Purchase of Fox Restaurant Concepts includes Flower Child
The Cheesecake Factory closed its Fox Restaurant Concepts (FRC) acquisition, including Flower Child. It also completed its acquisition of North Italia. The transaction value totaled $308 million paid at closing, matching the amount disclosed earlier. Per the FRC acquisition terms, The Cheesecake Factory will also pay an additional four installments. Split equally, these total $45 million over the next four years.
The purchase of North Italia ($130M) gives The Cheesecake Factory total control over a polished, casual-dining concept that aligns with its own namesake concept. Currently, North Italia operates 21 upscale, casual-dining restaurants in 10 states, in addition to the District of Columbia. It received an investment from the Cheesecake Factory in 2016.
The Flower Child fast-casual chain will continue to expand. The Cheesecake Factory will fuel that grow post FRC acquisition. In the fast-casual restaurant segment, Flower Child operates as a better-for you dining concept. Flower Child also makes it easy for health-conscious consumers to follow regimented diets, including Paleo and Keto, while eating out.
Previously, Calabasas, Calif.-based Cheesecake Factory invested $88M total in Flower Child and North Italia. The Modern Italian concept’s operations will move to the corporate offices of its new parent. Also, FRC will continue to operate out of Phoenix, Ariz.
As for FRC, the relationship has deepened over the years. Cheesecake had said Sam Fox, founder and chief executive will remain in the top post after the acquisition (for $178M). Fox was named one of the most influential people in the restaurant industry. This is according to Nation’s Restaurant News and it’s his firth award.
Photo credit: North Italia
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