Restaurants & Hospitality Acquisitions in California

The Bay Club Company has acquired Griffin Club Los Angeles, adding the historic racquet, athletic, aquatic, and social club to its Los Angeles Campus. The purchase expands Bay Club's West Coast portfolio and strengthens its member-focused fitness, wellness, and hospitality offerings in the Los Angeles market.

India-based travel distribution platform TBO.com (Travel Boutique Online) has acquired U.S. luxury travel wholesaler Classic Vacations from Najafi Companies for $125 million. Classic Vacations reported approximately $111 million of revenue and $11 million of EBITDA in 2024; the deal brings Classic Vacations' luxury travel advisor network and supplier relationships onto TBO's technology-driven distribution platform as part of TBO's North American expansion.

TJC, L.P. (via an affiliate of The Resolute Fund VI, L.P.) has acquired Wedgewood Hospitality Group, Inc. (Wedgewood Weddings) from Prospect Partners. Wedgewood, a Temecula, California–based operator of over 75 wedding venues across eight states with ~2,000 employees, will remain led by CEO Bill Zaruka and will use the new investor resources to support organic growth, new venue openings and operational improvements.

Roark Capital Group has acquired a majority stake in Los Angeles-based fast-casual chain Dave's Hot Chicken in a deal reported at roughly $1 billion. The founders and senior leadership will remain in place as Roark positions the brand for accelerated domestic and international franchised growth leveraging its restaurant portfolio and supply-chain capabilities.

Wonder Franchises, a subsidiary of Tucker's Farm Corporation, has acquired Pizza Factory, a West Coast pizza franchisor with 110 locations and more than $90 million in system sales. The deal expands Wonder's franchisor portfolio and supports planned geographic growth while Pizza Factory's CEO Mary Jane (MJ) Riva will remain in her role to help drive franchise growth.

Barry's, the global boutique fitness franchisor, has received a strategic investment from Princeton Equity Group to accelerate studio growth and support consolidation in the UK and Canadian markets. The funding will back expansion of Barry's studio pipeline, investment in product and operations, and continued development of its franchise and digital offerings.

Craveworthy Brands has acquired Fresh Brothers Pizza, a Los Angeles–based pizza chain with more than 20 locations across Southern California. The acquisition expands Craveworthy's restaurant portfolio and provides a West Coast brick-and-mortar pizza concept the company plans to grow through franchising.

Linked Eats, the restaurant delivery revenue-management software arm of Virtual Dining Concepts, has acquired Sauce Technologies, an AI-powered dynamic pricing and revenue-management platform for digital ordering. The deal brings Sauce's machine-learning pricing, marketing automation and demand-forecasting capabilities into Linked Eats' platform to expand product features and accelerate digital revenue tools for thousands of restaurant operators.

Apollo-managed funds have entered into a definitive agreement to acquire The Travel Corporation (TTC), a privately held portfolio of 18 travel brands including Trafalgar, Uniworld Boutique River Cruises, Contiki and Insight Vacations. The deal — excluding certain assets such as The Red Carnation Hotel Collection — is part of TTC's family succession plan and is expected to close in Q4 2024, subject to customary closing conditions and regulatory approvals.

SoundHound AI has acquired key assets from Allset, an online food-ordering platform, and will integrate Allset's team and restaurant relationships into its voice commerce ecosystem. The deal brings nearly 7,000 restaurant partners and marketplace expertise to SoundHound as it expands voice-enabled ordering across cars, TVs, smart devices, and other channels.

L Catterton has agreed to acquire a significant (substantial) stake in luxury river cruise operator AmaWaterways from a consortium of investors led by Certares. Founders Rudi Schreiner, Kristin Karst and the Murphy family will remain meaningful owners as L Catterton partners with management to support the company's continued growth, fleet and market expansion.

NewSpring Franchise has made a strategic investment in Shake Smart Holdings, a healthy fast-casual concept, with mezzanine and equity co-investment from Tecum Capital and NorthCoast Mezzanine. The capital will be used to accelerate Shake Smart's unit expansion beyond college campuses into airports, hospitals, military installations and other non-traditional venues; Satya Ponnuru and Patrick Sugrue will join the Shake Smart board.

K1 Speed, the Irvine-based indoor electric karting operator, has acquired Speed Circuit Family Fun Center in Chula Vista, California and reopened it as K1 Speed Chula Vista. The acquisition expands K1 Speed's San Diego County footprint to three locations and included renovations such as replacing gas karts with all-electric karts and facility upgrades for events and arcade offerings.

Broadside Enterprises, Inc. (OTC: BRSE) has acquired Potential Engine, LLC — the digital food service platform and associated digital infrastructure, IP and interlocking virtual restaurant brands from Byte to Bite Industries, Inc.'s senior secured noteholders. The platform powers 50+ digital brands across 2,000+ storefronts from 10+ kitchens in the Greater Los Angeles area; Broadside said it will expand the platform globally and further develop it into an AI-based digital hospitality ecosystem.

