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CU

Culver's

restaurants
PE-OWNED

Midwest burger chain known for ButterBurgers, cheese curds, and frozen custard.

PE-OWNED

Acquired by Roark Capital2017-09-05

View PE Firm Profile

What Made It Great

“

Wisconsin-style ButterBurgers with fresh frozen custard and Midwest hospitality

What PE Will Likely Do

Predictions

Portion sizes of Culver's signature ButterBurgers and cheese curds are likely to be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: Roark Capital's track record of cost-cutting and operational efficiency tactics in the restaurant industry

Culver's will likely switch to cheaper, lower-quality ingredients for their fresh frozen custard, resulting in a noticeable decline in taste and creaminess

HIGH LIKELIHOODBased on: The restaurant industry playbook, which indicates a high likelihood of portion reduction, ingredient substitution, franchise squeeze, menu engineering, and labor minimization

Culver's may increase franchise fees and operational requirements for franchisees, leading to a more homogenized and less locally-tailored experience

HIGH LIKELIHOODBased on: Culver's focus on fresh, high-quality ingredients and Midwest hospitality as core to its brand identity

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

HIGH LIKELIHOODBased on: Culver's focus on fresh, high-quality ingredients and Midwest hospitality as core to its brand identity

Culver's may reduce kitchen and service staff, leading to slower service, less attentive hospitality, and potentially longer wait times for customers

HIGH LIKELIHOODBased on: Culver's focus on fresh, high-quality ingredients and Midwest hospitality as core to its brand identity

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minor changes to Culver's menu pricing and portions may begin, while operational efficiency initiatives are implemented

6-12 monthsYOU ARE HERE

“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

12-24 months

“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

24-36 months

“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

“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

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What You Can Do

Take Action

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

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

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