Bubbakoo’s Burritos has a new owner.
The New Jersey-based fast-casual chain has been acquired by private-equity firm Thompson Street Capital Partners, the company announced Wednesday. Terms were not disclosed.
Thompson Street managing partner Bob Dunn described the 130-unit Bubbakoo’s as an “innovative and compelling brand that resonate with a broad and growing customer base.”
The burrito chain was founded in 2008 in Wall Township, New Jersey, by Bill Hart and Paul Altero, who created a menu of traditional Mexican fare but with a twist. Bubbakoo’s started franchising in 2015, and the chain has grown into 15 states, mostly on the East Coast and Midwest.
Last year, Bubbakoo’s sales increased 16% to more than $110 million, with more than 11% unit growth, according to Technomic’s Top 500 Chain Restaurant report. That was second only to Velvet Taco, which saw a more than 21% sales increase last year. Bubbakoo’s even beat category leader Chipotle, which was up nearly 15% last year.
Joe St. Geme, managing director of Thompson Street, said in a statement, “We see tremendous opportunity to support Bubbakoo’s continued growth by investing in technology, brand development, infrastructure, and franchisee support systems.
“The company has built a strong foundation, and our team is eager to help accelerate growth while maintaining the culture and values that have made Bubbakoo’s a success,” St. Geme added.
Thompson Street, which is based in St. Louis, said it has a history of investing in founder-led businesses with opportunities to scale. The firm’s portfolio also includes Freddy’s Frozen Custard & Steakburgers.
Bubbakoo’s officials did not immediately respond to requests for more information.
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