Sonny’s BBQ is a popular chain of barbecue restaurants based in Gainesville, Florida. The company was founded in 1968 by Floyd “Sonny” Tillman and currently operates over 200 locations across the Southern United States. But who exactly owns Sonny’s BBQ today?
History of Sonny’s BBQ Ownership
Sonny Tillman opened the first Sonny’s BBQ restaurant in Gainesville in 1968. For over a decade, Tillman solely owned and operated the growing Sonny’s BBQ chain.
In 1974, Tillman brought on a business partner, Bob Yarmuth, who helped expand the company. Tillman and Yarmuth jointly owned Sonny’s BBQ for the next 7 years.
In 1981, the equity firm First Capital Partners acquired Sonny’s BBQ from Tillman and Yarmuth. This marked the first major change in ownership for the barbecue chain. First Capital Partners continued to expand Sonny’s presence across Florida.
In 1988, Sonny’s was sold again – this time to the food service company Servomation Corp. Just two years later, in 1990, Servomation merged with Hobart Corporation, forming Hobart Food Equipment. Through this merger, Hobart Food Equipment took over the ownership of Sonny’s.
Over the next 15 years, Sonny’s experienced tremendous growth under Hobart Food Equipment’s leadership. The chain expanded into Alabama, Georgia, Mississippi, and North Carolina. By 2006, Sonny’s had grown to over 100 locations.
Current Ownership Situation at Sonny’s BBQ
In 2006, the private equity group MileStone Partners purchased Sonny’s BBQ from Hobart Food Equipment. This marked another major shift in ownership for the company.
Under MileStone’s ownership, Sonny’s accelerated expansion efforts. In 2010, the chain crossed the 200 restaurant milestone. MileStone also launched Sonny’s BBQ’s franchise program during this period.
Today, MileStone Partners continues to own and operate Sonny’s BBQ. The private equity firm has held ownership of Sonny’s for over 15 years now.
While MileStone Partners owns the overall Sonny’s BBQ business, there are also a number of individual franchise owners. These franchisees own and operate their local Sonny’s BBQ restaurants through licensing agreements with the parent company.
So in summary:
- MileStone Partners – Private equity firm that has owned Sonny’s BBQ since 2006
- Franchise Owners – Individual owners of local Sonny’s BBQ franchise locations
- Floyd “Sonny” Tillman – Founded Sonny’s in 1968 and jointly owned the chain until 1981
Leadership at Sonny’s BBQ
While MileStone Partners owns Sonny’s BBQ, the day-to-day operations and strategic decision making are handled by the chain’s executive leadership team.
CEO
The top executive position at Sonny’s BBQ is Chief Executive Officer. This role is currently held by Norman McLoughlin. McLoughlin has been CEO of Sonny’s since 2017.
As CEO, McLoughlin oversees the entire Sonny’s BBQ organization. He provides overall strategic direction and leads the development of growth initiatives.
Other Executives
Reporting to the CEO are several other senior executives who manage key areas of the business:
- Chief Operating Officer – Oversees restaurant operations and performance
- Chief Marketing Officer – Responsible for marketing, advertising, and brand management
- Chief Development Officer – Manages franchise development and real estate
- Chief Financial Officer – Oversees accounting, financing, budgets and more
Sonny’s executive team has ample experience in the restaurant industry. Many started their careers with other major chains like McDonald’s, Wendy’s and Yum Brands.
The combination of seasoned leadership and engaged private equity ownership has helped drive Sonny’s continued expansion over the past decade. As of 2022, Sonny’s BBQ operates over 230 restaurants across 7 southeastern states.
Financial Performance and Growth
As a private equity owned company, Sonny’s BBQ does not publicly disclose detailed financial statements or performance metrics. However, there are some key financial indicators available that provide insight into the chain’s growth trajectory:
- 230+ restaurants – Sonny’s now has over 230 locations across 7 states. The chain has nearly doubled in size since MileStone Partners acquired it in 2006.
- $500+ million in systemwide sales – Sonny’s surpassed $500 million in total systemwide sales in 2021. This marked a key milestone reflecting continued organic growth.
- 13% AUV growth – In 2021, the chain achieved 13% growth in average unit volumes. This indicates individual Sonny’s locations are seeing steady sales increases year-over-year.
- ~15 new openings per year – Sonny’s maintains a pace of 10-15 new restaurant openings annually. This shows ongoing development momentum.
- Debt repayments – Sonny’s recently paid off $380 million in long-term acquisition debt, showing strong financial health.
Given this growth and performance, Sonny’s financial outlook appears positive under MileStone Partners’ active ownership. The chain is positioned well to continue expanding its presence throughout the Southeast US.
