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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Menu Suit Adds Spice To Restaurant War Half Shell On My Menu. Gee, How

The bag of shredded documents could contain the secrets of famous chefs, recipes that cost more than $1 million and took years to perfect.

A thrilling new spy novel? Nope. It’s the tale of two Spokane restaurants hustling for customers near the Arena.

Clinkerdagger Restaurant’s parent company is suing Finnerty’s at the Arena, claiming the new restaurant stole its top-secret culinary cache.

Finnerty’s owner, Tom Finnerty, said the lawsuit is preposterous and that this is merely a case of a large corporation using its power to destroy a much smaller competitor.

“Plain and simple, it’s just the big guys versus the little guys,” Finnerty said. “They’re trying to intimidate us.”

Among the cast in this tale are two former Clinkerdagger employees who now work for Finnerty’s. Ryan Collins and Robert Watson are accused of stealing the closely guarded secrets and passing them along to the new restaurant.

By opening a new restaurant near the Arena, Finnerty’s is cutting into a lucrative market. Since the Arena opened last year, nearby restaurants have seen a huge boost in business on event nights.

A red flag went up for Clinkerdagger general manager Attila Szabo on July 9 when he was given a hand-written copy of Finnerty’s proposed menu. Szabo would not identify the person who slipped him the menu.

“As I read through it, it became apparent to me that a lot of the items were similar to or identical to a lot of our items,” Szabo said.

So he called Restaurants Unlimited, the parent company of Clinkerdagger, to alert officials. A lawsuit was initiated.

When Collins realized he was being sued, he panicked and called Clinkerdagger to find out what was going on, Szabo said.

“When I asked Collins if any Restaurants Unlimited recipes were being used to produce Finnerty’s new menu, his response was, ‘Yeah, but I didn’t take anything,” Szabo said in court documents.

Finnerty said Collins only admitted that Clinkerdagger’s recipes were being used because he was scared. “He’s a young kid who was very nervous and didn’t understand the position he was being put into.”

Szabo arranged a meeting with Finnerty and Watson, the other former Clinkerdagger employee, who is head chef at the new restaurant.

According to court documents, Szabo asked during the meeting whether they had copies of Restaurants Unlimited’s recipes and Watson pointed to a garbage basket full of shredded documents. Szabo said he asked if he could have the documents.

“So I left with the bag full of shredded documents and a copy of the menu,” Szabo said.

Finnerty denies the shredded papers were copies of Clinkerdagger recipes, but wouldn’t say what they were.

Szabo said in court documents that he was told Collins shredded the recipes because he was scared.

Spy tales aside, Restaurants Unlimited is taking the alleged theft seriously.

The company sought a temporary restraining order to prevent Finnerty’s from opening. It was denied Aug. 15, because the new restaurant hadn’t opened, said an attorney for Restaurants Unlimited.

No one will know until the restaurant opens today and its menu is unveiled whether the lawsuit will go forward.

“We have no objection to their serving prime rib. If they have taken and copied our recipe for prime rib, we do object,” said Thomas Theisen, attorney for Restaurants Unlimited.

Tom Finnerty counters that his menu items were created by head chef Watson and that although “there are some items that probably originated with his experience at RUI,” Finnerty’s did not copy Clinkerdagger’s menu.

“I’m going to have oysters on the half shell on my menu. Gee, how unique. I’m going to have roasted prime rib. Gee, how unique,” Finnerty said.

Restaurants Unlimited’s recipes were developed over 20 years at a cost of more than $1 million, the company says. Famous chefs such as Wolfgang Puck have helped the company develop its recipes.

Each recipe contains information the company considers trade secrets, including ingredients, amounts and preparation methods. The company guards the secrets carefully and requires anyone who views the recipe books to sign a nondisclosure agreement. The company also requires employees to sign statements acknowledging the recipes are confidential.

The statements Watson and Collins signed are among the court documents.

Clinkerdagger’s parent corporation owns 26 restaurants nationwide. Brothers Tom and Brian Finnerty own Finnerty’s Red Lion Sports Bar and Barbecue at 126 N. Division.

Finnerty’s at the Arena is their second restaurant, and is intended to be an upscale dining location catering to the Arena crowd. Prices will be comparable to Clinkerdagger, court documents say.

About two city blocks separate the two restaurants. Clinkerdagger is at the corner of Mallon and Howard, in The Flour Mill. Finnerty’s at the Arena is at Boone and Howard, its sign easily visible from Clinkerdagger’s entrance.

“We welcome (Finnerty’s) into the restaurant business. Our objection is them using our recipes to compete,” said Richard Giboney, vice president of development for Restaurants Unlimited.

, DataTimes MEMO: This sidebar appeared with the story: RECIPES FOR A LAWSUIT Restaurants Unlimited alleges in its lawsuit that Finnerty’s not only copied its recipes, but lifted phrases and descriptions - verbatim - from its secret recipe books. Among the examples cited in court documents are: The confidential recipe book includes Pork Tenderloin Alla Roasta Romana, coined by Restaurants Unlimited for Palomino’s, its Italian restaurant in Seattle. Finnerty’s proposed menu includes an item titled Pork Alla Roasta Romana. Tom Finnerty said that’s just a way of saying pork “roasted in an Italian fashion. It’s like saying medium-rare steak.” Finnerty’s has a menu item called New York Steak with Port Antonio Butter. Although Finnerty said Port Antonio butter is a “Caribbean style butter that everyone uses,” several local restaurateurs never heard of it. Richard Giboney, vice president for development for Restaurants Unlimited, said Port Antonio Butter was named after a city in Jamaica, for a Jamaican theme promotion. Finnerty’s also proposed a menu item called “Orchid’s Tangy Noodles.” That item was created for Restaurants Unlimited by Barbara Tropp, a food consultant, and named after Tropp, whose Chinese nickname is “orchid.” The item’s name was only listed in the secret recipe books, not on the menus, Giboney said.

This sidebar appeared with the story: RECIPES FOR A LAWSUIT Restaurants Unlimited alleges in its lawsuit that Finnerty’s not only copied its recipes, but lifted phrases and descriptions - verbatim - from its secret recipe books. Among the examples cited in court documents are: The confidential recipe book includes Pork Tenderloin Alla Roasta Romana, coined by Restaurants Unlimited for Palomino’s, its Italian restaurant in Seattle. Finnerty’s proposed menu includes an item titled Pork Alla Roasta Romana. Tom Finnerty said that’s just a way of saying pork “roasted in an Italian fashion. It’s like saying medium-rare steak.” Finnerty’s has a menu item called New York Steak with Port Antonio Butter. Although Finnerty said Port Antonio butter is a “Caribbean style butter that everyone uses,” several local restaurateurs never heard of it. Richard Giboney, vice president for development for Restaurants Unlimited, said Port Antonio Butter was named after a city in Jamaica, for a Jamaican theme promotion. Finnerty’s also proposed a menu item called “Orchid’s Tangy Noodles.” That item was created for Restaurants Unlimited by Barbara Tropp, a food consultant, and named after Tropp, whose Chinese nickname is “orchid.” The item’s name was only listed in the secret recipe books, not on the menus, Giboney said.