We discussed NYC before on this board. NYC is a terrible market for any type of chain operation, ESPECIALLY delis, because NYC has so many great mom and pop delis already (like the Soup Nazi). The general population in NYC despises chain stores. I say stay out of the new york city market.
That said, Schlotsky's is the *perfect* concept for the growing yuppie suburban America. Dallas, Atlanta, Phoenix. Just take a look at your average Schlotsky's lunchtime drive thru customer. One time I saw a line of about 5 cars, every ONE of them talking on their cell phone while waiting for the sandwhich.