Cheesecake Invests in Two Restaurant ChainsTuesday, November 15, 2016
Cheesecake Factory Inc. will support the development of two expanding brands through a strategic relationship with Fox Restaurant Concepts, the company announced Monday.
The Calabasas restaurant group will make an initial minority equity investment and provide ongoing growth capital to eatery chains North Italia and Flower Child. Fox Restaurant Concepts, based in Phoenix, will continue to manage the day-to-day operations of both brands. The arrangement includes opportunities for Cheesecake Factory to assume future majority or full-ownership positions in the chains.
“As an entrepreneurial leader known in our industry for his vision and execution, we are pleased to partner with Sam Fox to support the growth of these two highly differentiated concepts,” David Overton, chief executive of Cheesecake Factory, said in a prepared statement. “We share a similar culture and philosophy, making this a good strategic fit for both companies.”
North Italia is an upscale, full-service dining establishment with nine locations across five states, including outposts in El Segundo and Irvine. Its menu features traditional Italian cuisine with a modern twist, such as short rib radiatori and squid ink mafaldine. All pasta is made in-house daily.
Flower Child is a fast-casual diner offering salads, wraps and bowls made fresh from organic ingredients. The restaurant has five locations in three states, including one in Santa Monica. A second California outpost is slated to open this winter in Del Mar, according to the eatery’s website.
Shares of The Cheesecake Factory Inc. lost 3.2 percent or $1.98 to close Tuesday at $58.17 on the Nasdaq.