California Tortilla
Group CalTor
Carlyn Kelley
ckelley@radford.edu
Andrew Madey
amadey@radford.edu
Lindsey Pearson
lpearson@radford.edu
Trish Smith
pasmith@radford.edu
Table of Contents
Executive Summary
Page 1
Franchisor Background Information
Page 2
Product/Service Description
Page 3
Situational Analysis
Page 5
Target Market
Page 11
Site Location
Page 13
Marketing Strategy
Page 15
Recommendation
Page 17
Executive Summary
California Tortilla will be successful in the New River Valley for many reasons.
Blacksburg is a good location for this restaurant, the target markets all fit in this area, and the
California Tortilla franchise is unique to the New River Valley. The Blacksburg location was
chosen based on the company’s requirements of: close proximity to an airport, university, major
businesses, or shopping centers; all aspects to draw in customers.
Blacksburg is a well populated area, has a major university and many close businesses.
Therefore, California Tortilla's target markets for this area will include college students, faculty
from the university, and families with children that live in and around Blacksburg. Because of
the inexpensive pricing, type and quality of food, convenient service, and atmosphere of the
restaurant, California Tortilla would appeal to all of these target markets. California Tortilla is a
unique restaurant and there is nothing else like it in the New River Valley. This will help draw
customers to Blacksburg from the entire New River Valley.
California Tortilla has done very well in other college settings such as near the University
of Maryland; therefore Blacksburg would serve as an equally competitive atmosphere. This
would not only be a profitable venture for the franchisee but could significantly increase
awareness and interest in the California Tortilla Group. The Blacksburg location would be the
only location in southern Virginia, therefore this would help to get the California Tortilla name
out. Blacksburg is also a location which is frequently visited by influential people for event such
Virginia Tech football games, which bring in big crowds. For these reasons, California Tortilla
would be a successful franchise in the Blacksburg area.
1
Franchisor Background
California Tortilla is a modified Mexican fast food restaurant. Their motto is “fresh, fast,
and fun,” which is clearly reflected by the atmosphere, service, and food in the restaurant.
(California Tortilla Group, Inc., 2006, p. 1) This spunky, relatively new restaurant was
established in 1995 by two California natives, Pam Felix and Alan Cohen. (Fling, ¶1) To gain
initial recognition, they used cheap, old fashion grassroots marketing. They set themselves apart
from similar establishments by using quirky marketing techniques such as Pop-Tart day and
encouraging all of their employees to be abnormally excited at all times. Other promotions they
are known for are Jungle Noise day, Freeze-pop day, Night Mystery Price Burrito Wheel, and
Taco Talk, the burrito newsletter.
California Tortilla started franchising in 2003. Today they have 20 franchise outlets
located in Maryland, Washington, D.C., Virginia, and Delaware. There are plans to open three
more in Virginia, one in West Virginia, and one in Dulles Airport. The typical California Tortilla
is 2,500 square feet with seating for 75 people, as well as outdoor seating for at least 20. The
ideal location is in strip centers which include grocery stores and other retailers such as
Starbucks, Panera, and Cold Stone Creamery. (California Tortilla Group, Inc., 2006, ¶6)
When a franchisee shows initial interest in investing in California Tortilla, the
headquarters sends them a packet with information on the background of the company and the
product that they sell. They also include reviews and an application that includes a worksheet to
help the potential franchisee figure out how much available capital they have to invest in a
California Tortilla franchise. When reviewing franchisee applicants, California Tortilla takes into
consideration the following: financial net worth, business experience both in and out of the
2
restaurant industry, formal education, psychological profile, and a personal interview. (California
Tortilla Group, Inc., 2006, p. 8)
Once a franchisee has been approved by the Franchise Selection Committee, they are
trained at the headquarters in Maryland and receive pre-opening help at their location. The
initial contract is 10 years, with an option to renew for another 10. The franchisor also provides
access to all recipes, marketing techniques, and support staff, as well as an operating manual and
the rights to use California Tortilla’s trademarks. The franchisor will provide ongoing support
services by email, phone, newsletters, meetings, training seminars, and visits to the location. The
franchisor also manages the distribution system so that all of their franchisees have the best
pricing a product at all times. (California Tortilla Group, Inc., 2006, p. 9)
The franchise fee is $25,000, which funds the training and initial assistance from the
franchisor. There is an ongoing royalty fee of 5% and an advertising fee of 2%, paid by the
franchisee to California Tortilla. The investment on part of the franchisee, as estimated by
California Tortilla, is between $325,000- $585,000. At the first meeting, a specific breakdown
of the estimated costs for that specific franchise will be provided. (California Tortilla Group,
Inc., 2006, p. 8)
Product/Service Description
California Tortilla is a quick-casual restaurant offering customized Mexican cuisine.
