Houlihan’s Goes "Tres Chic," Launches Franchise Expansion
May 26, 2007 by Sean Kelly
Filed under Business
Some casual dining franchise chains have yet to get the word that the 80’s are over. Dead. Kaput. Finis. Houlihan’s, it seems, has gotten both the message and the funding to do something about it.
According to the Kansas City Star, Houlihan’s Restaurants Inc., is flush with $68 million to spend and is embarking on the next phase of a national expansion that will add 12 new locations by year end… and a new prototype one investor calls tres chic.
See the whole article at: More locations on menu for Houlihans
Here are the highlights:
Houlihan’s has 30 company-owned restaurants in some phase of development. Some of those are in new markets, including San Antonio, Dallas, Charlotte, N.C., and Denver.
Houlihan’s is reaching out to franchise developers that can build out entire markets. By year end, the company, which is expected to do $350 million in sales, will have 115 locations.
Houlihan’s has recently received a two-part equity infusion. It got $28 million in private equity from Goldner Hawn Johnson & Morrison, a Minneapolis-based investment firm, and a new $40 million senior credit facility from Wells Fargo Foothill Restaurant Finance, which Goldner Hawn helped place.
The investment firms are banking on resumed growth and a new Houlihan’s prototype, which they compare to P.F. Chang’s and Target (?) for its “clean, modern lines,” open kitchen, and what one investor calls a “tres chic, cool bar.”
Can’t wait to see the new, tres chic Houlihans. Got to hand it to them for the necessary re-invention. Now if some other casual dining chains could realize that the eighties are TGI-Over…
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Sure hope they improve the food too!
We ate there last Thanksgiving and they have cheapened the ingredients and food prep. They have added lots of salt.
How many Bankruptcies has this company been through? I know of three. In the early 80’s they had over 100 restaurants!
Joe Gilbert the founder was a wonderful person but I am sure he has turned over in his grave many times.
I hope this works for them. My son is going to work for them at a new franchise location in Bloomsburg, PA. He’s pretty impressed with the food. I think they’ve been upgrading the menu and focusing on quality rather than solely food costs.
I haven’t met a customer yet who went to a restaurant because they had a low food cost percentage.
Hope it does too!
The food was so bad last year that we won’t be going back this year!
It’s sad what this chain has been through over the years. I used to sell them supplies.
Gilbert Robinson, then Peter Grace, then Riese (Reese) Bros., then just Houlihan’s after everything else sold off .
Oh, I forgot another name their owners had before the Houlihan’s name only. Creative Restaurant Management.