Before COVID arrived, Salsarita’s CEO Phil Friedman—who bought the chain in 2011—told himself he wanted to be a better franchisor.
To him, that meant being current in technology, having a quality mobile app, and building a frictionless online ordering experience. For example, the chain launched its first app in March 2019, powered by Olo’s online ordering platform.
Salsarita’s was making all of that work when the pandemic hit. Like many others, the fast casual’s focus accelerated to “two years of development in two months,” Friedman says.
“We went into it trying to get stronger … We knew that we would present ourselves to the franchise market as bigger, better, stronger, but most important to me was to be a great support to our franchisees,” Friedman says. “And to do that, we had to get really much better with technology. So we’ve done that.”
Five years of work positioned the 65-unit Salsarita’s to launch an aggressive multi-unit growth plan.
The comeback touched different areas. The fast casual became heavily involved with PAR Technology, unifying its tech stack through the firm’s suite of products, including a customer loyalty and marketing system, POS, back-office efficiency, and a payment processor.
Additionally, the chain forged a partnership with Apple to allow guests to enroll in the loyalty program with one click when using ApplePay. It also uses AI to help with recruiting and hiring and integrated back-office reporting with its POS system for better insights on food cost management, labor optimization, and inventory control.
Salsarita’s redesigned app, launched in June 2023, led to a 7 percent increase in app-based orders. Loyalty members, which mix around 25 percent, visit 15 percent more frequently and spend 12 percent more compared to nonmembers.
“We’re able to work with our current franchisees, but more importantly, our prospective franchisees, with a sense of confidence that we can do—and I can do—a great job for you, and that’s what I want to be able to tell people,” Friedman says. “And that’s why we decided, OK, now it’s fine to go back out to the market. I really took a hiatus so that we could be a contemporary—meaning contemporary skills—franchisor.”
Marketing has also evolved, shifting toward digital and social media. Friedman formed a younger, tech-savvy team to handle targeted campaigns and ensure new franchise locations launch with an established digital presence. When a new franchise opens, the chain simply flips a switch on its geo-targeted marketing, and everything is in place.
Salsarita’s has also taken a more analytical approach to site selection. The company uses advanced data analytics, like cell phone tracking and consumer behavior insights, to accurately identify prime franchise locations. Friedman says the brand can now pinpoint where ideal guests shop, dine, and spend time, which gives franchisees confidence in choosing the right locations.
“It’s using big data through our technology suppliers to really be a very strong, specific franchisor support for current and prospective franchisees,” Friedman says. “And also I realized that as the franchise community gets more and more sophisticated, you have bigger groups. They’re technology-oriented and we needed to be able to talk the technology with prospects and we’re doing that.”
With Olo’s help, catering mixes 21 percent and increases margins by 2 to 3 percent thanks to batch cooking and efficient labor use. It’s so significant that Friedman calls it Salsarita’s third daypart, after lunch and dinner.
According to a case study from Olo, catering mixes as much as 60 percent at some locations. Also, Salsarita’s has seen a 15x lift in average order value for catering versus mealtime orders, a 22 percent rise in catering same-store sales in 2024 year-over-year, and a 10 percent rise in online catering sales year-over-year. The brand supplies catering to all gatherings, from weddings to traditional offices.
“It really works. It really is a little bit of magic sales,” Friedman says.
Salsarita’s is based primarily in the Southeast, with its largest markets coming in North Carolina, South Carolina, Tennessee, and other nearby states. Expansion will focus on the east of the Mississippi; this aligns with distribution partner Gordon Food Service, which supports logistics across six warehouses. The brand is active in about a dozen states, with strong performance in markets like Buffalo and Detroit, and aims to re-enter areas like Raleigh, North Carolina.
Friedman prefers five-unit development deals with an option to expand to 10 over time. He encourages franchisees to build within their territory rather than spreading too thin.
The CEO values long-term, development-oriented partners and operates on a five-year planning cycle, requiring the first unit to open within 12 to 18 months. However, he doesn’t always push hard on rigid timelines.
“I’m not overly aggressive in the development schedules as long as I know they’re trying,” Friedman says. ” … I won’t penalize someone or take territory away if they’re trying to develop. They may be behind their schedule, but the effort is really the most important thing because it takes a lot to do real estate.”
Salsarita’s has found success with 2,200 to 2,300 square foot spaces with around 50 seats and nearly 60 percent off-premises sales. This has helped offset rising real estate and buildout costs.
In 2019, the fast casual launched a drive-thru prototype that’s gained momentum over the years. The brand believes up to 80 percent of new developments will feature a drive-thru lane. The menu is limited to Salsarita’s top sellers and 80 percent of orders are taken “as is” without changes. This helps the fast casual complete transactions in 60 to 90 seconds.
There are six drive-thru locations, three of which were conversions. One added a drive-thru to an existing building, and that led to a 20 percent increase in sales and a 30 percent drive-thru mix. In Southfield, Michigan, a franchisee converted a former 1,800-square-foot Starbucks into a Salsarita’s, with drive-thru averaging 30-40 percent of sales. That’s in addition to supporting catering and limited dine-in. Another standout is Shepherdsville, Kentucky, where an operator built a new 2,300-square-foot drive-thru restaurant that’s producing strong weekly revenue.
Drive-thru isn’t required, but it is a flexible option that can be adapted based on the franchisee’s preference. Friedman used the example of a top franchisee in Chattanooga, Tennessee, who chooses not to use the channel but still achieves high volumes.
Friedman wants franchisees with what he calls “quick casual” experience and those familiar with managing multiple locations. He thinks Salsarita’s serves as an ideal second concept for a franchisee looking to further establish themselves in the market and add on to their operating team.
“I was always successful with successful business people who want to get involved with us, but they have to show us and operate them,” Friedman says. “They have to bring with them an experienced restaurant operator, hopefully QSR. I’m open to the right people who really care about guests and respect training. That they’ll come to training, they’ll get their people trained and that they really respect that I have to invest in management and training to open successfully.”
