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Blackstone invests in drive-thru coffee chain 7 Brew

EditorEmilio Ghigini
Published 02/14/2024, 08:50 AM
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NEW YORK & FAYETTEVILLE, Ark. - Blackstone (NYSE:BX), a leading global asset manager, has made a growth equity investment in 7 Brew Coffee, a drive-thru coffee brand known for its rapid expansion and customizable drink options. The investment by Blackstone Growth and affiliated funds is aimed at further accelerating 7 Brew's expansion in collaboration with top franchise partners.

7 Brew, which started with a single coffee stand in Rogers (NYSE:ROG), Arkansas in 2017, offers a menu with over 20,000 drink combinations. The company has grown significantly and has been recognized as QSR Magazine's Breakout Brand of 2023. With Blackstone's investment, 7 Brew aims to leverage Blackstone's industry knowledge and resources to support its growth and franchisee network.

John Davidson, CEO of 7 Brew, expressed enthusiasm for the partnership, highlighting Blackstone's understanding of 7 Brew's culture and the potential to leverage Blackstone's global reach and resources to enter a new stage of growth. Blackstone's expertise in data science, operations, and real estate is expected to bolster 7 Brew's customer service and franchisee support.

Blackstone representatives Todd Hirsch and Katie Storer acknowledged 7 Brew's growth and its redefinition of the out-of-home coffee experience through a combination of personal service, premium products, and efficiency. Brian Cornyn of Blackstone emphasized the firm's thematic investment strategy focused on strong franchise businesses and skilled operators.

Jimmy John Liautaud, Founder of Jimmy John's Sandwiches and a selling shareholder in the transaction, expressed confidence in the continued growth of 7 Brew under the new partnership with Blackstone.

The terms of the investment were not disclosed. Legal counsel for the transaction was provided by Friday, Eldredge & Clark, LLP for 7 Brew, and Simpson Thacher & Bartlett LLP for Blackstone.

7 Brew has expanded from its origins in Arkansas to operate over 190 locations across the United States, offering a variety of coffee and other beverages. Blackstone, with over $1 trillion in assets under management, continues to invest in companies across multiple sectors, aiming to deliver strong returns for its investors.

This report is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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