K-Bob's Steakhouse
Encyclopedia
K-Bob’s Steakhouse is a regional restaurant
chain that operates in the cattle
country of Texas
and New Mexico
. Founded in 1966 in Clovis
, New Mexico, by Gabe E. Parson (born 1938), the company sought Chapter 11 bankruptcy
in 1989, and reopened in 1991 under the ownership and management of Edward Roy Tinsley III
(born ca. 1952), who relocated company headquarters from Dallas to Albuquerque
, and then Santa Fe
.
is the way I describe it ... They took on almost every fad they possibly could."
At one point during the 1980s, there were nearly a hundred K-Bob's restaurants. There was a lack of cohesion among the franchise
es, most of whom had never met one another or had the opportunity to exchange ideas. The company then "made decisions that appeared successful until economic times got tougher. They were working in the boom time, but when it ended, tough mistakes began to haunt them", said Tinsley in a 1992 interview with Robin Lee Allen of Nation’s Restaurant News.
According to the Dallas attorney Robert M. Nicoud, Jr., who represented K-Bob's, Inc., in bankruptcy court
, the company "overexpanded and found itself in a position where it had to do whatever it could to keep cash coming in the door to keep operations going ... Eventually, they were carrying too heavy a debt load, and the general economy just turned around on them."
In October 1989, K-Bob's, Inc. filed for Chapter 11 from more than a hundred creditors. According to court papers, the company owed more than $38,000 to secured creditors, including the Internal Revenue Service
, and $2.2 million to unsecured creditors, some of which were disputed. "I'm not sure the case would have gone anywhere if Tinsley had not come along", said Nicoud.
A native of Lamesa
, the seat of Dawson County south of Lubbock
in West Texas
, Tinsley retains memories of the role of K-Bob's in smaller towns, where "It was the school, the church and K-Bob's." Before acquiring K-Bob’s, Tinsley had been since 1978 a territory franchisee for Schlotzsky's
, an Austin
-based sandwich and soup chain. He also owned a food-processing and distribution company known as Sun Country Honey. A graduate in accounting from The University of Texas at Austin
and in law
from Texas Tech University
, Tinsley, an attorney, has ranching, petroleum
and natural gas
interests in Lincoln County
, New Mexico.
In April 1991, after a year of negotiations, the bankruptcy court transferred the assets of K-Bob's, Inc., to K-Bob's USA, Inc. The latter was required to pay debts to the former over a 10-year period. Since the purchase, Tinsley has concentrated on the roots of his company: He personally met his franchisees and launched a monthly corporate newsletter called The T-Bone Tribune.
When the federal minimum wage
increased in 1997 from $4.75 to $5.15 per hour, The Wall Street Journal
reported that Tinsley had prepared for the additional expense by selectively raising menu prices.
, New Mexico, which was used to test promotions and new marketing ideas before they were passed to the franchisees. The outlet in Socorro
has launched an innovation, the "BBT Hideway" bar, named for Tinsley’s Hollywood
friend Billy Bob Thornton
.
Tinsley is the owner of Tinsley Hospitality Group, the master franchisor of K-Bob’s. The chief operating officer, Michael W. Myers, is a former president of the Back Yard Burgers, Inc.
, chain. Myers has also been associated with the MCap Restaurant Group and Whataburger, Inc.
From 1999-2006, he was president and chief operating officer of Backyard Burgers.
K-Bob’s locations include Brenham
, Childress
, Corpus Christi
, Dimmitt
, Dumas
, Fort Stockton
, Hereford
, and Lamesa. A former location in Amarillo
is now closed. The New Mexico locations are Clovis, Las Vegas
, Raton
, Ruidoso
, Socorro, and Tucumcari
. The Oklahoma
location is in Woodward
, and the only Colorado
site is Cañon City
.
From 2006 to 2007, Tinsley served as president of the National Restaurant Association
. A Republican
, he ran unsuccessfully in 2002 and 2008 for the United States House of Representatives
from the 2nd congressional district of New Mexico. After the latter campaign, Tinsley indicated that he would seek to expand K-Bob's franchises during 2009. The company grew during 2008 by 5 percent.
