What's Next In Mexican?

The Mexican fast-casual franchise industry is growing and brands will be new things to keep that momentum going.

SPONSOREDUpdated 3:15PM • 01/07/16

The recent E.coli scare at Chipotle restaurants has sent the Mexican quick service chain into some turbulence. The brand has seen their stock dip over the past few weeks and people are staying away from the restaurants, making it look like a ghost town inside. But Chipotle’s bad luck isn’t keeping customers from devouring burritos at warp speed. The Mexican quick service restaurant industry has seen great success over the past year and is adapting older concepts to maintain that prosperity.

Consumers are always looking for something they can devour quickly in order to get back to staring blankly at their smartphones. Tacos and burritos are the perfect meal that will allow consumers to multi-task (we all know at least one person who has texted while holding a burrito in their other hand). Mexican cuisine franchises are extremely popular today, and some brands are tweaking their old models in order to stay relevant in the industry. Van Ingram, vice president of franchise development at Taco John’s, said these types of restaurants have an added appeal—they can easily offer standard Mexican cuisine while maintaining the flexibility to adjust to new trends in the food industry.

“The Mexican category continues to outpace the quick service restaurant segment in growth,” Ingram said. “People continue to look for alternatives to the standard burger, sandwich and chicken fare. Fast casual has had a very successful run, but seems to be slowing down a bit. There has been a proliferation of new brands entering the fast casual space and many are blurring the line between fast casual and casual restaurants.”

He went on to say that as long as a brand capitalizes on quality, with fresh ingredients and a focused menu, they’ll be able to survive. And that seems to be what most of these franchises are doing. How many times have you seen people line up outside a taco joint to try the newest incarnation of a standard taco? Onions and cilantro on these delicacies are just the beginning, as brands are willing to try anything–toppings like pickled vegetables and different sauces are the norm these days, and they’ll only continue to evolve.

Taco Bell made waves when it introduced a line of breakfast menu items, I mean, come on, how good does a hash brown sound in a breakfast burrito? Fast-casual burrito chain Moe’s Southwest Grill, whose menu already consists of hilariously-titled burrito selections such as the Joey Bag of Donuts burrito and Art Vandalay burrito, recently hired Jason Dowd in December 2015 as its new executive chef.

Ingram went on to say that limited time offer menu items can be a way to attract new customers. Taco John’s “Summer of Taco’s” campaign, which was a line of quick-to-order street tacos, helped the brand enormously as it saw an 11.1 percent jump in sales year-over-year during the first week of sales when it debuted April 6, according to QSR Magazine.

A mouth-watering menu is a way to attract customers, but the sweet smells of pulled pork and salsa can’t be the only ways to get people in the door. Ingram said that people are constantly in a hurry to get their grub, and fast-casual and quick service restaurants need to keep this in mind. If consumers don’t get their Barbacoa taco with organic pickled jalapenos right away, they may settle for the taco cart down the street.

“At Taco John’s, we give people high quality products that compare favorably with fast casual, but we also give them the convenience of the drive thru,” Ingram said. “In today’s world, time is paramount. The fast casual category has set a high bar, but we can more easily offer our value oriented core-products and still introduce new products that meet the same quality standards as the fast casual concepts.”

Eclectic offerings and quick service are two crucial elements for Mexican fast-casual franchises, but these brands should also understand the employees are a key cog. Ingram said keeping employees happy, whether raising wages or offering incentives, are great ways to do this and sustain a viable business model.

What's Next In Mexican?

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