Pinkberry makes first move into India

 
April 23, 2012 | By Lisa Jennings
 
Pinkberry CEO Ron Graves
Pinkberry is moving into India for the first time in a move that will offer a “sizeable opportunity” as the frozen yogurt chain ramps up international growth, company officials said Monday.

The Los Angeles-based company has signed a franchise agreement with Mumbai-based JMS Corporation Pvt. Ltd., a franchise group that also operates other U.S. brands, such as California Pizza Kitchen, Trader Vic’s and Hard Rock Café in India. The franchise group will open its first Pinkberry in Mumbai later this year.

Ron Graves, Pinkberry’s chief executive, said India offers the chain “a sizeable opportunity over time.” He added, “India is an attractive market given there are over a billion people there.” The company is not releasing details about the structure of the deal or JMS’s plans for growing the brand Graves said.

Pinkberry has been aggressively growing overseas during the past few years, and India is the 18th country in which it will be present. The 180-unit chain saw the opening of about 70 locations in 2011, about half of which were domestic and half international.

The first international location for Pinkberry opened in Kuwait in 2009, and the franchise group there operates eight locations. Most of the chain’s international growth has been across the Middle East, but Peru is also a hot market for Pinkberry, Graves said. The franchisee there has eight locations open after moving into that country just last year.

Some analysts contend that India will soon surpass China as a potential growth market for restaurants companies.

Starbucks is another company with sights set on India. The Seattle-based coffeehouse giant plans to have units open in Mumbai and Delhi before the end of the year in a joint-venture partnership with Tata Global Beverages.

Howard Schultz, Starbucks Corp.’s chair, president and chief executive, serves on Pinkberry’s board, and he co-founded the Seattle-based venture capital firm Maveron LLC, which made a $27.5 million investment in Pinkberry in 2007.

Graves, however, said Starbucks’ plan for India was not a factor for Pinkberry. The key was finding the right franchise partner for the yogurt brand, Graves said — particularly in a complex market like India.

Pinkberry has yet to find the right franchise partner for China, another attractive market that can be tricky, Graves said. “I think that will be a stumbling block for many companies planning to move into China,” he noted. “It’s all about who you partner with.”

Domestic growth for Pinkberry will also continue, according to Graves. The chain has units in 19 states, and franchise growth across the U.S. will focus on both filling existing markets and moving into new cities.

Graves declined to project how many locations are planned in the U.S. this year, but he said a “small fraction” of them would be company-operated locations in Southern California.

Wal-Mart’s Mexican unit hit by bribery scandal

 
April 23, 2012 | By Marianne Wilson
NEW YORK — Wal-Mart Stores confirmed that it is investigating its operations in Mexico for possible violations of the U.S. law that prohibits bribery overseas. The acknowledgement came in response to a lengthy article by The New York Times on Saturday that alleged the giant discounter first learned of allegations of “widespread bribery” by its workers in the country in 2005 and that top executives subsequently covered them up. 

In a report by Reuters, legal and retail experts said that the allegations, if proven true, could badly impact Wal-Mart and its management for years, resulting in steep financial penalties paid to U.S. authorities and the departure of some key executives.

The Times story alleged that Wal-Mart had found evidence of more than $24 million in illicit payments to Mexican officials to help obtain permits for new stores to help speed up openings in that country. Top Wal-Mart officials in the United States learned of the bribery allegations, the Times reported, but the company never reported the matter to U.S. or Mexican authorities.

“If these allegations are true, it is not a reflection of who we are or what we stand for,” Wal-Mart spokesman David Tovar said in a prepared statement. “We are deeply concerned about these allegations and are working aggressively to determine what happened.”

According to the Times, current Wal-Mart CEO Mike Duke and former CEO Lee Scott, who still sits on the chain’s board, were among senior executives allegedly aware of the situation.

Wal-Mart said it has met voluntarily with the Justice Department and the Securities and Exchange Commission to discuss the case.

The expansion of Wal-Mart de Mexico, mainly in the last decade, left the world’s largest retailer with about 20% of its stores in Mexico. 