California Tortilla offers burritos, quesadillas, tacos, fajitas, as well as salads. Each of these
meals is freshly prepared on a daily basis. There are many other fast, cheap Mexican food
options, but California Tortilla differentiates from the competition by offering healthy
alternatives. According to California Tortilla’s franchise information, no preservatives or fats are
used in the cooking. California Tortilla fixes their dishes with the leanest meats and boneless,
3
skinless grilled chicken breasts; and if a customer wants to be extra healthy, there are numerous
vegetarian options. (2000, p.15)
The focus of California Tortilla is not only to provide appetizing, healthy food; the
exceptional and unique service which can easily stand on its own creates a truly distinct dining
experience. California Tortilla describes itself in its franchise information as a “quick pick-meup,” where the “atmosphere is bright and colorful, (and) the employees are warm and friendly.”
(2000, p. 2) Due to this cheerful, “goofy guy” image in the business, people may perceive
California Tortilla as the underdog and begin to be more loyal towards that mutual friend in
need, more properly said by Pam Felix as “It’s much more personal for people, and they want
you to succeed because you’re the goofy guy. It’s incredibly successful for us.”(Felix, 2006, ¶3)
Unique services include quirky promotions that give customers an opportunity to let
loose. For example, on Jungle Noise Day, if a customer come in and makes any jungle noise,
they get free chips and queso and a 2-for-1 burrito coupon for their next visit. Along with those
novel promotion tactics, there is also a “Wall of Flames” which holds over forty different sauces
to suit each customers tastes. (California Tortilla Group, 2006, p. 3)
Consumer usage can only go up for California Tortilla. In the franchise information
packet, it is explained that this restaurant is a great investment for a franchisor because it is “a
part of the fastest growing segment of the restaurant industry – the quick-casual segment, a $5 to
$10 billion dollar market.”(2006, p. 7) The quick, healthy, and quality service that California
Tortilla provides, suits the needs of the time pressured individuals today, who are tired of greasy,
unhealthy fast-food options. By taking advantage of this need/want, California Tortilla can
position itself in the future as the fast and healthy alternative to other fast-food establishments.
4
The Mexican fast-food industry is beginning to saturate the US market due to the influx
of Hispanic immigrants, projected to represent 17% of US population in the future, along with
the rise in Asian demographics, i.e. Hawaiians, Japanese, and Vietnamese. (Bonne, 2005, ¶3)
One company in particular, Maui Tacos, has already begun to fuse Mexican flare with exotic
Hawaiian flavors in their sauces and dishes, to appeal to the rising Asian, Hawaiian in their case,
populations demand for more recognizable tastes. Current trend information also adds that
“Mexican food is the hottest food category of the quick-casual segment and is expected to grow
fifty percent over the next decade.” (Packaged Facts, 2006)
Situation Analysis
SWOT Analysis
Although relatively new into the restaurant industry, California Tortilla displays strengths in
many important areas. They have started off to a good beginning in the past twelve years, and the
future looks even better for this rising star. This doesn’t mean that some weaknesses aren’t
present within the company. Opportunities within the industry, and the economy, are in the
company’s favor though, and as with any company, there are some threats that need to be
handled with caution.
Some of the strengths within California Tortilla that provide a competitive edge would be
their quick, quirky service. They also offer good quality food at extremely reasonable prices.
