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Diving certificate:
- Michael Spanos, former Delta Airlines executive, will join Bloomin’ Brands as CEO from 3 Septemberthe company announced on Monday. Spanos will also sit on the company’s board of directors.
- David Deno, whose resignation announced in Maywill remain with the company until the end of the year.
- Spanos is leaving his position as Executive Vice President and Chief Operating Officer at Delta Air Lines to take the top job at Bloomin’. Outback, the company’s flagship brand, is working to turn around operations after stagnating sales growth in comparable stores.
Diving insight:
In addition to Outback’s problems, Bloomin’s smaller brands also struggled with traffic problems. Earlier this year, Bloomin’ closed its doors to strengthen the brand. several dozen locations with poor performance.
In the second quarter, both Bonefish Grill and Fleming’s Prime Steakhouse and Wine Bar reported comparable restaurant sales. Only Carrabba’s Italian Grill, which represents about 14% of Bloomin’s global store system, reported comparable store sales growth last quarter, according to the Company earnings announcement.
Spanos moves from one operationally struggling company to another. Delta recently Thousands of flights cancelled between 19 and 28 July as a result of the July Crowdstrike bug. Delta’s operational problems lasted longer than some other U.S. airlines and led to a class-action lawsuit by consumers seeking refunds.
However, Spanos has considerable experience in the hospitality and food and beverage industries. Prior to Delta, he was CEO and president of Six Flags Entertainment and held a variety of leadership roles during his more than 25 years at PepsiCo, including president of Greater China, CEO of Asia, Middle East and North Africa, and chief customer officer for North American beverages.
Michael Mohan, Bloomin’s chief executive, said Spanos’ experience in running complex, multi-branch businesses would be a boon to the company.
“He puts the customer first and guides established organizations through challenging environments,” Mohan said.
