Cotton Patch Cafe Returns to Texas Ownership Under Local Favorite Restaurants

spent the last decade under California private equity. As of June 29, it belongs to Dallas.

Local Favorite Restaurants, the Dallas-based group behind El Fenix Mexican Restaurant, Snuffer’s Restaurant & Bar, Meso Maya, and six other Texas concepts, has acquired Cotton Patch from Altamont Capital Partners, the Palo Alto firm that owned the brand since 2016. Financial terms were not disclosed. The deal brings Cotton Patch back under Texas ownership for the first time in nearly a decade and gives Local Favorite a portfolio of 99 restaurants across ten brands.

Cotton Patch has roots in Nacogdoches, where Larry Marshall and Michael Patranella opened the first location in 1989. The formula was simple: hand-breaded chicken-fried steak, meatloaf, fresh-baked rolls, and scratch-made sides, the kind of meal built around the table rather than the menu. The brand grew steadily, peaking at 56 locations before the pandemic, then losing traffic as the value proposition Coleman believed needed to be restored got further from what its regulars expected. When CEO Brandon Coleman III arrived in early 2024, 46 locations were still operating across Texas, New Mexico, and Oklahoma, and the work of winning back guests had to start from the beginning.

Coleman came in after a brief run leading TGI Fridays, and before that he’d been U.S. president and chief marketing officer at that chain, CMO at Dave & Buster’s, and president of Del Frisco’s Grille. A Texas A&M marketing graduate named to Ad Age’s 40 Under 40 in 2013, he found a brand that had raised prices past what its regulars were willing to pay, a menu that had grown unnecessarily complicated, and a culture that had been damaged by repeated leadership turnover.

The fix was methodical. He brought back the $9.99 Texas Value Meals, held monthly town halls where employees actually got answers, and stopped competing on dimensions that didn’t matter to anyone ordering chicken-fried steak on a Tuesday. According to Coleman, average Google ratings improved from 3.8 to 4.8 stars and traffic climbed 10 percent year over year. Six straight quarters of positive same-store sales and traffic growth followed.

With the acquisition, Coleman steps up. He’ll now serve as CEO of all Local Favorite Restaurants brands, taking responsibility for the full portfolio under founder Mike Karns, who stays in his self-designated role as “free-range creative.” Karns sets vision, develops real estate, and finds operators he trusts to run things. It’s how he’s built the company for nearly two decades without losing the thread.

That thread runs through a specific kind of Dallas institution. Karns came to restaurants through real estate, spending years brokering locations across 22 states before acquiring El Fenix from the Martinez family in 2008, taking ownership of a Dallas institution founded in 1918 and still the oldest Mexican restaurant chain in the country. He added Snuffer’s in 2013, developed Meso Maya and Taqueria La Ventana as original concepts, and kept acquiring. What connects the portfolio isn’t a cuisine but a disposition: community-rooted, Texas-born, and built for people who’ve already decided they belong there.

Cotton Patch reads the same way. The menu isn’t changing. The team isn’t changing. What’s changing is who signs the check, swapping a Palo Alto firm for a Dallas restaurant group that has spent nearly two decades doing exactly this: keeping the lights on at Texas restaurants that were already somebody’s favorite.

Frequently Asked Questions

Who acquired Cotton Patch Cafe?

Cotton Patch Cafe was acquired by Local Favorite Restaurants, a Dallas-based restaurant group founded by Mike Karns, from Altamont Capital Partners on June 29, 2026. Financial terms of the transaction were not disclosed.

What is Local Favorite Restaurants?

Local Favorite Restaurants is a Dallas-based restaurant group that owns and operates 99 restaurants across ten brands, including El Fenix Mexican Restaurant, Snuffer’s Restaurant & Bar, Meso Maya, and Twisted Root Burger Company, among others. More information is available at localfavorite.com.

Is anything changing at Cotton Patch Cafe?

No. CEO Brandon Coleman III confirmed that the menu, staff, and guest experience are not changing under the new ownership. Coleman, who led the brand’s turnaround over the past year and a half, now also takes on the role of CEO for all Local Favorite Restaurants brands.

How many Cotton Patch Cafe locations are there?

Cotton Patch Cafe currently operates 46 locations across Texas, New Mexico, and Oklahoma.

Where is Cotton Patch Cafe’s official website?

Guests can find Cotton Patch Cafe locations, menus, and updates at cottonpatch.com.

Where was Cotton Patch Cafe founded?

Cotton Patch Cafe was founded in Nacogdoches, Texas, in 1989 by Larry Marshall and Michael Patranella.

What is Cotton Patch Cafe known for?

Cotton Patch Cafe is known for scratch-made Texas comfort food, including hand-breaded chicken-fried steak, meatloaf, fresh-baked rolls, and homestyle sides. The brand also offers $9.99 Texas Value Meals and operates 46 locations across Texas, New Mexico, and Oklahoma.