Franchisee Southpaw buys 43 Taco Bell restaurants
Multi-unit franchisee expands Taco Bell presence by acquiring 43 locations in Ohio.
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Southpaw, a franchisee of Taco Bell and Dunkin', has acquired 43 Taco Bell locations in Ohio from Mas Restaurant Group. This deal adds to Southpaw's significant portfolio and reflects Taco Bell's strong market position despite broader industry challenges. Terms of the deal were not disclosed.
Why It Matters
This acquisition may compress available territories in Ohio for other franchisees and signals continued strong demand for Taco Bell locations, enhancing potential unit economics for Southpaw.
Mas Restaurant Group has sold 43 Taco Bell locations in Ohio to Southpaw, a prominent franchisee operating 180 locations of Taco Bell and Dunkin’. While the transaction's financial details remain undisclosed, the deal highlights the operational strength and growth potential of Mas Restaurant Group's footprint in Ohio. Andrew Mendelsohn, managing director with Bessemer Investors, which backs Mas Restaurant Group, remarked that the sale “underscores the strength” of their operations and emphasizes the “tremendous value of these restaurants.” He maintained that despite transitioning ownership, the company's core mission of delivering “best-in-class customer service remains unchanged.”
The sale follows a prior divestiture in Texas, where Mas Restaurant Group sold 44 Taco Bell locations to Ghai Restaurant Group. With Southpaw now adding Ohio to its geographical reach, it operates in several states, including New York, New Jersey, Maryland, Kentucky, Georgia, and Louisiana. This expansion signals a move towards increased consolidation within the Taco Bell franchise network, which has historically shown resilience in a challenging restaurant market, posting an 8% increase in same-store sales in the first quarter.
For franchisees within the Taco Bell system, continuity appears likely as the established management practices of Southpaw, along with the ongoing support from Mas Restaurant Group, may help maintain operational standards and guest service. There are no immediate indications of changes to the royalty structures or franchise policies. However, monitoring any shifts in support systems and franchisee relations will be essential as Southpaw integrates the new locations.
Piper Sandler and Unbridled Capital acted as financial advisors for Mas Restaurant Group, while Sidley Austin provided legal counsel for the transaction. Given Taco Bell's historical performance and high valuation in the franchise market, potential buyers and franchisees should watch for further developments in unit sales and market dynamics as Southpaw’s integration unfolds.
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