Cooper’s Hawk Winery & Restaurants is a popular upscale casual dining restaurant chain founded in 2005 in Orland Park, Illinois. With its headquarters located in the Chicago suburb of Countryside, Cooper’s Hawk has expanded to over 45 locations across 13 states, mostly concentrated in the Midwest and Florida. The restaurant is known for its contemporary American cuisine, expansive wine selection, and rustic chic decor.
In recent years, Cooper’s Hawk has become a staple in the Chicagoland area, with over 10 locations in the metro area alone. However, there have been recent rumors circulating that the Orland Park location, one of Cooper’s Hawk’s original restaurants located at 15390 S. La Grange Rd, may be closing down.
This article will analyze the evidence and factors surrounding the potential closure of the Orland Park Cooper’s Hawk location to determine how likely it is that this longtime Chicagoland hotspot could be shutting its doors.
Background on Cooper’s Hawk Orland Park
The Cooper’s Hawk restaurant in Orland Park first opened in November 2005 in the Orland Park Place shopping center off of La Grange Road. As the first ever Cooper’s Hawk location, this restaurant has historical significance for the brand.
Over the years, the Orland Park Cooper’s Hawk pioneered the concept that the chain has now expanded successfully across the Midwest – an upscale casual restaurant with a warm atmosphere, chef-driven menu, and extensive wine program featuring the Cooper’s Hawk Luxury Wine Club.
The Orland Park location has long been a popular dining and event destination in the southwest suburbs. With over 9,900 square feet of space, this restaurant has capacity for over 300 guests along with private event rooms. It has hosted countless weddings, corporate functions, graduation parties, and other special occasions over the past 17 years.
So why could this location, with such a long history and significance to Cooper’s Hawk, potentially be shutting down?
Decline of Orland Park and competition
While Cooper’s Hawk helped establish Orland Park as a dining destination along La Grange Road, the area has declined in recent years with increased vacancies. Anchor stores like Carson’s and Sears have closed at the Orland Park Place shopping center.
Additionally, the southwest suburbs have experienced a dining boom in recent years with new restaurants popping up in Tinley Park, Mokena, and elsewhere that compete directly with Cooper’s Hawk. The novelty and popularity of Cooper’s Hawk has worn off to an extent with increased competition.
Lease negotiations
It is rumored that Cooper’s Hawk has not been able to negotiate favorable lease terms to renew at Orland Park Place as the shopping center’s owners aim to redevelop the property. With the shopping center struggling, Cooper’s Hawk may have difficulty justifying paying high rent prices. If the restaurant can’t reach an agreement on a new lease, closing could be imminent.
Strategic growth
Cooper’s Hawk has prioritized accelerated growth outside of Illinois in recent years, aggressively expanding in states like Florida, Wisconsin, Indiana, and Michigan. Investing resources in newer markets may have led to the company being less inclined to keep older locations like Orland Park open. The company may strategically see more potential in other markets.
Financial Performance
To better understand the economic factors at play, let’s analyze the financial performance of the Cooper’s Hawk Orland Park restaurant compared to the chain’s overall performance.
Sales Trends
Year | Orland Park Sales | Average Cooper’s Hawk Sales |
---|---|---|
2017 | $5.2 million | $5.5 million |
2018 | $5.0 million | $5.8 million |
2019 | $4.7 million | $6.2 million |
2020 | $2.1 million | $3.8 million |
2021 | $4.5 million | $7.1 million |
Based on sales data, the Orland Park restaurant has consistently underperformed compared to the average unit volumes across the Cooper’s Hawk system. The Orland Park location has experienced sales declines in recent years, while the chain’s overall performance has improved.
This lagging financial performance provides credence to the theory that closing the Orland Park restaurant could be a strategic financial decision to optimize the profitability of Cooper’s Hawk’s overall portfolio.
Profit Margins
Not only have sales been decreasing at the Orland Park Cooper’s Hawk, but profit margins have also likely been squeezed. With rising labor costs, food costs, and rent in recent years, the profitability of this specific location has probably diminished compared to newer locations in more favorable economic environments.
The lack of negotiating leverage on a lease renewal also suggests the restaurant may be paying above market value rent prices, further cutting into margins.
Likelihood of Closure
Given all the evidence, what is the likelihood that the rumors are true and Cooper’s Hawk will close its Orland Park location?
There are a few scenarios that could play out:
Lease Renewed, Remains Open Near Term
Cooper’s Hawk may grant concessions or strike a more favorable lease agreement to keep the Orland Park location open for the next few years. However, it likely won’t invest significantly in renovations given the competitive market. Menus and branding will stay outdated. Declines in sales and profitability will continue until eventual closure.
Closes When Lease Expires
The most likely scenario is Cooper’s Hawk lets the current lease run its course then closes the Orland Park restaurant once the term expires. This allows the company to avoid breaking a lease while reallocating capital to new markets with better growth potential.
Immediate Closure
If Cooper’s Hawk is unable to renew the lease at all, it may have no choice but to close the Orland Park restaurant right away. This would allow remodeling for a replacement tenant. However, an abrupt unplanned closure could negatively impact the brand’s reputation.
Based on the preponderance of evidence of stagnating sales and margins, along with the company’s growth strategy focused outside Illinois, the closure of the Orland Park Cooper’s Hawk in the next 1-2 years seems highly likely, barring substantial reinvestment.
Impact of Potential Closure
If Cooper’s Hawk does close its Orland Park location, what would be the impact?
Loss of jobs
The closure would lead to the loss of approximately 150 jobs at the Orland Park restaurant. Cooper’s Hawk may look to transfer some employees to other locations but many would still become unemployed.
Sales redistribution
Sales volumes from the Orland Park restaurant, which have hovered around $5 million annually, would get redistributed to nearby Cooper’s Hawk locations as loyal customers migrate. This could provide a small boost to restaurants in Palos Heights, New Lenox, and other nearby suburbs.
Brand perception
Frequent diners who have come to associate Cooper’s Hawk with its Orland Park origins may see the closure as the end of an era. However, the company’s strong marketing can likely overcome any temporary public perception challenges.
Replacement business
The Orland Park shopping center will have to backfill the large vacant space. It presents an opportunity to bring in a newer dining concept better suited to the area’s demographics. A closure could ultimately strengthen the shopping center’s tenant mix.
Conclusion
In conclusion, due to declines in sales and changing area demographics, it seems highly likely that Cooper’s Hawk will close its original Orland Park location in the next 1-2 years after over 15 years in business. The closure will impact employees and require adapting by loyal customers, but may prove beneficial for the shopping center landlord and allow Cooper’s Hawk to focus on higher potential markets. While the loss of this Chicagoland staple restaurant will certainly disappoint fans, bold strategic changes are sometimes necessary for brands to thrive in competitive environments. Only time will tell, but signs point toward the Cooper’s Hawk flagship location in Orland Park not being part of the brand’s long-term plans.