Authentic Restaurant Brands (“ARB”), a rapidly growing platform of leading regional restaurant brands and a portfolio company of Garnett Station Partners, LLC (“Garnett Station” or “GSP”), has officially announced the addition of Tavern in the Square (“Tavern”), a well-known New England polished-casual dining brand, to its expanding portfolio. This move was facilitated through the recapitalization of Broadway Hospitality Group (“BHG”), Tavern’s parent company, further strengthening ARB’s presence in the regional dining landscape.
This acquisition marks ARB’s fifth major transaction in just five years, reinforcing its aggressive growth trajectory. With the inclusion of Tavern in the Square, ARB’s platform now boasts approximately $1 billion in annual revenue and generates over $150 million in EBITDA. While the financial details of the transaction remain undisclosed, the strategic benefits are clear. Tavern in the Square is set to leverage ARB’s operational expertise, strategic capital infusion, and cutting-edge technological resources, all aimed at driving growth within its existing market and exploring opportunities for expansion into adjacent markets.
A Natural Fit for ARB’s Portfolio
Alex Macedo, Chairman and Chief Executive Officer of ARB, highlighted the strategic fit between Tavern in the Square and ARB’s portfolio. “Tavern in the Square is a beloved institution in New England, known for its outstanding food, loyal customer base, and deep local roots. It perfectly aligns with the type of brand that thrives within our portfolio of authentic restaurant brands,” said Macedo.
He elaborated on ARB’s approach, stating, “What we do best at ARB is identifying standout regional brands and equipping them with industry-leading technology, data analytics, and operational expertise. We then unlock new growth opportunities while ensuring that the brand’s integrity and unique characteristics remain intact. We are excited to partner with BHG’s CEO, Stephen DeSousa, and his team to build upon their impressive legacy.”
Strengthening Operations Without Compromising Identity
Stephen DeSousa, CEO of Broadway Hospitality Group, expressed his enthusiasm about the partnership with ARB, emphasizing the balance between growth and maintaining the brand’s core identity. “With ARB as our partner, we gain access to capital, expertise, and industry best practices that will make us even stronger,” DeSousa stated. “At the same time, we are ensuring that we do not compromise on the guest experience, which has always been our top priority. This partnership positions us to capitalize on significant opportunities and untapped market potential. I look forward to working closely with ARB’s team in this exciting new chapter.”
Tavern in the Square has established itself as a staple in New England, offering a polished yet casual dining experience with a strong focus on high-quality food and service. The brand’s ability to resonate with local communities has been instrumental in its success, making it a natural fit for ARB’s growth-focused model.
Expanding ARB’s Presence in the Restaurant Industry
ARB’s expanding portfolio now includes several well-established regional brands. In addition to Tavern in the Square, ARB owns and operates:
- Primanti Bros. Restaurant & Bar – Operating in Pennsylvania, West Virginia, Ohio, and Maryland, this brand is well-known for its iconic sandwiches and casual dining experience.
- P.J. Whelihan’s Pub & Restaurant – Based in the Greater Delaware Valley, including Philadelphia and Southern New Jersey, this brand specializes in classic pub fare with a loyal customer base.
- Mambo Seafood – Serving customers in Houston and San Antonio, Texas, Mambo Seafood is renowned for its Latin-inspired seafood offerings and vibrant atmosphere.
- Pollo Tropical – A Florida-based brand celebrated for its Caribbean-inspired menu and fast-casual dining concept.
The addition of Tavern in the Square further solidifies ARB’s commitment to acquiring and nurturing strong regional restaurant brands, preserving their unique attributes while enhancing their operational capabilities.
Leadership Transition to Drive Future Growth
In conjunction with this acquisition, ARB has also announced key leadership changes aimed at steering the company into its next phase of expansion and growth.
- Alex Macedo has been appointed as the new Chairman and Chief Executive Officer of ARB. Having previously served as Lead Operating Partner at GSP, Macedo is also a Co-Founder and the current Executive Chairman of ARB. He takes over from Felipe Athayde, the departing CEO. Macedo brings with him over two decades of marketing and operational experience within major consumer businesses, including his tenure as Global President of Tim Horton’s and President of Burger King North America.
- Jon Howie joins ARB as Chief Financial Officer. He previously served as CFO at Chuy’s Holdings, Inc. from 2011 through its acquisition by Darden Restaurants (NYSE:DRI) in Q4 2024. Howie’s extensive experience in financial leadership includes senior executive roles at Lone Star Steakhouse & Saloon, Inc. and Del Frisco’s Restaurant Group, Inc.
Strategic Direction and Industry Outlook
Matt Perelman, Managing Partner and Co-Founder of Garnett Station, praised the contributions of former CEO Felipe Athayde and expressed optimism for ARB’s future under new leadership. “Felipe has played a crucial role in establishing ARB and growing it from a concept into a billion-dollar platform. We are deeply grateful for his contributions and wish him success in his next endeavor,” said Perelman. “Looking ahead, ARB is in a strong position to build on this momentum. With Alex’s global operational expertise and Jon’s deep financial acumen, we are confident in our ability to scale the platform and achieve industry-leading performance across our brands.”
Macedo shared his enthusiasm about ARB’s trajectory, noting, “Having been a part of ARB from its inception, it is incredible to witness the remarkable growth achieved in just five years under Felipe’s leadership. As we transition into this new phase, I am eager to deepen my involvement in executing our strategy. We aim to leverage strong free cash flow to expand our platform while further strengthening regional restaurant brands within their unique markets.”
Newly appointed CFO Jon Howie echoed this sentiment, stating, “ARB’s portfolio of brands and its operational sophistication stand out in the industry. I am honored to join a team of visionary leaders at this exciting juncture. My focus will be on driving best-in-class financial performance while supporting ARB’s continued expansion.”
