AFC IN BAGEL ROLE AFTER CHESAPEAKE BUYOUT

ATLANTA -- AFC Enterprises here, parent company of Church's Chicken and Popeyes Chicken & Biscuits, has acquired Chesapeake Bagel Bakery, McLean, Va., and has named two AFC officials to top spots at Chesapeake.

o expand AFC's breakfast and lunch business, the officials said.

AFC is looking to acquire additional bagel companies and complementary concepts such as specialty coffee companies, and will explore the feasibility of operating such concepts inside supermarkets, a spokeswoman said.

Bill Van Epps, formerly president of the AFC World Wide Business division, and Mark Rinna, formerly president of Popeyes Chicken & Biscuits, have been appointed president and chief operating officer, respectively, of Chesapeake Bagel.

AFC has Popeyes Chicken & Biscuits units in 12 Kroger stores in the Atlanta area and a Church's in a Kroger unit in Columbus, Ohio.

The AFC spokeswoman said AFC Enterprises, formerly called America's Favorite Chicken, changed its name last December in anticipation of acquiring businesses that would diversify its product offerings.

Under this first acquisition agreement, completed last month, AFC purchased all assets of Chesapeake Bagel except for eight company-owned units that will be converted to franchised units. Those units will be owned and operated by the founders of Chesapeake Bagel, Michael Robinson and Alan Manstof, and former Chesapeake Chief Executive Officer David Lavine.

Systemwide sales for Chesapeake, which has units in 32 states and Washington, totaled approximately $95 million in 1996. The concept offers a variety of freshly made bagels and other baked goods as well as sandwiches, salads, fountain drinks and specialty coffees.