Lone Star Steakhouse & Saloon

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Lone Star Steakhouse & Saloon
Company typePrivate
IndustryRestaurants
Founded1989; 35 years ago (1989)
DefunctSeptember 17, 2017; 6 years ago (2017-09-17)
HeadquartersTamuning, Guam
Number of locations
4
Areas served
Guam, United States
ProductsBurgers, Steak, Seafood, Salad
ParentDay Star Restaurant Group
Websitelonestarsteakhouse.com
This article is about the American restaurant chain. For the Canadian ‘’Lone Star Texas Grill’’ restaurant chain, see Val Belcher.

Lone Star Steakhouse & Saloon was a casual dining restaurant chain, which served steak, seafood, salad, and similar food items. Lone Star opened its first restaurant in 1989 in Winston-Salem, North Carolina.[1] In March 1992, Lone Star became a public company with eight restaurants opened. At its maximum, 267 Lone Star Steakhouses were in operation.[1] The company filed for Chapter 7 bankruptcy on September 7, 2017.[2]

As of August 2019, the still-operating company website advertised four locations, all of which are independently confirmed closed.[3][4][5][6] Also as of November 2019, only one independently owned and operated location of this restaurant still exists according to Yelp in Tamuning, Guam.[7]

On October 6, 2019, the second-to-last location in Knightdale, North Carolina officially closed,[8] which was the last Lone Star location in the continental United States. The location became a Saltgrass Steakhouse.

History

Lone Star was founded by Jamie B. Coulter, who started his restaurant career as a major franchisee of the Pizza Hut chain.[1] Separately, a company called Creative Culinary Concepts opened a prototype Lone Star Steakhouse & Saloon restaurant in Winston-Salem, North Carolina in 1989.[1] in 1991, Coulter signed an agreement with Creative Culinary Concepts to open 4 Lone Star restaurants, which would have a Texas Roadhouse-style ambiance.[1] Coulter incorporated Lone Star Steakhouse & Saloon in January of 1992, becoming the President, CEO, and Chairman of the chain.[1]

The chain, at this point featuring eight restaurants, went public in March of 1992 to raise the cash for expansion. The initial public offering raised $91 million.[1] In 1993, 1994, and 1995, Lone Star was awarded the distinction of "best small business in the country" by Forbes magazine, and in 1994 ranked #6 in Fortune magazine's list of fastest-growing companies - a higher rank than any other restaurant.[1] Coulter himself was named chief executive of the year in 1996 by Restaurants and Institutions.[1]

By the end of 1995, there were 182 restaurants in operation, which expanded further to 205 locations by March of 1997 and further yet to 265 by the end of that same year.[1] However, Lone Star faced problems with market saturation, rising food and labor costs, declining same-store sales, and management turnover as the company entered the late 90s.[1] The company's growth came to a sudden halt, with the chain reaching its maximum extent of 267 restaurants after opening just two in all of 1998, and ended the 1990s with 265 restaurants after closing two in 1999.[1] During this time, the company's stock price plummetted from $46 in 1996 to just $6 by the end of 1998.[1] As a result of this turmoil, a minor shareholder in Lone Star, Guy W. Adams, waged a successful battle to unseat Coulter as Chairman of the Board of Directors of the company he had founded, though Coulter maintained his position of CEO.[1] Lone Star had begun to seek a buyer to take the company private in 2002.[1]

Private buyout

On August 18, 2009, the 222-restaurant large Lone Star Steakhouse chain signed an agreement to be acquired by Lone Star Funds, an unaffiliated, Dallas-based private equity firm, for $27.10 per share in cash.[9] This initial agreement was opposed by some major shareholders.[10][11] On November 11, 2006, Lone Star Funds raised its offer to $27.35 per share. On December 12, 2006, shareholders voted to accept the offer.

