metro
10-16-2007, 07:38 AM
Schlotzsky's plans to add nine city stores
By Trisha Evans
Business Writer
It still has a funny name, but The Original toasted sandwich isn't the only thing Schlotzsky's is serious about.
Schlotzsky's has major expansion plans for Oklahoma.
The sandwich chain plans to double the number of locations in the Oklahoma City metro area within the next five years. Oklahoma City has seven locations now, and Schlotzsky's plans to add nine more.
"This is our homeland,” said D'Wayne Tanner, vice president of franchise sales. "This is the place where the brand is known the best, so it just makes sense for us to try and find ways to increase our presence in this area.”
The chain was born in Austin in 1971 and brought to Oklahoma by franchisee Nat Hardt, who opened a Norman restaurant in 1978.
Hardt, also a franchise consultant for Schlotzsky's Inc., has seen the brand through ups and downs, and in past years, the brand has struggled. Atlanta-based Focus Brands Inc. bought the company last year. Hardt said he has confidence the new owner, also the franchisor of Cinnabon and Carvel Ice Cream and Cinnabon, will revive the brand.
"I think that Schlotzsky's is a really attractive opportunity, especially now with the new franchisor,” Hardt said. "I think they really have their finger on the pulse of what's right for the brand.”
Hardt said getting the right locations and sound marketing will be key to the brand's growth in Oklahoma.
The Tulsa area will see similar growth from the quick-service chain.
Playing to its strengths
Sandwich shops like Schlotzsky's are just one slice of the $500 billion per year restaurant industry, but it's one that's been growing. Restaurant chains like Subway, Quiznos and locally-owned City Bites have mushroomed in the last couple decades.
Hardt said large sandwich chains like Subway take up a fair chunk of the market, and have equally huge ad budgets, but there's certainly room for others.
"Why I think that Schlotzsky's is able to compete in that kind of market is, I really think our food is better than anyone elses,” he said.
Although the company hasn't marketed heavily in the state in the last decade, Hardt said Schlotzsky's still benefits from good brand recognition in Oklahoma. Now it's time to "tap into that brand awareness and get more sandwiches in people's hands,” he said.
Besides brand awareness, Tanner said strong performance and a good overall economy make Oklahoma a key market for Schlotzsky's.
Nationally, Focus Brands plans to open 50 new locations a year. Schlotzsky's has more than 350 locations in 35 states. Besides Oklahoma, the company will target Georgia, Texas, Colorado, Arizona, Tennessee, North Carolina, South Carolina, Missouri and Virginia for growth.
Looking for franchisees
With the growth the company plans, it'll need people to man the operations.
Schlotzsky's is calling for single-unit and group franchisees who have a background in the restaurant industry.
"We want to make certain we protect our current franchisees and their margins, then also just grow responsibly to better the consumers as well,” Tanner said.
"We believe this really is a model for wealth creation,” he added.
By Trisha Evans
Business Writer
It still has a funny name, but The Original toasted sandwich isn't the only thing Schlotzsky's is serious about.
Schlotzsky's has major expansion plans for Oklahoma.
The sandwich chain plans to double the number of locations in the Oklahoma City metro area within the next five years. Oklahoma City has seven locations now, and Schlotzsky's plans to add nine more.
"This is our homeland,” said D'Wayne Tanner, vice president of franchise sales. "This is the place where the brand is known the best, so it just makes sense for us to try and find ways to increase our presence in this area.”
The chain was born in Austin in 1971 and brought to Oklahoma by franchisee Nat Hardt, who opened a Norman restaurant in 1978.
Hardt, also a franchise consultant for Schlotzsky's Inc., has seen the brand through ups and downs, and in past years, the brand has struggled. Atlanta-based Focus Brands Inc. bought the company last year. Hardt said he has confidence the new owner, also the franchisor of Cinnabon and Carvel Ice Cream and Cinnabon, will revive the brand.
"I think that Schlotzsky's is a really attractive opportunity, especially now with the new franchisor,” Hardt said. "I think they really have their finger on the pulse of what's right for the brand.”
Hardt said getting the right locations and sound marketing will be key to the brand's growth in Oklahoma.
The Tulsa area will see similar growth from the quick-service chain.
Playing to its strengths
Sandwich shops like Schlotzsky's are just one slice of the $500 billion per year restaurant industry, but it's one that's been growing. Restaurant chains like Subway, Quiznos and locally-owned City Bites have mushroomed in the last couple decades.
Hardt said large sandwich chains like Subway take up a fair chunk of the market, and have equally huge ad budgets, but there's certainly room for others.
"Why I think that Schlotzsky's is able to compete in that kind of market is, I really think our food is better than anyone elses,” he said.
Although the company hasn't marketed heavily in the state in the last decade, Hardt said Schlotzsky's still benefits from good brand recognition in Oklahoma. Now it's time to "tap into that brand awareness and get more sandwiches in people's hands,” he said.
Besides brand awareness, Tanner said strong performance and a good overall economy make Oklahoma a key market for Schlotzsky's.
Nationally, Focus Brands plans to open 50 new locations a year. Schlotzsky's has more than 350 locations in 35 states. Besides Oklahoma, the company will target Georgia, Texas, Colorado, Arizona, Tennessee, North Carolina, South Carolina, Missouri and Virginia for growth.
Looking for franchisees
With the growth the company plans, it'll need people to man the operations.
Schlotzsky's is calling for single-unit and group franchisees who have a background in the restaurant industry.
"We want to make certain we protect our current franchisees and their margins, then also just grow responsibly to better the consumers as well,” Tanner said.
"We believe this really is a model for wealth creation,” he added.