Peachtree launches restaurant management division

PEACHTREE GROUP RECENTLY launched a restaurant management division to operate quick-service restaurants, starting with coffee shops at hospitals, universities, and other high-traffic locations. The venture, led by Daniel Puglisi, senior vice president of corporate operations in Peachtree's hospitality management division, began with a partnership with AdventHealth, opening a Starbucks at AdventHealth Orlando.

Peachtree is in talks with other coffee franchises to expand into high-demand markets with captive audiences, aiming to build a strong nationwide portfolio of quick-service coffee shop locations, the company said in a statement.

"Since our founding in 2007, we have consistently grown by identifying inefficient markets and capitalizing on them to achieve strong returns and build sustainable businesses," said Greg Friedman, Peachtree Group’s managing principal and CEO. "Expanding into restaurants from our existing hospitality management capabilities was a natural evolution. Our partnership with AdventHealth marks a significant milestone as we look to replicate this successful model across their network and other prime locations."

Peachtree is led by Friedman, Jatin Desai as managing principal and CFO and Mitul Patel as principal.

Growth strategy in motion

The new division will manage all restaurant locations outside Peachtree's hotel portfolio, including the transition of the downtown Orlando Starbucks at the Hilton Garden Inn and Home2 Suites by Hilton, the statement said. The first store under this division, a Starbucks at AdventHealth Orlando, is now open, featuring a two-story glass storefront on the hospital's flagship campus.

"We are excited about the potential to grow this venture rapidly, with an initial goal of reaching five stores as a beta test and ultimately aiming for 100 locations," Puglisi said. "Our focus is on hospitals, universities and other high-traffic, high-visibility locations where we can make the most significant impact."

Peachtree Group’s strategic approach and focus on customer service were key in securing the AdventHealth partnership. The initiative, developed over a year, began with a lease agreement in August 2023 and construction in February 2024. Given the positive impact on AdventHealth’s patient satisfaction and asset enhancement, Peachtree anticipates increased demand for similar arrangements.

Meanwhile, the U.S. quick service restaurant market was valued at around $320 billion in 2023, with coffee shops like Starbucks, Caribou Coffee, and Dunkin' accounting for 12 to 15 percent and generating tens of billions in annual revenue, Peachtree said.

Peachtree recently promoted Vickie Callahan to president of its management division, overseeing 88 hotels across 27 brands with 11,173 rooms in 23 states and Washington, D.C. Steve Mackenzie was also promoted to vice president of hotel operations, where he will manage the hotel portfolio, ensure financial performance compliance, and support team growth.