By Nicole Di Tomasso
As one of the largest and fastest growing Tex-Mex food franchise in Canada, barBURRITO has captured the hearts (and appetites) of many. Since its inception in 2005 in Toronto, the quick-service concept has maintained consistency in food quality and customer experience, and its rapid expansion across the country has been a testament to its popularity.
Building off its record-breaking year in 2022 with 75 new units, the company opened 64 new units in 2023, finishing the year with a total of 293 stores from coast-to-coast.
“As a Toronto-based company, we have the strongest presence and market penetration in Ontario,” says Jeff Young, Chief Development Officer, barBURRITO. “Looking to the future, the greatest growth [opportunities will be] in Western Canada, specifically British Columbia, as well as in Quebec, where we only have five stores in the entire province.”
The units range between 1,000 and 1,500 sq. ft. and seat up to 30 customers. While there’s currently only one store equipped with a drive-thru, “this amenity will be available at more locations in the future as we develop our non-traditional model,” says Young.
As the name implies, barBURRITO offers customizable burritos and bowls, “which represent about 70 per cent of its sales mix,” says Young, as well as other Mexican food items, such as tacos, quesadillas and churros.
“Last year, we introduced a line of chef-inspired authentic street tacos as a limited-time offer,” says Young. “More recently, we launched a Jarrito-infused barbacoa, which has become a permanent menu item to replace steak.”
In March 2024, Young says a breaded pollock item will be added to barBURRITO’s menu, complemented by a new lime-crema sauce.
Recognizing the shift in consumer behaviour towards digital platforms, barBURRITO has a “proprietary [mobile] app fully integrated with its POS system and allows guests to conveniently place orders for pickup and delivery,” says Young, adding that app users can collect points, earn rewards, order ahead, unlock personalized offers and enjoy a free churro on their birthday.
To enhance its operational standards, barBURRITO launched Nudge in 2023. “Nudge is a digital platform focused on providing our franchisees the knowledge, tools and resources they need to execute consistently through communications and guided-task execution,” says Young. The company also uses Zenput, a digital platform for conducting store audits and ongoing operational assessments.
Another enhancement in 2023 with regard to barBURRITO’s equipment package was the introduction of “a cloud-based combination to ensure precise cooking, improve consistency, maintain freshness, reduce labour and minimize wastage,” says Young. “This technology will be included in all of our stores moving forward and we’re in the process of integrating it into our existing network.”
This year, barBURRITO will be implementing an online curriculum as part of its initial training program to further enhance franchisee success.
“barBURRITO is recognized as a dynamic franchise and, as a result, we get a lot of natural interest in the brand,” says Young. “About 50 per cent of our network is made up of franchisees who own more than one location. Additionally, there’s strong interest from owners of other franchise concepts looking to expand and diversify their business portfolio, as well as new entrepreneurs.”
In terms of franchise-recruitment initiatives, barBURRITO actively promotes its franchise opportunities on social media in untapped and tertiary markets. Additionally, the company hosts a Franchise Discovery Webinar twice a week, which Young says is generally well attended.
“I take attendees on a journey that covers the history of the brand and all areas of franchise support services such as site selection, design and construction, initial and on-going training, marketing initiatives, supply chain, the investment and steps to become a barBURRITO franchisee,” says Young. “At the end of the [webinar], we have an open forum for Q&A.”
When it comes to selecting the right franchisee, Young says the company looks for someone “who has strong leadership skills and is passionate about hospitality by delighting guests with exceptional customers experiences. They must have a growth-driven mindset, be a team player and follow brand standards. Finally, they must have the financial resources to open and operate the business.”
barBURRITO’s initial franchise fee is $25,000, with a total investment estimated between $390,000 and $420,000. “To qualify for bank financing, a franchisee will need $140,000 to $150,000 unencumbered equity, in addition to a good credit rating and net worth of a minimum of $250,000. barBURRITO has a franchise-financing program with select financial institutions, which offers preferred interest rates and makes the loan application process quicker and easier.”
Once a franchise agreement and lease are signed, Young says it takes approximately four to six months from that point in time to opening.
“What we’re most proud of is the organic growth we’re experiencing with existing franchise partners who are expanding with multiple locations,” says Young. “This is a clear reflection that our franchisees are happy and successful and their re-investment into the brand is the biggest compliment and the strongest validator that any franchisor could have.”
