NEW YORK — Gourmet startup Chip City Cookies has received a $10 million investment from Enlightened Hospitality Investments (EHI), a growth equity fund associated with Union Square Hospitality Group (USHG).
Chip City has 14 locations across the greater New York City area with plans to expand into New Jersey and Florida markets. Started in Astoria, Queens, in 2017 by co-founders Teddy Gailas and Peter Phillips, Chip City sells a different rotation of large, fresh-baked cookies each week.
“This investment and partnership gives us the tools to accelerate our growth strategy,” Mr. Gailas said. “It wasn’t just the money that was attractive about this deal, it was the association and mentorship from leaders who have done this before.”
EHI provides guidance in the hospitality and consumer retail channels, working in partnership with the USHG team, which founded Shake Shack in 2004.
“At EHI, we are always looking for businesses that have created craveable products and have earned a tribe-like following,” said Danny Meyer, co-founder and managing partner of EHI. “Chip City checks both of those boxes in a significant way. Beyond the cookies, which speak for themselves, we are excited to support the growth aspirations of the passionate team behind Chip City, who exemplify our values of hospitality and community.”
The cookies are available direct-to-consumer both at the company’s storefronts and nationwide via a ship-anywhere partnership with Uber Eats.“This is another incredible validator for the brand and the business mission we have — to make communities smile through the quality of our products and to make our employees feel purpose in their communities,” Mr. Phillips said.