Quaker Steak taps Sizzler USA executive

The new CEO’s contacts are expected to help Quaker Steak to grow.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

SHARON, Pa. — A Los Angeles executive from Sizzler USA will become chief executive of Quaker Steak & Lube.

Ken Cole starts Feb. 25 and is the first outside CEO hired by the Sharon-based restaurant chain. He resigned last week as president and CEO of the California-based steakhouse chain.

George “Jig” Warren, who now is Quaker Steak CEO, said the hiring allows him and co-founder Gary Meszaros to slow down.

Mostly, however, the decision is about the growth of the chain, Warren said. Quaker Steak is continuing to expand and will be stronger under Cole because of his experience in working with franchisees and operating a large chain, Warren said.

By running a national chain, Cole, 53, has developed many contacts among franchisees, investors, developers and managers, Warren said.

“He gives us a networking advantage,” Warren said.

Cole was interested in the job because Sizzler is being sold and he wants to be closer to his native state of West Virginia, Warren said.

An Australian-based investor group that bought Sizzler in 2005 is looking for a buyer and hopes to complete a sale within six months. Los Angels-based Sizzler USA has 223 restaurants in 16 states and Puerto Rico, while an international unit has about 80 other restaurants.

Cole has maintained a residence in West Virginia while running the Sizzler chain since 2001. His parents, his wife’s parents and daughter live in the Morgantown, W.Va., area.

As Cole comes aboard, Warren, 63, and Meszaros, 61, will become executive vice presidents and vice chairmen of the board of directors. Meszaros is now chief operating officer.

Warren said they still will be active in the company and will be in the office each work day that they are not traveling on business. Their activities will include working with the three company-owned restaurants, assisting the executive staff and visiting restaurants.

Warren said the company’s development office could use their help because it is staffed with one person. That office is responsible for looking for franchisees and new restaurant locations, both of which require travel.

Warren and Meszaros opened the original Quaker Steak restaurant in Sharon in 1974 after running another restaurant for three years.

They started franchising other locations in 1997, and now they have 29 company-owned and franchised restaurants in 10 states. Warren said they expect to reach 50 locations in 2010.

In 2003, the founders prepared for the growth by creating a board of directors and bringing in Michael Stack, a restaurant industry veteran, as chairman of the board. Outside investment came into the company at the time, but the founders retained a controlling interest.

shilling@vindy.com