The Washington, D.C.-based “Jew-ish” deli Call Your Mother has won a strategic investment designed to pave the way for growth.
The amount of the investment was not disclosed, but Andrew Dana, who co-founded the concept with wife and chef Daniela Moreira characterized it as a significant stake.
It comes from the global investment firm Artal through its investment advisor Invus, which has more than$10 billion under management. Invus described the investment as a majority stake.
Dana and Moreira launched what was initially a bagel concept in 2018, and it has grown to 15 units in the greater D.C. area and Denver, all company owned. The brand takes pride in creating “GFEs,” or Great Freakin’ Experiences, with a menu that includes assorted bagels and “schmearz,” both breakfast and lunch sandwiches and “schweets” like chocolate babka muffins and seasonal pastries. Last year the concept started roasting its own coffee.
Sandwiches on the menu at Call Your Mother. | Photo courtesy of Call Your Mother.
The chain operates with a commissary model that has a storefront but also supports smaller satellite outlets, which can vary between 900- and 2,400-square feet.
“Andrew and Daniela have created something truly exceptional with Call Your Mother, blending innovation and authenticity in a way that stands out,” said Justin Barstein, managing director of Invus, in a statement. “We see incredible potential for its continued growth and are thrilled to partner with them to bring their unique deli experience to more communities.”
Early on, the chain had a prominent backer: Jeff Zients, who served as President Biden’s Covid czar and later chief of staff, though Dana said Zients sold his stake in the company when he joined the White House.
The chain has been such a hit in the D.C. area, last year Call Your Mother’s location in Georgetown faced a lawsuit because neighboring houses objected to the crowds of people who sat on their stoops to munch their bagels. (Dana said the chain won the legal battle because the judge refused to punish a business for simply being successful.)
The chain has a mix of formats, with some offering dine-in and others geared more for to-go. | Photo courtesy of Call Your Mother.
Six more outlets are scheduled to open in 2025 in D.C. and Denver. With the investment, Dana said the plan is to take the brand to new markets, though they haven’t decided yet where. So far, the couple has looked at Nashville, Tennessee; Austin, Texas; Raleigh-Durham, North Carolina; and Miami.
All were very attractive, he said, if only because right now they are warmer than D.C.
Dana said they also plan to invest in building a “stud” team as they plan for more growth.
Dana also co-founded the four-unit Timber Pizza Co., which is also growing. That is a franchise brand and the chain expects to add two units this year.
And the couple is tangentially involved in a growing peanut butter brand called One Trick Pony, which is in about 600 stores, and being developed by Moreira’s sister. Both are from Argentina, originally, where the soil and climate is ideal for growing peanuts. One Trick Pony features Argentinian peanuts seasoned simply with Patagonian sea salt.
Harrington Park Advisors served as exclusive financial advisor on the Call Your Mother deal, and Blank Rome served as legal advisor. Patterson Belknap served as legal advisor and BDO served as financial and tax advisor to Invus.
UPDATE: This article has been updated to clarify the investment as a majority stake.
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