DALLAS BUSINESS JOURNAL
October 20-26, 2000

Arkansas Sandwich Chain to Challenge Mega Stores

That's how the owner of a new sandwich franchise opening in Fort Worth described her plan to compete with the big sub chains.

In early November, Francey Nichols and her son, James Petty II, will open Loafin Joe's restaurant at Interstate 20 and Bryant Irvin Road in southwest Fort Worth.

The sandwich chain, based in Fayetteville, Ark., has five other locations in that state. It has 36 sandwiches on its menu and provides dine-in, take-out, delivery and catering services.

About five other locations may open soon in the Dallas-Fort Worth area, said Joe Weber, president of Loafin Joe's Inc., and another potential franchisee is looking at the Houston area.

Nichols heard about the restaurant from her daughter and son-in-law who own two Loafin Joes in Arkansas.

Nichols said the 2,000-square-foot Fort Worth restaurant that will seat 60 will be "more upscale, fun and elegant," than other sub shops.

It will have burgundy, green and tan décor, wooden tables and chairs, halogen lighting and han
The average sandwich will cost $4 to $5. The bread, baked from a family recipe of the franchise's president, is cooked fresh on-site and all subs are served hot.

Subway, which has a location at Bryant Irvin Road near the planned Loafin Joe's, has 214 stores in the Metroplex. It started offering gourmet breads and sauces in August to compete with upscale and mom-and-pop sub shops.

"What's a great sandwich without great bread?" said Subway spokesperson Michele Klotzer. "By introducing gourmet bread, it gives a little bit of change and taste."

Nichols is unfazed by competition from Subway. She invested $130,000 to open the restaurant, and she must pay 3% of gross sales to Loafin Joe's every month.

Nichols also owns the Balloons store in Fort Worth.