K&W Cafeterias Retains M&A Specialist SC&H Capital

By order of the US Bankruptcy Court, Middle District of North Carolina, Winston-Salem Division, SC&H Capital, a leading investment bank specializing in M&A advisory, has been retained as the exclusive investment banker to K&W Cafeterias (“K&W” or “the Company”) for the sale of 18 cafeteria-style restaurants.  K&W is an 83-year-old, Winston-Salem based, family owned and operated restaurant chain with locations in North Carolina, South Carolina, and Virginia, specializing in made from scratch, home-style southern food at an affordable price.

The Company is defined by its loyal customer following, and dedicated employees, many of whom have been with the Company for 30-40 years. The restaurants operate in the fast-casual service style, offering in store dining and take out options, utilizing in person ordering, online ordering, or third-party delivery. Locations are also utilized for catering, and contract food service, providing food services to commercial, institutional, and governmental locations.

The Company operated between 28 and 35 restaurants with a consistent level of revenue until June 2020 when revenues declined significantly, primarily due to the COVID-19 pandemic.  As a result, 10 locations have been closed, leaving 18 locations currently operating.  Unlike buffet-style restaurants, the Company’s cafeteria-style service allows for employees to control delivery of food to customers, eliminating the need to significantly change day-to-day operations to comply with current or future COVID-19 regulations.  Personnel and operational adjustments have also been made to assure future profitability by hyper-focusing on controlling food and labor costs and implementing measures to assure a safe environment for customers and employees. 

Hank Waida, Principal at SC&H Capital, said, “This is an opportunity to purchase any single or combination of 18 locations of an established and widely recognized regional restaurant chain, with a solid management and operating team in place.”

About SC&H Capital

SC&H Capital, an affiliate of SC&H Group, is an investment banking and advisory firm providing merger and acquisition (M&A), special situation, employee stock ownership plan (ESOP), capital raising, and business valuation solutions to middle-market and growth companies nationwide. SC&H Capital delivers investment banking and advisory services across numerous industries, including technology, healthcare, manufacturing, and government contracting, to help owners achieve their exit planning goals and liquidity objectives. To learn more, visit www.schcapital.com.