BBQ Holdings Inc., which owns Famous Dave's and Granite City Food and Brewery, has added six California Tahoe Joe's restaurants to its stable.
The Minnetonka-based company on Friday completed the acquisition after winning a bankruptcy auction for the assets. BBQ Holdings is paying $4.2 million in cash, plus up to $1 million in payments that will be determined by the bankruptcy judge and about $100,000 in other liabilities including leases, according to a filing with the Securities and Exchange Commission.
The Tahoe Joe's acquisition is the second large purchase this year for BBQ Holdings. In June, the company paid $13.5 million for the Village Inn and Bakers Square brands.
Tahoe Joe's, a six-restaurant chain, started 26 years ago and it is known for its Lake Tahoe steaks, burgers and pork chops, BBQ Holdings said. The transaction also includes the intellectual property of Home Town Buffet, Ryan's, Furr's Fresh Buffet and Old Country Buffet, although the company said it "has no immediate plans to reopen the buffet brands."
The Tahoe Joe's steakhouse chain will complement BBQ Holdings' other assets, said Jeff Crivello, the company's chief executive.
"This well-loved brand will fold seamlessly into our portfolio, and we can't wait ... to get the brand on a rejuvenated path to growth," Crivello said.
Crivello said BBQ Holdings' growth is on a "steep trajectory," and will continue with its strategies of not only improving how the current restaurants are run but adding ghost kitchens, virtual brands and dual concepts to the mix. The company also will continue looking for other acquisitions, he said.
"With Tahoe Joe's roots in BBQ, their famous pellet-broiled steaks and chops are a perfect fit for the Famous Dave's menu," the company said in a news release.
BBQ Holdings formed in 2019 to diversity its holdings beyond Famous Dave's. In 2020, it bought Granite City, also based in the Twin Cities, out of bankruptcy. In the April-June quarter, the company recorded $45.5 million in sales, up from $27.8 million in the same period in 2020. Net income was $16.4 million, compared with a loss of $6.2 million in year-ago period.