Pillsbury’s Restaurant Group Gets New Chief

The Pillsbury Co., which has had increasing problems with the performance of its restaurant operations in recent years, has announced the resignation of J. Jeffrey Campbell as chairman and chief executive of the restaurant group.

The diversified food concern, based in Minneapolis, which gave no reason for the resignation, later announced a series of management changes. A Pillsbury spokesman said the changes amount to a redistribution of Campbell’s responsibilities and the abolition of his job as chairman of the restaurant group.

Charles S. Olcott, 41, was named president and chief operating officer of Pillsbury’s ailing Burger King subsidiary to oversee U.S and international operations. Olcott had been president of the domestic Burger King segment.

Asked whether Pillsbury would fill Campbell’s position, the spokesman, Larry Haeg, replied: “Not as we are presently structured.”

Pillsbury stock closed up $1 at $36.75 Monday on the New York Stock Exchange.

Several food industry analysts saw Campbell’s resignation as the result of the company’s dissatisfaction with Pillsbury’s restaurant operations.

“Restaurant operating profits should be down 8% this year, and were down 13% last year. If he were a baseball manager, he’d have been fired years ago,” said analyst John McMillin of Prudential-Bache Research.

Campbell’s departure is the second major shake-up in Pillsbury management this year. On Feb. 29, the company’s former head, William H. Spoor, returned as chairman and chief executive, replacing his one-time protege, John Stafford. The change followed mounting concern over lackluster performance in the restaurant division.

Burger King, which contributes about 40% of Pillsbury’s operating income, has lost market share to McDonald’s Corp. Its share fell this year to 17% of fast-food outlets from a 17.4% high in 1986.

On March 17, the company announced plans to sell its 580-unit Godfather’s pizza chain. It also said it would sell or close less-profitable branches of its Steak & Ale and Bennigan’s chains and reorganize its Burger King operations.

Despite these actions, Prudential-Bache’s McMillin said results remain poor, making it no surprise that Campbell left.

“The company was dissatisfied with him,” agreed food industry analyst Nomi Ghez of Goldman, Sachs & Co.

Ghez expects Pillsbury to announce at analysts’ meetings in Minneapolis on Tuesday and New York on Thursday increased spending in fiscal 1989 in the restaurant division. The spending likely will be for capital investment, remodeling and marketing efforts, she said.

Pillsbury also announced the following management changes Monday:

- Richard T. Crowder, 48, senior vice president and corporate risk officer, assumed the added responsibility of Distron, Burger King’s distribution and procurement division.

- Jerry W. Levin, 44, executive vice president for corporate development, assumed added responsibility for S&A; Restaurant Corp., which includes Steak & Ale and Bennigan’s.

- John L. Morrison, 43, executive vice president and chairman of Pillsbury U.S. Foods, was given added responsibility for the Haagen-Dazs Co.