News

Cold Stone Creamery's parent company acquired by Canadian family

August 21, 2013

The Serruya family today announced that it has acquired a controlling interest in Kahala Corp., franchisor of numerous quick service brands including Cold Stone Creamery, Blimpie and Taco Time.

The transaction was completed on Aug. 19.

The Serruya family has a history of franchising and is planning for growth of Kahala brands in both international and North American markets.

"We are extremely pleased to become major shareholders of this outstanding company. We look forward to using the experience and skillsets that we've obtained over the last 26 years in this industry, as owners and management of numerous quick-service restaurant brands, to work closely with the entire Kahala team to enhance and strengthen the franchise business model," said Michael Serruya, the new chairman and co-CEO of Kahala.

He will now share CEO duties with Kevin Blackwell, founder of Kahala. Blackwell and Serruya have known each other for more than 20 years, according to a news release.

"It is without doubt that Michael's expertise and experience in the franchising world will have a positive impact on Kahala and its future, and I know that Michael will be a tremendous asset to Kahala. The financial strength of the company has been significantly enhanced as a result of this transaction. It positions Kahala as an industry leader and will allow us to grow our portfolio by acquiring or partnering with other world class brands," Blackwell said.

The acquisition was made at an auction, according to The Globe and Mail. The Markham, Ontario-based Serruya family "turned CoolBrands International Inc. (parent of Yogen Fruz) into one of North America's largest ice-cream producers — before its fortunes collapsed and shareholders lost much of their investment," according to the story. CoolBrands began liquidating its assets in 2006. Since, the family has been rebuilding the Yogen Fruz concept as a private company, and has also launched Yogurty's.

The investors, the story says, are "hoping to breathe new life into some of the brands owned by Kahala, while also introducing some of the franchises into Canada." Plans include the expansion of Cold Stone in that market, and doubling the co-branded Tim Hortons/Cold Stone locations.

There are now about 260 co-branded Tim Hortons/Cold Stone locations, including about 150 in Canada and 110 in the U.S.

Scottsdale, Ariz.-based Kahala Corp.'s QSR portfolio includes: Cold Stone Creamery; Blimpie; Taco Time; Samurai Sam's Teriyaki Grill; The Great Steak & Potato Company; NrGize Lifestyle Café; Surf City Squeeze; Johnnie's New York Pizzeria; Frullati Café & Bakery; Rollerz; Ranch One; and America's Taco Shop.

The company's brands are available in more than 23 countries with more than 3,035 franchised and corporate store locations. Kahala's total systemwide revenues are approximately $1 billion dollars.

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