Hard Rock Cafe International, Inc. is a chain of theme restaurants founded in 1971 by Americans Isaac Tigrett and Peter Morton in London. In 1979, the cafe began covering its walls with rock and roll memorabilia, a tradition which expanded to others in the chain. In 2007, Hard Rock was sold to the Seminole Tribe of Florida, and is headquartered in Orlando, Florida. Currently, there are 175 Hard Rock locations in 53 countries with the largest in Orlando.
History
Restaurants
The first Hard Rock Cafe (HRC) opened on 14 June 1971, in Piccadilly, London, United Kingdom under the ownership of young Americans Peter Morton and Isaac Tigrett. Hard Rock initially had an eclectic decor but it later started to display memorabilia. Hard Rock has amassed one of the largest collections of rock and roll memorabilia in the world. The chain began to expand worldwide in 1982 with locations in (among others) Toronto, Los Angeles, San Francisco, Chicago, Paris and Berlin. Hard Rock Cafe locations in the United States vary from smaller, more tourist driven markets (Biloxi, Destin, Gatlinburg, Key West, etc.) to large metropolises (Houston, Philadelphia, New York, Chicago, Boston, Washington DC, etc.). Hard Rock Cafe typically does not franchise cafe locations in the United States. All US cafes are corporate owned and operated, except for cafes in Tampa and Four Winds casino. However, in the transition of the Las Vegas Hard Rock Hotel property originally owned and then later sold to Rank by founder Peter Morton, Peter retained hotel naming rights West of the Mississippi. When Peter Morton sold his Las Vegas Hard Rock Hotel to the Morgans Group, he also sold those naming rights. Which then gave rise to two U.S. franchise Hotels (without cafes) in Albuquerque and Tulsa. The Albuquerque hotel no longer pays for the Hard Rock rights and reverted to its former name in June 2013. More hotels franchised off from Morgan’s are planned for Sioux City and Vancouver.
In 1990, The Rank Group, a London-based leisure company, acquired Mecca Leisure Group and continued expansion of the concept in its geographic territory. Rank went on to purchase Hard Rock America from Peter Morton as well as Hard Rock Canada from Nick Bitove. After the completion of these acquisitions, Rank gained worldwide control of the brand. In March 2007, the Seminole Tribe of Florida acquired Hard Rock Cafe International, Inc. and other related entities from Rank for US$965 million. In 2008, anonymous members of the wait staff criticized the business because of its practice of paying them less than half the official minimum wage in the UK, with the business allocating tips to staff to bring their salaries within the law. Most customers, it was argued, do not realize that they are subsidizing a low wage when they give the tip.
Music memorabilia
HRC is known for its collection of rock and roll memorabilia. The cafes solicit donations of music memorabilia but also purchase a number of items at auctions around the world, including autographed guitars, costumes from world tours and rare photographs; these are often to be found mounted on cafe walls. The collection began in 1979 with an un-signed Red Fender Lead II guitar from Eric Clapton, who was a regular at the first restaurant in London. Clapton wanted management to hang the guitar over his regular seat in order to lay claim to that spot, and they obliged. This prompted Pete Townshend of The Who to give one of his guitars, also un-signed with the note “Mine’s as good as his! Love, Pete.” Hard Rock’s archive includes over 70,000 items and was briefly displayed in a Hard Rock museum named “The Vault” in Orlando, Florida from January 2003 until September 2004. After the closure, items were disbursed to various restaurant locations. The London Vault remains open and free to visitors, located near the original cafe. In 2005, Deep Purple launched its new album Rapture of the Deep in Hard Rock Cafe London. This show at the release party itself was released as a DVD.
The Hard Rock Café is also in possession of a Bedford VAL 6 axle coach used in the 1967 film The Beatles Magical Mystery Tour. The vehicle was completely refurbished after filming.
Expansion into other businesses
Casinos and hotels
In 1995, Peter Morton spent $80 million to open the Hard Rock Hotel near the Las Vegas Strip in Las Vegas, Nevada. A subsequent $100 million expansion in 1999 nearly doubled the hotel’s capacity.
In May 2006, Morton sold the Hard Rock Hotel & Casino, Las Vegas to Morgans Hotel Group for $770 million, including the rights to the Hard Rock Hotel brand west of the Mississippi, including Texas, California, Australia and Vancouver, British Columbia. The hotel began another expansion in 2007 at a cost of $750 million. The project added 875 rooms in two towers and expanded meeting space. In March 2011, Morgans surrendered control of the property to partner Brookfield Asset Management citing the high debt on the property in the face of the economic downturn.
