2004 the year in review: NRN looks back at the events that have affected the foodservice industry over the last 12 months

Nation's Restaurant News,  Dec 20, 2004  by Ron Ruggless

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SINCE BIBLICAL TIMES YEARS OFTEN HAVE BEEN LABELED either as those of feasts or those of famine. As far as news was concerned, 2004 had some of both, with a whole lot of diet and nutrition thrown in.

The year had heft and girth and gravitas, but mostly it was focused on obesity and the growing size of the American consumer. Diets--from Atkins to South Beach to low-carb to no-carb--were on the tips of people's tongues as foodservice providers attempted to appeal to many concerns.

The big news, it seemed, was that the American population was living off the fat of the land. But by year-end, much of the diet craze, or craziness, had subsided, and it was back to such basic concerns as operations, bottom lines and getting bottoms into seats, no matter what their size. And amid all of that, California was on the path to banning foie gras, while New York experienced the world's largest bagel.

The industry celebrated victories and mourned losses. There were closings of old concepts and openings of new, inventive ones.

The cycle of life continued.

What follows is Nation's Restaurant News' Year in Review for 2004: the high points, the low points and all the morsels of news in between.

JANUARY

Things were looking up for foodservice as January 2004 dawned.

An improving economy and the prospect of more money in consumers' wallets led industry observers to project solid sales in the year ahead.

The National Restaurant Association forecast that restaurant sales would rise 4.4 percent to $440.1 billion for 2004. The sales increases were predicted to be widespread geographically and evident across most industry segments.

The total of $440.1 billion "is a huge amount, 4 percent of the nation's gross domestic product," said Hudson Riehle, the NRA's senior vice president of research and information services. Riehle said the annual sales forecast averaged out to about $l.2 billion a day.

Yum! Brands, whose KFC chain has nearly 3,000 outlets in Asia, was seeking to ease concerns amid worries about an avian flu outbreak that had killed 10 people as of the end of January. The disease had killed or forced the slaughter of at least 11 million chickens in Asia. Yum said sales were holding up in Asian units, and none of its suppliers had been affected initially. But alternative supply lines were tapped at least temporarily as KFC's chicken sources, in Thailand, for example, were affected.

Lone Star Steakhouse and Saloon Inc. of Wichita, Kan., agreed to buy, 20 Texas Land and Cattle Steak House units out of bankruptcy, giving Lone Star a toehold in Texas with the casual-dining concept.

Blimpie International Inc. said it planned to open more than 100 Blimpie Xpress units in Wal-Mart stores this year.

Brinker International Inc. of Dallas debuted a panel of outside experts to advise the company on menu and nutrition trends and other dietary factors. The 1,400-unit casual-dining operator said its new Nutrition Advisory Council would guide the company on culinary development at all the company's concepts and also would analyze consumer research to help Brinker craft a long-term, comprehensive nutrition strategy.

Magic Restaurants LLC, parent of the 229-unit Fuddruckers chain, bought 18 Koo Koo Roo fast-casual restaurants for $5.1 million from Prandium Inc. of Irvine, Calif., which put the chain through a bankruptcy proceeding, as Prandium had done for itself in 2002.

The future of food irradiation as a food-safety precaution was clouded with the January bankruptcy liquidation of the nation's largest irradiation firm, SureBeam Corp. of San Diego. International Dairy Queen said it would stop selling burgers made with irradiated ground beef because of the bankruptcy.

Less than four months after taking the helm at Red Lobster in a leadership shake-up, former Darden Restaurants vice chairman Richard Rivera resigned.

Among other industry management changes in January, Ray Cabana resigned as president and chief executive of Buffalo's Franchise Concepts Inc. of Marietta, Ga.

Sonic Corp. of Oklahoma City promoted W. Scott McLain to executive vice president and chief financial officer.

Brinker International Inc. of Dallas named Rebeca Johnson senior vice president of marketing and brand development.

Outback Steakhouse Inc. of Tampa, Fla., promoted Paul Avery to president of the entire holding company and Bill Allen to the new post of president of West Coast chain concepts; the company tapped Ben Novello to succeed Avery as president of Outback.

Applebee's International Inc. promoted Dave Goebel to chief operating officer and promoted John Cywinski to executive vice president.

El Torito/Acapulco of Long Beach. Calif., named Steve Tanner chief financial officer and Julie Koenig vice president of marketing.

AFC Enterprises Inc. hired Frederick B. Beilstein as chief financial officer.

Papa John's International Inc. promoted Bill Van Epps to chief operations officer and elevated Julie Larner to president of PJ Food Service, the company's distribution division.