Eight Missouri Shoney’s Restaurants Become Franchisee Owned and Operated

NASHVLLE, Tenn. (July 27, 2005) – Shoney’s Restaurants announced today that eight corporate-owned Shoney’s Restaurant in Missouri have been purchased and will be operated by franchisee Michael D. Cotter.

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.”

Cotter will own and operate restaurants throughout Missouri in cities including Springfield, Ozark, Lebanon, Rolla, Osage Beach, Neosho and Branson.  In addition, he will also own and operate one store in Harrison, Ark.

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

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 Michael 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.