Fox Restaurant Concepts sold to The Cheesecake Factory
PHOENIX - The Valley-based company behind popular restaurants like Culinary Dropout, North Italia, and Flower Child has been sold to The Cheesecake Factory.
Fox Restaurant Concepts, owned by Sam Fox, has agreed to be acquired by The Cheesecake Factory for $308 million. Fox will continue to lead the company and their headquarters will remain here in the Valley. The deal includes the group's local restaurants, including North Italia and Flower Child, which has locations across the US.
"Since making our initial minority investments in North Italia and Flower Child in 2016, we have not only helped fuel the growth of both brands, but also developed a deep relationship with Sam Fox at Fox Restaurant Concepts," said David Overton, chairman and chief executive officer of The Cheesecake Factory, Inc. "We realized the true potential of this relationship as we worked through the integration process for our planned acquisition of North Italia. It became evident that the combination of two of the most experiential and entrepreneurial restaurant companies could drive greater value as one organization."
The Cheesecake Factory previously invested $88 million in North Italia and Flower Child concepts over the last three years in anticipation of the purchase. The deal is expected to close in the third quarter, with $308 million in cash at closing, plus an additional $45 million due over the next four years.
Once the transactions are complete, North Italia's and Flower Child's operations will be located at The Cheesecake Factory's corporate headquarters in Calabasas Hills, California. Fox Restaurant Concepts in its entirety will continue to operate in Phoenix.
"I made this choice because it is the best decision for everyone at FRC," Sam Fox said. "For our partners, and for me, as it solidifies our vision of growth while allowing us to do what we love to do: Create and incubate new restaurant concepts."
Many Phoenicians, like Milton Schwartz Junior who owns Pride Cleaners, says the sell is a good thing.
"I feel that Cheesecake has been around a long time," Schwartz said. "I love their cheesecake and I think they're going to make a good [choice] with this - they know their business."
Often times, when sales happen, people worry about the quality of food and restaurants.
"I think it's a possibility in the beginning that can happen," Schwartz said. "And then they tweak it. Everyone works differently - the kitchen in one place isn't the same."
Sam Fox has issued the following statement:
"After a lot of thought and careful consideration, and after a proven, very successful partnership in North Italia and Flower Child, I have accepted an offer from The Cheesecake Factory to acquire our company. I made this choice because it is the best decision for everyone at FRC, for our partners, and for me, as it solidifies our vision of growth while allowing us to do what we love to do: create and incubate new restaurant concepts. First and foremost, I am not going anywhere. Second, this is an incredible milestone for our company - a milestone very few other restaurant companies ever reach. We would not be here today if it wasn't for our outstanding team. Third, nothing will change, and we think it is going to make FRC better. The Cheesecake Factory is investing in FRC because of who we are and what we do - they do not want to change anything about FRC."
-- Sam Fox