The first location, originally named "The Keg and Cleaver" restaurant was founded in 1971 by George Tidball in North Vancouver, British Columbia.

By February 2018, The Keg had expanded to 160 locations in Canada and the United States, when Canadian food industry giant Cara Operations (now known as Recipe Unlimited) purchased the chain for $200 million, from then owners David Aisenstat (49%) and Fairfax Financial (51%).

The company was founded in 1971 in North Vancouver, British Columbia as The Keg 'n Cleaver by George Tidball at one very small, downstairs location in an old industrial building in the Moodyville area of lower Lonsdale.

The Downtown Winnipeg location opened in 1975 as The Keg and Cleaver in the former Hudson's Bay Company Garage on Garry Street, where it still operates today.

[4] In 2002, KRL created the Keg Royalties Income Fund, sold through a public offering on the Toronto Stock Exchange, trading as TSX: KEG.UN.