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MAGIC RESTAURANTS TO ACQUIRE 15-UNIT AMERICAN CAFE; W.R. GRACE SUBSIDIARY HAS $20 MILLION SALES

 YONKERS, N.Y., Dec. 7 /PRNewswire/ -- Magic Restaurants, Inc. (NASDAQ: MGIK, MGIKW), which owns and operates multi-concept table service restaurants, today announced it has signed a contract to purchase the American Cafe restaurant chain from Monolith Enterprises, Incorporated, a subsidiary of W.R. Grace & Co. (NYSE: GRA). The transaction involves 15 American Cafe restaurants in the Washington, D.C.-Baltimore metropolitan area with annual gross sales exceeding $20 million. Upon completion of this transaction, Magic will own or operate 28 restaurants with annual sales approaching $45 million.
 Magic expects to close the transaction on or about Feb. 15, 1994. Terms include cash and notes approximating $3.5 million.
 Gary Rogers, president of Magic, stated, "Having successfully acquired and integrated six Carmella's Cafes(TM) into Magic last year. We are now ready to acquire these 15 American Cafe locations to add to our 12 existing locations. One more opens tomorrow Dec. 7. We also plan to open two new restaurants in the first six months of 1994. We expect these 30 restaurants to be generating approximately $1 million in revenues weekly by June 1994, putting us at a $45 million annual run rate. We will use our existing management control systems to aggressively cut the American Cafes' duplicative overhead, just as we did with Carmella's to achieve substantial savings."
 Rogers continued, "We plan to establish a franchise program using the American Cafe concept of health-conscious American fare with a $9 to $10 average ticket."
 Magic Restaurants, based in Yonkers, owns and operates four Red Robin Burger and Spirits Emporiums(TM) in the greater metropolitan New York area, and manages a fifth owned by an affiliate. In addition, the company owns and operates six Carmella's Cafes in New York State and owns one Rockwells American Restaurant(TM) in Westchester County, N.Y.
 -0- 12/7/93
 /CONTACT: Gary Rogers of Magic Restaurants, 914-969-0600/
 (MGIK GRA)


CO: Magic Restaurants, Inc. ST: New York IN: LEI SU: TNM

TW-MP -- NY077 -- 1383 12/07/93 15:17 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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