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Russo’s signs 4-unit development deal in Texas

A South Texas development group will open four Russo’s New York Pizzeria locations in the Rio Grande Valley of Texas.

August 13, 2015

Russo’s New York Pizzeria has announced a multi-unit agreement that further advances the company’s strategic growth initiative by opening four new locations in Brownsville, Harlingen, Laredo and South Padre Island, Texas. The first location, in Brownsville, will open this fall.

"The newly formed deal with VKL Franchise, LLC represents a significant step in our franchise development strategy," said Chef Anthony Russo, founder and CEO of Russo’s Restaurants. "Russo’s has the ability to fully immerse itself into the fabric of many of America’s most attractive communities, and we are thrilled to introduce our unique and beloved brand to new markets throughout this attractive region."

The Houston-based brand, which has more than 73 restaurants open or under development, has completed the deal with VKL Franchise, LLC. The team of entrepreneurs currently runs more than 100 franchise businesses in south Texas, including several restaurants.

Gabriel Kauachi, Jorge Kauachi and Javier Lara are the principal operating partners behind the four new Russo’s New York Pizzeria locations.   

"Russo’s New York Pizzeria is an obvious fit for south Texas and the Rio Grande Valley," Kauachi said. "Brownsville, Harlingen, Laredo and South Padre Island are in for a delicious New York-style pizza surprise. The brand is in a prime position for growth, and we’re proud to be the group carrying on its rich history and family tradition.”

Russo’s has garnered a loyal following for its authentic Italian dishes made from fresh ingredients and its New York-style pizza, said Jim Carr, Russo's director of franchise development.

“We are continuing to advance our strategic growth plan in 2015 with plans to add 20 to 30 restaurants in the next three years,” he said.  “The new phase of franchising will more than double our number of international locations/ In addition to the Middle East markets, we are in early discussions with developers in France, Canada, Mexico, the Philippines and China.”

Russo’s Coal-Fired Italian Kitchen

Highlighting the performance of Russo’s New York Pizzeria and its upscale sister brand Russo’s Coal-Fired Italian Kitchen, is the nearly 24-percent average net profit, which includes average food costs of less than 21 percent, a figure well below the national average for the fast casual pizza/Italian sector, according to the company. The brands’ average unit volume also surpasses $1 million. The most recent Russo’s opening saw weekly sales between $35,000 to $60,000. Russo’s branded restaurants are profitable during their first year of operations, Carr said.

Based in Houston, Russo’s Restaurants has corporate and franchised locations across Arkansas, Florida, Hawaii, Oklahoma, Tennessee and Texas. Russo’s has entered international markets as well, with locations in Dubai, Abu Dhabi and Sharjah, in the United Arab Emirates.