Web Exclusive News, April 2005

SEFA Completes Advanced Training Session

The SEFA buying group held the third of its series of SEFA University Courses at the Enodis Technology Center in New Port Richey, Fla.

The Masters-Advanced course was designed to improve the skills of dealer salespeople. Among the programs sessions were “Building a Refrigeration System,” SEFA’s “Dock to Dining” food safety course, a variety of layout and design sessions for DSRs and a productivity seminar presented by Jason Womack of The David Allen Co.

Stephen McGarry, president and CEO of Paramount Restaurant Supply, delivered the event’s closing keynote speech, “The Only Thing that Matters is Results.”

Salute to Excellence Honorees Named

The National Restaurant Association and the National Restaurant Association Educational Foundation announced the honorees of their 18th Annual Salute to Excellence Awards.

The awards recognize those who have innovatively and successfully contributed to the betterment of the foodservice industry.

The 2005 Thad and Alice Eure Ambassador of Hospitality is Donald Tober, chairman and CEO of Sugar Foods Corp.

The 2005 College of Diplomates Inductees are:

Ralph Brennan, president of Ralph Brennan Restaurant Group
James Maynard, co-founder and chairman of Golden Corral
John Metz, chairman and CEO of Metz Enterprises
Jackie Trujillo, chairman and CEO (retired) of Harman Management.

The winners will be honored at a banquet held in May during The NRA Show.

NRA Index Drops in January

The National Restaurant Association’s Restaurant Performance Index fell in January by 1.4% to 101.7.

The RPI is a monthly study of the health of the U.S. restaurant industry. Based on a survey of both commercial and non-commercial operators, it consists of two portions: the Current Situation Index and the Expectations Index, both of which fell in January.

The Current Situation Index dropped by 2.2% to 100.1. Contributing most greatly to this decline were operators’ same-store sales results. Some 46% of respondents reported higher same-store sales in January compared to the same period a year earlier, down from 65% in December. Approximately 36% reported a drop in same-store sales, up from December’s level of 20%.

Customer traffic levels showed a similar decline during the month, with 38% reporting higher traffic in January vs. the year-ago period, down from 55% who registered an increase in December. At the same time, 40% of operators reported a decline in customer traffic, up from 25% in December.

The Expectations Index fell in January, as well, dropping by 0.6% to 103.4. Some 62% of restaurant operators said they expect same-store sales in six months to be higher than the same period in the previous year, down from 66% in January.

Chain Update: Outback, McDonald’s and Others

Financial or operational news released by chains include:

Outback Steakhouse announced that Chairman and CEO Chris Sullivan stepped down as CEO, effective immediately. Bill Allen, who previously served as president of West Coast concepts for the company, replaced Sullivan. In addition, Paul Avery, Outback president, takes on the chief operating officer role. Sullivan and former Chief Operating Officer Bob Basham now serve as co-chairs of the company.

McDonald’s reported that its global systemwide sales for February increased by 2.7% in constant currencies compared to February 2004. Worldwide same-store sales grew by 1.6% during the period. U.S. systemwide sales grew by 5.4% during the month, while same-store sales in the United States increased by 2.6% vs. the same period a year ago.

CKE Restaurants released selected same-store sales data for the four-week period that ended Feb. 28. The company’s Carl’s Jr. concept increased its same-store sales by 2.3% vs. the same period last year, while same-store sales at Hardee’s grew by 3%. Consolidated revenue from company-operated Carl’s Jr. locations reached $42.7 million during the month. Company-operated Hardee’s restaurants posted consolidated revenue of $43.3 million.

Panera Bread Co. announced its same-store sales results for the four weeks that closed on Feb. 19. Company-owned units increased their same-store sales by 9.9% vs. the year-ago period, while franchised locations posted growth of 8.1%. Panera’s systemwide same-store sales increased by 8.6%.