UPDATEDX2: Plano-based Bennigan’s chain shuts down

Where will we go for St. Patrick's Day now?

The Bennigan's restaurant chain is shut down as of 7 a.m. Tuesday.

Bennigan's is managed by Plano-based Metromedia Restaurant Group, which also owns Plano Tavern, Southlake Tavern, and 29 Degrees, which were also shut down. Managers at Southlake Tavern were calling employees on Tuesday morning and telling them not to come in.

Metromedia, whose Web site is sputtering, also manages Bonanza, Ponderoza, and Steak and Ale, all of which appear to be dead. The eight local branches of Steak and Ale are not answering their phones or else have recordings announcing their closures.

Kirk Brewer

Empty parking lot at Plano Tavern on July 29, 3 p.m. Not even a "closed" sign on the door.

According to The Wall Street Journal, Metromedia recently prepared a bankruptcy filing after violating terms of a loan it had with GE Capital Solutions.

A statement from S&A Restaurant Group, which oversees Steak & Ale, Bennigan's, and Tavern restaurants, says that "S&A Restaurant Corp. and certain affiliates have filed for bankruptcy under Chapter 7 of the bankruptcy code. The companies that filed bankruptcy cases are popularly known as Steak & Ale, Bennigan's and Tavern restaurants. However, not all stores using these trade names have filed bankruptcy. For example, stores operated by franchisees are not named as debtors in these filings. ... The filing does not include Ponderosa and Bonanza which operate under Metromedia Steakhouses Company, L.P."

There are 20 branches in the Dallas area. An employee at a Plano Bennigan's said that the corporate stores were the ones that were closing and would be going through a two-week evaluation period to see whether franchisees would purchase them, and that most of the Bennigan's located along US 75 would likely be razed.

UPDATE: Statement from the franchise companies:

Bennigan's Franchising Company, L.P. and Steak & Ale Franchising Company, L.P., the owners of the Bennigan's and Steak & Ale trademarks and franchise agreements, were not part of the Chapter 7 filing made by its parent company, S&A Restaurant Corp. The 138 domestic and international franchisee-owned restaurants remain open and fully operational. Bennigan's Franchising Company, L.P. and Steak & Ale Franchising Company, L.P. will continue to provide high quality support services to its franchisees and remain focused on maintaining and maximizing the value of the franchise brands for its franchisees and their loyal customers.

UPDATE2: At least seven Bennigan's or Steak & Ale locations are on the market in Tampa, Fla., four of which will be auctioned off "as part of a nationwide sale next month", says the Tampa Tribune.

Posted by T.G.

Mike Orren, verified:

What's really sad is that these are the people who will be hurt:

Found that searching for video of an insidious 80's Bennigans jingle from the 80's. Anyone remember?:

<i>C'mon get happy. Sit down with all your friends.

'C'mon get happy. Come to Bennigans.</i>

4 years, 10 months ago
Link to this comment | Suggest removal

Scott Doyle, verified:

Does this mean that <a href="http://www.pegasusnews.com/places/bennigans-sport-addison/#search">Bennigan's Sport</a> off Belt Line & Montfort won't be showing those horrible commercials anymore?

4 years, 10 months ago
Link to this comment | Suggest removal

davidg, anonymous:

Don't you mean <a href="http://www.pegasusnews.com/places/bennigans-sport-addison/">Bennigan’s Sport (Closed)</a>? ;)

4 years, 10 months ago
Link to this comment | Suggest removal

John Turner-McClelland, verified:

So, is anyone going to blame their bankruptcy on the min wage increase? Where's Clay? :)

4 years, 10 months ago
Link to this comment | Suggest removal

Christin Richard, verified:

I guess every themed restaurant has a finite lifespan. They all seem so fresh and relevant when they first open with catchy jingles and slogans - then, 20-years later, when everyone runs to the newer restaurant across the street, the outdated eatery slowly and painfully fizzles out - as a nostalgic memory of a generational era.

4 years, 10 months ago
Link to this comment | Suggest removal

Howard Wen, verified:

Christi is pretty much on the mark. The restaurant business is essentially the entertainment business. These theme chain restaurants will come and go. I'm surprised it was Bennigan's that shut down, and not TGI Friday's. The market was saturated with three similarly themed major chains (the third being Chili's, of course).

4 years, 10 months ago
Link to this comment | Suggest removal

Scott Doyle, verified:

Killing me, John. Servers didn't get a raise except for when they work overtime. =(

4 years, 10 months ago
Link to this comment | Suggest removal

Mike Orren, verified:

...but kitchen and cleaning staff probably did.

4 years, 10 months ago
Link to this comment | Suggest removal

Jason Rice, verified:

Ok, John, I'll give ya a straw man to punch at!

Look at that! Not 48 hours into the new minimum wage and we have our first corporate casualty. It's the downfall of life as we know it. Time will draw to a stop and the stars will all go out.

(does that help? - I intentionally left out the sub-sub-sub minimum wage exemption the wait staff was still under. I didn't want to cloud a good argument with facts anyway -- Oh, wait, this just in, Mike did. Mike! Stopit)

4 years, 10 months ago
Link to this comment | Suggest removal

Scott Doyle, verified:

Depends, Miko. Methinks the wage is based on whether you're a tipped employee, and when I worked in a restaurant we split out a percentage of tips for bus boys and expo peeps.

Either way, I won't miss Bennigan's.

4 years, 10 months ago
Link to this comment | Suggest removal

jtmbls, anonymous:

Didn't that Sports Bar just open less than a year ago?

4 years, 10 months ago
Link to this comment | Suggest removal

xdavidwattsx, anonymous:

The only thing that would make this news any better was if all Bennigans were closing and Applebees, Fridays and Chili's were right behind it.

