Noble Roman's

Last updated
Noble Roman's, Inc.
Company type Public
OTCQB:  NROM
IndustryFood
Founded1972;52 years ago (1972) in Bloomington, Indiana
FoundersStephen Huse and Gary Knackstedt
Headquarters Indianapolis, Indiana
Number of locations
15
Area served
United States
Key people
Paul W. Mobley, Chairman of the Board and Chief Financial Officer [1]
Scott Mobley, President and CEO
Products Pizza, salads, subs
RevenueIncrease2.svg US$14.4 million (2022) [2]
Decrease2.svgUS$427,716 (2022)
Decrease2.svgUS$−1.05 million (2022)
Total assets Decrease2.svgUS$18.3 million (2022)
Total equity Increase2.svgUS$24.8 million (2022)
Number of employees
207 (2022)
Website www.nobleromans.com

Noble Roman's is an American pizza company based in Indianapolis, Indiana. [3]

Contents

History

Founding to 1990s

The last remaining original Noble Roman's, built in 1974, in Indianapolis, Indiana. Noble Roman's - May 2024 - Sarah Stierch 06.jpg
The last remaining original Noble Roman's, built in 1974, in Indianapolis, Indiana.

Noble Roman's was founded in Bloomington, Indiana, when Stephen Huse and Gary Knackstedt acquired a failed pizza shop near the campus of Indiana University in 1969. [4] The company incorporated in 1972, [5] with the first franchise following in 1973. [4]

In the 1980s and 1990s, Noble Roman's expanded heavily outside of Indiana, opening new locations in Ohio, and other states; and issuing an IPO in 1982. In 1996, Noble Roman's attempted to purchase Papa Gino's, which was in the process of acquiring D'Angelo's Grilled Sandwiches chain from PepsiCo's Pizza Hut division (Noble Roman's notable competitor). But in the next year, the deal fell through, and eventually it was delisted from NASDAQ after it fell to $1 per share. [6]

2000s expansion and contraction

A Noble Roman's at the Four Queens in Las Vegas, Nevada (2022). Noble Roman's Pizza in Las Vegas - March 2022 - Sarah Stierch.jpg
A Noble Roman's at the Four Queens in Las Vegas, Nevada (2022).

During the mid-2000s, the company launched an aggressive nationwide expansion campaign based on a franchising model. When the chain's economic problems began to come to light in 2008, they had over 1000 locations in operation and over 600 more under construction. [7] Owners of failing locations filed lawsuits claiming that Noble Roman's "sold a dual-branded startup concept that the company knew was operationally flawed and too complicated to operate profitably", [8] "did little to no market testing", [8] and that "the company provides no marketing support or operational backup". [8]

Noble Roman's became embroiled in multiple lawsuits with its franchisees. [9] [10] Franchisees have described the company as "distinguished...by its high franchisee failure rates, and its insistence on suing franchise owners once they fail." Other franchisees allege that the company "has used litigation as a revenue source," and as of 2009, was "involved with litigation with every one of their franchisees." [11]

Since 2010

Noble Roman's Craft Pizza & Pub in Greenwood, Indiana in 2022. Noble Roman's Craft Pizza & Pub, Greenwood - June 2022 - Sarah Stierch 01.jpg
Noble Roman's Craft Pizza & Pub in Greenwood, Indiana in 2022.

By the end of 2020, almost all of the 1000-plus locations that operated at the chain's 2008 peak had closed. The company currently operates 7 corporate-owned locations and 3 franchised locations. [12] The company's revenue vs. non-capital operational expenses showed a significant gross margin at the corporate-owned locations and a modest revenue stream from the franchises. However, when debt service and rent costs were factored in, the company exhibited an overall loss in 2020. [12]

After the collapse of its franchising arm, the company made several attempts to enter other markets, all of which existed more in press releases than reality. Announced plans of this nature included selling reheat-and-serve products in supermarkets, [13] serving fresh products for eating inside supermarket cafes, [14] and supplying pizzas for on-site preparation by employees of "nontraditional locations" such as "convenience stores, military bases, and bowling alleys". [14] While all of these business model pivots were promoted heavily in the trade press, none of them actually materialized beyond test markets. In the 3rd quarterly earnings report that came out in November 2016, the company had announced its decision to “discontinue expansion of its stand-alone take-n-bake concept, so that management’s efforts could be fully focused on the modernized Craft Pizza & Pub.”[ verify ]

In November 2014, Scott Mobley replaced his father, Paul Mobley, as president and CEO while the elder remained chairman. [15] [ third-party source needed ]

Restaurants

See also

Related Research Articles

<span class="mw-page-title-main">Franchising</span> Practice of the right to use a firms business model and brand for a prescribed period of time

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee. In return, the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement.

<span class="mw-page-title-main">Fast-food restaurant</span> Type of restaurant

A fast-food restaurant, also known as a quick-service restaurant (QSR) within the industry, is a specific type of restaurant that serves fast-food cuisine and has minimal table service. The food served in fast-food restaurants is typically part of a "meat-sweet diet", offered from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to order, and usually available for take away, though seating may be provided. Fast-food restaurants are typically part of a restaurant chain or franchise operation that provides standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951.

