CapitalSpring

Through a strategic partnership with&nbsp;<a href="https://www.capitalspring.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-capitalspring-is-powering-the-next-era-of-growth-for-cafe-yumm-2731267" target="_blank" rel="nofollow">CapitalSpring</a>, the fast casual franchise concept&nbsp;<a href="https://www.cafeyumm.com/about/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-capitalspring-is-powering-the-next-era-of-growth-for-cafe-yumm-2731267" target="_blank" rel="nofollow">Café Yumm!</a> is modernizing its systems, expanding its reach and strengthening its ability to serve guests across the Pacific Northwest while staying true to the mission and values that have defined the brand for more than three decades.“Café Yumm! was co-founded in the 1990’s. One of its cofounders, Mary Ann Beauchamp, was an Army brat who traveled extensively around the world. Her dad liked beans, her mom liked rice, and she liked both. So a lot of her recipes were connecting those two ingredients,” said&nbsp;<a href="https://www.linkedin.com/in/kimberly-boone-223835270?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-capitalspring-is-powering-the-next-era-of-growth-for-cafe-yumm-2731267" target="_blank" rel="nofollow">Kim Boone</a>, president of Café Yumm! “The signature Yumm! Sauce she created was originally meant to entice her toddlers to eat at restaurants. At the restaurant she owned, she cooked all the ethnic dishes she loved, but the rice and bean bowl with its signature sauce was what made the restaurant so popular. The name of the brand is derived from how much the customers loved the dish!”From the beginning, the founders built the company around a triple bottom line mindset — people, planet and profits — long before it became a widespread business standard.“When we make decisions, it might not always be the highest profitability decision,” Boone said. “We start everyone at Café Yumm! 10% over minimum wage, for example, and then they can earn up to three to four raises in the first few months. We have a really great benefits package, and we feed people a meal every day.”The combination of values-based decision-making and a simple, well-executed operating model made franchising a natural step for expansion. “Around 2005, the cofounders realized that they needed to franchise to grow the brand quickly,” Boone said. “It was easy to franchise; they had developed a great business model with simple processes.”Today, Café Yumm! operates 22 restaurants across the Pacific Northwest, with five franchised locations, and has expanded into consumer packaged goods through a growing grocery line.<h2>Why Café Yumm! Chose CapitalSpring</h2>The next phase of growth required a partner aligned not only with the brand’s ambitions, but also with its worldview.The decision to partner with&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a> came after a significant turning point for the company. “The founder’s husband passed away a few years ago, and that is when we started embarking on this new growth phase,” Boone said. “We engaged a broker and they introduced us to CapitalSpring.”Before closing the transaction, both teams invested significant time in getting to know one another. That process reaffirmed their alignment in mission and philosophy. “We were recently at a conference and I had so many people tell us how wonderful it is to work with the CapitalSpring team,” Boone said. “Having that validation from others was really neat.”For Boone,&nbsp;<a href="https://1851franchise.com/capitalspring/capitalspring-franchise-times-webinar-emerging-brand-growth-2730527#featured">CapitalSpring’s reputation and relational approach</a> made all the difference. “It’s their network of resources that is so important, whether it be working with consultants on packaging and design, or the real estate team, or the data and technology experts,” she said. “We wouldn’t have access to consultants or vendors of this caliber without them.”<h2>Supply Chain, Marketing Repositioning and Real Estate Support</h2>As Café Yumm! prepared for multi-unit expansion, it became clear that major upgrades to the brand’s infrastructure were necessary. For years, the company relied on legacy systems simply because investing in new ones wasn’t feasible.“We had systems that served us as a small brand, but to cue us up for strategic growth, we had to revamp,” Boone said.When it comes to technology, for example,&nbsp;<a href="https://1851franchise.com/capitalspring/capitalspring-franchise-private-equity-podcast-2729867#featured">CapitalSpring’s support unlocked a full modernization plan</a>. “We’ve worked with a tech consultant; we are revamping our entire tech stack with accounting software, business intelligence software, everything,” Boone said. “We’re launching a new POS with&nbsp;<a href="https://pos.toasttab.