1851

<a href="https://www.fatbrands.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">FAT Brands</a>, the global franchising company behind <a href="https://fatburger.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">Fatburger</a>, <a href="https://hurricanewings.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">Hurricane Grill &amp; Wings </a>and <a href="https://www.pon-bon.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">Ponderosa and Bonanza Steakhouses</a>, <a href="https://www.globenewswire.com/news-release/2020/08/13/2077754/0/en/FAT-Brands-Announces-Planned-Acquisition-of-Johnny-Rockets.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">announced on Thursday</a> its intention to acquire Los Angeles-based burger chain <a href="https://www.johnnyrockets.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">Johnny Rockets</a> from private equity firm Sun Capital Partners Inc. for approximately $25 million. The deal, which is expected to finalize in September, will bring the total number of FAT Brands franchised and company-owned restaurants to 700 internationally, with annual sales of $700 million.“FAT Brands is delighted to carry the torch from the affiliate of Sun Capital Partners, Inc., a global private equity leader with deep investment and operational experience, and run hard,” FAT Brands president and CEO Andy Wiederhorn said in a statement. “Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio. This acquisition is a transformative event for FAT Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”FAT Brands has been on an expansion streak <a href="https://www.businesswire.com/news/home/20171020005597/en/FAT-Brands-Announces-Closing-Initial-Public-Offering?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">since it went public in 2017</a>, <a href="https://www.qsrmagazine.com/finance/fat-brands-scoops-elevation-burger-10-million?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">acquiring Elevation Burger for $10 million in January 2019</a> and announcing last summer that it would grow its footprint by <a href="https://www.restaurantdive.com/news/fat-brands-to-expand-via-ghost-kitchens-ceo-says/557960/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">operating ghost kitchens out of existing restaurants</a> to give franchisees access to new revenue streams.&nbsp;Wiederhorn <a href="https://www.wsj.com/articles/fatburger-owner-to-acquire-johnny-rockets-11597312801?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">told The Wall Street Journal</a> that FAT Brands approached Johnny Rockets when Sun Capital Partners began a sales process for the brand in January but that negotiations halted during the start of the pandemic before picking up again in the summer. Johnny Rockets’ U.S. sales fell 3.7% in 2019, and its unit count shrunk 3.8% to 175 locations at the end of last year. In January, the company announced a strategic approach to growth <a href="https://www.johnnyrockets.com/press_release/johnny-rockets-is-going-where-the-experiences-are/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">aimed around casinos, theme parks, cruise ships and airports</a>. Although these nontraditional restaurant venues brought in strong sales prior to the pandemic — average unit volume at casino locations was $2.4 million, and one location exceeded $5.7 million — social distancing measures and dining room closures are turning these locations into liabilities.What makes this week’s deal particularly noteworthy is that FAT Brands chose to invest in the casual dining chain despite the <a href="https://www.fsrmagazine.com/finance/full-service-restaurant-sales-drop-74-percent-five-days?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">full-service segment's significant decline</a> amid COVID-19 conditions. Wiederhorn is confident that the category's performance will turn around, telling <a href="https://www.wsj.com/articles/fatburger-owner-to-acquire-johnny-rockets-11597312801?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fat-brands-to-acquire-johnny-rockets-for-25-million-2713703" target="_blank" rel="nofollow">The Wall Street Journal</a> that FAT Brands' sales have already improved in some markets thanks to delivery and outdoor dining. In addition, Weiderhorn says acquisitions of regional restaurants can bolster the company's market reach and help the chain land good deals for supplies and marketing.

FAT Brands To Acquire Johnny Rockets for $25 million 

1851 Franchise

The merger will bring the total number of FAT Brands franchised and company-owned restaurants to 700 internationally.

fat-brands-to-acquire-johnny-rockets-for-25-million

TruBlue Home Service Ally

Why TruBlue is the Ideal Franchise for Multi-Unit Owners: Scalable Growth With a Purpose

why-trublue-is-the-ideal-franchise-for-multi-unit-owners-scalable-growth-with-a-purpose

Onigilly Japanese Kitchen

Koji Kanematsu Turned a 2,000-Year-Old Japanese Staple Into One of the Most Scalable Restaurant Franchise Models

koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models

Lindora

Celebrating the Nurse Behind the Mission: How Melinda Endricks Is Powering Lindora’s Growth and Impact Nationwide

celebrating-the-nurse-behind-the-mission-how-melinda-endricks-is-powering-lindoras-growth-and-impact-nationwide

Sola Salons

Sola Salons Targets Chicago for Strategic Franchise Growth

sola-salons-targets-chicago-for-strategic-franchise-growth

Melting Pot

Photo of Melting Pot white chocolate fondue

How Melting Pot Franchisees Drive Year-Round Success Through Strategic Promotions and Local Marketing

melting-pot-franchise-year-round-success

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight graphic with photo of Amy Lepke and family and Papa Murphy's logo

After 14 Years as a Stay-At-Home Mom, Amy Lepke Returned to Papa Murphy’s — This Time as an Owner

papa-murphys-franchise-amy-lepke

Franchisee Spotlight with Micki Waters and Papa Murphy's Logo

Work Mom: How Micki Waters Became a Mother Figure to Her Entire Papa Murphy’s Team

work-mom-how-micki-waters-became-a-mother-figure-to-her-entire-papa-murphys-team

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

FAT Brands To Acquire Johnny Rockets for $25 million

MORE STORIES LIKE THIS