Flat Out Crazy Restaurant Group Lands a Combined $12 Million in Funding, Ear-Marked for Growth

CHICAGO, May 11 /PRNewswire/ -- Chicago-based Flat Out Crazy Restaurant Group, the parent company of Stir Crazy Fresh Asian Grill and FlatTop Grill restaurants, has completed a $3 million Senior Revolving Credit Facility by U.S. Bank and a $5 million Mezzanine Growth Loan by The HillStreet Fund IV. These figures add to the $4 million in equity raised with the August 2009 merger of the two Asian restaurants that formed Flat Out Crazy. The newly combined $12 million in funds will allow Flat Out Crazy Restaurant Group to aggressively grow its two brands, increasing by more than 50% the size of its restaurant portfolio by the end of 2011.

Through its two restaurant brands, Flat Out Crazy Restaurant Group operates 28 restaurants in eight states, in both urban and suburban settings. Stir Crazy, the group's full-service casual destination, combines with fast casual FlatTop Grill to deliver revenues in excess of $60 million per year for Flat Out Crazy Restaurant Group. The company employs more than 2,000 people and serves more than two million guests annually with their complementary Asian restaurant brands. The $12 million in new loans and equity will provide the funding and working capital to open a combined 15 new units through 2011. This year, and next, will mark the West Coast expansion of the two restaurants into Utah, Colorado, New Mexico, Texas and Nevada, as well as continuing development in the Midwest and East. Currently, the restaurants operate in Florida, Indiana, Illinois, Michigan, Missouri, Ohio, Wisconsin, and New York.

"The $12 million in loans and equity that have been raised by Flat Out Crazy demonstrates the strength of our restaurant brands and the confidence our financial institutions and equity partners have in the company and our team," said Frederic H. Mayerson, chairman and CEO of Flat Out Crazy Restaurant Group. "With the purchase of Stir Crazy at the end of 2006 and then the acquisition of FlatTop Grill in mid-2009, we are a stronger and more profitable entity, which now affords us the opportunity to continue our national expansion."

"This strategic funding provides the Flat Out Crazy Restaurant Group with the resources necessary to grow the brand and double the number of dining locations. We are confident that their national expansion will be dynamic and are very pleased to be part of the Flat Out Crazy success story," said Pam Paley, senior vice-president, The Private Client Reserve at U.S. Bank.

Flat Out Crazy has a seasoned management team led by President and COO Greg Carey and CFO Matt Wilber.

"Our new capital enables us to move forward with our expansion plans and also improve our profitability," said Matt Wilber, CFO, Flat Out Crazy Restaurant Group. "Vendors can now provide us larger volume-based deals resulting in significant savings that go directly to the bottom line."  

Both Stir Crazy and FlatTop Grill were founded in Chicago in 1995. The Walnut Group, a private equity firm located in Cincinnati, purchased Stir Crazy at the end of 2006. At the end of August 2009, Stir Crazy acquired FlatTop Grill to form Flat Out Crazy. While complementary, the two restaurant brands serve different segments of the Asian restaurant market: fast casual and full-service casual. Both Stir Crazy Fresh Asian Grill and FlatTop Grill have retained their names as well as their individual models; they continue to be run independently of one another while at the same time the parent company can look to each for best practices, people development, efficiencies and enhancements.

"This coming together of two great Asian restaurants has been as good of a marriage as we had hoped it would be," said Greg Carey, president and COO of Flat Out Crazy Restaurant Group. "Since 2007, we have opened eight new Stir Crazy and FlatTop Grill locations. In less than two years we see our total number of locations jumping ahead fifty percent as Stir Crazy and FlatTop Grill become leaders in the growth of the Asian food segment of the restaurant industry."

Since its inception, Stir Crazy Fresh Asian Grill, with its vibrant atmosphere and focus on fresh, quality ingredients and bold flavors, has won a number of accolades including Nation's Restaurant News naming it a "Hot Concept," the International Council of Shopping Centers, Inc. bestowing it with the coveted "Hot Retailer" award, Interiors Magazine awarding it "Best Restaurant Design," as well as winning "Restaurant Design of the Year" by Restaurants and Institutions, and being named "Concept of Tomorrow" by Restaurant Hospitality Magazine. Stir Crazy offers a diverse menu of Chinese, Thai, Vietnamese and Japanese food. Guests have the option of ordering off of the extensive menu or creating their own dishes at the popular "Market Bar" where fresh vegetables, noodles, rice and eight homemade sauces abound, and are then combined with the guest's choice of protein for a made-to-order meal.

FlatTop Grill is a neighborhood create-your-own stir-fry restaurant featuring fresh vegetables, a variety of proteins and homemade sauces. Guests can enjoy multiple trips through "The Fresh Food Line" and create unique dishes – all for one value oriented price. From the beginning, when FlatTop was listed by Technomic as a "Best Emerging Concept," the restaurant has been a favorite with guests, as evidenced by  local market awards and the 2009-2010 Silver Platter Award for "Favorite Place to Dine" awarded by "Food Industry News."

For more information about Stir Crazy Fresh Asian Grill and FlatTop Grill visit www.flatoutcrazy.com.

About U.S. Bank

U.S. Bancorp (NYSE: USB), with $282 billion in assets, is the parent company of U.S. Bank, the fifth largest commercial bank in the United States. The company operates 3,025 banking offices in 24 states and 5,312 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.

About The HillStreet Funds

The HillStreet Funds are private investment partnerships based in Cincinnati. The HillStreet Funds manage $160 million and provide junior capital to middle market companies in many industries on a nationwide basis. For more information, please contact Chris Meininger at (513) 412-3682.

SOURCE Flat Out Crazy Restaurant Group