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Crittenden Retail SpaceTM Crittenden Research, Inc. P.O. Box 1150 Novato, CA 94948 (800) 421-3483

Vol. 26, No. 11 June 4, 2012 all (800) 421-3483. GYM GIANTS EYE AGGRESSIVE GROWTH

The fitness industry enjoys a sturdy diet of expansion with growth across the board and many large chains vying for even more prominent positions as national gym giant Bally Total Fitness looks to be shrinking into the background. LA Fitness bought 17l locations from Bally in November and has been spending time, energy and money to upgrade the locations it wants to keep. It also wasted no time closing several of the acquired locations. A group of private equity firms own a majority of LA Fitness but, considering the size of the recent splash, the owners could be looking at an IPO in the next few years, which would infuse enough funds to allow LA Fitness to pull away from the pack in what is a tight horserace at the top. Rival Planet Fitness will finish this year with 130 new clubs, its second straight year of 100-plus new clubs. Snap Fitness pencils in another 100 to 125 new stores by year-end, which would give it 160 to 185 for the year. Gold’s Gym plans 80 more locations for 2012. And 24 Hour Fitness will open, replace and remodel a total of 15 to 20 locations in 2012 and 2013. Regional chains Retrofitness, Town Sports International, Life Time Fitness and Zoo Health will also add locations over the next few years.

In addition to its large sale, Bally, once a national powerhouse, has closed 210 locations since November, reducing its club count to 60. That clearly leaves LA Fitness in a strong spot for the future. The company’s purchase of the Bally locations instantly upgraded its presence in several major markets, including 40 clubs in California, as well as 27 locations in the Chicago market, 13 in Philadelphia, and 12 each in Miami and Washington, D.C. All told, LA Fitness, which now counts more than 500 locations, also added tens of thousands of paying, instant members to its system. On the organic growth front, LA Fitness will open 50 clubs both this year and in 2013. The company will follow up earlier new clubs in Tucson, Ariz.; Hawthorne and Woodland Hills, Calif.; and Bellevue, Wash.; with additional units in all three states. All of Texas, the East Coast and Northern California are prime growth areas. Look for new clubs to also open in Arizona Arkansas, Connecticut, Florida, Georgia, Idaho, Illinois, Louisiana, Maryland Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Virginia and Wisconsin. LA Fitness can open in 35,000 to 60,000 s.f. on pads of 4 to 5.5 acres each and 25,000 s.f. in urban locations.

To meet its aggressive growth goals, Planet Fitness will convert former Circuit City locations as well as take outparcels next to enclosed malls as an alternative property type. The 535-club chain will open in September on an outparcel next to Meadowbrook Mall in Clarksburg, Tenn. Planet Fitness is building out the 23,000 s.f. space itself. The space was formerly a High Point Furniture location. The health and fitness chain will break into Arkansas, Kentucky and Tennessee this year, in addition to adding on in California, Indiana, Iowa, Michigan and Ohio. The health clubs need 17,000 to 22,000 s.f.

Gold’s Gym reduces its club size to 8,000 to 12,000 s.f. for future Express locations, its main growth concept. The Express footprint is half the size of the 15,000 to 30,000 s.f. needed for full-service clubs. Look for Gold’s Gym Express to enter California, Iowa, Kentucky, New York and Vermont this year, as well as returning to Texas for more deals. The Lone Sitar State accounts for four of the Express locations now open. Gold’s Gym rolled out the Express format last year. The company also acquired 11 former Spectrum Athletic Club locations in San Antonio, Texas in February. Gold’s Gym was considering acquiring Bally locations. However, the massive LA Fitness/Bally deal squelched that possibility. Gold’s Gym operates 600 clubs worldwide, including 400 in the U.S.

Retrofitness includes its first locations in California among its 25 new locations for this year and 25 to 30 for 2013. Existing markets in its core states of New Jersey, New York and Pennsylvania are also on the books. The 80-unit chain has 45 locations under construction. Retrofitness prefers to open new clubs in 12,000 to 14,000 s.f. although it will drop to 10,000 s.f. or expand to 15,000 s.f. in some cases Continued on Next Page

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RETAILER UPDATE

Company: Dave & Buster’s Entertainment,. Inc. Expansion Goal: 4 Merchandise: Restaurant/Casual Dining Sites Needed: 3 (Maximum) Brand(s): Dave & Busters Number of Locations: 58

Notes: The entertainment-driven restaurant concept will exceed last year’s net gain of one location with four in 2012. Dave & Buster’s likes the response to its latest design, a 25,000 s.f. footprint, which opened in the first quarter in Oklahoma City, Okla. all (800) 421-3483. The other 2012 openings will be in Dallas; Orland Park, Ill.; and Boise Idaho. The future Dallas location will be 40,000 s.f. while the rest will be 25,000 s.f. Dave & Buster’s also has an S-1 filing completed, a first step towards an Initial Public Offering (IPO). Formerly a public company, Dave & Buster’s has been privately held since March, 2008. The chain finished last year with positive restaurant comps of 2.2 percent. Total revenue for 2011 improved by 3.8 percent to $541.5 million, compared to the previous year’s $521.5 million. Dave & Buster’s needs a daytime population of 100,000 within three miles of a potential site. The company also recently hired former BJ’s Wholesale Club executive John B. Mulleady, as its Senior VP of Development.

Contact(s): Dave & Buster’s, (Dave & Buster’s Entertainment, Inc.), 2481 Manana Drive, Dallas, TX 75225, David Pettengill, Real Estate, (214) 904-2579, [email protected]

GYM GIANTS EYE AGGRESSIVE GROWTH… Continued from Previous Page Meanwhile, 24 Hour Fitness will convert former Borders and Mervyns locations in addition to former Circuit City stores, supermarkets and theaters. The Pleasanton, Calif.-based chain will open locations in Los Angeles, San Diego, Denver, Portland and Seattle as well as adding on in Maryland, New Jersey, New York, Virginia and the Washington, D.C., area. The chain operates 421 locations.

Snap Fitness has opened 60 stores so far this year and looks to almost double that total by the end of the year. The vendor financing program will provide financing for exercise and operating equipment for a total of 20 locations, totaling $2.6 million in funding. The financing program can cover $135,000 $200,000 per location. Snap Fitness, a 2,500 to 4,500 s.f. space user, has provided financing for a total of 29 locations since the program started in January 2010. The clubs will take over former Movie Gallery spaces. Snap Fitness focuses on rural markets of 68,000 population. The franchisor has more than 1,200 locations.

Town Sports International concentrates on Boston and New York for its 10 to 20 new clubs over the next three years. The company has 50 locations pinpointed in these markets for future Boston Sports Clubs and New York Sports Clubs. The emphasis will be on the New York area. Towns Sports International will follow this year’s single new club with three to six in 2013 and another six to 12 more in 2014. New York Sports Clubs and Boston Sports Clubs both take 20,000 s.f. for most new locations, although there is a 40,000 s.f. design available. The 20,000 s.f., fitness-only format accounts for 106 of the 160 locations among the four concepts owned by Town Sports International, which include Washington Sports Clubs and Philadelphia Sports Clubs in addition to the New York and Boston locations. The smaller clubs can open in markets with 30,000 to 50,000 people; the larger locations need 50,000 to 100,000. The company will finish the second quarter with positive comps of 3 to 4 percent, following its 4.5 percent increase for the first quarter. New York Sports Club is the largest with 108 locations.

Life Time Fitness opened its 100th location last month in Sandy Springs, Ga., its third and final new unit for this year. The club’s 100,000 to 110,000 s.f. size has kept the number of new locations to three per year for the last four years, including 2012. The other 2012 openings were in Mississauga, Ontario in the Toronto area, the first in Canada, and Tulsa, Okla., the first in the Sooner State. Life Time Fitness is also converting nine former Lifestyle Family Fitness locations it acquired in December. The acquired centers are in Indiana, Ohio and North Carolina. Life Time Fitness had same-center sales of a positive 5 percent in the first quarter, its highest since 2004.

