Home Restaurants In The News Financial News from NationsRestaurantNews.com
    Nation's Restaurant News


    • Behind the scenes with Domino’s on Super Bowl Sunday

      With 170,000 transactions or more moving through the online ordering systems of Domino’s Pizza during Super Bowl Sunday, the chain’s information technology department needs to have its game face on.

      Lance Shinabarger, vice president of infrastructure and security for Ann Arbor, Mich.-based Domino’s Pizza Inc., spoke with Nation’s Restaurant News just ahead of the Super Bowl about the pressure to perform for the 57 employees on hand at chain headquarters during the big game.

      Domino’s, a system of more than 9,541 worldwide restaurants, including at least 4,891 in the United States, monitors all aspects of its online operation during one of the largest pizza ordering and delivery days of the year, from pre-game load testing to after-the-game trash talking.

      Shinabarger gives NRN a peak behind the curtain.

      How many pizzas does Domino’s expect to move on Super Bowl Sunday and how does that compare to last year?

      About 11 million slices, or 1.4 million whole pies. That’s up by about 80 percent from a typical Sunday, and it’s about the same as last year.

      What has Domino’s done, IT systemwise, to prepare?

      Every year we go through and do extreme load testing. We set up a bunch of synthetic transactions that basically emulates a human placing an order on our system. Because the process is automated, it gives us the ability to ramp up the number of orders to the point where it would be greater than what we’d expect to see during the Super Bowl. We do that because while you might have great estimates [of game-related business], you never know exactly what to expect and you definitely don’t want [systems] to be down during the Super Bowl because about 30 percent of all our orders come through the online channel.

      How will Domino’s monitor the online ordering system’s health during the game?

      We’ll continue those synthetic transaction tests and watch the results. We also will have some of our folks in the command center actually placing orders into the system. In addition to that, we have a number of monitors that we watch, so every piece of our equipment is monitored by somebody.

      What networking components will you be watching closest?

      There are the load balancers that let us redirect traffic from one data center to another, if we need to; the firewalls that provide some layers of security; routers; and the actual servers, themselves. We have what we call ‘playbooks’ for every component. They give the normal ranges of operation, so we can do a little health check. If something falls out of its normal range, we sound the alarm.

      <!--pagebreak-->

      Continued from page 1

      When a problem arises, what happens?

      At that point, it is all hands on deck. A lot of these pieces have built in redundancy, so we can switch people placing orders from one piece of equipment to another. If you were in the middle of placing an order and we had to shift you from one piece of equipment to the other, you would not know that had happened. We have the people who are the experts on the system there, in the building, eating pizza and watching the game, so they can work on it, if necessary.

      So you’ll have refreshments there?

      Yes. We’ll be able to watch the game, like everyone else. Actually, a lot of the senior executives come in and make pizza for the people who are here. That’s a fun piece of the day. The CIO usually comes in, but this year it will be the CFO and that’s pretty high on the food chain around here. A lot of VPs are here, too.

      What makes the Super Bowl special?

      On a typical day, we deal with all the time zones. So a person on the East Coast starts ordering at 6 p.m., which is still 3 p.m. in the Pacific Time zone. But for the Super Bowl, there is only one kick off and one half time. It doesn’t matter what time zone you are in, everybody is ordering pizza right then. Normally you spread that order load over a four or five hour window, but for Super Bowl there are just those two peaks.

      At the end of the game, what tells the IT team that it is the winner?

      We monitor [traffic] down to the minute. What you see after half time, once the third quarter starts, is that those numbers really fall off and it becomes like a normal ‘busy’ night. So you hear a big sigh of relief after half time is done. That’s when the mood really lightens up and everyone gets up from their desk, starts to wonder around and the trash talking heats up.

      Contact Alan J. Liddle at alan.liddle@nrn.com.
      Follow him on Twitter: @AJ_NRN
       



    • From McDonald’s to Smashburger

      Former McDonald’s franchisee Irwin Kruger, who operated the brand’s high-grossing Times Square unit, opened his first fast-casual Smashburger location on New York’s Long Island earlier this week.

