Dive Brief:
- A bankruptcy court approved the sale of more than 30 former Salad and Go units and the brand’s intellectual property to a variety of chains this week for nearly $16 million, according to a hearing held on Wednesday.
- Swig, 7 Brew, Dutch Bros and Just Salad were among the successful bidders during the non-bulk auction, according to a court document. Last month, the court approved 7 Brew’s $123 million bid for over 60 Salad and Go restaurants, the bulk of the bankrupt chain’s former store system.
- Hospitality First Concepts co-founders Mike Myers and Tom Misitano, along with Daniel Patino, one of the original co-founders and chef of Salad and Go, bought the intellectual property, including trademarks and logos.
Dive Insight:
While Salad and Go closed its stores when it filed for bankruptcy and has transferred nearly 100 units to new ownership, this sale doesn’t spell the end of the salad chain.
Hospitality First Concepts plans to reopen several Arizona locations “as quickly as possible,” Myers said in a social media post, adding that the new owners expect to grow the chain.
“When I saw the opportunity to rebuild Salad and Go, I couldn’t pass it up,” Myers said. “Tom has been my longtime partner and was an original investor in Salad and Go. And Daniel’s passion for what he does is infectious. Bringing the three of us together to rebuild this brand just made sense.”
The new owners will start by reopening locations in Arizona, which will be company-owned; the group plans to eventually offer franchising opportunities across the country.
Salad and Go declared Chapter 11 bankruptcy in early August after facing financial pressure from waning consumer demand, challenges from previous growth strategies and rising costs. Last year, the chain hired CEO Michael Tattersfield, former Krispy Kreme CEO, to try and turnaround the brand. Under Tattersfield, the chain closed underperforming stores, reduced its corporate headcount, renegotiated vendor contracts and closed an expensive central kitchen in Texas.
Despite Salad and Go’s previous challenges, some salad-focused chains are still growing, indicating investor interest in the segment. Crisp & Green, a health-focused fast casual chain, acquired 33 units from the Salad Collective, with plans to convert the Mad Greens and Snappy Salad locations to its own brand, according to an emailed press release. With this acquisition, Crisp & Green will hit 100 units. Souplantation and Sweet Tomatoes have been slowly opening locations since 2024, four years after its previous owner filed for Chapter 7 liquidation.
