In addition to a complete interior design and service model overhaul, Schlotzsky's has boosted sales through a partnership with sister brand Cinnabon.
The co-branding deal, which allows for freshly made Cinnabon Classic Rolls and other treats to be sold on the Schlotzsky's menu, has been rolled out at more than 50 co-branded locations, and at least 50 more are expected to carry the line by the end of 2010. Additionally, every new franchise deal that has been signed in the past six months has been for the combined Schlotzsky's/Cinnabon model, according to the company.
Schlotzsky's brand reinvention, tagged "All ‘Round ‘Lotz Better," has included a new  prototype restaurant featuring vibrant colors, playful slogans, contemporary furniture and artwork.
"The circle theme in our new stores centers around our signature item – our toasted sandwich on a round bun," said Schlotzsky's president Kelly Roddy. "We're still making our sourdough bread fresh daily and dressing our famous round sandwiches with the highest quality ingredients. That's never going to change."
There are eight new prototype models now open and 15 more under construction. The company plans to have 60 of the new restaurants open by the end of the year and all existing restaurants to be reimaged by 2011.
"Many of our longtime franchise owners see their bottom lines improving, and they see great things in Schlotzsky's future," Roddy said. "They are purchasing more locations and increasing their territories now while they see the opportunity is hot."
Ideally, Schlotzsky's plans to have between 600 and 700 locations by 2015, Roddy said.

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