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-capitalspring-is-powering-the-next-era-of-growth-for-cafe-yumm-2731267" target="_blank" rel="nofollow">Toast</a>. The reporting capabilities are great, but we didn’t have the capital before to invest in these.”One of the biggest breakthroughs came from implementing&nbsp;<a href="https://www.chabi.io/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-capitalspring-is-powering-the-next-era-of-growth-for-cafe-yumm-2731267" target="_blank" rel="nofollow">Chabi</a>, a business intelligence platform that aggregates data across the new tech stack. “We never had access even to entertain the idea of business intelligence,” Boone said, “but now we can look at our business and metrics in a way we never have before.”Boone emphasizes the transformative impact the partnership has had on the team. “The tech consultant CapitalSpring introduced us to spending 20 to 30 hours with our team just talking about challenges and opportunities,” she said. “They crafted a full plan for us. We would never have had access to someone of that caliber.” And the impact extends far beyond technology.“They’ve introduced us to supply vendors we haven’t had access to,” Boone said. “With only 22 units and a small CPG line, we wouldn’t have access to a vendor of this caliber. Those umbrella contracts create a ton of value and help with logistics, too.”Café Yumm! is also refreshing its consumer brand and marketing strategy to meet the expectations of younger audiences. “The company has been around a long time, and the target market has been moms and millennials,” Boone said. “As Gen Z enters the workforce, we are repositioning our marketing. It’s been incredibly helpful to lean on their expertise.”On the development side, CapitalSpring’s analytics-driven real estate process is reshaping how the brand evaluates new markets. “They offer new site selection assistance; they can analyze data to determine the average income, traffic patterns, and more,” Boone said. “It changes the whole approach.”<h2>A Growth Plan Built for the Future and Built on Data</h2>With CapitalSpring as a strategic partner, Café Yumm! is pursuing a two-pronged growth plan: expanding company-owned restaurants in the Pacific Northwest and scaling its CPG line into a national brand.Much of that growth will come from data-driven operational improvements. “We’re taking a look at all of our costs and finding ways to reduce them,” Boone said. “We are transitioning to an item-based scheduling model and taking a hard look at labor. A lot of that comes back to the tech stack and the data now at our fingertips.”Boone says the relationship works because&nbsp;<a href="https://1851franchise.com/capitalspring/capitalsprings-perspective-on-the-state-of-the-restaurant-industry-and-2025-predictions-2728362">the CapitalSpring team challenges the brand to think differently</a> while still respecting the culture.“CapitalSpring’s approach to business and the way they think about metrics is that they ask a lot of questions and challenge our thinking, but they do it in a way that is focused and thoughtful,” she said. “Not all private equity firms are like that.”For a mission-driven brand like Café Yumm!, choosing the right partner was essential. With CapitalSpring, Boone says, the team has found an investor that sees the brand’s potential while respecting the values that have shaped it.“I truly believe that the cultural fit was the most important part,” she said. “CapitalSpring has been exactly the kind of partner we hoped for: supportive, collaborative and deeply invested in our long-term success.”For more information on CapitalSpring visit:&nbsp;<a href="https://1851franchise.com/capitalspring/info">https://1851franchise.com/capitalspring/info</a>.The statements above represent the opinions of founders and senior executives of portfolio companies in which private funds advised by CapitalSpring have invested. These individuals are not clients of CapitalSpring and have not received any compensation for their endorsement. Because their companies benefit from a relationship with CapitalSpring, including&nbsp;investments by CapitalSpring and private funds that we advise, conflicts of interest may exist. Past performance is not indicative of future results. These endorsements should not be interpreted as investment advice or recommendations.

