Einstein Bros 2005 Annual Report Download - page 7

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marketing and operating resources. We compete in the quick casual segment of the restaurant industry, but we also consider other players in the
quick service, specialty food, quick casual dining and full service restaurants to be our competitors. Our primary competitors include specialty
food and casual dining restaurants including national, regional and locally owned restaurants.
We also face competition from both restaurants and other specialty retailers for suitable sites for new restaurants and qualified personnel to
operate both new and existing restaurants. There can be no assurance that we will be able to secure or renew leases for adequate sites at acceptable
rent levels or that we will be able to attract a sufficient number of qualified personnel.
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Government Regulation
Each of our locations is subject to licensing and regulation by a number of governmental authorities, which include health, safety, labor,
sanitation, building and fire agencies in the state or municipality in which the restaurant is located. A failure to comply with one or more
regulations could result in the imposition of sanctions, including the closing of locations for an indeterminate period of time or third-party
litigation. Our manufacturing, commissary and distribution facilities are licensed and subject to regulation by either federal, state or local health and
fire codes, and the operation of our trucks are subject to Department of Transportation regulations. We are also subject to federal and state
environmental regulations.
Our franchise operations are subject to Federal Trade Commission (FTC) regulation and various state laws, which regulate the offer and sale
of franchises. Several state laws also regulate substantive aspects of the franchisor-franchisee relationship. The FTC requires us to furnish to
prospective franchisees a franchise offering circular containing prescribed information. Some states in which we might consider franchising also
regulate the sale of franchises and require registration of the franchise offering circular with state authorities. Our ability to sell franchises in those
states is dependent upon obtaining approval of our UFOC by those authorities.
Associates
As of January 3, 2006, we had 7,830 associates, of whom 7,538 were restaurant personnel, 76 were plant and support services personnel, and
216 were corporate personnel. Most restaurant personnel work part-time and are paid on an hourly basis. We have never experienced a work
stoppage and our associates are not represented by a labor organization. We believe that we have good working relationships with our associates.
Executive Officers
Set forth below is information with respect to our executive officers:
Name Age Position
Paul J.B. Murphy III 51 Chief Executive Officer and Director
Daniel J. Dominguez
60 Chief Operating Officer
Richard P. Dutkiewicz
50 Chief Financial Officer
Jill B.W. Sisson
58 General Counsel and Secretary
Paul J.B. Murphy III was appointed Chief Executive Officer and Acting Chairman in October 2003. He served as Acting Chairman until
October 2004. Mr. Murphy joined us in December 1997 as Senior Vice President—Operations and had served as Executive Vice President—
Operations since March 1998. Mr. Murphy was appointed our Chief Operating Officer in June 2002. From July 1996 until December 1997,
Mr. Murphy was Chief Operating Officer of one of our former area developers. From August 1992 until July 1996, Mr. Murphy was Director of
Operations of R&A Foods, L.L.C., an area developer of Boston Chicken. Mr. Murphy has a B.A. degree from Washington and Lee University.
Daniel J. Dominguez was appointed Chief Operating Officer in December 2005. Mr. Dominguez joined us in November 1995 and served as
Senior Vice President of Operations for Noah’ s New York Bagels since April 1998. From 1995 to April 1998, Mr. Dominguez served as the
Director of Operations for Einstein Bros. Midwest. Prior to joining us, Mr. Dominguez was Executive Vice President of JB Patt America, Beverly
Hills, CA, dba Koo Koo Roo Restaurants, from July 1994 to October 1995. From May 1987 to July 1994, he was the Divisional Vice President of
Food Services for Carter Hawley Hale in San Francisco, CA. From November 1976 to May 1987 he was the Vice President of Operations for
Bakers Square Restaurants in California.
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Richard P. Dutkiewicz joined us in October 2003 as Chief Financial Officer. From May 2003 to October 2003, Mr. Dutkiewicz was Vice