Burger King franchise buys 20 restaurants

By Andrew Gomes
Advertiser Staff Writer

The new owner of Hawai'i's Burger King franchise announced yesterday it has bought 20 restaurants here, and signed a development agreement with Burger King Corp. that could add 10 to 15 locations to the burger chain locally.

California-based Kazi Foods Inc., which operates 27 KFC restaurants in Hawai'i, acquired the Burger King restaurants from another California company, Cimm's Inc., which sold the eateries as part of a Chapter 11 bankruptcy reorganization.

Kazi Foods said it expects to spend $3 million to $5 million to remodel the Burger King restaurants, and will also invest in local advertising for the brand.

"We believe that our new investment in the Islands will prove prosperous," said company owner Zubair Kazi. "With our proven franchise expertise and plans for expansion, we will work to provide more (Burger King) access for Hawai'i."

Kazi Foods had an option to buy 14 to 20 Hawai'i Burger King restaurants, and initially anticipated buying 16, before deciding on the full 20. Three Hawai'i Burger King restaurants not included in the deal were closed by Cimm's, including the Waikiki store at Kalakaua Avenue and Lewers Street.

Kazi Foods is the nation's second-largest KFC franchisee, with annual sales of more than $150 million.

Reach Andrew Gomes at 525-8065 or agomes@honoluluadvertiser.com.