KarpReilly buys ‘significant’ stake in five-unit concept
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Lisa Jennings
The five-unit Burger Lounge chain has received a “significant” investment from private-equity firm KarpReilly LLC in a move that will support new growth, the concept’s founder said.
Burger Lounge founder J. Dean Loring declined to specify the investment amount from KarpReilly’s, whose restaurant portfolio includes Café Rio Mexican Grill, Café Zupas, Elephant Bar, Miller’s Ale House, and Z’Tejas Southwestern Grill.
The Greenwich, Conn.-based private equity firm also owns The Habit Burger Grill, based in Santa Barbara, Calif., another fast-casual better-burger brand with 33-units and growing.
Karp Reilly principals Allan Karp and Chris Reilly did not return requests for comment, but Loring said last week the firm felt that Burger Lounge and The Habit were not direct competitors because of their different price points and products.
Burger Lounge is scheduled to open in Los Angeles later this year, the first location outside its home market of San Diego. Three new locations are planned for 2011, with another five scheduled to open next year, including units in the San Francisco Bay area, Loring said.
With an average check of about $12 per person and average unit sales of about $1.5 million, Burger Lounge offers a short menu of burgers made from organic, grass-fed beef, which the company said is sustainably produced by independent ranchers.
Though fast casual, the concept borrows elements from fine dining, including fresh pepper that is ground tableside on salads made with organic greens and house-made dressings.
Buns are made of organic whole wheat and white flours, and burgers are served with twice-fried Belgian-style fries, flecked with parsley. The menu includes beer and wine and hand-dipped shakes, along with cupcakes.
Loring said Burger Lounge’s growth would continue to be careful and conservative.
“We want to make sure it stays within the framework of our infrastructure,” he said.
Contact Lisa Jennings at [email protected].
