Dive Brief:

• Qdoba has signed development commitments for at least 33 new locations across the country, bringing its total pipeline to over 500 units, the company said Thursday in a press release.
• The chain is also growing its non-traditional pipeline with locations in development at airports, universities and military bases. 
• With 800 units already open, the new commitments bring it closer to its goal of having 1,500 restaurants by 2033.

Dive Insight:

While its largest competitor, Chipotle, functions on a company-owned model, Qdoba continues to benefit from its franchising model, which allows operators to buy into the popular Mexican fast casual segment and shoulder some of the cost of development. 

Qdoba has aggressively worked to attract multi-unit franchisees, previously signing 10 franchising deals covering 77 stores at the start of the year. Last July, Qdoba began offering a $100,000 cash incentive to franchisees for opening new restaurants by September 2026. The incentive is for both current franchisees who add new units to their development plans and new franchisees who commit to multiple units. 

With units that take 12 to 15 months to compete, the chain is aiming to reach 100 net openings per year within the next few years. The chain has been working on remodels, particularly of its company-owned locations. Qdoba is experimenting with new store formats, and recently opened its first freestanding locations in Arizona. These locations have elements like an open grill, two production lines to accommodate additional demand and an interior space of about 2,000 square feet. Legacy stores average roughly 2,500 square feet, in comparison. 

Qdoba continues to look for multi-unit franchisees, especially those willing to develop in key markets like Atlanta; Orlando, Florida; Tampa, Florida and Nashville, Tennessee, or in non-traditional spaces. Gideon Toal Management Services just opened a non-traditional location in Terminal A at the Syracuse Hancock International Airport in New York, for example. The chain has additional commitments to open locations at Colorado State University-Pueblo and Rutgers University. 

In addition to its franchising momentum, the company continued to grow comparable sales, which were up 7.7% last year and 6.1% in 2023, according to the press release.