The Restaurant Finance Monitor’s Top 200 ResTauRanT ... · PDF fileAugust 2009 43 #...

The Restaurant Finance Monitor’s Top 200 ResTauRanT FRanchisees

Sponsors:

42 August 2009

1 NPC International, Inc. $689,689,000 1098 Pizza Hut James K. Schwartz - CEO Overland Park, KS Troy D. Cook - Exec. VP/CFO

2 BF Companies/ERJ Dining 503,000,000 161 Wendy’s Junior Bridgeman - President Louisville, KY 118 Chili’s Troy Hanke - CFO

3 Apple American Group LLC 439,773,000 189 Applebee’s Gregory G. Flynn - CEO San Francisco, CA Lorin M. Cortina - CFO & EVP

4 Harman Management Corp. 416,362,000 139 KFC James D. Olson - CEO Los Altos, CA 119 A&W/KFC James Jackson - CFO

5 Carrols Restaurant Group, Inc. 391,549,000 315 Burger King Alan Vituli - CEO Syracuse, NY Paul Flanders - CFO

6 Boddie-Noell Enterprises 364,367,000 341 Hardee’s William L. Boddie - President Rocky Mount, NC 10 Moe’s SW Grill W. Craig Worthy - Sr. VP/CFO

7 Strategic Restaurants 341,918,500 264 Burger King Jerry Comstock - CEO Acquisition Corp 16 TGI Friday’s Steven Grossman - CFO San Ramon, CA

8 Covelli Enterprises 325,000,000 145 Panera Bread Sam Covelli - President Warren, OH 3 O’Charleys Bob Fiorino - CFO

9 Briad Group (The) 321,170,000 73 TGI Friday’s Brad Honigfeld - CEO Livingston, NJ 43 Wendy’s David Cahill - CFO

10 Pepper Dining, Inc. 300,000,000 100 Chili’s John McGlone - CEO Charlotte, NC Gary Sachs - CFO

11 Kazi Management VI, LLC 297,000,000 235 KFC Zubair Kazi - CEO Studio City, CA 22 Burger King Brian Burr - President

12 ADF Companies 289,815,000 300 Pizza Hut Don Harty - CEO Fairfield, NJ 9 Panera Bread Michael Lubitz - CFO

13 Pilot Travel Center LLC 269,474,000 148 Subway Jimmy Haslam - President Knoxville, TN 47 Wendy’s Mitch Steenrod - CFO

14 Doherty Enterprises, Inc. 264,800,000 59 Applebee’s Edward Doherty - CEO Allendale, NJ 22 Panera Bread Jerry Marcopoulos - CFO

15 AmRest, LLC 256,500,000 104 Applebee’s Mike Muldoon - CEO Atlanta, GA Trish Farley - CFO

16 Heartland Food Corp. 251,700,000 221 Burger King Steve Wiborg - CEO Downers Grove, IL Joel Aaseby - CFO

17 United States Beef Corp. 246,467,000 260 Arby’s Jeffery Davis - CEO Tulsa, OK 5 Taco Bueno Brett Pratt - CFO

18 Quality Dining Inc. 245,574,000 117 Burger King Daniel B Fitzpatrick - CEO Mishawaka, IN 45 Chili’s John C. Firth - President

# Company Revenue Major Concepts Senior Executives

ThE Top 25

Top of the Heap

Once again, Franchise Times presents the Monitor Top 200, ranking the largest multi-unit

franchisees based on their 2008 rev-enues.

The Monitor has tracked the rev-enue and unit performance of the largest multi-unit restaurant fran-chisees 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 oper-

Top 200 Restaurant Franchisees

Monitor continued on 43

At a time when the restaurant industr y as a whole is struggling, here are 200 examples of multi-unit franchisees running successful companies. Research for this special feature was compiled by our sister publication, the Restaurant Finance Monitor, and was first printed in its June issue.

So many units, so little time

August 2009 43

# Company Revenue Major Concepts Senior Executives

ThE Top 25

# Company Major Concepts Senior Executives

$150 MILLIoN To $190 MILLIoN

26 T-Bird Restaurant Group 63 Outback Steakhouse Thomas Shannon - President La Jolla, CA Mike Christensen - CFO

27 Valenti Management 117 Wendy’s Darrell Valenti - CEO Tampa, FL 17 Chili’s Steve Nesbitt - CFO & VP

28 Kaizen Group Inc. 73 Burger King Syed Ahmad - President Beaverton, OR 53 Denny’s Paul Hillman - CFO

29 Cedar Enterprises, Inc. 132 Wendy’s James Evans - CEO Columbus, OH Shawn Hiller - CFO

30 Border Foods Companies 91 Taco Bell Lee J. Engler - CEO Golden Valley, MN 76 Pizza Hut Barry Zelickson - CFO

31 Tacala, LLC 164 Taco Bell Don Ghareeb - CEO Birmingham, AL 5 Taco Bell/LJS Joey Pierson - CFO

32 T.L. Cannon Management Corp. 61 Applebee’s Matthew J. Fairbairn - CEO Ponte Vedra Beach, FL 1 Urban Flats Ritch Mabry - VP/CFO

33 Rose Group (The) 58 Applebee’s Harry T. Rose - CEO Newtown, PA 4 Corner Bakery Christopher Tobia - VP & CFO

26-200

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 suf-fered 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 sys-tem alone, there were a total of 29 Applebee’s franchisees that made this year’s Top 200 ranking. They oper-ated 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 sys-tem. No other franchise system came even close. The 29 Applebee’s franchi-sees 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 GrowthOver a 10-year period, the reve-

nue of the Top 200 franchisees has grown steadily to $21.3 billion, up from $13.6 billion in 1998. Not sur-prisingly, considering the economic downturn and the weighting of casual dining units in the ranking, the rev-enue of the Top 200 companies took a hit in 2008, declining to $21.3 bil-lion 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