Moreover, they successfully create a loyal fan base with their unique marketing methods. Each
month, co-founder Pam Felix sends out the publication “Taco Talk”; a humorous and lighthearted newsletter that keeps subscribers up to date on the “latest in the burrito world.”(Felix,
5
2005, ¶ 5) To encourage people to subscribe, California Tortilla sends each recipient an email
with a coupon good for a free taco.
Email provides California Tortilla a cost-effective marketing outlet that plays a large roll
in generating traffic into their stores. For example, if at any given moment Felix feels that the
day will be slow, she sends out an email to thousands of people and offers them something to
entice a visit the their nearest franchise. However, she realizes that “people don’t want to be
bombarded with promotional emails all the time,” so she sticks by her theory of one newsletter
and no more than two promotional offers each month. (Fling, ¶6)
An additional strong point in their marketing department, other than email, is what some
would label as their “goofy promotions.” This franchise has been known to host burritos that
feature things like political candidates. Each week the leader is announced to the press, which
gained considerable coverage from influential sources such as CNN and the Washington Post.
(Fling, ¶ 7) In March 2006 they held a promotional event highlighting their specialty burritos.
This was an attempt to get customers to try an item that was exclusive to California Tortilla,
instead of the ordinary chicken or beef burritos. For each one purchased, the customer received a
scratch off ticket where everyone was a winner. Fifty-one people won free burritos every week
for a year; other goofy prizes included “spunky cashier lessons.” (Felix, 2006, ¶3)
The use of these goofy promotions and quirky service has helped California Tortilla build
a very strong brand personality and image with their customers. It aids them in building local
business, and in turn, connects them to their patrons. From a public relations stand point, they
couldn’t be doing a better job.
Conversely, some of what can be viewed as strengths have also resulted in weaknesses
for California Tortilla. They currently implement a very low cost marketing strategy since they
6
have an extremely small advertising budget. Pam Felix has been quoted as saying “we’re too
cheap to pay for advertising.” (Fling, ¶8) This poses a severe and immediate weakness for the
franchise. If they want to take their company to the next level at this critical time, they must add
more money to the advertising/marketing budget. Though they are currently good at generating
local business, they could create a much larger customer base if they advertised on a larger scale.
Another downfall the company faces is the issue of providing insurance benefits to its
employees. Since California Tortilla is a small chain; insurance proves to be too costly to cover
all employees. Felix spoke at a press conference where she said that she was “only able to afford
insurance for 10 of my 60 employees.” (Hensley & Kim, 2001, ¶5) If they were able to provide
better benefits, finding spunky employees might not be as much of an issue as it is currently.
Conformity among franchises has proven to be somewhat of a glitch for the company.
When certain corporate decisions are made not all franchises are required to comply. When they
decided to make menu and price changes, each location was required to make only the menu
changes but not the price changes.(Felix, 2006, ¶4) This is problematic. If two stores are in close
proximity to each other and only one decides to make the price changes that could cause negative
feedback from customers. Customers need uniformity in service, quality, product and price. A
seamless environment is necessary throughout all California Tortilla stores.
Meanwhile, some great opportunities do exist for this company. Some of the prospects
that could prove to be very lucrative are the upswing of quick and casual dining, the craze for
health food, and the declining gas prices. The quick and casual segment is a one of the fast
growing portion of the restaurant industry today. As more people are pressed for time due to
hectic lifestyles, companies like California Tortilla benefit by offering convenient options for
those on the go.
7
Not only are more consumers looking for fast, convenient choices, but they also demand
healthy alternatives more than ever. The general public is increasingly concerned with the
importance of healthy eating. As opposed to the traditional burger joint, California Tortilla
provides consumers with a healthier option that the consumer can feel good about when they’ve
completed their retail experience.
The price of fuel has been a major concern in recent months, and with prices currently on
the decline, this could prove to be a major boost California Tortilla. Not only are people more
willing to drive places when gas is cheap, but they’ll also have more discretionary money to
spend. This could potentially have a trickled down effect in relations to transporting costs to each
of their franchises.
