Salad Collective operates 23 company-owned Mad Greens in Colorado, Arizona and Texas. The company said its close to signing its first franchisee agreement.
Salad Collective CEO Darden Coors referred to Mad Greens, the healthy food concept her company acquired in 2013, as an “emerging adult brand.”
What better way to describe a restaurant concept that’s been around for more than 20 years and is still looking to sign its first franchise agreement?
“To be totally honest, it’s been a challenging environment to grow the brand. It’s a bit frustrating with how slow things are moving, but we have a long-term mindset and we’re being very careful in who we select to grow our brand,” said Coors, a fifth generation Coors Brewing Company family member.
When Salad Collective announced the launch of the Mad Greens franchising strategy at the start of last year, the Colorado-based company, which also owns quick-service brands Snappy Greens and Tokyo Joe’s, was hoping to have 50 percent more stores under development by the end of 2023 in its core markets of Colorado, Arizona and Texas. “Now is the perfect time to launch full force into our franchise development strategy,” Coors said in a company press release at the time.
Rising real estate costs and supply chain issues with fresh produce, along with difficulty signing qualified restaurant operators, however, have held up development plans for Mad Greens.
Through it all, Coors has remained optimistic and is convinced that future growth is coming soon for the concept, which features salads, wraps, grain bowls and juices. She said the company, which operates 23 Mad Greens with another licensed location in Austin-Bergstrom International Airport in Texas, is “real close” to signing its first franchise agreement, although she wouldn’t provide the details until it becomes official.
Darden Coors is the CEO of Salad Collective which owns Mad Greens, Snappy Greens and Tokyo Joe’s.
The company, meanwhile, has undergone several executive changes. John Montgomery, the former president and chief operating officer, left to take on a similar role at burrito brand Illegal Pete’s. Coors said there are no plans at this time to replace Montgomery. Jerry Teague was appointed chief of development and supply chain, Jeremy Marshall has been promoted to COO and Tom Eichenberger is now serving as chief financial officer for the Salad Collective’s three brands.
Salad Collective operates 60 company-owned locations, including 27 Tokyo Joe’s and 10 Snappy Salads. Mad Greens, which was acquired by AC Restaurant Group, a Coors company run by Darden Coors, had 25 company locations in 2023 but closed two locations in the last year because of expired leases, said Coors.
“Over the last six months the focus has been really bringing the team and culture together with the acquisition of Tokyo Joe’s,” said Coors, “and from a company perspective I’m really excited about the place that we are in, even though there’s been some frustrations about not being able to grow as fast as we might want to.”
Average unit volume for Mad Greens’ corporate stores was just under $1.4 million, with an EBITDA, or cash flow, of 8.3 percent in 2023, according to the company’s website.
With 50 percent of overall sales coming in digitally and only 15 to 20 percent of customers actually dining in at its restaurants, the brand announced in March it was leaning further into supporting its off-premises and catering demands with a new prototype design. It also said it had tested drone delivery in Arizona.
“Our focus on where we want to grow the brand now is kind of a narrow geographic area. We want to open new locations in the three states where we are in now and not venture too far out from there because of supply chain challenges,” Coors said.
Coors said the company wants qualified restaurant operators who are committed to opening at least two to three Mad Greens in its core markets, but said she’s also open to signing one-off deals with franchisees in certain markets where it makes sense, like in Phoenix. She also said any future operators must be committed to investing in their communities and “keeping the brand fun.”
“We try to differentiate ourselves by trying to have a bit of fun with a little bit of personality and quirkiness to our brand, along with bringing the good flavors. We call it ‘Embrace the madness,’ she said. “In my opinion, that is something that has been lacking in the healthy food space, which is often perceived as bland and boring.”