Fat Brands acquires Nestlé Toll House Café by Chip

Executives at multi-brand franchisor anticipate economies of scale, increased competitive positioning in cookie-and-ice-cream space

Fat Brands acquired Nestlé Toll House Café by Chip from Crest Foods, according to an announcement. The purchase includes 85 cafes in the United States. The acquisition of Nestlé Toll House Café by Chip will bolster Fat Brands’ competitive positioning in the cookie and ice cream space.

In July of 2021, Fat Brands finalized its acquisition of Global Franchising Group, which included the Great American Cookies and Marble Slab brands.

Now, the multi-brand franchisor has the ability to create economies of scale. Specifically, its Atlanta-based manufacturing facility will increase production volume as a result of the product needed to be generated for the 85 Toll House stores.

The Toll House stores will be rebranded as Great American Cookies units following the acquisition.

[Related article: Fat Brands finalizes acquisition of Global Franchising Group]

“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 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.”

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