Shake Smart, a 45-unit better-for-you brand, received a key investment from NewSpring, a private equity firm dedicated to growing multi-unit franchise concepts.
Terms of the transaction were not disclosed.
The California-based fast casual is known for its protein shakes, protein smoothies, açaí bowls, wraps, nut butter, and avocado toast across multiple dayparts. Most of Shake Smart’s footprint—spread out through more than 20 states spanning coast to coast—is near college campuses. The chain plans to use NewSpring’s capital to continue that expansion strategy. Shake Smart’s model fits well with nontraditional venues, meaning there will be more opportunities down the road in airports, hospitals, and military bases.
“Shake Smart was founded to provide healthy, delicious, and nutrient-dense food and beverages to students and consumers with increasingly on-the-go lifestyles,” Shake Smart cofounder and CEO 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.”
The brand was founded in 2011 to make on-the-go healthy food more accessible. The company’s signature shakes feature 25-plus grams of protein, fruits and vegetables, whey isolates, and no concentrates, purees, or artificial/processed sugars.
Gelfand and his team will continue to run the company. Ponnuru and Sugrue will join the board of directors. NewSpring’s previous investments include Duck Donuts and Federal Donuts and Chicken.
“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.”
Tecum Capital and NorthCoast Mezzanine provided mezzanine debt financing and equity co-investment for the transaction. Miller & Martin PLLC served as counsel for NewSpring, and Shake Smart management was advised by Brookwood Associates and Davis Wright Tremaine LLP.
