Muscle Maker Grill Provides Update on Q2 Financial Results - Seite 2

Roper continued “While I am not thrilled to report operating losses, I am happy to report that on a trending basis, we believe we are seeing the beginning of a return to normalcy across most of our existing markets. During this downturn we have continued to advance our non-traditional model, and we feel uniquely positioned to demonstrate material growth over the balance of this year. “

University

Universities represent an exciting opportunity as we recently announced agreements with Texas Tech University Health Sciences Center El Paso (TTUHSC El Paso) as well as four locations with the Northern Virginia Community College System. Construction is underway and we hope to have all five of these locations open in the immediate term. We believe the university opportunity as one where we can continue to expand for many years to come.

Ghost Kitchens

Additionally, we have begun to open the first five, of the initial ten, ghost kitchens we had previously announced in the Chicago market. These five delivery-only ghost kitchens allow the company to cover the entire Chicago market at a fraction of the cost it would take to build out traditional locations for the same geographical coverage. We continue to believe that this vertical can offer us significant accretive growth from the initial ten location agreement while leveraging the continued delivery trend in the restaurant industry. Ghost Kitchens are unique in that we can run multiple Muscle Maker concepts out of one kitchen, further reducing the average cost of build out per concept. In Chicago, we are currently running Muscle Maker Grill, Healthy Joe’s and a new Muscle Maker Meal Plan concept out of each ghost kitchen. We believe the delivery-only model being perpetuated by ghost kitchens is a trend that is going to continue to disrupt and to grow share across the QSR (Quick Service Restaurant) sector, and I believe we are uniquely positioned to ride that wave.

Earlier this week we announced the initial agreement with Reef Kitchens, this is a pilot program in which we will begin to license our brand to their model. There are no material working capital needs to our company, and we have the potential to expand across their network of 70+ locations and growing. This is an exciting opportunity that can potentially expand the footprint of Muscle Maker Grill across multiple major metropolitan areas at a rapid pace.