Cheba Hut "Toasted" Subs Reports Double-Digit Growth in 2011

15th Store Location Slated for 2012 Opening

TEMPE, AZ--(Marketwire - Feb 27, 2012) - Cheba Hut "Toasted" Subs, the nation's only counter-culture themed restaurant franchise, continues to smoke the competition by having one of the strongest years in franchise history, recording a 17.83 percent increase in revenue from 2011 to 2010.

Cheba Hut also reported 12.07 percent same-store sales growth, as well as a 3.56 percent increase in average unit volume (AUV). The franchise has locations in Arizona, Colorado, New Mexico, Oregon and California. A February 2011 expansion into Iowa City, Iowa introduced Cheba Hut's signature subs to the Midwest for the first time. The opening generated national media attention on CNN, ESPN and in the Chicago Tribune.

As a result of the rapid growth, Cheba Hut has announced that it will be opening a second Oregon restaurant in 2012. Ugly Duck LLC, which has franchisee rights in Eugene, OR, will open their second shop in Corvallis, OR, home of Oregon State University. The opening is slated for April 6, 2012. Located at 2043 NW Monroe Street, the new restaurant will serve as a natural rival to those students getting their fix of the munchies on the University of Oregon campus. Ugly Duck owners Ryan Holder and Adam Tolbert also have secured rights to open a future location in Portland.

"At Cheba Hut, we have an old school way of doing business," said Scott Jennings, president and CEO of Cheba Hut. "For us, it's all about the interaction, not the transaction. I believe this is the reason we have been so successful. We have the most loyal (and hungry) customers in the country. We can't wait to bring our quality of product, excellent service and unique atmosphere to the Corvallis community."

For more information about Cheba Hut or to learn how to become a franchisee, please visit www.chebahut.com.

Media Contact:

Tyler Rathjen/Lauren King
David and Sam PR
602-621-4010

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