ATLANTA — Paul Damico has wasted little time getting to know Moe's Southwest Grill since being named president in May.
In his second day on the job, Damico was learning how to make burritos at the company test kitchen in Atlanta. In the past four months, he's visited more than 60 stores and held regional meetings with franchisees across the United States.
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Damico took over a Moe's brand that has showed potential for growth but also hit speed bumps along the way.
Focus Brands, an Atlanta-based restaurant group, bought Moe's last year from Raving Brands, another Atlanta-based restaurant group. Raving has lawsuits pending against it from several Moe's franchisees.
Focus, which is not named in the lawsuits, is attempting to energize the brand with new menu items, store concepts and TV commercials.
Focus recently completed a study of the Moe's brand and how it stacks up against competitors, such as Chipotle and Qdoba. The Atlanta Journal-Constitution talked with Damico about burritos, expansion and the three words he can't hear enough.
Q: What did the research tell you about Moe's?
A: What that research said is that we have some unbelievable differentiating factors compared to our competitive set. Those are the "Welcome to Moe's" (greetings to customers as they walk through the door.) You can't get that anywhere else. You can't get the free chips and salsa (at other major competitors). We are kid friendly. We are family friendly. We have flavor profiles that those 3,000 people (included in the research) said exceeded our competitive set.
Q: Can you give some examples of how that feedback could change Moe's?
A: I'm working on a new store design, a new prototype. We're going to triple the size of our salsa bar in our new store design. We're going to introduce seasonal salsa. We're going to do corn salsas. We're doing to do mango salsas. We're going to do all kinds of salsas from all over the place.
Q: What other menu items are coming?
A: The pulled pork is a new protein for us. That is going to be around as a staple of our menu. ... I believe the pork is going to be our No. 1 protein. If people are willing to try it, it's really over the top. The green chili marinade (for the pork) ... well, you've got to eat it. It's craveable.
Q: Do you have limited-time-offer items in the works?
A: We have four items in test right now. ... One of the items is buffalo chicken. But that buffalo chicken, you can have it on a burrito, in a salad or in a quesadilla. We're testing whether or not our customer base likes the buffalo chicken product.
Q: Moe's celebrated its 400th store opening last month with the addition of an outlet in Plant City, Fla. How soon could Moe's hit 500?
A: Our goal is to hit 100 store openings next year. We certainly have the deals completed this year to accomplish that. Now whether or not those actually come out of the ground next year is a function of real estate, what's happening with those franchises in their markets.
Q: What's the single biggest issue you want to address before the end of the year?
A: Some of the stores across the country need to refresh. They have POP (point-of-purchase material) up from three promotions ago. That sends a confusing message to the guest. An LTO is called an LTO because it's a limited time offer. It has an expiration date. After that, we want it come down. Even if it was a great seller, we want it to come down because we want to drive people back in the store when we do it again. "Operation Refresh" is something we're going to get focused on for all 400 stores. Get them current with their POP. Everybody should have the pork up. Everybody should have the Cobb salad down.
Q:What do you look for when you walk in a Moe's?
A: First, I look at the ceiling because I want to see if the light bulbs are burned out. It's a pet peeve of mine. The second thing I look for is whether there's dust on all the rafters. The next thing I look for is the salsa bar because the salsa bar is a very important aspect. If the salsa bar looks like a kid went over there with a baseball bat, the customer isn't going to think it's a great aspect of the brand. Then, I immediately go behind the line. ... I start with a stack of spoons and I'll try the rice and beans because those are the two things if they're not prepared right ... it will screw everything up.
Q: You've probably heard "Welcome to Moe's" quite a few times by now. Do you ever get tired of hearing that phrase?
A: No! It's a staple. It's one of the main things that separates us that is immediately evident when you walk in. That "Welcome to Moe's" saying is in the hearts of minds of thousands if not millions. I walk through the airport in this (Moe's) shirt and the TSA will say "Welcome to Moe's." I give them a $5 gift card right on the spot. The flight attendant, "Welcome to Moe's." If I drop my daughter off at high school, "Welcome to Moe's. Welcome to Moe's." You can't buy that. That is brand equity that is not for sale.
Joe Guy Collier writes for The Atlanta Journal-Constitution. E-mail: jcollier AT ajc.com.
