Financing

MGG Investment Group invests in Shari's Restaurants

The investment firm invested in the chain’s 42 Oregon locations, where the restaurants operate video lottery games.
Shari's investment
MGG Investment Group has invested in Shari's Restaurants' Oregon locations. | Image courtesy of Shari's Restaurants.

MGG Investment Group has made an investment in 42 Shari’s Restaurants locations in Oregon, Shari’s parent company Gather Holdings said on Tuesday.

Terms of the deal were not disclosed, but the locations represent about half of Shari’s 85 total restaurants. Sam Borgese, owner of Gather Holdings, said in a statement that MGG has “deep knowledge of video lottery gaming operations, which are present in our 42 Oregon restaurants.”

He said that the capital infusion “will ensure our restaurants can continue their recoveries from the challenges presented by the COVID-19 pandemic.”

MGG is a private investment firm that invests in mid-sized and growing lower-middle market companies.

Shari’s U.S. system sales rose 3.2% last year to $132.1 million. Sales at the entirely company-operated chain are down 21% over the past five years, according to data from Restaurant Business sister company Technomic.

The family-dining chain is typically known for its pies but features a menu highlighted by its comfort foods. Gather Holdings also owns the Coco’s Restaurants chain, which it acquired from Food Management Partners in 2018.

“I am grateful for the determination, resilience and grit of our entire team of restaurant operators and support center employees who stood by the business and are the reason we are positioned for success,” Borgese said.

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