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Seattle Mariners Success Putting a Chill on the Local Restaurant Scene

By Jiquanda Davis, The Seattle Times
Knight Ridder/Tribune Business News 

Aug. 22--The Mariners may be the hottest team in Major League Baseball, but they are putting a chill on the local restaurant scene. 

Coupled with a slowing economy, many local restaurants are reporting a drop in business, including Billy McHale's, a four-restaurant chain that has filed for Chapter 11 bankruptcy protection. 

"When you have 45,000 people in Safeco Field buying hot dogs and T-shirts, that decreases the entertainment dollars for restaurants. When the Mariners are away people are staying home to watch the games," said James Day, the attorney representing Billy McHale's. 

Billy McHale's, known as a family-friendly steakhouse chain, closed its Tacoma restaurant last month. The company plans to keep open its four remaining restaurants in Renton, Redmond, Factoria and Bellingham, said John Dunn, sales and service manager. 

Two separately owned Billy McHale's restaurants in the Seattle area -- Alderwood and Federal Way -- are not part of the bankruptcy filing. 

Day said the 20-year-old Tukwila-based chain hopes to reorganize its finances and pay its debts. 

"This is a vehicle for the company to get its feet back on the ground," said John Hoehl, owner of the Billy McHale's chain. 

"We're planning on moving forward. Customers and employees aren't even going to notice the difference." 

According to documents filed in U.S. Bankruptcy Court in Seattle, Billy McHale's owes $1 million to its 20 largest unsecured creditors. There are 168 creditors listed. 

Carolyn Jensen, landlord of the Redmond restaurant, has already gone to court to get $74,462 in back rent that, according to court documents, hasn't been paid since April. 

"We're hopeful that Billy McHale's will have a successful reorganization," said Jensen's attorney, Elizabeth Shea. "We just want to obtain rent." 

Billy McHale's, which initially filed for bankruptcy Aug. 2, does not yet have a reorganization plan. Day said that it is expected to be done in a couple of days. The chain does not expect any layoffs. 

The restaurant industry overall is struggling because of the slowing economy. In the Seattle area, the impact of the Mariners -- who are on pace to have one of the best records in baseball history -- is making life even tougher, said Anthony Anton of the Washington Restaurant Association. 

"We don't want to rain on the Mariners' parade. We don't want to sound like sour grapes. We want them to win, but restaurants don't benefit," Anton said. 

"Most people (attending games) eat at the stadium or are watching at home instead of having a night out in their local restaurants. A lot of restaurants are seeing a 30 to 40 percent drop on a big game night." 

The exceptions are sports bars and restaurants with a sports-bar feel. 

"We're pretty busy during Mariners games," said Jason Mayfield, manager of the Applebee's Neighborhood Grill & Bar in Tukwila, which has eight televisions in the restaurant and bar. 

Anton said the state's minimum wage is currently the highest in the nation at $6.72 an hour, which can make it difficult for restaurants to survive. 

The restaurant business has always been tough, with one out of five closing or changing hands every year and 50 percent closing or changing hands within three years, Anton said. In the Seattle area, nearly 20 "high-profile" restaurants have closed already this year, according to a list compiled by the restaurant association. 

The downturn in the local economy has reined in spending by diners, he said. An annual survey by the state restaurant association showed that while restaurants have increased their prices at least 5 percent, customers are spending about the same as the year before by scaling back their tastes -- instead of having prime rib, they're asking for chicken, he said. 

Seattle Times business reporter Bill Kossen contributed to this story. 

RESTAURANT CLOSURES 

Here is a "shortlist of high-profile" restaurant closures so far this year in the Seattle area, according to the Washington Restaurant Association. 

"There is a lot more than this," said association spokesman Anthony Anton. 

Adriatica 

Billy McHale's (Tacoma) 

Bistro Provençal 

Blazes Broiler 

Chef Wang 

Denny's on Mercer Street 

Denny's in Lake City 

Falling Waters 

Hidden Harbor (formerly Franco's Hidden Harbor) 

Jake O'Shaughnessey's 

Jet City Diner (SeaTac) 

Keg (West Seattle) 

Neo Bistro 

Rambunctious Bob's (Bellevue) 

Santa Fe Cafe (Ravenna -- closes Aug. 31) 

Six Degrees (Redmond and Kirkland) 

Stars 

Trapeze 

Godfather's Pizza (12 statewide) 

Skipper's (10 statewide) 

-----To see more of The Seattle Times, or to subscribe to the newspaper, go to http://www.seattletimes.com. 

(c) 2001, The Seattle Times. Distributed by Knight Ridder/Tribune Business News. 


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