Redstone American Grill
Encyclopedia
Redstone American Grill is a restaurant chain with locations in several the U.S. states. The company is positioned between upscale restaurants and more casual chains such as T.G.I. Fridays. The company was founded by Dean Vlahos in 1999 and the first location opened six months later in Minnetonka, Minnesota
in September 1999.
chain, founded Redstone American Grill in 1999 in the city of Wayzata, Minnesota
. The initial restaurant, which opened several months later in September 1999 in Minnetonka, Minnesota
, generated strong sales. By 2008 the chain had grown to five locations in four states with a sixth in the planning stages. Revenues exceed those of most competitors. Single store sales averaged US$6.7 million annually in 2004, and chain-wide sales exceed $30 million annually. The target customer includes upscale professionals in upper middle class affluent sub-urban areas. The restaurants are modeled after other upscale
chains Houstons and Bandera Grill and feature open spaces around a central bar and an open kitchen with a wood-burning grill and rotisserie
.
restaurant that features steak, chicken, pork and fish cooked on a wood fired grill
. Zagat Survey reviews of the fare are mostly positive, with one commenter stating it had an "Interesting menu including very expensive steaks to reasonably priced chicken and ribs... Restaurant Review magazine gave the chain high marks in quality and taste for its entree
s and appetizers.
, the CEO of Petters Group Worldwide and a friend of Valhos, was a minority stake holder with 16% of the company. He was arrested in late 2007 by federal officials on charges he was running a US$3 billion Ponzi scheme
. While not affecting the company's operations, Petters scheme severely affected the personal fortune of Valhos and hurt Redstone's standing in the finical community and complicated a company reorganization occurring at the same time. Company CEO David Goronkin issued a statement about the issue in which he denied that reorganization was caused by the charges; “It does not involve Redstone whatsoever,” he said. “Redstone is reorganizing because of the dry-up of the credit market. It has nothing to do with Petters. … I will continue to build Redstones and I’ll continue to do other projects. We’ll move forward.”
However, the damage to the company's reputation accompanied by the 2008-2009 recession has put dampeners on Redstone's expansion plans. GE Capital
, a major source of funding for a planned 200-300 unit expansion, pulled a promised $10 million loan, while Gronkin resigned from his position as CEO. In all the company's sales declined 2.2% in 2008, primarily due to recessionary pressures on its prime clientele base of the sub-urban professional. Analysts are however positive on the loss, noting that comparable chains such as Morton's Restaurant Group
and McCormick & Schmick's
have seen losses in the 10-15% range. One such observer noted that the chain's sixth location in Chevy Chase, Maryland
should open on schedule and a seventh location in the planning stages should find little difficulty in coming to fruition.
Minnetonka, Minnesota
As of the census of 2000, there were 51,301 people, 21,393 households, and 14,097 families residing in the city. The population density was 1,893.0 persons per square mile . There were 22,228 housing units at an average density of 818.9 per square mile...
in September 1999.
History
Dean Vlahos, founder of the Champps Restaurant & BarChampps
Champps Americana is an American casual dining restaurant chain and sports bar. There are over 60 locations across the United States, with most of them on the East Coast and Midwest.-History:...
chain, founded Redstone American Grill in 1999 in the city of Wayzata, Minnesota
Wayzata, Minnesota
Wayzata is a city in Hennepin County, Minnesota, United States, a western suburb of Minneapolis. Wayzata came into existence in the center of Chief Shakopee's Indian village.-Early settlement:...
. The initial restaurant, which opened several months later in September 1999 in Minnetonka, Minnesota
Minnetonka, Minnesota
As of the census of 2000, there were 51,301 people, 21,393 households, and 14,097 families residing in the city. The population density was 1,893.0 persons per square mile . There were 22,228 housing units at an average density of 818.9 per square mile...
