Franchisee Poised for Expansion with Backing from Major Private Equity and Global Investment Firms
Brentwood Associates, a private equity firm, and Sixth Street, a global investment firm, have invested in Far West Services, a franchisee owning more than 100 Wingstop restaurants. Brentwood and Sixth Street invested in partnership with Far West’s existing management, who will stay on at the company and also will remain significant shareholders in the business, according to a report published by Businesswire.com.
Far West, founded 20 years ago and based in Costa Mesa, Calif., operates fast-casual Wingstop restaurants in California, Nevada, Washington, Colorado and Utah. Over the years, Far West has compounded its success by growing organically, opening new restaurants and making strategic acquisitions. As it has prospered, Far West has always emphasized excellence in operation and peerless guest experiences.
Brentwood’s Fast-Casual History
Brentwood has long been involved in the fast-casual restaurant market, which is growing at a rapid pace. Straits Research said the global fast-casual market was estimated at $169.92 billion in 2022 and projected that its market value will reach a massive $407.26 billion by 2031, reflecting a compound annual growth rate of 10.2% from 2023 to 2031.
Rahul Aggarwal, a partner at Brentwood, told FranchiseWire that his firm previously had invested in a handful of high-profile fast-casual and fast-food brands. “Brentwood has also made investments in franchisors historically, including Chicken Salad Chick and Blaze Pizza,” he added.
Far West’s Future
“Our goal is to grow Far West over time, primarily through new restaurant development,” he stated in an email. “We believe there to be a great deal of growth still ahead in the Wingstop brand. The business has many attributes that we find appealing. We believe Wingstop to be a great franchisor with a long history of success. Far West’s strong management team has allowed them to be a very successful franchisee in that system.”
Aggarwal said he believes the combined resources of Brentwood, Sixth Street and Far West will deliver excellent results for all three of the partnering business entities. “Far West is a great fit with our strategy of investing in high-growth, exceptional consumer businesses. We look forward to leveraging our expertise in restaurants, foodservice and franchising to help management continue Far West’s growth into the future.”
Reaction from Far West Leaders
Far West CEO and President Jorge Ortiz will continue to lead Far West along with its founder/brand ambassador and Chairman Danny Sonenshine and others currently comprising Far West’s management team. Ortiz praised the new partnership with Brentwood and Sixth Street, saying: “They both have an in-depth understanding of our business, and we look forward to the experience, strategic input and value-added resources that they bring to the table.”
Sonenshine said Far West’s management looks forward to the continued growth of its Wingstop holdings. The franchise “is as strong as it’s ever been, and we look forward to working with our new partners to continue to build this great brand,” he said.
About Brentwood and Sixth Street
Los Angeles-based Brentwood Associates is a private equity investment firm that acquires stakes in middle-market growth-oriented consumer and business services companies. Since 1984, Brentwood’s private equity team has invested over $7 billion in more than 50 portfolio companies. Through the decades, Brentwood has a record of bringing solid experience in brand-building to entrepreneurs and senior management teams.
Sixth Street, which invests internationally, has in excess of $70 billion in assets under management and committed capital. It supports companies across all stages of growth. Sixth Street has more than 500 team members, including more than 200 investment professionals operating globally.
In a news release, Kayvan Heravi, managing director at Sixth Street, said, “Far West’s strong leadership team, operational expertise and premier position within a best-in-class franchise system all align with what we consider core attributes for successfully growing consumer businesses.”