Qdoba to open new prototype unitsQdoba to open new prototype units

Qdoba Mexican Grill has a new “in your face” prototype design that aims to reflect the bold flavors of its food, officials with parent Jack in the Box Inc. said Tuesday.

At the Bank of America Merrill Lynch Consumer & Retail Conference in New York, officials with San Diego-based Jack in the Box Inc. outlined the latest step in Qdoba’s ongoing transformation from a brand that grew same-store sales from negative 1.3 percent in the second quarter of 2013 to 14-percent growth in the first quarter of 2015.

Two restaurants in the new design are under construction and will open this spring, although Jack in the Box Inc. chairman and CEO Lenny Comma did not indicate where they are located.

“We wanted essentially to marry what we’re doing with food and bold flavors with the persona of the brand and the image of the facility,” Comma said.

Comma described the new design as “in your face,” with an aggressive personality that “brings to life this idea of individualism.”

Aside from nontraditional locations, all new restaurants will sport the new design, though the company will continue to test various aspects in different markets to see what works best going forward.

The company plans to open 50 to 60 new Qdoba restaurants in fiscal 2015, about half of which will be company owned.

Comma characterized Qdoba’s recent performance as a turnaround story. Over the past two years, the company closed 62 underperforming locations and hired a new brand president, Tim Casey, formerly CEO of Famous Brands International. Consumer research was conducted to get a better picture of where Qdoba should go, and consultants were brought in to rework the brand, which has more than 600 units.

The goal has been to step out from under the shadow of other brands, Comma said without mentioning names, but likely including fast-casual category leader Chipotle Mexican Grill.

“We were caught in a sea of sameness or in the copycat brand space,” Comma said. “We really needed to establish ourselves as a standalone brand with its own personality going forward.”

Last year, the chain shifted to a one-price-by-protein strategy that eliminated surcharges for ingredients like guacamole and queso sauce. That move raised average check while giving consumers the impression of getting a better value.

The company has also been working on bringing bolder flavors to the menu, as well as new platforms, like the recently introduced Smothered Burrito line, a “knife and fork” offering designed to help build dinner sales, Comma said.

Qdoba is still early in the turnaround process, with more menu innovation to come. “This is very beginning stage of where we think we can go,” Comma said.

Qdoba's new prototype interior design. Photo courtesy of Jack in the Box

Contact Lisa Jennings at [email protected].
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