US-based cookie and coffee chain Chip City Cookies has secured a $10m investment from Shake Shack founder Danny Meyer to fund its expansion plan.
The investment was made via Enlightened Hospitality Investments (EHI), a growth equity fund of Danny Meyer’s Union Square Hospitality Group (USHG), according to Forbes.
Established in 2017 by Peter Phillips and Teddy Gailas, New York-based Chip City Cookies currently operates 14 locations across Manhattan, Brooklyn, Queens, and Long Island.
Its offerings include a wide range of cookies such as blueberry cheesecake, funfetti, cookies n’ cream, s’mores, oatmeal apple pie, and lemon berry.
EHI co-founder and managing partner Danny Meyer was quoted by various media sources as saying: “At EHI, we are always looking for businesses that have created craveable products and have earned a tribe-like following. Chip City checks both of those boxes in a significant way.
“Beyond loving their irresistible cookies, we have such enormous admiration for the purpose-driven leadership team at Chip City.
“Our cultures are deeply aligned, and that will make it all the more fun and uplifting to exchange learnings and experiences as the company continues to delight new communities with its cookies.”
EHI’s investment will not only help Chip City’s brick-and-mortar expansion but would also bolster its nationwide shipping business with Uber Eats, according to QSR magazine.
The investment will be used by Chip City to open a new manufacturing plant in Florida.
It also plans to open new stores in Boston, Connecticut, and Washington DC areas.
The cookie and coffee chain plans to open more than 20 outlets in 2023.