Pizza chief building empire, one regional chain at a time

       BY BRENT SNAVELY • FREE PRESS STAFF WRITER • March 30, 2008


Casey Askar has his doubters, but his food empire is growing fast.

Askar, 38, is chairman and CEO of Papa Romano's Enterprises Inc. and is vying to build his own version of Yum! Brands Inc.

Based in Louisville, Ky., Yum! Brands owns A&W Restaurants Inc., KFC, Long John Silver's, Pizza Hut and Taco Bell and is one of the largest food franchising corporations in the United States.

Getting to that level, even on a regional basis, is a tall order, said Jerry McVety, a food consultant and president of McVety & Associates Inc. in Farmington Hills. "He might become a mini, regional Yum, but that combination is not going to take him national, that is for sure," McVety said.

Challenges include the heavy marketing and distribution investments needed to support a national network.

"It is just taking relatively unknown names and trying to move them into first, a regional operation, and second, a national operation -- which is going to be very difficult," McVety said.

But Askar is making progress. Since January 2007, he has purchased controlling interests in pizza chain Papa Romano's and sandwich chain Mr. Pita.

Earlier this month, Papa Romano's signed a binding letter of intent to acquire a controlling interest in Stanford LLC Ltd. Stanford is the licensing company for Stucchi's, a premium ice cream retailer and maker in Saline.

Askar grew up in Caro, in Michigan's Thumb, where he got his start in the food business as a teenager helping out with his father's pizza business. In the 1990s, Askar became a Jet's Pizza franchisee and eventually owned four Jet's pizza franchises.

"I've been in the food business for a very long time," Askar said.

He sold the Jet's restaurants by 2000 and then joined a group of investors who acquired 97 Speedway SuperAmerica gasoline-convenience stores that same year. Through that deal, Askar said he became part of an investment group that owned 27 stations that were changed to Marathon stations.

Both Speedway and Marathon are part of Marathon Petroleum Company LLC of Findlay, Ohio. Eventually, all of the Marathon stations were sold or leased to other owners.

But Askar said it's the pizza business that he loves. So in 2006 he became CEO of Papa Romano's, and by January 2007, he became majority owner and chairman.

In October, Papa Romano's acquired an equity stake in Pita Franchise Corp. of Shelby Township. Together, the two companies have system-wide sales of about $34 million.

And earlier this month, Papa Romano's signed the letter of intent with the owners of Stucchi's for an undisclosed amount. That deal is expected to close in April.

"What they have is Mr. Pita for lunch, pizza for dinner and the filler is the dessert item that would appeal to both lunch and dinner," McVety said.

Askar said the combination is appealing not just to consumers, but also potential franchisees. "Right now, we offer something that is not offered elsewhere," Askar said.

Jason Abbate, Stucchi's co-owner and production manager, said Stucchi's owners saw a chance to expand faster through the franchising support offered by Papa Romano's.

Askar said the Papa Romano's-Mr. Pita combination has already attracted national interest.

In February, his company signed area development deals with partners in Colorado, Texas and North Carolina that could eventually lead to 250 new restaurants.

An area developer is a person or group of people who agrees to open a number of restaurants in certain areas, by direct ownership or recruiting franchisees.

So what's next? "We are not done yet," Askar said. "I want a chicken brand."

 


     

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