New Pizza Store Open in Albany, GA

We are proud to announce a new store has opened in Albany, GA! Store #8046 opened

March 8th with great success! Here is the information on the new location:
Marco’s Pizza # 8046
2818-9 Old Dawson Rd
Albany, GA 31707
Phone: 229-435-4800

Visit the store page on Marcos.com
Owners: Marva and Princeton White of Marvelous Works, LLC

Congratulations to the new store owners!

New Pizza Store in Cedar Park, TX

We are proud to announce a new store has opened in Cedar Park, TX! Store #5004 opened

February 9th with great success! Here is the information on the new location:
Marco’s Pizza # 5004
2011 Little Elm Trail
Cedar Park, TX 78613
Phone: 512-250-3400

Visit the store page on Marcos.com
Owner: Paul Hollabaugh Rockin H Pizza, LLC.

Congratulations to the new store owner!

New Pizza Store in Loveland, OH

We are proud to announce a new store has opened in Loveland, OH! Store #1170 opened

February 9th with great success! Here is the information on the new location:
Marco’s Pizza # 1170
920 Loveland - Mareira Rd.
Loveland, OH 45140
Phone: 513-683-4888

Visit the store page on Marcos.com
Owners Rick and Brian Drescher, On the Rise, LLC.

Congratulations to the new store owners!

New Pizza Store in Dunwoody Georgia

We are proud to announce a new store has opened in Dunwoody, GA! Store #8051 opened

February 4th with great success! Here is the information on the new location:
Marco’s Pizza # 8052
4511 Chamblee Dunwoody Rd.
Dunwoody, GA 30338
Phone: 678-879-1888

Visit the store page on Marcos.com
Owner: Yafei Zheng Focus & Co.

Congratulations to the new store owners!

New Pizza Store in Murfreesboro, TN

We are proud to announce a new store has opened in Murfreesboro, TN! Store #8041 opened

January 29th with great success! Here is the information on the new location:
Marco’s Pizza # 8041
1208 East Northfield Blvd.
Murfreesboro, TN 37130
Phone: 615-895-9755

Visit the store page on Marcos.com
Owner: Jim Strachan, Tim and Marie Brown and Dan Omalley.

Congratulations to the new store owners!

Marco's Pizza Announces Launch of New Distribution Service

MARCO’S PIZZA ANNOUNCES LAUNCH OF NEW DISTRIBUTION SERVICE Marco’s Pizza Distribution Serves More Than 100 Stores, Plans for Multiple Centers TOLEDO, OHIO – Jan. 13, 2010 – Marco’s Pizza (Marco’s Franchising, LLC), an authentic Italian pizza company headquartered in Toledo, Ohio, has announced the launch of a distribution service. Marco’s Pizza Distribution, LLC (MPD), opened its first distribution center at 1435B Holland Rd. in Maumee, Ohio. The center serves more than 100 Marco’s Pizza locations in the Midwest Region and will add stores and territories over time. Additional distribution centers are planned as Marco’s continues to grow. “Marco’s Pizza Distribution signifies the next phase of growth at Marco’s,” said Jack Butorac, president and CEO of Marco’s Pizza. “With more than 900 new stores signed and in development, it is crucial for Marco’s to maintain product quality and consistency in every store as the company expands. MPD will help us accomplish this efficiently and also cost-effectively for our franchisees.” Marco’s Pizza Vice President of Purchasing Don Vlcek, who also serves as president of MPD, outlined three distinct benefits to franchisees. “MPD will help protect product quality,” he said. “Only items approved by Marco's own product team will be in our warehouse and on our trucks. MPD is also able to provide increased service to Marco's Pizza stores because we only have one customer. Improved delivery service means that store operators can spend more time focused on sales, quality and efficiencies.” Lastly, Vlcek noted that MPD offers franchisees a chance to improve profitability. “A distribution company with a single focus can achieve greater cost efficiency, monitor all product costs, purchase larger volumes at better prices and manage inventory levels to take advantage of predicted fluctuations in commodity markets,” he said. “MPD will publish its P&L statements quarterly and provide rebates to participating franchisees at the end of the year,” said Butorac. “The distribution service will be another asset to franchisees as Marco’s growth continues.” Marco’s Pizza operates 200 stores in 17 states and the Bahamas. To inquire about franchise opportunities, visit www.marcos.com or e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it . About Marco’s Franchising, LLC (www.marcos.com) Headquartered in Toledo, Ohio, Marco’s Pizza (Marco’s Franchising, LLC) is the fastest-growing pizza chain in the U.S. The company was founded in 1978 by Pasquale (“Pat”) Giammarco and is committed to making Ah!thentic Italian pizza with fresh ingredients. Marco’s is ranked one of the 25 largest pizza chains in the country by PMQ’s Pizza Magazine and the top franchise in financial strength by AllBusiness. Marco’s has grown from its roots as a beloved Ohio brand to operate 200 stores in 17 states and the Bahamas.

