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One of the largest Arby's franchises in the country plans to build at least 26 more restaurants in the St. Louis area - matching the 26 restaurants the fast-food roast beef chain has here now.
United States Beef Corp. of Tulsa. Okla., bought the local franchise last month for an estimated $25 million to. $30 million. U.S. Beef intends to not only expand, but spend several million dollars to upgrade existing locations, said Jeff Davis, president of the company. U.S. Beef already is building two of the 26 new restaurants - one in Kirkwood, the other in Washington, Mo.
U.S. Beef'. which has 163 Arby's in Arkansas, Kansas. Missouri and Oklahoma. acquired the local franchise, Sage Systems Inc., on June 1 from Leon Felman. Felman moved here front Pittsburgh in, 1969 to launch the franchise and will remain as a consultant to the new owners.
Neither Davis nor Felman would disclose the purchase price. The $25 million to $30 million estimate would include the assumption of mortgage debt and lease obligations for the restaurants, which employ 650. U.S. Beef also is getting a construction company controlled by Felman as part of the purchase.
Lloyd Fitzmeier, president of Arby's Franchise Association in Atlanta, a group that represents the 3, 100 Arby's franchisees, said U.S. Beef's locations produce sales above the average $700,000...