QDOBA fires up big growth plans

QDOBA, the Mexican food fast-casual brand, announced that new development agreements are expected to result in a surge of location openings.

A pair of new agreements call for the opening of 50 new locations in Atlanta, Georgia, and Nashville, Tennessee. In Atlanta, a former McDonald’s operator has committed to opening 30 QDOBA locations while a former Zaxby’s operator has plans for 20 units in Nashville.

QDOBA and its franchisees currently operate more than 865 locations. Other growth plans revealed by the brand include more than doubling its footprint to nearly 2,000 locations over the next 8 years, opening 100 restaurants annually, and expanding the share of franchised units to 85%. Currently, more than 85 franchisees operate about 80% of QDOBA’s locations.

“We’re thrilled to partner with proven franchise operators who share our people-first culture, exceptional standards for guest service and commitment to disciplined growth,” said Jeremy Vitaro, chief development officer of QDOBA. “Together, we’re bringing QDOBA’s bold flavors to more communities across the U.S.”

Recent moves at QDOBA saw 7 Star Eats, an affiliate of B Wild Investments, LLC, acquire 22 restaurants in the Pacific Northwest, growing its footprint to 42 restaurants across Alaska, Colorado, Idaho, Montana, and Washington. The transaction elevates 7 Star Eats to one of QDOBA’s largest franchise partners.

Additionally, B Wild Investments announced a large development commitment across Colorado, Utah, Washington, Nevada, and New Mexico. Originally announced as a 50-unit expansion move, B Wild’s plan has since been increased to the development of 63 locations.

“Mexican fast casual is one of the most attractive segments in restaurants, and QDOBA has the brand, menu, and unit economics to win,” said Barry Dubin, founder and CEO of B Wild Investments. “Just as important, the QDOBA leadership team has been an exceptional partner — aligned, commercial, and genuinely invested in advancing the brand in partnership with franchisees. That partnership approach is why we’re committed to growing meaningfully alongside QDOBA.”

B Wild Investments, a private investment firm, is also the force behind the creation of US Laundry, LLC, the largest Tide Laundromat system in the United States.

In May, QDOBA reported the closing of a $435 million whole business securitization, consisting of $360 million of Senior Notes and a $75 million Variable Funding Note, through Qdoba Funding LLC.

Looking ahead, QDOBA said its key expansion markets include California, Florida, Georgia, Tennessee, and Texas. The brand operates in 46 states, Canada, Puerto Rico, Japan, and South Korea. The brand said it’s also expanding across non-traditional venues with built-in demand, including airports, universities, and military bases. Menu items include customizable burritos, bowls, tacos, quesadillas, nachos, and salads.