VICORP RESTAURANTS INC

VICORP RESTAURANTS INC

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Company Overview
VICORP Restaurants Inc., headquartered in Denver, Colorado, USA, is engaged in the operation of full-service, family-oriented and moderately priced restaurants under names Village Inn and Bakers Square. VICORP Restaurants started in 1958 when the first Village Inn Pancake House opened.
Village Inn has a total of more than 250 locations and are concentrated in the Rocky Mountain region, the Midwest, Arizona, Florida, and Texas. Village Inn is known for its breakfast menus including buttermilk pancakes, skillets, crepes, omelets, and eggs. In additional to its robust breakfast offerings, Village Inn also features a variety of salads, sandwiches, burgers, melts and dinner items.
Bakers Square serves The Best Pie in America – pies that were awarded top honors at the National Pie Championships over the last several years, along with meals such as the honey mustard chicken, stir-fry salad or a club-cex ciabatta. Bakers Square has 146 locations in California, and the Upper Midwest. VICOM, the company’s pie production facilities, bakes more than 10 million pies a year for Village Inn, Bakers Square and J. Horner’s, a frozen pie line for outside sales. Its facilities are located in California, Illinois, and Minnesota.
Business Summary
VICORP Restaurants, Inc. operates family style restaurants under the names Bakers Square and Village Inn, and franchises restaurants under the Village Inn brand name. As of October 29, 2000, the Company operated 256 Company-owned restaurants in 14 states. Of the 256 Company-owned restaurants, 149 were Bakers Squares and 107 were Village Inns, with an additional 115 franchised Village Inn restaurants in 21 states. The Company-owned and franchised restaurants are concentrated in Arizona, California, Florida, the Rocky Mountain region and the upper Midwest. The Company also operates a pie-manufacturing division to support the restaurants, which operates under the name VICOM.
Description and history
VICORP Restaurants, Inc., incorporated in 1959, operates family style restaurants under the names Bakers Square and Village Inn, and franchises restaurants under the Village Inn brand name. As of October 29, 2000, the Company operated 256 Company-owned restaurants in 14 states. Of the 256 Company-owned restaurants, 149 were Bakers Squares and 107 were Village Inns, with an additional 115 franchised Village Inn restaurants in 21 states. The Company-owned and franchised restaurants are concentrated in Arizona, California, Florida, the Rocky Mountain region and the upper Midwest. The Company operates a pie-manufacturing division to support the restaurants, which operates under the name VICOM. VICOM has three production facilities located in Santa Fe Springs, California, Oak Forest, Illinois and Chaska, Minnesota.

The Village Inn concept is focused on breakfast food, offering homestyle entrees for breakfast, lunch and dinner. Bakers Square emphasizes lunch and dinner with signature fresh baked pies in more than 22 flavors. Each concept offers a relatively standard core menu supplemented with daily and monthly entree and pie specials, with an average guest check of $6 to $8.

Store management typically consists of a general manager and two assistant managers. The store managers are supported by regional managers, regional vice-presidents and the corporate office. Incentives are provided to encourage store and regional managers to maximize store sales and monitor controllable costs.

The Company utilizes advertising to promote the restaurant concepts and gain market share. Expenditures for marketing were 3.1% of Company-operated restaurant sales for fiscal 2000. The Company-operated restaurants utilize point-of-sale and back-of-house computer systems. These systems capture sales information and payroll data, and provide restaurant managers with analytical and reporting tools.

During fiscal 2000, the Company opened seven new restaurants and closed four restaurants, of which all were closed due to lease expiration. The Company intends to open six to nine Company-operated restaurants during fiscal 2001.

The initial term of a Village Inn Franchise Agreement is 25 years. An initial franchise fee of $35,000 is due upon the grant of a franchise and ongoing royalty fees are 4% of gross sales. The Company supports its franchisees with regular visits to the restaurants by Quality Assurance Consultants to help ensure that the Company’s high quality service and cleanliness standards are upheld. A franchise advisory board, consisting of seven franchisees elected by their peers every two years, meets with Company management four times per year. The meetings provide a forum for the exchange of ideas, which enables the Company and the franchisees to maximize growth, sales and profits.

During fiscal 2000, the Company established four new franchised Village Inn locations (three in Colorado and one in Alaska) and closed four franchised restaurants. The Company plans to pursue franchise development as a source of providing a continued profitable revenue stream, as well as to gain market share, thus promoting the advancement of the Village Inn brand name. The Company expects to develop from four to eight franchised units during fiscal 2001.

Started when the first Village Inn Pancake House opened

Business Line
Operation of full-service, family-oriented and moderately priced restaurants under names Village Inn and Bakers Square
Subsidiary

Advisor
ARTHUR ANDERSEN LLP
IPO date
8/1982
US SIC Code
5812
Company Address
400, West 48th Avenue

City province or state postal code
80216, DENVER, CO
Phone: +1 303 296 2121
Fax: +1 303 672 2677
Country address: UNITED STATES OF AMERICA
Website url: www.vicorpinc.com