Putting a Stake Down

N.C.’s toP 100 golf Courses driViNg duCK HeAd’s ProsPeCts • tolls AHeAd • loVe At first Bite NORTH CAROLINA All you can seat: Putting Ceo lance trenary takes a fresh look a stake at golden Corral. down April 2015 Price: $3.95 businessnc.com COVER STORY Palate loader New CEO Lance Trenary wants to pack the nation’s dominant buffet chain with diners seeking more than a hunk of beef. BY MATTHEW BURNS e feed middle America,” rivals and attract more than 3 million cus- Lance Trenary says mat- tomers each week. With $50,000 raised from ter-of-factly as the crowd investors, James Maynard and a partner grows at a super-sized opened the first Golden Corral in Fayetteville W Golden Corral restaurant in 1973, mimicking the affordable steak din- in Raleigh. It’s only 3 p.m. on a Monday, but ners offered by rivals such as Western Sizzlin’ already dozens of men preparing for a long and Ponderosa. Buffets were added in 1988, Golden night on the job, retirees grabbing an early- modeled after Greer, S.C.-based Ryan’s Fam- bird dinner special and a few families with ily Steak Houses Inc., which had started the Corral’s restless young children are weaving their concept a couple of years earlier as diners evolution way through Lighthouse Bay, The Piazza and demanded more choices and more salad other sections of a 30-yard-long buffet, load- offerings. In 1999, three of the nation’s 50 big- 1970s ing brightly colored plates with everything gest restaurant chains were buffets: Golden from shrimp to burritos to brownies. Corral (32nd), Ponderosa/Bonanza (41st) 1971 This isn’t your grandfather’s steakhouse, and Ryan’s (44th), while Western Sizzlin’ James Maynard and William Nation’s Restaurant F. Carl conceive idea for where a medium-rare ribeye, a baked potato and Quincy’s trailed. In Golden Corral after unsuc- topped with butter and sour cream, a salad News’ latest rankings of the largest U.S.-based cessful attempts to buy a and some peach cobbler were standard fare. restaurant chains in 2014, Golden Corral still franchise from other com- Golden Corral is an all-you-can-eat bonanza, panies. It was incorporated ranked 32nd. No other buffet restaurant is a year later. offering more than 200 items on its self-de- in the top 50, and Golden Corral’s sales are scribed “endless buffet.” The current version almost six times greater than the next larg- 1973 is aimed to give diners anything and every- First Golden Corral restau- est buffet chain, HomeTown Buffet, which is rant opens in Fayetteville. thing they want, says Trenary, president and owned by Ovation Brands Inc. Ovation, now CEO of the Raleigh-based chain since Janu- based in Greer, bought Ryan’s in 2006 and 1980s ary. “We want to excite people about what operates 328 restaurants under six names. a buffet can offer. It’s not just a heavy meal. Sewell says Golden Corral’s success 1985 The experience can be high-quality food and stems from its variety of fresh foods, efforts Ted Fowler is named a variety of products.” to change the ambience of restaurants and president. He was pro- As Golden Corral’s first new CEO in 26 decisions to oust ineffective franchisees. moted to CEO in 1989. years, Trenary is poised to speed growth at Rivals didn’t keep up because they served 1987 a company that dominates its slice of the too much frozen food, turning off custom- The company begins restaurant-industry pie. During former CEO ers, he says. Much of Golden Corral’s food franchising by licens- Ted Fowler’s tenure, Golden Corral flipped preparation is now visible, so customers see ing restaurants to their from owning more than 90% of its restaurants cooks slicing and dicing. The dinner-theater most successful general managers. to the current makeup in which 75% of its choreography of moving ingredients to 498 restaurants are franchised. But today’s different stations and then cutting, mixing, versions are much bigger and busier as the baking and frying while customers serve 1990s company has pushed into more populated themselves is a key element of Golden Cor- metro areas and attracted more breakfast ral’s brand, Trenary says. “We want people to 1991 business. Sales have increased by 90% to know that they’re not eating dishes that have The ﬁrst “metro market” concept restaurants open, $1.8 billion since 2000, with the chain’s been processed or been frozen and reheated, more than doubling the units serving an average of 6,500 to 7,000 and we think customers appreciate being capacity of older ones. diners per week. Its buffets average more able to see that — and taste it.” Making ef- 1992 than $3.5 million a year, more than all but a fective changes is critical for every restaurant Fowler predicts Golden Cor- handful of the largest U.S. restaurant chains, company, says Harry Balzer, a food-industry ral will reach $1.7 billion while the average $10 per visit paid by diners analyst at NPD Group, a Port Washington, in sales by 1997. It reaches brings in several dollars more than many that level in 2013. N.Y.