Granite City Buys 4 More Cadillac Ranch Eateries
Granite City Food & Brewery, Ltd., recently announced that it has completed its purchase of the assets of four Cadillac Ranch All American Bar & Grill restaurants.
The St. Louis Park-based restaurant chain said in November that it agreed to pay $9 million to buy the assets of seven Cadillac Ranch eateries and had already closed on the purchase of the Mall of America location, for which it paid $1.4 million.
Last week, Granite City closed on four more Cadillac Ranch restaurants-located in Miami; Oxon Hill and Annapolis, Maryland; and Indianapolis.
To date, the company has paid $7.7 million for the Cadillac Ranch assets it has acquired-a sum that included $1.5 million for Cadillac Ranch intellectual property.
Granite City said last week that it intends to buy additional Cadillac Ranch locations in Indianapolis; Pittsburgh; and Hallandale Beach, Florida. The purchase price for the remaining Cadillac Ranch assets is expected to total $1.5 million-bringing the total to $9.2 million.
The Cadillac Ranch restaurants, which are being sold by Columbus, Ohio-based Cadillac Ranch Group, will continue to operate under that name. They serve classic American fare, much like Granite City.
Granite City said that Cincinnati-based Fifth Third Bank, which in May provided $10 million in debt financing, has provided an additional $5 million loan to help fund the acquisitions. Fifth Third Bank also increased Granite City's line of credit from $7 million to $12 million, bringing its total credit facility to $22 million, although that figure will decrease by $2 million later this year.
“Cadillac Ranch is a differentiated concept that uniquely melds entertainment and casual dining to create a special customer experience,” Granite City CEO Rob Doran said in a statement. “The completion of the five restaurant asset acquisitions to date represents a great step for Granite City and allows us the benefit of using the Granite City engine as a platform to grow into a broader and more dynamic restaurant company.”
Chief Concept Officer Dean Oakey added that Granite City will begin to explore synergies between the Granite City and Cadillac Ranch concepts-including menu, purchasing, and general and administrative expenses.
In May, in addition to receiving debt financing from Fifth Third Bank, Granite City received a $9 million infusion of equity capital from Dallas-based Concept Development Partners. Those funds allowed the company to bring in new executives and board members, including Doran-former executive vice president of McDonald's. Since then, Granite City has been working on plans to grow existing restaurants and construct new ones.
In October, the company announced plans to remodel eight of its restaurants to increase seating capacity in order to reduce wait times.
Granite City operates 26 restaurants in 11 states. The company will open its first Michigan location-in Troy-in February. It is among Minnesota's 70-largest public companies based on revenue, which totaled $89.3 million in its most recent fiscal year.