CHICAGO The venture formed by chefs Rick Tramonto and Gale Gand to open high-end restaurants nationwide has been folded into a new umbrella company here with coast-to-coast development capabilities. The newly formed entity, The Crescendo Cos., is the latest well-financed concern in recent weeks to divulge plans for the stepped-up expansion of upscale restaurant concepts.
News of Crescendo's launch by three real estate veterans here follows the disclosure last week of Starwood Capital's $150-million purchase of B.R. Guest, the New York independent-restaurant group whose holdings include Ruby Foo's and Dos Caminos. With the backing of Starwood, the private-equity company of former Starwood Hotels & Resorts chief executive Barry Sternlicht, B.R. Guest plans to expand into other cities by duplicating its concepts and buying other restaurant groups, according to founder and chief Steve Hanson.
Meanwhile, the bicoastal restaurant concern Patina Restaurant Group LLC is in the process of buying Smith & Wollensky Restaurant Group Inc., operator of the namesake steakhouse chain and a handful of high-ticket one-of-a-kind restaurants, for about $80 million. Smith & Wollensky provides Patina with a luxury steakhouse brand to develop in addition to its own Nick & Stef's concept. Patina is a partnership of chef Joachim Splichal, former Restaurant Associates chief Nick Valenti and the deep-pocketed Japanese conglomerate Shidax Corp.
The principals behind Crescendo are David Bossy, Michael Firsel and Peter Dumon, who described themselves in Tuesday's announcement as having "been active in the greater Chicago-area commercial real estate community for the past 30 years."
Crescendo, they said, is anchored by four concerns involved in real-estate development or the hospitality business. The Harp Group, led by Dumon, develops lodging and hospitality projects from its headquarters in nearby Oak Brook Terrace. Oakbrook-based Mid-America Development Partners LLC, headed by Bossy and Firsel, develops retail and shopping complexes. Portfolio Hotel & Resorts, also in Oak Brook Terrace, will operate resorts and hotels developed by Crescendo, the company said. And Tramonto and Gand's Cenitare Restaurants will develop and manage restaurants in the various affiliated facilities, Crescendo indicated.
It noted that Harp Group alone has nearly a dozen "hospitality-related properties" in development from coast to coast.
The deals disclosed in recent weeks follow last year’s announcement of an agreement struck by famed New York City chef Jean-Georges Vongerichten and partner Phil Suarez to develop upscale restaurants in collaboration with Starwood Hotels & Resorts and the private-equity firm Catterton Partners. The principals noted at the time that they would open the eateries in streetside locations as well as within Starwood’s various lodging chains.
The flurry of activity comes as many operators of multiple casual-dining brands are reporting better financial results from their upmarket entrants than from their lower-priced mass-market holdings. OSI Restaurant Partners Inc., for instance, has enjoyed a strong performance from its white-tableclothed Fleming’s holding than it has from its usual workhorse, the Outback Steakhouse chain. Similarly, same-store sales have been stronger for the higher-ticket concepts of Landry’s Inc. and Rare Hospitality.
It was not clear if Crescendo holds a financial interest in Cenitare or is merely functioning as a marketing partner. Crescendo valued the portfolio of properties it manages or now has under development at $1.2 billion.
Among those holdings are the Westin Chicago North Shore complex in Wheeling, Ill. Included in the site are Tramonto and Gand's four new concepts: Osteria di Tramonto, Tramonto's Steak & Seafood, the RT Lounge and Gale's Coffee Bar.
Also affiliated with Crescendo is the Intercontinental Chicago O'Hare, a complex slated to be completed by the fourth quarter of 2008. The airport-side development will include an Osteria di Tramonto.
Tramonto and Gand operate Chicago's highly rated Tru restaurant in partnership with concept creator and independent-group leader Rich Melman.