Chipotle : focus on ingredients boosted 1Q sales

April 19, 2012 | By Lisa Jennings
 

 

  

Chipotle: Focus on ingredients boosted 1Q sales

 

Chipotle Mexican Grill reported a 35-percent increase in profit and double-digit same-store sales for the first quarter, noting that its focus on ingredients “raised with respect for animals, the environment and farmers” is resonating with consumers.

RELATEDChipotle debuts short film on sustainable farming

The Denver-based company said net income for the quarter ended March 31 was $62.7 million, or $1.97 per share, compared with $46.4 million, or $1.46 per share, for the year-earlier quarter.

Same-store sales increased 12.7 percent for the quarter, primarily as a result of increased traffic, though the company said price increases implemented last year also helped.

Revenue grew by 25.8 percent to $640.6 million.

“We’re delighted that our continuing efforts to serve the very best food made from high-quality ingredients raised with respect for the animals, the environment and the farmers are resonating with our customers, allowing us to deliver double-digit comps and record earnings during the quarter,” said Steve Ells, Chipotle’s founder, chairman and co-chief executive.

During the quarter, Chipotle opened 32 restaurants, including one in Toronto, Canada. The company ended the quarter with a total of 1,262 locations in the U.S., Canada and Europe.

In its outlook for the year, Chipotle said it expects to open between 155 and 165 new locations. The chain is also expecting that same-store sales to grow in the mid-single-digit range.

OfficeMax vet assumes reigns of Walgreens’ supply chain management

 

 
April 18, 2012 | By Michael Johnsen
DEERFIELD, Ill. — Walgreens has named Reuben Slone as SVP supply chain management, where he will have leadership responsibility for distribution, transportation, systems integration and engineering, Lean and Six Sigma supply chain initiatives and community outreach.

Slone will join Walgreens May 16 and will report to Walgreens president of community management Mark Wagner.

“Reuben has deep experience in leading supply chain operations, improving service and efficiency and driving innovation in the management of inventory from distribution centers to the stores,” Wagner said.

Slone comes to Walgreens from OfficeMax, where he served as EVP supply chain and general manager of services. In his eight years with OfficeMax, he was responsible for inventory management, transportation and warehousing, strategic sourcing, real estate, store development, facilities, print and copy, business-to-business technology, managed print services and break room and facilities maintenance products businesses. In addition, Slone managed front-end inventory at OfficeMax and oversaw supplier development. Prior to joining OfficeMax, Slone held various executive positions with Whirlpool, General Motors, Federal-Mogul, EDS and Ernst & Young.

Slone also serves as secretary of the board of directors of Aspire of Illinois, a nonprofit organization serving children and adults with developmental disabilities.

Slone takes over supply chain management responsibility from Randy Lewis, who is transitioning to a new role with the company. Lewis will continue to help advise on the company’s programs for people with disabilities and will play a critical role in several of Walgreens key strategic initiatives.

“Randy has been and continues to be a valued leader at Walgreens,” Wagner said. “He has led the supply chain organization for 16 years with integrity, innovation and compassion. We are pleased that we will continue to benefit from his experience as we extend our ground-breaking hiring program for people with disabilities. Randy also will assist with Reuben’s transition and other strategic initiatives that take advantage of his 20 years with Walgreens.”

Panera COO John Maguire leaves to head Friendly’s as CEO

 
April 18, 2012 | By Ron Ruggless

 

John Maguire has resigned as chief operating officer of Panera Bread Co. to become chief executive of Friendly’s Ice Cream LLC, which emerged earlier this year from bankruptcy, the bakery-café chain said Tuesday.

Panera Bread said Charles Chapman III, currently executive vice president of development and licensing for the St. Louis-based company, would succeed Maguire. The changes will be effective May 31.

At Wilbraham, Mass.-based Friendly’s, Maguire will succeed Harsha Agadi, who stepped down in early February as CEO but remained on the board of the 387-unit family-dining chain. Friendly’s COO Jim Parrish has filled the CEO spot on an interim basis.

Friendly’s filed for bankruptcy protection in October 2011 and emerged in January after closing 100 restaurants and shedding much of its debt.

Chapman joined Panera’s board in January 2008 and became chief operating officer in 2011. Previously, he served as chief operating officer at International Dairy Queen and held executive positions at Bruegger’s Bagels and Darden Restaurants Inc.