Impact on BBQ Culture
Beyond just ownership and financing, Sonny’s BBQ has had a major influence on barbecue culture in the Southeastern United States:
Mainstreaming BBQ
When Sonny Tillman opened the first Sonny’s in 1968, barbecue was still a niche cuisine in Florida. Sonny’s helped bring seasoned, smoked barbecue into the mainstream dining scene. The chain made BBQ more accessible and familiar to the general public.
Consistent Experience
As it expanded, Sonny’s standardized BBQ protocols across all locations. This created a consistent barbecue experience for customers, regardless of location. Sonny’s showed BBQ could scale successfully while maintaining quality.
Regional Expansion
During the 1990s and 2000s, Sonny’s brought its style of Southern BBQ into new markets like Alabama, Georgia and the Carolinas. This helped spread Sonny’s flavor profiles into regions where BBQ traditions differed.
New Competition
The success of Sonny’s BBQ helped spark a wave of new barbecue joints and chains. Many competitors emerged trying to imitate Sonny’s model. This brought more variety and innovation to the broader BBQ restaurant landscape.
By bringing mass-market visibility to Southern barbecue, Sonny’s helped turn BBQ into a full-fledged American cuisine staple. Its influence on tastes and trends is still felt today.
Sonny’s Franchising Model
An overview of Sonny’s BBQ’s franchising model also provides perspective on the company’s ownership and structure:
Franchisee Selection
To become a Sonny’s BBQ franchisee, candidates must have an existing net worth of at least $1.5 million and at least $500,000 in liquid assets. This ensures potential franchisees are financially prepared.
Franchisee Benefits
Franchisees benefit from Sonny’s 50+ years of brand recognition and receive extensive training and support. The company handles things like marketing, purchasing, and product R&D.
Initial Investment
The total initial investment to open a new Sonny’s BBQ franchise ranges from $1,184,000 – $2,623,500. This covers real estate, construction, equipment, and working capital.
Ongoing Fees
Sonny’s franchisees pay royalty fees equal to 4% of gross sales. They also contribute 1% of sales to the brand’s national marketing fund.
Term Length
Sonny’s franchise agreements last for a term of 10 years and can be subsequently renewed. This provides a stable long-term relationship.
By recruiting ambitious, qualified franchisees, Sonny’s is able to expand its reach while still maintaining operational consistency. The franchising model has worked well, enabling strategic growth under MileStone’s ownership.
Sonny’s BBQ Community Involvement
In addition to growing a successful business, Sonny’s BBQ also prides itself on giving back to local communities. This has helped build goodwill and cement Sonny’s standing as a socially responsible company. Some community initiatives Sonny’s actively participates in include:
- Charity Fundraising Events – Sonny’s restaurants regularly host fundraising cookouts, with proceeds going to nonprofit partners ranging from children’s hospitals to youth mentoring programs. This raises hundreds of thousands of dollars each year for deserving causes.
- Sonny’s Smokehouse Fund – This is the company’s employee assistance fund, providing financial help to Sonny’s team members facing personal crisis or natural disaster situations. It offers tangible corporate support to employees in their times of need.
- BBQ Supply Donations – Sonny’s donates surplus ingredients, equipment, and supplies to community food banks and shelters throughout its footprint. Recently, this included donating over 30,000 pounds of fresh produce to organizations feeding residents impacted by Hurricane Ian in Florida.
- First Responder Appreciation – Individual Sonny’s locations show support for local police, firefighters, EMTs and other first responders through special discounts, complimentary meals, and BBQ donations to agency cookouts.
- Local School Partnerships – Sonny’s works with schools to provide meals for student fundraisers, sports team banquets, and other events. The company also offers Sonny’s gift cards as prizes for academic and extracurricular achievement.
This community engagement shows that Sonny’s cares about more than just profits under its current private equity ownership. The chain aims to be a socially responsible company that gives back. Sonny’s local roots still influence its corporate ethos today.
Evaluating Sonny’s Private Equity Ownership
Overall, MileStone Partners’ acquisition and private equity ownership of Sonny’s BBQ can be deemed a successful partnership that has accelerated the brand’s growth:
Pros
- More than doubled unit count since taking ownership
- Achieved significant gains in sales volumes and revenues
- Fueled expansion into new states and markets
- Provided capital for real estate and new restaurant development
- Retained and expanded core leadership team
- Allowed founders to realize financial return
Potential Cons
- Debt loads reduced cash flow in early years after acquisition
- Founders no longer involved in day-to-day operations
- Menu innovation slowed compared to early years
- Price increases implemented to improve profit margin
Given its strong track record, MileStone Partners is likely to maintain ownership of Sonny’s BBQ for years to come. Their tenure is one of the longest of any private equity owner in the restaurant space.
