In a move that will better
position both companies for expansion, two metro-Detroit
based fast food franchises have joined forces. Papa Romano's
Pizza, headquartered in Commerce Township, Mich., has merged
its operations with Mr. Pita restaurants, a 35-unit Sterling
Heights, Mich.-based chain. Casey Askar, chairman and chief
executive officer of Papa Romano's, has assumed the role of
chairman and CEO of Mr. Pita. Frank Lombardo, president and
founder of Mr. Pita, has been named president of Papa
Romano's while continuing to serve as president of Mr. Pita,
overseeing day-to-day operations of both chains.
A veteran of the pizza
industry, Askar quietly purchased the 50-plus store Papa
Romano's chain from former owner and founder Ronald Hancock
in February this year. Since acquiring the chain, he has
renovated and updated the stores, opened three new
locations, including a new prototype in Ann Arbor, Mich.,
and purchased seven formerly franchised Papa Romano's
locations that now operate as company-owned stores. He also
relocated the company's corporate headquarters from
Farmington Hills, Mich. to Commerce Township.
"The partnership with Mr.
Pita was a logical next step for us," said Askar. "We
believe it presents tremendous opportunity for both brands
going forward and postures us for national expansion," said
Askar. "We're excited and very optimistic about the
potential."
Added Lombardo, "Mr. Pita
had long been contemplating a partnership and has found in
Papa Romano's a partner that provides just the right fit. We
are two strong, locally-originated businesses, and we expect
to build on each other's strengths, as well as benefit from
cost savings and economies of scale that come from combining
our purchasing, advertising, corporate staffing and other
internal operations."
Lombardo also noted that
the partnership offered ample opportunity for co-branded
venues. "Mr. Pita is a highly co-brandable chain that works
well with other brands. We anticipate aggressive expansion
of the Mr. Pita and Papa Romano's brands, both individually
and in co-branded format," said Lombardo. "As a co-brand,
our concept offers a rare opportunity for franchisees to be
able to combine two complementary brands under one roof with
the benefit of shared overhead. That's very unusual in this
marketplace."