technomic/Restaurant Finance Monitor TOP 400
200
Technomic/Restaurant Finance Monitor
TOP 400
RESTAURANT FRANCHISE
This newly updated report helps readers develop sales and marketing
strategies and identify growth opportunities. Leveraging the Restaurant Finance
Monitor 200 and the Technomic Future 200, coverage encompasses sales of
approximately 10% of the total restaurant industry. Content includes:
C O M PA N Y R E P O R T
Identification.
Analysis.
► Contact name, address
► Franchise growth analysis
► Regions of operation
► In-depth overview
► Sales ranking
► Beyond Franchise Monitor 200
Trends.
Profiles.
Food industry information you can count on.
Order online at www.technomic.com/franchise, or for more information contact
Cody Aguillard at 312-506-3862 or [email protected].
Food industry information you can count on.
52
August 2009
Restaurant Franchisees Top 200
#
Company
Major Concepts
192
Tem-Kil, Inc.
Nacagdoches, TX
193
Restaurant Company (The)
19 Arby’s
Richmond, VA
Richard Ripp - President
John Ripp - Controller
194
Texas Subs, Inc.
63 Subway
Ft. Worth, TX
Eric Werner - CEO
Erica Joslen - Controller
195
Ocedon
22 Burger King
Sedalia, CO
31 KFC
4 YUM! Multi
Senior Executives
Lucille DeWitt - President
Leon Lloyd - CFO
Kenneth Donahue - CEO
Joe Fernandez - Vice President
$28 MILLION TO $30 MILLION
196
Sidal, Inc.
Terre Haute, IN
24 Papa John’s
21 Rally’s
Al Ruckriegel - President
Jason Kelly - CFO/Controller
197
NJB Operations, Inc.
Lincolnshire, IL
23 Taco Bell 7 Pizza Hut
Neil Borkan - President
Jack Goldberg - Accounting
198
Hot Restaurant Group
Fairport, NY
33 Bruegger’s
6 Great Northern Pizza
199
Seattle PJ Pizza, LLC
42 Papa John’s
Redmond, WA
200
Quantum Leap Restaurants, Inc.
Eau Claire, WI
14 TGI Friday’s
1 Green Mill
Ken Greene - CEO
Mike Borrelli - CFO
Kevin Sonneborn - CEO
Lael Sonneborn - CFO
Monitor continued from 43
more than one restaurant concept in
1998. Of those, a total of 52 companies operate a third concept.
Most of the franchisees in the Top
200 ranking generally choose top
brands such as McDonald’s, Burger
King, Taco Bell, T.G.I. Friday’s,
Applebee’s, Wendy’s, Arby’s, Pizza
Hut and KFC. These are the so-called
“tier one” concepts, which suggests
that they are easier for companies to
finance.
The big ones also get bigger. The
YUM! Brands system alone accounts
for 5,687 units, or 34 percent of the
entire number of units in the Top
200 ranking. The No. 1 company on
the Top 200 is Kansas-based NPC
International, YUM!’s largest franchisee, operating 1,098 Pizza Huts.
There is no doubt the old adage
“strength in numbers” rings true this
year. A great franchise has staying
power, even in a downturn. Don’t
expect the Top 200 companies to
go hog wild and build a tremendous
amount of new units in 2009.
—John Hamburger
Thomas Larson - President
Rodger Herman - CFO
August 2009
53
Top 200 Restaurant Franchisees
Alphabetical Listing
COMPANY
Rank
COMPANY
Rank
COMPANY
AB Enterprises
96
Caspers Company
38
J&B Restaurant Partners
ACG Texas, LP
69
47
Jan Companies
ADF Companies
12
Casual Restaurant
Concepts, Inc.
Cedar Enterprises, Inc.
29
Al Hut, Inc.
118
Altes LLC/Setla LLC
119
AmRest, LLC
15
Ansara Restaurant Group, Inc.
106
Apex Rest. Management Inc.
98
Apple American Group LLC
3
Apple Arkansas
/El Chico of AR
189
Apple Core Enterprises, Inc.
101
Apple Corps, L.P.
127
Apple Gold Group
Apple J, LP
37
113
AppleCreek Management Co.
79
Apple-Metro, Inc.
55
Applesauce, Inc.
/Apple Illinois
34
Austaco, Inc.
Century Fast Foods
173
Cleveland Restaurant
Operators
146
CLP Corporation
80
Concord Hospitality, Inc.
63
Cotti Foods Corp
Covelli Enterprises
132
8
Daland Corporation
81
DavCo Restaurants, Inc.
21
Den-Tex Central, Inc.
164
Desert de Oro Foods, Inc.
112
DiPasqua Enterprises
170
DL Rogers Corp.
52
Doherty Enterprises, Inc.
14
Rank
107
43
COMPANY
Patterson & Associates Inc.
Peak Interests, LLC
Janjer Enterprises, Inc.
154
Pennant Foods Corp.
JEM Management Corp.
165
JIB Management
24
JRN, Inc.
20
Pilot Travel Center LLC
K Investments of Ohio
Rank
94
181
COMPANY
Southern Multifoods, Inc.
Spokane Food Services, Inc.
Rank
73
150
54
Stanton & Assoc., Inc.
