Bennigan's and Steak and Ale go Chapter 7

[cartman]

Sounds like it is the end of the line for these two restaurants. Their parent company filed for Chapter 7, which means liquidation, not reorganization.

WBBM 780 - Chicago's #1 source for local news, traffic and weather - Staff: Bennigan's Restaurants Closing Nationwide

Staff: Bennigan's Restaurants Closing Nationwide

The corporation that owes and operates Bennigan's and Steak and Ale restaurants across the country filed for bankruptcy Tuesday forcing over a dozen Bennigan's in the Chicagoland area to close.

At least three general managers of local Bennigan's Restaurants say many of the restaurants in the chain are closing down.

The general manager of the Bennigan's on North Michigan Avenue, the general manager at the location on Touhy Avenue, and general manager Alfonso Prince of the Calumet City Bennigan's all tell Newsradio 780 that they received a call from their supervisors after midnight this morning.

All three were told their restaurants are shutting down effective immediately and Prince tells WBBM the shutdown is nationwide.

According to a statement from S &A Restaurant Copr. that owes and operates Bennigan's and Steak and Ale restaurants th company filed for bankruptcy Tuesday.

S & A Restaurant Corp. and certain affiliates have filed for bankruptcy under Chapter 7 of the bankruptcy code. The companies that filed bankruptcy cases are popularly known as Steak & Ale, Bennigan's and Tavern restaurants. However, not all stores using these trade names have filed bankruptcy. For example, stores operated by franchisees are not named as debtors in these filings. The filing does not include Ponderosa and Bonanza which operate under Metromedia Steakhouses Company, L.P.

A company spokesman confirms the firm has been closing under-performing Bennigan's restaurants, but would not elaborate.

WBBM Business Editor's Len Walter says the owner of the Texas-based Bennigan's chain, Metromedia Restaurant Group, has been in talks with GE Capital to stave off bankruptcy, though details of these talks is unknown.

The general managers say the news comes as a total shock to them and say there was no warning. Managers have been showing up at Bennigan's restaurants and putting up signs in the doors.

Bennigan's was founded in 1976, and is owned and operated by Metromedia Restaurant Group. The restaurant has locations in 32 states.

The Bennigan's Web site did not indicate the chain was closing, and still advertised a Jameson barbecue menu and other special promotions.

[Passacaglia]

Cool. Maybe a better place will go up in place of the one downtown.

[Bad-example]

Poor Butters.

[JonInMiddleGA]

Nostalgically I hate to hear this, as Bennigan's was a favorite of mine back in my late teens & early 20's, specifically the smothered steak.

From the story though, one thing did jump out at me, the claim about this being "a total shock" to several of the local GM's. If it was, that's pretty much their own fault since the signs pointing toward this were out there for several weeks at least.

Here's an example, a story from Florida where 59 locations were put on the real estate market back in late June & closures in several markets were mentioned as well.
Bennigan's parent co. puts Fla. restaurants on the market - Dallas Business Journal:

[JeeberD]

Damn...gotta find a new place to drink with the co-workers, I guess.

[Karlifornia]

As a northern Californian, I have never been to either one of these places.

[MJ4H]

bennigans was awesome

[sachmo71]

Originally Posted by MJ4H

bennigans was awesome

nope

[MJ4H]

Originally Posted by sachmo71

nope

die in a

a) helicopter crash
b) hotel fire
c) grease fire
d) sailing mishap

[Barkeep49]

I ended up eating in one last night. I think it'd be pretty cool if it was closed now so that I ate at a restaurant on its last day.

[Pumpy Tudors]

I went to a Steak and Ale one time, and it was OK, I guess. I never went to a Bennigan's. Honestly, I didn't know that either of these places still existed at all.

[gkb]

I haven't been to Bennigan's in years, but back in the day I'd go there quite a bit. I never knew Steak and Ale was a chain, let alone owned by the people that own Bennigan's. I've been there once.

Originally Posted by MJ4H

die in a

a) helicopter crash
b) hotel fire
c) grease fire
d) sailing mishap

I thought this was funny...I'd pick d).

[stevew]

I worked for bennigans for 3 months or so back in 2000. Lemme just say that I'm happy this happened cause they treated me like shit and were extremely deceitful in their hiring practices. Had I known what the reality of the job was I would have never have wasted my time. In short, fuck them and the horse they road in on.

[Lathum]

It came as a shock to the GM's because thats how restaurants operate when they close units. They dont give any empolyees any advance warning, including managment. You show up for work one day and the next day the doors are lock and you have no job.

[Lathum]

Originally Posted by stevew

I worked for bennigans for 3 months or so back in 2000. Lemme just say that I'm happy this happened cause they treated me like shit and were extremely deceitful in their hiring practices. Had I known what the reality of the job was I would have never have wasted my time. In short, fuck them and the horse they road in on.

care to elaborate?

[sabotai]

Originally Posted by Bad-example

Poor Butters.

Heh, that's the first thing I thought of too.

[stevew]

Originally Posted by Lathum

care to elaborate?

