Lenny's Subs plan 80 store expansion in Texas

Chicago, IL 6-26-2005- The sub market is heating up in the southwest much like what the burrito business has been doing over the past five years. Fast casual operations have realized the availability of new real estate in the suburban sprawl and fast growing cities of the Southwest."Everyone is on equal footing for expansion now since most chains are fighting for the same spot". Stated Bill Truit longtime real estate pro in Texas. "The kings of fast food no longer have the best locations, and the idea of new fast casual concepts intrigue many developers in the real estate business. The draw- power of these new upstart brands blend well with the community development plans in many cases." Truit added.               Len Moore, who founded Lenny's Sub Shops in Memphis in 1998, is launching a new initiative to open 80 restaurants in three Texas counties. It's part of an agreement between Moore of Memphis-based Lenny's Franchisor LLC and his long-time friend Tom Clatterbuck of Houston-based Restaurant Consultants expected to generate $600 million for the Lenny's Sub Shops system. It also will mark a significant expansion for Lenny's Sub Shops in the Southwest. The chain's stores are currently concentrated in the Southeast, and include locations in Tennessee, Alabama, Florida, North Carolina, Arkansas, Mississippi, Oklahoma, Texas and Georgia. The 80 new stores will be developed in Texas' Fort Bend, Harris and Montgomery counties.

Moore and his wife Sheila opened the first Lenny's Sub Shop in Bartlett, TN in 1998. Since then the company has spread like wildfire, making the move to franchising in 2001. The company currently has 63 franchise restaurants, with more than 300 franchises in nine states on the way. Moore now lives in the Houston area, has ownership of restaurants in several states and recently opened a Lenny's Sub Shop in Woodlands, Texas. During his long career in the restaurant industry, he held management positions with a number of companies including Chick-Fil-A, TGI Friday's, Olive Garden and Ruby Tuesday's. Clatterbuck, who operates Lenny's Sub Shops in Nashville and near Huntsville, Alabama, is relocating to Houston to take part in the aggressive expansion there. He has more than 30 years of experience in the food service industry, including management positions at TGI Friday's, Applebee's, Chick-Fil-A and Wendy's. Lenny's Franchisor is on track to open between 400 and 500 restaurants by 2008. Today's announcement is the second major agreement in the last month. Lenny's Franchisor announced an agreement with Dynamic Growth Partners of Boca Raton, Florida to develop 125 restaurants in Florida.