Wendy’s International, Inc. completes reorganization of
Restaurant Operations Leadership Team
Near and Choe will lead Operations for 6,750 restaurants around the world
CONTACT:
DUBLIN, Ohio (July 19, 2006) – Wendy’s International, Inc. (NYSE: WEN) announced today that it has completed the reorganization of its North America restaurant operations leadership team.
“Superior operations has been a hallmark of Wendy’s® for three decades and we’ve taken steps to ensure that we have an exceptionally strong leadership team for our entire system of company and franchised restaurants,” said interim CEO and President Kerrii Anderson.
The first step in the reorganization was the appointment of Dave Near as Wendy’s chief operations officer on May 1. Near is responsible for Wendy’s U.S., Canadian and International restaurant operations – both franchise and company.
“Dave and I are focused on driving initiatives to improve operations, sales and profits in every Wendy’s restaurant,” said Anderson. “Dave has made an immediate impact, demonstrating dynamic leadership over the past two months with our employees and franchisees. I’m thrilled with his passionate approach to the business.”
Since the appointment of Near, the Company completed additional management appointments and realigned its U.S. field structure from five to three regions. The management appointments include:
- Ed Choe has been appointed executive vice president of restaurant services. Choe, 46, is responsible for leading several key corporate and field departments that support and directly impact restaurant operations. Choe was senior vice president of the Northeast Division and is a 25-year Wendy’s veteran.
- Replacing Choe as senior vice president of the Northern Region is Tom Spero. Spero, 48, joined the Company as a franchise area director in 1995 and was promoted to a Company director of area operations in the New York area the next year. He was promoted to division vice president in 2000. Spero is a proven operator and is a former award winner as the top Company operator in the Northeast.
- Continuing as senior vice president leading the Southern Region is Ed Austin. Austin, 48, is an excellent leader with deep experience in the Wendy’s system for more than 25 years. He is in Wendy’s Hall of Fame.
- John Peters is being promoted to senior vice president of the Western Region. Peters, 50, was a division vice president in Dallas, and is part of a region that has tested many new products as well as new operational procedures. He joined Wendy’s in 1983 as an assistant manager. He’s served as both a franchise area director and director of area operations, and other leadership positions. Peters also has received an award for his operational excellence.
- Neil Lester, 52, will continue as senior vice president for Wendy’s in Canada, where there are 380 restaurants.
- Jim Hartenstein, 54, will continue as senior vice president for Wendy’s International business, which includes approximately 350 restaurants outside of North America.
“I am extremely confident with the team we have assembled to lead Wendy’s operations – for our company restaurants and with our franchisees,” said Anderson. “This is a dynamic team with deep experience. We are motivated to improve Wendy’s operations and differentiate our brand with customers at the restaurant level. Dave Thomas always said we should exceed customer expectations every day. That’s our goal.”
Wendy’s Division Vice Presidents in place under Senior VPs
The Company also realigned its divisional structure, and the following division vice presidents will lead the 10 divisions:
- The Northern Region includes veteran operators Ed Rafter, John Bowie, Ron Johnson and Don Hurrell. All four were previously division vice presidents.
- The Southern Region includes Matt Kennedy, Jose Ribas and Mickey Moore. All three were previously division vice presidents.
- The Western Region includes Mike Gist, Chris Hutchinson and Diane Weed. Weed was previously a division vice president while Gist and Hutchison were promoted from director of area operations positions.
- Continuing as division vice presidents are Hanif Adatia and Peter Moses in Canada.
- Ben Mansoor and Bill Valentine continue as regional vice presidents in the International division.
As part of the current reorganization under way at Wendy’s and its “Next Chapter” program to reduce costs by $100 million, certain managers are leaving the Company.
Two senior vice presidents have elected to take early retirement – Steve Farrar and Joyce Eufemi. Both are members of Wendy’s Hall of Fame.
Senior Vice President Dennis Farrow has decided to leave Wendy’s and has accepted a position with another company, effective September 5.
Two division vice presidents have also elected to take voluntary early retirement – Eric Colah and Bill Radebaugh.
“Everyone in the Wendy’s system thanks Steve, Joyce, Dennis, Eric and Bill. We wish each of them all of the best as they retire or move onto new opportunities. Our paths may cross again as we consider opportunities in our franchise system,” said Near. ”One of their legacies is the role they had in building a deep bench and mentoring the individuals who are stepping into broader leadership roles. We are fortunate to have so much talent in the Wendy’s family.”
Dave Near Background
Near, 37, was president of Wendy’s Franchise Advisory Council (FAC) in 2005 and was re-elected to the position by fellow franchisees in 2006. A majority of FAC members are elected by franchisees and the group works closely with management to continually improve restaurant operations and business results.
Near and his brother, Jason, have operated Wendy’s restaurants as franchisees in the Austin, Texas market since 1995. They now have 29 restaurants generating approximately $42 million in sales with average unit volumes of nearly $1.5 million, which is higher than the company’s system average of $1.3 million. Dave was president of the franchise business called Pisces Foods.
Near graduated from Duke University with a B.A. degree and has an MBA from The Fuqua School of Business at Duke. He also worked for Coca-Cola Fountain/USA.
Dave Near’s father, Jim Near, was formerly chairman, CEO and president of Wendy’s.
Ed Choe Background
Choe was senior vice president of Wendy’s Northeast Region, which has 1,100 Company and franchise restaurants.
He now leads the Restaurant Services Department which includes Operations Training, Quality Assurance and Operations Administration as well as other units to be created as a result of the Company’s reorganization.
Choe is a proven operator whose restaurants have some of the highest average unit volumes in the system. Choe joined the Wendy’s family 25 years ago, starting as a manager trainee with Wenco, a franchisee in the metropolitan New York/New Jersey area. Choe became chief operating officer, overseeing 45 restaurants, before he joined the Company as divisional vice president when the franchise was acquired in 1997. Choe simultaneously oversaw the conversion of more than 40 Roy Rogers restaurants into the Wendy’s brand. In 2000, he was promoted to senior vice president for the Northeast Region. He has won numerous awards throughout his career, including “Top 50 Entrepreneur of Long Island,” multiple “Designated Marketing Area (DMA) of the Year” selections, and the prestigious Wendy’s “Golden Eagle” award as the top regional operator.
Safe Harbor statement
Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, is forward looking. Factors set forth in our Safe Harbor under the Private Securities Litigation Reform Act of 1995, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company’s Safe Harbor statement at http://www.wendys-invest.com/safeharbor.
Wendy’s International, Inc. overview
Wendy's International, Inc. is one of the world's largest restaurant operating and franchising companies with more than 9,900 total restaurants and quality brands, including Wendy's Old Fashioned Hamburgers® and Baja Fresh®Mexican Grill. The Company also has investments in three additional quality brands – Tim Hortons®, Cafe Express and Pasta Pomodoro®. More information about the Company is available at www.wendys-invest.com.
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