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October 2006 |
Volume 7, Issue 10, Part 1 |
 Wendy's International Inc. announced that it has agreed to sell its 300-unit Baja Fresh Mexican Grill chain for $31 million to an investment consortium led by David Kim, a West Coast franchisee of Denny's and Cinnabon. Wendy's bought the fast casual Baja Fresh brand in 2002 for about $275 million. A sale of the burrito chain had been expected as part of Wendy's plan to pare its holdings and focus on its namesake brand. The company spun off its remaining 82.7 percent stake in the Tim Hortons Inc. doughnuts business on Sept 29 through a stock distribution to the burger company's shareholders. Wendy's still holds an investment in Pasta Pomodoro, a San-Francisco based full-service Italian chain.
NYC Contemplates Trans-Fats Ban
 Three years after New York City banned smoking in restaurants, health officials are talking about prohibiting something they deem equally as hazardous, artificial trans fatty acids. The city health department unveiled a proposal this month that would ban cooks at any of the city's 24,600 food service establishments from using ingredients that contain the artery-clogging substance, commonly listed on food labels as partially hydrogenated oil. Artificial trans fats are found in some shortenings, margarine and frying oils and turn up in foods from pie crusts to French fries to doughnuts.
The proposal also would create a huge problem for national chains. Among the fast foods that would need to get an overhaul or face a ban: McDonald's French fries, Kentucky Fried Chicken and several varieties of Dunkin' Donuts. A similar ban on trans fats in restaurant food has been proposed in Chicago and is still under consideration. Wendy's announced in August that it had switched to a new cooking oil that contains no trans fatty acids. Additionally, McDonald's began using a trans fat-free cooking oil in Denmark after that country banned artificial trans fats in processed food, but it has yet to do so in the United States.
(miamiherald.com, 9/27/06)
 The Carl's Jr. hamburger chain has opened its first of two Russian restaurants in St. Petersburg in the Russian Federation. The chain, a subsidiary of Carpinteria-based CKE Restaurants, Inc., plans to open a total of 50 restaurants in the country over the next eight years. The two new Carl's Jr. locations are franchise operations through an agreement with Russia-based franchisee Bright Star LLC, which signed the deal with the chain last year.
The 50-restaurant development agreement between the US firm and Bright Star LLC is part of a CKE focus on international expansion that now counts more than 235 restaurants in 14 countries. The overseas operations are part of approximately 3,131 franchise restaurants and company-owned operations of Carl's Jr. and its sister CKE subsidiary, Hardee's. This total includes 1,072 Carl's Jr. restaurants, 1,945 Hardee's locations and 98 La Salsa Fresh Mexican Grill restaurants. In addition to its international expansion, CKE has continued its US growth as well, with plans announced earlier this year for 15 new Carl's Jr an d five new Hardee's between summer and the end of the year.
(Globest.com, 10/10/06)
 FedEx Kinko's is testing a retail format in Florida and Missouri that converts its traditional 6,000-square foot stores into places where customers can make copies, get a sign made, send a package and shop for a wide array of office supplies. Since launching the expanded retail concept 10 months ago, Dallas-based FedEx Kinko's has overhauled 20 stores in Orlando and St. Louis. The company also plans this new retail format in Indianapolis and Marina Del Rey, Calif. Next it plans to build a new-style store from the ground up in Memphis, home of its parent company, FedEx Corp.
At test stores, existing FedEx Kinko's customers may be surprised to find a Wi-Fi Bar, purple shopping carts and retail sales employees spread out across the sales floor. These stores also have upgraded shipping counters and installed features such as a conveyor belt that stretches from the store entrance to the shipping area to help customers with heavy loads. The 6,000 square-foot stores stock about 2,500 items, from presentation materials to mobile phone and computer accessories. Currently, FedEx Kinko's has 1,700 stores worldwide.
(Dallas Business Journal, 9/23/06)
 Spanish-speaking customers who order their Papa John's pizza can now add "cebollas" and "champinones" to their favorite pie, instead of selecting onions and mushrooms. For the last month, Louisville-based Papa John's International has been test-marketing an ordering system in Spanish on it Web site, www.papajohns.com, for its 2,600 stores in the United States. The company will be the first of the nation's three largest pizza businesses to offer the service. Papa John's hopes the campaign will help them gain an early lead in gaining Spanish-speaking consumers. The company also is considering online features in Asian languages in certain U.S. markets.
(courier-journal.com, 10/4/06)
 Deluxe hotel chains, boosted by an overall strength in the hotel industry, are piling billions of dollars into global expansion and renovation projects, in some cases at what the companies are calling unprecedented levels. Luxury hotels have benefited from increased demand boosted by the resurgence of corporate profits and hoteliers within this group are capitalizing on that demand. New property openings are in the pipeline both domestically and internationally for the major luxury chains including some properties that will be the second or more for a chain in certain markets.
For example, the Ritz Carlton Hotel Co. has seen a significant increase in its business travel usage as it has expanded into major markets. During the past seven years, the number of Ritz-Carlton properties has nearly doubled from 35 to 61, including such major business destinations as New Orleans, New York and Washington, D.C. Meanwhile, Four Season Hotels began the year by announcing intentions to increase its global reach with four new developing projects scheduled to open across the globe during the next few years.
(Business Travel News, 10/9/06)
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