el Restaurante TOP 50 MEXICAN CHAINS

held (Chuy’s Holdings), reached the 100-location mark in 2018, but closed a few locations during COVID and now stands at 97. However, the company plans to open six to nine locations in 2023, so it should pass the centennial number this year. And it’s shooting for a 10 percent jump in 2024.

Most of Chuy’s new spots will be about 5,500 square feet, compared to its traditional 7,600-square-foot format. Company CFO Jon Howie explained at a restaurant industry conference that the smaller stores, which have larger patios and more drive-thru space, provide a better return and allow them to build on smaller footprints.

Torchy’s Tacos — the Austin-based fast-casual restaurant that started as a food truck in 2006 and now has locations across 11 states — jumped from 84 units in 2021 to 100 last year, and now stands at 112. Company founder and CEO Mike Rypka was quoted in Nation’s Restaurant News saying that he had planned to grow even faster, but COVID-related construction delays slowed things down. He said he hopes to grow by 10 to 15 percent a year going forward.

Now let’s consider three Mexican multi-units that have not yet achieved 100 locations but appear to be headed that way quickly.

Condado Tacos is a new entry to the Top 50 list. The chain, founded in 2014, currently has only 39 locations across the Midwest, but is growing rapidly and plans to hit 100 locations within the next few years. The company has 12 locations on the drawing board for 2023. Many of those are planned for new markets, including St. Louis, Louisville, and Birmingham, Alabama.

“We are thrilled to announce our goal to grow Condado Tacos significantly over the next few years,” said Chris Artinian, Condado Tacos president and CEO, in a press release. The release explains the restaurant’s appeal: “Condado Tacos has created its niche as a full-service restaurant company and fits perfectly into the NextGen Casual category of exciting restaurant growth concepts. Craveable and innovative tacos and margs combined with its speed of service and accuracy are major components for both Condado’s in-restaurant dining and To Go.”

Fajita Pete’s is another restaurant that appears to be headed quickly in the 100-unit direction. The company currently operates just 27 locations according to our count but signed a deal in mid-2022 with a franchisee to open five locations in Chicago. “This latest deal signing brings the total Fajita Pete’s opened plus awarded unit count to just north of 100,” according to a company press statement.

Fajita Pete’s, opened in 2008, distinguishes itself from most other Mexican/Tex-Mex establishments in that it focuses on takeout, delivery and catering. A typical location is about 1,200 square feet with just a handful of tables for instore dining. The restaurant’s current locations are in Texas, but it has awarded franchises in at least three other states.

Finally, Velvet Taco is in the race toward the 100 mark. The company was founded in Dallas in 2011 and is known for its selection of 20 gourmet tacos and a weekly special. It has made a point of repurposing existing buildings, such as previous restaurants or gas stations, for its new locations. It added 12 locations in 2022 and plans for 13 more in 2023, which would bring its total to 55. CEO Clay Dover has said he expects to reach 100 units by 2026.

Joining the 100 Club is a goal for many multi-units, but that’s not the only aim for most CEOs. Another is to sell the company when the time is right. The time apparently was right for at least three Mexican multi-units in 2022.

In August, QDOBA was sold to Butterfly Equity, a Los Angeles-based private equity firm. QDOBA has 740 locations and is third on the el Restaurante Top 50 list; it reportedly is aiming to eventually reach 2,000 locations. The company plans to open 100 to 200 new locations per year. This was not the first time QDOBA was sold; the company, founded in 1995, counts among its previous owners Apollo Global Management, Jack in the Box, and Western Growth Capital.

In December the then-owners of Fuzzy’s Taco Shop — then owned by NRD Capital Management — decided the time was right to sell. The company’s 138 units went to Dine Global Brands for $80 million. Dine also owns Applebee’s and IHOP. Fuzzy’s was founded in 2003 in Ft. Worth, Texas, and specializes in fast casual Baja-style Mexican cusiine.

Finally, in January 2023, Rusty Taco found new owners. This 35-location taco shop, founded in 2010, had been owned by Inspire Brands since 2018. But it was a small fish for Inspire, which also owns Arby’s, Sonic and Jimmy Johns. The new owner is Gala Capital, a firm that focuses on 50- to 100-unit brands.

Get out your salsa-making ingredients and create a unique foodservice salsa recipe you think has the consistency and flavor to wow the judges. The grand prize winner will receive a Sammic XM-52 Immersion Blender and $750. Second and third place will receive $500 and $250, respectively. Plus the top three recipes will be featured in the NovDec issue of el Restaurante.

All readers of el Restaurante are welcome to enter the contest. The recipe must be an original recipe of your own creation. There are no restrictions on the ingredients of the recipe. All recipes will be judged on taste, creativity and appropriateness for foodservice applications.

TO SUBMIT YOUR RECIPE, GO TO www.elrestaurante.com/2023-salsa-contest

Recipes must include:

1. The name of your salsa

2. The amount of salsa the recipe makes (must be in 1-to 4-cup quantities)

3. Specific instructions on how to make the salsa

All recipes must be received by midnight, August 18, 2023

By submitting the recipe in this contest you are giving permission to el Restaurante to reprint the recipe in the NovDec 2023 issue of the magazine, on the www.elrestaurante.com website, in our Recipe-of-the-Week emails, and on special recipe cards to be distributed at the Western Foodservice Expo.