Franchise News Release: Dallas , TX - (Aug-28-2007)

Baker Bros Signs Five-Unit Texas Deal

Baker Bros American Deli, a fast-casual deli chain headquartered in Dallas, inked a second area development agreement with one of their own area developers to open five more Franchise units in western Texas. The two multi-unit agreements with Lewis BB Restaurants will give the area developer exclusive rights to open a total of nine Baker Bros franchises.

Lewis BB Restaurants initially signed on to develop four Baker Bros restaurants in Texas’ Lubbock, Potter and Randall counties in December 2006. Their first franchised location opened in Amarillo in May of this year. A second location in Amarillo and another in Lubbock are both scheduled to open this fall.

The new multi-unit agreement grants Lewis BB Restaurants rights to open five more Baker Bros Franchises in Wichita Falls, Abilene, San Angelo, Midland and Odessa, Texas. Lewis BB Restaurants plans to open all nine Baker Bros units by 2011.

“The first Amarillo location has been very well received, actually setting a company record for opening store sales,” said Ken Reimer, Baker Bros’ founder and CEO. “In fact, our franchisees have been so happy with their success that they quickly wanted to capitalize on it by securing franchise rights for the surrounding markets. We are very happy for them, and we wish them continued success as they grow their business.”

Founded in 1999 by Restaurant industry veterans Reimer and Tom Dahl, Baker Bros currently operates eight company stores in Dallas and has more than 30 franchised stores open or in development in Las Vegas, California, Texas, Arkansas, and South Carolina.

Headquartered in Dallas, Baker Bros American Deli specializes in award-winning salads, specialty sandwiches on artisan breads, stuffed baked potatoes and gourmet pizzas.

Baker Bros offers a selection of 14 specialty sandwiches and build-your-own deli sandwiches made with premium meats, cheeses and fresh produce. Their proprietary breads come in four varieties – farm bread, whole wheat, light rye and eggspun. Eight salads are offered in regular or half portions, and six baked potatoes and eight gourmet pizzas prepared on focaccia crust round out the menu.

Corporate locations averaged $1.3 million in annual sales in 2006 with average guest checks of around $7.50. The average guest count is 3,200 customers a week. Corporate locations have seen same-store sales growth of 6.9 percent, 12.2 percent and 10 percent in the last three years with very little advertising.

Baker Bros units range from $416,000 to $686,000 with the average totaling around $500,000 per unit. Franchise fees are $25,000 per location. Franchisees are required to open a minimum of three stores within end caps of powerhouse shopping centers, near medium-density offices or close to a mix of retail and residential development.

In the next five years, Baker Bros plans to have 60 to 70 units in operation with several airport locations.