New Pizza Store in Savannah, Georgia

We are proud to announce a new store has opened in Savannah, GA! Store #8048 opened

December 27th with great success! Here is the information on the new location:
Marco’s Pizza # 8048
4521 Habersham Street
Savannah, GA 31405
Phone: 912-349-6960

Visit the store page on Marcos.com
Owner: Brian Moushon Atlantic Pizza Ventures, LLC.

Congratulations to the new store owners!

Brands to Keep Your Eye On in 2010

January 11, 2009 Brands To Keep Your Eye On In 2010 The fallout of retail rents and shuttered restaurants will finally give way to sizeable expansion pipelines for many concepts in 2010, even though most companies fell short of their goals last year. Smashburger, Checkers Drive-In Restaurants Inc., Jersey Mike’s, Marco’s Pizza, Uno Chicago Grill, Pizza Patrón, Bruegger’s Bagels, Hurricane Grill & Wings and Rumbi Island Grill all aim to ramp up expansion in the new year. Smashburger sees a slew of multi-unit franchisees signing on, and Checkers increases development through existing franchisees and its flexible model. Jersey Mike’s works on an immense deal, while Marco’s offers financing help and a new distribution facility to its franchisees. Uno expands through three prototypes. Pizza Patrón envisions a busy year ahead with a new model, new monthly deals and a shift in brand positioning. Bruegger’s looks into co-branding and acquires another chain. Hurricane will grow by more than 30%, while Rumbi works on some franchise deals. Most forecasts show restaurant traffic to be weak until at least the second half of the year, with many experts not anticipating stabilization until 2011. Personal consumption is actually predicted to be up this year and even though it’s only expected to rise 0.3%, any jump is a good sign. In 2009, personal consumption dropped 1.1%. Recent NPD numbers show consumer spending at restaurants fell 2% and total industry traffic is down 4%. High national unemployment in excess of 10%, elevated consumer-saving rates, lower disposable incomes, tightened credit, a $3.4B shortfall in lending to franchise businesses, lower grocery store prices and cost-saving measures by businesses will continue to have a negative effect on restaurant traffic, revenue and earnings. This causes a lot of restaurant companies to hide their heads in the sand and wait for it to be over, but some chains are not giving up and will actually increase expansion efforts in order to have greater saturation in the marketplace in time for the turnaround. Most of these companies are showing flat to positive SSS and they are working on some new brand initiatives, franchising packages, models, menus and promos that should help keep sales up. Lower rents and higher TIs will help open the door for concepts that are in the financial position to grab some great sites this year. Financing will remain tight, but multi-unit, well-capitalized franchisees shouldn’t have too much of a problem if they can plunk down 40% to 50%. These nine companies are our selections for significant growth in 2010. Smashburger Expected openings in 2010: 80 to 100 Actual openings during 2009: 34 There is no stopping the newest fast-casual industry darling that kicked off 2009 with 10 stores and plans to have almost 150 by this December. Smashburger sold more than 200 franchised units last year alone, which includes some sports stars and major franchising companies. Count on the company to add franchise units in Las Vegas, Los Angeles, San Diego, Sacramento, Calif., Orlando, Fla., Lexington, Ky., Texas, South Dakota, Missouri, Louisiana, Arkansas, Wyoming, New York and Michigan this year. Corporate growth is expected in Chicago and the Washington, D.C., Baltimore and Virginia areas. President Scott Crane believes his brand is in the perfect niche and is growing at a great time thanks to the lowest real estate rates he’s seen since the mid-1990s. Look for Smashburger to test online and call-ahead ordering, as well as a table delivery system to speed up service. Units are 2,000 s.f. and buildout is down 10% to 15% over last year at $360K. AUVs range $1.1M to $1.2M and the average check is just below $8. Continued on Next Page For use of original recipient only. It is illegal to forward or otherwise distribute without permission. Page 2 Crittenden’s Restaurant Insider™ Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2010 Crittenden Research Inc. Brands To Keep Your Eye On In 2010… Continued from