Freeman Spogli has invested in a number of restaurant concepts over the years, according to the press release, including El Pollo Loco, Popeyes and First Watch. 

Sadarangani said that this restaurant investment experience made the private equity firm an ideal partner for the coffee chain, which is looking to expand its store count. Philz has been backed by private equity of some kind for more than a decade and the acquisition is not a major change for the brand, according to an FAQ website Philz set up about the acquisition. 

“We want to reassure all employees that we have no plans to make any changes to the team. It is expected that benefits, pay, raises, hours, and promotions will continue as the company has operated historically,” the coffee chain wrote

According to the FAQ, the company “will be paying a thank you bonus to each and every team member in our stores, roasting facility, and home office.” A number of former employees — 10 according to the FAQ — will lose the value of stock purchased at a higher price some years ago. The size of the thank you bonus was not disclosed.

“There are no plans to close stores, and in fact we have an exciting pipeline of new store openings planned over the next 24 months,” Philz wrote. 

2025 has seen a relatively high level of restaurant M&A activity, despite the macroeconomic headwinds buffeting the industry. Since the start of June:

• Dave’s Hot Chicken sold a majority stake to Roark Capital.
• Krispy Kreme offloaded a $175 million stake in Insomnia Cookies.
• Brix Holdings was bought by a Friendly’s franchisee. 
• Olo sold itself for $2 billion; SPB Hospitality sold off one of its brands.
• Leichtman Levine Capital Partners bought Shipley Do-Nuts. 

With Darden considering a sale of its troubled Bahama Breeze brand and Jack in the Box exploring strategic alternatives for Del Taco, the summer of 2025 could end up being an exceptionally busy time for the restaurant industry in terms of mergers and acquisitions.

Such investor appetite for the industry comes at an interesting moment. Same-store sales for many major chains are down, and real estate transactions — especially for casual dining brands —  remain depressed. With recent major downward revisions to employment projections, looming tariff trouble and consumer reticence yielding lower tips, it’s unclear how long investor interest in new concepts will remain strong. If economic trouble becomes serious enough, it’s likely that more M&A deals will involve devalued assets, as seen in Hooters of America’s recent sale.

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