US-based cafeteria-style restaurant chain Lemonade Restaurant Group has signed an agreement with Modern Market Eatery to merge their operations.
Lemonade and Modern Market Eatery are portfolio companies of American private equity firm Butterfly. Terms of the deal were not disclosed.
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Called Modern Restaurant Concepts, the new platform will have a combined portfolio of 58 restaurants across ten markets, including Denver, Austin, Dallas, Phoenix, Washington, DC, Maryland, Los Angeles, San Francisco, San Diego, and Orange County.
In addition, Lemonade and Modern Market Eatery brands will operate and expand in existing and new markets through franchising and licensing, and corporate growth.
Modern Market Eatery co-founders and co-CEOs Anthony Pigliacampo and Rob McColgan will lead the newly formed business, while Lemonade former CEO Larry Kurzweil will resume his role as operating partner of Butterfly and advisor to the company.
Pigliacampo said: “We are thrilled to partner with Lemonade in the continued pursuit of fulfilling our mission of serving delicious, healthy food to as many people as possible.
“This merger creates a platform with the scale necessary to truly disrupt the restaurant landscape.”
Furthermore, Modern Restaurant Concepts named Jim Sullivan, former chief development officer of CKE Restaurant Holdings and Carl’s Jr for the same role in the company.
Under the agreement, global investment firm KKR will become a shareholder in the newly formed entity by contributing its investment in Lemonade. It will join Butterfly and the management team.
