Noble Roman's net up despite revenue decline

Noble Roman's net up despite revenue decline
Tags: Operations Management, Public Companies
August 10, 2009

Revenues at Noble Roman's Inc., the franchisor of Noble Roman's Pizza and Tuscano's Italian Style Subs, were $1.9 million for the company's second quarter ended June 30, off 21 percent compared with revenues of $2.4 million for the 2008 second quarter. Year-to-date revenues were $3.8 million, off 21 percent compared with revenues of $4.8 million for the first half of last year.

Net income for the second quarter was $415,234, up 5 percent compared with net income of $395,307 in the 2008 second quarter. Year-to-date net income was $831,995, up 16 percent compared with net income of $716,737 for the same period last year.

The increase in net income was primarily the result of implementing a previously announced strategy of intensifying the company's focus on non-traditional franchising and discontinuing the company operation of restaurants except for two locations used for training and demonstration purposes.

Noble Roman's introduced its new Noble Roman's Bistro service system last fall in an effort to further its expansion into non-traditional venues. The system uses mainly ready-to-use ingredients that require only final assembly and baking on site. The Bistro also is available with an optional breakfast expansion menu.

The company has developed a take-n-bake pizza module as an addition to its menu offering. The take-n-bake pizza is primarily designed as an add-on component for new and existing convenience store franchisees, and as a stand-alone offering for grocery store chains.

Noble Roman's also has recently developed a grab-n-go service system for a limited portion of the Tuscano's menu. The grab-n-go system is designed to add sales opportunities at existing non-traditional Noble Roman's Pizza and/or Tuscano's Subs locations, company officials said.