Sizzler Usa And Mexico's Grupo Payger Announce Franchise Agreement

CULVER CITY, CALIF. AND MEXICO CITY | Monday, August 06, 2007

Leading Hospitality Company Brings Great American Brand to Mexico

For the first time, Sizzler's steaks, seafood, chicken and Fresh 'n' Tasty salad bar will be served in Mexico following an agreement announced today between Sizzler USA and Grupo Payger. The first of four franchised locations is expected to open in Mexico City within a year.

"We wanted to expand the brand into Mexico for some time, but we had to find the right operator to make it successful," said Ken Cole, president and CEO of Sizzler USA. "Grupo Payger's expertise and success in restaurant operations made them the ideal partner." Grupo Payger is the franchisor and operator of the Mexican restaurant chain Las Gaoneras, which has locations throughout Mexico and in San Antonio, Texas. The Spanish version of Entrepreneur magazine this year named Las Gaoneras among the top 10 restaurants for growth. The company also operates several hotels and other restaurant concepts in Mexico. It manages hospitality and retail-related real estate holdings and distills and distributes Tequila under multiple brand names.

"As the Mexican economy grows, more families can afford to eat out," said Alberto Diaz, chief operating officer for Grupo Payger. "We see this as an opportunity to introduce a new American restaurant to the country.

Mexicans are tired of Dominos, and the Sizzler concept, with its emphasis on steak, will be very attractive to our guests." "Everything Sizzler has done in the past few years - from eliminating the buffet, to improving food quality and closing under-performing units - has been in preparation for expansion in the United States and Latin America," said Todd Peterson, vice president of Franchise Development at Sizzler. "Good food at a great value has universal appeal to families." Grupo Payger has committed to four Sizzler restaurants in the Mexico City and Acapulco areas. It also expects to expand the chain in the coming years to the Mexican states of Morelos, Queretaro, Puebla, Hidalgo and Estado de Mexico, with the goal of opening at least 10 restaurants.

Mexican Sizzler locations will vary from their counterparts in the United States. They will be full-service restaurants with a full bar. The salad bar also will include a selection of traditional Mexican menu items.

Grupo Payger is currently searching for sites and expects to break ground on its first Sizzler in early 2008.

For nearly 50 years, Sizzler has served great steaks, seafood and salad - always at a great value. Acquired by Pacific Equity Partners in September 2005, Sizzler owns or franchises more than 300 mid-scale casual dining restaurants worldwide. Having updated its restaurants, menus and marketing, Sizzler is expanding in the U.S., Asia and Latin America.


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