Private-equity firm CIC Partners L.P. has sold the 27-unit Taco Mac sports bar-wing brand to a group of investors, an Atlanta-based investment group has announced.

Dallas-based CIC Partners first invested in Taco Mac’s parent, Tappan Street Restaurant Group Inc. of Atlanta, in July 2012 when it had 28 units. Taco Mac restaurants are in Georgia, Tennessee and North Carolina.

The new investors are led by Harold Martin Jr. of Atlanta as managing partner and include three of his associates in Nashville, Tenn.-based Fresh Hospitality LLC: Michael Bodnar, John Michael Bodnar and Mike Tidwill. Fresh Hospitality owns and operates restaurants as well as provides a broad range of consulting services.

Terms of the deal were not disclosed. “They are not providing information on purchasing entity or terms,” a spokesperson said.

Taco Mac, founded in 1979, is a casual-dining brand known for its Buffalo chicken wings and selection of draft craft beers in a sports-viewing atmosphere.

Martin said in a statement that “we are long-term owners who understand and enjoy the unique legacy of Taco Mac as an enduring restaurant that offers quality food, family fun, sports viewing and craft beer education.”

Martin and the other new owners said they plan to spend the next few months on a “listening tour” to gain feedback from loyal customers and employees.

“The team also plans to continue investing in the popular Brewniversity program, which rewards loyal guests as their beer knowledge expands,” the company said.

Arlington Capital Advisors LLC, which consulted on the original 2012 CIC deal, acted as the financial advisor to Taco Mac on the transaction.

CIC Partners, a middle-market private-equity firm, last August invested in the Dallas-based East Hampton Sandwich Co. in August 2017. CIC’s other foodservice investments include Granite City Food & Brewery, Willie’s Grill & Icehouse and the cookie delivery company Tiff’s Treats.

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Bravo Brio Restaurant Group Inc. has agreed to be sold to Spice Private Equity Ltd., a Zug, Switzerland-based division of GP Investments Ltd., in a deal valued at about $100 million, the companies said Thursday.

The Columbus, Ohio-based parent to the Bravo! Cucina Italiana and Brio Tuscan Grille chains had been exploring strategic options since last February amid same-store sales and profit declines. The company’s largest shareholder, TAC Capital LLC, had pressed for changes at the company.

“Our board of directors, in consultation with our outside advisors, has evaluated all options available to BBRG, and we are confident that this transaction maximizes value for our shareholders,” said Alton F. (“Rick”) Doody III, Bravo Brio’s chairman, in a statement.

“GP has a distinguished track record of being an active and valuable partner to its invested companies through its operationally oriented approach, which we expect will greatly enhance our ability to maximize the potential of our Bravo Brio brands nationwide,” he added.

Antonio Bonchristiano, CEO of GP Investments, said, “As a private entity, we will have greater flexibility to take a long-term view as we invest in Bravo Brio’s future growth and expansion, which will drive rewards for the company and our investors.”

Under the terms of the merger agreement, Bravo Brio shareholders will receive $4.05 per share in cash. The company’s stock closed at $3.47 per share on Wednesday.

The purchase price represents a premium of about 37 percent over the volume weighted average price of the Bravo Brio’s shares for the 90-day period immediately preceding the date of the agreement. Shareholders must approve the transaction, and it is expected to close in the second quarter.

Bravo Brio expects to report annual sales of more $400 million for the year ended Dec. 31.

Bravo Brio went public in October 2010 in an initial public offering that raised $140 million. The company had 83 restaurants at the time. It currently owns and operates 110 locations in 32 states.

Dechert LLP served as legal adviser to Bravo Brio, and Piper Jaffray & Co. served as financial adviser. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal adviser to GP.

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Privately held Juice It Up, a longtime rival of Jamba Juice in the Southern California region, has been acquired by a consortium of private equity brands.

Acting as the sole franchisor for Juice It Up will be SJB Brands, whose main investors are California-based private investment firms Dover Shores Capital, Britt Private Capital and Jupiter Holdings.

The value of deal was not disclosed. SJB purchased the 90-unit Irvine, Calif.-based chain from former CEO Frank Easterbrook. The food industry veteran, a former Nestle and M&M/Mars executive, has owned the smoothie chain for more than two decades.

Over the years, he’s pushed the 23-year-old brand to compete with the growing number of cold-pressed juice bars and smoothie chains popping up across the country. Beyond smoothies, Juice it Up serves raw juices, acai bowls and bottled cold-pressed organic juices.

Chris Braun (left), who previously served on the board of Dotta Foods, was named CEO.

Juice It Up, whose headquarters will remain in Irvine, Calif., said it is adding more locations this year in California, New Mexico, Oregon, Texas and Florida.  

“It is our principal objective to pursue initiatives that are designed around innovation, growing average store sales, and expanding our franchise base,” Braun said in a statement.

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Del Frisco’s Restaurant Group Inc. continues to wrestle with options for its 14-unit Sullivan’s Steakhouse brand, again considering a potential sale after launching an effort at franchising last year, executives said. 

Executives at the Irving, Texas-based upscale-dining company, which has been discussing a sale of its third steakhouse brand for the past two years, said its board had authorized management to look at a potential sale.

“While Sullivan’s Steakhouse has many compelling attributes,” said Norman Abdallah, Del Frisco’s CEO, said in its fourth-quarter earnings call last week, “we believe that Del Frisco’s Double Eagle Steakhouse and Del Frisco’s Grille provide us with far greater opportunities for expansion.”

“We therefore think it is appropriate to consider strategic options for Sullivan’s Steakhouse but of course cannot provide any assurance that this process will lead to any specific course of action,” Abdallah said.

Neil Thompson, Del Frisco’s chief financial officer, said the company in the fourth quarter closed Sullivan’s units in Seattle, Wash., and Houston and in January closed the location in Austin, Texas, at a site that is redeveloping. Thompson said the company has secured a site for new construction in Austin, but it plans to close another Sullivan’s this year.

In the fourth quarter, the company also stopped lunch service at several of the Sullivan’s units, which contributed to a decline in same-store sales of 10.8 percent at the division for the quarter ended Dec. 26. Same-store sales at the Del Frisco’s Double Eagle Steakhouse rose 1.2 percent in the quarter and at Del Frisco’s Grille they increased 0.9 percent.

