Home CANADA Restaurant war shatters 3 decades of peace between Cactus Club and Earls

Restaurant war shatters 3 decades of peace between Cactus Club and Earls

0

Face of Nation : For 30 years, Cactus Club and Earls have occupied a similar space in the hearts and stomachs of B.C. diners. The chains, which have spread across Canada and into the U.S., have peacefully coexisted in the “premium casual dining” market, competing for the same customers without stepping on each other’s toes.

That shouldn’t be surprising. Cactus Club was founded by two former Earls servers, and today the majority of its shares are owned by the Fuller family, which also owns Earls. But the era of friendly competition is over.

Lawsuits filed in B.C. Supreme Court over the last year reveal a bitter fight between the two chains. The relationship has become so acrimonious that the Fullers are calling for the company that runs Cactus Club to be completely dissolved.

Court documents include allegations that Cactus Club president Richard Jaffray has been misusing the restaurant’s funds to pay for private jets and art for his home. There are claims that the Fullers have used Cactus Club’s confidential financial information to give an unfair edge to upstart competitor Joey.

Retail consultant David Ian Gray of DIG360 describes the characters behind Vancouver’s most successful restaurant chains as the cast of an “old-school, prime-time soap opera.”

He says the falling out between the Fullers and Jaffray has been a long time coming.

“These are iconic families with a lot of success, and there’s a lot of ego that goes with it,” he told CBC.

“Behind the scenes, we’ve seen a lot of friction for a long time, and it’s probably inevitable that something’s bubbled up.”