Crosstown has a network of 27 bricks-and-mortar stores, trucks, market stalls and retail concessions | Photo credit: Rejoice Denhere

London-based premium doughnut and specialty coffee operator Crosstown has sold ‘substantially all of its business’ to hospitality and real estate firm Karali Group. 
 

The transaction includes the acquisition of Crosstown’s 27 operating locations, which comprises a network of bricks-and-mortar stores, trucks, market stalls and retail concessions. The deal also includes the transfer of 140 staff, including Crosstown’s CEO Howard Ebison and his leadership team.  

However, the deal will see founders Adam Wills and JP Then step away from the business. 

“We’re delighted to start the next chapter for Crosstown. 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,” Ebison said. 

UK-based Karali Group operates fast-casual concepts El Taco Loco, Dirty Dog Shack, Roosters, Sticky Sisters and Cafe Italiano via its Karali Snacks Limited subsidiary.  

The business, led by brothers Salim and Karim Janmohamed, was previously the largest Burger King franchisee in the UK before selling its 74-store business to Burger King UK in October 2022. However, Karali Group still operates 32 licensed Burger King stores in the US states of Ohio and Pennsylvania. 

“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,” said Karim Janmohamed. 

Wills and Then founded Crosstown in 2014. In March 2022, the duo sold a minority stake in the business to London-based private equity firm Foresight for £3m ($3.7m), which reduced their individual stakes to 35% each.  

Alongside artisan donuts and ice cream, Crosstown serves specialty coffee from London-based roaster Caravan.