Exhibit 99.3

Schlotzsky's, Inc. Announces Third Quarter Results

3Q Results Reflect Economy; Planned Investment in Company-Owned Restaurants

AUSTIN, TX (Wed., Nov. 13, 2002)Schlotzsky's, Inc. (Nasdaq: BUNZ) today announced results for the third quarter that ended September 30, 2002,
with revenue of $15,093,000, down 2.7% compared to the same quarter last year. The Company posted a net loss for the quarter of $240,000, or a loss of $0.03 per diluted share, which Company officials
attributed to continuing weakness in the economy at a time when the Company is also investing resources in its concept and preparing for growth.

For
the nine months ended September 30, 2002 the Company reported net income of $876,000, or $0.12 per diluted share on revenues of $46.2 million. This compares with net income of
$2,001,000, or $0.27 per diluted share, on revenues of $46.9 million, in the prior year period.

While
systemwide sales, same store sales, and net income declined compared to the third quarter of 2001, during the quarter the Company retired the remaining portion of its $40 million
December 1999 bank group credit agreement with the proceeds of mortgage financing, and exercised its option to acquire the territorial rights of its largest area developer, said officials.

In
addition, the Company reports that it continues to work on a long-term financing plan that will be used primarily to develop new Company-owned restaurants in as many as 25 key markets
throughout the U.S., to reduce certain debt that has higher interest rates and shorter terms, and for the repurchase program for the Company's common stock. The Company is pursuing financing
alternatives, including asset-backed financing secured by intellectual property and related royalty rights and agreements. If implemented, the Company would create wholly-owned subsidiaries to hold
its intellectual property and related royalty rights and agreements and to manage and service these assets.

"Schlotzsky's,
like many consumer focused companies, has been impacted by the prolonged soft economy, particularly in our key markets of Austin and Dallas; but we are focused on being in the best
possible position for when the economy recovers. We continue to make strategic investments in the proven Schlotzsky's concept, and intend to accelerate the development of Company-owned restaurants to
lead our system. The decision to expand the Company-owned restaurants will enable shareholders much greater participation in the strong revenue possibilities we know Schlotzsky's is capable of
delivering," said John C. Wooley, president and CEO.

"The
time is right as American tastes trend in our direction. McDonald's, Burger King, and the entire burger category are in decline, as reported this week inThe Wall Street
Journal. We expect that billions of consumer dollars will shift as more Americans migrate from burgers to fresh sandwiches and healthier alternatives. As an originator of the
upscale sandwich category, Schlotzsky's is preparing to claim our share in the coming land rush for Americans' dine-out dollars" concluded Wooley.

Other
highlights for the quarter include:



---



Schlotzsky's
will conduct a conference call to discuss information included in this press release and related matters at 9:30 A.M. Central time on Wednesday, November 13,
2002. The conference call will be hosted by John C. Wooley, and will be available for analysts and institutional investors at 1-800-341-2319, PIN #8404. The
conference call will be available simultaneously, and in its entirety, to all interested investors and news media through a webcast atwww.cooldeli.com.

The
following is a reconciliation of net income (loss) to earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarters ending September 30, 2002 and
2001:

2002

2001Net income (loss)

$
(240,000
)

659,000Interest expense, net


678,000


414,000Provision (credit) for income taxes


(60,000
)

395,000Depreciation and amortization


1,273,000


1,072,000EBITDA

$
1,651,000

$
2,540,000


---

Schlotzsky's, Inc.,
founded in Austin, Texas, in 1971, is a franchisor of fast casual restaurants featuring upscale made-to-order hot sandwiches served on distinctive
sourdough bread, along with sourdough crust pizzas, salads and soups. As of September 30, 2002, there were 658 Schlotzsky's® Deli restaurants open and operating in 37 states, the
District of Columbia and nine foreign countries. Visitwww.schlotzskys.comorwww.cooldeli.comfor more
information and e-coupons.

---

This
news release contains "forward-looking statements," as defined under the federal securities laws. Forward-looking statements include those regarding the business plans and
prospects of the Company. Forward-looking statements reflect the Company's expectations based on current information. The Company undertakes no obligation to update any forward-looking statements.
Shareholders and prospective investors are cautioned that actual future results may be materially different because of various risks and uncertainties, including but not limited to ability to obtain
new credit facilities to accommodate the development of new Company-owned restaurants and for other purposes, the ability to acquire restaurant development sites and construct restaurants, and factors
identified in the Company's Form 10-K under the heading "Risk Factors."

