Muscle Maker Grill

Muscle Maker, Inc. (the parent company of Muscle Maker Grill, Healthy Joe’s and MMG Burger Bar), operates and franchises restaurants across the US (including New York, Boston, Seattle, Florida, and Philadelphia). The group announced the launch of its online food delivery platform in November 2020, in collaboration with Happy Meal Prep (which specializes in meal prep order management software), to expand its customer reach. The company’s chain of Muscle Maker Grill restaurants commenced direct-to-consumer prepared meal delivery shortly after, starting in New York in January 2021, with further locations being added on over 1Q2020 -2Q2020. Muscle Maker Grill uses its restaurants as fulfillment centers for online meal plan orders to be shipped within a radius of up to 250 miles around each location. The company specialises in health-focused prepared meals, fruit smoothies and protein shakes, made with proprietary recipes, at prices ranging from USD 2.99 for sides to USD 13.99. The meals are lean and protein-based, with vegetarian, low-carb, and gluten-free options also being available.

The company has invested aggressively in inorganic growth in 2021, with the acquisition of Superfit Foods (USD 500,000; additional USD 25,000 in stocks) in March, followed by Pokemoto in May. The newly acquired companies both fit Muscle Maker Grill’s strategy of strengthening its presence in non-traditional markets. Pokemoto, for example, which caters to sushi enthusiasts, has several restaurant locations near universities, including Yale, Fairfield, and Franklin Pierce. Similarly, Superfit Foods, allows consumers to pick up fresh-pressed juices and fully prepared meals from coolers in 28 partner wellness centres and gyms (the company also offers conventional direct-to-customer shipping and home delivery). Superfit promotes brand awareness via partnerships with local gym owners, personal trainers and wellness centers. Muscle Maker Grill has disclosed that it is looking at further acquisition, aligned to its non-traditional growth model. It is also expanding the number of restaurant locations for its newly acquired subsidiaries, with Pokemoto adding three new franchises, to its existing count of 14 outlets, in Massachusetts to target Gen Z consumers in the college towns of Amherst, Northampton, and Hadley.

Muscle Maker Grill has struggled in recent years, with its own restaurant locations shrinking to 19 from 53 over the two year period ended Jan 2020, amid falling sales. The company’s acquisition of Pokemoto is expected to increase its total revenue by 81%, to USD 8.1 million. Superfit Foods has also recorded significant growth since its inception, with double digit revenue growth even during the pandemic.

In November 2021, the company entered into a definitive agreement with US institutional investors to raise ~USD 15 million via a private placement. The funding was expected to be deployed to expand the franchise sales team as well as increase spending on lead generation and attending trade shows. The company was expected to spend on product development and expand its market presence through strategic acquisitions. It also reported securing 45 new franchise deals within 30 days.