Smashburger Inks First Joint Venture Partnership with Wichita Group for 10 Locations
New JV Partners Will Help Build Out Smashburger Locations in Wichita, Tulsa and Oklahoma City
DENVER--(BUSINESS WIRE)--Smashburger, a fast-casual "better burger" concept recently launched and funded with $15 million by private equity and concept development firm Consumer Capital Partners (CCP), has secured its first joint venture (JV) partner, Smashburger WTO Acquisition, LLC. The group, which will build out Wichita, Tulsa and Oklahoma City, includes several successful area real estate developers as well as an experienced multi-unit franchise operator. The partnership with Smashburger WTO Acquisition, LLC., follows the recent announcement of a 30-store franchise deal with New Jersey-based Mascott Corporation for development in North East New Jersey.
"The joint venture model we are pursuing with our Kansas and Oklahoma build out provides us with local real estate and operations expertise while allowing us to stay more actively engaged in the development of our presence in that area of the country," said David Prokupek, Managing Partner and Chief Investment Officer of Consumer Capital Partners. "Aligning ourselves with capital and expertise in the local markets we enter will significantly enhance a smart, yet rapid rollout of Smashburger in this important geographic area."
The Wichita JV deal complements Smashburger's seven corporate locations in Colorado. The Company plans to grow its corporate footprint to a total of 10-12 stores by the end of 2008 and as many as 30-60 stores by the end of 2009 on its way to achieving a strong national footprint.
"The investment team we put together has deep real estate development experience and when we saw the concept and the unit level economics, we immediately recognized the significant growth potential that Smashburger represents," said Lindy Andeel, area real estate developer and owner of local Wichita favorite the Scotch and Sirloin. "Wichita, Oklahoma City and Tulsa are prime development opportunities and we look forward to working with both the Smashburger and CCP executive teams to make Smashburger's rollout here a tremendous success."
"In addition to the fact that I have a little bias towards Wichita because it's my home town, today's announcement adds further validity to our intentions of becoming the top national brand in the better burger category," said Scott Crane, President of Smashburger. "To be certain, while Wichita, Tulsa and Oklahoma City are markets that embrace the concept of a better burger, there is also little room for error. Those markets understand beef and what it takes to offer a great quality burger at the right price. We proudly look forward to becoming their favorite burger place in the near term, as well as driving job creation and revenue for their local economies in the long term."
Headquartered in Denver, Colo., Smashburger is an innovative fast-casual restaurant concept featuring "the best burgers you ever tasted." Developed and owned by private equity and concept development firm Consumer Capital Partners, Smashburger intends to expand to 10-12 restaurants by the end of 2008 and another 30-60 corporate stores in 2009 on its way to becoming the national better burger leader. There are currently seven restaurants located in the Colorado area. If you crave a better burger, keep watching for Smashburger--coming to your community soon!
About Consumer Capital Partners
Headquartered in Denver, Colo., Consumer Capital Partners is an innovative private investment, concept development and strategic advisory firm focused on multi-unit retail businesses, primarily in the restaurant, liquor, food and leisure industries. Consumer Capital Partners has deep experience in the fields of private equity, brand, concept and product development, and strategic consulting.