Performance Food Group Company announced it has signed a definitive merger agreement to be acquired by an affiliate of The Blackstone Group and Wellspring Capital Management in a transaction valued at approximately $1.3 billion.

The Board of Directors of Performance Food Group has unanimously adopted the merger agreement and resolved to recommend that the Company’s shareholders approve the agreement. The transaction will be structured as a combination of Performance Food Group and Vistar Corporation, a foodservice distributor controlled by affiliates of Blackstone and Wellspring.

William F. Dawson, Jr., a partner at Wellspring said, “We are excited about the combination of Performance Food Group and Vistar, as it brings together two of the strongest companies and many of the best brands in the foodservice distribution industry. Performance Food Group has a history of consistent growth and has become one of the industry leaders. We believe that together with Vistar and the strong brands at Roma, the people of both companies will join to make the combined company stronger, more diverse and faster growing.”

The combined companies will be named Performance Food Group. The headquarters of Performance Food Group will remain in Richmond, Virginia. The headquarters of Vistar will remain in Denver, Colorado.

Hooters of America, Inc. announced that its oldest franchisee, R.M.D. Corp. of Louisville, Kentucky has reached an agreement for the sale of its assets to a corporation headed by one of its International Franchisee groups.

The buyer is an entity which controls the franchisee rights for Australia and New Zealand and currently operates two Hooters Restaurants in Australia. South Pacific Partners, Ltd (SPP) has entered into a letter agreement to acquire substantially all of the assets of R.M.D. Corp. (RMD). SPP is the operating arm of Australian Enterprises, L.P. (AE), the Hooters franchisee for Australia and New Zealand. On a combined basis, the new company will operate 41 Hooters restaurants and expects to open several locations in 2008. The acquisition is expected to close in the first quarter of 2008.

RMD is owned by Neal Harding, who opened the first ever Hooters franchise location in Louisville, Kentucky in 1988. Today the RMD franchise group consists of 39 Hooters in Indiana, Kentucky, Ohio, and Tennessee. The transaction includes the 39 restaurants, certain real estate holdings and the future development rights for Hooters within the four states. Mr. Harding will continue to be involved with the Hooters brand on the International front through his ownership of World Wide Wings, LLC, a company that owns 8 Hooters in Canada, England and the Caribbean.

“I am very excited about this transaction,” stated Coby Brooks, the President and CEO of Hooters of America, Inc. “Neal Harding has been a leader within the franchisee community. He was our first and finest franchisee. I can’t wait to see what he will accomplish now that he is able to focus his efforts exclusively on International expansion.”

Terms of the transaction have not been disclosed. Mastodon Ventures, Inc. an Austin, Texas based M&A advisory firm has been retained to advise AE and SPP in connection with the acquisition.

January 14, 2008 at Wolf Mountain Vineyards & Winery. For more information, visit www.garestaurants.org.

What will the year hold for Georgia’s restaurant industry?

January/February 2008

By Debby Cannon, Ph.D., CHE
Director, School of Hospitality
Robinson College of Business
Georgia State University

As this article is being written in late 2007, the drought conditions in Georgia are the major news story gaining national attention. Two thirds of the state, encompassing sixty-one counties, is under extreme and exceptional drought conditions. With La Ni�a conditions expected to persist, climatologists are not predicting a better picture for 2008 with drought conditions expected through spring and possibly summer in Georgia, Alabama and Florida.

How will the drought affect the restaurant industry in Georgia? While the impact on crops, food prices and the overall economy is not exactly known, it seems inevitable that there will be financial repercussions along with the restaurant and foodservice industry having to contribute to water conservation. With 8,000 of the state’s 11,000 restaurants located in the Atlanta area, part of the region hardest hit, the industry will no doubt be affected.

On a larger scale, the idea of water conservation is tied to numerous “green” issues that the restaurant industry is starting to address in a more unified, formalized way. The National Restaurant Association, along with state associations like Georgia’s, are making strides in sustainable recommendations – from recycling and waste management to energy conservation – and the implementation of these will increase significantly in 2008.

As Nation’s Restaurant News reported in October 2007, the evolution of greening the industry is progressing so quickly that it is a “moving target.” Utilizing recent technological advances that provide environmentally responsible results as well as a return on investment is an optimum outcome such as in saving on trash removal and utilities. One such example, being piloted in the United Kingdom, converts garbage from eleven McDonald’s restaurants into heating for 130 buildings thereby keeping over 1,200 tons of trash out of landfills each year.

Restaurant operators will be challenged to find the right balance in their green approaches. Not all solutions are dependent on the latest technology. Recycling food scraps to be turned into compost which can be sold to farmers and gardeners is an example of a low-tech green approach catching-on around the nation.

