My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Food Fetish

The trade publication Restaurant Finance Monitor reported more than 50 major equity investment deals from January 2006 to mid-2007, involving well-known brands such as Dunkin' Donuts, Outback Steakhouse and Sbarro.
Magazine Contributor
Owner of Make a Living Writing
2 min read

This story appears in the December 2007 issue of Entrepreneur. Subscribe »

And they're not alone. Restaurant deal broker Jesse Lyon, a partner at law firm Davis Wright Tremaine, says there's a growing interest in private equity in food service and hospitality companies across the country. Restaurant chains are turning to private equity, Lyon says, to get funding faster. Private equity firms look for mixed ingredients in a restaurant investment, including a solid track record of success with multiple units, a strong trademark or brand identity, an experienced management team, good cost controls, and well-documented operations and training procedures.

In August, four-unit Rose's Restaurant and Bakery in Portland, Oregon, received a $5.2 million investment from Aequitas Capital Management. The investment firm acquired a minority stake in the chain. Seven years ago, Jeff Jetton, 41, became a co-owner of the 51-year-old restaurant and began looking for private investors to expand the chain without taking on debt. Now he plans to open several more locations.

Before making the deal with Aequitas, Jetton met with 10 private equity firms. He picked Aequitas because he prefers local investors who know the brand firsthand. Brian Oliver, senior managing director and principal of Aequitas, says Rose's fit their menu of requirements because it's a well-run, proven concept that could generate fast growth by adding restaurants in its established region and beyond.

More from Entrepreneur

Terry's digital marketing expertise can help you with campaign planning, execution and optimization and best practices for content marketing.
In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur