RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the signing of the first Franchise Development Agreement for Bombshells Restaurant & Bar. Terms call for the opening of three locations over five years in San Antonio and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, also in Texas.
The agreement was signed with a newly formed entity established by six Houston-based private investors who have extensive experience in retail and hospitality, as well as multiple other industries. This experience includes franchise management and restaurant ownership.
“We always wanted our first franchise agreement to be with a multi-unit operator that has deep industry knowledge and experience,” says Eric Langan, chairman, president and CEO of RCI Hospitality. “We are extremely impressed with the skills, resources, and overall resume of our first franchise group. We believe in their ability to help build Bombshells into a sizeable chain.”
With the San Antonio agreement, Bombshells will be in the four largest cities in Texas. The brand currently has 10 company-owned locations: eight in the Houston area and one each in Dallas and Austin.
“We believe Bombshells is a significant entry into the market for modern sports bar restaurants. It appeals to singles, couples, and families, including millennials; does a strong lunch, dinner and late-night business; and with its large, distinctive design and outdoor patio, has demonstrated its ability to do well and operate safely through the pandemic,” says Nick Mehdi, the member of the investor group who will manage the San Antonio franchise.
Bombshells recently announced plans for 10 more company-owned locations, initially targeting additional units in Houston and Dallas and sites in South Florida.
“We have spent more than seven years carefully developing a successful and repeatable concept,” says David Simmons, RCI Management’s Director of Restaurant Operations. “Today’s agreement is a monumental step for our brand, company, and each person involved in the development of Bombshells. It is also the first step in our quest for more multi-unit operators to expand Bombshells into new markets.”