"However, we continue to focus on executing our key drivers of long-term success," Koziel said, among them "maintaining strong operating discipline," aggressive franchise recruitment and an increase of new company stores. Indeed, Koziel relayed that Cosi has secured commitments from 33 franchisee developers who would collectively deliver 378 units on top of 20 new stores already in business.

The additions would substantially boost Cosi's dining footprint nationally, with the firm operating 113 company-owned restaurants and 19 franchise locations as of the end of March. Cosi opened three company units and six franchise restaurants during the first quarter.

The opening quarter produced $32 million in total revenues, up from $29.6 million in the first quarter of 2006, while company-owned net revenue was up to $31.6 million from $29.4 million. Franchise fees and royalty revenues more than doubled year-over-year, from $187,000 to $432,000, a figure expected to grow substantially as the expansion goals are realized.