Nestle Toll House Cafe acquired by FAT Brands

Nescafe Toll House Cafe franchise will be getting a new owner as FAT Brands Inc. has entered into a deal to buy it this year. It was reported that the American multi-brand restaurant operator headquartered in Beverly Hills, California, will be acquiring around 85 outlets of Nestlé Toll House Café by Chip in the United States.

With the deal, FAT Brands will effectively become the dessert cafe’s new parent company. According to Fox Business, the restaurant company announced on Wednesday, May 25, that it would acquire the cafe franchise but did not mention the financial terms of the deal.

FAT Brands said that this purchase would definitely help boost its dessert portfolio, especially its cookie and ice cream line. Once the negotiation is closed, the Nestlé Toll House Café stores will be opened and reintroduced as Great American Cookies, which is already an existing gourmet cookie brand owned by FAT Brands as well.

Nestlé Toll House Café will also be merged with FAT Brands’ ice cream chain called the Marble Slab Creamery. The ice cream maker has been offering 75 flavors already, and with the merge with the bakery chain, this number of flavors is expected to grow further.

“In 2022 we are focused heavily on our deep organic growth pipeline, but we saw great value in making this accretive acquisition. 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,” Andy Wiederhorn, FAT Brands chief executive officer, said in a press release.

The chief added, “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.”

The 85 Nestlé Toll House Café by Chip stores across the U.S. is owned and operated by Crest Foods Inc., and the franchise was launched in the market in 2000. The dessert and cafe chain are present in shopping centers and popular malls.

It has become a favorite place for people who love cakes, cookies, crepes, ice cream, brownies, milkshakes, and smoothies. The place also serves sandwiches and hot coffee, and for years it has been the biggest competitor of Mrs. Field’s Original cookie brand.