Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 24, 1993 TAG: 9307240114
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
SOURCE: Knight-Ridder/Tribune
DATELINE: MIAMI LENGTH: Medium
Burger King's new chief executive, 45, has a background in retailing and is expected to refocus the company by emphasizing its traditional restaurant business and introducing value-conscious pricing.
"Barry certainly has done with Burger King what Grand Met promised we would do: turn it around," said Mary Carroll, spokeswoman for Grand Metropolitan Plc, Burger King's London-based parent. "It is the next logical step that Adamson, the great operations guy, take over for the next Burger King phase."
Gibbons, 47, who will remain with Grand Met, retains the title of Burger King chairman. Grand Met owns a number of high-profile brands, including Smirnoff, Bailey's and J&B liquors, Haagen-Dazs and Green Giant frozen foods. Its other major retail chain is Pearle Vision Centers.
The Burger King franchisees, which make up 85 percent of the company's restaurant system, greeted the news with optimism.
"With Adamson, we very much like what we see," said Jerry Ruenheck, president of the Burger King National Franchisee Association. "He's tough but absolutely honest, and we believe he really cares about the franchisee community."
"I don't think it'll have a major impact unless the new guy brings in a new market," said David Drewery, manager of the Hardy Road franchise in Vinton. "We've seen a lot of innovative products hit the market with Burger King in the past few years. Gibbons wasn't afraid to try new ideas. I think the menu strategy went away from us just serving hamburgers."
Gibbons leaves Burger King far healthier than when he arrived in January 1989. During Gibbons' tenure, the number of restaurants increased 1,000 to 6,800 worldwide. U.S. restaurant profitability has risen 50 percent and Burger King's 1992 sales have reached $6.4 billion, up 12 percent since 1989.
But some franchisees were critical of Gibbons' sometimes abrasive style.
Gibbons, who once in jest called his management style "to keep a very light grip on the throat," took over leadership of Burger King at one of the lowest periods in its history.
Grand Metropolitan had just acquired Minneapolis-based Pillsbury Corp., which included Burger King, in 1988. The fast-food chain was considered by many analysts to be the "poison pill" in the deal. Its sales and market share were falling, profits were down and the company had gone through four chairmen, six presidents and six marketing directors in eight years.
Gibbons immediately set about streamlining the company and improving corporate systems.
His first step was to address the deeply unhappy franchisee community, recognizing the National Franchisee Association as their sole voice.
He established a series of restaurant measurement standards and took underperforming restaurants out of the system.
And he retooled the chain's food distribution systems, establishing Restaurant Services Inc., a chainwide purchasing cooperative that allowed the restaurants to leverage their collective buying power.
He dramatically streamlined Burger King's corporate offices, laying off 550 employees and cutting expenses 15 percent.
When Hurricane Andrew slammed into South Florida and Burger King lost its headquarters and about 300 employee homes, Gibbons led the rebuilding effort, turning the company's lawns and parking areas into relief centers.
"Barry has turned Burger King from the poison pill into one of Grand Met's outstanding brands," said Dick Fors, a Buffalo, N.Y.-based franchisee who has 50 restaurants. "He's had to make some unpopular decisions, but he's a real systems guy and he's done exactly what Grand Met asked him to."
Staff writer Celeste Katz contributed to this story.
by CNB