The Atlanta Constitution from Atlanta, Georgia • 213

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And save on commissions. neany 1,100 restaurants owned or chance to expand his own company. A merger was arranged in 1971, and Danner became the chairman and dominant shareholder in the company that came to be known as Shoney's Inc. Danner made his mark on the company by diversifying, expanding and giving Shoney's its operations-oriented style. He is credited with fashioning the company into a mature restaurant with units handling functions such as marketing, product development and real estate.

In fact, Shoney's officials say -O franchised bv the comnanv. Shonev's owns and franchises the national then a leading Big Boy franchisee in the Southeast. Schoenbaum, now a major stockholder in Shoney's and the company's namesake, encouraged the two to think bigger and to open several restaurants in the more populous Nashville area. They were quickly won over. In 1959, the two opened their first restaurant in a Nashville suburb and by 1965, they were operating five more.

Danner's aspirations eventually eclipsed his partner's, and he bought his partner out. But that still wasn't enough for Danner to run. When Schoenbaum made it known that he was interested in selling his business, Danner jumped at the short-order seafood Captain D's chain; Lee's I Famous Recipe Chicken fried chicken restaurants and a MjJ sprinkling of higher-price steak EiO houses. ewer First Southeastern Company i u. Ci Knir A.I.

i tiC 3UUintMltKfl MpmrwrSIPCatviNASn me company aiso nas licensed 11 COMPANY Securities protected to $2,500,000 M.1 Money inn motels and operates a 7K See SHONEY'S division that distributes and manu- foactures foods and supplies for its The distribution arm, oy culling out nuaaiemen ana Dy 1 buying in bulk, reduces the cost of its supplies. "Beverly Feagin, an analyst with commodore Computers, Peripherals and Software. J.C. Bradford Co. in Nashville, said the company's diversification MON THURS.

10- 6 CD HAV Ifl m. the 474 inc. How to get moire than you way for in an office computer system. Sunday CLOSED (rom Pinetree Plaza Shopping Center 5280-F BUFORD HIGHWAY DORAVILLE 4553492 roll up their shirt sleeves literally and correct problems themselves. For instance, there was the time three years ago when Spoleta and a Shoney's division director stopped at one of the coffee shops in Kansas City and found it overflowing with customers waiting to be served.

To help the restaurant's small staff, Spoleta started washing dishes and had the two dishwashers bus tables. The division director took over as host, and the hostess waited tables. Three hours later, operations were back to normal. "We made every customer happy. But we had to bust our tails to do it," Spoleta recalled.

1 "We all work every holiday," he added. "Why? Because I'm no better than anyone at any store." The company's commitment to close management supervision runs deep. Each Shoney's coffee shop has seven managers, two or three more than many of its competitors: Middle-level and senior-level executives tend to come up through the company ranks, ensuring they will be familiar with operations. And division directors, normally responsible for up to 25 restaurants, are given the authority to make changes on their own. "They can paint the restaurants green if they want to," Spoleta said.

"We have no strategic planners. No MBAs. We have no layers." The decentralized management style at Shoney's probably stems from its chairman's background in the business. Danner, 59, the son of a German-born paperhanger, got started in the restaurant business as a Shoney's franchisee in 1959. Despite his poor origins, Danner had built up his assets with a string of modest but successful ventures in the grocery, real estate and drive-in theater businesses.

Impressed by what he saw of the restaurant's curbside service in his hometown of Louisville, Danner and a partner made plans to apply for a franchise in Clarksville, where Danner had run a drive-in theater. They visited Alex Schoenbaum, fW nri 0) TO jvJUD iso VJU Discover the Personal Productivity Center from Hewlett-Packard $20,000 fo $150,000 has enabled it to maintain consistent growth even when one of its divisions slumps. With the exception of few upscale seafood restaurants that flopped, Shoney's new ventures have fared well. Ms. Feagin also credits Shoney's policy of financing more than 80 percent of its expansion with its own cash flow, instead of borrowed funds, with keeping the company on solid footing.

Since 1978, the company's annual growth in revenues has averaged 23 percept, while annual profit increases averaged 30 percent Shoney's executives say the principal source of the company's; strength, however, is the close atten-, tion management pays to Top executives, including Danner and Spoleto, spend several days every week inspecting company res- taurants. They also pay what they call "secret shoppers" to eat at their and evaluate their quality. "If something is going wrong, they 'know about it quickly, and they do something about it quickly," Ms. Feagin said. Senior managers are known to A new world of office productivity.

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