Kahala Brands Explained

Kahala Brands
Type:Subsidiary
Location City:Scottsdale, Arizona
Location Country:United States
Area Served:Global
Industry:Restaurant
Parent:MTY Food Group
(2016–present)
Key People:Eric Lefebvre (CEO)[1]

Kahala Brands is a wholly owned subsidiary of Canada-based MTY Food Group Inc. of Montreal, Quebec. Based in Scottsdale, Arizona, Kahala is one of North America's largest holding company of franchise fast food restaurant companies.[2] In May 2016, the publicly traded Canadian MTY Food Group announced a friendly takeover deal with the Kahala Brands. MTY agreed to pay about US$300 million to acquire Kahala. The two companies generated nearly $2 billion in revenues in the previous year.[3] Jeff Smit was chosen to lead the US operations of MTY.

History

Surf City Squeeze was started in the early 1980s by Kevin Blackwell and his wife Kathi, and later became a franchise.[4] Later, in 1998/1999, Sports Group International, Inc. (a company that was originally formed to distributed Spalding-branded sports drinks) merged with Surf City Squeeze with Surf City Squeeze's management taking over full control of the company. Also in 1999, Sports Group International purchased Frullati Cafe & Bakery Chain, bringing the total number of its franchised locations to 200.[5] [6]

In 2001, Kevin Blackwell changed the name of his company from Sports Group International to Kahala Corp. after terminating an agreement with Spalding.[7] Also in 2000, Kahala Corp. then developed the Rollerz brand.

From 2002 to 2006, Kahala Corp. purchased Ranch One Grilled Chicken,[8] Samurai Sam's Teriyaki Grill,[9] Taco Time, Great Steak, Johnnie's New York Pizzeria, and Blimpie. Kahala also acquired the license to Wafflo.

In 2007, Kahala Corp and Cold Stone Creamery agreed to merge creating a combined company holding 13 diversified brands. The combined company generated more than $1.1 billion in system wide sales in partnership with 3,000-plus franchisees and more than 4,600 retail locations.[10] [11] As a result of the merger, Kahala's CEO Kevin Blackwell and Cold Stone Creamery's CEO and chairman Doug Ducey were respectively appointed chairman and CEO of the new combined company, Kahala-Cold Stone.[12] Ducey left a few months later to join tech start-up iMemories[13] after being forced out by Blackwell.[14]

In July 2007, Kahala-Cold Stone acquired Cereality Cereal Bar & Cafe.[15]

In 2012, Kahala signed a franchising deal with Phoenix-based America's Taco Shop.[16]

In 2013, a controlling interest in Kahala Corp. was purchased by the Serruya family of Canada.[17] The Serruyas own and founded Yogen Früz, a chain with 1400 stores around the world. At that time, Michael Serruya became Chairman and Co-CEO of Kahala Corp. Shortly thereafter, Co-CEO Kevin Blackwell left the company. The Serruya family changed the company name from Kahala Corp to Kahala Brands to better align the focus of the business.

In June 2015, Kahala Brands purchased Planet Smoothie and Tasti D-Lite.[18] This acquisition added 128 new locations to the overall company store count and increased the total of smoothie-focused locations to over 400 worldwide.[19]

Just a few months later in November 2015, Kahala Brands purchased the gourmet coffee and smoothie brand Maui Wowi.[20] [21] At the time of the acquisition, Maui Wowi had with 400 mobile carts and 29 standalone retail units that operated by 200 franchisees. The following month, Kahala acquired Pinkberry in December.[22] [23]

In July 2016, MTY Food Group Inc. of Montreal, Quebec in Canada purchased Kahala Brands for approximately US$310 million. Under the deal, Kahala remained in its headquarters in Scottsdale, Arizona while MTY's US operations was moved into Kahala's offices. Kahala's Chief Operating Officer Jeff Smit was chosen to lead the US operations of the combined entity.[24]

