Black Bear Diner on Monday announced that it has received an investment from PWP Growth Equity, a private equity fund managed by Perella Weinberg Partners that invests in growth-focused lower market companies.
Terms of the deal were not disclosed, but the investment will enable the 75-unit Redding, Calif.-based family-dining chain to prepare for a nationwide expansion. Black Bear will use the funds to invest in systems and processes to support its growth while adding locations in new and existing markets.
“This is an exciting opportunity for us to build a robust national footprint and share our brand with so many more customers,” Bruce Dean, Black Bear’s president and co-founder, said in a statement. “Our plan is to nurture this investment by focusing on smart, steady growth. That philosophy remains unchanged even as we eye national expansion. PWP Growth Equity understands and shares that vision and we’re thrilled to partner with them.”
Under the deal, Dean and Black Bear’s entire executive team will remain in their current roles and will guide the chain in its next phase of growth, the company said.
Black Bear is a “bear-themed” concept, built like a lodge, that serves “bear-sized” food portions. The chain was founded in 1995 in Mt. Shasta, Calif., and has enjoyed considerable growth recently. In 2015 it recorded systemwide sales of $180 million. That was up 18 percent from 2014 system sales, which were up 13 percent from 2013.
The chain’s same-store sales have increased for 20 straight quarters. Franchisees operate most of Black Bear’s locations, and the chain expects to open 16 new locations in 2016 with a mix of franchisee and company-owned locations.
Black Bear’s restaurants have average sales of about $2.55 million, according to Nation’s Restaurant News estimates, up 7.1 percent from the previous year.
The company’s investment from a major private equity firm in PWP signals the recent growth of family dining, which has enjoyed a couple of strong years after more than a decade of decline.
Private-equity groups had largely been concentrating their investments in fast-casual concepts that promise strong growth. But the funds from a PWP indicate faith in the potential for the family dining chain to continue to expand successfully.
“We are pleased to be partnering with Bruce and the entire Black Bear Diner team to help the company achieve its growth potential,” Chris Baird, co-head of PWP Growth Equity, said in a statement. “Black Bear offers a differentiated family-dining experience centered on high-quality ingredients, made-from-scratch menu items and an unmatched dining experience. We look forward to bringing this unique concept to a broader market through our investment.”
Contact Jonathan Maze at [email protected]
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