New York-based growth equity firm Stripes Group has made an investment in the Snooze restaurant chain while also buying out the shares in the eatery held by fellow PE firm Weston Presidio.
Ken Fox, managing partner of Stripes Group, told Agri Investor that his company began investigating the restaurant industry about three years ago, bringing on former Shake Shack chief executive officer David Swinghammer as an operating partner to help identify opportunities.
“We are big believers in the industrial food chain in America becoming a movement towards less-processed foods with better and simpler ingredients,” he said. “In the case of restaurants: getting more value and a better meal.”
Snooze, which currently has 17 locations across Colorado, California, Arizona and Texas, markets itself as providing moderately-priced meals made with seasonal ingredients and offering “creative takes on traditional breakfast and brunch favorites including pancakes, benedicts and cocktails”, according to a statement from Snooze.
The company also stresses a commitment to sustainability through sourcing local ingredients and recycling and composting waste.
Swinghammer said Stripes Group will provide growth capital to support Snooze’s growth strategy, initially focused on existing markets and eventually expanding to other metropolitan areas. He declined to disclose the purchase price.
Stripes Group typically makes investments of between $10 million and $150 million in companies in the internet, software, healthcare IT and branded consumer products sectors.
The firm’s other food-related investments include internet-based delivery service Blue Apron, web-based meal ordering platform Grubhub and MyWebGrocer, which develops software used by grocery store chains. Last September, the Stripes Group also made a $50 million investment in Califia Farms, an almond milk producer.