19 Thomas and King, Inc. 240,999,000 90 Applebee’s Mike Scanlon - President Lexington, KY 7 Carino’s Beth Waldrep - CAO

20 JRN, Inc. 225,395,000 180 KFC John R. Neal - President Columbia, TN 14 KFC/Taco Bell Dick Moore - CFO

21 DavCo Restaurants, Inc. 211,246,000 156 Wendy’s Dave Norman - President Crofton, MD Charles McGuire - VP Finance

22 Interfoods of America, Inc. 205,000,000 165 Popeyes Robert S. Berg - CEO Miami, FL 19 Burger King Steve M. Wemple - President/COO

23 B & B Consultants 200,000,000 155 Sonic Drive Ins Barbara Stamner - President Las Cruces, NM Leslie Berriman - VP, CFO

24 JIB Management 190,000,000 119 Jack in the Box Anil Yadav - President & CEO Fremont, CA 16 Denny’s Tejal Chocksi - Controller

25 Sun Holdings, LLC 190,000,000 75 Popeyes Guillermo Perales - President La Jolla, CA 44 Golden Corral Ted Croft - CFO

Restaurant Franchisees Top 200

Monitor continued from 42

Monitor continued on 53

44 August 2009


34 Applesauce, Inc./Apple Illinois LLC 81 Applebee’s W. Curtis Smith - President Crestview Hills, KY Jerome D. Kreger - CFO & EVP

35 Western Reserve Restaurant Mgmt 112 Wendy’s Richard C. Fox - President Rochester, NY Robert L. Cottier - CFO


36 Friendly Franchisees Corporation 66 Carl’s Jr. Harshad Dharod - President La Palma, CA 18 Denny’s Anthony Carrick - CFO

37 Apple Gold Group 71 Applebee’s Michael D. Olander - President Raleigh, NC 6 Burger King Elizabeth McGee - CFO

38 Caspers Company 51 McDonald’s Blake Casper - CEO Tampa, FL Chuck Peterson, Jr. - CFO

39 Restaurant Management Co. 130 Pizza Hut Hal W. McCoy II - CEO Wichita, KS 17 Long John Silver Terry Freund - CFO

40 Wisconsin Hospitality Group 82 Pizza Hut Mark Dillon - CEO & President Wauwatosa, WI 41 Applebee’s Jason Westhoff - CFO

41 Metro Corral Partners, Inc. 26 Golden Corral Eric Holm - CEO Orlando, FL Erich Booth - CFO

42 Foodservice Management Co. 71 Jack in the Box Abe Alizadeh - President Roseville, CA 5 TGI Friday’s Bal Pal - Vice President

43 Jan Companies 96 Burger King Nicholas Janikies - President Cranston, RI 3 Popeyes Cynthia Janikies-Simonson -COO

44 Carlisle Corporation 96 Wendy’s Gene Carlisle - Chairman & CEO Memphis, TN Paul Volpe - VP of Finance

45 Quality Restaurant Concepts 55 Applebee’s Fred Gustin - President Birmingham, AL 3 Up the Creek Charles Galloway - CFO


46 BR Associates, Inc. 103 Long John Silver Robert Ruckriegel - CEO Jasper, IN 31 Wendy’s Jason Kelly - CFO

47 Casual Restaurant Concepts, Inc. 47 Applebee’s Franklin Carson - President Tampa, FL Annette Kirk - CFO

48 Carolina Restaurant Group 85 Wendy’s Quint Graham - President Charlotte, NC Gary Miller - CFO

49 Wendy’s of Colorado Springs 74 Wendy’s Richard W. Holland - President Colorado Springs, CO 10 Golden Corral Chris Rushing - Controller

50 LeVecke & Company 60 Carl’s Jr. Jason LeVecke - President Guadalupe, AZ 60 Hardee’s Annette Atkisson - CFO

51 Synned 37 Applebee’s Sunil Dharod - CEO Dallas, TX 18 Burger King John Fox - Vice President


Boddie-Noell Enterprises

W h e n t h e r e c e s s i o n h i t , B o d d i e - N o e l l Enterprises could have just waited for their custom-ers. After a ll, it does operate many Hardee’s in the

Carolinas and Virginia. And con-sumers continue to “trade down” to quick-service restaurants.

Instead, the company increased its marketing—perfect timing. A diffi-culty 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

How Three Monitor 200 Companies Continue to Thrive

We singled out three companies from our illustrious group of Monitor 200 “winners” and

asked them what they were doing dif-ferently these past couple of quarters from previous years. From increasing their marketing budgets to retraining employees in the finer points of cus-tomer service, these companies will show you what it takes to be at the top of the food chain.

—profiles by Jonathan Maze

Mike Boddie

Cutting costs and phone lines while increasing marketing

August 2009 45


52 DL Rogers Corp. 86 Sonic Drive Ins James Junkin - CEO North Richland Hills, TX Mark Berger - CFO/Controller

53 Scarbrough Management Corp. 66 Burger King William L. Scarbrough - President San Ramon, CA 5 On the Border Kelly Scarbrough - President

54 Pennant Foods Corp. 92 Wendy’s Mike Cardinal - CEO Knoxville, TN Tina Hertzal - CFO

55 Apple-Metro, Inc. 28 Applebee’s Zane Tankel - Chairman & CEO Harrison, NY 1 Chevys Frank P. Venice - CFO & EVP

56 Pizza Properties, Ltd. 39 Peter Piper Pizza John T. Hjalmquist - President El Paso, TX 34 Burger King Polly Vaughn - CFO

57 Pacific Island Restaurants, Inc. 50 Pizza Hut Greg Dollarhyde - Chairman Honolulu, HI 40 Taco Bell Kevin Kurihara, VP/CFO

58 Palo Alto Inc. 65 Taco Bell Robert Alvarado - CEO Denver, CO 40 Pizza Hut David M. Godfrey - CFO

59 Muy Brands, LLC 47 Pizza Hut Jim Bodenstedt - President San Antonio, TX 30 Long John Silver John Haynie - CFO

60 Strang Corporation 29 Panera Bread Donald W. Strang III - President Cleveland, OH 27 Applebee’s Gerald M. Stoffl - CFO

