Ravi Godhia and his wife, who both were born in India, came to Texas eight years ago to chase the American Dream. After riding a roller coaster this summer with their star-crossed Bennigan’s restaurant franchise in Irving, the Godhias still are chasing the dream. But these days they’re a little more tentative, a little less trusting than they were before.
After graduating in hotel/restaurant management from Collin County Community College, the husband-and-wife team bought a Bennigan’s franchise off State Highway 114, put up a 5,000-square-foot building, and opened their 180-seat restaurant in July 2006.
Business went swimmingly for the Godhias and their 30 employees until late July.
That’s when S&A Restaurant Corp.— parent firm of the Irish-themed restaurant chain—unexpectedly filed for Chapter 7 bankruptcy protection. S&A’s owner, Plano-based Metromedia Restaurant Corp., promptly shuttered all the Bennigan’s that were owned by the company. Meantime, more than 80 franchise-owned Bennigan’s in the U.S.—including the Ghodias’, one of two such locales in North Texas—remain open for business for now.
But Ravi, the eatery’s CEO, and his wife Pinky, the general manager, say the effects of the bankruptcy and the highly publicized closures have been “scary” for their operation. Business at the Irving restaurant—which they’ve pumped $2.2 million into thus far—has fallen off since the bankruptcy filing by 30 percent. Their marketing and advertising costs have skyrocketed. And there’s no guaranteeing their food suppliers beyond year’s end.
“What’s going to happen to us?” asked Ravi, 38, sitting at a table in the couple’s spotless restaurant one recent rainy morning. “Will people come to us? I hope so.” His wife, 40, struck a sharper note. “I have mixed feelings of being betrayed as well as shocked,” she said. “I sincerely feel that [Metromedia/S&A] should have informed their franchisees.”
In retrospect, Ravi says, he wishes he’d pressed the parent company for more information about Bennigan’s financials before signing his franchise agreement. “They don’t disclose their numbers, even to us,” he said. “Instead, they encourage you to speak to other franchisees. I talked with two, including one in Florida, and everything seemed fine.”
Outside, the parking lot was empty and, through the gray drizzle, you could just make out the sign by the frontage road: “Bennigan’s Grill & Tavern. Still Serving.” It was early in the day, though, and Ravi Godhia wasn’t about to throw in the towel.
The Irving Bennigan’s is surrounded by 20 hotels with more than 2,500 rooms, he said brightly. There are few other places in the immediate area to eat. And the Dallas Cowboys would start play in a few weeks just down the road, ensuring more traffic for his Bennigan’s—on Sundays, at least.
So, are there lessons for other business owners in the Godhias’ experience? Ravi believes there are. “Don’t lose hope. Don’t shut down your dreams,” he said carefully. “Invest wisely. But, do your research a little more.”
