Gladstone's oceanfront restaurant just south of Malibu -- noted for its killer location, long waits for a table, big portions and foil doggy bags sculpted into swans and mermaids -- is getting a recession-era makeover.
Owner Richard Riordan, the former Los Angeles mayor, has hired nightclub impresario Sam Nazarian to help give the restaurant a younger, hipper and fresher feel. In fact, Riordan said he plans to sell him a part interest in the sprawling restaurant that can seat as many as 792 diners.
The Pacific Coast Highway location is Southern California's highest-grossing independent restaurant, with annual revenue topping $14 million, according to Restaurants & Institutions, an industry trade journal. But sales and profits have slid in recent years as the restaurant has fallen victim to the recession and changing consumer tastes, Riordan said.
It also has been hurt by a series of less-than-stellar reviews that have saddled the eatery with a reputation of being expensive and unimaginative.
"Cutely fashioned tinfoil-wrapped leftovers can't excuse the subpar eats, not to mention the high prices," Zagat, the restaurant rating service, said in the review of Gladstone's it published this week. "It's an old-school restaurant" hurt by the ongoing tourism slump and the recession, which has been especially tough on traditional, large and high-volume eateries, said Allison Perlik, senior editor of Restaurants & Institutions.
Market research firm NPD Group said low consumer confidence had prompted people to trade down to less-expensive restaurants and eat more meals at home. It is the worst industry slump in nearly three decades, with most segments of the food service -- from fast food to luxury dining -- seeing declines, NPD said.
Riordan -- who owns several restaurants, including the Original Pantry and Riordan's Tavern in downtown Los Angeles, and the Oak Room and Village Pantry in Pacific Palisades -- said Gladstone's still makes a profit, but barely.
The restaurant goes by several names, including Gladstone's 4 Fish and Gladstone's of Malibu (even though it is in Pacific Palisades). The official name is Gladstone's World Class Seafood.
Nazarian's company started operating the restaurant in July on a short-term management contract. Riordan said he liked the early results. Riordan describes himself as an entrepreneur and venture capitalist who likes to own restaurants.
