7 Brew has bid more than $143 million for 73 former Salad and Go locations, potentially expanding the drive-thru coffee chain’s growing national footprint.
The bid, submitted during a bulk auction last Monday, topped Dutch Bros’ previous agreement to purchase up to 65 locations for $105 million. Dutch Bros is now designated as a backup bidder.
Salad and Go filed for bankruptcy in early August and closed its remaining restaurants. The bankruptcy case began with about 140 locations in the company’s lease portfolio.
Under 7 Brew’s proposal, the company would pay roughly $125 million for 49 locations and more than $18 million for another 24 sites.
Salad and Go attorney Omar Alaniz said during last Tuesday’s bankruptcy hearing that the bid was “above robust” and would help cover payments to creditors.
The acquisition could accelerate 7 Brew’s expansion. The company opened its 777th drive-thru location in June and is on pace to surpass 1,000 locations this year.
Dutch Bros, which had nearly 1,200 locations at the end of the second quarter, said it would not increase its offer for Salad and Go properties in Arizona, Nevada, Oklahoma and Texas.
The proposed sale remains subject to the bankruptcy process, including landlord review and potential objections.