Kirk Vogel hopes Walnut Grill's deviled eggs with bacon and a slice of jalapeno will be a hit with diners outside of Pittsburgh.

The stuffed eggs popular at picnics appeared on Walnut Grill's menu this summer and are being copied by other restaurants just like the grilled flatbread pizza chef Randy Simpson said he introduced eight years ago.

Adding unique dishes that set a trend is one of the ways the four-restaurant chain has tried to differentiate itself from its competition in an industry that is struggling to find ways to appeal to fickle diners.

“That's one of the things that sets us apart,” said Kirk Vogel, the chief executive who is overseeing what he describes as a “polished casual chain” that is expanding here and in the Midwest.

The parent company, Walnut Grill Holdings Inc., just signed a deal to open the first of several restaurants in the St. Louis area and hopes to announce a fifth restaurant in the Pittsburgh area soon, Vogel said.

The expansion underscores the company's optimism in its brand and concept. Restaurants have struggled coming out of the recession as diners cut back on discretionary spending and have become more conscious about eating healthy.

Walnut Grill has flourished despite the pressure during the economic downturn “because we focused on developing our brand, maintaining prices and improving our systems,” Vogel said. “And people decided to spend money at our type of restaurant and to go to independents, which was cool for us.”

Walnut Grill was founded in 2001 in Shadyside by Vogel and three friends. They leased and remodeled retail space and started their first restaurant. Vogel said he had worked in various restaurant jobs since he was a teenager.

The company now employs about 270 people in its four restaurants and has added four more partners, including Simpson, the chain's corporate chef since 2006. He brings restaurant cooking expertise. Latter investors brought real estate and other skills besides financing.

The four restaurants each are producing “a little over $3 million” in annual revenue, Vogel said. “A turning point was when we relocated in Fox Chapel during the recession,” Vogel said. “We had a chance to move to the Waterworks Plaza in 2009, and that basically tripled our revenue. It catapulted us into a growth approach. Employment increased from 60 to 180 overnight.”

Having other backers and growing revenue are key to Walnut Grill's ability to expand. Vogel said the company plans to open 15 to 20 restaurants in the Interstate 70 corridor from Pittsburgh to Columbus, Cincinnati, Indianapolis and St. Louis. He did not have a timetable.

The St. Louis-area restaurant is under construction and is expected to open in November, the first of four or five in that area, Vogel said.

“We liked the demographics, and it made sense to start in St. Louis., which is similar to Pittsburgh in that it has south, north, western and eastern sections and people tend to stay in the same communities,” he said.

Walnut Grill tries to stand apart in the Pittsburgh market by not defining itself. It's not a steak house, Italian or seafood place, Simpson said.

“Our food is chef-driven, made in the pan and in-house, not from a supplier or central kitchen,” he said.

Harry Balzer, food industry analyst with NPD Group, Chicago, said it's a tough market for casual dining restaurants like Walnut Grill. It fits into the small segment of the industry called casual dining, between fast food, which captures 80 percent of the 200 visits an average American makes each year and the 5 percent captured by fine dining establishments, which feature waiters and waitresses.

“When you go to a fine restaurant, you want to be served, and fine dining is doing unbelievably great,” Balzer said. “Walnut appears to be casual on the verge of fine dining. They will be successful if they can make eating out easier and cheaper.”

The goal in St. Louis is to open restaurants by using the same model as in Pittsburgh — targeting suburbs and a customer base in the 25-55 age range. The company is working with Vinery Restaurant Group on the St. Louis expansion.

The principals of the Vinery Restaurant Group are Vogel's brother Eric, who has worked in the business in St. Louis for 15 years, and Stephen Baker, an investor and executive with Boeing Co., Kirk Vogel said.

His brother Eric has national experience in opening restaurants with Macaroni Grill and an independent chain.

“We'll create the bookend of our vision there first, testing our concept in that market. It's been a long time coming,” Vogel said.

Walnut Grill Holdings will own 60 percent of the St. Louis joint venture, with Vinery owning the remainder.

Walnut Grill's latest effort to stand apart is building large outdoor patios, according to Vogel, and the results have been good. The last of its four restaurants to open, formerly a Damon's in Bridgeville, had a large patio the owners decided to expand.

“It worked out so well that we've expanded it two more times, increasing seating from 60 to 120, and adding a patio bar with TVs and live music,” he said.

Patios at restaurants in Pine and Fox Chapel also were expanded.

“A lot of restaurants see revenue slow in the summer, but we've seen some real gains,” Vogel said.

John D. Oravecz is a staff writer for Trib Total Media. He can be reached at 412-320-7882.

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