Expect Zoo Health to finish this year with approximately six new locations. The exact number will be determined by how many franchisees it can sign. Zoo Health has five locations under construction. Locations have opened in Simsbury, Conn., and Lake Worth, Fla., this year. Zoo Health and its affiliates — Fit Zone For Women and American Bodyworks — open in strip shopping centers in spaces of 3,000 to 20,000 s.f. The company has a total of 12 locations.

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NO BLUES FOR DENIM RETAILERS

Canada’s Silver Jeans Co. will add 25 to 30 stores in the U.S. during the next five years. The company only has one store here currently but Denise Norkus was hired last month to head up the new U.S. division. The second U.S. location will open early next year. Silver Jeans stores take 1,600 to 2,000 s.f. and the company is open to just about any property type. The first U.S. store opened in 2008 in Park Meadows Mall in Lone Tree, Colo. The Canadian entry will have multiple rivals for the U.S. jeanswear all (800) 421-3483. dollar. Levi Strauss & Co. will arguably provide the most intense competition with its 492 company- operated stores under three nameplates and $4.8 billion in total sales, including its wholesale business. True Religion Apparel, Joe’s Jeans, Lucky Brand, 7 For All Mankind and sister divisions Lee and Wrangler and Blink are other jeans retailers with plans to expand their presence in the U.S.

Levi Strauss opened 62 stores last year. Combined sales for the retail stores and online businesses accounted for 21 percent of the company’s total sales in the first quarter. That figure has been steadily rising since at least 2009, when it was 11 percent, which is a strong indicator for future growth in Levi’s direct-to-consumer business, including brick-and-mortar. Its corporate stores do business as Levi’s Stores, Levi’s Outlet Store and Dockers Outlet. The mall stores need 2,000 s.f.

San Francisco-based Levi Strauss will also open two of its affiliate Industrie Denim stores this fall, one each in Dallas and New York, both markets where it already has stores. Look for future stores in Boston, Denver, Los Angeles, Seattle and Portland, although all these are at least a year away. The first two Industrie Denim stores opened last October in San Francisco and Scottsdale, Ariz., followed by the first Dallas and New York locations. Industrie stores need 3,000 to 5,000 s.f. and carry brand name denim product manufactured by Levi Strauss, including Levi’s Red Tab, Levi’s Made and Crafted and Dockers.

True Religion will open 13 U.S. stores this year, including its first in Utah, in Salt Lake City. The state- wide debut store opened on March 22 in the City Creek Center. The premium jeans chain will finish this year with 134 stores, including locations in Canada, and feels it can eventually reach 170 stores in the U.S. alone. It looks increasingly at opportunities in Canada as well to take advantage of a dearth of competition north of the border. True Religion has increased its store count ever year since 2006, going from four to 108 at the end of 2011. The company finished its first quarter with positive comps of 13.3 percent. Combined net sales for the stores and internet businesses were $65.5 million for the quarter, a 22.6 percent increase. It was the first year-over-year increase in net sales since the fourth quarter of 2008. The True Religion stores average 1,500 s.f. The company can be flexible in some cases but looks first and foremost at A-level malls and lifestyle centers, as well as downtown streetfronts.

Joe’s Jeans pushes for Century Mark

Look for Joe’s Jeans to open 10 stores this year — eight full price and two outlets. The 23-store chain wants to reach a total of 100 stores by 2017. The jeans stores look first to their familiar markets in Florida, Texas and Southern California. Joe’s Jeans opened its sixth store in the Miami market in April, taking a slot in the Adventura Mall in Adventura Fla. The new stores will be smaller than in the past to reduce buildout costs, going from 2,300 s.f. to 1,500 to 1,800 s.f. for mall and downtown locations and 1,500 to 2,000 s.f. in outlet centers. The mall and downtown stores can now open for $250,000, compared to $600,000, while outlet stores now cost $200,000, compared to $250,000. Joe’s Jeans had had positive comps of 22 percent during the first quarter, helping boost total sales to $5.2 million, a 40 percent increase year over year. The jeans chain has improved total sales ever year since 2006, going from $39 million to $56 million.

