- Franchisee Anil Yadav’s company, YTG Enterprises, has bought a controlling interest in 48-unit fast casual brand Nick the Greek, the company announced Monday.
- Nick the Greek’s founders retain a large minority stake in the company, and the leadership team will remain intact. The size and value of each stake was not disclosed.
- Yadav, the largest Jack in the Box franchisee and an operator of several TGI Fridays and Denny’s restaurants, previously purchased Taco Cabana in July 2021 for $85 million.
In a statement, Yadav said his company had been looking to acquire another growing franchisor, and Nick the Greek is expanding rapidly with a development pipeline of 70 units. Yadav is an owner/operator of nearly 600 units nationwide, and Nick the Greek’s current and expected units would push that number up to over 700.
Richard Pawlowski, CFO of Yadav Enterprises Inc., said the chain has “compelling unit-level economics.”
“System average unit volumes are approximately $1.5 million, and the most recent openings have far exceeded this number,” Pawlowksi said. “With modest development costs in the $400,000 to $600,000 range, before allowances, and an operating model that comfortably fits into 1,500 to 1,800 square-feet, on a sales-to-investment ratio and on a fully-capitalized basis, the model is attractive."
Those modest development costs, and the relatively small size of Nick the Greek concept’s units, could make it easier for the brand to grow in an environment where development has been strained by everything from permitting delays to high real estate costs. Nick the Greek is concentrated in the Southwest, with units in California, Nevada and Utah, as well as outposts in Texas and Kansas.