Mega-Deal for Schlotzsky's Banks on Operator's Skills
After five years spent reviving and rebranding a tired concept, Schlotzsky’s is expanding west from its Texas and Middle America roots with a vengeance. They’ve just inked a multi-unit development agreement for 170 restaurants—yes, 170—in the Los Angeles area with Moe Vazin, who actually was pushing for even more stores.
“When people have asked him, Why did you do 170? he said, Because they wouldn’t let me do 300,” says Schlotzsky’s President Kelly Roddy. Over six months of discussion, Roddy became convinced that Vazin is a unique operator who runs the Buy Low grocery chain in California, along with one of the largest plastics manufacturing plants in the United States.
“They’re used to running a large, multi-unit business, and they’re well-capitalized,” Roddy says. The agreement runs into “several million dollars,” although Roddy wouldn’t disclose the figure. How long will it take to open them all? “We are saying nine to 10 years. Moe is saying five years,” Roddy says with a laugh. Vazin is already working land deals. “Wow, no one moves this quickly,” Roddy says.
Watch for the full story about the Schlotzsky’s deal, along with details from Vazin about how he’ll pull it off, in an upcoming issue of Franchise Times.