Restaurant merger announced here

By RICHARD HANNERS

Whitefish Pilot

The merger of three downtown Whitefish restaurants with a successful statewide pizza chain has resulted in the largest restaurant business to make its beginnings in Montana.

Headquartered in Whitefish, Glacier Restaurant Group LLC will be a privately-held company with William Foley as chairman and CEO and Alan Stinson as president. Stinson is a partner of Foley's in a number of businesses and will act as GRG's chief financial officer.

Steve Shuel, president and CEO of MacKenzie River Pizza Co., and the pizza company's single stockholder prior to the merger, will hold stock in GRG and will continue to run MacKenzie River Pizza as its president.

A similar arrangement will fall to Doug McNicoll, one of two partners in the Mambo Italiano restaurant in Whitefish. McNicoll will hold stock in GRG and will continue to be president of CM Brands, which is the franchisor company for the Ciao Mambo concept.

Foley said his interest in the restaurant industry grew through investments in CKE Restaurants, which owns the Hardee's, Carl's Jr., Green Burrito and other chains. He said he sold his stock in CKE about two years ago.

Foley started the upscale Corner-house Grill at the corner of Second Street and Central Avenue in 2004 and became an owner in the Craggy Range restaurant and bar on Central Avenue last year.

But Foley's roots in the restaurant business go back much earlier — to his first job as a busboy at the Andrews Air Force Base golf club. He said he thought the cooks were lazy, so he started cooking in the kitchen.

Shuel said he first met McNicoll while eating "at one of my favorite restaurants" — Mambo Italiano. As the two restaurant owners talked, one thing led to another, and McNicoll eventually introduced Shuel to Foley.

"MacKenzie River Pizza was not for sale," Shuel said, "but a synergistic opportunity appeared that benefited everyone."

Shuel said he joined MacKenzie River about a year after it was founded in 1993 in Bozeman.

"I've been working hard at it for 12 years now," he said. "I personally bootstrapped the company, put a lot on the line. And we've seen a lot of success. Now it's time to move forward, not only for myself but for the company as well."

Shuel said he's 54 now, but many of his senior managers are 20 years younger.

"So it will be good for the company to grow," he said.

With 12 restaurants and 625 employees in Montana, the number of good Montana opportunities are becoming limited, Shuel said, so future growth will likely be in places like Idaho and eastern Washington.

"We're looking at possibly three to five additional restaurants in the next 24-36 months," he said.

Shuel said MacKenzie River will keep its headquarters in Bozeman.

"I try to eliminate all the financial, administrative and human resources duties at the restaurants so the managers can concentrate on the restaurant end of the business," he said.

Mambo Italiano opened its doors at its current location in April 2000. The successful restaurant is often packed and can serve 300 dinners a night, McNicoll said.

McNicoll said a franchise restaurant is slated for Missoula in the first quarter of 2007, and three to five corporate restaurants, wholly-owned by GRG, could open regionwide this year.

"We've had talks with interested franchisees other than Missoula," McNicoll said.

McNicoll was excited by the opportunities offered by being part of the largest restaurant company to start in Montana. The move will help his employees, too.

"There will be lots of opportunities for upward mobility in the new company," he said. "This is a growing business."

McNicoll said merging the restaurants will "make each component stronger." The company will also benefit from the experience and expertise that Foley brings with him, he said.

"It's about jobs — we hired people today," McNicoll said last Monday, adding that being part of GRG will enable him to compete with bigger restaurants.

For more information, visit Mambo Italiano online at www.ciaomambo.com or MacKenzie River Pizza Co. at http://mackenzieriverpizza.com.