Peter Smits founded a sandwich shop in Uden in 1998 and expanded it into the tapas chain 't Zusje, which has since become the fourth-largest restaurant chain in the Netherlands with 36 locations. To facilitate international expansion, Smits—advised by Translink Corporate Finance—sold 60 percent of his equity stake to the German hospitality group Gustoso. Smits will remain as director of 't Zusje, which will open its first German location next year—possibly under the name “Kleine Schwester.”
Peter Smits had a dream of expanding his tapas concept 't Zusje across the border. Doing so on his own turned out to be more difficult than expected, so he sold a majority stake to a German investor. “It might just say ‘Kleine Schwester’ on the facade.”
No, Peter Smits never imagined he’d end up with 36 ‘t Zusje locations spread across the Netherlands. The fourth-largest restaurant chain in the country started as a small sandwich shop in Uden. In 1998, Smits—a hospitality professional through and through—took over a sandwich shop and transformed it into the restaurant De Baron. But due to a fire, the restaurant had to close its doors for a few weeks.
“That’s when I had time to think about a new direction,” Smits explains. “Because I wanted the guests in my restaurant to interact more with each other and enjoy themselves to the fullest. So I decided to make the dishes smaller and offer them as tapas at a fixed price—a first in the Netherlands at the time. That concept was so popular that we had to move to a larger location in 2009. That restaurant was called ‘t Zusje van De Baron.”
International rollout
It marked the beginning of a successful concept, as more than 1.5 million guests visited the restaurant chain in 2023. There are now 36 restaurants on the map; three of them are company-owned locations, while the rest are operated by franchisees. And as far as the founder of ’t Zusje is concerned, there’s still room for a few more locations in our country. But his real ambition lies in rolling out his concept internationally.
Smits: “I’ve been toying with the idea of expanding ‘t Zusje across the border for about three years now. The brand value triples when you go international. I’ve had in-depth exploratory discussions with various foreign parties. But then you also realize that, for example, labor laws, the tax system, or hospitality regulations are completely different. That places quite a few demands on your own organization if you want to accomplish that on your own.'
But the plan to expand abroad remained high on the agenda. Smits therefore enlisted the help of M&A advisory firm Translink Corporate Finance, which was tasked with finding a partner with whom Smits could collaborate to realize his ambitions. “That also means selling shares. Fine, I had no problem with that. This way, I can cash out a bit and make my international dream come true.”
Translink ended up with Gustoso, a German hospitality group with eight brands - such as 60 seconds to napoli, Burgermeister and Cucina - and a total of 170 restaurants in Germany, Switzerland and Austria.
“After an initial online meeting and mutual company visits, it quickly became clear to me that both parties were on the same page,” said Smits. “It’s a win-win situation. For Gustoso, ‘t Zusje is a gateway to the Netherlands and a step toward their ambition to conquer the European market. And thanks to their experience, support, and know-how, I can more easily roll out our concept in countries like Germany and Belgium.”
Kleine Schwester
Negotiations with the Germans went fairly smoothly. But because both parties were primarily focused on collaboration in the deal, Smits says you don’t haggle fiercely over every single detail. Ultimately, he sold 60 percent of his stake in ’t Zusje to Gustoso. He then reinvested a sum in the newly established Gustoso Group Netherlands, in which both parties hold an interest, and Smits remains the director of ’t Zusje.
As early as next year, 't Zusje plans to open its first restaurant in Germany, initially near the Dutch border. But Smits doesn’t care whether that restaurant opens under the Dutch name 't Zusje. “That name isn’t all that important to me. What’s much more important is that the brand, the concept, and the quality remain intact. They can figure out what the name will be in Munich. It might just end up saying ‘Kleine Schwester’ on the facade.”
Frequently Asked Questions About the Sale of 't Zusje to Gustoso
Who is Peter Smits, and what is 't Zusje?
Peter Smits is the founder of the tapas chain 't Zusje. He started out in 1998 with a sandwich shop in Uden, which was transformed into the current tapas concept in 2009. 't Zusje is now the fourth-largest restaurant chain in the Netherlands, with 36 locations.
Why did Peter Smits sell a stake in 't Zusje?
Smits wanted to expand 't Zusje internationally, but ran into differences in labor laws, tax systems, and hospitality regulations between countries. To realize that ambition together with an experienced partner, he enlisted Translink Corporate Finance to find a suitable buyer.
To whom did Peter Smits sell a majority stake in 't Zusje?
Smits sold 60 percent of his stake in 't Zusje to Gustoso, a German hospitality group with multiple restaurant brands.
Will Peter Smits remain involved with 't Zusje after the sale?
Yes. Smits reinvested a portion of the proceeds into the newly established Gustoso Group Netherlands, in which both parties hold stakes, and will remain as director of ’t Zusje.
When will 't Zusje open a restaurant in Germany?
Next year, 't Zusje plans to open its first restaurant in Germany, initially near the Dutch border. The name of the restaurant has not yet been decided.
