News

Mama Fu's launches new prototype, signs 6-store deal

April 26, 2011

Mama Fu’s Asian House is further positioning itself as an industry leader with the launch of a new prototype.

The nationally expanding franchise developed the prototype in an effort to meet the increased system-wide growth of off-premise sales, comprised of take-out, delivery and catering. The prototype shrinks Mama Fu’s footprint from 3,000 to 2,500 square feet, ultimately lowering upfront and ongoing occupancy costs without hampering its ability to build sales across all revenue channels.

“As our company continues to grow and evolve, the more efficient prototype represents a unique opportunity for us to capture expanding segments of our business,” said Randy Murphy, president and CEO of Mama Fu’s. “Over the years, our off-premise revenue has grown to more than 40 percent of system-wide sales, and the new prototype allows us to further enhance our unit level economics.”

Mama Fu’s calculates that the new prototype will reduce start-up costs by $50,000, while reducing ongoing occupancy and utility-related operating expenses by $2,000 per month, on average. Additionally, interior seating has been reduced from an average of 94 to 82 and point-of-sale areas have been redesigned to more easily allow service to both dine-in and off-premise customers.

The company also recently signed a franchise deal withMama’s Alamo LLC for six new restaurants in New Mexico and El Paso, Texas.

San Antonio, Texas-based Mama’s Alamo operates more than 70 franchise locations across seven states. Its portfolio includes Buffalo Wild Wings, Smashburger and Little Caesars. Managing principles Allen Jones and Brian Padilla will develop Mama Fu’s in El Paso, Albuquerque, N.M.; Santa Fe, N.M.; Farmington, N.M.; Rio Rancho, N.M.; and Las Cruces, N.M.

The deal is Mama Fu's fourth since late 2010, bringing the company total to 17 locations. Texas-based Murphy Adams Restaurant Group purchased Mama Fu’s Asian House from Raving Brands in March 2008.