The Craveworthy Brands is adding another franchise concept to its portfolio. This time it’s coffee.
Craveworthy on Thursday announced an investment in New York-based Gregorys Coffee, a 50-unit chain founded by Gregory Zamfotis, who will remain president of the brand.
Terms were not disclosed. But the investment is similar to Craveworthy’s deal with Big Chicken announced in March, as well as Kinnamōns, which joined the platform a few weeks later.
For Gregorys, Craveworthy becomes managing partner, providing expertise across core business functions, such as operations and training, while allowing Gregorys to maintain the personality that has made it a cult favorite, according to the announcement.
Joining in the Gregorys deal is growth equity investor The Kitchen Fund, led by Fransmart CEO and founder Dan Rowe and managing partner Greg Culkin. The Kitchen Fund was an early investor in Gregorys, as well as concepts like Cava, Sweetgreen and Dig.
Also involved as a strategic advisor in the Gregorys deal is Branded Hospitality, co-founded by Michael “Schatzy” Schatzberg; as well as private investment firm Harborfield Management Co., which was founded by Ezra Field, a former executive of Subway and Roark Capital.
Gregg Majewski, founder and CEO of Craveworthy, said he fell in love with the Gregory’s brand when visiting New York to work on the Taim Mediterranean concept, which Craveworthy added to its platform last year.
“There are so many Gregs involved in this partnership, it really feels destined we’d end up partnering with a brand called Gregorys,” Majewski said, in a statement, describing the coffee chain as having a “true heartbeat.”
“Gregory has built something special: a cult following, a craft product and a clear identity,” he added. “Our role is to protect that, while layering in the operational firepower to grow thoughtfully.”
Founded in 2006, Gregorys is known for sourcing and roasting coffee “by hand” five days a week in New York City, where the chain operates a roastery. The cafes also offer pastries and other dishes curated by an in-house dietitian. Loyal fans are known as “Gregulars.”
The plan is to franchise, starting in the fourth quarter this year, to bring the coffee chain outside the greater New York area.
With Gregorys, Craveworthy Brands has grown to include about 20 franchise brands, including Bd’s Mongolian Grill, Dirty Dough, Fresh Brothers Pizza, Budlong Southern Chicken, and Wing It On.
Gregorys is among a growing number of coffee concepts hoping to steal market share from Starbucks, which has been struggling to turnaround sluggish sales.
The drive-thru chain Dutch Bros on Thursday reported yet another strong quarter. Earlier this week, Philz Coffee was acquired by private-equity firm Freeman Spogli. Black Rock Coffee Bar last month confidentially filed for an initial public offering.
And China-based giant Luckin Coffee also recently arrived in the U.S., with aggressive plans for growth.
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