Corporate Obituaries: Bennigan's Mike Schuster Jan 22, 2009 1:20 pm |
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![]() BENNIGAN'S
Casual Dining Restaurant |
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Nearly 6 months have passed since Bennigan's Grill & Tavern declared bankruptcy, and the debate still rages over what should be done with a restaurant once so full of life. Those who knew Bennigan's best admit it’s a shell of its former self -- with only half of its original locations still open and active -- but that won't stop some from pushing for life support. Founded in 1976 by Norman E. Brinker, it quickly won acclaim for its upscale casual dining. Unfortunately, the high life ended when Brinker led a mass exodus of senior management in 1983, and proceeded to open future competitor Chili's (EAT). Brinker's absence would eventually take a stubborn toll; Bennigan’s business declined and it refused to evolve. As it struggled to find a strategy in an increasingly crowded casual dining market, it made the mistake of turning to cost-cutting measures. Many believe switching from fresh-made menu items to high-caloric, frozen fare expedited its demise. Health-conscious consumers ignored its new signature dishes -- now indistinguishable from bar food -- like onion rings, buffalo wings and a dessert called “Death by Chocolate." |
Bennigan's filed for Chapter 7 bankruptcy protection on July 29, 2008. For former customers, it’s difficult to pass by the boarded up storefronts where they used to eat, drink and socialize. It’s equally hard to visit the existing locations - now affiliated with the original Bennigan's in name only. Some would like to see the restaurant chain’s life cycle brought to a painless, dignified end. But not Joel Holsinger. The managing director of private equity firm Atalaya Capital Management seeks control of Bennigan’s assets and plans to reopen 50 or 60 former locations. He thinks the ailing restaurant can still enjoy a rich, fulfilling life And while there isn’t much of a precedent -- neither Chi-Chi’s nor Showbiz Pizza Place survived bankruptcy -- he’s resolved to try. Until then, Holsinger recommends stopping by one of the remaining locations and having a pint and a song. |
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