A private-equity firm launched with the help of Edible Arrangements founder Tariq Farid has acquired the fast-casual chain Roti Modern Mediterranean out of bankruptcy.
BroadPeak Capital, an investment firm launched by Farid and Blackrock veteran Aseem Khatri, acquired Roti out of bankruptcy in a trio of separate deals totaling nearly $4.7 million, according to court documents.
BroadPeak acquired the Roti brand and 17 locations, including 10 in Illinois, four in the Washington, D.C., area and three in Minneapolis.
Roti filed for bankruptcy in August and put itself on the market in October. BroadPeak emerged as a bidder and initially won an auction for 10 Illinois locations and the brand’s intellectual property. It since bought the remaining seven locations in separate deals, according to court documents.
The chain is the inaugural deal for BroadPeak. The firm said it plans to make operational enhancements, “strategic market expansion” and menu innovation.
Farid in a statement called it a “full-circle moment.”
“Revitalizing Roti is a full-circle moment for me,” he said. “Like Edible Arrangements, Roti represents nourishment, tradition and connection. With the support of our firm’s deep franchise expertise and alignment with Roti’s brand values, we’re confident in our ability to transform Roti into a Mediterranean fast-casual dining leader.”
Roti will join the Edible Brands platform, which includes Edible Arrangements, edible.com and freshfruit.com along with supply chain and point-of-sale software. Somia Farid Silber is CEO of Edible Brands.
BroadPeak said that it is targeting other concepts to roll into Edible Brands. Khatri will oversee the firm’s investment efforts while Farid will focus on operations. Khatri said in a statement that the firm brings “the expertise and flexibility necessary to invest in vision and build enduring businesses.”
“We are actively seeking opportunities to further scale the Edible Brands platform,” Khatri said.
A lot of investors have been targeting low-cost brands of late, hoping to buy concepts at low prices and find ways to expand them. Several restaurant chains, including numerous fast-casual concepts, filed for bankruptcy last year after struggling with either debt, excessive lease costs or weak sales coming out of the pandemic.
Many investors have seen an opportunity in these challenges to buy concepts, such as the fast-casual Mexican chain Tijuana Flats, Anthony’s Coal-Fired Pizza and BurgerFi.
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