O’Charley’s sells commissary, makes supply chain changesO’Charley’s sells commissary, makes supply chain changes

NASHVILLE Tenn. O’Charley’s Inc., the 363-unit casual-dining company that operates O’Charley’s, Ninety Nine Restaurant and Stoney River Legendary Steaks, said it has completed the divestment of its 185,000-square-foot commissary facilities here.

The commissary was sold along with 12 acres of land to an affiliate of W.P. Carey & Co. LLC, a real-estate investment firm, for $9 million. WPC has leased the commissary facility to Denver-based Mountain City Meat Co., which will serve as meat processor for the O’Charley’s brands.

As part of the transition, O’Charley’s Inc. also signed an agreement with Performance Food Group, which becomes the exclusive distributor for the O’Charley’s and Stoney River brands. PFG agreed to acquire O’Charley’s distribution inventories at cost while assuming tractor and trailer leases.

The casual-dining company also said Cornerstone Baking would manufacture the frozen dough used for O’Charley’s signature yeast rolls. As part of the agreement, Cornerstone will acquire certain manufacturing equipment from O’Charley’s.

Meanwhile, the company has outsourced its salad dressing manufacturing and poultry processing, and plans to close its manufacturing operations in Woburn, Mass. O’Charley’s said it would continue to explore alternatives for its Bellingham, Mass., distribution center.