News Briefs

PM Hotel Group, a leading hospitality management company, and Sightline Hospitality, renowned for its experiential travel and innovative property management, are pleased to announce a strategic merger. This partnership marks a significant development in PM Hotel Group’s growth trajectory, specifically within PM Hotel Group’s lifestyle hotel division Modus by PM Hotel Group, complementing and deepening the organization’s distinct verticals of lifestyle, unconventional hospitality and experiential travel. The merger expands PM Hotel Group’s footprint across the United States, positioning the newly combined entity to deliver unparalleled management excellence and redefine luxury and lifestyle, driving enhanced value for property owners while offering guests a diverse range of premium accommodations and immersive experiences.

“Joining forces with Sightline Hospitality represents a significant milestone in PM Hotel Group's ongoing mission to elevate hospitality management standards,” said Joseph Bojanowski, President, PM Hotel Group. “Our companies share a vision for redefining guest experiences and a dedication to operational excellence. This partnership allows us to leverage our combined expertise, expanding our footprint from coast to coast with a diverse portfolio of distinctive properties. By uniting our people and strengths, we are well positioned to meet the evolving demands of today's discerning travelers, while setting new benchmarks for innovation in our industry.”

The merger with Sightline Hospitality significantly expands PM Hotel Group's portfolio, adding 22 properties that are either open or set to open within the coming months, largely as part of the organization’s lifestyle and unconventional hospitality division Modus by PM Hotel Group. This expansion includes a strong presence in the mountain regions, along the West Coast, and marks PM Hotel Group's debut in the Hawaiian Islands. The new properties not only align with PM Hotel Group’s ambitious growth strategy but also diversify its geographical reach into highly sought-after markets where travelers increasingly seek alternatives to traditional big box hotels. The merger strengthens the organization’s position in delivering unique, experience-focused hospitality, while simultaneously growing its presence in markets where proximity to nature and outdoor adventure is viewed as the new luxury.

In response to evolving consumer preferences, PM Hotel Group is now better equipped to cater to travelers who prioritize meaningful experiences over conventional luxuries. This strategic expansion introduces distinctive brands like RESET and evo Hotels to PM Hotel Group's diverse portfolio, deepening and strengthening their distinct verticals of lifestyle and experiential travel. These unique destinations cater to the growing demand for outdoor adventure, aligning perfectly with the increasing popularity of the national park system. The RESET properties offer immersive, nature-centric experiences, while evo Hotels combine urban comfort with easy access to outdoor activities, catering to a growing segment of travelers who view proximity to outdoor adventure as a premium offering in itself.

"At Sightline Hospitality, the core mission has always been to craft exceptional and immersive experiences for our guests. This merger with PM Hotel Group represents a strategic opportunity to combine our strengths and redefine the boundaries of hospitality excellence,” said Kirk Pederson, President, Sightline Hospitality. “We are excited to integrate our unique culture, our people and expertise with PM Hotel Group's established record of industry leadership. Together, we are poised to set new standards in guest satisfaction and property management."

Underscoring the significant cultural alignment between the two organizations, both PM Hotel Group and Sightline Hospitality share a commitment to innovation, efficiency, sustainability, and creating meaningful experiences for guests. The newly merged entity will continue to operate under the PM Hotel Group name, with plans to integrate Sightline Hospitality's innovative approaches and unique properties seamlessly into its operations. This strategic move is set to grow PM Hotel Group’s footprint within lifestyle and unconventional hospitality, with both organizations bringing their best practices and core values to the table. The new shared vision will drive a strategic approach to property management, guest services, and community engagement to maximize value for guests and owners alike.

Encore, a global event technology and production services provider, confirmed today the launch of its pioneering ‘Overtime Savings Program’ in the United States, along with additional people-first programs to further support its ongoing workforce in a seasonal industry.

Powered by UKG’s payroll technology, this first-of-its-kind program aims to enhance financial wellness and stability for Encore’s frontline employees, many of whom work in markets that experience seasonal ebb and flow of business volumes.

With 12,000 team members providing event technology and production services at 2,200 hotels and conference venues in 20 countries, Encore faces the same challenges common in the hospitality industry. Seasonal fluctuations often result in workers’ hours varying from ample overtime during peak times to reduced schedules in off-season periods. This seasonality makes it difficult for workers to maintain consistent earnings and creates challenges for companies to retain talent in the off season.

“Encore has always believed its team members are the heart of our story. This people-first mindset motivates us to constantly evolve our team member experience and innovate around challenges, like the impact of seasonality, that the industry previously viewed as immutable,” said Ben Erwin, president and CEO of Encore.

