Canteen retains Harvey for new Southeast push

Nation's Restaurant News, Jan 12, 1987 by Rick Van Warner

Canteen retains Harvey for new Southeast push

CHICAGO -- Canteen Corp.'s recent acquisition of Charlotte, N.C.-based Consolidated Coin Caterers Corp. (4C) for an undisclosed amount further bolstered Canteen's position as the nation's third-largest contract feeder.

J. Shields Harvey, president and chief executive of 900-unit 4C, has agreed to head the operations of both that corporation and Canteen in 4C's trading area of North Carolina, South Carolina and Virginia. Canteen currently has branch offices in Charlotte, Greensboro and Raleigh, N.C.; Spartanburg and Greenville, S.C.; and Richmond, Va.

Meanwhile, Canteen executive vice president James A. Rost, who was president and chief executive of Interstate United until its acquisition by Canteen's parent, Transworld Corp., 14 months ago, has resigned.

4C, which projected 1986 revenues in excess of $45 million, is the latest in a string of food-service concerns that Canteen has absorbed into its 2,000-plus-unit system.

It acquired American Medical Services, a nursing-home operator, in late November of 1986.

Canteen's recent buy comes on the heels of Transworld's disclosure that it will sell its 90-unit Hilton International hotel group and reorganize its two remaining properties into a new company, but the moves seem unrelated.

"It [Canteen] makes several acquisitions during the course of a year," said Anton Brenner, an analyst with C.J. Lawrence of New York. "Transworld is continually expanding both Canteen and its restaurant division [Spartan Food Systems]; the sale of Hilton won't change that, at least in the foreseeable future."

Canteen president and chief executive Robert Kozlowski noted that the 4C deal was consummated before the Hilton transaction.

"It [4C] is an extremely healthy company with a marvelous growth rate," Kozlowski said. "It gives us expansion potential and allows us to better serve our customer base. It should make a major contribution to our Southern operations."

BOTH 4C and Canteen locations in the Carolinas and Virginia will operate independently under their current names, and no major changes are planned, Kozlowski added.

Harvey, who in essence will become Canteen's regional vice president for the area, declined to comment on the buyout.

Established as a food and vending subsidiary of Coca-Cola Bottling Co. Consolidated, 4C has been independently owned since August 1985. It also provides food-service, catering and office refreshment operations through eight branches with more than 750 employees.

Kozlowski described Rost's departure as "very amicable."

Rost, whose resignation became effective Jan. 1, served as president and chief executive of Interstate from 1979 until its acquisition and merger with Canteen Corp. in late 1985.

He then accepted an offer to stay on as executive vice president.

"It was not a very satisfying situation for me personally," Rost said. "I wanted to help put the merger together successfully, so I chose to stay. "But after being ceo for seven years, it was a whole different situation to be executive vice president. I don't choose to be the No. 2 man anymore."

ROST ALSO indicated he was negotiating with some companies but wouldn't disclose where his next position would be.

"I've never taken a long vacation, so for now I'm just looking forward to traveling and having some fun."