<span class="mw-page-title-main">Burger King</span> Global chain of hamburger fast food restaurants headquartered in Florida

Burger King Corporation is an American multinational chain of hamburger fast food restaurants. Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger King ran into financial difficulties, its two Miami-based franchisees David Edgerton (1927–2018) and James McLamore (1926–1996) purchased the company in 1959 and renamed it "Burger King". Over the next half-century, the company changed hands four times and its third set of owners, a partnership between TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, took it public in 2002. In late 2010, 3G Capital of Brazil acquired a majority stake in the company in a deal valued at US$3.26 billion. The new owners promptly initiated a restructuring of the company to reverse its fortunes. 3G, along with its partner Berkshire Hathaway, eventually merged the company with the Canadian-based doughnut chain Tim Hortons under the auspices of a new Canadian-based parent company named Restaurant Brands International.

<span class="mw-page-title-main">Applebee's</span> North American casual dining chain

Applebee's Restaurants LLC. is an American company that develops, franchises, and operates the Applebee's Neighborhood Grill + Bar restaurant chain. The Applebee's concept focuses on casual dining, with mainstream American dishes such as salads, chicken, pasta, burgers, and "riblets".

<span class="mw-page-title-main">Papa John's</span> Pizza restaurant chain

Papa John's International, Inc., d/b/a Papa Johns, is an American pizza restaurant chain. As of 2023, it is the fourth largest pizza delivery restaurant chain in the United States, with headquarters in the Louisville, Kentucky and Atlanta, Georgia metropolitan areas.

<span class="mw-page-title-main">Arby's</span> American sandwich chain based in Sandy Springs, Georgia

Arby's is an American fast food sandwich restaurant chain with more than 3,300 restaurants. The flagship property of Inspire Brands, it ranked third in systemwide sales in the United States in the quick-service and fast-casual restaurant industries in 2012, behind Subway and Panera Bread. In October 2017, Food & Wine called Arby's "America's second largest sandwich chain ".

<span class="mw-page-title-main">Boston Market</span> Chain of American fast casual restaurants

Boston Market Corporation, known as Boston Chicken until 1995, is an American fast casual restaurant chain headquartered in Newtown Township, Pennsylvania. Since 2020, it has been owned by Engage Brands, LLC, a company of Rohan Group. Frozen meals and side dishes are sold nationally under the Boston Market brand name.

<span class="mw-page-title-main">Steak 'n Shake</span> American restaurant chain

Steak 'n Shake Operations, Inc., doing business as Steak 'n Shake, is an American casual restaurant chain concentrated primarily in the Midwestern United States with locations also in the South, Mid-Atlantic, Western United States, Europe, and the Middle East. The company is headquartered in Indianapolis, Indiana, and is a wholly owned subsidiary of Biglari Holdings. As of 2018, 628 Steak 'n Shake restaurants were in operation; of those 414 were corporate-owned, and 214 franchised. The company has since attempted to convert to a fully franchised model.

<span class="mw-page-title-main">Graeter's</span> American regional ice cream chain

Graeter's is a regional ice cream chain based in Cincinnati, Ohio. Founded in 1870 by Louis C. Graeter, the company has since expanded to 56 retail locations selling ice cream, candy and baked goods in the Midwestern United States. It further distributes its ice cream to 6,000 stores throughout the country. As of 2017, the company had 1,050 employees and $60 million in revenue.

<span class="mw-page-title-main">Hot 'n Now</span> Fast food restaurant

Hot 'n Now is an American fast-food restaurant based in Holt, Michigan. Founded in 1984, the chain once grew to more than 150 locations throughout the United States at its peak. Subsequently, under the ownership of PepsiCo, the chain filed for bankruptcy in 2004, and was then sold to STEN Corporation. As of April 2024, the company operates 1 location in Michigan. The majority of the chain's locations focused entirely on drive-thru service, featuring a small-footprint building with a tall, slanted roof style. Some previous locations were more traditional fast-food locations, complete with seating, and others were combined with gas stations.

<span class="mw-page-title-main">Marsh Supermarkets</span> Defunct grocery chain based in central Indiana

Marsh Supermarkets was an American retail food chain headquartered in Indianapolis, Indiana, with a peak number of 86 stores in 2013 located throughout central Indiana and parts of western Ohio. Its eventual parent company was Sun Capital Partners, headquartered in Boca Raton, Florida.

<span class="mw-page-title-main">Food 4 Less</span> American no-frills grocery store chain owned by Kroger

Food 4 Less is the name of several grocery store chains, the largest of which is currently owned by Kroger. It is a no-frills grocery store where the customers bag their own groceries at the checkout. Kroger operates Food 4 Less stores in the Chicago metropolitan area and in Southern California. Kroger operates their stores as Foods Co. in northern and central California, including Bakersfield and the Central Coast, because they do not have the rights to the Food 4 Less name in those areas. Other states, such as Nevada, formerly contained Kroger-owned Food 4 Less stores.

