Del Frisco’s to acquire tapas owner Barteca for $325 million

Del Frisco’s to acquire tapas owner Barteca for $325 million

Barteca and Del Frisco’s brands focus on wine and an upscale menu, but their customers tend to be quite different, meaning there is less of a chance of sales being cannibalized if one brand is located near another, Abdallah said.

Diners that frequent Barcelona and Bartaco are similar to its Del Frisco Grill patrons in that they are looking for an experience when they eat out, not just a place to fuel up on food, and tend to be interested in socializing and purchasing alcohol. Customers typically spend about $33 to $40 per person at Barcelona and $22 to $28 per person at Barteca.

(source: Barteca)

The Double Eagle diner, however, is looking for a fine-dining restaurant for business dinners, company outings, anniversaries, birthdays or holidays, Abdallah said. These patrons tend to spend $115 to $125 per person.

Barteca’s two brands allow Del Frisco’s to hedge its bets against seasonality issues like weather or changes in customer food needs. While Barcelona and Bartaco tend to fare well in the spring and summer, Double Eagle is more favorable during the fall and winter, he said.

Bartaco, in particular, is susceptible to inclement weather, including rain, snow and cold temperatures because it relies on its patio as a core part of its business.

The deal with Barteca is expected to close by the end of the second quarter, according to Del Frisco’s. Barteca’s CEO Jeff Carcara will remain in his post and report directly to Abdallah.

Del Frisco’s is set to report its first-quarter earnings before the opening bell on Monday.

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