BT Brands, Inc. (BT Brands) owns and operates various restaurants in the eastern two-thirds of the United States.
As of March 1, 2024, including its partially-owned Bagger Dave’s business, the company operated various restaurants comprising the following:
Seven Burger Time fast-food restaurants and one Dairy Queen franchise located in the North Central region of the United States, collectively (‘BTND’), a Sioux Falls, South Dakota location was closed in February 2024;
Bagger Dave’s Burger Tav...
BT Brands, Inc. (BT Brands) owns and operates various restaurants in the eastern two-thirds of the United States.
As of March 1, 2024, including its partially-owned Bagger Dave’s business, the company operated various restaurants comprising the following:
Seven Burger Time fast-food restaurants and one Dairy Queen franchise located in the North Central region of the United States, collectively (‘BTND’), a Sioux Falls, South Dakota location was closed in February 2024;
Bagger Dave’s Burger Tavern, Inc., a partially owned affiliate, operates six Bagger Dave’s restaurants in Michigan, Ohio, and Indiana (‘BDVB’);
Keegan’s Seafood Grille in Indian Rocks Beach, Florida (‘Keegan’s’);
Pie In The Sky Coffee and Bakery in Woods Hole, Massachusetts (‘PIE’).
Village Bier Garten is a German-themed restaurant, bar, and entertainment venue in Cocoa, Florida (‘VBG’).
Dairy
The company’s Dairy Queen store is operated under a franchise agreement with International Dairy Queen. Effective October 17, 2023, the company agreed with International Dairy Queen to sell the business. Under the terms of the agreement with International Dairy Queen, the company will continue to operate the location during the six-month period it plans to sell the business.
The company’s principal strategy is acquiring multi-unit restaurant concepts and individual properties at attractive earnings multiples. In fiscal 2023, it continued to evaluate business opportunities, having deployed a portion of its November 2021 public offering in 2022, acquiring three operating restaurant properties. The company operates the acquired businesses with a shared central management organization. Additional elements of the company’s growth strategy encompass increasing sales, and efforts to boost brand awareness.
Restaurants
Burger Time
Burger Time restaurants feature a variety of burgers and other quick-serve foods. The company’s juicy, flame-broiled burgers, called ‘Bigger Burgers,’ are made with approximately 25% more meat and are larger in diameter than its competitors' typical quarter-pound burger offerings. The company’s burger patties are produced to its specifications by its supplier. It prepares each burger to a customer’s order and serves it hot and fresh. Other entrees include chicken sandwiches, pulled pork sandwiches, and chicken tenders. The company offers an array of traditional and signature sides, many of which have evolved into regional favorites. It also offers other reasonably priced food and beverage items. From time to time, the company offers specialty sandwiches and wraps at competitive prices. Its limited menu is designed to deliver quality across all products, combining a high taste profile and speedy delivery. The Burger Time brand appeals to a broad spectrum of consumers. The company caters to consumers who appreciate the size and variety of its burgers and the value of its Bigger Burger, combined with the speed and efficiency provided by its single and double drive-thru windows. Subject to seasonal and local conditions, the company’s restaurants are generally open seven days a week from 10 a.m. until 9 or 10 p.m., depending on the time of year. It offers online ordering through its website with curbside delivery. Burger Time serves the drive-thru and take-out segment of the restaurant industry.
The company’s Burger Time restaurants are in Minnesota, North Dakota, and South Dakota. The company owns the real estate on which its Burger Time restaurants are situated. In 2023, the company leased the property for a Sioux Falls, South Dakota location, which it closed in February 2024.
The company’s Burger Time units are free-standing facilities with single or double ‘drive-thru’ and walk-up service windows. The menu, store layout, and equipment are designed to work together to offer exceptional food with fast service times. This integrated design allows for maximum food output with minimal labor.
The company also focuses on food safety and sanitation, employment laws and regulations, and systems.
The company purchases most of its food, paper, packaging, and related supplies for its Burger Time restaurants from Sysco Corporation, the nation’s largest distributor of food products. Sysco distributes these supplies to the company’s restaurants on a frequent and routine basis.
Dairy Queen Franchise
In October 2015, the company acquired a 99% ownership interest in a Dairy Queen (‘DQ’) franchise in Ham Lake, Minnesota. The franchise’s remaining 1% ownership interest is owned by the General Manager, with specific DQ qualifications, and whose ownership is required under the operating agreement with the franchisor. The company is party to a franchise agreement with DQ that, among other things, restricts its menu offerings to the established DQ menu and limits its flexibility. It is prohibited from selling non-DQ-approved items at this franchise location and may not market this restaurant as a part of Burger Time. The company’s Dairy Queen store is operated under a franchise agreement with International Dairy Queen (‘IDQ’). Effective October 17, 2023, the company agreed with IDQ to sell and exit the business.
