<PAGE>
 
EXHIBIT 10-O

                                March 10, 1997


PERSONAL & CONFIDENTIAL
-----------------------


Mr. William Moreton
10210 Delmar
Shawnee Mission, Kansas  66207

     Re: Summary of Position and Compensation
         ------------------------------------

Dear Bill:

I enclose a description of several items relating to your position and
compensation with Quality Dining, Inc.  I would appreciate your review and
comment on these items and I look forward to discussing them with you.

POSITION:
---------

Senior Vice President, Treasurer and Chief Financial Officer, Quality Dining,
Inc.

TIME PERIOD:
------------

March 15, 1997 through fiscal year end October 25, 1998.

REPORTING RESPONSIBILITY:
-------------------------

Daniel B. Fitzpatrick, Chairman, President and Chief Executive Officer

SALARY:
-------

Your salary rate will begin at $225,000 per annum and maintain that level
through October 26, 1997.  On March 1, 1998, your salary rate will be increased
to $240,000 per annum and remain there through the end of fiscal year 1998.
<PAGE>
 
BONUS:
------

There will be a bonus allotment of 50% of your actual salary earned in each
fiscal year. The actual payment will be pro rated for your service time in each
fiscal year and paid pursuant to our normal bonus payment guidelines of payment
within 75 days of fiscal year end. All payments will be made in the form of cash
and processed through our normal payroll system and of course, subject to all
applicable deductions required by law for payroll taxes and the like.

In addition to the above-referenced bonus payments and criteria, the Company
will guarantee a minimum payment of $40,000 for bonus earned in Fiscal Year 1997
and $50,000 for bonus earned in Fiscal Year 1998.

ANNUAL STOCK OPTION GRANTS:
---------------------------

Pursuant to guidelines established by the Board of Directors of the Company, the
Company intends upon awarding you with stock options on a once annual basis.
The formula for awarding stock options will be determined by the Company's Board
of Directors.

INITIAL STOCK OPTION GRANT:
---------------------------

In addition to other stock options which you may qualify for on the date of
hire, you will receive a grant of 50,000 shares which will vest over three years
pursuant to the following schedule:

          One year from your date of hire:     25%
          Two years from your date of hire:    50%
          Three years from your date of hire: 100%
 
This grant shall be subject to any and all other terms and conditions of the
Company's Stock Option Plan.  The option will be priced at the closing price on
the initial date of your employment.

Furthermore, your annual grant for FY '97, if such grant is made to any
Executive Officers for FY '97, will not be less than 25,000 shares.

AUTO EXPENSE:
-------------

The Company will extend to you an auto allowance of $500 per month as
reimbursement for your use of an automobile in connection with your duties.

GROUP INSURANCE:
----------------

The Company will extend its standard Company-wide group health insurance benefit
which includes hospitalization, major medical, long term disability, life
insurance and other miscellaneous benefits. This coverage will be extended to
you and your eligible dependents. The exact benefits, coverages and terms and
conditions will be provided by our Human Resources Department.

LIFE INSURANCE:
---------------

The Company will supply you with a life insurance policy in the amount of two
times your annual salary, with distribution of death benefits to your family or
estate. In order to qualify for this benefit, you must be insurable and meet
other qualifications necessary for a standard life insurance policy to be
issued.

                                       2
<PAGE>
 
VACATION:
---------

The Company will extend to you a vacation time of three weeks to be taken at an
agreed upon time during the fiscal year.


PENSION/PROFIT SHARING AND 401K PROGRAM:
--------------------------------------- 

You are included in the Company's Pension/Profit Sharing and 401K Program. At
appropriate intervals, you will receive full disclosure of your account within
the Plan, inclusive of the balance and status of your vesting schedule from our
Human Resources Department. With respect to this Plan, you must also meet all
eligibility requirements as specified by the Plan. More details on this Plan are
available from the Human Resources Department.


MOVING EXPENSES:
----------------

The Company will supply you with an allowance for relocation and living expenses
currently estimated to include moving expenses utilizing a professional mover to
package household goods and transport them to the South Bend, Indiana area and
other customary in the sale of your current home and secural of your next
residence in the South Bend area. Your allowance shall not exceed $30,000. All
moving and related expenses shall be submitted to the Vice President of Human
Resources for approval and processing.

SEVERANCE:
----------

Notwithstanding anything contained to the contrary herein, in the event that you
are terminated from your employment without cause, you will receive payment in
an amount equal to one year of your current salary. In the event that your
termination is do to cause, you will not be entitled to any severance benefit
and/or any other benefits which would cease in the ordinary course of your
termination.


CHANGE IN CONTROL:
------------------

If there is a "Change in Control" at the Company, at any time prior to five
years from the date of your initial hire date, the Company will furnish the
following additional benefits:

     1.   Salary Continuation. Your salary will continue for a period of 2.99
          years from the date of the Change in Control, provided your position
          (including, without limitation), your status, offices, titles and
          reporting relationships, authority, duties and responsibilities
          following the Change in Control date is not at least commensurate in
          all material respects with the most significant of those held or
          exercised by, and/or assigned to you at any time during the ninety
          (90) day period immediately preceding the Change in Control date. At
          the election of the Company, the Company may elect to pay you the
          entire salaried continuation benefit in one lump sum payment within 30
          days of your termination.

