Free wireless at Schlotzsky's Sandwich chain begins offering Web access outside its restaurants with rooftop antennas By Lori Hawkins AMERICAN-STATESMAN STAFF Thursday, August 8, 2002 Funny name, free wireless? Schlotzsky's Inc. has begun offering free wireless Internet access at most Austin restaurants, and it is installing rooftop antennas so folks blocks away can log on for free. A growing number of hotels and coffeehouses offer wireless connections to customers, but the Austin-based sandwich chain is taking it a step further by offering the service outside its restaurants. "We thought it would be neat to be at the hike-and-bike trail and get on your laptop wirelessly at no charge," Chief Executive Officer John Wooley said. Schlotzsky's is hoping the 4-foot antennas will provide Internet access to laptop users up to a mile from its restaurants. At some locations, the hope is to provide free access up to four miles away. Schlotzsky's expects to wire 10 of its Austin restaurants in the next week. Eventually the company hopes to roll out the service at its 650 stores nationally. So what's in it for Schlotzsky's? A little advertising -- when users log on, a Schlotzsky's Web page pops up -- and the chance to endear itself to Austin techies. "We're hoping people who like the idea will come in and buy a few sandwiches," Wooley said. Schlotzsky's earned $600,000 on sales of $15.2 million in the quarter that ended in March, compared with a net profit of $600,000 on revenue of $15.3 million during the same quarter in 2001. Its sales have been flat over the past four quarters. The wireless system is built around technology known as Wi-Fi, which stands for wireless fidelity. Currently, Wi-Fi primarily provides broadband Internet access to specially equipped laptops within a few hundred feet of a Wi-Fi base station or transmitter. These create what are known as "hot spots" in restaurants, airport lounges and offices. The beauty of Wi-Fi is that it is cheap and easy to install. Schlotzsky's will spend about $4,000 to get each restaurant up and running, plus about $800 a month per restaurant for T1, the high-speed telephone-based communications line that links the wireless access network to the Internet. Accessing Wi-Fi requires a special plug-in circuit card. Most high-end laptops now come with them, or they can be purchased for $40 to $75. Schlotzsky's wireless offering, called Cool Cloud, is an extension of the free Internet access it began providing in most Austin stores a year ago. That service offers PCs and iMacs with Internet access. Wooley's next goal is to expand the free access to schools, libraries and community centers. He would like to start with a wireless network at Huston-Tillotson College, which could provide wireless connections to nearby Blackshear Elementary School. "If we're going to do this, we should have a community purpose as well," Wooley said. "We want to go to locations on the other side of the Digital Divide." lhawkins@statesman.com; 912-5955
One regular original deli deal, no olives on jalapeno cheese bread... and ClutchCity.net!!! yesh! Free wi-fi is good!
Schlotzky's rocks. They are the only place I eat that has an internet connection so I can kill time while waiting for my order. Internet connections at fast food places are a big hit in Asia and Europe.
SIGH...I remember Schlotzky's. All the locations around me closed down...best sandwiches around... Anybody want to send me a Deluxe Original with pickles and spicy mustard on jalapeno cheese bread?
We've always had a Schlotzsky's here in town, but its not that close to my house so I've never bothered, but i just might have to try their sandwiches sometime... Is it just me, or is 600,000 profit per quarter for 652 stores a really crappy profit margin? Each store only makes less than 4,000 dollars profit each YEAR (edit).
Well, that would explain the store closings... It's the overhead. Ham, pastrami, chicken breast, turkey breast, and roast beef cost a heck of a lot more than ground beef...
That is a pretty crappy return but at least they made money. Unlike Cisco, Worldcom, etc. Need a point of reference in the restaurant industry.
Some of the stores are likely franchise operations were a lower profit margin is expected because of a much lower capital investment by the parent company.
