Schlotzsky's
| File:Schlotzsky logo.png | |
| Company type | Wholly owned subsidiary |
|---|---|
| Industry | Delicatessen |
| Founded | 1971 |
| Headquarters | 301 Congress Downtown Austin, Texas |
| Products | Submarine sandwiches, sandwiches |
| Parent | FOCUS Brands |
| Website | www.schlotzskys.com |
Schlotzsky's is a privately held franchise chain of restaurants, specializing in sandwiches, headquartered in Downtown Austin, Texas. 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.
History
Don and Dolores 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 first sandwich was based on the Muffuletta sandwich.[2]
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, 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, an affiliate of private equity firm Roark Capital Group, parent company of Moe's Southwest Grill, Carvel and Cinnabon.[13]
Headquarters
Schlotsky's has its headquarters in the 301 Congress building in Downtown Austin, Texas.[14]
Before being headquartered at 301 Congress, Schlotzsky's had its headquarters at 203 Colorado in Downtown Austin.[15] In 2004 Cypress Realty Advisors bought a plot of land including the Schlotzsky's headquarters from former Schlotzsky's CEO John Wooley and his brother, preventing the land from going on a foreclosure auction block.[16]
Slogan
The slogan is "funny name, serious sandwich". The original slogan was "just one sandwich, it's that good."
References
- ^ Deli chain Schlotzsky's is sold again, Austin American-Statesman, November 21, 2006.
- ^ a b Smith, Amy (2004-10-08). "Original History". Austin Chronicle. Retrieved 2008-10-15.
- ^ 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.
- ^ "Contact Us." Schlotzsky's. Retrieved on February 25, 2010.
- ^ "Company." Schlotzsky's. May 11, 2000. Retrieved on May 6, 2010.
- ^ Novak, Shonda. "Sale averts auction of downtown Wooley site." Austin American-Statesman. October 6, 2004. Retrieved on May 6, 2010. "The site includes Schlotzsky's headquarters and the Austin Children's Museum."
External links
- Schlotzsky's Official website