Mon, Jul 06, 2009
Famous Sam's waitress Chris Lopez, in black, is the spectator while customer Loretta Gaudette plays a video game during a slow lunch hour. This 29th Street site sparked the chain.
James gregg / arizona daily star
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Business

first famous sam's May Close

Smoking ban blamed in restaurant slump

By Christie Smythe
Arizona daily Star
Tucson, Arizona | Published: 06.21.2007
Now that the smoke has cleared from bars and lounges in Tucson, many owners of those establishments say smokers are going elsewhere, too.
Sales have dropped anywhere from 10 to 20 percent since the statewide smoking ban took May 1, said owners of a number of bars, including several Famous Sam's, a chain that has long catered to blue-collar workers.
The owner of the tavern that inspired the Famous Sam's chain — the original Sam's Tavern at 4801 E. 29th St. — said he might be forced to close the bar, in part because of the ban.
Gary Zimbler, who bought the business and the property about two years ago, said he plans to close the bar June 30 unless he can extract some relief from the chain's corporate parent, Overland Park, Kan.-based TWA Restaurant Group.
Since taking over, Zimbler has discovered the building requires at least $80,000 in upgrades to meet city requirements — making the dip in happy-hour sales more difficult to swallow.
"This is the straw that broke the camel's back — the smoking ban," Zimbler said.
Zimbler and owners of other Tucson bars said they are noticing a few new customers now that there is no smoking.
But they said they're not getting enough new business to make up for losses in their after-work crowd — who often liked to light up while unwinding at the bar. Many of those regulars are now either spending less time in the bar and ordering fewer drinks, or are going straight home, bar owners said.
"We definitely have some regulars who don't come here as often" including some "who decided to build little bars in their houses," said Cathy Warner, co-owner of Boondocks Lounge, 3306 N. First Ave.
Tucson and Pima County previously prohibited smoking in most restaurants but allowed it in bars.
McMahon's Prime Steakhouse, 2959 N. Swan Road which formerly allowed smoking in a secluded cigar lounge, has also felt the effects of the ban, said Metro Restaurants owner Bob McMahon. McMahon said he is planning to outfit the patio outside the bar with a partial roof, air conditioning and heaters to help entice more cigar smokers to come to the bar and smoke outside.
"People are are angry. I hear that almost every day," he said, adding that cigar aficionados often traveled long distances to smoke at McMahon's.
McMahon and Warner said they are seeing some signs of smokers beginning to return, but Zimbler and other Famous Sam's franchise owners said their customers have been more stubborn.
"We're suffering. it's pretty rough," said Connie Gardner, co-owner of Famous Sam's at 3620 N. First Ave.. "Tucson does not adapt well with change."
Brian Studdard, chief executive of TWA Restaurant Group, said he expects business conditions will eventually improve for Famous Sam's franchisees. A smoke-free environment might help the chain attract a new customer base, including families, he said. The chain has 27 franchise locations in Arizona, with 11 in Tucson, according to its Web site.
"We think based on the history (of smoking bans) in other states, that eventually that business comes back and will be stronger," he said. "The franchisees and the business owners have to kind of weather the storm for a long time."
Studdard said he is sorry to see the original Famous Sam's close, but there's not much the company can do to keep it open.
"Obviously the area does very well for Famous Sam's," he said. "We hate to see it leave that territory."
Zimbler said he hoped to receive some abatement in his franchise royalties to help him reduce his costs. He said the code violations were the result of previous owners who did not keep up the building.
"I'm dealing with a franchise that's less supportive than I hoped it would be," he said.
While eating lunch Wednesday at the bar, longtime regular David Rooyakkers, 48, said he was sorry to hear it is closing. Rooyakkers, an electrical contractor, said he's been visiting the 29th Street location for more than 20 years.
"I'm in disbelief," he said.
● Contact reporter Christie Smythe at 434-4083 or csmythe@azstarnet.com.