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June 15, 2009

Industry Headlines

National Restaurant Association announces support for Credit Card Fair Fee Act

The National Restaurant Association today announced support for the bipartisan Credit Card Fair Fee Act of 2009 introduced by Senator Dick Durbin (D-Illinois). The bill would allow restaurants and other businesses to negotiate as a group to set a fair interchange fee with credit card companies and banks. An interchange fee is collectively set by Visa and MasterCard's member banks and is a percentage of each transaction, sometimes accompanied by a flat fee that banks collect from retailers every time a credit or debit card is used to pay for a purchase, adding up to billions of dollars each year.

"We applaud Senator Durbin for taking a stand against the unfair practice of credit card companies and member banks setting an interchange or 'swipe' fee with zero transparency or negotiation with merchants," said Beth Johnson, Executive Vice President of Public Affairs for the National Restaurant Association. "Senator Durbin has been a tireless advocate for interchange fee reform, and we appreciate his commitment to the issue. Restaurateurs want a more fair process when it comes to these excessive transaction fees. The Credit Card Fair Fee Act would allow for a fair process, and cut costs for consumers and retailers."

American consumers pay among the highest swipe fees in the industrialized world. An average of $2 out of every $100 spent using a credit card goes to swipe fees. For many businesses, swipe fees are now their highest non-labor cost, outpacing even health care. Americans are now paying triple the amount in swipe fees they paid in 2001, reaching $48 billion last year alone.

In 2006, the National Restaurant Association joined a number of other trade associations and companies as a named plaintiff in an anti-trust lawsuit against Visa® and MasterCard® and member banks. The plaintiffs state in their complaint that their claims are essentially based on credit card companies and banks setting credit card interchange fees in secret. The fees cannot be negotiated and are not adequately explained or disclosed to merchants or consumers. Currently, the litigation is in the pre-trial discovery stage and will most likely not be resolved for several years, given the lengthy anti-trust litigation process.

The National Restaurant Association is also a member of the Merchants Payments Coalition, a group of retailers, supermarkets, drug stores, convenience stores, fuel stations, on-line merchants and other businesses who are fighting against unfair credit card fees and fighting for a more competitive and transparent card system that works better for consumers and merchants alike. The coalition’s member associations collectively represent about 2.7 million stores with approximately 50 million employees.

Troops in Middle East to Enjoy beer, pizza this Fourth of July

Pizzas 4 Patriots, a non-profit organization, has teamed up with Boston's own UNO to dish out 28,000 deep-dish pizzas to U.S. troops stationed in Iraq and Afghanistan in time for the July 4 Independence Day celebration. Dubbed OPERATION PIZZA SURGE, it will be documented as the World's Largest Pizza Party (Guinness Book of World Records). The second annual event was capped off with the addition of 8,000 cases of beer donated by MillerCoors.

The UNO pizzas, packaged in temperature-controlled containers, was loaded onto a refrigerated truck at UNO's facility in Brockton, Massachussetts, bound for John F. Kennedy (JFK) Airport in New York. From there, the shipment took off directly to the Middle East, with delivery via DHL Worldwide to forward military bases just in time for July 4.Geography enthusiasts take note - Golden, Colorado and Milwaukee, Wisconsin are temporarily being moved to the Middle East. For the second consecutive Fourth of July, Pizzas 4 Patriots, an organization dedicated to providing gifts from home to service men and women overseas, will be delivering pizzas to the troops in the Middle East. This year, however, there will be 8,000 cases of Miller Lite and Coors Light to wash it down, thanks to a donation being made by the brewer.

This spring, MSgt. Mark Evans, USAF, Ret., began reaching out to secure corporate partners to ensure this year's delivery would be the organization's biggest to date. MillerCoors showed an immediate interest in participating.

"We are honored and excited to be a part of this wonderful program and applaud MSgt. Evans for his dedication to our Armed Forces," said Tom Cardella, eastern division president at MillerCoors. "And as a brewer of great beer, we look forward to seeing our brave troops overseas have an opportunity to relax for a few moments and enjoy a couple of cold ones."

On the Fourth of July last year, MSgt. Evans successfully delivered pizzas to troops serving in Iraq. Sparked by the success of that initial effort, he received permission from General David Petraeus, then Commanding General, Multi-National Force - Iraq, to repeat the delivery in February for the NFL championship game. Building on those two events, he is striving to make this Fourth of July party his biggest yet.

"Our goal is to give the troops some time to get their minds off the war, even if just for an hour, and enjoy a good, old fashioned American feast," said MSgt. Mark Evans, founder of Pizzas 4 Patriots. "And this year we are proud to announce that because of the kind contributions of our corporate partners, the vast majority of troops in Iraq will get to enjoy a few slices of pizza and some cold beer this Fourth of July."

Pizzas 4 Patriots is a non-profit organization with the mission of making a positive difference in the lives of our service men and women.

Harry's Bishop's Corner donates to Autism benefit

Harry’s Bishop’s Corner, known for its award-winning Pizza Napoletana, has donated $ 25,000 from proceeds during its Autism Benefit on May 31, 2009. This was its second annual Autism Speaks Benefit.

Proprietor Kevin Plaut said: "the event was a success and met all our expectations and I would like to thank all our customers who attended this benefit.”

