The Keg
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The Keg is a Canadian-owned chain of steakhouse restaurants and bars operating in both Canada and the United States. The first location, originally named "The Keg and Cleaver" restaurant, was founded in 1971 by George Tidball in North Vancouver, British Columbia. By February 2018, The Keg had expanded to 160 locations in Canada and the United States, when Canadian food industry giant Cara Operations (now known as Recipe Unlimited) purchased the chain for $200 million from then- owners David Aisenstat (49%) and Fairfax Financial (51%). The chain is also known as The Keg Steakhouse + Bar.
History
The company was founded in 1971 in North Vancouver, British Columbia as The Keg 'n Cleaver by George Tidball at one small, downstairs location in a former industrial building in the Moodyville area of lower Lonsdale. Today it operates in nine provinces (excluding only Prince Edward Island) and five American states.<ref>The Keg, Franchise Information Template:Webarchive</ref>
Several Keg locations operate in repurposed historic buildings. Examples of this are the Keg Mansion in Toronto and the Keg Manor at the Maplelawn Estate in Ottawa. The Downtown Winnipeg location opened in 1975 as The Keg and Cleaver in the former Hudson's Bay Company Garage on Garry Street, where it still operates today.<ref>Template:Cite web</ref> Other notable heritage restorations are the Keg in Kamloops, British Columbia, which was a CN Station; and in New Westminster, British Columbia, formerly the city's CPR station. The Old Strathcona location, restored and opened in Edmonton, Alberta, three years after Tidball opened the first Keg. It was originally built in 1912 as the Scona Apartments and Scona Garage, one of the earliest automobile sales and service locations in that city. This location has since closed.<ref>Template:Cite web</ref> Template:Clear
Operations
The Keg's financial and physical operations have been managed by David Aisenstat for a number of years.<ref name=Global>Template:Cite news</ref> The restaurants operated as Keg Restaurants Ltd. (KRL), with Aisenstat involved in selling to the British firm Whitbread PLC in 1987.<ref name=Global/> In 1997, Aisenstat arranged financing and purchased 100% of KRL back from Whitbread.<ref name=Global/>
In 2002, KRL created the Keg Royalties Income Fund, sold through a public offering on the Toronto Stock Exchange, trading as Template:Tsx. The Fund owns the trademarks and intellectual property of "The Keg", and receives an annual royalty of 4% of gross sales for restaurant locations in the Royalty Pool. KRL kept a 99-year license to use the name "The Keg"; it also provided management services to The Keg Royalties Income Fund at no cost as part of its long-term royalty and licensing agreement. The Fund's creation presented the first opportunity for the public to trade in any portion of The Keg group of companies, which were previously fully private.
On February 4, 2014, Aisenstat sold 51% of his private holdings in The Keg to Fairfax Financial, a publicly traded Canadian holding company.<ref>The Keg Royalties Income Fund - Annual Information Form - March 29, 2017 - SEDAR Template:Webarchive</ref>
On January 23, 2018, it was announced that Canadian food industry giant Cara Operations was purchasing KRL for $200 million.<ref name="Global" /><ref name=CBC>Template:Cite news</ref> The deal closed in February 2018,<ref name=CNW>Template:Cite news</ref> with Fairfax Financial and David Aisenstat sharing $105 million plus 3.8 million Cara subordinate voting shares.<ref name=Global/> Aisenstat joined Cara's board of directors<ref name=CNW/> and assumed executive oversight of the higher-end brands within the 19 restaurant chains then held by Cara.<ref name=Global/> Cara also announced that the acquisition had prompted the company to change its own name,<ref name=CBC/> confirming on May 10, 2018 that it would be renamed Recipe Unlimited Corporation.<ref name=CNW/>
On May 5, 2025, the Keg Royalties Income Fund entered into a letter of intent under which Fairfax Financial would acquire all the issued outstanding units of the fund for $18.60/unit. The largest holder of fund units (other than those owned by Fairfax) supports the proposed transaction.<ref>Template:Cite web</ref>
See also
References
External links
- Recipe Unlimited
- Companies based in Richmond, British Columbia
- Restaurant chains in Canada
- Restaurant franchises
- Economy of the Western United States
- Regional restaurant chains in the United States
- Companies listed on the Toronto Stock Exchange
- Steakhouses
- Restaurants established in 1972
- 1972 establishments in British Columbia
- 2018 mergers and acquisitions
- Herb Capozzi