Person to Watch: DAVID GORONKIN
David Goronkin’s hire in June 2011 as chief executive of Cypress-based Real Mex Restaurants Inc. was seen as a step in the right direction for the struggling restaurant operator.
Real Mex, which operated about 160 restaurants as part of the El Torito, Acapulco and Chevys Fresh Mex chains, among others, was in a three-year downward spiral on sales.
Goronkin’s experience with troubled chains offered cause for optimism. He arrived from Dallas-based Irish bar and grill concept Bennigan’s Franchise Co., which saw a turnaround under his watch.
Goronkin began a rebranding strategy focused on the company’s El Torito, Chevys and Acapulco brands that included menu updates and restaurant redesigns. The company filed for bankruptcy in October and was acquired by a group of creditors earlier this year.
Goronkin resigned a few months later and now heads up the San Diego-based Garden Fresh Restaurant Corp.’s Souplantation and Sweet Tomatoes chains.
—Kari Hamanaka
Companies to Watch: TROUBLED CHAINS
What a difference a year makes.
With so many companies facing a tough operating environment, we couldn’t pick just one chain to place on our watch list for this year.
Many chains here and nationally turned to new menu options, promotions and restaurant designs to turn heads and boost sales this year. The tactics worked for some.
The most noticeable improvement was seen at Irvine-based Taco Bell Corp.
Same-store sales of the Mexican fast-food chain fell 2% last year, dragged down by the prolonged effects of a lawsuit questioning the chain’s beef content, which was later dropped, and high food costs. The business showed some signs of improvement at the end of last year, and the momentum continued in 2012.
Taco Bell introduced a breakfast menu at the start of this year followed by the March launch of its Doritos Locos Tacos. The summer debut of the Cantina Bell Menu saw the fast-food chain reach for more upscale appeal with ingredients such as cilantro rice and black beans used in new burritos and bowls.
Taco Bell’s quarterly same-store sales have grown every quarter so far this year, with the most recent three-month period ended Sept. 8 up 7%.
Irvine-based Mimi’s Café continued to struggle with its sales slump and introduced a new bakery-café concept in October. Parent Bob Evans Farms Inc. of Columbus, Ohio, said in November that it was exploring a possible sale of the French-inspired chain.
Costa Mesa-based El Pollo Loco Inc. parted ways with its Hollywood-based advertising agency goodness Mfg. last December after less than a year. The chain canned the agency’s “Feel the Mexcellence” tag line in favor of new agency Butler, Shine, Stern & Partners of Sausalito in March and the tag line “Crazy You Can Taste.” A new restaurant design rollout is intended to help boost El Pollo Loco sales, which fell 2.2% in 2011 to $545 million, according to Chicago-based industry researcher Technomic Inc.
Real Mex Restaurants was bought out of bankruptcy by a group of creditors earlier this year. The restaurant chain operator is currently in search of a new chief executive to fill the shoes of David Goronkin, who left in May.
—Kari Hamanaka
5 Big Restaurants Stories
• Darden Restaurants buys Irvine-based Yard House chain for $585 million.
• Taco Bell Corp. makes a comeback as breakfast and Cantina menus help reverse sales slump.
• Real Mex Restaurants Inc. sells to creditors in deal valued at about $126 million for an 85% stake.
• Huntington Beach-based BJ’s Restaurants Inc. names Gregory Trojan president, with plans for him to become chief executive when Gerald Deitchle retires in February
• Steakhouse chain Sizzler USA moves headquarters from Culver City to Mission Viejo and lays out renovation, expansion plans.
