Growth Chains: CurritoGrowth Chains: Currito

By Christi Ravneberg

HEADQUARTERS: Hamilton, Ohio
MARKET SEGMENT: fast casual
NO. OF UNITS: 16
SYSTEMWIDE SALES: $16 million
METHOD OF GROWTH: franchising and company-store development
LEADERSHIP: Joe Lanni, co-founder and president of development; John Lanni, co-founder and chief operating officer
COMPETITORS: Chipotle, Qdoba and other fast-casual burrito brands
TARGET MARKETS: Cincinnati; Columbus, Ohio; Indianapolis; Lexington, Ky.
WEBSITE: www.currito.com

Chipotle Mexican Grill may be the undisputed king of the fast-casual burrito chains, but brothers Joe and John Lanni say their 16-unit Currito concept has what it takes to succeed in that space — even in the shadow of the burrito behemoth.


Currito, based in Hamilton, Ohio, has many similarities to Chipotle — open kitchens, minimalist decor, customizable meals — but its globally inspired menu sets it apart from the pack, said Joe Lanni, the chain’s co-founder and president of development.


In keeping with the tagline “Burritos Without Borders,” the menu goes beyond beans and rice to incorporate Asian, Mediterranean and American flavors. 


“We wanted to capitalize on the popularity [of burritos], but not be seen as just another me-too Chipotle-style place,” Joe Lanni said. “I think the American palate is expanding at a rate that hasn’t been seen before. People are really excited to try new things.


“[Chipotle] is the frame of reference,” he added. “But once they come in and look at our menu, they really appreciate the additional choices we have.”


Signature burritos include the Bangkok, made with Thai-style peanut sauce, Asian slaw, cucumbers and rice; the Mediterranean, with black-bean hummus, tomato, cucumber, feta and balsamic vinaigrette; and the Buffalo, with blue cheese dressing, hot sauce, celery and rice. 


Each can be served in a small or large burrito, or in a bowl. Guests have a choice of either chicken, steak or tofu, and burritos can be made with flour or whole-wheat tortillas. About 60 percent of guests choose from the international signature burritos, while the remaining 40 percent build their own, Joe Lanni said.


The menu also includes salads and smoothies to cater to a broader customer base and bring in customers at off-peak hours. The average per-person check is $7.50.


The concept was born in 2005 after the Lannis purchased a Boston-based chain called The Wrap and rebranded it. Currito, which generates annual systemwide sales of $16 million, now has locations in seven Midwestern and Northeastern states, and is set to open its 17th store this year in downtown Cincinnati. 


Joe Lanni said they plan to open five units in 2012 and continue growing at a rate of five to 10 each year until there are about 50 units. Two new units each year will be company owned and focused on the Cincinnati market, while the rest will be franchised. Target markets include Cincinnati, Indianapolis and Lexington, Ky. 


The typical Currito unit encompasses about 2,000 square feet and has a modern, industrial feel that includes communal tables, hard woods, exposed duct work and stained concrete. The chain also has several nontraditional locations in airports and on college campuses.


Co-founder and chief operating officer John Lanni said Currito is beginning to incorporate environmentally friendly materials, including bamboo wood and natural soy resin stain on the floors, as well as biodegradable corn-based utensils, which will roll out this year.


The average build-out cost for a franchisee is $400,000 to $450,000, and there is a one-time franchise fee of $25,000. Royalties are 6 percent of sales.


Darren Tristano, executive vice president of Chicago-based research firm Technomic Inc., said the massive success of Chipotle can benefit regional brands like Currito.


“You could argue, ‘Why would I want to compete with that?’” Tristano said. “But [Chipotle has] raised demand for this product … similar to what we’ve seen in fried chicken and burgers, which are now staples in our everyday lives.”


Currito also may benefit from the growth of the fast-casual segment as a whole. The fast-casual market represented about $27 billion in sales in 2011, according to Technomic, and continues to grow.


“In terms of growth, it continues to exceed other segments,” Tristano said. “We expect that to continue for years to come.”


Currito may be well positioned to connect with Millennials who seek bold flavors and large portions, and who tend to respond to chains that demonstrate corporate responsibility, he added. 


John Lanni said customers are embracing the chain’s internationally inspired take on the Mexican staple.


“The burrito market has become so mature,” he said. “That’s a good thing for us. We’re continuing to see people coming in from [competitor chains]. They’ve been eating [traditional] burritos for
10 to 15 years, and they’re ready
for something new.” 


Contact Christi Ravneberg at [email protected].