Area KFCs take multibrand approach

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by Paul Schreiber|ret||ret||tab|

SBJ Reporter|ret||ret||tab|

pschreiber@sbj.net|ret||ret||tab|

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An estimated $4.8 million campaign to increase food selections under a single roof is under way at Ozark Restaurants Inc.'s 16 KFC locations throughout southwest Missouri.|ret||ret||tab|

Renovations include adding branded restaurants Long John Silvers, A&W or Taco Bell to each KFC location.|ret||ret||tab|

"We hope to have all 16 southwest Missouri stores done by spring 2005," said Mike Treadwell, president and CEO of Ozark Restaurants, who bought 30 KFC restaurants for $17 million in December from Richard Pendleton, chairman of the board of Restaurant Systems Inc. and Treadwell's business partner. Beyond Missouri, stores are located in Kansas, Oklahoma and Illinois.|ret||ret||tab|

The cost to remodel stores runs about $300,000 each on average, Treadwell said. Southwest Missouri locations include Springfield, Marshfield, Nixa, Ozark, Carthage, Webb City, Lebanon and Joplin, he added.|ret||ret||tab|

Specific alterations include increasing seating, redoing the lobby, enlarging the kitchen to accommodate the new brand, exterior renovations and, typically, expanding the parking lot to a minimum of 37 spaces, said Malissa Hauswirth, vice president of marketing and development.|ret||ret||tab|

The changes are in accordance with the plans of Yum! Brands, the Louisville, Ky.-based parent company to KFC, Long John Silvers, Taco Bell and A&W, which operates more than 2,000 multibrand restaurants worldwide. Ozark Restaurants is a Yum! Brands franchisee, Hauswirth said.|ret||ret||tab|

To date, Republic-based Royal Construction has been the general contractor for all projects, Hauswirth said. Buddy Webb & Co. has done the architectural designs, she added.|ret||ret||tab|

In Springfield, however, changeover plans at three of the six KFCs have been scuttled and the properties sold, because the buildings' layout or footprint would not allow for the necessary expansion, said Hauswirth. She would not disclose the purchase price, but said proceeds would be used to acquire new restaurants.|ret||ret||tab|

The KFC locations at 2027 S. Glenstone, 2949 S. National and 2744 W. Chestnut were sold, Treadwell said. He did not disclose the buyer. Real estate broker Bart Collins of Mellinger Commercial could not be reached at press time.|ret||ret||tab|

Losing the three Springfield stores has had an impact on KFC's local food receipts, Treadwell said, but it has retained most of the business from those stores. "We have captured 50 percent to 75 percent of the sales we had in those other three restaurants and brought them to the other three stores." |ret||ret||tab|

Revenue for the 30 KFC stores in 2003 was about $25 million, Treadwell said, adding that a forecast for 2004 was difficult since many of the stores are in the process of remodeling and transition.|ret||ret||tab|

There are about 600 employees among Ozark Restaurants' 30 locations, he added. All employees are trained on multibranding at stores outside the area and then work with trainers in stores locally.|ret||ret||tab|

In Marshfield, a slightly different relationship is in place between KFC and Rib Crib, in which Treadwell also has ownership interests. In that location, a real estate partnership exists between the two food establishments, Hauswirth said. Treadwell is president of Bold Ribs Inc. and owns the business with Pendleton, manager, and Bob Luke, vice president of operations.|ret||ret||tab|

Yum! Brands has no ownership rights to the Rib Crib label, Hauswirth added.|ret||ret||tab|

Bold Ribs has two Rib Crib restaurants in Springfield, plus one each in Joplin, Branson, Marshfield and Rogers, Ark., Hauswirth said.|ret||ret||tab|

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