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The Riese Organization
The Riese Organization (/ris/) is a privately held investment company based in New York City that is heavily invested in real estate and in franchised fast food and casual dining restaurants in Manhattan.
Irving and Murray Riese, two brothers born in Harlem, opened their first restaurant, a luncheonette in midtown Manhattan, in 1940, for about $8,500. Five years later, the brothers sold the luncheonette for $38,500, and they used the profit to start a business of flipping troubled restaurant properties after quickly refurbishing them. Murray told The New York Times in 1983 that they had bought and sold as many as 25 restaurants in one month. The brothers incorporated National Restaurants Management, Inc., to acquire and operate restaurants, after a court had ruled in 1953 that the Riese brothers were real estate brokers, and that they could not claim lower capital gains tax rates on restaurants that they had held for less than three years.
In 1972, the Riese Organization had about 150 restaurants in its portfolio, making it the United States's largest privately owned restaurant business. By 1989, the company had about 300 restaurants.
The Riese Organization is credited with introducing the food court concept to New York in the 1980s. In 1982, Marriott Corporation, which owned the Roy Rogers restaurant chain, sued Riese for planning to colocate a Roy Rogers with a Pizza Hut and a Häagen-Dazs ice cream shop in one Times Square location; after the Riese family won, they opened additional food courts with as many as eight brands in one location. By the late 1980s, the Riese Organization had licenses to run operations for 28 franchises in New York City, most of them on an exclusive basis.
Irving Riese died in 1990. His brother Murray Riese died in 1995. Murray's son Dennis operated the business until 1988, when he left the firm; he returned in 1991, and became the chief executive after Murray's death.
The company took a $140 million loan from the Bank of Tokyo–Mitsubishi Trust Company, with 14 properties as collateral; during the 1990s, the company sold properties, closed restaurants, and changed its business strategy to improve profitability. National Restaurants Management filed for chapter 11 bankruptcy protection in 1999; the Riese Organization, as a subsidiary, was not affected, and reorganization in 2000 placed National Restaurants under the Riese Organization.
In 2013, Dennis Riese told Crain's New York Business that his company "will be much less known for fast food," by opening more casual dining eateries with table service. At that time, the company had about 75 restaurants, and owned 25 buildings, collectively generating $100 million in annual revenue. About 60 of the company's restaurants, contributing about one-third of Riese's revenue, were fast food restaurants; Dennis told Crain's that he did not intend to increase his fast food holdings.
Dennis Riese said in 2019 that he intends to wind down his company’s restaurant business due to rising wages, changing labor laws, and changes in the retail landscape. He announced an investment in Loudpack, a recreational marijuana business based in California, which he sees as an opportunity for growth.
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The Riese Organization
The Riese Organization (/ris/) is a privately held investment company based in New York City that is heavily invested in real estate and in franchised fast food and casual dining restaurants in Manhattan.
Irving and Murray Riese, two brothers born in Harlem, opened their first restaurant, a luncheonette in midtown Manhattan, in 1940, for about $8,500. Five years later, the brothers sold the luncheonette for $38,500, and they used the profit to start a business of flipping troubled restaurant properties after quickly refurbishing them. Murray told The New York Times in 1983 that they had bought and sold as many as 25 restaurants in one month. The brothers incorporated National Restaurants Management, Inc., to acquire and operate restaurants, after a court had ruled in 1953 that the Riese brothers were real estate brokers, and that they could not claim lower capital gains tax rates on restaurants that they had held for less than three years.
In 1972, the Riese Organization had about 150 restaurants in its portfolio, making it the United States's largest privately owned restaurant business. By 1989, the company had about 300 restaurants.
The Riese Organization is credited with introducing the food court concept to New York in the 1980s. In 1982, Marriott Corporation, which owned the Roy Rogers restaurant chain, sued Riese for planning to colocate a Roy Rogers with a Pizza Hut and a Häagen-Dazs ice cream shop in one Times Square location; after the Riese family won, they opened additional food courts with as many as eight brands in one location. By the late 1980s, the Riese Organization had licenses to run operations for 28 franchises in New York City, most of them on an exclusive basis.
Irving Riese died in 1990. His brother Murray Riese died in 1995. Murray's son Dennis operated the business until 1988, when he left the firm; he returned in 1991, and became the chief executive after Murray's death.
The company took a $140 million loan from the Bank of Tokyo–Mitsubishi Trust Company, with 14 properties as collateral; during the 1990s, the company sold properties, closed restaurants, and changed its business strategy to improve profitability. National Restaurants Management filed for chapter 11 bankruptcy protection in 1999; the Riese Organization, as a subsidiary, was not affected, and reorganization in 2000 placed National Restaurants under the Riese Organization.
In 2013, Dennis Riese told Crain's New York Business that his company "will be much less known for fast food," by opening more casual dining eateries with table service. At that time, the company had about 75 restaurants, and owned 25 buildings, collectively generating $100 million in annual revenue. About 60 of the company's restaurants, contributing about one-third of Riese's revenue, were fast food restaurants; Dennis told Crain's that he did not intend to increase his fast food holdings.
Dennis Riese said in 2019 that he intends to wind down his company’s restaurant business due to rising wages, changing labor laws, and changes in the retail landscape. He announced an investment in Loudpack, a recreational marijuana business based in California, which he sees as an opportunity for growth.