Industry News | June 27, 2011
Schlotzsky's Growth Skyrockets
Schlotzsky’s, the home of The Original round toasted sandwich, announced that it has signed 75 franchise agreements for a total of 25 restaurants that will each house the Schlotzsky’s, Cinnabon, and Carvel concepts under one roof.
Company executives said the restaurants will begin to open throughout New Jerseyand Texasduring the next six – 12 months. The first development agreement was signed with New Jersey-based Better Bunz, LLC for 17 tri-brand locations (a total of 51 agreements between the three concepts), to open in areas throughout New Jersey.
Meanwhile, Texas-based Sac-N-Pac inked the second deal, with eight tri-brand locations, for a total of 24 agreements to open throughout Houston, San Antonio, and Central Texas.
“Together, these agreements represent the largest in Schlotzsky’s history,” says Kelly Roddy, president of Schlotzsky’s. “We are thrilled to expand the brand throughout Texasand New Jerseywith a talented group of business savvy entrepreneurs.”
Roddy says that the new locations will feature the brand’s ‘Lotz Better’ look, a bright, contemporary feel with a circle theme and a new service model where crew members hand-deliver food to the tables.
While Anthony and Lama Dalleggio of Better Bunz, LLC will own the new Schlotzsky’s restaurants, their daughter, Lea, will oversee operations. In addition, the Dalleggios will work with experienced restaurateurs as part of their team to help with site selection, marketing, and operations.
“Our family’s strong affinity for the Schlotzsky’s brand started many years ago while living in Houston,” Lea Dalleggio says. “When we moved to New Jersey, our family missed our favorite Schlotzsky’s sandwich and looked into bringing the brand to the region. After our due diligence, we couldn’t pass up the opportunity to replicate the Schlotzsky’s culture in New Jersey. We look forward to serving our customers with the best in gourmet sandwiches and beyond.”
Sac-N-Pac, a family-owned and operated fuel and grocery retailer, will open non-traditional interstate/convenience-connected locations primarily operated along major highways and travel plazas. Each Schlotzsky’s restaurant will share a building with the fuel/convenience retail and have its own entrance, a separate drive-thru, and a connected pass-through in the building.
With more than 350 locations worldwide, Schlotzsky’s continues its growth momentum by aggressively targeting markets in Texas and in untapped markets around the country including Atlanta; Charlotte and Raleigh, North Carolina; Denver; Orlando and Tampa, Florida; Kansas City; Nashville; Phoenix; and St. Louis for multi-unit developers. Roddy says that, ideally, Schlotzsky’s plans to have upwards of 700 locations by 2015.
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