Perth-based franchise chain Chooks Fresh & Tasty has been acquired by Quick Service Restaurant Holdings, which operates the Red Rooster and Oporto chains around Australia.
Chooks Fresh & Tasty was founded in 1991 by Steve Hansen and has 40 stores, with the majority based in Western Australia.
The stores will be rebranded under QSRH’s Chicken Treat. The acquisition will give QSRH 600 stores around Australia, three quarters of which are franchised.
QSRH was formed in April 2007 after management buyout of the owners of the Chicken Treat and Red Rooster chains. The buyout was backed by private equity firm Quadrant Private Equity Group, which tipped just over $90 million into the deal.
In July 2007, QSRH bought the 106-store Oporto chain in a $60 million deal.
The price of the Chooks Fresh & Tasty deal has not been disclosed.
However, Hansen told Franchising that his franchisees would benefit from being part of a larger group.
“They are very well looked after as far as the terms of the sale,” Hansen said.
“Particularly in the purchasing power that they can gain by being part of QSRH with 600 stores as opposed to being part of my group with 40 stores, so that’s a major bonus to franchisees… So they’re not disadvantaged at all. In fact, they’re going to be way better off and their individual businesses will be worth more money.”
QSRH chief Mark Lindsay was not available for comment prior to publication.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