A potential threat for California Tortilla would include the susceptibility of U.S.
agriculture to bio-attacks, sourcing accusations, and lack of local brand awareness. These threats
must be carefully monitored since they could have severe negative effects on business.
The U.S. agriculture system is at a high risk for a bio-attack, which could severely disrupt
the food industry. U.S. livestock has become increasingly more disease prone, and have shown a
decreasing in natural tolerance to disease. (Chalk, 2004, p. 9) Security at animal auctions, as well
as meatpacking and processing plants, tend to be below par. (Chalk, 2004, p. 10) An attack on
this industry would be easy to achieve, which could prove disastrous for California Tortilla and
others in the market.
Recently Chipotle came under fire for sourcing their tomatoes from farms that “underpay
and often mistreat workers.” (Arellano, 2006, ¶2) Not only Chipotle, but also other numerous
companies, have come under attack from their choices in sourcing. Many consumers will not
8
purchase products they know were made in an unethical manner. California Tortilla needs to be
aware of these issues and use care when selecting their vendors.
Due to the small number of retail outlets that California Tortilla currently owns, brand
awareness could potentially threaten success in the New River Valley. Many people in the area
may have never been exposed to the brand because the nearest franchise location is in Richmond.
Therefore consumers may be hesitant to try food from a restaurant they have never seen or heard
about.
Competition
California Tortilla’s major competition comes from Mexican restaurants with fast service
and inexpensive prices. Some of these competitors sell alcohol; others do not. Still others have
menus that include other types of food, as opposed to just Mexican. The Taco Inn in Radford, for
example, sells Mexican food as well as Italian dishes, chicken tenders and French fries. One of
California Tortilla’s signature trademarks is that they carry over 75 different kinds of hot sauces.
Some are their original blends, others are from various vendors. This could put them ahead of the
competition because no-one else in the market has anything remotely like that.
Most competition is sit down types of Mexican restaurants rather than fast food. This could be an
advantage because if the consumer wants fast Mexican food they are likely to visit California
Tortilla rather than a sit down restaurant. Taco Bell in Radford is definitely competition because
they are in the fast food sector, but they sell lower quality products and provide no real
memorable service. There is also a big price range in the competitors of California Tortilla.
Some of the more upscale Mexican restaurants had much higher prices than California Tortilla
that could attract exclusive consumers because they think price relates to quality. Some still have
9
very similar prices though, such as El Puerto and El Mexicano in Roanoke, Mi Puerto in
Radford, and Cabo Fish Taco in Blacksburg.
Most of California Tortilla’s competitions are very big on atmosphere just like California
Tortilla. The atmosphere at each business varies however. California Tortilla’s atmosphere, for
instance, is very fun, bright and festive, while the competition has more of a laid back, traditional
feel. The menus of the competition had similar food items such as appetizers, salads, tacos,
fajitas, burritos, nachos and quesadillas. Some had Mexican seafood entrees and some did not.
Indirect competition of California Tortilla would be other restaurants that are also fast
service, but provide the casual dining experience. These restaurants include Applebee’s, where
their curbside pickup is a fast alternative.
Other Factors
The quick, casual segment has not made too many technological advances to date.
However, “all of that could change as the marketplace becomes more competitive, operational
costs rise and technology costs continue to plummet (Bickers, 2006, ¶5).” This means that
California Tortilla will need to advance their technologies in order to stay, and grow, as a
contender in the field. Touch screen ordering has been popping up all over retail, including in
several segments of the restaurant industry. Because consumers are accustomed to self service,
touch screens are considered “extensions of the Point of Sale (POS), rather than…devices to
manage and keep running (Bickers, 2006, ¶7).” If consumers consider them an extension, then
they will be more expected, thus become a necessary upgrade for California Tortilla to satisfy
future customer expectations. Studies have shown that establishments utilizing touch screens
when ordering have “increased the average foodservice order as much as 30 percent,” due in part
to, “ the machine’s uncanny ability to up-sell every time. They do so based on a revolution called
10
context-sensitive data (suggesting appropriate side dishes and accompaniments, for instance),
(Bickers, 2006, ¶11).”