4 years, 10 months ago
Link to this comment | Suggest removal

knucklehead12, anonymous:

You know, I heard Applebees is an <a href="http://www.pegasusnews.com/blogs/pegasusnewsblog/2007/jul/26/belo_eats_to_life/">"international chaaain!!1!"</a>

4 years, 10 months ago
Link to this comment | Suggest removal

Jason Harris, verified:

Fear not all you Green beer tools out there, you still have Sherlock's.

4 years, 10 months ago
Link to this comment | Suggest removal

Stuffguys, anonymous:

Honestly as someone who has gone to Bennigans, Chilis and TGIF I can see why Bennigans closed. The last three times I went there (and it was to three different locations) the food wasn't very good, there was issues with cleanliness, and then I had a lovely 6 legged creature in an entree and they handled that one disastrously:

I called the waitstaff immediately back to the table (i had yet to take a bite) and pointed out the brown critter traipsing through the lettuce. She removed the entree, which was appropriate and didn't return. After I flagged a waiter down and told them of what had happened I was informed that their kitchen was approaching closing time (it was nearly 10 PM)so I wouldn't be able to order anything else. Not a problem, I was no longer hungry due to the ick factor but we had dinning companions that wanted refills on drinks and water and perhaps a bill. I didn't expect to have to pay for my food but we were a large group, surely they weren't going to comp all of us? That would have been the grand gesture but I relaized my situation was probably a freak incident and I was willing to cut them some slack. The bill came, and my entree was on the tab. I informed the waiter that perhaps it shouldn't be on it seeing that I was unable to eat it when a live animal stared back at me from my plate. By that point the manager became involved and informed me that I had to pay for it since I had ordered the entree. Surely the staff person had informed him that I had a live cockroach in my shredded lettuce on my plate of nachos! He told me he'd have to go verify the story with the waiter. He came back, the waiter had been cut for the evening, and he begrudgingly said "well I guess I have to believe your story. People are always trying to pull st like this by putting bugs in their food so that we comp everyone's meal." I informed him I was not asking for him to comp everyone's meal but only my entree, and that I usually don't carry live bugs with me. He sighed, grumped, and then obliged.

Chili's at least reinvents their menu with some degree of frequency as does Friday's. In fact, Friday's as a chain has expanded as of late because they keep re-inventing their menu. I used to seldom go to Friday's but their customer service has become top notch (at least at the few I've frequented) and their food actually is good for the price.

So nope, I won't miss Bennigans.

Resquiecant in pace.

4 years, 10 months ago
Link to this comment | Suggest removal

austinchu, anonymous:

I work for a company that manages and tracks gift cards, and I've been following retailers filing for bankruptcy on savvywallet.com. Ponderosa and Bonanza are still accepting Metromedia gift cards. I'm not sure about franchise owned Bennigans's. My advice? Go spend your gift cards, we simply do not know how long they will be accepting them. Don't forget The Sharper Image incident: $25m in unused gift cards.

4 years, 10 months ago
Link to this comment | Suggest removal

jtmbls, anonymous:

Ponderosa...Now that is a blast from the past! Do they even have any of those here in Texas?

4 years, 10 months ago
Link to this comment | Suggest removal

Pavel Lishin, verified:

Mr. Sonna, you handled your free trip to the zoo with a lot less yelling than I would have. Bravo.

4 years, 10 months ago
Link to this comment | Suggest removal

James Scott, verified:

D*mn minimum wage! The end is near...:(

4 years, 10 months ago
Link to this comment | Suggest removal

Jason Rice, verified:

Thanks James. I just didn't have it in me. I almost believe yours. ;o)

4 years, 10 months ago
Link to this comment | Suggest removal

Collin Gouldin, verified:

as kinda stated above, Plano Tavern is also closed.

4 years, 10 months ago
Link to this comment | Suggest removal

Howard Wen, verified:

Are there any franchise Bennigan's (and franchise Steak & Ale's) in the Dallas area? From the comments I've been reading on other blogs/sites concerning the bankruptcy, it was the Bennigan's restaurants owned by the corporate parent that were bad. But the franchises are regarded as much better quality.

4 years, 10 months ago
Link to this comment | Suggest removal

xdavidwattsx, anonymous:

I'm pretty sure they still have the same menus and general quality of food. The whole point of franchises are they they are similar in style to the parent company.

4 years, 10 months ago
Link to this comment | Suggest removal

Teresa Gubbins, staff:

howardwen, there is <a href="http://www.pegasusnews.com/places/bennigans-las-colinas/">one bennigan's</a> operated by a franchisee that's still open in the dallas area: it's in irving at 114 and walnut hill. there's also an outlet at the airport, but obviously not accessible unless you're flying somewhere.

your comment is interesting -- that the franchisee branches are considered superior to the corporate chains. i wonder what the issue was with corporate. they sure did treat the employees badly with the closing - not even giving them a day's warning. pretty shabby

4 years, 10 months ago
Link to this comment | Suggest removal

Scott Doyle, verified:

TG, from a liability standpoint it's probably best to have a surprise shut-down rather than tell EE's who prepare and serve food that their days are numbered.

It's all fun and games until someone imbibes dog semen (if they're lucky).

4 years, 10 months ago
Link to this comment | Suggest removal

BobS, anonymous:

Well, Doyle can sure shut down a thread. yikes.

4 years, 10 months ago
Link to this comment | Suggest removal

Scott Doyle, verified:

A small perk of working in insurance is hearing about crazy/ridiculous claims through the grapevine. Believe me, you don't want to eat at a restaurant where the kitchen & servers know they're about to get axed.

4 years, 10 months ago
Link to this comment | Suggest removal