Local tech exec opening Hawaiian-taco eateries here
Sacramento Business Journal - May 6, 2005by Mark Anderson Staff Writer

Lava Flow Ventures, a new local company led by a tech entrepreneur on his second career, is bringing the Maui Tacos franchise to Northern California -- a chain that blends some of its traditional Mexican food with the flavors of Hawaii.

The first restaurant opened in 1993 in Napili, Maui, when chef Mark Ellman started a Mexican restaurant to settle his craving for a taqueria. Ellman had lived in Los Angeles, and got used to having good Mexican food available around any corner. He couldn't find much on the island, so he opened his own.

Apparently he wasn't alone, because the idea took off. He had six more sites on Maui, Oahu and Hawaii within three years. The first one to land on the mainland opened in 1998. There are now 19 restaurants, with plans for nearly 50 more by 2008.

The only Maui Tacos in California so far are in Gilroy and Hayward, but the Sacramento area is about to get a few. Franchisee Bryon Axt has signed up to open at least 12 local restaurants over the next five years.

Axt sold his Rocklin electronics manufacturing company to Varian Inc. in 2000, but stayed on with the company. This year Varian sold the factory to another buyer, which is shutting the Rocklin plant, so Axt is moving on to a second career in tacos.

Axt grew up in the restaurant business in the Bay Area, and says he looks forward to getting back into it. Axt hopes to nail down his first leases this spring.

Taco avalanche: Taco Del Mar, a quick-serve restaurant specializing in fish tacos and featuring giant burritos, is about to bombard the area with new locations.

The first opens in June in Cameron Park in Sam's Town Village, followed by one in July in Placerville. West Sacramento, Folsom, Citrus Heights, Rocklin, Roseville and Natomas are supposed to get shops before the end of the year. And there are more in the works after that.

Taco Del Mar's brightly colored restaurants have a Baja theme, with surfboards used as decorations and tables. The Seattle chain uses spaces of 1,000 to 1,500 square feet, pretty small for a restaurant.

The concept doesn't need a commercial kitchen, says Bill Wright of El Dorado Hills. He co-owns Stellar Ventures Inc., the master franchiser for Taco Del Mar franchises in Sacramento, the East Bay and the Delta region of California.

Stellar has sold 25 franchises in Sacramento since starting seven months ago. Stellar is bidding on 21 leases around the area, is about to bid on 10 more, and has 12 signed leases and eight sites in review.

He has also buttoned up 15 leases in Fresno, and plans to start expanding into Reno this summer.

Wright used to own 20 Subway units in eastern Washington. He began developing Taco Del Mar stores in central Washington and Utah two years ago.

Taco Del Mar is similar to Subway sandwich shops in that the shops have no kitchen. Fresh produce is prepped in the stores, but the meat is delivered pre-cooked by a vendor -- Sysco Corp., in this case. At the stores, the employees simply warm the meat and beans. That means the leased space doesn't need a kitchen, a large grease trap, a ventilation hood or a lot of other expensive equipment.

Developing a store usually costs about $185,000. California costs more, at around $220,000, but that's still less than one-fifth of the cost of opening a restaurant with a working kitchen and grill.

"Once we get the lease and all the permits from the city or county, we can build it out in six weeks," Wright says.

The design of the restaurant also allows for a streamlined work force, with a crew of just three or four people working the counter. The stores have a walk-in cooler, steam tables and a flash-bake oven -- used to quickly heat the frozen fish. Salsa and guacamole are made fresh on site.

Wright says taquerias are the fastest-growing fast-food segment.

If Chili's had a drive-through ...: The first Habit Burger Grill opened in Roseville at the end of April in the Ralphs shopping center at Douglas and Sierra College boulevards. It replaces a Blimpie's and so far is doing quite well, says Brent Reichard, who founded and owns the Santa Barbara-based company.

The local store is company-owned. Reichard says he's looking for a site on the other side of Roseville, as well as locations around Arden, Natomas and Elk Grove.

Habit Burger sells burgers, skinless chicken breast, vegetarian and grilled tuna sandwiches, plus salads and a tri-tip sandwich. The typical location usually sells three tri-tips for every chicken sandwich. In Roseville, the ratio is reversed, Reichard says.

"We're in a niche between Chili's and the drive-through," he says. Charburgers start at less than $3 apiece, and the tuna and tri-tip cost around $5.

Area gets its first Sonic Drive In: The area's first Sonic America's Drive In just opened in Woodland last weekend, featuring drive-in and drive-through service.

The company, founded in 1953, still features a drive-in, where carhops deliver food to the cars parked in front. Sonic (Nasdaq: SONC) is the largest chain of drive-ins in the country. It's up to the carhops whether they wear roller skates or not. The Woodland operation, at 1580 East Main St., has 23 parking stalls and a small dining area inside and outside.

The restaurant is being franchised by Michael Alizadeh, brother of Abe Alizadeh, the local franchisee of Jack in the Box and Qdoba restaurants in Northern California.

Sonic Corp., based in Oklahoma City, has more than 2,900 locations coast to coast, mostly through the South, the Great Plains states, Texas and the Midwest.

The menu has the basic fast-food fare of burgers, shakes and hot dogs. It also has wraps, chicken dishes and salads. Sonic is open for breakfast, lunch and dinner, and the whole menu is available at any time.

The breakfast menu is the kind of thing you would imagine eating in a car, from the sandwiches and french-toast sticks to breakfast burrito and pancake on a stick.

Contact Mark Anderson at manderson@bizjournals.com.

 

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