For the past two years, Texas-based Del Frisco Restaurant Group, Inc. has considered selling its Sullivan’s Steakhouse unit. Although still not sold, Del Frisco closed several locations and reduced hours of operation at others.
The problem is that Sullivan’s is simply not making enough money to justify continuing its operation. The average meal check, for instance, has recently decreased by 4.7 percent, so locations in Seattle, Houston, and Austin have been shuttered.
Another notable factor is that Del Frisco foresees corporate savings of $500,000 if they sell Sullivan’s. This capital could be plowed into one of their other two units and allow them to deploy the cash into their growing digital platform.
In the fourth quarter of 2017, Del Frisco recorded a loss of $15 million compared to a profit of $7.1 million in 2016. The need to solve the Sullivan cash drain is clearly a priority of management.
Read more at Nation’s Restaurant News