Execs with financial experience take CEO reins at restaurant chains
Current restaurant company chief executives Charlie Morrison of Pizza Inn, left, Jeff Warne of O'Charley's, center and Michael Woodhouse of Cracker Barrel all have chief financial officer listed on their resumes.
By DANNY KING
(June 29, 2009) Ask Jeff Warne if his being a certified public accountant precludes him from being a true “restaurant guy,” and the recently named chief executive of O'Charley's Inc. scoffs at the notion.
“I worked literally in every position in every type of restaurant putting myself through college,” said the 48-year-old Warne, who graduated from St. Cloud State University in Minnesota before getting his MBA at the University of Chicago. “Host, bartender, dishwasher—I've done every job.”
While operations remains the most common route to the corner office, CFOs turned CEOs say you can't underestimate the benefits of knowing your way around a spreadsheet, especially during an economic downturn that has restaurants scrambling to control costs. About six out of 10 restaurant companies reported same-store sales declines in April, which was the 11th straight month the industry as a whole had a comparable-store sales drop, the National Restaurant Association reported in May.
From dealing with activist investors and private-equity firms to selling and buying subsidiaries, conducting regression analysis to uncover areas of poor performance, and having an intimate knowledge of securities regulations, the advantages of a financial point of view are numerous, according to CFOs turned CEOs.
“You have to look at the business daily,” said Charlie Morrison, chief executive and former CFO of Pizza Inn, a 320-unit chain based in The Colony, Texas. He noted that items like labor hours and food waste need to be constantly tracked.
“Those disciplines are necessary to maximize profit when revenues are soft,” he said. The image of a financially trained restaurant operator is a far cry from iconic restaurant figures like Ray Kroc, Carl Karcher and Norman Brinker—operations-oriented people who founded restaurant chains McDonald's, Carl's Jr. and Steak & Ale, respectively, between the 1940s and the 1960s and grew them broadly enough to take the brands public.
To this day, restaurant companies run by former financial chiefs are the exception, not the rule. Among the industry's largest foodservice companies, only a few are led by ex-CFOs, including Burger King's John Chidsey, Aramark Holdings' Joseph Neubauer, Sonic Corp.'s J. Clifford Hudson and Darden Restaurants' Clarence Otis.
Other CFOs turned CEOs include Sally Smith at Buffalo Wild Wings; Michael H. Magusiak of CEC Entertainment, parent of Chuck E. Cheese's; and Tom Baldwin at Morton's The Steakhouse.
“People started out maybe being a little skeptical” of his finance background, Warne said. “But I've been blessed with working with intellectually curious people who want to learn more about that approach.”
Warne worked for T.G.I. Friday's parent, Carlson Cos., for 16 years, including a stint as its CFO, before joining Nashville, Tenn.-based O'Charley's in 2006. O'Charley's operates or franchises 372 units under the O'Charley's, Ninety Nine Restaurant and Stoney River Legendary Steaks brands.
Financial experience comes in handy for companies like Cracker Barrel Old Country Store Inc., whose Cracker Barrel Old Country Store concept includes a large retail component as well as food and beverage. Mike Woodhouse, who joined the Lebanon, Tenn.-based company as CFO in 1995, was promoted to chief executive eight years ago. In 2006, he oversaw the $486 million sale of the company's Logan's Roadhouse chain.
“Having both restaurant and retail operations within one company makes for an extremely complex business,” said Woodhouse, 64. “So, yes, a background as CFO helps. You're already up to speed on so many details and financial processes.”
“As a CFO, I had been able to relate to their understanding of return for the business and the financial metrics in which the business is managed,” said Morrison, 40, who was CFO for Steak & Ale. “That's a clear distinction that a financial background brings.”
With that in mind, former CFOs use financial tools that may make an “in-the-trenches” operator cringe. Warne points to regression analysis, where menu items, franchise-store sales and other metrics are statistically analyzed to help uncover areas of poor performance that need improvement.
Still, with plenty of operations knowledge to back up their respective financial backgrounds, Morrison, Warne and Woodhouse all stress that a restaurant executive can't fake hands-on experience, especially when dealing with franchisees who are trying to withstand the effects of the recession.
With all but three of Pizza Inn's units franchised, Morrison, whose company's same-store sales fell just 1 percent for its most recent quarter, constantly works with restaurant owners to prevent what he called “knee-jerk reactions that sacrifice customer service.”