The Sullivan’s decline, Thompson said, consisted of a 15.5 percent decrease in traffic and a 4.7 increase  in average check. The traffic decline, he added, was “in part due to the elimination of lunch at seven select Sullivan's locations beginning in the second quarter of 2017.”

If the company were to sell Sullivan's, Thompson said, Del Frisco’s anticipates a savings of $500,000 at the corporate level and in capital expenditures, as one Sullivan’s remodeling is planned.

While it considers strategic options for Sullivan’s, Abdallah told analysts that the company had put it had put the franchising program announced last year on hold, returning “all the materials and agreements for Sullivan's.”

Del Frisco’s is “really looking at a parallel path” for the brand, he added, be it “a sale or the asset-light approach that we've talked on previous calls.”

As for marketing of its brands, Abdallah said the company invested heavily in digital platforms in the fourth quarter.

“Our approach in Q4 and on a go-forward basis is 70 percent digital,” he said, adding that was “an appropriate balance to getting the right message to the right people at the right time, driving visitation and increasing our relevance on social media.”

For the fourth quarter ended Dec. 26, Del Frisco’s swung to a loss of $15.1 million, or 73 cents a share, from a profit of $7.1 million, or 30 cents a share, in the prior-year period. Revenues increased 2.3 percent to $121.9 million from $119.2 million in the same quarter last year.

The company today announced the opening of a new Del Frisco’s Grille at University Station in Westwood, Mass. On Thursday, Del Frisco’s announced two planned restaurant openings this year: a Del Frisco’s Double Eagle Steakhouse at Westfield Century City in Los Angeles and a Del Frisco’s Grille in the arts and entertainment district of Fort Lauderdale, Fla. 

Del Frisco's Restaurant Group, which went public in 2012, has 53 restaurants in 23 states and Washington, D.C. 

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Jack in the Box has completed the sale of Qdoba to Apollo Global Management in a $305 million cash deal, ending the burger chain’s 15-year ownership of the fast-casual Mexican brand. 

Affiliates of New York-based Apollo, which also owns the parent companies of the Chuck E. Cheese’s and Peter Piper Pizza dining-and-entertainment brands, inherit more than 700 owned and franchised Qdoba restaurants in the U.S. and Canada.

When Jack in the Box purchased Qdoba in 2003, the chain had 85 locations in 16 states, with $65 million in systemwide sales. In fiscal 2017, the chain generated systemwide sales of more than $820 million.

As part of the cash deal, Jack in the Box will make a prepayment of $260 million to retire outstanding debt under its term loan.

CEO Lenny Comma said in a statement that he wished Qdoba “all the best.”

“Completing the sale of Qdoba marks an important milestone in the actions we’re taking to enhance shareholder value while creating an asset-light business model that is less capital intensive,” Comma said in a statement on Wednesday.

Lance Milken, a senior partner at Apollo, said in a statement that the firm looked forward to working with Qdoba’s “outstanding management team, talented employees and dedicated franchise partners.”

Apollo did not reveal its plans for the chain and only stated that it will continue “Qdoba’s growth as a leading fast-casual restaurant brand.”

Jack in the Box has more than 2,200 restaurants in 21 states and Guam. 

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The owner of the Elephant Bar Restaurant Group has changed, a familiar occurrence for the distressed brand. Las Vegas-based Gen3 Hospitality announced today it had acquired the restaurant company, which includes seven locations in Nevada, California and New Mexico.

The brand, which is known for its globally influenced dishes and safari decor, has been acquired and sold several times in the past few years and has filed for bankruptcy in 2014 and in 2017. Gen3 Hospitality acquired the brand out of bankruptcy from Coast to Coast Entertainment, Inc. And in 2014, Chalak Mitra Group acquired the then-29-unit Elephant Bar out of bankruptcy.

Gen3 Hospitality founder and principal, Billy Richardson is undaunted by the brands complicated history.

“We’re focusing on the future, and we know Elephant Bar has a strong following and a family-like atmosphere. It started as a family business, just like Gen3 Hospitality,” he told Restaurant Hospitality in an email. “People remember when they had their first birthday party there, where they celebrated a high school graduation or where they went on their first date at Elephant Bar. A lot of memories have been made at Elephant Bar, and we want to keep that spirit and connection to the community alive.”

Richardson said he had no plans to close any Elephant Bar units, but he plans to make some changes.

“We will continue to discuss potential opportunities with our team and our guests,” he wrote. “For instance, we're in the process of bringing back menu items and promotions that are crowd favorites, as well as the Life Experience Discount for senior guests. We are also evaluating the existing physical assets, so we can make the necessary investment to revitalize the brand while reinforcing the aspects guests have loved for nearly four decades.”

Gen3 Hospitality owns five other restaurant concepts including Flour and Barley and Holsteins Shakes and Buns.

Las Vegas-based management consulting firm Joseph Beare & Company served as an advisor and strategic partner to Coast to Coast Entertainment, Inc. and Gen3 Hospitality during the acquisition. 

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Private-equity group TriSpan Rising Stars L.P. has bought the New York-based Rosa Mexicano from Goode Partners LLC, the companies announced Wednesday.

Trispan, which in October made a “significant” investment in the Miami-based Yardbird Southern Table & Bar, did not release details of the deal. Casual-dining Rosa Mexicano has 12 units nationally.

“We are thrilled to complete this purchase and look forward to working with this talented management team to further enhance the brand and add dynamic new locations to the group,” said Jessica Mornelli, a TriSpan partner, in a statement. “The current management team will remain in place."

Founded in 1984 in New York City, Rosa Mexicano has expanded to Boston, Los Angeles, Miami, San Francisco and Washington, D.C. as well as to the National Harbor development in Maryland and the Riverside Square development in Hackensack, N.J.

The menu features regional Mexican cuisine and guacamole prepared tableside.

"With TriSpan's partnership, we are looking forward to building on the existing units," said Chris Westcott, who will move from Rosa Mexicano chief operating officer to president and CEO.

TriSpan, with offices in New York and London, was established in 2015 to invest private equity in growing restaurant and food and beverage concepts.

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Bain Capital Double Impact, a mission-oriented private-equity fund, has led a new strategic investment in Portland, Ore.-based Sustainable Restaurant Group to grow its Bamboo Sushi and QuickFish brands, the companies said Tuesday.

