Business Spotlight: Making the Cut

July 29, 2008, was the day Jimm Swafford woke up without a job.

The Steak & Ale restaurant chain filed for Chapter 7 bankruptcy protection, and its owner, Metromedia Restaurant Group, shuttered 200 restaurants nationwide, including all Steak & Ales and corporate-owned stores under sister brand Bennigan’s.

Swafford served 11 years as general manager of the Springfield restaurant, 1935 S. Glenstone Ave., where some 40 staff members worked.

Although the suddenness of the 2008 closure was a shock, Swafford says he had observed the corporation sinking for several years, though the Springfield store maintained positive sales and a top-five ranking companywide.

“The last couple years of Steak & Ale, quality was a big issue,” he says. “They spent too much money on buy-one-get-one-free deals, and trained the customers to expect discounts. That had to be offset by cutting labor costs and eventually downgrading their beef products.”

Having managed Missouri’s sole remaining Steak & Ale property, Swafford knew the guests, the model and the market. He approached landlord and restaurant regular Errett Sechler of Plaza Towers LLC about going into business together, and they struck a deal after lengthy discussions.

The restaurant reopened in December 2009 as Jimm’s Steakhouse and Pub.

The business partners invested $550,000 in renovations to bring in more color and light to the dark wood and dimly lit Steak & Ale motif and to update the bar from its traditional steakhouse experience. The wine list has ballooned to 30 by-the-glass selections, and live music on weekend nights adds an extra element. Head chef and in-house professional meat cutter Travis Burrell has brought the focus back to quality ingredients, with a focus on Angus beef.

Call for service
Front-of-house manager Eric Delzell was part of the jobless crew that fateful day almost five years ago, but he returned to the fold when the new plans were hatched.

“As soon as any murmuring began about opening back up, there was a constant stream of inquiries about the opening date. People were trying to make reservations before there was even carpet on the floor,” he says. “A lot of people are just loyal to Jimm, period.”

Swafford, the manager partner, and Delzell rebooted the service model, which had eroded as the corporate chain’s finances slid farther into the red. Both recall the Catch-22 of trying to hit unrealistic corporate expectations for labor percentages while struggling to provide a higher level of service.

“I was on a phone call [with corporate officers] every Thursday for having the top five worst labor percentage in the company,” Swafford says. “I was a star otherwise, but not with labor costs.”

Today, among the 55 employees, 15 percent of original staff members are on board and only eight employees have worked there less than 30 months.

Staffing levels are 30 percent higher than the Steak & Ale peak, a fact the operators credit for Jimm’s versatility to serve guests from families celebrating special occasions on a budget, to the business lunch crowd and the traditional high-end steakhouse guests.

“A lot of restaurants can’t cater to multiple niches in the same way,” Delzell says. “We try to ingrain a sense of gratitude in our staff and make them realize that the (we) are the guests – not the other way around. Our customers decide whether or not this business is successful.”

Decision rendered
The comeback at Jimm’s has resulted in annual sales up $500,000 over Steak & Ale’s swan-song years.

The independent eatery has posted double-digit revenue gains in each of the past three years, climbing 12 percent in 2013 to a peak of $2.5 million, Swafford says.

Swafford points to Jimm’s high involvement and visibility in community events such as Taste of Springfield and Rock’n Ribs, as well as a unique charity outreach the team created.

Each year, groups of homeless youth from The Kitchen Inc.’s Rare Breed program are invited to the restaurant in chaperoned groups of five or six. They enjoy “no-limit” meals, staying as long as they like, ordering whatever they want and having as much as they can eat, giving them an experience unlike anything they’re used to.

“It’s a special thing to see kids enjoy lobster for the first time,” Swafford says, noting a similar Jimm’s effort plays host to homeless mothers around Mother’s Day.

In addition to local patronage, an estimated 10 percent of Jimm’s traffic comes from tourists, particularly Route 66 travelers. Swafford says area motels are a source of referrals, and high ratings on travel sites TripAdvisor.com and Urban Spoon maintain the activity.

With the $7.59 salad bar popular at lunch to dinner entrees that range from $13 to $35 for twin lobster tails, Swafford believes people crave a break from the standard food-service fare.

“I don’t think some of the national chains keep up with trends as well as they should,” he says. “People are looking for more of a unique dining experience, as opposed to someplace noisy with peanut shells on the floor.”[[In-content Ad]]