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Mama Fu's rolling out delivery, to-go model

October 22, 2013

Mama Fu's Asian House is rolling out a new prototype that offers only takeout, delivery and catering. Opening the first location in Mama Fu's hometown of Austin, Texas, the new prototype is expected to expand in cities around the country in the coming years, said Randy Murphy, CEO of Mama Fu's Asian House.

"This new smaller model prototype is a natural evolution for the brand," he said. "Not only is it a way to meet consumer demand, but it makes sense in our business model, considering today's real estate challenges of finding larger units in preferred locations. On top of that, nearly 50 percent of our business is already off-premise sales, and that number is growing."

A typical Mama Fu's location is about 3,000 square feet and offers take-out, delivery and catering in addition to the flex-casual restaurant service that seats about 80 guests. The new prototype is roughly 1,500 square feet with 20 to 30 seats and can be scaled to as small as 1,300 square feet. The reduced size not only increases real estate opportunities, but the complexity is also reduced and Mama Fu's can capitalize on improved unit level economics from labor, occupancy and utilities savings, a substantial increase in margin, and capital payback, all while seeing lower start-up costs and a reduced risk, Murphy said.

"Our franchise partners are excited about the new low-investment option with significant ROI," he said, in comparison to revenues in the pizza-wing segment and higher ticket average of Mama Fu's typical off-premise guest. "We have also invested more in operational and consumer focused technology, service, training and packaging to increase the guest's value experience."

With plans to surpass the Asian segment competitors with quality, service, technology and marketing, the new model will also serve as the fresh alternative to pizza and wings currently dominating the segment, Murphy said.

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