Friday, November 24, 2006

Schlotzsky's bought by Roark Capital Group

Here's the first part of the press release I rec'd:

ATLANTA, Nov. 21 /PRNewswire/ -- Roark Capital Group, an Atlanta-based private equity firm, announced today the acquisition of Schlotzsky's, Ltd. Schlotzsky's is a quick casual restaurant chain offering made-to-order sandwiches, soups, salads, and pizza. Founded in 1971 as the home of the Original(TM) toasted sandwich and headquartered in Austin, Texas, Schlotzsky's has approximately 365 franchised and company-owned locations generating $210 million of system-wide revenues throughout the United States and six foreign countries.

Schlotzsky's has become a wholly owned subsidiary of FOCUS Brands, Inc., a company owned by affiliates of Roark Capital Group. Also based in Atlanta, FOCUS Brands is the franchisor and operator of nearly 1,400 ice cream stores, bakeries, and cafes under the brand names Carvel, Cinnabon, and Seattle's Best Coffee. With its acquisition of Schlotzsky's, FOCUS Brands now has four franchise brands generating nearly $800 million in system-wide revenues through over 10,000 points of distribution in 50 states and 33 countries.

...we had one or two (?) Schlotzsky's in Fayette County. If I'm not mistaken both of them are now gone? I know the one in Fayetteville is closed. Along with the Wendy's in the middle of the city. Schlotzky's was a bit hard to see and find --- about the time you saw it you'd passed the entrance. It should have been a good location, right on Hwy. 85 going toward the Pavilion.

Anyway, I just thought it was interesting that they'd been bought out by a local group... and that the main company owned Carvel, which was my favorite of favorite ice creams when I lived in New York way back when.

Maybe someone will open up another Schlotzsky's in a better location (yes, lots more money involved in set up to get prime spots around here anymore!).

Anyone know what happened to Wendy's? That rather surprised me at first, but maybe it's another casualty of location. That's a tough place to leave if you're making a left out of the lot! We have so many choices any more that even the smallest problem can kill a good restaurant.

(I have to do a disclaimer after that last comment --- I am not a fast food type and rarely, if ever, go to Wendy's, Schlotzky's, McDonalds, etc. I'm more likely to go to Schlotzky's than any other type fast food restaurant as they have a few more healthy choices. Thus, my comments are more from an outsiders perspective. Those who frequented Wendy's & Schlotzky's may have a much better idea of why they bit the dust.)

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