86
Pepper Dining, Inc.
10
Strang Corporation
60
PFC/Classic Dining
179
13
100
Pizza Hut of Arizona
161
Kaizen Group Inc.
28
11
Pizza Hut of
Southern Wisconsin
174
Kazi Management VI, LLC
Kessler Group Inc
82
Pizza Properties, Ltd.
56
K-MAC Enterprises
65
PJ United
78
Koning Restaurants
International
121
L & K Hodge
175
LaBelle Management
162
LDF Food Group, Inc.
123
LeHigh Valley
Restaurant Group
153
Platinum Corral, LLC
110
Premier Restaurant Mgmt
177
QK, Inc.
76
Quality Dining Inc.
18
Quality Restaurant
Concepts
45
Strategic Restaurants
Acquisition
Sun Holdings, LLC
7
25
Synned
51
T.L. Cannon
Management Corp.
32
Tacala, LLC
31
Tar Heel Capital
71
T-Bird Restaurant Group
26
Team Schostak
Family Restaurants
93
Tem-Kil, Inc.
192
Texas Subs, Inc.
194
Thomas and King, Inc.
19
Dolan Foster Enterprises, LLC
116
LeVecke & Company
50
Quantum Leap
Restaurants, Inc.
200
Tricorp Food Services, Inc.
156
84
Doro, Inc.
145
Luihn Food Systems, Inc.
68
R & L Foods, Inc.
105
Trigo Hospitality
114
Austin Sonic Inc
91
DRM, Inc.
137
Lunan Corp.
134
Rawson Foodservice Inc
178
Twins Group (The)
B & B Consultants
23
Duke & King Acquisition Corp
Mach Robin LLC
185
RedKing Foods, LLC
163
Twoton Inc.
133
Restaurant Company (The)
193
U.S. Restaurants, Inc.
141
62
B & G Food Enterprises, LLC
135
El Apple, LLC
148
128
Emerald Foods, Inc.
108
Mancha Development
Company
97
Bailey Company (The)
Bari Management
131
Falcon Holdings, LLC
104
Marwin Management
152
Bartlett Management
Services
155
First Sun Management Corp.
117
McEssy Investment Co.
103
Meritage Hospitality Group
130
Benton Properties, Inc.
99
BF Companies/ERJ Dining
Bistro Group (The)
Bloomin Apple
/Heartland Apple
2
67
184
Boddie-Noell Enterprises
6
Border Foods Companies
30
Both Inc
95
BR Associates, Inc.
46
Briad Group (The)
9
Brodersen
Management Corp.
172
Bros. Management Inc.
139
BurgerBusters, Inc.
74
By the Rockies
70
C.J.K. & Associates
136
Carisch, Inc.
111
Carlisle Corporation
44
Carolina Restaurant Group
48
Carrols Restaurant Group, Inc.
5
Foodservice Management Co.
42
Fowler Foods Inc.
120
Metro Corral Partners, Inc.
Frandeli Group
176
Metz Enterprises
Friendly Franchisees Corp.
36
Mirabile Investment Corp.
Frisch’s Restaurants
64
Morgan’s Foods, Inc.
Gala Corporation
90
Mountain Range
Restaurants
Goldco, LLC
92
Restaurant
Management Co.
Restaurant
Management Group
124
RGT Management, Inc.
109
138
RLC Enterprises, Inc.
149
140
RoHoHo, Inc.
115
77
Romulus, Inc.
151
41
190
Rose Group (The)
RPM Pizza
102
Hospitality Restaurant Group
125
Pacific Bells Inc
72
57
66
Scarbrough
Management Corp.
53
William Tell, Inc.
Wisconsin
Hospitality Group
S-Group Companies
158
Shamrock Co, Inc.
160
196
Huse, Inc.
182
Palo Alto Inc.
58
Sidal, Inc.
Paradigm
Investment Group
83
Sizzling Platter, LLC
61
Southern Bells, Inc.
88
Sponsors:
167
126
169
199
198
J & S Restaurants
143
Seattle PJ Pizza, LLC
Hot Restaurant Group
22
Whit-Mart, Inc.
Scottish Food Systems
Pacific Island
Restaurants, Inc.
Interfoods of America, Inc.
49
35
147
High Plains Pizza
Wendy’s of
Colorado Springs
Western Reserve
Restaurant
Northcott Company
195
33
122
4
Ocedon
157
West Quality
Food Service Inc
197
16
Wendco Group
183
NJB Operations, Inc.
Heartland Food Corp.
166
188
129
142
85
Waterloo Restaurant
Ventures
Saxton Pierce
Restaurant Corp
171
Hallrich Inc.
OCAT, Inc.
W.K.S. Restaurant Corp.
S.L. Investments, Inc.
H & K Partners
59
1
27
144
Muy Brands, LLC
NPC International, Inc.
89
Valenti Management
180
RREMC, LLC
168
V&J Holding Inc.
Wesfam Restaurants, Inc.
75
Hart Restaurant
Management
17
Wendy’s of Montana
MRCO, LLC
Harman Management Corp.
United States Beef Corp.
186
191
GZK, Inc.
39
87
40
WMCR Co.
187
Zancanelli Management
159