Hawaii’s KFC owner closes
deal for 20 Burger Kings

The additional fast-food outlets
will increase Kazi Foods'
restaurants in the state to 47

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By Lyn Danninger
ldanninger@starbulletin.com

Kazi Foods Inc., the local operator of KFC restaurants, said yesterday it has purchased 20 Burger Kings in Hawaii from Cimms Inc.

Cimm's, which bought the Hawaii Burger King operations in 1995 from a Japanese owner, filed for Chapter 11 bankruptcy protection in July.

No final purchase price was disclosed by the company, which is headed by California-based Zubair M. Kazi. However Kazi initially offered to pay $2.6 million for the Hawaii Burger King franchises.

"The purchase price could be a little more than that. We just don't know yet," Kazi said.

Kazi said the purchase will not include the assumption of any of Cimm's approximate $75 million in secured debts and more than $20 million in unsecured debts.

"We want to start with a clean slate ," Kazi said.

The Burger King purchase will give Kazi a total of 47 restaurants in Hawaii. The company already operates 27 KFC restaurants here and is the second largest KFC franchisee in the nation, with annual sales exceeding $150 million.

Kazi Food's Chief Executive Officer Chris Scanlan said the purchase agreement includes upgrading current Burger King restaurants and eventually adding 10 to 15 new locations. The company anticipates spending $3 million to $5 million on renovations.

Three Burger King restaurants closed due to the bankruptcy, including Waikiki Burger King on Kalakaua Ave. But Kazi's long-range plans call for new restaurants in Waikiki, as well as Ewa Beach. Other future sites have yet to be determined.

Kazi said existing Burger King employees will be retained and the number of jobs available will increase as the company grows. The company now employs around 500 people at Burger King franchises locally and has another 650 employees at its KFC outlets here.

In addition to its KFC locations in Hawaii and eight mainland states, Kazi recently opened a KFC restaurant in Suva, Fiji. KFC restaurants are under construction in the South Pacific in American and Western Samoa, and Tonga, Kazi said.

Kazi first came to the United States from India in 1969. He joined KFC as a cook. His first purchase of a KFC restaurant was in 1976 in Studio City, Calif.