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The Honolulu Advertiser
Posted on: Thursday, August 25, 2005

Franchise operator spiffs up Burger Kings

By Andrew Gomes
Advertiser Staff Writer

Burger King executives were on O'ahu yesterday to look at renovations at several locations. At the 'Ewa Beach restaurant, the visitors were greeted by dancers from a Kane'ohe hula halau.

Burger King

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Three years ago, roughly half of Hawai'i Burger King restaurants had no air conditioning. Yesterday, the primary local operator of the franchise declared that its three-year-old turnaround plan is shifting to high gear with more renovations and new stores.

Kazi Foods Inc., a California-based firm that operates Hawai'i KFC restaurants, took on Burger King's flagging Hawai'i business in mid-2002, buying 18 restaurants out of bankruptcy.

After three years of mostly repairs and operational adjustments, Kazi said sales are up about 50 percent and the first of many major renovation and new store projects recently have been completed.

Most of the work to date focused on cleaning up Burger King's image by fixing stores, retaining employees, improving marketing and adding products — changes that increased average annual sales from $960,000 to $1.5 million per store, said Steve Johnson, general manager of Kazi's Hawai'i operations.

Over the last three years, Kazi also reopened four Burger Kings — at King's Village in Waikiki, Pearlridge Center, 'Ewa Beach and Pearl City — that were closed by the previous owner, California-based Cimm's Inc.

The Burger King at 1056 S. Beretania St. recently reopened after renovation. Other renovations are ongoing at restaurants in Wai'anae, Kona on the Big Island and Lihu'e, Kaua'i.

Burger Kings at Mililani Town Center and in Kane'ohe are scheduled for renovation in the next year, with all locations upgraded by 2008.

Kazi expects renovations to cost $150,000 to $750,000 per store, or $3 million to $5 million for all stores.

Johnson said most interiors needed a lot of work. "They were pretty drab, run-down '70s style," he said. "Now they are becoming state-of-the-art."

Johnson said Kazi expects to open new restaurants in Lahaina, Maui, and in Hilo and Waimea on the Big Island in the next six to 18 months.

Ann Striker, vice president of the Burger King Corp. division overseeing Hawai'i, said in a statement that corporate officials are impressed with Kazi's efforts.

Kazi owns 22 of Hawai'i's 28 Burger Kings. Two other franchisees own military base and airport locations.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.