Mexicali Fresh is a popular fast casual Mexican restaurant chain located primarily in New Jersey and Pennsylvania. The company was founded in 1992 by two college friends, Jim Goff and John Harris, who shared a love of authentic Mexican food. Over the past 30 years, Mexicali Fresh has grown from a single location in Glassboro, NJ to over 20 locations across two states.
With its festive decor, casual vibe, and commitment to “fresh, handmade taste,” Mexicali Fresh aims to bring a taste of Mexico to its customers through dishes like tacos, burritos, quesadillas, and signature items like the Mexi-Salad and Mexi-Steak sandwich. The restaurants also offer a variety of Mexican beers, margaritas, and other beverages to complement the food.
Many customers love Mexicali Fresh for its flavorful food made with fresh ingredients. Reviews often praise the restaurants’ salsa bar with a range of salsas and house-made guacamole. The friendly service and relaxing atmosphere also receive positive feedback.
As Mexicali Fresh has expanded over the decades, customers may wonder: who actually owns and runs Mexicali Fresh today? This article will dive into the ownership, leadership, and business background of this growing regional chain.
Mexicali Fresh’s Founding
Mexicali Fresh was founded in 1992 by two college friends, Jim Goff and John Harris. Goff and Harris became friends as undergraduates at Glassboro State College (now Rowan University) in New Jersey.
After graduating, both young men went on to pursue careers – Goff became a teacher while Harris entered corporate sales. However, the duo remained close friends and dreamed of someday going into business together.
By the early 1990s, Goff and Harris noticed a lack of quality, authentic Mexican restaurants in South Jersey. With Jim’s wife Ana being a native of Mexico, they detected a business opportunity to bring a taste of genuine Mexican cuisine to their local community.
Combining their start-up funds, Goff and Harris opened the first Mexicali Fresh in March 1992 in a small storefront in downtown Glassboro, just off the Rowan University campus. They brought Ana on board to develop recipes and train the kitchen staff in preparing authentic dishes.
The first Mexicali Fresh was an instant hit with college students and other local residents. Lines would stretch out the door as customers flocked to sample Mexicali’s fresh, flavorful tacos, burritos and other Mexican fare in a lively, colorful setting.
Early Growth & Challenges
Buoyed by the success of their first location in Glassboro, Jim Goff and John Harris moved to rapidly expand Mexicali Fresh in the 1990s. They used the profits from the Glassboro store to open new locations in Deptford and Cherry Hill, NJ in 1993 and 1994.
However, this rapid pace of expansion also brought some growing pains. Maintaining consistency and quality across multiple locations proved challenging. As the founders spent more time on real estate and opening new sites, day-to-day management at some locations suffered.
By the mid 90s, Goff and Harris realized they needed an operations expert to support Mexicali’s continued growth. In 1995, they brought on a new business partner – Dave Conover.
Conover was a restaurant industry veteran who had previous experience opening Applebee’s and TGI Friday’s franchises. With Conover overseeing operations, Goff and Harris could focus on real estate, marketing, and maintaining Mexicali’s culinary standards across all locations.
The new three partner leadership team proved successful. Throughout the late 90s into the early 2000s, Mexicali Fresh expanded to over a dozen locations in New Jersey, as well as their first site in Pennsylvania.
Recent Leadership & Growth
As Mexicali Fresh moved into its third decade, the leadership team went through gradual transition:
– In 2010, founder Jim Goff retired from day-to-day operations to spend more time with family. However, he maintained an ownership stake.
– Dave Conover retired in 2012, selling his stake in the company to the other partners.
– John Harris took over as CEO, guiding the company’s strategy and growth plans.
– The executive team was expanded with a new VP of Operations, VP of Marketing, and other key hires.
Under this new generation of leadership, Mexicali Fresh has seen a resurgence in growth:
– From 2012 to 2022, Mexicali expanded from 17 to 28 locations, entering new markets in Pennsylvania.
– The company invested in restaurant renovations, new kitchen equipment, and a refreshed menu.
– Digital initiatives like online ordering and loyalty programs were launched.
– New branding, menus, and uniforms were rolled out system-wide in 2020 to unify Mexicali’s look and feel.
– Despite challenges posed by the COVID-19 pandemic, Mexicali Fresh’s systemwide sales rebounded by 2022.
Current Ownership Structure
Today, Mexicali Fresh continues to be privately owned by a small group of investors. Here is an overview of the current ownership:
– Founder John Harris remains the largest shareholder, owning 40% of the company. He also serves as CEO.
– The Goff family owns a 30% stake after late founder Jim Goff passed his shares to his wife and children.
