News

McAlister's signs major development deal with Sun Holdings

October 9, 2019

McAlister's Deli has signed the largest development deal in the company's history with Sun Holdings affiliate Best Choice Restaurants, a franchise organization founded by mega multi-unit operator Guillermo Perales, according to a company press release.  

As part of the deal, Best Choice will spearhead McAlister's Deli's growth in Florida, Louisiana and Texas, in addition to developing 47 restaurants over the next seven years. The company consolidated several franchises to get to 51 locations throughout the four states: 36 in Texas, eight in Florida, four in New Mexico and three in Louisiana. The agreement marks Perales' entry into the fast casual restaurant space.

"This particular development deal marks a very significant milestone for our brand, as it is one of the largest number of franchises that we have sold in a single transaction in our company history," Joe Guith, president of McAlister's Deli, said in the release. "Perales is the owner and operator of several iconic brands, and his investment in McAlister's Deli showcases the strength of our business model and franchise opportunity."

Over the past three years, Sun Holdings — which operates Burger King, Arby's, Golden Corral, CiCi's, Krispy Kreme, T-Mobile, Taco Bueno, McAlister's Deli and GNC locations — has developed more than 200 locations and 200 remodels.

"We recently opened our 1,000th location and have been looking for a best-in-class fast casual restaurant brand to add to our rapidly growing portfolio," Perales said in the release." As a segment leader with strong unit-level economics that consistently outperform competing brands, McAlister's Deli exceeded our criteria and was the obvious choice. We are honored to be able to expand our impact in the communities we serve by offering great tasting food as well as contributions to education and meals for the underserved."

McAlister's Franchisor SPV LLC  has more than 450 restaurants in 27 states and is part of the Focus Brands, which owns Auntie Anne's, Carvel, Cinnabon, Jamba, Moe's Southwest Grill and Schlotzsky's Austin Eatery.