Industry News | July 20, 2012
Togo's Ramps Up West Coast Development
Togo's, a "West Coast Original" since 1971, announced plans to expand its footprint in four key markets: Salt Lake City; Boise, Idaho; Las Vegas; and Seattle. Additionally, the sandwich chain will continue its growth efforts throughout Oregon and Arizona.
The new development strategy comes on the heels of strong growth for Togo's in the first half of 2012, with the signing of 10 agreements for new restaurants in California, Nevada, and Oregon.
"We are bringing Togo's to new cities and towns throughout the West to answer the call from our raving fans and creat opportunities for new franchisees," says Tony Gioia, chairman and CEO of Togo's Holdings, LLC. "At Togo's, our high average unit volumes, low start-up franchise costs, and unmatched corporate support are enabling us to develop in existing markets and new key growth cities."
To date, Togo's has opened five new restaurants since January 2012 in Tracy, California; Gilbert, Arizona; Bend, Oregon; and Lathrop, California, as well as Mountain View, California. Togo's will continue to build the brand with 20 additional restaurant openings this year. The expanded growth efforts in new markets come on the heels of eight quarters of consecutive same-store sales increases and growing interest from new franchisees to join the Togo's family.
"Our brand has never been stronger and now is the time to join one of the best franchise opportunities in the sandwich category," says Todd Peterson, vice president of franchise sales. "We're excited to bring Togo's to more communities across the West Coast and are confident the concept will be well received."
As part of Togo's 40th anniversary, the chain is actively recruiting passionate single and multiunit operators to help grow the brand to 400 restaurants by 2015. Most recently, Togo's formed a $15 million fund to fuel its development in 2012 and beyond. With this funding, both new and existing qualified Togo's franchisees will have access to $5 million to build new restaurants and $10 million for transfers.
Togo's traditional restaurants boast one of the strongest sales-to-investment ratios in the sandwich segment. At Togo's, 51 percent of its traditional restaurants operating for a full 12 months in 2010 experienced average unit sales in excess of $600,000, with 25 percent over $800,000.
To become a part of the Togo's team, franchisee candidates should possess a liquidity of $150,000 for a single restaurant and a net worth of $300,000. Area developers looking to invest in three or more restaurants should have a liquidity of $450,000 and a net worth of $900,000. The estimated initial investment to own a Togo's is between $264,000 and $414,500, with a franchise fee of $21,000-$30,000.
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