Article
Five QSR execs to watch in 2010
The industry still faces a number of economic challenges this year, and these leaders can move their brands through them.
January 7, 2010
* Click here for a slideshow of the following executives.
The quick-service segment faces a number of challenges in the coming year as brands await an economic recovery. Many execs of the leading QSRs have tackled economic crises before, but succeeding in the current downtown will take a higher level of nimbleness and patience.Just who will likely bring their brand to the top of the stack this year? Read on for QSRweb's take.
David Novak, president, CEO and chairman of the board of Yum! Brands: Named one of the Top 100 CEOs in the world by the Harvard Business Review, Novak has demonstrated the depth of his business acumen during his nine years leading the largest QSR company.
Novak sees what's ahead, and it isn't pretty. He's already warned investors that 2010 will be a tough year. U.S. same-store sales at Yum!'s top brands have fallen during the recession, especially at Pizza Hut, which saw comps down 13 percent for the third quarter. Pizza Hut will try boosting sales with $10 pizzas, while KFC is counting on its Kentucky Grilled Chicken to provide more sales lift. Taco Bell is looking to expand its reach, testing breakfast and rebranding its better-for-you line as the Drive-Thru Diet.
But the biggest opportunity for the company is overseas. India is a hot market for the company, with 1,000 stores planned for its top three brands over the next five years. The international units will see the most growth while the U.S. stores fight for market share.
Roland Smith, president and CEO of Wendy's/Arby's Group, CEO of Wendy's: Smith made the merger of Wendy's and Arby's a smooth one and has already brought new life to the once-stagnant burger chain.
As CEO of Wendy's, Smith's new vision seems to be putting the No. 3 QSR brand back on track after several years of floundering in the post-Dave Thomas era.
Since the merger, Wendy's has ramped up its product development department, is retooling its breakfast program and hired a new creative team. Boneless chicken wings, a new bacon burger and spicy chicken nuggets are just the start of a host of product innovations.
As CEO of WAG, Smith — like Novak — sees the brands' biggest opportunity for growth internationally, including trying out co-branded stores. The company also is shopping for a third brand to expand its multi-brand opportunities, and news reports have speculated Krispy Kreme may be top on the list.
Nigel Travis, CEO of Dunkin' Brands, president of Dunkin' Donuts: Travis has cleaned house since transitioning to Dunkin' Brands from Papa John's. As CEO of the donut and ice cream portfolio, he has hired new legal counsel as well as new marketing, branding, human resources and communications officers for Dunkin' Donuts. He also has taken on the role of president following the resignation of William Kussel. At Baskin-Robbins, he has added new branding and marketing officers.
With a new team behind him, Travis has said he wants the company to be operations-focused. His goal is to open more units for both of the franchise-owned brands and give franchisees all the tools they need to be successful.
Dunkin' Donuts is also close to becoming a true national brand as it expands out of the Northeast, particularly in Western U.S. markets. Baskin-Robbins added soft serve and is testing a fast casual concept, B-R Express. The company sees opportunities for both brands in China.
Linda Lang, CEO and chairman of Jack In the Box Inc.: Lang worked her way up from the accounts payable department to taking the helm in 2005. Since that time, she has overseen aggressive refranchising and reimaging programs and improved the company's cost structure. In 2009, the company underwent a clever rebranding campaign that leveraged social media as fans rooted for the recovery of the chain's mascot after being hit by a bus.
Comps at Jack in the Box and its fast casual fresh-Mex chain Qdoba have been down during the recession. But the brands have taken a number of steps to combat sagging sales, including adding value offerings.
Despite the tightened credit environment, Lang expects the company to reach its goal of being at least 70 percent franchised by 2013. She also has the company focused on growth, with the goal of someday becoming a national brand. Despite the recession, the brand continues to open in new markets and focus on innovations.
McDonald's CEO heir apparent – The No. 1 burger chain seemed to have a succession plan in place for CEO Jim Skinner's eventual retirement in Ralph Alvarez, the company's president and chief operations officer. But when the heir apparent resigned for health reasons last month, industry experts were left to speculate who will be next in line to replace Skinner, 65.
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- Hennequin, a native Frenchman, has led the European division since 2005, helping it become one of the company's strongest. In France, for example, he muted the brand's colors, created a more welcoming in-store experience and added regional menu offerings.
- Fenton, who started as a crew member at age 16, has overseen the 8,200 units in 38 countries in the Asia-Pacific region since 2005. He has led the turnaround of the brand's China market, centralizing and improving operations.
- Thompson, one of the highest ranking African Americans in the U.S. restaurant industry, began his McDonald's career in 1990 as an electrical engineer. Thompson has helped the U.S. division recover from its early 2000s doldrums, including a reimaging program.
Skinner has led the company since 2004, when he took over after two other CEOs died after short stints of leadership.
Update: On Jan. 11, McDonald's announced that Thompson was named the company's new president and chief operating officer, making him the eventual successor to Skinner.
Burger/Steak/BBQInternational FranchisingSandwichCoffee/Bakery/DonutFranchisingOperationsFood & Beverage
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