Peterson: giving something back

Nation's Restaurant News, May 23, 1988 by Karen Bruno

PETERSON: GIVING SOMETHING BACK By Karen Bruno

CORPUS CHRISTI, Texas -- Jim L. Perterson, who has cultivated a high profile as president of Whataburger, the privately held regional burger chain based here, is stepping into the spotlight as 1988-89 president of the National Restaurant Association.

He succeeds Michael J. Grisanti at the National Restaurant Association's annual show here. "I want to give something back to an industry I love," Perterson declares.

Indeed, he is known throuthout food service as a fierce competitor, both personally and in business, a strong individualist, and sometimes a maverick.

The 52-year-old chief executive often rises at dawn to run miles, competes in marathons, and is an avid tennis competitor.

In an industry dominated by chain giants, Perterson is considered to be on the side of "the little guy"

One insider notes that Peterson has rejected offers to acquire larger chains or to become president of a national chain, preferring instead to build Whataburger into a leading regional food-service chain that dominates its home market.

During his 15 years as president, Whataburger has expanded to more than 400 units throughout the Southwest.

Despite individualistic stances, Perterson is hardly an industry outsider. In addition of his involvement with the NRA, of which he has been a board member since 1981, he has won numerous industry honors, including Nation's Restaurant New's Multi-Unit Food-Service Operator of the Year in 1980.

In 1983 the International Foodservice Manufacturers Association awarded him the Silver Plate for best quick-service executive.

Peterson has effected numerous innovations at Whataburger, including back-to-the-house storage, energy conservation, and its unique cattle-feeding program. An industry source says that two years ago Peterson was so involved in negotiations on cattle contracts that he barely arrived in time to deliver the keynote address at an industry conference, an incident that also bears testimony to his intensity.

Whataburger raises its own herds of cattle on seven ranches and arranges for ranchers to raise the product. Then the fast feeder deeds them according to specifications resulting in lean beef. As a result, the chain is considered to have high-quality food in a segment that has been bebunked for selling junk food.

Another Perterson innovation is the Whataburger Information Network. It consists of prominently displayed computers in three test units. Customers can request nutritional information on menu items while getting information about Whataburger service and products.

"The response rate has been excellent, much stronger than with printed cards," Peterson says. "We expect to expand WIN to all 400 units."

Peterson is also one of the industry's most vocal advocates of training and motivational programs. He says that as president of the NRA he will seek to "establish a training wage of from 80 percent to 85 percent of the minimum for a period of 90 to 120 days."

Peterson would like to hold the minimum wage to its current level and increase he tip credit from 40 percent to 50 percent. To accomplish that, he says he would "take a good strong look at alternative strategies."

With predecessor Grisanti having laid the groundwork, Peterson expects to continue building grassroots support in the industry.

"We've been undergoing great challenges in our industry in the past 10 years. The positive side of these challenges is that they stimulated awareness on the part of operators," Peterson says.

He says he would enlist the support of the industry's suppliers. "They have supported us financially, but we want them to work in tandem with us on many congressional issues."

Perterson has other battles to fight. "I want to project the restaurant industry as the country's service leader," Peterson declares. "We serve more customers in a given day than any other industry. And right now we have a better-quality employee than we've ever had," he says.

Peterson says he would draw upon the expertise of government afffairs executives, state executives, and the associations to help accomplish his objectives.

In the 1950s he worked as a carhop, waiter, and chef. Although a career as a major-league ballplayer has within reach, Peterson decided to enter the service sector. His first job was at Montgomery Ward & Co., where he rose to operations manager.

After a short stint with Sinclair Oil Co., Peterson joined the Lincoln, Neb.-based Food Host USA, of which he ultimately became president.

In 1974 he was hired by the widow of th fledgling Whataburger's founder, Harmon Dobson as president. Grace Dobson remains chairman and principal owner today.

Photo: 'I want to project the restaurant industry as the country's service leader. We serve more customers in a given day than any other industry. Right, now, we have a better quality employee than we've ever had.'