Qdoba Mexican Eats

History

This chain traces its origins to the opening of the Zuma Fresh Mexican Grill in 1995 by Colorado native Anthony Miller and partner Robert Hauser at Grant Street and Sixth Avenue in Denver, which is still in operation.

Miller and Hauser met in New York City, where Miller was an investment banker with Merrill Lynch, and Hauser attended the Culinary Institute of America, working at the famed Le Cirque restaurant. Hauser developed most of the recipes, designing the menu to be healthier by replacing traditional animal fats with vegetable oils and using more fresh vegetables and herbs. During the first year, lines stretched out the door most evenings, but it usually took roughly seven minutes for customers in a 30-person line to be served. Zuma was a made-up name but was also the name of a friend's cat.

The Denver location was an immediate success, with first-year revenues exceeding $1,500,000. The cost of opening the 1,300-square-foot (120 m2) store had been only $180,000.

In 1997, the name of the company was changed from Zuma to Z-Teca Mexican Grill because of a lawsuit from another restaurant using Zuma in Boston and confusion caused by the similar-sounding name of a chain that was operating in the Denver area at that time, ZuZu Handmade Mexican Grill. During the same year, Z-teca began to offer franchise opportunities to entrepreneurs to expand the chain outside of its core territory of Colorado.

In exchange for a large stake, Western Capital and other investors gave the company a large infusion of capital in early 1998 to allow the company to open 25 new locations and nearly triple its size. Later that year, Gary Beisler was hired to replace Miller as president and chief operating officer, while Miller remained chief executive officer. By mid-1998, Z-Teca had 21 locations in 9 states, with 10 of those locations being franchises. At that time, a chicken burrito cost only $4.79. By December 1999, Z-Teca had 49 locations in 19 states.