Sharon, PA – Quaker Steak & Lube, the award-winning
automotive-themed restaurant chain, has announced that it is eighty-five
percent complete in its $5 million private placement. The first
round of the placement closed on
May 17, 2004, with 17 of 20 units purchased, grossing for Quaker
Steak & Lube, $4,270,000.00.
Proceeds raised from the placement will continue to fuel the aggressive
systemwide growth initiative and be used to acquire a franchisee
restaurant in Valley View, Ohio to be used as a corporate, fully
operational training center.
According to Michael Stack, Chairman of the Board of Lube Holdings,
Inc., the remaining 300,000 shares of preferred stock will be sold
for $2.50 a share before the end of July. “We are looking
for accredited investors interested in a minimum investment of $250,000
(100,000 shares),” notes Stack. “We are very pleased
with the success of the placement thus far. Several of our new and
existing franchise groups have taken significant positions.”
The Quaker Steak & Lube chain currently has twelve operating restaurants
in five states (PA, OH, FL, TN, NC), with construction beginning in
Madison, Wisconsin this month. Quaker Steak & Lube is distinguished
by its high per-unit sales volume, over-the-top auto-themed décor
and the cult-like following inspired by its award-winning wings.
“We believe that our planned national franchised development
of the Quaker Steak & Lube brand offers accredited investors
a unique investment opportunity. Our systemwide sales in 2004 will
exceed $50 million,” says Stack.
Currently, Quaker Steak & Lube operates two sizes of casual
dining facilities: a 10,400 square foot unit with 350 seats plus
a large patio on three acres, and a 8,200 square foot unit with
260 seats and a large patio on two acres. Each restaurant has customized
interiors developed by the local franchise owners, with support
from a professional team of outside design experts. Most locations
have at least three distinctive bars with their own unique décor.
There are also two limited service location in Heinz Field and PNC
Park in Pittsburgh, homes of the NFL Steelers and MLB Pirates. The
company also includes one fast-food location in Boardman, OH.
“We plan to develop over sixty franchised and company owned
locations and create a restaurant system with annual sales exceeding
$260 million by the end of 2008,” adds Stack.
The Quaker Steak & Lube Story
In 1974, the original Quaker Steak & Lube opened in a converted
gas station in Sharon, PA. Originally founded as an innovative cook-your-own-steak
restaurant, the popularity of the Quaker Steak & Lube buffalo-style
chicken wings soon took center stage, and by the early 1980’s
Quaker Steak & Lube was known as the place for award-winning
wings and beer in a fun and outrageous automobile and motorcycle-themed
Today, "The Lube" serves over 30 million wings annually,
has 16 bottled sauces for retail sale, has won the title of "Best
Wings USA," and has over 100 local, national, and international
awards for their sauce recipes. Most recently, Quaker Steak &
Lube was named the Official Chicken Wing of Lowe’s Motorspeedway
in Charlotte, NC.
In the past few months, Quaker Steak & Lube has successfully
rolled-out a new tastes menu featuring great steaks, burgers, ribs,
salads and appetizers. Combined with their on-going, weeknight events
such as Bike Nite, Family Night, All-You-Can-Eat Wing Night and
Cruise-ins, as well as their weekday lunch buffets, Quaker Steak
& Lube is a great place to refuel and recharge.
Quaker Steak & Lube shares in co-promotional sponsorship programs
with Lowe’s Motorspeedway, the American Motorcyclist Association,
MAC Tools, and Corsa Performance. It is also heavily involved in
racing with sponsorships of both ARCA and IHRL cars.
Visitors to Quaker Steak & Lube restaurants are amazed by the
auto and racing memorabilia on display, including full-size race
cars and vintage motorcycles attached to the walls and ceilings.
The loyal customer following of the Quaker Steak & Lube concept
led the company to franchise in 1997.