Franchising

Muscle Maker Grill acquires poke concept

May 18, 2021

New Jersey-based Muscle Maker Inc. has acquired Pokemoto, a 13-unit Hawaiian poke concept with locations in Connecticut, Rhode Island, Massachusetts and Georgia.

"The acquisition allows us to expand on what we do best which is offering a variety of fresh-prepared 'healthier for you' meals," Muscle Maker CEO Mike Roper said in a company release. "The poke segment attracts sushi fanatics and those who just want to eat something with a lot of flavor. Our management team has been busy researching acquisition opportunities that fit into our non-traditional growth strategy and the work is starting to bear fruit."

Pokemoto, which specializes in chef-driven contemporary flavors with fresh and healthy ingredients such as Atlantic salmon, sushi-grade tuna, fresh mango, roasted cashews and black caviar tobiko, has university locations near Yale University, Fairfield University, University of Connecticut Stamford, University of New Haven, Southern Connecticut State College, Quinnipiac University and Franklin Pierce University.

"Buying yet another growth-oriented multi-unit concept accelerates our top-line revenue growth and adds another strong brand to the delivery-only side of the business," Roper said.

Pokemoto generated $3,643,342 in total revenue in 2019 with a positive EBITDA margin of 26.6% of $969,770. In 2020, during the pandemic, Pokemoto increased its total revenue slightly to $3,653,478 and continued positive EBITDA of $506,802,

In 2020, Muscle Maker's total revenue was $4,473,447, which means the addition of Pokemoto revenue will increase Muscle Maker Inc.'s total revenue by 81% to $8,126,925.

The chain, which has six locations sold, is set for national growth, Roper said.

"I believe prospective franchisees will be excited when they look at the store-level economics, low build-out costs along with the ease of operations, and see how wide open the country is to place Pokemoto restaurants in prime locations," he said. We believe we can grow this brand into something that people can enjoy in every state in the country."

Muscle Maker Inc. owns Muscle Maker Grill and recently acquired SuperFit Foods LLC, a fresh-prepared meal prep service, in Jacksonville, Florida.