TravelCenters of America has agreed to acquire the Quaker Steak & Lube casual-dining chain for $25 million, in a move that will see some of its existing full-service restaurants converted to the brand as well as expanding the number of stand-alone restaurants.
Founded in 1974, Quaker Steak & Lube has over 50 locations, a majority of which are franchised, in 16 states. Concentrated in Pennsylvania and Ohio, they are known for wings and their automotive-themed decor.
Quaker Steak & Lube Monday began proceedings for reorganization under Chapter 11 of the U.S. Bankruptcy Code and simultaneously filed in court the asset purchase and $2 million debtor in possession financing agreements with TA.
TravelCenters says its expertise operating full-service restaurants nationally will help it build Quaker Steak & Lube into a nationally recognized brand and increase the profitability of its existing operations.
The travel center chain, which operates both TA and Petro brand truckstops, says the move will help expand TravelCenters’ customer base to include additional traffic from four wheel motorists and local markets and grow the profits at certain existing travel center restaurants.
“Quaker Steak & Lube®’s unique brand and award winning menu is a great fit for TA’s primary customers – professional truck drivers and highway motorists,” said TA CEO Tom O’Brien. "By converting some of our existing full service restaurants to the Quaker Steak & Lube brand, we will enhance the variety of food and hospitality options that our travel centers already provide to professional drivers at the same time that we expand the public awareness of the Quaker Steak & Lube brand."
The agreements are subject to bankruptcy court approval processes, which are expected to be completed in early 2016, and other conditions.