Five Star Breaktime Solutions(Link opens in new window)
Partnering to Accelerate a Micro Market Conversion Growth Strategy
Five Star is a premier, route-based distributor of on-site, unattended food and beverage solutions in the Southeast and Midwest.
Five Star offers turnkey micro market, vending and refreshment services to over 8,000 customers seeking to offer fresh, healthy, convenient and affordable food and beverage options to their employees.
Since Freeman Spogli's investment in 2019, Five Star has grown its micro markets by ~3.5x to over 4,600 locations through new installations, converted vending accounts and acquistions. Five Star also operates and services over 42,000 vending machines which serve as future micro market conversion candidates. Additionally, Five Star offers office coffee, bulk water and dining services.
Five Star serves its customers through a multi-state, route-based distribution network of approximately 45 branch depots and nearly 600 routes, which have increased revenue per route by ~60% since Freeman Spogli's investment driven by incremental route density and operational improvement.
Since 2009, Five Star has completed 80+ accretive acquistions, including nearly 40 from 2019 to 2024 which are fully integrated shortly after closing into Five Star's systems and operating procedures.
Five Star is led by an experienced and tenured senior management team led by CEO Richard Kennedy. The Freeman Spogli deal team and industry executives partner with management to develop and implement strategic growth initiatives, assist with M&A diligence and execution, achieve debt financing objectives, and support strategic decision making.
*In April 2025, Freeman Spogli monetized its investment in Five Star Breaktime Solutions through a continuation fund. The Freeman Spogli-led continuation fund will provide the company with additional capital and resources to execute on value creation initiatives.
Sector benefitting from shifting consumer preferences towards daily snack consumption and employers offering greater amenities to improve the workplace experience.
Micro Markets
Vending Machines
Customers
Routes
Branches
States
As of 12/31/2024
Route-Based Distribution Model
Merchandisers provide regular replenishment keeping product fresh and in-stock
Expanded Assortment Drives Sales and margin Uplift After Conversion from Vending to Micro Market
Micro Markets offer 5x the SKUs of traditional vending including fresh, frozen, meal replacement and better-for-you products leading to a lift in sales and margin after conversion from vending
Unattended Labor Model
Self check-out kiosks allow micro markets to benefit from an unattended labor model while security systems and closed campus environments mitigate theft or loss
Investment in Technology
Kiosks provide real-time inventory levels to branch warehouses enabling efficient fulfillment processes
Route-Based Distribution Model
Merchandisers provide regular replenishment keeping product fresh and in-stock
“Freeman Spogli has been a valuable partner from the beginning. They have provided specific financial and operational insight when needed and supportive board oversight on an ongoing basis. We look forward to the ongoing relationship and working together to create further value in our business. ”
The above Testimonials/Endorsements (“Endorsements”) were provided by executives of FS portfolio companies, some of whom are current investors of FS. No compensation, either directly or indirectly, was provided in exchange for such Endorsements. There is a potential conflict of interest in a portfolio company executive providing an Endorsement, as an investment in any FS fund may indirectly benefit such portfolio company. None of the above should be construed as advice or solicitation to buy or sell any securities nor as advice with respect to tax, legal or accounting matters.