New Jersey-based Burger King and Popeyes Franchisee Rackson Restaurants has secured a majority investment from City Capital Ventures (CCV), a Chicago-headquartered private investment partnership.
The companies did not reveal the size of the investment made.
Led by co-owner and CEO Chris Johnson, Rackson operates 55 Burger King and Popeyes restaurants in six Northeastern and Mid-Atlantic US states.
The money will be used by Rackson Restaurants for the development of a multi-branded QSR platform in Northeastern US marketplace.
Johnson said: “I am excited to partner with CCV at this critical moment in Rackson’s growth journey. CCV stood out as an exceptional partner for the company given their patient, long-term approach, and we share big dreams to build an industry-leading QSR management company.
“Furthermore, the calibre and expertise of CCV and their advisors will strengthen our operational excellence and turbocharge our growth strategy.”
Commenting on the investment, CCV co-founder and managing partner Dan Kipp said: “Rackson has a strong presence in the Northeast and Mid-Atlantic with an attractive, profitable base of restaurants, and we look forward to supporting Chris Johnson as he continues to focus on operational excellence and growth through acquisition.”
It is CCV’s second investment into the Burger King system. It acquired Canada’s largest Burger King franchisee, the Redberry Group, in 2019.
As part of the investment, Kipp will join Rackson’s board of directors.
The investor group consists of Saxonwold Capital, which is led by Rob Selati, the current senior adviser at Madison Dearborn Partners.
Selati will assume the role of Rackson’s chairman and will be joined by Gary Graves, an operating adviser of CCV.
Selati said: “CCV and its operating advisers have extensive experience in the Burger King System through Redberry, as well as the restaurant industry in general. I am confident we will quickly leverage this knowledge to help Rackson achieve its strategic growth plan and build meaningful equity value in the years ahead.”