Mexican Restaurant Chain Qdoba Looks to Add 40 New Locations This Year

The quick-service Mexican restaurant is looking to open 40 new locations this year, with more in subsequent years, as part of its strategy to double its current 750 locations during the next decade.

"Qdoba is an exceptionally well positioned brand in one of the most attractive restaurant categories,” said John Cywinski, CEO of Modern Restaurant Concepts, parent company of Qdoba. “We possess long-standing momentum, strong unit economics, a compelling operating model, an extraordinarily passionate guest following, and significant untapped geographic potential.

Qdoba is currently 80% franchised with 85 franchise partners in the U.S.  

“We are in the process of aggressively accelerating new restaurant development in partnership with existing and new franchisees,” Cywinski said. “Once our pipeline is fully established, we expect to sustain a 10% annual growth rate through new restaurant development.”

In keeping with its selective refranchising strategy, Qdoba recently sold 77 company-owned restaurants to existing franchisee, North Fork Fresh Mex, which now operates 97 Qdoba locations Missouri, Illinois, Indiana, Kentucky, and Virginia. North Fork has also committed to build 73 new restaurants during the next seven years and is now the chain’s largest franchise partner. 

Qdoba has now posted 10 consecutive quarters of positive comp sales growth, with average unit volumes of $1.6 million.