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RESTAURANT ENTERPRISES GROUP TO FRANCHISE CARROWS

 RESTAURANT ENTERPRISES GROUP TO FRANCHISE CARROWS
 IRVINE, Calif., Aug. 13 /PRNewswire/ -- Restaurant Enterprises


Group Inc. (REG) announced that it is now offering franchises for its Carrows Family Restaurant concept through its wholly owned franchising subsidiary, CFC Franchising Co. (CFC), which also franchises REG's other family restaurant chain, Coco's Bakery Restaurant.
 CFC President Kenneth L. Harris, stated: "In the process of selling Coco's franchises, it became obvious to us that some locations were better suited to a Carrows operation than Coco's because of the location's demographics or the size of the advertising umbrella in the market, consequently, we wanted to give the franchisee the option of selecting whichever of our family restaurant concepts was best suited for the location."
 Carrows is a 24-hour operation which features a traditional American menu and specializes in combination dinners, hamburgers, salads, unique breakfasts, and a variety of ethnic items. By contrast, Coco's is an 18-hour operation with a more upscale menu featuring dinnerhouse-type entrees, healthy and reduced calorie foods and an in-store bakery to go along with its traditional family restaurant fare of sandwiches, burgers, soups, and salads. Coco's is targeted to a slightly more upscale market, whose median income is approximately $50,000, while the median income of Carrows' target market is approximately $37,500. In addition, the average meal check at a Coco's is approximately $.75 more per person than at Carrows.
 Harris added: "We are concentrating our Carrows franchising efforts in California, Nevada, Arizona, and New Mexico, the four states where Carrows already has a major market presence and is already is a significant advertiser. The franchise fee for a Carrows is $35,000 and the monthly royalty is 3.5 percent of sales, the same as for Coco's. We are currently offering single unit franchises for new construction, single unit franchises for conversion of an existing facility, and a very limited number of turnkey sales of either existing Carrows units or Bob's Big Boys/Allie's restaurants which were recently acquired and have been designated for conversion to Carrows."
 A new 5,500-6,000-square-foot Carrows seats approximately 150-160 customers on leased land and will cost about $650,000; the FF&E package, including pre-opening and working capital requirements, will cost about $600,000 for a total investment in the $1.3 million range. A remodel of an existing facility will generally run $300,000- $700,000 depending upon the condition of the facility. Neither REG or CFC will provide nor guarantee any financing, but will refer qualified franchisees to financial institutions that have expressed a willingness to provide SBA financing.
 REG currently operates the following portfolio of family restaurants:
 Coco's Carrows jojos Bob's/ Total
 Allie's
 California company
 owned 103 79 0 84 266
 Non-California
 company owned 39 38 20 0 97
 Total company owned 142 117 20 84 363
 Domestic franchised 1 0 0 0 1
 International
 franchised 192 0 0 0 192
 Total franchised 193 0 0 0 193
 Total System 335 117 20 84 556
 REG is currently in the process of converting many of the Bob's and Allie's to Coco's and Carrows and expects to convert 21 more before the end of the year.
 Irvine-based REG also operates 169 Mexican restaurants under such popular names as El Torito, Casa Gallardo, Las Brisas and Tequila Willie's; 68 Reuben's and Charley Brown's steakhouses; 12 specialty restaurants; and three Edie's Diners.
 Further information on Carrows and Coco's franchising opportunities can be obtained by calling 714-757-7947 or by writing Jane Furgiuele at 18831 Von Karman Ave., Irvine, CA 92715. In addition, CFC will have a booth at the upcoming California Restaurant Show at San Francisco Moscone Center from Aug. 15 to 18.
 -0- 8/13/92
 /CONTACT: Jane Furgiuele of Restaurant Enterprises Group, 714-757-7947/ CO: Restaurant Enterprises Group Inc.; CFC Franchising Co. ST: California IN: LEI SU:


NS-AL -- LA023 -- 9686 08/13/92 13:40 EDT
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Date:Aug 13, 1992
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