Contacts:Media/Investors:
        Schlotzsky's, Inc.        Jessica Furlow, 512/236-3644        Susan Engelking, 512/342-8870
        or        Investors:        Fleishman-Hillard        James Ankner,
212/453-2198anknerj@fleishman.comor        Russell Johnson,
713/513-9515johnsonr@fleishman.com

---

SCHLOTZSKY'S, INC. AND SUBSIDIARIES  CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)

|                                            |                                     | Three Months Ended                |                | Nine Months Ended |           
|------------------------------------------- | ----------------------------------- | --------------------------------- | -------------- | ----------------- | ----------
|
|Revenues                                    |                                     |                                   |                |                   |           
|                                            | Royalties                           |                                   | $              | 4,984,274         |           
|                                            | Franchise fees                      |                                   |                |                  |           
|                                            | Developer fees                      |                                   |                | 59,369            |           
|                                            | Restaurant sales                    |                                   |                | 7,934,927         |           
|                                            | Brands contribution                 |                                   |                | 1,820,224         |           
|                                            | Other fees and revenue              |                                   |                | 294,307           |           
|                                            |                                     |                                   |                |                   |           
|                                            |                                     | Total revenues                    |                |                   | 15,093,101
|                                            |                                     |                                   |                |                   |           
|Expenses                                    |                                     |                                   |                |                   |           
|                                            | Service costs:                      |                                   |                |                   |           
|                                            |                                     | Royalties                         |                |                   | 1,008,337 
|                                            |                                     | Franchise fees                    |                |                   |          
|                                            |                                     |                                   |                |                   |           
|                                            |                                     |                                   | 1,008,337      |                   |           
|                                            |                                     |                                   |                |                   |           
|Restaurant operations:                      |                                     |                                   |                |                   |           
|                                            | Cost of sales                       |                                   |                | 2,247,065         |           
|                                            | Personnel and benefits              |                                   |                | 3,305,235         |           
|                                            | Operating expenses                  |                                   |                | 1,988,932         |           
|                                            |                                     |                                   |                |                   |           
|                                            |                                     |                                   | 7,541,232      |                   |           
|                                            |                                     |                                   |                |                   |           
|Equity loss on investment                   |                                     |                                   | 58,624         |                   |           
|                                            |                                     |                                   |                |                   |           
|General and administrative                  |                                     |                                   | 4,833,741      |                   |           
|                                            |                                     |                                   |                |                   |           
|Depreciation and amortization               |                                     |                                   | 1,273,342      |                   |           
|                                            |                                     |                                   |                |                   |           
|                                            |                                     | Total Expenses                    |                |                   | 14,715,276
|                                            |                                     |                                   |                |                   |           
|Income from operations                      |                                     |                                   | 377,825        |                   |           
|Other                                       |                                     |                                   |                |                   |           
|                                            | Interest income                     |                                   |                | 119,195           |           
|                                            | Interest expense                    |                                   |                | (797,001          | )         
|                                            |                                     |                                   |                |                   |           
|                                            |                                     | Income (loss) before income taxes |                |                   | (299,981  
|                                            | Provision (credit) for income taxes |                                   |                | (60,000           | )         
|                                            |                                     |                                   |                |                   |           
|                                            |                                     | Net income (loss)                 |                | $                 | (239,981  
|                                            |                                     |                                   |                |                   |           
|Earnings per common sharebasic             |                                     | $                                 | (0.03          | )                 | $         
|                                            |                                     |                                   |                |                   |           
|Earnings per common sharediluted           |                                     | $                                 | (0.03          | )                 | $         
|                                            |                                     |                                   |                |                   |           
|OTHER OPERATING DATA                        |                                    
|Restaurants OpenBeginning of Period        |                                     |                                   | 671            |                   |           
|                                            | Openings During Period             |                                   |                |                   |           
|                                            |                                     | New                               |                |                   | 1         
|                                            |                                     | Reopenings                        |                |                   | 2         
|                                            |                                     |                                   |                |                   |           
|                                            |                                     |                                   | Total Openings |                   |           
|                                            |                                     | Closings During Period            |                |                   | (16       
|                                            |                                     |                                   |                |                   |           
|Restaurants OpenEnd of Period              |                                     |                                   | 658            |                   |           
|                                            |                                     |                                   |                |                   |           
|Systemwide Sales                            |                                     | $                                 | 97,987,000     |                   | $         
|Decrease in Systemwide Sales                |                                     |                                   | (7.7           | )%                |           
|Decrease in Same Store sales                |                                     |                                   | (6.3           | )%                |           
|Average Weekly Sales                        |                                     | $                                 | 11,357         |                   | $         
|Increase (decrease) in Average Weekly Sales |                                     |                                   | (2.9           | )%                |           

---

QuickLinks