Authentic Restaurant Brands (ARB) on Monday said it has acquired Tavern in the Square, making the New England polished casual-dining brand its fifth acquisition in five years.
The New York-based company, which owns several regional chains including Pollo Tropical and Primanti Bros, also named Alex Macedo CEO and Jon Howie CFO. Macedo, ARB’s cofounder, is a former president of Tim Hortons and Burger King.
ARB acquired Tavern through the recapitalization of the chain’s parent company, Broadway Hospitality Group. The chain operates 17 locations and the company has four other concepts, The Broadway, The Derby Restaurant and Bar, The Playwright and Mercantile.
The chains Authentic has acquired now generate $1 billion in annual revenues and more than $150 million in EBITDA, or earnings before interest, taxes, depreciation and amortization.
“Tavern in the Square is a New England institution renowned for its exceptional food, guest loyalty and deep loyal roots,” Macedo said in a statement. “It’s exactly the type of brand that aligns and will thrive within our portfolio of restaurant brands.”
ARB, cofounded by the private-equity firm Garnett Station Partners, has acquired regional “fortress brands” that have strong reputations and penetration in their local markets. It has acquired Primanti Bros., which has locations throughout the Mid-Atlantic, Pollo Tropical, which is based in Florida, P.J. Whelihan’s, based in the Greater Delaware Valley, and Mambo Seafood out of Houston.
The company’s strategy is to give these brands access to more resources and operational expertise than they’d get otherwise. “We gain the best of all worlds, access to the capital, expertise and best practices to make us even better, without sacrificing guest experiences,” Stephen DeSousa, CEO of Broadway Hospitality Group, said in a statement.
Broadway Hospitality was founded in 2004. Each of the restaurants in its portfolio has a distinct identity, and menu, tailored to their neighborhoods.
“This is what ARB does best,” Macedo said. “We identify standout, regional brands, equip them with access to industry-leading technology, data analytics and operational expertise and unlock growth levers, all while preserving the integrity and defining characteristics of the brand.”
Macedo, ARB’s executive chairman, is replacing Felipe Athayde as CEO. He has more than two decades of marketing and operations experience and is the leading operating partner for Garnett Station, a $3.5 billion investment firm.
Howie, meanwhile, comes to ARB from Chuy’s Holdings, where he was the CFO from 2011 through its sale to Darden Restaurants last year. Howie held roles with Lone Star Steakhouse and Del Frisco’s.
Matt Perelman, managing partner and cofounder of Garnett Station, said in a statement that Athayde “played a pivotal role establishing and growing ARB.”
“As we look ahead, ARB is primed to build on this momentum, benefiting from Alex’s global operational expertise and Jon’s public company experience as we continue to scale the platform and drive industry-leading performance across our brands.”
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