FAT (Fresh. Authentic. Tasty) Brands, Inc. said it has reached an agreement to acquire the Nestle Toll House Café by Chip franchise business from Crest Foods, Inc. Financial terms of the transaction were not disclosed.
Once the transaction is completed, FAT Brands said it will rebrand the approximately 85 Nestle Toll House Café by Chip stores as Great American Cookies. Adding the stores will increase FAT Brands’ foothold in the dessert category within the cookie and ice cream spaces, the company said.
“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, chief executive officer 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.”
Nestle Toll House Café by Chip was founded in 1998 with the chain’s first location opening in Stonebrier Mall in Frisco, Texas, in 2000. The company’s products include cookies, cookie cakes, brownies, ice cream, and hot and cold beverages.Founded in 1977, Great American Cookies was acquired by FAT Brands in the summer of 2021 as part of the company’s $442.5 million acquisition of Global Franchise Group, a deal that also included Round Table Pizza, Marble Slab Creamery, Pretzelmaker and Hot Dog on a Stick.