Industry News | November 5, 2013

Togo’s Signs Deal for California Expansion

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Togo’s Eateries Inc. announced it signed development agreements with several new and existing franchisees to expand in markets across California, including in Los Angeles, Sacramento, San Jose, Santa Cruz, Riverbank, El Centro, and Petaluma. This new development is part of the sandwich chain’s plan to grow its footprint in new markets in California and throughout the west.

Togo’s will open two restaurants in downtown Los Angeles, two in midtown and downtown Sacramento, and single units in San Jose, Santa Cruz, Riverbank, El Centro, and Petaluma.

“We’re thrilled to continue our expansion in California, home to more than 230 Togo’s restaurants. California is where Togo’s originated, and it’s home to our raving fans who have contributed to our success over the past four decades,” says Tony Gioia, chairman and CEO of Togo’s Holdings, LLC. “Our new and existing franchisees recognize the strength of the Togo’s brand and are committed both to growing with us and providing guests with big, fresh, meaty sandwiches with a smile.”

Togo’s recently announced additional development agreements to open 20 restaurants in West Los Angeles and Portland, Oregon, as well as six in Salt Lake County, Utah, three in the Greater Phoenix area and two in Yuma, Arizona.

Togo’s has launched a multi-unit 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 four consecutive years of same-store sales increases, is seeking qualified multi-unit 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 over $799,000, and 25 percent averaging over $930,000. Candidates should possess liquidity of $150,000 for a single restaurant and a net worth of $300,000. Area developers looking to develop three or more restaurants should have liquidity of $450,000 and net worth of $900,000. Special incentives are available for qualified franchisees interested in opening three or more restaurants.