DEERFIELD Ill. Sandwich-chain operator Cosi Inc. has named Bob Merritt, a former chief financial officer of Outback Steakhouse's parent company, to serve as interim chief executive officer. He succeeds Kevin Armstrong, who resigned for health reasons, Cosi said.
Cosi, which operates 110 fast-casual sandwich shops and franchises 19 others, said its board has commenced the search for a fulltime replacement for Armstrong. No details were disclosed about the nature of Armstrong's health issues. But Cosi chairman William Forrest commented that "Kevin cannot continue his duties," and said the board was saddened by his departure.
Until a replacement is found, Cosi's day-to-day operations will be overseen by Merritt, who has served on Cosi's board. "Bob Merritt knows Cosi, he has helped shape our growth plans, and his accomplishments with Outback command deep respect throughout the restaurant industry and franchise community," Forrest said. He noted that the change in leadership does not signal a change in the company's direction.
Merritt, widely praised within casual dining for his 16-year performance as CFO of what is now OSI Restaurant Partners Inc., resigned from that post in April 2005 during a conference call with analysts. At the time, his and other casual-dining companies were grappling with changes in the accounting procedures for restaurant leases, which had a significant impact on earnings. Merritt termed the changes and subsequent hubbub "lunacy," and told investors during the call that the matter "took me past the breaking point."
He stepped away from the industry, limiting his involvement virtually to serving on Cosi's board. Cosi is based here.
