Item 2. PROPERTIES.
Restaurant Locations
At June 28, 2006, our system of Company-operated, jointly-developed and franchised restaurants included 1,622 restaurants located in 49 states, and Washington, D.C. We also have restaurants in the countries of Australia, Bahrain, Canada, Egypt, Great Britain, Germany, Guatemala, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, Oman, Peru, Philippines, Puerto Rico, Qatar, Saudi Arabia, South Korea, Taiwan, United Arab Emirates, and Venezuela. We have provided you a breakdown of our portfolio of restaurants in the two tables below:
Table 1: Company-owned vs. franchise (by brand) as of June 28, 2006:
| Chili’s: Company-operated |
908 | |
| Franchise | 292 | |
| Macaroni Grill: Company-operated |
222 | |
| Franchise | 19 | |
| Maggiano’s | 37 | |
| On The Border: Company-operated |
123 | |
| Franchise | 21 | |
| Total | 1,622 |
Table 2: Domestic vs. foreign locations (by brand) as of June 28, 2006:
| Domestic (No. of States) | Foreign (No. of countries) | ||
|---|---|---|---|
| Chili’s | 1,085 (49 & D.C.) | 115 (23) | |
| Macaroni Grill | 232 (42) | 9 (6) | |
| Maggiano’s | 37 (20 & D.C.) | None | |
| On The Border | 144 (32) | None |
Restaurant Property Information
The following table illustrates the approximate average dining capacity for each current prototypical restaurant in our restaurant brands:
| Chili’s | Macaroni Grill | Maggiano’s | On The Border | ||||
|---|---|---|---|---|---|---|---|
| Square Feet | 4,000 – 5,900 | 6,300 – 7,000 | 12,000 – 18,000 | 5,200 – 6,200 | |||
| Dining Seats | 150 – 220 | 235 – 280 | 500 – 725 | 195 – 265 | |||
| Dining Tables | 35 – 50 | 50 – 70 | 100 – 150 | 45 – 65 |
Some of our restaurants are leased for an initial term of 5 to 30 years, with renewal terms of 1 to 35 years. The leases typically provide for a fixed rental plus percentage rentals based on sales volume. At June 28, 2006, we owned the land and building for 314 of our 1,290 Company-operated restaurant locations. For these 314 restaurant locations, the net book value for the land was $266.5 million and for the buildings was $271.0 million. On the remaining 976 restaurant locations leased by us, the net book value of the buildings and leasehold improvements was $871.1 million. We believe that our properties are suitable, adequate, well-maintained and sufficient for the operations contemplated.
Other Properties
We lease warehouse space totaling approximately 39,150 square feet in Carrollton, Texas, which we use for storage of equipment and supplies. We own an office building containing approximately 108,000 square feet which we use for part of our corporate headquarters and menu development activities. We lease an additional office complex containing approximately 198,000 square feet for the remainder of our corporate headquarters, of which approximately 197,500 square feet is currently utilized by the Company or reserved for future expansion of the Company headquarters, and the remaining approximate 500 square feet is under lease. Because of our operations throughout the United States, we also lease office space in Arizona, California, Colorado, Florida, Georgia, Illinois, New Jersey, Rhode Island and Texas for use as regional operation or real estate/construction offices. The size of these office leases range from approximately 150 square feet to approximately 4,000 square feet.