Togo’s Eateries, Inc., a “West Coast Original” since 1971, today announced that Nimes Capital will acquire the sandwich franchise. Growth equity firm Mainsail Partners, Togo’s current co-owner, has agreed to sell its shares to Nimes Capital.
CEO Tony Gioia will retain his ownership stake in Togo’s and continue to lead the ongoing revitalization and expansion of the franchise.
Togo’s boasts one of the highest average unit volumes in the QSR sandwich segment at $660,000 and over 20 percent of the chain’s units perform at over $813,000. Mainsail Partners and Gioia acquired the franchise in 2007, and Togo’s now has 251 restaurants in six western states that serve the Big, Fresh, Meaty sandwiches that define the brand.
Under a seasoned leadership team, Togo’s has revitalized its brand, improved operations, and entered into company-owned operations. The franchise has introduced new logos, revamped restaurant designs, updated menus, and added online and mobile ordering. The Togo’s executive team, including Chief Operating Officer Jim Peros, Chief Marketing Officer Renae Scott, Chief Development Officer, Todd Peterson, and Chief Financial Officer, Susan Koch, will continue to lead the company under Nimes ownership.
“Our partnership with Mainsail has allowed us to achieve so much over the past eight years,” said CEO Tony Gioia. “As with all private equity funds, there is an end-point to their investment horizon, and in preparation for that moment, we began a thorough search for new investors. We could not be more pleased to welcome Nimes as our new partner and owner. They embrace our values and culture, and they will help us take Togo’s to the next level.”
“Tony and his team have been terrific partners over the course of our investment in Togo’s,” said Jason Payne, Founding Partner at Mainsail Partners. “We are very proud of the team and what we’ve achieved together over the past eight years. We are excited to see the company in good hands and we will continue our relationship with the brand as loyal customers.”
Togo’s Holdings, LLC and Mainsail Partners engaged Brookwood Associates to advise the company in its search of a new financial partner. Nimes emerged as the ideal partner for Togo’s. Nimes has significant restaurant industry experience and operating partner relationships to leverage in its strategic guidance of Togo’s.
“Togo’s represents the type of business Nimes looks for, with a long history of success, a great management team staying in place, and numerous positive future prospects,” said Nimes founder and CEO David Nazarian.
Nimes Capital is the private equity investment arm of Nazarian Enterprises, established by David Nazarian to diversify and manage the capital of the Nazarian family.
December 15, 2015