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Tubby's Buys 'Just Baked' Cupcakes Brand

DETROIT (CBS Detroit) - Tubby's Grilled Submarines is now in the cupcake biz.

In an effort to "broaden Tubby's offerings" and "overall appeal," the Roseville-based company says, it's acquired Just Baked Cupcakes and plans to sell the frosted treats in sub shops.

"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," said Tubby's Submarines, CEO Robert Pagane, in a media release. "We have room to display the desserts in our stores so there's no added cost to our franchisees and they're eager to have delicious desserts to offer customers."

Paganes. said Tubby's purchased the Just Baked trademark, product recipes and distribution rights and will begin supplying cupcakes and other assorted desserts to Tubby's locations in the next few months, right alongside its popular Steak N' Cheese.

"The Tubby's brand is a 'Detroit Original,' known throughout Michigan for its freshness and quality products. We were grilling subs long before warm sandwiches became a national trend," said Paganes. "Just Baked shares a similar reputation and is also a metro Detroit-based company, so this is a great story involving two innovative Michigan companies."

Tubby's executive vice president Bill Kiryakoza says the company already distributes fresh products to Tubby's stores every day, so adding the Just Baked goods won't be an issue.

Paganes noted that there are several existing Just Baked franchises in metro Detroit that were not included in the deal.

"This was a going-forward deal, meaning that much of the previously established Just Baked infrastructure and operations were not included in the transaction," he said.

Tubby's spokeswoman Aimee Fitzgerald explained this is all part of an expansion plan that's already underway.

"We are adding more stores this year; we have several more coming this year," Fitzgerald told WWJ Newsradio 950.  "I don't know that we intend to add (the cupcakes) specifically for this, but they will be part of the further and also retrofitting our current locations."

Founded in Saint Clair Shores in 1968, Tubby's has 60 locations throughout metro Detroit.

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