Authentic Restaurant Brands Expands with Tavern in the Square Acquisition, Strengthens Leadership to Drive Growth
Authentic Restaurant Brands (“ARB”), a premier platform of regional restaurant brands and a portfolio company of Garnett Station Partners, LLC (“Garnett Station” or “GSP”), has announced a major expansion with the addition of Tavern in the Square (“Tavern”). The acquisition was made through a recapitalization of Broadway Hospitality Group (“BHG”), the parent company of Tavern, marking ARB’s fifth acquisition in five years. This latest move positions ARB as a dominant force in the regional dining industry, with total annual revenue approaching $1 billion and EBITDA surpassing $150 million. While financial details of the transaction remain undisclosed, the acquisition signifies ARB’s commitment to identifying and fostering standout regional Authentic restaurant brands with strong customer loyalty and local influence.
Strategic Growth and Expansion
The Authentic integration of Tavern in the Square into ARB’s portfolio underscores the company’s strategic vision of leveraging industry-leading technology, operational expertise, and data-driven decision-making to expand regional brands while maintaining their unique identity. Tavern in the Square, a polished-casual dining Authentic brand deeply rooted in New England, is renowned for its high-quality food, strong guest loyalty, and vibrant atmosphere. With ARB’s support, Tavern is poised to enhance its growth trajectory in core markets while exploring opportunities in adjacent regions.
“Authentic Tavern in the Square is a New England institution renowned for its exceptional food, guest loyalty, and deep local roots. It’s exactly the type of brand that aligns with and will thrive within our portfolio of authentic restaurant brands,” said Alex Macedo, Chairman and Chief Executive Officer of ARB. “This is what ARB does best. We identify standout, regional Authentic brands, equip them with access to industry-leading technology, data analytics, and operational expertise, and unlock new growth levers, all while preserving the integrity and defining characteristics of the brand. We look forward to partnering with BHG’s CEO Stephen DeSousa and his team to build on their impressive track record.”
Commitment to Brand Integrity and Guest Experience
Authentic Stephen DeSousa, CEO of Broadway Hospitality Group, echoed Macedo’s sentiments, emphasizing the benefits of ARB’s operational and financial resources while maintaining the Authentic brand’s commitment to guest experience. “With ARB as our partner, we gain the best of all worlds – access to the capital, expertise, and best practices to make us even better – without sacrificing guest experience, so we can continue delivering exceptional local dining experiences. I am thrilled to be working with ARB’s team to capitalize on the significant opportunities and white space ahead,” DeSousa stated.
ARB’s acquisition model is centered on preserving the essence of the Authentic brands it acquires while providing them with the necessary tools to optimize operations, improve efficiency, and expand strategically. This approach has proven successful across its growing portfolio, which now includes regional “fortress brands” such as:
- Primanti Bros. Restaurant & Bar – Operating in Pennsylvania, West Virginia, Ohio, and Maryland, this iconic brand is known for its signature sandwiches and casual dining experience.
- P.J. Whelihan’s Pub & Restaurant – A staple in the Greater Delaware Valley, including Philadelphia and Southern New Jersey, this brand specializes in a sports bar atmosphere with a focus on wings and beer.
- Mambo Seafood – Serving Houston and San Antonio, Texas, this concept offers a unique seafood dining experience with a Latin influence.
- Pollo Tropical – A well-established Authentic brand in Florida, offering Caribbean-inspired fast-casual dining.
The addition of Tavern in the Square further diversifies ARB’s holdings and reinforces its presence in the polished-casual dining segment.
Leadership Transitions to Support Continued Growth
In conjunction with the acquisition, ARB has announced a leadership transition designed to enhance its ability to scale effectively. Alex Macedo, who previously served as Lead Operating Partner at GSP and is a Co-Founder and Executive Chairman of ARB, has been appointed Chairman and Chief Executive Officer. He replaces departing CEO Felipe Athayde, who played a crucial role in ARB’s establishment and growth.
Macedo brings over two decades of experience in marketing and operations within the restaurant industry, having held executive leadership roles at some of the world’s most recognized brands. His tenure includes serving as Global President of Tim Horton’s and President of Burger King North America. His deep understanding of consumer trends, brand management, and operational efficiency will be instrumental in driving ARB’s next phase of expansion.
Jon Howie has also been appointed as Chief Financial Officer of ARB. Howie joins from Chuy’s Holdings, Inc., where he served as CFO from 2011 through its sale to Darden in Q4 2024. He was also a member of Chuy’s board of directors. His extensive experience spans over three decades in the restaurant industry, including senior executive roles at Lone Star Steakhouse & Saloon, Inc., and Del Frisco’s Restaurant Group, Inc.
Garnett Station’s Vision for ARB’s Future
Matt Perelman, Managing Partner and Co-Founder of Garnett Station, praised the leadership changes and emphasized ARB’s strong growth trajectory. “Felipe has played a pivotal role in establishing and growing ARB from concept to billion-dollar platform. We are grateful for his significant contributions and wish him every success in his next endeavor. As we look ahead, ARB is primed to build on this momentum, benefiting from Alex’s global operational expertise and Jon’s public company experience as we continue to scale the platform and drive industry-leading performance across our brands,” Perelman said.
Macedo acknowledged the foundation laid by his predecessor and expressed excitement about leading ARB into its next growth phase. “Having been a part of ARB since the beginning, it’s amazing to see the rapid growth the team has accomplished in just five years under Felipe’s leadership. As we enter this next phase, I’m excited to deepen my role in advancing our strategy as we continue to leverage strong free cash flow to scale the platform while supercharging leading regional restaurant concepts within their distinct markets.”
Howie also shared his enthusiasm for joining the ARB leadership team, emphasizing the potential for financial growth and operational excellence. “The caliber of ARB’s brands and the sophistication of the platform stands out in the industry today, and I am honored to join a team of visionary operators at this exciting time. I look forward to supporting our brands to deliver best-in-class financial performance while supporting the next chapter of growth for ARB.”
The Future of ARB and Tavern in the Square
The acquisition of Tavern in the Square marks a significant milestone for ARB, solidifying its position as a leader in regional restaurant operations. As the company continues to expand, its focus remains on preserving brand authenticity while equipping its restaurants with the necessary resources to enhance customer experience, streamline operations, and unlock new growth opportunities.
With a proven track record of successful acquisitions and a leadership team poised to drive innovation, ARB is well-positioned to further expand its footprint and redefine the regional dining landscape. Tavern in the Square’s integration into the ARB portfolio signals not only an exciting chapter for the brand itself but also a broader trend in the restaurant industry, where strategic acquisitions and operational excellence pave the way for sustained growth and success.
As ARB moves forward, its commitment to quality, guest loyalty, and regional brand integrity remains unwavering. With strong financial backing, experienced leadership, and a clear vision for the future, ARB continues to solidify its reputation as a powerhouse in the regional dining sector, setting new standards for growth and performance in the industry.
