Bennigan's
Encyclopedia
Bennigan's is an Irish pub-themed casual dining
restaurant
chain with locations throughout the United States
, and in 14 countries and 15 territories outside the continental U.S. The operating company, Bennigan's Franchising Company, LLC, is headquartered in Richardson, Texas
.
In July 2008, all of Bennigan's 150 corporate locations across the US were closed due to parent company Metromedia Restaurant Group of Plano, TX filing for Chapter 7 bankruptcy protection; the firm's 138 franchisee-owned outlets will remain open. A revamp of the Bennigan's brand occurred in November 2010, with additional locations opening under franchise agreements.
, Broccoli Cheese Soup, Broccoli Bites, and Death by Chocolate
. Restaurants also feature a full bar, with many varieties of beer
available. While the premise of the restaurant was an Irish Pub, the only Irish offerings were chicken, steak, and hamburgers served with a Guinness
glaze and sauce, as well as menus sporting green lettering.
, as part of the Pillsbury Corporation. The concept was the brain-child 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
. Bennigan's continued to grow rapidly 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.
The deterioration of food quality in addition to the 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. 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.
In 2006 Bennigans closed most of its New England locations.
news radio (Chicago
) reported that the Bennigan's chain had closed due to bankruptcy. The website cites calls to several area Bennigan's locations in which managers and employees told reporters that the closings were company-wide, having been informed by their own supervisors early that morning. There were reports of shutdowns in Ohio, Illinois, New Jersey, Texas, Florida, Colorado, Kansas, Virginia and New Mexico. Phone calls went out for many employees that morning notifying them of their job loss, but others reported showing up to work to find a "Closed" sign hanging on the door. Later that day, sister station WBBM-TV
reported on its web site that only company-owned stores were closing, and that franchised locations remain open. Franchisees in states including Michigan announced their plans to keep the stores open in their territories.
Other reports indicated that the shutdown was only within the United States, allowing international locations to remain open. In South Korea, for instance, over 30 locations were still operating as usual. The Wall Street Journal reported at the time that both Bennigan's and Steak and Ale
had filed for Chapter 7
bankruptcy and shut down. According to the news report, they were not expected to reopen. Many formerly corporate-owned stores have been placed up for auction.
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. Joel Holsinger, managing director of the firm, said 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. Holsinger 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.
Casual dining
This is a list of casual dining restaurant chains around the world, arranged in alphabetical order. A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere...
restaurant
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
chain with locations throughout the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, and in 14 countries and 15 territories outside the continental U.S. The operating company, Bennigan's Franchising Company, LLC, is headquartered in Richardson, Texas
Richardson, Texas
Richardson is a city in Dallas and Collin Counties in the U.S. state of Texas. As of the 2010 census, the city had a total population of 99,223. In 2011 the population was estimated to be 107,684. Richardson is an affluent inner suburb of Dallas and home of the Telecom Corridor with a high...
.
In July 2008, all of Bennigan's 150 corporate locations across the US were closed due to parent company Metromedia Restaurant Group of Plano, TX filing for Chapter 7 bankruptcy protection; the firm's 138 franchisee-owned outlets will remain open. A revamp of the Bennigan's brand occurred in November 2010, with additional locations opening under franchise agreements.
Products
Bennigan's features a menu with typical American fare and Irish twists, including appetizers, sandwiches, and steaks. Its most popular menu items over many years include the Monte Cristo sandwichMonte Cristo sandwich
A Monte Cristo is a fried ham and cheese sandwich. The cheese used is Emmental or Gruyère.-Description:The sandwich can differ regionally. Regional variations may include sliced turkey along with the ham and cheese. Traditionally, the sandwich is dipped in its entirety in egg batter and fried...
, Broccoli Cheese Soup, Broccoli Bites, and Death by Chocolate
Death by Chocolate
Death by Chocolate is a marketing term for various desserts that feature chocolate as the primary ingredient. The trademark in the United States was owned by S&A Restaurant Group, the parent company of Bennigan's restaurants, but with the subsequent bankruptcy of the company the current legal...
. Restaurants also feature a full bar, with many varieties of beer
Beer
Beer is the world's most widely consumed andprobably oldest alcoholic beverage; it is the third most popular drink overall, after water and tea. It is produced by the brewing and fermentation of sugars, mainly derived from malted cereal grains, most commonly malted barley and malted wheat...
available. While the premise of the restaurant was an Irish Pub, the only Irish offerings were chicken, steak, and hamburgers served with a Guinness
Guinness
Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James's Gate, Dublin. Guinness is directly descended from the porter style that originated in London in the early 18th century and is one of the most successful beer brands worldwide, brewed in almost...
glaze and sauce, as well as menus sporting green lettering.
