May/June 2023

Have There Been Successes When Restaurants Sold To Private Equity Firms

Yes, there have been numerous successful instances where restaurants have sold to private equity firms. Private equity firms can bring valuable resources, expertise, and strategic guidance that can contribute to the success and growth of the restaurant. Some examples of successful restaurant acquisitions by private equity firms include: Shake Shack : The popular burger chain, Shake Shack, sold a minority stake to private equity firm Leonard Green & Partners in 2012. This partnership provided the financial backing and expertise needed to fuel expansion and scale the brand, leading to its successful IPO in 2015. P.F. Chang’s : Private equity firm Centerbridge Partners acquired P.F. Chang’s China Bistro in 2012. Under their ownership, the restaurant chain experienced significant growth and expansion both domestically and internationally. Panera Bread : Private equity firm JAB Holding Company acquired Panera Bread in 2017. The partnership

helped Panera Bread accelerate its digital and delivery capabilities, resulting in increased sales and market presence. MOD Pizza : Private equity firm PWP Growth Equity invested in MOD Pizza in 2015. With their support, MOD Pizza expanded rapidly and became one of the fastest-growing fast-casual pizza chains in the United States. These are just a few examples highlighting successful partnerships between restaurants and private equity firms. However, it’s important to note that each case is unique, and the success of such acquisitions depends on various factors, including the specific goals, strategies, and capabilities of the private equity firm and the restaurant’s management team. Thorough due diligence, careful negotiation, and finding the right partner are crucial steps to maximize the potential for success in such transactions.

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