In this era of F&B casualization, many hotels have transformed their fine dining restaurants into laid-back, lower-priced venues in order to maintain customer traffic.

One place that hasn’t happened, however, is the Madison Hotel in Morristown, New Jersey, about 40 miles west of New York City. Their white tablecloth Rod’s Steak & Seafood Grille is a 60-year-old institution, receiving steady patronage from locals and corporate clientele.

Until recently, Rod’s was the only restaurant at the 186-room property, so in-house guests looking for something less expensive would often venture offsite—taking their dollars with them. Locals seeking the same would bypass the Madison completely.

Those at the hotel saw this business slipping away, but instead of responding with an overhaul turning Rod’s into a lower-priced, less luxurious option, they created a separate, 110-seat gastropub next to Rod’s called G.K.’s Red Dog Tavern—named after the founder of Rod’s, Gerard “Rod” Keller.

“We’re spending a lot less time calling taxis and sending people away,” says Scott McArthur, general manager of the Madison. “Now guests don’t have to leave the property if they want a light meal.”

Since opening in June, G.K.’s has been an instant hit with locals: approximately 70 percent of G.K.’s customers come from the surrounding area. “A large demographic out there was screaming for something casual, but also a place that didn’t sacrifice quality,” says Jeffrey Orel, the Madison’s executive chef.

Perhaps just as impressive, G.K.’s hasn’t cannibalized Rod’s business. The two venues co-exist as complementing—not competing— revenue streams, to the delight of the Madison’s owners and staff.

“We figured we’d lose maybe 11 to 16 percent of Rod’s business over to G.K.’s. But instead we have an entirely different customer base to serve, and we’ve been able to maintain our sales in Rod’s while increasing our overall sales through G.K.’s,” says Orel.

MADISON MEMOIRS
The Madison might be one of the only hotels ever constructed around a freestanding restaurant—Rod’s 1890’s Ranch House, which opened in 1951.

The Keller family owned several acres surrounding the Ranch House and in the late 1970s secured the necessary permits to build the Madison, with Rod’s as the F&B anchor for the property, opening in 1981.

“We realized the area was growing commercially,” says Richard Keller, Gerard’s son and co-owner of the Madison. “There weren’t many hotels though, so we thought it would benefit the area and our business to open one.”

In 1998, Rod’s was revamped, with its name was changed to Rod’s Steak & Seafood Grille. After renovations were complete, two rooms from the original Rod’s remained unused, and in subsequent years, they were utilized sporadically for meetings or overflow banquet space.

When the time came to build G.K.’s, “those rooms were in a great location next to the streetside entrance for Rod’s. It just fit perfectly,” says McArthur, who adds that the entire hotel—including Rod’s—stayed open during the six-month construction of G.K.’s, since most of the noisy work was done during slower business periods.

As a nod to Rod’s 1890’s Ranch House, some of the original log cabin walls were left visible in the dining area of G.K’s, and the overall design blends consistently with both Rod’s and the Madison’s lobby.

“We didn’t want to open a cold, modern restaurant. We wanted to keep some of the coziness and comfort we feel we have at this property,” says Keller.

RED DOG DINING
Orel developed the menu for G.K.’s with a focus on artisanal quality. Red Dog uses the Madison’s onsite bakery and butcher shop for nearly all of its fresh breads and meats— just like Rod’s—while other ingredients are sourced locally. “That’s pretty atypical of a pub or tavern menu,” observes Orel. So far, the turkey burger on brioche and the grilled flatbread pizzas, made with dough from the Madison’s bakery, are two of the top sellers.

Rod’s has a 60-year history in the Morristown community and has been the site of special occasion dinners, parties, and events for generations. Rather than avoiding the connection to an established fine dining restaurant when launching the casual G.K.’s, “Rod’s reputation in the area for food and service was a tremendous help in opening this new concept,” says Keller. “It’s an entirely new base of customers for us, and we only wish we had known them years ago.”

• Download G.K.’s Red Dog Tavern menu [PDF].

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