      Kruger, whose company ISK Systems LLC sold its four McDonald’s restaurants in Manhattan back to the Oak Brook, Ill.-based company in 2010, said he plans to open at least 20 Smashburger units on Long Island over the next several years.

      He also said he would not rule out the possibility of expanding Smashburger into Manhattan in the future. While he said nothing is firmed up,” Kruger noted that “the market in New York is ripe for Smashburger.”

      “The more we learn about operations and how to run a [Smashburger] in a high-volume environment, the better we can fit into the Manhattan market,” he told Nation’s Restaurant News. “I know what the challenges are like there, so if and when we do, we need to be prepared.”

      Kruger spent 44 years as a McDonald’s franchisee, and at one time operated 23 restaurants in suburban locations in New Jersey, Rhode Island and Massachusetts.

      Meanwhile, he said his first Smashburger restaurant in suburban Hicksville, N.Y., opened to “great success. I think we have a winner on our hands. I think it will generate significantly more than $1 million [in sales] this year.”

      Kruger said the 2,350-square foot better-burger restaurant is located at a busy intersection and occupies the end cap in a strip mall that also includes a Starbucks unit. Kruger said the location is three blocks from the Hicksville commuter train station and close to a multiplex movie theater.

      “It’s a great location,” he said.

      Area competitors include Five Guys, Bobby Flay’s Burger Palace, Panera Bread, Chipotle and Applebee’s.

      He said Smashburger officials have given him the opportunity to depart from the concept’s traditional look. “This unit has a lot of architectural details I employed during my career at McDonald’s,” he said. “It’s a combination of industrial look and exciting finishes, with a lot of glass and steel and imported chairs and custom-made furniture.”

      The restaurant seats 55 people.

      Kruger said he has two more restaurants scheduled to begin construction in Wantagh and Port Washington, both on Long Island, which he hopes to have open in the next four months. In addition, he is currently scouting a third site in Riverhead.

      In January, Smashburger said it had added 51 new restaurants in 2011 to close out the year with 143 outlets. The Denver-based chain posted a 3-percent increase in same-store sales at existing locations and generated systemwide sales of $115.7 million.
      [http://nrn.com/article/growth-drives-sales-smashburger]

      Chairman and chief executive Dave Prokupek said the brand expects to add 50 to 70 new restaurants in new and existing markets in 2012. That number includes 15 to 20 new company locations, he said. [link to video]

      Smashburger is owned by Consumer Capital Partners.

      Contact Paul Frumkin at paul.frumkin@penton.com
       



    • A look at today’s consumer

      In an economic climate that remains challenging, restaurant operators must understand what motivates consumers to select one restaurant over another, according to the National Restaurant Association’s 2012 Restaurant Industry Forecast, released earlier this week.

      The report, which projected that restaurant industry sales will reach a record high of $632 billion in 2012, offers insight into the minds of consumers, their financial situation and spending patterns following a year when many consumers didn’t feel the economy improved at all.

      A survey in December 2011 found that 92 percent of adults described the current state of the economy as either “fair” or “poor,” the same assessment given at the end of 2010.

      Their outlook for the year ahead was even less optimistic.

      The report found that 3 out of 10 adults said they think the economy will get better in 2012, while a solid majority expect things to get worse (24 percent) or stay the same (44 percent).

      That was similar to responses at the end of 2010, when 29 percent said conditions would improve in 2011, and 17 percent thought things would get worse.

      On a more personal level, however, consumers were feeling better about their prospects with 33 percent of adults saying their household financial situation would improve this year. Only 9 percent expect their personal finances to get worse.

      The report sees American diners as falling into three categories:

      --The Optimistic: Twenty one percent of consumers said they are confident in their financial situation and have not cut back on spending. These are mostly men (63 percent), and they dine out the most.

