Atlanta-based Planet Smoothie LLC, a franchise system with more than 100 units in 16 states, has been acquired by Tennessee-based Tasti D-Lite, a frozen dessert chain catering to health-conscious consumers.
The strategic acquisition, which closed Nov. 30, will allow both brands to broaden product offerings, improve retail sales and accelerate unit growth through co-branding initiatives and non-traditional development opportunities.
As part of the acquisition, Tasti D-Lite products will be added to select Planet Smoothie stores, and vice versa, within the next few months.
"We are giving our consumers even more reason to visit our stores," said Jim Amos, CEO of Tasti D-Lite. "By adding a product line that enhances Planet Smoothie's menu, we are adding a new component that broadens the offering to the consumer."
This acquisition is Tasti D-Lite's latest initiative focused on increasing growth through the pursuit of non-traditional development methods.
Earlier this year, the first drive-thru Tasti D-Lite location opened in Columbia, Mo., and the first on-campus store was opened at Duke University. In addition, Tasti D-Lite introduced its first self-serve model to the brand's long-time full-serve model, and also introduced its first "store-within-a-store" location on Las Vegas Boulevard.
"This acquisition presents an opportunity to combine two iconic brands to create a winning combination for both the customer and the franchisee," Amos said. "The consumer profiles of Tasti D-Lite and Planet Smoothie are very similar, so combining the two complementary brands will provide both brands an opportunity to increase the scale of the combined store network as well as sales at the store level."
Following this transaction, Tasti D-Lite plans to offer new franchisees the option to own and operate in a co-branded store concept, which fully integrates both brands into a unique customer experience.
"Combining these brands will add value for our franchisees, which in turn will allow us to accelerate the growth of our store network" Amos said. "We are thrilled to have acquired such a compelling brand with great promise that complements our product offering."
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