Le Peep Purchases Franchise Rights

Only a month after detailing ambitious expansion plans, an Irvine-based group of investors has agreed to accept $3.8 million for its four Le Peep restaurants and the franchise rights to open another 150 Le Peeps.

The investor group, PJL Restaurant Corp., will become a wholly owned subsidiary of Denver-based Le Peep Restaurants Inc., which went public only six months ago, the companies said Tuesday. PJL was formed 14 months ago after its four principals bought the exclusive right to open 150 Le Peep restaurants in six western states and a territory in New England. Four had been opened in the intervening months.

The Le Peep concept is to offer a large selection of fast-but-fancy breakfast and brunch food to well-off diners between the ages of 25 and 40. Largely backed by a New York-based venture capitalist, Eli J. Jacobs, PJL paid $1.5 million for the exclusive franchise.

Le Peep plans to resell the franchise rights to get quick development of about 100 restaurants in California--including 15 in Orange County.

Vincent A. Lambiase, president of PJL, said he and Jeffrey F. Hitz, PJL vice president of operations, want to acquire an existing, sizable restaurant chain with the financial backing of Jacobs’ company, E.J. Jacobs & Co.