Because it became private, Lone Star Steakhouse has been de-listed from NASDAQ. This is also the reason Lone Star stopped sponsoring the #40 Dodge of David Stremme.[citation needed] Following the buyout, new and remodeled Lone Star Steakhouse locations switched from the classic "Texas Roadhouse" theme to a more urban-style restaurant, abandoning most of the Texas and cowboy themes in its older restaurants. The newer restaurant design is more upscale, with virtually none of the Americana seen in the pre-2006 restaurants. This was largely due to the changes made from two major shareholders that bought into the new ownership in March 2007, Jean Stupec and Kimberly Anderson. Significant changes were made and the talk of closing locations were soon underway. This was mostly due to the convincing shareholders meeting that either a number of locations close or they will lose a significant amount of money. This shareholders meeting was lead by Jean Stupec, who is well known in the industry for possessing one of the best business minds in the restaurant field. It was also lead by her now husband, Daniel Skinner. Daniel Skinner was also well known in his field as one of the top union laborers in the downtown Chicagoland area.

Under Lone Star Funds' ownership, and largely in response to the Great Recession, Lone Star significantly reduced its restaurant locations. This included closures in early 2014 that totaled 27 restaurants, bringing the chain down to 152 stores.[12] The closures continued, including another large-scale store closing in September of 2015 that saw another 19 units close, bringing the chain down to 112 stores.[13]

In December 2015, Lone Star Steakhouse and Texas Land & Cattle restaurant chains were acquired by the newly formed Day Star Restaurant Group, at which point there were 78 Lone Star Steakhouses in operation.[14] Day Star co-founder Scott Smith left Day Star in March 2016 due to disagreements with his business partners, mainly Jean Stupec and Kimberly Anderson, over the direction of the company.[14] After Smith's departure, restaurant closures accelerated, with the Lone Star brand declining from 64 locations at the end of December 2015 down to 16 locations in January 2017.[14] Among these closures was the closure of the original Lone Star Steakhouse in Winston-Salem, North Carolina, which shut down in the summer of 2016.[15]

After closing most of the remaining restaurants, Lone Star Steakhouse filed for Chapter 11 bankruptcy protection on February 13, 2017.[16][2] The company claimed that the remaining restaurants were sold to a new owner on July 31, 2017, and for that reason explained that any gift cards would no longer be honored.[17] The Chapter 11 restructuring was converted to a Chapter 7 bankruptcy filing on September 7, 2017.[2]

As of August 2019, the company website lists 4 locations, all of which have closed. The website lists locations in Mount Vernon, Illinois, which closed in March 2019;[18] in Mount Pleasant, Michigan, which closed on October 5, 2018;[19] in Asheville, North Carolina, which closed on July 2, 2018;[20] and in Middletown, Ohio, which closed in September of 2018.[21] Yelp indicates that one instance of this restaurant still exists by name in Tamuning, Guam.[7]

Associated restaurants

Sullivan's

Sullivan's Steakhouse was conceived of by Lone Star founder Jamie Coulter in 1995, who sought to introduce a new restaurant brand that would cater to the lower end of the upscale steakhouse market, where checks would average $35 per patron.[1] The restaurants, named after boxer John L. Sullivan, were inspired by 1940's interior decor that was designed with an 80% male clientele in mind.[1] The first Sullivan's opened its doors in May of 1996 in Austin, Texas.

Sullivan's hit an all-time high of 20 restaurants by 2011.[22]

Sullivan's separated from Lone Star in 2012, when the Del Frisco's Restaurant Group, consisting of 32 restaurants under the Del Frisco's Double Eagle Steak House, Del Frisco's Grille, and Sullivan's Steakhouse banners, went public.[23]

The original Sullivan's Steakhouse in Austin closed on January 9, 2018.[24]

The Del Frisco's Restaurant Group sold its then-14 unit Sullivan's Steakhouse division to Romano's Macaroni Grill in September 2018 in order to pay off debts.[25]

As of July 2019, there are 13 Sullivan's Steakhouses in operation.[26]

