Spartanburg, South Carolina-based Denny’s Corporation (Nasdaq: DENN), the franchisor and operator of the large franchised full-service restaurant chains, has bought Keke’s Breakfast Cafe, a brand of Orlando-based K2 Restaurants Inc.
Denny’s announced the deal, valued at $82.5 million, during its May 3 first quarter earnings report. The transaction is slate to close later this year.
“Keke’s is a high-growth brand that aligns well with our core competency while providing us with an opportunity to participate in the fast-growing A.M. eatery segment. We intend to utilize the proven capabilities of our franchise-focused business model to develop Keke’s across multiple states with the long-term target of becoming the A.M. eatery franchisor of choice.” said John Miller, CEO of Denny’s, via the earnings report.
He added that Keke’s will drive incremental growth that complements Denny’s.
Keke’s Breakfast Cafe opened its first restaurant in 2006, and serves a variety of breakfast items including waffles, pancakes, french toast, omelettes and more. Keke’s has 52 restaurants — 44 franchised locations and eight company-owned locations — including more than two dozen in Central Florida.
Denny’s report adds that Keke’s Breakfast Cafe will operate independently “with its own leadership, strategies, products, marketing, operations and development initiatives.”
Executives with K2 Restaurants were not available for comment.
Meanwhile, the restaurant industry in general is slated for growth as the food service industry is forecasted to reach $898 billion in sales and the industry’s workforce of 14.9 million people will grow by 400,000 in 2022, said the National Restaurant Association.