Industry News | September 25, 2002

Raising Capital for Fast Casual Growth

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Executives from a number of national restaurant chains have formed a new capital investment group to help emerging chains, particularly those in the fast casual segment, grow and compete in what has become an increasingly nationalized restaurant market.

According to the Wall Street Journal, Dorsan Management LLC, based in New York City, will raise between $15 million and $20 million. The firm will invest $1 million to $5 million in concepts of five to seven units with the intention to help them grow to 15 to 20.

Senior Manager Darwin Dornbush told the Journal that the aim of Dorsan is to help chains grow faster and on better terms, not to buy them. Ultimately, Dornbush hopes to put chains in a position to go public or be acquired by a larger company.