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Schlotzsky's

Schlotzsky's is an American restaurant franchise brand known for toasted sandwiches, pizzas, wraps, salads, and soups.

Last updated August 31, 2026

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Overview

Schlotzsky's is an American restaurant chain and franchise brand centered on toasted sandwiches, particularly its signature Original sandwich. Don and Dolores Dissman founded the business in 1971 in a small shop on South Congress Avenue in Austin, Texas. The first menu was deliberately narrow: one substantial sandwich made with assorted meats, cheeses, and black olives on a freshly baked and toasted bun. The concept drew inspiration from the muffuletta, but developed its own format and identity around a distinctive round bun and a large, filling sandwich. The company began franchising and reached approximately 100 franchised restaurants by 1981. That year, real-estate investors John Wooley, Jeff Wooley, and Gary Bradley purchased the business for less than $3 million. Bradley later separated from the Wooley brothers, retaining the real-estate operation while the Wooleys continued with the restaurant chain. Under the Wooleys, Schlotzsky's expanded beyond its original sandwich concept. The menu added specialty pizzas, toasted wraps, salads, soups, and other items, enabling the brand to compete across several segments of the fast-casual and quick-service restaurant market. Schlotzsky's became a public company on December 15, 1995, trading on Nasdaq under the symbol BUNZ. The system reached its reported high point in 2001, with 759 stores and more than $400 million in sales. The growth period was followed by a deterioration in same-store sales and financial performance. In 2003, the company reported an $11.7 million loss. On June 17, 2004, the board removed the Wooley brothers from day-to-day management and appointed Sam Coats as chief executive officer. The brothers subsequently resigned from the board in July 2004. On August 3, 2004, Schlotzsky's sought voluntary protection under Chapter 11 of the United States Bankruptcy Code in San Antonio. The filing reported approximately $71.3 million in liabilities and approximately $111.7 million in assets. Bobby Cox Companies acquired the company's assets through the bankruptcy process, ending Schlotzsky's period as a publicly traded business. Under the new ownership, the company focused on restoring franchise operations, simplifying the menu, recruiting franchisees, and improving the performance of its store network. Focus Brands acquired Schlotzsky's on November 21, 2006. Focus Brands was associated with Roark Capital Group and operated a portfolio that included brands such as Moe's Southwest Grill, Carvel, Cinnabon, and Auntie Anne's. In 2007, Kelly Roddy became president after joining from H-E-B Grocery Company. The subsequent development program emphasized growth, restaurant remodeling, menu improvements, and a more contemporary service model. The reimage program introduced the 'Lotz Better' design, characterized by strong colors, circular furniture and decor, updated restaurant interiors, playful language, and, in some locations, table service and co-location with Cinnabon. Schlotzsky's remains primarily a United States franchise system, with its strongest historical concentration in the South and Southwest and additional expansion in other regions, including the North and Southeast. Reference material describes the system as having more than 310 franchised and company-owned locations. Its brand positioning combines a distinctive sandwich heritage with a broader menu intended to support multiple dayparts and customer occasions. The current slogan identified in the reference material is 'It's a mouthful,' introduced in 2021. On February 21, 2024, Focus Brands was rebranded as GoTo Foods, making Schlotzsky's part of that renamed multi-brand restaurant platform.

