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Shining a light on PE ownership.

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LO

Long John Silver's

restaurants
PE-OWNED

Fast-food seafood chain specializing in fried fish, shrimp, and chicken.

PE-OWNED

Acquired by Centerbridge Partners2011-09-14

View PE Firm Profile

What Made It Great

“

Quick-service seafood with batter-dipped fish and hush puppies

What PE Will Likely Do

Predictions

Portion sizes of Long John Silver's signature fried fish, shrimp, and chicken dishes will be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: Centerbridge Partners' history of implementing cost-cutting measures like portion reduction and ingredient substitution in their portfolio companies

Lower quality, cheaper ingredients will be substituted for the original high-quality batter, breading, and seafood in Long John Silver's menu items

HIGH LIKELIHOODBased on: The industry playbook for private equity tactics in the restaurant sector, which shows a high frequency of the specific changes predicted for Long John Silver's

The variety of menu options at Long John Silver's will be reduced, with the focus shifting to only the most profitable, high-margin items

HIGH LIKELIHOODBased on: The lack of any recorded failures or major issues with Centerbridge Partners' previous acquisitions, suggesting they are experienced in executing these strategies

Staffing levels in Long John Silver's kitchens and service counters will be minimized, leading to longer wait times and less attentive service for customers

HIGH LIKELIHOODBased on: The lack of any recorded failures or major issues with Centerbridge Partners' previous acquisitions, suggesting they are experienced in executing these strategies

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minor changes to Long John Silver's menu items and pricing begin, portions start to shrink slightly

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Noticeable reduction in portion sizes and quality of Long John Silver's signature dishes like fried fish and hush puppies

12-24 months

“12 to 24 months months”

Regular Long John Silver's customers start noticing a significant decline in the taste and quality of their favorite menu items as cheaper ingredients are used

24-36 months

“24 to 36 months months”

Stores begin closing at an accelerated rate as Long John Silver's brand reputation is damaged by the quality decline, and the company may struggle financially

Similar Cases

Other companies that followed a similar path after PE acquisition

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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

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Logan's Roadhouse

KKR·2006

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Operating

Friendly's

Sun Capital Partners·2007

See full case study

What You Can Do

Take Action

Actions

  • Customers of Long John Silver's should be prepared for a gradual decline in the quality and taste of their favorite menu items over the next 12-24 months

  • Consumers who value the original high-quality fried fish, shrimp, and hush puppies at Long John Silver's should consider seeking out alternative seafood options in their area

  • Long John Silver's customers should be vigilant in providing feedback to the company and on review platforms if they notice significant changes to the food quality and portion sizes

Alternatives

Darden Restaurants (Olive Garden, LongHorn)SAFE

Publicly traded restaurant group

Local independent restaurantsSAFE

Support local businesses in your area

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"Long John Silver's is now PE-owned. Here's what that means for you."