|
Feature Article, May 2005
Houlihan's Is In High Gear
With a goal of penetrating its current markets, Houlihan's is in the process of expanding its presence with 300 to 400 new locations.
 |
The Houlihan's prototype is about 6,200 square feet, but can be as small as 5,600 square feet and as large as 7,500 square feet, depending on the location and the projected volume.
|
|
Houlihan's Restaurants is out to make an even bigger name for itself in the company's established markets. Founded in 1972, Houlihan's operates 78 restaurants throughout the country, including 32 corporate and 46 franchised locations. An additional 20-plus franchised locations are slated to open in the next 2 years, and the company plans to expand by 300 to 400 restaurants over the next 10 years. “People know the name and they have affection for the name,” says president and CEO Bob Hartnett. “We've been around for 32 years, but we don't have a lot of penetration really in any market.”
Houlihan's is owned by Houlihan's Restaurants, Inc. of Leawood, Kansas, a pioneer in the full-service, casual dining industry that developed and owns several restaurant concepts comprising of 90 locations from coast to coast, including J. Gilbert's Wood-Fired Steaks, Darryl's Restaurant & Bar, and Bristol Seafood Grill and Bar, which the company also plans to expand along with Houlihan's.
Houlihan's has been under new management, headed by Hartnett, for the last 2 years. Formerly president of Bennigan's, Hartnett most recently was CEO of Einstein Noah Bagel Corp. where he led a successful turnaround. Previously, he was a successful multiple-unit franchisee for a national quick-service restaurant brand in the Florida market, bringing knowledge from his franchising experience to the franchisee/franchisor relationship at Houlihan's. As part of the new management approach, the company is embarking on a contemporary new design for all future locations in an effort to “reinvent casual dining for the 21st century.” Hartnett hired Bobby Altman, a top independent architect based in Florida who has toured all over the world and gets inspiration from the classics as well as cultural expressions of contemporary life, to work on the new design. The new prototype features a visible kitchen with display cooking and will include a bar at the restaurant's center and an oversized patio in an outdoor courtyard. Many locations have big screen TVs and music.
 |
Houlihan's family-friendly atmosphere has been attracting consumers for 32 years.
|
|
Houlihan's restaurants are in 21 states and Mexico and serve moderately priced American fare, featuring pastas and ribs. Locations are predominantly scattered throughout states east of the Mississippi, with the biggest presence in Chicago, New Jersey, and soon to be Pittsburgh with two new locations. “We want to grow corporate stores in the markets we're already in, like Chicago, Atlanta, Pittsburgh, Kansas City and St. Louis, and then franchise the balance of the markets,” notes Hartnett.
As the chain grows, the company will mainly be looking for freestanding buildings on lifestyle center or power center outpads. The restaurant prototype is about 6,200 square feet, but can be as small as 5,600 square feet and as large as 7,500 square feet, depending on the location and the projected volume.
The company's growth strategy also includes hotels and airports. With two Houlihan's operated by Concessions International at Atlanta's Hartsfield International Airport, the chain recently signed a license agreement to open a Houlihan's in Boston's Logan International Airport. Earlier this summer, a major hotel chain operator in Georgia opened a Houlihan's inside one of his Wyndham Hotels. In addition to several Holiday Inn locations, additional hotel sites are under development nationwide at the Radisson Hotel in Milwaukee, Wisconsin; the Hilton Garden Inn in Dubuque, Iowa; the Marriott in Amherst, New York; and the Grand Prairie Hotel & Convention Center in Hutchinson, Kansas.
 |
Houlihan's has been under new management, headed by President and CEO Bob Hartnett, for the last 2 years.
|
|
“Hotels are much easier to do than airports,” notes Hartnett, “because there are fewer airports and the lead time to get into an airport is much longer.”
Houlihan's is seeking franchisees across the country to open several locations in their markets. Qualifications include solid business and operating skills (not necessarily limited to the food industry) and the capital resources to build and expand Houlihan's. Initial required investments range from $300,000 for a conversion to $1.3 million for a new ground-up location. Franchisees must also either be restaurant operators or have an approved restaurant operator help build their business.
“Many times we will get someone who knows a lot about real estate and development, but they'll need a restaurant operator who can operate the business,” Hartnett says. “In some cases, it's a restaurant operator who can do both.”
— Susan H. Fishman
©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
|