St Louis, Missouri-based private equity company Thompson Street Capital Partners (TSCP) has acquired New Jersey-based Bubbakoo’s Burritos, a fast-casual Mexican-fusion restaurant franchisor, for an undisclosed sum.

Bubbakoo’s Burritos was established in Wall Township, New Jersey in 2008 by Bill Hart and Paul Altero, with a twist on traditional Mexican offerings.

The brand, which emphasises made-to-order food, began franchising in 2015 and has since grown to 130 locations across 15 states, primarily on the US East Coast and in the Midwest.

This strategic acquisition by TSCP comes as the fast-casual category continues to outpace other foodservice segments.

Consumer trends show a preference for flavourful, customisable cuisine and investors are gaining interest in scaleable restaurant concepts.

Legal advice for the transaction was provided by Sidley Austin.

TSCP managing partner Bob Dunn  stated: “Bubbakoo’s has created an innovative and compelling brand that resonates with a broad and growing customer base.”

“Bill and Paul have built something special — an exciting concept with strong franchisee relationships, consistent unit growth and a passionate following. We are thrilled to partner with the team as they enter this next phase of expansion.”

Bubbakoo’s co-founder Altero added: “Thompson Street Capital Partners brings deep experience in scaling founder-led businesses and shares our passion for supporting franchisees and delivering great experiences to customers.”

“With their support, we’re confident Bubbakoo’s can accelerate its growth into new markets, invest in technology and infrastructure, and continue building a world-class franchise system.”

In February 2024, Bubbakoo’s Burritos launched an outlet in West Haverstraw, New York, marking the 15th location for franchise operators Perry and Fenil Patel.