New Lunch Combo: IBM and Schlotzsky's Order e-Business for 700+ Restaurants

New Internet-based Technology Menu Also Includes Aloha Software Applications and Advanced IBM Point-of-Sale Systems, Servers, Wireless and Pervasive Computing

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AUSTIN, Texas & ARMONK, N.Y. - 03 Oct 2001: Schlotzsky's® started in 1971 with a single South Austin deli and an unusual made-up name.

High tech was an oven, a phone and a cash register -- all standalone, of course.

However, today, Schlotzsky's and IBM, the world's largest information technology company, announced a comprehensive technology agreement which provides the foundation for the approximately 700 Schlotzsky's quick service restaurants worldwide to be linked together and equipped with advanced IBM e-business technology.

Schlotzsky's® Deli restaurants will serve customers with specialized, retail-hardened IBM point-of-sale systems and Aloha software solutions, and will communicate with customers, each other and headquarters through the Internet. In addition, some Schlotzsky's restaurants will soon be able to allow customers to place and pay for orders with their personal digital assistants (PDAs).

"This agreement with IBM and Aloha is part of Schlotzsky's plan to be one of the first restaurant chains to build an advanced e-business infrastructure,'' said Robin Hanna, Schlotzsky's chief information officer, who also spent more than 20 years in the personal computer industry. "Our market is very competitive, and our franchisees need quick, timely information and communications to give them a competitive edge.''

"In addition, our customers want the convenience of the advanced technology they already use every day. We're also headquartered in Austin, Texas, one of the world's best-known cities for high technology. So it's important that we become the leading, technology-driven upscale food service chain -- from the latest servers and point-of-sale systems, to the Internet, wireless and pervasive computing technologies.''

"Retailers of all types, including food service and hospitality, are quickly realizing that advanced, e-business technology can transform their business, improve operations, enhance customer service and contribute directly to the bottom line,'' said Tom Peterson, general manager, IBM Retail Store Solutions.

Referring to Schlotzsky's slogan, "Funny Name. Serious Sandwich.®'' he said, "In addition to building serious sandwiches, they also are building a serious e-business infrastructure and leading what we believe will be a strong trend in this area. Consumers are quite comfortable with the Internet, PCs and cell phones, and they are demanding the ability to have choice, convenience and control over their shopping experience, whether it be for an upscale Schlotzsky's® sandwich or consumer electronics.''

In addition to providing Schlotzsky's with its award-winning web-based ASP, Aloha's Internet Services worked with Schlotzsky's IT team to interface Aloha with the sandwich chain's back office software, creating a unique system called SANITY (Schlotzsky's Aloha Network Information Technology).

"We are thrilled to be partnered with such dynamic industry leaders as Schlotzsky's and IBM,'' said Martin Siebert, Aloha's vice president of sales and marketing. "The ease-of-use and swift delivery of business-critical information that Aloha offers makes us a great fit for their needs.''

Schlotzsky's, which has more than 700 Schlotzsky's® Delis worldwide, is launching technology initiatives that include:

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