Likewise, Warne and Woodhouse said that, financial background notwithstanding, chief executives looking to save their way out of an earnings slump would be making a big mistake.
Woodhouse said Cracker Barrel, whose same-store sales for its most recently completed quarter also fell just 1 percent, has been able to keep revenue fairly steady by maintaining portion sizes and quality standards. Meanwhile, Warne said O'Charley's, whose corporate units posted a 2.9-percent same-store sales drop for its most recent quarter, boosted its guest-satisfaction levels in the second half of last year by revamping service standards, calling the approach “old-school hospitality 101.”
“I know that you might generally expect a former financial person, a ‘bean counter,' to focus only on cost-cutting and containment, without regard to the effect on quality or the guest experience,” Woodhouse said. “But I also know that is not the path to success.”
Capodice & Associates is proud sponsor of the www.FranchiseExecutives.com website where we will be posting blogs and future Executive Job opportunities. We hope to see you there!
Tuesday, July 28, 2009
Monday, April 13, 2009
Putting the breaks on Conflict
Would anyone buy a business without seeing a Profit and Loss Statement and buy it on a gut feeling?
Of course not…it’s an objective opportunity to review the strengths and weaknesses of the business, review cost structures and determine weather or not there can be long-term success.
So why with all the talk about how important people are to the organization, do organizations hire, promote, reorganize etc…without completely understanding the strengths, weaknesses, motivations, interests and relationship factors of their executives and managers. The tools/assessment methods available allow you to develop a people P&L for greater organizational success.
One of the great benefits of collecting this data is the opportunity to understand individual differences and to create more productive working relationships.
For example: A company has just reorganized and now John reports to Sally. They have three significant differences: How they prefer to be incentivized and their approach to incentives, their success/challenge orientation and how they express or deal with feeling and their need for emotional expressiveness.
Sample Report
Click here for a sample report
The sample “Differences to Watch” report will show you the value in understanding these differences before the relationship begins, the potential negative behavior associated with the differences and the positive solutions to avoid misunderstanding, conflict and unwanted turnover.
This valuable tool is used for hiring and selection, on-boarding, conflict resolution, succession planning etc. and is a part “Best Practices” for the people centric organization.
For greater insight, call Peter Capodice at 941-906-1990.
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Of course not…it’s an objective opportunity to review the strengths and weaknesses of the business, review cost structures and determine weather or not there can be long-term success.
So why with all the talk about how important people are to the organization, do organizations hire, promote, reorganize etc…without completely understanding the strengths, weaknesses, motivations, interests and relationship factors of their executives and managers. The tools/assessment methods available allow you to develop a people P&L for greater organizational success.
One of the great benefits of collecting this data is the opportunity to understand individual differences and to create more productive working relationships.
For example: A company has just reorganized and now John reports to Sally. They have three significant differences: How they prefer to be incentivized and their approach to incentives, their success/challenge orientation and how they express or deal with feeling and their need for emotional expressiveness.
Sample Report
Click here for a sample report
The sample “Differences to Watch” report will show you the value in understanding these differences before the relationship begins, the potential negative behavior associated with the differences and the positive solutions to avoid misunderstanding, conflict and unwanted turnover.
This valuable tool is used for hiring and selection, on-boarding, conflict resolution, succession planning etc. and is a part “Best Practices” for the people centric organization.
For greater insight, call Peter Capodice at 941-906-1990.
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Career Transition…What do I do Now??
Over the past few months as you might image, we have received an inconceivable number of emails and phone calls regarding career transition advice that we can hardly keep up.
Help is on the way
To support the many companies and individuals who are seeking high quality sound advice in Career Transition, in addition to understanding individual strengths, motivational needs, stress behaviors and careers that hold the greatest potential for individuals, Capodice & Associates has teamed up with the world’s leader in career assessment counseling and individual development. By doing so, Capodice & Associates offers client companies and individuals an alternative to the high cost of out placement services (generally $10,000 +++ per person).
What it does.
After completing the assessment questionnaire backed by over 50 years of research and application, the data is compiled and an individual career report is generated.
The individual career report gives valuable insight that will assist individuals in understanding their strengths, motivational needs, stress behaviors, how you lead people and work with others. It identifies occupational groups and ideal work environments that are the best fit for the individual.
Having this information will help the individual create a more powerful resume, craft a more effective “elevator” speech and develop useful interview and negotiation strategies. All leading to greater individual productivity and personal fulfillment.
