by Ed Sealover
September 16, 2011
Sizzler, the once-iconic steak restaurant chain that filed for bankruptcy protection and closed the majority of its restaurants in the mid-1990s, is looking to make a comeback — and it wants to start its expansion in Colorado.
Kerry Kramp, president/CEO of Sizzler USA , said the Culver City, Calif.-based private restaurant chain has begun talking to potential franchisees and looking at vacant restaurant properties in the Denver area, and it plans to open eight restaurants in this market within five years.
The majority of Sizzler restaurants are sprinkled throughout the West Coast, Utah and Idaho, and Colorado would be a logical next location for an eastward expansion, he said.
If all goes well, the first new Sizzler in Colorado in 15 years could open in mid- to late 2012, Kramp said.
“Outside of the California marketplace, Colorado is our first look,” Kramp said. “If we can find a city that is really excited about having a Sizzler back in the community or if we could find a franchisee that is really excited, it could happen quicker.”
Sizzler became well-known in the 1980s for offering steaks as well as buffets for cost-conscious diners. At its peak, the company had more than 700 locations and was worth more than $1 billion.
But several buffet chains that came with more space in their restaurants and more offerings on their menus moved in on its market in the early 1990s, and Sizzler quickly ran into financial trouble. After its 1996 bankruptcy filing, it closed its three Denver-area locations in Arvada, Lakewood and Littleton. There are now 175 Sizzler locations across the country.
Kramp, a former executive with competitor HomeTown Buffet, took over as Sizzler CEO in 2008, and said the company needed to get back to its roots of fresh-made food and a big salad bar. The company stopped franchising while it looked at how it could improve. Two months ago, the newly formed management group Sizzler USA purchased the restaurant chain from Australian firm Pacific Equity Partners.
Sizzler officials have phased out the buffets and concentrated on hand-cut steaks and fresh seafood. They also have begun updating the look of the facilities, adding poplar woods and more contemporary fabrics. And they’ve added interactive kiosks and put the restaurant on Facebook in order to appeal to a younger demographic, Kramp said.
“It’s no longer just a place where seniors come looking for an incredible value,” Kramp said. “We’ve broadened the menu to include blue- and white-collar families, younger people.”
Sizzler has reported three consecutive years of same-store sales growth. Its annual sales are about $340 million.
The interest in Denver stems back to Kramp’s days with HomeTown Buffet, when he noticed that Denver’s population and demographics fit perfectly with a moderately priced steak restaurant’s target audience. Plus, he’s familiar with the Denver market, he said.
Sizzler is looking at buildings vacated by other restaurants for possible Denver-area locations, Kramp said. They hope to identify the first location in six to nine months, he said.
Though Sizzler is largely a memory to most people in the Denver area, Kramp believes it carries a certain value that still keeps it fresh in their minds. He noted that the cast of the reality TV show “Jersey Shore” had a party at a Sizzler not long ago, and an episode of the animated show “South Park” also mentioned the chain recently.
“The iconicness of the brand is special,” Kramp said, adding that he believes that will help with its future success.
