HUDSONS GRILL OF AMERICA INC

HUDSONS GRILL OF AMERICA INC

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Company Overview
The company is a publicly quoted entity that is engaged in the franchising of restaurants. It conducts its business from its registered head office located in Dallas, Texas, United States.
The company operates and franchises Hudson’s Grill restaurants. Hudson’s Grill restaurants are full service restaurants, which serve lunch and dinner and a wide range of alcoholic beverages. Its major focus is to expand the Hudson’s Grill operations through franchising instead of through ownership. The Hudson’s Grill restaurants are operating in California, Michigan and Texas.
Business Summary
Hudson’s Grill of America, Inc. operates and franchises Hudson’s Grill Restaurants. Hudson’s Grill Restaurants are full service restaurants, which serve lunch and dinner and a wide range of alcoholic beverages. On January 3, 1999, there were 12 Hudson’s Grill restaurants, all of which were franchised. In January 1999 a subsidiary of the Company opened a Hudson’s Grill Restaurant in Dallas, Texas, and in April 1999, a franchisee opened a Hudson’s Grill in Marquette, Michigan. The Company’s major focus has been to expand the Hudson’s Grill operations through franchising instead of through ownership, but recently it has changed its emphasis; as funds permit, it now also plans to open Hudson’s Grills to operate as company stores. The Hudson’s Grill restaurants are currently operating in California, Michigan and Texas.
Description and history
Hudson’s Grill of America, Inc., incorporated in June 1979, operates and franchises Hudson’s Grill Restaurants. Hudson’s Grill Restaurants are full service restaurants, which serve lunch and dinner and a wide range of alcoholic beverages. At January 3, 1999, there were 12 Hudson’s Grill restaurants, all of which were franchised. The Company’s major focus has been to expand the Hudson’s Grill operations through franchising instead of through ownership, but recently it has changed its emphasis. As funds permit, the Company now also plans to open Hudson’s Grills to operate as company stores. The Hudson’s Grill restaurants are currently operating in California, Michigan and Texas. The Company is however still accepting franchises.

Hudson’s Grill is a full service, limited menu concept with alcoholic beverage service. The management teams work with the philosophy that the customer should be viewed as their guest. They stress quality of product and service,efficient flow of communications, integrity in job performance and strong employee morale. These restaurants range in size from 2,500 to 5,500 square feet. The decor package has the theme of a classic grill of the 50’s and 60’s, with the front end of a Hudson’s automobile coming through the wall as a main feature. Some restaurants are in freestanding buildings, and some are located within in-line shopping centers.

Most Hudson’s Grill restaurants open at 11 a.m. and remain open until midnight, seven days a week, utilizing the same menu throughout all parts of the day. They specialize in 1/3 pound hamburgers with the beef patties produced to very exacting specifications. The menu also features an expanded chicken sandwich section using top quality chicken breasts and whole wheat buns. Also on the menu are salads, sandwiches, a variety of appetizers, fajitas, tacos, and handmade milkshakes and malts. Cocktails, beer and wine are also available with food.The full service restaurant concept utilizes booths and tables with waiters and waitresses serving the guests.

In April 1999, Sharfe, L.L.C., a Michigan limited liability company, opened a Hudson’s Grill in Marquette, Michigan. The restaurant is a free standing building, using the new prototype that was used for the Dallas, Texas, and Jackson, Michigan, locations, and is being operated by Frank and Jim Stabile. In January 1999, Hudson’s Grill of Richardson, Inc., a subsidiary of the Company, opened a Hudson’s Grill restaurant in northern Dallas, near Richardson, Texas, a suburb of Dallas. This new restaurant is the first Company restuarant to open in many years, and is the only Company operated location. It will be used for training, and if successful, the free standing prototype will be duplicated whenever possible.

The Company also announced in January 1999 that the Company’s Carrollton, Texas, franchisee had decided to shut down the Hudson’s Grill in Carrollton.The location was on a month to month lease, and in the fall the owner of the franchisee had decided to return to California. Another franchisee, Burgers of Lancaster, Inc., a Lancaster, California, franchisee, closed in mid-January 1999. The owners of the Lancaster franchisee had been in bankruptcy.

In December 1998, the Company’s prospective Reno, Nevada, franchisee elected to terminate its franchise agreement prior to initiating site selection or construction. In September 1998, a Company franchisee opened a Hudson’s Grill in Jackson, Michigan. In March 1998, the Company’s subsidiary, Hudson’s Grill of Whittier, Inc., closed the Hudson’s Grill located in Westlake, California, and turned the premises and furniture, fixtures and equipment over to the landlord prior to the end of the lease. In April 1998, after a franchisee quit the premises, the Company decided not to re-open the Hudson’s Grill in Whittier, California,because of marginal performance and the expense to upgrade the restaurant to local and national standards.

In February 1998, the Company’s franchisee in Guatemala, closed its Hudson’s Grill restaurant in Guatemala City. In January 1998, the Company formed an affiliate, Hudson’s Grill of Denton/Trinity, Inc., to operate the Carrollton, Texas, Hudson’s Grill. The former Carrollton franchisee’s furniture, fixtures and equipment had been repossessed and its right to possess the premises had been terminated by the landlord. Afterward, the landlord entered into a lease with the Company’s affiliate to lease the premises and the owner of the furniture, fixtures and equipment entered into a lease with the affiliate also. Subsequently, the affiliate was sold to a franchisee. In January 1999, the franchisee decided not to renew its lease and closed down the restaurant.

Business Line
Engaged in the franchising of restaurants
Subsidiary

Advisor
HEIN & ASSOCIATES
IPO date

US SIC Code
5812
Company Address
Suite 402
16970, Dallas Parkway
City province or state postal code
75248, DALLAS, TX
Phone: +1 972 931 9237
Fax: +1 972 931 2807
Country address: UNITED STATES OF AMERICA
Website url: www.hudsonsgrill.com