Foodtastic Inc. has acquired L’Gros Luxe and Rotisserie de Joliette, and is expanding into the Toronto restaurant market with the opening of its newest Big Rig Kitchen and Brewery.
“L’Gros Luxe is a local Quebec brand and we are excited to welcome it into the Foodtastic family. We are happy to be able to help this great concept through this difficult time, which has affected many restaurants and brands. L’Gros Luxe has been a Quebec favourite for several years, serving delicious comfort food and great cocktails,” said Foodtastic president and CEO Peter Mammas. “Our mission is to help existing franchisees with our marketing, operations, and buying power. L’Gros Luxe is the perfect conversion concept for many restaurants, and we are already looking at several opportunities in the greater Montreal area, as well as reopening several locations that closed due to COVID-19. This business venture is consistent with our strategy of acquiring quality brands with growth potential that complement our existing brand portfolio.”
An important part of the transaction was the retention of Alex Bastide, the creator of L’Gros Luxe, who will retain an equity stake in the concept.
“I’m thrilled to continue to be a part of L’Gros Luxe, and its exciting future,” said Bastide. “With the financial support from Foodtastic we can now expand our operations throughout Quebec.”
“We are also very happy to acquire Rotisserie Joliette, the first rotisserie founded in 1960 by the Benny family. The Au Coq and Rotisserie Benny brands continue to expand throughout the province, and both are now part of the Foodtastic family,” added Mammas.
The restaurant industry is traversing a very difficult period caused by COVID-19. Foodtastic recognized franchisees would need all the support and sales they could get, and quickly transitioned brands to take-out and delivery. This immediate action, coupled with government programs, helped many locations to remain open through the early months and minimize their losses. Foodtastic also eliminated franchise fees while dining rooms were closed at all their sit-down locations.
“Deferring royalties, like many other chains did, would have only pushed the financial burden to our franchisees down the road, so we stepped up by completely forgiving royalties for three months,” Mammas said.
Although the restaurant industry is facing a very uncertain future, Foodtastic is continuing its pursuit to expand its current restaurant system. The company has opened six new locations in the last few weeks creating more than 200 jobs in Quebec City, Montreal, Gatineau, and Toronto.
“We are pleased with the work our entire team has done which has allowed us to continue opening new locations. Currently, we are focused on growing our Rotisserie Benny and Au Coq brands, and will move forward with the opening of 12 new locations over the next year,” Mammas explained. “We realize the next several months will be challenging for our dining room concepts but believe with the continued help from the government, landlords, and suppliers we will be able to support our franchisees through these difficult times.”