MINNEAPOLIS Famous Dave’s of America Inc. said it closed its three restaurants in Atlanta because the restaurants were losing money and terminated two leases for restaurants that were slated to open next year in Hoffman Estates, Ill., and Hyattsville, Md.
The company, which operates or franchises 170 casual barbecue restaurants, said it would take up to $2.5 million in fourth quarter charges for the retrenchment.
“We made the decision to take these actions in order to preserve cash and respond appropriately to the current slowdown in market conditions,” president and chief executive Christopher O’Donnell said in a statement. He also said Famous Dave’s is reconsidering other openings while focusing on the unit-level economics of existing restaurants and striving to refine a smaller, less expensive prototype.
Famous Dave’s reported a same-store sales drop of 4.7 percent for company-owned restaurants and 4.6 percent for franchised stores for its third quarter ended Sept. 28, along with a net loss of $763,000. It raised menu prices about 2 percent in October.
As of today, the company operates 47 restaurants and franchises 123 in 36 states.