Morton's Restaurant Group Inc. plans to remodel its downtown Atlanta location this summer, expanding the site by almost 50 percent, updating the bar and lightening the overall atmosphere.

The Chicago-based steakhouse firm, which has locations in Buckhead and downtown, also is considering a third metro Atlanta restaurant.

(ENLARGE)

This is what the bar in Morton's downtown Atlanta location is expected to look like once renovations are complete. It will be remade in the company's more contemporary 12-21 format.

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Morton's has been in Atlanta for 22 years and continues to find a growing market of sophisticated guests, said Morton's chairman and chief executive Tom Baldwin. It recently extended the downtown lease for another 15 years.

"It's really a statement about our business and our commitment to the community," Baldwin said this week while visiting Atlanta.

Morton's remodeled the Buckhead site last year as part of the company's "Let the Sunshine In" program. A new Bar 12-21 concept also was added.

The downtown Atlanta restaurant, at 303 Peachtree Center Ave. in the SunTrust Plaza Building, will get similar treatment.

The restaurant, now encased in wood paneling, will be opened up with windows all around. New carpeting, chairs and lighting will be brought in. Another 4,000 square feet devoted to private dining also will be added to the 8,500-square-foot restaurant.

In addition, the bar will be opened up to the restaurant and remade in the company's more contemporary 12-21 format, complete with flat-panel TVs and a "bar-bites" menu.

The project, targeted for completion by Labor Day, will be done while the restaurant remains open.

Business travelers and conventioneers make up much of the downtown business, but Morton's is noticing more repeat customers who live nearby. Bar 12-21, in particular, also should attract a younger crowd and more women than the traditional restaurant, Morton's officials said.

"Our brand is still a wonderful brand," Baldwin said. "We're celebrating our 30th anniversary, but we recognize that we need to continue to evolve our brand and continue to reinvest in our business."

Like the stock for many restaurant and hospitality companies, Morton's stock has fallen sharply, almost 60 percent, in the past year. Revenue, profits and comparable restaurant revenue all rose in 2007.

The economic downturn has affected Morton's, said Jeffrey Omohundro, a Wachovia Capital Markets analyst who tracks restaurants.

The high-end customer base should be stable even in a recession, but Morton's aspirational, or less affluent, customers might consider other dining options, Omohundro said.

Morton's, though, is making smart moves, he said.

"The Bar 12-21, the site selection, the decor package has been far-improved in our view," Omohundro said.

Morton's expects to add another four to six restaurants this year. Baldwin would not say whether Atlanta will be one of these new sites, but it is under consideration for another restaurant in the "near-term," he said.

"We are evaluating different opportunities in Atlanta at this point," Baldwin said.