Shake Smart, known for its fast-casual offerings including blended drinks, acai bowls, wraps, and sandwiches, has secured an investment from private equity firm NewSpring Franchise. While the terms of the deal were not disclosed, Shake Smart plans to utilize the investment to fuel rapid expansion, particularly on college campuses, where it currently operates more than 45 units across 20 states. Additionally, the brand aims to extend its footprint beyond higher education institutions in response to growing consumer demand for healthier and convenient dining options.
CEO and co-founder Kevin Gelfand emphasized Shake Smart’s mission to provide nutritious and delicious food and beverages to students and busy consumers. Gelfand expressed enthusiasm for the partnership with NewSpring Franchise founders Satya Ponnuru and Patrick Sugrue, highlighting their investment and operational expertise as pivotal for accelerating the brand’s growth trajectory.
Under the agreement, Shake Smart’s existing executive team, including Gelfand, will continue to lead the company. NewSpring’s Satya Ponnuru and Patrick Sugrue will join Shake Smart’s board of directors, bringing with them a wealth of experience in the franchise restaurant industry.
Ponnuru praised Shake Smart’s position as a leader in the healthy fast-casual sector and affirmed NewSpring’s commitment to leveraging its resources and network to support the brand’s expansion goals. NewSpring Franchise focuses on investing in high-performing franchise brands in the lower-middle market, with recent investments including Blow Dry Bar, Duck Donuts, and Central Bark.
The transaction also involved mezzanine debt financing and equity co-investment from Tecum Capital and NorthCoast Mezzanine, respectively. Legal counsel for NewSpring was provided by Miller & Margin PLLC, while Shake Smart management received advisory services from Brookwood Associates and Davis Wright Tremaine LLP.