BRENTWOOD, TN -- 07/21/08 --
Santa Fe Cattle Co. steakhouse restaurant
chain is continuing its aggressive expansion, snapping up premium real
estate at bargain prices and posting record breaking sales in its newly
opened restaurants long after the flurry of the opening weeks. Parent
company Santa Fe Holding Co. (PINKSHEETS: SFHD) will open its next store in
McComb, Miss., on August 18th. Construction is well underway on sites in
Ada, Okla., and Albertville, Ala. In July, the chain broke ground on
additional stores in Enterprise, Ala., and Bixby, Okla., and expects to
break ground in Lawton, Okla., by August 1. All six of the new restaurants
are expected to open before yearend 2008.
"The Santa Fe Cattle Co. steakhouses are a perfect fit for these mid-size
markets where customers eagerly anticipate the arrival of our simply
awesome food in a distinctive down-home casual atmosphere at a very
reasonable price," said Don Clifford, Santa Fe Vice President Real
Estate/Development. "Clearly we are filling a niche that is still wide
open, and we are doing it in a way that is efficient and effective. Our
carefully crafted blend of quality and value continues to prove its
strength in today's economic times."
The recent openings and groundbreakings are part of an overall plan to
expand by 10 locations in 2008 and 12 more in 2009. The company's
aggressive yet proven growth strategy is supported by the ongoing success
of its existing 24 locations and by the initial, often record-breaking
financial success of the four restaurant locations that opened earlier in
2008.
All the new stores will have the newly developed design featuring an
extremely efficient 5,947 sq. ft. layout that offers a large bar area,
seating for 187 guests and the generous use of local woods and stone
materials to create the warm, casual atmosphere. The thoughtfully designed
and highly productive kitchen/prep that spans the width of the building
also includes refrigerated rooms for hand cutting and aging their USDA
Choice beef so that after it arrives on site, it never is exposed to
temperatures higher than 38 degrees until it is taken to the grill.
"Our new restaurant design is a hit with our customers and our
shareholders," Clifford noted. "All of our new stores are generating 30%
or more revenue than our other store models. A few standouts stores, such
as our Ardmore, Oklahoma, store, have had numerous weeks of more than
$100,000 in sales. The Ardmore store is on pace to be a $4.2-4.5
million/year location compared to an average of $3.1-$3.3 million for other
new Santa Fe store locations. We are anticipating that we'll have similar
successes with some of these other locations."
He noted, "Many of our new sites are in areas that aren't greatly affected
by the downturn in the economy. Even in areas that are, we are seeing that
people are cutting back in other areas but they aren't willing to give up
the one luxury of eating out, especially since we are offering such great
food at a reasonable price."
The company's strong sales and revenue growth have established Santa Fe
Cattle Co. as one of the fastest growing concepts in the restaurant
industry, with 57% revenue growth in 2007. The company is projecting
revenues of $58 million in 2008, an increase of 70% over its revenue of $34
million in 2007.
Led by CEO Danny York, Santa Fe Holding Co., Inc. began the steakhouse
chain's dramatic turnaround in 2003, and expanded it to encompass seven
Southern states -- Kentucky, Oklahoma, Alabama, Mississippi, Tennessee,
Indiana and Georgia. Santa Fe Cattle Co.'s outstanding food quality, down
home atmosphere and overall great dining experience have clinched their
place as a leader in the $10-12 per dinner steakhouse market sector, which
is still underserved in terms of the number of restaurants and geographical
presence. Santa Fe Cattle Company is often the first and only steakhouse in
the markets where they operate.
About Santa Fe Holding Co.
Publicly traded Santa Fe Holding Company (PINKSHEETS: SFHD) of Brentwood,
Tenn., operates Santa Fe Cattle Co., one of the nation's fastest growing
casual dining "roadhouse" steak restaurant chains. Started in 1996, it
provides customers with a unique blend of perfectly aged USDA Choice
steaks, ribs, fajitas, Texas Hill Country-influenced homemade sauces and
dressings, and mouth-watering Chuck Wagon favorites developed exclusively
for the company. Each restaurant's distinctive signature décor creates a
nostalgic, down-home, family-oriented atmosphere reminiscent of the Old
West with simply awesome food, amazingly friendly service -- all at a
reasonable price. For more information, visit: www.santafecattle.com.
Safe Harbor
Safe Harbor statement under the Private Securities Litigation Reform Act of
1995:
Statements in this news release looking forward in time involve risks and
uncertainties, including the risks associated with the effect of changing
economic conditions, trends in the markets, variations in the company's
cash flow, competition, availability and cost of materials and labor and
suitable real estate locations; and other risk factors.
To receive email updates on Santa Fe Holding Co. financials, news and
events please send an email with your first and last name, phone number,
firm name and the subject: "SFHD email update request" to
Paul@coreconsultinggroup.com.
Contact:
Media Relations
Accentuate PR
Julie Shepherd
815 479 1833
Julie@accentuatePR.com
Investor Relations
Core Consulting Group
Paul DeRiso
925-465-6088
paul@coreconsultingroup.com
