Koo Koo Roo

Koo Koo Roo was an American fast casual restaurant chain specializing in charbroiled chicken founded in 1988 by Los Angeles-based restaurateurs Mike and Ray Badalian. The name "Koo Koo Roo" was an onomatopoeic reference to the crow of a rooster.[1] After a series of expansions and ownership changes, in which Koo Koo Roo struggled for profitability throughout the 1990s, the last location in Santa Monica, California closed in 2014, which was replaced with a Fuddruckers which closed in January 2019 under the ownership of Luby's Restaurants, Inc. who still owns the Koo Koo Roo trademark.[2]

Koo Koo Roo
TypeSubsidiary
IndustryRestaurants
FateClosed by parent
Founded1988 (1988) in Los Angeles, California
FoundersMike and Ray Badalian
Defunct2014 (2014)
HeadquartersLos Angeles, California, US
Houston, Texas, US
Area served
California, Florida, Nevada, New Jersey
ParentMagic Brands (2003–2010)
Luby's (2010–2014)
WebsiteLast archived of official website (2014)

History

The Badalian brothers originally ran two locations in Los Angeles, one in Koreatown, and the other on Beverly Boulevard close to the Beverly Center. The brothers opened their first restaurant in 1988 on west Sixth Street near Normandie Avenue in Los Angeles. The restaurant served skinless chicken that was marinated in vegetable juices and char-broiled over open flames and served with a fold-able Middle Eastern inspired flatbread that they called "Koo Koo Roo bread." The only sides available were a Middle Eastern cucumber and onion salad, an eggplant salad, and a mixture of pinto and Northern beans. The only dessert initially available was frozen yogurt. Everything on the initial menu had relative low calories when compared to offerings at other chicken restaurants.[3]

On the evening of March 26, 1990, Kenneth Berg, a retired real estate broker from New York, stopped at the Beverly Blvd. location to get dinner, particularly a meal for him to take home while he watched the 62nd Academy Awards. Impressed by the quality of the food, Berg met with the Badalians and later invested $2,500,000 as a silent partner, eventually investing more and taking control of the restaurant. The following year, the company became public with its stock being traded on NASDAQ under the stock ticker KKRO.[4]

The company had 15 locations in February 1992.[1] Two years later, the number of locations had dropped to 8.[5]

In a bid to diversify the company, Koo Koo Roo launched a coffee bar chain called Arrosto Coffee Co. and acquired a color-your-own-ceramics chain called Color Me Mine in 1996.[6] The following year, Koo Koo Roo acquired the bankrupted 14 outlets Hamburger Hamlet chain for $11.5 million.[7]

After suffering financial problems during the previous three years, the company was acquired by Family Restaurants Inc., the owner of Chi-Chi's and El Torito Mexican restaurants, in 1998 for $143 million in stock.[8] At the time of the announcement, Koo Koo Roo had 38 locations in California, Florida, and Nevada. Before the acquisition was completed, Koo Koo Roo sold off its Arrosto Coffee Co. and Color Me Mine chains.[9][10]

Immediate after Family Restaurants completed the acquisition of the Koo Koo Roo and Hamburger Hamlet chains, Family Restaurants Inc. renamed itself Koo Koo Roo Enterprises and then Prandium Inc. a few months later. Prandium was the parent company for the Koo Koo Roo, El Torito, Chi-Chi's and Hamburger Hamlet chains.[11]

By January 1999, Koo Koo Roo had 40 locations.[6]

In 2003, the Prandium subsidiaries Koo Koo Roo, Chi-Chi's, and Hamburger Hamlet, filed for Chapter 11 bankruptcy protection. At the time of the filing, Koo Koo Roo had 28 locations, down from 38 in 2001.[12] As the result of the filing, the company was acquired by Magic Brands. Three years later, the number of locations dropped to 13 before Magic Brands closed an additional 10 locations.[13] Luby's acquired Koo Koo Roo and its remaining 3 locations in 2010 after parent Magic Brands filed for bankruptcy.[14]

See also

References
  1. Horovitz, Bruce (February 2, 1992). "In a Recession, Will New Fast-Food Chicken Chain Get Skinned Alive? : Franchises: Koo Koo Roo has plans to expand aggressively. But some experts say the timing couldn't be worse". Los Angeles Times. Retrieved January 24, 2017.
  2. Evanier, Mark (October 22, 2014). "Koo Koo Roo". Old L.A. Restaurants (blog). Retrieved January 24, 2017.
  3. Dosti, Rose (August 25, 1988). "Koo Koo Roo: Something to Crow About". Los Angeles Times.
  4. "Koo Koo Roo, Inc. History". Funding Universe. Retrieved January 24, 2017.
  5. Petruno, Tom (August 26, 1994). "Leg Room for 1 More Chicken Chain? Milken Trust Thinks So". Los Angeles Times.
  6. Vrana, Debora & Petruno, Tom (January 29, 1998). "Koo Koo Roo Shares Plummet". Los Angeles Times.
  7. Peltz, James F. (March 7, 1997). "Koo Koo Roo Plans to Take 14 Hamlets Under Its Wing". Los Angeles Times.
  8. "Family Restaurants to Acquire Iacocca's Koo Koo Roo". New York Times. June 11, 1998.
  9. "Koo Koo Roo: Add salsa". CNN. June 10, 1998.
  10. Gregory, Stephen (August 26, 1998). "Koo Koo Roo Sells Color Me Mine Stores". Los Angeles Times.
  11. Hernandez, Greg (April 17, 1999). "Koo Koo Roo Enterprises Becomes Prandium Inc". Los Angeles Times.
  12. Robinson-Jacobs, Karen (October 9, 2003). "Chi-Chi's, Koo Koo Roo Enter Bankruptcy Court". Los Angeles Times.
  13. Bernstein, Sharon (April 29, 2010). "Koo Koo Roo to close 10 stores in state". Los Angeles Times.
  14. "Luby's cafeteria to buy Fuddruckers and Koo Koo Roo for $61 million". Los Angeles Times. June 18, 2010.

Archive of official website

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