Burgerville on Friday announced the popular hamburger chain has partnered with a group of local investors, including former Dutch Bros CEO Joth Ricci, ahead of a regional expansion.
The Vancouver-based chain, known for local ingredients, seasonal food and milkshakes, and sustainable practices, has 39 restaurants in Oregon and Washington. The deal is expected to spur new locations across the region and possibly into Idaho.
In interviews and a press release, the company declined to share specifics about the new ownership group, aside from noting it’s composed of mostly local investors, among them the Mears family, which currently owns the chain; Burgerville CEO Ed Casey, who will remain as chief executive; and Ricci, who will become executive chairman.
On Monday, Willamette Week reported that a deal had been in the works to sell the chain to a group led by Sortis Capital. A spokesperson for Sortis Managing Partner Paul Brenneke said he’s an investor in the deal announced Friday, but not through a Sortis entity, and he doesn’t have a controlling stake. Sortis Holdings absorbed a number of restaurants during the pandemic, some of which have struggled to turn things around in its wake.
Casey, who was named Burgerville CEO in 2022, will remain in the role. The current management team also is expected to remain.
“No single person or entity has a big, controlling interest,” Casey said of the new ownership group.
Ricci, who served as CEO of fast-growing coffee chain Dutch Bros from 2019 to 2023, described Burgerville as a “sleeping giant.” Ricci’s time at Dutch Bros included taking the company public in 2021.
Burgerville hasn’t been growing of late. In January, it announced a new location in Wilsonville, its first new restaurant in eight years. Like many restaurant chains, Burgerville struggled during the pandemic, including with its supply chain and staffing.
Casey said he’s worked to address those operational challenges and the deal signals the start of a two- to three-year growth plan.
In a press release, the company said sales increased the past two years and are on track to grow again this year.
Burgerville’s locations stretch up Interstate 5 between Albany and Centralia, Washington. Casey wants to expand that from Medford up to Seattle, including adding more stores in the existing footprint. Burgerville also could expand east into Idaho.
“We get constant requests to come to Bend, to come to Salem, to come to Eugene,” Casey said.
Casey thinks Burgerville could start adding 10 new stores a year and have 100 within five years. He doesn’t foresee closing any existing locations.
Some of the new locations could be existing locations of other hamburger restaurants. For instance, the new Wilsonville location is in a former Burger King.
“Some municipalities don’t allow any new drive-thrus,” Casey said. “Your only options are acquiring and conversion.”
Ricci said some former Sonic locations also could be become Burgerville locations.
Casey and Ricci said the core Burgerville experience, including local sourcing, won’t change. But operations could be improved, such as speeding up drive-thru lines, which Ricci worked on at Dutch Bros.
As executive chairman, Ricci will play a pivotal role in strategic decisions including sourcing and geographic expansion.
“This is about building a concept that’s worked really well and upgrading it,” he said.
Burgerville was founded in 1961 by George Propstra, who died in 2004. His son-in-law Tom Mears was tapped to run the business in 1982 and it’s remained in the Mears family through Holland Inc.
In addition to retaining an ownership stake, the Mears family will continue to own the land under about half of the existing Burgerville locations, Casey said. The others are owned by various landlords.
Willamette Week reported the previous deal for Burgerville had set the purchase price at $48 million. Ricci and Casey declined to share details about the terms of the investment announced Friday.
The deal is expected to close Monday.
Burgerville employs about 1,200.
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