For Tubby’s Submarines customers who want dessert after their sandwich, the time is near.
The Roseville-based sandwich chain has acquired the Just Baked line of cupcakes and desserts and will be incorporating them into its restaurants in the next few months.
“This is a great opportunity for us to begin to broaden Tubby’s offerings and our overall appeal,” CEO Robert Paganes said in a statement. “That’s something we’ve wanted to do, the time was right for us to do it, and the well-known Just Baked name was available.”
As part of the deal, Tubby’s purchased the Just Baked trademark, product recipes and distribution rights of the Livonia-based company.
The deal will not affect the existing six stand-alone Just Baked franchises in Canton, Troy, Novi, Southgate, Ann Arbor and Livonia.
“This was a going-forward deal, meaning that much of the previously established Just Baked infrastructure and operations were not included in the transaction,” said Paganes. “Having said that, we look forward to promoting the Just Baked brand and believe it will be a win-win for all those involved.”
Just Baked founder Pam Turkin and her husband and business partner Todd issued a statement thanking the owners of the stand-alone cupcake shops.
“These entrepreneurs have kept the brand alive during this transitional period and for that we are grateful,” she said. “They have always been committed to the Just Baked brand and will now have the rights to continue to bring the community the greatest Just Baked products using the original baking team.”
Turkin said she is unfamiliar with the details of the announcement and has not yet met with Tubby’s.
“We are hopeful that the Tubby’s transaction will allow the Just Baked brand to flourish and that the new team will continue to work toward bringing Just Baked products to an even bigger audience,” she said in the statement.
Paganes said Tubby’s stores have room to display the desserts so there will be no added costs for the franchisees.
Founder Richard Paganes opened the first Tubby’s shop in St. Clair Shores in 1968. Over the years, the chain has grown to include 60 locations across Metro Detroit.
Just Baked got its start in 2008 when Turkin rented the recently closed Burghardt’s Bakery in Livonia and began selling treats in various stores. She used her children as test subjects for the new flavors she developed. A retail shop came soon after.
In a few short years, the cupcake retailer had expanded to 17 stores. But the success didn’t last long, with Turkin announcing in January that Just Baked was struggling financially and would close most of its stores.
Back in 2011, the Turkins told The Detroit News they expected to have about 50 franchises by the end of 2012 and 200 by 2014.