I had just moved to a new town and blew off several other interviews cause they offered a decent wage and "30 to 40 hours per week" to work as a cook with potential to move up the ranks. Instead after I started it was more like 15 hours per week and I was a cook who just happened to have to wash all of the dishes. I stick it out for awhile hoping it would get better but it never did. And then I had to go out and fill out a million apps again. At that point I got hired by bennigans i wasn't 18 looking for my first job. I had several years of back of the house supervisorial experince and had handled scheduling and inventory and ordering at my previous job. I was obviously naïve in the situation and got blind sided.

[Lathum]

that is shitty

[TCY Junkie]

I got a gnat in my water yesterday at Steak and Ale and poor service.

[Buccaneer]

Originally Posted by sachmo71

nope

You have to excuse MJ4h. He thinks Velveeta is gourmet cheese and a big night out includes Dillybars at DQ.

[Warhammer]

Steak and Ale sucked, but I enjoyed all the Bennigan's I went to.

[TCY Junkie]

I go to Steak and Ale for one reason, the mashed potatoes.

[rjolley]

Hey, don't knock Dillybars.

[JonInMiddleGA]

Originally Posted by Lathum

It came as a shock to the GM's because thats how restaurants operate when they close units. They dont give any empolyees any advance warning, including managment. You show up for work one day and the next day the doors are lock and you have no job.

You know that sitting here at FOFC and I know that sitting here at FOFC, even though neither of us works for the company. The warning signs of the situation were not a big secret. So why did it surprise the GM's?

Read that article I linked & tell me you would have been surprised by this happening a month later.

[Lathum]

I was upper level managment for CRW and I know how these things work.

I am sure if a GM did his due dillegence he/she would have known trouble was coming, but it isn't ever something you can expect.

[JonInMiddleGA]

Originally Posted by Lathum

I am sure if a GM did his due dillegence he/she would have known trouble was coming

That's the point I was getting at.

but it isn't ever something you can expect.

You clearly underestimate my capability for pessimism

[judicial clerk]

They needed more pieces of flare

[Lathum]

Originally Posted by judicial clerk

They needed more pieces of flare

wrong company.

Fridays is going strong

[Barkeep49]

Originally Posted by Lathum

wrong company.

Fridays is going strong

That's his point. We've seen here

Flair = going strong
No flair = bankruptcy

[Lathum]

Fridays did away with flair about 8 years ago

[Schmidty]

I always liked to go to Steak and Ales when I lived in FL.

[oliegirl]

Originally Posted by JeeberD

Damn...gotta find a new place to drink with the co-workers, I guess.

Why don't you try your local Olive Garden? I hear they have some decent employees, and they are known for their awesome bartenders

[Lathum]

Originally Posted by JeeberD

Damn...gotta find a new place to drink with the co-workers, I guess.

are you still at the same location you were always at?

[fantom1979]

As someone who has managed to work for some retailers that are either in trouble or already gone (Circuit City, CompUSA, Computer City, Home Depot), i can tell you that I have never needed someone from upper management to tell me that the company I work for is in trouble. Between the falling stock prices, closing stores, reduced payroll, and other cost cutting measures, its not hard to see something like this coming.

[AZSpeechCoach]

All of the Bennigans here in Phoenix closed years ago. The interesting thing is that the buildings have all of the original signage still on them, have never been sold, and don't appear to be for sale. They just remain vacant, like ghosts of a fried-cheese wheel burger.

[fantom1979]

Its the same way here with all of the old Chi-Chi's restaurants.

[Lathum]

Originally Posted by AZSpeechCoach

All of the Bennigans here in Phoenix closed years ago. The interesting thing is that the buildings have all of the original signage still on them, have never been sold, and don't appear to be for sale. They just remain vacant, like ghosts of a fried-cheese wheel burger.

thats because almost all restaurant chains are renters.

Restaurants aren't in the real estate buisness.

[Buccaneer]

Originally Posted by Lathum

thats because almost all restaurant chains are renters.

Restaurants aren't in the real estate buisness.

Except for McDonald's. That's how they made their billions. (from McDonald's: Behind the Arches by John Love.

[Lathum]

I meant more towards the casual dining restaurants. I should have been more clear

[JeeberD]

Originally Posted by oliegirl

Why don't you try your local Olive Garden? I hear they have some decent employees, and they are known for their awesome bartenders

Heh. Actually, I no longer bartend...so the quality of our bar has gone way downhill. And I'm not joking. And management tends to frown on off-duty employees drinking at the bar. They're worried about their buddies hooking them up or something...

Originally Posted by Lathum

are you still at the same location you were always at?

For now, yes. If/when they make me a manager, they'll ship me off elsewhere in DFW.

[Lathum]

Originally Posted by JeeberD

For now, yes. If/when they make me a manager, they'll ship me off elsewhere in DFW.

then there is no shortage of places to go.

Buffalo Wild Wings is good and has some good specials usualy

[AZSpeechCoach]

Originally Posted by Lathum

thats because almost all restaurant chains are renters.

Restaurants aren't in the real estate buisness.

But after a few years, wouldn't you expect another restaurant to rent the space, or the landlord to put out a Space for Lease sign?

[Lathum]

Originally Posted by AZSpeechCoach

But after a few years, wouldn't you expect another restaurant to rent the space, or the landlord to put out a Space for Lease sign?

sure, but it all depends. Retail space is hard to rent, and some of tgose cotracts have an out clause if the space is rented.

In some cases they make more money with an empty building