Walnut Street Capital Acquires Saxbys Coffee

By: Saxbys Coffee | 58 Shares 875 Reads

Saxbys' corporate headquarters to relocate to Philadelphia

PHILADELPHIA, Pa.-August 13, 2007 -Today Walnut Street Capital announced its acquisition of Saxbys Coffee, a 27-location gourmet coffee shop chain based in Atlanta, Ga. for an undisclosed sum. With the acquisition, Saxbys' corporate headquarters will relocate to Philadelphia's Curtis Center in August, providing 25 new jobs within the next 18 months.

One of Saxbys' first Philadelphia-area locations was developed by Joe Grasso at The Pavilion Center in Lansdale, Pa. Grasso, principal and founder of Walnut Street Capital, was so impressed with the concept that he started negotiations to buy into the company.

"We think Saxbys Coffee has the right business model to grow quickly in the gourmet coffee industry," Grasso says. "Coffee shops are one of the fastest growing segments of the food service industry, and there is a pent-up demand for a localized alternative to the industry's dominant player. Saxbys provides a national infrastructure to franchisees and through independent ownership, we increase our local reach. Our shops carry the character and fabric of the communities we serve through programs designed to support area churches, schools and businesses. "

"The addition of Saxbys to our Lansdale center has been a winning investment, bringing increased foot traffic, visibility, and buzz to The Pavilion. This has made the entire center an even more desirable destination for members of the community. We've enhanced our location by providing live music, which harkens back to the original coffee shops of the 1960s."

Nick Bayer, current President and CEO of Saxbys Coffee, will lead the company for Walnut Street Capital. A four-year industry veteran and graduate of Cornell University, the nation's premier hospitality management school, Bayer will provide daily oversight of the company's operations.

"Our affiliation with Joe Grasso and Walnut Street Capital is a win/win for both companies," Bayer says. "Joe Grasso has successfully developed retail concepts throughout his career, and he has the knowledge, contacts, and real estate experience to propel our business model nationally.

"At Saxbys, we have a winning model that has significant potential for growth. Today, the coffee business is stratified-with one dominant national player and over 20,000 independent 'mom and pop' coffee shops. Saxbys combines the best of both worlds: a retail concept that can be expanded nationally, but suits local tastes and retains a smaller neighborhood feel."

Saxbys has aggressive growth plans that will be executed over the next 5+ years. Founded in 2005, the company currently has 27 locations across the country, and is expected to add another 40 locations within the next six months.

Saxbys coffee is slow roasted from Grade 'A' Arabica beans to provide a flavorful, enjoyable brew. Its award-winning coffee is recognized as consistently high quality with a smooth and enjoyable palette. Premium loose leaf teas, locally prepared pastries, and offerings such as Jet Tea smoothies and Saxbys signature Frolattes® round out the company's menu offerings.

About Walnut Street Capital
Walnut Street Capital (http://www.walnutstcapital.com/) is a private real estate development and investment company based in Philadelphia, Pa. The company's signature properties are the historic Curtis Center and the Public Ledger Building directly across from Independence Hall in Philadelphia. Walnut Street Capital's real estate portfolio is currently valued at $200 million.