The Boston-based Bain affiliate joined the New York City-based early-stage Kitchen Fund in the investment in Sustainable Restaurant Group, which has four full-service Bamboo Sushi units in Portland and one in Denver, as well as one limited-service QuickFish location in Portland. Terms of the investment were not disclosed.

“We are firm believers in the idea that Americans are going to eat healthier, more sustainable food in the future than they do today,” Warren Valdmanis, a managing director at Bain Capital Double Impact, told Nation’s Restaurant News. “Bamboo Sushi and the Sustainable Restaurant Group are purpose-built to help evangelize and expand that trend.”

Valdmanis called Bamboo Sushi “the affordable Nobu,” and it sources its supply from sustainable catches or farms.

SRG founder and CEO Kristofor Lofgren is inspirational in promoting sustainable sourcing, Valdmanis said.

“Kristofor and his high-quality management team have done an exceptional job of tapping into a growing segment of customers who recognize that eating sustainability sourced seafood is not only better for you, but also better for the planet,” he said.

Sustainable Restaurant Group has built a supply chain that validates fishing practices and excludes severely overfished oceans, fish fraud and health risks associated with farm-raised fish. The company also has committed to expanding awareness of sustainability and health and wellness benefits of fish consumption through in-restaurant green initiatives and consumer programs.

Lofgren said the strategic investment will allow the company to expand into new markets, with the plans for Seattle and San Francisco. 

“With the benefit of Bain Capital Double Impact and Kitchen Fund’s impressive restaurant experience, we are well-positioned to achieve our goal of providing mindful customers with a premium sushi dining experience at a great value while doubling down on our advocacy programs dedicated to sustainable fishing practices and supply chain transparency,” Lofgren said in a statement.

Bain has a long history of restaurant investments, Valdmanis said, including such brands as Burger King and Dunkin’ Donuts.

Last week, the Bain Capital Double Impact fund joined Kitchen Fund and other investors in providing growth capital for New York City-based By Chloe, a 10-unit vegan fast-casual concept, which was launched as a division of ESquared Hospitality.

Sustainable Restaurant Group was founded in 2008, when it opened Bamboo Sushi in Portland. QuickFish, opened in 2016, is certified by the James Beard Foundation’s Smart Catch program, the Marine Stewardship Council and the Green Restaurant Association. 

In 2017, Sustainable Restaurant Group launched its Carbon Calculator tool, which was created to determine the company’s carbon footprint down to the individual menu item and the offsets required to neutralize the effect on the environment. To offset carbon emissions, Sustainable Restaurant Group partners with The Ocean Foundation and its Seagrass Grow project to donate funds each year. 

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Irving, Texas-based Del Frisco’s Restaurant Group Inc. announced an agreement on Monday to acquire Barteca Restaurant Group for $325 million.

Norwalk, Conn.-based Barteca is parent to the Barcelona Wine Bar and Bartaco chains.

“We believe Barteca’s innovative and ‘best-in-class’ concepts are highly complementary and will provide Del Frisco’s portfolio with significant growth and development opportunities. They will provide opportunities to enable us to capture market share in the experiential dining segments, while mitigating the risk of seasonality and economic downturns to our current restaurant portfolio,” said Norman Abdallah, Del Frisco’s CEO, in a statement.

Source: Del Frisco's Restaurant Group Inc.

Del Frisco’s board unanimously approved the transaction, which is expected to be completed by the end of the second quarter, subject to antitrust clearance and other closing conditions, the company said. The proposed transaction does not require approval from Del Frisco’s shareholders.

For Barteca CEO Jeff Carcara, the deal is somewhat of a homecoming. Carcara joined Barteca in 2015 and served previously as Del Frisco’s chief operating officer.

Carcara will remain CEO of the Barteca brand division and will report to Abdallah. Barteca will operate autonomously and maintain its own personality, Abdallah said in a call with Wall Street analysts.

“We have tremendous brand pride across Barcelona and Bartaco. The excitement about our growth and potential is palpable in both our new and existing restaurants,” Carcara said in a statement. “I believe Norman and the team at DFRG share in the vision for what’s possible in terms of our evolution. There is strength in numbers, and I am excited to see what more we can accomplish together.”

Barteca was founded by Andy Pforzheimer and Sasa Mahr-Batuz, who first opened Barcelona Wine Bar in 1996, adding the Bartaco brand in 2010. Barteca is majority-owned by private-equity firms Rosser Capital Partners and General Atlantic LLC.

The acquisition comes as Del Frisco’s reported a consolidated 3.6-percent same-store sales decline across its Del Frisco’s Double Eagle Steakhouse, Del Frisco’s Grille and Sullivan’s Steakhouse brands, largely due to a 9.3-percent drop in traffic during the first quarter ended March 27. The decline in customer count was partially offset by a 5.7-percent increase in average check.

Del Frisco’s is considering selling Sullivan’s Steakhouse, the company said earlier this year, and Abdallah said the company expects to announce a buyer within the next 60 to 90 days.

The company also plans to close four underperforming Del Frisco’s Grilles and two Sullivan’s Steakhouses this year, including a Sullivan’s in Austin, Texas, that has already closed.

Barcelona Wine Bar has 15 units and Bartaco has 16 units across 10 states and Washington, D.C. Both chains are growing. Barteca generated $127.9 million in net sales in 2017 and $31.7 million in restaurant-level earnings before interest, taxes, depreciation and amortization, or EBITDA, representing a 24.8-percent margin, the company said.

Barcelona Wine Bar is a Spanish concept serving tapas with a lengthy wine list from Spain and South America. The brand boasts 46 percent of sales from beverages, which Abdallah said will fit well with the bar-focused portfolio. Three more locations are in development, and the company estimates 50 to 100 more restaurants.

In 2017, Barcelona Wine Bar generated $60.2 million in net sales, with same-store sales rising 1.9 percent for the year. The average unit volume was $4.7 million, and the average check was about $35 per person.

Bartaco is an upscale global-street-food concept with a market potential of between 200 and 300 units domestically, the company said. In 2017, the chain reported $67.1 million in net sales, with same-store sales rising 7.3 percent. Bartaco restaurants had an average unit volume of $5.6 million that year, with an average check of $22.

Carcara said Bartaco has the advantage of a busy lunch business and the midafternoon is becoming a differentiating daypart for the brand.

“The margarita is the next coffee,” said Carcara. “We’re seeing people using Bartaco in the afternoon like it’s the next Starbucks.”

