Swisshelm companies sell Burger King holdings

Swisshelm Group Inc., Swisshelm Family LP and Point Guard Enterprises, all founded by Springfield restaurateur Bruce Swisshelm, on March 2 sold off their 24 Burger King locations. The stores are spread across southwest Missouri, eastern Kansas and northern Arkansas, according to the Bill Beall Co. brokers who represented the Swisshelm companies in the deal.

Duke and King Acquisition Co., a holding company for New Jersey-based Kinderhook Industries that operates more than 110 Burger King stores in eight states, purchased the 24 stores for between $15 million and $20 million, broker Bill Beall said. Nancy Herchenroeder assisted Beall in representing the sellers, while Duke and King Acquisition handled negotiations internally.

At its peak, the Swisshelm companies, which have been in the quick-service restaurant business for more than 30 years, employed about 750 in their Burger King stores; those stores currently employ about 550.

While the Swisshelm companies may have divested their Burger King holdings, the Swisshelm family is not getting out of the restaurant business. Swisshelm Group in January announced plans for three Macaroni Grill locations, the first of which is slated to open later this year at an undetermined location in Springfield. The others, in Branson and northern Arkansas, are slated to open by the end of 2010. Swisshelm Group also owns two McAlister’s Deli locations in Jacksonville, Fla.

Representatives of Swisshelm Group did not return calls seeking comment.

‘A leading franchisee’

Minnesota-based Duke and King is a relative newcomer to the fast-food holdings business.

Its entrée to the restaurant business was a Nov. 1 purchase of 88 of the 89 Burger King locations of Bloomington, Minn.-based Nath Cos. Inc. Those restaurants are located in Minnesota, Illinois, Iowa, Wisconsin and Florida.

Paul Cifelli, a partner with Kinderhook, said the southwest Missouri stores are part of Duke and King’s plan to expand its Burger King holdings.

“The stated goal of Duke and King is to become a leading franchisee within the Burger King organization, and this is another step in that strategy,” Cifelli said.

Little changes

Duke and King, however, has a way to go to catch Burger King franchise leader Carrols Corp.’s 328 restaurants in 12 states, according to Burger King corporate spokeswoman Andrea Tejada.

While Duke and King will set up a local office to manage the southwest Missouri stores, Cifelli said there aren’t major changes planned for the local restaurants.

“Bruce Swisshelm has done a very good job over the years of building this business, and we’re not going to mess with that,” Cifelli said. “Hopefully, what we can do is improve the operations where we can and, more than anything else, provide more access to capital.”[[In-content Ad]]