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RCI Hospitality Subsidiary Launches Bombshells Franchising Program

RICK | October 6, 2015

HOUSTON, Oct. 6, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) subsidiary BMB Franchising Services, Inc. today announced that it is beginning a nationwide franchising program for its Bombshells Restaurant and Bar.

"Bombshells is the first military-themed franchise in the sports bar/casual dining segment," said Eric Langan, President & CEO of RCI.

"We bring the theme alive through our design strategy combined with our Bombshell Girls, who are growing in popularity every day.

"As a result, we attract families, singles, and couples, who want to enjoy a full bar, good food, music and an energetic atmosphere, for lunch, dinner and late night."

Highlights

The restaurant sets itself apart with decor that pays homage to all branches of the U.S. military, live music by popular local bands, large outdoor patios, and more than 75 state of the art flat screen TVs for watching your favorite sports. All food and drink menu items have military names.
Bombshell Girls, with their military-inspired uniforms, are a key attraction. Their mission, in addition to waitressing, is to interact with guests and generate a fun atmosphere. "They are our image, brand, and future," said David Simmons, President of BMB Franchising Services.
The full bar specializes in draft beer, with most locations offering 16 taps, and military inspired drinks, such as Pearl Harbor, American Flag Pina Colada, Bang Bang Bloody Mary, and Big Red Rita.
Menu items include wings, with the focus on hot and tasty (Defcon 5 being traditional Buffalo, rising to Defcon 1 being nuclear); lighter fare (blackened chicken salad, grilled tilapia and wraps); and signature items (Uncle Spam, Gung Ho, The Duke, Ike's Ribeye, and M2's).
A typical Bombshells measures 7,500-10,000 square feet. Total estimated initial investment to begin operations of a unit is $1.75-$3.0 million converting an existing space and $2.3-$3.1 million building a new space. Royalty is 5.5% of gross sales.

Started in Dallas

The first Bombshells opened March 2013 in Dallas, quickly becoming one of the most popular restaurant destinations in the area. Within a year, four more opened in Austin and Houston. Of the five, three are freestanding pad sites and two are inline locations.

The restaurants have raised funds for Folds of Honor, which provides scholarships and assistance to the spouses and children of those killed or disabled in service to America.

David Simmons brings a vast amount of industry experience as President of BMB Franchising Services. He began his career working part time at a Pizza Inn in Dallas, which led to his owning three franchise locations in Austin, TX.

Later, he was named to positions of increasing responsibility at renowned restaurant groups such as Brinker, Planet Hollywood, Black-eyed Pea, Pizza Inn and Dallas Restaurant Group. Each experienced top and bottom line growth under his direction.

'You Immediately Feel the Concept'

"Bombshells is completely different from other themed restaurants," Mr. Simmons said. "You immediately feel the military concept through our holistic design strategy and attention to detail."

Existing locations have used old Chicago brick, cold rolled steel, solid iron, reclaimed wood, and blacked out windows to give the feel of a military installation. The cold rolled steel looks like it is part of an airplane. The painted out windows look like they are from barracks.
Design elements have included fighter plane wings over the bar; helmets from WWI to modern era military; booths made from bomber jacket leather; slatted wood, military crate-style wall finishes; and columns decorated with 50-caliber shells.
Exteriors look like hangars. Cold rolled steel is allowed to rust, to give it an aged feel, before it is sealed. Palm trees and other tropical touches give it a Pearl Harbor feel. Stacked sandbags built into low barrier walls separate the restaurant from the parking lot.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)

With 46 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to the operational and financial results of its Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Note

This press release is for general information only and is not intended as an offer to sell or the solicitation of an offer to buy a franchise. Certain jurisdictions regulate the offer and sale of franchises. If the offer or sale is regulated by any of these jurisdictions, we will not offer or sell you a franchise unless and until we have complied with all applicable requirements.