Industry News | November 18, 2011

Schltozsky’s Tri-Brands With Cinnabon, Carvel in Philly

Schlotzsky’s announced that it has signed a history-making franchise deal to bring 30 new restaurants throughout the Philadelphia metro area that will also house Cinnabon and Carvel franchises inside the buildings.

Schlotzsky’s, Carvel, and Cinnabon are all part of the parent company FOCUS Brands Inc. The three food franchises began partnering early last year to open tri-branded locations and have seen robust sales due to this strategy.

In total, the new tri-branded restaurants resulted in a total of 90 franchise agreements to be signed—the largest in Schlotzsky’s 40-year history.

Company executives said the first restaurant is set to open during the first quarter of 2012, with several scheduled to open throughout the remainder of the year.

Signed with Philadelphia-based multi-unit franchise group Prayosha Philly, LLC, this major development agreement includes growth into Philadelphia, Bucks, Mercer, Montgomery, Chester, Burlington, Gloucester, Camden, and Delaware counties.

No stranger to the franchising industry, the Prayosha Philly group owns many hotel franchise concepts throughout the tri-state area, as well as several Dunkin’ Donuts and Moe’s Southwest Grill locations, which are also part of FOCUS Brands. 

“This is by far the largest franchise deal in our company history,” says Schlotzsky’s President Kelly Roddy. “Demand for our brand has been growing in the Philadelphia area, and we’re thrilled to enter the market with such a talented group of business savvy entrepreneurs.”

The Philadelphia deal marks the third major development agreement for the company in the past five months alone. In June 2011, Schlotzsky’s announced it had struck deals to open 25 tri-branded locations throughout New Jersey and Texas.

Chirag K. Patel, principle of Prayosha Philly, says, “With the success we were experiencing with Moe’s Southwest Grill, our team began researching its sister brands and ways we could expand our portfolio with tri-branded locations. Through conversations with Schlotzsky’s executives and franchisees, we felt their principles mirrored our own. Everything from their culture to their partnership approach with franchisees exceeded our expectations. This is an iconic brand that has clearly stood the test of time, and we look forward to introducing it to Philadelphians.”

To be situated in both traditional and non-traditional venues such as train stations, these new locations will feature the brand’s refreshed ‘Lotz Better’ look. The contemporary design incorporates a bright, vibrant color scheme, tongue-in-cheek phrases, circular-themed photography, and a newly implemented service model where crew members hand-deliver food to the tables.