The chairman and CEO of Applebee's franchisee Apple American Group has acquired Southern Bells Inc., a franchise group of 76 restaurants - mostly Taco Bell but also some KFC and Pizza Hut units - in Indiana, Illinois and Kentucky, according to a statement.
Greg Flynn, chair and chief executive of what is now called Flynn Restaurant Group LLC, said the acquisition will bring about $97 million in revenue to the company, raising its annual system wide revenues to about $1.25 billion and making it one of the largest franchise operations in the U.S.
Terms of the deal, which closed Dec. 17, were not released. The company will now operate with two divisions, Apple American Group and Bell American Group.
"We are excited to kick off 2013 with this re-organization and the opportunity to take the talent we've developed for restaurant franchising to another concept while keeping our focus on Applebee's intact," Flynn said.
Recognized as the largest franchisee in the Applebee's system and, domestically, of any concept in the restaurant industry, this expansion and rebranding represents a diversification of Flynn's restaurant portfolio which up until now has been solely focused on Applebee's.
"Our focus on building new units and keeping the environments of our current restaurants fresh is just one example of our investment in the Applebee's brand," said Flynn. "This dedication to the restaurant experience also will extend to Bell American Group management."
The group has steadily grown its Applebee's holdings through both acquisition and opening new restaurants. Most recently in November, Apple American acquired 99 of the casual-dining restaurants from a Poland-based franchise group, AmRest Holdings, for $94.8 million - the biggest deal the group had ever done, Flynn said.
Flynn Restaurant Group LLC owns and operates 514 restaurants in 25 states, employing more approximately 28,000 employees and generating $1.25 billion in annual revenues. Flynn Restaurant Group is the largest U.S. franchisee in the restaurant industry.