History
Bennigan's was established in 1976 in Atlanta, GeorgiaAtlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, as part of the Pillsbury Corporation. The concept was the brain-child of company vice president and Steak and Ale
Steak and Ale
Steak and Ale was an American chain of casual dining restaurants, operated by S&A Restaurant Group. Steak and Ale was founded as an independent restaurant chain in Dallas, Texas, on February 26, 1966, by Norman E. Brinker...
founder Norman E. Brinker
Norman E. Brinker
Norman Eugene Brinker was a prominent restaurateur who was responsible for the creation of new business concepts within the restaurant field, such as the salad bar.-Biography:He was born on June 3, 1931...
. By the early 1980s Bennigan's had become one of the best known of the new style mid-range casual dining
Casual dining
This is a list of casual dining restaurant chains around the world, arranged in alphabetical order. A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere...
franchised "fern bar
Fern bar
Fern bar is an American slang term for an upscale or preppy bar or tavern catering to singles usually decorated with ferns or other "fussy" plants, as well as such decor as fake Tiffany lamps...
" 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
Chili's
Chili's Grill & Bar is a restaurant chain founded by Larry Lavine. The chain has more than 1400 casual dining restaurants, mostly located in the United States and Canada...
. Bennigan's continued to grow rapidly 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
Guinness
Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James's Gate, Dublin. Guinness is directly descended from the porter style that originated in London in the early 18th century and is one of the most successful beer brands worldwide, brewed in almost...
in 1997 to become Diageo
Diageo
Diageo plc is a global alcoholic beverages company headquartered in London, United Kingdom. It is the world's largest producer of spirits and a major producer of beer and wine....
), 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
Tied house
In the UK a tied house is a public house that is required to buy at least some of its beer from a particular brewery. This is in contrast to a free house, which is able to choose the beers it stocks freely.- Definition of "tied" :...
" laws that prohibited liquor distributors from owning liquor retailers. S&A management, underwritten by Metromedia
Metromedia
Metromedia was a media company that owned radio and television stations in the United States from 1956 to 1986 and owned Orion Pictures from 1986-1997.- Overview :...
, led the leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
of S&A in 1991.
T.G.I. Friday's
T.G.I. Friday's is an American restaurant chain focusing on casual dining. The company is a unit of the Carlson Companies. Its name is taken from the expression TGIF...
. 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. 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.
In 2006 Bennigans closed most of its New England locations.
Corporate closure
On July 29, 2008, the web site of WBBMWBBM (AM)
WBBM is an all-news CBS radio station in Chicago, Illinois broadcasting on the AM dial at 780 kHz. It is owned by CBS along with WBBM-TV....
news radio (Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
) reported that the Bennigan's chain had closed due to bankruptcy. The website cites calls to several area Bennigan's locations in which managers and employees told reporters that the closings were company-wide, having been informed by their own supervisors early that morning. There were reports of shutdowns in Ohio, Illinois, New Jersey, Texas, Florida, Colorado, Kansas, Virginia and New Mexico. Phone calls went out for many employees that morning notifying them of their job loss, but others reported showing up to work to find a "Closed" sign hanging on the door. Later that day, sister station WBBM-TV
WBBM-TV
WBBM-TV, virtual channel 2 , is the CBS owned-and-operated television station in Chicago, Illinois. WBBM-TV's main studios and offices are located in The Loop section of Chicago, as part of the development at Block 37, and its transmitter is atop the Willis Tower.-History:WBBM-TV traces its history...
reported on its web site that only company-owned stores were closing, and that franchised locations remain open. Franchisees in states including Michigan announced their plans to keep the stores open in their territories.
Other reports indicated that the shutdown was only within the United States, allowing international locations to remain open. In South Korea, for instance, over 30 locations were still operating as usual. The Wall Street Journal reported at the time that both Bennigan's and Steak and Ale
Steak and Ale
Steak and Ale was an American chain of casual dining restaurants, operated by S&A Restaurant Group. Steak and Ale was founded as an independent restaurant chain in Dallas, Texas, on February 26, 1966, by Norman E. Brinker...
had filed for Chapter 7
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...
bankruptcy and shut down. According to the news report, they were not expected to reopen. Many formerly corporate-owned stores have been placed up for auction.
New ownership
In October 2008, Atalaya Capital Management announced that it would buy the assets of both the Bennigan's and Steak and AleSteak and Ale
Steak and Ale was an American chain of casual dining restaurants, operated by S&A Restaurant Group. Steak and Ale was founded as an independent restaurant chain in Dallas, Texas, on February 26, 1966, by Norman E. Brinker...
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. Joel Holsinger, managing director of the firm, said 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. Holsinger 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.
External links
- Official website
- Announcement of Atalaya Capital's acquisition of the Bennigan's brand
- http://www.thedailybeast.com/newsweek/2008/07/30/changing-tastes.html