Schlotzsky’s will take a bigger bite in Denver

By Mark Harden, News Director – Denver Business Journal

Schlotzsky’s, a sandwich chain with 10 Colorado locations, says it plans to add dozens more by the end of the year in metro Denver.

Austin, Texas-based Schlotzsky’s — a unit of Atlanta-based Focus Brands Inc. — says it has plans for 15 franchise deals in the city of Denver and another 30 deals in the Denver metro area by the end of 2014.

“The Denver market has already cultivated a loyal fan following and a strong brand reputation as consumers demand more convenient, fresh food options,” said David Wheeler, the chain’s vice president of franchise development. “We anticipate the same great success we’ve seen across Colorado in this targeted region of the state.”

Wheeler signaled that the company seeks “qualified franchise partners” in Denver.

The company said the new stores will offer franchisees “co-branding opportunities” with other Focus brands, Cinnabon and Carvel, “to offer franchise partners multiple streams of revenue under one roof.”

The move comes as homegrown sandwich chain Quiznos has faced challenges, shuttering thousands of stores in recent years and going through a pre-packaged Chapter 11 process.

Schlotzsky’s also is targeting markets in Texas as well as Oklahoma City, Tulsa, St. Louis and Kansas City for further expansion.

The chain says it currently has 350 locations in 37 states and three other nations.

Source: Denver Business Journal

Schlotzsky’s-Cinnabon opens in Jonesboro, AR!

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There’s a new Schlotzsky’s-Cinnabon coming to Jonesboro, AR on Tuesday, November 19. Doors open at 10 a.m., and get there early, because the first 100 people to purchase a Cinnabon 6-Pack will get FREE Schlotzsky’s for a year. That’s one FREE small The Original sandwich each week for 52 weeks! We’ll have lots of fun games and other prizes to giveaway all day. Don’t miss it!

1605 Stadium Blvd., Jonesboro, AR

(870) 336-0660

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on November 19, 2013 and expiring on November 19, 2014. Only valid for persons 18 years or older. Offer valid only at the Jonesboro Schlotzsky’s.

Schlotzsky’s-Cinnabon opens in Corsicana, TX

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Don’t miss the grand opening of the new Schlotzsky’s-Cinnabon in Corsicana, TX on Thursday, June 27. Doors open at 10am and the first 100 people to purchase a Cinnabon 6-Pack will get free Schlotzsky’s for a year. We’ll have lots of fun games and prizes, so get there early!

3101 Mountain Drive

903-641-2867

*One small The Original sandwich per week at this location for 52 consecutive weeks commencing on June 27, 2013 and expiring on June 27, 2014. Only valid for persons 18 years or older. Offer valid only at the Corsicana Schlotzsky’s.

Schlotzsky’s Shatters Company Record With Agreement for 170 New Restaurants

Fast-Casual Chain Inks Game-Changing Partnership to Build Huge Presence in Southern California

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In a historic deal with far-reaching impact in the fast-casual segment, Schlotzsky’s®, the home of The Original® round-toasted sandwich and famous Fresh-from-Scratch® buns, announced today it has signed the brand’s largest franchise agreement in more than 40 years. Anchored by its new Lotz Better® model and consistent positive sales, the partnership calls for 170 Schlotzsky’s locations throughout California, including Los Angeles, Riverside, Ventura and San Bernardino counties.

Each of the new restaurants will feature a new, contemporary design and an upgraded service model in which crew members hand-deliver food to the tables. In addition, as part of a co-branding deal with Cinnabon® and Carvel®, the locations will include counters offering signature treats from the iconic dessert brands.

“The magnitude of this franchise agreement is a testament to the growing strength of our brand in the marketplace,” said Kelly Roddy, president of Schlotzsky’s. “Between this agreement in California and multiple others we’ve signed in the past year alone, the momentum is incredible. On top of the obvious benefits the expansion is having on our brand, it’s also creating job growth in communities around the country,” noting that the new locations in Southern California will create nearly 7,000 jobs in the next five years.

