Ruth’s Hospitality Group Inc. said Friday that it is acquiring six Hawaii Ruth’s Chris Steak House restaurants from franchisee Desert Island Restaurants for approximately $35 million in cash.
Scottsdale, Arizona-based Desert Island Restaurants, operated by founder and CEO Randy Schoch, has been the franchisee for Ruth’s Chris restaurants in Waterfront Plaza in Honolulu, at Waikiki Beach Walk, Lahaina and Wailea on Maui, Mauna Lani on the Big Island and on Kauai, for some 20 years. It also operates Romano’s Macaroni Grill in Ala Moana Center and in Waikoloa on the Big Island.
“Today’s announcement of the acquisition of our six Hawaiian franchise locations presents a significant opportunity for us,” Mike O’Donnell, chairman and CEO of Ruth’s Hospitality Group (Nasdaq: RUTH), said in a statement. “Having spent time with the teams in Hawaii, I’ve seen firsthand why our guests so enjoy their dining experiences with us. I look forward to continuing our great work with the Hawaii teams.”