Bennigan's

Bennigan's
Private
Industry Restaurant
Founded 1976
Headquarters Dallas, Texas, U.S.
Key people
 Paul Mangiamele
Owner Legendary Restaurant Brands, LLC
Slogan American Fare. Irish Hospitality.
Website bennigans.com

Bennigan's is an Irish pub-themed casual dining restaurant chain founded in 1976 in Atlanta by legendary restaurateur Norman E. Brinker as one of America's original casual dining concepts. Best known for its World Famous Monte Cristo and "where every day is St. Paddy's Day," the company is now 100 percent owned by "Legendary Restaurant Brands, LLC" and is headquartered in Dallas, Texas.[1]

History

Bennigan's was established in 1976 in Atlanta, Georgia, as part of the Pillsbury Corporation. The first significant Bennigan's location was opened in Tysons Corner, Virginia, the following year. The concept was the brainchild of company vice president and Steak and Ale founder Norman E. Brinker. By the early 1980s Bennigan's had become one of the best known of the new style mid-range casual dining franchised "fern bar" eating and drinking establishments in the United States. In 1983, Brinker led an exodus of senior management from the S&A and Bennigan's division, purchasing a small regional restaurant concept that focused on gourmet hamburgers, Chili's.[2] Bennigan's continued to grow across the United States, as well as opening locations in fourteen countries.

When Pillsbury was acquired by Grand Metropolitan in 1989 (Grand Met later merged with Guinness in 1997 to become Diageo), the company was spun off. As a major liquor distributor selling such brands as Bombay gin, J&B and other spirits, Grand Metropolitan was bound by "Tied house" laws that prohibited liquor distributors from owning liquor retailers. S&A management, underwritten by Metromedia, led the leveraged buyout of S&A in 1991.[3]

A Bennigan's sign featuring the old logo, before the November 2010 revamp of the Bennigan's brand. In South Korea, however, Bennigan's still operates to this day with this logo.[4]

Failure of Bennigan's executives to update and evolve the restaurant concept over twenty years led to significant sales and customer visit declines. Bennigan's consistently lagged behind its contemporaries, Chili's and T.G.I. Friday's. John Owens, a Morningstar analyst, described Bennigan's as one of the "weakest of the major players." Rapid expansion among many chains led to a lack of distinction among customers and a drive to cut prices.[5] Bob Goldin, an executive vice president of the restaurant industry consulting group Technomic, said that many chains like Bennigan's featured "the same kind of menu, décor, appeal." This translated into a lack of brand loyalty.[6]

In May 2006 Bennigans closed most of its New York and New England locations.[7]

Corporate closure

In July 2008, all of Bennigan's 150 corporate locations across the US were closed due to parent company Metromedia Restaurant Group of Plano, Texas filing for Chapter 7 bankruptcy protection; initially the firm's 138 franchisee-owned remained open, but many later closed in the months and years after the bankruptcy filing. Several international locations, however, remained open. In South Korea, for instance, over 30 locations still operated as usual.[8]

The brand was restructured in 2010 as a result of ownership changes. As of January 2015, there are 23 Bennigan's locations in 11 U.S. states, and 39 additional locations in eight other countries.[9] The operator of Bennigan's in South Korea has announced that all locations in the country will be closed by January 31, 2016.[10]

New ownership

In October 2008, Atalaya Capital Management announced that it would buy the assets of both the Bennigan's and Steak and Ale brands. The assets include the Bennigan's Franchising Co., which owned the rights to franchise the Bennigan's brand and was instrumental in keeping franchise-owned restaurants operating during the bankruptcy period. In a statement by the firm, it was stated that the company planned to reposition the brand by re-establishing its place in the high-margin bar segment and by focusing on sandwiches and appetizers. It also said the company planned to reopen 50 or 60 formerly company-owned Bennigan's locations by finding new or existing franchisees to operate the restaurants.[11]

In May 2011 new management of the firm stated that they wanted to return the brand to its roots but also give Bennigan’s new life in the 21st century.[12] In an interview of CEO Paul Mangiamele, he stated that the company's strategy to turn the brand around was multi-pronged. The company planned to introduce a new logo, store prototype, financial and franchise models, an updated menu, improved marketing, adding a catering operation and a new attitude.[11]

On February 11, 2015, CEO Paul Mangiamele and his wife, Gwen, closed on a Management Buy Out (MBO) of the company from its parent private equity firm, for an undisclosed price. The new company, Legendary Restaurant Brands, LLC, is now 100 percent owner of the Bennigan's restaurant chain, its fast-casual concept Bennigan's On the Fly, and the Steak and Ale brand.[13]

Currently, Bennigan's operates 23 domestic and 39 international locations in eight other countries.

References

  1. ↑ Bennigan's Web Page. "Contact". Bennigan's. Retrieved 11 September 2012.
  2. ↑ Schoifet, Mark (6 May 1985). "Bennigan's launches extensive new menu". CBS Interactive. Retrieved 2009-02-10.
  3. ↑ Bernstein, Charles (14 August 1989). "Conglomerate menace stalks chains". Cengage Learning. Retrieved 2009-02-10.
  4. ↑ "Bennigan's Korea homepage".
  5. ↑ "www.beepcentral.com/story.aspx?story=24955". Archived from the original on October 1, 2011.
  6. ↑ Grynbaum, Michael M. (30 July 2008). "Restaurant Chains Close as Diners Reduce Spending". The New York Times. Retrieved 2009-02-10.
  7. ↑ "www.courant.com/business/hc-ap-bennigans0729,0,2131633.story". Archived from the original on March 13, 2009.
  8. ↑ "Struggling US Chains Find Consolation in Asia". koreatimes.com. 2008-08-01. Retrieved 2009-05-04.
  9. ↑ Bennigan's Web Page. "Locations". Bennigan's. Retrieved 24 January 2015.
  10. ↑ http://m.sisaweek.com/news/articleView.html?idxno=61991
  11. 1 2 "Investment firm buys Bennigan's name and franchise rights". 2008-10-23.
  12. ↑ Daley, Jason. "How Ground Round, Sizzler and Bennigan's Bounced Back from Bankruptcy". Entrepreneur. Retrieved 21 January 2013.
  13. ↑ Robison-Jacobs, Karen. "Bennigan's CEO liked the chain so much, he bought the company". Retrieved 21 March 2015.

External links

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