Established
1999
Franchise Units
8
Minimum Investment
$364,567
Franchise Fee
$35,000
Total Investment Range
$685,567
Home Based
No
Description
Coconut Kenny’s is a vibrant, island-themed restaurant chain that brings a taste of paradise to the Pacific Northwest. Specializing in gourmet pan-style pizzas, Hawaiian bread sandwiches, and a variety of appetizers and salads, Coconut Kenny’s offers a unique dining experience that combines quality ingredients with a tropical ambiance. With a commitment to excellence, the brand has become a cornerstone in its local communities, focusing on great food, exceptional service, and a family-friendly environment.
Why Invest in this Franchise?
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Unique Concept: Coconut Kenny’s stands out with its tropical theme and innovative menu, offering a fresh alternative to traditional pizza and sandwich restaurants.
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Community Focused: The brand is deeply embedded in its local communities, emphasizing strong relationships with customers, employees, and business partners.
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Proven Brand Identity: Through strategic branding efforts, Coconut Kenny’s has developed a cohesive visual identity that resonates with families, particularly those with 4 to 6 members, and female decision-makers.
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Expansion Potential: With plans for franchise growth across Washington, investing in Coconut Kenny’s offers an opportunity to be part of a growing brand with a solid foundation.
Background
Established Year & Founding
Coconut Kenny’s was founded in 1999, bringing a vibrant, tropical twist to the traditional pizza and sandwich concept. The brand’s focus has always been on creating a relaxed, family-friendly dining environment with high-quality, made-to-order meals.
Founders & Ownership
The brand is currently owned and operated by brothers Chay and Lee Tan, who purchased Coconut Kenny’s in 2004. Under their leadership, the company has expanded its footprint while maintaining a strong emphasis on community engagement and customer experience. The Tans are actively involved in daily operations and strategic planning, ensuring consistent brand quality and support for franchisees.
Franchise Units & Market Presence
As of 2025, Coconut Kenny’s operates 8 locations in Washington State, including Bellingham, Lynden, Ferndale, Sedro-Woolley, Burlington, Anacortes, Marysville, and Lake Stevens. While these locations are currently company-owned, the brand is actively pursuing franchising opportunities to expand beyond the Pacific Northwest.
Brand Journey & Development
Over the past two decades, Coconut Kenny’s has developed a distinct tropical brand identity that resonates strongly with families, particularly women as primary decision-makers in family dining. Its menu, ambiance, and community involvement have created a loyal customer base, making the brand a recognized name in fast-casual dining in Washington State.
Industry Category
Coconut Kenny’s operates in the fast-casual dining sector, with a unique position in tropical-inspired pizzas, sandwiches, and healthy, customizable meal options. The combination of a strong brand identity, innovative menu offerings, and community-oriented approach sets Coconut Kenny’s apart from other competitors in the region.
Company History Highlights
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1999 – Coconut Kenny’s founded, first location opens in Bellingham, WA.
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2004 – Purchased by Chay and Lee Tan, initiating brand modernization and expansion.
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2005–2015 – Gradual expansion to additional Washington locations.
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2019 – Company begins exploring franchising opportunities.
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2025 – Eight locations in Washington, with franchise expansion actively in progress.
Market Presence & Expansion Potential
Currently concentrated in Washington State, Coconut Kenny’s has strong brand recognition in the Pacific Northwest. The company is planning to expand its franchise network both regionally and nationally, targeting high-potential markets with strong family demographics.
Other Information
The brand emphasizes community involvement, environmentally conscious practices, and employee development programs. Coconut Kenny’s also invests in digital ordering, delivery services, and marketing innovations to keep pace with evolving customer expectations.
Support Training
Coconut Kenny’s offers comprehensive support and training to ensure the success of its franchisees:
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Pre-Launch Support: Assistance with site selection, lease negotiation, and store design to ensure the location aligns with brand standards.
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Operational Training: In-depth training covering all aspects of restaurant operations, including food preparation, customer service, and inventory management.
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Marketing Support: Access to marketing materials and strategies to promote the brand and attract customers.
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Ongoing Assistance: Continuous support through regular communication, performance evaluations, and updates on best practices to maintain operational excellence.
Ideal Candidate
The ideal franchisee for Coconut Kenny’s is:
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Passionate About Food: An individual who loves the food industry and is committed to delivering high-quality dining experiences.
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Community-Oriented: Someone who values building strong relationships within the local community and fostering a family-friendly environment.
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Business-Minded: An entrepreneur with a solid understanding of business operations and a willingness to follow established systems and processes.
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Financially Capable: An investor with the financial resources to meet the franchise’s investment requirements and sustain operations during the initial phase.
Financial Detail
| Financial Item | Amount (USD) | Notes |
|---|---|---|
| Franchise Fee | $35,000 | One-time fee for acquiring franchise rights |
| Total Investment Required | $364,567 – $685,567 | Includes build-out, equipment, and initial inventory |
| Working Capital | $30,000 – $50,000 | To cover operating expenses during initial months |
| Royalty Fee | 5% of gross sales | Ongoing monthly fee for brand usage and support |
| Advertising / Marketing Fee | 1% of gross sales | Contributes to local and national marketing campaigns |
| Infrastructure / Build-out Cost | $200,000 – $400,000 | Store design, furniture, kitchen equipment, signage |
| Expected ROI | 20% – 25% | Average return on investment after break-even |
| Break-even Time | 18 – 24 months | Depending on location and sales performance |
| Potential Revenue Streams | Dine-in, Takeout, Delivery, Catering, Merchandise | Diversified income sources |
| Franchise Agreement Term | 10 years | Renewable for an additional 5 years |