Eastman Egg Eyes Expansion After $1.5 Million in New Funding
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The Eastman Egg Co., the egg-centric breakfast and lunch business that started with a food truck in 2013, is ready to spread its wings again thanks to $1.5 million in new funding.
Eastman has signed a letter of intent to open its next location in Chicago’s Lakeview neighborhood, founder and CEO Hunter Swartz said, declining to give an exact location. That location, its first outside of downtown, does not yet have an opening date.
Eastman has a location on North Wacker Drive in the Loop and at Ogilvie Transportation Center in the West Loop. It also has a coffee bar inside Trunk Club’s Ohio Street location. After opening the Lakeview restaurant, the company is looking to River North or other locations in the Loop, Swartz said. The goal is to have two new locations open in the next 12 months, he said.
Eastman has a small menu that focuses on local ingredients and scratch-made egg sandwiches and coffee. Sandwich prices range from $6 to $9. Earlier this month, it introduced a burger to expand its lunch business.
Swartz wouldn’t disclose sales figures but said the company exceeded its projections last year by 50 percent.
Eastman smells opportunity in the high-end fast-food breakfast market. The success of the so-called fast-casual segment has surged in recent years, as customers prove they’re willing to pay more for higher quality and locally sourced food. Growth in that segment, which includes chains like Panera and Chipotle, jumped 11.4 percent last year, nearly double the rate of any other segment, research firm Technomic said.
Eastman has been able to grow quickly and gain investor attention because it’s in a part of the breakfast market that’s underserved, Swartz said.
“You’ve got coffee shops that offer a great cup of coffee but they’re not as focused on the food,” Swartz said. “I think people who come to Eastman come for the food first.”
But Swartz says that technology is also an integral part of Eastman’s success. The restaurant’s smartphone application allows users to order ahead, and then signals the kitchen to start preparing the food when a customer is 75 yards away.
About 10 percent of its orders are placed through the app, but Swartz said he expects that to grow as Eastman expands the app’s features and awareness grows. Eastman is also planning to introduce a loyalty program, he said.
Hyde Park Angels led the funding round. Other backers include new investors like the Sustainable Local Food Investment Group and existing investors including Caretta Partners, Jumpstart Ventures, Bluestein and Associates and Trunk Club co-founder John Tucker. Tucker is also a board member at Eastman. Swartz and Chief Operating Officer Drew Davis, who is executive chef, also contributed.
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