61 Sizzling Platter, LLC 62 Little Caesar’s Ted Morton - President Murray, UT 22 Sizzler Steve Pack - Controller

62 Duke & King Acquisition Corp 95 Burger King Rodger Head - President Burnsville, MN Becky Moldenhauer - CFO

63 Concord Hospitality, Inc. 42 Applebee’s Larry Bird - CEO Lincoln, NE 5 Village Inn John Gabel - CFO

64 Frisch’s Restaurants 35 Golden Corral Craig Maier - CEO Cincinnati, OH Donald Walker - VP/CFO

65 K-MAC Enterprises 127 Taco Bell Sam Fiori - President Ft. Smith, AR 24 KFC/Taco Bell Jennifer Kizer - CFO

66 RPM Pizza 142 Domino’s Pizza Glenn A. Mueller - President Gulfport, MS Richard P. Mueller, III - COO

67 Bistro Group (The) 31 TGI Friday’s James Rieger - President Cincinnati, OH 5 McAlister’s Victoria Chester - CFO

68 Luihn Food Systems, Inc. 33 KFC Al Luihn - CEO Morrisville, NC 24 Taco Bell Fay Clayton - Controller

69 ACG Texas, LP 55 IHOP Joseph E. Langteau - CEO Plano, TX Douglas Shaw - CFO

70 By the Rockies 80 Hardee’s Steve Rosenfeld - CEO Westminster, CO 35 Carl’s John Miller - CFO

71 Tar Heel Capital 75 Wendy’s James C. Furman - CEO Boone, NC Melissa Collins - CFO


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 cre-ative, such as eliminating a phone line from every unit—a big savings in a 300-unit company. Company execu-tives have also reduced energy expenses and added an efficiency task force. “We just try to be smart with spending,” said Mike Boddie, president of restau-rant 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 res-taurant two blocks from a gas station Mayo Boddie owned.

As the concept took off, the com-pany grew steadily to 45 units by 1970. Boddie-Noell owned the first Hardee’s to serve biscuits for breakfast—a pro-gram 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 suc-cess 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 custom-ers and lighter eaters.

“A lot of customers stil l 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 any-thing like this,” he said. “It’s very tough, but we’ve been fortunate because peo-ple have traded down to fast food. As bad as the economy has got, we’ve been able to sustain sales.”

Boddie continued from 44

46 August 2009



72 Pacific Bells Inc 79 Taco Bell Tom Cook - President Vancouver, WA 1 Buffalo Wild Wings Mary Bottoms - CFO

73 Southern Multifoods, Inc. 52 Taco Bell Larry Durrett - President Jacksonville, TX 17 Taco Bell/KFC Robert Cudd - CFO

74 BurgerBusters, Inc. 80 Taco Bell Tassos Paphites - CEO Virginia Beach, VA 10 Pizza Hut David Lajoie - CFO

75 MRCO, LLC 68 Taco Bell Farzin Ferdowsi - President Brentwood, TN 17 Yum! Multi Michael Shahsavari - Sr. VP/CFO

76 QK, Inc. 64 Denny’s Robbie Qualls - CEO Holbrook, AZ 5 Del Taco Irma Carpenter - CFO

77 Morgan’s Foods, Inc. 72 KFC Leonard Stein-Sapir - CEO Cleveland, OH 13 YUM! Multi Kenneth L. Hignett - CFO

78 PJ United 115 Papa John’s Douglas Stephens - President Birmingham, AL Brad Leonard - CFO

79 AppleCreek Management Co., Inc. 40 Applebee’s William Palmer - CEO Duluth, GA Jerry Killinger - CFO/VP


80 CLP Corporation 43 McDonald’s James Black - President Homewood, AL Richard Wood - CFO

81 Daland Corporation 93 Pizza Hut Willam J. Walsh Jr. - President Wichita, KS Alan Seiwert - CFO

82 Kessler Group Inc 47 Friendly’s Laurence Kessler - President Rochester, NY 21 Burger King Dennis Kessler - Executive VP

83 Paradigm Investment Group 87 Hardee’s Don Wollan - Chairman Rancho Sante Fe, CA Brian Kelley - Managing Owner

84 Austaco, Inc. 74 Taco Bell Dirk Dozier - CEO/President Austin, TX Dave Polis - CFO

85 W.K.S. Restaurant Corp. 54 El Pollo Loco Roland C. Spongberg - President Lakewood, CA 4 Denny’s Mathew McGuinness - CFO

86 Stanton & Assoc., Inc. 62 Wendy’s Mark Behm - Co-owner Jackson, MI Caroline Lowe - CFO

87 Twins Group (The) 61 Pizza Hut Nick Kallergis - President Bannockburn, IL 34 Taco Bell John Kallergis - CEO

88 Southern Bells, Inc. 60 Taco Bell Craig Fenneman - President Indianapolis, IN 5 KFC Doug Shaffer - CFO


RPM Pizza

In 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 com-pany has dealt with the retirement of one of its founders, Richard Mueller, whose initials comprise the compa-ny’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 fran-chise 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 back-ground. “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 pick-up 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 competitive-ness 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

Pizza franchisee has survived a series of events which had a dominoes effect on profits

August 2009 47



89 V&J Holding Inc. 64 Pizza Hut Valerie Daniels-Carter - President Milwaukee, WI 38 Burger King John Daniels - Vice President

90 Gala Corporation 19 Applebee’s Anand D. Gala - President Los Alamitos, CA 5 Famous Dave’s Cyrus Commissariat - VP Finance

91 Austin Sonic Inc 62 Sonic Drive Ins Jerry Conway - President Austin, TX Vic Lacy - CFO

92 Goldco, LLC 61 Burger King Frederick B. Beilstein IV - CEO Dothan, AL Bennie Arbour - CFO

93 Team Schostak Family Restaurants 59 Burger King Mark S. Schostak - CEO Livonia, MI 3 Del Taco Mike Devlin - VP of Finance

94 Patterson & Associates Inc. 52 Wendy’s James Patterson - President Louisville, KY Mark Wheeler - Vice President

95 Both Inc 24 Golden Corral Houston Odom - President Virginia Beach, VA Gary Carter - CFO

96 AB Enterprises 14 Burger King Joseph Wong - CEO Redding, CA 12 Applebee’s Bob Kirshner - CFO

97 Mancha Development Company 36 Burger King Vince Eupierre - CEO Corona, CA 19 Denny’s Bob Gonda - CFO

98 Apex Rest. Management Inc. 92 LJS/A&W Tabbasum Mumtaz - CEO Pleasanton, CA Ajay Dhillon - CFO

99 Benton Properties, Inc. 64 Sonic Pete Esch - President/CEO Rogers, AR Ron Babcock - CFO

100 K Investments of Ohio 44 Perkins John Klingerman - President Bloomsberg, PA 2 Quaker Steak & Lube Russ Berner - Vice President

