Archive for March, 2010

Last week, Tulsa-based Mazzio’s LLC announced it had signed a franchise partnership with Fransmart development company to help expand Mazzio’s and its fast casual Oliveto Italian Bistro. But the company release failed to focus on the real news – the explosive potential of lesser-sung concept, Oliveto, and its perfect positioning for consumers with strapped pocketbooks, nutritional awareness, and increasing food savvy.

Oliveto only has one company-owned and one franchise location to parent company Mazzio’s 172 so far, but Mazzio’s CEO Gregory R. Lippert, formerly of Seven-Up Co. and Fazoli’s, said he saw the signs of today’s casual dining slowdown while planning the not-quite fast casual concept.
 
The chain’s conception started roughly five years ago (and first opened in Tulsa in 2008). By that time, Lippert said, it was apparent that casual dining was in “remission.” Two of the biggest problems were that people didn’t want to spend as much to eat out, and they were wary of the huge portions. 

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April 5 is National Deep Dish Pizza Day!  First designated in 2009 in celebration of this iconic Chicago contribution to American cuisine and the 65th Anniversary of its creator, UNO®, it offers an opportunity to bite into the delicious, buttery crust that has made it a favorite the world over.

In celebration, UNO’s famous individual-sized deep-dish pizzas are just $5 with the purchase of any regular entree from Saturday, April 3 through Monday, April 5 at participating locations with a coupon, which can be found at http://www.unos.com/.

UNO’s history is closely entwined with America’s love affair with pizza. UNO founder Ike Sewell opened his first restaurant in Chicago in 1943, determined to change pizza’s reputation as a snack food. Using traditional, authentic Italian recipes, he added generous quantities of the finest meats, fresh cheeses, ripe vegetables and flavorful spices, to make pizza a hearty meal. It was the start of an American tradition — the Chicago Deep Dish Pizza!

Now famous the world over, UNO and its signature deep dish pizzas have expanded to over 165 locations worldwide, including such exotic locales as Puerto Rico, South Korea, the United Arab Emirates, Honduras, Kuwait, and Saudi Arabia.  

Today, the food, fun and celebration roll on. Americans consume 4.4 million UNO deep-dish pizzas every year; which is enough to feed the entire population of Ireland!  Each year, UNO customers consume enough mozzarella cheese to create nearly 10 Boeing 747 commercial airplanes, including its 400 passengers. UNO also uses enough sauce each year to fill an entire Olympic-sized pool and enough sliced pepperoni to leave a trail from the restaurant’s birthplace in Chicago to its current corporate headquarters in Boston.

“We’re proud of our 65-year heritage of handcrafted, deep-dish pizza, which is the foundation of everything we do,” says Frank Guidara, UNO CEO. “When you combine our heritage of deep-dish pizza with our broad array of delicious, healthy fare, it’s easy to see why the UNO brand continues to grow both here and abroad.”

About UNO:

Based in Boston, Uno Restaurant Holdings Corporation includes 165 company-owned and franchised full-service Uno Chicago Grill restaurants located in 26 states, the District of Columbia, Puerto Rico, South Korea, the United Arab Emirates, Honduras, Kuwait and Saudi Arabia.  The company also operates a fast casual concept called Uno Due Go®, a quick serve concept called Uno Express®, and a consumer foods division which supplies airlines, movie theaters, hotels, airports, travel plazas, schools and supermarkets with both frozen and refrigerated private-label foods and branded Uno products.  For more information, visit http://www.unos.com/.

A fast-food outlet has reportedly become the first in Britain to sell pizzas with an extra special topping – zebra.

Yummy Yummy Italia in Burnley, northern England, launched the controversial pizza after owner Arash Fard, 33, visited London and saw frogs’ legs pizzas on the menu, local newspaper the Lancashire Telegraph reported.

The unusual meat toppings are bought from “alternative meats” supplier Kezie, which says the ingredients are ethically sourced from responsible farms.

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Until she moved to Canada three years ago, Khayala Karanon had never seen a pizza, let alone scarfed a slice.

Today she flips over the stuff and can assemble a medium, three-topping, standard issue pie in two minutes flat. She hopes to be rolling in the dough when she and her husband open a Pizza Pizza franchise in London, Ont. this year.

“We have McDonald’s back home but I never had pizza there,” says Karanon of her native Azerbaijan.

“I really love it.”

So how did she rise to the occasion?

It’s little-known that besides U of T, York and Ryerson, Toronto has another “university” of sorts that provides what its students figure is a well-rounded education in the life of pie.

Sure, it sounds a bit cheesy. But just as McDonald’s has Hamburger U in Oak Brook, Ill., fast food competitor Pizza Pizza – the largest pizza chain in Canada – has PPU in Etobicoke, an academic and culinary training centre that boasts 3,500 “graduates” a year.

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Aside from religion and politics, one of the few subjects that triggers fierce debate is pizza. As a $32 billion industry and a major part of the American diet, it’s not a frivolous subject. But the definition of a perfect pizza depends on whom you’re talking to.

