Einstein Bros Opens Six Units in First Quarter

New World Restaurant Group, Inc. continues to grow its core Einstein Bros quick-casual brand, adding five licensed units and one company-owned store during the first quarter of 2002.

Licensed units opened during the quarter included the chain's first locations in an airport and a hospital, as well as three additional locations on college campuses. The new company-owned location opened in Colorado Springs in mid-February, and many additional potential sites are now in the real estate pipeline.

Since the licensing program's inception in mid-2001, a total of 14 locations have been opened on campus and other venues across the country in partnership with such leading dining services managers/providers as ARAMARK and Sodexho. The Company expects an additional 16 licensed Einstein Bros units to open by the end of this year, bringing the total to 30. Einstein stores are typically in the 2,200-square-foot range, while licensed units are generally around 800 square feet. Licensed locations typically feature a 'best of' offering including the chain's most popular gourmet sandwiches, salads, and baked sweets, along with its signature bagels, cream cheeses and coffee.

Among the licensed locations opened during the quarter, the first Einstein Bros airport unit debuted in late February at Detroit's Metro Airport, where it is one of approximately 70 retail and restaurant shops in the new Midfield Terminal, joining such names as Brooks Brothers, PGA Tour Shop, Starbucks and McDonalds. Licensee Concessions International owns and operates food, beverage and retail facilities in nine airports throughout the U.S. and in the Virgin Islands.

At quarter's end, Sodexho opened a licensed location at the University Hospital Health Systems in Cleveland, OH, representing Einstein's entree into a medical facility. The unit is located in the hospital's atrium, just off the main cafeteria.

In mid-January, Sodexho opened licensed Einstein units at Carthage College in Kenosha, WI, and the University of Tampa in Florida. Also in January, ARAMARK opened a licensed unit at the University of Central Florida in Orlando.

Noting that approximately 60% o sales in Einstein Bros stores are now generated from the non-breakfast day-part, he added: "While opening new corporate and licensed stores is integral to our business strategy, we are also steadily increasing same-store sales. We are dedicated to smart and strategic growth, both in number of stores and share of customer base."

New World is a leading company in the quick-casual sandwich industry. The Company operates stores primarily under the Einstein Bros and Noah's New York Bagels brands, and primarily Franchises stores under the Manhattan Bagel and Chesapeake Bagel Bakery brands. As of April 1, 2002, the Company's retail system consisted of 457 company-owned stores and 293 franchised and licensed stores. The Company also operates three dough production facilities and one coffee roasting plant.