Although there is an obvious benefit to adding touch screen ordering to California
Tortilla, the upgrade would mean the franchisee “would be expected to foot the bill (Bickers,
2006, ¶19).” In essence that means they are paying for a service that doesn’t immediately
increase the value of their product.
The economic status of the New River Valley is in good shape. According to the
New River Valley Economic Development Alliance, the percent of unemployed persons within
the New River Valley has dropped from 5.0% in 2001 to 2.9% in May 2006. This means more
people have jobs and, thus, more money to go out and eat. (Virginia Economic Development
Partnership, n.d. p.2) The cost of living in the New River Valley is extremely low, when
compared to other metropolitan towns and cities in which California Tortilla has already opened.
This could potentially pose as a drawback to establishing a store in this area. The per capita
Personal Income in 2003 was $22,109 (Virginia Economic Development Partnership, n.d. p.5 ),
which, even if doubled, does not appease California Tortilla’s site selection criteria for the
average household income requirement, being $50,000 or more (California Tortilla Group, Inc.,
2006, ¶3). Therefore, California Tortilla would be quite limited in their location in the New River
Valley.
Target Market
Within the area of the New River Valley, there are numerous college and post college
residents. Just as Starbuck has found a niche for the intellectual coffee drinker, California
Tortilla has decided to take a look at the intellectual “taco eater”. California Tortilla provides
more then just the quality products on their menus, but the environment that draws people in and
11
provides a unique relationship with the particular store and employees. The hopes of California
Tortilla would be that students attending Virginia Tech will be looking for an alternative to the
basic Taco Bell experience by providing the food and atmosphere previously mentioned.
Due to common knowledge, the college male has been known to gain excitement from
various hot sauces and challenges involving spicy items to test manhood. California Tortilla will
draw these guys with their “The Wall of Flame” and the various degrees of intensity with their
sauces. Young women, on the other hand, are more health conscious and tend to chose healthier
menu items. (Driskell, Meckna, &Scales, p. 5) California Tortilla offers vegetarian burrito and
the revolutionary burrito bowl for the carbohydrate sensitive consumer. California Tortilla has
been noted by The Washington Post as being the reader’s choice winner of “Best Cheap Eats” in
2005. This cheap price point would greatly appeal to the small budgets that college students tend
to live off of.
Along with the healthy and money conscious college student, the New River Valley
contains vast amounts of university faculty as well as many families with small children who
would greatly enjoy the California Tortilla atmosphere. Always stressed for time, whether due to
classes, research, or meetings, faculty would appreciate the quick aspect combined with the
option of flavors other than the typical fast food provide by others in the quick casual segment.
With these tight time limits, California Tortilla can offer a relaxed retail experience that leaves
the customer with high quality meal within a reasonable time and price. Professors are known for
their quirks and openness to new experiences, therefore the fun, involved, dynamic atmosphere
of California Tortilla will attract them once they step in the door.
Families with children will also appreciate the environment of California Tortilla. Parents
in the area will enjoy that they can provide their children with quick, healthy meal that won’t be
12
too expensive. Children will enjoy the fun, vibrant color scheme as well as the fun promotions,
such as Jungle Noise Day where they will be rewarded for acting silly and making jungle noises.
California Tortilla provides a fun, stress-free environment where both children will love to go
and parents will be comfortable taking their rambunctious children.
The New River Valley is overflowing with university students and faculty as well as
families with children. These markets will continue to see growth in this area because both
universities in the area, Radford and Virginia Tech, are doing well and continue to see rising
enrollment rates. Often, the graduates from these universities settle down and decide to raise a
family here, increasing the family market. California Tortilla would satisfy the need for this
market to have a new, fresh, quick-casual restaurant in this area.
Site Location
College students and the related university support personnel are willing to travel for
food, but not extremely far from campus. Most have time limits on their lunch break and driving
takes up too much time, they prefer foot travel due to its ease and convenience. The
recommendation for the California Tortilla franchise location is 302A N. Main Street,
Blacksburg, Virginia. Communication with the landlord of this property has been initiated, but
from a visual estimate, the location appears to have 2500 square feet. The foot traffic in the area
is exceptional and exposure is at a premium. With an area for plenty of parking, space could be
easily set aside to build an outdoor seating venue.
