Cracker Barrel purchased about 59 percent of Punch Bowl Social’s economic interest and roughly 49.7 percent of its voting interests up front-a move that cost $89 million. Unlike Maple Street, though, Cracker Barrel didn’t acquire the company outright. For one, the company is suddenly a multi-concept organization with two complementary growth vehicles alongside its 660-unit flagship.Ĭochran said Maple Street complements its July announced strategic partnership with emerging eatertainment brand Punch Bowl Social. With Maple Street in tow, Cracker Barrel’s fiscal 2020 promises to be an eventful year. The Maple Street team will relocate to Nashville as part of the change. Cochran didn’t get into specifics during the call, but said it should last until spring, with growth accelerating in the months following. The integration process is well underway. “We are working on the site selection strategy and are refining our estimate for Maple Street's ultimate build out.” The company plans to share more at its investor day in late June. “We believe Maple Street has strong growth potential,” Golder added. Current unit economics are below these levels, “but we anticipate achieving the run rate for these targets shortly after we implement a staggered rollout of planned initiatives upon the completion of the integration,” she said. Maple Street has targeted average-unit volumes north of $1 million and store-level EBITDA over 17 percent, Golder noted. Cochran said Maple Street stood out and Cracker Barrel continued to follow its progress. We're committed to preserving the integrity of the Maple Street brand.”Ĭochran and Moore first met a few years back when Cracker Barrel was assessing fast-casual opportunities as part of a “extend the brand” strategy. “Maple Street will be able to leverage Cracker Barrel's resources and expertise. “Our brands share many values and similarities such as made-from-scratch cooking and genuine hospitality,” Cochran said. ![]() Six of the seven should flip “in the coming months,” CFO Jill Golder said.Īnd it shouldn’t be a dramatic switch. In addition to taking Maple Street on as a high-leverage growth concept, Cracker Barrel plans to convert all of its Holler and Dashes to the brand. The result was an October all-cash transaction for $36 million that also affected Cracker Barrel’s seven Holler and Dash fast casual assets. “While he was prepared to go through a full search process for perspective buyers, he preferred a trusted strategic partner with a long-term perspective,” she said during the casual leader’s first-quarter review. Founded in 2012, Maple Street scaled to 28 corporate units and five franchised, but recognized it could benefit from additional resources and expertise, said Sandy Cochran, Cracker Barrel’s chief executive officer. A few months ago, Scott Moore, founder of the Jacksonville, Florida-born fast casual, reached out asked if Cracker Barrel would be interested in a deal. Cracker Barrel didn’t go after Maple Street Biscuit Company.
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