Industry News | June 11, 2000

Chesapeake Bagels Converted to Manhattan Bagel

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New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI) announced on June 1 that it will be adding five Manhattan Bagel franchise units in the Harrisburg, PA market under an agreement with an existing Chesapeake Bagel Bakery franchisee.

The agreement calls for franchisee Tahoe Corporation to convert four of its current units, one of which is an independent location, to the Manhattan Bagel brand. Additionally, Tahoe Corporation will open a fifth Harrisburg location, currently under construction, as a Manhattan Bagel store. The existing locations are in the process of being converted, and are expected to be operating under the Manhattan Bagel name by the end of June. The fifth store is expected to open by the end of July.

All of the stores will use bagel dough and cream cheese produced in Manhattan Bagel's Eatontown, NJ factory, as well as coffee roasted at the New World plant in Branford, CT. The bagels will be boiled and freshly baked at store level throughout the day. New World completed its acquisition of the 77-store Chesapeake Bagel Bakery franchise system from Atlanta-based AFC Enterprises in August 1999.

New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or owns stores under its four brands in 28 states and Washington, D.C. The Company is vertically integrated in bagel dough and cream cheese manufacturing, and coffee roasting, with plants in New Jersey, California and Connecticut.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.