Industry's ex-presidents find life lacking at bottom of mgmt. pool

Joseph A. Conti is a Tucson, Ariz.-based restaurant operator with 30 years of experience.

Have you ever wondered what happened to the people you once read about here in NRN? Where are they today? What are they doing? Many of them are victims of restructuring, downsizing and mergers all sacrificed on the altar of short-term cost cutting and efficiency.

I personally know of five past presidents or executive vice presidents who encountered the same fate. And I can attest that they had a positive impact on the companies they led. In most cases they are victims of their own success. The company has benefited from their management, but they are caught in the restructuring frenzy. They ought to have opportunities elsewhere within the industry to draw upon their experiences to enhance and improve the operation of lagged performers and also companies dedicated to aggressive expansion.

It seems, however, that most are relegated to a "black hole." They are in most cases driven by their own success out of the top management position in the industry and forced to open their own restaurants enter a new industry or go into premature retirement. "Why don't they try to get an interview for a position other than the president?" you may ask. High-level positions are few. Furthermore, If you get an interview for a lesser position. the typical reactions are likely to be as follows:

* you are overqualified

* you won't be happy long-term with a lower position

* you always will be looking for another job

* you don't know the concept

The foodservice industry has the same principles whether the restaurant is a fast-food or a theme concept: Take care of the customers and take care of the people upon whom your success depends. Serve quality food in a clean and friendly environment.

So much for the "concept." Beyond that, it is the experience of managers who actually have been out there that comes into play Those who have managed a concept successfully bring a lot to the table.

Some might claim that this is a generic problem common to all industries. Not enough room is at the top, especially during periods of restructuring, and top people can't adjust well to no longer being at the top. That is not so. Consider pro football and the experiences in the NFL. Assistant coaches move to head coach positions and then often back again to assistant coaches. Consider the experience of Joe Bugel. He was offensive line coach for the Washington Redskins, moved to the head coach position for the Phoenix Cardinals, and now is a defensive coach for another team. It is recognized in the NFL that although head coaches often seem to bear the full responsibility for winning, in fact, they are limited by the owners' willingness to pay top salaries and the general managers' ability to identify and sign top talent. Thus, it is recognized that coaching talent can be redirected both upward and downward. Life for coaches on pro sports does go on. Not so, however, in the restaurant industry.

One of those who achieved success but is now victim of restructuring is yours truly, Joseph A. Conti. With excellent credentials and experience, I was former president and chief operating officer of a top 100 restaurant, Old Country Buffet. The company grew from 60 restaurants to more than 200 restaurants within a five-v ear period, while also having the most profitable years in the chain's history, above 10-percent pre-tax profits, simultaneously reducing both insurance costs and management turnover. Also, during this period of aggressive growth the chain was selected No. 1 chain in the Buffet/Cafeteria segment in a People's Choice Survey for two years in a row.

However, thanks to a restructuring or whatever. I am now on the job market. The majority of presidents and vice presidents who grew up in the restaurant industry want to stay in the business. Speaking for myself. I've always tried to hire people who would contribute to the success of the company no matter what position they held previously. The challenge and opportunity is what matters. Job titles are great, but you can't get a loan on a job title.

COPYRIGHT 1999 Lebhar-Friedman, Inc.
COPYRIGHT 2000 Gale Group