In the wake of the coronavirus pandemic and a surge in off-premises sales, restaurant brands have been busy designing new, smaller prototypes with fewer tables.
That isn’t the case at 75-unit Pancheros Mexican Grill. Though data reflects a move toward digital and delivery sales, brand leadership still sees value in maintaining units between 2,400 and 2,500 square feet with more than 20 tables.
“We’re bigger than some of our competitors or brands in the same space as us because we haven’t downsized,” said Shannon Kraus, director of design and construction at Pancheros. “We want to respect all of our guests, and we want to create an inviting atmosphere for all of them, whether they’re in the restaurant or picking up their takeout. We want a dining room that accommodates everybody.”
Pancheros Director of Design and Construction Shannon Kraus
In addition to providing dining rooms for up to 22 tables, Kraus said keeping spaces sizable is in line with larger operations. To accommodate digital ordering, the brand added a second food production line in some of its kitchens.
Steve Majkrzak, a Pancheros franchisee since 2007 with four locations in Minnesota and North Dakota, said he first implemented the second line in one of his stores in May 2020. He said it’s allowed staff to keep up with digital sales without sacrificing efficiency.
“Our customers don’t have to be alienated from those online orders, and it helps our staff create better customer service,” Majkrzak said. “We can keep our operation in a kind of pre-digital era, which is focusing on providing the best type of experience for our customer that’s in front of them, while the second make-line handles online.”
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Pancheros President Rodney Anderson, who launched the brand in 1992, said about a third of restaurants have added the second production line, and the brand will implement it in half of its units in the near future. Anderson said the second line hasn’t required additional employees.
Pancheros founder and President Rodney Anderson
“We really don’t have more labor, we’re just deploying it differently,” Anderson said. “We’re fine tuning that, and it’s putting less people shoulder to shoulder on the front line for the in-restaurant dining guests.”
To ensure restaurant traffic keeps moving smoothly, the brand added pickup windows, and in some cases, drive-thru options.
“All new buildings will have a pickup window and we’re working on remodeling existing restaurants to have pick-up windows as well,” Kraus said. “It’s about circulation, getting those people in and out as quickly as possible. We have a couple locations that have a drive-through pick-up as well, and we’re continuing to explore those.”
Majkrzak called the pick-up windows at his stores “tremendous.”
“We’ve seen that with the pick-up window, sales have continued to increase through 2024,” Majkrzak said. “It’s a number that we feel the sky’s the limit with and it continues to grow to this day.”
Finding the right balance between dine-in and the digital-driven off-premises sales is especially important to a developing concept, Anderson said.
Pancheros franchisee Steve Majkrzak
“I think you need that dine-in experience to build a brand,” Anderson said. “We’ve found much success by keeping our units at about 21 tables, and we’re filling those tables. We’re seeing people come in, and I think it really is a differentiating factor and good for business. I think we have the right model now. As a developing brand, it’s smart to retain the seating, it gives an opportunity for people to try the restaurant, sit in it and enjoy it.”
That sense of customer service is foundational for Pancheros, Majkrzak said.
“While COVID certainly gave us this push into a digital era, I think that our customer base is craving that old-school style of experience with Pancheros,” Majkrzak said. “There’s been a cool boomerang effect after the pandemic where we captured a digital audience, but we’re also seeing those familiar faces returning to our stores.”
The initial investment for a Pancheros is between $680,500 and $1.38 million. In 2022, the brand had $105.2 million in total sales.