Fazoli's
Fast casual Italian restaurant chain serving pasta, breadsticks, and Italian favorites.
PE-OWNED
Acquired by Sentinel Capital Partners2008-04-01
What Made It Great
Fast casual Italian dining with unlimited breadsticks and affordable family meals
What PE Will Likely Do
Portion sizes for pasta dishes, entrees, and side items like breadsticks will be reduced while prices remain the same or increase
Ingredients like cheese, meat, and sauces will be substituted with cheaper, lower-quality alternatives
Menu variety will be reduced as Fazoli's focuses on high-margin items like desserts and beverages
Staffing in the kitchen and dining room will be cut, leading to slower service and less attentive customer care
Franchisee requirements and fees will increase, leading some locations to close or change ownership
Expected Timeline
“0 to 6 months months”
Minor changes to menu pricing and portion sizes begin, with some lower-quality ingredients introduced
“6 to 12 months months”
Noticeable reduction in pasta, meat, and cheese portions; more frozen/pre-made ingredients used
“12 to 24 months months”
Significant quality decline across the menu as long-time customers start to notice the changes
“24 to 36 months months”
Accelerated store closures as brand reputation suffers; remaining locations struggle to retain customers
“36+ months months”
Potential bankruptcy or sale of Fazoli's to another operator, further eroding the original brand identity
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Enjoy Fazoli's while you can, as the quality and value are likely to diminish substantially in the coming years under private equity ownership
Consider supporting local, independent Italian restaurants that may provide a better long-term dining experience
Voice your concerns about quality changes directly to Fazoli's management and corporate owners
Alternatives
Publicly traded restaurant group
Support local businesses in your area