AJC:
Atlanta-based Focus Brands, which has made a name for itself by selling coffee, sweets and treats, is getting into the sandwich business.
Focus, operator of Carvel ice cream, Cinnabon and the international stores of Seattle’s Best Coffee, is adding Schlotzsky’s to its corporate portfolio for an undisclosed price. The quick-casual chain, based in Austin, Texas, is known for made-to-order sandwiches, soups, salads, and pizza.‘The sandwich segment is very, very large and many of the players are very, very similar with their offerings,’ Steve Romaniello, Focus president and chief executive officer, said during a telephone interview on Monday from Austin, where he was telling the news to company employees and franchisees.
Schlotzsky’s was attractive because ‘it is highly differentiated and unique,’ he said.
Schlotzsky’s, which has 365 stores in the US and 6 in foreign countries, is actually being bought by Focus parent, Roark Capital Group, a private equity firm headquartered in Atlanta.
However, Schlotzsky’s, which generated revenue of about $210 million in 2005, will operate under the Focus Brands umbrella. The brand will remain headquartered in Austin.
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