     2.   As currently exists in Quality Dining, Inc.'s Stock Option Plan, a
          Change in Control will allow for the immediate vesting of all options
          granted. To the extent that this policy for any reason would ever be
          modified by proper action taken by the Board of Directors of Quality
          Dining, Inc., the Company will agree to vest all unvested options at
          the time of the Change in Control.

As used herein, "Change in Control" shall have the same meaning ascribed to it
in the Company's Stock Option Plan in effect on the date of a Change in Control.
See enclosed copy of the 1993 Stock Option and Incentive Plan.

                                       3
<PAGE>
 
No benefits, bonuses, salary of any kind whatsoever shall accrue or deemed to be
earned unless paid. In order to receive any form of compensation or benefit
other than salary, you must be continuously employed by the Company through the
date of payment. All forms of compensation, benefits, etc. shall be administered
by the Company consistent with its policies which can be changed at the
Company's sole discretion without notice.

This letter is not intended to be an employment contract. All employment with
Quality Dining, Inc., and its subsidiaries, is entered into on an at will basis,
i.e. the employment relationship may be terminated at any time at the will of
the employer or the employee.

If you have any questions concerning the above compensation program, please feel
free to contact me directly.

                                       Sincerely,

                                       QUALITY DINING, INC.


                                       /s/ Daniel B. Fitzpatrick
                                       --------------------------
                                       Daniel B. Fitzpatrick
DBF:tmg                                Chairman, President & CEO



ACCEPTED:



/s/ William Moreton
-------------------
William Moreton

                                       4
<PAGE>
 
EXHIBIT 10-O

                                April 29, 1997




PERSONAL & CONFIDENTIAL
-----------------------


Mr. William Moreton
10210 Delmar
Shawnee Mission, Kansas  66207

     Re: Summary of Position and Compensation
         ------------------------------------

Dear Bill:

This letter is intended to supersede a previously agreed to letter dated March
10, 1997, a copy of which is attached. This letter contains material
modifications to your previous compensation letter. I would ask for you to
review these matters and upon agreeing to them, executing this letter as
indicated below.


POSITION:
---------

Executive Vice President, Treasurer and Chief Financial Officer, Quality Dining,
Inc.


TIME PERIOD:
------------

March 15, 1997 through fiscal year end October 25, 1998.


REPORTING RESPONSIBILITY:
-------------------------

Daniel B. Fitzpatrick, Chairman, President and Chief Executive Officer


SALARY:
-------

Your salary rate will begin at $250,000 per annum and maintain that level
through October 26, 1997.  On March 1, 1998, your salary rate will be increased
to $275,000 per annum and remain there through the end of fiscal year 1998.

                                       5
<PAGE>
 
BONUS:

There will be a bonus allotment of 50% of your actual salary earned in each
fiscal year.  The actual payment will be pro rated for your service time in each
fiscal year and paid pursuant to our normal bonus payment guidelines of payment
within 75 days of fiscal year end.  All payments will be made in the form of
cash and processed through our normal payroll system and of course, subject to
all applicable deductions required by law for payroll taxes and the like.

In addition to the above-referenced bonus payments and criteria, the Company
will guarantee a minimum payment of $100,000 for bonus earned in Fiscal Year
1997 and $100,000 for bonus earned in Fiscal Year 1998.

ANNUAL STOCK OPTION GRANTS:

Pursuant to guidelines established by the Board of Directors of the Company, the
Company intends upon awarding you with stock options on a once annual basis.
The formula for awarding stock options will be determined by the Company's Board
of Directors.

INITIAL STOCK OPTION GRANT:

In addition to other stock options which you may qualify for on the date of
hire, you will receive a grant of 50,000 shares which will vest over three years
pursuant to the following schedule:

  One year from your date of hire:                 25%
  Two years from your date of hire:                50%
  Three years from your date of hire:     100%
 
This grant shall be subject to any and all other terms and conditions of the
Company's Stock Option Plan.  The option will be priced at the closing price on
the initial date of your employment.

Furthermore, your annual grant for FY '97, if such grant is made to any
Executive Officers for FY '97, will not be less than 25,000 shares.

ADDITIONAL STOCK OPTION GRANT:

In addition to other stock options which you may qualify for and receive on the
date of your hire, you will also receive an additional grant of shares which
will vest over three years consistent with the above three-year vesting
schedule.  This grant shall occur as follows:

     In the event that Quality Dining, Inc. stock prices closes at $8.00 or less
     on a given day, you will receive an additional grant of options of 7,500
     shares.

     In the event that Quality Dining, Inc. stock prices closes at $7.00 or less
     on a given day, you will receive an additional grant of options of 7,500
     shares.

     In the event that Quality Dining, Inc. stock prices closes at $6.00 or less
     on a given day, you will receive an additional grant of options of 7,500
     shares.

