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SPAGHETTI WAREHOUSE DISCONTINUES TEST STORE IN SOUTH BEND, INDIANA

 DALLAS, Dec. 15 /PRNewswire/ -- Spaghetti Warehouse, Inc., which is traded on the New York Stock Exchange (NYSE: SWH), today exercised its option to discontinue operations of a test store in South Bend, Indiana after an 11-month trial of the low cost conversion of a similar Italian concept in a hotel and lounge environment to the Spaghetti Warehouse concept. The family-oriented 250-seat restaurant was unable to generate sufficient family traffic, and had not produced a profit since the test began. The company anticipates a one time pre-tax charge of between $150,000 to $250,000 as a result of the closing. The charge will be primarily non-cash, and will have no effect on the company's future growth plans.
 The decision to close was made at this time in accordance with the company's lease/option agreement which required such decision within the first 12 months of operations.
 The restaurant, formerly called "Spaghetti Works," was converted to a Spaghetti Warehouse restaurant in February, 1992. Located in The Works Hotel, the restaurant also had an adjoining lounge at the location. The company believes the lounge image in the community made it unlikely that sufficient family business would occur before the lease/option term expired.
 Spaghetti Warehouse, Inc., presently operates 26 company-owned stores in 14 states, one U.S. franchise, and five franchised restaurants in Canada under the name "The Old Spaghetti Factory."
 -0- 12/15/92
 /CONTACT: William B. Rea Jr., vice president-finance of Spaghetti


Warehouse, Inc., 214-226-6000/
 (SWH)


CO: Spaghetti Warehouse, Inc. ST: Texas IN: REA SU:

TM -- NY074 -- 7375 12/15/92 16:11 EST
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Publication:PR Newswire
Date:Dec 15, 1992
Words:263
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