More news from the current OTC:bb stock that is soon
to leave the bb market!
IMO, great company, great opportunity.
<<<
NEWS IS OUT !!!!!
Restaurant Teams International, Inc. Signs Definitive Agreements to Purchase Old San
Francisco Steak House Chain
LONGVIEW, Texas, Oct. 15 /PRNewswire/ -- Restaurant Teams International, Inc.
(OTC Bulletin Board: RTIN - news) announced today that the Company has signed
definitive documents to purchase one hundred percent of the assets and business of 30
year old, privately held, Old San Francisco Steak House. The company, which is
headquartered in San Antonio, Texas, operates four Old San Francisco Steak Houses
in Texas with annual sales of company owned units in excess of $13.2 million. The
company also licenses one unit in Las Vegas, Nevada and will open another licensed
location in Atlanta, Georgia in November of 1998. Old San Francisco has an additional
licensee that is projected to open in Oklahoma City, Oklahoma around mid-1999 under
an agreement that calls for up to 5 units.
The $10-11 million acquisition is subject to approval by the Boards of Directors of
Restaurant Teams International, Inc., and Old San Francisco Steak House, Ltd. and
financing with closing anticipated to occur about November 15, 1998.
In making the announcement, Mr. Leonard, President and Chief Operating Officer of
Restaurant Teams International, Inc., stated, ''Old San Francisco is recognized as a
leader in the steak house segment. We consider Old San Francisco the premier,
mid-priced steak concept in Texas with four units averaging sales in excess of $3.3
million per year versus the segment average of approximately $2.6 million.''
Old San Francisco is positioned in the steak house segment as a mid priced restaurant
serving steaks, seafood, pasta and chicken. In addition, Old San Francisco offers a
boisterous, 1890's Barbary Coast-themed environment with dueling grand pianos and
live entertainment. The ''Girl in the Red Velvet Swing'' boards a bar swing attached to a
30-foot ceiling every 45 minutes, eventually reaching two cowbells attached to the
ceiling and kicking them.
In 1997 & 1998 America's Top Ten Club recognized Old San Francisco as one of the
Ten Best Steak Houses in Texas. The company was also named one of Entrepreneur
Magazine's ''Top 500'' Business Opportunities, making it the only full-service restaurant
to make the list and was nominated for an IFMA ''Silver Plate'' Award in the Best
Independent Category. Old San Francisco's four restaurants are located in Texas, with
one location each in Dallas, Houston, Austin, and San Antonio.
Mr. Leonard further stated, ''We believe the Old San Francisco brand offers an
experience unlike any in the steak house segment with tremendous growth opportunity in
the 90's and beyond. We are pleased that Barry Cohen will remain in his position as
President/CEO of Old San Francisco. His experience and expertise have been
instrumental in the success of the company. We are pleased to have him involved and
look forward to his lending that expertise to our entire company as well. Our plans also
include keeping all current management, hourly, and corporate employees. We expect
to add about 300 jobs in the Old San Francisco division next year. Together, we will
build a great company.''
Barry Cohen, President/CEO of Old San Francisco Steak House commented, ''Old
San Francisco has long been recognized as one of the most successful and unique
concepts in our industry. This opportunity rewards our current shareholders for their
thirty years of support and loyalty while offering our employees new growth over the
next thirty years. I'm looking forward to working with the RTI team and the challenge of
expanding the Old San Francisco brand.''
The addition of the four Old San Francisco restaurants to Restaurant Teams
International's four-unit chain of Street Talk Cafe casual dinner house restaurants
provides the Company greater regional presence, additional expansion opportunity,
diversification, financial strength, and combined annual revenues of company owned
units in excess of $16 million.
After the acquisition, the company expects to end 1998 with a total of five Street Talk
Cafe restaurants, one Fresh'n Lite Cafe & Grill restaurant, four Company owned Old
San Francisco Steak House restaurants, and two licensed Old San Francisco Steak
House restaurants. The combined units (12) represent 300% unit growth in 1998.
Additionally, the combined pro-forma sales from company owned units would result in
over a 433% increase in annual revenue.
Curtis Swanson, Chief Financial Officer of the Company stated, ''The acquisition of Old
San Francisco is based on our continuing strategy of becoming a multi-concept holding
company. The regional fit, experienced management team and thirty-year operating
history of the company make Old San Francisco an appropriate addition to our
restaurant mix. We expect to realize significant synergies in purchasing and other areas
that will accelerate in 1999.''
Restaurant Teams International, Inc. is the developer and operator of the Fresh'n Lite
Cafe & Grill and Street Talk Cafe concepts, full service casual dining concepts featuring
over 100 choices of low fat and non-fat items without compromising taste, service, or
atmosphere.
This press release contains forward looking statements, which are generally preceded
by word such as ''projects'', ''projected'', ''intent'', ''believes'', ''expects'', ''anticipates'',
or ''intends''. Such statements are subject to risks and uncertainties, including but not
limited to competitive conditions, financing, weather, real estate zoning and permitting
complications and general conditions in the restaurant market.
For further information contact: Henry Leonard, President and Chief Operating Officer
at 800-259-2675.>>>>
Happy investing!
KZAP
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