Page 1 Checkers Expected openings in 2010: 64 to 68 Actual openings during 2009: 40 With a 60% to 70% increase in expansion compared to 2009 and a flexible model, Checkers is one company to watch out for in 2010. SVP and Chief Development Officer Lynette McKee notes that a good portion of new sites will come through existing franchisees, which she feels says a lot about the company. McKee also believes Checkers is in a good position to take advantage of low-priced real estate and is confident franchisees will be able to find financing. Development will remain east of the Mississippi, including major markets in New York and Florida. Units run 680 s.f. to 750 s.f. with a double drive thru, although the 830-unit company will also fill in existing markets with end caps and inline sites. The initial amount to open a Checkers is $476.7K to $617.2K. There is also a push for nontraditional units, including college campuses and airports. AUVs are $800K. An average check at the QSR burger chain is $5.93. Jersey Mike’s Expected openings in 2010: 60 Actual openings during 2009: 49 Fast-casual sub chain Jersey Mike’s will move forward with a goal of 15% growth for the year and is happy with flat SSS at the end of 2009. COO Mike Manzo hints at something big in the works on the nontraditional development front that could increase the number of new stores opening this year and next. The 412-unit brand will expand in its existing 28 states, especially in the newer Chicago and SoCal markets that it entered last year. Keep an eye out for a new menu rollout this year and some big promos and giveaways such as Super Bowl parties and trips. The company also works closely with the community, charities and local food banks. An average unit is 1,600 s.f. and end caps are preferred although freestanding or inline work too. Buildout is running $70/s.f. to $100/s.f. and the average check is $8.50. Marco’s Expected openings in 2010: 60 Actual openings during 2009: Approximately 38 With the help of a number of innovative franchise financing packages and tools, Marco’s could actually surpass its development goals for the year since it already boasts around 880 signed stores. Development will continue in the 200-unit company’s 17 existing states. Watch for Marco’s to enter Kansas, Nebraska, New Mexico and Wyoming this year. President and CEO Jack Butorac notes the recession has reduced cost of buildout by 25% to 30% to between $20.5K and $130K. He is excited about Marco’s Pizza Distribution that will launch this month in Maumee, Ohio, and deliver to around 160 stores. This should help protect franchisee profitability, ensure consistency of high quality ingredients and represents a new phase of growth for the company. DTO units are 1,200 s.f. and the dine in model comes in at 2,400 s.f. AUVs are $600K. An average check is $16.75. The company had SSS up 1% at corporate stores for 2009. Uno Chicago Grill Expected openings in 2010: At least 52 Actual openings during 2009: Approximately 50 Preliminary expansion plans are nearly the same as last year but will most likely pick up as Uno will add units in core markets through a multi-pronged approach with three prototypes. The profitable Uno Due Go model has seen SSS up 5%, so expect more of this brand. Traditional Chicago Grills will open in Pennsylvania and Northern California this year and count on 1 new Express unit per week. A hybrid Uno Due Go is in the works at Cleveland State University. Express locations will come to Duke Medical Center in North Carolina, another medical center in Springfield, Mass., and the New England Aquarium in Boston. Look for lots of LTOs to roll out this year and SVP of New Concept Development Jamie Strobino expects restaurants to be in a better place by year’s end. Buildout on the traditional 7,000-s.f. casual-dining model is $2.5M. AUVs are $2M for traditional units and $1,100/s.f. at Uno Due Go. An average check ranges from $5 to $15, depending on the model. Uno’s portfolio includes 200 full service, 300 Expresses and 2 Due Gos. Continued on Next Page For use of original recipient only. It is illegal to forward or otherwise distribute without permission. Crittenden’s Restaurant Insider™ Page 3 Quotation not permitted. Material may not be reproduced in whole or in part in any form whatsoever. Copyright © 2010 Crittenden Research Inc. Brands To Keep Your Eye On In 2010… Continued from Page 2 Pizza Patrón Expected openings in 2010: 40 Actual openings