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Siblings Revitalize Dad's Hospitality Business The Melman siblings opened several bars and restaurants to revitalize their father's 42-year-old hospitality company Lettuce Entertain You Enterprises to appeal to younger clientele.

By Jennifer Wang

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Jerrod, Molly and RJ Melman were all in their 20s when they opened their first restaurant, Hub 51, in 2008. It was the initial attempt by Chicago hospitality group Lettuce Entertain You Enterprises (LEYE)--co-founded in 1971 by their father, Richard Melman--to appeal to a young-adult clientele. "What we brought to the table was a more youthful energy, a bar-focused, nightlife-driven division," Jerrod says.

Now a new group of establishments that began with Hub 51, headed by that next generation of Melmans, comprises several properties: Sub 51, Hub's lower-level lounge; casual French restaurant Paris Club; Studio Paris; RPM Italian; and BBQ joint Bub City--all in Chicago; plus M Street Kitchen and two Stella Barra Pizzeria locations in Los Angeles.

The siblings' approach was to focus on "gaps and opportunities" in LEYE's existing businesses. "We evaluated the hours and saw that at 11 p.m. most of the company's restaurants were shutting down, but we wanted to be gearing up for the second phase of the night," Jerrod says. After meeting the owners of popular Vegas nightclub Tao, they took a gamble on starting a venue that would capture the interest of patrons coming out of dinner. In June 2011 they opened Studio Paris, an indoor-outdoor nightclub that now hosts the official after-party of the Lollapalooza music festival.