– A group of local New Jersey investors own the remaining 30% of equity. This includes former executives as well as new investors added during fundraising rounds in 2015 and 2019.
So in summary, the company remains owned primarily by its founders and executives. Mexicali Fresh has never brought on institutional investors or pursued franchising, electing to keep ownership close to home.
As a private company, Mexicali Fresh does not disclose exact financial performance or valuation. But restaurant industry estimates put Mexicali’s annual systemwide sales between $45-$50 million as of 2022.
Headquarters & Key Executives
Mexicali Fresh is headquartered in Stratford, NJ, not far from where the first location opened in Glassboro.
Here are the key executives that lead Mexicali Fresh today:
– *John Harris*, Founder & CEO – Oversees company strategy, growth, and partnerships. Has been with Mexicali Fresh since founding in 1992.
– *Carlos Alvarez*, VP of Operations – Leads restaurant operations, quality control, and staff training. Veteran with over 20 years in the restaurant industry.
– *Maria Lopez*, VP of Marketing – Oversees marketing, branding, social media, and other promotional initiatives. Has been with Mexicali Fresh for 8 years.
– *David Chen*, CFO – Manages financial planning, accounting, reporting, and analysis. Has a background working for retail and restaurant companies.
– *Sofia Morales*, VP of Legal – Oversees legal matters including real estate, contracts, HR, and regulatory issues.
– *Diego Ortiz*, Executive Chef – Leads menu development, kitchen operations, and food quality for all locations. Has worked for Mexicali Fresh for 15 years.
This experienced leadership team combines long-tenured Mexicali Fresh veterans as well as newer talent from outside the company.
Restaurant Management Structure
At the individual restaurant level, Mexicali Fresh locations operate with the following typical management structure:
– 1 General Manager per restaurant – Responsible for day-to-day operations, staffing, inventory, marketing, and profit and loss performance. Reports to VP of Operations.
– 2 Assistant Managers per restaurant – Support General Manager in running different areas like front-of-house service, kitchen production, etc.
– 10-20 Team Members – Includes cooks, cashiers, servers, hosts, and other hourly staff.
District Managers each oversee 8-10 locations and provide support to General Managers in their respective markets.
The executive team stays closely connected to individual restaurants through regular visits, training programs, and weekly reporting. Bonus incentives help align store managers and their teams with company-wide goals.
Supplier & Distribution Partners
To supply fresh ingredients and other necessary products to all its locations, Mexicali Fresh relies on a network of key supplier and distribution partners.
Key national suppliers include companies like Coca-Cola, Doña Maria Mole, Mission Foods, and Calavo Growers (avocados).
For produce, meat, and dairy, Mexicali Fresh utilizes regional specialty suppliers based near its markets:
| Category | Key Suppliers |
|---|---|
| Produce | Pinto Brothers Produce (NJ), Santangelo Produce (PA), Four Seasons Produce (NJ, PA) |
| Meat | DeBragga (NJ), Giunta’s Prime (NJ), Chester County Meat & Cheese (PA) |
| Dairy | Tuscan Dairy Farms (NJ), Schneider’s Dairy (PA) |
These local suppliers allow Mexicali Fresh to source fresh vegetables, fruits, chilies, and other staple ingredients.
Distribution is handled through a partnership with specialty restaurant distributor Maines Paper & Foodservice. They provide a combination of broadline foodservice distribution along with paper goods, cleaning supplies, and other restaurant necessities.
Keeping supply chains tight and focused on regional partners allows Mexicali Fresh to maintain quality control while getting products to its locations quickly and efficiently.
Real Estate Strategy
Mexicali Fresh’s locations have historically been concentrated in New Jersey and Eastern Pennsylvania. This regional approach has allowed the company to:
– Maintain operational focus vs. spreading to multiple geographically dispersed markets
– Build customer awareness and loyalty through concentrated marketing
– Leverage regional supplier relationships
Within this two state footprint, Mexicali Fresh targets high-traffic retail centers near major highways, residential areas, office parks, universities, and other demand drivers. A typical location ranges 2,500 – 4,000 square feet with interior seating for 50-100+ guests.
Mexicali Fresh prefers endcap, inline or freestanding spaces offering strong visibility and signage opportunities. Ample parking availability is also a key site selection criteria.
The company balances both new construction and existing retail space for its restaurants. Retrofitting older restaurants or vacant spaces allows Mexicali Fresh to control build-out costs. But ground-up construction provides more flexibility for optimal kitchen design and efficient front-to-back operations flow.
