SHARON, Pa. (WKBN) – TravelCenters of America LLC has made an agreement to purchase Quaker Steak and Lube’s restaurant and related assets for approximately $25 million.
Founded in Sharon in 1974, Quaker Steak and Lube has more than 50 locations across 16 states. TravelCenters, a Fortune 500 publicly-traded company, operates more than 500 full and quick-serve restaurants in full-service travel centers and convenience stores in 43 states. Among its operations include the “Petro” and “Minit Mart” brands, according to a news release.
Greg Lippert, chief executive officer of Quaker Steak and Lube, called the move a positive one for the company, saying that the “future at The Lube is bright.”
“TravelCenters of America brings in-depth experience and resources to help Quaker Steak and Lube build upon our system’s positive performance and help us fully realize our expansion goals,” Lippert said via a statement. “TA has stated its desire to use the existing company and franchisee Quaker Steak and Lube locations that it acquires as a core around which to expand Quaker Steak and Lube into a nationally-recognized brand.”
TravelCenters of America CEO Tom O’Brien added that the restaurant franchise is a good fit for its primary customers — professional truck drivers and highway motorists.
“We’re confident that our existing food service operations will provide TA the tools it needs to make Quaker Steak and Lube a nationally-recognized restaurant brand. By converting some of our existing full-service restaurants to The Lube, we will enhance the variety of food and hospitality options that our travel centers already provide to professional drivers, at the same time expand the awareness of Quaker Steak and Lube,” he said. “Also, we expect to expand The Lube’s existing franchise program, as well as its company-operated restaurants separate from our travel centers.”
On Monday, Quaker Steak and Lube submitted a bankruptcy filing which includes the asset purchase and $2 million debtor in possession financing agreements with TravelCenters. TravelCenters has placed a deposit toward the purchase price and agreed to offer employment following the closing to all of Quaker Steak and Lube’s current employees, according to the news release.
The agreements are subject to bankruptcy court approval, which is expected in early 2016, and an auction process.
The sale of the business comes after the closings of several Quaker Steak and Lube restaurants throughout the U.S. in recent years, including closures in Richmond, Va.; Waco, Texas; Fort Wayne, Ind.; Henrico County, Va.; Springfield, Ill. and Kentwood, Mich.