But despite their devoted following, the big burritos proved limiting when Anderson considered growth beyond college towns. In 1998 he decided it was time for his brand to grow up, and he began a conversion to upscale fast-casual restaurants, entering the emerging fresh-Mex category. He expanded into suburbs and picked up new devotees: women and children.

“In 1992 we really had to educate people on what we were doing—this idea that we were going to focus on burritos with all kinds of fillings,” Anderson says. “Now it’s a lot easier, there’s no need for explaining; Fresh-Mex is everywhere.”

The experience gained while growing slowly and adapting to customer tastes makes the brand stronger than many fast-growing Fresh-Mex startups, Anderson says. “Not only are we more tested, but we developed in the Midwest, where there have been a lot of high-profile failures in this segment. There’s less density and less exposure to new foods. You really have to fine-tune and be efficient. We’ve done that.”

Panchero’s truly focuses on the “fresh” in Fresh-Mex, with no microwaves, fryers, or freezers in the stores. Meats are marinated and trimmed in-house, and the guacamole is made fresh daily. “Even next to the best of the pre-mades, you can really taste the difference in our guacamole,” Anderson says.

More significant to the brand than the fresh meats, vegetables, and guacamole are the signature tortillas, hence the slogan, “It’s all about the tortillas.”

“We make the dough in our stores and bring out dough balls on the line,” Anderson says. “As the customer orders, we press out their tortillas in front of them. Most other fresh-Mex restaurants steam their tortillas and wrap them in foil to hold them together. We don’t need foil; ours are naturally soft, stretchy, and chewy.”

Burritos are the most popular menu item, but the quesadillas are a close second. “Making quesadillas with fresh tortillas, more so than the burritos, really sets us apart on flavor,” Anderson says. Panchero’s offers numerous limited-time quesadilla offerings, the most recent be-ing a portabella mushroom quesadilla. Other menu items include fajitas, tacos, and salads served in fresh tortilla bowls. The average check is $7.

Panchero’s stores have a warm, industrial look. Exposed ductwork, track lighting, and metal accents are softened with warm tones, colorful tile, and padded booths.

The chain’s aggressive growth began two years ago. There are 32 stores in seven states, primarily in the Midwest, from Colorado to Michigan. The first Florida store recently opened, and there are plans for additional stores there and soon in Illinois and South Dakota. “We are looking for multiunit franchise developers and trying to get more exposure out west and in the East,” Anderson says. He plans to have 45–50 stores open by the end of 2006 and 70–75 open by the end of 2007.

“We’re a good deal,” Anderson says. Recent franchises have opened for $310,000, including all expenses from franchise fees to working capital to equipment and training.

The typical store is 2,400 square feet and an end-cap unit. “We look for upscale suburban areas with a mix of daytime office traffic and evening retail,” Anderson says. The ratio of lunch to dinner sales for most stores is 60–40 percent.

Anderson is confident that his truly fresh Mexican concept will compete well against larger, faster-growing chains. With 14 years of steady growth behind him, he feels he’s on the cusp of greater success. “We didn’t start somewhere where success was easy. We’re very concerned with single-unit economics and are committed to making every franchise work.”

Today, Pappas operators seven Louis Pappas Market Cafés in Tampa, Florida. He plans to grow to 25 owner-operated stores in the next three to four years. Franchising is expected to begin in the next 18 months.

“I have a passion for cooking,” says Pappas, who is named for his grandfather, an immigrant who arrived in the U.S. from Sparta, Greece, in 1904. “I learned everything about cooking from my dad and my own experimentation. I get a lot of pleasure out of creating Greek and Mediterranean-inspired specials for all the restaurants.”

Pappas takes pride in his family’s foodservice traditions and works to maintain the 80-year-old reputation for quality in his new concept. He launched the Market Café in 2002, shortly after selling the Louis Pappas Riverside Restaurant. He and his wife, Nancy, had become sole owners of the Riverside restaurant in 1997.

“I had a burning desire to take what made us successful in the larger restaurant and use it in multiple units on a smaller scale to reach more people,” Pappas says. “Tastes were changing—people were looking for upscale dining in a quicker format and lighter food options.”

If the lines out the door are an indication, the Louis Pappas Market Café is as popular as the family restaurant ever was. The difference is that the café is able to serve 275 to 300 people a day from each location. Pappas still manages from his favorite perch, the kitchen, thanks to a regional commissary that serves all the restaurants. “The meats are roasted here; the soups and sauces are made here. This way I still have a handle on all the food in the restaurants,” he says.

Pappas credits his partner Gordon Yates, who has multi-unit experience, with managing operations so he can stay in the kitchen. Pappas is now developing a new commissary to serve franchisees outside of Florida.

“And, you might ask, ‘How is franchisor Louie going to be able to cook his specials?’ Well, there will be a database of ingredients and instructions on how to prepare them,” Pappas says. The recipes will still be direct from Louis Pappas himself.

Pappas published a cookbook, titled Louis Pappas New Generation Greek Cuisine, in 2002. In it, he detailed some old family favorites but focused on his own recipes—lighter versions of traditional recipes and new creations using Greek staples and herbs. Many of the recipes in the cookbook are served in his restaurants.

While Pappas serves more than Greek fare, the most popular menu items are in that category. The top-sellers are the Louis Pappas Famous Greek Salads, created by his grandfather and include potato. Other favorites include spanakopitas, spinach-filled pastries; pastitso, a Greek lasagna; and gyros and chicken souvlaki sandwiches.

Pappas describes the atmosphere as nouveau Greek, with Mediterranean colors, mosaic tile, a family tree of copper vines, and displays of family photos and historical notes. “We’re giving the stores a contemporary, island feel,” Pappas says. “But really it doesn’t matter how much you spend on the stores; if the food’s not good, no one’s coming back.”

Clearly the food is good

Sixty percent of the menu items at Louis Pappas Market Café are under $7. The average lunch ticket is $7.50 and typically includes a sandwich and small salad combo. The average check is $9.50 at dinner, when entrée orders are more popular. Sixty-five percent of the business takes place at lunch, with dinner and catering increasingly cutting into that share. Customers get a lot of food for their money, a carryover from the old family restaurant. The catering menu’s Greek Salad for $20, can easily serve 50 people.

With tables constantly full and lines out the door, Pappas recently began downsizing his kitchens to increase seating from about 45 to 85 seats per store. “I expect that to generate another 20 percent in revenue out of every store,” he says.

Customer interest in international flavors is a continuing trend, and with little competition in the Greek category, the Louis Pappas name, long famous in Florida, is poised to become a national brand.