Article
CEO: Why we sold 40 percent of Smashburger to Asia-based restaurant company
While the latest trend in fast casual business operations seems to be leaning toward taking a company public, Denver’s Smashburger has gone another route. It reported today that it sold 40 percent of the company to Jollibee Foods Corporation.
October 13, 2015 by Cherryh Cansler — Editor, FastCasual.com
While the latest trend in fast casual business operations seems to be leaning toward taking a company public, Denver’s Smashburger has gone another route. It reported today that it sold 40 percent of the company to Jollibee Foods Corporation. Asia’s largest restaurant company, which is a publicly traded investment firm in the Philippines, has valued Smashburger at $335 million. The burger chain has over 335 corporate and franchised restaurants operating in 35 states and seven countries. Approximately 60 percent of Smashburger is company owned and operated and will grow at a rate of 20 percent annually, said CEO Scott Crane.
FastCasual.com chatted with Crane to learn what was behind the brand's decision to sell part of the company.
Q: Why was this the best move for the company?
Crane: The recent partnership with Jollibee is a good move for the brand. We selected Jollibee for their knowledge, passion and entrepreneurial experience, which will be an invaluable asset to Smashburger. Our partnership with Jollibee will bring new opportunities and additional resources to drive Smashburger forward as a Global brand.
Q: Why the Philippines? Is the brand well-known there?
Crane: Jollibee is the largest restaurant chain in Asia, operating a global network of over 3,000 restaurants worldwide. Jollibee has been actively seeking an investment in a leading U.S. growth brand that aligned with their customer-first approach and chose Smashburger as a leader in the fast casual category. The transaction represents Jollibee Foods Corporation’s largest acquisition to date, and its largest investment outside the Philippines.
Q: How will this change your operating procedures?
Crane: This will not change our operating procedures. We will continue to operate business as normal, providing guests with top quality Smashburgers and outstanding customer service.
Q: How does it affect supply chain? How are you ensuring franchisees get the same quality products?
Crane: The new partnership will not affect supply chain. We will continue serving our guests fresh, never-frozen, 100-percent Certified Angus Beef burgers and as part of the brand DNA, we always look at leading menu innovation and providing the best guest experience possible.
Q: Why did you decide to partner with an investment company as opposed to taking the brand pubic?
Crane: We consciously chose to have a partnership with a restaurant-focused company. The knowledge and insights of the restaurant industry that Jollibee has is a tremendous advantage. Furthermore, the values that Jollibee have align perfectly with Smashburger.
About Cherryh Cansler
Related Media
FranchisingPresented ByJeff's Bagel Run
Subscribe
Get the latest news and resources from Fast Casual.
