Redstone Restaurant

Document Sample
Redstone Restaurant Powered By Docstoc






PRESS RELEASE: Minneapolis (August 6, 2009) - Shrugging off the impact of the recession and a
challenging restaurant industry operating environment, Redstone American Grill reports that it has made
key organizational changes, significant operating improvements and continues to produce industry leading
sales volumes at its five restaurant locations.

With an average per unit sales volume approaching $8 million dollars, Redstone is one of the most
productive restaurant concepts in America today and has made critical operations decisions to ensure that
concept growth will continue.

"The last eighteen months have been challenging for our industry. However, the popularity of our concept
and our strong sales volume allows us to manage our way through this tough period" said Craig
Oberlander, Co-CEO. "Our success is not a secret within the industry; we were just recognized as one of
"The Future 50" by Restaurant Business Magazine."

Recent strategic and tactical approach resulted in a plan that creates opportunity for continued growth in a
difficult operating environment and tight credit markets. Fortunately, the tremendous sales volume
produced by Redstone restaurants makes them a desirable "tenant of choice". The company has a
preliminary agreement with an investor to provide funding for expansion. Redstone expects to open one or
two additional restaurants by the end of 2010.

"Redstone restaurants generate high-traffic volume from consumers with a highly desirable demographic
profile" said Allan Hickok, Co-CEO and director. "The strength of our business in a difficult environment
presents us with attractive growth opportunities by capitalizing on now favorable site selection choices due
to the contraction of retail chain expansion."

Organizational Changes:

* Lyle Berman Joins Board of Directors: Berman is a significant investor in Redstone and has joined the
board as an independent director. Berman has a history of successful entrepreneurship with significant
restaurant industry experience. He is currently chairman and CEO of Lakes Entertainment, Inc.
(NASDAQGS: LACO). Previously, he served as the founder of Grand Casinos, Inc., the chairman and
CEO of Rainforest Café and was instrumental in forming World Poker Tour Enterprises (NASDAQ:
WPTE), currently serving as chairman of the board.

* Larry Ryback Promoted to President: Ryback assumes additional responsibilities in addition to his role
as COO. Ryback is an industry veteran with more than 20 years experience in full service dining. He has
assembled an extraordinarily talented team to manage Redstone's high volume restaurant operations.
* Allan Hickok and Craig Oberlander Named Co-CEO's: Longtime board member Allan Hickok, a 24-year
restaurant industry veteran has been named Co-CEO with Craig Oberlander. Hickok founded Restaurant &
Retail Strategies, an advisory firm located in Minneapolis. Hickok was directly involved in the placement
of nearly $2 billion of public and private equity and a large number of merger, acquisition, restructuring
and other restaurant chain advisory assignments. Craig Oberlander, also a longtime board member, has
served in various capacities for Redstone since 2003. Prior to joining the company, he was responsible for
all real estate matters and the national expansion of Champps Entertainment, Inc. Over his 30-year career,
Hickok has held positions with OPUS Corporation, Baker Properties and IDS Properties, also serving as an
advisor to Blue Cross and Blue Shield, Planet Hollywood and Outboard Marine Corporation on real estate

* Redstone Founder Resigns: As previously reported, in May 2009, the founder of the Redstone concept
resigned as CEO, officer and director.

* Repurchase of Shareholder Interest: The restaurant industry is highly regulated, especially so when
selling alcoholic beverages. Many states prohibit private restaurant ownership by shareholders with certain
criminal records. An individual Redstone shareholder was charged with a criminal offense. This
shareholder had absolutely no dealings with the company on a day to day or operational basis, nor have
they gone to trial. In order to avoid potential issues Redstone purchased the shareholders stock in July,
* Credit Facilities/Balance Sheet: Redstone enjoys an excellent relationship with its principal lender and its
balance sheet is sufficient to meet its needs.
* Menu Architecture Modifications: Early in 2009 Redstone fine-tuned its menu going "back to its roots"
by bringing back popular favorites and eliminating several high priced, yet slow moving items.

"Lyle Berman has deep knowledge and experience in the hospitality industry. His support reflects
confidence in our concept, team and the opportunity to create shareholder value through growth."
Oberlander said.

"We have had a fantastic response from our guests about our menu changes" said Larry Ryback, president
and COO. "The menu changes coupled with effective purchasing and labor management initiatives have
allowed us to increase our restaurant level profitability by nearly five points in the last two quarters."

The combination of strong financials, an experienced leadership team, healthy operational oversight and
opportunities to capitalize on retail and restaurant real estate vacancy rates for future new construction and
conversion opportunities are all working in Redstone's favor.

About Redstone American Grill

With numerous food and concept awards to its credit, Redstone is best described as spirited, rugged and
romantic. Redstone features a wood burning grill, rotisserie and an open exhibition kitchen where
signature menu items are creatively prepared including rotisserie chicken, steaks, chops, chicken, salads,
burgers and the freshest seafood available.

Redstone American Grill was chosen as one of Nation's Restaurant News' "Hot Concepts!" for 2005 and
recently received a "Best Burger" ranking in the August 2009 issue of Mpls. St. Paul Magazine. Redstone
has five locations: Minnetonka, Minn., Eden Prairie, Minn., Oakbrook Terrace in suburban Chicago, Ill.,
Marlton, N.J., and Plymouth Meeting, Pa.

For more information

Shared By: