Cotton Patch Cafe (“Cotton Patch” or the “Company”), the beloved restaurant brand serving scratch-made Texas comfort food, today announced that Local Favorite Restaurants (“Local Favorite”), a Dallas, Texas-based platform for beloved local brands, has acquired the Company from Altamont Capital Partners (“Altamont”). Harrington Park Advisors served as the exclusive financial advisor to Cotton Patch. Terms of the transaction were not disclosed.
Founded in 1989 by Larry Marshall and Michael Patranella, Cotton Patch Cafe has served generations of guests scratch-made Texas comfort food including its signature chicken-fried steak, homestyle sides and fresh-baked rolls. The brand operates 46 restaurants across Texas and New Mexico and has built a loyal guest following based on scratch-made comfort food, genuine hospitality and compelling everyday value.
Under the leadership of Chief Executive Officer Brandon Coleman III, Cotton Patch has achieved best-in-class performance in the casual dining segment. By focusing on the guest experience, investing in its people and sharpening operational execution, including the introduction of its $9.99 Texas Value Meals, Cotton Patch has delivered six consecutive quarters of positive same-store sales and traffic growth. Under Coleman’s leadership, Cotton Patch has won multiple Dallas Morning News Best in DFW People’s Choice awards, including #1 Best Comfort Food, #1 Most Kid-Friendly and #1 Best Chain Restaurant in 2025.
“The last two years have been about doubling down on what makes Cotton Patch special: taking care of our people, delivering real value and quality to our guests and treating every guest like family with genuine, friendly service,” said Coleman. “In Local Favorite Restaurants, we’ve found a partner who shares our values and brings the Texas-born Cotton Patch Cafe back to local Texas ownership. With the Local Favorite team behind us, we’re ready to bring Cotton Patch to more communities and write the next chapter of this amazing brand’s growth.”
Cotton Patch is a natural fit alongside Local Favorite’s portfolio of community-rooted Texas restaurant brands, which includes El Fenix Mexican Restaurant, Snuffer’s Restaurant & Bar, Meso Maya, Taqueria La Ventana, Wok Star Chinese, Campuzano Mexican Food, Twisted Root Burger Company and Village Burger Bar.
“Cotton Patch Cafe is exactly the kind of brand we love – an authentic Texas concept with deep roots in the communities it serves and a team that puts its guests first,” said Mike Karns, Founder and Free-Range Creative of Local Favorite Restaurants. “Brandon and his team have generated tremendous momentum at Cotton Patch, and we’re excited to bring our operating and real estate experience to help the brand continue to grow.”
“It has been a privilege to partner with Brandon and the entire Cotton Patch team,” said Kevin Mason, Managing Director at Altamont Capital Partners. “What initially drew us to Cotton Patch was how the experience and brand resonated with guests and their communities. Local Favorite is the ideal partner to carry that momentum forward into the next chapter of the Company’s story.”
About Cotton Patch Cafe:
Founded in Nacogdoches, Texas, in 1989, Cotton Patch Cafe has been serving up scratch-made comfort food and small-town spirit for more than 36 years. Based in Texas, the restaurant is a place where comfort classics like hand-breaded Chicken Fried Steak bring folks together around the table. With 46 locations across Texas and New Mexico, Cotton Patch Cafe stays true to its roots with hearty meals made from scratch every day and its $9.99 Texas Value Meals that deliver big flavor at an honest price. Deeply woven into the communities it serves, Cotton Patch Cafe proudly supports local causes and neighbors in need. In 2025, the brand was honored with three Gold awards in The Dallas Morning News’ Best in DFW Reader’s Choice Awards for Best Comfort Food, Best Kid-Friendly Restaurant and Best Chain Restaurant. For more information, visit www.cottonpatch.com.
About Altamont Capital Partners:
Founded in 2010, Altamont Capital Partners (“Altamont”) is a private equity firm focused on transforming and scaling lower-middle-market companies through significant business-building and value-creation resources. Altamont makes long-term, control investments and partners closely with management teams to execute proven and repeatable platform-building playbooks in sectors where the firm has deep experience and specialized knowledge. Altamont has invested in over 50 companies and currently manages over $4 billion of capital. Altamont is headquartered in Palo Alto, California, with additional offices in San Francisco and Austin, Texas. For more information, visit www.altamontcapital.com.
About Local Favorite Restaurants:
Local Favorite Restaurants owns and operates a distinctive collection of popular restaurant concepts across Texas – from legendary brands El Fenix Mexican Restaurant and Snuffer’s Restaurant & Bar to original creations including Meso Maya, Taqueria La Ventana, Village Burger Bar, Twisted Root Burger Company, Campuzano Mexican Food and Wok Star Chinese. In addition to its more than 50 restaurant locations, Local Favorite owns and operates Sunrise Mexican Foods, which produces fresh-made chips, tortillas and other high-quality Mexican food products for retail and foodservice operators nationwide. Founded by Dallas native Mike Karns, Local Favorite is dedicated to being the local favorite in every community it serves. For more information, visit www.localfavorite.com.
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