Located directly across from the Virginia Tech campus, the site is within a more than
reasonable distance for the target market to be pursued. Also this site proves to be ideal because
it falls within the parameter set by California Tortilla that the median family income must be
13
$50,000 or more. (California Tortilla Group, 2006, ¶3) According to summary census
demographic information the median family income for the area is $54,900. (FFIEC, 2006, ¶2)
This factor alone eliminated any available location in Radford even though our target market of
college students and college educated would be present. California Tortilla also demands a 50%
college/college-grad population must exist surrounding the site location (California Tortilla
Group Inc., 2006, ¶3). Blacksburg, VA well exceeds this standard with a 64.2% composition of
people holding bachelor’s degrees, higher than the average in the state of Virginia, which is
29.5% (US Census Bureau, 2006, People Quick Facts Section).
The 302a N. Main St. address is the optimal site location recommendation, but other
alternatives do exist. Two potential prospects are 890 Kabrich St. Blacksburg, Virginia and 314
N. Main St. Blacksburg, Virginia. The Kabrich St. location has natural gas lines for commercial
use in place, non-slip kitchen floors, and potential for outdoor seating of 20 plus. Though this
location has all these benefits, it’s has poor visibility. This location is positioned away from an
intersection of two roads, Prices Fork and North Main Street Blacksburg, Virginia. To be factual,
this site location is at the intersection of Kabrich Street and Webb Street in Blacksburg, Virginia.
The flow of traffic is sub-par, both vehicle and foot, when compared to the other locations
considered. At the 314 North Main location, there is great exposure, foot traffic, and potential to
adapt the layout for outdoor seating.
The intersection of North Main and College Street Blacksburg, Virginia, is situated right
on the edge of campus on Virginia Tech’s main strip. The name College Street can help depict
the proximity to the school. Since this particular site was a record store, students will be aware of
the sites location and relation to campus landmarks. The potential, and heavily noted, flaws
would be the factors of square footage and outdoor seating. The size of the site is 2,000 square
14
feet, which will restrict the flow of operations. Blacksburg, Virginia also discourages the use of
any type of seating on public sidewalks. The idea of placing picnic benches at the front of the
store, to show off satisfied customers, is out of the question. The only viable solution would be to
build outdoor seating at the rear of the store, but that would take away from the necessary storage
and management space.
Blacksburg, Virginia has the perfect demographics for California Tortilla.
Virginia Tech is a major university with students, faculty and alumni who spend vast amounts of
money within the town. Foot traffic is heavy on the Main St. of Blacksburg due to the lack of
parking and the saturation of students and faculty. California Tortilla will be in a unique position
to provide customers with a true restaurant experience and set an example for what fast Mexican
style food should be.
Marketing Strategy
California Tortilla’s marketing mix consists of fresh high quality reasonably priced Mexican
food uniquely promoted made available in popular locations. To obtain the interest of the target
markets, California Tortilla will give away free burritos of choice and a regular drink to all
customers on their first day of business which is a part of their pre-designated corporate
promotional plan.
The promotional planning and execution for each new franchise opening (as well as for
continual promotional support for existing California Tortillas) is contracted out to a private
public relations and marketing firm, Brotman– Winter- Fried Communications (BWF hereafter).
While the firm is based out of Falls Church, Virginia, they serve all California Tortilla
promotional needs regardless of location. Preliminarily, a BWF account executive will contact
media outlets who reach the designated target market such as radio stations, news stations and
15
local print media. In this case, campus and community newspapers such as the Collegiate Times
and the NRVToday would be contacted to run ads announcing the grand opening and inform
readers about the free burritos on the grand opening day. The price for a 4x4 add in the
Collegiate Times would cost approximately $60. Radio stations frequently listened to by
university students such as HOT100 and K92 and those more listened to by area families such as
PSK and STAR Country will receive press releases. WDBJ and KFSM, local news stations, will
receive press releases as well. All preliminary press releases will simply be to inform the
audience about the opening of the restaurant and the first day offers.
