Corlex Capital, a minority-owned private equity and advisory firm, joins the Wingstop restaurant system through acquisition.
Corlex Capital announced that it has an affiliate, in partnership with Prospect Capital Restaurants, has acquired 10 Wingstop restaurants in two markets and signed an agreement with Wingstop Inc. to develop or purchase an additional 13 restaurants.
Wingstop is known for its aviation-themed restaurants that mainly serve chicken wings. Wingstop reported that it operates more than 1,500 locations and operates franchises worldwide. The company had system-wide revenue of $ 1.5 billion in 2019, making it the 16th consecutive year of revenue growth in the same business.
Corlex Capital reports that it has been providing third-party operational management and advisory services to the fast food industry since 2019. With a track record of increasing sales and operational efficiency, Corlex is joining the Wingstop system by acquiring five Wingstop restaurants in Indianapolis and four restaurants in Boston.
The purchase of the first nine restaurants was completed in late 2020, and another location in Indianapolis was added to the portfolio on January 6th. Corlex and its partners have signed a development agreement to open an additional 13 restaurants in the Boston area over the next three years.
“We are proud to have joined the Wingstop family and we are committed to bringing Corlex's operational capabilities to the newly acquired restaurants. We look forward to playing an active role in the further growth of the Wingstop system, ”said Jason“ JB ”Bedasse, founder and CEO of Corlex, in a company press release.
Corlex claims to have a track record of adding value by having its operational focus on growing franchise systems. Strategies to improve growth and profitability include addressing issues such as labor shortages and wage pressures, technological changes, e-commerce and delivery problems, increased health and safety concerns, and other issues caused by the COVID-19 pandemic.
Restaurant chains such as Wingstop are classified as fast-casual. Observers say the business has grown steadily for nearly two decades. Fast-casual are restaurants that lie between the more traditional full-service restaurants and typical fast-food restaurants.