EXHIBIT 99.1

Board Removes Senior Management of Schlotzsky's Inc.; Names New CEO
and a Chairman

    AUSTIN, Texas--(BUSINESS WIRE)--June 17, 2004--In a special
meeting Thursday morning, the board of directors of Schlotzsky's Inc.
(Nasdaq:BUNZ) removed the senior management of the company and elected
a new interim chief executive officer.
    A company spokesperson said the board action included removing
company president and CEO John Wooley and replacing him on an interim
basis with David Samuel Coats, a veteran business executive. Senior
vice president Jeffrey Wooley, John Wooley's brother, also was removed
from office. Both Wooleys remain as directors of the company.
    The board also replaced its chairman, Floor Mouthaan, with
director Gary M. Cadenhead, a member of the faculty at the McCombs
School of Business at The University of Texas at Austin. Former Texas
Comptroller of Public Accounts John Sharp was elected vice chairman of
the board.
    Coats, the interim chief executive, is a Dallas, Texas lawyer with
extensive management experience in general business and the airline
industry. He has served as CEO of a leading U.S. package tour operator
and of a software company that provided revenue management systems to
more than 80 airlines and senior vice president of Continental
Airlines Inc.
    Schlotzsky's Inc., founded in Austin, Texas in 1971, through its
wholly owned subsidiaries, is a franchisor and operator of restaurants
in the fast casual sector. As of March 31, 2004, there were 537
Schlotzsky's(R) restaurants open and operating in 37 states, the
District of Columbia and six foreign countries. Visit
www.schlotzskys.com for more information.

    CONTACT: Schlotzsky's Inc., Austin
             Investor Relations:
             Monica Landers, 512-236-3626