Rick Federico, chairman and CEO of P.F. Chang's, said, "We are extremely excited about this opportunity, as True Food Kitchen is a great brand with tremendous potential. The True Food Kitchen concept is aligned with the rising demand for healthier menu options, and the restaurants provide a fun and innovative dining experience. True Food Kitchen has already established a dedicated consumer following, and we believe the concept has significant opportunities for growth."
In 2009, P.F. Chang's extended a loan facility to fund early stage development of True Food Kitchen, with a right to convert its loan into a majority equity ownership position. In February 2012, after receiving authorization from its board of directors, P.F. Chang's and True Food Kitchen's partners mutually agreed to exercise the company's conversion option, which is expected to be completed during the second quarter of 2012. Upon completion, P.F. Chang's will own 51% of True Food Kitchen, with potential rights and obligations that would enable the company to increase its ownership to 90% or more in the future. Further details on the terms of the True Food Kitchen agreement are contained within the company's annual report on form 10-K that will be filed today.
Sam Fox, founder and CEO of Fox Restaurant Concepts, said, "Dr. Andrew Weil and I believe True Food Kitchen is well positioned to capitalize on the current direction of the food industry. We have formed a great relationship with the P.F. Chang's management team and are extremely pleased by their commitment to continue our partnership. We look forward to making a difference in the lives of so many guests through the continued expansion and development of our True Food Kitchen restaurants."
Federico added, "Sam and his team have done a great job creating a unique concept in True Food Kitchen. Upon completion of the conversion, all operation and development activities will continue to be executed by Fox Restaurant Concepts and the True Food Kitchen team, as our primary focus remains on driving growth at P.F. Chang's Bistro and Pei Wei concepts."
True Food Kitchen currently has four locations, with two restaurants in Arizona and two in California. Two additional True Food Kitchens are planned for 2012.
From the February 17, 2012, Prepared Foods' Daily News.