Chili's 2008 Annual Report Download - page 24

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Item 2. PROPERTIES.
Restaurant Locations
At June 25, 2008, our system of company-owned and franchised restaurants included 1,888 restaurants
located in 50 states, and Washington, D.C. We also have restaurants in the countries of Bahrain, Canada,
Ecuador, Egypt, Germany, Guatemala, Honduras, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico,
Oman, Peru, Philippines, Puerto Rico, Qatar, Saudi Arabia, South Korea, Taiwan, United Arab Emirates,
United Kingdom, and Venezuela. We have provided you a breakdown of our portfolio of restaurants in the
two tables below:
Table 1: Company-owned vs. franchise (by brand) as of June 25, 2008:
Chili’s
Company-owned ........................................... 894
Franchise ................................................ 558
On the Border:
Company-owned ........................................... 135
Franchise ................................................ 33
Maggiano’s ................................................. 42
Macaroni Grill:
Company-owned ........................................... 194
Franchise ................................................ 32
Total .................................................. 1,888
Table 2: Domestic vs. foreign locations (by brand) as of June 25, 2008 (company-owned and
franchised):
Domestic (No. of States) Foreign (No. of countries)
Chili’s ........................ 1,291 (50) 161 (24)
On The Border .................. 165 (33) 3 (3)
Maggiano’s ..................... 42 (21 & D.C.) None
Macaroni Grill .................. 212 (40) 14 (10)
Restaurant Property Information
The following table illustrates the approximate average dining capacity for each current prototypical
restaurant in our restaurant brands:
Chili’s On The Border Maggiano’s Macaroni Grill
Square Feet ....... 3,930-5,450 4,000-5,690 12,000-17,000 6,300-7,000
Dining Seats ....... 150-220 150-230 500-700 205-230
Dining Tables ...... 35-50 37-55 100-150 50-70
The leases typically provide for a fixed rental plus percentage rentals based on sales volume. At
June 25, 2008, we owned the land and building for 282 of our 1,265 company-operated restaurant
locations. For these 282 restaurant locations, the net book value for the land was $241.2 million and for the
buildings was $237.0 million. For the remaining 983 restaurant locations leased by us, the net book value of
the buildings and leasehold improvements was $977.6 million. The 983 leased restaurant locations can be
categorized as follows: 774 are ground leases (where we lease land only, but own the building) and 203 are
retail leases (where we lease the land/retail space and building). We believe that our properties are
suitable, adequate, well-maintained and sufficient for the operations contemplated. Some of our leased
restaurants are leased for an initial lease term of 5 to 30 years, with renewal terms of 1 to 35 years.
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