SPB Hospitality, the parent company of Krystal, has offloaded Old Chicago Pizza and Taproom.
SPB Hospitality Sells Old Chicago Pizza + Taproom to New Ownership
SPB Hospitality, the parent company behind popular restaurant brands such as Krystal, Logan's Roadhouse, and J. Alexander's, has sold the 60-unit pizza pub chain Old Chicago. The sale was confirmed by Josh Kern, CEO of SPB Hospitality, but the buyer's identity and the sale price remain undisclosed.
Old Chicago was part of the CraftWorks deal that SPB Hospitality acquired in 2020. This sale marks the only remaining piece from that deal to be sold off by SPB Hospitality. The reasons for the sale were not specified in the provided article.
The new ownership group for Old Chicago plans to invest in growing the brand. SPB's CEO Josh Kern expressed confidence in the vision of the new owners, stating that Old Chicago is well-positioned for continued success. However, no official announcement has been made detailing the new owner's roadmap.
Old Chicago, which had more than 50 units across 21 states at the time of sale, has faced closures in some markets, including Indiana and Colorado. This suggests that some operational downsizing or repositioning may be underway. The sale leaves SPB with eight concepts in total, more than 450 locations.
The sale is part of SPB Hospitality's efforts to focus more on its core brands. In 2021, SPB Hospitality sold five brewery concepts from the CraftWorks deal to Kelly Companies. Last year, the company also acquired Amada and Village Whiskey.
Old Chicago's problems have coincided with a challenging market for full-service restaurants, especially those that specialize in pizza or beer. Systemwide sales for Old Chicago declined more than 16% last year, to $155.4 million. Despite these challenges, Kern remains optimistic about the brand's future under new ownership.
The sale does not affect the operations of Krystal, Logan's Roadhouse, or any other core brands owned by SPB Hospitality. The company continues to focus on these brands, aiming to strengthen their position in the market.
The sale of Old Chicago Pizza + Taproom, a 60-unit pizza pub chain owned by SPB Hospitality, signals a shift in focus towards core businesses for SPB, as they aim to strengthen their position in the market. The new ownership group is planning to invest in growing the Old Chicago brand, positioning it for continued success in the competitive finance and retail sectors, specifically within the industry of full-service restaurants.