Sample Report
Click here for a sample report
Who is this for:
Companies who want to support employees who will be transitioning away from their current organization.
Individuals who want to understand more about themselves and the careers that hold the greatest potential both now and in the future.
Cost: $299.95 per person.
Contact:
Peter Capodice at
941-906-1990
peter@capodice.com
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Help is on the way
To support the many companies and individuals who are seeking high quality sound advice in Career Transition, in addition to understanding individual strengths, motivational needs, stress behaviors and careers that hold the greatest potential for individuals, Capodice & Associates has teamed up with the world’s leader in career assessment counseling and individual development. By doing so, Capodice & Associates offers client companies and individuals an alternative to the high cost of out placement services (generally $10,000 +++ per person).
What it does.
After completing the assessment questionnaire backed by over 50 years of research and application, the data is compiled and an individual career report is generated.
The individual career report gives valuable insight that will assist individuals in understanding their strengths, motivational needs, stress behaviors, how you lead people and work with others. It identifies occupational groups and ideal work environments that are the best fit for the individual.
Having this information will help the individual create a more powerful resume, craft a more effective “elevator” speech and develop useful interview and negotiation strategies. All leading to greater individual productivity and personal fulfillment.
Sample Report
Click here for a sample report
Who is this for:
Companies who want to support employees who will be transitioning away from their current organization.
Individuals who want to understand more about themselves and the careers that hold the greatest potential both now and in the future.
Cost: $299.95 per person.
Contact:
Peter Capodice at
941-906-1990
peter@capodice.com
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Do you know who your star performers are???
As companies struggle to cut Labor/G&A cost out of their businesses, the danger is cutting those with the most underling ability and potential.
Most CEO’s have no idea who their star players really are. They think they do but the fact is unless they are or have actively engaged the use of objective tools that measure behavioral patterns, organizational focus, intellectual styles, interests, culture fit, experience and performance; the decision criteria being utilized is primarily a subjective guess. The reliance is on someone’s opinion which probably changes from time to time and depending on whom you ask the opinion differs. The end result is the loss of high quality talent that may determine the success of your business.
Bla…Bla…Bla…I don’t buy it. I know who my best performers are…
For you non believers, let me give you a real life example:
This organization had grown from 13 units to 120 units within a three year period resulting in out-of-control administrative growth which lead to a bureaucratic infrastructure who became out-of-touch with line management needs. Year over year sales were declining as was company profitability.
Now that’s a bad day… but fear not….
Behavioral Assessment tools were applied to assess and objectively measure the organization and acquire the talent necessary to expedite a company turnaround. Through the assessment process an internal individual was identified with previous unknown star potential. It is also important to understand that this individual was slated to be cut from the organization (It was the opinion of his supervisor that he was “a pain in the neck and should be let go”).
The assessment process using data that could be measured put each team member on a level playing field and uncovered the star qualities of this individual. As the evaluation continued into current and past performance, it became clear this previously unknown star performer should not only continue employment, but be elevated and rewarded. The identified individual was promoted to the Vice President of Operations position. Over a period of approximately two years, the company’s profit has gone from a two million dollar loss to a two million dollar gain. Sales have continued to outpace prior years and today they are driving double digit sales gains is the worst economy since the Great Depression. The individual who was once slated for termination is now the Chief Operating Officer of the company.
This is an example of a small organization… you would be horrified to see what this subjective decision making looks like in a large organization and the amount a great talent that is lost…OMG!!!
P. S. If you think this is an isolated circumstance you are terrible mistaken. This may be the time to open your eyes and take your head out of the sand.
For additional information on the process and how it is implemented, contact Peter Capodice at 941-906-1990.
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Most CEO’s have no idea who their star players really are. They think they do but the fact is unless they are or have actively engaged the use of objective tools that measure behavioral patterns, organizational focus, intellectual styles, interests, culture fit, experience and performance; the decision criteria being utilized is primarily a subjective guess. The reliance is on someone’s opinion which probably changes from time to time and depending on whom you ask the opinion differs. The end result is the loss of high quality talent that may determine the success of your business.
Bla…Bla…Bla…I don’t buy it. I know who my best performers are…
For you non believers, let me give you a real life example:
This organization had grown from 13 units to 120 units within a three year period resulting in out-of-control administrative growth which lead to a bureaucratic infrastructure who became out-of-touch with line management needs. Year over year sales were declining as was company profitability.
