Craveworthy Brands, a growing restaurant platform created in 2022 by a former Jimmy John’s CEO, is gathering investors for its next growth phase. And that could be anyone—accredited and unaccredited.
The company is using regulated crowdfunding as a vehicle to raise money, in which investors receive securities in return. In this case, Craveworthy is offering up to $5 million worth of Class A units. The minimum investment per person is $500. Thus far, the company has raised nearly $450,000, and the fundraising period closes in April.
If the company reaches its $5 million goal, it will use $3 million for store build outs, $500,000 for brand acquisitions, $375,000 for working capital, and $325,000 to pay off expenses related to the crowdfunding operation.
READ MORE: Craveworthy Brands Isn’t Afraid to Dream Big
Craveworthy was formed toward the end of 2022 when it acquired existing chains Wing it On! and The Budlong Hot Chicken and created Krafted Burger + Tap and virtual concept The Lucky Cat Poke Company. It later added Mongolian Concepts Restaurant Group, the parent of Genghis Grill, Flat Top Grill, and BD’s Mongolian Grill. Other subsidiaries on the horizon are Mediterranean brand Soom Soom and virtual concepts Scramblin Ed’s (breakfast sandwiches, wraps, and bowls) and Pastizza (Italian favorites).
The largest entity in the portfolio is Genghis Grill, which has 44 locations (28 corporate and 16 franchised) and 24 more in development. That’s followed by BD’s Mongolian Grill (16 units), Wing It On! (12 units), The Budlong Hot Chicken (five units), Flat Top Grill (four units), Krafted Burger Bar + Tap (two units), and the Lucky Cat Poke Company (one brick and mortar and 42 ghost kitchens).
Combined, Craveworthy’s chains are open in 24 states. As of December 13, there were 40-plus franchised units that had been sold, but not open yet. In 2024, the development team set a goal to award 125 franchise locations by year-end. The company also wants to acquire more chains, open 17 corporate units, and debut 60 virtual restaurant stations this year. The platform projects $1 billion in systemwide sales within approximately five years
Craveworthy aims to acquire legacy, emerging, and virtual restaurant brands in the fast-casual space. The company wholly owns all of its concepts, except for Soom Soom, where it owns 50 percent of franchising rights. There are plans to start selling franchise locations during the first half of 2024.
At the helm is CEO Gregg Majewski, who served as Jimmy John’s from 1998 to 2003. During his tenure, he led the expansion of the chain from 33 to 300 restaurants, facilitated the sale of 600 franchises, and achieved a 7.4 percent increase in gross margins within two years. As an industry veteran, he spearheaded the introduction of innovative incentive, training, and franchise programs, as well as the successful implementation of Jimmy John’s renowned “Freak Fast” delivery marketing strategy. Prior to this role, he was CEO of Mongolian Concepts Restaurant Group. Majewski’s team has backgrounds from brands such as McDonald’s, First Watch, Einstein Bros. Bagels, Roti, and Giordano’s Pizza. Greg Creed, a former CEO of Yum! Brands, is an advisory board member.
