The deal with Patxi’s owner KarpReilly LLC is expected to close in the next 60 to 90 days, Mike Nakhleh, president of Elite Restaurant Group, told Restaurant Business. Nakhleh declined to disclose purchase details.
In addition to Slater’s 50/50, Elite recently acquired the 23-unit Daphne’s California Greek concept. Nakhleh’s group has since shortened the brand’s name to simply Daphne’s, revamped the menu and is updating existing stores.
“The plan is to continue to acquire brands and grow the portfolio,” Nakhleh said. He did not provide details about future acquisitions but added that he plans to meet with investors in coming months to raise capital to build new units and purchase new restaurant concepts.
“Patxi’s is an amazing brand,” Nakhleh said. “I truly believe in the brand and want to take it to 100 units. We are very excited to add pizza to our portfolio.”
Elite Restaurant Group plans to open Patxi’s up to franchising, with the goal of rolling out 10 new stores a year. Older locations will be remodeled, he said.
This week, Patxi’s parent KarpReilly closed all 19 units of its Taylor Gourmet hoagie chain.
Slater’s 50/50 has expanded to four states from its California roots, following its acquisition by Elite Restaurant Group in 2016. It is slated to have a footprint in a half dozen states by next year, Nakhleh said. The full-service chain now has a food truck for corporate events, as well as a retail line of burger patties.