Industry News | March 1, 2013

Schlotzsky's Signs Brand's Largest Franchise Agreement

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Schlotzsky’s, the home of The Original round-toasted sandwich and famous Fresh-from-Scratch buns, announced it has signed the brand’s largest franchise agreement in more than 40 years.

Anchored by its new Lotz Better model and consistent positive sales, the partnership calls for 170 Schlotzsky’s locations throughout California, including Los Angeles, Riverside, Ventura, and San Bernardino counties.

Each of the new restaurants will feature a new, contemporary design and an upgraded service model in which crewmembers hand-deliver food to the tables.

In addition, as part of a co-branding deal with Cinnabon and Carvel, the locations will include counters offering signature treats from the dessert brands.  

"The magnitude of this franchise agreement is a testament to the growing strength of our brand in the marketplace,” says Kelly Roddy, president of Schlotzsky’s. “Between this agreement in California and multiple others we’ve signed in the past year alone, the momentum is incredible.

“On top of the obvious benefits the expansion is having on our brand, it’s also creating job growth in communities around the country,” Roddy adds, noting that the new locations in Southern California will create nearly 7,000 jobs in the next five years.

After completing its initiative to reimage its 350-plus-unit franchise system, executives at Schlotzsky’s are focusing on growing in markets where there is a demand for a high-quality franchise brand.

In this newest deal, Moe Vazin is responsible for opening the 170 locations throughout the market. Prior to joining the Schlotzsky’s family, Vazin experienced much success with his extensive management experience, accumulating a portfolio of supermarkets, manufacturing, and distribution in the retail industry.

“Obviously, we look very carefully at brands before making a significant investment like this,” Vazin says. “We had many reasons for choosing Schlotzsky’s, but the key factors were its high-quality, fresh sandwiches, pizzas, salads, and soups; the fact that we can offer Cinnabon and Carvel under the same roof; and an incredible management team that shares our vision of the brand in Southern California.”

Roddy says Vazin perfectly fits the profile for a Schlotzsky’s multiunit franchisee.

“He’s a top-notch operator, and we’re confident he will not only uphold our brand standards and reputation, but knock it out of the park by making us the top fast-casual destination in Southern California,” he says.

This partnership comes on the heels of Schlotzsky’s signing a multiunit franchise agreement in May 2012 with regional developers John Fehmer and Anastasia Rusakov to open 25 new Schlotzsky’s locations throughout Orange County, California.

With more than 350 locations worldwide, Schlotzsky’s continues its growth momentum by aggressively targeting markets in Texas and untapped markets around the country for multiunit developers.

These markets include: Atlanta; Charlotte, North Carolina; Denver; Kansas City, Missouri; Miami; Nashville, Tennessee; Raleigh, North Carolina; St. Louis; and Tampa, Florida; as well as other underdeveloped markets through the United States.

Roddy says, ideally, Schlotzsky’s plans to have upwards of 700 locations by 2016.