Koo Koo Roo is staging a comeback.
The fast-casual chicken chain that was born in Los Angeles in 1988 is relaunching in its hometown with a new owner, who feels the healthful concept that was once part of a “home-meal replacement” trend will appeal to today’s consumers.
Those in the industry will likely recall that Koo Koo Roo has had a long journey as a business with many owners, and a couple bankruptcies. Most recently, Koo Koo Roo was owned by Luby’s Restaurants, which liquidated in 2020, but not before selling the intellectual property rights of Koo Koo Roo to an independent third party, who at the time was not disclosed.
That buyer was Daniel Farasat, managing partner of real estate development firm Tiger West Capital LLC in Los Angeles. He has now set up Koo Koo Roo as a separate entity, and serves as CEO.
“I’m a lifelong Koo Koo Roo superfan, and when I saw that Luby’s was liquidating and they owned the brand, I just knew deep down inside that there was a strong fan base that still loved Koo Koo Roo, and there would be an opportunity to bring it back,” he said.
He wasn’t wrong about the fan base.
Though the brand has only begun to start promoting the return on social media, comments already indicate Angelinos are eager to see the return of the skinless charbroiled chicken, as well as the macaroni and cheese and creamed spinach, among other dishes.
Farasat, however, has not run a restaurant before. So he said he’s building a team of experienced operators to recreate the concept. And he is being advised by some former alumni of the brand from early years—though not industry veteran Bill Allen, who was once CEO. Farasat said he’s not ready to disclose who will be on the team.
Koo Koo Roo will make its debut first as a popup that will be part of ChainFest in October, an event created by fine-dining chef Tim Hollingsworth and others to celebrate chain restaurant fare.
Next year, a brick-and-mortar Koo Koo Roo is scheduled to open, though, again, he can’t yet disclose where in Los Angeles it will be. In the interim, Koo Koo Roo will stage a comeback tour with popups and other collaborations to get ready for the opening and get feedback from fans about the menu.
According to KCRW, which broke the news, Koo Koo Roo was originally founded by brothers Mike and Ray Badalian. It was created to be a healthier alternative to fast food, offering marinated skinless chicken that was grilled, not fried.
The concept took off and expanded, later being acquired by banker Kenneth Berg. The chain went public in 1991, trading under the symbol KKRO.
Five years later, the company sought to diversify by acquiring the Arrosto Coffee Co. chain, as well as the pottery-painting franchise Color Me Mine. Later, the company also bought the LA-based Hamburger Hamlet chain out of bankruptcy.
In 1998, however, Berg was replaced as chair by famed auto executive and turnaround specialist Lee Iacocca, who had been on the board for several years. At that point, the chain had 52 restaurants in three states and Washington, D.C., but Iacocca and then-CEO Allen announced a restructuring that closed three units and sold off the non-chicken ventures.
A few months later, Koo Koo Roo merged with Family Restaurants Inc., which then owned the El Torito and Chi-Chi’s chains. In 1999, the parent company changed its name to Prandium Inc.
But Koo Koo Roo’s new parent fell into bankruptcy in 2003. The then 18-unit chicken chain was acquired by Magic Brands, based in Austin, Texas, which also later bought Fuddruckers.
By 2010, Magic Brands also filed bankruptcy and, as part of a restructuring, 10 of the remaining 13 Koo Koo Roo locations were closed.
But both Koo Koo Roo (then three units) and Fuddruckers were acquired out of that bankruptcy by Luby’s Inc., based in Houston. The remaining three Koo Koo Roo units were closed by 2014.
There was a lot that went wrong for Koo Koo Roo over those years, Farasat said.
There was a time when salmon was on the menu, for example, and also burgers (when Fuddruckers was a sister brand).
“They lost focus and tried to be everything to everyone,” he said. “Our goal is to have a more narrow focus and bring it back to a lot of what Koo Koo Roo had in its earlier days.”
The last Koo Koo Roo in the Los Angeles area closed in 2014.
Farasat acknowledges that the dining scene in LA has changed significantly since then. In fact, LA is absolutely jam-packed with chicken chains, from Dave’s Hot Chicken and various copycats to legacy brands like Popeyes, KFC and El Pollo Loco—there’s a lot more competition.
Still, Farasat said Koo Koo Roo offers a healthful menu, convenience and affordability—all aspects that appeal to today’s consumers.
“One of the old slogans was ‘Life Unfried,’ and that is central to the brand. We’re still health conscious,” he said. “We’re looking to chart our own course, but I still think there’s a lot of brand loyalty and affection, which, since we made the announcement has really been validated over the past couple of days.”
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