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Retail and Real Estate
Johnny Rockets set to blast off in Las Vegas
By Mark Hansel / Staff Writer

Employees of a new Johnny Rockets franchise in the Venetian food court dance for patrons during lunch time.
SAM MORRIS / STAFF PHOTOGRAPHER

In a city that is constantly reinventing itself, a restaurant that prides itself on its retro image hopes to make the scene in a big way.

From the jukeboxes, to the one-page menu, to the servers who are apt to spring from behind the counter at any time and cut a rug, everything about Johnny Rockets harkens back to what many consider a simpler time.

"That's the whole idea," local franchisee Frank Bonanno said. "The company likes to call it a diner look, but we think of it more as a malt shop."

No matter what it's called, the concept is definitely designed to let people come in, relax for a little while and be entertained.

The food is pretty standard fare — burgers, fries, onion rings, shakes and the like — but it's the little extras that set Johnny Rockets apart.

Servers in white paper hats and matching aprons greet customers with a smile and a nickel to put in the counter jukeboxes, which are filled with classics.

Most of the songs are from the '50s and '60s, but there are some newer tunes with a similar theme. Jimmy Buffett's "Cheeseburger in Paradise," seems especially appropriate for a burger joint located at the food court inside the Venetian, where the newest Johnny Rockets is located.

The servers try to dance a choreographed routine every half hour, except at peak meal times when customer volume can make that pretty tough to do.

Johnny Rockets is not new to Las Vegas; there has been a company-owned store on Paradise Road for several years. Earlier this year, however RedZone Capital Fund II, a firm founded by Washington Redskins owner Daniel M. Snyder, purchased Johnny Rockets. Under the new ownership, an aggressive national expansion plan, which includes more than a dozen stores in the Las Vegas area, is under way.

"Mr. Snyder focuses on buying undervalued companies and moving them forward," said Dave Eberle, Johnny Rockets' senior vice president of franchise sales and development. "This is a great brand that is very well known."

The challenge now, Eberle says, is to cash in on that name recognition.

Franchise owners Frank and Robb Bonanno have opened a new Johnny Rockets in the Venetian food court.
SAM MORRIS/ STAFF PHOTOGRAPHER

The store has received its share of national accolades, but because there are only 217 stores nationwide, the number of people who know about Johnny Rockets far outweighs those who have actually been in one.

Under the expansion plan, the company hopes to have 500 stores open, or under development, within five years.

One reason Eberle said Las Vegas was chosen to help roll out the expansion is its broad tourist base.

Unlike a lot of other franchises that are looking to move into Las Vegas because of the enormous population increase, Johnny Rockets sees potential that extends far beyond the local market.

"We think Las Vegas provides a lot of visibility for our brand," Eberle said.

The idea is that people will come here and visit a restaurant with a familiar name, enjoy the experience, then go back home and want to have it on a regular basis.

That's why, Eberle said, Johnny Rockets is excited that the first location in Las Vegas will be on the Strip (the next restaurant is planned for the Fashion Show mall) and that Bonanno chose to come on board.

Bonanno's company, Fifth Avenue Restaurant Group, specializes in franchise restaurants inside casinos. He has 31 restaurants from different franchises in the Las Vegas area, with seven inside the Venetian.

"We have a lot of experience in securing high-profile, high-volume locations," Bonanno said. "It's something we've done for a lot of years."

Eberle said Bonanno's experience in the market and understanding of what it takes to successfully operate a restaurant inside a casino made him a perfect fit for the company.

"He is exactly the type of franchisee we are looking for," Eberle said.

Bonanno said operating a restaurant inside a casino can be lucrative, but also very challenging.

It is "very expensive" to build, he says, and there is a lot of competition nearby, especially in a food court. On the other hand, there is the advantage of being in a prime location on the Strip and being surrounded by businesses that are a huge draw in their own right.

Ron Pompei, the creative force behind the Urban Outfitters store's design, recently identified the Venetian's Grand Canal Shoppes, which are run by retail giant General Growth Properties, as "one of the great shopping experiences in the world today."

The shops, the casino itself and the nearby properties, Bonanno says, combine to create an incredible amount of foot traffic.

He thinks the things Johnny Rockets have to offer will be hard for those passers-by to resist.

In a food court, where the restaurants are all lined up, Bonanno hopes the dancing servers, cool music, and '50s-style lunch counter will make the restaurant stand out.

Johnny Rockets is not looking exclusively at casino locations, although Bonanno admits that is his preference. The company will likely add at least one more franchisee, and would like to have stand-alone locations throughout the valley, Eberle said.

The one-time franchise fee is $49,000 and there is an ongoing royalty fee of 5 percent. The cost to open a store can vary greatly, depending on the location.

The company has site approval rights and provides training and set-up assistance. Store owners have more latitude than some other franchises. Restaurants that are open in the morning, for example, may offer a breakfast menu.

Although the company will add some corporate-owned restaurants, its expansion will be fueled primarily by franchisees.

Mark Hansel covers retail and real estate for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4069 or at hansel@lasvegassun.com.

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