Blog for Rural America

The Center for Rural Affairs, a private, non-profit organization, is working to strengthen small businesses, family farms and ranches, and rural communities. Permission to reprint items from this web log is hereby granted, on the condition that clear credit is given to the original source of the material. If the blog provides information for a story, please let us know by sending an email to johnc@cfra.org.

Thursday, February 15, 2007

Ranch Steakhouse Drops Natural Beef

Partners split over dropping products free of hormones, antibiotics

by Jim Bainbridge, Colorad Springs Gazette

Mike Callicrate, the face of the Ranch Steakhouse and Market since it opened in October 2005, has sold his minority partnership in the restaurant because of a disagreement over how the business should be run. Ranch Steakhouse was started as a showcase for the no-hormone, no-antibiotic brand of meats sold by Callicrate’s Ranch Foods Direct Co., and while it developed a loyal following — sales of $2.5 million last year — majority owner Neil McMurry wanted to try a new direction. McMurry is buying his meats from industry giant Iowa Beef Processors (IBP), a division of Tyson Foods.

“My partner and I didn’t agree on the concept for the restaurant,” Callicrate said. “Essentially, he owned the building and I was unwilling to compromise on our company’s pledge and purpose, so the relationship has ended.” The last meals with Ranch Foods Direct meat were served on Valentine’s Day, and the Ranch Food Direct market just inside the front entrance at 575 Garden of the Gods Road closed Thursday, soon to be replaced by a bar.

The restaurant will undergo a name change — it may be announced as early as today, according to manager Steve Abeyta — and has placed notices on each table letting customers know about the change of meat providers. “I can’t tell you what it felt like to walk into the cooler at the restaurant and see IBP beef there,” Callicrate said. “These are the people I’ve been fighting for years.”

Callicrate, 55, was the lead plaintiff in a class-action antitrust lawsuit against Tyson Foods-IBP a decade ago — the first such challenge to a major meatpacker since 1921 — and has been an ardent opponent of big agribusiness all of his career. Callicrate said he attempted to buy the majority interest in the restaurant, but that McMurry, 83, “was not willing to work with me. It is a very big disappointment. I put a lot of money into the business, not to mention time and effort.” McMurry was not available for comment Thursday. Terms of the buyout have not been finalized.

Callicrate said that McMurry once believed in the Ranch Steakhouse concept, but thought that his advisers had convinced him that he could do better “with less expensive meats.” “I think these guys see a place like Outback Steakhouse with the parking lot full,” Callicrate said, “and don’t see the value of buying a better product.” Callicrate will continue to operate his other Ranch Foods Direct stores and online at www.ranchfoodsdirect.com.

Post a comment here or contact John Crabtree, johnc@cfra.org

Center for Rural Affairs
Values. Worth. Action.

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6 Comments:

  • At 1:20 PM, Anonymous Anonymous said…

    I met Mike Callicrate once, he like to hear himself talk a little too much, but he's a good businessman - his former partner sound like an idiot
    Whiting, Iowa

     
  • At 8:39 AM, Anonymous Anonymous said…

    who in the hell wants to eat the crap they serve at Outback when you could have some actual beef?

     
  • At 9:55 AM, Anonymous Anonymous said…

    Good for Mike Callicrate for sticking to his guns! I think he deserves alot of credit for disconnecting himself from a project that doesn't believe in providing goog quality meat. I think there are alot of business owners that would give up on what they believe in and cash in on that.
    I will never understand how people can say they've had a great steak at Outback or Texas Roadhouse. You have not lived until you've eaten beef at a small steakhouse that buys beef that has been raised and slaughtered locally.

     
  • At 12:50 PM, Anonymous Anonymous said…

    We live in Littleton and never thought twice to drive to the Spgs for a delicious meal at the Ranch. This is a true loss to a great steak house. Hopefully, Mike can find a way to open another restaurant serving his deliclious meat. Meanwhile, we will pass on "cheaper" meat.

     
  • At 2:33 PM, Anonymous Costa Rica Cheap Land for Sale said…

    Hello I want to congratulate to them by its site of the Web of the excellent looks like entertained and very good very to me it elaborated. I invite them to that they explore a little on my Web site

     
  • At 8:03 AM, Anonymous Winstrol said…

    That was a right decision!

     

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