The Austin-based deli operator has 21 restaurants, nine of which are company-owned, throughout the city. Schlotzsky's, founded in 1995, has started concentrating on its home market in the past two years. Until then, its Austin holdings had consisted of a Lamar Boulevard national training center and flagship eatery and four other locations. In April 1999, the restaurateur had bought the rights to build out the rest of the market from a former franchisee.

"We plan to add several more locations in Austin, some of which may be financed through build-to-suit leases," says John C. Wooley, chairman and CEO. "Redevelopment of the Austin market is giving us an opportunity to demonstrate the real potential of our concept."

In a year-end tally, the Schlotzsky's Sunset Valley restaurant has set a sales record for a 3,200-sf location. The record falls in line with increased sales in the home market, peaking at more than $21.9 million in 2000. Thus far this year, Austin company-owned same store sales are up 12.6% over the same period in 2000. "The Austin market," he says, "has rapidly become the operations leader and model for redeveloping other markets."