Toronto-based BarBurrito, which will go by BurritoBar in the U.S. to avoid a potential trademark infringement with a similarly named restaurant, currently has 268 locations in Canada and three in U.S.
BarBurrito has entered into master franchise agreements in North Texas and Florida and signed area development deals in Hawaii and Houston, all under the name of BurritoBar USA, as the Canadian Tex-Mex food franchisor looks to make a huge presence in the U.S.
Jeff Young, the chief development officer for BarBurrito and BurritoBar, said the agreement signed in Texas calls for the development of 150 stores from north of Austin to the Dallas-Fort Worth metro area over 20 years. The deal is with newly formed franchisee group D Burrito, led by Jag Dhillon. The agreement with Ahara BB in Florida calls for the development of 90 locations throughout the state in 20 years.
Under the Florida agreement, Ahara BB—led by Zach Schaap, an existing BarBurrito master franchisee in Canada—will establish a flagship location, likely in the Orlando area, that will serve as a corporate showcase for the brand and function as a training facility.
Additionally, the agreement grants Ahara BB exclusive rights to manage and develop all BurritoBar locations within the designated territory.
Alex Shtein, founder and CEO of BarBurrito and BurritoBar
“Ahara BB possesses a strong track record of success in the franchise industry. They are well-suited to develop and support our brand,” said Alex Shtein, the founder and CEO of BarBurrito and BurritoBar. “Their expertise in master and multi-unit franchising; business acumen and extensive knowledge of the restaurant industry will be pivotal in driving growth and ensuring the continued success of the BurritoBar brand.”
The recent area development agreements signed in Hawaii and Houston call for the opening of three stores in each state over the next couple of years.
“We’ve had enormous success in Canada and will continue to expand here, but the U.S. is where we see our greatest opportunity for the huge growth we want to see from coast to coast,” Young said. “These agreements really validate the strength of our brand.”
Toronto-based BarBurrito, which will go by BurritoBar in the U.S. to avoid a potential trademark infringement with a similarly named restaurant, currently has 268 locations in Canada and three in U.S.
The franchisor first expanded to the U.S. when it opened a location in Howell, Michigan, in 2020. The franchisee of that restaurant recently opened his third BurritoBar location near the Detroit airport, Young said.
Jeff Young, chief development officer for BarBurrito and BurritoBar
In 2022, the franchisor opened 75 new locations in Canada, and is on pace this year to open 90 more stores in the country, Young said.
“The interest here in Canada has not let up, and the interest in our U.S. master franchise programs has been tremendous,” Young said. “Every week we’re meeting with very qualified franchisee groups from the U.S. interested in becoming masters in different parts of the country. They, like us, see the potential for explosive growth.” He hinted at but would not divulge details on additional master franchise agreements in the U.S. being signed in the coming weeks.
Established in 2005 in Toronto, BarBurrito features healthy, fresh, made-to-order Tex-Mex food in a quick service restaurant format. The fast casual restaurant chain will duplicate its menu in United States, featuring burritos, bowls, nachos, tacos and quesadillas. Young said the franchisor will also continue to focus on growing its footprint in the suburbs of major cities as opposed to establishing its presence within the cities.
Young said BurritoBar offers customers an alternative to Chipotle Mexican Grill, the market leader in the fast casual Mexican food market.
“Yes, we’re both in the same category, but the big difference is our menu that is much broader than theirs, with more proteins and more sauces,” he said. “We also have fryers so we can offer a different variety of crispy products.”
BurritoBar also operates in a smaller footprint than that of Chipotle. “While Chipotle stores are generally 2,400 to 2,500 square feet in size, we average about 1,200 square feet with 15 to 20 seats inside,” Young said. “What that does is make us a much lower investment cost, a lower barrier for entry for franchisees because of the savings on commercial real estate space.”
The cost to build a BarBurrito and BurritoBar location, without drive-thru lanes, normally runs between $350,000 to $400,000, according to Young. Franchisees need to have $100,00 to $125,000 in cash to qualify for bank financing.
Toronto-based BarBurrito features healthy, fresh, made-to-order Tex-Mex food in a quick service restaurant format. The franchisor will duplicate its menu in United States under the BurritoBar name, featuring burritos, bowls, nachos, tacos and quesadillas.
“It’s very exciting how fast we’re growing, and being in the U.S. opens up all kinds of new opportunities for us,” Young said. “I can’t think of another Canadian company that has achieved this sort of success growing this fast.”