When marketing whiz Josh Kern stepped into the role of interim CEO of SPB Hospitality in August 2022, he knew exactly what was at stake if he didn’t turn the company around and set it back on the right path, and failure wasn’t an option. He was tasked with uniting a diverse portfolio of restaurant brands under one roof and one cohesive vision, all while overcoming the challenges left in the wake of bankruptcy and a global pandemic. It was a balancing act, teetering between the immediate need for financial stability and the long-term mindset and goal of creating a thriving, people-centric company.
“It’s difficult in terms of not only coming out of resetting a company and restarting something from essentially scratch, and then having legacy brands, and then acquiring new brands … it’s this dichotomy of cross-culture challenges, and it’s real,” Kern says. “Trying to break down those barriers, to think as a collective, especially from a cultural standpoint, is a challenge.”
A quick history lesson: The multi-brand operator SPB emerged as a result of a Chapter 11 bankruptcy process. CraftWorks, the former parent company of Logan’s Roadhouse, Old Chicago, and several other brands, entered bankruptcy in March of 2020 with 261 company-owned stores and 77 franchises. Fortress Investment Group stepped in and acquired the group with a $93 million credit bid and formed SPB Hospitality in May of 2020, an incredibly turbulent time for the industry as COVID-19 caused restaurant closures and countless challenges.
The name SPB was originally a literal nod to the concepts it started out with—”Steak, Pizza, and Beer”—but has now been rebranded to align more broadly with the company’s overall mission, “Serving People Better,” which has also allowed the Houston-based operator room to expand into different segments and restaurant categories. That occurred with the merging of fast-food chain Krystal that spring, and when fine-dining restaurant chain J. Alexander’s entered the fold in September 2021. Kern describes J. Alexander’s as being at the “intersection of really refined hospitality and training and learning and development, and there’s a methodical process that’s been in place for quite some time.”
SPB’s diverse portfolio of brands now spans more than 500 units across nearly 40 states, including Logan’s Roadhouse, J. Alexander’s, Stoney River, Old Chicago Pizza & Taproom, and a collection of restaurant-brewery brands, including Rock Bottom Restaurant & Brewery and Gordon Biersch Brewery Restaurant. SPB also operates a collection of specialty restaurant concepts including ChopHouse & Brewery, Ragtime Tavern Seafood & Grill, and Seven Bridges Grille & Brewery.
UPDATE: SPB Hospitality Sells its Brewery Concepts in December
In September, the company acquired emerging concepts Amada, a three-unit Spanish tapas brand with restaurants in Philadelphia, Radnor, and Atlantic City, and Village Whiskey, which has one shop in Philadelphia. Both are creations of James Beard Award-winner and “Iron Chef” Jose Garces, who will remain involved with the brands and get to step back from day-to-day operations to focus more on the creative side.
Kern, a former marketing executive of Smashburger, American Blue Ribbon Holdings, and Quiznos, was serving as SPB’s president of concepts at this time, when the company was still coming out of the pandemic and “having to go through closing every single restaurant and essentially letting go of everybody in the company and trying to rebuild at a time when conditions didn’t really allow,” he recounts.
“You have to ask yourself really difficult questions of who can come back, and who can wear lots of different hats … and it was hard, because there were a lot of talented people that either didn’t get that call to come back, or they had moved on.”
Kern determined the essential elements for rebuilding were collaboration and transparency. Instead of leaning into traditional top-down management, he embraced an empathetic and people-first approach, recognizing that restaurant employees were reconsidering their career paths during the pandemic.
“And I credit the Fortress team that was allowing us and opening up their checkbook to get the dollars flowing, to be able to turn on these restaurants and get people back inside,” he notes. “So I think it was just that magic of a lot of collaboration happened at the right time.”
How to Create a Unified Culture
A key part of SPB Hospitality’s turnaround involved fostering a cohesive culture across diverse restaurant brands—without diluting each brand’s unique identity.