101 Apple Core Enterprises, Inc. 23 Applebee’s Myron Thompson - CEO Minot, ND 2 Village Inn Robert J. Lamont - CFO

102 High Plains Pizza 76 Pizza Hut William Colvin - President Liberal, KS Amy Hinkle - CFO/Controller

103 McEssy Investment Co. 40 McDonald’s Ernie Masucci - President/COO Lake Forest, IL John Hall - CFO

104 Falcon Holdings, LLC 81 Church’s Chicken Aslam Khan - CEO Oak Brook, IL Giovanna Koning - CFO

105 R & L Foods, Inc. 29 Pizza Hut Richard Breakie - President San Antonio, TX 9 Taco Bell John Haynie - CFO


106 Ansara Restaurant Group, Inc. 21 Red Robin Victor Ansara - President Farmington Hills, MI 5 Big Boy Lewis Ansara - Vice President


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. Eighty-six 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 hurricane hit Domino’s with struggles at the corpo-rate 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 deliv-ery 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 busi-ness went through some fundamental changes. “People are still eating pizza, but their buying habits have changed,” he said. “The niches are not well-defined, 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 sand-wiches and bread bowls, giving it a significant lunch business and mak-ing it a more direct competitor with Subway, rather than just pizza chains.

Headquarters is firming up oper-ations, 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.”

RPM continued from 46

48 August 2009


107 J&B Restaurant Partners 32 Friendly’s Joe Vitrano - President Ronkonkoma, NY 10 Taco Bell Jerry Snearly - CFO

108 Emerald Foods, Inc. 60 Wendy’s Donald L. Feinstein - Chairman Houston, TX Mark J. George - President

109 RGT Management, Inc. 55 Taco Bell Sean Tuohy - CEO Memphis, TN 13 LJS/A&W Michael Roe - COO

110 Platinum Corral, LLC 22 Golden Corral Billy Sewell - President Jacksonville, NC Kirby Mitchels - CFO/Controller

111 Carisch, Inc. 73 Arby’s George & Gerald Carisch - Owner Wayzata, MN Fred Stauber - CEO

112 Desert de Oro Foods, Inc. 72 Taco Bell Krystal Burge - President Kingman, AZ Mark Peterson - Vice President

113 Apple J, LP 32 Applebee’s Art Everson - CEO Greenville SC Coye Mann - CFO

114 Trigo Hospitality 31 Pizza Hut Joyce L. Lunsford - President St. Joseph, MI 20 Panera Bread Greg Molter - Managing Partner

115 RoHoHo, Inc. 55 Papa John’s Philip L Horn, Jr. - President Charleston, SC 2 Jersey Mike’s Peggy Hunt - CFO

116 Dolan Foster Enterprises, LLC 63 Taco Bell Paul Luce - CFO Pleasanton, CA Randy Rodrigues - Owner

117 First Sun Management Corp. 51 Wendy’s Joe Turner - CEO Clemson, SC Clark Mizell - CFO

118 Al Hut, Inc. 98 Pizza Hut Charles D. Hudson - CEO Independence, OH Christopher M. Flocken - CFO

119 Altes LLC/Setla LLC 102 Rally’s Robert Alrod - CEO Boca Raton, FL 6 Checker’s Mitch Alrod - Managing Director

120 Fowler Foods Inc. 33 KFC Chris Fowler - President Jonesboro, AR 20 KFC/Taco Bell Jamie King - Controller

121 Koning Restaurants International 62 Pizza Hut Al Salas - President Miami, FL Omer Sezer - CFO

122 West Quality Food Service Inc 52 KFC Richard West - President Laurel, MS 20 YUM! Multi David Childress - CFO

123 LDF Food Group, Inc. 42 Wendy’s Larry Fleming - Chairman Wichita, KS Don Haynes - President

124 Restaurant Management Group 45 Hardee’s Jack Mangan - CEO Concord, NC 18 Little Caesars Craig McClure - CFO

125 Hospitality Restaurant Group, Inc. 30 Taco Bell Ken Underwood - CEO Traverse City, MI 24 Pizza Hut Diane Burns - CFO

126 William Tell, Inc. 18 Applebee’s John B. Prince - President Salt Lake City, UT 8 Famous Dave’s


Doherty Enterprises

It wa sn’t a n epiphany, but in late 2007 Ed Doherty sensed something going on. The res-taurant business was softening. The sub-prime lending 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 col-lapse, 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 oper-ates. This year Doherty Enterprises will open between 10 and 11 restau-rants, 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 compa-ny’s crew members and management, who are staying put. “It helps the organization,” Doherty said. “When everybody is closing restaurants, stop-ping 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 orga-nization.”

Doherty’s experience enabled him

Doherty continued on 49

Timing is everything, but experience pays the bills

Ed Doherty


August 2009 49



127 Apple Corps, L.P. 24 Applebee’s David Rolph - CEO Witchita, KS Micah Derr - CFO/Controller

128 Bailey Company (The) 58 Arby’s Geoffrey Bailey - President Golden, CO 2 Good Times William D. Whitehurst - CFO

129 Hallrich Inc. 81 Pizza Hut Anthony Szambecki - CEO Kent, OH Dennis R. Abbuhl, Jr. - CFO

130 Meritage Hospitality Group 49 Wendy’s Robert E. Schermer - CEO Grand Rapids, MI 4 O’Charley’s Gary Rose - COO & CFO

131 Bari Management 51 Burger King Ralph Cimmarusti - President Glendale, CA Howard Schwartz - CFO

132 Cotti Foods Corp 55 Taco Bell Peter Capriotti - President & CFO Rancho Santa Margarita, CA 5 Pizza Hut Steve Dees - COO

