LEAWOOD Kan. Houlihan’s has signed two market development agreements that are expected to add 34 franchised stores in Arizona, California and Florida to the 92-unit chain.
The casual-dining chain inked a 22-unit pact with SunPacific Partners for California and Arizona and a 12-unit agreement with Northeast Casual Food for Florida. The agreements fit Houlihan’s recently announced strategy of limiting new franchisees to experienced area developers while striving to develop 10 to 20 company-owned locations annually.
The agreements require the franchisees to follow the new “Houlihan’s of the 21st Century” design, which debuted last year in Algonquin, Ill. The new format features a contemporary look, outdoor patios and a large centerpiece bar. The buildings cost about $2.2 million to build and measure about 6,500 square feet, said chief executive Robert Hartnett.
Helping to boost the chain’s expansion is a cash infusion of $68 million last May from two private-equity firms. Sales in 2006 totaled $157 million.
Houlihan’s was a pioneer of the chain casual-dining segment, with the first unit opened in 1972 in Kansas City, Mo. Systemwide sales for 2006 totaled $157 million.
Current parent Houlihan’s Restaurants Inc. also owns Bristol Seafood Grill and Bar, Devon’s Seafood Grill and Bar and J. Gilbert’s Wood-Fired Steaks.