Operator of Asian restaurants targets Reno-Sparks locations
An Asian-themed fast casual restaurant chain is looking to Reno as a major target for expansion.
Teriyaki Madness, a Las Vegas company, hopes to launch two or three franchised stores in the Reno area within the next two years.
The company founded in 2003 currently operates seven locations five franchised, two corporate-owned in the Las Vegas area.
Rod Arreola, co-founder and president of Teriyaki Madness, said Reno is a logical location for expansion because it can be easily supported from the company’s Las Vegas base.
He said, too, the company is attracted to the Reno area by average household income that tops $60,000 as well as the presence of a substantial population of college students.
Teriyaki Madness is talking with several potential franchisees in the area, but doesn’t have a development deal nailed down. Arreola said the company prefers franchise owners who will operate locations themselves.
The company estimates that franchise owners will need to invest somewhere between $200,000 and $390,000 to get a location open. Upfront franchise fees are $20,000 per location.
The company’s locations typically occupy about 1,800 square feet and provide seating for about 50, Arreola said. While 60 percent of the restaurants’ business historically has come from carry-out customers, he said Teriyaki Madness is seeing a shift toward more sit-down customers.
The average ticket price for lunch ranges from $10-$12 while dinner is around $13, the company says.
Teriyaki Madness says its same-store sales grew by 22.8 percent between 2008 and 2011.
Arreloa says the company plans to open nearly 70 locations Arizona, California, Colorado, Nevada, Texas and Utah by 2016.
Nevada OSHA officials are at the point where they are now conducting follow-up visits at locations where noncompliance was first observed. The maximum penalty that can be assessed is $134,940.