Brands

Notes and References

  1. Web site: MTY Food Group names Eric Lefebvre as new CEO . May 4, 2018 . Verdict Media . October 14, 2019.
  2. News: Kahala Merger Data . https://archive.today/20120710182344/http://findarticles.com/p/articles/mi_m3190/is_21_41/ai_n19171936 . dead . 2012-07-10 . 2007-05-27 . 2008-11-30 . Nation's Restaurant News . Lisa . Jennings . FindArticles.
  3. News: Canadian Press . MTY Foods set to double in size with acquisition of Kahala Brand . . May 25, 2016 . https://web.archive.org/web/20160526175247/http://www.montrealgazette.com/business/foods%2Bdouble%2Bsize%2Bwith%2Bacquisition%2Bkahala%2Bbrand/11941355/story.html . May 26, 2016 . dead .
  4. Book: Dixon . E. . Dixon . T. . Carpenter . L. . The 2004 Franchise Annual: Since 1969-The Original Franchise Handbook and Directory . Info Franchise News Incorporated . 2004 . 978-0-9730132-2-1 . November 16, 2017 . 245.
  5. Web site: Kahala Corp History . 2008-11-30 . 2008-11-30 . . Kahala Corporation . https://web.archive.org/web/20081015164010/http://www.kahalacorp.com/history.php . 2008-10-15 . dead.
  6. News: Sports Group International, Inc. Announces The Acquisition Of Frullati Cafe & Bakery . The Franchise Mall . May 26, 1999 . .
  7. News: Sports Group International Inc. announces name change . . January 22, 2001 . .
  8. News: Franchisor brings Ranch 1 to the Valley . . June 9, 2002 . .
  9. Web site: Cold Stone Creamery's entertainment helps build global business . azcentral . October 1, 2014 . November 16, 2017.
  10. News: Kahala, Cold Stone agree to merge . . May 11, 2007 . .
  11. News: Kahala to merge with Cold Stone . . May 11, 2007 . Stephanie . Paterik.
  12. News: Cold Stone Creamery, Kahala Join Forces . . May 11, 2007 . Lauren . Shepherd.
  13. News: Former Cold Stone CEO joins iMemories . . April 25, 2008 . Jane . Larson.
  14. News: Ducey ousted by Kahala-Cold Stone . . September 18, 2007 . .
  15. News: Kahala-Cold Stone to Acquire Cereality Cereal Bar & Café . QSR Magazine . July 12, 2007 . .
  16. News: America's Taco Shop signs franchise deal with Kahala . . October 19, 2012 . .
  17. News: Canadian investors buy stake in Scottsdale-based Kahala Corp. . . August 21, 2013 . Russ . Wiles.
  18. Web site: Kahala acquires Planet Smoothie and Tasti D-Lite brands . Phoenix Business Journal . June 3, 2015 . November 16, 2017.
  19. Web site: Arizona company buys Planet Smoothie, Tasti D-Lite . . June 4, 2015 . November 16, 2017.
  20. News: Kahala Brands buys Maui Wowi . December 2, 2015 . Jonathan . Maze . November 3, 2015 . Nation's Restaurant News.
  21. News: Kahala Brands buying Denver's Maui Wowi smoothie company . . November 3, 2015 . Alicia . Wallace.
  22. Web site: Anderson . Caroline . Owner of Counter Burger Chain Sold, Will Leave L.A. . Los Angeles Business Journal . November 15, 2017 . November 16, 2017.
  23. Web site: The owner of Cold Stone Creamery Has Bought Pinkberry . Fortune . December 15, 2015 . November 16, 2017.
  24. MTY Completes the Acquisition of Kahala Brands, Ltd. . . July 26, 2016 . . The operations of Kahala will stay in Kahala's current headquarters, located in Scottsdale, Arizona, while MTY's US operations will move into Kahala's offices. Mr. Jeff Smit, Kahala's Chief Operating Officer, will be leading the US operations of the combined entity. .
  25. Web site: America's Taco Shop Shuts Down Central Phoenix Location . KJZZ . October 3, 2014 . November 16, 2017.
  26. Web site: MTY fait une acquisition de 300 M$ . Le Journal de Montréal . May 25, 2016 . fr . November 16, 2017.
  27. Book: Wood . D.J. . Group . Gale . Companies and Their Brands . Gale Research . Gale Trade Names Directory . v. 1-2 . 2007 . 978-0-7876-8965-0 . November 16, 2017 . 1900.
  28. News: Great Steak & Fry Chain Continues to Sizzle Rivals . . August 19, 1992 . 6B . Jennifer . Kent . subscription. Alternate Link via NewsBank
  29. News: Big Sky sold; one store closed . . February 2, 2000 . Lisa Biank . Fasig.
  30. Web site: Big Sky sold; one store closed . Enquirer.Com . February 2, 2000 . November 24, 2017.
  31. News: Great Steak & Potato Co. sold . . April 3, 2004 . Randy . Tucker.
  32. News: Kahala signs 30-restaurant deal with South Korean developer . . December 29, 2004 . .
  33. Web site: Kahala Brands buys Maui Wowi . . November 3, 2015 . November 16, 2017.
  34. Web site: Brands . . Kahala Brands . .
  35. Web site: Friedman . Lindsay . Franchise of the Day: Enjoy This Beachy Franchise That Even Surfer Dudes Love . Entrepreneur . May 25, 2016 . November 16, 2017.
  36. Web site: Quebec fast-food company to buy Scottsdale-based Cold Stone Creamery parent Kahala Brands in $300M sale . Azcentral . May 25, 2016 . November 16, 2017.
  37. Web site: MTY to acquire sweetFrog Premium Frozen Yogurt for $35m . 4 September 2018 .
  38. Web site: About Us . Grabbagreen . October 14, 2019.

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