Donatos

Franchise Growth Adds 82 Stores and Two States to Donatos Pizza's Footprint in Next Five Years

Donatos enters North and South Carolina markets, expands in new and existing markets in Ohio

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10/23/2007 (COLUMBUS, Ohio) --Donatos Pizza has positioned itself to take a larger slice of the pizza industry with new franchise partnerships that will introduce the Ohio-based pizza brand to North and South Carolina and expand its home-state footprint. The partnerships will result in seven new stores in 2007 and at least 75 more locations during the next five years.



“We are thrilled with the franchise relationships we are building to bring Donatos Pizza to consumers in new markets,” said Jane Grote Abell, Donatos president and COO. “Our franchise partners are well-known, successful companies that are both highly experienced in the quick-service restaurant industry and passionate about our brand and products.”



Donatos’ partnership with Piedmont Pizzeria, LLC is the largest franchise deal of the company’s 44-year history. During the next five years, the Piedmont partnership will add 64 new stores in North and South Carolina to Donatos’ current 170-store presence in five states. With more than 20 years of experience operating restaurants in the Carolinas, Piedmont’s leadership team includes longtime successful Carolina restaurant veterans Joe Drury, Glenn Gulledge and Mark Ourant, who have extensive backgrounds operating quick-service concepts that include Wendy's, Bojangles and Just Fresh. Piedmont’s first Donatos store opened October 17 in Waxhaw N.C., just outside of Charlotte.



“Piedmont Pizzeria is proud to bring Donatos’ exceptional brand and quality products to North and South Carolina,” said Gulledge, managing partner with Piedmont. “This partnership marks a significant milestone for both companies. With the number of stores we are opening in the two states, we are bringing Donatos and Piedmont Pizzeria to the next level.”



Growth within Ohio

In addition to growth into the Carolinas, Donatos is expanding its footprint in Ohio with franchise stores in five new cities this quarter. Through new and existing franchise partnerships, locations in Athens, Ashland, Mason, Springboro and Toledo, Ohio, will be added to the existing store roster.



With Springboro planned to open in early November, Dayton has proved to be a successful market for Donatos and will continue to grow with additional store openings by area franchise partner, the Viking Group. Led by partner Todd Rogers, the Viking Group currently operates 16 Donatos restaurants in the Dayton market and will open three more in late 2007 and early 2008. “Our partnership with the Viking Group in Dayton is a great example of our many franchise success stories,” Abell added.



Also expanding its existing franchise operations is the Delaware, Ohio-based Breaking Bread Pizza Company. Headed by former Donatos executive, Tom Dumit, Breaking Bread will operate Donatos’ first location in the Toledo market.

Another long-time Donatos veteran, Roger Howard, will become one of its newest franchise partners. Howard has been with the company for 36 years, playing various key roles, most recently serving as operations manager for the 60-store Columbus market. Following his dreams and embarking on a new career as a Donatos franchise partner, Howard will operate a restaurant in Columbus, with more stores to follow in Delaware County, Ohio.



“Roger has left a legacy on our company. He has been active in the development of our products, systems and people,” Abell said. “His passion for people and pride in our product was instrumental in our growth. Now, Roger will be growing the business as a franchise partner, and we couldn’t be happier to support him in fulfilling this dream.”



Positioning for Growth

To prepare for this growth, Donatos reviewed its store operations and building design. As a result, the company streamlined its point of sale system to improve the customer experience, and implemented an innovative dough proofing process to create a more consistent product and reduce the amount of in-store space needed to prepare the pizza dough. Donatos also began remodels on some of its outdated, pizzeria-style stores and opened new locations featuring a prototype, cutting edge design that includes counter service, an open kitchen and smaller dine-in area.



In addition, Donatos sought to create a favorable environment for franchise partnerships by reinvigorating its franchise program. The company built a core team focused on recruitment and support of its franchise partners by creating new corporate positions, bringing in new faces and promoting current associates. Spearheaded by Donatos- and industry-veteran Tom Krouse, who was named chief concept and strategy officer, the revitalized franchise program is credited with Donatos’ growth in Ohio and the Carolinas. Krouse is joined by Vice President of Operations Craig Burt, who joined the company this past spring and oversees company and franchise operations, and PizzAmbassador Jamie Davis, who leads new franchise business development.



“Donatos offers unique benefits for its franchise partners. We are a 44-year-old, established company with a reputation for providing quality products, and strong brand loyalty. Yet we also offer the benefits of a start-up company because we continue to lead the industry with innovative concepts and processes,” Krouse said. “This is an exciting time for us, as we join with respected restaurant companies such as Piedmont, Viking and Breaking Bread, to bring Donatos to new customers in new markets.”

Media contact:
Tom Santor
(614) 416-7700
tsantor@donatos.com