Rock Bottom's Casual Dining Concepts Set to Reach 200 Units by 2008

Rock Bottom Restaurants, Inc. is emerging as a powerhouse in casual dining through an innovative growth strategy that teams together its Franchising and corporate expansion efforts. Plans call for more than 100 new Old Chicago restaurants and 10 new Rock Bottom Restaurant and Brewery locations in the United States by 2008.

Rock Bottom Restaurants will focus on growing its only Franchise concept, Old Chicago, a 28-year-old local's favorite "well scrubbed joint" that offers 110 beers and Chicago-style pizza, with Multi-unit franchise agreements combined with an aggressive corporate expansion plan. Growth of all other concepts, including Rock Bottom Restaurant and Brewery, will occur with additional corporate locations.

Buck Warfield, Senior Vice President of Development for Rock Bottom Restaurants, Inc., said the strategy is based on two key priorities: development and concept integrity, noting, "The plan will allow Rock Bottom Restaurants to expand at an aggressive pace, without abandoning its core values or ongoing commitment to run restaurants that benefit our guests, our communities and ourselves.

"While we focus on efforts to aggressively expand through a combined franchising and corporate growth model, we strive to maintain the integrity of our family of restaurant brands," Warfield said. "This proven business strategy brings franchise and corporate development efforts under the same roof to create a mainstream 'team' approach to growth. The plan allows for parallel growth by providing identical services and benefits to corporate stores and franchise owners."

A New Approach
As a part of the new strategy, Warfield will step up efforts to introduce the Old Chicago concept to restaurateurs looking to expand their existing business portfolios. Rock Bottom has signed multi-unit franchise agreements to put 70 Old Chicago locations in 13 states by 2010, while continuing to bring new franchise partners on board. Recently, Rock Bottom signed a contract with a Scott, Randy and Steve Stuck, current franchisees of both Taco Bell and TGI Friday's, to open 15 new Old Chicago locations in Michigan. An agreement was also secured with Paul Friedberg, Larry Kagley and David Stephens, a group of former Applebee's and existing Burger King franchisees to open 15 units in Cincinnati and Dayton, Ohio as well as Lexington and Louisville, KY.

"This marks the beginning of a new growth period for Rock Bottom Restaurants. We have laid the groundwork for expansion on the corporate level and started cultivating new territories through multi-unit franchising agreements," said Warfield. He further noted that on the corporate front aggressive expansion plans are in place for Old Chicago in Colorado, Kansas, Nebraska, Wisconsin, Illinois and Central Florida. Rock Bottom Restaurant and Brewery is looking to grow its existing presence in Colorado, Ohio, Indiana, Pennsylvania, Virginia, as well as expand into new markets including Nevada and Washington, D.C.

To build a foundation for this new growth spurt, Rock Bottom recently re-aligned and expanded its corporate staff. Rock Bottom appropriated a corporate executive to spearhead company growth efforts. Warfield, former Vice President of Franchising for Old Chicago was recently appointed to the position of Senior Vice President of Development for Rock Bottom Restaurants.

In his new position, Warfield is responsible for the growth of all Rock Bottom brands through both corporate and franchise development. Earlier this year, Rock Bottom also established an in-house Legal department, to accelerate lease negotiations surrounding new restaurant openings.

Additionally, Rock Bottom Restaurants is adding to its already flexible 'menu' of expansion options for restaurateurs looking to open an Old Chicago restaurant. In addition to the existing 6500 square foot prototype design, a new free-standing 6,000 square-foot Old Chicago prototype will be finalized in the second quarter of 2004.

About Rock Bottom Restaurants, Inc.

Old Chicago and Rock Bottom Restaurant and Brewery are a part of Rock Bottom Restaurants, Inc., which currently owns and operates 54 Old Chicago restaurants, and 34 brewery restaurants operating under the names "Rock Bottom Restaurant & Brewery," "ChopHouse & Brewery" and "Walnut Brewery." The company also owns and operates "SingSing," a dueling piano bar concept with three locations. In addition, Rock Bottom's franchising division supports the operation of eight Old Chicago franchise restaurants.