How CapitalSpring Is Powering the Next Era of Growth for Café Yumm!

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Café Yumm! is expanding its company-owned restaurants and CPG line, backed by a private equity investment from CapitalSpring, to leverage new technology, data, and supply chain improvements.

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NASHVILLE, Tenn.&nbsp;—&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a>, a leading sector-specialist investment firm focused on franchised and other multi-location businesses, today announced a close resulting in more than $505 million of commitments for its seventh flagship investment fund, just two months after launch. The fund, which targets $1 billion in total commitments, has attracted strong early support from existing limited partners, including state and municipal pension plans, endowments, foundations, and family offices. The firm previously held a final close on its predecessor flagship fund in March 2022 with $950 million in commitments.“We are grateful for the continued confidence and support from our existing investors. All commitments to date are from existing limited partners with almost all investors upsizing their commitment level relative to prior funds.” said&nbsp;<a href="https://www.linkedin.com/in/fitzgeraldrichard/">Richard Fitzgerald</a>, Co-Founder and Managing Partner.This early fundraising momentum follows CapitalSpring’s largest exit to date, the sale of Sizzling Platter to Bain Capital, and coincides with the firm’s 20th anniversary — a milestone year that underscores the firm’s competitive advantage.&nbsp;“This early fundraise success caps a year of significant achievements for CapitalSpring,” said Fitzgerald. “We’ve reached our 20-year anniversary, completed our 300th investment, and surpassed $4 billion invested across more than 100 different brands and franchise systems. The Sizzling Platter transaction represents our first $1-billion-plus exit, validating our strategy and delivering strong results for our investors.”CapitalSpring first partnered with Sizzling Platter in 2019, when the company operated 424 locations across five brands, ranking as the 20th-largest U.S. restaurant franchisee by revenue. Under CapitalSpring’s ownership, the business expanded to over 800 locations across eight brands, entered 15 new markets, and became the sixth-largest restaurant franchisee nationwide with over $1 billion in annual system revenue.Building on this track record, Fund VII will continue to pursue opportunities across the foodservice, franchising, and multi-unit business ecosystem, leveraging CapitalSpring’s 20-year foundation of deep sector relationships, operational expertise, learnings, and best practices.“Our goal remains the same as it has been for two decades,” Fitzgerald added. “We aim to be a flexible, value-added partner—providing not just capital, but the strategic and operational resources that help strong operators unlock their next phase of growth. We’re excited to build on our momentum and continue delivering a differentiated and diversifying return profile for our investors.”ABOUT CAPITALSPRING:CapitalSpring is a specialist private equity and debt investment firm with a 20-year track record of investing in franchises and other multi-location businesses that serve the everyday needs of consumers.  The firm has invested over $4 billion across more than 300 investments in 100+ different brands. CapitalSpring has developed competitive advantages including deep sector expertise, proprietary data/benchmarking analytics, an in-house strategic operations team, and a 20-year foundation of relationships driving consistent flow of non-competitive investment ideas and opportunities. CapitalSpring manages multiple fund vehicles including private debt and private equity strategies focused on the lower middle market and middle market. The firm is headquartered in Nashville and has regional offices in Los Angeles, New York and Atlanta. For more information about CapitalSpring, please visit&nbsp;<a href="http://www.capitalspring.com">www.capitalspring.com</a>.

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CapitalSpring Closes on Initial $505 Million of $1 Billion Target just Two Months After the Launch of its Seventh Flagship Investment Fund 

