Published: May 10, 2008 11:29 pm         

Closing its doors

Owner says profits have been down for years.

When Ponderosa Steakhouse in Logansport closes its doors for the last time on Tuesday evening, 40 people will be out of a job.

The restaurant, which opened in its location on George Street in the 1970s, has had its share of financial problems, especially in the past four years.

“We have lost a lot of money,” said owner Dan Adams, who has worked in the business for 34 years. “This business hasn’t been profitable for the past three and a half to four years. Our business is at 60 percent of what it was about six years ago.”

When Adams purchased the local Ponderosa in September 2001, the sale agreement included the LaPorte location as well, which was in financial trouble at the time.

In 2006, Adams closed the LaPorte location and started to reinvest in the Logansport restaurant, but declining patronage and increased operating costs hurt the bottom line.

“I needed to raise the prices,” said Adams. “But when the customers complain the prices are high and you aren’t covering the bills, that’s a bad combination.”

About two years ago, Adams started George Street Catering as a side project, which helped to fund Ponderosa and has kept it going for the past two years, he said.

With hopes of saving his restaurant, Adams tried to purchase the building six months ago to remodel it, but failed to secure the financing.

Adams also said he owed money for the franchise to the Ponderosa corporation, which recently decided to file a lawsuit and sealed the restaurant’s fate.

“It’s funny, people don’t understand what it takes a restaurant to be successful,” said Adams. Pointing to a table of empty chairs, he added, “But what costs the most is that right there.”

While Adams would like to see his catering business continue, he said he isn’t sure what the future may hold.

Referring to Ponderosa as his “dream restaurant,” Adams said the decision to close the restaurant was difficult.

“When I close this on Tuesday, I don’t have a job,” said Adams. “The most difficult part is leaving the people.”

Customers have been sharing their condolences with the restaurant owner. Some of his regular customers cried when they found out the news, he added. Adams expressed his thanks to all of his customers and employees.

Still, Adams said he hopes some good can come from closing Ponderosa.

“I hope by us leaving, it will strengthen other businesses locally,” he said.

Denise Forsberg can be reached at (574) 732-5151 or via e-mail at denise.forsberg@pharostribune.com