The Greene Turtle began as a nondescript neighborhood bar in Ocean City, Md., back in 1976. Owners Mike Holden and Phil Anthony sold the operation in 1978 to its bartenders, Steve Pappas and Tommy Dickerson, who transformed the operation into what is now equal parts sports bar and restaurant.

A second location in the historic Fells Point section of Baltimore was added in 1986, and a third site opened in Laurel, Md., in 1990. After opening two more Maryland locations in Edgewater and West Ocean City in 1998, expansion accelerated, helped by the 2004 creation of a franchise corporation aptly named The Greene Turtle Franchising Corp.

While most of its operations are in Maryland, the chain has recently expanded into Delaware and Washington, D.C.

Currently, The Greene Turtle has 23 locations. The company owns 10 sites, franchisees run 10 units and three locations operate under a separate grandfathered arrangement. "We expect to open three more restaurants, and possibly a fourth, by the end of this year," says Bob Barry, COO.

"Each time we build or open a site, we step it up a notch," Barry adds. "Yet, we still retain core consistencies and our signature look."

The restaurant's "signature look" is easily managed. Unlike cookie-cutter concepts bound by their own design, The Greene Turtle's equipment and design elements have the flexibility to work in both pre-existing and newly built sites—an advantage when scouting prime real estate. Each restaurant's cultural theme is different and allows for varied footprints. Its design package works around many existing kitchen and bar areas, while still bringing together strong brand presentation through the chain's décor package. One Greene Turtle unit occupies a trim, 2,700-square-foot space in the Baltimore/Washington International Thurgood Marshall Airport; the largest fills 11,000 square feet.

"This concept provides us with the ability to adapt and gives us options when we're doing conversions," Barry explains. "If the location is right, we know we can put our stamp on it and create the overall atmosphere our restaurants are known for. That's a huge part of our success."

The company's success also points to its customers' loyalty, expressed in the Mug Club program. A one-time $45 membership fee includes a 16-oz. ceramic stein that is numbered on the bottom with the logo on the side. The mugs hang behind the bar at each Greene Turtle; members use their mug at that location only for discounts on beverages, menu specials and access to exclusive events. For example, at Greene Turtle Mug Club parties, members are invited to cook off whatever foods remain from what had originally been purchased for limited time offers. Barry says this makes good use of the food, while also rewarding loyal customers.

Some locations have more than 1,000 customer mugs on display, and devoted Greene Turtle customers have been known to drive two to three hours in order to have a mug hanging at every location. Company officials say hundreds of guests have mugs in many locations.

"The Mug Club program defines us and is important to our customer base," Barry says. "It makes our customers feel that they are part of the community, while building our brand loyalty."

A typical Greene Turtle unit seats 225 customers. Décor includes tiled floors, brick pillars, beadboard wall dividers, and custom metal-mesh wall dividers that feature the restaurant's logo.

Televisions, including flat-screens at every booth, are plentiful, as are photographs and memorabilia highlighting professional-sports personalities as well as local teams and players.

The moderately priced menu offers portions meant for sharing. Top sellers include dips such as Buffalo Chicken and Pretzels con Queso; Angus beef burgers; bone-in and boneless wings with a choice of eight sauces; chicken, pork, cheeseburger and hot dog sliders, and a selection of flatbread pizzas. Doughnut sticks with a side of vanilla icing, cheesecake and apple crisp round out dessert options.

Barry estimates that appetizers, burgers and sliders make up half of the chain's food sales.

Kitchens range from 1,200 to 1,700 square feet. The company purchases the $130,000 worth of equipment used for each site directly from manufacturers. Brokers and distributors occasionally are called in to build units and install equipment.

"Our architect, Alan Hamm, specifies our back-of-the-house, with general contractors pricing out the equipment for us," Barry says.

Though restaurant footprints can vary, each kitchen uses a standard cook line. "While one location may have a 36" charbroiler, another may have a 30" unit due to space issues, but the equipment is the same," Barry says.

Sites use a 36" charbroiler, 48" flat-top grill, four-burner stovetop, single-deck oven, salamander and three gas fryers. Sandwich units, reach-in and walk-in freezers and refrigerators also are part of the package. The Greene Turtle is exploring energy-efficient equipment with quicker recovery times, Barry says.

While the company's sales have held in the past year, securing financing for new stores and franchisees has been a huge hurdle, according to Barry. "The fact that loans have tightened up tremendously over the last eight to 10 months has caused us to work closer with our partners and vendors," he says.

The tough economic climate hasn't lessened the chain's commitment to charity, however. Its Funds for Friends program, started in 2005, partners with community groups, sports teams, schools and other nonprofits. Through this program, individual Greene Turtle locations, including franchisees, partner with local organizations that encourage their members and friends to visit the local restaurant on a specific day. The organization receives 10 percent of the entire day's receipts from the participating site. The Greene Turtle's charitable donations recently surpassed $400,000 in monies contributed to local organizations. In 2008, the program was honored as a Maryland State Winner of the National Restaurant Association's Restaurant Neighbor Award. In 2008, the program was honored with the Restaurant Association of Maryland's McCormick Cornerstone of the Industry Award.

"We encourage our managers and team members to get involved with the Funds for Friends program," Barry says. "Our franchise system also does a great job with facilitating these events."

One Greene Turtle franchise sponsored the popular "Extreme Makeover: Home Edition" television show episode featuring single mother Felicia Jackson, who is raising 14 children ranging in age from four to 18 years old. Frank Illiano, the Germantown franchisee, donated a week's worth of breakfast, lunch and dinner for hundreds of volunteers throughout the week. The Greene Turtle also hosted an official after-party for the cast and volunteers, in addition to a catered picnic for volunteers and the Jackson family.

Franchise expansion is the company's priority in 2010. The chain is seeking multi-unit franchise developers to reach its goal of having 150 new eastern U.S. units open or in development by 2015.

The growth effort already has momentum; several existing franchisees are on board to develop additional locations, Greene Turtle's first Virginia location, in Fredericksburg, will open this fall. Additional Virginia restaurants will open in Leesburg this January and Chesapeake, Va. in the first quarter of 2010.

The company is looking at sites in Delaware, New Jersey, New York, Pennsylvania, North Carolina, South Carolina and West Virginia; restaurants in Florida and New England states also are being considered.

"We are starting to build some stores outside of our market to get our brand name out there," Barry says. "Anywhere we can drive or fly to in a couple of hours is an option."