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For nearly four decades,&nbsp;<a href="https://w.worksbakerycafe.com/franchise.html">The Works Bakery Café&nbsp;</a>has served as a community-driven, Northeast-based legacy brand — but Founder and CEO&nbsp;<a href="https://www.linkedin.com/in/richard-f-french/">Richard French</a> knew longevity alone wasn’t enough. He wanted a partner who could help the brand stay relevant, scale with intention, and strengthen operational foundations.“We’ve been around for 38 years, so I would call us a little bit of a legacy brand,” French said. “What got us here may not get us there.”As he explored the market, he evaluated several growth equity firms. “In my mind,” French said, “<a href="https://www.capitalspring.com/">CapitalSpring</a> was the cream that rose to the top.”<h3>What Set CapitalSpring Apart</h3>French’s decision centered on three major factors: industry experience, franchise expertise and personal fit.&nbsp;<a href="https://1851franchise.com/capitalspring/info">CapitalSpring’s</a> deep specialization in restaurants — from fast casual to QSR to full service — gave French confidence that the team understood the unique pressures operators face. “They’d been around for a few decades, so that was a plus,” he said. “Ninety-plus percent of their portfolio is in our space.”But the final deciding factor was cultural alignment. French describes the team as grounded and collaborative — the kind of partner he believed would navigate tough decisions with integrity. “I found them to be down-to-earth, real people,” he said. “My gut instincts were correct.”<h3>Strengthening Leadership and Operational Infrastructure</h3>One of the most immediate impacts of the partnership was support in building out leadership and strengthening the company’s infrastructure. CapitalSpring provided access to recruiters, participated in interviews and helped shape the senior management team.“They’ve been immensely helpful,” French said. “Access to recruiters, involvement in the interviewing process — as we scale, that’s been important.”CapitaSpring also helped the Works implement more rigorous financial analysis and performance tracking. French notes that their business is now reviewing data at a level of detail that unlocks better decision-making. “We analyze the numbers at a much deeper level than we ever have,” he said. “That could lead to wonderful insights and further refinement of profitability.”<h3>Improving Site Selection and Accelerating Growth</h3>With CapitalSpring’s tools, relationships and experience, The Works rebuilt its approach to development and real estate strategy. The brand now uses a more data-driven process for evaluating sites, forecasting performance, and mapping expansion.“We scrutinize sites in much greater detail than we ever did,” French said. “It’s hopefully more science and less gut.”The partnership has already produced measurable results. In the first 18 months, the brand grew by 30%, supported by robust site-selection frameworks and a development roadmap shaped by CapitalSpring’s playbook.<h3>Leveraging Portfolio-Wide Advantages</h3>Being part of CapitalSpring’s portfolio also brings the benefits of scale — something regional operators often struggle to access on their own. Through negotiated partnerships and shared vendor programs, The Works now receives enterprise-level pricing in several operational categories.“We’re a Toast customer, and we have special pricing because we’re a CapitalSpring portfolio partner,” French said. “They bring pricing for a much larger company.”This extends to everything from linen services to signage to technology platforms. By tapping into a $3-billion-plus portfolio, The Works gains cost efficiencies that directly strengthen margins.<h3>Building the Foundation for the Future</h3>Beyond operational improvements, the partnership is helping the brand prepare for long-term innovation. The Works is exploring new restaurant design concepts, expanded pick-up and drive-thru formats, and modernization initiatives supported by CapitalSpring’s broader network.“We’ve had upgrades in our accounting software — we’re cloud-based now,” French said. “We’ve instituted labor, scheduling and back-of-house software that we didn’t have before.”French also notes upcoming collaboration with Mosley Group to develop “The Works 4.0,” the brand’s next-generation design vision. “They have that large network, and can bring fully vetted professionals so we know we are hiring someone great,” he said.<h3>A Partnership Built on Trust and Momentum</h3>Eighteen months in, French describes the partnership as both affirming and transformative. The company is growing faster, operating with greater precision, and planning for a stronger future — all while maintaining alignment with a partner that shares their values.“It has played out very true and very significantly,” he said. “We’re working really hard on continuing to build the foundation to support that growth.”For more information about CapitalSpring, please visit&nbsp;<a href="http://www.capitalspring.com">www.capitalspring.com</a>.&nbsp;The statements above represent the opinions of founders and senior executives of portfolio companies in which private funds advised by CapitalSpring have invested. These individuals are not clients of CapitalSpring and have not received any compensation for their endorsement. Because their companies benefit from a relationship with CapitalSpring, including investments by CapitalSpring and private funds that we advise, conflicts of interest may exist. Past performance is not indicative of future results. These endorsements should not be interpreted as investment advice or recommendations.

