Bluegrass Hospitality Group

What Bluegrass Hospitality Group does

Bluegrass Hospitality Group (BHG) is a privately held multi-concept restaurant operator founded in 1998 by Brian McCarty and Bruce Drake, headquartered in Lexington, Kentucky. The company operates six distinct restaurant brands — Malone's (premium USDA Prime steakhouse), Malone's Prime Events & Receptions (private dining and catering), Harry's American Bar & Grill (elevated bar and patio concept), Drake's (casual sports bar with the largest footprint across seven states), Aqua Sushi (sushi sub-brand deployed across Malone's, Harry's, and Drake's), and OBC Kitchen (craft cocktail and bourbon-focused restaurant) — supported by 3,000+ team members across 20+ locations in Kentucky, Tennessee, Indiana, Illinois, Missouri, North Carolina, and Alabama.

The business generates revenue through four primary streams: dine-in food and beverage across all concepts, catering and private events at Malone's Prime venues, direct-to-consumer retail sales of Malone's Prime beef steaks via a national e-commerce storefront (shop.bluegrasshospitality.com), and a multi-tiered gift card program including standard, corporate, and GiveBHG charitable variants. Pricing is largely transaction-based with menu-driven check variation across price points, supplemented by corporate gift card volume bonuses (5-15%) and unredeemed gift card balances that function as working-capital float.

The operating technology stack is composed of third-party SaaS rather than proprietary infrastructure: Paytronix handles email marketing and loyalty data, Mailchimp supports email campaign transmission, Hotjar provides web analytics, Cognito Forms powers intake forms, and UPS handles nationwide shipping for the steak retail line. Customer retention is driven by the BHG/Drake's Rewards loyalty program, the BHG Concierge Club VIP offering, and the GiveBHG charitable giving program, while customer acquisition leverages online ordering, promotional campaigns such as Summer Passport, and an active Instagram presence. Malone's holds industry recognition as one of the Great Steak Houses of North America, anchored by a 100% USDA Prime beef commitment with wet-aging of minimum 21 days.

Name

Bluegrass Hospitality Group

Legal name

Bluegrass Hospitality Group LLC

Website

https://bluegrasshospitality.com

Company type

Private

Founded year

1998

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Bluegrass Hospitality Group is a privately held Lexington, Kentucky-based multi-concept restaurant operator founded in 1998, running 20+ locations across seven states under six brands — Malone's steakhouses, Harry's, Drake's, Aqua Sushi, OBC Kitchen, and Malone's Prime Events — and serving consumer diners plus corporate event and retail steak customers.

Ownership category

akta.pro rank

Product category

Multi-concept Restaurant Hospitality

NAICS

Full-Service Restaurants (722511), Limited-Service Restaurants (722513), Special Food Services (7223), Meat Retailers (44524)

SIC

Retail-Eating & Drinking Places (5810), Sausages & Other Prepared Meat Products (2013)

akta.pro primary industry

Steakhouses & Seafood Restaurants (THAFACAE)

akta.pro secondary industries

Fine Dining Restaurants (THAFACAA), Specialty & Dietary Catering (Vegan, Kosher, Halal, Allergy-Friendly) (HSACAGAH), Butcher Shops & Meat Markets (CRAHAHAB)

Keywords

• Restaurant hospitality group
• Steakhouse dining
• Private event catering
• Online food ordering
• Retail beef sales

Headquarters

HQ city

Lexington

HQ country

United States

HQ region

North America

Offices23 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Supply Chain, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Dine-in Restaurant Sales: Revenue from food and beverage sales across all restaurant concepts including Malone's steakhouses, Harry's American Bar & Grill, Drake's, Aqua Sushi, and OBC Kitchen. Includes lunch, dinner, brunch, and bar sales.
2. Catering Services: Large pan catering and event catering services for private dining at Malone's Prime Events & Receptions locations and carryout catering from all concepts.
3. Retail Steak Sales: Online and in-restaurant sales of Malone's Prime USDA beef steaks (filet, ribeye, NY strip, sirloin) for at-home preparation. Steaks ship fresh in polystyrene containers across the continental US.
4. Gift Cards and Corporate Programs: Sale of gift cards (BHG and Drake's brands), corporate gift card programs with volume discounts (5-15% bonus), and the GiveBHG charitable giving program where 20% of gift card purchases support designated non-profits.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels6 records

Core offering

Bluegrass Hospitality Group operates a portfolio of six restaurant concepts (Malone's premium steakhouses serving 100% USDA Prime beef, Malone's Prime Events & Receptions for private dining and catering, Harry's American Bar & Grill, Drake's casual sports bars, Aqua Sushi, and OBC Kitchen) primarily across Kentucky, Tennessee, and adjacent states. In addition to dine-in and online carryout/catering ordering, the company directly retails Malone's Prime beef steaks via a national e-commerce storefront and sells consumer and corporate gift cards across the portfolio.

