Dive Brief:
- Doherty Enterprises has signed a development agreement with Qdoba Mexican Eats to exclusively develop 27 Qdoba restaurants in New York and New Jersey, the companies said in a Friday press release.
- The agreement expands Doherty’s portfolio to eight brands and will inch the 158-store franchisee closer to operating 200 units.
- Doherty is continuing to expand in its core New York-New Jersey markets.The operator announced it was working on a 5,000-square-foot Jinya Ramen Bar, the brand’s first location in New York, and in September Doherty opened a new Applebee’s in Queens, a borough of New York City.
Dive Insight:
The new partnership aligns with the operator’s “disciplined approach to growth,” Doherty President and COO Timothy Doherty said in a statement. It will also strengthen the operator’s regional presence and position the company within a high-demand, fast-growing casual category, according to the press release. Doherty also operates Applebee’s, Jinya Ramen Bar, Panera Bread, Wendy’s and Chevys Fresh Mex, as well as its own concepts, The Shannon Rose Irish Pub and Spuntino Wine Bar & Italian Tapas.
Qdoba’s partnership with Doherty is part of the chain’s ongoing push into the East Coast, where it has signed agreements for 90 restaurants in recent months. The brand’s recent 35-unit agreement with The Rose Group refranchises two corporate locations in State College and Williamsport, Pennsylvania. The Rose Group will expand the brand across Pennsylvania and Southern New Jersey.
A development agreement with Cafua Management will add 25 Qdobas across Central and Upstate New York, including the Finger Lakes and Mohawk Valley. The Tattva Group has acquired Qdoba restaurants in South Central Pennsylvania with plans for additional restaurants in the region.
Qdoba’s franchising strategy includes partnering with experienced multi-unit operators wishing to add a Mexican fast casual brand to its portfolio. The chain looks for franchisees that operate strong brands like Applebee's, Panera and Dunkin’, Qdoba said in a press release. Multi-unit operators now comprise 80% of Qdoba’s system. The chain now has a pipeline of over 650 units, and expects to open 100 units annually beginning in 2027. Qdoba plans to double its footprint by 2032.
