Dive Brief:
- Sycamore Partners, a private equity firm, acquired Playa Bowls from Tamarix Equity Partners and other investors, the company said in a press release Tuesday. Terms of the transaction were not disclosed.
- Playa Bowls has grown to over 250 units across 22 states since its inception in 2014.
- Dan Harmon, Playa Bowls CEO, said he expects that Sycamore’s support and resources, along with its expertise in managing multi-unit-franchise organizations, will help the chain accelerate growth.
Dive Insight:
During Tamarix’s ownership of the chain, which began in 2021, Playa added over 150 locations, Mark Hauser, managing partner of Tamarix Equity Partners, said in a statement. Tamarix’s strategy is to be an early investor in founder-owned businesses, which helped Playa Bowls build a national franchise platform, Hauser said.
Playa Bowls continues to grow its pipeline for future development. During the first quarter of the year, it signed 14 multi-unit franchise commitments for a total of 63 new shops. These locations would be in markets like New York City; Sarasota, Florida; Phoenix and Miami. It also signed nine single-unit franchise agreements during the quarter. The company opened 20 units during the first quarter and expects to open 75 locations and secure over 100 franchise commitments.
Last year, the chain opened 54 shops and signed 110 franchise commitments, of which 60% were signed by existing owners. The company reported 7.2% transaction growth and double-digit increase in comparable sales growth in 2023. Playa Bowls also enhanced its leadership team last year. It hired Harmon, formerly of Smoothie King, as CEO and Nicole DuBose, formerly of Focus Brands, as CMO.
Last year, Playa Bowls added Playa Pitaya and Playa Mango bases to its menu, alongside various LTOs throughout the year. It also pursued partnerships with leading brands like Chobani and Vital Proteins to enhance its menu. Its product enhancements continued into this year with the introduction of a mango menu in March and other seasonal LTOs.
“Playa Bowls has built a unique category leadership position with passionate customers, a loyal franchise base, and a great brand, which has allowed the company to scale rapidly in its first decade,” Stefan Kaluzny, managing director of Sycamore Partners, said in a statement. “We are confident Playa Bowls has continued runway for growth.”
