BOCA RATON, Fla. -- Sun Capital Partners Inc., a private investment firm, has completed the sale of its investment in Fazoli’s Group Inc., a quick-service Italian restaurant with 124 company-owned and 89 independent franchised locations in 26 states, to private-equity firm Sentinel Capital Partners.
The firms did not disclose the terms of the transaction.
Based in Lexington, Ky., Fazoli’s is focused on a variety of traditional and innovative Italian food offerings, including its signature freshly baked breadsticks, fresh-made pastas, Submarinos, pizza, salads and desserts.
In recent years, the concept has been focusing on expansion into the convenience-store and travel-center channels, opening units with Par Mar Oil Co. in West Virginia, Rainbo Oil Kwik Stop in Colorado and LOCO Inc. in Texas, with more in the development pipeline.
Sentinel Capital, New York, owns the Checkers and Rally’s drive-thru brands, the Newk’s Eatery fast-casual sandwich concept, the TGI Fridays casual-dining chain and Huddle House family dining chain, among other portfolio companies and brands.
After Sun Capital acquired Fazoli’s in 2006, it implemented significant operational initiatives that resulted in same-store sales growth and improved profitability. These initiatives included management team enhancements, the revitalization of the company’s menu through an improvement in food quality and variety, investments in internal and external facility and décor updates, the introduction of enhanced guest experience and service programs, a refining of marketing tactics and the implementation of cost-saving initiatives that streamlined operations.
“The largest menu upgrade in the company’s history combined with a renewed focus on providing its customers with an enhanced dining experience has positioned Fazoli’s as a strong player in the premium QSR/fast casual segment, with plenty of opportunity for future growth,” said M. Steven Liff, senior managing director at Sun Capital.
Boca Raton, Fla.-based Sun Capital has expertise in the restaurant sector through its investments in current and former affiliated portfolio companies including Bar Louie Restaurants, a neighborhood bar and eatery; Boston Market, a fast-casual restaurant serving home-style meals; and Captain D’s, a leading seafood quick-service restaurant (QSR).
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