Kahala Brands
Kahala Brands is a Scottsdale-based multi-brand franchising company and wholly owned United States subsidiary of Canada's MTY Food Group.
Last updated August 31, 2026
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Overview
Kahala Brands is a multi-brand restaurant franchising and holding company headquartered in Scottsdale, Arizona. Rather than operating as a single consumer-facing restaurant concept, it has historically assembled, developed, franchised, and supported a broad portfolio of quick-service and fast-casual brands. Its portfolio has covered smoothies, frozen desserts, coffee, sandwiches, pizza, Mexican-inspired food, grilled chicken, teriyaki, cereal, and other convenience-oriented restaurant formats. The business developed from Surf City Squeeze, a smoothie concept founded by Kevin Blackwell and Kathi Blackwell in the early 1980s. Surf City Squeeze later became a franchise system and formed the basis for a wider restaurant-company platform. In the late 1990s, Sports Group International, a company originally associated with the distribution of Spalding-branded sports drinks, merged with Surf City Squeeze. The combined business also acquired Frullati Cafe & Bakery in 1999, expanding its franchised-store base to approximately 200 locations. In 2001, after ending its relationship with Spalding, the company changed its name from Sports Group International to Kahala Corp. During the following years it pursued an acquisition-led strategy, adding brands such as Rollerz, Ranch One Grilled Chicken, Samurai Sam's Teriyaki Grill, Taco Time, Great Steak, Johnnie's New York Pizzeria, and Blimpie. The portfolio approach allowed the company to offer prospective franchisees several restaurant formats and gave it exposure to different dayparts, cuisines, price points, and site types. A major expansion of the platform took place in 2007, when Kahala Corp. agreed to merge with Cold Stone Creamery. The resulting Kahala-Cold Stone organization controlled a diversified collection of restaurant brands and was reported to have more than 3,000 franchisees and over 4,600 retail locations, with systemwide sales exceeding $1.1 billion. The combination also brought governance changes: Kevin Blackwell became chairman, while Cold Stone executive Doug Ducey became chief executive officer. The arrangement was followed by management changes and the acquisition of Cereality Cereal Bar & Cafe. Kahala continued to expand through franchising and portfolio transactions. It signed a franchising agreement with Phoenix-based America's Taco Shop in 2012. In 2013, the Serruya family of Canada acquired a controlling interest in Kahala Corp. Michael Serruya became chairman and co-chief executive officer, while Kevin Blackwell subsequently departed. The company was renamed Kahala Brands, a name intended to better express its focus on managing and growing restaurant brands. The company added several beverage and dessert concepts in 2015. Planet Smoothie and Tasti D-Lite were acquired in June, followed by Maui Wowi in November and Pinkberry in December. These transactions strengthened Kahala's position in smoothies, coffee, frozen yogurt, and other frozen or blended products. The Maui Wowi transaction brought a particularly flexible format combining mobile carts with standalone stores and a large franchisee network. In 2016, Kahala Brands was acquired by MTY Food Group of Montreal, Quebec, in a transaction reported at approximately US$300 million to US$310 million. Kahala became a wholly owned subsidiary, while its Scottsdale headquarters remained an important base for MTY's United States operations. Jeff Smit, previously Kahala's chief operating officer, was selected to lead the combined company's United States operations. Since the acquisition, Kahala has functioned primarily as part of MTY's broader multi-brand restaurant portfolio rather than as an independently listed company.
History
Kahala Brands traces its roots to Surf City Squeeze, a smoothie business established by Kevin and Kathi Blackwell in the early 1980s. The concept developed into a franchise operation, creating the foundation for a larger restaurant-brand company. In the late 1990s, Sports Group International merged with Surf City Squeeze. Sports Group International had originally been formed in connection with the distribution of Spalding-branded sports drinks, but the merged company's future increasingly centered on franchised food and beverage concepts. In 1999 it acquired Frullati Cafe & Bakery, bringing the reported franchise total to roughly 200 locations. The company adopted the name Kahala Corp. in 2001 after ending its agreement with Spalding. It then pursued a deliberate multi-brand acquisition strategy. Rollerz was developed around 2000, and between 2002 and 2006 Kahala added Ranch One Grilled Chicken, Samurai Sam's Teriyaki Grill, Taco Time, Great Steak, Johnnie's New York Pizzeria, and Blimpie. It also obtained rights connected with the Wafflo concept. These transactions broadened the platform beyond smoothies into sandwiches, pizza, grilled chicken, teriyaki, and other quick-service categories. In 2007, Kahala Corp. agreed to merge with Cold Stone Creamery. The resulting Kahala-Cold Stone organization was described as holding 13 diversified brands, with more than 3,000 franchisees and over 4,600 retail locations. Reported systemwide sales exceeded $1.1 billion. Kevin Blackwell and Doug Ducey were appointed chairman and chief executive officer respectively, although Ducey left the organization several months later. Kahala-Cold Stone also acquired Cereality Cereal Bar & Cafe in July 2007. Kahala continued to use franchising and selective acquisitions to expand. In 2012, it signed a franchising agreement with America's Taco Shop. The following year, the Serruya family acquired a controlling interest. Michael Serruya, associated with the Yogen Früz business, became chairman and co-chief executive officer. Kevin Blackwell later left, and the company changed its name from Kahala Corp. to Kahala Brands to emphasize its role as a house of restaurant brands. The 2015 acquisition cycle concentrated on beverages and frozen desserts. Planet Smoothie and Tasti D-Lite were purchased in June. Maui Wowi Hawaiian followed in November, adding a network built around smoothies, coffee, mobile carts, and standalone stores. Pinkberry was acquired in December, giving Kahala another internationally recognized frozen-dessert concept. MTY Food Group announced a friendly acquisition of Kahala Brands in May 2016 and completed the purchase in July. The reported consideration was approximately US$300 million to US$310 million. Kahala remained headquartered in Scottsdale, while MTY consolidated its United States activities from Kahala's offices. Jeff Smit, formerly Kahala's chief operating officer, was selected to lead MTY's American operations. The acquisition placed Kahala within MTY's larger portfolio of franchised restaurant concepts and ended its period as an independently controlled restaurant holding company.
