Hudson’s Grill Signs Pact to Expand Chain in Florida
Hudson’s Grill of America Inc., Ventura-based operator of the Hudson’s Grill restaurant chain, has launched an aggressive franchising program by signing an agreement with a Florida company that hopes to open at least 16 units in that state in the next five years.
The deal, giving Delta Food Services Inc. the exclusive right to open Hudson’s restaurants in Florida, marks the chain’s first expansion east of the Mississippi, said Charles L. Boppell, Hudson’s president.
“We’re talking to groups throughout the United States,” he said. “We hope to become a nationwide organization, mostly through franchising.”
Four investor groups have already agreed to develop 71 new Hudson’s Grills over the next 20 years, Boppell said.
There are now 20 Hudson’s, mostly in Southern California. Hudson’s of America owns 14 of them and also operates two specialty restaurants in Ventura and Santa Barbara.
“We feel franchising is the way for us to expand in the future,” Boppell said. “Our long-term goal is to have 70% of our units franchised, with the rest company-owned.”
He added: “Most of the growth will be outside California due to the slow economy and problems involved in doing business here.”
Discussions are being held with three groups interested in acquiring new franchise territories, Boppell reported. He said franchised units are already operating in Oregon and Texas.
Boppell said business at the company’s restaurants has rebounded somewhat in recent weeks after declining during much of the past year. Evelyn West, the company’s controller, blamed rainy weather and California’s recession for some of the company’s problems.
For the fiscal year that ended Jan. 3, Hudson’s had a net loss of $173,000 on revenue of $18.4 million. In the previous year the company posted a profit of $3.2 million on revenue of $22 million.
Most of the revenue decrease, however, is attributable to the firm’s reduced size after the sale of 11 Wendy’s fast-food units and two other restaurants in the earlier period.
In Ventura County, Hudson’s has more than 120 employees at four company-owned Hudson’s units and a specialty restaurant, Hornblower’s, in Ventura. In addition, a dozen employees are based at corporate headquarters on Everglades Street in Ventura.
Boppell said the Simi Valley Hudson’s was recently redecorated to resemble an auto showroom--a theme that may become chain-wide. The restaurants now emphasize a 1950s look.