“Asking people how they like their pizza is like asking them what they want in a man or a woman; what their preferences are in a mate,” said Brewer Stouffer, co-owner of the three popular Roman Candle pizzerias and a keen observer of the pizza wars.

Battle lines are clearly drawn. It’s those who love thin, crisp crusts versus those who crave cushiony crusts that are the consistency of bread pudding. Fans of heavy toppings can’t fathom why others prefer crusts topped only with a few exquisite morsels. Other combatants regard “weird” toppings such as arugula and pineapple with derision, and stick with the classics like pepperoni and sausage.

One only need refer to the menus at two of the Madison area’s most popular pizza joints to get a sense of the difference. In one corner, weighing in at five pounds, is Glass Nickel’s top-selling “Cardiac Arrest,” a 16-inch beast holding a pound of cheese and what seems like half-a-hog’s worth of meat (pepperoni, crumbled bacon, Boar’s Head ham and sausage).

In the other side of the ring is a Roman Candle’s svelte but powerful contender, the best-selling Pestoral, a Kermit the Frog-colored pizza with pesto, roasted red peppers, kalamata olives, feta, tomatoes and artichokes on a thin crust.

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First lady Michelle Obama, daughters Malia and Sasha and their grandmother Marian Robinson hit New York City on Wednesday, lunching with several guests at Grimaldi’s, a legendary pizzeria located beneath the Brooklyn Bridge.

One of the restaurant’s waiters, Rafal Harajda, said the group had three large, thin-crust pizzas (one sausage, one pepperoni and one plain) and one small vegetarian pizza, asking for mushrooms, sweet peppers and onions, plus a side of anchovies and soft drinks. The tab: $89.30, plus what Harajda called a “very generous tip.”

Here’s where the story gets ugly: Afterward Harajda was quoted in a New York Times blog as saying: “They loved everything. I think they said it was better than Chicago pizza.”

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Sbarro, Inc. (the “Company”) announced today results of operations for the fourth quarter and the fiscal year ended December 27, 2009. The Company’s detailed results are included in its Annual Report on Form 10-K, which was filed with the SEC on March 26, 2010.

Fourth Quarter Financial Results

Revenues were $94.0 million for the quarter ended December 27, 2009 as compared to revenues of $98.7 million for the quarter ended December 28, 2008. The decrease in revenues was due to a 4.6% decrease in Company-owned comparable-unit sales, lost sales from stores strategically closed and a decline in royalties on franchise sales, offset by sales generated by new Company-owned stores opened in 2009 and 2008. Domestic franchise comparable-unit sales declined 6.2%. The decrease in Company-owned and domestic franchise comparable-unit sales primarily reflects continued reduced mall traffic throughout the United States as a result of the current economic environment. Without consideration for foreign currency fluctuations, international franchise comparable-unit sales declined 4.4%. The strengthening of the U.S. Dollar relative to virtually all foreign currencies added an additional 2.7% decline in international franchise comparable unit sales.

EBITDA, as calculated in accordance with the terms of the Company’s bank credit agreements, was $16.2 million for the quarter ended December 27, 2009 as compared to $17.1 million for the quarter ended December 28, 2008. The decline was primarily the result of the decline in Company-owned comparable-unit sales and royalties on franchise sales, partially offset by cost savings initiatives and reduced commodity costs during the quarter.

As discussed in Exhibit A, EBITDA is a non-GAAP financial measure that management believes is an important metric for us to report to our investors, as we consider it a helpful additional indicator of our ability to meet future debt obligations and to comply with certain covenants in our borrowing agreements which are tied to this metric. Exhibit A includes a reconciliation of EBITDA to net loss, which is the most directly comparable financial measure under United States Generally Accepted Accounting Principles (“GAAP”). Exhibit A also identifies adjustments to EBITDA that are provided for under the Company’s bank credit agreements.

Year to Date Financial Results

Revenues were $339.3 million for the year ended December 27, 2009 as compared to revenues of $359.2 million for the year ended December 28, 2008. The decrease in revenues was primarily due to a 4.9% decrease in Company-owned comparable-unit sales, lost sales from stores strategically closed and a decline in royalties on franchise sales, offset by revenues generated by new Company-owned stores opened in 2008 and 2009. Domestic franchise comparable-unit sales declined 5.6%. The decrease in Company-owned and domestic franchise comparable-unit sales primarily reflects reduced mall traffic throughout the United States as a result of the current economic environment. Without consideration for foreign currency fluctuations, international franchise comparable-unit sales declined 7.8%. The strengthening of the U.S. Dollar relative to virtually all foreign currencies added an additional 13.7% decline in international franchise comparable unit sales.

EBITDA, as calculated in accordance with the terms of the Company’s bank credit agreements, was $44.7 million for the year ended December 27, 2009 as compared to $43.7 million for the year ended December 28, 2008. The improvement was primarily the result of cost savings initiatives and reduced commodity costs, partially offset by the decline in Company-owned comparable-unit sales and royalties on franchise sales.

The Company was in compliance with all covenants as calculated in accordance with the terms of its bank credit agreements for the twelve months ended December 27, 2009.

