Advent International announces majority investment in daytime café operator First Watch Restaurants

  • Advent to support First Watch’s growth through continued restaurant expansion, increased awareness and operational initiatives

BOSTON, MA; UNIVERSITY PARK, FL; NEW YORK, NY, July 27, 2017 – Advent International, one of the largest and most experienced global private equity investors, today announced that it has agreed to make a majority investment in First Watch Restaurants Inc. (“First Watch”), the prominent breakfast, brunch and lunch concept. First Watch’s existing management team will continue to lead the company and will retain a meaningful equity stake in the business. The transaction is expected to close in the coming weeks. Financial terms were not disclosed. First Watch is a portfolio company of Freeman Spogli & Co.

Headquartered in University Park, Florida, and founded in 1983, First Watch operates full-service daytime cafés under the First Watch and The Egg & I brands. The restaurants serve breakfast, brunch and lunch from 7 a.m. to 2:30 p.m., seven days a week. The company provides customers a unique farm-to-table experience through a variety of healthy, traditional and indulgent offerings, with a focus on fresh ingredients and outstanding service. First Watch currently has more than 300 locations across 26 states, predominantly in Florida, Texas, Ohio, Colorado and Arizona.

“First Watch is a fresh and modern restaurant concept, serving craveable food with exceptional customer service,” said Tricia Patrick, Managing Director at Advent. “We are excited to partner with Ken Pendery, Chris Tomasso and the talented management team at First Watch, and to lend our expertise to support continued restaurant expansion, digital investment and innovation in the breakfast category. First Watch is strongly aligned with trends toward healthier eating and better ingredients, and positioned to not only grow within existing markets but also to expand the unique concept to guests in new geographies.”

“This is an exciting time for us at First Watch, and we are very pleased to be working with Advent as we enter our next phase of growth,” said Kenneth L. Pendery Jr., Chief Executive Officer of First Watch. “With Advent’s support, we look forward to deepening our connection with consumers, building on our core business of serving healthy, high-quality breakfast, brunch and lunch, and continuing our thoughtful approach to driving significant value. We sincerely thank the team at Freeman Spogli for their trust, support and partnership in helping us to significantly expand our brand and solidify our position as the premier daytime-only restaurant concept in the United States.”

In recent years, First Watch has executed an aggressive growth plan, nearly tripling its total number of restaurants through organic company-owned restaurant growth, franchising and acquisitions. This plan has led to growth in revenue and EBITDA. For First Watch, 2016 marked 33 years of positive same-store sales growth, as the company finished the year up 7 percent supported by positive traffic. The brand’s strong performance can be attributed to maintaining a focus on delivering a superior, differentiated customer experience and culinary offering at an exceptional value that continues to resonate with a broad consumer demographic.

“We are pleased with First Watch’s performance during our partnership,” said John Roth, Chief Executive Officer at Freeman Spogli. “During our time together, the company has delivered industry-leading results, including 26 straight quarters of positive same-store sales, while increasing average unit volumes by 22 percent and nearly tripling EBITDA. We have enjoyed working with Ken and the First Watch team, and look forward to watching the business continue to succeed with Advent’s support and expertise.”

Advent International has significant investment experience in the retail, consumer and leisure industry. Over the past 27 years, the firm has invested more than $9 billion in 71 companies in the sector worldwide. In addition to First Watch, recent North American investments include Sovos Brands, whose businesses include Michael Angelo’s Gourmet Foods and Rao’s Specialty Foods; Noosa Yoghurt, lululemon athletica (NASDAQ: LULU), The Coffee Bean & Tea Leaf, Serta Simmons Bedding, Party City (NYSE: PRTY), Bojangles’ (NASDAQ: BOJA) and Five Below (NASDAQ: FIVE).

Jefferies and North Point Advisors are acting as financial advisors, and Morgan, Lewis & Bockius is acting as legal advisor to First Watch and Freeman Spogli in connection with the transaction. Weil, Gotshal & Manges is serving as legal advisor to Advent International.


Founded in 1983 in Pacific Grove, CA, First Watch specializes in award-winning, made-to-order Breakfast, Brunch and Lunch. A recipient of more than 200 “Best Breakfast” and “Best Brunch” accolades, First Watch offers traditional favorites, such as omelettes, pancakes, sandwiches and salads, and unique specialty items like Quinoa Power Bowls, Avocado Toast and the Chickichanga. First Watch was named the 2016 top Family Dining restaurant by Consumer Reports, a 2015 Top Consumer Pick by Nation’s Restaurant News and a 2014 Top Franchise Value by FSR Magazine. First Watch is the largest and fastest-growing daytime-only restaurant concept in the United States with more than 300 restaurants in 26 states, including more than 200 First Watch restaurants, 90 The Egg & I restaurants and one Bread & Company restaurant in Nashville.

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Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 325 private equity transactions in 40 countries and as of March 31, 2017, had $39 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of 190 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.

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Freeman Spogli & Co. is a private equity firm dedicated exclusively to investing in and partnering with management in consumer-related and distribution companies in the United States. Since its founding in 1983, Freeman Spogli has invested over $3.8 billion in 56 portfolio companies with an aggregate transaction value of approximately $22 billion, and is currently making investments from FS Equity Partners VII, L.P. Freeman Spogli has offices in Los Angeles and New York.

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Media contacts

First Watch Restaurants, Inc.
Eleni Kouvatsos
Public Relations & Communications Manager
Tel: (941) 907-9800 ext. 218

Advent International
Dana Gorman or Emily Ward
Abernathy MacGregor
Tel: (212) 371-5999

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