Product overview

Bluegrass Hospitality Group (BHG) is a hospitality company co-founded by Brian McCarty and Bruce Drake in 1998, operating 6 distinct restaurant brands and a suite of retail and loyalty products. The portfolio includes: Malone's (premium steakhouses serving hand-cut USDA Prime beef, also recognized as one of the Great Steak Houses of North America); Malone's Prime Events & Receptions (private event and catering venues); Harry's American Bar & Grill (year-round patio bar with elevated bar food, signature cocktails, mini burgers, and sushi); Drake's (casual sports bar chain with beer burgers, sushi, and live music — the largest footprint brand with locations across 7 states); Aqua Sushi (sushi offering available at all Malone's, Harry's, and Drake's locations); and OBC Kitchen (craft cocktail and bourbon-focused restaurant). Beyond dining, BHG operates an online store (shop.bluegrasshospitality.com) selling retail steaks (Malone's Butcher Shop Steaks), gift cards (BHG, Drake's, Corporate, and GiveBHG charitable variants), and maintains a loyalty/rewards program (BHG/Drake's Rewards). The company employs over 3,000 team members and is headquartered in Lexington, Kentucky.

Differentiator

Problem solved

Functional benefit

Brands

• BHG Private Selection: Private label bourbon retail program offering curated bourbon bottles
• Butcher Shop Steaks
• GiveBHG
• BHG Rewards
• Summer Passport

Products and services

• Malone's Steakhouse Premium steakhouse concept serving hand-cut USDA Prime steaks wet-aged a minimum of 21 days, fresh seafood, sushi, and full bar service. Recognized as one of the Great Steak Houses of North America. Operates dine-in locations in Lexington (3), Louisville, and Chattanooga for consumers seeking special-occasion and business meal experiences.
• Malone's Prime Events & Receptions Private dining and banquet venue offering catering and event hosting for business meetings, weddings, rehearsal dinners, birthdays, and corporate events. Offers multiple room options, AV equipment, and customizable menus at locations in Lexington and Louisville.
• Harry's American Bar & Grill Year-round patio bar and grill serving elevated bar favorites, signature cocktails, hand-selected wines, mini burgers, and Aqua Sushi. Targets consumers seeking a light, airy atmosphere for casual social dining and business-friendly meetings across Lexington, Louisville, Chattanooga, and an upcoming Richmond location.
• Drake's Casual Sports Bar Casual sports bar chain featuring beer burgers, sushi, live music, and a family-friendly atmosphere. The largest BHG brand by footprint, with locations across Kentucky, Tennessee, Indiana, Illinois, Missouri, North Carolina, and Alabama serving consumers seeking accessible casual dining.
• OBC Kitchen Restaurant concept featuring craft cocktails, an extensive bourbon menu, and dinner and brunch service. Located in Lexington, Kentucky for consumers seeking an upscale casual experience with a strong beverage program.
• Aqua Sushi Made-to-order sushi concept serving rare flavors and classics using ultra-modern preparation methods and fresh ingredients, offered alongside the menu at Malone's, Harry's, and Drake's locations.
• Malone's Butcher Shop Steaks Direct-to-consumer retail steak program selling Malone's Prime USDA Prime beef steaks (filet mignon, bone-in filet, ribeye, bone-in ribeye, New York strip, sirloin, and Gold/Platinum value packs) online or for in-restaurant pickup. Steaks are vacuum-sealed and shipped fresh in polystyrene containers via UPS, arriving within 2 days across the continental US.
• BHG Gift Cards Physical and electronic gift cards redeemable at Malone's, Drake's, Harry's, Malone's Prime Events & Receptions, Aqua Sushi, and OBC Kitchen. Available in denominations from $10 to $250 for consumer gifting and personal use.
• Drake's Gift Cards Physical and electronic gift cards redeemable at all Drake's and BHG restaurant locations for dine-in and carry-out, available in denominations from $10 to $250.
• Corporate Gift Cards Bulk gift card program for businesses offering tiered bonus certificates: 5% bonus on $500–$1,000, 10% on $1,001–$2,500, and 15% on $2,501+. Available for both BHG and Drake's brands for employee rewards, client gifting, and incentive use.
• GiveBHG Charitable Gift Cards Charitable gift card program allowing customers to purchase BHG gift cards online and designate 20% of the card value to a registered non-profit organization. Includes physical, electronic, and Drake's variants to support fundraising through dining purchases.
• BHG/Drake's Rewards Loyalty Program Loyalty rewards program offering points for purchases across all BHG restaurant brands, accessible at mybhgrewards.com. Enables cross-brand customer retention and repeat visit tracking.
• BHG Online Ordering Online ordering platform that enables guests to place carryout and catering orders from participating Malone's, Drake's, Harry's, and OBC Kitchen locations across multiple markets for off-premise consumption.

