Doling out of $150M takes franchisor Fat Brands to more than 2,300 locations in its system
Fat Brands completed the acquisition of both fast-casual Fazoli’s and casual-dining wings-and-sports bar chain Native Grill and Wings. The franchisor paid $130M for Italian chain Fazoli’s and $20M for Native. The acquisition of both chains will put the number of restaurants in the Fat Brands multi-concept system at 2,300+ locations.
After these acquisitions, system sales at Fat Brands now total more than $2.2B.
Fazoli’s for $130M
The purchase of Fazoli’s places Fat Brands deep into the Italian category of the fast-casual segment. The Italian chain has 200 locations and another 100 in the development pipeline. Fazoli’s serves quick, Italian food, including pasta entrees, its signature Submarinos sandwiches, salads, pizza, and desserts.
“This has been a year of tremendous growth for Fat Brands. While we have focused on expanding our footprint and scale via strategic acquisitions, we also continue to show strong same-store sales systemwide,” said Andy Wiederhorn, chief executive of Fat Brands. “Fazoli’s has had an outstanding year when it comes to brand performance with three quarters of record-setting sales. We are eager to integrate Fazoli’s into our portfolio, working with CEO Carl Howard and team to build upon this great success going into 2022.”
Native for $20M
The acquisition of Native from Cybek Capital Partners, a surprise purchase to many industry observers, will add 23 franchised locations across Arizona, Illinois, and Texas to the portfolio of Fat Brands. Native’s menu is headlined by over 20 wing flavors, in addition to a wide selection of pizza, burgers, sandwiches, and salads offered.
Wiederhorn commented, “Chicken wings make up a key part of Fat Brands’ diverse portfolio. Prior to forming Fat Brands, Fatburger’s first acquisition was a wing brand, Buffalo’s Cafe, in 2011. We have a strong pulse on the space having been in it for a decade now. Native Grill & Wings further complements our domestic presence, providing a larger footprint for us on the West Coast when it comes to our wing brands.”
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