"On almost any evening, but especially during weekends, the parking lot of the Lansdowne Shoppes on Tates Creek Road is filled to overflowing. The main draw is the magnetic cluster of restaurants created by Brian McCarty and Bruce Drake, co-proprietors of Malone's, Sal's, Oscar's and Harry's, among the brands of their Bluegrass Hospitality Group. In an exclusive interview with Business Lexington, McCarty and Drake revealed that they will soon expand to the Palomar Center, a $2.5 million investment that will bring up to 170 new jobs to Lexington's south side.
"We've entered into an agreement to build our third Malone's and third Harry's, along with another Harry's Patio similar to the one we just built next to Sal's," said McCarty, who along with Drake manages nine independent restaurant brands as well as a group of Texas Roadhouse franchises in the Central Kentucky area.
The BHG restaurants will be located in approximately 7,600 square feet of space that formerly housed a Blockbuster outlet and neighboring Nadine's restaurant. Both businesses closed earlier in the summer. Renovations are to get underway in the next 30-60 days, said Drake, with plans to open for business during the first quarter of 2008. "Malone's has its tenth anniversary in March," noted McCarty.
McCarty described the Palomar Center, at the corner of busy Harrodsburg Road and Man O' War Boulevard, as an "A" location. "We just think it's an underserved market, and there's no reason why there shouldn't be more great stuff out there. There's obviously some good stiff competition out there, but there should be a lot more."
According to Webb Company Executive Vice President Ken Michul, there is plenty of untapped potential. "From South Creek Office Park out to Man O' War Boulevard is the largest concentration of suburban office space in Lexington. The occupancy rates out there run 90 percent overall, so there's a huge concentration of white collar workers. It's also the strongest corridor in Lexington. If you take all of the corridors in Lexington, the Hamburg corridor or the Tates Creek Road corridor, Richmond Road or the Harrodsburg Road corridor, there are more banking assets and banking deposits on the Harrodsburg Road corridor from South Creek Park to Man O' War than any other area in Lexington."
Palomar developer Woodford Webb said the shopping center has undergone significant change in the last 18 months with the closing of the Winn-Dixie supermarket, followed by the short-lived occupancy of the center's anchor space by an E.W. James grocery. That space will now house Lexington's second Wal-Mart Neighborhood Market. The first opened in the Tates Creek South center earlier in '07.
"It was somewhat of a surprise when Nadine's closed," said Webb. "And then right on top of that, Blockbuster with their national problems. But in the end, it was a plus because it created space where we could fit these guys in perfectly. When we had those two side-by-side tenants leave, they (BHG) were our first choice."
In addition to Malone's and Harry's, BHG brands include the Club Room at Malone's, Sal's Chop House, Regatta Seafood Grille, Oscar's, Aqua Sushi Bar and Captain Jack's Pier. The company operates a second Malone's and Harry's in the Hamburg Pavilion Mall on the city's east side and is adding a Harry's Patio, due to open in late September.
While some sectors of the restaurant industry are downsizing in reaction to market and economic pressures, McCarty said BHG has not felt the pinch. "We have not noticed any deterioration in any of our brands," said McCarty. "We're full speed ahead."
Drake said anyone interested in applying for a job at the new Palomar locations should contact him at malonespalomar@bhglex.com.
Expansion beyond the Lexington market is not in the cards for the immediate future, according to McCarty, but a presence in the reviving downtown Lexington is a possibility. "We're real anxious to see how things shake out with all the residential boom (and) how much need there is going to be for restaurants. We've got a close eye on downtown," he said.
Drake and McCarty plan a big grand opening celebration. "Maybe we'll get Coach Gillispie to cook!" McCarty mused out loud. Those interested in attending are encouraged to contact the company via e-mail at malonespalomar@bhglex.com.