Keegan’s Seafood Grille
On March 2, 2022, the company acquired substantially all the assets of Keegan’s Seafood Grille, Inc. (‘Keegan’s’), an operating restaurant located in Indian Rocks Beach, Florida. Keegan’s Seafood Grille has operated in the same location for over 35 years, serving the Clearwater, Florida market. The company acquired the ‘Keegan’s Seafood Grille’ tradename and website and plans to continue to operate as Keegan’s Seafood Grille.
Keegan’s is a family-friendly casual restaurant located directly across the street from the beach. The establishment’s award-winning dishes are made in-house using the freshest local ingredients. Keegan’s motto is ‘Eat Fresh and Eat Wild.’ Keegan’s is known for daily fish specials, innovative seafood dishes, and excellent service. The restaurant also offers a selection of beer and wine. The restaurant features indoor and outdoor dining options, is open daily for lunch and dinner, and offers take-out and curbside pickup options.
Pie In The Sky Coffee and Bakery
On May 11, 2022, the company acquired the assets of Pie In The Sky Coffee and Bakery (‘PIE’), a coffee shop and bakery restaurant located near the Steamship Authority ferry terminal in Woods Hole, Massachusetts. The company acquired the ‘Pie In The Sky’ tradename and the piecoffee.com web address as part of the purchase.
PIE has served the local community and ferry travelers to Martha’s Vineyard for nearly forty years. PIE serves a variety of breakfast and lunch sandwiches prepared on store-baked bread; pastries, soups, and salads are all freshly made on-site. In addition, the company offers patrons freshly roasted coffee beverages, smoothies, and brand merchandise. The store is open seven days a week, year-round, except Christmas.
Village Bier Garten
On August 4, 2022, the company acquired substantially all of the assets, including trade names and social media accounts of Von Stephan Village Bier Garten. It has rebranded the business as Village (‘VBG’), a German-themed, family-friendly casual restaurant and bar concept in Cocoa, Florida. VBG features authentic German food and imported German beers combined with regular entertainment, creating an entertaining atmosphere and delivering a memorable guest experience. The restaurant offers indoor seating and access to an outdoor shared seating area where patrons eat and enjoy live entertainment most evenings.
Bagger Dave’s Burger Tavern
In June 2022, the company acquired common stock of Bagger Dave’s Burger Tavern, Inc. (‘BDVB’), initially representing 41.2% ownership. In 2024, it was reduced to 39.6% as a result of a sale of newly issued shares by BDVB. BDVB owns and operates various Bagger Dave’s restaurants. Bagger Dave’s is a casual restaurant and bar concept providing an inviting, entertaining atmosphere specializing in burgers, tavern-style pizzas, hand-cut fries, local craft beers, milkshakes, salads, and other items. BDVB opened its first location in Berkley, Michigan, in January 2008 and operates some restaurants in Michigan, including in Ft. Wayne, Indiana, and in Centerville, Ohio.
Marketing and Advertising
The company’s Burger Time restaurants offer an online ordering capability and curbside delivery program through the BTND website, and it expects to implement online ordering at all of its businesses. The company emphasizes direct database marketing supplemented by social media tools to promote its brand and local stores.
Growth Strategy
The company is seeking to increase value for its shareholders in the food service industry. The company's strategy is to acquire restaurant concepts and individual properties at attractive earnings multiples. Other key elements of the company’s growth strategy encompass increasing same-store sales and introducing a campaign to boost brand awareness.
As the company develops and extends its business into new food concepts and geographic areas, the company is creating dual concept locations, allowing for two or more of its brands to share physical assets; offering third-party (e.g., Uber Eats) and local delivery services; entering into licensing agreements allowing the third-party sale of its products; and employing direct database marketing, including social media, to drive business.
The company's strategies also include growth through acquisitions, increasing sales, and increasing brand awareness.
Trademarks and Service Marks
The company has registered 'It's Burger Time' with the United States Patent and Trademark Office.
Seasonality
Seasonal factors and the timing of holidays cause the company’s revenue to fluctuate from quarter to quarter. The company’s BTND revenue is typically lower in the first and fourth quarters (year ended December 2023) because of winter weather. PIE is highly seasonal, with a significant portion of its business occurring during summer. The company’s Florida locations reach peak revenue during the winter travel season.
Regulation and Compliance
The company is subject to the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986, and various federal and state laws governing such matters as minimum wages, overtime, unemployment tax rates, workers' compensation rates, citizenship requirements, and other working conditions.
The company is also subject to the Americans with Disabilities Act, which prohibits discrimination based on disability in public accommodations and employment.
History
BT Brands, Inc. was founded in 1987. The company was incorporated in Delaware in 2016.
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