First-generation Korean-Americans brothers Lenny and Brian Chu started Lenwich (then Lenny’s) in 1989 as a classic New York deli, selling sandwiches, wraps, cold cuts, cheese and other convenience foods. Lenwich has grown into a well-known sandwich brand with 14 Manhattan stores.
The signature Lenwich features hot pastrami, corned beef, melted swiss, coleslaw and thousand island dressing. The Chus opened a Lenwich store in Korea three years ago. The investment from New York and Seoul-based private equity firm Pacific General will support Lenwich’s franchising and expansion beyond New York.
“We have a deep conviction in the franchise restaurant business model, and its ability to generate ownership opportunities for new entrepreneurs and economic benefits for working-class people,” said Damien Dwin of Lafayette Square, which provided debt capital to finance Pacific General’s stake (read and listen to “Lafayette Square’s Damien Dwin: Investing in working-class people and places”).
Pacific General’s Dajeong Lee says the firm and Lafayette Square share the same “passion for growing businesses that sustain the communities around them.”
Quality jobs
Washington, DC-based Lafayette Square, a private lender for middle-market businesses overlooked by commercial lenders, will help Pacific General and Greenwich improve worker retention and wellbeing via access to its Workers Solutions affiliate.
Worker Solutions helps portfolio companies find third-party service providers that offer matching savings programs, emergency loans and other nontraditional benefits for their employees, particularly for low-and-moderate income workers. Lafayette Square offers borrowers that provide such benefits a discount on the cost of their financing.