Now that’s a bad day… but fear not….
Behavioral Assessment tools were applied to assess and objectively measure the organization and acquire the talent necessary to expedite a company turnaround. Through the assessment process an internal individual was identified with previous unknown star potential. It is also important to understand that this individual was slated to be cut from the organization (It was the opinion of his supervisor that he was “a pain in the neck and should be let go”).
The assessment process using data that could be measured put each team member on a level playing field and uncovered the star qualities of this individual. As the evaluation continued into current and past performance, it became clear this previously unknown star performer should not only continue employment, but be elevated and rewarded. The identified individual was promoted to the Vice President of Operations position. Over a period of approximately two years, the company’s profit has gone from a two million dollar loss to a two million dollar gain. Sales have continued to outpace prior years and today they are driving double digit sales gains is the worst economy since the Great Depression. The individual who was once slated for termination is now the Chief Operating Officer of the company.
This is an example of a small organization… you would be horrified to see what this subjective decision making looks like in a large organization and the amount a great talent that is lost…OMG!!!
P. S. If you think this is an isolated circumstance you are terrible mistaken. This may be the time to open your eyes and take your head out of the sand.
For additional information on the process and how it is implemented, contact Peter Capodice at 941-906-1990.
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
The Behavioral Traits that will take you to the Cleaners
It’s nearly impossible to watch the news or pick up the paper recently without seeing some case of massive fraud or greed. We are all living in the horror of the mortgage meltdown and the impact it has had on the economy and our businesses.
These cunning individuals are not your “two bit” criminals without an education. They are highly educated with advanced college credentials and are/were respected within their fields and communities.
Their behavior reflects a money and opportunity minded individual that when stressed has a “win-at-all-costs” orientation. They are highly competitive and want to know “what’s in it for me”.
This behavior alone may not always lead to excessive greed or criminal activity. In fact many successful entrepreneurs possess this trait. However when this behavior is accompanied by low social adaptability and responsibility followed by a pinch of stress and…BINGO! A great recipe for: skimming, under reporting of income, over statement of income, fictitious revenue, money laundering, concealed liabilities & expenses, improper financial statement disclosures etc…
Good News…We can help
These behaviors can be identified and measured so you can put the appropriate checks and balances in place. To find out how, call Peter Capodice at 941-906-1990.
Capodice & Associates
www.capodice.com
941-906-1990
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
These cunning individuals are not your “two bit” criminals without an education. They are highly educated with advanced college credentials and are/were respected within their fields and communities.
Their behavior reflects a money and opportunity minded individual that when stressed has a “win-at-all-costs” orientation. They are highly competitive and want to know “what’s in it for me”.
This behavior alone may not always lead to excessive greed or criminal activity. In fact many successful entrepreneurs possess this trait. However when this behavior is accompanied by low social adaptability and responsibility followed by a pinch of stress and…BINGO! A great recipe for: skimming, under reporting of income, over statement of income, fictitious revenue, money laundering, concealed liabilities & expenses, improper financial statement disclosures etc…
Good News…We can help
These behaviors can be identified and measured so you can put the appropriate checks and balances in place. To find out how, call Peter Capodice at 941-906-1990.
Capodice & Associates
www.capodice.com
941-906-1990
About Capodice & AssociatesFrom a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Penny Wise and Pound Foolish
Being an entrepreneur myself, I can certainly appreciate cycles that occur within our industry and the challenges we all face in managing through tough economic times.
Unquestionably; retaining or acquiring top talent, controlling costs while continuing to build the brand generally top the list.
Many employers (about 65%) today do not believe their employees are looking at other job opportunities. In reality according to a recent survey by salary.com, 65% of employed respondents are actively looking around. Employers might assume in a soft economy, employees are just happy to have a job. Hiring Managers…you are out of touch with reality! How about another dose of reality? Job browsing this year is up 17% among the employed; people are scared and do not want to be unprepared when the next “cut” knocks at the door. The talent that has been proactive in successfully building your business are the same ones who are on their way to a new opportunity.
So why are they leaving?
