Latest news with #restaurantacquisition
Yahoo
19-06-2025
- Business
- Yahoo
TSCP acquires fast-casual chain Bubbakoo's Burritos
St Louis, Missouri-based private equity company Thompson Street Capital Partners (TSCP) has acquired New Jersey-based Bubbakoo's Burritos, a fast-casual Mexican-fusion restaurant franchisor, for an undisclosed sum. Bubbakoo's Burritos was established in Wall Township, New Jersey in 2008 by Bill Hart and Paul Altero, with a twist on traditional Mexican offerings. The brand, which emphasises made-to-order food, began franchising in 2015 and has since grown to 130 locations across 15 states, primarily on the US East Coast and in the Midwest. This strategic acquisition by TSCP comes as the fast-casual category continues to outpace other foodservice segments. Consumer trends show a preference for flavourful, customisable cuisine and investors are gaining interest in scaleable restaurant concepts. Legal advice for the transaction was provided by Sidley Austin. TSCP managing partner Bob Dunn stated: 'Bubbakoo's has created an innovative and compelling brand that resonates with a broad and growing customer base.' 'Bill and Paul have built something special — an exciting concept with strong franchisee relationships, consistent unit growth and a passionate following. We are thrilled to partner with the team as they enter this next phase of expansion.' Bubbakoo's co-founder Altero added: 'Thompson Street Capital Partners brings deep experience in scaling founder-led businesses and shares our passion for supporting franchisees and delivering great experiences to customers.' 'With their support, we're confident Bubbakoo's can accelerate its growth into new markets, invest in technology and infrastructure, and continue building a world-class franchise system.' In February 2024, Bubbakoo's Burritos launched an outlet in West Haverstraw, New York, marking the 15th location for franchise operators Perry and Fenil Patel. "TSCP acquires fast-casual chain Bubbakoo's Burritos" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
17-06-2025
- Business
- Yahoo
Bain Capital Private Equity to raise $500m to buy Sizzling Platter
Bain Capital Private Equity is buying US-based multi-brand restaurant franchisee platform Sizzling Platter. Affiliates of Bain Capital intend to offer $500m in secured notes to fund the acquisition from CapitalSpring. Bloomberg reported in April 2025 that Bain Capital planned to buy Sizzling Platter from its parent company Capital Spring for $1bn, including debt. The affiliates, BCPE Flavor Debt Merger Sub and BCPE Flavor Issuer, plan to utilise the net proceeds from the notes offering, along with funds from new senior secured credit facilities and equity contributions, to finance the acquisition, settle Sizzling Platter's existing debts and cover related fees and expenses. Any remaining funds will be allocated for general corporate purposes. Based in Salt Lake City in the US state of Utah, Sizzling Platter operates 750 restaurants spanning eight brands: Dunkin', Cinnabon, Jamba, Jersey Mike's, Little Caesars, Red Robin, Sizzler and Wingstop. Little Caesars is the largest, with approximately 450 locations in the US and Mexico. Bain Capital has a longstanding presence in the restaurant industry. In 2023, it acquired Fogo de Chão and has previously invested in Bloomin' Brands, Dunkin' and Domino's. In early 2025, Bain Capital also agreed to purchase supermarket chain Seven & i for $5.5bn. The supermarket chain operates Denny's franchises. "Bain Capital Private Equity to raise $500m to buy Sizzling Platter" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Forbes
14-05-2025
- Business
- Forbes
Pollo Tropical: How Authentic Restaurants Brands Boosted Its Revenue
Pollo Tropical is now privately-owned, has 145 locations, based predominantly in Florida, and is ... More mostly company-owned, not franchised. Pictured is its Weston, Fl. location. When Alex Macedo, the CEO of Authentic Restaurants Brands, which owns P.J. Whelihan, Mambo Seafood and Tavern in the Square among several brands and his team, studied Pollo Tropical, a Caribbean flame-grilled chicken chain, he saw, 'massive untapped growth potential.' So it acquired Pollo Tropical from the Fiesta Restaurant Group (NASDAQ: FRG) in 2023 and took the chain private. By using its data analysis and operational strategies, it boosted Pollo Tropical's average unit volume by 15% its first-year, post-acquisition. Pollo Tropical is centered in Florida where 127 of its 145 locations are situated with an additional 18 across Puerto Rico and the Bahamas. Unlike most restaurant chains these days, where franchising dominates and often leads to quick growth, it owns 122 of its outlets with only 23 franchised with 16 of those in Puerto Rico. Indeed 