The first Red Hot & Blue restaurant opened in Arlington, Virginia in 1988, started by Lee Atwater, Don Sundquist and friends. Don was from Memphis, Tennessee and served in the U.S. House of Representatives and later as governor of Tennessee. Lee Atwater was an amateur blues musician and political figure who managed George H.W. Bush’s successful race for the presidency.
For its first 20 years, Red Hot & Blue was a strong and growing brand with a positive culture. The company expanded rapidly. In 2008, it was purchased by inexperienced operators – financed with a substantial amount of debt – just before the recession hit. Over the next 10 years, it was stripped of its foundation at the same time the casual dining segment began to shift. AJB Capital purchased the business in April 2018 with a vision to restore the brand and reposition it for growth.
AJB Capital saw through the mismanagement to the power of the brand and the potential of the category. We acquired its assets through a new entity and began restructuring the leadership team, placing the business more firmly on its intended path. In March 2019, Adam Bradley assumed full CEO leadership of Red Hot & Blue and developed the vision for the new Red Hot & Blue BBQ. By March 2020, the business had begun to stabilize when COVID-19 hit. This unprecedented event began an intense focus on continuous improvement and problem solving. AJB Capital managed the system through the early stage of the pandemic, keeping all locations open and operational while designing our new format. By 2021 we successfully extinguished all old debts and completed our restructuring. We then built the leadership team with a greater level of operational execution, standards, oversight, and accountability in preparation for the growth phase.
In 2022, Red Hot & Blue opened its first store under the new fast casual format in Morrisville, NC. with a second unit in Fairfax, VA in 2023. We are now executing a 3-year plan to open an additional 6 locations. Red Hot & Blue BBQ has a tremendous opportunity for value creation, and AJB Capital is focused on maximizing it.