Peter Beaudrault, Chairman of the Board, President and CEO of Sbarro, commented, “Our results for the quarter and the year continued to be impacted by the challenging economic environment; however, as a result of aggressive cost controls and lower commodity costs, we were able to produce higher year over year bank EBITDA for 2009.”

Conference Call Scheduled

Sbarro, Inc. will host a conference call on April 15, 2010 at 11:00 AM Eastern Daylight Time to discuss results of operations for the quarter and year ended December 27, 2009. There are two ways to participate in the conference call-via conference call or webcast. Domestic callers may dial in at 1-877-941-4774. International callers may dial in at 1-480-629-9760. Request to be connected to the Sbarro, Inc. Year End Fiscal 2009 Earnings Conference Call, confirmation number 4275185. Callers should dial in five to ten minutes before the scheduled start time. You may also access the conference call via webcast by visiting Sbarro Inc.’s website (http://www.sbarro.com), selecting Investors, and going to Investor Presentations.

An archived copy of the call will be available for a week to replay beginning at 2:00 PM (EDT) on April 15, 2010. Domestic callers may dial 1-800-406-7325 and International callers may dial 1-303-590-3030. The replay PIN number is 4275185. An archived copy of the call will also be available by accessing Sbarro, Inc.’s homepage.

About the Company

Based in Melville, New York, we are the world’s leading Italian quick service restaurant concept and the largest shopping mall-focused restaurant concept in the world. We have 1,056 restaurants in 41 countries. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts. Additional information is available at http://www.sbarro.com.

The restaurant industry as a whole supports a provision in the federal health care reform bill requiring restaurants with more than 20 locations to post calorie counts on menus. But locally-owned Davanni’s is against the change, saying it doesn’t treat restaurants equally and it will come at a steep price.

Ken Schelper, vice president of Davanni’s, which has 21 pizza chains in Minnesota, called the menu changes “an administrative nightmare.”

Schelper has a background in nutrition and believes the requirement doesn’t treat all restaurants equally and focuses too much on calories, since there are both healthy and empty calories.

“I don’t think it’s a very smart idea,” Schelper said. “We get requests from our customers and very few of them regard calories. Most of them have to do with ingredients, allergies and food sensitivities.

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If you want to know how far your customers will go to show their love for their favorite pizza, ask the staff of Pizza House, www.pizzahouse.com, located in Ann Arbor and East Lansing, Michigan.

Several months ago Pizza House started asking patrons to take a picture of the restaurant’s pizza delivery box at one of their favorite or far away locations. Since then, the Pizza House pizza box has been photographed at various Michigan locations, the White House in Washington, D.C., the Biltmore House in Asheville, North Carolina, and as far as Antarctica.

According to Chris Bortz, Pizza House general manager, each photo has the opportunity to be selected in a monthly drawing for the entrant to win a fifty dollar Pizza House gift card. “The selection is based on a combination of creativity and unusual locations,” said Bortz.

The Pizza House restaurants in Ann Arbor and East Lansing are located adjacent to their respective and rival Michigan universities.

“We attract customers from very diverse and well traveled backgrounds, so ‘Where’s Boxy?’ is a great opportunity for us to keep in touch with our fans,” added Bortz.

To enter the “Where’s Boxy?” contest and upload a photo, simply visit the Pizza House Web site at www.pizzahouse.com. Pizza House is open daily from 10:30 a.m. to 4 a.m. for dining in and delivery.

About Pizza House

Established in 1986, Pizza House is a family-owned business with restaurants in Ann Arbor and East Lansing, Michigan. Known for serving famous Chicago and Sicilian deep dish and traditional pizzas, pasta and everything in between, Pizza House was voted “best pizza, best chipati?, best salads, best restaurant” by The Daily Readership Poll. Both restaurants provide full-service casual sophisticated dining with private dining rooms available and deliveries for individuals and catered events.

Is it the newest tool to fight obesity, or just another way to tax cash strapped consumers?

In a move similar to the cigarette tax, researchers are now pushing to tack on a tax to some of the food items they consider unhealthy, like pizza and soda.

One local pizza shop owner says the tax would come at a time he’s already paying extra to offer fresh and healthy menu items.

“Every night we prepare the dough for the next day,” Mr. G’s Pizzeria Owner Giovanni Cherone said.

For the past 15 years Mr. G has been cooking up what he considers to be some of the healthiest pizza in the Brazos Valley. He even advertises it on the front door.

“You can touch my dough and see it’s fresh,” Cherone said.

But now in an effort to curb obesity and all associated health care costs, a group of researchers want to add an 18 percent tax onto pizza and soda.

The thought behind it is if you tax it, the less they will come and the healthier they will be.