When it came to the culture at SPB that Kern inherited, he described the situation as simply backwards. “People were broken down. No one was really talked to like an adult. People weren’t transparent about the business, and then [no one was] really out there talking and getting inside of a restaurant,” Kern shared during a fireside chat at FSR’s NextGen Restaurant Summit in September. “It’s vitally important to just get in to restaurants … I think it’s just that personal touch. And I’m much more of an empathetic person, and I believe [in] having those conversations, trying to talk one-on-one.”
During weekly senior leadership meetings, Kern and his team take a look at the metrics for all SPB’s brands, and determine where things are going well and where they need to improve. “What can we learn from the concepts that are doing okay, to the ones that aren’t doing so hot? And for us, it’s just really hard because you have legacy brands—Old Chicago is from 1976, Krystal is now celebrating its 93rd birthday, and you have J. Alexander’s that’s 30-something years old. So it’s a matter of, how do you kind of interject that energy and stay passionate about it?”
Breaking down silos was also crucial. As a marketing-focused CEO, Kern had to address the “perceived favoritism” that can arise when some brands outperform others. To combat this, he focused on cross-training and encouraging employees to collaborate across concepts.
“I do believe that having the right people on the team is obviously incredibly vital, and it’s interesting when you start to acquire different concepts and different people come into the mix, the hardest thing is to try not to play favorites,” he continued. “You’ll have some folks that just love their brand so much it’s hard for them to cross over and spend time in a Rock Bottom or Old Chicago, because they know one of the other brands. So that has been a bigger challenge than I anticipated.”
Kern approached the challenge strategically; instead of forcing operators to focus on being part of SPB as a corporate entity, each brand was given the autonomy to shine while still sharing in SPB’s overarching values of service, purpose, people, and growth, and building business through flavors, moments, and memories. “Everyone is wearing the same flag, but we want to be brand-forward. We want to make sure our guests all understand that,” he added.
At the same time, the company’s power as a collective is spotlighted through the SPB Foundation, which aims to make a positive impact in the lives of employees and in the communities they live and serve; to date, over $6.6 million has been donated to community programs. Managed by the SPB Foundation, the HOPE Program’s mission is to ease the financial burden of team members who are experiencing a crisis situation. Over the past 23 years, the company has granted over $1.5 million dollars to team members in need.
“A strong foundation can significantly enhance a restaurant’s brand reputation. Customers who perceive a brand as socially responsible are more likely to become loyal patrons. Specifically, 84 percent of Gen Z states they would be more likely to purchase from a brand that gives back according to Fuse Marketing,” Ryan Russell, senior director of communications & cause marketing for SPB Hospitality, wrote in a column for FSR.
Logan’s Roadhouse, through the SPB Hospitality Foundation, has launched initiatives to support Toys for Tots, No Kid Hungry, K9’s for Warriors, and places a heavy emphasis on its restaurants hosting Give Back Nights for local 501c3 organizations. Logan’s has also worked with the GiftAMeal program, effectively linking customer photos to charitable outcomes. After scanning a GiftAMeal QR code at the restaurant, guests can take a photo of their food to trigger a restaurant-funded donation being sent to a local food bank to provide a meal for a neighbor in need. Additionally, guests can share their photos on social media platforms to contribute even more meals (+1 for each platform selected). The result is over 20,000 meals have been donated to local food banks and resulted in customers sharing positive posts and photos on social media.
“The synergy between marketing and philanthropy amplifies brand messaging and fosters deeper customer engagement. Customers are more likely to support brands that contribute to their communities, creating a virtuous cycle of positive impact and increased patronage,” Russell wrote. “These initiatives not only address critical community needs, but also create lasting positive associations with the brand, and oftentimes allows front line employees the chance to be directly involved with a charity they may not otherwise have had the chance to be involved with.”