History

Schlotzsky's began in 1971 when Don and Dolores Dissman opened a small restaurant on South Congress Avenue in Austin, Texas. The founders initially concentrated on a single product: a large sandwich called The Original. It combined assorted meats, cheeses, and black olives in a freshly made toasted bun. The sandwich was influenced by the muffuletta tradition, but Schlotzsky's developed a separate identity through its round bun, toasted preparation, and substantial filling. The business expanded through franchising and had about 100 franchised restaurants by 1981. In that year, real-estate investors John Wooley, Jeff Wooley, and Gary Bradley bought the company for less than $3 million. Bradley later split from the Wooleys, keeping the real-estate activities while the Wooleys retained the restaurant chain. The company broadened its menu under the Wooleys, adding specialty pizzas, toasted wraps, salads, soups, and related items. This transformed Schlotzsky's from a single-sandwich concept into a broader restaurant system. Schlotzsky's became publicly traded on Nasdaq on December 15, 1995, using the symbol BUNZ. Its expansion reached a reported peak in 2001, when the chain had 759 stores and more than $400 million in sales. The company then encountered weakening same-store sales. It reported an $11.7 million loss in 2003, and the board responded on June 17, 2004 by removing the Wooley brothers from daily management and appointing Sam Coats chief executive officer. The brothers resigned from the board the following month. On August 3, 2004, Schlotzsky's filed for voluntary Chapter 11 bankruptcy protection in the United States Bankruptcy Court in San Antonio, Texas. The filing listed approximately $71.3 million in liabilities and approximately $111.7 million in assets. Bobby Cox Companies acquired the company's assets out of bankruptcy. The acquisition ended the public-company phase and placed the brand under new ownership and management. During the post-bankruptcy period, Schlotzsky's concentrated on repairing its franchise system, streamlining its menu, and recruiting new franchisees. The company operated as Schlotzsky's, Ltd., licensed new locations in Texas and other states, and considered additional company-operated restaurants. Focus Brands acquired the chain on November 21, 2006. The new ownership connected Schlotzsky's with a larger portfolio of restaurant brands associated with Roark Capital Group. In 2007, Kelly Roddy became president after moving from H-E-B Grocery Company. The brand pursued store growth and a system-wide reimage. The program included remodeled restaurants, menu changes, table service in some locations, and the addition of Cinnabon offerings. The 'Lotz Better' design used vivid colors, circular furniture and decor, and playful slogans to give the restaurants a more contemporary appearance. Former slogans included 'All 'Round, Lotz Better,' 'Lotz Better,' 'Every Bite Lotz Better,' 'Funny name. Serious sandwich,' 'No substituteskys,' and 'Just one sandwich, it's that good.' Schlotzsky's continues to operate as a United States-focused franchise brand. Its locations have historically been concentrated in the South and Southwest, while the company has also pursued growth in the North and Southeast. Reference material describes a system of more than 310 franchised and company-owned restaurants. The brand's current slogan is identified as 'It's a mouthful,' introduced in 2021. On February 21, 2024, Focus Brands changed its corporate name to GoTo Foods, under which Schlotzsky's remains part of a multi-brand restaurant platform.

  • 2024

    GoTo Foods corporate rebrand

    [1]

    Focus Brands changes its name to GoTo Foods on February 21.

  • 2021

    Launch of 'It's a mouthful'

    [1]

    The brand introduces the slogan 'It's a mouthful.'

  • 2007

    Reimage and growth program

    [1]

    Kelly Roddy becomes president as the company begins a broader restaurant, menu, and franchise-development program.

  • 2006

    Focus Brands acquisition

    [1]

    Focus Brands acquires Schlotzsky's on November 21.

  • 2004

    Chapter 11 restructuring

    [1]

    Schlotzsky's files for voluntary Chapter 11 protection and later has its assets acquired by Bobby Cox Companies.

  • 2001

    Reported system peak

    [1]

    The chain reaches a reported high of 759 stores and more than $400 million in sales.

  • 1995

    Public-market listing

    [1]

    Schlotzsky's begins trading on Nasdaq under the symbol BUNZ.

  • 1981

    Ownership changes hands

    [1]

    John and Jeff Wooley and Gary Bradley acquire the company after the system reaches approximately 100 franchised restaurants.

  • 1971

    Schlotzsky's is founded in Austin

    [1]

    Don and Dolores Dissman open the first Schlotzsky's shop on South Congress Avenue in Austin, Texas.

Products and positioning

A franchised American sandwich and fast-casual restaurant brand built around generous toasted sandwiches, a distinctive round bun, and a broader menu of pizzas, wraps, salads, and soups.

  • Signature sandwich · 1971

    The Original

    The Original is the sandwich that established Schlotzsky's. It combines mixed meats, cheeses, and black olives in a freshly made, toasted bun. Inspired in part by the muffuletta, it became the central product around which the original Austin shop and the early franchise concept were built.

  • Sandwiches

    Toasted sandwiches

    Toasted sandwiches form the core of the contemporary Schlotzsky's menu. The category extends the brand's original sandwich proposition with multiple fillings and preparation variations, preserving the emphasis on warm bread and substantial portions while supporting a broader franchise restaurant offering.

  • Pizza

    Specialty pizzas

    Specialty pizzas were added as the company expanded beyond its initial single-sandwich menu. They give the restaurant a second major savory category and allow locations to serve customers seeking a shareable or individually portioned alternative to sandwiches.

  • Wraps

    Toasted wraps

    Toasted wraps are part of the broader menu introduced during the brand's expansion. They extend the warm, handheld meal format into a different bread and filling configuration and provide an alternative to the signature round-bun sandwich.

  • Sides and lighter meals

    Salads and soups

    Salads and soups broaden Schlotzsky's menu beyond toasted handheld products. Their inclusion supports customers seeking lighter meals, complements sandwiches and pizzas, and contributes to the brand's positioning as a more varied fast-casual restaurant concept.

Marketing campaigns

  • 2021It's a mouthful

    United States

    Schlotzsky's introduced 'It's a mouthful' as its current brand slogan, reinforcing the association between the brand name, generous sandwiches, and substantial eating occasions.

