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."