Restaurant & QSR Expansion Report

Have You Heard…….

One of the largest Buffalo Wild Wings franchisees, Southfield, Michigan-based Diversified Restaurant Holdings Inc., has closed on its acquisition of eighteen Buffalo Wild Wings restaurants in the St. Louis area.  It now owns the entire St. Louis market for Buffalo Wind Wings and it believes that there are additional opportunities to expand the brand. The transaction was valued at $54-million.  In addition to operating 60 Buffalo Wild Wings Grill & Bar franchised restaurants in Indiana, Illinois, Michigan, Missouri and Florida, Diversified Restaurant is also the creator, developer and operator of the 26 Bagger Dave’s Burger Tavern chain of full service casual restaurant and bar units in Michigan and Indiana. A public company, Diversified Restaurant Holdings has updated its previous outlook for fiscal year 2015 to reflect the closing of this transaction. The company also reiterated that it is likely to be at the low-end of its previous range for capital expenditures. Revenue of $168.0-million to $174.0-million are anticipated, compared to $148.0-million to $153.0-million pre-acquisition. Eight to nine new restaurant openings, consisting of five to six Bagger Dave’s and three Buffalo Wild Wings are expected. Inclusive of this eighteen restaurant acquisition, DRH should end the year with between 93 and 94 restaurants, consisting of 30 to 31 Bagger Dave’s and 63 Buffalo Wild Wings (248/223-9160 www.diversifiedrestaurantholdings.com)..........

The Pittsburgh, Pennsylvania-based Primanti Bros chain of sandwich shops will be opening its first Maryland location in late Fall, according to reports in the HeraldMailMedia.com. The 6000 square foot casual restaurant will open on the north side of the Valley Mall in Hagerstown.  Established in 1933, the chain currently operates 20 corporately owned restaurants in Pennsylvania, two in West Virginia and three in Florida, all featuring a variety of  ‘overstuffed’ sandwiches with French fries and coleslaw along with pizza, wings and beer. (412/325-2455 www.primantibros.com)........

First Watch Restaurants is expanding its team.  In late June the chain of growing breakfast, brunch and lunch restaurants hired David Gonzalez as Vice President, Franchising and Danny Foster as Vice President, Design and Construction. Gonzalez joins the First Watch after serving as Vice President of Franchising at Le Duff America, where he was responsible for franchise recruitment for La Madeleine and Bruegger’s Bagels. From 2009 to 2014, he served as Executive Vice President of outsourcing firm Franchise Dynamics. At First Watch, he will be responsible for developing new franchise partnerships and fostering the brand’s current franchise relationships. Foster joins the First Watch team after spending 15 years in purchasing, construction and development with brands like Outback Steakhouse and Bonefish Grill.  He will lead First Watch’s construction team and oversee design and development for both remodels and new restaurant openings. In May, Bradenton, Florida-based First Watch acquired 114 The Egg & I Restaurants, almost doubling the company’s size and reach (941/907-9800 www.firstwatch.com) …….

In early July, Trevose, Pennsylvania-based Italian ice concept Rita’s Italian Ice reported that it is continuing its international expansion and has awarded its fifth international master franchise agreement for the development of Puerto Rico, the U.S. Virgin Islands and British Virgin Islands. This latest international master franchise agreement has been awarded to Puerto Rita’s LLC, led by Jack Maxey, Joseph Roskos, Lamont Harris and Mark Cook, for the development of 20 units by 2024. The first location is expected to open in 2015 in Old San Juan. This comes as another international franchisee, Canada Water Ice Co. Ltd., opened its first three stores in Calgary, Alberta at the Joey’s Urban restaurants. Beyond the partnership with Joey’s, Rita’s introduced its Italian ice and signature frozen custard at the Calgary Stampede Midway with two locations from July 3rd to 12th. With over 600 locations in the United States, Canada and the Philippines and soon in the Middle East and the Caribbean, Rita’s features a variety of ‘cool treats’, including its Italian Ice, made fresh daily with real fruit and available in more than sixty-five flavors, its Old-Fashioned Frozen Custard, sundaes, frozen custard cakes, etc. (800-677-7482 www.ritasice.com)…….

Earlier in June, Boston-based Wilcox Hospitality Group opened a new Cluckit! restaurant featuring a Portuguese influenced Piri Piri grilled poultry, seafood and meat menu.  The unit is on Tremont St. at company’s former Estelle’s restaurant that opened in late 2012 in Boston’s South End. (857/250-2999….

Casual dining fondue chain The Melting Pot Restaurants Inc. reports that a recently closed unit in the Jefferson Green Shopping Center on Jefferson Ave. in Newport News in Virginia is available for re-opening under new ownership. Originally opened in July 2006, the location was closed in late June for compliance reasons related to its franchise agreement. “The Melting Pot has a strong interest in the Newport News market and we look forward to finding a candidate to re-open our location in the area,” said Dan Stone, Chief Business and People Development Officer for Front Burner Brands. “This is a turn-key business opportunity to join our brand with a low cost of entry in comparison to building a new Melting Pot from the ground up.” The Melting Pot has six additional restaurants throughout Virginia. The chain operates 130 restaurants in the United States, Canada, Mexico and Southeast Asia and has more than 20 locations in development internationally. (800/783-0867 ext. 105, sturner@meltingpot.com, www.meltingpotfranchise.com)........

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