Macaroni Grill intends to make the Mile High City its new home.
Romano’s Macaroni Grill, an operator of 160 casual-dining Italian restaurants, on Tuesday announced plans to relocate its home office and restaurant support center to Denver from Houston by April 2017.
The settling in the Rocky Mountain city comes a little more than a year after “Mac Grill” was acquired by Redrock Partners LLC, an entity owned by Colorado Rockies owner Dick Monfort and Dean Riesen, a Phoenix-based investor.
The approximately 50 employees who work at the Houston headquarters and support center have been invited to move with the help of “relocation assistance,” company officials said in a news release. Macaroni Grill will provide support during the job-seeking process, officials said.
Macaroni Grill officials, who declined an interview request, said via e-mail that the company is considering office space downtown.
“We are hoping that all of our approximately 40 Houston-based employees will move with us,” according to an e-mail statement attributed to John Gilbert, Macaroni Grill chief executive. “However, at this time we don’t know because these employees have several months to make their decision.”
The Colorado Economic Development Commission last month approved a $1.32 million tax-credit incentive package for Macaroni Grill. The incentives, awarded under code name “Project Fare,” are to support the creation of 53 jobs over the next eight years.
Monfort, who is a member of the commission, was not present during the application and approval process. The commission was aware of his interest in the company when the incentive was approved, Macaroni Grill officials said.
Macaroni Grill has more than $300 million in U.S. revenue and an additional $70 million in franchise sales, officials said. The company operates 135 locations in 33 states and has 25 franchise locations in the U.S. and 11 countries.
Macaroni Grill has seven locations in Colorado.
The change in scenery could be beneficial to Macaroni Grill, said Darren Tristano, president at Technomic Inc., a Chicago research firm focused on the restaurant and food service industries.
Colorado has served as the birthplace and base of operations for a long line restaurant chains, among them Chipotle Mexican Grill, Old Chicago, Good Times Burgers & Frozen Custard, Red Robin Gourmet Burgers, Noodles & Company, Boston Market and Einstein Bros. Bagels.
“I think Denver’s a good market to assess how to manage operations across the U.S.,” he said. “It’s kind of middle America. I think it’s a good restaurant market from that standpoint — you have access to a number of restaurant chains and (experienced workers).”
Macaroni Grill, like others in the casual dining industry, have sought ways to combat declining demand, Tristano said.
In 2015, casual dining sales lagged those of the limited-service restaurants, which include fast-food and fast-casual operations. Casual dining revenue grew by 3.5 percent, and limited-service revenue increased 5.5 percent, he said.
However, most of the growth in the casual dining sector could be attributed to steakhouses and sports bars.
“What we’re seeing is a very competitive and struggling sector of the restaurant industry that has to be more innovative, creative, create a great experience and provide a value to customers,” Tristano said.
That value, he said, extends beyond prices.
To better compete, casual dining chains should focus on making their restaurants more contemporary, providing more innovative culinary options and incorporating more craft beer and craft cocktails, he said.
