26 February 2025, Fast-casual restaurant chain Just Salad has raised $200 million in funding from a group headed by Wellington Management, with participation from D1 Capital Partners, Neuberger Berman, and Stripes.
The funding, which values the chain at around $1 billion, will be utilized to fund new unit expansion, create new menu items, and invest in technology and customer experience enhancements.
Established in New York City in 2006, Just Salad has close to 100 outlets in various US states, such as New York, Florida, Illinois and Massachusetts. Just Salad, which provides salads, wraps, warm bowls, soups, and smoothies, has emerged as a health-conscious alternative in the quick-service food market.
As per the company, Just Salad is a Certified B Corporation and runs a reusable bowl scheme, which it says saves single-use packaging waste by about 43,000 pounds per year. The company has also collaborated with food waste-saving platform Too Good to Go, stating that it has saved over 160,000 meals from going to waste and prevented more than 430,000kg CO2e since 2021.
Nick Kenner, CEO and founder of Just Salad, commented: "The quick-service food sector is still in the early stages of disruption, and the average consumer longingly yearns for healthy, crave-able, convenient, and affordable options. We're excited to have world-class investors such as Wellington, D1, Neuberger Berman, and Stripes join us to help fuel our next stage of growth."
"We have an enormous runway to develop Just Salad into a national restaurant brand of distinction, and this investment shows the faith in that potential and our ability as a team to make it a reality."
Michael Carmen, Wellington Management's co-head of private investments, said: "We're looking forward to investing in Nick and the Just Salad team. Just Salad provides consumers with a terrific product at an appealing price and differentiates itself from other restaurant chains with its powerful brand and strong same-store sales growth. This growth is surpassing others in the fast-casual segment and is being fueled by higher consumer traffic over the last year."
As per Coherent Market Insights the fresh food packaging industry is anticipated to grow at 4.1% CAGR in the period of forecast of 2024 to 2031 as increased awareness regarding fruit and vegetable benefits, more households are following high fruit and vegetable diets on a daily basis. It is valued at USD 93.71 Bn in 2024 and is forecasted to touch USD 124.15 in 2031.
The sector is on the brink of expanding immensely in the near future fueled by increasing health awareness among consumers as well as increasing disposable income. This will drive the demand for innovative package solutions that can aid in extending the shelf life of fast-decaying products and preserve food quality according to research consultant Shivam Bhutani.
Just Salad's $200M funding will drive its growth, extending its presence and expanding operations. The action marks a trend among fresh food players to expand access and innovation. The fresh food packaging market is also changing, with more companies placing emphasis on sustainability and eco-friendly packaging options to address heightened consumer demand for green packaging.