Compensation
Development
Recognition
Today more than ever, businesses are being pushed to control costs. In an effort to do so some employers are proposing commission only compensation packages for both domestic and international franchising sales professionals. The danger if the individual accepts this package is realizing most of these sales professionals are likely accepting the program as a “stop gap” until they locate a position with greater security in compensation. Although the temptation may be there for the company to control fixed labor costs, keep in mind that these individuals are still looking and as the economy turns, or a better opportunity arises, they will be gone. The result means continued inconsistency in the sales program, lost sales and an inability to attract top talent in the future. Beware not to be Penny Wise and Pound Foolish!
For greater understanding into maximizing individual performance through compensation call Peter Capodice at 941-906-1990 of email at peter@capodice.com.
Capodice & Associates
www.capodice.com
941-906-1990
Unquestionably; retaining or acquiring top talent, controlling costs while continuing to build the brand generally top the list.
Many employers (about 65%) today do not believe their employees are looking at other job opportunities. In reality according to a recent survey by salary.com, 65% of employed respondents are actively looking around. Employers might assume in a soft economy, employees are just happy to have a job. Hiring Managers…you are out of touch with reality! How about another dose of reality? Job browsing this year is up 17% among the employed; people are scared and do not want to be unprepared when the next “cut” knocks at the door. The talent that has been proactive in successfully building your business are the same ones who are on their way to a new opportunity.
So why are they leaving?
Compensation
Development
Recognition
Today more than ever, businesses are being pushed to control costs. In an effort to do so some employers are proposing commission only compensation packages for both domestic and international franchising sales professionals. The danger if the individual accepts this package is realizing most of these sales professionals are likely accepting the program as a “stop gap” until they locate a position with greater security in compensation. Although the temptation may be there for the company to control fixed labor costs, keep in mind that these individuals are still looking and as the economy turns, or a better opportunity arises, they will be gone. The result means continued inconsistency in the sales program, lost sales and an inability to attract top talent in the future. Beware not to be Penny Wise and Pound Foolish!
For greater understanding into maximizing individual performance through compensation call Peter Capodice at 941-906-1990 of email at peter@capodice.com.
Capodice & Associates
www.capodice.com
941-906-1990
Wednesday, January 14, 2009
Upgrade! Upgrade! Upgrade!
During the Restaurant Finance & Development Conference this past November, it was evident in panel discussion after panel discussion, that the companies who have weathered the economic downturn the most successfully are the one’s who were and continue to be aggressive in evaluating and upgrading their management teams, from unit level through CEO.
We have not in our lifetime seen an opportunity of this magnitude to acquire the level of talent available today. To survive this downturn and position your business for a consumer who’s expectations continue to rise, ensuring all team members are exemplar performers and work as a team is no longer is an option. You must take this advantage to upgrade your company’s human capital now!
Over the past year Capodice & Associates has expanded its database to more than 28,000 working executives across all disciplines within the restaurant and franchising industries. Additionally Capodice & Associates is the only Executive Search Firm to have developed a database of top industry performers based on the worlds leading behavioral assessment method. I encourage you to call and discuss how Capodice & Associates can objectively measure/evaluate your current team and position your business for the future. Call today and learn how you can get a free snap-shot of the strengths and weaknesses of your senior management team.
About Capodice & Associates
From a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Contact Us
Capodice & Associates
Midtown Plaza
1243 S. Tamiami Trail
Sarasota, Florida 34239
941-906-1990 Phone
941-906-1991 Fax
EMAIL US
www.capodice.com
We have not in our lifetime seen an opportunity of this magnitude to acquire the level of talent available today. To survive this downturn and position your business for a consumer who’s expectations continue to rise, ensuring all team members are exemplar performers and work as a team is no longer is an option. You must take this advantage to upgrade your company’s human capital now!
Over the past year Capodice & Associates has expanded its database to more than 28,000 working executives across all disciplines within the restaurant and franchising industries. Additionally Capodice & Associates is the only Executive Search Firm to have developed a database of top industry performers based on the worlds leading behavioral assessment method. I encourage you to call and discuss how Capodice & Associates can objectively measure/evaluate your current team and position your business for the future. Call today and learn how you can get a free snap-shot of the strengths and weaknesses of your senior management team.
About Capodice & Associates
From a dynamic blend of professional search talent, to the most comprehensive assessment tools on the market, Capodice & Associates gives you peace of mind knowing your next hire will be a long-term success.
Contact Us
Capodice & Associates
Midtown Plaza
1243 S. Tamiami Trail
Sarasota, Florida 34239
941-906-1990 Phone
941-906-1991 Fax
EMAIL US
www.capodice.com
Subscribe to:
Posts (Atom)