Black-owned private equity firm Corlex Capital has announced that it has acquired ten Wingstop restaurants in two different markets, and has intentions to acquire or otherwise develop at least 13 more Wingstop stores in the coming year.
In a statement, Corlex Capital founder Jason Bedasse confirmed that its affiliate, in partnership with Prospect Capital Restaurants, confirmed the deal as of yesterday.
“We are proud to have joined the Wingstop family and we are eager to bring Corlex’s operational prowess to the newly acquired restaurants. We look forward to playing an active role in the continued growth of the Wingstop system,” he said.
Corlex acquired the first nine restaurants late in 2020, and added the tenth restaurant to the final deal on Jan. 6, 2021. The initial ten restaurant deal features five restaurants in Boston, MA, and five restaurants in Indianapolis, IN.
Further, Corlex confirmed their 13 restaurant development deal will focus on the greater Boston metropolitan area.
“Corlex Capital has a track record of enhancing value by bringing its operational focus to growing franchise systems,” Bedasse told AfroTech. “This is really important because we have to implement strategies to improve growth and profitability include addressing issues such as labor shortages and wage pressures, technological changes, e-commerce, and delivery challenges, increased health and safety concerns, and other issues brought on by the COVID-19 pandemic.”
In addition to being Black-owned and majority-Black operated, Corlex Capital specializes in minority set-aside contracts. According to its website, this means they have “a mandate to award a percentage of an overall contract to an individual/firm that meets the stated criteria for a minority set aside.”
In other words, Corlex’s primary objective is to invest in, consult with, and provide services to Black-owned businesses in the quick-service restaurant industry.
Even in the midst of COVID-19, which has all but decimated the modern restaurant industry, Corlex Capital boasts a robust track record, which they hope will extend to this latest venture with Wingstop.
“Strategies to improve growth and profitability include addressing issues such as labor shortages and wage pressures, technological changes, e-commerce and delivery challenges, [and] increased health and safety concerns,” the company said in a statement. “Corlex is poised to bring its management expertise and build on its acquisition portfolio with additional Wingstop restaurants and is actively evaluating other concepts for the future.”
Monroe Moxness Berg PA served as legal advisor to Corlex Capital and Paris Ackerman LLP served as legal advisor to Prospect Capital Restaurants, which owns Boskerdoo Coffee & Baking Company and Jersey Mike’s in addition to the Wingstop brand of restaurants.