IRVINE CALIF. Yard House casual-dining chain in order to expand the high-grossing draft beer specialist into a national brand. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Terms of the deal under which TSG Consumer Partners LLC of San Francisco bought control of Irvine-based Yard House USA Inc. were not disclosed. However, the seven-state chain boasting $8.5 million in per-restaurant average volumes said no changes were expected in its management. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Chief executive and founder Steele Platt runs Yard House, and he and three other Yard House executives retain a “meaningful portion” of the company’s equity, he said. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Platt, who previously had been quoted as saying that Yard House one day would sell for the “magic number” of 10 to 12 times earnings, decreased his ownership stake from 22 percent to 10 percent in the sale to TSG. Of about 100 former outside investors who cashed out, some 20 still hold equity, as do the 80 employee-owners who retained a collective stake that decreased in proportion to TSG’s investment, Platt indicated. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Platt, who said Yard House’s sales would reach $140 million for 2007, said he had talked with several potential private-equity investors in recent years but chose TSG “not so much for the price but for their partnership.” —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
“I see them as a strategic partner,” he said. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
TSG managing director Hadley Mullin lauded Platt and his team’s success, and she said, “They have grown Yard House at a compounded rate of over 30 percent per year over the past five years, and we are highly enthusiastic about the company’s future growth prospects.” —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Yard House—noted for its upscale-style fusion cuisine, classic-rock soundtrack and self-proclaimed offering of the world’s largest selection of draft beers—is the first restaurant brand in TSG’s portfolio, whose other food-related investments include Garden of Eatin’ snacks, Mauna Loa Macadamia Nuts and Smart Balance. TSG said it manages about $1.5 billion in invested capital. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Platt, who previously had projected that Yard House could grow into a chain of up to 150 restaurants, said he deliberately chose a strategic partner with no restaurant operations experience because he wanted to preserve his company’s employee-focused culture. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
“I was a little worried about being infected by specialists who might set ways to do things,” said the CEO, whose hands-on management duties include the daily selection of the chain’s music playlist—a role that Platt plans to continue. “But TSG didn’t want to change anything. They’ve embraced what we’ve done.” —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Harald Herrmann, who is Yard House’s president and chief operating officer, and Carlito Jocson, its executive chef, are among those who retained ownership stakes in the company. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Platt had spent the past few years rolling previous investors into the consolidated Yard House USA, which strengthened cash flow and created “fewer moving parts” in order to attract private-equity interest. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
However, three of the chain’s restaurants, including the original in Long Beach, Calif., continue to have limited partners. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
A one-off concept called Tequila Jack’s Beach House Cantina, next door to the original Yard House, was sold last month to further streamline the operation. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Platt forecast that Yard House could parlay its growth momentum “into a billion-dollar company, but it’s not about speed, it’s about doing things the right way.” —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
“We’re going to develop a short-and long-term strategic growth program,” he said. “We have as much capital as we need to grow, … but our performance will lead our growth.” —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Currently operating in Arizona, Florida, Hawaii, Kansas, Colorado, Illinois and its principal market of Southern California, the 11-year-old chain is slated to add two more home-state units by year-end, in Newport Beach and Riverside, followed by the new Yard House Bar & Grill prototype next March or April in Chino Hills, Calif. A Las Vegas branch is also on tap for a 2008 opening. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit
Yard House was a 2002 winner of the Nation’s Restaurant News Hot Concepts! Award. —A private-equity firm with stakes in such brands as Famous Amos and Terra Chips has acquired a 70-percent interest in the 16-unit