The fast-casual Just Salad chain has raised $200 million in capital led by investor group Wellington Management, the company announced Monday.
The investors in the round also include D1 Capital Partners, Neuberger Berman and Stripes, the company said. And with the capital raise, the New York-based chain is valued at about $1 billion.
For Just Salad, proceeds of the transaction will be used to support new unit growth, as well as the chain’s continued investment in menu innovation, technology and enhancing the customer experience, the company said.
For example, the chain earlier this year launched a new Salad AI program that helps customers build their meal based on their personal lifestyle preferences.
“The quick-service food industry is in the early days of disruption, and the average consumer desperately wants healthy, craveable, convenient and accessible options; no one does that better than Just Salad,” said founder and CEO Nick Kenner, in a statement. “We are proud to partner with world-class investors like Wellington, D1, Neuberger Berman and Stripes to propel our next phase of growth.”
Founded in New York in 2006, Just Salad is known for its customizable salads, but also wraps, warm bowls, soups and smoothies. Dressings are made in house, produce is prepped and proteins are marinated and cooked in restaurants daily.
The chain has grown to close to 100 units in New York, Florida, Illinois, Massachusetts, New Jersey, Connecticut and Pennsylvania.
Just Salad is a Certified B Corp. | Photo courtesy of Just Salad
Just Salad is also a Certified B Corp., and was a pioneer in creating a reusable-bowl program, which has prevented an estimated 43,000 pounds of single-use packaging waste from being sent to landfills each year.
Just Salad was also one of the first restaurant brands to use carbon labels on its menu to showcase ingredients with less of an environmental impact.
Last year, the chain opened its first drive-thru location, which could bring a new format into growth plans.
Salad concepts have been performing well in recent years, and Kenner has said the segment has the potential to reach $7 billion in the next 10 years.
Michael Carmen, co-head of private investments at Wellington Management, said, “Just Salad offers consumers a great product at an attractive price and stands out from other restaurant companies with its strong brand and impressive same-store sales growth. This growth is outpacing others in the fast-casual category and is being driven by increased consumer traffic during the past year.”
BofA Securities acted as exclusive placement agent to Just Salad on the transaction and Latham & Watkins provided legal counsel.
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