Abdallah added that Barteca’s smaller restaurant footprint and lower average check gives the company more flexibility with development while benefitting from the shared services and infrastructure of partnering with a larger company.

“It’s really the best of both worlds,” he said. “It has the entrepreneurial feeling of a small brand with the support and structure of a disciplined larger organization.”

For the first quarter ended April 3, Barcelona Wine Bar’s same-store sales rose 1.7 percent, and same-store sales at Bartaco increased 2.6 percent, the company said.

Ian Carter, chairman of Del Frisco’s, said the acquisition fits with the company’s long-term strategy.

“Barcelona and Bartaco are the perfect additions to the Del Frisco’s portfolio, and are well positioned to deliver a long-term positive impact on our team, guests and shareholders,” he said.

Del Frisco Restaurant Group’s net income for the quarter dropped to $400,000, or 2 cents per share, compared with $3.3 million, or 14 cents per share, the previous year.

Adjusting for a change in the number of weeks in its quarter system, the company said adjusted net income was $2 million, or 10 cents per share, in the first quarter, compared with $4.6 million, or 20 cents per share, a year ago.

Abdallah blamed the decline on bad weather, cost increases from menu enhancements and beef inflation, but said labor costs benefitted from the implementation of Hot Schedules for scheduling.

Same-store sales declined 2.8 percent at Double Eagle, consisting of a 6.7-percent decrease in customer counts offset by a 3.9-percent increase in average check. Sales were impacted by comparisons with the Presidential inauguration a year earlier and the shift of the Super Bowl from Houston to Minneapolis, the company said. Excluding weather and the rollover impact, same-store sales would have been slightly positive.

Same-store sales fell 1.4 percent at Del Frisco’s Grille, including a 7.1-percent decline in customer counts offset by a 5.7-percent increase in average check.

Sullivan’s Steakhouse saw same-store sales drop 10.3 percent, including a 20.7-percent decline in traffic offset by a 10.4-percent increase in average check. Sales were impacted negatively by the elimination of lunch service during the second quarter 2017.

Consolidated revenue increased 6.5 percent, to $89.3 million in the first quarter, primarily due to an additional calendar week in 2018.

Abdallah said 2017 was a year of transition, but 2018 will be a year of growth, portfolio optimization and value creation. Sales trends were improving in the second quarter.

“With the onset of spring and winter now firmly behind us, we are encouraged that sales trends have improved in all three brands during the first five weeks of the second quarter on a sequential basis,” Abdallah said in a statement. “We believe that this improving momentum, coupled with the timing of the marketing expenses that weighed down the first quarter, positions us within our 2018 guidance range for adjusted net income, exclusive of the impact of the potential divestiture of Sullivan’s and the proposed acquisition of Barteca.”

Piper Jaffray acted as exclusive financial advisor to Del Frisco’s and its board, and Skadden Arps Slate Meagher & Flom LLP acted as legal advisor. Kirkland & Ellis LLP acted as legal advisor to Barteca.

Contact Lisa Jennings at lisa.jennings@KNect365.com

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Update May 7, 2018: This story has been updated with additional comment from Del Frisco's executives.

Bravo Brio Restaurant Group Inc. has rejected an unsolicited purchase bid by Romano’s Macaroni Grill and will proceed with a sale deal announced earlier with Spice Private Equity Ltd., the company said Tuesday.

The Columbus, Ohio-based parent to Bravo! Cucina Italiana and Brio Tuscan Grille said its board determined that Macaroni Grill’s offer on May 9 of $4.78 per share was not superior to the Spice Private Equity’s deal on March 7 of $4.05 per share.

“Macaroni Grill’s unsolicited proposal relies on significant third-party financing (both debt and equity), including by Raven Capital Management LLC, which was a prior participant in the company’s comprehensive review of strategic alternatives that led to BBRG’s entry into a definitive merger agreement,” the company said in a statement.

The Spice Private Equity deal is an all-cash transaction.

The company said it was on track to close the sale, valued at about $100 million, to the affiliate of Spice Private Equity, a Zug, Switzerland-based division of GP Investments Ltd.

The company has scheduled a special meeting of shareholders on May 22 to vote on the Spice Private Equity deal.

Bravo Brio had been exploring strategic options since last February amid same-store sales and profit declines. The company’s largest shareholder, TAC Capital LLC, had pressed for changes at the company.

Denver-based Macaroni Grill emerged from Chapter 11 bankruptcy protection on Feb. 15, after renegotiating lease terms and vender contracts and securing $13.5 million in new capital. As of February, Macaroni Grill had 86 company-owned locations in 22 states, plus 21 franchised locations in the U.S. and seven countries.

Bravo Brio said its board had “provided Macaroni Grill with ample time and opportunity to produce an actionable proposal with fully committed financing, and Macaroni Grill has failed to do so.”

Bravo Brio went public in October 2010 in an initial public offering that raised $140 million. The company had 83 restaurants at the time. It currently owns and operates 110 locations in 32 states.

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Landry’s owner Tilman Fertitta’s Landcadia Holdings Inc. has agreed to acquire online ordering and delivery platform Waitr Inc. for $308 million, the companies said late Wednesday.

Houston-based Landcadia Holdings, an acquisition shell that Fertitta took public in 2016 and raised $250 million, agreed to pay at least $50 million in cash, as well as stock, for Lake Charles, La.-based Waitr, which offers online ordering and delivery services to independent restaurants and chains in underserved markets.

Waitr, founded in 2013, has more than 5,000 restaurant partners in more than 200 cities in the Southeast.

The agreement calls for Waitr to become a wholly owned subsidiary of Landcadia. Landcadia will change its name to Waitr Holdings Inc. and become a publicly traded Nasdaq exchange company, a spokesperson said.

“This transaction with Waitr provides an incredible opportunity for the combined company to be the next leader in the fast-growing online food delivery market,” Fertitta said in a statement. “Our experience with Waitr as a partner combines best-in-class on-demand food delivery for diners and a true partnership for restaurants.”

Parent restaurant companies increasingly are investing in online ordering and delivery services. In February, Louisville, Ky.- based Yum! Brands Inc. bought $200 million in Grubhub Inc. stock to provide its KFC and Taco Bell brands with online ordering, pickup and delivery at U.S. restaurants.

