Adding a third Peg's Glorified Ham and Eggs location in the south Reno market is the next step to franchising the brand, says Peg's co-owner and manager Fred Lee.
Peg's expects to open another restaurant in November at the corner of Double R Boulevard and South Meadows Parkway. Peg's opened its first restaurant 10 years ago at 420 S. Sierra St. and added a second location three years ago at 6300 Mae Anne Avenue in northwest Reno.
Lee says other Peg's locations will hit the region in the next few years as the family-owned business further defines its brand.
"We are pretty much in expansion mode of the family business," Lee says. "We think we have a great restaurant and business idea. Customers love it. Once we reach critical mass we will open it up for franchising, hopefully nationally."
Fred Lee says his dad, a longtime restaurant owner, retired in the Reno area and opened the first Peg's as a way to boost retirement income. Brisk breakfast business drove the need for expansion, and now the family seeks to add even more locations.
"There will be a Peg's four to follow in the not too distant future," he says. "We are reviewing other locations. There is a lot of demand for our glorified ham and eggs."
The owners chose the south Reno location because that market is underserved, says Lee, who will run the store with his wife, Cady. Lee says many of the regular customers at the Sierra Street location drive from south Reno for breakfast.
"There is a huge demand, and we think it is a great opportunity to serve the south Reno community," Lee says. "There are not a lot of breakfast establishments that have established themselves like Peg's has.
"We are definitely going to be busy there. That community is growing, and there are lots of businesses, as well as a hospital and hotels. It is a great opportunity to serve a lot of different people."
Chris Waizmann, senior vice president of CB Richard Ellis, helped the Lees broker a lease at the location. Waizmann says the location is far enough from the other Peg's restaurants that those establishments won't suffer a dip in customers.
"South Reno is lacking some good restaurants and in particular restaurants that specialize in breakfast and lunch," he says. "The South Meadows deal made a lot of sense. There is quite a bit of established daytime population base and a strong mix of residential as well, and combined with high traffic locations at this intersection and strong visibility, it made good sense for them to look down south."
Despite the woes suffered by many retail establishments in the Truckee Meadows, Waizmann says it's still a good time for some businesses to expand.
"For the right tenant and the right business model, absolutely," he says. "We were able to negotiate a very fair deal, and we got some great space in an out-parcel building. It was a win-win for the tenant and the landlord. The tenant gets a good economic deal in a great location, and the landlord got a great business model and a very viable tenant."