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Eleven Restaurant-Chain CEOs Stepped Down During the Pandemic Era

Original publication date
Apr 24, 2022
Archive status
Historical archive
Original source
FoodBud WeChat archive
Original publication source
FoodBud WeChat source
This is an English adaptation of a FoodBud historical article originally published on April 24, 2022.

Over roughly eight months spanning late 2021 and early 2022, 11 restaurant-chain CEOs stepped down, retired, resigned, or shifted roles. The list included global and listed operators such as Starbucks, Haidilao, Darden, Wingstop, and Denny's, as well as founder-led and family-controlled brands.

1. Chick-fil-A: Family Succession

In November 2021, Chick-fil-A CEO Dan Cathy stepped down and was succeeded by his son, Andrew Truett Cathy.

Dan Cathy had served as CEO since 2013. During his tenure, Chick-fil-A's annual revenue grew from about $1 billion to $16 billion.

Despite the pandemic, Chick-fil-A's average annual sales per store increased from $4.5 million in 2019 to $5 million in 2020. McDonald's average annual sales per store were $2.9 million in both 2019 and 2020.

2. El Pollo Loco: CEO Resignation

In October 2021, El Pollo Loco announced that CEO Bernard Acoca had resigned. CFO Laurence Roberts became interim CEO.

During Acoca's more than three years in the role, the company refreshed the brand and increased the share of sales from digital channels. It also invested in drone-delivery tests with a two-mile delivery radius, exploring a lower-cost model for short-distance delivery.

El Pollo Loco, Spanish for "The Crazy Chicken," was founded in Mexico in 1975 and entered Los Angeles in 1980. Headquartered in Costa Mesa, California, the chain specializes in citrus-marinated, fire-grilled chicken prepared in view of customers. Its menu includes items such as chicken burritos, chicken tacos, chicken tortilla soup, and Pollo salads.

3. Dave & Buster's: CEO Retirement

Brian Jenkins, CEO of Dave & Buster's, retired on September 30, 2021. Board chair Kevin Sheehan took over as interim CEO while the company searched for a successor.

Dave & Buster's was founded in Dallas, Texas, in 1982, combining dining, drinks, games, entertainment, and viewing experiences in large-format venues.

That model was heavily affected by the pandemic. In the second quarter of 2020, same-store sales fell 87% year over year, and the company laid off more than 1,300 employees.

A Dave & Buster's press release said Jenkins had led the company through the pandemic and restored record financial performance.

In April 2022, Dave & Buster's announced an agreement to acquire Main Event for $835 million, expanding its position in family entertainment. Main Event operates indoor entertainment venues offering activities such as bowling, climbing, and mini golf.

4. Darden Restaurants: Planned CEO Retirement

In December 2021, Darden Restaurants announced that CEO Gene Lee would retire on May 29, 2022. COO Rick Cardenas was named as his successor.

Lead independent director Charles M. Sonsteby said in a statement that during Lee's tenure, Darden's revenue increased by more than $2 billion, while its market value roughly tripled to nearly $20 billion.

5. Torchy's Tacos: Founder Returns

In March 2022, Torchy's Tacos founder Mike Rypka returned as CEO. Rypka had served as CEO from the company's founding in 2006 until 2018, and had been interim CEO after former CEO GJ Hart retired in November 2021.

From 2018 to 2021, Torchy's expanded from 45 stores to 96 stores. Even during 2020 and 2021, the company opened 26 new locations. Its average annual sales per store were $3.8 million.

In 2020, Torchy's Tacos raised new financing. Bloomberg reported that the company's valuation was $400 million.

In 2021, the company also hired Morgan Stanley and Bank of America to prepare for a listing. The article said the IPO could raise $300 million and push the valuation to $1 billion.

6. Wingstop: CEO Leaves After a Decade

In March 2022, Wingstop CEO Charlie Morrison resigned after leading the company for 10 years. He became CEO of Salad and Go. Wingstop COO Michael Skipworth succeeded him.

Under Morrison, Wingstop went public in 2015, and its share price recorded triple-digit growth. When Morrison took over, Wingstop had about 530 restaurants; by the time of the article, it had more than 1,700.

7. Fazoli's: CEO Retirement

In March 2022, Carl Howard, CEO of Italian fast-casual chain Fazoli's, retired. The article cited a back injury from the previous year that could require surgery and three to four months of recovery. Doug Bostick, previously senior vice president of operations and franchise development, succeeded him as CEO.

When Howard joined Fazoli's in 2008, the company was near bankruptcy, facing franchisee dissatisfaction and accelerated closures. After an 18-month overhaul, the chain moved from a 10% sales decline to flat sales. At the time of the article, Fazoli's had 220 stores.

In 2021, FAT Brands acquired Fazoli's for $130 million. The plan cited in the article was to open 15 to 20 new stores in 2022 and 20 to 25 new stores in 2023.

8. Starbucks: Kevin Johnson Retires, Howard Schultz Returns

In March 2022, Starbucks announced that president and CEO Kevin Johnson planned to retire after 13 years with the company.

Starbucks' board appointed founder Howard Schultz as interim CEO, effective April 4, 2022. Schultz also rejoined the board.

After returning, Schultz visited Starbucks stores and spoke with store employees. In April 2022, Starbucks announced it would stop repurchasing shares and increase investment in employees and stores.

9. Haidilao: Founder Zhang Yong Steps Down as CEO

On March 1, 2022, Haidilao announced management appointments. Deputy CEO and COO Yang Lijuan was appointed CEO. Founder Zhang Yong, formerly CEO and chair, remained chair of the board and executive director.

Li Yu became COO for mainland China, while Wang Jinping became COO for Hong Kong, Macau, Taiwan, and overseas markets.

Yang Lijuan, 43, was an executive director and had previously served as deputy CEO and COO. From June 1997 to March 2001, she was a manager at Sichuan Haidilao Catering Co., Ltd. From April 2001, she served as a director of Sichuan Haidilao, and in January 2018 she was redesignated as a non-executive director of Sichuan Haidilao.

As one of Haidilao's earliest employees, Yang rose from server to CEO.

As of the announcement, Yang held 179.7 million company shares, including 1.9875 million unvested award shares granted under the company's share award plan. She was entitled to annual director remuneration of RMB 1.5 million, annual CEO compensation of RMB 2.7 million, plus discretionary performance bonuses and other benefits.

Li Yu and Wang Jinping were both born in the 1980s. Li Yu was 36 and joined Haidilao in 2007; Wang Jinping was 38 and joined in 2008.

10. Denny's: CEO to Retire

In April 2022, Denny's disclosed in an 8-K filing that CEO John Miller would retire and that the company was searching for a successor. Miller had become Denny's CEO in 2011.

In 2021, Denny's revenue increased 38% year over year to about $400 million. U.S. same-store sales increased 41.1% year over year.

11. Red Lobster: CEO Resigns Within a Year

In April 2022, Red Lobster CEO Kelli Valade resigned on April 15 after joining the company in August 2021. The company had begun searching for a new CEO.

Note: IPO, valuation, acquisition, shareholding, compensation, and forward-opening figures are historical and reflect the article's April 2022 context.