The Lucky Brand division of Fifth and Pacific Cos. — formerly Liz Claiborne Inc. — looks to outlets for six of this year’s 10 new stores. The others will be full-price, specialty locations. Lucky Brand opened two outlet stores and closed seven specialty stores in the last 12 months starting with the first quarter of 2011. Lucky Brand now has 178 full price stores and 41 outlet locations. The chain will finish this year with positive comps in the low teens. Lucky Brand had positive comps of 22 percent for the first quarter. The jeans stores open in 2,400 s.f. Liz Claiborne Inc. sold the rights to the Liz Claiborne brand in May so it could concentrate on growing its three retail concepts. Fifth and Pacific also operates Juicy Couture and Kate Spade in addition to Lucky Brand. Continued on Next Page

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NO BLUES FOR DENIM RETAILERS… Continued from Previous Page Expect 7 For all Mankind to keep adding stores throughout the year. Its 67 locations make 7 For All Mankind the largest jeans chain operated by VF Corp. 7 For All Mankind finished the first quarter with an 18 percent increase in revenues, thanks to new lines of denim and sportswear. The 7 For All Mankind stores can open in malls, lifestyle centers and downtowns and need 1,800 to 2,800 s.f. Lee and Wrangler, part of the jeanswear division of VF Corp., helped the division improve revenues by 9 percent in the first all (800) 421-3483. quarter. Lee and Wrangler operate 45 and 21 locations respectively.

Blink, a division of Wet Seal Inc., has two locations, in Anaheim, Calif., and Orlando, Fla. The Florida location opened in November as part of the Walt Disney World Resort in Lake Buena Vista, Fla. The first Blink store opened in Disneyland Park in Disneyland. Blink provides an extension of the popular Blue Asphalt product in the Wet Seal stores. Blink started in July 2010, with a temporary location.

CONTACTS

Company (Parent Company) Address Contact/E-Mail Address Phone Number/Fax

24 Hour Fitness Centers 12647 Alacosta Blvd. Peter Berkowitz (925) 543-3307 (Forstmann Little & Co.) San Ramon, CA 94583 VP, Real Estate and Strategy fax: (925) 543-3200 http://www.24hourfit.com [email protected]

7 For All Mankind 4440 E. 26th St. Thomas Moore (323) 406-5300 (VF Corp.) Los Angeles, CA 90058 VP, Retail Real Estate http://www.vfc.com [email protected]

Blink 26972 Burbank Nick Dialynas (949) 699-3900 (The Wet Seal, Inc.) Foothill Ranch, CA 92610 VP, Real Estate fax: (949) 699-4847 http://www.wetseal.com [email protected]

CiCi’s Pizza 1060 W. Bethel Road Deb Chappell (972) 745-9395 (CiCi Enterprises, LP) Coppell, TX 75019 Director of Real Estate fax: (972) 745-4204 http://www.cicispizza.com [email protected]

Domino’s Pizza 30 Frank Lloyd Wright Drive Theresa Greiser (734) 930-3030 (Domino’s Pizza LLC) Ann Arbor, MI 48106 Corporate Real Estate http://www.dominos.com [email protected]

Midwest Craig Garwood (816) 351-2000 Franchise Development Leader [email protected]

Southeast (704) 280-0069 Mike Wooton Franchise Development Leader [email protected]

Gold’s Gym 125 E. John Carpenter Freeway Taylor Woods (214) 296-5015 (Gold’s Gym Inc.) Irving, TX 75062 Franchise Sales Representative http://www/goldsgym.com [email protected]

