Restaurant M&A is Making a Comeback

Will we see a rise in the number of mergers and acquisitions in the restaurant industry? Certain experts think so.

In an article from CNBC, author Lauren Hirsch writes, “Restaurant deals are making a comeback. In part, this is because of the restaurants that went public several years ago amid a flurry of IPOs have watched their valuations drop. These restaurants have struggled to grow beyond their core region and to compete with newer or larger players”.

In the article, Hirsch discusses:

  • Corporate buyers
  • Private equity buyers
  • Targets for M&A

Hirsch continues, “ The industry has also become more challenging. People are increasingly eating at home and a rising minimum wage is making business more costly. The promotional environment, which started several years amid a drop in beef prices, makes it harder to earn a profit. Scale helps with the buying power of food and cash to invest in increasingly important digital capabilities and mobile payment systems”. How will your restaurant be impacted by mergers or acquisitions?

To read more, see the full article from Laura Hirsch in CNBC.