Schlotzsky's Upscale Approach Aims to Beef up Franchisee Results

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Austin, Texas--Schlotzsky's Deli Inc., which blamed the soft economy and decreased marketing for a second-quarter slip in revenue and profits, has taken a trendy turn toward upscale beef in a bid to boost franchisees' "gourmet" appeal and customer traffic. The sandwich chain operator, which is buying back its largest franchised territory and eyeing co-branding with a pizza chain, posted a 1 percent dip in revenue for the second quarter ended June 30. -Nation's Restaurant News

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