Quaker Steak and Lube, the Sharon, PA-based restaurant chain, has filed for bankruptcy protection, according to the Pittsburgh Post-Gazette.
The chain expects to be acquired by TravelCenters of America for $25 million. The deal calls for Quaker Steak, with more than 50 locations nationwide, to retain its brand and possible expand under the new owner.
TravelCenters of America has more than 500 quick and full-service restaurants in 43 states. The company said it will convert some TravelCenter to Quaker Steak and Lubes.
According to a statement from the companies, a bankruptcy filing Monday by Quaker Steak included details of the proposed acquisition. TravelCenters has already made a deposit on the acquisition and has agreed to offer jobs to "substantially all" of Quaker Steak's current employees.
In other chain restaurant news, McDonald's Corp will start the new year by introducing a new value menu that it hopes will attract cost-conscious customers.
According to a report by the National Restaurant Association, the new "McPick 2" menu, starting on Jan. 4, will allow customers to pick a pair of items for a total of $2 from among four choices: the McDouble and McChicken sandwiches, a small order of fries and mozzarella sticks.
Finding the right value offering has been a trouble spot for the company. McDonald's has struggled for year to find the right formula, with precious tweaks that included the "Extra Value Menu" in 2012 and the "Dollar Menu and More" the following year.
Other fast-food chains have also struggles to find the right pricing balance on their menus. Last month, Wendy's introduced a "4 for $4" deal, consisting of a Jr. Bacon Cheeseburger, chicken nuggets, fries and drink.
McDonald's McPick menu will be available for five weeks, after which time the company might alter the items, the National Restaurant Association reported.
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