Restaurant Holdings, Inc.
PINK SHEETS : PSPR
FRANKFURT : PPU

March 29, 2006 18:57 ET

Restaurant Holdings, Inc. Acquires New York NY Fresh Deli

ORLANDO, FLORIDA--(CCNMatthews - March 29, 2006) -

New York NY Fresh Deli One of the Fastest Growing Franchises in the U.S.

Restaurant Holdings, Inc. (PINK SHEETS:PSPR)(FWB:PPU), formerly Passport Restaurants, Inc., today announced that it has acquired the emerging restaurant chain and one of America's fastest growing franchised quick casual restaurant concepts, New York NY Fresh Deli, as listed on Entrepreneur Magazine's May 2006 list of Top 50 New Franchises.

New York NY Fresh Deli, which is based in Phoenix, Arizona, features made fresh signature New York Style Hot Sub Sandwiches, Gourmet Deli Sandwiches, and a full-line of Fresh Cut Salads. The average transaction is approximately $9.00. There are currently 35 franchised New York NY Fresh Deli restaurants operating in seventeen states. In addition, there are signed franchise agreements for another 27 restaurants in fourteen states. Plans call for rapid development via franchising throughout the U.S.

"This acquisition is an ideal fit for our business plan, which calls for acquiring and growing high business potential restaurant concepts in the underdeveloped casual and quick casual dining segments of the U.S. restaurant industry," said Christopher R. Thomas, CEO of Restaurant Holdings, Inc.

"New York NY Fresh Deli fits our criteria as an opportunity with immediate value creation potential-it is an ideal concept for growth through franchising with proven customer appeal and unit economics," Mr. Thomas added. "Restaurant Holdings, Inc. with a management team bringing more than 150 years of combined experience and expertise in restaurant operations, finance, growth management, franchising and marketing will provide New York NY Fresh Deli with added resources to facilitate its growth."

About Restaurant Holdings, Inc.

Restaurant Holdings, Inc. is a multi-concept restaurant management and holding company which acquires, develops and grows emerging restaurant concepts in the casual and quick casual dining segments of the U.S restaurant industry. Restaurant Holdings, Inc. currently owns Playa Grill & Margarita Bar, a quick-casual restaurant that features high quality, high value, made-fresh Mexican grilled foods in a casual coastal atmosphere and Steve's Pizza, a quick- casual "hometown" pizza restaurant offering a superior quality, affordably priced pizza for dine-in, take-out and delivery.

This press release may contain statements, estimates or projections that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Generally, the words "believe", "expect", "intend", "estimate", "anticipate", "project", "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. In particular, this press release contains statements concerning prospects for future financings, results of operations, financial and business projections, and product development and marketing. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our present expectations or projections. These risks include, but are not limited to, acceptance of the Company's products in the marketplace; changes in the non-alcoholic beverages business environment, including actions of competitors and changes in consumer preferences; adverse weather conditions; our ability to finance expansion plans and general operating activities; regulatory and legal changes; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials; dependence upon third-party vendors; our ability to achieve earnings forecasts; integration of acquisitions; ability to sustain and manage growth; and changes in economic and political conditions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

Contact Information

  • Restaurant Holdings, Inc.
    John M. Creed
    Chairman
    (760) 754-2722
    or
    Restaurant Holdings, Inc.
    Christopher R. Thomas
    President & CEO
    (407) 240-9190