Cold Stone Creamery, Kahala Join Forces

The Washington Post:

Ice cream maker Cold Stone Creamery and fast-food operator Kahala Corp. will combine to form a holding company they hope will be able to compete with private equity firms for a greater share of the fast-food sector.

The 13 brands under the new Kahala Cold Stone umbrella will include submarine sandwich shop Blimpie, cheesesteak chain The Great Steak & Potato Co., chicken sandwich maker Ranch 1 and Mexican fast-food chain Taco Time, among others.

The privately held companies didn’t disclose terms.

The new holding company, which will be headquartered their home base of Scottsdale, Ariz., is expected to generate more than $1.1 billion in sales with more than 3,000 franchisees and about 4,600 retail locations in 15 countries. Full article.