during 2009: 12 Pizza Patrón looks forward to a busy year with 14 locations in active construction set to open during Q1, which already surpasses last year’s development. New markets for 95-unit Pizza Patrón include Atlanta, New Mexico, Utah and hopefully Chicago. Look for more of its new QSP (quick service pizza) model that has a drive thru, with 1 planned for Dallas by next month. SSS were positive for all four quarters of 2009 and the company sold more pizzas in 2009 than 2008. After the success of the Amigo Pizza deal last year, the company launches Paquetazo, which will be a different discounted deal every month. Director of Brand Development Andy Gamm is enthusiastic about the company’s new tag line of “Latin Life Enjoy” that will shift the theme of the brand to celebrating the Latin lifestyle and culture to attract more non-Hispanic customers to the restaurants. The initial investment for 1,200-s.f. carryout unit is $175K to $237K and the 900-s.f. to 1,100-s.f. QSP runs $225K to $400K. AUVs are $450K and the average check is $7. Bruegger’s Expected openings in 2010: 27 Actual openings during 2009: 18 Bruegger’s launched a financial program early in 2009 with Diamond Financial to help franchisees get loans that should stimulate 2010 growth. Expansion will focus on Atlanta and existing markets, including Tampa, Fla. Also, the company’s recent acquisition of wholesale coffee distribution company Timothy’s World Coffee and its sister brands mmmuffins and Michel’s Baguette should keep it occupied during the year and added 137 units to the portfolio. Operations and purchasing can be shared between the brands, leading to lower costs for Bruegger’s. This opens up co-branding opportunities for Bruegger’s with those concepts, as well as new products such as a better coffee offering. CEO Jim Greco will pick up the pace of product innovation this year. Units are 2,200-s.f. end caps or downtown urban locations. Look for a next generation-designed prototype to roll out in April that will be the same size, but with a new look. Around 50 remodels are planned. Buildout is $425K. AUVs are around $725K for the 296-unit chain. Hurricane Grill & Wings Expected openings in 2010: 12 Actual openings during 2009: 6 to 8 The 30-unit company is primed for growth under new owners led by CEO John Metz who acquired Hurricane by purchasing its secured debt and assets in December 2008. Hurricane is now debt free and will fund corporate growth internally. Metz spent the majority of 2009 reevaluating the brand’s business model and honing in on larger units to maximize seating. The previous owners targeted slim 2,000-s.f. inline spaces and Metz notes that these sites see the same sales per seat ratio but can’t command Hurricane’s $1M to $1.25M AUVs in that square footage. Sales average $10K/seat and now units will run 3,000 s.f. to 4,000 s.f. with roughly 125 to 150 seats. Look for Hurricane to fill in Florida and to break into New York this year, with sites envisioned for Long Island, Albany and Westchester. Metz noticed that the rent market in Florida broke about four months ago. One development in Fort Lauderdale, Fla., that was asking $30/s.f., got returned to the lender and is now under new management that agreed to $14/s.f. for the same site. Also, watch for Hurricane to ink a deal for SoCal and to increase its presence in Arizona. Conversion sites run $200K to $400K and Metz is seeing TIs from $20/s.f. to $40/s.f. An average check is $10. Rumbi Island Grill Expected openings in 2010: 7 Actual openings during 2009: 2 Although one of the smaller companies on this list, 2010 should be a big year for Rumbi as it increases development, enters new markets and signs on more multi-unit franchisees. Look for a unit in Rancho Santa Margarita, Calif., this month and Logan, Utah, in March. More locations are in the cards for the Golden State in La Habra and Newport Beach, as well as 2 in Los Angeles. A multi-unit deal will most likely be finalized in Texas sometime this year. President and CEO Stuart Gee also has some interest in Idaho, Florida, Kentucky and San Diego. He will continue to evolve the menu and promos this year and thinks once unemployment stabilizes consumers will start spending money again. Units are 1,500 s.f. to 2,000 s.f. and a recent conversion in Mission Viejo, Calif., was opened for $150K. AUVs at the 25-unit Rumbi are right around $1M. An average check at the tropical fast-casual chain is under $9.

