For many years, the Denver area has been home to the two largest burrito restaurant chains in America. Come January, that number will sink to one.
Qdoba Mexican Eats is moving its headquarters from Lakewood to San Diego shortly after Jan. 1. The move will consolidate the same offices as parent company Jack in the Box Inc. (Nasdaq: JACK).
It's part of a greater restructuring of the 21-year-old restaurant company, which included the hiring of a new president last month and the elimination of a number of other jobs once the local headquarters is shuttered.
About 95 people now work in the local office, located in the Belmar mixed-use community, new brand president Kieth Guilbault said in a statement released by the company on Friday. An unspecified number of those workers will be offered jobs in California, while others will receive severance packages based on their positions and their longevity.
“Last week at a meeting with our investors in Kansas City, we announced a number of initiatives intended to drive the continued growth and success of our Qdoba and Jack in the Box brands as well as our plans to reduce overhead costs,” Guilbault said. “As part of those plans, the company will consolidate its functions in San Diego and close Qdoba’s support center in Lakewood around Jan. 1.”
Qdoba launched in Colorado around the start of the fast-casual boom in the mid-1990s, coming to life around the same time as still-local chains like Chipotle Mexican Grill, Noodles & Company and Tokyo Joe’s. Though it never rose to the growth level of Chipotle, with more than 1,750 national locations, it ranked as the 35th-largest quick-service restaurant chain in the country last year, with 638 units that accounted for $669.4 million in revenue in 2014, according to QSR magazine.
Still, the brand has taken steps to try to differentiate itself more from its competition and strengthen its place in the fast-casual market in recent years. It bundled extras like guacamole and queso into the price of its burritos in late 2014 to make customers feel they weren’t getting nickel-and-dimed on their food. And just this year, it began exploring a full-bar concept at a small number of restaurants to appeal to a bigger audience.
Guilbault acknowledged the positive effect that Denver — considered a top incubator city for fast-casual chains — has had on Qdoba, even as it gets ready to move its headquarters out of the area.
“We’re grateful to have called Colorado home for more than 20 years and are grateful to our employees here who have helped drive the success of this great brand,” he said. “We’re looking forward to maintaining a strong presence in the state for many years to come. Our top priority right now is to support those employees impacted by the move while continuing to deliver an unmatched restaurant experience to our guests.”
He added that the restaurant, which has about 80 Colorado stores, plans to accelerate its growth in the near future.