-based market-research firm. “If you’re fast-food rivals, says Billy Sewell, CEO of still around, you’re not doing the things you 2000s Jacksonville-based Platinum Corral, the did 20 years ago,” he says, particularly with chain’s second-largest franchisee with 26 menus. “We’re looking for new versions of 2001 restaurants in six states. things we know, not something we’ve never Annual sales exceed The company has repeatedly remade heard of before. So you have to find ways to $1 billion for the ﬁrst time. itself during its 42-year history to outpace do familiar in a new way.” 44 Business north Carolina Across the fruited plain Washington Golden Corral restaurant 2 locations as of March 2015 Montana 2 North Dakota 2 Idaho Wisconsin South Dakota New York 5 1 6 4 Wyoming Michigan 1 6 Iowa Pennsylvania Massachusetts Nevada Nebraska 3 9 1 3 Ohio 1 Illinois 26 Utah 15 Indiana New Jersey 9 Colorado 18 West Virginia 4 California 10 Kansas Missouri 5 Virginia 9 6 17 Kentucky 22 Maryland 15 12 North Carolina Tennessee 48 Arizona Oklahoma Arkansas 11 15 New Mexico 13 5 7 South Carolina 14 Mississippi Georgia 4 Alabama 28 10 Texas Louisiana 66 6 Alaska 1 Florida 56 Source: Golden Corral Golden Corral’s buffet includes tradi- meal. “People want more control over what 2000s tional comfort foods such as meatloaf, mac they eat, and offering customized meals puts ‘n’ cheese, fried chicken and, at many loca- the guest in control,” he says. Mid-2000s tions, a cascading fountain of chocolate to Millions of people in the U.S., however, The company’s “Strata” coat marshmallows and other desserts. But exhibit little control when it comes to food. concept expands nationally, bringing more food prepara- the company has kept up with more adven- According to the federal Centers for Disease tion into the view of diners. turesome palates by frequently adding and Control and Prevention, 69% of American changing buffet selections. In a kitchen at adults were overweight in 2012, including 2004 its headquarters, 10 chefs are testing about 35% who were obese — more than double Golden Corral sponsored the NASCAR Sprint Cup at 30 concepts at any time. “We follow flavor the rate in 1980. Obesity rates are even higher Atlanta Motor Speedway trends — what’s new, what’s bold — and among blacks (48%) and Latinos (43%), demo- from 2004 to 2006. watch what’s popular among ethnic dishes. graphic groups that Trenary says visit Golden 2008 We also look at what other restaurants are do- Corral in disproportionately high numbers. There were 485 restaurants ing to see if there’s something we should try,” “The responsibility for health ultimately falls in 41 states. Trenary says. At a few restaurants, Golden on the individual,” says registered dietitian Corral is trying wood smokers to give a dif- Joanne Gardner, a nutritionist at Duke Uni- 2010s ferent flavor to its grilled sirloins. Other dish- versity Health System’s integrative-medicine es are offered only in certain regions, such as unit in Durham. “You can’t blame a restau- 2013 green chili in the Southwest. “There’s lots of rant for obesity.” Still, an “endless buffet” Golden Corral spends $35 room to experiment with the space we have million on national TV ads, can be a difficult temptation for people trying ranking 26th among adver- on the buffet,” Trenary says. A stir-fry area to eat a healthy meal, or at least avoid glut- tisers, according to Nielsen called Mongolian Grill opened in a handful tony. “Choice is wonderful, but when you’re Ad Views. of restaurants last fall, allowing customers to faced with a lot of choices, the tendency is 2015 choose from various meats, seafood, vegeta- to choose a lot of different foods,” she says. Lance Trenary succeeds Ted bles, sauces and spices for a cooked-to-order “Golden Corral represents an abundant food Fowler as CEO. APRIL 2015 45 Triangle titan Golden Corral owner James Maynard controls a variety of other companies through his Investors Management Corp. All are businesses based in the Raleigh-Durham metro area. Biologics inc. helps patients, hospitals and drug companies manage cancer care. Cornerstone Building alliance llC invests in materials-distribution companies, providing an alternative to private-equity groups. Fleet Feet sports llC, specializing in athletic shoes and running ap- parel, has more than 125 stores in 36 states and the District of Columbia.

Load more