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SCOTT BARANCIKThe steakhouse chain, which owns Bonefish Grill, will pay for co-founder Chris Parker's ownership interest and royalty payments.
TAMPA - Outback Steakhouse expects to pay the heirs of Bonefish Grill co-founder Chris Parker $10-million for his interest in the seafood chain.
Parker died in January in a high-speed boating accident in Tampa Bay.
According to a filing with federal securities regulators, Outback, which owns the Bonefish chain, will pay approximately $1-million for Parker's future royalty payments and $9-million for his ownership interest. Parker and Tim Curci founded the St. Petersburg restaurant in January 2000.
Outback general counsel Joe Kadow declined to identify Parker's heirs. "That's their business," he said Monday. Attempts to reach Parker's parents Monday were unsuccessful.
The Tampa chain's annual report to the Securities and Exchange Commission also revealed plans for what may be the biggest price increase in years. Outback said it expects to raise steakhouse menu prices 2.5 percent during the first half of 2004 and another 1.5 percent during the latter half.
By comparison, menu prices at the steakhouse chain grew 0.8 percent in 2003, 1.6 percent in 2002, 2.8 percent in 2001 and 3.1 percent in 2000.
Outback is planning smaller price increases for several of its other chains in 2004: 2.5 percent at Bonefish Grill, 2 percent at Fleming's Prime Steakhouse and Wine Bar and 1 percent at Carrabba's Italian Grill. No increase is planned for Roy's, the company's Hawaiian concept.
Outback's regulatory filing did not explain the reason behind the increases.
But the filing did say Outback expects "unfavorable beef pricing" this year versus 2003. Chief financial officer Bob Merritt was in San Diego at the company's annual conference on Monday and could not be reached.
In other Outback news, a code of ethics adopted Jan. 28 prohibits the company's senior management team from making further personal investments in its franchisees. Pre-existing investments are not affected.
"I think it's arguable whether it's a conflict of interest," general counsel Kadow said. "We just think it's a better practice."
Under the terms of a 50/50 joint venture signed in 2001, Bonefish co-founders Parker and Curci received a one-time payment of $1.5-million, undisclosed salaries and a 1 percent royalty on future adjusted gross sales.
Outback also invested $7.5-million in the pair's home-grown concept. The deal came less than two years after the first Bonefish Grill opened on Fourth Street N in St. Petersburg.
Outback had 37 Bonefish locations in 10 states as of Dec. 31. It plans to open 30 to 35 more this year.
- Scott Barancik can be reached at barancik@sptimes.com or 727893-8751.