BroadPeak Capital, led by Edible Arrangements founder Tariq Farid and BlackRock veteran Aseem Khatri, has purchased Roti Mediterranean out of bankruptcy.
The purchase covers all of the fast casual’s 17 restaurants, intellectual property, and recipes. The brand will undergo a “comprehensive transformation,” including operational enhancements, market expansion, and culturally diverse menu innovation featuring influences from South Asian and Pacific cuisine.
The fast casual will join the Edible Brands platform led by Farid’s daughter, Somia Farid Silber, who took over as CEO in October. Roti locations are spread across Illinois, Minnesota, and Washington, D.C.
“Revitalizing Roti is a full-circle moment for me,” Farid, partner and CEO of BroadPeak Capital, said in a statement. “Like Edible Arrangements, Rōti represents nourishment, tradition and connection. With the support of our firm’s deep franchise expertise and alignment with Rōti’s brand values, we’re confident in our ability to transform Rōti into a Mediterranean fast-casual dining leader.”
Roti declared bankruptcy in August 2024 after suffering from higher costs, inconsistent location performance, and tough macroeconomic conditions. The brand was disproportionately impacted by COVID since 50 percent of its footprint is based in downtown trade areas. In April 2021, the company was forced to close 14 of its 42 locations.
The chain was founded in 2006. In 2018, it received a $23 million equity investment led by Chicago-based Valor Equity Partners. In February 2020, the company hired Justin Seamonds as CEO.
After proceeding with bankruptcy, Roti sought investment bank Ravinia Capital to facilitate a sale. Despite positive cash flow, the chain was losing money and needed a buyer before November 2024 to avoid liquidation.
Ravinia Capital managed an expedited sale process, reaching over 9,000 potential buyers. A lead bidder initially emerged but failed to close the deal. This prompted an open auction with eight qualified participants. Most buyers were interested in acquiring leases but not the brand.
However, BroadPeak Capital stepped in during the auction, securing both the intellectual property and most leases, ensuring Roti’s survival.
Roti is BroadPeak Capital’s first investment. The private equity firm is focused on consolidating and scaling “high-potential brands” into the Edible Brands platform. Khatri will lead investment efforts while Farid will oversee the operational strategy.
“With decades of experience as investors and operators, and access to substantial permanent capital, we bring the expertise and flexibility necessary to invest in vision and build enduring businesses,” Khatri, partner and chief investment officer of BroadPeak Capital, said in a statement. “We are actively seeking opportunities to further scale the Edible Brands platform and are truly excited to partner with the Rōti team moving forward.”
