Economic reports for the third quarter offer some optimism as we approach the final quarter of 2004. But, as ever, we cannot afford to be complacent, especially those of us in the food service industry. Increases in fuel and utility costs have affected everyone, and price increases in commodities like beef, chicken and dairy have affected our restaurants. The cost of cheese, for example, rose about 70 percent from last year!

None of us has control over the fact that gasoline costs $2 a gallon, and certain business factors are also beyond our control. The best way to meet economic fluctuations is by TAKING CARE OF BUSINESS – by focusing on giving our customers the best dining experience possible. That’s something very much under our control.

In the restaurant business we are all competing for the same dollar. People may choose a restaurant for its food, but it is more often the service and the overall dining experience that brings them back (or not). Beyond serving customers good food efficiently, we must make their experience so pleasurable that they become “fans”. If, instead of lamenting the fact that costs are up, we focus on giving our regular customers an experience that brings them back — not once a month but twice a month, or not once a week but twice a week — then we build and strengthen our business.

To this end, both Briad Wendy’s and T.G.I. Friday’s restaurant divisions have hospitality and courtesy initiatives in place that clearly focus on guests and customers. Paying attention to the customer is the backbone of the plan that was rolled out at the annual brand meetings. Now, thanks to your hard work, more than eight months into 2004, we are on track. It’s vital that we not become distracted, that we exploit the momentum we have achieved by sticking to the plan. The Friday’s slogan: “Momentum – 1-40-05” expresses the goal of being first in casual dining by T.G.I. Friday’s 40th Anniversary in 2005. This goal can be attained if the Friday’s team maintains their momentum. Maintaining customer focus will also strengthen our Wendy’s division. That’s “Taking Care of Business.

”The Briad Group continues to build company momentum by expanding its activities. In this issue of VISION you’ll find an announcement of the formation of a new hospitality REIT(Real Estate Investment Trust) of which Brad Honigfeld is Director, Chairman of the Board and Chief Financial Officer/Treasurer. There’s also an article about our newest division, Briad Construction Services.You will also find a notice from Tom Mueller, President of Wendy’s North America about attempts to obtain confidential information from some Wendy’s employees. This brings to mind another way of “Taking Care of Business.” This business belongs to each of us – to you and me. We may strive for an easy, casual atmosphere in our restaurants and with our customers, but casual remarks about business specifics can be damaging. We have an obligation to The Briad Group, to Wendy’s and T.G.I. Friday’s, and to our fellow employees to keep details of sales, marketing initiatives, etc. within the Briad “family”. If someone asks you for information that might be sensitive, please refer him or her to me and I will respond as spokesperson for the company.