Chart House Enterprises

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International Guild of Hospitality & Restaurant Managers

Chart House Enterprises, Inc. and its subsidiaries operated 46 restaurants, consisting of 40 Chart House restaurants, one Peohe's restaurant and five Angelo and Maxie's steakhouses, as of December 25, 2000. The Angelo and Maxie's steakhouse concept was acquired in April 1999. The Company was incorporated on July 25, 1985.

Chart House operations commenced in 1961 with the opening of the first Chart House in Aspen, Colorado, by a predecessor of the Company. Chart House restaurants are full-service, casual seafood dinner houses, with a menu featuring fresh fish and seafood, as well as steaks, chicken and prime rib. Many of the Chart House restaurants feature a salad bar where the customer prepares his or her own salad and selects from various appetizers.

The Company opened its Peohe's restaurant in January 1988 in Coronado, California, overlooking San Diego Bay and the San Diego City skyline. Although similar to the Company's Chart House restaurants in many respects, Peohe's opened under a different name, in part to minimize confusion and competition with other nearby Chart House restaurants, and also to provide Chart House management a suitable vehicle for experimentation and development of different menu items, restaurant design and operating concepts. Peohe's has a more extensive and higher priced menu, higher level of service and greater variety of cooking techniques than the typical Chart House restaurant. In 2000, the restaurant introduced a full service sushi bar.

In April 1999, the Company acquired the Angelo and Maxie's steakhouse in New York, New York. Angelo and Maxie's is a smoke-friendly establishment that sells a revolving selection of premium cigars at the restaurant. The Company places great emphasis upon the location, exterior and interior design of each restaurant. Each restaurant is designed to fit within and complement its surroundings. A significant remodeling program of Chart House restaurants commenced in 1998.

Alcoholic beverages are available at all locations. The sale of alcoholic beverages accounted for approximately 23% of the revenues generated during each of the past three years.

Operations

Each restaurant is managed by one general manager, and between two and seven assistant managers, depending on the operating characteristics and size of the restaurant. On average, general managers possess approximately five years experience with the Company. Each general manager is required to comply with an extensive operations manual that contains procedures to ensure uniform operations, consist products and service and proper accounting for restaurant operations. The general manager and his or her assistants are responsible for training restaurant employees under a training program managed by the Company's Director of Training. Assistant managers generally are required to participate in a comprehensive management development program that emphasizes the Company's operating strategies, procedures and standards. The aim of this program is to provide each manager with the tools needed to thrive in progressive management assignments.

The Company's long-term strategies include expanding both the Chart House concept and the Angelo and Maxie's concept. This plan includes opening two Angelo and Maxie's in 2001 (West Palm Beach, Florida and Reston, Virginia). The Company's focus in 2001 will be to maximize its investment in the five new Angelo and Maxie's locations that will exist outside of New York City, where two Angelo and Maxie's restaurants are located.

When identifying and developing future restaurant sites, the Company places emphasis on a potential site's physical location. Trade area demographics, traffic volume, visibility and accessibility are all key performance indicators analyzed by management. Sales and profit projections are then prepared to determine whether the economics of investment are sound. The Company accords great importance to the selection of, and coordination with, the architect to ensure that the proposed restaurant structure fits the Company image. Senior management is involved extensively in each facet of the site selection process.

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Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.