Upon closing the Landcadia deal, Chris Meaux, Waitr founder and CEO, and the rest of the company’s executive team would continue in their roles, a Fertitta spokesperson said. Fertitta would serve as a director of the combined company and oversee growth and branding, and Meaux would be named chairman.

“We have seen firsthand the impact Waitr has had on our restaurants, the incremental sales growth it drives, and the positive feedback we receive from our customers,” Fertitta said. “Not only am I excited about the Landcadia-Waitr transaction, I am also pleased to have Chris and the entire Waitr team as a Landry’s delivery partner and look forward to growing successfully together.”

The companies said net cash proceeds from the deal transaction would be used to fund Waitr’s growth in current and new markets and allow Waitr to pursue acquisitions to grow its U.S. footprint.

Access to Landry’s portfolio of 600 restaurants and access to four million loyalty program members across the restaurants and casinos would benefit the company, Meaux said.

“Tilman’s domain expertise and his team’s deep experience and knowledge in the restaurant industry is the perfect complement to our focus on restaurant partners and our commitment to a unique customer experience in the online ordering and food delivery sector,” Meaux said.

Fertitta owns a large portfolio of hospitality companies, including the gaming giant Golden Nugget Inc., casual-dining behemoth Landry's Inc. and Fertitta Entertainment Inc. Fertitta bought the National Basketball Association Houston Rockets for $2.2 billion in October 2017.

“The opportunity for partnership with the Houston Rockets and its more than nine million Facebook followers and also the ability to drive elevated traditional and social media exposure both nationally and in strategic markets creates an exciting opportunity to accelerate customer acquisition,” Meaux added.

The boards of both Landcadia and Waitr have unanimously approved the proposed transaction. Completion of the proposed transaction is subject to Landcadia stockholder approval and other customary closing conditions, the companies said. The deal is expected to be completed later this year.

Fertitta’s companies own and operate more than 40 hospitality brands, including five Golden Nugget Hotel and Casino locations and such restaurant concepts as Landry’s Seafood, Chart House, Saltgrass Steak House, Bubba Gump Shrimp Co., Claim Jumper, Morton’s The Steakhouse, McCormick & Schmick’s, Mastro’s Restaurants and Rainforest Café.

Landry’s most recent restaurant acquisition was in August, when it won the bankruptcy court auction to buy Houston-based Ignite Restaurant Group, parent to the Joe’s Crab Shack and Brick House Tavern + Tap for $50 million.

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As Jack in the Box Inc. works toward refranchising more of its restaurants, executives said Thursday that they remain increasingly conscious about maintaining franchisee operating margins by balancing premium products with value-oriented menu items.

“I just don’t think businesses are being responsible if they put a strategy in place that essentially in the short term makes the corporation look strong but in the long term is not sustainable for the franchisees,” said Lenny Comma, CEO of the San Diego-based quick-service operator, in a second-quarter earnings call.

“At the end of the day, the consumer is choosing us for more than just value,” Comma told analysts. “I don’t want to train them to believe that the only way to use us is for value. It’s a balancing act. We can turn on the juice, but I just don’t think that at the end of the day it’s worth the squeeze.”

Toward the end of the second quarter, on March 21, the company completed the sale of its 700-unit Qdoba Mexican Eats brand to New York-based Apollo Global Management in a $305 million deal and turned to working on creating more asset-light franchised model for Jack in the Box.

The company refranchised 63 Jack in the Box restaurants in the second quarter and has sold back 29 units so far in the third quarter, executives said, increasing the ratio of franchised units to company-owned locations from 90 percent to 93 percent. With letters of intent to sell another 17 units, the franchise mix would rise to 94 percent, they said.

Jack in the Box now targets eventually owning just 138 of its more than 2,200 branded restaurants and franchising the remainder.

Same-store sales for the second quarter ended April 15 fell 0.1 percent for the Jack in the Box system, slipping 0.2 percent for franchised units and increasing 0.9 percent at company-owned locations.

For the second quarter, which included closing on the sale of Qdoba and benefits from tax rate changes, Jack in the Box reported a net earnings increase of 43.8 percent, to $47.6 million, or $1.62 per share, compared with $33.1 million, or $1.06 per share, the previous year. With the sale of Qdoba restaurants, revenue fell 21.1 percent, to $209.8 million, from $265.9 million the previous year.

In the quarter, delivery continued to generate an incremental lift in sales, Comma said.

The company added Postmates as a third-party delivery partner, joining the existing platforms of DoorDash and Grubhub, he said. One or more delivery companies are now serving two-thirds of the Jack in the Box system, Comma said.

Jack in the Box Inc. has more than 2,200 restaurants in 21 states and Guam.

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Luxembourg-based JAB Holding Co. has added yet another chain to its collection — Pret A Manger. JAB bought out the majority owner, private-equity firm Bridgepoint. The terms of the deal were not disclosed. 

The companies expect the deal to finalize this summer, and Pret CEO Clive Schlee promised al 12,000 employees of the brand a £1,000 bonus at that time.

Pret has a collaborative, bonus-based approach to employee engagement, making team members select new hires and having frequent mystery shopping tied to each location’s bonuses.

Pret offers premium prepared foods like sandwiches, soups and salads, with daily leftovers given to food banks. The brand has also made a pledge to move to all recyclable packaging by 2025.

“This is a day of celebration at Pret. This agreement recognises the hard work of all our amazing teams around the world,” said Schlee.

“Bridgepoint has been wonderful owners of the business for more than a decade. All of us at Pret believe JAB will be excellent long-term strategic owners. JAB believes in Pret’s values and supports our growth plans. I am really looking forward to this next chapter of Pret’s story.”

Schlee said that 2017 was the ninth consecutive year of sales growth.

London-based Pret has 530 locations, with the majority in the UK — but others scattered in nine countries. The prepared foods chain has been expanding in the U.S. market in dense areas with pedestrian traffic.

JAB has an assortment of breakfast, coffee and bakery brands including Panera Bread, Krispy Kreme, Peet’s Coffee, Caribou Coffee, Keurig, and Einstein Brothers.

Contact Jenna Telesca at Jenna.Telesca@knect365.com 

Follow her on Twitter: @JennaTelesca 

In a move reflecting how many busy Americans now look at mealtime, The Kroger Co. plans to acquire private meal kit company Home Chef in a deal valued at up to $700 million.

