Buddy Holly
08-16-2008, 01:53 AM
New Souper Salad CEO has his orders: Grow
David Hendricks
As some restaurants close because of consumer belt tightening, higher food costs and ever more competition, a San Antonio company managing two large chains has brought in a chief executive with orders to expand.
The name of the company might surprise San Antonians. It is Souper Salad Inc., which operates the salad-soup-and-pasta chain and also has acquired the Grandy's home-style cooking restaurant chain.
Privately held Souper Salad Inc. runs 151 locations in 17 states. Eighty-one of the restaurants are in the Souper Salad chain, all corporate-owned except for one franchised Souper Salad. The rest are Grandy's restaurants, with only five corporate-owned.
In number of restaurants, Souper Salad Inc. has surpassed Luby's Inc.'s 123 cafeterias, the public company that moved its headquarters to Houston from San Antonio in 2004. Luby's still employs more workers, 7,500, compared with the 2,500 at Souper Salad and 2,000 at Grandy's.
Two private equity firms, Sun Capital Partners Inc. and an unidentified silent partner, own Souper Salad Inc. The Souper Salad chain dates back 30 years. It started in Houston before moving its headquarters to San Antonio.
Sun Capital Partners of Boca Raton, Fla., acquired Souper Salad in 2005 from SKM Investment Group in New York. Grandy's was acquired out of bankruptcy 16 months ago from Spectrum Restaurant Group in California.
With the hiring of CEO Tim Taft, Souper Salad Inc. will embark on a new course, one of expansion mainly through franchising. Taft has a history of restaurant successes. He most recently headed the 350-store Pizza Inn Inc., where he reversed a six-year decline in same-store sales.
His actions included outsourcing Pizza Inn's distribution network and healing strained relationships with franchisers. Before Pizza Inn, Taft spent more than 10 years at Whataburger Restaurants, including five years as president and CEO of the 640-store chain.
His strategy for Souper Salad Inc. is to attract new franchisers to both Souper Salad and Grandy's by adding locations in existing cities and gradually expanding geographically to new markets. To keep distribution costs efficient, Taft will resist having new stores spring up far from existing markets.
Although Taft has no numbers in mind, Souper Salad Inc. will expand in San Antonio. No Grandy's are here now. “San Antonio needs a number of Grandy's,” Taft said. “I'm not opposed to corporate-owned Grandy's restaurants here.”
Taft also wants to add to the four existing Souper Salads in San Antonio, including a new one more centrally located than the others, all outside Loop 410. Souper Salad closed its Alamo Heights location about three years ago because the parking lot, a block away and up a steep incline, hurt business. That Souper Salad had occupied part of a former Luby's.
Taft will introduce a prototype for new Grandy's restaurants and will remodel existing ones. The continuing emphasis at Souper Salad will be its concept of fresh food with no trans fat or monosodium glutamate. New menu items will be introduced over time, he added, along with extra services, including take-out and catering.
“This will be an effort to create a desirable destination for future franchisees and make them successful,” Taft said.
The Souper Salad Internet site markets single-restaurant franchise fees of $29,500. The initial investment required for a franchise will range between $575,700 and $865,200, not counting lease costs.
Taft noted the recent news that Metromedia Restaurant Group in Plano has closed its Bennigan's and Steak & Ale restaurants, although the chains' franchise-owned restaurants remain open, including four Bennigan's locations in the San Antonio area.
“A lot more of that will happen before this is over,” Taft warned.
He intends for his San Antonio company to head the other way.
[email protected]
http://www.mysanantonio.com/business/columnists/david_hendricks/new_souper_salad_ceo_has_his_orders_grow100.html
David Hendricks
As some restaurants close because of consumer belt tightening, higher food costs and ever more competition, a San Antonio company managing two large chains has brought in a chief executive with orders to expand.
The name of the company might surprise San Antonians. It is Souper Salad Inc., which operates the salad-soup-and-pasta chain and also has acquired the Grandy's home-style cooking restaurant chain.
Privately held Souper Salad Inc. runs 151 locations in 17 states. Eighty-one of the restaurants are in the Souper Salad chain, all corporate-owned except for one franchised Souper Salad. The rest are Grandy's restaurants, with only five corporate-owned.
In number of restaurants, Souper Salad Inc. has surpassed Luby's Inc.'s 123 cafeterias, the public company that moved its headquarters to Houston from San Antonio in 2004. Luby's still employs more workers, 7,500, compared with the 2,500 at Souper Salad and 2,000 at Grandy's.
Two private equity firms, Sun Capital Partners Inc. and an unidentified silent partner, own Souper Salad Inc. The Souper Salad chain dates back 30 years. It started in Houston before moving its headquarters to San Antonio.
Sun Capital Partners of Boca Raton, Fla., acquired Souper Salad in 2005 from SKM Investment Group in New York. Grandy's was acquired out of bankruptcy 16 months ago from Spectrum Restaurant Group in California.
With the hiring of CEO Tim Taft, Souper Salad Inc. will embark on a new course, one of expansion mainly through franchising. Taft has a history of restaurant successes. He most recently headed the 350-store Pizza Inn Inc., where he reversed a six-year decline in same-store sales.
His actions included outsourcing Pizza Inn's distribution network and healing strained relationships with franchisers. Before Pizza Inn, Taft spent more than 10 years at Whataburger Restaurants, including five years as president and CEO of the 640-store chain.
His strategy for Souper Salad Inc. is to attract new franchisers to both Souper Salad and Grandy's by adding locations in existing cities and gradually expanding geographically to new markets. To keep distribution costs efficient, Taft will resist having new stores spring up far from existing markets.
Although Taft has no numbers in mind, Souper Salad Inc. will expand in San Antonio. No Grandy's are here now. “San Antonio needs a number of Grandy's,” Taft said. “I'm not opposed to corporate-owned Grandy's restaurants here.”
Taft also wants to add to the four existing Souper Salads in San Antonio, including a new one more centrally located than the others, all outside Loop 410. Souper Salad closed its Alamo Heights location about three years ago because the parking lot, a block away and up a steep incline, hurt business. That Souper Salad had occupied part of a former Luby's.
Taft will introduce a prototype for new Grandy's restaurants and will remodel existing ones. The continuing emphasis at Souper Salad will be its concept of fresh food with no trans fat or monosodium glutamate. New menu items will be introduced over time, he added, along with extra services, including take-out and catering.
“This will be an effort to create a desirable destination for future franchisees and make them successful,” Taft said.
The Souper Salad Internet site markets single-restaurant franchise fees of $29,500. The initial investment required for a franchise will range between $575,700 and $865,200, not counting lease costs.
Taft noted the recent news that Metromedia Restaurant Group in Plano has closed its Bennigan's and Steak & Ale restaurants, although the chains' franchise-owned restaurants remain open, including four Bennigan's locations in the San Antonio area.
“A lot more of that will happen before this is over,” Taft warned.
He intends for his San Antonio company to head the other way.
[email protected]
http://www.mysanantonio.com/business/columnists/david_hendricks/new_souper_salad_ceo_has_his_orders_grow100.html