KFC and Starbucks franchisee Soul Foods receives investment to double 400-strong portfolio
KFC and Starbucks franchisee Soul Foods Group receives investment to double 400-strong portfolio in next five years: Soul Foods Group, a multinational quick-service restaurant franchisee with almost 400 sites across the UK and Canada, has received a “significant” minority investment that will be used to double its portfolio in the next five years. A consortium of leading institutional investors, formed of Centerbridge Partners, Metric Capital Partners, and OpCapita, has made the investment.
The founding Janmohamed family, led by Aly Janmohamed, will continue to be the majority owner of Soul Foods Group. The capital will be invested in new site development, renovating existing site infrastructure and acquisitions.
Since being founded as a family-run, single-store operator in the UK. in 1985, Soul Foods Group has grown rapidly. It is among the top three largest franchisees of KFC and Starbucks in its chosen markets and manages restaurants for Burger King and Taco Bell.
Shehzad Janmohamed, co-chief executive of Soul Foods Group, said: “I’m looking forward to working with our new partners, who can support our growth with their capital, expertise and network. Importantly for a family-owned business, they also understand our culture and values, which have underpinned the success of our firm for almost 40 years. Together we will be in a stronger position to grow our footprint, support our brand partners, bring new options to customers, and create more opportunities for our employees and local communities.”
Timothy Denari, managing director, Centerbridge Partners; Giovanni Miele, partner, Metric Capital Partners; and Joshua Spoerri, managing director, OpCapita, added: “We are excited to partner with Aly and Shehzad as well as the wider Soul Foods Group team. The business has a strong management team and a leading position in an attractive and growing market. We are looking forward to supporting Soul Foods Group as it continues its strong growth trajectory.”
The financial details of the transaction were not disclosed. Latest accounts for Soul Foods Group showed the business saw turnover increased 46% to £109.2m for the year ending 27 June 2021, compared with £74.8m the previous year as the business benefited from the demand for takeaway and delivery and covid-related incentives. Ebitda climbed to £18.5m from £4.4m the year before. The company saw a pre-tax profit of £10.6m compared with a loss of £3.2m the previous year.