The agreement, announced late Wednesday, will bring to Kroger one of the nation’s largest meal kit providers in Home Chef, which delivers more than 3 million meals a month from its distribution centers in Chicago, Atlanta and San Bernardino, Calif. Home Chef's DCs reach 98% of all continental U.S. households within a two-day delivery window.

Plans call for Chicago-based Home Chef to become a Kroger subsidiary, continue to operate its offices and facilities, and maintain its online business on HomeChef.com. In addition, Home Chef will oversee Kroger's meal solutions portfolio, with Home Chef meal kits being made available to Kroger shoppers in stores and online. The companies said Home Chef's offerings will complement Kroger's Prep+Pared meal kits now sold in more than 525 stores.

"Customers want convenience, simplicity and a personalized food experience. Bringing Home Chef's innovative and exciting products and services to Kroger's customers will help make meal planning even easier and mealtime more delicious," Kroger Chief Digital Officer Yael Cosset said in a statement. "This merger will introduce Kroger's 60 million shoppers to Home Chef, enhance our ship-to-home and subscription capabilities and contribute to Restock Kroger." Restock Kroger is the Cincinnati-based company’s strategic plan to redefine the food and grocery customer experience.

Under the acquisition agreement, Kroger is slated to pay an initial price of $200 million plus future earnout payments of up to $500 million over five years based on the achievement of certain milestones, “including significant growth of in-store and online meal kit sales,” the companies said. Home Chef, founded in 2013, saw 150% growth last year to reach $250 million in revenue, including two profitable quarters.

"We've long believed that the future of our industry is omnichannel and bigger than just meal kits sold online. We want to be where our customers are and want to help make cooking at home easier, more accessible and even more enjoyable," said Home Chef founder and CEO Pat Vihtelic. "We're thrilled that we will be part of the Kroger family and plan to maintain our relentless focus on innovation that meets customers' evolving food needs. Kroger's expansive retail footprint will allow us to serve millions of more customers across the country with simple, convenient and enjoyable meal solutions."

Home Chef’s meal kits are designed for anyone to be able to cook. Delivered weekly, the kits feature fresh, pre-portioned ingredients with easy-to-follow recipes no matter what level of cooking experience. They also cater to a wide range of tastes. The companies noted that Home Chef leads the meal kit sector in terms of variety, going beyond a one-size-fits-all model with such options as 5 Minute Lunches, Flexible Servings, and new meals requiring minimal prep time.

"As one of the fastest-growing meal kit companies in the country, Home Chef is poised for even more explosive growth," Cosset said. "Home Chef's combination of culinary expertise and a customer data-driven decision-making process is right in line with Kroger's vision to serve America through food inspiration and uplift by providing meal solutions for every lifestyle."

Kroger and Home Chef expect the transaction to close in the second quarter, pending regulatory approval and customary closing conditions.

Though new meal kit providers continue to pop up, and meal kits are increasingly appearing in supermarkets, the space is seen as a big, untapped consumer market. Nine percent of Americans have bought a meal kit in the last six months (10.5 million households), and 25% would consider trying one in the next six months (over 30 million households), according to research by Nielsen.

Of the 9% of Americans who have tried a meal kit, 6% purchased it online, where meal kit companies are seeing robust growth, Nielsen noted. However, in-store meal kits last year generated $154.6 million in sales, up more than 26% year over year.

For Kroger, the largest U.S. supermarket company, the acquisition of Home Chef continues its efforts to adapt to new ways that today’s time-pressed consumers shop for and consume food.

Last week, Kroger unveiled an exclusive partnership with British online supermarket Ocado to develop a seamless omnichannel shopping experience in the United States. The companies aim to build three automated warehouses this year and identify up to 20 potential sites for the facilities over the first three years of their agreement. Under the deal, Kroger is hiking its current investment in Ocado by 5, bringing its stake in the U.K. company to more than 6%.

Private investment firm High Bluff Capital Partners has closed on a purchase of QCE LLC, parent to the Quiznos toasted sandwich chain, the company said Monday.

The Denver-based fast-casual brand said Susan Lintonsmith would continue as CEO and president under ownership by the San Diego, Calif.-based investment firm. Terms were not disclosed.

“I’m proud of the progress we’ve made in the past few years,” said Lintonsmith, who was named CEO in 2016 after serving four years as the chain’s chief marketing officer, in a statement.

“I’m excited about the future with High Bluff Capital Partners, and the level of experience and commitment they bring to Quiznos,” Lintonsmith said. “I believe this is the infusion we need to take the brand to the next level.”

Quiznos, which was founded in Denver in 1981, has about 800 locations in 32 countries.

Although Quiznos’ net U.S. unit losses have gotten smaller in each of the past several years, the company still closed more than 100 units in fiscal 2017, which represents nearly a quarter of the brand's units just a year earlier.

Quiznos emerged from bankruptcy in 2014 following a restructuring and controlling interest was held by a group of private-equity investors, including Oaktree Capital Management, Fortress Investment Group, Caspian Capital Advisors, MSD Capital LP and others.

According to Nation’s Restaurant News’ Top 200 research, Quiznos had 367 domestic units as of the December-ended fiscal 2017, down from 479 in the Preceding Year. U.S. systemwide sales fell to $148.8 million in fiscal 2017, down from $195.2 million in the Preceeding Year.

High Bluff Capital Partners specializes in the acquisition of consumer-facing brands and companies that present transformation opportunities, the company said in a press release.

“Quiznos is an iconic brand with strong awareness and attractive upside in the sandwich segment,” said Gerry Lopez, operating partner for High Bluff Capital Partners and executive chairman of the new company that will operate the Quiznos brand.

“We are excited about the acquisition,” Lopez said. “We have the commitment, industry knowledge and flexible capital to build on recent successes and drive future, sustainable growth.”

Shaun Klein at the Dentons law firm served as adviser to High Bluff Capital Partners. Holland & Hart LLP served as legal and Brookwood Associates as merger and acquisition advisers to QCE LLC.

Contact Ron Ruggless at Ronald.Ruggless@KNect365.com 

Follow him on Twitter: @RonRuggless

ARC Group Inc., parent to the Dick’s Wings & Grill casual-dining concept, is working toward a purchase of the struggling Tilted Kilt Pub and Eatery concept, the company said this week.

