Crains New York - January 14, 2013 - (Page 3)

FAST-FOOD KING NO MORE Dennis Riese is flush with cash and ready to invest in pricier restaurants BY LISA FICKENSCHER The Riese Organization, one of the largest and oldest restaurant operators in the city, has generated its share of unwanted headlines over the years, including a bankruptcy in 1999 and widely publicized photographs of vermin nibbling on pastries in Riese-owned Dunkin’ Donuts stores. The ensuing media frenzy resulted in Dunkin’ Donuts kicking Riese out of its franchise in 2009. But Dennis Riese, whose father, Murray, and his brother, Irving, founded the business in 1940 and amassed vast real estate holdings, is now steering the company in a new direction,and trying to shed his reputation as the fast-food king of the Big Apple. “We will be much less known for fast food,” said Mr. Riese, chairman and chief executive. “I haven’t liked that identity.” For the first time in many years, Mr.Riese,62,can boast that the privately held company has enough cash lying around to make the kinds of changes he’s been dreaming about. After more than a decade of struggle because of debt assumed by the first generation of Rieses, the company two years ago pocketed about $85 million by selling a fourstory building in Times Square, 1552 Broadway, where it had operated a T.G.I. Friday’s—one of 10 it See FAST FOOD on Page 37 Bricks-and-mortar Macy’s shows it can make big bucks online It took more than a decade, but tech miracles are taking place on 34th Street BY ADRIANNE PASQUARELLI Macy’s Inc. was one of a handful of major retailers this holiday season whose sales were not stolen by the Grinch. Its secret weapon against stingy shoppers? E-commerce.The 850-unit chain logged a 4.1% December gain in same-store sales, led by a 52% increase in online sales. “We have taken a number of steps to make the shopping experience online mirror the stores, and vice versa,” said Jeff Kantor, chairman of Macys.com. “We want customers to be able to shop Macy’s whenever, wherever and however they prefer. Reaching customers through stores, online and mobile gives us a lot of flexibility.” To get ahead of the pack,Macy’s Chief Executive Terry Lundgren The store passed the $2B mark in Internet sales in 2012 has moved the store beyond its bricks-and-mortar roots to become more nimble technologically. Today, its website employs 1,150 workers, 650 of whom are based in Manhattan (where they make up a significant portion of the borough’s technology workforce). In the past year, the department store, which had 2011 net sales of $26.4 billion, has greatly improved its inventory strategy by building new warehouses and drafting nearly 300 stores to act as e-commerce fulfillment centers.Online orders will rarely be out of stock. Macy’s has also made its stores more innovative: The Herald Square flagship this past fall unveiled a 39,000-square-foot shoe department where associates use iPod Touch devices as cash registers, making checkout a relative breeze. “The Internet has not only helped Macy’s engage and serve new customers, but it has also helped them serve existing customers better,” said Liz Dunn, a retail analyst at Macquarie Capital See MACY’S on Page 16 CASH COW: Dennis Riese sold his T.G.I. Friday’s building in Times Square for an $85 million profit. IN THE BOROUGHS MANHATTAN City hits reset on Broadway Pedestrian lanes prove popular with all too many folks BY ANNIE KARNI Early last year, community leaders in Manhattan’s garment district asked for an emergency meeting with the city’s Department of Transportation. They needed to discuss the DOT’s four-year-old bike lane—a green-painted sliver of pavement stretching along Broadway between West 35th and West 42nd streets. As local leaders saw it, instead of improving the quality of life in the densely packed neighborhood, the bike lane and adjacent maroon pedestrian plaza were wreaking havoc. Pedestrians looking for a chair in the new plaza or simply sauntering down the lane as an extension of the sidewalk were constantly getting nailed by cyclists. The standard midtown din of blaring horns and sirens was increasingly punctuated with frantic cries from bike messengers: “Hey, you, get out of the bike lane!” Frustrated, many cyclists gave up weaving between pedestrians and took to the car lanes. Others rode against traffic, heading north in the southSee B’WAY on Page 16 STATS AND THE CITY GESUNDHEIT!Cover your nose and scrub your hands. This flu season is the nastiest in years. Boston has already declared a health emergency. New Yorkers hospitalized with flu in the first week of year, up 55% over the previous week 1,120 Number of flu cases in the state since October Weeks it takes for a flu shot to be effective 19,128 2 Amount U.S. businesses pay out in medical costs during a typical flu season Seconds recommended for washing hands, the same as humming “Happy Birthday” twice $10B 20 Sources: Centers for Disease Control and Prevention; NYC Department of Health and Mental Hygiene ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY January 14, 2013 | Crain’s New York Business | 3 buck ennis istockphoto http://www.Macys.com

Table of Contents for the Digital Edition of Crains New York - January 14, 2013

Crains New York - January 14, 2013
In the Boroughs
In the Markets
The Insider
Business People
Opinion
Greg David
Small Business
Report: Real Estate
The List
Classifieds
New York, New York
Source Breakfast
Out and About
Snaps

Crains New York - January 14, 2013