Burger King father-son team acquires London favourite Crosstown Doughnuts
A father-son team who once led the largest Burger King franchise in the UK have acquired Crosstown Doughnuts after the brand launched a search for new investment earlier this year.
The company, an artisan doughnut, small batch ice-cream and specialty coffee brand, operates 27 locations and employs 140 employees.
Following the takeover by Karali Group, Crosstown Doughnuts will continue to be led by chief executive Hoard Ebison.
The majority of Crosstown Doughnuts’ stores operate from market units, kiosks, concessions and trucks and are located across London as well as across the UK.
Crosstown Doughnuts had been working with advisers from Interpath Advisory to explore investment options.
Karali Snacks Limited has acquired the business and assets of Crosstown Doughnuts, which is part of the Karali Group led by Salim Janmohamed and Karim Janmohamed.
Karali Group is a family-owned business and was the largest independent UK Burger King franchisee until exiting the portfolio in 2022.
It still operates in the North American market, however, after it acquired 32 Burger King’s in Ohio and Pennsylvania.
‘Wealth of experience’
Ebison said: “We’re delighted to start the next chapter for Crosstown.
“Since we launched 10 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.”
Sam Birchall, head of Special Situations M&A at Interpath Advisory, added: “The team at Crosstown has a great concept that has gained an enviable foothold in the market.
“This transaction will enable the team to build upon its network of retail outlets with the investment and support of Karali Snacks. We wish the team all the best for the future.”
‘We are delighted’
Karim Janmohamed of Karali Group 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.”
Sarah Teal, corporate restructuring and advisory partner at Shoosmiths, added: “We are pleased to have played a part in this pivotal moment for the Crosstown team.
“Today’s result is thanks to many hours of dedicated collaborative work and it has been a pleasure working closely with Crosstown and their advisers at Interpath.
“We are confident that with the backing of Karali, this exciting business will continue to flourish and grow.”
Freeths advised Karali Group on the acquisition. The Freeths legal team was led by national head of commercial Iain Bowler and restructuring and insolvency director Miles Hacking.
They were supported by a multi-disciplinary team including real estate partner Lucy Bradban.