Bonanza vs. the Burgers

Sometime in 1976, you may see Bonanza Steakhouse billboards, ads and lapel buttons around Dallas that say: “If You Can Afford Their Hamburgers, You Can Afford Our Steaks.” Some might question the accuracy of this proposed campaign, but Agnes Davidson, who manages Bonanza’s marketing services, insists that the tab for a Bonanza steak, baked potato, salad and beverage is within 25 cents of you-know-whose Big Mac, large fries and a large drink.

The folks at Bonanza International are delighted with the catchy dig at McDonald’s, Burger King and Jack-in-the-Box, but they aren’t so sure that steak will be the only entree at Bonanza next year. Bonanza, a Dallas based company which operates or franchises 600 restaurants, is taking a hard look at its menu and its decor.

Wild fluctuations in beef prices were partly responsible for Bonanza’s $4.1 million loss last year, which explains why odors of fish and chicken are wafting out of Bonanza’s Richardson test kitchen and management school. Bonanza is also planning to add breakfast to its menu.

Another Dallas based restaurant is making some changes too. El Chico has dropped about 30 per cent of its menu, mostly American items, and is remodeling its dining rooms into clusters of mini restaurants. El Chico’s customer research has shown that its patrons like small, intimate Mexican restaurants, with subdued lighting.

Bonanza and El Chico are trying to adjust to shifting consumer taste, inflation and the energy crisis. It’s tricky business. Alan Berger, whose firm designed and outfitted TGI Friday’s, Magic Pan and Sambo’s sums it up. “Chemistry, you’ve got to have. Too many people think because they can cook a hamburger at home they can open a restaurant and cook one. Man, have they got a rude awakening.”