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Update August 15, 2014- Reuters reports that the private equity firm Leonard and Greene and Partners LP purchased the 40% stake in USHG, not Goldman Sachs as were guessed.
July 6, 2014- By Steven E. Greer
As if it weren’t obvious, Danny Meyer has officially sold out, leaving the fine-dining business to focus on expanding Shake Shack. In a WSJ article, “Late last year (Danny Meyer) plucked a rising star, 38-year-old Sabato Sagaria—former food and beverage director at the Little Nell Hotel in Aspen, Colo.—to be his first-ever lieutenant. While Mr. Meyer focuses on his rapidly expanding Shake Shack burger chain (which just opened its 48th outpost), his new chief restaurant officer will run his 10 full-service venues, focusing, he said, on “continuing to grow talent from within.”.
BatteryPark.TV previously reported how Mr. Meyer sold 40% of his empire to Goldman Sachs, which is now focused on growing the company through the more scalable fast food Shake Shack. He also made news last week for closing his flagship Union Square Cafe.
Will America like Shake Shack fries and burgers or was the popularity of Shake Shack all about the scarcity and long lines? If Shake Shack can only expand to 200 stores, and Blue Smoke expand as well, then the valuation of the company would approach $3 Billion.
