Food - Drink
The Demise Of Nestlé Toll House Cafés
When Nestlé Toll House decided to open its very own cafés across the nation in the early 2000s, it seemed like it would be a very profitable move. Despite the company's customer loyalty and cafés’ range of coffees, baked goods, and even lunches, Nestlé Toll House Cafés by Chip eventually became an unsuccessful business venture.
By 2008, the company had 100 franchises, and in 2014, the company's CEO even spoke about its ongoing growth and popularity. However, per Eat This, Not That, a lot of the cafés were situated in malls and the decrease in mall shoppers coincided with their failing financial status; by 2021 Nestlé Toll House Cafés' total sales had fallen by a quarter.
The brand was also dealing with legal issues, as Nestlé was in a court battle with the company that licensed it, Crest Foods, for five years; between financial and legal problems, the cafés proved to be unsalvageable. Restaurant Business reports that Nestlé has officially sold the cafés to Fat Brands, which has decided to scrap the franchise entirely.