Golf Galaxy 300 Industry Lane Jan Tucker (724) 273-3514 (Dick’s Sporting Goods, Inc.) Pittsburgh, PA 15275 Director of Real Estate fax: (724) 227-1688 http://www.golfgalaxy.com [email protected]

Golfsmith 11000 N. IH 35 Adrian Gonzalez (512) 837-4810 (Golfsmith International Austin, TX 78753 VP, Real Growth & Development fax: (512) 837-1019 Holdings Inc.) [email protected] http://www.golfsmith.com

Joe’s Jeans 2340 South Eastern Ave. Katie Hurley (323) 837-3700 (Joe’s Jeans Inc.) Commerce, CA 90040 VP, Retail & Marketing fax: (323) 837-3790 http://www.joesjeans.com [email protected] *prefers contact via emai

LA Fitness 3161 Michelson Drive John G. Gabriel (949) 255-7262 (LA Fitness International) Suite 600 Franchise Real Estate fax: (866) 431-3716 http://www.lafitrness.com Irvine, CA 92612 [email protected]

George L. Frye (949) 502-2129 Franchise Real Estate fax: (886) 431-3716 [email protected]

Greg S. George (949) 255-7453 Franchise Real Estate fax: (886) 431-3716 [email protected]

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CONTACTS Continued from Previous Page Company (Parent Company) Address Contact/E-Mail Phone/Fax

Levi’s Store , Levi’s Outlet Store, 11555 Battery St. Real Estate Department (415) 501-6000 Dockers Outlet San Francisco, CA 94111 fax: (415) 501-7112 (Levi Strauss & Co.) http://www.levistrauss.com

all (800) 421-3483. Life Time Fitness 2902 Corporate Drive Dave De Cou (952) 229-7405 (Life Time Fitness Inc.) Chanhassen, MN 55317 VP, Development, Research http://www.lifetimefitness.com ddecou@;lifetimefitness.com

Lucky Brand Jeans 540 S. Santa Fe Ave. Real Estate (213) 443-5700 (Fifth and Pacific Cos.) Los Angeles, CA 90013 http://www.FifthandPacific.com

Marco’s Pizza P.O. Box 23210 Lauren Johnson (419) 724-1867 (Marco’s Franchising LLC) Toledo, OH 45202 Franchise Development Coordinator fax: (419) 885-7200 http://www.marcos.com [email protected]

New York Sports Clubs, Boston 5 Penn Plaza Raymond Dewhirst (917) 656-1140 Sports Clubs, Philadelphia Fourth Floor VP, Real Estate & Development fax: (917) 698-0243 Sports Clubs, Washington New York, NY 10001 [email protected] Sports Clubs (Town Sports International Holdings) http://www/.mysportsclubs.com

Papa John’s Pizza 2002 Papa John’s Blvd. Tim O’Hern (502) 261-4209 (Papa John’s International Inc.) Louisville. KY 40299 SVP, Development fax: (502) 261-4705 http://www.papajohns.com [email protected]

Peggy Bentley (502) 261-4214 Development Assistant fax: (502) 261-4705 [email protected]

PGA Tour Superstore South Harbor Capital Duke Sullivan (678) 718-1885 (Golf & Tennis Pro Shop, Inc.) 5660 New Northside Dr. Real Estate Representative http://www.pgatoursuperstore.com Suite 100 [email protected] Atlanta, GA 30328

Pizza Hut 14841 N Dallas Pkwy. Ed Maurer (972) 338-7700 (Yum! Brands Inc.) Dallas, TX 75254 Franchise Development Manager fax: (972) 338-6869 http://www.yum.com [email protected]

Rudy Janecka (972) 338-7700 Franchise Development Manager fax: (972) 338-6869 [email protected]

Pizza Inn, Pie Five 3551 Plano Parkway Corporate Locations (Pizza Inn Holdings, Inc.) The Colony, TX 75076 Madison Jobe (469) 384-5000 http://www.pizzainn.com COO, Chief Development Officer http://www.piefive.com [email protected]

