New York-based asset manager Blackstone has made a significant investment in 7 Brew Coffee to support the drive-thru beverage company's nationwide expansion efforts. While the terms of the deal were not disclosed, Blackstone Growth and affiliated funds aim to accelerate 7 Brew's growth in collaboration with its franchise partners.
Since its establishment in 2017 in Rogers, Arkansas, 7 Brew has stood out as a coffee franchise with a mission to create over 20,000 custom drink combinations, spreading joy with every sip. Recognized as QSR Magazine's Breakout Brand of 2023, 7 Brew has become a top franchisor.
Brian Cornyn of Blackstone highlighted the investment's alignment with the firm's focus on strong franchise businesses and skilled operators. This move follows Blackstone's 2021 investment in the fitness franchise Snap Fitness, showcasing its commitment to supporting franchise growth and digital transformation.
Franchising is a prevalent business model, with an estimated 805,500 U.S. franchise establishments generating around $860 billion in economic output in 2023, according to Statista.
7 Brew, headquartered in Arkansas, has expanded to over 200 locations across 22 states, achieving significant milestones. With each store generating approximately $2.35 million in annual sales, the company is actively working on cost efficiencies, aiming to reduce construction expenses to $1.3 million or less.
CEO John Davidson expressed excitement about partnering with Blackstone, emphasizing the global reach and resources that will propel 7 Brew to the next stage of growth. The company's CFO, Nicole Miller Regan, highlighted the massive opportunity ahead, with plans to break sales and development records while ensuring the growth is sustainable.
Disclaimer: This information is for informational purposes only and does not constitute investment advice, endorsement, or a recommendation. Always conduct thorough research and consider consulting with a financial advisor before making investment decisions.