SEATTLE Taco Del Mar founder and CEO James Schmidt assumed the duties of president of the 262-unit fast-casual chain Thursday upon the sudden departure of David Huether, who also was chief operating officer. Kevin Hansen, formerly franchise development vice president, took over as COO.
Company officials confirmed Huether's departure but deferred comment. In a statement released on Friday, the franchisor noted that Huether would serve as a consultant to the company and remains a stakeholder.
Franchisees have complained in recent months about rising food costs, distribution problems, lack of support and weakening sales and profitability. Thirty-five branches of the chain closed in the year ended Sept. 30.
In a memo sent to franchisees earlier this month, Huether, who had been president since 2004, acknowledged their concerns and outlined plans to boost profits, including a shift to smaller portions and possible value pricing.
Schmidt confirmed that the 15-year-old chain would add a value menu, as well as new support programs for franchisees.
"David has done a tremendous job for Taco Del Mar; his organizational focus enabled the company to refine the brand and grow steadily across North America," he said. "Moving forward with Kevin and myself at the helm, we are confident in our continued success with several new initiatives underway."
Based here, Taco Del Mar currently operates in 25 states.