Franchised Locations Dino Chavez (469) 384-5000 VP, Franchise Development [email protected]

Pizza Ranch 204 19th St. SE Corporate Locations (Pizza Ranch Inc.) Orange City, IA 51041 Scott Groeneweg (712) 707-8800 http://www.pizzaranch.com Director of Field Operations (712) 707-8825 [email protected]

Franchised Locations Marilyn Mayberry (712) 707-8800 VP, Franchising fax: (712) 707-8826 [email protected]

Planet Fitness 26 Fox Run Road Brian Kunkel (603) 750-0001 (PLA-FIT Franchise LLC) Unit 15 Brand Development fax: (603) 750-0004 http://www.planetfitness.com Newington, NH 03801 [email protected]

Retrofitness 43 County Road 537 W. Mark Mele (732) 431-0062 (RetroFitness LLC) Colts Neck, NJ 07722 VP, Franchise Sales fax: (732) 431-0022 http://www.retrofitnessllc.net [email protected]

Snap Fitness 2411 Galpin Court Rochelle Jacobs (952) 567-5818 (Snap Fitness) Suite 110 Real Estate fax: (952) 474-5416 http://www.snapfitness.com Chanhassen, MN 55317 [email protected]

True Religion Brand Jeans 2263 Vernon Ave. Marc Klein (323) 266-3072 (True Religion Apparel Inc.) Vernon, CA 90058 VP, Real Estate fax: (323) 266-8060 http://www.truereligionbrandjeans.com [email protected]

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CONTACTS Continued from Previous Page Company (Parent Company) Address Contact/E-Mail Phone/Fax

Zoo Health, Fit Zone for Women, Thur Retail Associates Jon Cashion (561) 395-2441 American Bodyworks, 433 Plaza Real Real Estate Representative fax: (561) 431-3133 (Diversified Health & Fitness Inc.) Suite 275 [email protected] http://www.diversifiedhf.com Boca Raton, FL 33432 all (800) 421-3483. Corporate Address: 1850 SE 17th St., Fort Lauderdale, FL 33316

CORRECTION: In the April 16 issue, Patricia Dining was named as the real estate contact for Burke’s Outlet. She is the contact for Beall’s Department Stores. The correct contacts should read as follows:

Beall’s Department Stores E.R. Beall Center Main Contact (Beall’s Inc.) 700 13th Ave. E. Patricia Dinning (941) 744-4638 http://www.beallsinc.com Bradenton, FL 34208 Real Estate fax: (941) 744-4931

Burke’s Outlet, Beall’s Outlet AL, GA, LA, MS, FL (West) (Beall's Inc.) Phil Knuth (941) 794-4719 http://www.beallsinc.com Regional Real Estate Manager fax: (941) 744-4931 [email protected]

AZ, CA, NM, NV, TX, FL (East, Panhandle & Keys) Lauri Mendoza (941) 744-4194 Real Estate Manager fax: (941) 744-4931 [email protected]

KY, NC, SC, TN, VA, WV Paul Richardson (941) 730-0846 Real Estate Manager fax: (941) 744-7931 [email protected]

PIZZA LEADERS PICK UP PACE

The most aggressive chains in the pizza category adjust their development models to meet growth goals. Papa John’s International Inc. waives its franchise fees for the first 18 months to generate more franchise growth. Not to be outdone, Marco’s Pizza signs a development agreement with Family Video to open a total of 250 locations over the next four years. Meanwhile, CiCi’s Pizza and Pizza Inn utilize new, smaller designs to open up new property types while Pizza Ranch will enter three states through 2012.

Papa John’s and its pizza pie contemporaries have an open path to development in the U.S. Pizza Hut and Domino’s — the first and second-largest pizza chains worldwide respectively — will both concentrate outside the U.S. for most of their new units. That is fine with Papa John’s, which plans to add 110 to 130 locations nationwide in 2012. It also has a total of 1,550 locations stacked up in its pipeline, several of them in the Northeast and on the West Coast. Papa John’s hopes to finish this year with positive comps of 1.5 to 2.5 percent, which would be its eighth consecutive year of flat to positive comps. The pizza franchisor opened 124 locations last year to finish 2011 with 3,061 locations. The restaurants prefer end caps and open in 1,400 to 1,600 s.f.