After successfully completing its initiative to reimage its 350-plus unit franchise system, executives of Schlotzsky’s are focusing on growing in markets where there is a demand for a high-quality franchise brand. In this newest deal, Moe Vazin is responsible for opening the 170 locations throughout the market. Prior to joining the Schlotzsky’s family, Vazin experienced much success with his extensive management experience, accumulating a portfolio of supermarkets, manufacturing and distribution in the retail industry.

“Obviously, we look very carefully at brands before making a significant investment like this,” Vazin said. “We had many reasons for choosing Schlotzsky’s, but the key factors were its high-quality, fresh sandwiches, pizzas, salads and soups, the fact that we can offer Cinnabon and Carvel under the same roof, and an incredible management team that shares our vision of the brand in Southern California.”

Roddy added that Vazin perfectly fits the profile for a Schlotzsky’s multi-unit franchisee. “He’s a top-notch operator, and we’re confident he will not only uphold our brand standards and reputation, but knock it out of the park by making us the top fast-casual destination in Southern California,” he said.

This partnership comes on the heels of Schlotzsky’s signing a multi-unit franchise agreement in May 2012 with regional developers John Fehmer and Anastasia Rusakov to open 25 new Schlotzsky’s locations throughout Orange County, Calif.

With more than 350 locations worldwide, Schlotzsky’s continues its growth momentum by aggressively targeting markets in Texas and untapped markets around the country for multi-unit developers. These markets include: Atlanta, Charlotte, Denver, Kansas City, Miami, Nashville, Raleigh, St. Louis and Tampa, as well as other underdeveloped markets through the United States. Roddy added that, ideally, Schlotzsky’s plans to have upwards of 700 locations by 2016.

For more information regarding the Schlotzsky’s franchise opportunity, visit http://www.schlotzskysfranchising.com/or call 800-846-BUNS.

 

Schlotzsky’s-Cinnabon-Carvel opens in Tallahassee on November 8

 

Come celebrate the grand opening of our newest Schlotzsky’s Cinnabon-Carvel location in Tallahassee at 1814 W. Tennessee Street! As part of the celebration, Schlotzsky’s will reward the first 100 customers who purchase a CinnaPack™ of six Cinnabon Classic rolls at the new Tallahassee location, with free Schlotzsky’s for a year, which includes one free The Original (small) sandwich a week for a year. In addition, fans will have the chance win prizes such as an Apple iPad, $100 Schlotzsky’s Gift Card, and $50 Schlotzsky’s gift card when they sign up for the Bun & Fun eClub during opening week.

 

*One The Original (small) per week at this location for 52 consecutive weeks commencing on November 8, 2012 and expiring on November 8, 2013. Only valid for persons 18 years or older. Offer valid only at the Tallahassee Schlotzsky’s.

© 2012 Schlotzsky’s Franchise LLC. All rights reserved

Schlotzsky’s-Cinnabon opens in San Antonio May 19!

The new Schlotzsky’s-Cinnabon in San Antonio, Texas is scheduled to open at 8am on Saturday, May 19!

The first 100 customers to purchase a Cinnabon 6-Pack will receive free Schlotzsky’s each week for a year, so get there early to snag a spot in line.

Schlotzsky’s-Cinnabon

Address: 8311 Highway 151, San Antonio, TX

Phone Number: (210) 647-5099

Franchise Chatter Exclusive: Q&A Interview with Kelly Roddy, President of Schlotzsky’s

by AMBROSIO on FEBRUARY 5, 2012

Since 1971, Schlotzsky’s has been the home of The Original toasted sandwich. The menu has evolved with customers’ tastes to include other sandwiches, pizzas, salads and soups. Schlotzsky’s has more than 350 locations worldwide, with restaurants in Turkey, China, Saudi Arabia, South Africa, Costa Rica, Jordan and Kuwait. Schlotzsky’s is owned by FOCUS Brands Inc., the franchisor and operator of over 3,300 Carvel, Cinnabon, Schlotzsky’s, Moe’s Southwest Grill, and Auntie Anne’s locations and Seattle’s Best Coffee on certain military bases and in international markets.

