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BO

Bob Evans

restaurants
PE-OWNED

Family restaurant chain known for breakfast and country cooking.

PE-OWNED

Acquired by Golden Gate Capital2017-01-01

View PE Firm Profile

What Made It Great

“

Down-home cooking and farm-fresh breakfast for the whole family.

What PE Will Likely Do

Predictions

Portion sizes for Bob Evans' signature breakfast items like their famous sausage and pancakes will be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: Golden Gate Capital's track record of aggressive cost-cutting and debt-loading in acquired companies

Lower quality, frozen ingredients will replace fresh, farm-fresh produce and meats in Bob Evans' recipes to cut costs

HIGH LIKELIHOODBased on: The restaurant industry playbook of common private equity tactics like portion reduction, ingredient substitution, and labor minimization

The variety of menu items at Bob Evans will be reduced, with a focus on only the highest-margin dishes

HIGH LIKELIHOODBased on: The negative consumer impact score associated with Golden Gate Capital's acquisitions

Staffing in Bob Evans' kitchens and dining rooms will be cut back, leading to slower service and potentially less attentive staff

HIGH LIKELIHOODBased on: The negative consumer impact score associated with Golden Gate Capital's acquisitions

The homestyle, down-home feel of Bob Evans restaurants will gradually be lost as the brand's focus shifts to maximizing profits

HIGH LIKELIHOODBased on: The negative consumer impact score associated with Golden Gate Capital's acquisitions

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minor changes to menu pricing and some ingredient substitutions begin

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Portions start getting noticeably smaller, with fewer menu options available

12-24 months

“12 to 24 months months”

Regular customers start complaining about declining food quality and longer wait times

24-36 months

“24 to 36 months months”

Numerous Bob Evans locations begin closing as brand reputation suffers

36+ months

“36+ months months”

Potential bankruptcy or sale of Bob Evans to another operator that may attempt to revive the brand

Similar Cases

Other companies that followed a similar path after PE acquisition

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Sun Capital Partners·2007

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What You Can Do

Take Action

Actions

  • Be on the lookout for changes to your favorite Bob Evans menu items, like smaller portions or lower quality ingredients

  • Consider trying new local or independent restaurants that may provide a more authentic, high-quality dining experience

  • Voice your concerns about declining quality to Bob Evans management, and consider switching to competitors if the changes become unacceptable

Alternatives

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

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"Bob Evans is now PE-owned. Here's what that means for you."