Dive Brief:
- 7 Brew bid over $143 million during a bulk auction on Monday for 73 former Salad and Go locations, according to a court filing. The salad chain declared bankruptcy in early August, closing all of its remaining locations.
- 7 Brew was designated as a lead bidder. Dutch Bros, which previously entered an agreement to buy up to 65 units for $120 million, has become a backup bidder.
- The auction occurred over a week after 7 Brew lawyers shared concerns over Dutch Bros entering into an exclusive agreement for the aforementioned sites, even though 7 Brew was in talks with Salad and Go for a higher amount.
Dive Insight:
Acquiring 73 locations would help speed up 7 Brew’s pace of openings. The chain opened its 777th drive-thru location in June and is on pace to surpass 1,000 units this year. 7 Brew is projected to open more than 400 franchised units this year, according to its franchise disclosure document. Adding another 73 locations would bring its unit count nearly even with Dutch Bros, which had nearly 1,200 units as of the end of Q2 2026.
7 Brew’s bid is split between two groups of Salad and Go restaurants. It agreed to pay roughly $125 million for 49 sites, or over $2.5 million per restaurant, and over $18 million for a further 24 sites, or $750,000 per restaurant. Dutch Bros’ bid resulted in about $2 million per restaurant, on the other hand.
7 Brew’s bid was “above robust” and will cover payments to the defunct salad chain’s creditors, Salad and Go lawyer Omar Alaniz, managing partner of Reed Smith, said during a Tuesday hearing. The bankruptcy case began with 140 locations in the debtor’s lease portfolio and the sale will take about half of those, he added.
Alaniz did note that the previous Dutch Bros bid already had time to go to landlords for review, and asked the court to provide an updated objection timeline to allow them to review and object to proposed leases under the 7 Brew bid, and an attorney representing a number of landlords indicated there would be objections.
“This is a great result,” Eric Chafetz, a partner with Lowenstein Sander, who represented the official committee of unsecured creditors, said of 7 Brew’s bid during the hearing. “The committee is extremely supportive and we do like where things are headed.”
Dutch Bros indicated on Monday that it would not increase its total offer for locations in Arizona, Nevada, Oklahoma and Texas, opening the possibility it might pull out of the deal.
“New shop growth is one of the most important drivers of our long-term strategy, and we remain highly confident in our path to 2,029 shops in 2029,” Christine Barone, CEO and president of Dutch Bros, said in a statement. “We’ve always been disciplined in how we allocate capital. While we have chosen not to increase our original offer, we remain engaged in the process and will continue to evaluate opportunities where the total investment provides the appropriate return.”
Dutch Bros said it would focus on its ongoing strategy to invest in its people, providing “exceptional” customer service and expand its presence across the country.