Where do you go when you can't find the dough?

Your franchisor. To keep their growth from stalling, many franchisors are offering unprecedented levels of franchisee assistance (see "Turn to Your Franchisor"). Some are making loans themselves, while others are discounting franchise fees or letting new franchisees pay their fees over time. "Franchisors are offering incredible deals," says business-acquisition specialist Ted Leverette of Partner On-Call Network in Florida. "Some are waiving fees completely. Choose a franchisor who's willing to share the risk with you." At the very least, your franchisor should help you beef up your loan paperwork. For instance, some franchisors are purchasing bank credit reports on their company from FranData, which explain franchisor financials and present the concept in a positive light. Get a UBLOC. The acronym stands for unsecured business line of credit. Don Johnson, president of loan broker Diamond Financial Services in New Jersey, says UBLOCs have become popular, especially for lenders who need less than $100,000, an amount for which a traditional SBA loan is difficult to obtain. You have to have a credit rating around 700 to qualify for a UBLOC, Johnson says, though a track record of past business success may get you in with a lower score. Rates are higher than with an SBA loan, but Johnson says UBLOC approval is usually quicker--a day or two versus weeks for a traditional loan Microloans. If you need less than $35,000 in funding, many lenders won't want to help. But you can seek a microloan from lenders ranging from the SBA to nonprofits such as Accion USA or Kiva. Johnson says it is easier to qualify for the mini-SBA than a traditional loan. Rates tend to be competitive, and a microloan can give you some operating cash while you build up your credit to qualify for a larger loan. Your landlord or your vendor. Anxious landlords may be generous with lease terms or even pay for needed store buildouts to make a deal happen. At Siegel Financial Group in Conshohocken, Pa., president Nate Greenberg says he recently worked with a quick-serve restaurant franchisee whose landlord offered nine months' free rent and paid $250,000 toward building the franchisee's facility. "In retail," he says, "landlords are hurting and need to do things to make sure their space gets a tenant." By the same token, vendors may be desperate to sign up new accounts. Partner On-Call's Leverette suggests asking vendors if they'd be willing to provide goods free or at a steep discount in exchange for an equity stake in your company. If not, ask for long initial terms--say, net 90 days instead of net 30--which would allow you to sell the goods first and pay the vendor off with customers' money. Liquidate your assets. Do you have a boat, a vacation cabin, fine art, a life insurance policy with equity, or other valuable assets? Consider skipping the arduous loan process and resulting interest costs and sell your assets for cash. "I have a saying: 'Don't climb the mountain if you can walk through the valley,' " Greenberg says. Another popular option is rolling over a 401(k) retirement plan, he notes. If structured properly, this can be done without tax penalty. Companies such as Benetrends help franchisees set up a new corporate structure and company 401(k). The old 401(k) is rolled into the company retirement plan, from which it can be borrowed tax-free for business use. Liquidate the business's assets. If you're buying an existing franchise, sell company assets to generate needed cash. For instance, Leverette knows a buyer who bought an existing moving and storage company, negotiating a deal to pay half the purchase price upfront and half a month later. Once the buyer took possession of the business, he leased trucks and sold off the company vehicles, generating the money to pay the rest of the purchase cost. Sluggish bank lending has thrown a wrench into many franchisors' growth plans. To help franchisees move forward, many have created financial assistance programs to help open new units. For instance, Marco's Pizza franchisee Pamela Bone, 43, took advantage of the Marco's in-house lending program to open her location in Columbia, Ga., last February. The former bank finance manager had a $200,000 bank loan in process for a month when the bank changed its lending criteria and suddenly declined her application because she didn't have restaurant experience. The in-house financing is a "captive lease," in which Marco's leasing company, MFS Leasing, lends money to franchisees to cover construction, equipment leasing and other store-opening costs. Marco's chief financial officer, Ken Switzer, says the lease program began two years ago, just before bank financing became difficult to get. Because Ohio-based Marco's controls the process, it can approve loans quickly. Bone says she likely would have lost her site