Snooze, a fast-growing breakfast chain, on Thursday said it has received a minority investment from Brentwood Associates.
Terms of the deal were not disclosed, but the private equity firm is working with Snooze’s existing majority shareholder Stripes along with existing investor Alliance Consumer Growth (ACG) to “accelerate the company’s continued growth nationwide and fund strategic initiatives.”
The Denver-based Snooze is one of the leading concepts in the burgeoning market for breakfast-focused chains. System sales rose 32.4% last year, according to Restaurant Business sister company Technomic. The chain currently operates 44 locations in six states.
David Birzon, who has been Snooze’s CEO since 2012, will remain in that position.
Birzon said he is “thrilled” with the Brentwood investment and “thankful for the continued support from Stripes and ACG.”
“We are fortunate to have partnered with a group of premier, growth-oriented consumer investors that have provided support and capital to execute our ambitious growth strategy,” Birzon said in a statement. Listen to Birzon on a 2018 episode of the RB podcast “A Deeper Dive.”
Rahul Aggarwal, a partner with Brentwood, will join Snooze’s board of directors. He called Snooze “a unique and compelling restaurant concept serving the attractive breakfast segment, and we are equally impressed with the company’s strong culture.”
North Point Advisors and Citibank advised Snooze on the transaction while Dechert LLP provided legal counsel. Brentwood was represented by Burr & Forman.
The deal is another sign that traditional investments and acquisitions have returned as investors bet on restaurants and flock to concepts that have proven themselves during the pandemic.
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