MEMPHIS, Tenn., April 28, 2005 (PRIMEZONE) -- Lenny's Sub Shops today announced a franchise agreement with a seasoned group of former Fortune 500 retail executives that will nearly triple the size of the regional restaurant chain and give it a significant footprint in fast-growing Florida.
The agreement between Lenny's Franchisor, LLC of Memphis and Dynamic Growth Partners, Inc. of Boca Raton is expected to result in more than $1 billion in revenues for the Lenny's Sub Shops system.
While the original Lenny's Sub Shop opened in a Memphis suburb in 1998, owners Len and Sheila Moore first started selling delicious subs and Philly Cheesesteaks years before on the Wildwood, New Jersey boardwalk. A genuine Philadelphia-style sub shop with fresh baked bread and the finest quality deli meats and cheeses, Lenny's started franchising in 2001 and has 63 restaurants in nine states from North Carolina to Texas.
"South Florida is ideal for Lenny's," said Jerry Colley, who serves as Chief Executive Officer of Dynamic Growth Partners. "We will begin developing restaurants in Palm Beach, Tampa and Fort Myers and will venture into the remaining markets in 2006."
Under the agreement, Dynamic Growth Partners secured the rights to purchase two existing restaurants and open 123 new ones in 15 Florida counties over the next six years. Those counties include Brevard, Broward, Collier, Hillsborough, Indian River, Lee, Manatee, Martin, Orange, Osceola, Palm Beach, Pinellas, Polk, St. Lucie and Volusia.
Dynamic Growth Partners executives come to the venture after stellar corporate careers. Previously, Colley was president of the $6 billion North American retail stores division of Office Depot and has 34 years in executive positions with Office Depot, AutoZone, Tire Kingdom and Rose Auto Parts. Tru Hall, Chief Marketing Officer, was most recently a regional VP for Office Depot and has 35 years of experience with Office Depot, Toys R Us, Montgomery Ward and Sears. Bill McCawley, Chief Administrative Officer, was formerly store operations VP for AutoZone, the $5.6 billion auto parts retailer and has 30 years with AutoZone, Advance Auto Parts and other firms. Jim Pettit, Chief Operating Officer, was most recently Office Depot's VP for store operations and has 28 years of experience with Office Depot and Cole National.
"Franchising offers us the opportunity to attain an equity position in an established business and continue as entrepreneurs," said Colley. "Lenny's has a tremendous product, a great operating system, an unmatched passion for customer service and a first class management team that is absolutely dedicated to the success of their franchisees. With our team's customer service focus, this was a natural fit for us."
George Alvord, Chief Executive Officer of Lenny's Franchisor, LLC, said the knowledge, experience and track-records of the newest franchisees enhance the whole organization. "We've set some aggressive growth goals for our company," said Alvord, who is pushing for 400-to-500 restaurants by 2008. "With our product, our reasonable startup costs and royalties and protected markets, we are attracting some wonderful partners."
"This agreement is a record for us in terms of size, scope and revenue," said Alvord, who is the retired CEO of Dobbs International Services, a leading airline caterer.
Dynamic Growth Partners decided to focus on Florida because of their market knowledge and opportunities they see associated with the state's business and population growth.
A recent infoUSA survey found six franchise areas, Fort Myers-Cape Coral, Melbourne-Titusville, Daytona Beach, Tampa-St. Petersburg-Clearwater, West Palm Beach-Boca Raton and Fort Lauderdale, among the top 15 fastest growing metro areas in America.
Privately held Lenny's Franchisor, LLC is owned and led by Alvord, Moore and Memphis entrepreneur Al LaRocca and a select group of prominent investors.
For more information about Lenny's Sub Shops, visit www.lennys.com.
Media Kit available at http://66.162.17.146/LennysSubShopsPressKit.pdf
Lenny's Franchisor, LLC Backgrounder Quotes from Chief Executive Officer George Alvord What does the Dynamic Growth Partners, Inc. deal mean to Lenny's Sub Shops? The agreement is significant for many reasons. It is a substantial transaction, for Lenny's and for the Quick Service Restaurant (QSR) industry in terms of the number of restaurants, the geographic area involved and the potential revenue for the Lenny's system. It is a huge deal. And it moves Lenny's a long way toward our goal of 400 to 500 restaurants by 2008. How much is the deal worth? We expect the Lenny's Sub Shop system to see more than $1 billion in sales revenue as a result of this franchise agreement. How long is the deal? The term of the agreement is in excess of 15 years. With their experience and resources, the members of Dynamic Growth Partners, Inc. could have pursued many ventures. Why did they choose Lenny's? We are extremely pleased to have Dynamic Growth Partners join the Lenny's Sub Shops organization. They believe in our outstanding product and our focus in providing "more food, more taste and more personality." The partners all bring with them a passion for customer service. We're thrilled they have partnered with Lenny's. We expect others to follow their example. Who owns Lenny's Franchisor, LLC? In August 2004, former airline catering chief executive George Alvord and Memphis area entrepreneur Al LaRocca led a select investor group which purchased the Lenny's chain from founder Len Moore, who still remains a minority owner. Alvord was previously CEO of Dobbs International Service, a $2 billion airline catering company with 15,000 employees. He has 40 years in executive positions in food service management.
About Lenny's Sub Shops: Len and Shelia Moore founded Lenny's in a Memphis suburb in 1998 with a mission to provide its guests with more food, more taste and more personality. Lenny's offers fresh baked bread and the finest quality deli meats and cheese - sliced fresh to order, along with great tasting Philly Cheesesteaks. While originally planned as a one-store concept, Lenny's started franchising in 2001 and has already granted more than 190 franchise locations. Lenny's Sub Shops are located throughout Alabama, Arkansas, Florida, Georgia, Mississippi, North Carolina, Oklahoma, Tennessee and Texas.
About Dynamic Growth Partners, Inc.: In 2004, four retail executives established Dynamic Growth Partners, Inc. as a retail management consultancy focused on providing retailers with expertise in developing and linking strategy with execution. The four (Jerry Colley, Tru Hall, Bill McCawley, and Jim Pettit) have successful, hands-on experience at creating shareholder value at AutoZone, Office Depot, and Sears Roebuck & Company. With 130 years of success in business development, operations and providing customer service, the DGP partners are committed to providing an outstanding customer experience for each guest at their Lenny's Sub Shops.