LRI Holdings earns a lot of peanuts even though it gives them away for free. The company operates Logan's Roadhouse, a chain of casual restaurants that serve generous-sized plates of grilled steaks, chicken, barbecued ribs, and hamburgers. The chain prides itself on its affordable prices (the average bill is less than $15) while also offering free, all-you-can-eat buckets of shelled peanuts and rolls. LRI Holdings has 185 company-owned locations of Logan's Roadhouse across 20 states and 26 franchises in four states. LRI Holdings was formed in 2006 by a private investor group. The company agreed to be acquired by private equity firm Kelso & Co. in 2010.
The acquisition by Kelso & Co. means LRI Holdings will shelve its plans to go public for a second time. It was a publicly traded company from 1995 to 1999 until it was acquired by Cracker Barrel. The investor group made up of Bruckmann, Rosser, Sherrill & Co., Canyon Capital Advisers, and Black Canyon Capital formed LRI Holdings in 2006 and bought Logan's Roadhouse that year for $486 million.
The seasoned restaurant investors revamped the Logan's Roadhouse concept, reducing the square footage by 20% and changing materials, layout, operational and aesthetic elements, and controlling food costs. The restaurants buy all their beef from JBS Swift, all their chicken from Koch Foods, and butchers the meat in-house. Even during the economic recession, Logan's Roadhouse suffered a slight loss and only closed one restaurant in 2009.
LRI Holdings will hope to use the proceeds from its sale to Kelso & Co. to pay down debt and expand. The company plans to open 15 new restaurants in 2011 and aims for a 10% growth (at least 20 new restaurants) every subsequent year. – less
69 salaries reported
$15,829 per year
8 salaries reported
$24,304 per year
55 salaries reported
$24,818 per year