Another part of the sustainable movement includes the buy-local movement of purchasing regional products – which has also escalated around the nation. Also growing is the use of organic food. With statistics from a recent Harris Poll showing that a very large majority of the public believe organic food to be safer for the environment (79%) and healthier (76%), restaurants will increasingly react by including some organic products on the menu. While the regular buyers of organic food are still a minority, the percentage of such buyers is growing – particularly among certain age groups such as those 18 to 30 or Echo boomers and ages 31-42 or Gen Xers.

What other top issues and trends are likely to be seen in 2008? Employee issues have been at the top of the list for many years and will continue as a major concern in 2008 with the population of 46 million Baby Boomers starting to retire. Some experts predict that by 2010 there will be 10 million more jobs in the United States than people. The younger workforce (particularly those in the 25 to 34 range) is significantly smaller. This shift is coupled with expected job growth in Georgia’s restaurant industry. A 20.4% increase in jobs is expected between 2007 and 2017 taking the number of restaurant employees in Georgia from 382,500 to 460,400.

For an industry that has attracted younger workers, the changing labor force is a major concern. Now is the time to proactively plan ways to be at the forefront of selecting and retaining employees to competitively fight in what has been termed the “global talent war.” Companies who are likely to succeed will relate to the five factors recently found to be most important to younger workers in selecting employers: 1) Opportunities for advancement; 2) Good training responsibilities and the chance to develop new skills; 3) Good people to work with (co-workers); 4) Good people to report to (supervisors); and 5) Challenging work.

From the customer side, Georgia has a great opportunity to gain more of the culinary tourism market. The excursions of culinary travelers focus on unique and memorable eating and drinking experiences. This segment of travelers comprises one-fifth of the United States leisure market. With Georgia ranking as the eighth largest tourism economy in the nation, there are opportunities to attract and extend stays of visitors to experience the culinary distinctions and talents of the state. Partnerships between restaurants – from casual to fine dining – and state tourism organizations, local convention and visitors bureaus, travel publications and lodging properties will enhance the visibility of dining experiences in Georgia to capture the market share of these culinary explorers.

The National Council of Chain Restaurants (NCCR) is the leading trade association exclusively representing chain restaurant companies. For more than 40 years, NCCR has worked to advance sound public policy that best serves the interests of both chain restaurants and the millions of people they employ. NCCR members include some of the country’s largest and well respected quick-serve and casual dining companies.  The National Council of Chain Restaurants is a division of the National Retail Federation, the world’s largest retail trade group.

The U.S. Fund for UNICEF is launching a nationwide effort on World Water Day called the Tap Project, a campaign that celebrates the clean and accessible tap water available as an every day privilege to millions while helping UNICEF provide safe drinking water for children around the world.

The Tap Project will be a week long national campaign in March 2008, inviting communities around the country to pay $1 for the tap water they usually enjoy for free while dining at local restaurants.

To learn how to participate with this event, please send an email to tapprojectatl@yahoo.com

Texas Chicken, the international brand of U.S.-based Church’s Chicken continues to expand its brand overseas, as European Active Corporation (EAC) has been awarded the rights to open 100 restaurants over the next seven years in Russia, Belarus and Ukraine. The company recently opened stores in the Moscow and St. Petersburg markets.

“The key to long-term success in the restaurant industry is in international business,” said Harsha V. Agadi, CEO of Church’s Chicken. “Forecasted increases in commodities and rising labor costs in the US will have serious impact on operating margins domestically, so the challenge is to offset greater operational efficiency onshore while expanding overseas. ”

Although chicken is the primary meat consumed in Russia, adjustments were made to the menu to suit the local palate. For instance, seafood and ice cream are core menu items, the mashed potatoes are yellow in hue and the coleslaw is less sweet than the American version.

January 26, 2008 at Le Cordon Bleu Culinary College. For more information, visit www.acfatlantachefs.org.

Our mission is simple: to serve as the voice for Georgia’s Restaurants in Advocacy, Education and Awareness.  The GRA is sanctioned by the National Restaurant Association to operate Georgia’s only not-for-profit representing the state’s foodservice industry. From large chains to start-ups, the GRA helps make restaurants better for Georgia and Georgia a better place for restaurants to do business.

The real dollar value of GRA membership far exceeds the cost of dues, even if you only consider to cost of the political representation we provide. Add the many tangible benefits, and you’ll find membership is one of the best investments you can make.

The Georgia Restaurant Association represents an industry comprising over 16,000 foodservice and drinking places in the state of Georgia with total sales in excess of $14.7 billion and provides more jobs (384,300+) than any other non-government employer in the state.  For more information call 404.467.9000, or visit www.garestaurants.org.

The Cecil B. Day School of Hospitality is located in the highly ranked Robinson College of Business at Georgia State University.

The School offers three different programs:

> BBA degree with a major in Hospitality
> Certificate Program (a post-baccalaureate program) in Hospitality Operations, Event Planning and Meeting Planning
> An MBA degree with a concentration in Hotel Real Estate

Visit the School of Hospitality�s web site at www.robinson.gsu.edu/hospitality or call 404-413-7615.