Talk:Valle's Steak House

Why this article?

Valle’s was a New England institution for decades. People went there for lunch, dinner, birthdays, anniversaries, dates, and other functions. The service was prompt and courteous, the portions were generous and the prices were reasonable. For many people, including me, it was also a place to work and make friends. I worked in the kitchen of the Braintree Valle’s from 1974 to 1978; part time during the school year, full time during the summer. My brother worked there as well and, of course, various high school and college friends also worked there. It was a great place to be and I certainly learned a lot about the restaurant business and most importantly, learned a lot about people.

The restaurant staff was huge, well over 150 employees. On a busy night about 30-40 worked in the kitchen and given that many of them were young men in their late teens, there was never a shortage of comedy, high jinks and mischief! Naturally both former employees and customers remember Valle’s fondly. Which is why I developed this page, to help folks maintain a connection to that wonderful past.

I currently live in Virginia, just outside of Washington D.C. Until a few years ago there was a former Valle’s restaurant in Springfield, Virginia, about 10 miles south of D.C. The restaurant was still a steak house, but mostly functioned as a large bar, concert and dance hall. It was torn down in the early 2000s to make way for an improved I-95 interchange. Before it came down, my brother and I spent a few hours in there enjoying cocktails, checking out the crowd, and soaking up the vibe.

Very Well Written Article! I actually grew up near Springfield VA and I remember my parents taking me to the Valle's for dinner in the 1980s. In the late late 1980s, the restaurant became a Blackees House of Beef. And then eventually it closed. 2601:140:8100:FEC0:191A:EF92:10B:F7CD (talk) 20:25, 18 February 2021 (UTC)

How to make this page better

Fill in the blanks from 1982-1991

From the time the Valle family sold their controlling share to the private investor group led by Arthur Hanson, to the demise of the company, much happened. Exactly what, however, remains a mystery.

Thoughts...

• In 1977, when Donald Valle died, the federal estate tax rate was 70% and the asset exclusion was only $100,000. Assuming the corporation was valued by the government at $30 million, and Valle owned 66% of the firm ($19.8m), that would leave a federal estate tax bill of $14 million (.7 x 19.8).

• Likely, the estate had very little cash on hand, its primary assets being Valle's stock. Thus the only way for the estate to pay the bill would be to sell stock. We know for a fact that is exactly what happened. Richard Valle, who I imagine was the executor, sold the estates' controlling shares for $18 million which enabled the estate to pay off the feds + any state inheritance taxes that were owed. (Any remaining funds in the estate would then be distributed in accordance with Donald Valle's will).

• This transaction by itself didn't necessarily doom the business, but the buyers of the stock were other corporate officials (Arthur Hanson, et al) who had to borrow money to finance the purchase. At the time (1982) the prime interest rate (if you're under the age of 40, hold on tight to your seat) was 16% !! Simple math (.16 x 17.5) gives you an annual interest bill alone of about $2.8m. In 1982 the country was in a recession, inflation was in double digits and people weren't spending much on dining out. Not surprisingly, Valle's was barely making a profit back then and that's why the new corporate chiefs starting selling the restaurants (which were valued at about $1-2m each (building and land)), because they had to pay off the bank loans. I suspect that they were hoping for an economic turnaround that would give them enough cash to pay the loans without selling off the business, but that never happened. Or perhaps their plan all along was to liquidate at favorable terms. We don’t know and we may never know. Regardless, in 1991 the last three restaurants closed and that was the end of Valle's Steak House.

• During the past couple of months, I discovered that the former manager of the Daytona Beach restaurant is now a free lance columnist and food blogger and he believes the $14 million dollar tax bill to the feds is spot on.

• Some people believe that Valle's went bankrupt, but that's exactly what they didn't do. They met their obligations by liquidating buildings and real estate. Presumably, they did so hoping they would turn the corner and continue in business but that outcome didn't happen.

• Since Richard Valle retired on Cape Cod it's reasonable to believe he and other family members (e.g., Judith Valle) walked away with a good deal of money. As well, when I worked at Valle's in the late 1970s the rumor was that Richard Valle's heart wasn't really in the business after his father died. No doubt that influenced the outcome.

• Wikipedia's rules state that all entries must be notable and the references must be credible and verifiable. Since I can't verify anything above, it's not in the article. After the 1982 buy-out, there's hardly any public information about Valle's. Unless somebody interviews Judith Valle (who I believe is still alive) we'll probably never know exactly what happened between 1982-1991.

• Final comment on Don Valle's death: If Donald Valle died today as opposed to 1977 the landscape would be vastly different. First, the top federal estate tax rate today is 40% vice 70% in 1977. Second, the first $5m in assets are now excluded, vice $100k in 1977. As a result, the estate tax if Donald Valle died today would be about $6m (19.8 - 5.0 (*.4) vice $14m in 1977. With a current prime rate of only 3.25% (vice 16%) servicing a $6m loan would be about $200k/year vice $3m/year in 1977. Even if we inflate the estate's holdings from $17.5 million to $48 million (matching the rise in the consumer price index 1977-2012) the tax would only be $17.2m which financed at a 3.25% rate would cost $560k/year in interest.

Provide a list of all Valle's Steak Houses to include years of operation and current building status

I'm working on it. Any help would be appreciated!! EdJF (talk) 22:28, 26 March 2013 (UTC)