Introduction
Fogo de Chao is a Brazilian steakhouse chain that has been around since 1979. The chain has grown to include more than 40 locations in the United States, Brazil, Mexico, and the United Arab Emirates. Now, Fogo de Chao is looking to expand even further, with plans to open more than 100 locations in the next five years. With its unique blend of Brazilian flavors and traditional steakhouse fare, Fogo de Chao is sure to become a favorite among steak lovers everywhere. In this article, we’ll take a look at Fogo de Chao’s grand plans for expansion and what it means for the steakhouse industry.
Steakhouse Chain Fogo de Chao Has Grand Plans to Be Everywhere Soon
Fogo de Chao, the Brazilian steakhouse chain, is on a mission to become a global powerhouse. The company, which has been around since 1979, has been expanding rapidly in recent years, opening new locations in the United States, Mexico, and Brazil. Now, the company is looking to expand even further, with plans to open new locations in Europe, Asia, and the Middle East.
Fogo de Chao is known for its unique dining experience, which features a variety of meats cooked over an open flame. The restaurant also offers a wide selection of side dishes, salads, and desserts. The chain has become popular with diners looking for a unique and flavorful meal.
The company’s expansion plans are ambitious, and they are looking to open up to 50 new locations in the next five years. This would bring the total number of Fogo de Chao restaurants to more than 200. The company is also looking to expand its presence in the United States, with plans to open up to 10 new locations in the next two years.
Fogo de Chao is also looking to expand its menu offerings, with plans to add more seafood and vegetarian options. The company is also looking to add more international flavors to its menu, with plans to introduce dishes from countries such as Argentina, Peru, and Chile.
Fogo de Chao is an exciting company to watch, and its ambitious expansion plans could make it a global powerhouse in the restaurant industry. If the company is successful in its plans, it could become a major player in the global restaurant scene.
In search of a classier chain restaurant? Look no further than Fogo de Chao. The Brazilian steakhouse chain may boast over 50 domestic locations and hundreds of millions in revenue, but the dining experience is one of a kind. The good news is more locations are on the way, a lot more if the company ends up expanding as much as it wants to.
Known for a wide variety of steaks and meats cooked churrasco-style on skewers and then carved at the table by chefs, Fogo de Chao has a whole lot of momentum heading into 2023 and a planned IPO. The chain anticipates having at least 300 locations on U.S. soil eventually—that’s nearly 6 times its current restaurant count of 53!
Last month the Texas-based brand updated its federal filing documents for 2022, and what a year it was for Fogo de Chao. Overall revenue was $517 million for the 12 months ending in Q3 of 2022, representing a year-over-year increase of just under 43%. Average unit volume (AUV), meanwhile, bumped up to $10.1 million in comparison to $7.9 million last year.
Sign up for our newsletter!
Fogo de Chao’s exceptional AUV this year is worth harping on for a moment. Only two other casual dining brands, The Cheesecake Factory and Carmine’s, boasted AUVs higher than $10 million last year.
Restaurant traffic also increased 12.3%, while same-store sales grew by 16.4%. Besides 2020, Fogo de Chao has been on an impressive streak of seven straight years showing transaction growth.
When the steakhouse brand first announced plans to go public late last year, it came as somewhat of a surprise considering Fogo de Chao already went public once before in 2015. Back then, the chain failed to attract investors and was ultimately sold to private-equity group Rhone Capital for $560 million in 2018.
It’d be hard to be anything but optimistic about the chain today, however, as 2022 also saw six new corporate restaurants and one international franchised location open—and four more new restaurants are scheduled for Q4. The chain says these new restaurants are exceeding expectations, fueling confidence for ambitious expansion plans moving forward.
There is still no official date for Fogo de Chao’s IPO. But, until then, customers can always try up to 16 different meats in an all-you-can-eat format for a fixed price starting at $54.95. Fogo de Chao also introduced a new bar menu earlier this year featuring more “casual” dishes like lobster and shrimp tacos folded in Napa cabbage leaves.
John Anderer