All are on waterfront locations in the greater Vancouver, British Columbia area. The seller is the Vancouver-based Spectra Group of Great Restaurants Inc. This marks McCormick & Schmick's first foray into Canada and takes its portfolio to 72. All but the Boathouse brand units are in the US.
While ticking up the size of the buyer's portfolio, the transaction cuts Spectra Group's portfolio in half. It continues to operate the Kingston Taphouse & Grille, an urban pub; Red Door, an Asian-concept, and Fresh Grill in Vancouver along with Romano's Macaroni Grills in Vancouver and Victoria, which are under license from Brinker International.
"The Boathouse is a welcome addition to our company and shares many characteristics with our McCormick & Schmick's restaurants," says Doug Schmick, chairman and CEO, in a statement. "We are delighted to be expanding our restaurant portfolio with such and exciting and respected brand."
Noting that this represents his company's entry "into the Canadian restaurant market," Schmick adds, "we see significant growth opportunities for the Boathouse brand in British Columbia as well as the potential to enter other Canadian markets." When the planned acquisition was first announced during a February conference call, Emanuel Hilario, CFO and VP of finance, said the five operating Boathouse units now produce $19 million in annual revenue.
During the same call, as GSR reported, Schmick said his company also plans to open 11 new McCormick & Schmick's units in the US this year. Hilario characterized the parent company's cash flow from operations as "strong," and said that would fund from 13% to 15% growth per year. The goal, he added, is to grow the namesake brand to between 150 and 200 units nationwide.
Without losing its focus on seafood, the chain is also adding more steaks to its menu. A new culinary unit devoted to steak additions is expected to be in place by mid-year.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
