SCOTTSDALE Ariz. The nine-unit El Paso Grill & Bar-B-Que chain has entered into a joint venture with Glimcher Ventures Southwest to expand the restaurant barbecue concept in a deal valued at as much as $50 million.
El Paso Bar-B-Que is held by M&B Restaurants LC, created by William Prather, former chief executive of Hardee’s Food Systems and former executive vice president of the Burger King Corp. El Paso Bar-B-Que was first developed in 1991 by Furr’s/Bishop’s Cafeterias, where Prather served as vice chairman. Prather and his wife, Marna, bought the El Paso brand in 1994.
Glimcher Ventures is a national commercial development company based in Scottsdale. In the joint venture, GVSW will fund the real estate development portion of the company’s expansion and El Paso Grill will continue to handle operations.
The companies said expansion will begin this year with the openings of restaurants in California and New Mexico as well as three new locations in Arizona. The five new locations include: Roseville, Calif., opening in the third quarter of 2008; Farmington, N.M., opening in second quarter 2008; and Chandler, Flagstaff and Yuma, Ariz., opening third and fourth quarter 2008.
David Glimcher, president of Glimcher Ventures Southwest, said: “This relationship provides El Paso with the momentum necessary to enable it to focus on aggressive growth without the worries of the development process, seeking optimum site locations and funding this expansion program.”
Prather of El Paso Grill said, “We believe this new relationship with GVSW is a successful formula for the strategic growth of our company and our brand.
The restaurant company launched full-service catering in 1994 and it has grown into a $3 million a year division.
El Paso Grill has locations in the Arizona communities of Ahwatukee, Goodyear, Mesa, Scottsdale, Sierra Vista, Surprise and two units in Tucson.
Glimcher Ventures Southwest has shopping center projects in Arizona, California and Colorado and has plans for Utah and Nevada.