Jacksonville, Fla.-based ARC wants to complete the purchase of the 47-unit Phoenix, Ariz.-based Tilted Kilt within the next three months, said Rick Akam, CEO of the company formerly known as American Restaurant Concepts and owner of the 23-unit Dick’s concept.

“ARC wants to complete this transaction, but we just need to take a step to get the financing to do so,” Akam said in an interview Tuesday.

As an intermediary step, Tilted Kilt has executed sale agreements with SDA Holdings LLC, a company owned by Fred W. Alexander, who is a member of ARC’s board. SDA is funding the purchase with a loan from Seenu Kasturi, ARC Group's chairman, primary owner and chief financial officer.

“When we get some financing in place through ARC, we’ll complete the transaction,” Akam said.

“We’ve been working with the Maxim Group out of New York, and we’re pretty far down the pike as far as going out and making a raise to do this transaction,” he added. “If I had to estimate, it’s two to three months away.”

All but two of Tilted Kilt’s 47 units are franchised, and Akam said the remaining system has 37 franchisees for the 45 units.

The heavily franchised system is similar to Dick’s Wings, which ARC bought in January 2013, he said. ARC owns and operates two of the units and the remainder are franchised. The casual-dining units generally cover 3,500 to 4,500 square foot; about half the restaurants have full liquor service and the other half offer just beer and wine. Dick’s Wings units are in Florida and Georgia.

Akam, who started with Atlanta-based Hooters in 1984 and served as president and CEO until October 2003 as well as worked with Dallas-based Twin Peaks in 2011 and 2013, said ARC has been able to hone the Dick’s Wings & Grill format.

“We were able to take Dick’s Wings & Grill from a 14-unit chain in 2013 up to 23 units,” he said. The brand has two concessions at EverBank Field [home to the Jacksonville Jaguars National Football League team.

“It was a struggling chain started in 1994,” Akam said. “What we were able to do with average unit volumes and sales gave us a lot of confidence in looking at something like Tilted Kilt, which has struggled the past few years with identity, store closures and unsatisfied franchisees.”

According to Nation’s Restaurant News Top 200 research, Tilted Kilt’s fiscal 2017 sales were an estimated or reported $117.4 million, down from $156 million in in 2016 and $175 million in 2015.

Akam said Tilted Kilt, which has shuttered about half its system since 2014, still has good name recognition.

“They have restaurants scattered throughout the U.S., which is harder to manage but, from an identity standpoint, they are in a lot of different regions,” he said. “We felt we had a good opportunity to grow those regions strategically and maybe get away from the single-ownership philosophy.”

Akam said the ARC team can “make a difference” in the Tilted Kilt brand.

 “Over the next 60 days, it’s our goal to do a lot of discovery with the franchisees and current staff and get a better idea of what their challenges are out there, whether they be menu or branding or marketing or whatever,” he said.

Contact Ron Ruggless at Ronald.Ruggless@KNect365.com 

Follow him on Twitter: @RonRuggless 

The plant-based Native Foods Café chain has a new owner with plans to grow.

With 13 restaurants in four states, the Chicago-based fast-casual concept was acquired by private-equity-firm Millstone Capital Advisors, based in St. Louis, the company announced Thursday.

Terms of the deal were not disclosed, but former owner Daniel Dolan has retained a stake and remains on the board. The company said the current management team, including president Scott McDonnell, will continue to lead the brand. 

A Nation’s Restaurant News Breakout Brand in 2015, Native Foods was owned previously by Andrea McGinty and husband Dolan.

The concept was first launched in Palm Springs, Calif., in 1994 by chef Tanya Petrovna, who later sold it to McGinty and Dolan in 2009. The couple moved the company headquarters to Chicago.

In 2014, the chain won a $15 million investment from Laurel Crown Partners LLC and Huntington Capital, which had followed a $10 million investment in 2013 by NGEN Partners. 

At the time, there were few other fully vegan or vegetarian restaurant concepts, but McGinty and Dolan saw growing consumer interest in plant-based dining.

In 2014, the chain had reached 26 units and had plans to open 200 more over the next five years.

Instead, the chain ended up closing a number of restaurants in Washington, D.C., Los Angeles and Denver, as officials set out to rework the brand to compete with growing competition — not only from other plant-based chains, but also from the improving vegan and vegetarian offerings increasingly found on all restaurant menus.

Native Foods, however, estimates that the large majority of its customers eat meat, but are drawn by the menu — with global dishes like pad Thai, bulgogi kimchi tacos and vegetarian chicken and waffles — as well as the chain’s environmentally friendly business practices.

Citing a 2017 GlobalData study, the number of U.S. diners who identify as vegan increased 600 percent — from 1 percent to 6 percent of the population — between 2014 and 2017, the company said. 

“In 1994, our company first set out to bring compassionate dining to the fast-casual segment,” said McDonnell in a statement. “We are eager to share our passion for great food and creative, innovative and diverse menu offerings with more customers in both new and existing markets, and we’re confident Millstone Capital Advisors is the right partner to help us realize this goal.”

Millstone, meanwhile, said the investment will help Native Foods expand. It’s the second restaurant investment for the private-equity firm, which also owns the Lion’s Choice family of restaurants, with 26 locations in the St. Louis area. 

“To be aligned with a brand with the core values and healthy, sustainable dining options that Native Foods Café has is an honor,” said Robert Millstone, the firm’s managing director, in a statement. “The plant-based dining segment has experienced solid year-over-year growth and Native Foods Café has been at the forefront of this segment for well over 20 years. We feel they are well positioned for even greater success and we intend to help them achieve this through organic, fiscally responsible and sustainable growth.”

In an interview, Millstone declined to give growth projections, saying the first step is working with existing management to discuss strengths and challenges and “put in place missing pieces.”

“We’ll grow as quickly as we can while maintaining the quality of food and the experience,” he said. “It’s too early to say how many stores will open.”

Though he declined to give systemwide sales, Millstone said sales this year were up in double digits year-over-year, in part because the brand hits on current trends toward plant-based dining, sustainability and healthy eating.

“We think it has all the attributes to be a very strong company, not just today but going forward,” he said.

Contact Lisa Jennings at lisa.jennings@knect365.com

Follow her on Twitter: @livetodineout

Update: June 21, 2018 This story has been updated to clarify previous ownership of Native Foods Café and to include additional comment from Robert Millstone.

