Cracker Barrel Invests in Punch Bowl Social

Equity firm L Catterton sold its stake in Punch Bowl Social, an "eatertainment" restaurant concept, to Cracker Barrel Old Country Store. Terms of the transaction were not disclosed.

Founded in 2012, Punch Bowl Social is an award-winning experiential food and beverage concept that combines made-from-scratch food and craft beverage program with social gaming. Punch Bowl Social has 17 locations across 12 states and plans to open 11 additional units by the end of calendar year 2020. It is led by founder and CEO Robert Thompson, an entrepreneur with over 20 years of  experience owning and operating large-format experiential food and beverage concepts.

Thompson and a seasoned management team will continue to oversee day-to-day operations.

The investment in Punch Bowl Social allows Cracker Barrel to enter a new and expanding experiential food and beverage segment, providing another growth vehicle to deliver shareholder value. Additionally, the strategic relationship provides Punch Bowl Social with additional resources to drive continued growth.  

Cracker Barrel is taking a non-controlling position in the concept and will invest up to approximately $140 million to acquire its initial non-controlling stake and to provide growth capital for future development. The agreement includes provisions for the company to potentially acquire a controlling or full ownership position in Punch Bowl Social in the future.

"Our investment in Punch Bowl Social …gives us an opportunity to enter a new category with exposure to new guests and demographics while also leveraging our strengths and the similarities between the two companies … We love what Punch Bowl Social has built and are excited about helping them continue to grow," said Sandy Cochran, CEO of Cracker Barrel.

Punch Bowl Social founder and CEO Robert Thompson said, "… Our continued goal is to be an experiential millennial and Gen Z lifestyle brand that creates authentic, social guest experiences. Having Cracker Barrel provide growth capital and strategic resources sets us up for the next exciting chapter."