Some investors are still willing to back restaurants, apparently.
Beach Point Capital Management has made an investment in Metro Franchising, one of the largest franchisees in the Dunkin’ system, the private-equity firm said this week.
Metro Franchising operates 105 stores in the New York City region. Stuart Cohen, the CEO and cofounder, and Paul Waltzer, the president and cofounder, will remain partners.
Beach Point bought out the operator’s previous private-equity sponsor, Quilvest Capital Partners.
The investment “represents a new chapter for Metro Franchising,” Cohen said in a statement, noting the deal will help the franchisee accelerate growth.
Bordon Lai, managing director of Beach Point, noted that Dunkin’ “is an iconic brand providing great value to millions of loyal customers across North America,” adding that Cohen and Waltzer “have built Metro Franchising into one of the top franchisees in the system.”
Metro Franchising was founded in 1998. Beach Point, based in Santa Monica, California, has $17 billion in assets under management.
Private equity in particular has been more reticent to invest in restaurant operations in recent years, particularly as profit and sales challenges have put pressure on the industry.
The investment in Metro Franchising shows that there remains capital available for well-performing franchisees of good brands abd good markets—despite sales and traffic weakness of late.
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