AUA Private Equity Partners LLC has made an investment in Florida-based Tijuana Flats in a deal aimed at furthering the burrito chain’s expansion, AUA Equity announced on Monday.
Terms of the investment were not disclosed, but AUA Equity will place three members on the Tijuana Flats board in addition to a pair of real estate investors. AUA Equity has recapitalized the chain, and its founders will remain with the company and have equity in the deal along with existing company management.
“We’re very excited about the brand,” said Steven Flyer, partner at AUA Equity. “The two owners have done a phenomenal job growing the brand. They were looking for the right partner, who understood restaurants, and who understood the culture of what they built, to help them expand.”
Brian Wheeler opened the first Tijuana Flats in Winter Park, Fla., with a $20,000 loan from his father. Four years later he caught the eye of semi-retired restaurant executive Camp Fitch, who became a partner in the chain and its chairman. The Altamonte Springs, Fla.-based chain has since grown to 110 locations in Florida, Georgia, Indiana, the Carolinas, Pennsylvania and Virginia.
The chain is known for its edgy, irreverent attitude — its “manifesto” includes the phrase “Lighten up or leave.” Its menu currently includes burritos made with hemp tortillas, with the phrase, “Let us roll you a fat one.”
The chain also has a higher level of hospitality. Customers are greeted when they walk in and food is brought to the table. “It has an incredible culture,” Flyer said. “It has a very loyal following. Its employees are highly engaged.”
The chain also has a “Just in Queso Foundation” that provides funds for charitable causes in its communities. The foundation has contributed more than $2.1 million to support charities benefiting children and the military.
The engagement with the community is an important element of the concept, Flyer said. “It’s something we feel is very important,” he said. “As much as you’re investing in a concept, you’re aligned with them.”
Talks with AUA Equity about making a strategic investment intensified this year, Flyer said. AUA believes it can help the brand maintain its integrity even as it expands its reach further in the Southeast and up north.
“The goal really is to continue to expand what has mostly been a Florida brand,” Flyer said.
As for AUA Equity, the deal with Tijuana Flats is “right down our fairway,” Flyer said. AUA Equity is an operationally focused private equity firm that targets Hispanic-oriented companies or businesses influenced by the Hispanic ethnicity — or, Flyer said, “mainstream brands that should be targeting Hispanic” consumers.
The firm is led by Managing Partner Andy Unanue, former chief operating officer at Hispanic foodmaker Goya Foods Inc. It also includes former Trimaran Capital Partners veterans Flyer and David Benyaminy.
This is the group’s first restaurant deal, though Unanue had previously invested in franchise operator Trufoods, LLC, and Flyer himself is a former director at El Pollo Loco, Inc.
Current management at Tijuana Flats will remain in place. Brad Kaemmer will continue to be the chain’s CEO. Wheeler will remain on the chain’s board of directors, and Fitch will remain its chairman.
Unanue, Flyer and Kyce Chihi from AUA Equity will join the board, along with real estate veterans Barry Goff and Mike Wood.
“It’s been incredible watching the growth and the extraordinary loyalty among all of our guests throughout the years,” Wheeler said in a statement. “With AUA as a partner and our great management team in place, I look forward to the future and continued success of Tijuana Flats.”
Contact Jonathan Maze at [email protected].
Follow him on Twitter at @jonathanmaze
