Chain Operating Report for October 24, 2012

Among the chains making news this week are Dunkin' Donuts, Elevation Burger, Popeyes, ShopHouse and Togo's.

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AFC Enterprises, Inc., the franchisor and operator of Popeyes Louisiana Kitchen restaurants, agreed to acquire 28 restaurants in Minnesota and Northern California at a price of $13.8 Million. The restaurants are in the trade image of another quick service restaurant concept but AFC intends to convert the Popeyes Louisiana Kitchen units at a cost of approximately $11.5 Million. Following the conversion, the restaurants will be leased to Popeyes franchisees to operate. The purchase agreement is subject to bankruptcy court approval and the acquisition is expected to close in November.

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Dunkin' Donuts signed a multi-unit store development agreement for 16 new restaurants in the Salt Lake City market with existing franchisee Sizzling Donuts, LLC. The first restaurant is planned to open in 2013 and the remainder by 2018

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Elevation Burger, a chain restaurant in the fast-casual/better-burger segment opened a location in Naples, Fla., its 30th unit system wide.

FREEBIRDS World Burrito opened a location in Kansas City, Mo., its second restaurant in the Midwest.

The Habit Burger Grill opened a location in Rancho Cordova, Calif., its eighth restaurant in the Sacramento area. The Irvine-based concept has more than 60 locations in California and Arizona.

Johnny Rockets signed a development agreement for eight restaurants in Honduras, Costa Rica, Nicaragua, El Salvador and Guatemala over the next five years.

Saladworks opened a location in Stroudsburg, Pa., its first restaurant in the Pocono Mountains.

ShopHouse Southeast Asian Kitchen, a fast-casual concept created by Chipotle Mexican Grill, plans to open its first Los Angeles location in early 2013. This will be the third ShopHouse location, with the first two restaurants in Washington, D.C.

Fast-casual sandwich chain Togo's has targeted Oregon as a major point of emphasis for its expansion plans. Togo's has franchise development agreements in place that calls for the opening of three restaurants in Oregon before the end of the year, including a second location in Bend and a pair in Eugene. For 2013, Togo's has plans to open five restaurants in Oregon, at this point. The chain hopes to open 25-30 restaurants throughout Oregon in cities such as Portland, Eugene, Hillsboro, Bend, Medford, Salem, Klamath Falls, as well as Vancouver, Wash., over the next several years, according to a company release.

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