This Near-Extinct Burger Chain Has Just Been Saved
Several months into its liquidation proceedings, the parent company of Luby's Cafeteria and Fuddruckers chains has managed to sell off its iconic better burger brand to an affiliate of its largest franchisee. Thanks to the buyout, the survival of the Fuddruckers brand has become more certain, as the chain will now operate under new ownership.
According to Restaurant Business, Luby's Inc. announced an $18.5 million buyout deal with Black Titan Franchise Systems, which already owns and operates 13 Fuddruckers units and plans to acquire two more. The new owner will also acquire master worldwide ownership of the Fuddruckers brand, which will allow it to grow the franchise business both domestically and internationally. Fuddruckers currently has 92 locations across the United States, and chances are good most of those locations will remain open for business.
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"As a Fuddruckers franchisee, I have a vested interest in ensuring that all Fuddruckers franchisees have the resources, infrastructure, and operational and marketing support they need to maximize their return on investment," Black Titan CEO Nicholas Perkins said in a statement.
Luby's Inc. said it will hold onto five standalone Fuddruckers restaurants, as well as four combined locations that house Luby's Cafeterias, too. The company is still in search of buyers for Luby's Cafeteria and Luby's Culinary Contract Services businesses.
In September of last year, Texas-based Luby's Inc. announced it would be liquidating the business and selling off its real estate and other assets after it failed to generate offers for all or portions of its operations that would pay off its debts. While the company maintained it would be flexible to offers for any future buyers, some of the grimmest predictions for the future of its two chains suggested they may end up being retired for good.
While the dissolution of Luby's Inc. is still set for finalization by June 2022, Fuddruckers fans will be able to continue enjoying the "World's Greatest Hamburgers."
For more, check out:
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