Dan Beem
When looking for new investors, Hissho Sushi’s team had their fingers crossed that Brentwood Associates, a private equity firm, would agree to a partnership, CEO Dan Beem said.
The team favored Brentwood not only for its successful track record, but for its “core values, and their culture aligned exactly with ours,” Beem said. “I knew with them coming alongside that I didn’t have to worry about them wanting to change anything with regards to the incredible people that we have.”
The sale process began in late 2021 and in May 2022, Hissho had a new majority owner in Brentwood Associates. Global investor Continental Grain Co. participated in the transaction alongside Brentwood. Hissho’s existing management team remained as shareholders. The franchise was run independently prior to this transaction.
Headquartered in Charlotte, North Carolina, Hissho is a turnkey sushi franchise that has more than 2,000 franchised units across the country in high-traffic, non-traditional spaces, like airports, hospitals, grocery stores and elsewhere. The brand, founded in 1998, provides sushi bars to these locations, where it serves fresh-made sushi rolls.
Brentwood saw the value of investing in Hissho because of industry trends and Hissho’s unique franchise model, Brentwood Managing Director Jon Ang said.
“I think a lot more people are eating grocery store sushi today than a few years ago, because the quality and the customer perception around the categories really increased,” Ang said. “The product is just as good as the sushi you can get at a really high-quality, local sushi restaurant, and it tends to be much more affordable.”
Hissho Sushi has inventive options such as the Cheetos Flamin’ Hot Roll.
Brentwood has two decades of experience investing in restaurants, with the mission of “finding and partnering with companies that have a great brand and, in our minds, have a concept and experience that’s just really beloved by the end consumer,” Ang said.
Finding the right investors was a major decision for Beem, not just for financial purposes, but for sentimental reasons as well. When Hissho founder Philip Maung handed over the reins to Beem in 2017, “I promised him that I would protect the culture that he worked so hard to develop,” he said. “That’s been top of mind for me since day one.”
The dealmaking process went swimmingly, Beem said. “That’s why the two of us were able to shake hands at the end of the day,” he said. Brentwood did its due diligence and kept a “positive attitude though the long days.”
Above all else, he appreciated Brentwood’s commitment to doing exactly what they said they’d do. “Being a part of a couple of transactions, historically, that’s not always the case,” said Beem, who has held executive roles at Krispy Kreme and Cold Stone.
Along with Brentwood’s partnership comes its resources, Beem said, which “gives us expertise in areas that we didn’t have in house or access to previously,” he said. “That has accelerated the momentum of the company.”
The biggest lesson learned? Patience is key to ensure you’re making the right decision. “Take the extra time to make sure that you’re aligning with the right partner, because you’re basically married to them for the next four to six years,” Beem said.
Hissho has steadily added units the past few years, opening 406 in 2019, 108 in 2020 and 131 in 2021, according to the brand’s Item 20. Beem thinks this year will have a satisfying ending as well. “I think how we’re projecting to finish 2023, I think both sides are going to be incredibly happy,” he said.
Hissho Sushi sells its fresh-made sushi rolls in non-traditional locations such as grocery stores, which means its products are often consumed at home.