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Papa John’s International (NASDAQ: PZZA) today announced its 2009 Franchise Operators of the Year:

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  • Milan Enterprises, LTD (E. Brunswick, N.J.), National Small Group Franchisee of the Year (1-3 restaurants) – Rana Ali and Syed Shah
  • ATM Pizza, Inc. (New York, N.Y.), National Medium Group Franchisee of the Year (4-10 restaurants) – Ajay Choudhary
  • Pizza Ventures of San Antonio, LLC (San Antonio, Texas), Large Group Franchisee of the Year (11 or more restaurants) – Clark Mandigo
  • Inversiones Blumaro, S.A. (Dominican Republic), International Franchisee of the Year – Isabel Turrull

Recognized before their peers at the company’s Annual Operator’s Conference, the winners were selected primarily for demonstrating Papa John’s commitment to serving a superior-quality pizza, world-class customer service and outstanding community involvement. All four winning franchisees also were recognized for adhering to Papa John’s high standards, and running successful restaurant operations.

“Our winners do an excellent job delivering on our ‘Better Ingredients, Better Pizza’ brand promise,” said Jude Thompson, Papa John’s President and Chief Operating Officer. “These franchisees are excellent role models for the entire Papa John’s system and it is an honor to recognize their efforts.”

Headquartered in Louisville, Kentucky, Papa John’s International, Inc. (NASDAQ: PZZA) is the world’s third largest pizza company. For nine of the last 10 years, consumers have rated Papa John’s No. 1 in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Papa John’s also was honored by Restaurants & Institutions Magazine (R&I) with the 2009 Gold Award for Consumers’ Choice in Chains in the pizza segment. For more information about the company or to order pizza online, visit Papa John’s at www.papajohns.com.

California Pizza Kitchen, Inc. (CPK) (Nasdaq:CPKI), home of the Original BBQ Chicken Pizza and other innovative hearth-baked pizzas, made-to-order pastas, creative salads, appetizers, soups, sandwiches and desserts, opened its second location in the Middle East today. The new restaurant, opened by CPK franchise partner Gourmet Gulf Company, is located in Dubai at the new Mirdif City Centre.

The 5,000 square-foot CPK restaurant seats approximately 185 people and is located near the first floor main entrance of the 2.1 million square-foot Mirdif City Centre. Home to more than 450 world class stores, the super regional shopping center will include a mix of fashion, home, electronics and entertainment retailers with over 75 restaurants and cafes. The Centre’s entertainment options include several new concepts such as a special children’s “Edutainment Centre,” an “iFly” sky diving experience and a twelve-lane bowling alley.

Tastefully decorated with warm colors and rich textures, the restaurant will open Monday through Friday from 12:00 p.m. to 10:00 p.m., Saturday and Sunday from 12:00 p.m. to 12:00 a.m.

The open-exhibition kitchen takes center stage where guests can watch as all of California Pizza Kitchen’s innovative dishes are prepared. The menu features all of the CPK favorites including everything from the Works Pizza and the popular Spinach Artichoke Dip to Kung Pao Spaghetti and the award-winning Thai Crunch Salad.

California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, appetizers, soups, sandwiches and desserts. Of the chain’s 253 restaurants, 205 are company-owned and 48 operate under franchise or license agreements. There are currently 28 restaurants located internationally in China, Japan, Philippines, Malaysia, Singapore, Mexico, South Korea, Guam, Indonesia and United Arab Emirates. There are 7 company-owned CPK ASAP locations and 16 airport locations franchised by HMSHost Corporation. CPK premium pizzas are also available to sports and entertainment fans at three Southern California venues including Dodgers Stadium, Angel Stadium of Anaheim and STAPLES Center. Also included in the company’s portfolio of concepts is LA Food Show Grill & Bar, which has locations in Manhattan Beach and Beverly Hills, California. The company also has a licensing arrangement with Kraft Pizza Company, which manufactures and distributes a line of California Pizza Kitchen premium frozen pizzas. For more details, visit www.cpk.com.

It’s somehow fitting that J. Patrick Doyle, president and new CEO of Ann Arbor based Domino’s Pizza, spent his first days on the job last week in India and Saudi Arabia.

On Thursday, he opened Domino’s 300th outlet in India and its 65th new location there this year, making India the pizza-delivery chain’s fastest-growing market.

“In the next three to five years, our sales outside the U.S. will surpass our sales here,” Doyle, 46, said Thursday in his first extensive interview since taking the reins from David Brandon.

About 55% of Domino’s $5.6 billion in sales last year were in the U.S.

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CiCi’s Pizza is extending the 25th Anniversary 3.99 buffet pricing from March 17 – 28, 2010.  This limited time 25th Anniversary price proved to be a very successful way to thank CiCi’s loyal guests while providing an unbeatable deal for those unfamiliar to the hot and fresh endless buffet.

“We are more than pleased that our guests were ‘WOW’ed by this endless value offer,” said Michael Shumsky, CEO of CiCi’s Pizza. “Our reputation is built on our endless flavor, endless variety and endless value and we look forward to continuing to celebrate our 25th Anniversary with our guests and providing them with a terrific CiCi’s experience.”

“What I like most about CiCi’s is that it’s cost efficient for a family of four,” said a mother of two who lives in Frisco, Texas. “It’s fun and everyone gets what they want.”

