Kluge-owned eateries close, file for bankruptcy

Kluge-owned eateries close, file for bankruptcy

Locally-connected billionaire John Kluge isn’t immune to a weak economy, at least in the sense that some of the restaurant chains he owns have had to close. According to the New York Times, the national chains Bennigan’s (an Irish pub sort of place) and Steak & Ale (beef and beer, we’re guessing) are facing dire times. Bennigan’s was shuttered Tuesday and has filed for bankruptcy, and Steak & Ale will also close.

Kluge owns a business conglomerate of which Texas-based Metromedia Restaurant Group, the parent company of Bennigan‘s and Steak & Ale, is one unit. Another unit is Metromedia Steakhouses, which owns Ponderosa and Bonanza and is not covered in the bankrupty filing. (As C-VILLE reported last week, though, our local Ponderosa has indeed closed.)

The Times quotes a restaurant industry expert, Amy Greene of Avondale Partners, who explains that with the minimum wage going up along with commodity prices, restaurants have rising costs that they can’t pass on to consumers—since those consumers, in turn, are being squeezed by gas prices and grocery-bill hikes. Also, the Times piece suggests, the fact that the country has so freaking many of the same kind of restaurant—your basic fake-nostalgia-decor, fried-appetizer, flair-in-a-parking-lot kind of place—that, as the economy tightens, some chains and locations will inevitably get pinched.

Having billions to your name doesn’t insulate your Bennigan’s from a chilly economy.

Posted In:     Uncategorized

Previous Post

Blunt truth: marijuana dealers are people you already know

Next Post

Not hard to adjust to life in Rouss Hall



Our comments system is designed to foster a lively debate of ideas, offer a forum for the exchange of ad hoc information, and solicit honest, respectful feedback about the work we do. We’re glad you’re participating. Here are a few simple rules to follow, which should be relatively straightforward.

1) Don’t call people names or accuse them of things you cannot support.
2) Don’t direct foul language, racial slurs, or offensive terms at other commenters or our staff.
3) Don’t use the discussion on our site for commercial (or shameless personal) promotion.

We reserve the right to remove posts and ban commenters who violate any of the rules listed above, or the spirit of the discussion. We’re trying to create a safe space for a wide range of people to express themselves, and we believe that goal can only be achieved through thoughtful, sensitive editorial control.

If you have questions or comments about our policies or about a specific post, please send an e-mail to editor@c-ville.com.

Leave a Reply

avatar
  Subscribe  
Notify of