Kout Food Group acquires Little Chef for £15m

Purchase of the cafe chain from RCapital to take brand to next stage

British roadside restaurant chain Little Chef has been acquired by the UK arm of food and service franchise specialist Kout Food Group (KFG), a Kuwaiti-owned business, for a major sum of £15m.

The acquisition sees KFG take over from the brand’s previous owners, private investment company RCapital, after it was up for sale earlier this year following a series of disappointing restaurant closures.

Founded in 1958, with the first restaurant opening in Reading, Little Chef is well-known for its roadside eatery services modelled on US diners and there are currently 78 outlets across the country.

Over the years it has passed through a string of owners and it now joins KFG’s growing portfolio which includes the Maison Blanc brand and more than 40 KFC and Burger King stores. KFG have ambitious plans to revitalise the chain.

Commenting on the acquisition, chief executive of RCapital Jamie Constable said:

“Having owned Little Chef for a long time it feels like we are selling part of ourselves. But we take comfort from the fact that the new owners will take the brand to the next stage.”

Fadwa al-Homaizi, chairwoman of KFG’s UK division, added:

“Little Chef will benefit from a process of brand renewal in keeping with current trends, supported by traditional British values.”

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