crcg news 9/15/98 more aquisitions
Creative Restaurant Concepts Agrees to Purchase3 Crocketts BBQ Restaurants in Oklahoma City Area
OKLAHOMA CITY, Sept. 15 /PRNewswire/ -- Creative Restaurants Concepts, Inc. (OTC Bulletin Board: CRCG) today announced it has signed a binding letter of intent to acquire the three operating Crocketts BBQ restaurants in the Oklahoma City area.
It is the second restaurant chain acquisition for Creative Restaurant Concepts in the past 60 days. In July, the company announced it successfully completed the acquisition of 100 percent of the multi-unit Ground Floor Cafe Corporation through a tender offer.
In announcing the Crocketts acquisition, Joe Johnston, president of CRC, said, "We are excited about this additional expansion. We plan to standardize Crocketts' system of preparing and selling high-quality BBQ products at affordable prices and increase its distribution through a dynamic catering program as well as licensing Crocketts in other markets."
Johnston pointed out the three operating Crocketts restaurants have been successful and have produced acceptable revenues and pre-tax earnings. He added that the three operating Crocketts restaurants generate a combined $1.5 million in annual revenues with approximately 10 percent in pre-tax profits. Last year, Crocketts opened a 10,000-square-foot restaurant in Bricktown. The restaurant closed after six months, and CRC plans to liquidate it. "We plan to cosmetically update the three existing Crocketts restaurants as a first phase of our strategy," said Johnston. "We then will evaluate future expansion."
CRC initially entered into a purchase agreement for the three Ground Floor Cafe units in May, 1998, and Johnston reported the company is "most pleased with the progress of the Ground Floor Cafe units since CRC started operating them under a management agreement signed in November 1997."
He added that sales have increased dramatically in the downtown (Leadership Square) and the Mathis Brothers units. A delivery program is scheduled to begin soon at the downtown unit and Johnston predicted sales for the unit will increase 20 percent as a result.
CRC plans to next add a Ground Floor Cafe unit in Oklahoma City and is currently reviewing prospective locations in Oklahoma City, Edmond and Norman.
Johnston also reported that the CRC's City Bites Sandwich Shop, Wichita, Kan., acquired in December 1997, is recording record monthly sales and profits, and CRC is evaluating expansion possibilities.
Sed Kennedy, former director of operations at Steak and Ale, continues to manage the Ground Floor Cafe restaurants while Johnston will manage the Crocketts BBQ units.
Johnston, former co-founder of Kelly-Johnston Enterprises, which owned and operated 24 Chi-Chi's Mexican Restaurants and eight Joe Kelly's Seafood Restaurants, is spearheading the revitalization of CRC. "It looks like we will now have two viable, tested restaurant concepts to license plus we expect to unveil a completely new casual dining concept for the Oklahoma City area."
This release contains certain forward-looking statements regarding the Company's expected performance in future periods and actual results for such periods may materially differ. Such forward-looking statements involve risks and uncertainties including risks in the overall economy and food services industry, consumer demand, adequate financing and other factors detailed from time to time in the Company's annual and other reports filed with the Securities and Exchange Commission.
SOURCE Creative Restaurant Concepts, Inc.
CO: Creative Restaurant Concepts, Inc.
ST: Oklahoma
IN: RST
SU:
09/15/98 16:05 EDT prnewswire.com
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