Fast-Growth Brands Like 7 Brew Are Fueling PE Activity — But They Need Leaders Who Can Scale
Private equity is surging back into the restaurant franchise space. With interest rates easing and strong concepts driving attractive unit economics, brands like 7 Brew, Bojangles, Chicken Salad Chick, Wingstop, Taco Bell, and Qdoba are drawing rapid acquisition activity. Capital is ready, deal flow is rising, and franchise portfolios are expanding at unprecedented speed.
But one truth is becoming impossible to ignore:
PE-backed restaurant groups aren’t struggling to find capital—they’re struggling to find leaders who can turn capital into scalable growth.
The Executive Roles PE-Backed Restaurant Companies Need Most
Rapid expansion, new market entry, and multi-unit integration place new demands on leadership teams—demands that many founder-led or family-operated groups were never structured to handle.
Across Wray Executive Search’s work in restaurant and hospitality, the roles most essential for PE-backed scaling include:
1. Chief Operating Officer (COO)
The orchestrator of multi-unit execution. A PE-ready COO must bring expertise in:
Operational infrastructure and discipline
Multi-state labor models
Field leadership development
Margin management at scale
Integration of acquired units
This role often becomes the difference between sustained growth and stalled development.
2. Chief Financial Officer (CFO)
Not a controller elevated into the seat—but a true strategic finance leader who can manage:
Complex capital structures
Investor reporting and transparency
Cash flow optimization
Leverage strategies
Data-driven forecasting
Unit-level performance analytics
PE firms expect rigor. The wrong CFO introduces risk instantly.
3. Chief Development Officer (CDO)
For brands signing aggressive development agreements, a CDO must excel at:
Real estate strategy and site modeling
Speed-to-market
New restaurant openings
Vendor negotiations
Multi-state permitting and compliance
This role is often underestimated—but underdevelopment is one of the fastest ways growth falters.
4. Chief People Officer (CPO) / VP of HR
Scaling from a few dozen units to 100+ requires:
Leadership pipeline development
Culture preservation during growth
Compensation restructuring
Recruiting infrastructure
Engagement and retention strategies
People decisions become profit decisions in a PE-backed environment.
5. Vice President of Operations / Regional Directors
Mid-level leadership becomes the backbone of consistency. These leaders ensure:
Standards are upheld across markets
New units perform quickly
Turnover stays in check
Field training is aligned with growth
PE firms pay close attention to the strength—and depth—of this layer.
What Skills Do Executives Need to Succeed in a PE-Backed Environment?
Even the most impressive restaurant operator may not succeed under private equity pressures. The shift in expectations is profound.
PE-backed leaders must bring:
1. Multi-Unit Scaling Experience
Not theoretical knowledge—actual experience growing from 50 → 150 → 300 units while maintaining profitability.
2. Financial Acumen at an Institutional Level
Leaders must understand:
Debt structures
Capital allocation
Reporting cadence
Value creation levers
Board communication
A PE environment demands sophistication, accuracy, and speed.
3. Data-Driven Decision-Making
Gut instinct isn’t enough. High-performing executives must be fluent in:
KPI dashboards
Predictive analytics
Labor optimization platforms
Margin modeling
Real-time reporting systems
PE firms expect leaders who operate from truth—not assumptions.
4. Change Leadership & Integration Expertise
Whether integrating acquisitions or opening 50 units in new markets, leaders must:
Align teams around new expectations
Establish clarity amid transformation
Build systems where none exist
Manage cultural transitions
Stabilize performance quickly
Scaling is not linear—leaders must thrive in complexity.
5. The Ability to Work With Investors
Successful PE-backed leaders understand:
How to communicate concisely and transparently
How to manage expectations
How to defend strategy with data
How to operate with accountability
Many operators underestimate this skill set—until they’re in the role.
The Risks of Scaling Without the Right Leadership
Private equity can enable explosive growth—but it also magnifies the consequences of leadership gaps. The risks are real, and they appear quickly:
1. Missed Development Timelines
Without an experienced development or operations leader, brands fall behind on buildouts—eroding investor confidence and delaying revenue.
2. Declining Performance in New Markets
Lack of multi-unit expertise leads to inconsistent execution, soft openings, slow ramp-up, and poor guest experience.
3. Ballooning Labor Costs & Turnover
An absent or underpowered HR leader leads to unscalable labor models, high turnover, and culture dilution.
4. Weak Financial Controls
Inexperienced finance leaders create risk around:
Cash management
Reporting accuracy
Forecasting
Investor relations
Small missteps quickly become major liabilities.
5. Brand Damage During Expansion
Rapid growth without disciplined leadership often introduces:
Inconsistent service
Operational shortcuts
Franchisee misalignment
Increased guest complaints
Growth without readiness undermines value.
6. Lower Exit Valuation
When teams lack PE-ready leadership:
EBITDA declines
Unit economics weaken
Expansion slows
Investors devalue the asset
Leadership maturity is now a measurable indicator of enterprise value.
Private Equity Is Fueling the Momentum — But Leadership Determines the Outcome
Fast-growth brands have the spotlight. Capital is flowing. Deal activity is accelerating.
But private equity has learned a consistent lesson across hundreds of restaurant investments:
Growth is not a real strategy without leaders who can execute it.
Wray Executive Search partners with PE firms, franchise operators, and high-growth restaurant brands to build leadership teams capable of scaling with speed, discipline, and vision. Get in touch today to discuss our teams specialized approach to executive search.
