FYI December 2006
Darden Opens New Restaurant
Rocky River Grillhouse is a possible new iteration of the Smokey Bones concept, company officials said.
Darden Restaurant has quietly opened a new bar-and-grill restaurant in Ohio, designed to be a potential alternative to its struggling Smokey Bones barbecue chain.
The new restaurant, called Rocky River Grillhouse, is located in Cuyahoga Falls, south of Cleveland. Darden confirmed that the restaurant was a possible new iteration of the Smokey Bones concept but declined to offer additional details.
For months, executives at Darden have been hinting that a major overhaul of Smokey Bones was in the works, including a possible name change.
Clarence Otis, chief executive officer of Darden and a former executive at Smokey Bones, has said that the chain needs to move away from its barbecue-centric focus and broaden its appeal to a wider dining audience. Executives discovered that customers at Smokey Bones were not returning to dine on the restaurant's pulled pork sandwiches and ribs as frequently as they would have liked.
As for the Rocky River Grillhouse, there is little hint of the barbecue and sports-bar themes that came to characterize Smokey Bones. Instead, the restaurant's Web site features large photos of grilled tenderloin filets artfully presented with mashed potatoes, asparagus and fire-grilled salmon.
An article earlier this week in USA Today reported that the company is also considering the acquisition of brands. “We're doing extensive research on possibilities,” chief executive Clarence Otis was quoted as saying. The article cited such acquisition candidates as B.J.'s Restaurants, Granite City Food & Brewery and Kona Grill.
Roark Capital Group Acquires Schlotzsky's, Ltd.
Private equity firm acquires its eleventh franchise company; center-of-the- plate concept joins FOCUS Brands' sister companies Carvel® Ice Cream, Cinnabon®, and Seattle's Best Coffee® International
Roark Capital Group, an Atlanta-based private equity firm, announced today the acquisition of Schlotzsky's, Ltd. Schlotzsky's is a quick casual restaurant chain offering made-to-order sandwiches, soups, salads, and pizza. Founded in 1971 as the home of the Original™ toasted sandwich and headquartered in Austin, Texas, Schlotzsky's has approximately 365 franchised and company-owned locations generating $210 million of system-wide revenues throughout the United States and six foreign countries.
Schlotzsky's has become a wholly owned subsidiary of FOCUS Brands, Inc., a company owned by affiliates of Roark Capital Group. Also based in Atlanta, FOCUS Brands is the franchisor and operator of nearly 1,400 ice cream stores, bakeries, and cafes under the brand names Carvel, Cinnabon, and Seattle's Best Coffee. With its acquisition of Schlotzsky's, FOCUS Brands now has four franchise brands generating nearly $800 million in system-wide revenues through over 10,000 points of distribution in 50 states and 33 countries.
According to Neal Aronson, founder and managing partner of Roark, “Schlotzsky's is a great fit for us. It is a well known brand with high quality, freshly made, differentiated products that people love.”
Sbarro Airs Purchase Price
Sbarro Inc. revealed Tuesday in a government filing that its new owner, the private equity firm MidOcean Partners, paid $417 million to acquire the 1,000-unit Italian quick-serve company.
MidOcean, based in London and New York, has said it plans to accelerate growth of the brand's core concept.