Franchise operator Karali Snacks has completed the acquisition of Crosstown Doughnuts, a UK-based artisan doughnut and coffee brand.
The deal, which was structured as a pre-pack administration transaction, includes the business and assets of Crosstown Doughnuts’ parent company, Crosstown Dough Ltd.
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The move follows Crosstown Doughnuts initiating a search for new investment in the early part of 2024.
Crosstown Doughnuts, known for its artisanal offerings, operates 27 locations and has a workforce of 140.
The brand’s presence includes stores, market units, kiosks, concessions and trucks.
Three Crosstown stores, Bath, Bristol and Fenchurch Street in London, were not part of the sale and have been closed following the acquisition.
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By GlobalDataThe acquisition by Karali Snacks, a family-owned business and former largest independent UK Burger King franchisee, marks a significant expansion of its portfolio.
The financial details of the acquisition have not been disclosed.
Despite the change in ownership, Crosstown Doughnuts will continue to operate under the leadership of CEO Howard Ebison.
Howard Ebison said: “We’re delighted to start the next chapter for Crosstown. Since we launched ten years ago, the fantastic team has created a completely unique proposition in bakery. Crosstown has become a destination for food and flavour, both in-store and online.
“The Karali Group brings a wealth of experience and an exceptional track record growing hospitality brands. Their investment is testament to the strength of the Crosstown brand, the commitment of our teams and the loyalty of our customers.”
Karali Snacks’ history includes experience in the food service industry. It was the largest independent Burger King franchisee in the UK before divesting its portfolio in 2022.
It also maintains a presence in the North American market, following its acquisition of 32 Burger King locations in Ohio and Pennsylvania.
Karali Group investments and strategy group head Karim Janmohamed said: “We are delighted to get this transaction over the line and are excited about the opportunity to work with the Crosstown team on further developing and enhancing this fantastic brand and offering.
“The Crosstown brand is synonymous with excellence, innovation and quality in the bakery sector, and we were immediately attracted to the chance to invest and propel the business forward.
“Karali Snacks, a division of the Karali Group, will manage the investment in Crosstown as the Karali Group furthers its investment strategy across the retail, consumer, leisure and real estate spaces.”