Brentwood Associates and Sixth Street completed a significant growth investment in Far West Services, a Costa Mesa–headquartered franchisee operating over 100 Wingstop restaurants across the western United States. The investment was made alongside Far West’s existing management team, who will remain significant shareholders as the company pursues continued expansion through new openings and strategic acquisitions.

Paradies Lagardère (part of Lagardère Travel Retail) has acquired airport food & beverage operator Tastes on the Fly from H.I.G. Capital. The acquisition expands Paradies Lagardère’s North American dining footprint by adding Tastes on the Fly’s 25 concepts across five major airports; terms were not disclosed and the existing management team will remain in place.

Bowlero Corp. agreed to acquire substantially all assets of Lucky Strike Entertainment, LLC, adding 14 upscale Lucky Strike bowling centers across nine U.S. states in an all-cash transaction valued at approximately $90 million. The acquisition expands Bowlero’s national footprint and launches the company into several major U.S. cities, increasing its portfolio of bowling and entertainment locations.

Laguna Beach-based Soul Community Planet (SCP) has acquired the Albion River Inn, a 22-room oceanfront boutique hotel in Albion, Mendocino County, California. The property will be renamed SCP Mendocino Coast Lodge, undergo renovations, and be integrated into SCP's wellness- and sustainability-focused coastal portfolio.

MTY Franchising USA, a wholly owned subsidiary of MTY Food Group Inc., completed the acquisition of Wetzel's Pretzels from CenterOak Partners LLC for $207 million in cash. Headquartered in Pasadena, California, Wetzel's is a leading quick-service pretzel franchisor; CenterOak had acquired the company in 2016 and sold it as part of a successful exit.

Presto Automation Inc. completed its previously announced business combination with special purpose acquisition company Ventoux CCM Acquisition Corp., and the combined company began trading on Nasdaq under the ticker PRST on September 22, 2022. The transaction included approximately $120 million of cash proceeds, including a strategic PIPE investment from Cleveland Avenue, LLC, to fund expansion and product development of Presto's voice, vision and touch labor automation platform for the hospitality industry.

Butterfly Equity agreed to acquire QDOBA from funds managed by Apollo and merge the brand into Modern Restaurant Concepts (which includes Modern Market Eatery and Lemonade), creating a leading fast-casual restaurant platform of roughly 800 units. King Street Capital Management is investing alongside Butterfly; the transaction aims to accelerate franchising, system growth and catering expansion across the combined platform. Terms were not disclosed.

K1 Speed has acquired Pole Position Raceway, taking ownership of the two company-owned indoor karting centers in Corona, California and Las Vegas, Nevada. The acquisition expands K1 Speed's footprint in Southern California and the Las Vegas market and will convert the two locations to the K1 Speed brand while retaining existing employees.

The Posh Privy, owned by Marisa Manna Ferrell and Brian Ferrell, has purchased VIP luxury portable restroom operator Fancy Flush. The acquisition expands The Posh Privy's fleet to 22 trailers (a reported 2,000% growth) and broadens its event service offerings for weddings and other private and corporate events.

Funds managed by Trinity Real Estate Investments (Trinity) and Oaktree Capital Management acquired the 530-key Hyatt Regency Indian Wells Resort & Spa in Indian Wells, California. The joint venture plans a multi-million-dollar capital improvement program to reposition the resort while Hyatt continues to manage the property under a long-term management agreement.

Jack in the Box Inc. completed its acquisition of Del Taco Restaurants, Inc. for approximately $585 million, paying Del Taco stockholders $12.51 per share in cash. Del Taco’s common stock will be delisted from NASDAQ as the combined company pursues greater scale, unit growth and investments in digital and technology capabilities to strengthen both QSR brands.

Sentinel Capital Partners has acquired American West Restaurant Group (AWRG) from Sterling Investment Partners; terms were not disclosed. AWRG is the largest Pizza Hut franchisee in California and Utah, operating nearly 300 quick-service restaurants and roughly 5,000 employees across greater Los Angeles and metropolitan Salt Lake City.

Levine Leichtman Capital Partners has sold its investment in Mountain Mike's Pizza to an entity controlled by the company's co-CEOs, Chris Britt and Ed St. Geme, in a management-led buyout. Mountain Mike's Pizza is a franchisor with over 245 stores across multiple western U.S. states and is headquartered in Newport Beach, California; LLCP had invested in the company in 2017 and helped drive store growth and franchising initiatives.

Sonder Holdings Inc. completed its previously announced business combination with SPAC Gores Metropoulos II and will commence trading on the Nasdaq under ticker SOND. The deal included approximately $310 million of PIPE commitments from investors (including affiliates of GMII, Fidelity, BlackRock, Atreides and Senator) and provides access to $165 million of delayed draw notes to strengthen Sonder's balance sheet and fund growth.

