Emerging Brands

Bubbakoo's acquired by private-equity firm Thompson Street Capital Partners

The fast-casual franchised burrito chain has 130 units in 15 states, and the new owners plan to invest in technology and infrastructure for expansion.
Bubbakoo's is known for burritos, but also bowls, tacos, quesadillas and fried rice balls called "chiwawas." | Photo courtesy of Bubbakoo's.

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.

 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Consumers are leaving their cars and going into restaurants

The Bottom Line: Drive-thru traffic has steadily fallen since the pandemic, even as other off-premise channels remain strong. That traffic has shifted back to the restaurants. Did the industry overdo the drive-thru?

Financing

In the 10 largest restaurant chains, signs of the industry’s evolution

The Bottom Line: Only 14 chains have been on the list of the 10 largest concepts over the past two decades. But that doesn’t mean that it hasn’t changed with consumer demand.

Emerging Brands

Olive & Finch lets diners dictate how they want to experience the brand

This growing premium fast casual out of Denver is expanding with an all-day menu priced no higher than $20. Part of the value offering is giving guests options for how they use the concept.

Trending

More from our partners