Pat & Oscar's bought by managementPat & Oscar's bought by management

Lisa Jennings

SAN DIEGO After more than a year on the market, the 19-unit fast-casual Pat & Oscar’s chain has been acquired by a group of the chain’s top executives, including industry veterans John Kaufman and Tim Foley, the group said Thursday.

Based in San Diego, the Pat & Oscar’s chain was previously owned by Australia-based Pacific Equity Partners, or PEP, which also owns the Sizzler USA grill chain. PEP announced plans to sell both Pat & Oscar’s and Sizzler in 2007, though the brands were later taken off the market because of declining economic conditions.

Terms of the buyout were not disclosed.

Kaufman, whose executive-level experience includes the California Pizza Kitchen, Koo Koo Roo and Famiglia Toscana Rosti chains, stepped in as president and chief executive of Pat & Oscar’s in April 2008 with acquisition in mind. He replaced previous chief executive John Wright, who stepped down to pursue a Pizza Hut franchise opportunity in Brazil.

Joining Kaufman at Pat & Oscar’s in April was his business partner Foley, who took the title executive vice president. Foley’s prior management experience includes stints at Rosti, Houston’s and the St. Regis Resorts.

Four years ago, Kaufman and Foley formed a management company to develop new concepts and look for possible acquisitions. The two currently own and operate the casual-dining Truxton’s American Bistro and fast-casual variant Truxton’s Short Order in Los Angeles, and Kaufman said they plan to grow both brands.

Kaufman and Foley hold the majority stake in Pat & Oscar’s, but the buyout includes Pat & Oscar’s chief financial officer, Brent Dunkin, and chief operating officer, George Hunter, as well as management down to the store level, said Kaufman.

He added that the group is continuing to look for long-term equity partners that believe in the Pat & Oscar’s concept.

“Our goal is to rebuild the brand. It’s the second coming of Pat & Oscar’s,” said Kaufman, who said he has been a fan of the fast-casual concept since his days as president and chief operating officer of Koo Koo Roo in the late 1990s. “When I was at Koo Koo Roo, I was jealous of Pat & Oscar’s because they had the family diner figured out.”

Known for its signature breadsticks, family-style dining and broad “veto-less” menu of pizza, pasta, ribs and chicken, Pat & Oscar’s had announced plans to begin franchising under Wright’s leadership, but Kaufman said there was little interest at the time because of the uncertainty of ownership.

Since Kaufman came on board, however, the franchising push was renewed and the chain plans to announce the sale of four company units to two franchisees within about two weeks.

Going forward, Kaufman said they hope future growth will be about 70-percent franchise and 30-percent corporate units.

Since April, Kaufman has moved the corporate office from the San Diego neighborhoods of Mira Mesa to Carlsbad, and cut home office staff by about eight positions in an effort to cut expenses.

When Kaufman joined the company, he said same-store sales were down about 15 percent over the previous year. Despite the challenging economic conditions that have hindered sales across all segments, the chain is now down about 10 percent year-over-year, he said. “We have definitely moved the needle.”

Contact Lisa Jennings at [email protected].