Royal Hospitality Acquires Shoneys

ATLANTA--()--Royal Hospitality Corp., a company affiliate of Atlanta-based Royal Capital Corp., announced today that it is acquiring Shoneys Restaurants from Shoneys LLC. Shoneys owns, operates and franchises 282 Shoneys Restaurants, 52 of which are franchisor-owned and 230 that are franchisee-owned. Terms of the acquisition were not disclosed.

Effective Jan. 1, 2007, Royal Hospitalitys subsidiary, Shoneys North America Corp., acquired all of the trademarks and rights as Franchisor associated with the Shoneys brand. The company anticipates completing the acquisition of the 52 franchisor-operated Shoneys Restaurants by the end of January 2007. Shoneys corporate headquarters will remain in Nashville.

David Davoudpour, founder and CEO of Royal Capital Corp. and Royal Hospitality Corp., assumed the position of chairman and CEO of Shoneys North America Corp. effective Jan. 1. Davoudpour, who is an entrepreneur, restaurateur and real-estate developer, has created and/or operated a number of food-service concepts during the 28 years he has been in the food-service industry. His expertise and passion for food service has infused him with an enthusiasm for creating new and exciting concepts and revitalizing older brands.

In making the purchase announcement, Davoudpour said, Im very excited about being part of the Shoneys tradition. As a long-time operator of food-service brands, I appreciate the passion for the Shoneys brand that weve witnessed among our franchisees and our loyal customers. We all believe that Shoneys can be an even greater brand and can and will return to its glory days as an exciting food destination for millions of satisfied customers across the United States. This isnt just a financial transaction for me. This is a mission.

Dan Dahlen, Shoneys chief marketing officer, added, This is a new day for Shoneys and we welcome Mr. Davoudpour and his team and are proud to be working with them. On behalf of all the dedicated, hard-working Shoneys employees and franchisees, we look forward to working together to continue to grow this great brand which is an American icon in food.

About Shoneys

In 1947, Alex Schoenbaum opened his first drive-in restaurant in Charleston, W.Va., and four years later acquired a Big Boy franchise. In 1959, Ray Danner acquired the Big Boy franchise rights for Middle Tennessee and opened his first unit in Madison, Tenn. Today, there are 282 Shoneys in 18 states. All Shoneys restaurants are open 364 days a year, excluding Christmas, and serve breakfast, lunch and dinner. Shoneys offers a variety of meals, including chicken, steaks, seafood, hamburgers and sandwiches, its popular All-You-Care-To-Eat Breakfast, Lunch, and Dinner Buffets and the All-You-Care-To-Eat Soup, Salad and Homestyle Vegetable Buffet. For more information, visit www.shoneys.com.

About Royal Hospitality

Based in Atlanta, Royal Hospitality Corp. is an operator and franchisor of food-service concepts. The company was founded in 2004 by David Davoudpour, who has a wide array of businesses which include real estate, development and food-service holdings. His food-service experience spans 28 years and includes the operation of multiple brands in the quick-service and casual dining categories throughout the United States. Davoudpour is currently the largest franchisee of Churchs Chicken with 112 restaurants located in Arizona, California and Texas.

Contacts

Media Contacts for Royal Hospitality Corp., Atlanta
Claudia DAvanzo, 404-898-0423
Mobile: 404-374-5893
davanzo@creativecomminc.com
or
Nancy McCardel, 770-363-3721
mccardel@creativecomminc.com

Contacts

Media Contacts for Royal Hospitality Corp., Atlanta
Claudia DAvanzo, 404-898-0423
Mobile: 404-374-5893
davanzo@creativecomminc.com
or
Nancy McCardel, 770-363-3721
mccardel@creativecomminc.com