Cotton Patch Cafe acquired by Local Favorite Restaurants
The two Texas-based restaurant companies form a group of 10 brands with nearly 100 locations in the Lone Star State.
June 30, 2026
Cotton Patch Cafe did not have to go far to find its new owner.
The Southlake, Texas-based, 46-unit casual-dining chain has been acquired by Local Favorite Restaurants, a multiconcept operator located about 30 minutes away in Dallas.
The seller is Altamont Capital Partners, the Bay Area private-equity firm that acquired Cotton Patch in 2015. Financial terms were not disclosed.
Cotton Patch will join Local Favorite’s family of nine brands and 50 locations across Texas, including El Fenix Mexican Restaurant, Snuffer's Restaurant & Bar, Meso Maya, Taqueria La Ventana, Wok Star Chinese, Twisted Root Burger Company, Campuzano Mexican Food, and Village Burger Bar.
Cotton Patch CEO Brandon Coleman will become CEO of the company, overseeing all of its brands. Local Favorite founder Mike Karns will continue in his role as “free-range creative,” setting the vision for the group as it enters a new phase of growth.
In a press release, Coleman said the deal will help fuel Cotton Patch’s expansion into new markets in the state while keeping the local feel and Texas heritage customers have come to expect from the brand. All but three of Cotton Patch’s restaurants are in Texas; It has two in New Mexico and one in Oklahoma.
“I'm thrilled to join Mike and the Local Favorite team,” Coleman said in a statement. “What excites me most is the chance to build on the collective momentum and continue writing the story of great Texas brands.”
Cotton Patch was founded in 1989 in Nacogdoches, Texas, and focused on comfort foods like chicken-fried steak and meatloaf, made from scratch. It grew steadily over the next 25 years, and accelerated under Altamont, peaking at 56 locations before the pandemic struck in 2020.
It struggled in the ensuing years with traffic declines, and Coleman was hired in early 2024 to help turn things around after a brief stint as CEO of TGI Fridays. He worked on fixing the company’s culture and improving the brand’s value, lowering prices on some items and adding value meals for $9.99. Cotton Patch has since delivered six straight quarters of same-store sales and traffic growth.
It did close two restaurants in 2025, and systemwide sales declined 4.5%, to $101.3 million, according to Technomic data.
Karns, a real estate developer and former director of real estate for Cicis Pizza, founded Local Favorites in 2008 with the acquisition of El Fenix. He later bought Snuffer’s and Village Burger Bar and also created concepts such as Meso Maya, Taqueria La Ventana, and Tulum.
About the Author
Joe Guszkowski
Senior editor, Restaurant Business
Joe Guszkowski is a senior editor with Restaurant Business covering technology and casual-dining chains.
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