Today, the Seminole Tribe of Florida owns and operates all units except the Las Vegas and Tulsa properties. New properties franchised off of Morgan’s are planned for Sioux City and Vancouver. In 2004, Hard Rock International and Sol Melia Hotels and Resorts launched Lifestar Hoteles España SL, a joint venture that manages Europe’s first Hard Rock Hotel in Madrid. The other joint venture hotels are in Chicago, New York and San Diego (the San Diego property includes Hard Rock condominiums). Hard Rock also operates hotels and resorts in Orlando, Florida (a joint venture with Loews Hotels); Bali, Indonesia; and Pattaya, Thailand, (a joint venture with Ong Beng Seng/Hotel Properties Limited). Hard Rock International continues to expand internationally (including hotels, casinos, resorts, and condominiums) through several joint ventures (Becker Ventures, Ong Beng Seng/Hotel Properties Limited and Loews Hotels), including hotels in Chicago, Bali, Orlando, Penang, San Diego, Singapore, and planned openings in Abu Dhabi, Cancun, Dubai, Hungary, Panama, Punta Cana and Vallarta – as well as hotel-casinos in Hollywood, Florida; Tampa, Florida; Biloxi, Mississippi; Las Vegas, Nevada; and Tulsa Catoosa, Oklahoma. The Hotel Zoso in Palm Springs, California is being converted into a 160-room Hard Rock Hotel, with the transition expected to be completed by 2014. A location in Atlantic City, New Jersey was planned but canceled.
International locations include
- Hard Rock Casino, at The Printworks in Manchester, United Kingdom (closed)
- Hard Rock Hotel, at the City of Dreams in Macau
- Hard Rock Hotel, at the Resorts World Sentosa in Singapore
- Hard Rock Hotel Penang
- Hard Rock Casino in Vancouver, Canada
- Hard Rock Hotel and Casino in Punta Cana, Dominican Republic
- Hard Rock Hotel in Panama Megapolis, Panama City, Panama
Hard Rock Park
Hard Rock Cafe International announced in March 2006 that it licensed the “Hard Rock” name to HRP Myrtle Beach Operations, LLC, to design, build, and operate a $400 million 150-acre (0.61 km2) theme park called Hard Rock Park. Hard Rock Park opened on April 15, 2008 in Myrtle Beach, South Carolina. The park was expected to draw an estimated 30,000 visitors per day, promised to create more than 3,000 jobs, and was billed as the largest single investment in South Carolina history. It planned to feature a large concert arena and six zones with more than 40 attractions. HRP Myrtle Beach Operations, LLC, filed for Chapter 11 on September 25, 2008. The company hoped to re-open in 2009 after restructuring. On January 2, 2009 after failing to attract a buyer with a minimum $35 million bid for over 2 months, Hard Rock Park asked a Delaware Bankruptcy Court to convert the filing to Chapter 7 (triggering immediate liquidation of assets to pay off creditors) and closing the park.
New owners renamed the venue Freestyle Music Park and planned to reopen retaining a music-theme but, without the Hard Rock name by Memorial Day, 2009. The park only operated one additional year and never reopened due to poor attendance.
Acquisition by the Seminole Tribe of Florida
On December 7, 2006, Rank sold its Hard Rock business to the Seminole Tribe of Florida for $965 million. Included in the deal were 124 Hard Rock Cafes, four Hard Rock Hotels, two Hard Rock Hotel and Casino Hotels, two Hard Rock Live! concert venues, and stakes in three unbranded hotels. Rank retained the Hard Rock Casino in London, and rebranded it the G Casino Piccadilly. The Hard Rock Hotel and Casino in Las Vegas was also not part of the deal, as it was sold by Peter Morton to Morgans Hotel Group in May 2006. The final takeover was mired in controversy, due to a payment clause in a contract with one casino developer, Power Plant Entertainment. Power Plant and the Seminoles announced a settlement in April 2007 which both sides called equitable.
On January 8, 2007, Rank shareholders approved the Seminoles’ $965 million offer. The Tribe announced it finalized the deal on March 11, 2007.
On June 22, 2008, the Seminole Hard Rock Hotel & Casino Hollywood began “Vegas-style” table gambling in addition to the Class II slots already in operation. To win approval for the table games, which were barred under Florida law, the Seminole Tribe paid the State of Florida $100 million as part of a 25-year pact signed by Governor Charlie Crist. On July 3, 2008, the Florida Supreme Court ruled that the governor’s agreement was unconstitutional, but table games continue to operate because the Federal Department of the Interior approved the now-invalid pact with the state.
