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KYLE, Texas -- Sac-N-Pac purchased eight franchise agreements from the Schlotzsky's deli chain, the first of which is scheduled to open at the corner of FM 967 and FM 1626 in Buda, Texas, on March 16. Other new locations in the area will follow quickly, according to the Hays Free Press. "Schlotzsky's had their issues," said Raymond Cavazos, director of food operations for Sac-N-Pac. "They regrouped, were purchased by Focus Brands and are up to about 240 stores. They're up-and-coming."
The c-store chain is still considering which location will open as its second Schlotzsky's, but it may be its existing store at FM 150 and Interstate 35, according to the report. Groundbreaking on a combined gas station and Schlotzsky's at the corner of I-35 and Kohler's Crossing is scheduled for next month.
Each restaurant will share space with the c-store and gas station, but have its own entrance and drive-thru with a connected pass-through in the building.
Changing markets are part of Sac-N-Pac's motivation to look beyond gasoline and general c-store products, Cavazos told the FreePress.
"Before, if you needed a loaf of bread or a gallon of milk, you would typically go to a convenience store," he said. "Now, you have so many options. You can buy milk or bread at CVS or Walgreens or a dollar store. The market share is shrinking, so… everybody's leaning toward restaurants as a draw. If you have a restaurant at your store, somebody who might not typically go in might walk over into the store to buy something. You consider that an incremental sale."
These franchise purchases also represent a positive step for Schlotzky's, which filed for bankruptcy in 2004 before being acquired by Atlanta-based Focus Brands in 2006. The company plans to open 50 to 60 stores in 2012, according to the report.
Meanwhile, Sac-N-Pac is also expanding, with one c-store and a Quiznos opened earlier this year near Uhland, Texas, and another possible location in downtown Kyle, Texas, under discussion.