Dive Brief:

• After unveiling a logo earlier this year, Moe's continues its push toward a more authentic Southwestern vibe, introducing street-style menu items and a cleaner, modernized store design, the company announced last week. 

• The "Untamed Southwest" makeover aims to complement Moe's success throughout its 18-year history. The new "Oasis" store, which features booth, banquet and communal seating — as well as a second line for to-go, delivery and catering orders — will debut outside the company's hometown of Atlanta, Georgia on Friday. 

• Two additional stores in suburban Atlanta (and then one in Alabama and one in Illinois early next year) will test new menu items, which include a fried avocado taco on a blue corn tortilla, a quinoa power bowl with chicken and beans and a torta with smoked brisket and Mexican street corn.

Dive Insight:

Moe's is updating its look, increasing its share of digital transactions and targeting customers who want fewer burritos and more bowls, tacos and salads. The company's catering arm will also get a financial boost.

New décor will refresh the brand and streamline operations in an era of flattening foot traffic and increased digital ordering. As Chipotle and many other quick-service brands have, new Moe’s stores will be built with the takeout and delivery customer in mind, adding a separate pick-up area and eventually self-order kiosks, Moe's president Bruce Schroder said in the release. Digital sales now cover 10% of all transactions, since Moe’s combined online ordering and its loyalty app last year.

In an interview with QSR in August, Schroder ​described catering as the "best chance to get Moe's in the mouth of somebody who hasn't tried [it] before" and has plans to create specific catering menus to guide guests to items that travel well. Similarly, the "Untamed Southwest" menu will stray from customization-first, which has led to some overstuffed burritos, and instead lean toward more signature items. 

Moe's jumped on the chance to differentiate after Chipotle's disease outbreaks tanked sales and tainted public perception. A 2016 Harris poll pinned Moe's as "Brand of the Year" in the Mexican quick-service segment, despite having one-third the number of locations as Chipotle and one-tenth that of Taco Bell. In terms of units, Moe’s competes more directly with Del Taco and Qdoba, but both posted higher systemwide and average unit sales in 2016. With 550 locations, Del Taco champions made-in-house ingredients, which have boosted average unit sales to $1.36 million. Moe's has 150 more stores but average unit sales of about $1.1 million.

Moe's menu updates as consumer tastes shift toward fresher and more authentic meal options. By incorporating street-style foods such as elotes and bunuelos (Mexican donut holes), Moe’s is harnessing the power of these large-scale culinary trends. If these updates resonate with consumers, this could give Moe's the chance to poach customers from its rivals and establish itself as a strong contender in the authentic QSR space.