New Qdobas in OKC? [Archive]

warreng88

01-18-2011, 11:56 AM

Read a story out of the Journal Record (I *think*?) over Christmas that said the owner of several Qdoba franchises here in OKC was planning to open two more here in OKC and some in Tulsa this year.

I was wondering if anyone heard any scuttlebutt about locations for the new OKC sites...? Anyone? We're pretty big Qdoba fans, so we'd love to hear about some options in the southern part of OKC. The manager at the Memorial Road location had told us about a year ago that one was planned for a spot very near us, but that was right at the time of all the economic implosion...

Here is the article:

Qdoba to add six restaurants in Tulsa, OKC markets
Journal Record, The (Oklahoma City), Dec 3, 2010 by Kirby Lee Davis

Qdoba Mexican Grill franchisees will open six new restaurants around Tulsa and Oklahoma City over the next three years.

Chris Winters, who operates five Qdoba Mexican Grills in metropolitan Oklahoma City, will add two more within that market next year, said Todd Owen, vice president of franchise development for Qdoba, a subsidiary of San Diego-based Jack In the Box Inc.

Springfield, Mo.-based Burrito Concepts LLC, operator of five Qdobas in the Tulsa area and one in Stillwater, intends to add four more among Tulsa's suburbs over the next two to three years, said managing member Randy Allen. Possible sites range from Bartlesville to Owasso, Sand Springs and Muskogee.

Qdoba also is in negotiations with Winters for franchising rights to other Sooner State areas, Owen said, while Allen is considering possible restaurant locations between Tulsa and Springfield, such as Joplin, Mo.

"We're by no means finished with our build-out of the market," Owen said of Oklahoma. "Based on the activity alone of those two franchisees, we intend to be pretty aggressive with the continued expansion of the brand there."

Qdoba's 530-restaurant chain, including 187 company-owned, impressed national analysts with a 5.6-percent same-store sales hike in its fiscal fourth quarter ended Oct. 3. Fiscal 2010 same-store sales rose 2.8-percent. The company projects 3- to 4-percent growth through fiscal 2011.

"We've had three straight quarters of positive same-store sales growth and sales continue to rise," said Owen in a telephone interview Friday.

As good as those marks are, the Tulsa stores beat them, Allen said, helping Burrito Concepts finish the year with double-digit revenue growth. The franchisee also operates three Qdobas in Springfield and one in Fayetteville, Ark., with one about to open in Rogers, Ark.

The Stillwater location also proved a front-runner, setting a national Qdoba single-day sales record on Bedlam Saturday.

"They've done nothing but set record sales up there," Allen said, noting its prized location across the street from Oklahoma State University and a block from Eskimo Joe's.

He projects a 5-percent same-store sales increase for 2011.

"I think Qdoba is something new and different for the Tulsa market," said Allen, noting the company's first three locations opened in Tulsa six years ago. "It took us a couple of years to get people accustomed to what it is we offer. They always thought it was something between a Subway and a Charleston's. It took a little while to get that message out that Qdoba is really about flavors and you get those flavors fast."

Allen attributed his company's 2010 success to new operating strategies adopted under fallout of the 2008 recession. By re- emphasizing product value and refocusing marketing efforts on social media, with special emphasis on high school and college students, Allen said Burrito Concepts managed to both boost consumer brand awareness and priorities.

"Our entire executive team focused on Tulsa all through 2010," said Allen, who also serves as chief financial officer of the Springfield-based real estate developers Morelock Ross Group of Companies. "We were here hammering away almost every day through catering, store marketing, advertising through social media. Next year we'll probably go back to Springfield. We're already profitable there, but it could be stronger."

Oklahoma expansion plans parallel expectations of 50 to 60 new Qdobas opening across the nation in 2011. That could approach doubling the 36 added in 2010, 15 of those company-owned.

Burrito Concepts will join with that not just in Oklahoma, but with new locations in northwest Arkansas and southern Missouri.

Qdoba footprints average 2,200 square feet, with a staff of 14 to 20, said Owen.

Allen said construction costs may range from $500,000 within a shopping center to $1.4 million for a stand-alone location.

"We actually prefer strip centers, but we couldn't find any in Tulsa," he said in an interview Friday.

The fast-casual chain focuses on fresh foods cooked on site, with customers invited to customize their orders. Entries range from $4 to $9, with tickets averaging $10.

"I think value is what saved us," said Allen. "People get our discounts, our loyalty card. Our redemptions on our royalty card went from 2.5 percent to 3.5 percent just in the past year. That's a big increase."

Neither Owen nor Allen would discuss average store sales. The consulting firm Morningstar said Qdoba stores averaged $900,000 in revenue in 2009.

"A store can be very profitable once it gets north of $900,000 per year," said Allen. "Each extra dollar you get can generate 50 cents in income."

After struggling to work through recessionary restrictions, Allen said Burrito Concepts is once again finding welcome ears among financers - and not just with construction costs, but also furniture, fixtures and equipment.

"I've been getting e-mails almost every week now from lenders I haven't heard from in two years," he said. "It is really opening up now for the franchise community."