Danny Meyer’s Enlightened Hospitality Investments (EHI) is putting a few more chips in Chip City Cookies.
The growing cookie chain on Wednesday announced a $7.5 million Series B investment round, bringing the total raised to $17.5 million.
The financing will enable the 38-unit chain to grow its brick-and-mortar locations, as well as investing in infrastructure to strengthen its brand position in the competitive cookie segment, the company said.
“This Series B fundraise helps Chip City sustain and further our strong commitment to developing exceptional cookies, providing enjoyable experiences for our guests and team members, and to continuously invest in the next stage of our transformative journey,” said Peter Phillips, Chip City’s co-founder and CEO, in a statement. “We’re excited about our growth trajectory and this investment from EHI propels us into a new era of growth and innovation.”
Childhood friends Phillips and Teddy Gailas founded Chip City in 2017 in the borough of Queens in New York City. It was born of somewhat of a hobby—the two were competing to see who could create the best cookie. On the menu are 58 rotating cookies with speciality flavors like the Chocolate Chip Cupcake cookie, the Frootie Crunch (a sugar cookie with fruity cereal) and the most recent introductions: Thin Chips (like it sounds) and a Chip Crookie (a cookie/croissant).
The chain now has units in eight states, with plans to enter new markets this year, and ships nationally with Goldbelly (another EHI investment partner).
EHI first invested $10 million in Chip City in 2022.
“It’s been thrilling to watch Chip City’s momentum take hold in markets across the country,” said Meyer, founder of Union Square Hospitality Group and Shake Shack, in a statement. “The Series B capital not only validates the quality of the product—which is delicious!—but also illustrates the team’s ability to accelerate retail growth, execute creatively, retain customers and, ultimately, secure a prime position in the cookies space.”
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