Del Frisco's

Del Frisco's was founded in 1981, and was bought out by Lone Star Steakhouse & Saloon shortly before the launch of the Sullivan's Steakhouse brand.[1][27] Del Frisco's would serve as the most upscale of the Lone Star Steakhouse family of restaurants.[1]

The Del Frisco's Restaurant Group, including restaurants under the Del Frisco's Double Eagle Steak House, Del Frisco's Grille, and Sullivan's Steakhouse banners, separated from Lone Star when it went public in 2012.[23]

As of July 2019, there are a total of 16 Del Frisco's Double Eagle Steak House restaurants and 24 Del Frisco's Grille restaurants in operation.[28][29]

Texas Land & Cattle

As of 2002, Texas Land and Cattle steakhouses (stylized TXLC) were part of The Steak Company, a corporate umbrella that also owned the Lone Star, Sullivan's, and Del Frisco's brands.[30]

Texas Land & Cattle was purchased along with Lone Star Steakhouse from Lone Star Funds by Day Star Restaurant Group in December 2013; at the time of the sale, there were 27 Texas Land & Cattle restaurants, most of which were in the state of Texas.[14]

At the end of December 2015, 25 TXLC remained in operation, but this figure dropped to 15 units by January of 2017.[14] TXLC entered Chapter 11 bankruptcy protection along with Lone Star in February of 2017.[16][2] The company claimed that the remaining restaurants were sold to a new owner on July 31st, 2017, and for that reason any gift cards were no longer being honored.[17] The bankruptcy converted to Chapter 7 in September of 2017, and the case continues to this day.[2]

As of July 2019, the Texas Land & Cattle website lists 3 open locations, although one of them has reportedly permanently closed.[31][32]

Lone Star Steakhouse & Saloon Australia

Lone Star Steakhouse & Saloon first opened in Australia, at Parramatta in January 1993 after acquiring the naming rights from a Melbourne-based franchise of the same name.

Over the next seven and a half years, Lone Star expanded to 21 stores across Australia. However, following an August 2000 business review of its operations Lone Star shut down 10 stores across Australia.

On December 22, 2003, the American parent sold the 11 remaining Lone Star Restaurants operating in New South Wales, Victoria and Queensland to Robert LaPointe and Tim Smith.

In April 2010, Outback Jacks Bar & Grill purchased all five New South Wales-based restaurants, intending to rebrand them once franchisees were found.[33]

On 1 July 2011, Lone Star Steakhouse announced that they would close all Queensland stores immediately.

In September 2017 the rebranded Lone Star Rib House opened a store in North Lakes shopping centre in Brisbane's north adding to its other stores in Mackay, Springfield and the Gold coast. Tossing your free peanut shells on the floor has also made a comeback.

In late 2011, Outback Steakhouse added the former Lone Star site of Penrith to its growing list of restaurants after extensive remodelling.

In October 2011, the original Parramatta store closed its doors.

