Culver's
Midwest burger chain known for ButterBurgers, cheese curds, and frozen custard.
PE-OWNED
Acquired by Roark Capital2017-09-05
What Made It Great
Wisconsin-style ButterBurgers with fresh frozen custard and Midwest hospitality
What PE Will Likely Do
Portion sizes of Culver's signature ButterBurgers and cheese curds are likely to be reduced while prices remain the same or increase
Culver's will likely switch to cheaper, lower-quality ingredients for their fresh frozen custard, resulting in a noticeable decline in taste and creaminess
Culver's may increase franchise fees and operational requirements for franchisees, leading to a more homogenized and less locally-tailored experience
The variety of Culver's menu items will likely be reduced, with a focus on high-margin items like ButterBurgers and fries rather than the wider selection of burgers, sandwiches, and sides
Culver's may reduce kitchen and service staff, leading to slower service, less attentive hospitality, and potentially longer wait times for customers
Expected Timeline
“0 to 6 months months”
Minor changes to Culver's menu pricing and portions may begin, while operational efficiency initiatives are implemented
“6 to 12 months months”
Customers will likely notice reduced portion sizes for ButterBurgers and cheese curds, as well as a slight decline in the quality and creaminess of the frozen custard
“12 to 24 months months”
Culver's regular customers will start to notice significant quality declines, with less menu variety, slower service, and a more generic Midwest hospitality experience
“24 to 36 months months”
Culver's franchise locations may begin closing at an accelerated rate as the brand's reputation for quality and service is damaged, and the company struggles to maintain its loyal customer base
“36+ months months”
Culver's may face the risk of bankruptcy or be sold to another operator, unable to maintain its original Wisconsin-style ButterBurger and frozen custard experience
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Customers who value Culver's signature ButterBurgers, cheese curds, and frozen custard should visit their local Culver's locations frequently and provide feedback to the company about any noticeable changes in portion sizes or ingredient quality
Customers should be prepared for a gradual decline in the overall Culver's experience, and consider seeking out locally-owned or independent burger and custard alternatives if the brand's quality and hospitality suffer
Alternatives
Publicly traded restaurant group
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