RESTAURANTS

New Markets: Restaurant Enterprises Group Inc. plans to sell franchises of its Coco’s Bakery Restaurants in an effort to expand into new markets. The Irvine-based company has formed a subsidiary to sell single-unit franchises initially in California and Arizona, sites of most of the 131 company-owned Coco’s in the United States. The company would later enter new markets, such as Florida and Hawaii. The franchises will sell for $35,000, not including construction costs, a 3.5% royalty and a 2.55% advertising fee. Conversion of an existing restaurant will run from $300,000 to $700,000, and construction of a new Coco’s will cost about $1.3 million. The first franchise is scheduled to open in Rancho Santa Margarita in July. Kenneth L. Harris, president of REG Restaurant Services, will take on additional duties as president and chief executive officer of the newly formed Coco’s Franchising Co. REG recently completed the purchase of 107 Bob’s Big Boy and Allie’s restaurants, which will be converted to Coco’s or Carrows restaurants in the next three years.