Togo’s Eateries Inc. will be acquired by private-equity firm Nimes Capital, the sandwich chain said Tuesday.
Co-owner Mainsail Partners has agreed to sell its stake in Togo’s, but chain CEO Tony Gioia will retain his ownership and continue to lead the brand’s ongoing revitalization effort, the company said. Terms of the deal were not disclosed.
David Nazarian, Nimes Capital founder and CEO, said in a statement: “Togo’s represents the type of business Nimes looks for, with a long history of success, a great management team staying in place, and numerous positive future prospects.”
Nimes is the investment arm of Nazarian Enterprises, created to diversify and manage the capital of the wealthy Nazarian family, with roots in Los Angeles.
The firm is also a stakeholder in the Los Angeles-based Umami Burger chain, as well as the SBE hotel, restaurant and nightclub group that owns the SLS hotel brand and the Katsuya and Cleo restaurant concepts. Investments also include TD Food Group Inc., a large Yum! Brands Inc. franchisee, with about 83 Taco Bell and Pizza Hut restaurants.
Under Gioia and Mainsail, who together owned the 251-unit chain since 2007,Togo’s has reworked its brand image by remodeling restaurants, improving operations, and launching online and mobile ordering.
“Our partnership with Mainsail has allowed us to achieve so much over the past eight years,” Gioia said in a statement. “As with all private-equity funds, there is an end point to their investment horizon, and in preparation for that moment, we began a thorough search for new investors. We could not be more pleased to welcome Nimes as our new partners and owner. They embrace our values and culture, and they will help us take Togo’s to the next level.”
Togo’s executive team, including chief operating officer Jim Peros, chief marketing officer Renae Scott, chief development officer Todd Peterson and chief financial officer Susan Koch, will stay in place under Nimes’ ownership, the company said.
Togo’s was founded in 1971, and is known for its big, meaty sandwiches on freshly baked breads, including its top-selling hot pastrami sandwich, known as the No. 9.
The chain’s average unit volume of $660,000 is one of the highest in the quick-service sandwich segment, the company said, noting that more than 20 percent of the mostly franchised system performs at or more than $813,000.
Contact Lisa Jennings at [email protected].
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