New York-based growth capital firm General Atlantic has taken a “significant” stake in Lebanese-style charcoal grilled roast chicken restaurants chain El Jannah.
The size of the investment has not been disclosed but is believed to value the 50-outlet chain at more than $50 million. A campaign for an investment partner suggested, 230-store Guzman y Gomez (ASX: GYG), which has a $2.29 billion market cap, as a listed comparable.
General Atlantic managing director Neal Kok, who heads the firm’s South-East Asia and Australia operations, said: “El Jannah is one of the most distinctive and exciting restaurant offerings we have seen in Australia. Its combination of authentic food and amazing community following are core to what has made it an incredible success.”
Lebanese migrants Andre and Carole Estephan started the chain with a single restaurant in Granville, western Sydney, in 1998.
El Jannah chief executive Brett Houldin, who will continue leading the business, said General Atlantic’s support would enable acceleration of the company’s growth plans.
El Jannah plans to open 25 new restaurants over the next 12 months and reach 200 outlets across Australia within five years.
International expansion was also likely, Houldin said. He said the founders planned to look at opportunities to take the brand to the Middle East as a starting point.
El Jannah’s menu centres on Lebanese-style charcoal-roasted chicken and garlic sauce, prepared to a secret family recipe.
The Estephans stepped back from daily management of the restaurant chain with Houldin’s appointment in 2019 but remain involved in the business.
Houldin joined El Jannah after heading Cravable Brands, the PAG Asia Capital investee company that operates the Red Rooster and Oporto fast-food chicken franchise restaurant chains. Houldin is also a shareholder in El Jannah.
Andre Estephan said: “We built El Jannah with our family for Australian families. We now want to carry that dream into its next generation, while keeping our culture, values and identity exactly where they belong − at the heart of the business.
“Our dream is to offer our customers more locations and more convenience, allowing more people to discover the brand Australians already love. We want to share our authentic flavours and recipes, our renowned service reflecting Lebanese warmth and our cultural soul that has defined us from the beginning.”
General Atlantic took a minority stake in Australian fashion brand Zimmermann in 2016 and exited that stake when European firm Style Equity acquired a majority stake in the business in 2021. Global private equity firm Advent International acquired a majority stake in Zimmerman, reportedly for around $2.3 billion in 2023.
Image: El Jannah charcoal-roasted chicken.