Merced McDonald’s owner buys 20 locations in Georgia. What it means for local restaurants

A veteran Merced businessman who owns McDonald’s restaurants throughout the San Joaquin Valley is expanding to Georgia.

Jim Abbate, whose family has long been in the Golden Arches business, purchased 20 new McDonald’s locations in the Columbus, Georgia, area.

The new ownership will be made official Nov. 1, according to a report by WRBL, a CBS-affiliated television station. Terms of the deal were not disclosed.

The new Georgia locations will nearly double the McDonald’s restaurants held by ALIA Corp., a Merced-based company owned by the Abbate family.

The company owns 35 McDonald’s throughout the Valley, spanning from Atwater to Bakersfield. The Georgia acquisition will bring that total to 55 once the new ownership is finalized.

Abbate’s brother will continue to run the California-based restaurants while he oversees the new Georgia properties, Abbate told the Sun-Star. Business is expected to continue as usual at the Valley McDonald’s locations.

“Nobody will really notice any change at all,” Abbate said.

McDonald’s employees working at the locations affected by the sale are expected to maintain their jobs. Abbate estimates roughly 1,700 employees work at his family’s Valley McDonald’s locations. The Georgia restaurants employ between 850 and 1,200 workers.

Longtime Merced business family expands ventures east

A longtime pillar of the Merced business community, Abbate said he and his family are poised to relocate to Columbus. Abbate said he is excited to start a new life outside of California.

“Over the past several years, we’ve been looking for an opportunity to limit our exposure in California,” Abbate said, noting the state’s regulatory environment and higher cost of living compared to other parts of the country. “Georgia has a beautiful community, Columbus is a great town,” he added.

Abbate purchased the new McDonald’s from Jack Pezold, a Columbus-based businessman. Pezold began building his business empire over 40 years ago, starting with six McDonald’s locations, according to WRBL.

Abbate described Pezold as “the ultimate community guy,” a legacy that Abbate said he hopes to continue in Columbus. “I’m going to go there and basically try to do right by Jack Pezold,” Abbate said.

The transaction with Abbate doesn’t impact Pezold’s other holdings, including Valley Hospitality and Denim North America.

The Abbate family business also spans decades, beginning with Abbate’s father and uncle, who opened a McDonald’s on Olive Avenue across from Merced High School in 1969. The Abbates’ McDonald’s ventures have continued to grow since.

During the newest chapter of the family business, Abbate said he hopes to become an asset to the Columbus community and foster a positive workplace environment.

“I’m the type of person who likes to be in the restaurant, having a bit of fun, smiling,” Abbate said.

Abbate in 2016 was recognized for his service to the community and named man of the year by the Greater Merced Chamber of Commerce.

The family’s company also garnered attention in 2020 for receiving one of the top two largest federal COVID-19 relief loans in the central San Joaquin Valley, worth potentially up to $10 million. The money was expected to save 500 McDonald’s jobs.