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Clockwise from top, David Estes, chief operating officer; Randy Allen, co-owner; Chris Gruhlke, controller; Laura Newman, director of marketing & catering
Clockwise from top, David Estes, chief operating officer; Randy Allen, co-owner; Chris Gruhlke, controller; Laura Newman, director of marketing & catering

2012 Dynamic Dozen No. 11: Burrito Concepts LLC

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Here’s how management at Burrito Concepts LLC dealt with a shaky economy: They opted out.

“We just decided we don’t care about the economy. We are going to overcome it, period,” says Randy Allen, co-owner of Burrito Concepts, which operates 12 Qdoba Mexican Grill franchises.

Ignoring the economy might be easier said than done for some industries, but Qdoba seems to be in the right place at the right time.

Restaurant industry tracker Technomic’s 2011 Top 100 Fast-Casual Chain Restaurant report showed that the fast-casual sector outpaced the restaurant industry as a whole in 2010, with chains growing 6 percent to $18.9 billion. That report also found that the Mexican menu category overtook bakery café/bagel restaurants for the most-prevalent type of fast-casual restaurant.

Burrito Concepts, owned by Allen, Wayne Morelock and Kenny Ross, was formed in 2003 and opened its first Qdoba in 2004. It operates under the umbrella of Morelock-Ross Cos. and reported 2011 revenues of $10.1 million, up 22 percent from 2010.

The company is slated to launch its 13th Qdoba location this fall at the southwest corner of East Walnut Street and South Kimbrough Avenue. That site is strategically located near Missouri State University and downtown, an area the company had been scouting for five years, Allen says.

“If you look at Springfield, we’re already well-situated in the appropriate areas in the south, but we don’t have anything near Missouri State students and downtown,” Allen says. “We think it’s perfect.”

The company’s efforts to build brand awareness – and get its food in front of potential customers – include giving back in the communities it serves.

In Tulsa, Okla., where there are five Qdoba stores, Burrito Concepts provides free food to 600 people at the annual Brainiac Ball fundraiser for the nonprofit Family & Children’s Services.

In Springfield, the company donates food to the annual Bass Pro Shops Outdoor Fitness Festivals and has fed 700 people participating in efforts to aid the CoxHealth Foundation. And in Joplin, where Burrito Concepts opened its 12th restaurant last fall, the company worked to help the community recover.

“That’s the easiest way to build our business – get involved in the community. It works,” says Laura Newman-Ledford, director of marketing, sales and catering for the company.
Qdoba corporate thinks so, too. Burrito Concepts won the Qdoba Cares Award for community outreach in 2010 and 2011 – out of 600 locations.

Social media also plays a big part in driving sales, says Controller Chris Gruhlke.

After two years, those efforts, which include Facebook and Twitter in four markets, have proven an effective way to build customer loyalty, he says. The company’s Facebook Friday promotion allows customers with Qdoba loyalty cards to take advantage of special offers on Friday when they mention Facebook Friday during ordering, according to GoodwillAndGuacamole.com.

“It just shows the power of social media. If you provide the offers and you have the loyal fans, it translates into transactions,” Allen adds.

The company isn’t done creating its footprint, either, with a 14th store slated for Tulsa and scouting under way for Branson locations. Allen expects 16 Qdoba restaurants by the end of 2013.

Beyond that, possibilities may include an entirely new restaurant idea that Burrito Concepts would franchise.

“That would be a lot of fun,” Allen says. “I’m excited about that.”

Click here for the complete 2012 Dynamic Dozen overview.[[In-content Ad]]

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