Firehouse Subs, the Jacksonville-based restaurant chain founded by Jacksonville firefighters more than 25 years ago, is set to be acquired byRestaurant Brands International Inc. in a $1 billion deal.
Restaurant Brands International, which also owns Burger King, Popeyes and Tim Hortons, announced the all-cash plan to buy Firehouse Subs Monday morning.
“Firehouse Subs is a special brand with a talented team, impressive culture and community focus that resonates with guests and closely aligns with our core values at RBI,"saidJosé Cil, Chief Executive Officer of RBI, headquartered in Toronto, Canada."We see tremendous potential to accelerate U.S. and international growth at Firehouse Subs with RBI’s development expertise, global franchisee network and digital capabilities."
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That projected growth will allow Firehouse Subs, through its Firehouse Subs Public Safety Foundation, to continue its mission to provide lifesaving equipment to first responders.
"Joining the RBI family of brands provides an energizing opportunity to assist more communities, not only across America and Canada, but around the globe," said Don Fox, Firehouse Subs CEO. "The donations we generate for our Foundation through our restaurants means changing and saving lives, so we can’t wait to accelerate our journey at home and around the world.”
The company will remain headquartered in Jacksonville and managed by Fox and Vincent Burchianti, its current chief financial officer. The sale is expected to close within two months.
Founded in 1994 by brothers Chris Sorensen and Robin Sorensen, Firehouse Subs is known for its hot specialty subs — like the Hook & Ladder, New York Steamer, Engineer and more—and firehouse-decorated restaurants. The chain now boastsnearly1,200 locationsin 46 states, including about 170 in Florida, as well as Canada and Puerto Rico.
Decision to sell a 'tough' one
The brothers thought long and hard about the decision to sell — setting a series of qualities and standards they wanted to see in a potential new owner.
Money wasn't the driving factor. Respect for the integrity of the brand, the employees and the community were essential. So, too, was a new owner's ability to sustain and grow the business,Robin Sorensen told the Times-Union Monday afternoon.
"It was definitely a tough decision," he said. "There definitely was a lot of emotion in it."
Several years ago, he said they decided there would be a time when they would have to consider what resources would be best and available to help Firehouse Subsnot just survive, but thrive.
"The driver was really resources.Chris and I are limited in what we can do to help Don and what we could do to support him," Sorensen said."We thought we're over 1,200 restaurants and that's really incredible doing from one to more than 1,200. We could see value in bringing a new owner in to bring new resources to the table to help us."
The brothers over the past five years established a list of criteriathey wanted in a new owner.
"The big decision for us was who would it be. We wanted someone who would commit to our list. We wanted Firehouse to stay in Jacksonville, we wanted all of our staff to stay and we wanted a company that would carry on the mission of our foundation," he said, noting it was a "tall order."
And most importantly, the new owner had to be interested "in keeping our culture and our great team," he said.
RBI fit the bill.
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The beginnings of Firehouse Subs
Like their father, the Sorensens were Jacksonville firefighterswhen they opened their firstFirehouse Subsrestaurantat Crown Plaza in suburban Jacksonville in 1994.
In a 2016interview with CNBC,Robin Sorensen said he and his brother had less than $100 in their checking accounts when they opened thatfirst restaurant.
"We started that first store on credit cards," Robin Sorensen told the Times-Union in 1999. "Borrowed ones at that."
Before opening their first store, the brothers spent two years planning their concept, including six months taste-testing meats of all different kinds andhiring operations and financial officers long before they were needed. They said their philosophy wasto be as forward-thinking with their resources as possible, rather than playing catch-up.
Even the look of their restaurants — with their firehouse decor — was carefully plannedso that customers would feel as if they were patronizing a chain eatery — even when there was only one store.
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"We wanted to look like we were a national chain," Chris Sorenson said in 1999. "We didn't want it to look like a mom n' pop."
Now, 27 years later, Firehouse Subs is a growing player within the $30 billion Quick Service Restaurantindustry in the United States. Its systemwide sales are projected to be about $1.1 billion this year.
In a statement, the Sorensens described the growth of the chain and the Firehouse Subs Public Safety Foundation.
"We don't think we could ever truly describe the journey other than it was the ride of a lifetime. The Firehouse Subs system employs more than 15,000 family members and supports hundreds of companies and industries that impact thousands. And of course, our proudest accomplishment, Firehouse Subs Public Safety Foundation. Thanks to your donations, such as buying pickle buckets and rounding up, we have donated 5,399 lifesaving grants to local heroes totaling more than $62.5 million."
They also thanked those that helped the company grow.
"To all of our headquarters staff and corporate restaurant employees, we thank you from the bottom of our hearts for all of your hard work and dedication to the Firehouse Subs brand, as well as your belief and support of the mission of Firehouse Subs Public Safety Foundation. It has been the honor of our lifetime to have worked with you. To our franchisees that invested and believed in us, we have no words. You are the reason Firehouse Subs exists."
Firehouse Subs founders not saying goodbye to restaurants
The Sorensen brothers will remain on the board of directors for the Firehouse Subs Public Safety Foundation. Robin Sorensen will the chairman of the board.
RBI welcomed the brothers' involvement and want to continue the work that they started with the foundation.
"My heart has been in philanthropy for a long time and the heart of Firehouse Subs is the foundation," Robin Sorensen said.
The brothersaren't ruling out the possibility of ultimately starting another restaurant someday, he said.
"Chris and I in the near future will probably look to make some investments within the industry and other industries. And if the right opportunity came along, I can see some local or regional brands could grab our attention," he said.
However, they're not looking to build a chain or big operation.
"It would just be something where we could come in and help develop it because we know and love the industry," he said.
Robin Sorensen alsosaid they're are proud to be born and raised in Jacksonville and to have built the brand in their hometown.
"One thing is, we're not retiring to an island anywhere," he said.