133 Twoton Inc. 39 Burger King William L. Harrington - CEO Lancaster, PA Gerald E. Mitchell, Jr. - President

134 Lunan Corp. 62 Arby’s Gregory Schulson - President Chicago, IL 7 Burrito Beach Steve Ganek - Controller

135 B & G Food Enterprises, LLC 36 Taco Bell Gregory Hamer, Sr. - President Morgan City, LA 6 Taco Bell/KFC Ellen Pennison - CFO

136 C.J.K. & Associates 19 Applebee’s David Knox - CEO Lodi, CA 10 Burger King Cheryl Maveety - CFO

137 DRM, Inc. 71 Arby’s Matt Johnson - President & CEO Omaha, NE Mike Morgan - CFO

138 Metz Enterprises 12 TGI Friday’s Jeffrey C. Metz - President Dallas, PA 3 Krispy Kreme Greg Polk - VP of Finance

139 Bros. Management Inc. 27 McDonald’s Tom Cochran - President Knoxville, TN Gary Magee - CFO

140 Mirabile Investment Corp. 42 Burger King Joseph W. Mirabile - CEO Memphis, TN 4 Popeye’s Robert Cook - President

141 U.S. Restaurants, Inc. 36 Burger King Steven M. Lewis - President Blue Bell, PA Michael J. Kadelski - CFO

142 OCAT, Inc. 37 Taco Bell David Olson - President Modesto, CA 1 YUM! Multi Joyce Machado - CFO

143 Whit-Mart, Inc. 27 Applebee’s Gary P. Whitman - CEO Charleston, SC Michael Wiser - CFO

144 Wesfam Restaurants, Inc. 27 Burger King Rich Wyckoff - President Huntsville, AL Tim Mitchell - CFO

145 Doro, Inc. 55 Hardee’s Jon J. Munger - President Eau Claire, WI 4 Taco John’s Marv Johnson - CFO


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 strug-gle, Doherty sold most of his stores off and bought into Applebee’s, opening two locations in 1993, just as the com-pany’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 perform-ing 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 restau-rant 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 com-petition is desperate,” Doherty said.

“When corporate executives get desper-ate, 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.”

Doherty continued from 48

50 August 2009


146 Cleveland Restaurant Operators 22 Baja Fresh Ross Farro - CEO Valley View, OH 9 TGI Friday’s Ed Casey - President


147 Northcott Company 21 Perkins Arnold Angeloni - President Chanhassen, MN 4 Houlihan’s Brian Schwen - CFO

148 El Apple, LLC 10 Village Inn James. J. Gore - President El Paso, TX 9 Applebee’s Ruth M. Blankenship - CFO

149 RLC Enterprises, Inc. 44 Taco Bell Iris Cohn - President Northbrook, IL 8 KFC Terry Haseman - Exec. VP

150 Spokane Food Services, Inc. 21 McDonald’s Mark Ray - President Spokane, WA Chris Weber, CFO

151 Romulus, Inc. 26 IHOP Christopher Milisci - CEO Phoenix, AZ Mark Steinmetz - CFO

152 Marwin Management 56 CiCi’s Fred Margolin - President/CEO Dallas, TX Tony Eiserman - COO

153 LeHigh Valley Restaurant Group 16 Red Robin Stephen J. Hanzlik - CEO Allentown, PA Brian H. Slotter - CFO

154 Janjer Enterprises, Inc. 29 Popeyes Jerome Friedlander - President Silver Springs, MD Jan Strompf - Vice President

155 Bartlett Management Services 35 KFC Robert Clawson - President Savoy, IL 8 YUM! Multi Joseph T. Adams - Counsel

156 Tricorp Food Services, Inc. 13 TGI Friday’s Steve Bell - President Chesterfield, MO Brad Bax - CFO

157 Wendco Group 38 Wendy’s Roger W. Webb - President Pensacola, FL Rick Watson - Controller

158 S-Group Companies 33 Wendy’s John Stock - President Sandusky, OH Dave Volz - Controller

159 Zancanelli Management 41 YUM! Multi Gary Zancanelli - President Overland Park, KS T. Scott Sullivan - CFO

160 Shamrock Co, Inc. 29 Taco Bell Stephen McGue - CEO/President Hinsdale, IL 12 KFC Dick Rediehs - CFO

161 Pizza Hut of Arizona 36 Pizza Hut Brent Kyte - Chairman Tucson, AZ 5 Jerry Bobs Pat McConaughey - President

162 LaBelle Management 14 Bennigan’s Brad Hansen - CEO Mt. Pleasant, MI 8 Ponderosa Tom Binder - CFO

163 RedKing Foods, LLC 36 Burger King Jim Reddin - President Minnetonka, MN Scot Wederquist - CFO

164 Den-Tex Central, Inc. 39 Denny’s Dawn LaFreeda - President San Antonio, TX Lori Hildebrand- CFO


Monitor 200 by the Numbers

Yum! Brands is the largest restaurant company in the world, owning three big quick-service brands and

a couple of smaller ones. So it’s not much of a surprise that they’re well represented on the Monitor 200—but exactly how well represented they are may indeed come as a surprise, as you’ll see from the numbers below.

16,395Total number of units the Monitor 200 franchisees own.

109Number of franchisees on the list that own more than one brand.

28.5Percent of Monitor 200 franchisees that own a Yum brand.

5,576Number of units those Yum franchisees own.

30Number of Taco Bell franchisees on the list, tops among all brands.

27Number of Applebee’s franchisees on the list, tops among casual dining chains.

