Industry News | November 21, 2013

Schlotzsky’s Partners with Grocery Brand

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In an effort to expand and diversify the brand’s national presence, Schlotzsky’s announced it has signed a deal with Kentucky-based Houchens Industries for cobranding with the company’s Crossroads IGA grocery and fuel concept. Anchored by Schlotzsky’s Lotz Better model, the partnership calls for multiple locations to be built in conjunction with future Crossroads IGA developments in Kentucky and Indiana.

The restaurants within the grocery and fuel stations will feature Schlotzsky’s contemporary design and upgraded service model, in which crew members deliver food to tables. Schlotzsky’s at Crossroads IGA are expected to have a drive thru, and as part of a tri-branding deal with Cinnabon and Carvel, the locations will include counters offering signature treats from the dessert brands.

"This development agreement with Houchens Industries expressly demonstrates our dedication to distinctive franchising opportunities,” says Kelly Roddy, president of Schlotzsky’s. “We expect the Crossroads IGA customer will embrace the added convenience and extensive menu from our restaurants.”

Schlotzsky’s offers more than 15 different sandwiches on its round buns, as well as pizzas, tossed salads, a variety of soups, and desserts, including a Cinnabon Express bakery where guests can enjoy a number of treats, including the Cinnabon Classic Roll and CinnaPacks, as well as a Carvel soft-serve station.

Crossroads IGA concepts are built on the border of dense residential areas and rural areas or highways that do not have a larger store in the immediate area. Considered a secondary grocery store, the locations carry a selective variety of groceries, including bread, milk, eggs, condiments, baking products, produce, and meats, and are anchored by a fuel station to offer convenience for local residents and travelers.

“Known for top-quality products and convenience, the Schlotzsky’s brand is the perfect fit to strengthen our QSR portfolio at Crossroads IGA,” says Christian Lucas, director of food service at Houchens Industries. “We expect the partnership will offer our customers more of what they already love about our stores.”

This signed agreement comes on the heels of a number of recent multi-unit deals for Schlotzsky’s. With more than 350 locations worldwide, Schlotzsky’s continues its momentum by targeting markets in Texas and underdeveloped markets including Denver, Nashville, and Tampa, Florida.