Local Favorite Restaurants acquired Cotton Patch Cafe from Altamont Capital Partners, Cotton Patch announced June 29, 2026, combining the comfort-food chain with a portfolio of Texas restaurant brands.
The transaction announcement describes Cotton Patch as a 46-location business in Texas and New Mexico. It puts Local Favorite’s combined holdings at 99 restaurants across 10 brands.
Cotton Patch CEO Brandon Coleman III will become chief executive of Local Favorite, overseeing the broader group. Founder Mike Karns retains responsibility for its creative and growth vision. The portfolio includes El Fenix, Snuffer’s, Meso Maya and Twisted Root Burger Company.
Financial terms were undisclosed. The release presents shared operating expertise and further Texas development as opportunities. No completed integration program or measured savings are reported. Coleman’s expanded role makes management continuity a concrete part of the transaction: the acquired chain’s leader will also lead the buyer’s other concepts.
Altamont’s investment began in 2015#
The seller’s February 13, 2015, acquisition announcement described a 45-restaurant Cotton Patch business in Texas, Oklahoma and New Mexico. Founders Larry Marshall and Michael Patranella had opened the first location in 1989.
Kathy Nelson, then chief executive, remained in charge and invested alongside Altamont. Her earlier experience included leadership roles at Pizza Hut, Pillsbury and General Mills. The announced plan was to expand within existing and adjacent markets while keeping the chain’s scratch-cooking and value positioning.
Altamont’s restaurant experience at the time included investments in Taco Bell operator Tacala and Sonic operator Boom Foods. Its Cotton Patch purchase placed a regional restaurant concept alongside those franchise-operator investments.
Altamont’s purchase paired capital with an incumbent management team. The 2015 account establishes the beginning of Altamont’s tenure and its initial development intent. The announcements do not disclose the cash invested during Altamont’s tenure or proceeds from the 2026 exit. Without those figures, the investment return cannot be calculated.
Restaurant assets required individual decisions#
Cotton Patch’s operating history gives substance to what supporting a regional portfolio entails. In RFMA’s April/May 2018 Facilitator profile, writer Sherleen Mahoney interviewed the chain’s design and facilities leaders about its remodel program.
Four restaurants were remodeled in 2016 and five in 2017, with nine planned for 2018. The team selected projects using lease expirations, sales opportunities and asset condition. Remodel packages also depended on the restaurant and its market’s real estate strategy.
Vice President of Development Maria Johnson described difficulty finding repair vendors in rural markets, creating longer lead times and travel expense. The team supplied troubleshooting guides to restaurant operators and selected decor that could be sourced, repaired or replaced without undue difficulty. It also used a local supplier to purchase cooking and refrigeration equipment, furniture and decor, keeping those specifications coordinated.
Those practices were documented under Altamont, years before Local Favorite’s acquisition. They are context for the assets changing hands, not an announced integration program. The account shows why a restaurant acquisition brings site-specific obligations alongside a brand name. Coordinated purchasing supported that work, while each building’s condition, lease and repair needs helped determine which projects received investment and when.
QSR Pro Staff
The QSR Pro editorial team covers the quick service restaurant industry with in-depth analysis, data-driven reporting, and operator-first perspective.
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