Type Subsidiary Area served Global Founder Kevin Blackwell Parent organization MTY Food Group | Industry Restaurant Website www.kahalamgmt.com Founded 1998 | |
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Key people Jeff Smit (COO of Kahala)
Stanley Ma (CEO of MTY) Headquarters Scottsdale, Arizona, United States Subsidiaries Cold Stone Creamery, Blimpie, Taco Time, Pinkberry Profiles | ||
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. 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 near $2 billion in revenues in the previous year. Jeff Smit was chosen to lead the US operations of MTY.
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History
Surf City Squeeze was started in the early 1980s by Kevin Blackwell and his wife Kathi. Later, in 1998/1999, Sports Group International, Inc. (a company that was originally formed to distributed Spaulding-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.
In 2001, Kevin Blackwell changed the name of his company from Sports Group International to Kahala Corp. after terminating an agreement with Spaulding. Also in 2000, Kahala Corp. then developed the Rollerz brand.
From 2002 to 2006, Kahala Corp. purchased Ranch One Grilled Chicken, Samarai Sam's Teriyaki Grill, 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. As a result of the merger, Kahala's CEO Kevin Blackwell and Cold Stone Creamery's CEO and chairman Doug Ducey were respectively appoint chairman and CEO of the new combined company, Kahala-Cold Stone. Ducey left a few months later to join tech start-up iMemories after being forced out by Blackwell.
In July 2007, Kahala-Cold Stone acquired Cereality Cereal Bar & Cafe.
In 2012, Kahala signed a franchising deal with Phoenix-based America’s Taco Shop.
In 2013, a controlling interest in Kahala Corp. was purchased by the Serruya Family of Canada. The Serruyas own and founded Yogen Fruz, 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. Today, the Serruya family has 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. This acquisition added 128 new locations to the overall company store count and increased the total of smoothie-focused locations to over 400 worldwide.
Just a few month later in November 2015, Kahala Brands purchased the gourmet coffee and smoothie brand Maui Wowi. 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.
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 move into Kahala's offices. Kahala's Chief Operating Officer Jeff Smit was chosen to lead the US operations of the combined entity.