      --The Cautious: This category includes the 42 percent who are taking a wait-and-see approach and have cut back somewhat on spending, until the economy improves. These are split between men and women.

      --The Hunkered Down: Thirty seven percent said they are very concerned about the economy and have cut back significantly. Of these, 57 percent are women.

      <!--pagebreak-->

      Continued from page 1

      The report found that 72 percent of optimists said their spending levels on things like restaurants, entertainment, clothing and travel were about the same as before the recession. Only 16 percent in this category said their spending was lower.

      By contrast, 51 percent of cautious consumers and 67 percent of hunkered down consumers said their spending levels were lower than pre-recession days.

      Overall, the recession has caused eight out of 10 to cut back on spending to some degree, the report found.

      However, consumers are suffering from pent up demand and restaurants need to coax consumers with the right incentives.

      The report found that nine out of 10 operators say their customers are more knowledgeable and sophisticated about food and beverages than ever before. As a result, most added new food items last year and plan to again this year.

      The top attributes consumers look for when choosing a full-service restaurant are food quality, customer service and value. For quick-service dining, consumers look for food quality, value and speed of service.

      Local sourcing of ingredients and nutrition – especially better-for-you-foods for kids – are also hot trends for 2012, according to the report, which taps the earlier NRA survey of American Culinary Federation chef members for its “What’s Hot in 2012” report released in December.

      Nearly 75 percent of consumers said they are more likely to visit a restaurant that offers locally produced items.

      <!--pagebreak-->

      Continued from page 2

      Though demand for it is not as strong among limited-service and family-dining segments, 87 percent of fine dining operators said they offer locally sourced produce and 73 percent offer locally sourced meat or seafood. One out of four use produce from an on-site garden.

      About 75 percent of consumers also said they are trying to eat more healthfully at restaurants than they did two years ago, and most restaurants confirm that customers are ordering more healthful items.

      Also included in the report:

      --Target travelers: In 2011, tourism accounted for an average of 30 percent of sales at fine-dining restaurants; 24 percent of sales in family and casual dining; and about 15 percent of sales for quick-service operators.

      This year international tourism to the United States is expected to hit a record 66.5 million visitors, up from 63.2 million last year.

      --Opportunities off-premise: Last year, 57 percent of adults said they would be likely to use delivery from full-service restaurants, and 53 percent said they would use curbside takeout.

      To meet the growing demand, one-third of full-service operators said they upgraded their takeout packaging in 2011, while another three out of 10 said they plan to do so this year.

      --Talk technology: Nearly 4 out of 10 consumers said they would likely use an electronic ordering system and menus on tableside tablet computers. About half said they would use payment options on tablets, as well as using a restaurant’s smart phone app to view menus and make reservations.

      --Working for workers: Among consumers who work full time, 59 percent said they buy a carry out lunch from a restaurant or fast-food place at least once per week. Another 50 percent eat lunch on premises at least once a week, while 19 percent said they have lunch delivered at least once per week.

      Of those workers, 41 percent said they buy breakfast, a snack or beverage on their way into work at least once per week; and another 41 percent buy a beverage or snack during their workday.

      The National Restaurant Association provides its annual Restaurant Industry Forecast free-of-charge to members. More information can be found at www.restaurant.org/forecast. To view the social media version of the association’s press release and partial data, including video and downloadable images, visit www.restaurant.org/pressroom/socialmedia/forecast2012.

      Contact Lisa Jennings at lisa.jennings@penton.com.
      Follow her on Twitter @livetodineout
       



    • Sonic names James O’Reilly CMO

      Sonic Corp. on Friday named James O’Reilly as chief marketing officer of the 3,555-unit drive-in chain.

      O’Reilly, who most recent served as chief concept officer for Lakewood, Colo.-based Einstein Noah Restaurant Group Inc., succeeds Danielle Vona, who departed in January.

