Country Star serves up food, multimedia mix.

UNIVERSAL CITY - Visitors to Country Star Restaurant at CityWalk might believe they were walking strictly into a multimedia playground if it weren't for the steaks, barbecue ribs and french fries the patrons were eating.

The eatery boasts 100 TV monitors, some even in the restrooms, that display country music videos. Also, 10 compact-disc listening stations on which patrons can listen to top country hits are positioned throughout the place.

Furthermore, patrons can experiment with three video interactive kiosks that display interviews, biographies and music videos by country stars Reba EcEntire, Vince Gill and Crook & Chase.

West L.A.-based Country Star Restaurants Inc. is one of the several themed restaurant chains that have popped up in recent years. The company was founded in May 1993, and the CityWalk restaurant, the company's first, opened in September 1994.

Country Star reported no sales during 1993, when it had no eateries, and employed four workers. In 1994, when the 500-seat restaurant opened, it reported $1.5 million in sales and employed about 250. Last year, sales nearly quadrupled to $5.5 million and the number of employees grew to 300.

The concept's appeal

Country Star hasn't limited its sights to Universal City. It opened a freestanding, 600-seat restaurant on the Las Vegas strip, sandwiched between the MGM Grand Hotel & Theme Park and Caesars Palace, on July 2.

In addition, a third restaurant is under construction in Atlanta and is expected to open Sept. 1

Country Star is attempting to capitalize on the exploding popularity of country music and serves excellent food, sources said.

"It exudes energy when you walk in," said Bob Morris, president of Universal City-based Robert Morris Enterprises, which provides consulting services to Country Star.

In addition, the restaurants are appealing because country music is a fast-growing, nationwide phenomenon that appeals to all ages.

Thus, the eateries appeal to grandparents and children alike, said Matthew Balk, senior managing director with Josephthal, Lyon & Ross. This New York-based brokerage firm acted as the underwriter on Country Stat's second offering.

But most importantly, the food is great, said Robert Schuster, the company's founder, chairman and CEO.

Patrons play with all the gimmicks, he said, "but when they leave they're really talking about the food."

Company officials "are absolutely obsessed with the quality of the food," Balk added.

Country Star specializes in barbecued products, steak and hamburgers, Schuster said. However, the eateries also sell alternatives such as chicken, salads and pizzas. It's American comfort food, Morris said.

Schuster is a country music lover and an attorney who helped negotiate the planned purchase of 18 Planet Hollywood franchises in 1992.

An idea forms

The Planet Hollywood deal fell apart. But Schuster conjured up an idea for a country music-themed restaurant, and an underwriter he had met along the Planet Hollywood way took to the idea.

Without even a restaurant to its name, Country Star raised $9 million in a December 1993 initial public offering. The new company used the proceeds to build the CityWalk restaurant, which took off like gangbusters, Schuster said.

Country Star has raised $45 million since then, he said. It issued $15 million in stock during December 1995 and made a couple of private placements.

The stock is floating about. It opened at $5 during the IPO and is now trading at about $4 a share over the counter.

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Country Star Restaurants Inc.

Year founded: 1993 Employees then: 4 Employees now: 750 Revenues then: none Revenues now: $5.5 million