Co-founders Peter Phillips and Teddy Gailas partner with investment group to accelerate growth plans to scale gourmet cookie concept beyond New York City and strengthen brand position within the competitive cookie segment.
(RestaurantNews.com) Enlightened Hospitality Investments (EHI), the growth equity fund associated with Danny Meyer’s Union Square Hospitality Group (USHG), has invested $10 million in New York-based Chip City Cookies, a gourmet cookie brand that rotates its flavorful and sizeable cookies on a weekly basis.
“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,” said Meyer, a co-founder and Managing Partner of EHI. “Beyond the cookies, which speak for themselves, we are excited to support the growth aspirations of the passionate team behind Chip City, who exemplify our values of hospitality and community.”
The investment from EHI is icing on the sugar cookie for the Chip City team. EHI’s investment will provide Chip City with not only capital but also deep expertise in fast casual retail operations and an unparalleled focus on hospitality and people. EHI provides strategic and operational guidance in partnership with the team at USHG, which operates some of the country’s most beloved and acclaimed restaurants, including Union Square Cafe and Gramercy Tavern, and founded Shake Shack in 2004.
“This is another incredible validator for the brand and the business mission we have – to make communities smile through the quality of our products and to make our employees feel purpose in their communities,” said Peter Phillips, founder.
Born in Astoria, Queens in 2017, Chip City Cookies began as a hobby between childhood friends Phillips and Teddy Gailas, as the duo challenged each other on who could make the best cookie. A small storefront, some equipment, and a dream led the entrepreneurial team to listen to that feedback and open store one.
Today, Chip City currently has 14 locations across Manhattan, Brooklyn, Queens and Long Island with plans to enter into new markets, including New Jersey and Florida. The investment will help support the brand’s multi-state expansion and growth of its direct-to-consumer business, bolstered by its ship-anywhere partnership with Uber Eats.
“This investment and partnership gives us the tools to accelerate our growth strategy,” Gailas said. “It wasn’t just the money that was attractive about this deal, it was the association and mentorship from leaders who have done this before.”
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