By MATT BLOIS
The O’Charley’s restaurant in the Maryland Farms area of Brentwood has closed.
This is the second O’Charley’s restaurant in the area to close in the past several weeks. A restaurant in Spring Hill closed earlier this month.
Charley Watkins opened the first O’Charley’s in 1971, across the street from Vanderbilt University in Nashville. The company has more than 200 locations in 17 states.
O’Charley’s is owned by the Nashville food services company American Blue Ribbon Holdings, which owns several other restaurant chains such as 99 Restaurant and Pub, Bakers Square and Village Inn.
American Blue Ribbon Holdings is a subsidiary of the public, investment company Cannae Holdings. Cannae is a majority owner of American Blue Ribbon Holdings.
In November, Cannae reported that sales at established O’Charley’s had declined by 4.7 percent in the third quarter of 2018 compared to the same period last year. Sales at O’Charley’s have declined slightly every quarter since the beginning of 2016.
William Foley, the Chairman of Cannae, said in a press release that the entire fast casual dining industry is struggling.
“ABRH’s management team continues to implement a broad range of initiatives designed to reduce expenses, increase productivity, improve customer satisfaction and drive traffic. We continue to see much opportunity to expand margins, which currently lags peers and are a clear priority,” Williams said, according to the press release.
O’Charley’s has a franchise business model. Franchisees pay O’Charley’s a $10,000 development fee and a $40,000 licensing fee.
After opening, franchisees pay a royalty fee of four percent of weekly sales. In addition they contribute 0.5 percent of sales to marketing and two percent to local store advertising, according to the company’s website.