Centerra stirs the culinary pot with new chain eateries

LOVELAND – There has been much weeping and gnashing of teeth that the magnetic force of the Promenade Shops at Centerra will attract all the disposable income floating around Northern Colorado. But in the realm of restaurants, perhaps that should read more like whooping and noshing of teeth: Where food rules, culinary challenges – both high and low – are welcome.

The center’s strategic mix of restaurants is one part Colorado-based to seven parts national chains, from the reliable Red Robin and Charlie’s Grilled Subs to the stylish P.F. Chang’s and upscale Sullivan’s Steak House. Red Robin was the only one serving for the grand opening in October.

What all these chains have in common are proven profitability, aggressive expansion and sufficient capital to settle into a retail center where space costs about $30 per square foot for starters. Each lease is, of course, individually negotiated, and the terms are closely held.

As a point of reference for the stunning growth enjoyed by chains in recent years, P.F. Chang’s enjoyed revenue growth of 36 percent in the fourth quarter of 2004. Revenues for the first three quarters of 2005 have grown by 18, 17 and 17 percent respectively.

Terry McEwen, president of Poag & McEwen, acknowledged that tenants at Centerra must do well to pay the rent.

The principal strategy in putting together a restaurant mix has been to provide a variety of eating experiences with price points that parallel the retail and entertainment offerings.

“We have two levels of steak house to cover that market,” he said. “There are enough other choices so that people can come for dinner and a movie, and if the line is too long at one place, then there is another one around the corner.”

Running with the big dogs

So how does a homegrown Colorado operation fit among the high-profile chains? Nicely. The Bent Fork American Grill will open in the spring right next to the ice rink.

“If you want to run with the big dogs, you have to be ready to put it all on the line,´ said John Long, who with his partners John Tetrault and Mike Smith started a company called 33 and a Third LLC to develop restaurants. “We are friends from college, but got together in 2002 to put together our individual experiences in the restaurant business.”

Both Long and Smith came up through the ranks, starting by busing and waiting tables. Together they have 70 years of experience in the business, with Smith having been a vice president of Chili’s.

“I’m the food guy and Mike is the numbers guy. John has the ‘branding’ experience, so he’s the branding guy,” Long said. “John and his dad developed the idea that eventually became PetsMart. He has also had extensive experience with Con Agra.”

The Bent Fork American Grill, the first of four concepts that the partners have in the works, has been successful in its Aurora location, ranking high in the online Denver City Search reviews.  Its menu items, which range from burgers to pasta to fish to meat, are all priced under $20 (the same as the chains).

“We got a ’10’ for American food and almost as high for comfort food and hamburgers from City Search,” Long said. “So we are doing well. The problem is that there was not enough foot traffic in the Aurora location. At the Promenade, we will be right off the ice rink.”

McEwen added that The Bent Fork may have one of the best restaurant locations in the center.

“It’s close to a place where people congregate,” he said. “The fire pit is there, and in the summer the ice-skating rink will become an amphitheater.”

Although the partners are wholly focused on The Bent Fork right now, they are not immune to the charms of the franchise.

“We’ve bought the Northern Colorado rights to Wing Stop, and are also working on Johnny Mananas and the Chow Market Café,” Long said. “We need to think about the right locations for them.”

Meanwhile, along the Harmony Corridor

At approximately the same moment that Promenade Shops at Centerra was lighting up an entire highway intersection, Somi Palmer (owner), Tobi Bean (executive chef) and Alan Biscomb (general manager) opened the doors to Somi’s, an all-new restaurant in what once was Mulligan’s Food and Ale on Harmony Road.

“The three of us met when we were working at the Moot House,” Biscomb said. “We began doing some catering together, and one of our clients was Jay Stoner, who bought this building in August. He had no interest in running a restaurant, so we put together a business plan, found the financing and opened the first of November.”

Biscomb pointed out that location was certainly not one of the reasons that Mulligan’s closed its doors.

“Harmony is a prime retail location. We’re on the busiest road in Fort Collins, and all the major employers are located within three miles of us,” he said. “We will focus lunch locally and focus our dinner menu for a regional draw. This is not an every-night kind of restaurant.”

Jane D. Albritton is a contributing writer for the Northern Colorado Business Report.   Her monthly column features restaurant and hospitality industry news. She can be contacted at jane@tigerworks.com.

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