SCOTTSDALE, Ariz. -- KahalaCold Stone has acquired Cereality Cereal Bar & Caf a. Specific terms of the transaction were not disclosed.
Founded in 2003, Cereality is a relatively new concept in the quick-service restaurant (QSR) space, specializing in creating a unique and entertaining experience around the American ritual of eating cereal. Customers choose a base from Cereality's menu of more than 30 cereal varieties and signature cereal blends and select from 40 toppings and mix-in combinations to create their ultimate bowl topped with their favorite [image-nocss] assorted milk and hot and cold beverage. The offerings extend to parfaits, smoothies, cereal bars and other bakery items.
The Cereality customer experience is enhanced by a home kitchen atmosphere and the preparation of orders by pajama-clad cereologists.
Cereality has seven caf as in operation, with an eighth location scheduled to open at JFK International Airport later this month. Cereality currently holds franchise commitments for the opening of an additional 24 caf as over the next six years. Prior to 2007, Cereality had wholly owned and operated all of its caf as. There are now two franchise locations open and the company said it has received more than 7,000 inquiries to date from entrepreneurs interested in opening Cerealities across the country.
When we formed KahalaCold Stone, we promised to aggressively seek out acquisitions of leading brands in the QSR space to grow the portfolio of franchise brands for partners, and this is the first of many to come, said Kevin Blackwell, chairman and chief strategist of KahalaCold Stone, Scottsdale, Ariz.
Doug Ducey, CEO of KahalaCold Stone, said, We believe KahalaCold Stone is well-placed to scale the Cereality concept and create new opportunities for our more than 3,000 franchisees who are very taken with the concept and eager to explore multi-branding within our portfolio. We plan to grow the Cereality brand byproviding exciting opportunities for entrepreneurs, successful concepts for our franchisees and innovative, fun experiences for our loyal customers.
Cereality marks the first acquisition by the recently formed KahalaCold Stone. As announced on May 10, 2007, KahalaCold Stone was formed through the combination of Kahala Corp., a franchiser, developer and marketer of QSR, and the Cold Stone Creamery, the fastest-growing ice cream concept in the United States.
It owns and franchises 14 diversified restaurant and service brands resulting in more than 4,600 locations worldwide, and $1.1 billion in system-wide sales. Currently, the brand portfolio includes BLIMPIE, Cereality, Cold Stone Creamery, Frullati Caf a & Bakery, Great Steak & Potato Co., Johnnie's New York Pizzeria, NRgize Lifestyle Caf a, Ranch1, Rollerz, Samurai Sam's Teriyaki Grill, Surf City Squeeze, TacoTime, V's Barbershop, Waffl a.
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