Company sees burger brand as growth opportunity
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Chanticleer Holdings Inc. has closed on its purchase of BGR: The Burger Joint, the company said Wednesday.
Terms of the deal were not disclosed, but Charlotte, N.C.-based Chanticleer, which franchises Hooters domestically and abroad, said Lansdowne, Va.-based BGR provides the company with an expansion concept.
“BGR increases our number of locations by 77 percent and provides an attractive growth opportunity for Chanticleer,” said Mike Pruitt, Chanticleer’s CEO.
Including 20-unit BGR, Chanticleer now has 46 locations worldwide, including 13 Hooters restaurants, six American Burger Co. units and a majority interest in seven Just Fresh locations. The company said it expects to open three to five new BGR franchise locations and two Hooters units before the end of the year.
“BGR has clearly proven its better-burger concept as a franchise opportunity, with over 80 franchise development agreements in place,” Pruitt said. “We look forward to utilizing our platform in our international markets to continue extending the growth of an already successful franchise.”
Chanticleer said BGR ended 2014 with nine company-owned and nine franchised locations, and more than $15 million in systemwide sales. In the first quarter, BGR opened its first international franchise location in Kuwait, and another domestic franchise location. The concept features open-flame grilled Prime, dry-aged burgers served on buns from local bakeries.
Nate Ripley, BGR’s president, said in a statement: “This is an exciting time for BGR as we look to step up our expansion strategy in both international and domestic markets.
“Having Chanticleer's team support our vision,” he added, “we believe together we have the expertise and platform necessary to expand BGR's footprint exponentially worldwide.”
Chanticleer acquired the fine-dining Spoon Bar & Kitchen in Dallas, in January 2014, for $1.1 million in stock and warrants. At the time, the company said it intended to open additional fast-casual offshoots of the Spoon concept, created by Dallas chef John Tesar, but the restaurant closed on Dec. 31 with no expansion.
Chanticleer Holdings and its subsidiaries have franchised Hooters locations in Australia, Europe and South Africa, as well as two in the United States.
Contact Ron Ruggless at [email protected].
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