SPB Hospitality’s commitment to a people-first culture also extends to its corporate operations, where flexibility and connection are key priorities.On the corporate team side, everyone is spread out across the country with Kern being based in Denver and SPB having support center offices in Houston, Atlanta, and Nashville, Tennessee. However, the company has fully embraced technology and hosts monthly video calls to ensure everyone can stay connected.
“No one is going to have to uproot their families and move anywhere. I do embrace how the modern way to work is these days, and so there will never be an edict out there, you must move to X city or lose your job, because then that’s not serving people better, that’s not doing anything other than dividing what we’re trying to do,” Kern explained.
How to Reinvent Brands and Elevate Quality
Reinvention is at the heart of SPB’s growth strategy—and for Kern, it always starts with the ability to listen to honest feedback from his team and trusted allies and respond accordingly. For Logan’s Roadhouse, the focus has been elevating the quality of ingredients while returning to its roots as a value-driven steakhouse. The revamp began in September 2021, when Logan’s remodeled a flagship restaurant in Houston with real mesquite wood (what the steaks are cooked over), signage that highlights its made-from-scratch rolls, oversized beer can flags and license plate artwork, and homages to its Texan roots, like neon-themed displays.
The next phase started nearly two years ago, when the brand’s director of operations came to the leadership team and basically said, “wake up, these steaks are terrible—they’re just not right for us,” Kern candidly shared during the fireside chat. That led to investing in better cuts and adjusting pricing with precision.
“We went on this deep exploration, changed partners, and now I think we have one of the best—certainly our sirloins are incredible. We’ve been really sensitive on price. We’ve used the scalpel versus just a broadline increase on those products, and we’re really leaned into being as competitive as we possibly can on the sirloins,” he explained.
The changes are already paying off. Guest satisfaction scores have improved, and that also contributed to increased team member morale and satisfaction. “What that started to do was lift those tides of ‘hey look, the team listened to us. We’ve seen quality improve,’” Kern added.
Once a signature of Logan’s, the brand decided to eliminate giving away peanuts to guests, another example of a change that has modernized the dining experience, plus led to cleaner restaurants. “You’re not constantly sweeping up [or having] people throwing things on the floor,” Kern said, plus the brand still serves free rolls to customers. “It used to be rolls and peanuts, and I think it was a $3 million hit to the bottom line that we’re giving away.”
Additionally, Logan’s Roadhouse has leaned into food and beverage innovation, with Shannan Hall, a 22-year veteran from J. Alexander’s, leading the charge for refreshing the bar program and introducing new cocktails. The brand also launched a “Grill Master Certification,” created and led by Senior Director of Culinary Luis Haro. The initiative includes mandatory on-site training for grill cooks and restaurant managers. Once completed, grill cooks are given the title “Master of the Flame.” The brand grades them on their ability to cook at different temperatures, grill 6-ounce sirloins, salmon, and other entrees, and also tests basic grill operational points, like cleaning, setting up a line, and communication skills with managers and other employees.
Haro joined Logan’s Roadhouse almost 28 years ago, and previously told FSR how he’s seen about 12 different people cycle though the title of CEO throughout his tenure. “It felt like the new CEO always brought a vision and we were changing directions. There were times years ago that a CEO would only last a year,” Haro said at the time. Thankfully, Kern—who shed the “interim” title and was officially promoted to full-time CEO in June 2023—seems to be sticking around for the long haul.
Haro works in tandem with other SPB culinary leaders such as Ian Dodson, who started his career as a kitchen coach with J. Alexander’s over 30 years ago before rising to senior vice president of culinary and beverage, and Nicholas Tzompanakis, vice president of culinary operations. That collaboration is key to the success of SPB’s culinary offerings, and one of Haro’s favorite parts of working at the restaurant group “If I see something via a supplier or an idea that I have, we bring it together and say hey, this is not going to work for Logan’s, but I can see this working in Old Chicago or Rock Bottom,” Haro said. “It’s very open communication and seeing what we all have and what works for our guests. That’s one of the things that I think we all know, that our guests are very different—from the J. Alexander’s guest to the Stoney River guest to the Old Chicago and brewery group.”
