Chili eatery coming to Lansing
Date: 1/7/2004 12:00:00 AM
Written By: Susan Stock - Lansing State Journal

Charlie & Barney's
Founded: 1977
Headquarters: Indianapolis
Stores: Nine
States: Georgia, Indiana, Illinois (Ohio under development)
Web site: http://www.cbchili.com
For more licensing information, contact Tim Lee at (317) 258-7704 or timlee@cbchili.com.
By Susan Stock - Lansing State Journal

An Indianapolis chili restaurant chain is looking for local licensees to build as many as seven Lansing-area restaurants. If all seven are built, they will bring more than 100 jobs and an estimated $2.8 million in economic impact to the area. "We're currently talking with a few groups in the Lansing-East Lansing area," said Tim Lee, the company's executive director. "If we found a developer who wanted to buy up the area, we'd entertain that. If not, we'd look at folks who want one to three locations." Already, Lee said, one person is interested in opening restaurants in East Lansing and near the Eastwood Towne Center. A deal hasn't been signed yet, however. Lee said the area should get its first licensee by April. Charlie & Barney's was established in Indianapolis in 1977, but only recently started to license. The restaurants serve chili, burgers, fries and hot dogs. Many also serve breakfast. Lee said there are nine restaurants in Indiana, Georgia and Illinois, with stores coming in Ohio. The chain has launched an ambitious expansion, aiming for 200 new stores in the next two years, all in a dozen Midwest states. Opening a Charlie & Barney's costs about $100,000 - a one-time $12,000 license fee, about $32,000 in equipment, $40,000 in building costs and the rest for working capital. There also is a 6 percent royalty fee. Lee said average annual store sales are about $500,000. Most Charlie & Barney's stores are 1,600 to 2,200 square feet and located in strip malls or shopping districts. Stores employ an average of 15 people. The emergence of Charlie & Barney's fits with the growing number of "fast-casual" restaurants nationwide, said Kristyn Sorensen, spokeswoman for the Michigan Restaurant Association.

"As far as I know chili is not on the rise," she said. "But Lansing has seemed to be attracting a lot of soup. Maybe it's our cold weather. But this does seem like another venue that fits the fast-casual trend." Lee said he's not worried about competitor chili restaurants such as Skyline Chili, which last summer opened its first Lansing store downtown. "We won the Indianapolis chili cook off 12 years running, so I'm not that worried," he said.

Larry Jukes, vice president of Stewart to open six of these units by month’s end.

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