SCOTTSDALE, AZ, March 29 /PRNewswire-FirstCall/ - Creative Eateries Corporation (OTC Bulletin Board: CEAT - News) today announced the signing of Letter of Intent to purchase Tuscan Kitchen Concept, a 4-location Italian restaurant concept featuring full service. The Tuscan Kitchen (identity will be disclosed upon finalization of Definitive Agreement) presents innovative, delicious Tuscan cuisine, made from the freshest available ingredients. The Tuscan Kitchen evolved from the Tuscan Rosticceria, the neighborhood take-out Italian deli. Food is a large part of a lifestyle where pleasure lies in hospitality and sharing and where kitchen and family are the focus. There is an abiding delight in all things fresh, and where people revere the home, hearth and kitchen. Where the family is dominant, the kitchen is central.
The Tuscan Kitchen continues the Tuscan tradition with signature soups that are always freshly made. Raviolis are light and delicate, sauced in The Tuscan Kitchen's very own Pomodoro. All food is prepared by The Tuscan Kitchen, from the Focaccia on the Panini to their house-made Tiramisu (Italian for "pick-me-up"), made everyday at each Tuscan Kitchen location. Just as in Tuscany, at each Tuscan Kitchen, meat is grilled over an open fire. They tend the steak or chicken to the definitive moment when it is at its peak, both in flavor and succulence.
The Tuscan Kitchen's mission is to provide delicious and healthy food, presented with warmth, imagination and generosity of spirit. The Tuscan Kitchen's full-service brand is known for simple, fresh, genuine food, available for dine-in, take-out or delivery.
Unlike many other restaurants and caterers, The Tuscan Kitchen is able to cater large orders on very short notice. The Tuscan Kitchen created a unique "System" that allows 1-hour notice for orders serving as many as 100 guests. The Tuscan Kitchen is profitable, and achieves $7.0 million in revenue and 75.0% GPM from four very different locations in suburban Los Angeles, California.
Acquisition of this brand is central to Creative Eateries portfolio and financials, as it will substantially contribute to franchise sales and store revenues from current operations. A sales price of 4 times audited EBITDA, or approximately $2,800,000 has been negotiated with 100% ownership in the company.
Each Tuscan Kitchen is expected to generate $1.5 million in annual revenue. 113 units are in the sales forecast for the planning period, franchised for $35,000 each with start-up costs of $400,000. The Tuscan Kitchen is designed for end-cap and/or in-line locations sized typically at 2,200-3,500 square feet with seating for 72-100 inside and an additional 32 seats in a patio setting.
About Creative Eateries
Creative Eateries Corporation is a full-service franchise development company that targets emerging and undervalued franchise concepts. The company is introducing a line of new restaurant brands focusing on the emerging "fast- casual/full-service" dining segment. Creative Eateries will provide the necessary elements to grow these brands by owning or partnering with existing restaurant companies, thereby owning equity directly in these brands, and by providing the concepts a total Franchise Program.
This formula is the result of several years of development to provide the tools and support needed to create and sustain a successful restaurant franchise with above average per store returns. Creative Eateries is traded publicly on the NASDAQ Electronic Bulletin Board under the trading symbol CEAT. For additional company and franchise information, please visit http://www.creativeeateries.com.
Legal Notice Regarding Forward-Looking Statements: Forward-looking statements in this news release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this news release that are not strictly historical statements, including without limitation, management's plans and objectives for future operations and management's assessment of market factors, and statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. These forward- looking statements are not guarantees of the company's future performance and are subject to a number of risks and uncertainties, such as our success in acquiring new concepts, funding acquisitions, and successfully adapting and franchising these concepts, and could cause the company's actual results in the future materially to differ from the forward-looking statements.
