Bennigan's Restaurant Chain Has Shut Down

[HuskyCaucasian]

http://cbs2chicago.com/business/bennigans....n.2.782428.html

 

CBS 2 News has learned that the Bennigan's Restaurant chain has shut its doors.

 

The manager of a Bennigan's in Calumet City told CBS 2 Tuesday morning that he was informed of the shutdown from his regional manager at 12:10 a.m. today in a phone call.

 

Calls to other Bennigan's locations in Chicago confirm that the doors were locked Tuesday morning, and that managers have been showing up to put signs in the doors.

 

One employee who answered the phone at the Bennigan's at 150 S. Michigan Ave. downtown tells CBS 2 News that she learned after midnight that there is a shutdown, and said she has heard is national in scope.

 

A spokeswoman for Metromedia Restaurant Group, which owns Bennigan's, said she had not heard of a nationwide shutdown. She said the chain has recently been shutting down underperforming locations.

 

But restaurant managers throughout the Chicago area, and one in Florida, said they were all told their locations would shut down effective Tuesday morning.

 

Bennigan's was founded in 1976. 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.

[shipps]

Their monte cristo could quite possibly be the most unhealthy thing a person could ingest.

[Texsox]

Their monte cristo could quite possibly be the most unhealthy thing a person could ingest.

 

Absolutely, and smothered in raspberry jam it is about the greatest thing on their menu

[knightni]

I liked them.

 

Oh well.

 

Houlihan's is better anyway.

[HuskyCaucasian]

Absolutely, and smothered in raspberry jam it is about the greatest thing on their menu

:headbang .

Amen!

[southsider2k5]

I liked them.

 

Oh well.

 

Houlihan's is better anyway.

 

I agree 100%.

[Dick Allen]

I have never been to a Bennigan's. I was walking by the one on Michigan Ave. the other day wondering if I would ever eat at one. The wondering is ova.

[southsideirish71]

Slainte

[Rex Kickass]

Their website is gone. Apparently all company owned Bennigan's are done.

[Heartattack19]

That really stinks, i liked their food. if you wanted to eat on a saturday at 7 PM and not wait an hour and a half, Bennigan's was the place to go! Granted, that may be why they shut down.....

[Rex Kickass]

It's official. Chapter 7.

 

http://money.cnn.com/2008/07/29/news/compa...dex.htm?cnn=yes

[SleepyWhiteSox]

Now who will bust people's blues??

[southsider2k5]

Interesting to note that they are putting some blame on the minimum wage increase...

 

http://www.wbbm780.com/Bennigan-s-Goes-Bust/2685636

 

Bennigan's Restaurants Closing Nationwide

 

CHICAGO (WBBM) - The corporation that owns Bennigan's restaurants across the country filed for bankruptcy Tuesday forcing 15 Chicagoland restaurants to close and many others across the country.

 

A restaurant industry expert says that the shut down at Bennigan's is just one more sign of an ailing economy.

 

The University of Central Florida's Chris Muller told WBBM that the restaurant industry is one of the first industries to suffer as Americans tighten their belt and the economy spirals downward.

 

"The restaurant industry is like the canary in the coal mine," he said. "It's just been a perfect storm for the chain restaurant business."

 

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 Corporate that owes and operates Bennigan's and Steak and Ale restaurants the 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.

 

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.

 

In the Chicagoland area there are a total of 16 Bennigan's restaurants, so far WBBM has learned that 15 of those have been closed. An employee at Bennigan's in Elgin, at 419 Airport Rd., tells WBBM that they will remain open.

 

Muller said there is intense pressure to hold the line on prices, despite a laundry list of cost increases. Yet, he said, a number of factors are keeping people at home, or looking for cheaper alternatives to Bennigan's and its direct competitors, such as Houlihan's and T.G.I. Friday's.

 

He said the cost of the food used to prepare meals is up at home and in the restaurant, and said those forced to choose between a meal out and affording meals at home are staying home. He said increases the cost of fuel keep others away while increasing the costs of the commodities used in restaurants. Even power bills are up.

 

Muller said the newly-imposed increase in the minimum wage may have been the last straw for Bennigan's, but said its competitors will continue to suffer until an economic recovery is well underway.

 

"People will have to come to an idea that it's okay, that they're not worried about losing their jobs, or about paying for their Christmas presents and vacations, and then restaurants will begin to come back," he said.

 

Muller said he expects "more surprises, not fewer" in the restaurant industry, particularly between now and Labor Day. He noted that several other popular national restaurant chains, such as Baker's Square, are already in Chapter 11 bankruptcy reorganization.

 

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 as of 11 a.m.

 

On the Net: www.bennigans.com

[Texsox]

So the economy lost hundreds of minimum wage jobs?

 

I have no doubt it sucked, but how many employees in that restaurant worked for minimum wage? Severs? I doubt it. Manager, Assistant, Host, cooks, etc. all should be making more than minimum wage. So lprobably just the bus boys and kitchen help? Let's say they have 20 of them through out the day. If a couple hundred buck a day increase was the difference between staying in business and not, they were in very poor shape to begin with and probably were not going to make it.

[EvilMonkey]

I just can't see how banks continue to give business loans to restaraunts in general. I was driving yesterday and it seemed like every strip mall had at least 2 food places in it. The article is right, eating out is one of the first things that stops when your income drops.

[Texsox]

I just can't see how banks continue to give business loans to restaraunts in general. I was driving yesterday and it seemed like every strip mall had at least 2 food places in it. The article is right, eating out is one of the first things that stops when your income drops.

Business entertainment, expense account lunches, travelers, workers, etc. They may drop down a notch or two in where they go, but many will weather the storm. But I agree, why anyone would decide to go into the restaurant business, or loan money to someone to do that is crazy.

 

BTW would you like to be partners in my new Texas BBQ joint I want to open in Woodfield?

[southsider2k5]

Business entertainment, expense account lunches, travelers, workers, etc. They may drop down a notch or two in where they go, but many will weather the storm. But I agree, why anyone would decide to go into the restaurant business, or loan money to someone to do that is crazy.

 

BTW would you like to be partners in my new Texas BBQ joint I want to open in Woodfield?

 

Margins are near zero in that field at most levels. You have to get into the high end before you really have a profit margin.

[Texsox]

Margins are near zero in that field at most levels. You have to get into the high end before you really have a profit margin.

 

I understand that, but generally the volumes are high. Looking at their square footage and overhead, if all they were trying to make is a couple hundred dollars a day, they weren't going to make it anyways. As a contributing factor, I'd imagine that the minimum wage increase was nearly zero. The loss in revenues, increased fuel costs which precipitated rising food costs, were much bigger factors. I order from Ben E Keith and Sisco, two large restaurant wholesalers, and all the add ons for fuel charges and reductions in the discounts I was getting, added up to a decent hit.

 

I'm not saying the increase came at the wrong time for them. Plus, those that claim more money in the hands of consumers is good for the economy could argue this will help everyone.