Bojangles'

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Bojangles'

Type	Private
Founded	1977
Headquarters	Charlotte, North Carolina
Key people	Jack Fulk, Richard Thomas (Founders)
Industry	Food
Products	Fast food, including fried chicken, biscuits and Cajun fixins
Website	http://www.bojangles.com

Bojangles' is a regional chain of fast food restaurants based in Charlotte, North Carolina, specializing in spicy, Cajun fried chicken and buttermilk biscuits. The restaurants, named for the song written by Jerry Jeff Walker are also known for their distinctive side dishes (called fixins) including dirty rice, Cajun Pintos, thick-cut and Cajun seasoned french fries. Bojangles' also offers sausage gravy instead of the chicken gravy offered by most of its competitors. Traditional southern fried chicken is also available, but the chain rarely advertises it, instead focusing on the spicy chicken that fits its Cajun theme. Sandwiches have also been added to the menu. The chain's chicken sandwiches come "Cajun" as well as Southern Fried and breakfast is served all day.

Founded in Charlotte, North Carolina, in 1977 by Jack Fulk and Richard Thomas, Bojangles' grew rapidly to over 200 locations by 1984, only to see its growth rate slow into the 1990s. New management (former Wendy's executive Joe Drury joined the company as CEO in 2001) and an invigorated marketing campaign have seen the company grow in recent years to over 300 locations in 12 states, mostly in the American South (North Carolina, South Carolina, Georgia, Alabama, Florida, Tennessee, Arkansas, Missouri, Virginia) and the Mid-Atlantic States of Maryland, Pennsylvania, and New York, as well as the first international Bojangles' locations in Mexico, China, Honduras, and Jamaica. Roughly two-thirds of Bojangles' stores are company-owned, while the remaining 100 are franchise locations.

[edit] History

Jack Fulk founder of Bojangles' Restaurants, sold the Bojangles' concept to the now defunct New York company, The Horn & Hardart Company, in 1981. Horn and Hardart had pioneered "fast food" in another era with the use of coin operated automats, the last of which was located on 42nd street in New York City and was closed in the late 1980's. Horn and Hardart was a publicly held company and raised large amounts of capital for expansion of the Bojangles' chain using, among other sources, junk bonds pioneered by Michael Miliken. Miliken became a franchisee of Bojangles' in Texas as well. Although Horn and Hardart operated many high-volume, franchised Arby's and Burger King restaurants in New York City and in South Florida, and created several independent concepts, and acquired the west coast buffet chain, International Kings Table, the company's management became largely discredited after ongoing financial losses (During this era Forbes magazine published an article featuring Horn and Hardart chairman, Barry Florescue, entitled, "They Should Have Paid Him To Stay Home.")

During the time of Horn and Hardart's ownership the chain grew rapidly and expanded to 335 restaurants including 100 restaurants in Florida. Part of this growth was fueled by acquisitions including the Florida based "Biskits" chain. The conversion of the Biskits restaurants was unsuccessful and saddled the company with a large amount of new debt. Within the Bojangles' system there was extensive litigation with franchisees and others and the franchisee association threatened further large-scale litigation. Between 1985 and 1990 the chain rapidly contracted to 154 restaurants; all 100 restaurants in Florida were sold, many of them to the then-embryonic chain, Miami Subs. Several events brought about a modicum of stability in the late 1980's even while many of the company's largest markets were closed. When Hurricane Hugo struck the Carolinas the company was able to open many of its restaurants while electricity remained off for more than a week in many areas. The massive amount of business sparked a turn-around in the company's sales that continued for many years. The company was stabilized under the mature leadership of CEO John Bifone, and a settlement was reached with the franchise association which had threatened the company.

In 1990 Horn and Hardart sold most of its interest to Sienna Partners and Interwest Parters, which were managed by a group of young California venture capitalists based in Silicon Valley. The company was then headed by former KFC executive, Dick Campbell. After modest investment in facilities, training and operations, the company began a slow and steady improvement that lasted throughout most of the 1990s. In 1994 the company attempted a public offering which collapsed before completion based upon a "softening" of the performance and over-expansion of company units and franchisee acquisitions. Dick Campbell was replaced by CEO Jim Peterson. Again the company stabilized and improved its performance, eventually selling to a group of investors headed by Joe Drury and financed by FMAC in 1998.