Hedge Funds & Food

In today’s NY Times’ Business section, there’s a great piece about the Union Hospitality Group’s buying a stake in the fast food chain, Tender Greens: http://www.nytimes.com/2015/07/15/business/dealbook/union-square-hospitality-buying-stake-in-tender-greens-chain.html?ref=business&_r=0.

Danny Meyer is the CEO of Union Hospitality.

Long lines, food that tastes the same with each bite, lots of salt and animal fat, voila!  A business plan.

The article also notes, far more interestingly, that Union Hospitality is an asset of this hedge fund: Leonard Green and Associates.  It notes:

“In 2012, Mr. Meyer was on the receiving end of a private equity investment when Leonard Green & Partners acquired a roughly 40 percent stake in Union Square Hospitality.  That investment from Leonard Green helped fuel the growth of Shake Shack.”

What else does the hedge fund Leonard Green have significant investments in?    Here’s a partial list: BJ’s Wholesale Club, Del Taco, J. Crew, Palms Casino Resort, and Petco.

Do fries go with that shake?

I’m not saying that one shouldn’t enjoy burgers and fries at Shake Shack.  Go right ahead.  But bear in mind: If you are interested in income inequality, each bite adds $$$ to private equity.

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