In addition to the Overtime Savings Program, the company launched a Seasonal Leave of Absence Program, which offers team members the flexibility to take time off during slower seasons while retaining full benefits, accruing paid time off, and maintaining their tenure. This unique program enables employees to explore other work opportunities, pursue education, or focus on personal goals without sacrificing benefits or career progression. Both the Overtime Savings and Seasonal Leave of Absence Programs are active nationwide, with plans for global expansion.

“We established the program as another way to support our team members so that they can be at their best in delivering for our customers,” Erwin added. “With this innovation, they can better plan and save their premium overtime pay for periods of the year when they might not work as many hours. Providing this capability and funding a company-paid match for a portion of the savings should motivate financial wellness and enable them to continue to build their career with Encore. Team member reactions tell us we are onto something,” he said.

With a launch just after Labor Day, usage of the UKG Wallet™ increased tenfold compared to the prior year’s period. he company offered an initial savings match, similar to a 401k program incentive match, to reward healthy financial behavior.

“Financial stress is not a problem isolated to our industry, it’s a stressor for nearly everyone,” said Charlie Young, chief human resources officer at Encore. “Nearly 70% of Americans are living paycheck to paycheck¹ and Americans spent $9B in bank overdraft fees in 2023. The more we can do to reduce stress for our team members, the more focused they can be on our customers. We are successful in the event production business because of the unique combination of our technical expertise, hospitality mindset and ability to work under pressure and through challenges. Seasonal fluctuations are part of our business, but with a partner like UKG that understands every industry has unique challenges, we were able to innovate to support those unique needs to make our team members’ lives better.”

Cody Browne, a technical lead with five years of service for Encore in Las Vegas, said he will try the Overtime Savings program, in addition to accruing and saving his Paid Time Off, for the slow season in December in Las Vegas. He hopes the vacation time, in addition to the saved overtime funds, will afford him an out-of-state vacation to visit family. “I love that Encore is creating new opportunities, that’s one of the reasons I am interested in growing my career here,” he said.

Mark Shambura has joined Panera Bread as Chief Marketing Officer. Shambura will lead all aspects of marketing at Panera, including Brand Building, Digital & Loyalty, Product Strategy & Consumer Insights. An accomplished marketing leader with broad expertise in the restaurant industry, Mr. Shambura has previously held marketing leadership roles during pivotal growth periods for top brands including Chipotle, MOD Pizza, and most recently Papa Johns.

"Mark brings an impressive background building brands and leading marketing teams for fast-casual restaurants, and we’re thrilled to welcome him to Panera Bread,” said José Alberto Dueñas, Chief Executive Officer. “As Panera continues to evolve our brand, guided by listening to our guests, Mark’s depth of experience and ability will help drive our growth as a brand that serves great food you feel good about eating.”

Shambura previously served as CMO at Papa Johns, where he led a revitalization of the brand by enhancing its iconic “Better Ingredients, Better Pizza” platform, and developing a more modern, innovative omnichannel approach to transform how Papa Johns appealed to both new and loyal consumers. As Executive Director at Chipotle, Mr. Shambura guided the marketing function through periods of both sustained growth and transition, providing leadership over brand strategy, advertising, digital, social, events/sponsorships, promotions, and field marketing, including playing a key role in spearheading its “Real Ingredients” brand strategy.

“I’m proud to join the Panera Bread team and excited to build on the momentum of the brand's transformation as it continues to evolve in service of our guests,” Mr. Shambura said. “Panera propelled and cemented its position at the top of the fast casual restaurant segment through its promise of high-quality ingredients and freshly prepared food, and I’m thrilled to join a highly talented team to help shape its next chapter.”

Prior to his tenure in the restaurant industry, Mr. Shambura gained extensive marketing agency experience, working with a broad array of top global consumer brands for over a decade. Shambura will report directly to José Alberto Dueñas, Chief Executive Officer, and officially assumed the role of Chief Marketing Officer on July 29, 2024.

Tropical Smoothie Cafe announced that Max Wetzel, a restaurant industry leader with a proven track record driving growth and innovation at some of the most iconic quick service restaurant brands, has been appointed Chief Executive Officer. Wetzel succeeds Charles Watson, who is stepping down after more than 16 years with Tropical Smoothie Cafe, including the past six years as CEO. 

