Cinnabon Develops First Hand-Held Food Item

Cinnabon Inc. is rolling out the company's first food item that can be eaten on the go, the CinnabonStix. The Atlanta-based company, acquired by AFC Enterprises in 1998, designed the product with the intent to gain additional snack category market share. The CinnabonStix introduction is part of a three-pronged approach to fuel unit and sales growth. In addition to the new hand-held product, the brand is re- imaging 60 bakeries in 2000 and continuing an aggressive worldwide Franchising effort.

"Before the CinnabonStix, we weren't an option for the guest who didn't have time to sit down and enjoy a fresh-baked product from Cinnabon," said Gregg A. Kaplan, Cinnabon president. "Today, we tap into an entirely new segment of the market that we never had access to before."

CinnabonStix are hand-made and freshly baked from the oven every 30 minutes. The product has a Danish-dough base and is made with the company's proprietary Makara cinnamon. CinnabonStix are available in quantities of five and ten.

In the past 15 months, Cinnabon signed commitments to build 443 bakeries over the next five years, which will double the brand's size. The commitments include 112 U.S. locations in 22 states and 331 international locations in 16 countries and U.S. territories. The brand opens its first location in Scotland this week.

Cinnabon is the world's leading cinnamon roll retailer. The company operates and Franchises 404 bakeries worldwide. The bakeries are in 39 states and 24 international locations. Founded in Seattle in 1985, Cinnabon bakeries operate in high-traffic malls, transportation centers, airports and supermarkets. The bakeries are located in 500- to 1,500-square-foot areas and serve fresh cinnamon rolls made with special premium cinnamon and topped with sweet, rich, cream cheese-based frosting. Cinnabon had system-wide sales of $150 million in 1999.

Its parent company, AFC Enterprises is one of the world's largest operators and franchisors of restaurants, bakeries and cafes with more than 3,400 locations in 27 countries worldwide. AFC positions itself as the Franchisor of Choice by offering a portfolio of high-value brands and unparalleled support and services for its Franchise partners. AFC had system- wide sales of more than $2 billion in 1999.