Soul Community Planet (SCP) has acquired the 41-room Laguna Riviera Beach Resort in Laguna Beach, California — its first expansion into California and sixth hotel overall. SCP plans a multi-million-dollar renovation and repositioning, rebranding the property as SCP Laguna Beach and incorporating the company's vegetarian, net-zero-waste and wellness-focused programs.

TriArtisan Capital Advisors invested $10 million in C3 (Creating Culinary Communities), the food-technology platform founded by Sam Nazarian that operates virtual/ghost kitchens and physical food halls. The investment will enable C3 to expand its digital kitchen footprint and integrate its 40+ virtual and physical brands with select TriArtisan restaurant banners to increase kitchen utilization and generate incremental revenue.

Marriott Vacations Worldwide (MVW) entered into a definitive agreement to acquire Welk Resorts, a family-owned timeshare and resort operator, for approximately $430 million, including stock. The deal expands MVW’s Hyatt Residence Club footprint by adding eight upper-upscale resorts (nearly 1,400 keys) and ~55,000 owners, and is expected to close in early Q2 2021 subject to customary approvals.

Century Golf Partners and an HKI (Hankuk Industry) partnership acquired the member-owned Las Posas Country Club in Camarillo, California, with the sale finalized on December 31, 2020 after an overwhelming member vote. Century Golf will operate the club under its Arnold Palmer Golf Management brand and the buyers plan capital improvements while providing members reciprocal access to Century Golf's Palmer Advantage network.

Yum! Brands agreed to acquire all outstanding common shares of The Habit Restaurants, Inc. (The Habit Burger Grill) for $14.00 per share in cash, a transaction valued at approximately $375 million. The acquisition adds a fast-casual, chargrill-focused restaurant concept headquartered in Irvine, California to Yum!'s portfolio and is expected to close by the end of Q2 2020, with The Habit remaining based in Irvine and reporting into Yum!'s management.

Nolan Capital, the family office of Peter Nolan, has become the majority owner of Ortega National Parks (ONP). The Ortega family (Armand Ortega, Shane Ortega and Tom Williamson) will remain minority owners and board members, with Shane Ortega serving as Co-Chairman, as Nolan Capital provides capital and long-term support to help ONP expand its retail, lodging and hospitality operations in national, state and county parks across the United States.

Wellspring Capital Management has closed the acquisition of Lucky Strike Entertainment, LLC, an operator of upscale entertainment venues with 21 locations across the United States. Wellspring — a New York-based private equity firm — said it will partner with Lucky Strike founders to accelerate growth and expand the brand’s footprint; financial terms were not disclosed.

Global investment firm KKR will acquire The Bay Club Company, a San Francisco-based active lifestyle and hospitality operator, from York Capital Management and minority investors. The Bay Club operates seven California campuses with more than 50,000 members and employs over 4,000 people; deal terms were not disclosed.

Los Angeles-based Elite Restaurant Group, led by Mike Nakhleh, is acquiring the Daphne's California Greek brand and has taken over operations of 23 California locations. Elite plans to remodel the restaurants, simplify the name to Daphne's, launch a new menu and retail products, and pursue growth via franchising and adding roughly 10 corporate locations per year.

Elite Restaurant Group has agreed to acquire Slater's 50/50, including six restaurants and the brand's intellectual property, from founder Scott Slater. The deal, expected to close in February, will see Scott Slater step down as president and remain on as an advisor while the buyer plans renovations, company-owned expansion and a franchising program to grow the brand beyond Southern California.

New York-based private equity firm Goode Partners has made a strategic growth investment in STONEFIRE Grill, a Southern California fast-casual restaurant chain headquartered in Westlake Village, California. The capital will be used to accelerate unit growth within its core Southern California market and expand into new geographic territories.

PWP Growth Equity, a private equity fund managed by Perella Weinberg Partners, made a growth equity investment in Black Bear Diner to support continued expansion. The investment will fund investments in people, systems and new restaurant openings while the existing executive team, including co-founder Bruce Dean, remains in place; financial terms were not disclosed.

Nimes Capital has agreed to acquire Togo's Sandwiches, with growth equity firm Mainsail Partners selling its ownership stake. CEO Tony Gioia will retain an ownership stake and remain CEO as Nimes provides strategic guidance to support the brand's revitalization and expansion; Togo's operates roughly 251 restaurants across six western U.S. states.

K1 Speed Inc., the largest national operator of indoor kart racing facilities, announced it will acquire Race Place Motorsports, Inc. (RPM Indoor Kart Racing) in Sacramento, California. The transaction adds K1 Speed’s 13th nationwide location (and its 3rd in Northern California); the Sacramento facility will convert from gas karts to electric karts and is scheduled to close on December 1, 2012.