Staff photo by KATY KUEHNER
Judith Itara, left, and Mia Wright prepare burritos at the Qdoba Mexican Grill in South Tampa
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Published: November 11, 2009
TAMPA - Tampa's franchise burrito business is getting stuffed like a bulging tortilla.
Into the void left by sit-down joints that went belly up, the fast-made burrito is beginning to reign. Already, Tampa has four Chipotles, roughly eight Tijuana Flats nearby, a half-dozen Moe's Southwest Grills, not to mention a few dozen Taco Bells. That doesn't count any local burrito joints, of which there are many.
Now add three more Qdoba Mexican Grill locations opened recently, and six more in the next year or so.
"A lot of people are taxed for time and money lately, and this concept gives them something fresh, engaging and quick," said Wade Gosnell, a Qdoba franchisee opening up Qdoba locations across Florida. ("Qdoba" is a made-up word with no official meaning in Spanish; pronounced "cue-DOH-bah.")
Even among the relatively healthy fast-casual restaurant segment, Mexican concepts grew better than most, with 11.9 percent expansion last year, according to food service consultant Technomic.
Unlike the past incarnations of sit-down Mexican food like Chi-Chi's or Don Pablo's, these fast Mexican burrito spots focus on speed, a low price and a few standard items that customers can modify to their whims.
Similar to Chipotle, Qdoba tend to locate in high traffic intersections. Customers walk in a line past cooks who prepare burritos, tacos or quesadillas in a flow toward the cash register, and customers fill their own drinks at a fountain stand near the seating area.
For the most part, a burrito lunch can cost less than $8 with a drink, maybe a couple dollars more for an order of chips and guacamole. But it's the very nature of Mexican that seems to work well in the fast casual world long dominated by Panera Bread and others.
Typical burrito ingredients can be made fresh on site, but several hours in advance without going stale: Rice, beans, cheese, salsa, plus marinated and grilled meats. "There's a lot of opportunity there because the customer can add any of four extra flavors and it's endless," Gosnell said. Customers can watch chefs at work, giving them some interaction and flexibility not found in sit-down restaurants, Gosnell said.
Gosnell currently operates about 50 Papa John's locations in Florida, and could ultimately operate more than 20 Qdobas in Florida, he said. In Tampa Bay, the Qdoba concept is relatively new. It started in Denver in 1995, then grew dramatically after 2003 when San Diego-based Jack in the Box Inc. acquired the concept, expanding its ranks to more than 500 U.S. locations.
Rival Chipotle now operates more than 800 locations, and done well on the stock market this year. After hitting a relative low of under $40 per share in November last year, Chipotle stock is up to $90 this week. The company was able to raise prices on some items during this year, citing strong demand.
Qdoba parent Jack in the Box stock has been more volatile, ranging from about $28 per share to $17 during this year, and $19 this week.
Total Qdoba sales grew from $88.2 million in the 40 weeks ending July 6 last year to $107.2 million in the 40 weeks ended July 5 this year, as the company opened more locations. Though, "same store" sales at existing Qdoba locations decreased 2 percent year-to-date, the company said in corporate filings, "as the macroeconomic environment continued to affect consumer spending at restaurants with higher check averages."
In the meantime, Tampa burrito fans can expect a wave of Qdoba marketing around Tampa in the next year. The chain plans a push of radio, billboard and print advertising, Gosnells said, plus a social media campaign, in part about how to pronounce "Qdoba."
Reporter Richard Mullins can be reached at (813) 259-7919.
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