Cosi Inc. (Deerfield, Ill.), the convenience restaurant company, reported a 15th consecutive quarter of comparable restaurant sales growth, with a 6.4 percent increase over the second quarter of 2004.
The company opened three new locations during the quarter under its growth strategy, including the first two locations opened by franchisees. It said, “all new locations employ Cosi’s new, more efficient and guest-oriented restaurant design.”
The said it continues to expect to open a total of 11 new company-owned restaurants during 2005, including the one it opened during the second quarter. Cosi secured two additional area developer agreements since the end of the first quarter, and now has commitments from six area developers for a total of 42 franchised locations. Cosi continues to expect to have 10 franchised locations by the end of 2005, and, based on its on-going area developer negotiations, currently has a goal of securing commitments for 150 locations by year-end.
Also, under its strategic alliance strategy, Cosi operates a total of nine locations in Macy’s stores around the country and said it will continue to evaluate this pilot program. It is in discussions with Macy’s parent, Federated Department Stores (Cincinnati), regarding whether or not to continue and/or expand this strategic alliance.
“We are on track with our restaurant development efforts and our operating performance,” said president and ceo Kevin Armstrong. “In particular, we now have six full-menu Cosi restaurants open featuring the design we introduced last year, including at least one in each leg of our three-part growth strategy, and we are pleased both with the performance it allows our restaurant teams to produce and with our guests’ responses to it.”