CiCi’s Pizza first opened as an independent restaurant in 1985 in Plano, Texas. From the very first location to their now 650 restaurants in 33 states, CiCi’s has built a reputation for offering guests a value-driven price point for the 24-footlong endless buffet of salad, pasta, pizza and desserts.

CiCi’s Pizza features 18 different kinds of pizza on the buffet including signature pies such as the Macaroni and Cheese, Thin Crust Italiano and the Mexican Ole. Men’s Health “Eat this, Not That” recently gave CiCi’s top marks for their salad bar and healthier pies, including the Zesty Vegetable, Alfredo and the Mexican-inspired Ole.

“We’re so proud of how our system was able to deliver on the CiCi’s experience,” said Kyle Smith, Vice President of Brand Excellence, CiCi’s Pizza. “Everyone on our team, at every level, really worked hard to provide a hot, fresh buffet and excellent level of guest service. And they are looking forward to introducing additional guests to the brand during our anniversary celebration extension!”

About CiCi’s Pizza

Celebrating our 25th Anniversary in 2010, CiCi’s Pizza is a family-oriented restaurant that consistently delivers endless flavor, endless variety and endless value with their hot and fresh buffet of pizza, pasta, salad and dessert. The CiCi’s team prides itself with doing whatever it takes to exceed expectations for food quality, great service, and a terrific family experience – all at a very affordable price. Our sauce made from vine-ripened tomatoes and our hand-stretched dough are both made daily at every CiCi’s restaurant using the freshest ingredients. Since opening its first restaurant in Plano, Texas, in 1985, CiCi’s has grown to 650 restaurants in 33 states and offers over 18 varieties of pizza.

Industry professionals have taken notice of CiCi’s Pizza’s continuous growth and success. USA Today featured CiCi’s Pizza in the “Money” section, positioning the brand as the value leader within the restaurant industry. In 2009, Restaurants & Institutions “Consumers’ Choice in Chains” recognized CiCi’s Pizza as a top pizza chain in America, as well as an honor in “Best in Value.” Nation’s Restaurant News has ranked CiCi’s number one for sales and unit growth in the pizza chain category for the past three years. In its recent 2009 ranking, Entrepreneur magazine’s Annual Franchise Top 500 issue, ranked CiCi’s Pizza as number one in the Italian restaurant industry category, an honor the company also received in 2007. Men’s Health recently included CiCi’s Pizza in its list of America’s Healthiest Restaurants. StartupJournal.com, The Wall Street Journal’s guide for entrepreneurs, ranked CiCi’s as one of the top 25 highest-performing brands in the nation and Franchise Today placed the company in the top 200 of all franchise concepts. For more information visit www.cicispizza.com.

Uno Restaurant Holdings Corp., the operator and franchisor of 170 pizzerias, filed a Chapter 11 reorganization plan that calls for a $27 million offering of notes and projects lower sales and earnings this year.

Uno Restaurant’s rights offering of second-lien notes would enable it to repay an outstanding loan and exit Chapter 11, the Boston-based company said in court papers filed yesterday in U.S. Bankruptcy Court in Manhattan.

The restaurant chain, which made its name selling deep-dish Chicago-style pizza, filed for court protection in January, citing increased costs and lower consumer spending. Secured debtholders Twin Haven Capital Partners LLC and Coliseum Capital Management LLC have agreed to backstop the notes offering, which means they would purchase any notes not acquired by other investors.

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The signs at the corner of Ninth Avenue and West 41st Street have an unbelievable, you-gotta-be-kidding quality, like free beer or affordable housing — 99¢ Fresh Pizza. Like many things in New York City, they are also too good to be true. They are off by a penny, as one slice actually costs one dollar.

Seven days a week, 24 hours a day, New Yorkers stand at the outdoor counter of 99¢ Fresh Pizza and pay as much for a plain slice as they did for a subway fare in 1986. At $1.50, the fee to use the sidewalk A.T.M. nearby is more expensive.

This being a city with a 10.4 percent unemployment rate in January, this being a recession, there is no such thing as change that is spare. Customers, taking the signs at their word, have been known to ask for a penny back after paying with a dollar bill.

“I give them penny,” explained Mohammad Hossain, a manager at the pizza shop.

No pennies change hands one block down Ninth Avenue, at West 40th Street, where the competition posted signs of their own: “Pizza, $1.00 per slice, tax included.” Postal workers, teenagers and businessmen step into the 24-hour 2 Bros. Pizza, $5 bills in hand. Allegiances have formed. Trash has been talked. A cabdriver said he preferred 99¢ Fresh over 2 Bros., because it was easier to find street parking outside 99¢ Fresh. A patron of 2 Bros. prefers their sauce over the sauce up the block.

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Noble Roman’s, Inc. (OTC Bulletin Board: NROM), the Indianapolis based franchisor of Noble Roman’s Pizza and Tuscano’s Italian Style Subs, today announced results for the year 2009.  Net income was $1.7 million, or $.09 per share basic and $.08 per share diluted, on weighted average number of common shares outstanding of 19.4 million and diluted weighted average shares of 20.0 million for the year ended December 31, 2009.  This compares to a net income from continuing operations for the year ended December 31, 2008 of $1.4 million, or $.07 per share basic and diluted from weighted average number of shares outstanding of 19.2 million and diluted weighted average number of shares of 20.1 million.  Says Noble Roman’s President, Scott Mobley, “Fortunately, we took decisive action throughout the second half of 2008 to significantly reduce overhead, target resilient growth opportunities and create new revenue sources.  Capitalizing on this effort throughout 2009 lead to bettering our 2008 results despite the extremely challenging environment for franchising and the foodservice industry.”