Both parties appear happy – MileStone with their return on investment, and Sonny’s with their accelerated growth trajectory. It is a model relationship between a storied BBQ brand and a skilled private equity firm.
The Future of Sonny’s BBQ
Looking ahead, what does the future hold for Sonny’s BBQ under MileStone Partners’ ownership?
More Expansion on the Horizon
MileStone will likely continue pursuing new restaurant openings throughout the Southeast. Markets like Louisiana, South Carolina, and southern Virginia still offer Sonny’s ample room for growth.
Menu and Concept Innovation
To stay ahead of competitors, Sonny’s needs to test out new offerings, daypart expansions, and segments like fast-casual. MileStone can supply the resources to fuel product innovation.
Increased Commitment to Franchising
Transitioning more units to a franchise model reduces capital investment for corporate. Franchising may power the majority of Sonny’s future development.
Brand Extension Opportunities
MileStone could look to leverage the Sonny’s brand into new areas like pre-packaged foods, sauce retail, or virtual brands. Extending Sonny’s reach beyond the core BBQ restaurants would unlock additional revenue streams.
Sonny’s will celebrate its 55th anniversary in 2023. With MileStone Partners’ stewardship, the next 55 years for this heritage Southern BBQ chain look bright. Sonny’s authentic smoked meats are poised to continue satisfying fans for generations to come.
Frequently Asked Questions About Sonny’s BBQ Ownership
Here are answers to some of the most frequently asked questions regarding the ownership, management, and financing of Sonny’s BBQ:
Who currently owns Sonny’s BBQ?
Sonny’s BBQ is currently owned by the private equity firm MileStone Partners. They acquired Sonny’s in 2006 and remain the parent company.
Does Sonny Tillman still own Sonny’s BBQ?
No, Sonny Tillman and his original co-owner Bob Yarmuth sold the chain to a private equity firm in 1981. Tillman is no longer involved with the company’s ownership or operations.
Are any Sonny’s BBQ locations individually franchised?
Yes, while MileStone Partners owns the Sonny’s company outright, numerous individual Sonny’s BBQ restaurants are run by franchisees. Franchising accelerated under MileStone’s ownership.
Is Sonny’s BBQ a publicly traded company?
No, as a private equity owned brand, Sonny’s BBQ is a privately held company. Its financials and performance metrics are not publicly reported.
Who makes decisions for Sonny’s BBQ as the parent company?
Sonny’s executive leadership team handles strategic decisions. Top executives like the CEO, COO, and CMO lead individual functional areas of the business.
How did Sonny’s BBQ finance its recent growth and expansion?
Sonny’s growth has been financed through a combination of private equity investment from MileStone Partners and traditional loans. The brand recently paid off significant acquisition debt as well.
Is Sonny’s BBQ currently looking for more private equity investment?
It’s unlikely Sonny’s will seek more private equity involvement in the near future. MileStone Partners still maintains 100% ownership control of Sonny’s.
What have been the benefits of MileStone Partners’ ownership of Sonny’s?
MileStone has provided the capital and strategic guidance to double Sonny’s unit footprint. They’ve also professionalized operations while still respecting Sonny’s heritage.
Does Sonny’s BBQ give back to the community?
Yes, Sonny’s is involved with a wide range of charitable initiatives at both the local and corporate level. Giving back is a core part of the brand’s values.
For any additional questions on Sonny’s BBQ’s ownership or franchising structure, it’s best to contact their corporate headquarters directly. They can provide the most up-to-date information.
Conclusion
In summary, Sonny’s BBQ has evolved from a local Florida smokehouse to one of the most prominent barbecue chains in the Southeastern US. After being founded by Sonny Tillman in the 1960s, Sonny’s ownership has changed multiple times, most recently being acquired by private equity firm MileStone Partners.
MileStone has expanded the Sonny’s footprint to over 230 locations while staying true to its authentic BBQ roots. The combination of an experienced leadership team and engaged private equity ownership has fueled Sonny’s continued growth for over 15 years now.
Looking ahead, Sonny’s appears poised for even more expansion under MileStone’s stewardship. The chain will continue innovating its menu offerings while also giving back to the communities it serves.
For barbecue fans, Sonny’s will remain a go-to destination for smoked meats, banana pudding, and Southern hospitality. The chain’s commitment to quality and honoring its heritage should keep patrons satisfied for decades to come.