About nine months ago, &pizza was looking at ways to grow, and grow fast. This pursuit sparked an idea to pool resources with another company that could help with expansion, said Mike Burns, CEO of &pizza’s recently formed Latitude Food Group.
“We can explode this thing if we have shared services between two, three, four or five concepts,” Burns said. “Start with one [acquisition]. Let's see if we can grow up from there. And if the first one is successful, then we'll start to look at the other [acquisition opportunities].”
Tijuana Flats became an early contender thanks to its clean balance sheet after emerging from bankruptcy. The Tex-Mex chain also uses similar ingredients to &pizza — including tomatoes, cheese, onions and similar proteins — creating consolidated supply chain buying power, he said.
While HR, accounting and financial resources will be shared, marketing and operations will stay siloed within each brand, Burns said.
“With &pizza and Tijuana Flats, I think it’s really important to have that focus there and then it allows us to give a much broader reach across both brands. The restaurants are going to have more support than ever before,” Burns said.
Tijuana Flats also has several strengths that play into current trends. It has a value-driven menu already and doesn’t need any significant pricing or discounting changes, Burns said, adding that its affordability could be better advertised.
The chain also recently added street tacos to the menu and updated items to provide more authentic Mexican food. Tijuana Flats also offers flautas, chimichangas and other deep fried items that aren’t available at competitors like Chipotle and Moe’s, he said.
While he said the food quality is high, Burns added that Tijuana Flats’ menu is large and can feel daunting to customers.
“We’ve got to figure out a way to segment that menu to just make it easier to order,” Burns said. “I think people have forgotten about Tijuana Flats so as we bring them back in, we want to make it a very seamless experience.”
Comparatively, &pizza serves pizza, knots and Oreo Dippers all made using the same dough in a different format. Customers go down the line and customize their pizzas with toppings before the orders are then cooked in an oven.
Growing both brands
Tijuana Flats has started remodeling its restaurants and several have already been refreshed. Burns said management plans to continue these refreshes. He also wants to jump start franchising. Tijuana Flats had a growth plan prior to bankruptcy, but shrank from over 120 units in 2023 to its current 95. The plan is to grow both company and franchised stores and expand it beyond its home state of Florida, he said.
Burns said he expects to ramp up franchising within 60 days of the acquisition, if not sooner, adding that the brand is well known and news of the acquisition could help bring it back onto people’s radar. He added that there is a lot of capital on the sidelines waiting for the economy to stabilize, which could result in more operators investing in new restaurants.
“Tijuana Flats is more well known than &pizza, especially in Florida,” Burns said. “I think if we can do even half of what we’ve done at &pizza at Tijuana Flats, I think it’s going to be a rocket ship.”
Experienced operators could also sign up for both brands, he added. For example, &pizza has a new franchisee in Orlando planning to open three restaurants. That operator could add Tijuana Flats restaurants if there isn’t room for more pizza restaurants, but there is opportunity to build more Mexican restaurants, he said.
&pizza, which has a strong presence in the Washington, D.C., area, is already looking to grow through franchising, with three units committed in Orlando, Florida; three in Atlanta; three in Raleigh, North Carolina; and three in Charleston, South Carolina, Burns said. More deals are percolating, and there could be an expansion announced within the next few weeks in a new part of the country, Burns said.
Additional growth opportunities exist for the holding company, as well. Latitude Food Group isn’t likely to end its acquisitions with Tijuana Flats — it was built for multiple concepts. Burns said it is interested in mid-sized brands that have a strong regional presence that can share resources across its platform without losing culture.
“We’re looking to add more, but we’ve got to get this one right first, and the proof is in the pudding,” Burns said. “If we can get this thing rolling, then I think the sky’s the limit.”
