RISE - Menu Monitor

Schlotzsky's
Headquarters
200 Glenridge Pnt Pkw Suite 200, Atlanta, Georgia 30342 USA
Tel: (404)255-3250 Fax: (404)255-4978
www.schlotzskys.com
Ownership: Private
Segment: Limited Service Other Sandwich
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 220,000 225,800 270,000
Company-owned ($000) 18,000 18,700 25,000
Franchised ($000) 202,000 207,100 245,000
U.S. Number of Units 365 378 444
Company-owned 14 16 22
Franchised 351 362 422
International Sales ($000) - 6,600 4,500
International Units - 16 15
Average Sales/Unit ($000) 585 573 525
Concept Positioning |
Schlotzsky's is a limited-service sandwich concept open for lunch, dinner and snacks seven days a week, offering walk-up,
counter and takeout service. All units display deli cases of meats, cheeses and private label Schlotzsky's products. To ensure
freshness, sandwich buns and pizza crusts are baked from scratch daily in each unit. Lunch accounts for approximately 65%
of sales; the rest come from the dinner daypart. Roark is parent company of FOCUS Brands Inc., which now operates as the
parent company of Schlotzsky's.
Since 1996, the company has focused on the development of freestanding prototypes of 3,200–3,700 sq. ft. with seating for
60–80. Each prototype unit features an on-premise bakery, a drive-thru lane and many also have outdoor seating. Currently,
52% of units are freestanding and 27% are end caps; new prototypes have higher than average sales. This new design
features antique Chicago-style brick with extensive wood and masonry. Using old-world colors with warm and friendly textures,
the new units strive for the cluttered look of an old Italian grocery store.
Important to the chain are its private label products, ranging from chips, meats and cheeses to salad dressings, mustard and
olive oil. Over 100 products carry the label. Some are also sold separately in stores for home consumption. In a new alliance
with Wal-Mart, Schlotzsky’s brand potato chips debuted in 450 stores.
Schlotzsky's first opened in Austin, TX, in 1971 and began franchising in 1977. The chain was sold in 1981 to brothers John C.
and Jeffrey J. Wooley. In 1995, Schlotzsky’s, Inc. went public. Due to slumping sales and a considerable load of debt,
Schlotzsky's filed for Chapter 11 bankruptcy protection in 2004. Later that year, Schlotzsky's finalized the sale of all its assets
to Bobby Cox Cos. for $28.5 million. In late 2006, Atlanta-based Roark Capital Group announced its acquisition of Schlotzsky's
for an undisclosed sum.
Menu Positioning |
Schlotzsky's varied menu includes 15 hot sandwiches, wraps, salads and pizzas. Signature items include The Original
sandwich, The Philly sandwich, Asian Almond Chicken wrap, Zesty Albacore Tuna wrap, Thai Chicken pizza, Smoked Turkey
Chef's Salad and Tuscan Herb pizza. Kid's meals feature a cheese pizza, cookie and drink for $2.99 or a Ham & Cheese
sandwich for $2.99. Sides include potato salad and chicken salad. Desserts include cookies, cheesecake and brownies. No
alcohol is served. Menu prices range from $3–$10. Checks average $7.
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