Tavern in the Square Joins ARB Platform: Ownership Structure Takes Shape as Regional Restaurant Empire Hits $1B Revenue Mark

Authentic Restaurant Brands has announced a significant portfolio expansion with the addition of Tavern in the Square, the celebrated New England dining institution. The acquisition, structured through a recapitalization of Broadway Hospitality Group (the entity that operates and owns Tavern in the Square), represents ARB’s fifth major transaction in as many years and propels the platform past the $1 billion annual revenue threshold.

Strategic Expansion Signals Shift in Restaurant Industry Consolidation

The transaction underscores a broader trend in the casual dining sector: established regional players are increasingly seeking partnerships with sophisticated platforms that combine operational expertise with growth capital. By joining ARB’s portfolio, Tavern in the Square gains access to industry-leading technology, data analytics capabilities, and operational infrastructure while maintaining its distinct brand identity and local market presence.

The deal structure also brought ARB’s EBITDA to over $150 million, demonstrating the financial strength underlying the platform. This positions ARB as a meaningful consolidator of authentic, locally-rooted restaurant concepts across multiple geographies.

Leadership Reshuffled to Propel Next Growth Phase

Alongside the Tavern acquisition, ARB announced significant leadership transitions. Alex Macedo, the platform’s co-founder and former Lead Operating Partner at Garnett Station Partners, has been elevated to Chairman and Chief Executive Officer. Macedo replaces Felipe Athayde, who established ARB from concept to its current billion-dollar status over the past five years.

The new CFO appointment went to Jon Howie, who spent over 13 years at Chuy’s Holdings before its recent acquisition by Darden Restaurants in Q4 2024. This leadership pairing combines Macedo’s extensive global restaurant operations background with Howie’s sophisticated public company financial management experience.

Who Owns Tavern in the Square Now? The Ownership Dynamics Explained

Under the new structure, Tavern in the Square’s parent company, Broadway Hospitality Group, has been recapitalized into ARB’s portfolio. This means that while Broadway Hospitality Group continues to operate the brand and maintain its operational independence, it now functions as part of the larger ARB platform under Garnett Station Partners’ investment umbrella. Stephen DeSousa remains CEO of Broadway Hospitality Group, preserving operational continuity while gaining access to ARB’s resources.

Portfolio Composition and Market Strategy

ARB’s regional fortress brands now include:

• Primanti Bros. Restaurant & Bar – spanning Pennsylvania, West Virginia, Ohio, and Maryland
• P.J. Whelihan’s Pub & Restaurant – dominant in the Greater Delaware Valley region
• Mambo Seafood – established in Houston and San Antonio
• Pollo Tropical – Florida-based concept
• Tavern in the Square – New England’s polished-casual dining anchor with 17 locations

This geographic diversification allows ARB to operate as a true platform play rather than a single-concept operator, enabling resource sharing, best practice dissemination, and targeted growth capital deployment.

Executive Backgrounds Highlight Operational Pedigree

Macedo’s 20+ year track record spans senior roles at major global restaurant brands. His tenure as Global President of Tim Hortons and President of Burger King North America positioned him to understand both scale operations and turnaround dynamics. He also previously served as a board member of Brinker International, adding public company governance experience to his operational toolkit.

Howie brings complementary expertise through his 30+ year restaurant industry tenure, including leadership roles at Lone Star Steakhouse and Del Frisco’s, followed by the Chuy’s CFO role that spanned the company’s growth and eventual sale to Darden—a major public company transaction providing him with M&A and public markets experience.

Growth Strategy and Capital Deployment

The platform’s strong free cash flow generation creates capacity for continued acquisition of high-quality regional concepts. Management has signaled that the strategy centers on identifying authentic brands with loyal customer bases, providing them with operational and technological upgrades, and expanding their presence into adjacent markets without diluting their core identity.

Tavern in the Square specifically benefits from this playbook: it gains access to sophisticated operational systems, financial analytics, and expansion capital while the Boston-based hospitality company retains control over guest experience delivery and local market relationships that define its reputation.

Industry Positioning in Consolidated Landscape

As the restaurant industry continues consolidation trends, ARB’s model of acquiring and scaling regional brands—rather than pursuing national brand homogenization—reflects evolving consumer preferences for authentic, locally-rooted dining experiences. The achievement of $1 billion in annual revenue within five years demonstrates the financial viability of this thesis and positions ARB as a credible alternative to traditional restaurant holding companies for future acquisition targets seeking growth without loss of identity.