Restaurateur extraordinaire Rich Melman has a new breadwinner-his own bakery.
With very little fanfare, Melman`s Lettuce Entertain You Enterprises Inc. last November opened the Corner Bakery adjacent to Maggiano`s Little Italy, one of the newer restaurants in the 31-unit chain.
Corner Bakery at Grand and Clark wasn`t an overnight success. Most bakeries, in fact, are having difficulty competing in what has been a lousy business environment.
But in recent months, Corner Bakery has come under a head of steam and even Melman likes its performance now, though he says he`s ”not quite ecstatic about it yet,” adding: ”We`re learning a lot . . . and we`re beginning to make some money.”
”It has potential, and I`m massaging it,” says this restaurant wunderkind, who has masterminded some of the zaniest and most original themed eateries around. Massaging obviously means that he is refining the concept, tinkering with the menu, even looking at expansion.
Corner Bakery, a 2,200-square-foot operation where goodies are baked on the premises, started out with bread, 10 to 15 types baked daily, then sandwiches, muffins and breakfast items, selling retail and to food service. There is a limited seating area.
With a product that Melman doesn`t mind saying is outstanding, Lettuce Entertain You is eyeing at least three other locations for Corner Bakery outlets, though the formats may differ.
Lettuce Entertain You is taking over the Water Tower space that previously housed several Levy Organization restaurants, including Chestnut Street Grill and Hillary`s. In that space with a 10-year lease beginning in October, Lettuce Entertain You will put in restaurants, and Melman is leaning toward a Corner Bakery there as well.
Additionally, he`s talking to real estate officials at Union Station for a mini Corner Bakery, perhaps a kiosk. And he told this column he`s shopping the suburbs for a Corner Bakery.
Early on, Corner Bakery was even supplying United Airlines` in-flight food service with some of its baked goods, but the unit wasn`t geared up to handle this business and there is no relationship currently.
However, Melman has been building a quality account list supplying food service that includes not only his restaurants but competitors, including Levy`s Bistro 110 (”they do a fine job,” he says), Nick`s Fishmarket and the Intercontinental Hotel`s Boulevard Room.
Admittedly, Corner Bakery`s products are pricey, but there is demand, consumers willing to queue up early in the morning. Just check out the crowd next time you wander by this River North location.
Breadwinner or not, Melman hasn`t forgotten his core business. Restaurants such as Eccentric, Shaw`s Crab House, Hat Dance, Scoozi and Tucci Milan generate an estimated $100 million-plus in annual sales, a collection that has been the envy of the industry.
He`s got at least two new restaurants on the front burner, a Tucci Bennuch patented after a unit here that will surface in the Mall of Americas, touted as the world`s largest shopping mall, in Bloomington, Minn., just outside Minneapolis, and a joint venture in that area as well.
– Bob Kirkpatrick, a Leo burnett Co. senior VP-media director who has had media responsibility for the Procter & Gamble domestoic account, is being promoted to the agency`s London office to become European media director, overseeing all media operations on the continent. Kirkpatrick will assume his new post in late August or early September.
– Minneapolis-based Haworth Group, a marketing-media services firm, opens a Chicago office next month headed by former DDB Needham Chicago executive William F. ”Bill” Heimann Jr. Heimann was senior VP and director of media operations at the agency. Haworth clients include Dayton Hudson`s Marshall Field`s and Target Stores, Super Valu Stores` Cub Foods and American Hawaii Cruises. Haworth billings last year were $90 million.
On the move: Judy Touhy promoted to Midwest advertising sales manager of Meredith`s Midwest Living magazine. . . . Mark Williams promoted to senior VP at Bozell Chicago. . . . Marcia Iacobucci promoted to associate creative director in the retail and promotion services department at DDB Needham Chicago.
Strictly Personal: Birthday greetings to Wally Steiner, Leo Levin, Dick Sterk, David Stein (”Talking to the Boss” newspaper) and Lori Lilonsky.
Leo Burnett Co. is one of the few ad agencies in town without summer hours-most agencies and a number of firms close at noon Fridays. So the giant Chicago ad agency is rewarding its troops (more than 2,350) with a four-day 4th of July weekend, closing both Friday (also a holiday for virtually all businesses) and Monday. Burnett will do the same thing over Labor Day.
Susan Baron, publisher of Reader`s Digest Association`s American Health, also was named group publisher of its special-interest magazines, including The Family Handyman and New Choices for Retirement Living. She continues to report to Roger Coleman, publisher of Digest`s U.S. edition, who also headed up the special-interest publications.