How CapitalSpring Helped The Works Bakery Café Build a Stronger Future

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Not all investment partners are created equal. Many firms provide funding, but the most valuable partners offer more than money. They understand franchising’s unique challenges and can help create long-term growth.“Capital has become a commodity overall and if you're looking to grow your business, regardless of what the nature of the business is, there is the inevitability of a lot of obstacles and decisions to make along the way,” said&nbsp;<a href="https://www.linkedin.com/in/erik-herrmann-205aa624/">Erik Herrmann</a>, partner with&nbsp;<a href="https://www.capitalspring.com/">CapitalSpring</a> and head of the investment group. “So it's about what other capabilities can be brought to the table to get the job done.”A strong partner sees the bigger vision, helps accelerate growth and brings resources that make the brand stronger without compromising its foundation.<h2>What To Look For in a Franchise Investment Partner</h2>Savvy franchisors should evaluate an investor’s ability to add value beyond the check. Important questions include:<ul><li>Do they understand unit-level economics and franchisee relationships?</li><li>Can they provide operational, technology or real estate support?</li><li>Do they have capabilities to enhance your franchise sales organization?</li><li>What experience do they have with franchisors at your stage of growth?</li></ul>“Any partnership is only as good as having a shared vision for what the end goal is," Herrmann said.&nbsp;A partner’s involvement after the deal is also critical. The right investor should share your values, help set appropriate goals and avoid creating friction through misaligned priorities.<h2>Franchising Experience Is Non-Negotiable</h2>Franchising is not like other business models. It requires a balance between the franchisor, franchisee and customer. Herrmann explains that strong franchise investors have already faced challenges in the industry and bring useful insights to the table.“It's what you're selling. You're not selling sandwiches or pizza or chicken. You're selling a business model," he said. "So that's going to manifest in the unit economics because it's all about attracting new prospective franchises to your brand versus others and getting existing franchises to open new locations.”A partner with experience knows how to evaluate system design, pace growth and track performance with the right metrics. This helps franchisors avoid common mistakes and build sustainable systems.<h2>Strategic Support That Drives Results</h2>The right partner provides more than funding. They can deliver access to prospective franchisees, cost synergies and data analytics tools. They may also support site selection, sales organization design and operational improvements.Herrmann points out that investors can also help refine the product itself. That might include lowering development costs, improving workflows or expanding the menu to increase sales. All of these improvements make the franchise offering more attractive to potential franchisees.<h2>Avoid the Wrong Fit: Red Flags To Watch Out For</h2>Not every investor is the right match. Franchisors should watch out for firms that push one-size-fits-all growth expectations, lack transparency after the deal or have little to no franchise industry experience.“I think where partnerships break down is when you have one partner with one objective and you have a partner that's been brought in that has a slightly different perspective on where the business should go or how it should grow or in what manner,” Herrmann said.Investors focused only on aggressive growth rather than sustainable system health are also unlikely to be the right long-term partners.<h2>The CapitalSpring Difference</h2><a href="https://1851franchise.com/capitalspring/info">CapitalSpring</a> positions itself as more than a financial backer. The firm works flexibly, tailoring its investments to the goals of the counterparty. Herrmann notes that flexibility is a major differentiator, as many firms only invest into a single type of deal structure.“Flexibility is a real place that we differentiate as compared to most,” Herrmann said. “We're happy to buy control or, in some cases, 100% of a business, but similarly we're happy owning 25% if that's the right deal dynamic that meets the founder’s or business owner’s objective.”With experience across dozens of franchise systems, CapitalSpring emphasizes operational support, purchasing power and growth resources that go far beyond writing a check.If you’re looking for an investment partner to help you grow your franchise — not just fund it — CapitalSpring can help. The firm brings deep experience in franchising and a commitment to sustainable, long-term growth.For more information about CapitalSpring, please visit&nbsp;<a href="http://www.capitalspring.com">www.capitalspring.com</a>.&nbsp;

What Makes a Successful Franchise Investment Partner: Understanding What To Look For  

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How CapitalSpring Is Powering the Next Era of Growth for Café Yumm!

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