For comparative purposes, the income numbers above used net income from continuing operations for 2008.  After a charge for loss on discontinued operations in 2008, the company reported a net loss of $2.5 million for the year ended December 31, 2008, or a loss of $.13 per share basic and a loss of $.12 per share diluted, on weighted average number of common shares outstanding of 19.2 million and diluted weighted average shares of 20.1 million.  There was no loss on discontinued operations in 2009.  

Royalty and fee income, less initial franchise fees, area development fees and equipment commissions, was approximately $6.7 million in both 2008 and 2009, though total revenue decreased from $9.0 million in 2008 to $7.5 million in 2009. Royalties and fees decreased from approximately $7.6 million in 2008 to approximately $6.9 million in 2009. The decrease in royalties and fees was primarily a result of selling fewer franchises, earning less equipment commissions and selling fewer area development agreements, all of which were impacted by the recent recession and crisis in the financial markets.

The company has recently developed a take-n-bake version of its pizza as an addition to its menu offerings.  The take-n-bake pizza is designed as an add-on component for new and existing convenience store franchisees, and as a stand-alone offering for grocery store chains.  Since adding this component in late 2009, the company has signed agreements for 87 grocery store locations to operate the take-n-bake pizza program.  Grocery store chains that have signed agreements for certain of their grocery store locations to operate the take-n-bake pizza program will total 255 if multi-unit chains enter into agreements for the remainder of their grocery stores, as they have indicated they will do.  However, there can be no assurance that they will add those additional agreements.  The company is also in discussions with several additional grocery store chains regarding adding the take-n-bake program to their stores.  The company expects the number of grocery store locations for take-n-take to increase significantly over the next several months.  The take-n-bake program has also been integrated into the operations of 29 existing convenience stores, generating significant add-on sales, and is now being offered to all convenience store franchisees.  

The company has recently developed a grab-n-go service system for a limited portion of the Tuscano’s menu.  The grab-n-go system is designed to add sales opportunities at existing non-traditional Noble Roman’s Pizza and/or Tuscano’s Subs locations.  The grab-n-go system has already been integrated into the operations of several existing locations, generating significant add-on sales.  The system is now being made available to other existing franchisees.  

The company is now offering new, non-traditional franchisees the opportunity to open with both take-n-bake pizza and grab-n-go subs when they acquire a dual-branded franchise.  Additionally, through changes in the menu, operating systems and equipment structure, the company is now able to offer dual Noble Roman’s Pizza and Tuscano’s Subs franchises at a significantly reduced investment cost.  The company is now promoting these enhancements for non-traditional locations and has been demonstrating the dual-brand at a variety of trade shows in recent months.

The company’s strategy is to grow its business by focusing its efforts on franchising new non-traditional locations and by licensing additional locations to sell its take-n-bake pizza.  The company increased its focus on selling additional franchises for non-traditional locations by creating the Noble Roman’s Bistro service system to help broaden the appeal to additional types of locations and operations and by developing a take-n-bake pizza and grab-n-go subs as additional menu offerings to accelerate non-traditional unit growth.  In addition, the company, in late 2008, discontinued operating any restaurants except for the two locations the company operates for testing and demonstration purposes.  This change allowed the company to reduce operating expenses and overhead and, at the same time, established a platform for what the company anticipates will be significant growth in the future.  

The company continues to vigorously defend itself in the lawsuit styled Kari Heyser, et al, vs. Noble Roman’s, Inc., et al.  The Plaintiffs are former franchisees of the company’s traditional location venue.  In addition to the company, the Defendants include certain of the company’s officers.  Lenders to certain of the Plaintiffs were also named as Defendants, but the court dismissed the claims against them.  Defendants filed the First Request for Production of Documents in February 2009 and certain Plaintiffs produced some documents requested by the company.  However, certain of the Plaintiffs produced no documents and the company filed a Motion to Compel the production against the Plaintiffs. The Judge entered a Stipulated Order on the Motion to Compel stating that all Plaintiffs in this litigation were ordered to, without objection or evasion, file written responses and produce all documents and things that are responsive to the company’s Request.  The company believes that the written responses submitted do not comply with the Order and many of the Plaintiffs have not submitted any documents and most of the others have not fully complied.  

The company filed a Counter-Claim for Damages against all of the Plaintiffs and moved to obtain Preliminary and Permanent Injunctions against a majority of the Plaintiffs to remedy the Plaintiffs’ continuing breaches of the applicable franchise agreements.  The company’s Motion for Preliminary Injunction was granted in October 2008.  The company has asserted that none of the preliminarily enjoined Plaintiffs fully complied with the court’s Order and that several of them only minimally complied.  Accordingly, the company filed a Motion to Require Full Compliance and To Show Cause why they should not be held in contempt and for attorney’s fees as sanctions.  

