7 Brew and Jimmy John’s founder Jimmy John Liautaud are no longer growth partners.
The sandwich chain veteran sold his shares as part of a transaction that brought in Blackstone Growth as an equity investor. Terms of the deal were not disclosed.
Three years ago, Liautaud and Lone Star Steakhouse founder Jamie Coulter acquired a majority interest in 7 Brew under a company called Drink House Holdings. The intent was to inject capital and launch a franchising program. Since that point, the coffee brand has expanded from nine stores to nearly 200 shops—staking its claim as one of the fastest-growing quick-service companies in the country.
“I am truly honored to have had my mentor, the legendary Jamie Coulter, ask me to help launch franchising for this exceptional brand,” Liautaud said in a statement. “I am confident that the Brew Crew, management and Blackstone will continue to drive exponential growth.”
Because of the brand’s rapid expansion, it was named QSR’s 2023 Breakout Brand of the Year. The company’s FDD states there were 2,000 store commitments as of December 2022. CEO John Davidson has said publicly that it’s increased to more than 2,500 and is on track for 3,000.
The brand’s current path began in January 2020 when it was acquired by Brew Culture, a parent company formed by Davidson and a group of entrepreneurs. Each shop, constructed offsite and then placed onto a designated plot of land, boasts canopied double drive-thrus. As per the FDD, standard 7 Brew stores necessitate a lot ranging from 8,000 to 50,000 square feet, accommodating a modular building of approximately 500 square feet. Typically situated as out-parcels to shopping centers with highway visibility or nearby, the total initial investment required to begin operations ranges from approximately $900,000 to $1.9 million.
7 Brew’s FDD shows that 14 measured locations (13 company-owned units and one franchise) earned more than $2.3 million in average gross sales in 2022, with the highest-performing outlet exceeding $3.1 million. There were no store closures between 2020 and 2022.
“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,” Davidson said. “Blackstone brings everything we are looking for to help serve our customers and support our franchisees—industry and market knowledge, franchisee relationships, data science, operations and real estate expertise.”
Blackstone intends to unlock even more growth for 7 Brew, a brand that offers more than 20,000 beverage combinations. The firm is the world’s largest alternative asset manager. It has more than $1 trillion in assets under management.
“7 Brew’s impressive growth to date is a testament to its strong team and franchisee partnerships,” Blackstone representatives Todd Hirsch and Katie Storer said in a statement. “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.”
