MTY Group Purchases Planet Smoothie Franchise Parent Company Kahala Brands
The new organization will provide even more support for franchise owners through stronger purchasing power and improved back office operations
Planet Smoothie franchise owners know they have a solid, experienced partner in Kahala Brands. Now, as Kahala Brands becomes part of the MTY Group family thanks to a recent merger with the Canadian-based franchise giant, that partnership is only going to deepen.
“We are excited to merge our family of well-known, successful brands such as the Planet Smoothie franchise with what MTY is bringing to the table,” says John Wuycheck, Senior Vice President of Franchise Development. “As an even larger company, we will be able to negotiate better deals for good and services, which will benefit our franchise owners. And we are remaining in our Scottsdale headquarters, and so our day-to-day interactions with them will remain the same.”
Kahala Brand’s successful growth caught MTY’s attention
When Kahala Brands purchased the Planet Smoothie franchise brand, it gained a strong position in the competitive, highly profitable U.S. smoothie market. At the same time, its other successful brands like Cold Stone Creamery, TacoTime, Pinkberry and Great Steak also continued to be solid performers. That made Kahala Brands very appetizing, John says.
“We have a wonderful portfolio of brands, and MTY does, as well,” he explains. “What this merger does is allow each side to benefit from what the other is operating. MTY has been looking for the right partner in the United States, and Kahala’s great brands, such as Planet Smoothie, fit the bill.”
Joint entity will leverage opportunities for franchise growth
The $300 million transaction will help Kahala Brands enter new markets for Planet Smoothie franchise operations more quickly. In fact, aggressive growth is one of the major benefits of the merger.
“MTY wants to bring some of its brands into the United States, and we’re poised to help them do that,” John says. “At the same time, we want to continue building on the solid foundation we’ve put in place for franchise growth. In the case of Planet Smoothie, that means building out in areas like Atlanta and Orlando, where we have area developer partners and have seen great success. That also means entering new territories, something that MTY is very accomplished at doing in Canadian markets. We will all learn a great deal from each other, and that will help our franchise owners tremendously.”
The new company will have 5,500 stores, and 57 brands, making it not just a North American powerhouse but also a global major player.
“We are combining the best of both companies in so many ways,” John says. “Both Kahala Brands and MTY know how to operate successful franchises. We both know how to recruit smart, hardworking entrepreneurs to become franchise owners. Now we can grow more rapidly than we could as separate entities, and that is good news for anyone who is looking at owning a Planet Smoothie franchise.”
Planet Smoothie is a smoothie franchise that sets itself apart by offering great-tasting smoothies that use healthier, natural ingredients. In a side-by-side comparison, our smoothies generally have less sugar and fewer calories — a big competitive advantage as Americans actively seek out healthier options. Planet Smoothie is led by a veteran franchise team and dedicated brand support team as part of the Kahala Brands family.