While Others Struggle, McAlister’s Franchisee Plots Growth

Journal Record:

At a time when rising fuel and food prices threaten to strangle many eateries, McAlister’s Deli franchisee Bothwell Saxton Restaurants of Tulsa has charted a 2-year growth plan to almost triple its size.

Bothwell will open its 13th deli on June 9 at 21st Street and Yale Avenue in midtown Tulsa. It has 3 others under construction for 2008 debut, following its contractual plan to add 4 delis per year in 4 Oklahoma and Kansas markets, hitting 30 by 2012.

6 of those will come in Oklahoma City, starting in 2009.

‘We think there’s room for another 3 to 4 in Tulsa,’ said President Craig Bothwell.

His company also is in negotiations to acquire other McAlister franchisees.

‘We’re working on 2 deals right now,’ he said.

The growth comes despite a national slowdown in the dining sector, as rising fuel costs spur customers to scale back their restaurant experiences. Dining establishments also face a squeeze from wholesale food price inflation, which the National Restaurant Association said has reached its highest point in 27 years.

‘Our business is actually up,’ said Bothwell, attributing that to McAlister’s market positioning and lunch focus, which accounts for 65% of its revenue. ‘People seem to still be eating out for lunch.’

Read on.