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
chain that operates in the cattle
Cattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
country of Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
and New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
. Founded in 1966 in Clovis
Clovis, New Mexico
Clovis is the county seat of Curry County, New Mexico, United States. Its population was 32,667 at the 2000 census; according to 2010 Census Bureau estimates, the population had risen to 37,775....
, New Mexico, by Gabe E. Parson (born 1938), the company sought Chapter 11 bankruptcy
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
in 1989, and reopened in 1991 under the ownership and management of Edward Roy Tinsley III
Edward R. Tinsley
Edward Roy Tinsley, III , is an attorney, rancher, and businessman with interests in oil, natural gas, and restaurants who has twice failed in Republican bids for the United States House of Representatives from the 2nd congressional district of his adopted state of New Mexico...
(born ca. 1952), who relocated company headquarters from Dallas to Albuquerque
Albuquerque, New Mexico
Albuquerque is the largest city in the state of New Mexico, United States. It is the county seat of Bernalillo County and is situated in the central part of the state, straddling the Rio Grande. The city population was 545,852 as of the 2010 Census and ranks as the 32nd-largest city in the U.S. As...
, and then Santa Fe
Santa Fe, New Mexico
Santa Fe is the capital of the U.S. state of New Mexico. It is the fourth-largest city in the state and is the seat of . Santa Fe had a population of 67,947 in the 2010 census...
.
Up from bankruptcy
In the late 1970s, an investor group purchased K-Bob’s. The new management team of Luther Lyle Walker and Robert E. Cotton, moved from the original focus of simple buffet-style, reasonably priced family foods to a more metropolitan fare. According to Vernon P. O’Rourke, then the vice-president of two K-Bob's in Texas, Walker and Cotton "went yuppyishYuppie
Yuppie is a term that refers to a member of the upper middle class or upper class in their 20s or 30s. It first came into use in the early-1980s and largely faded from American popular culture in the late-1980s, due to the 1987 stock market crash and the early 1990s recession...
is the way I describe it ... They took on almost every fad they possibly could."
At one point during the 1980s, there were nearly a hundred K-Bob's restaurants. There was a lack of cohesion among the franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
es, most of whom had never met one another or had the opportunity to exchange ideas. The company then "made decisions that appeared successful until economic times got tougher. They were working in the boom time, but when it ended, tough mistakes began to haunt them", said Tinsley in a 1992 interview with Robin Lee Allen of Nation’s Restaurant News.
According to the Dallas attorney Robert M. Nicoud, Jr., who represented K-Bob's, Inc., in bankruptcy court
United States bankruptcy court
United States bankruptcy courts are courts created under Article I of the United States Constitution. They function as units of the district courts and have subject-matter jurisdiction over bankruptcy cases. The federal district courts have original and exclusive jurisdiction over all cases arising...
, the company "overexpanded and found itself in a position where it had to do whatever it could to keep cash coming in the door to keep operations going ... Eventually, they were carrying too heavy a debt load, and the general economy just turned around on them."
In October 1989, K-Bob's, Inc. filed for Chapter 11 from more than a hundred creditors. According to court papers, the company owed more than $38,000 to secured creditors, including the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
, and $2.2 million to unsecured creditors, some of which were disputed. "I'm not sure the case would have gone anywhere if Tinsley had not come along", said Nicoud.
A native of Lamesa
Lamesa, Texas
Lamesa is a city in and the county seat of Dawson County, Texas, United States. The population was 9,952 at the 2000 census. Located south of Lubbock on the Llano Estacado, Lamesa was founded in 1903. Most of the economy is based on cattle ranching and cotton farming. The Preston E...
, the seat of Dawson County south of Lubbock
Lubbock, Texas
Lubbock is a city in and the county seat of Lubbock County, Texas, United States. The city is located in the northwestern part of the state, a region known historically as the Llano Estacado, and the home of Texas Tech University and Lubbock Christian University...
in West Texas
West Texas
West Texas is a vernacular term applied to a region in the southwestern quadrant of the United States that primarily encompasses the arid and semi-arid lands in the western portion of the state of Texas....
