The U.K.-born noodle concept Wagamama has taken full control of its U.S. operations.
Founded in London in 1992, the Japanese-inspired Wagamama is part of The Restaurant Group (TRG), which was acquired by private-equity firm Apollo Global Management last year. But the eight locations of the casual dining chain in the U.S. were operated under a joint agreement with Conversion Venture Capital (CVC2). Punch Bowl Social veterans Robert Cornog and Richard Flaherty served as operating partners for the development of Wagamama's U.S. business.
TRG held a 20% stake in the joint venture. But in a deal announced Thursday, CVC2 has sold its 80% stake in U.S. operations, giving TRG full control as the chain hopes to grow here. Wagamama currently operates in Boston, New York, Tampa, Dallas and, most recently, a restaurant opened in the Washington, D.C. area earlier this year.
Terms were not disclosed for the deal.
Thomas Heier, CEO of Wagamama, said in a statement, “The U.S. is an exciting growth market for Wagamama and we are looking forward to expanding our popular concept into new locations across the country. We want to thank the CVC2 group for setting the foundations for growth and are confident that our innovative menu and unique culture will resonate with customers as we expand the offer in the United States.”
TRG operates more than 400 restaurants and pubs under the Wagamama, Bar Burrito and Brunning & Price Ltd. Brands.
Hugely popular in the U.K., the pan-Asian casual-dining Wagamama struggled to gain a presence in the U.S., until CVC2 entered the picture in 2020.
After navigating the brand through the pandemic, Cornog and Flaherty tweaked Wagamama’s U.S. locations somewhat to accommodate the post-Covid consumer. Unlike their English counterparts, U.S. units have bars with high-top seating and happy hours, for example. Restaurant footprints were trimmed down, and the menu was streamlined to boost speed at lunch.
UPDATE: This article has been updated to clarify the roles of Robert Cornog and Richard Flaherty.
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