Franchise woes will not close local Bennigan's

BROWNSVILLE - The announcement that S&A Restaurant Corp., owner of Bennigan's Grill & Tavern and Steak & Ale, filed bankruptcy will not impact the Brownsville franchise, restaurant management reported on Wednesday.

"As far as we're concerned, business will continue as usual," said Jason Furgatch, restaurant manager at Bennigan's in Brownsville.

On Tuesday, S&A Restaurant Corp. filed for Chapter 7 bankruptcy, taking with it hundreds of restaurants, citing economic weakness, food inflation and a shift in customer preference for less expensive dining alternatives.

The financial woes at the corporate office will not be felt by many Bennigan's franchises, at least in the short term, Furgatch said.

As a franchise, Brownsville's Bennigan's restaurant is not subject to the same corporate mandate as others. Most franchise locations are expected to remain open, Furgatch said, but changes could still be forthcoming.

Despite a steady flow of customers, Bennigan's still faces tightening economic conditions in a declining industry, according to industry analysts.

Franchise owners are prepared to decide the direction of the approximately 138 restaurants nationwide and the Bennigan's name.

For the time being the local pub and eatery will keep its doors open and 30 employees.

"We're still here," Furgatch said. "It's good to know I still have a job."

ela