SBE Entertainment Group, parent company of the Umami Burger chain and operator of several of José Andrés’ restaurants, among many others, has found a new investor to fuel its expansion.

AccorHotels and SBE have signed a letter of intent for Accor to acquire 50 percent of SBE. The hotel group said it would invest $319 million in SBE to buy the common equity and preferred units owned in part by Cain International, giving it a 50 percent stake. SBE founder and CEO Sam Nazarian will continue to own the remaining half of the company.

Accor said it would buy the common equity for $125 million and invest $194 million in a new preferred debt instrument to buy the preferred shares. The deal is expected to be completed July 31.

Cain International invested in SBE in 2016 to help fund its expansion.

Nazarian said the long-term investment by Accor “supports our collective ambition to be the best lifestyle hospitality company in the market,” and would help fuel expansion in the U.S., and abroad, particularly in Europe.

AccorHotels chairman and CEO Sébastien Bazin said the investment would allow the Paris-based hotel group to expand its footprint in the United States, particularly in “key U.S. cities such as Miami, Los Angeles or Las Vegas, and in other international destinations.”

He added: “‘The new luxury’ is all about exclusive experiences and incredible lifestyle concepts and SBE brands have the perfect know-how that will complete perfectly the AccorHotels portfolio.”

SBE’s Disruptive Restaurant Group includes José Andrés concepts The Bazaar, with locations in Beverly Hills, Calif.; Las Vegas; Miami and Miami Beach, Fla., as well as Tres in Beverly Hills. It also operates the Umami Burger casual-dining chain, with about 20 units, and Katsuya, Cleo, Leynia, Diez & Sez and Filia restaurants. Additionally, SBE has numerous hotel and luxury residential brands including SLS, Delano, Mondrian, Hyde and the Redbury Hotels. It said it plans to operate 25 hotels by the end of 2018 as well as 170 restaurants and entertainment venues.

Contact Bret Thorn at bret.thorn@knect365.com 

Follow him on Twitter: @foodwriterdiary

Private-equity firm Centerbridge Partners L.P. is exploring a sale of the P.F. Chang’s China Bistro casual-dining chain after owning it for six years and splitting off its sibling brand, the fast-casual Pei Wei Asian Kitchen.

Centerbridge and the board of Scottsdale, Ariz.-based Wok Parent LLC announced Friday they had retained Bank of America’s Merrill Lynch and Barclays to oversee a possible sale of P.F. Chang’s, which it took private in a $1 billion deal in July 2012.

“Given the positive performance of P.F. Chang's Bistro and having received multiple unsolicited indications of interest, this is an exciting time to explore a sale,” said Steve Silver, global co-head of private equity at New York City-based Centerbridge, in a statement.

“We have a deep, talented team and compelling growth initiatives, including unit expansion of both our domestically operated and international franchise businesses,” Silver said.

P.F. Chang’s has 307 locations, operating 214 in the United States and franchising another 93 restaurants in 24 countries. A company spokesperson said the brand plans to open seven additional U.S. restaurants this year and several more overseas, including the first location in Pakistan later this month.

The company said P.F. Chang’s restaurants generated an average unit volume of $4.1 million in 2017. U.S. systemwide sales, according to Nation’s Restaurant News’ Top 200 research, were an estimated $912.9 million in 2017, up from $906.2 million in the preceding year.

“We have enjoyed a very positive partnership with Centerbridge,” said Michael Osanloo, P.F. Chang’s CEO, “and are excited to tell prospective buyers about the company’s heritage, its attractive positioning in full-service Asian dining, the operational strengths of the business that we have built during Centerbridge’s ownership and its exciting growth prospects.”

The company split off the 200-unit fast-casual Pei Wei Asian Kitchen brand into a separate business and last year moved the fast-casual concept’s headquarters from Scottsdale to Irving, Texas.

Pei Wei Asian Kitchen had an estimated $339.9 million in U.S. systemwide sales in 2017, down from $357.2 million in the preceding year, according to NRN Top 200 estimates.

The P.F. Chang’s China Bistro brand was founded in 1993 by chef Philip Chiang and Paul Fleming, and it is celebrating its 25th year this month with special offers and contests through July 25.

Contact Ron Ruggless at ronald.ruggless@knect365.com 

Follow him on Twitter: @RonRuggless

FAT Brands Inc. has completed the previously announced acquisition of Hurricane Grill & Wings for $12.5 million, the company said Thursday.

Los Angeles-based FAT Brands said the acquisition of West Palm Beach, Fla.-based Hurricane, which has more than 50 units in eight states, included $8 million in cash and $4.5 million in preferred stock.

FAT said the deal brings its total restaurants to more than 325, including Fatburger, Buffalo’s Cafe, Buffalo’s Express and Ponderosa and Bonanza steakhouses.

“The completion of this acquisition will allow our management team to expand Hurricane’s footprint in both existing markets and new international markets through the company’s extensive network of franchise partners,” Andy Wiederhorn, FAT Brands president and CEO, said in a statement. 

FAT brands said Hurricane Grill & Wings, founded in 1995, complements its existing portfolio of brands, which includes Buffalo’s Cafe and Buffalo's Express, both chicken wing brands.

FAT, which stand for “fresh, authentic and tasty,” completed a $24 million Regulation A+ initial public offering in October, raising $24 million under new rules that enable small companies to raise money from investors in a “mini IPO.” 

“We are excited to complete our first acquisition since our IPO, and we remain committed to asset-light growth through a combination of accretive acquisitions of franchise brands and organic new store growth of existing brands,” Wiederhorn said.

John Metz, president and CEO of Hurricane Grill, added: “We are honored to officially join the FAT Brands family. This partnership will enable our team to leverage FAT Brands' proven expertise and robust infrastructure to realize our brand potential and grow our presence around the world.”

Separately, Brooksy Smith, who headed marketing and development Hurricane Grill’s three-unit Hurricane BTW (Burgers, Tacos and Wings) concept, said he would be leaving the company and returning to his role as president of the Houston-based Big Fish Brands LLC, which advises and manages small and mid-sized businesses.

Hurricane Grill & Wings first opened in Fort Pierce, Fla., in 1995 and has locations in Alabama, Arizona, Colorado, Florida, Georgia, Kansas, New York and Texas.

Contact Ron Ruggless at ronald.ruggless@knect365.com

Follow him on Twitter: @RonRuggless