7 Brew Wins Bankruptcy Auction for Salad and Go Locations

7 Brew Wins Salad and Go Auction

7 Brew has won a bankruptcy court auction for 73 former Salad and Go locations in a deal valued at approximately $143.2 million. The rapidly expanding drive through coffee chain beat Dutch Bros, which had previously submitted a $105 million stalking horse bid for the properties.

Locations Across Four States

The winning bid includes 49 locations for approximately $124.8 million and another 24 locations for roughly $18.4 million. The properties are located across Arizona, Texas, Nevada and Oklahoma, giving 7 Brew an opportunity to significantly expand its footprint without having to develop each location from the ground up.

Arizona Gets the Biggest Share

Arizona represents the largest portion of the deal, with 41 of the 73 locations located in the state. The properties include locations in communities such as Phoenix, Mesa, Tempe, Gilbert and Scottsdale. Salad and Go was founded in Gilbert in 2013 and became known for its drive through salads, wraps, soups and smoothies.

Salad and Go’s Bankruptcy

The auction followed Salad and Go’s Chapter 11 bankruptcy filing in August. The company’s financial restructuring made dozens of existing drive through properties available to potential buyers, creating an opportunity for other restaurant chains to acquire established locations and infrastructure.

7 Brew Eyes Expansion

For 7 Brew, the locations could provide valuable real estate for future coffee shops. The company has expanded rapidly in recent years, building its brand around drive through locations and a broad menu of coffee, energy drinks, teas, smoothies and other beverages.

Dutch Bros Loses Out

Dutch Bros had initially positioned itself to acquire the properties through its $105 million stalking horse offer, but 7 Brew ultimately submitted the higher bid during the bankruptcy auction. The outcome means the locations that could have become Dutch Bros shops may instead be converted into 7 Brew locations.

Court Approval Still Needed

The transaction still requires approval from the bankruptcy court. A hearing is scheduled for Sept. 21, when the court is expected to consider the proposed sale. If approved, the acquisition would give 7 Brew dozens of additional locations in established drive through markets and could accelerate the company’s expansion across the Southwest. It also represents a major change in the future of properties that previously housed Salad and Go restaurants.