The UK branch of Kout Food Group Restaurants is acquiring for a reported £15m the Little Chef outlets currently owned and run by Rcapital.
It is understood that Kout plans to revitalise the brand, which will involve retaining Fat Charlie, its iconic and well-known mascot.
Kout runs over 40 Burger King and KFC outlets in the UK as well as Maison Blanc, the French patisserie venture started by celebrity chef Raymond Blanc. Its Kuwait operations include exclusive franchises for US brands Burger King, Pizza Hut, Applebee’s and Taco Bell.
Rcapital, the turnaround specialists, paid in the order of £9 million for Little Chef back in 2007, but had perhaps under-estimated the switch by motorists from the A-roads on which Little Chefs are located, with motorways now dominant.
Rcapital worked hard to revive the business, including employing Heston Blumenthal to work on revitalising the menu, and did succeed in returning Little Chef to profit.
However, the decision to sell was taken earlier this year, reportedly attracting interest from fast food rivals as well as coffee shop chains, none of whom would have retained the brand which still operates out of over 80 outlets.
The fast food sector will watch with great interest to see if Kout can find the right formula to return Little Chef to success and expansion.