Toby Keith eatery kicks off its Tulsa expansion for Hal Smith

Journal Record, The (Oklahoma City), Jun 6, 2007 by Kirby Lee Davis

Cherokee Casino Resort officials crowed Tuesday over landing Toby Keith's I Love This Bar & Grill. A number of women flocked around the country music superstar after Tuesday's press conference.

But opening Oklahoma's second Toby Keith restaurant, slated with completing the casino's $125 million expansion late next year, represents just the start of Hal Smith Restaurant Group's growth plans for Tulsa. Smith, who will partner three more times with Keith in extending that chain, intends to add seven more Tulsa-area restaurants over the next three years.

The Norman-based restaurateur also plots four more for the Oklahoma City area, but with 12 of his restaurants already brewing coffee there - more than a quarter of the 44 Hal Smith operates in seven states - he said the Oklahoma City market is close to saturated.

The opposite is true for the Sooner State's second-largest city. With seven running in Tulsa, including the Redrock Canyon Grill launched in March, Smith said that market provides the best returns for his firm. It represents about a fifth of its $130 million revenue last year, up 22 percent from 2005. Same-store sales rose 6 to 8 percent.

Eyes may linger on the Keith's coming restaurant not because of its star power, but also its performance. Bricktown's 12,000-square- foot flagship, the first in the three-restaurant Toby Keith chain, garnered $6 million revenue its first year and matched that in its second, said Proprietor Ross Crain. Since the Oklahoma City eatery just added lunch, he expects third-year sales will grow.

But Hal Smith Restaurant Group's growth also focuses on Louie's Sports Grill. The Norman firm operates one entry of that marquee in Tulsa and seven in the Oklahoma City area. Smith intends to add five more in the Tulsa market and three in Oklahoma City.

Over the next three years, Smith also has a third Charleston's set for Tulsa and a second Redrock. These will join his other operations: Mahogany of Tulsa steakhouse, Ted's Cafe Escondido and Krispy Kreme.

Adding a sixth Charleston's rounds out his Oklahoma City expansion plans.

Construction in these two cities will represent two-thirds of all the restaurants Hal Smith intends to add over the next three years.

With an average cost of $3 million per site, Smith said that promises creation of 1,000 jobs in the Tulsa marketplace.

Since Keith's estimated 10,000-square-foot Cherokee casino restaurant remains in the design phase, Crain could not disclose its construction costs. He doubted it would equal the Oklahoma City eatery's $4 million price tag since the Cherokee facility will be part of the overall casino expansion. But its employment should be similar, ranging from 80 to 100, with seating of about 400.

While the stylish honky-tonk promises a concert venue and a festive decor unique to Tulsa, Keith noted its menu also should draw diners hungry for steak, chicken fried steak, and his restaurant's staple fried baloney sandwich. Such items from his childhood cuisine proved popular even at the Harrah's Vegas location, which Keith said tracks in the city's top five restaurants each quarter despite averaging only $12 plates.

"You have to somehow create something they can't get anywhere else," he said.

Cherokee Nation Enterprises Chief Executive David Stewart said the Toby Keith bar and grill fits nicely with the concert hall, convention center, 200 executive hotel suites and other restaurants coming in the 21-story addition to the Catoosa casino.

"You can see why I'm smiling here," he said.

That project promises to add 450 full-time jobs to the resort, lifting total employment to 2,100. That represents almost a third of all Cherokee Nation employment, said Principal Chief Chad Smith.

Over the last eight years, he pointed out that business growth allowed for a 10-fold increase in the Cherokee Nation's spending for health care, education and other needs. Adding the Toby Keith name brings another dimension to that, and another building block to the Cherokee Nation's prosperity.

"I have no idea what effect it will have," said Stewart. "We just know it's going to be good."

Stewart noted that Keith contracted with national casino operator Harrah's for establishing his restaurant chain, and then sought out the Cherokees.

"The fact that he chose to put in his restaurant here tells us we're on the right track," said Stewart.

Keith said he and Smith studied the Cherokee casinos in detail before going forward.

"We're very selective in our process of where we put these," said Keith. "This is mostly a national chain, so to be able to put another one of these back into Oklahoma is very important.

"But the truth is, nobody likes to party like Cherokees. They've been doing it a lot longer than we have," he said. "I look forward to coming back up here and having a cold one with you guys."