Austin, Texas--To combat disappointing financial results and continued store closures, Schlotzsky's Inc. has launched a host of new gourmet and health-oriented menu offerings and a revamped prototype, dubbed "Concept 2005," aimed at a reposition into the fast-casual arena. Looking to compete with such fast-casual sandwich chains as Panera Bread Co. and Quiznos, Schlotzsky's said its new food lineup would include more lower-calorie and reduced-fat offerings, an expanded children's menu and a sophisticated breakfast program. In addition, the chain said it would emphasize catering and delivery and revamp its design and give it a more contemporary and upscale atmosphere in an attempt to win over unsatisfied quick-service burger customers. -Nation's Restaurant News