In March, Panera founder Ron Shaich returned to the chief executive suite in a title-sharing position with Bill Moreton, who remained as president and became co-CEO.

Panera Bread Co. owns and franchises 1,541 bakery-cafes under the Panera, St. Louis Bread Co. and Paradise Bakery & Café brands.

California Supreme Court: Restaurants must provide, not ensure employee breaks

In a long-awaited and closely watched case, restaurant employers garner favorable ruling
April 12, 2012 | By Lisa Jennings
 
The California Supreme Court on Thursday offered a qualified ruling in favor of employers in a long-awaited meal-and-rest break lawsuit involving Chili’s parent Brinker International Inc.

In a decision that many hope will bring clarity to state break requirements and reduce the number of lawsuits that have plagued the restaurant industry, the court said employers across the state need not ensure that workers actually take mandated 30-minute breaks during their shifts.

Employers, however, must make meal and rest breaks available within a certain time during shifts, and they must also keep records of such breaks, the ruling said.

Attorneys for Brinker said they were glad to finally have a decision, which was handed down from the Brinker Restaurant Corp. et al v. The Superior Court for the State of California for the County of San Diego.

The court’s action was seen as a victory for Brinker, though aspects of the case will return to the lower court to play out in light of Thursday’s ruling.

“We’re very pleased that our team members and employees have the flexibility to take or not take their meal breaks,” said Roger Thomson, Dallas-based Brinker’s executive vice president and general counsel.

Steven Katz, an attorney with Reed Smith in Los Angeles, said the ruling was “a clear victory for common sense.”

By allowing employees an opportunity for a meal break, but not forcing them to take a break they may not want, “the court declared the law to be precisely what employees and employers have always thought: it is the employee’s choice to take a meal break, not something forced on employees by the government.”

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Steve Hirschfeld, founder and chief executive of the San Francisco-based labor and employment attorney network Employment Law Alliance, agreed, adding, “What this ruling says, in essence, is that employers don’t have to babysit employees.

“As long as they make available meal and rest periods and encourage their usage, they are not liable for claims brought by employees that they did not receive them,” Hirschfeld said. “Employers are not going to be in a situation where they have to act like ‘big brother’ and constantly monitor employees.”

BJ’s grows local produce program

 
April 10, 2012 | By Gail Hoffer
WESTBOROUGH, Mass. — BJ’s Wholesale Club is capitalizing on the growing demand for locally-grown produce by launching its “Farm to Club” program in each of its 195 clubs in 15 states. Rolling out this spring and summer, the Farm to Club program includes a variety of fresh fruits and vegetables that will be clearly marked with a special “Farm to Club, Locally Grown” seal.

BJ’s defines “local” as grown in the state, so naturally availability of certain produce depends upon the weather and growing season for each item in each state. The company touted the benefits of buying local produce, claiming that doing so ensures it is at its peak flavor and nutritional value and that the local economy is being supported.

“As a buyer at BJ’s, I strive to provide the very best produce for members,” said Rob Johnson, produce buyer for BJ’s Wholesale Club. “The Farm to Club program is very good for both the members who buy the local fruits and veggies and the farmers who are growing our food.”

Currently, Farm to Club produce is available in all Florida clubs. For more information on the program.

McD USA central division president Mike Andres retires

 
April 10, 2012 | By Mark Brandau
McDonald’s Corp. has confirmed that Mike Andres, president of Oak Brook, Ill.-based McDonald’s USA’s central division, will retire on Sept. 1.

According to a report, McDonald’s USA’s chief restaurant officer, Lee Renz, will succeed Andres this fall.

During his 30 years with the company, Andres also served as president and chief executive of the Boston Market chicken chain from 2000 to 2007, when McDonald’s sold the brand. Prior to that post, Andres had been senior vice president and restaurant support officer of McDonald’s Midwest division.

As president of the central division, Andres oversaw 4,400 restaurants in seven geographic regions encompassing 24 states.

“We thank Mike for his unwavering dedication and commitment to brand McDonald’s for more than three decades,” the company said in a statement. “We wish him and his family the very best as he pursues the next phase of his life. Today’s announcement reinforces McDonald’s commitment to developing people and showcases the deep bench of talent at this level who are ready to move into these leadership roles.”

