M&A activity heats up for franchise operators

Applebee’s units in Virginia

Dallas-based multiconcept franchise operator SSCP has acquired 12 Applebee’s locations in Virginia, the company announced recently, marking another example of growing consolidation within the restaurant franchise space.

The acquisition brings the franchise operator’s Applebee’s unit count to 80. SSCP and affiliates also own and operate 46 Sonic Drive-Ins, and is the parent to Roy’s Hawaiian Fusion and the franchisor of Cici’s Pizza.

With the new Applebee’s units — which were sold by Apple Investors Group — the family owned SSCP now operates about 400 restaurants across 25 states.

“We are excited to continue to grow the Applebee’s brand and our collective business,” said Chris Dharod, SSCP president, in a statement. “Applebee’s continues to be the leader in casual dining. Our business is vibrant, and we are continuing to outperform established peers.”

Jordan Hospitality buys 21 Donatos in Indianapolis

Columbus, Ohio-based Jordan Hospitality Group acquired all 21 Donatos units in the Indianapolis market, making it the largest of the brand’s franchise operators.

Equity investment for Taco Bell-operator ABTB Holding Company LLC

The multiconcept franchise group ABTB Holding Company LLC has won an equity investment from Balance Point Capital, in conjunction with affiliated funds Balance Point Capital Partners III LP and Balance Point Capital Partners V LP, it was announced this week.

ABTB owns a portfolio of Taco Bell, Pizza Hut and KFC restaurants across Northern Virginia and the Washington, D.C. metro area. The company is managed by quick-service operator SWN LLC, known as Southpaw, which says it plans to continue growing both through acquisition and new development. Southpaw operates 135 Taco Bell and Dunkin’ restaurants across seven states.

90 KFC restaurants across 8 states sold

KFC

Los Angeles-based franchise operator Tasty Chick’n LLC has completed the acquisition of 90 KFC units across eight states.

Tasty Chick’n is part of the restaurant management company Tasty Restaurant Group, which is affiliated with private-equity firm Triton Pacific Capital Partners.

131 Applebee’s locations in 14 states

Dine Brands Global

In November, Sun Holdings Inc. acquired 131 Applebee’s units that had been operated previously by RMH Franchise across 14 states. Longtime franchise owner Sun Holdings had bought a group of IHOP restaurants in 2020, and the company is also a franchisee of Arby’s, Burger King, McAlister’s, Papa Johns and Popeyes.

Also in November, one of the largest Taco Bell franchise operators Pacific Bells LLC was acquired by investment firm Orangewood Partners. Pacific Bells founder and CEO Tom Cook retained a minority stake and will continue to operate the more than 250 restaurants.