New York City-based gourmet cookie chain Chip City Cookies has announced it has closed a $7.5 million Series B investment from Enlightened Hospitality Investments, which brings the total amount raised from EHI to $17.5 million. The financing enables continued investment in growing Chip City’s brick and mortar locations throughout the United States, as well as in people, services and creative collaborations to further strengthen its brand position within the competitive cookie segment.
“This Series B fundraise helps Chip City sustain and further our strong commitment to developing exceptional cookies, providing enjoyable experiences for our guests and team members, and to continuously invest in the next stage of our transformative journey,” says Peter Phillips, chief executive officer and co-founder of Chip City. “We're excited about our growth trajectory and this investment from EHI propels us into a new era of growth and innovation.”
Enlightened Hospitality Investments is a pioneering investment firm that fuels growth in people-first organizations that prioritize hospitality.
“It's been thrilling to watch Chip City’s momentum take hold in markets across the country,” says EHI co-founder and managing partner Danny Meyer. “The Series B capital not only validates the quality of the product – which is delicious! - but also illustrates the team’s ability to accelerate retail growth, execute creatively, retain customers and, ultimately, secure a prime position in the cookie space.”
In 2017, Peter Phillips and Teddy Gailas challenged each other to see who could create the absolute best cookie they had ever tasted. The resulting cookies were so good that the duo decided to bring them to the masses and open a cookie shop in Astoria, Queens. Today, Chip City has 38 locations across New York, New Jersey, Connecticut, Florida, Illinois, Maryland, Massachusetts and Virginia, with plans to enter into new markets, including Pennsylvania, before the end of the year.
“Since our inception, we have built a remarkable base of loyal customers, and since partnering with EHI, we have had the opportunity to meet our customers’ growing needs while advancing our digital initiatives through the Chip City app and social media,” says Teddy Gailas, chief brand officer and co-founder of Chip City. “Through these channels, we have actively listened to our customers’ preferences, not only for our rotating menu but also for introducing new specialty flavors. To date, we have successfully launched imaginative desserts such as Chocolate Cupcake Cookie, Frootie Crunch, and, most recently, our Thin Chips and Chip Crookie. With this new investment, we aim to further enhance our creativity by offering more oversized gooey cookies and innovative flavors.”