California Centers

SEP 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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Page 46 of 56

CORPORATE ACTIONS 40 California Centers Magazine | September 2018 Erik Oberholtzer in the position, who was named Executive Chairman of the brand. Tender Greens plans to triple in size, from approx. 28 locations in the coming four years. Bruno, with Tender Greens since 2017, was formerly with Apple during the growth of the brand's retail business., and has also held executive positions at Peet's Coffee, Drybar, Macy's and Design Within Reach. Jim Auther, formerly with Coldwell Banker Commercial Advisors, has joined Kidder Mathews as Senior VP in the firm's Orange County office. In this role, the veteran retail broker specializes in the sale and leasing of retail properties. Auther brings over 42 years of experience in retail commercial brokerage and development to the position, NPC International, the largest domestic franchisee for Pizza Hut and Wendy's, has restructured its leadership. CEO Jim Schwartz has transitioned to Chairman and Troy Cook, CFO, has become Vice Chairman of the company. Industry veteran Steve Layt, who joined the company in April, has assumed day to day responsibilities as President and CEO of its Pizza Hut division. Howard Schulz, who built Starbucks into a global presence over four decades, has stepped down as Executive Chairman and a member of the board of directors as of June. He has been given the title of Chairman Emeritus. He left the role of CEO in 2017, and was succeeded by CEO Kevin Johnson. Peet's Coffee & Tea has named Kenneth C. Keller Jr. as its new CEO. He replaces Dave Burwick as of August. Burwick had been CEO since 2012. Keller previously was a global president of Wm. Wrigley Jr. Company, a subsidiary of Mars Inc. Mars Parent JAB Holding Co. noted that during the integration of Wrigley into Mars, Keller established the global business units and strategy for the combined confectionery business. Dunkin' Brands has named David Hoffman, with the company since 2017, as CEO. He also serves on the company's board of directors and remains President of Dunkin' Donuts U.S., a role he has held since 2016. Nigel Travis has retired as CEO, a position he held since 2009. Travis remains active at the company as Executive Chairman, focused on international business. CONTRACTS & AWARDS CBRE has been selected by National Real Estate Advisors as the property management team for retail and office components at The Bloc, a $250 million, mixed-use redevelopment project underway between Hope and Flower Streets in downtown Los Angeles. The Bloc will feature a 420,000 sq.ft. open- air urban retail center, 722,000 sq, ft. office tower and remodeled luxury Sheraton Grand hotel. CURRENT EVENTS In August, Chili's reported its best performance in the past three years, among which was same-store sales gains of 0.6 percent and positive comp traffic of 0.8 percent for the fourth quarter. In the fourth quarter, Chili's traffic outperformed the industry by more than 200 basis points. The positive financials follow a period of strategic steps aimed at increasing sales and traffic over the long term. Among recent changes: providing service faster, better food, and better pricing. Going forward, the chain intends to aggressively increase its delivery and carry out business segments, including working with partners and suppliers to streamline the process and improve the guest experience. McDonald's and its franchisees are set to invest $6 billion on the construction remodeling and modernization of the majority of its restaurant locations by the close of 2020. Subway has begun an $80 million Fresh Now program to include new menu boards, uniforms and beverage offerings, at no cost to participating franchisees. The merchandising program will ideally showcase the chain's efforts at industry innovation. Jack In The Box has disclosed it will invest up to $45 million to enhance its drive-thru lanes and remodel in order to increase sales and improve efficiency at the drive-thru. The Supreme Court of California has ruled against Starbucks for not compensating a supervisor for "off the clock" closing duties. The decision could set a precedent in the state, as federal labor laws do not protect employees in similar cases. The high court ruled that the Federal Fair Labor Standards Act particulars regarding this matter do not apply in California, and that the plaintiffs claim involves "nontrivial, regularly occurring periods of work." Starbucks plans to appeal the court decision. San Francisco lawmakers have approved a measure banning the use of plastic straws and other non-recyclable plastic items. Seattle, Vancouver and Berkeley were among the first to adopt similar measures. The measure also includes language banning food containers that are made using fluorinated chemicals (commonly used in takeout packaging). Environmental advocates note that the chemicals repel oil and water and do not break down in compost. If it passes final approvals, the measure would go into effect July 1, 2019, and would additionally require that napkins, utensils and other to-go items be provided only on request. In-N-Out lost an appeal of a National Labor Relations Board decision that called the company's ban of wearing a "Fight for $15" pin unlawful. The U.S. Court of Appeals for the Fifth Circuit made the decision in July upholding a ruling by the NLRB stating that the restaurant cannot ban employees from wearing pins on their uniform that promote higher wages for quick- service workers. In-N-Out's attorney said he would petition the decision at the U.S. Supreme Court.

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