Sun Capital Partners has acquired Fazoli's Restaurants for an undisclosed amount.
Effective immediately, former McDonald's executive Robert Weissmueller replaces Fazoli's founder Kuni Toyoda as chief executive.
But the Italian fast casual has struggled in recent years. Since 2004, the store count has dwindled from 375 to 319 in 32 states.
"My take is that they are positioned more as QSR vs. quick casual," said Darren Tristano, executive vice president and managing director of Technomic Information Services. "Although they seem to get a higher price point, they don't have the casual setting, visual preparation/interaction and quality of experience/food to continue to delight the customer."
Tristano said Fazoli's tends to be positioned in smaller markets that have much better options for dining. Fazoli's officials are hopeful Sun Capital can turn the chain around.
"This transaction is a great opportunity for the Fazoli's brand and its people," said Toyoda, who was with the organization for 18 years. "We are confident that this transaction will further enhance Fazoli's outstanding franchise, and I would like to personally thank our hardworking associates and management team for their support throughout the past sixteen years."
Weissmueller has served in executive management positions with McDonald's Corporation since 1971.
Matthew Garff, principal for Sun Capital, said they have not set growth goals for the chain yet. "Whether aggressive growth happens this year or next, Sun Capital will be very involved."
Garff said Sun Capital chose Fazoli's because the chain has a great niche. "Where else can somebody get great pasta very quickly?"
Sun Capital's restaurant portfolio includes Bruegger's, Garden Fresh, Souper! Salad! and Real Mex Restaurants. (Read also The Bruegger's turnaround)
