Biz Buzz: Pizza chain Donatos looks at Richmond area

Biz Buzz: Pizza chain Donatos looks at Richmond area

Dean Hoffmeyer / Times-Dispatch

John Houck (center), a Donatos Pizza executive, talked with Retail Merchants Association representatives. The chain is looking to expand into the Richmond area.

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Columbus, Ohio-based Donatos is counting on people's love for pizza as it looks to expand into the Richmond market.

The chain, which opened in 1963, wants to open as many as 20 franchised-owned restaurants in the area.

The company now has about 180 company-owned and franchised-owned restaurants in six states -- Ohio, Indiana, Kentucky, Alabama, North Carolina and South Carolina.

But none are in Virginia.

Donatos believes the Richmond area is a strong pizza market where it can make significant headway. The chain specializes in pizza -- thin crust with edge-to-edge toppings -- but also offers subs and salads.

To get the stores open will take about five years. The chain was in town late last week meeting with potential franchisees and introducing its products to the area by holding a reception at the offices of the Retail Merchants Association on Monument Avenue.

About 100 people attended the event, which featured several dozen pizzas cooked in a Donatos oven that had been brought along.

John M. Houck, vice president of development for Donatos, said the company uses this approach to introduce itself to a new market, as well as help identify potential franchisees.

He called it a "goodwill mission."

Houck and Jamie Davis, executive director of business development for Donatos, will begin working on identifying potential franchisees.

"We know someone is looking for us, and we're out there looking for them. We just need to find each other," Davis said.

Donatos wants to find one franchisee to take over the entire market but would split it between two. Building a typical Donatos costs $466,000 to $766,000.

Donatos is trying to grow. The chain was sold to McDonald's Corp. in 1999 with hopes of expanding the concept nationally. But McDonald's sold it back to the original owner in 2003.

The initial Richmond stores likely would go in large populated areas with office parks, large retail centers or hospitals nearby.

Houck said the chain does this to attract lunchtime customers. "Someone who likes what we offer would then think about us when they go home and it comes time for the family to consider where to go," he said.

The chain also will look at locations near downtown to capture some catering business.

Chesterfield putt-putt

Chesterfield Towne Center is now the home of glow-in-the-dark miniature golf.

Lunar Mini Golf's 36-hole course was built in a portion of the former Dillard's department store space in the southern part of the mall. Dillard's closed that store in 2005.

The golf course opened at the center Friday.

The course takes up about 15,000-square feet, said Ed Christoffersen, director of operations for Lunar Mini Golf.

Lunar Mini Golf has two 18-hole courses that are black-lit, Christoffersen said.

The area is lit with florescent course obstacles and decorations, and players use golf balls that light up.

New Wal-Mart

Wal-Mart is scheduled to open its newest supercenter in Chesterfield County on Wednesday.

The store is at Hancock Village off Hull Street Road, just east of the Woodlake residential community.

It's the chain's 12th area store.

McDonald's and LongHorn Steakhouse already have opened in the center.

Hancock Village also will include a Bed Bath & Beyond and a J.C. Penney, both of which are slated to open next year.

New job for former S&K head

Former S&K Famous Brands President and CEO Joseph A. Oliver III has landed new work in Richmond.

Oliver, who began running the Henrico County-based menswear retailer in 2007, is the new president of RetailData LLC. He left S&K in April.

RetailData offers market intelligence services to retailers and packaged-good vendors, including mystery shopping and price research.

Oliver will have direct oversight of sales, customer service and some operations.

S&K filed for bankruptcy in February. It began liquidating its assets in May after it was unable to find financing or a buyer to continue operating.

The company is expected to wrap its sales next Monday.

Starbucks opens

Starbucks is scheduled to open a full-service shop in downtown Richmond today.

The shop will be inside the Richmond Marriott on East Broad Street. It replaces a stand inside the hotel, which only served brewed coffees. The new location carries the entire Starbucks menu.

Starbucks will take up about 800 square feet just off the lobby. It will employ eight workers. The coffee shop seats about 30, with overflow seating available in the lobby.

This will be the second full-service Starbucks in the downtown area. The other is at the Omni Richmond Hotel. The chain has two locations at Virginia Commonwealth University.



Contact Louis Llovio at (804) 649-6348 or .

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