Financing

Why merger mania has hit the restaurant industry

In this episode of "A Deeper Dive," a trio of experts from investment banking firm PJ Solomon discuss why restaurants are consolidating so much.
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a deeper dive

One of the biggest current trends in the restaurant industry is the merger mania currently engulfing numerous chains both large and small.

Don’t expect that to end anytime soon, at least according to a trio of merger and acquisition experts from investment banking firm PJ Solomon.

In this week’s episode of Restaurant Business' podcast, "A Deeper Dive," PJ’s Scott Moses, Greg Grambling and Edna Morris discuss the current M&A environment and how it’s similar to previous consolidation trends in the grocery and hotel businesses.

More than 70 chains have been sold over the past two years, and many of them have been sold to existing chains. Inspire Brands, backed by private-equity group Roark Capital, along with 3G Capital-backed Restaurant Brands International and investment firm JAB Holding, have all made numerous big deals. But several smaller companies have also merged as the industry seeks safety in numbers.

Moses is managing director of PJ Solomon and head of its food retail and investment banking practice. He's worked on Kroger's acquisition of Roundy’s and the merger between Sprouts Farmers Market and Henry’s Farmers Market, among others.

Grambling is a director of the firm and worked on Apollo Global Management's acquisition of Qdoba as well as the Kroger-Roundy’s deal.

Morris is a senior adviser for the firm and has extensive experience in the industry. She has worked with Red Lobster, Quincy’s Family Steakhouse and Blue Coral Seafood & Spirits.

Please have a listen.

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