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Così CEO welcomes challenge of turnaround

Così CEO welcomes challenge of turnaround

R.J. Dourney discusses his plans for the fast-casual chain

When R.J. Dourney was named chief executive officer of Così Inc. and placed on the board of directors in March, he welcomed the challenge with open arms.

When Nation’s Restaurant News asked if he had any apprehensions about taking the reins at the 121-unit fast-casual operator that has been riddled with financial problems for the better part of a decade, he replied, “None at all.”

Dourney, whose holding company Hearthstone Associates is the largest franchisee of Boston-based Così, and has previously held executive positions at Au Bon Pain and Applebee’s International, felt the brand was in a position for a turnaround and that he was the man for the job.

He recently spoke with Nation’s Restaurant News about how he is leveraging his experience and the brand’s strengths to return Così to success.

How has your experience positioned you for success at Così?

There are two components to my history that we are leveraging. I was very fortunate to work for two best-in-class organizations on the corporate side. I joined Brinker, specifically Chili’s, early. I think we had 21 restaurants when I joined Chili’s as a manager and left when we had about 850. I saw what it took to grow a company the right way. I never reported to Mr. Brinker, but I spent enough time with him to see what it takes to create a world-class company.

Similarly, I joined Applebee’s early. I think we had somewhere around 500 units when I got there and 1,300 when I left. I became a Così franchisee eight years ago. The holding company that I own, Hearthstone, is the largest Così franchisee and is in its ninth year of positive same-store sales, and has been a really successful piece of business.

What are you doing to turn things around from a financial perspective?

The first 72 hours after I took over, I did a triage. I did a very deep dive into the balance sheet and the portfolio, and there were a few things that were glaringly apparent. There were 10 locations that had never made money and were never going to make money, and they were costing the company $2 million a year. It cost me $1.3 million to get out of 10 leases, but it was the right thing to do.

The biggest step that we took is that I shuttered a 27,000-square-foot support center and office in Deerfield, Ill., and relocated the office here to Boston, with a 7,000-square-foot office, and I built a new team. These are world-class players.

Simultaneously, we have a refresh initiative that is getting ready to launch. New York will be one of the first markets it hits. Those locations are tired. If you don’t paint the restaurants on a regular basis, they don’t look fresh. You are going to see some pretty cool stuff happening pretty quickly in New York.

What about in terms of growth?

Step one is we’ve got to make money. When you are profitable, the world is your oyster. There is a lot of room out there for the next Panera or the next Chipotle. We just want to keep our heads down, work hard, make money and start building restaurants again.

What is it about Così that still resonates with consumers?

The industry and the American palate are going towards better ingredients, healthy, etc. That’s Così. That’s the brand. We are raising the bar on everything.

Was there any apprehension over taking a CEO position at a company that has not been profitable for nine years?

None at all. I see this as very profitable enterprise. I see this a company with a culture where communities want us to be in their community and people want to come work here.

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