      Cliff Hudson, chairman and chief executive of Oklahoma City, Okla.-based Sonic, said O’Reilly “brings an impressive track record of innovative marketing, brand positioning and product development. He is a seasoned executive who is highly regarded for his broad range of expertise, and we are confident that his leadership and insight will help support the growth of our brand.” O’Reilly will also hold the title of senior vice president.

      In his three years with Einstein Noah, O’Reilly managed marketing, research and development and information technology. Prior to Einstein Noah, O’Reilly spent 13 years with Yum! Brands, working with KFC, Taco Bell, Pizza Hut and Yum! Restaurants International in various capacities.

      Contact Ron Ruggless at ronald.ruggless@penton.com.
      Follow him on Twitter: @RonRuggless

       



    • Terrine of octopus with fried Caesar dressing and crudo of hiramasa

      Cool Plates features dishes from across the country to help inspire chefs' creativity.

      Executive chef Michael Voltaggio makes a Caesar dressing by cooking eggs in an immersion circulator at 63° Celsius, or 145° Fahrenheit, and emulsifying the yolks in a cream sauce with grapeseed oil, anchovy, garlic and Parmesan cheese. Then he adds gellan gum to stabilize it.

      “It sounds like a whole elaborate thing, but basically we’re creating a homogenous emulsion that doesn’t break at all when you fry it,” he said.

      He cuts the emulsion into cubes, breads them and then fries them.

      He serves those croutons on a thinly sliced octopus terrine with raw hiramasa kingfish and romaine lettuce hearts.

      Voltaggio says the Caesar dressing and romaine hearts give “a certain level of comfort to the dish” that eases people’s fear at eating octopus and raw fish.

      Contact Bret Thorn at bret.thorn@penton.com.
      Follow him on Twitter: @foodwriterdiary
       



    • Government ties Taco Bell to outbreak investigation

      Taco Bell has been linked in an Oklahoma state government document to a recent 10-state outbreak of Salmonella Enteritidis illness that appears to now be over, but which is believed to have sickened at least 68 people.

      The document — which outlines the state’s investigation into the outbreak in Oklahoma last fall — states that there were 16 cases of Salmonella Enteritidis illness across five Oklahoma counties, four of which required hospitalization.

      Of 12 people who were interviewed by public health investigators, 11 recalled eating out prior to the onset of their illness and eight of the 11 said they had eaten at a Taco Bell restaurant, the document said.

      The document was titled “Summary of Supplemental Questionnaire Responses Specific to Taco Bell Exposure of Oklahoma Outbreak-Associated Cases
Multistate Salmonella Enteritidis Outbreak Investigation November 2011-January 2012.”

      The federal Centers for Disease Control and Prevention in Atlanta last month also disclosed details about an investigation into the Salmonella Enteritidis outbreak that said many of the people sickened recalled eating at a restaurant chain the agency would only identify as “Mexican-style, fast-food Restaurant Chain A.”

      The CDC said that despite the cooperation of the restaurant chain and its suppliers, investigators had not been able to identify a specific product as the cause of the outbreak that is believed to have begun in October. It said evidence suggested that the Salmonella that contaminated food sold by “Chain A,” if any, had been introduced during manufacturing or along the supply chain before the product was delivered to the chain’ establishments.

      In response to media inquiries about the outbreak investigation, officials of Irvine, Calif.-based Taco Bell Corp. issued the following statement:

      “The CDC has stated the public health is not at any risk, and this incident is completely over. They have not identified the food source of the food-borne illness that occurred in October and November of 2011. The CDC indicated that some of the people who were ill ate at Taco Bell, while others did not. They believe that the problem likely occurred at the supplier level before it was delivered to any restaurant or food outlet. We take food quality and safety very seriously.”

      <!--pagebreak-->

      Continued from page 1

      Wednesday, FoodSafetyNews.com, a website financed by foodborne illness litigation specialty law firm Marler Clark of Seattle, named Taco Bell as “Restaurant Chain A” based on a document it received from the Oklahoma State Department of Health Acute Disease Service.

