What Went Wrong at Honeygrow?
Skift Take
It's a familiar story of bad real estate decisions and branding mistakes fueled by millions of private equity dollars that didn't leave much room for Honeygrow to slow down and expand in a measured, deliberate way.
Honeygrow, a fast casual stir fry and salad chain based out of Philadelphia, announced last week that it would be exiting the Chicago market, closing down several locations in New York and D.C., and pulling back on all expansion efforts in 2019.
It's a significant sign of trouble for the chain, which has been on an ambitious growth track since its inception in 2012. Founder and CEO Justin Rosenburg has long believed in the potential of Honeygrow as a real Sweetgreen or Cava competitor, and with the way that funding was poured into the company, he wasn't the only one who was sold on that goal.
Honeygrow has raised a total of $70 million in funding over the course of its lifespan, the vast majority of which came in rounds secured in quick succession over the past couple of years: $25 million in June 2015, $20 million in November 2016, and another $18 million in December 2017.
Each of the large rounds were led by Miller Investment Management, a Philadelphia-based investment firm with a