, Tinsley retains memories of the role of K-Bob's in smaller towns, where "It was the school, the church and K-Bob's." Before acquiring K-Bob’s, Tinsley had been since 1978 a territory franchisee for Schlotzsky's
Schlotzsky's
Schlotzsky's is a privately held franchise chain of restaurants, specializing in sandwiches, headquartered in Downtown Austin, Texas. Schlotzsky's has more than 350 franchised and company-owned locations worldwide...
, an Austin
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
-based sandwich and soup chain. He also owned a food-processing and distribution company known as Sun Country Honey. A graduate in accounting from The University of Texas at Austin
University of Texas at Austin
The University of Texas at Austin is a state research university located in Austin, Texas, USA, and is the flagship institution of the The University of Texas System. Founded in 1883, its campus is located approximately from the Texas State Capitol in Austin...
and in law
Juris Doctor
Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...
from Texas Tech University
Texas Tech University School of Law
The Texas Tech University School of Law is an ABA-accredited law school located on the campus of Texas Tech University in Lubbock, Texas. Known nationally for their continual success in trial advocacy competitions, the school focuses on forming practical lawyers who are ready to practice law upon...
, Tinsley, an attorney, has ranching, petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
interests in Lincoln County
Lincoln County, New Mexico
-2010:Whereas according to the 2010 U.S. Census Bureau:*85.1% White*0.5% Black*2.4% Native American*0.4% Asian*0.0% Native Hawaiian or Pacific Islander*2.5% Two or more races*9.1% Other races*29.8% Hispanic or Latino -2000:...
, New Mexico.
In April 1991, after a year of negotiations, the bankruptcy court transferred the assets of K-Bob's, Inc., to K-Bob's USA, Inc. The latter was required to pay debts to the former over a 10-year period. Since the purchase, Tinsley has concentrated on the roots of his company: He personally met his franchisees and launched a monthly corporate newsletter called The T-Bone Tribune.
When the federal minimum wage
Minimum wage in the United States
, the federal minimum wage in the United States is $7.25 per hour. Some states and municipalities have set minimum wages higher than the federal level , with the highest state minimum wage being $8.67 in Washington. Some U.S. territories are exempt...
increased in 1997 from $4.75 to $5.15 per hour, The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
reported that Tinsley had prepared for the additional expense by selectively raising menu prices.
K-Bob’s today
The K-Bob’s menu features steaks, chicken, chicken-fried steak, catfish, vegetables, and salads. At one point, the company owned only one franchise, the since closed outlet in Truth or ConsequencesTruth or Consequences, New Mexico
Truth or Consequences is a spa city and the county seat of Sierra County, New Mexico, United States. As of the 2000 census, the population was 7,289. It is commonly known within New Mexico as T or C....
, New Mexico, which was used to test promotions and new marketing ideas before they were passed to the franchisees. The outlet in Socorro
Socorro, New Mexico
Socorro is a city in Socorro County in the U.S. state of New Mexico. It stands in the Rio Grande Valley at an elevation of . The population was 9,051 at the 2010 census...
has launched an innovation, the "BBT Hideway" bar, named for Tinsley’s Hollywood
Cinema of the United States
The cinema of the United States, also known as Hollywood, has had a profound effect on cinema across the world since the early 20th century. Its history is sometimes separated into four main periods: the silent film era, classical Hollywood cinema, New Hollywood, and the contemporary period...
friend Billy Bob Thornton
Billy Bob Thornton
Billy Bob Thornton is an American actor, screenwriter, director and musician. Thornton gained early recognition as a cast member on the CBS sitcom Hearts Afire and in several early 1990s films including On Deadly Ground and Tombstone...
.
Tinsley is the owner of Tinsley Hospitality Group, the master franchisor of K-Bob’s. The chief operating officer, Michael W. Myers, is a former president of the Back Yard Burgers, Inc.
Back Yard Burgers
Back Yard Burgers is a regional franchise chain of quick serve restaurants. Its headquarters is located in Nashville, Tennessee. As of August 2008, there are 171 Back Yard Burgers locations in 20 states throughout the Southern and Midwestern United States, chiefly in Tennessee and...
, chain. Myers has also been associated with the MCap Restaurant Group and Whataburger, Inc.
Whataburger
Whataburger is a privately held, regional restaurant chain specializing in hamburgers. The company, founded by Harmon Dobson, opened its first restaurant in Corpus Christi, Texas in 1950...