  • Lotz Better reimage

    United States

    Following Kelly Roddy's arrival, Schlotzsky's undertook a system-wide restaurant reimage using bright colors, circular furnishings and decor, updated menus, playful slogans, and in some locations table service and Cinnabon offerings.

    Outcome. The program was intended to modernize restaurants and support renewed franchise growth.

Brand decisions

  • 2024

    Transition to the GoTo Foods platformStrategy

    Background

    The parent multi-brand restaurant organization changed its corporate identity.

    Action taken

    Focus Brands rebranded as GoTo Foods on February 21, 2024.

    Aftermath

    Schlotzsky's continued as a brand within the renamed restaurant platform.

  • 2007

    Restaurant reimage and menu expansionStrategy

    Background

    The brand sought renewed growth after restructuring and a change in ownership.

    Action taken

    Under president Kelly Roddy, Schlotzsky's pursued restaurant remodeling, menu improvements, table service in some locations, Cinnabon additions, and a broader franchise-growth plan.

    Aftermath

    The 'Lotz Better' visual program became the principal expression of the modernization effort described in the reference material.

  • 2006

    Acquisition by Focus BrandsM&A

    Background

    After its bankruptcy-era restructuring and change to private ownership, Schlotzsky's entered a new phase of portfolio ownership.

    Action taken

    Focus Brands acquired Schlotzsky's on November 21, 2006.

    Aftermath

    Schlotzsky's became part of a multi-brand restaurant group associated with Roark Capital Group.

  • 2004

    Management replacement during financial distressStrategy

    Background

    After same-store sales weakened and the company reported an $11.7 million loss in 2003, the board reassessed operating leadership.

    Action taken

    On June 17, 2004, the board removed John and Jeff Wooley from day-to-day management and appointed Sam Coats chief executive officer.

    Aftermath

    The Wooley brothers later resigned from the board, and the company filed for Chapter 11 protection in August 2004.

    Reported annual loss. $11.7 million loss in 2003 (2003-2004)

  • 2004

    Chapter 11 restructuring and asset saleOther

    Background

    Schlotzsky's entered a period of financial distress after a decline in same-store sales and reported losses.

    Action taken

    The company filed voluntary Chapter 11 protection on August 3, and Bobby Cox Companies acquired its assets through the bankruptcy process.

    Aftermath

    The public company ceased trading. New ownership focused on franchise restructuring, menu streamlining, and rebuilding the store network.

    Bankruptcy filing balance sheet. $71.3 million liabilities; $111.7 million assets (August 3, 2004)

Recent events

  • 2024

    Focus Brands rebrands as GoTo Foods[1]

    M&A · Other

    On February 21, Focus Brands adopted the GoTo Foods name, with Schlotzsky's continuing as one of the platform's restaurant brands.

  • 2021

    Schlotzsky's introduces its current slogan[1]

    Campaign

    The brand launched the slogan 'It's a mouthful.'

  • 2007

    Schlotzsky's appoints Kelly Roddy as president[1]

    Leadership change

    Kelly Roddy joined the brand from H-E-B Grocery Company and led an expansion and restaurant-reimaging effort.

  • 2006

    Focus Brands acquires Schlotzsky's[1]

    M&A

    Focus Brands acquired Schlotzsky's on November 21, bringing the chain into a multi-brand restaurant portfolio associated with Roark Capital Group.

  • 2004

    Board changes Schlotzsky's management[1]

    Leadership change

    After a reported loss in 2003, the board removed the Wooley brothers from daily management and named Sam Coats chief executive officer.

  • 2004

    Schlotzsky's files for Chapter 11 protection[1]

    Bankruptcy

    The company filed for voluntary Chapter 11 protection in San Antonio, reporting approximately $71.3 million in liabilities and $111.7 million in assets.

  • 2004

    Bobby Cox Companies acquires Schlotzsky's assets[1]

    M&A · Bankruptcy

    Bobby Cox Companies purchased the restaurant company's assets through the bankruptcy process, taking the business private.

  • 2001

    Schlotzsky's reports peak store count and sales[1]

    Other

    The chain reached a reported peak of 759 stores and more than $400 million in sales before same-store sales began to level off.

  • 1995

    Schlotzsky's begins public trading on Nasdaq[1]

    Other

    The company became publicly traded on December 15 under the ticker symbol BUNZ.

  • 1981

    Schlotzsky's reaches approximately 100 franchise stores[1]

    Other

    The franchise system had grown to approximately 100 locations when John and Jeff Wooley and Gary Bradley acquired the company.

Sources2 sources

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