Prudential-Bache poll ranks Brinker top executive; McDonald's voted most widely respected chain

Nation's Restaurant News, May 19, 1986

Prudential-Bache poll ranks Brinker top executive

NEW YORK--Chili's chief executive Norman Brinker edged out McDonald's chief executive Fred Turner as the food-service industry's most highly regarded manager, but McDonald's remained far and away the most widely respected restaurant chain, according to Prudential-Bache's "second Annual Quality of Management Survey."

Chili's, Shoney's, Collins Foods, Dominos Pizza and Luby's Cafeterias also registered extremely favorable responses in the survey, which polled investment professionals and restaurant chain executives from across the United States.

At issue in the survey was the perceived link between strength of management and success in the food-service marketplace. But Prudential-Bache, which initiated the survey in 1985, provided no clear-cut definition for the term "quality of management."

Instead, respondents were given a list that included the names of top executives of about 75 public and privately held restaurant chains. They were then asked to circle the names of up to 10 individuals believed to possess superior management skills. The list was alphabetical with additional space provided for write-in votes.

With ballots distributed to some 2,000 investment professionals and chain executives, Prudential-Bache received a total of 176 responses--as compared with 221 last year--or about a 9% return. A breakdown shows that 121 respondents identified themselves as restaurant industry participants, 28 as investment professionals, while 27 responses were anonymous.

For purposes of quantifying the final data, responses were divided into four categories including total votes cast, investment professionals' votes cast, restaurateurs' votes cast and anonymous votes cast. The top 20 chain executives and the top 20 food-service chains were then determined from each category.

In terms of total votes cast--perhaps the most significant category--Brinker's name appeared on 47.7% of all ballots while Turner's name appeared on 47.2%. But McDonald's, which was voted first in last year's survey, outscored Chili's (and all other chains) on the strength of votes cast for its president and chief operating officer Mike Quinlan. His name appeared on 13.6% of the ballots.

Making the survey's top 20 for the first time were Art Gunther of Pizza Hut, who finished eighth; Tom Gregory of Sizzler, 10th; George Wenglein of Luby's, 11th; Alvin McCall of Ryan's Family Steak Houses, 16th; Dick Bermingham of Collins Foods, tied for 18th; and, tied for 20th, former Chili's president Hal Smith, who was recently named chairman and chief executive of Chi-Chi's.

Meanwhile, former Chi-Chi's chief executive Shelly Frank and Shoney's president Gary Spoleta--tied for 13th in last year's survey--failed to make the top 20, as did Ron Fay of Wendy's (16th last year), Frank Carney of Flakey Jake's (18th last year) and Ed Rensi (19th) and the retired Edward Schmidt (20th) of McDonald's.

Domino's Tom Monaghan, chosen as the 13th most highly regarded manager in 1985, placed fourth in this year's survey. But Wendy's Bob Barney slipped from third to seventh, Saga's Charlie Lynch fell from fifth to 14th, Denny's Vern Curtis went from eighth to 15th and TGI Friday's president Dan Scoggin plunged from 10th to 18th.

Among restaurant chains cited in last year's top 20, Chi-Chi's (12th), KFC (16th), Carl Karcher (17th), Rax (18th), Grandy's (19th) and Flakey Jake's and VICORP (tied for 20th) failed to place in the most recent survey.

But Pizza Hut (10th), Sizzler (12th), Jerrico (13th), Ryan's (14th), Dunkin' Donuts (tied for 16th), Church's and Morrison (tied for 18th) and W.R. Grace (tied for 20th) made the list of best-managed chains for the first time.

On a segment-by-segment basis McDonald's was voted the best-managed hamburger chain, Shoney's led in the diversified sector, Domino's in Pizza, Chili's in casual dining, Luby's in cafeterias, Bob Evans Farms in family restaurants, Jerrico in fast seafood, Church's in chicken, Rusty Pelicon in upscale seafood, Taco Bell in fast-food Mexican, Flakey Jake's in gourmet burgers and El Chico in Mexican dinnerhouses.