The Company Overview
The Company, incorporated in 2004 and headquartered in Las Vegas, Nevada, currently operates:
• 13 franchised Capriotti’s Sandwich Shops (“Capriotti’s”) in:
? Clark County, Nevada (Las Vegas);
? Dallas/Fort Worth; Texas, and
? four counties in Southern California
and
• Elements Kitchen and Martini Bar - an Alex Stratta fast casual restaurant.
The Company also has numerous locations in various stages of development.
Capriotti's Sandwich Shops
The Company currently has five additional Capriotti's locations in various stages of permitting and construction and leases signed to open a number of additional locations. Overall, KCI currently has exclusive development areas for at least 98 Capriotti's Sandwich Shops in: part of Las Vegas, all of Dallas/Fort Worth and its Southern California markets (Orange County, San Diego County and parts of Los Angeles County);
Papa John's pizza shops
The Company also recently secured the exclusive rights to develop: (i) at least 24 Papa John's pizza shops in trade areas stretching from Fresno to north of Sacramento, California and (ii) two Papa John's locations in north Las Vegas. The Company received quite favorable terms from Papa John's as an inducement to enter into this relationship, including:
• no upfront Franchise Fees;
• Papa John's contribution of approximately $60,000 of kitchen equipment;
• Papa John's contribution of approximately $3,000 of store-opening inventory;
• reduced royalties fees (starting at zero in the first year and not reaching the standard 5.0% of Sales until year six), and
• the ability to recruit and hire up to two of Papa John's current Regional Operations Managers.
The Company currently has five signed leases to open Papa John's locations and numerous additional leases under negotiation. The Company also is in late-stage discussions with Papa John's regarding the Company taking on a large territory on an exclusive basis. Terms of that deal are expected to be at least as favorable to the Company as its current Area Development Agreements.
Alex Stratta-related restaurants
Additionally, the Company recently reached an agreement with celebrity chef Alex Stratta to develop, open and operate various, proprietary restaurant concepts. The Company recently acquired and converted to an Alex Stratta Fine Casual restaurant an existing restaurant/bar in Las Vegas and also announced plans to open Alex Stratta Italian Steakhouse, a fine-dining establishment in a new development in Las Vegas, Nevada. The Company believes both of these concepts are replicable with the Company as owner or the franchisor. The Company also currently is developing an number of other fast casual concepts with Chef Stratta and is launching a catering business in Las Vegas.
Stratta recently joined KCI Investments, LLC, a wholly owned subsidiary of DIXI, as its Vice President of New Concept Development - responsible for launching various restaurant and food service concepts. Recognized as a James Beard award recipient and by Mobil 5 star, Forbes 5 star and Michelin 2 star awards of excellence for the past 20 years, Stratta also was the first "Iron Chef", having played the role of Iron Chef Italian on the television show Iron Chef America. He also appeared on Bravo’s Top Chef Masters. He also has received various national and locally-recognized awards of distinction for his commitment to consistency, hospitality and the highest levels of quality dining experiences. Alex's awards include:
? America's Ten Best New Chefs, Food & Wine Magazine, 1994[7]
? Best Chef Southwest, James Beard Foundation, 1998[1]
? Two Stars Michelin Guide for Alex
? AAA Five Diamond Award for Alex
? Five Stars Mobil Travel Guide for Alex
? Gaming Hall of Fame 2006 Inductee
