Friday, August 10, 2007
Aug. 9, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
After a recent $68 million cash infusion, the casual-dining chain Houlihan's is embarking on a national expansion, with the Inland region among places slated to get some of an expected 22 new restaurants in California and Arizona by 2015.
Kansas-based Houlihan's recently signed an agreement with franchise market developer SunPacific Partners LP for its western expansion, with an option to open three additional California locations. The company has more than 70 franchised and corporate-owned restaurants in the works nationwide.
The Southern California Houlihan's will open throughout Riverside, San Bernardino and Orange counties, with new Central California sites stretching from Bakersfield to the Sacramento area. Company spokeswoman Jenifer Gulvik said Wednesday the exact locations of the new restaurants were not yet available.
The privately held Houlihan's has 92 restaurants nationwide, most of them franchised, and officials expect to open 30 new locations in the next two years. There are two restaurants in Northern California.
The company also recently announced a deal with Northeast Casual Food LLC to open 12 new restaurants in Florida and another 12 in northeastern states. That's in addition to 30 new corporate-owned sites in various stages of development across the country.
The expansion plans follow a May infusion of more than $68million from Minnesota-based private-equity firm Goldner Hawn Johnson & Morrison as well as a restaurant finance subsidiary of Wells Fargo & Co. (NYSE:GWF) (NYSE:JWF) (NYSE:WSF) (NYSE:WPF) (NYSE:WFC)
The cash will help Houlihan's build newly designed '21st century' restaurants . A company statement said the revised-style Houlihan's feature s new architecture, interior design, and uniforms and menu items and include s patio-style dining and a revamped centerpiece bar.
Ron Paul, president of Chicago-based restaurant consulting firm Technomic, said the company in recent years has seen its customer base eroding, similar to what has happened with other casual-dining chains such as Applebee's, Chili's and TGI Friday's.
Style and design have also been problems for Houlihan's and similar-themed casual-dining stalwarts.
'People have gotten tired of the same old format with the wall memorabilia and the fern bar,' Paul said. 'They've seen that, been there, done that.'
While he hasn't seen the new Houlihan's design, Paul said it appears the company is moving to ward join ing an upscale casual-dining trend that aims to appeal to dinner-hour crowds in less of a hurry and willing to spend more on quality meals in a relaxed atmosphere.
Even as its expansion plans in the past year have gone much slower than the company projected, Paul said the new Houlihan's format appears to be gaining traction with potential franchisees. 'They wouldn't be investing money in it if they didn't support the concept,' he said.
HOULIHAN'S UPDATING DESIGN
Houlihan's Restaurants Inc.
Established: 1972
Headquarters: Leawood, Kansas
Revenues: Not disclosed (privately held)
Locations: 92 in 20 states; more than 70 planned, with new Inland sites to open by 2015
Information: www.houlihans.com
Newstex ID: KRTB-0174-18827079
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