Scooter’s Coffee, a drive-through coffee chain based in the US, is evaluating a possible sale that could value the privately held business at $1bn, as reported by Reuters.
The company, founded by Don and Linda Eckles, has enlisted Bank of America and RW Baird to handle the sale process.
The chain, established in 1998 in Bellevue, Nebraska, operates more than 850 locations across 30 US states using a franchise model.
Its coffee is sourced from Harvest Roasting, an affiliated entity.
Scooter’s generates annual revenue close to $500m.
Bank of America declined to provide a statement, while Scooter’s, RW Baird and McCarthy Capital, a stakeholder in the company, did not respond to Reuters’ inquiries.
McCarthy Capital, an Omaha-based investment company focused on mid-market businesses, acquired a stake in Scooter’s in 2018.
Private equity firms have shown increasing interest in franchise-based restaurant chains due to their consistent royalty income and cost-effective operations.
Recent transactions include Blackstone Growth’s investment in drive-through coffee chain 7 Brew and the acquisition of Jersey Mike’s Subs by Blackstone’s main private equity fund in 2024.
Roark Capital purchased Dave’s Hot Chicken in 2024 and finalised its acquisition of Subway in 2023.
Dutch Bros, a comparable drive-through coffee chain, went public in 2021 with a valuation exceeding $5bn after being backed by private equity firm TSG Consumer.
