Dive Brief:
- Cilantro Taco Grill, a Chicago-based fast casual restaurant with 17 company-owned units, plans to open its first franchised location outside of Chicagoland in April, the company said in a press release.
- The chain, which was founded in 2013, opened its first franchised location in a Chicago suburb in November, and has secured six agreements to develop 110 units. The biggest of these deals covers 100 units in Florida, with restaurant operators Alex and Max Dreevs.
- Cilantro Taco Grill is just one of many Mexican fast casual chains, including Qdoba, District Taco, Moe’s Southwest Grill and Burritobar, that are poised to take off with hundreds of units in development, as companies with franchised systems look to catch up to Chipotle.
Dive Insight:
Cilantro Taco Grill launched franchising less than two years ago with the help of Fransmart and the support of Armando Christian Perez, aka Pitbull.
“Together, they aim to grow the next generation of Mexican fast casual concepts to more than 1,000 units worldwide over the next 10 years,” the press release said.
The chain expects to open seven locations in 2025, with three in Texas and Florida and four in Illinois, according to the press release. The chain has also signed a franchising agreement for at least one store in California.
To prepare for expansion, the chain set up a commissary in Houston last year with U.S. Foods to ensure consistent food quality and a meat supply across its locations. In late 2024, it launched a new online ordering app with an integrated loyalty program. The app offers personalized promotions and exclusive deals based on customer preferences. The chain also offers catering and bottled house salsa for additional revenue streams.
The average gross sales for 13 Cilantro Taco Grills that had been open for at least 12 months was $1.4 million in 2023, according to the chain’s 2024 franchise disclosure document. Five of these units exceeded the average.
The chain is looking for prospective franchisees. Its ideal operators have past franchise experience and have a minimum net worth of $1 million and $500,000 in liquid capital, according to the company’s franchise page. Cilantro is looking for operators to commit to at least five units in the U.S. and be ready to begin developing in three to six months.