     In the event that Quality Dining, Inc. stock prices closes at $5.00 or less
     on a given day, you will receive an additional grant of options of 7,500
     shares.

AUTO EXPENSE:

                                       6

<PAGE>
 
The Company will extend to you an auto allowance of $500 per month as
reimbursement for your use of an automobile in connection with your duties.

GROUP INSURANCE:

The Company will extend its standard Company-wide group health insurance benefit
which includes hospitalization, major medical, long term disability, life
insurance and other miscellaneous benefits.  This coverage will be extended to
you and your eligible dependents.  The exact benefits, coverages and terms and
conditions will be provided by our Human Resources Department.

LIFE INSURANCE:

The Company will supply you with a life insurance policy in the amount of two
times your annual salary, with distribution of death benefits to your family or
estate.  In order to qualify for this benefit, you must be insurable and meet
other qualifications necessary for a standard life insurance policy to be
issued.

                                       7
<PAGE>
 
VACATION:
---------

The Company will extend to you a vacation time of three weeks to be taken at an
agreed upon time during the fiscal year.


PENSION/PROFIT SHARING AND 401K PROGRAM:
--------------------------------------- 

You are included in the Company's Pension/Profit Sharing and 401K Program.  At
appropriate intervals, you will receive full disclosure of your account within
the Plan, inclusive of the balance and status of your vesting schedule from our
Human Resources Department.  With respect to this Plan, you must also meet all
eligibility requirements as specified by the Plan.   More details on this Plan
are available from the Human Resources Department.


MOVING EXPENSES:
----------------

The Company will supply you with an allowance for relocation and living expenses
currently estimated to include moving expenses utilizing a professional mover to
package household goods and transport them to the South Bend, Indiana area and
other customary in the sale of your current home and secural of your next
residence in the South Bend area.  Your allowance shall not exceed $30,000.  All
moving and related expenses shall be submitted to the Vice President of Human
Resources for approval and processing.


SEVERANCE:
----------

Notwithstanding anything contained to the contrary herein, in the event that you
are terminated from your employment without cause, you will receive payment in
an amount equal to one year of your current salary and annualized bonus awards
as achieved during the prior year.  In the event that your termination is do to
cause, you will not be entitled to any severance benefit and/or any other
benefits which would cease in the ordinary course of your termination.
    
                                       8
<PAGE>
 
CHANGE IN CONTROL:
------------------

If there is a "Change in Control" at the Company, at any time prior to five
years from the date of your initial hire date, the Company will furnish the
following additional benefits:

      1.  Salary Continuation. Your salary and bonus will continue for a period
          of 2.99 years from the date of the Change in Control, provided your
          position (including, without limitation), your status, offices, titles
          and reporting relationships, authority, duties and responsibilities
          following the Change in Control date is not at least commensurate in
          all material respects with the most significant of those held or
          exercised by, and/or assigned to you at any time during the ninety
          (90) day period immediately preceding the Change in Control date. At
          the election of the Company, the Company may elect to pay you the
          entire salaried continuation benefit in one lump sum payment within 30
          days of your termination.

     2.   As currently exists in Quality Dining, Inc.'s Stock Option Plan, a
          Change in Control will allow for the immediate vesting of all options
          granted. To the extent that this policy for any reason would ever be
          modified by proper action taken by the Board of Directors of Quality
          Dining, Inc., the Company will agree to vest all unvested options at
          the time of the Change in Control.


As used herein, "Change in Control" shall have the same meaning ascribed to it
in the Company's Stock Option Plan in effect on the date of a Change in Control.
See enclosed copy of the 1993 Stock Option and Incentive Plan.


No benefits, bonuses, salary of any kind whatsoever shall accrue or deemed to be
earned unless paid.  In order to receive any form of compensation or benefit
other than salary, you must be continuously employed by the Company through the
date of payment.  All forms of compensation, benefits, etc. shall be
administered by the Company consistent with its policies which can be changed at
the Company's sole discretion without notice.

This letter is not intended to be an employment contract.  All employment with
Quality Dining, Inc., and its subsidiaries, is entered into on an at will basis,
i.e. the employment relationship may be terminated at any time at the will of
the employer or the employee.

                                       9
<PAGE>
 
If you have any questions concerning the above compensation program, please feel
free to contact me directly.

                                       Sincerely,

                                       QUALITY DINING, INC.

                                          /s/ Daniel B. Fitzpatrick
                                       --------------------------------

                                       Daniel B. Fitzpatrick
DBF:tmg                                Chairman, President & CEO



ACCEPTED:



 /s/ William W. Moreton
-----------------------
William W. Moreton

                                       10
<PAGE>
 
EXHIBIT 10-O


TO:     Bill Moreton

FROM:   Dan Fitzpatrick

DATE:   September 2, 1997


     As we discussed, we will amend your letter agreement with the Company 
regarding your bonus, such that your bonus will be paid on or before October 31,
1997.

     Please let me know if you have any additional questions regarding this
matter.

                                        Sincerely,



                                        /s/  Daniel B. Fitzpatrick
                                        --------------------------------
                                        Daniel B. Fitzpatrick

DBF:tmg