Togo's Inks Deals In Idaho And Utah To Develop 13 New Restaurants
- April, 24 2014
Togo's Eateries, Inc. announced it has signed franchise agreements to develop five restaurants in Eastern Idaho and eight locations in Salt Lake City, Utah. In 2014, the brand will also mark its entry into Colorado, Idaho, and Utah with restaurant openings planned over the next few months.
"We have strategically been opening new western markets for expansion, and are excited to bring our much loved sandwiches to a growing fan base in Idaho, Utah and Colorado," said Tony Gioia, chairman and CEO of Togo's Holdings, LLC. "The signing of these agreements coupled with franchisees securing sites for their restaurants has been an outstanding way to kick off the first quarter of 2014."
Existing franchisee Ben Massimino has expanded his portfolio with the sandwich franchise and will develop eight additional Togo's restaurants in Utah for a total of 14 locations. Last summer, Massimino signed the company's first multi-unit franchise agreement in the state. His first Salt Lake City area restaurant is expected to open in Sandy in May on South Street, and a lease for his second restaurant in South Jordan has been signed, which is planned to open in early 2015.
Additionally, new franchisees Ty and Debbie Jenkins will develop five restaurants in Eastern Idaho, which include the cities of Twin Falls, Idaho Falls, Pocatello and Rexburg. They are in the process of looking for their first site and projected to open late 2014. The company's first Idaho restaurant, in the greater Boise area, will open in Meridian in the latter part of the year.
"We are still actively recruiting passionate, qualified and loyal franchisees to grow with us, in both our core and emerging markets," added Gioia. "If you're a West Coast Original, West Coast Transplant or West Coast Dreamer looking to open a sandwich franchise, we want to hear from you!"
Togo's is on track to open 25 new restaurants this year and is currently scouting locations in Colorado Springs, Colo. New markets open for franchise development in 2014 include Seattle and Tacoma, Wash.; Denver, Colo.; Tucson, Ariz.; and numerous markets in California.
Togo's, which has more than 325 locations open and under development throughout the West, has experienced four consecutive years of same-store sales increases. Last year, the company launched a multi-unit franchise development incentive program to drive expansion in key growth markets. Both new and existing franchisees who sign a new agreement for three or more locations will receive reduced royalty fees for the first two years for each new restaurant that is developed in Washington, Oregon, Idaho, Utah, Colorado, Nevada and Arizona. Additionally, franchisees will benefit from $10 million for remodels and transfers, as well as $5 million to build new restaurants.
At Togo's, traditional restaurants experienced average unit sales in excess of $633,000, with 50 percent averaging over $799,000, and 25 percent averaging over $930,000. To become a part of the Togo's team and be your own boss, candidates should possess liquidity of $150,000 for a single restaurant and a net worth of $300,000. Area developers looking to develop three or more restaurants should have liquidity of $450,000 and net worth of $900,000. Special incentives are available for qualified franchisees interested in opening three or more restaurants.
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