Blue Moon Has Appetite For Expansion

North Jersey:

The Wyckoff-based Blue Moon Mexican Cafe restaurant chain Wednesday announced plans to sell franchises, a move the company hopes will grow the chain to dozens of locations in the Northeast from five eateries as it addresses Americans’ appetite for Mexican cuisine.

Franchisees will pay an initial fee of $40,000 for the right to open a Blue Moon restaurant, and a royalty fee of 5 percent of sales. Blue Moon estimates the start-up costs for opening a restaurant at between $370,000 and $482,000, and is looking for investors with a minimum net worth of $600,000.

Blue Moon is looking to expand as competition heats up in the $11 billion Mexican-food restaurant sector. Chipotle Mexican Grill Inc., the food chain McDonald’s Corp. sold to the public last year, has grown to nearly 600 restaurants nationwide. Restaurant rivals including Salsarita, Qdoba and Baja Fresh are battling for suburban locations.

Blue Moon has formed Blue Moon Franchises LLC to oversee the franchise operation and hopes to award 7 to 10 franchise locations within a year.