Thomas J. Baldwin has seen a lot of changes in the steakhouse segment since joining Morton’s Restaurant Group in 1989 as chief financial officer and vice president of finance. At that time there were nine Morton’s The Steakhouse units; today the company operates 80 restaurants in the United States, Puerto Rico, Hong Kong, Singapore and Canada. Chairman of the board and chief executive of Morton’s since 2005, Baldwin is optimistic about the luxury-steakhouse segment’s future prospects, even in the face of the current economic downturn.
How is the upscale-steakhouse business faring these days?
Business is being impacted by what’s going on in the external environment. Reduced business travel and lower hotel occupancy have been affecting our business.
How is Morton’s doing?
Morton’s is performing well. I’ve been with the company since 1989, and we’ve managed through some difficult times in the last couple of decades. We’re managing as we have in the past. When you look back over 30 years of history, we’ve undergone several recessionary periods and encountered challenges. But many members of our senior management team have been here for many years, so that helps. It allows us to focus on the longer term and not be distracted by short-term headlines.
Some people contend that the upscale-steakhouse segment is overbuilt. What do you think?
I don’t believe that to be the case. I believe there is considerable opportunity for stronger brands to continue to grow throughout the United States as well as through international opportunities.
FAST FACTS EDUCATION: MBA, Iona College, New Rochelle, N.Y.BIRTHPLACE: New YorkAGE: 53HOBBIES: Reading, sports, spending time with familyPERSONAL: married; two daughters
Can you talk about growth?
We’d like to be in Shanghai and Beijing and certain other strategic areas in Asia. We’re essentially in every major city in the U.S., and we plan to round out our presence in more populated markets. Our long-term growth initiatives represent 7-[percent] to 10-percent unit growth.
Are you doing anything new to drive traffic?
We’ve initiated our Steak and Seafood program. The program features steak and seafood offered with sides and dessert for $99.99 [for two]. We also have enhanced some marketing initiatives. We have focused on building relationships with guests [using a] four-walls marketing concept. The experience is made in the restaurant and the relationship between management and employees is what drives business.
What kind of decisions are you making to move the chain forward?
We introduced our Bar 1221 strategy in 2004 and have rolled it out to a little more than half our restaurants. We plan to continue to retrofit those restaurants that don’t have it. The program features a beautifully appointed bar with fine design features, a bar bites menu, and a selection of specialty drinks and wines. It’s been very successful.
We also are continuing to build our private dining room and boardroom business, and continue to work to broaden our appeal and drive guest frequency.