High Bluff Capital Partners, the parent company of Quiznos and Taco Del Mar, has agreed to purchase quick service chicken chain Church’s Chicken from private equity firm, FLL Partners.
“Our investment strategy continues to center on identifying brands with long-term connections with consumers that can be energized and propelled to greater success through targeted industry expertise, operational efficiencies, innovation and creative brand management,” said Anand Gowda, who, prior to founding High Bluff Capital Partners served as President and Managing Partner of Metropoulos & Co.
“Church’s fits squarely within this wheelhouse. We look forward to leveraging our robust platform and working closely with the management team and franchisees to accelerate Church’s positive trajectory.”
The purchase is supported by various alternative investment funds managed by FS Investments.
“In addition to becoming a premier global franchisor, Church’s has long dominated the value-oriented market in the chicken category, with a highly recognizable brand, consistent quality and delicious offerings,” said Rushabh Vora, Managing Director at FS Investments, which led a structured capital investment in support of the acquisition out of its FS Tactical Opportunities Fund along with other affiliated investment funds.
“With the global chicken QSR market forecasted to grow meaningfully over the next few years, and major geographies such as China and Australia still yet to be tapped by Church’s, we see exciting growth potential for this beloved brand.”
Subject to customary closing conditions, the transaction is expected to be completed during the third quarter of 2021. Terms of the deal were not disclosed.
Late entry to the chicken sandwich wars
Church’s Chicken entered the chicken sandwich wars in November 2020 with the launch of the Church’s Chicken Sandwich.
The Church’s Chicken Sandwich features an all-white meat chicken breast filet that is hand-breaded with the brand’s proprietary home-style seasoning with a hint of buttermilk and topped with crunchy pickles and creamy mayo on a toasted brioche bun.
The brand also offers a spicy version that swaps the creamy mayo for spicy mayo with a hint of Texas heat and adds Church’s signature jalapeño peppers on the side.
Gowda hopes to bring a faster mindset to the quick service chicken chain.
“They took a long time to make decisions like implementing price changes. They were late to the chicken sandwich wars. It shouldn’t take two years to develop a loyalty program,” he said in a statement on the High Bluff website.
“You have to be quick in this industry – especially now. We have a small group of owners and that gives us the ability to make decisions quickly. Our ownership is narrow and I think that will be a strategic advantage with the brand.”
Church’s Chicken, founded in 1952, has more than 1,500 locations in 26 countries and international territory. Its menu featured hand-battered fried chicken and tender strips, along with honey-butter biscuits made in house. The brand generated system-wide sales of nearly $1.2 billion in 2020 by leveraging its strength in family meals, digital offerings, delivery and to go orders.
“The past few years have been all about growth for the brand and its franchisees,” shared Joe Christina, Chief Executive Officer for Church’s. “Our focus will be to deliver against our strategic plan with new locations in the U.S. and internationally and continued profitable sales growth.”
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