August 2009 51


165 JEM Management Corp. 22 Wendy’s Craig Horn - President/CFO Fresno, CA 15 KFC Richard Braden - Vice President

166 Waterloo Restaurant Ventures 12 Romano’s Mac Grill Barry McGowan - CEO Vancouver, WA Paul Acker - CFO

167 J & S Restaurants 42 Hardee’s Julia Scoggins - CEO Cleveland, TN Tammy Bivens - VP/Controller

168 Hart Restaurant Management 38 Burger King Robert Hart - President Corpus Christi, TX Rosemary Roberts - CFO

169 Scottish Food Systems 27 KFC Thomas A. Broome - President Laurinburg, NC 8 Pizza Inn Bruce Goodwin - CFO

170 DiPasqua Enterprises 85 Subway Peter DiPasqua Jr. - CEO Winter Park, FL Michael Mackubin - CFO

171 H & K Partners 38 KFC Peter Helf - President & CEO Milwaukee, WI 7 YUM! Multi Rick Schroeder - CFO

172 Brodersen Management Corp. 29 Popeyes John Brodersen - President Milwaukee, WI Brenda Cook - CFO

173 Century Fast Foods 34 Taco Bell Robert Brunson - President Los Angeles, CA James DeBoard - CFO

174 Pizza Hut of Southern Wisconsin 34 Pizza Hut Richard Divelbiss - President Madison, WI James Williams - COO


175 L & K Hodge 64 Papa Murphy’s Larry N. Hodge - President McKinleyville, CA Kathryin L. Hodge - CFO

176 Frandeli Group 60 Papa John’s Doug Pak - CEO Los Angeles, CA Michael Kim - Vice President

177 Premier Restaurant Management 46 KFC Thomas Arnold - President Orange Village, OH 5 YUM! Multi Robert Arnold - Vice President

178 Rawson Foodservice Inc 21 Wendy’s Stephen Baclini - President Rocky Hill, NJ Scott Christine - CFO

179 PFC/Classic Dining 27 Denny’s Darrell Imler - President Crystal Lake, IL 1 Ruby Tuesday Ken Kilberger - CFO

180 Wendy’s of Montana 23 Wendy’s Greg McDonald - President/CEO Billings, MT Kari Parker - Controller

181 Peak Interests, LLC 45 Pizza Hut Joseph M. Aragon - CEO Golden, CO Johanna M. Padilla

182 Huse, Inc. 38 Arby’s Stephen Huse - Chairman/CEO Bloomington, IN Thomas R. Browne - President

183 S.L. Investments, Inc. 30 Carl’s Jr. Steve Larson - Owner Las Vegas, NV Laura Stites - Controller


About the Monitor 200

Our 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 gen-erated 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 acquisi-tion took place during the year, we derive pro-forma revenues in calculat-ing the company’s ranking.

For companies that did not respond to our survey, we confirmed the num-ber 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) 767-3200 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.

Page 9

Little Sheep Group Limited

Date: June 11, 2008Shares Offered: 245,188,000, comprising 174,699,870 new shares and 70,488,130 shares by selling shareholdersOffer Price: HK$3.18 per shareNet Proceeds: Estimated at HK$462,000,000 after fees Use of Proceeds: About 60 percent for developing 150 new units and refurbishing 50 company-owned restaurants; about 20 percent for expanding lamb processing and soup production facilities; about 5 percent for upgrading IT systems and staff training facilities; about 10 percent for acquisitions of other restaurants; and the balance for general corporate purposes Underwriters: Merrill Lynch and Deutsche BankSelling Shareholders: 3i Investors and PraxCapital

INCOME StAtEMENtYear ended December 31, 2007 (RMB)

Revenues.............................949,174,000Profit ................................... 95,051,000

BALANCE ShEEtAs of December 31, 2007 (RMB)

Cash ..................................100,330,000Long term Debt ....................9,841,000Shareholders’ Equity...........191,476,000

SUMMARY:Little Sheep is a leading full-service restaurant chain in the Peoples Republic of China with over 10 percent of all sales of full-service chains operating in the PRC as recently as 2006. The company owns and operates 94 and franchises 240 Little Sheep restaurants in the PRC, along with nine company and seven franchised units located in Hong Kong, Macau, Japan, Canada, Indonesia and the United States.

0968 • HKEx Global Offering

(Subject to Completion)

Landry’s Restaurants, Inc

LNY • NYSE Going Private Transaction(Subject to Completion)

Red Robin Gourmet Burgers, Inc.

Date: June 11, 2008Shares Repurchased: 1,480,763Price Per Share: $33.76total Repurchase: $50,000,000Details: 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 StAtEMENt16 weeks ended April 20, 2008

Revenues.......................... $255,593,000Net Income .......................... $7,253,000Net Income Per Share ...................$0.43

BALANCE ShEEtAs of April 20, 2008

Cash ...................................$17,028,000Long term Debt ..............$142,062,000Shareholders’ 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.

$50 Million Share Repurchase

Date: June 16, 2008 transaction Size: Approximately $1.3 billion including company debtDetails: Landry’s Restaurants’ Board of Directors agreed to an April 4, 2008 buyout offer from Chairman and CEO Tilman J. Fertitta whereby Fertitta, owner of 39 percent of Landry’s outstanding shares, will buy all remaining outstanding shares for $21 per share. Fertitta had offered to pay $23.50 per share back in January 2008, but cited deteriorating credit markets during the intervening months for upping the associated debt financing costs necessary to complete the buyout. The company will entertain competitive bids for 45 days. Fertitta indicated that the investment bank Jefferies & Company has agreed to provide the debt financing for the transaction.

INCOME StAtEMENtQuarter ended March 31, 2008

Revenues.......................... $294,825,000Net Income .......................... $1,522,000Net Income Per Share ................... $0.10

BALANCE ShEEtAs of March 31, 2008

Cash ..................................$45,600,000Long term Debt .............. $407,400,000Shareholders’ Equity ....... $307,200,000

SUMMARY:Landry’s Restaurants, Inc. owns and operates restaurants under the Landry’s Seafood House, Chart House, Rainforest Café, Saltgrass Steak House and Signature Group trade names. The company also owns and operates the Golden Nugget Hotels and Casinos located in Las Vegas and Laughlin, Nevada. The company recently signed a contract for the construction at the Golden Nugget of a $160 million hotel tower to be completed by early 2010. The company properties include hotels and aquariums in both Houston and Denver.

RRGB • NASDAQ

MARKEt WRApVolume 19, Number 6 • Restaurant Finance Monitor, 2808 Anthony Lane South, Minneapolis, MN 55418 • ISSN #1061-382X

June 19, 2008

OUTLOOK

Inside This IssueFinance Sources ................................................pages 2 & 3 The Copeland Connection ...............................pages 5 & 6An Efficient M&A Practice....................................... page 6Market Wrap ............................................................ page 9Analyst Reports ............................................ pages 10 & 11

© 2008 Restaurant Finance Monitor

Outlook continued on page 8

“Pursuit Of Happyness” Chris Gardner to Keynote Restaurant Finance & Development Conference at Caesars Palace in November

Christopher Gardner’s life story will be an inspiration to those in restaurant or finance businesses and we are thrilled that he will speak to attendees of our 19th annual Restaurant Finance & Development Conference which will be held at Caesars Palace on November 9-11, 2008.

