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JB'S RESTAURANTS INC. COMPLETES HOMETOWN BUFFET AGREEMENT; ENTERS MID-PRICED BUFFET SEGMENT

 JB'S RESTAURANTS INC. COMPLETES HOMETOWN BUFFET AGREEMENT;
 ENTERS MID-PRICED BUFFET SEGMENT
 SALT LAKE CITY, Nov. 27 /PRNewswire/ -- JB's Restaurants Inc. (NASDAQ: JBBB), announced today the completion of its agreement to invest $3.8 million into Americana Entertainment Group Inc. ("AEG"), the parent company of HomeTown Buffet Inc., in exchange for an approximately one-third interest in AEG. In addition the company completed a franchise and exclusive area development agreement with HomeTown Buffet Inc. giving the company exclusive development rights to operate the HomeTown Buffet concept in Arizona, Colorado, New Mexico and Utah. This marks the company's entry into the rapidly growing mid-priced buffet segment.
 "The investment in AEG allows JB's to get in on the ground floor of an expanding mid-scale restaurant company while the franchise agreement enables JB's to expand the HomeTown Buffet concept in our primary markets," said Fred P. Gonzales, president and chief executive officer. "HomeTown Buffet adds an additional growth vehicle to the JB's Restaurants Inc. portfolio complementing our core JB's Restaurant concept and Sbarro growth plans. We are confident that the synergy of the three concepts (JB's, Sbarro and HomeTown Buffet) along with the substantial investment in AEG will lead to improved shareholder returns."
 The HomeTown Buffet concept was developed by C. Dennis Scott after his departure from Buffets Inc., a publicly traded restaurant chain which was co-founded by Scott. Buffets Inc. now operates and franchises over 100 Old Country Buffet restaurants in 18 states and is viewed as the leader in the mid-priced buffet segment.
 JB's joins Grace Ventures Partnership III (an international venture capital fund managed by Horn Venture Partners), C. Dennis Scott and other investors in providing capital for restaurant expansion. AEG plans to open 15 company-operated HomeTown Buffet restaurants over the next three years and expects accerlated growth in future years. JB's Restaurants Inc. is the largest individual shareholder of AEG.
 Under the terms of the exclusive area development agreement, the company plans to open a minimum of 12 HomeTown Buffet restaurants over the first three years of the agreement. It is expected that the expansion of HomeTown Buffet will be done through both conversion of existing JB's restaurants as well as new locations. The initial JB's operated HomeTown Buffet restaurant is expected to open in the Spring of 1992.
 "The HomeTown Buffet concept offers many advantages to JB's," added Gonzales. "First it is a proven concept as demonstrated by the success of the Old Country Buffet restaurant chain. In addition, there is little representation of the mid-priced buffet segment in the market areas we have identified for expansion which provides JB's with a significant competitive advantage. And finally, the concept economies speak for themselves with expected average unit sales of $2 million on an $850,000 investment."
 JB's Restaurants Inc. currently operates 136 JB's family-style restaurants, franchises four JB's family-style restaurants and operates four franchised Sbarro restaurants in 10 western states.
 -0- 11/27/91
 /CONTACT: David E. Pertl, VP & CFO of JB's Restaurants Inc., 801-974-4300/
 (JBBB) CO: JB's Restaurants Inc. ST: Utah IN: FOD SU:


DM-SE -- LA005 -- 7635 11/27/91 09:02 EST
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Publication:PR Newswire
Date:Nov 27, 1991
Words:514
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