Restaurants Break Sales Records ?? Again

In what seems to have become an annual ritual, Fayetteville restaurants once again set all-time sales records for the year.

City tax records indicate Red Lobster brought in $3 million in sales during 1999, more than any other restaurant in Fayetteville history. Close behind Red Lobster was locally owned Jose’s Mexican Restaurant with $2.95 million.

Ryan’s Family Steakhouse ($2.41 million) and Chili’s ($2.34 million) held onto their spots as No. 3 and No. 4, respectively.

Showing the biggest jump in sales for 1999 was Ozark Brewing Co., which John Gilliam opened in 1994. The “brew pub,” which makes a good deal of its money from sales of beer, saw sales increase by 38 percent over 1998 to $2.1 million. The restaurant had a 15 percent drop in sales the previous year, so 1999 more than made up for the weak showing in 1998.

Taking the biggest drop in the list was Rio Bravo Cantina, which fell from No. 5 in 1998 with sales of $2.19 million to No. 8 in 1999 with $1.79 million (an 18.3 percent decline). The restaurant changed owners during the year.

In April 1999, Applebee’s International Inc. sold its 65-unit Rio Bravo chain of Tex-Mex restaurants to Chevy’s Inc., a Mexican restaurant chain based in California, for $53 million in cash and $6 million in assumed debt. Applebee’s said the Rio Bravos weren’t making enough money. Rio Bravo accounted for only about 10 percent of profits in 1998 for Applebee’s International, which is primarily known for its Applebee’s Neighborhood Grill & Bar eateries. Chevy’s plans to spend another $6 million to integrate Rio Bravo into its chain of about 100 Fresh Mex restaurants.

The Fayetteville Rio Bravo opened in September 1997 with the highest monthly sales record in Fayetteville history — $361,767. During the first three months it was open, Rio Bravo brought in $850,986 in sales. Since then, the newness seems to have worn off as more restaurants opened in the city.

Red Lobster is a subsidiary of Darden Restaurants Inc. of Orlando, Fla. Jose’s is owned by Joe Fennel of Fayetteville. For tax purposes, Jose’s is actually three separate eateries in one building: the Mexican restaurant; Bordino’s, an Italian restaurant; and Jose’s Streetside, a sidewalk cafe open during warm weather.

This year, we also calculated sales per seat since some restaurant owners claim that’s the best barometer of a restaurant’s financial health.

But Bill Mathews, co-owner of the franchise group that operates Fayetteville’s McDonald’s restaurants, said sales per seat isn’t a good indicator for fast-food restaurants.

Mathews’ McDonald’s on U.S. Highway 62 topped the list with sales of $17,900 per seat. But 60 percent of the diners at that restaurant were using the drive-through window instead of eating indoors.

“That skews everything,” Mathews said.