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Johnny Rockets Names Shumsky as New CEO

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TIMES STAFF WRITER

The Johnny Rockets Group Inc., a restaurant chain known for well-lit diners with a jukebox on every table, has tapped a new chief executive officer.

Glenn Hemmerle, after little more than two years on the job, suddenly resigned Friday. He has been replaced by Michael R. Shumsky, who has 18 years of management and finance experience in the restaurant industry.

Shumsky, a former president of drive-in eateries operator Sonic Corp. in Oklahoma City and ex-vice president at Taco Bell, has been drafted to help Johnny Rockets expand quickly and profitably in the booming retro diner market.

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“We were fortunate to recruit such a talented CEO to lead the Rockets management team,” Mark Jennings, director of Irvine-based Johnny Rockets, said in a prepared statement. “We are highly confident in Mike’s ability to take Johnny Rockets to the next level.”

Shumsky could not be reached for comment.

Johnny Rockets operates 119 stores worldwide and plans to open an additional 33 stores--13 company-owned and 20 franchise units--during the next year.

In a press release, Shumsky said he hopes to help strengthen the company’s brand identity. At Sonic, Shumsky was responsible for brand development and company and franchise operations, among other duties. He worked at Sonic from 1994 until his resignation in 1998.

Although privately held Johnny Rockets doesn’t disclose sales and profit information, some analysts believe it failed to meet important financial goals under Hemmerle’s leadership.

“Johnny Rockets has a serious problem in that the concept is struggling in some, but not all, of their locations,” said Los Angeles-based restaurant consultant Ray Coen. “Sales and profit growth haven’t been everything they’ve hoped for.”

Sales at Johnny Rockets diners open one year or longer--so-called same-store sales--increased 6% in the fiscal year ended May 2, the company said.

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Randall Hiatt, president of Fessel International, a restaurant consulting firm in Irvine, said the restaurants “weren’t offering as rich a customer experience” because Hemmerle had built larger diners during his tenure that lacked some of the ambience of the smaller units.

Hiatt added that Shumsky was a good candidate to help the company refocus and ramp up growth. “They’re bringing in somebody with a restaurant background, who knows what makes restaurants tick,” Hiatt said. “With Hemmerle, you had somebody with primarily a retail background.”

Hemmerle joined Johnny Rockets in February 1997. A veteran retail specialist, he worked as an executive at Crown Books and Pearle eye-care centers before coming to Johnny Rockets.

Hemmerle could not be reached for comment Wednesday. Company officials said he left to “pursue other interests.”

Johnny Rockets opened its first store in June 1986 on trendy Melrose Avenue in Los Angeles. The diners are a throwback to the late 1940s and early 1950s.

Each Johnny Rockets restaurant features a U-shaped black-and-chrome counter, red bar stools, framed prints of 1940s Americana and lots of burgers, fries and thick malts.

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