VICORP RESTAURANTS INC history

Emerson B. Kendall, who had served as president of Poppin' Fresh Pies since 1975, was kept on as president of the new Bakers Square division, which was operated out of an existing office in Matteson, Illinois.

In 1977, with 40 company-owned restaurants and an additional 85 franchises under its corporate umbrella, the chain was sold for $7.5 million in a leveraged buyout.

In particular, Vicorp will have to work hard to absorb its latest purchase, Sambo's Restaurants Inc., the California-based chain that has been operating under a Chapter 11 proceeding since November 1981.

At the end of the 1983 fiscal year, the Ralston Purina Company's Continental Restaurant Systems was acquired for $61 million, giving Vicorp an entry into the Sun Belt.

They said 1985 should see revenues increase dramatically again to about $410 million, with net income jumping to $11 million, or $1.50 a share.

The sale of 15 Village Inn restaurants in Florida also provided VICORP with a substantial write-off for 1988.

On November 1, 1990, the company became aware of what it called accounting "irregularities" and disclosed a statement reassessing its earnings for the year at a value $4 million less than had been expected.

Perhaps the single most important individual in overseeing these plans was James Caruso, named president of Village Inn in 1991.

Declining sales--not only in California, but also in the Midwest division--culminated in the firing of president Emerson B. Kendall and executive vice-president of marketing, J.D. "Jim" Fisher, in November 1993.

In 1994, the chain also expanded its line of hamburgers, hoping to take a portion of the lunch market from fast-food competitors.

While the company reported a loss of $929,000 in 1996, management felt that VICORP was better positioned to capture future profits as a result of its renewed focus and operational changes.

Indeed, the firm's financial position began to improve, and in 1998 the company opened three new restaurants.

While revenues rose during 2000, earnings fell by 15 percent over the previous year, due in part to the expense related to hiring Salomon Smith Barney.