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FEATURE
Nestle Toll House Cafe by Chip looking to make
some dough with expansion plans
Crest Foods, Inc. is looking to cash in on
its chips - chocolate chips, that is. The company, which formed a long-term
agreement with Nestle Food Service back in January 2000, is planning an
aggressive expansion this year and in the near future for its Nestle Toll House
Cafe by Chip concept.
The shops sell brand name products like Toll House, Nescafe, Nesquik,
Butterfinger and Crunch on its menu, which consists of cookies, brownies,
muffins, croissants, cookie bars, gourmet coffees, cappuccinos, espressos,
mochas, frozen drinks, ice cream mixers, shakes, sundaes and smoothies. For
children and non-coffee drinkers, the stores have hot chocolate, a variety of
juices and flavored milk drinks. The most expensive item is just under $4.
The company currently operates 23 locations nationwide, including CA locations
at the Hollywood and Highland Mall in Hollywood, Arden Fair in Sacramento and
Valencia Town Center in Valencia, CA; Desert Passage in Las Vegas, NV; Flat Iron
Crossing Mall in Broomfield, CO; TX locations at the Sunrise Mall in
Brownsville, Dallas Galleria Mall in Dallas, Baybrook Mall in Friendswood,
Stonebriar Center in Frisco, Grapevine Mills Mall in Grapevine, Houston Galleria
in Houston and La Plaza Mall in McAllen; Two North Riverside in Chicago, IL; MI
locations at River Town Mall in Grandville, Cross Roads in Kalamazoo, Lansing
Mall in Lansing and Oakland Mall in Troy; Easton in Columbus, OH; Miami
International Mall in Miami, FL; Greenbriar Mall in Chesapeake, VA and Mall at
Rockingham Park in Salem, NH. The company is currently seeking growth
opportunities nationwide during the coming 18 months, with a focus on Phoenix,
AZ; Atlanta, GA and Kansas City, MO. Nestle Toll House Cafe by Chip also
recently announced the signing of a multi-unit development agreement with Wonka
Sweets, Ltd. of Danbury, Connecticut to develop cafes in Southwest CT and
Southeast NY.
The stores vary in size. An inline or sit-down unit typically ranges from 800
sq.ft. to 1,500 sq.ft., while kiosks and related storage space will typically
range between 300 sq.ft. to 400 sq.ft. Each cafe has 15 sq.ft. to 30 sq.ft. of
service counter space. Once development of a store begins, it usually takes
about four months for the store to open.
To begin a franchise, the initial investment is between $142,100 and $312,500.
The initial franchise fee is $25,000 for the right to establish a single cafe
under a franchise agreement. Average sales of $300 psf have been reported. The
company provides a manual of how to run a business to potential franchisees,
offers site selection guidelines, cafe plans and specifications, training,
on-site assistance, on-site evaluation and continuing education with periodic
e-mails and voicemails. The ongoing royalty fee is 7%, while terms of the
agreement are 10 years and renewable. Approximately 50% of all franchisees own
more than one unit, while the stores usually employ between eight to 10 workers.
Absentee ownership of a franchise is allowed (100% of current franchisees are
owner/operators).
The company was founded in 2000 by Ziad S. Dalal and Doyle P. Liesenfelt, when
it opened six initial locations.
For more information, contact Crest Foods, Inc., 1900 Preston Road, Suite
267-314, Plano, TX 75093; 214-495-9533, Fax 214-853-5347; Email: info@nestlecafe.com;
Web site: www.nestlecafe.com.
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