Meanwhile, Marco’s Pizza pencils in an all-time high of 102 new locations for this year, not including any deals with Family Video. It opened 61 last year, a record for the company, which has been in business since 1978. The pizza chain turns to Arkansas, California, Oklahoma and Texas for its new locations for the next two years, although the company will consider sites throughout its existing 21-state area, which includes Kansas, North Dakota, Pennsylvania and West Virginia. The franchisor already has sites purchased for openings through 2017. Marco’s Pizza will convert former restaurant spaces as a way to use the existing chains’ HVAC systems. The first Marco’s Pizza on a Family Video-owned property opened in Wheeling, Ill., with several to follow in both Illinois and Indiana. The two Midwest states are expected to account for 50 to 75 new units under the development agreement with Family Video.

The number of Marco’s Pizza/Family Video deals includes openings inside Family Video stores or in shopping centers owned by the video store chain. Both Marco’s Pizza and Family Video already open in similar open air shopping centers. The pizza restaurants need 1,500 to 2,000 s.f., regardless of whether they open on their own, inside a Family Video store, or in the same center as the video stores. The pizza locations can also drop down to 900 s.f. Continued on Next Page

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PIZZA LEADERS PICK UP PACE… Continued from Previous Page Marco’s Pizza includes a non-compete clause preventing other pizza or Italian restaurants from opening in the same center. The pizza franchisor has a total of 282 locations.

CiCi’s Pizza can drop down to 1,200 to 1,500 s.f., after rolling out a to-go only design in April in Orlando, Fla., inside a Shell gasoline station. A second small-design location will open this July in Ocala, Fla., and all (800) 421-3483. another in Dallas before year-end. These smaller locations can also open inside convenience stores, airports and transportation centers, all property types which the 4,000 s.f. buffet style locations cannot touch. CiCi’s Pizza also has a 3,000 s.f., small-town or urban format design available.

Expect CiCi’s Pizza to open 20 to 30 locations this year, before accelerating to 30 to 35 in 2013 and eventually reaching 50 new units a year by 2020. The chain will almost double its current 550 locations by meeting its eight-year goal. CiCi’s Pizza considers its home state of Texas a prime area for new locations, along with San Diego, Los Angeles and Philadelphia; Broward, Dade, Miami and Orlando, Fla.; and pockets of New Jersey and New York. Potential franchisees need to have $250,000 in liquidity and $750,000 in net worth.

Smaller Locations Key to Growth

Pizza Inn Holdings goes smaller, too. Its Pie Five Pizza format calls for 2,100 s.f., compared to 4,500 s.f. for its buffet style Pizza Inn locations. Pie Five will add two more locations by the start of its new fiscal year in early July, pushing the concept to eight system wide, before accelerating to four to five new locations per year starting in the following FY, most of them in the Dallas/Fort Worth area. Pie Five can open in the larger MSAs than Pizza Inn because of its lower investment costs. Pizza Inn locations typically open in markets of less than 75,000 because of the investment needed. The chain looks to open 10 to 20 locations per year, nearly all of them in the last two quarters of the year. The chain opened one location and closed five through the end of the second quarter on Dec. 25. Pie Five opened three locations and closed none over the same six months. There are 289 Pizza Inn locations worldwide, while Pie Five has six.