, generated strong sales. By 2008 the chain had grown to five locations in four states with a sixth in the planning stages. Revenues exceed those of most competitors. Single store sales averaged US$6.7 million annually in 2004, and chain-wide sales exceed $30 million annually. The target customer includes upscale professionals in upper middle class affluent sub-urban areas. The restaurants are modeled after other upscale
Luxury good
Luxury goods are products and services that are not considered essential and associated with affluence.The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies...
chains Houstons and Bandera Grill and feature open spaces around a central bar and an open kitchen with a wood-burning grill and rotisserie
Rotisserie
Rotisserie is a style of roasting where meat is skewered on a spit - a long solid rod used to hold food while it is being cooked over a fire in a fireplace or over a campfire, or roasted in an oven. This method is generally used for cooking large joints of meat or entire animals, such as pigs,...
.
Menu
The company markets itself as a high end barbecueBarbecue
Barbecue or barbeque , used chiefly in the United States, Canada, the United Kingdom, New Zealand and Australia is a method and apparatus for cooking meat, poultry and occasionally fish with the heat and hot smoke of a fire, smoking wood, or hot coals of...
restaurant that features steak, chicken, pork and fish cooked on a wood fired grill
Wood-fired oven
Wood-fired ovens, also known as wood ovens , are ovens that use wood fuel for cooking. There are two types of wood-fired ovens: "black ovens" and "white ovens"...
. Zagat Survey reviews of the fare are mostly positive, with one commenter stating it had an "Interesting menu including very expensive steaks to reasonably priced chicken and ribs... Restaurant Review magazine gave the chain high marks in quality and taste for its entree
Entrée
An entrée is a dish served before the main course, or between two principal courses of a meal.The disappearance in the early 20th century of a large communal main course such as a roast as a standard part of the meal in the English-speaking world has led to the term being used to describe the main...
s and appetizers.
Tom Petters
Tom PettersTom Petters
Thomas Joseph Petters is an American business man and the former CEO and chairman of Petters Group Worldwide. Petters resigned his position as CEO on September 29, 2008, amid mounting criminal investigations...
, the CEO of Petters Group Worldwide and a friend of Valhos, was a minority stake holder with 16% of the company. He was arrested in late 2007 by federal officials on charges he was running a US$3 billion Ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
. While not affecting the company's operations, Petters scheme severely affected the personal fortune of Valhos and hurt Redstone's standing in the finical community and complicated a company reorganization occurring at the same time. Company CEO David Goronkin issued a statement about the issue in which he denied that reorganization was caused by the charges; “It does not involve Redstone whatsoever,” he said. “Redstone is reorganizing because of the dry-up of the credit market. It has nothing to do with Petters. … I will continue to build Redstones and I’ll continue to do other projects. We’ll move forward.”
However, the damage to the company's reputation accompanied by the 2008-2009 recession has put dampeners on Redstone's expansion plans. GE Capital
GE Capital
GE Capital is the financial services unit of General Electric, one of five major units. Its various divisions include GE Capital Aviation Services, GE Capital Real Estate, GE Energy Financial Services and GE Money....
, a major source of funding for a planned 200-300 unit expansion, pulled a promised $10 million loan, while Gronkin resigned from his position as CEO. In all the company's sales declined 2.2% in 2008, primarily due to recessionary pressures on its prime clientele base of the sub-urban professional. Analysts are however positive on the loss, noting that comparable chains such as Morton's Restaurant Group
Morton's Restaurant Group
Morton's Restaurant Group, Inc. is the world's largest owner and operator of company-owned upscale restaurants, with locations in the United States, Canada, Mexico, Puerto Rico, Hong Kong, Macau, Shanghai and Singapore...
and McCormick & Schmick's
McCormick & Schmick's
McCormick & Schmick's Seafood Restaurants is an American seafood restaurant chain, based in Portland, Oregon. Founded in 1979, the publicly-traded company operates a total of 92 locations in North America under various brands. This includes seven Canadian locations that operate under the Boathouse...
have seen losses in the 10-15% range. One such observer noted that the chain's sixth location in Chevy Chase, Maryland
Chevy Chase, Maryland
Chevy Chase is the name of both a town and an unincorporated census-designated place in Montgomery County, Maryland. In addition, a number of villages in the same area of Montgomery County include "Chevy Chase" in their names...
should open on schedule and a seventh location in the planning stages should find little difficulty in coming to fruition.