Bob Evans Farms Inc. will no longer operate its restaurant chain. The food company decided to change its strategy and focus on other parts of its business by letting go of its restaurants.
WESH reported Bob Evans Farms will fetch a total of $565 million for its restaurant business. The money earned from the transaction can be used to boost other parts of its operations such as the food division.
Golden Gate Capital, a private equity firm, agreed to buy the restaurants from Bob Evans Farms. Selling to a private equity firm could be good news for the restaurant's management, staff and clients. When private equity firms buy a business, they usually do not impose changes to the operations.
The restaurants will continue to be led by Saed Mohseni, who is currently its president and chief executive officer. Cleveland reported that at stake are 500 restaurants that serve breakfast and other homecooked meals.
From being a farmer in southern Ohio, Bob Evans managed to become the founder of an empire centered on food like sausage and convenience foods aside from the restaurants that offer people a taste of home. Evans' business began from sausage in 1948. The business grew and grew until it gave birth to a restaurant chain. His success serves as an example of the American dream.
With the sale of the business, Bob Evans Farms will now focus on its food division. Meanwhile, Golden Gate Capital vowed to extend its full support to help the restaurant division that it purchased flourish.
The private equity firm said the restaurant division will be able to tap more resources now that it is under the company. The restaurant division's sales have been declining for some time now, but the private equity firm is expected to help it achieve a turnaround.
Jobs & Hire previously reported another restaurant chain, McDonald's, has also seen its sales fall.