      Prior to FoodSafetyNews.com’s disclosure that Taco Bell was named in the Oklahoma public health document, well-known outbreak litigator William Marler, of Marler Clark, in his own MarlerBlog.com had for several days urged CDC and state health officials to identify Chain A, while suggesting that evidence pointed to Taco Bell’s involvement.

      “Ultimately, the reason why I was pushing CDC and Taco Bell to come clean on this latest outbreak is that I think the public deserves to know, so consumers can make informed choices in these serious matters about where to spend their money,” Marler told Nation’s Restaurant News.

      Marler said he has been involved in litigation with Taco Bell in the past and still represents some plaintiffs in actions against the chain with nearly 5,600 restaurants in the United States.

      CDC officials earlier told Nation’s Restaurant News that because the agency is not regulatory in nature, it typically defers to state authorities related to whether or not to publicly name businesses implicated in foodborne illness outbreaks. They said the CDC does release the names of such companies in some instances, if doing so would protect the public from an ongoing health threat or was necessary to further a recall, for example.

      As of Jan. 19, the CDC said, the number of ill persons identified in each state with the outbreak strain of Salmonella was as follows: Texas, 43; Oklahoma, 16; Kansas, two; and one each in Iowa, Michigan, Missouri, Nebraska, New Mexico, Ohio, and Tennessee.

      Contact Alan J. Liddle at alan.liddle@penton.com.
      Follow him on Twitter: @AJ_NRN



    • Chipotle to hold line on pricing

      Despite continued commodity inflation expected in 2012, Chipotle Mexican Grill is not planning a systemwide menu price increase except on the West Coast where restaurant pricing is still catching up to the rest of the system.

      In a call with analysts Wednesday to discuss fourth-quarter results, Chipotle reported its sixth consecutive quarter of double-digit increases in same-store sales.

      Officials said a menu price increase last summer contributed about 4.9 percent to the 11.1-percent increase in same-store sales the chain recorded during the Dec. 31-ended quarter.

      For the year, menu pricing added 2.9 percent to the 11.2 percent same-store sales increase.

      Jack Hartung, Chipotle’s chief financial officer, said there has been no consumer push back as a result of the higher menu prices, either on average check or transactions.

      In the chain’s Pacific region, however, menu prices have been historically lower. A price increase there in the first quarter is expected to add about 1 percent to same-store sales, Hartung said.

      The menu price increases taken last summer, however, did not cover the 9.3-percent increase in commodity inflation seen in 2011, he added.

      In 2012, the company expects to see lower costs for basics like avocados, dairy and produce, but that benefit will be offset by higher costs for beef, chicken, rice and beans.

      Hartung said overall food inflation will be in the mid-single-digit range in 2012.

      Also discussed in the call Wednesday was:

      All natural meat: As of the fourth quarter, all of the meat served at Chipotle is all natural, meaning it comes from animals that have not been treated with antibiotics or added hormones, and were raised humanely, said Steve Ells, Chipotle’s founder, chair and co-chief executive.

      “Today, we are the only national restaurant company to serve all naturally raised meat,” he said.

      A cornerstone of the chain’s Food With Integrity program, Chipotle has been moving slowly toward its goal of offering only all-natural meat over the past decade. Ells, however, said occasional supply shortages may force the chain to revert to conventionally raised meats in some markets.

      Menu expansion: When asked if Chipotle would expand its menu with new items or by adding breakfast, Ells pointed to the strong sales growth the chain has seen offering the same menu for 19 years.

      Chipotle has experimented with the addition of soups, chili and smaller items like tacos, and that will continue, he said. The chain also tested chorizo in the New York marketplace last year, but discontinued the test after several months.

      In the end, Ells said, people keep coming back for their chicken burrito or barbacoa tacos.

      “I think we’ve done a very good job of staying focused, which makes the food taste better and allows us to have this very, very efficient economic engine, which allowed us to invest disproportionately back into the quality raw ingredients and our top-performing people,” Ells said.

