Gregorys Coffee was founded in 2006 and has more than 50 locations.Source: Gregorys CoffeeCraveworthy Brands is now investor and managing partner of Gregorys Coffee, a New York City-based coffee chain with dreams of a nationwide foot.The two companies announced the deal on Thursday.
Financial terms were not disclosed.Craveworthy Brands, a fast-growing restaurant holding company, has become a lific investor since its founding in 2022.
Its portfolio includes legacy chains such as Genghis Grill and BD's Mongolian Grill, emerging concepts including Shaquille O'Neal's Big Chicken as well as several virtual brands that only offer dery.Gregorys was founded in 2006.
The regional coffee chain is often counted as part of the third-wave coffee trend that focused on quality beans and artisanal craft, along with peers Blue Bottle Coffee and Intelligentsia Coffee.
Today, Gregorys has more than 50 locations, but the deal with Craveworthy Brands is meant to help franchise Gregorys and expand beyond its tristate stronghold.Founder Gregory Zamfotis will stay on as president of the brand."Gregory has built something special: a cult ing, a craft duct and a identity.
Our role is to tect that, while layering in the operational firepower to grow thoughtfully," Craveworthy Brands founder and CEO Gregg Majewski said in a statement.More than two decades ago, Majewski served as CEO of sandwich chain Jimmy John's, growing it from a couple dozen restaurants to 300 locations by the time he left in 2003.
With Craveworthy Brands, he is looking to build a restaurant IP company, similar to the early days of private equity firm Roark Capital, he told CNBC in an interview in May.
Roark owns Subway, Dunkin' parent Inspire Brands and Cinnabon owner GoTo Foods.When looking for potential additions to Craveworthy Brands' portfolio, Majewski has said he's targeting brands with fewer than 75 locations and the ability to franchise easily.
Today, the company's holdings include more than a dozen eateries, and its investments range from outright ownership to controlling stakes.
With the Gregorys acquisition, the company's annual system sales will cross $400 million, a spokesperson said.Craveworthy Brands' deal comes as beverages increasingly drive traffic in the restaurant industry.
Although Starbucks sales are slumping, newer chains such as Dutch Bros and 7 Brew have seen growth soar in recent years.
Fast-food chains such as McDonald's and Yum Brands-owned Taco Bell are testing broader drink s, with options to customize and more ways to caffeinate, from refreshers to flavored cold brew.Harborfield Management, Branded Hospitality and restaurant-focused venture capital firm Kitchen Fund also invested in Gregorys as part of the funding round.
Majewski and Zamfotis, Kitchen Fund's managing partner also happens to be named Greg.Don’t miss these insights from CNBC Bank of America says these five stocks have more room to run ahead of earningsThese overbought stocks could take a dip after the market's record gainsGoldman Sachs is getting worried the economyWhat the prediction are saying the big Wall Street events ahead