Kelly Roddy came to Schlotzsky’s in 2007 as president, having served as director of sales and marketing and later director of retail operations for H-E-B Grocery Company, a 106-year-old retailer with more than 315 locations throughout Texas and Mexico. Before his time with H-E-B, he was vice president and executive director of new business development for Scholastic Corporation and prior to that, he spent eight years with Walmart Stores, Inc. in a variety of positions. In 2011, Kelly received his Certified Franchise Executive (CFE) designation from the Institute of Certified Franchise Executives and is also a member of the International Franchise Association (IFA).

Franchise Chatter (FC):  Can you share with us the story of how Schlotzsky’s got its start?

Kelly Roddy (KR):  In 1971, a small shop on South Congress Avenue in Austin, Texas was home to a single, one-of-a-kind sandwich. Don and Dolores Dissman opened the first Schlotzsky’s with only one product – an 8-inch muffaletta stuffed with three meats, cheeses, lettuce, tomato, olives and dressing, served on hot, freshly-made sourdough bread. Modeled after the muffalettas they discovered in an Italian grocery store in New Orleans’ French Quarter, The Original toasted sandwich was an instant hit.

FC:  For those unfamiliar, please tell us about your food? What is unique about your menu compared to other fast food franchises specializing in sandwiches? 

KR:  The main thing that sets us apart is our bread – our buns are round and are baked fresh-from-scratch in the stores every day. It differentiates us and it’s our signature shape. Our sandwiches are served warm and are made to order. In addition to our great-tasting sandwiches, we have fresh-tossed salads, soups and pizzas.

FC:  Can you describe the ideal franchisee for a Schlotzsky’s restaurant?

KR:  Our ideal franchise partner is a well-capitalized, savvy business professional. He or she is a passionate, high-energy individual with a true entrepreneurial spirit. In addition, they should have previous restaurant experience and are willing to be a multi-unit operator.

FC:  What is the ideal neighborhood and territory for a Schlotzsky’s restaurant?  In what regions of the country do you see the strongest demand for your restaurants?

KR:  We have a strong presence in middle America and appeal to a wide customer base. Our guests have a distinct appreciation for top-quality food and great customer service. Schlotzsky’s is in strong demand, with locations in 37 states across the U.S., but our highest concentration of restaurants is in the central and southern parts of the country. From there, we are growing out concentrically as our distribution system allows and have recently signed agreements for areas in the northeast.

FC:  What specific steps do your most successful franchisees take in order to build and grow their respective businesses?

KR:  The most important thing is to be an active owner willing to follow a proven system that works. Our most successful franchise partners are active in their restaurants, are involved with the brand and are quick to embrace and promote change and innovation.

FC:  What are some of the things you are doing to help your franchisees become profitable?

KR:  As of the end of 2011, our entire system has been reimaged, which reflects a circle-themed design and includes new colors, new graphics, new signage and new menuboards. We’ve also revamped our menu, adding fresh-tossed salads along with sandwich meals, which appeals to our current customers and brings in a new age group. In addition, 165 of our restaurants now have Cinnabon as part of their operations and 30 will have both Cinnabon and Carvel Ice Cream.

FC:  What are your goals for Schlotzsky’s in the next few years and how do you plan to grow your business?

KR:  Now that we’ve completed our rebranding, it’s time to focus on growth and continued improvement of our operations and our menu. Moving forward, most of our new restaurants will be tri-brand locations (Schlotzsky’s, Cinnabon and Carvel). Growth is a big focus for us and we’re looking for franchise partners who are ready to come into our system and operate multiple units. Increasing pizza sales and different day parts are high potential opportunities. Our pizza is unique because we use our sourdough bread mix. Another major goal is to expand our catering services across our brand in order to provide cohesive, systemized catering to our guests.

