At the same time, the number of restaurants has seesawed. Naugles began the 1984 fiscal year with 172 outlets, grew to 213 units seven months later, fell back to 186 at the end of the year and then increased to 218 units and seven franchisees by last July. If it shuts down all units marked for closure, Naugles will be left with only 144 restaurants.
"Naugles' problem was that it expanded way too aggressively, added too many units outside its core market area (California), and they were not performing as well as those inside the core area," he said. [Sarah Stack] said Naugles management also had lost its grip on expenses and was unable even to say what it cost the company to prepare and serve an average meal. Collins Foods is so cost-conscious, she said, that "flags will go up if costs go up 1/10th of 1%."
NAUGLES INC. AT A GLANCE Naugles Inc., Fullerton, is a holding company for a chain of Mexican-American fast-food restaurants. It operates about 200 restaurants in five states, but has closed 14 so far this year and plans to close as many 56 in the next few months. Collins Foods International, Los Angeles, owns 50.1% of Naugles' stock.