Grapes owners see fruitful future

December 13, 2007
Winnipeg Free Press
Written by: Murray McNeill

Once-troubled Winnipeg chain now expanding

THE Grapes Restaurants revival is gathering steam.

Down to just two outlets a mere four years ago, the Winnipeg-based chain has scratched and clawed its way back to the size it was before it ran into financial difficulties earlier this decade.

With the official opening this weekend of a third Winnipeg franchised outlet, the chain is back up to six outlets -- five in Manitoba and one in White Rock, B.C., which opened last week.

And if everything goes according to plan, it'll be adding at least four more over the next six years.

Patrick Munroe, managing partner of PDM Hospitality LLP, the Winnipeg company that now owns the rights to the Grapes Restaurants concept in Canada, said when he and his five partners took over the two-outlet operation in 2003, their goal was to build it back up to five restaurants by the end of their first five years as owners.

"So we're ahead of our goal."

Now the goal is to have 10 franchises by 2013 -- the year they mark their 10th anniversary. Munroe has high hopes of hitting that target.

He said negotiations are underway to open a franchise in Whistler, B.C., sometime in 2008. A Vancouver businessman has also approached the company about opening one in Calgary and the owner of Winnipeg's Marlborough Hotel has the option to open one there.

Munroe, a longtime Grapes employee and manager before becoming a co-owner, said he's also fielded inquiries from prospective franchisees in Thunder Bay and the Winkler-Morden area. He also has his eye on a property in Kenora, that he thinks would be a great location for a Grapes restaurant.

"I guess we'd have to be happy (with the way things have gone)," he said. "We've been able to expand, but you can always want or hope for more."

The newest Winnipeg addition to the Grapes family is a 7,500-square-foot outlet in the Pembina Crossing retail power centre, at the corner of Pembina Highway and Bishop Grandin.

The 360-seat establishment quietly opened for business in August, but is marking its official grand opening this weekend.

Co-owner Tom McFee, who also owns the Grapes franchise at the corner of Kenaston Boulevard and Grant Avenue, said he and his partners are quite pleased with the way the new outlet has performed -- especially considering they've done little to no advertising.

"The food sales are strong, but we still have to develop a bit more of a bar business," the 20-year veteran of the restaurant business said in an interview Wednesday.

Munroe said he and his partners are taking a three-pronged approach to the expansion of the Grapes concept. They'd like to open more Grapes outlets in hotels, which is what they did with the franchise in Thompson. They'd also like to have more stand-alone outlets like the one in Steinbach, and more "destination" outlets like the one on the beach front in White Rock.

He said their approach is cautious but calculated. Before they approve any new franchise, they have to be satisfied they have the right franchisee, location and leasing arrangement. If they don't, they don't proceed.

murray.mcneill@freepress.mb.ca

Growing franchise

Here are where the six Grapes Restaurant franchises are located:

• 530 Kenaston Blvd. (Winnipeg).
• 1910 Pembina Highway (Winnipeg).
• 1747 Ellice Ave. (Winnipeg).
• Steinbach
• Thompson
• White Rock, B.C.

Here are some of the markets the chain is considering as potential sites for expansion:

• Winkler-Morden area
• Kenora
• Thunder Bay
• Calgary
• Whistler, B.C.
• Marlborough Hotel (Winnipeg)