      “I think it’s a good system, and I don’t see that there’s any reason to add something like shrimp tacos or roll out breakfast now,” he added. “In fact, maybe something like that could even be detrimental to the model.”

      Throughput: Investments in improving throughput have boosted sales during peak hours, said Monty Moran, Chipotle’s co-chief executive.

      Peak transactions have grown from the typical 100 per hour range to about 110 to 115, Moran said.

      “Our throughput was faster in December than our previous December and even quicker than it was during our best work in 2007,” he said. “It’s really all just getting ready for game time, which is sort of April/May/June, when seasonality dictates that we have a lot more people coming into our restaurants.”

      Marketing: Chipotle has been underspending on marketing in recent years, Hartung said, and though the company may invest a bit more, marketing efforts will continue to focus on building a more sustainable relationship with customers.

      Last year, for example, Chipotle’s short film “Back to the Start,” which tells the story of a farmer’s move away from factory farming, has been viewed online about 4.5 million times and has been seen by an estimated 26 million in movie theaters across the country.

      Rather than quick advertizing blitzes, Ells said the chain is looking for ways to connect emotionally with customers.

      “It’s marketing this way that I think is more sustainable long term,” he said. “It’s not about a marketing blitz or limited time offer that might provide a blip or move the needle, as you say, in a jerky way. Rather, it’s something calculating and sustainable.”

      Contact Lisa Jennings at lisa.jennings@penton.com.
      Follow her on Twitter: @livetodineout
       



    • Restaurant sales growth varies by region

      While the National Restaurant Association projects in its 2012 Restaurant Industry Forecast that the U.S. foodservice industry will generate an overall sales increase of 3.5 percent, or $631.8 billion, this year, the trade group noted that growth can vary widely from region to region.

      For example, of the nine U.S. Census regions, the West South Central area — Texas, Oklahoma, Louisiana and Arkansas — is projected to post nominal restaurant sales gains of 3.9 percent in 2012, the highest rate of regional growth in the United States.

      In comparison, the New England region — Maine, New Hampshire, Vermont, Massachusetts, Connecticut and Rhode Island — is expected to generate the most lackluster sales growth at 2.5 percent.

      Although a number of factors can contribute to performance, key influencers of state sales growth include gains in total employment, real disposable personal income and total population, the NRA said.

      The following offers a glimpse of how the NRA expects the nine regions to perform in 2012. The National Restaurant Association provides its annual Restaurant Industry Forecast free-of-charge to members. More information can be found at www.restaurant.org/forecast. To view the social media version of the association’s press release and partial data, including video and downloadable images, visit www.restaurant.org/pressroom/socialmedia/forecast2012.


       



    • Restaurants reimagine menu favorites

      Restaurant chains are looking to capitalize on successful menu items by introducing variations on tried and true favorites.

      Rubio’s Fresh Mexican Grill, the 203-unit chain in Carlsbad, Calif., that popularized fish tacos, has added two new iterations of that item.

      The sesame soy fish taco is beer-battered wild Alaskan pollock topped with soy sauce, creamy wasabi dressing, spring mix and avocado slices. The avocado corn fish taco is the same fish, topped with avocado corn salsa and creamy chipotle sauce.

      Atlanta-based Popeyes Louisiana Kitchen has reprised its award-winning Wicked Chicken as a limited-time offer, with the addition of a creamy garlic, pepper and Parmesan dipping sauce.

      The 1,580-unit quick-service chain first introduced the item — made with strips of chicken breast marinated with Louisiana seasonings, battered, breaded and served in crispy, twisted shapes — in 2010. It won the NRN MenuMasters award for best LTO in 2011.

      Wicked Chicken is available with Cajun fries, a buttermilk biscuit and a miniature bottle of hot pepper sauce through Feb. 19 for $3.99.

