Hard Rock Plans Expansion Despite Dip in Sales, Operating Profit

ORLANDO-Hard Rock Café International Inc., founded in London 31 years ago but based in Orlando for the past 14 years, plans to open eight ventures totaling at least 500,000 sf over the next 18 months despite posting one of the worst balance sheet performances in decades in the first half of this year.

Figures disclosed by Hard Rock’s parent, Rank Group Plc of London, show the restaurant chain’s operating profit of $21.4 million was down 37% in the first six months from the same period a year ago.

Sales of $176.2 million were off 5%. Company-owned restaurants were down 6.3% in same-store sales. Merchandise revenue was off 12.3%. Much of the total lowered sales volume was at restaurants in Orlando, New York, Washington, DC and Hollywood, CA.