Shake Smart, a fast casual concept with blended drinks, acai bowls, wraps, and sandwiches, has received an investment from private equity firm NewSpring Franchise. Terms of the transaction were not disclosed.
According to a release, Shake Smart will use the investment for rapid unit expansion on college campuses, where it currently operates more than 45 units in 20 states. It will also expand outside of the higher education space as consumers’ demand for healthy, convenient food options increases.
"Shake Smart was founded to provide healthy, delicious, and nutrient-dense food and beverages to students and consumers with increasingly on-the-go lifestyles," CEO/co-founder Kevin Gelfand said in a statement. "Our team has successfully grown the concept to over 45 locations across the U.S. I am excited to partner with NewSpring Franchise founders Satya Ponnuru and Patrick Sugrue as Shake Smart looks to accelerate unit openings even further in this next phase of growth. Their investment and operating experience will be integral as we continue our expansion."
Shake Smart’s existing executive team will remain in place, including Gelfand, who founded the concept in 2011. As part of the transaction, NewSpring’s Satya Ponnuru and Patrick Sugrue will join the Shake Smart board of directors.
"Shake Smart is a leader in the growing healthy fast-casual category, establishing its brand and customer value proposition with a differentiated product offering. It represents exactly the type of company we seek to apply our proven approach to building multi-unit brands," Ponnuru said in a statement. "Together with our deep networks, access to human capital, and experience in the franchise restaurant industry, we hope to infuse Shake Smart with the right balance of operational expertise and infrastructure to enable its continued fast growth nationwide."
NewSpring targets investments toward lower-middle market, multi-unit, high-performing franchise brands across several sectors. Its recent investments include Blow Dry Bar, Duck Donuts, Central Bark, Federal Donuts and Chicken, and Green Home Solutions. Tecum Capital and NorthCoast Mezzanine provided mezzanine debt financing and equity co-investment for this transaction. Miller & Margin PLLC served as counsel for NewSpring, and Shake Smart management was advised by Brookwood Associates and Davis Wright Tremaine LLP.
Contact Alicia Kelso at [email protected]