D’angelo Franchisees Open New Shop In Manchester, Connecticut

Site Marks First Shop in Three-Unit Development Agreement for Hartford Market

DEDHAM, MASSACHUSETTS (Wednesday, October 20, 2004) - D’Angelo Sandwich Shops announced today that Robert Pagani and Robert Neil, partners in Angelo D LLC, a D’Angelo franchisee, have opened a new location at 241 West Middle Turnpike in Manchester, Conn., a suburb of Hartford. The new shop debuted on August 25 and is the first of three shops currently planned for markets surrounding Hartford, Conn . Pagani and Neil plan to open additional sites in South Windsor and Glastonbury.

“This is an important milestone in our franchise-development effort, as it initiates a series of planned openings that will quickly push us toward our expansion goals for Hartford,” says Vince Brown, Senior Vice President of Restaurant Development for D’Angelo. The company’s strategic growth plan would bring 10 new sandwich shops to the Hartford market over the next several years.

“We expect to sign another development agreement in the market in the near future that, in conjunction with the sites Bob Pagani and Bob Neil plan to open, will let us achieve critical mass in the market, giving us more and better opportunities to market the D’Angelo brand and giving local consumers greater access to our popular food,”Brown adds.

A Mouth-Watering Offering

D’Angelo is best known for grilled sandwiches that are made fresh to order, including its top-selling Steak & Cheese and its signature Number 9 Ò, a steak grilled with peppers, mushrooms, onions and cheese. The restaurants also offer a catering program highlighted by the 29-inch “Great Divide Ò,”a sandwich overflowing with ingredients like 100% real lobster, cold cuts, freshly grilled steak or chicken and a variety of other crowd-pleasers.

The full D’Angelo menu includes freshly made hot and cold sandwiches, wraps, soups and salads, a combination that has made the restaurant a fixture of the New England quick-service restaurant scene and enabled D’Angelo to grow to more than 200 company-owned and franchise shops. D’Angelo is continuing to expand throughout New England, but also is looking to branch out to strategic markets throughout the United States, and hopes to add 400 new locations over the next several years.

To facilitate this expansion, the company is seeking qualified franchise investors with minimum net worths of $400,000 and liquid assets of at least $70,000, and recently streamlined operations to decrease the average initial investment for individual locations by more than $100,000.

In recent months, the chain also has rolled out a number of new products designed to keep its menu fresh while preserving its core offering. Among its most notable recent introductions are: a revamped soup line featuring unique selections such as “Maine Lobster Bisque” and a Steak and Cheddar soup based on D’Angelo’s Classic #9 Steak and Cheese sandwich; a “double-stuffed” version of its popular seasonal sandwich, the Lobster sub; and salad versions of its popular Steak Tips and Turkey Tips sandwiches, which debuted last spring. Such innovations have helped D’Angelo attract a growing corps of loyal customers as well as merit industry kudos, including being named one of the top 20 chains with fewer than 300 units in the August issue of QSR, a restaurant trade magazine.

Seasoned Operator Calls ‘First Dibs’on Opportunity

Pagani, who works in commercial real estate but spent 30 years in the restaurant industry, first became aware of the D’Angelo franchise opportunity when he was approached to review the concept by a client who was considering investing in the restaurants himself. As he researched the chain, Pagani says, he became increasingly attracted to its brand strength, menu and sophisticated support systems. But what convinced him to become a franchisee, he explains, was D’Angelo’s growth potential.

“I liked the quality of the product,” Pagani says, “but what really appealed to me was the fact that because the chain is in the early stages of franchise development, I wouldn’t have to compete for each location as I would likely have to do in a larger system.”

Neil, who has partnered with Pagani in past business ventures, left a position as a restaurant manager to assume day-to-day stewardship of the new D’Angelo shop, and will similarly oversee activity at the other two shops once they open. He says Manchester holds strong potential for the D’Angelo quick-service restaurant offering.

“With institutions such as the Manchester Memorial Hospital and Manchester Community College, Manchester has a large pool of people who meet the target demographic of D’Angelo customers. We think our restaurant will be well-received,”he says.

Early reaction has indeed been favorable. Pagani and Neil held a festive VIP Party for the local Chamber of Commerce on August 15, followed by a well-attended “Friends and Family”reception at the new shop on the eve of its opening, and a Grand Opening on August 25 that included a Ribbon Cutting conducted by the franchisees, their staff, and members of the Manchester financial and business community.

Brown says as the Manchester store gets more and more settled into its business routine, both D’Angelo and the Pagani-Neil partnership are becoming increasingly eager to move on to the next opening.

“With their multi-unit investment and experience in the restaurant/foodservice industry, Bob Pagani and Bob Neil represent ideal franchise candidates for us. Once these sites are successfully underway, we hope to explore additional opportunities with them,”he says.

About D’Angelo and D’Angelo Franchising Corp.

Dedham, Mass.-based D’Angelo Franchising Corporation was incorporated in April 1998 and began operating and franchising D’Angelo Sandwich Shops in February 2000. Franchise opportunities have been available via predecessors since 1988. D’Angelo Sandwich Shops specialize in great-tasting, made-to-order submarine sandwiches, hot and hearty soups and fresh salads. The company was founded on a simple, honest philosophy: Put the best-quality ingredients in the freshest bread for a reasonable price and serve it quickly. All products meet the highest standards of quality.

The D’Angelo brand was established in January 1973 by a former affiliate, D’Angelo, Inc., which operated corporately owned restaurants. There are currently 216 D’Angelo Sandwich Shops in operation as standalone units and in tandem with Papa Gino’s, a sister company.

D’Angelo’s strategic growth plan calls for 400 new locations in the next five years. To facilitate this expansion, the company recently streamlined operations to decrease the average initial investment per unit .

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