Next in line of fast-growing Mexican chains and just outside the 50 is Qdoba Mexican Grill. With sales growth of 34 percent in 2006 on top of over 50 percent in 2005 and unit growth of 27 percent, there is little doubt Qdoba will break into the 50 next year.
Qdoba CEO Gary Beisler identifies the keys to its success as the growing popularity of Mexican food, an engaged base of franchisees, and a menu that offers a variety of options. Beisler is quick to point out that Qdoba is not authentic and not “a burrito place.” Unlike competitor Chipotle, Qdoba plans to develop its menu to meet customer’s needs.
“We’ll be able to sell you what modern Mexican is,” Beisler says.
Ultimately, though, Beisler believes it comes down to execution. As an operating company that maintains both a strong franchisee base and a mix of company stores, Qdoba is able to operate at a higher level than competitors. Moe’s Southwest Grill appears as a Contender for the first time this year, growing 40 percent in systemwide sales and 23 percent in units. Moe’s is exclusively franchised as opposed to company-owned Chipotle and company-franchise mixed Qdoba. With the recent sale of Moe’s to Focus Brands, expect Moe’s to gain a few spots in the 2007 QSR 50.
While fast-casual grows at a healthy pace, the snack segment of the QSR 50 made the most impressive gains. Among the five chains selling coffee, doughnuts, ice cream, and smoothies, systemwide sales grew nearly 16 percent in 2006 on top of 17 percent in 2005 and 23 percent in 2004. All but Baskin-Robbins grew sales at double-digit rates.
Starbucks continues to flex its muscle, moving up another spot in the ranks to number six. Systemwide sales grew at 21 percent and units at 16.5 percent. If the company grows even at a slightly slower pace in 2007, YUM! Brands could lose its only top-five spot with Taco Bell.
The 2007 QSR 50 sees its first appearance of a non-coffee beverage seller in the ranks. With sales growth of almost 18 percent and unit growth of 11 percent, Jamba Juice jumps from 52 to 47.
The juice bar was a narrowly defined concept when it appeared in the 1980s and 1990s but as more Americans have an interest in healthy, active lifestyles, juice beverages have taken off, says Jamba Juice CEO Paul Clayton, “The intersection of healthy, fun, on-the-go convenience is at the heart of what we do,” Clayton says.
Clayton says that Jamba Juice will have to evolve from being a smoothie bar in order to continue to meet consumer demands. The shift, he says, will be toward increased functionality and becoming a source of healthy value. Clayton points to blended teas, fortified waters, and juice and vegetable blends as potential areas of evolution. While beverages will remain as Jamba’s center-of-the-plate item, Clayton says the chain is also giving time and energy to food that will complement beverage offerings.