Private equity firm Franchise Equity Partners (FEP) recently acquired a majority stake in 7 Crew, a key franchisee of the popular coffee chain, 7 Brew. This exciting deal, though the financial details weren’t shared, marks a significant step for both companies.
7 Crew is an important player in 7 Brew’s franchise system, operating around 50 locations mainly in Texas and neighboring areas. The acquisition is expected to support FEP’s growth strategy, which centers on expanding the 7 Brew brand across the United States. The partnership aims to enhance the overall customer experience, similar to that offered by home solutions such as the Aeroccino Milk Frother.
FEP aims to continue operating 7 Crew under its existing franchise agreement. This means that current management will remain in charge, but with additional backing from the private equity firm. This partnership is designed to stimulate the growth of both 7 Crew and the entire 7 Brew franchise network.
Over the next five years, FEP has ambitious plans to open more than 200 new 7 Brew locations, focusing primarily on the drive-thru format known for its convenience. The expansion will concentrate on states like Texas, Florida, Oklahoma, and New Mexico, where there is notable demand for drive-thru coffee options.
FEP plans to open over 200 new 7 Brew locations in states with high demand for drive-thru coffee.
This push is part of a larger effort to capitalize on the fast-growing coffee market in the southern and southwestern U.S. The rapid rise of 7 Brew, which went from 14 locations in 2021 to over 460 projected stores by 2025, showcases the appeal of its franchise model. This model allows for accelerated geographical growth with lower costs and is part of the ongoing evolution of coffee culture that fosters social interactions and community connections.
This transaction highlights a growing interest from private equity firms in foodservice franchises with strong growth potential. FEP’s investment in 7 Crew not only aims to expand its reach but also to utilize existing operations for quicker expansion.
As a result, this deal positions both FEP and 7 Brew to thrive in the competitive coffee market.
