In 2011, Chanticleer Holdings, a business development company that had converted to an operating holding company, together with a group of major private equity investors, acquired Hooters of America (HOA), the largest Hooters franchisee in the United States. Today HOA is the franchisor and operator of over 450 restaurants, covering 44 states and 28 foreign countries. Mike Pruitt, Chanticleer CEO, is also a member of the HOA Board of Directors. It was a friendship between Mike Pruitt and the founder of HOA, Robert Brooks, which ultimately led to Chanticleer’s interest in the company.
In addition to its ownership stake in HOA, Chanticleer acquired the franchise rights to develop Hooters restaurants in South Africa, and has formed a new management company there. The country’s black middle class has grown by 30% in just over a year, from 2-million to 2.6-million. With a total population of roughly 49 million people, South Africa’s expected market saturation is expected to be 20 restaurants, with Chanticleer funding them 100%.
Chanticleer is also in discussions with the current franchisee in Australia to create a joint venture for future Hooters restaurants, with Chanticleer forming an Australian subsidiary. Australia has a total population of over 22 million, with an expected market saturation of 15 restaurants.
Other emerging markets for Hooters are Brazil and Europe, including Eastern Europe which has an affluent and middle class equal to that of China. Since 2003, over 29 million Brazilians have joined the middle class. In 2010, the percentage of households in Brazil with annual disposable incomes of $5,000 or more was greater than that in China and India.
For more information, see the company website at www.ChanticleerHoldings.com
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