- 2016
MTY Food Group acquires Kahala Brands
[1]Kahala becomes a wholly owned subsidiary of MTY Food Group, with Scottsdale retained as the base of MTY's United States operations.
- 2015
Kahala expands its smoothie and dessert portfolio
[1]Kahala acquires Planet Smoothie, Tasti D-Lite, Maui Wowi Hawaiian, and Pinkberry.
- 2013
Serruya family takes control
[1]The Serruya family purchases a controlling interest, after which Kahala Corp. is renamed Kahala Brands.
- 2007
Kahala and Cold Stone Creamery merge
[1]The merger creates the Kahala-Cold Stone restaurant platform and significantly increases its franchise and location base.
- 2001
Company becomes Kahala Corp.
[1]Following the termination of its Spalding agreement, the company changes its name from Sports Group International to Kahala Corp.
- 1999
Frullati Cafe & Bakery is acquired
[1]Sports Group International purchases Frullati Cafe & Bakery, expanding the franchise network.
- 1998
Sports Group International merges with Surf City Squeeze
[1]Sports Group International and Surf City Squeeze combine, with Surf City Squeeze management taking control of the merged business.
- 1980
Surf City Squeeze is established
[1]Kevin and Kathi Blackwell establish Surf City Squeeze, the smoothie concept that later becomes the foundation of the Kahala platform.
Products and positioning
A multi-brand franchising platform focused on scalable quick-service and fast-casual restaurant concepts. Kahala's historical positioning has emphasized portfolio breadth, franchise development, international licensing, and flexible formats ranging from conventional restaurants to kiosks, carts, and nontraditional venues.
Ice cream and frozen desserts
Cold Stone Creamery
A made-to-order ice cream and dessert restaurant concept. Cold Stone Creamery became the central partner in Kahala's 2007 merger and gave the combined company a major international frozen-dessert platform spanning traditional stores and franchise markets.
Frozen yogurt
Pinkberry
A frozen-yogurt restaurant brand known for tart-style frozen yogurt and customizable toppings. Kahala acquired Pinkberry in December 2015, adding a high-profile international dessert concept to its expanding smoothie and frozen-food portfolio.
Submarine sandwiches
Blimpie
An American submarine-sandwich chain offering deli-style sandwiches and related quick-service items. Kahala acquired the brand during its early-2000s acquisition program, and the concept has operated in the United States and selected international markets.
Smoothies and beverages
Planet Smoothie
A smoothie-focused restaurant concept offering blended fruit and other beverage products. Acquired by Kahala in 2015, Planet Smoothie reinforced the company's concentration in beverage-led franchising and contributed locations across numerous United States states.
Smoothies and coffee
Maui Wowi Hawaiian
A Hawaiian-themed beverage franchise offering smoothies, coffee, and related products through both mobile carts and conventional retail units. Kahala's 2015 acquisition added a flexible format suitable for shopping centers, events, kiosks, and other nontraditional venues.
Smoothies · 1980
Surf City Squeeze
The foundational Kahala concept, Surf City Squeeze is a smoothie chain created in the early 1980s. Its development as a franchise business established the operating and brand-management base from which Kahala expanded into a multi-concept restaurant company.
Fast-casual Tex-Mex
Baja Fresh
A fast-casual Mexican-inspired restaurant concept operating in the United States and selected international markets. The brand is associated with made-to-order Tex-Mex meals and forms part of the broader portfolio of franchised restaurant concepts linked with Kahala and MTY.