A few days before the grand opening, a BWF account executive and support staff will
travel to Blacksburg to do street teaming; a form of grass-roots marketing where the street
teamers will hand out colorful information cards made by California Tortilla with all of the what,
when and where of the grand opening.
Keeping the designated target markets in mind, the street teamers will use their
professional judgment to choose where to pass out these cards. During the day while students are
in class they will be targeting the university faculty taking lunch breaks in downtown Blacksburg
as well as other parents out with children. In the evenings after classes are done, more of the
college students will be targeted. Also, they will go onto the Virginia Tech campus and give
them to RAs, club advisors, Greek leaders, and any other outlet that will pass more cards onto
their peers or get the word out. The street teamers will also inform all of the other local retailers
and businesses such as banks, medical and law offices, and car dealers of the grand opening
events.
In addition to the free burrito and drink promotion, California Tortilla makes opening day
a celebration. Street teamers return to entertain and answer any questions for patrons waiting in
16
the long line outside of the restaurant. Media outlets are contacted that morning to be put on the
list of the days events in hopes that a reporter or photographer will be sent to cover the grand
opening ceremony. The ceremony frequently consists of a local dignitary cutting a giant burrito
rather that the traditional ribbon. In the situation for a Blacksburg opening, Frank Beamer, the
Hokies’ football coach, will be asked to do the burrito cutting honors. Due to Mr. Beamers’
almost celebrity status among students and the community, this will grab the attention of a lot of
patrons, as well as media outlets.
Continual promotional and customer service strategies are set forth to market the
franchise positively. California Tortilla is known for its unique and quirky promotions. A couple
of examples are Free Freeze Pop Day, which is conveniently done in the middle of the summer
to cool customers down; and Jungle Noise Day where if customers make a jungle noise (just
imagine the little kids and fraternity boys) they receive free chips and queso and a two for one
burrito coupon for their next visit (California Tortilla Group, Inc., 2006 p. 3). These promotions
are original to California Tortilla and the quirky fun factor will give a competitive edge.
California Tortilla’s products and services will be made available from 11am until 10pm (9pm
on Sundays) (CaliforniaTortilla Group, Inc., 2006). It will be open just in time for the beginning
of lunch for the working professionals and university staff on lunch breaks and is open late
enough to satisfy the varying, hectic eating schedules of students; busy families with children
will also appreciate the long hours.
Recommendation
Based on all of our research and the information gathered, Group CalTor would
recommend California Tortilla as a viable retailing alternative in the New River Valley. Just
because California Tortilla has stated preferences for site location that may not match all the way
17
up with opportunities in the New River Valley, that does not mean there are no opportunities for
it. The location in Blacksburg has many advantages for bringing in business. Blacksburg is the
home of a major University and many businesses. The University will bring in college students,
faculty, and alumni to the area for potential customers. Not only will this bring in customers, but
also possibly employees for the company. The New River Valley is an area where there may be
many people who need second jobs (inferred from the low median income), or students at one of
the eight higher education facilities often need part time jobs, therefore California Tortilla should
have few problems with hiring employees.
The New River Valley would be a great place to test the expansion project because it
would be in a state that business is already conducted in, so there are familiar state taxes and
laws when opening. Other competitors like Taco Bell, located off major interstate, have been
said to average $900,000 a year (Peters, 2002, ¶5). A major interstate, I-81 cuts through the heart
of the New River Valley. If strategically placed, California Tortilla could create itself the venue
to be a pit stop, and revisited location, for travelers which results in the spreading of their name.
The target market in this area is college students, faculty from the university, and families
with children that live in and around Blacksburg. California Tortilla will appeal to the target
market because it is an affordable restaurant with quality food, it has a fun atmosphere, it is
convenient, and there is no other restaurant like it in the New River Valley. Based on all the
information gathered about California Tortilla and the Blacksburg area, Group CalTor agrees
that California Tortilla would be a successful franchise in Blacksburg.
