KAHALA 7/24/08 11:56 AM Page 24
kahala corp
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Kahala’s portfolio contains 12 distinct quick-service restaurant con-
cepts that run the gamut from Mexican to Japanese to even break-
fast cereal. Cold Stone Creamery – the third-largest ice cream chain –
is one of its most nationally recognized brands.
making sure that its considerable
resources are put to use for the fran-
chisees. “As Kahala grows, we capitalize
on new channels of distribution, new
products and new services that support
franchisee success across all brands,”
Blackwell says. “With a complete and
diverse portfolio of franchising concepts,
each franchisee receives the benefits of
strong research and development capac-
ity, purchasing power, real estate lever-
age and marketing resources. It’s our No.
1 goal that all franchisees enjoy the suc-
cess of entrepreneurship.”
Kahala Franchise Corp President Chris
Prasifka is responsible for developing the
various brands under the Kahala umbrel-
la, and says the company believes the
best way to promote growth with multiple
24 food and drink • fall 2008 • www.fooddrink-magazine.com
concepts is to make sure each one
remains distinct.
“Day-to-day, our top priority is
franchisee success and brand-
building,” he says. “We invest
heavily in the brand support
structure to protect the
integrity and passion of
the brands, while finding
the best ways to dedicate
resources to support fran-
chisee success. This is
relatively unique to multi-
concept franchise companies
and we are proud to operate
in this manner. We will not put
cost savings ahead of brand
integrity and brand culture.”
Kahala’s portfolio contains 12
distinct quick-service restaurant
concepts that run the gamut
from Mexican to Japanese to
even breakfast cereal. Along with
nationally recognized brands
such as Cold Stone Creamery,
Great Steak & Potato and Blimpie,
Kahala also owns growing brands
Samurai Sam’s Teriyaki Grill,
Cereality Cereal Bar & Café, Frullati Café
& Bakery, Johnnie’s NY Pizzeria, Nrgize
Lifestyle Café, Ranch 1, Rollerz, Surf City
Squeeze and Taco Time.
Blackwell and his wife, Kathryn, start-
ed their first concept, Surf City Squeeze,
with a smoothie and juice bar in the
1980s. The last few years have been
marked by significant expansion for
Kahala, as it acquired Blimpie – the
nation’s third-largest sub-sandwich chain
– in 2006, and Cold Stone Creamery – the
third-largest ice cream store in the coun-
try – in 2007.
Distinct Identities
When dealing with brands as diverse
as the ones in Kahala’s care, it doesn’t
make sense to deal with all the concepts
the same way, Blackwell says. It’s com-
mon sense that a juice bar requires a
different approach than a pizzeria, he
says. Furthermore, brand identity is a
large part of what makes the Kahala
concepts successful.
“We’ve learned over the years that if
you try to have multiple brands serviced
by the same people, the brand can lose
its unique identity,” Blackwell says.
Each brand has its own president, as
well as its own sales, marketing and oper-
ations teams. Where Kahala benefits
each brand as a parent company is in the
back of the house, Blackwell says.
“Kahala invests the money to have
these brand structures and, instead,
we achieve our costs savings by
bundling the back-end of the house,” he
says. “The entire franchise community
benefits from a shared purchasing team
for economies of scale, as well as
shared legal, finance, IT and human
resources teams to name a few.”
Cold Stone Creamery President Dan
Beem says the Kahala approach has
proven to be a comfortable fit for his
operation. “Because of our silo brand
structure, our Cold Stone team has the
best of both worlds,” he says. “We have
the independence to run our business in a
way that’s best for our franchisees, yet we
have the support and resources of a larg-
er entity. Both Kahala and Cold Stone
Creamery had strengths that comple-
mented each other and both companies
brought a lot of talent to the table.”
Prasifka says that even though the
PEPSICO congratulates Kevin Blackwell and Kahala
on their remarkable achievements over the past 20
years. Kahala’s exciting growth is testament to
Blackwell’s entrepreneurial agility, strategic vision
and dedication to the communities served. PepsiCo
is also driven by a deep sense of purpose, commit-
ted to financial success, while leaving a positive
imprint on society. PepsiCo now offers a wider range
of healthier Frito-Lay snacks such as Stacy’s® Pita
Chips, Baked Lays®, and SunChips®. PepsiCo is
impacting the environment in positive ways, using
solar panels to generate electricity at its Frito-Lay dis-
tribution center in Phoenix and its SunChips plant in
Modesto, Calif. Together, Kahala and PepsiCo are
one powerful partnership.
DIETZ & WATSON FOOD SERVICE DIVISION is
proud to salute Kahala Corp. on the occasion of its
20th anniversary. Dietz & Watson furnishes the
finest minimally processed roast beefs, hams and
turkey breasts for the finest subs. It prepares its
meats using natural spices and seasonings, then
oven-roast or cure to perfection. Its meats are low in
fat, have no trans fat, are lower in sodium and are
gluten-free. Dietz & Watson takes pride in prepar-
ing deli meats that are good and “good for you.”