SPB Hospitality, the parent company of Krystal, has offloaded Old Chicago Pizza and Taproom.
SPB Hospitality Sells Old Chicago Pizza + Taproom Chain
SPB Hospitality, the owner of Krystal, Logan's Roadhouse, and six other restaurant brands, has sold the 60-unit pizza pub chain Old Chicago. The sale was confirmed by the CEO of SPB Hospitality, Josh Kern, on Friday.
Old Chicago has been a part of SPB Hospitality for about five years, having been acquired in 2020 as part of the purchase of CraftWorks Holdings for $93 million. However, the buyer and sale price for Old Chicago in the latest transaction were not disclosed.
The sale is part of SPB Hospitality's focus on its core brands. Josh Kern wrote that the brands SPB Hospitality will focus on are distinctive, experience-driven, and built for growth. The brands that SPB Hospitality will concentrate on include Krystal, Logan's Roadhouse, J. Alexander's, Stoney River, and two Jose Garces concepts (Amada and Village Whiskey).
Old Chicago has been struggling for years, particularly in a challenging market for full-service restaurants specializing in pizza or beer. According to Technomic data, Old Chicago has closed 50 locations from 2019 to 2024. Last year, systemwide sales for Old Chicago declined more than 16% to $155.4 million.
The new ownership group for Old Chicago plans to invest in growing the brand. The specific details about the new ownership group were not disclosed.
Joe Guszkowski, a senior editor with Restaurant Business covering technology and casual-dining chains, reported the news about the sale. With the sale of Old Chicago, SPB Hospitality is left with eight concepts totaling more than 450 locations. Old Chicago is now the only remaining piece from the CraftWorks deal, as SPB sold five brewery concepts from the deal to Kelly Companies in December 2024.
The sale of Old Chicago leaves Logan's Roadhouse as the remaining piece from the CraftWorks deal for SPB Hospitality. Old Chicago has been a challenging asset for SPB, and the decision to sell it signals a strategic shift away from managing the brand. No public announcements have outlined what the new ownership will do with the brand or any planned changes to its operations or expansion.
In conclusion, SPB Hospitality has sold the Old Chicago Pizza + Taproom chain as part of its focus on its core business operations. The new ownership group plans to invest in growing the brand, but specific details about the new ownership group, the sale price, and future plans for Old Chicago have not been disclosed.
Finance and retail sectors could potentially express interest in Old Chicago Pizza + Taproom chain following its sale, given the brand's extensive network of 60 locations. The new business owners are likely to make investments to augment the pizza pub chain's growth strategy, based on their intent to develop the brand further.
