1992: changing the way they do business.

• Author: Browning-Hess, Teresa
• Position: Five Utah-based businesses look to 1992

1992 Changing the Way They Do Business

In today's volatile economy, where market conditions can fluctuate with the rapidity of a mercurial summer storm, many companies must make fundamental changes in the way they have traditionally conducted business in order to survive.

Increasingly, global competition, tightening of financial markets and a drop in defense spending are only some of the specters being faced by Utah businesses. It's a "survival of the fittest" scenario, and those companies which adapt and evolve to meet new challenges are most likely to endure and prosper.

Some notable companies which call Utah home will be forging ahead with new business strategies or continuing with recently implemented plans this year. Whether it's in response to downturns in their respective industries or a proactive approach to competition, 1992 will for many mark a transitional year.

Broadening the Base: JB's Restaurants Inc.

In September of 1988, when Salt lake-based JB's Restaurants Inc. severed its ties with the Marriot Corp.-owned Big Boy franchise, upper management breathed a sigh of relief. Marriot's sale of the franchise allowed JB's to walk from its agreement without financial penalty and to abandon a concept that was suffering from image problems and loose organization.

At the time, JB's operated 115 restaurants, the first of which was launched in Provo in 1961. Today, having implemented upgrades in the facilities, service and menus of its flagship chain, now grown to 136 in 10 states, JB's is looking to new restaurant concepts for increased profitability, according to David E. Pertl, vice president and chief financial officer.

"We will continue to work toward improving sales volume and profits at JB's, but we won't be opening additional locations," Pertl said. "As a corporation, we've had to look hard at financial returns, and they were low for JB's compared with others in the industry. We began investigating restaurant concepts that would provide a higher return on equity and sales, and we believe we've found them in Sbarro and Home Town Buffet," he added.

Sbarro, a chain of fast food restaurants which offer a variety of pizza and pasta products, operated primarily in food court locations at regional malls. JB's entered a franchise development agreement in November of 1990 to open at least 24 outlets over a three-year period in Utah, Arizona, and Oregon, and has launched four thus far. Plans call for an additional nine locations in 1992, Pertl said.

In the fall of 1991, JB's also inked a franchise pact to develop a minimum of 12 Home Town Buffet restaurants in a four-state territory including Utah within the next three years. The agreement followed a $3.8 million investment to acquire...