Popeyes Louisiana Kitchen franchisor and operator AFC Enterprises Inc. has agreed to acquire 28 restaurants in Minnesota and Northern California for $13.8 million, the company said Wednesday.
The units are currently Kentucky Fried Chicken concepts, according to Alicia Thompson, vice president of communications and public relations for Popeyes. The company is not yet releasing the name of the franchise organization from which AFC Enterprises has agreed to acquire the KFC restaurants, she said.
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The 28 KFC units will be converted into Popeyes restaurants and leased to Popeyes franchisees, according to a statement from the company. Altogether, the conversions will cost about $11.5 million to complete.
Cheryl Bachelder, chief executive officer of Atlanta-based AFC Enterprises, said in a statement that the purchase will help Popeyes expand into markets where the brand currently has "almost no presence."
“We are delighted at this opportunity to accelerate the growth of the Popeyes system and to bring Popeyes’ fresh new image and flavorful food to the people of Minneapolis/St. Paul and Northern California,” she said.
The purchase agreement, which is expected to close in November, is subject to bankruptcy court approval.
AFC Enterprises currently operates 40 Popeyes locations and franchises 1,597 units domestically and 412 internationally. Popeyes is the world’s second-largest quick-service chicken chain.
Contact Erin Dostal at [email protected].
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