Quaker Steak Acquired By TravelCenters Of America

TravelCenters of America has purchased Quaker Steak & Lube’s restaurants and related assets for approximately $25 million.

Founded in 1974 in Sharon, Pa., Quaker Steak & Lube has more than 50 locations across 16 states. TA operates 500 full- and quick-serve restaurants, principally located in 253 full-service travel centers and 184 c-stores in 43 states. In addition to TravelCenters of America, the company’s locations operate under the TA, Petro Stopping Centers and Petro brand names; TA c-stores operate principally under the Minit Mart brand name.

Greg Lippert, CEO of Quaker Steak & Lube, said, “TA has stated its desire to use the existing company and franchisee Quaker Steak & Lube locations that it acquires as a core around which to expand Quaker Steak & Lube into a nationally recognized brand.”

Tom O’Brien, TA’s CEO, said his company plans to make Quaker Steak & Lube a nationally recognized restaurant brand through store conversions and franchising. “By converting some of our existing full-service restaurants to The Lube, we will enhance the variety of food and hospitality options that our travel centers already provide to professional drivers, and at the same time expand the awareness of Quaker Steak & Lube. Also, we expect to expand The Lube’s existing franchise program as well as its company-operated restaurants separate from our travel centers.”

Quaker Steak & Lube had struggled in recent years and, as part of the deal, submitted a bankruptcy filing that included the asset purchase and $2 million debtor in possession financing agreements with TA. The agreements are subject to bankruptcy-court approval, which is expected in early 2016, and other conditions.