Rainforest Cafe

Rainforest Cafe, Wild Place to Shop and Eat, is a dynamic restaurant and retail environment which recreates a tropical rain forest. Imagine a tropical wonderland with cool mists that permeate through cascading waterfalls; crescendos of thunder and lighting; continuous tropical rain storms; huge mushroom canopies; animation featuring Tracy the Talking Tree, whimsical butterflies, crocodiles, snakes and frogs, trumpeting elephants and entertaining gorillas; all moving within the surroundings of larger than life banyan trees, with the sounds and aromas of a tropical rain forest. Rainforest Cafe, Inc. owns, operates, and licenses large, high-volume, themed restaurants/retail shops under the name "Rainforest Cafe--A Wild Place To Shop and Eat." The company has received industry recognition for its family-oriented restaurant and themed entertainment achievements. The retail area included in each unit offers items ranging from cooking sauces and personal accessories to children's toys and clothing. A majority of the merchandise carries the Rainforest Cafe brand name. The restaurants are located in the United States and abroad. But the idea man already had another plan in the works. In 1989 Schussler transformed his suburban Minneapolis home into a prototype for a rainforest motif restaurant. Erick Schonfeld wrote in a 1996 Fortune magazine article, "Three years ago, Steven Schussler was headed for either restaurant heaven or the psychiatric ward." Parrots, 150-pound tortoises, and a baboon were among the animals that at one time or another lived among the artificial waterfalls, greenery, and huge fish tanks that filled his home. But that was not the half of it--he spent more than half a million dollars in developing a simulation of the sensory experience of the rainforest. Schussler pitched the concept to stream of potential investors, including Lyle Berman, a successful casino developer and former leather retailer. Although he repeatedly declined to invest, Berman eventually hired Schussler to develop a restaurant for Grand Casinos, Inc. Backers gained during his work with Grand Casinos plus a favorable lease with the Mall of America in Bloomington, Minnesota, finally brought Berman aboard. The Rainforest Cafe was incorporated in February 1994; Berman led the private stock placement that allowed Schussler to bring his dream into reality. The doors opened for business in October 1994. Within a week the wait for a table was as much as three hours. Martin O'Dowd came on board in May 1995 to guide the store expansion. The new president and chief operation officer was a veteran of the industry, having served as director of food and beverage services with Holiday Inn Worldwide and as store manager for the Hard Rock Cafe. Berman continued in his capacity as chairman and CEO. Schussler held a position as executive vice-president. Expectations for Rainforest Cafe were elevated by the sites for new restaurants. A new unit was set to open at Walt Disney World Resort in Orlando, Florida, and a second 500-seat unit was being planned for the new Animal Kingdom opening in Epcot Center in 1998. Both were expected to do well in the high-profile areas. Other heavy-traffic sites on tap included the Trump Taj Mahal Casino and Hotel in Atlantic City and the Stratosphere in Las Vegas. More regional mall sites also were staged to open. Some analysts thought an even greater earnings potential lay on the retail side of the store. About a quarter of sales already came from the cafes' adjacent retail areas. A line of proprietary animal characters was in the works to help heighten brand identification. Analyst Rob Nicoski said in the Waters article, "The Rainforest theme is a good one for kids, and once they start developing Disney-like characters for that side of the business, there will be opportunity." The family-oriented Rainforest Cafe operated in a restaurant industry segment dominated by businesses catering to adults, such as the Hard Rock Cafe