Cosi Inc., the money-losing sandwich and salad chain, is leaving Deerfield, Illinois and moving its headquarters to Boston.
R.J. Dourney, a Boston-based franchisee who became Cosi's CEO in March, made the announcement today during a quarterly conference call.
"It's easier to move the company forward and recruit in Boston than it has been here in Deerfield," Mr. Dourney said on the call.
Cosi bought out its lease of 20,000 square feet at its current corporate office in Deerfield.
Mr. Dourney did not detail when the move would take place or whether any jobs would affected.
Cosi has struggled since it was founded in 1996 and has lost nearly $300 million since then. It lost $11.4 million in 2013 as revenue slumped 11.9 percent to $86.3 million. Sales at stores open for at least a year fell 3.9 percent last year.
It recently secured $5 million in funding from one of its largest shareholders.
Mr. Dourney said the company would focus on its franchising strategy and will begin to sell some of its 72 company-owned stores. Cosi has a total of more than 100 company-owned and franchised locations in 16 states, the District of Columbia, the United Arab Emirates and Costa Rica, according to its website.
LOST ADVANTAGE
Cosi may have been a fast-casual leader when it began in 1996, but Darren Tristano, executive vice president at Chicago-based food industry consulting firm Technomic Inc., said recently that the company lost that advantage with an unfocused vision. Some restaurants have counter service while others offer table service and alcohol.
Mr. Tristano said Cosi also suffers from a complex system that drives up operating costs, creates food-preparation delays and sours employees.
"The good news is they have multiple menu categories of breakfast, lunch and dinner," Mr. Tristano said. "The bad news is there are multiple competitors in each of those segments."
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