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The Cheesecake factory acquired Fox Restaurant Concepts for $308 million cash

Posted at 10:57 AM, Aug 01, 2019
and last updated 2019-08-01 13:57:26-04

PHOENIX- The Cheesecake Factory announced that it has entered into definitive agreements to acquire Fox Restaurant Concepts (FRC).

In 2016, The Cheesecake Factory invested in North Italia and Flower Child, two FRC restaurants. The new agreement stated that The Cheesecake Factory would also get the remaining interest in North Italia.

“We realized the true potential of this relationship as we worked through the integration process for our planned acquisition of North Italia,” David Overton, chairman and chief executive officer of The Cheesecake Factory Inc. said in a press release. “It became evident that the combination of two of the most experiential and entrepreneurial restaurant companies could drive greater value as one organization.”

According to the press release, Overton went on to explain what the new relationship is going to look like for the two companies. Overton said they decided to bring FRC and The Cheesecake Factory together because they believe they will be able to provide their guests with exceptional experiences, offer room for growth in the company and expand on long-term value for their shareholders.

“We look forward to continuing to work with Sam to expand the business.” Overton said.

The transaction will close for $308 million in cash with an additional $45 million over the next four years. Prior to this deal, The Cheesecake Factory has invested a total of $88 million in the North Italia and Flower Child concepts over the last three years, expecting this purchase.

Sam Fox is at the top of the game in the industry. In 1998, Fox opened up his own restaurant when he was only 21-years-old and later launched his first Fox Restaurant Group concept, Wildflower. He then he partnered with Dr. Andrew Weil to open True Foood Kitchen, a health-focused restaurant chain, in 2008.

Since the start of his career, Fox has been not stopped climbing. He has been named a 10-time James Beard Aware semifinalist for Restaurateur of the Year, New York Times best-selling cookbook author and recently named one of the 50 most influential people in the industry by Nation’s Restaurant News for the fifth consecutive year.

To top it all off, he has built a wildly successful brand that has spread across the nation. FRC currently operates 45 restaurants across seven states and Washington D.C.

“This partnership will be the first of its kind for the restaurant industry,” Sam Fox, founder and chief executive officer of FRC, said in the release. “David Overton and I quickly realized the magic occurring between our organizations while we worked through North Italia’s integration. With our aligned cultures and philosophies, The Cheesecake Factory is the right partner to embrace our creative spirit, enabling us to innovate concepts, while providing the infrastructure and capital to scale.

With over 5,000 employees in over 60 different locations, a lot of people are wondering what the transition is going to look like for the FRC family as a whole and per restaurant/ concept.

Fox has assured his employees that he is not going anywhere in the transition, FRC still exists and will continue to operate independently and nothing will change unless they want it to.The Cheesecake Factory is taking over FRC because of who they are and what they do.

The Fox Restaurant Concepts include:

  • North Italia
  • Flower Child
  • Culinary Dropout
  • Blanco Tacos and Tequila
  • Zinburger
  • Doughbird
  • The Henry
  • Olive & Ivy
  • The Green House
  • The Arrogant Butcher
  • Wildflower
  • FRC Group Dining