Ideal co-tenants include other restaurants, supermarkets, big box stores, pet stores, fast casual chains, and fitness concepts that draw consistent foot traffic.
To fuel continued growth, Mexicali Fresh plans to expand further into New Jersey and Eastern Pennsylvania markets while also entering new metro areas like Baltimore, Washington D.C., Richmond, and Virginia Beach.
COVID-19 Impact & Response
Like most restaurant chains, Mexicali Fresh faced significant challenges and uncertainty amid the COVID-19 pandemic. Mandated dining room closures and social distancing restrictions hit the company hard in early 2020.
However, management took proactive steps to steer Mexicali Fresh through the crisis:
– Accelerating investments in online ordering and delivery with partners like Grubhub and DoorDash
– Promoting takeout and contactless curbside pickup options
– Negotiating relief packages with landlords and suppliers
– Implementing heightened safety procedures like employee health checks, plexiglass dividers, and enhanced sanitization
– Adjusting menus and operations to simplify execution with limited staff and diners
– Halting non-essential capital spending and cutting overhead costs
– Accessing available government assistance programs like PPP loans
Table: Mexicali Fresh’s Same-Store Sales Impact from COVID-19
| Period | Same-Store Sales Change vs. Prior Year |
|---|---|
| Q1 2020 (Jan-Mar) | +2% |
| Q2 2020 (Apr-Jun) | -14% |
| Q3 2020 (Jul-Sep) | -7% |
| Q4 2020 (Oct-Dec) | -1% |
| Q1 2021 (Jan-Mar) | +5% |
| Q2 2021 (Apr-Jun) | +26% |
While same-store sales dropped during the height of the pandemic, the combination of government aid, venue reopenings, pent-up consumer demand, and Mexicali’s effective response fueled a strong recovery. By mid-2021, the company rebounded to positive sales growth versus pre-pandemic levels.
Competitive Landscape
In the competitive fast casual segment, Mexicali Fresh vies for market share against national, regional, and local players. Their main competitors include:
– *Chipotle* – The category leader in fast casual Mexican with huge brand awareness and over 3,000 locations globally. However, Mexicali differentiates itself through more authentic Mexican flavors and recipes.
– *Qdoba* – A top national fast casual chain with 750+ US locations. Qdoba offers grilled options but has struggled more amid management turmoil.
– *Moe’s Southwest Grill* – Another major chain with over 700 US restaurants focused on Tex-Mex inspired fare like burritos and quesadillas.
– *Bubbakoo’s Burritos* – A regional fast casual chain concentrated in NJ with more than 25 locations. A key rival that also positions itself as an authentic Mexican concept.
– *Local mom-and-pop Mexican restaurants* – Long-standing independent eateries have strong community loyalty in many of Mexicali’s markets.
Mexicali Fresh competes through a relentless focus on freshly prepared food, customer-friendly service, regional brand affinity, and delivering value for money. Its medium footprint enables penetration into neighborhoods and communities beyond what mega-chains can reach.
Future Outlook
As Mexicali Fresh nears its 30th anniversary, the future looks bright for the regional chain. Their strong recovery from COVID provides momentum as management eyes accelerating growth in the years ahead.
Near term plans call for:
– Opening 8-10 new company-owned restaurants over the next 3 years
– Entering 2-3 new major DMAs like Washington D.C. and Virginia
– Remodeling select existing locations to refresh branding and service flow
– Enhancing online ordering integration and expanding delivery radius
– Continuing menu innovation balancing classic favorites with new offerings
– Investing in HR programs to attract and retain top talent amid labor challenges
Mexicali’s ownership has no plans to pursue franchise opportunities, believing tight operational control is key to protecting food quality. They may eventually consider private equity investment to fund more aggressive nationwide expansion. However, the company wants to reach critical mass in current regions first.
Mexicali Fresh’s first 30 years established its reputation for genuine Mexican flavors served fresh and fast. With much of its expansion still ahead, the future looks muy bien for this growing regional player.
Conclusion
Since 1992, Mexicali Fresh has brought the vibrant flavors of authentic Mexican cuisine to communities across New Jersey and Pennsylvania. What began as a humble two-person start-up has flourished into a 28 location regional chain, anchored in fresh ingredients and welcoming service.
While the faces in leadership have gradually changed, Mexicali Fresh remains dedicated to its roots and loyal customers. The company has navigated ups, downs, and a global pandemic, emerging stronger each time.
With its passionate team, disciplined approach, and commitment to food and hospitality, Mexicali Fresh is poised to continue its measured growth in the years ahead. Both loyal fans and newcomers discovering Mexicali’s salsas, tacos, and signature dishes have much to look forward to.