Franchise Lawyer Ned Levitt Comments on Popeyes Deal
Toronto Lawyer Ned Levitt recently commented for the article “Tim Hortons owner buys Popeyes, with an eye on cost cutting,” in the Globe and Mail, Canada's national newspaper.
The parent company of Tim Hortons and Burger King is buying Popeyes Louisiana Kitchen Inc. for $1.8 billion. Restaurant Brands International Inc. would be following a process it used at both Tim Hortons and Burger King that involved cost-cutting measures along with teaming up with local master franchisees in new markets.
Mr. Levitt told the Globe and Mail that while investors may be pleased with the Popeyes acquisition, other stakeholders – including some consumers and franchisees – may be not so happy. “Changes resulting from an acquisition of this size might include loss of a more ‘neighborhood’ experience and a potential increase in prices,” Mr. Levitt said.
To read the full article, please click here.
The parent company of Tim Hortons and Burger King is buying Popeyes Louisiana Kitchen Inc. for $1.8 billion. Restaurant Brands International Inc. would be following a process it used at both Tim Hortons and Burger King that involved cost-cutting measures along with teaming up with local master franchisees in new markets.
Mr. Levitt told the Globe and Mail that while investors may be pleased with the Popeyes acquisition, other stakeholders – including some consumers and franchisees – may be not so happy. “Changes resulting from an acquisition of this size might include loss of a more ‘neighborhood’ experience and a potential increase in prices,” Mr. Levitt said.
To read the full article, please click here.
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