LOS ANGELES Former Taco Bell Corp. chairman John Antioco and private-equity firm CIC Partners have jointly invested $12 million in the Red Mango USA frozen yogurt chain, officials said Tuesday.
CIC and Antioco are now the largest stakeholders in Red Mango, and Antioco has been named chairman of the company. Founder Dan Kim will remain president and chief executive and retains a minority stake.
The investment brought other management changes to the parent of the 32-unit chain. Jean Birch, former president of Brinker International Inc.’s Romano’s Macaroni Grill and Corner Bakery Cafe chains, was named Red Mango’s chief operating officer. Jim Notarnicola, formerly chief marketing officer at the Blockbuster video rental chain and 7-Eleven convenience-store brand, will lead the chain’s marketing division.
The changes signal a possible increase in competition among chains specializing in Korean-style frozen yogurt. One of Red Mango's chief rivals, Pinkberry, was given a $27.5 million investment last October by Maveron LLC, a venture capital firm co-founded by Starbucks chairman Howard Schultz.
Aleading frozen yogurt brand in South Korea, Red Mango was imported into the United States in 2002 as a separate entity with a minority interest held by the overseas brand’s parent.
The first U.S. unit of Red Mango opened in Los Angeles in 2007, where Red Mango USA is now based. The chain now has units in California, New York, Illinois, Washington, Oregon, Utah and Nevada. About half of its U.S. stores are franchise locations.
By year end, the chain expects to have between 45 and 50 units, though Kim said Red Mango would continue to look for strategic locations. “It’s not like we’re going to grow as quickly as possible,” he said.
In addition to his work with Taco Bell, Antioco previously served as chairman and chief executive of Blockbuster and the Circle K convenience store chain. He also served in the past as senior vice president of operations for 7-Eleven.
“We were selective in choosing an investment partner who shared our passion for creating delicious and nutritious desserts for people who want to eat well and look good,” Kim said.
Dallas-based CIC previously has invested in such restaurant ventures as Buffet Partners, which operated the Furr’s and Stevie B’s buffet chains; Main Street, a T.G.I. Friday’s franchisee later sold to The Briad Group; DF&R Restaurants, which operated the Don Pablo’s and Harrigan’s restaurants and was later sold to Avado Brands; Express Foods Group, operator of the Cafe Express chain later bought by Wendy’s; and Quiznos.
