Also increasing is the number of franchise-operated restaurantsin the chain. Of its total store base, 13 are franchised. Incontrast, only 14 of the new stores opening this year will beoperated by the locally-based company.

Executives also announced a leasing agreement to develop futurestores in the Persian Gulf, targeting wealthy European tourists.However, the firm will "continue to focus on our US franchisedevelopments first and foremost," said William Koziel, Cosi's CFO,during its fourth-quarter conference call.

New units opening will take shape in a new prototype store Cosiis rolling out. But Koziel says that there are no plans to retrofitthe entire chain, though some older stores this year will get a"fresher" look, with new paint, furniture, awnings and otheradditions.

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