Mexican Patio Cafes to Develop Two Pesos
Page, David, THE JOURNAL RECORD
Mexican Patio Cafes also has agreed to acquire through lease the Two Pesos Mexican Patio Restaurant at 412 S. Meridian Ave., said Joseph J. Johnston, chairman of the board and chief executive officer of Mexican Patio Cafes of Oklahoma City.
Mexican Patio Cafes will assume operations of the restaurant approximately May 1. Houston-based Two Pesos Inc., which owns the Two Pesos concept, opened the restaurant on Meridian in 1988 and the restaurant has historically generated cash flow from its operations, Mexican Patio Cafes said.
The restaurant, which has about 4,000 square feet of space and 40 full-time and part-time employees, generates sales of approximately $1 million annually, Johnston said.
The first Two Pesos in Oklahoma City opened in January 1988 at 4528 Northwest Expressway. The restaurant on Meridian and two others at 5418 N. Western Ave. and at Int. Hwy. 240 and S. Pennsylvania Ave. were opened later that year.
In the fourth quarter of 1989, all of the local Two Pesos were closed except for the Meridian restaurant. All four restaurants were owned and operated by Two Pesos Inc.
Mexican Patio Cafes is evaluating opening restaurants at the sites of the three closed Three Pesos units, Johnston said. The sites all have approximately 4,000 square feet.
The company also is investigating sites in Lawton and Tulsa, he said.
Two Pesos Inc. has developed a new 1,000-square-foot Two Pesos prototype. Mexican Patio Cafes is considering these units for smaller towns in Oklahoma, Johnston said.
"We believe that the Oklahoma territory has the possibility to support six or more stores," he said.
The transactions are subject to a definitive development agreement to be executed between the parties, Mexican Patio Cafes said.
Under the terms of the triple net lease, which includes a five-year initial term and three additional five-year options, the Mexican Patio Cafes said it will pay the greater of a nominal fixed monthly rent or a percent of gross sales plus a percent of the restaurant's annual net profits. …