ICYMI: Bravo Brio Closing At Least 6 Restaurants In 2017

WESTLAKE, OH - Bravo Brio, the Italian restaurant company, will be closing at least six stores in 2017, but the company did not disclose the location of which stores will be closed. The chain has restaurants in Westlake, Lyndhurst, Woodmere, Mentor, Fairlawn, and Canton.

According to the company's fourth-quarter 2016 earnings report, revenues decreased 5.2 percent versus fourth-quarter 2015, dropping from $107.3 million to $101.7 million. Comparing the full year 2016 to full year 2015 provides another sad picture for the Columbus-based restaurant chain. Revenues dropped 3.2 percent from $424 million in 2015 to $410.3 million in 2016. Restaurant sales dropped 5.2 percent over the year and restaurant-level operating profit decreased 17.7 percent to $52.2 million from $63.4 million.

To help stem the bleeding, the company said it plans to close six "underperforming restaurants" and reinvest the capital into other existing restaurants and new dining experiences. Brian O'Malley, president and CEO of Bravo Brio, said in a statement that 2016 was a "transitional year" for the company.

"Optimizing our restaurant portfolio is also critical to achieving our strategic objectives. In 2017, we plan to add banquet rooms and test other design alternatives to ensure better use of underutilized square footage within certain locations. We believe these capital reinvestments will yield incremental sales and dining occasions. We also intend to selectively close a minimum of six underperforming locations," he said in a statement.

The Columbus Dispatch reported that Bravo Brio has been suffering from sagging revenues for years. In fact, the company's stock price has fallen by more than 50 percent in just 12 months, closing at $4.00 on Tuesday.

Nationwide there are 51 Bravo restaurants and 65 Brio locations. The company says it wants to focus on private banquet rooms and catering to reverse the negative trends of the past few years. To locate additional capital, and stymie significant losses, the company will close at least six restaurants. The threat of additional restaurant closures in 2017 looms.

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