Schlotzsky's
From Wikipedia, the free encyclopedia
Schlotzsky's is a privately held franchise chain of restaurants specializing in sandwiches. As of November 20, 2006, Schlotzsky's has nearly 380 franchised and company-owned locations in 36 states in the United States and in six other countries around the world, generating $210 million in systemwide revenue.[1] Most of the locations are across the south and southwestern United States.
[edit] History
Don and Delores Dissman founded the company in 1971 in Austin, Texas.[2] The initial menu consisted of a sandwich of mixed meats, cheeses and black olives toasted on a freshly made sourdough bun. The sandwich was called "The Original."[3] The bun was claimed to be Muffuletta bread.
In 1981, the company had 100 franchise stores and $18 million in sales. Real Estate investors, John and Jeff Wooley and Gary Bradley purchased the company for less than $3 million. Bradley split with the Wooleys in 1982. Bradley took the real estate business and the Wooleys kept Schlotzsky's.
The Wooleys expanded Schlotzsky's menu to include panini, specialty pizzas, toasted wraps, freshly tossed salads, gourmet soups, and other items.[4] The Wooleys also took the company public on December 15, 1995, trading as BUNZ on NASDAQ.[5]
The chain peaked in 2001 with 759 stores[6] and over $400 million in sales, when same store sales started to plateau. In 2003, the company posted an $11.7 million loss. The Schlotzsky's board of directors relieved the Wooley brothers from day-to-day management on June 17, 2004 and named Sam Coats as the new chief executive officer of the company.[7] Under pressure, the Wooleys resigned from the board in July 2004.[8]
Schlotzsky's filed for Chapter 11 bankruptcy protection on August 3, 2004 and its stock was delisted from the NASDAQ two days later. The number of locations fell to 445 when the assets of the company were sold for $28.5 million at auction in December 2004 to Bobby Cox Cos. Inc., ending Schlotzsky's nine years as a public company.[9][10] The new owners operate the business under the corporate entity Schlotzsky's, Ltd., and began streamlining the menu.[11] Under new ownership and management, Schlotzsky's has strengthened franchise operations and is licensing new franchisees in Texas and other states. The company also plans to open several new corporate-owned stores.[12]
On November 21, 2006, Schlotzsky's was acquired by FOCUS Brands, parent company of Carvel and Cinnabon.[13]
[edit] Notes
- ^ Deli chain Schlotzsky's is sold again, Austin American-Statesman, November 21, 2006.
- ^ Original History, Austin Chronicle, October 8, 2004.
- ^ Our Rise to the Top, Schlotzsky's. Retrieved October 26, 2005.
- ^ Can Schlotzsky's Be Saved?, Austin Chronicle, October 8, 2004.
- ^ The Life of a Sandwich, Austin Chronicle, October 8, 2004.
- ^ Schlotzsky's new owners want to simplify, Austin American-Statesman, January 11, 2005.
- ^ Schlotzsky's board fires Wooley brothers, Austin American-Statesman, June 17, 2004.
- ^ The Beard Gambit, Austin Chronicle, October 8, 2004.
- ^ Fort Worth company buys Schlotzsky's, Austin American-Statesman, December 9, 2004.
- ^ Schlotzsky's next move, Austin Business Journal, September 23, 2005.
- ^ Schlotzsky's new owners want to simplify, Austin American-Statesman, January 11, 2005.
- ^ Restaurant chains bounce back from bankruptcy, Houston Business Journal, December 9, 2005.
- ^ Focus Brands buying Schlotzsky's, Austin Business Journal, November 20, 2006.
[edit] External links
- Schlotzsky's Official website