References

  1. ^ a b c d e f g h i j k l m n o p q r s "Funding Universe Company Profile". Retrieved 2012-08-07.
  2. ^ a b c d e "Texas Eastern Bankruptcy Court Case 4:17-bk-40297 - TX. C. C., Inc. | Inforuptcy". www.inforuptcy.com. Retrieved 2019-08-21.
  3. ^ Rick McCrabb, Staff Writer. "Lone Star speaks out on decision to close Middletown restaurant". journal-news. Retrieved 2019-08-25.
  4. ^ Guy, Bobby. "The Last Lone Star Steakhouse in Michigan Has Closed". K102.5 - Kalamazoo's Greatest Hits. Retrieved 2019-08-25.
  5. ^ Kropp, Bruce (2019-03-11). "Lone Star Steak House closes in Mt. Vernon". WJBD-FM. Retrieved 2019-08-25.
  6. ^ staff, WLOS (2018-07-10). "Arden steakhouse shuts its doors". WLOS. Retrieved 2019-08-25.
  7. ^ a b "Lonestar Steakhouse - Tamuning, Guam". Yelp. Retrieved 2019-08-19.
  8. ^ "Lone Star Steakhouse - Knightdale, NC". Yelp. Retrieved 2019-08-21.
  9. ^ "Lone Star Steakhouse Agrees to Be Acquired". Los Angeles Times. 2006-08-19. ISSN 0458-3035. Retrieved 2019-07-16.
  10. ^ TheDealBlogs Archived 2006-12-18 at the Wayback Machine — The Deal Blogs Network
  11. ^ "Major Stakeholder Opposed to Lone Star Steakhouse Merger". November 6, 2006. Retrieved 2017-08-12.
  12. ^ Horovitz, Bruce (2009-02-10). "As Economy Worsens, Restaurants Suffer". ABC News. Retrieved 2019-08-23.
  13. ^ Liddle, Alan (2010-09-16). "Report: Lone Star Steakhouse closes 19 units". Nation's Restaurant News. Retrieved 2019-08-23.
  14. ^ a b c d e Ruggless, Ron (January 26, 2017). "Report: Lone Star, Texas Land & Cattle close units". Nation's Restaurant News. Retrieved March 3, 2019.
  15. ^ Brasier, John (2017-05-15). "Vacant Triad steakhouse purchased; 'likely' to reopen as another restaurant". Triad Business Journal. Retrieved 2019-07-16.
  16. ^ a b "Company Bankruptcy Information for TX. C. C., Inc". businessbankruptcies.com. Retrieved 2019-08-21.
  17. ^ a b "Lone Star Steakhouse photos". Yelp. Retrieved 2019-08-21.
  18. ^ Kropp, Bruce (2019-03-11). "Lone Star Steak House closes in Mt. Vernon". WJBD-FM. Retrieved 2019-07-16.
  19. ^ Guy, Bobby. "The Last Lone Star Steakhouse in Michigan Has Closed". K102.5 - Kalamazoo's Greatest Hits. Retrieved 2019-07-16.
  20. ^ staff, WLOS (2018-07-10). "Arden steakhouse shuts its doors". WLOS. Retrieved 2019-07-16.
  21. ^ McCrabb, Rick. "Lone Star speaks out on decision to close Middletown restaurant". journal-news. Retrieved 2019-07-16.
  22. ^ "Locations ~ Sullivan's Steakhouse". Sullivan's Steakhouse. 2011-12-09. Archived from the original on 2011-12-09. Retrieved 2019-07-22.
  23. ^ a b "Del Frisco's Restaurant Group Announces Closing of Initial Public Offering". DFRG. 2012-08-01. Retrieved 2019-07-22.
  24. ^ Chaudhury, Nadia (2017-12-28). "Downtown Austin Steakhouse Is Closing". Eater Austin. Retrieved 2019-07-22.
  25. ^ "Del Frisco's to sell Sullivan's Steakhouse to Romano's Macaroni Grill". Nation's Restaurant News. 2018-09-18. Retrieved 2019-07-22.
  26. ^ "Location Search | Sullivan's Steakhouse". Sullivan's Steakhouse. 2019-07-15. Archived from the original on 2019-07-15. Retrieved 2019-07-22.
  27. ^ "About Us". Del Frisco's Double Eagle Steakhouse. Retrieved 2019-07-22.
  28. ^ "Location Search". Del Frisco's Grille. Retrieved 2019-07-22.
  29. ^ "Locations Search". Del Frisco's Double Eagle Steakhouse. Retrieved 2019-07-22.
  30. ^ "The Steak Company". web.archive.org. 2002-11-14. Archived from the original on 2002-11-14. Retrieved 2019-07-22.
  31. ^ "Homepage". TXLC.com. Retrieved 2019-07-16.
  32. ^ "Texas Land & Cattle - CLOSED - Austin, TX". Yelp. Retrieved 2019-07-16.
  33. ^ Outback Jacks takes over Lone Star in Sydney

External links

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