The parent company of Famous Dave’s and Granite City has agreed to pay $13.5 million for two restaurant concepts run from Nashville under the same broad umbrella as O’Charley’s.
The leaders of BBQ Holdings, which is headquartered in Minnesota, expect to close on their purchase of Village Inn and Bakers Square by the end of next month. The two brands went through a Chapter 11 reorganization last year and emerged in October as VIBSQ LLC. Combined, the two concepts run 34 company-owned restaurants and 114 franchised Village Inn stores, primarily in the Upper Midwest and Great Plains states.
“Over the last several years, we’ve focused on creating a foundation for these concepts to have sustainable long-term health and value creation,” said VIBSQ CEO Craig Barber, who also oversees O’Charley’s and the Ninety Nine brand under the auspices of Restaurant Growth Services, which formerly went by American Blue Ribbon Holdings. "We are excited to have reached an agreement with BBQ Holdings with confidence in their leadership for the future of these great brands. We wish them, our operational teams and the franchisees the very best in the years ahead.”
The Village Inn and Bakers Square operations have an annualized $56 million in revenues and net EBITDA of $4.6 milion, BBQ executives said in an investor presentation. Post-deal, the BBQ organization is on track to have more than $450 million in sales and EBITDA of about $14 million.
“We believe the Village Inn and Bakers Square concepts are a great complement to our growing portfolio of restaurants,” Jeff Crivello, BBQ Holdings’ CEO, said in a statement. “We can’t wait to start working with the wonderful people who have made Village Inn and Bakers Square what they are today, and we’re excited to put these two brands on a new and reinvigorated growth path.”