Jerry's Famous Deli, Inc

Restaurants | Financial Main Page | IGHRM Main Page
Disclaimer:

International Guild of Hospitality & Restaurant Managers

Business Summary
Nasdaq: DELI

Jerry's Famous Deli, Inc. is an operator of New York deli-style restaurants and a gourmet market. The Company operates 10 restaurants, including seven in Southern California operating under the name Jerry's Famous Deli, one in Southern California operating under the name Solley's, and two in Southern Florida operating under the name Wolfie Cohen's Rascal House. The Company also operates The Epicure Market, a specialty gourmet market located in Miami Beach, Florida. All of the restaurants feature an extensive menu emphasizing traditional deli type fare such as pastrami, corned beef, roast beef and turkey sandwiches, knishes, blintzes, chopped liver, lox and bagels, chicken soup, knockwurst and hot dogs, as well as an extensive assortment of pastas, salads, omelets, fresh baked breads and desserts, burgers, chicken and steaks. Also offered at most restaurants is a complete line of pizzas, ranging from traditional to specialty items, such as lox pizza, chicken pizza and deli pizza.

Expanded Business Summary

Financial Summary

DELI operates New York deli-style restaurants under the names ``Jerry's Famous Deli'' in Southern California, ``Solley's'' in Southern California and ``Rascal House'' in Florida. For the fiscal year ended 12/31/00, revenues decreased 2% to $69.6 million. Net income increased 57% to $1.4 million. Revenues reflect the sale of the Pasadena restaurant. Earnings benefitted from increased management monitoring of purchasing costs.

Recent Earnings Announcement
For the 3 months ended 03/31/2001, revenues were 18,868; after tax earnings were 674. (Preliminary; reported in thousands of dollars.)

Expanded Business Summary

Jerry's Famous Deli, Inc., established in 1978, is an operator of New York deli-style restaurants and a gourmet market. The Company currently operates 10 restaurants, including seven in Southern California operating under the name Jerry's Famous Deli, one in Southern California operating under the name Solley's and two in Southern Florida operating under the name Wolfie Cohen's Rascal House. The Company also operates The Epicure Market, a specialty gourmet market located in Miami Beach, Florida.

All of the restaurants feature an extensive menu emphasizing traditional deli type fare such as pastrami, corned beef, roast beef and turkey sandwiches, knishes, blintzes, chopped liver, lox and bagels, chicken soup, knockwurst and hot dogs, as well as an extensive assortment of pastas, salads, omelets, fresh baked breads and desserts, burgers, chicken and steaks. Also offered at most restaurants is a complete line of pizzas, ranging from traditional to specialty items, such as lox pizza, chicken pizza and deli pizza. Most items, other than smoked fish and meat, are prepared on site at each restaurant. Each restaurant also provides bar service. The Company depends heavily on repeat customers, and it emphasizes consistency, quality and cleanliness in an atmosphere acceptable to the whole family, and appealing to the very different demographics in the clientele at different times of the day.

The Company faces competition from a broad range of dining establishments including The Cheesecake Factory and the Daily Grill.

Jerry's Famous Deli Restaurants

Each of the Company's seven Jerry's Famous Deli restaurants in Southern California features a New York Broadway theme, with an array of lighting, posters and decor giving a theatrical setting. Each Jerry's restaurant has a large deli style take-out counter displaying a wide range of deli meats, salads and other prepared foods, along with a bakery display. Most of the Southern California restaurants, including Solley's, provide attractive patio dining, where smoking is permitted, and strategically placed televisions, generally showing sports events, which add to the casual atmosphere. Jerry's Famous Deli restaurants offer a menu of over 600 items.

In September 1999, the Company entered into a Quick Food License Agreement with Universal Studios CityWalk Hollywood (Universal) to provide consulting and technical services to Universal in connection with the planning, development, construction, furnishing and equipping of a Jerry's Famous Deli-type restaurant, located in Universal City, California. The restaurant opened March 21, 2000.

Solley's Restaurant

The Company purchased two existing restaurants and an adjoining bakery in Sherman Oaks, California, and Woodland Hills, California, in July 1996. The Sherman Oaks restaurant has continued to operate under the name Solley's, and the Woodland Hills restaurant was closed for renovation and reopened in December 1996 as a Jerry's Famous Deli. The Solley's restaurant retains the smaller, family atmosphere its patrons enjoyed for years before the Company acquired it.

Wolfie Cohen's Rascal House

The Rascal House features a traditional deli restaurant atmosphere that has been popular with its patrons for over 40 years. When the Company acquired the Rascal House in Miami Beach in September 1996, it substantially retained and expanded upon the existing menu and operating format of the restaurant, but the hours of operation of the restaurant were expanded, and the restaurant began delivery service, taking call-in orders for take out, and taking charge cards, all of which were not previously done at Rascal House. This led to a substantial increase in sales. The Rascal House restaurant consists of over 12,000 square feet of dining and kitchen space and 375 seats. The new Rascal House restaurant in Boca Raton, which opened in July 1998, features the traditional atmosphere and menu of the original Miami Beach Rascal House. In January 1999, the Company entered into a license agreement with CA One Services, Inc., a national food operator, to license the Wolfie Cohen's Rascal House concept for one shopping mall food court in Naples, Florida. The facility opened in March 1999.

Epicure Market

Epicure is an over 50 year old specialty gourmet market which serves fresh hot-cooked food and soups, juices, salads and numerous bakery products all prepared on the premises. Epicure also has traditional delicatessen fare, along with fresh produce and specialty wines and cheeses.

Financial Main Page | IGHRM Main Page

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.