FAT Brands has announced the acquisition of the Nestle Toll House Café By Chip franchise brand from Crest Foods, Inc. The franchisor will rebrand the stores as Great American Cookies, and is intended to further FAT Brands’ position in the dessert category within the cookie and ice cream spaces. The food franchisor already owns the Great American Cookies and Marble Slab Creamery brands.
Crest Foods currently has 85 franchised units of the Nestle Toll House Café By Chip brand across the U.S. Due to this acquisition, FAT Brands’ Atlanta-based manufacturing facility will see higher supply chain efficiencies and reduced costs, as well as an increase in scale due to the additional locations the facility will have to manufacture for.
“In 2022 we are focused heavily on our deep organic growth pipeline, but we saw great value in making this accretive acquisition,” said Andy Wiederhorn, CEO of FAT Brands.
“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. 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.”
FAT Brand’s last acquisition was made in December 2021, when it acquired Native Grill & Wings from Cybeck Capital Partners, LLC for $20m, read more here.
