After Complex Deal, Carrols Pair Focus on Boosting Sales
After 41 years at Carrols Restaurant Group, CEO Dan Accordino figured he had a choice last year. “Either I’d collect Social Security or I’d buy 278 restaurants,” he says with a laugh.
He chose the latter, as many in restaurant franchising know, executing with his CFO Paul Flanders a complex deal that included spinning off Fiesta Group as a separate publicly held company, agreeing to purchase 278 corporate-owned restaurants from Burger King, and selling $150 million in bonds to pay for it all.
The bold deal earned the pair an award in the new Franchise Times Dealmakers project, and this blogger visited their Syracuse, New York, headquarters on Monday to learn how they pulled it off.
Now, Carrols has to make the newly acquired stores perform. “The first thing is to generate more cash out of these stores,” Flanders says, and Accordino agrees: “The only thing I’m disappointed in is the lack of sales response,” even though they’ve made quick operational improvements.
Watch for their full story in the April issue, along with 10 other Dealmakers of the Year.