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Habit Restaurant consider public launch

  • Habit Restaurants is considering an IPO to raise $75M to $100M in working capital.
  • The company owns the Habit Burger Grill hamburger chain.
  • Habit Burger drew some notice recently when it outranked In-N-Out Burger and Five Guys in a Consumer Reports Survey.
Comments (3)
  • phildevoyd
    , contributor
    Comments (118) | Send Message
     
    We have an outlet near us. We go 2 or 3 times a month. When they opened, you could not get near the place. Now, 3 months later, it is not crowded at all. It's a labor intensive operation. They are paying slightly above min wages, and are hiring.
    1 Aug, 03:09 PM Reply Like
  • phildevoyd
    , contributor
    Comments (118) | Send Message
     
    And they create a lot of smoke. That could be a problem in some metro areas.
    1 Aug, 03:11 PM Reply Like
  • King Rat
    , contributor
    Comments (648) | Send Message
     
    That smoke they create is free marketing. Even in California few complain about the smoke, or at least while I was there I never heard a complaint or read of one in an editorial. Not too many of their employees are single wage earners for big families. Most look like high school or college students for whom minimum wage or slightly higher is adequate (as it was for me). As with In N Out they seem like a well-run private company slowly expanding their business. They are slightly higher end than In N Out so less traffic is to be expected.

     

    The question is why they would want to go public because doing so would not provide any competitive advantage. That leads me to believe either they really need to pay off a lot of debt or just want to ride El Pollo Loco's coattails for some quick cash.
    1 Aug, 04:10 PM Reply Like
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