Chanticleer Holdings Secures Location for New Hooters Restaurant in Townsville, Australia
Lease Also Signed for New Location in Surfers Paradise, Australia
CHARLOTTE, NC - (Marketwired - April 08, 2013) - Chanticleer Holdings, Inc. (NASDAQ: HOTR) ("Chanticleer Holdings" or the "Company"), a minority owner in the privately held parent company of the Hooters® brand, Hooters of America, and a franchisee of international Hooters restaurants, has secured Townsville on the northeastern coast of Queensland as the location for a new Australian restaurant, marking its second location in that country and its seventh international location. Additionally, the Company's joint venture partner has signed a lease for a site in Surfers Paradise, also in Queensland, Australia, near to a site it had originally planned for that area.
Construction on the Townsville site is expected to begin within the next several weeks. The new 5,140-square-foot restaurant is expected to open by the second quarter of 2013. Townsville sports a thriving economy, estimated to be growing at 16.5 percent per year, with strong population growth, increases in retail spending, and billions of dollars in mining, construction and infrastructure projects forecasted over the next several years. The area is also home to a thriving military base with 1,500 personnel, and three Royal Australian Regiments.
Chanticleer expects to use the equipment it had purchased for the original Surfers Paradise site, and therefore does not believe it will incur any additional equipment costs to open the Townsville restaurant. Chanticleer selected the new Surfers Paradise site after the owner of the original target location was unable to fulfill its obligations to Chanticleer, thereby hampering the Company's efforts to open in a timely manner. Construction in Surfers Paradise, which will be Chanticleer's eighth international location, is expected to commence after the completion of the new Townsville location. Hooters of America has approved both the Townsville and Surfers Paradise sites.
Mike Pruitt, CEO and President, commented, "Australia has been a fantastic area for Hooters, and we are looking forward to expanding our presence in the country. In addition to our new menu, terrific ambiance and iconic Hooters girls, our large-screen TVs are expected to make our new restaurant a destination stop for both locals and tourists. We believe the Townsville area's strong economy and growing population, coupled with its proximity to the military base, is a perfect location for Hooters.
"We are also excited to recommence our plans to open in Surfers Paradise. The brand fits well with the beach culture of Surfers Paradise and the local and visitor demographic should make Hooters of Surfers Paradise a restaurant and sports bar all will enjoy."
In 2011, Chanticleer Holdings formed a joint venture with the existing Hooters Franchisee in Australia, Morney Schlebusch, who assisted in securing these two locations. Chanticleer Holdings owns 49 percent of the joint venture's Campbelltown and upcoming Townsville and Surfers Paradise locations. Mr. Schlebusch, who handles the day-to-day restaurant operations, owns the remaining 51 percent of these three locations. With the opening of the two new locations, there will be a total of five Hooters restaurants in Australia, where the Company believes the market opportunity is for approximately 15 total restaurants.
About Chanticleer Holdings, Inc.
Chanticleer Holdings (HOTR) is focused on expanding the Hooters® casual dining restaurant brand in international emerging markets. Chanticleer currently owns in whole or part of the exclusive franchise rights to develop and operate Hooters restaurants in South Africa, Hungary and parts of Brazil, and has joint ventured with the current Hooters franchisee in Australia, while evaluating several additional international opportunities. The Company currently owns and operates in whole or part of six Hooters restaurants in its international franchise territories: Durban, Johannesburg, Cape Town and Emperor's Palace in South Africa; Campbelltown in Australia; and Budapest in Hungary.
In 2011, Chanticleer and a group of noteworthy private equity investors, which included H.I.G. Capital, KarpReilly, LLC and Kelly Hall, president of Texas Wings Inc., the largest Hooters franchisee in the United States, acquired Hooters of America, a privately held company. Today, Hooters of America is an operator and the franchisor of over 430 Hooters® restaurants in 28 countries. Chanticleer maintains a minority ownership stake in Hooters of America and its CEO, Mike Pruitt, is also a member of Hooters' Board of Directors.
For further information, please visit www.chanticleerholdings.com
For further information on Hooters of America, visit www.Hooters.com
Any statements that are not historical facts contained in this release are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing or required licenses, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the companies do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
Chanticleer Holdings, Inc.
Phone: 704.366.5122 x 1
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