Upstarts: Barney's Beanery Hits the Road

Barney’s Beanery finally takes its 85-year-old roadhouse to new markets.

By Maya Norris, Managing Editor -- Chain Leader, 2/1/2006

In the glitzy and glamorous Los Angeles dining scene, where adventurous cuisine and high design rule, Barney’s Beanery is an anomaly. Founded in 1920, the legendary roadhouse restaurant and bar has managed to stand the test of time by simply serving up large portions of affordable comfort food in a scuffed-up, rowdy environment, while attracting celebrity regulars from Janis Joplin to Quentin Tarantino along the way.

Now co-owners David Houston and Avi Fattal plan to duplicate the West Hollywood landmark in the rest of California and nationwide.

“Some of the Barney’s appeal is, we have a kind of low-expectations vibe to the place,” says Houston, who along with Fattal also owns Q’s Billiard Clubs, a three-unit chain of pool halls in Los Angeles. “We’re not saying that we’re Spago. We’re not saying its fine dining or anything like that. It’s Barney’s. It’s fatty food served well and warm.”

Same Old, Same Old
When the duo purchased the restaurant in 1999, they decided not to mess with Barney’s hallmark large menu and retro, worn-out decor.

The 700-item menu includes breakfast available all day, burgers, chili, hot dogs, sandwiches, barbecue ribs and pizza as well as more than 125 domestic and imported beers with 40 available on tap. The average check is $12.50, but customers feeling extravagant can order the $175 Barney’s Champagne Breakfast, which consists of a giant chili cheese dog and a bottle of Dom Perignon.

The decor is a hodgepodge of “junk and chaos,” Houston says. Multicolored striped booths, dark wood walls and exposed steel beams provide the backdrop for license plates on the ceiling, tables decoupaged with photos and articles about celebrities and politicians, and pop culture memorabilia like magazine covers, alcohol logos and old road signs.

Change Is Good
While the essence of Barney’s has remained, Houston and Fattal did make some changes when they came on board. They added more TVs to better accommodate sports fans, improved the sound system and built an outdoor patio after the state’s smoking ban went into effect.

Most importantly, Houston and Fattal focused on improving customer service. It continues to be the company’s ongoing challenge as it grows. Barney’s is currently working on standardizing its training procedures, putting them on video, elongating the training process and hiring more mystery shoppers.

Houston and Fattal credit their changes for Barney’s improved balance sheet. Average unit volume tracks at $5 million, up from $1.5 million in 1999. The company posted $10 million in systemwide sales in 2005 and expects to generate $15 million in 2006.

Barney’s opened its second unit in August 2004 in Santa Monica and plans to open another in March in Pasadena, which will include a double-decker bus in the unit. As the company investigates locations in San Diego, San Francisco and Las Vegas for its next few stores, it is looking for sites in metropolitan areas with a mix of locals, businesspeople and tourists.

Barney’s plans to have 20 to 25 units nationwide in 10 years.