Danny Meyer’s Investment Firm Throws $10M at Gourmet Cookie Chain

Gourmet cookie concept Chip City Cookies has the capital to expand beyond New York City, thanks to a $10 million investment from Enlightened Hospitality Investments (EHI), the equity fund associated with Danny Meyer’s Union Square Hospitality Group.

Chip City Cookies Cofounders Peter Phillips and Teddy Gailas say the multimillion-dollar investment will allow the brand to accelerate its growth strategy, expanding to new markets including New Jersey and Florida. The 14-unit brand currently has locations in Manhattan, Brooklyn, Queens and Long Island.

The companies say the investment will also provide strategic and operational guidance with the team at Union Square Hospitality Group, which operates concepts like Union Square Cafe and Gramercy Tavern and founded Shake Shack in 2004. EHI’s other investments include Salt and Straw and Joe Coffee Co.

“At EHI, we are always looking for businesses that have created craveable products and have earned a tribe-like following. Chip City checks both of those boxes in a significant way,” says Meyer, co-founder and managing partner of EHI, in a press release. “Beyond the cookies, which speak for themselves, we are excited to support the growth aspirations of the passionate team behind Chip City, who exemplify our values of hospitality and community.”

Childhood friends Phillips and Gailas started the concept as a hobby, with the pair challenging each other on who could make the best cookie. After landing a small storefront and some equipment, Chip City Cookies was born in Astoria, Queens, in 2017.