The company filed a Motion to Revoke the Temporary Admission Pro Hac Vice of David M. Duree, Plaintiffs’ former counsel, for filing fraudulent affidavits with the court.  The court granted this motion in March 2009 and also struck the fraudulent affidavits. New counsel for Plaintiffs entered his appearance in the case on behalf of the Plaintiffs in May 2009.  

The company also filed a Motion for Partial Summary Judgment as to several claims in the Complaint, which the Judge granted on September 22, 2009. On October 8, 2009 Plaintiffs filed a Motion to Correct Error, Reconsider And Vacate Order; Request For Clarification; Alternatively, Motion For Certification Of Appeal Of Interlocutory Order And For Stay Of Proceeding Pending Appeal.  On January 12, 2010, the court denied Plaintiffs’ Motion and in the same Order the court denied Plaintiffs’ Motion for Certification of Appeal of Interlocutory Order and for Stay of Proceedings Pending Appeal.  Further, the court denied Plaintiffs’ request to amend their Complaint.  On February 11, 2010, counsel for the Plaintiffs filed a Notice of Appeal with the Indiana Court of Appeals.  Defendants’ Counsel is preparing a motion to dismiss the appeal based on lack of jurisdiction.  

To date, 11 of the 14 Plaintiff groups have been deposed.  Plaintiffs’ counsel withdrew representation of Plaintiffs Morris and Soltero, leaving one Plaintiff group to be deposed.  

Certain Defendants were scheduled for depositions by Plaintiffs’ counsel during the week of November 9, 2009, however, Plaintiffs’ counsel canceled those depositions.  Defendants had been rescheduled for depositions during the week of March 15, 2010, however, on March 12, 2010 Plaintiffs’ counsel again canceled those depositions.

Defendants have filed Motions for Summary Judgment as to some of the Plaintiffs as a result of their testimony at depositions and are in the process of preparing motions for Summary Judgment against all of the other Plaintiffs whose depositions have been taken.  In the Judge’s Order of February 2, 2010, the Judge set a deadline of April 30, 2010 for filing of all remaining Motions for Summary Judgment, a deadline of June 4, 2010 for Plaintiffs’ Response to the Motions and a deadline of June 18, 2010 for Defendants’ Reply to Responses.  

Although there can be no assurance regarding the outcome of litigation, the company believes that it has strong and meritorious legal and factual defenses to these claims and viable counter claims against the Plaintiffs and will vigorously defend its interests in this case.

The brackets are set and NCAA® March Madness® has begun. But the coaches who have advanced to the tournament aren’t just fighting for a championship title — they’re fighting against cancer in the Papa John’s Coaches Code Challenge to raise money for The V Foundation for Cancer Research and the Kay Yow/WBCA Cancer Fund.

Beginning today, in partnership with the National Association of Basketball Coaches (NABC) and the Women’s Basketball Coaches Association (WBCA), college basketball fans who enter their favorite coach’s unique promo code while ordering online at www.papajohns.com will automatically designate $1 of their Papa John’s order to The V Foundation for Cancer Research and the Kay Yow/WBCA Cancer Fund in partnership with the NABC and WBCA. The special offer includes an XL two-topping pizza for $12, with $1 from each order going to fight cancer.

A complete list of unique promo codes, alphabetical by school for both the men’s and women’s NCAA basketball teams, is included below. The general format of the promo code is the coach’s last name, but coaches with duplicate last names will incorporate their first initial in the code. For those fans who don’t have a team in the tournament but still want to contribute, they are invited to use the generic promo code BEATCANCER.

“March Madness is undoubtedly the most exciting part of the season, and NABC coaches are eager to harness the excitement and power of their respective fan bases to raise money for The V Foundation for Cancer Research,” said Jim Haney, executive director of the NABC. Echoing those sentiments, Beth Bass, chief executive officer of the WBCA, said “While it’s every man or woman for themselves on the basketball court, the fight against cancer is a cause everyone can rally behind all year long.”

Throughout the Tournament, coaches and college athletic departments will be reminding fans of the challenge and their respective promo codes – all in a race to raise money and earn bragging rights as the school that best supports its basketball program’s fight against cancer.

Papa John’s, the Official Pizza of the NCAA®, will keep a running score of the donations received on Papa John’s Facebook page at www.facebook.com/papajohns and will distribute regular updates on the standings and total money raised.

“Everyone’s an NCAA® basketball fan this time of year and Papa John’s is extremely proud to help the NABC and WBCA turn that passion toward a great cause,” said Andrew Varga, chief marketing officer for Papa John’s. “No matter how your team fares on the court, you can play an active role in helping your school win in the fight against cancer.”

The challenge ends at midnight ET on April 6. The total donations received as part of the Coaches Code Challenge will be divided evenly between the two charities. March is one of the busiest months for Papa John’s. The company expects to sell 10 million pizzas in just the first two weeks of the NCAA® tournament, with sales ramping up as lower-seeded teams advance.

