Peachtree Group is tapping into the potential of the expanding quick service market and has launched a restaurant management vertical. Helmed by Daniel Puglisi, SVP of corporate operations for hospitality management, the new division will be focusing on operating quick-service restaurants, starting with coffee shops.
The new venture is part of Peachtree’s strategy to strengthen its presence in the hospitality industry. The group has partnered with AdventHealth and recently opened a Starbucks location in the AdventHealth Orlando hospital.
The expansion into restaurants from its existing hospitality management business was a natural evolution, Peachtree’s managing principal and CEO Greg Friedman said. Since the company was founded in 2007, Peachtree’s growth has been fueled by identifying inefficient markets and capitalizing on them to achieve strong returns and build sustainable businesses, he said.
The quick service market in the U.S. was valued at $320 billion in 2023, including major chains like McDonald’s and smaller regional businesses. Coffee shops, including big players like Starbucks, Dunkin’ and Caribou Coffee, constitute about 12% to 15% of this market, contributing billions in annual revenue, Peachtree said in a release.
“Our partnership with AdventHealth marks a significant milestone as we look to replicate this successful model across their network and other captive locations,” Friedman said.
The Starbucks at AdventHealth Orlando is the first store to be opened under Peachtree’s new unit. Featuring a two-story glass storefront, the store is positioned within the hospital’s flagship university campus. The initiative is part of a broader plan to improve patient satisfaction and offer convenient, high-quality service to hospital staff and visitors.
The group is also in talks with other coffee franchise offerings and is aiming to grow its reach to high profile or high demand markets with captive audiences. Peachtree intends to develop a robust portfolio of high-quality quick service coffee locations across the U.S.
The new division will be in charge of all new and existing restaurant locations not within its own portfolio of hotels. This will include transitioning its downtown Orlando Starbucks store at its dual-branded Hilton Garden Inn and Home2 Suites by Hilton to the restaurant management vertical.
“By leveraging our extensive hospitality expertise and premium brand partnerships, we are able to deliver exceptional experiences to our customers and value to our landlord partners,” Puglisi said.
Peachtree will be focusing on hospitals, universities and other high-traffic, high-visibility locations, where the group can make the most impact.
The launch of the division follows a year-long development process, which began with a lease agreement signed in August 2023. The Starbucks at AdventHealth Orlando broke ground in February. The group has toured other AdventHealth campuses, laying the groundwork for future expansions.