FC:  What advice can you give prospective franchisees on how to evaluate the overwhelming number of franchise opportunities available to them?

KR: Do your research. Find a brand that is relevant and growing. Every brand has its own culture and distinctive characteristics, so find one you are passionate about and that you believe in. And definitely reach out to other franchise partners to learn from their experiences and find out what they like and don’t like about the brand.

FC:  What advice can you offer new franchisees on how to increase their chances for success in the restaurant business?

KR:  Your franchisor will present you with a business model to guide you to success. The best thing you can do as a franchisee is embrace the business model and make it work for you. That’s the advantage of being a part of a franchise system, because processes and products are tested and perfected before they are implemented in restaurants.

FC:  Is there anything else you wish to share about Schlotzsky’s?

KR:  After 40 years in the restaurant business, we’ve worked hard to develop strong, positive relationships with our franchise partners. We have a clear line of communication within our franchise system and include individual franchise partners in our decision making through our franchise advisory council. We’ve also used our time and experience to create a brand culture that is relevant, quirky and fun. With our sister companies, Cinnabon and Carvel, we offer the unique opportunity to operate three complementary brands under one roof.

Source: Franchise Chatter

Schlotzsky’s hopes to grow once again in the Sunshine State

By Susan R. Miller

Schlotzsky’s fast-casual restaurants should be popping up again all over the Sunshine State.

The company once had a presence here, but a 2004 bankruptcy nearly halved its number of restaurants.

In 2006, Atlanta-based Focus Brands purchased Schlotzsky’s and rebranded existing stores. Now the company is poised for growth, VP of Sales David Wheeler said.

Once known as home to the original round sandwich of meats, cheeses and black olives, Schlotzsky’s expanded its menu to offer salads, pizzas, wraps and soups.

“Under Focus Brands, we have made it more fun, unique and hip,” Wheeler said. “It used to be more of a deli; now it’s more fast-casual.”

On a scale of one to 10, he said Florida is a 10 when it comes to the company’s growth strategy.

“Florida is the No. 1 state where we get requests from customers to come back,” Wheeler said.

At the recent Franchise Expo South in Miami Beach, Wheeler said Focus Brands came away with a lot of strong franchise candidates from all over the state.

There are just three Schlotzsky’s in Florida: one in Gainesville and two in Panama City.

Wheeler is working with a group looking to develop one in Orlando and another in Fort Myers, and he’s hoping to find partners for South Florida. The target is 150 restaurants statewide.

Because Focus Brands has Carvel and Cinnabon under its corporate umbrella, Schlotzsky’s will sell both. The franchise fee, which includes all three brands, is $38,500. Total costs can range from $250,000 to more than $650,000, depending on buildout costs.

Source: South Florida Business Journal

Chain Profile: Schlotzsky’s

This restaurant chain used its signature round sandwiches to inspire an updated interior design while leveraging a custom-made equipment package to rejuvenate operations.

By:  Dana Tanyeri

Like many in middle age — people and restaurants alike — Schlotzsky’s had become frumpy. The Austin, Texas-based sandwich chain, which turned 40 this year, still had a popular signature toasted sandwich to tout, but just about everything else about the concept had become tired, inconsistent and borderline irrelevant in today’s competitive fast-casual arena. With growth stalled and unit closures on the horizon, some serious “nipping and tucking” was necessary.

Enter FOCUS Brands, the multiconcept operator that acquired Schlotzsky’s in November of 2006. At that time Schlotzsky’s had about 365 units nationwide and systemwide sales of $210 million. Initially focused more on fundamentals such as customer service and making simple cosmetic improvements than on mapping out a growth strategy, FOCUS Brands brought on Kelly Roddy as Schlotzsky’s new brand president in 2007. Since then, Roddy and his team have systematically sized up and reimaged Schlotzsky’s, giving it a new look, a new style of service, new ways to boost unit profitability, and a whole new brand promise, through which every Schlotzsky’s move is now filtered. That promise is simply stated: “Lotz Better.”

