Wagamama on Thursday announced it’s taken full control of its U.S. operations after acquiring the remaining 80 percent of a joint venture partnership with Conversion Venture Capital.
The pan-Asian brand, which opened in 1992 in London and is one of the leading casual brands in the U.K., struck the joint venture with CVC2 in 2020. The group currently operates eight sites in the U.S. across New York City, Boston, Tampa, and Dallas, as well as a new location that launched in Arlington, Virginia, in early August.
U.S. operators Robert Cornog and Richard Flaherty owned the 80 percent, while The Restaurant Group held the other 20. Cornog and Flaherty also direct Punch Bowl Social, a once-rising eatertainment working to restart growth.
Wagamama landed on the partnership after a six-month review that extended from 2019 into early 2020. At that point, the overall brand had more than 200 locations in 27 countries.
Last October, the owner of Wagamama—the aforementioned The Restaurant Group—was sold to Apollo Global Management for a reported $623 million. U.S.-based Apollo previously owned fast casual QDOBA for roughly five years. In 2022 it sold the chain to Butterfly, the owner of Modern Market Eatery and Lemonade.
The Restaurant Group originally bought Wagamama in 2018. At the time, it had 133 directly operated restaurants in the U.K., five directly operated units in the U.S., and 58 franchised restaurants across several countries.
When it switched hands this latest go-around, there were hundreds of restaurants across the world in the U.K., Austria, Bahrain, Belgium, Cyprus, Denmark, France, Gibraltar, Greece, Ireland, Italy, Malta, the Netherlands, Northern Ireland, Norway, Oman, Qatar, Saudi Arabia, Slovakia, Spain, Sweden, and Turkey.
Bloomberg reported The Restaurant Group made the 2023 move after activist shareholders expressed concerns about the company’s stock price and performance. The group’s stock had fallen more than 90 percent from its highest point in 2015. It also suffered during the pandemic and faced challenges from activist investors, including Hong Kong-based Oasis Management and Irenic Capital Management, according to the publication. In September, The Restaurant Group chairman Ken Hanna stepped down after pressure from investors. He took the post in January 2022.
In addition to Wagamama, the company oversees 400-plus restaurants and pubs in the U.K.
Thursday’s announcement gives the U.S. operations over to The Restaurant Group, which is 100 percent owned by Apollo. The “The U.S. is an exciting growth market for Wagamama and we are looking forward to expanding our popular concept into new locations across the country,” CEO Thomas Heier said in a statement. “We want to thank the CVC2 group for setting the foundations for growth and are confident that our innovative menu and unique culture will resonate with customers as we expand the offer in the United States.”
The company said the CVC2 experience was “invaluable” as the brand “adapted positioning in the US market, with good progress made in spite of the challenges brought about by COVID.”
“With its substantial and diverse population, together with a culture that embraces dining out, the United States is a natural fit for Wagamama. It benefits from familiarity with Asian cuisine and consumer demographics and real-estate opportunities similar to those that underpin the success of Wagamama in the UK.,” the company said.
Inspired by fast-paced Japanese ramen bars and a celebration of Asian food, the brand offers fresh ingredients where every bowl and plate are willed and served as soon as ready.
