Papa Romano's Enterprises
Inc. of Commerce Township is expected to sign a binding
letter of intent today to acquire majority control of
Stanford LLC Ltd., the licensing company for Stucchi's.
Saline-based Stucchi's,
founded in 1986, is a manufacturer and wholesaler of premium
ice cream.
The company has nine licensed
restaurants, about two dozen co-licensed locations and is
sold in about 150 grocery and convenience stores.
"I have been looking for a
dessert brand for quite awhile," said Casey Askar, Papa
Romano's chairman and CEO.
Askar said his goal is to
build a multi-brand food and restaurant company similar to
Yum! Brands Inc., which owns KFC, Pizza Hut, Taco Bell and
Long John Silver's.
Papa Romano's acquired an
equity stake in Mr. Pita in October. The two companies had
combined systemwide sales of about $34 million last year.
"The main objective was to
find a brand that is made off-site because of operational
issues," Askar said. "It just would not work to make ice
cream in your kitchen while you are making pizza."
The deal is expected to close
in April, Askar said. He declined to disclose the purchase
price or last year's sales.
Stucchi's two restaurants in
Ann Arbor are popular among University of Michigan students
and alumni and are known for providing generous portions.
Papa Romano's plans to offer
existing Mr. Pita and Papa Romano's franchisees the
opportunity to add Stucchi's to their restaurants and to
expand Stucchi's stand-alone restaurants.
Plans call for Stucchi's
three existing owners to retain ownership positions and
existing management roles, said Jason Abbate, co-owner and
production manager for Stucchi's.
"I think all the companies
complement each other, and it allows the franchisees the
opportunity to use all the different brands," Abbate said.
"For us, being in the ice cream business, it's going to help
generate extra sales in the winter."