Dive Brief:
- Fat Brands chairman Andrew Wiederhorn returned to his former post as CEO effective Wednesday, the company said in a press release, two years after he left while battling fraud charges.
- Former co-CEO Ken Kuick will solely focus on his role of CFO of Fat Brands and Twin Hospitality, per the release. Former co-CEO Taylor Wiederhorn will continue to serve as chief development officer.
- Andrew Wiederhorn stepped down as CEO in 2023, but remained chairman, after the announcement of a federal investigation over an allegedly fraudulent loan scheme involving $47 million. The U.S. Department of Justice dropped the charges against Fat Brands and Andrew Wiederhorn in July.
Dive Insight:
Under Andrew Wiederhorn, Fat Brands will continue to prioritize “organic expansion, targeted acquisitions, increasing our manufacturing facility’s capacity and focusing on our balance sheet,” he said in a statement.
The company already has a pipeline of over 1,000 units and expects to open 100 restaurants this year, according to an earnings release. It continues to open co-branded units and sign large deals, including a 40-unit deal to open Fatburgers across Florida over the next 10 years.
Fat Brands is also working to grow digital sales across several brands, including Great American Cookies. As of Q2, digital sales accounted for 25% of the cookie brand’s total revenue and loyalty-driven sales were up by 40%, Andrew Wiederhorn said in the earnings release.
One of the company’s biggest goals is to expand the manufacturing capabilities of Great American Cookies. Its current manufacturing facility operates at roughly 45% capacity and the facility occupies only a fraction of the four acres it stands on, allowing for additional expansion. This will be particularly helpful as the brand expands its reach through efforts like its August deal with Virtual Dining Concepts and Chuck E. Cheese. It is now offering cookies for delivery from 400 Chuck E. Cheese locations.