Look for Pizza Ranch to open its first locations in Colorado, Montana and Wyoming, on the way to adding 16 to 19 locations for the year. The Kansas City market will account for three to four more openings this year, in addition to new stores in Iowa, Minnesota, and Wisconsin. The 12th location in Wisconsin opened on May 1 in Portage. However, at least three locations will open in Green Bay as well as more in Madison and Milwaukee, Wis. The market debut location in Green Bay opened on April 23. Pizza Ranch typically opens in 5,000 to 6,000 s.f. The restaurants can take over a wide variety of existing spaces or do a new build, providing the locations have at least 100 parking spaces. Pizza Ranch operates 163 locations in the Midwest in nine states: Kansas, Illinois, Iowa, Michigan, Minnesota, Nebraska, North Dakota, South Dakota, and Wisconsin.

Pizza Hut will finish this year with a net increase in restaurant count for the U.S. The largest pizza chain in the U.S. with 6,067 locations, Pizza Hut finished the first quarter with 25 new locations nationwide. Comps for the U.S. locations were a positive 5 percent for the first quarter. However, this improvement is a shadow of the 14 percent improvement for the China locations in the quarter, the best of any region. Parent company Yum! Brands Inc. will invest funds from the sale of company-operated Pizza Hut locations in the U.S. into future new locations in China and India. Yum! Brands will reduce its percentage of company-operated Pizza Huts in the U.S. from 7 percent to 5 percent. The restaurants need 2,500 to 4,000 s.f. for dine-in locations and 1,600 to 2,000 s.f. for delivery-only locations.

Meanwhile, Domino’s Pizza will concentrate on India, the United Kingdom and other international markets for nearly all of its 350 to 450 new locations. The delivery leader expects to expand its 439 locations in India to 1,000 over the long term. The restaurants in India have earned their stripes by improving same- restaurant sales by a total of 21 percent over the last five years. The company also plans to eventually take its 670 locations in the U.K. to a total of 1,100. Domino’s opened 33 locations in the U.S. last year but 200 internationally. The company finished 2011 with 4,907 locations nationwide and 4,835 internationally. The locations need 1,200 to 1,600 s.f. for freestanding locations; 1,000 s.f. when going into a shopping center; and 600 to 1,000 s.f. when opening inside a convenience store.

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SWING LEADER TO MATCH 2012 PACE

Golfsmith checks sites now for next year’s 10 to 12 new stores. The golf equipment and apparel chain wants to get as many stores open by May 2013 as possible, requiring it to work ahead. Golfsmith will finish this year with 10 new stores, including four which opened last month. The merger of Golfsmith and Golf Town, the largest golf equipment chain in Canada, will create the largest off-course golf equipment and apparel chain with a total of 142 locations in the U.S. and Canada. The merger should be finalized all (800) 421-3483. during the third quarter. Golfsmith operated a total of 81 stores when the definitive agreement to merge with Golf Town was announced on May 14. Golf Town’s seven locations in the U.S., all in the Boston area, will be converted to Golfsmith.

Even before the acquisition, Golfsmith was more aggressive than Golf Galaxy and PGA Tour Superstore as far as new stores. Look for Golfsmith to return to the Kansas City market next year. The golf equipment and apparel stores will convert former Borders location and other vacant big box spaces. Golfsmith needs 20,000 to 38,000 s.f. The golf superstore chain had positive comps of 8.5 percent for the first quarter.

Meanwhile, Golf Galaxy, with 81 stores, will not open any new stores this year. It will instead relocate five and reposition another two. Golf Galaxy did have positive comps of 12.6 percent for the first quarter. PGA Tour Superstore will open one more store this year. The Superstore chain will open in Downers Grove, Ill., on June 14, its second and likely final opening for this year. The other 2012 opening was last month in Schaumburg, Ill.

The PGA Tour Superstores require 45,000 to 60,000 s.f. per store, limiting the number of new locations it can open per year. The Downers Grove will be 45,000 s.f. and was formerly a Rossi Furniture store. The Schaumburg location, its first opening in both Chicago and the Midwest, is 60,000 s.f. and was formerly a Great Indoors store, a division of Sears. PGA Tour Superstore will have 14 stores with the opening of the Downers Grove location. There are also locations in Arizona, Colorado, Florida and Georgia.

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