RETAIL & RESTAURANT GROWTH CAPITAL, L.P., PRIVATE EQUITY PARTNERS PROVIDE FINANCING FOR BLUE CHALK CAFE CORPORATION
DALLAS - MAY 7, 1998 -- Retail & Restaurant Growth Capital, L.P., ("RRGC"), a Federal Licensee under the Small Business Investment Act of 1958, and Private Equity Partners ("PEP") announced today that they have each made $2 million dollar investments in Blue Chalk Cafe Corporation. Additional entities collectively invested $1.5 million, bringing the total financing to $5.5 million. Blue Chalk is a privately-held, casual dining restaurant company that owns and operates seven restaurants in California. The Company will use the new capital to build additional units and for general corporate purposes.
Six of the Company's restaurants operate as Left at Albuquerque, a Southwestern influenced, festive dining concept, and represents the Company's primary growth vehicle. Left at Albuquerque boasts an extensive menu distinguished by its bold flavors, more than 20 chilies and 15 fresh salsas, premium signature margaritas and the 'world's largest selection' of more than 120 tequilas. Menu items include the "Towering Tostado," "Ancho-Chile Prawns," the "Green Monster Enchilada" and "Red, White and Blue Taquitos." The Company is one of the largest casual dining chains focusing on Southwestern cuisine and was selected by Nation's Restaurant News as one of eight "Hot Concepts!" winners for 1998.
Blue Chalk was founded in 1992 by President/CEO Maurice Werdegar and Duke Rohlen, who serves as Executive Vice President. Werdegar and Rohlen, both graduates of Stanford University, developed the Company's first restaurant, The Blue Chalk Cafe, which was designed to serve Southern 'comfort cuisine' in an upscale dining and entertainment atmosphere. The Blue Chalk Cafe opened in May 1993 and is still the namesake of the Company. In 1995, the Company opened its second concept, Left at Albuquerque, which was specifically designed to be the concept for growth to new markets.
The Company's sixth Left at Albuquerque unit opened last month in Irvine, California, and represents the Company's prototype for future units. Maurice Werdegar stated, "With this financing, we are pleased to take advantage of the exciting opportunities that lie ahead for Left at Albuquerque. We are enthusiastic about our new partnership with Retail and Restaurant Growth Capital and Private Equity Partners, and look forward to the strategic value they will provide as we aggressively grow our company."
RRGC general partner J. Eric Lawrence has been named to the board of directors of Blue Chalk Cafe Corporation. Mr. Lawrence, a former senior consultant at Arthur Andersen, L.L.P., specializes in the retail and restaurant industries, and brings direct retail and restaurant consulting and operating experience to this board appointment. Currently, Mr. Lawrence is a board member of Quizno's Corporation and an advisory board member of Mobile Car Care.
"Maurice, Duke and their team have done an exceptional job at creating a casual dining concept that addresses key trends prevalent in our current restaurant environment. Consumers today want more than burgers and pasta - they desire unique and entertaining experiences. We believe that Left at Albuquerque effectively combines bold flavor profiles, an energetic ambiance and high levels of service to provide such an experience," said Eric Lawrence.
RRGC provides debt capital and strategic counsel to emerging retail and restaurant businesses that have exhibited a potential for accelerated growth and expansion. Dallas-based RRGC is the first firm of its kind to specialize in providing debt securities to the retail and food-service industries, both of which have traditionally had limited access to debt and equity markets. RRGC's portfolio companies, other than Blue Chalk Cafe Corporation, include the Colorado Pen Company, Quizno's Classic Subs, FoodStar Restaurant Group, Texas Land & Cattle Steakhouse, Elizabeth Arden Red Door Salons, Bikes USA and Mobile Car Care.
PEP, which has also received the right to a seat on the board of directors is a generalist private equity firm based in Fort Worth. Principals Scott M. Kleberg and Jeff Alexander manage previous investments across a broad range of industries. PEP considers opportunities to provide growth capital, facilitate recapitalizations or effect buyouts in partnership with exceptional management teams. In addition to supplying capital, PEP actively assists portfolio companies in the areas of corporate finance and strategy.