PHOENIX, AZ (3TV/CBS 5) -- It's a major move in the dining industry that will affect dozens of restaurants in Arizona.
Cheesecake Factory confirms it is acquiring Fox Restaurant Concepts, a giant in the Valley food scene.
The deal is expected to close toward the end of the third quarter of fiscal year 2019.
Sam Fox, founder and chief executive officer of Fox Restaurant Concepts (FRC) called the partnership “the first of its kind for the restaurant industry.”
According to Fox Restaurant Concepts website, the group operates around 50 restaurant locations nationwide, many of them right here in the Valley.
FRC restaurants include Blanco Tacos & Tequila, Culinary Dropout, Flower Child, Juby True, Little Cleo’s Seafood Legend, Modern Burger, North Italia, Olive & Ivy Restaurant & Marketplace, The Arrogant Butcher, The Greene House, The Henry, The Showcase Room, Wildflower and Zinburger.
As part of the newly-announced deal, the transactions will be completed for $308 million in cash at closing, with an additional $45 million due during the next four years.
The Cheesecake Factory previously invested $88 million in North Italia and Flower Child during the last three years in anticipation of this purchase.
“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.
"David Overton and I quickly realized the magic occurring between our organizations while we worked through North Italia’s integration," said Fox. "With our aligned cultures and philosophies, The Cheesecake Factory is the right partner to embrace our creative spirit, enabling us to innovate concepts, while providing the infrastructure and capital to scale.”
So what does the deal mean for your favorite FRC restaurants?
FRC will reportedly operate as a wholly-owned subsidiary, and continue to be led by Fox from FRC’s headquarters in Phoenix.
Fox is a 10-time James Beard Award semifinalist for Restaurateur of the Year, New York Times best-selling cookbook author and recently named one of the 50 most influential people in the restaurant industry by Nation’s Restaurant News for the fifth consecutive year.