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LO

Logan's Roadhouse

restaurants
PE-OWNED

Roadhouse-style casual dining steakhouse.

PE-OWNED

Acquired by KKR2006-09-01

View PE Firm Profile

What Made It Great

“

Mesquite-grilled steaks in a rustic roadhouse atmosphere.

What PE Will Likely Do

Predictions

Portion sizes of steaks and other menu items will likely be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: KKR's track record of cost-cutting measures and tactics like portion reduction and ingredient substitution in other restaurant acquisitions

Cheaper, lower quality ingredients will be substituted for the original mesquite-grilled steaks and other signature menu items

HIGH LIKELIHOODBased on: The common PE playbook for the restaurant industry, which aligns with the specific changes expected at Logan's Roadhouse

The variety of menu options will be reduced as Logan's focuses on higher-margin dishes

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their actions tend to be harmful to customers

Staffing levels in the kitchen and service staff will be cut, leading to slower service and potentially less attentive customer service

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their actions tend to be harmful to customers

Franchise fees and requirements for franchisees will likely increase, putting financial strain on franchised locations

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their actions tend to be harmful to customers

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minor changes to menu pricing and portions begin, with some ingredient substitutions

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Noticeable reduction in steak portion sizes and quality, with some menu items removed

12-24 months

“12 to 24 months months”

Regular customers start noticing significant decline in food quality and portion sizes, as well as slower service

24-36 months

“24 to 36 months months”

Franchised locations begin to close as the brand's reputation is damaged, with company-owned locations also seeing accelerated closures

36+ months

“36+ months months”

Potential bankruptcy or sale of Logan's Roadhouse to another operator

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

TGI Friday's

Sentinel Capital Partners·2014

See full case study
Operating

P.F. Chang's

Centerbridge Partners·2019

See full case study
Operating

Outback Steakhouse

Bain Capital·2007

See full case study
Operating

Friendly's

Sun Capital Partners·2007

See full case study
Operating

Bob Evans

Golden Gate Capital·2017

See full case study

What You Can Do

Take Action

Actions

  • Consumers should be prepared for a gradual decline in the quality and portion sizes of the mesquite-grilled steaks and other signature dishes at Logan's Roadhouse

  • Customers should consider dining at Logan's Roadhouse in the near-term, as the long-term outlook for the brand's quality and customer experience is poor

  • Consumers may want to seek out alternative steakhouse options that prioritize quality and customer experience over cost-cutting measures

Alternatives

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

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