Growth Through Acquisition

June 1, 2008

I n the past six years, Focus Brands has undergone tremendous growth by acquiring a number of high-profile targets. “Each brand was a little different, and the needs were different when we purchased them,” says Steve Romaniello.
 
Carvel
Purchased November 2001 from Investcorp
Then: 350 units
Now: 536 units in 25 states and the District of Columbia
“When we bought Carvel, they had only six people dedicated to the 320 or so franchises that were operating. In that case, we came in and had to provide all facets of support … hiring 40-some-odd franchise professionals.”

Cinnabon and Seattle’s Best Coffee International
Purchased: November 2004 from AFC Enterprises
Then: Cinnabon – 592 units; Seattle’s Best Coffee – 150 units in 11 countries
Now: Cinnabon – 728 in 41 states and 30 countries, Seattle’s Best Coffee – 162 units in 11 countries
“We got an international infrastructure we were able to plug our other brands into … And there were a number of people at Cinnabon who were awesome executives who were able to fill [senior level] spots.”


Schlotzsky’s
Purchased November 2006 from Bobby Cox Companies
Then: 365 units
Now: 375 units in 34 states and six countries
“They had an extremely high performing corporate owned and operated division that also benefited Focus. In order to be a decent acquirer, we needed to have that competency.”

Moe’s Southwest Grill
Purchased August 2007 from Raving Brands
Then: 360 units in 34 states
Now: 387 units in 34 states and District of Columbia, and Canada
“Our core competency is managing some of these brands, and [Raving Brands] core competency is developing the brands and that’s why it was a good partnership … With Moe’s, where you can customize and where’s there isn’t a freezer or microwave in the place, we [felt like we] could offer healthier, fresh food.”