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Ask the guys behind Mucho Burrito what they look for in prospective franchisees and they’ll undoubtedly give the same answer: a passion for the product. That’s not much to ask, especially considering the details surrounding the birth of the brand.
Alex Rechichi and Sean Black were in the U.S. scouting locations for their original restaurant chain, Extreme Pita, when they came across a variety of fresh, gourmet Mexican grill concepts that intrigued them. “When we came home, we found ourselves saying: ‘I wish I could get a really good burrito,’ recalls Black, vice-president of Real Estate & Franchise Development for Extreme Brandz. When they quickly realized they couldn’t, the entrepreneurs knew they were on to something.
But according to Toronto-based NPD Group Canada, the concept-savvy duo weren’t the only people missing out on the flavourful authentic fare — Mexican cuisine comprises just one per cent of the foodservice industry in Canada. Upon further investigation, the partners found the Mexican food that was available didn’t offer the type of experience they were seeking. “Looking at a cross-section of Canada, it was hard to identify a chain that provided an upperscale offering in a fast-casual environment,” says Rechichi, president of Extreme Brandz, the company he founded when he launched Extreme Pita with his brother and CFO, Mark. “We thought it would be ideal for us to try and corner the marketplace and be the first to market with it here in Canada.”
Although the NPD Group only reports a four per cent growth in Mexican food in the past year, it’s clear Canadians are hungry for more diverse flavours. “We’re seeing people going after more flavour, more spice,” says Black, who asserts that in the past, Canadians hadn’t been experiencing the best of Mexican cuisine. “We surveyed the market in Canada, and we found that no one from a high-end franchise corporate level was doing anything across the country that even came close to resembling what the Mexican category looked like in the U.S.”
Fortunately, the guys were already ahead of the game — launching Extreme Pita in 1997 equipped them with the experience, capital and contacts needed to grow their new concept. “When you’re starting an entire franchise structure from scratch, there’s a tremendous amount of work and investment required. You must identify who’s going to help you and what the strategy is,” Rechichi explains. “We had a real sense of that already with [Extreme Pita]. We had that experience in our back pockets. We were able to tweak it and identify if there were synergies existing at head office and leverage those synergies to shoot the brand into the marketplace really quickly.”
The first store arrived on the scene in June 2006. In 2008, sales ballooned to $14.9 million, and 17 stores (and counting) now operate in Ontario, Saskatchewan and Alberta.Out in oil country, the Kiani family has carved out a name for the chain in Edmonton.
“I had no clue about Mexican food,” confesses franchise owner Shahnaz Kiani, who opened Western Canada’s first Mucho Burrito with her husband, Imran, last year. At the time, the Kianis claim they were put off by the Mexican food that already existed in the marketplace, but regardless, they decided to investigate a lead they found through a friend who owned an Extreme Pita, ultimately flying to Ontario to get a taste for the burrito business. “I’m a very picky eater, [but the food] was fresh. It looked healthy, it tasted and smelled great; all of the elements were there,” enthuses Shahnaz. Less than a year later, the couple has two stores in operation with plans to open an additional four in the future.
It took a lot of hard work to get where they are today. Mucho Burrito franchisees invest between $275,000 and $400,000 in initial startup costs; they spend eight days in the classroom learning everything from food safety to the economic model; and they put in three to four weeks of onsite learning about the operation firsthand. But then, as Black points outs, some stores are able to generate up to $5,000 in sales opening day. “We’ve really positioned ourselves as the Starbucks of Mexican food. So you can go in and grab it, but it’s a nice environment. It’s upscale,” he explains. Rechichi echoes his partner’s sentiments: “The environment, the seating, the music is conducive to staying a little longer,” he says. “It’s a fastpaced environment, but we still offer the culinary experience you find in a casual-dining restaurant.”
While the setting is important, the main focus is on the freshness of the product, which is a challenge the Kianis faced when they opened their first location. “We realized we couldn’t prep buckets and buckets of stuff in advance [to accommodate the long lineups],” explains Shahnaz, looking back on her first week of operation. “We make things as we go along…we didn’t have the luxury of time. Basically, it was fix this now or we are going to lose our customers.”Demand for the product was huge and to account for the quick product turnover the owners had to implement bigger containers to hold the fresh food on the cold table during busy times. “It’s not that you need more labour,” what you need is more organization, she says.
Still, Shahnaz boasts about the employees she has hired, explaining she’s had little turnover, even amid the Western labour squeeze. “In our restaurant you are our family. It’s that mentality, it’s that respect. We take pride and care with everybody, not just our customers – our employees are our customers.” The Kianis nurture their workers, and one is already working towards owning his own store. But whatever the goal, staff are encouraged with a common objective. “We tell our employees: ‘our goal is that when you walk away from here, you grow, whether you grow personally, professionally, emotionally or mentally, you grow,’” Shahnaz emphasizes.
Good staff and good organization put the Kiani’s first store on the map operationally, but it didn’t end there. In fact, Mucho eating contests promoted on TV stirred up additional chatter about the location, which has already created buzz on blog sites like chowhound.com. Perhaps 15 years in sales and marketing has given Shahnaz an edge. “Her knowledge and experience training and motivating her staff, is unheard of,” says Black. “She’s set the bar high for operational excellence.”
But Shahnaz insists success can be as easy as uno, dos, tres. “The unique thing about Extreme Brandz, particularly Mucho Burrito, is that all the hard work has already been done,” she explains. “The recipes are awesome, operationally everything is sound and the support teamis really, really good.All you have to do is bring your desire and your business background forward—youmix the two together and you’re guaranteed success.”
Perhaps it’s that sense of teamwork that is the secret ingredient to the company’s success, but Black and the Rechichi’s have only just begun their story.
They have 43 more fresh-mex units currently in development, and the savvy businessmen are hoping to hit 100 by the end of 2010.What’s more, they’re working on moving into countries like Australia and New Zealand. In the interim, look for new openkitchen concept store designs, an evolving advertising plan and, of course, a revolving door of fresh menu choices. After all, it’s all about the food. Just ask Shahnaz, who eats two burritos a day, twice a day. “I don’t get sick of them…Even our staff eats here every day,” she confesses. If that’s not passion, what is?
Brianne Binelli
Foodservice World
February 1, 2009 |
