Restaurant Development & Design

March-April 2015

restaurant development + design is a user-driven resource for restaurant professionals charged with building new locations and remodeling existing units.

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2 0 • R E S T A U R A N T D E V E L O P M E N T + D E S I G N • M A R C H / A P R I L 2 0 1 5 Peer to Peer up signature features like our Saucing Island. If you looked at the old design and the new [design] side by side you'd never believe it's the same brand. We feel it's a prototype that's going to be fresh and relevant for us for the next 10 to 15 years. rd+d: Did the ideal real estate type or foot- print change much with the new prototype? TT: No. For both of our brands we look for spaces that run between 2,900 and 3,500 square feet and that allow for drive-thrus, which we have at all of our restaurants. As for locations, we want to be at the corner of "Main and Main" – i.e., at a hard corner in front of a traffc light in front of a Walmart, mall or Target, etc. We also look for areas with a lot of rooftops and potential for building our catering and home-meal replacement business. rd+d. How does Taco Cabana ft into the growth strategy? TT: Our growth vehicle on that side is an extension of the brand called Cabana Grill, which is the format we'll grow with outside of Texas. Unlike Taco Cabana, it's not open 24 hours and it doesn't serve breakfast. It's fast casual and is largely the same menu as Taco Cabana – with a few signature items added – but it has an elevated design, including higher ceilings, larger windows and upgraded seating areas and fnishes. So far we've opened Cabana Grill units in Atlanta and Jacksonville and we're using the same prototype for new and refreshed Taco Cabana units in Texas, which we'll continue to fll in under that brand name in Texas only. rd+d: What are the biggest obstacles to meeting development targets right now? TT: The biggest by far is human capi- tal. We restructured all of our debt last year from almost 9 percent to around 2 percent and we're incredibly pleased with the availability and quality of real estate we're fnding in Texas. But our develop- ment pipeline is something that could re- ally crush operations if we let it. We have to make sure we have the right people who are well trained and able to deliver on brand promise. It takes a special kind of GM to handle the volumes we're doing. rd+d: Beyond entering new markets, what do you see as strong opportunities to grow sales? TT: Catering and home-meal replacement are major opportunities. We should be in the high single/low double-digits in catering and right now we're at about 1.5 percent for Pollo and less than that for Taco. And we see very clearly that the future, not just for fast casual but the industry as a whole, is going to be around two things: convenience and food quality. We already have very fresh, high- quality product, so how do we make it more convenient? rd+d: Is technology a big part of the answer? TT: It is. We're working hard to make our online ordering systems and drive-thrus more convenient and effcient. One example is a new app that lets guests order, pay and indicate a pick-up time. When they pull up on site, they just hit the button on the app and an employee brings their order right out to the car. We're also using a new iPad-like remote ordering system that employees can use as part of drive-thru and internal line management for to-go orders. It gets those orders to the kitchen faster, speed- ing service and thru-put. rd+d: You came out of retirement to lead the "new" Fiesta. What was the appeal? TT: I really enjoy the challenge of working with mature brands to reinvigorate them. In a previous positon, at Whataburger, the brand was 45 years old when I started there in 1994. Within 11 years we had tripled average unit volumes. When I joined Fiesta, Pollo was already 23 years old and Taco was nearly 33. It's exciting to blend a group of new profes- sionals with folks who have been with these brands for a while, to have these teams gel to create something really special. That's what you're seeing right now at Fiesta. + The new "Big Blue" prototype was developed to strengthen Pollo Tropical's brand positioning as a beach-like, Caribbean-themed concept as Fiesta Restaurant Group geared up to expand it into Texas.

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