if she'd had to start over in applying for traditional bank loans. Last summer, Marco's added another financing vehicle for franchisees, an equity fund that will raise up to $5 million to be used for financing franchisee store costs. Franchisor Edible Arrangements in Connecticut is also jumping into both captive leasing and the venture-finance business, says CEO Tariq Farid. The company's venture fund has $5 million raised privately, and Farid hopes to grow it to $10 million. So far, Edible's leasing program is available only to Edible franchisees, who can get up to $100,000 to cover equipment costs. But Farid Capital Corp. may eventually broaden to offer financing to the franchising industry in general, Farid says. Other chains, including Florida-based CruiseOne, are offering straightforward loans to cover startup costs. Senior vice president and general manager Dwain Wall says his travel company began offering new franchisees financing for $7,300 of their $9,800 franchise fee in August. Because CruiseOne uses a home-based business model, the fee usually constitutes most of the startup cost. The loan carries an interest rate of prime plus 6 percent--not exactly cheap, but moderate in today's lending climate. With more than 500 locations and plans to open up to 100 more in the next 12 months, Wall says it's important to help CruiseOne franchisees get started to keep growth on track. "A lot of people don't have $10,000 right now and don't want to cash in their 401(k) either," he says. "We need to help them with the upfront fee until they get on their feet." "Hard" money. This is a finance-industry term for getting a loan from a private party. It's usually expensive--interest rates range from 4 percent to 8 percent above the going rate for traditional loans, Leverette says. Online peer-lending sites such as raisecapital.com and prosper.com facilitate such loans by letting many lenders contribute a small amount to make up your loan total. Whether you get hard money from a person or an online site, rates tend to be high. But if you have nowhere else to turn, either one can provide a source of quick cash. Family and friends. They're listed last for a reason: Borrowing from people you love is fraught with peril. But with retirement accounts down, relatives might be interested in an entrepreneurial investment opportunity, says Siegel Financial's Greenberg. If you do go the friends-and-family funding route, be sure to thoroughly document the loan terms and ownership stakes involved. Websites such as Virgin Money and ZimpleMoney make it easy to track payments. Many franchisors have stepped up their financing assistance to help new franchisees get started despite the tight lending market. Here's a sampler of franchisor offers. --C.T. Franchisor: CruiseOne Location: Fort Lauderdale, Fla. Offer: Providing loans for up to $7,300 of the $9,800 franchise fee, which usually makes up the bulk of a new franchisee's startup cost. Franchisor: Edible Arrangements Location: Wallingford, Conn. Offer: Up to $100,000 in equipment leasing financed through new company subsidiary Farid Capital Corp., which has raised $5 million privately and hopes to expand the fund to $10 million. Franchisor: Marco's Franchising Location: Toledo, Ohio Offer: Marco's leasing company, MFS Leasing, lends money to franchisees to cover construction, equipment and other store-opening costs. Last summer, a Marco's affiliate also introduced an equity fund that plans to raise $5 million to lend to franchisees, granting Marco's a minority stake in the franchise until the funding is repaid. Franchisor: Million Dollar Hole In One Location: Valrico, Fla. Offer: Willing to finance $10,000 of the $25,000 franchise fee. Franchisees repay the loan gradually as they purchase tickets wholesale from the franchisor for the hole-in-one contests the franchise puts on at golf courses. Franchisees pay a higher rate for the tickets until the loan is repaid. Franchisor: Volvo Construction Equipment Rents Location: Asheville, N.C. Offer: The carmaker's construction-rental division utilizes a finance affiliate, Volvo Financial Services, helping speed loan approvals. The franchisor enhanced its finance offerings in 2009, offering several months of no payments, depending on the economy. It also upped its loan limits to include loans for working capital and other intangibles, so qualified franchisees can now tap Volvo to finance up to their full startup cost of more than $5 million

New Marco's Pizza Store Fairfield, OH

We are proud to announce a new store has opened in Fairfield, Ohio! Store #1162 opened

November 30th with great success! Here is the information on the new location:
Marco’s Pizza # 1162
6330 Pleasant Ave
Fairfield, Oh 45014
Phone: 513-858-3500

Visit the store page on Marcos.com
Owner: Thomas Schoenfeld of Major Moves, LLC.

Congratulations to the new store owners!