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Burger King Corporation and Restaurant Services Inc. Announce Plans to Expand Economic Opportunities in Rural Communities.


HERMITAGE, Ark.--(BUSINESS WIRE)--Nov. 5, 1999--

Burger King Corporation (BKC BKC Burger King Corporation
BKC Bible Knowledge Commentary
BKC Burgess Kershaw Consultants
BKC Bethany Korean Church
BKC Backup Catalog
BKC BatchKennisCentrum (Dutch: Batch Knowledge Centre)
BKC Backup Copy
) and Restaurant Services Inc. (RSI (Repetitive Strain Injury) Ailments of the hands, neck, back and eyes due to computer use. The remedy for RSI is frequent breaks which should include stretching or yoga postures. ), the exclusive purchasing agent Noun 1. purchasing agent - an agent who purchases goods or services for another
agent - a representative who acts on behalf of other persons or organizations
 for the BURGER KING(R) system in the U.S., announced plans today to support a business development initiative by J.L. Degraffenreid & Sons ("De Graffenreid") and the Mississippi Association of Cooperatives ("MAC"). De Graffenreid, a pickle supplier to BURGER KING(R), has expressed its willingness to buy cucumbers from MAC. RSI in turn, has expressed that it will support these efforts in its purchases of pickles from De Graffenreid. The announcement was made during President Clinton's visit to the Little Rock, AR Air Force base, part of a four-state tour in which the President is focusing on how corporations can boost local communities, including rural farm areas. Currently, the BURGER KING(R) system uses approximately 41 million pounds of pickles in its U.S. restaurants.

The initiative is not the first time BKC and RSI have tapped small, rural growers to supply the fast food giant's 8,000 U.S. restaurants with produce. In mid-1996, BKC and RSI entered into a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment.  (MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ) with USDA USDA,
n.pr See United States Department of Agriculture.
 Secretary Dan Glickman to work together to improve economic and business opportunities for rural areas. Hermitage, AR was one of those areas to benefit from the MOU.

During its two growing seasons in 1999 (June/July and Sept/Oct.) the East Arkansas Produce & Marketing Association/Hermitage Tomato Cooperative and the Arkansas Tomato Project provided more than 90,000 cases of tomatoes to the BURGER KING(R) system, producing nearly a half million dollars in revenues for the Arkansas-based Cooperative. During the initial July 1997 harvesting period, the co-op supplied approximately 3500 cases, followed by 61,000 cases in 1998.

"With the accomplishments of the first two years behind us, we were determined to set even higher goals and objectives for 1999," said George Hoffman, president of RSI at President Clinton's Little Rock press conference. "We are very proud to have worked with the Arkansas co-op resulting in a $1.8 million facility expansion and in growing the volume of tomatoes they supply to our system."

A direct outgrowth of these efforts resulted in two new tomato co-op growers and an incremental case movement of tomatoes through the program of 50% over 1998's volume.

"By expanding the number of quality suppliers of key produce items like tomatoes, BURGER KING(R) and RSI are ensuring that our customers get the absolute highest quality ingredients in their WHOPPER Whopper - WarGames (R) sandwiches," said Rick Silva, vice president & general counsel for Burger King Corporation.

"Obviously, this is a win-win situation. Small businesses in rural communities benefit with greater revenues and stability, and companies like BURGER KING(R) and RSI benefit by having access to more suppliers," said Burger King Corporation CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Dennis Malamatinas.

While neither RSI or BKC could comment on projected cucumber orders under the new agreement, Silva noted that Burger King is going through a tremendous growth period and, with that growth, comes the need for more produce, like tomatoes and pickles, to satisfy consumer demand.

Burger King Corporation and its franchisees operate more than 10,600 restaurants in all 50 states and 54 countries and international territories around the world. Since the company's founding in Miami in 1954, the BURGER KING(R) brand has become recognized for great flame-broiled taste and HAVE IT YOUR WAY(R) food customization. In fiscal year 1999, the BURGER KING(R) system has system-wide sales of $10.9 billion. Burger King Corporation is a part of Diageo (NYSE NYSE

See: New York Stock Exchange
: DEO DEO Deodorant
DEO Diversification de l'Economie de l'Ouest Canada (Western Economic Diversification Canada)
DEO Diversification de l'Économie de l'Ouest Canada (Western Economic Diversification Canada) 
), the international food and drinks company, that includes such brands as Pillsbury, Haagen Dazs, and Guinness. To learn more about the BURGER KING(R) system, please visit the company's website at www.burgerking.com.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 5, 1999
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