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The Big Bite: Blackstone’s $8 Billion Jersey Mike’s Subs Acquisition The sandwich industry's landscape is dramatically shifting as Jersey Mike's prepares to expand from 3,000 to 10,000 locations under Blackstone's new majority ownership. This transformative $8 billion deal will accelerate the chain's growth into Canada while maintaining its commitment to fresh-sliced, made-to-order subs that have made it America's fastest-growing restaurant chain.

In the latest edition of Restaurant Finance Monitor, Dennis Monroe, JD, MBA discusses restaurant leases: “During the pandemic, restaurant leases mostly were renegotiated for an interim period, but now you must find long-term solutions for both good and bad sites.” Dennis explores finding ways to get out of a bad site, and tips for negotiating for the future of good sites. Read the full article here:  https://bit.ly/3P4OX89

One Table Restaurant Brands, the parent company of Tender Greens and Tocaya Modern Mexican, has filed for bankruptcy to restructure its debt and prepare for a potential sale. The company, which operates 39 locations across California and Arizona, faced significant financial strain due to pandemic-related challenges, high debt from pre-pandemic expansions, costly landlord settlements, and increased operational costs. Tender Greens, with a “farm-to-fork” concept, has seen some recovery, while Tocaya continues to struggle with declining sales. The company's debt exceeds $16 million. To support ongoing operations, One Table has secured financing from Breakwater Management LP. Read More Here: https://lnkd.in/ewqkf_uj QSR #hospitality #bankruptcy #restaurants #technology huntley castner Robert Morago Jr Annie Svitak Oliver Plust Branded Hospitality Ventures Tim Dolan Rudy Sugueti Paige Morrison Wiley mel landuyt

CASUAL DINING PROBLEMS Regarding the potential TGI Fridays bankruptcy as reported by Restaurant Business Online and Joe Guszkowski: it is a very old brand. Coming out of the Upper East Side of Manhattan in 1965, over time it lost its allure as a singles place and morphed into casual dining sameness. Its long time under the Carlson Hotel Group did it no favors. The now cancelled merger with its UK franchisee was a gasp for air. As I noted in my Wray Executive Search October column (see link below), casual dining brands under $3 million AUV will have troubles, especially franchised brands. Less than $3 million AUV does not generate enough EBITDA dollars to cover all the other expenses and outlays under the EBITDA line. Franchisees must pay royalties also. Note that Darden does not have these problems. Casual dining sameness and refranchising were big blows. I wish Friday's well, but radical updates and restructuring under new ownership and management is the best path out of this situation. https://lnkd.in/gtriKJdZ https://lnkd.in/gtDkuRcJ

Ron Ruggless gives us the scoop on STK and Kona Grill owner agreeing to buy Safflower Holdings in transaction expected by end of Q2. One Group Hospitality Inc., owner of the STK and Kona Grill concepts, will acquire Safflower Holdings Corp, the parent to the Benihana teppanyaki brand and RA Sushi Bar Restaurant, in a $365 million deal, the company said Tuesday. Denver-based One Group said the deal would be financed with $160 million in preferred equity and part of a new $390 million term loan and credit facility. The preferred equity will be primarily issued to Hill Path Capital, the company said. The deal is expected to close by the end of the second quarter, giving One Group a total of 168 full-service venues, the company said. One Group, in its fourth quarter earnings call in mid-March, also said it is planning a new seafood restaurant called Saltwater Social in Denver. Benihana, founded in 1964, has 88 company-owned restaurants and franchises or licenses another 17 locations in the Americas. Once closed, One Group said in a press release, the acquisition is expected to add about $575 million in annualized systemwide revenue and about $70 million in annual run-rate earnings before taxes, depreciation and amortization. The company said synergy savings could be $20 million a year. “We are delighted to welcome Benihana, an American cultural icon with timeless appeal that transcends generations and offers unparalleled guest experiences, to the One Group family,” said Emanuel “Manny” Hilario One Group president and CEO, said in a statement  “The strategic acquisition of a one-of-a-kind restaurant platform with a compelling financial profile supports our broader strategy to fortify and diversify our leading portfolio of best-in-class experiential vibe restaurant concepts,” Hilario said. One Group Hospitality Inc., owner of the STK and Kona Grill concepts, will acquire Safflower Holdings Corp, the parent to the Benihana teppanyaki brand and RA Sushi, in a $365 million deal, the company said Tuesday. Denver-based One Group said the deal would be financed with $160 million in preferred equity and part of a new $390 million term loan and credit facility. The preferred equity will be primarily issued to Hill Path Capital, the company said...more" #entrepreneur #entrepreneurship #Restaurants #Franchise #Franchising #FranchiseChat Chainformation RAAMP Altir Industries, Inc. Franchise Pipeline Franchise Development Outsource Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Landrum Randolph Jonathan Martin Michael Scherr https://lnkd.in/eNhipA5q

How can brands protect struggling franchisees from bankruptcy? In this "Ask an expert" article for Restaurant Dive, Christopher Desiderio discusses the issues driving restaurant bankruptcies and provides best practices for franchisees and franchisors. https://lnkd.in/gpheMQvB

This transaction is significant for the fast-casual restaurant sector for several reasons. First, it demonstrates the continued strong interest from private equity in acquiring successful restaurant brands. Blackstone's investment in Jersey Mike's, following their acquisition of Tropical Smoothie Cafe, highlights their confidence in the growth potential of this segment. Second, Jersey Mike's impressive performance, with strong unit growth and high average unit volumes, underscores the potential for continued success in the fast-casual sandwich market. The chain's focus on high-quality ingredients and a strong brand identity has clearly resonated with consumers. Finally, this deal may signal a trend towards further consolidation in the fast-casual restaurant industry, with larger players like Blackstone acquiring smaller chains to expand their market share and leverage economies of scale. Blackstone's commitment to investing in the transformation at Jersey Mike's also suggests a growing emphasis on enhancing the customer experience and operational efficiency in the sector. Overall, the sale of Jersey Mike's to Blackstone suggests a positive outlook for the fast-casual restaurant sector, particularly for brands with strong growth potential, a commitment to quality, and a dedication to innovation.

How to scale up restaurant brands. It's one thing to have a great solo concept, it's quite another to scale up that concept into a franchise. A panel at the Restaurant Franchising and Innovation Summit looked at how restaurants can scale up from start up to full growth mode. http://ow.ly/e8xV105v61R

One Table Restaurant Brands, the parent company of Tender Greens and Tocaya Modern Mexican, has filed for bankruptcy to restructure its debt and prepare for a potential sale. The company, which operates 39 locations across California and Arizona, faced significant financial strain due to pandemic-related challenges, high debt from pre-pandemic expansions, costly landlord settlements, and increased operational costs. Tender Greens, with a “farm-to-fork” concept, has seen some recovery, while Tocaya continues to struggle with declining sales. The company's debt exceeds $16 million. To support ongoing operations, One Table has secured financing from Breakwater Management LP. Read More Here: https://lnkd.in/eJHcc7As QSR #hospitality #bankruptcy #restaurants #technology huntley castner Robert Morago Jr Annie Svitak Oliver Plust Branded Hospitality Ventures Tim Dolan Rudy Sugueti Paige Morrison Wiley mel landuyt

How to scale up restaurant brands. It's one thing to have a great solo concept, it's quite another to scale up that concept into a franchise. A panel at the Restaurant Franchising and Innovation Summit looked at how restaurants can scale up from start up to full growth mode. http://ow.ly/9NGX105v61L