Industry News | September 5, 2013

Togo’s To Develop 20 Franchised Units In OR, CA

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Togo’s Eateries announced the signing of two multiunit franchise agreements with an existing franchise group to develop 20 new restaurants in Oregon and California over the next several years.

Togo’s franchisee Mark Fischer will open 10 restaurants in Portland, Oregon, and 10 additional locations in Los Angeles County, California, with the first location scheduled to open in Portland in the first quarter of 2014.

This new development is part of the sandwich chain’s plan to grow the brand to 400 restaurants along the West Coast.

“This latest agreement demonstrates the commitment of our dedicated franchisees, as they continue to expand Togo’s footprint in new and existing markets,” says Tony Gioia, chairman and CEO of Togo’s Holdings. “As the best franchise opportunity in the sandwich category, our franchisees recognize the strength of the brand and are passionate about providing guests with an exceptional, one-on-one, deli-style experience, which has ultimately driven our success.”

Fischer and his partners own and operate two California restaurants in Stockton and Tracy, and first joined the brand in 2007. The franchisees also have another location scheduled to open in Fairfield, California, later this year, as well as a commitment to develop a restaurant in Lodi, California.

“Our current restaurants have been successful in their prospective markets and we’re thankful for all of the valuable support that we’ve received from Togo’s over the years,” Fischer says. “We look forward to continuing to serve our existing fans, while also introducing new customers to Togo’s big, fresh, and meaty sandwiches.”

Togo’s recently launched a multiunit franchise development incentive program to drive expansion along the West Coast. Both new and existing franchisees who sign a new agreement for three or more locations will receive reduced royalty fees for the first two years for each new restaurant that is developed in Washington, Oregon, Idaho, Utah, Colorado, Nevada, and Arizona.

Togo’s, which has experienced 12 consecutive quarters of same-store sales increases, is seeking qualified multiunit franchisees who have a passion for the brand and deep connection to their community.

Both new and existing Togo’s franchisees will benefit from $10 million for remodels and transfers, as well as $5 million to build new restaurants in the state.

At Togo’s, traditional restaurants experienced average unit sales in excess of $633,000, with 50 percent averaging more than $799,000 and 25 percent averaging more than $930,000.