Gardner is now the head of his own successful brokerage firm, but just 20 years ago, he was homeless. Fascinated by finance, but without connections, an MBA or even a college degree, Gardner applied for training programs at brokerage firms. He earned a spot in the Dean Witter Reynolds training program, but became homeless in San Francisco and the sole guardian of his toddler son when he could not make ends meet on his trainee salary.

Gardner’s story is one of overcoming obstacles, facing the daunting task of balancing life responsibilities, and ultimately succeeding. Gardner went on to become a top earner at Bear Stearns & Co. In 1987 he founded the brokerage firm of Gardner Rich in Chicago from his home with just $10,000. The story of Gardner’s life was published as an autobiography, The Pursuit of Happyness, in May 2006, and became a New York Times #1 best-seller. Gardner was the inspiration for the movie released by Columbia Pictures in December 2006 starring Will Smith.

The Restaurant Finance & Development Conference is the place to look for capital, find deals and business opportunities, make excellent business contacts, or simply get up-to-speed on what’s going on in the restaurant industry. Registration information will be available in July or on-line at www.restfinance.com. For more information, call us at 800-528-3296.

Stocks in the City

A very hot and steamy New York City provided the backdrop earlier this month for Piper Jaffray’s 28th Annual Consumer Conference that included, among some 70 companies retailing a variety of consumer discretionary products and services, a dozen or so restaurant companies. Mr. Market has not been kind to consumer stocks in general since the housing bust, but by and large presenting companies offered an optimistic, if measured, tone.

Jamba Juice led all restaurant presentations, a fitting kickoff as the company has suffered a number of the ills that plague the broader industry. Not so long ago there was talk of Jamba Juice as the next Starbuck’s, back when the comparison was meant to flatter rather than damn a concept. Unfortunately for shareholders, the similarity between the two companies is most striking in the downward trajectory traced by their respective stock charts over the past five quarters.

To be fair, much of Jamba’s difficulties have been outside the company’s control. Crop freezes at one point caused a spike in their citrus fruit costs and they’re now seeing commodity cost pressure across the board. A heavy presence in California has left them particularly vulnerable to the housing crunch, with first year average unit volumes in the state down about 20 percent for the 2007 class of stores. But the company does admit to adding considerable infrastructure to accommodate accelerated growth just as comps were falling and cost pressures were rising, further depressing profitability.

Falling comps, rising input costs, overzealous development plans and the loss of low-frequency customers plague many restaurant companies, of course. And like many companies, Jamba’s strategy is to dial back unit growth, drive traffic through new menu items—particularly breakfast offerings—and look to drive more loyal, reoccurring traffic. They’re also partnering with Nestle to offer ready-to-drink beverages to diversify their revenue stream.

McCormick & Schmick’s is a far cry from Jamba Juice, but they’re suffering from many of the same issues. Traffic is down, particularly on weekends, leading to decreased wait times and a falloff in bar business as a result. The company also expects to see a tightening in business spending in the near future, and like Jamba they’re noting a geographic correlation between the worst hit housing markets and store performance.

52 August 2009


184 Bloomin Apple/Heartland Apple 19 Applebee’s Kevin Allardice - Owner Mount Pleasant, SC Marianne Allardice - Owner

185 Mach Robin LLC 13 Red Robin Chris Stephens - CEO Sun Valley, ID Kevin Embree - CFO

186 RREMC, LLC 26 Denny’s John Metz - CEO West Palm Beach, FL Gary Bloome - CFO

187 WMCR Co. 35 KFC Timothy Fitzpatrick - President Alpena, MI 3 YUM! Multi Douglas C. Horne - CFO

188 Saxton Pierce Restaurant Corp 24 McAlister’s Deli Kelly Saxton - CEO/CFO Dallas, TX Jim Robertson - VP

189 Apple Arkansas/El Chico of AR 14 Applebee’s Alan Smith - President Texarkana, TX 5 El Chico Barrie Thomson - VP

190 Mountain Range Restaurants, LLC 24 Denny’s Robert Gentz - Principal Tempe, AZ William Cox - Principal

191 GZK, Inc. 33 Arby’s Neil M. Kaufman - CEO Dayton, OH 13 Lee’s Famous Recipe Steven R. Stanforth - CFO


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].

2009 Top 400 ResTauRanT FRanchise RepoRT

► Contact name, address

► Regions of operation

► Sales ranking

► Franchise growth analysis

► In-depth overview

► Beyond Franchise Monitor 200

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:

Technomic/Restaurant Finance M

onitor TOP 400

Identification.

Analysis.

Trends.

Profiles.

2008

RESTAU

RA

NT FR

AN

CH

ISE CO

MPA

NY REPO

RT

TOP 400RESTAURANT FRANCHISE

Technomic/Restaurant Finance Monitor

C O M PAN Y RE P O R T

200

2007

Food industry information you can count on.

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.

