SPB Hospitality Sells Brewery Brands to Kelly Companies - A Strategic Move in the Restaurant Industry
Learn about the recent acquisition deal where SPB Hospitality sold five brewery brands to Kelly Companies, reshaping their focus and portfolio in the restaurant industry.
Strategic Business Move
SPB Hospitality, known for its ownership of popular brands like Krystal and Logan’s Roadhouse, recently made a significant strategic decision to sell five of its brewery brands to Kelly Companies of Southern California. This move marks a pivotal moment for SPB Hospitality as it reshapes its focus and streamlines its portfolio in the competitive restaurant industry.
Focus on Flagship Brands
By divesting Rock Bottom Restaurant & Brewery, Gordon Biersch Brewery Restaurant, ChopHouse & Brewery, Ragtime Tavern, and Seven Bridges Grille & Brewery, SPB Hospitality aims to concentrate its efforts on enhancing its remaining flagship brands. These flagship brands, including Old Chicago Pizza & Taproom, J. Alexander’s, Stoney River Steakhouse and Grill, Amada Vino + Tapas, and Village Whiskey, are now at the forefront of the company's growth strategy.
Industry Transformation
Josh Kern, CEO of SPB Hospitality, highlighted the transformative nature of this strategic move, emphasizing the company's commitment to amplifying the growth of its core brands. Kern mentioned that the integration of recently acquired concepts coupled with this divestiture represents a significant chapter for SPB Hospitality.
Acquirer's Perspective
Kelly Companies of Southern California, a multi-concept restaurant operator, views the acquisition of these brewery brands as an opportunity to strengthen its portfolio and deepen its market presence. With concepts that include Fox & Hound Bar + Grill, Craft Republic Bar & Grill, Lucky Bastard Saloon, and Whiskey River Saloon, Kelly Companies sees the addition of these new brands as a way to enhance their dining experiences for customers.
Legacy and Growth
Michael Kelly, CEO of Kelly Companies of Southern California, expressed the company's commitment to honoring the legacies of the acquired brewery and specialty concepts. He highlighted a dedication to preserving community connections while also exploring avenues for growth and innovation within these renowned establishments.
Expansion and Opportunity
The transaction involving the sale of 16 restaurants, including flagship and airport locations, signifies a substantial shift in the operational landscape for both SPB Hospitality and Kelly Companies of Southern California. This strategic move opens up new opportunities for growth and market expansion for both entities.
Ownership and Leadership
SPB Hospitality is backed by Fortress Investment Group, the parent company of Fortress Credit Corp. portfolio. This sale of brewery brands further underscores the strategic decisions made by Fortress entities within the hospitality sector, following the acquisition of Red Lobster and other key ventures.
