Next year Australia’s major franchised chicken fast food chains will get new owners. And they'll need hefty pockets.
The Quick Service Restaurant Holdings (QSRH) business is expected to be sold or floated in 2017 with a price tag of about $650m.
That’s a $200m boost for private equity firm Archer Capital which reportedly paid $450m in 2011 to buy the business from rival Quadrant Private Equity.
Sales across the three franchised chains Red Rooster, Oporto and Chicken Treat generated $718m in 2015-16, with a forecast of $750m this financial year, according to Fairfax Media.
So how will another change in ownership affect franchisees?
Rob Coombe, CEO of Quick Service Restaurant Holdings, told FranchiseBusiness “The key for franchisees is that they will continue to deal with the team that has turned around the business. The management teams' in each of the brands are very motivated and excited by our future plans and the runs on the board that are being delivered.
“As a result we see no reason why a change in ownership will make any difference to us continuing to deliver these results.
“We don't believe that ownership per se makes a difference to the performance of a business. It all comes down to the quality and calibre of the management.”