Franchising

Fat Brands acquires sports lodge chain Twin Peaks

Photo: iStock

September 1, 2021

Fat Brands, a global restaurant franchising company, has acquired Twin Peaks, a chain of sports lodges known for scratch-made food and draft beers, from Garnett Station Partners for $300 million, according to a press release.

Fat Brands owns several fast casual and quick-service chains, including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Hurricane Grill & Wings, Pretzelmaker, and Ponderosa and Bonanza Steakhouses. The transaction is scheduled to close by the end of September.

The purchase of Twin Peaks expands Fat Brands' portfolio into the polished casual dining segment. With 82 stores open, six additional stores due to open by the end of the year, and another 18 under development over the next 18 months, the purchase of Twin Peaks is expected to bring Fat Brands' systemwide sales from about $1.4 billion to over $1.8 billion across more than 2,100 franchised and corporate-owned stores, according to the release.

"Twin Peaks is a noteworthy addition for FAT Brands. Following the recent acquisitions of Johnny Rockets and Global Franchise Group, this acquisition comes at a time when we're seeking to expand our market segments into sports and polished casual dining," Andy Wiederhorn, Fat Brands CEO, said in the release. "As a strong, growth-oriented concept, Twin Peaks complements our existing brands. The average unit volumes between $4.5 million and $6.5 million for new units is at the high end of industry growth standards. The exceptional unit economics and proven track record of the Twin Peaks brand has led to extraordinary demand for new store openings from new and existing franchisees. The current pipeline of new franchise locations as well as the large potential for global expansion of this successful brand is what brought us to the table and makes this a truly unique acquisition for FAT Brands."

Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks has expanded to 82 locations in 25 states. Along with draft beer kept at 29 degrees, Twin Peaks serves smashed and seared to order burgers, in-house smoked ribs and hand-breaded wings.

"The sale of Twin Peaks to FAT Brands marks a major milestone for us after a year of consistent sales growth as we work towards our vision of becoming a global-facing brand," Joe Hummel, CEO of Twin Peaks, said in the release. "Fat Brands has a proven track record of scaling and introducing concepts to international markets. We're excited to be part of Andy's vision as he continues to build Fat Brands."