Change is in store for Thousand Oaks-based restaurant chain Baja Fresh. In October, the company announced plans for a strategic expansion plan, which would have it grow to different states and different countries, alike. As part of the plan, the company will roll out a smaller new model restaurant that will allow it to enter into new markets such as airports, colleges and universities. “With our new restaurant designs encompassing a smaller footprint, we are now able to deliver our product to the customer with the freshness and quality they expect without paying for excess space which is not being fully utilized,” President James Walker stated in October. Walker has been president of Baja Fresh since November 2006 when Wendy’s sold it to a private investor consortium for $31 million. Launched in Newbury Park in 1990 by Jim and Linda Magglos, Baja Fresh became a subsidiary of Wendy’s International in 2002 for a reported purchase price of $275 million. The company is categorized as fast-casual, meaning it has the attributes of both a fast-food restaurant and a sit-down restaurant. Accordingly, the company abides by a philosophy it calls “Live Fresh,” which has resulted in it eschewing the use of microwaves, can openers, freezers, lard and M.S.G. in its restaurants, with self-serve salsa bars being a mainstay. This year, Baja Fresh was named Restaurants & Institutions 2007 Consumers’ Choice in Chains. Moreover, television and radio personality Ryan Seacrest recently began doing advertisements for the restaurant on KIIS FM in Los Angeles. The Business Journal talked to Baja Fresh President Walker about the impetus for the changes the chain is making and what the future holds as well. Question: Baja Fresh has recently made several changes. What’s responsible for them? Answer: Most of these changes are very intuitive. I don’t know if there’s any rocket science or stroke of genius behind it. It’s kind of Business 101. If we can build a store that costs less money, those stores will show a run on the investment much quicker. Q: You’ve recently partnered with travel venue concession planner HMSHost (formerly Host Marriott Services). Based on this relationship, Baja Fresh is now the company’s preferred fast casual Mexican food chain and is available as part of HMSHost’s airport and motorway operations across the country ( with initial outlets slated for Los Angeles International Airport and the Pennsylvania Turnpike). What are the goals for these first two outlets? A: Baja (will) help fill a void that HMSHost has in its airport venues with a high quality, best in class, fresh Mexican offering. I think it will help our brand exposure, especially outside of California. I think something like our relationship with HMSHost in some of these locations will certainly build brand awareness in some of these new markets. Q: You’re focusing on expanding in this state, as well as Nevada, Washington D.C., Missouri, Illinois, Georgia and Florida. Why these markets? A: It really depends. The short answer probably is we’re looking at some new markets where Baja currently is not as well known, some markets where Baja Fresh would be a new entity as well as where we’re already known. I think we tend to do very well where there’s knowledge of Mexican food at a higher level, at the level of Baja Fresh where people are looking for a quality Mexican product, where there’s a more educated consumer. Q: You also hope to expand internationally,in which countries exactly? A: We’re looking really at expansion in numerous countries. We’re probably in active negotiations with probably about 20 different countries. We’re certainly looking to the East and to the West. Q: You have a new model restaurant that encompasses just 600 sq. feet, and you’ve downsized the restaurant design to approximately 1800 sq. feet. Will service be any different now? A: These two new footprint buildings assist us in finding better suitable sites and venue opportunities, as well as allow a faster speed of service. I think the main impact of the new prototype is faster service. Q: Discuss how allowing franchisees to have the option to open a single unit or multi-unit franchise locations will aid in the company’s growth. A: There’s different types of franchisees out there. There’s franchisees who are looking to do single stores and franchisees who are looking to do multiple stores. We’re really looking at taking it on a case-by-case basis by appealing to a broader audience. This strategy creates more opportunities in more markets for franchise development. Q: Why do you think Baja Fresh was named R & I;’s 2007 Consumers’ Choice in Chains? What is unique about the restaurant? A: Baja won the platinum award for R & I; Consumer Choice based on best in class Food Quality, Service, Cleanliness, and over all satisfaction. I think it’s our quality. There’s certainly a number of quick casual Mexican players, but no one really plays at the level we’re at. It’s very unique what Baja Fresh has,that food quality and product quality. Q: The restaurant has been categorized as “fast-casual.” What does this mean exactly? A: A higher level of food quality, and service then you’d find at a QSR (Quick Service Restaurant), with faster service and lower pricing then you would find in a Casual Theme Restaurant. Q: In addition to the expansion plan, is there anything else in the works for the company’s future? A: A continued focus on being the best in class in food quality, service, and convenience. We’ve got new menu items coming out. I would say we’ll have some out before the end of the year. Q: Are there any challenges to being headquartered in the greater Valley area? A: No. I think it’s probably a positive. Most of our employees enjoy working here. This area is a great area to live in. In some cases it might be easier to attract those high level employees who might not want to live in a Los Angeles area.
