Salt Hank’s — the Manhattan sandwich shop that went viral for serving only one French dip — has been acquired by Wonder, a delivery and restaurant company valued at $9 billion, according to an Aug. 20 press release and coverage by Eater NY.
What Wonder bought
Ownership of Salt Hank’s storefront, menu, and brand transferred in the deal, the press release said. A Wonder representative declined to disclose the purchase price, according to Eater NY.
Where to find it next
The French dip is slated to land at Wonder’s Upper East Side location this fall for pickup and delivery via the Wonder app, with additional sites to follow, the press release said. Wonder also said Salt Hank’s original Bleecker Street shop will remain open.
Who’s staying on
Salt Hank’s chef Daniel Rubenfeld joined Wonder and continues directing the food, while co-founder Henry Laporte signed on to guide brand expansion and co-founder Ian Henderson-Charnow remains an adviser, according to the press release. Laporte said in the release that he had previously turned down offers that pressured the team to “lower food costs, change suppliers or cut corners,” adding, “Wonder was the only partner that never asked us to do that.”
Can the cult sandwich scale?
Some observers question whether Salt Hank’s appeal can survive rapid expansion. The draw rests partly on Laporte himself, the single storefront, and the pilgrimage customers make to get there, mergers and acquisitions attorney Morgan S. Smith told Inc. “But growth needs to be paced around whether the product can be reproduced, not simply around how many locations Wonder can open,” Smith said.
Inside Wonder: money, footprint, and deals
E-commerce billionaire Marc Lore founded Wonder and serves as chief executive, according to Eater. Wonder raised more than $650 million at a $9 billion pre-money valuation, Fortune reported in July, and Lore said Wonder would be prepared to go public early next year, according to Fortune. The company runs roughly 153 locations along the East Coast, 25 of them in New York City, according to Eater.
Wonder has been on a buying spree: it purchased Blue Ribbon Fried Chicken and closed on barbecue chain Mighty Quinn’s in July, according to Fortune. Investor documents reviewed by The Information project Wonder will burn close to $2.7 billion in cash through 2029, Fortune reported.
Timeline notes and what’s unclear
The press release announced the acquisition on Aug. 20, while the transaction was described as having closed on Friday, Aug. 14; the exact year and dates require clarification. The company did not disclose the purchase price, according to Eater NY.