<span class="mw-page-title-main">GetGo</span> Convenience store chain based in Pennsylvania

GetGo, also known as GetGo Cafe & Market, is a convenience store chain owned and operated by Giant Eagle. Both are based in suburban Pittsburgh. The chain operates locations in Indiana, Maryland, Ohio, Pennsylvania, and West Virginia.

VPS Convenience Store Group was an American convenience store chain headquartered in Wilmington, North Carolina that could trace its roots to the founding of the first Village Pantry convenience store in 1966. VPS was sold in two parts in 2013 and 2015 to GPM Investments.

The majority of the locations of international fast-food restaurant chain Burger King are privately owned franchises. While the majority of franchisees are smaller operations, several have grown into major corporations in their own right. At the end of the company's fiscal year in 2015, Burger King reported it had more than 15,000 outlets in 84 countries; of these, approximately 50% are in the United States and 99.9% are privately owned and operated. The company locations employ more than 37,000 people who serve approximately 11.4 million customers daily.

<span class="mw-page-title-main">AmRest</span> European restaurant operator

AmRest is a European multinational casual dining, fast-food restaurant and coffee shop operator headquartered in the Spanish capital, Madrid . The company runs more than 2300 locations, mostly franchises of KFC, Pizza Hut and Starbucks, and also Burger King until 2022, but also operates its own brands of restaurants. Apart from Spain, AmRest operates in Bulgaria, China, Croatia, Czech Republic, France, Germany, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, and others.

<span class="mw-page-title-main">Edible Arrangements</span>

Edible Arrangements, LLC is a U.S.-based franchising business that specializes in fresh fruit arrangements, combining the concept of a fruit basket with designs inspired by flower arrangement. The company also sells a variety of specialty fruit gift items, such as gift boxes featuring chocolate dipped fruit, and fresh fruit products and other products like fresh fruit cups, fresh fruit smoothies, chocolate dipped fruit cones flower bouquets desert boards, chocolate dipped fruit platters.

Orange Leaf Frozen Yogurt is an Oklahoma City-based chain of self-serve frozen yogurt franchises founded in 2008. It has spread to over 300 locations in the United States and has also expanded internationally.

<span class="mw-page-title-main">Pizza Factory</span> Chain of pizza restaurants

Pizza Factory Inc. is a chain of pizza restaurants in the western United States, based in Oakhurst, California. The company began in 1979, when Danny Wheeler and his wife Carol opened Danny's Red Devil Pizza in Oakhurst. Ron Willey and his wife Joyce subsequently opened a second location in 1981, known as Pizza Factory.

Roman's Pizza is a South African-based pizza restaurant chain franchise founded in 1993. Originally named Little Caesar's when it was founded by Arthur Nicolakakis in Pretoria. The chain was rebranded in 2002 and renamed Roman's Pizza. The company is known for its two for one pizza promotions with a business model that seeks to minimize prices whilst maintaining quality.

References

  1. Noble Roman's Form 10-K (Report). U.S. Securities and Exchange Commission. December 31, 2016.
  2. "Noble Roman's 2022 Annual Report".
  3. Noble Roman's, Inc. - Company Profile Snapshot
  4. 1 2 Waldman, Joseph M. (June 1978). "Making It Big in the Fast-Food Industry". Business Horizons. 21 (3). Elsevier: 65–72. doi:10.1016/0007-6813(78)90093-9.
  5. "Noble Roman's Company Profile". Reuters. Retrieved 2018-08-28.
  6. Murphy, Tom (August 7, 2006). "Noble Roman's seeking a return to glory". Indianapolis Business Journal . Retrieved 2020-08-08.
  7. "Struggling Noble Roman's takes over franchisee's 6 units". Indianapolis Business Journal. March 24, 2008.
  8. 1 2 3 "Noble Roman's to fight franchisees' suit over dual-brand rollouts". Nation's Restaurant News. July 21, 2008.
  9. "Noble Roman's granted favorable judgment in long-running lawsuit". Pizza Marketplace. December 29, 2010.
  10. "Pizza Franchisor Gets Burnt". Lewitt Hackman law firm. 3 May 2018.
  11. "NOBLE ROMAN'S (NROM) Franchise Complaints". Unhappy Franchisee. August 24, 2014.
  12. 1 2 "Form 10-K Noble Romans Inc". Noble Roman's 2020 SEC Disclosures. March 22, 2021. Archived from the original on September 2, 2021. Retrieved September 2, 2021.
  13. Schouten, Cory (March 12, 2011). "Noble Roman's expands grocery offerings to boost bottom line". Indianapolis Business Journal .
  14. 1 2 Andrews, Greg (January 30, 2016). "Believers in Noble Roman's see groceries as super market". Indianapolis Business Journal .
  15. "Management Structure; Continues Current Strategy Unaltered". PR Newswire (Press release). November 20, 2014.