Togo’s Eateries Inc. announced today it has completed the acquisition of 13 franchised restaurants in the East Bay and San Jose areas of California from company founder Mike Cobler. The acquisition brings Togo’s company-owned restaurants to 19 units in California.
“This recent acquisition is part of our long-term growth strategy and reflects our company’s commitment to operational excellence,” says Tony Gioia, chairman and CEO of Togo’s Holdings LLC. “Togo’s newly acquired restaurants will provide a larger platform for testing new products and operating systems. The locations will also offer additional resources to support training for new franchisees, management, and crew for future grand openings.” The company’s newly appointed senior director of company restaurant operations, Tony Hardin, will oversee the operations for all of Togo’s corporate locations.
Togo’s, which has more than 320 restaurants open and under development throughout the West, has experienced four consecutive years of same-store sales increases. Last year, the company launched a multiunit franchise development incentive program to drive expansion in key growth markets. 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. Additionally, franchisees will benefit from $10 million for remodels and transfers, as well as $5 million to build new restaurants.
At Togo’s, traditional restaurants experienced average unit sales in excess of $659,000, with 20 percent averaging over $836,000. To become a part of the Togo’s team and be your own boss, 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.