- The company is planning to expand the burger franchise further after the acquisition
Yum! Brands, the parent of fast-food chains KFC, Pizza Hut and Taco Bell, recently confirmed that it is acquiring The Habit Burger Grill, a California-based burger chain, for $375 million. The burger joint is known for its chargrilled patties and offers a wide range of sandwiches and salads.
Yum! Brands’ CEO, David Gibbs commented that The Habit Burger Grill is a significant addition to the company considering it has a robust unit economics and exhibits untapped growth potential in both the U.S and internationally. The Habit Burger Grill provides its customers with a California-style diverse menu that has premium ingredients at a value similar to QSR.
Gibbs further added that the transaction is advantageous for both parties as it permits Yum! Brands to offer new investments for its franchisees as well as broaden the trend-forward brand with the help of Yum!’s unparalleled scale and strengths in purchasing, brand-building and franchising.
Apparently, The Habit Burger Grill has nearly 300 franchised restaurants across countries like China and the U.S. With the acquisition by Yum! Brands, the chain is now looking forward to expanding further.
Russel Bendel, The Habit Burger Grill’s CEO and President stated that the firm has primarily been focusing upon becoming a brand with complete access by expanding its online ordering & mobile channels, improving its in-store experience by launching drive-thrus, increasing its delivery business and also introducing kiosks as well as technology-centric solutions to run daily operations.
Bendel continued that the company has become an attractive candidate for such transactions due to these actions taken to expand its business.
The acquisition may not entail a collaboration of menu items to be displayed at restaurants like Pizza Hut, KFC and T-Bell, but could well be providing more options for fast-casual burgers in the future with the expansion through Yum! Brands.
Source Credit- https://www.thrillist.com/news/nation/yum-brands-the-habit-burger-grill-acquisition