“We knew we had to grow the company, but we also knew we weren’t going to grow until some things were fixed,” Roddy says. “We weren’t relevant. Being a 40-year-old system, we were inconsistent across the country, with a few different prototypes out there. We ended up reimaging the entire system and put together this brand filter that says anything we do is going to be ‘Lotz Better’ than what the competition is doing. If it’s not, we’re not going to roll it out. We consumer panel it. We run it through our franchise advisory group. We test it, tweak it, go back and test it again. It’s a time-consuming process, but we’re really excited about the results we’re getting.”

That process applied to the chain’s contemporary new look, as well. Teaming up with Atlanta-based Back Lot Productions, a brand development and design firm, Schlotzsky’s spent about two years doing consumer research to understand the brand’s strengths (its food) and weaknesses (tired look and feel, inconsistency, spotty geographical coverage) and what its customers wanted. Designs were drawn up and put before consumer panels.

“We got a lot of feedback about what our consumers would consider a very relevant, hip, cool design, and ultimately we built one new prototype unit,” Roddy says. “We basically took an old store in Waco, Texas, across the street from the new prototype. The type of location was the same — a freestanding drive-thru — and the menu was identical. Only the look and feel was different, but we saw phenomenal impact. Before and after research showed that customers at the new prototype thought we were hipper and more relevant. There was a perceived improvement in food quality. We started skewing more female than male, which was a change for us. Our consumers even perceived us to be more environmentally friendly, though we really hadn’t taken any steps in that direction.”

The best impact, however, was on revenues. Sales at the new prototype, which opened in the fall of 2009, were 40 percent higher than in the old unit that it replaced. Roddy and company were now armed with solid confirmation that they were on the right track.

As he puts it, “It was an overall home run our first time at bat.”

All new stores have the new look, and the company is in the process of reimaging or doing full remodels on all existing Schlotzsky’s units nationwide; the company intends to complete all basic reimaging by the end of 2011. Roddy says that new-store success has been strong, but he’s even more excited about the results being achieved by remodeled units — an average 28 percent increase in sales.

Signature Sandwich Inspires New Design
The inspiration for a key element in Schlotzsky’s new look came from its signature sandwich. “There are dozens of sandwich chains in the U.S. Most are subs or square, but there really is nobody who does a round bun baked fresh from scratch in the stores every day,” Roddy says. “It differentiates us, and it’s our signature shape; so everything in the new design is based on the round shape.”

To that end, order and drink counters are now rounded.

Tables are round, patterns on the tables are round, and lampshades are round with round patterns on them. The shape is used as a design element in all merchandising materials and signage, on the company’s website, in its packaging and new logo, which features the brand promise “Every Bite Lotz Better” inside a circle with the “o” in Schlotzsky’s highlighted in bright red to draw attention to the shape. Colorful circles are even painted on building exteriors to carry the theme.

While the company kept its heritage color scheme of red and green, it introduced more contemporary shades of those colors and ditched its original Italian flag and wheat sheaves imagery. Higher-quality furniture, including soft seating, was added as part of the company’s commitment to offering a dining experience that’s “Lotz Better” than what customers would find at competitive restaurants.

The new Schlotzsky’s also features a new style of service. Previously, guests placed orders at the counter and were given a number. When guests’ food was ready, staff announced the number via microphone, and guests returned to the counter to pick up their orders. Now, after orders are placed at the counter, servers deliver them to the tables, eliminating the noise of microphones and the extra hassle for guests. “It’s taken about three years to get that change implemented through the entire system, and we’re pretty much there now,” Roddy says. “It came down to value at the restaurant. As the economy got worse, we had to improve our value. Everyone else started doing dollar menus, but that’s not the realm we play in. We had to increase the value, so we started delivering the meals to the tables. It’s another part of our brand filter: our service and our environment need to be ‘Lotz Better.'”

