If a single restaurant in a chain goes out of business, less than a ripple may be felt, but when the entire brand gets blown away, franchisees may have to scramble for cover.
While the long-term future of the Bennigan’s Grill & Tavern casual-dining brand remains in question following parent company S&A Restaurant Corp.’s bankruptcy late last month, Vineland-based franchisee Tower Hospitality is still serving patrons at its Bennigan’s.
“We can put out the current Bennigan’s products without any issue,” says Chris Eppers, chief operating officer for Tower.
Eppers says the closure of Bennigan’s corporate entity came with little warning to franchisees. “I caught the story a little after midnight on the Internet,” he says. An e-mail notice the morning of July 29 confirmed the Chapter 7 bankruptcy filing by S&A, of Plano, Texas. More than 100 company-operated locations shut down nationwide because of the bankruptcy. Calls to eight of the nine New Jersey Bennigan’s restaurants remain unanswered.
Eppers says franchise manager Tower Hospitality immediately put the word out to the public that the Vineland location and its staff of 63 were open for business. Tower Hospitality uses a third-party food distributor to supply its Bennigan’s restaurant. Tower also operates other franchises in southern New Jersey, including Denny’s in Vineland and Northfield, and three hotels in Vineland.
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