Spicy Pickle (SPKL) Acquires Four New Corporate Locations
ORIGINAL ALERT INFO :
ALERT DATE & PRICE: SEP 21, 2007 / $.69 ALERT EMAIL:CLICK HERE CURRENT PRICE: $1.12 CURRENT % ROI: +62%
COMPANY CONTACT INFO:
Spicy Pickle Franchising Inc.
B90 Madison St., Suite 700
Denver, CO 80206 Phone: (800) 711-1902 Fax: (303) 297-1903 Email:
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Web:www.spicypickle.com
INVESTOR RELATIONS INFO:
Spicy Pickle Phone: (800) 711-1902
Spicy Pickle Acquires 4 Locations From Franchisees & Accelerates Growth of Company Owned Restaurant Program
DENVER, CO, Feb 27, 2008
Spicy Pickle (OTCBB: SPKL) fast casual restaurants announced today it has recently acquired four locations from former franchisees. Three of the restaurants are in the Denver area at the following locations:
1) 10320 Federal Boulevard, Federal Heights, CO, 80260
2) 8923 E. Union Avenue, Greenwood Village, CO, 80111
3) 2043 S. University Boulevard, Denver, CO, 80210
4) 123 College Avenue, 1F, Ft. Collins, CO, 80524
The acquisition of these 4 restaurants brings the current company owned restaurant total to 5. Two others are under construction, one in Ft. Collins and the other in the Denver area, with opening target dates in late spring or early summer, bringing the current total of company owned restaurants to 7.
Marc Geman, CEO of Spicy Pickle Franchising, Inc., commented: "We raised capital in mid December primarily earmarked for the expansion of our company owned restaurant program. The acquisition of these existing restaurants allows us to ramp up this program at a more rapid pace."
Furthermore, Mr. Geman stated: "As is the case with many new franchise companies we began with less experienced franchisees in our local market where the first restaurants were located. As our concept gained recognition we attracted franchisees that have the capability to develop multiple restaurants in a given territory. There are tremendous efficiencies of multiple unit ownership in a market, such as availability of trained personnel, coordinated marketing efforts, efficiences of product procurement and communications. We believe that these same efficiencies apply to corporate operations of restaurants, especially in Colorado where we have the infrastructure in place. Our goal in the corporate restaurant program is both economic and operational. Ownership of corporate restaurants will give us an opportunity to fine tune and test our menu, operations and procedures before using them system wide with all of our franchisees.
By acquiring these four restaurants from our early franchisees, we fast track the growth of performing assets and deliver very significant top line growth. As owner we reflect revenue from restaurant operations, which is a 20 fold increase over the royalty we show when the restaurant is franchised. We have the infrastructure in place to manage multiple restaurants. These new locations insure 2nd quarter revenues that will be substantially higher than the same reporting period in 2007."
Mr. Geman said, "In order to be successful we need to grow both our corporate and franchise businesses side by side, gaining recognition and developing a following. The recent lease signings and corporate restaurant developments continue that momentum. There is nothing complicated about what we need to do. We serve great food and stress customer service. As long as we continue to do that and find the right locations our growth will be steady and continuous."
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