Portfolio Company Update  |  May 7, 2021

Bojangles, Chaac Foods Restaurants, Announce 80-Unit Development Agreement

Bojangles, with more than 760 restaurants throughout the Southeast, announced a new business venture with experienced operator Chaac Foods Restaurants in what they are calling the 40 and 40 deal. The agreement calls for Chaac Foods to open 40 new Bojangles stores over the next seven years, including 20 in Georgia, five in Tennessee and 15 in the Orlando, Florida area, marking a return for the Bojangles brand. Chaac Foods will also acquire 40 existing corporate-owned Bojangles locations across the Georgia, South Carolina, and Tennessee markets.

“We are thrilled to join forces with the accomplished team at Chaac Foods,” says Jose Costa, chief development officer for Bojangles. “The company’s caliber of operations is well-recognized, and to have a partner with that pedigree invest in Bojangles speaks volumes about our brand and our growth plans for the future.” Chaac Foods Restaurants currently owns and operates a variety of establishments, most notably 135 Pizza Huts, along with several Cru Food & Wine Bars, Ling & Louie’s, Applebee’s, and Panda Express, in nine states. Wanting to diversify and step into the fried chicken market, Chaac Foods turned to Bojangles to begin an exciting and promising journey.

“We welcome Bojangles to the Chaac Foods family and are excited to participate in the growth of this highly regarded brand,” says Sam Banon, senior vice president at Gauge Capital, which acquired Chaac Foods in 2019. This is the second major franchise development announced this year by Bojangles. In March, the chain signed another large-scale expansion agreement with longtime franchisee Jeff Rigsby. Both deals include opening stores in brand-new markets.

About Gauge Capital

Gauge Capital is a private equity firm that partners with founders, managers and equity stakeholders of successful middle market companies to maximize their potential. Gauge invests in rapidly growing services and technology-enabled companies in the healthcare services, business services, industrial, consumer and food sectors. For more information, please contact Andrew Peix, Managing Director of Business Development at apeix@gaugecapital.com.