Santa Ana-based Wahoo’s Fish Taco is looking to add more than 100 restaurants in the next five years.
The surfer-inspired Mexican restaurant chain plans to grow through franchises on both coasts after adding an executive with franchising knowhow.
It’s a big shift for the chain, which has grown for much of its history through company-owned restaurants.
“We could have opened more corporate stores, but we made the decision to give our franchises our full attention,” said Wing Lam, cofounder of the chain.
This month, Wahoo’s opened its third university location, at California State University, Bakersfield, with franchise partner Philadelphia-based Aramark Corp.
Aramark—which only recently became a franchisee and whose main line of business is providing food, facilities management and clothing to businesses, courts, schools, the military and others—owns and operates another Wahoo’s at the University of California, Irvine. That restaurant opened last year.
The company recently signed on a franchisee in Houston who plans to open 11 restaurants in Texas in the next couple of years.
Wahoo’s also is eyeing the East Coast for restaurants, according to Tom Orbe, the company’s vice president.
Family-owned Wahoo’s was started by brothers Lam, Ed Lee and Mingo Lee in 1988.
The restaurant has grown gradually with 54 locations throughout California, Colorado, Texas and Hawaii.
Wahoo’s has been franchising restaurants since 1993, but usually only to friends of the founders. It has 21 franchises, mostly in Colorado and Texas.
The company has been hesitant to grow beyond known surf hubs, according to Lam.
But after seeing success with an Austin, Texas, location, the chain is changing its tune.
“(Austin) wasn’t the surf hot spot of the world, but it played real well there,” Lam said. “We thought maybe this concept had legs.”
It wasn’t until Orbe came on board in September that the company formalized its franchise plans under his guidance.
Orbe has a long history in the automotive and motorcycle industries, specifically in helping to set up and support franchises.
“For the first time we have somebody who has been there and done it before,” Lam said.
Orbe has a personal stake as a Wahoo’s franchisee. He operates the Temecula restaurant with his daughter.
“I never thought I could afford to bring Tom on,” Lam said. “I convinced him that in helping out his daughter, he could maybe shape the direction of the company.”
The company began soliciting franchisees subtly through its Web site last year and received a strong response.
The company is taking a conservative approach to its growth, despite receiving more than 400 applications for restaurants in the past few months.
“We could easily grow to 400 to 500 restaurants, but we want to make sure we don’t become cookie cutter,” Orbe said.
Franchisees are selected on various financial and other aspects, including passion for the brand and its culture.
“We joke if you can’t surf or at least do a board sport, you can’t have a franchise,” Lam said.
The chain has yearly revenue of about $32 million.
