Retail & Restaurant Growth Capital

What is Retail & Restaurant Growth Capital?

Retail & Restaurant Growth Capital (RRGC) is an investment firm specialized in providing growth capital for businesses within the retail and restaurant sectors. Established in 1996 and headquartered in Dallas, Texas, RRGC holds the distinction of being the first Small Business Investment Company (SBIC) focused solely on these industries.

Over its two decades of operation, RRGC has developed a nuanced expertise in nurturing unit-driven retail, restaurant, and service businesses as well as supporting non-unit-driven models like e-commerce, catalog, and consumer services. The firm also partners with those who facilitate business processes across the retail and restaurant industry, including suppliers, food service companies, and providers of essential services such as internet access, logistics, outsourcing, and technology.

RRGC's investment approach is to inject capital—typically between $1 million and $3 million—into established companies with a proven track record of economics and growth. While the firm prefers larger capital raises in collaboration with investor partners, they are open to both minority and controlling positions, favoring investments that can aid in company growth, acquisitions, recapitalizations, and buy-outs. They strategically partner with leading private equity firms and lenders and are keen on investments that show clear evidence of a profitable concept, strong unit-level economics, high double-digit EBITDA returns, and customer growth with positive comparable store sales.

Critical to their investment thesis is the selection of companies with a solid market presence, trending sales above $10 million, and a positive EBITDA, preferably surpassing $1 million. RRGC not only offers financial capital but also positions itself as a strategic partner, providing expertise and advice.

They perform due diligence within 30 to 45 days and can close deals generally within 120 days. As they concentrate on retail and restaurant companies, RRGC will consider opportunities in related service and manufacturing sectors. The team is led by executives with extensive experience in the industry, including CEO Raymond C.

Hemmig and President Joseph L. Harberg.