Round Table Pizza Announces Debut in Oklahoma and Arkansas
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Insights
The expansion of FAT Brands through the development deal with AF Ventures LLC is a strategic move to penetrate new geographic markets. By introducing Round Table Pizza to Oklahoma and Arkansas, FAT Brands is leveraging the concept of market saturation in regions that may have lower competition for premium pizza offerings. This kind of expansion is significant in the restaurant industry, as it often leads to increased market share and brand recognition.
From an economic standpoint, the incremental revenue from these 16 new franchised locations could contribute positively to FAT Brands' top-line growth. However, the actual impact on the company's financials will depend on the speed of rollout, initial capital expenditures and the market's reception of the brand. The franchising model minimizes risk and capital investment for FAT Brands, which is advantageous for maintaining a healthy balance sheet.
It is also worth considering the multiplier effect in the local economies of Oklahoma and Arkansas, as new job opportunities and associated economic activities could stimulate regional growth. This expansion illustrates the potential for a well-executed growth strategy to create value for both the company and the communities it enters.
The announcement of the development deal by FAT Brands may have a positive effect on investor sentiment, as it reflects the company's growth ambitions and its ability to forge new partnerships. For current and potential investors, the key points of interest would be the projected increase in revenue streams and the potential for long-term profitability from these new locations.
Investors should monitor the execution of the development plan, as delays or cost overruns could impact expected returns. Additionally, the franchising fees and ongoing royalties from these new locations could provide a steady cash flow, enhancing the company's financial stability. It is crucial to analyze the deal's terms and the track record of AF Ventures LLC to assess the likelihood of successful implementation.
Moreover, the diversification of FAT Brands' portfolio into new states could mitigate risks associated with regional economic downturns. The long-term success of this expansion will depend on factors such as brand adaptation to local tastes, marketing effectiveness and the competitive landscape in Oklahoma and Arkansas.
The franchising approach taken by FAT Brands for the expansion of Round Table Pizza is a common and effective strategy in the restaurant industry for achieving growth without incurring the full cost and risk of opening company-owned outlets. Franchising allows for leveraging local entrepreneurs' knowledge and capital, which can be a critical factor in successfully adapting to new markets.
For franchisees, such as AF Ventures LLC, the deal represents an opportunity to partner with an established brand and benefit from its business model, training and support systems. However, it is essential for franchisees to conduct thorough market research and have a solid understanding of the local consumer behavior to ensure the brand's value proposition resonates with the target audience.
Franchisors must maintain rigorous standards to ensure brand consistency, which is a cornerstone of customer loyalty and repeat business. The success of FAT Brands' expansion will heavily rely on the quality of franchisee selection, the support infrastructure in place and the ability of each franchised restaurant to maintain the brand's reputation for quality.
Latest Development Deal Brings 16 Restaurants to Two New States
LOS ANGELES, Jan. 08, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., parent company of Round Table Pizza and 17 other restaurant concepts, announces a new development deal set to bring the iconic California-based pizza chain to Oklahoma and Arkansas. The new deal will bring a total of 10 Round Table Pizza franchised restaurants to Oklahoma and an additional six franchised locations to Arkansas over the next six years.
“The future is promising for Round Table Pizza as we continue to see the brand grow with new development commitments in existing markets and new markets such as Oklahoma and Arkansas,” said Taylor Wiederhorn, Chief Development Officer of FAT Brands. “We look forward to working with our franchisee AF Ventures LLC in their development of the Round Table Pizza brand throughout Oklahoma and Arkansas and can’t wait to begin serving customers Round Table Pizza in these new states.”
Since its founding in 1959, Round Table Pizza has been recognized as "Pizza Royalty™” for its homemade dough, signature three-cheese blend and gold-standard ingredients topped to the edge. Customers can enjoy the chain’s signature handmade pizzas, salads, baked to perfection Garlic Parmesan Twists, classic and boneless wings and more.
For more information on Round Table Pizza, visit www.roundtablepizza.com.
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About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual, quick-service, casual and polished casual dining restaurant concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
About Round Table Pizza
Inspired by the honor, valor, and revelry of the Knights of the Round Table, Round Table Pizza's® superior pizza and commitment to quality and authenticity have earned the reputation of "Pizza Royalty™" for over 60 years. With more than 410 restaurants across the United States, Round Table celebrates community, family, and making merry. For more information, visit www.roundtablepizza.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the timing and performance of new store openings. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” “plans,” “forecast,” and similar expressions, and reflect our expectations concerning the future. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause our actual results to differ materially from our current expectations and from the forward-looking statements contained in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.
MEDIA CONTACT:
Ali Lloyd, FAT Brands
alloyd@fatbrands.com
435-760-6168
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