LOS ANGELES — Two key transactions in the quick-service restaurant category closed on Dec. 16 — FAT (Fresh. Authentic. Tasty.) Brands Inc.’s acquisition of Fazoli’s and Restaurant Brands International Inc.’s acquisition of Firehouse Restaurant Group Inc.
Toronto-based RBI’s $1 billion purchase of Firehouse Subs was first announced in mid-November. Founded in 1994 by brothers and former firefighters Chris Sorensen and Robin Sorensen, Firehouse Subs has approximately 1,200 quick-service sandwich shops across 46 US states, Canada and Puerto Rico, and is expected to generate approximately $1.1 billion in systemwide sales this year. Franchisees own and operate 97% of the brand’s restaurants. The chain offers hot sandwiches featuring steamed meats and cheeses on a toasted sub roll, plus chopped salads, chili and soups.
FAT, meanwhile, paid $130 million to acquire Fazoli’s from Sentinel Capital Partners. The transaction was first announced in early November.
Headquartered in Lexington, Ky., Fazoli’s operates more than 200 restaurants serving freshly prepared pasta, Submarinos sandwiches, salads, pizza, breadsticks and desserts.
Founded in 1988, Fazoli’s is the largest premium quick-service Italian chain in the United States and currently has plans to develop 100 units over the next several years.
“This has been a year of tremendous growth for FAT Brands,” said Andy Wiederhorn, chief executive officer of 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. 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.”