Quick-service Mexican food
Taco Time
A quick-service Mexican food chain serving items such as tacos and related menu offerings. Kahala acquired Taco Time during its 2002–2006 expansion period, while certain western Washington locations remained associated with the separate Taco Time Northwest operation.
Frozen desserts
Tasti D-Lite
A New York-originated frozen-dessert and fast-food concept. Its acquisition in 2015 complemented Kahala's growing collection of smoothie, frozen-yogurt, ice-cream, and other dessert brands.
Steak and sandwich restaurants · 1982
Great Steak
A restaurant concept formerly known as Great Steak & Potato Company. It specializes in steak-based sandwiches and related quick-service meals and was acquired by Kahala in 2004, with operations reported in the United States, Canada, Mexico, and Kuwait.
Brand decisions
2016
Sell Kahala Brands to MTY Food GroupM&ABackground
MTY Food Group pursued the acquisition to expand its North American restaurant portfolio and strengthen its United States operating base.
Action taken
MTY acquired Kahala Brands in a friendly transaction reported at approximately US$300 million to US$310 million.
Aftermath
Kahala became a wholly owned MTY subsidiary. Its Scottsdale headquarters remained in place, and Jeff Smit was selected to lead MTY's United States operations.
Reported acquisition consideration. Approximately US$300 million to US$310 million (2016 acquisition)
2015
Build a larger smoothie and dessert portfolioM&ABackground
Kahala was increasing its exposure to beverage and frozen-dessert categories, which offered multiple store formats and international franchising opportunities.
Action taken
The company acquired Planet Smoothie and Tasti D-Lite in June, Maui Wowi Hawaiian in November, and Pinkberry in December.
Aftermath
The transactions expanded the company's smoothie, coffee, frozen-yogurt, and frozen-dessert holdings and added a substantial number of locations and franchise relationships.
2013
Rebrand as Kahala BrandsStrategyBackground
After the Serruya family acquired a controlling interest, the corporate name was considered less reflective of the company's role as a manager and franchisor of multiple restaurant concepts.
Action taken
Kahala Corp. was renamed Kahala Brands.
Aftermath
The new identity emphasized brand portfolio management and followed leadership changes involving Michael Serruya and Kevin Blackwell.
2007
Merge with Cold Stone CreameryM&ABackground
Kahala sought to enlarge and diversify its franchised restaurant platform, while Cold Stone Creamery brought a substantial international ice-cream business.
Action taken
The companies agreed to combine under the Kahala-Cold Stone organization.
Aftermath
The combined platform was reported to encompass 13 brands, more than 3,000 franchisees, and over 4,600 retail locations. Executive responsibilities changed soon afterward when Doug Ducey left.
2001
Rename the company as Kahala Corp.StrategyBackground
The company ended an agreement connected with Spalding-branded sports drinks and needed a corporate identity better suited to its expanding restaurant portfolio.
Action taken
Sports Group International changed its corporate name to Kahala Corp.
Aftermath
The renamed company continued an acquisition-led and franchise-oriented expansion across multiple restaurant categories.
Recent events
- 2016
MTY Food Group acquires Kahala Brands[1]
M&A · Leadership change
MTY Food Group acquired Kahala Brands in a transaction reported at approximately US$300 million to US$310 million. Kahala remained based in Scottsdale and became part of MTY's United States operations.
- 2015
Kahala Brands acquires Planet Smoothie and Tasti D-Lite[1]
M&A
The June transaction expanded Kahala's smoothie and frozen-dessert portfolio and added 128 locations according to the reference account.
- 2015
Kahala Brands acquires Maui Wowi Hawaiian[1]
M&A
The acquisition added a beverage and smoothie franchise system comprising mobile carts and standalone retail units operated by franchisees.
- 2015
Kahala Brands acquires Pinkberry[1]
M&A
Kahala acquired Pinkberry in December, strengthening its international frozen-yogurt and dessert portfolio.
- 2013
Serruya family acquires controlling interest in Kahala[1]
M&A · Leadership change
The Canadian Serruya family purchased a controlling interest in Kahala Corp. Michael Serruya became chairman and co-chief executive officer, and the company subsequently adopted the Kahala Brands name.
- 2012
Kahala signs franchising agreement with America's Taco Shop[1]
Other
Kahala added a Phoenix-based taco concept through a franchising agreement, extending its Mexican-food portfolio.
- 2007
Kahala Corp. and Cold Stone Creamery agree to merge[1]
M&A
The merger created a diversified restaurant company combining Kahala's portfolio with Cold Stone Creamery and was reported to represent more than 3,000 franchisees and over 4,600 retail locations.
- 2007
Kahala-Cold Stone acquires Cereality[1]
M&A
The combined company acquired Cereality Cereal Bar & Cafe, adding a specialized cereal-and-café concept to its restaurant portfolio.
Sources1 sources
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