Nestlé Toll House Café franchise to get new owner through acquisition deal
FAT Brands Inc. will acquire approximately 85 Nestlé Toll House Café by Chip stores in the US
Nestlé Toll House Café by Chip is getting a new parent company.
The North American bakery franchise will be acquired by FAT Brands Inc. – the global restaurant franchise company that brands itself as "Fresh. Authentic. Tasty."
FAT Brands announced its acquisition plans on Wednesday, May 25, but refrained from disclosing how much the cookie franchise acquisition will cost.
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In a press release, FAT Brands stated the purchase is "expected to increase" the company’s dessert portfolio, specifically within the cookie and ice cream category.
The Nestlé Toll House Café stores will be rebranded as Great American Cookies – an existing gourmet cookie franchise that FAT Brands already owns. The soon-to-be converted bakery chain will also join the FAT Brands’ ice cream chain Marble Slab Creamery, which has more than 75 flavors on its menu.
Great American Cookies and Marble Slab Creamery introduced new logos and store designs in August 2020. Both companies are owned by FAT Brands Inc. (Global Franchise Group)
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"In 2022 we are focused heavily on our deep organic growth pipeline, but we saw great value in making this accretive acquisition," said FAT Brands CEO Andy Wiederhorn, in a statement. "These stores will fold seamlessly into our Quick-Service Division and provide us the opportunity to increase the capacity of our manufacturing business, a key growth objective."
There are approximately 85 Nestlé Toll House Café franchise locations throughout the U.S., according to FAT Brands.
Great American Cookies is a national bakery franchise that specializes in cookies and cookie cakes. (Great American Cookies)
The locations were owned and operated by Crest Foods, Inc. – a restaurant franchisor company based in Richardson, Texas.
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Crest Foods introduced the Nestlé Toll House Café to the U.S. market in 2000. The chain is often found in malls and shopping centers. Typical menu items include cookies, cookie cakes, brownies, sandwiches, crêpes, ice cream, milkshakes, smoothies, and frozen and hot coffee.
The chain’s main competitor is Mrs. Fields' Original Cookies Inc. – a national snack food franchisor that sells cookies and other baked goods.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FAT | FAT BRANDS INC. | 5.29 | -0.07 | -1.31% |
FAT Brands’ acquisition announcement also revealed that it already has new plans for the Nestlé Toll House Café.
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The company will integrate the cookie franchise into its Atlanta-based manufacturing facility, which it says will provide "supply chain efficiencies and cost-savings" along with increased scale, according to FAT Brands’ press release.
Nestlé Toll House is famous for its chocolate chip cookie dough, chocolate chips and other baking products. The company's origins date back to the 1930s, when its founder Ruth Jones Graves Wakefield made her cookie recipe commercially available. (Justin Sullivan/Getty Images)
"To date, acquisitions have been a strong growth vehicle for FAT Brands, and we anticipate the combination of our production and distribution facility and scale to increase the profitability of the franchisees that are joining us in this acquisition," Wiederhorn said.