Wetzel brings decades of experience successfully growing global brands and highly franchised restaurant businesses. Most recently, Wetzel served as CEO of CKE Restaurants Holdings Inc., parent company of Carl's Jr.  and Hardee's, overseeing more than 3,700 restaurants across 40 countries and territories. Prior to CKE Restaurants, Mr. Wetzel served as Chief Operating Officer of Papa John's International, Inc., one of the largest franchisors of restaurants in the world. Throughout his career, his leadership has centered around creative initiatives, collaborative culture, and improved customer experience.

"I am honored to have the opportunity to join Tropical Smoothie Cafe at this exciting stage of our growth journey," said  Wetzel. "Tropical Smoothie Cafe's uniquely fun, tropical atmosphere, innovative, better-for-you menu and dedication to guests have solidified the Company as a nationally recognized leader in the fast casual industry. I am excited to join an organization with such a strong culture and commitment to 'Inspiring Better' in everything that we do. I look forward to working with our talented team to further support our franchisee community to showcase the Tropical Smoothie Cafe story and offer incredible experiences to more communities and guests every day."

Additionally, Tropical Smoothie Cafe announced that Roland C. Smith, a seasoned restaurant executive with more than 25 years of leadership experience, has joined its board of directors. Smith is an experienced senior executive with a consistent track record of growing leading restaurant, retail and consumer brands. He has served as Chief Executive Officer of both public and private companies, including Delhaize America, LLC, Wendy's/Arby's Group, Inc., Wendy's International, Inc., Triarc Companies, Inc., and Office Depot, Inc. He has also served as Chairman of numerous boards, including 24 Hour Fitness USA, Inc. and Carmike Cinemas, Inc., and additionally has served as a Director of Caliber, Inc. and Dunkin' Brands, Inc. Currently, Mr. Smith is Chairman of Jack's Family Restaurants and a Director of The Station Foundation.

Earlier this year, funds managed by Blackstone acquired Tropical Smoothie Cafe. This investment from Blackstone is intended to help accelerate Tropical Smoothie Cafe's already-rapid expansion through continued investments in menu innovation, operating excellence and best-in-class marketing.

Tropical Smoothie Cafe began operating as a single location on a beach in Destin, Florida, in 1997 and has grown into a nationally recognized brand with nearly 1,500 locations across 44 states. Since 2023 , Tropical Smoothie Cafe has opened more than 300 new locations, over 70 percent of which were opened by existing franchisees. 

TGI Fridays Inc. the owner and operator of 39 domestic restaurants in the  TGI Friday’s casual dining chain,  filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas. The Company expects to use the time and legal protections made available through the Chapter 11 restructuring process to allow the Company to explore strategic alternatives in order to ensure the long-term viability of the brand.

The TGI Fridays brand and related intellectual property are owned by TGI Fridays Franchisor, LLC as a result of a securitization agreement with a separate investor group. These entities are not included in the Chapter 11 process.

TGI Fridays Franchisor, LLC has franchised the brand to 56 franchisees in 41 countries. All of these franchise locations, both domestic and international, are independently owned and therefore not included in TGI Fridays Inc.’s Chapter 11 process. They are open and serving customers as usual.

To ensure continuity of service to franchisees, TGI Fridays Franchisor, LLC has negotiated a Transition Services Agreement (“TSA”) with – and provided interim funding to – TGI Fridays Inc. to maintain support services for franchisees while TGI Fridays Franchisor, LLC works to implement a new long-term support structure.

In addition to supporting franchise restaurants, TGI Fridays Inc. maintains operations across its corporate- owned restaurants in the U.S. The Company has secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process. It also filed motions with the Bankruptcy Court that, when approved, will allow the Company to, among other things, continue its customer programs in the normal course. These motions are typical of the Chapter 11 process and are expected to be heard and approved in the first days of the case.

"The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world," said Rohit Manocha, Executive Chairman of TGI Fridays Inc. "The primary driver of our financial challenges resulted from COVID-19 and our capital structure. This restructuring will allow our go- forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."
 

A Look Back

TGI Fridays Inc.  is the latest brand to file voluntary Chapter 11 in 2024, including  Roti, Buca di Beppo, World of Beer, Melted Bar & Grill, Kuma's Corner and Tijuana Flats, to name a few. RL Investor Holdings LLC acquired the bankrupt Red Lobster restaurant chain in September.   

BurgerFi International, Inc., owner of the casual dining chain Anthony's Coal Fired Pizza & Wings and BurgerFi,  filed voluntary petitions for reorganization. On Oct. 31,  BurgerFi was sold out of bankruptcy to lender TREW Capital Management in a credit bid of $44 million.  TREW also purchased bankrupt Rubio's in August for $40 million.