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Schlotzsky’s pipeline development nears 100 new locations

Schlotzsky’s pipeline development nears 100 new locations

The fast-casual restaurant franchisor announced the signing of 75 deals for drive-thru integrated locations in 2021.

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The 75 deals Schlotzsky’s has signed so far cover the states Arizona, New Mexico and Oklahoma, putting it well on the path to reach 100 locations by the end of 2021. The brand has also recognized the need to serve customers off-premises and will integrate a drive-thru into 99 per cent of new locations.

In celebrating its 50th anniversary, Schlotzsky’s created a new prototype location that offered guests the opportunity to use a drive-thru to meet demand for off-premises access, which has led to positive growth for the brand.

“Over the past few years, we’ve recognized the need to evolve our restaurant design and provide flexible options to franchisees to develop in competitive real estate markets and urban areas,” said Tory Bartlett, chief brand officer of Schlotzsky’s.

“Since we launched our new prototypes and placed an added emphasis on accessibility and convenience, we’ve seen an increase in signed deals and overall franchisee interest.

“With more than 75 signed deals newly-added to the pipeline and additional ones on the way, we’re excited about the future at Schlotzsky’s and look forward to bringing our concept to new markets across the country.”

Since 87 per cent of products were being consumed off-premises, the brand considered this crucial aspect when launching its new prototype location. Consequently, Schlotzsky’s came up with the Design 1000 and Design 1800 prototypes in Q4 2020 to introduce increased off-premises capabilities.

The Design 1000 prototype includes a drive-thru window on each side of the premises and a curbside pickup window, while the Design 1800 prototype has a single drive-thru and 35 seats in the dining area.

Currently, around 85 per cent of Schlotzsky’s locations have a drive thru. The brand plans to open virtually all future locations with a drive-thru if possible, and has streamlined the menu; a well-received change by customers.

Schlotzsky’s franchisee JJ Ramsey opened the 1800 design location in Derby, Kansas and a modified version in Mountain Home, Kansas.

“It’s exciting to be a key player in Schlotzsky’s growth and evolution and we’re all looking forward to debuting the new prototype with enhanced operational efficiency,” said JJ Ramsey, franchise owner of 20 Schlotzsky’s locations.

“Meeting our guests’ wants and needs remains the number one priority and is critical to survive in today’s competitive market. We’ve learned that off-premises access is important to our guests and the new prototypes will drive sales for that important revenue channel.”

Schlotzsky’s has 329 locations across the U.S. in 24 states with plans to expand more. The brand is still seeking franchise opportunities in Missouri, New Mexico, North Carolina, South Carolina and other key markets in the Midwest and Southeast.

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