McDonald’s Corp. operates or franchises more than 33,000 restaurants in 119 countries, including more than 14,000 locations in the United States.

New marketing campaigns showcase more than menus

April 6, 2012 | By Mark Brandau

Wendy’s, Domino’s, Dairy Queen, Fazoli’s introduce new taglines, air new TV spots
 
The start of springtime and the start of the second quarter has opened new advertising windows for several of the restaurant industry’s largest advertisers.

In the past week, Wendy’s, Domino’s Pizza, Dairy Queen and Fazoli’s have introduced new television commercials showing a fresh take on sales-building initiatives that the brands have been brewing for months.

Each of the four brands is tying the new spots to the promotion of certain menu items, but each commercial also represents a new step in the brands’ marketing strategies, including a new tagline for Wendy’s, moving from “yes” to “no” at Domino’s, extending the “So good it’s RiDQlous” campaign for Dairy Queen, and unveiling “A Whole New Fazoli’s.”

Wendy’s, Domino’s and Dairy Queen began airing their commercials this week, and Fazoli’s will start broadcasting its new spots Monday.

Wendy’s gets ‘Better’ tagline

Wendy’s latest commercial for its Spicy Guacamole Chicken Club carries the brand’s new tagline, “Now That’s Better.” Brand spokesman Denny Lynch confirmed the slogan will be Wendy’s tagline going forward, though Wendy’s has not yet announced when a new marketing campaign will run.

At an investor conference in January, chief executive Emil Brolick first hinted that Wendy’s would debut a new marketing campaign in the second quarter. Brolick disclosed that the brand had run more than 55 commercials with the “You Know When It’s Real” tagline since October 2009, making it the most successful campaign since the passing of chain founder and spokesman Dave Thomas.

Up to his death in 2002, Thomas filmed more than 700 commercials for Wendy’s, and the chain struggled to find a coherent marketing voice after losing him. One attempt with a new spokesman, Mr. Wendy, lasted only nine commercials, and Brolick called the 24 “red wig” commercials from the middle of last decade “embarrassing.”

New commercials will advertise Wendy’s product quality, which Brolick said during the chain’s fourth-quarter earnings call would position Wendy’s to compete with fast-casual competitors and fend off McDonald’s attempts to outflank the brand with commercials focused on their suppliers.

Watch a commercial featuring the new tagline; story continues below

 

“We have to be in that space, sharing what makes us different and what makes us better,” Brolick said during the call, “and there will be a component of that in our new advertising campaign that is designed to deal specifically with that, along with the traditional need to drive sales through product innovation.”

Dublin, Ohio-based Wendy’s also recently hired Craig Bahner as its chief marketing officer.

Read more: http://nrn.com/article/new-marketing-campaigns-showcase-more-menus?ad=news#ixzz1rYqjsHPQ

JCPenney slashes personnel to streamline business

 
NEW YORK— The ax has fallen at JCPenney. The company on Thursday laid off 600 workers from its corporate headquarters Plano, Texas, as its looks to streamline its business model amid a major reinvention of the business. The staff reduction, which equaled 13% to 14% of the headquarters staff, did not include any senior executives, according to The New York Times.

JCPenney said its new approach to pricing, promotion, merchandising and the customer experience requires a more competitive operational structure, with fewer layers of management. In a statement, CEO Ron Johnson said JCPenny was going to operate like a start-up.

“We are going to extend the reach and span of control of our very best talent,” he said. “We are going to be nimble, quick to learn, quicker to react and totally committed to realizing our vision to become America’s favorite store. Often in business, companies must streamline in order to leap forward. In our case, this has involved some very difficult decisions that have had an impact on many of our associates, but these changes are essential to help us achieve our long-term goals and, ultimately, grow our associate base as we grow our business.”

The staff reduction is of JCPenney’s previously announced plan to reduce annual expenses by $900 million by the end of 2013. This includes $200 million in savings from its corporate headquarters, as well as $400 million in cost savings in store operations and $300 million in advertising expense savings. The changes are expected to reduce expenses to below 30% of sales by the end of 2013.

In addition, the retailer said it will close its customer call center in Pittsburgh, on July 1. The move will eliminate 300 jobs.