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Schiller Del Grande eyes new concepts, forms plans for Cafe Express

HOUSTON The Schiller Del Grande Restaurant Group has brought the 18-unit Cafe Express fast-casual chain back under its umbrella, which also includes the fine-dining Cafe Annie, the casual Taco Milagro and a growing number of other concepts.

The buy-back comes as the concern is looking to revamp Cafe Annie, a fine-dining landmark. It is also looking to launch a new fast-casual venture.

Schiller Del Grande and its financial partner, the Redstone Cos. of Houston, bought Cafe Express back this summer, though terms of the purchase were not disclosed. Wendy’s International Inc. originally purchased a minority stake in Cafe Express in 2002, which it later increased to 70 percent. It acquired the remaining 30 percent in February of this year before selling Cafe Express on July 29. Principals Lonnie Schiller and renowned chef Robert Del Grande founded the concept, one of the first brands to be given the label "fast casual," in 1984.

Schiller, chief executive of SDG, said Cafe Express had become “a little over-institutionalized” under Wendy’s ownership. The concept has units in Houston and Dallas, and in 2006 had sales of about $32 million.

SDG is planning a new version of Cafe Annie, which it launched in Houston more than 25 years ago. Under chef-partner Del Grande, the restaurant became a destination for Southwest cuisine. The new version is being created because the site of the old one is scheduled to be redeveloped.

In addition, SDG was chosen to build and operate two restaurant concepts in downtown Houston’s new $122 million, 12-acre park. The park, called Discovery Green, will officially open on March 1.

In December, SDG plans to open The Grove, a 10,000-square-foot outlet similar to the company's Bar Annie concept. SDG has said the restaurant would feature “upper-end casual dining.” It is being designed by Candace Schiller, Lonnie Schiller’s wife and partner in the group. Del Grande is developing the menu.

The second restaurant, called The Boathouse, is scheduled to open in February. The company envisions it as a family-friendly, fast-casual concept with burgers, hot dogs, salads and shakes.

Last year, SDG expanded its fast-casual Mexican concept Taco Milagro from the original location in Houston to three new areas in the city: Baybrook, Willowbrook and The Woodlands.  It was the first expansion since the concept was launched in 1998.

Redstone Cos. owns the Houstonian Hotel, Club & Spa as well as a number of financial and oil and gas businesses.

TAGS: Finance News
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