SC&H Capital, an investment bank specializing in M&A advisory, will be the exclusive investment banker to K&W Cafeterias, a North Carolina-based restaurant chain specializing in home-style southern food, for the sale of 18 cafeteria-style restaurants.
K&W is an 83-year-old, Winston-Salem, NC-based, family owned and operated restaurant chain with additional locations in South Carolina and Virginia.
The company operated between 28 and 35 restaurants with a consistent level of revenue until June 2020 when revenues declined significantly, primarily due to the COVID-19 pandemic. As a result, 10 locations have closed, leaving 18 locations currently operating. Unlike buffet-style restaurants, the company’s cafeteria-style service allows for employees to control delivery of food to customers, eliminating the need to significantly change day-to-day operations to comply with current COVID-19 regulations. Personnel and operational adjustments also have been made to ensure future profitability by hyper-focusing on controlling food and labor costs and implementing measures to ensure a safe environment for customers and employees.
“This is an opportunity to purchase any single or combination of 18 locations of an established and widely recognized regional restaurant chain, with a solid management and operating team in place,” Hank Waida, principal at SC&H Capital, said.