USA Cafes inks UK franchise deal

Nation's Restaurant News, August 22, 1988 by Bill Carlino

USA Cafes inks UK franchise deal

DALLAS -- USA Cafes L.P., licensor of the 609-unit Bonanza restaurant chain, has signed an agreement with Mansfield Brewer Public Limited Co. to open its first Bonanza franchise in London by spring of 1989.

Under the terms of the licensing agreement, USA Cafes L.P., will receive $250,000 in exchange for the right to construct and operate four Bonanza restaurants and the option to purchase area developer rights for England.

Although USA Cafes has Bonanza franchises in Canada, Australia, and Puerto Rico, the London store marks the company's first venture into the European market.

"The Bonanza concept should go over well in the U.K.," said Derek Mapp, managing director for Mansfield Inns Limited, the subsidiary for Mansfield Brewery in charge of restaurant development. "We will be in direct competition with Pizza Hut and McDonald's, but we feel the uniqueness of the Freshtastiks food bar will help tap the family dinner sector here."

The proposed 5,000-square-foot unit will be approximately two-thirds the size of a standard Bonanza, and a major London shopping mall has been chosen as its location. Mapp estimates that the franchise will cost an estimated $800,000 to open.

Mansfield brewery has two years from the scheduled 1989 opening to purchase area developer rights, with the stipulation to open a minimum of 20 additional units. Area developer rights will cost Mansfield anywhere from $750,000 to $1.75 million, depending on how soon the option is exercised.

The Mansfield Brewery Group is one of England's major brewers and markets Mansfield Bitter and Marksman English Lager beers. The company, which also operates 340 pubs, topped $120 million in revenues for 1987.