Noble Roman's profit up, revenue down

August 11, 2009

Noble Roman’s Inc. late yesterday reported a larger profit in the second quarter, primarily due to its continuing efforts to cut expenses by replacing company-owned restaurants with franchises.

The Indianapolis-based franchisor of Noble Roman’s Pizza and Tuscano’s Italian Style Subs said quarterly profit increased 5 percent, to $415,234, or 2 cents per share, compared with the same time frame last year.

Revenue, however, fell 21 percent, to $1.9 million. The company attributed the drop to a decrease in sales of franchise agreements.

In the most recent quarter, Noble Roman’s reduced overhead and operating costs by 34 percent, to $1 million, compared with the year-ago quarter.

Only two of Noble Roman’s company-owned restaurants, which are used for training and demonstration purposes, remain open.

The company said it continues to pursue growth by putting locations in “non-traditional venues” such as hospitals, military bases, universities, convenience stores and hotels. 

The company also hopes to increase sales by adding a “take-and-bake” pizza to its menu. The pizza so far is offered at 22 grocery stores, with two more expecting to have it available within the next few weeks, the company said.

A “grab-n-go” sub will be available as well to franchise owners of dual Noble Roman’s Pizza and Tuscano’s Subs franchises.




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