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Restaurant Company Creating A Chain Reaction

Tribune photo by MICHAEL SPOONEYBARGER

Maria Jacome checks on customers Bud and Shirley Quehl of Weeki Wachee during their visit Tuesday to Johnny Rockets in the Citrus Park Town Center Mall. The restaurant chain hopes to open several new franchises around Tampa.

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By SHANNON BEHNKEN

The Tampa Tribune

Published: July 17, 2008

TAMPA - It may seem like an odd time for a restaurant chain to expand. Many Americans are tightening their spending belts and eating out less amid a turbulent economy.

Even so, Johnny Rockets, a themed 1950s-era restaurant known for burgers, dancing servers and hand-dipped milkshakes, is planning more locations, including more than a dozen in the Tampa Bay area.

The Lake Forest, Calif.-based chain has two restaurants in Tampa Bay -- one in the BayWalk shopping and entertainment complex in St. Petersburg and one in the Westfield Citrus Park mall.

The restaurants have been successful, but the new stores will be different. All of them will be franchises.

Company President and Chief Executive Officer Lee Sanders was in Tampa on Tuesday to recruit local entrepreneurs to open Johnny Rockets. Sanders sat down with The Tampa Tribune to discuss the company's plans.

Q: Why do you feel the timing is right for a restaurant expansion, given that many family-casual restaurants are struggling in today's economy?

A: This economy favors companies that are expanding, so we want to continue to grow. Some parts of this economy make that easier. The real estate market means more affordable land, and it's easier to get construction companies in this slow market. Contractors don't have the workload they did during the housing boom. Also, some people who find themselves unemployed figure they want to work for themselves now. Some of these people are interested in our company.

Q: Why are you planning so many locations in the Tampa area?

A: It makes sense because we have a base in Florida already. We have 10 restaurants in the Miami-Dade area and five in metro Orlando. The Tampa area is under-penetrated.

Q: The two Johnny Rockets restaurants in our area are company-owned. Why do you think franchises will work better than the traditional company-owned restaurants?

A: The franchise model lends itself to growth. We can open more stores at a time since the franchisees will open and run them. Also, the franchisees tend to run the restaurants well because it's their personal business. They put a lot into it. For the most part, the new stores we're planning nationwide will all be franchises.

Q: How quickly will this happen? How many people here are interested in opening a Johnny Rockets, and how many do you think will want to move forward now?

A: We had more than 40 people express an interest. I think that will be narrowed down to four or five for now.

Q: There's quite a selection of other burger restaurants in the Tampa Bay area. How will yours stand out?

A: Entertainment. We have an environment that's unique - a combination of jukeboxes and dancing. Our servers dance every hour or every other hour. It's fun for our customers. The guests tell us in our research that one of the things that makes us very different is our shakes. There aren't many places locally to get a hand-dipped milkshake.

Q: The company has been in business for 24 years. What lessons have been learned?

A: Don't tinker with success. Don't add tacos and pizza. Stick to what you know, and offer a simple menu. We've learned that we do best around other restaurants. We want to be where the people are.

Q: Looking ahead, where do you see the company in three to five years?

A: We want to open a dozen to 15 stores in the Tampa area. In Florida, we want to open 30 to 40 new stores. This state has a lot of potential. Our stores in Miami do very well, and that's a difficult area. If you can survive in Miami, you can survive in most places. Nationwide, we want to grow to 1,000 stores. (The company currently has 200 restaurants in 29 states.)

Reporter Shannon Behnken can be reached at (813) 259-7804 or sbehnken@tampatrib.com.

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