Schlotzsky’s-Cinnabon-Carvel opens at Camp Pendleton

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Schlotzsky’s Camp Pendleton will kick off its grand opening April 1st at 9:00 a.m. with a day of fun-filled events, including a prize wheel, Schlotzsky’s eClub giveaways and more. The first 100 active duty members to purchase a CinnaPack of six Cinnabon Classic rolls from 9:00 a.m. to 10:00 a.m. will receive one free The Original (small) sandwich a week for a year. 

The opening ceremony will begin at 10:00 a.m. followed by a free lunch of small sandwich combos available to all guests with a valid military I.D. from 11 a.m. to 1 p.m. as well as a free small Carvel Ice Cream cone from 4 p.m. to 6 p.m.

Building 51096, Area 51, Basilone Road at San Onofre Center

See you there!

Schlotzsky’s-Cinnabon-Carvel opens in Placerville, CA

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We are so excited to announce the grand opening of our first location in Northern California. Don’t miss the grand opening of the new Schlotzsky’s-Cinnabon-Carvel in Placerville, CA on Thursday, July 18. 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, including a photo booth, so get there early!

3023 Forni Road, Placerville, CA 95667

530-621-3025

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

Big Bet

Schlotzsky’s mega-deal puts SoCal in hands of neophyte ‘zee

By Beth Ewen

Schlotzsky’s is betting everything in its new Southern California market on one man: Moe Vazin, who owns two American Maid manufacturing plants and six Buy Low grocery stores that do a brisk deli business—but who has never operated a restaurant.

The Austin, Texas-based franchisor has inked a deal for 170 restaurants—yes, 170— with Vazin, who actually was pushing for up to 300 stores. “This one is by far the largest,” says Schlotzsky’s President Kelly Roddy about the deal. “We try to keep them under 30, and we actually try to keep them in the range of 10.”

But Roddy decided to end discussions with multiple prospects, each of whom wanted to open 25 or so restaurants, and put them all in Vazin’s hands, for a territory that includes Ventura, Los Angeles and Riverside counties, stretching from just south of Santa Barbara all the way to the Nevada/Arizona borders.

“There are very few people who have the business background to handle the volume of 170 restaurants, that have that capital to build out that quickly. It takes a very unique person to do a deal that large,” Roddy says.

Vazin says he likes Schlotzsky’s new format, which includes Cinnabon cinnamon rolls and Carvel ice cream, along with the flat round buns that define a Schlotzsky’s sandwich. All three are owned by Focus Brands in Atlanta, in turn owned by private equity firm Roark Capital, and Schlotzsky’s is the first Focus company to sell all three products under one roof.

“The new format is gorgeous,” Vazin says, adding he found Roddy and his management team to be “very, very receptive” and “very open-minded. We hit it off really well.”

Vazin says he’ll use funds from his operating companies to get the first five or so stores opened, and will seek bank loans and perhaps financial partners down the road. He’s working now to sign letters of intent for locations, and wants to get five to seven opened this year.

“They were looking for operators who were aggressive and had a long-term plan. I told them I’m not going to dabble in it,” he says, adding he’s downsizing his grocery store operation in order to focus on the restaurants. He’ll continue operating his American Maid plants in the Los Angeles area, which make small housewares such as plastic pitchers and storage tubs.

Vazin also sells imported goods through a related company, VMI International, and has real estate holdings tied to his family’s dealings in the supermarket business.

Many franchisors avoid cutting mega-deals with a single operator, especially someone new to the brand, and some scoff at the idea that all the stores will ever be built out. Roddy, too, acknowledges the risk in turning away seven or so operators who would all start building at the same time.

But Roddy is convinced. “Trust me, we had a lot of conversations about that,” Roddy says. “They’re used to running a large business, a multi-unit business, and they’re well capitalized.” That last point may have been most convincing, given the difficult times most franchisees face in raising money.

How long will it take to get those 170 stores open? “We are saying nine or 10 years. Moe is saying five years. I wouldn’t be shocked to see Moe get them open in five,” Roddy says.

Source: Franchise Times

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 President Kelly Roddy on FOX Business News

Kelly Roddy talks to FOX Business News about Schlotzsky’s expansion plans and the success we found with co-branding with Cinnabon and Carvel Ice Cream.