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Popular Triangle burger shop has been sold. Here’s where an expansion could happen

More than four years after being named America’s best burger and nearly three years after filing for bankruptcy, Chapel Hill’s Al’s Burger Shack has been sold.

The Chapel Hill burger brand with two locations has been purchased by two UNC-Chapel Hill graduates, Charlie Farris and Jason Kesler, who own several Jersey Mike’s Subs franchises across the state. The Triangle Business Journal first reported the details of the sale.

Al’s Burger Shack was founded by husband and wife Al and Melody Bowers, who’ve owned or operated multiple Chapel Hill restaurants over the years. At the height of the Burger Shack’s success, there were three locations. Plans for a fourth location in the Durham bar Beer Study were ultimately canceled in January 2020.

The company filed for Chapter 11 bankruptcy for the two restaurants in North Carolina’s Middle District Bankruptcy Court in early January 2020, and Chapter 7 bankruptcy for the other.

There are currently two operating Al’s Burger Shack’s in Chapel Hill, with the Governor’s Village location closing permanently in summer 2020.

Of the bankruptcy, Bowers said in an emailed statement at the time that sales were strong at all three locations, but “we overextended during expansion and need protection and relief while we reorganize.”

Kesler and Farris closed on the sale Monday, Dec. 5 and took over operations the next day.

In 2018 the Bobo Chili Cheese burger at Al’s was named by Trip Advisor as the top burger in America based on a compiling of online reviews. The response was enormous, with lines down Franklin Street the weekend of the burger coronation.

The excitement and sales led to two more Al’s Burger Shack locations, including the one in Governor’s Village, fashioned more as a pub than a counter service burger shop. Ultimately that spread the brand too thin, Bowers said.

“(The top burger) wasn’t a good thing when you look back at it, but at the time it was the best thing,” Bowers told The News & Observer on Thursday.

In building the third location, Bowers said he had built the bar he always wanted, but possibly at the wrong time.

“I wanted to have a pub; I’ve always been fascinated by the European pubs, but also the little neighborhood joints you find in Pennsylvania or upstate New York. I loved those and always wanted one....And if I had a chance to do it over and end up right back where I am now, I would do it again.”

Though Al’s Burger Shack was moving through bankruptcy, Bowers said it wasn’t formally on the market. The sale came about while considering a Durham location a real estate broker had recommended for a new Al’s Burger Shack. Instead, Bowers said he started to realize he wanted out.

“I told the broker I don’t have the time, energy or resources to do a project like this,” Bowers said.

Farris said he and Bowers were introduced and conversations escalated from industry shop talk and commiseration and friendship to the eventual sale.

“I was a customer first,” Farris said of the Burger Shacks. “It’s a great product.”

Don’t expect any immediate changes to that project, Farris said. Among the possible future tweaks to Al’s, Farris said he’s considering expanding hours and opening at 11 a.m. instead of noon, and closing an hour later at 9 p.m. Days of service could also expand, with the possible future addition of Sunday or Monday hours.

The name won’t be touched, Farris said.

“There will be no name change, that’s a big part of the brand and vibe,” Farris said. “I’m buying it because I like the way it is.”

More Al’s Burger Shacks?

There are plans for a possible Al’s expansion, Farris said, but any new openings are a year or more away. Farris owns the majority of his 15 Jersey Mike’s locations in the Triangle and Kesler owns another eight in Wilmington, he said.

Farris said a third Al’s location would likely open in Wilmington due to Kesler’s business infrastructure there.

“There are no promises, but that would be the most likely location,” Farris said. “We’re really excited about the future. It’s a great burger and we’re looking forward to carrying that torch forward.”