Lake Forest-based Del Taco LLC has named a new chief executive as its boss for the past three months is leaving to run the parent company of T.G.I. Friday’s and Pick Up Stix.
Paul Murphy, previously chief executive at Colorado’s Einstein Noah Restaurant Group Inc.,operator of Einstein Bros. and Noah’s Bagels,is Del Taco’s new chairman and chief executive.
Murphy replaces Nick Shepherd, who ran Del Taco as chairman and chief executive of its parent company, Nashville, Tenn.-based Sagittarius Brands Inc.
Shepherd is departing later this month for Carlson Restaurants Worldwide Inc., a Dallas-area restaurant operator that bought San Cle-mente’s Pick Up Stix in 2001.
Shepherd replaces former Carlson chief executive Richard Snead who recently retired after a three-month leave of absence.
Shepherd faces a challenge at Carlson: T.G.I. Friday’s has been particularly hard hit by the recession as diners opt for cheaper meals or stay home.
“(Shepherd) is a proven leader and has the ability to lead businesses through adverse marketing conditions,” said Hurbert Joly, chief executive of Minnesota-based Carlson Cos., parent of Carlson Restaurants.
Del Taco, a quirky Mexican-flavored burger chain with $500 million in yearly sales, has had a rocky past year with top-level management changes.
Sagittarius Brands acquired Del Taco in 2006. Shirlene Lopez, who started her tenure at Del Taco by mopping floors and wiping tables at its predecessor Naugles, ran the company as president and chief operating officer after the acquisition.
Shepherd joined as Sagittarius chief executive in early 2008, after serving as chief operating officer at Dallas-based Blockbuster Inc.
The Englishman brought a British corporate pedigree that included stints at Whitbread PLC, a hotel and restaurant operator, and Allied Lyons PLC, a retail, food and drink manufacturing company.
Lopez, after reporting to Shepherd for about eight months, left her position in November.
Shepherd moved from Dallas and made his home in Laguna Beach late last year when he took over Del Taco.
He isn’t looking to move from Laguna and plans to commute to the Dallas area. He previously commuted from his former home in Dallas to Sagittarius headquarters in Nash-ville.
Shepherd’s decision to take over Carlson Restaurants came after he received an offer he couldn’t refuse, ac-cording to Del Taco spokeswoman Barbara Caruso.
“The opportunity came up and he couldn’t turn it down,” she said. “The truth is he’s a bigger company type of guy.”
Murphy will take over Del Taco in mid-February and report directly to the Sagittarius board of directors. The job of Sagittarius chief executive held by Shepherd won’t be filled.
Murphy was on a short list back in early 2008 to take over Del Taco, Caruso said.
“Paul was someone Sagittarius was looking at around the time they were looking at Nick,” Caruso said. “Though at the time, they would have had to steal him from Einstein.”
Murphy retired from Einstein in December after serving as chief executive since 2003.
“Paul was the first choice and it was easy because he was looking for something new,” Caruso said.
Einstein has about $375 million in yearly sales.
When Murphy joined, the company was struggling. He oversaw its expansion from about 500 bagel stores to 700.
Sagittarius Brands is hoping for something similar.
“That mid-range sweet spot is what Del Taco needs,” Caruso said.
Del Taco spent the past six months evaluating and building development plans for restaurants, according to Shepherd.
The chain now has about 500 company-owned and franchised restaurants in 18 states. Most are in California.
In December, Shep-herd said his goal for Del Taco was to double revenue to $1 billion a year in the next five years.
It was unclear last week if Murphy planned to relocate here from Colorado.
Sagittarius also promoted David Head to chairman and chief executive of its other restaurant chain, Nashville-based Captain D’s Seafood Kitchen.
Head had been president and chief operating officer since 2006.
Like Murphy, Head will report to directors at Sagittarius.