From 1999-2006, he was president and chief operating officer of Backyard Burgers.
K-Bob’s locations include Brenham
Brenham, Texas
Brenham is a city in east-central Texas in Washington County, Texas, United States, with a population of 16,147 according to the 2009 census. It is the county seat of Washington County...
, Childress
Childress, Texas
Childress is a city in Childress County, Texas, United States. The population was 6,778 at the 2000 census. It is the county seat of Childress County. Like the county, the city is named for George Campbell Childress, a native of Nashville, Tennessee, who was the principal author of the Texas...
, Corpus Christi
Corpus Christi, Texas
Corpus Christi is a coastal city in the South Texas region of the U.S. state of Texas. The county seat of Nueces County, it also extends into Aransas, Kleberg, and San Patricio counties. The MSA population in 2008 was 416,376. The population was 305,215 at the 2010 census making it the...
, Dimmitt
Dimmitt, Texas
Dimmitt is a city in Castro County, Texas, United States. The population was 4,375 at the 2000 census. It is the county seat of Castro County. It is located on the old Ozark Trail, a road system from St. Louis, Missouri, to El Paso, Texas...
, Dumas
Dumas, Texas
Dumas is a city in Moore County, Texas, United States. The population was 13,747 at the 2000 census. It is the county seat of Moore County. Located approximately fifty miles north of Amarillo, the city is named for...
, Fort Stockton
Fort Stockton, Texas
Fort Stockton is a city in Pecos County, Texas, United States. The population was 7,846 at the 2000 census. It is the county seat of Pecos County.-Geography:Fort Stockton is located at ....
, Hereford
Hereford, Texas
Hereford is a city in Deaf Smith County, Texas, United States. The population was 14,597 at the 2000 census. It is the only incorporated Hereford in the country. It is the county seat of Deaf Smith County....
, and Lamesa. A former location in Amarillo
Amarillo, Texas
Amarillo is the 14th-largest city, by population, in the state of Texas, the largest in the Texas Panhandle, and the seat of Potter County. A portion of the city extends into Randall County. The population was 190,695 at the 2010 census...
is now closed. The New Mexico locations are Clovis, Las Vegas
Las Vegas, New Mexico
Las Vegas is a city in San Miguel County, New Mexico, United States. Once two separate municipalities both named Las Vegas, west Las Vegas and east Las Vegas , divided by the Gallinas River, retain distinct characters and separate, rival school districts. The population was 14,565 at the 2000...
, Raton
Raton, New Mexico
Raton is a city in Colfax County, New Mexico, United States. The population was 7,282 at the 2000 census. It is the county seat of Colfax County. The city is located just south of Raton Pass.-Name:...
, Ruidoso
Ruidoso, New Mexico
Ruidoso is a village in Lincoln County, New Mexico, United States, adjacent to the Lincoln National Forest. The population was 8,029 at the 2010 census...
, Socorro, and Tucumcari
Tucumcari, New Mexico
Tucumcari is a city in and the county seat of Quay County, New Mexico, United States. The population was 5,989 at the 2000 census. Tucumcari was founded in 1901, two years before Quay County was founded.-History:...
. The Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
location is in Woodward
Woodward, Oklahoma
Woodward is a city in and the county seat of Woodward County, Oklahoma, United States. It is the largest city in a nine-county area. The population was 12,051 at the 2010 census....
, and the only Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
site is Cañon City
Cañon City, Colorado
The City of Cañon City is a Home Rule Municipality that is the county seat and the most populous city of Fremont County, State of Colorado. The United States Census Bureau estimated that the city population was 16,000 in 2005. Cañon City is noted for being the location of nine state and four ...
.
From 2006 to 2007, Tinsley served as president of the National Restaurant Association
National Restaurant Association
thumb|National Restaurant Association logoThe National Restaurant Association is a restaurant industry business association in the United States, representing more than 380,000 restaurant locations. It also operates the National Restaurant Association Educational Foundation...
. A Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
, he ran unsuccessfully in 2002 and 2008 for the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
from the 2nd congressional district of New Mexico. After the latter campaign, Tinsley indicated that he would seek to expand K-Bob's franchises during 2009. The company grew during 2008 by 5 percent.