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  • Yard House

    An upscale casual dining concept.

       

    Partner Website

    www.yardhouse.com »

    CASE STUDY



    In 2007, TSG partnered with the founder and management team at Yard House Restaurants in a majority recapitalization that included a modest amount of leverage, enabling rapid and geographically-diverse unit expansion.

    When TSG exited its investment to Darden Restaurants at a business enterprise value of $585 million in 2012, sales had increased 2.9 times and EBITDA grew 3.1 times versus the year prior to TSG's investment. Additionally, new restaurants opened under TSG's stewardship generated significantly higher sales and increased ROI versus existing locations.

    BACKGROUND

    Founded in 1995, Yard House is a full-service restaurant featuring contemporary American cuisine with chef-inspired recipes and an extensive selection of draft beers in a stylish, energetic setting with a classic rock soundtrack.

    Prior to TSG's investment, Yard House had 16 restaurants across Southern California.

    TSG expanded locations, supply chain relationships and menu offerings.


    Over the course of its partnership with the founders and management team, TSG worked to drive significant value by:

    - Creating a systematic real estate site selection process to identify the most profitable locations

    - Optimizing purchasing and national supply chain relationships

    - Implementing new menu initiatives to enhance average purchases per customer and increase traffic

    - Establishing analytical reporting and budgeting processes to improve day-to-day operating management visibility

    - Utilizing local marketing rewards programs and social media to enhance guest loyalty

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