Qdoba Mexican Grill, the Denver-based “fast-casual” Mexican restaurant chain with 480-plus-units across the U.S., is actively seeking franchisees to expand into Greater Hartford, where it could eventually open as many as five or more restaurants over the next few years.
The planned expansion is part of an aggressive push into the Northeast by Qdoba, which opened 77 units in 2008 and is projecting to open 60 more this year.
“Given the growing fast-casual segment, the vast appeal of Mexican style foods and our success in similar markets we believe the brand is a good fit in Hartford,” said Todd Owen, Qdoba’s vice president of franchise development. “With the help of an experienced Hartford-area entrepreneur and restaurateur, we hope to increase our brand presence in Hartford over the coming year.”
Qdoba, which has not yet targeted a specific location in the Hartford area, is a 14 year-old restaurant chain with eateries that don’t offer full table service but promise a higher quality of food and atmosphere than a fast food restaurant. The menu centers around a variety of choices that are made fast, fresh and right in front of the customer, including burritos — Qdoba’s signature item — grilled quesadillas, taco salads, nachos, tacos and Mexican Gumbo.
The Denver-based company is the subsidiary of Jack in the Box, which acquired Qdoba in 2003 and has been growing aggressively ever since. Recently it has been concentrating its efforts in the Northeast, where it has units in Pennsylvania, New Jersey and Boston.
In 2007 Qdoba was named the fastest growing restaurant concept with system wide sales over $200 million, by Technomic, a Chicago-based food industry consulting and research company.
Owen said he believes Hartford is a good region to move into because it lacks many fast-casual type restaurants. The company’s success in surrounding Northeast cities also played into the decision.
“Compared to national levels of competition we view it as favorable in Hartford,” Owen said. “We will have a first-to-market advantage in the region.”
Nicole Griffin, executive director of the Connecticut Restaurant Association said there has been a growing demand for fast-casual restaurants across the country, and in Connecticut.
According to a report by Technomic, fast-casual is expected to increase between 10.8 percent and 12.5 percent each year through 2009.
Griffin said she thinks Qdoba would be as successful in the Hartford market as it has been in other cities across the country.
“In this economy people still want to go out to dinner,” Griffin said. “Fast casual restaurants allow people to do that at a less expensive price.”
The ideal franchise candidate, Owen said, will have three years of multi-unit restaurant management experience as an owner or operator and a minimum financial net worth of $2 million and liquidity of $500,000.
Owen said they would also like to sign a development agreement commitment of three to 15 units with prospective franchisees.
“We prefer to enter metro areas with franchisees that have the experience and the ability to tap into or develop at least three or more locations,” Owen said. “We could ultimately have one franchisee doing a large number of units or two or three franchisees doing individual units.”
Despite tough economic times, Owen said Qdoba plans to open 55 to 60 new locations this year.
He added that sales at Qdoba units have slowed by about 2 percent from the year ago period, but they are still tracking above national trends.
“That’s not a significant drop off,” he said. “A lot of restaurant operations have been impacted a lot more.”
But tough economic times also mean customers are looking for less expensive dining options, while still maintaining a quality experience.
“That’s exactly the base we are looking to attract,” he added.
Reader response:
“Having worked in the industry for over 20 years, I do not think they have done the proper research, there are lots of casual places that are reseasonable to eat at and in a few spots in the surrounding area we are overloaded with chain places. There are several Mexican places and 2 have just opened. ???” — Patricia Bruhn, Pebbles Graphics