About Papa John’s

Headquartered in Louisville, Kentucky, Papa John’s International, Inc. (NASDAQ: PZZA) is the world’s third largest pizza company. For nine of the last 10 years, consumers have rated Papa John’s No. 1 in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Papa John’s also was honored by Restaurants & Institutions Magazine (R&I) with the 2009 Gold Award for Consumers’ Choice in Chains in the pizza segment and was named 2007 Pizza Today Chain of the Year. For more information about the company or to order pizza online, visit Papa John’s at www.papajohns.com.

About The V Foundation for Cancer Research

The V Foundation for Cancer Research was founded in 1993 by ESPN and the late Jim Valvano, legendary North Carolina State basketball coach and ESPN commentator. Since 1993, The Foundation has raised more than $90 million to fund cancer research grants nationwide. It awards 100 percent of all direct cash donations and net proceeds of events directly to cancer research and related programs. The Foundation, which has received seven consecutive top 4-star ratings from Charity Navigator, awards grants through a competitive awards process strictly supervised by a Scientific Advisory Board. For more information on The V Foundation or to make a donation, please visit www.jimmyv.org.

About the Kay Yow/WBCA Cancer Fund

The Kay Yow/WBCA Cancer Fund® is a 501 c(3) charitable organization committed to being a part of finding an answer in the fight against women’s cancers through raising money for scientific research, assisting the underserved and unifying people for a common cause. Donations can be made at www.JimmyV.org or by calling 1-800-4JimmyV. All donations are tax deductible. For more information, visit www.wbca.org/kayyowwbcacancerfund.asp.

About the National Association of Basketball Coaches (NABC)

Located in Kansas City, Missouri, the NABC was founded in 1927 by Forrest “Phog” Allen, the legendary basketball coach at the University of Kansas. Allen, a student of James Naismith, the inventor of basketball, organized coaches into this collective group to serve as Guardians of the Game. The NABC currently claims nearly 5,000 members consisting primarily of university and college men’s basketball coaches. All members of the NABC are expected to uphold the core values of being a Guardian of the Game by bringing attention to the positive aspects of the sport of basketball and the role coaches play in the academic and athletic lives of today’s student-athletes. The four core values of being a Guardian of the Game are advocacy, leadership, service and education. Additional information about the NABC, its programs and membership, can be found at www.nabc.com.

About the Women’s Basketball Coaches Association (WBCA)

Founded in 1981, the WBCA promotes women’s basketball by unifying coaches at all levels to develop a reputable identity for the sport and to foster and promote the development of the game as a sport for women and girls. For additional information about the WBCA, please visit wbca.org.

Ashley Rathgeber has a message for national restaurant chains trying to source food locally: “It does get easier.”

Rathgeber, manager of procurement, research and development for Fort Lauderdale, Fla.-based restaurant chain Pizza Fusion, knows. She’s spent the last three years honing a process that doesn’t follow the typical sourcing rulebook but gets local goods into the full-service chain’s 20 units year-round. “We’re about nationalizing local and localizing national,” Rathgeber says. “We try to locally source things that are available nationally but can be bought closer to home, and at the same time, we try to help small, local vendors grow to be able to supply on a national level.”

The result: At any given time, up to 25 percent of Pizza Fusion’s inventory is locally sourced. Rathgeber estimates produce supplies for East Coast restaurants are “fairly local” for six months of the year, and Western and Southern stores’ produce supplies are “mostly local” for eight months. And in Central region units, supply is “mostly local” for four months. On a national basis throughout the year, that means much of the arugula, basil, tomatoes, red onions, garlic, bell peppers, zucchini, eggplant, spinach and specialty cheese that go into making the chain’s core menu of two appetizers, five salads, four sandwiches, 14 pizzas and two desserts is locally sourced.

Soon that will list will include ingredients for Pizza Fusion’s first-ever limited-time offers, which will be developed to feature regional and seasonal items. First up will be a summer salad with some combination of dried fruit (raisins, dates or cranberries) and grapes.

Continue reading . . .

Debbie Hutchens isn’t afraid of hard work. Yet when she nervously walked into the First Street Pizza Hut that warm August morning for her first day on the job, she wasn’t sure if she had what it took to be a good waitress.

Twenty-six years later, you could say it worked out.

In an industry notorious for its high turnover rate, waitress Hutchens stands out. From deep-dish to desserts, sodas to salad plates, Hutchens faithfully has served hungry dining patrons in the Grand Valley for 2 1/2 decades. Born and raised in Craig, Hutchens moved to Grand Junction in 1983.

Twenty-three years old and just off a divorce, she was looking for a fresh start when her mom suggested she move in with her brother while she got back on her feet. With the Exxon oil shale bust beginning to take its toll on the local economy, jobs were scarce.

So when a friend of a friend told her about a waitress opening at Pizza Hut, she jumped at the chance. She recalled thinking at the time: “I’m not sure if I’ll be any good at it, but I need a job. And I love pizza. I’ll try it.”

Continue reading . . .