El Jannah, the Lebanese chicken business, has sold in a $1 billion deal.

Sydney-founded Lebanese chicken chain El Jannah has acquired a billion-dollar, big-buddy partner in a deal said to be worth a billion dollars for the Lebanese Australian family from Granville in Sydney’s west! This leads to the question — how does a chicken shop attract such an incredible offer?

Started 27 years ago and now with 50 outlets in New South Wales, Victoria and the Australian Capital Territory, the family business, which has been courted by other big investment groups, has decided to work with Manhattan-based General Atlantic, which is an $180 billion asset manager.

The question is why would a New York based investor go for a Lebanese chicken shop? Well, its growth to 50 stores shows the product must be compelling and the founders clearly have created processes that means the quality of the chicken meals are repeatable, even if the owners aren’t there.

This is what Ray Croc, the man behind McDonald’s, showed the franchise world what to do to grow a burger business after joining the business in 1954. Croc’s systems were copied successfully and unsuccessfully by others. But still, why is a billion dollars on the table for the Estephan family, who created this potential megastar of food franchising?

Well, let’s look at one of its rivals in the takeaway food game — Guzman Y Gomez. This was listed on the Australian Stock Exchange in June 2024. While it’s market cap is now $2.57 billion, that value was 35% higher at one stage after listing. This example of what a food business can be worth is why the General Atlantic mob want to go to Granville and beyond to make billions!

This stock chart of Guzman Y Gomez shows what can happen when you get the expansion path right, even if there are some negative issues currently that explain its lower share price compared to its all-time high. Its share price was $43.35 and it’s now $23.62, after hitting $29 on the day of listing! While the current price isn’t great, GYG has shown how the market can get excited by these food operations when they’re run brilliantly.

Guzman Y Gomez (GYG)

The Sydney Morning Herald’s Jessica Yun looked at this current food story. El Jannah’s marketing officer Adam Issa explained this isn’t a ‘take the money and run’ exercise. “We are not in any way, shape or form selling out,” he told Yun and she revealed that El Jannah chief executive Brett Houldin and husband-and-wife founders Andre and Carole Estephan are retaining a “substantial minority stake” in the business.

While the billion dollar payday is thought to be ‘on the money’, this hasn’t come from the mouths of the owners. Undoubtedly, if right, it wouldn’t come as a big deposit without strings attached. Clearly, the current team has the smarts to grow 50 stores. The new target has grown from 200 to 500 outlets, now Chuck Feeney, General Atlantic’s founder, is a partner.

Feeney founded the Duty Free Shoppers Group and is famous for donating US$8 billion to charities over his working life.

Back to the Estephan family and the goldmine they have created with their famous garlic sauce chicken and Lebanese food. What have they done more than just creating a great product? Like many successful people and businesses, they’ve brought on someone who had skills that made the difference.

Yun pointed to Houldin, who “led Craveable for three years, and in that capacity, unsuccessfully attempted to acquire El Jannah, Issa said. After Houldin sold Craveable Brands to Hong Kong-headquartered PAG Asia Capital, Estephan rang him and asked him to lead El Jannah. He has been instrumental in rapidly accelerating the chain’s footprint and bringing corporate franchise-level operational and marketing standards.”

Craveables owned the likes of Oporto, Red Rooster and Chargrill Charlie’s, so in Houdlin the Estephan got the right man for the job. And the rest is history.

This is a great Australian success story. You have to wish these high achieving entrepreneurs the best of luck. And in taking the brand global, there’s a plan to take this Aussie Lebanese fare back to the motherland Lebanon in coming years.