Along those same lines, minimal but impactful changes were made to the food itself. The Schlotzsky’s menu touts its original round toasted sandwiches on fresh-baked sourdough buns, as well as wraps, salads, gourmet pizzas and soups. Specifically, a new program featuring salads freshly made to order and plated on china replaced the company’s previous prepackaged grab-and-go options. “This was our biggest change from an operations standpoint,” Roddy says. “We had to tweak the recipes to be able to prepare them fast enough to order and added a salad table in the kitchen. We also expanded our pizza offering to include a 14-inch version in addition to our traditional eight-inch pizza.”

Co-Branding Delivers New Revenue Streams
Another major change at Schlotzsky’s since its acquisition by FOCUS Brands is the introduction of co-branding. All new units going forward as well as many existing units will feature not only the Schlotzsky’s regular menu, but also Cinnabon and Carvel branded products. Those concepts, also owned by FOCUS Brands, are seen as complementary to rather than competitive with Schlotzsky’s and so far have proven profitable additions to the mix, according to Roddy.

Initially adding them as separate “restaurants-within-a-restaurant,” the company has since switched to a fully integrated co-branding strategy. “It took us a few years to get it right, but the concepts are branded into the restaurants front and center. We tested separate kiosks to the side of the main order counter in some units, and in some we tested integrating them into the main counter,” he says. “We found that they did just as well if not better when integrated. It takes up a lot less space and doesn’t require any additional labor or supervision, so that’s the model we’re using going forward.”

With Schlotzsky’s own dessert menu already in place —cookies, cheesecake and carrot cake — company officials had some concerns that the new sweet additions might cannibalize sales. They didn’t. Rather, the addition of Cinnabon and Carvel sparked average check increases from about $7 for a standard sandwich-chips-and-drink order to $9.85 on average including the additional branded products. Overall, the move led to an increase in total sales of what Roddy calls the treat category from the previous 1.5 percent to 2 percent of sales to an average of 10 percent to 12 percent. To date, Cinnabon drives most of the incremental volume.

“What we saw was that Cinnabon wasn’t seen as a dessert but more as a treat and that our regular desserts were still ordered as desserts,” Roddy says. “About half of the Cinnabon sales are to people just coming in for a personal treat. A lot also go out as multipacks purchased to take home or back to the office to share. We’ve seen improvement in sales in midafternoons and evenings when people stop in for a Carvel ice cream treat.”

Roddy notes that no major equipment or layout changes were needed to facilitate the co-branding effort. “We just had to get creative. Some of the products took additional refrigeration and/or freezer space, but at the end of the day we had it.”

He adds that this year the company is opening up a Cinnabon inside of an existing Schlotzsky’s at the rate of one every four days. Existing franchisees also have the option to purchase Carvel licenses. All new Schlotzsky’s units going forward, however, will incorporate both Cinnabon and Carvel brands.

Equipment Ensures Speed of Service
Although Schlotzsky’s added value and a service element with table runners, the company also keeps the “fast” part of fast casual as an operational mandate. In particular, drive-thru service times must be three minutes or less. Equipment made to spec, with an emphasis on speed, enables that to happen. The company has partnered with key manufacturers for its ovens, in particular, and requires its franchise partners to install specified brands only.

“We’re looking at speed. The sandwich has to get to a certain temperature in a certain amount of time. There are only so many pieces of equipment that will work for us. Our vendors worked with our chef to get the specs just right, and we hold very tightly to those specs to ensure product consistency,” Roddy says.

Schlotzsky’s ovens include proofers and bakers for its signature round sourdough bread, as well as belted cheese-melting ovens that toast the sandwiches. Employees use a two-sided prep line, with one side used for preparing in-restaurant orders and the other side for drive-thru orders. At the start of the line, an employee assembles meats and cheeses from a refrigerated table onto the customer’s choice of bread and places it onto the melting oven’s conveyor belt. As the warm sandwich comes out the other end, another employee finishes it with the appropriate cold toppings and garnishes from another refrigerated table.

