11 West Virginia Shoney’s Become Franchisee Owned and Operated

NASHVLLE, Tenn. (July 25, 2005) – Shoney’s Restaurants announced today that a total of 11 corporate-owned locations in West Virginia have been purchased and will be operated by three franchisees: Bobby Leftwich, Rory Smith and Hossein Nikzad. 

Rodger Head, president and COO of Shoney’s Restaurants, said, “Shoney’s current strategy is to increase the number of franchisee-owned restaurants.  In the next few months, more than 25 corporate restaurants throughout the United States will soon become franchisee owned and operated, and it’s only fitting that we begin this exciting transition right here in West Virginia, the birthplace of Shoney’s.”

Smith and Leftwich will own and operate 10 restaurants throughout West Virginia in cities including Charleston, St. Albans, Beckley, Princeton, Ripley, Lewisburg, Oak Hill, Dunbar and Logan.

Leftwich said, “Shoney’s brand has a solid reputation as one of America’s favorite family-dining restaurants, and to say I co-own 10 Shoney’s is a honor.”

Smith added, “Bobby and I have known each other for a number of years.  When the opportunity arose for us to become partners, we knew we couldn’t pass up this incredible opportunity.”

Nikzad will own and operate two stores, one in Parkersburg, W. Va., and the other in Marietta, Ohio.

Nikzad said, “I’m thrilled to own and operate two new Shoney’s Restaurants.  I currently own and operate two restaurants, and am pleased that Shoney’s continues to believe that I’m the right man for the job.”

Head said, “This is an exciting time at Shoney’s Restaurants.  For the first time in 13 years, Shoney’s is celebrating positive same-store sales.  That’s a direct result of the dedication and professionalism of franchisees like Bobby, Rory and Hossein who believe in the brand’s vitality and heritage.”

Last year, Shoney’s started a new initiative that focuses on re-franchising.  As part of this initiative, new franchisees receive more in-the-field training, restaurants will receive a new look and a new franchisee agreement was developed that encourages greater involvement in marketing decisions from operators.

Joe Phraner, vice president of franchise services at Shoney’s, says the focus on re-franchising has paid off. “Refranchising has played an important role in returning Shoney’s to the brand it once was. Franchisees now have more say in marketing efforts and are considered important contributors to our renewed success,” he said.