Franchise-focused private investment firm Gala Capital Partners has acquired the Minnesota-based coffee chain Dunn Brothers Coffee, which currently has 59 franchise locations in seven states.
The terms of the sale have not been publicly disclosed.
“We believe Dunn Brothers is the best-kept secret in the coffee segment and we look forward to working with the management team and franchise partners to bring this great product and brand to the rest of the world,” Anand Gala, the founder and managing partner of Gala Capital Partners said in an announcement of the deal.
Gala Capital Partners has amassed three decades worth of investments in franchises the food, real estate and software industries. The firm is currently has investments in the fast food brands Cicis Pizza, Mooyah Burgers, Famous Dave’s and many more.
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Dunn Brothers, meanwhile, was founded with an initial Saint Paul location in 1987 by Ed and Dan Dunn, who came to the Twin Cities from Portland, Oregon, after amassing professional green coffee and roasting experience.
The company now has locations in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, Texas, and Missouri.
As a franchisor, Dunn Brothers is unique in the coffee sphere in that coffees are roasted in small batches at individual store locations, rather than at large centralized production locations.
In franchisees, the company seeks owners with urban or suburban locations and the ability to roast on-site while prioritizing drive-through service. The company has also historically worked with importers such as Minneapolis-based Cafe Imports to promote single-origin coffees and coffee bearing sustainability certification marks.
According to Dunn Brothers’ own marketing materials, the cost of opening a franchised shop has been anywhere from $421,020 to $700,932.
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Nick Brown is the editor of Daily Coffee News by Roast Magazine.