Harry’s Bishop Corners’ staff also participated in a walk on Sunday June 7th at Walnut Park in New Britain, Connecticut, in support of Autism Speaks.

Harry Bishop's Corner serves lunch and dinner in West Hartford, Connecticut.

Gino's East serves up new thin crust frozen pizzas in grocery stores

Continuing the company’s success with its legendary frozen Authentic Deep Dish Pizzas, Gino’s East of Chicago has expanded its product line to include frozen Golden Crispy Thin Crust Pizzas. The new 12-inch thin crust pizzas, introduced to grocery store freezer shelves at the beginning of June, are available in four flavors: Cheese; Sausage; Pepperoni; and Sausage & Pepperoni.

“Our new thin crust pizzas feature a super golden crunchy cornmeal crust and contain the identical cheeses and meats used in our super-premium deep dish pizzas,” said Dave Milazzo, president of Nostalgic Food Distributors, Inc. (NFDI), which has licensed the “Gino’s East of Chicago” brand for national distribution.

The Carol Stream, Illinois-based NFDI also recently introduced a new handmade Classic Sausage Patty pizza to its frozen Authentic Deep Dish Pizza line. The new one-of-a-kind variety is topped with a juicy six-ounce solid sausage patty. “It uses the same legendary sausage patty and “secret” golden crust recipes that have made the deep dish pizzas served in Gino’s East of Chicago restaurants famous among generations of Chicagoans and tourists from around the world since it first opened back in 1966,” said Milazzo.

Gino’s East of Chicago makes a total of seven frozen Authentic Deep Dish Pizza varieties: Cheese; Sausage; Pepperoni; Sausage & Pepperoni; Supreme, featuring an abundance of delicious meat toppings; Spinach & Garlic; and the new Classic Sausage Patty, featuring a six-inch solid sausage patty topping. All of the varieties, except the new Classic Sausage Patty, are also available in a single-serve portion weighing 10-11½ ounces.

Russo's New York Coal-Fired Italian Kitchen opens new Texas unit

Owner and first generation Italian-American Anthony Russo fans the flames of his successful coal-fired concept. Known for his New York style pizza and fine Italian cuisine, Russo is proud to announce the opening of the first RUSSO’S NEW YORK Coal-Fired Italian Kitchen in the Dallas area. And his grandparents would be proud.

Russo first introduced Houston to his coal-fired pizzeria in Spring 2008 and the accolades continue to spread like wildfire. He believes strongly in going back to the original methods of making pizza. “I have fond childhood memories of enjoying a slice of coal-fired pizza and a Coke,” says Russo.

Pizza lovers appreciate the enhanced flavor that only comes from baking with coal – and it shows. Recently named the best pizza in Houston by Houston Press, the pizza at RUSSO’S NEW YORK Coal-Fired Italian Kitchen offers a crisper, slightly charred crust that truly embraces the authenticity of New York style pizza. And the fresh toppings cook instantly in the heat.

“What distinguishes a coal-fired oven from a wood-burning or a gas-fire oven is the coal oven’s intense heat,” says Russo. “Coal just takes the flavor up a notch and truly separates us from the competition. When paired with the freshest ingredients and our homemade dough and sauce, it’s absolutely delicious.”

The new location is located at 700 E. Campbell Road. The restaurant will serve lunch and dinner during standard restaurant hours. It will also offer delivery and home-catering services.

Russo’s New York has over twenty locations in the greater Houston area.

Franchise Consulting LLC inks deal to franchise Fairfax-based Paisano's

Franchise Consulting, LLC (FC) has announced the addition of Fairfax-based restaurant chain, Paisano’s, to its client roster. Founded in 2006, Franchise Consulting is a Fairfax, VA-based franchise development company that has marketed and sold hundreds of franchises since its inception for clients such as Camille’s Sidewalk Café, Coney Beach and FreshBerry Frozen Yogurt Café.

“Paisano’s is an innovative delivery concept that serves amazing Italian food in addition to its flagship New York style gourmet pizza,” said Mike Halpern, FC’s founder and CEO. “Paisano’s has proven its solid business model for over a decade. Its franchising potential makes Paisano’s the perfect addition to our portfolio of brands to market in D.C., Maryland, Virginia and beyond. To begin with, we plan and hope to sign ten deals to open locations in the area by the end of 2010.”

The agreement between Paisano’s president and CEO Fouad Qreitem and FC will utilize FC’s organizational and support system to franchise the brand. FC’s services will include marketing, real estate, franchise sales, and other aspects of franchise development. Paisano’s will be positioned as an Italian delivery concept with an average ticket of $19.

Founded in the Fair Lakes area of Fairfax County by Qreitem, Paisano’s has grown to a five-unit chain since first opening in 1997. After refining their systems over the past 12 years and operating the company-owned locations, Paisano’s is a seasoned and proven restaurant concept that is poised to flourish as a franchisor. The menu includes gourmet pizza, pasta, subs, stromboli, wings, salads and more. Qreitem also founded Bella Pizza, which is located in Centreville, VA.

“When I founded Paisano’s it was our goal to transform the way people think about pizza delivery,” Qreitem said. “And now with the help of Franchise Consulting we will be able to do that in the D.C. Metro area, across the nation and ultimately around the world.”