D’angelo Sandwich Shops Embarks On Major Expansion Effort In New England

DEDHAM, MASSACHUSETTS (Friday, August 15, 2003) - D’Angelo Sandwich Shops, a quick-service restaurant concept based here, has announced plans to increase the availability of its popular made-to-order grilled and deli-style sandwiches throughout New England. The company plans to build 400 units in the next five years by taking advantage of unsatisfied customer demand identified in existing markets, particularly those in Maine, New Hampshire, Vermont and western Massachusetts, and by continuing to execute a plan announced last year to open more than 50 units in Hartford, Conn., Albany, N.Y., and Long Island.

D’Angelo currently has 216 locations, 90 of which are in Massachusetts. Additional units are distributed throughout Connecticut, Maine, New Hampshire, Rhode Island and Vermont. Existing franchisees account for 54 of the chain’s locations, and new franchisees have been identified as the primary vehicle through which D’Angelo will achieve its growth objectives.

Qualified investors are now being sought to take advantage of this exceptional business opportunity. D’Angelo is seeking individuals with minimum net worths of $400,000 and liquid assets of at least $70,000.

Market Conditions, Recent Success Signal Strong Potential

According to Vince Brown, Senior Vice President of Restaurant Development, conditions within the economy and within the sandwich chain itself suggest that now is a very favorable time for D’Angelo to launch its expansion effort.

“The volatility of Wall Street and frustration with Corporate America continue to push higher-income individuals toward alternative investments,” Brown says. “Fortunately, this trend coincides with the rollout of our revitalized franchise program. Expanding throughout New England will allow us to leverage our existing brand awareness and corporate infrastructure and the relationships we have in place with banks, builders, realtors and other business affiliates.”

D’Angelo is currently celebrating the success of six units in travel centers along the Massachusetts Turnpike and another in Boston’s South Station Bus Terminal, all of which opened over the past two years months. The company also was named one of the top 25 quick-service restaurant chains based on average unit volume growth in a recent QSR Magazine ranking, having recorded an extra 4.1 percent in sales per unit from one year to the next.

Great Tastes, Greater Flexibility

In addition to the deli-style selections offered at many sandwich chains, D’Angelo restaurants feature a wide variety of items made-to-order fresh on a grill, broadening its appeal to more consumers and allowing the chain to distinguish itself with a higher-quality product.

“The grill provides for much greater menu flexibility and opens the door to a whole segment of selections whose quality our competitors typically can’t match,” Brown explains. “With freshly made signature sandwiches like our Steak & Cheese and Number 9? (steak grilled with cheese, mushrooms, pepper, onions and cheese) as well as high-quality items like sandwiches and salads made with freshly grilled chicken fillets, our restaurant’s menu selections compete not only with other quick-service businesses but also with the offerings at popular casual dining restaurants.”

Careful attention to quality has also enabled D’Angelo to add items such as Lobster Bisque and its popular Lobster Sub to its menu, further projecting the allure of more upscale, full-service restaurants while presenting the value and convenience of quick-service dining.

In addition, Brown says, D’Angelo is strategically positioned to respond to the growing consumer preference for menu options that combine taste with higher nutritional value. D’Angelo uses only lean cuts of steak, roast beef and all-natural turkey breast. Its D’Lites menu, which was carefully selected by a registered dietician, features nine flavorful sandwiches that have no more than seven grams of fat and makes it easy for health-conscious customers to maintain a balanced diet.

To make buying its products more convenient, D’Angelo recently began accepting credit cards, and customers paying with plastic have been purchasing an average 75 percent higher ticket than those paying with cash. Brown says such enhancements further strengthen the potential for D’Angelo to successfully claim a dominant role in many existing markets.

“Our goals are based on our market optimization analysis, in-depth research and planning and customer demand for our products. We feel these markets can support the level of development we’ve targeted for them and that such development will give us a strong concentration of regional brand awareness. Once we attain that, we will strengthen our focus on branching out to other markets that make logistical sense.”

About D’Angelo and D’Angelo Franchising Corp.

D’Angelo Sandwich Shops specialize in great-tasting, made-to-order grilled and deli-style sandwiches and fresh salads. The company was founded on a simple, honest philosophy: Put the best-quality meats, cheese and ingredients in the freshest bread for a reasonable price and serve it quickly. All products meet the highest standards of quality.

D’Angelo Franchising Corporation was incorporated in April 1998 and began operating and franchising D’Angelo Sandwich Shops in February 2000. The D’Angelo brand was established in January 1973 by a former affiliate, D’Angelo, Inc., which operated corporately owned restaurants. Franchise opportunities have been available via predecessors since 1988. There are currently 216 D’Angelo Sandwich Shops in operation as stand alone units and in tandem with Papa Gino’s, a sister company. D’Angelo Franchising Corp. currently has opportunities available throughout New England, Long Island, and upstate New York for qualifying investors with a minimum of $400,000 net worth, including $70,000 in liquid assets.

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