90 of its stores are based in the Miami, Fort Lauderdale, West Palm Beach environs. Macedo said Pollo Tropical possessed all the attributes that it pursues in an acquisition including 'high-volume and high-margins with strong regional relevance and long-term staying power.' Although Authentic Restaurant Brands (ARB) is owned by NYC-based private equity company Garnett Station Partners, Macedo explains that ARB are 'restaurant operators, which sets us apart when we acquire new businesses' and don't have a quick buy then sell mentality. He acknowledges, however that 'at some point they will sell.' Both Macedo and Dirk Montgomery, CEO of Pollo Tropical, are based in Miami, which Montgomery says provides them a 'tactile feel for all the restaurants because we're here.' Visiting outlets unannounced enables Montgomery to see in an 'unfiltered way, whether guests are taken care of, where the manager is focusing and whether his eyes are on the guest.' Its 2 Strategies To Boost Revenue To boost revenue, Macedo explained that its two main strategies were to extend its hours and simplify its menu. Since drive-thru purchases constitute 50% of its sales, a strong portion of its revenue stems from dining during peak times. But half the orders were customized, which slowed down the line and often led to customers driving away, unwilling to wait. In addition, because of Covid most Pollo Tropical outlets reduced their hours and closed at 10:30 p.m. and kept those hours post-Covid but its new ownership extended them until midnight. Macedo said 'the demand later in the evening contributed to boosting revenue to approximately a 3% increase in same-store sales.' Simplify, Simplify Its data engineers analyzed the menu and ordering patterns, identified top selling menu items, and simplified its' offerings. The streamlined menu contributed to speeding up the lines, amounting to a 15-second improvement in service times, which Macedo says, 'had a huge impact given how high-volume our locations are.' Why does that 15-second speed-up make such a difference? Macedo says when most people see 12 cars on line, they drive out quickly, so speeding up the line promotes more business and a superior customer experience. It also launched a whole new line of chicken sandwiches and a TV campaign promoting its $19.95 family chicken dinner, consisting of 8 pieces of chicken, rice and 2 sides, that would cost $25 to $27 at other chicken chains, Macedo notes. 'It's a huge value driver,' he concludes. Leave The Culture Alone Asked what it did to change Pollo Tropical's culture, Macedo replied that it 'wasn't looking to change the culture, as that is what drew us to them in the first place. We bring operational expertise, resources and proven best practices to help teams execute at even a higher level.' Hence, CEO Montgomery says the menu revolves around two main items: freshly grilled chicken and black beans and rice. The quarter or half grilled chicken is marinated for 24-hours in citrus juices and spices, then flame-grilled and the black beans and rice personify a classic Latino dish. Montgomery adds that while many chains offer fried chicken dishes, which aren't healthy, its chicken is lightly charred and 'aligns well with today's more health-conscious consumer seeking grilled over fried proteins.' On Yelp some of Pollo Tropical's clientele in Miami, Fl. echoed Montgomery's sentiments. Stephanie from Miami wrote that it offers a 'semi-healthier version of fast food than getting your usual burger or fried chicken nuggets. Their flavors seem to be on point.' And she noted that she has never waited more than 5 minutes through the drive-thru. Kevin from Manchester, Ct. described dining at Pollo Tropical in Miami as a 'Cuban Boston Market. They serve up chicken, pork and other meats with Cuban sandwiches and rice and beans. And the price was very cheap, a meal with a quarter chicken cost 11 bucks.' Despite the growth in revenue, CEO Montgomery says don't expect to see them opening new stores in 2025. 'We plan to be very selective,' he states, 'and open a small number of high-sales volume locations beginning in late 2026 or 2027. That will contribute to consistent revenue growth over the next few years.' Why such slow growth? Macedo says that first it wanted to improve the guest experience, sales and bottom line, then they'll turn to opening new locations. Staying within Florida, Macedo adds, helps with supply chain issues, staffing, and being in relative proximity to most outlets. In fact, Macedo says, 'We're undeveloped in Florida,' suggesting that are many inland and coastal locations, north of Miami haven't been tapped yet. He admits that years down the road they may consider contiguous states beyond Florida's border. But that's long-term.
