Operations

Shake Smart lands investment from NewSpring

Photo: https://shakesmart.com/our-story/

March 14, 2024

Shake Smart, which serves protein shakes, protein smoothies, acai bowls, wraps, nut butter and avocado toast, has landed an investment from NewSpring, a family of private equity strategies. Terms of the transaction were not disclosed, but Shake Smart, specializing in serving non-traditional venues, including colleges airports, hospitals and military installations across the U.S., will use the funds to help it expand.

"Shake Smart was founded to provide healthy, delicious and nutrient-dense food and beverages to students and consumers with increasingly on-the-go lifestyles," co-founder and CEO Kevin Gelfand said in a company press release. "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 (former president of Saladworks) 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 transaction is the third out of NSF II, NewSpring Franchise's dedicated investment fund, and is consistent with the strategy's approach to targeting capital-efficient, consumer-facing, multi-unit businesses with a strong customer value proposition, proven unit-level economics and exceptional management teams in the lower-middle market, Ponnuru said. The strategy's recent investments include Blo Blow Dry Bar, Duck Donuts, Central Bark, Federal Donuts and Chicken and Green Home Solutions.

"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. "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."

Gelfand and his team will continue to run Shake Smart and Ponnuru and Patrick Sugrue will join the Shake Smart Board of Directors.

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.