They've been to Six Flags and a Redskin's game, what's next, dinner and a Caribbean cruise?
Redskins Owner Closes on Johnny Rockets Restaurant Chain Acquisitionhttp://www.costar.com/News/Article.aspx?id=A0F8DF8CE206A31F40637DAF084B8367
Snyder Sees Opportunity to Grow Chain to 1,000 Restaurants Within 5 Years
Lake Forest, CA-based Johnny Rockets Group Inc., franchisor and operator of Johnny Rockets, the retro-50's themed burger restaurant chain, has been acquired by Redzone Capital Fund II, an investment company created by Washington Redskins owner Daniel Snyder.
A representative of Apax Partners confirmed the sale closing with Costar Group yesterday, but declined to reveal specific terms of the deal. Until now, New York City private equity firms Apax Partners and Centre Partners have been part-owners of Johnny Rockets, along with the founding Teitlebaum family, since 1995.
Snyder, who has made no secret of his interest in the entertainment industry, has completed several recent high profile deals including the financing of Tom Cruise's production company after it was dropped by Paramount Pictures last year, and the purchase of floundering Six Flags theme parks in 2005.
Snyder views the Johnny Rockets restaurant as a nice fit with some of his other entertainment ventures, as indicated by announcements that more Johnny Rockets restaurants will be added at Six Flags theme parks and on Royal Caribbean cruise ships.
In a press release announcing the acquisition, Snyder said the restaurant chain has tremendous growth potential. "There's no reason we shouldn't see 1,000 Johnny Rockets locations within the next five years," he said.
As Redskins' fans can attest, Snyder is a master marketer who is prone to hyperbole at times. However, reaching 1,000 locations in five years would require a growth of 485% by 2012. No one disputes the fact that Johnny Rockets has enjoyed robust growth, expanding at a rate exceeding 20% per year recently. Currently the chain has 176 U.S., 21 International, and 9 cruise ship locations.
Johnny Rockets typical restaurant size is 2,400 square feet; however, Snyder hopes to speed up growth by debuting a condensed version of the restaurant called "Johnny Rockets Express," which will be smaller and less capital intensive.
The company said it prefers end-cap locations in existing developments and does well in specialty retail environments, such as lifestyle retail centers, tourist locations, airports, and malls. Areas currently targeted for expansion include Arizona, Colorado Springs, Georgia, Kansas City, Louisiana, Maryland, Minneapolis, St. Louis, Nebraska, New Mexico, Oklahoma, Oregon, Tennessee, and Salt Lake City.