Dodson and Tzompanakis both brought their expertise from J. Alexander’s to the larger organization with a standout initiative called “Taste Plate,” a quality-check process where leaders such as general managers sample every single sauce and dish every day before service to ensure consistent flavor and presentation. Originally a hallmark of J. Alexander’s and Stoney River, this process is now being adopted across brands like Old Chicago, which recently overhauled its pizza program by switching to fresh dough.
The move transformed the guest experience and engaged employees with a newfound sense of ownership. “Before, they really weren’t doing that right—it was just the order comes in, the pizza gets fired. Now they’re really stepping back and looking at making pizzas before we even open to the public,” Kern shared.
“Taking those pieces across all the different concepts has been very helpful, but it does get hard,” he added. “If you come in and change a policy or procedure, people can react to it differently. And we’ve seen some challenges out there, and we probably deal with them every single day, but again, it comes back to having that discipline to really lean in on, when we’re doing something, that we’re doing it together, and we’re always telling the why behind something. That’s probably been [one of] the biggest pieces—how do you explain it and be real about it at the same time.”
How to Leverage Shared Services
One of Kern’s most effective strategies for scaling SPB Hospitality has been leveraging shared services and strong buying power to streamline operations. From bulk purchasing of potatoes and bacon to negotiating better vendor contracts, SPB has maximized efficiencies without compromising quality. This model has allowed SPB to weather economic challenges while maintaining high-quality standards.
Producing and printing menus for all the different concepts is one area SPB has optimized, as well as integrating tech for back-office functions and real estate planning. Kern emphasizes the importance of data-driven decision-making, using advanced analytics to identify prime locations for new openings and to understand market dynamics better. This data-driven approach allows the company to make informed decisions about which concepts to grow, and how to remain adaptable in a volatile market. “We can build these databases of, what made this so successful in this trade area, and what didn’t?” Kern says. “Smaller towns, Logan’s tends to do a little bit better, off the interstates. Really understanding [our] value-centric guest, [and] leaning into that has been critical for us.”
But some shared services can be a headache to implement. After an acquisition or merger, there are so many different puzzle pieces to fit together, Kern noted, and that takes time. One example of a work-in-progress: Across SPB’s portfolio, there are four different point-of-sale systems, “and it’s just such a headache,” he said. “It’s so hard in terms of all that data coming in … there’s just so much that’s coming at you, and how do you streamline all that?”
Kern also warned against adopting a one-size-fits-all approach. Each brand in SPB’s portfolio has unique needs, and requires thoughtful strategy when it comes to any changes. For instance, Krystal needed significant upgrades from drive-thru technology to asset maintenance. “We inherited everything that was broken on that brand in terms of, you’ve got restaurants that were built in the ‘70s, we had menu boards that didn’t work, we had dining rooms that weren’t open,” Kern said. “We’ve kind of gone back to embracing what we are, what we’re all about.” SPB’s team worked to align the brand with its shared services framework, which has already started yielding positive results, including improved sales and better franchisee relations.
His advice for other operators looking to leverage shared services, whether it’s a restaurant group or upstart franchise concept, is to take a closer look at vendor contracts, and evaluate what each partner is bringing to the table. “Throughout our charter, and we still do it today, we have so many different vendor partners out there, and it stems from produce to proteins to dairy to PR and point-of-sale systems,” Kern advises. “I think it’s really paying attention to what you have, because a lot of times, you’ll have a partner that can create something, whether it’s on the technology side of things, or if it’s on the communication side of things, where you don’t necessarily have to engage another entity to get something accomplished.”
Another key piece is encouraging team participation and getting people invested in what you’re doing. Whenever Kern is implementing anything new, he tries to get as many fingerprints on it as possible, versus just saying “this is what we’re going to do.”