Quantifiable outcome

• Named one of the Great Steak Houses of North America

Named customers1 record

Segments4 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Partnerships

Four partnerships are on record, tiered minor and core.

• Non-profit Organizations (GiveBHG Program)minorGTM or Marketing PartnerBHG partners with charitable organizations through the GiveBHG program, allowing supporters to purchase gift cards and designate 20% of the purchase value to their favorite non-profit. The program enables non-profits to raise money through BHG gift card sales.
• PaytronixcoreTechnology or IntegrationThird-party email partner handling BHG email marketing communications. Privacy policy bound to Paytronix's privacy standards. Also provides SMS opt-in data management for rewards program.
• UPSminorOthersUsed for shipping fresh steaks to customers. Steaks guaranteed to arrive within 2 days in polystyrene containers with ice packs.
• Cognito FormscoreTechnology or IntegrationPowers multiple BHG forms including Concierge Club account updates, event request forms, marketing requests, and charity donation requests.

Scale indicators5 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Bloomin' Brands: Multi-concept casual/fine dining operator (Outback Steakhouse, Carrabba's, Bonefish Grill, Fleming's). Highly comparable multi-brand restaurant group structure with steakhouse exposure via Outback and Fleming's overlapping Malone's category.
• Darden Restaurants: Multi-concept full-service restaurant operator (Olive Garden, LongHorn Steakhouse, The Capital Grille, Cheddar's). Directly comparable multi-brand portfolio model at much larger scale, with steakhouse concepts (LongHorn, Capital Grille) overlapping Malone's positioning.
• Bonefish Grill: Upscale-casual seafood concept under Bloomin' Brands. Overlaps BHG's seafood and sushi positioning at Malone's and Aqua Sushi in similar Southeast/Midwest markets, though broader portfolio parent.

Direct peers

• Texas Roadhouse: Casual steakhouse chain with comparable USDA-choice/prime steakhouse positioning, family dining focus, and multi-state footprint. Most direct comparable on the Malone's concept given overlapping premium casual steakhouse category.
• J. Alexander's Holdings: Multi-concept upscale casual dining operator (J. Alexander's, Stoney River, Redlands Grill, Grille 39). Comparable multi-brand structure to BHG with premium-casual positioning, scratch kitchens, and bar programs overlapping Harry's and OBC Kitchen.
• Fleming's Prime Steakhouse: Premium steakhouse under Bloomin' Brands serving USDA Prime steaks with private dining and wine program. Closest concept-level comparable to Malone's premium steakhouse positioning outside the Darden portfolio.
• LongHorn Steakhouse: Steakhouse-focused concept under Darden Restaurants serving USDA choice/prime steaks at mid-premium price points. Directly competes with Malone's on occasion-driven steakhouse occasions in overlapping Southeast markets.
• The Capital Grille: Premium steakhouse under Darden Restaurants known for dry-aged steaks, private dining, and event services. Closest premium comparable to Malone's and Malone's Prime Events & Receptions on the high-end of the steakhouse category.
• Ruth's Chris Steak House: Premium steakhouse chain now owned by Darden, serving USDA Prime steaks at fine-dining price points. Direct competitor to Malone's in the premium steakhouse segment with overlapping event/private dining offerings.
• O'Charley's Restaurant + Bar: Multi-concept casual dining operator (O'Charley's, Ninety Nine Restaurant, Village Inn) serving the same value-casual segment as Drake's with comparable footprint in Kentucky-adjacent and Midwest markets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Instagraminstagram.com/bhg_restaurants
• Xx.com/bhgrestaurants
• Facebookfacebook.com/bluegrasshospitality
• LinkedInlinkedin.com/company/bluegrass-hospitality-group

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Bluegrass Hospitality Group