BJ’s Restaurants announced Thursday that it will receive strategic assistance from Panera founder Ron Shaich.
The casual-dining chain signed a cooperation agreement with Shaich’s Act III Holdings. As part of the deal, the private equity firm will make its personnel available to support the chain in areas like culinary, supply chain, marketing, design, technology, and recruiting.
Act III agreed to restrictions on acquiring additional shares, initiating proxy contests, or proposing extraordinary transactions, until May 4, 2027. Additionally, it agreed to vote in line with the board of director’s recommendations, with some exceptions.
Act III has been a shareholder with BJ’s since 2020 when it invested $70 million into the brand.
“We are pleased to announce this agreement with Act III and its Managing Partner and Chief Executive Officer, Ron Shaich, who are well regarded for their restaurant industry acumen and results,” BJ’s chair Lea Anne S. Ottinger said in a statement. “We are confident they can support the Board, Brad Richmond, the Company’s Interim Chief Executive Officer, and Lyle Tick, the Company’s President and Chief Concept Officer, as we develop and execute against BJ’s vision and strategic plan.”
In the past year, BJ’s has faced pressure from investors to implement a turnaround strategy. In March 2024, the chain reached a cooperation agreement with longtime shareholder PW Partners, allowing the firm to access restaurants, records, and documents so it could address the chain’s cost structure and recommend reduction strategies. Earlier, activist investor Fund 1 Investments said in an SEC filing that BJ’s has “inadequately addressed” its cost structure. It suggested a possible sale, but BJ’s resolved the conflict by appointing Richmond, a former Darden CFO, to its board of directors.
Later in August, former CEO Greg Levin stepped down and Richmond was named interim CEO. Tick was also brought on as president and chief concept officer. Levin spent 19 years at BJ’s, serving as CFO for 15 years and as CEO since September 2021.
BJ’s same-store sales rose 1.7 percent in Q3, fueled by a 1.7 percent rise in traffic. That marked the chain’s best traffic performance since 2018, outside of the immediate post-pandemic recovery period. Restaurant-level margins fell 20 basis points to 11.7 percent, below the mid-12 percent guidance. Executives attributed the margin shrinkage primarily to the Pizookie Pass program—a promotion that hurt sales and profitability—rising supply chain costs, and less-than-expected labor efficiency.
Comps rose 0.6 percent in Q2 and declined 1.7 percent in Q1.
The new BJ’s leadership team wants to reaffirm its uniqueness as a national brewhouse, boost operations by removing complexity, and bring a more structured and disciplined approach to its financial strategy. The company operates more than 215 restaurants in 31 states.
Shaich said in a news release that he supports the brand’s current direction.
“We are excited to enter into this Cooperation Agreement with BJ’s Restaurants, Inc.,” Shaich said in a statement. “We strongly support the actions that BJ’s Board of Directors has taken, including the appointment of new leadership to guide the Company through its next chapter of growth and value creation. After engaging with BJ’s Board and management, we are confident in the discipline and financial expertise that Mr. Richmond is bringing to the Company and impressed by Mr. Tick’s vision and strategy for unlocking the full potential of the BJ’s brand. We fully support their focus and ambition and are excited to reaffirm our commitment to the Company. We look forward to collaborating with BJ’s to help them exceed their goals.”
