CYPRESS Calif. Franchisees in Montana are planning to open the first co-branded unit of Baja Fresh Mexican Grill with Canyons Burger Company in May 2010, officials said Thursday.
Cypress, Calif.-based Baja Fresh acquired the Atlanta-based premium burger concept in September with plans to franchise the brand.
Two Canyons Burger units are open in the Atlanta area, and another 12 are in development, said Nick Binnings, one of Canyons’ founders. Baja Fresh operates or franchises 255 restaurants in 28 states.
In what is the first franchise agreement since the acquisition, Tim and Heidi Redelsperger, founders of Snappy Lube & Snappy Auto Spa in California and Arizona, have acquired the rights to Montana for Canyons and Baja Fresh. They plan to open two dual-brand units.
The first is scheduled to open in Bozeman, Mont., in a 3,000- to 5,000-square-foot space that will feature separate service lines for each brand and a shared dining room — though guests can order menu items from either brand in both lines.
The company is not the first to attempt dual branding of Mexican and burger concepts.
CKE Restaurants Inc., based in Carpinteria, Calif., operates or franchises 474 co-branded units combining its Carl’s Jr. brand with a Mexican quick-service concept called Green Burrito. Sister brand Hardee’s has 122 co-branded units with a similar Red Burrito concept. A company spokeswoman said CKE would continue to pursue the dual-branding strategy.
Canyons co-founder Binnings said dual branding would allow franchisees to pair two premium fast-casual brands in one market for a smaller build-out cost. “It probably reduces costs by about 20 to 30 percent,” he said.
Binnings said the co-branding opportunity was one of the reasons Baja Fresh was interested in Canyons.
“Baja Fresh had a strong interest in that and recognized the growth potential,” he said.
Though individual Canyons franchise units are also in the works, Binnings said, “You’ll see a lot more of the co-branded units in the pipeline first.”
Canyons Burger was founded last year by Binnings and Sonny Crumpton, both former executives with multi-concept franchisor Raving Brands. Crumpton’s father, Mark Crumpton, is also an investor-founder.
Binnings also created and later sold the four-unit Hero’s All American Grill burger concept in New Orleans.'
Contact Lisa Jennings at [email protected].