Dive Brief:
- Fuzzy’s Taco Shop will open its first full-service model, called Fuzzy’s Tacos and Margs, on Monday in the Houston suburb of Sugar Land, Texas, the company wrote in an email to Restaurant Dive.
- The location is owned by NGA Group and operated by Miro and Andrew Nazarian, who agreed to open three full-service Fuzzy’s locations by the end of this year, Fuzzy’s Taco Shop said. It will evaluate how these perform before scaling across its system.
- The restaurant is a departure from a typical Fuzzy’s shop where guests order at the counter and pick up food when it’s ready. Instead, customers will be directed to a seat and a “Tacotender” will take orders and deliver food to tables.
Dive Insight:
The new prototype comes as the chain, which is owned by Dine Brands, undergoes several initiatives to boost performance.
In May, Fuzzy’s added a happy hour to help drive on-premise traffic and expand its bar business, Dine Brands CEO John Peyton said in a May earnings call. Fuzzy’s also updated its online ordering website and partnered with third-party delivery providers “to increase market visibility and reach our guests where they are and how they want to order,” Peyton said. The chain has also been adding wireless and mobile pay platforms systemwide, a rollout expected to be completed in June.
The new full-service restaurant will have a refreshed menu and a beverage lineup of new margaritas. The menu includes new and fan-favorite tacos, like the Texas Brisket Taco, the Cali-Style Steak Taco and the Sonora Relleno. The menu also offers Ultimate Nachos and taco combo options where guests can combine any tacos into one meal. New beverages include the Paloma ‘Rita and the Watermelon ‘Rita, in addition to frozen beverages such as the Fuzz Driver and a Double Rum Dauquiri.
New store types and ongoing initiatives could help stem same-store sales declines. During the first quarter, Fuzzy’s systemwide comparable sales were down 12%, compared to a 9.8% decline in the year-ago quarter, according to an earnings release. The chain’s store count has shrunk as well — Fuzzy’s ended last quarter with 115 units compared to 128 in Q1 2024. However, the chain signed deals last year to open 40 units across Arizona and Texas that will more than make up for the unit count decline.
Fuzzy’s isn’t the only Dine Brands concept looking into new formats. Applebee’s is in the midst of developing a new prototype that will enhance its off-premise business. The company expects to open a restaurant with the new prototype later this year. Dine is also expanding dual-branded concepts with Applebee’s and IHOP across the U.S.
