Kolache Factory

historic czech PastrY stands the test of time

Kolache Factory Celebrates 40 Years of Sweet Success

When John Banks and his late wife Jerilyn opened the first Kolache Factory store in Houston back in 1982 — during a recession — he had no idea what it would grow into, but he believed in his c oncept of a small handheld Czech pastry filled with fruits, meats, and cheeses that could be eaten on the go.

John Banks and his late wife Jerilyn

Forty years later, Banks marvels at the brand he built with his family. His wife is now gone, but his daughter Dawn Nielsen serves by his side as Chief Operating Officer.

On the 40th anniversary on September 13, 2022, father and daughter showed up at one of the Houston-area stores to celebrate with their customers and serve up 40¢ fruit and cream cheese kolaches to loyal customers, special kickback pricing to celebrate the milestone. And what’s more, there were 60 other Kolache Factory stores coast to coast doing the same thing.

“It was an amazing day! So much energy and kolache love in the air,” exclaimed John Banks, President and Founder of Kolache Factory. “And all of our franchisees around the country really embraced this with us, which meant a lot to me, and of course, our customers appreciated it.”

Building a Brand

After experiencing fast local growth in Texas, where the Czech heritage and love for kolaches are strong, Banks decided to start franchising Kolache Factory in 2000 — also during a recession. In 2008, another recession hit, but the bakery chain kept chugging along. Then in 2020, COVID hit, and yet 2021 saw the best year of sales in Kolache Factory’s 40year history! Today, Kolache Factory has 33 franchises from California to South Carolina, and the growth continues despite another recession looming. Nielsen says the bakery-café’s 25 kolache flavors, which are made fresh daily, have proven to be recession-resistant and pandemic-proof. Kolache Factory’s business model helps with that, too.

“Our price points are low, our products are unique and fun to eat, and are very filling. The fact that we are not full-service, dine-in restaurants really helped us during COVID when no one wanted to be sitting in a restaurant,” explained Nielsen. “When inflation is high, the first thing folks cut out are the high-ticket items, but kolaches are a quick breakfast and lunch option that can feed people for only $2 to $4 a person. That is a comfortable place to be considering all other options out there. So, I feel really good about where we are and the value we provide for a great-tasting product.” Family values and generational loyalty also contribute to the company’s growth. A third generation of the Banks family is about to join the corporate team, as Nielsen’s daughter Sabrina prepares to follow in her mother and grandmother’s footsteps. Long-time franchisees are also bringing the next generation of their families on as owners, and new franchisees are already planning to make their Kolache Factory store a generational legacy for their children.

people outside of Texas are still learning about them and falling in love with them,” says Nielsen. “There is so much opportunity for growth across the country, and franchising is the way to make that happen. If we stay true to offering our customers a great experience with a great product for a great value, there will always be entrepreneurs who want to join our family.” Kolache Factory is expanding nationwide by adding franchise units and receives national attention for its concept and product. Food Network recognized Kolache Factory as one of the Top 5 Drive-thru’s in America, and Modern Baking magazine named them one of the top 50 food service bakeries in the United States, making it one of the fastest growing companies in Houston! Kolache Factory was even anointed the #1 Baked Good franchise in 2022 and among the top 200+ food-based franchises last year by Entrepreneur magazine. Nielsen keeps the company on the cutting edge by keeping the best of what her dad started and adding to it with the latest in technology, a constant array of new flavors, and an eye toward future trends in what customers want out of their dining experience. This forward-thinking mindset has helped Kolache Factory thrive and continue to soar to new heights. The franchise enjoys being part of a 12-billion-dollar market as bakery-cafes are expected to expand over

Banks and his daughter dawn nielsen serves by his side as chief operating officer

the next five years, according to industry market research site IBISWorld.com.

“My team embraces change and is always looking for ways Kolache Factory can offer the best customer experience while holding onto the principles my parents started the company with four decades ago,” says Nielsen. “I cannot wait to see what the next generation of Kolache Factory will look like!”

still don’t know what a kolache is? here’s a kolache 101:

Kolaches (pronounced koh-lah-chees) were born in Czechoslovakia centuries ago when a young girl nabbed some soft, sweet bread dough from her mom, added plums, and tossed it in the oven. Her dad grabbed one for a snack, and when he took a bite, the hot plum juice made him circle like a wheel in delight. The Czech word for wheel is “kola” — so the kolache was born. It became a tasty and beloved treat throughout Eastern Europe and arrived in America in the 1850s when Czech settlers came to Texas. By the 1900s, the Czech immigrants were holding yearly celebrations to honor their beloved culinary treat — the kolache.

It should be noted that traditional kolaches are fruit-filled, while the meat varieties made popular by the Czech Texans were known as klobasneks, or in plural, klobasniky. Now, that Texan twist includes savory meats, cheeses, and spices, and the term kolache has become a catchall for anything wrapped in the soft, semi-sweet dough! Kolache Factory has taken the iconic Texan delicacy and made it available from coast to coast.

Headquartered in Katy, Texas, Kolache Factory is privately owned and operated. For more information on Kolache Factory and franchising opportunities, please visit https://kolachefactory.com