“SPB is incredibly complicated in terms of what we do every day, and being multi-concept, you’ve got to get folks that just really understand how to get this job done,” he adds. “You not only have this crazy restaurant industry, and then you have multi-concepts, and then you have a company that’s in lots of different cities and we’re not always together—you’ve got to spend the time hiring the right people. I lean towards people—it’s the most important part of what we do every day. So be careful about who you hire and how you hire.”
How to Grow by Betting on New Concepts
SPB is doubling down on the success of its upscale-casual concepts, which seem to be getting the most consistent traction, Kern notes. That means J. Alexander’s and Stoney River are poised for major growth in the next three years into Huntsville, Alabama, New Jersey, three locations in the Dallas metroplex area next year, and in Chandler, Arizona. “And part of it is, not only is that brand just doing okay, there’s an unmet need that’s out there, and we can certainly see it from a real estate perspective. When we talk to developers, they want these brands,” Kern says. “It opens doors on that real estate side.”
Rather than relying solely on established legacy brands, the company is also betting on chef-driven concepts with immense creative potential—but it’s a calculated gamble that showcases SPB’s forward-thinking mindset. The company’s recent acquisition of Amada and Village Whiskey marks a bold step into this new era of growth and innovation.
Operating as Ideation Hospitality, 3BM1 sold the two concepts to SPB for an undisclosed amount. Scott Campanella, COO of Ideation Hospitality, will step into the role of SVP of SPB over the Garces products and growth opportunities. Bringing Campanella on board introduces expertise that SPB previously lacked, particularly in licensing and developing nontraditional locations. Kern finds the prospect of expanding through partnerships with hotels, college campuses, and airports particularly exciting. Currently, SPB has units like ChopHouse and Gordon Biersch in six airports nationwide, and Campanella’s extensive background makes further expansion in these areas even more promising.
Amada, with its Spanish tapas concept, fits perfectly into this strategy. As dining preferences shift towards social, small-plate dining, SPB sees a major opportunity to bring this experience to new markets, and try to stand out in a category that isn’t already crowded with chains. By focusing initial growth on the Sun Belt, the company is not only taking advantage of a growing population but also aligning Amada’s warm, Mediterranean cuisine with climates where it will resonate most. The goal is to open two to three new Amada locations annually, establishing a steady but deliberate expansion.
Village Whiskey, with its emphasis on gourmet burgers and craft cocktails, provides an adaptable model that can succeed in both urban and suburban settings. SPB’s shared-services framework further enhances the appeal of these new concepts, as the company can efficiently scale operations while maintaining high-quality standards.
“Those are scary, right? Unproven concepts, new things, and will those gravitate with guests? If you don’t do it, you’ll never know,” Kern says. “So I think that’s certainly our charge and our charter, and that’s what I push constantly, and to do it smartly.”
The company will take a dual approach to growing by acquiring smaller, emerging concepts with great average unit volumes and potential, as well as launching completely new concepts. By bringing James Beard Award-winning chef Jose Garces into the fold, SPB aims to leverage his culinary expertise to inspire new menu ideas and brand innovations across the portfolio. Kern also noted that consumer preferences are shifting toward Latin, Asian fusion, and Mediterranean-influenced flavors. “We know there’s an opportunity there,” he says.
“The fortunate thing about SPB is that we’re large enough, where we can test stuff and prove it. We can look at a system, we can look at an LTO, we can look at a new product, we can look at a new concept, and we can make those changes. We just can’t be afraid of ourselves,” Kern says. “The only thing that can stop us is ourselves getting in the way. That’s something even at the executive level that I do constantly push, and I just don’t want to be afraid to fail.”
Ultimately, Kern’s vision for SPB is rooted in balance: combining operational efficiency with a relentless focus on quality and culture. The company’s resilience, from emerging out of bankruptcy to becoming an industry leader, is a testament to this approach. As SPB looks to the future, the company’s playbook remains clear: invest in creativity, embrace change, and never lose sight of the people who make it all possible.
