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

In the Del Taco franchisee bankruptcy, signs of the industry’s distress

The Bottom Line: Why did a 22-unit operator of the Mexican chain turn to one of the riskiest pieces of financing? Because the industry is in a tough spot, and some operators have few options.

Financing

Once a skeptic, Domino's embraces third-party aggregators

The Bottom Line: The pizza chain’s deal with DoorDash appears to be working as expected, according to the data firm M Science. Those aggregators have become vital for Domino’s market share, and other chains too.

Food

Lime Fresh Mexican Grill carves out a new pizza category on its menu

Behind the Menu: The Miami-based fast casual partnered with a Florida hot sauce company to launch scratch-made Mexican pizzas with local flavor.

Trending

More from our partners