Famous Dave’s is a popular barbeque restaurant chain that was founded in 1994 by Dave Anderson. Over the years, Famous Dave’s has undergone some major changes in ownership and mergers. In the opening paragraphs, I will provide a quick overview of Famous Dave’s history and the companies it has merged with over the years.
Famous Dave’s was founded by Dave Anderson in Hayward, Wisconsin in 1994. The first restaurant opened up in Minneapolis, Minnesota. In the beginning, Famous Dave’s was focused on a Northwoods and lodge theme for its barbecue restaurants. Over the next decade, Famous Dave’s expanded by opening up franchise locations around the United States.
In 2002, Famous Dave’s merged with Minnetonka Restaurant Group. Minnetonka Restaurant Group was known for creating and operating restaurant chains like Bakers Square and Vescio’s Italian restaurants. This merger provided additional management and operational expertise to help grow the Famous Dave’s brand.
A few years later in 2008, Famous Dave’s was acquired by a company called Famous Dave’s of America, Inc. This new company was focused on franchising and expanding the Famous Dave’s brand. They opened up additional franchise locations and grew the restaurant chain over the next several years.
Merger with BBQ Holdings
In September 2019, Famous Dave’s of America announced that they would be merging with BBQ Holdings. BBQ Holdings is a company that was also operating several barbeque restaurant chains including Granite City Food & Brewery and Real Urban Barbecue.
This merger resulted in one of the largest barbecue franchise companies in the country. BBQ Holdings now owns, operates, and franchises over 200 restaurants across several brands. The combined company is led by Jeff Crivello who serves as the CEO.
Here is an overview of some key details on the Famous Dave’s and BBQ Holdings merger:
Key Merger Details
- The merger was announced in September 2019 and closed in November 2019.
- BBQ Holdings acquired Famous Dave’s of America in an all-stock transaction.
- BBQ Holdings changed its name to BBQ Holdings, Inc. after the merger.
- Famous Dave’s of America shareholders received 1 share of BBQ Holdings common stock for every 1 share of Famous Dave’s stock they owned.
- The combined company has a portfolio of over 200 locations across several restaurant brands.
- Famous Dave’s former CEO Jeff Crivello became CEO of the merged company.
- Famous Dave’s founder Dave Anderson serves on the Board of Directors of BBQ Holdings.
This strategic merger allowed the two companies to join forces to expand their barbecue concepts and leverage shared operational and franchising expertise.
BBQ Holdings Restaurant Brands
After merging with Famous Dave’s, BBQ Holdings now owns and operates several different restaurant chains and brands. Here is an overview of the portfolio of restaurants that are part of BBQ Holdings:
Famous Dave’s
Famous Dave’s is the largest barbecue concept in the BBQ Holdings portfolio. As of October 2022, there were 127 Famous Dave’s locations operating across 31 states, the Bahamas, Canada, and United Arab Emirates. Famous Dave’s serves authentic barbecue dishes and signature menu items like Dave’s Famous St. Louis-Style Ribs, Texas Beef Brisket, Georgia Chopped Pork, and Country-Roasted Chicken. Popular side dishes include corn bread, potato salad, mac and cheese, and wilted spinach.
Granite City Food & Brewery
Granite City Food & Brewery operates casual dining restaurants that offer American cuisine and on-site craft brews. They have locations across the Midwest, and also have a location in National Harbor, Maryland. Granite City’s menu highlights their signature brewed beers along with dishes like wood-fired steaks, bbq ribs, and seafood.
Real Urban Barbecue
Real Urban Barbecue offers fast-casual dining BBQ restaurants located in Minneapolis, Minnesota. Their menu focuses on smoked meats like brisket, pulled pork, turkey, ribs, and sausage. Sides like mac and cheese, coleslaw, and beans are also available.
Village Inn
Village Inn is a casual dining, family-style restaurant chain. Most of their locations are in Colorado. Village Inn is open for breakfast, lunch, and dinner and is known for their pies and specialty pancakes.
Tahoe Joe’s Famous Steakhouse
Tahoe Joe’s operates steakhouse restaurants located in the western United States. This brand is known for its expansive salad bar and wide selection of steak offerings.
Clark Crew BBQ
Clark Crew BBQ is a fast-casual chain in Oklahoma that serves smoked brisket sandwiches, pulled pork, hot links, ribs, and classic sides like baked beans and coleslaw.
| Brand | # of Locations | Location | Cuisine |
|---|---|---|---|
| Famous Dave’s | 127 | United States, Bahamas, Canada, United Arab Emirates | Barbecue |
| Granite City Food & Brewery | 26 | Midwest and Maryland | American cuisine, craft beers |
| Real Urban Barbecue | 5 | Minneapolis, Minnesota | Barbecue |
| Village Inn | 25 | Colorado | American cuisine, specialty pancakes and pies |
| Tahoe Joe’s Famous Steakhouse | 5 | Western United States | Steakhouse |
| Clark Crew BBQ | 4 | Oklahoma | Barbecue |
As shown in the table above, BBQ Holdings now operates over 190 restaurant locations across 6 brands ranging from barbecue concepts to steakhouses and breweries.
Impact of the Merger
The merger between Famous Dave’s and BBQ Holdings created one of the largest barbecue-focused restaurant franchises in the country. Here are some of the key impacts of this merger:
Expanded Footprint
BBQ Holdings was able to expand its geographic footprint by merging with Famous Dave’s. Famous Dave’s had a presence across 31 different states, while BBQ Holdings concepts like Granite City were concentrated in the Midwest. The combined company has broader reach across the United States.
New Leadership
Jeff Crivello took over as CEO of the combined company, bringing years of franchise experience from working with concepts like Applebee’s. Founder Dave Anderson also joined the Board of Directors, providing insight into the Famous Dave’s brand.
More Franchising Opportunities
BBQ Holdings can leverage its operational expertise to continue expanding franchising efforts for both Famous Dave’s and its other concepts. This can provide a steady revenue stream from franchise fees and royalties.
Cost Savings
The merger leads to synergies and cost savings in areas like purchasing, distribution, and overhead costs. Operating at a larger scale can lead to improved profit margins.
Stronger Financial Position
BBQ Holdings had annual revenues around $153 million before the merger. Famous Dave’s had annual revenues of approximately $88 million. Combining together provides a stronger financial position and access to capital.
Conclusion
In summary, Famous Dave’s has merged with a few different companies over the years as it has evolved from a regional barbecue chain to a large franchise business. Most recently in 2019, Famous Dave’s merged with BBQ Holdings. This created one of the largest barbecue restaurant franchise companies in the country with over 200 locations and 6 brands.
The merger gave BBQ Holdings an expanded geographic presence, new leadership under a CEO with franchise experience, the opportunity for more franchising, cost synergies, and a stronger financial position. It continues Famous Dave’s history of strategic mergers to support growth into one of the most well-known barbecue chains. Going forward, BBQ Holdings is well-positioned to continue expanding all of its restaurant brands across the United States.