Marietta, Ohio, Shoney’s Restaurant Becomes Franchisee Owned and Operated

NASHVLLE, Tenn. (July 29, 2005) – Shoney’s Restaurants announced today that the corporate-owned Shoney’s Restaurant located at 44 Acme St. has been purchased and will be operated by franchisee Hossein Nikzad. 

 “Shoney’s current strategy is to increase the number of franchisee-owned restaurants because the brand works best in the hands of franchisees who have strong ties to the community,” said Rodger Head, president and COO of Shoney’s Restaurants.”  In the next few months, more than 25 corporate restaurants throughout the United States will become franchisee owned and operated.”

The Marietta restaurant will be Nikzad’s fourth Shoney’s.  The other three restaurants are located in Parkersburg and Morgantown, W. Va., and Dover, Ohio.

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

Head added, “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 Hossein who believe in the brand’s vitality and heritage.”

Last year, Shoney’s launched an 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.