ARC Group Inc., parent to the Dick’s Wings & Grill casual-dining brand, has agreed to acquire the four-unit Fat Patty’s concept for $12.3 million, the company said Monday.
Jacksonville, Fla.-based ARC, which agreed in June to buy the struggling 47-unit Phoenix, Ariz.-based Tilted Kilt Pub and Eatery concept, said the Fat Patty’s deal is expected to close on Friday, Aug. 31.
ARC, formerly known as American Restaurants Concepts, said Fat Patty’s, which started in Huntington, W. Va., has potential for franchising. Fat Patty’s has three casual-dining units in West Virginia and one in Kentucky.
“We are very excited to acquire Fat Patty’s, a very successful franchise, which we believe will be a terrific addition to our portfolio of leading restaurant brands,” said Seenu Kasturi, ARC Group president and chief financial officer, in a statement.
“We believe that we can significantly expand the Fat Patty’s franchise over time, while improving the profitability of its existing restaurants,” Kasturi said.
Fat Patty’s offers specialty burgers and sandwiches, wings, appetizers, salads, wraps and steak and chicken dinners in a casual-dining environment. Each restaurant has a full bar and several large, flat-screen televisions.
ARC said Fat Patty’s, had unaudited 2017 annual revenue of more than $11 million and $700,000 in net income.
ARC reported about $4.4 million in 2017 revenue and $340,000 of net income.
The acquisition of Tilted Kilt is expected “within the next few months” as ARC works on funding, the company said. The Tilted Kilt franchise generated almost $14 million in 2017 revenue, the company said.
ARC’s Dick’s Wings has 15 restaurants in Florida and five in Georgia. It also has three sports-venue concession stands.
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