First we lose to Vandy, now this?

#1
orangetd88

orangetd88

Agent of Chaos
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#1
UT-area O'Charley's closes
Six locations shut down after disappointing 3Q

By CYNTHIA YELDELL, yeldellc@knews.com
November 23, 2005


O'Charley's has closed its restaurant near the University of Tennessee campus after 18 years on the Cumberland Avenue Strip.
O'Charley's Sports Grill closed Sunday and was one of six underperforming stores the company shut down after a disappointing third quarter.


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Nashville-based O'Charley's Inc. reported a third quarter net loss of $4.7 million compared with net earnings of $4.1 million in last year's third quarter. The company also experienced lost revenue from restaurants affected by Hurricane Katrina.

Sales at stores open at least a year, known as same store sales and considered to be the best indicator of a retailer's health, declined by 1.5 percent during the quarter.

In addition to closing underperforming stores, the company decided to sell a corporate aircraft and scale back expansion plans.

"I am very disappointed by the results for the quarter," Gregory L. Burns, O'Charley's chairman and CEO, said in a statement. "While there were a number of factors beyond our control during the quarter, most notably the disruptions caused by Hurricane Katrina and the impact of higher interest rates and gasoline prices on consumers, we are devoting our efforts to fixing those things that are within our control.

"I have decided to close six unprofitable restaurants that were a distraction to our management," he said.

Company spokeswomen Meg Bayless said the Cumberland Avenue restaurant was the only Tennessee location that closed and stressed the company's commitment to Knoxville.

"Knoxville has been a great success for O'Charley's and it still offers several growth opportunities," she said.

Bayless said factors contributing to the decision to close included past and expected performance and customer traffic patterns.

She said the Cumberland Avenue location was a different concept of the company and was the only O'Charley's Sports Grill the company owned. It had a different look from the other stores and featured more sports memorabilia.

A number of retail businesses have come and gone on the Strip in recent years. A lack of adequate parking and a decline in customers during the summer months when most UT students are away are often cited as reasons.

The Cumberland O'Charley's location had 67 employees and three managers, Bayless said. The company made an effort to relocate those employees to other restaurants and those that cannot be transferred will be offered severance packages, she said.

O'Charley's now has five Knoxville locations at 3050 S. Mall Road near Knoxville Center; 8077 Kingston Pike; 117 Cedar Lane; 11036 Parkside Drive in the Turkey Creek center; and 11820 Kingston Pike, according to the company Web site.

Business writer Cynthia Yeldell may be reached at 865-342-6320.
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http://www.knoxnews.com/kns/business/artic...4260215,00.html
 
#3
#3
O'Charleys food is kind of disappointing for the price versus it's competitors. It surprises me that this one closed however. Seemed like every time I drove by there it was packed. Could have been poorly managed though.
 
#4
#4
Stopped eating there a long time ago. Food is never as good, and the portions are always much smaller than competitors. I guess the hepatitis thing didnt help either.
 
#5
#5
Originally posted by cibai@Nov 23, 2005 6:07 PM
I guess the hepatitis thing didnt help either.
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Well, in my experience the hepatitis portions are much larger and a better value at the Tap Room :biggrin2:
 
#6
#6
The last couple of times I was there it was really bad. The music that was playing seemed more for the staff than the clientel and the service was really bad. Someone will grab it and if they know what they are doing, will turn it into a good place. Stay away from the "sports bar" theme. It is hard to make it work for the long haul.
 
#7
#7
Most of them are crap anyway... I too quit eating at any of those dumps a couple of years ago. Last time, after the normal crappy service and crappy food, the manager came by and asked us how things were. I'm not one to go speak to a manager, but since he asked, I politely told him about the experience, and he said "ok... well, sorry 'bout that" and walked off.

Regarding the one on the strip, I spent (too) many evenings at that place... if it's losing money, it won't be long before the rest of them shut down. That place could stay open on Fri and Sat. only and should do fine. Of course, not many places survive on the strip in the past few years... maybe K-town needs more drinkers???
 
#8
#8
Originally posted by volinbham@Nov 23, 2005 6:15 PM
Well, in my experience the hepatitis portions are much larger and a better value at the Tap Room  :biggrin2:
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Can you say, "Pickled eggs and a Big Gulp?"
 
#9
#9
Originally posted by volinbham@Nov 23, 2005 6:15 PM
Well, in my experience the hepatitis portions are much larger and a better value at the Tap Room  :biggrin2:
[snapback]200629[/snapback]​
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Flashback there, the last time we lost to Vandy I watched the game at the Tap Room. A marriage and two teenagers later we lost to them again.
 
#12
#12
O'Charleys rules... hard to imagine one of those closing. :eek:

'Course, the one in Cookeville hasn't been around for 18 years either.
 
#13
#13
Who goes to O'Charley's on the strip for the food? LOL

That has been my place to party before games for awhile. Oh well...
 
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