—John Hamburger, president of

Franchise Times Corp

August 2009 53

more than one restaurant concept in 1998. Of those, a total of 52 compa-nies 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 fran-chisee, 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


192 Tem-Kil, Inc. 31 KFC Lucille DeWitt - President Nacagdoches, TX 4 YUM! Multi Leon Lloyd - CFO

193 Restaurant Company (The) 19 Arby’s Richard Ripp - President Richmond, VA John Ripp - Controller

194 Texas Subs, Inc. 63 Subway Eric Werner - CEO Ft. Worth, TX Erica Joslen - Controller

195 Ocedon 22 Burger King Kenneth Donahue - CEO Sedalia, CO Joe Fernandez - Vice President


196 Sidal, Inc. 24 Papa John’s Al Ruckriegel - President Terre Haute, IN 21 Rally’s Jason Kelly - CFO/Controller

197 NJB Operations, Inc. 23 Taco Bell Neil Borkan - President Lincolnshire, IL 7 Pizza Hut Jack Goldberg - Accounting

198 Hot Restaurant Group 33 Bruegger’s Ken Greene - CEO Fairport, NY 6 Great Northern Pizza Mike Borrelli - CFO

199 Seattle PJ Pizza, LLC 42 Papa John’s Kevin Sonneborn - CEO Redmond, WA Lael Sonneborn - CFO

200 Quantum Leap Restaurants, Inc. 14 TGI Friday’s Thomas Larson - President Eau Claire, WI 1 Green Mill Rodger Herman - CFO

Monitor continued from 43 # Company Major Concepts Senior Executives


Alphabetical ListingCOMPANY Rank COMPANY Rank COMPANY Rank COMPANY Rank COMPANY Rank

AB Enterprises 96

ACG Texas, LP 69

ADF Companies 12

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 37

Apple J, LP 113

AppleCreek Management Co. 79

Apple-Metro, Inc. 55

Applesauce, Inc. /Apple Illinois

34

Austaco, Inc. 84

Austin Sonic Inc 91

B & B Consultants 23

B & G Food Enterprises, LLC 135

Bailey Company (The) 128

Bari Management 131

Bartlett Management Services

155

Benton Properties, Inc. 99

BF Companies/ERJ Dining 2

Bistro Group (The) 67

Bloomin Apple /Heartland Apple

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

Caspers Company 38

Casual Restaurant Concepts, Inc.

47

Cedar Enterprises, Inc. 29

Century Fast Foods 173

Cleveland Restaurant Operators

146

CLP Corporation 80

Concord Hospitality, Inc. 63

Cotti Foods Corp 132

Covelli Enterprises 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

Dolan Foster Enterprises, LLC 116

Doro, Inc. 145

DRM, Inc. 137

Duke & King Acquisition Corp 62

El Apple, LLC 148

Emerald Foods, Inc. 108

Falcon Holdings, LLC 104

First Sun Management Corp. 117

Foodservice Management Co. 42

Fowler Foods Inc. 120

Frandeli Group 176

Friendly Franchisees Corp. 36

Frisch’s Restaurants 64

Gala Corporation 90

Goldco, LLC 92

GZK, Inc. 191

H & K Partners 171

Hallrich Inc. 129

Harman Management Corp. 4

Hart Restaurant Management

168

Heartland Food Corp. 16

High Plains Pizza 102

Hospitality Restaurant Group 125

Hot Restaurant Group 198

Huse, Inc. 182

Interfoods of America, Inc. 22

J & S Restaurants 167

J&B Restaurant Partners 107

Jan Companies 43

Janjer Enterprises, Inc. 154

JEM Management Corp. 165

JIB Management 24

JRN, Inc. 20

K Investments of Ohio 100

Kaizen Group Inc. 28

Kazi Management VI, LLC 11

Kessler Group Inc 82

K-MAC Enterprises 65

Koning Restaurants International

121

L & K Hodge 175

LaBelle Management 162

LDF Food Group, Inc. 123

LeHigh Valley Restaurant Group

153

LeVecke & Company 50

Luihn Food Systems, Inc. 68

Lunan Corp. 134

Mach Robin LLC 185

Mancha Development Company

97

Marwin Management 152

McEssy Investment Co. 103

Meritage Hospitality Group 130

Metro Corral Partners, Inc. 41

Metz Enterprises 138

Mirabile Investment Corp. 140

Morgan’s Foods, Inc. 77

Mountain Range Restaurants

190

MRCO, LLC 75

Muy Brands, LLC 59

NJB Operations, Inc. 197

Northcott Company 147

NPC International, Inc. 1

OCAT, Inc. 142

Ocedon 195

Pacific Bells Inc 72

Pacific Island Restaurants, Inc.

57

Palo Alto Inc. 58

Paradigm Investment Group

83

Patterson & Associates Inc. 94

Peak Interests, LLC 181

Pennant Foods Corp. 54

Pepper Dining, Inc. 10

PFC/Classic Dining 179

Pilot Travel Center LLC 13

Pizza Hut of Arizona 161

Pizza Hut of Southern Wisconsin

174

Pizza Properties, Ltd. 56

PJ United 78

Platinum Corral, LLC 110

Premier Restaurant Mgmt 177

QK, Inc. 76

Quality Dining Inc. 18

Quality Restaurant Concepts

45

Quantum Leap Restaurants, Inc.

200

R & L Foods, Inc. 105

Rawson Foodservice Inc 178

RedKing Foods, LLC 163

Restaurant Company (The) 193

Restaurant Management Co.

39

Restaurant Management Group

124

RGT Management, Inc. 109

RLC Enterprises, Inc. 149

RoHoHo, Inc. 115

Romulus, Inc. 151

Rose Group (The) 33

RPM Pizza 66

RREMC, LLC 186

S.L. Investments, Inc. 183

Saxton Pierce Restaurant Corp

188

Scarbrough Management Corp.

53

Scottish Food Systems 169

Seattle PJ Pizza, LLC 199

S-Group Companies 158

Shamrock Co, Inc. 160

Sidal, Inc. 196

Sizzling Platter, LLC 61

Southern Bells, Inc. 88

Southern Multifoods, Inc. 73

Spokane Food Services, Inc. 150

Stanton & Assoc., Inc. 86

Strang Corporation 60

Strategic Restaurants Acquisition

7

Sun Holdings, LLC 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

Tricorp Food Services, Inc. 156

Trigo Hospitality 114

Twins Group (The) 87

Twoton Inc. 133

U.S. Restaurants, Inc. 141

United States Beef Corp. 17

V&J Holding Inc. 89

Valenti Management 27

W.K.S. Restaurant Corp. 85

Waterloo Restaurant Ventures

166

Wendco Group 157

Wendy’s of Colorado Springs

49

Wendy’s of Montana 180

Wesfam Restaurants, Inc. 144

West Quality Food Service Inc

122

Western Reserve Restaurant

35

Whit-Mart, Inc. 143

William Tell, Inc. 126

Wisconsin Hospitality Group

40

WMCR Co. 187

Zancanelli Management 159

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