Allen Bernstein, who built Morton's, dies

Allen J. Bernstein, who showed that high-end restaurants can succeed as chains by expanding Morton's of Chicago from nine steakhouses in 1989 to 69 worldwide in 2006, has died. He was 65.

He died on Nov. 1 at North Shore University Hospital in Manhasset after an extended illness, according to Castle Harlan Inc., a New York-based private-equity firm that backed his ventures. He was a resident of Manhasset.

Once described by Nation's Restaurant News as "a prolific deal-maker," Bernstein wrote his college thesis on restaurant branding and then made a career of it.

Bernstein, as chairman and chief executive, positioned Morton's on the leading edge of a wave of upscale, expense-account steakhouses that opened new outlets around the United States, including competitors Ruth's Chris Steak House and Smith & Wollensky.

"We created this segment," Bernstein told the Orange County Register in 2005, when Morton's was expanding into lunch service and happy hours. "Flattery is very nice -- all these other people have come after us."

John Castle, chairman and chief executive of Castle Harlan, said in an interview that Morton's quieted doubts about the viability of the "high-end chain."

Morton's was publicly traded from 1992 to 2002, when Castle Harlan spent $71 million to outbid Carl Icahn for ownership. It went public again in 2006, raising $161 million in a stock offering.

Castle Harlan owned 30 percent of the company as of March 25, according to data compiled by Bloomberg.

Allen Jay Bernstein was born on Nov. 22, 1945, in Brooklyn. He graduated in 1968 from the University of Miami with a degree in marketing. He began buying franchises in restaurant chains such as Hardee's, Long John Silver's, Wendy's, Godfather's Pizza and Le Peep, according to Castle Harlan.

A 1988 story in Inc. magazine, noting Bernstein's passion for chain restaurants, described him as "full of smiles and enthusiasm, with a waistline that testifies to frequent product sampling."

At a memorial service in Manhattan , Castle said, friends and family members recalled the unique experience of eating at a restaurant with Bernstein.

By meal's end, "you would have tasted every item on the menu," Castle said.