Other key pieces of equipment include slicers, refrigerated tables for salad prep, and other general prep tables, as well as refrigerators and freezers.

Roddy says the company’s new prototype brought no significant changes to the size, layout or flow of the back of the house. It also won’t impact overall unit opening costs.

In terms of equipment, Roddy notes that the company has taken out as much as it has added in most areas, so no big changes have been made. One exception, however, is ventilation hoods. Since Schlotzsky’s changed several years ago from gas ovens to electric, ventilation hoods are no longer required in most units, unless they’re required by a specific municipality.

New Growth Strategies Set in Motion
With its new prototype being rolled out systemwide, co-branding paying off and franchise activity heating up, Schlotzsky’s is poised for significant growth in the years ahead. The company’s goal is to nearly double to 600 units by 2015. It intends to get there by leaving another aspect of the old Schlotzsky’s behind: its approach to franchising. Namely, it is turning away from its legacy model of one- or two-unit, hands-on owner-operators.

“There are a lot of those folks still out there who we’re supporting,” Roddy says, “but that’s not the franchise partner that we’re doing agreements with today. We’re going after larger, well-capitalized partners that can develop multiple stores in a market. And unlike some chains, we require our partners to have industry experience.”

In addition to reimaging or remodeling all existing stores, the company expects to have 20 new stores open before the end of this year. Another 40 to 50 are in the pipeline for 2012, and even more momentum is building for 2013. While most of these new stores will be franchised, the company plans to add corporate stores at a rate of 10 percent to 15 percent of the franchise system’s growth.

Geographically, the company’s target markets are many and varied, but its growth strategy starts with filling in markets where it already has a presence. “In the past, there was a real shotgun approach to growth,” Roddy says. “Today, our strategy is to fill out the markets that we’re already in and grow contiguously from there. We’ve got the design right, our average unit volumes are right, and we’re ready to roll.”

Facts of Note:

  • Founded: 1971, part of FOCUS Brands since 2007
  • Headquarters: Austin, Texas
  • Menu signature: The Original® Sandwich
  • Service model: Fast casual
  • Services: Dine-in, drive-thru, takeout, catering, delivery
  • No. of units: 350+
  • Annual sales: $241 million
  • Typical locations: End cap or freestanding with drive-thru, some nontraditional (e.g., airports)
  • Key expansion markets: Dallas-Fort Worth, Denver, Phoenix, Atlanta, Orlando, Miami, Philadelphia, Nashville, Kansas City, Raleigh, Charlotte
  • Hours of operation: 10 a.m. to 10 p.m. daily
  • Average check: $9.85
  • Average unit size: 2,800 to 2,300 square feet
  • Total unit cost: $390,000 to $625,000
  • Average kitchen space: 1,400 square feet, or one-third of restaurant size
  • Total equipment investment/unit: $210,000 to $225,000 (with Cinnabon and Carvel)

Key Players

  • President: Kelly Roddy
  • Chief Marketing Officer: Greg Regian
  • VP Purchasing: Matt Diana
  • VP Restaurant Development: Jay Allen
  • VP Company Operations and Training: George Schaefer
  • VP Franchise Development/Sales: David Wheeler
  • VP Research and Development: Paul Freeman
  • Food Distributors: SYGMA, Gordon Food Service
  • Smallwares and Equipment: The Wasserstrom Company, Columbus, Ohio; Concept Services, Austin, Texas
  • Architect: The Roberts Group, Lexington, Ky.
  • Design: Back Lot Productions, Atlanta, Ga.

Source: FES Magazine

Schlotzsky’s featured on CNBC’s Worldwide Exchange

Schlotzsky’s president Kelly Roddy talks to Nicole Lapin on CNBC’s Worldwide Exchange, where he addresses Schlotzsky’s reimage efforts and future growth plans.

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