RCI Expands Fast-Growing Bombshells with Sixth Unit; Franchising Approved in All 50 States
HOUSTON—March 10, 2016—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced plans for a sixth Bombshells Restaurant & Bar targeted to open in the company’s first quarter Fiscal 2017.
RCI also announced its BMB Franchising Services, Inc. subsidiary has received approval to sell franchises in Connecticut, enabling the concept to be offered now in all 50 states.
The new Bombshells announced today will be the fourth in the Houston market. It is expected to capitalize on a high traffic location and favorable demographics similar to the top Bombshells in the city.
The unit will be located in a 7,200 square foot free standing retail building at 14191 NW Freeway, Houston, TX, 77040 near the intersection of US 290 and Fairbanks North Houston Road.
Bombshells at 21005 I-45 North in Spring, TX, one of soon to be four locations in and around Houston
“The new Bombshells will benefit from further refinements made to the concept, including new menu items, while not departing from our great service and beautiful Bombshells Girls,” said Eric Langan, RCI President & CEO.
“Based on our analysis, the Bombshells on NW Freeway should be a top performing unit with a three year return on investment. In line with our newly adopted capital allocation policy, the risk adjusted after tax return should be significantly greater than buying back shares.”
Demographics are similar to the Bombshells on Gulf Freeway, the leading unit in greater Houston.
US 290 and Fairbanks North Houston Road is a high traffic area with major freeway visibility and easy access.
With four Bombshells in the Houston area, increased management and cost efficiencies are expected.
The concept has been further refined with an array of new menu items generating increased revenues.
Heightened visibility and financial success is attracting even more beautiful Bombshell Girls.
About Bombshells Restaurant & Bar
Bombshells is the first military-themed chain in the sports bar/casual dining segment. It comes alive through its hangar-like design, attractive Bombshell Girls wearing their military inspired uniforms, full bar, scratch kitchen, big flat screen TVs, live music, huge patio and energetic atmosphere. Attracting singles, couples, and families, Bombshells does a strong lunch, dinner and late night business.
The first Bombshells opened in 2013 in Dallas, becoming one of the most popular destinations in the area. Four more followed in Houston and Austin. For RCI’s most recent fiscal year, the five units reported total revenues of more than $19 million. Based on Bombshells’ success, RCI formed BMB Franchising Services, Inc. to develop a nationwide franchise. Please visit www.bombshellsfranchise.com.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen clubs and sports bars/restaurants. Please visit www.rcihospitality.com.
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company’s actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company’s businesses, risks and uncertainties related to the operational and financial results of its Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
This press release is for general information only and is not intended as an offer to sell or the solicitation of an offer to buy a franchise. Certain jurisdictions regulate the offer and sale of franchises. If the offer or sale is regulated by any of these jurisdictions, we will not offer or sell you a franchise unless and until we have complied with all applicable requirements.
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