With the growing restaurant industry, more and more investment groups are focusing on the sector. These groups provide capital, expertise and other resources to help restaurants start up, expand and boost profitability. By partnering with investment groups, restaurant owners and entrepreneurs can fast-track growth while reducing risks. This article provides a list of major investment groups facilitating investments in the restaurant space.
KKR’s significant investments in national restaurant chains
KKR is a leading global investment firm that has made major investments in some of the biggest restaurant chains in America. In 2017, KKR acquired Cheddar’s Scratch Kitchen, a casual dining chain with 165 locations, for $780 million. The firm helped Cheddar’s expand to over 170 restaurants before selling it to Darden Restaurants for $780 million in 2021. KKR also led a $200 million investment in Outback Steakhouse’s parent company Bloomin’ Brands in 2019. The investment helped Outback upgrade stores and expand off-premise capabilities during the pandemic. KKR’s track record shows its ability to grow restaurant chains.
Roark Capital’s portfolio of restaurant franchises
Roark Capital is an Atlanta-based private equity firm that focuses on investing in franchised brands. It has acquired many leading restaurant franchise chains over the past decade. Roark’s restaurant investments include Arby’s, Buffalo Wild Wings, Cinnabon, Carvel, Jimmy John’s and others. It helps these chains remodel stores, enhance technology and drive sustainable long-term growth. Roark provides not just capital but also operational expertise in franchising, real estate, supply chain and marketing to support its restaurant investments.
TriSpan’s investments in emerging restaurant concepts
TriSpan is a growth equity firm that partners with emerging restaurant concepts to help them expand. Its current restaurant investments includeStreamHandler, a fast casual pizza chain; Burger Fi, a better burger chain; and Tocaya Organica, a fast casual Mexican chain. TriSpan works closely with management to develop growth strategies and make add-on acquisitions. It also provides expertise in real estate selection, supply chain, IT infrastructure, marketing and HR to facilitate rapid expansion of its restaurant partners.
Brentwood Associates’ focus on multi-location brands
Brentwood Associates is a Los Angeles-based private equity firm focused on investing in multi-location consumer brands. On the restaurant side, it has invested in chains like Lazy Dog Restaurant & Bar, Veggie Grill, and Lemonade Restaurant. After investing in Lazy Dog in 2012, Brentwood helped the chain grow from 11 to over 30 locations prior to its realization in 2017. It also oversaw Veggie Grill’s expansion from 14 to 32 units. Brentwood provides strategic and operational support to scale emerging restaurant brands into national chains.
Major private equity firms like KKR, Roark Capital, TriSpan and Brentwood Associates are actively facilitating investments in the restaurant space. They provide capital and expertise to help chains accelerate growth, expand nationally and boost profitability. Restaurant entrepreneurs can leverage their scale, experience and resources to build large successful brands.