ALBANY — The Brown Derby will close after dinner service on Saturday, Aug. 25 — a little more than one month shy of the downtown restaurant's fourth birthday.

"We never met revenue projections from Day 1," says Bobby Mallozzi, whose family-owned Mallozzi Group opened what was then known as The Hollywood Brown Derby on Sept. 29, 2008, right at the beginning of the worldwide economic meltdown.

"In hindsight it was perhaps the worst time to be opening a business in the last 70 years," he said.

The stylishly designed eatery, featuring original caricatures from the namesake Hollywood restaurant as well as reproductions created by Mallozzi, went through a number of chefs, general managers and culinary styles as the Mallozzis repeatedly worked to capture an audience downtown, in a location just off North Pearl Street and across from the Palace Theatre. The restaurant tried lunch buffets, a lunch shuttle for office workers, prix-fixe specials and other promotions, but failed to perform financially, Mallozzi said.

"I don't think we can be faulted for lack of effort," Mallozzi said. "But ultimately it became a burden for us financially."

The Mallozzi Group is negotiating with the building's landlord over the remaining years on the Brown Derby lease, Mallozzi said.

While he does not believe another restaurateur would continue the Brown Derby concept, Mallozzi said, "The opportunity now presents itself for someone that has a desire to run a beautiful restaurant at a great location to step into a relatively turnkey operation."

Despite recent discussion about the state of downtown Albany after the closure of Jillian's, located about four blocks south, Mallozzi said, "I have nothing but good things to say about being in downtown Albany. This is a business-friendly city, and the fact the Brown Derby is closing is definitely not a reflection on downtown. Ultimately, as the operators of the restaurant, we are the only people responsible for the outcome of the business."

Employees will be offered positions, and gift cards for the Brown Derby can be redeemed at any of the six Mallozzi Group properties: Villa Italia in downtown Schenectady, Treviso in Albany at the Italian American Center in Albany, The Clubhouse at Western Turnpike Golf Course in Guilderland, Colonie Golf and Country Club in Voorheesville, Mallozzi's in Rotterdam and The Belvedere Hotel in Rotterdam.

Mallozzi said he expects to announce a new Mallozzi Group project within a week. Sources say it is an Italian restaurant in downtown Schenectady.

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