February 6, 2014
After acquiring Salsarita's in 2011, Phil Friedman is stepping up as its CEO to launch major expansion efforts, according to a company press release. Friedman, who was behind the planning and execution of growth at McAlister's Deli and Panda Express, among other national brands, hopes his decades of experience in the industry will help turn Salsarita's into a household name.
"This was the right time for me to take a more active role," said Friedman. "Salsarita's is still a small business, which puts us in an excellent position to refine our strengths and jettison our weaknesses. After great takeover success, we were trying to do too much too fast; the goal now is to do less overall, but to do it better. I see great potential in this concept and look forward to implementing the changes needed for substantial growth in 2014."
Those changes include new menu items and a new restaurant design with increased seating and kitchen efficiency, with more exhibition cooking space. The chain is also implementing a Z-line system instead of a straight counter for better customer experience, and working out an order-in and take-out section,so customers can order food online and pick it up, Friedman said.
"We're also working on a more sophisticated point-of-service system that will be in every location by the end of 2014," he said.
The new prototype will be on display first at a company-owned restaurant in Charlotte, N.C., and then at the first new prototype franchised restaurant which will open in Southaven, Miss., in mid-2014.
Friedman is confident that this year is the right time for Salsarita's to pursue such an aggressive growth plan. He sees the fast casual segment of the food industry continuing to flourish, and additional opportunity in the fast casual Mexican food category in particular. Much of the continued fast casual growth, he said, is due to the alternatives it provides to entrepreneurs.
"Costs have become intense in the restaurant industry, especially the cost of transportation, distribution, commodities and labor," he said. "Fast casual continues to grow because it is a model that allows us, as owners, to manage labor costs while still being an experience customers understand and appreciate."
Friedman admitted that 2013 was a hard year for Salsarita's but notes that was primarily due to the need for internal evaluation of systems, buildings and menus and the subsequent effort to refine and redefine them.
"The most important element for success with any concept is to have your fundamentals right," he said. "Every concept may have different pressure points, but overall if you've got great fundamentals in place then you will grow."
He pointed out that much of the evaluation process was confined to the second half of the year, and that the prior 18 months saw the company achieve an initial turnaround with excellent franchised average unit growth.
"We are at the beginning of Salsarita's growth and Salsarita's story," he said.
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