18
References
Arellano, Kristi. Chipotle squeezed over Fla. tomatoes. DenverPost.com. Retrieved October 11,
2006 from http://www.denverpost.com/portlet/article/html/fragments/print_articleID432
Anderson, Jenny. (2003). Quick Casual Flavors. Retrieved October 11, 2006, from
Flavor & The Menu Web site: www.flavor-online.com
Bonne, Jon. (2005 February 7). Exotic tastes, familiar brands. MSNBC.com. Retrieved October 4,
2006 from http://www.msnbc.msn.com/id/6895486/
Bickers, James. (2006). Is Fast Casual Self-Service at the Tipping Point? Retrieved
October 11, 2006, from http://www.selfserviceworld.com/article.php?id=15900
California Tortilla Group, Inc. (2006). Franchise Information Packet. Rockville, Maryland.
California Tortilla Group, Inc. (2006). Site Location Information. Retrieved September 27, 2006
from https://ruexchange.radford.edu/exchange/lpearson/Inbox/FW:%20CT%20Site%
20Selection%20Criteria-2.EML/site%20criteria%20for%20CT.doc/C58EA28C-18C04a97-9AF2-036E93DDAFB3/site%20criteria%20for%20CT.doc?attach=1
Chalk. (2004). Vulnerablity of U.S. Agriculture to Bio-Attacks.
Coomes, Steve. (2006). Restaurant Design: Fast-Casual Look Attracts Customer.
Retrieved October 11, 2006, from
http://www.fastcasual.com/article.php?id=5699
Driskell, Meckna, &Scales. Differences exist in the eating habits of university men and women
at fast food restaurants. Department of Nutrition and Health Sciences, University of
Nebraska.
Retrieved November 30, 2006 from
http://72.14.209.104/search?q=cache:
WLTWW4u6mIJ:ww.aseanfood.info/scripts/count_article.asp%3FArticle_code%3D110
17214+eating+habits+of+male+college+students&hl=en&gl=us&ct=clnk&cd=10
Felix, Pam. (2006) The Chronicles of the Queen of Burritos. Chain Leader-Insight for
Restaurant Exectutives. Retrieved October 11, 2006, from
http://www.chainleader.com/blog-felix/033106.asp
FFIEC. (2006, June 14). Geocode Search Result for 2006 HMDA/CRA Reporting. FFIEC
Geocoding system. Retrieved November 20, 2006 from
http://www.ffiec.gov/Geocode/Geocodesearch.aspx?parmString=NbfwiyyW9qx0OIrnXS
Quoo4pKjidnnmBlBQB3m2iPOeh4Xl8F4HPAA0hdjGcqzGv
Fling, Sharon. California Tortilla Customers Love Taco Talk. GeoLocal.com. Retrieved October
11, 2006 from http://www.geolocal.com/public/79.cfm?sd=45
Food Industry Glossary. (n.d.). Retrieved October 11, 2006, from
http://www.technomic.com/facts/glossary.html
Hensley & Kim. (2001 May 9). Nation’s Restaurateurs Applaud House and Senate For Efforts
To Make Health Care More Affordable, Accessable. Restaurant.org. Retrieved October
11, 2006, from http://www.restaurant.org/pressroom/pressrelease.cfm?ID=211
Packaged Facts. Latin on the Menu: The U.S. Food Service Market for Hispanic Foods.
MarketResearch.com Retrieved October 4, 2006 from
http://www.marketresearch.com/browse.asp?categoryid=489&g=1
Peters, James.(2002) Tricon Hooks LJS, A&W Chains for $320m. Nation's Restaurant News.
Retrieved on October 13, 2006, from
http://www.findarticles.com/p/search?qt=Tricon+Hooks+LJS%2C+A%26W+Chains+for
+%24320m&tb=art&qta=1&qf=all&x=37&y=9
Virginia Economic Development Partnership. New River Valley, Virginia. Retrieved November
12, 2006, from http://www.nrvalliance.org/data_center/area_info/documents
/NRV_community_profile.pdf