Smoothie King, accepting a $2.4 million sweetener from state taxpayers, is moving its international headquarters from Covington back to its birthplace in Jefferson Parish. The privately held company flirted with Dallas but decided to keep its 45 headquarters jobs in Louisiana and to add 60 new ones over the next five years, officials said Tuesday.
Founded in 1973 by Steve and Cindy Kuhnau, operating out of a health food store on Veterans Memorial Boulevard in Kenner, Smoothie King Franchises Inc. has grown to more than 600 locations in 32 states, South Korea and the Cayman Islands. In July, it was sold to a group headed by Wan Kim, who had started sipping the company's blend of fruit, nutrients and proteins while a graduate student at the University of California at Irvine. Since 2003, he has opened more than 100 Smoothie King stores in South Korea.
"We plan to open more than 1,000 new locations both in the United States and internationally by the end of 2017," Wan said.
Keeping the company headquarters in Louisiana was a coup for the state Department of Economic Development, Greater New Orleans Inc. and the Jefferson Economic Development Commission.
GNO Inc. said it outlined the business case for staying in the region, highlighted the local workforce and leadership and hosted quality-of-life tours. The state agency said it will grant Smoothie King $2.4 million provided the company moves as planned into Metairie's Lakeway Two office tower, retains 45 jobs and adds 60 jobs at an average annual salary of $75,000 in five years. (Read the company's agreement with the state.)
But Wan said the financial incentive was not what clinched the deal. "It's that they care," he said of the company's local suitors.
Gov. Bobby Jindal said the company had been looking at moving to Dallas, which not only is a magnet for franchise retailers but also has better airline connections. He attributed the company's decision to stay here to Louisiana's "strong business climate and the best workers in the world."
Smoothie King expects to complete its move to Metairie before the third quarter of 2013.
Jefferson Parish President John Young said Wan, his wife and three children will move to the area.
"We don't want any new taxes, but we certainly welcome new taxpayers," Young said.