The NPCA Update (3): How Hospitality Brands Are Winning in the CPG Aisle
- NP Capital Advisors Team
- Jul 1
- 5 min read
Newsletter Summary: Hospitality and retail are converging, though this is not without its challenges. NP Capital Advisors can help firms raise capital, structure partnerships, and think through operational complexity from day one. Contact Founding Partner & CEO, Nick Desai (nick@npcapitaladvisors.com), for more information on how we can support.
The NP Capital difference combines consulting with transactional advisory to elevate outcomes. We unite real-world business-building experience, deep sector knowledge, and transactional acumen to deliver superior results.
From Restaurants to Retail: How Hospitality Brands Are Winning in the CPG Aisle
Hospitality and retail are converging in compelling new ways. One of the most notable trends is that restaurants with strong brand equity are increasingly launching CPG (consumer packaged goods) lines, while retail-first brands experiment with brick-and-mortar hospitality concepts.
For investors and operators alike, these brand extensions can unlock meaningful growth if executed with operational discipline and strategic foresight.
“For restaurant groups with high-demand menu items and loyal followings, expanding into retail can be a real margin and supply chain play,” says Sean K. Brennan, Managing Director of Hospitality and Restaurant at NP Capital Advisors. “You’re leveraging R&D you’ve already done, brand equity you’ve already built, and customer demand that’s already there.”
Case Study: Chick-fil-A’s Bottled Sauce Play
In 2020, Chick-fil-A began selling its signature sauces, like the cult-favorite Chick-fil-A Sauce and Polynesian, in grocery stores. What seemed like a simple product launch was, in fact, a sophisticated retail strategy.
“Chick-fil-A did everything right,” Brennan notes. “The demand was already there. By bottling it, they met a clear consumer desire while reinforcing their emotional brand connection.”
The brand also executed a thoughtful retail rollout through stores like Publix and Walmart, with clean branding and a portion of proceeds going to its scholarship fund, deepening customer goodwill.
Case Study: California Pizza Kitchen’s Frozen Reinvention
California Pizza Kitchen (CPK) similarly expanded into retail with a line of premium frozen pizzas, turning its restaurant menu into a household staple.
CPK’s success stemmed from its ability to translate upscale-casual dining into a product category with room for premium positioning. By partnering with Nestlé and other top-tier manufacturers, the brand ensured product quality that reflected its in-restaurant experience.
“CPK didn’t try to reinvent the wheel – they leaned into what already worked,” says Brennan. “Their frozen line kept them relevant even in cities without restaurant locations.”
It’s Not Always a Straight Line
While the upside is clear, entering the CPG space isn’t frictionless. Producing for retail requires new capabilities: FDA/USDA compliance, packaging and labeling design, shelf-life testing, and a completely different go-to-market strategy.
“There’s often an assumption that if you can run a restaurant, you can run a CPG line. But the realities are different,” Brennan cautions. “It requires upfront investment, new manufacturing partnerships, distribution relationships, and functional management and leadership you may not already have.”
Where NP Capital Comes In
NP Capital Advisors supports brands navigating both directions – restaurant-to-retail and retail-to-experiential. The firm helps clients raise capital, structure partnerships, and think through operational complexity from day one.
“Hospitality and retail are no longer siloed sectors,” Brennan concludes. “They’re different faces of the same brand. When done right, they reinforce each other. And we help make that happen.”
Industry Headlines
Ryan Trahan-Backed Joyride Raises $30M to Shake Up Sour Candy Scene
Creator-backed candy company Joyride (formerly Project 7) has raised a $30 million round.
The sour candy company relaunched in February 2024 with a new name and the backing of YouTube star Ryan Trahan as chief creative officer.
It now sells an 11SKU line of low-sugar gummy candies such as sour strips, ropes and wedges as well as a “crunchy and chewy” gummy busters format.
Startup Too Good To Go Weighs €300 Million Funding Round
Too Good To Go is considering raising €200 million to €300 million in a new funding round to support its business expansion.
The new round could propel Too Good To Go's valuation to more than $1 billion, making the startup a so-called unicorn.
Too Good To Go operates in 19 countries with around 100 million registered users, and last year launched a platform to help grocery retailers manage and sell their near-expired food.
DUDE Wipes Secures Strategic Growth Investment from TSG Consumer
DUDE Wipes announced a strategic growth investment from TSG Consumer Partners, a leading private equity firm focused exclusively on the consumer sector.
Founders Sean Riley, Chief Executive Officer, Jeff Klimkowski, Chief Financial Officer, and Ryan Meegan, Chief Marketing Officer, will retain significant ownership stakes and continue to lead the company in their current executive roles.
Long-time “Shark Tank” investor Mark Cuban is also continuing to bet on the DUDEs through this next phase of growth.
EU, US Confident They’ll Reach Tariff Deal by July Deadline
The European Union and the US believe they can reach a trade agreement before the July 9 deadline, when the US is set to impose a 50% tariff on nearly all EU products and the EU plans to impose its own countermeasures.
European Commission President Ursula von der Leyen is confident a deal can be reached, and US Commerce Secretary Howard Lutnick has also expressed optimism, citing the EU's increased pace of negotiations in recent weeks.
The EU is seeking a mutually beneficial deal, but is also preparing countermeasures in case talks fail, including tariffs on $21 billion and $95 billion of US goods, as well as other measures beyond tariffs.
Unilever to Acquire Men’s Personal Care Brand Dr. Squatch
Unilever today announced it has signed an agreement to acquire personal care brand Dr. Squatch from growth equity firm Summit Partners. This complementary acquisition marks another step in expanding Unilever’s portfolio towards premium and high-growth spaces.
Dr. Squatch has reached millions of people through its retail and direct-to-consumer model with natural, high-performance personal care products
The built-in-culture brand’s viral social-first marketing strategies, partnerships with influencers and celebrities, and culturally-relevant collaborations with limited-edition packs have helped to drive sales and grow a loyal consumer following on social media platforms and beyond.
Sauz Secures $12m Investment to Innovate the Tomato Sauce Market
Sauz, a rapidly growing brand known for its innovative approach to tomato sauce, has announced the successful closure of a $12 million funding round led by Cavu Consumer Partners.
This investment is poised to accelerate Sauz's expansion in the retail sector and enhance its product offerings, catering to a generation increasingly demanding unique culinary experiences.
The funding round also included participation from established investors such as Coefficient Capital, Palm Tree Crew, and Strand Equity.
Bespoken Spirits Announces Successful Close of Series-C Funding Round
Bespoken Spirits, a pioneering innovator in sustainable, precision-aged spirits, announced the successful close of its Series C funding round.
Backed by more than 100 individual investors, Bespoken Spirits has raised over $11 million, accelerating the company's efforts to expand its market presence, scale production capabilities, and further invest in its proprietary technology to bring new flavors and aromas to the world.
The firm’s mission is to disrupt and modernize the spirits industry while promoting sustainability, efficiency, and unmatched product quality innovation.
About NP Capital Advisors
NP Capital Advisors is a next-generation investment bank and consulting firm founded by a team of experienced entrepreneurs, bankers, and attorneys who have built, operated, and sold successful businesses. The firm offers tailored solutions across M&A, restructuring and turnarounds, and strategy and growth consulting in a variety of sectors. With a performance-driven fee structure and a track record of delivering exceptional results, NP Capital Advisors is dedicated to helping founder-led and emerging growth businesses maximize value and overcome challenges.
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