Arkansas-based drive-thru beverage concept 7 Brew Coffee has received a growth equity investment from Blackstone Growth to accelerate its expansion across the U.S. Terms of the transaction were not disclosed.
7 Brew first opened in 2017 and has since grown to more than 190 locations, generating a more than 185% growth rate from 2021 to 2011, according to Technomic Ignite data. During a recent interview, CFO Nicole Miller Regan said there were approximately 2,000 stands under development agreements at the end of 2022.
“The opportunity is just massive, and anything is possible. The whole idea of what we’re doing translates across the globe. We want to break sales and development records,” she said.
This Blackstone investment will certainly help toward that goal. Blackstone has over $1 trillion in assets under management in several sectors.
“We are on a strong growth trajectory thanks to our outstanding team, the Brew Crew, and are so excited to have found in Blackstone a true partner who understands our culture and whose global reach and incredible resources will enable us to reach this next stage of growth,” 7 Brew CEO John Davidson said in a statement. “Blackstone brings everything we are looking for to help serve our customers and support our franchisees – industry and market knowledge, franchisee relationships, data sciences, operations, and real estate expertise.”
In a joint statement, Blackstone’s Todd Hirsch and Katie Storer recognized 7 Brew’s “impressive growth to date,” noting it is a testament to its strong team and franchisees.
“We are excited to partner with this business that is redefining the out-of-home coffee experience by marrying a personal, human-centric customer service experience with premium products and exceptional efficiency,” they said.
Jimmy John Liautaud, founder of Jimmy John’s Sandwiches, is a selling shareholder in this transaction. He was one of the initial majority investors in 7 Brew after forming Drink House Holdings alongside Lone Star Steak House founder Jamie Coulter.
Contact Alicia Kelso at [email protected]
