Business

Asian fast-food chain sold to financier

By Kelly Chung Dawson (China Daily)
Updated: 2010-12-31 11:29

NEW YORK - Canadian financier has acquired Pick Up Stix, an Asian restaurant chain based in Southern California, adding to a portfolio of Asian restaurant chains Leeann Chin and Mandarin Express.

Lorne Goldberg, the owner and CEO of West Coast Capital, acquired Pick Up Stix and its 74 locations from Carlson Restaurants Inc for an undisclosed amount last week. Carlson Restaurants also owns T.G.I. Friday's, a successful nationwide chain. In a public statement, Carlson Restaurants said that it sold Pick Up Stix to focus on T.G.I. Friday's.

"We made a business decision to divest of the Pick Up Stix brand," a representative for Carlson said.

"We are very excited to own Pick Up Stix," Goldberg said in a statement. "We believe that the brand has enormous potential. It's an excellent strategic fit for our organization."

Goldberg told China Daily that he does not intend to expand Pick Up Stix outside of California, but will be very "hands-on" in improving the chain. Goals include unifying the brand and improving the food, decor and service, he said.

"We're very interested in improving the operations of the business and continuing to grow our overall base as we do each year," he said.

Pick Up Stix defines its food as "fast-casual" and offers other Asian dishes on its mostly Chinese menu. The chain was voted "Best Takeout" by The Orange County Register, a Southern California newspaper.

Born and raised in Montreal, Goldberg, who now lives in Los Angeles, said that he came into the Asian restaurant business by accident. As an investment banker, he was asked to help sell Mandarin Express in 2004, a fast-food chain with 35 locations. Following the success of that acquisition, in 2007 he bought Leeann Chin, an Asian fast-food restaurant chain with 43 locations based in Bloomington, Minn.

The company will move Pick Up Stix headquarters to Bloomington and will continue to operate its own commissary and distribution center, he said.

While Goldberg is himself a huge fan of Chinese food, he said, it was not his initial intention to acquire specifically Asian restaurants. He believes that his success in the category indicates a potential for more expansion in a niche market.

"I bought Mandarin Express because it was an opportunity that presented itself," he said. "It wasn't because it was specifically an Asian business opportunity, it was simply a business opportunity. Now with nearly 160 locations, it's clearly an area that we specialize in. We love the category."

In the near future, Goldberg intends to open up around five individual restaurants each year, he said. If non-Asian restaurant opportunities present themselves in the future, he would consider expanding outside the category, he said. "Anything can happen in the future," he said. "We will continue to grow in 2011."