Morven Groves featured in QSR Magazine: 2021 Was the “Year of Acquisitions” for Restaurants – Will It Continue?
2021 Was the “Year of Acquisitions” for Restaurants – Will It Continue?
After evaluating pandemic performance throughout the strangest year on record for restaurants, 2021 has turned into the “Year of Acquisitions.” According to a Duff & Phelps report, Q2 2021 was the strongest period since 2015 in terms of the number of deals for the food and beverage space.
In November, FAT Brands announced its intention to buy 23-unit Native Grill & Wings for $20 million. The chain, based in Chandler, Arizona, will become FAT Brands’ 17th brand, and soon join Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean, Ponderosa and Bonanza Steakhouses, and Fazoli’s (transaction hasn’t closed yet).
Less than a week after FAT Brands’ late June purchase of Global Franchise Group, Yum! Brands franchisee Ampex Brands bought 171-unit bakery-café concept Au Bon Pain from Panera Bread.
When these acquisitions hit the wire, investors and advisers were not exactly surprised. These deals merely continued a trend 10 Point Capital Vice President Morven Groves witnessed within other industries, notably hotels, for years. Restaurant companies, at this stage, appear to be consolidating to form a platform of brands.