Why people love Dig Inn, the healthy restaurant chain that just raised another $30 million from investors

Leanna Garfield

2017-03-22T13:00:00Z

Dig Inn, a 15-restaurant chain with locations in New York and Boston, is already a hit with healthy eaters. In both cities, you're bound to see crowds lined up to get market plates any given day of the week.

With an average meal price of $10 and a focus on produce sourced from local farms, the chain aims to make simple, high-quality food available at a relatively affordable price.

Now Dig Inn has raised an additional $30 million in a Series D funding round led by AVALT. Other contributors to the round (its largest to date) include Monogram Capital Partners and Bill Allen, former CEO of OSI Restaurant Partners (which manages Outback Steakhouse).

The company had previously raised $21.5 million in earlier rounds of funding.

Dig Inn will use the new investment to launch more restaurants, open a culinary training school that's free for employees, make key leadership hires, and build out its internal tech platform. The chain also plans to open 13 to 15 more locations in New York and Massachusetts by 2019, and expand to a third to-be-determined state in 2018, founder and CEO Adam Eskin tells Business Insider.

Here's what it's like to eat there.

Dig Inn wasn't always known by its current name. In 2011, Eskin, a former private equity associate at Wexford Capital, officially started rebranding what was then called Pump Energy Food, a five-store eatery that catered to a bodybuilding crowd. Eskin changed the name to Dig Inn and completely revamped the menu to focus on fresh, locally sourced produce.

adam eskin — Dig Inn founder and CEO Adam Eskin. Dig Inn

These days, Dig Inn is focused on becoming what Eskin calls a "fine-fast" chain that combines fast-casual and fine dining.

With the new funding, Dig Inn plans to launch 13 to 15 more locations in New York, Massachusetts, and a third state by 2019. "Dig Inn is creating a new standard for exceptional food that delivers on quality, value and convenience, and we're looking forward to helping expand the concept to additional markets," says Mark Verdi, a partner at AVALT.

Like growing chains such as Sweetgreen and Chopt, Dig Inn has benefited from a consumer push toward healthier eating.

Dig Inn is perhaps best known for its market plates, which feature two side dishes and a protein on a bed of grains or greens. This one has herb roasted chicken, sweet potatoes, and kale.

Dig Inn Herb Roasted Chicken Breast Market Bowl

Proteins — charred chicken, spicy meatballs, grilled salmon, flank steak, or veggies — are kept warm in large, cast-iron pots.

For a healthier alternative, patrons can have their protein served on a bed of greens rather than grains. A few locations also offer brunch.

Dig Inn partners with small-scale farms in Upstate New York, Long Island, New Jersey, New England, and Pennsylvania to bring fresh produce to its stores. Eskin says the menu is wholly determined by what is in season.

A post shared by Dig Inn (@diginn)Feb 4, 2017 at 8:12am PST

Dig Inn is only concentrating on three states right now so the company can scale sustainably. The company works with a variety of farmers in different regions, and working in fewer locations allows Dig Inn to preserve these relationships, Eskin says.

"Having a background in private equity, we don't just want to grow this business for growth's sake, lose passion for what we do, or the reasons why were here," Eskin says. "I think that's what some folks can end up doing when they raise this kind of capital."

Kale, tofu salad, and broccoli with roasted garlic and almonds are among the most nutritious (and popular) side dishes.

Dig Inn's recipes don't call for many ingredients. Most are flavored with olive oil and one or two herbs.

Once the produce is properly chopped and seasoned, it is stored in equally portioned cases to make sure the taste is replicated across servings.

A post shared by Dig Inn (@diginn)Nov 11, 2016 at 8:05am PST

Workers spend hours chopping mounds of kale for the lunchtime crowd.

Some Dig Inn locations have homey seating areas downstairs, complete with marble tables, wooden chairs, and booths.

Dig Inn is also working on building up the tech side of its business. Its mobile app allows customers to place an order for pickup and delivery, and the latest funding will allow them to improve it even more.

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