      Dunkin’ Donuts in Canton, Mass., has expanded on its non-breakfast sandwich line — currently featuring grilled cheese sandwiches on Texas Toast for $2.99 — with four Bakery Sandwiches. They are Ham & Cheese, with Black Forest ham, white Cheddar cheese and creamy Dijon sauce; Turkey Cheddar & Bacon with ancho chipotle sauce; Chicken Salad; and Tuna Salad.

      All Bakery Sandwiches are available on a French roll, bagel or croissant at participating restaurants, and are priced at $3.49 each.

      “As people find themselves busier than ever, they are snacking more frequently throughout a clockless day,” Dunkin’ Brands’ chief global marketing and innovation officer, John Costello, said in a statement. “The addition of Bakery Sandwiches to Dunkin’ Donuts’ all-day menu reflects our commitment to meeting our guests’ changing eating habits and expectations for more fast and satisfying menu items that can be enjoyed any time of day.”

      Quick-service chain Jack in the Box has expanded on its hamburger line with the introduction of a BLT cheeseburger LTO, beginning Feb. 2.

      It is being promoted as a combo meal with a 20-ounce drink and small order of fries for $4.99

      “When it comes to burger toppings, our guests have a major crush on bacon,” menu marketing and promotions director Tracy Dunn said in a statement. “We’ve seen an overall increase in the sale of products that feature our hickory-smoked bacon, which we introduced last year.”

      San Diego-based Jack in the Box also has improved its beef patty, which is now being seasoned while it cooks.

      Contact Bret Thorn at bret.thorn@penton.com.
      Follow him on Twitter: @foodwriterdiary
       



    • Landry’s shutters eight Morton’s restaurants

      Landry’s Inc. on Wednesday shuttered at least eight units of Morton’s steakhouse in various markets as it completed its acquisition of the high-end steakhouse company.

      The $116.6 million acquisition of Chicago-based Morton’s Restaurant Group Inc. was completed Wednesday in a tender-offer deal with affiliated companies owned by Houston-based Landry’s chairman and chief executive Tilman Fertitta.

      Morton’s units were reported closed in Atlanta, Boston, Brooklyn, N.Y., Denver, Jacksonville, Fla., Miami Beach, Fla., Phoenix and Tyson’s Corner, Va. The company’s website lists 58 remaining U.S. Morton’s locations. At the end of 2011, the company had reported 67 domestic units.

      Several of the markets, such as Atlanta, Boston, Denver and Phoenix, had at least two restaurants, and at least one remains open in each of those cities.

      “Having been in business for more than 30 years, Morton’s operates domestically and internationally, with multiple locations in some cities,” said Kris Guthrie, Landry’s vice president of marketing. “Over time, demographics shift and so do the areas in which businesses thrive and it’s because of this that we must close a few Morton’s locations,” Guthrie said.

      Landry’s early in January also shuttered a number of McCormick & Schmick’s units after it closed on its purchase of that Portland, Ore.-based upscale seafood chain.

      The staff at the Morton’s unit in West Palm Beach, Fla., initially was told that store too was closing, the company later said the report was “horrible mistake” and that the 21-year-old Morton’s location was to be renovated and not closed.

      Morton’s operates restaurants in 26 states and Puerto Rico and has six international locations in Hong Kong, Macau, Mexico City, Shanghai, Singapore and Toronto.

      Privately owned Landry’s owns Rainforest Cafe, Saltgrass Steak House, Landry’s Seafood House, Claim Jumper, Bubba Gump Shrimp Co. and The Chart House, as well fine-dining restaurants Vic & Anthony’s, Brenner’s Steakhouse, Grotto, LaGriglia, Willie G’s and Oceanaire.

      Landry’s also owns the Golden Nugget Hotel & Casinos in Atlantic City, N.J., Las Vegas and Laughlin, Nevada, the Kemah Boardwalk, the San Luis Resort, Inn at the Ballpark and the Downtown Aquarium in Denver and Houston.

      Landry’s said the companies will generate about $2.5 billion in revenue in 2012.

      Contact Ron Ruggless at ronald.ruggless@penton.com.
      Follow him on Twitter: @RonRuggless