NewSpring, a family of private equity strategies, has announced that NewSpring Franchise, its dedicated strategy focused on investing in innovative franchise and multi-unit concepts, has completed a growth equity investment in Federal Donuts, the Philadelphia-based culinary pioneer in the fast-casual space with donuts, fried chicken and coffee. The investment will be used to help the brand expand by opening new locations throughout the Mid-Atlantic and beyond.
“We have a product that people love and we love to serve. Since 2020, we’ve opened three beautiful new stores in Center City that we’re really proud of. Taking this next step to partner with NewSpring will give us the opportunity to be a part of so many more neighborhoods and fulfill our potential,” says Tom Henneman, partner and chief executive officer of Federal Donuts.
Founded in 2011, Federal Donuts has become an institution in the Greater Philadelphia area thanks to its affordable comfort classics and unexpected flavors. It currently has eleven locations, including inside Whole Foods Markets and sports and entertainment arenas. By partnering with NewSpring, Federal Donuts will gain access to capital, infrastructure, technology and additional resources that will facilitate its continued growth.
“We’ve been doing this for 20 years, and Federal Donuts is the most fun we’ve ever had in the restaurant business. NewSpring really understands our industry, and we’re going to have a lot of fun building FedNuts’ next chapter together,” says Steve Cook, partner of Federal Donuts and co-owner of CookNSolo Restaurants.